CONTENTS

CHAPTER 1 Page 5Executive Summary

CHAPTER 2 Page 6An Introduction

CHAPTER 3 Page 10

Literature Review

CHAPTER 4 Page 27

Research methodology

CHAPTER 5 Page 32

Analysis & Conclusion

CHAPTER 6 Page 40

Annexure

CHAPTER 7 Page 47

Bibliography

1

EXECUTIVE SUMMARY

The research proposal gives the problem statement which is to

study the popularity of Tata DoCoMo amongst youth. The research

objective is:

To study the awareness

To study the acceptability

To study the demand

of Tata DoCoMo amongst youth.

Research design which the research group will follow is to undertake

descriptive research.

The benefits of study is that it will help us in identifying the perception

of Tata DoCoMo amongst youth & will also help us to know the best

suited or most wanted offer of Tata DoCoMo. The importance of study

is that it will also help to face competition in the market once number

portability is established.

The research group has selected non probability method of sampling.

The sample comes out to be 50 of which 25 males and 25 females

belonging to age group of 20-25 years will be sampled by contact

method of questionnaire. The research group plans to analyze the data

using tools like editing, coding, tabulation, questionnaire design.

The bibliographies, appendices, the research group used to make this

research proposal are given at the end. The research proposal is

comprehensive study of the proposed research that the research group

plans to conduct.

2

Introduction

3

PROBLEM STATEMENT

Popularity of Tata DoCoMo amongst

Youth

4

OBJECTIVE AND RATIONALE FOR THE PROJECT

Tata DoCoMo has introduced the new pulse rate i.e 1p/sec &

penetrated the market. 1p/sec is equivalent to 60p/min. Is our youth

ready to accept & switch over to new pulse rate? Maximum new mobile

users are the youth.

Therefore, the objective of the project is

TO STUDY:

Awareness

Acceptability

Demand

of the Tata DoCoMo amongst the youth

So the decisions can be made regarding new offers & promotion

to attract more youth. Because the war is no more for the network

coverage but for the value added services & better packages.

5

RESEARCH DESIGN:

DESCRIPTIVE

The research group will use descriptive research design where the

main technique would be survey. This method has been adopted as it

will help us to understand the Popularity of Tata DoCoMo amongst

youth

Data Collection Sources

Secondary Sources

Internet

Primary Sources

Surveys(Interview/Questionnaire)

6

Literature Review

7

COMPANY OVERVIEW

"As a partnership of two pioneering brands, TATA DOCOMO promises to

deliver relevant new applications and services that will make everyday

life simpler and more enjoyable for the consumer. In a market that is

cluttered with many operators and confusing options, we will offer

simplicity to consumers by being the country's most transparent,

innovative and liberating telecom brand." - Deepak Gulati,

President, GSM Business, Tata Teleservices Limited, in June

2009.

On June 10, 2009, Tata Teleservices Limited (Tata Teleservices), a

CDMA mobile service provider in India, and NTT DoCoMo Inc.

(DoCoMo), a Japan-based mobile phone operator, unveiled a new brand

identity for their GSM service - Tata DoCoMo. Commenting on the new

brand identity, Anil Sardana (Sardana), Managing Director of Tata

Teleservices said, "TATA DOCOMO is a natural choice of GSM brand-

name for us, since it will provide customers a dual advantage-trusted

service from the House of Tata, riding on the technological superiority

of NTT DOCOMO."

DoCoMo was founded in August 1991 as a subsidiary of Nippon

Telegraph and Telephone Corporation (NTT). To reduce its monopoly in

the telecom sector, NTT's mobile communication network was spun-off

in 1992 to form DoCoMo. The new division targeted the mobile cellular

service market in Japan. As of March 2008, DoCoMo had a customer

base of 53 million users covering more than half of Japan's cellular

market. However, since 2006, the company was losing its market

share due to aggressive strategies adopted by low cost competitors,

primarily SoftBank Mobile Corp. that sparked a price war in the market.

When mobile number portability (MNP) was introduced in Japan in

2006, DoCoMo was adversely affected with a drop of the company's

8

market share to 49.7% DoCoMo was also unable to compete with its

rivals in terms of new customer acquisition.

Tata Teleservices was incorporated in 1996 as the telecom division of

the Tata Group lead by Tata Sons. It provided CDMA service in India

under the brand 'Tata Indicom'. Its array of telephony services included

mobile services, wire-line services, public booth services, and wireless

desktop phones. As of 2009, it catered to around 37 million customers

across 320,000 towns and villages of India. In November 2008, Tata

Teleservices announced it was entering into a JV with DoCoMo.

Under the JV, DoCoMo bought a 26 percent stake in Tata Teleservices

for US$ 2.7 billion. Subsequently, DoCoMo made an open offer for 20

percent of the outstanding equity of Tata Telecom Maharashtra Limited

(TTML). In addition to this, DoCoMo acquired 6 percent of additional

shares in the company from the Tata Group.

INDUSTRY OVERVIEW

The Indian telecommunications industry is one of the fastest growing in

the world and India is projected to become the second largest telecom

market globally.

9

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

number of telecom subscribers in the country increased to 562.21

million in December 2009, an increase of 3.5 per cent from 543.20

million in November 2009. With this the overall teledensity (telephones

per 100 people) has touched 47.89.

The telecom industry notched up US$ 8.56 billion in revenues during

the quarter ended December 31, 2009 helped by a recovery in

earnings from both mobile and landline services.

According to Business Monitor International, India is currently adding 8-

10 million mobile subscribers every month. It is estimated that by mid

2012, around half the country's population will own a mobile phone.

This would translate into 612 million mobile subscribers, accounting for

a tele-density of around 51 per cent by 2012.

Moreover, according to a study conducted by Nokia, the

communications sector is expected to emerge as the single largest

component of the country's GDP with 15.4 per cent by 2014.

The Indian equipment market was estimated at US$ 24 billion in FY09.

Finnish giant Nokia is the market leader, with over US$ 3.4 billion

revenues in 2008-09, followed by Ericsson at US$ 2.11 billion.

With the availability of the 3G spectrum, about 275 million Indian

subscribers will use 3G-enabled services, and the number of 3G-

enabled handsets will reach close to 395 million by 2013-end,

estimates the latest report by Evalueserve.

According to a Frost & Sullivan industry analyst, by 2012, fixed line

revenues are expected to touch US$ 12.2 billion while mobile revenues

will reach US$ 39.8 billion in India.

10

Moreover, in an attempt to boost auction of 3G spectrum, the

government has allowed prospective bidders to raise short-term funds

from domestic market, which could be refinanced through external

commercial borrowings (ECBs) within 12 months. The government is

expected to mop up US$ 7.53 billion through the auction of 3G

spectrum, which is likely to be completed by March 2010. It has fixed

the reserve price at US$ 753.74 million.

State-run telecom operator BSNL has rolled out 3G services in 318

cities with 856,000 subscribers. BSNL has plans to cross 400 cities by

March 31, 2010 and this will be increased to 760 cities by September

2010. And even as debate on 3G continues, TRAI has started

consultation on the next level of telecom services. Fourth generation or

4G offers download at faster speeds.

Value-Added Services Market

Currently, mobile value-added services (MVAS) in India accounts for 10

per cent of the operator's revenue, which is expected to reach 18 per

cent by 2010. According to a study by Stanford University and

consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74

billion by 2010.

In a bid to increase revenue from add-on services, India's top two

mobile firms, Bharti Airtel Limited and Reliance Communications both

plan to launch online mobile applications stores.

Bharti Airtel will provide more than 1,250 applications across 25

categories including games, books and social networking on its

applications store.

Reliance Communications’ first version of its applications store would

go live for GSM customers by the end of February 2010, and by the

11

end of March 2010 an expanded version would be available to its code

division multiple access (CDMA) customers as well.

Major Investments

The booming domestic telecom market has been attracting huge

amounts of investment which is likely to accelerate with the entry of

new players and launch of new services.

Norway-based telecom operator Telenor, has bought a further 7

per cent in Unitech Wireless for a little over US$ 430.70 million.

Telenor now holds 67.25 per cent. Last year, it had bought a 60

per cent stake for US$ 1.23 billion.

The government has approved the foreign direct investment

proposal of the Federal Agency for State Property Management

of the Russian Federation to buy 20 per cent stake in telecom

service provider Sistema-Shyam for US$ 660.1 million.

Tata Teleservices is planning to invest an additional US$ 1 billion

in its recently-launched GSM service Tata DoCoMo. It had already

committed an investment of US$ 2 billion for the GSM services

when it was launched in June 2009.

Reliance Infratel, the tower subsidiary of Reliance

Communications (RCom), will build 56,596 telecom towers by

financial year 2010, increasing the total number of towers to

100,000.

BSNL, India's leading telecom company in revenue terms, will put

in about US$ 1.16 billion in its WiMax project.

Vodafone Essar will invest US$ 6 billion over the next three years

in a bid to increase its mobile subscriber base from 40 million at

present to over 100 million.

12

Manufacturing

India's telecom equipment manufacturing sector is set to become one

of the largest globally.

Mobile phone production is estimated to grow at a CAGR of 28.3 per

cent from 2006 to 2011, totalling 107 million handsets by 2010.

Revenues are estimated to grow at a CAGR of 26.6 per cent from 2006

to 2011, touching US$ 13.6 billion.

Rural Telephony

Rural India had 76.65 million fixed and Wireless in Local Loop (WLL)

connections and 551,064 Village Public Telephones (VPT) as on

September 2008. Therefore, 92 per cent of the villages in India have

been covered by the VPTs. Universal Service Obligation (USO) subsidy

support scheme is also being used for sharing wireless infrastructure in

rural areas with around 18,000 towers by 2010.

Policy Initiatives

The government has taken many proactive initiatives to facilitate the

rapid growth of the Indian telecom industry.

100 per cent foreign direct investment (FDI) is permitted through

the automatic route in telecom equipment manufacturing.

FDI ceiling in telecom services has been raised to 74 per cent.

Introduction of a unified access licensing regime for telecom

services on a pan-India basis.

Introduction of mobile number portability in a phased manner,

starting in the fourth quarter of 2008.

The government is implementing a program of connecting

66,822 uncovered villages under the Bharat Nirman programme.

13

The Department of Telecommunications (DoT) has stated that

foreign telecom companies can bid for 3G spectrum without

partnering with Indian companies. Only after winning a bid,

would they need to apply for unified access service licence

(UASL) and partner with an Indian company in accordance with

the FDI regulations.

The Road Ahead

The target for the 11th Plan period (2007-12) is 600 million phone

connections with an investment of US$ 73 billion. Apart from the basic

telephone service, there is an enormous potential for various value-

added services.

According to the CII Ernst & Young report titled 'India 2012: Telecom

growth continues', revenue from India's telecom services industry is

projected to reach US$ 54 billion in 2012, as against US$ 31 billion in

2008

COMPETITION ANALYSIS

The Cellular Operators Association Of India (COAI) has just released

their January 2010 list for the number of GSM subscribers across the

various cell phone networks in India. Here is the subscriber count and

market share of the various mobile network operators.

14

Total Users : 395.3 million

Tata Teleservices who do not report the numbers to COAI have claimed

to have reached a total subscriber count of 60 million

In June 2009, Indian telecom service provider Tata

DoCoMo announced that it would bill at the rate of one

paisa (around 0.02 cents) per second. "In a market that

is cluttered with many operators and confusing options,

we will offer simplicity to consumers by being the

country's most transparent, innovative and liberating

telecom brand," said Deepak Gulati, Tata Teleservices

president, GSM (global system for mobile communications) Business. A

few months later -- in September -- it unveiled the Diet SMS plan, one

paisa per character with no charge for spaces between words. On

November 22, it extended the one paisa per second plan to roaming

services also.

"When a subscriber is roaming, most telecom operators in India charge

a minimum of 50 paise to 60 paise per minute, even when the call

15

duration is less than a minute," Gulati said in a press statement.

"Under the Tata DoCoMo roaming offer, subscribers will be charged

only for what he or she uses -- at one paisa per second. For instance, a

15-second call made or received while roaming will elicit a charge of

15 paise only -- not up to Re. 1 on a per minute basis, as is the industry

norm."

Tata's competitors have had to follow suit, and the result has been a

price war with no apparent end in sight. On October 30, 2009, market

leader Bharti Airtel took the plunge with the one paisa tariff. In

November, it also cut roaming rates to 60 paise per minute for calls

within its network and 80 paise per minute for calls to other networks.

On November 24, Bharti took its lowered rates overseas: U.S.

customers using calling cards to make calls to India would also be

billed at one paisa per second.

'We Did Not Have a Choice'

The company was not happy about these forced countermeasures and

their inevitable impact on profits. "The tariff war has not been

launched by us," Bharti chairman and managing director Sunil Mittal

told journalists at the World Economic Forum meeting in Delhi in early

November. "We responded as we did not have a choice. We have

always said we will never lead the price war, but responding to the

needs of the market is something that every sector and industry has to

do." Although Bharti is the market leader, it has never directly pursued

market share; its focus has been share of industry revenues.

An Economic Times Intelligence Group (ETIG) survey shows that it is

holding its own. "While the telecom sector's revenues and profits have

plunged in the quarter ended September 2009, large private operators

such as Bharti Airtel, Reliance Communications (RCom), Vodafone

16

Essar, Idea Cellular and Aircel have all managed to increase their

revenue market share during this period," according to the survey

report. Bharti's revenue market share has increased to 29.3% as of

September 2009, compared to 27.6% in June the same year, while

Vodafone Essar now accounts for 15.7% of the total earnings of the

sector as against 14.6% in June 2009.

On the losing side are the public sector telcom firms -- Bharat Sanchar

Nigam Ltd. (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL). On

December 1, however, MTNL fired its own salvo by reducing its rates to

half a paisa per second for in-network calls and one paisa per second

for calls made outside its network. "Our pay-per plan is the most

affordable in the industry," said MTNL chairman and managing director

R.S.P. Sinha in a press statement when the new rates were announced.

Plunging Revenues

The price war's impact on revenues is already apparent. "The brutal

tariff war that has forced all operators to slash call rates has also

resulted in the sector's sales figures dipping over the past six months

despite the addition of 80 million customers in the period," according

to ETIG. "The industry clocked about Rs. 38,755 crore in September

2009, which was lower than the sector's revenues in the quarter ended

December 2008, when it recorded Rs. 39,408 crore despite having 125

million fewer customers then." The report notes that 13 operators are

fighting for share in a market that many believe can optimally support

four or five -- and four more players are planning to enter the market

by next year. According to Arvind Mahajan, executive director,

advisory services at KPMG: "At this point in time, it is all about

grabbing subscribers."

17

"Industry revenue growth for the quarter ending September 2009 was

1.7% quarter-on-quarter (Q-on-Q) and 8.7% year-on-year (Y-on-Y),

substantially lower than subscriber growth at 10.4% Q-on-Q and 49.6%

Y-on-Y," says a report by equity research firm Enam Securities. "The

aggressive entry by new GSM players has compelled the incumbents to

reluctantly join the tariff war to protect their market share."

At Vodafone Essar, for instance, service revenues dipped 7% from the

June quarter to the September quarter. The EBITDA (earnings before

interest, taxes, depreciation and amortization) margin is also down

from 28.4% in the first half of 2008-09 to 24% in the corresponding

period of 2009-10. "The decline in the EBITDA margin was primarily as

a result of the expansion into rural areas and market price reduction

offset by scale efficiencies," says Samaresh Parida, director, strategy

at Vodafone Essar. He adds that this is entirely in line with industry

performance; as noted by ETIG, Vodafone has actually done better

than most of its competitors on the share-of-revenue metric.

Vodafone has also joined the one paisa bandwagon. "One paisa per

second tariff is one of the several tariff options available to our

customers," says Parida. "We continue to also offer many per minute

tariff options. Our customers can make the choice."

Giving a choice is not necessarily pro-consumer. According to Mahesh

Prasad, president of RCom, Indian telecom companies combined have

2,700 different billing plans across the country. On October 5, RCom

launched a 50 paise per minute plan called Simply Reliance. Under the

plan, all calls -- whether local or long distance, to landline or mobile --

will cost only 50 paise a minute. Currently, RCom itself has 265 plans.

"Henceforth there will be just one plan," said Prasad, though older

customers will be given a six-month period to migrate.

18

The SMS Front

On November 28, RCom opened another front in the price war -- SMS

(short message service). The company unveiled two plans charging

one paisa per SMS message. Under the first, customers pay Re. 1 a day

and are entitled to send an unlimited number of free SMS messages.

Alternatively, you can buy a Rs. 11 monthly voucher and each SMS

message will cost just one paisa.

Tata DoCoMo has been heavily promoting its one paisa per character

Diet SMS plan. Now, it is inevitable that they and other competitors will

have to match RCom's rates. This will not mean a huge drop in

revenues: According to estimates, SMS brings in about 5% of total

telecom revenues for Indian companies. But companies' bottom lines

will still be affected. The Telecom Regulatory Authority of India (TRAI)

has found that each SMS costs the service providers less than one

paisa, while they have been charging customers 60 paise to Re. 1

(depending on the plan).

Why has the competition heated up so intensely? New entrants like

Tata DoCoMo that are capturing market share are one reason. For the

Tatas, the paisa per second plan appears to have worked. According to

TRAI data, the number of telephone subscribers in India increased to

525.65 million at the end of October, up from 509.03 million in

September. Tata DoCoMo grew 23.16%, the highest for all operators. In

absolute numbers, the Tatas added about four million subscribers

against three million each for Vodafone and Bharti and two million for

19

RCom. This is no flash in the pan; in July and August, the Tatas showed

the fastest growth as well.

The Tatas, though just six months into their launch with DoCoMo (see

"NTT DoCoMo's Tata Deal: Why Global Telecom Firms Want to Dial

India"), already have an established presence in the market through

Tata Indicom. New entrants are planning to kick off operations in the

next few months, including Norway's Telenor, Bahrain's Batelco and

Abu Dhabi's Itisalat. "We will not be the most aggressive price runner

in the market," according to Telenor CEO Jon Fredrik Baksaas, who

spoke to the press in India recently. "We will be competitive, but not

the most aggressive."

There are a couple of other reasons for this frantic activity. On

November 20, TRAI announced that mobile number portability (MNP)

would be introduced beginning on December 31. This allows users to

move from one service provider to another or even from one

technology to another. More importantly, TRAI said the maximum

porting charges would be Rs. 19. This makes operator-hopping quite

cheap. "MNP will add more pain to the situation," says Mahajan of

KPMG. According to a report by Anand Rathi Financial Services, the

move will lead "to churn rates higher than the current 4.5% to 8.0%

per month -- at least in the short run."

The level of satisfaction with service providers is low in the Indian

telecom space. According to a July Nielsen Mobile Consumer Insights

study gauging consumer attitudes and behavior towards mobile

operators in India, 18% of Indian mobile phone subscribers plan to

change their mobile operator when MNP is introduced. The study found

that attrition rates would be the highest for RCom and Tata Indicom.

3G on the Horizon

20

The second big event on the horizon is the launch of 3G (third

generation) services next year. The auction for 3G licenses has been

delayed. But the proceeds are needed to trim the fiscal deficit. In his

budget, Finance Minister Pranab Mukherjee had estimated that Rs.

20,000 crore would come in through the sale of these licenses, so

there is enough incentive for the auction to happen during this

financial year (ending March 2010). The base price for these licenses

has now been fixed at Rs. 4,040 apiece. Analysts estimate that Rs.

30,000 crore to Rs. 40,000 crore could come in through the sale. The

department of telecommunications proposes to hold the auction on

January 14, 2010. "An apparent lack of interest in the auction for high-

speed 3G and broadband wireless access spectrum won't stop the

government from getting bidders to cough up the cash that it needs to

control a burgeoning deficit," according to business daily Mint. "That's

because many potential bidders running 2G services, already

scrambling for scarce spectrum to carry mobile phone calls,

desperately want the additional frequencies that will come with a 3G

license."

Some say this is the very reason why foreign companies don't seem

too interested in bidding for the 3G licenses. "Foreign interest in the

form of participation in the pre-bid conference has been low probably

on account of two factors," says K. Raman, practice head, telecom,

media & technology at the Tata Strategic Management Group (TSMG).

"First, there are regulatory uncertainties with respect to eligibility of 2G

spectrum along with a winning 3G bid. Secondly, a pure 3G play may

not be attractive for operators and would not make as much business

sense as an overlay on 2G." Adds Alok Shende, principal analyst at

Ascentius Consulting: "A standalone 3G service is unlikely to succeed.

The business will start with virtually no consumers, unlike the current

players who will have the advantage of captive 2G customers."

21

According to Shende, "Indian telecom markets are likely to undergo a

tectonic shift with the introduction of new licensees, MNP and the

launch of 3G services all scheduled in the next one year. New players

will nibble at the market share of the incumbents and -- with regulatory

constraints on M&A activity -- consolidation, a process that could have

cleared the market, will be artificially restrained. The rural markets will

continue on their growth trail. Today, only 28% of the subscriber base

is contributed by the rural segment."

Growth at Home and Abroad

The rural market is the other problem area. This is where the growth is

-- but it is also where very little money can be made. "Rural markets

are still under-penetrated" -- at about 15% -- "so there is still a strong

upside merely on customer addition," says Parida of Vodafone Essar.

The hitch is that some of the plans don't make money. The average

revenue per user (ARPU) is now down to around Rs. 200 a month for

the industry. In rural areas, however, it is estimated to be in double

digits. "It certainly makes it harder to ensure viability, as the bulk of

users are lower-income and less tech-savvy," says Rajesh Chakrabarti,

assistant professor of finance at the Hyderabad-based Indian School of

Business (ISB). "The most [celebrated] aspect of the Indian telecom

revolution, as well as its prime driver, was the mind-boggling reduction

of rates in a short span of time. Competition among private players

was most certainly the key for this. But the model seems to have been

that high-margin products would subsidize access. It now seems that

most Indian users are unlikely to use the more sophisticated and high-

margin features for a long time to come. Nor is the typical handset

amenable to most such features. So ARPUs are likely to stay low for a

long time, and the subscriber may not move beyond the most basic

22

functions. The per-second billing will just worsen the ongoing price

war."

If looking inwards -- to rural India -- doesn't work in terms of immediate

returns, there may be a solution in looking outwards. Indian companies

are trying to balance their bets by foraying abroad. If the low-cost

model works there, it could bring some relief to the bottom line. The

second merger attempt between Bharti and MTN of South Africa may

have failed (See Now That the MTN Merger Deal Has Collapsed, What's

Next for Bharti Airtel?), but the Essar Group (which owns a 9.9% stake

in Loop Telecom, apart from its Vodafone Essar interests) has just

bought up Dhabi Telecom's African assets. And the public sector MTNL

and BSNL are eyeing Zain Telecom of Dubai. "Indian telecom

companies are looking at markets outside India to be able to grow

revenues at the historical pace they are used to," says Raman of

TSMG. "The markets that they have attempted to enter are ones where

tariffs are relatively high and future growth through subscriber addition

is possible. In other words, replicating an Indian model of telecom

growth is possible in such countries. If execution is handled well, there

is no reason to believe that such an approach will not work."

"Telecom is essentially a business of scale," says Chakrabarti of ISB.

"So the bigger the scale, the lower the costs -- proportionately -- are

going to be. Hence, venturing abroad would be natural in some sense.

It may work, provided the regulatory issues and infrastructural and

cross-border operational integration challenges can be handled."

Chakrabarti sees problems, but he is not pessimistic. "The industry

should be growing steadily in the years to come. There is likely to be a

shake-up with some consolidation and exits, and rates may stabilize or

even rise a bit. What we are seeing is not so uncommon for new

industries -- recall the dot-com bubble and bust in the first phase of

23

Internet growth -- when players overshoot on the basis of

overoptimistic projections. This may be the time for a reality check and

reassessment for the players as well as regulators. But in the long run,

the prospects for the industry are quite good."

"The future of the industry needs to be seen across various timelines,"

says Raman of TSMG. "The next six months will see new operators

completing their footprint and at least three serious operators

launching services in the country. All of this points to an intense phase

of competition and price cuts. Factor in the 3G auction, and one would

see below par profitability for [telecom companies] over the next six to

eight quarters. The industry could also expect to see consolidation as

much as and as fast as regulation allows it to happen."

According to Parida, the number of players in the Indian market has led

to fragmentation, and that needs to be addressed. "We feel market

forces must be allowed to have a freer play in India and that will

certainly lead to a consolidation phase ahead. Telecom, particularly

mobile telephony, has become an integral part of India's social and

economic fabric. As an industry, it is here to stay."

The industry will stay, but not the large number of companies in the fray, according to

Raman. "Operators with access to resources through internal accruals or credit lines will

stand to gain from [any coming] consolidation."

24

Research Methodology

25

SAMPLING DESIGN:

Process of Sampling

Target Population:

The population is defines in terms of:

o Element: The element of our research is popularity of Tata

DoCoMo amongst youth

o Sampling unit: Sampling unit would consist of people who

use mobile phones.

26

Define the population

Identify Sampling Frame

Specify Sampling unit

Select Sampling method

Determination of Sample Size

Specify sampling plan

Selection of Sample

o Extent: Extent of our research is limited to humans all over

the world.

o Time: February 1 to February 28 , 2010.

Sampling Frame:

Sampling frame is the list of elements from which the sample is

drawn. Sampling frame for our research would be youth,

housewives, corporate who use mobile phones.

Sample Size:

o This means we need to decide “how many elements of the

target population are to be chosen?” The sample size

depends upon the type of study that is being conducted.

The sample size depends upon the resources available.

The sampler size is determined by:

o N= (z*s/E)^2

o Where

o n=sample size

o s=standard deviation

o E=error / acceptance level

o z=confidence level

o The sample size for our research project is 50.

Sample Details:

Age (in

years)

Male Female Total

27

20-25 25 25 50

Total 25 25 50

Sampling Procedure:

There are 2 types of sampling methods probability and non

probability.

Probability sampling methods ensure that the database of users

is known.

Non-Probability sampling methods the database of users is not

available.

In our research project, we chose non-probability sampling

technique as the data related to respondents is not available. We

chose judgmental sampling technique.

SAMPLING METHOD:

Instruments of data collection:

A structured Questionnaire with both open ended and close

ended questions would be used for data collection from the

Target respondents.

Contact method:

The Target respondents would be tapped from different

possible locations like Malls, Institutes, and Corporate offices

randomly as we do not have the pre-hand data of the

respondents who are using mobile phones.

Data collection sources:

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o Primary: A research with the help of Questionnaire

would be conducted to gather primary data.

o Secondary: Data from internet as well as various books

would be collected in order to study the awareness,

acceptability & demand of Tata DoCoMo.

DATA ANALYSIS:

Structured tools: Tools like Co-relation, Regression, etc.

would be used in order to compare the acceptability of Tata

DoCoMo.

Software: SPSS

Editing: Editing helps in avoiding the unwanted part from the

Questionnaire which may not be very useful in the study.

Coding: Coding is done for the open ended questions.

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Data Analysis&

Conclusion

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DATA ANALYSIS

Maximum number of respondents use Vodafone

(56%) & 20% use Airtel. Rest of the respondents use other

service provider.

Maximum number of respondents spends more than Rs. 500 & majority of the respondents spend more than Rs. 100 per

month. Majority of respondents talk on mobile for more than 15 min daily.

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According to the respondents, 33 respondents (66%) consider good network coverage as one of the important criteria,

whereas 37 respondents (74%) consider price as one of the important criteria.

Around 58% of the respondents have not changed their service provider ever.

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According to 80% of the respondents, they would not like switch to any other service provider. But maximum prospective switchers’ i.e 7 out of 15 respondents are prospective switchers

& would like to switch to Tata DoCoMo.

According to the survey, 35 respondents i.e 70% of the respondents would change their service provider.

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Out of 50 respondents, only 13 respondents are using 1p/s plan i.e 26%; Whereas 21 respondents i.e 42% are willing to take

1p/s plan.

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According 17 respondents, call rates are as good as their current plan.

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Also, 15 respondents think that Tata DoCoMo offer better ISD rates than their current service provider & 14 respondents think that they are as good as their current plan.

According to 25 respondents i.e 50%, SMS package is better offered by Tata DoCoMo.

Also, 23 respondents i.e 46%, consider Buddy Net service to be better than their current service provider.

Having compared all the schemes with current plan, 20 respondents find SMS offer by Tata DoCoMo to be the most attractive scheme.

78% respondents think that Tata DoCoMo should introduce Post Paid scheme.

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CONCLUSION

The findings are as follows:

It is seen that 98% of the respondents are aware of the Tata

DoCoMo & their 1p/s plan. Therefore the awareness level of Tata

DoCoMo as a brand is very high.

While choosing a service provider good network coverage & price

play a critical role in decision making process.

Generally respondents haven’t changed their service provider so

frequently but they will switch if number portability exists.

As per this survey, majority of the respondents would shift to

Tata DoCoMo if their existing number becomes portable.

Also, majority of the respondents would like to shift to 1p/s

scheme.

But at the same time current service providers of the majority

youth is offering something equivalent or better than 1p/s.

Youth finds the SMS plan (pay for first 3 SMS & get 100 free)

attractive which is applicable to Maharashtra circle.

Also, one of the major reasons for not switching to Tata DoCoMo

is unavailability of Post paid offers.

Postpaid plans will be welcomed by the youth.

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Therefore, Tata DoCoMo has a future with the new pulse rate & SMS

plans.

And, as the number portability is expected by the 2010 end, the

market shows great potential for new pulse rate & hence Tata

DoCoMo.

The youth which has great SMS usage will be switched over to Tata

DoCoMo if number portability comes into existence.

Annexure

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Survey on Tata DoCoMoDo you use mobile? *

Yes

No

How long have you been using mobile phone? *

for less than 1 year

1 to 3 years

3 to 5 years

more than 5 years

Name the current mobile service provider *

Vodafone

Airtel

Tata DoCoMo

Reliance

Idea

Other:

Purpose of usage *

Business

Personal

Both

How much do you spend on mobile service per month? *

Less than Rs 100

Rs 100 to rs 300

Rs 300 to Rs. 500

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More than rs 500

How much air time do you spend daily on mobile phone? *

Less than 15 min daily

15 min to 30 mins daily

30 min to 1 hr daily

More than 1 hr

How often do you switch to another service provider? *

Less than 6 months

6 months to 1 yr

1 yr to 2 yrs

More than 2 yrs

Never

What is the most important factor you considered when you choose a mobile service provider? *

Good network coverage

Price

Value added service

Customer Service

Other:

Rate your current service provider *

1 2 3 4 5

Worst Excellent

Would you switch to another service provider? *

Yes

40

No

If yes, then which service provider?

Vodafone

Airtel

Tata DoCoMo

Aircell

Idea

Reliance

Would you consider swapping the service provider if number portability is introduced? *

Yes

No

Are you aware of Tata DoCoMo as a mobile service provider? *

Yes

No

Are you using any of the 1 paisa/ sec scheme? *

Yes

No

If no, then are you interested in 1 paisa/second scheme?

Yes

No

Rank the following services offered by Tata DoCoMo

Consider your current plan at Neutral & then compare, whether Tata DoCoMo is better or worse than your current plan

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Call Rate - Anywhere in India * 1p/sec

1 2 3 4 5

Worst Excellent

SMS offers * 60p/sms, pay for 3 SMSs & get 100 SMSs free

1 2 3 4 5

Worst Excellent

Buddy Net * 1p/ 6sec, Rental Rs. 7/week

1 2 3 4 5

Worst Excellent

ISD call rate * 11p/sec

1 2 3 4 5

Worst Excellent

Choose the most attractive scheme offered by Tata DoCoMo * Choose the scheme for which you would shift to Tata DoCoMo

Call rates - 1p/sec

SMS - pay for 3SMS & get 100 free

Buddy Net - 1p/ 6sec

ISD- 11p/sec

Should Tata DoCoMo introduce post paid plans? *

Yes

No

Personal Information

Name

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Age *

Below 15 yrs

15 yrs to 25 yrs

25 yrs to 35 yrs

35 above

Gender *

Male

Female

Education *

Under Graduate

Graduate

Post Graduate

Occupation *

Student

Self employed

Service

Dependent

Annual Family Income *

Less than 3 Lacs

3Lacs to 5 Lacs

5 Lacs to 7 Lacs

Above 7 Lacs

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Bibliography

44

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BIBLIOGRAPHY

www.wikipedia.com

www.google.com

www.questia.com

www.businessworldindia.com

www.hindubusinessline.com

www.education.nic.in

www.livemint.com

www.advertising.about.com

www.economictimes.com

www.digital.afaqs.com

www.cioa.com

www.ibrf.com

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