Marketing Strategies and Services of MTS Mobile India (Sstl) 2011

REEMA PRAKASH RAJOLI 15/01/2011

CONTENTS VISSION.OBJECTIVE, METHODOLOGY.PRODUCT LINE.SEGEMENTATION.MARKETING MIX. TARGET MARGETING. POSITIONING STRATEGY. DIFFERENTIATIION STRATEGY, SWOT. MARKETING STRATEGY. RECOMMENDATIONS

MTS initiated its international expansion in 2002 through the establishment of Mobile TeleSystems LLC. MTS entered Central Asia in 2004 through the acquisition of the leading mobile phone operator in Uzbekistan. The decision to introduce the brand to India is reflective of the brand¶s success in the Company¶s markets of operation since its launch in May 2006. an affiliate of Deutsche Telekom AG. based in a high -growth emerging market and simultaneously entering other developing markets with a unified brand. In 2003. a ranking published by the Financial Times and Millward B rown. Mobile TeleSystems is the largest mobile phone operator in Russia and the CIS. MTS extended its brand outside the CIS borders. K -Telecom. .HISTORY MTS was established in October 1993 by Moscow City Telephone Network (MGTS). MTS continued its international expansion through the acquisition of the leading mobile operator in Armenia. In April 2008. the national fixed line operator in Belarus.. Sistema JSFC acquired a majority stake in MTS and has remained the primary owner ever since. MTS continued t o expand in the CIS by acquiring the leading operator UMC in Ukraine. Having been recognized internationally for corporate governance and transparency. Today. a joint venture with Beltelecom. MTS is not only a leading Russian blue -chip company. JSFC Sistema's telecommunications subsidiary in India. announced the agreement to allow Shyam Telelink to use MTS brand in India. In December 2008. MTS was the first company to launch GSM services in the Moscow region in 1994. but a truly global organization. In September 2007. Inc. MTS has expanded rapidly in Russia largely through the acquisition of smaller independent players and became the leading national mobile operator. T-Mobile Deutschland GmbH (T-Mobile). In late 1996. In subsequent years. MTS and Shyam Telelink Limited. MTS brand was recognized as one of the BRANDZŒ Top 100 Most Powerful Brands. Siemens AG (Siemens) and several other shareholders. Uzdunrobita. the number one operator in Turkmenistan. a leading global market research and consulting firm. the Co mpany acquired Barash Communications Technologies. MTS is a multinational corporation of a new type. In June 2005. the biggest CIS market outside of Russia.

We will provide this connectivity in a simple. This drive for progress arises from our deep urge ±to explore. MISION AND OBJECTIVE Vision -Booming and prosperous India driven by hundreds of millions success Stories MTS will be the driving force for bringing New India into the fold of Opportunities. and to improve. effective and affordable manner . to achieve. Mission -Enable New India¶s continuous renewal-We believe the power of connectivity will provide New India with a new sense of identity and opportunity. to change. to create.VISION.

long distance(LD).OBJECTIVE The Indian communications scenario has transformed into a multiplayer. Within the basic phone service the value chain has split into domestic/local calls. MTS has to gear itself to meet competition in various segments ± basic services. and Experiment Secondary data source Internet Newspaper Magazines . long distance players.It has forayed into mobile service provision as well. and international long distance players. multi product market with varied market size and segments. METHODOLOGY METHODOLOGY Primary data source Observation method. and Internet Service Provision(ISP). International Long Distance (ILD). Apart from having to cope with the change in structure and culture (government to corporate).

PRODUCT LINE: HIGH-SPEED INTERNET AND SMART MOBILE TELEPHONY .

148 Rs. GEOGRAPHIC SEGEMENTATION: Country.SEGEMENTATION: DEMOGRAPHIC SEGEMENTATION: MTS has divided its market on the basis of the following variables.e. 100 90 days # 1paisa/second on all local networks. Age ± 18yrs to 60yrs Gender ± male and female Income more than 60. Independence Day. 4 P¶S OF MARKETING: 1) PRODUCTMTS has launched its various products in the market like its connection kits. Diwali PSYCOLOGICAL SEGEMENTATION. Mblaze and mobile handsets. Lifestyle. Festivals.all states of India BEHAVIOURAL SEGEMENTATION: Occasions.based on people¶s way of living Values. Their product is strong because of their low tariffs and innovative schemes like get unlimited MTS to MTS minutes free for 999 days by just investing 999.according to the values of an individual. and 1000000 minutes free on every new connection MRP Talktime Validity Call Charges (Rs.India State. 98 Rs. ‡ Standard rates applicable for all other call and sms . 50 60 days Rs.000 per annum ./min) Local MTS Mobiles Other Mobiles & Landlines STD All Mobiles and Landlines 1paise/ second 1paisa/ 4 seconds 1paisa/ 2 seconds Rs. Marriage Anniversary. wireless USB Modem i. 49 Rs.Rakshabandhan.Birthday. 0 60 days Rs.

company is trying to grab the market by their promotion of 10 . as the MTS is providing two data cards one as they call it standard data card priced for Rs 1999 and other premium data card priced for Rs2299. Mumbai and so other. TARGET MARKETING: More than 2 million subscribers by 2011 elite class up market. professionals.e. Kolkata. Manufacturer-distributor-retailerconsumer. Distribution part of MTS comprises of a chain of distribution i. 00. . company is also targeting the road side hoardings and advertisement in television and on radios .MTS connections are available in most of telecom retail shops in various major cities like Delhi and Mumbai 4) PROMOTIONPromotion is the life of any company and same for the MTS. High corporate clients Low income group people Youth with youth club.000 minutes free to new subscribers of MTS and this strategy seems working for them.MTS is now setting up in India and targeting the Indian youth by providing low tariff plans and various internet services. women and senior citizens by post-paid connection. PAN India targeting. NCR.Get started with MTS 2) PRICEThe company decided to offer ½ a paisa second call. 3) PLACEPlace is also a major determinant for a product¶s success or failure. Compan y has also targeted the rural area of the country like Bihar. apart from this strategy company is planning to sign a celebrity to createan image in the mind of the target audience. MTS has launched its various products in Major metro cities like Delhi. Company has also priced its internet data card.

- . and overall reliability. The company operates on CDMA-based technology that. They are talking about exclusivity of the network and services they are offering to the customers. DIFFERENTIATION MTS India¶s strategy calls for differentiation from the mainstream rather than face-to face competition with the rest of the market. coverage outside of urban areas. in the case of the Indian telecom market.POSITIONING: TAGLINE: ´ BANDLO LIFE KA PLAN´ They have focused more on middle class people and young generation. which is dominated by large local players and a few global players. offers a number of notable end -user advantages compared to GSM. including better connectivity.

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Innovative schemes: Sistema Shyam Teleservices have launched a special offer in Rajasthan. Letting you roam anywhere in India with its Pan -India presence.SWOT ANALYSIS Strengths of the company Experience in Russia: MTS is having a huge experience in this field of business as they have been showing their presence since 1993 and a great customer experience in Russia and in other countries.e. Low tariff plan: MTS is coming with one of cheapest tariffs in telecom sector by providing ½ paisa second call and in some region plan gets even cheaper ½ paisa 2 seconds. . Experience of MTS will help them to plan their strategy for Indian market accordingly. The mobile services g roup provides CDMA mobile services across India in 11 telecom circles. wherein a MTS mobile customer can make unlimited outgoing calls to any MTS mobile within the state for 999 days just by paying 999 rupees . Pan India footprint: MTS is going to offer the most expansive roaming network. and trot across the globe with International Roaming spread in over the networks.MTS is also launching a very different and attractive scheme i. 100000 minute free talk time with every new connection.

Creating Customer Awareness of its products through advertisin g. Other opportunities: India is the second-largest telecommunications market in terms of sheer numbers of potential subscribers. MTS can cover all the 22 telecom circles of India through its adequate strategies n Investment in network Coverage. Opportunities for the company Latest technology and low cost advantage: MTS can enjoy its latest technology and low cost advantage. An expanding Indian economy with increased focus o n the services sector. Population mix moving favourably towards a younger age profile. . Price competition from TATA docomo and AIRCELL: MTS will face competition from TATA Docomo and AIRCELL because they are also having some better scheme than MTS. MTS cangain a big market share in this segment. it will face a cut throat competition from its competitors. Urbanization with increasing incomes. and one of t he fastest growing in the world . Besides such cost advantages. Huge market: The cellular telephony market is presently expanding at a phenomenal / whopping __ rate every year and there is still vast scope for MTS to enter /expand in this market.Weaknesses of the company New entrant in Indian Telecom market: As MTS is a new entrant in the Indian telecom sector. With its presence even in the remotest areas. towns and villages it has covered already works to its advantage as putting more base stations for cellular coverage in these areas comes with negligible marginal cost. it has also other cost advantages for the latest cellular technology. Less Network coverage across telecom circles of India. The number of cities.Besidesthere is a vast rural segment where the cellular services have not made much headway and many customers are looking towards MTS for providing the service to them. not having a good customer base. Least Brand Recall in Customer¶s mind in India: As the company is a new entrant in the Indian cellular market customer will have a perception of bad network and not a good customer service. As MTS is spreading its network coverage very fastly amongst all the circles where they operate but still it is facing a bad network coverage problem. Docomo is providing ½ paisa second to almost all the circles by just getting a voucher. And Aircel is also coming up with very attracting packages with low tariffs.

. MTS broke through the fierce competition in telecom market as it says ³Badlo life ka plan´. socio geographic and income segments with a consistent message of quality and leadership. Other threats A new entrant in the market. its cellula r service will be a flop.the consumer¶. To facilitate the further growth and recognition of the brand. trustworthy and quality focused company. Less product awareness in the market. MTS recently adopted new brand standards to communicate the brand consistently in all massaging and reinforce its perception as a strong trustworthy and quality focused company. pricing and marketing policies lest its presence in the market be treated with disdain by the private cellular companies. It needs to be proactive with attractive packaging. trying to grab most of the ¶mind share of the king . MTS is trying to create a good image in customers mind as a strong. If MTS will not be innovative and agile. Brand perception. needs beyond the cultural. Fierce and cut -throat competition is already in place with the markets ever abuzz with several tariff reductions an announcement of attractive packag es. MARKETING STRATEGY The brand was developed to attract customers in variety of cultural. MTS created its brand awareness among customers by large scale promotions in forms of advertisements on TV s. MTS studied the current market scenario in Telecom market and designed its strategies and product development according to the prevalent conditions in the market. The launch of WLL services by Reliance communication has aggravated the situation. whose benefits are increasing with passing of everyday.Threats for the company Competition from other cellular¶s: It is time for MTS to improve/expand its cellular services. MTS developed its products to meet the customers socio-geographic and income con straints. newspapers and hoardings across cities.

Company should offer such a strong customer service that when a customer uses should be able realize the service is going to be the best. Newspapers and hoardings on Metro stations and highways to attract customer¶s attention . as such there is no such services being provided by the company. Company should do its promotion on a large scale to show their presence in the market as done by Vodafone . . RECOMMENDATIONS: MTS should do its product promotion on a very large to make people aware of MTS existence in Indian Telecom Market.To break through heavy competition in telecom market by launching its cheap calling plans and affordable internet connection services. Company should ask for suggestion from people by various promotion strategy s. they can do one thing that when people call to costumer care they should add another feature of press this butto n to provide suggestion. MTS is adopting various effective promotional schemes like Advertising on TV s.

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