EXECUTIVE SUMMARY TATA DOCOMO is Tata Teleservices Limited's TTSL telecom service on the GSM platform arising out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Tata Teleservices has received a pan- India license to operate GSM telecom services, under the brand TATA DOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and has already rolled out its services in various circles. India is the fastest growing major mobile market in the world .Building on leading position in the market, TTSL. Aims to capitalize on the growth potential to significantly increase the subscriber base and market share. The telecom sector is increasing day by day and the competition is getting more and tougher. Initially Tata service was providing CDMA and after tie up with DOCOMO they come up in .
Transcript
EXECUTIVE SUMMARY
TATA DOCOMO is Tata Teleservices Limited's TTSL telecom
service on the GSM platform arising out of the Tata Group's strategic alliance
with Japanese telecom major NTT DOCOMO in November 2008. Tata
Teleservices has received a pan-India license to operate GSM telecom services,
under the brand TATA DOCOMO and has also been allotted spectrum in 18
telecom Circles. TTSL and has already rolled out its services in various circles.
India is the fastest growing major mobile market in the world .Building on
leading position in the market, TTSL. Aims to capitalize on the growth potential
to significantly increase the subscriber base and market share. The telecom
sector is increasing day by day and the competition is getting more and tougher.
Initially Tata service was providing CDMA and after tie up with DOCOMO they
come up in .
OBJECTIVES OF THE PROJECT
The objectives of this study/project as follows:
To identify the strategies Tata Docomo is following to grab the Indian
market.
To study the schemes and services provided by Tata Docomo.
To study the various tariffs charged by Tata Docomo.
To study the unique features and services offered by Tata Docomo.
To perform a SWOT analysis of TATA Docomo.
To know the impact of promotional activities on the purchasing behavior of
the buyer.
To study the Customer satisfaction level regarding the services provided by
Tata Docomo.
COMPANY PROFILE
TATA DOCOMO is Tata Teleservices Limited's TTSL telecom service on
the GSM platform arising out of the Tata Group's strategic alliance with Japanese
telecom major NTT DOCOMO in November 2008. Tata Teleservices has received
a pan-India license to operate GSM telecom services, under the brand TATA
DOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and
has already rolled out its services in various circles.
The launch of the TATA DOCOMO brand marks a significant milestone
Indian telecom landscape, as it stands to redefine the very face of telecoms in
India. Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-
in the Japanese market, the company is clearly the preferred mobile phone
service provider with a 50 percent market share.
NTT DOCOMO has played a major role in the evolution of mobile
telecommunications through its development of cutting-edge technologies and
services. Over the years, technologists at DOCOMO have defined industry
benchmarks like 3G technologies, as also products and services like the i-mode
TM, mobile payment and a plethora of lifestyle-enhancing applications. Today,
while most of the rest of the industry is only beginning to talk of LTE technology
and its possible applications, DOCOMO has already started conducting LTE trials
in physical geographies, not just inside laboratories!
DOCOMO is also a global leader in the VAS (Value Added Services) space,
both in terms of services and handset designs, particularly integrating services at
the platform stage. The Tata Group-NTT DOCOMO partnership will see offerings
such as these being introduced in the Indian market under the TATA DOCOMO
brand.
TATA DOCOMO has also set up a 'Business and Technology Cooperation
Committee, comprising of senior personnel from both companies. The
committee is responsible for identification of the key areas where the two
companies will work together. DOCOMO, the world’s leading mobile operator
will work closely with Tata Teleservices Limited management and provide know-
how on helping the company develop its GSM business.
Despite being a late entrant, Tata Indicom, TTSL's CDMA brand, has
already established its presence and is the fastest-growing pan-India operator.
Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x
technology platform in India. Today Tata Teleservices Limited, along with Tata
Teleservices (Maharashtra) Ltd, serves over 37 million customers in more than
320,000 towns and villages across the country offering a wide range of telephony
services including Mobile Services, Wireless Desktop Phones, Public Booth
Telephony and Wire line Services.
HISTORY
Tata Teleservices Limited now also has a presence in the GSM space,
through its joint venture with NTT DOCOMO of Japan, and offers differentiated
products and services under the TATA DOCOMO brand name. TATA DOCOMO
arises out of the Tata Group’s strategic alliance with Japanese telecom major
NTT DOCOMO in November 2008. TATA DOCOMO has received a pan-India
license to operate GSM telecom services and has also been allotted spectrum in
18 telecom Circles. The company has rolled out GSM services in 14 of India’s 22
telecom Circles in a quick span of under six months. The company plans to
launch pan-India operations by the end of FY 2009-10.TATA DOCOMO marks a
significant milestone in the Indian telecom landscape, and has already redefined
the very face of telecoms in India, being the first to pioneer the per- second tariff
option-part of its ‘Pay for What You Use’ pricing paradigm. Tokyo-based NTT
DOCOMO is one of the world’s leading mobile operators-in the Japanese market,
the company is the clear market leader, used by over 50% of the country’s
mobile phone users.
Corporate Philosophy
With the aim of creating a new world of communications culture, we NTT
DOCOMO will devote all the skills, know-how and energy towards the
establishment of more "personal communication" with our customers that
contribute to their heartfelt satisfaction.
A New World of Communications Culture
More personal communication
Reliable access
Real time access
E-communication One-to-one “personal
This gives birth to a new world of communications culture
Freedom to enjoy communications anytime, anywhere with anyone
Opening of endless lifestyle horizons
To achieve this
In order to create a world of more innovative and enriched communications,
we will improve service quality, aggressively move forward with the
development of various services. We will also research and develop a more
advanced user-friendly communications interface, and at the same time we will
provide these services and technologies to an ever expanding area.
Customer Satisfaction:
Communications those are always ready when needed.
Capability to contact whomever, from wherever and whenever the
customer desires.
Happiness that comes from heart-to-heart communications.
Bringing customers another step closer to realizing their dreams.
Responding to every customer with consideration, courtesy and
thoroughness.
Providing products that give customers easy and convenient access to
cutting-edge functionality.
To achieve this
First and foremost, we will fulfill expectations of customers by fulfilling our
response to their needs through improved service quality, building original
networks, enriching functionality and expanding the service area. In
addition, by providing an expanding and ever-improving selection of services
at inexpensive rates, we will deliver satisfaction to a growing diversity of
customers.
Making the most of the talents of each individual in our company.
Respect for the individuality and sense of values that are unique to each
person.
Enable internal corporate communication to flow free from vertical and
horizontal organizational barriers.
Make the most of the ideas of each individual.
Foster a corporate culture that is not restricted by conventional thinking and
systems.
Create a creative office environment that supports the fulfillment of the
individual.
Fostering an "open" corporate culture that welcomes the ideas and views of
the individual.
Evaluate personnel based on their merits.
Build a company that overflows with a challenging spirit.
To achieve this
By improving our system and programs for the enhancement of human
resources and unifying our human resource development, we will empower each
individual to exert their skills to the utmost of their capabilities and discover new
potential. At the same time, we will strive to create a workplace that motivates
individuals through measures such as improvement of the working environment
and labor conditions and enhancement of health and welfare benefits.
VISION
We will leverage our strength in executing complex global scale
projects to make leading edge information and communication services
affordable by all individual consumers and business in India. We will offer
unparalleled value to create customer delight and enhance business
productivity. We will also generate value for our capabilities beyond Indian
borders while enabling millions of India’s knowledge workers to deliver their
services globally.
STATISTICS
Third largest telecom network in the world.
Error! Hyperlink reference not valid.Largest operator in INDIA is BSNL.
INDIA’S mobile market is the fastest growing market in the world.
World’s leading Japan based Telecom Company.
Over the years technologies of DOCOMO has defined industry bench
marks like 3G technology.
It is the global leader in value added services.
TATA telecom Incorporated in 1996.
Tata Teleservices is the pioneer of the CDMA 1x technology platform in
India. Deep involvement in the launch of 3G has inspired us to create an
infrastructure that will allow people and all kinds of objects to
communicate a wealth of information. Extended systems will link the
home, the office and any number of other locations to bring greater
convenience to all aspects of everyday life. For the future, it is our aim
to incorporate information gathered by all five senses to achieve an
array of services far beyond anything envisaged to date.
NTT DOCOMO is already making rapid progress in such areas through a
wide range of innovative research, building expertise and techniques as
we move forward towards exciting new business opportunities.
Innovating dreams
Our goal is to create a broad array of exciting new services. Services
that will bring undreamed-of convenience to people everywhere.
In addition to Audio Barcodes and 3D Display System introduced in this
website, cutting edge technologies beyond the imagination are already
under development. These include a system that makes distant objects
feel like an extension of the human body for ultra realistic experiences,
and advanced chips that will allow items such as household appliances
to communicate. What's more, we are actively realizing 4G technology
such as MIMO (Multiple-Input-Multiple-Output) multiplexing
technology and a wireless access communications system, as well as
contributing to the establishment of specifications for global
standardization.
Researchers at NTT DOCOMO have a clear vision of the future. A future
that will unite all of the above advances and many more, to create a
world where people can communicate at a higher level, regardless of
time and space
Telecom industry in India is dominated by major companies like Airtel,
Vodafone in GSM services.
Competition is very intense due to low differentiation.
India ended March this year with 391.76 million mobile lines and tele
density is around 36.98.
Airtel enjoys 33.9%, Idea 11.6% Vodafone 19.6 and Tata CDMA has 7.2% of
market share respectively.
PRICE
It having attractive tariff plan: TATA DOCOMO having 1paisa /sec it is
applicable for both prepaid and postpaid.
Disruptive Innovation in the Indian Telecom Industry by Tata Docomo
Wikipedia defines disruptive innovation as an innovation that improves
a product or service in ways that the market does not expect, typically by being
lower priced or designed for a different set of consumers.
Indian Telecom space was “Disrupted” by Tata Docomo when they
came out with a ‘1 paisa per second’ tariff.
We have earlier seen how Reliance India Mobile changed the mobile
industry by coming up with the lowest tariff in the beginning of this decade. The
call charges were around Rs 2-3 per minute and because of Reliance this was
brought down to around Re 1 per minute.
Tata Docomo was the next one to employ disruptive innovation in the
Indian mobile industry. Currently the game is not played on the price front but
Value added services front, which is evident from the advertisements of Airtel
(Madhavan and Vidya Balan) and Vodafone (Zoozoos) in the past.
If Aircel is redefining how telecom operators approach value added
services and GPRS in India, Tata Docomo is doing its bit to change billing
practices.
The joint venture between Tata Teleservices and Japanese telecom
major NTT Docomo officially began rollouts with a plan to invest $2 billion for its
pan-India GSM services.
Customer Satisfaction
The 21 century belongs to the service sector. The customer of yester
year was a silent person who uncomplainingly purchased the goods from the
market place. There is a new customer emerging today. Customer satisfaction
can be defined as, customer satisfaction is the feeling derived by the consumer
when he compares the actual performance of the product’s with the
performance that he expects of it.
The measurement of the customer satisfaction typically begging when
a company realizes that their customer s is the people, who provide the
revenues that, hopeful, will cover expenses. Most companies start by
establishing a customer satisfaction baseline. Then they target year by year
improvement.
Understanding customer requirement and delivering superior quality
goods and services to achieve composer satisfaction lead to the retention and
growth of the customer.
General Idea about the satisfied customer:
Satisfaction is a persona’s feeling of the pleasure or disappointment. It is
resulting from comparing a product’s perceived performance with his or her
expectations from it. Satisfaction is more of an emotional concept. Today
organization are aiming at high satisfaction rather than at customer delight
because customers who are
just satisfied still find it easy to switch over when a batter offers comes along.
Those who are highly satisfied are much less ready to switch over. High
satisfaction or delight creates an emotional bound with the brand and customer
starts looking at an offering emotionally and just rationally.
The aim of marketing is to meet and satisfy target customers needs and
wants but knowing customer is never simple. Customer may state their needs
and wants but act otherwise. They may not be in touch with their deeper
motivations. They may respond to influential to change their mind at the last
minute. Some of today’s most successful companies are raising expectation and
delivering performances to match. These companies are aiming at TCS- Total
customer Satisfaction.
Increasing competition (whether for-profit or nonprofit) is forcing
businesses to pay much more attention to satisfying customers. In a competitive
marketplace where businesses compete for customers, customer satisfaction is
seen as a key differentiator and increasingly has become a key element of
business strategy.
Customer Loyalty:
These four factors will greatly affect your ability to build a loyal customer
base:
Products that are highly differentiated from those of the competition.
Higher end products where price is not the primary buying factor.
Products with a high service component.
Multiple products for the same customer.
Loyal Customers and Loyal Workforces
Building customer loyalty will be a lot easier if you have a loyal workforce
not at all a given these days. It is especially important to retain those employees
who interact with customers such as sales people, technical support, and
customer-service people. Many companies give a lot of attention to retaining
sales people but little to support people.
The increasing trend today is to send customer service and technical
support calls into queue for the next available person. This builds no personal
loyalty and probably less loyalty for the firm. Before going this route, be sure this
is what your customers prefer.
Instant Feedback:
Recently, many organizations have implemented feedback loops that allow
them to capture feedback at the point of experience. For example, National
Express, one of the UK's leading travel companies invites passengers to send text
messages whilst riding the bus. This has been shown to be useful as it allows
companies to improve their customer service before the customer defects, thus
making it far more likely that the customer will return next time.
Listen to your customers:
Is there anything more exasperating than telling someone what you want or
what your problem is and then discovering that that person hasn’t been paying
attention and needs to have it explained again? From a customer’s point of view, I
doubt it. Can the sales pitches and the product babble. Let the customer talk and
show them that you are listening by making the appropriate responses, such as
suggesting how to solve the problem.
MARKETING STRATEGY
Tata Docomo appears to be banking heavily on its tariff plans the
company is offering a 1 second pulse instead of the usual 1 minute pulse that
other telecom operators are offering. This means that consumers are charged on
a per second basis, instead of a per minute basis, and end up saving money on
unused seconds. A nifty little application “How much can you really save” on
Docomo’s website explains how this works. Rs. 0.01/second is a marked change
from the Re 1/min and Rs. 0.49/min charges that usually applies.
MARKETING MIX
4P’S OF MARKETING MIX:
Product
Price
Place
Promotion.
PRODUCT:
TATA DOCOMO having good range of services. Tata Docomo provides both
postpaid and prepaid services. Tata Docomo having good quality network which
provides clarity in voice.
PRICE:
It having attractive tariff plan: TATA DOCOMO having 1paisa /sec it is
applicable for both prepaid and postpaid.
PLACE:
It is having good range of channels of distribution: As Tata already exist
in this field of telecommunications as Tata Indicom. It has wide range of channels
of distribution to sell TATA DOCOMO services.
PROMOTION:
Advertising: TATA DOCOMO following different style of advertising pattern
in TV ‘and newspapers. Due to that reason it was reaching public very fast.
TATA DOCOMO PRICING STRATEGY
Tata Docomo appears to be banking heavily on its tariff plans the
company offers a 1 second pulse instead of the usual 1 minute pulse that other
telecom operators were offering. This means that consumers are charged on a
per second basis, instead of a per minute basis, and end up saving money on
unused seconds. A fifty little application “How much can you really save” on
Docomo’s website explains how this works. Rs. 0.01/second is a marked change
from the Re 1/min and Rs. 0.49/min charges that usually apply.
Now while this plan might sound unique, it isn’t that it hasn’t been tried
before back in 2004, Tata Indicom had launched 1 second pulse plans, which
going by their current plans, appears to have been shelved.
At present, Tata Docomo has launched voice portals, 24-hour music, cricket
commentary and voice chat, apart from offering free Missed Call Alerts and
Voice Mail. Interestingly, voice based services are also being priced with a per-
second-pulse: 24 hour music and voice chat are priced at Rs. 0.02/second. Caller
Tune search service ‘Genie’ is also being priced at Rs. 0.02/second. This is a
marked change, again, from the per minute pricing, and can offer consumers
cheaper options.
An initiative that has taken the service provider industry by storm
The pay per second model has really paid off well for the latest entrant
in the Indian GSM space, Tata-Docomo. The new pricing strategy from Tata-
Docomo has changed the rules of the GSM game, which is dominated by AirTel
and Vodafone. Tata-Docomo also launched its first mobile handset in September
2010.
Mobile pricing innovation – Tata Docomo now charges per website for Mobile
Browsing!
This is surely a first world over – Tata Docomo have gone ahead and
launched an innovative mobile Internet offering which allows users unlimited
usage of their favorite websites on mobile for a fixed cost.
Tata Docomo has been forefront in coming up with various attractive pricing
schemes, especially, in the pay-per-use paradigm. They were first to introduce
pay per second billing on calls, which now is followed by every mobile service
provider. They followed it with pay-per-minute and pay-per-call pricing plans as
well which has made them one of the fastest growing Mobile companies in India.
The new pay-per-website offering however, takes it to a complete
different level and unheard of pricing strategy. This is a very thoughtful strategy
and something which has potential to growth rapidly. Tata Docomo pricing
strategy.
Pay per site offer two combination:
Those only interested in single websites need to pay Rs 10 per site
Those with multiple site browsing needs can opt for a combo pack at just Rs 25
per month.
Customers have a bundle of options within various categories of social
networking sites (Facebook, Twitter, and Linked In, Orkut), mail options (Gmail,
Yahoo, Rediff) and chat messengers (GTalk, Yahoo! Messenger, Nimbuzz).
Having said this, there is also a caveat – If you thought it was valid for
unlimited use…it is not.
Tata Docomo pay per site plan categorizes each service under 2
different genres – Social Networking Site and Emailing & Instant Messaging. Each
site under this genre is priced at Rs. 10/- bundled with 200 MB free data usage
valid for 30 days, post which customers will be charged at 1p/kb. There are also
2 Combo options SNS Combo Pack and Emailing Combo Pack and each Combo
Pack is priced at Rs. 25/- bundled with 500 MB free data usage post which the
customers will be charged 1p/kb.
We have been quite impressed the way Tata Docomo have gone about
their innovative pricing models as well as marketing strategies.
“Per Character” SMS Pricing
On 8th September 2009, the GSM branch of the Indian carrier Tata
introduced a novel pricing strategy for text messaging. Under the brand “Diet-
SMS“, Tata-DOCOMO bills its customers “by-the-character”, rather than on a per
message basis.
It is a very attractive marketing scheme, since many wireless subscribers,
almost by habit, tend to pepper their text messages with abbreviations and
acronyms.
Under the new plan, Tata-Docomo charges “one paisa per character”.
For example, a text which reads “tnx” (for “thank-you”) is charged at 3paise
instead of the normal sms charge.
The Impact
Tata Docomo has gathered significant market share, owing to its pricing
strategies.
Existing mobile operators are matching the price and the clear winners are
the subscribers since all the competition is sending the prices downhill.
Tata Docomo pricing strategy.
ADVERTISING MEDIA CHANNELS
India Tata Docomo, the youngest among telecom players in India to
offer GSM, is Presently banking on its services to garner visibility and a share in
the telecom pie. The launch of Tata Docomo also announced the intention of the
brand to associate with the thought 'do'. Tata Docomo, for the first time in the
country, offered pay-per-second billing; though other telecom providers have
followed suit since. The company has carried out a few adverts that highlight the
brand's unique features and some other topical advertising during Ganesh
Chaturthi and Diwali. The latest from the GSM provider is the 'Friendship
Express' TVC. The ad opens inside train, where everyone is doing their own thing.
A couple of the travelers don't like the solemn mood and start humming the
Docomo tune. Slowly and steadily, others pitch in and soon most of the train is
singing along. The ad ends with the super, 'Why walk alone when we can dance
together'.Cutting through the clutter that the Indian telecom landscape finds
itself in with customers forced to jostle with confusing and complicated
products, services and tariff plans Tata DOCOMO is ‘Doing the New’ again, with
the launch of its new brand campaign, aptly titled ‘Keep It Simple’. Tata
DOCOMO’s unique Keep It Simple Campaign is in a form of a stand-up comedy
show with many episodes, which will be aired during the course of this IPL
season. It focuses largely on how Tata DOCOMO simplifies the telecom
experience, and hence the consumer’s life, by providing differentiated products
and services. Each individual advertisement starts by illustrating a complexity in
the category, and presents the Tata DOCOMO product and/or service as a means
of simplifying things. This campaign is simple, captures the various moods of
Ranbir depicting those of Tata DOCOMO
Advertisement strategy
Tata DOCOMO ropes in Ranbir Kapoor as brand ambassador
NEW DELHI: Tata Docomo, the GSM brand of Tata Teleservices (TTSL), today
appointed Bollywood star Ranbir Kapoor as its brand ambassador.
The company has inked a two-year contract with Kapoor and will roll out
various televisions, print and outdoor campaigns with the actor, starting with the
upcoming Indian Premier League (IPL) tournament.
"We think Tata Docomo is an inspirational brand and so is the charm
and personality of Ranbir Kapoor, so it is a great match. We will leverage him in
various campaigns to build the brand further," TTSL Head Corporate Marketing
Gurinder Singh Sandhu told PTI.
Tata DOCOMO will undertake various marketing initiatives with Ranbir
Kapoor, including television commercials, print campaigns, outdoors and retail
front displays, he added.
The company will introduce its new campaign during the IPL
tournament, which kicks off on April
According to media analysts, Tata Docomo is expected to spend in
excess of Rs 50 crore for the 360-degree campaign during the IPL season.
Other telecom operators like Bharti Airtel, Idea Cellular and Reliance
Communications have also appointed Bollywood stars as their brand
ambassadors.
While Airtel has worked with Shahrukh Khan, Saif Ali Khan and Kareena
Kapoor, Idea Cellular has Abhishek Bachchan as its ambassador. Reliance
Communications has worked with Hrithik Roshan.
Vodafone, on the other hand, has found success with its 'Zoozoos', the
egg shaped cartoon characters featured in its ad campaign.
Currently, Tata Docomo mobile services available in these following
circles:
Bihar & Jharkhand
Tamil Nadu
Orissa
Andhra Pradesh
Karnataka
Kerala
Kolkata
Maharashtra & Goa
Madhya Pradesh
Chhattisgarh
Haryana
Chennai
Eastern Uttar Pradesh
Western Uttar Pradesh
Punjab
Rajasthan ,Recently Launched Aand Rest of West Bengal, Recently
Launched.
PLANS
Tata DOCOMO Daily Plans.
When every day is different,
why have a fixed plan? A
brand new day calls for a
brand new plan. Choose from
Daily plans on local, STD,
Night calling, GPRS & Music
and make your own Daily
Plan.
Benefits:
Anytime purchase
Minimal cost
Ease of process
How to subscribe:
Dial *141# and choose from Daily plans on local, STD, Night calling, GPRS &
Music.
Product options:-
Daily Rental Packs (Rs.2)
All local at 1p/2sec
STD at 3p/4sec
Local Night On-net at 1p/10sec
Local On-net at 1p/6sec
USA/Canada & UK(F) at 3p/sec
Gulf at 11p/sec
All local & National SMS at 1p
Weekly Rental Packs (Rs.10)
All local at 1p/2sec
STD at 3p/4sec
Local Night On-net at 1p/10sec
Local On-net at 1p/6sec
USA/Canada & UK(F) at 3p/sec
Gulf at 11p/sec
All local & National SMS at 1p
Talk More
30 local minutes @ Rs.5 on
Tata DOCOMO Network.
30 local minutes @ Rs.12 across
Networks.
30 local/National minutes @ Rs.14
10 Local/National minutes @ Rs.5
Night Talk
Now converse through the night.
60 Free Local Night minutes on
Tata DOCOMO Network.
30 Free local On-net minutes @ Rs.3
20 Free local minutes @ Rs.5
a. GPRS
10MB Free Browsing @ Rs.5 only. World Calling
10 minutes to USA/Canada @ Rs.20
5 minutes to USA/Canada @ Rs.10
a. Entertainment
15 minutes FREE music @ Rs.5
a. Cricket
Cricket Alerts @ Rs.5/day
Terms and Conditions:
Daily implies active till 12 midnight on the same day of pack activation. Ex: A
subscriber activated the pack on 25th Feb'10 then the pack with daily validity will
expire at midnight of 25th Feburary'10#.
In case on night packs the expiry of the pack will be 7 am of the next day of
activation of the pack. Ex: A subscriber activated the night pack on 25 th Feb'10
then the pack with daily validity will expire at 7 am of 26th Feburary'10#.
The pack will get activated maximum within 2 hrs of request receipt on the
system. You will get an automated confirmation SMS once the same is
configured on our systems.
You can activate multiple packs in a day.
Competitor Analysis
The competition has intensified the past few months with new players
and schemes coming in. There has never been a better time for the customer to
get a mobile phone connection
There are at least six if not more operators to choose from in ever circle.
In June 09, TATA DOCOMO broke the old system of tariff by introducing per
second billing system. As soon as they did this, the other followed suit with price
cuts everywhere. Suddenly the idea of calls being free was not so outrageous.
The prices were reduced to such an extent that the viability of the business was
in questions. The competitive environment of TATA DOCOMO can be looked at
from the following perspectives
Market share
The government issued fresh licenses in 2008.As a result of this the
market gets crowded though incumbents‟ still hold larger market shares are
shown above. However a point to note is that the new players have lower entry
costs with very deep pockets. They also have no legacy issues like the older
players and hence are more adept to changes market situations. The cost of
infrastructure has reduced dramatically due to the market growth and DOCOMO
had an advantage here.
MARKET CAPITALISATION:
As profits margins are becoming thin, the market capitalization of listed
telecom companies has fallen. Though there have been some signs of recovery
Airtel vs Tata Docomo
The equal competitors are coming up with their new tariffs, plans, special packs
and their varying services to prove themselves to be much competitive and
trying to anchor them firmly in this mobile sector.
Currently the Tata Docomo came up with its services with an all new tariff
scheme of pay per second which has brought out a massive revolution in the
market.
On 30th Oct the leading mobile service provider Bharti Airtel launched their
much awaited “Pay per Second” tariff all throughout India. The tariff comparison
with Airtel and TATA Docomo is as follows,
Airtel with its inception on 2001 renders number of customers but their tariff,
call rates to different network makes confusion and remains unstable. But
Docomo’s 1p/sec throughout India makes consumers to keep track of their
account and controls expenses.
Airtel has kept different SMS charges even in their Pay Per Second plan with local
sms being charged at Re.1 and National sms at Rs.1.50, whereas Docomo
introduced SMS charges based on the number of characters. No recharges are
needed to opt for per second calling after one year.
Package activation of Airtel ranges from Rs.64 to Rs.99 and varies from circle to
circle. Docomo’s does not charge anything extra for activating the per second
pack since the tariff plan by default is on per second basis.
The Airtel tariff calculation is hard ranging from 1p/sec to 1.2p/sec , but 20%
higher to other operators whereas A2A calls are kept at 1p/sec and that to other
operators are charged at 1.2p/sec. But Tata Docomo is offering a limited period
offer of STD calls at 1p/sec.
But Airtel is older than Docomo so it has compact network links than Docomo ,
so this is the place where Docomo has to establish itself.
Meanwhile it is found that Docomo with both GSM and CDMA network
added over ‘4 million’ subscribers in September, beating market leader Bharti
Airtel yet again. Airtel had 2.5 million new users in September.
The battle has just begun as new operators are still to join the war. Do have
your say what you edict is going to be ?
SWOT ANALYSIS
STRENGTH
WEAKNESS
OPPORTUNITIES
THREATS
STRENGTHS:
First to introduce seconds’ tariff plan (seconds pulse)
Good brand image of Tata services
Having large variety of plans
Plans are affordable by any common person.
WEAKNESS:
Signal strength.
Postpaid connections are not available as of now.
Customer services are not satisfactory.
Concentrating only on rural areas.
OPPORTUNITIES:
Have a great opportunity to expand its services.
To introduce any new plans for internet users.
Introduce 3G compatible services.
To introduce new combined plans like, SMS, Internet, Calling integrated
offers.
THREATS:
If signal strength is not increased it may lead to change in the network service
by the customers.
Tata has to clarify whether this 1ps/sec will continue till its lifecycle.
Heavy competition from all other network providers.
INTERNAL ENVIRONMENTAL ANALYSIS OF TATA DOCOMO Brand Image of Tata and Docomo This is another important factor which proves as a major strong point for Tata Docomo. Tata DOCOMO is Tata Teleservices Limited's (TTSL) telecom service on the GSM platform-arising out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Both of these are Big brand names in their respective countries; viz. Tata in India and NTT Docomo in Japan. Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in the Japanese market, the company is clearly the preferred mobile phone service provider in Japan with a 50 per cent market share. Variety of plans on offer Tata Docomo focuses not only on the price but also makes sure that the variety of services offered is not compromised. There are a number of tariff plans for post pay customers as well as for prepay customers. WEAKNESSES OF TATA DOCOMOOne major weakness of this organization would be the lack of adequate infrastructure to service the subscribers that it may initially achieve owing to the low prices. The key issue would be network coverage, where the customers would prefer that a call go through, or not be disconnected, than save Rs. 0.5-Re.1 on a call. At the same time, since operators have so far been focused on the “land-grab”... MORALE OF EMPLOYEES IN AN ORGANISATIONGood MoraleMorale is a way of describing how people feel about their jobs, employers and companies, and those feelings are tied to the behaviors and attitudes that employees exhibit in the workplace. When employees have good morale, they feel committed to their employers, loyal to their jobs and motivated to be productive. They work harder, produce more, meet deadlines and give it their all.Low MoraleAccording to BNET, a website that offers business management advice, low morale takes a toll on employee performance and productivity. Employees become less motivated to work, less committed to their employers, exhibit an attitude of indifference and are absent more often. Companies pay the consequences of low morale, as less work gets done and time and money are wasted. Such characteristics may not always indicate low morale. Be sure that you don't misdiagnose employees as having low morale when they may just be having a bad day. Low morale is indicated by a pattern of these behaviors and attitudes over time.
MANAGEMENT SYSTEM OF TATA DOCOMOThe goal of the Management System and Organisation Optimisation is to introduce a new organisation and management system at the level of a selected company or a
group of companies (holding), as the case may be. The solution's standard subject matter is the conceptual preparation of the client's new organization and the implementation thereof, which is broken down into detailed organisational and functional patterns including job structure and category. Other steps include a preparation of the company's (holding) management rules, setting the basic functions, competencies, powers and responsibilities for individual management levels of a company (holding), and the preparation of a company's (holding) basic internal policies.ORGANISATIONAL CULTURE OF TATA DOCOMOIn TATA DOCOMO the organizational culture is the workplace environment formulated from the interaction of the employees in the workplace. Organizational culture is defined by all of the life experiences, strengths, weaknesses, education, upbringing, and so forth of the employees. While executive leaders play a large role in defining organizational culture by their actions and leadership, all employees contribute to the organizational culture.
EXTERNAL ENVIRONMENTAL ANALYSIS-Political-• Not favourable in terms of Recent spectrum allocation {2G-scam}.• Political lobbying is prevalent and many companies are taking advantage of it. It has become ubiquotious and creates lots of hassels for the firms.• Due to 2G Scam therre will be tighter control and auditing system.• Also UPA will bring some new changes as the social pressure is so high{Anna hazare movemenet}.Some new guidelines are coming up.• TATA may get truly benefitted by their inherent policy of no form of corruption.TATA Docomo should be ready for a patient game so that this political uncertainity gets settled.• ECONOMICAL-• Teledensity has improved from under 4% in March 2001 to 53% by the end of March 2010.Cellular telephony has emerged as the fastest moving business segment.• Due to high growth rate,hgher teledensity and sustainable domestic demand cellular telephony will surely reamain in the pink of health in India.• Unexplored rural market. Usage may be low but volume can be high.• Due to immense competition and lowest call rates in the world there are wafer thin margins as well.SOCIAL-• Youth population is increasing, adoption to new technologies has become daily routine, more litracy rate and more purchasing power of Domestic consumers makes this industry more than attractive.• Youth will control the economy within next 10 years and companies need to meet their ever changing and newest deamands.• Plans and tariffs need to be updated according to current demand and social habbits.• Devolopment of new apps and cool value added services are in demand.
TECHNOLOGY-• Tata Docomo is enjoying the distinct advantage of the backing up of NTT Docomo which proven innovative technology.It is first in Inidia to roll out 3G services in India resulted a growth of 30%-40% in VAS and also planning to bring in 3G enabled mobile phones at an affordable price.• It should try to capitalize the capabilities of Wimax technologies,a high speed data connection,which is supposed to have 12 million subscribers by 2012.• As 3G technologies has made in roads in India there is a growing emphasis on speed and coverage.
• ENVIRONMENTAL-• People have growing concern about the kind of damage cellular wave do to the brain and other parts of the body.• TATA Docomo should be the first to acknowledge the concern of the people by innovating ways that that can make the waves less harmfull.•• LEGAL-• Recently due to alligations and speculations surrounding the 2G Spectrum sale many service providers are in legal doldrums and have to face wrath of CBI and judiciary.• Whereas TATA Docomo has benefitted from his fare policies,it should par its back for this and march on with the progress it has seen with full vigour,
STP ANALYSIS-
Recommendations
The availability of recharge voucher should be made available when required by
the customers. As this give the good impression about the company.
The network coverage is another asset for the company’s image, which needs to
be preserved in future.
The overall image of the customer care services was found to be good but with
some loopholes related to delays in problem solving.
The company should be more prompt in handling the queries and problem of the
customer, which is vary essential for the prepaid card so as to retain the
customers with the company in future.
The customer care executives should be more efficient in handling the customer
and also more friendly and polite their conversation, while dealing with the
customer.
After sales service is required to be maintained properly, which is not up to the
mark
Call rates is affordable so it should be maintained at this level.
Many people are using mobile, but majority of them are not aware of the
technology they are using. Many tines it happens that a person doesn’t know
which technology satisfied his need. Hence awareness should be created among
them regarding advantages and differences in the technology.
