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“STUDY OF POSTPAID CONSUMERS’ BUYING BEHAVIOR”
&“COMPARATIVE STUDY OF BUSINESS MODELS OF
TELECOM & TRADITIONAL RETAIL OUTLETS”
SUMMER PROJECT BY
1
ACKNOWLEDGEMENT
This present piece of work owes its existence to many persons without whose help it
would not have been possible to complete the project. First of all I would like to thank my
project guides Mr Pallab Majumder and Mr. Manas Senapati of Vodafone- Essar Spacetel
Ltd for their valuable guidance, suggestions and constructive criticism.
I would specially like to thank Mr. Manas Senapati for his involvement and constant
guidance in the project. It was a pleasurable experience for me to work under his able
guidance in culling relevant information for preparation of this project and enriching my
overall knowledge on telecom industry.
I would like to thank all my respondents for sparing much of their valuable time for filling
the questionnaire and sharing their views, without which this project would have never
been completed.
I express my sincere gratitude to my faculty guides Prof. Jogendra Nayak and Prof.
Siddharth Rout for their valuable guidance and suggestions. I would also like to thank
Prof. Raj Dash for his valuable guidance.
Finally I would like to thank my friends and family members for the support during the
project.
Date:
Name of the candidate
Place:
2
INTRODUCTION
Orissa, a state in the eastern region of INDIA with a population of 36,706,920 out of which
more than 80% reside in the rural areas. It has posted steady growth figures for the last
decade and has attracted different industries on the basis of the resources available in the
state. The Indian telecom industry is not an exception from this. Recently there are six
different telecom operators providing the mobile services in the state. Out of them four are
GSM operators ( Airtel, BSNL, Smart GSM services, Aircel ) and two are CDMA operators
(RIM, TATA tele services). All the six operators provide the two basic type of mobile
services ie Prepaid & Postpaid. “Vodafone” is the next to enter into the Orissa telecom
market as the 7th player and 5th GSM player. The prepaid services can be availed by the
customers at various multi branded telecom outlets and different shops. The market of
Orissa has been a prepaid driven market. But with the improvement in the economic and
financial status of the people and the advent of different industries in to the state, the
demand for the postpaid services is growing. The telecom operators generate higher
ARPU ( Average Revenue Per User ) from the postpaid services as compared to the
prepaid services. The postpaid subscriber is considered to be a long term customer as
compared to the prepaid subscriber. So the telecom operators are also focusing to
increase the postpaid subscriber base. The telecom operators are setting up their
franchise outlets such as “ARC” ( Airtel Relationship Center ), “Reliance Web world”,
“True Value Hub” and “Cellcity” as a part of their postpaid strategy. These outlets are
called as “Telecom Customer Touch points” and they serve the purpose of taking a new
postpaid connection to bill deposit by the subscribers. “Vodafone” will also come up with
its retail outlets named “VS” ( Vodafone Store ) and “VMS” ( Vodafone Mini Store ) to
promote the postpaid connection. The project comprises both consumer and retail study.
The consumer study is concentrated upon the postpaid segment with the emphasis to
understand the postpaid consumers’ buying behavior and their usage patterns. The
consumer study will help to formulate the marketing strategy for “Vodafone” in the
postpaid segment in order to acquire new customer. The retail study is carried out to
understand the business models of the telecom retail outlets such as “ARC” & “MBO”
(Multi Branded Outlet) and the exclusive traditional retail outlets such as “The Titan
World” & “Tanishq”. The ROI models of these retail outlets are studied. From the retail
study a proposed model for the “VS” ( Vodafone Store ) and “VMS” ( Vodafone Mini Store )
is made with showing the profit potential. The retail study will be helpful for “Vodafone” to
formulate the strategy for the “VS” & “VMS”.
3
TABLE OF CONTENTS
CONTENTS PAGE NO
1- AIMS & OBJECTIVES 6
2- RESEARCH METHODOLOGY 7
3- BACKGROUND 8
4- POST PAID CONSUMER STUDY
(i) Demographics 16
(ii) Brand recall 18
(iii) Tariff plans availed 19
(iv) Popular plans 20
(v) Usage patterns 21
(vi) Categorization of the plans 27
(vii) Parameters for choosing postpaid 31
(viii) Importance of offers 33
(ix) Parameters for switching operator 34
5- RETAIL STUDY
(i) Foot falls to sales ratio in telecom retail 36
(ii) Footfalls to sales ratio in traditional retail 37
(iii) Customer behavior in the retail outlets 39
(iv) Features for low range handsets 40
(v) Intention of people visiting retail outlets 41
(vi) Parameters for buying in a retail outlet 43
(vii) Parameters for retailers to promote telecom operator 45
6- COMPETITORS’ SWOT 46
7- BUSINESS MODEL OF TELECOM CUSTOMER TOUCH POINT 51
8- BUSINESS MODEL OF MBO 53
9- BUSINESS MODEL OF WATCH SHOP 56
4
10- BUSINESS MODEL OF GOLD SHOP 58
11- CONCLUSION
(I) Consumer study 61
(ii) Retail study 62
12- ANNEXTURES
(i) Consumer questionnaire 64
(ii) retail questionnaire 67
5
AIMS & OBJECTIVES
AIM OF THE STUDY :-
1- To study the postpaid consumers’ buying behavior.
2- A comparative study of the business models of the telecom
retail outlets and the exclusive traditional retail outlets.
OBJECTIVES OF THE STUDY :-
( A ) CONSUMER STUDY:
1- To understand the importance of different parameters for choosing a
postpaid connection.
2- To find out the usage patterns of the postpaid consumers.
3- To find out the importance of different offers provided by the telecom
operators.
4- To find out the important parameters for a customer for switching to a
new operator.
( B ) RETAIL STUDY:
1- To understand the business models of the telecom retail outlets and
the exclusive traditional retail outlets.
2- To find out the footfalls to sales conversion ratio in both telecom and
exclusive traditional retail outlets.
3- To find out the importance of the parameters for the dealer/franchisee
to promote the telecom operator’s products & services.
6
RESEARCH METHODOLOGY
SAMPLE SIZE:-1- CONSUMER STUDY= 200, Area covered- Cuttack & Bhubaneswar
2- RETAIL STUDY: ( i ) Telecom retail outlets = 50
( ii ) ExclusiveTraditional retail outlets = 25
Area covered : ( i ) Cuttack- Badambadi, Dolmundai, College square Buxi bazaar ( ii ) Bhubaneswar- Sahid nagar, Kharabel nagar, Bapuji nagar, Cuttack road
SAMPLING METHOD:-
1- CONSUMER STUDY: “Quota sampling” based on the approx ratio
of the postpaid subscriber base of different
operators.
BSNL= 120 AIRTEL= 42 RIM= 20 SMART= 18
2- RETAIL STUDY: “Random sampling”
( i ) Telecom retail: MBO (Multi Branded Outlet)= 40
Telecom customer touch points=10
( ii ) Exclusive traditional outlets: Gold shop= 10,
Apparel shop= 10, watch shop= 5
RESEARCH METHODOLOGY:- 1- PRIMARY STUDY: Data collection through questionnaires
2- SECONDARY STUDY: Collection of postpaid plans
3- OBSERVATIONAL STUDY : To find out the footfalls to sales ratio & to study people’s behavior in the outlets.
QUESTIONNAIRE DESIGN:-
Closed ended questionnaires are made for 1- Consumer 2- telecom retail
3- Traditional retail
TOOLS USED FOR ANALYSIS:-
1- MS- Excel 3- Pie charts, Bar graphs
7
2- SPSS- 10
8
INDIAN TELECOM INDUSTRY SCENARIO
The Indian telecom industry has posted significant growth for the last 5 years both in
terms of subscriber base and revenue. The following graph shows the growth in the
subscriber base of the mobile services in the last 5 years.
( GROWTH OF THE MOBILE SUBSCRIBER BASE )
The mobile services has the players in both the segments of GSM and CDMA technology.
The following pie chart shows the technology wise market share in the mobile services.
( TECHNOLOGY WISE MARKET SHARE )
9
The following table shows the performance indicators of the telecom services up to the
quarter end December 07.
10
The mobile industry in India is predominantly prepaid driven market. The following graph
shows the status of the different key indicators of the GSM services.
( KEY INDICATORS OF THE GSM SERVICES )
The CDMA services has mainly attracted the customer segments who want to avail mobile
services at lower cost. The following graph shows the status of the key indicators of the
CDMA services.
( KEY INDICATORS OF THE CDMA SERVICES )
11
The different types of calls made by a mobile subscriber can be of following types.
( i ) intra circle to mobile ( ii ) intracircle to fixed lines (iii ) inter circle to mobile
( iv ) intercircle to fixed lines.
The following graph shows the distribution of different traffics for the GSM services.
( GSM ORIGINATED TRAFFIC DISTRIBUTION BY TERMINATING NETWORK)
The following graph shows the traffic distribution pattern for the CDMA services.
12
The following graph shows the operator wise market share of the GSM service providers.
( OPERATOR WISE MARKET SHARE OF GSM SERVICE PROVIDERS )
The following graph shows the operator wise market share of the CDMA service providers.
( OPERATOR WISE MARKET SHARE OF CDMA SERVICE PROVIDERS )
13
ARPU (AVERAGE REVENUE PER USER) & MOU (MINUTES OF USAGE) :-
CIRCLE POSTPAID ARPU PREPAID ARPU BLENDED ARPU
Circle-A 618 208 249Circle-B 532 213 232Circle-C 569 244 269Metro 714 248 346All India 628 219 261
( ARPU PER MONTH ; FIGURES UPTO DEC-07 )
COMPOSITION OF REVENUE ( FIGURES UPTO DEC-07 )
ITEMS SHARE
Rental revenue 21.3%Revenue from call charges 56.1%Revenue from roaming 9.8%Revenue from SMS 4.6%Other revenues ( VAS, installation etc ) 8.2%
USAGE PATTERN (MOU) { FIGURES UPTO DEC-07 }
MOU/ subscriber 464minsIncoming MOU 243minsOutgoing MOU 221minsIncoming : Outgoing MOU 53:47Postpaid MOU (incoming : outgoing) 47:53Prepaid MOU (incoming : outgoing) 54:46Outgoing SMS / subscriber 28
14
15
DEMOGRAPHICS
AGE OF THE RESPONDENTS:-
17, 9%
79, 39%89, 44%
15, 8% 20-30YRS
30-40YRS
40-50YRS
>50YRS
OCCUPATION OF THE RESPONDENTS:-
ANNUAL INCOME OF THE RESPONDENTS:-
AGE FREQUENCY20-30yrs 1730-40yrs 7940-50yrs 89>50yrs 15TOTAL 200
OCCUPATION FREQUENCYBanking 99Sales & marketing 27Business 31 Health 25Education 11Technical 4Others 3
16
Occupation of the respondents
99
27
31
2511 4 3
Banking
Sales & marketing
Business
Health
Education
Technical
Others
TELECOM OPERATOR’S SERVICE RESPONDENTS AVAILING:-
AVERAGE MONTHLY EXPENDITURE BY THE RESPONDENTS ON MOBILE SERVICE:-
INCOME FREQUENCY2-3lakhs 733-4lakhs 1044-5lakhs 23TOTAL 200
OPERATOR FREQUENCYBSNL 120Airtel 42RIM 20
Smart 18TOTAL 200
17
Annual income of the respondents
73, 37%
104, 51%
23, 12%
2-3lks
3-4lks
4-5lks
Operator's service used by the respondents
120, 60%42, 21%
20, 10%18, 9%
BSNL
Airtel
RIM
Smart
EXPENDITURE FREQUENCY PERCENTAGE450-600/- 1 0.5%600-750/- 28 14%
750-1000/- 85 42.5%>1000/- 86 43%
BRAND RECALL BY THE RESPONDENTS:-
OPERATOR BRAND-1 BRAND-2 BRAND-3BSNL 48% 18.5% 31.5%Airtel 44% 39% 16.5%
Reliance 5.5% 40.5% 51.5%Hutch 1.5% 0.5% 0%
Vodafone 1% 0.5% 0%Idea 0% 1% 0.5%
18
Monthly expenditure on mobile
1, 1% 28, 14%
85, 42%
86, 43%450-600
600-750
750-1000
>1000
0%
10%
20%
30%
40%
50%
60%
Brand-1 Brand-2 Brand-3
BSNL
Airtel
Reliance
Hutch
Vodafone
Idea
SOURCE OF INFORMATION OF THE POSTPAID CONNECTION:-
0
10
20
30
40
50
60
70
BSNL Airtel Smart RIM
Print media
TV
office/customertouch point
DIFFERENT TARIFF PLANS AVAILED BY THE RESPONDENTS :- During the survey 12 different postpaid plans of 4 different operators ( BSNL, Airtel, Smart,
RIM ) were found to be used by the respondents. The following table shows the number
and percentage of respondents availing the different postpaid plans.
PLANS FREQUENCY PERCENTAGE
OPERATOR PRINT MEDIA
TV TELECOM OFFICE/CUSTOMER TOUCH POINT
TOTAL
BSNL 57 0 63 120Airtel 9 11 22 42Smart 0 0 18 18RIM 0 0 20 20
19
1) BSNL-325 46 23%2) BSNL ONE INDIA 28 14%3) BSNL-525 25 12.5%4) BSNL-725 21 10.5%5) AIRTEL-299 16 8%6) AIRTEL-600FV 15 7.5%7) AIRTEL IND HOME 299 11 5.5%8) SMART-JOY-249 5 2.5%9) SMART-JOY-149 8 4%10) SMART-450 5 2.5%11) RIM-NJ-249 12 6%12) RIM-STD-375 8 4%
TOTAL 200 100%
DIFFERENT TARIFF PLANS ACROSS VARIOUS OCCUPATIONS :-
The following table represents the number of respondents from different occupations
availing each of the 12 postpaid plans.
PLANS Banking Sales &Marketing
Business Health Education Technical Others
BSNL-325 26 1 10 6 1 2 BSNL ONEIND 19 2 2 4 1 BSNL-525 21 1 2 1 BSNL-725 8 9 3 1 AIRTEL-299 5 3 2 3 1 2 AIRTEL-600FV 1 1 13 AIRTL IND HOME-299
4 2 2 2 1
SMART-JOY249 3 2SMART-JOY149 7 1 SMART- 450 5 RIM-NJ249 12 RIM-STD-375 7 1
TOTAL 99 27 31 25 11 4 3
MOST POPULAR PLANS ACROSS VARIOUS OCCUPATION :-
The following tables show the top- 3 or top- 2 plans across different occupations, based
on the percentage of respondents of corresponding occupation availing the postpaid plan.
1) BANKING:-
20
PLAN-1 BSNL-325 26%PLAN-2 BSNL-525 21%PLAN-3 BSNL ONE IND 19%
2) SALES & MARKETING:-
PLAN-1 RIM-NJ-249 44%PLAN-2 RIM-STD-375 26%PLAN-3 AIRTEL-299 11%
3) BUSINESS:-
PLAN-1 AIRTEL-600FV 42%PLAN-2 BSNL-725 29%
4) HEALTH:-
PLAN-1 BSNL-325 40%PLAN-2 BSNL ONE INDIA 16%PLAN-3 AIRTEL-299 12%
5) EDUCATION:-
PLAN-1 BSNL-325 54%PLAN-2 AIRTEL ONE INDIA 18%
USAGE PATTERNS
USAGE PATTERN OF THE RESPONDENTS AVAILING “BSNL-325” PLAN :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 50% 41% 7% 2%No of local calls 0% 0% 0% 15% 85%No of SMS 15% 35% 48% 2% 0%
21
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
No of STDcalls
No of localcalls
No of SMS
Least important
Not much important
Moderately important
Very important
Extremely important
USAGE PATTERN OF THE RESPONDENTS AVAILING “BSNL ONE INDIA” PLAN :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 0% 4% 28% 68%No of local calls 0% 0% 0% 0% 100%No of SMS 11% 25% 54% 10% 0%
0%10%
20%30%
40%50%60%
70%80%
90%100%
No of STDcalls
No of localcalls
No of SMS
Least important
Not much important
Moderately important
Very important
Extremely important
USAGE PATERN OF THE RESPONDENTS AVAILING “BSNL-525” PLAN :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 12% 56% 16% 16%No of local calls 0% 0% 0% 4% 96%No of SMS 12% 36% 52% 0% 0%
22
0%10%
20%30%
40%50%60%
70%80%
90%100%
No of STDcalls
No of localcalls
No of SMS
Least important
Not much important
Moderately important
Very important
Extremely important
USAGE PATTERN OF THE RESPONDENTS AVAILING “BSNL-725” PLAN :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 5% 28% 24% 43%No of local calls 0% 0% 0% 0% 100%No of SMS 14% 33% 33% 20% 0%
0%10%
20%30%
40%50%60%
70%80%
90%100%
No of STDcalls
No of localcalls
No of SMS
Least important
Not much important
Moderately important
Very important
Extremely important
USAGE PATTERN OF THE RESPONDENTS AVAILING “AIRTEL-299” PLAN :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 13% 50% 31% 6%No of local calls 0% 0% 0% 25% 75%No of SMS 6% 31% 44% 19% 0%
23
0%
10%
20%
30%
40%
50%
60%
70%
80%
No of STDcalls
No of localcalls
No of SMS
Least important
Not much important
Moderately important
Very important
Extremely important
USAGE PATTERN OF THE RESPONDENTS AVAILING “AIRTEL-600FV” PLAN :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 0% 33% 14% 53%No of local calls 0% 0% 0% 0% 100%No of SMS 13% 20% 60% 7% 0%
0%10%
20%30%
40%50%60%
70%80%
90%100%
No of STDcalls
No of localcalls
No of SMS
Least important
Not much important
Moderately important
Very important
Extremely important
USAGE PATTERN OF THE RESPONDENTS AVAILING “AIRTEL INDIA HOME -299” :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 0% 0% 45% 55%No of local calls 0% 0% 10% 0% 90%No of SMS 18% 9% 18% 45% 10%
24
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
No of STDcalls
No of localcalls
No of SMS
Least important
Not much important
Moderately important
Very important
Extremely important
USAGE PATTERN OF THE RESPONDENTS AVAILING “SMART-JOY-249” PLAN :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 20% 20% 60% 0%No of local calls 0% 0% 0% 60% 40%No of SMS 20% 60% 20% 0% 0%
0%
10%
20%
30%
40%
50%
60%
No of STDcalls
No of localcalls
No of SMS
Least important
Not much important
Moderately important
Very important
Extremely important
USAGE PATTERN OF THE RESPONDENTS AVAILING “SMART-JOY-149” PLAN :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 0% 25% 37.5% 37.5%No of local calls 0% 0% 12.5% 0% 87.5%No of SMS 0% 50% 50% 0% 0%
25
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
No ofSTD calls
No oflocal calls
No ofSMS
Least important
Not muchimportant
Moderatelyimportant
Very important
Extremelyimportant
USAGE PATTERN OF THE RESPONDENTS AVAILING “SMART-450” PLAN :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 0% 100% 0% 0%No of local calls 0% 0% 0% 0% 100%No of SMS 0% 40% 60% 0% 0%
0%
10%20%30%
40%50%60%70%
80%90%
100%
No ofSTD calls
No oflocal calls
No ofSMS
Least important
Not muchimportant
Moderatelyimportant
Very important
Extremelyimportant
USAGE PATTERN OF THE RESPONDENTS AVAILING “RIM-NJ-249” PLAN :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 58% 25% 17% 0%No of local calls 0% 0% 0% 0% 100%No of SMS 16% 16% 58% 10% 0%
26
0%
10%20%30%
40%50%60%70%
80%90%
100%
No ofSTD calls
No oflocal calls
No ofSMS
Least important
Not muchimportant
Moderatelyimportant
Very important
Extremelyimportant
USAGE PATTERN OF THE RESPONDENTS AVAILING “RIM-STD-375” PLAN :-
LeastImportant
Not muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
No of STD calls 0% 0% 0% 25% 75%No of local calls 0% 0% 0% 0% 100%No of SMS 0% 0% 12% 88% 0%
0%
10%20%30%
40%50%60%70%
80%90%
100%
No ofSTD calls
No oflocal calls
No ofSMS
Least important
Not muchimportant
Moderatelyimportant
Very important
Extremelyimportant
INFERENCES DRAWN FROM THE USAGE PATTERNS OF THE DIFFERENT PLANS
The usage pattern includes the basic services availed by the respondents
( I ) Importance of the No of local calls made by the respondents
( ii ) Importance of the No of STD calls made by the respondents
(iii ) Importance of the No of SMS made by the respondents
27
The usage patterns for different plans described earlier, show that
( i) In all the plans the importance of the No. of local calls is on the higher side
ie very important to extremely important.
( ii) The importance for the No. of STD calls varies across the plans greatly from
Not much important to extremely important.
( iii) In all the plans the importance of No. of SMS is on the lower side ie least
important to moderately important.
CATEGORIZATION OF THE PLANS
The table given below shows the categorization of the above 12 plans on the
basis of the amount of the monthly rental. The plans are divided into three
categories such as 1- Low rental 2- Medium rental 3- high rental
The key features and the weaknesses of these plans are described below
LOW RENTAL PLANS
BSNL – ONE INDIA PLAN :-
( i ) Key features ( USP ) : - All the STD call @ 1/- per minute
- Lower charges on both local & national SMS
( ii ) Weakness : - No weakness was found in this plan as it specifically fits to
the usage pattern of high no of STD calls.
LOW RENTAL MEDIUM RENTAL HIGH RENTAL
1- BSNL one India (299)
2- Airtel India home-299
3- Airtel 299
4- Smart joy 249
5- RIM-NJ-249
1- BSNL plan-325
2- RIM-STD-375
3- Smart- plan 450
4- BSNL plan-525
1- Airtel- 600FV
2- BSNL plan- 725
28
AIRTEL – INDIA HOME – 299 :-
( i ) Key features ( USP ) : - All calls @ 1/- per minute
( ii ) Weakness : - Higher charges on local calls
- Higher charges on local SMS
AIRTEL- 299 :-
( i ) Key features ( USP ) : - Free usage of 100/- for local calls
- Lower charges (0.3) on local calls to the mobile on
Same network
RIM - NJ – 249 :-
( i ) Key features ( USP ) : - Free usage of 249/- for the local calls
- Free usage of 75/- of local SMS
- Cheaper local call charges
( ii ) Weakness : - Higher charges on STD calls
- Higher charges on national SMS
- CDMA handsets ( though it has very low local call charges,
many people don’t prefer the CDMA service )
SMART JOY- 249:-
( i ) Key features ( USP ) : - Low charges (0.19) on the local calls to the mobiles
on the same network
- All STD calls are @ 1/- per minute
MEDIUM RENTAL PLANS
BSNL- PLAN -325 :-
( i ) Key features ( USP ) : - Free usage of 125/- for the local calls
- Lowest pulse rate of 15 sec
( ii ) Weakness : - Comparatively higher charges on local calls
- Most of the users don’t understand the concept of pulse rate
29
as a result the benefits of low pulse rate is not perceived by
the users.
RIM – MY STD – 375 :-
( i ) Key features ( USP ) : - Free usage of 375/- for both local & STD calls
- Lower charges on local calls
( ii ) Weaknesses : - Comparatively higher charges on STD calls in comparison
to the one-India plans of BSNL & Airtel, which are meant
for heavy STD callers.
- Higher charges on local SMS
- Very high charges on national SMS
BSNL – PLAN – 525 :-
( i ) Key features ( USP ) : - Free usage of 300/- for the local calls
- Lowest pulse rate @ 15sec
- All STD call charges @ 1/- per minute
( ii ) Weakness : - Higher monthly rental
SMART – PLAN – 450 :-
( i ) Key features ( USP ) : - Free local calls to the mobile phones on the same
network
( ii ) Weakness : - Higher local call charges to the fixed lines
- Higher monthly rental in comparison to other two plans
HIGH RENTAL PLANS
BSNL – PLAN – 725 :-
( i ) Key features ( USP ) : - Free local calls on the same network
- Free local SMS on the same network
- Very low STD call charges on the same network
- Lower charges on national SMS
30
( ii ) Weakness : - Very high monthly rental
AIRTEL – 600 – FV :-
( i ) Key features ( USP ) : - Free usage of 600/- for local calls
- Cheaper local call tariffs to the mobile on same
network
- Lower charges on local SMS
( ii ) Weakness : - High charges(1/-) on the local calls to the fixed lines
- Higher charges on national SMS(1/-) in comparison to
BSNL-725
IMPORTANCE OF DIFFERENT PARAMETERS FOR CHOOSING POSTPAID CONNECTION
PARAMETERS :-
( i ) Tariffs ( vi ) Roaming charges
( ii ) No of STD calls you make ( vii ) Network coverage & connectivity
( iii ) No of local calls you make ( viii ) Customer service
31
( iv) No of SMS you make ( ix ) Easy availability of the connection
( v ) Usage of VAS ( x ) Ease of bill deposit
The following table shows the percentage of the respondents giving weight age
for the above parameters.
PARAMETERS
Least
important
Not much
important
Moderate
important
Very
important
Extremely
important
Tariffs 0% 0% 0% 6.5% 93.5%
No of STD calls 0% 18.5% 32% 21% 28.5%
No of local calls 0% 0% 1% 7.5% 91.5%
No of SMS 12% 29.5% 45.5% 12.5% 0.5%
Usage of VAS 7.5% 39.5% 49.5% 3.5% 0%
Roaming 5% 23% 34% 27.5% 10.5%
Network coverage 0% 0% 0% 10.5% 89.5%
Customer service 0% 1% 19.5% 41% 38.5%
Easy availability connection 0.5% 0% 19% 51% 29.5%
Ease of bill deposit 0% 0% 10% 67.5% 22.5%
The above table is represented in the next two Bar- graphs
The first graph shows the weight-age for the first 5 parameters mentioned above
32
0%10%20%30%40%50%60%70%80%90%
100%
weightage
Tariff STDcalls
Localcalls
SMS VAS
parameters
Least important
Not much imp
moderately imp
very important
extremely imp
The second graph shows the weight-age for the next 5 parameters mentioned
above
0%10%20%30%40%50%60%70%80%90%
weightage
Roamingcharges
Network Customerservice
EasyAvailability
Easy billdeposit
parameters
Least important
Not much imp
moderately imp
very important
extremely imp
IMPORTANCE OF VARIOUS OFFERS PROVIDED BY THE OPERATORS
PARAMETERS:-
33
( i ) Less security deposit ( iv ) Less charges on VAS
( ii ) Less tariffs ( v ) SMS packs
( iii ) Free calls
The following table shows the percentage of the respondents giving weightage to
the above mentioned parameters.
PARAMETERSLeast
valuableNot muchvaluable
Moderately valuable
Very valuable
Extremely valuable
Less security deposit 2.5% 21.5% 35% 38.5% 2.5%Less tariffs 0% 0% 0% 7.5% 92.5%Free calls 0% 1% 2.5% 32% 64.5%Less charges on VAS 9% 32.5% 56% 2% 0.5%SMS packs 9% 32.5% 56% 2% 0.5%
The graph below represents the above table
0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%
100.00%
weightage
Lesssecuritydeposit
Less tariffFree callsLess VAScharges
SMSpacks
Offers
Least valuable
Not much valuable
Moderately valuable
Very valuable
Extremely valuable
IMPORTANCE OF THE PARAMETERS FOR SWITCHING TO A NEW OPERATOR
PARAMETERS:- ( i ) Better tariffs ( iv ) Better VAS
34
( ii ) Better network ( v ) More entertainment facility
( iii ) Better customer service ( vi ) National presence
The following table shows the percentage of the respondents giving weightage to
the above mentioned parameters.
PARAMETERSLeast
importantNot muchimportant
Moderatelyimportant
Veryimportant
Extremelyimportant
Better tariffs 0% 1.5% 3% 17% 78.5%Better network 0% 1.5% 2.5% 12% 84%Better service 0% 3% 20.5% 31% 45.5%More entertainment facility 20.5% 57.5% 21% 1% 0%Better VAS 12% 39% 45.5% 3.5% 0%National presence 0.5% 20% 26.5% 37.5% 15.5%
The following graph represents the above table
0%10%
20%30%
40%50%
60%70%
80%90%
better tariffs better network bettercustomerservice
Entertainmentfacility
better VAS nationalpresence
least important
not much important
moderately important
very important
extremely important
The above graph shows that better network and better tariffs are the most
important parameters, the customers look in an operator to switch. These are
followed by better customer service, then national presence. The lowest
importance is given to better VAS and more entertainment facility.
35
OBSERVATION OF FOOTFALLS TO SALES RATIO IN TELECOM RETAIL
OUTLETS :-
36
PARAMETERS :
( i ) No of footfalls/hr on peak hours ( 6:00pm to 9:00pm )
( ii ) No of footfalls/hr on off-peak hours ( 12:00noon to 3:00pm )
( iii ) No of people making a purchase on peak hours ( 6:00pm to 9:00pm )
( iv ) No of people making a purchase on off-peak hours( 12:00noon to 4:00pm )
The purchase includes any of the following items
( i ) Handset
( ii ) Accessory
( iii ) GSK & RCV
( iv ) Postpaid connection & sim replacement ( ARC, Reliance Webworld )
PEAK HOUR OFF-PEAK HOUR
NAME OF THE OUTLET
NO OF
FOOTFALLS
PER HOUR
NO OF
PURCHASES
PER HOUR
RATIO NO OF
FOOTFALLS
PER HOUR
NO OF
PURCHASES
PER HOUR
RATIO
a) CHAIN STORES :
The Mobile store, CTC 12 5 42% 8 4 50%
The Mobile store, BBSR 10 4 40% 7 3 43%
M- Bazaar, CTC 20 7 35% 12 4 33%
M- Bazaar, BBSR 22 8 36% 15 6 40%
b) INDIVIDUAL MBO :
Electronics World, CTC 15 5 33% 8 3 37%
Life Style, BBSR 12 5 42% 6 3 50%
c) FRANCHISE OUTLETS
ARC, CTC 10 6 60% 8 5 62%
ARC, BBSR 8 5 62% 5 3 60%
Reliance Web-world, BBSR 10 5 50% 9 5 55%
Reliance Web-world, BBSR 6 3 50% 7 4 57%
The above table shows that, in the franchise outlets of the telecom operators such
as ARC & Reliance Web-world, the foot falls are less, but the sales conversion
percentage is higher. The reason for this is that the most of the customers come to
these outlets with pre-decided mindset to buy a specific product such as a new
postpaid or a prepaid connection, some persons come for the SIM replacement
process and some come for the easy recharge. In case of the SIM replacement and
Easy recharge the sales conversion is 100%.
37
In case of M-Bazaar the footfalls are highest, but the sales conversion percentage
is very low. The reason for this is, as this store is located in a shopping mall, the
people coming to the mall for shopping just visit the store to see the available
products and also for gathering information about some products.
In case of other MBOs ( Multi Brand Outlet ) “The Mobile store” has higher sales
conversion percentage. Because people coming over here feel that “The Mobile
store” is a bigger brand so the quality and reliability of the products will be higher
than any general outlet. So people prefer buying products of higher price ranges in
“The Mobile Store”.
OBSERVATION OF FOOTFALLS TO SALES CONVERSION RATIO IN
EXCLUSIVE TRADITIONLA RETAIL OUTLETS :-
The exclusive traditional retail outlets includes
( i ) Gold shops like “Tanishq”
( ii ) Watch Shop like “ The Titan World”
( iii ) Apparel shop like “Adidas”
PEAK HOURS OFF-PEAK HOURS
NAME OF THE OUTLET NO OF
FOOTFALLS
NO OF
PURCHASES
RATIO NO OF
FOOTFALLS
NO OF
PURCHASE
RATIO
The TITAN World, CTC 10 7 70% 6 4 66%
The TITAN World, BBSR 12 9 75% 9 6 66%
Tanishq, CTC 12 8 66% 9 5 55%
Tanishq, BBSR 14 10 71% 10 7 70%
Adidas, CTC 8 3 37% 6 3 50%
Adidas, BBSR 9 4 44% 6 2 33%
The sales conversion percentage in the gold shop like “Tanishq” is higher because
when people were asked in the shop it was found that they are brand loyal of the
shop. Those people who didn’t make purchase found the price to be higher.
The sales conversion percentage in “The TITAN World” is higher because people
find it to be the only branded watch show room in the city with better service.
38
The lower sales conversion percentage in the apparel shop like “Adidas” is due to
the higher price range of the products.
The above two tables show that the sales conversion percentage is higher in the
shops with greater brand image. The reason is that people associate the brand
image of the shop with the quality, originality, reliability of the products and they
also expect better customer service in these shops.
The mall associated shops have higher footfalls but lesser sales conversion
percentage as people coming for other shopping just visit the store either to look
at the products or to have information about some products.
OBSERVATION OF THE CUSTOMERS’ BEHAVIOR IN THE TELECOM
RETAIL OUTLETS :-
PARAMETERS:
39
( i ) The “Requests” made by the customers
( ii ) The “Enquiries” made by the customers
( iii ) The “Complains” made by the customers
MBO ARC RELIANCE
WEB WORLD
REQUESTS 1- Product demonstration2- Price negotiation3- Request for free accessories4- RCV & Easy recharge
1- To explain the postpaid plans2- To do the activation as soon as possible3- To get a good number of choice4- Deactivation of VAS5- Easy recharge 6- SIM replacement7- To collect documents from home
1- Product demonstration2- VAS deactivation3- Quick activation
ENQUIRIES 1- Price of the products2- Product features3- Product demerits4- Extent of availability of repair services5- About the products to be launched to the market 6- Comparison between Different products7- Tariffs of new connection 8- Offers provided by the telecom operators 9- Warranty / guaranty of the products
1- Suitability of postpaid plans according to the usage pattern 2- Tariffs of the postpaid plans3- Time needed for the SIM activation4- Documentation for new connection5- The bill amount6- Special offers by the telecom operator
1- Price of the hand sets2- Functions of the handsets3- Reliability of the hand sets4- Tariff plans5- Membership fee for broad- band surfing & games 6- Special offers/schemes
COMPLAINS 1- Technical problems in the hand sets2- Problems in the accessories3- Delay in SIM activation4- Delay in easy recharge5- Price to be higher in comparison to other shops
1- Fault in postpaid bill2- Bill not received3- SIM blocks4- Problems in GPRS5- Wrong hello-tunes got activated6- Installation problem of PCO
1- Technical problems in the handsets2- Problem in connectivity of Data cards & USB3- Fault in bill4- Different call charges as compared to the tariff plan5- Higher charges for internet & games
IMPORTANCE OF THE FEATURES, PEOPLE LOOK FOR LOW RANGE
HANDSETS
FEATURES :
( i ) Colour display ( v ) MP3
40
( ii ) Battery talk-time ( vi ) FM – Radio
( iii ) Battery standby time ( vii ) Inbuilt loudspeaker
( iv ) Polyphonic ring tones ( viii ) GPRS compatibility
The following table shows the weightage given by the respondents for the above
parameters.
Now a days the HBO ( Handset Bundle Offer ) are on high demand. These HBOs
are usually coming with the low range hand sets below Rs 5,000/- . For example
Airtel has the HBO with NOKIA-1200 @ Rs 1300/-, NOKIA-1208 @ Rs 1600/-, NOKIA-
1650 @ Rs 2000/-, NOKIA-2626 @ Rs 2200/-, NOKIA-2600 @ Rs 3200/- . These
handsets constitute around 30% to 40% of the total sales in a MBO ( Multi Brand
Outlet ).
Vodafone will also come with its HBOs called Vodafone magic box ( black & white
@ 1199/- and colour @ 1599/- ). The magic box has the above features shown in the
table and it also gives some added benefits such as free talk-time of 50/- , local
calling bonus card worth Rs 55/- , night calling bonus card worth RS 22/- , free
caller tune worth Rs 45/- and free Vodafone alerts worth Rs 30/- .
The basic and the added features will have good market share in the HBO
segment.
INTENTIONS OF PEOPLE VISITING TO A TELECOM RETAIL OUTLET
PARAMETERS:
( i ) Window shopping
FEATURES LEAST
IMPORTANT
AVERAGE
IMPORTANT
MOST
IMPORTANT
Colour display 20% 80%
Battery talk-time 100%
Battery standby time 100%
Polyphonic ring tones 36% 47% 17%
MP3 5% 95%
FM-radio 2% 98%
Inbuilt Loud speaker 23% 44% 33%
GPRS compatibility 85% 15%
41
( ii ) Information gathering about the products
( iii ) Checking of new arrivals
( iv ) Comparing different shops
( v ) Serious buying intention
The following table shows the weightage given by the respondents to the above
parameters.
The above table is represented in the following graph.
0%
10%
20%
30%
40%
50%
60%
70%
weightage
widowshopping
information
gathering
checknew
arrivals
compareshops
seriousbuying
intention
intentions
least likely
likely
most likely
Window shopping happens more in the MBOs ( Multi Branded Outlets ) as
compared to the franchise outlets of the telecom operators.
PARAMETERS
LEAST
LIKELY LIKELY
MOST
LIKELY
Window shopping 20% 30% 50%
Information gathering 50% 50%
Checking new arrivals 2% 54% 44%
Comparing the shops 5% 25% 70%
Serious buying intention 70% 15% 15%
42
In the MBOs people come for gathering information about the hand sets ,
accessories, GSK etc such as price, features, reliability of the products. In the
telecom operator’s franchise outlets people come to gather information about the
new postpaid connection, the services available etc.
People come to the MBOs to compare the prices and the discounts or additional
benefits along with the hand sets across various shops before buying.
Most of the people come to the franchise outlets of the telecom operators with
serious buying intention as they have pre-decided to use the products and
services of that telecom operator.
IMPORTANCE OF THE PARAMETERS FOR THE CUSTOMERS BEFORE
BUYING IN A TELECOM RETAIL OUTLET
PARAMETERS:
( i ) Brand image of the shop
43
( ii ) Good location of the shop
( iii ) Distance traveled to the shop
( iv ) Availability of products of different price ranges
( v ) Availability of products of multiple brands
( vi ) Customer handling
( vii ) Post-sales customer service
( viii ) Look of the shop
( ix ) Assortment style
( x ) Special offers / schemes provided by the shop
The following table shows the weight-age given by the respondents to the above
parameters.
PARAMETERS LEAST
IMPORTANT
AVERAGE
IMPORTANT
MOST
IMPORTANT
Brand image of the shop 8% 92%
Good location of the shop 6% 94%
Distance traveled to the shop 16% 56% 28%
Availability of products of different Price ranges 2% 98%
Availability of product of multiple brands 20% 30% 50%
Customer handling 100%
Post-sales customer service 2% 98%
Look of the shop 26% 74%
Assortment style 22% 78%
Special offers provided by the shop 32% 68%
The above table is represented in the following two graphs
GRAPH-1 shows the importance of the first five parameters
44
8%
92%
6%
94%
16%
56%
28%
2%
98%
20%30%
50%
00.10.20.30.40.50.60.70.80.9
1
weight-age
brandimage
goodlocation
distancetravelled
priceranges
multiplebrand
parameters
least important
average important
most important
GRAPH-2 shows the importance of the next five parameters in the table
100%
2%
98%
26%
74%
22%
78%
32%
68%
0
0.2
0.4
0.6
0.8
1
weightage
customerhandling
customerservice
look of theshop
assortmentstyle
specialoffers
parameters
least important
average important
most important
IMPORTANCE OF THE PARAMETERS FOR THE RETAILER TO PROMOTE
THE PRODUCTS OF THE TELECOM OPERATORS
PARAMETERS:
45
( i ) Brand image of the operator
( ii ) Customer demand for the operator’s products
( iii ) Profit margin for the retailer
( iv ) Effective distribution channel of the operator
( v ) Regular offers for the customers
( vi ) Special trade offers for the retailer
( vii ) Relationship with the sales people of the operator
The following table and the graph representing it show the weight-age given to the
above parameters by the respondents.
PARAMETERS LEAST
IMPORTANT
AVERAGE
IMPORTANT
MOST
IMPORTANT
Brand image of the operator 32% 36% 32%
Customer demand for the operator’s products 16% 84%
Profit margin for the retailer 12% 88%
Effective distribution channel of the operator 30% 70%
Regular offers for the customers 20% 72% 8%
Special trade offers for the retailer 42% 58%
Relationship with the operator’s sales people 20% 80%
0%10%20%30%40%50%60%70%80%90%
weightage
brandimage
customerdemand
profitmargin
distributionchannel
offers forcustomers
trade offers relationwith sales
people
parameters
least importnt
average important
most important
COMPETITORS’ SWOT ANALYSIS
SWOT “AIRTEL”
STRENGTHS WEAKNESSES
46
- Strong network coverage
- Immediate complain resolution
- Easiest bill payment system
- Very economical plan for the STD callers
- Quickest activation
- HBO with NOKIA
- Frequent visits of the sales people to retailers
- Very good relation ship of the sales people
with the retailers
- Quick CAF collection from the retailers
- Constant distributors
- Free demo sim to the dealers with 300/- free
Talk-time and 2yrs validity
- Higher charges on local calls
- Large no of promotional SMS
- Higher pulse rate( 60sec in all the plans )
- Problem in easy recharge
- Many of the ARC don’t deal with HBO
- Lack of promotional campaigns for ARC
OPPORTUNITIES
- Untapped rural areas
- Low tele- density of Orissa
- To grab the low profile customers with low
cost HBO
- Large student / youth mass
- High brand recalls by the people
- Satisfaction of the retailers
- Growing industries in Orissa
THREATS
- Entry of “Vodafone” in to the market
- Recent increased promotional activity of
BSNL such as 4.5% commission to the
retailers on RCV
SWOT “BSNL”
47
STRENGTHS
- Broad network spread
- Cheaper tariffs for STD calls & to fixed lines
- No frequent changes in the tariff plans
- No hidden parameters in the tariffs
- Lesser pulse rate in some plans ( plan-325
& plan-525)
- Plan-725 is one of the best plans for the
heavy users such as business community
- Accurate billing
- High margin ( 4.5% ) on RCV to retailers
- High return on sim activation
- Free sim to the distributors
WEAKNESSES
- Longer documentation & activation process
- Poor customer service
- Very low frequency of offers for customers
- Evening network congestion
- Bill deposit only in the telecom office
- Poor supply of products
- Lack of aggressive marketing strategy
- Lack of definite focus on youth mass
OPPORTUNITIES
- Very high brand recall by the people
- High demand amongst the GOVT employees
- Untapped rural areas
- large youth mass
- High brand reliability amongst subscribers
- Large student / youth mass
- Growing industries
- Entry into the CDMA segment
THREATS
- Aggressive marketing strategy of other
operators
- Customer dissatisfaction with the complain
resolution
- Entry of Vodafone
- Low demand among youth
SWOT “SMART”
48
STRENGTHS
- Cheaper tariffs
- Frequent offers for the customers
- High margin for the retailers on
life-time sim
WEAKNESSES
- Poor network coverage
- High evening congestion
- Delayed response to complains
- Poor billing accuracy
- Poor activation process
- Very frequent changes in the tariffs
- Very less visits of the sales people to the dealers
- Poor CAF collection
- Frequent changes in the distributors
- Lack of promotion for postpaid
OPPORTUNITIES
- Higher demand among youth or the
student mass
- Regain the faith of the retailers by
providing higher margin on life-time
GSK
- Untapped rural market
THREATS
- Very high dissatisfaction amongst subscribers
regarding network problem
- Some customer segments think the operator
cheating the people
- High level of dissatisfaction amongst the retailers
due to frequent policy changes
- Entry of “Vodafone”
SWOT “RIM”
49
STRENGTHS
- Lowest investment to use mobile phone
- Cheaper tariffs
- Frequent offers for the customers
WEAKNESSES
- Delayed response to complains
- Very frequent changes in the tariffs
- Poor billing accuracy
- The handsets don’t have sophisticated look
- Poor performance of the “classic” handsets
- Frequent changes in distributors
- Poor activation
- Poor CAF collection
- Less visit of the sales people to the retailer
OPPORTUNITIES
- Growing demand for the HBOs
- The rural market with the potential for
low range handsets
- Large youth / student mass
- Growing industries
THREATS
- HBO introduction in the GSM segment
- Growing demand for the new low cost
GSM handsets like Olympia, Fly etc.
- Declining faith of the customers
- Dissatisfaction amongst the retailers
- No preference of the retailers to sell the
products
- Entry of Vodafone magic box
- Entry of BSNL into the CDMA segment
50
SWOT “TTSL”
STRENGTHS
- Very low investment to avail mobile services.
WEAKNESSES
- 8- 9 sec advanced metering
- Poor performance of the handsets
- Poor network coverage
- Frequent changes in the distributors
- Poor product supply
- No visit of the sales people to the retailers
- No definite policy for retailers
OPPORTUNITIES
- Growing demand for the HBOs
- The rural market with the potential for
low range handsets
- Large youth / student mass
- Growing industries
THREATS
- Declining faith of the customers
- HBO introduction in the GSM segment
- Growing demand for the new low cost
GSM handsets like Olympia, Fly etc
- No preference of the retailers to sell
the products
- Entry of Vodafone magic box
- Entry of BSNL into the CDMA segment
51
52
EXISTING MODEL OF TELECOM CUSTOMER TOUCH POINT
MONTHLY FIGURES OF “ARC”, BAJRAKABATI CUTTACK
Approx commission from postpaid bill deposit = 80,000/-
53
COMPANY
CUSTOMERTOUCH POINT
POSTPAIDPREPAIDPCOHBO &
ACCESSORIESCUSTOMER
SERVICE
EXPENDITURES
CUSTOMERS
1- Franchise2- Branding3- Promotional support4- Training support & staffs5- Product supply6- Store maintenance
REVENUE
1- Purchase of products2- Remuneration of staffs3- House rent4- Electricity5- Telephone bill6- Store maintenance7- Miscellaneous
Approx commission from new postpaid connection = 37,500/-
Approx commission on customer retention = 30,000/-
Approx profit from new PCO connection= 1,17,000/-
Approx profit from SIM replacement= 50,000/-
Approx profit from new prepaid connection= 1,800/-
Approx profit from prepaid easy-recharge= 12,000/-
Approx profit from PCO easy-recharge= 6,000/- TOTAL GROSS PROFIT = 3,34,300/-
( - ) OTHER EXPENDITURES
Remuneration of staffs ( 22 nos ) = 1,00,000/-
House rent = 10,000/-
Electricity = 5,000/-
Telephone bill = 5,000/-
Miscellaneous = 10,000/-
TOTAL = 1,30,000/-
APPROX NET PROFIT ( MONTHLY ) = 2,04,300/-
APPROX ROI ( MONTHLY ) = 22.38%
54
HANDSETSDISTRIBUTORS
BUSINESS MODEL OF MBO (MULTI BRAND OUTLET)
MONTHLY FIGURES OF “THE ELECTRONICS WORLD”, CUTTACK
55
1- Hand sets2- Show case3- Staffs4- Promotional offers
1- Display boards2- Promotional offers
1- GSK & RCV2- CAF collection
Accessories
CUSTOMERS
EXPENDITURES
MBO
OPERATORS’ DISTRIBUTORS
ACCESSORIESDISTRIBUTORS
TELECOMOPRATORS
HANDSETS ACCESSORY DOWNLOADSRCVSPREPAID
1- Product purchase2- Remuneration of staffs3- House rent ( optional )4- Electricity5- Telephone bill6- Store maintenance7- Miscellaneous
REVENUES:-
Approx profit from handsets = 36,000/-
Approx profit from accessories = 24,000/-
Approx profit from RCVs = 10,000/-
Approx profit from activations = 14,000/-
Approx profit from down-loadings = 5,000/-
APPOX TOTAL GROSS PROFIT = 89,000/-
( - ) OTHER EXPENDITURES:-
House rent = 7,000/-
Electricity = 3,000/-
Telephone bill = 3,000/-
Remuneration of staff ( 1nos ) = 2,000/-
Store maintenance = 10,000/-
Miscellaneous = 5,000/-
TOTAL = 30,000/-
APPROX TOTAL NET PROFIT = 59,000/-
APPROX ROI ( MONTHLY ) = 24.08%
56
MONTHLY FIGURES OF “SMART AGENCY”, BBSR
REVENUES:-
Approx profit from handsets = 20,000/-
Approx profit from accessories = 18,000/-
Approx profit from RCVs = 7,500/-
Approx profit from activations = 10,000/-
APPROX TOTAL GROSS PROFIT = 55,500/-
( - ) OTHER EXPENDITURES:-
House rent = 6,000/-
Staffs (1) = 2,000/-
Electricity = 2,500/-
Telephone bill = 2,500/-
Store maintenance = 5,000/-
Miscellaneous = 2,000/-
TOTAL = 20,000/-
APPROX MONTHLY NET PROFIT = 35,500/-
APPROX MONTHLY ROI = 22.46%
57
MONTHLY FIGURES OF “THE TITAN WORLD”,CUTTACK
58
BUSINESS MODEL OF “THE TITAN WORLD”
COMPANY
C & F AGENCY
TITANWORLD
PRODUCTS
PRODUCTS
REVENUE
1- Franchise2- Brand name3- Promotional support4- Store design guidelines5- Special trade offers6- Product pricing
WATCHESSUN
GLASSES ACCESSORIESREPAIR
SERVICESAFTER SALES
SERVICE
EXPENDITURES
CUSTOMERS 1- Products purchase2- Repair machineries3- Staffs remuneration4- Store maintenance5- House rent6- Electricity7- Telephone bill8- Miscellaneous
REVENUES:-
Approx total sales = 17,00,000/-
Approx purchase in a lot = 3,00,000/-
Approx profit (20%) on a lot = 60,000/-
Approx gross profit in 5 lots = 3,00,000/-
APPROX TOTAL GROSS PROFIT = 3,00,000/-
( - ) OTHER EXPENDITURES
Remuneration of staffs = 50,000/-
House rent = 30,000/-
Store maintenance = 30,000/-
Electricity = 25,000/-
Telephone bill = 10,000/-
Miscellaneous = 15,000/-
TOTAL = 1,40,000/-
APPROX TOTAL NET PROFIT (MONTHLY) = 1,60,000/-
APPROX MONTHLY ROI = 36.36%
59
BUSINESS MODEL OF “TANISHQ”
MONTHLY FIGURES OF “TANISHQ”, BBSR
60
EXPENDITURES
GOLDJEWELLARIES
DIAMONDJEWELLARIES
CUSTOMERSERVICE
TANISHQ
COMPANY
C & F AGENCY
PRODUCTS
PRODUCTS
REVENUE
1- Franchise2- Brand name3- Promotional support4- Store design guidelines5- Special trade offers6- Product pricing
CUSTOMERS1- Products purchase2- Staffs remuneration3- Store maintenance4- House rent5- Electricity6- Telephone bill7- Miscellaneous
COMPANY
REVENUES:-
Approx total sales = 2,50,00,000/-
Approx purchase in a lot = 50,00,000/-
Approx profit on a lot (10%) = 5,00,000/-
Approx profit on 6 lots = 30,00,000/-
APPROX TOTAL GROSS PROFIT = 30,00,000/-
( - ) OTHER EXPENDITURES:-
House rent = 2,00,000/-
Remuneration of staffs = 70,000/-
Electricity = 40,000/-
Telephone bill = 15,000/-
Store maintenance & miscellaneous = 2,00,000/-
TOTAL = 5,25,000/-
TOTAL APPROX NET PROFIT (MONTHLY ) = 24,75,000/-
APPROX MONTHLY ROI = 44.8%
61
CONSUMER STUDY
Among the postpaid consumers the brand recall for “BSNL” was the highest
followed by “Airtel” and then “Reliance” as brand-1. As brand-2 the recall for
62
“Airtel” & “Reliance” is higher. As brand-3 “Reliance has the bigger pie than
others.
The usage pattern shows that in all the postpaid plans people give highest
importance to the “No of local calls they make”.
The plans with higher importance on “No of STD calls” are “BSNL one India”,
“Airtel India Home-299”, “BSNL plan-725”, “Airtel-600FV”, “Smart-joy 249” and
“RIM STD-375”.
Before choosing a postpaid connection the customers give highest importance to
the “Tariffs” & “Network coverage / connectivity, followed by “Ease of bill
deposit”, “Easy availability of connection” & “Customer service” respectively.
Customers rate “Reduction in tariffs” as the highest valuable offer provided by the
telecom operators, followed by “Free calls” ( free usage min/Rs, night packs ).
Other offers like “Less security deposit”, “less charges on VAS” & “SMS packs”
are being given lower to moderate importance.
While a customer thinks of switching to a new operator “Better network” & “Better
tariffs” are the two most important parameters which they look for in the new
operator. This is followed by “Better customer service” & “National presence” of
the operator.
RETAIL STUDY
The footfalls in the franchise outlets of the telecom operators such as “ARC” &
“Reliance Web-world” are low but the conversion to sales percentage is higher in
63
comparison to other MBOs. This is because the customers entering into the “ARC”
or “Web-world” have pre-decided mindset to take a new postpaid/prepaid
connection of the respective operator or a customer may be a subscriber of the
operator, coming fro other services such as sim replacement, easy recharge etc.
In the shopping mall aided telecom retail outlets like “M-Bazar” the footfalls are
higher in comparison to others but the sales conversion percentage is lower. This
is because people coming for shopping to the mall just visit the store either for
window shopping or for gathering some information about the products.
While buying a low range handset (<=3,000/-) people give high importance to the
features such as colour display, battery talk-time, battery standby time, MP3, FM-
Radio.
Before buying in a telecom retail, customers give very high importance to the
brand image of the shop, good location of the shop, availability of products of
different price ranges, customer handling, post sales customer service.
In order to promote the telecom operator’s products, the retailers(MBO) give
highest importance to the profit margin they get & the customer demand for the
operator’s products / services.
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ANNEXTURE-1
CONSUMER QUESTIONNAIRE
Age: Gender: M/FEducation:
65
Occupation:Annual income:
1) Which type of cellular service you are using? a) Prepaid b) postpaid
2) Name any three top telecom brands providing cellular services 1- 2- 3-
3) Which operator’s service you are using? a) BSNL b) Airtel c) Smart d) Aircel e) TATA indicom f) Reliance-infocomm
4) What features did make you choose the present telecom service over the other operator? a) Tariffs b) Family having the same operator connection c) Friends having the same operator connection d) Individual / personal choice
5) What was the source of information of the postpaid connection? a) Print media ( news paper, magazines ) b) TV c) Radio d) Hoardings e) If others specify……………….
6) What is your average monthly investment on mobile services? a) <300 b) 300- 450 c) 450-600 d) 600-750 e) 750-1000 f) >1000
7) Rate the following parameters on the 1-5 point scale according to the weightage you give while selecting a post paid connection.1- least important 2-not much important 3- moderately important4- very important 5- extremely important 1 2 3 4 5a) Tariffb) Easy availability of connectionc) No of STD calls you maked) No of local calls you makee) No of SMS you makef) Roaming chargesg) Network coverageh) Customer servicei) Value added servicesj) Ease of bill deposit
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k) Your status
8) How do you prefer depositing your telephone bill? a) post office b) Telecom office c) internet d) Telecom customer touch points
9) Rate the operators on the 1-5 point scale on the following parameters on the basis of your knowledge.1- very dissatisfactory 2- dissatisfactory 3- average 4- satisfactory5- very satisfactory BSNL Airtel Smart Indicom Aircel RIMa) Brand imageb) Reliability c) Tariffs (rate)d) Types of tariff planse) Network coverage/ connectivityf) Customer serviceg) Dispute/ Complain resolutionh) Easy availability of connectioni) Value added services j) Offers(free calls, less security deposit, call ratek) Ease of bill depositl) Simplicity(of tariff plans, offers)m) No of outlets/ distributorsn) Overall satisfaction level
10) Rate the following offers in 1-5 point scale, where 1-lowest 5- highest 1 2 3 4 5Less security depositLess tariffFree calls (night pack)Less charges on value added services ( news, downloads etc)Sms packsService bundled packs ( hand set with the connection )More validity periodMore talk time
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11) If u choose to switch from your present telecom service provider, rate the following basic and added features (on 1-5 point scale) you would like to have in an operator. 1- least important 2- not much important 3- average 4- very important5- extremely important 1 2 3 4 5a- Better tariffsb- Better networkc- Better service ( prompt response to complains) d- More entertainment facilitye- Better value added services ( internet, receiving e-mail )e- Personal experience f- National presence 12) Do you like promo sms? a) yes b) noIf yes which type of sms do you like? a) Informative b) Occasion specific c) Regarding the available services
13) Whether the store from which you bought the hand set promoted the postpaid connection? a) yes B) No
ANNEXTURE-2
TELECOM RETAIL QUESTIONNAIRE
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1) What is the average no of customers visiting on a weekday? Kindly tick against the appropriate numbers.
Time slots 9 am-12 12-3 pm 3-6 pm 6-9 pmNo. of customersvisiting to the shop
a) 0-25b) 25-50c) 50-75d) 75-100
a) 0-25b) 25-50c) 50-75d) 75-100
a) 0-25b) 25-50c) 50-75d) 75-100
a) 0-25b) 25-50c) 50-75d) 75-100
2) What is the average no. of customers visiting on a weekend? Kindly tick against the appropriate numbers.
Time slots 9 am-12 12-3 pm 3-6 pm 6-9 pmNo. of customersvisiting to the shop
a) 0-25b) 25-50c) 50-75d) 75-100
a) 0-25b) 25-50c) 50-75d) 75-100
a) 0-25b) 25-50c) 50-75d) 75-100
a) 0-25b) 25-50c) 50-75d) 75-100
3) What is the average no of purchases made on a weekday? a) 0-10 b) 10-20 c) 20-30 d) 30-40 e) 40-50 f) >50
4) What is the average no of purchases made on a weekend? a) 0-10 b) 10-20 c) 20-30 d) 30-40 e) 40-50 f) >50
5) How many people ask for handset bundled offer in a month? a) 0-25 b) 25-50 c) 50-75 d) 75-100 e) >100
6) Rank the best three selling low ranges of handsets. a) 1000-1500 b) 1500-2000 c) 2000-2500 d) 2500-3000 e) 3000-3500 f) 3500-4000 g) 4000-4500 h) 4500-5000
7) Kindly rate the features ( on 1-3 point scale ) those people look for in a handset in the range of 1000-3000. 1- least important 2-average 3- most important 1 2 3 4 5Colour displayBattery talk time Battery Standby timePolyphonic ring tonesMP3FM radioInbuilt loudspeakerGPRS compatibility
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8) While people visiting a shop rate their intentions on the 1-5 point scale where 1- least likely 2- likely 3- most likely 1 2 3 a) They come for window shoppingb) They come for gathering information about the products, planning to buy c) They come to check the new arrivalsd) They come to compare different shopse) They come with serious buying intention
9) Rate the following factors what customers think important before purchasing in a shop on the 1-3 point scale, where 1- least important 2- Average , 3- most important. 1 2 3 a) Brand image of the shopb) Good location of the shopc) Distance travelled to the shop d) Availability of good quality of productse) Availability of products of different price rangesf) Availability products of multiple brandg) Customer handling ( explaining to the customers)h) Post sales customer servicei) Look of the shop ( exterior & interior of the shop ) j) Assortment style ( way of displaying the products)l) Special offers like discount provided by the shop
10) While promoting the products of a telecom operator, rate the following parameters according to your importance on the 1-3 point scale, where 1- least important 2- Average 3- Most important 1 2 3 a) Brand image of the operator b) Customer demand for the operator’s productsc) Profit margin you getd) Commission provided to youe) Effective distribution channelf) Regular offers for customers ( life time, free calls, sms packs etc )g) Special trade offers for you ( ex: target achievement bonus )h) Relationship with the sales people
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11) Rate the different operators on the following parameters on 1-5 point scale, where 1- Very dissatisfactory 2- Dissatisfactory 3- Average 4- Satisfactory 5- Very satisfactory
BSNL Airtel Smart Indicom Aircel RIMa) Brand imageb) Reliabilityc) Availability of the products ( enough supply )d) Customer demand for the productse) Profit margin you getf) Commission they provideg) Effective distribution channel( gap between order & receive )h) special trade offers for you( eg- target achievement bonus) i) Relationship with the sales peoplej) Passing correct information about the products/ services
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