Professional Documents
Culture Documents
ON MARKETING MANAGEMENT
OF IDEA CELLULAR LTD.
PROJECT REPORT
UNDER THE GUIDANCE OF
Mr. /Mrs.Jaideep Jejurikar
NOVEL INSTITUTES OF BUSINESS MANAGEMENT AND
RESEARCH CHINCHWAD, PUNE
SUBMITTED BY
PRADEEP J. JADHAV
ROLL NO:
BECHLOER OF BUSINESS ADMINISTRATIONBBA: 2010-2013
Mr.Shailesh Lele
(Asst. Director)
Dipali Chavan
(HOD)
Internal Examiner
Jaideep Jejurikar
(Project Guide)
External Examiner
ACKNOWLEDGEMENT
I wish to take the opportunity to express my gratitude towards Mr. Shailesh Lele
(Assistant Director of Novel College of BBA & BCA) and Prof. Mr. Jaideep
Jejurikar (Internal guide) who has provided me with constant guidance and support
throughout the project.
DECLARATION
I, the undersigned Mr. Pradeep Jadhav hereby declare that the project on MARKETING
RESEARCH OF IDEA TELECOMMUNICATION SERVICES FOR IDEA, S CUSTOMMER
has been
successfully completed in Idea Cellular Ltd. undertaken during the period of date of first visit to
last visit is the result of my own efforts and the same has not been previously submitted to any
examination of the Pune University or any other University.
INDEX
SR. NO
TITLE
1.
Introduction
2.
Executive Summary
3.
Company Profile
4.
Product Profile
5.
6.
Literature Review
7.
Research Methodology
8.
9.
Observation
10.
Suggestion
11.
Conclusion
12.
Limitation
13.
Bibliography
14.
Questionnaire
EXECUTIVE SUMMARY
The next few pages of this report tell about one of the innovative firms in the Indian telecom
industry. IDEA Cellular is a leading GSM mobile services operator in India with over 53 million
subscribers, under brand IDEA. IDEA Cellular is a publicly listed company, having listed on the
Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March2007. A
frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of
offering the most customer friendly and competitive Pre Paid offerings, for the first time in India.
Ideas missionWe will delight our customers while meeting their individual communication needs anytime,
anywhere. Ideas mission tells us what they are and what they are doing at the present. Their
values are Integrity, commitment, passion, seamlessness and speed are in perfect. Their values
are in perfect sync with their mission because these values are of paramount importance for the
successful achievement of their mission. Ideas SWOT shows us that their parent company
(Aditya Birla), existing footprint and that obsession for innovation are their major strengths
while their concentration on a few circles, their late entry into many new circles and high debtequity ratio can be cited as their weaknesses.
Falling regulations, growing rural market and 3G services are the factors that bring new
opportunities for Idea. New entrants (ever increasing number of telecom operators in India) and
new technology (can be an opportunity as well) pose threats for Idea. External environment
analysis shows that competitive rivalry is very high, bargaining power of customers is high,
bargaining power of suppliers is low, threat from new entrants and substitutes are also high. This
clearly reveals the fact that Idea is in an extremely competitive environment. E.g. the ongoing
tariff war in the highly competitive Indian telecom market has been taking new shape with every
passing day and it has reached new heights now. Operators have been announcing new
promotional schemes including reduction in tariffs for voice call, slashing roaming charges and
many more such lucrative offers. Recently floated idea of per second call rates has further
aggravated competition among telecom players with every operator seemingly imitating others
for retaining their market share. Telecom sector is all set to see more severe competition. New
entrants, falling tariff rates, new technology and new regulations (mobile number portability) are
going to cause big changes to this sector. In such a situation the way forward for a player like
Idea, who is not the market leader, is not to initiate a price war but to concentrate on new
differentiated products and services.
COMPANY PROFILE
COMPANY PROFILE
7
The telecom industry is one of the fastest growing industries in India. India has
nearly 200 million telephone lines making it the third largest network in the world
after China and USA. With a growth rate of 45%, Indian telecom industry has the
highest growth rate in the world .Much of the growth in Asia Pacific Wireless
Telecommunication Market is spurred by the growth in demand in countries like
India and China. Indias mobile phone subscriber base is growing at a rate of
82.2%.China is the biggest market in Asia Pacific with a subscriber base of 48% of
the total subscribers in Asia Pacific. Compared to that Indias share in Asia Pacific
Mobile Phone market is 6.4%.Considering the fact that India and China has almost
comparable populations, Indias low mobile penetration offers huge scope for
growth.
History of Indian Telecommunications:
Started in 1851 when the first operational land lines were laid by the
government near Calcutta (seat of British power). Telephone services were
introduced in India in 1881. In 1883 telephone services were merged with the
postal system. Indian Radio Telegraph Company (IRT) was formed in 1923.After
independence in 1947; all the foreign telecommunication companies were
nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by
the government's Ministry of Communications. Telecom sector was considered as a
strategic service and the government considered it best to bring under state's
control. The first wind of reforms in telecommunications sector began to flow in
1980s when the private sector was allowed in telecommunications equipment
manufacturing. In 1985, Department of Telecommunications (DOT) was
established. It was an exclusive provider of domestic and long-distance service that
would be its own regulator (separate from the postal system).In 1986; two wholly
government-owned companies were created
11
Idea Cellular is a part of the US $24 billion Aditya Birla Group and a leading
GSM mobile services operator with licenses to operate in 13 telecom service areas
in India. The company has operations in Delhi, Himachal Pradesh, Rajasthan,
Haryana, Uttar Pradesh (W) & Uttaranchal, Uttar Pradesh (E), Madhya Pradesh&
Chhattisgarh, Gujarat, Maharashtra & Goa, Andhra Pradesh and Kerala with the
planned expansion into Mumbai, Bihar &Jharkhand. Ideas footprint will cover
nearly 70 percent of Indias telephony potential. Idea Cellular had 16.13 Million
subscribers as on June30, 2007, and had a market share of 15.4 percent as on June
30, 2007 in its 11 service areas of operation.
ENVIROMENTAL SCANNING
12
Political Factors:
Neglected area has been non-existence of any guidelines for installation of towers
in every nook and corner of the country. In our endeavor to grow, proper attention
is missing for safety associated with towers. Lots of towers in India have been
installed on roof tops of weak and unsafe buildings. During construction, hardly
anybody has planned for towers on roof tops.It are unexpected that the structure
feasibility of all buildings is undertaken before towers are installed. There are cases
where more than two or even three towers have been installed at a single location
ECONOMIC FACTORS
13
1. Income group:
Now a day, lower class people also use mobile phones. And idea sim card is
affordable by any class.
2. Price elasticity:
Demand of idea sim-card is increasing day by day so the price of idea sim card is
decreasing.
Social Factors:
Especially idea cellular provides many offers which attracts customer of all age
groups. For example, sms offers can easily attract youngsters. And people who are
using idea sim-card, can talk at very less call rate. So most of people use this
product.
Idea cellular limited has many big names and good brand image so bulk of the
people use idea sim-cards.
Good advertisement always attracts people & idea cellular limited introduces
new and attractive advertisement regularly and have celebrity as their brand
ambassador like Abhishek Bachchan, so it is a big factor.
TECHNOLOGICAL FACTORS
14
Initially the memory of sim-card for contact saving was less, but now a days we
can get more memory in that.
now there are facilities of GPRS is also available in Idea sim-card.
Demographic Factors:
1. Gender:
This is used by both males and females.
2. Age group:
Mostly we see that mobiles are used by all age group from teenagers to older ones.
3. Population:
We know that if the populations increase, the use of cell phone will also increase.
4. Occupation:
This is used by the entire person. So occupation is not affecting on it.
5. Income:
Now a days income factor is not affecting to this. Because it is available at very
cheap price now.
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Step 1: Define the problem, the decision alternatives, and there search
objectives
There are many brands available in market like Airtel, Vodafone, Tata, Reliance
and Virgin. So, if any of these mobile operators give new schemes in less price
then customers easily get attract from the scheme and switch over from our brand.
16
Sampling plan:
After deciding on the research approach and instruments, the marketing researcher
must design sampling plan. These call for 3 decisions.
Probability sample:
It means he gives equal chance to all the respondents.
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QUESTINNAIRES
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Yes
No
6) Do you use Idea sim-cards?
Yes
No
7) Do you want to buy Idea sim card?
Yes
No
Cant say now
8) Which factor do you considered while buying Idea Cellular Limited?
Network
Schemes
Brand image
Call Charges
If other than please specify
9) From how long do you use Idea sim-card?
Less than a year
1 to 3 year
More than 3 years
Yes
No
11) Do you face network problem any time?
Sometime
Never
Often
12) In which area of service in idea sim-card do you want to improve?
Network
Quality
Schemes
Call Charges.
13) Do you satisfied with the service of Idea Cellular Limited?
Yes
No
14) If not than give the suggestions for improvement.
Name: .Sex: .
Age:..Qualification: .
Contact No:
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Penetrated Market:
22
Penetrated market is set of consumers who are buying the companys product. As
the Idea Cellular made its effort on small villages and some particular areas and in
India most of the people especially young generation wants new schemes and less
call rates and also new sms schemes and Idea Cellular provides all these facilities
in lower cost as compare to other one. So the penetrated market of the Idea
Cellular is also large.
Estimating Current Demand:
Researcher is now ready to examine some of methods for estimating current
market demand. Marketing executives want to estimate total market potential, area
market potential and total industry sales and market share.
Total Market Potential:
Total Market Potential is the maximum amount of sales that might be available to
all the firms in an industry during a given period, under a given level of industry
marketing effort and environment conditions. A common way to estimate total
market potential is as follows:Total Market Potential = Potential No. of Buyers
X
Average Quantity Purchased By a Buyer
X
Price
For e.g.: Total Market Potential = 20000 buyers X 1 sim-card X Rs. 30= Rs.
6, 00,000 Total Market Potential
Companies face the problem of selecting the best territories and allocating their
marketing budget optimally among these territories. Therefore, they need to
estimate the market potential of different districts, towns, cities, states, and nations.
Two major methods of assessing area market potential are available: the market
builds up method, which is used primarily by business marketers, and the multiplefactor index method, which is used primarily by consumer marketers. The marketer
has decided to use Market-Buildup Method as this method gives accurate result.
24
Family:
25
The family is the most important consumer buying organization in society, and
family members constitute the most influential primary reference group. In family
if some one using the service of Idea Prepaid Sim-card than the other members is
influenced by the family members and also use the service of Idea Prepaid Simcard.
Status:
One of the advertisement campaigns is
An Idea Can Chang Your Life
. From this campaign many high level people and also politicians using Idea
Prepaid Sim-card because of adding value in their status. So status also affect in
increasing in demand.
Personal Factors: Age and stage in the life cycle:
This affects much when students in their schooling they dont want much
services and schemes in prepaid sim-cards, but after passing their schooling they
entered in college and so that at that time they wants more services and schemes in
reasonable price for connecting with friends and relatives or increase their
contacts. So this factor is much affects on demand of Idea Prepaid Sim-card.
Occupation and economic circumstances:
This also affects the demand because in any occupation company have a more
contacts with customers, suppliers etc. so that they wants to connected with their
suppliers and customers and so that they want less call rate in reasonable price.So
occupation and economic circumstances are also affects the demand of the Idea
Prepaid Sim-card.
This has also affect on the demand of the Idea Prepaid Sim-card because a person
has its own view point of selecting the product and if does not like the Idea Prepaid
Service he may switch over to the other prepaid sim-card.
Lifestyle and values:
It also affects the demand of the Idea Prepaid Sim-cards because persons lifestyle
and its value play a great role in choosing any product.
27
Education:
28
Education does not affect the segment of the Idea Prepaid Sim-card because Idea
Prepaid Sim-card has been used by educated people as well as uneducated people.
Psychographic:-Lifestyle:
Lifestyle also affects in segmenting the market. So the marketer while segmenting
the market of Idea Prepaid should keep this in his mind, because high class people
also using this service.
Personality:
Personality does not affect the Idea Prepaid Service in segmenting his market.
Behaviour:
Behavior does not affect in segmenting the market.
29
There are six main criteria for choosing brand elements. The first threeMemorable, Meaningful, and likeable are brand building. The latter three are
Transferable, Adaptable, and Protectable are defensive.
Memorable:
How easily is the brand element recalled and recognized?
Idea Cellular is having a reputed telecommunication Service and having a good
logo. Idea Cellular Service has a good punch line
An Idea Can Change Your Life and For the People, By the People
Which is very easy in recall it.
Meaningful:
Is the brand element credible and suggestive of the corresponding category?
Idea Cellular Service is having a punch line
An Idea Can Change Your Life
Means new ideas gives you new life for enjoyment and success.
Likable:
Idea Prepared sim-card liked by most of the people and most of the people wants to
use it because of good service provide by them in affordable price.
Adaptable:
Idea Cellular Service is providing two services i.e. prepaid and postpaid. So when
people can here these two services of Idea Cellular then they easily recall the name
of Idea Cellular Service.
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Introduction: In the initial stage Idea Cellular was introduced in all the major
cities of India. There were many competitors in the tele-communication business,
which provided the line-based Connection and wireless connection whereas Idea
Cellular provided the wireless connections to the customers. So profits are
nonexistent because of the heavy expenses on giving schemes of service
introduction. In the case of Idea Prepaid Service as it was introduced in the year
1995 so it was the introduction stage.
Growth: In the growth stage, the Idea Cellular sales started growing. And the
profits also started rising. Idea Prepaid Service growth stage was year 2002
because by the 2002s, Idea Prepaid got the 1 million subscribers, and in 2005 it
crossed 5 million subscribers.
Maturity:
31
Idea Cellular is right now in the maturity stage, because they have got most of
the market share. There has also been an increase in competition; new companies
like Reliances, Aircel etc. also enter into the market. The Idea Cellular handmade
not only the service modification, but also extend their market. So, we can say that
Idea Cellular is today on its maturity stage of its product life cycle.
32
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MARKETING CHANNEL
The marketing channel of Idea Cellular is as below.
35
In this channel first manufacture produce the sim-cards and then they sent to the
wholesaler as per the order. Wholesalers send to the retailers and shopkeepers and
then lastly retailer sales to customer.
PULL Strategy is develop by the Idea Cellular. As Idea Cellular is very known
brand and is punch line is
For the People, By the People and An Idea Can Change Your Life
Which is verygood thats why Penetrated Market consumer know about thatand
they ask about Idea Prepaid Simcards?
DISTRIBUTION STRATEGY
36
MARKET SHARE
38
Share
Idea
Vodafone
Airtel
BSNL
Aircel
Reliance
Uninnor
This study is done in the few areas of thats why it will not give the clear picture
of the thinking of mobile subscribers about the company and its products.
40
People are known to the IDEA CELLULAR LTD. and its services but still
37% of the people use Idea 32% use Airtel 19% use Vodafone, around 10%
Reliance use and7% use Uninnor.
People are aware with the services i.e. marketing communication is good.
90% of the people, even after being aware of the brand, have never used
idea cellular services.
Subscriber is not very much satisfied with the service. So, there is a need to
improve the coverage in terms of area as well as network.
Most of the subscriber suggested that the advertisement was good enough to
communicate the message but what matters at the end is the service provided by
idea. So, there is a need to improve the coverage and connectivity of Idea. And
other suggestion which was given by the subscribers was that they liked Abhishek
Bacchan more as the Brand Ambassador for IDEA.
SWOT ANALYSIS
41
RECOMMENDATIONS
42
CONCLUSION
43
Communication strategy of idea is very good because most of the people are
well known to the service by idea .Being new to telecom industry, people are not
confident to go for it. Also, competitors of idea are very much powerful in
communicating as well as providing the service.
And one thing which is focused is that the Brand Ambassador also plays an
impotent role in catching the attention of the customer because most of the people
reported that they liked Abhishek Bacchan more than Sariya Saran
BIBLIOGRAPHY
44
Websites: www.ideacellular.com
www.google.co.in
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