The comparative of study HUTCH & its competitor
Chapter 1 Executive summary Introduction Literature Review Statement of problem Scope of the study
Objective of study
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The comparative of study HUTCH & its competitor EXECUTIVE SUMMARY This study is oriented towards the comparative of study HUTCH & its competitor. Today, telecom sector has become a very essential aspect of each industry. Every organization strives hard to retain its customers at any cost, in order to achieve this it is necessary for the organization to study the behavior of the its customers and meet their expectations and preferences. The study focuses on the Pre Paid Service, which is been offered by the company.
The Research Study represents the theoretical background initially which is followed by the Research Design. The objective of the research is to find out the customer satisfaction of HUTCH users and also the perception of other mobile service users towards HUTCH. The research has also led to understand the current market situation in terms of customer preferences, customer attitude, available alternatives, price sensitivity, buying decisions, and product attributes etc.
The research was purely based on the survey conducted in Belgaum city and has been focused on Hutch Subscribers. The sampling technique used was simple random sampling of HUTCH users. The data was collected through personal interview and questionnaire. The research instrument used was a questionnaire, which helped in knowing the pulse of the customers.
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The comparative of study HUTCH & its competitor The sample size taken was 100; the questionnaire was then analyzed with help of table and charts. The analysis also helps us to know more about the consumer perception, buying behavior, attitude of the customers etc. The findings reflect that the tariffs plans, promotion of the company and influence of the social circle had a huge impact over the subscribers. Most of them opted for HUTCH because it was cost effective. The extensive promotion of HUTCH has a huge impact over the subscribers. Roaming service on prepaid cards was highly utilized. Majority of the subscribers recharged well in advance the validity. The service was utilized more during the day. Most of them prefer HUTCH when compared to its competitors is the tariff aspect. They felt that the tariff HUTCH is providing is really economical. A general industry profile has also been discussed followed by the company profile. The study also highlights the McKinney 7 s framework in terms of the company scenario. Further the service profile is discussed. The SWOT analysis helps us to know more about the company’s Strengths, Weakness, Opportunities, and Threats. The SWOT also helps in identifying the challenges faced by the company in this competitive world. Lastly, the suggestions have been extracted from the analysis and the interpretations. Keeping the above factors in consideration we arrive to a suitable conclusion.
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INTRODUCTION Competitive holds immense importance in today’s marketing scenario and the companies should try to satisfy their customers. Satisfied customers usually return and buy more, they tell other people about their experiences, and they may well pay a premium for the privilege of doing business with a supplier they trust. Statistics are bandied around that suggest that the cost of keeping a customer is only one tenth of winning a new one. Therefore, when we win a customer, we should hang on to them. Customer satisfaction and loyalty research has become an essential business tool to help retain and increase the customer base. The main principal of any successful customer satisfaction programmed is to establish the issues that are of greatest importance to ones target audience. The research programmers develop focused customer strategies and provide intelligence to help identify and priorities management objectives. The research here is carried to know the customer satisfaction of mobile users in the Telecom industry .the whole Telecom industry is undergoing a stupendous growth especially after so many players taking a plunge into in the mobile service business. Now buying mobile is not a rich man’s possession any more. The mobile industry is on whopping high. With various technologies creeping in every day you always are on a back seat to keep your self updated. With a major chunk of the users being teenagers it makes the situation more dynamic and helps to create a niche market in itself. Looking at the industry trends in mobile segment, the growth is tremendous. Various cellular providers try to be innovative in providing Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor value added services to the subscribers. If the demand is rising in same pace then it is for sure that the subscriber base of the mobile users will definitely exceed the limit of the landline subscribers. They are so many mobile service providers in India; the competition between them to capture the market share is immense. The strategies and promotions they practice are awesome. At the end of all these strategies and promotion their main objective is to satisfy the existing customers, retain them and to attract potential customers. The current trends and dynamism in this field invoked me to carry on a research to know the factors that influence the customer satisfaction in the Telecom industry. Hutch, which is hot favorite among students, encouraged me to take the study on hutch because of their promotions and marketing strategy. This study deals with exploring the factors that effect the satisfaction of customers of HUTCH and also tries to discover the satisfaction level of mobile service customers other than HUTCH who can be the prospective customers for HUTCH in future. The research has also led to understand the current market situation in terms of customer preferences, customer attitude, available alternatives, price sensitivity, buying decisions, and product attributes etc. It has been a sincere effort to explore the factors that can lead to total customer expectation of the HUTCH service users. Also the study of the customer perception & attitude of other mobile service users has resulted to highlight those issues that the customers give value to and regard important as, which will help the company to attract more and mare new prospective customers. Babasabpatilfreepptmba.com
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LITERATURE REVIEW
Core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990): ďƒ˜ It provides customer benefits ďƒ˜ It is hard for competitors to imitate ďƒ˜ It can be leveraged widely to many products and markets. A core competency can take various forms, including technical/subject matter know how, a reliable process, and/or close relationships with customers and suppliers (Mascarenhas et al. 1998). It may also include product development or culture such as employee dedication. Modern business theories suggest that most activities that are not part of a company's core competency should be outsourced. If a core competency yields a long term advantage to the company, it is said to be a sustainable competitive advantage. Characteristics of Core Competencies There are three tests for Core Competencies Potential access to a wide variety of markets - the core competency must be capable of developing new products and services A core competency must make a significant contribution to the perceived benefits of the end product. Core Competencies should be difficult for competitors to imitate. In many industries, such competencies are likely to be unique
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COMPETITOR ARRAY One common and useful technique is constructing a competitor array. The steps include: define your industry - scope and nature of the industry determine who your competitors are determine who your customers are and what benefits they expect determine what the key success factors are in your industry rank the key success factors by giving each one a weighting - The sum of all the weightings must add up to one. rate each competitor on each of the key success factors - this can best be displayed on a two dimensional matrix - competitors along the top and key success factors down the side. multiply each cell in the matrix by the factor weighting. sum columns for a weighted assessment of the overall strength of each competitor relative to each other. COMPETITOR PROFILING Another common technique is to create detailed profiles on each of your major competitors. These profiles give an in-depth description of the competitor's background, finances, products, markets, facilities, personnel, and strategies. This involves: Background location of offices, plants, and online presences history - key personalities, dates, events, and trends Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor ownership, corporate governance, and organizational structure Financials P-E ratios, dividend policy, and profitability** various financial ratios, liquidity, and cash flow Profit growth profile; method of growth (organic or acquisitive) Products products offered, depth and breadth of product line, and product portfolio balance new products developed, new product success rate, and R&D strengths brands, strength of brand portfolio, brand loyalty and brand awareness patents and licenses quality control conformance reverse engineering Marketing segments served, market shares, customer base, growth rate, and customer loyalty promotional mix, promotional budgets, advertising themes, ad agency used, sales force success rate, online promotional strategy distribution channels used (direct & indirect), exclusivity agreements, alliances, and geographical coverage pricing, discounts,and allowances Facilities plant capacity, capacity utilization rate, age of plant, plant efficiency, capital investment location, shipping logistics, and product mix by plant Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor Personnel number of employees, key employees, and skill sets strength of management, and management style compensation, benefits, and employee morale & retention rates Corporate and marketing strategies NEW COMPETITORS In addition to analyzing current competitors, it is necessary to estimate future competitive threats. The most common sources of new competitors are: Companies competing in a related product/market Companies using related technologies Companies already targeting your prime market segment but with unrelated products Companies from other geographical areas and with similar products New start-up companies organized by former employees and/or managers of existing companies The entrance of new competitors is likely when: There are high profit margins in the industry There is unmet demand (insufficient supply) in the industry There are no major barriers to entry There is future growth potential Competitive rivalry is not intense competitive advantage over existing firms is feasible
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S T R A T E G Y - C O M P E T I T O R A N A LY S I S Competitor Analysis is an important part of the strategic planning process. This revision note outlines the main role of, and steps in, competitor analysis Some businesses think it is best to get on with their own plans and ignore the competition. Others become obsessed with tracking the actions of competitors (often using underhand or illegal methods). Many businesses are happy simply to track the competition, copying their moves and reacting to changes.
Competitor analysis has several important roles in strategic planning: •
To
help
management
understand
their
competitive
advantages/disadvantages relative to competitors • To generate understanding of competitors’ past, present (and most importantly) future strategies • To provide an informed basis to develop strategies to achieve competitive advantage in the future • To help forecast the returns that may be made from future investments (e.g. how will competitors respond to a new product or pricing strategy? Definition of Comparative Advantage: To illustrate the concept of comparative advantage requires at least two goods and at least two places where each good could be produced with scarce resources in each place. COMPARATIVE ADVANTAGE In economics, the theory of comparative advantage explains why it can be beneficial for two parties (countries, regions, individuals and so on) to trade Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor if one has a lower relative cost of producing some good. What matters is not the absolute cost of production but the opportunity cost, which measures how much is given up of one good to produce a unit of the other good. Comparative advantage is critical to understanding modern international trade theory. Under absolute advantage, one country can produce more output per unit of productive input than another. With comparative advantage, even if one country has an absolute (dis)advantage in every type of output, it it can benefit from specializing in and exporting those products in which it has a relative advantage (i.e., a lower opportunity cost) and importing the good in which it has a relative disadvantage.[1]
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STATEMENT OF THE PROBLEM “A comparative study of Telecom service provided by Hutch and its competitor to assess market share at Belgaum city”. The study deals with. Customer preferences and expectations from mobile services provider the myriad factors that have a fearing or influence customer purchase decision are of paramount importance to the service providers. In order to retain its subscribers it is necessary for the organization to study the behavior of the existing and new subscribers and meet their expectations and preferences. Statement of the problem has been summarized as consumer Behavior of cellular providers and a market survey on Hutch Subscribers. Management Problem Through this project the company wants to know the competitive position of hutch & also the reasons for the customer shift. Research Problem The research was to know market share of mobile services provider, and the factor-influencing sales of mobile services provider PURPOSE OF THE STUDY: The proposed outcomes of the study are: Firm will be getting the updated information about the present market position. Firm will know their present market share. Study will be helpful to know the customer’s perceptions and preferences regarding the telecom services. Based on this organization may have to Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor adopt some useful strategies to meet customer expectations and can obtain good word of mouth and due to this can get potential customers.
SCOPE OF THE STUDY A study of this kind helps to put theoretical aspects into the project and aims to give information to HUTCH. Nature of study methods used, findings of the investigation, conclusion and recommendations inferred from the findings also aims to enable HUTCH to implement the recommendations made at the end of the study. The scope of study is limited in Belgaum city for Hutch subscriber. The following area selected for scope of study Nehru nagar, shivbasva nagar, sadashiv nagar, TV center hanuman nagar azam nagar channam nagar tilkwadi shapur
OBJECTIVES OF THE STUDY 1.To find the market share of various mobile services provider 2.To know customer preferences and expectations from mobile services provider 3. To know the pricing strategy of mobile service providers. 3.To analyze the factor influencing the sales of mobile services provider 4.To explore the reason for consumer shift
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Chapter 2 Organization Profile Product Range Organization Chart Training In Jinabakul Sampling Research Design Measuring Tools Data collection method Limitation
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INDUSTRY AND COMPANY PROFILE Indian Telecom sector continues to ring in higher growth, albeit slower growth in subscriber addition. During APRIL 2005, the sector added 1.91mn subscriber, which has fell short of January 2005 subscriber addition at 1.95mn. In March 2005 the sector had added 1.61mn subscribers. Subscriber addition in mobile segment continues to drive the sector growth. Of the total subscriber addition of 1.87mn during August 2004, 1.67mn subscribers were added in the mobile segment. GSM mobile alone added 1.41m new subscribers. Rest addition was in the CDMA (0.26mn) segment. Meanwhile fixed line segment continued to move at a snail pace and added just 0.2mn subscribers. Various factors have contributed to such stupendous growth in subscriber addition that included increased drive from the telecom services provider through various promotional schemes, increasing quality of telecom infrastructure and growing need for communication. Above all, the growing competition amongst the service providers has led to decline in tariff rate, which is lowest in the world. Just when it seemed that tariff of mobile services had bottomed out; telecom operators announced a series of rate cuts followed by Reliance. Bharti under brand name ‘Airtel’ and Reliance announced rate cuts up to 60% offering local call at Rs1-0.99/min on there own network. Tata Indicom and BPL announced 1-sec pulse rate billing to attract customers. BPL under pre-paid plan offers 46% talk time at Rs0.03/sec pulse rate on and Tata offered 100% talk-time at Rs0.05/sec pulse rate on their pre-paid cards.
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As in the above chart we see that the how technology and changed over years from time the first basic phone to a mobile technology and now to EDGE Technology. Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor MOBILE Mobile continues to form major chunk of subscriber addition i.e. 89% in August 2004. Mobile segment grew by 4.2% mom to 41.12 million subscribers. Of the total subscribers added 85% form GSM mobile subscribers and the rest 15% were CDMA subscribers. Reliance continues to maintain its top position with 21.6% market share. Reliance subscriber base grew by 3.4% mom to 8.7million.Bharti maintained its second place at 20.4%, while BSNL increased its market share to 16.9% to remain at third place.
Cellular coverage in INDIA.
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In India Pre Paid has a gain over Post Paid, 67% of the subscriber base is Pre Paid compared to Post Paid. GSM MOBILE GSM subscriber base grew by 4.6% mom to 32 million in August 2004. BSNL recorded higher growth rate and its subscriber base grew 10.1% mom to 6.8mn subscribers. BSNL created history by adding 627,713 subscribers in a month, which is highest -ever to be achieved by any mobile operator. Subscriber addition in Tamil Nadu, Chennai and Kolkata were major growth drivers for BSNL. Bharti subscriber base grew by 3.6% mom to 8.2 million, though company maintained its top position its market share dropped slightly to 25.8%. Hutch (without Aircel) maintains third position with subscriber base of 6.1million. CIRCLE GROWTH In circle wise growth ‘C’ circle continues to be the fastest growing circle due to its low base. In ‘C’ circle Reliance and BSNL are the major operator. Reliance is depending on CDMA technology for its growth. Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor BSNL’s dependence on GSM technology is driving its growth in this circle. Circle ‘A’ accounts for highest share of 37% and grew 5.1% mom. Growth in ‘A’ circle is lead by Karnataka and Tamil Nadu circle, which grew 7.9% and 8.7% mom. CDMA Mobile segment CDMA Subscriber base grew 3% mom to 8.6mn. Reliance maintained its leadership position with 91% market share. Net addition among private players was almost through Reliance, which had 98.7% market share. Tata Tele services lost 19,770 of its subscribers as a result of disconnection due to outstanding bills.
Fixed line In the month 0.2mn subscribers were added in the fixed line segment and total subscriber base stood at 41.12mn. Growth in Fixed line segment is predominately coming from Fixed Wireless Terminals.
HUTCHISON TELECOM • Brand Name: HUTCH • Network: GSM 900, GSM 1800, GPRS, EDGE • Network Coverage: 16 Telecom Circles • Subscriber base: 5,999,850 • Market Share: 20% • Subscriptions: Post Paid, Pre Paid
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OTHER GSM OPERATORS BHARTI • Brand Name: AIRTEL • Network: GSM 900, 1800, GPRS, EDGE • Network Coverage: 17 Telecom circles • Subscriber base: 8,000,553 (May 2004) • Market Share: 26% • Subscriptions: Post Paid, Pre Paid Bharti was the first mobile operator operational in India. India’s first GSM based phone call was made on Airtel network. IDEA CELLULAR • Brand Name: IDEA • Network: GSM 900, 1800, GPRS, EDGE • Network Coverage: 6 Telecom circles
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The comparative of study HUTCH & its competitor • Subscriber base: 4,214,571 • Market Share: 14% • Subscriptions: Post Paid, Pre Paid CDMA Operators RELIANCE • Brand Name: RIM- Reliance India Mobile • Network: CDMA 2000-1x • Network Coverage: 18 Telecom circles • Subscriber base: > 6,8 million • Market Share: 80% • Subscriptions: Post Paid, Pre Paid TATA INDICOM • Brand Name: TATA or TATA Indicom • Network: CDMA 2000-1x • Network Coverage: 6 Telecom circles • Subscriber base: > 2 million • Market Share: 8 – 10% • Subscriptions: Post Paid, Pre Paid OUTLOOK The recent tariff cuts announced by various telecom operators would affect the bottom line of these companies. The company’s that are unequipped to match up with the competition and does not have economies of scale would loose out in this race. Smaller players might find difficult to be in the business and may merge with big players leading to consolidation in the industry. Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor
COMPANY PROFILE Hutchison Essar is a part of the internationally acclaimed Hutchison Whampoa group, a diversified, multinational conglomerate with its origins dating back to 1828 in Hong Kong. The parent company, Hutchison Whampoa Limited, is a part of the Li Ka-Shing group of companies. It is one of the largest companies listed on the Hong Kong stock exchange. The Group operates five core businesses in 41 countries and employs around 1,50,000 people worldwide. It is one of the most profitable businesses in Asia.
The five core businesses of Hutchison Whampoa are: Ports and Related Services: World leading port investor, developer and operator with interests in over 31 ports throughout Asia, Africa, Europe and the Americas.
Telecommunications and e-commerce: One of the leading owners and operators of telecommunications and Internet infrastructure in around 17 countries worldwide. Property and Hotels: Has an investment portfolio of approx 13.7 million sq. ft. of commercial, office, industrial and residential premises. Retail and Manufacturing: Owns 3 major stores – Watsons, Fortress and PARK-n-SHOP with more than 800 stores in the region. With the acquisition of the Kruidvat Group of the Netherlands, Hutchison became one
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The comparative of study HUTCH & its competitor of the world’s largest health and beauty retail outlets in Asia and six European countries. Energy, Infrastructure, Finance and Investments: Hong Kong and Lamma Islands run on electricity generated by Hutchison. It holds 84.6% interest in Cheung Kong infrastructure – a leading investor in the infrastructure sector in Hong Kong, PRC and Australia.
Group Structure of Hutchison Whampoa Limited
Hutchison Telecommunications
Hutchison Telecommunications is a wholly owned subsidiary of Hutchison Whampoa Limited. It operates a wide range of integrated telecommunications services in over 17 countries. It was formed in 1985 to run a cellular network in Hong Kong and now has become a Formidable force in mobile communications. It has business interests in fixed line services, Internet services, fiber optics, mobile telephony (voice and data), trucked mobile radio and radio broadcasting. But its main interest internationally is in providing mobile telephony. Hutchison Essar in India
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The comparative of study HUTCH & its competitor Hutchison established its presence in India way back in 1994 by acquiring the cellular license for Mumbai. It launched cellular service in the city of Mumbai on a GSM 900 network under the brand name Max Touch in the year 1995. It became synonymous with being the first ‘service brand’ in telecom by making innovations both in customer service and technology. In early 2000, Orange was launched in Mumbai.
In 2000, Hutchison did a joint venture with Essar to expand its presence in the country. Hutchison Essar acquired the cellular licenses in Delhi, Kolkata and Gujarat in 2000 to become one of the largest cellular businesses in the country. Hutchison Essar won the bid to operate as the 4th cellular service provider in Chennai, Karnataka and Hutchison Telecom has a successful track record in identifying potential countries and technologies, developing them and creating shareholder value over a long term. One of its key success stories was developing the first consumer brand in telecom – Orange. It is one of the largest 3G players worldwide. Hutchison 3G has been given licenses to operate in UK, Italy, Israel, Denmark, Sweden, Austria, Ireland, Australia and Hong Kong. Hutchison is the first operator to offer 3G services in Australia, Italy, the UK and Sweden. Hutchison established its presence in India in 1994, through a joint venture with Max India Limited. In 1995, Hutchison Max Telecom became the first operator in India to launch its cellular service. Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor Today, Hutchison is the one of the largest providers of cellular services in India with presence in all the major regions - Orange in Mumbai and Hutch in Delhi, Karnataka, Andhra Pradesh, Chennai, Kolkata, Gujarat, Haryana, Rajasthan, UP (E), Punjab, West Bengal, UP (W), Sikkim, and Tamil Nadu. Hutchison affiliates jointly account for the largest number of cellular subscribers in India numbering over 5.7 million. Hutch in Karnataka is part of the Hutchison network, the second largest cellular service provider in India - covering over 23% of the national footprint and 50% of national purchasing power, with a subscriber base that exceeds 4 million.
At Hutchison, our philosophy is simple - to provide superior mobile communications services across the country at affordable rates. Hutch spans eight important telecom circles across the country. It covers Mumbai under the brand name Orange, and covers Delhi, Rajasthan, Haryana, UP [E], Chennai, Andhra Pradesh, Gujarat, Kolkata and Karnataka under Hutch
Hutch's Old Logo
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The comparative of study HUTCH & its competitor Recently (in 2006) Orange was renamed as Hutch, using a pink background in advertising material instead of the previous orange colour. Before the transition, Mumbai was overrun with billboards that simply said "Bye". A week later, the same billboards, along with the rest of the country, sported the Hutch tristar in a new, vivid pink. At the time, Mr. Naveen Chopra, corporate vice president, group marketing, Hutchison Essar, said, "The idea is just to refresh the brand, and inculcate a new 'Hutch spirit'." But the brand makeover had less to do with creating excitement and more with renouncing the Orange brand to Orange Telecom and creating the new pan-Indian Hutch brand. With Vodafone acquiring 67% of Hutch for U$11.1b, Vodafone is going to replace the Hutch brand with the Vodafone brand. Acquisition
Hutch (in mid 2006) bought BPL mobile (a smaller Indian rival), in a deal valued at $1.15 billion. After the acquisition, Hutch has close to a 53% stake (which includes direct and indirect holdings), while Essar has over 30%. The remaining stakes are held by Kotak group (8%) and Hindujas and Max (together 8%). THE TOP MANAGEMENT Asim Ghosh, Managing Director, Hutchison Essar Harit Nagpal, Vice-President, Corporate Marketing, Hutch Samuel Selvakumar, Chief Executive Officer, Hutch – Karnataka & Chennai
AWARDS
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The comparative of study HUTCH & its competitor 1. HUTCH is rated as 'Best Mobile Service in the Country' by the national TNS survey of mobile users. 2. HUTCH is named 'Most Respected Telecom Company' by Business World. 3. HUTCH has been Named 'Creative Advertiser of the Year' and has won the 'Campaign of the Year' award at the annual Abby 2004 advertising awards function. 4. Diagrammatic representation of Hutchison Essar’s presence in India
THE Mc KINSEY 7-S FRAMEWORK
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The 7-S Model is better known as McKinsey 7-S. This is because the two persons who developed this model, Tom Peters and Robert Waterman, have been consultants at McKinsey & Co at that time. They published their 7-S Model in their article “Structure Is Not Organization” (1980) and in their books“The Art of Japanese Management” (1981) and “In Search of Excellence” (1982).
STRATEGY
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The comparative of study HUTCH & its competitor The integrated vision and direction of the company, as well as the manner in which it derives, articulates, communicates and implements that vision and direction. Hasn’t expanded footprint indiscriminately and has focused on the juicier market first. Matched competitors’ prices, but never positioned the brand on the price plank. Focused on getting a larger share of higher paying user through value added services. Has tried to pre-empt the second stage of market evolution by focusing on margin. IMPACT Despite having a smaller footprint, its top line is just 14% off the industry leader Bharti’s. Its tariffs are not the lowest in the market, but low enough. Has consistently netted the highest average revenues per user in industry. Gross profit has increased ten times to $90 million in the 6 months to June 30, 2004. Marketing Strategy Comparison of Airtel and Hutch By Rahul Guhath more SLIDESHOW TRANSCRIPT Slide 1: Marketing Strategy Comparison AirTel & Hutch Rahul, Priyanka, Zardar, Rashmi Indian Institute of Planning & Management Ahmedabad Slide 2: Project Introduction “…Telecoms are rolling out like never before. And that 100-million mark doesn't look too far away. The mobile subscriber Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor base crossed 65 million in September 2005, an over-30 per cent increase over the previous year…” Slide 3: Project Introduction Cont’d… • Indian Cellular Industry will touch $24 billion by the end of 2006. • Airtel (22 per cent market share, over 15 million mobile subscribers, source: Cellular Operators Association of India) witnessed its highest-ever net addition of 1.8 million mobile customers in a single quarter. Slide 4: Project Introduction Cont’d… • Hutch, with over 10 million subscribers (15 per cent market share) may be No. 4 (behind Reliance and BSNL) at present, but it has the highest average revenue per user. Slide 5: AirTel Marketing Strategy Business Process Management Process Innovations and Continuous Improvement through People Involvement Problem Investigation by "Fact Based - Root Cause Analysis" Slide 6: Cont’d… Customer-Defined Business Processes Based on Customer Specifications, AirTel have webbed many business processes on the following concepts: Delivery time Turn around time Lead-time Time to market Other performance indicators Slide
7:
AirTel
Marketing
Strategy
Cont’d…
Result
Oriented
Approach Each process has been designed by first planning the desired result. The targeted results are then arrived at through identification of the following: The next-customer and end-customer expectations. Quantifiable purpose of the process and key result areas. Past experience of "What went wrong and can go wrong". Slide 8: AirTel Marketing Strategy Cont’d… Naturally, the target customer was clearly defined: elite, up market professionals and entrepreneurs. "We Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor positioned AirTel as an aspirational and lifestyle brand, in a way that trivialized the price in the mind of the consumer. It was pitched not merely as a mobile service, but as something that gave him a badge value,“ – recalls Hemant Sachdev, chief marketing officer (mobility) and director, Bharti Tele-Ventures.
Slide 9: AirTel Marketing Strategy Cont’d… • in 1999, the rules of the game changed. The New Telecom Policy came into effect, replacing licence fees with a revenue-sharing scheme and extending the licence period from 10 to 20 years. • Now, cellular service operators could drop their prices and target new customer segments. As SEC B became part of the catchment area, Airtel's communication changed from "power" to "touch tomorrow".
Slide 10: AirTel Marketing Strategy Cont’d… • In 2002, Airtel signed on music composer A R Rahman and changed its tune to "Live every moment": Rahman's signature tune for Airtel is, perhaps, the most downloaded ring tone in India. But that was just part of the ongoing communication.
Slide 11: AirTel Brand Review • AirTel has the most recognizable brand in the Indian operator space, with 30.8% of our respondents able to identify it as a mobile brand unaided. • while this is lower than many of its competitors, examination of the various brand strength indicators shows AirTel has a much stronger brand than its competitors do. Source: IE Market Research Corp. – 30th Oct 2006 - 14 Pages - ID: IEMR1370648
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The comparative of study HUTCH & its competitor Slide 12: AirTel Brand Review cont’d… • of respondents, 27.4% identified AirTel with “cool”, 26% with “creative”, and 22% with “technically advanced”. Only 8.6% of respondents identified AirTel with “cheap”. • Between 2004 and 2005, it has increased its market share from 20.5% to 21.5% of the market. Source: IE Market Research Corp. – 30th Oct 2006 14 Pages - ID: IEMR1370648 Slide 13: AirTel Ad Campaigns Slide 17: Hutch Marketing Strategy “…A big success factor was how aspirational overtones in brand imagery stayed, even though price wars had started. Again, the colour orange was a seminal attribute; the brand's slogan was 'The future's bright, the future's orange'…” Slide 18: Hutch Marketing Strategy Cont’d… “…The new brand name also heralded the arrival of a new mascot, the "Hutch" pug. When Hutch launched the Abby-winning "Wherever you go our network will follow'" ad, viewers believed that was Hutch's new slogan, but it was just one brand attribute …” Slide 19: Hutch Marketing Strategy Cont’d… Value-added services • "Privileges" (discount coupon booklets), cricket scores and stock market information - have formed as critical a part of Hutch's marketing efforts as it’s advertising. • Hutch World (GPRS service), • Hutch Alive (non-stop, streaming action) • Hutch4Help, a unique dial-in 'convenience' service, all emphasize the premium attributes of the service. • Chhota Recharge, small value recharge cards (starting at Rs 10), which will also help mobilize small spenders. Slide 20: Hutch Mobile Shop - A great initiative Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor Slide 21: Hutch Ad Campaigns Slide 24: Marketing Research Analysis which card is used. HUTCH 21% AIRTEL 0% BSNL 50% TATA INDICOM 29% IDEA Slide 25: Marketing Research Analysis Cont’d… Service provided by the customer care 4% 4% yes, I m satisfied. No, not satisfied. Can’t say 92% Slide 26: Marketing Research Analysis Cont’d… network connectivity yes, I m satisfied. No, not satisfied. Can’t say. Slide 27: Marketing Research Analysis Cont’d… Quality provided by Service Provider 0% yes, I m satisfied. 39% no, not satisfied. 61% can't say Slide 28: Marketing Research Analysis Cont’d… Billing System 21% yes, I m satisfied. 49% no, not satisfied. Can’t say 30% Slide 29: Marketing Research Analysis Cont’d… Card do you prefer 48% prepaid postpaid 52% Slide 30: Marketing Research Analysis Cont’d… Cost satisfaction 10% yes, I m satisfied. No, not satisfied. 33% 57% can't say Slide 31: SERVQUAL model The Measurement and Evaluation of Service Quality - SERVQUAL model: Service Quality = (Performance – Expectation) the word ‘SERVQUAL’ is an abbreviated form of service quality. The measurement was developed by Parasuraman, Zeithaml, and Berry (hereafter, PZB) in 1985. Slide 32: Five Dimensions of SERVQUAL Model (Revised from Kotler, P 1999
Marketing
Management,
Millennium
Edition
Prentice
Hall)
Dimensions Descriptions Tangibles The appearance of Physical facilities, equipment, personnel and communication materials. Reliability The ability to
perform
the
promised
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service.
Dependably
and
accurately. Page 34
The comparative of study HUTCH & its competitor Responsiveness The willingness to help customer & provide prompt service. Assurance The knowledge & courtesy of employees and their ability to convey their trust and confidence. Empathy The provision of caring individualized attention to customers Slide 33: SERVQUAL Model Methodology • the raw data used in computing coefficient alpha were in the form of difference scores. • A difference score for each item Q, representing perceived service quality was found by subtracting the expectation score from the corresponding performance (or perception) score (Q = P – E) Slide 34: Research Findings • GSM service providers (cellular), customers seem satisfied with the 'ability to make and receive calls in any part of the city', however, the service providers have fallen short in meeting customers expectations when it comes to coverage within buildings, in basements or in lifts. Slide 35: Research Findings Cont’d… • The corporate image of the service provider continues to be an important aspect in driving retention and most service providers have been successful in building a positive and favorable image among the subscribers. Slide 36: Research Findings Cont’d… • The study also revealed that 'Error free' and 'accurate' bills, being promptly delivered is something that the customers seem to be taking for granted and have little impact on retention. On the contrary, non-delivery on these could cause a lot of disgruntlement and unhappiness with the service provider.
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The comparative of study HUTCH & its competitor Slide 37: Research Findings Cont’d… • another revelation was that customers seemed very peeved with the amounts they had to pay for local and STD calls. Slide 38: Research Findings Negative Outcomes the cellular industry has performed below average in various aspects related to • 'customer care / helpline'. These include 'time taken before someone attends to you', their 'ability to resolve complaints/ queries in the first instance' Slide 39: Research Findings Negative Outcomes Cont’d. • 'Overall time taken to resolve complaints', call center personnel's ability to take decisions. • 'Knowledge of customer care personnel about tariff plans and schemes' and • 'the promptness in taking action on complaints'. Slide 40: Samit Sinha, Managing Partner, Alchemist Brand Consulting “. There isn't a great deal of differentiation in terms of pricing, services, schemes and so on, but there are differences in approach. Overall, AirTel is focused on functionality and efficiency, while Hutch has veered towards warmth and emotions…” Slide 41: Meenakshi Madhvani, Managing Partner, Spatial Access • “… it would not be right to conclusively say that Brand A is stronger than Brand B. However, if you consider adoption of the service by consumers as an indicator of brand strength, then AirTel would rank reasonably high…” Slide 42: •“. What matters is what the customers want." - Mittal, CEO Bharti Teleservices Slide 43: Other Indian Cellular Service Providers
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The comparative of study HUTCH & its competitor
STRUCTURE The policies and procedures, which govern the way in which the organization acts within itself and within its environment. ORGANISATION STRUCTURE AND VARIOUS DEPARTMENTS
TERRITORIAL CIRCLES Circle Definition: Areas classified on the basis of subscriber and revenue potential, where Metro circle has the highest potential and C circle has the lowest .The entire nation is divided in 4 circles namely METROS, A, B AND C. Metro circle: Delhi, Mumbai, Kolkata & Chennai. A Circle: States of Maharshtra, Gujarat, Andhra, Karnataka & Tamil Nadu. B Circle: States of Kerala, Punjab, Haryana, Uttar Pradesh, Rajasthan & Madhya Pradesh.
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The comparative of study HUTCH & its competitor C Circle: States of Himachal, Bihar, Orissa, Assam, Kashmir and North East States. Hence the territory manager looks after a particular zone or circle. Any operations in these circles will be headed by him. Human Resource The basic function of the human resource department is to manage the manpower in an efficient and effective manner. The recruitment and selection, procedures including the training of the employees is the responsibility of the human resource department. Planning The planning department is lead by key persons of the company, as effective planning leads the organization. The job of the planning Department is to plan and present the plans to the top management and operational department. It plays a vital role in the achievement of organizational goals.
Operations The operations department is an action oriented department. The operations department implements or executes the plan, which is presented to them from the planning department. Communication The communication department is a technical department, which deals with the technologies provided. It helps the organization to identify and analyze the efficient and effective alternatives of providing service. The
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The comparative of study HUTCH & its competitor communication
department
also
helps
in
providing
cutting-edge
technologies to its subscribers. Finance The finance department is a common department in all the organizations as they say Finance is the lifeblood of the business. The basic function of the finance department is allocation and maintenance of fund and resources of the organization. Investment is a crucial factor in business hence the finance department helps the organization to invest in right areas in order to have maximum returns. SYSTEM The decision-making systems within the organization can range from management intuition, to structured computer systems to complex expert systems and artificial intelligence. The flow of information between each department is through memos, circulars. Any decision is taken by conducting meetings. Information reaches the ultimate customers through retail system. The interaction between subscriber and the company is given below The subscribers who are interested in Prepaid Connection may visit any of the HUTCH Dealers or outlets. Then the subscriber is given information about the service. If the subscriber is interested in buying the connection he will have to fill a form, which contains his personal details with the proof that is (passport, driving license‌etc). Then the service will be activated and subscriber is ready to avail the service.
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The comparative of study HUTCH & its competitor STYLE: Style refers to the employees shared and common way of thinking and behaving - unwritten norms of behavior and thought. The style also includes the various Performance Appraisal techniques and Employee training procedures. STAFF: Staff means that the company has hired able people, trained them well and assigned them to the right jobs. Selection, training, reward and recognition, retention, motivation and assignment to appropriate work are all key issues. SKILLS: Skills refer to the fact that employees have the skills needed to carry out the company's strategy. Training and Development - ensuring people know how to do their jobs and stay up to date with the latest techniques. SHARED VALUES: Shared value means that the employees share the same guiding values. Values are things that you would strive for even if they were demonstrably not profitable.Values act as an organization’s conscience, providing guidance in times of crisis. Identifying corporate values is also the first essential step in defining the organization’s role in the larger community in which it functions. “Our - Pathfinders for a New Medium” We are not in the business of selling phones. Our mission is to enhance people's lives - we are creating a service that, upon demand, shows you where you are, what you want and how you want it - and puts it in the palm of your hand. Over time, we hope that this will become an indispensable part of our daily lives.
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The comparative of study HUTCH & its competitor "It is my belief that the increasing pressures to maximize profit and efficiency should not compromise our respect for equality and our determination to minimize misery" Quotes by Mr. Li Ka-Shing Chairman, Hutchison Whampoa
Our goal is to provide you superior products and services, anytime and anywhere.
To be fair and transparent in what we do and how we do it. To provide you quality services with more customer friendly practices. To make your communications experience simple, pleasurable and fun. Where you don't simply get technology - but technology that is relevant. Where solutions are not just promised in the future – but delivered in
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The comparative of study HUTCH & its competitor
SAMPLING Sample method: stratified random sampling method Sample population: people from Belgaum city Sample unit: One of the units into which an aggregate is divided or regarded as divided for the purpose of sampling, each unit being regarded as individual and indivisible when the selection is made. The definition of unit may be made on some natural basis from example households, persons, units of product etc. Hence, in the study the sample unit is “Respondents who are Prepaid Hutch Subscribers�.
Sample size: 100 SOURCES OF DATA: Data, facts, figures, other relevant material of past and present and surveying are the basis for study and analysis. Without an analysis of factual data no specific inferences can be drawn on the questions under study. Inferences based on imagination or guesses cannot provide correct answer to research questions. The relevance adequacy and reliability of data determine the quality of the findings of a study. For the purpose of the present study, data from two sources has been collected namely primary and secondary data. Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor Primary Data: is source from which the researcher collects the data. It is a first hand data, which is used directly for the analysis purposes. Primary data always gives the researcher a fairer picture. In the present study primary data has been collected using questionnaires. For the purpose of collecting the same, 100 respondents have been randomly selected. Even the response of the respondents was taken into consideration. In this study, primary data plays a vital role for analysis, interpretation, conclusion and suggestions. Secondary Data: is data, which is collected and compiled for other purposes. Secondary data also plays a key factor in the in providing various other information which will influence the Analysis: Few of the main sources of secondary data include newspapers, business journals, magazines, Internet and company reports etc. SAMPLE DESIGN: A part of the population is known as sample. The process of drawing a sample from a large population is called sampling. The type of sample design used is Simple Random Sampling. Simple Random Sampling gives every unit of the population a known and non-zero probability of being selected. Since random sampling implies equal probability to every unit in the population, it is necessary that the selection of the sample must be free from human judgment. The sample design is formulated at Belgaum city only. TOOLS AND TECHNIQUES OF DATA COLLECTION The following sampling techniques have been implemented: Personal interviews Approaching people personally and interviewing directly. Questionnaires Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor Designing the questions in such a way that is covers various opinions, views about HUTCH & its competators subscribers at the present market conditions. The questionnaire consisted of various types of questions say Open-ended questionnaire, close ended or Dichotomous questions, Multiplechoice questions. FIELD WORK This project involved a fieldwork where in the survey is conducted by having a personal interaction with 100 subscribers who are HUTCH subscribers. Personal interaction has been carried out and the information sought as was required in the questionnaire for the purpose of data processing and analyzing. The respondents have been contacted directly.
LIMITATIONS OF THE STUDY The limitations of the study are as follows: Sample size of the subscriber is limited. Many subscribers do not give the exact picture of their opinion. The time period for conducting the survey is inadequate as the sample size covers only Belgaum city. One subscriber may have more than one connection. The opinion of the subscriber depends on the geographical location of the subscriber this may include the network of the provider. Since it’s a prepaid service it may be temporarily be used. Since most of the subscribers are teenagers it fails to give a general view of other age groups.
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The comparative of study HUTCH & its competitor
Chapter 3 Data Analysis Findings Recommendations Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor
ďƒź Conclusion
Data Analysis 1) Do you own cell phone? Frequency
Valid
Yes
100
Percent
100.0
Valid
Cumulative
Percent
Percent
100.0
100.0
Do you own cell phone ? 120
100
80
60
Percent
40
20 0 yes
Do you own cell phone ?
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The comparative of study HUTCH & its competitor The above graph shows that 100% respondents user of cell phone users
2) Which are the following operators you are connected
Hutch Airtel Bsnl Spice Reliance tata indicom Total
Frequency
Percent
Valid Percent
41 35 8 6 8 2 100
41.0 35.0 8.0 6.0 8.0 2.0 100.0
41.0 35.0 8.0 6.0 8.0 2.0 100.0
Cumulative Percent 41.0 76.0 84.0 90.0 98.0 100.0
Which are the following operators you are connected tata indicom reliance spice
bsnl
hutch
airtell
INTERPETATION: -The above graph shows that 41% respondents has Hutch operator connected, 35% respondents has Aer-tel operator connected, each 8% respondents has respectively BSNL & RIM operator connected, &
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The comparative of study HUTCH & its competitor respectively 6%&2% respondents has Spice & Tata-indicom operator connected, 3) How did you come to know about this operator? Frequency
Friend Relative Media News paper Holding boarding Others Total
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62 21 8 5 4 100
Percent
62.0 21.0 8.0 5.0 4.0 100.0
Valid
Cumulative
Percent
Percent
62.0 21.0 8.0 5.0 4.0 100.0
62.0 83.0 91.0 96.0 100.0
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The comparative of study HUTCH & its competitor
How diid you came to know about this operator 70 60 50 40 30
Percent
20 10 0 friend&Relative
New s paper media
others
HOlding&boarding
How diid you came to know about this operator
INTERPETATION: -From survey revel that 62% of the respondents come to know about the operator through their friend &relatives & remaining 38% of the respondents come to know about the operator through media, news paper, holding &bolding others. The operator should touch customer &provide effective service for the customer Respondents are highly influenced by their Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor social circle i e friends, family‌etc followed by the promotion done by the company and later the service parameters. 4) Which type of connection do you have? Frequency
Percent
Valid
Cumulativ e Percent 93.0 100.0
Prepaid
93
93.0
Percent 93.0
Postpaid Total
7 100
7.0 100.0
7.0 100.0
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The comparative of study HUTCH & its competitor
Which type of coonnetion do you have postpaid
prepaid
INTERPETATION: -According through a survey 93% of the respondents are pre-paid service users & 7% of the respondents are post-paid service users Respondents are more interested to use prepaid services than postpaid services Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor The mobile service should emphasis on post-paid customers to provide the promotion to attract the post-paid customers
5) Reason for selecting the operator?
Price
27
Coverage
67
Traiff/ scheem
27
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Availability
21
Easy documentation Process
18
Advertisement
21
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Experience
19
The comparative of study HUTCH & its competitor
reason for select the operator 80 70 60 50 40 30 20 10 0
Series2 67 27
21
18
21
19
roc es ad ve rtis me nt Ex pe rie nc e
ab ility
um en tai on p
av il es y
do c
tra iff/ sc he em
co va r eg e
Pr ic
e
27
Series1
INTERPETATION: - Almost 67% of the respondent’s reason for selecting is to coverage; each 27% of the respondents reason for selecting is to price& new scheme each 21% of the respondents reason for selecting is to easy availability, advertisement &19&18% Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor Of the respondents reason for selecting is to good experience of existing customer Easy documentation
6) If given a chance to you which operator do you prepare?
Hutch Air tel Bsnl Spice Reliance Tata Indicom Total
Frequen cy 14 31 19 6 27 3 100
Percent 14.0 31.0 19.0 6.0 27.0 3.0 100.0
Valid Percent 14.0 31.0 19.0 6.0 27.0 3.0 100.0
Cumulative Percent 14.0 45.0 64.0 70.0 97.0 100.0
If given a chance to you which operator do you prepare 40
30
20
Percent
10
0 hutch
airtell
bsnl
spice
reliance
tata indicom
If given a chance to you which operator do you prepare
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The comparative of study HUTCH & its competitor INTERPETATION: - According trough this survey reveled that following steps 31% of the respondents want to shift Airtel operator, 27% of the respondents want to shift RIM, 19% of the respondents want to shift BSNL, 14% of the respondents want to shift Hutch, 6% of the respondents want to shift Spice and 3% of the respondents want to shift Tata-indicom The network coverage of HUTCH is not all that competitive compared to AIRTEL. Hence there is only a 17% difference between the respondents who have rated ‘Good’ and ‘Fair’.
7) Tick the pricing strategy of a) Hutch
Very high High Medium Low Very low Total
Frequency
Percent
Valid Percent
4
4.0
4.0
6 67 19 4 100
6.0 67.0 19.0 4.0 100.0
6.0 67.0 19.0 4.0 100.0
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Cumulati ve Percent 4.0 10.0 77.0 96.0 100.0
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The comparative of study HUTCH & its competitor
tick the pricing strategy of a)Hutch very low low
very high high
medium
INTERPETATION: - The above graph shows Pricing Strategy of HUTCH 67% of the respondents said that pricing of hutch is medium 19% of the respondents said that pricing of hutch is low 6% of the respondents said that pricing of hutch is high Each 4% of the respondents said that pricing of hutch is very high &very low The “Tariffs” is the Unique Selling Proposition for Hutch followed by “Others”
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The comparative of study HUTCH & its competitor
b) Airtel
Very high High Medium Low Very low Total
Frequency
Percent
16 58 13 8 5 100
16.0 58.0 13.0 8.0 5.0 100.0
Valid Percent 16.0 58.0 13.0 8.0 5.0 100.0
Cumulative Percent 16.0 74.0 87.0 95.0 100.0
tick the pricing strategy of b)airtel very low low medium very high
high
INTERPETATION: - The above graph shows Pricing Strategy of AIR-TEL 58% of the respondents said that pricing of Air-tel is high 16% of the respondents said that pricing of Air-tel is very high 13% of the respondents said that pricing of Air-tel is medium 8% of the respondents said that pricing of Air-tel is low 5% of the respondents said that pricing of Air-tel is very low Most of the respondents feel that pricing of Air-tel is high
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The comparative of study HUTCH & its competitor
c) BSNL Frequency
Percent 22.0 13.0 41.0
Valid Percent 22.0 13.0 41.0
Cumulative Percent 22.0 35.0 76.0
Very high High Medium
22 13 41
Low Very low Total
16 8 100
16.0 8.0 100.0
16.0 8.0 100.0
92.0 100.0
tick the pricing strategy of c)bsnl very low very high low
high
medium
INTERPETATION: - The above graph shows Pricing Strategy of BSNL 41% of the respondents said that pricing of BSNL is medium 22% of the respondents said that pricing of BSNL is very high 18% of the respondents said that pricing of BSNL is low 13% of the respondents said that pricing of BSNL is high 8% of the respondents said that pricing of BSNL is very
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The comparative of study HUTCH & its competitor d) Spice Frequency Mediu 73 m Low 15 Very 12 low Total 100
Percent 73.0
Valid Percent 73.0
Cumulative Percent 73.0
15.0 12.0
15.0 12.0
88.0 100.0
100.0
100.0
tick the pricing strategy of d)spice very low low
medium
INTERPETATION: - The above graph shows Pricing Strategy of SPICE 73% of the respondents said that pricing of Spice is medium 15% of the respondents said that pricing of Spice is low 12% of the respondents said that pricing of Spice is very low
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The comparative of study HUTCH & its competitor e) Rim
Medium Low Very low Total
Frequen cy 32 47 21 100
Percent 32.0 47.0 21.0 100.0
Valid Percent 32.0 47.0 21.0 100.0
Cumulativ e Percent 32.0 79.0 100.0
tick the pricing strategy of e)Rim very low
medium
low
INTERPETATION: - The above graph shows Pricing Strategy of RELIANCE 32% of the respondents said that pricing of Rim is medium 47% of the respondents said that pricing of Rim is low 11% of the respondents said that pricing of Rim is very low
f) Tata indicom Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor Frequency
Percent
Valid Percent
Cumulative Percent
Medium
57
57.0
57.0
57.0
Low
36
36.0
36.0
93.0
Very low
7
7.0
7.0
100.0
Total
100
100.0
100.0
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The comparative of study HUTCH & its competitor
tick the pricing strategy of f)Tata indicom very low
low medium
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The comparative of study HUTCH & its competitor
INTERPETATION: - The above graph shows Pricing Strategy of RELIANCE 32% of the respondents said that pricing of Rim is medium 47% of the respondents said that pricing of Rim is low 11% of the respondents said that pricing of Rim is very low
8) Have you switched between any operators? Frequency Yes No Total
33 67 100
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Percent 33.0 67.0 100.0
Valid Percent 33.0 67.0 100.0
Cumulative Percent 33.0 100.0
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The comparative of study HUTCH & its competitor
Have you switched between any operator 70 60 50 40 30
Percent
20 10 0 yes
no
Have you switched between any operator
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The comparative of study HUTCH & its competitor
Inference: 67% of the respondents did not switch their brands. 33% of the respondent switched their brand Most of the subscribers are loyal to their brand and therefore don’t switch their brands but we also have a small percentage of subscribers who switch their brands. 9) How many operator have you switched off in past
Not atall One time Two time Three time or more Total
Frequency
Percent
67 15 10 8
67.0 15.0 10.0 8.0
Valid Percent 67.0 15.0 10.0 8.0
100
100.0
100.0
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Cumulative Percent 67.0 82.0 92.0 100.0
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The comparative of study HUTCH & its competitor
How many operator have you switced off in past 80 70 60 50 40 30
Percent
20 10 0 Not atall
one time
tw o time
three time or more
How many operator have you switced off in past
Inference: 67% of the respondents not at all switched their brands Out of 33 respondents 15 respondent are switched their brands on one time Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor Out of 33 respondents 10 respondent are switched their brands on two times Most of the subscribers are loyal to their brand and therefore don’t switch their brands but we also have a small percentage of subscribers who switch their brands.
10) Reason for switching the operator?
Cost 0
Poor
Poor
network
service
30
27
Traiff/scheem
Others
30
3
Reason for switching
cost poor nwtwork poor service t raiff /scheem ot hers
Inference: Out of 33 respondents 8 respondents are switched there brands on three times Out of 33 respondents each 30 respondents said that reason for switching is because of
poor network & poor service
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The comparative of study HUTCH & its competitor Out of 33 respondents each 27 respondents said that reason for switching is because of new scheme Out of 33 respondents each 4 respondents said that reason for switching is because of other reason
11) How is the customer care service? a) Hutch
Excellent Good Fair Poor Very poor Total
Frequency
Percent
18 55 17 8 2
18.0 55.0 17.0 8.0 2.0
Valid Percent 18.0 55.0 17.0 8.0 2.0
100
100.0
100.0
Cumulative Percent 18.0 73.0 90.0 98.0 100.0
How is the customer careservice a)Hutch very poor poor fair Excellent
good
INTERPETATION Inference: HUTCH 18% of the respondents said that customer care of Hutch is excellent Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor 55% of the respondents said that customer care of Hutch is good 18% of the respondents said that customer care of Hutch is fair 8% of the respondents said that of customer care Hutch is low 2% of the respondents said that customer care of Hutch is very low
b) Airtel Frequency Percent
Valid Percent
Cumulativ e Percent
Excellent
22
22.0
22.0
22.0
Good Fair Poor Very poor
59 15 1 3
59.0 15.0 1.0 3.0
59.0 15.0 1.0 3.0
81.0 96.0 97.0 100.0
Total
100
100.0
100.0
How is the customer careserviceb)airtell very poor poor fair
Excellent
good
Inference: AIR-TEL 22% of the respondents said that of customer care Air-tel is excellent Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor 59% of the respondents said that customer care of Air-tel is good 15% of the respondents said that customer care of Air-tel is fair 1% of the respondents said that customer of care Air-tel is low 3% of the respondents said that of customer care Air-tel is very low
c) BSNL Frequen Percent cy Excelle 15 15.0 nt Good 39 39.0 Fair 16 16.0 Poor 28 28.0 Very 2 2.0 poor Total 100 100.0
Valid Percent 15.0
Cumulative Percent
39.0 16.0 28.0 2.0
54.0 70.0 98.0 100.0
15.0
100.0
How is the customer careservice c)Bsnl very poor Excellent
poor
good fair
Inference: BSNL 15% of the respondents said that of customer care BSNL is excellent 39% of the respondents said that of customer care BSNL is very good Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor 16% of the respondents said that of customer care BSNL is fair 28% of the respondents said that of customer care BSNL is low 2% of the respondents said that of customer care BSNL is very low
d) Spice Frequency
Percent
Valid Percent
Cumulative Percent
Excellent
10
10.0
10.0
10.0
Good Fair Poor Very poor
13 25 32 20
13.0 25.0 32.0 20.0
13.0 25.0 32.0 20.0
23.0 48.0 80.0 100.0
Total
100
100.0
100.0
How is the customer careservice d)Spice
Excellent very poor good
poor
fair
Inference: SPICE 10% of the respondents said that customer care of Spice is excellent 13% of the respondents said that customer care of Spice is good Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor 25% of the respondents said that customer care of Spice is fair 32% of the respondents said that customer care of Spice is low 20% of the respondents said that customer care of is Spice very low e) Rim Frequency
Percent
Valid Percent
Cumulativ e Percent
Excellent
16
16.0
16.0
16.0
Good Fair Poor Very poor
20 24 28 12
20.0 24.0 28.0 12.0
20.0 24.0 28.0 12.0
36.0 60.0 88.0 100.0
Total
100
100.0
100.0
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The comparative of study HUTCH & its competitor
How is the customer careservice e)Rim
very poor
poor
Excellent
good
fair
Inference: 16% of the respondents said that customer care of Reliance is excellent 20% of the respondents said that customer care of Reliance good 24% of the respondents said that customer care of Reliance is fair Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor 28% of the respondents said that customer care of Reliance is low 12% of the respondents said that customer care of Reliance is very low
f) Tata indicom
Excellent Good Fair Poor Very poor Total
Frequency
Percent
8 22 28 29 13 100
8.0 22.0 28.0 29.0 13.0 100.0
Valid Percent 8.0 22.0 28.0 29.0 13.0 100.0
Cumulative Percent 8.0 30.0 58.0 87.0 100.0
How is the customer careservicef)Tata indicom
very poor
Excellent
good
poor
fair
Inference: TATA-INDICOM 8% of the respondents said that customer care of Tata-Indicom is excellent 22% of the respondents said that customer care of Tata-Indicom is good 28% of the respondents said that customer care of m Tata-Indicom is fair
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The comparative of study HUTCH & its competitor 29% of the respondents said that customer care of Tata-Indicom is low 13% of the respondents said that of customer care Tata-Indicom is very low 12) Rank the following operators Frequency
Percent
Hutch Airtel BSNL Spice Reliance Tata indicom
34 38 12 6 7 3
34.0 38.0 12.0 6.0 7.0 3.0
Valid Percent 34.0 38.0 12.0 6.0 7.0 3.0
Total
100
100.0
100.0
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Cumulative Percent 34.0 72.0 84.0 90.0 97.0 100.0
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The comparative of study HUTCH & its competitor
Rank the following operators 50
40
30
Percent
20
10
0 hutch
airtell
bsnl
spice
reliance
tata indicom
Rank the following operators
Inference: 38%of the respondents recalled, Hutch first in brand sequencing 34% of the respondents recalled Airtel, first in brand sequencing Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor 12% of the respondents recalled BSNL, first in brand sequencing 8% of the respondents recalled RIM, first in brand sequencing More talk time 67
Unlimited sms 83
Better Good service coverage 90
93
Price
Others
36
21
6% of the respondents recalled Spice, first in brand sequencing 2% of the respondents recalled Tataindicom, first in brand sequencing
13) What do you from expect from your present mobile service providers?
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The comparative of study HUTCH & its competitor
100 90 80 70 60 Series2
50
Series1 40 30 20 10 0 More talk time
good service
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price
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The comparative of study HUTCH & its competitor Inference: 93% respondents expecting while taking any operator service good network & 67%respondents referring more talk time & 83% respondents referring unlimited SMS 36% respondents referring attractive pricing strategy.
FINDINGS According through survey 100% of the respondents using cell phone According to through survey 41% Respondents using HUTCH operator and 35% of the Respondents are using AIRTEL operator and each 8% of the Respondent using respectively B.S.N.L & RIM and 6% of the Respondents are using SPICE & remaining 2% of the Respondents are using TATA INDICOM 62% of the Respondents said that they come to about operator trough their friend and relative and 21% of the Respondents said that they come to about operator trough the Media and 8% of the Respondents said that they come to about operator trough the and 5% Respondents said that they come to about operator trough the advertisements & 4% of the respondents said that the come to know about the operator through others. 93% of the respondents have connected pre-paid operator & remaining 7% of the respondents have connected post-paid. 31% of the respondents want to shift Airtel operator, 27% of the respondents want to shift RIM, 19% of the respondents want to shift BSNL,
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The comparative of study HUTCH & its competitor 14% of the respondents want to shift Hutch, 6% of the respondents want to shift Spice and 3% of the respondents want to shift Tata indicom. 67% of the respondents said that the reason for selecting other operator is the coverage 27% of the respondents said that the reason for selecting other operator is the price and 24% of the respondents said that the reason for selecting other operator is the advertisement, each 21% of the respondents said that the reason for selecting other operator is the easy documentation & scheme \ tariffs
19% of the respondents said that the reason for selecting other
operator is the good past experience of existing customer.
Pricing Strategy Of Mobile Service Provider HUTCH 67% of the respondents said that pricing of hutch is medium 19% of the respondents said that pricing of hutch is low 6% of the respondents said that pricing of hutch is high Each 4% of the respondents said that pricing of hutch is very high &very low AIR-TEL 58% of the respondents said that pricing of Air-tel is high 16% of the respondents said that pricing of Air-tel is very high 13% of the respondents said that pricing of Air-tel is medium 8% of the respondents said that pricing of Air-tel is low 5% of the respondents said that pricing of Air-tel is very low BSNL 41% of the respondents said that pricing of BSNL is medium 22% of the respondents said that pricing of BSNL is very high 18% of the respondents said that pricing of BSNL is low Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor 13% of the respondents said that pricing of BSNL is high 8% of the respondents said that pricing of BSNL is very low SPICE 73% of the respondents said that pricing of Spice is medium 15% of the respondents said that pricing of Spice is low 12% of the respondents said that pricing of Spice is very low RELIANCE 32% of the respondents said that pricing of Rim is medium 47% of the respondents said that pricing of Rim is low 11% of the respondents said that pricing of Rim is very low TATA-INDICOM 57% of the respondents said that pricing of Tata-indicom is medium 36% of the respondents said that pricing of Tata-indicom is low 7% respondents said that pricing of Tata-indicom is very low 67% of the respondents did not switch their brands. 33% of the respondent switched their brands
Reason for Switching Out of 33 respondents 15 respondent are switched their brands on one time Out of 33 respondents 10 respondent are switched their brands on two times Out of 33 respondents 8 respondents are switched there brands on three times Out of 33 respondents each 30 respondents said that reason for switching is because of
poor network & poor service
Out of 33 respondents each 27 respondents said that reason for switching is because of new scheme Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor Out of 33 respondents each 4 respondents said that reason for switching is because of other reason
HUTCH 18% of the respondents said that customer care of Hutch is excellent 55% of the respondents said that customer care of Hutch is good 18% of the respondents said that customer care of Hutch is fair 8% of the respondents said that of customer care Hutch is low 2% of the respondents said that customer care of Hutch is very low AIR-TEL 22% of the respondents said that of customer care Air-tel is excellent 59% of the respondents said that customer care of Air-tel is good 15% of the respondents said that customer care of Air-tel is fair 1% of the respondents said that customer of care Air-tel is low 3% of the respondents said that of customer care Air-tel is very low BSNL 15% of the respondents said that of customer care BSNL is excellent 39% of the respondents said that of customer care BSNL is very good 16% of the respondents said that of customer care BSNL is fair 28% of the respondents said that of customer care BSNL is low 2% of the respondents said that of customer care BSNL is very low SPICE 10% of the respondents said that customer care of Spice is excellent 13% of the respondents said that customer care of Spice is good 25% of the respondents said that customer care of Spice is fair 32% of the respondents said that customer care of Spice is low 20% of the respondents said that customer care of is Spice very low Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor RELIANCE 16% of the respondents said that customer care of Reliance is excellent 20% of the respondents said that customer care of Reliance good 24% of the respondents said that customer care of Reliance is fair 28% of the respondents said that customer care of Reliance is low 12% of the respondents said that customer care of Reliance is very low
TATA-INDICOM 8% of the respondents said that customer care of Tata-Indicom is excellent 22% of the respondents said that customer care of Tata-Indicom is good 28% of the respondents said that customer care of m Tata-Indicom is fair 29% of the respondents said that customer care of Tata-Indicom is low 13% of the respondents said that of customer care Tata-Indicom is very low
Rating of mobile service provider
38%of the respondents recalled, first in brand sequencing 34% of the respondents recalled Aortal, first in brand sequencing 12% of the respondents recalled BSNL, first in brand sequencing 8% of the respondents recalled RIM, first in brand sequencing 6% of the respondents recalled Spice, first in brand sequencing 2% of the respondents recalled Tataindicom, first in brand sequencing
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The comparative of study HUTCH & its competitor 93% respondents expecting while taking any operator service good network & 67%respondents referring more talk time & 83% respondents referring unlimited SMS 36% respondents referring attractive pricing strategy.
SWOT ANALYSIS Strengths Fastest growing mobile market in the world Consumers are ready to pay for cutting-edge services Providing Value Added Services Unified license regime Weaknesses Market strongly regulated by Government body – Governing Telecom sectors Too many authorities ruling the sector Lack of consistency in the service Competition from technologies like CDMA Lack of customer loyalty as Prepaid connections are more Babasabpatilfreepptmba.com
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The comparative of study HUTCH & its competitor
Opportunities To offer value added services on GSM, CDMA Language independent services Potential for Mobile Marketing Potential for M-Commerce Unified messaging platforms Huge potential for untapped female market
Threats Low cost service providers- no possibility of breaking even in short term Cutting-Edge Technologies Entrant of new Competitors Political instability in policies Regulatory interference
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The comparative of study HUTCH & its competitor
SUGGESTIONS SUGGESTIONS TO HUTCH TO IMPROVE ITS SERVICE HUTCH is providing a very good service to its customers and it is one of the best service providers for telecommunication, it has to make use of its resources optimally. In addition to implementing the suggestions given by various customers HUTCH should follow the following steps to maximize profits, by means of customer satisfaction in a cost effective manner. Respondents suggest that the over all service is not satisfactory and not meeting the customer expectations or the satisfaction level. Network has been a key factor for customer dissatisfaction; majority of the respondents suggested to increase the number of network towers, widens the coverage area and reduces network congestion. The tariffs have to be consistent for quite some time in order to avoid the confusion among the subscribers.
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The comparative of study HUTCH & its competitor More accessible contact numbers for Customer care (increase number of lines) and promote them in order to make the user aware of the facility. Provide subsidized rates for calling or messaging to one or few number of our choice. Providing free messaging. Have Good plan, schemes, and packages in order to provide the customer with a wide choice.Keep the subscriber well informed about any deductions or any change in the plan and provide value for what the customer is paying for.Customer grievances should be dealt more seriously and action has to be taken.
CONCLUSION Going mobile is the craze today!! Now buying mobile is not a rich man’s possession any more. The mobile industry is on whopping high. With various technologies creeping in every day you always are on a back seat to keep your self updated. With a major chunk of the users being teenagers it makes the situation more dynamic and helps to create a niche market in itself. Looking at the industry trends in mobile segment, the growth is tremendous. Various cellular providers try to be innovative in providing value added services to the subscribers. If the demand is rising in same pace then it is for sure that the subscriber base of the mobile users will definitely exceed the limit of the landline subscribers. This report helps in knowing that the comparative study between HUTCH & its competitor. With this report the company can capture its
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The comparative of study HUTCH & its competitor loopholes or weaknesses and convert them in to their strengths and opportunities. From the above study we come to a conclusion that in case of parameters of selection, customer or the subscriber will first look at the network coverage, tariffs and then other parameters. The Subscriber also expects the company to give in detail information of the service they are availing. An effective sales person has to be employed in order to influence the buyer decision. The company should have exciting offers with the service they provide. The basic necessity of a mobile for the subscribers is not well defined.
Questionnaires
1. Do you own cell phone? a) Yes
b) No
2.which are the following operators you are connected a) Hutch
b) Airtel
d) Spice
e) Reliance
c) BSNL
f) TataIndicom
3.How did you come to know about this operator?
a) Executive
b) Friends
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c) Media
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The comparative of study HUTCH & its competitor d) Newspaper
e) Pamphlet
f) Others
4. Which type of connections do you have?
a) Prepaid
b) Postpaid
Why did you prefer this connection? ____________________________________________________________ ____________________________________________________________ __________________ 6. If given chance to you, which operator do you prefer? a) Hutch
d) Spice
b) Airtel
e) Reliance
c) BSNL
f) Tata Indicom
7. What are the reasons for selecting above operator? a) Price
b) Coverage
d) Easily Availability
f) Advertisement
c) Tariff / Scheme
e) Easily document Process
g) Good past experience of existing
customers 8. Please tick the following w.r.t to pricing strategy of the following operating
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The comparative of study HUTCH & its competitor Cell
phone
Very
service provider Hutch Airtel B.S.N.L Spice
high
High
Medium
Low
Very low
Tata indicom Reliance
9. Have you switched between any operators
Yes
b) No
How many operators have you switched off in past? a) Not at all
b) onetime
d) Two time
d) More than 2time
11.Reson for switching
a) Cost
c) Poor service
b) Poor network
d) New schemes
e) others
12 How is the customer care service of following operator?
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The comparative of study HUTCH & its competitor Service
Excellent
Good
Fair
Poor
Very poor
provider Hutch Airtel B.S.N.L Spice Tata indicom Reliance
13.Rank the following service operator (1 being highest
& 6 is the
lowest) a) Hutch
b) Airtel
d) Spice
e) Tata indicom
c) B.S.N.L
f) Reliance
14.What do you from expect from your present mobile service providers? a) More talk time
c) MMS
b) Un limited sms
d) Good service
e) Low cost
15.Any suggestion to improvement.
16.NAMEADRESS
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The comparative of study HUTCH & its competitor CITY
OCCUPATION
AGE
GENDER:
PHONE NO
Male
F/ Male
BIBLIOGRAPHY
PORTALS / WEBSITES www.hutch.co.in www.orange.co.in www.hutchison-whampoa.com
BUSINESS JOURNALS Business World Business Today NEWSPAPERS Times Of India Economic Times Business Standard
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