Understanding consumer behavior in rural market for telecom


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Understanding consumer behavior in rural market for telecom

  1. 1. by B.Sandeep PGDM-RM
  2. 2. <ul><li>The Indian Telecom sector is third largest network in the world. </li></ul><ul><li>Second largest wireless network in the world. </li></ul><ul><li>Fastest growing telecom sector with an average addition of over 10-12 million subscribers per month. </li></ul><ul><li>Tele density in India is 54.10 </li></ul><ul><li>Tele density of rural in Andhra Pradesh stands at 22.24while the urban at 131.10 </li></ul>Total telecom subscribers : 638.05million Wireless subscribers : 601.22 million Wire line subscribers : 36.83 million Tele density : 54.10 % India’s Rural Mobile Phone Users : >100 Million
  3. 5. Wire less Wire line
  4. 6. <ul><li>Rural Tele density reached 21.16 and urban Tele density 110.96 at the end of Dec-09. The share of rural subscribers increased to 31% in total subscription. </li></ul>
  5. 7. <ul><li>There are 6,38,365 villages in India and almost 74% of population are in villages. </li></ul><ul><li>The country saw addition of an average of around 10 Million subscribers per month in its mobile subscriber base during 2009 with penetration approaching saturation in urban India. With this, mobile operators in the country are now vying rural India as their next area for growth in the near future. </li></ul><ul><li>Striking points </li></ul><ul><li>Affordability </li></ul><ul><li>Acceptability </li></ul><ul><li>Availability </li></ul><ul><li>Awareness </li></ul>
  6. 8. <ul><li>Brand Name: TATA Indicom </li></ul><ul><li>Network: CDMA 2000-1x </li></ul><ul><li>Network Coverage: 22Telecom circles </li></ul><ul><li>Subscriber base: > 39million </li></ul><ul><li>Market Share: 9-11% </li></ul><ul><li>Subscriptions: Post Paid, Pre Paid , internet facility </li></ul><ul><li>TATA Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996, TATA Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. </li></ul><ul><li>TATA Teleservices is part of the INR Rs2,51,543Crore (US$ 62.5 billion) TATA Group, that has over 110 companies, over 3,30,000 employees and more than 3.5million shareholders. </li></ul><ul><li>TATA Tele Services Limited along with TATA Tele Services (Maharashtra) Limited serves over 58.43 million customers in more than 6000 towns. </li></ul>
  7. 9. <ul><li>To understand customer perception and preference for telecom service in rural. </li></ul><ul><li>To Study and analyze the consumer behavior in rural areas. </li></ul><ul><li>To determine the factors which influence the purchasing behavior of mobile/landline phone. </li></ul><ul><li>To analyze the customer’s attitude towards TATA Indicom service </li></ul><ul><li>To determine the factors which influence the purchasing behavior of mobile connection. </li></ul><ul><li>To study the customer satisfaction and understand the current </li></ul><ul><li>market scenario in Telecom Sector. </li></ul>
  8. 10. <ul><li>Sample size </li></ul><ul><li>The number of sample is 300 from different rural areas of Andhra Pradesh, which fulfills the requirement. Each respondent is treated as a case of detailed analysis </li></ul><ul><li>  Data collection method </li></ul><ul><li>Primary Data: </li></ul><ul><li>The Primary data was a detailed interview schedule with the help of a detailed questionnaire. The samples were drawn purposively from various areas for the relevance of the study. </li></ul><ul><li>secondary Data: </li></ul><ul><li>For this study the secondary data were collected from magazines, journals, references and websites and manuals of the TATA Indicom. </li></ul>
  9. 11. Inference : Since customers are very much concerned about the features, TATA Indicom should look forward to impart more features in the coming models.
  10. 12. Inference: Customers are willing to spend more than 1500 i.e. around 2000 on mobile phone. They are ready to pay an additional price for the features.
  11. 13. Inference: Telecom service providers should concentrate more on signal strength and the price as they are given much importance by the customer while selecting a telecom service.
  12. 14. Inference: In rural areas since most of population constitute illiterates, Specific promotional activities should be adopted to get along with the customers.
  13. 15. Inference: In Rural, Media is not playing a major role in creating awareness about the products and services of TATA Indicom. So separate promotional activities should be designed which enable customers to know more about the products and services.
  14. 16. Inference: TATA Indicom is being preferred because of its economical tariff plans. And customers are expecting the same from the company in the coming future .
  15. 17. Inference: Pay per call is famous among the other plans since it has been in the market for a long time. Customers are also impressed with the fares of the plan.
  16. 18. Inference: Extent of connectivity and awareness of schemes are the major issues for which TATA Indicom is not being preferred by the customers.
  17. 19. Inference: From the above graph we can understand the affordability of the consumers. So telecom service providers should come up with new plans which fall into above mentioned category.
  18. 20. Inference: From the graph we can interpret that per call charges of TATA Indicom are highly satisfactory and also the per call charges of the other telecom service providers are not as good as TATA Indicom.
  19. 21. Inference: From the graph, we can interpret that most of the respondents who are availing Airtel & Idea, BSNL are highly satisfied with the wide network coverage (signal strength) where as the respondents who are availing TATA Indicom are dissatisfied with the same.
  20. 22. Inference: Majority of the respondents who are availing TATA Indicom are satisfied with schemes where as the respondents availing Airtel,Idea,BSNL are dissatisfied with the same.
  21. 23. Inference: Most of the customers are interested in value added services related to entertainment such as Mp3 tones, dialer tones etc and general news related to their regions. Youngsters are showing interest in value added services related to sports.
  22. 24. Inference: Customers don’t want to migrate to new service providers unless they are dissatisfied with the current service provider. More the consumer is satisfied with the products and services of the company eventually more they will become loyal to the company.
  23. 25. Inference: Extent of connectivity and the better schemes (in sense Economical &Value creating) offered by the alternative service provider are the major reasons for withdrawing from the current service provider.
  24. 26. Inference: Most of the customers are expecting good tariff plans and wide network coverage from their respective telecom service provider.
  25. 27. <ul><li>Reluctance on the part of the respondents to provide exact details. </li></ul><ul><li>Sample size may not sufficient. </li></ul><ul><li>Assumptions: </li></ul><ul><li>The area selected is assumed to represent whole universe of Indian rural telecom market. </li></ul><ul><li>Data collected are assumed to be bias free from side of respondents, interviewer or any other. </li></ul><ul><li>Whole research and analysis part based on data collected is carried out under unbiased environment and without any influence of any factor which can lead to deviation in result. </li></ul>
  26. 28. <ul><li>Over two thirds of India's population live in rural surroundings and in these telecoms have not really made their presence felt to any real extent. So telecom service providers should concentrate in rural areas. </li></ul><ul><li>It is probable in these rural areas that cheap call rates will link with state-of-the-art technology to boost tele density and offer more freedom. </li></ul><ul><li>Most of the customers in rural areas are less aware of different and services of different telecom service provides </li></ul><ul><li>Network is the main concern than the tariff plans. </li></ul><ul><li>Word of mouth influence the purchasing behavior of the target market so mobile operator should adopt some tactic to promote word of mouth promotion. </li></ul><ul><li>The customers are not satisfied with services because of the low quality high price, poor after sales services, less network coverage etc. </li></ul>
  27. 29. <ul><li>First of all more sales promotions required for mobile handset </li></ul><ul><ul><li>Set Quality & features should be improved. </li></ul></ul><ul><ul><li>Training must be given to the retailer for increasing the sales. </li></ul></ul><ul><ul><li>Training must be given to retailer about product knowledge, so that they can compete with other company’s product. </li></ul></ul><ul><li>To increase the sales, the telecom service providers should concentrate on the following aspects </li></ul><ul><li>Establishment of More towers in rural market </li></ul><ul><li>Availability of all types of recharge vouchers at distributor’s house. </li></ul><ul><li>To briefly describe all type of prepaid plan and recharge voucher. </li></ul><ul><li>More promotional activities are to be made in rural market such as 1.campaigning 2. Direct Marketing 3. Banner 4. Leaflet 5. Advertisement by Cable </li></ul><ul><li>Opening service centers in rural market </li></ul>
  28. 30. THANK YOU