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Value Added Services




         Presented By:-
         Ashish Jajodia
        Drupad Parmar
        Jayesh Baldania
          Rinki Kumari
         Sandeep Goyal
       Sriram Santosh Bal
Agenda
• Outline

• Management decision problem
• Marketing research problem
• Research Design
   • Components
   • Research Methodology
   • Data collection tools
• Data Analysis
• Recommendation
Outline
 Mobile telephone is getting saturated in the Metro areas.


 The only way for the companies to increase revenue is by
providing value added service at a price.


 Required to advice the Co. XYZ to enable them to provide
profitable value added services.
Management Decision
         Problem
What value added services will generate
revenue for company XYZ?
Exploratory Research
• Primary
   • Reliance store
   • Vodafone store
   • Airtel store
• Outcomes
   • Caller tunes and missed call alerts are most popular.
   • Price is a barrier.
   • Most customers come to deactivate VAS.
Secondary Research
Secondary Research
Marketing Research
           Problem
Determine the awareness & willingness to pay for
existing & prospective services.
Research Components
Component 1
            Desire for the prospective services
List of information required:-
 Aspirations of the customer regarding prospective services.
 Value added services which can be introduced so that the
customers find value in it.
 Customization which a customer would prefer in existing
services.
 Kind of services a customer will be willing to spend his
hard earned money.
Component 2
         Awareness of the existing services
List of information required:-
    Customers know about the VAS being provided.
    How much are they aware of VAS?
Component 3
      Effectiveness of the existing services
List of information required:-
 Customer’s satisfaction with the services being offered.
 Any up gradation which the existing services require.
Component 4
    Willingness to spend on such services
List of information required:-
 Portion of the billed amount that corresponds to the
payment of VAS
 Customer’s willingness to spend on desired
services.
 Customers using low handsets be willing to pay for
VAS which is reasonably priced & compatible with
their handsets.
Component 5
 Demographic & psychographic profile of the customers
List of information required:-
    Target customers.
    Age group of customers.
Research Methodology

          Research
         instrument

        Tools for data
          analysis


        Scaling tools
Research Instrument
• Primary Research - Questionnaire
   – Sample size- 83
   – Personal Interview
   – Telephonic Interview
Data Analysis Tools

 Scales:-   Tools:-
 Nominal    • Mean
 Ordinal    • ANOVA
 Interval   • Kendell
  Ratio     • Z-test
Hypotheses
 Ho: Most of the customers are aware of VAS

 Ho: Price is the major barrier for subscription of VAS

 Ho: Customers are satisfied with VAS

 Ho: Customers don’t find value addition in VAS
Questionaire
• Q1- To analyse the importance of VAS among customers.
• Q2,Q3 & Q4-To check the awareness of value added services
  among customers.
• Q5-To trace the effectiveness among customers about existing
  value added services, need for customization & their
  willingness to spend on such customization.
• Q6 & Q7- To understand what stops the customers from
  availing value added services.
• Q8 & Q9-To understand the desire of customers for
  prospective services & their willingness to spend on such
  services.
• Q10 & Q11-To know the monthly bill & expenditure of value
  added services.
Data Analysis
Demographics
Type of connection
Data Analysis
• H0: Customer don’t find value addition in VAS.
• Inference
• H0: Most of the customers are aware of value added services
  Inference:- 91.56% is aware of the existence of VAS i.e they
  know about at least one of the VAS.
Data Analysis
• Medium of awareness
  Inference:- Promotional calls and SMSes are the major contributor towards
  such awareness
Data Analysis
• VAS recall
  Inference:- Basic services like Caller tune and GPRS have the maximum
   recall value.
Data Analysis
Data Analysis
• H0: Customers are satisfied with VAS.
Data Analysis
• Inference:- Out of the services which the customers are using
  such as Cricket alert, Stock alerts, News alerts, heavy chunk of
  customers want customization.
Data Analysis
• Services for those the customers are willing to pay more such
  as GPRS should be promoted and services like Cricket alerts,
  News alerts, if customized can add a lot of revenue for the
  company.
Data Analysis
Observation 3
Data Analysis
Data Analysis
Observation 4
• Customers who want to avail VAS & willingness to pay for
  customized existing services is determined.
Data Analysis
• H0: Price is a major barrier for subscription.
• Inference:-
   – Kendell Approach
   – Hypothesis testing
Data Analysis
• Inference:-
  Auto activation and hidden costs act as the deterrent for the customers.
Prospective Services
              Customer's Wish List
Inference:-Customers need specific services. So, if possible, customers
should be provided with those specific services to increase the revenue.
Prospective Services
Inference:- Customers are willing to pay for prospective
services in between 16-30 for the services offered so the
company can come out with these services at those price levels.
Data Analysis
• Monthly expenditure on VAS
   – Analysis- The finding of ANOVA suggests that the post paid and pre
     paid customers are INDIFFERENT towards VAS.
   – The graph below suggests that the subscription to prospective VAS is
     totally indifferent to the monthly phone bill.
Regression Analysis
• The regression between VAS bill and the Bill incurred has no
  relationship so VAS is not dependent on the amount of the
  monthly bill incurred.
• The regression between VAS bill and the age group is
  indifferent hence there is no dependence.
• The regression between VAS bill and the gender bias is
  indifferent hence there is no dependence.
• We can say that there is no specific SEGMENT which can be
  identified for VAS. So it should be directed to all.
Recommendation
• “Less Relevant” is the one of the major factor which stops
  customers from availing VAS. So, promotions should be
  designed in such a way that the customer find value in it and
  hence avail it.
• Educational services, Shopping payments, Live TV, Stock
  trading & Make my way services should be introduced and
  price should be kept within 16-30 Rs.
• If the company wants to increase revenue from the existing
  services, then it should give more customized services.
Recommendation
• Promotional calls, SMSes should be more encouraged to make
  customers more aware of their offerings as they are the most
  effective medium.

• TV ads, Newspapers & Billboards should be made more
  effective for promoting value added services.

• Customers are willing to pay for prospective services in
  between 16-30 for the services offered so the company can
  come out with these services at those price levels.
Recommendations
• Existing services like stock alerts, news alerts, cricket alerts, if
   customized, can increase the revenue for the company.

• Since, price is not a major barrier for subscription, we should
   not change the rates of existing services.

• Auto activation and hidden costs act as the deterrent for the
   customers to subscribe for VAS so the company should try and
   minimize such annoying factors so as to attract more
   customers.
Thank You..!!!!!

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Marketing Research on Mobile- Value Added Services

  • 1. Value Added Services Presented By:- Ashish Jajodia Drupad Parmar Jayesh Baldania Rinki Kumari Sandeep Goyal Sriram Santosh Bal
  • 2. Agenda • Outline • Management decision problem • Marketing research problem • Research Design • Components • Research Methodology • Data collection tools • Data Analysis • Recommendation
  • 3. Outline  Mobile telephone is getting saturated in the Metro areas.  The only way for the companies to increase revenue is by providing value added service at a price.  Required to advice the Co. XYZ to enable them to provide profitable value added services.
  • 4. Management Decision Problem What value added services will generate revenue for company XYZ?
  • 5. Exploratory Research • Primary • Reliance store • Vodafone store • Airtel store • Outcomes • Caller tunes and missed call alerts are most popular. • Price is a barrier. • Most customers come to deactivate VAS.
  • 8. Marketing Research Problem Determine the awareness & willingness to pay for existing & prospective services.
  • 10. Component 1 Desire for the prospective services List of information required:-  Aspirations of the customer regarding prospective services.  Value added services which can be introduced so that the customers find value in it.  Customization which a customer would prefer in existing services.  Kind of services a customer will be willing to spend his hard earned money.
  • 11. Component 2 Awareness of the existing services List of information required:-  Customers know about the VAS being provided.  How much are they aware of VAS?
  • 12. Component 3 Effectiveness of the existing services List of information required:-  Customer’s satisfaction with the services being offered.  Any up gradation which the existing services require.
  • 13. Component 4 Willingness to spend on such services List of information required:-  Portion of the billed amount that corresponds to the payment of VAS  Customer’s willingness to spend on desired services.  Customers using low handsets be willing to pay for VAS which is reasonably priced & compatible with their handsets.
  • 14. Component 5 Demographic & psychographic profile of the customers List of information required:-  Target customers.  Age group of customers.
  • 15. Research Methodology Research instrument Tools for data analysis Scaling tools
  • 16. Research Instrument • Primary Research - Questionnaire – Sample size- 83 – Personal Interview – Telephonic Interview
  • 17. Data Analysis Tools Scales:- Tools:- Nominal • Mean Ordinal • ANOVA Interval • Kendell Ratio • Z-test
  • 18. Hypotheses  Ho: Most of the customers are aware of VAS  Ho: Price is the major barrier for subscription of VAS  Ho: Customers are satisfied with VAS  Ho: Customers don’t find value addition in VAS
  • 19. Questionaire • Q1- To analyse the importance of VAS among customers. • Q2,Q3 & Q4-To check the awareness of value added services among customers. • Q5-To trace the effectiveness among customers about existing value added services, need for customization & their willingness to spend on such customization. • Q6 & Q7- To understand what stops the customers from availing value added services. • Q8 & Q9-To understand the desire of customers for prospective services & their willingness to spend on such services. • Q10 & Q11-To know the monthly bill & expenditure of value added services.
  • 22. Data Analysis • H0: Customer don’t find value addition in VAS. • Inference • H0: Most of the customers are aware of value added services Inference:- 91.56% is aware of the existence of VAS i.e they know about at least one of the VAS.
  • 23. Data Analysis • Medium of awareness Inference:- Promotional calls and SMSes are the major contributor towards such awareness
  • 24. Data Analysis • VAS recall Inference:- Basic services like Caller tune and GPRS have the maximum recall value.
  • 26. Data Analysis • H0: Customers are satisfied with VAS.
  • 27. Data Analysis • Inference:- Out of the services which the customers are using such as Cricket alert, Stock alerts, News alerts, heavy chunk of customers want customization.
  • 28. Data Analysis • Services for those the customers are willing to pay more such as GPRS should be promoted and services like Cricket alerts, News alerts, if customized can add a lot of revenue for the company.
  • 31. Data Analysis Observation 4 • Customers who want to avail VAS & willingness to pay for customized existing services is determined.
  • 32. Data Analysis • H0: Price is a major barrier for subscription. • Inference:- – Kendell Approach – Hypothesis testing
  • 33. Data Analysis • Inference:- Auto activation and hidden costs act as the deterrent for the customers.
  • 34. Prospective Services Customer's Wish List Inference:-Customers need specific services. So, if possible, customers should be provided with those specific services to increase the revenue.
  • 35. Prospective Services Inference:- Customers are willing to pay for prospective services in between 16-30 for the services offered so the company can come out with these services at those price levels.
  • 36. Data Analysis • Monthly expenditure on VAS – Analysis- The finding of ANOVA suggests that the post paid and pre paid customers are INDIFFERENT towards VAS. – The graph below suggests that the subscription to prospective VAS is totally indifferent to the monthly phone bill.
  • 37. Regression Analysis • The regression between VAS bill and the Bill incurred has no relationship so VAS is not dependent on the amount of the monthly bill incurred. • The regression between VAS bill and the age group is indifferent hence there is no dependence. • The regression between VAS bill and the gender bias is indifferent hence there is no dependence. • We can say that there is no specific SEGMENT which can be identified for VAS. So it should be directed to all.
  • 38. Recommendation • “Less Relevant” is the one of the major factor which stops customers from availing VAS. So, promotions should be designed in such a way that the customer find value in it and hence avail it. • Educational services, Shopping payments, Live TV, Stock trading & Make my way services should be introduced and price should be kept within 16-30 Rs. • If the company wants to increase revenue from the existing services, then it should give more customized services.
  • 39. Recommendation • Promotional calls, SMSes should be more encouraged to make customers more aware of their offerings as they are the most effective medium. • TV ads, Newspapers & Billboards should be made more effective for promoting value added services. • Customers are willing to pay for prospective services in between 16-30 for the services offered so the company can come out with these services at those price levels.
  • 40. Recommendations • Existing services like stock alerts, news alerts, cricket alerts, if customized, can increase the revenue for the company. • Since, price is not a major barrier for subscription, we should not change the rates of existing services. • Auto activation and hidden costs act as the deterrent for the customers to subscribe for VAS so the company should try and minimize such annoying factors so as to attract more customers.