Business Analysis of Tata Docomo About

7/24/2019 Business Analysis of Tata Docomo About

1/27

Business Analysis Of Tata DocomoAbout

TATA DOCOMO is Tata Teleservices Limiteds telecom service on the GSM platform arising out of the Tata Groups strategic alliance with apanese telecom ma!or "TT

DOCOMO in "ovem#er $%%&' "TT DOCOMO has $() of sta*e in the compan+' TATA

DOCOMO has license to operate its GSM services in ,- telecom circles' .t started its

operation in .ndia from Tamilnadu' "TT DOCOMO is one of the leading mo#ile operators

in world and in apanese Mar*et its having more than /%) of mar*et share in telecom

mar*et' "TT DOCOMO is supposed to help TATA Telecom Services in growing its

#usiness as well as provide the *now0how to help the compan+ develop its GSM

#usiness' Tata DOCOMO was the second compan+ in .ndia who introduced second

pulse tariff' .t mar*s a significant milestone in .ndian Telecom landscape'

Vision Statement

1e will refine our #rand and strengthen ties with our customers'

1e will solicit and incorporate feed#ac* from customers so that we continue to e2ceed

their e2pectations'

1e will continue to innovate so that we can earn the respect of people worldwide'

1e will #ecome an organi3ation whose energetic staffs are capa#le of overcoming all

challenges in pursuit of our corporate vision'

Objectives

Corporate Objectives

4ollowing are the corporate o#!ectives of TATA DOCOMO Services

As a partnership of two pioneering #rands5 TATA DOCOMO promises to deliver relevant

new applications and services that will ma*e life simpler and more en!o+a#le for the

customer'

To offer simplicit+ to customers in its services amidst cluttered telecom operators and

confusing options'

To offer their service #+ #eing countr+s most transparent5 innovative and li#erating

telecom #rand'


2/27

To create a new communication culture and to full+ utili3e the individual potential'

Marketing Objectives

6olumes and 7rofits The Compan+ has earmar*ed an investment of 8$ #illion on its

pan0.ndia GSM networ* rollout' The compan+ has positioned the tariff for its services

under the 97a+0for0what0+ou0use: model which includes per second pulse tariff structure'

.t offers its GSM #ased mo#ile services in ,( circles out of $$ circles defined in .ndia'

Tata DOCOMO actuall+ falls under the superset group of Tata Teleservices' Tata

Teleservices runs its CDMA #ased services under Tata .ndicom and its GSM #ased

services under Tata DOCOMO' Tata Teleservices added ;$'; million? and 6odafone >$'$

million?' Currentl+ Tata Teleservices is .ndias si2th largest mo#ile operator with


3/27

Tata Docomo is a mo#ilewireless service provider and is colla#oration #etween the

apanese compan+ Docomo and the .ndian giant Tata for its launch in .ndia' The

announcement of the launch was made as recentl+ as une ,%5 $%%-' ence the product

is a new one in the mar*et with a lot of e2isting pla+ers which include giants li*e =harti

Airtel5 6odafone5 @eliance etc ' ence it is important to anal+se the competition in the

mar*et and see if there is enough scope in the mar*et'

Competitor Anal+sis 0 The wireless telecom industr+ is a huge and still growing mar*et

and has immense scope for new entrants as well as e2isting pla+ers'

The following chart shows the division of the mar*et share in terms of num#er of

su#scri#ers as per the T@A. report for the +ear $%%-'

The #iggest pla+ers in the industr+ are the ones that are the oldest and well esta#lished

ones with ma!or mar*et shares'

The ma!or pla+ers are =harti Airtel 5@eliance and 6odafone' @eliance is relativel+ new

and +et has gra##ed a ma!or share in the mar*et compared to the other two which are

older'

Tata has also gained good amount of mar*et share even though it has onl+ !ust entered

the industr+ in the second half of the +ear $%%-5 which shows that the mar*et has

enough place for man+ pla+ers as long as the+ can attract customers to their #rand'

Tata #eing a well esta#lished and trusted name in .ndia could prove to #e a ma!or #oost

for Tata Docomo to esta#lish itself in .ndia in a #ig wa+'

The rate of growth of these networ*s from Septem#er $%%- to Decem#er $%%- as per

the T@A. report for $%%- is given #elowE

S!"V#C! P"OV#D!"

"AT! O$ %"O&T'

=harti Airtel

F'


4/27

=S"L


5/27

The compan+5 with &%'-

million?5 state0run =harat Sanchar "igam Ltd >=S"L? >/F'; million? and .dea Cellular >/%

million?'

The compan+ offers integrated telecom solutions to its customers under the Tata

.ndicom5 Tata DOCOMO5 7hoton and 1al*+ #rands5 and uses #oth the CDMA and GSM

technolog+ platform>s? for its wireless networ*s'

Tata Teleservices5 which provides #oth CDMA0#ased and GSM0#ased mo#ile service

networ* under the name of Tata .ndicom and Tata DoCoMo respectivel+5 added ;$'; million? and

6odafone >$'$ million?'

Market S(are

S&OT Analysis

swot0anal+sis0image'png

Strengt(s*

Tata Docomo was the first in the #usiness to introduce the much acclaimed pulse plan in

which users are reHuired to pa+ on seconds #asis' This attracted a ma!or portion of themo#ile users especiall+ the rural sector as it resulted in much cheaper costs'

Tata is a renowned name in .ndia' Bsta#lished around ,/% +ears #ac* Tata services are

*nown to provide the #est0in0Hualit+ services at minimal rates' The ardent followers of

the Tata #rand are sure to use its services' Also the goodwill Tata has generated via its

philanthropic activities gives it a clean image and attracts a lot of people towards it'

Tata Docomo gives its users a chance to tr+ out a large num#er of services which are

first of their *ind' 4or e2ample5 the introductions of =udd+net which allows the ones who

have !oined it to sta+ connected at a price of ,p( sec and also en!o+ social networ*ingsites' The G7@S on demand service allows users to use internet for a convenient

num#er of da+s' 4or the post0paid customers Tata Docomo came up with the postpaidI

doorstep service which allows users to get the representatives at their respective homes

to solve their Hueries' These and a large num#er of other services have given Tata

Docomo an edge over the other Telecom services'


6/27

Tata Docomo services are for the common people' Li*e alwa+s the target audience

comprises of Aspirers and See*ers which represents the ma!orit+ percentage of the

mo#ile users in the countr+ and has resulted in Tata Docomo reaping rich dividends'

&eaknesses*The most common complaint of Tata Docomo users has #een the wea* signal strength

the+ have #een getting in some of the regions it has #een launched in' This has resulted

in freHuent disconnections and has agitated the users'

The focus has mostl+ #een on the prepaid connections' The post0paid connection was

launched Huite late and wasnt a#le to generate as much #u33 as the prepaid

connection'

There is a large variation in the efficienc+ of the customer services across the regions

Tata Docomo has #een launched in'

The Tatas have #een concentrating on the rural mar*et so much that the ur#an focus

has #een left neglected' There is an urgent need to maintain a #alance #etween these

two regions to #oost further growth'

Opportunities*

.t has a chance to e2pand its services across the whole countr+ as there are still

une2plored regions' .t can also #ring out some schemes e2clusivel+ for ur#an users to

increase its ur#an mar*et penetration'

.t can also tr+ focussing on coming out with some innovative ideas as far as its internet

services are concerned since at present there in not much in the Jinternet services area

which provides it with a competitive edge' .t must tr+ to e2ploit this factor'

Since the introduction of ;G services in .ndia5 Tata Docomo has a chance to #ring a#out

services which are compati#le with ;G to ensure that people using it dont face

incompati#ilit+ issues'

@ight now Tata Docomo has focussed on e2clusive schemes for internet5 SMS5 incoming

and outgoing calling etc' "ow it is time for #ringing out com#ined and integrated

services'

T(reats *


7/27

.f the error of disconnections arising out of wea* signal strengths continues to occur it

ma+ result in people leaving it for other networ*s'

There is uneasiness among users regarding the fact that the ,psec services will

continue till the life c+cle lasts' This uneasiness should #e removed #+ proper

clarification'

The o#vious and the #iggest threats are from the alread+ e2isting mo#ile services

providers li*e Airtel5 .dea etc who have consolidated their positions' .t would #e an

arduous tas* to topple them from their positions'

Category $actors

7orters / forces anal+sis model deals with those e2ternal factors which impact the

nature of competition within in industr+ among the firms and the internal factors inside

the industr+ that influence the competition among firms' A firm needs to comprehend the

d+namics of its own industr+ #ase and the mar*et involved so as to compete effectivel+'

4ollowing are the five forces e2plained for Tata DOCOMO 0

T(e Degree of "ivalry*

.n Telecom space in .ndia5 there are a num#er of #ig companies li*e @eliance5 .dea5

Airtel5 =S"L5 6odafone5 etc which are giving cutting edge competition to each other'

@ivalr+ among the competitors can #e e2plained in terms of introduction of various

schemes and offers freHuentl+ that compels each other to come up with innovative

strategies more than often' This rivalr+ can #e controlled #+ Tata Docomo services #+

focusing on hiring performing sales persons having customer gaining s*ills and it should

also tr+ to #rea* apart good sales person from its competitors'

T(e T(reat of +e, !ntrant*

Telecom industr+ is an attractive avenue for an+ new firm due to its advantages and

profita#ilit+ involved' ence5 the threat of new entrants is prett+ high and the good recent

e2ample can #e Aircel5 6irgin Mo#ile5 etc' The GSM version of Tata .ndicom i'e' TataDOCOMO also entered as a threat in mar*et for other e2isting competitors' The rule is to

capture the mar*et share of e2isting competitors where the+ lose some of them'

T(e T(reat of Substitutes*


8/27

The ma!or su#stitute possi#ilit+ in Telecom space can #e Online Chat5 Bmails5 6oice

over .75 Satellite 7hones5 etc' These potential su#stitutes have high capa#ilit+ of

replacing Telecom space5 #ut in current scenario its not highl+ pro#a#le'

=ut *eeping in mind the futuristic possi#ilities of such su#stitutes a#ilit+5 the compan+

should *eep a close watch on them and strategi3e accordingl+'

Buyer Po,er*

Since the competition is ver+ intensive in Telecom space5 the #argaining power of

customer is ver+ high' .n the span of hardl+ /0( +ears5 the prices have come down in a

sharp manner and still the process is on' The onl+ reason is J=u+er 7ower in this space'

So in order to overcome this power5 DOCOMO should come up with strategies of

differentiating its product from its competitors so as to stand out among the crowd and

gain the ma2imum from its customer #ase'

Supplier Po,er

More is the competitionK more is the #u+er and supplier power in an+ industr+' So is true

for Telecom sector too' Supplier puts pressure on firms5 when the+ have more options

in the industr+'

These five forces help the compan+ to tac*le the competition

!nvironmental $actorspest'imgcache

Tec(nological*

The ma!or attraction of Tata Docomo has #een the ,psec scheme' This innovation has

drasticall+ reduced customers costs and have made them shift #ase from competitors'

docomo0,0paise0per0second'png

.t gives users a chance to tr+ out #lac*#err+ services at minimal cost for one wee*'

#lac*#err+0#old0curve'7G

.ts #udd+net plan allows users access to social networ*ing sites without data charges or

G7@S pac*s' Also5 the #udd+net plan also connects a person to his closest friends #+

this scheme as charges are lower than normal costs'

#udd+net'!pg


9/27

The 9do the new: polic+ of the #rand la+s more stress on research so that there are more

technological innovations which can further the delight the customers and enlarge its

mar*et share'

do'!pg

Tata Docomos 9Diet postpa+ plan: allows user to ma*e their own plans as per their

convenience' As a result users can now cut up to ,&) of their #ills fla# across Local5

STD and @oaming'

post'!pg

Political*

"o political resistance due to the philanthropic image of TATA'

Tata Docomo has to compl+ with T@A. regulations !ust li*e the other telecom serviceproviders'

"o ta2 incentives or such provision is there for Tata Docomo #ecause there is alread+ a

ver+ stiff competition in this field with ever+ service provider tr+ing to revitalise itself'

.n areas where tata has #een activel+ present #efore5 the usage is much more and the

services have #een much #etter'

!conomic*

Tata Docomo is still in its transition from introductor+ stage to growth stage as still thereare lots of Huestions regarding sustaina#ilit+ of its schemes'

Tata Docomo is growing #+ leaps and #ounds in a large num#er of states li*e Andhra

7radesh5 arnata*a etc' .t has manages to carve out a niche for itself in such a

competitive mar*et which gives us an idea of the shape of things to come' ence from

the present mar*et scene Tata Docomo will continue to grow in the future'

Since Tata is *nown for its acHuisitions and mergers a#road5 if it can manage to stri*e

out such *ind of a deal in near future it can lead to a huge #oost to its customer #ase

and strengthen its mar*et position'

Social*

The schemes li*e #udd+net allows Tata Docomo users to sta+ more connected at ver+

cheap prices which has resulted in more interaction in its users'


10/27

The services have had a huge impact on the .ndian middle class societ+ as the low

prices have #een the ma!or factor that have made the aspirers and stri*ers leave the

li*es of airtel5 6odafone etc and shift to Tata Docomo'

The pu#lic opinion regarding Tata Docomo is ver+ positive in most of the regions at

present' The ma!or reasons have #een the trust people have in Tata and its products'

Also the present schemes are considered to #e too good to #e true and have managed

to delight the customers'

Though the e2perts in this field are apprehensive regarding the sustaina#ilit+ of Tata

Docomos schemes5 the+ still have #een ver+ impressed #+ the pu#licit+ and mar*eting

that has #een given to its services'

-egal*

The different strategies and policies that Tata docomo has implemented or followed are

in compliance with the .ndian laws and legal structure' Bver+thing has #een

implemented smoothl+ and in a structured fashion' There have #een no legal issues till

now'

COMP!T#TO" A+A-.S#S $O" TATADOCOMO

Competitors for Tata Docomo can #e classified into $ #road categories in the wireless

telephon+ domain' These are 0

GSM Service 7roviders Airtel56odafone5.dea5=S"L5ninor5@eliance GSM5Aircel

CDMA Service 7roviders @eliance5 Tata .ndicom5 6irgin Mo#ile

The e2isting mar*et share of GSM and CDMA as given #+ the T@A. @eport5March $%,%

is GSM vs CDMA'7"G

.n this conte2t5 we need to anal+se the e2isting mar*eting o#!ectives of Tata Docomo as

well as specif+ the o#!ectives of the 7ro!ect'

Marketing Objectives

Market Penetration

Mar*et penetration is a growth strateg+ adopted #+ a compan+ for increasing the sales

of its current product to current mar*et segment without an+ change in the product' ere


11/27

TATA DoCoMo has launched its GSM product in the mar*et and is competing with the

e2isting competitors li*e Airtel5 6odafone5 etc for capturing the mar*et'

+e, Prouct Development

.t is a strateg+ adopted #+ a compan+ for growth #+ offering modified products to current

mar*ets segment' 4or eg' TATA DoCoMo #ringing in new plans in the mar*et5 dail+ #asis

plan5 pa+ per second5 etc'

Objectives /as a project0*

To *now the awareness a#out the #rand'

To chec* Hualit+ of #rand >i'e'5 connectivit+ etc?'

To stud+ the uniHue product feature of #rand'

To *now the impact of promotional activities on the purchasing #ehavior of the #u+er'

6arious features offered #+ TATA DocoMo are as followsE

,psec 0 An+where .n .ndia

Savings Alert After ever+ Outgoing call

.SD calls on , second charging

=est SMS rates from Tata DOCOMO

7re activated STD5 .SD and "ational @oaming without rentalAn+where in .ndia @echarge with Tata DOCOMO

Total .nformation control

=udd+ "et

Dail+ 7lans

"oteE This is an indicative and non0e2haustive list of schemes'

MA"1!T#+% M#2

1hat is Mar*eting Mi2

The Jmar*eting mi2 is a set of controlla#le tactical mar*eting tools that wor* together to

achieve compan+s o#!ective'

The


12/27

7rice

7lace

7romotion

P"OD3CT*Tata Docomo provides a good range of products as a mo#ile service provider' .t provides

#oth pre0paid and post0paid services'

.t also provides a good networ* coverage and the voice Hualit+ and other essential #asic

features are all well in place'

P"#C!*

The pricing of the services was of utmost importance in case of Tata Docomo as it wasto compete with alread+ esta#lished giants li*e 6odafone 5 Airtel 5 @eliance etc'

Tata Docomo was the first to introduce a per second pulse and the rates of ,

paisasecond for #oth prepaid and post0paid services'

P-AC!*

Tata Docomo could ma*e its presence felt in the mar*et relativel+ easil+ #ecause the

Tata conglomerate was alread+ into the communications field with Tata .ndicom'

=ecause of the a#ove reason5 the distri#ution channels were alread+ esta#lished'

P"OMOT#O+*

Advertising was a ma!or contri#utor to the promotion of the #rand' A musical +outh

oriented ad0campaign gave it a head0start in the mar*eting and promotion of the product'

The idea of #ringing together people and the +outh is central to its ad0campaign'

Sales promotion were also helped #+ the uniHue offers and services provided #+ Tata

Docomo' The+ used man+ innovative plans and schemes to attract new customers'

P"O$#TS

7rofits for Service providers are mainl+ reflected in ; parameters A@7> average

@evenue 7er ser?5 Mo>Minutes of sage? and "et additions to the su#scri#er #ase'

A@7 and Mo figures for wireless providers>GSM vs CDMA?


13/27

Service Proviers4 s(are in net aitions uringt(e mont( of 5une67898

The a#ove #ar graph represents the percentage share of each of the ma!or wireless

service providers in the net addition to the su#scri#er #ase during the month of une0

$%,%'

The a#ove statistics are indicative of the growth of each service provider in the industr+

and their changing mar*et shares due to it'

.t shows that Tata has a good share in the net additions closel+ #ehind the three ma!or

esta#lished #rands and is a#ove the other pla+ers'

"ow let us tr+ to compare and contrast the various #rands on some indicative

parameters

Prouct $eatures Matri:*

$eatures;Provier

Airtel

Voafone

"elianceAircel

#ea

BS+-

Nualit+ of networ*

B2cellent

Good

Average

Good

Average


14/27

B2cellent

6ariet+ of Tariff plans

Good

Good

B2cellent

B2cellent

Average

Average

7rice per call

igh

Average

Low

Average

Average

Low

Customer service

Good

Good

7oor

Average

Average

Average

Additional services offered

Good

B2cellent

Average

B2cellent

Average

7oor


15/27

Differential avantage comparison*

Ability;Provier

#nnovationService

Marketing

$inance

Management

Airtel

Good

Good

Good

Good

B2cellent

6odafone

Good

Average

B2cellent

B2cellent

Good

@eliance

Average

Average

7oor

B2cellent

Good


16/27

Aircel

B2cellent

Good

Good

Average

Average

.dea

7oor

Average

Average

Good

Good

=S"L

Average

Average

7oor

7oor

Average

Tata Docomo

B2cellent

Good

B2cellent

B2cellent

Good

All the a#ove ratings are #ased on comparative performance indicators relating to

consumer lo+alt+ and perception of the #rand and are on a scale of / with e2cellent

#eing the highest and ver+ poor #eing the lowest

!:pecte $uture Strategies of Tata Docomo


17/27

The following trends have #een o#served5 as per the T@A. @eport of March

$%,%E4EAcadsM*tg7ro!ectPDoCoMo@ural vs

ur#an'7G4EAcadsM*tg7ro!ectPDoCoMo@ural vs ur#an $'7G

This clearl+ shows that there is a huge potential in the rural mar*et where more than

(%) of .ndias population lives' This should #e the ideal direction where Tata Docomo

should focus its strategies on'

Customer Analysis

Segmentation

The mar*et segment chosen #+ Tata DOCOMO can #e categorised #ased on different

t+pes of segments as following

GeographicE 0 .t started its services from southern 3one of .ndia i'e' Tamilnadu' Slowl+

the+ started spreading their services towards other states of countries via arnata*a5

Andhra 7radesh5 etc followed #+ movement towards northern 3one of countr+'

DemographicE 0 On the #asis of demographics5 the people in their +outh i'e' an age

#ased targeting has #een done #+ Tata Docomo' Since the ver+ launch of the product5

the target has #een the +outh clearl+ evident in their ad campaigns and initial offers li*e

the 9#udd+net: etc that were uniHue features introduced #+ Tata Docomo for the first time

in .ndian wireless communication industr+'

7s+chographic This segmentation was done #ased on lifest+le of customers and was

concentrated on middle and higher end segments' Moreover5 with price optimi3ations

strategies li*e ,psec and lower #illing plans5 it emphasi3ed its focus on reaching out

customers through mass mar*eting'

=ehavioural The #enefit0see*er segments #ased on Hualit+5 service and convenience

was targeted' Nualit+ of networ* and service was emphasi3ed more #ased on customer

needs'

Consumer Be(aviourConsumer #ehaviour is the sum total of the #u+ing #ehaviour of final customers

individuals and households that #u+ goods and services for personal consumption' .t is

the response of customers to environmental factors

4actors affecting #u+er #ehaviour for the customers of Tata DocomoE


18/27

Social status E This affects the average duration of calls made #+ the customer'

Customers of tata Docomo are varied across all social statuses

LocationE r#an users and rural users 7enetration is higher in ur#an areas' Mo#ile

phone usage is ver+ less in rural areas and hence5 users of Docomo are also ver+ less

AgeE +outh are comparativel+ more inclined to e2periment with the new #rand and new

schemes'

7erceptionE 7erception of the #rand as one that focuses on innovation to satisf+

customer needs and that provides value for mone+' This image has #een #uilt #+ various

promotional campaigns and schemes introduced #+ the compan+'

7ersonalit+E The highest value producing customers are people who #uild strong human

relationships and people who sta+ awa+ from their families

TA"%!TT#+%*Tata DoCoMo has #ased its mar*eting campaign on targeting certain segments of the

mar*et5 some openl+ and some in a su#tle manner' Qet the ma!or approach in the

mar*et targeting has #een mass mar*eting or undifferentiated mar*eting'

The ma!or focus although seems to #e on +outh #ut there is a general focus on tr+ing to

reach out to the masses #+ reducing prices and venturing into #oth the GSM and CDMA

mar*ets' According to Mr' Anil Sardana5 Managing Director5 Tata TeleservicesE 91e have

chosen Tata DoCoMo as our GSM #rand' 1e li*e the appeal of the DoCoMo #rand' .t

#asicall+ means 9Do Communication More:5 and it reaches out to a large audience' 1ith

our CDMA offering5 we are alread+ catering to the mass mar*et consumers' 1ith GSM

services5 we are e+eing the mid and higher end of the spectrum:'

POS#T#O+#+%

Tata Docomo has highl+ emphasised on the value proposition it has offered to its

customer' .t is positioned on econom+5 which can #e seen #+ the revolutionar+ 9per

second #illing: it offered to its customers when it entered the mar*et' .t caught its

competitors off guard which led to a lot of vulnera#ilit+ in the mar*et with their shares

dropping #+ a significant margin' owever due to the high regard for the #rand Tata

which alread+ e2ists in the .ndian societ+ due to its philanthropic initiations and the fact

that a lot of Tatas products focus on giving the #est of products to its customers at the

lowest possi#le price5 there was not much difficult+ in ensuring that the customers

perceived Tata docomo services the wa+ the+ wanted them to' The recent 9per second


19/27

#illing on roaming: scheme has further strengthened its positioning as the cheapest

possi#le alternative in the minds of the customers'The positioning map of tata docomo

with respect to its strongest competitors has #een shown #elow5

Orientation >lu2ur+0performance?R AR.S

7ricesQ AR.S

=harti Airtel >$,F'/)?

@eliance >,&)? Tata Docomo >-)?

=snl >,;)?

Tata has also tried to position its services as #eing +outh oriented' .ts #udd+net scheme

which gives users a chance to sta+ connected with friends at a meagre price of ,p( sec

and the low prices >which have #een a ma!or source of attraction for the teenage and

college going crows? are an e2ample of it'

ence to position it in the a#ove mentioned wa+s5 the differences which have #een

promoted can #e categorised in the following wa+E

.mportanceE The cheap rates represent the most valued #enefit to the users' .n .ndia5 a

great deal of emphasis is laid on the price of a product' The growing proportion of

see*ers in the population has resulted in price #eing considered the most important

factor in an+ product'

DistinctiveE The #udd+net scheme is pro#a#l+ the most innovative feature which can #e

offered #+ a telecom services provider to its users' .t is highl+ #eneficial for its users who

want to sta+ connected at low prices and also en!o+ the social networ*ing sites services'

SuperiorE The fact that Tata Docomo was the first one in the telecom field to charge at

pulse rate ensured that the customers perceived it as a superior service provider in this

conte2t than its competitors'

Communica#leE The a#ove mentioned differences have #een communicated to the

customers #+ strong advertising'

7re0emptiveE Though the competitors can cop+ the a#ove mentioned features #ut the

fact that Tata DOCOMO was the first one to #ring a#out these features ensures that the+

will alwa+s have an edge'

7rofita#ilit+E The #udd+net plan reHuires onl+ DOCOMO users to avail of the ,p(sec

price' ence not onl+ is this plan #eneficial to users #ut also increases its customer #ase

which would ensure profita#ilit+ in the long run'


20/27

Tata docomos value proposition positionE

7rice

MO@B

TB SAMB

LBSS

MO@B

TATA DOCOMO

TB SAMB

LBSS

=enefits

The fact that #esides the pulse rate5 the cost has also #een reduced has placed TataDOCOMO in the more for fewer categories'

Assumptions

Customers will #u+ our product as we are providing lot fle2i#ilit+ in terms of plans'

Customers will #u+ our product as we are offering higher value plans'

1e can leverage on the #rand name of 9TATA:5 thus the perception of product is going to

#e 9great: and relia#le'

Competitors will #ehave in a rational wa+'

Gaining profit and growth in the meantime will not lead to increasing price unless

inevita#le'

Customers wont #e facing an+ ris* in terms of #u+ing and consuming our offerings and

services'

Strategy < Prouct

Customer Targets 7roduct fading awa+


26/27

To pave wa+ for new ones? >Decline?

>Creating roots?

Market Survey

On conducting the mar*et surve+5 we found some information relevant to our mar*et

anal+sis on Tata Docomo' These surve+s are ta#ulated in following diagrams

&(ic( Service &ill you Prefer

1ho influences +our decision most in choice of +our networ*

Most .mportant 7arameter while choosing a networ*

1hich product will u prefer among CDMAGSM

1hat networ* will u prefer

Contingency Plans

The strateg+ devised #+ us has ta*en certain things for granted in terms of the goals that

the compan+ can achieve and the demand of the product'

There might #e some pro#lems in the implementation of the strategies suggested' The

possi#le pro#lems and their #ac*up plans are as followsE

Obstacle 9"etwor* coverage might not #e an eas+ e2pansion as it ma+ need permissions and

grants and a lot of investment'

SolutionE An alternative to networ* enhancement could #e the use of the networ* width

of the tata .ndicom services and integrating it with the Tata Docomo networ* #+ sharing a

certain amount of #andwidth that can #e *ept as #uffer'

This wa+ there can #e a short term solution in case the e2pansion of the networ* ta*es

too long or is to capital intensive to #e ta*en up in the immediate plans of the compan+'

Obstacle 7

7ricing ma+ not #e eas+ to control as the competitors can also slash their prices to

match the low prices of Tata Docomo'

SolutionE "ot onl+ pricing its services low #ut also another suggestion has #een made of

#eing a Lead mover instead of pla+ing the catch up #+ adopting wait and see approach'


27/27

=eing the first mover in an+ *ind of competition adds to the competitive edge of the

compan+' Choosing innovative and minimal prices not onl+ gives the compan+ a good

amount of mar*et share #ut also gives them goodwill of the customers'

Date post:	22-Feb-2018
Category:	Documents
Upload:	vinay-manchanda
View:	227 times
Download:	0 times

Business Analysis of Tata Docomo About

Documents