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Final submission

  2. 2. A Project Report onJOINT VENTURE WITH RESPECT TO TATA DOCOMO Submitted By SIDDHESH GOAD T.Y.B.M.S Semester V 2012 - 13 Submitted To University of Mumbai Vidyalankar School of Information Technology (Affiliated to University of Mumbai) Vidyalankar Marg, Wadala (E), Mumbai 400 037 2
  3. 3. VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY (Affiliated to Mumbai University) Certificate This is to certify thatMr./Ms. _________________________________ of B.M.SSemester _____ has undertaken & completed the project work titled______________________________ during the academic year__________ under the guidance of Mr./Ms. _______________submitted on _________ to this college in fulfillment of the curriculum ofBachelor of Management Studies, University of Mumbai. This is a bonafide project work & the information presented is True &original to the best of our knowledge and belief. PROJECT COURSE EXTERNAL PRINCIPAL GUIDE CO-ORDINATOR EXAMINER 3
  4. 4. DECLARATION Vidyalankar School of Information Technology (Affiliated to University of Mumbai) Vidyalankar Marg, Wadala (E), Mumbai 400 037I SIDDHESH GOAD of Vidyalankar School of Information Technology, T.Y.B.M.SSemester V hereby declare that I have completed the project on JOINT VENTURE WITH RESPECT TO TATA DOCOMO in academic year 20012 – 13. The information submitted is true and original to the best of my knowledge. Signature of the Student, SIDDHESH GOAD 4
  5. 5. ACKNOWLEDGMENT I hereby acknowledge all those who directly or indirectly helped me to draft theproject report. It would not have been possible for me to complete the task without theirhelp and guidance First of all I would like to thank the principal Dr. Rohini Kelkar Madam and thecoordinator Prof. Vijay Gawde Sir who gave me the opportunity to do this project work.They also conveyed the important instructions from the university from time to time.Secondly, I am very much obliged of Prof. Ms Archana Dimble-Bagal for givingguidance for completing the project Then I must mention the person who co-operated with me. They not onlyrendered time out of their busy scheduled but also answered my queries withouthesitation. He/ She gave me information on their system of working in their organizationand told me how Promotional Strategies are done in their organization. Last but not the least, I am thankful to the University of Mumbai for offering theproject in the syllabus. I must mention my hearty gratitude towards my family, otherfaculties and friends who supported me to go ahead with the project. 5
  6. 6. EXECUTIVE SUMMARY JOINT VENTURE A joint venture is generally understood as technical and financial collaboration either in the form of Greenfield projects, take- over or alliances with existing Companies. In India, no legal definition as such has been given to joint ventures. Indian joint ventures usually comprise two or more individuals/companies, one of whom may be non-resident, who come together to form an Indian private/public limited company, holding agreed portions of its share capital. A joint venture agreement primarily provides for the manner in which the shareholders of the joint venture company may transfer or dispose of their shares. It is also commonly referred to as a shareholders‘ agreement. Telecommunication sector. Telecommunication Industry is basically complex and fastest growing industry. The industry observes the maximum competition in terms of customer retention and better service. TATA DOCOMO‘s Service Point model offers the solution to the problem. The project covers the operational aspects of operating the large number service points smoothly and 3G auctions, the various activities that TATA DOCOMO plans for the customer satisfaction and customer delight. 6
  7. 7. INTRODUCTION TO THE STUDYAim of doing the project:  To Implement the management study and understand them better in the way of our project.The objectives of this study/project as follows:  To study the schemes and services provided by Tata Docomo.  To study the various tariffs charged by Tata Docomo.  To study the unique features and services offered by Tata Docomo.  To perform a SWOT analysis of TATA Docomo.  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 Tata Docomo.RESEARCH METHODLOGYPRIMARY DATA:  Data collected from sample of 200 people in Ratnagiri involved in different professions by questionnaire method.  Data collected by visiting Tata Docomo Retail Shop (Roopraj Telecom).SECONDARY DATA:  Data Collected from Internet.  Information received from various pamphlets, brochures and journals of Tata Docomo. 7
  8. 8. LIMITATION  Sample size was restricted to Ratnagiri city as it was difficult to approach people outside that because of time constraint. So sample size was limited.  Improper decision- many respondents could not have sufficient time to answer/ fill the questionnaire.  Inadequate information- some of the questions were not answered/ filled properly or accurately.  Project study was conducted only for 3 months June to September 2011Limitation of the study:  The study was limited to Tata Docomo prepaid mobile user only.  The study was limited only to know the level of satisfaction of the prepaid Tata customer and no further action was taken to make them satisfied if they were not satisfied.  The study was limited to only few days so each and every aspect of satisfaction could not be covered.  The management did not disclose the confidential data. 8
  9. 9. INDEX / Topic Page No. 1. Company Profile 2. History 3. Customer Satisfaction 4. Marketing Strategy 5. Availability 6. Plans 7. Competitors Analysis 8. SWOT Analysis 9. Growth of Telecom 10. Advertising and its Impact for Tata Docomo 11. Buying Preference Celebrity Promotion 12. Article By Times Of India 13. Statement Of The Problem 14. Technology Acceptance Model (TAM) 9
  10. 10. 15. Data Analysis16. Case Study17. Findings18. Recommendation19. Conclusion20. Annexure21. Bibliography 10
  11. 11. COMPANY PROFILE TATA DOCOMO is Tata Teleservices Limiteds TTSL telecom service onthe GSM platform arising out of the Tata Groups strategic alliance with Japanesetelecom major NTT DOCOMO in November 2008. Tata Teleservices has received apan-India license to operate GSM telecom services, under the brand TATADOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and hasalready rolled out its services in various circles. The launch of the TATA DOCOMO brand marks a significant milestoneIndian 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 theJapanese market, the company is clearly the preferred mobile phone service providerwith a 50 percent market share. NTT DOCOMO has played a major role in the evolution of mobiletelecommunications through its development of cutting-edge technologies andservices. Over the years, technologists at DOCOMO have defined industrybenchmarks like 3G technologies, as also products and services like the i-mode TM,mobile payment and a plethora of lifestyle-enhancing applications. Today, while mostof the rest of the industry is only beginning to talk of LTE technology and its possibleapplications, DOCOMO has already started conducting LTE trials in physicalgeographies, 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 theplatform stage. The Tata Group-NTT DOCOMO partnership will see offerings such asthese being introduced in the Indian market under the TATA DOCOMO brand. TATA DOCOMO has also set up a Business and Technology CooperationCommittee, comprising of senior personnel from both companies. The committee isresponsible for identification of the key areas where the two companies will worktogether. DOCOMO, the world‘s leading mobile operator will work closely with Tata 11
  12. 12. Teleservices Limited management and provide know- how on helping the companydevelop its GSM business. Despite being a late entrant, Tata Indicom, TTSLs CDMA brand, has alreadyestablished its presence and is the fastest-growing pan-India operator. Incorporatedin 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x technologyplatform in India. Today Tata Teleservices Limited, along with Tata Teleservices(Maharashtra) Ltd, serves over 37 million customers in more than 320,000 towns andvillages across the country offering a wide range of telephony services includingMobile Services, Wireless Desktop Phones, Public Booth Telephony and Wire lineServices. 12
  13. 13. HISTORY Tata Teleservices Limited now also has a presence in the GSM space,through its joint venture with NTT DOCOMO of Japan, and offers differentiatedproducts and services under the TATA DOCOMO brand name. TATA DOCOMOarises out of the Tata Group‘s strategic alliance with Japanese telecom major NTTDOCOMO in November 2008. TATA DOCOMO has received a pan-India license tooperate GSM telecom services and has also been allotted spectrum in 18 telecomCircles. The company has rolled out GSM services in 14 of India‘s 22 telecom Circlesin a quick span of under six months. The company plans to launch pan-Indiaoperations by the end of FY 2009-10.TATA DOCOMO marks a significant milestonein the Indian telecom landscape, and has already redefined the very face of telecomsin India, being the first to pioneer the per- second tariff option-part of its ‗Pay for WhatYou Use‘ pricing paradigm. Tokyo-based NTT DOCOMO is one of the world‘s leadingmobile operators-in the Japanese market, the company is the clear market leader,used by over 50% of the country‘s mobile phone users. 13
  14. 14. 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 E-communication One-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 14
  15. 15. To achieve this In order to create a world of more innovative and enriched communications, wewill improve service quality, aggressively move forward with the development ofvarious services. We will also research and develop a more advanced user-friendlycommunications interface, and at the same time we will provide these services andtechnologies 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. 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. 15
  16. 16.  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 humanresources and unifying our human resource development, we will empower eachindividual to exert their skills to the utmost of their capabilities and discover newpotential. At the same time, we will strive to create a workplace that motivatesindividuals through measures such as improvement of the working environment andlabor conditions and enhancement of health and welfare benefits. VISION We will leverage our strength in executing complex global scale projectsto make leading edge information and communication services affordable by allindividual consumers and business in India. We will offer unparalleled value to createcustomer delight and enhance business productivity. We will also generate value forour capabilities beyond Indian borders while enabling millions of India‘s knowledgeworkers to deliver their services globally. 16
  17. 17. STATISTICS Third largest telecom network in the world. 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 technology and a wireless 17
  18. 18. 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 tele density 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: TATA DOCOMO having 1paisa /sec it is applicable for both prepaid and postpaid 18
  19. 19. Disruptive Innovation in the Indian Telecom Industry by Tata Docomo Wikipedia defines disruptive innovation as an innovation that improves aproduct or service in ways that the market does not expect, typically by being lowerpriced or designed for a different set of consumers. Indian Telecom space was ―Disrupted‖ by Tata Docomo when they cameout with a ‗1 paisa per second‘ tariff. We have earlier seen how Reliance India Mobile changed the mobileindustry by coming up with the lowest tariff in the beginning of this decade. The callcharges were around Rs 2-3 per minute and because of Reliance this was broughtdown to around Re 1 per minute. Tata Docomo was the next one to employ disruptive innovation in theIndian mobile industry. Currently the game is not played on the price front but Valueadded services front, which is evident from the advertisements of Airtel (Madhavanand Vidya Balan) and Vodafone (Zoozoos) in the past. If Aircel is redefining how telecom operators approach value addedservices and GPRS in India, Tata Docomo is doing its bit to change billing practices. The joint venture between Tata Teleservices and Japanese telecom majorNTT Docomo officially began rollouts with a plan to invest $2 billion for its pan-IndiaGSM services. 19
  20. 20. Customer Satisfaction The 21 century belongs to the service sector. The customer of yesteryear was a silent person who uncomplainingly purchased the goods from the marketplace. There is a new customer emerging today. Customer satisfaction can bedefined as, 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 revenues that,hopeful, will cover expenses. Most companies start by establishing a customersatisfaction baseline. Then they target year by year improvement. Understanding customer requirement and delivering superior quality goodsand services to achieve composer satisfaction lead to the retention and growth of thecustomer.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. Todayorganization are aiming at high satisfaction rather than at customer delight becausecustomers who arejust satisfied still find it easy to switch over when a batter offers comes along. Thosewho are highly satisfied are much less ready to switch over. High satisfaction ordelight creates an emotional bound with the brand and customer starts looking at anoffering emotionally and just rationally. The aim of marketing is to meet and satisfy target customers needs andwants but knowing customer is never simple. Customer may state their needs andwants but act otherwise. They may not be in touch with their deeper motivations. 20
  21. 21. They may respond to influential to change their mind at the last minute. Some oftoday‘s most successful companies are raising expectation and deliveringperformances to match. These companies are aiming at TCS- Total customerSatisfaction. Increasing competition (whether for-profit or nonprofit) is forcing businessesto pay 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 Building customer loyalty will be a lot easier if you have a loyal workforce notat all a given these days. It is especially important to retain those employees whointeract with customers such as sales people, technical support, and customer-service people. Many companies give a lot of attention to retaining sales people butlittle to support people. The increasing trend today is to send customer service and technical supportcalls into queue for the next available person. This builds no personal loyalty andprobably less loyalty for the firm. Before going this route, be sure this is what yourcustomers prefer. 21
  22. 22. 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 or whatyour problem is and then discovering that that person hasn‘t been paying attention andneeds to have it explained again? From a customer‘s point of view, I doubt it. Can thesales pitches and the product babble. Let the customer talk and show them that you arelistening by making the appropriate responses, such as suggesting how to solve theproblem. 22
  23. 23. MARKETING STRATEGY Tata Docomo appears to be banking heavily on its tariff plans the companyis offering a 1 second pulse instead of the usual 1 minute pulse that other telecomoperators are offering. This means that consumers are charged on a per secondbasis, 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 websiteexplains how this works. Rs. 0.01/second is a marked change from the Re 1/min andRs. 0.49/min charges that usually applies.MARKETING MIX4P‟S OF MARKETING MIX: Product Price Place Promotion.PRODUCT: TATA DOCOMO having good range of services. Tata Docomo provides bothpostpaid and prepaid services. Tata Docomo having good quality network whichprovides clarity in voice.PRICE: Ithaving attractive tariff plan: TATA DOCOMO having 1paisa /sec it is applicable forboth prepaid and postpaid. 23
  24. 24. PLACE: Itis having good range of channels of distribution: As Tata already exist in this field oftelecommunications as Tata Indicom. It has wide range of channels of distribution tosell TATA DOCOMO services.PROMOTION: Advertising: TATA DOCOMO following different style of advertising pattern in TV‗and newspapers. Due to that reason it was reaching public very fast. TATA DOCOMO PRICING STRATEGY Tata Docomo appears to be banking heavily on its tariff plans the companyoffers a 1 second pulse instead of the usual 1 minute pulse that other telecomoperators were offering. This means that consumers are charged on a per secondbasis, instead of a per minute basis, and end up saving money on unused seconds.A fifty little application ―How much can you really save‖ on Docomo‘s website 24
  25. 25. explains how this works. Rs. 0.01/second is a marked change from the Re 1/min andRs. 0.49/min charges that usually apply. Now while this plan might sound unique, it isn‘t that it hasn‘t been tried beforeback in 2004, Tata Indicom had launched 1 second pulse plans, which going by theircurrent plans, appears to have been shelved.At present, Tata Docomo has launched voice portals, 24-hour music, cricketcommentary and voice chat, apart from offering free Missed Call Alerts and VoiceMail. 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. Caller Tunesearch service ‗Genie‘ is also being priced at Rs. 0.02/second. This is a markedchange, again, from the per minute pricing, and can offer consumers cheaperoptions.An initiative that has taken the service provider industry by storm The pay per second model has really paid off well for the latest entrant inthe Indian 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 September 2010.Mobile pricing innovation – Tata Docomo now charges per website for MobileBrowsing! This is surely a first world over – Tata Docomo have gone ahead andlaunched an innovative mobile Internet offering which allows users unlimited usage oftheir favorite websites on mobile for a fixed cost.Tata Docomo has been forefront in coming up with various attractive pricingschemes, especially, in the pay-per-use paradigm. They were first to introduce payper second billing on calls, which now is followed by every mobile service provider. 25
  26. 26. They followed it with pay-per-minute and pay-per-call pricing plans as well which hasmade them one of the fastest growing Mobile companies in India. The new pay-per-website offering however, takes it to a completedifferent level and unheard of pricing strategy. This is a very thoughtful strategy andsomething which has potential to growth rapidly. Tata Docomo pricing strategy.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 25 permonth. 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 forunlimited use…it is not. Tata Docomo pay per site plan categorizes each service under 2 differentgenres – Social Networking Site and Emailing & Instant Messaging. Each site underthis genre is priced at Rs. 10/- bundled with 200 MB free data usage valid for 30days, post which customers will be charged at 1p/kb. There are also 2 Combooptions SNS Combo Pack and Emailing Combo Pack and each Combo Pack ispriced at Rs. 25/- bundled with 500 MB free data usage post which the customers willbe charged 1p/kb. We have been quite impressed the way Tata Docomo have gone abouttheir innovative pricing models as well as marketing strategies. “Per Character” SMS Pricing On 8th September 2009, the GSM branch of the Indian carrier Tataintroduced a novel pricing strategy for text messaging. Under the brand ―Diet-SMS―,Tata-DOCOMO bills its customers ―by-the-character‖, rather than on a per messagebasis. 26
  27. 27. It is a very attractive marketing scheme, since many wireless subscribers,almost by habit, tend to pepper their text messages with abbreviations and acronyms. Under the new plan, Tata-Docomo charges “one paisa per character”.For example, a text which reads ―tnx‖ (for ―thank-you‖) is charged at 3paise instead ofthe normal sms charge.The Impact Tata Docomo 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.Tata Docomo pricing strategy. 27
  28. 28. ADVERTISING MEDIA CHANNELS India Tata Docomo, the youngest among telecom players in India tooffer GSM, is Presently banking on its services to garner visibility and a share in thetelecom pie. The launch of Tata Docomo also announced the intention of the brand toassociate with the thought do. Tata Docomo, for the first time in the country, offeredpay-per-second billing; though other telecom providers have followed suit since. Thecompany has carried out a few adverts that highlight the brands unique features andsome other topical advertising during Ganesh Chaturthi and Diwali. The latest fromthe GSM provider is the Friendship Express TVC. The ad opens inside train, whereeveryone is doing their own thing. A couple of the travelers dont like the solemnmood and start humming the Docomo tune. Slowly and steadily, others pitch in andsoon most of the train is singing along. The ad ends with the super, Why walk alonewhen we can dance together. 28
  29. 29. Tata Docomo launched „ Keep it Simple‟ campaign with Rabir Kapoor! Cutting through the clutter that the Indian telecom landscape finds itself inwith customers forced to jostle with confusing and complicated products, servicesand tariff plans Tata DOCOMO is ‗Doing the New‘ again, with the launch of its newbrand campaign, aptly titled ‗Keep It Simple‘. Tata DOCOMO‘s unique Keep ItSimple Campaign is in a form of a stand-up comedy show with many episodes,which will be aired during the course of this IPL season. It focuses largely on howTata DOCOMO simplifies the telecom experience, and hence the consumer‘s life, byproviding differentiated products and services. Each individual advertisement startsby illustrating a complexity in the category, and presents the Tata DOCOMO productand/or service as a means of simplifying things. This campaign is simple, capturesthe various moods of Ranbir depicting those of Tata DOCOMO 29
  30. 30. Advertisement strategy Tata DOCOMO ropes in Ranbir Kapoor as brand ambassadorNEW DELHI: Tata Docomo, the GSM brand of Tata Teleservices (TTSL), todayappointed Bollywood star Ranbir Kapoor as its brand ambassador. The company has inked a two-year contract with Kapoor and will roll outvarious televisions, print and outdoor campaigns with the actor, starting with theupcoming Indian Premier League (IPL) tournament. "We think Tata Docomo is an inspirational brand and so is the charm andpersonality of Ranbir Kapoor, so it is a great match. We will leverage him in variouscampaigns to build the brand further," TTSL Head Corporate Marketing GurinderSingh Sandhu told PTI. Tata DOCOMO 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,which kicks off on April According to media analysts, Tata Docomo is expected to spend in excessof Rs 50 crore for the 360-degree campaign during the IPL season. Other telecom operators like Bharti Airtel, Idea Cellular and RelianceCommunications have also appointed Bollywood stars as their brand ambassadors. While Airtel has worked with Shahrukh Khan, Saif Ali Khan and KareenaKapoor, Idea Cellular has Abhishek Bachchan as its ambassador. RelianceCommunications has worked with Hrithik Roshan. Vodafone, on the other hand, has found success with its Zoozoos, the eggshaped cartoon characters featured in its ad campaign. 30
  31. 31. Market Competitors of Tata Docomo:  Airtel  Reliance Communication  BSNL  Idea  Aircel  Vodafone SERVICES & NETWORK AVAILABLE  Currently, Tata Docomo mobile services available in these following circles:  Bihar & Jharkhand  Tamil Nadu  Orissa  Andhra Pradesh  Karnataka  Kerala  Kolkata  Maharashtra & Goa  Madhya Pradesh  Chhattisgarh 31
  32. 32.  Haryana Chennai Eastern Uttar Pradesh Western Uttar Pradesh Punjab Rajasthan ,Recently Launched Aand Rest of West Bengal, Recently Launched. 32
  33. 33. 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. 33
  34. 34. Product options:- 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. 34
  35. 35. 10 minutes to USA/Canada @ Rs.20 5 minutes to USA/Canada @ Rs.10a. 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 26th 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. 35
  36. 36. Pay Per Site Packs:-Pay Per Site Type MRP(Rs.) Validity GPRS free (Days) UsageCombo PacksMail Combo Mail 25 30 500MB‗Social Networking Sites‘ SNS 25 30 500MBComboMail PacksGmail+GTalk Mail 10 30 200MBRediffmail Mail 10 30 200MBYahoo Mail Mail 10 30 200MB+Yahoo MessengerSocial Networking Sites‟ PacksFacebook SNS 10 30 200MBTwitter SNS 10 30 200MBLinkedIN SNS 10 30 200MBOrkut SNS 10 30 200MBNimbuzz SNS 10 30 200MB 36
  37. 37. SMS offers: Pay for the First 3 Local SMS everyday and get the next 150 Local SMS free for the day Pay for the First Local/ National SMS everyday and get the next 100 Local/ National SMS free for the day Pay for the First 3 Local SMS everyday and get the next 750 Local SMS Free for day Pre-STD, ISD and National Roaming without rental. Automatic alerts when your Balance is Low. 37
  38. 38. Competitor Analysis The competition has intensified the past few months with new players andschemes coming in. There has never been a better time for the customer to get amobile phone connection There are at least six if not more operators to choose from in ever circle. InJune 09, TATA DOCOMO broke the old system of tariff by introducing per secondbilling system. As soon as they did this, the other followed suit with price cutseverywhere. Suddenly the idea of calls being free was not so outrageous. The priceswere 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 followingperspectives.Market share 38
  39. 39. The government issued fresh licenses in 2008.As a result of this themarket gets crowded though incumbents‟ still hold larger market shares are shownabove. However a point to note is that the new players have lower entry costs withvery deep pockets. They also have no legacy issues like the older players and henceare more adept to changes market situations. The cost of infrastructure has reduceddramatically due to the market growth and DOCOMO had an advantage here.MARKET CAPITALISATION: As profits margins are becoming thin, the market capitalization of listedtelecom companies has fallen. Though there have been some signs of recovery 39
  40. 40. Airtel vs Tata Docomo 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 Tata Docomo 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 Bharti Airtel launched their much awaited ―Pay per Second‖ tariff all throughout India. The tariff comparison with Airtel and TATA Docomo 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. 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 Tata Docomo 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 Bharti Airtel yet again. Airtel had 2.5 million new users in September. 40
  41. 41. 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. 41
  42. 42.  To introduce any new plans for internet users. Introduce 3G compatible services. 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. 42
  43. 43. Growth of TelecomThe Indian Telecom sector has proved to be an international success story. The sectorhas witnessed a commendable growth over the past two years. With an overallsubscriber base of 914.60 million and a teledensity of 76.03%, the sector continues togrow from strength to strength. With the urban teledensity reaching 166.54%, themarket has been showing signs of maturity. Rural India is the key target market likely todrive the next round of growth, particularly for voice based services. It is envisaged thatrural teledensity of 40% would be reached by end of 2014. 3G and BWA are expectedto reinvigorate the maturing urban markets and help in bringing balanced growth ofeconomy. The aggressive growth observed by mobile services is yet to be replicated incase of broadband service, where the subscriber base currently stands at more than 12million. The Government has a vision to provide telephone connection and broadbandfacilities on demand across the country at an affordable price and it strives to achievethe same.The growth of telecom sector since 2007: Subscribers base ( in million)Subscribers March07 March08 March09 March10 March11 October11Wireline 40.77 39.41 37.96 36.96 34.73 33.19Wireless 165.09 261.08 391.76 584.32 811.60 881.41Total Phones 205.87 300.49 429.73 621.28 846.33 914.60Internet 9.21 11.05 13.65 16.10 19.69 -Broadband 2.29 3.81 6.22 8.77 11.79 12.84*Data 31.3 65.5 117.82 177.87 381.40 -services/ 43
  44. 44. Wirelessinternet## accessing internet through wireless networks as per quarterly reports of TRAI*up to September 2011 .The 11th plan (2007-2012) had envisaged provision of 600 million connections. Thenumber of telephone connections both wireline and wireless put together stands at914.60 million on 31.10.2011. This registers an addition of 869.83 million connectionsby October 2011 against a target of 600 million connections by end of the 12 th Plan i.e.March 2012. Wireless subscribers increased to 881.41 million by October 2011,exhibiting a Compound Annual Growth Rate (CAGR) of 43.93% . During the first sevenmonths of the current year 2011-12, the wireless connections grew by 8.60%. Thenumber of Internet subscribers grew by 22.30%, while the broadband subscribers grewat 34.43% during the year 2010-11.Change in composition of sector:Public vs. Private: The liberalization efforts of the Government are evident in thegrowing share of the private sector. The private sector is now playing an important rolein the expansion of telecom sector which is evident from the following table: Number of Telephones ( in million) PSUs Network Private Network %age Share Year Total Wirelin Wireles Wirelin Wireles of Total Total e s e s PSUs 44
  45. 45. 134.4 205.8 2007 37.46 33.93 71.39 3.31 131.16 34.68% 8 7 Number of Telephones ( in million) PSUs Network Private Network %age Share Year Total Wirelin Wireles Wirelin Wireles of Total Total e s e s PSUs 220.9 300.4 2008 35.23 44.32 79.55 4.19 216.76 26.47% 4 9 340.1 429.7 2009 32.92 56.63 89.55 5.04 335.13 20.84% 8 3 105.8 515.3 621.2 2010 31.33 74.54 5.63 509.78 17.04% 7 8 8 126.0 720.3 846.3 2011 28.69 97.31 6.04 714.29 14.89% 0 3 3 October1 128.8 785.7 914.6 26.99 101.82 6.20 779.59 14.08% 1 1 9 0 The share of private sector in the number of telephones has increased from65.32% (134.48 million telephones) at the end of March, 2007 to 85.92% (786 milliontelephones) at the end of October, 2011. 45
  46. 46. Wireless vs. Wireline: The preference for use of wireless phones has also been predominant in thesector. This is confirmed from the rising share of wireless phones, which increased from80.19% (165.09 million) at the end of March, 2007 to 96.37% (881.41 million) at theend of October, 2011.Trend in Teledensity: Teledensity in the country is steadily increasing from 18.22% as on 31.3.07 to70.89% as on 31.03.11 and currently stands at 76.03% as on 31.10.11. However, thereis a wide gap between urban teledensity (166.54%) and rural teledensity (36.81%).Rural Telephony: 97.09% of the villages in India have been covered by the Village PublicTelephones (VPTs). Apart from the 308.87 million connections provided in the ruralareas, 576350 VPTs have been provided till 31.10.2011.Policy Reforms and New Initiatives For a dynamic sector, reforms are necessitated by dynamics of changesincluding technological innovations. The telecom sector in India has been witnessing acontinuous process of reforms since 1991. During the recent years, various policyinitiatives have been carried out to give boost to the sector. Major policy initiatives andmilestones achieved in Telecom Sector include:A Mobile Number Portability (MNP): MNP was launched by the Prime Minister on January 20, 2011. The MNP serviceallows subscribers to retain their existing mobile telephone number even when theyswitch from one access service provider to another irrespective of mobile technology orfrom one technology to another technology of the same or any other access serviceprovider within the same service area. 46
  47. 47. Implementation of MNP has not only given wider choices to the Indiansubscribers but has also induced service providers to offer innovative, affordable andcompetitive traffic plans for the benefit of the masses. As on November 30, 2011, 19million mobile customers have successfully ported their mobile numbers to the serviceproviders‘ of their choice.B Telecom Commercial Communications Customer Preference Regulations2010: Telecom Commercial Communications Customer Preference Regulations(TCCCPR) 2010 came into force on September 27, 2011. TCCCPR 2010 gives optionsto customers to exercise their preference, separate number for telemarketers startingwith 140, easy registration of the telemarketers, sharing of database, blacklistingprovisions, filtering of calls and SMS by service providers, effective complaint redressalsystem and financial disincentive on access providers. In order to curb unsolicited commercial communication, which were a majorcause of disturbance and inconvenience for telecom users, TRAI notified ―TelecomUnsolicited Commercial Communication Regulations‖ in 2007, putting in place aframework for controlling unsolicited commercial communications. This regulation wasfurther improved through two amendments in 2008. As a result of this regulation, thenumber of unsolicited calls decreased but the number of unsolicited SMS increased.The Indian telecom customer demanded more from TRAI, which led to enforcement ofTCCCPR 2010.C Foreign Direct Investment (FDI): Foreign Direct Investment (FDI) is one of the important sources to meet therequirement of huge funds for rapid network expansion. The FDI policy provides aninvestor-friendly environment for the growth of the telecom sector. Telecom hasemerged as the third major sector attracting FDI inflows after services and computersoftware sector. At present, 74% to 100% FDI is permitted for various telecom services. 47
  48. 48. This investment has helped telecom sector to grow. The growth of FDI in TelecomSector since 2007 is as under:Foreign Direct Investment(in million US$) 2006-07 2007-08 2008-09 2009-10 2011-12 2011-12 (upto Sept. 2011)FDI 478 1261 2558 2554 1665 1901D Declining Tariff: The telephone tariffs have declined dramatically over the last two years makingthe mobile telephone affordable to the common man. There are a large number ofoptions available for the subscribers to choose from the market depending upon theirusage profile. The prepaid tariffs have gone as low as ½ paise per second.E Manufacturing of Telecom Equipment: The exponential growth witnessed by the telecom sector in the past decade hasled to the development of the telecom equipment manufacturing and other supportingindustries. With the advent of next-generation technologies and operators looking to rollout 3G and broadband wireless access services, the demand for telecom equipmenthas increased rapidly. In an attempt to capitalize on this opportunity, the Government isfocusing on developing the domestic manufacturing industry. The Indian equipmentmanufacturing sector has come a long way in the past few years. From being an import-centric industry, it is slowly but steadily moving towards becoming a global telecomequipment manufacturing hub. In 2002-03, India produced telecom equipment worth Rs144 billion, which increased to Rs 520 billion in 2010-11, making a growth of 265 percent. 48
  49. 49. One of the key reasons for this trend is the setting up of domestic manufacturingfacilities by Indian companies along with multinational companies. The market iscurrently dominated by multinational companies like Nokia, Nokia Siemens Networks,Ericsson, Alcatel-Lucent, Motorola, LG Electronics, Samsung etc. which have set uptheir production facilities in the country over the past decade and many more areplanning to set up. Also, with Indian as well as multinational companies setting up basein India, the country is not only emerging as a manufacturing hub but is also planning toincrease its telecom exports. In the year 2006-07, India exported equipment worth Rs18.98 billion, which increased by over 730 per cent to Rs 158 billion in 2010-11. Indianmobile handset companies increased their share in the domestic market to 14 per centin 2009-10 from 3-4 per cent in 2008-09. Domestic brands have established themselvesin the market and are competing with international handset vendors. The Government is supporting the domestic equipment manufacturing industryand the growth of indigenous technology. With efforts from both the Government andthe industry, India can build a conducive ecosystem to boost the equipmentmanufacturing sector, which can lead to the creation of an industry that will competewith the best in the world. With above initiatives India is expected to be a manufacturinghub for telecom equipment.F Draft National Telecom Policy(NTP– 2011): Draft NTP 2011 was announced on October 10, 2011. NTP–2011 proposes to provide stable, rationale and objective policy regime over next decade or so: To make available secure, reliable and affordable voice telephony and high speed broadband services to every citizen in India with special focus on rural and remote areas. To improve the broadband experience by enhancing the speed of delivery. To make India a global hub of manufacturing for all electronic products including telecom equipment with substantial value addition within the country and safeguard security concerns of the nation. 49
  50. 50. For simplification and rationalisation of licensing regime, transparent system for allocation of spectrum and enable efficient usage of spectrum. For discovery of price of spectrum through market related processes. To achieve One Nation- Full Mobile Number Portability To enable free roaming throughout the country. To harness full potential of mobile phones for enabling provision of citizen centric services related to education, health, employment, agriculture, entertainment, banking & insurance services, skill upgradation, vocational training etc. To encourage indigenous manufacture of cost effective mobile devices.The faster roll out of high speed and reliable broadband in rural and urban areas willenable decentralised governance, participative democracy and delivery of basicservices such as health and education to every citizen of the country. The thrust onmanufacturing will promote entrepreneurship, create more job opportunities, reduceimports and improve security. Efficient usage of scarce resources like spectrum willresult in better quality of service to the customers at affordable cost. The new policyregime will be beneficial to end consumers/citizens, Telecom Service Providers, ValueAdded Service Providers, Government and Manufacturers. Policy is likely to beapproved by the June 2012.G. National frequency Allocation Plan: The National Frequency Allocation Plan-2011 (NAFP) came into effect fromOctober 1, 2011 to ensure its efficient and effective management. Radio spectrum isbecoming increasingly important for all walks of life and needs to be managed rationally. NAFP-2011 is a policy document which contains spectrum allocation for variousradio communication services/applications in different frequency bands. This documentprovides the basis for development, manufacturing and spectrum utilization activities inthe country, both for Government and private sectors. 50
  51. 51. H Recent initiatives undertaken by USOF: The strategy for network expansion in rural areas mainly involves provision of phonesin the viable areas through market mechanism and through Universal Service ObligationFund (USOF) in the non-viable areas. While Village Public Telephones (VPTs) willenable public access, a scheme of Infrastructure sharing by Infrastructure Providers andUniversal Service Providers has been launched under USOF to create infrastructure inrural and remote areas. The achievements of the schemes under USOF are as under:-  Apart from the 308.87 million connections provided in the rural areas, 576350 VPTs have been provided till 31.10.11. 97.09% of the villages in India have now been covered by the VPTs.  As on 30.10.2011, 7289 towers i.e. about 99% have been set up under shared mobile infrastructure scheme. The infrastructure so created is being shared by three service providers for provision of mobile services.  As on 30.09.2011, a total of 2,24,631 broadband connections have been provided and 5674 kiosks have been set up in rural and remote areas under Rural Broadband Scheme for expanding provision of Wireline Broadband Connectivity upto village level.  Another Scheme has been launched to provide sufficient back-haul capacity to integrate the voice and data traffic from the access network in the rural areas to their core network by strengthening the OFC network. This scheme considers Optical Fibre Cable (OFC) Network augmentation between the blocks HQ and Districts HQ to begin with. USOF, through this Scheme, shall provide subsidy support for augmentation, creation and management of intra-district SDHQ-DHQ OFC Network on the condition that it will be shared with other Telecom Operators at the rates prescribed in the Agreement. Assam has been taken up first for implementation. 51
  52. 52. Some of the pilot projects undertaken by USOF are as under:-(i) Support is being provided for mobile charging stations in 5000 villages throughTata Energy Research Institute ( TERI) project of Lighting a Billion Lives (LaBL). Thesolar mobile charging stations in these 5000 villages are to be provided in a phasedmanner over a period of two years from the date of signing of the Agreement. Till30.04.2011, mobile charging stations have been established in 322 villages.(ii) A Memorandum of Understanding (MoU) has been signed with BSNL forfinancial support from USOF for provision of Broadband enabled Rural PublicService Terminals (RPSTs) to eligible Woman SHGs (Self Help Groups) on pilotbasis in the states of HP and Rajasthan. BSNL shall provide an RPST to one eligibleSHG from each of its eligible rural wire-line exchanges under the MoU as per agreedterms & conditions with subsidy support from USO Fund. At present, 150 RPSTs (100 inRajasthan and 50 in HP) have been provided under this scheme.(iii) Recognizing the vital role that Information Communication Technology (ICT) canplay in the empowerment of rural women, a scheme has been launched for pilotprojects aimed at facilitating Self Help Groups (SHGs) access to ICT enabled services.Financial support from USO Fund is to be provided towards Value Added Service (VAS)subscriptions for SHGs in accordance with the provisions of underlying subsidyAgreements. At present MoUs have been signed for Proof of Concept (PoC) for 8mobile VAS projects in the state of Tamilnadu, Kerala, Maharashtra, Uttar Pradesh,Uttarakhand, Andhra Pradesh, Rajasthan and the Union Territory of Puducherry. 52
  53. 53. I Implementation of National Optical Fibre Network (NOFN): All villagePanchayats are to be connected through NOFN to enable delivery of public andprivate electronic services to citizens in urban and rural areas.  Broadband is a tool for improving the life of people by providing affordable and equitable access to information and knowledge. For individual, broadband has direct impact on their day to day life style and behaviour. For State, it enormously contributes towards trade and generation of employment.  Many Information and Communication Technologies (ICT) applications such as e-commerce, e-banking, e-governance, e-education and tele-medicine require high speed Internet connectivity.  Government has approved National Optical Fiber Network in October 2011 for providing Broadband connectivity to all Panchayats at a cost of approx 20,000 Crore.  The plan is to extend the existing optical fiber network up to Panchayats. The Network will be available to telecom service providers for providing various services to the citizens in non-discriminatory manner. As per the approval of the Cabinet, the action for establishing and operationalising Special Purpose Vehicle (SPV) has been initiated for management and operation of the NOFN and ensuring non-discriminatory access to all service providers.· In economic terms, the benefits from the scheme are expected through additional employment, e-education, e-health, e-agriculture etc. and reduction in migration of rural population to urban areas. As per a study conducted by the World Bank, with every 10% increase in broadband penetration, there is an increase in GDP growth by 1.4%.  NOFN will also facilitate implementation of various e- governance initiatives such as e-health, e-banking, e-education etc. thereby facilitating inclusive growth.  The Network will provide a highway for transmission of voice, data and video in rural areas. It will enable the broadband connectivity upto 2 Mbps, capable of providing various 53
  54. 54. electronic services like education, health, entertainment, commerce etc; to people and businesses.· The people in rural areas, student, entrepreneurs, various Government Departments providing services under e-gov projects will be benefitted. It will also provide connectivity to various public institutions like Gram Panchayats, Primary Health Centres (PHCs), schools etc. in rural areas. It will also result in investment from the private sector both for providing different services and manufacturing of broadband related telecom equipment.· The NOFN project would be implemented in 2 years. 54
  55. 55. Advertising and its Impact for Tata DocomoMan in the Airplane - New TATA DOCOMO TV AdCelebrity Promotion for Tata Docomo R. KapourRanbir Kapoor dons new avatar for Tata Docomo‟s new campaignTata Docomo‟s new campaign with Ranbir Kapoor to go on air with IPL season 5TT Correspondent | 04 Apr 2012 Tata DOCOMO‘s campaign featuring film actor Ranbir Kapoor will to go on air with the Indian Premier League (IPL) season 5. The company said the new brand campaign is simple, drawing attention to the ridiculousness of service paradigms in telecom. Ranbir Kapoor is endearing in his all-new, unimaginable avatar inIPL Season 5 Refresh the core service differentiators of Tata.With this campaign, we are reinforcing the core proposition of the brand, and reiteratingthe service differentiators that brand Tata DOCOMO offers to its customers, GurinderSingh Sandhu, Head, Marketing, Tata Teleservices, said.The idea here is to communicate effectively the unfairness and rigidity that exists in thetelecom industry, and this has been beautifully conceptualized and executed by way ofdrawing analogies with another service industry. An eatery, manned by a grumpy yetendearing old man; the restaurateur! 55
  56. 56. Commenting on this new avatar, Tata DOCOMO‘s brand ambassador Ranbir Kapoorsaid, This is a unique approach to advertising and I am very excited to be part of it. Withthis campaign, we are attempting to be really different? And I am sure people will like it.The campaign reflects values that I believe in personally. Transparency, honesty andtrue value. This is a brand that believes in DO, and that also strikes a strong chord withme.In every promo, Tata DOCOMO differentiators have been talked about, highlighting thespecific consumer pain points that have been contextualized with similar parallels in therestaurant. Be it the No Unfair Balance Deductions or Enjoy the Best InternetExperience. Always, Ranbir the restaurateur uses innuendos and raillery in anuncharacteristic gruff voice to flummox the customer, while driving home TataDOCOMO‘s central message in a lucid yet rib-tickling manner.In continuation to its first series of Keep it Simple, Silly Campaign, this IPL Season 5 willsee Tata DOCOMO launching a simple yet refreshingly different approach. While thefirst set of exciting promos tickles the audience and drives home our key message, wewill be expanding the ambit and messaging, with various other marketing initiatives alsopushing the message. The TV campaign will be supported with a brand surroundcampaign print, outdoors, on-ground and retail, Sandhu added.Tata DOCOMO is involved with IPL as an associate sponsor with its leading wirelessbroadband service brand, Tata DOCOMO Photon Max, which was recently, conferredthe Product of the Year 2012 award for Best Innovation by AC Neilsen. Tata DOCOMOhas been able to foster a strong brand-customer relationship by offering uncomplicatedtelecom solutions with no hidden conditions or unwanted service activations.Ritesh Ghoshal, head – brand marketing, Tata Teleservices, explained, ―Imagine aworld where everyone starts treating you like your telecom operator does. That‘s theanalogy we‘ve drawn, and how Tata Docomo differs from that.‖The brand is also an associate sponsor with IPL 5. Ghoshal said, ―We are an associatesponsor on IPL, as we have been for the past two years. We use IPL as a media 56
  57. 57. property rather than an association property. We don‘t associate with teams. When theIPL comes around, all other channels take a hit in viewership; prime time viewershipmoves to cricket. The remote comes into the hands of my core TG which is the maleaudience 15-45, all over India, and that‘s why we leverage it as a media property.‖Ranbir Kapoors New Look Spells Magic! Tata DOCOMOs New Campaign isRefreshingly DifferentBe Smart, Pay Per Second: virtues of per second billing allows customers to save up to23% on their mobile bills - Campaign refreshes Tata DOCOMOs core servicedifferentiators of no fine-print, no hidden conditions and no unwarranted balancedeductions - Ranbir Kapoor is endearing in his all-new, unimaginable avatar in IPLSeason 5 Refresh the core service differentiators of TataBengaluru, Karnataka, April 8, 2012 /India PRwire/ -- Cutting through the clutter that theIndian telecom landscape finds itself in-with customers forced to jostle with confusingand complicated products, services and tariff plans-Tata DOCOMO is doing a standoutact yet again, with the launch of its new brand campaign that urges customers to pay bythe second, always.Scheduled to go on air with the Indian Premier League Season 5, the new brandcampaign is simple, drawing attention to the ridiculousness of service paradigms intelecom. The campaign refreshes the core service differentiators of Tata DOCOMO-nofine-print, no hidden conditions and no unwarranted balance deductions. Tagged asinnovators and the first to introduce the concept of Pay Per Use, the brand, with thisunique campaign, reinstates the message that paying by the second always benefits thecustomer. Tata DOCOMO charges the customer on a per-second pulse-not by theminute-leading to saving of up to 23% on mobile bills! 57
  58. 58. "With this campaign, we are reinforcing the core proposition of the brand, and reiteratingthe service differentiators that brand Tata DOCOMO offers to its customers," MrGurinder Singh Sandhu, Head, Marketing, Tata Teleservices, said. "The idea hereis to communicate effectively the unfairness and rigidity that exists in the telecomindustry, and this has been beautifully conceptualized and executed by way of drawinganalogies with another service industry-an eatery, manned by a grumpy yet endearingold man; the restaurateur!"Commenting on this new avatar, Tata DOCOMOs brand ambassador Ranbir Kapoorsaid: "This is a unique approach to advertising and I am very excited to be part of it.With this campaign, we are attempting to be really different-and I am sure people willlike it. The campaign reflects values that I believe in personally-transparency, honestyand true value. This is a brand that believes in DO, and that also strikes a strong chordwith me."In every promo, Tata DOCOMO differentiators have been talked about, highlighting thespecific consumer pain points that have been contextualized with similar parallels in therestaurant. Be it the No Unfair Balance Deductions or Enjoy the Best InternetExperience. Always, Ranbir the restaurateur uses innuendos and raillery in anuncharacteristic gruff voice to flummox the customer, while driving home TataDOCOMOs central message in a lucid yet rib-tickling manner.In continuation to its first series of Keep it Simple, Silly campaign, this IPL Season 5will see Tata DOCOMO launching a "simple" yet "refreshingly different" approach."While the first set of exciting promos tickles the audience and drives home our keymessage, we will be expanding the ambit and messaging, with various other marketinginitiatives also pushing the message. The TV campaign will be supported with a brandsurround campaign-print, outdoors, on-ground and retail," Mr Sandhu added.Tata DOCOMO is involved with IPL as an associate sponsor with its leading wirelessbroadband service brand, Tata DOCOMO Photon Max, which was recently conferredthe Product of the Year 2011 award for Best Innovation by AC Neilsen. 58
  59. 59. Buying Preference Celebrity Promotion“Impact of celebrity endorsement on overall brand”The motif behind total branding may be decocted as an attempt to amalgamate diverseactivities to win customer preference. Apropos to this context, the topic “Impact ofcelebrity endorsement on overall brand”, is a significant one. The crescendo ofcelebrities endorsing brands has been steadily increasing over the past years.Marketers overtly acknowledge the power of celebrities in influencing consumer-purchasing decisions. It is a ubiquitously accepted fact that celebrity endorsement canbestow special attributes upon a product that it may have lacked otherwise. Buteverything is not hunky-dory; celebrities are after all mere mortals made of flesh andblood like us. If a celebrity can aggrandize the merits of a brand, he or she can alsoexacerbate the image of a brand.If I may take the liberty of rephrasing Aristotle‟s quote on anger, “Any brand can get acelebrity. That is easy. But getting a celebrity consistent with the right brand, to the rightdegree, at the right time, for the right purpose and in the right way... that is not easy.”Celebrity endorsements are impelled by virtue of the following motives: Instant Brand Awareness and Recall. Celebrity values define, and refresh the brand image. Celebrities add new dimensions to the brand image. Instant credibility or aspiration PR coverage. Lack of ideas. Convincing clients.The scope of a celebrity on the incumbent brand:Simply stating, a brand is a differentiated product and helps in identifying your productand making it stand out due to its name, design, style, symbol, color combination, orusually a mix of all these. 59
  60. 60. Before we can scrutinize the effects of celebrity endorsement on the overall brand, wehave to ferret the implicit nuances that act as sources of strong brand images or values: Experience of use: This encapsulates familiarity and proven reliability. User associations: Brands acquire images from the type of people who are seen using them. Images of prestige or success are imbibed when brands are associated with glamorous personalities. Belief in efficiency: Ranking from consumer associations, newspaper editorials etc. Brand appearance: Design of brand offers clues to quality and affects preferences. Manufacturer‟s name & reputation: A prominent brand name (Sony,Kellogg‘s,Bajaj,Tata) transfers positive associationsThe celebrity‘s role is the most explicit and profound in incarnating user associationsamong the above-mentioned points. To comprehend this, let us analyze the multipliereffect formula for a successful brand:S=P* D*AV --the multiplier effectWhere S is a successful brand,P is an effective product.D is Distinctive Identityand AV is Added values.The realm of the celebrity‘s impact is confined to bestow a distinctive identity andprovide AV to the brand; the celebrity does not have the power to improve or debilitatethe efficiency and features of the core product. Thus, we are gradually approaching anevident proposition claiming,“The health of a brand can definitely be improved up to some extent by celebrityendorsement. But one has to remember that endorsing a celebrity is a means to an endand not an end in itself.” 60
  61. 61. An appropriately used celebrity can prove to be a massively powerful tool that magnifiesthe effects of a campaign. But the aura of cautiousness should always be there. Thefact to be emphasised is that celebrities alone do not guarantee success, as consumersnowadays understand advertising. They know what advertising is and how it works.People realize that celebrities are being paid a lot of money for endorsements and thisknowledge makes them cynical about celebrity endorsements.Compatibility of the celebrity‟s persona with the overall brand imageA celebrity is used to impart credibility and aspirational values to a brand, but thecelebrity needs to match the product. A good brand campaign idea and an intrinsic linkbetween the celebrity and the message are musts for a successful campaign.Celebrities are no doubt good at generating attention, recall and positive attitudestowards advertising provided that they are supporting a good idea and there is anexplicit fit between them and the brand. On the other hand, they are rendered uselesswhen it comes to the actual efficiency of the core product, creating positive attitudes tobrands, purchase intentions and actual sales.Certain parameters that postulate compatibility between the celebrity and brand imageare: Celebrity‘s fit with the brand image. Celebrity—Target audience match Celebrity associated values. Costs of acquiring the celebrity. Celebrity—Product match. Celebrity controversy risk. Celebrity popularity. Celebrity availability. Celebrity physical attractiveness. Celebrity credibility. 61
  62. 62. Celebrity prior endorsements. Whether celebrity is a brand user. Celebrity profession.Successful celebrity endorsements for a brand- An Indian perspectiveThe latter part of the 80s saw the burgeoning of a new trend in India– brands startedbeing endorsed by celebrities. Hindi film and TV stars as well as sportspersons wereroped in to endorse prominent brands. Advertisements, featuring stars like Tabassum(Prestige pressure cookers), Jalal Agha (Pan Parag), Kapil Dev (Palmolive ShavingCream) and Sunil Gavaskar (Dinesh Suitings) became common. Probably, the first adto cash in on star power in a strategic, long-term, mission statement kind of way wasLux soap. This brand has, perhaps as a result of this, been among the top three in thecountry for much of its lifetime.In recent times, we had the Shah Rukh-Santro campaign with the objective of mitigatingthe impediment that an unknown Korean brand faced in the Indian market. Theobjective was to garner faster brand recognition, association and emotional unity withthe target group. Star power in India can be gauged by the successful endorsementdone by Sharukh for three honchos- Pepsi, Clinic All Clear and Santro. Similarly, whenS Kumars used Hrithik Roshan, then the hottest advertising icon for their launchadvertising for Tamarind, they reckoned they spent 40 - 50 per cent less on media dueto the sheer impact of using Hrithik. Ad recall was as high as 70 per cent, and even thenormally conservative trade got interested.In the Indian context, it would not be presumptuous to state that celebrity endorsementscan aggrandize the overall brand. We have numerous examples exemplifying this claim.A standard example here is Coke, which, till recently, didnt use stars at allinternationally. In fact, India was a first for them. The result was a ubiquitously appealingAamir cheekily stating Thanda matlab Coca Cola. The recall value for Nakshatraadvertising is only due to the sensuous Aishwarya. The Parker pen brand, which byitself commands equity, used Amitabh Bachchan to revitalize the brand in India. 62
  63. 63. According to Pooja Jain, Director, Luxor Writing Instruments Ltd (LWIL), post Bachchan,Parkers sales have increased by about 30 per cent.India is one country, which has always idolized the stars of the celluloid world.Therefore it makes tremendous sense for a brand to procure a celebrity for itsendorsement. In India there is an exponential potential for a celebrity endorsement to beperceived as genuinely relevant, thereby motivating consumers to go in for the product.This would especially prove true if the endorser and the category are a natural lifestylefit like sportspersons and footwear, Kapil-Sachin and Boost or film stars and beautyproducts.Some Global Examples:Globally, firms have been juxtaposing their brands and themselves with celebrityendorsers. Some successful ongoing global endorsements are as follows: Celebrity endorsements have been the bedrock of Pepsis advertising. Over the years, Pepsi has used and continues to use a number of celebrities for general market and targeted advertising, including Shaquille ONeal, Mary J. Blige, Wyclef Jean, and Busta Rhymes, who did a targeted campaign for their Mountain Dew product. George Foreman for Meineke. He has also sold more than 10 million Lean Mean Fat-- Reducing Grilling Machines since signing with the manufacturing company. James Earl Jones for Verizon and CNN. Nike golf balls, since the company signed Tiger Woods in 1996, have seen a $50 million revenue growth. Nikes golf line grossed more than $250 million in annual sales. In 2000 he renegotiated a five-year contract estimated at $125 million. Other successful endorsements like Nike—Michael Jordan, Dunlop—John McEnroe, Adidas—Prince Naseem Hamed, and so on. Venus Williams, tennis player and Wimbledon champion has signed a five-year $40 million contract with sportswear manufacturer Reebok International Inc. 63
  64. 64. Advantages of a celebrity endorsing a BrandBrands have been leveraging celebrity appeal for a long time. Across categories,whether in products or services, more and more brands are banking on the massappeal of celebrities. As soon as a new face ascends the popularity charts, advertisersqueue up to have it splashed all over. Witness the spectacular rise of Sania Mirza andIrfan Pathan in endorsements in a matter of a few months. The accruement of celebrityendorsements can be justified by the following advantages that are bestowed on theoverall brand: Establishment of Credibility: Approval of a brand by a star fosters a sense of trust for that brand among the target audience- this is especially true in case of new products. We had the Shah Rukh-Santro campaign. At launch, Shah Rukh Khan endorsed Santro and this ensured that brand awareness was created in a market, which did not even know the brand. Ensured Attention: Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the ad and the brand more noticeable. PR coverage : is another reason for using celebrities. Managers perceive celebrities as topical, which create high PR coverage. A good example of integrated celebrity campaigns is one of the World‘s leading pop groups, the Spice Girls, who have not only appeared in advertisements for Pepsi, but also in product launching and PR events. Indeed, celebrity-company marriages are covered by most media from television to newspapers (e.g. The Spice Girls and Pepsi) Higher degree of recall: People tend to commensurate the personalities of the celebrity with the brand thereby increasing the recall value. Golf champion Tiger Woods has endorsed American Express, Rolex, and Nike. Actress Catherine Zeta-Jones is used by T-Mobile and Elizabeth Arden. 007 Pierce Brosnan promotes Omega, BMW, and Noreico. 64
  65. 65. Associative Benefit: A celebrity‘s preference for a brand gives out a persuasivemessage - because the celebrity is benefiting from the brand, the consumer willalso benefit.Mitigating a tarnished image: Cadbury India wanted to restore the consumersconfidence in its chocolate brands following the high-pitch worms controversy; sothe company appointed Amitabh Bachchan for the job. Last year, when the evenmore controversial pesticide issue shook up Coca-Cola and PepsiCo andresulted in much negative press, both soft drink majors put out high-profiledamage control ad films featuring their best and most expensive celebrities.While Aamir Khan led the Coke fightback as an ingenious and fastidious Bengaliwho finally gets convinced of the products `purity, PepsiCo brought Shah RukhKhan and Sachin Tendulkar together once again in a television commercialwhich drew references to the `safety of the product indirectly.Psychographic Connect: Celebrities are loved and adored by their fans andadvertisers use stars to capitalise on these feelings to sway the fans towardstheir brand.Demographic Connect: Different stars appeal differently to variousdemographic segments (age, gender, class, geography etc.).Mass Appeal: Some stars have a universal appeal and therefore prove to be agood bet to generate interest among the masses.Rejuvenating a stagnant brand: With the objective of infusing fresh life into thestagnant chyawanprash category and staving off competition from variousbrands, Dabur India roped in Bachchan for an estimated Rs 8 crore.Celebrity endorsement can sometimes compensate for lack of innovativeideas. 65
  66. 66. Disadvantages of a celebrity endorsing a brand:The celebrity approach has a few serious risks:1. The reputation of the celebrity may derogate after he/she has endorsed the product: Pepsi Colas suffered with three tarnished celebrities - Mike Tyson, Madonna, and Michael Jackson. Since the behaviour of the celebrities reflects on the brand, celebrity endorsers may at times become liabilities to the brands they endorse.2. The vampire effect: This terminology pertains to the issue of a celebrity overshadowing the brand. If there is no congruency between the celebrity and the brand, then the audience will remember the celebrity and not the brand. Examples are the campaigns of Dawn French—Cable Association and Leonard Rossiter— Cinzano. Both of these campaigns were aborted due to celebrities getting in the way of effective communication. Another example could be the Castrol commercial featuring Rahul Dravid.3. Inconsistency in the professional popularity of the celebrity: The celebrity may lose his or her popularity due to some lapse in professional performances. For example, when Tendulkar went through a prolonged lean patch recently, the inevitable question that cropped up in corporate circles - is he actually worth it? The 2003 Cricket World Cup also threw up the Shane Warne incident, which caught Pepsi off guard. With the Australian cricketer testing positive for consuming banned substances and his subsequent withdrawal from the event, bang in the middle of the event, PepsiCo - the presenting sponsor of the World Cup 2003 - found itself on an uneasy wicket 66
  67. 67. 4. Multi brand endorsements by the same celebrity would lead to overexposure: The novelty of a celebrity endorsement gets diluted if he does too many advertisements. This may be termed as commoditisation of celebrities, who are willing to endorse anything for big bucks. Example, MRF was among the early sponsors of Tendulkar with its logo emblazoned on his bat. But now Tendulkar endorses a myriad brands and the novelty of the Tendulkar-MRF campaign has scaled down.5. Celebrities endorsing one brand and using another (competitor): Sainsbury‘s encountered a problem with Catherina Zeta Jones, whom the company used for its recipe advertisements, when she was caught shopping in Tesco. A similar case happened with Britney Spears who endorsed one cola brand and was repeatedly caught drinking another brand of cola on tape.6. Mismatch between the celebrity and the image of the brand: Celebrities manifest a certain persona for the audience. It is of paramount importance that there is an egalitarian congruency between the persona of the celebrity and the image of the brand. Each celebrity portrays a broad range of meanings, involving a specific personality and lifestyle. Madonna, for example, is perceived as a tough, intense and modern women associated with the lower middle class. The personality of Pierce Brosnan is best characterized as the perfect gentlemen, whereas Jennifer Aniston has the image of the ‗good girl from next door‘. 67
  68. 68. CONCLUSIONDespite the obvious economic advantage of using relatively unknown personalities asendorsers in advertising campaigns, the choice of celebrities to fulfill that role hasbecome common practice for brands competing in todays cluttered media environment.There are several reasons for such extensive use of celebrities. Because of their highprofile, celebrities may help advertisements stand out from the surrounding clutter, thusimproving their communicative ability. Celebrities may also generate extensive PRleverage for brands. For example, when Revlon launched the "Wont kiss off test" for itsColorstay lipsticks in 1994 with Cindy Crawford kissing reporters, the campaign featuredon almost every major news channel and equally widely in the press. A briefassessment of the current market situation indicates, that celebrity endorsementadvertising strategies can, under the right circumstances, indeed justify the high costsassociated with this form of advertising.But it would be presumptuous to consider celebrity endorsement as a panacea for allbarricades. Celebrity endorsement if used effectively, makes the brand stand out,galvanizes brand recall and facilitates instant awareness. To achieve this, the marketerneeds to be really disciplined in choice of a celebrity. Hence the right use of celebritycan escalate the Unique Selling Proposition of a brand to new heights; but a cursoryorientation of a celebrity with a brand may prove to be claustrophobic for the brand. Acelebrity is a means to an end, and not an end in himself/herself. 68
  69. 69. ARTICLE BY TIMES OF INDIATata Tele gets Rs 784 cr equity boost from DocomoInjection coincides with Tata Group‟s holding company Tata Sons infusing Rs1,593 cr also as equityAbhineet Kumar / Mumbai Dec 11, 2012, 17:49 ISTICICIDirect Demat Account : 0*/- Demat Charges+Earn 4% interest on money intrading a/c .Apply telecom operator NTT Docomo that bought a 26% stake in Tata Teleservicesin 2008 for Rs 13,070 crore ($2.7 billion) in November 2008 has infused additional Rs784 crore by subscribing to fresh equity in the company in the last two financial yearsending March 2012.Docomo‘s equity infusion is coincided by Tata Group‘s holding company Sons infusingRs 1,593 crore and this way taking its holding to 39.22% at the end of March 2012 from37.92% a year back. The report does not mention how this increased NTT Docomo‘sholding in the company. Tata Tele is not listed on stock exchanges andits spokesperson declined to comment. Query sent to NTT Docomo to confirm itscurrent share holding did not get any response.Tata Teleservices is a laggard in the over $100 billion revenue Tata Group. It recordeda Rs 4,227.9 crore loss in 2011-12, up from Rs 3,508 crore loss a year ago. The 69
  70. 70. Japanese company has an agreement with Tata Sons to sell its 26% stake back to theTata Group holding firm if the company does not meet certain performance parametersby March 31, 2014.―The agreement has five performance parameters out of that three are met and two areslightly missed,‖ said a Tata Group source who did not wish to be identified.―We are confident of meeting all five parameters by March 31, 2014 and there shouldnot be any obligation to buy back those shares from Docomo,‖ he said withoutspecifying the details.―The capital infusion reflects the hardship that telecom companies are facing at a timewhen revenue growth is muted,‖ said Vivekanand Subbaraman, telecom analyst withforeign brokerage Phillip Capital.Tata Teleservices has been on a clean-up drive since the group veteran N Srinath tookthe reins of the company as managing director and chief executive officer in January2011. In his leadership, the company deactivated over 10 million inactive mobilesubscribers bringing down the subscriber base to 80.23 million at the end of quarterending June. Meanwhile, the company also started putting more focus on data servicesusing the CDMA technology.This is believed to have miffed NTT Docomo that partnered with Tata Teleservice for itslaunch of GSM-based services. The Japanese company specialises in 3G technologyand content in Japan. ―There are a few Docomo executives who have moved fromJapan to Tata Tele‘s office in Delhi and Mumbai and there are no issues between thetwo companies,‖ said the Tata Group source quoted earlier. DOCOMO already has theright to appoint three directors on the Tata Teleservices board. 70