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INDEX
1.COMPANY PROFILE
2.HISTORY
3.MOBILE SERVICES CIRCLES
4.MARKETING STRATEGY
5.DISRUPTIVE INFORMATION
6.PRICING STRATEGY
7.COMPETITORS ANALYSIS
8.ADVERTISING
9.SWOT ANALYSIS
10.CONCLUSION
COMPANY PROFILE
TATA DOCOMO is Tata Teleservices Limited's TTSL telecom service on the
GSM platform arising out of the Tata Group's strategic alliance with Japanese
telecom major NTT DOCOMO in November 2008. Tata Teleservices has
received a pan-India license to operate GSM telecom services, under the brand
TATA DOCOMO and has also been allotted spectrum in 18 telecom Circles.
TTSL and has already rolled out its services in various circles.
The launch of the TATA DOCOMO brand marks a significant milestone Indian
telecom landscape, as it stands to redefine the very face of telecoms in India.
Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in
the Japanese market, the company is clearly the preferred mobile phone
service provider with a50 percent market share.
NTT DOCOMO has played a major role in the evolution of mobile
telecommunications through its development of cutting-edge technologies
and services. Over the years, technologists at DOCOMO have defined industry
benchmarks like 3G technologies, as also products and services like the i-
mode TM, mobile payment and a plethora of lifestyle-enhancing applications.
Today, while most of the rest of the industry is only beginning to talk of LTE
technology and its possible applications, DOCOMO has already started
conducting LTE trials in physical geographies, not just inside laboratories!
DOCOMO is also a global leader in the VAS (Value-Added Services) space, both
in terms of services and handset designs, particularly integrating services at
the platform stage. The Tata Group-NTT DOCOMO partnership will see
offerings such as these being introduced in the Indian market under the TATA
DOCOMO brand.
TATA DOCOMO has also set up a 'Business and Technology Cooperation
Committee, comprising of senior personnel from both companies. The
committee is responsible for identification of the key areas where the two
companies will work together. DOCOMO, the world’s leading mobile operator
will work closely with Tata Teleservices Limited management and provide
know- how on helping the company develop its GSM business.
Despite being a late entrant, Tata Indicom, TTSL's CDMA brand, has already
established its presence and is the fastest-growing pan-India operator.
Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x
technology platform in India. Today Tata Teleservices Limited, along with
Tata Teleservices (Maharashtra) Ltd, serves over 37 million customers in
more than 320,000 towns and villages across the country offering a wide
range of telephony services including Mobile Services, Wireless Desktop
Phones, Public Booth Telephony and Wire-line Services.
HISTORYTata Teleservices Limited now also has a presence in the GSM space, through
its joint venture with NTT DOCOMO of Japan, and offers differentiated
products and services under the TATA DOCOMO brand name. TATA DOCOMO
arises out of the Tata Group’s strategic alliance with Japanese telecom major
NTT DOCOMO in November 2008. TATA DOCOMO has received a pan-India
license to operate GSM telecom services—and has also been allotted spectrum
in 18 telecom Circles. The company has rolled out GSM services in 14 of
India’s 22 telecom Circles in a quick span of under six months. The company
plans to launch pan-India operations by the end of FY 2009-10.TATA
DOCOMO marks a significant milestone in the Indian telecom landscape, and
has already redefined the very face of telecoms in India, being the first to
pioneer the per- second tariff option-part of its ‘Pay for What You Use’ pricing
paradigm. Tokyo-based NTT DOCOMO is one of the world’s leading mobile
operators-in the Japanese market, the company is the clear market leader,
used by over 50 per cent of the country’s mobile phone users.
VISIONWe will leverage our strength in executing complex global- scale projects to
make leading edge information and communication servies affordable by all
individual consumers and business in india. We will offer unparalleled value
to create customer delight and enhance business productivity. We will also
generate value for our capabilities beyond indian borders while enabling
millions of India’s knowledge workers to deliver their services globally.
Currently, Tata Docomo mobile services available in these following circles:
Bihar & Jharkhand
Tamil Nadu
Orissa
Andhra Pradesh
Karnataka
Kerala
Kolkata
Maharashtra & Goa
Madhya Pradesh
Chhattisgarh
Haryana
Chennai
Eastern Uttar Pradesh
Western Uttar Pradesh
Punjab
Rajasthan ,Recently Launched
Rest of West Bengal, Recently Launched.
MARKETING STRATEGY
Tata Docomo appears to be banking heavily on its tariff plans – the company
is offering a 1 second pulse instead of the usual 1 minute pulse that other
telecom operators are offering. This means that consumers are charged on a
per second basis, instead of a per minute basis, and end up saving money on
unused seconds. A nifty little application “How much can you really save” on
Docomo’s website explains how this works. Rs. 0.01/second is a marked
change from the Re 1/min and Rs. 0.49/min charges that usually applies.
MARKETING MIX
4P’S OF MARKETING MIX :
Product
Price
Place
Promotion.
PRODUCT :
TATA DOCOMO having good range of services. Tata Docomo provides both
postpaid and prepaid services. Tata Docomo having good quality network
which provides clarity in voice.
PRICE :
It having attractive tariff plan: TATA DOCOMO having 1paisa /sec it is
applicable forboth prepaid and postpaid.
PLACE:
It having good range of channels of distribution: As Tata already exist in
this field of telecommunications as Tata Indicom. It has wide range of
channels of distribution to sell TATA DOCOMO services.
PROMOTION :
Advertising: TATA DOCOMO following different style of advertising
pattern in TV’and newspapers. Due to that reason it was reaching public very
fast.
Disruptive Innovation in the Indian Telecom Industry by Tata DoCoMo
Wikipedia defines disruptive innovation as an innovation that improves a product or service in ways that the market does not expect, typically by being lower priced or designed for a different set of consumers. Indian Telecom space was “disrupted” by Tata DoCoMo when they came out with a ‘1 paisa per second’ tariff.
We’ve earlier seen how Reliance India Mobile changed the mobile industry by coming up with the lowest tariff in the beginning of this decade. The call charges were around Rs 2-3 per minute and because of Reliance this was brought down to around Re 1 per minute.
Tata DoCoMo was the next one to employ disruptive innovation in the Indian mobile industry. Currently the game is not played on the price front but Value added services front, which is evident from the advertisements of Airtel (Madhavan and Vidya Balan) and Vodafone (Zoozoos) in the past. If Aircel is redefining how telecom operators approach value added services and GPRS in India, Tata DoCoMo is doing its bit to change billing practices. The joint venture between Tata Teleservices and Japanese telecom major NTT DoCoMo officially began rollouts with a plan to invest $2 billion for its pan-India GSM services.
TATA DOCOMO PRICING STRATEGY
Tata DoCoMo appears to be banking heavily on its tariff plans – the company offers a 1 second pulse instead of the usual 1 minute pulse that other telecom operators were offering. This means that consumers are charged on a per second basis, instead of a per minute basis, and end up saving money on unused seconds. A nifty little application “How much can you really save” on DoCoMo’s website explains how this works. Rs. 0.01/second is a marked change from the Re 1/min and Rs. 0.49/min charges that usually apply. Now while this plan might sound unique, it isn’t that it hasn’t been tried before: back in 2004, Tata Indicom had launched 1 second pulse plans, which going by their current plans, appears to have been shelved. At present, Tata DoCoMo has launched voice portals, 24-hour music, cricket commentary and voice chat, apart from offering free Missed Call Alerts and VoiceMail. Interestingly, voice based services are also being priced with a per-second-pulse: 24 hour music and voice chat are priced at Rs. 0.02/second. Caller Tune search service ‘Genie’ is also being priced at Rs. 0.02/second. This is a marked change, again, from the per minute pricing, and can offer consumers cheaper options.
An initiative that has taken the service provider industry by storm
The pay per second model has really paid off well for the latest entrant in the Indian GSM space, Tata-DoCoMo. The new pricing strategy from Tata-DoCoMo has changed the rules of the GSM game, which is dominated by AirTel and Vodafone. Tata-DoCoMo also launched its first mobile handset in September 2010.
Mobile pricing innovation – Tata DoCoMo now charges per website for Mobile Browsing!
This is surely a first world over – Tata DoCoMo have gone ahead and launched an innovative mobile Internet offering which allows users unlimited usage of their favourite websites on mobile for a fixed cost. Tata DoCoMo has been forefront in coming up with various attractive pricing schemes, especially, in the pay-per-use paradigm. They were first to introduce pay per second billing on calls, which now is followed by every mobile service provider. They followed it with pay-per-minute and pay-per-call pricing plans as well which has made them one of the fastest growing Mobile companies in India.
The new pay-per-website offering however, takes it to a complete different level and unheard of pricing strategy. This is a very thoughtful strategy and something which has potential to growth rapidly. Tata DoCoMo pricing strategy.
Pay per site offer two combination: Those only interested in single websites need to pay Rs 10 per site Those with multiple site browsing needs can opt for a combo pack at
just Rs 25 per month.
Customers have a bundle of options within various categories of social networking sites (Facebook, Twitter, Linked-In, Orkut), mail options (Gmail, Yahoo, Rediff) and chat messengers (GTalk, Yahoo! Messenger, Nimbuzz). Having said this, there is also a caveat – If you thought it was valid for unlimited use…it is not.
Tata DoCoMo pay per site plan categorizes each service under 2 different genres – Social Networking Site and Emailing & Instant Messaging. Each site under this genre is priced at Rs. 10/- bundled with 200 MB free data usage valid for 30 days, post which customers will be charged at 1p/kb. There are also 2 Combo options – SNS Combo Pack and Emailing Combo Pack and each Combo Pack is priced at Rs. 25/- bundled with 500 MB free data usage post which the customers will be charged 1p/kb. We have been quite impressed the way Tata DoCoMo have gone about their innovative pricing models as well as marketing strategies.
“Per Character” SMS PricingOn 8th September 2009, the GSM branch of the Indian carrier Tata introduced a novel pricing strategy for text messaging. Under the brand “Diet-SMS“, Tata-DOCOMO bills its customers “by-the-character”, rather than on a per message basis.
It is a very attractive marketing scheme, since many wireless subscribers, almost by habit, tend to pepper their text messages with abbreviations and acronyms.
Under the new plan, Tata-DoCoMo charges “one paisa per character”. For example, a text which reads “tnx” (for “thank-you”) is charged at 3paise instead of the normal sms charge.
The Impact
Tata DoCoMo has gathered significant market share, owing to its pricing strategies.
Existing mobile operators are matching the price and the clear winners are the subscribers since all the competition is sending the prices downhill. Tata DoCoMo pricing strategy.
Competitor Analysis
The competition has intensified the past few months with new
players and schemes coming in. There has never been a better time
for the customer to get a mobile phone connection
There are at least six if not more operators to choose from in ever circle. In June 09, TATA DOCOMO broke the old system of tariff by introducing per second billing system. As soon as they did this, the other followed suit with price cuts everywhere. Suddenly the idea of calls being free was not so outrageous. The prices were reduced to such an extent that the viability of the business was in questions. The competitive environment of TATA DOCOMO can be looked at from the following perspectives
Market share
The government issued fresh licenses in 2008.As a result of this the
market gets crowded though incumbents still hold larger market shares‟
are shown above. However a point to note is that the new players have
lower entry costs with very deep pockets. They also have no legacy
issues like the older players and hence are more adept to changes
market situations. The cost of infrastructure has reduced dramatically
due to the market growth and DOCOMO had an advantage here.
MARKET CAPITALISATION:
As profits margins are becoming thin, the market capitalization of listed
telecom companies has fallen. Though there have been some signs of
recovery
ADVERTISING MEDIA CHANNELS :
India - Tata Docomo, the youngest among telecom players in India to offer
GSM, is Presently banking on its services to garner visibility and a share in the
telecom pie. The launch of Tata Docomo also announced the intention of the
brand to associate with the thought 'do'. Tata Docomo, for the first time in the
country, offered pay-per-second billing; though other telecom providers have
followed suit since. The company has carried out a few adverts that highlight
the brand's unique features and some other topical advertising during Ganesh
Chaturthi and Diwali. The latest from the GSM provider is the 'Friendship
Express' TVC. The ad opens inside train, where everyone is doing their own
thing. A couple of the travelers don't like the solemn mood and start humming
the Docomo tune. Slowly and steadily, others pitch in and soon most of the
train is singing along. The ad ends with the super, 'Why walk alone when we
can dance together'.
TataDoCoMo launched ‘ Keep it Simple’ campaign with Rabir
Kapoor!
Cutting through the clutter that the Indian telecom landscape finds itself in—
with customers forced to jostle with confusing and complicated products,
services and tariff plans—Tata DOCOMO is ‘Doing the New’ again, with the
launch of its new brand campaign, aptly titled ‘Keep It Simple’. Tata
DOCOMO’s unique Keep It Simple Campaign is in a form of a stand-up comedy
show with many episodes, which will be aired during the course of this IPL
season. It focuses largely on how Tata DOCOMO simplifies the telecom
experience, and hence the consumer’s life, by providing differentiated
products and services. Each individual advertisement starts by illustrating a
complexity in the category, and presents the Tata DOCOMO product and/or
service as a means of simplifying things. This campaign is simple, captures the
various moods of Ranbir—depicting those of Tata DOCOMO.
SWOT ANALYSIS
STRENGTH
WEAKNESS
OPPORTUNITIES
THREATS
STRENGTHS:-
First to introduce seconds’ tariff plan (seconds pulse)
Good brand image of Tata services
Having large variety of plans
Plans are affordable by any common person.
TYPE :
Pulse rate 1 sec
Price pack Rs.49
Validity life long
CALL RATES:
Local rates paisa/sec
Tata Docomo 1
Tata CDMA 1
Other GSM 1
Landline/CDMA 1
STD rates
Tata Docomo 2
Tata CDMA 2
Other GSM 2
WEAKNESS:-
Signal strength.
Postpaid connections are not available as of now.
Customer services are not satisfactory.
Concentrating only on rural areas.
OPPORTUNITIES:-
Have a great opportunity to expand its services.
To introduce any new plans for internet users.
Introduce 3G compatible services.
To introduce new combined plans like, SMS, Internet, Calling integrated
offers.
THREATS:-
If signal strength is not increased it may lead to change in the network
service by the customers.
Tata has to clarify whether this 1ps/sec will continue till its lifecycle.
Heavy competition from all other network providers.
Self Analysis
TATA DOCOMO is positioned as a very youthful brand. Like today s ‟youth that wants to break the rules, TATA DOCOMO also wants to change the set paradigms. They are projecting themselves as brand that breaks through the clutter and tries to simplify things. In the telecom market, the tariff is rarely a point of differentiation and is saturated. However TATA DOCOMO„s main differentiating factor was the per second billing. Currently, the tariff scene in India is very complicated; so many schemes, different tariffs, various plan offerings, for consumers it is a humungous task to sift through all and find the right scheme. They just have one plan, be it off network or on network, STD, ISD. Apart from that they also have differentiate themselves on VAS platform. In the VAS space also we would replicate the pay per second model, which is in line with our strategy to simplify.
Conclusion
The only understanding of the Brand Identity Implementation can be gained
from actual market results of the brand once it is launched. It can be observed
that the brand though not widely available across India has been widely
accepted as a Giant Killer. It has made the major players of the industry sit up
and relook at their strategies. It can be gained that the industry is currently in
turmoil due to the continuous focus of capturing an increasing pie of the
expanding market. But it should be understood that only those players with
understanding of the market and the ones who can capture the consumer s ‟
imagination will continue to survive and prosper in the long run. TATA
DOCOMO revolutionized the billing system in the country with per second
billing but it needs to continuously adapt itself to the changing environment in
order to come out as the eventual winner.