SYNOPSIS OF SM (2)

8/7/2019 SYNOPSIS OF SM (2)

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CONTENTS PAGE NO.

INTRODUCTION

COMPANY PROFILE

BSNL

AIRTEL

RESARCH METHODOLOGY

LITERATURE REVIEW

STUDY DETAILS

ANALYSIS & INTERPRETATION

FINDINGS, RECOMMENDATIONS & CONCLUSION

BIBLIOGRAPHY

ANNEXURE


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A COMPARATIVE STUDY ON THE

CUSTOMER PERCEPTION TOWARDSSERVICES OF BSNL & AIRTEL

SUBMITTED TO

PROF.(DR.)D.D.SWAIN

SUBJECT:-SERVICES MARKETINGPAPER CODE:-C 306

TERM-III

SUBMITTED BY GROUP-09

NAMES ROLL NO

SNEHLATA SHAH (10DM070) JOBIN B. GEORGE (10DM086)

SUMEET Kr. BHARDWAJ (10DM094)

SANJIB Kr. BEHERA (10DM096)

DEV RANJAN DIWAKAR (10DM112)

INSTITUTE OF MANAGEMENT & INFORMATION SCIENCE

BHUBANESWAR


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INTRODUCTION

INDIAN TELECOM INDUSTRY

The Telecom industry is one of the leading and fastest growing in the worldas communication plays a vital role in the world and especially in India. It acts as amajor catalyst for the economic growth. While the accent of growth is one the

value added service, such as e-mail, cellular phones etc in the developed countries.This sector a crucial role in spurring growth, especially industrial and service, inany economy. Multinational companies are investing in developing countriesbecause of huge latest demand. The industry has witnessed consistent growthduring the last year on the back of rollout of newer circles by operators, successfulauction of third-generation (3G) and broadband wireless access (BWA) spectrum,network rollout in semi-rural areas and increased focus on the value addedservices (VAS) market.

According to the Telecom Regulatory Authority of India (TRAI), the number oftelephone subscriber base in the country reached 742.12 million as on October 31,

2010, an increase of 2.61 per cent from 723.28 million in September 2010. Withthis the overall tele-density (telephones per 100 people) has touched 62.51. Thewireless subscriber base has increased to 706.69 million at the end of October2010 from 687.71 million in September 2010, registering a growth of 2.76 percent.

Meanwhile, Indian Global System of Mobile Communication (GSM) telecomoperators added 17.45 million new subscribers in November 2010, taking the all-India GSM cellular subscriber base to 526.18 million, according to the CellularOperators Association of India (COAI). The GSM subscriber base stood at 508.72

million at the end of October 2010.Value-Added Services (VAS) Market

Mobile value added services (VAS) include text or SMS, menu-based services,downloading of music or ring tones, mobile TV, videos and sophisticated m-commerce applications. As per a report, India Telecom 2010 released by KPMG


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in December 2010, currently, the VAS market is worth US$ 2.45 billion-US$ 2.67billion, which is around 10 per cent of the total revenue of the wireless industry.The share of VAS in wireless revenue is likely to increase to 12-13 per cent by2011, on the back of increased operator focus on VAS due to continuous fall invoice tariffs, increasing penetration of feature rich handsets, availability ofvernacular content and increased user adoption of VAS applications.

MAJOR INVESTMENTSThe booming domestic telecom market has been attracting huge amounts ofinvestment which is likely to accelerate with the entry of new players and launchof new services. According to the Department of Industrial Policy and Promotion(DIPP), the telecommunications sector which includes radio paging, mobileservices and basic telephone services attracted foreign direct investment (FDI)worth US$ 1,062 million during April-October 2010-11. The cumulative flow ofFDI in the sector during April 2000 and October 2010 is US$ 9,993 million.

As per an industry report the telecom industry witnessed merger and acquisition(M&A) deals worth US$ 16.60 billion during April-December 2010, whichrepresented 28.26 per cent of the total valuation of the deals across all the sectorsduring the period analyzed. There were 10 inbound, outbound and domestic M&Adeals in the telecom sector during the first nine months of the current fiscal. Thebiggest M&A deal in the sector was made by telecommunications service providerBharti Airtel through the acquisition of Zains African mobile services operationsin 15 countries. The deal involved a transaction of US$ 10.7 billion. In anotherdeal, Bharti Airtel acquired 100 per cent stake of Telecom Seychelles Ltd for US$62 million.

Other major M&A deals included the acquisition of 95 per cent stake in Infotel

Broadband for US$ 1,032.26 million by Reliance Industries and 26 per cent stakeof US-based mobile chipmaker Qualcomms Indian arm for US$ 57.72 million byIndia's Tulip Telecom and Global Holding. Further, India-based GTLInfrastructure Ltd has bought 17,500 telecom towers of Aircel Ltd. for US$1,702.95 million.

Going Global

In March 2010, Bharti Airtel bought the African operations of Kuwait-based ZainTelecom for US$ 10.7 billion, driving the Indian player into the league of top tentelecom players globally.

The Reserve Bank of India (RBI) has liberalised the investment norms for Indiantelecom companies by allowing them to invest in international submarine cableconsortia through the automatic route. In April 2010, RBI issued a notificationstating "As a measure of further liberalisation, it has now been decided... to allowIndian companies to participate in a consortium with other international operatorsto construct and maintain submarine cable systems on co-ownership basis under


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the automatic route." The notification further added, "Accordingly, banks mayallow remittances by Indian companies for overseas direct investment."

"The Indian mobile industry has now moved out of its hyper growth mode, but itwill continue to grow at double-digit rates for next three years as operators focuson rural parts of the country," said Madhusudan Gupta, senior research analyst atGartner. "Growth will also be triggered by increased adoption of value-added

services, which are relevant to both rural and urban markets."Mobile market penetration is projected to increase from 38.7 per cent in 2009 to63.5 per cent in 2013, according to Gartner.

The much-awaited mobile number portability was launched on November 25,2010 in Haryana and will be available to more than 700 million subscribers fromJanuary 20, 2011 across the country. As continued efforts of the Government toincrease competition in the market and to provide wider choice to customer,Mobile Number Portability will be an important step.

THE KEY PLAYERS IN THE TELECOM MARKET ININDIA

Cellular Service provider

Airtel Vodafone

BSNL Idea Reliance Tata Indicom Aircel

MTNL

BHARAT SANCHAR NIGAM LIMITED(BSNL)

Bharat Sanchar Nigam Ltd. formed in October, 2000, is

World's 7th largest Telecommunications Company providing comprehensive

range of telecom services in India: Wireline, CDMA mobile, GSM Mobile,


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Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN

Services etc. Presently it is one of the largest & leading public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing on

improving it, expanding the network, introducing new telecom services with ICT

applications in villages and wining customer's confidence. Today, it has about 46

million line basic telephone capacity, 8 million WLL capacity, 52 Million GSM

Capacity, more than 38302 fixed exchanges, 46565 BTS, 3895 Node B ( 3G BTS),

287 Satellite Stations, 614755 Rkm of OFC Cable, 50430 Rkm of Microwave

Network connecting 602 Districts, 7330 cities/towns and 5.6 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiativesto bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom

operator in the country to beat its reach with its wide network giving services in

every nook & corner of country and operates across India except Delhi &

Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern

region of the country. BSNL serves its customers with its wide bouquet of telecom

services.

BSNL is numero uno operator of India in all services in its license area. The

company offers wide ranging & most transparent tariff schemes.

BSNL cellular service, CellOne, has 55,140,282 2G cellular customers and 88,493

3G customers as on 30.11.2009. In basic services, BSNL is miles ahead of its


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rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share of the

subscriber base and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet

Customers who access Internet through various modes viz. Dial-up, Leased Line,

DIAS, Account Less Internet(CLI). BSNL has been adjudged as the NUMBER

ONE ISP in the country. BSNL has set up a world class multi-gigabit, multi-

protocol convergent IP infrastructure that provides convergent services like voice,

data and video through the same Backbone and Broadband Access Network. At

present there are 0.6 million Data One broadband customers.

The company has vast experience in Planning, Installation, network integration

and Maintenance of Switching & Transmission Networks and also has a world

class ISO 9000 certified Telecom Training Institute. Scaling new heights of

success, the present turnover of BSNL is more than Rs.351,820 million (US $ 8

billion) with net profit to the tune of Rs.99,390 million (US $ 2.26 billion) for last

financial year. The infrastructure asset on telephone alone is worth about

Rs.630,000million (US$ 14.37billion). The turnover, nationwide coverage, reach,

comprehensive range of telecom services and the desire to excel has made BSNLthe No. 1 Telecom Company of India.

BSNL has good brand awareness among the people. This could be attributed to its

long history in the market and continued support from the Government. In todays

competitive world, BSNL has to provide excellent services to attain a major

market share and keep their Customers satisfied in all aspects.

AIRTEL

Bharti Airtel, a leading mobile service provider in India is Bharti Enterprises'

flagship company. According to Forbes Global 2000 list, Bharti Airtel, India's

pioneering private telecommunication service provider is ranked#826. This


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integrated telecom service provider operates three strategic business units covering

23 telecommunication circles. These three strategic businesses are mobile

business, enterprise business, and Airtel telemedia business. Their mobile business

comprising fixed wireless and mobile services is spread over 23 telecom circles,

whereas their Airtel telemedia business provides telephone and broadband services

to clients in 94 cities. International and domestic long distance services and end to

end telecommunication solution for companies are included in Airtel enterprisebusiness.

Bharti Airtel was established as Bharti Tele-Ventures Limited in 1985. This

telecommunication company is a joint stock holding enterprise headquartered in

New Delhi. Bharti Airtel, commonly called 'Airtel' is among largest mobile service

operator with a subscriber base of nearly 75 million. Airtel has a submarine cable

landing station in Chennai connecting this South Indian city to Singapore.

Product and services: Services offered by Bharti Airtel can be classified into:

Mobile services Based on number of customers Bharti Airtel is largest mobile

service operator in India. This company offers mobile services based on GSM

technology. For convenience of its customers Bharti Airtel has both pre- paid and

post paid facilities.

Enterprise business Bharti Airtel provides integrated services comprising

mobile, telephone, broadband, data and connectivity services internationally as

well as nationally for small, medium and large scale enterprises. Its carrier service

provides network connectivity through optic fiber over a distance of more than35,000 km. Bharti Airtel is a member of South East Asia Middle East Western

Europe 4 consortiums which include 15 global telecommunication service

providers.

Airtel Telemedia Services This Company offers high speed broadband servicesthrough landlines in 94 cities.

Financials

Bharti Airtel till March 2008 had assets worth US $6.61 billion. During period

between April 2007 March 2008, it achieved sales amounting to US $6.61

billion and profits of US $0.94 billion.
http://www.economywatch.com/companies/forbes-list/india/bharti-airtel.htmlhttp://www.economywatch.com/companies/forbes-list/india/bharti-airtel.htmlhttp://www.economywatch.com/companies/forbes-list/india/bharti-airtel.htmlhttp://www.economywatch.com/companies/forbes-list/india/bharti-airtel.htmlhttp://www.economywatch.com/companies/forbes-list/india/bharti-airtel.htmlhttp://www.economywatch.com/companies/forbes-list/india/bharti-airtel.htmlhttp://www.economywatch.com/companies/forbes-list/india/bharti-airtel.htmlhttp://www.economywatch.com/companies/forbes-list/india/bharti-airtel.htmlhttp://www.economywatch.com/companies/forbes-list/india/bharti-airtel.htmlhttp://www.economywatch.com/companies/forbes-list/india/bharti-airtel.html


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Awards and recognition

Bharti Airtel was adjudged 'Best Carrier India' at 2008 Telecom Asia. It was

recognized as 'Best Cellular ServiceProvider' and 'Best Broadband Service

Provider' at V&D 100 awards for 2008. In 2007, Bharti Airtel won 'Business

Leadership Award' from NDTV Profit.

NEED OF THE STUDY

To understand the customer perception towards BSNL & AIRTEL

RESEARCH METHODOLOGY

A research was conducted in Institute of management & Information Science,Bhubaneswar to measure the level of perception of mobile users towards servicesof BSNL & AIRTEL.
http://www.economywatch.com/companies/forbes-list/india/bharti-airtel.htmlhttp://www.economywatch.com/companies/forbes-list/india/bharti-airtel.html


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Data Source: Primary & secondary data.

Primary Data: Collect information through the students of

IMIS

Secondary data: In data collection method we collected

secondary data from the following sources.

News paper

Magazine

Internet

Target Population: This research was conducted in the campus of

IMIS, Bhubaneswar, Odisha

Sampling method used: Convenience sampling, i.e. using the most

accessible people, who are willing to volunteer.

Sampling Size : 30

Type of Research: A descriptive research was followed for the study.

Research Approach :Questionnaire

The questionnaire contained the following types of questions: Closed-end questions

a) RATING SCALE (LIKERT)

LITERATURE REVIEW

Bhatt (2008), in his study titled A Study of Mobile Phone Usage among the PostGraduate Students analyzed that it is important for mobile carriers, serviceProviders, content developers, equipment manufacturers, as well as for parents andYoung people alike that the key characteristics of mobile technology are well


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Understood so that the risks associated with its potentially damaging or disruptiveAspects can be mitigated. This paper has tried to compare the usage difference byGender with respect to the difference manufacturing and service providercompanies.

Chinnadurai and Kalpana (2006) in their study titled Promotional Strategies of

Cellular Services: A Customer Perspective analyzed that the increasingcompetition and changing taste and preferences of the customers all over theworld are forcing companies to change their targeting strategies. The studyrevealed the customer attitude and their satisfaction towards the cellular services inCoimbatore city. It was found that advertisement play a dominant role ininfluencing the customers but most of the customers are of opinion thatpromotional strategies of cellular companies are more sales oriented rather thancustomer oriented.

Jha (2008), in his study analyzed that it is the youth which is the real growthdriver of the telecom industry in India. Considering this fact, the paper is anattempt to give a snapshot of how frequently young people use their mobilephones for several embodied functions of the cell phones. Data was collected froma sample of 208 mobile phone owners, aged between 20 and 29. The study shedslight on how gender, monthly voucher amount and years of owning mobile phonesinfluence the usage pattern of this device. Findings of the study would be helpfulfor the telecom service providers and handset manufacturers to formulate amarketing strategy for different market segments.

Kalavani (2006) in their study analyzed that majority of the respondents havegiven favourable opinion towards the services but some problems exist thatdeserve the attention of the service providers. They need to bridge the gap betweenthe services promised and services offered. The overall customers attitudetowardscell phone services is that they are satisfied with the existing services but still theywant more services to be provided.

Seth et al (2008), in their study titled Managing the Customer Perceived Service


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Quality for Cellular Mobile Telephone: an Empirical Investigation analyzed thatthere is relative importance of service quality attributes and showed thatresponsiveness is the most importance dimension followed by reliability, customerperceived network quality, assurance, convenience, empathy and tangibles. Thiswould enable the service providers to focus their resources in the areas ofimportance. The research resulted in the development of a reliable and validinstrument for assessing customer perceived service quality for cellular mobile

services.

STUDY DETAILS

CUSTOMER PERCEPTION: an overview


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In todays globalising economy competition is getting more and more fierce. That

means it becomes more difficult for products and services to differentiate

themselves from other offerings than ever before. Not only is the number of

competitive offerings rising due to globalisation of production, sourcing, logistics

and access to information. Many products and services face new competition from

substitutes and from completely new offerings or bundles from industry outsiders.

Since product differences are closed at an increasing speed and many companiestry to win the battle for customers by price reductions, products and services tend

to become commodities.

On the other hand, customer behaviour becomes more hybrids. On one hand,

customers are increasingly price sensitive searching forbargains at marketplaces

like eBay or buying their groceries at discount markets. On the other hand they

enjoy branded and luxury goods. One and the same person may plan a weekend

trip with a no-frills airline and a stay at a five-star-hotel.

In the result, customers have a wider choice of often less distinguishable productsand they are much better informed. For many offerings the balance of power shifts

towards the customer. Customers are widely aware of their greater power, which

raises their expectations on how companies should care for them.

Bringing it all together, it becomes ever more difficult to differentiate a product or

service by traditional categories like price, quality, functionality etc.

In this situation the development of a strong relationship between customers and a

company could likely prove to be a significant opportunity for competitive

advantage. This relationship is not longer based on features like price and qualityalone. Today it is more the perceived experience a customer makes in his various

interactions with a company (e.g. how fast, easy, efficient and reliable the process

is) that can make or break the relationship. Problems during a single transaction

can damage a so far favourable customer attitude.

Customer perceptions are influenced by a variety of factors. Besides the actual

outcome i.e. did the product or service deliver the expected function and did it

fulfil the customers need the whole process of consumption and all interactions

involved are of crucial importance. In todays globalised information driven

economy this can also comprise issues like

How other customers or influencing groups perceive the product or brand

The degree to which the customer feels the actual marketing campaign

addresses the most important issues
http://www.themanager.org/marketing/Customer_Perception.htmhttp://www.themanager.org/marketing/Customer_Perception.htmhttp://www.themanager.org/marketing/Customer_Perception.htmhttp://www.themanager.org/marketing/Customer_Perception.htm


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Responsiveness and service quality of any affiliates, e.g. distribution partners

Customer perceptions are dynamic. First of all, with the developing relationship

between customer and company, his perceptions of the company and its products

or services will change.

The more experience the customer accumulates, the more his perceptions will shift

from fact-based judgements to a more general meaning the whole relationshipgains for him. Over time, he puts a stronger focus on the consequence of the

product or service consumption.

Moreover, if the customers circumstances change, their needs and preferences

often change too. In the external environment, the offerings of competitors, with

which a customer compares a product or service will change, thus altering his

perception of the best offer around. Another point is that the public opinion

towards certain issues can change. This effect can reach from fashion trends to the

public expectation of good corporate citizenship. Shells intention to dump its

Brent Spar platform into the ocean significantly altered many customers

perception of which company was worth buying fuel from.

The more experience the customer accumulates, the more his perceptions will shift

from fact-based judgements to a more general meaning the whole relationship

gains for him. Over time, he puts a stronger focus on the consequence of the

product or service consumption.

OBJECTIVE OF YHE STUDY

To understand the awareness of Airtel & Bsnl products in the market

To analyze the customers perception towards Airtel & Bsnl

To know the satisfaction level of customers towards Airtel & Bsnl

products and services.

To understand the expectations and requirements of Customers

SCOPE OF THE STUDY

This research study is useful for understanding the customer perception

towards BSNL & AIRTEL

To find out different factors which influence customers in selecting anyservice provider

To identify the different parameters which influence the customers

perception


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The coming study, analysis, findings, and the research that we have

proposed would be of immense use for future research with similar studies

on this aspect

LIMITATIONS OF THE STUDY

At most attention would be taken to eliminate any kind of biasness & mis-

interpretation in the study to get optimum result. Even though the following

limitations could put certain degree of impact on the findings.

The study would be confined to Bhubaneswar,

Many students may not entertain our question.

Data collected about perception level may not represent the real picture as

the sample size cover only 30

There is always a time constraint

There are possibility of error in data collection because many of therespondents may not give the actual or appropriate answer


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ANALYSIS &

INTERPRETATION

INTERPRETATIONThis is the data collected from AIRTEL users, and after processing

represented in a pie chart format. From the diagram above it is clear that the

network, one of the five variables which we have taken to measure customer

perception contributed higher. So 22% of customer perception towardsAIRTEL is due to its high network coverage than the others.


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INTERPRETATIONData collected from BSNL users after processing is represented in this pie

chart format. The diagram above shows that the network and the schemes

which BSNL offered to customers contributed very high when compared to

other variables which we have taken to measure customer perception toward

BSNL. Both the variables constituted 23% each of customer perception.

COMPARISON BETWEEN AIRTEL AND BSNL

.

.

.

NETWORK

CUSTOM ER CARE

SCHEMES & TARIFF

PROMOTION

SATISFACTION


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VARIABLES AIRTEL BSNL

NETWORK 4.16 3.69

CUSTOMER CARE 3.31 2.27

SCHEMES &TARIFF 3.63 3.7

PROMOTIONS 3.71 3.37

SATISFACTION 3.8 3.13

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

NETW

ORK

CUSTOME

RCA

R

SCHE

MES&TAR

IF

PROM

OTIO

SATISFAC

TIO

AIRTEL

BSNL

FINDINGS

Network and Schemes & Tariff is also almost same or with little differences which

implies that both the companies are giving emphasis on network quality and also focusing to

provide flexible and comfortable facilities to suit customers requirement and expectation.


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Customer care and Promotion is also higher for AIRTEL than BSNL which indicates the

following :.

AIRTEL is more able to perform the services accurately and dependably , as promised

Employees of AIRTEL are more willing to help customers and provide prompt services

than that of BSNL.

AIRTEL is better in appearance of physical facilities, equipments, personal and

communication materials .

While measuring the satisfaction level of customers of both the service provider it was

observed that AIRTEL was able to meet the expectation and satisfy the need of the

consumers more when compared to BSNL.

RECOMMENDATION

It is for BSNL that it should improve upon its responsiveness i.e. the employees should be more

willing to help customers and provide prompt service. So that it would help it to retain

customers. We would also recommend them to improve upon their facility design which also

plays a crucial role in service sector.

CONCLUSION

The 5 dimension or variables which have been taken , play a crucial role in shaping up customer

perception towards service quality in telecom sector, though there was not much difference innetwork, schemes and promotion for both the companies which may be due to small sample

size. The service quality provided by AIRTEL is better than that of BSNL and AIRTEL has

been able to perceive the perception of their customers in better way than that of BSNL.

BIBLIOGRAPHY

Zeithaml, V. A. and Bitner, M. J., Services Marketing: Integrating Customer Focus Across theFirm, 2nd Edition, McGraw Hill, New York, NY, 2000.

Parasuraman, A; Zeithaml, V A and Berry, L L (1988). .SERVQUAL: A Multiple-item Scale forMeasuring Consumer Perceptions of Service Quality,. Journal of Retailing, 64(1), 12-40.

Kollmann, Tobias, "The Price/Acceptance Function: Perspectives of a Pricing Policy inEuropean Telecommunication Markets", European Journal of Innovation Management, Vol. 3(1), 2000, 7-14.


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Zeithaml, V.A., "Service Quality, Probability and the Economic Worth of Customers: What We

Know, and What We Need to Learn", Journal of the Academy Marketing Science, Vol. 28 (1),

2000, 67-85

Webliography

http://www.bsnl.co.in/

http://www.airtel.in/

http://www.trai.gov.in/
http://www.bsnl.co.in/http://www.airtel.in/http://www.trai.gov.in/http://www.bsnl.co.in/http://www.airtel.in/http://www.trai.gov.in/


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ANNEXURE


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