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Introduction: Executive summary of the project

Chapter 1

Executive Summary
Telecommunication Industry which is basically my concern industry around which my project has to be revolved is really a very complex industry. Challenges which I faced while doing this project were followingTelecommunication sector was quite similar in offering end products and because of that it was very difficult to discriminate between our product and products of the competitors. Basically in this project I analyzed thatWhat factors made difference in Lower End Recharge Coupon provided by Tata Docomo to other Mobile Operator in Raipur. Target Retailers were too busy persons that to get their time and view for specific questions was very difficult. Area covered for the project while doing job also was very large and it was very difficult to correlate two different respondents views in a one.

Project Done By Rakesh Gupta

The Indian Telecom Industry

The telecom network in India is the fifth largest network in the world meeting up with global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to Indias GDP. The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and presents unique opportunities for several business giants in the stagnant global scenario. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY 2004-2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. The wireless technologies currently in use 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 telecom circles and 4 metro cities, covering 2000 towns across the country. For the past decade or so, telecommunication activities have gained momentum in India. Efforts have been made from both governmental and non-governmental platforms to enhance the infrastructure. The idea is to help modern telecommunication technology penetrate Indias socio-culturally diverse society, and to transform it into a nation of technology aware people.

Project Done By Rakesh Gupta

History
Telecom in the real sense means transfer of information between two distant points in space. The popular meaning of telecom always involves electrical signals and nowadays people exclude postal or any other raw telecommunication methods from its meaning. Therefore, the history of Indian telecom can be started with the introduction of telegraph. Introduction of the Telephone In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-Indian Telephone Company Ltd. approached the Government of India to establish telephone exchanges in India. The permission was refused on the grounds that the establishment of telephones was a Government monopoly and that the Government itself would undertake the work. By 1881, the Government changed its earlier decision and a license was granted to the Oriental Telephone Company Limited of England for opening telephone exchanges at Kolkata, Mumbai, Chennai (Madras) and Ahmadabad. January 28, 1882, is a Red Letter Day in the history of telephone in India. On this day Major E. Baring, Member of the Governor General of India's Council declared open the Telephone Exchange in Kolkata, Chennai and Mumbai. The exchange at Kolkata named "Central Exchange" was opened at third floor of the building at 7, Council House Street. The Central Telephone Exchange had 93 number of subscribers. Bombay also witnessed the opening of Telephone Exchange in 1882.

Further developments.
1902 - First wireless telegraph station established between Saugor Islands and Sandheads. 1907 - First Central Battery of telephones introduced in Kanpur. 1913-1914 - First Automatic Exchange installed in Simla.

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July 23, 1927 - Radio-telegraph system between the UK and India, with beam stations at Khadki and King of England. 1933 - Radiotelephone system inaugurated between the UK and India. 1953 - 12 channel carrier system introduced. 1960 - First subscriber trunk dialing route commissioned between Kanpur and Lucknow. 1975 - First PCM system commissioned between Mumbai City and Andheri telephone exchanges. 1976 - First digital microwave junction introduced. 1979 - First optical fibre system for local junction commissioned at Pune. 1980 - First satellite earth station for domestic communications established at Secunderabad, A.P.. 1983 - First analog [[Stored Program Control exchange for trunk lines commissioned at Mumbai. 1984 - C-DOT established for indigenous development and production of digital exchanges. 1985 - First mobile telephone service started on non-commercial basis in Delhi. While all the major cities and towns in the country were linked with telephones during the British period, the total number of telephones in 1948 was only around 80,000. Even after independence, growth was extremely slow. The telephone was a status symbol rather than being an instrument of utility. The number of telephones grew leisurely to 980,000 in 1971, 2.15 million in 1981 and 5.07 million in 1991, the year economic reforms were initiated in the country. While certain innovative steps were taken from time to time, as for example introduction of the telex service in Mumbai in 1953 and commissioning of the first [subscriber trunk dialing] route between Delhi and Kanpur in 1960, the first waves of change were set going by Sam Pitroda in the eighties. in 1994. He brought in a whiff of fresh air. The real transformation in scenario came with the announcement of the National Telecom Policy Dond, inaugurated by Lord Irwin by exchanging greetings with the

Modern Growth
Large population, low telephony penetration levels, and rise in consumer income and spend owing to strong economic growth have contributed to making India the fastest4
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growing telecom market in the world. The first and largest operator is the state-owned incumbent BSNL, which is also the 7th largest telecom company in world in terms of number of subscribers. BSNL was created by corporatization of the erstwhile DTS (Department of Telecommunication Services), a government unit responsible for provision of telephony services. Subsequently, after the telecommunication policy was revised to allow private operators, companies such as Reliance, Bharti Telecom, Tata Indicom, Vodafone, MTNL, and BPL have entered the space. major operators in India. However, rural India still lacks strong infrastructure. The total number of telephones in the country crossed the 281.62 million mark at the end of January 2008. The overall tele-density has increased to 24.63% in January 2008. In the wireless segment, 8.77 million subscribers have been added in January 2008 while 8.11 million subscribers were added in December 2007. The total wireless subscribers (GSM, CDMA & WLL (F)) base is 242.4 million now. The wireline segment subscriber base stood at 39.22 million with a decline of 0.03 million in January 2008.

India, Emerging As A Major Player


In 1975, the Department of Telecom (DoT) was separated from P&T. DoT was responsible for telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. In 1990s the telecom sector was opened up by the Government for private investment as a part of Liberalisation-Privatization-Globalization policy. Therefore, it became necessary to separate the Government's policy wing from its operations wing. The Government of India corporatised the operations wing of DoT on October 01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL). Many private operators, such as Reliance India Mobile, Tata Telecom, Vodafone, BPL, Bharti, Idea etc., successfully entered the high potential Indian telecom market.

Growth Of Mobile Technology


India has become one of the fastest-growing mobile markets in the world. The mobile services were commercially launched in August 1995 in India. In the initial 5-6 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 millions. However, after the
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number of proactive initiatives taken by regulator and licensor, the monthly mobile subscriber additions increased to around 2 million per month in the year 2003-04 and 2004-05. Although mobile telephones followed the New Telecom Policy 1994, growth was tardy in the early years because of the high price of hand sets as well as the high tariff structure of mobile telephones. The New Telecom Policy in 1999, the industry heralded several pro consumer initiatives. Mobile subscriber additions started picking up. The number of mobile phones added throughout the country in 2003 was 16 million, followed by 22 million in 2004, 32 million in 2005 and 65 million in 2006. The only country with more mobile phones than India with 246 million mobile phones is China 408 million. India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in the mobile sector. In addition to landline and mobile phones, some of the companies also provide the WLL service. The mobile tariffs in India have also become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$5 only. In 2005 alone 32 million handsets were sold in India. The data reveals the real potential for growth of the Indian mobile market. The Indian telecommunications has been zooming up the growth curve at a feverish pace, emerging as one of the key sectors responsible for India's resurgent economic growth. India is set to surpass US to become the second largest wireless network in the world with a subscriber base of over 300 million by April, according to the the Telecom Regulatory Authority of India (Trai). The month of April 2008 will see India wireless subscriber base that currently stands at 250.93 million surpassing that of the US to become the second wireless network in the world. The year 2007 saw India achieving significant distinctions: having the world's lowest call rates (2-3 US cents), the fastest growth in the number of subscribers (15.31 million in 4 months), the fastest sale of million mobile phones (in a week), the world's cheapest mobile handset (US$ 17.2) and the world's most affordable colour phone (US$ 27.42) and largest sale of mobile handsets (in the third quarter. Wireless segment has emerged as the preferred mode of telephone service by the consumers, reflected in the rising share of mobile phone connections to total connections. The share of mobile phones has increased from 71.69 per cent at the end of
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March 2006 to 87.68 per cent at the end of May 2008. While total mobile subscriber base was 277.92 million, wire line subscriber base was 39.05 million.

Consequently, overall tele-density has increased to 27.59 per cent at the end of May 2008. India is likely to be second largest mobile market in the BRIC nations, with 560 million mobile users representing the next great growth curve for both mobile and interactive marketing industries, according to a report by eMarketers. Also, private sector has become the dominant player in the industry. While public sector companies added 53.6 million subscribers during 1998-2007, private companies have added a whopping 133.58 million subscribers during the same period. The dominance has been much more pronounced in the mobile market, where private operators have added 124.68 million subscribers, while public sector operators added only 31.79 million subscribers.

Investment
The booming domestic telecom market has been attracting accelerating amount of investment. During April 2000 to March 2008, cumulative FDI inflows into the Indian telecommunications sector amounted to US$ 3.84 billion, accounting for 6.81 per cent of the total FDI inflows into the country. In fact, the surge in mobile services market is likely to see investment worth about US$ 24 billion by 2010, going by industry estimates. This is understandable, when seen that the number of mobile subscribers is estimated to increase to 600 million by 2012, according to Standard Chartered Bank, implying a mobile in the hands of every second person in the country. Buoyed by the rapid surge in the subscriber base, huge investments are being made into this industry. Maxis Communications-owned mobile service provider Aircel is planning to invest close to US$ 5 billion over the next four years in India for network enhancement and expansion.

Project Done By Rakesh Gupta

Srei Group's Quippo Telecom Infrastructure Ltd (QTIL) plans to invest US$ 3 billion in 2008-09 to ramp up its telecom infrastructure business to grow both organically and inorganically The Central public sector enterprises (CPSEs) have lined up investments of US$ 35.09 billion in infrastructure sectors like telecom energy and power for 2008-09. Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its mobile subscriber base from 40 million at present to over 100 million.

Value Added Services Market


India's runaway success in mobile telephony has also given a boost to the mobile value added services(MVAS)market. According to a study by Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 926.3 million in 2007 and is likely to grow at a CAGR of 44 per cent to US$ 2.74 billion by 2010. Echoing similar sentiments, research firm Gartner estimates data services to account for 22 per cent of the total revenues by 2010 from 12 per cent in 2007. Significantly, India's share in Asia-Pacific (excluding Japan) data revenue is estimated to almost double from about 6 per cent in 2007 to 11.5 percent by 2011.

Project Done By Rakesh Gupta

Major Players of the Industry:


There are three types of players in telecom services: -State owned companies (BSNL and MTNL) -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,) -Foreign invested companies (Vodafone, Bharti Tele-Ventures, Escorted, Idea Cellular, BPL Mobile, Spice Communications)

BSNL
On October 1, 2000 the Department of Telecom Operations, Government of India became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL).

BHARTI
Established in 1985, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti TeleVentures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services.

MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services and to raise revenue for telecom development needs of Indias key metros Delhi and Mumbai.

Project Done By Rakesh Gupta

RELIANCE INFOCOMM
Reliance India Mobile, the first of Infocomm's initiatives was launched on December 28, 2002. This marked the beginning of Reliance's vision of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India.

VSNL
On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government owned corporation - was born as successor to OCS. The company operates a network of earth stations, switches, submarine cable systems, and value added service nodes to provide a range of basic and value added services .

VODAFONE
Hutchs presence in India dates back to late 1992, when they worked with local partners to establish a company licensed to provide mobile telecommunications services in Mumbai. Commercial operations began in November 1995.later it has been overtaken by Vodafone.

IDEA
IDEA Cellular Ltd. has a new ownership structure and grand designs to become a

national player, but in doing so is likely to become a thorn in the side of Reliance Communications Ltd. IDEA operates in 11 telecom circles, or regions, in Western India, and has received additional GSM licenses to expand its network into three circles in other part of India -- the first phase of a major expansion plan that it intends to fund through an IPO, according to parent company Aditya Birla Group .

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Tata Teleservices Ltd


Tata Teleservices Limited spearheads the Tata Group's presence in the telecom sector. The Tata Group includes over 90 companies, over 395,000 employees worldwide and more than 3.5 million shareholders. Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x technology platform in India. It has embarked on a growth path since the acquisition of Hughes Tele.com (India) Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. It launched mobile operations in January 2005 under the brand name Tata Indicom and today enjoys a pan-India presence through existing operations in all of India's 22 telecom Circles. The company is also the market leader in the fixed wireless telephony market. The company's network has been rated as the 'Least Congested' in India for six consecutive quarters by the Telecom Regulatory Authority of India through independent surveys. Tata Teleservices Limited has also become the first Indian private telecom operator to launch 3G services in India under the brand name Tata DOCOMO, with its recent launch in all the nine telecom Circles where it bagged the 3G license. In association with its partner NTT DOCOMO, the Company finds itself favorably positioned to leverage this first-mover advantage. With 3G, Tata DOCOMO stands to redefine the very face of telecoms in India. Tokyo-based NTT DOCOMO is one of the world's leading mobile operatorsin Japan, the company is the clear market leader, used by nearly 55 per cent of the country's mobile phone users. Tata Teleservices Limited also has a significant 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 servicesand has

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also been allotted spectrum in 18 telecom Circles. The company has rolled out GSM services in all of these 18 telecom Circles in the quick span of just over a year. 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 persecond tariff optionpart of its 'Pay for What You Use' pricing paradigm. Tokyo-based NTT DOCOMO is one of the world's leading mobile operatorsin the Japanese market, the company is the clear market leader, used by over 50 per cent of the country's mobile phone users. The Tata Teleservices Limited bouquet comprises four other brands as wellVirgin Mobile, Walky (which is the brand for fixed wireless phones), the Photon family (the company's brand that provides a variety of options for wireless mobile broadband access, and T24. TTSL recently entered into a strategic partnership agreement with Indian retail giant Future Group to offer mobile telephony services under a new brand nameT24on the GSM platform. The exciting new brand was unveiled in February and the company announced the commercial launch of GSM operations under the brand name T24 in June, starting with the city of Hyderabad. It has now launched T24 GSM services in Kolkata, Bhubaneswar, Lucknow and Ahmedabad. Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd, serves over 85 million customers in more than 450,000 towns and villages across the country, with a bouquet of telephony services encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wireline Services. In December 2008, Tata Teleservices announced a unique reverse equity swap strategic agreement between its telecom tower subsidiary, Wireless TT Info-Services Limited, and Quippo Telecom Infrastructure Limitedwith the combined entity kicking off operations with 18,000 towers, thereby becoming the largest independent entity in this spaceand with the highest tenancy ratios in the industry. Today, the combined entitywhich has been re-christened as VIOM Networkshas a portfolio of nearly 45,000 towers. TTSL's bouquet of telephony services includes mobile services, wireless desktop phones, public booth telephony, wireline services and enterprise solutions..

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TATA DOCOMO
Tata DOCOMO is Tata Teleservices Limited's 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 license to operate GSM telecom services in 19 of India's 22 telecom Circlesand has also been allotted spectrum in 18 telecom Circles. Of these, it has already rolled out services in all the 18 Circles that it received spectrum in from the Government of IndiaTamil Nadu, Kerala, Orissa, Karnataka, Andhra Pradesh, Maharashtra, Mumbai, Madhya PradeshChhattisgarh, Haryana-Punjab, Kolkata, Rest of West Bengal, Jharkhand, Bihar, UP (East), UP (West), Gujarat, Himachal Pradesh and Rajasthan. Tata DOCOMO has also become the first Indian private operator to launch 3G services in India, with its recent launch in all the nine telecom Circles where it bagged the 3G license. In association with its partner NTT DOCOMO, the Company finds itself suitably positioned to leverage this first-mover advantage. With 3G, Tata DOCOMO stands to redefine the very face of telecoms in India. Tokyo-based NTT DOCOMO is one of the world's leading mobile operatorsin Japan, the company is the clear market leader, used by nearly 55 per cent of the country's mobile phone users. 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 technology, as also products and services like i-Mode, e-wallet and a plethora of lifestyle-enhancing applications. Last year itself, while most of the rest of the industry was only beginning to

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talk of 4G technology and its possible applications, DOCOMO had already concluded conducting 4G trials in physical geographies, not just inside laboratories! DOCOMO is a global leader in the VAS 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 through the Tata DOCOMO brand. Tata DOCOMO has also set up a 'Business and Technology Coordination Council', comprising of senior personnel from both companies. The council is responsible for the identification of key areas where the two companies will work together. DOCOMO, the world's leading mobile operator, will work closely with the Tata Teleservices Limited management and provide know-how to help the company develop its GSM business. On the CDMA platform, despite being the latest entrant, Tata Indicom has already established its presence and is the fastest-growing pan-India operator. Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x technology platform in India. Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd, serves over 84 million customers in more than 450,000 towns and villages across the country, with a bouquet of telephony services encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wireline Services.

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Purpose of the Business


At the Tata group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate. Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business.

Core values
Tata has always been values-driven. These values continue to direct the growth and business of Tata companies. The five core Tata values underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny. Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide. Unity: We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over

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COMPETITORS
Telecom Industry in India is dominated by major players like Bharti-Airtel, BSNL, Reliance, Vodafone, and IDEA with share market strength as per Exhibit 3, 4 and 5 given below. Competition is very intense due to low points of differentiation. Exhibit 1: Competition portfolio

Exhibit 2: Wireless subscriber Indian market share India Wireless Connections (September 2009) Market Sep-09
Bharti Airtel RCOM Vodafone BSVL Idea Cellular TATA Teleservices Aircel MTNL Loop Telecom Sistema Shyam HFCL 110511416 86117663 82846046 58756598 51454402 46796033 25728633 4680141 2495087 1960532 379654

Aug-09
107996533 84112632 80874460 57304404 50058471 42789210 24415514 4662833 2417446 1732125 380288

Additions
2514883 2005031 1971586 1452194 1395931 4006823 1313119 17308 77641 228407 -634

Share
23.43% 18.26% 17.56% 12.46% 10.91% 9.92% 5.45% 0.99% 0.53% 0.42% 0.08%

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All Operators

471726205

456743916

14982289

100.00%

SWOT Analysis:
Strengths
Early Mover - Pioneer in India on one second billing concept. Innovative pricing models for almost everything be it voice calls, VAS services, and IVR Low Price Low Quality trap (due to excessive focus on only price based selling) interactions. Global leader in value added services. USP : Value Added Services like - Timed SMS - Diet SMS - Comix-on-the-go - Interactive GPRS application, - TATA i-Channel Strong Alliance: Trusted TATA brand combined with proven technological edge of NTT DOCOMO. Plans affordable by common people Active in social media sites like Customer Service

Weakness
Signal Strength

Twitter,

Facebook, StumbleUpon, Technorati etc, one of their strategies for marketing their products and creating an online presence Opportunities Scope to expand the coverage growing Indian market : VAS services market to grow to 450 billion No strong POD other than price Late entrant in Indian market TRAIs plan to introduce Mobile Number portability in early 2010 rupees by 2010 Introduce new plans targeted to internet users Introduce 3G compliant services since DOCOMO has the expertise in 3G Introduce new combined plans like SMS, Internet, calling integrated offers Association with Microsoft to launch the new generation Windows Mobile 6.5 smart phones TRAIs plan to introduce Mobile Number Threats Cut-throat competition from other major service providers

across

the

portability in early 2010 17


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VAS for rural segment like integration with echoupal, mandi prices, weather information, fish shoal movement etc.

Marketing Mix
PRODUCT
TATA DOCOMO having good range of services: TATA DOCOMO provides both postpaid and prepaid services. 18
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TATA DOCOMO Quality network: TATA DOCOMO intends to have good quality network which provides clarity in voice.

Post paid Plan feature

Plan
Activation charges Minimum no. of Connection Maximum no. of Connection CUG

My Family Plan ( 999)


300 2 3 1p/6sec 1p/sec for Day Calling* &

My Family Plan ( 1999)


300 2 5 1p/6sec 1p/sec for Day Calling* & 1p/2sec Night Calling* Local call 1p/sec for On-Net & Off-Net STD calls Local SMS @ 50p/sms National SMS @ Rs.1/sms ISD SMS @ Rs.5/sms 100 hrs Voice (Local + STD) 25 hrs Voice (CUG) 1 GB Data (2G/3G) 1000 SMS (Local + National)

My Family Plan (2 999)


300 2 5 1p/6sec 1p/sec for Day Calling* & 1p/2sec Night Calling* Local call 1p/sec for On-Net & Off-Net STD calls Local SMS @ 50p/sms National SMS @ Rs.1/sms ISD SMS @ Rs.5/sms 167 hrs Voice (Local + STD) 33 hrs Voice (CUG) 2 GB Data (2G/3G) 1500 SMS (Local + National)

Local

1p/2sec Night Calling* Local call

STD

1p/sec for On-Net & OffNet STD calls Local SMS @ 50p/sms National SMS @ Rs.1/sms ISD SMS @ Rs.5/sms 50 hrs Voice (Local + STD) 17 hrs Voice (CUG) 500 MB Data (2G/3G) 500 SMS (Local + National)

SMS

Available Benefits for Family

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Roaming Plan
Plan
Activation charges Monthly Rental Local

Roam Free ( 299)

Roam Free ( 299)

Roam Free ( 299)


300 799 1p/2sec for On-Net & Off-Net local calls 1p/sec for On-Net & Off-Net STD calls Local SMS @ 60p/sms National SMS @ Rs.1.20/sms ISD SMS @ Rs.5/sms Incoming Charges : Roam Free when on Tata DOCOMO Network. Standard charges** apply when on any other networks Roaming. Outgoing Charges : Standard charges** apply.

300 299 1p/sec for On-Net & OffNet local calls 1p/sec for On-Net & OffNet STD calls Local SMS @ 60p/sms National SMS @ Rs.1.20/sms ISD SMS @ Rs.5/sms Incoming Charges : Roam Free when on Tata DOCOMO Network. Standard charges** apply when on any other networks Roaming. Outgoing Charges : Standard charges** apply.

300 499 1p/2sec for On-Net calls & 2p/2sec for OffNet local calls 1p/sec for On-Net & Off-Net STD calls Local SMS @ 60p/sms National SMS @ Rs.1.20/sms ISD SMS @ Rs.5/sms Incoming Charges : Roam Free when on Tata DOCOMO Network. Standard charges** apply when on any other networks Roaming. Outgoing Charges : Standard charges** apply.

STD

SMS

Roaming

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FAT (Free Airtime)

Any 4 toppings

FAT (Free Airtime)

Any 7 toppings

Available Topping Combination 200 mins (Local) 150 mins (STD) 500 SMS (Local) 100 MB (2G Data) Available Topping Combination

200 mins (Local) 150 mins (STD) 500 SMS (Local) 100 MB (2G Data)

Prepaid Plan Features


o o o o o o o 1p/ second - Anywhere In India Savings Alert After every Outgoing call ISD calls on 1 second charging Best SMS rates from TATA DOCOMO Pre activated STD, ISD and National Roaming without rental Anywhere in India Recharge with TATA DOCOMO Total Information control

Recharge Coupon
Recharge Coupon Vouchers are divided into two Categories: 1. Lower End Recharge Coupon Voucher: 5 Rs to 50 Rs 2. Upper End Recharge Coupon Voucher: Above 50 Rs

Lower End Recharge Coupon Voucher: 1. Talk Time Coupon Voucher:

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MRP (Rs.) 10 20 30 50

Talk Value(Rs.) 6.07 15.13 24.20 41.33

Additional Benefit (Seconds * ) 300 300 300 600

Seconds Validity (Days) 3 3 3 7

Processing Fee (Rs.) 3 3 3 4

2. GPRS Pack:
MRP(Rs.) 48 15 11 5 Free Usage Details 1 GB 500 MB 150MB with Rs.500 free content 50 MB Offer Validity (Days) 21 3 2 Till midnight on day of recharge Post Free GPRS Usage Charges 10p/10KB 10p/10KB 10p/10KB 10p/10KB

3. SMS Pack :
MRP(Rs) 9 19 SMS Benefit 100 Local/National SMS 250 Local/National SMS Daily 500 Local/National SMS Free & then chargeable as per base tariff Offer Validity (Days) 30 30 Processing Fee (Rs.) 8.16 17.23

49

30

44.42

For the rural population, voice alone cannot be incentive enough to subscribe for a telephone connection even with the availability of low cost handsets and all the recent tariff initiatives. The mobile handset has to become a multipurpose instrument providing entertainment, news, education, connectivity as well as a means to promote the financial and business interests. Value added services viz. education, entertainment, tele-medicine, banking, IPTV etc. Some of these services can be provided through text messaging. However, in order to make up for the slow pace of development in the past and offer range of usage/ application, it is necessary that

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both voice and broadband go and in hand as far as strategy for rural India are concerned. Locally relevant applications in local languages Alerts to farmers on Mandi prices Vital, real-time information is available to fishing communities (e.g. sea wave heights, satellite scan data about fish shoals) which is processed to make it usable to non-technical users.

Integrated package consisting of text-messaging services, voice services and an Internet portal for rural areas. Farmers and fishermen can access the service to get weather forecasts, price information, and employment opportunities outside the agricultural industry.

Temperature, humidity, wind speed & direction and rainfall information Tie up with initiatives like ITC e-choupal to provide real time information via mobiles

Mobile Banking for Rural India: Paying insurance premium and utility bills Sending and receive money (through agents/post offices etc)

Applications for the health and education areas Provide standard classroom content as part of broadband package Provide specialized e-classroom trainings Provide trainings for agriculture and livestock related areas pay per use Provide technical (non agricultural sector) related trainings and certifications for increasing employment opportunities pay per use Applications for Department of Posts Applications to send the letters, greetings, messages etc electronically, only generating hard copies at point of destination for distribution. This will save a lot on logistics costs for department of posts. At the same time they can retain revenues.

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PLACE

Applications for sending money orders through e-Money

It 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

Use TATAs existing electronic retail chains like Croma for sales, distribution, returns and customer service in urban areas. Tie-up with Department of Post The Postal department has the required infrastructure and reach and also the expertise to handle monetary transactions along with postal deliveries (money orders, stamps, savings schemes, other miscellaneous services) The Dept of Posts has a presence in every corner of the country. The Postman is a known and recognized entity in even the smallest villages. He knows the people well in every village and is well respected. He is also seen as a reliable and responsible Person since he works with the government. He can also influence the decisions of the village folks due to his unique position elaborated above. Postman can be used for credit verification, address verification, training and support and can be given incentives for the same by the telecom companies. TATA with its well respected brand and political clout can form this alliance.

Use Local Schools/Colleges etc for training in rural areas The local schools will offer the presence of literate teachers who can be leveraged for training the rural people in the use of mobile services and handsets. The teachers can also serve as the voice through which the benefits can be communicated to the villagers.

Dive-in stores in small cities.

PROMOTION Advertising: TATA DOCOMO following different style of advertising pattern in TVs

and newspapers. Sales promotion: due to unique feature of TATA DOCOMO it helps the sales people to decrease burden.

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Project Done By Rakesh Gupta

Run promotions for mobile services and products during harvest season and festivals due to the presence of higher disposable income during that period. Run promotions through the local post office, gram panchayats, banks and schools, buses. Allow one month free service for the value added services as trial offers. Can introduce night free offer depending on customer reactions. Dive-in Stores Innovative and cost effective billing plans Give away/ freebies wrt milestone billing Social networking websites Cross selling and promotions with TATAs other outlets like CROMA, Tanishq, TITAN

PRICE Background: TATA DOCOMO is entering a market where: o o o o o Product demand is highly price elastic. Substantial economies of scale are available. The product is suitable for a mass market (i.e. enough demand). The product will face stiff competition soon after introduction Because of the cut throat competition, price skimming will not work.

Pricing: The pricing objective is market penetration and to reach as many consumers as possible, setting a low initial entry price, lower than the eventual market price, to attract new customers. We expect that customers will switch to the new brand because of the lower price. This will help in fast diffusion and adoption. This will take the competition by surprise, not giving them time to react. This will also create goodwill among the early adopters segment. This can create more sales through word of mouth.

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Project Done By Rakesh Gupta

Tata Docomo Organizational Chart

Hierarchy Pyramid Of Tata Docomo

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Literature Review

Chapter 2

PRODUCT LINE DEFINED:


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Project Done By Rakesh Gupta

A product line is group of products that are closely related because they perform similar functions, are sold to the same customer groups and marketed through the same channels or fall within the same price range. PRODUCT WIDTH DEFINED: It refers to how many product lines the company carries PRODUCT LENGTH DEFINED: It refers to the total number of items in its product mix. Product Length for Paper Recharge Coupan

Top-up

SMS

GPRS

Music & Other

PRODUCT DEPTH DEFINED: It refers to how many variants are offered of each product line

Product depth for Paper Recharge Coupan

10 Rs

20 Rs

30 Rs

50 Rs

Research Methodology

Chapter 3

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Project Done By Rakesh Gupta

Objective of the study


Project study which is being conducted by me for the last two month is not only a formality for the fulfillment of the two year Master in Business Management. But being a management student and a good employee I tried my best to extract best of the information available in the market for the use of Company and people. The objectives have been classified by me in this project form personal to professional, but here I am not disclosing my personal objective which has been achieved by me while doing the project. Only professional objectives which are being covered by me in this project are as following-

To make A Comparative Analysis of Lower End recharge Coupon provided


by TATA DOCOMO with other mobile operator Product. To find out Retailer Perception toward Tata Docomo Lower End Recharge Coupon. To find out Which Company provide best trade scheme to Retailer. To find factor where the company need to improvement.

Scope of the Study


Each and every project study along with its certain objectives also have scope for future. And this scope in future gives to new researches a new need to research a new project with a new scope. Scope of the study not only consist one or two future business plan but sometime it also gives idea about a new business which becomes much more profitable for the researches then the older one.

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Project Done By Rakesh Gupta

Scope of the study could give the projected scenario for a new successful strategy with a proper implementation plan. Whatever scope I observed in my project are not exactly having all the features of the scope which I described above but also not lacking all the features .

Research study could give an idea about market Place of the Lower
End Recharge Coupon provided by Tata Docomo in Raipur City. In future Retailer requirements could be added with the product and services for getting an edge over competitors. Retailer behavior could also be used for the purpose of launching a new product with extra benefits which are required by Retailer as well as Tata Docomo Prepaid User.

Factors which are responsible for the performance for Company can
also be used for the modification of the strategy and product for being more profitable.

Tools and Techniques


As no study could be successfully completed without proper tools and techniques, same with my project. For the better presentation and right explanation I used tools of statistics and computer very frequently. And I am very thankful to all those tools for helping me a lot. Basic tools which I used for project from statistics are- Bar Charts
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Project Done By Rakesh Gupta

- Tables Bar charts are really useful tools for every research to show the result in a well clear, ease and simple way. Because I used bar charts and pie cahrts in project for showing data in a systematic way, so it need not necessary for any observer to read all the theoretical detail, simple on seeing the charts any body could know that what is being said. Technological Tools Ms- Excel Ms-Word Above application software of Microsoft helped me a lot in making project more interactive and productive. Microsoft-Excel had a great role in my project, it created for me a situation of you sit and get. I provided it simply all the detail of data and in return it given me all the relevant information. And in last Microsoft-Word did help me for the documentation of the project in a presentable form.

Research Design
The Research design which is used in this project is of Exploratory & Comparative in nature

Applied Principles and Concepts


While I started to do the project the main thing which was the matter of concern was that around what principles I have to revolve my project. Because with out having any hypothesis and objective we can not determine that what output or result we are expecting form the project. And second thing is that having only tools and techniques for the purpose of project is not relevant until unless we have the principals for which we have to use those tools and techniques. Mathematical Averages Percentage

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Project Done By Rakesh Gupta

Population
The entire Retailer selling Tata Docomo Product in Raipur City.

Sample Size
I have taken 980 Retailer from Raipur City

Sources of Primary and Secondary data:


For the purpose of project data is very much required which works as a food for process which will ultimately give output in the form of information. So before mentioning the source of data for the project I would like to mention that what type of data I have collected for the purpose of project and what it is exactly. 1. Primary Data: Primary data is basically the live data which I collected on field while doing cold calls with the customers and I shown them list of question for which I had required their responses. In some cases I got no response form their side and than on the basis of my previous experiences I filled those fields. Source: Main source for the primary data for the project was questionnaires which I got filled by the Retailer or some times filled me on the basis of discussion with the Retailer. 2. Secondary Data: Secondary data for the base of the project I collected from intranet.

Data Analysis and Interpretation


Benefit Analysis of Recharge Voucher
1. Compare Table for Talk Time Voucher

Chapter 4

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Project Done By Rakesh Gupta

MRP

Tata Docomo T/V A/b 300 Sec for 3 Days 300 Sec for 3 Days 300 Sec for 3 Days 300 Sec for 3 Days

T/V

Airtel A/b 5 SMS Free (11 Pm to 6Am) N/A 5 SMS Free (11 Pm to 6Am) N/A

Idea T/V A/b

Relince T/V A/b

10 20

6.07 15.13

6 N/A

6 N/A

5 min Idea to Ida N/A 10 minutes local I to I (11 PM to 6 AM) valid for 2 days 600

7.07 16.13

0 0

30 50

24.2 41.33

24 5

23 N/A

25 43.33

0 600

Interpretation:
Tata Docomo & Relience provide best talktime offer to Customer.

2. Compare Table for SMS Benefit Voucher


Tata Docomo
MR P 9 Benefit 100 Local/Nation al SMS 250 Local/Nation al SMS Daily 500 Local/Nation al SMS Free & then chargeable as per base tariff Vali dit y 30 MR P 20

Idea
Benefit 0 (Free 100 Local+Nation al SMS) All Local/National SMS @10 paise/SMS Valid ity 15 MR P

Relince
Benefit Local, National Sms @ 5p / Sms per day Local, National Sms @ 1p / Sms per day Vali dity MR P

Airtel
Benefit Val idit y

19

30

24

30

15

30

25 Local + National SMS )

49

30

50

400 Local/National Sms

30

39

30

20

100 Local+N ational SMS)

15

Interpretation:
Tata Docomo provide Best SMS offer to customer as compare to other Mobile Company

3. Compare Table for GPRS Benefit Voucher


Tata Docomo
MR P Free Usage Detail s Validit y MR P

Airtel
Free Usage Details Vali dity MR P

Relince
Free Usage Details Vali dity M R P

IDEA
Free Usage Details Va lid ity

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Project Done By Rakesh Gupta

11

50 MB 150MB with Rs.500 free conten t

Till midnigh t on day of recharg e

12

1GB 0(Free 100SMS+10 0 MB data) 200 MB data usage

Data Usage: 50MB

1 Internet Voucher: 2 GB USAGE absolutely free. Benefit Validity 30 Days

15

500 MB

14

1 Unlimite d upto 1GB

48

1 GB

21

18

51

15

98

30

Interpretation:
Tata Docomo provides best GPRS Plan To the Customer.

Statistical Analysis
1) Shop Category
EXCLUSIVE TELECOM SHOP GEN STORE MEDICAL SHOP STD

543

186

65

186

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Project Done By Rakesh Gupta

19% EXCLUSIVE TELECOM SHOP 7% 56% 18% GEN STORE MEDICAL SHOP STD

Interpretation:
After analyzing the Data table, researcher found that 56% Responder are from Exclusive Telecom Shop, 18 % General Store 19 % STD PCO and 7% are Medical Shop. 2. Since how long you are doing business?
LESS THAN 1 YEAR 98
9% 10%

1 TO 5 786

MORE THAN 5 96

LESS THAN 1 YEAR 1 TO 5 MORE THAN 5

81%

Interpretation:
After analyzing the Data table researcher Found that 81% Responder are doing Business From more than 1 Year and less than 5 Year,10% less than 1 year & 9 % responder doing business from more than 5 year.

3) Available stock of RCV at your shop

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Project Done By Rakesh Gupta

RENG E
RCV 5 Nil l 210

Airtel 04040 More 544 226

Idea Nill 187 0-40 579 40More 214 Nill 221

Relince 0-40 546 40More 213 Nill 273

Docomo 0-40 449 40More 258

700 600 500 400 300 200 100 0 More 0-40 0-40 Nill Nill 40-

RCV 5

More

Airtel

Idea

Relince

Docomo

RENG E
36

Airtel

Idea

More

More

0-40

0-40

Nill

40-

40-

Nill

40-

Relince

Docomo

Project Done By Rakesh Gupta

RCV 9

Nil l 98 0

040 0

40More 0

Nil l 98 0

040 0

40More 0

Nil l 98 0

040 0

40More 0

Nil l 64 2

040 243

40More 95

RCV 9 1200 1000 800 600 400 200 More More 0 0-40 Nill 40More More 0-40 0-40 0-40 Nill Nill 4040Nill 40-

Airtel

Id ea

Relince

Docomo

RENG E
RCV 30 Nil l 20 9

Airtel 04040 More 476 295

Nil l 17 6

Idea 04040 More 43 2 372

Nil l 22 1

Relince 04040 More 52 3 236

Nil l 26 2

Docomo 04040 More 495 223

RCV 30 600 500 400 300 200 100 0 0-40 More More More 0-40 0-40 0-40 More Nill Nill Nill 404040Nill 40-

Ai rtel

Idea

Relince

Docomo

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Project Done By Rakesh Gupta

RENG E
RCV 48 Nil l 980

Airtel 04040 More 0 0

Nil l 980

Idea 04040 More 0 0

Nil l 980

Relince 04040 More 0 0

Nil l 706

Docomo 040 40- More 274 0

RCV 48 1200 1000 800 600 400 200 More More More More 0-40 0-40 0-40 0-40 0 Nill Nill Nill 404040Nill 40-

Airtel

Id ea

Relince

Docomo

Interpretation:
After analyzing the Data, Researcher Found that Retailers doesnt keep all product range of paper RCV in their Shop.
4) Which company provides best talk time in tariff plan?

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Project Done By Rakesh Gupta

Company Idea Tata Dcomo Airtel Reliance

Exceed Exp.(4) 118 309 265 268

Meets Average Exp. (3) (2) 458 390 289 307 219 259 256 307

Below. Exp. (1) 185 31 170 98

Total [(Frequency) Retailers (Scale)] 980 2469 (23%) 980 2955 (28%) 980 2609 (24%) 980 2705 (25%)

Position 4 1 3 2

RELIANCE 25%

IDEA 23%

IDEA TATA DOCOMO AI RTEL RELIANCE AI RTEL 24% TATA DOCOMO 28%

Interpretation:
After analyzing the Data Researcher found that most of Retailer agrees that Tata Docomo Provides best tariff plan to the Customer.

5) Which Companys trade scheme is best?

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Project Done By Rakesh Gupta

Company

Exceed Exp.(4)

Meets Exp. (3)

Average (2)

Below. Exp. (1)

Total Retailers

[(frequency) Position (scale)]

Idea Tata Docomo Airtel Reliance

179 288 226 274

298 353 274 379

291 237 199 194

212 102 281 133

980 980 980 980

2404 2787 2405 2754

(23%) (27%) (23%) (27%)

4 1 3 2

RELI ANCE 27%

I DEA 23%

I DEA TATA DOCOMO AI RTEL RELI ANCE AI RTEL 23% TATA DOCOMO 27%

Interpretation:
After analyzing the Data, researcher Found that most of Responder agree that Tata Docomo Provide best Trade Scheme to the Customer after Tata Docomo, Relince Provide best Plan to the Customer.

6) Which companys is more transparent and honest in scheme settlement?

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Project Done By Rakesh Gupta

Company Idea Tata Docomo Airtel Reliance

Exceed Exp.(4) 229 341 264 182

Meets Exp. (3) 299 303 276 300

Average (2) 268 270 259 334

Below. Exp. (1) 184 66 181 164

Total Retailers 980 980 980 980

[(Frequency)

Position 3 1 2 4

(Scale)] 2533 (24%) 2879 (28%) 2583 (25%) 2460 (23%)

Reliance 24%

Idea 24%

Idea Tata Docomo Airtel Reliance Airtel 25%

Tata Docomo 27%

Interpretation:
After analyzing the Data researcher Found that most of Responder agree that Tata Docomo more transparent and honest in scheme settlement as compare to other companies.

Chapter 5
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Project Done By Rakesh Gupta

Findings and Recommendations

Finding:

Tata Docomo & Reliance, both are giving best talk time to the customer. Tata Docomo & Reliance, both are provide best trade scheme to the Retailer. Tata Docomo shows a little grown stage & Airtel and idea both are in Boom
Stage. Most of retailer dose not keep all type of product range in their Shop.

Most of retailer agree that Tata Docomo more transparent and honest in scheme
settlement as compare to other companies.

Researcher found some differentiate in Retailer Response, like Some Retailer Says
that Tata Docomo Provide best trade scheme & some Retailer Says that Reliance Provide best trade scheme.

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Project Done By Rakesh Gupta

Recommendations:
By virtue of its connectivity and advertising strategy Tata Docomo is successfully
grabbing the market share in India, but there are still some recommendations from my study point of view is that Tata Docomo needs to make its network service more stronger than other service providers to dominate the market in future too.

Tata Docomo need to Minimize the product length of Paper Recharge Coupon,
because most of retailer not able to maintain a minimum lever of all type of RCV.

Tata Docomo need to Appoint Some Executive for Resolving the Retailers Complain.

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Project Done By Rakesh Gupta

Appendix1: Questionnaire

Schedule
Part-1
1) Name of Retail shop-______________ 2) Name of Retailer__________________ 3) Address/colony_____________ 4) Phone no._________________ 5) Shop Category Exclusive telecom Shop ( Less Than 1 year ( ) ) Gen store ( ) ) Medical Shop ( ) STD ( ) ) 6) Since how long you are doing business 1 to 5 Year ( More than 5 Year (

Part-2
1)Available stock of RCV at your shop. Company Tata Docomo Virgin Idea Airtel Rs.5 SMS Rs.30 GPRS Rs.70 Rs.100

2) According to You which company provide the best tariff plans to customer? a. Idea ( ) b. Airtel ( ) c. Tata Docomo ( ) d. Reliance ( )

3) Which company provides best talk time in tariff plan? a. Idea ( ) b. Airtel ( ) c. Tata Docomo ( ) d. Reliance ( )

4) Which Companys trade scheme is best? a. Idea ( ) b. Airtel ( ) c. Tata Docomo ( ) d. Reliance ( )

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Project Done By Rakesh Gupta

5) Which companys is more transparent and honest in scheme settlement? a. Idea ( ) b. Airtel ( ) c. Tata Docomo ( ) d. Reliance ( )

6) Give your valuable suggestions to improve products and services of telecom companies. ______________________________________________________________________ _____________________________________________________________________

Date -_________

Thank You,

(Signature)

Place __________

Appendix 2: Reference Material

http://www.tatadocomo.com/ http://www.tatateleservices.com/ http://wikipedia.org/

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