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A project report on indian mobile market

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A project report on indian mobile market

A project report on indian mobile market

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  • Mobile marketing is indeed becoming very important. In my experience, the most effective channel is to have your own mobile app. You can use one of the several do it yourself type mobile app builders to build your app. Or you can use a semi-automated service like , www.TheBestAppBuilder.com which gives you a custom app at a great price. You can always hire a programmer to build one for you but that would be also the most expensive option.
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  • 1. EXECUTIVE SUMMARYTelecommunication is one of the most vital of all infrastructure services today .It is notonly essential for the growth and development of every other sector of the economy withthe interest of the world. Indian mobile industry is growing at a rate of 82.2%. The allGSM subscriber base continued to grow aggressively in, achieving a subscriber base of115.3 million in February 2007 up from 110.5 million in January 2007.The cellularindustry all over the world has been witnessing very high growth rates in subscriber basein recent years.Brand equity is sustainable value added to brand name in the market and in the customersmind. Measuring brand equity is important because understanding why consumers choosea particular brand and the extent to which consumers are loyal to brand is crucial tosuccessful branding strategies. This market research of brand equity was under taken toanalyze the brand equity of various service providers in BangaloreIn this study researcher has attempted to analyze the brand value of various mobileservice providers in Karnataka by collecting data from various customers. Valuableinformation about the loyalty of the customer towards various mobile service providers,user perception with respect to the brand, advertisement recall, perceived quality ofvarious brands and also the highest brand which has got the brand equity were collectedand analyzedThe data’s were collected from 150 customers of six brands in Karnataka and used assamples of the study. Data’s been collected through personal discussion and structuredquestionnaireAs per the study, it is hypothetically tested and found that the customer segment does notinfluence on the choice of service providers. As per the responses analyzed, the attributesof the product is the major factor leads to the choice of mobile service provider. i
  • 2. 52 % of the respondent says AIRTEL is the leading and number one brand, 29%saysHUTCH and 19% said BSNL is the leading brand in Karnataka. The factors considered inranking the brand by customers are network, offers after sales and customer care, valueadded services and call costs.AIRTEL, HUTCH and BSNL are the brands which is having more brand loyalty.AIRTEL is the leading brand which shows a high recollection of advertisement. Out of150 respondents 74 respondents could recollect the AIRTEL advertisement .49 isHUTCH, 19 is TATA INDICOM, 2, 2 and 4 is respectively for SPICE, BSNL andRELIANCE. TABLE OF CONTENT ii
  • 3. CHAPTER.NO. PARTICULARS PAGE NOCHAPTER 1: INTRODUCTION 1 1.1 INTRODUCTION TO THE RESEARCH TOPIC 2CHAPTER 2: RESEARCH DESIGN 3 2.1 REVIEW OF THE LITERATURE 4 2.2 STATEMENT OF THE PROBLEM 10 2.3 RESEARCH OBJECTIVES 11 2.4 TYPE OF RESEARCH 11 2.5 RESEARCH PURPOSE 11 2.6 SCOPE OF THE STUDY 12 2.7 DATA COLLECTION DESIGN 12 2.8 HYPOTHESIS 12 2.9 SAMPLING TECHNIQUE 13 2.10 SAMPLING SIZE 14 2.11 SAMPLING DESIGN 14 2.12 INSTRUMENTATION TECHNIQUE 14 2.13 METHOD OF DATA COLLECTION 15 2.14 LIMITATION OF THE STUDY 16CHAPTER 3:PROFILE OF THE INDUSTRIES 17 3.1 INDIAN MOBILE MARKET 17 3.2 CELLULAR MARKET STRUCTURE 21 3.3 GSM MARKET OVERVIEW 27 3.4 MILE STONES 29 3.5 SWOT ANALYSIS OF MOBILE INDUSTRY 32 iii
  • 4. CHAPTER 4: ANALYSIS AND INTERPRETATION OF DATA 34CHAPTER 5: SUMMARY OF FINDINGS CONCLUSIONS AND RECOMMENDATION 65 5.1 FINDINGS 66 5.2 SUGGESTIONS 70 5.3 CONCLUSION 73 5.4 BIBLIOGRAPHY 75 5.5 ANNEXURE 77 iv
  • 5. LIST OF TABLE STABLE DETAILS PAGE NO NO. 4A CHI SQUARE TEST TABLE 35 4B CALCULATION OF CHI SQUARE TEST 36 4:1 AGE OF RESPONDENTS 38 4:2 OCCUPATION OF THE RESPONDENTS 39 4:3 BRAND USAGE 40 4:4 TYPE OF CONNECTION 41 4:5 TIME OF USAGE 42 4:6 BRAND LOYALTY-SPICE 43 4:7 BRAND LOYALTY-HUTCH 44 4:8 BRAND LOYALTY-AIRTEL 45 4:9 BRAND LOYALTY-BSNL 46 4:10 BRAND LOYALTY-TATA INDICOM 47 4:11 BRAND LOYALTY-RELIANCE 48 4:12 BRAND SWITCHING BY CUSTOMERS 49 4:13 BRAND SWITCHING 50 4:14 CUSTOMERS PREFERENSES 51 4:15 TOP BRANDS 52 4:16 ADVERTISEMENT RECALL 53 4:17 RECOLLECTION OF ADVERTISEMENT 54 4:18 BRAND OPINION BY SPICE CUSTOMERS 55 4:19 BRAND OPINION BY HUTCHCUSTOMERS 56 4:20 BRAND OPINION BY AIRTEL CUSTOMERS 57 4:21 BRAND OPINION BY BSNL CUSTOMERS 58 4:22 BRAND OPINION BY TATA INDICOM CUSTOMERS 59 4:23 BRAND OPINION BY RELIANCE CUSTOMERS 60 4:24 BRAND USAGE- STUDENTS 61 4:25 BRAND USAGE BUSINESS CLASS 62 4:26 BRAND USAGE EMPLOYEES 63 4:27 BRAND UASGE COMPARISON 64 LIST OF CHARTS v
  • 6. CHART DETAILS PAGE NO NO 3:1 MOBILE INDUSTRY REVENUE CHART 19 3:2 TYPE OF SUBSCRIBERS 20 3:3 PENETRATION OF MOBILE TELEPHONEY IN 23 INDIA 3:4 GROWTH OF MOBILE SUBSCRIBER 24 3:5 MOBILE TELE DENSITY 25 3:6 GSM VS CDMA 25 3:7 MOBILE PHONES VS FIXED LINES 26 3:8 FUTURE OF MOBILE INDUSTRY 27 3:9 TELE DENSITY FUTURE 27 3:10 COMPARISSON OF MOBILE TARRIFF 28 3:11 COMPARISON OF VAS REVENUE 31 4:1 AGE OF RESPONDENTS 38 4:2 OCCUPATION OF THE RESPONDENTS 39 4:3 BRAND USAGE 40 4:4 TYPE OF CONNECTION 41 4:5 TIME OF USAGE 42 4:6 BRAND LOYALTY-SPICE 43 4:7 BRAND LOYALTY-HUTCH 44 4:8 BRAND LOYALTY-AIRTEL 45 4:9 BRAND LOYALTY-BSNL 46 4:10 BRAND LOYALTY-TATA INDICOM 47 4:11 BRAND LOYALTY-RELIANCE 48 4:12 BRAND SWITCHING BY CUSTOMERS 49 4:13 BRAND SWITCHING 50 4:14 CUSTOMERS PREFERENSES 51 4:15 TOP BRANDS 52 4:16 ADVERTISEMENT RECALL 53 4:17 RECOLLECTION OF ADVERTISEMENT 54 4:18 BRAND OPINION BY SPICE CUSTOMERS 55 4:19 BRAND OPINION BY HUTCHCUSTOMERS 56 4:20 BRAND OPINION BY AIRTEL CUSTOMERS 57 4:21 BRAND OPINION BY BSNL CUSTOMERS 58 4:22 BRAND OPINION BY TATA INDICOM CUSTOMERS 59 4:23 BRAND OPINION BY RELIANCE CUSTOMERS 60 4:24 BRAND USAGE- STUDENTS 61 4:25 BRAND USAGE BUSINESS CLASS 62 4:26 BRAND USAGE EMPLOYEES 63 64 vi
  • 7. CHAPTER 1RESEARCH INTRODUCTION
  • 8. RESEARCH INTRODUCTIONIn the present Indian scenario the booming industry in the service sector istelecommunication .the expansion of the telecom industry in India has been fueled bymassive growth in mobile phone users which had reached to a level of 53.38 million usersin May 05. There are many service providers competing each other to hold the highestmarket share in this particular domain. Henceforth the very purpose of this research is toidentify the brands which have the high brand equity in KarnatakaThis research is organized to analyze the Brand equity of cellular service providers inKarnataka and to suggest various strategies to improve the brand image of the variousbrands. Analysis helped to revealed the present market potential and trend in the marketThe method developed during the study is unique for various companies. Companies canrepeat the study in the future using the same statistical methods developed by theresearcher Recommendations and suggestions consist of interpretation of meaningfulstatistical information and views of the researcher. Business Research is a continuousprocess; it does not end with one study because business environment is changingexponentiallyBrand equity is sustainable value added to brand name in the market and in the customersmind measuring brand equity is important because understanding why consumers choosea particular brand and the extent to which consumers are loyal to brand is crucial tosuccessful branding strategies. This market research of brand equity was under taken toanalyze the brand equity of various service providers in BangaloreI am glad to be a part of research as it helps to enhance my own professional knowledgeand expertise. Globalization had made the world a smaller space and being a part of thiscompetitive world we are exploiting new places, new markets, and new business ventures,which have definitely changed the concept of being identified as the developing country.Being a part of this wider objective makes me the research interesting and enjoyable. Ihope the companies will benefit from my studies and findings 2
  • 9. CHAPTER 2RESEARCH DESIGN 3
  • 10. RESEARCH DESIGNResearch is a systematic and logical study of an issue or a problem to arrive at accurateresults, research the job of collecting, recording and analyzing relevant data to arrive atdecisions. The present study is systematic, objective and exhaustive search for studies ofthe facts Relevant to a problem in the field of marketing.The search for the facts may be through either  Unscientific method  Scientific methodUnscientific method consists of imaginations, blind belief or impression rather than thefacts. Scientific method is the systematic approach to seek facts. It is objective, preciseand arrives at conclusion on the basis of certain evidences. Hence the research for thefacts should be made by scientific method to arrive at accurate results. The presentresearch study is selected to study the influencing factors for buying behaviors.2:1 LITERATURE REVIEWWhat is Brand Equity?The value of a brand. From a consumer perspective, brand equity is based on consumerattitudes about positive brand attributes and favorable consequences of brand useThere are many different definitions of brand equity, but they do have several factors incommon:Monetary Value. The amount of additional income expected from a branded productover and above what might be expected from an identical, but unbranded product. Forexample, grocery stores frequently sell unbranded versions of name brand products. Thebranded and unbranded products are produced by the same companies, but they carry a 4
  • 11. generic brand or store brand label like Kroger’s or Albertson’s. Store brands sell forsignificantly less than their name brand counterparts, even when the contents areidentical. This price differential is the monetary value of the brand name.Intangible. The intangible value associated with a product that can not be accounted forby price or features. Nike has created many intangible benefits for their athletic productsby associating them with star athletes. Children and adults want to wear Nike’s productsto feel some association with these star athletes (“be like Mike” - for Michael Jordan). Itis not the physical features that drive demand for their products, but the marketing imagethat has been created. Buyers are willing to pay extremely high price premiums overlesser known brands which may offer the same, or better, product quality and features.Perceived Quality. The overall perceptions of quality and image attributed to a product,independent of its physical features. Mercedes and BMW have established their brandnames as synonymous with high-quality, luxurious automobiles. Years of marketing,image building, brand nurturing and quality manufacturing has lead consumers to assumea high level of quality in everything they produce. Consumers are likely to perceiveMercedes and BMW as providing superior quality to other brand name automobiles, evenwhen such a perception is unwarranted.The overall description of brand equity incorporates the ability to provide added value tocompany’s products and services. This added value can be used to company’s advantageto charge price premiums, lower marketing costs and offer greater opportunities forcustomer purchase. A badly mismanaged brand can actually have negative brand equity,meaning that potential customers have such low perceptions of the brand that theyprescribe less value to the product than they would if they objectively assessed all itsattributes/features. One of the best examples of brand equity is in the soft drink industry.Without a brand name and all of the marketing dollars that have gone into it, Coca-Colawould be nothing more than flavored water. Due to the company’s long-term marketing 5
  • 12. efforts and protection, enhancement and nurturing of their brand name, Coke is one of themost recognizable brands in the world. However, even this marketing giant has troublecapitalizing on its own brand equity when handled improperly (e.g. New Coke). Ifsomeone suddenly took their brand name and brand equity away from them, Coke wouldlose hundreds of millions, if not billions, of dollars. This includes lost sales, lostmarketing dollars and lost promotions, additional marketing costs to promote a newbrand, and significantly lower awareness and trial rates for their new brand.How to Use Brand Equity to the companies Advantage?Brand equity can provide strategic advantages to company in many ways: • Allow company to charge a price premium compared to competitors with less brand equity. • Strong brand names simplify the decision process for low-cost and nonessential products. • Brand name can give comfort to buyers unsure of their decision by reducing their perceived risk. • Maintain higher awareness of products. • Use as leverage when introducing new products. • Often interpreted as an indicator of quality. • High brand equity makes sure products are included in most consumers consideration set. • Brand can be linked to a quality image that buyers want to be associated with. • Offer a strong defense against new products and new competitors. • Can lead to higher rates of product trial and repeat purchasing due to buyers’ awareness of brand, approval of its image/reputation and trust in its quality. 6
  • 13. Brand names are company assets that must be invested in, protected and nurtured tomaximize their long-term value to company. Brands have many of the same implicationsas capital assets (like equipment and plant purchases) on a company’s bottom line,including the ability to be bought and sold and the ability to provide strategic advantages.How to Measure Brand Equity?Most evaluations of brand equity involve utility estimation. Specifically, an attempt tomeasure the value (utility) of a products features and price level and also measure theoverall utility of a product when including brand name. The difference between totalutility and the utility of the product features is the value of the brand. In other situations,the utility of the brand is measured directly and added to the feature utilities to produce anoverall utility for the product.Besides utilities, contributing factors such as current awareness levels of each brand,overall perceptions of each brand, and brands currently used should be measured. It isalso useful to obtain estimates of marketing, advertising and promotional expenses for themajor brands in the market. Together with utility estimates, this information provides amore complete picture of the relative value of each brand and allows understanding themajor forces driving brand equity: product features, price, market awareness, marketperceptions and expenditures to build and support those brands.Use of Brand Equity DataMarket simulations are one means of putting brand equity information to use. Usingestimated utilities, we can simulate market preferences for our products and those of thecompetition. Various scenarios can be created which involve the introduction of newproducts or modifications to existing products to determine the effects of these changeson market preferences. This information can be used to test: 7
  • 14. • Extension of product lines with and without the use of an existing brand name. • Introduction of new products with and without brand name affiliation • Estimate the monetary value of each brand. Using the conjoint utilities, you calculate the price differential that your brand could charge versus your competitors if all companies offered the same features. • Determine the effects of improving brand equity or reducing your investment in a high-equity brand. • Estimate the impact of moving into new geographic areas where your brand name is unknown or has negative perceptions. • Estimate the effects of co-branding with a company who has more or less brand equity than does your brand. • Track brand equity over time for your company and your competitors. Stop slides in your own brand equity before it can severely impact your company and adjust your strategy to counteract changes in competitors’ brand equity. • Measure effectiveness of your advertising and marketing campaigns to build brand imageDoes Brand Equity Vary Across Customers?Brand equity does vary across individuals, as we would expect, and we can measure thesedifferences. The data collected in brand equity studies can also be used to segment themarket into various groups based on the benefits they seek. Using the utility estimatesfrom the conjoint models, we can identify benefit segments in your market. Thesesegments can then be compared to each other to highlight differences in brand equitybetween various types of product users, different levels of price-sensitivity, differentlevels of feature importance. Demographic and psychographic profiles of these benefitsegments can ultimately be used to target specific advertising messages to groups ofpotential purchasers based on the desires of those groups. Coupons might be sent to thosein the most price-sensitive segments, while detailed product literature might be sent tothose who place more value on specific features of your products. 8
  • 15. Brand equity refers to the inherent in a well-known brand name from customer’sperspective. Brand equity is a added value bestowed on the product by the brand name .itcan be conceptualized from three different perceptiveAt the firm level it is the incremental cash flow arising from the use of the brand name.At the trade level, it is the leverage from the use of brand name.At the consumer level, it occurs when the customer is familiar with the brand and holdssome favorable, strong and unique association in the memoryconsumer based brand equity arises from consumer being more likely to be aware of somebrands in addition to possibly preferring some brands over others .brand equity can alsobe defined as a set of assets (liabilities) linked to a brand’s name symbol that adds to (orsubtracts from) the value provided by the product/service to a firm and /or to that offirm’s customersThe major associations are, 9
  • 16. Individual determining factors can help increase brand equity or they can influence itnegatively, as happens with products with low perceived quality. Determining factors arealso heavily interrelated, for example, brand perception is an assumed precursor toeffectiveness in other determining factors. A well-known brand encourages the perceptionof high quality (long-term brand survival brings us to conclude that the product must bewell made, just as we would assume for services). Consequently, perceived qualitysignificantly influences brand loyalty. In highly competitive situations, high brand equityrepresents a positive differential that ensures certain stability in a companys productstrategies over time. A brands protective shield allows products to be constantlyreinvented within an environment providing credibility, legitimacy and affection for theproduct - thus helping to reduce risk and uncertainty for the company. Furthermore, thepresence of brands with strong personalities means that benefits (to the purchaser/user aswell) go well beyond the simple values communicated by the brand. These benefits areessentially seen as the simplification of information processing, greater confidence inproduct selection and as brand satisfaction. In highly competitive systems, therefore,demand analysis expressed for a given market becomes essential in order to define thebrand identity to pursue through suitable brand policies aimed at developing solid brandequity.2:2 STATEMENT OF THE PROBLEMBrand equity is sustainable value added to brand name in the market and in the customersmind measuring brand equity is important because understanding why consumers choosea particular brand and the extent to which consumers are loyal to brand is crucial tosuccessful branding strategies. This market research of brand equity was under taken toanalyze the brand equity of various service providers in Bangalore 10
  • 17. 2:3 RESEARCH OBJECTIVES  To identify the customer segment s and its influence on the choice of service providers  To identify the brand loyalty of various service providers brands  To identify the user perception with respect to brand value  Advertisement recall of various brands  To identify the perceived quality of various brands  To identify the major three service providers having more brand equity in Karnataka2:4 TYPE OF RESEARCHMarketing research is the systematic and objective search for and analysis of informationrelevant to the identification and solution of any problem in the field of marketing. Typeof research is the research design and plan, structure and strategy of investigationconcerned so as to obtain the answers to research questions and to control the variance, itis the blue print for the collection, measurement and analysis of data.2:5 RESEARCH PURPOSEThe purpose of this research is to study about the various cellular providers in Karnatakaand to identify their brand equity .the study was descriptive in nature because from thedata various deductions could be made like • To identify the customer segment s and its influence on the choice of service providers • To identify the brand loyalty of various service providers brands • To identify the user perception with respect to brand value • Advertisement recall of various brands • To identify the perceived quality of various brands • To identify the major three service providers having more brand equity in Karnataka 11
  • 18. 2:6 SCOPE OF THE STUDYScope means the areas that are covered. Scope of the study states the areas that areconsidered for research. this research leads to find out the satisfaction level of customersof different service providers ,customers expectation and opinion about the serviceproviders2:7 DATA COLLECTION DESIGNThe data / information collected from the various sources were divided into two parts.They are: a. Primary source b. Secondary sourcePrimary source a. Face to face interview b. QuestionnaireSee annexure for questionnaireSecondary sourceThe secondary data is the information, which already exists. The secondary data wascollected from journals, magazines, books, dissertations, and observation of respondents.The research specific information was less available more emphasis was given on theprimary data.2:8 HYPOTHESISH0a: The customer segment does not influence the brand choice.χ2 ≥ χ 2 (critical)H1a: The customer segment influences the brand choice.χ2 ≥ χ 2 (critical) 12
  • 19. Method of analysisThe data collected through questionnaire and the records available was examined indetail. It was further classified and tabulated with the help of Microsoft Excel for thepurpose of analysis to generalize percentagesStatistical tools χ2 test and Sign test are used for testing the hypothesisThe non-parametric tests used for the testing the hypothesis is “Chi-square test” (m*ntables) and Sign test It is suitable for the test for independence of attributes.Chi-square testχ2 = ∑ [(O-E j) 2 ∕E j]O = Observed number of cases categorized in the categoryE = Expected number of cases in the i th category under Ho2:9 SAMPLING TECHNIQUESampling is a systematic approach of selecting a few elements (a sample) from entirecollection unit (a population) in order to make some reference about the total population.It is a small specimen or a segment of the whole population, representing its generalqualities as for as possible.Non probability samplingIn non-probability sampling, the chance of any particular unit in the population beingselected is unknown, since the randomness is not involved in the selection process. Thethree most frequently used non-probability designs are judgment, convenience and quotasampling. 13
  • 20. Convenient samplingAs its name implies, convenient sampling refers to collection of information from themembers of the population who are conveniently available to the research. Theconvenient sampling method was used for the purpose of data collection.A sample was chosen keeping in mind the objectives of the research and time constraints,convenience-sampling method was usual for choosing this sample size. With the use of aseries of focus survey of One Hundred and fifty (150) samples were chosen.2:10 SAMPLING SIZEOne Hundred and fifty (150) samples were collected from various mobile phone usersfrom Karnataka state were used for the studies.2:11 SAMPLING DESIGNSampling plan:-An integral component of a research design is the sampling plan,specifically it addresses three questions. Whom to survey? (Sampling unit) How many to survey? (Sample size) How to select them? (Sampling procedure)2:12 INSTRUMENTATION TECHNIQUESData was collected with the help of using questionnaires. A questionnaire, which is alsoknown familiarly as an interview schedule with a format containing a list of questionssequentially ordered to obtain information relevant to the objectives of the study, wasdeveloped. Structure and undisguised questionnaire was chosen as the questions could be 14
  • 21. presented with exactly the same order to all the respondents. The reason forstandardization was to ensure that all respondents were replying to the same question.The questionnaire for research included a combination of the following kinds of question  Close-ended  Open-ended  Direct question  Multiple choice The questionnaire proved out to be very helpful in conducting the survey.2:13 METHOD OF DATA COLLECTIONThe data’s were collected by contacting the respondents personally at their respectiveplaces (colleges, homes, outlets etc). And few of the information gathered were throughmailed questionnaires for the places where I weren’t in a stage to travel down to those faraway places. The survey was conducted for 30 days from 8th April to 3rd May 07.2:14 QUESTIONNAIRE DESIGNQuestionnaire was framed by taking expert opinion and the reference of various articlesand research reports2:15 LIMITATION OF THE STUDY 15
  • 22.  The study is time consuming and quite expensive The study was confined to few selected areas which were the sample environment For a survey conducted on subject like this, the sample size should be more than 500, since time was a major constrain, the sample size was restricted to 100 Since the area is vast, the researcher could contact only limited number of respondents When a group of respondents are answering the questions their responses are mutual through cross – reference and this may have caused myopia in data, which deal individual perception The researcher has collected data using the questionnaire and therefore the study is limited to the data collected The results of the study will be applicable only to the towns of similar habitations The consumer buying behavior may change in future due to various factors 16
  • 23. CHAPTER 3INDUSTRY PROFILEINDUSTRY PROFILE 17
  • 24. The cellular industry all over the world has been witnessing very high growth rates insubscriber base in recent years. For developing countries in particular, cellular servicesare becoming a very significant proportion of the overall telecom infrastructure. Themechanics of competition within this market involve complex feedback effects betweenindividual service providers and with their operating environment, and these forces playan important role in governing the growth of this industry.The All India GSM subscriber base continued to grow aggressively in February,achieving a subscriber base of 115.3 million in February 2007, up from 110.5 million inJanuary 2007 - recording an addition of nearly 4.9 million during the month under review.There was an overall growth of 4.4% over the previous month.3:1 The Indian Mobile Telephony MarketIndia is going through a telecom revolution, especially in the wireless telephony segment.The adoption of mobile telephony remains unparallel in scope, as users from diversesegments increasingly choose to exercise the option of personal mobility. The user basehas been adding 3-4 million subscribers per month (on an average) and recently themobile subscriber base crossedThe 100 million mark in April 2006. The success of the market can be gauged from thefact that mobile user base has surpassed the PC user base in India and very soon theIndian market will have more mobile users than TV viewers. India is rapidly movingtowards being an evolved mobility market with no distinction between market incumbentsand challengers.The growing intensity of competition has led to more services for the end user at lowerprices. This has had an effect of stimulating demand and thus increasing the categoryadoption rate. As more users have been added to the subscriber base, it has led to a furtherdownward pressure on operator costs. This has led to further cost benefits to the end user,fuelling further growth in the subscriber base. The growing subscriber base has alsoaugured well for industry revenues, which have risen consistently over the last four 18
  • 25. quarters. However the other side to this growth is that ARPU’s (Average Revenue perUser) have been correspondingly declining quarter on quarter. The average industryARPU has fallen from Rs. 375 for Sept ’05 quarter to Rs. 347 for June 2006 quarter, a fallin ARPU of Rs. 28 per subscriber since Sept ’05 (a decline of 7%)CHART.3:1While the decline in ARPU’ has been accelerated by the recent marketing interventionslike lifetime-free schemes; this has been a consistent trend for some time. It is also afunction of the structure of the Indian mobility market. At 80%, the pre-paid segmentcompletely dominates this Indian mobility market.CHART.3:2Subscribers- Prepaid vs. Postpaid Market Split 19
  • 26. Pre-paid has been a good platform on which the market had grown very fast, as it createsa volume based platform for tariff reduction. Operators have had a strong focus on thepre-paid segment as the cost of customer acquisition is very low compared to the post-paid segment.Another reason for the strong focus on customer acquisition has been to up the networkvaluations, which are largely assessed based on the number of users on it. However theflip side is that, customer retention has become very difficult. Loyalties in the prepaidsegment are low due to the low switching costs and it is not uncommon for user toroutinely change their numbers and service providers. Pre-paid subscribes are also lowusage subscribers who contribute only 25-30% ARPU’s as compared to the post-paidsegment. Source: IMRB ResearchAnother aspect to the mobility market has been the constant decline in the call rates;initially this reduction has been helpful in further increasing the subscriber base andexpanding the Minutes of Use of the existing base.3:2 Cellular Market Structure in India 20
  • 27. As in other countries, in India, the Cellular Mobile Service Providers (CMSPs) arelicensed to operate in designated geographical operating areas. The service areas includefour metro areas and 18 circles categorized as A, B and C. The categorization is based onthe revenue potential with category C circles in the lower end of the scale. For examplethe metros account for 40% of the subscriber population, with Category-A, B and Caccounting for 33%, 23% and 4% respectively.As in most of the other countries, Indian cellular market adopted a duopoly market withlicenses given to two Cellular Mobile Service Providers (CMSPs). The first digitalcellular service started in the metros in 1995. A year later, licenses were awarded to twoCMSPs in each of the 18 circles. The third and fourth operator licenses have been issuedrecently and the license holders are expected to commence their services soon [12].Currently, only 900 MHz of the Global Systems for Mobile (GSM) band has beenallocated for cellular services, though the government is considering the Release of 1800MHz band for cellular operations soon. The CMSPs had to pay an entry fee andsubsequently annual license fee as a percentage of their revenue to the Department ofTelecommunications. The entry and license fees varied according to the service area,highest for metros and lowest for Category-C circles. Some of the CMSPs could notfulfill their licensing obligations and their licenses were revoked leading to a monopolysituation in certain areas. Apart from these charges, each CMSP has to share the revenuewith the long distance operators for carrying inter-service area calls.In profitable metros and circles, the competition is severe and the market is split betweenthe two operators.In a price-cap regulated market, the operators use appropriate pricing strategy to wincustomers and win market share. In highly price-elastic markets, such as in India, as theservice provider reduces the price, the subscriber base increases considerably, and so isthe network traffic. The increased network traffic decreases the performance and thequality of service, inviting customers to switch [3]. Recently being a new entrant in ametro area, the government operator reduced the airtime charges to such an extent that thesubscriber base increased suddenly leading to poor network performance. The 21
  • 28. operator did not have enough network capacity to handle calls leading to blocking ofcalls, with frustrated customers switching over immediately to competitors. The operatorsalso have to resort to non-pricing competition strategies to win customers. In India,CMSPs offer a variety of service plans as a means to attract new customers. Differentservice plans include: pre-paid calling card schemes, discounted airtime rates for eveningand night time calls, discounted roaming charges, no or minimum activation fees, andreduced mobile to mobile long distance call rates. The service providers incur additionaladvertising and infrastructure cost for implementing these plans. Short Message Service(SMS) and Wireless Application Protocol (WAP) service are fast catching up. Forexample, in India, about 500,000 SMS messages are being carried by a service provider inone metro area alone. When the sector moves over to an oligopoly market, the operatorshave to provide improved quality of service and value added services in order to surviveand gain market share. Larger operators who have experience and infrastructure may beable to provide a higher quality of service and other value-added service at a lower price.They also have access to larger project financing for enlarging their networks andservices. For example, a single large operator now has license to operate in 14 serviceareas in the country with the largest footprint to cover most of the areas of the country.Mergers and acquisitions are commonplace as the operators are consolidating theirrevenues to survive in the market places [5].CHART.3:3 22
  • 29. Penetration of mobile telephony in IndiaIndia is one of the fastest growing mobile markets in the world,In April 2006 mobile subscriber base crossed 100 millionCHART.3:4 23
  • 30. Growth of mobile subscriber base has sky-rocketed in last 6yearsCHART.3:5 Exponential increase in mobile tele-density is a strong indicator of growing penetration 24
  • 31. CHART.3:6MORE THAN TWO-THIRD OF MOBILE SUBSCRIPTIONS AREWITH GSM OPERATORS 25
  • 32. CHART.3:7The share of Mobile telephony has been increasing and is considered the Market of the future 26
  • 33. CHART.3:8 India is well poised for a strong growth in the telecom sector in the coming years due to the expanding middle class 27
  • 34. CHART.3:9CHART.3:10 Comparison of mobile tariff 28
  • 35. 3:3 GSM MARKET OVERVIEW • GSM is the fastest growing communications technology of all time. • The billionth GSM user was connected in Q1 2004 - just a dozen years after the commercial launch of the first GSM networks • The second billionth GSM user was connected in Q2 2006 - just two and a half years after the first billion. • Today, GSM accounts for 82% of the global mobile market. • 29% of the global population use GSM technology. • The GSM Association currently has operator members in 218 countries and territories.3:4 MILE STONES1991-National telecom policy formed, telecom equipment sector liberalized 29
  • 36. 1992-value added services like paging and very small aperture terminals(VATs)opened to private sector; foreign investment guidelines initiated1994-giudlines for private sector participation in basic services and cellular services1996-first round cellular services and basic services launched1997-telecom authority of India formed1998-internet service providers’ policy announced, second round of bids completed1999-new telecom policy, migration from license fees to revenue sharing2000-national long distance opened, long distance tariff reduced2001-fourth round of basic service licenses and cellular license finalized2002-international long distance opened up to private sectorVAS- Definition & Market SizeMobile value-added services (VAS) are those services that are not part of the basic voiceoffer and are availed off separately by the end user. They are used as a tool fordifferentiation and allow the mobile operators to develop another stream of revenue.The nature of value added services change over time. A VAS may become commoditizedand becomes so common place and widely used that it no longer provides meaningfuldifferentiation on a relative basis.For example several mobility operators & other stakeholders in the industry no longerconsider P2P SMS as a form of VAS. However for the purpose of estimating the marketsize we have taken P2P into account, though we also feel that P2P SMS is ceasing to be aMeaningful tool for service differentiation.Current market size 30
  • 37. The current market as of November 2006 for mobile VAS in India is estimated at Rs.2850 core.The current VAS market is expected to grow by 60% for the next year and at the end of2007 should be close to Rs 4560 core.Current Growth & Future Potential for Different VASTo understand the reasons behind the current popularity and predict the future potentialfor these services, we have grouped Mobile VAS into three broad heads, based on thenature of the service offering. Entertainment VAS- Entertainment VAS is designed for mass appeal and extensiveusage. These provide entertainment for leisure time usage. An example of these kinds ofservices is Jokes, Bollywood Ring tones & games. These services are currently verypopular and are driving the revenues for the Indian mobile VAS market.Info VAS- These are the services which provide useful information to the end user. Theuser interest comes in from the personal component of the content. E.g. Information onmovie tickets, news, banking account etc. These also include productivity services likemissed call information which brings back lost business opportunity for the operators.They also include user request for information on other product categories like real-estate,education etc.MCommerce VAS (Transactional services) - mCommerce VAS allow the useto conduct a transaction using the mobile phone. These services are in a very nascentphase and are not really available to most users.Examples of this kind of service are buying railway tickets or movie tickets through themobile phone.CHART.3:11 31
  • 38. 32
  • 39. 3:5 SWOT ANALYSIS OF CELLULAR MOBILE INDUSTRYSTRENTHS  Huge wireless subscriber potential  Fastest growing mobile market  Consumers are ready to pay for the cutting edge services  India possesses cheap labor to attract foreign investments  Telecom softwares,telecom professionals ,telecom infrastructure and telecom services are the key players in shaping today’s economy  Revenue sharing strategies are leading to mergers and acquisitions ,helping companies to enter new business opportunities, and generate employment ,boosting the countries economy  Government has started relaxing rules for foreign participants  Lowest tariff rates in the worldWEAKNESSES  Market strongly regulated by government body –the telecom regulatory authority of India (TRAI)  Existence of entry barriers for private companies  High cost of service provision  Low-income country like India cannot afford to replicate  Expensive telecom infrastructureOPPORTUNITIES  India as Asia’s third largest economy, is adding at least one million new mobile phones users every month  Mobile phone user base hitting a saturation point in big cities  Income level in the rural areas rising due to the robust agriculture out put  Share of the rural market in the countries mobile population is ,however, less than 15%  Timely policy and regulatory initiatives taken by the government to encourage foreign players 33
  • 40.  Cellular phone now being used as the common man’s phones  Rapid growth expected in the telecom and related services  Increased availability of brand with has open doors to new schemes making efficient usage, providing value added services and generating profits  Foreign investment in form of equity or technologyTHREATS  High level of risks, uncertainty and cost associated with the cellular sector  Weak intellectual property right protection  Software and digit content piracy  Political instability  Cost of handset also deters a lot of buyers from opting for the service  China’s early liberalization  And the fast growing economy may prove to be hindrance for India  Threats from WLL service providers and also from the satellite phones 34
  • 41. CHAPTER 4ANALYSIS AND INTERPRETATION OF DATAANALYSIS AND INTERPRETATION OF DATA 35
  • 42. OBJECTIVE: To find out whether the customer segments influences the selection of brands. Hypothesis testing Step 1 H0: The customer segment does not influence the brand choice χ2 ≤ χ 2 (critical) H1: The customer segment influences the brand choice χ2 ≥ χ 2 (critical) Step 2 The level of significance is 5% Step 3 Test statistics TABLE: 4:A Chi-square test table BRANDS SPIC AIRTEL HUTCH BSN TATA RELIANC TOTAL E L INDICO E MSEGMENTSTUDENTS 6 25 19 11 3 2 66BUSINESS 2 7 5 7 7 8 36EMPLOYEE 4 10 9 10 6 9 48STOTAL 12 42 33 28 16 19 150 Chi2 = ∑ [(Oij-Eij)2 ∕Eij] O = Observed number of cases categorized in the category E (Expected number of cases in the ith category under Ho) 36
  • 43. With correction factorThe correction factor is being used because some of the values in the chi squire table arebelow 5Chi2 = ∑ [(|Oij-Eij|-.5)2 ∕Eij]TABLE: 4:B ((O-O(Observed E(expected Oij-Eij Oij-Eij E)-.5)SQ ((O-E)-.5)2/frequency frequency) Oij-Eij SQUIRE ROOT (|O-E|)-.5 U E 6 5.28 0.72 0.5184 0.72 0.22 0.0484 0.00916667 25 18.48 6.52 42.5104 6.52 6.02 36.2404 1.96106061 19 14.52 4.48 20.0704 4.48 3.98 15.8404 1.09093664 11 12.32 -1.32 1.7424 1.32 0.82 0.6724 0.05457792 3 7.04 -4.04 16.3216 4.04 3.54 12.5316 1.78005682 2 8.36 -6.36 40.4496 6.36 5.86 34.3396 4.10760766 2 2.88 -0.88 0.7744 0.88 0.38 0.1444 0.05013889 7 10.08 -3.08 9.4864 3.08 2.58 6.6564 0.66035714 5 7.92 -2.92 8.5264 2.92 2.42 5.8564 0.73944444 7 6.72 0.28 0.0784 0.28 -0.22 0.0484 0.00720238 7 3.84 3.16 9.9856 3.16 2.66 7.0756 1.84260417 8 4.56 3.44 11.8336 3.44 2.94 8.6436 1.89552632 4 3.84 0.16 0.0256 0.16 -0.34 0.1156 0.03010417 10 13.44 -3.44 11.8336 3.44 2.94 8.6436 0.643125 9 10.56 -1.56 2.4336 1.56 1.06 1.1236 0.10640152 10 8.96 1.04 1.0816 1.04 0.54 0.2916 0.03254464 6 5.12 0.88 0.7744 0.88 0.38 0.1444 0.02820313 9 6.08 2.92 8.5264 2.92 2.42 5.8564 0.96322368 TOTAL 16.0022818Step 4Degrees of freedom = (r-1). (c-1), here r= number of rows and c = number of columns (3-1). (6-1) = 10 37
  • 44. Critical value = Chi2 (Probability under Ho, Degrees of freedom) Chi2 (.05, 10) = 18.31Step 5Since Chi2 value calculated is less than the critical value, H0 is accepted.Chi2 (calculated) < Chi2 (Critical value) 16.00 < 18.31ConclusionFrom the above test we can conclude that the customer segments does not influence thebrand choice .As per the responses analyzed, the attributes of the product is the majorfactor leads to the choice of mobile service providerAGE OF RESPONDENTSTABLE: 4:1 AGE OF RESPONDENTS 38
  • 45. Age Numbers % 15-25 59 39% 26-35 42 28% 36-45 30 20% 46and above 19 13%CHART: 4:1 AGE OF RESPONDANTS 13% 39% 20% 28% 15-25 26-35 36-45 46and aboveINSIGHTS:Out of 150 respondents were studied, 39% of the respondents were between the age of 15to 25, 28% were26-35, 20% were 36-45 and 13 % were the above 46 years oldOCCUPATION OF THE RESPONDENTSTABLE: 4:2 39
  • 46. CATEGORY NUMBERS % STUDENTS 66 44% BUSINESS 36 24% EMPLOYEES 48 32%CHART: 4:2 Occupation 32% 44% 24% students business employeesINSIGHTS:The respondents of the study mainly segmented to three category they are students .selfemployed and employees. Out of the total population 44% of the respondents werestudents, 32% were employees and 24%were business peopleBRAND USAGETABLE: 4:3 40
  • 47. BRAND USAGE BRAND CUSTOMERS % SPICE 12 8% HUTCH 33 22% AIRTEL 42 27% BSNL 28 195% TATA INDICOM 16 11% RELIANCE 19 135%CHART: 4:3 BRAND USAGE 13% 8% SPICE 11% 22% HUTCH AIRTEL BSNL 19% TATA INDICOM 27% RELIANCEINSIGHTS:Six brands were used for the research .By using the convenient sampling method,27% ofthe customers were using AIRTEL ,22% were using HUTCH,19% BSNL,13%RELIANCE,11%TATA INDICOM AND 8% were using spice .TYPE OF CONNECTIONTABLE: 4:4 41
  • 48. TYPE OF CONNECTION CONNECTION NUMBERS % PREPAID 88 58% POSTPAID 64 42%CHART: 4:4 TYPE OF CONNECTION 42% 58% PREPAID POSTPAIDINSIGHTS:From the total population 58% of the respondents were using prepaid connection andremaining 42% were using post paid connectionTIME OF USAGETABLE: 4:5 42
  • 49. TIME OF USAGE Yrs NUMBERS % 0-1Yrs 38 25% 1-3Yrs 63 42% 4-5Yrs 33 22% 5 Yrs and above 16 11%CHART: 4: 5 TIME OF USAGE 11% 25% 22% 42% 0-1Yrs 1-3Yrs 4-5Yrs 5 Yrs a nd a bo v eINSIGHTS:42% of the respondents were using the same brand in between 1-3 yrs ,25% were usingbetween 0-1 yrs ,22% were4-5 yrs and 11% were using this brand for more than 5 yearsBRAND LOYALTY - SPICETABLE: 4:6 43
  • 50. Yrs NUMBERS % 0-1Yrs 6 50% 1-3Yrs 3 25% 4-5Yrs 2 17% 5 Yrs and above 1 8%CHART: 4:6 LOYALTY-SPICE 8% 17% 50% 25% 0-1Yrs 1-3Yrs 4-5Yrs 5 Yrs and aboveINSIGHTS:50% of the SPICE customers are using this brand between 0-1 years, 25%of them areusing between 1-3 years 17% were between 4-5 yrs 8% of them are using this brand for 5years and aboveBRAND LOYALTY- HUTCH 44
  • 51. TABLE: 4:7 Yrs NUMBERS % 0-1Yrs 4 12% 1-3Yrs 10 30% 4-5Yrs 13 40% 5 Yrs and above 6 18%CHART: 4: 7 LOYALTY -HUTCH 18% 12% 30% 40% 0-1Yrs 1-3Yrs 4-5Yrs 5 Yrs and aboveINSIGHTS:40% of the HUTCH customers are using this brand between 0-1 years, 30%of them areusing between 1-3 years 40% were between 4-5 yrs 18% of them are using this brand for5 years and aboveBRAND LOYALTY- AIRTELTABLE: 4 8 45
  • 52. Yrs NUMBERS % 0-1Yrs 4 10% 1-3Yrs 11 26% 4-5Yrs 17 40% 5 Yrs and above 10 24%CHART:4: 8 LOYALTY-AIRTEL 10% 24% 26% 40% 0-1Yrs 1-3Yrs 4-5Yrs 5 Yrs and aboveINSIGHTS:10% of the AIRTEL customers are using this brand between 0-1 years, 26%of them areusing between 1-3 years 40% were between 4-5 yrs 24% of them are using this brand for5 years and aboveBRAND LOYALTY- BSNLTABLE: 4: 9 46
  • 53. Yrs NUMBERS % 0-1Yrs 4 14% 1-3Yrs 8 29% 4-5Yrs 11 39% 5 Yrs and above 5 18%CHART: 4: 9 LOYALTY-BSNL 18% 14% 29% 39% 0-1Yrs 1-3Yrs 4-5Yrs 5 Yrs and aboveINSIGHTS:14% of the BSNL customers are using this brand between 0-1 years, 29%of them areusing between 1-3 years 39% were between 4-5 yrs 18% of them are using this brand for5 years and aboveBRAND LOYALTY- TATA INDICOMTABLE:4: 10 47
  • 54. Yrs NUMBERS % 0-1Yrs 5 31% 1-3Yrs 7 44% 4-5Yrs 4 25% 5 Yrs and above 0CHART: 4:10 LOYALTY-TATA INDICOM 0% 25% 31% 44% 0-1Yrs 1-3Yrs 4-5Yrs 5 Yrs and aboveINSIGHTS:31% of the TATA INDICOM customers are using this brand between 0-1 years, 44%ofthem are using between 1-3 years 25% were between 4-5 yrs .BRAND LOYALTY- RELIANCETABLE: 4: 11 48
  • 55. Yrs NUMBERS % 0-1Yrs 5 26% 1-3Yrs 8 42% 4-5Yrs 6 32% 5 Yrs and above 0CHART: 4: 11 LOYALTY-RELIANCE 0% 26% 32% 42% 0-1Yrs 1-3Yrs 4-5Yrs 5 Yrs and aboveINSIGHTS:26% of the RELIANCE customers are using this brand between 0-1 years, 42%of themare using between 1-3 years 32% were between 4-5 yrsBRAND SWICTHING BY CUSTOMERSTABLE: 4: 12 49
  • 56. BRAND SWICTHING STATUS NUMBERS YES 79 NO 71CHART: 4: 12 BRAND SWICTHING 47% 53% YES NOINSIGHTS:Out of 150 populations 53 % of the respondents says they were swhiched their serviceproviders and 47% say they haven’t switched the brandsBRAND SWITCHING 50
  • 57. TABLE: 4: 13 BRAND NUMBERS SPICE 24 HUTCH 20 AIRTEL 12 BSNL 6 TATA INDICOM 9 RELIANCE 8CHART: 4: 13 BRAND SWICHING 30 24 25 20 20 NUMBERS 15 12 9 10 8 6 5 0 SPICE HUTCH AIRTEL BSNL TATA RELIANCE INDICOM BRANDINSIGHTS:This figure represents the intensity of switching by the customers. out of the 79 switchedcustomers,24 customers are switched from SPICE ,20 from hutch,12 from AIRTEL ,6,9,8, from the following brand respectively BSNL ,TATA INDICOM and RELIANCECUSTOMER PREFERENCESTABLE: 4:14 51
  • 58. CUSTOMER PREFERENCES PREFERENCES NUMBERS NETWORK 143 ROAMING 128 OFFERS 132 CUSTOMER CARE 98 CALL COST 110CHART: 4: 14 CUSTOMER PREFERENCES 160 143 140 128 132 120 110 CUSTOMERS 98 100 80 60 40 20 0 NETWORK ROAMING OFFERS CUSTOMER CALL COST CARE PREFERENCESINSIGHTS:This figure represents preferences of various customers and also the factors they areexpecting from the service providers .The various factors are Network, Roaming, Offers,Customer care, Call cost. And also these are the number of customer’s which are giventhe opinion respectively143, 128, 132, 98 and110.TOP BRANDSTABLE: 4: 15 TOP BRANDS BRAND NUMBERS 52
  • 59. AIRTEL 77 HUTCH 44 BSNL 29CHART: 4: 15 TOP BRANDS BSNL 19% AIRTEL 52% HUTCH 29% AIRTEL HUTCH BSNLINSIGHTS:Based on the analysis conducted 52 % of the respondents said AIRTEL is the leading andnumber one brand .29%says HUTCH and 19% said BSNL is the leading brand inKarnataka.ADVERTISEMENT RECALLTABLE: 4:16 BRAND NUMBERS 53
  • 60. SPICE 2 HUTCH 49 AIRTEL 74 BSNL 2 TATA INDICOM 19 RELIANCE 4CHART: 4:16 ADVERTISEMENT RECALL 80 74 70 60 49 NUMBERS 50 40 30 19 20 10 2 2 4 0 SPICE HUTCH AIRTEL BSNL TATA RELIANCE INDICOM BRANDSINSIGHTS:This chart explains the advertisement recall of various brands. The figure is given here isthe number of respondents who could recollect the advertisement in the first glance.AIRTEL is the leading brand which created a high recollection of advertisement .74respondents could recollect the AIRTEL advertisement .49 is HUTCH,19 is TATAINDICOM ,2,2 and 4 is respectively for SPICE ,BSNL and RELIANCE.RECOLLECTION OF ADVERTISEMENTTABLE: 4: 17 PARTIALLY 41 54
  • 61. FULLY 109CHART: 4: 17 ADVERTISEMENT RECALL 27% 73% PARTIALLY FULLYINSIGHTS:73% of the respondents were recollected the advertisement fully and 27% of therespondents were recollected partiallyBRAND OPINION BY SPICE CUSTOMERSTABLE: 4: 18 SPICE 1 2 3 4 5 NETWORK 22 82 40 6 0 55
  • 62. AFTER SALES 18 58 59 10 5 VALUE ADDED 15 51 62 17 5 ROAMING 10 25 61 36 18 OFFERS 9 21 81 27 12CHART: 4: 18 BRAND OPINION-SPICE 90 82 81 80 NETWORK 70 6261 AFTER SALES 58 59 60 CUSTOMERS 51 VALUE ADDED 50 40 40 36 ROAMING 30 27 25 OFFERS 22 21 18 17 18 20 15 12 10 9 10 10 6 5 5 0 0 1 2 3 4 5 RATINGINSIGHTS:This figure shows the “brand opinion” of the brand SPICE. The opinions were givenbased on the various aspects they are Network, after sales services, value added services,roaming and offers. The rating were given 1-5 which means 1 is worst,2 is bad ,3 isaverage ,4 is good and 5 is excellent. Bars are representing each factor for the opinion.Numbers are given to each bars which represents the numbers of respondents which isprovided the opinionBRAND OPINION BY HUTCH CUSTOMERSTABLE: 4:19 HUTCH 1 2 3 4 5 56
  • 63. NETWORK 10 68 65 11 6 AFTER SALES 4 12 40 62 32 VALUE ADDED 9 18 44 59 20 ROAMING 10 38 58 32 12 OFFERS 8 27 60 37 18CHART: 4: 19 BRAND OPINION -HUTCH 80 68 70 65 62 5860 59 60 NETWORK CUSTOMERS 50 44 40 AFTER SALES 38 37 40 32 32 VALUE ADDED 30 27 20 18 ROAMING 18 20 10 12 11 12 OFFERS 9 10 8 10 6 4 0 1 2 3 4 5 RATINGINSIGHTS:This figure shows the “brand opinion” of the brand HUTCH. The opinions were givenbased on the various aspects they are Network, after sales services, value added services,roaming and offers. The rating were given 1-5 which means 1 is worst,2 is bad ,3 isaverage ,4 is good and 5 is excellent. Bars are representing each factor for the opinion.Numbers are given to each bars which represents the numbers of respondents which isprovided the opinionBRAND OPINION BY AIRTELCUSTOMERSTABLE: 4: 20 AIRTEL 1 2 3 4 5 NETWORK 7 29 46 68 57
  • 64. AFTER SALES 9 18 75 48 VALUE ADDED 10 23 64 53 ROAMING 8 21 65 56 OFFERS 16 30 61 43CHART: 4:20 BRAND OPINION-AIRTEL 80 75 68 70 6465 61 56 NETWORK 60 53 46 48 AFTER SALES 50 CUSTOMERS 43 VALUE ADDED 40 29 30 ROAMING 30 23 21 OFFERS 18 20 16 9 10 8 10 7 0 1 2 3 4 5 RATINGINSIGHTS:This figure shows the “brand opinion” of the brand AIRTEL. The opinions were givenbased on the various aspects they are Network, after sales services, value added services,roaming and offers. The rating were given 1-5 which means 1 is worst,2 is bad ,3 isaverage ,4 is good and 5 is excellent. Bars are representing each factor for the opinion.Numbers are given to each bars which represents the numbers of respondents which isprovided the opinionBRAND OPINION BY BSNL CUSTOMERSTABLE: 4: 21 BSNL 1 2 3 4 5 NETWORK 10 19 67 54 58
  • 65. AFTER SALES 8 27 60 37 18 VALUE ADDED 9 21 58 50 12 ROAMING 2 18 50 80 OFFERS 4 8 21 68 49CHART: 4: 21 BRAND OPINION-BSNL 90 80 80 67 68 NETWORK 70 60 58 AFTER SALES 60 54 CUSTOMERS 50 50 49 50 VALUE ADDED 37 ROAMING 40 30 27 OFFERS 21 19 21 18 18 20 10 12 8 9 8 10 4 2 0 1 2 3 4 5 RATINGINSIGHTS:This figure shows the “brand opinion” of the brand BSNL. The opinions were givenbased on the various aspects they are Network, after sales services, value added services,roaming and offers. The rating were given 1-5 which means 1 is worst,2 is bad ,3 isaverage ,4 is good and 5 is excellent. Bars are representing each factor for the opinion.Numbers are given to each bars which represents the numbers of respondents which isprovided the opinionBRAND OPINION BY TATA INDICOM CUSTOMERSTABLE: 4: 22 TATA INDICOM 1 2 3 4 5 59
  • 66. NETWORK 10 38 54 40 8 AFTER SALES 8 29 59 38 16 VALUE ADDED 10 18 61 43 18 ROAMING 10 38 60 30 12 OFFERS 9 21 65 39 16CHART: 4: 22 BRAND OPINION-TATA INDICOM 70 65 NETWORK 59 61 60 60 54 AFTER SALES 50 43 40 38 VALUE ADDED 38 38 39 CUSTOMERS 40 29 30 ROAMING 30 21 18 16 18 16 OFFERS 20 10 8 10 10 9 12 8 10 0 1 2 3 4 5 RATINGINSIGHTS:This figure shows the “brand opinion” of the brand TATA INDICOM. The opinions weregiven based on the various aspects they are Network, after sales services, value addedservices, roaming and offers. The rating were given 1-5 which means 1 is worst,2 isbad ,3 is average ,4 is good and 5 is excellent. Bars are representing each factor for theopinion. Numbers are given to each bars which represents the numbers of respondentswhich is provided the opinionBRAND OPINION BY RELIANCE CUSTOMERSTABLE: 4: 23 RELIANCE 1 2 3 4 5 NETWORK 6 9 25 61 49 60
  • 67. AFTER SALES 10 38 58 34 10 VALUE ADDED 10 36 64 25 15 ROAMING 9 21 69 39 12 OFFERS 17 51 62 15 5CHART: 4:23 BRAND OPINION-RELIANCE 80 69 NETWORK 70 64 62 61 58 AFTER SALES 60 51 49 VALUE ADDED CUSTOMERS 50 38 39 ROAMING 40 36 34 30 OFFERS 25 25 21 20 17 15 15 12 10 10 9 9 10 10 6 5 0 1 2 3 4 5 RATINGINSIGHTS: This figure shows the “brand opinion” of the brand RELIANCE. The opinionswere given based on the various aspects they are Network, after sales services, valueadded services, roaming and offers. The rating were given 1-5 which means 1 is worst,2 isbad ,3 is average ,4 is good and 5 is excellent. Bars are representing each factor for theopinion. Numbers are given to each bars which represents the numbers of respondentswhich is provided the opinionBRANDUSAGE- STUDENTSTABLE: 4:24 BRANDUSAGE STUDETS 61
  • 68. BRAND STUDENTS SPICE 6 HUTCH 19 AIRTEL 25 BSNL 11 TATA INDICOM 3 RELIANCE 2CHART: 4:24 BRAND USAGE-STUDENTS 5% 3% 9% 17% 29% 37% SPICE HUTCH AIRTEL BSNL TATA INDICOM RELIANCEINSIGHTS:This figure shows that, out of 66 student respondents 37% uses AIRTEL brand ,29%usesHUTCH,17%uses BSNL,9% uses SPICE ,5% uses TATA INDICOM, and 3% usesRELIANCE as their service providersBRANDUSAGE- BUSINESS CLASSTABLE: 4:25 BRANDUSAGE BUSINESS CLASS 62
  • 69. BRAND BUSINESS CLASS SPICE 2 HUTCH 5 AIRTEL 7 BSNL 7 TATA INDICOM 7 RELIANCE 8CHART: 4: 25 BRAND USAGE-BUSINESS CLASS 6% 23% 14% 19% 19% 19% SPICE HUTCH AIRTEL BSNL TATA INDICOM RELIANCEINSIGHTS:This figure shows that, out of 36 business class customers 19% uses AIRTEL brand ,14%uses HUTCH,19%uses BSNL,6% uses SPICE ,19% uses TATA INDICOM, and23% uses RELIANCE as their service providersBRAND USAGE-EMPLOYEESTABLE: 4:26 BRAND USAGE EMPLOYEES BRAND EMPLOYEES 63
  • 70. SPICE 4 HUTCH 9 AIRTEL 10 BSNL 10 TATA INDICOM 6 RELIANCE 9CHART: 4: 26 BRAND USAGE-EMPLOYEES 19% 8% 19% 13% 20% 21% SPICE HUTCH AIRTEL BSNL TATA INDICOM RELIANCEINSIGHTS:This figure shows that, out of 48 Employees 20% uses AIRTEL brand ,19%usesHUTCH,21%uses BSNL,8% uses SPICE ,13% uses TATA INDICOM, and 19% usesRELIANCE as their service providersBRAND USAGE COMPARISONTABLE: 4:27 BUSINESS BRAND/ STUDENT CLASS SEGMENT S (66) (36) EMPLOYEES(48) 64
  • 71. SPICE (12) 6 2 4 HUTCH(33) 19 5 9 AIRTEL(42) 25 7 10 BSNL (28) 11 7 10 TATA INDICOM(16) 3 7 6 RELIANCE(19) 2 8 9CHART: 4:27 BRAND USAGE COMPARISON STUDENTS(66) 30 25 BUSINESS 25 CLASS(36) 20 19 EMPLOYEES(48) CUSTOMERS 15 11 10 10 10 9 9 8 7 7 7 6 6 5 5 4 3 2 2 0 SPICE (12) HUTCH(33) AIRTEL(42) BSNL (28) TATA RELIANCE(19) INDICOM(16) BRANDSINSIGHTS:This figure shows the comparison of the usage of various brands between the threesegments of respondent’s .Bars represents the three segments of customers. This figureshows that students which shows more attachment towards AIRTEL, HUTCH, BSNL andSPICE. In the business class RELIANCE, TATA INDICOM, BSNL and AIRTEL are theleading brands respectively .In the case of employees, AIRTEL, BSNL, RELIANCE andHUTCH are the leading respectively. 65
  • 72. CHAPTER 5SUMMARY OF FINDINGS CONCLUSIONS AND RECOMMENDATION RESEARCH FINDINGS 66
  • 73.  Out of 150 respondents were studied, 39% of the respondents are between the age category of 15 to 25, 28% are 26-35, 20% are 36-45 and 13 % are the above 46 years old. As per the hypothetical testing of customer segments and its influence on brand choice reveals that the customer segments does not influence the brand choice .As per the responses analyzed, the attributes of the product is the major factor leads to the choice of mobile service provider. The respondents of the study mainly segmented to three categories they are students, self employed and employees. Out of total population, 44% of the respondents were students, 32% were employees and 24%were business people. Out of Six brands and 150 respondents used, 27% of the customers are using AIRTEL, 22% are using HUTCH, 19% BSNL, 13% RELIANCE, 11%TATA INDICOM and 8% are using spice. 58% of the respondents are using prepaid connection and remaining 42% are using post paid connection. 42% of the respondents have been using the same brand from 1-3 yrs ,25% are using between 0-1 yrs ,22% are 4-5 yrs and 11% are using their brand for more than 5 years. 50% of the SPICE customers are using this brand between 0-1 years, 25%of them are using between 1-3 years 17% were between 4-5 yrs 8% of them are using this brand for 5 years and above. 40% of the HUTCH customers are using this brand between 0-1 years, 30%of them are using between 1-3 years 40% were between 4-5 yrs 18% of them are using this brand for 5 years and above. 67
  • 74.  10% of the AIRTEL customers are using this brand between 0-1 years, 26%of them are using between 1-3 years 40% were between 4-5 yrs 24% of them are using this brand for 5 years and above. 31% of the TATA INDICOM customers are using this brand between 0-1 years, 44%of them are using between 1-3 years 25% were between 4-5 yrs . 14% of the BSNL customers are using this brand between 0-1 years, 29%of them are using between 1-3 years 39% were between 4-5 yrs 18% of them are using this brand for 5 years and above. 26% of the RELIANCE customers are using this brand between 0-1 years, 42%of them are using between 1-3 years 32% were between 4-5 yrs. 53 % of the respondents says they were switched their service providers and 47% say they haven’t switched the brands. Out of the 79 switched customers,24 customers are switched from SPICE ,20 from hutch,12 from AIRTEL ,6,9,8, from the following brand respectively BSNL ,TATA INDICOM and RELIANCE. Customer’s preferences and the factors expecting from the service providers are the following .Study says Network is the major factor which is suggested by 143 respondents , Roaming, Offers, Customer care, and Call cost are the other factors, suggested by 128, 132, 98 and110 customers respectively. 52 % of the respondent says AIRTEL is the leading and number one brand, 29%says HUTCH and 19% said BSNL is the leading brand in Karnataka. The factors considered in ranking the brand by customers are network, offers after sales and customer care, value added services and call costs. 68
  • 75.  .AIRTEL is the leading brand which shows a high recollection of advertisement. Out of 150 respondents 74 respondents could recollect the AIRTEL advertisement .49 is HUTCH, 19 is TATA INDICOM, 2, 2 and 4 is respectively for SPICE, BSNL and RELIANCE. 73% of the respondents were recollected the advertisement fully and 27% of the respondents were recollected partially. Brand opinion of the brand SPICE or the rating which is given to the brand by the various customers on the different factors is below average. In network 69% rated below average, for after sales 50% says below average, for value addition44 says below average and 41 says average, for roaming 44% said below average and 41 says average and for offers 54%says average. HUTCH rated in above average category brand. In network 52% rated below average and 43 says average, for after sales 62% says above average and excellent, ,for value addition52% says good ,for roaming 38% says average ,for offers 40%says average and 36 says above average and good. AIRTEL rated as top brand. In network 76% rated good and excellent , for after sales 82% says above average and excellent, ,for value addition78% says good ,for roaming 80% above average ,for offers 69%says above average. BSNL rated in above average category brand. In network 80% rated above average and good, for after sales 40% says average and 36% says good,for value addition 38% says average and 41 says good ,for roaming 86% says good and excellent ,for offers 78% says above average. TATA INDICOM rated in average category brand. In network 36% rated average , for after sales 39% says average , for value addition 40% says average and 40% says good ,for roaming 40% says average ,for offers 43% says average. 69
  • 76.  RELIANCE rated in average category brand. In network 73% rated above average and good, for after sales 40% says average , for value addition 42% says average ,for roaming 46% says average and 34% rated as good, for offers 41% says average. Out of 66 student respondents, 37% uses AIRTEL brand ,29%uses HUTCH,17%uses BSNL,9% uses SPICE ,5% uses TATA INDICOM, and 3% uses RELIANCE as their service providers. Out of 36 business class customers 19% uses AIRTEL brand ,14%uses HUTCH,19%uses BSNL,6% uses SPICE ,19% uses TATA INDICOM, and 23% uses RELIANCE as their service providers. Out of 48 Employees 20% uses AIRTEL brand ,19%uses HUTCH,21%uses BSNL,8% uses SPICE ,13% uses TATA INDICOM, and 19% uses RELIANCE as their service providers. VAS (Value Added Services) is the major factor which generates lot of profit to the service providers as well lot of benefits to the end users.Inorder to implement the fledged Value Added Services, these are the major challenges that the service providers are facing. • Lack of infrastructure (2G TO 3G) • Preference for low cost feature hand sets • High cost to the end user • Absence of utility services • Under developed WAP market 70
  • 77. SUGGESTIONS 71
  • 78. SUGGESTIONS Since SPICE and HUTCH are the brand which has showed a high rate of switching, they have to implement certain strategies to increase the customer loyalty. Certain measures are suggested and also a qualitative study towards the development of strategies is suggested. For the customers who have been using the same prepaid connection for certain years need to have the option to change their schemes In order to increase the loyalty towards the brand, Customers who have been using the same brand for more than certain years should treat with attractive gifts or free insurance coverage etc. Since the hypothetical testing revealed that the customer segment does not influence the brand choice ,all brands should carefully analyze and implement strategies to attract every segment of customers is suggested Network is the major factor for the brand selection, since brands like Spice, Hutch and TATA indicom showed a not satisfactory performance, it is worth suggesting these companies to concentrate on these factors. The most important consumer segments in the cellular industry is youth and business class .the youth segment is the largest and fastest growing segment and therefore companies need to target most heavily on youth segment 72
  • 79.  Mobile phone user base hitting a saturation point in city .The rural market mobile population is very less ,so in the coming days companies focuses must be more on the rural market Since the brands like SPICE,TATAINDICOM and RELIANCE shown a poor performance in the advertisement and promotion,inorder to improve the brand image, massive advertisements and effective promotions need to be implemented An effort towards doing a further qualitative research on customers opinion on value added services ,offers and expectations is suggested Customers are to be made aware of the Value Added Services and offers and to be informed about the benefits of the same At the point of switching the brand to another brand by a customer, the new service providers should be implement a system to provide the same number for the new brand. A research and development on the same is suggested Since the mobile industry in India is growing at a high rate, a new plan called “ROAMING FREE INDIA” is suggested to implement. The introduction of Video sharing system is an innovative strategy to increase the brand image. Since the usage of customers differ from customer to customer ,a launch of “Customized schemes” is suggested and also certain plans for family members need to be implemented. R&D in VAS (Value Added Services) is suggested. 73
  • 80. CONCLUSION 74
  • 81. CONCLUSIONAfter the liberalization of the Indian telecom sector in 1994, the Indian cellular marketwitnessed a surge in cellular service .the attraction of mobile service is increasing day byday because of the continued expansion of the services and facilities made available bythe cellular operators through mobile telephony which are made possible by technologicalapgradation as well as information technology revolutionFuture growth will most certainly come as much from technology driven value additionsas from expanded coverage. Competition has forced the cellular companies to reduce theirtariff and budget has reduce the custom duty on hand sets and spare parts advertisementsthrough the brand ambassadors has changed the mind set of the customers.This study helps one to not only understand the brand equity of various brands but alsothe preferences of the customers and the need of the most advanced technology in themodern timesAll the objectives were met with satisfactory results and the brand AIRTEL has beenidentified as the brand which gas got the more brand equity in Karnataka. Also it wasfound out that every brand should develop strategies to improve their services in everyaspect to increase its brand equity to have more customer reach, so as to capture theKarnataka market.To conclude, I quote the popular Chinese proverb ‘a journey of a thousand miles beginswith a single step’. 75
  • 82. BIBLIOGRAPHYBIBLIOGRAPHY 76
  • 83. BooksName of the book: Research Methodology methods and techniquesEdition: Second editionAuthors: C. R. KothariPublisher: Wishwa PrakashanName of the book: Business Research methodsEdition: Eight editionsAuthors: Donald R. Cooper, Pamela S. SchindlerPublisher: Tata McGraw-HillName of the book: Marketing management byEdition: Eleventh editionsAuthors: Philip KotlerJournalsThe ICFAI Journal of services marketingVolume V No: 2March 2006ICFAI university pressPage no 35: Cellular mobile industry in IndiaWebsiteswww.trai.gov.inwww.dotindia.comwww.indiainfoline.comwww.marketresearch.com 77
  • 84. ANNEXURE ANNEXUREQuestionnaire 78
  • 85. Brand equity of mobile service providers1. Name: ………………………………2. Age 15-25 26-35 36-45 46 above3. Occupation Student Business Employee4. Present service provider? Spice Hutch Airtel BSNL TATA Indicom Reliance5. Whether pre-paid or post-paid? Pre-paid post-paid6. How long you have been using this brand? 0-1 Yr 1-3 yrs 4-5 yrs 5years and above7. Have you ever switched your service provider? a) If yes, previous service provider:…………………………………………... b) Reason for switching:………………………………………………………8) What are factors that you look for in a service provider most? In ranking. a) ……………………………………………………………………………… b) ……………………………………………………………………………… c) ………………………………………………………………………………9) Your suggestion regarding any innovative factors that is not prevailing now? 79
  • 86. ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………... 10) According to your opinion rank the finest service providers Spice Hutch Airtel BSNL TATA Indicom Reliance 11) Factors considered in ranking, order wise a) ……………………………………………………………………………… b) ……………………………………………………………………………… c) ……………………………………………………………………………… 12) Have you seen any advertisement of mobile service provider brand? Yes No 13) Which is the brand that comes first in your mind? Spice Hutch Airtel BSNL TATA Indicom Reliance 14) I can recollect the advertisement, Fully Partially 15) Have you faced any problem with your service providers? If yes ,mention 1) ………………………………………………………………………………… 2) ………………………………………………………………………………… 3) ………………………………………………………………………………...14. Rate the service providers, on the scale of 1-5 on following parameters,5 being excellent and 1 for worst 80
  • 87. Brand Network After Value Roaming Offers Parameters sales added services Spice Hutch Airtel BSNL TATA Indicom RelianceStudy ConductedUnder the supervision ofMr. Vinod JosephPlacement CoordinatorMBA DepartmentKristu Jayanti CollegeBangalore - 77Ph: 28465611ByLiju Varghese ThomasMBA -4 Th SemesterKristu Jayanti CollegeBangalore - 77Mob: 919900445286 81