A                   PROJECT REPORT                             ON“Employing      the potential of Retail chain distributio...
PREFACEThe successful completion    of this project was a unique experience for mebecause by visiting many place and inter...
CERTIFICATE OF ORIGINALITYI, Tara Chand Saini S/o Shri Paras Ram saini, having Roll no. 1031 of Batch2009-11, do hereby ce...
TABLE OF CONTENTSS. No.   PARTICULARS                     PAGE NO-   1     INTRODUCTION OF COMPANY         5-9   2     CEL...
INTRODUCTION TO THE COMPANY                                                          Sir Ratan Tata   Jamsetji Nusserwanji...
Year 1945: Led commercial vehicle production.Year 1968: Led India’s first software development company.Year 1998: Launc...
Tata Teleservices spearheads the Groups presence in the telecom sector.Incorporated in 1996, Tata Teleservices was the fir...
new handsets, new voice & data services such as BREW games, picturemessaging, polyphonic ring tones, interactive applicati...
Ceramics), charter flights( Taj Air), cooling appliances(Voltas), creditcards(Tata Sons), fertilizers(Tata Chemicals), fin...
10
CELLULAR TECHNOLOGIESOverviewWireless communications      use   the   radio-frequency      spectrum   fortransmitting   an...
predominate include Canada (63% of end 1999 subscriber base),Brazil (34% in 1999), the Philippines (52% in 1999), and Thai...
Because of this power requirement, hand held devices were out of thequestion, and portable ones filled a briefcase.Second ...
•   Opportunity to provide improved data transmissions in addition       to voice because of digital transmission over a r...
suitable to more densely populated metropolitan areas. PCS hasseveral advantages over existing cellular telephone service....
and 2 mbps for stationary users. The indoor radio channels typicallysupport higher data rates with better reliability than...
List of documents:List of Documents needed for a connection: The various documents that areneeded for a post paid walky an...
For a connection that is to be installed at a shop or any                         business related location:1. Proof of id...
HANDSETS             Huawei 2285             Kyocera K122           Samsung Hero NXT                              19
Availability on Postpaid                                                   Yes                             Yes   Availabil...
Advantages of using TATA Indicom:Tata Indicom provides various facilities to its walky and mobile users. Thevarious advant...
•   Call waiting and Voice mail facility: If the user is busy talking to a       particular number, and any other person i...
•   Internet facility: A customer can access Internet through the phones,    with a speed of 120 kbps.•   Hot line facilit...
•    Three way conference: A person can talk with up to one thousand     people at a time. This can be achieved by just di...
Indian Telecom MarketIndian telecom market has shown excellent performance in the fiscal 2005-06.Tele-density in India is ...
In fiscal 01, out of the total increase of almost 7 million users, 6 million was forfixed line connections. The trend star...
Operations in UP West [Dehradun Cluster]TTSL products offered in UP West Circle are CMO i.e. Mobile Service (Prepaidand Po...
Demographic Details of major cities in UP West Circle                                                                   4 ...
Role of Distributor:The responsibilities of Distributor towards the Retailer’s are:   1. Providing the retailers with the ...
Beat PlanBeat Plan is a schedule designed to make sure a certain number of visits toretailers by the FOS over a week. Thes...
Each FOS is accountable for 3 beats, each of 30 – 35 retailers. These beats aregeographically allocated to different FOSs....
INTRODUCTION TO THE INDUSTRYTelecommunicationsOne    of     the   fastest   growing   sectors   in   the   country,telecom...
July-September 2005, from 104.22 million as on June 2005,      registering an increase of 8.49 per cent during the quarter...
2005-07 in Asia with key drivers being India along with Brazil      and China.  •   The China-headquartered Haier group, w...
•   Bharti, which has been offering telecom services in Seychelles    for the last seven years under the brand Airtel Seyc...
Telecommunication in IndiaThe Indian telecommunications Network with 77m telephoneconnections is the fifth largest in the ...
ILD calls and 25% drop in NLD charges, resulting in a boom timefor the consumers.The Government has played a key enabling ...
INDIAN CELLULAR MARKETThe Bharti Group, which operates in 15 circles, continues to be thecountrys largest cellular operato...
March 2005, a 97.29% growth over 0.64 crore in March 2004. Thesubscriber base was 0.36 crore in March 2003.The cellular su...
While the subscriber base-jumped by 3.38% to 44.39 lakh in themetros, subscriber base of category A circles of Maharashtra...
MARKETING STRATEGY             ADOPTED BY TATA INDICOMTata-Indicom has spent a considerable amount on advertising itsmobil...
brand stature. Tata-Indicoms campaign in the capital began with aseries of teaser hoardings across the city, bearing just ...
Every company has a goal, which might comprise a sales target anda game plan with due regard to Its competitor.       Tata...
like the "Freedom concert" are being organised by Airtel in order topromote sales.         The media channel is chosen wit...
Operations in UP West [Dehradun Cluster]TTSL products offered in UP West Circle are CMO i.e. Mobile Service (Prepaidand Po...
3. AgraDemographic Details of major cities in UP West Circle                                                              ...
DISTRIBUTION                             Company   Franchisee                                Distributor   Dealer         ...
controlling territorial overlaps of dealers. The franchises can carryout his 1 her own promotional strategy.      For this...
TATA INDICOM OFFERSWith Tata-Indicom, the subscriber wouldnt just get a personalphone that lets him/her be in touch, alway...
Brand ambassadors:Global companies have long understood the power and impact of associatingpopular personalities with thei...
Tata has always associated itself with success. It has tried deliberately to bein the minds of the customers as the numero...
Brand awareness of IndicomBrand awareness is when people recognize your brand as yours. This doesnot necessarily mean they...
The benefits of a strong brandHere are just a few benefits people will enjoy when company create astrong brand:  • A stron...
will automatically think of the company and its products first when    they think of buying the necessary product.•   A st...
Tata Indicom has also concentrated on this aspect and thus has done a lot ofthings to create strong brand awareness for th...
I have met retailers of the Tata-Indicom of the company andhave been able to get first hand information regarding theprodu...
Scope of the study• To identify the marketing programs being run by Tata Indicom   and to study the impact of marketing st...
LIMITATIONS      • The company officials also too tend to give biased answers, as they          always want to give a rosy...
DATA ANALYSIS                  QUESTIONNAIRE ANALYSISQ1. Do you have a mobile phone ?    a) Yes       b) NoQ2. Are you awa...
a) Call rates                   b) sms service         c)       Network      d)Value added servicesQ5. Give your suggestio...
NO      14%                            YES                            86%How long you are using Tata Indicom?             ...
Never used        5> one month                       20Two months        5One month              10              0   5   1...
Services provided by the Tata Indicom                                        GOOD                                         ...
Rating of Existing Service Provider on the basis of prompt            service provided to the customer                  10...
Best feature of your TATA INDICA    All of the     above                                        50  40 paisa/mt     STD   ...
What problem do you find on your mobile?                     None of the              Connectivity                       a...
CONCLUSIONThe promotional strategies, I got to learn at Tata Indicom gave me anin-depth knowledge about application of Mar...
Employees also believe that integration of sales, marketing andcustomer services function is must for achieving better rel...
“If you think you can    --- you can”.                        SWOT ANALYSISSTRENGTHS• Cost advantage• Current leaders in q...
OPPORTUNITIES• To sustain passion and commitment• Tata’s market share increasing at other service provider expense.  Thus ...
• BIBLIOGRAPHY•   Kotler,   Philip;   Amstrong,   Garg.   Principles   of   Marketing,    Millennium Edition, Prentice Hal...
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  1. 1. A PROJECT REPORT ON“Employing the potential of Retail chain distribution of Tata Tele Services In partial fulfillment in award of PGDM Two Year Full Time Programme COMPANY GUIDEFACULTY GUIDE Mr. Neeraj AgrawalMr. VIPUL SIR Assistant manager Sales & Marketing SUBMITTED BY TARA CHAND SAINI PGDM 4TH SEM (2009-2011) PRESIDENCY INSTITUTE INTERNATIONAL MANAGEMENT 1
  2. 2. PREFACEThe successful completion of this project was a unique experience for mebecause by visiting many place and interacting various person ,I achieved abetter knowledge about sales . The experience which I gained by doing thisproject was essential at this turning point of my carrer this project is beingsubmitted which content detailed analysis of the research under taken by me.The research provides an opportunity to the student to devote his/her skillsknowledge and competencies required during the technical session.ACKNOWLEDGEMENTI express my sincere gratitude to my industry guide Mr. Neeraj Agrawal,Assist .manager – Sales & Marketing, Tata Teleservices Limited for his ableguidance, continuous support and cooperation throughout my training,without which the present work would not have been possible.I would also like to thank the entire team of Tata Teleservies Limited, fortheir constant support and help in the successful completion of thisproject.Last but not least I would like to thank to all those who have directly orindirectly helped me in successful completion of my training. 2
  3. 3. CERTIFICATE OF ORIGINALITYI, Tara Chand Saini S/o Shri Paras Ram saini, having Roll no. 1031 of Batch2009-11, do hereby certify and declare that this research report titledemploying the potential of Retail chain distribution of Tata Tele Services Is the result of my own work? This report contains no materials orinformation which has been previously submitted for any other academicdiploma or degree, except where indicated otherwise.Date : Signature of thestudent : APPROVAL PAGEThis report, entitled, employing the potential of Retail chaindistribution of Tata Tele Services, prepared and submitted by, TaraChand Saini, in partial fulfillment of the requirements for thedegree of PGDM is hereby accepted Mr. Vipul (Faculty Guide) 3
  4. 4. TABLE OF CONTENTSS. No. PARTICULARS PAGE NO- 1 INTRODUCTION OF COMPANY 5-9 2 CELLULAR TECHNOLOGY 10-15 3 LIST OF DOCUMENTS 16-17 4 HANDSETS 18-19 5 ADVANTAGES 20-23 1. INDIA TELECOM MARKET 24-30 2. INTRODUCTION TO THE INDUSTRY 31-39 3. MARKETING STRATEGY 40-48 4. BRAND AMBASSADORS & AWARENESS 49-54 5. RESEARCH METHOLOGY 54-57 6. DATA ANALYSIS 58-65 7. CONCLUSION 67-68 8. SWOT ANALYSIS & BIBILIOGRAPHY 69-71 4
  5. 5. INTRODUCTION TO THE COMPANY Sir Ratan Tata Jamsetji Nusserwanji Tata (1871-1918) (1839-1904) Sir Dorabji Tata JRD Tata (1904-1993)TATA GroupMajor MilestonesYear 1903: Started India’s first chain of luxury hotels with The Taj Mahal hotel in Mumbai.Year 1907: Pioneered India’s steel industry with Tata Steel set up in Jamshedpur.Year 1910: Started first power plant in India.Year 1932: Pioneered civil aviation in India. 5
  6. 6. Year 1945: Led commercial vehicle production.Year 1968: Led India’s first software development company.Year 1998: Launched India’s first passenger car.The Tata Group comprises 93 operating companies in seven business sectors:information systems and communications; engineering; materials; services;energy; consumer products; and chemicals. The Group was founded by JamsetjiTata in the mid 19th century, a period when India had just set out on the road togaining independence from British rule. Consequently, Jamsetji Tata and thosewho followed him aligned business opportunities with the objective of nationbuilding. This approach remains enshrined in the Groups ethos to this day.The Tata Group is one of Indias largest and most respected businessconglomerates, with revenues in 2004-05 of $17.8 billion (Rs 799,118 million),the equivalent of about 2.8 per cent of the countrys GDP.Tata companies together employ some 215,000 people. The Groups 32 publiclylisted enterprises — among them standout names such as Tata Steel, TataConsultancy Services, Tata Motors and Tata Tea have a combined marketcapitalisation that is the highest among Indian business houses in the privatesector, and a shareholder base of over 2 million. The Tata Group has operationsin more than 40 countries across six continents, and its companies exportproducts and services to 140 nationsAbout TTSLTata Teleservices is part of the INR 76,930 Crore (US$17.10 billion) Tata Group,that has over 90 companies, over 220,000 employees and more than 2 millionshareholders. With an investment of over INR 9,000 Crore (US$ 2 billion) inTelecom, the Group has a formidable presence across the telecom valuechain. 6
  7. 7. Tata Teleservices spearheads the Groups presence in the telecom sector.Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobileservices in India with the Andhra Pradesh circle.Starting with the major acquisition of Hughes Tele.com (India) Limited [nowrenamed Tata Teleservices (Maharashtra) Limited] in December 2002, thecompany has swung into expansion mode. Tata Teleservices operates in 20circles i.e. Andhra Pradesh, Chennai, Gujarat, Karnataka, Delhi, Maharashtra,Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, HimachalPradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, MadhyaPradesh and West Bengal. The investment in Tata Teleservices Limited(including Tata Teleservices (Maharashtra) Limited) as of March 2005 totals INR14,446 Crores (US$ 3.21 billion)Having pioneered the CDMA 3G1x technology platform in India, TataTeleservices has established a robust and reliable telecom infrastructure thatensures quality in its services. It has partnered with Motorola, Ericsson, Lucentand ECI Telecom for the deployment of a reliable, technologically advancednetwork.The company, which heralded convergence technologies in the Indian telecomsector, is today the market leader in the fixed wireless telephony market with acustomer base of over 2.8 million for the period ended September05.Tata Teleservices bouquet of telephony services includes Mobile services,Wireless Phones, Public Telephony Booth, and Wireline services. Other servicesinclude value added services like voice portal, roaming, 3-way conferencing,group calling and data services.The company has launched Prepaid FWP and Public phone booths, a range of 7
  8. 8. new handsets, new voice & data services such as BREW games, picturemessaging, polyphonic ring tones, interactive applications like news, cricket,astrology, etc. These are in addition to its existing services of Postpaid Mobile,Prepaid Mobile & Postpaid FWP.Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra)Limited serve more than 7 million customers in 1700 towns and aims at 4000towns by March06. With an ambitious rollout plan both within existing circles andacross new circles, Tata Teleservices is offering world-class technology anduser-friendly services in 20 circles.Values  Fairness through meritocracy.  Trust based on accountability.  Tenacity for results.  Pioneering spirits.  Excellence in execution.  Leadership with humanity.MissionTo empower every Indian to connect with the world affordably.VisionTrusted service 100 million happy customers by 2011. The sectors, in which the TATA GROUP is into, arethe following, namely:Agricultural appliances (Tata Agrico), agrochemicals (Rallis), books(TataMc Graw Hill), cellular products and services(Tata Indicom), ceramics (Tata 8
  9. 9. Ceramics), charter flights( Taj Air), cooling appliances(Voltas), creditcards(Tata Sons), fertilizers(Tata Chemicals), financial services(Tata AssetManagement, Tata Investment Corporation), food products(Tata tea, Tatacoffee), garments and home products(Westside), holiday homes, homeappliances(Tata BP Solar), hotels, fertilizers (Tata chemicals),insurance(Tata AIG Life Insurance, Tata AIG General Insurance), jewellery(Tanishq), multi utility vehicles and passenger cars (Tata Motors),telecommunications(Tata Indicom), watches (Titan) etc.The board of directors comprises ofMr. Ratan N. TataMr. N.A. SoonawalaDr. J.J. IraniMr. J.K.SetnaMr. V.R.Mehta (Institutional Representative)Mr. R.GopalakrishnanMr. Nusli N.WadiaMr. Helmut PetriMr. S.A.NaikMr. Ravi KantDr. V.SumantranMr. P.P.KadleMr. P.K.M.Fietzek 9
  10. 10. 10
  11. 11. CELLULAR TECHNOLOGIESOverviewWireless communications use the radio-frequency spectrum fortransmitting and receiving voice data and video signals forcommunications. The common element of all wireless radio services isthat they use a radio frequency or channel of a wire communicate toand from one or more locations.EVOLUTION OF CELLULAR TECHNOLOGIESWireless mobile telephone systems have evolved through threegenerations: • First Generation (I G) Analog Systems • Second Generation (2G) Digital Systems-GSM, TDMA, CDMA • Third Generation (3G) Digital SystemsFirst Generation Systems (1G): 1980s-PresentThe first generation cellular systems (1G), introduced. in the 1980sand early 1 990s, used analog cellular and cordless telephonetechnology. Networks based on 1 G analog dominated the majority ofcellular networks till the early 1990s. Analog systems still operate inthe US, with an estimated 49% of the end- 1999 subscriber base of86.05 million. Other major countries where analog systems still 11
  12. 12. predominate include Canada (63% of end 1999 subscriber base),Brazil (34% in 1999), the Philippines (52% in 1999), and Thailand(56% in 1999). However, by end 1999, subscriber base on analogtechnologies was only an estimated 177% of the global cellularsubscriber base.Analog systems are more prone to interference, static, eavesdroppingand cloning than digital systems.They also have several limitations, including lack of privacy and limitedcapacity. The traditional analog cellular systems, such as those basedon the AMPS and TACS, use Frequency Division Multiple Access(FDMA). The FDMA technique enables multiple users to share the sameregion of spectrum, This standard supports clear communication andinexpensive mobile telephones, but the transmissions are easy tointercept on a standard radio receiver and therefore are susceptible toeavesdropping. Although technically simple to implement, FDMA iswasteful of bandwidth. Moreover, it cannot handle alternate forms ofdata, only voice transmissions. Significantly, the analog systems usedone centrally located transmitter site, usually mounted very high up toachieve the greatest possible range. For the mobiles to transmit thisfar, they needed very high power. 12
  13. 13. Because of this power requirement, hand held devices were out of thequestion, and portable ones filled a briefcase.Second Generation Digital Systems (2G): Early 1990s-PresentDuring the early 1980s, even as analog cellular systems were firstgoing into service, research and development of digital cellularsystems were in progress. Digital cellular communications (2G DigitalSystems) convert all voice transmissions to computer language (zerosand ones, or "binary" language) and then reconstruct them into theoriginal voice format at the other end.Digital technology offers many advantages over analogtechnology, including: • Efficient use of available spectrum and substantially enhanced network capacity, due to • TDMA and CDMA, which allow a more efficient use of radio spectrum than the previous FDMA technology. • Easy integration with personal communication systems (PCS) devices, Superior quality of voice transmission over long distances. • Difficult to decode, enabling voice privacy. Can use lower average transmitter power, Enables smaller and less expensive individual receivers and transmitters. 13
  14. 14. • Opportunity to provide improved data transmissions in addition to voice because of digital transmission over a radio channel. • Enables long term digital handset cost reductions with economies of scale, since digital handsets have a lower power consumption and their functional intelligence can be squeezed onto fewer semiconductor chips.As a result, digital systems are currently the technology of choicethroughout the world, with an estimated 82.3% of the globalsubscriber base by end- 1999Two types of 2G Higher Tier systems were standardized and deployedin the 1990s. One is the cellular mobile systems which are moreprevalent today and are characterised by the division of a geographicalarea into cells, typically 3-5 kms in radius, served by a radio station atits centre. The other are the Personal Communication Systems (PCS),which have much smaller cells, typically 200-500 meters in radius, andare supposedly more economical and better in quality.Personal Communication Systems (PCS)They have much shorter distances between mobile phones and thenearby radio station, which reduces the power required to transmitsignals from the mobile phones, improving the voice quality andincreasing data speed. However, in order to cover the same area, alarger number of cells (and radio stations) is required, thus making it 14
  15. 15. suitable to more densely populated metropolitan areas. PCS hasseveral advantages over existing cellular telephone service. Theyinclude better service quality through use of digital technology, morecompact radio interface equipment, increased mobility, enhancedservice features, and price.Third Generation Systems (3G): 2000 OnwardsIn 1985, the original concept for 3G wireless systems merged from anITU initiative known as the Future Public Land MobileTelecommunication System (FPLMTS). In 1996, FPLMTS was re-designated as International Mobile Telecommunications-2000(IMT-2000). The number 2000 was chosen, because the ITUstimetable called for a standard to be defined by the year 2000.IMT-2000/3G is best understood as a minimum set of capabilities fordelivering communications services. IMT-2000 does not define the airinterface that will deliver the services, nor does it specify what theIMT-2000 services will be. 3G is an open, packet-based, networkingstrategy that enables integration of voice, data, and multimedia forwireless mobile networks worldwide. It would support higher datarates than do 2G systems and yet be less expensive. The IMT-2000recommendations call for a wireless data speed of 144 kbps for high-speed mobile users, 384 kbps for users moving at pedestrian speeds, 15
  16. 16. and 2 mbps for stationary users. The indoor radio channels typicallysupport higher data rates with better reliability than does the outdoorchannel used by persons moving rapidly. 3G would also advance otheraspects of wireless communications by reducing equipment size,extending battery life, and improving ease of operation. The keyfeatures of IMT-2000 are high degree of commonality of designworldwide; compatibility of services within IMT-2000 and with thefixed network; superior two-way voice communication quality; smallterminals for worldwide use; worldwide roaming capability; andcapability for multimedia applications and a wide range of services(e.g. video-teleconferencing, high speed Internet, speech and highrate data). 16
  17. 17. List of documents:List of Documents needed for a connection: The various documents that areneeded for a post paid walky and mobile connection from Tata Indicom arethe following: For the connection that is to be installed at residence:1. Identity Proof (anyone):• Driving license• Voter’s identity card• Passport• Bank Pass Book, with a stamped a photo on it• Photo credit card.• Arms and Ammunition license2. Proof of Residence (Anyone):• Passport• Driving license• Paid telephone bills (not more than 4 months old)• Paid electricity bills (not more than 4 months old)• Paid water bill (not more than 4 months old)• Vehicle registration certificate• Ration card• Municipal tax payment receipt3. PAN Card or Form 60. 17
  18. 18. For a connection that is to be installed at a shop or any business related location:1. Proof of identity (Anyone)• Shops and Establishment Registration Certificate• Municipal Registration Proof• Sales Tax Registration Certificate• Memorandum of Association• Government Document sent from a government office2. Proof of Address (Anyone)• Memorandum of Association signed by the Director• Sales Tax Registration Certificate• Municipal Registration Proof• Shops and Establishment Certificate• Telephone Bills (Not more than 4 months old)• Government document sent from the government office• Original Bank Statement attested is a bank official. 18
  19. 19. HANDSETS Huawei 2285 Kyocera K122 Samsung Hero NXT 19
  20. 20. Availability on Postpaid Yes Yes Availability on Prepaid Yes Yes Yes Brew 2.1.1.2/ Candy Bar/ B&W Mobile Tracker,Emergency SOS Unique feature Speaker phone & voice recorder Display with Colour Filter alert ,T9 Hindi&LMS B & W // Color B&W B/W with Colour Filter 4 Gray B&W T-Sim / Non T-Sim T-Sim NA T-SIM Display Size Type CSTN Monochrome, FSTN 1.33" , FSTNScreen Resolution standardised 96x65 96x64 128x128 format ( 128 X 90 etc) 100 (Inbox,OutBox& Draft)+ 20 SMS Yes Yes (50) Templates MMS NA No NA 12 Poly -30 Embeded ringtones& Ring tone type - Polyphony 32-Poly MIDI-12 Tata Zone FM Radio No NA No Speaker phone Yes NA No Games (2~3) No 1 2 Phone book memory 500 No Data Modem No Applications Platform No BREW BREW Lite Browser No NA No PC Sync No Phonebook Only Available Camera No NA No Video Capture No NA No Zoom No NA No MP3/ AAC Support No NA No Bluetooth No NA No Infrared Port No NA No External Memory Slot No NA No Email No NA No Touch Screen No NA No Touch Keypad No NA No Handwriting recognition No NA No Operating System REX Rex REX Document viewer No NA No Rigtones download & SMS based Tata Zone support No Yes services Battery Capacity 600mAh 900 mAh 800mAh Talk time 3-4 hrs 3.5 Hrs 3Hrs Stand-by time 150-190 Hrs 200 Hrs 215 Hrs Weight about 80g 78 gms 76.2 gms Video Streaming No 20
  21. 21. Advantages of using TATA Indicom:Tata Indicom provides various facilities to its walky and mobile users. Thevarious advantages are: • Phone book: The phone has a vast memory and can store up to 500 numbers, and in the models Axxestel and LG LSP 350 T, the phone book has a memory of 500 names and in front of each name, four numbers can be stored. So, it makes up to 2000 numbers. • Display: The display screen is wide that helps the customers to see clearly. • Large call history: The call book is very large, as it enables to check the call history, that is all 60 last dialed numbers, missed calls, as well as received calls. • Phone lock system: The customer can bar all the local as well as the STD calls being made from the phone by locking the phone by dialing the number given to the subscriber at the time of connection. • Caller Line Identification Process or CLIP facility: The user of the phone can identify the caller through this facility as the number from which a person is calling is displayed on the screen of the user. 21
  22. 22. • Call waiting and Voice mail facility: If the user is busy talking to a particular number, and any other person is trying to call him then the third number from which the user is getting a call will be displayed on the screen, along with a beep. • Closed user group: This facility is provided to only those customers who subscribe in bulk. If there are more than ten connections at a time by any person, or any society or even corporate, then they are given some special facilities in the form of concessions in the call charges, like the intra group calling will be free, and activation charges, like the amount needed for the activation of the phone will be wavered, i.e. it will be either reduced or there would be no deposits and no activation charges etc. • Voice mail: The user can use this facility and keep receiving the call indirectly, i.e., the message of the caller to that number will be recorded in the phone and the user can refer to it, afterwards according to his/her convenience.There are some other facilities also that are provided by the company,along with the above mentioned ones which are listed below. Those are: • Call forward: If a person wants to receive the call from other number, then the call can be forwarded to his/ her number through this facility. 22
  23. 23. • Internet facility: A customer can access Internet through the phones, with a speed of 120 kbps.• Hot line facility: This facility can be used in case of emergencies. For this a number is fed as “hot line number”. If the receiver is off the hook for one minute, then there is automatically calling to a number that has been fed as the hot line number.• Off hook facility: In this, the customer can receive a call even when the receiver is kept off the hook, i.e. if the receiver is not kept properly, then the line for this number will be engaged for first three numbers, and the fourth number which is being dialed to this particular number, will start ringing. There will be a beep, and then the phone will start working normally automatically. This is helpful as many-a-times the receiver is not kept properly by mistake. So, in those cases, this facility helps.• Call restriction: If the customer doesn’t want to receive a call from a particular number, then he/ she can block the number by calling to the customer care centre. Again, if he/she can block the calls from a particular city, or state just dialing the STD code of that particular place. The person who will be calling to these numbers will always find the numbers engage. 23
  24. 24. • Three way conference: A person can talk with up to one thousand people at a time. This can be achieved by just dialing the number and you can invite another person to talk to you. So, the chain can go on increasing till the total number of people who are on line is one thousand.• Pooling facility: This facility is provided mainly to the corporate or those customers who install more than five phones line connection from the company. In this facility, there is a sharing of the bills amongst these numbers. For example, if there are three departments in a office with different requirements and intensity for calling. And if the customer has subscribed to a plan in which he gets a free talk time of Rs.500. Now if department A has a monthly expenditure for Rs.800, department B has a monthly expenditure of Rs.200, and department C has a monthly calling of Rs 500. Then, the balance amount of Rs.500 of department A will be adjusted to the charge of department and, the subscriber would not have to pay the extra amount for the unutilized amount of the free talk time of department of as it automatically gets adjusted in department A’s account. Thus, this facility gives the customer value for money. 24
  25. 25. Indian Telecom MarketIndian telecom market has shown excellent performance in the fiscal 2005-06.Tele-density in India is galloping.The number of telecom subscribers in India grew by 41.2 million in 2005-06 totouch 140 million. According to the data, during 2005-06 the teledensity in thecountry grew 12.73 per cent.The large chunk of telecom subscribers are in the mobile phone category withthe customer base in this segment growing 37 million to touch 90 million,according to the Telecom Regulatory authority of India (TRAI).The total subscriber base of fixed line phones stood at 49 million by the end of2005-06.For mobile segment 5.03 million subscribers have been added during March2006. The mobile additions consist of 3.78 million GSM subscribers and 1.25million CDMA subscribers as against 3.17 million GSM and 1.11 million CDMAsubscribers in the previous month. The total mobile subscribers at the end ofMarch 2006 touched 90 million.In the fixed segment a total of 0.30 million subscribers were added during March2006. With this the total subscriber base of fixed lines reached around 49.75million.In fiscal 06, the increase was more than entire user base as recently as fiveyears ago. The teledensity in India is still much less than the developed countriessuch as UK (102%) and USA (60%). India still lags China (23%). But it iscatching up fast. This increase has been brought about mainly by the explosionin mobile subscriptions. Most of the recent growth has been in the mobile userbase. 25
  26. 26. In fiscal 01, out of the total increase of almost 7 million users, 6 million was forfixed line connections. The trend started shifting from fiscal 02, when the numberof new connections added started to go down for fixed line and increasedexponentially for mobile services. In fiscal 06, the number of new mobileconnections added was close to 38 million, while the number of fixed line went upby only 3.8 million. That is almost 10 times more! But fixed line connections aregoing up again.Within the wireless space, the GSM segment still leads in absolute numbers. TheGSM subscriber base continues to be more than 3 times the CDMA subscriberbase.At the end of fiscal 06, the total number of GSM subscribers was close to 69million users, while CDMA had close to 23 million. However, CDMA continues togrow at much faster rates than GSM. During the fiscal 06, GSM subscriptionsgrew at 68%, while CDMA connections grew at 86%.The largest mobile operator continues to be Bharti with 19.6 million subscribers,followed by Reliance Communications Venture Ltd with 17.4 million mobile users.State-owned Bharat Sanchar Nigam Ltd has 17.2 million subscribers and is thirdin the race at the end of March.At the end of April 2006, the total fixed-line telephone subscribers were about47.51 million (against 46.78 million in March), taking the combined base ofmobile and fixed telephony subscribers to 144.43 million.With the addition of 4.6 million new customers added in April, gross telecomsubscriber base in India has grown to 144 million pushing the tele-density to13.16 per cent. The tele-density was 12.73 per cent in March 2005. 26
  27. 27. Operations in UP West [Dehradun Cluster]TTSL products offered in UP West Circle are CMO i.e. Mobile Service (Prepaidand Postpaid service), Walky (Fixed Wireless Phone) and PTB (PublicTelephone Booth).These products are each being handled by separate departments. The UP Westand Uttaranchal is further subdivided into smaller clusters which are : 1. Meerut. 2. Dehradun 3. Agra 27
  28. 28. Demographic Details of major cities in UP West Circle 4 UP West Population Per Capita Income 2 w heelers w heelers TV Households Corp SME Bareilly 729,800 10,876 64,160 5,435 140,487 10 125 Dehradun 505,343 13,468 169,232 27,801 101,069 22 225 Meerut 1,167,399 18,237 176,873 19,443 245,154 10 480 Agra 1,321,410 13,669 289,942 29,563 277,496 15 658 Moradabad 641,240 11,380 101,528 7,342 118,629 5 280 Total 4,365,192 16,908 801,735 89,584 882,834 62 1,768 TOTAL UPW 53,508,148 11,668 1,295,804 126,714 125 NA Nursing Engg/Medical/ Branded Cinema UP West Doctors CAs Advocates Homes Mgmt Inst. Colleges Schools Universities stores Halls Bareilly 473 116 2,401 105 14 8 44 1 45 11 Dehradun 900 60 2,000 55 70 5 135 - 60 6 Meerut 790 263 3,536 123 17 10 110 2 45 17 Agra 1,260 350 3,200 190 17 6 140 2 65 28 Moradabad 358 52 1,267 50 3 5 40 - 35 9Product Contribution – UP West UP West 24% 8% 62% 6% Walky Post Walky Pre CMO Post CMO Pre 28
  29. 29. Role of Distributor:The responsibilities of Distributor towards the Retailer’s are: 1. Providing the retailers with the required stock to allow their proper functioning. 2. Keeping the retailers updated about changes in Changes in Tariff, Services and company’s policy of operation. 3. Timely collection of CAF from the retailers and submitting them to the customer care division of the company. 4. Providing the retailer with POP material to help them attract more customers. 5. Passing on the benefits given by the company to the retailers.The responsibilities of Distributor towards the Company are: 1. To maintain a stock of handsets for 15 – 21 days and that of RCV (Recharge Coupon Vouchers) for 7 – 14 days as directed by Tata Indicom. 2. To ensure placements of Indicom’s products so as to increase the availability and visibility. 3. To keep up superior relationship with all its retailers this would eventually lead to sales with recommendations from retailer. 4. Achieving the secondary sales targets given by the company. 5. Opening up on new retail outlets in order to increase the availability and penetration of company’s products and services. 6. Timely investment into business. 29
  30. 30. Beat PlanBeat Plan is a schedule designed to make sure a certain number of visits toretailers by the FOS over a week. These visits depend on the number ofhandsets sold per month which are the basis for classification of retail outlets.Classification of Retail OutletsWhile preparing beat plan it becomes important to classify the retail outlets onthe basis of volume of sales they provide. All the retail outlets of Tata Indicomwere classified in four categories as under:Category Monthly Sales Frequency of FOS visitsA Sales of > 15 handsets / month DailyB Sales of 10 – 14 handsets / month Once in 2 daysC Sales of 5 – 9 handsets / month Once in 3 daysD Sales of 1 - 4 handsets / month WeeklyClass A retailers form only about 15% of all outlets but in terms of sales valuethey provide 60% – 70% of business. Thus a Class A retailer is precious to Tataindicom and needs to be given individual attention. Such a retail outlet is usuallyprovided with better schemes, is more often visited by the FOS and is providedwith the best POP (Point of Purchase) merchandise.For Sample Beat Plan please refer to Appendix C.Role of FOSThe FOS (Feet on Street) is a person trained by the company who works with thedistributor to make secondary sales, i.e. sales made by the distributor to theretailers. The FOS is responsible for product presentation, order taking, stockchecking and collections on credit sales due to the distributor. 30
  31. 31. Each FOS is accountable for 3 beats, each of 30 – 35 retailers. These beats aregeographically allocated to different FOSs. The FOS makes visits to the retailersunder his territory according to the beat plan, which specifies which all retailersare to be met on a given day. On these visits the FOS makes productpresentation, highlighting the benefits of Tata Indicom over its competitors. Healso lets the retailer know about the current promotional offers being floated byIndicom for its retailers and customers. The FOS provides the retailer withcompany merchandise and POP material, which increases the visibility of TataIndicom, its products and schemes. This also helps the retailer make sales easilyand earn a significant margin.Another key task performed by the FOS is “Order taking”, which includes theconfirmation about the volume and value of the stock ordered and entering so inthe order book. The FOS also handles the duty of stock checking, where heverifies the opening stock, the number of activations, stock of recharge couponsand the closing stock. He is also expected to have a fair idea about thecompetitor’s stock, number of activations and schemes as well.On the Distributor end the FOS is responsible for timely submission of theretailer’s orders and is liable to specify any special commitments made by him. 31
  32. 32. INTRODUCTION TO THE INDUSTRYTelecommunicationsOne of the fastest growing sectors in the country,telecommunications has been zooming up the growth curve at afeverish pace in the past few years. • The number of mobile phones (including 20.8 million WLL (M)) as on January 31, 2006, was about 83 million, which is over 63 per cent of the total number of phones in the country. • Over 32 million new telephones were added during April- January of the current financial year, with five million additions occurring in January alone, taking the total number of phones in the country to 130.8 million as on January 31, 2006. • Tele-density has increased from 8.8 per cent in January 2005 to 11.7 per cent at the end of January 2006. • According to the Telecom Regulatory Authority of India (TRAIs) quarterly performance indicators, Internet user base has grown 15 per cent from September 2004 to September 2005, with private operators accounting for 2.6 million users. • The gross subscriber base of the fixed and mobile services together reached 113.07 million at the end of the quarter 32
  33. 33. July-September 2005, from 104.22 million as on June 2005, registering an increase of 8.49 per cent during the quarter.Under the Bharat Nirman Yojana, a total 66,822 villages are to beprovided with village public telephones (VPT) by November 2007.Destination IndiaThe growth statistics of the sector combined with the governmentsdecision to increase the foreign direct investment cap in the sectorto 74 per cent is generating interest among global investors. India,one of the fastest growing countries in telecom manufacturing inthe world, will attract another US$ 855 million as foreigninvestment over the next two years. • India has become the ‘crown jewel’ in Hong Kong-based Hutchison Telecom, contributing about 41 per cent of the groups total revenues of US$ 3.1 billion in 2005. This amounted to more than half of Hutch International’s gross profit. • Nokia calls India its stepping stone to success. It said that convergence and 3G products will increase exponentially from 33
  34. 34. 2005-07 in Asia with key drivers being India along with Brazil and China. • The China-headquartered Haier group, with a global presence in home appliances and consumer electronics, has set up a joint venture for telecom in India for the handset and equipment business. • Nortel, North Americas biggest telecommunications equipment provider, has signed a five-year deal to provide call centre services for Bharti, which has a more than 22 per cent market share of the mobile phone market in India. • Israeli telecommunications equipment maker ECI Telecom opened a new research and development centre in India in an effort to reduce the time to market new products.Global foraysIndia offers an unprecedented opportunity for telecom serviceoperators, infrastructure vendors, manufacturers and associatedservices companies. With global telecom bigwigs keenly looking atthe fast-growing Indian market, domestic majors are busy dialingin new deals and expanding overseas. 34
  35. 35. • Bharti, which has been offering telecom services in Seychelles for the last seven years under the brand Airtel Seychelles Ltd., announced that it would soon launch next generation 3G services there with an initial investment of US$ 968,309.• Videsh Sanchar Nigam Ltd (VSNL) has said that SNO Telecommunications (PTY) Ltd, in which the company is a principal shareholder, has received a telecom licence to operate in South Africa.• The Tata Group will invest more than US$ 230-million in South Africa over the next three years to develop and operate telecommunication services.• Reliance Infocomm has joined hands with China Telecommunications to provide direct telecom connectivity for the first time between the two countries. It will now route communications traffic between India and China on a global network of its group company Flag Telecom. 35
  36. 36. Telecommunication in IndiaThe Indian telecommunications Network with 77m telephoneconnections is the fifth largest in the world and is the secondlargest among the emerging economies of Asia. Today it is thefastest growing market in the world and represents uniqueopportunities for UK companies in the stagnant global scenario.Tele-density, which was languishing at 2% in 1999, has shown animpressive jump to 7% in 2005 and is set to increase to 20% in thenext five years beating the Govt. target by three years. Accordingly,India requires incremental investments of USD10-15 bln for the next five years.Private operators have made mobile telephony the fastest growing(over 164% p.a.) in India. With more than 33 million users (bothCDMA and GSM), wireless is the principal growth engine of theIndian telecom industry. Given the current growth trends, cellularconnections in India will surpass fixed line by late 2004/early2005. Intense competition between the four main private groups -Bharti, Hutch, Tata and Reliance and with the State sectorincumbents-BSNL and MTNL has brought about a significant dropin tariffs. There has been almost 74% in cell phone charges, 70% in 36
  37. 37. ILD calls and 25% drop in NLD charges, resulting in a boom timefor the consumers.The Government has played a key enabling role by deregulatingand liberalising the industry, ushering in competition and pavingthe way for growth. While there were regulatory irregularitiesearlier, resulting in litigation, these have all been addressed now.Customs duties on hardware and mobile handsets have beenreduced from 14 percent to 5 percent.The Indian government has merged the IT and Telecom Ministriesto speed up reforms and decision on the CommunicationConvergence Bill to enable the common regulation of the Internet,broadcasting and telecoms will be taken after the new Governmentassumes responsibilities in may this year. An independentregulatory body (TRAI) and dispute settlement body (TDSAT) is fullyfunctional. 37
  38. 38. INDIAN CELLULAR MARKETThe Bharti Group, which operates in 15 circles, continues to be thecountrys largest cellular operator, with 30.71 lakh subscribers.BSNL, which operates in 17 circles, has a subscriber base of 22.56lakh subscribers. Thus BSNL stands second largest cellularoperator in terms of subscriber base at the end of the fiscal endingMarch 31, 2005, displacing Hutchison from the second position.Hutch, which operates in only seven circles, is the third largestoperator with a subscriber base of 21.64 lakh. Unlike fellow publicsector undertaking, MTNL, which operates in Mumbai and Delhi,BSNL has been a very aggressive player in the market. "Cellularoperators who expected BSNL to go the MTNL way, were taken bysurprise and did not take effective steps to counter it, till it was toolate in the day," said a telecom analyst.Belying fears of a slowdown in cellular subscriber acquisitions, thecell club has reported a 7.92% growth, the highest growth in anymonth so far, during March 2005. Year-on-year, the cellularsubscriber base in the country has almost doubled to 1.27 crore in 38
  39. 39. March 2005, a 97.29% growth over 0.64 crore in March 2004. Thesubscriber base was 0.36 crore in March 2003.The cellular subscriber club expanded by 9.31 lakh last month.This is much higher than 5.9 lakh subscribers added in February2005 and 2.13 lakh in January 2005. Idea, which operates in fivecircles, is the fourth largest operator with a subscriber base of12.80 lakh, higher than BPLs 11.31 lakh subscribers across fourcircles. The subscriber numbers per operator drop sharply with thesixth largest operator, Spice Communications, having a subscriberbase of 6.40 lakh, followed by Escotel with a base of 5.87 lakh andReliance Telecoms 5.41 lakh subscribers.MTNL is the ninth largest operator, with a base of 2.92 lakhsubscribers, followed by Aircels 2.3 lakh subscribers and AircelDigilinks 1.83 lakh subscribers. RPG Cellular is the 12th largestoperator with 1.79 lakh subscribers, followed by Hexacoms 1.32lakh subscribers.The growth in the cellular subscriber base was seen to have sloweddown in the past two months because of the hype created bylimited mobility. Before that, monthly additions in the last threemonths of calender year 2004 averaged around 6.75 lakh. 39
  40. 40. While the subscriber base-jumped by 3.38% to 44.39 lakh in themetros, subscriber base of category A circles of Maharashtra,Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu jumped by10.18 % to reach 43.64 lakh. Category B circles of Kerala, Punjab,Haryana, Uttar Pradesh (West), Uttar Pradesh (East), Rajasthan,Madhya Pradesh and West Bengal recorded a jump of 10.69%, witha total base of 33.74 lakh subscribers. Circle C has reported 12.74% growth with subscriber numbers jumping to 5.08 lakh.Among the metros, while Mumbai added 63,180 subscribers,higher than the 58,646 added by Delhi, the Capitals cellularsubscriber base of over 18 lakh is still higher than Mumbais 16.89lakh. Last year, the cellular subscriber base had grown by 79.78%,thus reaching 64.3 lakh, compared to 35.77 lakh in the yearending March 2001. While the cellular industry has been on roll forthe first three quarters of the previous financial year with anaverage of 6.75 lakh monthly additions in the third quarter, thefirst two months of 2005 had seen the growth slowing down. 40
  41. 41. MARKETING STRATEGY ADOPTED BY TATA INDICOMTata-Indicom has spent a considerable amount on advertising itsmobile phone service, Tata-Indicom. Besides print advertising, thecompany had put up large no of hoardings and kiosks in andaround Delhi.The objective behind designing a promotion campaign for the ‘Tata-Indicom’ services is to promote the brand awareness and to buildbrand preferences.It is trying to set up a thematic campaign to build a stronger brandequity for Tata-Indicom. Since the cellular phone category itself istoo restricted, also the fact that a Cellular phone is a highinvolvement product, price doesnt qualify as an effectivedifferentiator. The image of the service provider counts a greatdeal. Given the Cell phone category, it is the network efficiency andthe quality of service that becomes important. What now the buyeris looking at is to get the optimum price-performance package.This also serves as an effective differentiator Brand awareness isspread through the campaigns and brand preference through 41
  42. 42. brand stature. Tata-Indicoms campaign in the capital began with aseries of teaser hoardings across the city, bearing just thecompanys name and without explaining what Tata-Indicom was.In the next phase the campaign associated Tata-Indicom withCellular only thereafter was the Tata-Indicom Cellular connectionbrought up. Vans with Tata-Indicom logos roamed the city,handing out brochures about the company and its services toall consumers. About 50,000 direct callers were sent out. Whenthe name was well entrenched in the Delhiites’s mind, the Tata-Indicom campaign began to focus on the utility of Cellphone. Inthe first four months aloneTata-Indicom s advertisement spend exceeded Rs. 4 crores.As of today the awareness level Is 60% unaided. This implies thatif potential or knowledgeable consumers are asked to name aCellular phone service provider that is on the top of his/her mind60% of them would name Tata-Indicom. As for aided it -is 100%(by giving clues and hints etc.).Brand strength of a product or the health of a brand is measuredby the percentage score of the brand on the above aided and theunaided tests. The figures show that Tata-Indicom is a healthy anda thriving brand. 42
  43. 43. Every company has a goal, which might comprise a sales target anda game plan with due regard to Its competitor. Tata-Indicomscampaign strategy is designed keeping in mind its marketingstrategy. The tone, tenor and the stance of the visual ads aredesigned to convey the image of a market leader in terms of itsmarket share. It tries to portray the image of being a "first moverevery time" and that of a "market leader".The status of the product in terms of its life cycle has just reachedthe maturity stage in India. It is still on the rising part of theproduct life cycle curve in the maturity stage.The diagram on the left hand side shows the percentage of theusers classified into heavy, medium and low categories. The righthand side shows the revenue share earned from the three types ofusers.Tata-Indicom, keeping in mind the importance of the customerretention, values its heavy users the most and constantly indulgesin service innovation. But, since heavy users comprise only 15 -20% of the population the other segment cannot be neglected.The population which has just realised the importance of cellularphones has to be roped in. It is for this reason that the serviceprovider offers a plethora of incentives and discounts. Concerts 43
  44. 44. like the "Freedom concert" are being organised by Airtel in order topromote sales. The media channel is chosen with economy inmind. The target segment is not very concrete but, there is anattempt to focus on those who can afford. The printadvertisements and hoarding are placed in those strategic areaswhich most likely to catch the attention of those who need acellular phone. The product promise (which might cost different 1higher) is an important variable in determining the target audience.Besides this, other promotional strategies that Tata-Indicom hasadopted are :(i) People who have booked Tata-Indicom services have been treated to exclusive premiers of blockbuster movies. Tata- Indicom has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent fliers programs.(ii) There have been educational campaigns, image campaigns, pre launch advertisements, launch advertisements, congratulatory advertisements, promotional advertise-ments, attacking advertisements and tactical advertisements. 44
  45. 45. Operations in UP West [Dehradun Cluster]TTSL products offered in UP West Circle are CMO i.e. Mobile Service (Prepaidand Postpaid service), Walky (Fixed Wireless Phone) and PTB (PublicTelephone Booth).These products are each being handled by separate departments. The UP Westand Uttaranchal is further subdivided into smaller clusters which are : 1. Meerut. 2. Dehradun 45
  46. 46. 3. AgraDemographic Details of major cities in UP West Circle 4 UP West Population Per Capita Income 2 w heelers w heelers TV Households Corp SME Bareilly 729,800 10,876 64,160 5,435 140,487 10 125 Dehradun 505,343 13,468 169,232 27,801 101,069 22 225 Meerut 1,167,399 18,237 176,873 19,443 245,154 10 480 Agra 1,321,410 13,669 289,942 29,563 277,496 15 658 Moradabad 641,240 11,380 101,528 7,342 118,629 5 280 Total 4,365,192 16,908 801,735 89,584 882,834 62 1,768 TOTAL UPW 53,508,148 11,668 1,295,804 126,714 125 NA Nursing Engg/Medical/ Branded Cinema UP West Doctors CAs Advocates Homes Mgmt Inst. Colleges Schools Universities stores Halls Bareilly 473 116 2,401 105 14 8 44 1 45 11 Dehradun 900 60 2,000 55 70 5 135 - 60 6 Meerut 790 263 3,536 123 17 10 110 2 45 17 Agra 1,260 350 3,200 190 17 6 140 2 65 28 Moradabad 358 52 1,267 50 3 5 40 - 35 9Product Contribution – UP West UP West 24% 8% 62% 6% 46 Walky Post Walky Pre CMO Post CMO Pre
  47. 47. DISTRIBUTION Company Franchisee Distributor Dealer Dealers Customer CustomerThe- company whose operations are concentrated in and aroundDelhi. It 27 Franchisees and 15 Distributors- They also have 8instant access cash card counters- Each franchises or distributorcan have any number of dealers under him as long as the person isapproved by the Tata-Indicom authority. Each franchises has toinvest Rupees Ten Lakhs to obtain a franchise and should employan officer recruited by Tata-Indicom. This person acts as an liaisonbetween the company and the franchises. The franchises can itany number of dealers as long as their territories do not overlap.But unfortunately Tata-Indicom has not been very successful in 47
  48. 48. controlling territorial overlaps of dealers. The franchises can carryout his 1 her own promotional strategy. For this the. companycontributes 75% of the money and the franchises contributes 25%of the money. The dealers under the franchisee receive the samecommission. The franchises and the dealer obtain the feedbackfrom the customers and they are sent through the liaison officer ona day-to-day basis to Tata-Indicom. The dealer has to investRupees. One Lakh as an initial investment. The dealer of Tata-Indicom are not allowed to provide any other operators service.Target set for distributors and the dealers is 100 -150 activationsper month. Hence the dealers can also go for their own promotionslike banners and discounts on festivals etc. The dealer providesservice promptly. The consumer on providing the bill of purchasefor the handset and proof of residence has only to wait an hourbefore getting connected. The staff of the dealers and thefranchisees are provided training by the Tata-Indicom personnel.The complaints encountered by the franchisees and dealers areeither handset being non-functional or the SIM Card not gettingactivated. Anything more complicated is referred to the main Tata-Indicom office in Delhi. 48
  49. 49. TATA INDICOM OFFERSWith Tata-Indicom, the subscriber wouldnt just get a personalphone that lets him/her be in touch, always, but also gets a host ofbenefits that let him/her manage his/her time like never before.An Tata-Indicom subscriber is provided with a Subscriber IdentityModule Card (SIM card) - that is the key to operating his/hercellular phone. His card activates Tata-Indicom cellular servicesand contains a complete micro-computer chip with memory toenable one to enjoy ones cellular phone thoroughly. Each SIM cardcontains a PIN code (Personal Identity Number) which may beentered by one. Just plug your SIM card into your cellular phone,enter the PIN code and it becomes your personal phone. 49
  50. 50. Brand ambassadors:Global companies have long understood the power and impact of associatingpopular personalities with their brand name and products. Most will agreethat a successful brand ambassador can make or break a new product launch,or even catapult a company into a new era of exponential revenues after along drought of fading brand clout. But these days choosing a brandambassador isn’t what it used to be. Now, with the rapid diffusion ofinformation made possible through the Internet, companies are seeing thedangers of making hasty decisions to link their products to public figures. Inthe past, reputations were not etched in stone, but were relatively stable andslow to change. Conversely, these days what goes around still comes around,only now this happens at the speed of light and travels to the ends of theworld.The primary role of the brand ambassador is to personify the values intrinsicto the brand and evoke the dreams associated with owning the product. Assuch, he or she must demonstrate a trend of increasing popularity andnotoriety in the markets where the advertising and promotion will be visiblein order to reach the projected target groups effectively. The notoriety of theambassador would be the magnet to attract a qualified target group toappropriate the brand. The conversion process would start with a prospect’sdesire to purchase a certain type of product. The consumer’s ultimate choiceof brand and model would then be influenced to some degree byidentification with the brand ambassador. 50
  51. 51. Tata has always associated itself with success. It has tried deliberately to bein the minds of the customers as the numero uno. For the same reasons, ithas selected themost successful captain of Indian cricket team, Saurav Ganguly, s its brandambassador.Saurav Ganguly can be associated with fame, success and glory. He bringsleadership and experience with his image. Again the other brandambassadors of the company are Narain Karthikeyan, Irfan Pathan, an dSania Mirza. These are the youth icons, and the rationale behind employingthem as brand ambassador is that they bring fresh energy as well asenthusiasm with in the mind of the customers. They are the voice and theface for Tata Indicom. Narain Karthikeyan is considered to be rationale.His is synonymous to speed and efficiency, and accuracy. Indicom intendsto set a similar picture of its own in the minds of the customers.Irfan Pathan and Saurav Ganguly advertised for the prepaid sector, whileAjay Devgan and Kajol promote the post-paid sector of Tata Indicom.This couple is now one of the most popular couple in the glam world. Theyrepresent a happy go lucky, carefree, yet successful pair. At the same time,the company portrays the couple as very conscious about choosing the rightthing out of the available choices. They always mention in theadvertisements that this is the most cost effective and the most suitabletelephonic service that one can chose. 51
  52. 52. Brand awareness of IndicomBrand awareness is when people recognize your brand as yours. This doesnot necessarily mean they prefer your brand (brand preference), attach ahigh value to, or associate any superior attributes to your brand, it just meansthey recognize your brand and can identify it under different conditions.Brand awareness consists of both brand recognition, which is the ability ofconsumers to confirm that they have previously been exposed to your brand,and brand recall, which reflects the ability of consumers to name your brandwhen given the product category, category need, or some other similar cue... 52
  53. 53. The benefits of a strong brandHere are just a few benefits people will enjoy when company create astrong brand: • A strong brand influences the buying decision and shapes the ownership experience. • Branding creates trust and an emotional attachment with the company or with the product. This attachment then helps the company to make decisions based, at least in part, upon emotion-- not necessarily just for logical or intellectual reasons. • A strong brand can command a premium price and maximize the number of units that can be sold at that premium. • Branding helps make purchasing decisions easier. In this way, branding delivers a very important benefit. In a commodity market where features and benefits are virtually indistinguishable, a strong brand will help the customers to trust the company and create a set of expectations about the company’s products without even knowing the specifics of the product features. • Branding will help the company to "fence off" the customers from the competition and protect the market share of the company while building mind share. Once the company has mind share, the customers 53
  54. 54. will automatically think of the company and its products first when they think of buying the necessary product.• A strong brand can make product features virtually significant. A solid branding strategy communicates a strong, consistent message about the value of the company. A strong brand helps the company to sell the values and tangibles that surround the products of the company.• A strong brand signals that the company wants to build customer loyalty, not just to sell the products. A strong branding campaign will also signal that the company is serious about marketing and that it is intended to be around for a while. A brand impresses the company’s firm identity upon potential customers, not necessarily to capture an immediate market but rather to build a lasting impression of the company and the products.• Branding builds name recognition for the company or the product.• A brand will help the company to articulate the companys values and explain why the company is competing in the market. 54
  55. 55. Tata Indicom has also concentrated on this aspect and thus has done a lot ofthings to create strong brand awareness for the company. For example, it haspainted the entire exterior of local trains, giving its advertisements on them.The idea is about surrounding the consumer in 360 degrees. As consumersmove away from conventional media, this kind of fragmentation and microtargeting is bound to happen in many ways.Again, in smaller towns, it has advertised heavily in the market places. Evenit has used a large number of billboards, banners, and occupied space in theprint media advertisements. RESEARCH METHODOLOGYTitle : Marketing Strategies of Tata IndicomData CollectionThe methodology adopted for this project is exploratory innature since there is no hypothesis that has to be tested. Theconclusions have been drawn by exploratory research work.There have been two sources of information collected:a) Primary Sources 55
  56. 56. I have met retailers of the Tata-Indicom of the company andhave been able to get first hand information regarding theproduct, its features and the buying patterns of the product.Their input has been valuable.b) Secondary SourcesSecondary source has played a vital role to play in this report. Agood amount of data has been collected from various publishedarticles and reports found in magazines and journals. Another vitalsource has been the Internet and particularly the companies ownwebsite.Objectives of the study• To study the importance and development of tele – communication industry in today’s scenario.• To understand the various Marketing Strategies which Tata Indicom has adopted to survive in highly competitive cell phone industry.• To make a comparative study of the major players in Indian Service Provider. 56
  57. 57. Scope of the study• To identify the marketing programs being run by Tata Indicom and to study the impact of marketing strategies on Tata Indicom.SIGNIFICANCE FOR THE RESEARCH :To facilitate in appreciative of marketing situation of Tata Indicom.RESEARCH TECHNIQUESSAMPLING METHODOLOGYSampling Unit : Individuals & FamiliesSampling Techniques : Convenient Sampling and judgmental samplingSampling Area : DehradunSample Size : 200 57
  58. 58. LIMITATIONS • The company officials also too tend to give biased answers, as they always want to give a rosy picture of their company. • The responses can be biased, as some of the respondents may not have revealed the true pictures. • The managers were reluctant to give information about the product.The sample was restricted to the Dehradun region only 58
  59. 59. DATA ANALYSIS QUESTIONNAIRE ANALYSISQ1. Do you have a mobile phone ? a) Yes b) NoQ2. Are you aware about telecommunications service? a) Yes b) No if yes, then which operators service do you use a) Tata Indicom b) Vodafone c) Airtel d) BSNL e) RelianceQ3.Which of the following services do you use of TataIndicom? a) Prepaid b) PostpaidQ4. Which services are more helpful to you while usingTata Indicom services ? 59
  60. 60. a) Call rates b) sms service c) Network d)Value added servicesQ5. Give your suggestions to help in services you better Name : ------------------ Age: ----------- Year Sex: Male/ Female Contact No. ---------- Signature : -------------- USAGE OF CELLPHONE 60
  61. 61. NO 14% YES 86%How long you are using Tata Indicom? 61
  62. 62. Never used 5> one month 20Two months 5One month 10 0 5 10 15 20 25 62
  63. 63. Services provided by the Tata Indicom GOOD 12%POOR 45% AVERAGE 43% 63
  64. 64. Rating of Existing Service Provider on the basis of prompt service provided to the customer 10% 15% 30% 20% 25% AIRTEL HUTCH RELIANCE TATA INDICOM MTNL 64
  65. 65. Best feature of your TATA INDICA All of the above 50 40 paisa/mt STD 0Free handset 0 Free 400 mts outgoing 0 Freeincoming/SMS 0 0 10 20 30 40 50 60 65
  66. 66. What problem do you find on your mobile? None of the Connectivity aboveAll of the 20% 14% above 16% SMS Roaming 40% 10% 66
  67. 67. CONCLUSIONThe promotional strategies, I got to learn at Tata Indicom gave me anin-depth knowledge about application of Marketing Strategies in realterms. I could understand better the role of different strategies atdifferent stages of evolution of business. Training at Tata Indicom gaveme ample opportunity to apply my skill and knowledge in dealing withcustomers, channel partners, managing office and also field work.Through keen observation, I found that all the Promotional Strategiesare inter-related with each other and there is a greater role of timingwhich mainly decides the success or failure of it in the long run. Theactions or strategies of the competitor are very keenly observed andcorrective action taken from time to time. The knowledge of theindustry and a regular update is quite essential to survive in thischanging business arena.Moreover, I got to understand that in today’s telecom market, thetariff plan must be so prepared that it can meet the requirements ofdifferent sections of the society.The company should roll-out ant future service only when it is fullysatisfied with the complete working of the same otherwise it will createnegative publicity as in the earlier stages of its commercial launch ofservices. 67
  68. 68. Employees also believe that integration of sales, marketing andcustomer services function is must for achieving better relationshipwith the customers.Despite industry skepticism and tightening budgets, insurers willcontinue to invest in CRM with the pre-requisite that vendors areable to demonstrate that significant returns can be achieved.Investments through 2002 and 2003 will be focussed on: smallerscale projects to leverage greater returns out of existing systems,the development of operational CRM to improve distributionstrategies, and the integration of core processes such as claims. Inthe highly competitive insurance landscape, the main objective ofinsurers is increasing the value of their customer base. CustomerRelationship Management (CRM) is pivotal in achieving this.A reliable, efficient Customer Relationship Management (CRM) solutionmakes it easy to build lasting customer relationships, gives executivesthe necessary resources to maximise their organisation.In service sector like telecom, it is the quality which is important buttoday’s market goes to those who can provide quality service ataffordable price. Here only the differentiator lies.Finally, I concluded that it is the human effort which is responsible forultimate successes or failure. There is no limit to success and, so, asit’s rightly said, 68
  69. 69. “If you think you can --- you can”. SWOT ANALYSISSTRENGTHS• Cost advantage• Current leaders in quality service• Largest distribution network• Ability to constantly innovate• Highly skilled workforce• Entrepreneurial zeal• Tata’s increased equity and market cap.WEAKNESSES• To prove credibility• Price pressures• Need for Government support• Awareness• Sales and Marketing 69
  70. 70. OPPORTUNITIES• To sustain passion and commitment• Tata’s market share increasing at other service provider expense. Thus opportunity to wipe it out.• Attain higher value services• Collaborative business needs to be explored• Vertical repeatable solutions.• Low penetration level in rural markets.THREATS• Foreign investment• Global trends moving from GPS to WLL.• Lack of global parity in telecom tariff• Other competition 70
  71. 71. • BIBLIOGRAPHY• Kotler, Philip; Amstrong, Garg. Principles of Marketing, Millennium Edition, Prentice Hall of India Ltd., New Delhi, 2002.• Tata Indicom. Sales guides• Business World• Times of India• The Economic Times• Web portals (customer helpdesk).• www.bsnl.com• www.mit.gov.in 71

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