Uploaded byJonty Mohta
NEW BUSINESS DEVELOPMENT
The document provides an overview of the global and national telecom industry and market scenario in India. It analyzes the political, economic, social, and technological factors affecting the industry. It discusses key competitors in India and their respective market shares. Rural and urban demographic characteristics are examined. Finally, it performs a Porter's 5 forces analysis and BCG matrix analysis to evaluate opportunities and threats for a new proposed telecom company called G-Next Telecom.
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NEW BUSINESS DEVELOPMENT
- 1. Where Do YouWant to Go Today ; Your Potential Our Passion BUSINESS PLAN FOR NEW TELECOME COMPANY G-NEXT TELECOM SERVICES Jonty Mohta
- 2. Industrial Scenario -Global 2 Generate – USD 1.4 trillion (Year 2009) – Recession times Asia – Pacific Region : expecting highest growth in next 5 years. 16% - India & China Latin America & Caribbean – 12% China (largest telecom operator) – 50% to rural areas Asia – booming market Japan 3rd largest – 30 million broadband users after US & China. 6 October 2012
- 3. Mobile Subscriber Base(% Share Of World) 3 Source: EIU (Economist Intelligence Unit) 6 October 2012
- 4. National Scenario 4 Emerged – largest & fastest economy Recession – but growth in economy Service Sector – primary engine growth Telecom Sector – significant contribution Private players Indian Mobile Market – attractive across the globe Internet/Broadband subscribers - 14.05m internet subscribers & 6.62m broadband subscribers (Jan 2010) Advanced Technologies – GSM, CDMA, WLL, 3G , 4G and upcoming 5G Source: EIU (Economist Intelligence Unit) 6 October 2012
- 5. Market Scenario 5 Adding 8-10 million subscribers every month Potential of 700 million subscribers in next 5 years. Mobile subscribers – 350 million, 2nd only to China. MVAS accounts for 10% of the total revenue. Stanford University Study – MVAS touch US $ 2.74 billion by 2011. Tata Teleservices – invest an additional US $ 1 billion in TATA DoCoMo BSNL – will put US $ 1.16 billion in WiMax Project Vodafone Essar – invest US $ 6 billion next 3 years to increase mobile subscriber base Bharti Airtel – US $ 126.5 million to strengthen Assam & Northeast Circles. 6 October 2012
- 6. Contd… 6 Contribution of nearly 1.2% to India’s GDP world’s fastest growing telecom industry 706.37 million subscribers (landline & mobile ) World’s 2nd largest network after China Upcoming services like 3G and Portability will help to further increase the growth rate. Source: EIU (Economist Intelligence Unit) 6 October 2012
- 7. Why Telecom industry??? 7 STATE Subscriber base Population Mobile phase /1000 Uttar Pradesh 85,185,307 199,415,942 427 Maharashtra 78,020,851 110,351,688 707 Tamil Nadu 59,709,707 67,773,611 881 Andhra Pradesh 50,507,427 84,241,069 579 West Bengal 47,088,259 90,524,849 520 Bihar 41,898,468 97,560,027 430 Karnataka 41,804,172 58,969,294 709 Gujarat 36,097,163 58,388,625 618 Rajasthan 36,083,720 67,449,102 535 Madhya Pradesh 35,391,441 72,362,313 489 6 October 2012 Total 652,786,515 907,036,520 589.5
- 8. Value Added Servicesin India 8 Person-to-Person SMS 4% 10% Ringtone Download 17% 44% Person to Application & Application to Person SMS Games & Data 25% Others (MMS, etc. ) 6 October 2012 Source: TRAI
- 9. Contd… 9 As per COAI, SMS 44% Caller line identification 6% Other VAS 19% Ring tones 7% Content download 6% GPRS 5% VAS supplied by mobile network operators or VASP Many national and international investors ready to invest in this segment of telecom market. 6 October 2012
- 10. Future Trends 10 Location based services Mobile music will increase with better bandwidth Migration to 3G will increase ARPU Mobile commerce might be developed further Mobile email will be driven by enterprises Stocks on mobile will see an uptake Upcoming services like 3G and Portability will help to further increase the growth rate. 6 October 2012
- 11. Future trends 11 Convergence of technologies & the ability of private players to offer it to the market faster than the incumbent operator. “The telecom industry in 2012 will be very different from the one we know today. Developing strong partnership skills, focusing on customer user groups, embracing Internet services and starting to talk the language of Web 2.0 will enable the carriers to thrive well into the future," 6 October 2012
- 12. 12 ENVIRONMENT SCANNING •Political and Legal factor •Economical factor •Social factor •Technological factor •Cultural factor 6 October 2012
- 13. Political / legalfactor (1/2) 13 Governmental and legal issues affecting how the company operates 1. The communication Act (DOT, TRAI and other telecom authority of India) 2. Environmental protection legislation 3. Internet and connectivity Regulation 4. Concern over radiation over mobile phone 5. Spectrum laws 6. Corruption 7. Infrastructure 8. Banning of phone use in certain circumstances 9. Legislative Structures 6 October 2012 (FDI, FII, Mergers & Acquisition, Partnership)
- 14. Political / legalfactor (2/2) 14 10. Monopoly Restriction: 11. Industry regulation and change in regulation 12. Employment and wages legislation and change in that 13. Resourcing and Outsourcing 14. Trade Union power 15. Taxation policies and change in policies 16. R&D restrictions 17. Health issues 6 October 2012
- 15. Economical factor 15 Factors affecting the purchasing power of the customers and the company’s cost of capital 1. Average GDP growth (7.9% from 2002 to 2009-10) 2. Per capita income is increases (PPP) 3. Falling handset price 4. Falling tariff 5. Spectrum prices 6. Unemployment level 7. Business cycle (Crisis and Stagflation) 8. Price or cost and Availability of products and row material or services 9. Energy cost or License cost 6 October 2012
- 16. Social Factor 16 Demographic and cultural aspects of environment which influence customer need and market size 1. Attitude (Internet @ home) 2. Life style 3. Changes in market trends and customer preferences 4. Urbanization 6 October 2012
- 17. DEMOGRAPHIC FACTOR 17 Age Income Level Occupation Literate Rate (65%) 6 October 2012
- 18. Technological Factor 18 1. R & D Expenditure and New equipments for R & D 2. Infrastructure Expenses 3. Skilled Employees 4. 3G or 4G Instruments 5. Universal Mobile Télécommunications System (UMTS) 6. GPRS , SMS and MMS technologies 6 October 2012
- 19. 19 COMPETITIVE ANALYSIS BHARTI AIRTEL RELIANCE VODAFONE IDEA BSNL MTNL UNINOR TATA AIRCEL 6 October 2012
- 20. Competitors in Market 20 6 October 2012
- 21. Market Share OfWireless Service Operators In India 21 (DEC 2009) 1% 1% Bharti 5% Reliance 11% 23% Vodafone BSNL 9% Tata Idea Aircel 13% 19% MTNL Others 18% 6 October 2012 Source: TRAI
- 22. Market Share OfNetwork 22 Provider GSM MARKET SHARE 1% 1% 8% Bharti 7% 31% Vodafone BSNL Idea 14% Aircel Reliance MTNL BPL 15% 23% 6 October 2012 Source: TRAI
- 23. Competitive analysis 23 Name Subscription base BHARTI AIRTEL 139,220,882 Reliance 113,315,831 Vodafone 111,465,260 Idea 70,748.936 BSNL 73,781,448 AIRCEL 43,296,659 Uninor 5,582,683 Sistema 6,873,798 MTNL 5,255,444 TATA 74,850,220 6 October 2012
- 24. 24 CONSUMER ANALYSIS RURAL URBAN INCOME LEVEL 6 October 2012
- 25. Demographic characteristic 25 Total Tele-density stood at 39.86 per cent Wire line Tele-density came in at mere 3.22 % whereas wireless subscription contributed 91.9 % of overall Tele-density Subscription in Urban Areas was at 328.55 Million and Rural subscribers increased to 136.27 Million According to the Vision 2020 document of the Planning Commission of India, the country will witness continued urbanization. The urban population is expected to rise from 28 per cent to 40 per cent of total population by 2020 Future growth is likely to be concentrated in and around 60 to 70 large cities having a population of one million or more 6 October 2012
- 26. Market Share –Rural & 26 Urban Rural Urban 73% 71.60% 70.70% 74.80% 74.40% 27% 28.40% 29.30% 25.20% 25.60% Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 6 October 2012 Source: TRAI
- 27. 27 Strength 1) Technically educated and intelligent work force, if given proper benefits and services can be retained in India. 2) Utility and necessity of telecom services increasing day by day. High rate of Growth in industry. 3) More and more value added services, along with the main services are provided. 4) Revenue sharing, strategies are leading to Mergers and acquisition, helping companies to enter new business opportunity and generate employment boosting country's economy. 5) Telecom software, telecom professionals, telecom infrastructures and telecom services are the key player in shaping today's economy. 6 October 2012
- 28. Weakness 28 Bureaucracy and politics effect the business policy Slow reform process effect the changes and make the progress slow. High initial investment Intangibility of services high so difficult to pursue the consumer 6 October 2012
- 29. Opportunity 29 Telecom education institutes are coming up to keep the professionals at par with the changing technology Cost effectiveness and govt. support could also be exploited as an opportunity New opportunities are generating more employment and creating a knowledge based economy Building of services has lot of potential in today's market. Increase ability of bandwidth has open door to new schemes, making efficient uses, providing value added services and generating more profits. An expanding Indian economy with increase focus on the service sector. 6 October 2012
- 30. Threats 30 Regulatory changes are constant threat Cheaper landline services High and tough competition in market 6 October 2012
- 31. 31 Porter’s 5 forces 6 October 2012
- 32. 32 TELECOMMUNICATION INDUSTRY 6 October 2012
- 33. THREAT OF NEWENTRANTS THREAT OF SUBSTITUTES • Ownership of a telecom license • Already existing Video calling and Internet facilities • Finance POWER OF SUPPLIERS POWER OF BUYERS • Less power • Increased choice – high bargaining power • Talented managers & engineers • Switching costs – individual & large business customers. RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY • Usage of phone, competition is high • Price • Value added services • Profitability low 6 October 2012 33
- 34. GAP 34 The largely untapped rural market will drive the next phase of telecom growth in the country, supported an by enabling environment and focused initiative by company. Army/ airforce and BSF as well as senior citizen are untapped till the day. 6 October 2012
- 35. 35 BCG MATRIX 6 October 2012
- 36. 36 6 October 2012
- 37. 37 BHARTI AIRTEL STAR High Growth, high Market share Reliance Cash Cows High market share, low Growth Vodafone STAR High Growth, high Market share Idea Question Mark High Growth, Low market share BSNL Question Mark High Growth, Low market share TATA Question Mark High Growth, Low market share Virgin Dogs Low Growth, Low market Share Uninor Dogs Low Growth, Low market Share 6 October 2012
- 38. ANALYSIS FROM BCGMATRIX 38 • Untapped Broadband services • 41% (Approx) market is untapped Question Mark ? 6 October 2012
- 39. 39 STRENGTHS WEAKNESSES • Targeting Rural population as well as Senior • They did not have their own towers. citizen and BSF/Army Jawans. • New market so they may fail to identify consumer • Strong network across the nation taste and preferences. • Large Capital availability • Less or no profitability at initial stage • Strong Infrastructure OPPORTUNITIES THREATS • To tie up with dell, Lenovo and Micromax • Presence of strong competitors like Vodafone, • Tie up with other companies to set independent Airtel and Docomo . tower company like “Indus Tower” • Expanding business in rural area and national • Vodafone and Airtel’s acceptance is increasing borders. • Reliance is biggest threat in CDMA. • Untapped Broadband services • New entry of foreign companies. • We are targeting senior citizens • Trade union • 41% (Approx) market is untapped • Listing on stock market 6 October 2012 • Marketing innovations
- 40. 40 STP ANALYSIS •Segmentation •Targeting •Positioning 6 October 2012
- 41. Segmentation 41 Segmentation : income Age Service usage Life of service Geographical condition Nature of customer Institutional Sole 6 October 2012
- 42. Targeting 42 Multi segment approach – a series of differentiated product to their respective market Targeting Rural India by giving them CDMA special Plan Home calling cards to national and International consumers Special senior citizen cards BBM and SMS services for young generations Facility of Group calling and SMS for targeting young people Special Air force and BSF cards Corporate net and mobile plans as well as wifi plans for corporates 6 October 2012
- 43. Positioning 43 Psychology Emotional aspects - Actor like “Amitabh Bachan” will be retained for Brand positioning. Product benefit - We are talking about exclusivity of network. Distribution Channel “Where Do You Want to Go Today ; Your Potential Our Passion” 6 October 2012
- 44. 44 Competitive Advantage 6 October 2012
- 45. Competitive Advantage (Target Audience) 45 Senior Citizen Plan Military and BSF Plan BBM Plan with 1 month free on annual subscription 6 October 2012
- 46. Porter’s generic strategy 46 1. Overall Cost leadership strategy 2. Differentiation strategy 3. Focus strategy 6 October 2012
- 47. 1. Overall costleadership strategy 47 The Overall Cost leadership strategy is aimed at gaining a competitive advantage through lower costs. The low cost leader in any market gains competitive advantage from being able to many to produce at the lowest cost. Factories are built and maintained; labor is recruited and trained to deliver the lowest possible costs of production. 'cost advantage' is the focus. Financial considerations and budgetary constraints play a critical role here in shaping competitive price of the products. Besides the production efficiency, brand and marketing skills plays a important role in this kind of competition. For example:--Some organizations, such as Toyota, are very good not only at producing high quality autos at a low price, but have the brand and marketing skills to use a premium pricing policy. 6 October 2012
- 48. 2.Differentiation strategy 48 A firm with a differentiation strategy attempts to achieve a competitive advantage by creating a product or service that is perceived as unique. Differentiated goods and services satisfy the needs of customers through a sustainable competitive advantage. This allows companies to desensitize prices and focus on value that generates a comparatively higher price and a better margin. The benefits of differentiation require producers to segment markets in order to target goods and services at specific segments, generating a higher than average price. For example, British Airways differentiates its service by providing focus on exceptional good quality of service rather than focusing on low price. 6 October 2012
- 49. Contd… 49 The differentiating organization will incur additional costs in creating their competitive advantage. These costs must be offset by the increase in revenue generated by sales. There is also the chance that any differentiation could be copied by competitors. Therefore there is always an incentive to innovated and continuously improve 6 October 2012
- 50. 3. Focus orniche strategy 50 The focus strategy is also known as a 'niche' strategy. Where an organization can afford neither a wide scope cost neither leadership nor a wide scope differentiation strategy, a niche strategy could be more suitable. Here an organization focuses effort and resources on a narrow, defined segment of a market. Competitive advantage is generated specifically for the niche. A niche strategy is often used by smaller firms. A company could use either a cost focus or a differentiation focus.- With a cost focus a firm aims at being the lowest cost producer in that niche or segment. With a differentiation focus a firm creates competitive advantage through differentiation within the niche or segment. There are potentially problems with the niche approach. Small, specialist niches could disappear in the long term. Cost focus is unachievable with an industry depending upon economies of scale e.g. telecommunications. 6 October 2012
- 51. 51 4 P’s Product Price Place Promotion 6 October 2012
- 52. Product 52 Prepaid Postpaid I-Phone 3G CDMA Handset World Calling Cards / National Calling cards Gulf Calling Cards BSF and ARMY cards Senior citizen plans 6 October 2012
- 53. Product 53 A product with many different features provides customers with opportunities to Chat, Play games, Send and receive pictures and Videos Change ring tones, Receive information about travel and sporting events, Obtain billing information And soon view video clips and send video messages. Also provides on-the-move information services. 6 October 2012
- 54. PRICING STRATEGY 54 6 October 2012
- 55. Price 55 Monthly price plans as well as pre pay options Actual plan for prepaid holders CDMA plan 1Rs./5 min - Local and 3 Rs./8min National Caller tune and SMS is free for 1st month Postpaid – Rs.500 talk time -12th month Discounts and Free talk time on weekends Free voicemail services for 1st two months Different GSM plans 6 October 2012
- 56. WEEKEND PRICING 56 Brand Loyalty Promoti onal schemes Discoun ts e.g. Wal mart 6 October 2012
- 57. Place Manufacturer 57 Depending on TRAI and DOT Launching – Rural area , Metro and mega City Distributor Associated Distributor Retailer Consumer 6 October 2012
- 58. Promotion 58 Advertisement Free sample Sponsorships – Events. Sales Promo, Internet Marketing, Mobile marketing Water tank drums and sheets Rural helpline with IFFCO to answer farmer’s various crop related queries. STRONG TV RADIO BRAND 6 October 2012
- 59. PRICING & BRANDINGSTRATEGY 59 BRAND STRATEGY Pricing Marketing Campaign Sales & Corporate Websites Literature Messaging Naming CRM Identity tools 6 October 2012
- 60. 60 USP of the Company/Product/Person which makes “Value Selling Proposition”. U & Me are also brands. B – Base R – Reputation A – Achievement N – Noticeable D – Dividends 6 October 2012
- 61. PRICING & CHANNEL 61 STRATEYGY 6 October 2012
- 62. Marketing strategy 62 Our strategic objective is - Innovate and deliver on customer’s total communications needs. We need to educate the consumer Does your mobile give you information about Crops? “Where Do You Want to Go Today ; Your Potential Our Passion” 6 October 2012
- 63. Commercial strategy 63 Branding -Stores -Mass media coverage Innovative distribution to reach the customer -Exclusive shops -Hub and spoke -Associate distributions Customer service -Shops and call centers -Vans -Help desks 6 October 2012
- 64. SETTING VALUE PRICE 64 USP/Differentiated product Delivery & Design Product Costs Product Price 6 October 2012
- 65. 65 Distribution Strategy 6 October 2012
- 66. SERVQUAL Model 66 6 October 2012
- 67. CHANNEL STRATEGIES 67 Manufacturer • Direct Channel • Indirect Channel DISTRIBUTOR • Hybrid Approach • Push & Pull Strategy ASSOCIATED DISTRIBUTORS Retailer Customer 6 October 2012
- 68. PUSH & PULLSTRATEGY 68 Manufac Manufacturer turer Distributor Consumer Distributor Associated Distributor Associated Retailer Distributor Retailer Consumer 6 October 2012
- 69. 69 I am waiting for the mobile which allows us to speak when we are flying high in the sky!!! We have seen the revolution till 5g technology now lets see if 6g technology comes and we can talk in air…….. 6 October 2012
Editor's Notes
- #2 Expect more. Pay less.Where Do You Want to Go Today ; Your Potential Our PassionYOU AND US
- #24 Marketing should include competitor analysis. Who are your competitors? What customer needs and preferences are you competing to meet? What are the similarities and differences between their products/services and yours? What are the strengths and weaknesses of each of their products and services? How do their prices compare to yours? How are they doing overall? How do you plan to compete? Offer better quality services? Lower prices? More support? Easier access to services? How are you uniquely suited to compete with them?
- #27 I think no need
- #40 In the current scenario, where global warming which is the increase in the pollutative environment damages skin and increases pores and ageing & societal perception is such that urge for looking beautiful and younger is the fashion. So investing on research to produce eco – friendly herbal products.
- #55 It’s best to create your brand strategy and identify your distribution channels before you develop your pricing strategy. By doing so, you’ll ensure that your pricing reflects your value proposition and reinforces your brand; you can also minimize pricing conflicts with your channel partners.For e.g. to launch a new product and to be successful in market – ideally company should go follow this step. But it generally happens in reverse order. 1. Pricing, distribution channel, brand strategy and then marketing campaigns are decided.
- #60 In today’s competitive era, its not like that pricing and brand strategy cannot go hand in hand. If see today’s competitive scenario-depending on what customer wants price and branding strategies are decided. These days its websites, sales literatures, sms, CRM brands are few strategies which companies are adopting – main reason people are becoming tech savvy and companies get the most advantage of being cost effective.
- #65 In today’s cut throat competition in every industry – company should manufacture differentiated product and then should think about the delivery, designs, creativity & innovations in products which will be followed by cost of the product, technology used in the company, and then product price will be decide.
- #67 Tangible: customer care centre, large workforce and efficient workforce.Reliability: Accurate billing, customer complaint redressalResponsiveness: promptness in handling customer complaintsAssurance: time bound customer complaint redressal, billing problems resolved within four weeks.Empathy: customized tariff plans for family, youngsters, entrepreneurs etc.
- #70 I am waiting for the mobile which allows us to speak when we are flying high in the sky!!!We have seen the revolution till 5g technology now lets see if 6g technology comes and we can talk in air……..