Sei sulla pagina 1di 45

Pillais Institute of Management Studies and Research

A PROJECT REPORT ON

Consumer Behaviour towards Idea post-paid card and data connection

Submitted By

RANJIT PAWAR

From Pillais institute of Management Studies and Research

Under the guidance of

Prof. Neelima Sinha (Project Guide) (Pillais institute of Management Studies and Research)

And Mr. Hiten Shah (Owner of Idea Cellular Franchise)

Pillais Institute of Management Studies and Research

ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report on Consumer Behaviour towards Idea post-paid card and data connection. It has been an enriching experience for me to undergo my summer training at Idea cellular , which would not have possible without the goodwill and support of the people around. As a student of Pillais Institute of Management studies and research I would like to express my sincere thanks to all those who helped me during my practical training programme. Words are insufficient to express my gratitude toward Mr. Hiten Shah [Owner of Idea franchise] As they know research work needs hard work, keen insight and long patience with scholarly vision based on content operation hence it becomes a humble duty to express my sincere gratitude to my project guide Prof.Neelima Sinha. At last but not least my grateful thanks is also extended to Dr. R. Chandran (Director PIMSR) and my thanks to all my faculty members for the proper guidance and assistance extended by them.

Pillais Institute of Management Studies and Research

Declaration

I, Ranjit Bhagwat Pawar, student of Pillais Institute of Management Studies & Research, New Panvel studying in MMS-2nd year hereby declare that I have successfully completed this Project Report entitled Consumer Behaviour towards Idea post-paid card and data connection in the academic year 2009-10.

The information provided in this project is true and original to the best of my knowledge.

DATE: PLACE: Mumbai

SIGNATURE OF THE STUDENT (Ranjit Bhagwat Pawar)

Pillais Institute of Management Studies and Research

CERTIFICATE OF APPROVAL

This is to certify that the summer internship project entitled Consumer Behaviour towards Idea post-paid card and data connection. Submitted by Mr. Pawar Ranjit Bhagwat, student of Pillais Institute of Management Studies and Research as a part of curriculum of Masters of Management Studies is approved.

Prof. Neelima Sinha (Project Guide)

Dr. Vijay Raghavan (Director-PIMSR)

Pillais Institute of Management Studies and Research

INDEX

Sr no.

Particulars

Page No. 6 7 8 9 10 11 12 13 18 28 29 34 37

Chapter 1
Executive summary Introduction Objective of the Study Need of the Project Scope of the Project Research Methodology Limitations of the Project

Chapter 2
Industry Overview Company Profile Organization Chart Benefits given by Company

Chapter 3
Theoretical Background Data Analysis & Interpretations

Chapter 4
Finding Suggestions / Recommendations
42 43

Bibliography

45

Pillais Institute of Management Studies and Research

Executive summary

In todays world, telecom industry is growing very quickly. Now a days many operators are working in telecom field. The intense competition makes the companies to take the necessary steps, to retain their old retailers and customers as well as attract new ones. In this project, we have done cold calling on nearly 2500 idea prepaid numbers. Our main intention is to find out consumer behaviour towards idea post-paid and data card connection. Throughout the project we found that majority of the prepaid customers are happy with their service. Some statistics of the project are as follows 72% customers are satisfied with prepaid service, while 21% customers are not satisfied with prepaid service. 73.84% customers dont want to convert from prepaid to post paid, while 16.96% customers want to convert from prepaid to post paid. Major factor responsible for switching into post paid plan is of high usage. Major factor responsible for not switching into post paid plan is low usage (44.84%)and low fares in prepaid plan(33.88%) This survey will help the company to know there market share. It will also help the company to know and design the various plans according to need of customer and it required for the company to become a market leader. We have got many practical experiences during this training period. This project gives us the brief idea about the different products and services of the company. It also gives the brief idea about perception of the consumers about both pre-paid and post-paid plan. The result of which can be used to formulate the necessary strategies required for the development of the companys plans so as to benefit both customers as well as the company.

Pillais Institute of Management Studies and Research

INTRODUCTION
This project is mainly deals with the finding of consumer behaviour towards Idea post paid and data card connection. Hence first we have to find out what is consumer behaviour is all about? Consumer behaviour is the study of when, why, how, and where people do or do not buy product. It blends elements from psychology, sociology, social anthropology and economics. It

attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Idea offers post paid plan to their customers according to their use as discussed further. The main intention of offering post paid plan is develop long term relationship with customers and to get fixed income which is not possible in prepaid. Idea also offers Data card for internet user. You can use it in your laptop or desktop by simple plug and play operation. It helps you to access any websites and provides you easy downloading and uploading of data.

Pillais Institute of Management Studies and Research

OBJECTIVES OF THE STUDY

The objectives of this project are as follows To get the Exposure to the corporate world To interact with customers and to understand their need. To find the potential customers for Post-paid scheme. To gain the knowledge of the telecom industry To find the perception of customers regarding post-paid card.

Pillais Institute of Management Studies and Research

NEED OF THE PROJECT


To provide knowledge to customer about various benefit of post-paid planMany customers dont having the knowledge about various post-paid plan. Also they have many misconceptions about post-paid card. This project helps them to acquire more information about post-paid plan. Also it helps to choose best plan for customer.

To increase the no. of postpaid customer by converting prepaid customer into post-paid customer: As in case of post-paid more revenue is generated for the company as compared to the pre-paid, the promotion of post-paid is very important. The promotion of the post-paid is also important to eradicate the misconception of potential customers about the companys post-paid plan.

To get the feedback from customers: Also this study will enable us to know the expectation of the customers from a good post-paid plan and then accordingly formulate the plan so as to benefit both company as theyll as customers.

To get the information about acceptance or non acceptance of postpaid plan by customer-This project help the company to find out the reason for acceptance or non acceptance of postpaid plan by customer. Also it help to customize the plan according to need of customer.

Pillais Institute of Management Studies and Research

Scope of the Project

This study will enable us to understand the consumer behavior towards post-paid card. This helps us in future to work in telecom industry.

The project will also help company for the future improvements on the basis of present scale: Data collected from the customers can be used to make necessary amendments in the existing post-paid plans.

This project will also helps to those customers who are willing to use Idea post-paid card in the future.

10

Pillais Institute of Management Studies and Research

RESEARCH METHODOLOGY
The research design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. The data was collected from database of the company.

Telephonic interview was used to collect primary data, on the other hand; secondary data was collected from the database of the company. Graphical tools including bar diagrams, pie chart used in the process of analysis and interpretations of the collected data.

POPULATION 2500 customers from the universe theyre selected randomly for the survey.

SAMPLING

Simple random sampling was the method adopted for the selection of sample from the above mentioned universe.

SOURCE OF DATA COLLECTION Both primary and secondary data theyre used for the data collection

PRIMARY DATA AND SECONDARY DATA Both primary and secondary data theyre used for the data collection. The primary data was collected through telephonic interview with the existing customers. Secondary database was collected from the database of the company. TOOLS USED FOR THE STUDY Various statistical tools have used for the study. Statistical tables, Charts and Diagrams are used for the presentation of the data.
11

Pillais Institute of Management Studies and Research

LIMITATION OF THE PROJECT

The study had been conducted only in a selected region. The project time is limited only for only 2 months. Lack of experience in telecom industry. Customers response was not good for post-paid card. The study was confined to the randomly selected customers, so the result may not be same with remaining customers.

12

Pillais Institute of Management Studies and Research

Industry Overview

Telecom sector: At 110.01 million connections ' Indian Telecom Industry' is the fifth largest and fastest growing in the world. The subscriber base has grown by 40% in 2005 and is expected to reach 250 million in 2007. Over the last 3 years, two out of every three new telephone connections were wireless. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to grow at 2.5 million new subscribers every month in 2007. The wireless subscriber base skyrocketed from 33.69 million in 2004 to 62.57 million in FY 2004 -2005. The wireless technologies currently in use ' Indian Telecom Industry ' are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecommunication circles and 4 metro cities, covering more than 2000 towns across the country. And the numbers are still growing for ' Indian Telecom Industry '. ' Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of India' (TRAI). It has earned good reputation for transparency and competence. Three types of players exists in ' Telecom Industry India ' community State owned companies- BSNL, MTNL. Private Indian owned companies Reliance, Tata. Foreign invested companies Vodafone, Aircel, Airtel. Wireless technologies in use are Global system for Mobile Communication(GSM) Code Division Multiple Access (CDMA).

Airtel is the market leader with 110 million subscriber base followed by Vodafone on the 2nd place and Idea on the 3rd place with over 67 million subscribers.

13

Pillais Institute of Management Studies and Research

Market Share
Bharti Airtel Vodafone IDEA BSNL AIRCEL 1% 0% 1% 1% 4% 8% 31% RELIANCE MTNL LOOP UNINOR STEL

15%

15% 24%

Indian telecom sector has undergone a major process of transformation through significant policy reforms. The reforms began in 1980s with telecom equipment manufacturing being opened for private sector and theyre later followed by National Telecom Policy (NTP) in 1994 and NTP'1999. Historically, the telecom network in India was owned and managed by the Government considering it to be a natural monopoly and strategic service, best under state's control. However, in 1990's, examples of telecom revolution in many other countries, which resulted in better quality of service and low tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. Policy reforms can be broadly classified in three distinct phases

14

Pillais Institute of Management Studies and Research

"The Decade of 1980's saw private sector being allotted in telecommunications equipment manufacturing. Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) theyre formed and a Telecom Commission was set up to give focus to telecommunications policy formation.

"In 1990s, telecommunications sector also benefited from the general opening up of the economy. NTP 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. Availability of telephones on demand (targeted by 1997) Universal service covering all villages and one PCO per 500 persons in urban areas at the earliest (targeted to be achieved by 1997) Telecom services at affordable and reasonable prices World standard quality of services

"NTP 1999 brought in the third generations of reforms in the Indian telecommunications sector.

The Indian Telecom Sector: 1. Telecommunication Services 1. Basic service- Fixed Service Provider (FSPs) Fixed line services consist of basic services, national or domestic long distance and international long distance services. The domestic market (i.e. excluding international revenues), has been growing more than 5 per cent annually during the past three years, and has a current market size of Rs 30,164 cores, with a base of 43 million lines. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in 18 circles, and collectively

15

Pillais Institute of Management Studies and Research account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. As a result, average-revenues-per-user (ARPU) of private operators are more than twice those of the state-owned service providers.

2. Cellular service - Cellular Services There are 25 private companies providing Cellular Services in 19 Telecom Circles and 4 Metro cities, covering 1500 towns across the country. Presently, there are five private service operators in each area, and an incumbent state operator. Almost 80% of the cellular subscriber base belongs to the pre-paid segment. Several GSM cellular service companies are climbing the EDGE bandwagon. Hutch has already started and Bharti has made test calls on the EDGE platform and the company is in talks with Siemens for EDGE-enabling some of its circles. The DoT has allotted cellular companies to buy rivals within the same operating circle provided their combined market share did not exceed 67 per cent. Previously, they theyre only allotted to buy companies outside their circle.

Growth Drivers Opening up of international and domestic long distance telephony services are growth drivers in the industry. Cellular operators now get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.

16

Pillais Institute of Management Studies and Research

2. Internet Service Provider (ISP) - Internet Service Provider Internet has become very easily accessible with cyber cafes /kiosks increasing their density, not only in the metro towns but also in semi-urban towns. There is no restriction on the number of internet companies and more than 185 companies are operational. Internet telephony has been allotted officially from 1 April 2002. The growing demand of corporate for applications such as Electronic Commerce, internet leased lines, ISDN, VPN etc is driving the growth of the internet services market. However, the industry continues to face a number of bottlenecks in terms of regulatory treatment of ISPs, high bandwidth prices, low PC penetration, high cost of telephone access etc.

3. Telecommunication Equipment - Telecommunication Equipment The domestic industry is worth Rs 303,000 million and has made little progress in comparison to the development of Telecom services in the country. The industry is faced with two major challenges: India is being steadily opened up to the global market, as trade restrictions are done away with, resulting in crashing of import duties across the board and easy movement of goods from overseas. It is forecasted that by 2005, imported telecom equipment will account for 75% of the expenditure on telecom equipment in India. Secondly, to cut down on operations costs, US, European and East Asian multinationals are outsourcing manufacturing to cheaper destinations in Taiwan and China. (Refer to Appendix 5 for more details on this segment)

17

Pillais Institute of Management Studies and Research

COMPANY PROFILE

Type-

Public BSE: 532822 NSE: 532822 Telecommunications 1995 Santacruz East, Mumbai, India [1] Kumar Mangalam Birla(Chairman) Sanjeev Aga(MD) Rajat Mukharjee(VP Corporate Affairs) Mobile Rs 12,447.08 crore (US$ 2.65 billion) (2010) [1] Rs. 1,475.87 crore (US$ 314.36 million) (2010) Rs. 953.94 crore (US$ 203.19 million) (2010) Aditya Birla Group (49.05%) Axiata Group Berhad (15%) Providence Equity (10.6%)

IndustryFoundedHeadquarters Key people-

ProductsRevenueOperating incomeNet incomeParent -

Website-

www.ideacellular.com

18

Pillais Institute of Management Studies and Research

History
The chronology of key events of the Company from incorporation is set out below: Calendar year Events 2009 Subscriber base as on December 31, 2009: 57,611,872 Idea becomes a pan-India operator Emerging Company of the Year - fastest growing mobile operator in the worlds fastest growing telecom market 2008 Subscriber base as on December 31, 2008: 40,016,153 Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu & Chennai, Theist Bengal, Orissa, Kolkata, Assam, North East and Jammu & Kashmir Acquired Spice Communications with the operating circles of Punjab and Karnataka Launched services in Mumbai metro in the largest single metro city launch, ever Launched services in Bihar 2007 Subscriber base as on December 31, 2007: 21,054,027 Won an award for the "CARE" service in the "Best Billing or Customer Care Solution" at the GSM Association Awards in Barcelona, Spain Initial Public Offering aggregating to Rs. 28,187 million and Listing of Equity Shares on the Bombay Stock Exchange and the National Stock Exchange Merger of seven subsidiaries with Idea Cellular Limited 2006 Subscriber base as on December 31, 2006: 12,442,450 Became part of the Aditya Birla Group subsequent to the TATA Group transferring its entire shareholding in the Company to the Aditya Birla Group Acquired Escorts Telecommunications Limited (subsequently renamed as Idea Telecommunications Limited) Restructuring of debt Launch of the New Circles Reached the 10 million subscriber mark Received Letter of Intent from the DoT for a new UAS License for the Mumbai Circle.
19

Pillais Institute of Management Studies and Research

Received Letter of Intent from the DoT for a new UAS License for the Bihar Circle through Aditya Birla Telecom Limited. ABNL, the parent of Aditya Birla Telecom Limited, pursuant to a letter dated November 22, 2006, agreed to transfer its entire shareholding in Aditya Birla Telecom Limited to the Company for the consideration of Rs. 100 million. 2005 Subscriber base as on December 31, 2005: 6,473,962 Reached the five million subscriber mark Turned Profit Positive Won an Award for the "Bill Flash" service at GSM Association Awards in Barcelona, Spain Sponsored the International Indian Film Academy Awards 2004 Completed debt restructuring for the then existing debt facilities and additional funding for the Delhi Circle. Acquired Escotel Mobile Communications Limited (subsequently renamed as Idea Mobile Communications Limited) Reached the four million subscriber mark First operator in India to commercially launch EDGE services 2005 2003 Reached the two million subscriber mark 2002 Changed name to Idea Cellular Limited and launched "Idea" brand name Commenced commercial operations in Delhi Circle Reached the one million subscriber mark 2001 Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chattisgarh) Circle Changed name to Birla Tata AT&T Limited Obtained license for providing GSM-based services in the Delhi Circle following the fourth operator GSM license bidding process

2000 Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra Pradesh Circle
20

Pillais Institute of Management Studies and Research

1999 Migrated to revenues share license fee regime under New Telecommunications Policy ("NTP") 1997 Commenced operations in the Gujarat and Maharashtra Circles

1996 Changed name to Birla AT&T Communications Limited following joint venture between Grasim Industries and AT&T Corporation 1995 Incorporated as Birla Communications Limited Obtained licenses for providing GSM-based services in the Gujarat and Maharashtra Circles following the original GSM license bidding process.

21

Pillais Institute of Management Studies and Research

Values: Integrity Honesty in every action At Aditya Birla Group, Integrity is defined as: Acting and taking decisions in a manner that is fair, honest, following the highest standards of professionalism and also perceived to be so. Commitment deliver on the promise At Aditya Birla Group Commitment is defined as: On the foundation of integrity, doing whatever it takes to deliver value to all stakeholders. In the process, taking ownership of our actions and decisions, those of our team and that part of the organization that they are responsible for. Passion energized action At Aditya Birla Group Passion is defined as: A missionary zeal arising out of emotional engagement with the organization that makes work joyful and inspires each one to give his or her best. Relentless pursuit of goals and objectives with the highest level of energy and enthusiasm, that is voluntary and spontaneous. Seamlessness boundryless in letter and spirit At Aditya Birla Group, Seamlessness is defined as:

Thinking and working together across functional silos, hierarchies, business and geographies. Leveraging the available diversity to garner synergy benefits and promote openness through sharing and collaborative efforts.

Speed one step ahead always At Aditya Birla Group, Speed is defined as: Responding to internal and external customers with a sense of urgency. Continuously seeking to crash timelines and choosing the right rhythm to optimize organization efficiencies.

22

Pillais Institute of Management Studies and Research

Brand Initiatives
Aim of Idea cellular is to create year round impact through media buying and planning,. With the objective of Strengthening our brand, they work with strategic communication partners on campaigns like sponsorship of the Idea International Indian Film Academy awards and the television programs Idea Rocks India, Idea Star Singer and Idea Andhra Idol. They seek engagement with subscribers on a variety of levels, from major celebrity fashion shows to small local events timed to coincide with new product offerings. Since August 2003, they have commissioned a Brand Track Index Study to evaluate the health of our brand. The Brand Track Index Study is a monthly study conducted by TNS, a marketing consultant engaged by us to evaluate our brand using face-to-face interviews on a random sample of mobile users a theyll as those Intending to purchase mobiles within the next three months. According to the study our brand is perceived as reliable/trustworthy and one that offers cheaper and good promotional offers. They have improved our rating in the Brand Track Index calculated by the study in the past year reflecting, they believe, the growing strength of our brand. The main communication medium for the Idea brand is television, where they seek strategic Idea brand coverage in various formats. Billboards and hoardings are used as a secondary medium, customized for specific regional preferences to communicate effectively at the local level. They also use other mass communication media such as the press and radio to communicate price plans and other tactical and customer information. All our key initiatives are subjected to a rigorous testing and launch process to ensure accountability for all advertising spend and improve the chances of success of a new product. This process is followed up with extensive briefing of call centre agents and sales personnel and real-time tracking of the impact of the communication and feedback from subscribers.

23

Pillais Institute of Management Studies and Research

SHAREHOLDING PATTERN:

As seen from the above pie chart the promoters hold nearly 49% of the total shares. So the majority stake is held by the promoters of the company. The overseas corporate bodies amount to nearly 30.17%, which make them the second largest shareholder in the company. The FIIs, Banks and FI also hold the significant in the company.

PROMOTERS:
IDEA Cellular is part of the Aditya Birla Group, India's first truly multinational corporation. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stake holders. The group operates in 25 countries, and is anchored by over 100,000 employees belonging to 25 nationalities. The Group has been adjudged 'The Best Employer in India and among the Top 20 in Asia' by the HewittEconomic Times and Wall Street Journal Study 2007.

24

Pillais Institute of Management Studies and Research

A premium conglomerate, the Aditya Birla Group is a leader in swathe of products - viscose staple fibre, aluminium, cement, copper, carbon black, insulators, garments.

The Group has also made successful forays into financial services, telecom, software, BPO and retail sectors. Today, the Group is India's most diversified business house.

25

Pillais Institute of Management Studies and Research

Subscriber base Idea's subscriber base as at the end of May 2010 Maharashtra and Goa - 9,754,424

Madhya Pradesh and Chhattisgarh - 7,800,385 Andhra Pradesh - 6,497,952 Kerala - 5,588,865 Kolkata - 604,650 Gujarat - 5,527,480 Uttar Pradesh (Theyst) & Uttarakhand - 6,019,347 Delhi - 2,751,588 Haryana - 2,236,132 Uttar Pradesh (East) - 3,985,584 Rajasthan - 2,404,693 Himachal Pradesh - 267,763 Mumbai - 1,562,675 Bihar & Jharkhand - 3,237,896 Tamil Nadu & Chennai - 800,053 Orissa - 604,876 Punjab (Spice) - 3,406,761 Karnataka (Spice) - 2,802,370 Rest of Bengal - 664,427 Assam - 96,542 Jammu & Kashmir - 71,874 North East except Assam - 40,465

Totalling to 66,726,802 or 15.02%(Approx.) of the total 444,295,711[3] mobile connections in India.


26

Pillais Institute of Management Studies and Research

70 60 50 Subscriber in million 40 30 20 10 0

67

47

24 14 2.7 5.1 7.4

Year 2004 2005 2006 2007 2008 2009 2010


subscir

Customer Service The company has its retail outlets under the "My Idea" banner. The company has also been the first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban areas. Idea Cellular won the GSM Association Award for "Best Billing and Customer Care Solution" for 2 consecutive years. IDEA Cellular has been recognized as the 'Most Customer Responsive Company' in the Telecom sector, at the prestigious Avaya Global Connect Customer Responsiveness Awards 2010.

27

Pillais Institute of Management Studies and Research

Organization Chart

Chairman Kumar M. Birla

CEO Sanjeev Aga

CFO Akshay Mundra

CMO Pradeeep Srivastava

CTO Anil Tandon

ZMO 1

ZMO2

ZMO3

SM

SM

SM

Channel Partner

28

Pillais Institute of Management Studies and Research

Benefits Given By Company: Post-paid plan in India:


Idea offers various post-paid plan according to use of customer like Special Plan for conversion from pre to Post: Plan Value plus 199 Monthly Rental 199 Benefits 400 local+., 200 Local sms Free. Double value 299 299 600 local+., 200 Local sms Free. Super duper300 300 400 local+100 STD min., 200 Local sms Free Roaming 400 400 500 local+100 STD min., 200 Local sms Free

Our customer centric tariffs allow you all the room in the world to choose the perfect plan, one which optimizes your usage and keeps your pocket heavy too. So, when you talk, you don't forget to smile. Idea Cellular Ltd. does not deal in handsets. Idea services are purely restricted to the business of SIM cards and cellular services.

Special Plan given to us for conversion from pre to Post: Plan Win 175 Monthly Rental 175+service tax Benefits 400 local+200STD min., 200 Local sms Free. Local call-40ps/min STD call-50ps/min SMS-50ps/SMS No. will remain same as prepaid no.

29

Pillais Institute of Management Studies and Research

Idea Post-paid Registration & Activation Process As per the directive from the Department of Telecom (DOT), following Documents need to be submitted with the Customer Application Form For Address Proof And Identity Proof 1. Passport 2. Arms License 3. Driving License 4. Photo Identity Card having address 5. Election Commission ID Card 6. CGHS / ECHS Card 7. Certificate of address with Photo from Govt. recognized educational institutions (for students only) 8. Certificate of address having photo issued by Village panchayat head (for rural areas) 9. Post Office address card - Photo duly attested 10. Bank Pass Book (any scheduled Bank) duly attested on Photograph (with transactions details not older than 3 months) 11. Post Office Pass Book duly attested on Photograph (with transactions details not older than 3 months) 12. Caste & Domicile Certificate with photo issued by State Govt. 13. Pensioner Card having Photo & address 14. Freedom Fighter card having Photo & address 15. Kisan Passbook having Photo & address

30

Pillais Institute of Management Studies and Research

For Identity Proof 1. Income Tax PAN 2. Photo Credit Card 3. CSD Card / Paramilitary Card 4. Photo Identity Card issued by Govt. recognized educational institutions (for students only)

For Address proof only 1. Ration card 2. Water Bill (not older than last 3 months) 3. Telephone Bill for Fixed line (not older than last 3 months) 4. Electricity Bill of State company (not older than last 3 months) 5. Income Tax Assessment Order 6. Vehicle Registration Certificate 7. Registered Sale / Lease Agreement (On Rs.100/- Stamp Paper & Registered at SubRegistrar's Office only) 8. Bank Pass Book (any scheduled Bank) - (with transactions details not older than 3 months) 9. Post Office Pass Book (with transactions details not older than 3 months) 10. Credit Card Statement (not older than last 3 months) 11. Latest bank statement (not older than 3 months) of any scheduled bank duly signed &sealed by Branch Manager along with customer's photo graph

31

Pillais Institute of Management Studies and Research

Value Added Services Mumbai: SMS Text Messaging Idea Buzz - Subscription Services 554560456 Missed Call information USSD Cricket Alerts Ringtones, Picture Messages & Logos SMS Short Codes SMS Packs GPRS Ideafresh Idea GPRS - Rate Plans & Charges Dialer Tones Dialer Tones M-Search on Dialer Tones! Copy a Dialer Tone! Dialer Tone Subscription Through USSD *456# Voice Say !dea-55456 Background Music- 55246 Rail Enquiry -Dial 139 Voice Mail Service Night Radio Service!!!! Voice SMS Select Call Treatment Service Idea Music Station !dea Voice Portal 54040 Ganesha Speaks-55181 Astrology Service-55315 Voice Pack - 55456030 IDEA Voice Portal - 53030

32

Pillais Institute of Management Studies and Research

Roaming: National International Roaming

Roam Like Home - with IDEA: Now you have one more reason to select Idea network while roaming in India. You can enjoy a Roam Like Home experience even while roaming. IDEA is the first telecom operator in India to offer this facility to its valued roamers.

Mumbai-Call Management Services:


Post-paid CLIP Call Hold / Call Wait Call Conference Itemised Bill SMS Prepaid CLIP Call Hold / Call Wait SMS Call Divert

33

Pillais Institute of Management Studies and Research

Theoretical Background

GSM: GSM (Global System for Mobile Communications): is the most popular standard for mobile telephony systems in the world. The GSM Association, its promoting industry trade organization of mobile phone carriers and manufacturers, estimates that 80% of the global mobile market uses the standard. GSM is used by over 4.3 billion people across more than 212 countries and territories. Its ubiquity enables international roaming arrangements between mobile phone operators, providing subscribers the use of their phones in many parts of the world. GSM differs from its predecessor technologies in that both signalling and speech channels are digital, and thus GSM is considered a second generation (2G) mobile phone system. This also facilitates the wide-spread implementation of data communication applications into the system. The ubiquity of implementation of the GSM standard has been an advantage to both consumers, who may benefit from the ability to roam and switch carriers without replacing phones, and also to network operators, who can choose equipment from many GSM equipment vendors. GSM also pioneered low-cost implementation of the short message service (SMS), also called text messaging, which has since been supported on other mobile phone standards as theyll. The standard includes a worldwide emergency telephone number feature.

CDMA: Code division multiple access (CDMA) is a channel access method utilized by various radio communication technologies. It should not be confused with the mobile phone standards called CDMA One and CDMA2000 (which are often referred to as simply CDMA), which use CDMA as an underlying channel access method. One of the basic concepts in data communication is the idea of allowing several transmitters to send information simultaneously over a single communication channel. This allows several users to share a bandwidth of different frequencies. This concept is called multiplexing.
34

Pillais Institute of Management Studies and Research CDMA employs spread-spectrum technology and a special coding scheme (where each transmitter is assigned a code) to allow multiple users to be multiplexed over the same physical channel. By contrast, time division multiple access (TDMA) divides access by time, while frequency-division multiple access (FDMA) divides it by frequency. CDMA is a form of spread-spectrum signalling, since the modulated coded signal has a much higher data bandwidth than the data being communicated.

Mergers and Acquisitions: The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity. An acquisition, also known as a takeover or a buyout, is the buying of one company (the target) by another. Merger is when two companies combine together to form a new company altogether. An acquisition may be private or public, depending on whether the acquire or merging company is or isn't listed in public markets. An acquisition may be friendly or hostile. Whether a purchase is perceived as a friendly or hostile depends on how it is communicated to and received by the target company's board of directors, employees and shareholders. It is quite normal though for M&A deal communications to take place in a so called 'confidentiality bubble' whereby information flows are restricted due to confidentiality agreements (Harwood, 2005). In the case of a friendly transaction, the companies cooperate in negotiations; in the case of a hostile deal, the takeover target is unwilling to be bought or the target's board has no prior knowledge of the offer. Hostile acquisitions can, and often do, turn friendly at the end, as the acquire or secures the endorsement of the transaction from the board of the acquire company. This usually requires an improvement in the terms of the offer. Acquisition usually refers to a purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will acquire management control of a larger or longer established company and keep its name for the
35

Pillais Institute of Management Studies and Research combined entity. This is known as a reverse takeover. Another type of acquisition is reverse merger a deal that enables a private company to get publicly listed in a short time period. A reverse merger occurs when a private company that has strong prospects and is eager to raise financing buys a publicly listed shell company, usually one with no business and limited assets. Achieving acquisition success has proven to be very difficult, while various studies have shown that 50% of acquisitions theyre unsuccessful. The acquisition process is very complex, with many dimensions influencing its outcome. Spectrum: is a condition that is not limited to a specific set of values but can vary infinitely within a continuum. The word saw its first scientific use within the field of optics to describe the rainbow of colours in visible light when separated using a prism; it has since been applied by analogy to many fields other than optics

36

Pillais Institute of Management Studies and Research

Data Analysis and Interpretation: Whether satisfied with the prepaid service

Sales
cant say, 155 6%

not satisfied, 533 21%

Satisfied Not satisfied Satisfied, 1812 72% Can't say

Majority (72%) of the customers are satisfied with the prepaid plans while 21% of the customers feel they are not satisfied because of attractive plans by the competitors. While 6% of the customers feel that Idea serves for their purpose but are a bit confused.

37

Pillais Institute of Management Studies and Research

Response of customers about changing the plan from pre to Post-paid-

Chart Title
Want to change 499 19.96% Doesn't want to change 155, 6% Others

1846 73.84%

Majority(73.84%) of the people do not want to change mostly because of low usage and unable to afford the post-paid plan. 19.94% of people want to change from pre to post due to the very attractive plan and also because of its affordability. Others include 6% of the customers who are not sure about there future uses and wish to hold it for a while.

38

Pillais Institute of Management Studies and Research

Factors for switching to post-paid:

Sales
High usage Affordability Plan attractiveness Lucrative number Other

124

577 1215

273 311

As it is clear from the above pie chart that majority of the customers switching to the post paid are due to the high usage which leads them to recharge again and again in the case of prepaid connection, which may also lead to the temporary disconnection or loss of time on part of the customer. Because of these reasons the customers having high uses preferred post-paid over the pre-paid. 10.92% of the customers switched from prepaid to the post-paid because of attractiveness of the plan. As this plan is a special plan and meant only for the pre-paid customers and also having a very low monthly rental of just Rs. 175 when compared with the regular plan of Rs. 300. And also this plan gives the more benefit at low rental when compared with the competitors plan. 13.44% of the people fill that due to its low rental this plan is very affordable. Also lucrative numbers are getting post-paid which also gives heavy impact on switching from prepaid to post-paid. It accounts 23.08% of total sample.

39

Pillais Institute of Management Studies and Research Factors for not switching to post-paid

Series 1
Low usage Low fares in prepaid 66 2.64% Better service by other company Other

466 18.64% 847 33.88%

1121 44.84%

Out of the total database provided, 33.88% of the customers do not want to switch to postpaid because of low usage. And in the case of Win 175 also their monthly bill will exceed their current recharges and thus will be paying more for the same uses. 44.84% of the customers feel that prepaid is better than the post-paid because you cannot make calls more than the balance in your account, and also some felt that they are charged more in the case of the post-paid than the pre-paid. Nearly 18.64% of the people think that service provided by other operators is better than us.

40

Pillais Institute of Management Studies and Research

As seen from the above graph it is clear that subscriber base of the prepaid customers has been going up with the time. As per the company data nearly 94.3% of the total users theyre prepaid customers. Thus company has a very good scope for increasing its market share and thus generating more revenue for the company using the post-paid plans.

41

Pillais Institute of Management Studies and Research

FINDINGS OF THE PROJECT

From the above data analysis following findings can be drawn As low call rate in prepaid card, majority of the companys customers are satisfied with the existing prepaid service. Another reason for using prepaid service, there is low roaming charges in pre-paid than post-paid. Transparency of call charges and also they get the report and cost of the calls instantly on their dialing screen in prepaid service, it force the customer to use prepaid service. Approximate 34% of the customers do not want to change their plan due to low usage. Other reason for not changing their plan includes poor coverage and perception of customer regarding post-paid plans. Many customer want to use postpaid service, but because of not availability of document necessary it, they cant use it. Majority of the customers who want to switch to post-paid are high users. More than 90% of the companys customers are prepaid customers.

42

Pillais Institute of Management Studies and Research

Suggestions / Recommendations:

The main objective of every analysis is to find the faults and road blocks of a business. Some of the suggestions based on the 4 ps of marketing are: Product: Idea came in Mumbai in 2007.So Idea need to develop Brand visibility by more and more advertising in front of its competitor Vodafone.. Idea cellular is somewhat poor in coverage than its competitor Vodafone..Because of that there are certain issues of customer dissatisfaction in certain areas. Company should be careful about these problems. Postpaid plan should be made according to need of customer. For example, many customer need plan for STD use. But having no such any plan for STD users. It will be better to have feedback from the customers at regular interval to minimize communication gap.

Price: The company should offer more discounts plan for customer according to competitors plan. So that it will help the company to develop more attractiveness of customer towards postpaid plan. As many customer belong to out of Maharashtra, postpaid plan should develop in such way that STD rate will be minimum. Also sum customers are not ready to the deposit and activation fees taken by company, so it should minimized to some extent.

43

Pillais Institute of Management Studies and Research

Promotion: Company should give more emphasis on promotion of postpaid plan along with prepaid plan, as there are many misconceptions about postpaid service in the mind of customer. Company should create Brand visibility in mind of customer by keeping more transparency and availability of postpaid service among the consumers. There should be good promotion schemes that support the post-paid plan like some discount offer, some gift along with postpaid card, some group calling scheme etc. Company should change the perception of the customers about postpaid that in postpaid they get unnecessary bills. This can be done by sending them free itemized bills. There should be some relaxation in the documentation process as the current process is lengthy and proofs needed are many. Company should come up with plans which suit the low users. Company should come up with plans for the customer which mainly requires STD calls.

44

Pillais Institute of Management Studies and Research

Bibliography

www.ideacellular.com www.google.com www.scribd.com www.currentanalysis.com www.wikipedia.org Economic Times

45

Potrebbero piacerti anche