Value Added Services

Presented By:-

Ashish Jajodia

Drupad Parmar

Jayesh Baldania

Rinki Kumari

Sandeep Goyal

Sriram Santosh Bal

Agenda

• Outline

• Management decision problem

• Marketing research problem

• Research Design

• Components

• Research Methodology

• Data collection tools

• Data Analysis

• Recommendation

Outline

Mobile telephone is getting saturated in the Metro areas.

The only way for the companies to increase revenue is by

providing value added service at a price.

Required to advice the Co. XYZ to enable them to provide

profitable value added services.

Management Decision Problem

What value added services will generate revenue for company XYZ?

Exploratory Research

• Primary

• Reliance store

• Vodafone store

• Airtel store

• Outcomes

• Caller tunes and missed call alerts are most popular.

• Price is a barrier.

• Most customers come to deactivate VAS.

Secondary Research

Secondary Research

Marketing Research Problem

Determine the awareness & willingness to pay for

existing & prospective services.

Research Components

Component 1

Desire for the prospective services

List of information required:-

Aspirations of the customer regarding prospective services.

Value added services which can be introduced so that the

customers find value in it.

Customization which a customer would prefer in existing

services.

Kind of services a customer will be willing to spend his

hard earned money.

Component 2

Awareness of the existing services

List of information required:-

Customers know about the VAS being provided.

How much are they aware of VAS?

Component 3

Effectiveness of the existing services

List of information required:-

Customer’s satisfaction with the services being offered.

Any up gradation which the existing services require.

Component 4Willingness to spend on such services

List of information required:-

Portion of the billed amount that corresponds to the

payment of VAS

Customer’s willingness to spend on desired

services.

Customers using low handsets be willing to pay for

VAS which is reasonably priced & compatible with

their handsets.

Component 5

Demographic & psychographic profile of the customers

List of information required:-

Target customers.

Age group of customers.

Research Methodology

Research instrument

Tools for data analysis

Scaling tools

Research Instrument

• Primary Research - Questionnaire

– Sample size- 83

– Personal Interview

– Telephonic Interview

Data Analysis Tools

Scales:-

Nominal

Ordinal

Interval

Ratio

Tools:-

• Mean

• ANOVA

• Kendell

• Z-test

Hypotheses

Ho: Most of the customers are aware of VAS

Ho: Price is the major barrier for subscription of VAS

Ho: Customers are satisfied with VAS

Ho: Customers don’t find value addition in VAS

Questionaire

• Q1- To analyse the importance of VAS among customers.

• Q2,Q3 & Q4-To check the awareness of value added services

among customers.

• Q5-To trace the effectiveness among customers about existing

value added services, need for customization & their

willingness to spend on such customization.

• Q6 & Q7- To understand what stops the customers from

availing value added services.

• Q8 & Q9-To understand the desire of customers for

prospective services & their willingness to spend on such

services.

• Q10 & Q11-To know the monthly bill & expenditure of value

added services.

Data AnalysisDemographics

Type of connection

Data Analysis

• H0: Customer don’t find value addition in VAS.

• Inference

• H0: Most of the customers are aware of value added services

Inference:- 91.56% is aware of the existence of VAS i.e they

know about at least one of the VAS.

Data Analysis

• Medium of awareness

Inference:- Promotional calls and SMSes are the major contributor towards

such awareness

Data Analysis

• VAS recall

Inference:- Basic services like Caller tune and GPRS have the maximum

recall value.

Data Analysis

Data Analysis

• H0: Customers are satisfied with VAS.

Data Analysis

• Inference:- Out of the services which the customers are using

such as Cricket alert, Stock alerts, News alerts, heavy chunk of

customers want customization.

Data Analysis

• Services for those the customers are willing to pay more such

as GPRS should be promoted and services like Cricket alerts,

News alerts, if customized can add a lot of revenue for the

company.

Data Analysis

Observation 3

Data Analysis

Data Analysis

Observation 4

• Customers who want to avail VAS & willingness to pay for

customized existing services is determined.

Data Analysis

• H0: Price is a major barrier for subscription.

• Inference:-

– Kendell Approach

– Hypothesis testing

Data Analysis

• Inference:-

Auto activation and hidden costs act as the deterrent for the customers.

Prospective ServicesCustomer's Wish List

Inference:-Customers need specific services. So, if possible, customers

should be provided with those specific services to increase the revenue.

Prospective Services

Inference:- Customers are willing to pay for prospective

services in between 16-30 for the services offered so the

company can come out with these services at those price levels.

Data Analysis

• Monthly expenditure on VAS

– Analysis- The finding of ANOVA suggests that the post paid and pre

paid customers are INDIFFERENT towards VAS.

– The graph below suggests that the subscription to prospective VAS is

totally indifferent to the monthly phone bill.

Regression Analysis

• The regression between VAS bill and the Bill incurred has no

relationship so VAS is not dependent on the amount of the

monthly bill incurred.

• The regression between VAS bill and the age group is

indifferent hence there is no dependence.

• The regression between VAS bill and the gender bias is

indifferent hence there is no dependence.

• We can say that there is no specific SEGMENT which can be

identified for VAS. So it should be directed to all.

Recommendation

• “Less Relevant” is the one of the major factor which stops

customers from availing VAS. So, promotions should be

designed in such a way that the customer find value in it and

hence avail it.

• Educational services, Shopping payments, Live TV, Stock

trading & Make my way services should be introduced and

price should be kept within 16-30 Rs.

• If the company wants to increase revenue from the existing

services, then it should give more customized services.

Recommendation

• Promotional calls, SMSes should be more encouraged to make

customers more aware of their offerings as they are the most

effective medium.

• TV ads, Newspapers & Billboards should be made more

effective for promoting value added services.

• Customers are willing to pay for prospective services in

between 16-30 for the services offered so the company can

come out with these services at those price levels.

Recommendations

• Existing services like stock alerts, news alerts, cricket alerts, if

customized, can increase the revenue for the company.

• Since, price is not a major barrier for subscription, we should

not change the rates of existing services.

• Auto activation and hidden costs act as the deterrent for the

customers to subscribe for VAS so the company should try and

minimize such annoying factors so as to attract more

customers.

Thank You..!!!!!