8/13/2019 29331480-Idea-Report

1/69

SUMMER TRAINING PROJECT REPORT ONON

TELECOM MARKET SHARE AND CHANNELMANAGEMENT

Submitted in partial fulfillment of the requirement forA!ard of

Master of Business Administration

Submitted to: Submitted by:

Mr. Satish Chandra Tiwari Arun Yadav

MBA 3rd Semester

Roll No.: !"#"$$$%

Page 1

8/13/2019 29331480-Idea-Report

2/69

ACKNOWLEDGEMENT

This report bears the imprint of many people. Right from

the experienced staff of Idea Cellular Ltd,to the staffJEEVANDEEP INSTITUTE OF MANAGEMENT &TECHNOLOGY VARANASI without whose support andguidance I would have not got the unique opportunity tosuccessfully complete my internship in this esteemedorganization.

I would like to thank Mr. Aal!eet S"#$%,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, Vara#a". !lso I am indebted for

the rich guidance knowledge and suggestions provided

by my guide Mr. Mr. Sat"% C%a#dra T"'ar" who took

sincere efforts and illustrated the "arketing #oncept and

channel development in Idea Cellular Ltd with their

vast knowledge in the field which helped me in carrying

out my internship.

$ast but not least I also thank all those people whom I

met in the industry during my internship and helped me

to accomplish my assignments in the most efficient and

effective manner.

Date: Arun Yadav

Place: Varanasi

Page 2

8/13/2019 29331480-Idea-Report

3/69

Tale !" C!ntent

1)Objective of the

project....................................5-6

2)Overview of telecom

indutr!."-1"

#elecom $ndutr! in $ndia

%itor! of $ndian #elecommunication

&laification of #elecommunication ervice

#he 'e! pla!er in the #elecom (aret in $ndia

*ubcriber

(aret *hare of the #elecom &ompan! in $ndia

+)$ntroduction of $dea

&ellular1,-26

$ntroduction

Our *ervice rea

tablihed *ervice rea

/ew *ervice rea

%olding

Page +

8/13/2019 29331480-Idea-Report

4/69

(iion

"oard of Dire#tor

&orporate 0eaderhip #eam

&ircle %ead

rand $nformation

)3eearch

(ethodolog!.2"-+1

Definition of Research

#!pe and #echni4ue

#ool ued

0imitation of the tud!

5)ata nal!i $nterpretation.+2-+7

Questionnaires for the customer

6)#elecom (aret *hare in

8aranai..9-5

Page

8/13/2019 29331480-Idea-Report

5/69

") itribution channel of

idea.6-56

$ntroduction

itribution *trateg!

*electing member within a channel

(otivating &hannel (ember

*ale Organi:ation tructure

itribution channel of idea in 8aranai

8iit with #*(

&utomer $nteraction when viit with ;O*

,) &hannel

(anagement..5"-61

7) Obervation and

;inding62-6

19)

ibliograph!.6

5-6"

Page 5

8/13/2019 29331480-Idea-Report

6/69

O(!e)t"*e O+ t%e

Pr!e)t

O#JECTIVES O$ T%E PROJECT

1. #o find out the perception of the general people toward the land line (obile

phone.

Page 6

8/13/2019 29331480-Idea-Report

7/69

2. #o find out the telecom maret hare of different companie in 8aranai.

+. #o find out the conumer atifaction toward the different plan offered b! the

compan!.

. (anaging the ditribution channel of idea cellular.

Page "

8/13/2019 29331480-Idea-Report

8/69

O*er*"e' +

tele) "#dutr-

Telec!& Industr' in India

#he telecom indutr! i one of the fatet growing indutrie in $ndia. $ndia ha

nearl! 299 million telephone line maing it the third larget networ in the world

Page ,

8/13/2019 29331480-Idea-Report

9/69

after &hina and ? $ndian telecom indutr! ha the

highet growth rate in the world.

- (uch of the growth in ia Pacific =irele #elecommunication (aret i purred

b! the growth in demand in countrie lie $ndia and &hina.

- $ndia@ mobile phone ubcriber bae i growing at a rate of ,2.2>.

- &hina i the bigget maret in ia Pacific with a ubcriber bae of ,> of the

total *ubcriber in ia Pacific. &ompared to that $ndiaA hare in ia Pacific

(obile Phone maret i 6.>. &onidering the fact that $ndia and &hina have

almot comparable population? $ndiaA low mobile penetration offer huge

cope for growth.

%ist!r' !" Indian Telec!&&unicati!ns

*tarted in 1,51 when the firt operational land line were laid b! the government

near &alcutta Beat of ritih power). #elephone ervice were introduced in $ndia in

1,,1. $n 1,,+ telephone ervice were merged with the potal !tem. $ndian 3adio

#elegraph &ompan! B$3#) wa formed in 172+. fter independence in 17"? all the

foreign telecommunication companie were nationali:ed to form the Pot?#elephone and #elegraph BP##)? a monopol! run b! the governmentC (initr! of

&ommunication. #elecom ector wa conidered a a trategic ervice and the

government conidered it bet to bring under tateC control.

$n 1779? telecommunication ector benefited from the general

opening up of the econom!. lo? eDample of telecom revolution in man! other

countrie? which reulted in better 4ualit! of ervice and lower tariff? led $ndian

polic! maer to initiate a change proce finall! reulting in opening up of telecomervice ector for the private ector. /ational #elecom Polic! B/#P) 177 wa the

firt attempt to give a comprehenive roadmap for the $ndian telecommunication

ector. $n 177"? #elecom 3egulator! uthorit! of $ndia B#3$) wa created. #3$ wa

formed to act a a regulator to facilitate the growth of the telecom ector.

Page 7

8/13/2019 29331480-Idea-Report

10/69

#elecommunication ector in $ndia can be divided into two

egmentE ;iDed *ervice Provider B;*P)? and &ellular *ervice. ;iDed line ervice

conit of baic ervice? national or dometic long ditance and international long

ditance ervice. #he tate operator B*/0 and (#/0)? account for almot 79 per

cent of revenue from baic ervice. Private ector ervice are preentl! available

in elective urban area? and collectivel! account for le than 5 per cent of

ubcription. %owever? private ervice focu on the buineFcorporate ector?

and offer reliable? high- end ervice? uch a leaed line? $*/? cloed uer group

and videoconferencing.

&ellular ervice can be further divided into two categorieE Global *!tem for(obile &ommunication BG*() and &ode iviion (ultiple cce B&(). #he G*(

ector i dominated b! irtel? 8odafone-%utch? and $dea &ellular? while the &(

ector i dominated b! 3eliance and #ata $ndicom. Opening up of international and

dometic long ditance telephon! ervice are the major growth driver for cellular

indutr!. &ellular operator get ubtantial revenue from thee ervice? and

compenate them for reduction in tariff on airtime? which along with rental wa the

main ource of revenue. #he reduction in tariff for airtime? national long ditance?

international long ditance? and handet price ha driven demand.

$ndia added 1+.,2 million new mobile ubcriber in ;ebruar! 97? down from 15.1

million a month earlier? according to $ndian telecom regulator #3$. $ndiaA total

number of mobile ubcriber roe to +"6.12 million at end-;ebruar! from +62.+9

million at the end of Hanuar!.

=hile &hina added 1,.55 million new mobile phone ubcriber in the firt two

month of 2997 and total wirele ubcriber bae tood at 657.", million a of end-

;ebruar! 2997. &hina (obile ubcriber ent 69".1 billion *(* lat !ear? up b!

over 199 billion from the lat !ear? and downloaded more than "6 million full muic

trac.

Page 19

8/13/2019 29331480-Idea-Report

11/69

$ndiaA G*( ubcriber totaled 2"".5 million b! end-;ebruar!? accounting for nearl!

"5> of total wirele maret hare. ccording to figure releaed b! the &ellular

Operator ociation of $ndia B&O$)? G*( pla!er added 19., million new

ubcriber in (arch? taing total G*( ubcription for the fical !ear to 2,,.+

million. #he number eDclude ubcription for 3eliance &ommunication? the &(

ervice provider that recentl! launched G*( ervice? becaue the compan! doe

not reveal G*( number eparatel!. $f the etimate of 2.5 million to 2." million

G*( ubcriber for 3eliance &ommunication are added? the total monthl!

increae for G*( ubcription will be 1+.5 million.

t thi rate? $ndiaA G*( ubcriber bae i growing at more than double the

monthl! growth rate of &hina? which i adding around 6 million cutomer ever!

month.

I#hough (arch ha more da! and companie puh ale at the end of the financial

!ear? we eDpect to ee monthl! incremental growth of 1 to 15 million conumer in

2997-19. Our etimate i that mobile penetration will go up from +5> currentl! to

59> b! the end of thi financial !ear?J aid #8 3amachandran? &O$ ecretar!-

general.

&O$ ha predicted that $ndia will have around 599 million G*( ubcriber b! the

end of 2997-19 and over ,99 million b! 2912. #he countr! would hit the one billion

maret in a few !ear after that.

Page 11

8/13/2019 29331480-Idea-Report

12/69

#hi table how the preent tatu of G*( pla!er in $ndia? where hari irtel i

leading then at 2nd poition 8oafone-ar group i preent after that harat

*anchar /igam 0imited with cutomer of &r i preent. $dea &ellular with

+922"77 i preent then ircel? 3eliance G*(? (#/0 and P0 are at 5 th? 6th? "thand

,thpoition repectivel!.

#he pie chart below how that percentage of maret capture in term of cutomer.

Page 12

COMPANY USERS AT MARCH //0

$3#0 7+72+2,

8O;O/ 6,"6,77,

*/0 66,97

$ +922"77

$3&0 1,",+25

30$/& #0&O( 11151"6

(#/0 91"66"6

P0 9216211

8/13/2019 29331480-Idea-Report

13/69

-irtel+5>

8odafone

25>

*/0

1">

$dea16>

3eliance

>

(#/0

2>P0

1>

Mar&et Ca'ture by tele(om 'layers

#he &hart how that in G*( ervice +5> of the total maret captured b! irtel?25> maret captured b! 8odafone? 1"> maret captured b! */0? 16> maret

captured b! $dea and then ret are follow.

(aret reearch firm Gartner $nc. ;orecat $ndia will pend "+7 billion rupee

BK16.+ billion) on telecom ervice and e4uipment in 2996? up 2".+ percent from

thi !ear. $!recasted Gr!(t) !" Indian

Telec!& S*endin+ T)r!u+) ,--.:/

Page 1+

http://www.lightreading.com/complink_redirect.asp?vl_id=7426http://www.lightreading.com/complink_redirect.asp?vl_id=7426

8/13/2019 29331480-Idea-Report

14/69

Revenue !" Telec!& Industr' in India:/

&ontinuing it robut growth? the $ndian telecom indutr! aw it gro revenue

growing 2.6 percent to more than 3.9? 999 crore in the 4uarter ending (arch +1?

aid the ectoral watchdog here on (onda!.

ccording to the #elecom 3egulator! uthorit! of $ndia B#3$)? the gro revenue of

the telecom ector for the period under review tood at 3.9? .66 crore? a

againt 3.+7? 9, crore in the previou 4uarter. #he tate-owned operator --

harat *anchar /igam and (ahan agar #elephone /igam -- together earned 3.19?

577 crore? while private pla!er raed in 3.27? ,6 crore. #3$ aid $ndiaC total

ubcriber bae reached 27."2 million b! (arch-end? a againt +,."7 million for

the 4uarter ending ecember? regitering a growth of 11.6, percent.

#ele-denit!? too? increaed +6.7, percent from ++.2+ percent in the previou

4uarter.

#he ubcriber bae of wirele and wire line increaed to +71."6 million and +".76

million repectivel!. %owever? rural wire line decreaed from 19.6, million to 19.5,

million? a decreae of 9.7+ percent. ccording to the watchdog? the 3P

*ourceE Gartner $nc.

8/13/2019 29331480-Idea-Report

15/69

revenue per uer) continued to fall? decreaing 6.,2 percent from 3.229 in

ecember-end to 3.295 in (arch.

#he number of $nternet wire line ubcriber increaed 5.+ percent to 1+.5 million

in the fourth 4uarter a againt 12.,5 million in the ame period a !ear before.

*/0 (#/0

26>

Private Pla!er

">

)er(enta*e of Total Revenue in +!

Sales !" cellular c!&*anies in India 0Jun -.1:/

2,1,

799

+9+1

19,5++9

$dea -irtel 3eliance (#/0 *pice

Sales in Crore

Page 15

8/13/2019 29331480-Idea-Report

16/69

Gr Pr+"t )ellular )1a#"e "# I#d"a 2Ju# /0345

"15

9+2

12+

2629

2,

$dea -irtel (#/0 3eliance *pice

Pr!"it In Cr!re

Classi"icati!n !" Telec!&&unicati!n services

56 aic ervice

,6 &ellular ervice

76 $nternet *ervice Provider B$*P)

T)e 8e' *la'ers in t)e Telec!& Mar9et in India

Cellular Service *r!vider:

56 #SN

,6 Airtel

76 V!da"!ne

26 Idea

Page 16

8/13/2019 29331480-Idea-Report

17/69

36 Reliance

46 Tata indic!&

;6 Aircel

8/13/2019 29331480-Idea-Report

18/69

#he wire line egment ubcriber bae tood at +7."+ million with a decreae of

9.16 million at the end of ugut 299". &ircle wie wire line ubcriber bae of

ervice provider i given at following chart.

Mar9et S)are !" t)e Telec!& C!&*an' in India

Page 1,

8/13/2019 29331480-Idea-Report

19/69

Page 17

8/13/2019 29331480-Idea-Report

20/69

I#trdu)t"#O+

Idea

Cellular

INTRODUCTION

Page 29

8/13/2019 29331480-Idea-Report

21/69

$ndiaC leading G*( (obile *ervice operator? $ &ellular ha licene to

operate in 11 circle. =ith a cutomer bae of over 1" million? $ &ellular ha

operation in elhi? (aharahtra? Goa? Gujarat? ndhra Pradeh? (adh!a Pradeh?

&hattigarh?

8/13/2019 29331480-Idea-Report

22/69

frontrunner in introducing revolutionar! tariff plan? $ &ellular ha the

ditinction of offering the mot cutomer friendl! and competitive Pre Paid offering?

for the firt time in $ndia? in an increaingl! egmented maret. ;rom baic voice

*hort (eage *ervice B*(*) ervice to high-end value added ervice uch a

(obile #8? Game etc - $ i een a an innovative? cutomerfocuedbrand.

$ C=omenC &ardC cater to the pecial need of women on

the move? and CNouth &ardC cover the emerging !outh egment. $ C(! GangC -

the widel! popular communit! uer group product recentl! bagged the pretigiou

CGolden Peacoc ward 299,C under the (ot $nnovative Product categor! at the

L17th =orld &ongre on #otal ualit!L.

brand nown for man! firt? $ wa the firt to launch

GP3* and G in $ndia. $ ha partnered with 3eearch in (otion B3$() to offer

lacberr! ervice on it networ. $ C/et *etterC- Plug Pla!? G

enabled

8/13/2019 29331480-Idea-Report

23/69

#he $ndian telecommunication maret for mobile ervice i divided into 22

L*ervice reaL claified into L(etroL? &ategor! LL? &ategor! LL and &ategor! L&L

ervice area b! the Government of $ndia. #hee claification are baed

principall! on a *ervice reaC revenue generating potential. Our 1" operational

*ervice rea are broen up into tablihed and /ew *ervice rea

Estalis)ed Service Areas

#he etablihed ervice area are elhi? ndhra Pradeh? Gujarat? (aharahtra?

%ar!ana? 'erala? (adh!a Pradeh and

8/13/2019 29331480-Idea-Report

24/69

rand $dea wa launched in 'arnataa and Punjab?

through the ac4uiition of *pice &ommunication. $dea launched it ervice in

(umbai and ihar in 299,. #he (umbai launch wa the larget (etro &it! launch in

$ndia. $n ihar? $dea ac4uired 599?999 ubcriber in jut over 199 da!.

%!ldin+

$nitiall! the irla? the #ata and ## =irele each held one-third e4uit! in the

compan!. ut following ## =ireleC merger with &ingular =irele in 299?

&ingular decided to ell it +2.7> tae in $dea. #hi tae wa bought b! both the

#ata and irla at 16.5> each.

#ataC fora! into the cellular maret with it own

ubidiar!? #ata $ndicom? a &(-baed mobile provider? cropped difference

between the #ata and the irla. #hi dual holding b! the #ata alo became a

major reaon for the dela! in $dea being granted a licene to operate in (umbai.

#hi wa becaue a per epartment of #elecom BO#) licene norm? one promoter

could not have more than 19> tae in two companie operating in the ame circle

and #ata $ndicom wa alread! operating in (umbai when $dea filed for it licene.

#he irla thu approached the O# and ought it

intervention? and the #ata replied b! a!ing that the! would eDit $dea but onl! for agood price. On pril 19? 2996? the dit!a irla Group announced it ac4uiition of

the ,.1,> tae held b! the #ata at 3. 9.51 a hare amounting to 3. .96

billion. =hile 15> of the ,.1> tae wa ac4uired b! dit!a irla /ovo? a

compan! in-charge of the irlaC new buine initiative? the remaining tae wa

ac4uired b! irla #(# holding Private 0td.? an 8 irla famil! owned compan!.

&urrentl!? irla Group hold 7,.+> of the total hare of the compan!.

$dea ha uccefull! launched + more new circle Btate) in $ndia vi:. 3ajathan?

%imachal Pradeh and

8/13/2019 29331480-Idea-Report

25/69

Missi!n

8e' Pe!*le

Board of Directors

(r. 'umar (angalam irla B&hairman)

*mt. 3ajahree irla

(r. *aurabh (ihra

(r. *anjeev ga B(anaging irector)

(r. run #hiagarajan

(. #arjani 8ail(r. (ohan G!ani

(r. Gian Praah Gupta

(r. 3.&. hargava

(r. P. (urari

(r. iwajit . *ubramanian

r. %ana =ija!auri!a

Page 25

8/13/2019 29331480-Idea-Report

26/69

Mana+e&ent Tea&

C!r*!rate eaders)i* Tea&

(r. *anjeev ga? (anaging irector

(r. ha!a (oondra? &hief ;inancial Officer

(r. nil '. #andan? &hief #echnolog! Officer

(r. Praah '. Paranjape? &hief $nformation Officer

(r. Pradeep *hrivatava? &hief (areting Officer

(r. /avanit /ara!an? &hief *ervice eliver! Officer

(r. 8ina! '. 3a:dan? &hief %uman 3eource Officer

(r. 3amjet '. (uarji? &hief &orporate ffair Officer

(r. 3ajeh '. *rivatava? &hief (aterial Procurement Officer

(r. mbrih Hain? irector - Operation

(r. %imanhu 'apania? irector Operation

#rand In"!r&ati!n6

The brand Idea

$t i almot impoible to diintegrate brand $dea from the corporate $dea. rand

value are the compan! value and vie vera.

rand 8iionE $t goe without a!ing that the brand viion of idea mirror the

compan!A viion. #he brand miion tatement i...... #o be the mot cutomer-

Page 26

8/13/2019 29331480-Idea-Report

27/69

focued mobile ervice brand? continuoul! innovating to help liberate our

cutomer from the hacle of time pace.

IDEA - Brand Values

$nnovate. *timulate. 0iberate....

$t i thee brand value? which have made u a formidable pla!er in the telecom

indutr!. $nnovation that timulate the cutomer and liberate him from the

hacle of time and pace are the core of our brand. #hi i what we trive for.

/othing more? nothing le? nothing ele.

IDEA - Brand Mission

The ,ndia foot'rint ,dea

n!where connectivit! - bringing $ndia cloer.

The Technology Advantage Idea

#omorrowC technolog! to enrich toda!.

The ustomer !ocus Idea

(ae a ingle interaction a lating relationhip.

The Em"loyee !ocus Idea

/urture the root that nurture our idea.

#rand Initiatives

Page 2"

8/13/2019 29331480-Idea-Report

28/69

Our aim? through media bu!ing and planning? i to create !ear round impact. =ith

the objective of trengthening our brand? we wor with trategic communication

partner on campaign lie ponorhip of the $dea $nternational $ndian ;ilm

cadem! award and the televiion program I$dea 3oc $ndiaJ? I$dea *tar *ingerJ

and I$dea ndhra $dolJ. =e ee engagement with ubcriber on a variet! of

level? from major celebrit! fahion how to mall local event timed to coincide

with new product offering.

*ince ugut 299+? we have commiioned a rand #rac

$ndeD *tud! to evaluate the health of our brand. #he rand #rac $ndeD *tud! i a

monthl! tud! conducted b! #/*? a mareting conultant engaged b! u to

evaluate our brand uing face-to-face interview on a random ample of mobile

uer a well a thoe intending to purchae mobile within the neDt three month.ccording to the tud! our brand i perceived a IreliableFtrutworth!J and one that

Ioffer cheaper and good promotional offerJ. =e have improved our rating in the

rand #rac $ndeD calculated b! the tud! in the pat !ear reflecting? we believe?

the growing trength of our brand.

#he main communication medium for the $dea brand i

televiion? where we ee trategic $dea brand coverage in variou format.

illboard and hoarding are ued a a econdar! medium? cutomi:ed for pecific

regional preference to communicate effectivel! at the local level. =e alo ue

other ma communication media uch a the pre and radio to communicate price

plan and other tactical and cutomer information.

ll our e! initiative are ubjected to a rigorou teting and

launch proce to enure accountabilit! for all advertiing pend and improve the

chance of ucce of a new product. #hi proce i followed up with eDtenive

briefing of call center agent and ale peronnel and real-time tracing of the

impact of the communication and feedbac from ubcriber.

Page 2,

8/13/2019 29331480-Idea-Report

29/69

Reear)%

Met%dl$-

Page 27

8/13/2019 29331480-Idea-Report

30/69

Definition of Research

#he word reear)% i derived from the 0atin word meaning t 6#'. $t i a

!tematic and a replicable proce? which identifie and define problem? within

pecified boundarie. $t emplo! well-deigned method to collect the data and

anal!e the reult. $t dieminate the finding to contribute to generali:e able

nowledge. #he characteritic of reearch preented below will be eDamined in

greater detail later areE

*!tematic problem olving which identifie variable and tet

relationhip between them?

&ollecting? organi:ing and evaluating data.

0ogical? o procedure can be duplicated or undertood b! other

mpirical? o deciion are baed on data collected

3eductive? o it invetigate a mall ample which can be generali:ed to a

larger population

3eplicable? o other ma! tet the finding b! repeating it.

icovering new fact or verif! and tet old fact.

eveloping new cientific tool? concept and theorie? which would

facilitate to tae deciionQ

;or the proper anal!i of data imple tatitical techni4ue uch a percentage

were ue. $t help in maing more generali:ation from the data available. #he data

which wa collected from a ample of population wa aumed to be repreenting

entire population wa interet. emographic factor lie age? income and

educational bacground wa ued for the claification purpoe.

Page +9

8/13/2019 29331480-Idea-Report

31/69

Sa&*le si?e

;or carr!ing out an! reearch or tud! on an! ubject it i ver! difficult to cover

even 19> of the total population. #herefore the ample i:e ha to be decided for a

meaningful concluion. ;or deigning the ample i:e? it wa thought proper to

cover a ver! mall percentage of population in variou age group.

#he method ued for ample techni4ue wa non probabilit! convenience ampling

method. #hi method i ued becaue it i nown previoul! a to whether a

particular peron will be aed to fill the 4uetionnaire. &onvenient ampling i ued

becaue onl! thoe people will be aed to fill the 4uetionnaire that were eail!

acceible and available to the reearcher.

&onidering the contraint? it wa decided to conduct the tud! baed on ample

i:e of 199 people in pecific age group. *cientific method i not adopted in thi

tud! becaue of financial contraint and alo becaue of lac of timeM alo the

baic aim of doing the reearch i academic? hence mot convenient wa! i

elected.

TYPES @ TEC%NIUES

#he tud! conducted i a concluive decriptive tatitical tud!M the reearcher

come to the deciion which i precie and rational. #he tud! i concluive becaue

Page +1

8/13/2019 29331480-Idea-Report

32/69

after doing the tud! the reearcher come to a concluion regarding the poition of

the brand in the mind of repondent of different firm group. #he tud! i

tatitical becaue throughout the tud! all the imilar ample are elected and

group together. ll the imilar repone are taen together a one and their

percentage are calculated.

#hu? thi? concluive decriptive tatitical tud! i the bet tud! for thi purpoe

a it provide the necear! information which i utili:e to arrive at a concrete

deciion.

TOOS USED

#o now the repone $ have ued the 4uetionnaire method in ample urve!. $f

one wihe to find what people thin or now? the logical procedure i to a them.

#hi ha lead mareting reearcher to ue the 4uetionnaire techni4ue for

collecting data more than an! other method. $n thi method 4uetionnaire were

ditributed to the repondent and the! were aed to anwer the 4uetion in the

4uetionnaire. #he 4uetionnaire were tructured non-diguied 4uetionnaire

becaue the 4uetion? which the 4uetionnaire contained? were arranged in a

pecific order beide ever! 4uetion aed wa logical for the tud!? no 4uetion

can be termed a irrelevant.

#he 4uetionnaire? were non-diguied becaue the 4uetionnaire were contructed

o that the objective i clear to the repondent. #he repondent were aware of the

objective. #he! new wh! the! aed to fill the 4uetionnaire.

IMITATIONS O$ T%E STUDY

Page +2

8/13/2019 29331480-Idea-Report

33/69

#he reearch will be conducted in a limited area.

#he internet information can be irrelevant.

#ime will be a major contraint.

#he repondent will be limited o cannot be treated a a whole population.

#he repondent ma! be biaed.

ue to language problem it i poible that the repondent are not be able to

undertand the 4uetionnaire and can caue mileading reult.

Page ++

8/13/2019 29331480-Idea-Report

34/69

Data A#al-" &

I#ter1retat"#

Page +

8/13/2019 29331480-Idea-Report

35/69

Questionnaires for the customer

DATA ANAYSIS @ INTERPRETATION

56 =)ic) cellular service d! '!u useB

Page +5

#ata indicom 5

Option $er#enta%e of repondent

irtel +

&dea 2,

8/13/2019 29331480-Idea-Report

36/69

-irtel

+>

idea

2,>

3eliance

1">

*/0

16>

#-#- indicom

5>

,6 =)ic) service '!u r usin+B

Option Percentage of repondent

Prepaid 75

Potpaid 5

Page +6

8/13/2019 29331480-Idea-Report

37/69

26 Are '!u usin+ li"eti&e !r +eneral *lanB

Option Percentage of repondent

0ifetime "+

General 2"

lifetime

"2>

General

2,> 9>9>

3 Are '!u satis"ied (it) t)e li"eti&e *lan ()ic) '!u are usin+B

Page +"

8/13/2019 29331480-Idea-Report

38/69

Option Percentage of repondent

Ne ",

/o 22

N*

",>

/o

22>

9>9>

46 =)ic) "acilit' attracts '!u &!st in t)e li"eti&e *lanB

Option Percentage of repondent

&all rate 15

Page +,

8/13/2019 29331480-Idea-Report

39/69

(aage #ariff 1

/ight #ariff 1

8alidit!

,+

&all 3ate

15>

(aage

#arrif

1>

/ight #errif

1>8alidit!

,+>

;6 Rate !" t)e satis"acti!n level (it) t)e services !" '!ur *resent li"eti&e

*lanB

Option Percentage of repondent

;ull! atified 1

Page +7

8/13/2019 29331480-Idea-Report

40/69

*atified "

verage 2"

iatified ,

%ighl! diatified 2

;ull! atified

15>

*atified

51>

-verage

+9>

iatified

2>

%ighl! diatified

2>

,. =h! !ou choe lifetime planQ

Option Percentage of repondent

;or incoming purpoe onl! 2+

;or mone! aving ,

Page 9

8/13/2019 29331480-Idea-Report

41/69

;or the facilitie provided in the plan 27

;or incoming

purpoe onl!

2+>

;or mone! aving

,>

;or the facilitie

provided in the plan

27>

9>

Page 1

8/13/2019 29331480-Idea-Report

42/69

Tele) Mar6et

%are "#

Vara#a"

%ere we have prepared ome 4uetionnaire from the retailerA point of view and

tried to find out the maret hare of the following telecom indutr! in 8aranaiE

1. $dea

2. *mart

+. irtel

Page 2

8/13/2019 29331480-Idea-Report

43/69

. 8odafone

Findings:-

$n the urve! of 8aranai cit! found thi reult b! approaching different- different

retailer who deal in the communication product and find out reult in 8aranai cit!

with the help of 4uetionnaire. #hi finding i baed on onl! lat month reult

becaue we have to find out what i happened in lat month after new launch of

8odafone in 8aranai.

In c)art/5reult how that clearl! that over 59> of the retailer puhe idea to the

cutomer wherea irtel i alo good in 8aranai? +1> of the retailer puhe it.

C)art /, how about &utomer choice. $dea i leading here with 1> while

8odafone B+5>) how a great fight in thi becaue it i launch recentl! in 8aranai

and providing ome great offer to attract new cutomer for building itA reputation

and maret in 8aranai.

=hile irtel eem to be at +rdpoition with 22> of cutomer chooe it.

Page +

8/13/2019 29331480-Idea-Report

44/69

C)art/7how about the compan! which care mot cutomer and retailer? here

alo $dea ha a big lead over other G*( ervice provider with 61> of retailer told

idea i bet and ++> told irtel i bet while *mart i ver! poor and 8odafone i

new in maret o it i difficult to tell about 8odafone.

$dea

61>

-irtel

++>

*mart

> 8odafone

2>

M-ST CAR.

C)art /2how about (ot 3echarge old in lat month? becaue of a good maret

and leading in cutomer in 8aranai $dea lead with "+>. (ean "+> retail told

that $dea recharge the! ell mot in lat month wherea irtel and 8odafone

recharge old onl! at 12 and 1+ > hop.

Page

8/13/2019 29331480-Idea-Report

45/69

$dea

"+>

-irtel

12>

*mart

9>

8odafone

15>R.C/AR0. S-12

C)art/3how the total no of activation of *im in lat month. 8odafone ha done a

great job with 19+, activation at approD 59 hop becaue of new eDciting offer

B77 value voucher which give

8/13/2019 29331480-Idea-Report

46/69

$dea -irtel *mart 8odafone

1.+, 1.67

+.7

2.7

RAT,N0 BY R.TA,1.R

/,0/.ST4 1-5.ST46

C)art /;how average toc available at retailer. n idea ha a good maret and

no of activation i alo more than an! other provider o retailer have more toc

of idea than an! other. 8odafone ha facing ome problem in toc o average

toc of 8odafone i onl! +? idea ha average toc of 17? irtel ha 12 and *mart

ha 1.

$dea -irtel *mart 8odafone

17

121

+

A30 S,MS A3A,1AB.

C)art /

8/13/2019 29331480-Idea-Report

47/69

$dea -irtel *mart 8odafone

696"

7+

+++

2"7,

A30 BA1ANC. A3A,1AB1.

Page "

8/13/2019 29331480-Idea-Report

48/69

D"tr"(ut"#

C%a##el + Idea

Distriuti!n c)annel !" idea

Intr!ducti!n

Page ,

8/13/2019 29331480-Idea-Report

49/69

itribution i all about getting !our productFervice to the right people at the right

time with pecial conideration for profit and effectivene. *ucceful mareting

doe not end when a buine ha developed a productFervice and ha found it

appropriate target audience with a view to elling it at the Cright priceC.

#he neDt iue that need to be faced i how the! are going to ditribute and ell

thi productFervice to thee people- the conumer.

=hen a productFervice i purchaed b! a conumer? it ma! have been bought

directl! from the buine? or it ma! have been through a number of intermediarie

Bwholealer? retailer? etc)E theearenownaditributionchannel.

*mall buinee need to acnowledge the different t!pe of ditribution channel

to utili:e ale potential. fter reading the article? !ou ma! learn that !ou could

increae ale or profit b! uing a different ditribution channel to the one that !ou

currentl! ue.

itribution channel are influenced largel! b! the t!pe and i:e of the buine and

o ome of the channel eDplained ma! not be feaible for !our particular buine.

&one4uentl!? !ou ma! tae note that thee channel could be adopted in the

future to accommodate for an! change and to help !our buine grow.

Distriuti!n Strate+'

Page 7

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.html

8/13/2019 29331480-Idea-Report

50/69

nd truted to act itribution trateg! i influenced b! the maret tructure? the

firmC objective? and it reource and of coure itA overall mareting trateg!. ll

thee factor are addreed in the ection on electing itribution &hannel.

#he firt trategic deciion i whether the ditribution i to beE $ntenive Bwith maditribution into all outlet a in the cae of confectioner!)M *elective Bwith carefull!

choen ditributor e.g. pecialt! good uch a car repair it)M or Dcluive Bwith

ditribution retricted to up maret outlet? a in the cae of Gucci clothe).

#he neDt trategic deciion clarifie the number of level within a channel uch a

agent? ditributor? wholealer? retailer. $n ome Hapanee maret there are

man!? man! intermediarie involved.

/eDt come a enitive trategic deciion whether to go ingle channel or multi-

channel. *ome producer? lie (ancheter

8/13/2019 29331480-Idea-Report

51/69

penetrate the maret. #here i room for creative alliance here. *ee *outhwetern

ellC alliance with Granada #8 *hop in the %all Of ;ame.

3eource available affect ditribution trateg!. =ho can handle outbound logitic?

mareting and ale? and ervicingQ &an the upplier afford to deliver mall4uantitie? can it provide more truc? can it ale force CpuhC product into

national retail chainQ &an the organi:ation deal with thouand? ma!be even

million of cutomer - can it copeQ oe it want to devote huge reource here or

would it prefer to utili:e omeone eleC reource in return for a lice of the profitQ

ifficult mareting dilemma which mae ditribution trateg! both critical and

intereting. #he ection on itribution &hannel eDplore thi in more detail.

Selectin+ &e&ers (it)in a c)annel

%aving decided to go through intermediarie the neDt 4uetion i whether to ue

agent or ditributor and alo how man!.

8/13/2019 29331480-Idea-Report

52/69

commitmentQ o the! have budget to run promotionQ *ome upplier even a

their ditributor for a mareting plan howing how the! intend to maret the

upplierC product.

+. &otE =hat will it cot in term of dicount? commiion? toc invetment andmareting upportQ

. Other 3eourceE oe the target maret re4uire an!thing pecial uch a

technical advice? intallation? 4uic deliverie? and intant availabilit!Q $f o can the

ditributor provide itQ

5. Profitabilit!E %ow much profit will the ditributor generate for the upplierQ

6. &ontrolE o the! have a reporting !tem in placeQ %ow do the! deal with

problemQ %ow often i review meeting cheduledQ &an !ou influence the wa! the!

preent !our productQ

". (otivationE oe the agent or ditributor conve! a ene of eDcitement and

enthuiam about the productQ =hat about it ale force - whatC their reactionQ

,. 3eputationE %a it got a good trac recordQ #hi include the number of !ear in

buine? growth and profit record? olvenc!? general tabilit! and overall reliabilit!.

$ it dependant on one e! pla!erQ

7. &ompetitionE o the! ditribute an! competitorC productQ

19. &ontractE *ome ditributor demand eDcluivit!. *ome agreement tie the

upplier in for certain period of time. &hec for fleDibilit! in cae thing go wrong.

#he bottom line iE &an the agent or ditributor be motivated? controlled and

trutedQ (otivated to ell !our product among a range of other. &ontrolled to bacreult feed or change trateg! if re4ueted. a reliable ambaador of !our

productQ

Page 52

8/13/2019 29331480-Idea-Report

53/69

M!tivatin+ C)annel Me&ers

$magine thee three cenarioE

Nou are a producer of CGrand PenC a brand of fountain pen.

cutomer ee advice from a pen hop on which pen to bu! and the retailer

trongl! recommend !our.

cutomer a a retailer? who toc !our pen? for another brand called Cad

PenC. #he retailer recommend and offer !our pen a uperior.

retailer activel! olicit buine for !ou b! aing cutomer bu!ing other

product to come and have a loo at the eD4uiite CGrand PenC.

#hi retailer i obvioul! ver! motivated. C(indhareC? a it i called in the

8/13/2019 29331480-Idea-Report

54/69

better than a negative punihment. $deall! there hould be a hared ene of

reponibilit! - a partnerhip - a trategic partnerhip. #he upplier and

intermediar! are there to help each other. 8ertical (areting *!tem are a good

eDample.

&lear communication? covering ale goal? review meeting? reporting procedure?

mareting trateg!? training? maret information re4uired? uggetion for

improvement? all help. 3egular contact through viit? review meeting? dinner?

competition? newletter? than !ou letter? congratulator! award all help to eep

ever!one woring cloel! together.

#hee are all non-financial incentive which provide a form of p!chic income a

oppoed to financial income. #hatC not to a! that financial incentive arenCt ueful

motivator? it jut mean that there are other motivation there too. $n fact the

mone! pent on financial incentive i often pent more effectivel! when the ale

peron i rewarded with a pla4ue? a gold pen or a holida! in the ahama rather

than jut the cah which tend to get oaed up and lot in a ea of ordinar!

houehold dail! eDpenditure.

/on cah reward appeal to the higher level of (alowC %ierarch! of /eed -

belonging? eteem and elf actuali:ation.

epite thi? conflict can occur when too man! ditributor are appointed within

cloe proDimit! of each other? or the producer engage in a multiple channel

trateg! of direct mareting a well a mareting through intermediarie.

&arefull! motivating ditributor i vital if good are to flow moothl! through the

channel and reach atified cutomer

Page 5

8/13/2019 29331480-Idea-Report

55/69

Sales Or+ani?ati!n structure

*ale %ead

B&ircle office)

R( BGwaliorRone)

-*( B&entre)

#*(F#*.

-*( B/orth)

#*(F#*.

-*( B*outh)

#*(F#*.

-*( B =et)

#*(F#*.

Page 55

8/13/2019 29331480-Idea-Report

56/69

Distriuti!n c)annel !" idea in Varanasi

Distriut!r

*!int !"

Varanasi

Eac)

Distriut!r

s)are

Eac) tar+et

76-- cr6 *er

&!nt)

,

8/13/2019 29331480-Idea-Report

57/69

33.3

/#3P3$**

?2,?5"1 2,99

43H *0* ?2,?5"1 2,99

;(N ?2,?5"1 2,99

Distriut!r O*erati!ns

Distriut!r Revenue &!nt) Activati!ns &!nt) Retailers

c!vered

(a!a genc! 3 "5 0ah 1699 +25

nterprie 3 1.25 cr

3aj genc! 3 9 0ah

8/13/2019 29331480-Idea-Report

58/69

#illin+ s'ste& "!r Retailers

Plan 77 1"5 195 25

&laim per

im

29 3 +53 #ie-up

*lab ctivation

illing 77 1"5

59 55 ,5 195 15 59 +5

25 to 7 55 ,5 195 15 9 25

& 19 to 2 55 195 1+9 1"5 +9 19

1 to 7 55 195 1+9 1"5 29 9

Page 5,

8/13/2019 29331480-Idea-Report

59/69

C%a##el

Ma#a$ee#t

Page 57

8/13/2019 29331480-Idea-Report

60/69

C)annel &ana+e&ent

&hannel (anagement. Net another ale and mareting phrae that i thrown

around lie ever!one now what it mean. ut o few companie reall!comprehend channel management in a wa! that reall! help them. $tA reall! no

wonder. *ale channel Bbeing the conduit b! which we ditribute our product to

the end-uer) come in man! hapeSfrom direct? to the web? to the traditional

retail environment. nd? weAre jut doing whatever we can to get an! buine from

an! of themT ut i that the mot efficient and effective approachQ

#hatA where &hannel (anagement come in. &hannel management? a a proce

b! which a compan! create formali:ed program for elling and ervicing

cutomer within a pecific channel? can reall! impact !our buineSand in a

poitive wa!T #o get tarted? firt egment !our channel b! lie characteritic

Btheir need? bu!ing pattern? ucce factor? etc.) and then cutomi:e a channel

management program that includeE

1. G!als : /efine the pecific goal !ou have for each channel egment.

&onider !our goal for the channel a whole a well a individual account.

nd? remember to conider !our goal for both ac4uiition and retention.

2. P!licies : /&ontruct well-defined police for adminitering the account

within thi channel. e ure to eep the uni4ue characteritic of each

egment in mind when defining policie for account et up? order

management? product fulfillment? etc.

+. Pr!ducts : /$dentif! which product in !our offering are mot uited for

each egment and create appropriate meaging. lo? determine where !our

up ell opportunitie lie.

. SalesMar9etin+ Pr!+ra&s : / eign upport program for !our

channel that meet #%$3 need? not what !our idea of their need are. #o do

thi? !ou hould tart b! aing !our cutomer within thi egment? Ihow

can we bet upport !ou in the elling and mareting of our productQJ #hat

Page 69

8/13/2019 29331480-Idea-Report

61/69

being aid? the tandard conideration are product training? co-op

advertiing? eaonal promotion? and merchandiing. gain? thi i not a

one-i:e fit all? o be diligent about addreing thi egmentA *P&$;$&

need in thee area.

efining a channel management trateg! for each egment allow !ou to be more

effective within each egment? while gaining efficienc! at the ame time. *till?

maintaining brand conitenc! acro all channel egment i critical to !our long-

term ucce. *o find a good balance between cutomi:ation and brand conitenc!

and !ouAll be on !our wa! to ucceful channel management.

Visit (it) TSM

=e met with ditributor ;O* and made undertand that how to deal with retailer

and how to ale our product and how to follow our channel perfectl! and effectivel!

and how to gave them atifaction with compan! police.

' rea &overedE ada ?(urar?%a:ira

' 2+ retailer covered

' #a %andledE 3elationhip uilding? $ue %andling? 3eport generation?

detail about new cheme? #arget achieved tatu

' ObervationE

' $dea randing poor at ome tore B 8iit b! irtel *ale %ead)

Pr!cess started

Page 61

8/13/2019 29331480-Idea-Report

62/69

=e went to ditributor point where we aw there were ome people B;O*

ditributor) who had a chain b! which the! wored together. ver! ;O* had

particular maret in that maret the! collected mone! and gave them im card and

paper oucher e-oucher and gave that mone! to the ditribute point.

Cust!&er Interacti!n ()en visit (it) $OS

=e went to new retailer with ;O* and convince them to joint with telecom maret?

and gave them ome beautiful offer to tarted their buine with low amount

' #aE itribution of *toc B*$(? 8topup)? revenue collection? iue

handling? collecting document

' rea &overedEfruit mandi? %a:ira

Descri*ti!n !" t)e *r!cess started

#hi i the decription of the proce of ditribution of the *$( and recharche and

during the whole proce our wor wa to manage the channel and b! managing

the channel to increae the revenue of the outlet.

Page 62

8/13/2019 29331480-Idea-Report

63/69

Page 6+

8/13/2019 29331480-Idea-Report

64/69

O(er*at"# a#d

F"#d"#$

O#SERVATION @ $INDINGS

Page 6

8/13/2019 29331480-Idea-Report

65/69

55> of the people ue onl! mobile? and 9> of repondent ue both the

ervice onl! 5> people ue the telephone ervice. $t how the popularit!

of cellular phone ervice.

+> of repondent are uing the idea ervice? which i the highet

percentage of uer of cellular phone. irtel tae 2ndplace in 8aranai with

2,> of uer. #hen come reliance and */0? and tata indicom having leat

cutomer in the hopal.

Prepaid ervice i mot popular in the cellular ervice with 75> of

cutomer. #he remained ue potpaid ervice.

$n current ituation "+> of repondent are uing lifetime plan? where the

ret are uing general plan of the cellular companie.

6> of repondent are atified with the call rate of the lifetime planM it ibecaue telecom companie have lahed their call rate few month ago.

*till in thi ituation +6> of repondent did not atif! with the call rate

which ervice the! are uing.

$n the lifetime plan of cellular companie mot of the repondent are uing

thi ervice becaue of it validit! period with ,+> of anwer. =here 15> of

people lie thi ervice becaue of it call rate.

",> of cutomer atified with the lifetime plan of cellular companie? and

which are not atif! with the ervice the! are motl! */0 and ## indicom

uer.

Page 65

8/13/2019 29331480-Idea-Report

66/69

(ot of the people are uing lifetime ervice becaue of mone! aving with

the percentage of ,. =here 27> of people lie thi ervice becaue of the

facilitie provided b! the operator. nd 2+> of people are uing thi ervicebecaue of incoming onl!.

CONCUSIONS

$n 8aranai it i found that idea i the maret leader in the lifetime plan egment.

People lie the lifetime plan provided b! the companie. nd airtel having 2nd

highet cutomer in 8aranai.

## indicom having leat cutomer in 8aranai? where 3eliance and */0 having

almot e4ual percent of cutomer

ut the! are not aware about the bound of cellular companie with #3$? that

cellular companie can deliver their ervice till their licene have validit!? the!

have to renew it for providing further ervice.

SUGGESTIONS

$n the lifetime plan? cellular companie hould reduce the call rate.

#he! hould provide other facilitie lie maage and minimum call rate in

the ame networ.

Page 66

8/13/2019 29331480-Idea-Report

67/69

#he! hould mae aware the cutomer that the! have limited licene period.

#he! hould not tae other hidden charge.

#here hould not be an! compulion that cutomer have to recharge their

card in 1,9 da! with certain amount. #hi i the main drawbac of the

lifetime validit! plan.

7"(l"$ra1%-

Page 6"

8/13/2019 29331480-Idea-Report

68/69

#I#IOGRAP%Y

ooE

Philip 'otler? @mareting managementA prentice %all of $ndia Pvt. 0td. /ew ehli.

&. 3. 'othari @3eearch methodolog!A? vihwa publication? /ew elhi.

*aDena 3ajan @mareting managementA #ata (cGraw-hill publication &o. 0td.

/ew elhi.

%. 8. 8erma @mareting of erviceA Global buine pre? /ew elhi.

uine toda! maga:ine of ;ebruar! iue? 299,.

Page 6,

8/13/2019 29331480-Idea-Report

69/69

=e Res!urcesE

www.trai.gov.in

httpEFFwww.tataindicom.comFt-aboutu-ttl-organi:ation.apD

httpEFFwww.rcom.co.inFwebappF&ommunicationFrcomFboutuFaboutuUhome.jp

httpEFFwww.ideacellular.comF$.portalQ

UnfpbVtrueUpage0abelV$UPageUbout$dea

httpEFFwww.bnl.co.inFabout.htm

httpEFFwww.bnl.co.inFerviceFtariffUeDcelUpre.htm

httpEFF219.212.1.2+Futilit!Ftariff.htm

httpEFFwww.trai.gov.inFtraiFuploadFPre3eleaeF15Fpr16jan96.pdf

www.airtel.in

httpEFFwww.rcom.co.inFwebappF&ommunicationFrcomFindeD.jp

http://www.tataindicom.com/t-aboutus-ttsl-organization.aspxhttp://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_home.jsphttp://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdeahttp://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdeahttp://www.bsnl.co.in/about.htmhttp://www.bsnl.co.in/service/tariff_excel_pre.htmhttp://210.212.144.243/utility/tariff.htmhttp://www.trai.gov.in/trai/upload/PressReleases/15/pr16jan06.pdfhttp://www.airtel.in/http://www.airtel.in/http://www.airtel.in/http://www.airtel.in/http://www.airtel.in/http://www.airtel.in/http://www.rcom.co.in/webapp/Communications/rcom/index.jsphttp://www.tataindicom.com/t-aboutus-ttsl-organization.aspxhttp://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_home.jsphttp://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdeahttp://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdeahttp://www.bsnl.co.in/about.htmhttp://www.bsnl.co.in/service/tariff_excel_pre.htmhttp://210.212.144.243/utility/tariff.htmhttp://www.trai.gov.in/trai/upload/PressReleases/15/pr16jan06.pdfhttp://www.airtel.in/http://www.rcom.co.in/webapp/Communications/rcom/index.jsp