India is the booming market for telecom sector. It is ranked second in telecom network provider all around the world. This industry has witnessed significant growth in subscriber base over the last decade, with better network coverage and competition induced decline in tariffs. This attracted various foreign companies to invest in this sector.

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VISVESVARAYA TECHNOLOGICAL UNIVERSITY
BELGUM – 590010
MBA Programme
Bapuji Institute of Engineering & Technology
Lake View Campus
S.S. Layout
Davangere-577004
Subject:
MARKETING MANAGEMENT
“INDIAN TELECOM SECTOR”
Second Semester
Subject Code:12MBA24
SUBMITED TO:
PROF. SATISH RAIKAR
SUBMITTED BY:
(Sec “A”)
ASHOK KALAKOND
ASHWINI UMACHAGI
BHUVANESH SHETTY
SOUNDARYA MM
RABIN BHANDARI

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Content:
Topic Page Number
Overview 3
Environmental Scanning 3
SWOT analysis 4
Trend and Megatrend 4
Questionnaire 5
Analysis 7
Product gap 12
New product design: TeleIN 12
STP 13
Product differentiation 15
Packaging: TeleIN 16
Pricing 17
Distribution 19
Promotion 20

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Telecom industry in India
1. Overview
India is the booming market for telecom sector. It is ranked second in telecom
network provider all around the world. This industry has witnessed significant growth
in subscriber base over the last decade, with better network coverage and competition
induced decline in tariffs. This attracted various foreign companies to invest in this
sector.
2. Environmental scanning
2. a. External environment
Demographic forces: Variation in age group( teen, youth, old )
Economic forces: Economic growth, purchasing power of existing customers and potential
customers, per capita income
Environment factors: Radiation hazards, health issue( radiation and excessive use of phones ),
e-waste
Technological forces : Availability of different range of handsets( inexpensive to smartphones),
online recharge, CDMA and GSM, mobile banking, R & D
Political forces : Government regulations and legal issues, tax policy, employment laws,
political stability, licensing policies,
Cultural forces: High revenue during festivals( via Phone call, MMS, SMS etc),
behavior, tastes and lifestyle patterns of population, go local strategies
2. b. Internal environment
Different mobile companies: Government, private & foreign companies with tough competition
Suppliers: Major suppliers from foreign country eg. Huawei, ZTE from china ,
hardware’s etc , and also internally
Intermediaries: More dependent on intermediaries on sales and marketing
eg. Retailor, wholesalers etc
Customers: End user customer, government customer and corporate customer
Competitors: Tough competition between different companies in terms of price,
advertising, Value added service and better service
Publics: Government, Media, Financial, General, Internal, citizen actions

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Public
3. SWOT analysis of Indian Telecom sector
Strength
1. High growth rate
2. Low call rate and data usage rate
3. Unlimited value added service like free
SMS, cricket update, news update,
daily horoscope etc.
4. High return of investment ( ROI )
5. Brand value
Weakness
1. Poor infrastructure, network coverage,
low broadcast frequencies
2. Late adopters of new technology
3. Poor customer service
4. Difficult to enter because of huge
financial requirements (eg. 3G
licensing)
Opportunity
1. Increasing market potential with high
revenue
2. Decrease in the cost of broadcast signals
due to technological advances
3. Skilled and competitive labor force
4. Low cost labor
Threats
1. Threat of entry of new competitors,
FDI
2. Strict government rules and regulations
( eg. License renewal )
3. Declining average revenue per user
(ARPU)
4. Telecommunication policies by TRAI
5. Internet phone call
4 Trend in telecom industry:
a. Mobile Number portability
b. Aggressive advertising and low cost SIM card
c. Data card, 3G
5 Megatrend in telecom industry:
a. Horizontal integrity ( eg. Airtel TV, Airtel broadband, Bharti Airtel )
b. 3G & 4G licensing, mobile banking
c. Research and development, free roaming services, infrastructure sharing

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6. Questionnaire to the customers :
Questionnaire for the valuable customer of telecommunication industry
Name:
Gender: Male ( ) Female ( )
Age: Below 20 ( ) 21-40 years ( ) 41-60 years ( )
60+years ( )
Occupation: Businessman ( ) Government Employee ( ) Farmer ( )
Student ( ) Others ( )..............
Location: …………………………………….
Marital status: Single ( ) Married ( ) Others ( ) …………………
Monthly Income: less than 10000 per month ( ) 10000-20000 per month ( )
20000-30000 per month ( ) 30000-40000 per month ( )
More than 40000 per month ( )
Service Provider: Airtel ( ) Vodafone ( ) Idea ( )
Docomo ( ) BSNL( ) Reliance ( )
Others ( ) (if yes, specify the service provider)…………
Service type:
Prepaid ( ) Postpaid ( )
How long have you been using this SIM ?
Less than 6 months ( ) 6 months to less than 1 year ( )
1 year to less than 3 years ( )
3 years to less than 5 years ( ) More than 5 years ( )
You have ………. SIM card?
One ( ) Two ( ) Three ( ) More than three ( )
Reason for selection of particular service provider:
Low cost ( ) Better network ( ) Better Value Added Services ( )
Friend/ Family circle ( ) Advertisement Influenced ( ) Retailer Influenced ( )
Others ( ) ……………………………………..
Use mobile for : Only Phone calls ( )
Both for phone calls and internet usage ( )

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Satisfaction from the services: ( 5 for high and 1 for low )
1. Very dissatisfied 2. Dissatisfied 3. Neither satisfied nor dissatisfied
4. Dissatisfied 5. Very Dissatisfied
Call rate: 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5( )
Network: 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5( )
Internet: 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5( )
Internet cost: 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5( )
VAS : 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5( )
(VAS= Value added services eg. SMS, MMS, cricket update etc.)
How much do you spend on recharge monthly?
Less than Rs. 200 ( ) Rs. 200-500 ( ) Rs. 500-1000 ( ) More than 1000 ( )
Have you ever done online recharge?
Yes ( ) No ( )
Do you know about your mobile service provider?
Very well ( ) Little ( ) Not at all interested ( )
Have you ever visited your service provider official website?
Yes frequently ( ) Yes but occasionally ( ) Yes only once ( ) No ( )
If you are 2G internet user, do you want to shift to 3G service?
I am happy with 2G internet service ( ) I am ready to shift to 3G internet service ( )
I am ready to shift only after cost of 3G is reduced ( ) Others( )………………………
If you are the internet user , how much do you spend in internet per month ?
Less than 100 ( ) Rs. 100-200 ( ) More than 200 ( )
Are you satisfied with the customer support provided by your mobile operator?
Very satisfied ( ) Somewhat satisfied ( ) Neutral ( )
Somewhat dissatisfied ( ) Very dissatisfied ( )
How many times did you contact customer support before your problem was resolved?
Once ( ) Twice ( ) Three times ( )
More than three times ( ) Problem is still unresolved ( )
Approximately how much do you spend to wish your friends and family in festivals/special
occasions?
Rs. 0 ( ) Rs. 25 ( ) Rs. 50 ( ) Rs. 100 ( ) Rs. 200 ( ) more than 50 ( )
What do you prefer the most, top up recharge or easy recharge?
Easy recharge ( ) Top up recharge ( )
Are you loyal to your current brand of mobile service provider?
Continue with the same company ( )
Discourage using cell phone altogether ( )
Continue with the same company even if you are dissatisfied ( )
Switch to the other company ( )

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7. Analysis:
Survey was done in Davangere, Karnataka. 100 samples were taken and were given
questionnaire. Findings from the questionnaire are as follows.
Facts:
a. Most of the samples were from the age between 18-30.
b. Most of them were students.
Findings:
a. Most of them are using Vodafone SIM card followed by Airtel and Idea.
b. Customer gives preference to better call rate, better internet service,
reasonable internet cost, and better network coverage.
Even in entire country, Vodafone is the leader mobile service provider
amongst students. Same statistics is reflected from the sample collected in
Davangere.

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c. Age group Vs. Monthly recharge
Customers who are above 20 and below 30 years spend in between Rs.
100 to Rs. 200 in internet recharge, whereas customers below 20 years
spend less than Rs. 100 in internet recharge.
d. Festival recharge and occupation:
Most of the customers spend on an average Rs. 50 during festival time to
call and send SMS.

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e. Student customers are not less loyal to the mobile service provider, they shift
from one service provider to another frequently and possess more than one
SIM cards.
f. Monthly recharge and occupation
Student’s average monthly recharge is in less than Rs.500(Rs. 250 per
month ). Businessmen average monthly recharge is in between Rs. 200 to
Rs. 500.
g. 2G to 3G shift:
Most of the customers are happy with current 2G service. Some of them are ready
to shift to 3G only after cost of 3G is reduced.

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h. Mobile application usage
Age Vs Mobile application usage
i. Facebook is widely used application among all age group.

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ii. Customers of age group between 21 to 30 years prefer using WhatsApp,
Youtube, Banking applications and news applications besides facebook
application.
I Satisfaction from customer service:
Most of the people, who have called once to customer care and problem is solved, are
highly satisfied by customer care service whereas the customers who have called
more than three times to the customer care hare dissatisfied from the customer care
service.
i. Outlet visit by the customer
Most of the customers have never visited service provider outlet in the city.
Whenever they get SIM card related issue, they directly call to customer care instead
of going to the outlet.
0
20
40
60
80
Yes, several times Yes, occationally Never
Outlet visit

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j. Website visit by the customers
Most of the customers have not visited their mobile service provider official
website even once.
8.Product gap:
• Satisfaction from internet service and internet cost: Most of the customers are not
satisfied from the internet facilities.
• 2G and 3G services gap: Customers complaint about the large gap existing in between
the cost of 2G internet service and 3G internet service.
• Festival offer : There is no any festival offer in any mobile service in the market.
• Internet package ( limited) : Internet package is not widely customized
• Customer care services( poor )
• Web presence( ineffective) : Customers are not attracted towards towards the web
presence of mobile companies.
• Outlets in the city: There are more outlet in the city but less customers prefer to go to
the outlet.
9. New product:
We have come up with the new telecom industry name TeleIN, (meaning Telecommunication
India. Two types of SIM are introduced namely, Student SIM and Business SIM. Various features
are added in both of the SIM cards. The others features are as follows:
• Better network
• Festival offers
• Online recharge offer( Full talk time on every recharge )
• Better customer care experience ( Missed call to customer care, Mobile Helpline )
• Customized ( High & Low end ) mobile + SIM card offer with collective features
• Older the SIM, more the benefit offer
Company Name: TeleIN
Tagline: Be different, feel the difference
Website Visit
Yes, frequently
Yes, but occassionally
Yes, only once
No

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10. Segmentation, Targeting and positioning
(STP)
a. Segmentation:
Following segmentation areas are identified from the sample
survey.
Demographic factor:
Age group ( 18-30 years )
Occupation: Students, Businessman
Income
Family
Geographical factor:
Metro City
Tier I city
Tier II city
Tier III city
Behavioral factor:
Occasion, festivals
Usage (internet, VAS)
Benefits
Loyalty towards the product
b. Targeting:
Target Age group
(years)
Offer
Students 18- 30 Internet, SMS, Call rate,
balance transfer
Businessmen 21-40 Postpaid service, VAS,
Better Network,
Internet
Income
group : Less
than 10000
Less than
20000
------------ Call rate
Network connectivity,
Internet service
 Product/Market specialization, full market coverage in small cities and metro respectively
 Internet user Vs. non-internet user
 Rural telephony

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c. Positioning Strategies:
• Better network coverage:
Claim of full network coverage in entire Karnataka
(also in Internet connectivity )
• Customer Service ( Customer intimation ) :
1. Mobile customer care concept: Customer care service will not be located in a
fixed location. They will be mobilized throughout the city.
2. Miscall- call back customer care approach: Customers can give a miscall for
Service provider and according to the priority, customer care representative
will revert back to the customer.
3. Less number of outlet but better customer service experience:
Since customers are less attracted towards the customer care outlet, it is
better to give quality of service from less number of outlet rather than
opening number of outlets in the city.
• Advertising:
1. Website advertising: Let the customer be aware about the service provider
official website. Print media, Television advertising should focus on website
promotion.
2. Online recharge: Customers are encouraged to do online recharge, by
providing special offers such as full talk time in online recharge for first 2
months
3. Go local: Local advertising strategies. Local issues, festivals are taken into
priority and act accordingly.
• Student exclusive SIM: Internet + Call rate + Internet (Social Network)
• Businessmen exclusive: VAS( news, stock info, current trend in the business,
opportunities), Internet( apps )
• Low income ( budget) group : Phone + SIM at reasonable price, both high end and low
end mobile phone

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Differentiation:
Service differentiation
• In terms of Product and service
- Customer Service: Prompt and distinctive customer service.
- Network: Better network coverage
• Rural telephony:
Service targeted to the rural unoccupied areas.
• Student brand ambassador concept:
One student from each college can be selected as a brand ambassador for the
service provider and various activities can be conducted in a campus.
• Festival recharge voucher :
Special tariff for festival day/ special occasion
• Application packages :
Customized internet application packages
• Mobile helpline facilities:
Mobile service will be provided in a crowed city so that the customer can
get the solution of their queries from their own place by the group of experts.
• Sponsorship
• CSR

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11. Packaging : TeleIN
MRP:20(inclusive of all taxes)
To activate the
connection, complete and
submit the prepaid CAF along
with photograph, proof of
identity and proof of address
TeleIN GSM prepaid SIM.
Expiry date:5 months from date of
packaging
Manufactured and packaged
by:
TeleIN communications Ltd.

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12. Pricing:
a. TeleIN new SIM card price
STUDENT PLAN BUSINESS PLAN
Rs. 30 Rs. 50
Talk time Rs. 10 each alternative months for another 3 months
and 10000 sec TeleIN to TeleIN local free call for each
alternative months.
( Rs.10 + 10,000 sec + Rs. 10 + 10,000 sec +Rs. 10 + 10,000 sec )
Offer validity: 6 months
Talk time Rs. 35
Offer validity: 3 months
Call rate: First minute charge: 60 paisa
After that 30 paisa/min( Local + National )
Call rate: First minute charge:
60 paisa
After that 30 paisa/min
( Local + National)
b. TeleIN SMS offer

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c. TeleIN recharge offer:
d. TeleIN other features:

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13. Distribution:
Both direct distribution and indirect distribution strategies is adopted.
Direct distribution:
Direct distribution is done through official website www.telein.in
Number of outlets will be opened throughout the country in major areas.
Online recharge and online document submission and verification process is
encourages.
Marketing pull strategies is adopted for direct distribution.
Indirect distribution:
4.5% is given to the distributors whereas 3% is for the retailers. i.e finally distributors
will get 1.5% income from each sales.

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14. Promotion:
Bollywood actor Ranbir Kapoor is selected as the brand ambassador of TeleIN.
Advertisement of TeleIN is as follows.
This advertisement was uploaded in Facebook on 16th
June 2013 at 10 AM and as of 17th
June 2013, 10 AM, this advertisement got total 204 likes and 111 shares. ( 315 likes and
shares in total )
(link:
https://www.facebook.com/photo.php?fbid=10201224150355564&set=a.1213028295592
.84617.1525322579&type=1&theater )
(Note: for further details, please contact: robin.rabid01@gmail.com )
Thank you