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PROJECT REPORT ON

  JOINT VENTURE WITH RESPECT TO TATA DOCOMO




                SUBMITTED BY

               SIDDHESH GOAD




                  T.Y.B.M.S.

                   2012 - 13




               PROJECT GUIDE

          MS ARCHANA DIMBLE-BAGAL




                SUBMITTED TO

            UNIVERSITY OF MUMBAI




VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY

     (AFFILIATED TO UNIVERSITY OF MUMBAI)

        VIDYALANKAR MARG, WADALA (E),

                MUMBAI 400 037

                       1
A Project Report on

JOINT 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
VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY
                             (Affiliated to Mumbai University)



                              Certificate
                              This is to certify that
Mr./Ms. _________________________________ of                           B.M.S
Semester _____ 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 of
Bachelor 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
DECLARATION




               Vidyalankar School of Information Technology

                     (Affiliated to University of Mumbai)

                        Vidyalankar Marg, Wadala (E),

                              Mumbai 400 037




I SIDDHESH GOAD of Vidyalankar School of Information Technology, T.Y.B.M.S
Semester 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
ACKNOWLEDGMENT



      I hereby acknowledge all those who directly or indirectly helped me to draft the
project report. It would not have been possible for me to complete the task without their
help and guidance




      First of all I would like to thank the principal Dr. Rohini Kelkar Madam and the
coordinator 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 giving
guidance for completing the project




      Then I must mention the person who co-operated with me. They not only
rendered time out of their busy scheduled but also answered my queries without
hesitation. He/ She gave me information on their system of working in their organization
and 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 the
project in the syllabus. I must mention my hearty gratitude towards my family, other
faculties and friends who supported me to go ahead with the project.




                                            5
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
INTRODUCTION TO THE STUDY
Aim 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 METHODLOGY

PRIMARY 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
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 2011

Limitation 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
INDEX / CONTENT




Sr.no                   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
15.    Data Analysis
16.     Case Study
17.      Findings
18.   Recommendation
19.     Conclusion
20.      Annexure
21.     Bibliography




                 10
COMPANY PROFILE

            TATA DOCOMO is Tata Teleservices Limited's TTSL telecom service on
the GSM platform arising out of the Tata Group's strategic alliance with Japanese
telecom major NTT DOCOMO in November 2008. Tata Teleservices has received a
pan-India license to operate GSM telecom services, under the brand TATA
DOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and has
already rolled out its services in various circles.

            The launch of the TATA DOCOMO brand marks a significant milestone
Indian telecom landscape, as it stands to redefine the very face of telecoms in India.
Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in the
Japanese market, the company is clearly the preferred mobile phone service provider
with a 50 percent market share.

              NTT DOCOMO has played a major role in the evolution of mobile
telecommunications through its development of cutting-edge technologies and
services. Over the years, technologists at DOCOMO have defined industry
benchmarks like 3G technologies, as also products and services like the i-mode TM,
mobile payment and a plethora of lifestyle-enhancing applications. Today, while most
of the rest of the industry is only beginning to talk of LTE technology and its possible
applications, DOCOMO has already started conducting LTE trials in physical
geographies, not just inside laboratories!

         DOCOMO is also a global leader in the VAS (Value Added Services) space,
both in terms of services and handset designs, particularly integrating services at the
platform stage. The Tata Group-NTT DOCOMO partnership will see offerings such as
these being introduced in the Indian market under the TATA DOCOMO brand.

        TATA DOCOMO has also set up a 'Business and Technology Cooperation
Committee, comprising of senior personnel from both companies. The committee is
responsible for identification of the key areas where the two companies will work
together. DOCOMO, the world‘s leading mobile operator will work closely with Tata


                                           11
Teleservices Limited management and provide know- how on helping the company
develop its GSM business.

        Despite being a late entrant, Tata Indicom, TTSL's CDMA brand, has already
established its presence and is the fastest-growing pan-India operator. Incorporated
in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x technology
platform in India. Today Tata Teleservices Limited, along with Tata Teleservices
(Maharashtra) Ltd, serves over 37 million customers in more than 320,000 towns and
villages across the country offering a wide range of telephony services including
Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wire line
Services.




                                       12
HISTORY

         Tata Teleservices Limited now also has a presence in the GSM space,
through its joint venture with NTT DOCOMO of Japan, and offers differentiated
products and services under the TATA DOCOMO brand name. TATA DOCOMO
arises out of the Tata Group‘s strategic alliance with Japanese telecom major NTT
DOCOMO in November 2008. TATA DOCOMO has received a pan-India license to
operate GSM telecom services and has also been allotted spectrum in 18 telecom
Circles. The company has rolled out GSM services in 14 of India‘s 22 telecom Circles
in a quick span of under six months. The company plans to launch pan-India
operations by the end of FY 2009-10.TATA DOCOMO marks a significant milestone
in the Indian telecom landscape, and has already redefined the very face of telecoms
in India, being the first to pioneer the per- second tariff option-part of its ‗Pay for What
You Use‘ pricing paradigm. Tokyo-based NTT DOCOMO is one of the world‘s leading
mobile operators-in the Japanese market, the company is the clear market leader,
used by over 50% of the country‘s mobile phone users.




                                           13
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
To achieve this

   In order to create a world of more innovative and enriched communications, we
will improve service quality, aggressively move forward with the development of
various services. We will also research and develop a more advanced user-friendly
communications interface, and at the same time we will provide these services and
technologies to an ever expanding area.

Customer Satisfaction:

 Communications those are always ready when needed.
 Capability to contact whomever, from wherever and whenever the customer
   desires.
 Happiness that comes from heart-to-heart communications.
 Bringing customers another step closer to realizing their dreams.
 Responding to every customer with consideration, courtesy and thoroughness.
 Providing products that give customers easy and convenient access to cutting-
   edge functionality.

   To achieve this

 First and foremost, we will fulfill expectations of customers by fulfilling our
   response to their needs through improved service quality, building original
   networks, enriching functionality and expanding the service area. In addition, by
   providing an expanding and ever-improving selection of services at inexpensive
   rates, we will deliver satisfaction to a growing diversity of customers.

 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
 Foster a corporate culture that is not restricted by conventional thinking and
    systems.
 Create a creative office environment that supports the fulfillment of the individual.
 Fostering an "open" corporate culture that welcomes the ideas and views of the
    individual.
 Evaluate personnel based on their merits.
 Build a company that overflows with a challenging spirit.

To achieve this

       By improving our system and programs for the enhancement of human
resources and unifying our human resource development, we will empower each
individual to exert their skills to the utmost of their capabilities and discover new
potential. At the same time, we will strive to create a workplace that motivates
individuals through measures such as improvement of the working environment and
labor conditions and enhancement of health and welfare benefits.

                                       VISION

             We will leverage our strength in executing complex global scale projects
to make leading edge information and communication services affordable by all
individual consumers and business in India. We will offer unparalleled value to create
customer delight and enhance business productivity. We will also generate value for
our capabilities beyond Indian borders while enabling millions of India‘s knowledge
workers to deliver their services globally.




                                          16
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.
   What's more, we are actively realizing 4G technology such as MIMO
   (Multiple-Input-Multiple-Output) multiplexing technology and a wireless


                                        17
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
Disruptive Innovation in the Indian Telecom Industry by Tata Docomo

            Wikipedia defines disruptive innovation as an innovation that improves a
product or service in ways that the market does not expect, typically by being lower
priced or designed for a different set of consumers.
            Indian Telecom space was ―Disrupted‖ by Tata Docomo when they came
out with a ‗1 paisa per second‘ tariff.
              We have earlier seen how Reliance India Mobile changed the mobile
industry by coming up with the lowest tariff in the beginning of this decade. The call
charges were around Rs 2-3 per minute and because of Reliance this was brought
down to around Re 1 per minute.
            Tata Docomo was the next one to employ disruptive innovation in the
Indian mobile industry. Currently the game is not played on the price front but Value
added services front, which is evident from the advertisements of Airtel (Madhavan
and Vidya Balan) and Vodafone (Zoozoos) in the past.
            If Aircel is redefining how telecom operators approach value added
services and GPRS in India, Tata Docomo is doing its bit to change billing practices.
           The joint venture between Tata Teleservices and Japanese telecom major
NTT Docomo officially began rollouts with a plan to invest $2 billion for its pan-India
GSM services.




                                          19
Customer Satisfaction

             The 21 century belongs to the service sector. The customer of yester
year was a silent person who uncomplainingly purchased the goods from the market
place. There is a new customer emerging today. Customer satisfaction can be
defined as, customer satisfaction is the feeling derived by the consumer when he
compares the actual performance of the product‘s with the performance that he
expects of it.

            The measurement of the customer satisfaction typically begging when a
company realizes that their customer s is the people, who provide the revenues that,
hopeful, will cover expenses. Most companies start by establishing a customer
satisfaction baseline. Then they target year by year improvement.

            Understanding customer requirement and delivering superior quality goods
and services to achieve composer satisfaction lead to the retention and growth of the
customer.

General Idea about the satisfied customer:

       Satisfaction is a persona‘s feeling of the pleasure or disappointment. It is
resulting from comparing a product‘s perceived performance with his or her
expectations from it. Satisfaction is more of an emotional concept. Today
organization are aiming at high satisfaction rather than at customer delight because
customers who are

just satisfied still find it easy to switch over when a batter offers comes along. Those
who are highly satisfied are much less ready to switch over. High satisfaction or
delight creates an emotional bound with the brand and customer starts looking at an
offering emotionally and just rationally.

         The aim of marketing is to meet and satisfy target customers needs and
wants but knowing customer is never simple. Customer may state their needs and
wants but act otherwise. They may not be in touch with their deeper motivations.


                                            20
They may respond to influential to change their mind at the last minute. Some of
today‘s most successful companies are raising expectation and delivering
performances to match. These companies are aiming at TCS- Total customer
Satisfaction.

          Increasing competition (whether for-profit or nonprofit) is forcing businesses
to pay much more attention to satisfying customers. In a competitive marketplace
where businesses compete for customers, customer satisfaction is seen as a key
differentiator 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 not
at all a given these days. It is especially important to retain those employees who
interact with customers such as sales people, technical support, and customer-
service people. Many companies give a lot of attention to retaining sales people but
little to support people.

       The increasing trend today is to send customer service and technical support
calls into queue for the next available person. This builds no personal loyalty and
probably less loyalty for the firm. Before going this route, be sure this is what your
customers prefer.




                                         21
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 UK's 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 what
your problem is and then discovering that that person hasn‘t been paying attention and
needs to have it explained again? From a customer‘s point of view, I doubt it. Can the
sales pitches and the product babble. Let the customer talk and show them that you are
listening by making the appropriate responses, such as suggesting how to solve the
problem.




                                             22
MARKETING STRATEGY

         Tata Docomo appears to be banking heavily on its tariff plans the company
is offering a 1 second pulse instead of the usual 1 minute pulse that other telecom
operators are offering. This means that consumers are charged on a per second
basis, instead of a per minute basis, and end up saving money on unused seconds.
A nifty little application ―How much can you really save‖ on Docomo‘s website
explains how this works. Rs. 0.01/second is a marked change from the Re 1/min and
Rs. 0.49/min charges that usually applies.

MARKETING MIX

4P‟S OF MARKETING MIX:

 Product

 Price

 Place

 Promotion.

PRODUCT:

     TATA DOCOMO having good range of services. Tata Docomo provides both
postpaid and prepaid services. Tata Docomo having good quality network which
provides clarity in voice.




PRICE:                                                                         It
having attractive tariff plan: TATA DOCOMO having 1paisa /sec it is applicable for
both prepaid and postpaid.




                                        23
PLACE:                                                                              It
is having good range of channels of distribution: As Tata already exist in this field of
telecommunications as Tata Indicom. It has wide range of channels of distribution to
sell 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 company
offers a 1 second pulse instead of the usual 1 minute pulse that other telecom
operators were offering. This means that consumers are charged on a per second
basis, instead of a per minute basis, and end up saving money on unused seconds.
A fifty little application ―How much can you really save‖ on Docomo‘s website

                                         24
explains how this works. Rs. 0.01/second is a marked change from the Re 1/min and
Rs. 0.49/min charges that usually apply.

        Now while this plan might sound unique, it isn‘t that it hasn‘t been tried before
back in 2004, Tata Indicom had launched 1 second pulse plans, which going by their
current plans, appears to have been shelved.
At present, Tata Docomo has launched voice portals, 24-hour music, cricket
commentary and voice chat, apart from offering free Missed Call Alerts and Voice
Mail.




           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 Tune
search service ‗Genie‘ is also being priced at Rs. 0.02/second. This is a marked
change, again, from the per minute pricing, and can offer consumers cheaper
options.


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 in
the Indian GSM space, Tata-Docomo. The new pricing strategy from Tata-Docomo
has changed the rules of the GSM game, which is dominated by AirTel and
Vodafone. Tata-Docomo also launched its first mobile handset in September 2010.


Mobile pricing innovation – Tata Docomo now charges per website for Mobile
Browsing!
             This is surely a first world over – Tata Docomo have gone ahead and
launched an innovative mobile Internet offering which allows users unlimited usage of
their favorite websites on mobile for a fixed cost.
Tata Docomo has been forefront in coming up with various attractive pricing
schemes, especially, in the pay-per-use paradigm. They were first to introduce pay
per second billing on calls, which now is followed by every mobile service provider.

                                           25
They followed it with pay-per-minute and pay-per-call pricing plans as well which has
made them one of the fastest growing Mobile companies in India.
                 The new pay-per-website offering however, takes it to a complete
different level and unheard of pricing strategy. This is a very thoughtful strategy and
something 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 site
Those with multiple site browsing needs can opt for a combo pack at just Rs 25 per
month.
           Customers have a bundle of options within various categories of social
networking sites (Facebook, Twitter, and Linked In, Orkut), mail options (Gmail,
Yahoo, Rediff) and chat messengers (GTalk, Yahoo! Messenger, Nimbuzz).
          Having said this, there is also a caveat – If you thought it was valid for
unlimited use…it is not.
           Tata Docomo pay per site plan categorizes each service under 2 different
genres – Social Networking Site and Emailing & Instant Messaging. Each site under
this genre is priced at Rs. 10/- bundled with 200 MB free data usage valid for 30
days, post which customers will be charged at 1p/kb. There are also 2 Combo
options SNS Combo Pack and Emailing Combo Pack and each Combo Pack is
priced at Rs. 25/- bundled with 500 MB free data usage post which the customers will
be charged 1p/kb.
           We have been quite impressed the way Tata Docomo have gone about
their innovative pricing models as well as marketing strategies.


         “Per Character” SMS Pricing
         On 8th September 2009, the GSM branch of the Indian carrier Tata
introduced 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 message
basis.



                                         26
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 of
the normal sms charge.


The Impact
    Tata Docomo has gathered significant market share, owing to its pricing
strategies.
     Existing mobile operators are matching the price and the clear winners are the
subscribers since all the competition is sending the prices downhill.
Tata Docomo pricing strategy.




                                         27
ADVERTISING MEDIA CHANNELS

             India Tata Docomo, the youngest among telecom players in India to
offer GSM, is Presently banking on its services to garner visibility and a share in the
telecom pie. The launch of Tata Docomo also announced the intention of the brand to
associate with the thought 'do'. Tata Docomo, for the first time in the country, offered
pay-per-second billing; though other telecom providers have followed suit since. The
company has carried out a few adverts that highlight the brand's unique features and
some other topical advertising during Ganesh Chaturthi and Diwali. The latest from
the GSM provider is the 'Friendship Express' TVC. The ad opens inside train, where
everyone is doing their own thing. A couple of the travelers don't like the solemn
mood and start humming the Docomo tune. Slowly and steadily, others pitch in and
soon most of the train is singing along. The ad ends with the super, 'Why walk alone
when we can dance together'.




                                         28
Tata Docomo launched „ Keep it Simple‟ campaign with Rabir Kapoor!




         Cutting through the clutter that the Indian telecom landscape finds itself in
with customers forced to jostle with confusing and complicated products, services
and tariff plans Tata DOCOMO is ‗Doing the New‘ again, with the launch of its new
brand campaign, aptly titled ‗Keep It Simple‘. Tata DOCOMO‘s unique Keep It
Simple 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 how
Tata DOCOMO simplifies the telecom experience, and hence the consumer‘s life, by
providing differentiated products and services. Each individual advertisement starts
by illustrating a complexity in the category, and presents the Tata DOCOMO product
and/or service as a means of simplifying things. This campaign is simple, captures
the various moods of Ranbir depicting those of Tata DOCOMO




                                        29
Advertisement strategy

       Tata DOCOMO ropes in Ranbir Kapoor as brand ambassador

NEW DELHI: Tata Docomo, the GSM brand of Tata Teleservices (TTSL), today
appointed Bollywood star Ranbir Kapoor as its brand ambassador.

         The company has inked a two-year contract with Kapoor and will roll out
various televisions, print and outdoor campaigns with the actor, starting with the
upcoming Indian Premier League (IPL) tournament.

         "We think Tata Docomo is an inspirational brand and so is the charm and
personality of Ranbir Kapoor, so it is a great match. We will leverage him in various
campaigns to build the brand further," TTSL Head Corporate Marketing Gurinder
Singh Sandhu told PTI.

          Tata DOCOMO will undertake various marketing initiatives with Ranbir
Kapoor, including television commercials, print campaigns, outdoors and retail front
displays, 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 excess
of Rs 50 crore for the 360-degree campaign during the IPL season.

          Other telecom operators like Bharti Airtel, Idea Cellular and Reliance
Communications have also appointed Bollywood stars as their brand ambassadors.
        While Airtel has worked with Shahrukh Khan, Saif Ali Khan and Kareena
Kapoor, Idea Cellular has Abhishek Bachchan as its ambassador. Reliance
Communications has worked with Hrithik Roshan.

        Vodafone, on the other hand, has found success with its 'Zoozoos', the egg
shaped cartoon characters featured in its ad campaign.



                                        30
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
 Haryana

 Chennai

 Eastern Uttar Pradesh

 Western Uttar Pradesh

 Punjab

 Rajasthan ,Recently Launched Aand Rest of West Bengal, Recently
 Launched.




                          32
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 purchase
Minimal cost
Ease of process

How to subscribe:

Dial *141# and choose from Daily plans on local, STD, Night calling, GPRS & Music.




                                       33
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.5



a. GPRS

                                     World Calling
  10MB Free Browsing @ Rs.5 only.



                                     34
10 minutes to USA/Canada @ Rs.20
                                               5 minutes to USA/Canada @ Rs.10


a. Entertainment                           a. Cricket

    15 minutes FREE music @ Rs.5               Cricket Alerts @ Rs.5/day


    Terms and Conditions:

   Daily implies active till 12 midnight on the same day of pack activation. Ex: A
    subscriber activated the pack on 25th Feb'10 then the pack with daily validity will
    expire at midnight of 25th Feburary'10#.
   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 Feb'10 then the pack
    with daily validity will expire at 7 am of 26th Feburary'10#.
   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
Pay Per Site Packs:-


Pay Per Site                Type   MRP(Rs.)   Validity   GPRS    free
                                              (Days)     Usage

Combo Packs

Mail Combo                  Mail   25         30         500MB

‗Social Networking Sites‘   SNS    25         30         500MB
Combo

Mail Packs

Gmail+GTalk                 Mail   10         30         200MB

Rediffmail                  Mail   10         30         200MB

Yahoo Mail                  Mail   10         30         200MB

+

Yahoo Messenger

'Social Networking Sites‟ Packs

Facebook                    SNS    10         30         200MB

Twitter                     SNS    10         30         200MB

LinkedIN                    SNS    10         30         200MB

Orkut                       SNS    10         30         200MB

Nimbuzz                     SNS    10         30         200MB




                                   36
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
Competitor Analysis

         The competition has intensified the past few months with new players and
schemes coming in. There has never been a better time for the customer to get a
mobile phone connection

         There are at least six if not more operators to choose from in ever circle. In
June 09, TATA DOCOMO broke the old system of tariff by introducing per second
billing system. As soon as they did this, the other followed suit with price cuts
everywhere. Suddenly the idea of calls being free was not so outrageous. The prices
were reduced to such an extent that the viability of the business was in questions.
The competitive environment of TATA DOCOMO can be looked at from the following
perspectives.

Market share




                                        38
The government issued fresh licenses in 2008.As a result of this the
market gets crowded though incumbents‟ still hold larger market shares are shown
above. However a point to note is that the new players have lower entry costs with
very deep pockets. They also have no legacy issues like the older players and hence
are more adept to changes market situations. The cost of infrastructure has reduced
dramatically due to the market growth and DOCOMO had an advantage here.

MARKET CAPITALISATION:




      As profits margins are becoming thin, the market capitalization of listed
telecom companies has fallen. Though there have been some signs of recovery




                                       39
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
SWOT ANALYSIS

 STRENGTH

 WEAKNESS

 OPPORTUNITIES

 THREATS




STRENGTHS:

   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
 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
Growth of Telecom

The Indian Telecom sector has proved to be an international success story. The sector
has witnessed a commendable growth over the past two years. With an overall
subscriber base of 914.60 million and a teledensity of 76.03%, the sector continues to
grow from strength to strength.       With the urban teledensity reaching 166.54%, the
market has been showing signs of maturity. Rural India is the key target market likely to
drive the next round of growth, particularly for voice based services. It is envisaged that
rural teledensity of 40% would be reached by end of 2014. 3G and BWA are expected
to reinvigorate the maturing urban markets and help in bringing balanced growth of
economy. The aggressive growth observed by mobile services is yet to be replicated in
case of broadband service, where the subscriber base currently stands at more than 12
million. The Government has a vision to provide telephone connection and broadband
facilities on demand across the country at an affordable price and it strives to achieve
the same.

The growth of telecom sector since 2007:




                Subscribers' base ( in million)
Subscribers
                March'07     March'08 March'09 March'10 March'11 October'11

Wireline        40.77        39.41       37.96      36.96       34.73       33.19

Wireless        165.09       261.08      391.76     584.32      811.60      881.41

Total Phones    205.87       300.49      429.73     621.28      846.33      914.60

Internet        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
Wireless
internet#

# 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. The
number of telephone connections both wireline and wireless put together stands at
914.60 million on 31.10.2011. This registers an addition of 869.83 million connections
by 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 seven
months of the current year 2011-12, the wireless connections grew by 8.60%. The
number of Internet subscribers grew by 22.30%, while the broadband subscribers grew
at 34.43% during the year 2010-11.



Change in composition of sector:

Public vs. Private: The liberalization efforts of the Government are evident in the
growing share of the private sector. The private sector is now playing an important role
in 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
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

  October'1                       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 from
65.32% (134.48 million telephones) at the end of March, 2007 to 85.92% (786 million
telephones) at the end of October, 2011.




                                           45
Wireless vs. Wireline:

       The preference for use of wireless phones has also been predominant in the
sector. This is confirmed from the rising share of wireless phones, which increased from
80.19% (165.09 million) at the end of March, 2007 to 96.37% (881.41 million) at the
end of October, 2011.

Trend in Teledensity:

       Teledensity in the country is steadily increasing from 18.22% as on 31.3.07 to
70.89% as on 31.03.11 and currently stands at 76.03% as on 31.10.11. However, there
is 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 Public
Telephones (VPTs). Apart from the 308.87 million connections provided in the rural
areas, 576350 VPTs have been provided till 31.10.2011.




Policy Reforms and New Initiatives

       For a dynamic sector, reforms are necessitated by dynamics of changes
including technological innovations. The telecom sector in India has been witnessing a
continuous process of reforms since 1991. During the recent years, various policy
initiatives have been carried out to give boost to the sector. Major policy initiatives and
milestones achieved in Telecom Sector include:



A      Mobile Number Portability (MNP):

       MNP was launched by the Prime Minister on January 20, 2011. The MNP service
allows subscribers to retain their existing mobile telephone number even when they
switch from one access service provider to another irrespective of mobile technology or
from one technology to another technology of the same or any other access service
provider within the same service area.

                                            46
Implementation of MNP has not only given wider choices to the Indian
subscribers but has also induced service providers to offer innovative, affordable and
competitive traffic plans for the benefit of the masses. As on November 30, 2011, 19
million mobile customers have successfully ported their mobile numbers to the service
providers‘ of their choice.

B       Telecom Commercial Communications Customer Preference Regulations
2010:

        Telecom Commercial Communications Customer Preference Regulations
(TCCCPR) 2010 came into force on September 27, 2011. TCCCPR 2010 gives options
to customers to exercise their preference, separate number for telemarketers starting
with 140, easy registration of the telemarketers, sharing of database, blacklisting
provisions, filtering of calls and SMS by service providers, effective complaint redressal
system and financial disincentive on access providers.

        In order to curb unsolicited commercial communication, which were a major
cause of disturbance and inconvenience for telecom users, TRAI notified ―Telecom
Unsolicited Commercial Communication Regulations‖ in 2007, putting in place a
framework for controlling unsolicited commercial communications. This regulation was
further improved through two amendments in 2008. As a result of this regulation, the
number of unsolicited calls decreased but the number of unsolicited SMS increased.
The Indian telecom customer demanded more from TRAI, which led to enforcement of
TCCCPR 2010.



C       Foreign Direct Investment (FDI):



        Foreign Direct Investment (FDI) is one of the important sources to meet the
requirement of huge funds for rapid network expansion. The FDI policy provides an
investor-friendly environment for the growth of the telecom sector. Telecom has
emerged as the third major sector attracting FDI inflows after services and computer
software sector. At present, 74% to 100% FDI is permitted for various telecom services.

                                           47
This investment has helped telecom sector to grow. The growth of FDI in Telecom
Sector 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          1901



D       Declining Tariff:

        The telephone tariffs have declined dramatically over the last two years making
the mobile telephone affordable to the common man. There are a large number of
options available for the subscribers to choose from the market depending upon their
usage 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 has
led to the development of the telecom equipment manufacturing and other supporting
industries. With the advent of next-generation technologies and operators looking to roll
out 3G and broadband wireless access services, the demand for telecom equipment
has increased rapidly. In an attempt to capitalize on this opportunity, the Government is
focusing on developing the domestic manufacturing industry. The Indian equipment
manufacturing 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 telecom
equipment manufacturing hub. In 2002-03, India produced telecom equipment worth Rs
144 billion, which increased to Rs 520 billion in 2010-11, making a growth of 265 per
cent.

                                             48
One of the key reasons for this trend is the setting up of domestic manufacturing
facilities by Indian companies along with multinational companies. The market is
currently dominated by multinational companies like Nokia, Nokia Siemens Networks,
Ericsson, Alcatel-Lucent, Motorola, LG Electronics, Samsung etc. which have set up
their production facilities in the country over the past decade and many more are
planning to set up. Also, with Indian as well as multinational companies setting up base
in India, the country is not only emerging as a manufacturing hub but is also planning to
increase its telecom exports. In the year 2006-07, India exported equipment worth Rs
18.98 billion, which increased by over 730 per cent to Rs 158 billion in 2010-11. Indian
mobile handset companies increased their share in the domestic market to 14 per cent
in 2009-10 from 3-4 per cent in 2008-09. Domestic brands have established themselves
in the market and are competing with international handset vendors.



      The Government is supporting the domestic equipment manufacturing industry
and the growth of indigenous technology. With efforts from both the Government and
the industry, India can build a conducive ecosystem to boost the equipment
manufacturing sector, which can lead to the creation of an industry that will compete
with the best in the world. With above initiatives India is expected to be a manufacturing
hub 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
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 will
enable decentralised governance, participative democracy and delivery of basic
services such as health and education to every citizen of the country. The thrust on
manufacturing will promote entrepreneurship, create more job opportunities, reduce
imports and improve security. Efficient usage of scarce resources like spectrum will
result in better quality of service to the customers at affordable cost. The new policy
regime will be beneficial to end consumers/citizens, Telecom Service Providers, Value
Added Service Providers, Government and Manufacturers. Policy is likely to be
approved by the June 2012.



G.    National frequency Allocation Plan:

      The National Frequency Allocation Plan-2011 (NAFP) came into effect from
October 1, 2011 to ensure its efficient and effective management. Radio spectrum is
becoming increasingly important for all walks of life and needs to be managed rationally.

      NAFP-2011 is a policy document which contains spectrum allocation for various
radio communication services/applications in different frequency bands. This document
provides the basis for development, manufacturing and spectrum utilization activities in
the country, both for Government and private sectors.




                                           50
H    Recent initiatives undertaken by USOF:

 The strategy for network expansion in rural areas mainly involves provision of phones
in the viable areas through market mechanism and through Universal Service Obligation
Fund (USOF) in the non-viable areas. While Village Public Telephones (VPTs) will
enable public access, a scheme of Infrastructure sharing by Infrastructure Providers and
Universal Service Providers has been launched under USOF to create infrastructure in
rural 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
Some of the pilot projects undertaken by USOF are as under:-



(i)     Support is being provided for mobile charging stations in 5000 villages through
Tata Energy Research Institute ( TERI) project of Lighting a Billion Lives (LaBL). The
solar mobile charging stations in these 5000 villages are to be provided in a phased
manner over a period of two years from the date of signing of the Agreement. Till
30.04.2011, mobile charging stations have been established in 322 villages.

(ii)    A Memorandum of Understanding (MoU) has been signed with BSNL for
financial support from USOF for provision of Broadband enabled Rural Public
Service Terminals (RPSTs) to eligible Woman SHGs (Self Help Groups) on pilot
basis in the states of HP and Rajasthan. BSNL shall provide an RPST to one eligible
SHG from each of its eligible rural wire-line exchanges under the MoU as per agreed
terms & conditions with subsidy support from USO Fund. At present, 150 RPSTs (100 in
Rajasthan and 50 in HP) have been provided under this scheme.

(iii)   Recognizing the vital role that Information Communication Technology (ICT) can
play in the empowerment of rural women, a scheme has been launched for pilot
projects 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 subsidy
Agreements. At present MoUs have been signed for Proof of Concept (PoC) for 8
mobile VAS projects in the state of Tamilnadu, Kerala, Maharashtra, Uttar Pradesh,
Uttarakhand, Andhra Pradesh, Rajasthan and the Union Territory of Puducherry.




                                           52
I   Implementation of National Optical Fibre Network (NOFN):               All village
Panchayats are to be connected through NOFN to enable delivery of public and
private 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
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
Advertising and its Impact for Tata Docomo

Man in the Airplane - New TATA DOCOMO TV Ad




Celebrity Promotion for Tata Docomo R. Kapour



Ranbir Kapoor dons new avatar for Tata Docomo‟s new campaign

Tata 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 in
IPL Season 5 Refresh the core service differentiators of Tata.



With this campaign, we are reinforcing the core proposition of the brand, and reiterating
the service differentiators that brand Tata DOCOMO offers to its customers, Gurinder
Singh Sandhu, Head, Marketing, Tata Teleservices, said.



The idea here is to communicate effectively the unfairness and rigidity that exists in the
telecom industry, and this has been beautifully conceptualized and executed by way of
drawing analogies with another service industry. An eatery, manned by a grumpy yet
endearing old man; the restaurateur!

                                           55
Commenting on this new avatar, Tata DOCOMO‘s brand ambassador Ranbir Kapoor
said, 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 will like it.
The campaign reflects values that I believe in personally. Transparency, honesty and
true value. This is a brand that believes in DO, and that also strikes a strong chord with
me.

In every promo, Tata DOCOMO differentiators have been talked about, highlighting the
specific consumer pain points that have been contextualized with similar parallels in the
restaurant. Be it the No Unfair Balance Deductions or Enjoy the Best Internet
Experience. Always, Ranbir the restaurateur uses innuendos and raillery in an
uncharacteristic gruff voice to flummox the customer, while driving home Tata
DOCOMO‘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 will
see Tata DOCOMO launching a simple yet refreshingly different approach. While the
first set of exciting promos tickles the audience and drives home our key message, we
will be expanding the ambit and messaging, with various other marketing initiatives also
pushing the message. The TV campaign will be supported with a brand surround
campaign print, outdoors, on-ground and retail, Sandhu added.

Tata DOCOMO is involved with IPL as an associate sponsor with its leading wireless
broadband service brand, Tata DOCOMO Photon Max, which was recently, conferred
the Product of the Year 2012 award for Best Innovation by AC Neilsen. Tata DOCOMO
has been able to foster a strong brand-customer relationship by offering uncomplicated
telecom solutions with no hidden conditions or unwanted service activations.

Ritesh Ghoshal, head – brand marketing, Tata Teleservices, explained, ―Imagine a
world where everyone starts treating you like your telecom operator does. That‘s the
analogy 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 associate
sponsor on IPL, as we have been for the past two years. We use IPL as a media


                                             56
property rather than an association property. We don‘t associate with teams. When the
IPL comes around, all other channels take a hit in viewership; prime time viewership
moves to cricket. The remote comes into the hands of my core TG which is the male
audience 15-45, all over India, and that‘s why we leverage it as a media property.‖

Ranbir Kapoor's New Look Spells Magic! Tata DOCOMO's New Campaign is
Refreshingly Different

Be Smart, Pay Per Second: virtues of per second billing allows customers to save up to
23% on their mobile bills - Campaign refreshes Tata DOCOMO's core service
differentiators of no fine-print, no hidden conditions and no unwarranted balance
deductions - Ranbir Kapoor is endearing in his all-new, unimaginable avatar in IPL
Season 5 Refresh the core service differentiators of Tata




Bengaluru, Karnataka, April 8, 2012 /India PRwire/ -- Cutting through the clutter that the
Indian telecom landscape finds itself in-with customers forced to jostle with confusing
and complicated products, services and tariff plans-Tata DOCOMO is doing a standout
act yet again, with the launch of its new brand campaign that urges customers to pay by
the second, always.

Scheduled to go on air with the Indian Premier League Season 5, the new brand
campaign is simple, drawing attention to the ridiculousness of service paradigms in
telecom. The campaign refreshes the core service differentiators of Tata DOCOMO-no
fine-print, no hidden conditions and no unwarranted balance deductions. Tagged as
innovators and the first to introduce the concept of Pay Per Use, the brand, with this
unique campaign, reinstates the message that paying by the second always benefits the
customer. Tata DOCOMO charges the customer on a per-second pulse-not by the
minute-leading to saving of up to 23% on mobile bills!

                                           57
"With this campaign, we are reinforcing the core proposition of the brand, and reiterating
the service differentiators that brand Tata DOCOMO offers to its customers," Mr
Gurinder Singh Sandhu, Head, Marketing, Tata Teleservices, said. "The idea here
is to communicate effectively the unfairness and rigidity that exists in the telecom
industry, and this has been beautifully conceptualized and executed by way of drawing
analogies with another service industry-an eatery, manned by a grumpy yet endearing
old man; the restaurateur!"

Commenting on this new avatar, Tata DOCOMO's brand ambassador Ranbir Kapoor
said: "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 will
like it. The campaign reflects values that I believe in personally-transparency, honesty
and true value. This is a brand that believes in DO, and that also strikes a strong chord
with me."

In every promo, Tata DOCOMO differentiators have been talked about, highlighting the
specific consumer pain points that have been contextualized with similar parallels in the
restaurant. Be it the 'No Unfair Balance Deductions' or 'Enjoy the Best Internet
Experience. Always', Ranbir the restaurateur uses innuendos and raillery in an
uncharacteristic gruff voice to flummox the customer, while driving home Tata
DOCOMO'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
will see Tata DOCOMO launching a "simple" yet "refreshingly different" approach.
"While the first set of exciting promos tickles the audience and drives home our key
message, we will be expanding the ambit and messaging, with various other marketing
initiatives also pushing the message. The TV campaign will be supported with a brand
surround campaign-print, outdoors, on-ground and retail," Mr Sandhu added.

Tata DOCOMO is involved with IPL as an associate sponsor with its leading wireless
broadband service brand, Tata DOCOMO Photon Max, which was recently conferred
the 'Product of the Year 2011' award for 'Best Innovation' by AC Neilsen.




                                           58
Buying Preference Celebrity Promotion

“Impact of celebrity endorsement on overall brand”

The motif behind total branding may be decocted as an attempt to amalgamate diverse
activities to win customer preference. Apropos to this context, the topic “Impact of
celebrity endorsement on overall brand”, is a significant one. The crescendo of
celebrities 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 can
bestow special attributes upon a product that it may have lacked otherwise. But
everything is not hunky-dory; celebrities are after all mere mortals made of flesh and
blood like us. If a celebrity can aggrandize the merits of a brand, he or she can also
exacerbate the image of a brand.

If I may take the liberty of rephrasing Aristotle‟s quote on anger, “Any brand can get a
celebrity. That is easy. But getting a celebrity consistent with the right brand, to the right
degree, 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 product
and making it stand out due to its name, design, style, symbol, color combination, or
usually a mix of all these.


                                              59
Before we can scrutinize the effects of celebrity endorsement on the overall brand, we
have 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 associations

The celebrity‘s role is the most explicit and profound in incarnating user associations
among the above-mentioned points. To comprehend this, let us analyze the multiplier
effect formula for a successful brand:

S=P* D*AV --the multiplier effect
Where S is a successful brand,
P is an effective product.
D is Distinctive Identity
and AV is Added values.

The realm of the celebrity‘s impact is confined to bestow a distinctive identity and
provide AV to the brand; the celebrity does not have the power to improve or debilitate
the efficiency and features of the core product. Thus, we are gradually approaching an
evident proposition claiming,

“The health of a brand can definitely be improved up to some extent by celebrity
endorsement. But one has to remember that endorsing a celebrity is a means to an end
and not an end in itself.”




                                           60
An appropriately used celebrity can prove to be a massively powerful tool that magnifies
the effects of a campaign. But the aura of cautiousness should always be there. The
fact to be emphasised is that celebrities alone do not guarantee success, as consumers
nowadays 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 this
knowledge makes them cynical about celebrity endorsements.

Compatibility of the celebrity‟s persona with the overall brand image

A celebrity is used to impart credibility and aspirational values to a brand, but the
celebrity needs to match the product. A good brand campaign idea and an intrinsic link
between the celebrity and the message are musts for a successful campaign.
Celebrities are no doubt good at generating attention, recall and positive attitudes
towards advertising provided that they are supporting a good idea and there is an
explicit fit between them and the brand. On the other hand, they are rendered useless
when it comes to the actual efficiency of the core product, creating positive attitudes to
brands, purchase intentions and actual sales.

Certain parameters that postulate compatibility between the celebrity and brand image
are:

       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
Celebrity prior endorsements.

       Whether celebrity is a brand user.

       Celebrity profession.

Successful celebrity endorsements for a brand- An Indian perspective

The latter part of the '80s saw the burgeoning of a new trend in India– brands started
being endorsed by celebrities. Hindi film and TV stars as well as sportspersons were
roped in to endorse prominent brands. Advertisements, featuring stars like Tabassum
(Prestige pressure cookers), Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving
Cream) and Sunil Gavaskar (Dinesh Suitings) became common. Probably, the first ad
to cash in on star power in a strategic, long-term, mission statement kind of way was
Lux soap. This brand has, perhaps as a result of this, been among the top three in the
country for much of its lifetime.

In recent times, we had the Shah Rukh-Santro campaign with the objective of mitigating
the impediment that an unknown Korean brand faced in the Indian market. The
objective was to garner faster brand recognition, association and emotional unity with
the target group. Star power in India can be gauged by the successful endorsement
done by Sharukh for three honchos- Pepsi, Clinic All Clear and Santro. Similarly, when
S Kumars used Hrithik Roshan, then the hottest advertising icon for their launch
advertising for Tamarind, they reckoned they spent 40 - 50 per cent less on media due
to the sheer impact of using Hrithik. Ad recall was as high as 70 per cent, and even the
normally conservative trade got interested.

In the Indian context, it would not be presumptuous to state that celebrity endorsements
can aggrandize the overall brand. We have numerous examples exemplifying this claim.
A standard example here is Coke, which, till recently, didn't use stars at all
internationally. In fact, India was a first for them. The result was a ubiquitously appealing
Aamir cheekily stating Thanda matlab Coca Cola. The recall value for Nakshatra
advertising is only due to the sensuous Aishwarya. The Parker pen brand, which by
itself commands equity, used Amitabh Bachchan to revitalize the brand in India.




                                              62
According to Pooja Jain, Director, Luxor Writing Instruments Ltd (LWIL), post Bachchan,
Parker's 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 its
endorsement. In India there is an exponential potential for a celebrity endorsement to be
perceived 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 lifestyle
fit like sportspersons and footwear, Kapil-Sachin and Boost or film stars and beauty
products.

Some Global Examples:

Globally, firms have been juxtaposing their brands and themselves with celebrity
endorsers. Some successful ongoing global endorsements are as follows:

      Celebrity endorsements have been the bedrock of Pepsi's advertising. Over the
      years, Pepsi has used and continues to use a number of celebrities for general
      market and targeted advertising, including Shaquille O'Neal, 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. Nike's 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
Advantages of a celebrity endorsing a Brand

Brands have been leveraging celebrity appeal for a long time. Across categories,
whether in products or services, more and more brands are banking on the mass
appeal of celebrities. As soon as a new face ascends the popularity charts, advertisers
queue up to have it splashed all over. Witness the spectacular rise of Sania Mirza and
Irfan Pathan in endorsements in a matter of a few months. The accruement of celebrity
endorsements can be justified by the following advantages that are bestowed on the
overall 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
Associative Benefit: A celebrity‘s preference for a brand gives out a persuasive
message - because the celebrity is benefiting from the brand, the consumer will
also benefit.

Mitigating a tarnished image: Cadbury India wanted to restore the consumer's
confidence in its chocolate brands following the high-pitch worms controversy; so
the company appointed Amitabh Bachchan for the job. Last year, when the even
more controversial pesticide issue shook up Coca-Cola and PepsiCo and
resulted in much negative press, both soft drink majors put out high-profile
damage control ad films featuring their best and most expensive celebrities.
While Aamir Khan led the Coke fightback as an ingenious and fastidious Bengali
who finally gets convinced of the product's `purity,' PepsiCo brought Shah Rukh
Khan and Sachin Tendulkar together once again in a television commercial
which drew references to the `safety' of the product indirectly.

Psychographic Connect: Celebrities are loved and adored by their fans and
advertisers use stars to capitalise on these feelings to sway the fans towards
their brand.

Demographic      Connect:     Different   stars   appeal   differently   to   various
demographic segments (age, gender, class, geography etc.).

Mass Appeal: Some stars have a universal appeal and therefore prove to be a
good bet to generate interest among the masses.

Rejuvenating a stagnant brand: With the objective of infusing fresh life into the
stagnant chyawanprash category and staving off competition from various
brands, Dabur India roped in Bachchan for an estimated Rs 8 crore.

Celebrity endorsement can sometimes compensate for lack of innovative
ideas.




                                     65
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 Cola's 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
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
CONCLUSION

Despite the obvious economic advantage of using relatively unknown personalities as
endorsers in advertising campaigns, the choice of celebrities to fulfill that role has
become common practice for brands competing in today's cluttered media environment.
There are several reasons for such extensive use of celebrities. Because of their high
profile, celebrities may help advertisements stand out from the surrounding clutter, thus
improving their communicative ability. Celebrities may also generate extensive PR
leverage for brands. For example, when Revlon launched the "Won't kiss off test" for its
Colorstay lipsticks in 1994 with Cindy Crawford kissing reporters, the campaign featured
on almost every major news channel and equally widely in the press. A brief
assessment of the current market situation indicates, that celebrity endorsement
advertising strategies can, under the right circumstances, indeed justify the high costs
associated with this form of advertising.

But it would be presumptuous to consider celebrity endorsement as a panacea for all
barricades. Celebrity endorsement if used effectively, makes the brand stand out,
galvanizes brand recall and facilitates instant awareness. To achieve this, the marketer
needs to be really disciplined in choice of a celebrity. Hence the right use of celebrity
can escalate the Unique Selling Proposition of a brand to new heights; but a cursory
orientation of a celebrity with a brand may prove to be claustrophobic for the brand. A
celebrity is a means to an end, and not an end in himself/herself.




                                            68
ARTICLE BY TIMES OF INDIA




Tata Tele gets Rs 784 cr equity boost from Docomo

Injection coincides with Tata Group‟s holding company Tata Sons infusing Rs
1,593 cr also as equity

Abhineet Kumar / Mumbai Dec 11, 2012, 17:49 IST




ICICIDirect Demat Account : 0*/- Demat Charges+Earn 4% interest on money in
trading a/c .Apply Now.
www.ICICIdirect.com/DematAccount


Japanese telecom operator NTT Docomo that bought a 26% stake in Tata Teleservices
in 2008 for Rs 13,070 crore ($2.7 billion) in November 2008 has infused additional Rs
784 crore by subscribing to fresh equity in the company in the last two financial years
ending March 2012.

Docomo‘s equity infusion is coincided by Tata Group‘s holding company Sons infusing
Rs 1,593 crore and this way taking its holding to 39.22% at the end of March 2012 from
37.92% a year back. The report does not mention how this increased NTT Docomo‘s
holding in the company. Tata Tele is not listed on stock exchanges and
its spokesperson declined to comment. Query sent to NTT Docomo to confirm its
current share holding did not get any response.

Tata Teleservices is a laggard in the over $100 billion revenue Tata Group. It recorded
a Rs 4,227.9 crore loss in 2011-12, up from Rs 3,508 crore loss a year ago. The


                                           69
Japanese company has an agreement with Tata Sons to sell its 26% stake back to the
Tata Group holding firm if the company does not meet certain performance parameters
by March 31, 2014.

―The agreement has five performance parameters out of that three are met and two are
slightly 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 should
not be any obligation to buy back those shares from Docomo,‖ he said without
specifying the details.

―The capital infusion reflects the hardship that telecom companies are facing at a time
when revenue growth is muted,‖ said Vivekanand Subbaraman, telecom analyst with
foreign brokerage Phillip Capital.

Tata Teleservices has been on a clean-up drive since the group veteran N Srinath took
the reins of the company as managing director and chief executive officer in January
2011. In his leadership, the company deactivated over 10 million inactive mobile
subscribers bringing down the subscriber base to 80.23 million at the end of quarter
ending June. Meanwhile, the company also started putting more focus on data services
using the CDMA technology.

This is believed to have miffed NTT Docomo that partnered with Tata Teleservice for its
launch of GSM-based services. The Japanese company specialises in 3G technology
and content in Japan. ―There are a few Docomo executives who have moved from
Japan to Tata Tele‘s office in Delhi and Mumbai and there are no issues between the
two companies,‖ said the Tata Group source quoted earlier. DOCOMO already has the
right to appoint three directors on the Tata Teleservices board.




                                           70
STATEMENT OF THE PROBLEM

DoCoMo in exit mode from Tata JV?
Aug 07 2012, 16:19 |




Dec 14 2012, 20:36
The time for taking a final call is approaching fast for Tata DoCoMo.
With Tata Teleservices not being able to meet the set goals by Japanese partner NTT
DoCoMo, the joint venture may be pushed on the rocks if the Japanese giant decides to
exercise its option to exit the company.
A report in The Economic Times said that the company has lost 10 million subscribers
since June 2011, after the company shifted its focus to data customers.
A voice strategy is key to survival in today's environment, a consultant has been quoted
as saying in the report.
According to the report, DoCoMo had set certain performance parameters for the Tata
company and it has not been able to meet them.
New entrant Uninor has almost doubled its subscriber base during the period when Tata
DoCoMo witnessed a 10 percent decline in its customer base, the report said.
Moreover, Tata Tele has managed to increase its revenue market share only
marginally.
This has given rise to speculation that DoCoMo may not be interested in staying
invested in the Indian company anymore.
The Japanese telecom major has an option to raise its shareholding to 35 percent or
exit the company.
NTT DoCoMo had bought 26 percent in Tata Telservices for $2.7 billion.
Tata Teleservices' net loss widened to Rs 162 crore from Rs 119 crore a year ago.




                                           71
Revenue earned from Value added Services




                                    72
Technology Acceptance Model (TAM)
The technology acceptance model is an influential extension of Ajzen and Fishbein‘s
theory of reasoned action (TRA). It was introduced and developed by Fred Davis in
1986 (Davis et al., 1989). TAM is a model derived from a theory that addresses the
issue of how users come to accept and use a technology. Themodel suggests that
when users are presented with, for instance, a new software package, a number of
variables influence their decisions about how and when they will use it. There are two
specific variables, perceived usefulness and perceivedease of use, which are
hypothesized to be fundamental determinants of user acceptance. (Davis and Arbor,
1989).




                                         73
Data Analysis and Tabulation

1. Price range of the mobile which you currently use?




                                       74
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Final submission

  • 1. PROJECT REPORT ON JOINT VENTURE WITH RESPECT TO TATA DOCOMO SUBMITTED BY SIDDHESH GOAD T.Y.B.M.S. 2012 - 13 PROJECT GUIDE MS ARCHANA DIMBLE-BAGAL SUBMITTED TO UNIVERSITY OF MUMBAI VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY (AFFILIATED TO UNIVERSITY OF MUMBAI) VIDYALANKAR MARG, WADALA (E), MUMBAI 400 037 1
  • 2. A Project Report on JOINT 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. VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY (Affiliated to Mumbai University) Certificate This is to certify that Mr./Ms. _________________________________ of B.M.S Semester _____ 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 of Bachelor 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. DECLARATION Vidyalankar School of Information Technology (Affiliated to University of Mumbai) Vidyalankar Marg, Wadala (E), Mumbai 400 037 I SIDDHESH GOAD of Vidyalankar School of Information Technology, T.Y.B.M.S Semester 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. ACKNOWLEDGMENT I hereby acknowledge all those who directly or indirectly helped me to draft the project report. It would not have been possible for me to complete the task without their help and guidance First of all I would like to thank the principal Dr. Rohini Kelkar Madam and the coordinator 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 giving guidance for completing the project Then I must mention the person who co-operated with me. They not only rendered time out of their busy scheduled but also answered my queries without hesitation. He/ She gave me information on their system of working in their organization and 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 the project in the syllabus. I must mention my hearty gratitude towards my family, other faculties and friends who supported me to go ahead with the project. 5
  • 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. INTRODUCTION TO THE STUDY Aim 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 METHODLOGY PRIMARY 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. 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 2011 Limitation 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. INDEX / CONTENT Sr.no 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. 15. Data Analysis 16. Case Study 17. Findings 18. Recommendation 19. Conclusion 20. Annexure 21. Bibliography 10
  • 11. COMPANY PROFILE TATA DOCOMO is Tata Teleservices Limited's TTSL telecom service on the GSM platform arising out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Tata Teleservices has received a pan-India license to operate GSM telecom services, under the brand TATA DOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and has already rolled out its services in various circles. The launch of the TATA DOCOMO brand marks a significant milestone Indian telecom landscape, as it stands to redefine the very face of telecoms in India. Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in the Japanese market, the company is clearly the preferred mobile phone service provider with a 50 percent market share. NTT DOCOMO has played a major role in the evolution of mobile telecommunications through its development of cutting-edge technologies and services. Over the years, technologists at DOCOMO have defined industry benchmarks like 3G technologies, as also products and services like the i-mode TM, mobile payment and a plethora of lifestyle-enhancing applications. Today, while most of the rest of the industry is only beginning to talk of LTE technology and its possible applications, DOCOMO has already started conducting LTE trials in physical geographies, not just inside laboratories! DOCOMO is also a global leader in the VAS (Value Added Services) space, both in terms of services and handset designs, particularly integrating services at the platform stage. The Tata Group-NTT DOCOMO partnership will see offerings such as these being introduced in the Indian market under the TATA DOCOMO brand. TATA DOCOMO has also set up a 'Business and Technology Cooperation Committee, comprising of senior personnel from both companies. The committee is responsible for identification of the key areas where the two companies will work together. DOCOMO, the world‘s leading mobile operator will work closely with Tata 11
  • 12. Teleservices Limited management and provide know- how on helping the company develop its GSM business. Despite being a late entrant, Tata Indicom, TTSL's CDMA brand, has already established its presence and is the fastest-growing pan-India operator. Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x technology platform in India. Today Tata Teleservices Limited, along with Tata Teleservices (Maharashtra) Ltd, serves over 37 million customers in more than 320,000 towns and villages across the country offering a wide range of telephony services including Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wire line Services. 12
  • 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 differentiated products and services under the TATA DOCOMO brand name. TATA DOCOMO arises out of the Tata Group‘s strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. TATA DOCOMO has received a pan-India license to operate GSM telecom services and has also been allotted spectrum in 18 telecom Circles. The company has rolled out GSM services in 14 of India‘s 22 telecom Circles in a quick span of under six months. The company plans to launch pan-India operations by the end of FY 2009-10.TATA DOCOMO marks a significant milestone in the Indian telecom landscape, and has already redefined the very face of telecoms in India, being the first to pioneer the per- second tariff option-part of its ‗Pay for What You Use‘ pricing paradigm. Tokyo-based NTT DOCOMO is one of the world‘s leading mobile operators-in the Japanese market, the company is the clear market leader, used by over 50% of the country‘s mobile phone users. 13
  • 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. To achieve this In order to create a world of more innovative and enriched communications, we will improve service quality, aggressively move forward with the development of various services. We will also research and develop a more advanced user-friendly communications interface, and at the same time we will provide these services and technologies to an ever expanding area. Customer Satisfaction:  Communications those are always ready when needed.  Capability to contact whomever, from wherever and whenever the customer desires.  Happiness that comes from heart-to-heart communications.  Bringing customers another step closer to realizing their dreams.  Responding to every customer with consideration, courtesy and thoroughness.  Providing products that give customers easy and convenient access to cutting- edge functionality. To achieve this  First and foremost, we will fulfill expectations of customers by fulfilling our response to their needs through improved service quality, building original networks, enriching functionality and expanding the service area. In addition, by providing an expanding and ever-improving selection of services at inexpensive rates, we will deliver satisfaction to a growing diversity of customers.  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.  Foster a corporate culture that is not restricted by conventional thinking and systems.  Create a creative office environment that supports the fulfillment of the individual.  Fostering an "open" corporate culture that welcomes the ideas and views of the individual.  Evaluate personnel based on their merits.  Build a company that overflows with a challenging spirit. To achieve this By improving our system and programs for the enhancement of human resources and unifying our human resource development, we will empower each individual to exert their skills to the utmost of their capabilities and discover new potential. At the same time, we will strive to create a workplace that motivates individuals through measures such as improvement of the working environment and labor conditions and enhancement of health and welfare benefits. VISION We will leverage our strength in executing complex global scale projects to make leading edge information and communication services affordable by all individual consumers and business in India. We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders while enabling millions of India‘s knowledge workers to deliver their services globally. 16
  • 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. What's more, we are actively realizing 4G technology such as MIMO (Multiple-Input-Multiple-Output) multiplexing technology and a wireless 17
  • 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. Disruptive Innovation in the Indian Telecom Industry by Tata Docomo Wikipedia defines disruptive innovation as an innovation that improves a product or service in ways that the market does not expect, typically by being lower priced or designed for a different set of consumers. Indian Telecom space was ―Disrupted‖ by Tata Docomo when they came out with a ‗1 paisa per second‘ tariff. We have earlier seen how Reliance India Mobile changed the mobile industry by coming up with the lowest tariff in the beginning of this decade. The call charges were around Rs 2-3 per minute and because of Reliance this was brought down to around Re 1 per minute. Tata Docomo was the next one to employ disruptive innovation in the Indian mobile industry. Currently the game is not played on the price front but Value added services front, which is evident from the advertisements of Airtel (Madhavan and Vidya Balan) and Vodafone (Zoozoos) in the past. If Aircel is redefining how telecom operators approach value added services and GPRS in India, Tata Docomo is doing its bit to change billing practices. The joint venture between Tata Teleservices and Japanese telecom major NTT Docomo officially began rollouts with a plan to invest $2 billion for its pan-India GSM services. 19
  • 20. Customer Satisfaction The 21 century belongs to the service sector. The customer of yester year was a silent person who uncomplainingly purchased the goods from the market place. There is a new customer emerging today. Customer satisfaction can be defined as, customer satisfaction is the feeling derived by the consumer when he compares the actual performance of the product‘s with the performance that he expects of it. The measurement of the customer satisfaction typically begging when a company realizes that their customer s is the people, who provide the revenues that, hopeful, will cover expenses. Most companies start by establishing a customer satisfaction baseline. Then they target year by year improvement. Understanding customer requirement and delivering superior quality goods and services to achieve composer satisfaction lead to the retention and growth of the customer. General Idea about the satisfied customer: Satisfaction is a persona‘s feeling of the pleasure or disappointment. It is resulting from comparing a product‘s perceived performance with his or her expectations from it. Satisfaction is more of an emotional concept. Today organization are aiming at high satisfaction rather than at customer delight because customers who are just satisfied still find it easy to switch over when a batter offers comes along. Those who are highly satisfied are much less ready to switch over. High satisfaction or delight creates an emotional bound with the brand and customer starts looking at an offering emotionally and just rationally. The aim of marketing is to meet and satisfy target customers needs and wants but knowing customer is never simple. Customer may state their needs and wants but act otherwise. They may not be in touch with their deeper motivations. 20
  • 21. They may respond to influential to change their mind at the last minute. Some of today‘s most successful companies are raising expectation and delivering performances to match. These companies are aiming at TCS- Total customer Satisfaction. Increasing competition (whether for-profit or nonprofit) is forcing businesses to pay much more attention to satisfying customers. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator 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 not at all a given these days. It is especially important to retain those employees who interact with customers such as sales people, technical support, and customer- service people. Many companies give a lot of attention to retaining sales people but little to support people. The increasing trend today is to send customer service and technical support calls into queue for the next available person. This builds no personal loyalty and probably less loyalty for the firm. Before going this route, be sure this is what your customers prefer. 21
  • 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 UK's 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 what your problem is and then discovering that that person hasn‘t been paying attention and needs to have it explained again? From a customer‘s point of view, I doubt it. Can the sales pitches and the product babble. Let the customer talk and show them that you are listening by making the appropriate responses, such as suggesting how to solve the problem. 22
  • 23. MARKETING STRATEGY Tata Docomo appears to be banking heavily on its tariff plans the company is offering a 1 second pulse instead of the usual 1 minute pulse that other telecom operators are offering. This means that consumers are charged on a per second basis, instead of a per minute basis, and end up saving money on unused seconds. A nifty little application ―How much can you really save‖ on Docomo‘s website explains how this works. Rs. 0.01/second is a marked change from the Re 1/min and Rs. 0.49/min charges that usually applies. MARKETING MIX 4P‟S OF MARKETING MIX:  Product  Price  Place  Promotion. PRODUCT: TATA DOCOMO having good range of services. Tata Docomo provides both postpaid and prepaid services. Tata Docomo having good quality network which provides clarity in voice. PRICE: It having attractive tariff plan: TATA DOCOMO having 1paisa /sec it is applicable for both prepaid and postpaid. 23
  • 24. PLACE: It is having good range of channels of distribution: As Tata already exist in this field of telecommunications as Tata Indicom. It has wide range of channels of distribution to sell 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 company offers a 1 second pulse instead of the usual 1 minute pulse that other telecom operators were offering. This means that consumers are charged on a per second basis, instead of a per minute basis, and end up saving money on unused seconds. A fifty little application ―How much can you really save‖ on Docomo‘s website 24
  • 25. explains how this works. Rs. 0.01/second is a marked change from the Re 1/min and Rs. 0.49/min charges that usually apply. Now while this plan might sound unique, it isn‘t that it hasn‘t been tried before back in 2004, Tata Indicom had launched 1 second pulse plans, which going by their current plans, appears to have been shelved. At present, Tata Docomo has launched voice portals, 24-hour music, cricket commentary and voice chat, apart from offering free Missed Call Alerts and Voice Mail. 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 Tune search service ‗Genie‘ is also being priced at Rs. 0.02/second. This is a marked change, again, from the per minute pricing, and can offer consumers cheaper options. 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 in the Indian GSM space, Tata-Docomo. The new pricing strategy from Tata-Docomo has changed the rules of the GSM game, which is dominated by AirTel and Vodafone. Tata-Docomo also launched its first mobile handset in September 2010. Mobile pricing innovation – Tata Docomo now charges per website for Mobile Browsing! This is surely a first world over – Tata Docomo have gone ahead and launched an innovative mobile Internet offering which allows users unlimited usage of their favorite websites on mobile for a fixed cost. Tata Docomo has been forefront in coming up with various attractive pricing schemes, especially, in the pay-per-use paradigm. They were first to introduce pay per second billing on calls, which now is followed by every mobile service provider. 25
  • 26. They followed it with pay-per-minute and pay-per-call pricing plans as well which has made them one of the fastest growing Mobile companies in India. The new pay-per-website offering however, takes it to a complete different level and unheard of pricing strategy. This is a very thoughtful strategy and something 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 site Those with multiple site browsing needs can opt for a combo pack at just Rs 25 per month. Customers have a bundle of options within various categories of social networking sites (Facebook, Twitter, and Linked In, Orkut), mail options (Gmail, Yahoo, Rediff) and chat messengers (GTalk, Yahoo! Messenger, Nimbuzz). Having said this, there is also a caveat – If you thought it was valid for unlimited use…it is not. Tata Docomo pay per site plan categorizes each service under 2 different genres – Social Networking Site and Emailing & Instant Messaging. Each site under this genre is priced at Rs. 10/- bundled with 200 MB free data usage valid for 30 days, post which customers will be charged at 1p/kb. There are also 2 Combo options SNS Combo Pack and Emailing Combo Pack and each Combo Pack is priced at Rs. 25/- bundled with 500 MB free data usage post which the customers will be charged 1p/kb. We have been quite impressed the way Tata Docomo have gone about their innovative pricing models as well as marketing strategies. “Per Character” SMS Pricing On 8th September 2009, the GSM branch of the Indian carrier Tata introduced 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 message basis. 26
  • 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 of the normal sms charge. The Impact Tata Docomo has gathered significant market share, owing to its pricing strategies. Existing mobile operators are matching the price and the clear winners are the subscribers since all the competition is sending the prices downhill. Tata Docomo pricing strategy. 27
  • 28. ADVERTISING MEDIA CHANNELS India Tata Docomo, the youngest among telecom players in India to offer GSM, is Presently banking on its services to garner visibility and a share in the telecom pie. The launch of Tata Docomo also announced the intention of the brand to associate with the thought 'do'. Tata Docomo, for the first time in the country, offered pay-per-second billing; though other telecom providers have followed suit since. The company has carried out a few adverts that highlight the brand's unique features and some other topical advertising during Ganesh Chaturthi and Diwali. The latest from the GSM provider is the 'Friendship Express' TVC. The ad opens inside train, where everyone is doing their own thing. A couple of the travelers don't like the solemn mood and start humming the Docomo tune. Slowly and steadily, others pitch in and soon most of the train is singing along. The ad ends with the super, 'Why walk alone when we can dance together'. 28
  • 29. Tata Docomo launched „ Keep it Simple‟ campaign with Rabir Kapoor! Cutting through the clutter that the Indian telecom landscape finds itself in with customers forced to jostle with confusing and complicated products, services and tariff plans Tata DOCOMO is ‗Doing the New‘ again, with the launch of its new brand campaign, aptly titled ‗Keep It Simple‘. Tata DOCOMO‘s unique Keep It Simple 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 how Tata DOCOMO simplifies the telecom experience, and hence the consumer‘s life, by providing differentiated products and services. Each individual advertisement starts by illustrating a complexity in the category, and presents the Tata DOCOMO product and/or service as a means of simplifying things. This campaign is simple, captures the various moods of Ranbir depicting those of Tata DOCOMO 29
  • 30. Advertisement strategy Tata DOCOMO ropes in Ranbir Kapoor as brand ambassador NEW DELHI: Tata Docomo, the GSM brand of Tata Teleservices (TTSL), today appointed Bollywood star Ranbir Kapoor as its brand ambassador. The company has inked a two-year contract with Kapoor and will roll out various televisions, print and outdoor campaigns with the actor, starting with the upcoming Indian Premier League (IPL) tournament. "We think Tata Docomo is an inspirational brand and so is the charm and personality of Ranbir Kapoor, so it is a great match. We will leverage him in various campaigns to build the brand further," TTSL Head Corporate Marketing Gurinder Singh Sandhu told PTI. Tata DOCOMO will undertake various marketing initiatives with Ranbir Kapoor, including television commercials, print campaigns, outdoors and retail front displays, 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 excess of Rs 50 crore for the 360-degree campaign during the IPL season. Other telecom operators like Bharti Airtel, Idea Cellular and Reliance Communications have also appointed Bollywood stars as their brand ambassadors. While Airtel has worked with Shahrukh Khan, Saif Ali Khan and Kareena Kapoor, Idea Cellular has Abhishek Bachchan as its ambassador. Reliance Communications has worked with Hrithik Roshan. Vodafone, on the other hand, has found success with its 'Zoozoos', the egg shaped cartoon characters featured in its ad campaign. 30
  • 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.  Haryana  Chennai  Eastern Uttar Pradesh  Western Uttar Pradesh  Punjab  Rajasthan ,Recently Launched Aand Rest of West Bengal, Recently Launched. 32
  • 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 purchase Minimal cost Ease of process How to subscribe: Dial *141# and choose from Daily plans on local, STD, Night calling, GPRS & Music. 33
  • 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.5 a. GPRS World Calling 10MB Free Browsing @ Rs.5 only. 34
  • 35. 10 minutes to USA/Canada @ Rs.20 5 minutes to USA/Canada @ Rs.10 a. Entertainment a. Cricket 15 minutes FREE music @ Rs.5 Cricket Alerts @ Rs.5/day Terms and Conditions:  Daily implies active till 12 midnight on the same day of pack activation. Ex: A subscriber activated the pack on 25th Feb'10 then the pack with daily validity will expire at midnight of 25th Feburary'10#.  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 Feb'10 then the pack with daily validity will expire at 7 am of 26th Feburary'10#.  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. Pay Per Site Packs:- Pay Per Site Type MRP(Rs.) Validity GPRS free (Days) Usage Combo Packs Mail Combo Mail 25 30 500MB ‗Social Networking Sites‘ SNS 25 30 500MB Combo Mail Packs Gmail+GTalk Mail 10 30 200MB Rediffmail Mail 10 30 200MB Yahoo Mail Mail 10 30 200MB + Yahoo Messenger 'Social Networking Sites‟ Packs Facebook SNS 10 30 200MB Twitter SNS 10 30 200MB LinkedIN SNS 10 30 200MB Orkut SNS 10 30 200MB Nimbuzz SNS 10 30 200MB 36
  • 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. Competitor Analysis The competition has intensified the past few months with new players and schemes coming in. There has never been a better time for the customer to get a mobile phone connection There are at least six if not more operators to choose from in ever circle. In June 09, TATA DOCOMO broke the old system of tariff by introducing per second billing system. As soon as they did this, the other followed suit with price cuts everywhere. Suddenly the idea of calls being free was not so outrageous. The prices were reduced to such an extent that the viability of the business was in questions. The competitive environment of TATA DOCOMO can be looked at from the following perspectives. Market share 38
  • 39. The government issued fresh licenses in 2008.As a result of this the market gets crowded though incumbents‟ still hold larger market shares are shown above. However a point to note is that the new players have lower entry costs with very deep pockets. They also have no legacy issues like the older players and hence are more adept to changes market situations. The cost of infrastructure has reduced dramatically due to the market growth and DOCOMO had an advantage here. MARKET CAPITALISATION: As profits margins are becoming thin, the market capitalization of listed telecom companies has fallen. Though there have been some signs of recovery 39
  • 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. SWOT ANALYSIS  STRENGTH  WEAKNESS  OPPORTUNITIES  THREATS STRENGTHS:  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.  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. Growth of Telecom The Indian Telecom sector has proved to be an international success story. The sector has witnessed a commendable growth over the past two years. With an overall subscriber base of 914.60 million and a teledensity of 76.03%, the sector continues to grow from strength to strength. With the urban teledensity reaching 166.54%, the market has been showing signs of maturity. Rural India is the key target market likely to drive the next round of growth, particularly for voice based services. It is envisaged that rural teledensity of 40% would be reached by end of 2014. 3G and BWA are expected to reinvigorate the maturing urban markets and help in bringing balanced growth of economy. The aggressive growth observed by mobile services is yet to be replicated in case of broadband service, where the subscriber base currently stands at more than 12 million. The Government has a vision to provide telephone connection and broadband facilities on demand across the country at an affordable price and it strives to achieve the same. The growth of telecom sector since 2007: Subscribers' base ( in million) Subscribers March'07 March'08 March'09 March'10 March'11 October'11 Wireline 40.77 39.41 37.96 36.96 34.73 33.19 Wireless 165.09 261.08 391.76 584.32 811.60 881.41 Total Phones 205.87 300.49 429.73 621.28 846.33 914.60 Internet 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. Wireless internet# # 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. The number of telephone connections both wireline and wireless put together stands at 914.60 million on 31.10.2011. This registers an addition of 869.83 million connections by 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 seven months of the current year 2011-12, the wireless connections grew by 8.60%. The number of Internet subscribers grew by 22.30%, while the broadband subscribers grew at 34.43% during the year 2010-11. Change in composition of sector: Public vs. Private: The liberalization efforts of the Government are evident in the growing share of the private sector. The private sector is now playing an important role in 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. 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 October'1 128.8 785.7 914.6 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 from 65.32% (134.48 million telephones) at the end of March, 2007 to 85.92% (786 million telephones) at the end of October, 2011. 45
  • 46. Wireless vs. Wireline: The preference for use of wireless phones has also been predominant in the sector. This is confirmed from the rising share of wireless phones, which increased from 80.19% (165.09 million) at the end of March, 2007 to 96.37% (881.41 million) at the end of October, 2011. Trend in Teledensity: Teledensity in the country is steadily increasing from 18.22% as on 31.3.07 to 70.89% as on 31.03.11 and currently stands at 76.03% as on 31.10.11. However, there is 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 Public Telephones (VPTs). Apart from the 308.87 million connections provided in the rural areas, 576350 VPTs have been provided till 31.10.2011. Policy Reforms and New Initiatives For a dynamic sector, reforms are necessitated by dynamics of changes including technological innovations. The telecom sector in India has been witnessing a continuous process of reforms since 1991. During the recent years, various policy initiatives have been carried out to give boost to the sector. Major policy initiatives and milestones achieved in Telecom Sector include: A Mobile Number Portability (MNP): MNP was launched by the Prime Minister on January 20, 2011. The MNP service allows subscribers to retain their existing mobile telephone number even when they switch from one access service provider to another irrespective of mobile technology or from one technology to another technology of the same or any other access service provider within the same service area. 46
  • 47. Implementation of MNP has not only given wider choices to the Indian subscribers but has also induced service providers to offer innovative, affordable and competitive traffic plans for the benefit of the masses. As on November 30, 2011, 19 million mobile customers have successfully ported their mobile numbers to the service providers‘ of their choice. B Telecom Commercial Communications Customer Preference Regulations 2010: Telecom Commercial Communications Customer Preference Regulations (TCCCPR) 2010 came into force on September 27, 2011. TCCCPR 2010 gives options to customers to exercise their preference, separate number for telemarketers starting with 140, easy registration of the telemarketers, sharing of database, blacklisting provisions, filtering of calls and SMS by service providers, effective complaint redressal system and financial disincentive on access providers. In order to curb unsolicited commercial communication, which were a major cause of disturbance and inconvenience for telecom users, TRAI notified ―Telecom Unsolicited Commercial Communication Regulations‖ in 2007, putting in place a framework for controlling unsolicited commercial communications. This regulation was further improved through two amendments in 2008. As a result of this regulation, the number of unsolicited calls decreased but the number of unsolicited SMS increased. The Indian telecom customer demanded more from TRAI, which led to enforcement of TCCCPR 2010. C Foreign Direct Investment (FDI): Foreign Direct Investment (FDI) is one of the important sources to meet the requirement of huge funds for rapid network expansion. The FDI policy provides an investor-friendly environment for the growth of the telecom sector. Telecom has emerged as the third major sector attracting FDI inflows after services and computer software sector. At present, 74% to 100% FDI is permitted for various telecom services. 47
  • 48. This investment has helped telecom sector to grow. The growth of FDI in Telecom Sector 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 1901 D Declining Tariff: The telephone tariffs have declined dramatically over the last two years making the mobile telephone affordable to the common man. There are a large number of options available for the subscribers to choose from the market depending upon their usage 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 has led to the development of the telecom equipment manufacturing and other supporting industries. With the advent of next-generation technologies and operators looking to roll out 3G and broadband wireless access services, the demand for telecom equipment has increased rapidly. In an attempt to capitalize on this opportunity, the Government is focusing on developing the domestic manufacturing industry. The Indian equipment manufacturing 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 telecom equipment manufacturing hub. In 2002-03, India produced telecom equipment worth Rs 144 billion, which increased to Rs 520 billion in 2010-11, making a growth of 265 per cent. 48
  • 49. One of the key reasons for this trend is the setting up of domestic manufacturing facilities by Indian companies along with multinational companies. The market is currently dominated by multinational companies like Nokia, Nokia Siemens Networks, Ericsson, Alcatel-Lucent, Motorola, LG Electronics, Samsung etc. which have set up their production facilities in the country over the past decade and many more are planning to set up. Also, with Indian as well as multinational companies setting up base in India, the country is not only emerging as a manufacturing hub but is also planning to increase its telecom exports. In the year 2006-07, India exported equipment worth Rs 18.98 billion, which increased by over 730 per cent to Rs 158 billion in 2010-11. Indian mobile handset companies increased their share in the domestic market to 14 per cent in 2009-10 from 3-4 per cent in 2008-09. Domestic brands have established themselves in the market and are competing with international handset vendors. The Government is supporting the domestic equipment manufacturing industry and the growth of indigenous technology. With efforts from both the Government and the industry, India can build a conducive ecosystem to boost the equipment manufacturing sector, which can lead to the creation of an industry that will compete with the best in the world. With above initiatives India is expected to be a manufacturing hub 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. 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 will enable decentralised governance, participative democracy and delivery of basic services such as health and education to every citizen of the country. The thrust on manufacturing will promote entrepreneurship, create more job opportunities, reduce imports and improve security. Efficient usage of scarce resources like spectrum will result in better quality of service to the customers at affordable cost. The new policy regime will be beneficial to end consumers/citizens, Telecom Service Providers, Value Added Service Providers, Government and Manufacturers. Policy is likely to be approved by the June 2012. G. National frequency Allocation Plan: The National Frequency Allocation Plan-2011 (NAFP) came into effect from October 1, 2011 to ensure its efficient and effective management. Radio spectrum is becoming increasingly important for all walks of life and needs to be managed rationally. NAFP-2011 is a policy document which contains spectrum allocation for various radio communication services/applications in different frequency bands. This document provides the basis for development, manufacturing and spectrum utilization activities in the country, both for Government and private sectors. 50
  • 51. H Recent initiatives undertaken by USOF: The strategy for network expansion in rural areas mainly involves provision of phones in the viable areas through market mechanism and through Universal Service Obligation Fund (USOF) in the non-viable areas. While Village Public Telephones (VPTs) will enable public access, a scheme of Infrastructure sharing by Infrastructure Providers and Universal Service Providers has been launched under USOF to create infrastructure in rural 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. Some of the pilot projects undertaken by USOF are as under:- (i) Support is being provided for mobile charging stations in 5000 villages through Tata Energy Research Institute ( TERI) project of Lighting a Billion Lives (LaBL). The solar mobile charging stations in these 5000 villages are to be provided in a phased manner over a period of two years from the date of signing of the Agreement. Till 30.04.2011, mobile charging stations have been established in 322 villages. (ii) A Memorandum of Understanding (MoU) has been signed with BSNL for financial support from USOF for provision of Broadband enabled Rural Public Service Terminals (RPSTs) to eligible Woman SHGs (Self Help Groups) on pilot basis in the states of HP and Rajasthan. BSNL shall provide an RPST to one eligible SHG from each of its eligible rural wire-line exchanges under the MoU as per agreed terms & conditions with subsidy support from USO Fund. At present, 150 RPSTs (100 in Rajasthan and 50 in HP) have been provided under this scheme. (iii) Recognizing the vital role that Information Communication Technology (ICT) can play in the empowerment of rural women, a scheme has been launched for pilot projects 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 subsidy Agreements. At present MoUs have been signed for Proof of Concept (PoC) for 8 mobile VAS projects in the state of Tamilnadu, Kerala, Maharashtra, Uttar Pradesh, Uttarakhand, Andhra Pradesh, Rajasthan and the Union Territory of Puducherry. 52
  • 53. I Implementation of National Optical Fibre Network (NOFN): All village Panchayats are to be connected through NOFN to enable delivery of public and private 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. 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. Advertising and its Impact for Tata Docomo Man in the Airplane - New TATA DOCOMO TV Ad Celebrity Promotion for Tata Docomo R. Kapour Ranbir Kapoor dons new avatar for Tata Docomo‟s new campaign Tata 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 in IPL Season 5 Refresh the core service differentiators of Tata. With this campaign, we are reinforcing the core proposition of the brand, and reiterating the service differentiators that brand Tata DOCOMO offers to its customers, Gurinder Singh Sandhu, Head, Marketing, Tata Teleservices, said. The idea here is to communicate effectively the unfairness and rigidity that exists in the telecom industry, and this has been beautifully conceptualized and executed by way of drawing analogies with another service industry. An eatery, manned by a grumpy yet endearing old man; the restaurateur! 55
  • 56. Commenting on this new avatar, Tata DOCOMO‘s brand ambassador Ranbir Kapoor said, 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 will like it. The campaign reflects values that I believe in personally. Transparency, honesty and true value. This is a brand that believes in DO, and that also strikes a strong chord with me. In every promo, Tata DOCOMO differentiators have been talked about, highlighting the specific consumer pain points that have been contextualized with similar parallels in the restaurant. Be it the No Unfair Balance Deductions or Enjoy the Best Internet Experience. Always, Ranbir the restaurateur uses innuendos and raillery in an uncharacteristic gruff voice to flummox the customer, while driving home Tata DOCOMO‘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 will see Tata DOCOMO launching a simple yet refreshingly different approach. While the first set of exciting promos tickles the audience and drives home our key message, we will be expanding the ambit and messaging, with various other marketing initiatives also pushing the message. The TV campaign will be supported with a brand surround campaign print, outdoors, on-ground and retail, Sandhu added. Tata DOCOMO is involved with IPL as an associate sponsor with its leading wireless broadband service brand, Tata DOCOMO Photon Max, which was recently, conferred the Product of the Year 2012 award for Best Innovation by AC Neilsen. Tata DOCOMO has been able to foster a strong brand-customer relationship by offering uncomplicated telecom solutions with no hidden conditions or unwanted service activations. Ritesh Ghoshal, head – brand marketing, Tata Teleservices, explained, ―Imagine a world where everyone starts treating you like your telecom operator does. That‘s the analogy 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 associate sponsor on IPL, as we have been for the past two years. We use IPL as a media 56
  • 57. property rather than an association property. We don‘t associate with teams. When the IPL comes around, all other channels take a hit in viewership; prime time viewership moves to cricket. The remote comes into the hands of my core TG which is the male audience 15-45, all over India, and that‘s why we leverage it as a media property.‖ Ranbir Kapoor's New Look Spells Magic! Tata DOCOMO's New Campaign is Refreshingly Different Be Smart, Pay Per Second: virtues of per second billing allows customers to save up to 23% on their mobile bills - Campaign refreshes Tata DOCOMO's core service differentiators of no fine-print, no hidden conditions and no unwarranted balance deductions - Ranbir Kapoor is endearing in his all-new, unimaginable avatar in IPL Season 5 Refresh the core service differentiators of Tata Bengaluru, Karnataka, April 8, 2012 /India PRwire/ -- Cutting through the clutter that the Indian telecom landscape finds itself in-with customers forced to jostle with confusing and complicated products, services and tariff plans-Tata DOCOMO is doing a standout act yet again, with the launch of its new brand campaign that urges customers to pay by the second, always. Scheduled to go on air with the Indian Premier League Season 5, the new brand campaign is simple, drawing attention to the ridiculousness of service paradigms in telecom. The campaign refreshes the core service differentiators of Tata DOCOMO-no fine-print, no hidden conditions and no unwarranted balance deductions. Tagged as innovators and the first to introduce the concept of Pay Per Use, the brand, with this unique campaign, reinstates the message that paying by the second always benefits the customer. Tata DOCOMO charges the customer on a per-second pulse-not by the minute-leading to saving of up to 23% on mobile bills! 57
  • 58. "With this campaign, we are reinforcing the core proposition of the brand, and reiterating the service differentiators that brand Tata DOCOMO offers to its customers," Mr Gurinder Singh Sandhu, Head, Marketing, Tata Teleservices, said. "The idea here is to communicate effectively the unfairness and rigidity that exists in the telecom industry, and this has been beautifully conceptualized and executed by way of drawing analogies with another service industry-an eatery, manned by a grumpy yet endearing old man; the restaurateur!" Commenting on this new avatar, Tata DOCOMO's brand ambassador Ranbir Kapoor said: "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 will like it. The campaign reflects values that I believe in personally-transparency, honesty and true value. This is a brand that believes in DO, and that also strikes a strong chord with me." In every promo, Tata DOCOMO differentiators have been talked about, highlighting the specific consumer pain points that have been contextualized with similar parallels in the restaurant. Be it the 'No Unfair Balance Deductions' or 'Enjoy the Best Internet Experience. Always', Ranbir the restaurateur uses innuendos and raillery in an uncharacteristic gruff voice to flummox the customer, while driving home Tata DOCOMO'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 will see Tata DOCOMO launching a "simple" yet "refreshingly different" approach. "While the first set of exciting promos tickles the audience and drives home our key message, we will be expanding the ambit and messaging, with various other marketing initiatives also pushing the message. The TV campaign will be supported with a brand surround campaign-print, outdoors, on-ground and retail," Mr Sandhu added. Tata DOCOMO is involved with IPL as an associate sponsor with its leading wireless broadband service brand, Tata DOCOMO Photon Max, which was recently conferred the 'Product of the Year 2011' award for 'Best Innovation' by AC Neilsen. 58
  • 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 diverse activities to win customer preference. Apropos to this context, the topic “Impact of celebrity endorsement on overall brand”, is a significant one. The crescendo of celebrities 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 can bestow special attributes upon a product that it may have lacked otherwise. But everything is not hunky-dory; celebrities are after all mere mortals made of flesh and blood like us. If a celebrity can aggrandize the merits of a brand, he or she can also exacerbate the image of a brand. If I may take the liberty of rephrasing Aristotle‟s quote on anger, “Any brand can get a celebrity. That is easy. But getting a celebrity consistent with the right brand, to the right degree, 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 product and making it stand out due to its name, design, style, symbol, color combination, or usually a mix of all these. 59
  • 60. Before we can scrutinize the effects of celebrity endorsement on the overall brand, we have 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 associations The celebrity‘s role is the most explicit and profound in incarnating user associations among the above-mentioned points. To comprehend this, let us analyze the multiplier effect formula for a successful brand: S=P* D*AV --the multiplier effect Where S is a successful brand, P is an effective product. D is Distinctive Identity and AV is Added values. The realm of the celebrity‘s impact is confined to bestow a distinctive identity and provide AV to the brand; the celebrity does not have the power to improve or debilitate the efficiency and features of the core product. Thus, we are gradually approaching an evident proposition claiming, “The health of a brand can definitely be improved up to some extent by celebrity endorsement. But one has to remember that endorsing a celebrity is a means to an end and not an end in itself.” 60
  • 61. An appropriately used celebrity can prove to be a massively powerful tool that magnifies the effects of a campaign. But the aura of cautiousness should always be there. The fact to be emphasised is that celebrities alone do not guarantee success, as consumers nowadays 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 this knowledge makes them cynical about celebrity endorsements. Compatibility of the celebrity‟s persona with the overall brand image A celebrity is used to impart credibility and aspirational values to a brand, but the celebrity needs to match the product. A good brand campaign idea and an intrinsic link between the celebrity and the message are musts for a successful campaign. Celebrities are no doubt good at generating attention, recall and positive attitudes towards advertising provided that they are supporting a good idea and there is an explicit fit between them and the brand. On the other hand, they are rendered useless when it comes to the actual efficiency of the core product, creating positive attitudes to brands, purchase intentions and actual sales. Certain parameters that postulate compatibility between the celebrity and brand image are: 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. Celebrity prior endorsements. Whether celebrity is a brand user. Celebrity profession. Successful celebrity endorsements for a brand- An Indian perspective The latter part of the '80s saw the burgeoning of a new trend in India– brands started being endorsed by celebrities. Hindi film and TV stars as well as sportspersons were roped in to endorse prominent brands. Advertisements, featuring stars like Tabassum (Prestige pressure cookers), Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings) became common. Probably, the first ad to cash in on star power in a strategic, long-term, mission statement kind of way was Lux soap. This brand has, perhaps as a result of this, been among the top three in the country for much of its lifetime. In recent times, we had the Shah Rukh-Santro campaign with the objective of mitigating the impediment that an unknown Korean brand faced in the Indian market. The objective was to garner faster brand recognition, association and emotional unity with the target group. Star power in India can be gauged by the successful endorsement done by Sharukh for three honchos- Pepsi, Clinic All Clear and Santro. Similarly, when S Kumars used Hrithik Roshan, then the hottest advertising icon for their launch advertising for Tamarind, they reckoned they spent 40 - 50 per cent less on media due to the sheer impact of using Hrithik. Ad recall was as high as 70 per cent, and even the normally conservative trade got interested. In the Indian context, it would not be presumptuous to state that celebrity endorsements can aggrandize the overall brand. We have numerous examples exemplifying this claim. A standard example here is Coke, which, till recently, didn't use stars at all internationally. In fact, India was a first for them. The result was a ubiquitously appealing Aamir cheekily stating Thanda matlab Coca Cola. The recall value for Nakshatra advertising is only due to the sensuous Aishwarya. The Parker pen brand, which by itself commands equity, used Amitabh Bachchan to revitalize the brand in India. 62
  • 63. According to Pooja Jain, Director, Luxor Writing Instruments Ltd (LWIL), post Bachchan, Parker's 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 its endorsement. In India there is an exponential potential for a celebrity endorsement to be perceived 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 lifestyle fit like sportspersons and footwear, Kapil-Sachin and Boost or film stars and beauty products. Some Global Examples: Globally, firms have been juxtaposing their brands and themselves with celebrity endorsers. Some successful ongoing global endorsements are as follows: Celebrity endorsements have been the bedrock of Pepsi's advertising. Over the years, Pepsi has used and continues to use a number of celebrities for general market and targeted advertising, including Shaquille O'Neal, 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. Nike's 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. Advantages of a celebrity endorsing a Brand Brands have been leveraging celebrity appeal for a long time. Across categories, whether in products or services, more and more brands are banking on the mass appeal of celebrities. As soon as a new face ascends the popularity charts, advertisers queue up to have it splashed all over. Witness the spectacular rise of Sania Mirza and Irfan Pathan in endorsements in a matter of a few months. The accruement of celebrity endorsements can be justified by the following advantages that are bestowed on the overall 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. Associative Benefit: A celebrity‘s preference for a brand gives out a persuasive message - because the celebrity is benefiting from the brand, the consumer will also benefit. Mitigating a tarnished image: Cadbury India wanted to restore the consumer's confidence in its chocolate brands following the high-pitch worms controversy; so the company appointed Amitabh Bachchan for the job. Last year, when the even more controversial pesticide issue shook up Coca-Cola and PepsiCo and resulted in much negative press, both soft drink majors put out high-profile damage control ad films featuring their best and most expensive celebrities. While Aamir Khan led the Coke fightback as an ingenious and fastidious Bengali who finally gets convinced of the product's `purity,' PepsiCo brought Shah Rukh Khan and Sachin Tendulkar together once again in a television commercial which drew references to the `safety' of the product indirectly. Psychographic Connect: Celebrities are loved and adored by their fans and advertisers use stars to capitalise on these feelings to sway the fans towards their brand. Demographic Connect: Different stars appeal differently to various demographic segments (age, gender, class, geography etc.). Mass Appeal: Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. Rejuvenating a stagnant brand: With the objective of infusing fresh life into the stagnant chyawanprash category and staving off competition from various brands, Dabur India roped in Bachchan for an estimated Rs 8 crore. Celebrity endorsement can sometimes compensate for lack of innovative ideas. 65
  • 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 Cola's 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. 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. CONCLUSION Despite the obvious economic advantage of using relatively unknown personalities as endorsers in advertising campaigns, the choice of celebrities to fulfill that role has become common practice for brands competing in today's cluttered media environment. There are several reasons for such extensive use of celebrities. Because of their high profile, celebrities may help advertisements stand out from the surrounding clutter, thus improving their communicative ability. Celebrities may also generate extensive PR leverage for brands. For example, when Revlon launched the "Won't kiss off test" for its Colorstay lipsticks in 1994 with Cindy Crawford kissing reporters, the campaign featured on almost every major news channel and equally widely in the press. A brief assessment of the current market situation indicates, that celebrity endorsement advertising strategies can, under the right circumstances, indeed justify the high costs associated with this form of advertising. But it would be presumptuous to consider celebrity endorsement as a panacea for all barricades. Celebrity endorsement if used effectively, makes the brand stand out, galvanizes brand recall and facilitates instant awareness. To achieve this, the marketer needs to be really disciplined in choice of a celebrity. Hence the right use of celebrity can escalate the Unique Selling Proposition of a brand to new heights; but a cursory orientation of a celebrity with a brand may prove to be claustrophobic for the brand. A celebrity is a means to an end, and not an end in himself/herself. 68
  • 69. ARTICLE BY TIMES OF INDIA Tata Tele gets Rs 784 cr equity boost from Docomo Injection coincides with Tata Group‟s holding company Tata Sons infusing Rs 1,593 cr also as equity Abhineet Kumar / Mumbai Dec 11, 2012, 17:49 IST ICICIDirect Demat Account : 0*/- Demat Charges+Earn 4% interest on money in trading a/c .Apply Now. www.ICICIdirect.com/DematAccount Japanese telecom operator NTT Docomo that bought a 26% stake in Tata Teleservices in 2008 for Rs 13,070 crore ($2.7 billion) in November 2008 has infused additional Rs 784 crore by subscribing to fresh equity in the company in the last two financial years ending March 2012. Docomo‘s equity infusion is coincided by Tata Group‘s holding company Sons infusing Rs 1,593 crore and this way taking its holding to 39.22% at the end of March 2012 from 37.92% a year back. The report does not mention how this increased NTT Docomo‘s holding in the company. Tata Tele is not listed on stock exchanges and its spokesperson declined to comment. Query sent to NTT Docomo to confirm its current share holding did not get any response. Tata Teleservices is a laggard in the over $100 billion revenue Tata Group. It recorded a Rs 4,227.9 crore loss in 2011-12, up from Rs 3,508 crore loss a year ago. The 69
  • 70. Japanese company has an agreement with Tata Sons to sell its 26% stake back to the Tata Group holding firm if the company does not meet certain performance parameters by March 31, 2014. ―The agreement has five performance parameters out of that three are met and two are slightly 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 should not be any obligation to buy back those shares from Docomo,‖ he said without specifying the details. ―The capital infusion reflects the hardship that telecom companies are facing at a time when revenue growth is muted,‖ said Vivekanand Subbaraman, telecom analyst with foreign brokerage Phillip Capital. Tata Teleservices has been on a clean-up drive since the group veteran N Srinath took the reins of the company as managing director and chief executive officer in January 2011. In his leadership, the company deactivated over 10 million inactive mobile subscribers bringing down the subscriber base to 80.23 million at the end of quarter ending June. Meanwhile, the company also started putting more focus on data services using the CDMA technology. This is believed to have miffed NTT Docomo that partnered with Tata Teleservice for its launch of GSM-based services. The Japanese company specialises in 3G technology and content in Japan. ―There are a few Docomo executives who have moved from Japan to Tata Tele‘s office in Delhi and Mumbai and there are no issues between the two companies,‖ said the Tata Group source quoted earlier. DOCOMO already has the right to appoint three directors on the Tata Teleservices board. 70
  • 71. STATEMENT OF THE PROBLEM DoCoMo in exit mode from Tata JV? Aug 07 2012, 16:19 | Dec 14 2012, 20:36 The time for taking a final call is approaching fast for Tata DoCoMo. With Tata Teleservices not being able to meet the set goals by Japanese partner NTT DoCoMo, the joint venture may be pushed on the rocks if the Japanese giant decides to exercise its option to exit the company. A report in The Economic Times said that the company has lost 10 million subscribers since June 2011, after the company shifted its focus to data customers. A voice strategy is key to survival in today's environment, a consultant has been quoted as saying in the report. According to the report, DoCoMo had set certain performance parameters for the Tata company and it has not been able to meet them. New entrant Uninor has almost doubled its subscriber base during the period when Tata DoCoMo witnessed a 10 percent decline in its customer base, the report said. Moreover, Tata Tele has managed to increase its revenue market share only marginally. This has given rise to speculation that DoCoMo may not be interested in staying invested in the Indian company anymore. The Japanese telecom major has an option to raise its shareholding to 35 percent or exit the company. NTT DoCoMo had bought 26 percent in Tata Telservices for $2.7 billion. Tata Teleservices' net loss widened to Rs 162 crore from Rs 119 crore a year ago. 71
  • 72. Revenue earned from Value added Services 72
  • 73. Technology Acceptance Model (TAM) The technology acceptance model is an influential extension of Ajzen and Fishbein‘s theory of reasoned action (TRA). It was introduced and developed by Fred Davis in 1986 (Davis et al., 1989). TAM is a model derived from a theory that addresses the issue of how users come to accept and use a technology. Themodel suggests that when users are presented with, for instance, a new software package, a number of variables influence their decisions about how and when they will use it. There are two specific variables, perceived usefulness and perceivedease of use, which are hypothesized to be fundamental determinants of user acceptance. (Davis and Arbor, 1989). 73
  • 74. Data Analysis and Tabulation 1. Price range of the mobile which you currently use? 74