“EVALUATION OF PRICING STRATEGIES IN TELECOM SERVICES WITH SPECIAL REFERENCE TO MOBILE SERVICES”
Dissertation submitted in partial fulfillment of the requirements Of MASTER OF BUSINESS ADMINISTRATION Bangalore University
COLLEGE CERTIFICATE This is to certify that Mr. PATOLIYA SACHIN P. Reg. No. 08 JQCM 6064 has completed and submitted the Dissertation report, titled “EVALUATION OF PRICING STRATEGIES IN TELECOM SERVICES WITH SPECIAL REFERENCE TO MOBILE SERVICES” under the guidance of Prof. ANJU KUMAR in partial fulfillment of the requirement of MBA of Bangalore University.
STUDENT DECLARATION I, PATOLIYA SACHIN P, Register Number 08JQCM 6064 student of City College, Bangalore studying in fourth semester; here by declare that this Dissertation entitled “EVALUATION OF PRICING STRATEGIES IN TELECOM SERVICES WITH SPECIAL REFERENCE TO MOBILE SERVICES” has been prepared by me in partial fulfillment for the award of MBA Degree of Bangalore University. This has not been submitted in part or full towards any other Degree or Diploma to any University or Institution. I also declare that all information, data and input which I have used and referred to in this report are meant only for academic purpose and will not be parted with or used for any commercial or other purpose.
Date: 05/05/2010 Place: Bangalore 6064
PATOLIYA SACHIN P. Reg. No: 08 JQCM
GUIDE CERTIFICATE Certified that this dissertation entitled “EVALUATION OF PRICING STRATEGIES IN TELECOM SERVICES WITH SPECIAL REFERENCE TO MOBILE SERVICES” submitted in partial fulfillment for the award of MBA Degree of Bangalore University was carried out by, PATOLIYA SACHIN P. Reg.No.08JQCM 6064 under my guidance. This has not been submitted to any other University or institution for the award of any degree/diploma/certificate
Date: 05/05/2010 Place: Bangalore
PROF. ANJU KUMAR
ACKNOWLEDGEMENT .
I am grateful to Dr.Vijayalakshmi, Principal, City College, Bangalore for permitting me to do this project. I express my deep sense of gratitude to our Director Dr.K.R.Mukunda, MBA, Director, Department of Management Studies, City College, Bangalore. I express my thanks to Prof. H.S.Murthy, MBA Head of the Department of Management Studies for his valuable support and guidance to complete my project in proper way. I wish to take this opportunity to express my gratitude to my guide Prof. ANJU KUMAR, Department of Management Studies, City College, Bangalore. I would like to convey my regards to our Lecturers for their cooperation and best guidance in carrying out the project work successfully. Finally it is my foremost duty to thank all my respondents who helped me to complete my fieldwork, without which this project would not have been possible.
Date: 05/05/2010
PATOLIYA SACHIN P.
Place: Bangalore
Reg. No: 08 JQCM 6064
CHAPTER No.
CONTENTS
I II III IV V
V.I V.II V.III
PAGE No.
Introduction Research Design Company Profile Analysis and
1 16 22
Interpretation Findings Suggestions Conclusion Bibliography Annexure
38 73 74 75 77 78
LIST OF TABLE Serial No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
CONTENTS 4.1
The age group of respondents
4.2
The occupation of respondents
4.3
The Brand of Cellular Phones used
4.4
Types of services that are subscribed
4.5
The schemes that are used
4.6
Prepaid /Postpaid scheme used in Vodafone
4.7
Prepaid /Postpaid scheme used in Airtel
4.8
Prepaid /Postpaid scheme used in Reliance
4.9
The call cost of the service
4.10
The present network of mobile phone service
4.11
The nature of the customer care service
4.12
The number of customer browsing GPRS
4.13
The users using plan for Browsing
4.14
The download speed for Browsing
4.15
The types of download by users
4.16
The opinion about sound clarity
4.17
The users response level with the mobile
3.1
Vodafone Financial Statement
3.2
Airtel Financial Statement
3.3
Reliance Financial Statement
PAGE No. 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 78 78 79
LIST OF CHARTS Serial
CONTENTS
PAGE
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
3.1
Organization Chart of Vodafone Company
3.2
Organization Chart of Airtel Company
3.3
Organization Chart of Reliance Company
4.1
The age group of respondents
4.2
The occupation of respondents
4.3
The Brand of Cellular Phones used
4.4
Types of services that are subscribed
4.5
The schemes that are used
4.6
Prepaid /Postpaid scheme used in Vodafone
4.7
Prepaid /Postpaid scheme used in Airtel
4.8
Prepaid /Postpaid scheme used in Reliance
4.9
The call cost of the service
4.10
The present network of mobile phone service
4.11
The nature of the customer care service
4.12
The number of customer browsing GPRS
4.13
The users using plan for Browsing
4.14
The download speed for Browsing
4.15
The types of download by users
4.16
The opinion about sound clarity
4.17
The users response level with the mobile
No. 22 27 32 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72
LIST OF ABBREVIATIONS ABBREVIATION TRAI
MEANING Telecom Regulatory Authority of India
TDSAT
Telecom Dispute Settlement and Appellate Tribunal
GSM
Global System Mobile
CDMA
Code Division Multiple Accesses
WLL
Wireless Local Loop
IT
Information Technology
IFRS
International Financial Reporting Standards
DTH
Direct to Home
GDP
Gross Domestic Product
CHAPTER I INTRODUCTION
CHAPTER I Introduction Pricing strategy is one of the important issues in telecom industry for each player. Being a conjunctive focus between users and service provider,
carrier's pricing strategy takes an outstanding role in telecom chain. Pricing strategies comparing three companies namely Vodafone, Airtel and Reliance. Pricing is a fundamental aspect of financial modeling, and is one of the four Ps of the marketing mix. The other three aspects are product, promotion, and place. It is also a key variable in microeconomic price allocation theory. Price is the only revenue generating element amongst the four Ps, the rest being cost centers. Pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others. Automated systems require more setup and maintenance but may prevent pricing errors. Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, Quality of product. The effective price is the price the company receives after accounting for discounts, promotions, and other incentives.
Price lining Price lining is the use of a limited number of prices for all your product offerings.
Promotional price Promotional pricing refers to an instance where pricing is the key element of the marketing mix. The price/quality relationship refers to the perception by most consumers that a relatively high price is a sign of good quality. The belief in
this relationship is most important with complex products that are hard to test, and experiential products that cannot be tested until used (such as most services). The greater the uncertainty surrounding a product, the more consumers depend on the price/quality hypothesis and the more of a premium they are prepared to pay. The classic example of this is the pricing of the snack cake britannia, which were perceived as low quality when the price was lowered. Note, however, that excessive reliance on the price/quantity relationship by consumers may lead to the raising of prices on all products and services, even those of low quality, which in turn causes the price/quality relationship to no longer apply.
Premium price Premium pricing (also called prestige pricing) is the strategy of consistently pricing at, or near, the high end of the possible price range to help attract status-conscious consumers. A few examples of companies which partake in premium pricing in the marketplace include Rolex and Bentley. People will buy a premium priced product because: 1. They believe the high price is an indication of good quality; 2. They believe it to be a sign of self worth - "They are worth it" - It authenticates their success and status - It is a signal to others that they are a member of an exclusive group; 3. They require flawless performance in this application - The cost of product malfunction is too high to buy anything but the best example: heart pacemaker. The term Goldilocks pricing is commonly used to describe the practice of providing a "gold-plated" version of a product at a premium price in order to make the next-lower priced option look more reasonably priced; for example, encouraging customers to see business-class airline seats as
good value for money by offering an even higher priced first-class option. Similarly, third-class railway carriages in Victorian England are said to have been built without windows, not so much to punish third-class customers (for which there was no economic incentive), as to motivate those who could afford second-class seats to pay for them instead of taking the cheaper option. This is also known as a potential result of price discrimination. The name derives from the Goldilocks story, in which Goldilocks chose neither the hottest nor the coldest porridge, but instead the one that was "just right". More technically, this form of pricing exploits the general cognitive bias of aversion to extremes. This practice is known academically as "framing". By providing three options (i.e. small, medium, and large; first, business, and coach classes) you can manipulate the consumer into choosing the middle choice and thus, the middle choice should yield the most profit to the seller, since it is the most chosen option.
Demand based price Demand-based pricing is any pricing method that uses consumer demand - based on perceived value - as the central element. These include : price skimming, price discrimination and yield management, price points, psychological pricing, bundle pricing, penetration pricing, price lining, value-based pricing, geo and premium pricing. Pricing factors are manufacturing cost, market place, competition, market condition, quality of product.
Multidimensional price Multidimensional pricing is the pricing of a product or service using multiple numbers. In this practice, price no longer consists of a single monetary amount (e.g., sticker price of a car), but rather consists of various
dimensions (e.g., monthly payments, number of payments, and a down payment). Research has shown that this practice can significantly influence consumers' ability to understand and process price information.
Pricing Strategies Price planning that takes into view factors such as a firm's overall marketing objectives, consumer demand, product attributes, competitors' pricing, and market and economic trends. Pricing strategy is one of the important issues in telecom industry for each player in the tri-game model. Being a conjunctive focus between users and service provider, carrier's pricing strategy takes an outstanding role in telecom chain. Marketing Mix (Seven P’s): Product
→
Solution
Promotion
→
Information
Price
→
Value
Placement
→
Access
Process
→
Delivered
Physical Evidence →
Tangible evidence
People
Dealing
→
Pricing Strategies: →
Premium Pricing, Penetration Pricing
→
Economy Pricing, Value Pricing
→
Price Skimming, Promotional Pricing
→
Psychological Pricing, Geographical Pricing
Low
Quality
High
Low
Economy
Penetration
Skimming
Premium
Price High
Pricing Strategies Matrix
Background of the study Indian telecom sector is one of the oldest and largest networks in the world. With more than 40 million telephone lines spread across all the states Indian telecom is a giant setup. The sector that was tilled recently dominated only by the government is now seeing the rise of the private service provider for the first time. The sector was one of the biggest monopolies in the country. The Indian telecom sector consists of the communication ministry at the top. There is an autonomous regulatory body called the Telecom Regulatory Authority of India (TRAI). The government issues the licenses to service provide under various categories to provide the telecom services to the consumer.
The Structure of Indian Telecom Industry
Ministry of Communication
BSNL /MTNL Government
Department of Telecom
TRAI Regulator
Basic Telecom Service
Other Service Provider
Cellular Service Provider
Major Telecom Services The major telecom services available in the country are classified as given. Fixed land line or Basic Services Cellular Services National Long Distance Services Internet and Data Services Paging Services Satellite Telephony
Brief History Over 150 years ago a new industry began in India that transformed the country forever. It was the beginning of the telegraph industry in India. This
was followed few years later by the launch of telephone services in country. It is important to note the fact that the Indian telecom was entirely in the hands of private sector till all the operators were taken over by the government in 1943. India has less than subscribers at the time of independence. In 1997 government passed the TRAI Act and it was amended in the year 2000 to recognize and strengthen the regulator. A new body called TDSAT (Telecom Dispute Settlement and Appellate Tribunal) was also constituted to resolve any dispute between the services provider and the government. The government decision to liberalize the sector way back in 1999 has made it an exciting one. India today has 40million fixed telephone lines and 14 million mobile phone users.
Geography of Indian Telecom The entire country was divided in to different circles for ease of administration. In majority of the case the boundaries of circle and states were the same. The government used the same circle for allocation of license to the private services providers. The licenses were issued according to the circle. An unlimited number of private players have been allowed in each circle. There are a total of 24 telecom circle in the country. However for private services providers the license was issued only for 21 circles.
History of Telecom Were Alexander Graham Bell to be here today, he would be one proud man. When he invented the telephone, Bell summed up his approach to life and invention. “Leave the beaten track occasionally and dive into the woods. Every time you do so you will be certain to find something that you have never seen before. Follow it up, explore all around it, and before you know it, you will have something about occupies your mind. All really big
discoveries are the result through”. It has been said that Bell invented by searching for it in places were other inventors would never think to look. It was Bell ability to believe in the impossible that gave world one of most important inventions. It was on Sunday June 25, 1876, in Philadelphia, when Bell demonstrated his new invention at the centennial exhibition. The exhibition was organized to celebrate the 100th anniversary of the singing of the declaration of independence. The telephone was its star attraction. It was here that the first word crackling over the telephone wire. Pandemonium broke out as scientists raced to see if Bell voice another room indeed produced the sounds. It is believed that shortly after the telephone invention, Bell wrote to his father,” The day is coming when telegraph wires will lie onto houses just like water or gas, and friends will converse with each other without leaving home”. Bell certainly had no doubts about the importance of his new invention, but would he ever have imagined telephone lines being used to transmit video images? Since his death in 1992, the telecommunication has undergone an amazing revolution. Bell’s ‘Electrical speech machine’ has paved the way for the information superhighway.
Mobile Services Cellular services operations made their debut in India in the year 1995 – 96. License in the metros began their operations and 15 other were given license to provide services in 18 circles. Modi Telstra in Calcutta was the first to start, followed by Bharti cellular in Delhi. Delhi had the largest number of subscribers during this period and Bharti had the lead in this market.
Industry Profile
Communication is believed to be one of the most crucial factors in the evolution of mankind. It was only after groups of people settled in various parts of the globe started interacting with each other that ideas and more importantly, knowledge began to be exchanged. In the modern world too a strong communication system is perhaps the first visible symbol of enhanced awareness and therefore, development. The oldest telecommunication’s service in India is the telegraph services, which was introduced in 1851.
Mobile A mobile or cellular phone as it is generally called, is a two way communication device, which enable us to receive as well as transmit vocal (conversational or telephonic) message anywhere or anytime however the clause anywhere and anytime depend upon a particular services provider network. The governments of India recognized that the provision of a world class telecommunication infrastructure and information is the key to rapid economic and social development of the country. It is critical not only for the development of the information technology industry, but also widespread ramification on the entire economy in the country. It is also anticipated the going forward, a major part of the GDP of the country would be contributed by this sector. Accordingly, it is of vital importance to the country that there are a comprehensive and forward looking telecommunication policy which creates an enabling framework for development of this industry.
Mobile Phone Network
Call from the Mobile phone to Network
Reception and Transmission Tower
Reception and Transmission Tower
To Another Mobile
Mobile Switching Center
The DOT Exchange
To Another Cellular Network
Vodafone Vodafone (Hutch) is brought to you by Hutchisson telecom, on of the world’s leading cellular services providers. Vodafone chairman is a Sir John Bond. And market capital is a 1, 26,920 million pound. We are known for our innovation approach and world class technology. Our goal is to provide you superior product and services, anytime and anywhere. Hutchisson established its presence in India in 1994, through a joint venture with max India Ltd. In 1995, Hutchisson max telecoms become the first operator in India to launch its cellular services. Today, Hutchisson is one of the largest providers of cellular services in India with presence in the entire major region orange in Mumbai and Vodafone in Gujarat, Calcutta, Andhra Pradesh, Karnataka, Delhi and Chennai. It is also the country’s largest roaming operator, with a more extensive network in India and around the world than any other operator.
It is part of the Hong Kong based multinational conglomerate Hutchisson Whampoa limited, a fortune 500 company and one of the largest company listed on the Hong Kong Stock Exchange. Its operations span 36 countries across the Asia pacific region Europe and the Americas. Hutch in now Vodafone but for this project report we consider name as Hutch only comfort for the respondent. Vodafone using technology is only for GSM. Features Highly satisfied customers Strong Network Coverage Easy Billing, Easy Payment Options. Anytime Anywhere Long Distance Calling Facility Credit limit GPRS - Roaming
Airtel Airtel comes to you from Bharti Cellular Limited. A part of the biggest private integrated telecom conglomerate Bharti Enterprises. Airtel chairman is a Mr. Sunil Mittal. And market capital is an Rs.1, 06,038 crores. Airtel launched its services in Delhi on November 14, 1995. It has present over six lakh fifty thousand customers in its six year of pursuit of grater customer satisfaction. Airtel has redefined the business through marketing innovations continuous technological up gradation of the network introduction of new generation value added services and the highest standard of customer care. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunication with it is world class product and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti provides a range
of telecom services. Which include cellular, basic, internet and recently introduced National Long Distance? It has over one million satisfied customers. Technology is using for the GSM and WLL. Features Largest numbers of customer base Easy Payment Options, Anytime Anywhere Credit limit, Best Value Plan Strong Network Coverage Long Distance Calling Facility Widest Roaming - National and International, GPRS Roaming Say it. In more than just words, with Services from Airtel Reach us, Anytime Anywhere
Reliance Dhirubhai Ambani had dreams to place the power of information and communication technology in the hands of the common man to change the way Indian communicates and connect with the world. Reliance communication is run by Anil Dhirubhai ambani Group. And market capital is an Rs.3, 21,395 crores. Reliance infocom is recommitted to make that dream come true. This is a built a state of the art infrastructure cutting across the length and breadth of India. It is offer multiple services in the fixed line as well as mobile space, voice, data and value added services. Dhirubhai was not just firmly rooted in tradition Indian values but was also a quintessential modern man the man of the new millennium. This was clearly reflected in his passion for mega sized projects. The most advanced technology the highest level of productivity.
The corporate philosophy he followed was short simple and succinct “Think big. Think differently. Think fast. Think ahead. Aim for the best”. He inspired the reliance team to do better than best not only in India but also in the world. Dhirubhai Ambani, founder’s chairman of the Reliance Group had an acute sense that education alone empowers people. He was a grater communicator. He communicated to inspire, to guide, to educate and to motivate. He employed telephone as a powerful tool to achieve these goals. He used telephone to defect distance to compare time and to remain abreast of events. He was acutely aware of the power of information and communications. With mobile devices net ways and broadband system linked to powerful digital networks, Reliance infocom usher fundamental changes in the social and economic landscape of India. Technology using is a CDMA, GSM, and WLL Nokia and Reliance Communications Ltd have joined hands to market.
Reliance Comm. forays into video conferencing
Reliance Communications rolled out a range of mobile handsets Priced at between Rs. 777 and Rs. 888, sharing by half to one-third the existing entry level mobility costs in the country. Reliance Communications Ltd has informed that the Board of Directors of the Company at its meeting held on July 17, 2007, has appointed Shri. A K Purwar, former Chairman of State Bank of India, as Director of the Company with effect from July 17, 2007. Reliance Communications Ltd has launched Money Transfer through Mobile phones across the country through it's tie-up with ICICI Bank. Features
Wide Rang mobile phone CDMA, GSM, and WLL Technology Cheapest calling rate Widely establish network Largest numbers of customer base Easy Payment Options, Anytime Anywhere
Technology CDMA CDMA Stands for Code Division Multiple Accesses. Both data and voice are separated from signals using codes and then transmitted using a wide frequency range. Because of this, there are more space left for data transfer (this was one of the reasons why CDMA is the preferred technology for the 3G generation, which is broadband access and the use of big multimedia messages). 14% of the worldwide market goes to CDMA. For the 3G generation CDMA uses 1x EV-DO and EV-DV. It has a lot of users in Asia, especially in South Korea. GSM GSM stands for Global System Mobile. Even though it is sold as "the latest technology" in several countries, this technology is older than CDMA (and also TDMA). But keep in mind that this doesn't mean that GSM is inferior or worse than CDMA. Roaming readiness and fraud prevention are two major advantages from this technology. GSM is the most used cell phone technology in the world, with 73% of the worldwide market. It has a very strong presence in Europe.
WLL WLL (wireless local loop) technology is poised for greatness. While the WLL market has fallen behind the mobile wireless market for now, improvements in 3G technologies will create a major market for fixed WLL systems by 2006. In addition to cellular and PCS LMDS and MMDS will become key technologies to deliver voice video and data services to underserved markets.
CHAPTER II RESEARCH DESIGN
CHAPTER II Research Design This chapter briefly describe the design of the study, beginning from the title of the study and goes on to explain the objective, scope of the study, methodology, sampling, field work, analysis and finally the limitation of the study.
Meaning of the Research Design Research design is the arrangement of condition and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In other words it is a logical and systematic plan prepared for directing a research study. It specifies the objective of the
study, the methodology and the techniques to be adopted for achieving the objectives.
Nature of Research Design A research design is indispensable for a research project unlike the building plan which is precise and specific. Research design is a tentative plan with series of guide posts to keep one going on in a right direction. It undergoes modifications, as circumstances demand when the study progresses. New aspects, new conditions and new relationship come to light when the study deepens. A research is purely and simply the frame work or plan for a study that guides the collection and analysis of the data. It is a blue print that is followed in completing a study. The study must be relevant to the problem. The study must employ economical procedures. The design of investigation should stem for the problem. The basic research designs are whether the design is productive in given problem setting depends on how imaginatively they are applied. An understanding of the basic design is needed so that they can be modified to suit specific purpose.
Statement of the problem Today is the world of inventions and innovations and that lies in a customer who is dynamic in his beliefs, attitude and his satisfaction level. It is needless to affirm that marketing is a new way of thinking about how companies and other organization can develop beneficial change with target customer who is always inclined in seeking to satisfy some needs and wants. Hence the problem is how we can find more customers for what services we
provide, how the company can live up to their expectations and understand the different aspects of the customer’s views.
Need for the study Cell phone has become a part of everyone’s life. In this study we try to understand Bangalore users who are using different services provided by the subscriber. So there is also needed to study. What services are provided by the various cellular services providers now a days and how they can provide better services to the subscribers. Understand different aspects of customer’s views and satisfactions. What new services are being provided by the various service providers?
Objectives of the study This study is to understand the services and pricing strategies in India. To find out the strengths and the weakness of pricing strategies in telecom service in India of the selected companies namely Vodafone, Airtel and Reliance. To study the present network of the mobile phone services provided at Bangalore and identify various complaint of the subscribers on various aspect like clarity, distribute and call cost, services charges. To study the level of customer satisfaction of the various users of services provider and to know which services provider has the maximum number of satisfied customers. To study the companies response to customer needs and wants. To suggest the measures for service improvement.
Scope of the study Today the telecommunications industry is undergoing a revolution. Many types of branded companies are entering in to this field. This has given rise to the opening of the competitive mobile phone service stations like Airtel, Vodafone, and Reliance infocom, Spice, BSNL and Tata indicom to offer the requisite services to the cellular users. With the study we can get some suggestions from subscribers for services improvements in terms of quality. In the study we can find out the level of customer satisfaction. We can also identify the causes for customer dissatisfaction like disturbance, call cost, more service charge and clarity of sound and delivery of the product.
Research Methodology Descriptive research design are determined for some definite purpose a number of research studies can be based on such design it is focused on accurate description of the variables present in the problem.
Source of data Secondary data Secondary data refers to that which has already been collected by someone. Secondary data for the study was collected from - Published literature - Brochures, Books - Internet Primary data
Primary data refers to collection of fresh data and recorded for the first time. The primary data for the study was collected through questionnaire. The various methods of collecting primary data is conducting surveys,
through
observation
or
through
direct
communication with respondents. - Questionnaire method
Sampling technique Convenience sampling technique
Sample size A total number of 100 respondent were included in the study of these most were software engineers of software companies and student and also the general public. Out of the sample collected the break up of the sample size was on the following parameters. The respondents were taken from all the kinds of class i.e. high, lower and middle classes. The respondents have been chosen on random basis. These respondents were the software engineers, businessman, government employees, students etc. Some were students of engineering college, management colleges and under graduate colleges. Also the opinion of local people had been taken. The sample size consists of 100 respondents.
Sample Frame
As Bangalore city is a metropolitan and its population is in millions and there are large number of sectors. The population universe in the city of Bangalore being vast in size, it was difficult to conduct 100 percent coverage of the study within the limited period. Hence the sample survey method is adopted for this study.
Analysis technique Analysis technique used here is questionnaire method, and tabulations method to be used etc. A Market analysis is a documented investigation of a Market that is used to inform a firm's planning activities particularly around decision of inventory, purchase, work force expansion/contraction, facility expansion, and purchases of capital equipment, promotional activities, and many other aspects of a company.
Limitation of the study The users of cellular phones are geographically wide spread and hence contacting all them might not happen in the given duration. The information collected may not be sufficient and reliable in terms of total market condition in India as Bangalore represents only a small portion of the total national market. Respondents may be inaccurate or biased. Research limited to Bangalore City only. Some of the organization respondents may not provide complete data. Possibility of error in data collection.
CHAPTER III
COMPANY PROFILE
CHAPTER III Vodafone Organization Chart
Vittorio colao CEO
Michel Combes CEO Europe Region
Nick Read CEO Asia Pacific East Region
Greece
China
United Kingdom
Egypt
Italy
Andy Halford CEO
Global Technology
Human Resource
Global Marketin g
Business Developm ent
India
Strategy Improvem ent
Germany
Group Legal
Chart No.3.1 Organization Chart of Vodafone Company
Vodafone
Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company now has operations across the country with over 94.14 million customers
Vodafone is the world's leading international mobile communications group with approximately 333 million proportionate customers as on 31 December 2009. Vodafone currently has equity interests in 31 countries across five continents and around 40 partner networks worldwide. Vodafone Group Plc (Vodafone) is engaged in providing service, such as voice, messaging, data and fixed line and others. Voice services include provision of mobile voice communications. Messaging include text, picture and video messaging using mobile devices. Date services provide e-mail, mobile connectivity and Internet on Your mobile. Fixed lines provide customers with fixed broadband and fixed voice and date solutions. Other services include mobile advertising and business managed services, as well as incoming roaming and wholesale mobile virtual network operators. On December 30, 2008, Vodacom Group (Pty) Limited (Vodacom) acquired the carrier services and business network solutions subsidiaries of Gateway Telecommunications SA (Pty) Ltd. In January 2009, Verizon Wireless completed its purchase of Alltel Corporation from Atlantis Holdings LLC. On April 20, 2009, the Company acquired an additional 15% stake in Vodacom. On May 18, 2009, Vodacom became a subsidiary of the Company.
Product Profile Products promoted by the Group include Vodafone live!, Vodafone Mobile Connect USB Modem, Vodafone Connect to Friends, Vodafone Passport, Vodafone Freedom Packs, Vodafone at Home, Vodafone 710 and Amobee Media Systems. Between June and August 2009, Vodafone
suspended roaming charges within 35 different countries, allowing their customers to take their standard UK price plan abroad. In October 2009, it launched Vodafone 360 a new internet service for the mobile, PC and Mac. On February 15, 2010 Vodafone launched world's cheapest mobile phone known as Vodafone 150, will sell for below $15 (ÂŁ10) and is aimed at the developing world. It will initially be launched in India, Turkey and eight African countries including Lesotho, Kenya and Ghana
Company Background Type
: - Limited
Founded
: - 1994 as Hutchison Essar
Headquarters
: - Mumbai, Maharashtra, (India)
Industry
: - Mobile telecommunications
Products
: - Mobile networks, Telecom services, Etc.
Owner(s)
: - Vodafone Group (67%), Essar Group (33%)
Employees
: - 10,000 – March 31, 2009
Website
: - www. Vodafone India.com
Company Vision To enrich our customer's lives through the unique power of mobile communication
Company Mission
Passion for Customers Our customers have chosen to trust us. In return, we must strive to anticipate and understand their needs and delight them with our service. Value our customers above everything else and aspire to make their lives richer, more fulfilled and more connected. Must always listen and respond to each of our customers. Strive to delight our customers, anticipating their needs and delivering Passion for our People Outstanding
people
working
together
make
Vodafone
exceptionally successful. Attract, develop, reward and retain outstanding individuals. Empowerment and personal accountability and enjoy what we do. Passion for Results Action-oriented and driven by a desire to be the best.\We are committed to be the best in all we do. All play our part in delivering results and speed flexibility and efficiency in all we do. Passion for the World around Us Recognize the responsibilities that accompany the growth we have achieved.
This will be a force for good in the world. A spirit of partnership and mutual respect is critical in all our activities.
Future Plan Email Accounts:- You can add up to 10 business and/or personal email accounts easily and configure each one individually though the Internet or from your Blackberry smart phone Organizer: - Stay updated with timely access to Contacts, Calendar, Tasks, and Memo pads even when you're away from your desktop Instant Messaging: - Blackberry smart phones support Instant Messaging with Yahoo Messenger and Google Talk, so you can stay in touch with your contacts while on the move. View attachments: - Check all the most widely used attachment formats including JPEG, BMP, TIFF, Microsoft Word, Excel and PowerPoint, Corel WordPerfect and Adobe PDF. Easy set up: - Set up your email accounts in just a few clicks. You can do it online at your computer, or right from the smart phone itself. The set up does not need any server installation or IT resources.
Airtel Organization Chart
Chairman and Managing Director
CEO India / South Asia
President Enterprise Services
CEO Internal Business
Executive Director Network Services
Director DTH Services
Executive Director Human Resource
President Mobile Services
Director Legal and Regulatory
Telemedia Services
Executive Director Supply Chain
Executive Director Finance
Director IT
Chart No.3.2 Organization Chart of Airtel Company
Airtel We are one of Asia’s leading providers of telecommunication services with presence in all the 22 licensed jurisdictions (also known as Telecom
Circles) in India, and in Srilanka. We served an aggregate of 113,439,670 customers as of September 30, 2009 of whom 110,511,416 subscribe to our GSM services and 2,928,254 use our Telemedia Services either for voice and/or broadband access delivered through DSL. And the largest wireless service provider in the country, based on the number of customers as of September 30, 2009. Offer an integrated suite of telecom solutions to our enterprise customers, in addition to providing long distance connectivity both nationally and internationally. Also offer DTH and IPTV Services. All these services are rendered under a unified brand “Airtel�. The company also deploys, owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of Indus Towers Limited. Bharti Infratel and Indus Towers are the two top providers of passive infrastructure services in India.
Product Profile Product by the airtel group is a telecommunication services, and Broadband services, GSM services, Telemedia Services either for voice and/or broadband access delivered through DSL. And the largest wireless service provider in the country. Offer an integrated suite of telecom solutions to our enterprise customers, in addition to providing long distance connectivity both nationally and internationally. Also offer DTH and IPTV Services
Company Background Name
: - Bharti Airtel Limited.
Business Description
: - Provides GSM mobile services in all the 22 telecom circles in India, the first private operator to have an all India presence fixed line and broadband services through DSL in 95 cities in India.
Established
: - July 07, 1995, as a Public Limited Company
Proportionate Revenue
: - Rs.369, 615 million (March 31, 2009)
Proportionate EBITDA : - Rs.151, 678 million (March 31, 2009) Shares in Issue
: - 3,796,951,980 as at Dec 31, 2009
Listings
: - The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India Limited (NSE)
Customer Base
: - 118,864,031 GSM mobile
Registered Office
: - Bharti Airtel Limited (A Bharti Enterprise) Bharti Crescent, 1 Nelson Mandela Road, Vasant Kunj Phase II, New Delhi - 110 070
Company Vision
Airtel Nigeria's primary focus is on various aspects of the telecommunications industry in Nigeria and our vision is to excel in the following core telecommunications areas. Electronic Distribution involves the trading of airtime electronically via Point of Sale Terminals over the GSM networks backbone. This ensures that subscribers can acquire airtime for their phones without unnecessary stress of the purchasing of phone cards.
Company Mission Sales and after sales service of mobile phones and accessories. This aspect of our business entails the sales and distribution of a new line of very functional mobile phones, after sales service and sale of accessories under an Agency Agreement. Airtel is currently the sole distributor of Sagem mobile phones and accessories in Nigeria. GSM Payphones In a bid to ensure availability of a means of communication round the country. Airtel will be deploying GSM payphones in and around Nigeria, with special emphasis in the rural areas. Phones, Fax Machines and Photocopiers. This area of our business is centered on the sale of wireless office equipment for the operations of vast business industries and communities in Nigeria.
Future Plan Easy Billing: - Enjoy a host of rich features only with Airtel e-bill. Register free on ‘My Airtel’ section and view your monthly bill with call details for last three months.
Easy Payment Options: - Anytime Anywhere You can choose from a host of convenient payment options only with Airtel. Credit limit: - Your pre-set credit limit mentioned on your monthly bill helps you keep your mobile charges in control, keeps track of your usage and ensures that your mobile phone is not misused Strong Network Coverage: - Enjoy complete clarity when calling with Airtel .It offers you world class technology and unbreakable network coverage that spans over 23 circles across the country. Long Distance Calling Facility: - Call long distance calls in India and Overseas with STD / ISD facility on your Airtel. GPRS – Roaming: - Use Airtel Postpaid GPRS services, while roaming, to access the internet and office mails (e.g. Blackberry services), from almost anywhere in India and abroad.
Reliance Organization Chart
Board of Director
President Director
Secretary
Marketing Director
Corporate Finance Director
Finance Director
Equity Division
Corporate Secretary
Fixed Income Division
Business Development Division
Research Development Director
Finance /Account Division
Strategic Development Division
Risk Management Division
Information Technology Division
Chart No.3.3 Organization Chart of Reliance Company
Research Division
Reliance The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 28 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles, retail and special economic zones. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fiber producer in the world and among the top five to ten producers in the world in major petrochemical products. Major Group Companies are Reliance Industries Limited (including main subsidiary Reliance Retail limited) and Reliance Industrial Infrastructure Limited
Product Profile The Company expanded into textiles in 1975. Since its initial public offering in 1977, the Company has expanded rapidly and integrated backwards into other industry sectors, most notably the production of petrochemicals and the refining of crude oil. The Company now has operations that span from the exploration and production of oil and gas to the manufacture of petroleum products, polyester products, polyester intermediates, plastics, polymer intermediates, chemicals and synthetic textiles and fabrics. The Company from time to time seeks to further diversify into other industries. The Company's subsidiary Reliance Jamnagar Infrastructure Limited is currently establishing infrastructure facilities such as roads and buildings for the proposed Special Economic Zone (SEZ) at Jamnagar, Gujarat. The Company's major products and brands, from oil and gas to textiles are tightly integrated and benefit from synergies across the Company. Central to the Company's operations is its vertical backward integration strategy raw materials such as PTA, MEG, ethylene, propylene and normal paraffin that were previously imported at a higher cost and subject to import duties are now sourced from within the Company. The Company believes that this strategy is also important in maintaining a domestic market leadership position in its major product lines and in providing a competitive advantage.
The Company's operations can be classified into four segments namely: Petroleum Refining and Marketing business Petrochemicals business Oil and Gas Exploration & Production business Others The Company has the largest refining capacity at any single location. Largest producer of Polyester Fiber and Yarn 4th largest producer of Polypropylene (PP) and Paraxylene (PX) 6th Largest producer of Purified Terephthalic Acid (PTA) 7th largest producer of Mono Ethylene Glycol (MEG)
Company Background Type
: - Public (NSE: RELIANCE)
Founded
: - 1966 As Commercial Corporation
Headquarters
: - Navi Mumbai, India
Key people
: - Mukesh Ambani (Chairman) & (MD)
Industry
: - Oil Conglomerates
Products
:-Petroleum and Petroleum Products Retail stores, Polymers, Polyesters, Chemicals, Textile
Corporate Office
: - Reliance Industries Limited Makers Chambers - IV, Nariman Point, Mumbai 400 021. India.
Revenue
: - US$27.43 billion (2009)
Total equity
: - US$21.31 billion (2009)
Website
: - www.RIL.com
Company Vision Our strengths to execute complex global-scale projects to facilitate leading-edge Information and communication services affordable to all individual consumers and businesses in India. This offer unparalleled value to create customer delight and enhance business productivity. Generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.
Company Mission Global best practices and become a world-class communication service provider guided by its purpose to move towards greater degree of sophistication and maturity. Innovation and dedication to achieve excellence in service quality, reliability, safety and customer care as the ultimate goal. Achieve high growth with the highest levels of productivity. Encourage ideas, talents and value systems.
Promote a work culture that fosters individual growth, team spirit and creativity to overcome challenge and attain goals.
Future Plan Reliance has approached the government seeking Spectrum in 1800 MHz frequency to start GSM services in the country. Reliance Communication, has been offering GSM-based services in six circles including Kolkata, West Bengal, Madhya Pradesh, Orissa, Bihar and North-East while the parent company operates CDMA services in these circles as well as rest of India. If Reliance Communication plans to start GSM services, the company would have to pump in as much as Rs 1,200 crore in two cities of Delhi and Mumbai alone to set up the network, going by the industry. The company has been talking to various GSM equipment vendors to look at various options.
CHAPTER IV ANALYSIS AND INTERPRETATION OF DATA
Chapter IV Introduction to analysis Data The process of arranging data in to groups or classes according to resemblance and similarities is technically called classification. Classification is the process of arranging the data into sequences and groups according to their common characteristic or separating them into different related parts. The data can be calculated on the following bases of geographical area.
Section – A 1. Table Showing “The age group of respondents” Age 15 – 20 Year 21 – 30 Year 31 – 40 Year 41 Year Above Total
No. of Respondents 17 52 19 12 100
Percentage 17 52 19 12 100
Source: Survey Data Interpretation: This table shows that majority of respondents belong to the age group between 21 – 30 year is a 52 percent, 19 percent are of the age group between 31 – 40 year, 17 percent are of the age group between 15 – 20 year and the rest 12 percent are of the age group between 41 year above.
1. Chart Showing “The age group of respondents”
No. of Respondents
60 50 40 30 20
52
19
17
12
10 0 15 – 20 Year
21 – 30 Year
31 – 40 Year 41 Year Above
Age Group of Respondents
Source: Table No.1 Inference: This shows that the major section of the age group of respondents from age group of 21 – 30 and the total response from them is 52 percent.
2. Table Showing “The occupation of respondents”
Occupation Student Employee Self Employed Total
No. of Respondents 55 29 16 100
Percentage 55 29 16 100
Source: Survey Data Interpretation: Majority of respondents were students at 55 percent, 29 percent were employee and the rest 16 percent were self employed.
2. Chart Showing “The occupation of respondents�
No. of Respondents
60 50
55
40 30 20
29 16
10 0 Student
Employee
Self Employed
Respondents occupation
Source: Table No.2 Inference: This shows that the major section of the age group of respondents from group of students and the total response from them is 55 percent.
Section – B
1. Table Showing “The Brand of Cellular Phones used” Mobile Brand Nokia Motorola Ericsson Samsung Siemens Others Total
No. of Respondents 66 12 12 6 0 4 100
Percentage 66 12 12 6 0 4 100
Source: Survey Data Interpretation: This table shows that majority of the respondents use nokia i.e.66 percent, 12 percent uses Motorola and Ericsson, 6 percent uses Samsung and 4 percent of the respondents use other brand cell phone.
1. Chart Showing “The Brand of Cellular Phones used”
No.of Respondents
80 70 60 50 40 30 20 10 0
66
12
12
6
0
Nokia Motarola Ericsson Samsang Siemens
4 Others
Brands of Cellular Phones
Source: Table No.1 Inference: This shows that the major section of the group of respondents who are using Nokia mobile phones and the total response from them is 66 percent. There is no response for Siemens cellular phone.
2. Table Showing “The services that are subscribed�
Services Vodafone Airtel Reliance Total
No. of Respondents 34 48 18 100
Percentage 34 48 18 100
Source: Survey Data Interpretation: That table shows that 48 percent of the respondents use Airtel, 34 percent of the respondents use Vodafone and 18 percent uses Reliance.
2. Chart Showing “The services that are subscribed�
No. of Respondents
60
48
50 40
34
30
18
20 10 0 Vodafone
Airtel
Reliance
Services
Source: Table No.2 Inference: This shows that the major section of the services users from Airtel only and the total response is 48 percent.
3. Table Showing “The schemes that are used�
Schemes Prepaid Postpaid Total
No. of Respondents 80 20 100
Percentage 80 20 100
Source: Survey Data Interpretation: Majority of the respondents use prepaid connection i.e. 80 percent and 20 percent use postpaid connection.
3. Chart Showing “The schemes that are used�
No. of Respondents
90 80 70 60 50 40 30 20 10 0
80
20
Prepaid
Postpaid
Scheme used by Respondents
Source: Table No.3 Inference: That shows that the major respondents are using prepaid service only and total response is 80 percent.
4. Table Showing “The Prepaid /Postpaid scheme used in Vodafone�
Schemes No. of Respondents Night Calling 6 SMS Pack 20 Full Talk Time 6 V To V Free 2 Total 34
Percentage 17.65 58.82 17.65 5.88 100
Source: Survey Data Interpretation: Table shows that 58.82 percent of the respondents use Vodafone sms pack, 17.65 percent of the respondents use Vodafone night calling and full talk time and 5.88 percent of respondents use Vodafone to Vodafone free.
4. Chart Showing “The Prepaid /Postpaid scheme used in Vodafone�
No. of Respondents
25
20
20 15 10
6
6 2
5 0 Night Calling
SMS Pack
Full Talk Time
V To V Free
Prepaid/Postpaid scheme in Vodafone
Source: Table No.4 Inference: This shows that the major respondents are using Vodafone SMS Pack service and the total response is 58.82 percent.
5. Table Showing “The Prepaid /Postpaid scheme used in Airtel� Schemes
No. of Respondents
Percentage
Night Calling SMS Pack Full Talk Time A To A Free Total
4 16 22 6 48
8.33 33.33 45.84 12.50 100
Source: Survey Data Interpretation: Table shows that 45.84 percent of the respondents use Airtel full talk time, 33.33 percent of the respondents use SMS Pack, 12.50 percent Airtel to Airtel free and 8.33 percent of respondents use Airtel Night Calling.
5. Chart Showing “The Prepaid /Postpaid scheme used in Airtel�
No. of Respondents
22
25 20
16
15 10 5
6
4
0 Night Calling
SMS Pack
Full Talk Time
A To A Free
Prepaid/Postpaid scheme in Airtel
Source: Table No.5 Inference: This shows that the major respondents are using Airtel full talk time service and the total response is 45.84 percent.
6. Table Showing “The Prepaid /Postpaid scheme used in Reliance�
Schemes No. of Respondents Night Calling 0 SMS Pack 6 Full Talk Time 4 R To R Free 8 Total 18
Percentage 0 33.33 22.22 44.45 100
Source: Survey Data Interpretation: Table shows that 44.45 percent of the respondents using Reliance to Reliance free, 33.33 percent of the respondents use SMS Pack, 22.22 percent of the respondents Reliance full talk time and none of the respondents were using Reliance Night Calling.
6. Chart Showing “The Prepaid /Postpaid scheme used in Reliance�
No. of Respondents
10
8
8
6
6
4
4 2 0
0 Night Calling
SMS Pack
Full Talk Time
R To R Free
Prepaid/Postpaid scheme in Reliance
Source: Table No.6 Inference: This shows that the major respondents are using Reliance to Reliance free service and the total response is 44.45 percent.
7. Table Showing “The call cost of the service� Cost High
Vodafone 10
Airtel 9
Reliance 5
Average Low Total
27 6 43
19 8 36
14 2 21
Source: Survey Data Interpretation: It is clear from the table that most of the Vodafone users i.e. 10 respondents feel that the call costs are high, 27 respondents feel that it is average and 6 feel that it is low. The majority of the Airtel users i.e. 9 respondents feel that the call costs are high, 19 respondents feel that it is average and 8 feel that it is low. The Reliance users i.e. 5 respondents feel that the call costs are high, 14 respondents feel that it is average and 2 feel that it is low.
7. Chart Showing “The call cost of the service�
No. of Respondents
27
30 25 20 15 10
19 14 10
9
6
8
5 0 Vodafone
Airtel High
Average
5
2
Reliance Low
Source: Table No.7 Inference: This shows that the major respondents are feeling that the present call cost of Vodafone is very high compare to other service providers and the total response is 27.
8. Table Showing “The present network of mobile phone service�
Network High Normal Low Total
Vodafone 9 19 7 35
Airtel 17 22 3 42
Reliance 12 9 2 23
Source: Survey Data Interpretation: It is clear from the table among the Vodafone users, 9 respondents are highly satisfied with the network, 19 respondents feel that it is normal and 7 feel that it is low. The majority of the Airtel users i.e. 3 respondents are not satisfied with the network, 22 respondents feel that it is normal and 17 feel that it is high. The users of Reliance i.e. 2 respondents are not satisfied with the network, 9 respondents feel that it is normal and 12 feel that it is high.
8. Chart Showing “The present network of mobile phone service�
No. of Respondents
25
19
20 15 10
22
9
17 12 7 3
5
9 2
0 Vodafone
Airtel High
Normal
Reliance Low
Source: Table No.8 Inference: This shows that the major respondents are feeling that the present network of Airtel is very high and powerful compared to other service providers and the total response is 22.
9. Table Showing “The nature of the customer care service� Nature Very Helpful
Vodafone 15
Airtel 9
Reliance 6
Helpful Not Helpful Total
27 6 48
22 2 33
9 4 19
Source: Survey Data Interpretation: It is clear from the table that most of the Vodafone users i.e. 15 respondents are very highly satisfied with the customer care, 9 respondents feel that it is helpful and 6 feel that it is not helpful. The majority of the Airtel users i.e. 2 respondents are not satisfied with the customer care, 22 respondents feel that it is the helpful and 9 feel that it is very helpful. The users of Reliance are 4 respondents are not satisfied with customer care, 9 respondents feel that it is helpful and only 6 feel that it is very helpful.
9. Chart Showing “The nature of the customer care service�
No. of Respondents
27
30 25 20 15 10
22 15 6
9
6
9
2
5 0 Vodafone Very Helpful
Airtel Helpful
4
Reliance Not Helpful
Source: Table No.9 Inference: This shows that the major respondents are feeling that the present customer care service of Vodafone is very helpful compare to other service providers and the total response for that are 27.
10. Table Showing “The number of customer browsing GPRS�
Service Yes No Total
No. of Respondents 60 40 100
Percentage 60 40 100
Source: Survey Data Interpretation: Most of the people using the service of GPRS for browsing the net, for different reason and at different level among 100 people survey 60 percent people are using the GPRS service and rest of the 40 percent people do not use the service at all.
10. Chart Showing “The number of customer browsing GPRS�
No. of Respondents
70 60 50 40 30 20 10 0
60 40
Yes
No Usage of Services
Source: Table No.10 Inference: This shows that the major respondents are using GPRS services and total response for that 60 percent.
11. Table Showing “The users using plan for Browsing�
Plans Daily Weekly Monthly Yearly Total
No. of Respondents 16 18 14 14 62
Percentage 25.81 29.03 22.58 22.58 100
Source: Survey Data Interpretation: This table shows that 25.81 percent of the respondents use daily plan, 29.03 percent use it as weekly plan and 22.58 percent use it monthly and yearly.
11. Chart Showing “The users using plan for Browsing�
No. of Respondents
20
16
18
15
14
14
Monthly
Yearly
10 5 0 Daily
Weekly
Browsing Plans
Source: Table No.11 Inference: This shows that respondents of the browsing plan. More respondents are using weekly service and the total response is 29.03 percent.
12. Table Showing “The download speed for Browsing�
Download Speed No. of Respondents Strongly Satisfied 6 Satisfied 34 Moderate 22 Dissatisfied 8 Total 70
Percentage 8.57 48.57 31.43 11.43 100
Source: Survey Data Interpretation: This table shows that 48.57 percent of the respondents are satisfied with the download speed for the browsing, 31.43 percent of the respondents are moderate with download speed and 8 percent of the respondents are not satisfied with the download speed for the browsing.
12. Chart Showing “The download speed for Browsing�
No. of Respondents
40
34
30
22
20 10
8
6
0 Strongly Satisfied
Satisfied
Moderate
Dissatisfied
Download Speed
Source: Table No.12 Inference: This shows that more numbers of respondents are satisfied with the download speed for the browsing and total response is 48.57 percent.
13. Table Showing “The types of download by users�
Types of Download No. of Respondents Study Material 26 Entertainment 18 Spiritual 24 Finance 14 Others 8 Total 90
Percentage 28.89 20 26.66 15.56 8.89 100
Source: Survey Data Interpretation: Majority of respondents were student is 28.89 percent. And they download mostly study material. And second majority response is entertainment, finance and others downloads.
13. Chart Showing “The types of download by users�
No. of Respondents
30 25 20 15 10 5 0
26
24 18
14 8
Study Material
Entertainment
Spiritual
Finance
Others
Types of Download
Source: Table No.13 Inference: This shows that types of download by users and more numbers of respondents are downloading study material and the total response is 28.89 percent. And other respondent is the purpose spiritual, finance, entertainment etc.
14. Table Showing “The opinion about sound clarity�
Sound Clarity Good Average Bad Total
Vodafone 28 17 2 47
Airtel 19 13 1 33
Reliance 7 10 3 20
Source: Survey Data Interpretation: It is clear from the table that most of the Vodafone users i.e. 28 respondents says that the sound clarity is good, 17 respondents feel that it is average and 2 feel that it is bad. The majority of the Airtel users i.e. 1 respondent is not satisfied with the sound clarity, 13 respondents feel that it is average and 19 feel that it is very good. The majority of the Reliance users i.e. 7 respondents say that the sound clarity is good, 10 respondents feel that it is average and 3 feel. That it is bad.
14. Chart Showing “The opinion about sound clarity�
No. of Respondents
30 25 20
28 19
17
13
15 10
7 2
5 0
3
1
Vodafone
Airtel Good
Average
10
Reliance Bad
Source: Table No.14 Inference: This shows the opinion of respondents towards sound clarity and maximum response for good sound clarity is provided by Vodafone and the total response for it is 28 percent.
15. Table Showing “The users response level with the mobile phone services�
Users Response No. of Respondents Strongly Satisfied 26 Satisfied 46 Moderate 18 Dissatisfied 8 Strongly Dissatisfied 2 Total 100
Percentage 26 46 18 8 2 100
Source: Survey Data Interpretation: Majority of the respondents were dissatisfied with the mobile services i.e. 8 percent and the 46 percent were satisfied with the service provided and 26 percent is strongly satisfied with the mobile phone services provided.
15. Chart Showing “The users response level with the mobile phone services�
No. of Respondents
60 50 40 30 20 10 0
46 26
18 8
Strongly Satisfied
Satisfied
Moderate
Dissatisfied
2 Strongly Dissatisfied
Users Response for Mobile Phone Services
Source: Table No.15 Inference: This shows the response of respondents toward their satisfaction, and major group of respondent are satisfied with the mobile phone service providers services and the total response is 46 percent.
CHAPTER V SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION
Chapter V Findings
Mobile phones are used by all walks of society and a clear cut demarcation cannot be made. Respondents in the age group of 21-30 are the heavy users of mobile phones. Nokia brand of mobile is a clean winner as subscriber. Subscribers are mainly using prepaid services instead of postpaid services. Airtel is a clear winner among all service providers as it is having highest network, however Vodafone has got reasonable response in terms of the low call cost and they are charging less then other service provider. Airtel has very good customer care services than the other service providers. Vodafone and Reliance have come out as providing bad customer service. Mobile phones in general are nowadays used for browsing but its have moderate satisfaction level among all customers of all services providers with speed as it’s very low and costly too. Most of the respondents are satisfied with the services.
Suggestions Based on the data collected through subscriber survey certain suggestions are given they are:
Many respondents complain about the disturbance during traveling and some measures should be taken to overcome this problem. The customer care of all service providers should be robust and customer friendly and also should be available 24 hours. TRAI should have stringent measures for issuing of sim cards as security is a major issue in our country now. Voice clarity among inter service providers has to be made better and conflicts if any should be removed. Call rate among service providers should not vary much or there should be uniform call rate among all cellular service providers. Most of the Vodafone users have complaints about the network problem with in city limits, so more towers should be put up to avoid this problem. Airtel should try to expand its coverage area and should provide roaming facility all over India. The customer care of Vodafone is quite bad, it should be checked and changed. The talk time should be increased by all the companies. Reliance should try to expand its coverage area. Various schemes and services should be provided which will help the service providers to turn new subscribers and gain confidence among already existing subscribers. Night offer should be provided by Vodafone, Airtel and Reliance.
Conclusion The deployment of alternative across networks has been recognized as a means towards greater service competition and lesser regulation in the
telecom industry. In simple terms, the idea is that one each consumer could choose from among multiple service providers, the need to regulate access would wane. Competition in network provision or in access provision is therefore considered to be the key to both fostering retail competition and to reducing market power in the network provision side. During the 1990s cellular access networks emerged as the most viable alternative access network to the incumbents fixed access network. Cellular mobile telephony services were launched in the early 1980s as an expensive service tailored to business customers. Since then cellular networks have made tremendous contributions to reforms in telecommunications by demonstrating the benefits of competition and innovation and by extending connectivity. Cellular subscription has grown exponentially, exceeding penetration rate of 60 percent in many countries, while the number of mobile subscribers is rapidly overtaking the number of fixed lines.
Mobile
telecommunications not only add the feature of mobility, but they also complement and compete with the fixed line network for voice communication. Cellular services have created a new way for entrants gain access to customers and appear to have the maximum potential in breaking the incumbent’s monopoly control over customer access for long major problem in the telecommunications
industry. Significantly mobile
telecommunications can play an increasingly important role in providing universal service at a lower cost than fixed line service. For users, mobile telecommunication offers the obvious benefits of mobility and better service quality. Given the large benefits users are deriving from mobile telecommunications services and the competition the mobile telephony is likely to provide to the incumbent fixed line monopolies
in the foreseeable future, there may be a public good in sustaining the growth of this industry.
BIBLIOGRAPHY
Reference Books Philip Kotler S. ,Principles of Marketing, Pearson Publication, new delhi, 11th Edition Philip Kotler, Marketing Management, Millennium Edition, Prentice Hall India, September 1999. Valerie. Zeithamal, Service Marketing, the Mc Graw – Hill Companies, October 2002. Adrian Payne, The essence of Service Marketing, Prentice Hall of India, February 2001. Ronald Rust and Anthony, Service Marketing, International student edition, January 2002.
Magazine Referred Business Today India Today Business Line
Website www.NetMBA.com www.google.com www.Vodafone India.com www.RIL.com www.airtel.com
ANNEXURE
Financial Statement
Vodafone reports its results in accordance with International Financial Reporting Standards (IFRS)
Year
Turnover £m
Profit
Profit for
before
the year
tax £m
£m
Basic
Proportionate
EPS
customers (m)
2008
35,478
9,001
6,756
12.56
260
2007
31,104
(2,383)
(5,297)
(8.94)
206.4
2006*
29,350
(14,835)
(21,821)
(35.01)
170.6
2005
34,073
7,951
6,518
9.68
154.8
2004
36,492
9,013
6,112
8.70
133.4
Table No.3.1 Vodafone Financial Statement
Financial Statement Equity
Reserves /
Loan
Investments
Net
Year
share
surplus
Funds
in Crore
Current
Mar ' 09
capital 1,898.2
25,627.38
35,355.48
11,777.76
Assets 35,355.48
Mar ' 08
4 1,897.9
18,283.82
26,809.71
10,952.85
26,809.71
Mar ' 07
1 1,895.9
9,515.21
16,751.95
705.82
16,751.95
Mar ' 06
3 1,893.8
5,437.42
12,139.72
719.70
12,139.72
Mar ' 05
8 1,853.3
2,675.38
9,525.76
931.90
9,525.76
7
Table No.3.2 Airtel Financial Statement
Financial Statement Turnover
Total
Equity
Net
Total
Market
Year
in
income
Share
Worth
Assets
capital
2008-09
Crore 146,328
148,388
Capital 1,574
126,373
245,706 239,721
2007-08
139,269
144,898
1,454
81,449
149,792 329,179
2006-07
118,354
118,832
1,393
63,967
117,353 198,905
2005-06
89,124
89,807
1,393
49,804
93,095
Table No.3.3 Reliance Financial Statement
110,958
QUESTIONNAIRE Dear Sir / Madam, I, Patoliya Sachin Pravinbhai, student of CITY COLLEGE, Bangalore, doing dissertation project on the “EVALUATION OF PRICING STRATEGIES IN TELECOM SERVICES WITH SPECIAL REFERENCE TO MOBILE SERVICES”, herewith furnishing the questionnaire in respect of the opinion regarding CUSTOMER’S EXPECTATION AND EXPERIENCES. I request you kindly to tick on the block what you feel appropriate and write the answers where it’s needed, I assure that the information furnished for the purpose be kept strictly confidential.
PART – A Name Contact No. Address (A) 15 – 20 Yrs.
( )
(C) 31 – 40 Yrs.
( )
(B) 21 – 30 Yrs.
( )
(D) 40 Yrs. Above ( )
Age In Yrs. Qualification Occupation Income per Month
(A) Below Rs 10,000 (B) Rs 10,000 - Rs 20,000 (C) Rs 20,000 - Rs 30.000 (D) Above Rs 30,000
( ( ( (
) ) ) )
PART – B (1) Which brand cellular phone are you using? Nokia ( ) Motorola ( ) Ericsson ( ) Samsung ( ) Siemens ( ) Others ( ) (2) Which service are you subscribing? Vodafone ( ) Airtel ( ) Reliance ( ) (3) Which provider is giving more service like?
Vodafone Internet Mobile Banking Voice Mail E-mail & Chat News Games Roaming Facility Entertainment (4) Which scheme are you using? Prepaid ( ) Postpaid ( )
Airtel
Reliance
(5) Which prepaid/postpaid scheme are you using in Vodafone? Night Calling ( ) SMS Pack ( ) Full Talk Time ( ) V to V Free ( ) (6) Which prepaid/postpaid scheme are you using in Airtel? Night Calling ( ) SMS Pack ( ) Full Talk Time ( ) A to A Free ( ) (7) Which prepaid/postpaid scheme are you using in Reliance? Night Calling ( ) SMS Pack ( ) Full Talk Time ( ) R to R Free ( ) (8) How you feel about call rate of your telecom service? High ( ) Average ( ) Low ( ) (9) How do you feel about the present network of mobile phone service? High ( ) Normal ( ) Low ( ) (10) How do you feel about the call cost of the service? Good ( ) Average ( ) Bad ( ) (11) How is the customer care service? Very helpful ( ) Helpful ( ) Not Helpful ( ) (12) Are you using GPRS service for net browsing? Yes ( ) No ( ) (13) Which plan you are using for net browsing? Daily ( ) Weekly ( ) Monthly ( ) Yearly ( ) (14) What download speed is provided by the services? Above 10 kbps ( ) 10 – 40 kbps ( ) 40 kbps and above ( )
(15) Are you satisfied with this download speed? Strongly Satisfied ( ) Satisfied ( ) Moderate ( ) Dissatisfied ( ) Strongly Dissatisfied ( ) (16) What type of download mainly preferred by you? Study material ( ) Entertainment ( ) Spiritual ( ) News ( ) Finance ( ) Others ( ) (17) What is your opinion about the sound clarity? Good ( ) Average ( ) Bad ( ) (18) Are you satisfied with the mobile phone services? Strongly Satisfied ( ) Satisfied ( ) Moderate ( ) Dissatisfied ( ) Strongly Dissatisfied ( ) (19) Are you looking forward for any other schemes / service? If yes, please specify -------------------------------------------------------------------------------------------------------------------------------------------------------(20) Suggestion for improvement of mobile phone services. ---------------------------------------------------------------------------------------------------------------------------------------------------------
Thank You