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29331480 Idea Report (Repaired)

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    SUMMER TR INING PROJECT REPORT ONON

    TELECOMMARKETSHAREANDCHANNELMANAGEMENT

    Submitted in partial fulfillment of the requirements forAward of

    Master of Business Administration

    Submitted to: Submitted by:

    Mr. Satish Chandra Tiwari Arun Yadav

    MBA 3rd Semester

    Roll No.: 1217970004

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    ACKNOWLEDGEMENT

    This report bears the imprint of many people. Right from the

    experienced staff of Idea Cellular Ltd, to the staff JEEVANDEEPINSTITUTE OF MANAGEMENT & TECHNOLOGY VARANASI without

    whose support and guidance I would have not got the unique

    opportunity to successfully complete my internship in this esteemed

    organization.

    I would like to thank Mr. Amaljeet Singh, who allow me to do this

    project in IdeaCellular Ltdsuccessfully.

    I take this opportunity to express my deep gratitude to all the

    employees of, Idea, Varanasi. Also I am indebted for the rich guidance,

    knowledge and suggestions provided by my guide, Mr. Mr. Satish

    Chandra Tiwari who took sincere efforts and illustrated the Marketing

    Concept and channel development in Idea Cellular Ltd, with their vast

    knowledge in the field, which helped me in carrying out my internship.

    Last but not least, I also thank all those people whom I met in theindustry during my internship and helped me to accomplish my

    assignments in the most efficient and effective manner.

    Date: Arun Yadav

    Place: Varanasi

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    Table of Content

    1)Objective of the project....................................5-6

    2)Overview of telecom industry.7-17

    Telecom Industry in India

    History of Indian Telecommunications

    Classification of Telecommunication services

    The Key players in the Telecom Market in India

    Subscribers

    Market Share of the Telecom Company in India

    3)Introduction of Idea Cellular18-26

    Introduction

    Our Service Areas

    Established Service Areas

    New Service Areas

    Holding

    Mission

    Board of Directors

    Corporate Leadership Team

    Circle Heads

    Brand Information

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    4)Research Methodology.27-31

    Definition of Research

    Types and Techniques

    Tools used

    Limitation of the study

    5)Data Analysis & Interpretation.32-39 Questionnaires for the customer

    6) Telecom Market Share in Varanasi..40-45

    7) Distribution channel of idea.46-56

    Introduction

    Distribution Strategy

    Selecting members within a channel

    Motivating Channel Members

    Sales Organization structure

    Distribution channel of idea in Varanasi

    Visit with TSM

    Customer Interaction when visit with FOS

    8) Channel Management..57-61

    9) Observation and Finding62-64

    10) Bibliography .65-67

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    Objective Of the

    Project

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    OBJECTIVES OF THE PROJECT

    1. To find out the perception of the general people towards the land line & Mobile phone.

    2. To find out the telecom market share of different companies in Varanasi.

    3. To find out the consumer satisfaction towards the different plans offered by the company.

    4. Managing the distribution channel of idea cellular.

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    Overview of telecom

    industry

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    Telecom Industry in India

    The telecom industry is one of the fastest growing industries in India. India has nearly 200 milliontelephone lines making it the third largest network in the world after China and USA. With a growth

    rate of 45%, Indian telecom industry has the highest growth rate in the world.

    - Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the

    growth in demand in countries like India and China.

    - Indias mobile phone subscriber base is growing at a rate of 82.2%.

    - China is the biggest market in Asia Pacific with a subscriber base of 48% of the total Subscribers in

    Asia Pacific. Compared to that Indiasshare in Asia Pacific Mobile Phone market is 6.4%. Considering

    the fact that India and China have almost comparable populations, Indias low mobile

    penetration offers huge scope for growth.

    History of Indian Telecommunications

    Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of

    British power). Telephone services were introduced in India in 1881. In 1883 telephone services were

    merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After

    independence in 1947, all the foreign telecommunication companies were nationalized to form the

    Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of

    Communications. Telecom sector was considered as a strategic service and the government considered

    it best to bring under state's control.

    In 1990s, telecommunications sector benefited from the general opening up of the

    economy. Also, examples of telecom revolution in many other countries, which resulted in better quality

    of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in

    opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was

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    the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997,

    Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to

    facilitate the growth of the telecom sector.

    Telecommunication sector in India can be divided into two segments: Fixed Service

    Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic

    long distance and international long distance services. The state operators (BSNL and MTNL), account

    for almost 90 per cent of revenues from basic services. Private sector services are presently available in

    selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private

    services focus on the business/corporate sector, and offer reliable, high- end services, such as leased

    lines, ISDN, closed user group and videoconferencing.

    Cellular services can be further divided into two categories: Global System for Mobile Communications

    (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodafone-

    Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up

    of international and domestic long distance telephony services are the major growth drivers for cellular

    industry. Cellular operators get substantial revenue from these services, and compensate them for

    reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in

    tariffs for airtime, national long distance, international long distance, and handset prices has driven

    demand.

    India added 13.82 million new mobile subscribers in February 09, down from 15.41 million a month

    earlier, according to Indian telecom regulator TRAI. Indias total number of mobile subscribers rose to

    376.12 million at end-February from 362.30 million at the end of January.

    While China added 18.55 million new mobile phone subscribers in the first two months of 2009 and

    total wireless subscriber base stood at 659.78 million as of end-February 2009. China Mobile subscribers

    sent 607.1 billion SMSs last year, up by over 100 billion from the last year, and downloaded more than

    76 million full music tracks.

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    Indias GSM subscribers totaled 277.5 million by end-February, accounting for nearly 75% of total

    wireless market share. According to figures released by the Cellular Operators Association of India

    (COAI), GSM players added 10.84 million new subscribers in March, taking total GSM subscriptions for

    the fiscal year to 288.3 million. The numbers exclude subscriptions for Reliance Communications, the

    CDMA service provider that recently launched GSM services, because the company does not reveal GSM

    numbers separately. If the estimates of 2.5 million to 2.7 million GSM subscribers for Reliance

    Communications are added, the total monthly increase for GSM subscriptions will be 13.54 million.

    At this rate, Indias GSM subscriber base is growing at more than double the monthly growth rate of

    China, which is adding around 6 million customers every month.

    Though March has more days and companies pushsales at the end of the financial year, we expect to

    see monthly incremental growth of 14 to 15 million consumers in 2009-10. Our estimate is that mobile

    penetration will go up from 35% currently to 50% by the end of this financial year, said TV

    Ramachandran, COAI secretary- general.

    COAI has predicted that India will have around 500 million GSM subscribers by the end of 2009-10 and

    over 800 million by 2012. The country would hit the one billion markets in a few years after that.

    COMPANY USERS AT MARCH 2009

    AIRTEL 93923248

    VODAFONE 68768998

    BSNL 46684049

    IDEA 43022799

    AIRCEL 18478325

    RELIANCE TELECOM 11145176

    MTNL 04176676

    BPL 02164211

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    This table shows the present status of GSM players in India, where Bhari Airtel is leading then at 2 nd

    position Voafone-Essar group is present after that Bharat Sanchar Nigam Limited with customer of 4 Cr

    is present. Idea Cellular with 43022799 is present then Aircel, Reliance GSM, MTNL and BPL are at 5 th,

    6th, 7thand 8thposition respectively.

    The pie chart below shows that percentage of market capture in terms of customer.

    The Chart shows that in GSM service 35% of the total market captured by Airtel, 25% market capturedby Vodafone, 17% market captured by BSNL, 16% market captured by Idea and then rest are follows.

    Market research firm Gartner Inc. Forecasts India will spend 739 billion rupees ($16.34 billion) on

    telecom services and equipment in 2006, up 27.3 percent from this year. Forecasted Growth of Indian

    Airtel35%

    Vodafone

    25%

    BSNL

    17%

    Idea

    16%

    Reliance

    4%

    MTNL

    2%BPL

    1%

    Market Capture by telecom players

    http://www.lightreading.com/complink_redirect.asp?vl_id=7426http://www.lightreading.com/complink_redirect.asp?vl_id=7426
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    Telecom Spending Through 2009:-

    Revenue of Telecom Industry in India:-

    Continuing its robust growth, the Indian telecom industry saw its gross revenues growing 2.6 percent to

    more than Rs.40, 000 crore in the quarter ending March 31, said the sectoral watchdog here on

    Monday.

    According to the Telecom Regulatory Authority of India (TRAI), the gross revenue of the telecom

    sector for the period under review stood at Rs.40, 444.66 crore, as against Rs.39, 408 crore in the

    previous quarter. The state-owned operators -- Bharat Sanchar Nigam and Mahan agar Telephone

    Nigam -- together earned Rs.10, 599 crore, while private players raked in Rs.29, 846 crore. TRAI said

    India's total subscriber base reached 429.72 million by March-end, as against 384.79 million for the

    quarter ending December, registering a growth of 11.68 percent.

    Tele-density, too, increased 36.98 percent from 33.23 percent in the previous quarter.The subscriber base of wireless and wire line increased to 391.76 million and 37.96 million respectively.

    However, rural wire line decreased from 10.68 million to 10.58 million, a decrease of 0.93 percent.

    According to the watchdog, the ARPUs (average revenue per user) continued to fall, decreasing 6.82

    percent from Rs.220 in December-end to Rs.205 in March.

    India rupees (millions) 2004 2005 2006 2009 CAGR 2004-2009 AGR 04-05 AGR 05-06

    Telecom spending 501,009 581,101 739,910 1,419,062 23.1% 16% 27.3%

    Source: Gartner Inc.

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    The number of Internet wire line subscribers increased 5.3 percent to 13.54 million in the fourth quarter

    as against 12.85 million in the same period a year before.

    Sales of cellular companies in India (Jun 09):-

    BSNL & MTNL

    26%

    Private Players

    74%

    Percentage of Total Revenue in Q2

    2818

    9040

    3031

    1085330

    Idea Airtel Reliance MTNL Spice

    Sales in Crore

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    Gross Profit cellular companies in India (Jun 09):-

    Classification of Telecommunication services

    1. Basic services

    2. Cellular services

    3. Internet Service Provider (ISP)

    The Key players in the Telecom Market in India

    Cellular Service provider:

    1. BSNL

    2. Airtel

    715

    4032

    123

    2620

    28

    Idea Airtel MTNL Reliance Spice

    Profit In Crore

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    3. Vodafone

    4. Idea

    5. Reliance

    6. Tata indicom

    7. Aircel

    8. Spice

    9. MTNL

    Subscribers

    Wireless subscribers crosses 200 million mark

    Tele density reaches 21.20%

    The total number of telephone subscribers has reached 241.02 million at the end of August 2007 as

    compared to 232.87 million in July 2007. The overall teledensity has increased to 21.20% in August 2007

    as compared to 20.52% in July 2007.

    In the wireless segment, 8.31 million subscribers have been added in August 2007 while 8.06 million

    subscribers were added in July 2007. The total wireless subscribers (GSM, CDMA & WLL (F)) base

    reaches 201.29 million at the end of August 2007.

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    The wire line segment subscriber base stood at 39.73 million with a decrease of 0.16 million at the end

    of August 2007. Circle wise wire line subscriber base of service providers is given at following chart.

    Market Share of the Telecom Company in India

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    Introduction

    Of

    Idea

    Cellular

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    INTRODUCTION

    As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to operate in 11 circles. With

    a customer base of over 17 million, IDEA Cellular has operations in Delhi, Maharashtra, Goa, Gujarat,

    Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh and

    Kerala. IDEA Cellular's footprint currently covers approximately 45% of India's population and over 50%

    of the potential telecom-market.

    As a leader in Value Added Services, Innovation is central to IDEA's VAS Factory. It is the first cellular

    company to launch music messaging with 'Cellular Jockey', 'Background Tones', 'Group Talk', a voice

    portal with 'Say IDEA' and a complete suite of Mobile Email Services.

    Idea Cellular is a wireless telephony company operating in various states in India. It initially started in

    1995 as a join venture between the Tatas, Aditya Birla Group and AT&T by merging Tata Cellular and

    Birla AT&T Communications.

    Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004 gave Idea a

    truly pan-India presence covering Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh,

    Madhya Pradesh, Chattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan and Delhi

    (inclusive of NCR).

    The company has its retail outlets under the "Idea n' U" banner. The company has also been the first to

    offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban areas.

    IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange

    (BSE) and the National Stock Exchange (NSE) in March2007.

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    IIDEA Cellular is a leading GSM mobile service operator with pan India licenses. With a customer base of

    over 44 million in 17 service areas, operations are soon expected to start in Chennai Metro; Kolkata &

    West Bengal, North East & Assam, and J&K.

    A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the

    most customer friendly and competitive Pre Paid offerings, for the first time in India, in an increasingly

    segmented market. From basic voice & Short Message Service (SMS) services to high-end value added

    services such as Mobile TV, Games etc - IDEA is seen as an innovative, customerfocusedbrand.

    IDEA 'Women's Card' caters to the special needs of women on the move, and 'Youth

    Card' covers the emerging youth segment. IDEA 'My Gang' - the widely popular community user group

    product recently bagged the prestigious 'Golden Peacock Award 2008' under the Most InnovativeProduct category at the "19th World Congress on Total Quality".

    A brand known for many firsts, IDEA was the first to launch GPRS and EDGE in India.

    IDEA has partnered with Research in Motion (RIM) to offer Blackberry services on its network. IDEA

    'Net Setter'- Plug & Play, EDGE enabled USB Data Card offers affordable data connectivity with faster

    speed and consistency.

    IDEA offers seamless coverage to roaming customers traveling to any part of the country, as well as to

    international traveling customers across over 200 countries. IDEA Cellular has partnership with over

    400 operators worldwide to ensure that customers are always connected while on the move, across the

    globe.

    IDEA has received several national and international recognitions for its path-breaking innovations in

    mobile telephony products & services. It won the GSM Association Award for "Best Billing and Customer

    Care Solution" for 2 consecutive years. It was awarded "Mobile Operator of the Year Award - India" for

    2007 and 2008 at the Annual Asian Mobile News Awards.

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    Our Service Areas

    The Indian telecommunications market for mobile services is divided into 22 "Service Areas" classified

    into "Metro", Category "A", Category "B" and Category "C" service areas by the Government of India.

    These classifications are based principally on a Service Area's revenue generating potential. Our 17

    operational Service Areas are broken up into Established and New Service Areas

    Established Service Areas

    The established service areas are Delhi, Andhra Pradesh, Gujarat, Maharashtra, Haryana, Kerala,

    Madhya Pradesh and Uttar Pradesh (West).

    Licenses for the Maharashtra and Gujarat Service Areas were awarded in December 1995, with network

    rollout and commercial launch achieved in 1997. In January 2001 the mobile operations in Andhra

    Pradesh Service Area were integrated with IDEA through a merger with Tata Cellular Limited.

    In June 2001, the mobile operations in Madhya Pradesh Service Area were fully integrated

    with IDEA through an acquisition of RPG Cellcom Limited. In October 2001, the license for Delhi Service

    Area was acquired during the fourth mobile license auction, with network rollout and commercial

    launch in November 2002.

    In January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was acquired

    with its original licenses in the Service Areas of Haryana, Uttar Pradesh (West) and Kerala. All these

    Service Areas were re-branded and integrated with IDEA in June 2004

    New Service Areas

    The New Service Areas are Uttar Pradesh (East), Rajasthan, Himachal Pradesh, Bihar, Mumbai,

    Karnataka, Punjab, Orissa and Tamil Nadu ,Licenses for Uttar Pradesh (East), Rajasthan and Himachal

    Pradesh were acquired through the acquisition of Escotel (Escorts Telecommunications Limited).

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    Brand Idea was launched in Karnataka and Punjab, through the acquisition of

    Spice Communications. Idea launched its services in Mumbai and Bihar in 2008. The Mumbai launch was

    the largest Metro City launch in India. In Bihar, Idea acquired 500,000 subscribers in just over 100 days.

    Holding

    Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the company. But following

    AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its 32.9% stake in Idea.

    This stake was bought by both the Tatas and Birlas at 16.45% each.

    Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a

    CDMA-based mobile provider, cropped differences between the Tatas and the Birlas. This dual holding

    by the Tatas also became a major reason for the delay in Idea being granted a license to operate in

    Mumbai. This was because as per Department of Telecom (DOT) license norms, one promoter could not

    have more than 10% stake in two companies operating in the same circle and Tata Indicom was already

    operating in Mumbai when Idea filed for its license.

    The Birla thus approached the DOT and sought its intervention, and the Tatas

    replied by saying that they would exit Idea but only for a good price. On April 10, 2006, the Aditya Birla

    Group announced its acquisition of the 48.18% stake held by the Tatas at Rs. 40.51 a share amounting to

    Rs. 44.06 billion. While 15% of the 48.14% stake was acquired by Aditya Birla Novo, a company in-charge

    of the Birlas' new business initiatives, the remaining stake was acquired by Birla TMT holdings Private

    Ltd., an AV Birla family owned company. Currently, Birla Group holds 98.3% of the total shares of the

    company.

    Idea has successfully launched 3 more new circles (states) in India viz. Rajasthan, Himachal Pradesh and

    UP (East) to make itself a pan-India player. Recently, Idea got licenses to operate in Mumbai & Bihar.

    They are awaiting the spectrum from Dot.

    Mission

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    Key People

    Board of Directors

    Mr. Kumar Mangalam Birla (Chairman)

    Smt. Rajashree Birla

    Mr. Saurabh Mishra

    Mr. Sanjeev Aga (Managing Director)

    Mr. Arun Thiagarajan

    Ms. Tarjani Vakil

    Mr. Mohan Gyani

    Mr. Gian Prakash Gupta

    Mr. R.C. Bhargava

    Mr. P. Murari

    Mr. Biswajit A. Subramanian

    Dr. Hansa Wijayasuriya

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    Management Team

    Corporate Leadership Team

    Mr. Sanjeev Aga, Managing Director

    Mr. Akshaya Moondra, Chief Financial Officer

    Mr. Anil K. Tandan, Chief Technology Officer

    Mr. Prakash K. Paranjape, Chief Information Officer

    Mr. Pradeep Shrivastava, Chief Marketing Officer

    Mr. Navanit Narayan, Chief Service Delivery Officer

    Mr. Vinay K. Razdan, Chief Human Resource Officer

    Mr. Ramjet K. Mukarji, Chief Corporate Affairs Officer

    Mr. Rajesh K. Srivastava, Chief Materials & Procurement Officer

    Mr. Ambrish Jain, Director - Operations

    Mr. Himanshu Kapania, DirectorOperations

    Brand Information.

    The brand Idea

    It is almost impossible to disintegrate brand Idea from the corporate Idea. Brand values are the

    company values and vise versa.

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    Brand Vision: It goes without saying that the brand vision of idea mirrors the companys vision. The

    brand mission statement is...... To be the most customer-focused mobile service brand, continuously

    innovating to help liberate our customers from the shackles of time & space.

    IDEA - Brand Values

    Innovate. Stimulate. Liberate....

    It is these brand values, which have made us a formidable player in the telecom industry. Innovations

    that stimulate the customer and liberate him from the shackles of time and space are the core of our

    brand. This is what we strive for. Nothing more, nothing less, nothing else.

    IDEA - Brand Mission

    The India footprint Idea

    Anywhere connectivity - bringing India closer.

    The Technology Advantage Idea

    Tomorrow's technology to enrich today.

    The Customer Focus Idea

    Make a single interaction a lasting relationship.

    The Employee Focus Idea

    Nurture the roots that nurture our ideas.

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    Brand Initiatives

    Our aim, through media buying and planning, is to create year round impact. With the objective of

    strengthening our brand, we work with strategic communication partners on campaigns like sponsorship

    of the Idea International Indian Film Academy awards and the television programs Idea Rocks India,

    Idea Star Singer and Idea Andhra Idol. We seek engagement with subscribers on a variety of levels,

    from major celebrity fashion shows to small local events timed to coincide with new product offerings.

    Since August 2003, we have commissioned a Brand Track Index Study to evaluate

    the health of our brand. The Brand Track Index Study is a monthly study conducted by TNS, a marketing

    consultant engaged by us to evaluate our brand using face-to-face interviews on a random sample of

    mobile users a well as those intending to purchase mobiles within the next three months. According to

    the study our brand is perceived as reliable/trustworthy and one that offers cheaper and good

    promotional offers. We have improved our rating in the Brand Track Index calculated by the study in

    the past year reflecting, we believe, the growing strength of our brand.

    The main communication medium for the Idea brand is television, where we seek

    strategic Idea brand coverage in various formats. Billboards and hoardings are used as a secondary

    medium, customized for specific regional preferences to communicate effectively at the local level. We

    also use other mass communication media such as the press and radio to communicate price plans and

    other tactical and customer information.

    All our key initiatives are subjected to a rigorous testing and launch process to ensure

    accountability for all advertising spend and improve the chances of success of a new product. This

    process is followed up with extensive briefing of call center agents and sales personnel and real-time

    tracking of the impact of the communication and feedback from subscribers.

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    Research

    Methodology

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    Definition of Research

    The word researchis derived from the Latin word meaning to know. It is a systematic and a replicable

    process, which identifies and defines problems, within specified boundaries. It employs well-designed

    method to collect the data and analyses the results. It disseminates the findings to contribute to

    generalize able knowledge. The characteristics of research presented below will be examined in greater

    details later are:

    Systematic problem solving which identifies variables and tests relationships between them,

    Collecting, organizing and evaluating data.

    Logical, so procedures can be duplicated or understood by others

    Empirical, so decisions are based on data collected

    Reductive, so it investigates a small sample which can be generalized to a larger population

    Replicable, so others may test the findings by repeating it.

    Discovering new facts or verify and test old facts.

    Developing new scientific tools, concepts and theories, which would facilitate to take

    decision?

    For the proper analysis of data simple statistical techniques such as percentage were use. It helps in

    making more generalization from the data available. The data which was collected from a sample of

    population was assumed to be representing entire population was interest. Demographic factors like

    age, income and educational background was used for the classification purpose.

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    Sample size

    For carrying out any research or study on any subject it is very difficult to cover even 10% of the total

    population. Therefore the sample size has to be decided for a meaningful conclusion. For designing the

    sample size, it was thought proper to cover a very small percentage of population in various age groups.

    The method used for sample technique was non probability convenience sampling method. This method

    is used because it is known previously as to whether a particular person will be asked to fill the

    questionnaire. Convenient sampling is used because only those people will be asked to fill the

    questionnaires that were easily accessible and available to the researcher.

    Considering the constraints, it was decided to conduct the study based on sample size of 100 people in

    specific age groups. Scientific method is not adopted in this study because of financial constraints and

    also because of lack of time; also the basic aim of doing the research is academic, hence most

    convenient way is selected.

    TYPES & TECHNIQUES

    The study conducted is a conclusive descriptive statistical study; the researcher comes to the decision

    which is precise and rational. The study is conclusive because after doing the study the researcher

    comes to a conclusion regarding the position of the brand in the minds of respondents of different firms

    groups. The study is statistical because throughout the study all the similar samples are selected and

    group together. All the similar responses are taken together as one and their percentages are calculated.

    Thus, this, conclusive descriptive statistical study is the best study for this purpose as it provides the

    necessary information which is utilize to arrive at a concrete decision.

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    TOOLS USED

    To know the response I have used the questionnaire method in sample survey. If one wishes to findwhat people think or know, the logical procedure is to ask them. This has lead marketing researchers to

    use the questionnaire technique for collecting data more than any other method. In this method

    questionnaire were distributed to the respondents and they were asked to answer the questions in the

    questionnaire. The questionnaires were structured non-disguised questionnaire because the questions,

    which the questionnaire contained, were arranged in a specific order besides every question asked was

    logical for the study, no question can be termed as irrelevant.

    The questionnaire, were non-disguised because the questionnaire were constructed so that the

    objective is clear to the respondent. The respondents were aware of the objective. They knew why they

    asked to fill the questionnaire.

    LIMITATIONS OF THE STUDY

    The research will be conducted in a limited area.

    The internet information can be irrelevant.

    Time will be a major constraint.

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    The respondent will be limited so cannot be treated as a whole population.

    The respondent may be biased.

    Due to language problem it is possible that the respondents are not be able to understand the

    questionnaire and can cause misleading results.

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    Page 32

    Data Analysis &

    Interpretation

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    Questionnaires for the customer

    DATA ANALYSIS & INTERPRETATION

    Q1. Which cellular service do you use?

    Tata indicom 5

    Options Percentage of respondents

    Airtel 34

    Idea 28

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    Q2. Which service you r using?

    Options Percentage of respondents

    Prepaid 95

    Postpaid 5

    Airtel

    34%

    idea

    28%

    Reliance17%

    BSNL

    16%

    TATA indicom

    5%

    Prepaid

    95%

    Postpaid

    5% 0%0%

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    Q4. Are you using lifetime or general plan?

    Option Percentage of respondents

    Lifetime 73

    General 27

    Q5 Are you satisfied with the lifetime plan which you are using?

    Option Percentage of respondents

    Yes 78

    lifetime

    72%

    General

    28%

    0% 0%

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    No 22

    Q6. Which facility attracts you most in the lifetime plan?

    Option Percentage of respondents

    Call rates 15

    Massage Tariff 1

    YES

    78%

    No

    22%

    0% 0%

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    Night Tariff 1

    Validity 83

    Q7. Rate of the satisfaction level with the services of your present lifetime plan?

    Option Percentage of respondents

    Fully satisfied 14

    Call Rates

    15%

    Massage

    Tarrif

    1%Night Terrif

    1%

    Validity

    83%

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    Satisfied 47

    Average 27

    Dissatisfied 8

    Highly dissatisfied 2

    8. Why you chose lifetime plan?

    Option Percentage of respondents

    For incoming purpose only 23

    Fully satisfied

    15%

    Satisfied

    51%

    Average

    30%

    Dissatisfied

    2%

    Highly dissatisfied

    2%

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    For money saving 48

    For the facilities provided in the plan 29

    For incoming

    purpose only

    23%

    For money saving

    48%

    For the facilitiesprovided in the plan

    29%

    0%

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    Telecom Market share

    in Varanasi

    Here we have prepared some questionnaires from the retailerspoint of view and tried to find out the

    market share of the following telecom industry in Varanasi:

    1. Idea

    2. Smart

    3. Airtel

    4. Vodafone

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    Findings:-

    In the survey of Varanasi city found this result by approaching different- different retailer who deals in

    the communication products and find out result in Varanasi city with the help of questionnaire. This

    finding is based on only last month result because we have to find out what is happened in last month

    after new launch of Vodafone in Varanasi.

    In chart-1 result shows that clearly that over 50% of the retailer pushes idea to the customer whereas

    Airtel is also good in Varanasi, 31% of the retailer pushes it.

    Chart -2 shows about Customer choice. Idea is leading here with 41% while Vodafone (35%) shows a

    great fight in this because it is launch recently in Varanasi and providing some great offers to attract new

    customer for building its reputation and market in Varanasi.

    While Airtel seems to be at 3rdposition with 22% of customers choose it.

    IDEA

    46%

    Airtel

    28%

    Smart

    13%

    Vodafone

    13%

    RETAILER PUSHES

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    Chart-3shows about the company which care most customer and retailers, here also Idea has a big lead

    over other GSM service providers with 61% of retailer told idea is best and 33% told Airtel is best while

    Smart is very poor and Vodafone is new in market so it is difficult to tell about Vodafone.

    Chart -4 shows about Most Recharge sold in last month, because of a good market and leading in

    customer in Varanasi Idea leads with 73%. Means 73% retails told that Idea recharges they sell most in

    last month whereas Airtel and Vodafone recharges sold only at 12 and 13 % shops.

    Idea

    41%

    Airtel

    22%

    Smart

    2%

    Vodafone

    35%

    CUSTOMER CHOICE

    Idea

    61%

    Airtel

    33%

    Smart

    4%

    Vodafone

    2%MOST CARE

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    Chart-5shows the total no of activation of Sims in last month. Vodafone has done a great job with 1038

    activation at approx 50 shops because of new exciting offers (99 value voucher which gives Unlimited

    calling to any Vodafone number in MP&CG for one months and many more).While idea is on 2 ndwith

    679 and Airtel on third with 496.Smart is at last with only 166 activation because of its poor network.

    Chart - 6shows the overall rating given by retailer, which shows a close competition between Idea and

    Airtel but idea has rated more than Airtel. In this rating 1 is for highest and 5 is for lowest. Idea got 1.38,

    Airtel got 1.69, Smart got 3.9 and Vodafone got 2.9.

    Idea

    73%

    Airtel

    12%

    Smart

    0%

    Vodafone

    15%

    RECHARGE SOLD

    Idea Airtel Smart Vodafone

    679496

    166

    1038

    ACTIVATION

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    Chart -7shows average stock available at retailer. An idea has a good market and no of activations is

    also more than any other provider so retailers have more stock of idea than any others. Vodafone has

    facing some problems in stock so average stock of Vodafone is only 3, idea has average stock of 19,

    Airtel has 12 and Smart has 14.

    Chart -8shows average balance in forms of both i.e. electronic recharge and paper recharge available at

    retailer. Total number of idea customer is more in Varanasi so retailer has to make a huge balance for

    idea so average balance available at retailer of Idea is 6067 Rs, Airtel is also improving very quickly so it

    has average balance of 4493 Rs and smart and Vodafone has 3433 and 2798 Rs respectively.

    Idea Airtel Smart Vodafone

    1.381.69

    3.9

    2.9

    RATING BY RETAILER

    HIGHEST=1 LOWEST=5

    Idea Airtel Smart Vodafone

    19

    1214

    3

    AVG SIMS AVAILABE

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    Idea Airtel Smart Vodafone

    6067

    4493

    3433

    2798

    AVG BALANCE AVAILABLE

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    Distribution Channel ofIdea

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    Distribution channel of idea

    Introduction

    Distribution is all about getting your product/service to the right people at the right time with special

    consideration for profit and effectiveness. Successful marketing does not end when a business has

    developed a product/service and has found its appropriate target audience with a view to selling it at

    the 'right price'.

    The next issue that needs to be faced is how they are going to distribute and sell this product/service to

    these people- the consumers.

    When a product/service is purchased by a consumer, it may have been bought directly from the

    business, or it may have been through a number of intermediaries (wholesaler, retailer, etc):

    theseareknownasdistributionchannels.

    Small businesses need to acknowledge the different types of distribution channels to utilize sales

    potential. After reading the article, you may learn that you could increase sales or profit by using a

    different distribution channel to the one that you currently use.

    Distribution channels are influenced largely by the type and size of the business and so some of the

    channels explained may not be feasible for your particular business.

    Consequently, you may take note that these channels could be adopted in the future to accommodate

    for any changes and to help your business grow.

    http://www.bizhelp24.com/marketing/how-why-to-price-your-products-successfully-7.htmlhttp://www.bizhelp24.com/marketing/how-why-to-price-your-products-successfully-7.htmlhttp://www.bizhelp24.com/marketing/how-why-to-price-your-products-successfully-7.htmlhttp://www.bizhelp24.com/marketing/how-why-to-price-your-products-successfully-7.html
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    Distribution Strategy

    And trusted to act Distribution strategy is influenced by the market structure, the firm's objectives, and

    its resources and of course itsoverall marketing strategy. All these factors are addressed in the section

    on selecting Distribution Channels.

    The first strategic decision is whether the distribution is to be: Intensive (with mass distribution into all

    outlets as in the case of confectionery); Selective (with carefully chosen distributors e.g. specialty goods

    such as car repair kits); or Exclusive (with distribution restricted to up market outlets, as in the case of

    Gucci clothes).

    The next strategic decision clarifies the number of levels within a channel such as agents, distributors,

    wholesalers, retailers. In some Japanese markets there are many, many intermediaries involved.

    Next comes a sensitive strategic decision whether to go single channel or multi-channel. Some

    producers, like Manchester United FC, use multi-channels - they use many different routes, direct and

    indirect, to bring their products to their customers. Multi-channel Systems like this are common where

    intensive distribution is required. So direct marketing is combined with indirect marketing through

    intermediaries.

    Then comes the next level of strategic decisions concerning strategic relationships and partnerships.

    Two common strategies are Vertical Marketing Systems and Horizontal Marketing Systems.

    Vertical Marketing Systems involve suppliers and intermediaries working closely together instead of

    against each other. They plan production and delivery schedules, quality levels, promotions and

    sometimes prices. Resources, like information, equipment and expertise, are shared. The system is

    usually managed by a dominant member, or 'channel captain'. VMS is more flexible than vertical

    integration where the manufacturer actually owns the distribution channel, for example, Doctor

    Martens boot manufacturers own their own retail store.

    Horizontal Marketing Systems occur where organizations operating on the same channel level (e.g. two

    suppliers or two retailers) co-operate. They then share their distribution expertise and distribution

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    channels. This can speed up the time taken to penetrate the market. There is room for creative alliances

    here. See Southwestern Bell's alliance with Granada TV Shops in the Hall Of Fame.

    Resources available affect distribution strategy. Who can handle outbound logistics, marketing and

    sales, and servicing? Can the supplier afford to deliver small quantities, can it provide more trucks, can

    its sales force 'push' products into national retail chains? Can the organization deal with thousands,

    maybe even millions of customers - can it cope? Does it want to devote huge resources here or would it

    prefer to utilize someone else's resources in return for a slice of the profits?

    Difficult marketing dilemmas which make distribution strategy both critical and interesting. The sections

    on Distribution Channels explore this in more detail.

    Selecting members within a channel

    Having decided to go through intermediaries the next question is whether to use agents or distributors

    and also how many. Unlike distributors, agents don't hold stocks - they only act as sales agents finding

    customers, collecting orders and passing them on to the supplier in return for a percentage commission.

    How would you select a distributor or an agent? Here are some criteria:

    1. Market Coverage, 2. Sales Forecast, 3. Cost, 4. Other Resources, 5. Profitability, 6. Control, 7.

    Motivation, 8. Reputation, 9. Competition, 10. Contracts

    1. Market Coverage: - does the profile of existing customers match your target market profile? - is the

    number of customers big enough to meet the required distribution penetration? - is the existing sales

    force big enough to cover the territory? - are they dependant on a single individual? - are the existing

    delivery fleet and warehouse facilities adequate?

    2. Sales Forecast: How many can they sell? What are their forecasts based upon? Do they give a 'best,

    worst and average' forecast? Will they invest in large stock commitment? Do they have budgets to run

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    promotions? Some suppliers even ask their distributors for a marketing plan showing how they intend to

    market the supplier's products.

    3. Cost: What will it cost in terms of discounts, commissions, stock investment and marketing support?

    4. Other Resources: Does the target market require anything special such as technical advice,

    installation, quick deliveries, and instant availability? If so can the distributor provide it?

    5. Profitability: How much profit will the distributor generate for the supplier?

    6. Control: Do they have a reporting system in place? How do they deal with problems? How often is

    review meetings scheduled? Can you influence the way they present your products?

    7. Motivation: Does the agent or distributor convey a sense of excitement and enthusiasm about the

    product? What about its sales force - what's their reaction?

    8. Reputation: Has it got a good track record? This includes the number of years in business, growth and

    profit record, solvency, general stability and overall reliability. Is it dependant on one key player?

    9. Competition: Do they distribute any competitor's products?

    10. Contracts: Some distributors demand exclusivity. Some agreements tie the supplier in for certain

    periods of time. Check for flexibility in case things go wrong.

    The bottom line is: Can the agent or distributor be motivated, controlled and trusted? Motivated to sell

    your product among a range of others. Controlled to back results feed or change strategy if requested.

    As a reliable ambassador of your product?

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    Motivating Channel Members

    Imagine these three scenarios:

    You are a producer of 'Grand Pens' a brand of fountain pens.

    A customer seeks advice from a pen shop on which pen to buy and the retailer strongly recommends

    yours.

    A customer asks a retailer, who stocks your pen, for another brand called 'Bad Pens'. The retailer

    recommends and offers your pen as superior.

    A retailer actively solicits business for you by asking customers buying other products to come and have

    a look at the exquisite 'Grand Pen'.

    This retailer is obviously very motivated. 'Mindshare', as it is called in the USA, has to do with how

    important your product is in the distributor's mind relative to the other lines they carry. Winning the

    battle for the distributor's share of mind can be more important than many other marketing strategies.

    It applies in industrial markets and consumer markets where intermediaries play important roles in the

    distribution channel.

    In reality, maintaining continually high levels of motivation among intermediaries presents a challenge.

    It requires a reasonable quality product, creative promotions, product training, joint visits between

    producer and distributor, co-operative advertising, merchandising and display.

    Most of these apply to agents as much as distributors and retailers.

    Keeping the intermediary stimulated is important. Positive motivators, like sales contests are preferred

    to negative motivators like sanctions such as reduced discounts and the threat of terminating the

    relationship. A positive reward works better than a negative punishment. Ideally there should be a

    shared sense of responsibility - a partnership - a strategic partnership. The supplier and intermediary are

    there to help each other. Vertical Marketing Systems are a good example.

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    Clear communications, covering sales goals, review meetings, reporting procedures, marketing strategy,

    training, market information required, suggestions for improvements, all help. Regular contact through

    visits, review meetings, dinners, competitions, newsletters, thank you letters, congratulatory awards all

    help to keep everyone working closely together.

    These are all non-financial incentives which provide a form of psychic income as opposed to financial

    income. That's not to say that financial incentives aren't useful motivators, it just means that there are

    other motivations there too. In fact the money spent on financial incentives is often spent more

    effectively when the sales person is rewarded with a plaque, a gold pen or a holiday in the Bahamas

    rather than just the cash which tends to get soaked up and lost in a sea of ordinary household daily

    expenditure.

    Non cash rewards appeal to the higher levels of Maslow's Hierarchy of Needs - belonging, esteem and

    self actualization.

    Despite this, conflict can occur when too many distributors are appointed within close proximity of each

    other, or the producer engages in a multiple channel strategy of direct marketing as well as marketing

    through intermediaries.

    Carefully motivating distributors is vital if goods are to flow smoothly through the channel and reach

    satisfied customers

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    Sales Organization structure

    Sales Head(Circle office)

    ZBM (GwaliorZone)

    ASM (Centre)

    TSM/TSEs

    ASM (North)

    TSM/TSEs

    ASM (South)

    TSM/TSEs

    ASM ( West)

    TSM/TSEs

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    Distribution channel of idea in Varanasi

    Distributor point

    of Varanasi

    Each Distributor

    share

    Each target

    3.00 cr. per month 2800

    1.D.B ENTERPRISES 4,28,571 2800

    2KRISHNA SALES 4,28,571 2800

    3MAA VAISHNAB

    ENTERPRISES

    4,28,571 2800

    4JAI SHIV 4,28,571 2800

    5R.R ENTERPRISES 4,28,571 2800

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    6RAJ SALES 4,28,571 2800

    7MAYA 4,28,571 2800

    Distributor Operations

    Distributor Revenue/ month Activations /month Retailers covered

    Maya Agency Rs 75 Lakhs 1600 325

    D B Enterprises Rs 1.25 cr

    Raj Agency Rs 40 Lakhs

    Understanding operation at distributors end (Prism, Activation)

    Runnersfor collection documents

    FOS- collection, delivery, relationship building, communicating new schemes on day to day basis.

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    Billing system for Retailers

    Plan 99 175 105 245

    Claim per

    sim

    20 Rs 35Rs Tie-up

    Slabs Activations Billing 99 175

    A 50 55 85 105 145 50 35

    B 25 to 49 55 85 105 145 40 25

    C 10 to 24 55 105 130 175 30 10

    D 1 to 9 55 105 130 175 20 0

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    Channel Management

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    Channel management

    Channel Management. Yet another sales and marketing phrase that is thrown around like everyone

    knows what it means. But so few companies really comprehend channel management in a way thatreally helps them. Its really no wonder. Sales channels (being the conduits by which we distribute our

    products to the end-user) come in many shapesfrom direct, to the web, to the traditional retail

    environment. And, were just doing whatever we can to get any business from any of them! But is that

    the most efficient and effective approach?

    Thats where Channel Management comes in. Channel management, as a process by which a company

    creates formalized programs for selling and servicing customers within a specific channel, can really

    impact your businessand in a positive way! To get started, first segment your channels by like

    characteristics (their needs, buying patterns, success factors, etc.) and then customize a channel

    management program that includes:

    1. Goals:-Define the specific goals you have for each channel segment. Consider your goals for

    the channel as whole as well as individual accounts. And, remember to consider your goals for

    both acquisition and retention.

    2. Policies: -Construct well-defined polices for administering the accounts within this channel.

    Be sure to keep the unique characteristics of each segment in mind when defining policies for

    account set up, order management, product fulfillment, etc.

    3. Products: - Identify which products in your offering are most suited for each segment and

    create appropriate messaging. Also, determine where your up sell opportunities lie.

    4. Sales/Marketing Programs:-Design support programs for your channel that meet THEIR

    needs, not what your idea of their needs are. To do this, you should start by asking your

    customers within this segment, how can we best support you in the selling and marketing of

    our products? That being said, the standard considerations are product training, co-op

    advertising, seasonal promotions, and merchandising. Again, this is not a one-size fits all, so be

    diligent about addressing this segments SPECIFIC needs in these areas.

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    Defining a channel management strategy for each segment allows you to be more effective within each

    segment, while gaining efficiency at the same time. Still, maintaining brand consistency across all

    channel segments is critical to your long-term success. So find a good balance between customization

    and brand consistency and youll be on your way to successful channel management.

    Visit with TSM

    We met with distributor & FOS and made understand that how to deal with retailers and how to sale

    our product and how to follow our channel perfectly and effectively and how to gave them satisfaction

    with company polices.

    Areas Covered: Bada ,Murar,Hazira

    23 retailers covered

    Tasks Handled: Relationship Building, Issues Handling, Report generation, details about new

    schemes, Target achieved status

    Observations:

    Idea Branding poor at some stores ( Visit by Airtel Sales Head)

    Process started

    We went to distributor point where we saw there were some people (FOS & distributor) who had a

    chain by which they worked together. Every FOS had particular market in that market they collected

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    money and gave them sim card and paper Boucher& e-Boucher and gave that money to the distribute

    point.

    Customer Interaction when visit with FOS

    We went to new retailer with FOS and convince them to joint with telecom market, and gave them

    some beautiful offer to started their business with low amount

    Tasks: Distribution of Stocks (SIMs, Vtopup), revenue collection, issue handling, collecting

    documents

    Areas Covered:fruit mandi, Hazira

    Description of the process started

    This is the description of the process of distribution of the SIM and recharches and during the whole

    process our work was to manage the channel and by managing the channel to increase the revenue of

    the outlets.

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    Idea Cellular

    Agency (NSBBPO solutions)

    Distributor

    FOS

    Retailers

    Customers

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    Observation and

    Findings

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    OBSERVATION & FINDINGS

    55% of the people use only mobile, and 40% of respondents use both the services & only 5%

    people use the telephone service. It shows the popularity of cellular phone services.

    34% of respondents are using the idea services, which is the highest percentage of users of

    cellular phone. Airtel takes 2ndplace in Varanasi with 28% of users. Then comes reliance and

    BSNL, and tata indicom having least customers in the Bhopal.

    Prepaid service is most popular in the cellular services with 95% of customers. The remained

    uses postpaid services.

    In current situation 73% of respondents are using lifetime plans, where the rest are using

    general plan of the cellular companies.

    64% of respondents are satisfied with the call rates of the lifetime plans; it is because telecom

    companies have slashed their call rates few months ago. Still in this situation 36% of

    respondents did not satisfy with the call rates which service they are using.

    In the lifetime plan of cellular companies most of the respondents are using this service because

    of its validity period with 83% of answer. Where 15% of people like this services because of its

    call rates.

    78% of customer satisfied with the lifetime plans of cellular companies, and which are not

    satisfy with the service they are mostly BSNL and TATA indicom users.

    Most of the people are using lifetime services because of money savings with the percentage of

    48. Where 29% of people like this service because of the facilities provided by the operators.

    And 23% of people are using this service because of incoming only.

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    CONCLUSIONS

    In Varanasi it is found that idea is the market leader in the lifetime plan segment. People like the lifetimeplans provided by the companies. And airtel having 2ndhighest customers in Varanasi.

    TATA indicom having least customers in Varanasi, where Reliance and BSNL having almost equal percent

    of customer

    But they are not aware about the bound of cellular companies with TRAI, that cellular companies can

    deliver their services till their license have validity, they have to renew it for providing further service.

    SUGGESTIONS

    In the lifetime plans, cellular companies should reduce the call rates.

    They should provide other facilities like massage and minimum call rates in the same network.

    They should make aware the customers that they have limited license period.

    They should not take other hidden charges.

    There should not be any compulsion that customer have to recharge their card in 180 days with

    certain amount. This is the main drawback of the lifetime validity plan.

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    Bibliography

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    BIBLIOGRAPHY

    Books:

    Philip Kotler, marketing management prentice Hall of India Pvt. Ltd. New Dehli.

    C. R. Kothari Research methodology, vishwa publication, New Delhi.

    Saxena Rajan marketing management Tata McGraw-hill publication Co. Ltd. New Delhi.

    H. V. Verma marketing of services Global business press, New Delhi.

    Business today magazine of February issue, 2008.

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    Web Resources:

    www.trai.gov.in

    http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx

    http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_home.jsp

    http://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdea

    http://www.bsnl.co.in/about.htm

    http://www.bsnl.co.in/service/tariff_excel_pre.htm

    http://210.212.144.243/utility/tariff.htm

    http://www.trai.gov.in/trai/upload/PressReleases/15/pr16jan06.pdf

    www.airtel.in

    http://www.rcom.co.in/webapp/Communications/rcom/index.jsp

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