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HOW TO INCREASETHE MARKET SHARE

OF TATA DOCOMO?BRM GROUP PROJECT

Dipanwita Ghosh [B13145]

Ganashree S [B13147]

Roopan Roy [B13168]

SaiyamSanghvi [B13169]

SantanuMallick [B13170]

SuhasKini [B13175]

SECTION C

GROUP 5

BUSINESS MANAGEMENT

XLRI JAMSHEDPUR

2/25/2014

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BACKGROUND OF THE STUDY

India is the worlds second-largest telecommunications market. Some of the mentionable

aspects of this sector are-

1. Compound Annual Growth Rate of 20%-The telecom infrastructure in India is expected to increase at a compound annual growth rate

(CAGR) of 20 per cent during the period 20082015 to reach 571,000 towers in 2015

2. GDP Contribution-The mobile phone industry in India is likely to contribute US$ 400 billion to the countrys gross

domestic product (GDP) and has the potential to generate about 4.1 million additional jobs by

2020 - as per Ms Anne Bouverot, Director General, Group Special Mobile Association (GSMA).

The mobile ecosystem generated approximately 5.3 per cent of the GDP for India, and directly

supported 730,000 jobs in 2012 - according to the report titled Mobile Economy India 2013

released by GSMA in association with the Boston Consulting Group (BCG).

3. Foreign Direct Investment-

The telecommunications industry attracted foreign direct investments (FDI) worth US$ 12,889

million in the period April 2000September 2013 - according to data published by Department

of Industrial Policy and Promotion (DIPP)

4. Increase of Rural subscribers-

The countrys GSM operators added 1.66 million rural subscribers in October, taking their

overall user base to 274.32 million - according to data released by the Cellular Operators

Association of India (COAI). The telecom companies are looking at rural India to add more users

and increase revenues.

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5. Low cost hub-

India could emerge as a low-cost hub for testing security-sensitive IT products used in

telephone and other critical infrastructure networks, with the country being recently given the

'authorizing member nation' status in the Common Criteria Recognition Arrangement (CCRA).

Laboratories in India could offer testing services at much lower costs compared to other CCRA

labs in Western markets as highlighted by Mr Rajan Mathews, Director General, and COAI the

Industry body representing GSM operators.

6. Mobile-only Internet Users-

India has over 50 per cent mobile-only internetusers, possibly the worldshighest compared

to that of about 2025 per cent across developed countries, according to Avendus Capital.

More so, gaining impetus from the increasing penetration of smartphones and a whole host of

mobile-only content, the Indian mobile advertising market is estimated to reach Rs 2,800 crore

(US$ 457.52 million) by 2016 from the current Rs 180 crore (US$ 29.41 million).

7. Availability of high speed networks-

Increasing demand for smart phones and availability of high speed networks, such as 3G and 4G

services, has resulted in the rapid growth of the Indian market, besides offering immense

opportunities to players involved in the business. The RNCOS research study, Indian Mobile

Gaming Market Forecast to 2017 estimated the market to reach Rs . 18.5 billion (US$ 302.28

million) in 2017 and grow at a CAGR of nearly 24 per cent during the period 20132017.

All the above mentioned factors justify the highly competitive telecom operator market in

India. The following figure shows the present market share of different telecommunication

companies in India.

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TATA DOCOMO

It falls under the telecom operator of Tata as mentioned in the figure in the last page. It is an

Indian cellular service provider on theGSMand CDMA platform-arising out of the strategic joint

venture betweenTata Teleservices andNTT Docomo in November 2008.

Tata DOCOMO became the first private sector telecom company to launch3G services in India.

It is the country'ssixth largest operator in terms of subscribers (including both GSM and CDMA).

Leaving the other companies under the umbrella of Tata, Tata Docomo alone is having a market

share of 6.4% in India.

Tata DOCOMO had introduced Ranbir Kapoor as its brand ambassador recently and also has

various local Brand ambassadors in different states such as Vijay in Tamilnadu and Ram CharanTeja in Andhra Pradesh.

http://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Tata_Teleserviceshttp://en.wikipedia.org/wiki/NTT_Docomohttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_Indiahttp://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_Indiahttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/NTT_Docomohttp://en.wikipedia.org/wiki/Tata_Teleserviceshttp://en.wikipedia.org/wiki/GSM

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Subscriber Base of Tata Docomo and its Market Share Region-wise across India

Now let us look at the subscriber base of Tata Docomo.

Maharashtra with 5.01 million active mobile subscribers remains the largest market for Tata

DoCoMo followed by Andhra Pradesh (4.91 million), Karnataka (4.59 million), Tamil Nadu (3.41

million) and Madhya Pradesh (2.75 million)

During FY2013, Tamil Nadu posted highest growth for Tata in terms of active mobile

subscriber addition at 31.30% followed by Kolkata (10.40%), Odisha (9.11%), Mumbai (6.24%)

and U.P. (4.90%)

The below figure depicts the details of subscribers and market share of Tata Docomo across

India.

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Some of the areas of improvement which we can make out from the above mentioned figureare:

Out of 19 circles where Tata is operating, 11 telecom circles witnessed negative growthfor active mobile subscriber addition which is a cause of worry.

Tata exited 3 circlesAssam, J&K and North East during FY 2013

Tata does not hold either of the top two positions in any of the telecom circles in India.The highest rank it holds is 4th ,and that too in just one circle - Kolkata

To succeed in the highly competitive market of telecom operators in India, Tata Docomo has to

find out ways to widen its market share.

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RESEARCH PROPOSAL

It has been almost 20 years since the government decided to open up the doors of Telecom

Industry to private players. Largely dominated by PSUs in the 80s, this move broke the

monopoly of the department of telecommunications in domestic and foreign services. The

private players have developed and flourished subsequently since then. Growing at exponential

rate, it has attracted many more players; Indian as well as global to cover the market. Along

with some of the huge players, the market is getting overcrowded with a large number of

regional and local players.

With so many players, Indian players like Tata DoCoMo, reliance, Airtel etc. are caught between

the twin needs of protecting their existing turf while also keeping an eye on future revenue

sources.

Tata DoCoMo has been coming up with many exciting and cost effective plans to please the

customers. But with the new mobile number portability facility, we observe a trend of decliningsubscriber base for Tata DoCoMo. TRAI, in its November 2013 report mentioned Tata DoCoMo

as the biggest loser in subscriber base. In its December 2013 report released recently (February

17, 2014), Tata DoCoMo ranks second in the biggest losers list after BSNL.

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Source: TRAI December 2013 report (Released on 17 February 2014)

We can observe that its market share is taken up by other big house Indian companies such as

Bharti, Reliance and Idea. We also observe that Vodafone; a foreign player has been gaining a

larger chunk of this over the months. Here, we need to analyze and understand the reasons for

this decline in market share of Tata DoCoMo. Hence we propose our MDP, How to increase

the market share of Tata DoCoMo?

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SWOT ANALYSIS OF TATA DOCOMO

RESEARCH OBJECTIVES

We have identified 14 different Research problems which needs to be answered so as toprovide a clear picture about the perception of TATA DOCOMO as a cellular services brand. We

can then understand what drives customer satisfaction and increases visibility so that we can

increase the Market share of TATA DOCOMO by coming up with a suitable strategy.

STRENGTHS

1.First to introduce secondstariff plan (seconds pulse)

2.Good brand image of Tataservices

3.Having large variety of plans

4.Plans are affordable by anycommon person.

WEAKNESSES

1.Signal strength.

2.Customer services are notsatisfactory.

3. Late entry into the market incomparison to its competitors

OPPORTUNITIES

1.Expansion of its services.

2.To introduce new plans forinternet users.

3.Advent of 4G in India

4.To introduce new combinedplans like, SMS, Internet.

5. Cash Transfer mechanismsimilar to Airtel Money

THREATS

1.Tata has to clarify whether1ps/sec will continue till its

lifecycle.

2.Heavy competition from allother network providers.

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1. What is the influence of sales promotion and situational factors on buying behavior?2. What is the matching congruity of DOCOMOs image with self- image?3. What is the Demographic and Psychographic characteristic of a DOCOMO user and non-

DOCOMO user?

4. What is the attitude of consumer towards different service providers?5. What is the perception of customer about the support extended by TATA DOCOMO

customer service?

6. What is the most frequently sold top up pack amongst TATA DOCOMO consumers?7. What would be the most ideal combination of Data, Duration and cost for a 3G pack?8. What is the perception of DOCOMO consumers about the network connectivity?9. What are the choice criteria for a consumer in prepaid and postpaid purchase?10.How strongly do customers associate DOCOMO with the TATA brand?11. What is the chief mode of recharge for the average DOCOMO consumer?12.How strong is the brand image of TATA DOCOMO in the rural markets?13.What percentage of DOCOMO users are in the age of 20-35?14.What percentage of DOCOMO customers are smart phone users?

Hypothesis1. Sales promotion drives the consumer to subscribe to a service more than any anothermarketing communication

2. Low tariff rate is the most effective sales promotion for TATA DOCOMO.3. The youth prefer TATA DOCOMO more than old people.4. People from metros prefer TATA DOCOMO more than people from rural areas.5. People using CUG facilities tend to us TATA DOCOMO more than any other serviceprovider.

6. TV Ads are most informational to create awareness about Tata DoCoMo7. Customers who use Internet Service and 3G on their phone use DoCoMo services8. Low tariff rate is the most important sales promotional factors for subscribing to DoCoMo

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9. DoCoMo users are more (a) Business oriented (b) Community minded (c) youthful (d)Opinion leaders than non-DoCoMo user

10. DoCoMos brand attitude affects DoCoMos preference among the service users

Questionnaire

Personal Details

Sex: Male Female

Age between: below 25years 25-35years

35-55 years 55 and above

Occupation: Student Self-Employed Home Maker

Govt. Service Retired

Education Matriculation Diploma

Graduate Post Graduate

Marital Status Single Married

State of Current Residence: ____________

1. Which cellular service provider are you presently subscribed to?Airtel Reliance Docomo Vodafone Idea Others

2. Type of ConnectionPost- Paid PrePaid

3. How do you rate your present service provider?Excellent Good Average Below Expectations

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4. What is the most important reason for your choice of the service provider?Network Coverage Recharge Plans Lower Tariff Rates VAS

5. How much does your monthly telephone expense run into?< Rs.100 Rs. 100- 200 Rs.200-500 >Rs.500

6. Which brand of mobile phone do you use? (Nokia, Samsung) ____________________7. Is your mobile phone 3G supported? Yes No Dont know8. Do you use Internet Services on your phone? Yes No9.

How do you recharge your phone?

Recharge Card MobileShop Online

10.List the 3 most highly used social networking apps on your phone.a) _____________b) _____________c) _____________

11.How are you get information about new plans/offerings by your cellular provider?Newspaper & Magazines TV ads Internet

Pamphlets and Flyers Friends & Relatives

12.How important are the following factors in your choice for a Cellular Service Provider?(Please Tick)

Very Important Important Neutral Not Important

Network

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Value Added Services

Tariff Rate

Cellular Provider of

Friends/Acquaintances

13.Rank the cellular providers based on your perception, for the following attributes:Rank providers from 1{Highest} to 5{Lowest}.

Airtel Vodafone Docomo Idea Reliance

Network

Coverage

Tariff Rate

Internet

Services

Customer

Service

Advertisements

and Promos

14.Rank the following factors which influencer your choice for a cellular providerHighly

Inflential

Very

Influential

Moderate

Infleunce

Not

Influential

Dissuasive

factor

Friends

Acquaintances

Brand Ambassadors

Customer Service

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