Index

Sr. No. Particulars Page No.

1 Research Design 9
2 Introduction 12
3 Industry Profile 13
• Over view
• Indian telecom industry at a glance
• Major players
4 Company Profile 31
• Products of Idea
• Five force model
5 Data Analysis & Interpretation 49
8 Findings 91
9 Recommendation 92
10 Appendices 94
11 Bibliography 102
12 Glossary 103
 RESEARCH DESIGN

“Assessment of Distribution Network of Idea in Ahmedabad”

Objectives of Project:

 To assess market share of the Idea vis-à-vis other competitor.

 To analyze effectiveness of idea’s representative vis-à-vis other competitor.
 To study and analyze the reach of Idea’s distribution network vis-à-vis other
competitor.
 To assess the distribution depth of Idea vis-à-vis other competitor.

Research Methodology:

Type of the study

The type of study we will use would be Descriptive study.

Sampling design

 Universe of Research:
The research would be conducted in Ahmedabad. So the universe for the
study would be Ahmedabad.

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  Size of the sample:
The sample would include the following:
 Pre paid Dealers 100

 Sampling procedure:
The sampling procedure would be stratified random sampling.

Data sources:
 The data to be used for the study would be both secondary and primary
data.
 The secondary data would be necessary to study the distribution Network.
It would be obtained from Database of the company, web sites etc.
 The primary data would be obtained through survey of pre-paid dealers of
idea cellular, which would be conducted through personal interview &
filling-up of the questionnaires.

Research instrument:
The research instrument would be an interview schedule with filling up
the questionnaires. It would be consist of 10 questions to keep it short.

Pilot Testing:

We are conducted a pilot test of about 12 pre-paid retailers of idea cellular

and according to the need the questionnaire is revised as per the response
received.

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 The changes as per under:

• The FOD segment is later on included

• The value of recharge voucher is made more segregated.
• Time period of visit of distribution is also made more segregated.
• The concept of call center efficiency measurement is included
after pilot testing.

Limitations & Scope of Research

The Research study conducted herewith is restricted to the market of Ahmedabad only.

Some limitations in terms of research resources and manpower couple with the fact that
the sample size and the quality of respondents were limited due to the constraint of time,
hence there would be some variance from the actual scenario. This research study would
provide only a micro insight into the dynamic factors that rule the Ahmedabad telecom
distribution network.

To this extent, we would like to state that the research should not be treated as conclusive
and there is a further scope of improvement for research. A wider sample base and a
broader geographical territory (preferably a Circle of Telecom) would be more effective
in drawing a relatively more accurate research picture.

This has been a very satisfying research experience for the two of us and we would like,
if possible to extend and compile a macro profile for this research topic.

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 INTRODUCTION

The topic of the project is the Assessment of distribution network for Idea in Ahmedabad.
In such project actually we try to analyze the strength of the idea cellular with other
competitors in the market.

The objective of this project was to assess market share, to analyze effectiveness of idea’s
representative, to study and analyze the reach of Idea’s distribution network vis-à-vis
other competitor.

For such the survey of 100 retailers had been made and with filling up of the
questionnaires, try to analyze the distribution effectiveness and the distribution reach and
its depth in the Ahmedabad.

With the use of different types of the charts and the statistical tool, we try to analyze the
facts of the Ahmedabad for all companies.

An assessment of the Distribution Network of idea’s services will help the company in
knowing the strength and weaknesses of the distribution network in Ahmedabad vis-à-vis
competitor. After the project, we are able to give suggestions to the company on the basis
of field survey and its result.

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 INDUSTRY PROFILE

Telecommunications is the one of the fastest growing service industries of the word.
While the accent of growth on the value added services, such as email, cellular phones
etc in the developed countries, the thrust is on improving basic role in spurring growth,
especially industrial and services, in any economy.

The last two decades has witnessed a restructuring of the entire sector across the globs, in
terms of privatization and competition. Opening up of economies and privatization in the
developing countries has triggered an influx of foreign capital and technology into the
telecom sector.

HISTORY OF WIRELESS…

The cell phone is one of the most significant technological advances of the 20th century;
however, the neat little gadget is not the first to communicate without wire. Smoke
signals and tribal drums were used to communicate over short distances without wires.
Later, although there was a form of mobile telephone service available in the late 1940s,
its capacity was limited to 12 simultaneous callers.

WORKING OF WIRELESS…

Cell phones use low- energy FM radio waves to transmit voice to the nearest antenna site
connected with the local phone network. The call goes through either a regular phone
line, or by radio signal to another cell phone, depending on the service. Wireless
technology uses individual radio frequencies over & over by dividing service areas into
different geographic zones called “cells”. Each has its own radio transmitter and receiver
antenna linked to Mobile Telephone Switching Offices (MTSOs).

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As the caller moves from one place to the next, the call is handed off by the MTSO to the
next cell site, providing a consistent, high quality signal. When a subscriber travels of a
service area, “roaming” on the systems of other wireless carriers can still make calls.
These carriers take up the call signal and allow calls to be made or received within their
coverage area.

DEFINING CELLULER SERVICES:

Cellular Service is a service, which enables two-way, mobile, wireless communication

via a portable handset. Area covered by the service provider is divided into cells, each
with a Radio Base Station (RBS) connected to a Central Switching Center (CSC) which
monitors the entire system. In the midst of a call, if a subscriber moves across cells, CSC
ensures handing over of the call between the adjacent RBS and the call is uninterrupted.

Cellular Technology: The technology that gives a person the power to communicate
anytime, anywhere – has spawned an entire industry in mobile growth, success and
efficiency of any business/ economy. The most prevalent wireless technology in the
world today, is GSM.

The GSM association (Global System for Mobile Communications) was instituted in
1987 to promote and expedite the adoption, development and deployment and evolution
of the GSM standard for digital wireless communication. The Association was formed as
a result of a European Community agreement on the need to adopt common standards
suitable for cross border European mobile communications.

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Starting off primarily as a European Standard, the Group Special Mobile as it was then
called, soon came to represent Global System for mobile communications as it achieved
the status of a worldwide standard. The GSM membership has grown exponentially since
1992.

8
Overview – The Indian Telecommunication Industry- Past,
Present & The Future…

9
 The journey so far…

1994 was a watershed year in the history of the Indian telecom sector, which ranked
sixth in the world after USA, China, Japan, Germany, and France in terms of number of
installed fixed lines.

The government of India introduced the New Telecom Policy (NPT) that year that
envisaged a vast change in Indian Telecom Scenario and reflected the Government’s
desire to bring the Indian telecom at par with the rest of the world. It was followed up by
the introduction of NTP 1999. The various policy changes also reflected the
Government’s realization that the huge funds needed to undertake gigantic and extensive
upgrade of telecom infrastructure in all the three segments of wire line, wireless and data
services, would require active participation of private sector.

As soon as the telecom industry opened to private sector investment beginning 1994, a
large number of Indian companies entered the segment with varying force, different
strategies, and assorted aspirations. There were ten key strategic dimensions along
which these new entrants positioned themselves in this sector.

 How we stand today…

The Indian telecommunication network with 69 million telephone connections is the fifth
largest in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world and represents unique opportunities
for UK companies in the stagnant global scenario. With tele-density approaching 6.9 per
hundred, the target to achieve 15 per hundred by 2010 looks well within reach. India's
total mobile subscriber base (both cellular and wireless in local loop-mobile) has reached
27 million. About 85% of the villages have village public telephones (VPTs)- 5,16,887
VPTs exist in India. The remaining 15% that includes 88,970 villages are yet to be
covered. Accordingly, India's 10th Five- year plan 2002-07 projects £25 billion worth of
investments in 50 million fixed lines, 30 million cellular lines and 20 million Internet
connections.

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The factors behind the wireless revolution in India are no different from those
prevailing globally and can be listed as follows:

1. Industry deregulation & liberalization has ushered in increased competition

& led to growth

The Indian telecom industry has come of ages in the field of regulations. It started with
the NTP in 1994. Between the years 1994 & 1998 TRAI was established as an
independent regulatory body, the wireless licenses were allotted to private operators and
the wire line services were opened up to competition.

Between 1999 & 2002 new telecom policy was introduced and there was entry of third &
fourth operators in the wireless services. Free competition was allowed in wire line and
first round of tariff rebalancing was done. The operators moved from fixed to revenue-
sharing license fee structure. Then in the year 2003-2004 the unified license regime was
introduced to enhance the competition and create a level playing field. Transfer of
wireless licenses was allowed among the operators and intra-circle wireless mergers were
also allowed.

2. Declining tariffs have made wireless & Handset prices extremely affordable

The intense competition has been instrumental in driving down the wireless tariffs. Entry
of 3rd and 4th GSM operators in each circle, and CDMA wireless operators, has created a
new floor for local & long distance tariffs. The average peak wireless call tariff per
minute has come down from Rs. 16.8 in 1998 to Rs. 6 in 1999 to Rs. 4 in 2002 and Rs.
1.5 at present. There has also been a crash in the handset prices by more than 70% over
the last 4-5 years, and the operators have coupled it with easy financing schemes and
bundling of handsets with connections. With the government reducing the custom duties
on the handsets, handset prices are expected to come down even further, leading to higher
new demand and replacement demand.

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 3. Prepaid offerings have driven mass penetration of wireless

Prepaid offerings have created a surge in wireless subscribers, mirroring the trend in
other developing countries. The operators are aggressively promoting prepaid cards and
have spurred the adoption of wireless by the masses. From the budget-conscious lower
middle class households to college students to low income groups, people are
increasingly seeing prepaid as a hassle-free way of going wireless. The prepaid share has
increased from 26% in 1999 to 60% in 2002. However, in 2003 prepaid did not increase
its share of the total subscriber base, despite the addition of 17 million new subscribers
because all the 6 million new subscribers added by CDMA wireless were postpaid
subscribers. With the introduction of the CDMA prepaid in 2004 the prepaid share will
increase to over 75% in coming years.

4. Implementation of CPP regime has given the subscriber greater control over
costs

The implementation of CPP regime was a water-shed event in the industry. It has greatly
increased the affordability of going wireless, as subscribers don’t have to pay for
incoming calls, and can control their telecom costs better. The other benefits of CPP are
lower costs for wireless subscribers, higher wireless usage, and higher penetration of
wireless.

 Road to Future…

The unified licensing has ended the License Raj in telecom, resolved all litigations,
created a level playing field for all the operators and has paved the way for faster and
sustainable growth of the telecom sector. The wireless revolution will increase its pace
and the factors that have been responsible for its growth will carry it further. The wireless
data services will act as a revenue stream for the wireless operators. Some operators have
already deployed 3G technologies on their networks. With further rollout of wireless
broadband, backed by the provision of compelling content services, broadband revenues
will comprise a key portion of the total telecom pie in the future

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The future market will be characterized by high penetration, competition and churn and
the winners will be distinguished by how they address these challenges. They’ll have to
juggle between achieving economies of scale, efficient network management, increasing
operating margins & attracting and maintaining subscriber base.

The future value will reside in ownership of customer relationship and provision of
diversified services. This implies a trend towards bundled service offerings. For provision
of bundled services, operators will need to have strategic alliances with intermediaries
through whom traditional commercial transactions can be executed. Operators with the
best interface strategies will succeed in maintaining the customer loyalty.

The operators need to rapidly grow their subscriber base while simultaneously
maintaining customer loyalty. The ability to segment customers, identify the best among
them and maximize their value will determine success.

Subscriber numbers are expected to more than double in the period 2001-2006, from 35
million in March 2001 to about 85 million in 2006. India will mirror the global trend of
high growth rates in mobile vis-à-vis fixed-line users (40 per cent CAGR in mobile
services against 16 per cent in the fixed-line segment). However, with fixed-line
teledensity in India being at a very low 4 per cent, absolute growth in fixed-line services
will lead additions in mobile subscribers over the next 10 years. Despite the high
projected growth, teledensity in 2010 is expected to be 11.5 per cent, falling short of the
NTP99 target of 15 per cent. Revenues will also grow, albeit slowly, in the light of
significant reductions in tariffs. By 2008, telecom is expected to be a Rs 76,000-crore
sector, contributing 5.4 per cent to India’s GDP.

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Teledensity 12.90%
Basic phone lines 65 million
Telephone exchanges 38,000
Cellular subscribers 129.4 million
Basic telecom subscribers incl. WLL 16.9 million
PCO (Public call Office) 2255980
Paging subscribers 0.6 million
Optical fiber cable (OFC) route length 579500 Kms
Television sets 100 million
PCs 9 million
Cable TV Connections 45 million

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 Indian Telecom Industry at a glance

At 110.01 million connections ‘Indian Telecom Industry’ is the Third largest and
fastest growing in the world. The subscriber base has grown by 40% in 2005 and is
expected to reach 250 million in 2008.

Over the last 3 years, two out of every three new telephone connections were wireless.
Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as
compared to only 40% in 2003.

Wireless subscriber growth is expected to grow at 2.5 million new subscribers every
month in 2007. The wireless subscriber base skyrocketed from 33.69 million in 2004 to
62.57 million in FY 2004 -2005.

The wireless technologies currently in use ‘Indian Telecom Industry‘ are Global
System for Mobile Communications (GSM) and Code Division Multiple Access
(CDMA).
There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19
telecommunication circles and 4 metro cities, covering more than 2000 towns across the
country. And the numbers are still growing for ‘Indian Telecom Industry‘. ‘Telecom
Industry in India ‘is regulated by ‘Telecom Regulatory Authority of India’ (TRAI). It
has earned good reputation for transparency and competence. Three types of players
exists in ‘ Telecom Industry India ‘ community - State owned companies like - BSNL
and MTNL.
Private Indian owned companies like - Reliance Infocomm and Tata Teleservices.Foreign
invested companies like – Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular,
BPL Mobile, Spice Communications etc.

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The ‘ Indian Telecom Industry ‘ services are not confined to basic telephone but it also
extends to internet, broadband (both wireless and fixed), cable TV, SMS, IPTV, soft
switches etc. The bottlenecks for ‘ Indian Telecom Industry ‘ are:

Slow reform process:

 Low penetration. Service providers bear’s huge initial cost to make inroads and
achieving break-even is difficult.
 Huge initial investments.
 Limited spectrum availability and interconnection charges between the private
and state operators.

 The Government Broadband Policy 2004 aims at 9 million broadband connections

and 18 million internet connections in 2007. ‘Indian Telecom Industry ‘is
currently expected to contribute nearly 1% to India’s GDP which is heartening
and estimated to grow further and brighten the ‘Scenario of Indian Telecom
Industry ‘.

GSM and CDMA subscription numbers:

CDMA
GSM Subscribers GSM Annual CDMA Subscribers
Year Annual
(millions) growth (millions)
growth
2000 3.1 94% - -
2001 5.05 76% - -
2002 10.5 91% 0.8 -
2003 22.0 110% 6.4 700%
2004 37.4 70% 10.9 70%
2005 58.5 57% 19.1 75%
2006 105.4 80% 44.2 131%
2007 129.0 71% 85.0 92%

The telecom network in India is the third largest network in the world meeting up
with global standards. Presently, the Indian telecom industry is currently slated to an
estimated contribution of nearly 1% to India’s GDP.

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Some figures:

 The Indian Telecommunications network with 129.01 million connections is the

third Largest in the world and the second largest among the emerging economies
of Asia.

 Today, it is the fastest growing market in the world and represents unique
opportunities for U.S. companies in the stagnant global scenario.

 The total subscriber base, which has grown by 40% in 2005, is expected to reach
250 million in 2007.

 According to Broadband Policy 2004, Government of India aims at 9 million

broadband connections and 18 million internet connections by 2007.

 The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57
million in FY2004-2005.

In the last 3 years, two out of every three new telephone subscribers were wireless
subscribers. Consequently, wireless now accounts for 54.6% of the total telephone
subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is
expected to bypass 2.5 million new subscribers per month by 2007.

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The Wireless technologies currently in use are Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). There are
primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles
and 4 metro cities, covering 2000 towns across the country.

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Major Players

There are three types of players in telecom services:

 State owned companies (BSNL and MTNL)

 Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)
 Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures,
 Escotel, Idea Cellular, BPL Mobile, Spice Communications)

BSNL

On October 1, 2000 the Department of Telecom Operations, Government of India

became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL).
BSNL is now India’s leading Telecommunications Company and the largest public
sector undertaking. It has a network of over 45 million lines covering 5000 towns
with over 35 million telephone connections.

The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet
and long distance services throughout India (except Delhi and Mumbai). BSNL will be
expanding the network in line with the Tenth Five-Year Plan (1992-97). The aim is to
provide a telephone density of 9.9 per hundred by March 2007. BSNL, which became the
third operator of GSM mobile services in most circles, is now planning to overtake Bharti
to become the largest GSM operator in the country. BSNL is also the largest operator in
the Internet market, with a share of 21 per cent of the entire subscriber base.

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BHARTI

Established in 1985, Bharti has been a pioneering force in the telecom sector with many
firsts and innovations to its credit, ranging from being the first mobile service in Delhi,
first private basic telephone service provider in the country, first Indian company to
ovide comprehensive telecom services outside India in Seychelles and first private sector
service provider to launch National Long Distance Services in India. Bharti Tele-
Ventures Limited was incorporated on July 7, 1995 for promoting investments in
telecommunications services. Its subsidiaries operate telecom services across India.
Bharti’s operations are broadly handled by two companies: the Mobility group, which
handles the mobile services in 16 circles out of a total 23 circles across the country; and
the Infotel group, which handles the NLD, ILD, fixed line, broadband, data, and satellite-
based services. Together they have so far deployed around 23,000 km of optical fiber
cables across the country, coupled with approximately 1,500 nodes, and presence in
around 200 locations. The group has a total customer base of 6.45 million, of which 5.86
million are mobile and 588,000 fixed line customers, as of January 31, 2004. In mobile,
Bharti’s footprint extends across 15 circles.

Bharti Tele-Ventures' strategic objective is “to capitalize on the growth opportunities the
company believes are available in the Indian telecommunications market and consolidate
its position to be the leading integrated telecommunications services provider in key
markets in India, with a focus on providing mobile services”.

MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of
telecom services, expand the telecom network, introduce new services and to raise
revenue for telecom development needs of India’s key metros – Delhi, the political
capital, and Mumbai, the business capital. In the past 17 years, the company has taken
rapid strides to emerge as India’s leading and one of Asia’s largest telecom operating
companies. The company has also been in the forefront of technology induction by

20
converting 100% of its telephone exchange network into the state-of-the-art digital mode.
The Govt. of India currently holds 56.25% stake in the company. In the year 2003-04, the
company's focus would be not only consolidating the gains but also to focus on new areas
of enterprise such as joint ventures for projects outside India, entering into national long
distance operation, widening the cellular and CDMA-based WLL customer base, setting
up internet and allied services on an all India basis.

MTNL has over 5 million subscribers and 329,374 mobile subscribers. While the market
for fixed wireline phones is stagnating, MTNL faces intense competition from the private
players—Bharti, Hutchison and Idea Cellular, Reliance Infocomm—in mobile services.
MTNL recorded sales of Rs. 60.2 billion ($1.38 billion) in the year 2002-03, a decline of
5.8 per cent over the previous year’s annual turnover of Rs. 63.92 billion.

RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated
telecom service provider with licenses for mobile, fixed, domestic long distance and
international services. Reliance Infocomm offers a complete range of telecom services,
covering mobile and fixed line telephony including broadband, national and international
long distance services, data services and a wide range of value added services and
applications. Reliance IndiaMobile, the first of Infocomm's initiatives was launched on
December 28, 2002. This marked the beginning of Reliance's vision of ushering in a
digital revolution in India by becoming a major catalyst in improving quality of life and
changing the face of India. Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for India's farmers,
businesses, hospitals, government and public sector organizations.

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Until recently, Reliance was permitted to provide only “limited mobility” services
through its basic services license. However, it has now acquired a unified access license
for 18 circles that permits it to provide the full range of mobile services. It has rolled out
its CDMA mobile network and enrolled more than 6 million subscribers in one year to
become the country’s largest mobile operator. It now wants to increase its market share
and has recently launched pre-paid services. Having captured the voice market, it intends
to attack the broadband market.

TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over
200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides
basic (fixed line services), using CDMA technology in six circles: Maharashtra
(including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka.
It has over 800,000 subscribers. It has now migrated to unified access licenses, by paying
a Rs. 5.45 billion ($120 million) fee, which enables it to provide fully mobile services as
well.

The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million)
to DoT for 11 new licenses under the IUC (interconnect usage charges) regime. The new
licenses, coupled with the six circles in which it already operates, virtually gives the
CDMA mobile operator a national footprint that is almost on par with BSNL and
Reliance Infocomm. The company hopes to start off services in these 11 new circles by
August 2004. These circles include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata,
Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & West and West Bengal.

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VSNL

On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS. The company operates a network of
earth stations, switches, submarine cable systems, and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees. VSNL's main gateway centers are located at Mumbai, New Delhi,
Kolkata and Chennai. The international telecommunication circuits are derived via
Intelsat and Inmarsat satellites and wide band submarine cable systems e.g. FLAG, SEA-
ME-WE-2 and SEA-ME-WE-3.

The company's ADRs are listed on the New York Stock Exchange and its shares are
listed on major Stock Exchanges in India. The Indian Government owns approximately
26 per cent equity, M/s Panatone Finvest Limited as investing vehicle of Tata Group
owns 45 per cent equity and the overseas holding (inclusive of FIIs, ADRs, Foreign
Banks) is approximately 13 per cent and the rest is owned by Indian institutions and the
public. The company provides international and Internet services as well as a host of
value-added services. Its revenues have declined from Rs. 70.89 billion ($1.62 billion) in
2001-02 to Rs. 48.12 billion ($1.1 billion) in 2002-03, with voice revenues being the
mainstay. To reverse the falling revenue trend, VSNL has also started offering domestic
long distance services and is launching broadband services. For this, the company is
investing in Tata Telservices and is likely to acquire Tata Broadband.

Vodafone

Vodafone’s presence in India dates back to late 1992, when they worked with local
partners to establish a company licensed to provide mobile telecommunications services
in Mumbai. Commercial operations began in November 1995. Between 2000 and March
2004, Hutch acquired further operator equity interests or operating licences. With the

23
completion of the acquisition of BPL Mobile Cellular Limited in January 2006, it now
provides mobile services in 16 of the 23 defined licence areas across the country.

Vodafone India has benefited from rapid and profitable growth in recent years. it had
over 17.5 million customers by the end of June 2006.

IDEA

Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand
designs to become a national player, but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd. IDEA operates in eight telecom “circles,” or
regions, in Western India, and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO, according to parent company Aditya Birla Group .

24
 TELEPHONE NETWORKS STATUS AS OF

DECEMBER 2007

The Indian telecom boom is for real. While various issues between operators and the
government and between fixed and mobile operators did result in avoidable chaos
and uncertainty, the sector continued to grow. The Indian economy is expected to add
millions of consumers of a younger age profile, more inclined to use telecom
services. The fact that India has one of the lowest telecom penetration rates among
major nations also offers an unprecedented opportunity for telecom service
operators, infrastructure vendors, manufacturers and associated services companies.

25
 COMPANY PROFILE

IDEA CELLULAR LIMITED

“The proud offspring of three illustrious parent (A.V Birla Group, TATA cellular and AT
& T Wireless), Idea Cellular will be driven by the objective of creating a different in the
lives of our customers. Idea Cellular aspires to offer the most comprehensive and
innovative services, to assist people to go beyond what they thought possible. As the
cellular revolution transforms India in the coming decade, Idea Cellular will be a
harbinger of change.”

- Sanjeev Aga
(President and CEO Idea Cellular Limited)

26
  ABOUT THE COMPANY…

 LAUNCH OF SERVICE:

The cellular service was launched in the Gujarat circle in January 1997 and in the
Maharastra circle (excluding Mumbai, including Goa) in March 1997.

 THE INITIAL PROMOTERS:

It was at the time of its launch set up as a joint venture of Aditya Birla Group and the
leader in Wireless Technology-AT&T.

Established in 1947, the Aditya Birla Group is on of the leading business house in India.
The Group has its presence across various sectors including cement, Viscose Staple fiber,
engineering, textiles, power, telecommunication, industrial chemicals, petroleum and
financial services. The business is spread across 15 countries with over 100
manufacturing units in India and overseas including Thailand, Indonesia, Malaysia,
Philippines, Egypt and Canada. Trading operations span across Singapore, Dubai, UK,
USA, South Africa, Tanzania, Burma and Russia. All the group’s units are accredited
with the ISO 9002 certification and nine on them ISO 14001 certified.

AT&T is the largest telecommunication company in the world offering a complete range
of communication services. AT&T started its operations in 1885 and is present in over
200 countries. In the United States – its parent country, AT&T Corp. is a leading –
distance carrier, wireless operator and provider of video data and Internet services. In the
recent past, AT&T Corp. acquired Media One, one of the largest cable companies in
USA, while Media one had acquired US West, a US based telecom operator.

In India, US West is the joint venture partner of BPL for providing cellular services in the
circles of Maharastra, Kerala and Tamilnadu. As a result of this consolidation, AT&T has

27
direct interest in cellular services in Maharastra through Birla AT&T Communications
Limited and an indirect Internet through Media one in BPL Cellular Limited.

 TECHNOLOGY PARTNERS:

Idea welcomes all businesses and individuals interested in partnering with it to enhance
and strengthen the idea’s products and services portfolios.

Some of the idea’s technology and content partners:

Nokia, Ericsson, schlumberger sema, NDTV, indiatimes, rediff, C2W.

 IDENTITY:

Idea Cellular's antecedents date back to 1995, when the Aditya Birla Group and AT&T
(through Birla AT&T Communications – Maharastra & Gujarat circle) and the Tata
Group (through Tata Cellular - Andhra Pradesh circle) set up cellular networks. Both the
above company was amongst the first company to commercially start operation in circles
other than metros and achieve financial closure in Indian Telecom industry.

In the year 2000, the historic path-breaking merger of Tata Cellular with Birla AT&T
Communications and the subsequent acquisition of RPG Cellular - (Madhya Pradesh
circle) in the year 2001 - helped take the company to aim even further and led to the
formation of Birla Tata AT&T Limited.

In year 2001, company won fourth cellular license for Delhi metro circle and in year
2002 company introduced common brand “!DEA” and changed the name to IDEA
Cellular Limited

Since then, there has been no looking back for IDEA Cellular. The company launches
Delhi operations in year 2002 and added a record 100,000 subscriber within one month of
launch.

28
In 2003, the company achieved the largest financial closure in Indian Telecom for its
entire circle. In 2004, the company entered into definitive agreement to acquire Escotel
Mobile Communications (existing operator in Haryana, Kerla and UP (W)) and Escorts
Telecommunications (cellular licensee holder for UP (E), Himachal Pradesh and
Rajasthan)

 CORE BELIEF:

"Attracting and nurturing talent has become the single most dominant force in
business."

Idea - the very name suggests innovation. Innovation, which comes from intelligence,
talent, skills, involvement, hard work and continuous learning.

The company continuously harnesses the power of wireless revolution to provide world-
class products and services. It aims at responding to customer needs proactively by
anticipating requirements and providing ready solutions.

Idea Cellular draws inspiration from the loyalty of its subscribers to keep raising the bar,
to shape the future, and to change and enrich the life of each and every member of its
ever-growing family of subscribers.

 THE MEDIA:

“Stay Connected” is a brand promise that looks at the key purpose of the mobile
telephony. It converges with the tangible requirement of ‘network depth’ and at the same
time, reflects the eternal human need for bonding, kinsman ship and relationship forming.
This new brand campaign enables Idea to own the biggest category benefit of “keeping
people connected”, through a simple, unique and a likable expression of connectivity.
And it makes consumers aware that “no one connects better than Idea.”

29
Slated to run through 2004, the campaign utilizes all relevant mainline media to
propagate the message to its audiences with 60-seconds commercial and its various edits,
print campaign and its outdoor publicity. Apart from it various innovative media/events
has been used to further strengthen the message.

For example- at local level Idea has exploited the Indo-Pak series by screening the one-
day matches in popular places under the theme of stay connected.

 THE PRODUCTS:

The Post-paid Card:

The regular card as it is more popularly known as. The AT&T postpaid card has been
rechristened as the Idea Postpaid card.

The Pre-paid Card:

The Idea Cellular Pre-paid card is called as “IDEA CHITCHAT”

30
 “IDEA CHITCHAT”

IDEA Chitchat is a ready to talk cellular services. It runs on the state-of-the-art Intelligent
Network, comes with world class features like all handset compatibility, therefore
helping you to control your expenses too. It lets you make and receive local, national and
international calls instantly.
MISSION STATEMENT:

“Through continuous innovation Idea promises to liberate customers from the

shackles of time and space”.

(Innovate, Stimulate, Liberate….)

31
 Products of Idea

Idea Postpaid Entry Pricing (W.E.F. 6th Nov 07) All the Bill Plans
Activation Novo ! 99 Easy 499 Edge 299 Edge 199 Easy 599 MY Club
200 200 200 200 200 200
Activation Activation Activation Activation Activation Activation
Cost Cost Cost Cost Cost Cost
Prepaid to
Postpaid 100 Plan 100 Plan 100 Plan 100 Plan 100 Plan 100 Plan
Enrolment Enrolment Enrolment Enrolment Enrolment Enrolment
Fees Fees Fees Fees Fees Fees
Total:300 Total:300 Total:300 Total:300 Total:300 Total:300
200 200 200 200 200 200
Activation Activation Activation Activation Activation Activation
Cost Cost Cost Cost Cost Cost
Add-on
Nil Plan Nil Plan Nil Plan Nil Plan Nil Plan Nil Plan
Connection
Enrolment Enrolment Enrolment Enrolment Enrolment Enrolment
Fees Fees Fees Fees Fees Fees
Total:200 Total:200 Total:200 Total:200 Total:200 Total:200

Benefits
Credit on Credit on
299 199
Local Usage of Usage of 0.10 to My
Minutes Minutes
100min Rs.499 on Rs.599 Club/My
Benefits Idea to Idea to
M2M Local and on Local Gan Series
Idea Idea
Free STD Call and STD Numbers,
Free Free
Usage Usage

Idea Prepaid Regular Plan

32
 - Total - Rs. 99/-
- MRP of Starter Pack - Rs. 99/-
Entry Level Cost
- Validity Period - 0 Days.
- TalkTime - Rs. 0/-.
Recharge Vouchers (RV) valuing -
Any Processing Charges [Inclusive of SIM + Processing fee +
12.36% Service Tax in INR]
Monthly free call allowances NIL
Duration of plan Open till further notice
This interactive SMS based Self-service
application enables the prepaid
subscriber to know their product related
information , recharge voucher related
information , what is hottest or latest
Information Just an SMS away promo and what is my account
information specific to subscriber related
information, send sms "CARE" to 4444.

*SMS to 4444 toll free from Home

network.
Any taxes, in addition to the above NIL

Local Charges (Rs.)

Fixed WLL Cellular
Local Idea to idea Nil Nil Re 1/-
Re 1/- per Re 1/- per Re 1/- per
Local GSM, Landline and WLL
minute minute minute
STD
Anywhere in India 2.75 2.75 2.75
STD Pack @ Rs. 40/- Per
1.50 1.50 1.50
Month
ISD Rates
US, Canada, Europe, (Fixed),
6.40 6.40 6.40
Singapore & Hong Kong
Other countries 9.19 9.19 9.19

33
Cuba, Sao Tome & Principe,
Guinea Bissau, Diego Garcia,
Nauru,Solomon Islands,
49.20 49.20 49.20
Vanuatu, Cook Islands,
Tuvalu, Tokelau, Norfolk
Island, Sakhalin

34
Additional value added services:
Night Talk
Outgoing (11pm to 8am)
Cell to Cell ( Local Mobiles)
Outgoing
STD Pack @ Rs. 40/-
I2I Pack Rental - Rs. 25/-
Rs. 30/-
Local Idea to Idea 0.09/ min Other Local
Mobiles 0.50 and LL Rs. 1/-
To Activate Send sms : "Night" to 4444.
To Deactivation Send sms 'NONIGHT" to
4444.
Rs. 30/-
Rs 1 Per Minute to Local Mobiles
To Activate Send sms : "CC" to 4444.
To Deactivation Send sms 'NOCC" to
4444.
Rs. 1.50/- For all STD calls.
To Activate Send sms : "STD" to 4444.
To Deactivation Send sms 'NOSTD" to
4444.
0.30 Paise for Local Idea to Idea Calling.
To Activate Send sms : "I2I" to 4444.
To Deactivation Send sms 'NOI2I" to
4444.
35
 Recharge Vouchers (RV) valuing -
[Inclusive of SIM + Processing fee + 12.36% service tax in INR+]

MRP Range Service Tax Rs. Pro Fee Talktime Range Rs Validity Remarks
Rs Rs Days
From To From To From To
10 10 1.10 1.10 2 6.90 6.90 0
SMS Voucher:
Free 150 local
34 34 3.74 3.74 30.26 0 0 0 SMS to be
consumed within
30 days
50 50 5.50 5.50 5 39.50 39.50 0
Value Voucher
with Tariff Benefit-
Local I2I@30p,
55 55 6.05 6.05 48.95 0 0 0
M2M@50p &
LL@Re1. Tariff
valid for 30 days
70 70 7.70 7.70 2.30 60 60 0
Value Voucher
with Tariff Benefit-
75 75 8.25 8.25 66.75 0 0 0 STD Calls@Re.1.
Tariff valid for 30
days
88 88 9.68 9.68 78.32 0 0 0 SMS Voucher:
Free 1000 local
SMS to be
consumed within

36
 30 days
100 100 11.00 11.00 10 79 79 0
Value Voucher
with Tariff Benefit-
120 120 13.20 13.20 106.80 0 0 0 Local Calls @
Re.1/min. Tariff
valid for 365 days
199 199 21.89 21.89 127 50 50 60
220 220 24.20 24.20 110 85.80 85.80 15
350 350 38.50 38.50 125 186.50 186.50 30
550 550 60.50 60.50 125 364.50 364.50 30
1100 1100 121.00 121.00 150 829.00 829.00 75
2200 2200 242.01 242.01 150 1807.99 1807.99 180
3300 3300 363.01 363.01 0 2936.99 2936.99 365

Michael Porter’s “Five Forces” Model

He has identified five forces that determine the state of competitiveness in a market. The
forces also influence the profitability of firms already in the industry. These five forces
are summarized in the above diagram. (The fifth force is the degree of rivalry that
currently exists among firms already in the industry.) Here are a few additional details
about Porter’s model.

37
1. Barriers to Entry

Economies of scale mean larger firms can produce at lower cost per unit. This tends
to lower the number of firms in the industry and reduce competition.

38
Proprietary product differences are the characteristics that make a product appeal
to a large market segment. But only those characteristics that cannot be copied at low
cost by competitors (“proprietary”) will be a barrier to entry.

Brand identity is the extent to which buyers take the brand name into account when
making purchase decisions.

Capital requirements are the total cost of acquiring the plant and equipment
necessary to begin operating in the industry.

2. Bargaining Power of Suppliers

Differentiation of inputs means that different suppliers provide different input

characteristics for inputs that basically do the same job. The greater the degrees of
differentiation among suppliers the more bargaining power suppliers have.

39
Presence [and availability] of substitute inputs means the extent to which it is
possible to switch to another supplier for an input (or a close substitute). The greater
the number and closeness of substitute inputs the lower the bargaining power of
suppliers.

Supplier concentration is the degree of competition among suppliers. Usually the

more
concentrated the industry, the fewer suppliers and the more control suppliers have
over
the prices they charge. Greater supplier concentration often means greater supplier
bargaining power.

Cost relative to total purchases in the industry refers to the amount your firm
spends on inputs from a particular supplier compared to the total revenue of all firms
in the supplier’s industry. Lower expenditure usually implies more bargaining power
for the supplier. The buyer’s bargaining power falls as spending with a particular firm
falls simply because the buyer’s business isn’t as important to the supplier.

40
 3. Threat of Substitutes

Relative price performance of substitutes is the price of substitutes for your output
compared to the price you are charging. If the price of substitutes is lower, the
competitive threat increases as the price differential increases.

Switching costs refers to the cost to the buyer of switching from one seller to another.
The greater the switching costs the lower the threat of substitutes because buyers have a
stronger incentive to stick with a single supplier.

Buyer propensity to substitute is the extent to which buyers are willing to consider
other suppliers.

41
 4. Bargaining Power of Buyers

Buyer concentration versus firm concentration refers to the extent of concentration in

the buyer’s industry compared to the extent of concentration in your industry. The more
concentrated the buyer’s industry relative to your industry the greater the bargaining
power of buyers.

Buyer volume is the number of units of your product the buyer purchases from all
sources. The greater buyer volume compared to the quantity purchased from you, the
greater the bargaining power of buyers.

Buyer information is the state of information buyers have about your industry. The more
information buyers have about your industry the more bargaining power buyers have.
Substitute products means the number and closeness of substitutes available for your
product. The greater the number of available substitutes the more bargaining power
buyers have.

Price of your product relative to total expenditures on all products. This is the
fraction of total expenditure buyers spend on your products. The greater the fraction of
total expenditure the greater the price elasticity of demand and the more bargaining
power buyers have.

Product differences refers to the degree of differentiation between your product and
other products in the market. The greater the differentiation of your product, the lower its
price elasticity of demand and the less bargaining power buyers have.

Brand identity is the extent to which your brand name is recognized and sought out by
buyers. The stronger your brand identity the less bargaining power buyers have.

42
 5. Rivalry Determinants [with other firms in the industry]

Industry growth is the speed at which the market is growing. Rapidly growing
markets
provide less incentive for firms to aggressively compete with each other.

Intermittent overcapacity is the amount demand fluctuates during a year (or over a
business cycle) and the impact lower demand has on how efficiently the firm is able to
use its plant and equipment. In some industries a decrease in demand leads to
significant
idle productive capacity, while other industries are not as susceptible to this factor.
More
intense rivalry is likely to be fostered in an industry in which firms face either large
amounts of unused plant capacity or face frequent idle capacity.

Concentration and balance is the number of firms in the industry and their relative
size.
An industry in which a few firms supply most of the output is likely to not be very
competitive because the large firms will control the market.

43
 DATA ANALYSIS & INTERPRETATION

STATISTICAL METHOD USED FOR TESTING:

 Area wise division

For the simplicity of the analysis, we have divided the whole Ahmedabad
in to main four areas. The total area of the Ahmedabad is 42, and those are
base on the different pin codes of Ahmedabad.

• Area-1 (South-west region) (144 retailers)

o Ellisbridge
o Jivaraj park
o Juhapura
o Paldi
o Polytechnic
o Amraiwadi
o Behrampura
o Isanpur
o Maninagar
o Narol
o Shah-alam
o Vatva
• Area-2 (North-west region) (120 retailers)
o Ranip
o Gandhi Ashram
o Sabarmati

44
 o Thal-tej
o Bodakdev
o Naran pura
o Navjivan
o Navarangpura
o Memnagar
o Ghatlodia

• Area-3 (North-east region) (116 retailers)

o Airport
o Cantonment
o Civil
o Girdharnagar
o Krishnanagar
o Kubernagar
o Naroda
o Saijpur-bogha
o Sardarnagar

• Area-4 (Middle east region) (120 retailers)

o Bapunagar
o Khodiarnagar
o Odhav
o Kalupur
o Gomtipur
o Rakhial
o Saraspur
o Thakkar bapa nagar
o Kathwada

45
 o Jantanagar

1. Availability of the cards with FOD:

Total Ahmedabad: The total no. of the retails is 100.

Airtel Bsnl Vodafone Idea Reliance Tata

Cards 96 40 98 96 64 34
FOD 0 0 0 0 0 0

46
 Availbility of cards and FOD

120
100
80
retailers

Cards
60
FOD
40
20
0
e

ea

ta
l

nl
rte

on

nc
Bs

Ta
Id
Ai

ia
da

l
Re
Vo

company

Conclusion:
From the above chart, we can conclude that the availability of the idea and hutch is
almost same and highest among all the competitors. In case of the FOD, FOD is not
sell by the retailer. Through there are few sellers of FOD but we can not find a single
one.

Suggestion:
From the above results we suggest to the company that they have to meet to the
retailer and convince them to sell the FOD cards. Because there is an opportunity to
garb the more market share.

47
2. Age of the retailer (Total experience):

Total Ahmedabad: The total no. of the retails are 100.

More than 9
Less then 1 year 1 to 3 years 3 to 6 years 6 to 9 years years
Age 41 51 7 1 0

48
 Age

1%
7% 0% Less then 1 year
41% 1 to 3 years
3 to 6 years
51% 6 to 9 years
More than 9 years

Conclusion:
In general, from the above graphical representation, we can conclude that, the most of the
retails belonging the range of the 1 to 3 years of the experience. It shows that the overall
distribution reach and the mobile users in the city of Ahmedabad were increased in last 3
years.

Suggestion:
We find that the most of the retailer belonging the range of 1 to 3 years of experience.
But company should approach to more experienced shopkeeper because they are the
known retailer of the particular area. And also they are at there from many years so there
are highly chances to sell more cards.

49
3. Target audience

Total Ahmedabad: The total no. of the retails are 100.

Airtel Bsnl Vodafone Idea Reliance Tata

Students 29 2 12 22 11 0

50
 S tu d ents

35
30
25
20
S tu d en ts
15
10
5
0 a

ta
nl
l
rte

Ide
e

e
Bs

Ta
nc
fon
Ai

lia
da

Re
Vo

Com pa ny

Conclusion:
From the above presentation, we can conclude that, in Ahmedabad the usage of the
maximum cards by students are of the Airtel. The idea is on the second position in
usage by students.

Suggestion:
Students are the maximum user of this service. But in today’s scenario there are
increases in working women so company can directly approach to locality service
women group. Yet not single companies do this so we have great opportunity to sell
more cards of our company.

51
4 Trade Scheme

Total Ahmedabad: The total no. of the retails are 100.

Airtel Bsnl Vodafone Idea Reliance Tata

Trade Scheme 96 38 99 98 64 33
Total 97 40 99 99 64 33

52
 Trade scheme

120
100
80
Retailer

Trade Scheme
60
Total
40
20
0
Re ea

ta
ne
l
Vo snl

e
rte

nc
Ta
Id
fo
B
Ai

lia
da

Com pany

Consumer Scheme

Total Ahmedabad: The total no. of the retails are 100.

Airtel Bsnl Vodafone Idea Reliance Tata

Consumer Scheme 96 38 99 99 64 34
Total 96 40 99 99 64 34

53
 Consumer scheme

120
100
80 Consumer
Retailer

Scheme
60
Total
40
20
0

Re a

ta
ne
l

Vo nl

e
rt e

nc
Bs

Ta
Id
fo
Ai

lia
da

Company

Conclusion:
From the above analysis, we can conclude that, in 98% cases, the all retailers are
aware about the consumer schemes and the trade schemes. The distributors make
them aware about the all the schemes available in the market.

Suggestion:
The company performs well in consumer scheme and trade scheme. So no
recommendation for consumer scheme and trade scheme.

54
5. Source of purchasing the cards:

Total Ahmedabad: The total no. of the retails are 100.

From company’s sales

person From other dealers
Airtel 0 97
Bsnl 0 40
Vodafone 0 100
Idea 0 100
Reliance 0 71
Tata 0 74

55
 S ource of purchasing

120
100
80 From com pany’s
sales person
Retailer

60
From other dealers
40
20
0
Re dea

ta
l

da l
ne

e
rte

Vo n

nc
Bs

Ta
fo
Ai

I
lia

Com pa ny

Conclusion:
From the above data, we can say that the all of the retailers purchase the prepaid cards
from the other dealers because their distribution service is good and timely.

Suggestion:
We find that most of the retailers purchase cards form the other distributors. In this
case company should hire more employees who meet the retailers directly and sell the
cards. By this way they can reduced the middle persons.

56
6. Analysis of all companies with different attributes:

Here, the total value is calculated on the basis of the rank given to them according to their
performance. (6 to 1 rank. 6 for best and 1 for worst).

Network:

Total Ahmedabad: The total no. of the retailer 100.

Airtel Bsnl Vodafone Idea Reliance Tata

Total Value 81 39 92 71 51 26
Average 4.856 2.33 5.532 4.688 3.074 1.52

57
 N etw ork

3 A verage

0
A irtel B snl V odafone Idea Reliance Tata

Conclusion:
As far as network is consult, the Vodafone is number one. The research shows that
the network is very much stronger. The idea’s position is third and then comes
Reliance and Tata.

Suggestion:
Idea’s position is third in network. If idea wants to come forward in network it has to
increase its network capacity in some area.

58
 Company Scheme:

Total Ahmedabad: The total no. of the retails are 100.

Airtel Bsnl Vodafone Idea Reliance Tata

Total Value 90 56 93 61 58 44
Average 5.006 3.685 5.658 4.492 3.47 3.152

C om pany schem e

3 A ve ra g e

0
A irte l B s n l V o d a fo n e Id e a R e lia n c e Ta t a

59
Conclusion:
As far as consumer’s scheme is consult, the Vodafone is number one. The research
shows that people are much satisfies with the Vodafone’s schemes. The Airtel’s
position is second and then comes Idea, BSNL And Reliance.

Suggestion:
We found that Idea is lacking in consumer schemes so company has to increase its
consumer schemes.

60
Trade Scheme:

Total Ahmedabad: The total no. of the retails are 100.

Airtel Bsnl vodafone Idea Reliance Tata

Total Value 81 72 84 82 76 65
Average 4.586 4.156 4.962 4.759 4.267 4.043

T ra d e s c h e m e

3 A ve ra g e

0
A irte l B s n l vo d a fo n e Id e a R e lia n c e Ta ta

Conclusion:

61
As far as Trading schemes are consulting, the Airtel and Idea has acquired the same
position almost. The research shows that retailers are much satisfies with the Airtel
and idea’s trading schemes. The idea’s position is second and then comes Hutch And
Reliance.

Suggestion:
The trading scheme of Idea is better then other companies. So company has to keep
this path.

Distribution Services:

62
Total Ahmedabad: The total no. of the retails are 100.

Airtel Bsnl vodafone Idea Reliance Tata

Total Value 84 59 89 87 82 79
Average 4.946 3.573 5.142 5.027 4.894 4.684

D is trib u tio n s e rv ic e

3 A ve ra g e

0
A irte l B s n l vo d a fo n e Id e a R elia n c e Ta ta

Conclusion:

63
 As far as distributor’s services consult, the Idea has acquired the first position. The
research shows that retailers are much satisfies with the idea’s distributor’s services.
The Airtel’s position is second and then comes Hutch And Reliance.

Suggestions:
The distribution service of Idea is good so there is no suggestions for the distributions
services.

Call Center Services:

64
Total Ahmedabad: The total no. of the retails are 100.

Airtel Bsnl Vodafone Idea Reliance Tata

Total Value 95 89 96 94 93 91
Average 5.764 5.357 5.862 5.694 5.628 5.532

C a ll c e n tre s e rv ic e

5 .9
5 .8
5 .7
5 .6
5 .5 A ve ra g e
5 .4
5 .3
5 .2
5 .1
A irte l B s n l V o d a fo n e Id e a R e lia n c e Ta ta

Conclusion:

65
As far as call center services consult, the Hutch has acquired the first position. The
research shows that the hutch provides the better call center services then others. The
Airtel’s position is second and then comes Idea And Reliance.

Suggestion:
In companies call center service, Idea has to need of improve its call center service, by
acquiring new technology. So it can compete other existing competitor.

The whole comparative analysis of all companies.

66
 Analysis of all companies

Airtel Bsnl Vodafone Idea Reliance Tata

7
6
5
4
3
2
1
0
k

e
e
or

ic

ic
m
tw

rv

rv
he
he

se

se
Ne

sc
sc

tre
e
ny

t io
ad

en
pa

bu
Tr

lc
m

tr i

l
Co

Ca
s
Di

Analysis of no of cards selling by retailers in Ahmedabad

67
 Area-1 (South-west region)

0/recharge 1 to 5 6 to 25 26 to 50 Above 50
Airtel 11 12 2 1 0
Bsnl 10 0 0 0 0
Vodafone 3 22 3 0 0
Idea 7 18 4 0 0
Reliance 10 6 3 0 0
Tata 5 4 0 0 0

25

20
0/recharge
15 1 to 5
6 to 25
10 26 to 50
Above 50
5

0
e

ea

ta
l

nl
rte

on

nc
Bs

Ta
Id
Ai

ia
da

l
Re
Vo

Area-2 (North-west region)

68
 0/recharge 1 to 5 6 to 25 26 to 50 Above 50
Airtel 9 12 1 0 0
Bsnl 8 0 0 0 0
Vodafone 2 18 3 1 0
Idea 8 12 1 0 0
Reliance 10 3 0 0 0
Tata 7 1 0 0 0

20
18
16
0/rec harge
14
12 1 to 5
10 6 to 25
8 26 to 50
6
A bove 50
4
2
0
ea

ta
l

nl

ne

ce
rte

Bs

Ta
Id

ia n
fo
Ai

da

l
Re
Vo

Area-3 (North-east region)

Above
0/recharge 1 to 5 6 to 25 26 to 50 50
Airtel 2 16 4 0 0
Bsnl 9 0 0 0 0

69
 Vodafone 2 17 3 1 0
Idea 2 16 5 0 0
Reliance 3 10 1 0 0
Tata 2 4 0 0 0

18
16
14 0/recharge
12
1 to 5
10
6 to 25
8
26 to 50
6
4 Above 50
2
0
ea

ta
l

ne
nl

ce
rte

Bs

Ta
Id

ia n
fo
Ai

da

l
Re
Vo

Area-4 (Middle-east region)

Above
0/recharge 1 to 5 6 to 25 26 to 50 50
Airtel 0 17 6 0 0
Bsnl 12 0 0 0 0
Vodafone 1 19 4 0 0
Idea 1 17 6 0 0
Reliance 1 12 3 0 0

70
 Tata 0 8 0 0 0

20
18
16
0/recharge
14
12 1 to 5
10 6 to 25
8 26 to 50
6
Above 50
4
2
0
ea

ta
ne
l

nl

e
rte

nc
Bs

Ta
Id
fo
Ai

ia
da

l
Re
Vo

Analysis of recharge value sold

Area-1 (South-west region)

5001 to 10001 to
Below 5000 10000 25000 25001 to 50000 Above 50000
Airtel 24 2 2 0 0
Bsnl 10 0 0 0 0
Vodafone 17 8 3 0 0

71
 Idea 21 5 2 0 0
Reliance 15 4 0 0 0
Tata 9 1 0 0 0

30

25
B elow 5000
20
5001 to 10000
15 10001 to 25000
25001 to 50000
10
A bove 50000
5

0
ea

ta
l

nl

ne

ce
rte

Bs

Ta
Id

ia n
fo
Ai

da

l
Re
Vo

Area-2 (North-west region)

5001 to 10001 to
Below 5000 10000 25000 25001 to 50000 Above 50000
Airtel 19 2 0 0 0
Bsnl 8 0 0 0 0
vodafone 12 10 2 0 0
Idea 17 5 1 0 0
Reliance 13 0 0 0 0
Tata 8 0 0 0 0

72
 20
18
16
B elow 5000
14
12 5001 to 10000
10 10001 to 25000
8 25001 to 50000
6
A bove 50000
4
2
0
ea

ta
ne
l

nl
rte

ce
Bs

Ta
Id
fo

ian
Ai

da

l
Re
vo

Area-3 (North-east region)

5001 to 10001 to
Below 5000 10000 25000 25001 to 50000 Above 50000
Airtel 17 2 3 0 0
Bsnl 9 0 0 0 0
Vodafone 17 3 2 0 0
Idea 10 3 4 0 0
Reliance 10 3 0 0 0
Tata 6 0 0 0 0

73
 18
16
14 Below 5000
12
5001 to 10000
10
10001 to 25000
8
25001 to 50000
6
4 Above 50000
2
0

ea

ta
l

nl

ne

ce
rte

Bs

Ta
Id

ia n
fo
Ai

da

l
Re
Vo

Area-4 (Middle-east region)

5001 to 10001 to
Below 5000 10000 25000 25001 to 50000 Above 50000
Airtel 16 2 5 0 0
Bsnl 12 0 0 0 0
Vodafone 17 3 3 0 0
Idea 16 4 3 0 0
Reliance 12 3 2 0 0
Tata 8 1 0 0 0

74
 18
16
14 B elow 5000
12
5001 to 10000
10
10001 to 25000
8
25001 to 50000
6
4 A bove 50000
2
0
ea

ta
l

nl

ne

ce
rte

Bs

Ta
Id

ia n
fo
Ai

da

l
Re
Vo

9. Sales person visit (Efficiency of Salesman Of Distributor)

Area-1 (South-east region)

More than Not at all

Once Twice twice visited
Airtel 2 8 18 0
Bsnl 1 4 0 5
Vodafone 1 10 18 0
Idea 2 9 18 0
Reliance 3 5 10 0
Tata 1 5 3 0

75
 20
18
16
14 Once
12 Twice
10
8 More than twice
6 Not at all visited
4
2
0

ea

ta
l

nl
rte

on

nc
Bs

Ta
Id
Ai

ia
da

l
Re
Vo

Conclusion: From the above graphical representation, we can conclude that the
efficiency of sales person of Idea is highest, closely followed by Airtel
and Vodafone. So all three companies are much focus for their
distributor efficiency.

Area-2 (North-west region)

More than Not at all

Once Twice twice visited
Airtel 3 10 9 0
Bsnl 2 3 1 3
Vodafone 2 10 11 0
Idea 2 10 10 0
Reliance 3 5 6 0
Tata 2 6 1 0

76
 12

10

8 Once
Twice
6
More than twice
4 Not at all visited
2

ea

ta
l

nl
rte

on

nc
Bs

Ta
Id
Ai

ia
da

l
Re
Vo

Conclusion: From the above graphical representation, we can conclude that the
efficiency of sales person of Vodafone is highest, closely followed by Idea and Airtel.
The reliance is also come up with good strength for distribution after those three. So all
three companies are much focus for their distributor efficiency.

Area-3 (north-east region)

More than Not at all

Once Twice twice visited
Airtel 0 3 20 0
Bsnl 0 0 0 9
Vodafone 0 3 19 0
Idea 0 3 20 0
Reliance 0 2 12 0
Tata 0 4 2 0

77
 25

20
Once
15 Twice

10 More than twice

Not at all visited
5

ea

ta
l

nl
rte

on

nc
Bs

Ta
Id
Ai

ia
da

l
Re
Vo

Conclusion: From the above graphical representation, we can conclude that the
efficiency of sales person of Airtel and Idea are almost same, closely followed by
Vodafone. The reliance is also come up with good strength for distribution after those
three. So all three companies are much focus for their distributor efficiency.
Area-4 (Middle-east region)

More than Not at all

Once Twice twice visited
Airtel 0 1 22 0
Bsnl 1 0 0 12
Vodafone 0 1 23 0
Idea 0 1 23 0
Reliance 0 1 3 0
Tata 0 3 5 1

78
 25

20
Once
15 Twice

10 More than twice

Not at all visited
5

ea

ta
l

nl
rte

on

nc
Bs

Ta
Id
Ai

ia
da

l
Re
Vo

Conclusion: From the above graphical representation, we can conclude that the
efficiency of sales person of Airtel and Idea are almost same, closely followed by
Vodafone. But with comparison of other three region the performance of all
representative is somewhat low. So all three companies are much focus for their
distributor efficiency.

10. Manager’s visit (Efficiency of executives & Managers)

Area-1(South-west region)

More than Not at all

Once Twice twice visited
Airtel 7 0 0 21
Bsnl 0 0 0 10
Vodafone 8 0 0 20
Idea 9 0 0 20
Reliance 7 0 0 12
Tata 1 0 0 8

79
 25

20
Once
15 Twice

10 More than twice

Not at all visited
5

0 e

ea

ta
l

nl
rte

on

nc
Bs

Ta
Id
Ai

ia
da

l
Re
Vo

Conclusion: From the above graphical representation, we can conclude that the
efficiency of Executives & managers of Vodafone and Idea are almost same, closely
followed by Airtel. So all three companies are much focus for their distributor efficiency.

Area-2(North-west region)

More than Not at all

Once Twice twice visited
Airtel 7 0 1 15
Bsnl 0 0 0 8
Vodafone 8 0 1 15
Idea 9 0 1 14
Reliance 4 0 0 9
Tata 1 0 0 7
16
14
12
Once
10
Twice
8
More than twice
6
Not at all visited
4
2
0
80
e

ea

ta
l

nl
rte

on

nc
Bs

Ta
Id
Ai

ia
da

l
Re
Vo
Conclusion: From the above graphical representation, we can conclude that the
efficiency of Executives & managers of Vodafone is highest, closely followed by Idea
and Airtel. But with comparison of other regions the performance of all representatives is
somewhat low.

Area-3 (North-east region)

More than Not at all

Once Twice twice visited
Airtel 9 0 0 13
Bsnl 0 0 0 9
Vodafone 4 0 0 19
Idea 9 0 1 14
Reliance 7 0 0 6
Tata 1 0 0 5

81
 20
18
16
14 Once
12 Twice
10
8 More than twice
6 Not at all visited
4
2
0

ea

ta
l

nl
rte

on

nc
Bs

Ta
Id
Ai

ia
da

l
Re
Vo

Conclusion: From the above graphical representation, we can conclude that the
efficiency of Executives & managers of Idea and Airtel are almost same. Vodafone is
leader in this area. But with comparison of other regions the performance of all
representatives is somewhat low.
Area-4(Middle-east region)

More than Not at all

Once Twice twice visited
Airtel 9 0 0 14
Bsnl 0 0 0 12
Vodafone 4 0 0 19
Idea 10 0 0 14
Reliance 10 0 0 8
Tata 2 0 0 7

82
 20
18
16
14 Once
12 Twice
10
8 More than twice
6 Not at all visited
4
2
0

ea

ta
l

nl
rte

on

nc
Bs

Ta
Id
Ai

ia
da

l
Re
Vo

Conclusion: From the above graphical representation, we can conclude that the
efficiency of Executives & managers of Idea is higher, closely followed by Hutch and
Airtel. But with comparison of other regions the performance of all representatives is
somewhat low.

Findings

From the above data and the analysis we have made the final conclusion is as under:

Our main objectives of the project are:

 To assess market share of the Idea vis-à-vis other competitor.

 To analyze effectiveness of idea’s representative vis-à-vis other competitor.

 To study and analyze the reach of Idea’s distribution network vis-à-vis other
competitor.

83
 To assess the distribution depth of Idea vis-à-vis other competitor.

Conclusion:

 Idea is the major competitor in the Ahmedabad and has a leading position in many
areas like distribution reach and efficiency of distributor.

 As far as the reach of Idea’s distribution network is consult the idea has a leading
position. For distribution of the cards, the services and the reach are good enough.
There is some problem with some far areas but overall performance is focused.

 As far as the efficiency is consult the idea has a moderate position. For
distribution of the cards and the efficiency of the executives and the managers are
good enough. The work is focused.

Recommendations

 As far as network is consult, the performance of the Idea is weak, as compared to

the Vodafone and Airtel and Reliance. So, Try to improve on such factor via
increasing a technical support.

 Same problem is with call center, as far as customer care services are consulted,
the performance is not up to the mark again. Compare to the Idea, Vodafone and
Airtel has comparatively good performance. So, idea has to work upon it and try
to make it more efficient with training programs.

84
 The problem existed with the Middle East and some areas of Southwest region.
The retailers are quite dissatisfied with the distributor services. So, particularly for
those areas the frequency of visits and the quality of meetings of sales persons
should be increased.

 The performance of Idea is good, in particularly western part of the city, but still
in other areas like eastern part, the need of the more awareness campain is
required.

 Make a good relationship with retailers. Need to show and maintain great
company’s support. Which makes retailers themselves sell and promote
companys’cards. And the same helps to create better public image.

 The impact of Idea chitchat on customers is not powerful compared to Vodafone

so, try it to be strong by more promotions from the ways that has powerful impact
on public’s mind like Radio Mirchi, local cable and newspapers.

 Organizing of retail events (Retail Meet) that are opening a new Retail club.

 To expand the market the company should not only concentrate over the urban
areas, but also have look at the uncaptured rural market. And establish good offers
considering the villagers’ requirements.

 Try to get the trust of customer by providing better services and attractive
schemes. Every customer wants satisfaction from the product so give him or her
as much convenience as possible to make him or her permanent customer.

 The retailer whosoever are of the more recharge voucher purchasers, should
offered the extra benefits other than the regular one.

85
 The problem is with the Network and the call center services. Idea should work
upon the same and try to make it efficient with more technical support and
training programs.

QUESTIONNAIRE
____________________________________________________________________
_
Dear Sir/Madam,

Kindly extend your cooperation in filling this questionnaire and enable us

to conduct the research successfully.
Date: _________
Retail Name: ________________________
Road: ______________________________
Address: ________________________________________________
Pin Code: _______________
Type of the shop:

86
 1) Telecom shop
2) General / Provision store
3) Grocery shop
4) Pan shop
5) S.T.D. booth
6) Gift shop
7) Stationary shop
8) Others, please specify ________
______________________________________________________________
1. Which companies pre-paid cards, are you selling?

Cards FOD
(a) Airtel
(b) Bsnl
(c) Vodafone
(d) Idea
(e) Reliance
(f) Tata

2. Since how many years, you are in the business of selling pre-paid cards in the
market?
a) Less than 1 year
b) 1 to 3 years
c) 3 to 6 years
d) 6 to 9 years
e) More then 9 years

3. How many pre-paid cards of different companies you sell in a month?

0/Recharge 1 to 5 6 to 25 26 to 50 Above 50
(a) Airtel
(b) Bsnl
(c) Vodafone
(d) Idea
(e) Reliance
(f) Tata 87
 a) Idea _

4. What is the recharge value sold at your outlet per month (in rupees)?

Below 5001 to 10001 to 25001 to Above

5000 10000 25000 50000 50000
(a) Airtel
(b) Bsnl
(c) Vodafone
(d) Idea
(e) Reliance
(f) Tata
5. From whom you purchase the pre-paid cards of different companies?

From company’s sales-person From other dealers

(a) Airtel
(b) Bsnl
(c) Vodafone
(d) Idea
(e) Reliance
(f) Tata

A) If from other dealers, than what is the reason?

Discount Credit Distributor’s services

(a) Idea
(b) Vodafone
(c) Airtel
(d) Bsnl
(e) Reliance
(f) Tata

6. How frequently the salesman of distributor visits your shop in a week?

Once Twice More than Not at all

twice visited
(a) Airtel

88
 (b) Bsnl
(c) Vodafone
(d) Idea
(e) Reliance
(f) Tata

7. How frequently the company’s sales executives/manager visits your shop in a

month?

Once Twice More than Not at all

twice visited
(a) Airtel
(b) Bsnl
(c) Vodafone
(d) Idea
(e) Reliance
(f) Tata

8. Are you getting clearly and timely information from company’s sales
representative about different schemes launched?

Yes No
Trade Scheme
(a) Airtel
(b) Bsnl
(c) Vodafone
(d) Idea
(e) Reliance
(f) Tata

Yes No
Consumer
Scheme
(a) Airtel
(b) Bsnl
(c)Vodafone
(d) Idea
(e) Reliance 89
(f) Tata
9. Give the rank to the different companies, according to their performance in the
different area. (Use 6 to 1 rank. 6 for best and 1 for worst). You cannot repeat
ranks given once.

Airtel Bsnl Vodafone Idea Reliance Tata

Network
Company
schemes
Trade
schemes
Distributor
services
Call center
services

90
10. Who are the main buyers of the different company’s pre-paid cards?

Students Others
(a) Airtel
(b) Bsnl
(c) Vodafone
(d) Idea
(e) Reliance
(f) Tata

11. Please give your satisfaction level towards these companies.

Satisfied Unsatisfied Reason

(a) Airtel
(b) Bsnl
(c) Vodafone
(d) Idea
(e) Reliance
(f) Tata

91
  Area of Ahmedabad with their Pin codes

Area Cod No.

Air port 380012
Amraiwadi 380026
Behrampura 380022
Bapunagar 380024
Cantonment 380003
Civil Hospital 380016
Ellisbridge 380006
Gandhi Ashram 380027
Thakkar Bapa Nagar 382350
Ghatlodia 380061
Girdharnagar 380010
Isanpur 382443
Jantanagar 382449
Jivraj Park 380051
Juhapura 380055
Kathwada Maiz Product 382430
Khodiarnagar 382352
Krishna Nagar 382346
Kubernagar 382340
Maninagar 380008
Memnagar 380052
Naranpura 380013
Vatva 382440
Naroda 382330
Naroda Road 380025
Navjivan 380014
Navrangpura 380009
Narol 382405
Odhav 382410
Odhav Ind Estate 382415
Paldi 380007
Polytechnic 380015
Railway Pura 380002
Rajpur Gomtipur 380021
Rakhial Ind Estate 380023
Ranip 382480
Sabarmati 380005
Sabarmati Rly Colony 380019
Saijpur Bogha 382345
Saraspur 380018
Shah Alam Roza 380028
Shahibag 380004
Sardar Nagar 382475

92
Space Application Centre 380053
Thal Tel Road 380054

93
 BIBLIOGRAPHY

The reference books were used for this report were:

 Marketing Management (Eleventh Edition) by Philip Kotler published by Pearson

Education

 Business Research Methods (Eighth Edition) by Donald R. Cooper and Pamela S.

Schindler published by Tata McGraw-Hill.

The web sites referred for the report were:

 www.ideacellular.com
 www.idniantelecircle.com
 www.businssline.com/index.cellular.asp
 www.gov.in/telecomunication/grwoth.asp
 www.trai.com

94
 Glossary

FOD:
The advertising tools, which make show off the product. (Like wise, the stickers,
shelf, artificial model etc,) The glosign boards of the different company are not included
in the FOD.

95