A

Project Report on

Purchase Influencing Factor

Under the guidance of

Prof. Kiran RK

Submitted by

Ashish Tailor Manoj Sharma

Reg. No. 520930183 Reg. No. 520952847

In the partial fulfillment of the requirement

For the award of the degree of

MBA

Marketing

April-2011

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 PREFACE
This project provides a student with an opportunity to understand in full
the real life working environment, which is a bit different from normal
theory classes. Our class knowledge attains maturity and perfection
through application in the practical field application of management
principle in all branches whether personnel, finance, information
technology etc results in more sufficient and effective utilization of
Available resources. One learns through practice, management in best
learn if the students, handles it systematically, practical training is
supposed to serve as a starting point will held the student gain off
confidence and a familiarity with the subject.

The project is an integral part of MBA course in Institute of Business

Management and Research (IBMR), Ahmedabad. My topic of study
was “PURCHASE INFLUENCING FACTORS” I have no hesitation
in saying that this study has given me the confidence to face the real
Market world. I have tried my best to do honesty and justice to the topic
and any weakness and shortcomings are unintentional and are regretted.

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3
 ACKNOWLEDGEMENT
The success behind the completion of any good job is the support and the
joint team effort of a number of people. There are many persons without
help and cooperation; this project would not have been successful.
Guidance, cooperation and inspiration are the important factors in the
accomplishment of an assigned task. Our deepest sense of gratitude,
profound respect and sincere thanks to Prof. & Dr. R.K. BALYAN (Dean
of IBMR, Ahmedabad) and Academic Director Prof. B.N. Mehta, for
providing an opportunity of preparing and allowing us to use the
resources of the institution during this project. Without help, it would not
have been possible for me to reach this stage of the project.

Our special thanks to Prof. Poonam Arora project guide who has been
there for us throughout this entire project. She always had the answers to
our queries, be it regarding the departmental matters or be it regarding
any concept or terminology on the field. Their warmth support, practical
guidance and easy explanations not only regarding the project matters but
others too add to success of this project. Their continuous interaction and
support made it possible for the successful completion of the project. At
last we are obliged with the Institute of Business Management and
Research, Ahmedabad.

We would also like to thank our parents and friends for all their time-to-
time assistance. Last but not the least we would like to thank God
because without his divine grace nothing would have been possible.

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Ashish Tailor Manoj Sharma

Reg. No. 520930183 Reg. No. 520952847

Bonafide Certificate

Certified that this project report titled “Purcahse Influencing Factors”

is the bonafide work of Ashish Tailor (Reg. No. 520930183) and Manoj
Sharma (Reg. No. 520952847) who carried out the project work under
my supervision.

Signature Signature

Prof. B.N. Mehta Prof. Poonam Arora/ Prof. Kiran

Academic Director Project Guide

IBMR, Ahmedabad IBMR, Ahmedabad

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6
 Student Declaration

I hereby declare that the project report entitled “Purcahse Influencing

Factors” submitted in partial fulfillment of the requirements for the
degree of Masters of Business Administration to Sikkim-Manipal
University, India is my original work and not submitted for the award of
any other degree, diploma, fellowship, or any other similar title or prizes.

Place: Ahmedabad Date:

Ashish Tailor Manoj Sharma

Reg. No. 520930183 Reg. No. 520952847

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 Examiners Certification

The project report of Ashish Tailor and Manoj Sharma on “Purcahse

Influencing Factors” is approved and is acceptable in quality and form.

Internal Examiner External Examiner

Name: - Name:-

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TABLE OF CONTENTS
PAGE NO.
1. Objectives 10
2. Methodology 11
3. Vision, Mission and Ambition 12
4. Introduction of the company 13
5. Investor relationship 18
6. History of company 22
7 Data analysis 28
8. SWOT analysis 29
9. BCG Matrix. 44
10. Ansoff Matrix 45
11. Porters Model analysis 48
12. PEST analysis 52
13. Major players 58
14. Competitive Tactics of MTS 62
15. Competitive Analysis 63
16. Marketing strategy 65
17. Corporate strategy 68
18. Products offered by MTS 72

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19. Servoqual 80
20. Conclusion 84
21. Recommendation 85
22. Annexure & Bibliography 87-93

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 INTRODUCTION OF THE TOPIC
Factors that affect the consumer choice-

1.Culture

2. Friends

3. Attitude

4. Religion

5. Price

6. Advertisement

Factors that totally influencing the behavior of the buyers.

Consumer behavior is affected by many uncontrollable factors. Just
think, what influences you before you buy a product or service? Your
friends, your upbringing, your culture, the media, a role model or
influence from certaingroups?
Culture is one factor that influences behavior. Simply culture is defined
as our attitudes and beliefs. But how are these attitude and beliefs
developed? As an individual growing up, a child is influenced by their
parents or brothers, sister and other family member who may teach them
what is wrong or right. They learn about their religion and culture, which
helps them develop these opinions, attitudes and beliefs. These factors
will influence their purchase behavior however other factors like groups
of friends, or people they look up to may influence their choices

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of purchasing a particular product or service. Reference groups are
particular groups of people some people may look up towards to that
have an impact on consumer behavior. So they can be simply a band like
the Spice Girls or your immediate family members. Opinion leaders are
those people that you look up to because your respect their views and
judgments and these views may influence consumer decisions. So it
maybe a friend who works with the IT trade who may influence your
decision on what computer to buy. The economical environment also has
an impact on consumer behavior; do consumers have a secure job and a
regular income to spend on goods? Marketing and advertising
obviously influence consumers in trying to evoke them to purchase a
particular product or services .People from social status will also impact
their behavior. What is their role within society? Are they Actors?
Doctors? Office worker? And mothers and fathers also? Clearly being
parents affects your buying habits depending on the age of the children,
the type of job may mean you need to purchase formal clothes; the
income which is earned has an impact. The lifestyle of someone who
earns £250000 would clearly be different from someone who earns
£25000. Also characters have an influence on buying decision. Whether
the person is extrovert (out going and spends on entertainment) or
introvert (keeps to themselves and purchases via online or mail order)
again has an impact on the types of purchases made.

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OBJECTIVE OF THIS STUDY
The Indian communication scenario has transformed into a multilayer,
multi product Market with varied market size and segments. With the
basic phone service the value Chain has split into domestic/local calls,
long distance players and international long Distance players. Apart from
having to cope with the change in structure and culture. MTS has to gear
itself to meet competition in various segments basic services, long
Distance, international long distance and Internet Service Provision . It
has forayed into mobile service.

1. To find out the vision, mission and ambition of MTS

2. What marketing strategies MTS is implementing to increase the

market share?

3. To find competitors of MTS and the market share of the competitors

4. To find out how MTS react to the technology changes in

communication sectors.

5. To find out the factors that affects the purchasing decision.

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Research Methodology

1. Primary Data Sources-

Information collected firsthand from such sources as historical

documents, literary texts, Artistic works, experiments, surveys and
interviews .These all are the most important Sources to collect the data.
These data are relevant collected from the primary sources.

2. Secondary Data Sources-

A secondary source is a report on the findings of the primary source

while not as authoritative As the primary sources, the secondary source
often provides a broad back ground and readily Improves one’s learning
curve. Most text books are secondary sources. They report and
summarize

1. Internet

2. Newspaper

3. Magazine

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These all are the major secondary sources for collecting the data, data
collection by these Methods sometimes are not relevant.

3. Sampling-

Sampling is used during the project is cluster sampling.

Vision, Mission and Ambition

1. Vision :

Booming and prosperous India driven by hundreds of millions success

MTS will be the Driving force for bringing New India into the field of
opportunities. His drive for progress Arises from our deep urge to
explore to create to achieve, to change to improve.

2. Mission:

Enable New India’s continuous renewal we believe the power of

connectivity will Provide New India with a new sense of identify and
opportunity .We will provide the Connectivity in a simple effective and
affordable manner.

3. Ambition:

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We will encourage the use of connectivity to rise above social cultural,
occupational And economic challenges, thus becoming the undisputed
champion of those who have The courage to go against all odds.

COMPANY INTRODUCTION

Sistema Shyam TeleServices Ltd.

Sistema Shyam Teleservices Limited (formally known as Shyam telelink

limited) Limited (STL) was awarded the license to operate Basic
Telephony Services in Rajasthan under the fixed license fee regime in
1996. Sistema Shyam Teleservices Limited (formally known as
Shyam telelink limited) started its basic telephone services in Rajasthan
under the brand name “RAINBOW” in June 2000 at Jaipur. The
company migrated to the Unified License Regime in November 2003. In
the Unified License Regime, the company can provide basic as well as
mobile telephony services in the Telecom Circle of Rajasthan.

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Shyam offers its services in more than 100 cities, and has one of the best
brand recalls in Rajasthan Shyam offers to its customers, services based
on multiple technologies, which has been possible because of exhaustive
optical fiber backbone of over 3,500 Kms. This has helped STLL to grow
as an integrated service provider.

Presently the company has received the licenses for all 22 circles in
India. Sistema Shyam Teleservices Limited (formally known as Shyam
telelink limited) has brought the best technology to the doorstep of the
people of Rajasthan. STL has tied up with various world leaders like
lucent Technologies, IIT Chennai, IBM, Sun Microsystems etc. The
company is listed on the Delhi, Mumbai, Kolkata, Saurastra, and other
national stock exchanges .The basic objective of Sistema Shyam
Teleservices Limited (formally known as Shyam telelink limited) is to
provide one window access to Basic Telephony, Broadband Internet,
Entertainment, and E/M- Commerce through high speed state-of-the-art-
network. Sistema Shyam Teleservices Limited (formally known as
Shyam telelink limited) is providing connectivity to its subscribers using
both wireless and wired media in access network. The wireless
connectivity is being provided using Code Division Multiple Access
(CDMA), and or CorDECT.

Russian Telecoms and holding firm Sistema acquired a 10% stake in

Sistema Shyam Teleservices Limited (formally known as Shyam telelink
limited) for a total cash consideration of US$ 11.4 million at the end of
September 2007. Sistema, aims to become one of India's top five mobile
operators and have 60m subscribers by 2017.Sistema is the largest

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private sector consumer services company in Russia and the CIS. It was
founded in 1993, today it has the 7th largest subscriber base in the
World, and the corporation develops and manages a portfolio of market-
leading businesses in selected service-based industries. In total,
companies controlled by Sistema serve more than 80 million consumers
in Russia, the CIS and Eastern and Western Europe. Sistema's shares are
listed under the symbol "SSA" on the London Stock Exchange, under the
symbol "AFKS" on the Russian Trading System (RTS) and the Moscow
Interbank Currency Exchange (MICEX), and under the symbol "SIST"
on the Moscow Stock Exchange (MSE).In October 2007, Sistema signed
a share purchase agreement for the acquisition of an additional 41% stake
in Sistema Shyam Teleservices Limited(formally known as Shyam
telelink limited)and a call option agreement, which gives Sistema the
right to increase its stake in Sistema Shyam Teleservices Limited
(formally known as Shyam telelink limited)from 51% up to a maximum
of 74%. the Russian company has been scouting for a foothold in India
for several years now. Earlier, Sistema had tried to pick up a stake in
Aircel Cellular, but the deal fell through. It was also in race for
Hutchison's stake in Hutch-Essar. Sistema, which was founded in 1993,
is the largest private sector consumer services company in Russia. Later
in December 2007, Sistema received an approval for the acquisition of
the blocking stake in Sistema Shyam Teleservices Limited (formally
known as Shyam telelink limited) from the Foreign Investment
Promotion Board (FIPB) of India. As a result of the acquisition of
the additional 41% stake, the overall purchase price totaled US$ 58.1
million. By June 2008 Sistema has upped its stake in Shyam Telelink, to

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73.1% from 51%. Sistema plans to invest USD 5bn billion dollars in
India in the next three years, targeting telecoms but also real estate, high
technology and banking. Sistema is one of several foreign players keen to
establish themselves in India's booming telecoms market.

Market Scenario:

The State of Rajasthan is one amongst the largest Telecom circles and
registering an incredible growth in Fixed Line as well as Mobile

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telephony. The current tele-density trend shows that there is still
immense potential for Fixed & Mobile Services in Rajasthan province.
The total number of phones in Rajasthan had surpassed the figure of 9.86
Million by March 2007. The total phones consists 76% Mobile phones
and 24% fixed phones. The main competitors in Wire line Fixed
Telephony are BSNL and Airtel and in Mobile Telephony (GSM
/CDMA), faces competition from Airtel, Vodafone, Reliance, Tata and
Idea. The Company is having very aggressive plans to move forward in
Broadband product category by deploying ADSL network in the state.

Sistema Introduction:

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Sistema is the largest public diversified corporation in Russia and in CIS,
which manages fast growing companies operating in the consumer
services sector and has over 100 million customers. Sistema develops and
manages market-leading businesses in selected service-based industries.
Since its inception in 1993 Sistema has evolved into an international
group with expanding geographical representation focusing on consumer
services, through organic as well as inorganic growth. Subsequent to an
IPO in February 2005, 19% of its shares are traded on London Stock
Exchange in the form of Global Depository Receipts (GDR) under the
symbol SSA. It is also listed on the Moscow Stock Exchange and the
Russian trading System.

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Investor Relations :

Sistema Shyam Tele Services Limited Equity Structure:-

Sistema (LSE : SSA) –

73.71%

Shyam Group – 23.79%

Public – 2.5%

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 ABOUT THE COMPANY

Sistema Shyam Tele Services (SSTL) is a joint venture company

between Sistema {LSE: SSA} of Russia and Shyam Group of India.
Sistema is the majority share holder in this joint venture with a 73.71%
equity stake, along with the Shyam Group, holding a 23.79% stake and
the rest 2.5% being public partake. SSTL has spectrum to provide mobile
telephony services in all the 22 circles across the country. Presently
SSTL offers mobile telephony services in the Rajasthan, Tamil Nadu,
Kerala as well as the Kolkata circles. In a recent development, SSTL tied
up with Mobile Tele Systems OJSC of Russia to bring the globally
acclaimed telecom brand-MTS-to India. MTS is the 8th largest telecom
brand in the world and has recently been voted as the 71st ranked brand
out of 100 top global brands in the world by Mill ward Brown.

GROUP STRUCTURE

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On August 14, 2006, MTS’ Board of Directors unanimously approved
the implementation Of the Company’s new management structure in
order to strengthen the strategic and Operational functions through the
creation of a simple and transparent structure. The change appropriated
fiscal responsibility on the business unit level through the Introduction of
KPI targets required to be completed by the respective management.

The structure now includes:

➢ Corporate Center with control over strategic and investment

decisions, as well as brand development, on Group level.
➢ Business unit “MTS Russia” with control over operations in
the ten macro-regions;
➢ Business unit “MTS Ukraine”;
➢ Business unit “Foreign subsidiaries” with oversight over
MTS operations in Uzbekistan,
➢ Turkmenistan, Armenia and Belarus.

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COMPANY PROFILE:
MTS is the leading mobile phone operator in Russia and CIS. A top 10
global mobile operator. One of the 100 most powerful brands in the
world. MTS, together with its subsidiaries, expanded its total subscriber
base to over 95 million as at december31, 2008.

The Russian regions together with Ukraine, Uzbekistan, Turkmenistan,

Armenia and Belarus, in which MTS and its associates and subsidiaries
are licensed to provide GSM services, constitute a total population of
more than 230 million people. Continued development of our value
added services (VAS) and high speed networks.

It is focused on delivering the highest quality products and services to its

customer base, Including VAS services such as: Voicemail, Text, SMS,
MMS, Internet, News, Entertainment, Email, Ring-back tones etc. MTS

26
has been ranked as one of the most transparent companies in Russia by
standard and poor’s.

MTS was named winner of the “The Best Investor

Relations by a Russian Company Award” at the 10 th
annual IR MAGZINE Award.

HISTORY OF MTS IN INDIA

Sistema Shyam TeleServices (SSTL) is the fastest growing telecom

company In the competitive Indian market, with over 4 million voice
subscribers and 70,000 data customers. SSTL has tied up with Mobile
TeleSystems OJSC, a JSFC Sistema company of Russia, to bring the
globally acclaimed telecom brand – “MTS” – To India. MTS is the 8th
largest telecom brand in the world. Millward Brown has recently voted
MTS as the 72nd ranked Brand from among the Top 100 Brands in the
world. SSTL is a joint venture company between Sistema {LSE-SSA} of
Russia and Shyam Group of India. Sistema is the majority share holder in

27
this joint venture with a 73.71% equity stake, along with the Shyam
Group, holding a 23.79% stake and the remaining 2.5% being held by the
public. SSTL has been allocated spectrum to provide mobile telephony
services in 22 circles across the country. Presently SSTL offers voice &
data services in Rajasthan, Bihar/Jharkhand, Kolkata, West Bengal &
Sikkim, Chennai, Tamil Nadu, Kerala, Karnataka, Mumbai,
Maharashtra/Goa, Haryana/Delhi & NCR. With the launch of the Andhra
Pradesh circle, SSTL will be in 12 circles.

Highlights
➢ MTS, the mobile telecom service of SSTL, has seen its subscriber
base cross Million in April 2010 and the numbers continue to grow
exponentially.
➢ MTS has completed a year of its operation in India in March
2010. It is the fastest growing telecom brand in the country.
➢ The high-speed mobile broadband service, MBlaze, was launched
in November 2009 and has seen tremendous market acceptance with
over 70,000 satisfied customers in a Short span of time. In April
2010, MTS launched MTS TV for MBlaze customers.

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 ➢ SSTL was the FIRST telecom company to launch mobile
broadband internet services with speeds up to 3.1 Mbps in Jharkhand
in April 2010.
➢ MTS unveiled its green data centre in Chennai in April 2010.
➢ In April 2010, Sistema JSFC has been recognized as the ‘Best
Russian company of 2009’ operating i
➢ MTS now has 5 Million subscribers n India.
.

Gurgaon, India - 23 June 2010. MTS, the mobile telephony services

brand of Sistema Shyam Teleservices Limited (SSTL), has crossed the
milestone of 5 million subscribers In India. To mark the milestone
achievement, MTS has offered “Unlimited MBlazer” to the new and
existing customers of its mobile broadband service, MBlaze. Brand MTS
has notched up a milestone subscriber base, increasing from 1 million To
5 million subscribers in just 361 days. MTS also launched its data
services in November 2009 and already has over 100 thousand
subscribers.

Commenting on the occasion, Mr. Vsevolod Rozanov, President and

Chief Executive Officer of SSTL said, “This achievement is a reflection
of the speed and spirit of MTS to achieve its special place in Indian
market. We are determined to offer the new data products, further
enriching their telecom experience.”

On this special occasion MTS is launching a Special Offer for its

increasing and loyal customers. MTS mobile high speed internet service,
MBlaze will be introducing another innovative product ‘Unlimited

29
MBlazer’ with which customers can avail unlimited data access for 30
days at a price of Rs 999/-. This is a first of its kind offering in wireless
high speed data services and is applicable for new and
Existing users.

Speaking on the achievement, Mr. Leonid Musatov, Chief Marketing

Officer of SSTL said, “We are proud to have been able to reach out to 5
million Indians through Our products and services. As a special token of
gratitude for our loyal customers, we will be offering the special voice
and data products for our existing and new subscribers.”

MTS is continues to expand its presence across India by offering quality

voice and data services at the most competitive and affordable price.
MTS is a front-runner in introducing world-class, cutting-edge
technologies in India to enhance the customer’s experience. The current
EVDO technology is at par with the 3G services, which are yet to be
rolled out by other telecom operators. MTS has recently been conferred
with ‘Fastest Growing Data Operator Award’ by CMAI at the National
Telecom Awards 2010.

[Shyam Sistema] CDMA Wireless service provider in a release just

minutes ago has created history in India offering FREE calls to all MTS
subscribers within Rajasthan for a whopping 999 days. Offer valid for
new as well as existing customers on recharging for Rs 999 where in you
will get talk time worth Rs 500 and Lifetime.

Using MBlaze dongles and HSD (high speed data) compatible handsets,
MTS customers can enjoy live and on demand video; high quality audio
or video downloads; and can access news, entertainment, sports and
30
regional TV channels. MTS, the CDMA mobile service of Sistema
Shyam TeleServices Limited (SSTL) has announced its High speed
mobile broadband service MBlaze in seven towns of Rajasthan — Alwar,
Bhilwara, Ajmer, Bikaner, Kankroli, Banswara and Rajnagar.This latest
roll out extends the current MBlaze footprint to 15 towns across the state,
and there are plans of expanding to 33 towns within the next 15 days. For
this the company will spend Rs 25 crore. Sandeep Yadav, the chief
operating officer of Rajasthan and Punjab circles at SSTL, Said, “In the
next 15 days we plan to take the count to 33 towns across the state.

We have earmarked close to Rs 25 crore for expansion of our data

business across the state.”MTS MBlaze offers data speeds of up to 3.1
Mbps on its CDMA network, on which It also offers live TV and video
on demand services.

The operator provides high speed mobile broadband services in over 100
Indian Cities including the five metros. MTS is rapidly expanding its
high speed data (HSD) network.

➢ The network operator’s tariff plans start at about Rs 200, and

unlimited data plans start at nearly Rs 1,000, valid for 30 days.

31
➢ MBlaze also offers free surfing on popular websites such as Yahoo,
Wikipedia and Make My Trip.

➢ The company has tied up with Hewlett Packard for a deal, according
to which if you purchase an HP laptop, you can get MBlaze post paid
or pre paid for Rs 1,000.

➢ MTS India the CDMA teleservices from Sistema-Shyam Teleservices

Limited (SSTL) has planned to roll out postpaid plans
in Rajasthan circle. MTS India, is a new player in the sector and
within a short span of just 18 months, MTS has shocked the
marketing gurus by attracting as many as 3 million subscribers in
eleven circles which include Chennai, Rajasthan, Kolkata, Delhi and
Karnataka to name a few.

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 Postpaid Plans

➢ MBlazer Unlimited 999 RCV – Rs. 999/- unlimited usage with a

validity of 30 days

➢ Mblazer Unlimited 999 FRC – Rs. 999/- unlimited usage with a

validity of 30 days

MTS Dealers in Gurgaon:

MTS Broadband service available in Gurgaon, the Sixth largest city of

India located in state Haryana. Gurgaon is the well known financial
center. Here is the list Of MTS Broadband Dealers in Gurgaon city and
nearest areas.

MTS Dealers in West Bengal:

West Bengal, the fourth most populous state of India, will experience
the hi speed Broadband Internet connection with unlimited plans and
speed of 3.1 Mbps. MTS broadband is the Broadband service provider in
India with very good speed and at affordable Tariff.

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MTS Dealers in Salem:

Salem is another major city of Tamil Nadu state with population more
than 15 lakh. MTS has its mobile as well as broadband service in Salem
City .MTS Offers Hi Speed wireless internet with speed up to 3.1
Mbps.

MTS Dealers in Faridabad:

Faridabad is the district place in Haryana located near Delhi. Now MTS
Broadband Mblaze service is available in Faridabad. with 3.1 Mbps
Speed.

34
1. Are you aware of of MTS product?

This survey represents that 82 respondent are aware of the MTS product.

2. If yes how do you come to know about this product?

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 After analyzing this graph we can say that advertisement is major factor
.People came to know about MTS by advertisement.

3.Have you used MTS product?

This survey represent that 46 respondents used this product but 54

respondents never used this product.

36
 3. If you are a customer of the MTS product. How long have you been buying it.

This graph represents that 7 have been using it since 6 month,11 have been using
from 0- 1 year,13 have been using it from 1-2 year and 15 have been using since 2
years.

4. Do you think the advertisement of MTS product has major influence in your
buying decision

37
 13 respondent are agree that advertisement has major role in buying the MTS
product but 11 are average.

5. Please specify about the following factors which influence your purchase
decision.

Quality is major factor to buy this and afterward family and friends opinion is change
our decision.

38
 6. Please specify your satisfactory level of MTS product based on
the following features.
1..price 2.quality 3.brand name 4.availability 5.speciality

11 respondent are satisfied by its brandname ,but 11 respondent are

satisfied by its high quality.

7. How satisfied are you with MTS product compared with others in
the market?

39
13 respondent are highly satisfied,but 12 are dissatisfied after using this
product.

8. Has your friend/ relative opinion influence you to by MTS

product.

40
SWOT ANALYSIS

41
42
 Strengths of the company:

Experience in Russia:

MTS is having a huge experience in this field of business as they have

been showing their presence since 1993 and a great customer experience
in Russia and in other countries. Experience of MTS will help huge
market.The cellular telephony market is presently expanding at a
phenomenal / whopping rate every year and there is still vast scope for
MTS to enter /expand in this market.

Other opportunities:

India is the second-largest telecommunications market in terms of sheer

numbers of potential subscribers, and one of the fastest growing in the
world .An expand in Indian economy with increased focus on the
services sector. Population mix moving favorably towards a younger
age profile. Urbanization with increasing incomes.MTS can cover all the

43
22 telecom circles of India through its adequate strategies n Investment
in network Coverage. Creating customer awareness of its products
through advertising them to plan their strategy for Indian market
accordingly.

Pan India footprint:

MTS is going to offer the most expansive roaming network. Letting you
roam Anywhere in India with its Pan-India presence, and trot across the
globe with International Roaming spread in over the networks. The
mobile services group Provides CDMA mobile services across India in
11 telecom circles.

Low tariff plan:

MTS is coming with one of most cheapest tariffs in telecom sector by

providing ½ paisa second call and in some region plan gets even cheaper
½ paisa 2 seconds.MTS is also launching a very different and attractive
Scheme i.e...100000 minute free talk time with every new connection.

Innovative schemes:

44
Sistema Shyam Teleservices have launched a special offer in Rajasthan,
wherein a MTS mobile customer can make unlimited outgoing calls to
any MTS mobile within the state for 999 days just by paying Rs. 999.

Weakness of this company

New entrant in Indian Telecom Market:
As MTS is a new entrant in the Indian telecom sector not having a good
customer base, it will face to a cut throat competition from competitors..

Price competition for TATA and AIRCELL:

MTs will face competition from TATA and AIRCELL because they are
also having some better scheme than MTS.

DOCOMO is providing ½ paisa second to almost all the circles by just

getting a voucher. AIRCELL is also coming up with very attracting
packages with low tariffs.

Least Brand Retail in customers mind in India:

45
As the company is a new entrant in the Indian cellular market customer
will have a perception of had network and not a good customer service.

Less Network coverage across telecom circles of India:

As MTS is spreading its network coverage very fastly amongst all the
circles when they operates but still it is facing a had network coverage
problem.

Opportunities for the company

Latest technology and low cost advantage:

MTS can enjoy its latest technology and low cost advantage. The number
of cities, towns and villages it has covered already works to its advantage
as putting more base situations for cellular coverage in these area comes
with negligible marginal cost. Besides such cost advantages, it has also
other cost advantages for the latest cellular technology.

46
Huge market:
The cellular telephony market is presently expanding at a phenomenal /
whopping rate every year and there is still vast scope for MTS to
enter /expand in this market.
Besides there is a vast rural segment where the cellular service have not
made much head way and many customers are looking towards MTS for
providing service to them. With its presence even in the remotest areas,
MTS can gain a big market share in this segment.

Other opportunities:

India is the second-largest telecommunications market in terms of sheer

numbers of potential subscribers, and one of the fastest growing in the
world .An expanding Indian economy with increased focus on the
services sector. Population mix moving favorably towards a younger age
profile. Urbanization with increasing incomes. MTS can cover all the 22
telecom circles of India through its adequate strategies n Investment in
network Coverage.

Threats for the company

Competition from other cellular’s:

47
 It is time for MTS to improve/expand its cellular services.
Fierce and cut-throat Competition is already in place with the markets
ever abuzz with several tariff reductions an announcement of attractive
packages, trying to grab most of the mind share of the “king- the
consumer”, whose benefits are increasing with passing of everyday. If
MTS will not be innovative and agile, its cellular service will be a flop. It
needs to be proactive with attractive packaging, pricing and
marketing policies lest its presence in the market be treated with disdain
by the private cellular companies. The launch of WLL services by
Reliance communication has aggravated the situation.

Other threats:

1. A new entrant in the market.

2. Less product awareness in the market.
3. Brand perception.

48
BCG MATRIX FOR MTS

49
 BCG Matrix is used to find out the relative growth prospects
of the product line MTS lies in “Question marks “category because it
market growth is high but its current Market share is low. Company has
to decide whether to move to “cash cows “category or to Stars category
with high market growth and high market share.

ANSOFF MATRIX

50
To portray alternative corporate growth strategies, Igor
Ansoff conceptualized a matrix that focused on the firm’s present
and potential products and markets /customers.

He called the four product-market strategic alternatives.

Market penetration (existing market + existing product),

Market development (existing product + new market),
Product development (existing market + new product), and

51
Diversification (new product + new market)

The company should follow all four strategies depending on the demand
and Product as indicated in the matrix. The company perhaps needs to
focus more on the comparatively neglected area of diversification.

Market penetration:

Market penetration is the name given to a growth strategy

where the business focuses on selling existing products into existing
markets. As it is been clear from the above definition that market
penetration is the strategy were company try to maintain their share
in the existing market with their existing products .As MTS is a new
entrant in the Indian cellular market, SO they are not into the market
penetration strategy.

Market development:

Market development is the name given to a growth strategy where

the business seeks to sell its existing products into new markets. As MTS
has target a new market for its product so they are following the market
development strategy in which they have exported there product to India.

52
Company has already made its presence in Uzbekistan, Belarus, Russia,
Ukraine, Armenia, and Turkmenistan and now in India.

Product development:

Product development is the name given to a growth strategy

where a business aims to introduce new products into existing markets.
About product development we are not sure whether they follow the
product development strategy or not.

Diversification:

Diversification is the name given to the growth strategy where

a business markets new products in new markets.

PORTERS MODEL:

53
The industry structure has become relatively unfavorable compared to
earlier monopolistic time in Russia and other countries where MTS
operate

54
55
The earlier pattern used to be that the national telecom company used to
own every segment of the value chain till the international gateway. With
liberalization there was competition in virtually every segment. There are
companies that provide local connectivity, those that function as long

56
distance carriers, and those that provide only gateway links. Some
integrated players operate in all segments. The intensity Of competitive
pressures across the chain is reflected in the downward spiral being
Witnessed in tariffs and prices to customer. The value chains for cellular
mobile service and Internet Service Providers (other than cable based net
connections) are similar in as much as the calls reach the destination
through similar local loop, long distance and international gateway.

57
PORTERS ANALYSIS

Threat from competitors: (High)

As there is a huge competition in the market, MTS will face a

cut throat competition from its well stabled competitors, As reliance is
already there in the CDMA market with more than 3.95 % of market
share.

Customer bargaining power: (High)

Lack of differentiation amongst the service providers:

MTS provides the same service what others provide this lack of
differentiation gives customer a edge to bargain with service provider,
they can switch to any other provider any time they want. Cut throat
competition also offers a great deal to bargain. And the switching cost is
also very low; all these situations are creating problems in the growth of
company.

Suppliers bargaining power: (Low)

Bargaining power is the ability to influence the setting of

prices. The more concentrated and controlled the supply, the more power
it wields against the market.MTS will have a variety of suppliers to

58
choose from, because most of the suppliers would be eying to get the
contract to be the supplest of the company. Branded suppliers are having
a bargaining

Power because their products have captured the vast market, As the
switching cost is very High in this field which gives company a strong
point.

Threat of substitutes: (High)

Market for MTS, Because there are already players exist with a huge
market share with bet the threat of the substitutes for MTS is very high
in Indian brand perception ,It will take time for MTS to win the trust of
its customer and gain market share.

Buyers’ willingness is very low about the company,

substitutes are there and they are very strong in the market. Performance
of the substitute is very in the market so MTS will have to prove they
have strong competitor to survive in the market.

Threat of new entrant (High)

Threat of new entrant is always there for a company as

MTS is itself a new entrant In the cellular market, if any other provider
enters the market with a new strategy that will affect the overall strategy
of the company, cost of infrastructure cost will go and other cost will also
go up with this.

59
 PEST ANALYSIS

60
61
62
It is a systematic examination of all 4 levels of the environment with at
least three purposes: Detecting important economic, social, cultural,
environmental, health, technological, and political trends, situations, and
events.
Identifying the potential opportunities and threats for the institution.
Implied by these trends, situations, and events. Gaining an accurate.
Understanding of your organization’s strength and limitations.
A PEST analysis of the macro environment indicates that economic (a
phone call being a cheaper way to stay in touch than outstation travel
For example) and social factors (working outside the home town) have
Forced the pace of utilization of technology (Public Call Offices, mobile
Phones, networked companies).Increasing customer awareness Has
raised expectations and vocal demands are being articulated for
consumer rights; such political factors have in turn impacted the
competitive environment by way of entry of private players, independent
regulation, and a policy framework tilted towards a level playing field for

63
new entrants. A near environment analysis indicates that the competitors
are becoming active resource rivals (political and financial) apart from
applying. Pressures as customer rivals. The Customer has, needless to
say, benefited from increased choice from within the communications
services basket itself.

Political factor:

High entrant fees in 3G market:

In India legal obligations are there regarding 3G auction and bidding

which limits it to the existing players and not available to the new
entrants this political factor forbids the MTS entry in to 3G services.

Reduction in tariff plan:

Earlier the tariff rates were higher due to high taxes, but now it has
become lowest in the world by tax reforms.

64
Extension of license period:

Government has replaced the license fees with revenue sharing scheme
And extended the license period from 10 year to 20 years. A company
Can merge with another operator only after 3 years of receiving license.
This rule can be eased to help MTS merge with established players.

Economical factor:

India has a very high potential in all areas of its economy, it is one of the
Most vibrant and fastest growing telecom market in the world enjoys the

Sturdy growth rate of 10 million mobile users every month .India

has a moderate but still a healthy growth rate which will provide a good
Base for MTS to grow with growing economy.
The Gross Domestic Product (GDP) in India expanded at an annual rate
Of 7.20 percent in the last quarter.
Inflation rate is also a key factor for MTS as inflation rate is 16.22% in
India, company is keeping this factor into the consideration to get the
Most of the benefits. Another economic factor for MTS will be the Cost
of 3G license, as in India the cost of getting a 3G license is Very high.

Social factors:

Perception of new entrant in the market:

65
As MTS is a new brand in the Indian market it will be facing problems
Regarding the perception of a new entrant, this image will adversely
affect the buying capacity of customers, they will think about the
Network, and the kind of service they will get after sale.

Social status:

Anything customers buy that reflects their social status ,as MTS does
Not have a reputation in this market although it has a strong customer
Base in Russia and a great image of its products ,people will be
conscious about their social status this will affect company’s growth
adversely.

Word of mouth advertising:

Company will have a threat of mouth advertisement in which people will

Get to know about the company’s performance it can affect the growth
Of the company.

Other social factors:

MTS is employing young and dynamic professionals to attract young

Generation .MTS are focusing on the neglected segments of the society,
Providing mobile PCO (chalta phirta PCO) to physically challenged
Individuals. Connect A-school A, Hospitals coin collection boxes and
Information kiosks at airports and bus stands.
66
MTS is focusing its attention on society such as family, friends,
Colleagues, neighbors and the media by providing attractive schemes.
MTS is targeting the young generation in the country.

Technological factor:

The business in a country is greatly influenced by the technological

Development. The technology adopted by the industries determines the
type and quality of goods and services to be produced and the type and
quality of plant and equipment to be used.
As MTS has seen its competitors and the kind of technology being used
By them, so company is aiming to come up with something new that is
Not been available to its competitors.

MTS use its technology in many ways, they have:-

➢ MTS is the only company with CDMA technology based services.

Other CDMA players in the country also have GSM spectrum.

➢ 3G Technology:

67
MTS is all set to launch third generation (3G) technology-based mobile
TV services in the country over the next few weeks. Though other
Cellular providers have also launched mobile TV services, the uptake
Has not been great since most of the existing offerings are based on a 2G
Platform.

➢ GPRS /WAP:

MTS Connect” service provides a simple and convenient access to

the Internet through the technology of data transfer GPRS/EDGE.

68
Major Players in Telecom Industry

1. RELIANCE

2. BHARTI AIRTEL LIMITED

3. TATA TELESERVICES

4. IDEA CELLULER

5. VODAFONE

6. BSNL

69
 Analysis of telecom players

Telecom industry is a vast field today we include fixed phone, wireless

phone, internet service, VSAT, DTH and service providers in telecom
industry but for my convenience I focus only wireless phone service
only. In wireless service there are many companies out of them few are
below---

1.RELIANCE COMMUNICATION

Reliance Communication Limited is a part of the Reliance Anil Dhiru

bhai Ambani Group. Reliance Communication is India’s largest
integrated fully Converged communications service provider in the
private sector with an individual, enterprise & customer base of over 40
million. Reliance Communication is one of the top two operators in the
Indian wireless market, the largest growing wireless market in the world.
Reliance com is one of the largest wealth craters with market
capitalization of over Rs.1, 00,000 Cr.

Reliance Communication has the largest capacity network in the country,

the most future ready integrated and converged network that can support
even following 3G, 4G telephony and broadband services. More than half
of the World’s population connects with each other on the Reliance

70
network. Every Third call that comes in India is carried on Reliance’s
network. Reliance Communication is the preferred network of over one
million customers in USA, UK, Canada, Australia and New Zealand.

2.AIRTEL

Bharti Airtel Limited is a leading Indian telecommunication service

provider with 49.01 million customers. The company has three strategic
business units’ i.e. mobile services, broadband and telephone services
and enterprise services.

Mobile services unit consists largest portion of the company business,

both in terms of total revenues and total customers, Bharti, Airtel offers
mobile services In all 23 telecom circles of India and is therefore the first
private mobile Services operator to have an all India presence. The
Company’s mobile Customer base accounts for a 22.9% share of the
overall wireless (GSM+CDMA) market as on march 31, 2007 and has a
presence in 4676 census towns and in 2,07,327non-cenus towns and
villages, covering an addressable population of 59% of the total
population.

Broadband and Telephone Services (B&TS) provides a wide gamut of

voice And data services through a wire line network. Bharti Airtel is the
first private Operator to provide fixed line and broadband services over
the same copper Wire. It provides innovative, cost effective solutions for
corporate, small business enterprises and individual homes. Given the

71
high cost of creating a Wire line network, B&TS has adopted a focused
approach to network creation and customer’s acquisition. Currently
B&TS provides services in 94 cities Across 22 telecom circles. The unit
had 1.75 million voice customers. It has a capacity of more than 3
million tags with a cumulative investment of over Rs.40 bn.

3. TATA INDICOM

TTML is a part of the Rs. 1, 20,000 crore (US $ 29 billion) Tata group
that has over 87 companies, over 3, 30,000 employs and More than 2.8
million shareholders. Most of the people think that TTML and TATA
Indicom both are the same companies but it is not true, TTML is a listed
Company and it is a SBU of TATA Indicom, and TTML presence in
Maharashtra and Goa only.

Formally huge tele.com (India) ltd. That company was renamed to Tata
Teleservices Maharashtra Limited, subsequently to the acquisition of
70.85% equity shareholding by Tata group in December 2002.

TTML provides mobile, fixed wireless phone (FWP), public telephone

booths and wire line services. Broad band data network & application
services include leased line, DSL, Wi-Fi, Ethernet, managed gateway
services and conferencing services. TTML is a market leader in
commercial, residential and PCO market in Maharashtra circle.

4. IDEA

72
IDEA cellular is a part of the Aditya Birla Group, India’s first truly
multinational corporation. IDEA cellular is a leading GSM mobile
service operator with pan India licenses with a customer base of 40
million in 15 services areas.

Idea enters in market so late but it gain better competitive advantage

in market because the support of its parent group and by adopting the
focus market strategy.

COMPETATIVE TACTICS OF MTS

COMPETATIVE TACTICS OF MTS

MTS is providing “A cheaper Tariff “plan to attract huge customers in

the market and to increase its Market share.

➢ MTS is also offering internet based services like “Mblaze”i.e

wireless internet services to its customers to have a firm grip in
broadband market too.

➢ MTS is also offering 10,00,000 free MTS minutes to its new

Subscribers in order to gain customer’s attention in the market and
to make their presence felt in the market.

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 MTS is offering all these services at cheap and affordable prices as
compared to its competitors in order to break through the telecom
market captured by its competitors.

COMPETATIVE ANALYSIS

COMPETITR ANALYS
Service provider Subscribers market share in %
Share in % Revenue market
1 BSNL 12% 9%
2 Reliance 17.90% 15.20%
3 Bharti 22.60% 29.10%
4 Vodafone 17.4% 20.8%
5 Idea 11% 12.7%
6 MTNL 0.16% 2.80%
7 TATA 9.3% 7.2%
74
8 Aircel 5.90% 4%
9 MTS 0.02% 0.03%
10 Spice 2.49% N.A
11 HFCL 0.10% N.A

As it is clear from above data that MTS has to go a long way because
Players already exist in the market having strong and huge market share
With latest technology and with better customer services, As MTSs close
Competitors are Tata Docomo, Aircel and Spice with a strong customer
Base and a better market share of 9.3%, 5.90% and 2.49% where MTS‟s
Market share is only02% .Close competitors are having similarities in
Their services as Tata Docomo provides the same call rate toits
Subscribers as MTS provides and Aircel also have some innovative
Schemes like pocket internet and targeting the young generation of the
Market as MTS has done, MTS is planning its strategies
accordingly.MTS is coming up with more creative ideas by providing
Services at low tariffs and innovative schemes like 1000000 minutes on

75
Every new connection to capture the market. Currently MTS‟s revenue
Share & market share is .02% & .03%.To outflank the competitors.

MTS is trying to be as faster as they can in terms of covering the market

By entering all the circles, currently they are present in 11 circles of
India and expanding very fast.

MARKETING STRATEGY
NG STRATE
The brand was developed to attract customers in variety of culture and
socio-Geographic and income segments with a consistent message of
quality and leadership. To facilitate the further growth and recognition of
the brand, MTS recently adopted new brand standards to communicate
the brand consistently in all massaging and reinforce its perception as a
strong trustworthy and quality focused company.

76
MTS developed its products to meet the customers‟ needs beyond the
cultural, socio-geographic and income constraints.
MTS studied the current market scenario in Telecom market and
designed its strategies and product development according to the
prevalent conditions in the market.
MTS created its brand awareness among customers by large scale
promotions in forms of advertisements on TV‟s, newspapers and
hoardings across cities.MTS is trying to create a good image in
customers mind as a strong, trustworthy and quality focused
company.MTS broken through the fierce competition in telecom market
as it says “Badlo life ka plan”.
To break through heavy competition in telecom market by launching its
cheap calling plans and affordable internet connection services.MTS is
adopting various effective promotional schemes like Advertising
On TV‟s, News papers and hoardings on Metro stations and highways to
attract Customers attention.

CORPORATIVE STRATEGY

MTS‟ primary goal is to be the leading communication operator in India,

Providing its customers with mobile and high internet access at home and

77
on the move. For this company is trying to move beyond the mobile
access. The development of MTS beyond mobile access is part of our
strategic.

Initiative 3i Company’s direction is basically based on three main

principles:

➢ Integration

➢ Internet

➢ Innovation

Integration:
In integration company is basically trying to develop new pipeline ‟sand
Customer touch points .company aims to provide comprehensive
integrated service portfolio for all of their customers. Communication
needs, through both fixed line and wireless access. The networks and
platforms company is developing will create a seamless and
unsurpassed–user experience.

Internet:
For internet facilities company is trying to offer universal connectivity to
its customers because customer increasingly expects faster and broader

78
Connectivity. Company is trying to create smarter pipelines so the
customers can realize full benefits of today’s technology and to compete
with other brands.

Innovation:
Differentiating MTS from its competitors by offering a unique mix of
products and services, MTS will offer exclusive devices, distinct
packages and services.

Principles and strategy

In order to become a socially responsible business, MTS adopts certain
key principles which aim to advance the stable development of society,
an increase in prosperity and the establishment of a competitive
economy. The expectations of all outside parties that MTS deals with
were taken into account in establishing these principles. They represent a
long-term commitment of MTS to socially responsible business
practices.

Responsible business practices:

MTS works hard to achieve its responsible business practice principles.
MTS plans and executes its business activities in such a way that it has
succeeded in bringing about changes in society, has improved the social
climate. Society.

Responsibilities of a mobile operator:

79
As the largest mobile operator in Russia and the CIS, MTS’ main
responsibility is to provide all users with high quality, innovative and
affordable products and communication infrastructure services.

Equal opportunities:

We make a committed investment to the business of creating equal

opportunities for all. We are committed to providing everyone with the
same access to modern technology, innovative products and services so
that everyone can realize his/her potential. One of the key features of
MTS’activities in this respect is the creation of the same conditions and
opportunities for people living both in remote regions of the country and
in large cities.

Innovation:

We believe that it is possible to achieve our aim of improving the quality

of people’s lives through the universal and wide-ranging introduction of
Innovative technologies, products and services. The spread of innovation
and its use in everyday life engenders an innovative way of thinking,
which in turn stimulates the development of society, encourages
economic growth allows countries and global societies to integrate and
creates the successful society of the future.

Encouraging economic growth and a prosperous society:

MTS’ growth strategy is based on significant investment in the

development of the country’s telecommunication infrastructure. This is
80
essential for key strategic products to be successful on a country-wide
level. As the largest mobile operator in Russia and the CIS, MTS strives
to develop the advanced technological segment of the economy and to
make the country more attractive for investors.
MTS supports government initiatives aimed at improving quality of life,
increasing the prosperity of society and each of its citizens. We cooperate
with the government to realize these initiatives.

Responsibility to the society at large:

All of MTS local activities are based exclusively on the local legislation
in force and the legal norms of the relevant governing bodies, health and
safety standards and labor rights.

Long term investment:

We understand that investment in social development is a long term

investment. This activity not only encourages the development of society
but also creates the conditions for the Company to enjoy stable growth.

Oriented towards results:

One of the key principles of MTS with regard to social policy is its
commitment to achievable and measurable results. As far as our
Company is concerned, this means putting into practice our policy of

81
meaningful social investment. Such investment always has a planned
result and is aimed at solving the most pressing social problems, always
keeping society’s best interests in mind.

Access to information:

We recognize that an essential condition for our social policy to be

realized effectively is to maintain constant dialogue with representatives
of our partners and consumers. MTS is willing and interested in holding
this dialogue. As a public company, we keep society informed about
aspects of our business activities in accordance with the regulations of
the Russian legislation and international standards of public companies.
One basic instrument we can use to keep society informed about our
social activities is annual social responsibility reports. We plan to
introduce this practice and our reports will be published on the
Company’s website for public access. MTS’ policy on social
responsibility is based on a constant analysis of the current business
processes of the Company and the extent to which they conform to our
socially responsible principles. We plan and execute projects over and
above the legally required minimum, and our aim is to increase the
positive influence that MTS can have on society. Our constant aim is to
increase the effectiveness of our social policy. Therefore, we carefully
study the best Russian and global practices in social responsibility and
remain open to cooperation with experts and investment organizations.

82
Products offered by MTS:
MTS has three products in wireless broadband segment:

1. Mblaze Premium
Plug & Play enabled
Speed up to 3.1 MBPS
Fastest upload at a speed up to 1.8 MBPS

2. Mblaze Standard:
Plug & Play enabled
Speed up to 3.1 MBPS
Fastest upload at a speed up to 2.0 MBPS

3. Mbrowse:
Plug & Play enabled
Speed up to 3.1 MBPS
Cutting edge CDMA 1x technology.

83
 7 P’s OF MARKETING

As they are:-

1- Product

2- Price

3- Place

4- Promotion

5- People

6- Process

7- Physical evidence
7P’S OF SERVICE MARKETING

84
Product:

Product of a company includes its finished product readily available in

the market for customers purchases.MTS has launched its various
products in the market like its connection kits, wireless USB Modem i.e.
Mblaze and mobile handsets, MTS is offering these product to provide
services, as per now company has recorded a good response from its
customers and continually coming up with different schemes to attract
more customers. As MTS says that their product is strong as compare to
its competitors but they need some time to grab the audience, as
company has shown strong presence wherever they have started their
operations. Their product is strong because of their low tariffs and
innovative schemes like get unlimited MTS to MTS minutes free for 999
days by just investing 999, and 1000000 minutes free on every new
connection. Company will offer their products and services in future as
well.

Price:

As per the examination done by the MTS before pricing its product, earlier
Company was planning to come up with an idea of 1 paisa a second call
with a slogan of pay for seconds you talk but they rejected this scheme
when they saw a Air cell and other service provider coming with the same
85
the company decided to offer ½ a paisa second call, which no one else is
providing except Tata Docomo, is also having some obligations to get the
calls at ½ a paisa second.Company has also priced its internet data card,
as the MTS is providing two data cards one as they call it standard data
card priced for Rs 1999 and other premium data card priced for Rs2299.
As of now company is not focusing much on its profitability as they want
to build a strong customer base in India as they have built in other
countries, company is sticking with their pricing strategy and not
planning to raise the prices of their products.

Promotion:
Promotion is the life of any company and same for the MTS, company is
trying to grab the market by their promotion of 10, 00,000 minutes free to
new subscribers of MTS and this strategy seems working for them, apart
from this strategy company is planning to sign a celebrity to create an
image in the mind of the target audience, company is also targeting the
road side hoardings and advertisement in television and on radios.

Place:
Place is also a major determinant for a product’s success or failure.MTS is
now setting up in India and targeting the Indian youth by providing low
tariff plans and various internet services. MTS has launch edits various
products in Major metro cities like Delhi, NCR, Kolkata, Mumbai and so
other. Company has also targeted the rural area of the country like Bihar
.Distribution part of MTS comprises of a chain of distribution i.e.
Manufacturer-distributor-retailer-consumer.MTS connections are

86
available in most of telecom retail shops in various major cities like
Delhi and Mumbai.

People:
People refers to the individuals associated with the company and who are
Affected with the decisions of the company. MTS‟s people includes its
Employees, its stakeholders, its loyal customers.MTS is trying to retain
its
talented and skilled employees and motivate them by incentives and
making them comfortable in professional environment.MTS is attracting
new customers by providing luring schemes and low tariffs and seeking
forward to retain them by their excellent services and schemes.

Process:
In case of MTS, the process includes bringing its products i.e.
Connection kits and wireless broadband USB modem in the market for
customers.

Physical evidence:
87
In case of MTS physical evidence includes tangible products that reach
the hands of final customer, i.e. sim cards, modems, cell phones etc.
these products are the first and the most important evidence of
company’s service and commitment to the customers.

Company uses the model:

Manufacturer ►distributor►retailer►consumer
This model is being used by the company to serve its customer. company
is trying to make the functioning of their system as smoth as they can to
deliver best services .

88
 SERVICE GAP MODEL

89
 SERVOQUAL
90
1. Reliability:

A customer expects MTS to provide a product on which he can rely and

when he has any problem with the product, his problem is addressed
properly on time. MTS is seeking to provide quality products and
services to win customer reliability. As company planning to setup a
huge customer care to solve this issue.

2. Assurance:

Customer expects complete assurance from the company regarding

quality of products, effective service and grievance handling.MTS is
assuring quality products and excellent customer care service. But still
company has not managed to provide the desired services by customers,
as their expectation is to get service which offers a clear but the best
service but as per the current data costumers are not satisfied with service
of the company.

3. Tangibles:

Tangibles refer to the products which have a physical appearance which

one can touch and see. A customer rely more on tangibles i.e. products in
hand rather than services which are intangibles. Company is providing
mobile handsets and its high speed internet data card and showing its
physical presence, but the physical presence is not that effective as per
the costumers’ expectation.

91
4. Empathy:

As MTS trying to be more empathetically by understanding the fact that

consumers of today want calls at low prices and company is promising
that they are providing their services at the best possible price. A
customer always expects that the company should understand his
viewpoints and needs and provide him products according to his
needs.MTS is high on empathy because it has designed its products with
keeping customer s needs in mind.

5. Responsiveness:

Company promises that they are 100 % with their responsiveness by

saying the company is offering a 24*7 services, company says they stand
when their costumer wants them to stand for them but the reality is far
from what company says, as their customer service base is not strong in
India because still customers facing a bad connectivity problem and a
bad costumer care problem.

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93
SERVICE TRIANGLE OF MTS

External marketing :

MTS is coming up with variety of schemes to come in relation with its

Costumers, schemes like10, 00,000 minutes free to the new subscribers.
As the company s pricing strategy that to offer law tariffs to create a
customer base because once the customer base will get crated then it will
be easier for them to expand. Their promotional activities say Badlo life
ka plan and use a congestion free network and this is their
communication strategy as well.MTS has done external marketing by
setting a promise to customers for providing quality products and
services and is doing large scale promotions by medium of mass media
like TV s, newspapers, hoardings etc.

Internal marketing:

MTS involves training its employees to meet the benchmarks of the

customer service and is following various motivational techniques to
motivate its employees so that they give their best and provide the
quality service promised to its customers. Company is employing young
and dynamic people within their organization to feed the target audience
and to encourage the participation of their employees company is
offering them very attractive salary packages and incentive schemes.

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Interactive marketing:

Interactive marketing is the moment of truth where things get clear about
what company offers and up to what extent they deliver these services,
with MTS they said they will deliver the best services what they serve in
Russia and in other countries but when we spoke to some of the
costumers of MTS they said services are good they always have the
problem of voice breaking and call disconnection, company replies to
this by saying they are setting up latest technology to overcome these
issue it will take some time and problem will be rectified.

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CONCLUSION

In my report I learn that SSTL is running by the experienced people that

are capable enough to take the competitive advantage in market.
Marketing departments process is good but it is not feasible to make the
Documents in EXCEL. When our MIS is hamper due to technical
problems so it is suggested to company to make another system as a
supportive so we can do our work without in convenience. The Company
can use software’s like SAP(System Analysis and Program
Development).

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RECOMMENDATIONS

➢ MTS should do its product promotion on a very large to make

people aware of MTS existence in Indian Telecom Market.

➢ Company should offer such a strong customer service that when a

customer uses should be able realize the service is going to be the
best, as such there is no such services being provided by the
company.

➢ Company should ask for suggestion from people by various

promotion Strategies, they can do one thing that when people call
to costumer care they should add another feature of press this
button to provide suggestion.

➢ Although company has started its operations in the various rural

sector but not putting more emphasis to those areas ,they should do
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 more promotional strategy in those area because their tariffs are
very low and can play a major role to win customers .

➢ As the product has proven a strong product in the Rajasthan region

they should use this win and should tell the target audience about
their customer base and customer experience.

➢ More live promotions like bringing its costumers into their

promotion that will create a sense of trust amongst the users of the
service.

➢ As the company has no costumer base in India but is a successful

brand in Russia they should also bring this fact in the mind of
people by the way promotion.

➢ They should also categories s their product by serving different

scheme according to the sector, as in India children below 16 and
people above the age of 50 don t call frequently, company can give
them such a different product, by saying product according to the
people .

➢ Company should do its promotion on a large scale to show their

presence in the market as done by Vodafone.

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 ➢ And last but not the least company should always looking for
something different then what is available today, as of now can do
one thing that when people buy recharge coupons they can provide
then double messages free with the talk time, let’s say for example,
if I get a coupon of 25 with talk time of 20 companies can offer
them 40 messages free along with coupon s this is just an advice
from our side .

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 ANNEXURES

&

Questionnaire

Respected madam/sir,
As a part of my project I would like to gather some
information from you which will help me in an in depth study of project.
The information provided by you will be kept confidential and will be
used for academic purpose only. I would be obliged if you co-operate
with me in filling the questionnaire.
1. NAME:

AGE:
Below 20……….
20-30…………...
30-40…………..
Above 40……….

Gender:
Male
Female

2.( a) Are you aware of the MTS Products?

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 Yes □

No □

b) If yes, how do you come to know about this product?

Advertisement □

Friend’s □

Retail shop □

Sales executives’ □

Any other source (Specify)……………

3. Have you used MTS Products?

Yes □

No □

4. If you are a customer of MTS products, how long have you been
buying it?

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Below 6 months □

1.1 year □

1-2 year □

Above 2 year □

5. Do you think the advertisement of MTS Products has a major

influence in your buying decision?

Strongly agree

Agree

Average

Disagree

Strongly disagree

6. Please rate the following factors which influence your purchase

decision.

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(Strongly agree-5, Agree-4, Neutral-3, Disagree-2, and Strongly Disgree-
1)

No Factors Rate

I Price of the product

Ii Quality of the product

Iii Availability of the product

iv. Brand name of the company

v. Previous Experience

vi Advertisements

vii Family/friends opinion

viii Sales promotional activities

7. Please rate your satisfactory level of MTS Products based on the

following features. (Highly satisfied-5, Satisfied- 4, Normal-3,Poor-
2,Very poor-

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 NO Factors Rate

1 Price

2 High quality

3 Brand name

4 Availability of the products

5 Specialty of the product

8 Rank the following factors based on your experience on MTS

product.

1. Good quality

2. Affordable price

3. Timely availability

4. Easy applicability

5. Reliability

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 9. HOW satisfied are you with MTS product compared with others in
the market?

1. Highly satisfied ( )

2. Satisfied ( )

3. Neutral ( )

4. Dissatisfied ( )

5. Highly dissatisfied ( )

10 Has your friend /relative opinion influenced you to buy MTS

products

1. Strongly agree

2. Agree

3. Average

4. Disagree

5. Strongly disagree

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BIBLIOGRAPHY

Websites:

www.mtsindia.in
www.mtsgsm.com
http://www.sistema.com/businesses/telecom/shyam
http://www.itvarnews.net/news/9660/MTS.html
www.isourceupdates.com

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 • Others:

Annual Report

Interview of Respondents

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