A PROJECT REPORT
ON
RETAIL ANALYSIS FOR TATA
TELESERVICES LTD.
- By,
Ms. REENA ALVA
MMS (SEMESTER III)
BATCH 2008-2010
PROJECT GUIDE - PROF. MR. VINOD PURI
UNIVERSITY OF MUMBAI
ATHARVA EDUCATIONAL TRUST’S
ATHARVA INSTITUTE OF MANAGEMENT STUDIES
MALAD- MARVE ROAD, CHARKOP NAKA

MALD (WEST), MUMBAI 400095.
DECLARATION
I Ms. Reena Alva of Atharva Institute of Management Studies pursuing
Masters in Management Studies (Semester III) hereby declare that I have
completed this project on “Retail Analysis for Tata Teleservices Ltd” for the
academic period 2008-2010.
The information submitted is true and original to the best of my knowledge.
Signature of the Student
Date :

CERTIFICATE
This is to certify that Ms. Reena Alva of MMS (Semester III) Roll No. 4, from
Atharva Institute of Management Studies, Specializing in Marketing has
successfully completed the project titled “RETAIL ANALYSIS FOR TATA
TELESERVICES LTD”, Under the project guidance of Prof. Mr Vinod Puri and
has also conducted research with the help of materials, journals, internet, and
other related sources in the partial fulfillment of the requirement of the Degree of
Masters in Management Studies of the University of Mumbai, for the
academic period 2008-2010.

ACKNOWLEDGEMENT
A good piece of work is not merely a result of the brain child of one alone.
It is definitely shaped by many thoughts which guide, direct, advise and support. I
believe “RETAIL ANALYSIS FOR TATA TELESERVICES LTD” is my piece of
good work therefore…
I extend my special thanks to Mrs. Amruta Holkar my guide, mentor and my
greatest support system who taught me to climb a step of the corporate ladder.
My special thanks to Mr. Sunil Rane Executive President AET and Prof. Mr. N S
Rajan Dean AIMS for constantly guiding, motivating and encouraging me.
I also thank my project Guide Prof and Marketing Faculty Mr. Vinod Puri and for
giving me his valuable inputs for the project.
I am thankful to all the teaching and non teaching staff for their continuous
support and guidance.
And at last, never to be forgotten, my family and friends for their continuous
support, encouragement and patients.

PREFACE
‘Retail Analysis for Tata Teleservices Ltd’ is a project report prepared to
fulfill the requirement by the course on Master of Management Studies,
University of Mumbai.
The internship program was carried out at Tata Teleservices Ltd, A, E & F
Blocks, Voltas Premises, T.B. Kadam Marg, Chinchpokli, Mumbai – 400 033.
It was a great learning experience of having got the opportunity to work at the
corporate office of TTSL.
An advantage of working with an organization’s corporate branch is that the
scope of learning is widened. This is so because, the corporate office gives you
an overview of the operations across the whole country and is not limited to a
single area or region. Another such advantage is that you get a chance to
interact with the associates across the country and learn the different operational
trend at different regions.
I have made my best efforts to learn from my sources and compiling this project
report. Hope this piece of work serves the purpose of a good project report.

INTRODUCTION
‘Retail Analysis for Tata Teleservices Ltd’ is intended towards providing
efficient and relevant information on the retail operations of the TTSL stores
across the country.
The retail network of TTSL is the largest branded retail presence amongst all
telecom operators in the country and in fact, makes Tata Indicom the largest
retailer in India in terms of number of stores under one brand name.
Retail Analysis is a part of the job assigned to TTSL, Mumbai corporate branch’s
Branded Retail division. It is a very vital part of the retail and vending operations.
This project report is divided into 4 sections for better understanding.
 Section 1 ‘THE INDUSTRY’ gives you an overview of the Telecom
industry that TTSL is a part of.
 Section 2 ‘THE COMPANY – TTSL’ talks about the successful and vast
TATA GROUP and more specifically about TTSL, the child that operates
the Telecom Sector of the TATA GROUP.
 Section 3 ‘THE PROJECT RESEARCH’ – This section talks about the
research work undertaken to build this project
 Section 4 ‘FINDINGS AND INTERPRETATIONS’ – Gives a report on the
findings of the problem areas with causes and conclusions.
All this followed by a few recommendations for the company that are thought to
contribute to a better functioning and operations.

SECTION 1
THE INDUSTRY

THE INDIAN TELECOM INDUSTRY
The Indian telecommunications industry is one of the fastest growing in the world
and India is projected to become the second largest telecom market globally by
2010.
India added 113.26 million new customers in 2008, the largest globally. In fact, in
April 2008, India had already overtaken the US as the second largest wireless
market. To put this growth into perspective, the country’s cellular base witnessed
close to 50 per cent growth in 2008, with an average 9.5 million customers added
every month. According to the Telecom Regulatory Authority of India (TRAI), the
total number of telephone connections (mobile as well as fixed) had touched 385
million as of December 2008, taking the telecom penetration to over 33 per cent.
This means that one out of every three Indians has a telephone connection, and
telecom companies expect this pace of growth to continue in 2009 as well. "We
are extremely bullish that the growth will continue in 2009. This year, the number
of additions will be in excess of 130 million," according to T.V. Ramachandran ,
Director General, Cellular Operators Association of India (COAI), an industry
body that represents all Global System for Mobile communications (GSM)
players in India.
According to CRISIL Research estimates, eight infrastructure sectors, which
include the telecom sector, are expected to draw more than US$ 345.28 billion
investment in India by 2012.
With the rural India growth story unfolding, the telecom sector is likely to see
tremendous growth in India's rural and semi-urban areas in the years to come.
By 2012, India is likely to have 200 million rural telecom connections at a
penetration rate of 25 per cent. And according to a report jointly released by
Confederation of Indian Industry (CII) and Ernst& Young, by 2012, rural users will
account for over 60 per cent of the total telecom subscriber base.

According to Business Monitor International, India is currently adding 8-10 million
mobile subscribers every month. It is estimated that by mid 2012, around half the
country's population will own a mobile phone. This would translate into 612
million mobile subscribers, accounting for a tele-density of around 51 per cent by
2012.
It is projected that the industry will generate revenues worth US$ 43 billion in the
current FY of 2009-10.
Evolution of the industry - Important Milestones
History of Indian Telecommunications
Year
1851 First operational land lines were laid by the government near Calcutta
(seat of British power)
1881 Telephone service introduced in India
1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
Company (IRCC)
1947 Nationalization of all foreign telecommunication companies to form the
Posts, Telephone and Telegraph (PTT), a monopoly run by the
government's Ministry of Communications
1985 Department of Telecommunications (DOT) established, an exclusive
provider of domestic and long-distance service that would be its own
regulator (separate from the postal system)
1986 Conversion of DOT into two wholly government-owned companies:
The Videsh Sanchar Nigam Limited (VSNL) for international
telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for
service in metropolitan areas.
1997 Telecom Regulatory Authority of India created.

1999 Cellular Services are launched in India. New National Telecom Policy is
adopted.
2000 DoT becomes a corporation, BSNL
Major Telecom players
There are three types of players in telecom services:
• -State owned companies (BSNL and MTNL)
• -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)
• -Foreign invested companies (Vodafone, Bharti Tele-Ventures,
Escotel, Idea Cellular, BPL Mobile, Spice Communications)
 BSNL
On October 1, 2000 the Department of Telecom Operations, Government of India
became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL).
BSNL is now India’s leading telecommunications company and the largest public
sector undertaking. It has a network of over 45 million lines covering 5000 towns
with over 35 million telephone connections. The state-controlled BSNL operates
basic, cellular (GSM and CDMA) mobile, Internet and long distance services
throughout India (except Delhi and Mumbai). BSNL will be expanding the
network in line with the Tenth Five-Year Plan (1992-97). The aim is to provide a
telephone density of 9.9 per hundred by March 2007. BSNL, which became the
third operator of GSM mobile services in most circles, is now planning to
overtake Bharti to become the largest GSM operator in the country. BSNL is also
the largest operator in the Internet market, with a share of 21 per cent of the
entire subscriber base.
 BHARTI
Established in 1985, Bharti has been a pioneering force in the telecom sector
with many firsts and innovations to its credit, ranging from being the first mobile
service in Delhi, first private basic telephone service provider in the country, first
Indian company to provide comprehensive telecom services outside India in
Seychelles and first private sector service provider to launch National Long
Distance Services in India. Bharti Tele-Ventures Limited was incorporated on
July 7, 1995 for promoting investments in telecommunications services. Its
subsidiaries operate telecom services across India. Bharti’s operations are
broadly handled by two companies: the Mobility group, which handles the mobile

services in 16 circles out of a total 23 circles across the country; and the Infotel
group, which handles the NLD, ILD, fixed line, broadband, data, and satellite-
based services. Together they have so far deployed around 23,000 km of optical
fiber cables across the country, coupled with approximately 1,500 nodes, and
presence in around 200 locations. The group has a total customer base of 6.45
million, of which 5.86 million are mobile and 588,000 fixed line customers, as of
January 31, 2004. In mobile, Bharti’s footprint extends across 15 circles.
Bharti Tele-Ventures' strategic objective is “to capitalize on the growth
opportunities the company believes are available in the Indian
telecommunications market and consolidate its position to be the leading
integrated telecommunications services provider in key markets in India, with a
focus on providing mobile services”.
 MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the
quality of telecom services, expand the telecom network, introduce new services
and to raise revenue for telecom development needs of India’s key metros –
Delhi, the political capital, and Mumbai, the business capital. In the past 17
years, the company has taken rapid strides to emerge as India’s leading and one
of Asia’s largest telecom operating companies. The company has also been in
the forefront of technology induction by converting 100% of its telephone
exchange network into the state-of-the-art digital mode. The Govt. of India
currently holds 56.25% stake in the company. In the year 2003-04, the
company's focus would be not only consolidating the gains but also to focus on
new areas of enterprise such as joint ventures for projects outside India, entering
into national long distance operation, widening the cellular and CDMA-based
WLL customer base, setting up internet and allied services on an all India basis.
MTNL has over 5 million subscribers and 329,374 mobile subscribers. While the
market for fixed wireline phones is stagnating, MTNL faces intense competition
from the private players—Bharti, Hutchison and Idea Cellular, Reliance
Infocomm—in mobile services. MTNL recorded sales of Rs. 60.2 billion ($1.38
billion) in the year 2002-03, a decline of 5.8 per cent over the previous year’s
annual turnover of Rs.63.92 billion.
 RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an
integrated telecom service provider with licenses for mobile, fixed, domestic long
distance and international services. Reliance Infocomm offers a complete range
of telecom services, covering mobile and fixed line telephony including
broadband, national and international long distance services, data services and a
wide range of value added services and applications. Reliance IndiaMobile, the
first of Infocomm's initiatives was launched on December 28, 2002. This marked
the beginning of Reliance's vision of ushering in a digital revolution in India by
becoming a major catalyst in improving quality of life and changing the face of
India. Reliance Infocomm plans to extend its efforts beyond the traditional value

chain to develop and deploy telecom solutions for India's farmers, businesses,
hospitals, government and public sector organizations.
Until recently, Reliance was permitted to provide only “limited mobility” services
through its basic services license. However, it has now acquired a unified access
license for 18 circles that permits it to provide the full range of mobile services. It
has rolled out its CDMA mobile network and enrolled more than 6 million
subscribers in one year to become the country’s largest mobile operator. It now
wants to increase its market share and has recently launched pre-paid services.
Having captured the voice market, it intends to attack the broadband market.
 TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group, which has 93
companies, over 200,000 employees and more than 2.3 million shareholders.
Tata Teleservices provides basic (fixed line services), using CDMA technology in
six circles: Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil
Nadu, Gujarat, and Karnataka. It has over 800,000 subscribers. It has now
migrated to unified access licenses, by paying a Rs. 5.45 billion ($120 million)
fee, which enables it to provide fully mobile services as well.
The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90
million) to DoT for 11 new licenses under the IUC (interconnect usage charges)
regime. The new licenses, coupled with the six circles in which it already
operates, virtually gives the CDMA mobile operator a national footprint that is
almost on par with BSNL and Reliance Infocomm. The company hopes to start
off services in these 11 new circles by August 2004. These circles include Bihar,
Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar
Pradesh (East) & West and West Bengal.
 VSNL
On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly
Government owned corporation - was born as successor to OCS. The company
operates a network of earth stations, switches, submarine cable systems, and
value added service nodes to provide a range of basic and value added services
and has a dedicated work force of about 2000 employees. VSNL's main gateway
centers are located at Mumbai, New Delhi, Kolkata and Chennai. The
international telecommunication circuits are derived via Intelsat and Inmarsat
satellites and wide band submarine cable systems e.g.FLAG, SEA-ME-WE-2 and
SEA-ME-WE-3. The company's ADRs are listed on the New York Stock
Exchange and its shares are listed on major Stock Exchanges in India. The
Indian Government owns approximately 26 per cent equity, M/s Panatone
Finvest Limited as investing vehicle of Tata Group owns 45 per cent equity and
the overseas holding (inclusive of FIIs, ADRs, Foreign Banks) is approximately
13 per cent and the rest is owned by Indian institutions and the public. The
company provides international and Internet services as well as a host of value-

added services. Its revenues have declined from Rs. 70.89 billion ($1.62 billion)
in 2001-02 to Rs. 48.12 billion ($1.1 billion) in 2002-03, with voice revenues
being the mainstay. To reverse the falling revenue trend, VSNL has also started
offering domestic long distance services and is launching broadband services.
For this, the company is investing in Tata Telservices and is likely to acquire Tata
Broadband.
 VODAFONE
Vodafone was formerly known as Hutch. Hutch’s presence in India dates back to
late 1992, when they worked with local partners to establish a company licensed
to provide mobile telecommunications services in Mumbai. Commercial
operations began in November 1995. Between 2000 and March 2004, Hutch
acquired further operator equity interests or operating licenses. With the
completion of the acquisition of BPL Mobile Cellular Limited in January 2006, it
now provides mobile services in 16 of the 23 defined license areas across the
country. Hutch had over 17.5 million customers by the end of June 2006.
 IDEA
Indian regional operator IDEA Cellular Ltd. has a new ownership structure and
grand designs to become a national player, but in doing so is likely to become a
thorn in the side of Reliance Communications Ltd. IDEA operates in eight
telecom “circles,” or regions, in Western India, and has received additional GSM
licenses to expand its network into three circles in Eastern India -- the first phase
of a major expansion plan that it intends to fund through an IPO, according to
parent company Aditya Birla Group.
Growth in Segments
According to a Frost& Sullivan industry analyst, by 2012, fixed line revenues are
expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8
billion in India. Fixed line capex is projected to be US$ 3.2 billion, and mobile
capex is likely to touch US$ 9.4 billion.
Further, according to a report by Gartner Inc., India is likely to remain the world's
second largest wireless market after China in terms of mobile connections.
According to recent data released by the COAI, Indian telecom operators added
a total of 10.66 million wireless subscribers in December 2008. Further, the total
wireless subscriber base stood at 346.89 million at the end of December 2008.
The overall cellular services revenue in India is projected to grow at a CAGR of
18 per cent from 2008-2012 to exceed US$ 37 billion. Cellular market penetration
will rise to 60.7 per cent from 19.8 per cent in 2007.
The Indian telecommunications industry is on a growth trajectory with the GSM
operators adding a record 9.3 million new subscribers in January 2009, taking
the total user base to 267.5 million, according to the data released by COAI.
However, this figure does not include the number of subscribers added by
Reliance Telecom.

In WiMax, India is slated to become the largest WiMAX market in the Asia-Pacific
by 2013. A recent study sees India's WiMAX subscriber base hitting 14 million by
2013 and growing annually at nearly 130 per cent. And investments in WiMAX
ventures are slated to top US$ 500 million in India, according to a report by US-
based research and consulting firm, Strategy Analytics.
Value-Added Services Market
A report by market research firm IMRB stated that the mobile value-added
services (MVAS) industry was valued at US$ 1.15 billion in June 2008, and is
expected to grow rapidly at 70 per cent to touch US$ 1.96 billion by June 2009.
Currently, MVAS in India accounts for 10 per cent of the operator's revenue,
which is expected to reach 18 per cent by 2010. According to a study by Stanford
University and consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74
billion by 2010.
Mobile advertising, which is an important VAS segment, offers great potential to
become an important revenue source. Marketers are increasingly using MVAS as
a step ahead of SMS-based marketing to sell soaps and shampoos, banking,
insurance products and also entertainment services, and rural markets are
proving to be very receptive for such marketing.
Further, Venture Capitalists like Canaan Partners, Draper Fisher Juvertson,
Helion, and Nexus India are also innovating with services like mobile payment
options, advertising, voice-based SMS and satellite video streaming.
According to Venture Intelligence, there were nine deals worth US$ 41 million in
2007 in the mobile VAS space, and till August 2008, seven deals worth US$ 91
million had already been finalised. Presently, mobile VAS has a US$ 700 million
market with a 20 per cent y-o-y growth, which is likely to touch US$ 3 billion by
2012.
The booming domestic telecom market has been attracting huge amounts of
investment which is likely to accelerate with the entry of new players and launch
of new services.
Buoyed by the rapid surge in the subscriber base, huge investments are being
made into this industry.
• Norway-based telecom operator Telenor has bought a 60 per cent stake in
Unitech Wireless for US$ 1.23 billion.
• Japanese telecom major NTT DoCoMo has acquired a 27.31 per cent
equity capital of Tata Teleservices for about US$ 2.6 billion and a 20.25
per cent stake in Tata Teleservices (Maharashtra) Ltd for about US$
190.23 million.
• Singapore Telecommunications (SingTel), which has a 31 per cent stake
in Bharti Airtel has received the government’s approval to offer long
distance services in India, according to a communication ministry official.
• Mauritius-based P5 Asia Holding Investments (Mauritius) Ltd will be
investing around US$ 545.13 million to hold a 20 per cent stake in Aditya
Birla Telecom Ltd (ABTL). The funds will be utilised for network rollout and
operations of ABTL in the Bihar circle.

• Bharat Sanchar Nigam Ltd (BSNL) is planning an investment of around
US$ 201.5 million in the Tamil Nadu Circle for an additional 23 lakh mobile
connections under both 2G and 3G technologies by 2009.
• The latest to join the world's second largest telecom market is Bahrain's
Batelco which has signed a deal to buy 49 per cent in Chennai-based S-
Tel, a GSM service provider, for $225 million.
• Etisalat, a Gulf-based telecommunications company has picked up a 45
per cent stake in Swan Telecom.
• Kavveri Telecom Products Limited is planning to set up a new subsidiary -
Kavveri Telecom Infrastructure Limited (KTIL) - with an investment of US$
20.11 million over the next two years, to offer in-building telecom
infrastructure to telecom service providers.
• Juniper Networks, which is the second-largest maker of networking
equipment, plans to invest US$ 400 million in India, over the next five
years, with a focus on its research and development (R&D) activity.
• BSNL, India's leading telecom company in revenue terms, will put in about
US$ 1.16 billion in its WiMax project.
• Bharti Airtel will be spending US$ 2.5 billion in a major expansion bid.
• Reliance Communication has committed US$ 5.69 billion as capital
investment for the fiscal year ending March 2009.
• Idea Cellular will spend about US$ 2.36 billion in the fiscal ending March
2009.
• Srei Group's Quippo Telecom Infrastructure Ltd (QTIL) plans to invest
US$ 3 billion in 2008-09 to ramp up its telecom infrastructure business to
grow both organically and inorganically.
• Vodafone Essar will invest US$ 6 billion over the next three years in a bid
to increase its mobile subscriber base from 40 million at present to over
100 million.
• Telecom service provider, Tata Teleservices Limited, has announced that
the company will be investing additional US$ 6.74 million in Gujarat to set
up 100 cell sites by August 2009. The company had earlier made an
announcement of investing US$ 24.1 million in the state till March 2009.
• Telecom operator Aircel, which launched GSM mobile services in
Bangalore on February 23, 2009, plans to invest US$ 220.58 million over
the next year to set up base stations across the state.
Investments Abroad
After the amazing growth story in the domestic market, Indian telecommunication
companies are now set to have a major global footprint.
• The Bharti Group, which already has operations in Seychelles, (begun
over a decade ago), and in the Channel Islands in Europe, launched its
mobile services in Sri Lanka under 'Airtel' brand on January 12, 2009.
Airtel is expected to invest about US$ 200 million in setting up and
expanding its operation in Sri Lanka over the next five years. The

company will simultaneously roll out second generation (2G) and third
generation (3G) services in the country.
• DTH company Spize TV (owned by Pyramid Saimira Group) has bought
France Telecom's European DTH operations called WorldTV Europe.
• Tata Communications has bought the 30 per cent stake in Neotel that was
previously held by Eskom and Transnet. With this, Tata Communications
in association with Tata Africa Holdings became the largest stakeholder
with 56 per cent stake.
Tata Communications marked its entry into UAE by launching a range of
dedicated Ethernet services in association with leading telecommunication
service provider of UAE, Etisalat.
Manufacturing
India's telecom equipment manufacturing sector is set to become one of the
largest globally by 2010.
Mobile phone production is estimated to grow at a CAGR of 28.3 per cent from
2006 to 2011, totalling 107 million handsets by 2010. Revenues are estimated to
grow at a CAGR of 26.6 per cent from 2006 to 2011, touching US$ 13.6 billion.
Presently the telecom hardware manufacturing sector is dominated by
international majors like Nokia, Ericsson, LG, Motorola, Samsung and Alcatel-
Lucent, who have set up manufacturing bases in India. Domestic manufacturers
have little contribution in the segment. Other foreign majors that have set up
manufacturing bases in India include Foxconn, Flextronics Elcoteq Celestica,
Elextronics Aspocomp, Salcomp, Siemens, Cisco, Perlos and Solectron.
LG Electronics has announced that it will be further expanding its handset
manufacturing facility in India and Nokia will now be targeting rural India in its
expansion plans. In fact, Nokia Siemens Networks launched its new facility for
the production and distribution of mobile communications infrastructure at
Oragadam near Chennai.
Rural Telephony
Rural India had 76.65 million fixed and Wireless in Local Loop (WLL) connections
and 551,064 Village Public Telephones (VPT) as on September 2008. Therefore,
92 per cent of the villages in India have been covered by the VPTs. The target of
80 million rural connections by 2010 is likely to be met during 2008 itself.
Universal Service Obligation (USO) subsidy support scheme is also being used
for sharing wireless infrastructure in rural areas with around 18,000 towers by
2010.
The Indian wireless industry, with a 32 per cent penetration, is only second after
China in terms of subscribers at 325 million. Most of this growth has come from
urban India where penetration is close to 60 per cent, but in rural markets it's less
than 15 per cent. And it's here that the industry sees the largest opportunity for
growth.

Policy Initiatives
The government has taken many proactive initiatives to facilitate the rapid growth
of the Indian telecom industry.
• The Cabinet Committee on Economic Affairs (CCEA) has adopted new
guidelines for computation of foreign equity holding in Indian companies.
The new norm is expected to allow companies in a sector like telecom to
raise the extent of foreign investment. The new norms will benefit all such
companies that have touched their foreign direct investment ceiling and
part of the investment is through an Indian company owned and controlled
by resident Indians. "All investments directly by a non-resident entity into
an Indian company will be counted as foreign in-vestment, while foreign
investment through an investing Indian company will not be considered for
calculation of the indirect foreign investment, in case the Indian company
is owned and controlled by resident Indian citizens," according to Home
Minister Mr. P Chidambaram.
• 100 per cent foreign direct investment (FDI) is permitted through the
automatic route in telecom equipment manufacturing.
• FDI ceiling in telecom services has been raised to 74 per cent.
• Introduction of a unified access licensing regime for telecom services on a
pan-India basis.
• Introduction of mobile number portability in a phased manner, starting in
the fourth quarter of 2008.
• The government is implementing a program of connecting 66,822
uncovered villages under the Bharat Nirman programme. The government
will invest US$ 2 billion to set up 1.12 lakh community service centres in
rural India to provide broadband connectivity in 2008-09.
• The Finance Ministry has declared a five-fold (from US$ 100 million to
US$ 500 million) increase in the external commercial borrowings amount,
which companies involved in infrastructure sectors can borrow from
overseas to spend in India.
• In another move, the Department of Telecommunications (DoT) has stated
that foreign telecom companies can bid for 3G spectrum without
partnering with Indian companies. Only after winning a bid, would they
need to apply for unified access service licence (UASL) and partner with
an Indian company in accordance with the FDI regulations.
• Further, the Reserve Bank of India (RBI) has eased its mobile-banking
norms, by raising the caps on fund transfers as well as mobile-based
payments, and increasing the transaction limit to US$ 96.81 per day for
fund transfers.
• The Department of Telecom has allowed passive infrastructure sharing
among operators, which includes sharing of physical sites, buildings,
shelters, towers, power supply and battery backup. In early 2008, it also
allowed sharing of active infrastructure but it has been limited to antenna,

feeder cable, node B, radio access network and transmission systems and
not sharing of spectrum.
The Road Ahead
As on October 17, 2008, there were 350 million mobile and fixed line subscribers
in India, with about 8 million subscribers being added each month. The Union
Minister for Communications and Information Technology, Mr A Raja, has stated
that the target for the 11th Plan period (2007-12) is 600 million phone
connections with an investment of US$ 73 billion. Apart from the basic telephone
service, there is an enormous potential for various value-added services. In fact,
the real potential for telecom service growth is still lying untapped.
The Indian rural market is going to be the next big thing for wireless telecom
providers. With the tele-density in rural areas being still about 10 per cent against
the national average of about 21 per cent, there seems to be huge untapped
potential for mobile phone penetration in rural India. The government also plans
an investment of US$ 2 billion, during 2008 to 2009, for the development of
around 100,000 community service centres in rural India to provide broadband
connectivity.
Additionally, by 2010, the government targets:
• 80 million rural connections
• Mobile coverage of 90 per cent geographical area
• Internet Protocol Television (IPTV) in 600 towns
• Quadrupling manufacture
• Two-fold increase in telecom equipment R&D from the current level of 15
per cent.
According to the CII Ernst& Young report titled 'India 2012: Telecom growth
continues', revenue from India's telecom services industry is projected to reach
US$ 54 billion in 2012, as against US$ 31 billion in 2008. According to Mr
Prashant Singhal, Telecom Industry Leader, Ernst& Young India, "Going forward,
rural telephony, 3G, WiMax and data services will drive sector growth in 2012.
The industry will witness sustained growth in mobile services and data revenues.
Network expansion will continue in order to support the rural growth."
In addition to this, some interesting new developments worth tracking include:
• The emergence of digital media advertising (internet, mobile and digital
signage) as the medium of choice for advertisers. Of the available media,
it was the fastest growing segment in 2008. According to a FICCI-PwC
report, it is expected to touch US$ 211.97 million in 2011 from the current
US$ 57.1 million.
• The robust sales of ‘smartphones’ which do not seem to have been
adversely affected by the economic slowdown. Smartphones, which have
computer-like features, are a favourite with not only professionals, as they
enhance productivity, but also with the youth that are attracted by their
multimedia applications. Smartphones market, sized at 5 million in 2008,
is expected to witness a compound annual growth rate (CAGR) of 23 per
cent by 2011, as per technology research firm Ascendia.

Global mobile phone vendors are going green in India. Vihaan Network Ltd, a
group company of Shyam Group has launched the world’s first zero opex GSM
systems powered by solar energy rather than conventional sources. In a recently
launched initiative, Nokia collected three tonnes of junk handsets, batteries,
chargers and accessories from four cities during a 45-day campaign. The
collected junk will be taken to Singapore for recycling. Hundred per cent of the
materials in the phones can be recovered and used to make new products.
SECTION 2
THE COMPANY

LEADERSHIP WITH TRUST
Tata Group is one of India's largest and most respected business groups. Tata
Group's name is synonymous with India's industrialisation. The Group gave India
her first steel plant, hydro-electric plant, inorganic chemistry plant and created a
reservoir of scientific and technological manpower for the country. Its Trusts have
instituted the Tata Institute of Social Sciences in 1936; India's first cancer
hospital, the Tata Memorial in 1941, and in 1945, the Tata Institute of
Fundamental Research, which became the cradle of India's Atomic energy
program. Today, Tata Group comprises 96 operating companies in seven
business sectors: information systems and communications; engineering;
materials; services; energy; consumer products; and chemicals. The Group has
operations in more than 54 countries across six continents, and its companies
export products and services to 120 nations. The total revenue of Tata

companies, taken together, was $62.5 billion (around Rs.251, 543 crores) in
2007-08, with 61 per cent of this coming from business outside India, and they
employ around 350,000 people worldwide. The Tata name has been respected in
India for 140 years for its adherence to strong values and business ethics.
Every Tata company or enterprise operates independently. Each of these
companies has its own board of directors and shareholders, to whom it is
answerable. There are 27 publicly listed Tata enterprises and they have a
combined market capitalisation of some $60 billion, and a shareholder base of
3.2 million. The major Tata companies are Tata Steel, Tata Motors, Tata
Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian
Hotels and Tata Communications and Tata Teleservices.
THE FOUNDER
Jamsetji Nusserwanji Tata laid the foundations of Tata Group when he started a
private trading firm in 1868. In 1874, he set up the Central India Spinning
Weaving and Manufacturing Company Limited and thus marked the Group's
entry into textiles. In 1887, Jamsetji Tata formed a partnership firm, Tata & Sons,
with his elder son Sir Dorabji Tata and his cousin Ratanji Dadabhoy Tata. His
younger son Sir Ratan Tata joined the firm in 1896. In 1902, the Indian Hotels
Company was incorporated to set up the Taj Mahal Palace and Tower, India's
first luxury hotel, which opened in 1903. The Tata Iron and Steel Company (now
known as Tata Steel) was established to set up India's first iron and steel plant in
Jamshedpur. The plant started production in 1912. In 1910, Tata Hydro-Electric
Power Supply Company, (now Tata Power) was set up. In 1917, Tata Oil Mills
Company was established to make soaps, detergents and cooking oils. In 1932,
Tatas entered aviation sector with the establishment of Tata Airlines. In 1939,
Tata Chemicals, presently, the largest producer of soda ash in India, was
established. In 1945, Tata Engineering and Locomotive Company (renamed Tata
Motors in 2003) was established to manufacture locomotive and engineering
products. In 1954, India's major marketing, engineering and manufacturing
organisation, Voltas, was established. In 1962, Tata Finlay (now Tata Tea), one
of the largest tea producers, was established. In 1968, Tata Consultancy
Services (TCS), India's first software services company, was established as a
division of Tata Sons. In 1970, Tata McGraw-Hill Publishing Company was

created to publish educational and technical books. In 1984, Titan Industries, a
joint venture between the Tata Group and the Tamil Nadu Industrial
Development Corporation (TIDCO), was set up to manufacture watches. In 1996,
Tata Teleservices (TTSL) was established to lead the Group's foray into the
telecom sector. In 1998, Tata Indica, India's first indigenously designed and
manufactured car was launched by Tata Motors. In 2000, Tata Tea acquired the
Tetley Group, UK. This was the first major acquisition of an international brand by
an Indian business group. In 2001, Tata entered into insurance business in joint
venture with Tata AIG. In 2007, Tata Steel acquired Corus the fifth largest steel
company in the world.In tandem with the increasing international footprint of Tata
companies, the Tata brand is also gaining international recognition. Brand
Finance, a UK-based consultancy firm, recently valued the Tata brand at $9.92
billion and ranked it 51st among the world's Top 100 brands. Businessweek
magazine ranked Tata 13th among the '25 Most Innovative Companies' list and
the Reputation Institute, USA, recently rated it 11th on its list of world's most
reputable companies.
Tata companies have always believed in returning wealth to the society they
serve. Two-thirds of the equity of Tata Sons, the Tata promoter company, is held
by philanthropic trusts that have created national institutions for science and
technology, medical research, social studies and the performing arts. The trusts
also provide aid and assistance to non-government organisations working in the
areas of education, healthcare and livelihoods. Tata companies also extend
social welfare activities to communities around their industrial units. The
combined development-related expenditure of the trusts and the companies
amounts to around 4 per cent of the net profits of all the Tata companies taken
together.
Going forward, Tata is focusing on new technologies and innovation to drive its
business in India and internationally. The Nano car is one example, as is the Eka
supercomputer (developed by another Tata company), which in 2008 was ranked
the world’s fourth fastest. Anchored in India and wedded to traditional values and
strong ethics, Tata companies are building multinational businesses that will
achieve growth through excellence and innovation, while balancing the interests
of shareholders, employees and civil society.

Tata Group is one of the leading business conglomerates in India and
telecommunication is one of the heavily invested areas of the group. Tata’s
telecommunication business is covered by four companies: Tata Teleservices
Limited (TTSL) aka Tata Indicom and its associate, Tata Teleservices
(Maharashtra) Limited (TTML), Tata Communication, formerly known as Videsh
Sanchar Nigam Limited, and Tata Sky. TTSL is the leader in fixed wireless
telephony market with a total subscriber base of 3.8 million. According to the data
of fiscal year 2006, TTSL has an investment capital of $7.5 billion.
Tata started its foray into the telecom sector in 1996. In December 2002, Tata
Teleservices acquired Hughes Telecom (India) Limited and renamed it to Tata
Teleservices (Maharashtra) Limited (TTML). The company aggressively
expanded its network around India. Initially, it invested Rs.199.24 billion. Tata
Indicom operates in more than 5000 towns divided in twenty circles all over India.

These circles are: Andhra Pradesh, Chennai, Gujarat, J & K, Karnataka, Delhi,
Maharashtra, Mumbai, North East, TamilNadu, Orissa, Bihar, Rajasthan, Punjab,
Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala,
Kolkata, Madhya Pradesh and West Bengal. In these areas, TTSL and TTML
jointly have a customer base of 28 million and it is still expanding its areas inside
the country.
Tata Teleservices Limited spearheads the Tata Group’s presence in the telecom
sector. The Tata Group had revenues of around US $62.5 bn in Financial Year
2007-08, and includes over 90 companies, around 350,000 employees worldwide
and more than 3.2 million shareholders.
Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x
technology platform in India. It has embarked on a growth path since the
acquisition of Hughes Tele.com (India) Ltd [renamed Tata Teleservices
(Maharashtra) Limited] by the Tata Group in 2002. It launched mobile operations
in January 2005 and today enjoys a pan-India presence through existing
operations in all of India’s 22 telecom Circles. The company is also the market
leader in the fixed wireless telephony market. The company’s network has been
rated as the ‘Least Congested’ in India for last four consecutive quarters by the
Telecom Regulatory Authority of India through independent surveys.
Tata Teleservices Limited now also has a presence in the GSM space, through
its joint venture with NTT DOCOMO of Japan, and offers differentiated products
and services under the TATA DOCOMO brand name. TATA DOCOMO arises
out of the Tata Group’s strategic alliance with Japanese telecom major NTT
DOCOMO in November 2008. TATA DOCOMO has received a pan-India license
to operate GSM telecom services—and has also been allotted spectrum in 18
telecom Circles and will roll out its services shortly, starting with South India.
TATA DOCOMO marks a significant milestone in the Indian telecom landscape,
as it stands to redefine the very face of telecoms in India. Tokyo-based NTT
DOCOMO is one of the world’s leading mobile operators—in the Japanese
market, the company is the clear market leader, used by over 50 per cent of the
country’s mobile phone users.
Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd,
serves over 36 million customers in more than 320,000 towns and villages across
the country, with a bouquet of telephony services encompassing Mobile
Services, Wireless Desktop Phones, Public Booth Telephony and Wireline
Services. Other services include value-added services like Voice Portal,
Roaming, Post-paid Internet Services, Three-way Conferencing, Group
Calling, Wi-Fi Internet, USB Modem, Data Cards, Calling Card Services and
Enterprise Services. Some of the other products launched by the company
include Pre-paid Wireless Desktop Phones, Public Phone Booths, Mobile
Handsets and Voice & Data Services such as BREW Games, Voice Portal,
Picture Messaging, Polyphonic Ring Tones, and Interactive Applications
like news, cricket, astrology, etc.

In December 2008, Tata Teleservices announced a unique reverse equity swap
strategic agreement between its fully-owned telecom tower subsidiary, Wireless
TT Info-Services Limited, and Quippo Telecom Infrastructure Limited—with the
combined entity kicking off operations with 18,000 towers, thereby becoming the
largest independent entity in this space. Tata Teleservices’ bouquet of telephony
services includes mobile services, wireless desktop phones, and public booth
telephony and wireline services.
Franchise with Virgin mobile
In order to attract the young generation, in March 2008, Tata Indicom and Virgin
Mobile, a UK based youth oriented mobile phone company, started Virgin mobile.
Initially, Virgin Mobile wanted to act as a Mobile Virtual Network Operator but
Indian Telecom authority did not give out the MVNO license. Under MVNO
system, a mobile company buys up necessary space from an existing wireless
company and resells under their own brand. This system is not present in India.
As a result, Virgin and Tata signed a franchise deal under which Virgin Mobile
will be owned by Tata Teleservices. Under the later agreement, Virgin Mobile will
release its mobile phones through Tata Indicom. It will also use Tata Indicom’s
telecom network to offer its services. The revenue will be split 50:50.
Virgin Mobile phone service is targeted toward young people between 14 and 25
years of age. Virgin Mobile is a UK-based mobile company founded by Richard
Branson. Initially, the service was offered in fifty Indian cities. By December
2008, the officials targeted to spread the service in 1000 cities. In the initial
stage, Virgin mobile targeted million base subscribers and generate revenue in
the next three years. The company offered mobile handsets ranging from $50 to
$125.
Trivia
• In March 2008, Tata Indicom subscriber base reached a hopping 24.3
million in the wireless category and its over all subscriber base was more
than 25 million.
• TTSL maintained a compound annual growth rate of 113% in the wireless
segment.
• In Delhi NCR region, TTSL gained the second slot removing Vodafone
with a subscriber base of 3 million.
• In November 2008, Tata Teleservices sold out 26% of its stake to
Japanese telecom giant NTT DOCOMO for $2.7 billion.
• TTSL pioneered the VAS (Value Added Services) in India.
• Some of the major Bollywood stars endorsing Tata Indicom are: Kajol,
Trisha, Irfan Pathan, Pooja Ruparel and Saurav Ganguly.
• Tata Indicom’s Freedom Call Voucher television commercial was highly
appreciated. The TV commercial stars Pooja Ruparel and Kajol. Pooja

Ruparel sits in the locker-room holding a stop watch on one hand and
talking to her friend over the phone non stop. She was worried about talk
time. Then, Kajol enters and gives her Tata Indicom’s freedom call offer
which ensures free unlimited talk time.
• In 2007, Synovate, a leading market research firm, conducted a survey
which revealed that Tata Indicom was voted number one by Television
viewers in major Indian metropolitan areas in September.
• Tata also gives services in remote villages in India at a very low cost.
There are mobile vans that go to different villages and operate as
customer touch points. Trained TTSL officials visit different villages on
particular days of a week selling recharge vouchers and service
equipments. Each person covers 200-300 people.
• In 2007, Tata Indicom launched an online portal named ichoose. Through
these web-portals, users of Tata phones and interested people can buy
phones and recharge their phones online.
• In October 2007, Tata Zone, an infotainment service for Hindi speaking
Indians. There are various applications such as Cricket, Faith and
Prayers, Bollywood and Hollywood movies, News, Astrology, Funzone,
and Games. Users can also download ringtones and wallpapers.
• In March 2008, Tata Indicom launched a free-of-cost i-Help Emergency
service. Available to all the pre-paid and post-paid phone users of TTSL, i-
Help enables the user to connect with his/her family anytime. Under this
facility, users would have access to three local numbers. In case of
emergency, s/he would dial *44 and Tata will send SMS to his close ones.
Areas of Business
Having pioneered the CDMA 2000-1x technology platform in India, Tata
Teleservices has established a 3G-ready robust and reliable telecom
infrastructure in partnership with Motorola, Ericsson and Lucent. The company
has also received the license from the Department of Telecommunications to
launch GSM services. With the launch planned for 2009, TTSL is on the
threshold of emerging as a true-play dual technology telecom operator.
In November 2008, Tata Teleservices entered into an agreement with Japanese
telecom major NTT DOCOMO, moving it closer to a pan-India dual network
presence. The company also recently announced a unique reverse equity swap
strategic agreement between its fully-owned telecom tower subsidiary, Wireless
TT Info-Services, and Quippo Telecom Infrastructure — with the combined entity
kicking off operations with 18,000 towers, thereby becoming the largest
independent entity in this space.
Some of the other products launched by the company include new mobile
handsets and new voice and data services such as BREW games, voice portal,
picture messaging, polyphonic ring tones, interactive applications like news,
cricket, astrology, etc. The company’s Tata Indicom ‘Non Stop Mobile’ allows
customers to receive free incoming calls.

Tata Teleservices also has India’s largest branded telecom retail chain and is the
first service provider in the country to offer an online channel — www.ichoose.in
— to offer post-paid mobile connections in the country.
Products and Services
On the products and services front, TTSL expanded its bouquet by offering ire-
free Internet (Wi-Fi) and DSL services, besides mobile, wire line, FWT and data
services. Tata Indicom, launched by TTL in late 2002, gained in strength as it
became the umbrella brand for the various telecom initiatives of the Tata Group
as a whole. As part of this process, the Tata Indicom brand was later adopted by
VSNL, Tata Internet Services and TTL (Maharashtra).
Today the brand encompasses a suite of products, including mobile, wire line,
FWT, national long distance, international long distance, and data and Internet
services. Tata Indicom also offers its customers value-added services such as
voicemail, data and information services.
TTSL’s workforce swelled to more than 5,000 in 2003 as it stepped on the growth
accelerator. Following a shift in headquarters from Hyderabad to Mumbai, the
company is currently on a recruitment drive to kick start operations across 11
additional telecom circles.
Collaborations with Lucent, Motorola and Alcatel for the deployment of network
infrastructure have enabled TTSL to deliver the best of technology to its
customers. In October 2003 the company signed a $150-million deal with
Ericsson to deploy the latter’s CDMA2000 1X wireless infrastructure across India.
This network is expected to be in service by early 2004.
TTSL has joined hands with DishnetDSL, a leading Internet service provider and
broadband pioneer, to offer broadband services to Tata Indicom subscribers
through TTSL's wire line network. The key benefit of this strategic partnership to
customers is a cost-effective, high-speed, ‘always-on’ broadband Internet
connection at a monthly cost of just Rs 995.
There was more in the partnerships sphere for TTSL in 2003. It undertook a joint
initiative with Tata Infotech, India’s leading systems integrator, to develop state-
of-the-art wireless date applications. Under the agreement, the two companies
will be setting up a wireless application lab at IIT, Mumbai, to develop new
wireless products that can be used to exploit emerging opportunities in wireless
data transmission. On the development menu are speech and script recognition
software, video streaming, ATM-based applications and mobile applications for
games, news and sports updates, music downloads, etc
Also in 2003, TTSL spearheaded the Wi-Fi revolution in India by teaming up with
the coffee chain, Barista. As part of the tie-up, TTSL will roll out Wi-Fi services
across key Barista outlets in the country. Tata Indicom services are already being
served up offered at 10 Barista outlets across the country, with Wi-Fi cards being
available to customers at Rs 25 per half-hour.
TTSL has identified three key market segments for its Wi-Fi offerings: enterprise
hotspots for company sales and marketing forces located in franchisee or

distributors’ premises; replacement of wired local-area networks with Wi-Fi in
companies; and ‘hot spots’ at airports, shopping centres, malls and hotels.
MARKET POSITION
List of top 30 Telecom companies in India:
 Market valuations as on 20 MAR 2009
Company Name Market Cap in Crores
Bharti Airtel 108066.23
Reliance Communications 32683.44
Idea Cellular 14368.92
Tata Communications 13181.25
Tata Teleservices 4393.06
Spice Communications 4136.13
MTNL 4044.6
GTL 2475.12
GTL Infrastructure 2210.49
OnMobile Global 1403.52

HFCL Infotel 457.73
ITI 413.28
Him.Fut.Comm 386.99
Astra Microwave 241.88
Gemini Communications 125.71
Avaya Global 118.54
Shyam Telecom 64.58
Nelco 63.55
XL Telecom & Energy Limited 55.96
Goldstone Infratech Ltd 52.6
Nu Tek 48.16
Kavveri Telecom 26.51
Krone Communications 24.52
Mobile Telecommunications Ltd 17.37
Valiant Communications 16.58
Pun.Communi. 16.19
Nettlinx 12.68
Aishwarya Telecom Ltd 9.86
Interg.Digit 3.15
Vital Communications 2.81
The TTSL Retail Sector
Tata Teleservices Limited (TTSL) has registered its name in Limca Book of
records as the first telecom operator in India to inaugurate 100 True Value
Shoppes (TVS) across the nation on a single day.
The exercise was a part of the massive expansion drive and brand strengthening
of the CDMA major. The company has rolled out 1,000 retail outlets in the past
180 days and is planning to add 1,000 more stores in the near one year. The
company has also re-branded the stores as Tata Indicom Exclusive Stores. They
were earlier known through two separate formats—a True Value Hubs and True
Value Shoppes.
It is a part of brand building and expansion drive. They are continuously working
on this front and looking for some more tie-ups in future. Most towns with a
population of 50,000 and above within the 20 circle of TTSL’s operation would
have the presence of such outlets.
The Branded Retail Business Unit looks after the retail chain of the Tata Indicom
Exclusive stores. Branded retail has a national presence with over 3100 outlets
comprising of 600 TTSL (Company) owned stores and more than 2500 stores in

the Franchisee format. Branded Retail outlets have become the touch points for
its customers in more than top 1000 towns in India. These outlets are designed
to ensure similar experience across both company-owned outlets as well as
franchised outlets.
This network of outlets is the largest branded retail presence amongst all telecom
operators in the country and in fact, makes Tata Indicom the largest retailer in
India in terms of number of stores under one brand name.
TATA Business Excellence Model
Tata Business Excellence Model is a framework which helps companies to
achieve excellence in their business performance. This is the chosen model by
the TATA group to help in building globally competitive organizations across
TATA Group companies. TBEM is based on the Malcolm Balridge National
Quality Award Model of the U.S.
 The Criteria has three important roles in strengthening
competitiveness:
• To help improve organizational performance practices, capabilities, and
results
• To facilitate communication and sharing of best practices information
among all organisations within TATA Group.
• To help in guiding organizational planning and opportunities for learning
 TBEM Criteria is designed to help organizations use an integrated
approach to organisational performance management that results in

• Delivery of ever-improving value to customers and stakeholders,
contributing to organizational sustainability
• Improvement of overall organisational effectiveness and capabilities
• Organisational and personal learning
 The Criteria are built on the following set of 11 Interrelated Core
Values and Concepts:
• Visionary Leadership
• Customer-driven Excellence
• Organisational and Personal Learning
• Valuing Employees and Partners
• Agility
• Focus on the Future
• Managing for Innovation
• Management by Fact
• Social Responsibility
• Focus on Results and Creating Value
• Systems Perspective
 The Core Values and Concepts are embodied in seven Categories, as
follows:
• Leadership
• Strategic Planning
• Customer and Market Focus
• Measurement, Analysis, and Knowledge Management
• Work force Focus
• Process Management
• Business Results
The TBEM criteria are the operational details of the Core Values, applied to the
different facets of a Business organisation.
The 7 Criteria Categories are divided into 18 items and 32 Areas to Address
 The TBEM framework has the following characteristics
• Focus on Business results
• Non-prescriptive and Adaptable
• Maintains System Perspective

• Supports Goal based diagnosis
TBEM instills a process centric approach in an organisation as a means to
achieve the chosen Business Goals

SECTION 3
THE PROJECT RESEARCH
RETAIL ANALYSIS
I] WHAT IS RETAIL ANALYSIS?
Analysis is the process of breaking a complex topic or substance into
smaller parts to gain a better understanding of it.
Retail Analysis refers to carrying out the analysis of the retail operations
for an organisation. This is done by breaking the complex retailing operation into
smaller parts, studying it and understanding it better, to improve the retail
function.

Retail analysis can be done by field visits and inspections or by studying
the data at hand. It is a research done to inspect the retail function of a business
unit. Retail analysis studies the retail factors such as sales, store management,
sales revenue etc.
II] IMPORTANCE AND RELEVANCE
Merely contracting with vendors to sell a product or market a service is not
enough. For a company to have well performing Retail units, especially its
franchisees, the job doesn’t end by mere contracting and levying of marketing
and sales job on the vendors. It has to keep on a constant check on the
performance of the stores owned by these vendors. Retail analysis makes this
possible. Hence it is essential for every business unit in charge of the retailing
operations to carry out periodical retail analysis to have a report of the retail
functions.
At TTSL Retail Analysis is an important function of the Branded Retail
(BR) team. This function is carried out on a monthly basis. Retail analysis helps
the BR team to constantly keep an update of all the vendors under TTSL and
inspect the retail operations carried out by them. Every subject of retail analysis
is important for the retail business. If a ‘sales’ is chosen as a subject of analysis,
the BR team will have information of the sales function and performance by all its
vendors and they might be able to raise the sales graph as planned.Retail
Analysis is also helpful for future predictions and forecast. By studying the retail
factor trends it becomes possible and easy to forecast future trend. Thus the
company can be ready for slowdowns or increase output if they speculate a rise.
The analysis report is referred to, by the TTSL management at all levels,
the retail heads, retail operations personnel’s, the vendors and all concerned with
the retail function and performance.
III] PROCEDURE FOR RETAIL ANALYSIS
The following is the procedure used for Retail Analysis at TTSL:
Step 1: Analyzing the raw data
A raw data is a compilation of end to end specifications/ figures related to
a certain product or service in the company. One can choose and pick the details
required, from the raw data and work on it.
At TTSL a raw data sheet called ‘Productivity Based Performance
Contract’ (PBPC) is compiled every month using Microsoft Office Excel (Refer to
the CD to view the PBPC data). This data is used for analysis and recording

purposes. It contains details of all the retail stores under TTSL (Both ‘Company
Owned Company Operated’ and Franchisees). The data states the Store name
and Store code, name of the vendor to whom the store belongs, the region of
operation and all relevant figures of sales and operations. It is the source of
information needed for retail analysis.
Before doing the analysis one needs to go through the PBPC data and
study the particulars that the data provides. This helps in deciding the different
subjects of analysis.
 The following is the list of the vendors of TTSL and the number of
stores owned by them:
Sr. No VENDOR REGION STORE COUNT
1. Mahadev Enterprises U P EAST 1
2. Namarathi KARNATAKA 1
3. Shanti House U P EAST 1
4. SLV Enterprises KARNATAKA 1
5. Kabson KARNATAKA 2
6. Kote Mktg KARNATAKA 2
7. Mobile Junction KARNATAKA 2
8. Veetraj Enterprises RAJASTHAN 3

9. Mukund Teleservices RAJASTHAN 3
10. D T Telelink RAJASTHAN 3
11. Matrashree Enterprises RAJASTHAN 3
12. Master Computers MADHYA PRADESH 3
13. Aerotech MADHYA PRADESH 4
14. Nilavu Computers TAMIL NADU 4
15. Apurva International MADHYA PRADESH 5
16. DataMax HIMACHAL PRADESH 6
17. Malti Telecom U P EAST 6
18. Unitel PUNJAB 7
19. SS Ventures CHANDIGHAR 7
20. Sri Balaji Teleservices ANDHRA PRADESH 8
21. DataMax HARYANA 8
22. DataMax PUNJAB 8
23. A3 Financial GUJRAT 9
24. Agarwal Agencies ANDHRA PRADESH 9
25. Anand Enterprises BIHAR 9
26. Marda Enterprises REST OF WEST BENGAL 10
27. BK Associates REST OF WEST BENGAL 11
28. Marda Mktg Svcs KOLKATTA 11
29. S R Associates KOLKATTA 11
30. Adcom Display KOLKATTA 11
31. S.K Enterprises ORISSA 11
32. Inductus BIHAR 11
33. Aqua Regia U P WEST 15
34. Sanskriti Teleservices RAJASTHAN 15
35. UB Resource GUJRAT 18
36. Adis Marketing GUJRAT 19
37. People to People KARNATAKA 25
38. Fusol Advisory ANDHRA PRADESH 25
39. Aqua Regia DELHI 26
 The following are the components of the PBPC sheet:
1. Calculation Reference Sheet:
The Calculation Reference Sheet states how revenue and payout figures
are drawn based on the products sold or service rendered.
2. R – Factor Score: (Sales Figures)
 Acquisition
• Prepaid Activations Target
• Prepaid Activations
• Prepaid Activations % Against Target
• Postpaid Activations Target

• Postpaid Activations
• Postpaid Activations % Against Target
 Revenue
• Revenue Target
• Prepaid RCV/EVD Sales
• Tata Sky RCV
• Total of RCV Sales
• ABU RCV Sales
• Bill Collections
• Handset Sales
• Calling Cards
• Starter Kits
• Total of H/S, Starter Kit, Calling Cards
• Tata Sky Other Accessories
• Total Revenue
• Total Revenue % Achieved Against target
 Customer Service
• Cancellation on walk-in
• Retention Count
• Retention % Achieved
• Retention % Achieved Against target
• Valid Service Request
3. R – Factor Payout: (Payment against sales)
 Activations
• Prepaid Activations Payout
• Postpaid Activations Payout
 Recharge Voucher Sales (RCV)
• Prepaid & Tata Sky RCV Sales Payout
• ABU RCV Sales Payout
• Bill Collections Commission
• H/S, Starter Kit Calling Cards
• Tata Sky Other Accessories
• Total revenue Payout
 Customer Service
• Retention Count
• Valid SR's

 Total R Factor Payout
4. K – Factor Score:
 Business Compliance
• Vouchering
• CAF Compliance
 Customer Management
• Postpaid FTR's
• Prepaid FTR's
• KET Score
• LPMS
 Total K Score
5. Final Payout:
 Final Payout (R*K)
• R factor Payout
• K Factor Score
Step 2: Sorting data according to the requirement
A raw data is like a dump of all details related to certain product
specifications. It is very vast. Hence the next step in the process of Retail
Analysis is to sort the data and make it convenient to be used. Sorting refers to
choosing the figures and relevant data required to make an analysis from the
PBPC dump. When the data is sorted, the subject of analysis can be focused
upon. This makes the whole analysis systematic, manageable, presentable and,
easy to work on, understand and interpret.
For e.g. If the analysis of the sales for a certain period of time has to be
done, one can pick just the sales figures from the PBPC raw data. Sort it as
required and then work on it.

Sorting separates the sales figures from all the other data, thus making it
easy to do the analysis and make graphs. The analysis can be done faster and
accurately if the required data is sorted and made available at hand. One does
not have to search for the figures every time because once the sorting is done
the required figures are made available at one single destination for easy
reference. Sorting makes the information crisp and specific.
The sorting of data is done as follows:
a. Narrowing the data :
The subject of analysis is defined in the first step, thereafter the data
required for the analysis is picked from the raw data.
b. Categorizing and classifying the data:
For easy reference, comparison and analysis the data is categorized
based on the subject of analysis.
For instance, if the analysis has to be done for each region in which
TTSL stores operate, to know which region is performing well, then region
wise categorization is done. Similarly, if vendor wise analysis is required
then the vendors are classified and categorized on the desired basis. The
vendor wise classification can be done based on the region of operation or
location, number of store under the vendor, ownership (whether COCO or
Franchisee) etc.
Categorization is also important for just and fair comparison. Since
the subject of comparison may be dependent on many factors, which in
most cases are not uniform. For instance, the performance data of a
Vendor with 25 stores cannot be compared with the performance data of a
vendor with only 5 stores. The performance or sales figure of the former is
obvious to be more than that of the latter.
Similarly, when the analysis is done to set sales targets, the targets
cannot be same for all the Vendors. Reason being that, these vendors
operate in different regions. Some of these regions might be densely
populated while the population at other regions might be scarce. Due to
this, the foot fall at each store differs. And this affects the sales.
Here the subject of classification is the vendor and the dependent
factor is the region of location.
Step 3: Presenting data in graphical form

Any kind of analysis can be easily done if it is presented in a graphical
format. Graphs, charts and diagrams act as visual aid for analysis. It is much
easier to derive conclusions and determine problem areas through diagrams than
having to brush through a whole data of figures and numbers.
Different colours and shapes are used to make the graphs attractive and
easy to understand. Graphs are the best form of presentation. Especially, when
the results of the analysis have to be shared with the concerned bodies.
Graphs are prepared using CHART WIZARD OR PIVOT TABLE AND
CHART REPORT in Microsoft Excel or Microsoft Power Point Presentation.
Step 4: Analyzing the Data and Graph results
Once the graphs and diagrams are derived the next step is to draw a
detailed analysis of the data. This is the most crucial step in the project. Hence
for a proper analysis, a thorough study of the data and graphs is essential.
Through proper analysis the problem areas are found, and answers to the
questions like ‘Why?’ and ‘How?’ are derived. Once the problem areas are noted
down the causes and solutions are derived and noted down. Causes are found
by talking to the Vendors in business or the Retail team at the Regional TTSL
Offices.
1. Incase of unsatisfactory performance shown by a vendor, the vendor or
the regional TTSL retail manager is spoken to and the causes of the dip in
performance level is found out.
2. Similarly, vendors who perform well are also spoken to. They are asked
about the measures taken to increase the performance level.
3. These measures are then shared with the low performing vendors and
they are helped to perform better.
Step 5: Drafting and Presenting the Analysis Report
The last step in the process of report should be crisp, to the point and
easy to understand. The report should be supported by the graphs and all other
findings for reference and evidence.

SECTION 4
FINDINGS AND INTERPRETATIONS
SALES TREND
Sales Trend, is the analysis of the sales and sales target achievement
level of all the vendors of TTSL for the Months of January, February and March
2009.
The Sales Trend helps to know the performance level of each Vendor. It
helps to know which of the vendors are successful in achieving the target set,

and which are not. Accordingly, improvement measures are taken to help the
poor performers improve their sales. The sales trend helps to spot the week
areas of business and also the strong ones.
It is one of the most important part of Retail Analysis as selling is the most
crucial part of retailing. And, good sales lead to good profits.
The sales performance of vendors was analyzed in the following way:
 The PBPCs of Jan, Feb and Mar 2009 were studied and the following data was
picked as required for each month:
1. Prepaid sales (in units)
2. Postpaid sales (in units)
3. Sales Target (in units)
 A vendor wise classification was done based on the number of stores under each
vendor. The vendors were divided in 3 categories for better comparison and just
analysis
1. Low Level Vendors : 1 – 5 Stores
2. Moderate Level Vendors : 6 – 14 Stores
3. High Level Vendors : 15 – 26 Stores
 A total sales figure for each vendor was derived at. This was done in 2 steps:
1. A sum of the sales, of all the stores under each vendor was
derived at using Pivot Table tool to sum up the data.
2. A sum operation was performed on the Prepaid and Postpaid
sales to derive the total sales in Microsoft Excel.
 The following Bar Graphs were derived from the sales data by using Microsoft
Excel.
I. Low Level Vendors

II. Moderate Level Vendors

III. High Level Vendors
ANALYSIS AND CONCLUSIONS

 LOWS
o Adis Marketing - GJ
o UB Resources - GJ
o DataMax – HA
Have showed consistently poor performance in all three months.
Though the targets set for these vendors were revised and made low in
March, it did not help them achieve the target as their sales dipped further low in
that month.
 PERFORMERS
o S R Associates – KO
o Sanskriti Telelink – RJ
o Data max - HP
o Sri Balaji Teleservices - AP
o Agarwal Agencies - AP
Have performed well above the mark.
Though, in January the target achievement level was moderate, in February and
March all the above agencies kept up the achievement level high above 100%.
 EXCELLENCE
o Marda Marketing Services – KO
Has shown excellent performance in all three months, mainly due to high Prepaid
activations.
Though the Postpaid activation achievement has been below the 50%
mark in all 3 months, the prepaid activation achievement has made up for it by
maintaining a level of above 175% in all three months.
The only concern area is, in January the target was set low, due to which the
achievement level shot up to 398%, which is almost 4 times the target set.

SALES AND PAYOUT TREND
Payout refers to the wages paid to the Vendors for the retail operation
carried out by them. The payout is calculated based on different parameters
drawn in the Key Result Areas, which is as follows:
Key Result Areas for manpower agency
TATA Teleservices are keen to partner with such an agency that is willing to contribute
to the performance of the day to day business of TTSL. Based on the performance the
partnered agency can enjoy financial benefits of the same. TTSL has set few key
performance indicators on basis of which the remuneration will be done.
Key
Sr. Key Result Measurement
Performance Period Payment
No Area criterion
Indicator
Post-paid % achievement
acquisition target against target Monthly Rs.325 per acquisition
A Acquisition
Pre-paid % achievement
acquisition target against target Monthly Rs.100 per acquisition
3% of the revenue for CMBU
& Tata Sky RCVs; 1% for
ABU RCVs; 0.5% for bill
% achievement
B Revenues Revenue Monthly collection, 6% for H/S,
against target
starter-kits & Calling card
Tata Sky and other
accessories @ 10%
% achievement
Customer
C Retention against target Monthly Rs.40 per retention
service
Valid SRs raised Rs.6 per SR
Achievement against target Bonus / Penalty
> 140% 150%
125-140% 130%
110-124.9% 120%
100-109.9% 105%
90-99.9% 95%
80-89.9% 85%
<80% 75%
Key definitions:

c. Acquisition: A postpaid or prepaid connection sold wherein the
documentation as per norms is complete
d. Revenue: This shall be measured as value of item sold (invoice value) net
of taxes and duties. In the case of bill collection, this shall be the total
value of bill collected net of taxes and duties.
e. Bill collection commission shall be payable on the value as measured at
the TTSL Bill Receipt System and as reconciled by TTSL.
f. Retention is measured as % of cancellation requests. Retention payout
shall be made on those connections where the customer remains on
network for a minimum period of 3 months post the cancellation request
and generates a minimum ARPU of Rs.150.
K Factors
In addition, there will be K Factors which will reward / penalize store level performance
payouts. The K factor payout table is as follows:
Business compliance K factors will penalize the agency for not meeting the desired
norms set.
Business Compliance
K factors Customer management K factors with rewards and Penalty
CAF Compliance & FTR - FTR – KET -
vouchering Postpaid Prepaid Score LPMS
Target % Payout Target % Reward/Penalty
98-100 100% >95 >97 >95 >50 125%
95-97 98% 85-95 95-97 85-95 40-50 110%
93-94 80% 80-84 90-94 80-84 35-39 100%
90-92 70% 70-79 85-89 75-79 30-34 85%
Less than 90 0% 60-69 80-84 70-74 25-29 70%
< 60 < 80 <70 <25 0%
Note:
1. The targets are actual targets. Thus for FTR-postpaid a FTR score of 95%
2. LPMS conversion will be considered for the leads allocated through call centre only.
Store level updates and closure though mandatory will not be considered. A minimum of
90% closure is expected in LPMS. Else even if the conversion is high the K factor for
LPMS will be considered as 0.7. For conversions less than 25% the K factor will be 0 as
highlighted above.
3. KET: A minimum of 95% employees are supposed to take the KET test as conducted
by the company.
Illustration:
A store has a postpaid acquisition target of 25 and pre-paid acquisition target of 75.
Revenue target of Rs.3 lakhs
Retention target of 60%

Delivery for the month
Post paid achievement 30 nos @ 120% of the target
Pre-paid achievement of 85 nos @ 113% of the target
Revenue delivery of Rs.3.3 lakhs – RCV of Rs.1 lakhs and Rs.1.75 lakhs of H/S +
Starter Kits + calling card + 0.25 L of accessories
Bill collections of Rs.3 lakhs
Retention score: 20 customers @ 60%
No of valid SRs raised: 50
Remuneration: R
Post – Paid 30* 325* 1.2 = Rs.11700
Pre-paid 85 * 100* 1.2 = Rs.10200
Revenue Com- 1 L * 0.03+ 1.75 L * 0.06 + 0.25 L* 0.15 = Rs.17250
Bill collection Commission 3 L * 0.005 = Rs.1500
Retention commission 20 * 40*1.05 = Rs.840
SRs commission 50* 6 = Rs.300
Total commission = Rs.41,790
K Factor calculation:
The remuneration, R calculated as per the KRAs will be multiplied by the K factor to
arrive at the final payout.
For e.g.: Remuneration R for managing a store is Rs.44640 as per the above
calculation.
The K factor delivery is as follows:
Vouchering: 99% K1 score = 1
CAF compliance: 97% K2 score = 0.98
FTR postpaid: 85% K3 score = 1.1
FTR pre-paid: 90% K4 score = 1
KET score: 90% K5 score = 1.1
LPMS conversion @ 36% K6 score = 1
K score
Vouchering = 1
CAF compliance = 0.98
FTR Postpaid = 1.1
FTR Prepaid = 1
KET score = 1.1
LPMS conversion = 1
K score = 1*0.98*1.1*1*1.1*1
= 1.18

Final Payout = R*K
Final Payout = R*K
= 41790*1.18
= Rs.49, 312
The analysis of ‘Sales and Payout Trend’ is done to determine the effect of the
paypout over the sales. The payout system should be able to motivate the
vendors into selling better and also improve customer service. Through ‘Sales
and Payout Trend’ faulty payment strategy can be corrected. Or it might lead to
excess outflow of funds from the company to the vendors in vain.
The ‘Sales and Payout Trend’ of vendors was analyzed in the following way:
 The PBPCs of Jan, Feb and Mar 2009 were studied and the following data was
picked as required for each month:
1. Prepaid sales (in units)
2. Postpaid sales (in units)
3. Final Payout (in Rs.)
 A vendor wise classification was done based on the number of stores under each
vendor. The vendors were divided in 3 categories for better comparison and just
analysis
1. Low Level Vendors : 1 – 5 Stores
2. Moderate Level Vendors : 6 – 14 Stores
3. High Level Vendors : 15 – 26 Stores
 A total sales figure for each vendor was derived at. This was done in 2 steps:
1. A sum of the sales, of all the stores under each vendor was
derived at using Pivot Table tool to sum up the data.
2. A sum operation was performed on the Prepaid and Postpaid
sales to derive the total sales in Microsoft Excel.
 The following Bar graphs of the Final Payout were derived, from the data by
using Microsoft Excel
I. Low Level Vendors

I. Moderate Level Vendors

I. High Level Vendors
ANALYSIS

To draw analysis on ‘Sales and Payout Trend’ the Payout trend graphs were
compared with the Total Sales graphs of the corresponding vendors, exhibited
earlier. The following problem areas were detected and their causes were found.
 1 STORE:
• Namarathi (KA), Sales achievement level is more than the target set in the
month of March than in the month of Jan. Yet the payout in Jan is much
more than in Mar.
CAUSE: This is because its Postpaid activation is 120% in Jan and in Mar
its only 62%. Similarly, Total RCV sales is Rs.2, 23,981 in Jan and only
Rs.97,347 in Mar.
• SLV (KA), sales are lower in Mar than in Jan but the payout for Mar is
more than Jan.
CAUSE: Mainly because they have done well in Customer Service.
Revenue in Mar is Rs.126,340 and in Jan it is Rs.101,026
 2 STORES:
• Kabson (KA), Kote Marketing (KA) and Mobile Junction (KA) have high
payouts in Mar, even though their productivity is low for that month. This
because of their good K Factor performance; mainly in Customer
Management – KET Scores. Similarly, in Feb their payout is low, in spite
of good productivity.
CAUSE: Main reason being, their low performance in K Factor.
 3 STORES:
• D T Telelink (RJ) and Matrashree Enterprises (RJ), payout is
proportionately lower than the Productivity trend in Feb as compared to
the other 2 months.
CAUSE: The performance in K Factor is poor. Their achieved score in
LPMS - customer management is only 39% each.
 6 STORES:
• For DataMax (HP), the sales target is achieved for Feb and Mar and not
for Jan, yet the payout in Jan is more than payout in Feb and Mar.
CAUSE: Because it has exceeded its revenue target only in Jan. Here
though the K Factor score is more in Mar (2.44) than in Jan (2.39), the R
Factor Payout shows an otherwise trend. Hence the payout is more in
Mar.
 7 STORES:

• SS Ventures (CG), extremely high Revenue target set for Feb though the
target in Jan is not achieved.
CAUSE: The target for current month is set considering the Revenue
earned in the last 3 months.
 8 STORES:
• Datamax (HA) sales target set for Mar is higher than that set for Feb
though the target in Feb is not achieved.
CAUSE: The target for current month is set considering the Sales of the
last 3 months.
 11 STORES:
• Marda Mktg (KO): Payout is high and not in proportion to the sales,
especially in Jan.
CAUSE: Very low sales targets set in all three months.
• S R Associates (KO): In spite of low productivity in Mar the payout is high.
CAUSE: Sales targets are low in Feb and Mar.
 25 STORES:
• P2P (KA): The Productivity for Jan is better than that of Mar, yet the
Payout is more in Mar
CAUSE: The Factor score is 1.48 in Mar and 0.93 in Jan.
NOTE: K Factor Score is good in Mar because it has done well in
Business compliance – CAF Compliance
CONCLUSION

Along with ‘Sales Trend’ and the ‘Sales and Payout Trend’, the following subjects
were also undertaken for analysis:
1. Prepaid Sales v/s Postpaid trend
2. Revenue Trend
3. Productivity Trend
(Refer to the CD to view the graphs and analysis related to the same)
A report was prepared in Power Point Presentation and presented to the Sr. Vice
President of TTSL Mr. Sanjeev Ghanate, The Branded Retail head and the
Branded Retail Team.
The analysis report was also sent to all the circles marking their performance
with the improvement and correction measures.
RECOMMENDATIONS

According to the research study and analysis report, the following are the best
recommendations for TTSL:
1. All the retail vendors should be treated like company employees and not
as business associates in contract. The job of selling and retailing is very
vibrant and it needs a lot of motivation. Hence, the company should
maintain their HR practices of motivation, grievance handling etc with the
vendors in the same way that they do for their employees.
2. The discussion of the analysis findings or report should not be the only
purpose of contact and meeting with the vendors. There should be
periodic meetings to hear out the vendors’ views and their report of the
retail operations. This will keep the BRBU section updated and informed of
the happenings at the retail end and help them take corrective measures
or retail improvement measures if needed.
3. There should be a periodic training session based on retailing, held for the
vendors. Retailing is a deep subject directly related to sales. There are
many factors of retailing that directly affect the sales. A vendor must have
the knowledge of these factors and should be educated on this front.
There is no specific qualification required to be a retail vendor and
business is purely contractual, efforts must be made to ensure that the
vendors are educated with a few essential subjects of retailing.