A project report on indian mobile market

EXECUTIVE SUMMARY

Telecommunication is one of the most vital of all infrastructure services today .It is not
only essential for the growth and development of every other sector of the economy with
the interest of the world. Indian mobile industry is growing at a rate of 82.2%. The all
GSM subscriber base continued to grow aggressively in, achieving a subscriber base of
115.3 million in February 2007 up from 110.5 million in January 2007.The cellular
industry all over the world has been witnessing very high growth rates in subscriber base
in recent years.

Brand equity is sustainable value added to brand name in the market and in the customers
mind. Measuring brand equity is important because understanding why consumers choose
a particular brand and the extent to which consumers are loyal to brand is crucial to
successful branding strategies. This market research of brand equity was under taken to
analyze the brand equity of various service providers in Bangalore

In this study researcher has attempted to analyze the brand value of various mobile
service providers in Karnataka by collecting data from various customers. Valuable
information about the loyalty of the customer towards various mobile service providers,
user perception with respect to the brand, advertisement recall, perceived quality of
various brands and also the highest brand which has got the brand equity were collected
and analyzed

The data’s were collected from 150 customers of six brands in Karnataka and used as
samples of the study. Data’s been collected through personal discussion and structured
questionnaire

As per the study, it is hypothetically tested and found that the customer segment does not
influence on the choice of service providers. As per the responses analyzed, the attributes
of the product is the major factor leads to the choice of mobile service provider.

i

52 % of the respondent says AIRTEL is the leading and number one brand, 29%says
HUTCH and 19% said BSNL is the leading brand in Karnataka. The factors considered in
ranking the brand by customers are network, offers after sales and customer care, value
added services and call costs.

AIRTEL, HUTCH and BSNL are the brands which is having more brand loyalty.
AIRTEL is the leading brand which shows a high recollection of advertisement. Out of
150 respondents 74 respondents could recollect the AIRTEL advertisement .49 is
HUTCH, 19 is TATA INDICOM, 2, 2 and 4 is respectively for SPICE, BSNL and
RELIANCE.

TABLE OF CONTENT

ii

CHAPTER.NO. PARTICULARS PAGE NO

CHAPTER 1: INTRODUCTION 1
1.1 INTRODUCTION TO THE RESEARCH TOPIC 2

CHAPTER 2: RESEARCH DESIGN 3
2.1 REVIEW OF THE LITERATURE 4
2.2 STATEMENT OF THE PROBLEM 10
2.3 RESEARCH OBJECTIVES 11
2.4 TYPE OF RESEARCH 11
2.5 RESEARCH PURPOSE 11
2.6 SCOPE OF THE STUDY 12
2.7 DATA COLLECTION DESIGN 12
2.8 HYPOTHESIS 12
2.9 SAMPLING TECHNIQUE 13
2.10 SAMPLING SIZE 14
2.11 SAMPLING DESIGN 14
2.12 INSTRUMENTATION TECHNIQUE 14
2.13 METHOD OF DATA COLLECTION 15
2.14 LIMITATION OF THE STUDY 16

CHAPTER 3:PROFILE OF THE INDUSTRIES 17

3.1 INDIAN MOBILE MARKET 17
3.2 CELLULAR MARKET STRUCTURE 21
3.3 GSM MARKET OVERVIEW 27
3.4 MILE STONES 29
3.5 SWOT ANALYSIS OF MOBILE INDUSTRY 32

iii

CHAPTER 4: ANALYSIS AND INTERPRETATION OF DATA 34

CHAPTER 5: SUMMARY OF FINDINGS CONCLUSIONS AND
RECOMMENDATION 65

5.1 FINDINGS 66
5.2 SUGGESTIONS 70
5.3 CONCLUSION 73
5.4 BIBLIOGRAPHY 75
5.5 ANNEXURE 77

iv

LIST OF TABLE S

TABLE DETAILS PAGE NO
NO.
4A CHI SQUARE TEST TABLE 35
4B CALCULATION OF CHI SQUARE TEST 36
4:1 AGE OF RESPONDENTS 38
4:2 OCCUPATION OF THE RESPONDENTS 39
4:3 BRAND USAGE 40
4:4 TYPE OF CONNECTION 41
4:5 TIME OF USAGE 42
4:6 BRAND LOYALTY-SPICE 43
4:7 BRAND LOYALTY-HUTCH 44
4:8 BRAND LOYALTY-AIRTEL 45
4:9 BRAND LOYALTY-BSNL 46
4:10 BRAND LOYALTY-TATA INDICOM 47
4:11 BRAND LOYALTY-RELIANCE 48
4:12 BRAND SWITCHING BY CUSTOMERS 49
4:13 BRAND SWITCHING 50
4:14 CUSTOMERS PREFERENSES 51
4:15 TOP BRANDS 52
4:16 ADVERTISEMENT RECALL 53
4:17 RECOLLECTION OF ADVERTISEMENT 54
4:18 BRAND OPINION BY SPICE CUSTOMERS 55
4:19 BRAND OPINION BY HUTCHCUSTOMERS 56
4:20 BRAND OPINION BY AIRTEL CUSTOMERS 57
4:21 BRAND OPINION BY BSNL CUSTOMERS 58
4:22 BRAND OPINION BY TATA INDICOM CUSTOMERS 59
4:23 BRAND OPINION BY RELIANCE CUSTOMERS 60
4:24 BRAND USAGE- STUDENTS 61
4:25 BRAND USAGE BUSINESS CLASS 62
4:26 BRAND USAGE EMPLOYEES 63
4:27 BRAND UASGE COMPARISON 64

LIST OF CHARTS

v

CHART DETAILS PAGE NO
NO
3:1 MOBILE INDUSTRY REVENUE CHART 19
3:2 TYPE OF SUBSCRIBERS 20
3:3 PENETRATION OF MOBILE TELEPHONEY IN 23
INDIA
3:4 GROWTH OF MOBILE SUBSCRIBER 24
3:5 MOBILE TELE DENSITY 25
3:6 GSM VS CDMA 25
3:7 MOBILE PHONES VS FIXED LINES 26
3:8 FUTURE OF MOBILE INDUSTRY 27
3:9 TELE DENSITY FUTURE 27
3:10 COMPARISSON OF MOBILE TARRIFF 28
3:11 COMPARISON OF VAS REVENUE 31
4:1 AGE OF RESPONDENTS 38
4:2 OCCUPATION OF THE RESPONDENTS 39
4:3 BRAND USAGE 40
4:4 TYPE OF CONNECTION 41
4:5 TIME OF USAGE 42
4:6 BRAND LOYALTY-SPICE 43
4:7 BRAND LOYALTY-HUTCH 44
4:8 BRAND LOYALTY-AIRTEL 45
4:9 BRAND LOYALTY-BSNL 46
4:10 BRAND LOYALTY-TATA INDICOM 47
4:11 BRAND LOYALTY-RELIANCE 48
4:12 BRAND SWITCHING BY CUSTOMERS 49
4:13 BRAND SWITCHING 50
4:14 CUSTOMERS PREFERENSES 51
4:15 TOP BRANDS 52
4:16 ADVERTISEMENT RECALL 53
4:17 RECOLLECTION OF ADVERTISEMENT 54
4:18 BRAND OPINION BY SPICE CUSTOMERS 55
4:19 BRAND OPINION BY HUTCHCUSTOMERS 56
4:20 BRAND OPINION BY AIRTEL CUSTOMERS 57
4:21 BRAND OPINION BY BSNL CUSTOMERS 58
4:22 BRAND OPINION BY TATA INDICOM CUSTOMERS 59
4:23 BRAND OPINION BY RELIANCE CUSTOMERS 60
4:24 BRAND USAGE- STUDENTS 61
4:25 BRAND USAGE BUSINESS CLASS 62
4:26 BRAND USAGE EMPLOYEES 63
64

vi

CHAPTER 1

RESEARCH INTRODUCTION

RESEARCH INTRODUCTION

In the present Indian scenario the booming industry in the service sector is
telecommunication .the expansion of the telecom industry in India has been fueled by
massive growth in mobile phone users which had reached to a level of 53.38 million users
in May 05. There are many service providers competing each other to hold the highest
market share in this particular domain. Henceforth the very purpose of this research is to
identify the brands which have the high brand equity in Karnataka

This research is organized to analyze the Brand equity of cellular service providers in
Karnataka and to suggest various strategies to improve the brand image of the various
brands. Analysis helped to revealed the present market potential and trend in the market

The method developed during the study is unique for various companies. Companies can
repeat the study in the future using the same statistical methods developed by the
researcher Recommendations and suggestions consist of interpretation of meaningful
statistical information and views of the researcher. Business Research is a continuous
process; it does not end with one study because business environment is changing
exponentially

mind measuring brand equity is important because understanding why consumers choose

I am glad to be a part of research as it helps to enhance my own professional knowledge
and expertise. Globalization had made the world a smaller space and being a part of this
competitive world we are exploiting new places, new markets, and new business ventures,
which have definitely changed the concept of being identified as the developing country.
Being a part of this wider objective makes me the research interesting and enjoyable. I
hope the companies will benefit from my studies and findings

2

CHAPTER 2

RESEARCH DESIGN

3

RESEARCH DESIGN

Research is a systematic and logical study of an issue or a problem to arrive at accurate
results, research the job of collecting, recording and analyzing relevant data to arrive at
decisions. The present study is systematic, objective and exhaustive search for studies of
the facts Relevant to a problem in the field of marketing.

The search for the facts may be through either

 Unscientific method
 Scientific method

Unscientific method consists of imaginations, blind belief or impression rather than the
facts. Scientific method is the systematic approach to seek facts. It is objective, precise
and arrives at conclusion on the basis of certain evidences. Hence the research for the
facts should be made by scientific method to arrive at accurate results. The present
research study is selected to study the influencing factors for buying behaviors.

2:1 LITERATURE REVIEW

What is Brand Equity?

The value of a brand. From a consumer perspective, brand equity is based on consumer
attitudes about positive brand attributes and favorable consequences of brand use

There are many different definitions of brand equity, but they do have several factors in
common:

Monetary Value. The amount of additional income expected from a branded product
over and above what might be expected from an identical, but unbranded product. For
example, grocery stores frequently sell unbranded versions of name brand products. The
branded and unbranded products are produced by the same companies, but they carry a

4

generic brand or store brand label like Kroger’s or Albertson’s. Store brands sell for
significantly less than their name brand counterparts, even when the contents are
identical. This price differential is the monetary value of the brand name.

Intangible. The intangible value associated with a product that can not be accounted for
by price or features. Nike has created many intangible benefits for their athletic products
by associating them with star athletes. Children and adults want to wear Nike’s products
to feel some association with these star athletes (“be like Mike” - for Michael Jordan). It
is not the physical features that drive demand for their products, but the marketing image
that has been created. Buyers are willing to pay extremely high price premiums over
lesser known brands which may offer the same, or better, product quality and features.

Perceived Quality. The overall perceptions of quality and image attributed to a product,
independent of its physical features. Mercedes and BMW have established their brand
names as synonymous with high-quality, luxurious automobiles. Years of marketing,
image building, brand nurturing and quality manufacturing has lead consumers to assume
a high level of quality in everything they produce. Consumers are likely to perceive
Mercedes and BMW as providing superior quality to other brand name automobiles, even
when such a perception is unwarranted.

The overall description of brand equity incorporates the ability to provide added value to
company’s products and services. This added value can be used to company’s advantage
to charge price premiums, lower marketing costs and offer greater opportunities for
customer purchase. A badly mismanaged brand can actually have negative brand equity,
meaning that potential customers have such low perceptions of the brand that they
prescribe less value to the product than they would if they objectively assessed all its
attributes/features. One of the best examples of brand equity is in the soft drink industry.
Without a brand name and all of the marketing dollars that have gone into it, Coca-Cola
would be nothing more than flavored water. Due to the company’s long-term marketing

5

efforts and protection, enhancement and nurturing of their brand name, Coke is one of the
most recognizable brands in the world. However, even this marketing giant has trouble
capitalizing on its own brand equity when handled improperly (e.g. New Coke). If
someone suddenly took their brand name and brand equity away from them, Coke would
lose hundreds of millions, if not billions, of dollars. This includes lost sales, lost
marketing dollars and lost promotions, additional marketing costs to promote a new
brand, and significantly lower awareness and trial rates for their new brand.

How to Use Brand Equity to the companies Advantage?

Brand equity can provide strategic advantages to company in many ways:

• Allow company to charge a price premium compared to competitors with less
brand equity.
• Strong brand names simplify the decision process for low-cost and nonessential
products.
• Brand name can give comfort to buyers unsure of their decision by reducing their
perceived risk.
• Maintain higher awareness of products.
• Use as leverage when introducing new products.
• Often interpreted as an indicator of quality.
• High brand equity makes sure products are included in most consumers
consideration set.
• Brand can be linked to a quality image that buyers want to be associated with.
• Offer a strong defense against new products and new competitors.
• Can lead to higher rates of product trial and repeat purchasing due to buyers’
awareness of brand, approval of its image/reputation and trust in its quality.

6

Brand names are company assets that must be invested in, protected and nurtured to
maximize their long-term value to company. Brands have many of the same implications
as capital assets (like equipment and plant purchases) on a company’s bottom line,
including the ability to be bought and sold and the ability to provide strategic advantages.

How to Measure Brand Equity?

Most evaluations of brand equity involve utility estimation. Specifically, an attempt to
measure the value (utility) of a product's features and price level and also measure the
overall utility of a product when including brand name. The difference between total
utility and the utility of the product features is the value of the brand. In other situations,
the utility of the brand is measured directly and added to the feature utilities to produce an
overall utility for the product.

Besides utilities, contributing factors such as current awareness levels of each brand,
overall perceptions of each brand, and brands currently used should be measured. It is
also useful to obtain estimates of marketing, advertising and promotional expenses for the
major brands in the market. Together with utility estimates, this information provides a
more complete picture of the relative value of each brand and allows understanding the
major forces driving brand equity: product features, price, market awareness, market
perceptions and expenditures to build and support those brands.

Use of Brand Equity Data

Market simulations are one means of putting brand equity information to use. Using
estimated utilities, we can simulate market preferences for our products and those of the
competition. Various scenarios can be created which involve the introduction of new
products or modifications to existing products to determine the effects of these changes
on market preferences. This information can be used to test:

7

• Extension of product lines with and without the use of an existing brand name.
• Introduction of new products with and without brand name affiliation
• Estimate the monetary value of each brand. Using the conjoint utilities, you
calculate the price differential that your brand could charge versus your
competitors if all companies offered the same features.
• Determine the effects of improving brand equity or reducing your investment in a
high-equity brand.
• Estimate the impact of moving into new geographic areas where your brand name
is unknown or has negative perceptions.
• Estimate the effects of co-branding with a company who has more or less brand
equity than does your brand.
• Track brand equity over time for your company and your competitors. Stop slides
in your own brand equity before it can severely impact your company and adjust
your strategy to counteract changes in competitors’ brand equity.
• Measure effectiveness of your advertising and marketing campaigns to build brand
image

Does Brand Equity Vary Across Customers?

Brand equity does vary across individuals, as we would expect, and we can measure these
differences. The data collected in brand equity studies can also be used to segment the
market into various groups based on the benefits they seek. Using the utility estimates
from the conjoint models, we can identify benefit segments in your market. These
segments can then be compared to each other to highlight differences in brand equity
between various types of product users, different levels of price-sensitivity, different
levels of feature importance. Demographic and psychographic profiles of these benefit
segments can ultimately be used to target specific advertising messages to groups of
potential purchasers based on the desires of those groups. Coupons might be sent to those
in the most price-sensitive segments, while detailed product literature might be sent to
those who place more value on specific features of your products.

8

Brand equity refers to the inherent in a well-known brand name from customer’s
perspective. Brand equity is a added value bestowed on the product by the brand name .it
can be conceptualized from three different perceptive
At the firm level it is the incremental cash flow arising from the use of the brand name.
At the trade level, it is the leverage from the use of brand name.
At the consumer level, it occurs when the customer is familiar with the brand and holds
some favorable, strong and unique association in the memory
consumer based brand equity arises from consumer being more likely to be aware of some
brands in addition to possibly preferring some brands over others .brand equity can also
be defined as a set of assets (liabilities) linked to a brand’s name symbol that adds to (or
subtracts from) the value provided by the product/service to a firm and /or to that of
firm’s customers
The major associations are,

9

Individual determining factors can help increase brand equity or they can influence it
negatively, as happens with products with low perceived quality. Determining factors are
also heavily interrelated, for example, brand perception is an assumed precursor to
effectiveness in other determining factors. A well-known brand encourages the perception
of high quality (long-term brand survival brings us to conclude that the product must be
well made, just as we would assume for services). Consequently, perceived quality
significantly influences brand loyalty. In highly competitive situations, high brand equity
represents a positive differential that ensures certain stability in a company's product
strategies over time. A brand's protective shield allows products to be constantly
reinvented within an environment providing credibility, legitimacy and affection for the
product - thus helping to reduce risk and uncertainty for the company. Furthermore, the
presence of brands with strong personalities means that benefits (to the purchaser/user as
well) go well beyond the simple values communicated by the brand. These benefits are
essentially seen as the simplification of information processing, greater confidence in
product selection and as brand satisfaction. In highly competitive systems, therefore,
demand analysis expressed for a given market becomes essential in order to define the
brand identity to pursue through suitable brand policies aimed at developing solid brand
equity.

2:2 STATEMENT OF THE PROBLEM

mind measuring brand equity is important because understanding why consumers choose

10

2:3 RESEARCH OBJECTIVES

 To identify the customer segment s and its influence on the choice of service
providers
 To identify the brand loyalty of various service providers brands
 To identify the user perception with respect to brand value
 Advertisement recall of various brands
 To identify the perceived quality of various brands
 To identify the major three service providers having more brand equity in
Karnataka
2:4 TYPE OF RESEARCH

Marketing research is the systematic and objective search for and analysis of information
relevant to the identification and solution of any problem in the field of marketing. Type
of research is the research design and plan, structure and strategy of investigation
concerned so as to obtain the answers to research questions and to control the variance, it
is the blue print for the collection, measurement and analysis of data.

2:5 RESEARCH PURPOSE

The purpose of this research is to study about the various cellular providers in Karnataka
and to identify their brand equity .the study was descriptive in nature because from the
data various deductions could be made like

• To identify the customer segment s and its influence on the choice of service
providers
• To identify the brand loyalty of various service providers brands
• To identify the user perception with respect to brand value
• Advertisement recall of various brands
• To identify the perceived quality of various brands
• To identify the major three service providers having more brand equity in
Karnataka

11

2:6 SCOPE OF THE STUDY

Scope means the areas that are covered. Scope of the study states the areas that are
considered for research. this research leads to find out the satisfaction level of customers
of different service providers ,customers expectation and opinion about the service
providers

2:7 DATA COLLECTION DESIGN
The data / information collected from the various sources were divided into two parts.

They are:
a. Primary source
b. Secondary source

Primary source

a. Face to face interview
b. Questionnaire

See annexure for questionnaire

Secondary source

The secondary data is the information, which already exists. The secondary data was
collected from journals, magazines, books, dissertations, and observation of respondents.
The research specific information was less available more emphasis was given on the
primary data.

2:8 HYPOTHESIS

H0a: The customer segment does not influence the brand choice.
χ2 ≥ χ 2 (critical)
H1a: The customer segment influences the brand choice.

12

Method of analysis
The data collected through questionnaire and the records available was examined in
detail. It was further classified and tabulated with the help of Microsoft Excel for the
purpose of analysis to generalize percentages

Statistical tools
χ2 test and Sign test are used for testing the hypothesis

The non-parametric tests used for the testing the hypothesis is “Chi-square test” (m*n
tables) and Sign test It is suitable for the test for independence of attributes.

Chi-square test
χ2 = ∑ [(O-E j) 2 ∕E j]
O = Observed number of cases categorized in the category
E = Expected number of cases in the i th category under Ho

2:9 SAMPLING TECHNIQUE

Sampling is a systematic approach of selecting a few elements (a sample) from entire
collection unit (a population) in order to make some reference about the total population.
It is a small specimen or a segment of the whole population, representing its general
qualities as for as possible.

Non probability sampling

In non-probability sampling, the chance of any particular unit in the population being
selected is unknown, since the randomness is not involved in the selection process. The
three most frequently used non-probability designs are judgment, convenience and quota
sampling.

13

Convenient sampling

As its name implies, convenient sampling refers to collection of information from the
members of the population who are conveniently available to the research. The
convenient sampling method was used for the purpose of data collection.

A sample was chosen keeping in mind the objectives of the research and time constraints,
convenience-sampling method was usual for choosing this sample size. With the use of a
series of focus survey of One Hundred and fifty (150) samples were chosen.

2:10 SAMPLING SIZE

One Hundred and fifty (150) samples were collected from various mobile phone users
from Karnataka state were used for the studies.

2:11 SAMPLING DESIGN

Sampling plan:-An integral component of a research design is the sampling plan,
specifically it addresses three questions.

Whom to survey? (Sampling unit)

How many to survey? (Sample size)

How to select them? (Sampling procedure)

2:12 INSTRUMENTATION TECHNIQUES

Data was collected with the help of using questionnaires. A questionnaire, which is also
known familiarly as an interview schedule with a format containing a list of questions
sequentially ordered to obtain information relevant to the objectives of the study, was
developed. Structure and undisguised questionnaire was chosen as the questions could be

14

presented with exactly the same order to all the respondents. The reason for
standardization was to ensure that all respondents were replying to the same question.

The questionnaire for research included a combination of the following kinds of question

 Close-ended
 Open-ended
 Direct question
 Multiple choice

The questionnaire proved out to be very helpful in conducting the survey.

2:13 METHOD OF DATA COLLECTION

The data’s were collected by contacting the respondents personally at their respective
places (colleges, homes, outlets etc). And few of the information gathered were through
mailed questionnaires for the places where I weren’t in a stage to travel down to those far
away places. The survey was conducted for 30 days from 8th April to 3rd May 07.

2:14 QUESTIONNAIRE DESIGN

Questionnaire was framed by taking expert opinion and the reference of various articles
and research reports

2:15 LIMITATION OF THE STUDY

15

 The study is time consuming and quite expensive
 The study was confined to few selected areas which were the sample environment
 For a survey conducted on subject like this, the sample size should be more than 500,
since time was a major constrain, the sample size was restricted to 100
 Since the area is vast, the researcher could contact only limited number of respondents
 When a group of respondents are answering the questions their responses are mutual
through cross – reference and this may have caused myopia in data, which deal
individual perception
 The researcher has collected data using the questionnaire and therefore the study is
limited to the data collected
 The results of the study will be applicable only to the towns of similar habitations
 The consumer buying behavior may change in future due to various factors

16

CHAPTER 3
INDUSTRY PROFILE

INDUSTRY PROFILE

17

The cellular industry all over the world has been witnessing very high growth rates in
subscriber base in recent years. For developing countries in particular, cellular services
are becoming a very significant proportion of the overall telecom infrastructure. The
mechanics of competition within this market involve complex feedback effects between
individual service providers and with their operating environment, and these forces play
an important role in governing the growth of this industry.
The All India GSM subscriber base continued to grow aggressively in February,
achieving a subscriber base of 115.3 million in February 2007, up from 110.5 million in
January 2007 - recording an addition of nearly 4.9 million during the month under review.
There was an overall growth of 4.4% over the previous month.

3:1 The Indian Mobile Telephony Market

India is going through a telecom revolution, especially in the wireless telephony segment.
The adoption of mobile telephony remains unparallel in scope, as users from diverse
segments increasingly choose to exercise the option of personal mobility. The user base
has been adding 3-4 million subscribers per month (on an average) and recently the
mobile subscriber base crossed
The 100 million mark in April 2006. The success of the market can be gauged from the
fact that mobile user base has surpassed the PC user base in India and very soon the
Indian market will have more mobile users than TV viewers. India is rapidly moving
towards being an evolved mobility market with no distinction between market incumbents
and challengers.

The growing intensity of competition has led to more services for the end user at lower
prices. This has had an effect of stimulating demand and thus increasing the category
adoption rate. As more users have been added to the subscriber base, it has led to a further
downward pressure on operator costs. This has led to further cost benefits to the end user,
fuelling further growth in the subscriber base. The growing subscriber base has also
augured well for industry revenues, which have risen consistently over the last four

18

quarters. However the other side to this growth is that ARPU’s (Average Revenue per
User) have been correspondingly declining quarter on quarter. The average industry
ARPU has fallen from Rs. 375 for Sept ’05 quarter to Rs. 347 for June 2006 quarter, a fall
in ARPU of Rs. 28 per subscriber since Sept ’05 (a decline of 7%)

CHART.3:1

While the decline in ARPU’ has been accelerated by the recent marketing interventions
like lifetime-free schemes; this has been a consistent trend for some time. It is also a
function of the structure of the Indian mobility market. At 80%, the pre-paid segment
completely dominates this Indian mobility market.

CHART.3:2
Subscribers- Prepaid vs. Postpaid Market Split

19

Pre-paid has been a good platform on which the market had grown very fast, as it creates
a volume based platform for tariff reduction. Operators have had a strong focus on the
pre-paid segment as the cost of customer acquisition is very low compared to the post-
paid segment.
Another reason for the strong focus on customer acquisition has been to up the network
valuations, which are largely assessed based on the number of users on it. However the
flip side is that, customer retention has become very difficult. Loyalties in the prepaid
segment are low due to the low switching costs and it is not uncommon for user to
routinely change their numbers and service providers. Pre-paid subscribes are also low
usage subscribers who contribute only 25-30% ARPU’s as compared to the post-paid
segment. Source: IMRB Research
Another aspect to the mobility market has been the constant decline in the call rates;
initially this reduction has been helpful in further increasing the subscriber base and
expanding the Minutes of Use of the existing base.

3:2 Cellular Market Structure in India

20

As in other countries, in India, the Cellular Mobile Service Providers (CMSPs) are
licensed to operate in designated geographical operating areas. The service areas include
four metro areas and 18 circles categorized as A, B and C. The categorization is based on
the revenue potential with category C circles in the lower end of the scale. For example
the metros account for 40% of the subscriber population, with Category-A, B and C
accounting for 33%, 23% and 4% respectively.
As in most of the other countries, Indian cellular market adopted a duopoly market with
licenses given to two Cellular Mobile Service Providers (CMSPs). The first digital
cellular service started in the metros in 1995. A year later, licenses were awarded to two
CMSPs in each of the 18 circles. The third and fourth operator licenses have been issued
recently and the license holders are expected to commence their services soon [12].
Currently, only 900 MHz of the Global Systems for Mobile (GSM) band has been
allocated for cellular services, though the government is considering the Release of 1800
MHz band for cellular operations soon. The CMSPs had to pay an entry fee and
subsequently annual license fee as a percentage of their revenue to the Department of
Telecommunications. The entry and license fees varied according to the service area,
highest for metros and lowest for Category-C circles. Some of the CMSPs could not
fulfill their licensing obligations and their licenses were revoked leading to a monopoly
situation in certain areas. Apart from these charges, each CMSP has to share the revenue
with the long distance operators for carrying inter-service area calls.
In profitable metros and circles, the competition is severe and the market is split between
the two operators.
In a price-cap regulated market, the operators use appropriate pricing strategy to win
customers and win market share. In highly price-elastic markets, such as in India, as the
service provider reduces the price, the subscriber base increases considerably, and so is
the network traffic. The increased network traffic decreases the performance and the
quality of service, inviting customers to switch [3]. Recently being a new entrant in a
metro area, the government operator reduced the airtime charges to such an extent that the
subscriber base increased suddenly leading to poor network performance. The

21

operator did not have enough network capacity to handle calls leading to blocking of
calls, with frustrated customers switching over immediately to competitors. The operators
also have to resort to non-pricing competition strategies to win customers. In India,
CMSPs offer a variety of service plans as a means to attract new customers. Different
service plans include: pre-paid calling card schemes, discounted airtime rates for evening
and night time calls, discounted roaming charges, no or minimum activation fees, and
reduced mobile to mobile long distance call rates. The service providers incur additional
advertising and infrastructure cost for implementing these plans. Short Message Service
(SMS) and Wireless Application Protocol (WAP) service are fast catching up. For
example, in India, about 500,000 SMS messages are being carried by a service provider in
one metro area alone. When the sector moves over to an oligopoly market, the operators
have to provide improved quality of service and value added services in order to survive
and gain market share. Larger operators who have experience and infrastructure may be
able to provide a higher quality of service and other value-added service at a lower price.
They also have access to larger project financing for enlarging their networks and
services. For example, a single large operator now has license to operate in 14 service
areas in the country with the largest footprint to cover most of the areas of the country.
Mergers and acquisitions are commonplace as the operators are consolidating their
revenues to survive in the market places [5].

CHART.3:3

22

Penetration of mobile telephony in India

India is one of the fastest growing mobile markets in the world,

In April 2006 mobile subscriber base crossed 100 million

CHART.3:4

23

Growth of mobile subscriber base has sky-rocketed in last 6years

CHART.3:5
Exponential increase in mobile tele-density is a strong indicator of
growing penetration

24

CHART.3:6
MORE THAN TWO-THIRD OF MOBILE SUBSCRIPTIONS ARE
WITH GSM OPERATORS

25

CHART.3:7

The share of Mobile telephony has been increasing and is considered the
Market of the future

26

CHART.3:8

India is well poised for a strong growth in the telecom sector in the
coming years due to the expanding middle class

27

CHART.3:9

CHART.3:10

Comparison of mobile tariff

28

3:3 GSM MARKET OVERVIEW

• GSM is the fastest growing communications technology of all time.

• The billionth GSM user was connected in Q1 2004 - just a dozen years after the
commercial launch of the first GSM networks

• The second billionth GSM user was connected in Q2 2006 - just two and a half
years after the first billion.

• Today, GSM accounts for 82% of the global mobile market.

• 29% of the global population use GSM technology.

• The GSM Association currently has operator members in 218 countries and
territories.

3:4 MILE STONES

1991-National telecom policy formed, telecom equipment sector liberalized

29

1992-value added services like paging and very small aperture terminals(VATs)opened to
private sector; foreign investment guidelines initiated

1994-giudlines for private sector participation in basic services and cellular services

1996-first round cellular services and basic services launched

1997-telecom authority of India formed

1998-internet service providers’ policy announced, second round of bids completed

1999-new telecom policy, migration from license fees to revenue sharing

2000-national long distance opened, long distance tariff reduced

2001-fourth round of basic service licenses and cellular license finalized

2002-international long distance opened up to private sector

VAS- Definition & Market Size

Mobile value-added services (VAS) are those services that are not part of the basic voice
offer and are availed off separately by the end user. They are used as a tool for
differentiation and allow the mobile operators to develop another stream of revenue.
The nature of value added services change over time. A VAS may become commoditized
and becomes so common place and widely used that it no longer provides meaningful
differentiation on a relative basis.
For example several mobility operators & other stakeholders in the industry no longer
consider P2P SMS as a form of VAS. However for the purpose of estimating the market
size we have taken P2P into account, though we also feel that P2P SMS is ceasing to be a
Meaningful tool for service differentiation.

Current market size

30

The current market as of November 2006 for mobile VAS in India is estimated at Rs.
2850 core.
The current VAS market is expected to grow by 60% for the next year and at the end of
2007 should be close to Rs 4560 core.

Current Growth & Future Potential for Different VAS

To understand the reasons behind the current popularity and predict the future potential
for these services, we have grouped Mobile VAS into three broad heads, based on the
nature of the service offering.

Entertainment VAS- Entertainment VAS is designed for mass appeal and extensive
usage. These provide entertainment for leisure time usage. An example of these kinds of
services is Jokes, Bollywood Ring tones & games. These services are currently very
popular and are driving the revenues for the Indian mobile VAS market
.
Info VAS- These are the services which provide useful information to the end user. The
user interest comes in from the personal component of the content. E.g. Information on
movie tickets, news, banking account etc. These also include productivity services like
missed call information which brings back lost business opportunity for the operators.
They also include user request for information on other product categories like real-estate,
education etc.
MCommerce VAS (Transactional services) - mCommerce VAS allow the use
to conduct a transaction using the mobile phone. These services are in a very nascent
phase and are not really available to most users.
Examples of this kind of service are buying railway tickets or movie tickets through the
mobile phone.

CHART.3:11

31

3:5 SWOT ANALYSIS OF CELLULAR MOBILE INDUSTRY

STRENTHS

 Huge wireless subscriber potential
 Fastest growing mobile market
 Consumers are ready to pay for the cutting edge services
 India possesses cheap labor to attract foreign investments
 Telecom softwares,telecom professionals ,telecom infrastructure and telecom
services are the key players in shaping today’s economy
 Revenue sharing strategies are leading to mergers and acquisitions ,helping
companies to enter new business opportunities, and generate employment
,boosting the countries economy
 Government has started relaxing rules for foreign participants
 Lowest tariff rates in the world

WEAKNESSES
 Market strongly regulated by government body –the telecom regulatory authority
of India (TRAI)
 Existence of entry barriers for private companies
 High cost of service provision
 Low-income country like India cannot afford to replicate
 Expensive telecom infrastructure
OPPORTUNITIES

 India as Asia’s third largest economy, is adding at least one million new mobile
phones users every month
 Mobile phone user base hitting a saturation point in big cities
 Income level in the rural areas rising due to the robust agriculture out put
 Share of the rural market in the countries mobile population is ,however, less than
15%
 Timely policy and regulatory initiatives taken by the government to encourage
foreign players

33

 Cellular phone now being used as the common man’s phones
 Rapid growth expected in the telecom and related services
 Increased availability of brand with has open doors to new schemes making
efficient usage, providing value added services and generating profits
 Foreign investment in form of equity or technology

THREATS
 High level of risks, uncertainty and cost associated with the cellular sector
 Weak intellectual property right protection
 Software and digit content piracy
 Political instability
 Cost of handset also deters a lot of buyers from opting for the service
 China’s early liberalization
 And the fast growing economy may prove to be hindrance for India
 Threats from WLL service providers and also from the satellite phones

34

CHAPTER 4
ANALYSIS AND INTERPRETATION OF DATA

ANALYSIS AND INTERPRETATION OF DATA

35

OBJECTIVE: To find out whether the customer segments influences the selection of
brands.

Hypothesis testing

Step 1
H0: The customer segment does not influence the brand choice
χ2 ≤ χ 2 (critical)

H1: The customer segment influences the brand choice

Step 2
The level of significance is 5%

Step 3
Test statistics

TABLE: 4:A Chi-square test table
BRANDS SPIC AIRTEL HUTCH BSN TATA RELIANC TOTAL
E L INDICO E
M
SEGMENT
STUDENTS 6 25 19 11 3 2 66

BUSINESS 2 7 5 7 7 8 36

EMPLOYEE 4 10 9 10 6 9 48
S
TOTAL 12 42 33 28 16 19 150

Chi2 = ∑ [(Oij-Eij)2 ∕Eij]
O = Observed number of cases categorized in the category
E (Expected number of cases in the ith category under Ho)

36

With correction factor
The correction factor is being used because some of the values in the chi squire table are
below 5

Chi2 = ∑ [(|Oij-Eij|-.5)2 ∕Eij]
TABLE: 4:B

((O-
O(Observed E(expected Oij-Eij Oij-Eij E)-.5)SQ ((O-E)-.5)2/
frequency frequency) Oij-Eij SQUIRE ROOT (|O-E|)-.5 U E

6 5.28 0.72 0.5184 0.72 0.22 0.0484 0.00916667
25 18.48 6.52 42.5104 6.52 6.02 36.2404 1.96106061
19 14.52 4.48 20.0704 4.48 3.98 15.8404 1.09093664
11 12.32 -1.32 1.7424 1.32 0.82 0.6724 0.05457792
3 7.04 -4.04 16.3216 4.04 3.54 12.5316 1.78005682
2 8.36 -6.36 40.4496 6.36 5.86 34.3396 4.10760766
2 2.88 -0.88 0.7744 0.88 0.38 0.1444 0.05013889
7 10.08 -3.08 9.4864 3.08 2.58 6.6564 0.66035714
5 7.92 -2.92 8.5264 2.92 2.42 5.8564 0.73944444
7 6.72 0.28 0.0784 0.28 -0.22 0.0484 0.00720238
7 3.84 3.16 9.9856 3.16 2.66 7.0756 1.84260417
8 4.56 3.44 11.8336 3.44 2.94 8.6436 1.89552632
4 3.84 0.16 0.0256 0.16 -0.34 0.1156 0.03010417
10 13.44 -3.44 11.8336 3.44 2.94 8.6436 0.643125
9 10.56 -1.56 2.4336 1.56 1.06 1.1236 0.10640152
10 8.96 1.04 1.0816 1.04 0.54 0.2916 0.03254464
6 5.12 0.88 0.7744 0.88 0.38 0.1444 0.02820313
9 6.08 2.92 8.5264 2.92 2.42 5.8564 0.96322368
TOTAL 16.0022818

Step 4
Degrees of freedom = (r-1). (c-1), here r= number of rows and c = number of columns
(3-1). (6-1) = 10

37

Critical value = Chi2 (Probability under Ho, Degrees of freedom)

Chi2 (.05, 10) = 18.31
Step 5
Since Chi2 value calculated is less than the critical value, H0 is accepted.
Chi2 (calculated) < Chi2 (Critical value)
16.00 < 18.31

Conclusion
From the above test we can conclude that the customer segments does not influence the
brand choice .As per the responses analyzed, the attributes of the product is the major
factor leads to the choice of mobile service provider

AGE OF RESPONDENTS

TABLE: 4:1
AGE OF RESPONDENTS

38

Age Numbers %
15-25 59 39%
26-35 42 28%
36-45 30 20%
46and above 19 13%

CHART: 4:1

AGE OF RESPONDANTS

13%

39%
20%

28%

15-25 26-35 36-45 46and above

INSIGHTS:

Out of 150 respondents were studied, 39% of the respondents were between the age of 15
to 25, 28% were26-35, 20% were 36-45 and 13 % were the above 46 years old

OCCUPATION OF THE RESPONDENTS

TABLE: 4:2

39

CATEGORY NUMBERS %
STUDENTS 66 44%

BUSINESS 36 24%
EMPLOYEES 48 32%

CHART: 4:2

Occupation

32%
44%

24%

students business employees

INSIGHTS:

The respondents of the study mainly segmented to three category they are students .self
employed and employees. Out of the total population 44% of the respondents were
students, 32% were employees and 24%were business people

BRAND USAGE

TABLE: 4:3

40

BRAND USAGE
BRAND CUSTOMERS %
SPICE 12 8%
HUTCH 33 22%
AIRTEL 42 27%
BSNL 28 195%
TATA
INDICOM 16 11%
RELIANCE 19 135%

CHART: 4:3

BRAND USAGE
13% 8% SPICE

11% 22% HUTCH

AIRTEL

BSNL

19% TATA
INDICOM
27% RELIANCE

INSIGHTS:

Six brands were used for the research .By using the convenient sampling method,27% of
the customers were using AIRTEL ,22% were using HUTCH,19% BSNL,13%
RELIANCE,11%TATA INDICOM AND 8% were using spice .

TYPE OF CONNECTION

TABLE: 4:4

41

TYPE OF
CONNECTION
CONNECTION NUMBERS %
PREPAID 88 58%
POSTPAID 64 42%

CHART: 4:4

TYPE OF CONNECTION

42%

58%

PREPAID POSTPAID

INSIGHTS:

From the total population 58% of the respondents were using prepaid connection and
remaining 42% were using post paid connection

TIME OF USAGE

TABLE: 4:5

42

TIME OF
USAGE
Yrs NUMBERS %
0-1Yrs 38 25%
1-3Yrs 63 42%
4-5Yrs 33 22%
5 Yrs and above 16 11%

CHART: 4: 5

TIME OF USAGE

11%
25%

22%

42%

0-1Yrs 1-3Yrs 4-5Yrs 5 Yrs a nd a bo v e

INSIGHTS:

42% of the respondents were using the same brand in between 1-3 yrs ,25% were using
between 0-1 yrs ,22% were4-5 yrs and 11% were using this brand for more than 5 years

BRAND LOYALTY - SPICE

TABLE: 4:6

43

Yrs NUMBERS %
0-1Yrs 6 50%
1-3Yrs 3 25%
4-5Yrs 2 17%
CHART: 4:6

LOYALTY-SPICE
8%
17%

50%

25%

0-1Yrs 1-3Yrs 4-5Yrs 5 Yrs and above

INSIGHTS:

50% of the SPICE customers are using this brand between 0-1 years, 25%of them are
using between 1-3 years 17% were between 4-5 yrs 8% of them are using this brand for 5
years and above

BRAND LOYALTY- HUTCH

44

TABLE: 4:7

Yrs NUMBERS %
0-1Yrs 4 12%
1-3Yrs 10 30%
4-5Yrs 13 40%

CHART: 4: 7

LOYALTY -HUTCH

18% 12%

30%

40%


INSIGHTS:

40% of the HUTCH customers are using this brand between 0-1 years, 30%of them are
using between 1-3 years 40% were between 4-5 yrs 18% of them are using this brand for
5 years and above

BRAND LOYALTY- AIRTEL

TABLE: 4 8

45

Yrs NUMBERS %
0-1Yrs 4 10%
1-3Yrs 11 26%
4-5Yrs 17 40%

CHART:4: 8

LOYALTY-AIRTEL

10%
24%

26%

40%


INSIGHTS:

10% of the AIRTEL customers are using this brand between 0-1 years, 26%of them are
5 years and above

BRAND LOYALTY- BSNL

TABLE: 4: 9

46

Yrs NUMBERS %
0-1Yrs 4 14%
1-3Yrs 8 29%
4-5Yrs 11 39%

CHART: 4: 9

LOYALTY-BSNL

18% 14%

29%

39%


INSIGHTS:

14% of the BSNL customers are using this brand between 0-1 years, 29%of them are
5 years and above

BRAND LOYALTY- TATA INDICOM

TABLE:4: 10

47

Yrs NUMBERS %
0-1Yrs 5 31%
1-3Yrs 7 44%
4-5Yrs 4 25%
5 Yrs and
above 0

CHART: 4:10

LOYALTY-TATA INDICOM
0%
25%
31%

44%


INSIGHTS:

31% of the TATA INDICOM customers are using this brand between 0-1 years, 44%of
them are using between 1-3 years 25% were between 4-5 yrs .

BRAND LOYALTY- RELIANCE

TABLE: 4: 11

48

Yrs NUMBERS %
0-1Yrs 5 26%
1-3Yrs 8 42%
4-5Yrs 6 32%
5 Yrs and
above 0

CHART: 4: 11

LOYALTY-RELIANCE

0%
26%
32%

42%


INSIGHTS:

26% of the RELIANCE customers are using this brand between 0-1 years, 42%of them
are using between 1-3 years 32% were between 4-5 yrs

BRAND SWICTHING BY CUSTOMERS

TABLE: 4: 12

49

BRAND SWICTHING
STATUS NUMBERS
YES 79
NO 71

CHART: 4: 12

BRAND SWICTHING

47%

53%

YES NO

INSIGHTS:

Out of 150 populations 53 % of the respondents says they were swhiched their service
providers and 47% say they haven’t switched the brands

BRAND SWITCHING

50

TABLE: 4: 13
BRAND NUMBERS
SPICE 24
HUTCH 20
AIRTEL 12
BSNL 6
TATA INDICOM 9
RELIANCE 8

CHART: 4: 13
BRAND SWICHING
30
24
25
20
20
NUMBERS

15 12
9
10 8
6
5

0
SPICE HUTCH AIRTEL BSNL TATA RELIANCE
INDICOM
BRAND

INSIGHTS:

This figure represents the intensity of switching by the customers. out of the 79 switched
customers,24 customers are switched from SPICE ,20 from hutch,12 from AIRTEL ,
6,9,8, from the following brand respectively BSNL ,TATA INDICOM and RELIANCE

CUSTOMER PREFERENCES

TABLE: 4:14

51

PREFERENCES NUMBERS
NETWORK 143
ROAMING 128
OFFERS 132
CUSTOMER CARE 98
CALL COST 110

CHART: 4: 14


160 143
140 128 132

120 110
CUSTOMERS

98
100
80
60
40
20
0
NETWORK ROAMING OFFERS CUSTOMER CALL COST
CARE
PREFERENCES

INSIGHTS:

This figure represents preferences of various customers and also the factors they are
expecting from the service providers .The various factors are Network, Roaming, Offers,
Customer care, Call cost. And also these are the number of customer’s which are given
the opinion respectively143, 128, 132, 98 and110.

TOP BRANDS

TABLE: 4: 15

TOP BRANDS
BRAND NUMBERS

52

AIRTEL 77
HUTCH 44
BSNL 29

CHART: 4: 15

TOP BRANDS

BSNL
19%

AIRTEL
52%
HUTCH
29%

AIRTEL HUTCH BSNL

INSIGHTS:

Based on the analysis conducted 52 % of the respondents said AIRTEL is the leading and
number one brand .29%says HUTCH and 19% said BSNL is the leading brand in
Karnataka.

ADVERTISEMENT RECALL

TABLE: 4:16

BRAND NUMBERS

53

SPICE 2
HUTCH 49
AIRTEL 74
BSNL 2
TATA INDICOM 19
RELIANCE 4

CHART: 4:16


80 74
70
60
49
NUMBERS

50
40
30
19
20
10 2 2 4
0
SPICE HUTCH AIRTEL BSNL TATA RELIANCE
INDICOM
BRANDS

INSIGHTS:

This chart explains the advertisement recall of various brands. The figure is given here is
the number of respondents who could recollect the advertisement in the first glance
.AIRTEL is the leading brand which created a high recollection of advertisement .
74respondents could recollect the AIRTEL advertisement .49 is HUTCH,19 is TATA
INDICOM ,2,2 and 4 is respectively for SPICE ,BSNL and RELIANCE.

RECOLLECTION OF ADVERTISEMENT

TABLE: 4: 17
PARTIALLY 41

54

FULLY 109

CHART: 4: 17


27%

73%

PARTIALLY FULLY

INSIGHTS:

73% of the respondents were recollected the advertisement fully and 27% of the
respondents were recollected partially

BRAND OPINION BY SPICE CUSTOMERS

TABLE: 4: 18
SPICE
1 2 3 4 5
NETWORK 22 82 40 6 0

55

AFTER
SALES 18 58 59 10 5
VALUE
ADDED 15 51 62 17 5
ROAMING 10 25 61 36 18
OFFERS 9 21 81 27 12

CHART: 4: 18
BRAND OPINION-SPICE

90
82 81
80
NETWORK
70
6261 AFTER SALES
58 59
60
CUSTOMERS

51
VALUE ADDED
50
40
40 36 ROAMING

30 27
25 OFFERS
22 21
18 17 18
20 15
12
10 9 10
10 6 5 5
0
0
1 2 3 4 5
RATING

INSIGHTS:

This figure shows the “brand opinion” of the brand SPICE. The opinions were given
based on the various aspects they are Network, after sales services, value added services,
roaming and offers. The rating were given 1-5 which means 1 is worst,2 is bad ,3 is
average ,4 is good and 5 is excellent. Bars are representing each factor for the opinion.
Numbers are given to each bars which represents the numbers of respondents which is
provided the opinion
BRAND OPINION BY HUTCH CUSTOMERS

TABLE: 4:19

HUTCH
1 2 3 4 5

56

NETWORK 10 68 65 11 6
AFTER
SALES 4 12 40 62 32
VALUE
ADDED 9 18 44 59 20
ROAMING 10 38 58 32 12
OFFERS 8 27 60 37 18

CHART: 4: 19
BRAND OPINION -HUTCH
80
68
70 65
62
5860 59
60
NETWORK
CUSTOMERS

50 44
40 AFTER SALES
38 37
40
32 32 VALUE ADDED
30 27
20 18 ROAMING
18
20
10 12 11 12 OFFERS
9 10 8
10 6
4

0
1 2 3 4 5
RATING

INSIGHTS:

This figure shows the “brand opinion” of the brand HUTCH. The opinions were given

BRAND OPINION BY AIRTELCUSTOMERS

TABLE: 4: 20
AIRTEL
1 2 3 4 5
NETWORK 7 29 46 68

57

AFTER
SALES 9 18 75 48
VALUE
ADDED 10 23 64 53
ROAMING 8 21 65 56
OFFERS 16 30 61 43

CHART: 4:20
BRAND OPINION-AIRTEL
80 75
68
70 6465
61
56 NETWORK
60
53
46 48 AFTER SALES
50
CUSTOMERS

43
VALUE ADDED
40
29 30 ROAMING
30
23
21 OFFERS
18
20 16
9 10 8
10 7

0
1 2 3 4 5
RATING

INSIGHTS:

This figure shows the “brand opinion” of the brand AIRTEL. The opinions were given
BRAND OPINION BY BSNL CUSTOMERS
TABLE: 4: 21
BSNL
1 2 3 4 5
NETWORK 10 19 67 54

58

AFTER
SALES 8 27 60 37 18
VALUE
ADDED 9 21 58 50 12
ROAMING 2 18 50 80
OFFERS 4 8 21 68 49

CHART: 4: 21
BRAND OPINION-BSNL
90
80
80
67 68 NETWORK
70
60
58 AFTER SALES
60 54
CUSTOMERS

50 50 49
50 VALUE ADDED

37 ROAMING
40

30 27 OFFERS
21 19 21
18 18
20
10 12
8 9 8
10 4 2
0
1 2 3 4 5
RATING

INSIGHTS:

This figure shows the “brand opinion” of the brand BSNL. The opinions were given
BRAND OPINION BY TATA INDICOM CUSTOMERS

TABLE: 4: 22

TATA INDICOM
1 2 3 4 5

59

NETWORK 10 38 54 40 8
AFTER
SALES 8 29 59 38 16
VALUE
ADDED 10 18 61 43 18
ROAMING 10 38 60 30 12
OFFERS 9 21 65 39 16

CHART: 4: 22

BRAND OPINION-TATA INDICOM

70 65 NETWORK
59 61 60
60 54 AFTER SALES

50 43
40 38 VALUE ADDED
38 38 39
CUSTOMERS

40
29 30 ROAMING
30
21
18 16 18 16 OFFERS
20
10 8 10 10 9 12
8
10

0
1 2 3 4 5
RATING

INSIGHTS:

This figure shows the “brand opinion” of the brand TATA INDICOM. The opinions were
given based on the various aspects they are Network, after sales services, value added
services, roaming and offers. The rating were given 1-5 which means 1 is worst,2 is
bad ,3 is average ,4 is good and 5 is excellent. Bars are representing each factor for the
opinion. Numbers are given to each bars which represents the numbers of respondents
which is provided the opinion
BRAND OPINION BY RELIANCE CUSTOMERS

TABLE: 4: 23
RELIANCE
1 2 3 4 5
NETWORK 6 9 25 61 49

60

AFTER
SALES 10 38 58 34 10
VALUE
ADDED 10 36 64 25 15
ROAMING 9 21 69 39 12
OFFERS 17 51 62 15 5

CHART: 4:23
BRAND OPINION-RELIANCE

80
69 NETWORK
70 64
62 61
58 AFTER SALES
60
51
49 VALUE ADDED
CUSTOMERS

50
38 39 ROAMING
40 36
34

30 OFFERS
25 25
21
20 17
15 15
12
10 10 9 9 10
10 6 5

0
1 2 3 4 5
RATING

INSIGHTS:

This figure shows the “brand opinion” of the brand RELIANCE. The opinions
were given based on the various aspects they are Network, after sales services, value
added services, roaming and offers. The rating were given 1-5 which means 1 is worst,2 is
bad ,3 is average ,4 is good and 5 is excellent. Bars are representing each factor for the
opinion. Numbers are given to each bars which represents the numbers of respondents
which is provided the opinion
BRANDUSAGE- STUDENTS
TABLE: 4:24

BRANDUSAGE
STUDETS

61

BRAND STUDENTS
SPICE 6
HUTCH 19
AIRTEL 25
BSNL 11
TATA INDICOM 3
RELIANCE 2

CHART: 4:24
BRAND USAGE-STUDENTS

5% 3% 9%
17%

29%

37%

SPICE HUTCH AIRTEL BSNL TATA INDICOM RELIANCE

INSIGHTS:

This figure shows that, out of 66 student respondents 37% uses AIRTEL brand ,29%uses
HUTCH,17%uses BSNL,9% uses SPICE ,5% uses TATA INDICOM, and 3% uses
RELIANCE as their service providers

BRANDUSAGE- BUSINESS CLASS

TABLE: 4:25

BRANDUSAGE
BUSINESS CLASS

62

BRAND BUSINESS CLASS
SPICE 2
HUTCH 5
AIRTEL 7
BSNL 7
TATA INDICOM 7
RELIANCE 8

CHART: 4: 25

BRAND USAGE-BUSINESS CLASS

6%
23% 14%

19%
19%

19%


INSIGHTS:

This figure shows that, out of 36 business class customers 19% uses AIRTEL brand ,
14%uses HUTCH,19%uses BSNL,6% uses SPICE ,19% uses TATA INDICOM, and
23% uses RELIANCE as their service providers

BRAND USAGE-EMPLOYEES

TABLE: 4:26
BRAND USAGE
EMPLOYEES
BRAND EMPLOYEES

63

SPICE 4
HUTCH 9
AIRTEL 10
BSNL 10
TATA INDICOM 6
RELIANCE 9

CHART: 4: 26
BRAND USAGE-EMPLOYEES

19% 8%

19%

13%

20%
21%


INSIGHTS:

This figure shows that, out of 48 Employees 20% uses AIRTEL brand ,19%uses
HUTCH,21%uses BSNL,8% uses SPICE ,13% uses TATA INDICOM, and 19% uses
RELIANCE as their service providers

BRAND USAGE COMPARISON

TABLE: 4:27
BUSINESS
BRAND/ STUDENT CLASS
SEGMENT S (66) (36) EMPLOYEES(48)

64

SPICE (12) 6 2 4
HUTCH(33) 19 5 9
AIRTEL(42) 25 7 10
BSNL (28) 11 7 10
TATA
INDICOM(16) 3 7 6
RELIANCE(19) 2 8 9

CHART: 4:27
BRAND USAGE COMPARISON
STUDENTS(66)
30

25
BUSINESS
25
CLASS(36)

20 19
EMPLOYEES(48)
CUSTOMERS

15
11
10 10
10 9 9
8
7 7 7
6 6
5
5 4
3
2 2

0
SPICE (12) HUTCH(33) AIRTEL(42) BSNL (28) TATA RELIANCE(19)
INDICOM(16)
BRANDS

INSIGHTS:

This figure shows the comparison of the usage of various brands between the three
segments of respondent’s .Bars represents the three segments of customers. This figure
shows that students which shows more attachment towards AIRTEL, HUTCH, BSNL and
SPICE. In the business class RELIANCE, TATA INDICOM, BSNL and AIRTEL are the
leading brands respectively .In the case of employees, AIRTEL, BSNL, RELIANCE and
HUTCH are the leading respectively.

65

CHAPTER 5
SUMMARY OF FINDINGS CONCLUSIONS AND
RECOMMENDATION

RESEARCH FINDINGS

66

 Out of 150 respondents were studied, 39% of the respondents are between the age
category of 15 to 25, 28% are 26-35, 20% are 36-45 and 13 % are the above 46
years old.

 As per the hypothetical testing of customer segments and its influence on brand
choice reveals that the customer segments does not influence the brand choice .As
per the responses analyzed, the attributes of the product is the major factor leads to
the choice of mobile service provider.

 The respondents of the study mainly segmented to three categories they are
students, self employed and employees. Out of total population, 44% of the
respondents were students, 32% were employees and 24%were business people.

 Out of Six brands and 150 respondents used, 27% of the customers are using
AIRTEL, 22% are using HUTCH, 19% BSNL, 13% RELIANCE, 11%TATA
INDICOM and 8% are using spice.

 58% of the respondents are using prepaid connection and remaining 42% are using
post paid connection.

 42% of the respondents have been using the same brand from 1-3 yrs ,25% are
using between 0-1 yrs ,22% are 4-5 yrs and 11% are using their brand for more
than 5 years.

 50% of the SPICE customers are using this brand between 0-1 years, 25%of them
are using between 1-3 years 17% were between 4-5 yrs 8% of them are using this
brand for 5 years and above.

 40% of the HUTCH customers are using this brand between 0-1 years, 30%of
them are using between 1-3 years 40% were between 4-5 yrs 18% of them are
using this brand for 5 years and above.

67

 10% of the AIRTEL customers are using this brand between 0-1 years, 26%of
them are using between 1-3 years 40% were between 4-5 yrs 24% of them are
using this brand for 5 years and above.

 31% of the TATA INDICOM customers are using this brand between 0-1 years,
44%of them are using between 1-3 years 25% were between 4-5 yrs .

 14% of the BSNL customers are using this brand between 0-1 years, 29%of them
are using between 1-3 years 39% were between 4-5 yrs 18% of them are using this
brand for 5 years and above.

 26% of the RELIANCE customers are using this brand between 0-1 years, 42%of
them are using between 1-3 years 32% were between 4-5 yrs.

 53 % of the respondents says they were switched their service providers and 47%
say they haven’t switched the brands. Out of the 79 switched customers,24
customers are switched from SPICE ,20 from hutch,12 from AIRTEL ,6,9,8, from
the following brand respectively BSNL ,TATA INDICOM and RELIANCE.

 Customer’s preferences and the factors expecting from the service providers are
the following .Study says Network is the major factor which is suggested by 143
respondents , Roaming, Offers, Customer care, and Call cost are the other factors,
suggested by 128, 132, 98 and110 customers respectively.

 52 % of the respondent says AIRTEL is the leading and number one brand,
29%says HUTCH and 19% said BSNL is the leading brand in Karnataka. The
factors considered in ranking the brand by customers are network, offers after
sales and customer care, value added services and call costs.

68

 .AIRTEL is the leading brand which shows a high recollection of advertisement.
Out of 150 respondents 74 respondents could recollect the AIRTEL advertisement
.49 is HUTCH, 19 is TATA INDICOM, 2, 2 and 4 is respectively for SPICE,
BSNL and RELIANCE.

 73% of the respondents were recollected the advertisement fully and 27% of the
respondents were recollected partially.

 Brand opinion of the brand SPICE or the rating which is given to the brand by the
various customers on the different factors is below average. In network 69% rated
below average, for after sales 50% says below average, for value addition44 says
below average and 41 says average, for roaming 44% said below average and 41
says average and for offers 54%says average.

 HUTCH rated in above average category brand. In network 52% rated below
average and 43 says average, for after sales 62% says above average and
excellent, ,for value addition52% says good ,for roaming 38% says average ,for
offers 40%says average and 36 says above average and good.

 AIRTEL rated as top brand. In network 76% rated good and excellent , for after
sales 82% says above average and excellent, ,for value addition78% says good ,for
roaming 80% above average ,for offers 69%says above average.

 BSNL rated in above average category brand. In network 80% rated above
average and good, for after sales 40% says average and 36% says good,for value
addition 38% says average and 41 says good ,for roaming 86% says good and
excellent ,for offers 78% says above average.

 TATA INDICOM rated in average category brand. In network 36% rated
average , for after sales 39% says average , for value addition 40% says average
and 40% says good ,for roaming 40% says average ,for offers 43% says average.

69

A project report on indian mobile market

A project report on indian mobile market

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to A project report on indian mobile market

Similar to A project report on indian mobile market (20)

More from Projects Kart

More from Projects Kart (20)

Recently uploaded

Recently uploaded (20)

A project report on indian mobile market