A PROJECT REPORT ON CONSUMER BEHAVIOUR AND MODE OF COMMUNICATION

Organisational Guide: Mr. HITESH RUPANI (Assistant Manager, Marketing)

Submitted by: ANKUR JYOTI CHOUDHURY ITM Business School, Navi Mumbai

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PREFACE

M.B.A being a professional course project becomes an indispensable part of formal education. It helps us to have a practical exposure as well as better outlook of the subject, which we are studying. In M.B.A the students equipped with strong theoretical knowledge about the business operations and the time-tested methods of running a successful business. Only acquainted with the theoretical knowledge will not do, we do need an exposure to real practical and to certain assigned projects in various organizations to get an idea of practical working styles. The Indian telecommunication has 550 million subscribers which is the fifth largest in the world and second largest among the emerging economies of Asia. In order to make the data and findings easily understandable, efforts have been made to present the information in a simplified, lucid and organized manner. Wherever possible, tables and figures have been incorporated. Recommendations have been made on the basis of findings herein and keeping in mind the future opportunities. This project gave me immense practical exposure to the practical working patterns and the environment. I will be satisfied if the organization gets benefit with the study and the findings.

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ACKNOWLEDGEMENT
This project is an outcome of eight weeks mandatory summer training, which I had to undergo for the partial fulfillment of the PGDM program. I wish to put on record my sincere gratitude to the following person without whose support the completion of this project would not have been possible. I am extremely grateful to the management of ³VODAFONE ESSAR´ for giving me the golden opportunity to do my summer training project work in Guwahati city. Working in the marketing area was a life time experience for me that too in such an organization. At the very outset with due respect, I would like to offer my heartiest gratitude and thankfulness to my Company Guide Mr. HITESH RUPANI(Assistant Manager, Marketing) & Mr. RAVI TANEJA(Business Development Manager) for giving me the opportunity to work at ³VODAFONE ESSAR´ Guwahati. I would also like to thank Ms SABINA YASMEEN (HR Manager, VODAFONE) for her generous help, in spite of her busy work schedule. I would also take this opportunity to thank my Faculty Guide Dr. V. V. Sople, ITM Business School, Navi Mumbai, for giving me his time, immense support and guidance at every step of the project.

(ANKUR JYOTI CHOUDHURY)
ITM Business School, Navi Mumbai
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EXECUTIVE SUMMARY
PROJECT TITLE: PLACE: ³Study on Consumer behaviour and Mode of Communication´ VODAFONE ESSAR, Guwahati

I have successfully accomplished my 2 months internship at ³Vodafone Essar´ Guwahati for the assigned project titled ³Study on Consumer behaviour and Mode of Communication´ Mr. Hitesh Rupani was my project guide who guided me on how to carry on with the project. Purpose of the study: The main objective of the research was to ±  Study the perception of Vodafone¶s products and services by customers.  Mode of communication preferred by customers and trade vis-à-vis competition in relation to new product launch and various promotional offers. This report includes an overview of the project undergone during the summer training. This report is mainly divided into four parts:I. In the first part, we have mentioned the overview about Telecom Industry, about Consumer behaviour and about Vodafone. II. The second part of the report mainly focuses on the Methodology III. The third part consists of analysis which is based on our survey during the internship of eight weeks. IV. The fourth chapter summarizes the whole report and state the Findings and gives the Recommendations V. The last chapter has attached questionnaire in an annexure, which was prepared in order to get the information from customers and retailers followed by bibliography.
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INDEX
SRNO. TOPICS CHAPTER I ABOUT INDUSTRY, CONSUMER BEHAVIOUR & VODAFONE CHAPTER II 2. RESEARCH METHODOLOGY 3. CHAPTER III 30-51 DATA ANALYSIS CHAPTER IV 4. FINDINGS AND RECOMMENDATIONS CHAPTER V 5. ANNEXURE AND BIBLIOGRAPHY 73-78 52-72 27-29 PAGE NO

1.

06 - 26

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CHAPTER 1 ABOUT INDUSTRY, ABOUT CONSUMER BEHAVIOUR, ABOUT GUWAHATI & ABOUT VODAFONE

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TELECOMMUNICATIONS
Telecommunication is the transmission of messages, over significant distances, for the purpose of communication. In earlier times, telecommunications involved the use of visual signals, such as smoke, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded drumbeats, lung-blown horns, or sent by loud whistles, for example.

In the modern age of electricity and electronics, telecommunications has typically involved the use of electric means such as the telegraph, the telephone, and the teletype, the use of microwave communications, the use of fiber optics and their associated electronics, and/or the use of the Internet.

Telecommunications play an important role in the world economy and the worldwide telecommunication industry's revenue was estimated to be $3.85 trillion in 2008.The service revenue of the global telecommunications industry was estimated to be $1.7 trillion in 2008, and is expected to touch $2.7 trillion by 2013.

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MODERN OPERATIONS
TELEPHONE

In an analog telephone network, the caller is connected to the person he wants to talk to by switches at various telephone exchanges. The switches form an electrical connection between the two users and the setting of these switches is determined electronically when the caller dials the number. Once the connection is made, the caller's voice is transformed to an electrical signal using a small microphone in the caller's handset. This electrical signal is then sent through the network to the user at the other end where it is transformed back into sound by a small speaker in that person's handset. There is a separate electrical connection that works in reverse, allowing the users to converse.

The fixed-line telephones in most residential homes are analog ² that is, the speaker's voice directly determines the signal's voltage. Although short-distance calls may be handled from endto-end as analog signals, increasingly telephone service providers are transparently converting the signals to digital for transmission before converting them back to analog for reception. The advantage of this is that digitized voice data can travel side-by-side with data from the Internet and can be perfectly reproduced in long distance communication (as opposed to analog signals that are inevitably impacted by noise).

MOBILE TELEPHONES The Mobile telecommunications system in India is the second largest in the world and it was thrown open to private players in the 1990s. The country is divided into multiple zones, called circles (roughly along state boundaries). Government and several private players run local and

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long distance telephone services. Competition has caused prices to drop and calls across India are one of the cheapest in the world. The rates are supposed to go down further with new measures to be taken by the Information Ministry. The mobile service has seen phenomenal growth since 2000. India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The dominant players are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL. There are many smaller players, with operations in only a few states. International roaming agreements exist between most operators and many foreign carriers.

RADIO AND TELEVISION

In a TV, the central high-powered broadcast tower transmits a high-frequency electromagnetic wave to numerous low-powered receivers. The high-frequency wave sent by the tower is modulated with a signal containing visual or audio information. The receiver is then tuned so as to pick up the high-frequency wave and a demodulator is used to retrieve the signal containing the visual or audio information. The broadcast signal can be either analog (signal is varied continuously with respect to the information) or digital (information is encoded as a set of discrete values).

For analog radio, the switch to digital radio is made more difficult by the fact that analog receivers are sold at a small fraction of the price of digital receivers. The choice of modulation for analog radio is typically between amplitude modulation (AM) or frequency modulation (FM). To achieve stereo playback, an amplitude modulated subcarrier is used for stereo FM.

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THE INTERNET

The Internet is a worldwide network of computers and computer networks that can communicate with each other using the Internet Protocol. Any computer on the Internet has a unique IP address that can be used by other computers to route information to it. Hence, any computer on the Internet can send a message to any other computer using its IP address. These messages carry with them the originating computer's IP address allowing for two-way communication. The Internet is thus an exchange of messages between computers.

LOCAL AREA NETWORKS

Despite the growth of the Internet, the characteristics of local area networks (computer networks that do not run beyond a few kilometres) remain distinct. This is because networks on this scale do not require all the features associated with larger networks and are often more cost-effective and efficient without them.

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TELECOM INDUSTRY
INTRODUCTION The Indian telecommunication industry is one of the world's fastest growing industry, with 653.92 million telephone (landlines and mobile) subscribers and 617.53 million mobile phone connections as of May 2010 It is also the second largest telecommunication network in the world in terms of number of wireless connections after China. The Indian Mobile subscriber base has increased in size by a factor of more than one-hundred since 2001 when the number of subscribers in the country was approximately 5 million to 617.53 million in May 2010.

As the fastest growing telecommunications industry in the world, it is projected that India will have 1.159 billion mobile subscribers by 2013. The wireless technologies currently in use Indian Telecom Industry are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). Telecom Industry in India is regulated by 'Telecom Regulatory Authority of India' (TRAI). It has earned good reputation for transparency and competence.

The number of telephone subscribers in India increased to 653.92 Million at the end of May2010 from 638.05 Million in April-2010, thereby registering a growth rate of 2.49%. With this, the overall Tele-density in India reaches 55.38.

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The main members of the body are: 

             

Aircel Bharti Airtel Loop Mobile Vodafone (Earlier Hutch) Uninor Idea Cellular Reliance Sistema STel Tata HFCL MTLN BSNL ETISALAT/ALLIANZ Videocon

The 'Indian Telecom Industry' services are not confined to basic telephone but it also extends to internet, broadband (both wireless and fixed), cable TV, SMS, IPTV, soft switches etc. 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.  Huge initial investments.  Limited spectrum availability and interconnection charges between the private and state operators.

Indian Telecom Industry is currently expected to contribute nearly 1% to India's GDP which is heartening and estimated to grow further and brighten the scenario of Indian Telecom Industry.
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IMPORTANT DEVELOPEMENTS  1902 - First wireless telegraph station established between Sagar Islands and Sandheads.  1907 - First Central Battery of telephones introduced in Kanpur.  1913-1914 - First Automatic Exchange installed in Shimla.  23 July 1927 - Radio-telegraph system between the UK and India, with beam stations at Khadki and Daund, inaugurated by Lord Irwin by exchanging greetings with the King of England.  1933 - Radiotelephone system inaugurated between the UK and India.  1953 - 12 channel carrier system introduced.  1960 - First subscriber trunk dialing route commissioned between Kanpur and Lucknow.  1975 - First PCM system commissioned between Mumbai City and Andheri telephone exchanges.  1976 - First digital microwave junction introduced.  1979 - First optical fibre system for local junction commissioned at Pune.  1980 - First satellite earth station for domestic communications established at Secunderabad, A.P..  1983 - First analog Stored Program Control exchange for trunk lines commissioned at Mumbai.  1984 - C-DOT established for indigenous development and production of digital exchanges.  1985 - First mobile telephone service started on non-commercial basis in Delhi.
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MODERN GROWTH A large population, low telephony penetration levels, and a rise in consumers' income and spending owing to strong economic growth have helped make India the fastest-growing telecom market in the world. The first operator is the state-owned incumbent BSNL. BSNL was created by corporatization of the erstwhile DTS (Department of Telecommunication Services), a government unit responsible for provision of telephony services. Subsequently, after the telecommunication policies were revised to allow private operators, companies such as Vodafone, Bharti Airtel, Tata Indicom, Idea Cellular, Aircel and Loop Mobile have entered the space. In 2009-10, rural India outpaced urban India in mobile growth rate. Bharti Airtel now is the largest telecom company in India.

India is divided into 22 telecom circles. They are listed below: Andhra Pradesh 
                   Bihar & Jharkhand Chennai Delhi Gujarat & Daman & Diu Haryana Himachal Pradesh Jammu and Kashmir Karnataka Kerala & Lakshadweep Kolkata Madhya Pradesh excluding Mumbai & Chhattisgarh Maharashtra & Goa Mumbai North Eastern States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, & Tripura) Orissa Punjab Tamil Nadu excluding Chennai & Puducherry Eastern Uttar Pradesh Western Uttar Pradesh & Uttarakhand West Bengal excluding Kolkata, Andaman & Nicobar Islands & Sikkim 14

The breakup of wireless subscriber base in India as of May 2010 is given below

OPERATORS

TOTAL SUBSCRIBERS 40079533

AIRCEL 10122 ETISALAT/ALLIANZ 2911685 LOOP 71687210 BSNL 1394543 VIDEOCON 106347368 VODAONE 4636043 SISTEMA 66727402 IDEA 5012929 UNITECH 133619705 AIRTEL 520820 HFCL 70208244 TATA 1233247 Stel 107972822 RELIANCE 5166654 MTNL 617528327 TOTAL

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Following is a graphical representation of the MARKET SHARE of INDIAN TELECOM INDUSTRY as on 31 May, 2010 ±

Stel 0.20%

RELIANCE 17.48%

MTNL 0.84% AIRCEL 6.49%

ETISALAT/ALLIANZ 0.00%

LOOP 0.47%

BSNL 11.61% TATA 11.37% VIDEOCON 0.23%

HFCL 0.08%

VODAONE 17.22%

AIRTEL 21.64%

UNITECH 0.81%

IDEA 10.81%

SISTEMA 0.75%

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CONSUMER BEHAVIOUR
Consumer behaviour is the study of when, why, how, and where people do or do not buy product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.

Definition of Consumer Behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society."

Consumer behaviour is influenced by: Internal Influences like demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings and External Influences like culture, sub-culture, locality, royalty, ethnicity, family, social class, reference groups, lifestyle, and market mix factors.
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There are four main applications of consumer behavior: 

The most obvious is for marketing strategy ² i.e., for making better marketing campaigns.  A second application is public policy.  Then comes Social marketing. It involves getting ideas across to consumers rather than selling something.  As a final benefit, studying consumer behavior should make us better consumers.

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GUWAHATI
Guwahati (Assamese: , previously spelled Gauhati) is a major city in eastern

India, with a population of 818,809 (2001 census). The largest city in the North-East Region of India, it is considered by some to be the "gateway" to the region. Dispur, the capital of the Indian state of Assam, is located within the city. Guwahati is one of the most rapidly growing cities in India; during the past few decades it has experienced expansion and also a steep rise in population. According to a survey done by a UK media outlet, Guwahati is among the 100 fastest growing cities of the world, and is the 5th fastest growing among Indian cities. The city is situated between the southern bank of the Brahmaputra river and the foothills of the Shillong plateau, with LGB International Airport to the west, and the town of Narengi to the east. The city is gradually being expanded as North Guwahati to the northern bank of the Brahmaputra. The Guwahati Municipal Corporation, the city's local government, administers an area of 216 km , while the Guwahati Metropolitan Development Authority, the planning and development administers an area of 340 km . Guwahati is a major commercial and educational center of North-East India and is home to world class institutions such as the Indian Institute of Technology Guwahati. The city is also a major center for cultural activities and sports in the North Eastern region and for the administrative and political activities of Assam. The city is also an important hub for transportation in the North East Region. The name Guwahati is derived from two Assamese words: 'guwa' (areca nut) and 'haat' (market place). The name used to be spelled as Gowhatty (pre-colonial and colonial), standardized to

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Gauhati (colonial-British), which was then changed to the present form in the late 1980s to conform to the local pronunciation.

2.1 History View of part of Guwahati from the Sarania Hills, with the Brahmaputra river. The peaked Kamakhya Hills are to the left, the Saraighat bridge can be seen near the horizon, and on the right bank is North Guwahati. The Nehru stadium and the railway station are faintly visible, right bottom.

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Guwahati's myths and history go back several thousands of years. Although the date of the city's beginning is unknown, references in the epics, puranas, and other traditional histories, lead many to assume that it is one of the ancient cities of Asia. Demographics Guwahati is one of the most rapidly growing cities in India. The city's population grew from just two-hundred thousand in 1971 to more than five-hundred thousand in 1991, and in the census of 2001 the city's population was found to be 808,021. By 2011, it is estimated that Guwahati will boast more than a million residents. In 2001, males constituted 55 percent and females at 45 percent of Guwahati's residents. It was found that 10 percent of the population is under 6 years of age. Guwahati has an average literacy rate of 78 percent, with male literacy at 81 and female literacy at 74 percent. Economy As a river port, Guwahati has traditionally been an important administrative and trading center. Separate income estimates for the city are not yet available as city-level income estimation is not a traditional practice in India, and is not practiced in a systematic and continual manner. However, by looking at the agglomeration of activities and employment patterns it can be easily understandable that the city contributes a lion's share of the state's income. The major economic activities are trade and commerce, transportation and services. Guwahati is the most important trade hub in the North Eastern Region. It is a major wholesale distribution center, a marketing hub, and also a retail hub of the region. The Guwahati Tea Auction Centre is one of the largest in the world. As in other cities, 'mall culture' is slowly invading Guwahati.

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Manufacturing is also an important activity, although it is not comparable to those of India's rapidly growing industrial cities. The most important manufacturing industry in the city is the petroleum refinery of IOCL at Noonmati. The city is contains the headquarters or regional offices of several manufacturing and business establishments, e.g. Numaligarh Refinery Limited (NRL). Guwahati is also important for printing and publishing, as well as businesses related to electronic and print media. During the past two decades, businesses such as real estate development, finance, etc. have also intensified. Tourism and recreation, education, research, cultural activities, etc. are also slowly increasing and contributing to city's economy. Terrorism and Insurgency There is a fair amount of ethnic and religious diversity in Guwahati, but the city has been plagued by terrorism and insurgency in recent years. Several bombings were carried out in 2008 and 2009, claiming a total of at least 96 lives and wounding around 600 others. Terrorist groups believed to be active in and around Guwahati and Dispur include:  Harkat-ul-Jihad-al-Islami (HuJI)  Karbi Longri N.C. Hills Liberation Front (KLNLF)  United Liberation Front of Asom (ULFA)  National Democratic Front of Bodoland (NDFB)

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Vodafone Group is a British multinational mobile network operator headquartered in Newbury, England. Vodafone is the world's largest mobile telecommunication network company, based on revenue, and has a market value of about £71.2 billion (November 2009). It currently has operations in 31 countries and partner networks in a further 40 countries. Based on subscribers, it is the world's second largest mobile phone operator behind China Mobile and over Telefónica, with over 427 million subscribers in 31 markets across 5 continents as of 2009.

In India Vodafone have 106347368 subscribers as of May 31, 2010. Its market share in INDIA is 17.22 %.

The name Vodafone comes from voice data fone, chosen by the company to "reflect the provision of voice and data services over mobile phones"

Vodafone owns 45% of Verizon Wireless, the largest wireless telecommunications network in the United States, based on number of subscribers.

It is listed on the London Stock Exchange, where it is a constituent of the FTSE 100 index. Previously Vodafone was listed on New York Stock Exchange, but later it indented to transfer the listing of its American Depositary Receipts, each representing ten ordinary shares of its company, from NYSE to NASDAQ. However, it would keep listing its debt securities on NYSE

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Vodafone Essar, formerly known as Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is owned by Vodafone 67% and Essar Group 33%. It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel, and third largest in terms of customers.

On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, piping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion. The transaction closed on May 8, 2007. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros.

Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 licence areas. It is among the top three GSM mobile operators of India.

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ABOUT VODAFONE ESSAR

Type

Limited

Industry

Mobile telecommunications

Predecessor

Hutchison Essar

Founded

1994

Headquarters

Mumbai, Maharashtra, India

Mobile networks, Products Telecom services, Etc.

Vodafone Group (67%) Owner(s) Essar Group (33%)

Employees

10,000 ± March 31, 2009

Website

Vodafone India

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PRODUCTS 

VODAFONE POSTPAID 

VODAFONE PREPAID 

VODAFONE HANDYPHONE 

MAGIC BOX HANDSETS 

WORLD CALLING CARDS 

VODAFONE PCO 

iPHONE 3GS

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ORGANISATIONAL STRUCTURE

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CHAPTER 2 RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
Objective Main objective of the research was to ±  Study the perception of Vodafone¶s products and services by customers.  Mode of communication preferred by customers and trade vis-à-vis competition in relation to new product launch and various promotional offers. Research Type Descriptive research Method Used & Procedure By Survey Method & through Questionnaire. Coverage Guwahati Sampling The Sampling Technique used in this research in µNon-Probability Sampling¶ where µConvenience Sampling¶ is employed. y No sampling techniques were employed for arriving at a µSample Size¶. The target given by the company was 250 customers and 100 retailers. y For the research for Customers- 250 Questionnaires were distributed from which 233 duly and correctly filled Questionnaires were selected. For the research for Retailers 105 Questionnaires were distributed from which 103 duly and correctly filled Questionnaires were selected. y The Questionnaires were distributed to only those respondents who were using Prepaid Connections.
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y

Sources of Data The data is PRIMARY and SECONDARY in nature. The primary data is obtained from the people residing in Guwahati city.The secondary data is collected through different websites, Newspapers, Projects and Pamphlets. DIFFICULTIES AND LIMITATION This being a convenience sample, the analysis may not be a true picture of the target population. y y Prejudice of some of the respondents. Out of the 250 questionnaires distributed, a few of them were not completely filled or incorrectly filled, so 233 complete and duly filled questionnaires were selected. y In some cases contradictory answers were given which seemed to show that the respondents were trying to get over with the interview as soon as possible. EXPERIENCES The exercise provided me with the first-hand knowledge of how real life surveys were conducted by organisations involved in Market Research. y It made me realize that what I thought how the majority of the respondents would react to a particular statement need not be true in actual. y In some cases it was felt that when a respondent was confused as to a particular response, he or she usually responded with the same answer I hinted at.

y y

y

y

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y

The research made me believe that younger respondents were more enthusiastic towards the research than the elderly respondents and also in all cases women were more than happy to help with the exercise.

y

This exercise also made me realize that many a times a respondent did not understand some of the statements in the questionnaire the way I intended and they brought out a completely new meaning of the statement and thus the actual meaning had to be adequately explained.

CHAPTER 3 DATA ANALYSIS

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DATA ANALYSIS OF RETAILERS SURVEY

TYPE OF RECHARGES Type of Recharge PAPER EASY No of Respondents 42 61

Type of Recharge
EASY 59% PAPER 41%

PAPER EASY

Inference The above chart shows that 41% of the retailers prefer keeping PAPER recharge while 59 % prefer EASY recharge. The reason for prefering EASY recharge over PAPER recharge is that there is no mismatch of Stock when retailers keep EASY recharge.

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Chi Square Hypothesis  Hypothesis:  Ho: Paper recharge and e-recharge are liked equally by the retailers.  H1: Paper recharge and e-recharge are not liked equally by the retailers.

RESULTS:

Chi-square Calculated = 2.00 Chi-square Tabulated = 2.773 Since Chi-square calculated< Chi-square tabulated hence null hypothesis gets accepted. Inference: Both paper and e-recharge are liked equally by the retailers

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HIGHEST TOP UP SALE Service provider Vodafone Aircel Airtel BSNL Reliance Tata Indicom Idea No. of retail outlets 22 35 17 1 26 1 1

Highest Top Up Sale
35 35 30 25 20 15 10 5 0 26 22 17

No. of retail outlets 1 1 1

Inference From the above chart it is clearly seen that AIRCEL leads all the other network providers in case of TOP UP sales. RELIANCE is placed 2nd VODAFONE in 3rd position AIRTEL takes the 4th position. IDEA, BSNL and TATA INDICOM make up the rest of the Network Providers.

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HIGHEST SALE OF SMS PACKS Service No. of retail provider outlets Vodafone Idea Aircel BSNL Reliance Tata Indicom Airtel

27 2 29 1 25 1 18

Airtel 18% Tata Indicom 1%

No. of retail outlets

Vodafone 26% Idea 2%

Reliance 24%

Aircel 29 28%

BSNL 1% Vodafone Idea Aircel BSNL Reliance Tata Indicom Airtel

Inference Out of the 103 retail shops that were covered during the survey 29 % of the retailers say that AIRCEL is the highest seller of SMS packs. VODAFONE comes 2nd with 26% RELIANCE with 24% comes 3rd AIRTEL eats up 18% in the SMS market IDEA, BSNL and TATA INDICOM make up the rest of the 4 % together.

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Q4

Special Tariff Cards Service No. of retail provider outlets Vodafone Idea Aircel BSNL Reliance Tata Indicom Airtel

26 0 35 1 19 1 21

Special Tariff Cards
40 35 30 25 20 15 10 5 0

26 Vodafone

0 Idea

35 Aircel

1 BSNL

19 Reliance

1 Tata Indicom

21 Airtel

Series2

Inference AIRCEL Tariff Cards are the one¶s which sells the most. VODAFNE tariff Cards are the 2nd best AIRTEL comes 3rd RELIANCE comes 4th TATA INDICOM and BSNL take up 2 % between them.

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GPRS CARDS Service provider Vodafone Airtel Aircel Reliance Don¶t Sell

No. of retail outlets 25 12 30 15 21

Don t Sell 20%

GPRS Cards

Vodafone 24%

Reliance 15%

Airtel 12%

Aircel 29% Vodafone Airtel Aircel Reliance Don t Sell

Inference In the survey conducted among 103 retailers we have come to a conclusion that AIRCEL has the maximum sale of GPRS CARDS in 29 % of the stores. VODAFONE is the maximum selling GPRS CARD in 24% of the stores. AIRTEL with 12 % and RELIANCE with 15 % make up the rest. A staggering 20% say they don¶t sell GPRS CARDS.

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COMPANY PREFERENCE No. of retail Type outlets Website 1 USSD 3 Out Bound 28 Dial Any Other 2 Mode Radio 5 SMS 57 Newspaper 7

Company Preference
Newspaper 7% Website ,1% USSD 3% Out Bound Dial 27% Any Other Mode 2%

SMS 55%

Radio 5% Website Any Other Mode Newspaper USSD Radio Out Bound Dial SMS

Inference When asked about which Communication Mode the various Network Providers prefers, the Retailers were of the opinion that the various companies use SMS as the mode of communication. The survey showed that 55 % said it was SMS while 27 % said the companies prefer Out Bound Dial. Radio with 5%, Newspaper with 7%, USSD with 3 %, Website 1% and Other Modes take 2% in the opinion of retailers.
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Q7

RETAILER PREFERENCE No. of retail Type outlets Website USSD Out Bound Dial Any Other Mode Radio SMS Newspaper

2 1 21 6 8 53 12

Retailer Preference
Newspaper 12% Website 2% USSD 1% Out Bound Dial 20%

SMS 51%

Any Other Mode 6%

Radio 8% Website Any Other Mode Newspaper USSD Radio Out Bound Dial SMS

Inference When asked about which Communication Mode the various Retailers prefers, the Retailers were of the opinion that the companies should use SMS as the mode of communication. The survey showed that 51 % said it was SMS while Out Bound Dial was preferred by 20%. Radio with 8%, Newspaper with 12%, USSD with 1 %, Website 2% and Other Modes take 6% in the opinion of retailers.

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Q8

TIMING PREFERENCE Preference Time Morning Afternoon Evening Night No. of retail outlets 37 31 23 12

Preference Time
40 35 30 23 25 20 15 10 5 0 Morning Afternoon Evening Night 12 No. of retail outlets 37 31

Inference The Retailers would like to receive the Promotional offers through their preferred mode mostly during Morning (36%) & Afternoon (30%). 22% even think Evening would be a good time to receive such promotional offer news. But only 12% think that Night time is appropriate time to receive such information.

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DATA ANALYSIS OF USERS/CUSTOMERS SURVEY
AGE GROUP
age less than 15 15 - 20 20 - 25 25 - 30 above 30 no of respondents 22 37 87 52 35

above 30 15%

Age Group
less than 15 10% 15 - 20 16% less than 15 15 - 20 20 - 25 25 - 30

25 - 30 22%

above 30

20 - 25 37%

Inference The survey was conducted with 233 Users of various network providers. The age group that was covered included: Less than 15 years ---- 10 % 15 years - 20 years ---- 16 % 20 years - 25 years ---- 37 % 25 years ± 30 years ---- 22 % Above 30 years ---- 15 %

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GENDER COMPOSITION OF RESPONDENTS
Gender MALE FEMALE No of Respondents 141 92

FEMALE 39%

MALE FEMALE

MALE 61%

Inference The survey covered total of 233 people. Out of that 61% were MALE The rest of the 39 % were FEMALE.

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NETWORK PROVIDER OF THE RESPONDENTS NETWORK PROVIDER AIRCEL AIRTEL RELIANCE IDEA TATA INDICOM BSNL VODAONE No of respondents 75 47 49 3 4 3 52

NETWORK PROVIDER
80 70 60 50 40 30 20 10 0 75 49 52 47

No of respondents 3 AIRCEL AIRTEL RELIANCE IDEA 4 TATA INDICOM 3 BSNL VODAONE

Inference The survey covered users from various network providers which is given below AIRCEL VODAFONE AIRTEL RELIANCE ---------- 75 (33%) ---------- 52 (22%) ---------- 47 (20%) ---------- 49 (21%)

TATA INDICOM ---------- 4 (2%) IDEA BSNL ---------- 3 (1%) ---------- 3 (1%)

43

REASONS FOR SELECTING THE VARIOUS NETWORK PROVIDERS REASONS Network Product Offerings Pricing Availability of Recharges Customer Service Other Reason No of respondents 107 28 62 17 6 13

Reasons
Other Reason Customer Service Availability of Recharges Pricing Product Offerings Network 0 13 6 17 62 28 107 20 40 60 80 100 120 No of respondents

Inference USERS state that they use the current network providers for the following reasons ± 107 out of 233 (46%) users, state that they use their network providers because of good NETWORK. 62 out of 233 users (27%), choose PRICING as their reason for sticking to their network providers. 12% say they like PRODUCT OFFERINGS of their network provider. 7% choose Availability of Recharges at a store near them (distribution) as a reason. 3% state that CUSTOMER SERVICE of their network provider is the reason for choosing them. 6% choose OTHER REASONS like Celebrities, Advertisements, and Relationships as their reasons.

44

COMPANY PREFERENCE AND MODE OF COMMUNICATION Type SMS USSD Out Bound Dial Newspaper Radio Website Any Other Mode No of respondents 98 7 75 20 13 9 11

Any Other Mode 5%Website 4% Radio 5% Newspaper 9%

Company Preference
SMS SMS 42% USSD Out Bound Dial Newspaper Radio Website

Out Bound Dial 32%

USSD 3%

Any Other Mode

Inference When asked about which Communication Mode the various Network Providers prefers, the USERS were of the opinion that the various companies use SMS as the mode of communication. The survey showed that 42 % said it was SMS While 32 % said the companies prefer Out Bound Dial. Radio with 5%, Newspaper with 9%, USSD with 3 %, Website with 4% and, Other Modes like Billboards, Hoardings, and Television Ads take 5% in the opinion of the users.

45

CUSTOMER PREFERENCE AND MODE OF COMMUNICATION Type SMS USSD Out Bound Dial Newspaper Radio Website Any Other Mode No of respondents 66 14 29 37 18 23 46

Customer Preference
Any Other Mode 20% Website 10% Radio 8% Newspaper 16%

SMS 28% USSD 6% Out Bound Dial 12%

SMS Newspaper

USSD Radio

Out Bound Dial Website

Inference When asked about which Communication Mode the USERS prefer, the USERS were of the opinion that the various companies should use a mixture of SMS, Newspapers and Various Other Modes as the mode of communication. The survey showed that 28 % said it was SMS While 12 % said the companies prefer Out Bound Dial which shows it is not liked by customers. USSD with 6 %, shows customers can be targeted with this medium also. Radio with 8%, Newspaper with 16%, Website with 10% is other notable medium that USERS can be targeted with. Other Modes like Leaflets and Television Ads take 20% in the opinion of the users which is a significant chunk and companies should use these mediums also.

46

TIMING PREFERENCE BY CUSTOMERS Preference Time Morning Afternoon Evening Night No. of customers 47 72 89 25

Timing Preference
100 80 60 40 20 0 Morning Afternoon Evening Night 47 25 Timing Preference No. of customers 72 89

Inference The survey shows us that the USERS would prefer EVENING as the best time to inform them about various promotional offers. 38% of the people choose EVENING because that time is leisure time. 31 % feel that AFTERNOON is the best time to receive promo offers because there is less work. 20% feel MORNING is a good time to receive promo news but others feel they are busy in the morning and SMS and Outbound Calls tend to distract them and irritate them during work hours. 11% think NIGHT is a good option to receive promo news but others feel that night time is for rest and they don¶t want to get disturbed by anything.

47

MONTHLY EXPENDITURE COMPOSTITION Monthly Expenditure less than 100 100-200 200-400 400-600 600-800 above 800 No of respondents 18 29 76 51 39 20

above 800 8% 600-800 17% 400-600 22%

Monthly Expenditure
100-200 12%

less than 100 8%

200-400 33%

less than 100

100-200

200-400

400-600

600-800

above 800

Inference Most of the USERS fall in the range from Rs 200 to Rs 800 where 72 % of the respondents are categorized. 8 % people in the survey undergone fall in the slot whose expenditure is less than Rs 100 per month. 12% people fall in the range of Rs 100 ±Rs 200 expenditure per month. 33 % people are in the range of Rs 200- Rs 400 expenditure per month. 22 % people fall in the range of Rs 400- Rs 600 expenditure per month. 17 % people are in the range of Rs 600- Rs 800 expenditure per month. 8 % people fall in the range of Rs 800 and above expenditure per month.

48

NETWORK PROVIDER AND GENDER WISE COMPOSITION
NETWORK PROVIDER AIRCEL AIRTEL RELIANCE IDEA TATA INDICOM BSNL VODAONE No of respondents Male 75 47 49 3 4 3 52 Female 41 27 33 3 3 3 31 34 20 16 0 1 0 21

45 40 35 30 25 20 15 10 5 0

41 34 27 20 16 21 Male Female 3 0 AIRCEL AIRTEL RELIANCE IDEA 3 1 TATA INDICOM 3 0 BSNL VODAONE 33 31

Inference Among AIRCEL customers, 55% are males and 45 % are females. Among AIRTEL customers, 57% are males and 43 % are females. Among RELIANCE customers, 67% are males and 33% are females. Among VODAFONE customers, 60% are males and 40 % are females. Among IDEA customers, 100% are males. Among TATA INDICOM customers, 75% are males and 25 % are females. Among BSNL customers, 100% are males.

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NETWORK PROVIDER AND PREFERENCE TIME OF CUSTOMERS
NETWORK PROVIDER AIRCEL AIRTEL RELIANCE IDEA TATA INDICOM BSNL VODAONE Morning 17 9 8 0 1 0 12 Afternoon 29 20 13 0 1 1 8 Evening 25 10 22 3 2 2 25 Night 4 8 6 0 0 0 7

29 30 25 25 20 20 15 10 4 5 00 0 AIRCEL AIRTEL RELIANCE IDEA TATA INDICOM BSNL VODAONE 9 10 8 8 6 3 0 1120 2 01 0 17 13 12 8 7 Morning Afternoon Evening Night 22 25

Inference Out of the people who want promo news during EVENING, Aircel, Vodafone, Reliance forms 81% of that lot. Out of the people who opted for AFTERNOON, Aircel, Airtel and Reliance forms 86% of the lot. Aircel Customers want the promo news to be send during afternoon Airtel Customers want the promo news to be send during afternoon Reliance Customers want the promo news to be send during evening

50

NETWORK PROVIDER AND REASONS FOR SELECTING THE NETWORK
NETWORK PROVIDER AIRCEL AIRTEL RELIANCE IDEA TATA INDICOM BSNL VODAONE Product Offerings 6 5 9 1 2 0 5 Availability of Recharges 5 3 4 0 0 0 5 Customer Other Service Reason 3 1 0 0 0 1 1

Network 36 23 19 0 2 1 26

Pricing 18 13 15 2 0 1 13

7 2 2 0 0 0 2

Network Availability of Recharges 40 35 30 25 20 15 10 5 0 36

Pricing Customer Service

Product Offerings Other Reason

26 23 18 13 65 7 3 5 3 2 1 19 15 9 4 0 55 2 0 21 000 2 2 0 000 TATA INDICOM 110010 BSNL 12 VODAONE 13

AIRCEL

AIRTEL

RELIANCE

IDEA

Inference The above chart shows why different network providers are liked by different users. Aircel is used by USERS because of the good quality of NETWORK it provides. Aircel is also liked because of its PRICING. 48% of Aircel users like their network while 24% like their pricing. Even the Airtel, Reliance and Vodafone users mainly use those services because of NETWORK and PRICING. However Reliance seems to have lost ground on NETWORK as it is the oldest among the TOP 4 but has the lowest number of users using their connections for Reliance Network.

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NETWORK PROVIDER AND MODE OF COMMUNICATION
NETWORK PROVIDER AIRCEL IDEA RELIANCE BSNL VODAONE TATA INDICOM AIRTEL Out Bound Dial Newspaper 19 9 0 0 1 7 1 1 6 11 0 1 2 8 Any Other Mode 14 1 10 0 11 1 9

SMS USSD 23 1 2 0 14 6 0 0 13 3 1 0 13 4

Radio Website 3 6 0 0 4 7 0 1 4 4 0 1 7 4

70 60 50 40 30 20 10 0 SMS USSD Out Bound Dial RELIANCE Radio Newspaper Website Any Other Mode AIRTEL

AIRCEL

IDEA

BSNL

VODAONE

TATA INDICOM

Inference Sms Mode is mostly preferred by the Aircel Users. Reliance, Vodafone and Airtel users are way behind when liking for SMS mode is taken into account. USSD Mode is mostly preferred by Reliance Users followed by Airtel and Vodafone. Aircel Users don¶t seem interested in USSD. Out Bound Dial is preferred by only AIRCEL customers. Newspapers as a medium is liked mostly by Vodafone users followed by Aircel and Reliance Users. Other Modes like Celebrity Endorsements, Billboards, Leaflets are mostly welcomed by Aircel, Vodafone and Reliance users.

52

MONTHLY EXPENDITURE and GENDER WISE COMPOSITION
Monthly Expenditure less than 100 100-200 200-400 400-600 600-800 above 800

Female 10 19 33 20 6 4

Male 8 10 43 31 33 16

50 45 40 35 30 25 20 15 10 5 0

43 33 31 20 16 6 4 33

19 8 10 10

Male Female

less than 100-200 200-400 400-600 600-800 100

above 800

Inference It is seen that Females are more in the slots less than 100 and 100-200. The graph shows that number of females is more in comparison to males when the expenditures are low. The number of Males is more when the amount of monthly expenditure is more. The number of males and females is highest in the range 200-400. The number of males and females in the range of 400-600 is also significant.

53

QUALITY OF SERVICE OF VODAFONE

No of Parameters Respondents Poor 6 Average 10 Good 11 Very Good 14 Excellent 11

21%

Quality of Service of Vodafone
12% 19% Poor Average Good Very Good Excellent

27% 21%

Inference It is seen that quality of Vodafone is more than average. Around 69 % of VODAFONE CUSTOMERS prefer the quality of service and the respondents marked their responses from good to excellent. Only 12 % say that service quality is poor.

54

Hypothesis Testing: One Sample Z test (Quality of Service of Vodafone) Here customers were asked to indicate the quality of service of Vodafone on a five point scale where 1 indicated very dissatisfied and 5 indicated very satissfied. Suppose that the customer feel the quality of services of Vodafone are average. Let formulate the null Hypothesis the mean is equal to 2.0. Null Hypothesis: Ho- mean=2.0 Alternative Hypothesis: H1- mean is not equal to 2.0. Use "z-distribution" table to estimate critical value and Alpha=.05, Zcv = 1.96 The mean score for 52 respondents is 3.27. In this case Test Statistic: Critical valueLower limit=1.644 Upper Limit=2.356 Based on the survey mean is 3.27.In this case the sample mean is contained in the region of rejection. The results indicate that customers believe that services of Vodafone are very good.

55

CHAPTER 4 FINDINGS & RECOMMENDATIONS

56

FINDINGS 
AIRCEL is the market leader in GUWAHATI. From the Survey conducted it was found out that AIRCEL is the Leader when numbers of users are taken into consideration.  The main reason for selecting a Network Provider is the QUALITY OF THE NETWORK and the PRICING of recharge packs and other packs.  USERS want to receive promotional offer alerts or information through SMS and TV Ads, Hoardings and Leaflets. Although 12 % customers opted for Out Bound Calls but most of the rest 88 % suggested that they don¶t like Out Bound Calls.  Even while receiving info through SMS or other modes USERS have shown their preference to receive such news during Evenings and Late Afternoon.  Most of the Users(33%) confronted during the survey spend around Rs 200-400 monthly while 22 % spend around Rs 400-600 per month. 17 % users spend around Rs 600-800 monthly. The survey covered mostly High End Users.  On an average people spend around Rs 150 ± Rs 450 per month.  Males have a higher tendency to spend more on Mobile Recharges and other VAS per month.  Females outnumber Males in the lower range monthly expenditures.  AIRCEL and AIRTEL Users prefer receiving info regarding Promotions during Late Afternoons.  RELIANCE and VODAFONE Users prefer receiving information regarding Promotions during Evenings.

57 

AIRCEL and RELIANCE being the oldest player in Guwahati seem to follow different trend. AIRCEL because of its excellent Network Coverage seems to be gaining more users whereas RELIANCE because of its Poor Network Coverage is losing on its existing users. 

VODAFONE users are interested in mode of communication such as TV ads, hoardings, billboards, etc more than any other users of their competitors. 

SMS medium was the most likely accepted mode of communication by the users. 

USERS also wanted Pamphlets and Leaflets to be distributed to them whenever new pricing scheme is adopted. 

Retailers prefer Easy recharge more than Paper recharges. 

Among TOP Ups VODAFONE¶s Rs 10 & Rs 50 are mostly used. AIRCEL¶s Rs 10, Rs 50 & Rs 110 are most selling ones. For RELIANCE Rs 25, Rs 50, Rs 125 is most selling. For AIRTEL Rs 10, Rs 30, Rs 111 is most selling TOP UPs 

Among SMS Packs AIRCEL has the highest sale with Rs 9 and Rs 33 being sold the most. For VODAFONE it is Rs 34. For RELIANCE it is RS 19. AIRTEL¶s SMS pack of RS 34 is sold the most.

58 

Among Bonus Cards AIRCEL¶s Rs 20 and Rs 48 packs are sold the most. For RELIANCE Rs 14 & Rs 40. For AIRTEL it is RS 21. For VODAFONE it is Rs 29. 

Among GPRS Packs AIRCEL¶s Rs 98, Vodafone¶s Rs 98, RELIANCE¶s Rs 81 and AIRTEL¶s RS 98 are the most selling. Out of these Rs 98 of Vodafone has a great market share in GPRS Packs. 

MORE than 50% of the retailers are happy to receive Promotional news through SMS alerts because it is convenient for them during rush hours also to read a SMS and get to know about Offers. 

Most of the Retailers are happy to receive Promotional offer news in the Morning and Afternoon because it is during their Business Hours and it can give them an edge to provide customer with better facilities and information.

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COMPETITOR¶s SHCEMES
RELIANCE
Scheme Amount Rs 19 Features Local + National sms@ 1p/sms Validity 30 days Auto -Renewal Daily as long as subscriber has sufficient a/c balance(@ Rs1/day) 30 days

SMS

Daily Pack 14 Rs 39

500 Local + National sms/day + Rs 10.69 talktime 500 Local + National sms/day

GPRS

Rs 81

upto 2GB browsing free

7days

Bonus Packs

Rs 14 Rs 12 Rs 9 Rs 24 Rs 40 Rs 44 Rs 80

all calls 1 p/sec;Sms 50p/sms all calls ,sms @ 50p all calls Rs 1/3 min, Sms 50 p /sms 100 mins free (local reliance to reliance) 200 mins(local reliance to reliance) 100 mins free (all local calls) 200 mins(all local calls)

30 days 30 days 30 days 15 days 30 days 30 days 30 days

Rs 250

2000 mins( local reliance to reliance)

30 days

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RELIANCE

Top UP

MRP

Core Talktime

Promo Talktime

Promo Validity

Available ON

0 Rs 10 Rs 25 Rs 48 Rs 7.07 Rs 20.67 Rs 41.52 0 0 10 mins rel to rel free(valid for 3 nights) Rs 7.14 Rs 9.00 Rs 11.34 Rs 12.27 Rs 31.21 Rs 11.67 Rs 15.41 Rs 40.68 Rs 61.01 75 min (RTL to RTL) Rs 39.35 Rs 148.69 Rs 95.38 N/A N/A N/A Paper/Easy Paper/Easy Paper

Tariff All local calls All STD calls

Rs 50 Rs 55 Rs 75 Rs 100 Rs 110 Rs 120 Rs 125 Rs 165 Rs 200 Rs 300 Rs 399 Rs 400 Rs 500 Rs 1000 per minute Rs 0.50 Rs 1.50

Rs 43.33 Rs 47.86 Rs 66.00 Rs 88.66 Rs 97.73 Rs 108.79 Rs 113.33 Rs 149.59 Rs 181.32 Rs 271.99 Rs 399.00 Rs 360.65 Rs 451.31 Rs 904.62

N/A 7 days 7 days 7 days 7 days 7 days 7 days 7 days 7 days 7 days 30 days 7 days 7 days 7 days

Easy Paper/Easy Easy Paper/Easy Easy Easy Paper/Easy Paper/Easy Easy Easy Paper Easy Easy Easy

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AIRCEL
Scheme SMS Amount Rs 3 Rs 9 Rs 33 GPRS Rs 14 Rs 98 Bonus Packs upto 2GB browsing free to aircel - 0.35 p/min to others - 0.50 p/min pay per second Rs 55 to aircel - 0.35 p/min to others - 0.50 p/min to aircel - 0.50 p/min to others - 0.50 p/min to aircel 0.09(11pm - 6 am);0.19(6am4pm);0.99(4pm11pm) to others - 0.99 to aircel 0.75(1st min);0.50(2nd min);0.25(3rd min) to others 0.75(1st min);0.50(2nd min);0.25(3rd min) aircel - local & std - 0.50 others - 0.60 Features 100 100 500 daily free Validity 2 days 7 days 30 days 3 days 30 days Top Up MRP Rs 10 Rs 25 Rs 50 Rs 110 Rs 220 Talktime Rs 7.07 Rs 20.67 Rs 43.33 Rs 97.73 Rs 197.46

Rs 5

2 days

Rs20 30 days 30 days

Rs 54

30 days

Rs 48

30 days

Rs 40

30 days

Rs 18

30 days

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AIRTEL
Scheme SMS Amount Rs 9 Rs 34 Rs 98 Rs22 Rs 21 Bonus Packs pay per second airtel to airtel - 0.40 others - 0.50 std-1.50 Rs 17 Scheme Top UP Amount Rs 5 Rs 10 Rs 30 Rs 60 Rs 100 Rs 111 Rs 222 Rs 255 Rs 365 Rs 475 Rs 555 airtel - std & local 0.50 others - 0.60 30 days 30 days 30 days Features 50 300 sms/day upto 2 GB browsing Validity 7 days 30 days 30 days 3 days

GPRS

Rs 39

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IDEA
Scheme SMS Amount Rs 16 Rs 34 Bonus Packs Top Up Rs 13 MRP Rs 10 Rs 25 Rs 50 Rs 100 Rs 111 Rs 222 Rs 333 per second 1p/sec Features 200 local sms only 500/daily, local + national All local calls - 0.40p & STD - 0.50P Talktime Rs 7.07 Rs 20.67 Rs 43.33 RS 88.66 Rs 98.63 Rs 199.27 Rs 299.90 per minute 0.4 Validity 15 days 30 days 30 days Recharge Type Paper Paper Paper Easy Easy Easy Easy

Tariff All local calls

All STD calls

1p/sec

0.6

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TATA INDICOM

Tariff Plan Name local 10 mins - Re 1;daily rental Re 1 charged Pay per Call

Features

50 p/sms; local + national STD 10 mins - Rs 3;daily rental Re 1 charged Local 25p/min;local upto 5 mins - Re 1,daily rental Re 1

Pay per Call Flexi STD 25p/min;Std upto 5 mins Rs 2,daily rental Re 1

SMS 50p/SMS; local + national

Pay Per Second

1st 3 min - 1p/sec,Next 3 mins free this continues in a loop.Rs 3.60 charged in 12 mins ,if not disconnected then from 13th min onward Re 1 will be chargerd per minute

SMS 50p/SMS; local + national

TATA INDICOM
Scheme SMS Amount Rs 15 Rs 30 Rs 55 MRP Rs 10 Rs 25 Rs 50 Rs 100 Features 75 sms 350 sms 1500 sms Talk Time Rs 6.5 Rs21.5 Rs 46.5 Rs 96.5 Validity 15 days 30 days 30 days Validity 1 month 1 month 1 month 1 month

Top UP

65

BSNL
Scheme MRP TOP UP Rs 22 Rs 55 Rs 110 Rs 221 Rs 550 Rs 10 to Rs 1000 Scheme Amount Rs 20 SMS Rs 50 Bonus Cards Rs 12 Rs 49 Talktime Rs 18 Rs 50 Rs 100 Rs 200 Rs 500(currently Rs 800 special scheme) depends on denomination Features 150 sms local +national 400 sms local +national pay per second 49 p /min, local, STD,SMS, all networks BSNL local 25 p, Others 60 p; 11 pm to 6 am BSNL local 20 p BSNL local free 24 hours Recharge Type Paper Paper Paper Paper Paper EASY Validity 30 days 30 days 3 months 3 months

Rs 100 Rs 300

3 months 3 months

Rs 499

local 24 hours free, Std 19 hours free(excluding 4 pm - 9 pm)

3 months

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SWOT ANALYSIS

a) AIRTEL

STRENGTHS Voice Clarity Customer Service Brand Preference

WEAKNESS Tariff Plans Expensive Network

OPPORTUNITIES Can increase market share Can earn more revenue Can increase customer satisfaction level

THREATS New entrant µIDEA¶

67

b) AIRCEL

STRENGTHS Network Coverage Network Quality Customer Service Tariff Plans

WEAKNESS Except being leaders Assam and Chennai, they are almost non-existent in other circles

OPPORTUNITIES Earn more revenue as it is not having that great revenue. Capture increase share in national market. Increase customer satisfaction level.

THREATS Increasing popularity of µVODAFONE¶ Entry of IDEA into market

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c) BSNL

STRENGTHS Voice Clarity. Brand Preference. Network Coverage.

WEAKNESS Customer Service. Customer perception that being a government organisation it won¶t be able to provide VALUE FOR MONEY.

OPPORTUNITIES Increase market share. Earn more revenue. Being a government body it should take initiative and bring out new pricing schemes and give competition to other networks.

THREATS All the existing private operators

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d) RELIANCE

STRENGTHS Tariff Plans Network Coverage

WEAKNESS Voice Clarity Brand Value Customer Service

OPPORTUNITIES To keep onto the existing customers. To improve their network reach and coverage.

THREATS VODAFONE¶s gaining popularity and better quality of network. Entry of IDEA into the market.

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e) TATA INDICOM

STRENGTHS Voice Clarity CDMA Technology Network Quality Tariff Plans.

WEAKNESS Brand Value. In ASSAM people are more oriented into using GSM connection and are not very attracted to use CDMA phones when CELL PHONES are launched every now and then with latest technology

OPPORTUNITIES Increase market share. Attract more customers. Can make an entry into ASSAM with TATA DOCOMO (GSM).

THREATS New entrant µIDEA¶.

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f) VODAFONE

STRENGTHS Voice Clarity Network Quality Brand Value Tariff Plans Customer Service Distribution

WEAKNESS Network Coverage Most of Vodafone¶s TV ads depend on ZOOZOO¶s. The day zoo-zoos are not welcomed Vodafone will have to restrategize its marketing activities

OPPORTUNITIES Increase market share Earn more revenue Can take over as a leader in Guwahati in 2 years time through better network coverage

THREATS Existence of AIRTEL and AIRCEL as the oldest player in the industry. Entry of IDEA into the market.

72

g) IDEA

STRENGTHS Brand Value Tariff Plans Distribution

WEAKNESS Network Coverage Voice Clarity

OPPORTUNITIES Capture profitable market share Earn huge revenue

THREATS OLD PLAYERS EXISTING IN THE MARKET

73

RECOMMENDATIONS 
Availability of various types of recharge denominations both paper e-recharge at all the time. 

Quality Network Service should be the main aim especially at peak hours as more than that 50% of the customers opt for a particular network provider because they want good network. 

Attractive offers for Students and Youngsters as comprises more than 80% of the total customers in prepaid. 

Better Co-Ordination with the Retailers as they are the most important link between customers and the company. Attractive Gifts and Rewards should be handed out to Star Performers where all the retailers of the city could be invited so that others are motivated to work for VODAFONE eagerly. 

SMS system as a tool to launch new promotional offers of the company. 

Customers should be targeted in the evenings with SMS while Retailers should be targeted during daytime. 

While sending SMS to customer a Greeting Note with their name or surname would make them feel more interested in the Offers. Eg. Dear Mr. Hitesh Rupani you have been selected for a Special Offer «««««««««««««««................................. 

If Vodafone plans to increase its Customer Base, it can distribute Free Sim Cards during Durga Puja and Diwali at places where there are large number of footfalls. DONA PLANET and BIG BAZAR are two places where this can be done. Also J14 opposite,
74

Commerce College and NEHRU PARK, opposite Cotton College and near Handique Girls College can be targeted. This scheme can be undertaken to target the Youth and College going students who flock these places in the evening. Also FREE Sim Card Connection does not mean it will be activated; to activate people must recharge with Rs 20 there itself. And with a good network which VODAFONE has the retention of these users should not be that difficult. Out the number of SIM card connections that can be sold even if minimum of 20% are retained it can increase customer base drastically. 

2011 Cricket World Cup will be held next year, if VODAFONE can give its customers some QUIZ based on previous World Cups or some other activity and provide attractive prizes may be it can help in creating a buzz among people. Also the rate of SMS for such quiz which is currently likely to be Rs 3/sms should be around Rs 0.50 /sms or Re 1/sms, so that more people can play such quiz. Also on buying Top Up of more than 100, wrist bands or other merchandise stuffs could be provided to support TEAM INDIA. 

Another Game based on SMS could be started during The 2011 World Cup. A customer needs to pick a player from a match that has to be played on a day and guess the runs he makes or wicket he takes during the match accordingly the customer gets benefitted by the runs his choice of player makes or wickets he takes. An amount of recharge will be updated into customers account depending on results. y y y y y y For 25 runs ± Rs 10 talktime For 50 runs or more but less than 100 ± Rs 10 talktime + 2days call from Vodafone to Vodafone free For 100 runs or more ± 3 days Vodafone to Vodafone call n Sms free For 2 wickets in a match - Rs 10 talktime For 3 wickets in a match - Rs 10 talktime + 2days call from Vodafone to Vodafone free For 5 wickets in a match - 3 days Vodafone to Vodafone call n Sms free

* A customer can choose only one player from his/her number from a match. * The runs guessed should be accurate or within a range of (plus/minus) 5 runs

75 

Instead of spending Lakhs on Print ads in Newspapers, when a new offer is to be launched, an alternative could be to make a Colourful Envelope (size should be such that it can contain a folded newspaper) and print the information on that envelope and put the newspaper inside that envelope. For this the hawker can be given some money so that he puts the newspapers in those envelopes and deliver it to people¶s doorstep. If such a promotional activity costs lesser than print ads than this may be given a try. This activity may catch people¶s eye easily and may attract people towards VODAFONE and its offers. 

Vodafone¶s distribution channel is well planned and sorted out and it has the right number of distributors to cover the number of retailers in the city and maintain good cordial relations with them. One symptom which was found in most of the retailers when asked about their distributor they didn¶t seem to know the name of their distributors and only when they would check the memos they would recognize the names of the distributor. At least something could be done so that the parties in the channel of distribution can remember each other. 

Vodafone¶s distribution channel can be more enhanced by providing their recharge facilities in PETROL PUMPS, where a customer who has a car or a bike generally stops once or twice a week. But this has to be kept in mind that the sentiments of current retailers are not hurt. 

CUSTOMER SERVICE can be enhanced by providing Special One-Time Dial Numbers, which directly puts the customer to customer care instead of dialing a number and then pressing 1 for HINDI, 2 for ENGLISH etc. 

Another method to improve CUSTOMER SERVICE is to call the customer 1-2 times a month on weekends during late afternoon & evenings to ask if the customer has any kind of problem regarding network or any kind of query or if they want any kind of special offers.

76

CHAPTER 5 ANNEXURE & BIBLIOGRAPHY

77

ANNEXURE
Questionnaire For Retailers
Greetings, I am a student of ITM Business School, Navi Mumbai. I am conducting a market research project with Vodafone Essar Ltd, Guwahati. I would be glad if you could spare a few minutes to answer the following questions.
Form No:

Q1) Which Medium do you prefer Paper Recharge Easy Recharge

Q2) Out of these which has the highest sale of Top Ups? (Tick any One) Vodafone Aircel Airtel Reliance Idea Tata Indicom BSNL

Which MRP Top Up is highest in sales? (Please Specify) _________________________________________________ Q3) Out of these which has the highest sale of SMS packs? (Tick any One) Vodafone Aircel Airtel Reliance Idea Tata Indicom BSNL

Which MRP SMS Pack is highest in sales? (Please Specify) _________________________________________________ Q4) Out of these which has the highest sale of Bonus Card or Rate Cutters? (Tick any One) Vodafone Aircel Airtel Reliance Idea Tata Indicom BSNL

Which MRP Bonus Card is highest in sales? (Please Specify) _________________________________________________ Q5) Out of these which has the highest sale of GPRS pack? (Tick any One) Vodafone Aircel Airtel Reliance Don t Have

Which MRP GPRS is highest in sales? (Please Specify) _________________________________________________

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Q6) Which Communication Mode is mostly used by Companies for Promotional Offers? SMS Out Bound Dial Newspaper Radio Website Any Other Mode

USSD (*140# for Vodafone, *306# for Reliance etc)

Any Other Please Specify___________________________________________ Q5) Which Communication Mode do you prefer for receiving New Promotional Offers? (Tick any One) SMS Out Bound Dial Newspaper Radio Website Any Other Mode

USSD (*140# for Vodafone, *306# for Reliance etc)

Any Other Please Specify___________________________________________ Q6 What time do you prefer to receive the promotional offers? Morning Afternoon Evening Night

Q7) Any POSITIVE FEEDBACK, SUGGESTION or Complaints for any network provider _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________

Thank You for your time!

79

Questionnaire for Customers
Greetings,

Form No:

I am a student of ITM Business School, Navi Mumbai. I am conducting a market research project with Vodafone Essar Ltd, Guwahati. I would be glad if you could spare a few minutes to answer the following questions. Q1) Which of the following age groups you belong to Less than 15 years 15-20 years 20-25 years 25-30 years above 30 years

Q2) GENDER:

MALE

FEMALE

Q3) Which of the following network connection do you avail? (Tick any One) Aircel Airtel Reliance Idea Tata Indicom BSNL Vodafone

Q4) Which of following is the reason for selecting your connection provider? (Tick any One) Network Product Offerings Other Reason Pricing Availability of Recharges (Distribution)

Customer Service

Any Other Please Specify___________________________________________

Q5) Which Communication Mode is mostly used by Companies for Promotional Offers? (Tick any One) SMS Out Bound Dial Newspaper Radio Website Any Other Mode

USSD (*140# for Vodafone, *306# for Reliance etc)

Any Other Please Specify___________________________________________

Q6) Which Communication Mode do you prefer for receiving New Promotional Offers? (Tick any One) SMS Out Bound Dial Newspaper Any Other Mode Radio Website

USSD (*140# for Vodafone)

Any Other Please Specify____________________________________________ 80

Q7) What time do you prefer to receive the promotional offers? (Tick any One) Morning Afternoon Evening Night

Q8) What is your monthly expenditure on your network connection?(in Rupees) Less than 100 100 200 200 -400 400-600 600 -800 above 800

Q 9) FOR VODAFONE CUSTOMERS ONLY -

Poor Quality of Services of Vodafone

Average

Good

Very Good

Excellent

Q10) Any POSITIVE FEEDBACK, SUGGESTION or COMPLAINTS for your network provider _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________

Thank You for your time!

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BIBLIOGRAPHY 

Kothari C.R, ³Research Methods and Techniques´ New Delhi, New Age International (P) Limited, Publisher.  ³Marketing Management´ Thirteenth Edition by Kotler, Keller, Koshy and Jha.  Beri G.C ³Marketing Research´ Third Edition New Delhi Tata McGraw Hill Publishing Company Limited.  www.vodafone.co.in  www.wikipedia.org  www.surveysystem.com  www.trai.gov.in

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