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SOLAPUR UNIVERSITY, SOLAPUR
A
PROJECT REPORT
ON
“A STUDY OF BRANDING AND CUSTOMER’S PURCHASE
PREFERENCES IN MOBILE PHONE TELECOMMUNICATION WITH SPECIAL REFERENCE TO IDEA CELLULAR LTD, AURANGABAD”
SUBMITTED TOSOLAPUR UNIVERSITY, SOLAPUR.
IN THE PARTIAL FULFILLMENT OFREQUIREMENTS FOR AWARDING THE DEGREE OF
MASTERS IN BUSINESS ADMINISTRATION(M.B.A.)
2009-10
SUBMITTED BY
MR. ANIL S. SALUNKE
UNDER THE GUIDANCE OF
PROF. MISS. NAMRATA MANE
THROUGH
THE PRINCIPALBHARAT RATNA INDIRA GANDHI COLLEGE OF ENGINEERING,
DEPARTMENT OF MANAGEMENT STUDIES,KEGAON, SOLAPUR.
DATE: /11/2009 PRINCIPAL
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DECLARATION
I them, undersigned, hereby declare that the project report entitled “A Study of
Branding and Customer’s Purchase Preference in Mobile Phone
Telecommunication with Special reference to Idea Cellular, Aurangabad.” Has been
completed under the guidance of Prof. Miss Namrata Mane.
This is my original work and empirical finding in this report are based on data
collected by myself. The report is not copied from any other report submitted to Solapur
University or any other university.
I them, undersigned understands that any such copying is liable to be punished in
any way the university authorities deem fit.
Place: Solapur
Date: /11/2009 MR.ANIL S.SALUNKE
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CERTIFICATE
This is to certify that the project report entitled ““A Study of Branding and Customer’s
Purchase Preference in Mobile Phone Telecommunication with Special reference to
Idea Cellular, Aurangabad.” Submitted by Mr. Anil Sheshrao Salunke in partial
fulfillment of the requirements for the award of MBA degree to Solapur University,
Solapur is a genuine and bonafide work prepared under my supervision and guidance.
To the best of my knowledge and belief the matter presented in this report has not
been submitted earlier to any university for similar purpose.
Place: Solapur
Date: /11/2009 PROF. MISS.NAMRTA
MANE
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ACKNOWLEDGEMENT
This project report is the outcome of my summer training at Idea Cellular
Limited, Aurangabad.
I wish to express my sincere gratitude to Mr.Narendra Ruchandani
(Asst. Sales Manager) who has directed me in this report and given the valuable
guidance, without whom this project would not have been completed.
I also wish to thank my guide in the Institute Prof. Miss.Namrata Mane
this valuable guidance during preparation of the project.
I am thankful to Mr. M. D. Patil Sir, Principal of “Bharat Ratna Indira
Gandhi College of Engineering, Kegaon, and Solapur”, for permitting me to do
this program and explore my talents.
Place: Solapur
Date: /11/2009
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---------------
MR. ANIL SHESHRAO SALUNKE
INDEXINDEX
Chapter Topic Page No.
1. INTRODUCTION TO STUDY 1-111.1 Introduction 1
1.2 Objectives of the study 31.3 Importance of the study 4
1.4 Research Methodology 51.5 Limitations of the study 9
2. ORGANIZATION PROFILE 10-23
2.1 Introduction to the Industry 10
2.2 Company Partners 132.3 Company Values 14
2.4 Introduction of product and Other Product 162.5 Organization chart 222.6 Body Members 23
3. THEORETICAL FRAMEWORK 24-33
3.1 Introduction 24
3.2 Corporate Branding and Brand Management 26
3.3 Factor Affecting Customer Purchase 27
3.8 Customer Characteristics 33
4. DATA ANALYSIS AND INTERPRETATION 34-46
5. FINDINGS 47
6. SUGGESTIONS 48
7. BIBLOGRAPHY 50
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8. ANNEXURE
INDEX OF TABLEINDEX OF TABLE
TABLE SR.NO
NAME OF TABLE PAGE NO.
1.1 Table showing Information gathered by using
Research Methodology and Questionnaire. 8
4.1Table showing Market share of different Mobile
Telecom companies in Aurangabad city.35
4.2. Table showing no. of customer’s given preference towards the Idea cellular ltd. 36
4.3 Table showing no. of customers given preference to mode of accessing information about SIM card of Idea cellular ltd.
37
4.4 Table showing no. of customer satisfaction level towards Brand as Idea cellular ltd. 39
4.5 Table showing no. of customer’s opinion about loyalty preference of Idea cellular ltd 41
4.6 Table showing customer’s loyalty period for using Idea cellular service 44
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4.7 Table showing the no. of customer’s opinion about switching to other companies network
45
INDEX FOR GRAPHINDEX FOR GRAPH
GRAPH.NO NAME OF GRAPH PAGE NO.
4.1Graph showing no. of customers given importance towards services offered by Idea cellular ltd.
38
4.2. Graph showing no. of customer’s opinion about quality of Idea cellular services. 40
4.3
Graph showing no of customers given
preferences towards price or brand while making
a purchase decision.42
4.4 Graph showing no. of customers having impact of price while purchasing Idea cellular service. 43
4.5 Graph showing no. of customer’s opinion about switching from the existing Brand of Idea cellular.
46
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TTOPICOPIC 1.I 1.INTRODUCTIONNTRODUCTION T TOO S STUDYTUDY
1.1. I1.1. INTRODUCTIONNTRODUCTION O OFF T THEHE S STUDYTUDY
The Telecommunication sector growing rapidly at a very fast rate. Previously the
cellular phones were considered as a luxury product but now days due to the completion
it is become cheap and also it is become necessary to everyone to communicate each
other.
Telecom is going under dramatic changes. More and more competition is
emerging in Telecom sector. Service quality has become more important rather than
technical aspects in the Telecom sector. Delivering quality services is an essential
ingredient for establishing and maintaining loyal and profitable customer base. Service
quality is “the delivery of excellent or superior services relative to customer
expectations”
Today, the world becomes a global village. Customer need, values, ethics, and
wants are changing. Customer wants different option and alternatives. They want value
for money and the market has shifted to from seller market to the buyer market.
Study has been completed in Idea cellular ltd, Aurangabad. This study is carried
out the Branding and Customer Purchase Preference towards the Idea cellular customer.
This study to understand the consumer behavior and one of the important aspects is to
that for finding consumer’s status and satisfaction level.
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Also to study is carried out for to determine the parameter about the services and
to measure the satisfaction of a present customer and to understand their expectations for
the company services.
A service is the action of doing something for someone or something. It is largely
intangible (i.e. not material). A product is tangible (i.e. material) since you can touch it
and own it. A service tends to be an experience that is consumed at the point where it is
purchased, and cannot be owned since is quickly perishes.
It is seen the most of the companies in mobile phone telecommunication promote
more their name than the product/service they offer to the customers. The purpose of this
study is to analyze the role of branding in mobile telecommunication industry and
purchase preference What are reasons that make customers purchase mobile phone
connection of any particular company.
Either it is because of Brand or it is because of the Service, Loyalty, Price or any
other reason.
This study will examine that in mobile phone telecommunication either Brand is
sufficient for a long term customer base, to know about brand and its presence in the
consumer’s mind.
This study shows that organization have to involve strategies to counter the ever
increasing and identifying competition. They look for competitive edge and competitive
strategies. Due to the changing economic scenario, marketing managers have to look new
innovation and create strategies in order to meet the competitive threat positively and
effectively.
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Especially it has become necessity for a professionals’, businessmen, company
executives etc. the cellular phone help them to communicate each other.
1.2. O1.2. OBJECTIVESBJECTIVES O OFF T THEHE S STUDYTUDY
1. To know the market share of different Mobile Telecom companies in
Aurangabad city.
2. To study the Buying Behavior of the Customer.
3. To know customer satisfaction level about Idea cellular service.
4. To know the customers preference towards Idea cellular service.
5. To know the Importance of services.
6. To determine the customer’s loyalty preference towards Idea cellular
service.
7. To understand the future expectations from the company.
8. To study different reason for switching from existing brand.
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1.3. I1.3. IMPORTANCEMPORTANCE O OFF S STUDYTUDY
1. To attract the customer by using the marketing strategies.
2. The study is covered numerous problem faced by the customer.
3. This study was interacting with customers for solving their problem and to
know the level of customer satisfaction.
4. The study was done keeping in the view of telecom operator but it very much
useful to the idea cellular ltd.
5. To know the purchases preference of the customer form that company can
develop attractive plan in a competitive world.
6. To increase market share of the company.
7. This study is also help to understand the consumers need /demand.
8. This study is helpful for to retain the customers
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1.4. R1.4. RESEARCHESEARCH M METHODOLOGYETHODOLOGY
a. PRIMARY DATA
In this project primary data is gathered through questionnaire. The questionnaire is filled
by the sample respondents which consist of citizen of Aurangabad city, who are mobile
phone user of Idea cellular ltd.
The sources of the primary data in this project are idea cellular network users, franchisee
owner and Idea cellular company employees. For the collection of primary data from
customers survey method is followed. It has following advantages.
1] Time saving
2] Reduce cost of enquiry
3] Efforts saving
4] Ensure detailed enquiry
5] Produce more reliable results
b. SECONDARY DATA
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Secondary data is the data which is collected for some other purposes or the data which is
gathered by previous researchers. This study includes the secondary data from articles,
books, data bases and internet, magazine Idea cellular Training book.
Internet source: www.ideaccellulkar.com
www.google.com,
www.whereisdoc.com
c. SAMPLING PLAN
1] Sample segment in Aurangabad city region.
2] Sampling Unit: - All Idea cellular Mobile phone connection User
3] Sampling Size: - The sample size of the survey is 100 customers.
d. CONTACT METHOD
After the sampling is done, the numbers collected are called to inform about the
services (tariff plan) which are newly launched by Idea. Then as per the list of
numbers few enquiries are done as in, what rental plan they use, etc.
Then after giving information about these tariff plan services and discussing about
the rental plan for postpaid and prepaid call rates and plan , if the customer is
interested in these services, an appointment is taken from that person to meet
personally and give details information about plan showing their benefits, and
convinced him.
After clarifying all the doubts of the customer if he is interested then collect
details document of the person.
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By taking all this information, after getting C.V. positive services are been
activated through customer care.
ee. D. DATAATA C COLLECTIONOLLECTION T TOOLSOOLS
There are many tools available for gathering data but it depends upon question and
purpose of study that which tool is used for study. Instruments of research include
interview, observation, survey and questionnaire.
1. INTERVIEW:
Interview is very important and reliable tools for data collection .Most of the interviews
are open ended in nature, which are used for qualitative study. Mostly I have used this
interview method for that customer cannot understand the Questionnaire and Those who
are in the Employee of the Idea Cellular Company.
2. SURVEY:
Survey tool requires questions and answers of these questions are being used for analysis,
it is more efficient and cost saving than observations and it is also easy.
There are many mediums available for data collection and survey, which can be a
telephone, email or direct interaction with respondent.
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3. QUESTIONNAIRE:
A questionnaire was prepared keeping a layman in mind so that customer can understand
the question easily without any confusion so that they could provide the right
information. The questions are prepared keeping in the mind of the company’s
requirement from the survey.
Questionnaires include the two types of questions.
a) Close-ended questions : - Close-ended questions specify all the possible answers which are easier to interpret and tabulate.
b) Open-ended questions: - Open-ended questions allow to respondents to answer in their own words and often reveal more about how people think and response.
Table below give a little glance of the Information which will be gathered by using above
tools and Questionnaire.
Topic Specific Information investigated
General Information Gender information
Mobile connection
Type of connection
Brand, Service & Quality, Price,
Loyalty & Trust
Brand Attachment with the brand
Customer satisfaction
Brand Switching information
Service & Quality Satisfaction for service and quality
Connection chosen and importance
of service
Switching information
Price Importance of price
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Impact of price on purchase
decision
Switching due to price
Price paid for services
Loyalty & Trust Time since using this particular
brand
Loyalty with brand or loyalty with
services
Trust preferences
Runoff from existing brand
Table1.1
1.5. L1.5. LIMITATIONSIMITATIONS O OFF S STUDYTUDY
1. The study was restrictive to ‘Idea cellular ltd, Aurangabad’ only.
2. The data is based on past records, so it cannot predict future.
3. The main important limitation of the study is time factor, study was completed
within 50 days only.
4. Due to secrecy, several data does not disclosed by the Company.
5. Sample space is 100 in Aurangabad city area Osmanpura side.
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6. The information given by customers is assumed as genuine.
TOPIC 2. ORGANIZATION PROFILE
2.1. INTRODUCTION TO THE INDUSTRY
As India’s leading GSM mobile services operator, IDEA Cellular has licenses to operate
in 23 circles. As of now, Idea Cellular Limited is operating in 16 circles. With a customer
base of over 40 million in 15 service areas, IDEA Cellular has operations in Delhi,
Maharashtra & Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh,
Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East, Punjab, Karnataka,
Rajasthan, Bihar and Kerela. Operations are soon expected to start in Orissa and Tamil
Nadu-the first steps in providing pan India services covering over 90% of India's
telephony potential. IDEA Cellular’s footprint currently covers approximately 45%of
India’s population and over 50% of the potential telecom-market.
As a leader in Value Added Services, Innovation is central to IDEA’S VAS factory. It is
the first cellular company to launch music messaging with ‘Cellular Jockey’, Background
Tones’, ‘Group Talk’, a voice portal with ‘Say Idea’ and a complete suite of mobile e-
mail services. A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has
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the distinction of offering the most customer friendly and competitive Pre Paid offerings,
for the first time in India, with ‘Super Power’, 2 minutes outgoing free, lifelong offer and
other segmented offerings like Women’s card. ‘Lifetime Idea’ is the first and only loyalty
program, for pre paid customers, introduced by a cellular brand.
Customer service and innovation are the drivers of this cellular brand. A brand known for
their many firsts, Idea is only operator to launch GPRS and EDGE in the country. Idea
has received international recognition for its path-breaking innovations when it won the
GSM Association Award for "Best Billing and Customer Care Solution" for 2
consecutive years.
Idea Cellular is part of the Aditya Birla Group, which is India’s first truly multinational
corporation. The group operates in 25 countries, and is anchored by over 1, 25,000
employees belonging to 25 nationalities. The Group has been adjudged 'The Best
Employer in India and among the Top 20 in Asia' by the Hewitt-Economic Times and
Wall Street Journal Study 2007
Global in vision, rooted in Indian values, the group is driven by a performance ethic
pegged on value creation for its multiple stakeholders. The combined holding of the
Aditya Birla Group companies in Idea stands at 98.3%. Mr Kumar Mangalam Birla has
been named the chairman of the company. Aditya Birla Nuvo Ltd. Holds 35.7%, Birla
TMT Holdings Ltd. 44.9%, Grasim 7.5% and Hindalco 10.1% in Idea.
OUR MISSION
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IDEA CELLULAR LTD
NAME : Idea Cellular Ltd,Aurangabad
ADDRESS : Plot No 9,Rajendra Bhavan ,Adalat Road, Next to
L.I.C.Bldg,Aurangabad-341 050.
FOUNDER : Mr Kumar Mangalam Birla
COO : Mr. P.Lakshminarayana,
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BRANCHES : 1 Branch Office And 4 My Idea Franchise
ASM : Mr.Damodhar Shinoy
ESTABLISHMENT : Year 1992
EMPLOYEE : 1000(Aurangabad)
2.2. OUR PARTNERS
Kodiak Ltd
Mauj
Net4nuts India Ltd
Yahoo
Rediff
Indiatimes
Mobile2win
Sify
NDTV
Roamware.inc
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Starhome
Bharti Telesoft
Nokia - Siemens
Ericsson
Atos Origin
Onmobile Asia Pacific Ltd
2.3. OUR VALUES
VALUES WE VALUE :
Integrity - Honesty in every action
At Aditya Birla Group, Integrity is defined as: Acting and taking decisions in a manner
that is fair, honest, following the highest standards of professionalism and also perceived
to be so. Integrity for us means not only financial and intellectual integrity, but in all
other forms as are commonly understood.
key words that connote Integrity are:
Ethical
Truthful
Principled
Transparent
Upright
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Respectful
Commitment - deliver on the promise
At Aditya Birla Group Commitment is defined as: On the foundation of integrity, doing
whatever it takes to deliver value to all stakeholders. In the process, taking ownership of
our actions and decisions, those of our team and that part of the organization that we are
responsible for.
Key words that connote commitment are:
Accountability
Discipline
Responsibility
Result -orientation
Self-confidence
Reliability
Passion - energized action
At Aditya Birla Group Passion is defined as: A missionary zeal arising out of emotional
engagement with the organization that makes work joyful and inspires each one to give
his or her best. Relentless pursuit of goals and objectives with the highest level of energy
and enthusiasm, that is voluntary and spontaneous.
Key words that connote passion are:
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Intensity Innovation Transformational Fire-in-the-belly Inspirational Deep sense of purpose
Key words that connote Seamlessness are:
Teamwork
Integration
Involvement
Openness
2.4. INTRODUCTION ABOUT THE PRODUCT
Product are comes in the market pre-paid and post-paid can be applied for off-
the self and one can start using it right away. In prepaid there is no security deposit or
monthly rental but in post-paid customers have to paid security deposit and monthly
rental also. This cards can brought from any outlets of the IDEA retailer.
1. SUBSCRIBER IDENTITY MODULE (SIM) SIM provides mobile equipment with identity
Without SIM ,mobile is not operational (except for emergency call)
SIM is smart card and has memory chip permanently installed in plastic card
Type SMS storage
Contact Nos. storage
Charges Utility
8k 10-15 110-125 NA Prepaid-Postpaid
16k 15-25 125-250 100+ service tax Prepaid
32k 30-40 200-250 50+service tax Postpaid
64k 30-40 200-250 Specially loaded for group talk facility -FOC
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A smaller version of SIM ,called plug in SIM also available
TABLE 2.1
SIM FIG-2.1
SIM –Subscriber Identity Module (20 Digit)
89 91 24 00 00009040586 7
PIN
Personal Identification number – SIM security feature, a 4 digit Number, 1234 is a
default PIN .It is safe if the subscriber changes the number , one gets 3 attempts to enter
a correct PIN however it enter wrongly thrice it block SIM card temporarily & ask for
master PIN or PUK code.
PUK
Pin Unlocking key is an 8 digit number & is unique for each SIM card, subscriber cannot
change the PUK code number .It can viewed in BSCS .The subscriber has 7 attempts to
enter the correct PUK .if an incorrect PUK is an entered for over 7 times the card get
blocked permanently & subscriber has to go for an exchange the SIM.
PIN Ι Ι
PIN Ι Ι: Related to the handset 4090 (by default)
PUK Ι Ι
PUK Ι Ι: to unlock PIN Ι Ι 50900905 (by default) 8 digit.
DEPT.OF MANAGEMENT STUDIES Page 24 B.I.G.C.E.SOLAPUR
SIMDesignator
Country Code
Operator code
Switch code
Unique SIM No
Check Digit
UNIQUE SIM NUMBERPLATINUM PLATE
SOLAPUR UNIVERSITY, SOLAPUR
PIN Ι Ι / PUK Ι Ι: On 32k SIM is different & can be checked in BSCS & I care.
Mobile Number:
All Mobile No. in India 10 Digit the No. of a digit a mobile number has different
from country to country. Each digit has number denotes the following.
9848646400 / 9922646400 / 9824646400 / 9889646400
9 Stands for value added services like pagers and cell phones.
8/9 Stands for cellular telephony.
48/22/24/89 Stands for operator code “646400” is the mobile Number.
2.IDEA NET SETTER USB :(DATA CARD)
Idea Cellular has launched the new Net Setter EG612 USB Modem (usable with
both desktops & Laptops) with data, & SMS facility. It is a conveniently slim &
stylish solution for internet access on the move. USB modem is a dedicated data
access (GPRS) device to be used with desktops / laptops for wireless internet
(GPRS) access.
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Idea Net Setter is a terminal available for high-speed wireless network access,
with which the users can access the Internet in the wireless way at home, office,
outdoor sites and so on.
The Idea Net Setter supports the following standards:
Global System for Mobile Communications (GSM)
General Packet Radio Service (GPRS)
Enhanced Data Rates for Global Evolution (EDGE)
The Idea Net Setter supports the following services:
Data service
Short message service (SMS)
The EDGE peak rate and effective peak rate are 247kbit/s and 236.8 kbit/s
respectively; the GPRS peak rate is 85.6 kbit/s.The IDEA Net Setter is connected
to a portable computer or PC by a USB interface. In the service area of the
EDGE/GPRS/GSM network, user can wirelessly surf the Internet, send/receive
messages and emails. With the high speed, reliable performance, and easy
operation of the IDEA Net Setter, the users can enjoy much more in experiencing
network.
FEATURES
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GSM/GPRS/EDGE 850 MHz/900 MHz/1800 MHz/1900 MHz
Global roaming
GRPS/EDGE Class1~Class12
Data and SMS capabilities.
SMS services (group sending and editing the extra-long messages)
Plug & Play function, Zero CD installation
SIM-lock function
3.VEHICLE TRACKING SYSTEM
VTS enables businesses to keep track of their fleets of vehicles through a VTS unit
installed in a vehicle. VTS unit has a GPS device (to take the location coordinates),
GSM modem (which is programmed to initiate an outgoing SMS / GPRS session) and
a GSM SIM card.
The GPS receiver captures position data from the satellites, computes the position of
the vehicle and sends this information to a central base station, using SMS / GPRS.
This information is collected by web-server at the base station & location information
is plotted using GIS maps.
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Idea Cellular Ltd. plays the role of a carrier in this application. Hence, Idea’s scope
includes providing GPRS & SMS services with appropriate tariff. Providing hardware
for Vehicle tracking unit, software for input and output of data at the vehicle level as
well as at corporate customer’s end, and managing all allied services related to the
same falls in the scope of a vendor/service provider. This vendor is usually engaged by
the customer directly, though Idea can give recommendation of preferred partners.
4.BLACKBERRY SERVICE:
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BlackBerry
BLACKBERRY INTERNET SERVICE1. Meets the needs of individuals and smaller businesses
(does not require a messaging server or BlackBerry Enterprise Server)
2. No set up costs
3. No need for an IT department
4. Quick and simple set up!
5. Push technology
6. Option to add up to 10 email accounts
7. Work email account access
8. Email account settings and icons for each account
9. Optional BlackBerry email address
FEATURES
Save and edit attachments in their native file format
View HTML email messages
Integrate AOL® Mail and Windows Live™ Hotmail® accounts, which are now
consistent with other account integrations, such as Yahoo! Mail.
2.5. ORGANIZATION CHART
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CIRCLE HEAD
BOARD OF DIERECTOR
GENRAL MANAGER
SOLAPUR UNIVERSITY, SOLAPUR
2.6. BODY MEMBERS
Board of Directors
Mr. Kumar Mangalam Birla (Chairman)Mr. Arun ThiagarajanMs. Tarjani VakilMr. Mohan Gyani
Management Team
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DEPUTY MANAGER
REGIONAL MANAGER
ZONAL MANAGER
DISTRICT MANAGER
AREA MANAGER
TERRITORY MANAGER
SALES EXECUTIVE
SOLAPUR UNIVERSITY, SOLAPUR
A. Corporate Leadership Team
Mr. Sanjeev Aga, Managing DirectorMr. Akshaya Moondra, Chief Financial Officer Mr. Anil K. Tandan, Chief Technology OfficerMr. Prakash K. Paranjape, Chief Information OfficerMr. Pradeep Shrivastava, Chief Marketing OfficerMr. Navanit Narayan, Chief Service Delivery OfficerMr. Vinay K. Razdan, Chief Human Resource Officer Mr. Rajat K. Mukarji, Chief Corporate Affairs OfficerMr. Rajesh K. Srivastava, Chief Materials & Procurement OfficerMr. Ambrish Jain, Director - OperationsMr. Himanshu Kapania, Director – Operations
B. Circle Heads
Mr. Iyer Subbaraman S., Chief Operating Officer, Andhra PradeshMr. Atul Chaturvedi, Chief Operating Officer, Delhi & HaryanaMr. T. G. B. Ramakrishna, Chief Operating Officer, KeralaMr. Sashi Shankar, Chief Operating Officer, MumbaiMr. P.Lakshminarayana, Chief Operating Officer, Maharashtra & GoaMr. Virad Kaul, Chief Operating Officer, Uttar Pradesh (West) Mr. Naozer Firoze Aibara, Chief Operating Officer, Uttar Pradesh (East) Mr. Sunil Kataria, Senior Vice President - Operations, Rajasthan
TTOPICOPIC 3.T 3.THEROTICALHEROTICAL F FRAMERAME W WORKORK
3.1. INTRODUCTION
Brands have held a significant value beyond product and service offerings for a very long
time; a brand is repository of reputation for a company; it impasses the look and feel,
communication (by the company and by people about the company), and the overall user
performance (both physical and emotional) across the company touch points.
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Organizations develop brands as a way to attract and keep customers by promoting value,
image, prestige, and lifestyle. By using a particular brand, consumer develops positive
image about the brand.
Branding is a technique to capture consumers psychologically. Organizations are taking
advantage of psychology of human beings by developing attractive brands. Discuss four
brands.
Corporate branding in service sector is quite a difficult task. It is basically blend of
functional and emotional values. Like brand image is the central component of branding
as it reflects the meaning that consumers attach with the brand. And especially in service
sector there must be presence of corporate in service brands because service brand values
appear to be most salient for consumers at corporate level
The old saying that “a good product sells itself”. But now a day’s most of the
customers only use product/service for the brand. So brands are considered as key
organizational asset.
Excellent service is a profitable strategy because it results in more new customers,
more business with existing customers and fewer lost customers. Superior service quality
can help firms become more profitable and help them sustain a competitive advantage in
their served market. Service quality serves as a base for customer satisfaction and this
high level of satisfaction leads to customer loyalty and increased customer loyalty is the
single most driver of long-term financial health.
Organizations stress further on brands in order to achieve consumer loyalty and
trust because consumers are highly considered, but there is little knowledge available to
practitioners and academics about it brand is a vital interpreter of consumer loyalty
suggest that, when brand observed as totality, values, utilitarian and symbolic by
consumers, this creates loyalty in consumers.
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Price has been observed as an important element affecting products and services offered
by an organization. Pricing becomes more important for a new product or service.
Satisfaction is a highly important factor to predict price sensitivity of a mobile phone
consumer
3.2. CORPORATE BRANDING AND BRAND MANAGEMENT:
CORPORATE BRANDING
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“Corporate branding represents an opportunity for organizations to enhance and
sustain their distinctiveness through linking corporate characteristics to products
and services, thereby, allowing unique synergies to be developed”.
1. BRAND AWARENESS:
Brand awareness is the consumers ability to recognize or recall (identify) the
brand within a given product category in sufficient detail to make a purchase decision.
This also means that the consumer can propose, recommend, choose, or use the brand.
The objective of most advertising campaigns is to create and maintain brand preferences.
Brand awareness is equated with “Brand name recall” it consists simple identifying
features such as the logo. Consumer purchase decision is made weather is name
reorganization this influences the purchase decision.
2.BRAND ATTITUDES:
Brand attitudes is the consumer’s evaluation and expression of inner felling that
reflect the consumers is favorably or unfavorably pre deposited towards the brand. To
meet a need or want. This depends on three closely related components
1. cognitive (awareness, knowledge )2. affective (liking, preferences)3. behavioral (trail, purchase)
3. BRAND MANAGEMENT:
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Commitment for corporate branding is high in the sector of media and
telecommunication, especially among top level management. Brand management is an
integrated process which comprises of four main levels i-e planning, organizing, guiding
and controlling.
Planning is the most important factor for corporate branding for example branding team,
brand name decision, branding strategies etc.
Brand management depends upon innovation, in terms of better and smart services with
unique promotional mix, new prices and consumer demanded availability.
Brand is a very difficult task, there is no proper definition for the brand, and it can be
product, corporation, any person or any place.
3.3. FACTOR AFFECTING CUSTOMER PURCHASE PREFERENCE IN TELECOMMUNICATION
In mobile telecommunication, purchase settings are continuous and different than
the purchase settings of retails stores etc. In this industry most of the customers maintain
long term relationships with the operators. Where factors like trust, image, and
satisfaction are not easy to measure. But also factors like switching are easy to measure
because in this industry switching is more than simply walking to another Store.
A customer has brand building in his mind through the process of controlled and
uncontrolled communication.
Today, for every operator has critical question for its success is that how it can maintain
its current customers and how it can make them loyal to the brands. Loyal customers pay
important role in building businesses by making different moves like buying more, by
paying premium prices and most importantly providing companies different sets of new
customers by positive word of mouth.
In fact telecommunication companies lose their customer quite regularly. So it’s
very challenging task for the mobile phone operators to retain existing customers as well
as bringing new customers towards their brands and creating loyalty in them.
1. SERVICE QUALITY
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Service quality is the overall judgment of the customer about the excellence and
superiority of the service. As there are some basic attributes associated with service
quality like; services are intangible, services are heterogeneous (means that their price
often varies with respect to the provider and customer), services can not be stored means
that services are consumed with they are produced; it means services can not be separated
from their production. The degree of perceived risk is highest when customer can not
evaluate the service quality before purchasing.
Service satisfaction is among the most important factors which affect the customer
loyalty and buying behavior. It has a direct relationship between price of the product or
service being offered by a firm or Operator.
Improving service quality in the eyes of the customer creates “true customer” through
high customer satisfaction. Fundamental aim of every telecom operator is to seek and
manage customer satisfaction.
There are two main things that explain contribution of the service for the profitability of
the firm; first service quality and second service quality enhances the customer’s
inclination to buy again, buy more, to buy other services, to become less price sensitive
and to tell others about their favorable experiences All these have positive effect on
customer loyalty.
2. BRAND IMAGE
It is very fast era, in these days information about corporation and news from all over the
world can spread within few minutes which effects reputation of corporate image and
ultimately corporate brand. Corporate brand seldom convey the full and satisfactory
message to consumer. There must be a symbol associated with brand name so audience
has memorable associations. Brand manager needs to take a different view of
promotional activities of a particular brand, as consumer reacts differently, when he has
knowledge of a specific brand.
In corporate branding, corporate brand must be strong, have meaning, distinctive
associations and good reputation that a customer easily recognize. “Corporate identity
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should consistently relate to what is central to the organization and this can support
corporate branding” corporate image helps a firm to build up good
Reputation in the market and it is the trust of the customers with output of expected
attributes.
3. CUSTOMER LOYALTY
“A deeply held commitment to re-buy or re-patronize a preferred product/service
consistently in the future, thereby causing repetitive same-brand or same brand-set
purchasing, despite situational influences and marketing efforts having potential to cause
switching behavior”.
Corporate name recognition, the product image, corporate reputation and corporate
loyalty/commitment helps the consumer to value a product of a particular company. In
GSM mobile phone sector the main condition for protecting subscriber base is to win
customer loyalty. Customer loyalty is key necessity for maintaining brand’s life over a
long period. And to achieve this aim companies must measure customer satisfaction and
trust time to time.
Trust is a stronger emotion than satisfaction and that it may therefore better predict
customer retention. There exists a consistent relationship between service provider and
customer loyalty through trust. Trust is a process that is based on the ability of a party to
continually meet its obligations and on estimation of the costs versus rewards of staying
in the relationship. Therefore to trust a brand, customers should not only focus on the
positive outcomes delivered by the product/service brand but customer should also keep
it in mind that these positive outcomes will continue in the future. And this will also have
positive impact on the service provider.
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4. PRICE
In marketing research all P’s of marketing mix are important but to make it clear and
valid, involve only one P or maximum two Ps from marketing mix So this research
includes one P which is pricing and is more important in service sector, because
consumer have to pay every time when he/she consumes a particle service. So this is the
most critical factor in obtaining, more loyal customers. “There are several factors which
will probably influence your organization are pricing policy, factors such as, the
competitor’s price, the position of the product in the life cycle, company positioning
policy, perceived level of differentiation and perceived value and so on”.
4. A) PRICING STRATEGIES
There are three basic competitive strategies for pricing which are described by follow.
1- Cost leader ship- Cost leader ship is the first strategy to get the competitive
advantage. In this strategy leader set a price less than its competitors and making profits.
These profits are less but competitors are losing money, if they do not have cost equal top
leader. Cost leader has lower cost than other companies and high volume production is its
advantage. Companies also get competitive advantage through differentiation pricing
strategy.
2- Differentiation- The third competitive strategy is focused strategy. This strategy can
implement in a situation when a company has one particular segment and mainly this
strategy is used in niche marketing.
3- Focus- This strategy can implement in a situation when a company has one particular
segment and mainly this strategy is used in niche marketing.
This strategy is divided into two sub categories. One is focused cost leader ship and other
is focused differentiation, in focused cost leadership market leader has high volume
production which causes low cost and company y charge relatively low price of products.
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Focused differentiation Strategy, Company has some different feature then competitors in
a niche market or in a specific segment.
Following Seven other pricing strategies are available which are described by
1. Market skimming - Market skimming is a high price strategy which is mostly used
for a new product and has something innovative to market. Customers demand this
product/service even then, when price is high.
2. Market penetration- Market penetration strategy is used, when a company needs to
gain high market share and acceptance of product/service. In this situation price is set
slightly low than competitors.
3. Loss leader- Loss leader is a product, whose price is low, to attract customers for other
products in one place
4. Complementary pricing Complements are also products that are normally sold
alongside another product. And most of the time is free or having a nominal price.
5. Satisfying-There is a very thin profit in satisfying pricing strategy because in this
strategy price is set to earn very low profit in a high competition environment. Cost is the
key element in setting satisfying price. There is a little difference between cost and price
to be charged
6. Value pricing -Value pricing, name suggest that a customer is receive value from
product/service and willing to pay equal to value received.
7. Market pricing-Market price is set to by market; mainly depend upon the supply and
demand of market, which is usually used in agricultural products.
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If a service provider has larger net work then it has high market share. Price effect all
service providers but it effects more, when service providers have same coverage and
same services while Consumer has its own preferences in the process of choosing a
service. Larger network has advantage of on net discounts and also enjoy a high market
share. Price discrimination of on net discounts attracts more and more customers toward
on net discounts.
5. SWITCHING
Switching is basically the cost involved in switching from one service provider to
another. Switching cost is not only the cost in monetary terms but it can also be the sum
of economic, psychological and physical costs. This may also include the time involved
in switching from one service provider to another.
This switching cost stems from the buyer’s decision making process and the then
implementation of the decision. This five stage decision making process includes;
Need recognition
Information search
Evaluation of the alternatives
Purchase decision
Post purchase behavior
For example a customer considering switching cost should ideally evaluate operators
with regard to different criteria, such as coverage area, billing procedures, customer
services or added values, purchasing a new GSM service the customer wants to switch
the brand then he/she will compare the switched brand and the previous brand. Therefore
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if the switched brand is better than the previous brand then higher will be the alternative’s
uncertainty.
3.4.CUSTOMER PURCHASE CHARACTERISTICS
1. CULTURAL FACTORS
Each culture consists of smaller subcultures that provide more specific identification &
socialization for their members. Subcultures that include nationalities, racial group, &
Geographic regions other indicators such as occupation, education, and area of residence.
2. SOCIAL FACTORSSocial factors also influence the buying behaviors the factors such as Reference groups,
Family, & Social roles &Statuses.
3. PERSONAL FACTORS
Buyer’s decisions are also influenced by personal characteristics. These
include the buyer’s age and stage in the life cycle, occupation, economic circumstances,
and self-concept.
4. PSYCHOLOGICAL FACTORS:
Persons buying choices are influenced by four major psychological factors-
motivation, perception, learning, &attitudes.
PurchaserCharacteristics
PurchaserDecision Process
Purchaser Decisions
CulturalProblem Recognition
Product choice
SocialInformation Search
Brand choice
PersonalEvaluation of Alternatives
Dealers Choice
PsychologicalPurchase Decision
Purchase Timing
Post PurchaseBehavior
PurchaseAmount
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TABLE 3.1
TTOPICOPIC.4. D.4. DATAATA A ANALYSISNALYSIS A ANDND I INTERPRETATIONNTERPRETATION
Aurangabad is the target population. Questionnaire started with a basic question that
either he/she is a religion of an Aurangabad city or not with age and gender information.
The total sample population is in Aurangabad city. Out of 230 respondent, 122 (53%)
were female while 108 (47%) were male. Ratio of female and male is almost equal to
avoid biasness. According to research topic respondent were asked that do they have a
mobile phone connection and used four main service providers as reference. Out 230
respondent 100 respondents were using Idea cellular mobile phone connections.
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4.1. Table showing Market share of different Mobile Telecom companies in
Aurangabad city.
Sr.No. Name of Company No. Of. Respondent Percentage 1 Idea 100 44 %2 Airtel 55 24 %3 Reliance 25 11 %4 Vodaphone 40 17 %5 Tata Indicom 10 4 %Total 230 100%
TABLE 4.1
INTERPRETATION
From the above Table it is observed that 44% of the respondent using Idea cellular ,24%
of the respondents is using Airtel, 17% of the respondents are using vodaphone, 11% of
the respondents using Reliance were 4% of the respondents using the Tata Indicom
mobile connection.
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4.2. Table showing no. of customer’s given preference towards the Idea cellular ltd.
Sr.No. Opinion No. Of. Respondent Percentage 1 Company Name(Brand) 10 10 %2 Service and Quality 35 35 %3. Loyalty and Trust 15 15 %4. Price 40 40 %Total 100 100 %
TABLE 4.2
INTERPRETATION
From the above Table it is observed that 40% respondent given preference to price ,35%
of the respondents given preference towards Service, 15% of the respondent given
preference towards Loyalty and Trust and only 10% of the respondents given preference
towards companies Brand of the Idea cellular ltd.
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4.3. Table showing no. of customers given preference to mode of accessing information about SIM card of Idea cellular ltd.
Sr. No. Mode of access No. Of. Respondent Percentage 1 Internet 35 35%2 Dealer 40 40%3. Advertising 20 20%4. Existing user 5 5%Total 100 100%
TABLE 4.3
INTERPRETATION
From the above Table it has been observed that 40% of respondents are getting
information from dealer, 35% of respondent are getting information from Internet, 20%
of respondent are getting information from Advertisement were 5% of respondent are
getting information from existing customer of a Idea cellular.
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4.1. Graph showing no. of customers given importance towards services offered by Idea cellular ltd.
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GRAPH-4.1
4.4. Table showing no. of customer satisfaction level towards Brand as Idea cellular ltd.
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Sr. No. Choice No. Of. Respondent Percentage 1 Satisfied 59 59%2 Dissatisfied 41 41%Total 100 100 %
TABLE 4.4
INTERPRETATION
From the above Table it is observed that 59% of the respondents are satisfied were 41% of respondents are dissatisfied with brand of Idea cellular ltd.
4.2. Graph showing no. of customer’s opinion about quality of Idea cellular services.
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GRAPH-4.2
4.5. Table showing no. of customer’s opinion about loyalty preference of Idea cellular ltd
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Sr. No. Opinion No. Of. Respondent Percentage 1 Brand 09 09%2 Service 36 36%3 Both 55 60%Total 100 100 %
TABLE 4.5
INTERPRETATION
From the above Table it is observed that 55% of respondent given preference to Brand as well as Service,36% of respondent give the preference service were remaining 9% of respondent shows there preference Brand of idea cellular ltd.
4.3. Graph showing no of customers given preferences towards price or brand while
making a purchase decision.
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GRAPH-4.3
4.4. Graph showing no. of customers having impact of price while purchasing Idea cellular service.
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GRAPH-4.4
4.6. Table showing customer’s loyalty period for using Idea cellular service
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Sr.No. Period No. Of. Respondent Percentage 1 One year 12 12%2 Two Year 10 10%3. Three Year 18 18%4. Four year 16 16%5 Five and more year 44 44%Total 100 100 %
TABLE 4.6
INTERPRETATION
From the above Table it has been observed that the 43% of respondents using this Brand
form more than 5 years, 17% of respondents using since 3 years, 16% of respondents
using this service from 4 years and 12% of respondents were using this facilities from 2
years, were remaining 10% respondent were using this service from last 1 year.
4.7. Table showing the no. of customer’s opinion about switching to other companies network
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Sr. No. Choice No. Of. Respondent Percentage1 Yes 64 64%2 No 36 36%Total 100 100 %
TABLE 4.7
INTERPRETATION
From the above Table it is observed that 64% of the respondents replied YES for
switching of other network were 36% of respondents said NO.
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4.5. Graph showing no. of customer’s opinion about switching from the existing Brand of Idea cellular.
GRAPH-4.5
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TTOPICOPIC.5..5. FINDINGS AND OBSERVATIONS
After analyzing and interpreting the data obtained through questionnaire and personal
interview, the following points were found out
1. It is being observed that in telecom battle day by day Idea cellular is increasing its
subscriber in the Market.
2. It is being observed that Idea cellular having good Brand Image in the market
due to effective services, so the most of the market share is captured by Idea
cellular in Aurangabad city.
3. It is being observed that most of the customers can switch due to Promise breakage,
Less services quality, Charge high price as compare to other network.
4. It is being observed that most of the customers are price sensitive because most of
the customer gives preference only price, they avoid giving preference to loyalty
and trust about the Idea cellular services.
5. It is being observed that majority of customer are given preference to price then service
and quality and lastly Brand at the time of Purchases Idea cellular service. It means
customer don’t give priority to Brand.
6. It is being observed that few of the customers are perceived Idea cellular services
are charging high prices as compare to other competitors.
7. It is being observed that most of .Customers given preference to mode of accessing
information through Dealers about SIM card of Idea cellular ltd.
8. It is being observed that most of Customers using Idea cellular ltd from last five years
and they are satisfied about the Brand, Service, and Price also.
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TTOPICOPIC.6..6. SUGGESTIONS
1. Since the competition in the telecom market is increasing at a fast rate, it has become
necessary to not only cope up with the competitors, but also find a way to go far ahead of
them.
2. Because of only one fixed tariff plan, many of the potential customers are moving to
other competitors; such as Vodafone and Airtel, as they have better plans in cheap rates.
So for Idea cellular service is necessary to come up with different plans which could
capture all the potential customers and also could churn the customers from other
competitors to Idea cellular’s network.
3. To keep a good database (sales leads) of potential customers and trying to convert those
by keeping a constant follow up and providing good plans.
4. Today’s area T.V and F.M. are becoming most popular media for Advertising so Idea
cellular may shows their Advertisements of Value Added services(VAS) as well as
Plans, as this will give more return on advertisement spending.
5. Most of the customers don’t want company’s promotional calls and messages, so it is
advisable to activate DND facilities for such customers at the time of purchase itself.
6. Most of the customers are not getting the Low price vouchers in nearby stores, so
Voucher cards should be made available in all the retail shops on time for customer as per
their convenience.
7. Company can Lunches new plan(offer) for attracting youngsters like as provide free SIM
for College student with minimum recharge from that company share can increase.
8. Even though the company has some offers or other value added services, it can be well
known by the sales people. So it is better to provide adequate training to the sales people.
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9. To ensure better customer satisfaction & maintain higher level of Customer relationship
management, the billing department has to be more effective & efficient.
10. Most Important Thing is that company may reduce SMS Charge for attracting Young
generation because for sending Single SMS only 1kb Memory is used and it will be send
in less than 1sec. for following this there is no loss for Idea cellular.
11. The company should highlight about the value added services in the advertisements at
local level.
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BIBLIOGRAPHY
A. Primary data:
Questionnaire
Interview
Survey
B.Secondary data :
Books Author
Service Marketing –S.M.Jha
Marketing Management – Philip Kotler
Research Methodology – C.R. Kothari
Advertising, Sales and Promotion – S. A. Chunawalla
Magazines – 4 P’s of Marketing
(July -2009)
– Tele Marketing Prakriya
News papers – Business Line
– Times of India
Websites http:// www.ideacellular.com
http:// www.google.com
http:// www.whereis.doc.com
http://www.marketingwords.com
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