Strategic marketing project on TATA DOCOMO


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Strategic marketing project on TATA DOCOMO

  1. 1. EXECUTIVE SUMMARYTATA DOCOMO is Tata Teleservices Limiteds TTSL telecom service on theGSMplatform arising out of the Tata Groups strategic alliance with Japanesetelecom majorNTT DOCOMO in November 2008. Tata Teleservices has received apan-India licenseto operate GSM telecom services, under the brand TATADOCOMO and has also beenallotted spectrum in 18 telecom Circles. TTSL andhas already rolled out its services in various circles.India is the fastest growingmajor mobile market in the world.Building on leadingposition in themarket,TTSL. Aims to capitalize on the growth potential to significantlyincreasethe subscriber base and market share. The telecom sector is increasing daybyday and the competition is getting more and tougher. Initially Tataservice wasproviding CDMA and after tieup with DOCOMO they come up in .
  2. 2. OBJECTIVES OF THE PROJECTThe objectives of this study/project as follows:  To identify the strategies Tata Docomo is following to grab the Indian market.  To study the schemes and services provided by TataDocomo.  To study thevarious tariffs charged by TataDocomo.  To study the unique features and services offered by TataDocomo.  To perform a SWOT analysis of TATADocomo.  To know the impact of promotional activities on the purchasing behavior of the buyer.  To study the Customer satisfaction level regarding the services provided by TataDocomo.
  3. 3. COMPANY PROFILE TATADOCOMO is Tata Teleservices Limiteds TTSL telecom service on the GSM platform arising out of the Tata Groups strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Tata Teleservices has received a pan- India license to operate GSM telecom services, under the brand TATADOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and has already rolled out its services in various circles. The launch of the TATADOCOMO brand marks a significant milestone Indian telecom landscape, as it stands to redefine the very face of telecoms in India. Tokyo-based NTT DOCOMO is one of the worlds leading mobile operators-in the Japanese market, the company is clearly the preferred mobile phone service provider with a50 percent market share. NTT DOCOMO has played a major role in the evolution of mobile telecommunications through its development of cutting-edge technologies and services. Over the years, technologists at DOCOMO have defined industry benchmarks like 3G technologies, as also products and services like the i-mode TM, mobile payment and a plethora of lifestyle-enhancing applications. Today, while most of the rest of the industry is only beginning to talk of LTE technology and its possible applications, DOCOMO has already started conducting LTE trials in physical geographies, not just inside laboratories! DOCOMO is also a global leader in the VAS (Value Added Services) space, both in terms of services and handset designs, particularly integrating services at the platform stage. The Tata Group-NTT DOCOMO partnership will see offerings such as these being introduced in the Indian market under the TATADOCOMO brand. TATADOCOMO has also set up a Business and Technology Cooperation Committee, comprising of senior personnel from both companies. The committee is responsible for identification of the key areas where the two companies will work together. DOCOMO, the world’s leading mobile operator
  4. 4. will work closely with Tata Teleservices Limited management and provide know-how on helping the company develop its GSM business.Despite being a late entrant, TataIndicom, TTSLs CDMA brand, has alreadyestablished its presence and is the fastest-growing pan-India operator.Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1xtechnology platform in India. Today Tata Teleservices Limited, along with TataTeleservices (Maharashtra) Ltd, serves over 37 million customers in more than320,000 towns and villages across the country offering a wide range of telephonyservices including Mobile Services, Wireless Desktop Phones, Public BoothTelephony and Wire line Services.HISTORYTata Teleservices Limited now also has a presence in the GSM space, through itsjoint venture with NTT DOCOMO of Japan, and offers differentiated productsand services under the TATADOCOMO brand name. TATADOCOMOarises out ofthe Tata Group’s strategic alliance with Japanese telecom major NTT DOCOMO
  5. 5. in November 2008. TATADOCOMO has received a pan-India license to operate GSM telecom services and has also been allotted spectrum in 18 telecom Circles. The company has rolled out GSM services in 14 of India’s 22 telecom Circles in a quick span of under six months. The company plans to launch pan-India operations by the end of FY 2009-10.TATADOCOMO marks a significant milestone in the Indian telecom landscape, and has already redefined the very face of telecoms in India, being the first to pioneer the per- second tariff option- part of its ‘Pay for What You Use’ pricing paradigm. Tokyo-based NTT DOCOMO is one of the world’s leading mobile operators-in the Japanese market, the company is the clear market leader, used by over 50% of the country’s mobile phone users.Corporate Philosophy With the aim of creating a new world of communications culture, we NTT DOCOMO will devote all the skills, know-how and energy towards the establishment of more "personal communication" with our customers that contribute to their heartfelt satisfaction. A New World of Communications Culture More personal communication Reliable access Real time access
  6. 6.  E-communicationOne-to-one “personal This gives birth to a new world of communications culture Freedom to enjoy communications anytime, anywhere with anyone Opening of endless lifestyle horizons To achieve this In order to create a world of more innovative and enriched communications, we will improve service quality, aggressively move forward with the development of various services. We will also research and develop a more advanced user-friendly communications interface, and at the same time we will provide these services and technologies to an ever expanding area. Customer Satisfaction:  Communications those are always ready when needed.  Capability to contact whomever, from wherever and whenever the customer desires.  Happiness that comes from heart-to-heart communications.  Bringing customers another step closer to realizing their dreams.  Responding to every customer with consideration, courtesy and thoroughness.  Providing products that give customers easy and convenient access to cutting-edge functionality. To achieve this  First and foremost, we will fulfill expectations of customers by fulfilling our response to their needs through improved service quality, building original networks, enriching functionality and expanding the service area. In addition, by providing an expanding and ever-improving selection of services at inexpensive rates, we will deliver satisfaction to a growing diversity of customers.
  7. 7.  Making the most of the talents of each individual in our company.  Respect for the individuality and sense of values that are unique to each person.  Enable internal corporate communication to flow free from vertical and horizontal organizational barriers.  Make the most of the ideas of each individual.  Foster a corporate culture that is not restricted by conventional thinking and systems.  Create a creative office environment that supports the fulfillment of the individual.  Fostering an "open" corporate culture that welcomes the ideas and views of the individual.  Evaluate personnel based on their merits.  Build a company that overflows with a challenging spirit. To achieve this By improving our system and programs for the enhancement of human resources and unifying our human resource development, we will empower each individual to exert their skills to the utmost of their capabilities and discover new potential. At the same time, we will strive to create a workplace that motivates individuals through measures such as improvement of the working environment and labor conditions and enhancement of health and welfare benefits.VISION We will leverage our strength in executing complex global scale projects to make leading edge information and communication services affordable by all individual consumers and business in India. We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders while enabling millions of India’s knowledge workers to deliver their services globally.
  8. 8. STATISTICS Third largest telecom network in the world. Error! Hyperlink reference not valid.Largest operator in INDIA is BSNL. INDIA’S mobile market is the fastest growing market in the world. World’s leading Japan based Telecom Company. Over the years technologies of DOCOMO has defined industry bench marks like 3G technology. It is the global leader in value added services. TATA telecom Incorporated in 1996. Tata Teleservices is the pioneer of the CDMA 1x technology platform in India. Deep involvement in the launch of 3G has inspired us to create an infrastructure that will allow people and all kinds of objects to communicate a wealth of information. Extended systems will link the home, the office and any number of other locations to bring greater convenience to all aspects of everyday life. For the future, it is our aim to incorporate information gathered by all five senses to achieve an array of services far beyond anything envisaged to date. NTT DOCOMO is already making rapid progress in such areas through a wide range of innovative research, building expertise and techniques as we move forward towards exciting new business opportunities. Innovating dreams Our goal is to create a broad array of exciting new services. Services that will bring undreamed-of convenience to people everywhere. In addition to Audio Barcodes and 3D Display System introduced in this website, cutting edge technologies beyond the imagination are already under development. These include a system that makes distant objects feel like an extension of the human body for ultra realistic experiences, and advanced chips that will allow items such as household appliances to communicate. Whats more, we are actively realizing 4G technology such as MIMO (Multiple-Input-Multiple-Output) multiplexing
  9. 9. technology and a wireless access communications system, as well as contributing to the establishment of specifications for global standardization. Researchers at NTT DOCOMO have a clear vision of the future. A future that will unite all of the above advances and many more, to create a world where people can communicate at a higher level, regardless of time and space Telecom industry in India is dominated by major companies like Airtel, Vodafone in GSM services. Competition is very intense due to low differentiation. India ended March this year with 391.76 million mobile lines and teledensity is around 36.98. Airtel enjoys 33.9%, Idea 11.6% Vodafone 19.6 and Tata CDMA has 7.2% of market share respectively. PRICE It having attractive tariff plan:TATADOCOMO having 1paisa /sec it is applicable for both prepaid and postpaid.Disruptive Innovation in the Indian Telecom Industry by TataDocomoWikipedia defines disruptive innovation as an innovation that improves aproduct or service in ways that the market does not expect, typically by beinglower priced or designed for a different set of consumers.Indian Telecom space was “Disrupted” by TataDocomo when they came out witha ‘1 paisa per second’ tariff.We have earlier seen how Reliance India Mobile changed the mobile industry bycoming up with the lowest tariff in the beginning of this decade. The call chargeswere around Rs 2-3 per minute and because of Reliance this was brought downto around Re 1 per minute.
  10. 10. TataDocomo was the next one to employ disruptive innovation in the Indianmobile industry. Currently the game is not played on the price front but Valueadded services front, which is evident from the advertisements of Airtel(Madhavan and VidyaBalan) and Vodafone (Zoozoos) in the past.If Aircel is redefining how telecom operators approach value added services andGPRS in India, TataDocomo is doing its bit to change billing practices.The joint venture between Tata Teleservices and Japanese telecom major NTTDocomo officially began rollouts with a plan to invest $2 billion for its pan-IndiaGSM services. Customer SatisfactionThe 21 century belongs to the service sector. The customer of yesteryear was asilent person who uncomplainingly purchased the goods from the market place.There is a new customer emerging today. Customer satisfaction can be definedas, customer satisfaction is the feeling derived by the consumer when hecompares the actual performance of the product’s with the performance that heexpects of it.The measurement of the customer satisfaction typically begging when acompany realizes that their customer s is the people, who provide the revenuesthat, hopeful, will cover expenses. Most companies start by establishing acustomer satisfaction baseline. Then they target year by year improvement.Understanding customer requirement and delivering superior quality goods andservices to achieve composer satisfaction lead to the retention and growth ofthe customer.General Idea about the satisfied customer:Satisfaction is a persona’s feeling of the pleasure or disappointment. It isresulting from comparing a product’s perceived performance with his or herexpectations from it. Satisfaction is more of an emotional concept. Today
  11. 11. organization are aiming at high satisfaction rather than at customer delightbecause customers who arejust satisfied still find it easy to switch over when a batter offers comes along.Those who are highly satisfied are much less ready to switch over. Highsatisfaction or delight creates an emotional bound with the brand and customerstarts looking at an offering emotionally and just rationally.The aim of marketing is to meet and satisfy target customers needs and wantsbut knowing customer is never simple. Customer may state their needs andwants but act otherwise. They may not be in touch with their deepermotivations. They may respond to influential to change their mind at the lastminute. Some of today’s most successful companies are raising expectation anddelivering performances to match. These companies are aiming at TCS- Totalcustomer Satisfaction.Increasing competition (whether for-profit or nonprofit) is forcing businesses topay much more attention to satisfying customers. In a competitive marketplacewhere businesses compete for customers, customer satisfaction is seen as a keydifferentiator and increasingly has become a key element of business strategy.Customer Loyalty:  These four factors will greatly affect your ability to build a loyal customer base:  Products that are highly differentiated from those of the competition. Higher end products where price is not the primary buying factor. Products with a high service component. Multiple products for the same customer. Loyal Customers and Loyal Workforces
  12. 12. Building customer loyalty will be a lot easier if you have a loyal workforce not at all a given these days. It is especially important to retain those employees who interact with customers such as sales people, technical support, and customer- service people. Many companies give a lot of attention to retaining sales people but little to support people. The increasing trend today is to send customer service and technical support calls into queue for the next available person. This builds no personal loyalty and probably less loyalty for the firm. Before going this route, be sure this is what your customers prefer. Instant Feedback: Recently, many organizations have implemented feedback loops that allow them to capture feedback at the point of experience. For example, National Express, one of the UKs leading travel companies invites passengers to send text messages whilst riding the bus. This has been shown to be useful as it allows companies to improve their customer service before the customer defects, thus making it far more likely that the customer will return next time.Listen to your customers: Is there anything more exasperating than telling someone what you want orwhat your problem is and then discovering that that person hasn’t been payingattention and needs to have it explained again? From a customer’s point of view, Idoubt it. Can the sales pitches and the product babble. Let the customer talk andshow them that you are listening by making the appropriate responses, such assuggesting how to solve the problem.
  13. 13. MARKETING STRATEGY TataDocomo appears to be banking heavily on its tariff plans the company is offering a 1 second pulse instead of the usual 1 minute pulse that other telecom operators are offering. This means that consumers are charged on a per second basis, instead of a per minute basis, and end up saving money on unused seconds. A nifty little application “How much can you really save” on Docomo’s website explains how this works. Rs. 0.01/second is a marked change from the Re 1/min and Rs. 0.49/min charges that usually applies. MARKETING MIX 4P’S OF MARKETING MIX:  Product  Price  Place  Promotion. PRODUCT: TATADOCOMO having good range of services.TataDocomo provides both postpaid and prepaid services. TataDocomo having good quality network which provides clarity in voice. PRICE: It having attractive tariff plan: TATADOCOMO having 1paisa /sec it is applicable for both prepaid and postpaid. PLACE: It is having good range of channels of distribution: As Tata already exist in
  14. 14. this field of telecommunications as TataIndicom. It has wide range of channels ofdistribution to sell TATADOCOMO services.PROMOTION: Advertising: TATADOCOMO following different style of advertising pattern inTV ‘and newspapers. Due to that reason it was reaching public very fast.TATADOCOMO PRICING STRATEGYTataDocomo appears to be banking heavily on its tariff plans the company offersa 1 second pulse instead of the usual 1 minute pulse that other telecomoperators were offering. This means that consumers are charged on a persecond basis, instead of a per minute basis, and end up saving money on unusedseconds. A fifty little application “How much can you really save” on Docomo’swebsite explains how this works. Rs. 0.01/second is a marked change from theRe 1/min and Rs. 0.49/min charges that usually apply.
  15. 15. Now while this plan might sound unique, it isn’t that it hasn’t been triedbefore back in 2004, TataIndicom had launched 1 second pulse plans, whichgoing by their current plans, appears to have been shelved.At present, TataDocomo has launched voice portals, 24-hour music, cricketcommentary and voice chat, apart from offering free Missed Call Alerts andVoiceMail. Interestingly, voice based services are also being priced with a per-second-pulse: 24 hour music and voice chat are priced at Rs. 0.02/second. CallerTune search service ‘Genie’ is also being priced at Rs. 0.02/second. This is amarked change, again, from the per minute pricing, and can offer consumerscheaper options.An initiative that has taken the service provider industry by stormThe pay per second model has really paid off well for the latest entrant in theIndian GSM space, Tata-Docomo. The new pricing strategy from Tata-Docomohas changed the rules of the GSM game, which is dominated by AirTel andVodafone. Tata-Docomo also launched its first mobile handset in September2010.Mobile pricing innovation – TataDocomo now charges per website for MobileBrowsing!This is surely a first world over – TataDocomo have gone ahead and launched aninnovative mobile Internet offering which allows users unlimited usage of theirfavorite websites on mobile for a fixed cost.TataDocomo has been forefront in coming up with various attractive pricingschemes, especially, in the pay-per-use paradigm. They were first to introducepay per second billing on calls, which now is followed by every mobile serviceprovider. They followed it with pay-per-minute and pay-per-call pricing plans aswell which has made them one of the fastest growing Mobile companies in India.The new pay-per-website offering however, takes it to a complete different leveland unheard of pricing strategy. This is a very thoughtful strategy and somethingwhich has potential to growth rapidly. TataDocomo pricing strategy.
  16. 16. Pay per site offer two combination:Those only interested in single websites need to pay Rs 10 per siteThose with multiple site browsing needs can opt for a combo pack at just Rs 25per month.Customers have a bundle of options within various categories of socialnetworking sites (Facebook, Twitter, and Linked In, Orkut), mail options (Gmail,Yahoo, Rediff) and chat messengers (GTalk, Yahoo! Messenger, Nimbuzz).Having said this, there is also a caveat – If you thought it was valid for unlimiteduse…it is not.TataDocomo pay per site plan categorizes each service under 2 different genres– Social Networking Site and Emailing & Instant Messaging. Each site under thisgenre is priced at Rs. 10/- bundled with 200 MB free data usage valid for 30 days,post which customers will be charged at 1p/kb. There are also 2 Combo optionsSNS Combo Pack and Emailing Combo Pack and each Combo Pack is priced at Rs.25/- bundled with 500 MB free data usage post which the customers will becharged 1p/kb.We have been quite impressed the way TataDocomo have gone about theirinnovative pricing models as well as marketing strategies.“Per Character” SMS PricingOn 8th September 2009, the GSM branch of the Indian carrier Tata introduced anovel pricing strategy for text messaging. Under the brand “Diet-SMS“, Tata-DOCOMO bills its customers “by-the-character”, rather than on a per messagebasis.It is a very attractive marketing scheme, since many wireless subscribers, almostby habit, tend to pepper their text messages with abbreviations and acronyms.Under the new plan, Tata-Docomo charges “one paisa per character”. Forexample, a text which reads “tnx” (for “thank-you”) is charged at 3paise insteadof the normal sms charge.
  17. 17. The ImpactTataDocomo has gathered significant market share, owing to its pricingstrategies.Existing mobile operators are matching the price and the clear winners are thesubscribers since all the competition is sending the prices downhill.TataDocomo pricing strategy.
  18. 18. ADVERTISING MEDIA CHANNELS India TataDocomo, the youngest among telecom players in India to offerGSM, is Presently banking on its services to garner visibility and a share in thetelecom pie. The launch of TataDocomo also announced the intention of thebrand to associate with the thought do. TataDocomo, for the first time in thecountry, offered pay-per-second billing; though other telecom providers havefollowed suit since. The company has carried out a few adverts that highlight thebrands unique features and some other topical advertising during GaneshChaturthi and Diwali. The latest from the GSM provider is the FriendshipExpress TVC. The ad opens inside train, where everyone is doing their own thing.A couple of the travelers dont like the solemn mood and start humming theDocomo tune. Slowly and steadily, others pitch in and soon most of the train issinging along. The ad ends with the super, Why walk alone when we can dancetogether.Cutting through the clutter that the Indian telecom landscape findsitself in with customers forced to jostle with confusing and complicatedproducts, services and tariff plans Tata DOCOMO is ‘Doing the New’ again, withthe launch of its new brand campaign, aptly titled ‘Keep It Simple’. TataDOCOMO’s unique Keep It Simple Campaign is in a form of a stand-up comedyshow with many episodes, which will be aired during the course of this IPLseason. It focuses largely on how Tata DOCOMO simplifies the telecomexperience, and hence the consumer’s life, by providing differentiated productsand services. Each individual advertisement starts by illustrating a complexity inthe category, and presents the Tata DOCOMO product and/or service as a meansof simplifying things. This campaign is simple, captures the various moods ofRanbirdepicting those of Tata DOCOMO
  19. 19. Advertisement strategyTataDOCOMO ropes in RanbirKapoor as brand ambassadorNEW DELHI: TataDocomo, the GSM brand of Tata Teleservices (TTSL), todayappointed Bollywood star RanbirKapoor as its brand ambassador.The company has inked a two-year contract with Kapoor and will roll out varioustelevisions, print and outdoor campaigns with the actor, starting with theupcoming Indian Premier League (IPL) tournament."We think TataDocomo is an inspirational brand and so is the charm andpersonality of RanbirKapoor, so it is a great match. We will leverage him invarious campaigns to build the brand further," TTSL Head Corporate MarketingGurinder Singh Sandhu told PTI.TataDOCOMO will undertake various marketing initiatives with RanbirKapoor,including television commercials, print campaigns, outdoors and retail frontdisplays, he added.The company will introduce its new campaign during the IPL tournament, whichkicks off on AprilAccording to media analysts, TataDocomo is expected to spend in excess of Rs 50crore for the 360-degree campaign during the IPL season.Other telecom operators like BhartiAirtel, Idea Cellular and RelianceCommunications have also appointed Bollywood stars as their brandambassadors.While Airtel has worked with Shahrukh Khan, Saif Ali Khan and KareenaKapoor,Idea Cellular has AbhishekBachchan as its ambassador. Reliance Communicationshas worked with HrithikRoshan.Vodafone, on the other hand, has found success with its Zoozoos, the eggshaped cartoon characters featured in its ad campaign.
  20. 20. Market Competitors of TataDocomo:  Airtel  Reliance Communication  BSNL  Idea  Aircel  Vodafone
  21. 21. SERVICES & NETWORK AVAILABLE  Currently, TataDocomo mobile services available in these following circles:  Bihar & Jharkhand  Tamil Nadu  Orissa  Andhra Pradesh  Karnataka  Kerala  Kolkata  Maharashtra & Goa  Madhya Pradesh  Chhattisgarh  Haryana  Chennai  Eastern Uttar Pradesh  Western Uttar Pradesh  Punjab  Rajasthan ,Recently LaunchedAandRest of West Bengal, Recently Launched.
  22. 22. PLANS Tata DOCOMO Daily Plans. When every day is different, why have a fixed plan? A brand new day calls for a brand new plan. Choose from Daily plans on local, STD, Night calling, GPRS & Music and make your own Daily Plan.Benefits:Anytime purchaseMinimal costEase of processHow to subscribe:Dial *141# and choose from Daily plans on local, STD, Night calling, GPRS &Music.Product options:-
  23. 23. Daily Rental Packs (Rs.2) Weekly Rental Packs (Rs.10) All local at 1p/2sec All local at 1p/2sec STD at 3p/4sec STD at 3p/4sec Local Night On-net at 1p/10sec Local Night On-net at 1p/10sec Local On-net at 1p/6sec Local On-net at 1p/6sec USA/Canada & UK(F) at 3p/sec USA/Canada & UK(F) at 3p/sec Gulf at 11p/sec Gulf at 11p/sec All local & National SMS at 1p All local & National SMS at 1p Talk More Night Talk 30 local minutes @ Rs.5 on Now converse through the night. Tata DOCOMO Network. 60 Free Local Night minutes on 30 local minutes @ Rs.12 across Tata DOCOMO Network. Networks. 30 Free local On-net minutes @ Rs.3 30 local/National minutes @ Rs.14 20 Free local minutes @ Rs.5 10 Local/National minutes @ Rs.5a. GPRS World Calling 10MB Free Browsing @ Rs.5 only. 10 minutes to USA/Canada @ Rs.20 5 minutes to USA/Canada @ Rs.10
  24. 24. a. Entertainment a. Cricket 15 minutes FREE music @ Rs.5 Cricket Alerts @ Rs.5/day Terms and Conditions: Daily implies active till 12 midnight on the same day of pack activation. Ex: A subscriber activated the pack on 25th Feb10 then the pack with daily validity will expire at midnight of 25th Feburary10#. In case on night packs the expiry of the pack will be 7 am of the next day of activation of the pack. Ex: A subscriber activated the night pack on 25 th Feb10 then the pack with daily validity will expire at 7 am of 26 th Feburary10#. The pack will get activated maximum within 2 hrs of request receipt on the system. You will get an automated confirmation SMS once the same is configured on our systems. You can activate multiple packs in a day. Competitor Analysis The competition has intensified the past few months with new players and schemes coming in. There has never been a better time for the customer to get a mobile phone connection There are at least six if not more operators to choose from in ever circle. In June 09, TATA DOCOMO broke the old system of tariff by introducing per second billing system. As soon as they did this, the other followed suit with price cuts everywhere. Suddenly the idea of calls being free was not so outrageous. The prices were reduced to such an extent that the viability of the business was in questions. The competitive environment of TATA DOCOMO can be looked at from the following perspectives Market share
  25. 25. The government issued fresh licenses in 2008.As a result of this the market gets crowded though incumbents‟ still hold larger market shares are shown above. However a point to note is that the new players have lower entry costs with very deep pockets. They also have no legacy issues like the older players and hence are more adept to changes market situations. The cost of infrastructure has reduced dramatically due to the market growth and DOCOMO had an advantage here.MARKET CAPITALISATION:
  26. 26. As profits margins are becoming thin, the market capitalization of listed telecom companies has fallen. Though there have been some signs of recovery AirtelvsTataDocomo The equal competitors are coming up with their new tariffs, plans, special packs and their varying services to prove themselves to be much competitive and trying to anchor them firmly in this mobile sector. Currently the TataDocomo came up with its services with an all new tariff scheme of pay per second which has brought out a massive revolution in the market. On 30th Oct the leading mobile service provider BhartiAirtel launched their much awaited “Pay per Second” tariff all throughout India. The tariff comparison with Airtel and TATADocomo is as follows, Airtel with its inception on 2001 renders number of customers but their tariff, call rates to different network makes confusion and remains unstable. But Docomo’s 1p/sec throughout India makes consumers to keep track of their account and controls expenses. Airtel has kept different SMS charges even in their Pay Per Second plan with local sms being charged at Re.1 and National sms at Rs.1.50, whereas Docomo introduced SMS charges based on the number of characters. No recharges are needed to opt for per second calling after one year.
  27. 27.  Package activation of Airtel ranges from Rs.64 to Rs.99 and varies from circle to circle. Docomo’s does not charge anything extra for activating the per second pack since the tariff plan by default is on per second basis. The Airtel tariff calculation is hard ranging from 1p/sec to 1.2p/sec , but 20% higher to other operators whereas A2A calls are kept at 1p/sec and that to other operators are charged at 1.2p/sec. But TataDocomo is offering a limited period offer of STD calls at 1p/sec. But Airtel is older than Docomo so it has compact network links than Docomo , so this is the place where Docomo has to establish itself. Meanwhile it is found that Docomo with both GSM and CDMA network added over ‘4 million’ subscribers in September, beating market leader BhartiAirtel yet again. Airtel had 2.5 million new users in September. The battle has just begun as new operators are still to join the war. Do have your say what you edict is going to be ?
  28. 28. SWOT ANALYSIS STRENGTH WEAKNESS OPPORTUNITIES THREATSSTRENGTHS:  First to introduce seconds’ tariff plan (seconds pulse)  Good brand image of Tata services  Having large variety of plans  Plans are affordable by any common person.WEAKNESS:  Signal strength.  Postpaid connections are not available as of now.  Customer services are not satisfactory.  Concentrating only on rural areas. OPPORTUNITIES:  Have a great opportunity to expand its services.  To introduce any new plans for internet users.  Introduce 3G compatible services.
  29. 29.  To introduce new combined plans like, SMS, Internet, Calling integrated offers.THREATS: If signal strength is not increased it may lead to change in the network service by the customers. Tata has to clarify whether this 1ps/sec will continue till its lifecycle. Heavy competition from all other network providers.
  30. 30. INTERNAL ENVIRONMENTAL ANALYSIS OF TATA DOCOMO Brand Image of Tata and Docomo This is another important factor which proves as a major strong point for TataDocomo. Tata DOCOMO is Tata Teleservices Limiteds (TTSL) telecom service on theGSM platform-arising out of the Tata Groups strategic alliance with Japanesetelecom major NTT DOCOMO in November 2008. Both of these are Big brandnames in their respective countries; viz. Tata in India and NTT Docomo in Japan.Tokyo-based NTT DOCOMO is one of the worlds leading mobile operators-in theJapanese market, the company is clearly the preferred mobile phone serviceprovider in Japan with a 50 per cent market share. Variety of plans on offer TataDocomo focuses not only on the price but also makes sure that the variety ofservices offered is not compromised. There are a number of tariff plans for post paycustomers as well as for prepay customers.WEAKNESSES OF TATA DOCOMOOne major weakness of this organization would be the lack of adequateinfrastructure to service the subscribers that it may initially achieve owing to thelow prices. The key issue would be network coverage, where the customers wouldprefer that a call go through, or not be disconnected, than save Rs. 0.5-Re.1 on acall. At the same time, since operators have so far been focused on the “land-grab”...MORALE OF EMPLOYEES IN AN ORGANISATIONGood MoraleMorale is a way of describing how people feel about their jobs, employers andcompanies, and those feelings are tied to the behaviors and attitudes thatemployees exhibit in the workplace. When employees have good morale, they feelcommitted to their employers, loyal to their jobs and motivated to be productive.They work harder, produce more, meet deadlines and give it their all.Low MoraleAccording to BNET, a website that offers business management advice, low moraletakes a toll on employee performance and productivity. Employees become lessmotivated to work, less committed to their employers, exhibit an attitude ofindifference and are absent more often. Companies pay the consequences of lowmorale, as less work gets done and time and money are wasted. Suchcharacteristics may not always indicate low morale. Be sure that you dontmisdiagnose employees as having low morale when they may just be having a badday. Low morale is indicated by a pattern of these behaviors and attitudes overtime.MANAGEMENT SYSTEM OF TATA DOCOMOThe goal of the Management System and OrganisationOptimisation is to introducea new organisation and management system at the level of a selected company or a
  31. 31. group of companies (holding), as the case may be. The solutions standard subjectmatter is the conceptual preparation of the clients new organization and theimplementation thereof, which is broken down into detailed organisational andfunctional patterns including job structure and category. Other steps include apreparation of the companys (holding) management rules, setting the basicfunctions, competencies, powers and responsibilities for individual managementlevels of a company (holding), and the preparation of a companys (holding) basicinternal policies.ORGANISATIONAL CULTURE OF TATA DOCOMOIn TATA DOCOMO the organizational culture is the workplace environmentformulated from the interaction of the employees in the workplace. Organizationalculture is defined by all of the life experiences, strengths, weaknesses, education,upbringing, and so forth of the employees. While executive leaders play a large rolein defining organizational culture by their actions and leadership, all employeescontribute to the organizational culture.EXTERNAL ENVIRONMENTAL ANALYSIS-Political-• Not favourable in terms of Recent spectrum allocation {2G-scam}.• Political lobbying is prevalent and many companies are taking advantage ofit.It has become ubiquotious and creates lots of hassels for the firms.• Due to 2G Scamtherre will be tighter control and auditing system.• Also UPA will bring some new changes as the social pressure is so high{Annahazaremovemenet}.Some new guidelines are coming up.• TATA may get truly benefitted by their inherent policy of no form ofcorruption.TATADocomo should be ready for a patient game so that this politicaluncertainity gets settled.• ECONOMICAL-• Teledensity has improved from under 4% in March 2001 to 53% by the endof March 2010.Cellular telephony has emerged as the fastest moving businesssegment.• Due to high growth rate,hgherteledensity and sustainable domestic demandcellular telephony will surely reamain in the pink of health in India.• Unexplored rural market.Usage may be low but volume can be high.• Due to immense competition and lowest call rates in the world there arewafer thin margins as well.SOCIAL-• Youth population is increasing,adoption to new technologies has becomedaily routine,more litracy rate and more purchasing power of Domestic consumersmakes this industry more than attractive.• Youth will control the economy within next 10 years and companies need tomeet their ever changing and newest deamands.• Plans and tariffs need to be updated according to current demand and socialhabbits.• Devolopment of new apps and cool value added services are in demand.
  32. 32. TECHNOLOGY-• Tata Docomo is enjoying the distinct advantage of the backing up of NTTDocomo which proven innovative technology.It is first in Inidia to roll out 3Gservices in India resulted a growth of 30%-40% in VAS and also planning to bring in3G enabled mobile phones at an affordable price.• It should try to capitalize the capabilities of Wimaxtechnologies,a high speeddata connection,which is supposed to have 12 million subscribers by 2012.• As 3G technologies has made in roads in India there is a growing emphasison speed and coverage.• ENVIRONMENTAL-• People have growing concern about the kind of damage cellular wave do tothe brain and other parts of the body.• TATA Docomo should be the first to acknowledge the concern of the peopleby innovating ways that that can make the waves less harmfull.•• LEGAL-• Recently due to alligations and speculations surrounding the 2G Spectrumsale many service providers are in legal doldrums and have to face wrath of CBI andjudiciary.• Whereas TATA Docomo has benefitted from his fare policies,it should par itsback for this and march on with the progress it has seen with full vigour,STP ANALYSIS-
  33. 33. Recommendations The availability of recharge voucher should be made available when required by the customers. As this give the good impression about the company. The network coverage is another asset for the company’s image, which needs to be preserved in future. The overall image of the customer care services was found to be good but with some loopholes related to delays in problem solving. The company should be more prompt in handling the queries and problem of the customer, which is vary essential for the prepaid card so as to retain the customers with the company in future. The customer care executives should be more efficient in handling the customer and also more friendly and polite their conversation, while dealing with the customer.
  34. 34.  After sales service is required to be maintained properly, which is not up to the mark Call rates is affordable so it should be maintained at this level. Many people are using mobile, but majority of them are not aware of the technology they are using. Manytines it happens that a person doesn’t know which technology satisfied his need. Hence awareness should be created among them regarding advantages and differences in the technology. Supplementary facilities like call wait, call forward, call hold, call divert, call conference should be made more effective to attract customers.
  35. 35. CONCLUSION After analysis and interpretation of the data it can be concluded thatTataDocomo is providing a broad range of various schemes ranging frominternational calling to hello tunes. This is the critical factor to attract variouscustomers. Wide range of schemes is also leading to increase in number ofcustomers with rapid pace for TataDocomo. Tariff charges introduced by the TataDocomo are found to be cheaperthan other services. TataDocomo has emerged as a giant killer due to their tariffplans and heading towards the position of dominator. TataDocomo is providing some unique features and services like payper second, SMS per character, pay per site plans that are making them beingdifferent from their competitors. Awareness of the TataDocomo is spreading widely among people dueto their promotional activities. Buyers are now insisting for cheaper plans orthreatening to opt out. Majority of the customers are satisfied with the services of the TataDocomo and they are not ready to switch on to other service providers.