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Customer retention model for Postpaid.

CHAPTER - 1

GENERAL INTRODUCTION
A large population, have low telephony penetration levels and rise in consumers income and spending owing to strong economic growth have contributed to making Indi the fastest growing telecom market in the world. In the beginning, two way radios (known as mobile rigs) were used in vehicles such as tanicabs, police cruisers, ambulances, and the like, but were not mobile phones because they were not normally connected to the telephone network. Users could not dial phone numbers from their mobile radios in their vehicles. A large community of mobile radio users, known as the mobile radios in their vehicles. A large community of mobile radio users, known as the mobilizes, popularized the technology that would eventually give way to the mobile phone. Today communication has been modernized from the telegraphic communication into pocket sized mobile communication plays very crucial role to connect the people from different places within seconds at any time at any place in the world. In this 21st century, without communication no activities can be done. For eg.: Business people are taking any marketing decisions through mobile communication. It helps not only in the business, it covers all the other activities, which take place. So no person cannot live without communication in the present competitive era.
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Idea cellular is a publicity listed company having listed on the BSE (Bangalore Stock Exchange) and the NSE Stock Exchange) in Mumbai. Idea cellular is a leading GSM Mobile service operator with Pan India Licenses, with a customer base of 47 million in 17 states are operations are soon expected to start in Kokata and west Bengal, Nort East and Assam and Jammu and Kashmir. A frontrunner in introducing revolutionary tariff plans, IDEA cellular has the distinction of offering the most customers friends and competitor prepaid offering for the first time in India, in an increasingly segmented market. From basic voice and short message service (SMS) services to high end value added services such as mobile TV generation and IDEA is seen as an innovative customer founded brand. IDEA Wowen Card cellers to the special needs of women on the move and youth card covered the emerging youth segment. IDEA MY GANG. The widely popular bagged the prestigioius Golden Peacock Award 2008 under the most innovative product category at the 19th world congress on Total quality. A brand known for many first, IDEA was the first to launch the GPRS & EDGE in India. IDEA has partnered with Research inmotion (RIM) to offer Black Berry service on its network. IDEA net setter plug and play, EDGE enabled USB data card offered affordable data connectivity with faster speed and consistency.
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(National

Customer retention model for Postpaid.

IDEA offers seamless coverage to roaming centomon travelling to any part of the country, as well as traditional travelling customers across over 200 countries. IDEA cellular has partnership over 400 operates worldwide to ensure that customers are always connected while on the move across the globe. IDEA part of the Aditya Birla Group. Indias first truly multinational corporation. The group operation in 25 countries and in anchored by over 1,25,000 employees belonging to 25 nationalities. The group has been adjudged The Best employer in India and among the top 20 in Asia by the Hewitt-Economic Times & wall street journal study 2007.

History
Incorporated as Birla Communications Limited in 1995 obtained licenses for providing GMS based serviced in Gujarath and Maharashtra circles following the original GSM license bidding process. In 1996 changed name to Birla AT & T communication limited following joint venture between Grasim Industries and AT & T corporation. In 2000 merged with Tata Cellular limited, thereby acquiring original license for the Andhra Pradesh circle.

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Customer retention model for Postpaid. In

2004

changed

the

name

as

Idea

Mobile

communications Limited., In 2006 become part of the Aditya Birla Group subsequent to the TATA Group transferring its entire shareholders in the company to the Aditya Birla Group. Acquired Escorts Telecommunications Limited.

In 2007 Merger of seven subsidiaries with Idea Cellular Lilmited. In 2008 Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu and Chennai, West Bengal, Orissa, Kolkata, Assam, North East and Jammu and Kashmir. Acquired spice communication with the operating circles of Punjab and Karnataka.

In 2009 Idea launches services in Tamil Nadu, Idea expanded services in Orissa.

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Our service Area


The Indian

telecommunications

market

for

mobile

services is divided into 22 service areas classified into metro category A, category B and category C service areas by the Government of India. These classification are based principally on a service areas revenue generating potential. Our 17 operational service area are broken up into established and new service area. The Idea have already 40,016,153 customers are there. Considering the facts that service quality is vital for business success and consumer is occupying the centre stage in the business, service provider should consider the success factors of their business. At the end of the day human element occupies the centre stage in service sector and other supporting activities like technical skills etc. provides sufficient strength to carry on the business. Indian Telecom sector, like any other industrial sector in the country, has gone through many phases of growth and diversification. Starting from telegraphic and telephonic system in the 19th century, the field of telephonic communication has now expanded to make use of advanced technologies like GSM, CDMA and WLL to the great 3G technology in mobile phones. Day to day both the public players and the private players are putting in their resources and effects to improve the telecommunication technology so as to give the maximum to their customers.
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So the customers find difficulty to evaluate the quality of service offered by various services providers and select the best one. Customer derives greater satisfaction from a service when they play a bigger role in creating and providing the service. Customer knowledge about the service also determines his expectations of service.

Chapter 2

RESEARCH METHODOLOGY
Title of the Study:
A study on Service reliability of IDEA company with regard to Tumkur district.

Statement of the problem


This particular topic is service reliability of IDEA services and to know more about the post paid and prepaid services provided by the Idea because of introduction of many network services the competition is very high. This study also helps to understand the competition between other services and also to analyze the services of Idea. The company has to conduct services or get feedback to update the service reliability to be better than their competitors. So this project based on the respondents survey to analyze the extent of service reliability and the essentials to

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Customer retention model for Postpaid. be done in future to increase demands will be highly fruitful for the company betterment. Hence, this study aims at analyzing the service

reliability of Idea company in Tumkur city.

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Objectives of the study


1. To know the respondents opinion about Idea services. 2. To find out the factors influencing the purchase decisions. 3. To study the service reliability of Idea services. 4. To know about the customer satisfaction level regarding Idea services. 5. To find out the opinion about network coverage of Idea services. 6. To study about the additional facilities provided by them. 7. To study the various schemes offered by Idea services. 8. To study the price charged by the Idea services 9. To identify the best media for advertisement. 10.To study the reason behind using the Idea service. 11.To find out the solutions to problems. 12.To know the respondents opinion about quality of service provided by Idea company. 13.To know the customer opinion about additional benefits needed to implement. 14.To know the customer loyally towards Idea company. 15.To find out which type of promotional activities are needed to improve their sales and profits. 16.To find out respondents awareness about policies and various offers.
17. To find out the factors which are extremely influential for

customer during the purchase of Idea services. 18.To find out the market share of the Idea services.

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Scope of the study


This study helps the company to know about its competitors. It will also help to know the customer attitude and response. The study of market of Idea services has been carried out in Tumkur city. The study is conducted to carry out necessary information. It helps to know the company to know the factors influencing the customers for accepting and rejecting the service. It helps in selecting the best promotional activity to improve the sales. It will also helps in knowing the level of customer satisfaction and it also helps the company to improve and add new features in service for customer acceptance. This study also helps to extend this service line so as to capture market share and face the tough competition. This study also helps in concentrate more on better services in order to attract and satisfy the prospective customers. It helps the company to read its customers in better way and to develop service reliability accordingly. At last, it can be taken as a basis for any future customer service related research studies.

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Limitations of the study


This study was conducted only in Tumkur city. So that the company cannot take major decision by taking only this particular region of survey. The sample size as confined to 100 respondents due to lack of time. The method selected is complex and time consuming. The tastes and preferences of the customers for

accepting a service may change over a period of time.

Research design
A research design is purely a master plan or model for the conduct of investigation. It is specification of procedure for collecting and analyzing the information required for the solution of some specific problem. Market research design can be classified on the basis of the fundamental objectives of the research

Research design

Explanatory

Descriptive Casual

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Customer retention model for Postpaid.

Research design adopted for the study


Descriptive research design is adopted under which case method is felt to be more formalized. So that the point to be investigated is known correctly. The interview is targeted to a small group of selected individuals form the chosen areas of the city. The outcomes of the study are: It is possible to identify the real event or the situation Inference are drawn studying the entire situation Due to close interaction between the customers it is possible to collect more accurate information.

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Research Method
Primary data can be collected in 5 ways for the study of the problem.

Research method

Observation Consumer Panel

Test Marketing Experimental

Personal Interview Telephone Mail Personal interview techniques are used backed up by structured questionnaire, a famous research tool for the study.

Research instrument
A structured questionnaire of both open and closed end is felt necessary for the research problem.

Data collection or sources of data


When once a research design is planned and finalized them of collecting both primary and secondary data has to be produced keeping in view the research problem.

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Customer retention model for Postpaid. Primary data can be collected through number of method such as survey and observation method. The primary data is collected structured questionnaire form the customers.

Internal sources
Informal business records, accounting records, sales force records, miscellaneous records.

External sources
Survey reports, business magazines, trade journals, report of some specific projects, internet.

Sampling design
Sampling design is the basic unit containing the elements of population to be sampled. In this project, the respondents are chosen from the customers of Tumkur city.

Sampling size
How many people should be surveyed? The size of the sample has direct relationship with the degree of accuracy desired in the investigation. A sample size of 100 respondents was chosen on a random basis.

Methodology
The methodology reveals its meaning, the purpose and the way of collection of information from various sources.

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Primary data
A structured questionnaire was used to collect primary data (a copy of which is attached to the appendix). In structured questionnaire the various questions are typed on a form, in a nature containing yes, no answers, rating and open ended questions. Questions and multiple choice questions were carried out to the respondents in the questionnaire. The use of structured questionnaire was to limit the time of the respondents and to eliminate bias from the answers to the great extent possible.

Secondary data
Secondary data were collected through research of brochure magazines and website.

Plan of Analysis
The study is divided into several parts: 1. First part deals with general introduction of the product. 2. Second part deals with research methodology, which consists of statement of the problem, objectives, scope, limitations and research design.
3. Third part deals with theoretical background consists of

introduction of marketing and brief explanation about service reliability.


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Customer retention model for Postpaid. 4. Fourth part deal with company profit which includes history, growth, business summary, etc.
5. Fifth part deals with product

profile, which includes

services of Idea company. 6. The data collected were analyzed and interpreted by using statistical tools like charts, tables, graphs and diagrams in the sixth part. 7. Seventh part deals with summary of survey findings. 8. Eight part deals with suggestions 9. Ninth part deals with conclusion.

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Chapter 3

THEORETICAL BACKGROUND Theoretical perspective


Introduction of Market
As the 21st century is fast growing marketing is becoming more and more attractive for the company at state, national and international levels. With the development of new markets and technology of selling a whole variety of consumer product has been designed and developed. Todays market is much Smarter and price sensitive than before, considering its consumer with more disposable income in his hands, he is empowered with more choice and purchasing power. The consumer is the king and queen in the market with his changing tastes and preferences from time to time. The consumer tries to satisfy his wants from different market sources. Hence, to know likes and dislikes of consumers towards the products, marketer should go for market research and conducting a consumer survey to know about the customer behavior.

Market
Market is a place where buyer and seller interact together for purchase and sales of goods and services. According to
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Customer retention model for Postpaid. Philip Kotler, A Market is an area for potential exchanges. A market is an aggregate demand the potential buyers for a products/service. A market consists of the forces of supply (sellers) and demand (buyers) facilitating an exchange process between sellers and buyers. Exchange commerce or marketing. is the heart of

Market

Body of sellers

Market the circle of Exchange

Body of buyers

Feedback information satisfaction

According to Philip Kotler and Gary Armstrong, Marketing is the business function that identifies customers needs and wants, determines which target markets the organization can serve beset and design appropriate products, services and programs to serve these markets.

Core concepts of Marketing

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Customer retention model for Postpaid. Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, exchanging and transacting products of value with others. This definition of marketing rests on the following core concepts, needs, wants relationships and demands: network; products (goods, and services and ideas); value and satisfaction exchange and transactions; prospects. and marketers

These concepts are illustrated below:


Needs, Wants & demands Products, goods; services & ideas Value, cost and satisfactio n Exchange and transactio

Marketers & Prospector

Markets

Relationshi p and network

Marketing management
Marketing management represents marketing concepts in action i.e., preplanned demand management under customer oriented marketing philosophy. Marketing management may be defined as, The process of management of marketing programming for accomplishing
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Customer retention model for Postpaid. organizational goals and objectives. Marketing management involves planning, implementations and control of marketing programs or campaign.

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Marketing research
Marketing research is the systematic gathering, recording and analyzing of idea about problems connected with market place that is problems related to product, price, promotion and distribution of the 4Ps of the marketing mix. Marketing research is said to be moving away from simple surveys to action oriented, decision oriented, problem solving research. Reflecting this change in orientation, marketing research may be defined as the scientific and controlled process of gathering of non-routine marketing information helping management to solve marketing problems. Marketing is concerned with all those factors, which have a direct impact upon the marketing of products and services.

Marketing research covers


Market and policies, research, sales research, product the research, dealers advertising and promotion research, research on sales methods distribution research including research. It also concentrates on the study of product planning and development, pricing policies effectiveness of personal selling, advertisement and sales promotion, distribution structure, marketing strategies, market competition, etc.
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Customer retention model for Postpaid.

Marketing research is directly interested in offering sound alternative solutions, to all marketing problems relating to exchange of goods and services from producer to consumers. Beginning and end of marketing is marketing research.

Surveys
A survey consists of gathering data by interviewing a limited number of people (a sample) selected form a larger group. A survey has the advantage of getting to the original source of information. In this method, the researcher obtains information from the respondents by interviewing them. This is the most common method of getting primary data. This method is more effective than the experimental and observation approach. The survey can be conducted in two ways: Sampling survey and census survey under census survey, the marketer conducts survey covering the entire market. The data are collected from each and every person in the market. But under sampling survey, only a part of the whole group will be studied. We may study a sample drawn from the large group and if the sample is adequately representative of the group, we should be able to arrive at valid conclusions.

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Customer retention model for Postpaid. As such, sampling survey is widely accepted. Data collection under the survey method is of three types. 1. Personal interview 2. Mail questionnaire 3. Telephone interview

Product
A product is any tangible, intangible offering that might satisfy the needs or aspirations of a consumer. According to Philip Kotler, A product is anything that can be offered to a market for attention, acquisition, a use or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organization and ideas.

Features of a product
1. Tangibility 2. Intangible attributes 3. Associated attributes 4. Exchange value 5. Consumer satisfaction

Product mix
A product mix is the set of all product lines and items that a particular seller offers for sale to buyers. It has four main characteristics. 1. Length 2. Width
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Customer retention model for Postpaid. 3. Depth 4. Consistence

Customer
The customer is the focal point of the marketing mix. He is not dependent on the seller in reality and not an interruption of sellers work. A customer does the seller a favor when he meets the salesman. The salesman is not doing him a favor by serving him. Let the salesman remember three things. 1. A customer is the most important asset a marketer/seller can have. 2. A customer is the hardest thing to get. 3. A customer is the easiest thing to lose.

Consumer preference
It is priorities given by the customers towards particular product or towards brand and other related product aspects. Here consumer preference depends on the advantages of particular product over other product or brand.

Factors affecting consumer preference


Consumer purchases are influenced by cultural, social and psychological characteristics or factors they are as follows: cultural factors; culture, sub culture, social class, social factors; group, family, roles and status, age and life cycle, occupation, life style.

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Marketing philosophies for services


There are four known philosophies of marketing which have at same time or the other been held by the managers of commercial organizations. Ion case of devices are:

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a. The production concept


It is assumed that customer will buy the services offered by various services firms, provided they are accessible and affordable. Accordingly service providers must develop services which they consider useful and at affordable prices, then they will easily sell.

b. The product concept


Customers will buy these services that offer the best quality and value for money. Thus according to this approach the serviced providers must direct their efforts at improving their quality of service and by doing so, customers will try them.

c.The selling concept


This concept assumes that customers will not buy the firms services unless a positive efforts is made by the firm to sell them. Accordingly, this concept implies the need not only for advertising and other sale promotion activities, but also aggressive selling or active persuasive selling of services by the marketing staff.

d. The marketing concept


According to this concept to ensure the long term commercial success the service firms have to find out the needs and wants of target markets and to adopt their organization as well as services to satisfy those needs
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Customer retention model for Postpaid. and wants more effectively and efficiently than

competitors.

Service quality
It is difficult for customers to evaluate services as compared to conventional products. It is because of this reason that service providing firm give a lot of thought to the physical environment in which the service is delivered they try to build up a service image with tangible features. Many such tangible service features are included in the advertising and promotional literature. Service quality means focusing on satisfying customers need and in that sense it is not much different from product quality which also focuses on satisfying customer needs. However, service will be intangible and can be experienced by the customer only. Parasuraman, Zenithal and Berry developed a research instrument called SERVQUAL to measure customer satisfaction with different aspects of service quality. Accordingly there are five specific dimensions of service quality. They are: Tangibles

Empathy

Reliability

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Assurance

Responsiveness

5 Stars of Quality Responsiveness


Responsiveness is willingness to help customer and provide prompt service. The focus under this quality determinant is our attentiveness and promptness in dealing with the customer queries i.e., requests, problems, complaints and questions of the customer.

Assurance
Assurance relates to knowledge and accuracy of employees and their ability to convey trust and confidence. This inspires trust and confidence. This dimension is of great significance for service where a customer perceives high risk include legal services medical services, brokerage and stock services.

Empathy
Empathy is the ability to provide caring individualized attentions the firm provides its customers. Empathy means treating the customers as indirect i.e., it calls for customized services. For organization each customer is unique and they provide personalize service to their customer.

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Tangibles
Tangibles are appearance of physical facilities, equipment, personnel and communication materials. The customer evaluate the quality of services as above tangible features. The service organization try to enhance their image, provide continuity and through tangibles signal quality to customers.

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Reliability
In marketing research, reliability is the accuracy with which data portrays reality, particularly when a sample group is studied in order to make generalization about a total population. Reliability is the ability of the entity to perform its assigned task predictably and without fail at all times. Fujitsus quality of service management as delivered through its quality of service. Appliance is designed for conforms to the highest possible reliability standards. In the world of service level management there are four areas that require a reliability strategy. 1. The network and system operation. 2. New equipment introduction (for possible compromise of existing network and system integrity). 3. The new equipment itself. 4. The service status and warranty commitments of new equipment suppliers. Service reliability includes three important factors:
1. Accessibility 2. Continuity -

Service is available when desired

customers has uninterrupted service over meets the customer expectations

desired duration
3. Performance

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Characteristics of Telecom Industry


Entry and Exit barriers
Telecom industry is characterized by high entry and exit barriers. Service provides need to invest huge capital to built or hire the necessary infrastructure for providing services to customers. Eg: Tata tele services in India invested an amount of Rs. 7533 crore for setting up the required infrastructure because of the high cost of capital involved in most countries the government owned telecom service organization enjoys monopoly. Thus the telecom industry is heavily regulated by the government. Even in an open industry where the private players are allowed to operate if a player finds it difficult to compete and wants to quit the industry, finding a right buyer is a formidable task. The buyer should be willing to pay the huge amount enter the market and face the challenges.

Competition
The intangible inseperable and heterogeneous nature of telecom service poses difficulty to new players in attracting potential customers. It also makes it difficult for the existing players attempt to convince customers by offering various supplementary services using advanced technology.

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Market segmentation
It is the basic step for any service to be served and the marketing strategy required to serve it. Therefore, let us start with an understanding of market segmentation of the telecom industry in India. The market for telecom industry can be divided into following segments based on the consumer.

Individual
The customers most or important households. segment Because is of that the of individual of monopoly

government owned tele-communication sector in India. People earlier paid very high prices for communication services. After the basic telephone services were opened for private players in 1994, many players entered the market and the prices came down owing to competition. Te number of individual users increased significantly as the reach improved and service efficiency increased.

Corporate
Corporate communication includes the communication of information between two units in two different locations of a city, of country or in two different countries. Business communication can take any form, telephonic conversation letter, email, fan, etc. it is important that the message be conveyed clear and fast, without any distortions for the business to function effectively and efficiently.
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Rural
During the monopoly of the government owned service providers, the worstly affected customer was the rural customer. The reach was so bad and the quality of service provided was even worse. The telecom revolution of the late 80s and early 90s saw a change in the rural areas and provide basic telephone services at subsidized prices, the reach of telecom services to remote areas has improved. The efficiency of the services has also improved.

Urban
In urban areas, the number of telephone subscribers is significantly higher than rural areas. This is because of not only the available infrastructure but also the presence of educated masses, which are comfortable using technology and therefore use it more frequently. Infact, urban India has grown to become dependent on telecom services. This is one of the reasons why most cellular service providers start their business in the cities first and then proceed to capture the rural areas.

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Chapter 4

INDUSTRY PROFILE
Mobile Phones - A History
Introduction Digital wireless and cellular roots go back to the 1940s when commercial mobile telephony began. Compared with the furious pace of development today, it may seem odd that mobile wireless hasn't progressed further in the last 60 years. Where are our video watch phones? There were many reasons for this delay but the most important ones were technology, cautiousness, and federal regulation. As the loading coil and vacuum tube made possible the early telephone network, the wireless revolution began only after low cost microprocessors and digital switching became available. The Bell System, producers of the finest landline telephone system in the world, moved hesitatingly and at times with disinterest toward wireless. Anything AT&T produced had to work reliably with the rest of their network and it had to make economic sense, something not possible for them with the few customers permitted by the limited frequencies available at the time. Frequency availability was in turn controlled by the Federal Communications Commission, whose regulations and
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Customer retention model for Postpaid. unresponsiveness constituted the most significant factors hindering radio-telephone development, especially with cellular radio, delaying that technology in America by perhaps 10 years. In Europe and Japan, though, where governments could regulate their state run telephone companies less, mobile wireless came no sooner, and in most cases later than the United States. Japanese manufacturers, although not first with a working cellular radio, did equip some of the first car mounted mobile phone services, their technology equal to whatever America was producing. Their products enabled several first commercial cellular telephone systems, starting in Bahrain, Tokyo, Osaka, Mexico City. Wireless and Radio Defined Communicating wirelessly does not require radio. Everyone's noticed how appliances like power saws cause havoc to A.M. radio reception. By turning a saw on and off you can communicate wirelessly over short distances using Morse code, with the radio as a receiver. But causing electrical interference does not constitute a radio transmission. Inductive and conductive schemes, which we will look at shortly, also communicate wirelessly but are limited in range, often difficult to implement, and do not fulfill the need to reliably and predictably communicate over long distances. So let's see what radio is and then go over what it is not.

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Customer retention model for Postpaid. Weik defines radio as: "1. A method of communicating over a distance by modulating electromagnetic waves by means of an intelligence bearingsignal and radiating these modulated waves by means of transmitter and a receiver. 2. A device or pertaining to a device, that transmits or receives electromagnetic waves in the frequency bands that are between 10kHz and 3000 GHz." Interestingly, the United States Federal Communications

Commission does not define radio but the U.S. General Services Administration defines the term simply: 1. Telecommunication by modulation and radiation of

electromagnetic waves. 2. A transmitter, receiver, or transceiver used for

communication via electromagnetic waves. 3. A general term applied to the use of radio waves. Radio thus requires a modulated signal within the radio spectrum, using a transmitter and a receiver. Modulation is a two part process, a current called the carrier, and a signal bearing information. We generate a continuous, high frequency carrier wave, and then we modulate or vary that current with the signal we wish to send. Notice how a voice signal varies the carrier wave below:

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This technique to modulate the carrier is called amplitude modulation. Amplitude means strength. A.M. means a carrier wave is modulated in proportion to the strength of a signal. The carrier rises and falls instantaneously with each high and low of the conversation. The voice current, in other words, produces an immediate and equivalent change in the carrier. For voice this is exactly the same way a telephone works, using the essential principle of variable resistance. A voice in telephony modulates the current of a telephone line. Compared to a telephone line, the unmodulated carrier in radio is simply the steady and continuous current the transmitter generates. When you talk the radio puts, superimposes, or impresses your conversation's signal on the current the radio is transmitting. Conversation causes the current's resistance to go up and down, that is, your voice varies or modulates the carrier. I illustrate this idea with the diagram below. The only difference between a telephone and radio is that we call the transmitter a microphone. Now that we've quickly looked at radio, let's go on to its early development.

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History of CELLULAR TELEPHONY IN INDIA


Cellular 1992 -Telecommunication sector in India liberalized to bridge the gap through government spending & to provide additional resources for the nations telecom target. Private sector allowed participating 1993 - The telecom industry gets an annual foreign investment Rs 20.6 million 1994 - License for providing cellular mobile services granted by the government of India for the Metropolitan cites of Delhi, Mumbai, Kolkata & Chennai. Cellular mobile service to be duopoly (i.e. not more than two cellular mobile operators could be licensed in each telecom circle), under a fixed license fee regime for 10 years. 1995 -19 more telecom circles get mobile licenses 1995(August) - Kolkata became the first metro to have a cellular network 1997 - Telecom Regulatory Authority of India is set up 1998 - Annual foreign investment in telecom stands at Rs 17,756.4 million. 1999 - FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7 million 1999 - Tariff rebalancing exercise gets initiated 1999(March) - National Telecom Policy is announced. 2000(June) - FDI inflow drops further down to Rs 918 million coming 2000 (January) - Amendment of TRAI Act.
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Telephone system in India


India's telephone system, like many other aspects of telecommunications, is in the government sector, under the control of the Ministry of Information and Broadcasting. The modernization of the telephone system in India has been underway since 1986 when Mahanagar Telephone Nigam, a government corporation, was established to operate systems in Bombay and New Delhi, and Videsh Sanchar Nigam, also government owned, was set up as the overseas carrier. Progress was slow, however; the rest of the nation's service continued as a civil-service-run operation under the Department of Telecommunications until 1994 when basic telephone services were opened to private-sector competition.

Service providers in India


Recently only the PSUs BSNL and MTNL were allowed to provide basic phone service through copper wires in India. MTNL is operating in Delhi and Mumbai only and all other parts are covered by BSNL. The boost in India telecom market has also given rise to illegal setups and practices. Following the directives issued by the minister of communication and IT, Government of India, the department of telecom has setup vigilance telecom monitoring cells at Delhi, Mumbai, Chennai, Hyderabad and other important locations to vigorously defect the illegal telecom setups in the country. VTM

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Customer retention model for Postpaid. cells continuously monitor the operators to check the grey market cells.

Chapter 5

COMPANY PROFILE IDEA


Type Founded Head quarters Key people CEO Kumar Mangalam, Chairman Rajesh Birla, Chairperson Industry Products Telecom Revenue Net income million (2009)
Idea is a mobile network operator with its headquarters in Mumbai. It is the largest mobile tele communications network
Dept. of MBA, PESSE. 2011 2012 Page 41

Public

1995 Mumbai M.R. Prasanna,

Mobile telecommunications Mobile networks, services, etc. 1946.5 million (2009) 103344.41

Customer retention model for Postpaid. company in the world by turnover and has a market value of about 75 billion (2008). As Indias leading GSM mobile services operator, IDEA cellular has licenses to operate in 11 circles. With a customer base of over 17 millikon. IDEA cellular has operations in Delhi, Maharashtra, Goa, Gujarat, Andra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranjchal, Haryana, UP-West, Himachal Pradesh and Kerala. IDEA cellulars footprint currently covers approximately 45% of Indias population and over 50% of the potential telecom market. As a leader in value added services, Innovation is central to IDEAs VAS factory. It is the first cellular company to launch music messaging with cellular jockey, background tones, group talk, a voice portal with Say IDEA and a complete suit of mobile email services. A front runner on introducing revolutionary tariff plans, IDEA cellular has the distinction of offering the most customer friendly and competitive prepaid offerings, for the first time in India, with super power 2 minutes outgoing free, lifelong offer and other segmented offerings like womens card. life time Ideas is the first and only loyalty program, for the prepaid customer, introduced by a cellular brand.

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Customer retention model for Postpaid. The latest feature in the IDEA cap is the GSM association award for Bill Flash. It has recently won making it the first cellular operator in India to win an award on this platform. Idea cellular is part of Aditya Birla Group, which is Indias first truly multinational corporation global in vision, rooted in Indian values, the group is driven by a performance ethic pegged on value creation for its multiple stakeholders.

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Customer retention model for Postpaid.

Awards & rewards of the company


1. Buzziest Brand in India 2009

Idea voted 4th Biggest brand in India by afags.


2. Golden Peacock -

2008, Most innovative product and

service. 3. Asian Mobile News Awards 2008 and 2007, Mobile Operators of Year in India. 4. GSM Association Award Best Billing customer care solution 2006-07 5. Bill Flash service at GSM association awards in

Barcelona, Spain 2005 6. Won the award for the CARE services in the Best Billing customer care solution at the GSM Association Award in Barcelona.

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Customer retention model for Postpaid.

ORGANIZATION STRUCTURE
4BranchManager executives 2 customerboys Marketing care Sales Manager Shop Manager Area 2 Office head Cluster Executives

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Mission & Vision statement


Vision Statement
It goes without saying that the brand vision of Idea mirrors the companys vision

Mission statement
We will delight our customers while meeting their individual communication needs anytime anywhere We survive because of our customers.

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Customer retention model for Postpaid.

PRODUCT PROFILE
Idea cellular, a pan-Indea mobile operator has launched breakthrough tariff plans to enable its subscribers to call at affordable rates anywhere in the country. Idea has launched two tariff plans offering all local calls at 40 paise per minute. STD at 60 paise per minute and another plan offering all local and STD calls at just 1 paise per second. This initiative by IDEA cellular is set to user in a new era of mobile phone billing, besides offering lowest call tariffs in Karnataka. The Super Saral plan, new IDEA prepaid subscribers can do their first recharge with either purchase for Rs. 44 or Rs. 94 tariff voucer. The two vouchers come with a tariff validity of one year. IDEAs per second tariff plan will offer all local and STD calls on any network in India, at the lowest tariff of 1 paisa per second. New IDEA subscribers can avail the per second plan by purchasing super seconds voucher for Rs. 47,97 & Rs.196. this would include talktime and free promotional local SMSs and comes with a tariff validity of 1 year.

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Customer retention model for Postpaid.

Chapter 6

DATA ANALYSIS AND INTERPRETATION


Table No. 1: Table showing respondents using Idea services
Sl.n o. 1 2 Factor No. s Yes No Total of % of

respondents 100 0 100

respondents 100% 0% 100%

Interpretation
From the above it is clear that 100% of the respondents are using Idea services and from the above analysis it can be analyzed that the youngsters are more attracted towards Idea prepaid services of Idea in Tumkur city.

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Customer retention model for Postpaid.

Graph No. 1: Table showing respondents using Idea services

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Customer retention model for Postpaid.

Table

NO.2

Table

showing

respondents

knowledge of the Idea different sources


Sl.n o. 1 2 3 4 5 6 Factors No. Dealer Friends Relative s Media Colleagu es Others Total

service through
of % of

respondents 6 48 4 36 1 5 100

respondents 6% 48% 4% 36% 1% 5% 100%

Interpretation
The sources such as dealers, friends, relatives, media, colleagues and others play an important role in promoting the particular service. From the above table, it is clear that 48% of respondents know about IDEA through friends, 36% of them are known by Media, 6% of them are known are dealer, 5% of them are known by others and 1% of them known by colleagues.

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Customer retention model for Postpaid.

Graph

NO.2

Table

showing

respondents

knowledge of the Idea different sources

service through

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Customer retention model for Postpaid.

Table No. 3: Table showing respondents opinion about IDEA


Sl.n o. 1 2 3 4 Factor s Excelle nt Good Better Poor Total

services
No. of respondents 14 65 21 0 100 % of respondents 14% 65% 21% 0% 100%

Interpretation
To attract customers the company should try to provide the best services by fulfilling the expectation of the customers and also provide additional facilities. From the above table it is clear that 65% of respondents feel good about IDEA services, 21% of them feel better, 14% of them feel Excellent, 0% of them feel poor.

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Graph No. 3: Table showing respondents opinion about IDEA services

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Table No. 4: Table showing respondents opinion on


Sl.n o. 1 2 Factor s Post paid Prepaid Total No.

payment Preference
of % of respondents 13 87 100 respondents 13% 87% 100%

Interpretation
Customers preference is priorities given by the customers towards particular service at the time of purchase. From the above table it is clear that 13% of the respondents prefer to purchase post paid and 87% of them prefer to purchase prepaid.

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Graph No. 4: Table showing respondents opinion on Preference payment

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Table NO. 5: Table showing respondents opinion about pricing of


Sl.n o. 1 2 3 4 Factors Cheaper Value for money Too high price Expensive Total No.

IDEA sim card


of % of respondents 45 55 0 0 100 respondents 45% 55% 0% 0% 100%

Interpretation
Price is the main factor which affects the sale or market. Therefore, a sound pricing policy and transports rates of calls must be adopted to have maximum sales revenue. From the above table it is clear that 45% of the respondents feel cheaper about pricing of IDEA sim card, 55% of them feel value for money.

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Graph NO. 5: Table showing respondents opinion about pricing of IDEA sim card

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Table No. 6: Table showing respondents opinion about pricing of


Sl.n o. 1 2 3 4 Factors Cheaper Value for money Too high price Expensive Total

IDEA Life Time Validity


No. of % of respondents 25 50 20 5 100 respondents 25% 50% 20% 5% 100%

Interpretation
Price is the main factor which affects the sales or market. Therefore, a sound pricing policy and transports rates of calls must be adopted to have maximum sales revenue. From the above table it is clear that 50% of respondents feel value for money, 25% of respondents feel cheaper, 20% of respondents feel too high price and 5% of respondents feel expensive.

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Graph No. 6: Table showing respondents opinion about pricing of IDEA Life Time Validity

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Customer retention model for Postpaid.

Table

No.

7:

Table

showing

respondents

awareness about chota by IDEA service


Sl.n o. 1 2 Factor s Yes No Total No.

recharge offered
of % of

respondents 78 22 100

respondents 78% 22% 100%

Interpretation
Customers awareness towards its various services indicates the efficiency of companies promotional strategy. From the above table it is clear that 78% of the respondents have awareness about chota recharge offered by IDEA and 22% have not aware about chota recharge offered.

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Graph

No.

7:

Table

showing

respondents

awareness about chota offered by IDEA service

recharge

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Customer retention model for Postpaid.

Table No. 8: Table showing respondents opinion about customer


Sl.n o. 1 2 3 4 Factors No. Excellen t Good Better Poor Total

care service
of % of

respondents 16 54 21 9 100

respondents 16% 54% 21% 9% 100%

Interpretation
From the above table it is clear that 16% of the respondents said excellent about customer care service, 54% of them feel good, 21% of them feel better and 9% of them feel poor.

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Graph No. 8: Table showing respondents opinion about customer care service

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Table No. 9: Table showing respondents opinion about the buying


Sl.no. 1 2 3 4 5 Factors Price Brand image Best service Customer service Good network coverage Total No.

decision
of % of

respondents 15 25 19 1 40 100

respondents 15% 25% 19% 1% 40% 100%

Interpretation
The behavior of one consumer towards a particular product differs from another consumer. This is because of the factors that they consider before purchase differs, few consumers give importance for price, brand image, some others for network coverage. From the above table it is clear that 40% of the respondents prefer good network coverage while purchasing 25% of them consider because of Brand image, 19% of them consider of best service, 15% of them consider because of price and 1% of them consider because of customer service.

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Customer retention model for Postpaid.

Graph No. 9: Table showing respondents opinion about the buying decision

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Customer retention model for Postpaid.

Table

No.

10:

Table

showing

respondents

experience about sudden disconnection


Sl.n o. 1 2 Factor No. s Yes No Total

disturbance Like

of %

of

respondents 53 47 100

respondents 53% 47% 100%

Interpretation
From the above table, it is clear that 53% of the respondents say Yes about the experience like sudden disconnection, 47% of them said No.

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Customer retention model for Postpaid.

Graph

No.

10:

Table

showing

respondents about Like sudden

experience disturbance disconnection

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Customer retention model for Postpaid.

Table

No.

11:

Table

showing to

respondents attend the

opinion about time take Complaints


Sl.n o. 1 2 3 4 Factors Few minutes Few hours One day More than 2 days Total No.

of %

of

respondents 44 33 22 1 100

respondents 44% 33% 22% 1% 100%

Interpretation
From the above table it is clear that 44% of respondents said that the time taken to attend the complaints is few minutes, days. 33% of respondents said few hours, 22% of respondents said one day, 1% of respondents said more than 2

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Graph No. 11: opinion about time the Complaints

Table showing respondents take to attend

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Table

No.

12:

Table

showing

respondents total call

opinion about average duration


Sl.n o. 1 2 3 4 Factors Less than 30 min. 30 min. 60 min. 60 min. 90 min. More than 90 min. Total No. of %

of

respondents 43 39 4 14 100

respondents 43% 39% 4% 14% 100%

Interpretation
From the above table it is clear that 43% of the respondents said less than 30 min. about average total call duration, 39% of them said 30-60 min., 4% of them said 60-90 min., 14% of them said more than 90 min.

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Graph No. 12: Table showing respondents opinion about average total call duration

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Customer retention model for Postpaid.

Table

No.

13:

Table

showing

respondents of

opinion about prepaid recharge offer


Sl.no. 1 2 3 4 5 Factors Rs. 10 30 Rs. 30 50 Rs. 100 150 Rs. 150 300 Rs. 500 & above Total No.

preference

of %

of

respondents 34 30 26 10 0 100

respondents 34% 30% 26% 10% 0% 100%

Interpretation
From the above table it is clear that 34% of the respondents prefer Rs. 10-30 recharge offer, 30% of them prefer Rs. 30 50, 26% of them prefer Rs. 100 150, 10% of them prefer Rs. 150 300, 0% of them prefer Rs. 500 and above.

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Customer retention model for Postpaid.

Graph

No.

13:

Table

showing

respondents preference

opinion about of prepaid recharge offer

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Customer retention model for Postpaid.

Table

No.

14:

Table

showing

respondents on

opinion about prepaid bill in a month


Sl.n o. 1 2 3 4 Factors Rs. 150 250 Rs. 250 350 Rs. 400 500 Rs. 500 & above Total No.

expenditure

of %

of

respondents 59 30 6 5 100

respondents 59% 30% 6% 5% 100%

Interpretation
From the above table it is clear that 59% of the respondents spend Rs. 150 250 for prepaid bill in a month. 30% of them spend Rs. 250-350, 6% of them spend Rs. 400500, 5% of them spend Rs. 500 & above.

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Customer retention model for Postpaid.

Graph

No.

14:

Table

showing

respondents

opinion about prepaid bill in a month

expenditure on

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Customer retention model for Postpaid.

Table

No.

15:

Table

showing of

respondents media for

opinion about selection customers


Sl.n o. 1 2 3 4 Factors No.

advertisement to reach prospective

of %

of

respondents Newspap 16 er Televisio n Magazin e Other Total 81 3 0 100

respondents 16% 81% 3% 0% 100%

Interpretation
These are the days of competition where in plenty of players are there in a particular field. Its not enough to provide only best services. To create awareness about their existence best media should be selected for advertisement. From the above table it is clear that 81% of the respondents said that television is the best media for advertisement to reach the prospective customers, 16% of them said newspaper, 3% of them said magazine, 0% of them said others.

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Customer retention model for Postpaid.

Graph

No.

15:

Table to

showing of reach

respondents media for prospective

opinion about selection advertisement customers

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Customer retention model for Postpaid.

Table

No.

16:

Table

showing

respondents

awareness about voice


Sl.n o. 1 2 Factors No. Yes No Total

SMS service
of % of

respondents 72 28 100

respondents 72% 28% 100%

Interpretation:

From the above table it is clear that 72% of respondents know about the voice SMS services and 22% of respondents no.

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Customer retention model for Postpaid.

Graph

No.

16:

Table

showing

respondents

awareness about voice

SMS service

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Customer retention model for Postpaid.

Table

No.

17:

Table

showing

respondents

opinion about the advertisement


Sl.n o. 1 2 3 4 Factors More impressive Less impressive Average Poor Total No. of % of

respondents 80 7 13 0 100

respondents 80% 7% 13% 0% 100%

Interpretation
Advertisement can do wonders if that is properly done through effective way, it helps the company to persuade the general public to persuade the good or service advertised. From the above table it is clear that 80% of the respondents feel more impressive about advertisement, 13% of them feel average, 7% of them feel less impressive, 0% of them feel poor.

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Customer retention model for Postpaid.

Graph No. 17: Table showing respondents opinion about the advertisement

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Table

No.

18:

Table

showing

respondents service

opinion about cost of

IDEA

compares to other companies service


Sl.no. 1 2 3 4 Factors High Affordabl e Expensiv e Low Total No. of % of

respondents 15 60 25 0 100

respondents 15% 60% 25% 0% 100%

Interpretation
From the above table it is clear that 60% of respondents feel cost is affordable when compare to other company, 5% of them feel high, 25% of them feel expensive, 0% of them feel low.

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Customer retention model for Postpaid.

Graph

No.

18:

Table

showing

respondents service

opinion about cost of

IDEA

compares to other companies service

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Customer retention model for Postpaid.

Table

No.

19:

Table

showing

respondents

opinion about IDEA

service

compatible with needs of customer


Sl.n o. 1 2 Factors No. Yes No Total of % of

respondents 89 11 100

respondents 89% 11% 100%

Interpretation
From the above table it is clear that 89% of the respondents say yes about the IDEA service is compatible with needs of customers 11% of the respondents say No.

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Customer retention model for Postpaid.

Graph

No.

19:

Table

showing

respondents

opinion about IDEA

service

compatible with needs of customer

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Customer retention model for Postpaid.

Table

No.

20:

Table

showing

respondents

opinion about the provided by the advertisements


Sl.n o. 1 2 Factors Yes No Total No.

information

of %

of

respondents 83 17 100

respondents 83% 17% 100%

Interpretation
Advertising is a major promotional tool for presentation and promotion of ideas of goods and services. So all the new offers and information should be communicated regularly to reach the customers. From the above it is clear that 83% of the respondents agreed that they provide information through advertisements and 17% said No.

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Graph

No.

20:

Table

showing

respondents

opinion about the provided by the advertisements

information

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Customer retention model for Postpaid.

Table 21: Table showing the opinion about the billing system in
Sl.n o. 1 2 3 Factors Correct Incorrect There are simple errors Total No.

IDEA service
of % of

respondents 59 3 38 100

respondents 59% 3% 38% 100%

Interpretation
From the above table it is clear that 59% of respondents said that the billing system is correct in IDEA, 38% of them say there are simple errors, 3% of them say incorrect.

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Customer retention model for Postpaid.

Graph 21: Table showing the opinion about the billing system in IDEA service

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Table

No.

22:

Table

showing

respondents using

opinion about reason IDEA service


Sl.no. 1 2 3 4 Factors Price difference Availability of network Schemes Additional benefits Total No.

behind

of %

of

respondents 15 36 39 10 100

respondents 15% 36% 39% 10% 100%

Interpretation
The factors such as availability of network coverage, price difference, brand image, ads play an important role in buying decision of different companys service. From the above table, it is clear that 39% of the respondents are using IDEA because of different schemes, 36% of them for availability of network, 10% of them for price difference, 10% of them for additional benefits.

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Graph

No.

22:

Table

showing

respondents using

opinion about reason IDEA service

behind

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Customer retention model for Postpaid.

Table

No.

23:

Table

showing

respondents

opinion about the about new tariff and offers


Sl.n o. 1 2 3 4 Factors Regularly Once in a week Once in 15 days Once in a month Total No.

information
of % of

respondents 62 21 7 10 100

respondents 62% 21% 7% 10% 100%

Interpretation
The new offers and tariff when offered by the company it is necessary to inform regularly so that it can reach all the customers. From the above table it is clear that 62% of the respondents said that they provide information about new tariff and offers regularly, 21% of them said once in a week, 7% of them said once in 15 days, 10% of them said once in a month.

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Graph

No.

23:

Table

showing

respondents

opinion about the about new tariff and offers

information

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Customer retention model for Postpaid.

Table 24: Table showing respondents opinion about rating of the performance Of IDEA service
Sl.n o. 1 2 3 4 5 Factors Excellent Good Satisfied Poor Not satisfied Total No. of % of

respondents 20 46 30 4 0 100

respondents 20% 46% 30% 4% 0% 100%

Interpretation
From the above table it is clear that 20% of the respondents rate excellent about the performance of IDEA service, 46% of them said good, 30% of them said satisfied, 4% of them said it is poor.

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Graph 24: Table showing respondents opinion about rating of the performance Of IDEA service

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Customer retention model for Postpaid.

Table

No.

25:

Table

showing

respondents

opinion about service as best service


Sl.n o. 1 2 Factors No. Yes No Total

preference of IDEA

of %

of

respondents 86 14 100

respondents 86% 14% 100%

Interpretation
Service should be elegant and change from time in such way it should create demand for present trend and attract prospective buyers by its unique service. From the above table it is clear that 86% of the respondents agreed idea service as best service, 14% of them said No.

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Customer retention model for Postpaid.

Graph

No.

25:

Table

showing

respondents preference of

opinion about IDEA service as best service

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Customer retention model for Postpaid.

Table

No.

26:

Table

showing

respondents

opinion about suitability to particular category


Sl.n o. 1 2 3 4 Factors High class people Middle class people Youngsters All the above Total No. respondents 10 24 31 35 100

of IDEA service

of %

of

respondents 10% 24% 31% 35% 100%

Interpretation
According to the purchasing power of the buyer they will prefer the particular service. From the above table it is clear that 35% of the respondents said for All the above, 31% of them feel for youngsters, 24% of them feel for middle class people, 10% of them feel for high class people.

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Graph

No.

26:

Table

showing

respondents

opinion about suitability to particular category

of IDEA service

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Customer retention model for Postpaid.

Table

No.
Sl.n o. 1 2 3 4

27:

Table

showing
of %

respondents credit service


of

opinion about chota


Factors No. Excellen t Good Better Poor Total respondents 24 44 28 4 100

respondents 24% 44% 28% 4% 100%

Interpretation
As the competition level grows day-by-day, every marketer has to anlayse the service innovation patterns of their competitors and add the extra service to attract customers. From the above table it is clear that 24% of the respondents said excellent about the chota credit service, 44% of them said good, 28% of them said better, 4% of them said poor.

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Customer retention model for Postpaid.

Graph

No.

27:

Table

showing

respondents

opinion about chota

credit service

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Customer retention model for Postpaid.

Table

No.

28:

Table

showing

respondents service

opinion about caller tune


Sl.n o. 1 2 3 Factors Satisfied Highly satisfied Dissatisfied Total No. respondents 80 4 16 100 of %

of

respondents 80% 4% 16% 100%

Interpretation
Introducing of new service help the company to attract more customers. From the above table it is clear that 80% of the respondents feel satisfied about caller tune service, 4% of them are highly satisfied, 16% of them are dissatisfied.

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Customer retention model for Postpaid.

Graph

No.

29:

Table

showing

respondents

opinion about caller

tune service

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Customer retention model for Postpaid.

Table No 30: Table showing respondents opinion about the dealer Relationship
Sl.n o. 1 2 3 4 Factors Healthy and harmonious More information Not so customer friendly Less co-operative Total No. respondents 33 45 10 12 100 of % of respondents 33% 45% 10% 12% 100%

customer

Interpretation
The success of any business depends largely on the confidence and loyalty of the customers. This can be gained only by giving good services in order to develop a good dealercustomer relationship. From the above table it is clear that 45% of the respondents said that the dealer customer relationship is more informative. 33% of them feel healthy and harmonious, 12% of them feel less co-operative, 10% of them feel not so customer friendly.

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Customer retention model for Postpaid.

Graph

No

30:

Table

showing

respondents

opinion about the dealer Relationship

customer

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Customer retention model for Postpaid.

Table

NO.

31:

Table

showing

respondents

opinion about SMS pack


Sl.n o. 1 2 3 4 Factors High Affordable Expensive Low Total No. respondents 27 46 15 12 100 of % of

respondents 27% 46% 15% 12% 100%

Interpretation
From the above table it is clear that 46% of the respondents feel that SMS pack is affordable, 27% of them feel it is high, 15% of them feel expensive, 12% of them feel low.

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Customer retention model for Postpaid.

Graph

NO.

31:

Table

showing

respondents

opinion about SMS pack

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Customer retention model for Postpaid.

Table

No.

32:

Table

showing
of %

respondents
of

opinion about call rates


Sl.no. 1 2 3 4 Factors No. respondents High 19 Affordab 46 le Expensi ve Low Total 25 10 100

of Idea Services
respondents 19% 46% 25% 10% 100%

Interpretation
From the above table it is clear that 46% of respondents feel affordable about the call rates of Idea service, 25% of them feel expensive, 19% of them feel high, 10% of them feel low.

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Customer retention model for Postpaid.

Graph

No.

32:

Table

showing of

respondents Idea

opinion about call rates Services

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Customer retention model for Postpaid.

Table 33: Table showing respondents opinion about frequently price of IDEA
Sl.n o. 1 2 Factors Yes No Total No. respondents 53 47 100 of % of respondents 53% 47% 100%

increase

in

the

Interpretation
From the above table it is clear that 53% of respondents say Yes, there is increase in the price of IDEA frequently, 47% of them say NO.

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Graph 33: Table showing respondents opinion about frequently IDEA increase in the price of

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Table No: 34 Table title: Table showing respondents opinion about SMS pack.
Sl. No. 1 2 3 4 No of Respondents 27 46 15 12 100 % of respondents 27% 46% 15% 12% 100%

Factors High Affordable Expensive Low Total

Interpretation: From the above table it is clear that 46% of the respondents feel SMS Pack is affordable, 27% of them feel it is high, 15% of them feel expensive, 12% of them feel low.

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Graph

34: Table showing respondents opinion

about SMS pack.

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Table No: 35 Table title: Table showing respondents opinion about the all rates
Sl. No. 1 2 3 4

of Idea service.
No of Respondents 19 46 25 10 100 % of respondents 19% 46% 25% 10% 100%

Factors High Affordable Expensive Low Total

Interpretation: From the above table it is clear that 46% of respondents feel affordable about the call rates of Idea service, 25% of them feel expensive, 19% of them feel high, 10% of them feel low.

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Graph 35: Table showing respondents opinion about the all service. rates of Idea

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Table No: 36 Table title: Table showing respondents opinion about frequently Idea.
Sl. No. 1 2 No of Respondents 53 47 100 % of respondents 53% 47% 100%

increase in the price of

Factors

Yes No Total Interpretation:

From the above table it is clear that 53% of respondents say yes there is increase in the price of Idea frequently 47% of them say No.

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Graph 36: Table showing respondents opinion about frequently Idea. increase in the price of

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CHAPTER - 7

FINDINGS
1. According to the survey results 48% of the respondents came to know about the IDEA services through friends. 2. From the survey it is found that 65% of the respondents feel good about Idea services. 3. From the survey it is found that 87% of the respondents are using pre-paid services.
4. About 55% of the respondents has said that the pricing of

Idea sim card is value for money. 5. From the survey, it is found that 54% of the respondents have said that the pricing of life time validity is value for money.
6. Out of the respondents interview 78% of the respondents

are aware of Chota recharge offered by the IDEA service. 7. About 54% of the respondents said good about the customer care service.
8. Majority of buying decision of the respondents is mainly

based on price, brand image, best services, good net work coverage. About 40% of the respondents consider good network coverage while purchasing the service. 9. From the extracts, its found that 47% of the respondents have not experienced about disturbance like sudden disconnection. 10.44% of the respondents agreed that the time taken to attend their complaints is few minutes.

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Customer retention model for Postpaid. 11.About 43% of the respondents said average total call duration is less than 30 min. 12.From the extract it is found that 34% of the respondents prefer Rs. 10-30 recharge.
13. About 59% of the respondents spend Rs. 150-250 for the

prepaid bill in a month., 14.81% of the respondents said that the television is the best media for advertisement to reach prospective customer.
15. Out of the respondents interviewed 72% of

respondents

were aware of voice SMS service. 16.44% of the respondents feel more impressive about the advertisement. 17.60% of respondents feel Idea service affordable when compared to other company service. 18.About 89% of the respondents feel IDEA is compatible with the needs of customers.
19. From the extracts, it is found that 83% of the respondents

feels

that

IDEA

advertisement

will

provide

update

information. 20.From the survey, 59% of respondents feel that the billing system is correct. 21.About 39% of the respondents purchase Idea service because of the schemes. 22.About 62% of the respondents said that the information informed about new offers and plans are regular.
23. From the survey it is clear that 46% of the respondents

impression regarding Idea service is good.


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Customer retention model for Postpaid. 24.About 86% of the respondents said that Idea service is the best service. 25.From the survey it is found that 35% of the respondents feel that the service is suitable for all the categories.
26. About 44% of the respondents said good about the chota

credit service. 27.From the extracts, it is found that 80% of the respondents are satisfied with caller-tune service. 28.About 44% of the respondents feel that the dealercustomer relationship is more informative. 29.About 46% of the respondents said SMS pack is affordable. 30.About 46% of the respondents feel affordable about the call rates of Idea service.
31. About the 53% of the respondents said that there is

increase in price of Idea frequently.

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CHAPTER - 8

SUGGESTIONS
1. Increased customer benefit
Every customer wants to receive certain benefits from the marketers. If the consumers benefits are hampered in the long run the brand would suffer. Therefore, Idea should maintain a sense of balance between benefits provided and price charged. For this they can adopt the following measures: Reducing SMS charges during occasion times. Reducing the rates for extra services like cricket scores, health tips and plans details. Reducing the call rates for life time card so that it should be affordable to all customers.

1. Concentrate on effective and informative advertisement strategies


We are living in the information era. Those are the days when company used to develop something and continue it for a long time. The product life cycle has shortened. Hence, company should provide more information to customers in order to attract them. Develop information and attractive advertisement strategies that should appeal to the customers.

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Company should go for advertising about the service in all most all medias especially through television.

The advertisement should bring out the superiority or compatibility of the product when compared to their competitive brands.

1. Discounts and offers


Discounts and offers can include innovation features. Most companies will adjust their list price and give discounts and offers of every payment. Volume purchases and off season buying, companies must do them carefully or find that their profits are less much than planned.

2. To be more customer friendly


To retain customers, every brand in telecommunication is trying lot of narrative ways to adopt. Without having continuous innovation, which fits the need of consumers. No one can survive continuously in the market. Idea in this aspect can do the following: Increase the percentage of talk time. Conducting periodical research so that consumer can express their views and ideas. Maintaining close relationship with loyal customers by sending wishes during occasions. Welcome suggestions from customers Providing efficient customer care service

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CHAPTER 9

CONCLUSION
The history of humanity has been marked by fundamental charges in the way we live work and play. Many of these changes were brought about by revolution in communication technology. IDEA being the largest telecom company at present, having the mission of making the most of now and happy to help, continues enjoying the status as a premium telecom company. But in the recent past there have been some changes in increase in competitors, customers expectations, tariff regulation etc. which forces IDEA to focus on certain aspects to possess good future business performance, they are: Reducing call rates especially for life time card Increasing net work coverage To become customer friendly Providing more discounts and offers Reducing SMS charges So IDEA services as to concentrate on above aspects to become worlds leading mobile communication company and to create new passion around the world.

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GLOSSARY
1. DOT 2. TRAI 3. SMS 4. PSTN 5. NLD 6. VSNL 7. GSM 8. CDMA 9. ISP

Department of Telecom Telecom Regulatory Authority of India Short Messaging Services Public Telephone Switched Network National Long Distance Videsh Sanchar Nigam Limited Global System for Mobile Communication Code Division Multiple Access Internet Service Providers

1. Service Sector: That portion of the economy whose output is services, or opposite to goods. 2. Services: Intangible products that offer financial legal medical recreational or benefits to the consumer. 3. Tariff: A tax imposed by a government on goods entering its borders. 4. Survey: A method of gathering data directly from consumers via a questionnaire. 5. Strategic marketing planning: the process of exploring marketing opportunities, investing time and money to pursue those opportunities and predicting the outcome of those investments.

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BIBLIOGRAPHY
Books & Magazines

Prof. Dhandapani Alagiri Faculty Members, The ICFAI Business School, Jaipur Telecommunications in India: Emerging Scenario. The ICFAI University Press, November 2007. Y Bala Bharathi & Sanjay De Indian Telecom: Ringing in Sync, The Analyst. December, 2008. Philip Kotlers, Principles of Marketing, Marketing and its importance, April 2008.

ICFAI Publications (MBA), Service Management, Service and its related strategies, Feb. 2008.

Websites

www.ideacellular.com http://www.managementparadise.com/forums/ser vice-sector-management-s-s-m/17155-overviewtelecom-sector.html www.google.com http://www.thehindubusinessline.com/2009/01/20/ stories/2009012051770100.html

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QUESTIONNAIRE
Dear Respondents, I am ABHILASH . S. student of final year MBA in PES SCHOOL OF ENGINEERING conducting a project on Customer Retention Model for Postpaid. I would be great full if you could spare some time to answer these questions. All information given by you will be treated as strictly confidential. Your response would be helpful on making this project a success. 1. Name 2. Sex:
a. Male

b. Female b. 25 to 35 d. 50 & above b. Employed d. others b. Rs. 15000 30000 d. None

1. Age:
a. 18 to 24

c. 35 to 50 4. Occupation: a. Student c. Business 5. Monthly Income a. Less than Rs. 10000 c. Rs. 30000 50000

6. Are you utilizing Idea Services? a. Yes b. No

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Customer retention model for Postpaid. 7. How do you know about the Idea services? a. Dealer c. Relatives e. Colleagues a. Before 10 years c. Before 1 year a. Excellent c. Better a. Post Paid a. Cheaper c. Too high price a. Cheaper c. Too high price a. Excellent c. Better services? a. Price c. Best service e. Good Network Coverage 16. Does the Idea have any disturbance like sudden disconnection?
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b. Friends d. Media f. Others b. Before 5 years d. Before 5months b. Good d. Poor b. Prepaid b. Value for money d. Expensive b. Value for money d. Expensive b. Good d. Poor

8. How long do you know about Idea services?

9. What is your opinion about Idea services?

10. Which Idea Services are you using? 11. How do you feel about the price of the Idea Sim card?

13. What is the opinion about the price of the life time validity?

14. What is your opinion about customer care services of Idea?

15. Which attributes do you prefer to forward regarding Idea b. Brand Image d. Customer services

Customer retention model for Postpaid. a. Yes a. Few minutes c. One day a. Less than 30 min c. 60 min 90 min b. No b. Few hours d. More than 2 days b. 30 min 60 min d. More than 90 min

17. What is the time taken to attend any of your complaints?

18. specify the average total call duration per day?

19. Which media is suitable for advertisement so that it can reach more no. of prospective customer? a. Newspaper c. Magazine a. More Impressive c. Average b. Television d. Others b. Less Impressive d. Poor

20. What is your opinion about advertisements?

21. Is the cost of Idea service is high compared to other services? a. High b. Affordable c. Expensive customers? a. Yes information? a. Yes a. Correct b. No b. Incorrect 24. What is the correct opinion about the billing system? c. There are simple errors 25. What is the reason behind using Idea services?
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d. Low

22. Does the services of Idea is compatible with the need of b. No

23. Do you feel that advertisements provide you update

Customer retention model for Postpaid. a. Price difference c. Schemes offers and Plans? a. Regularly c. Once in 15 days Service? a. Excellent c. Poor a. Yes a. High Class people c. Youngsters b. Good d. Bad b. No b. Middle class people d. All the above b. Once in a week d. Once in month b. Availability of Network d. Additional Benefits

26. How often does the Idea company inform you about new

27. How would you rate the service performance of Idea

28. Do you prefer Idea service as best service? 29. Which category of people purchase Idea services?

30. What do you feel about the dealers customer relationship? a. Healthy & Harmonious b. More Informative c. Not so customer friendly a. High c. Expensive a. Yes a. Yes b. No b. No d. Less co-operative b. Affordable d. Low 31. What do you feel about the call rates of Idea service?

32. Is there any increase in the price of Idea frequently? 33. Whether Idea is comfortable for usage?

34. Do you need any changes in Idea? a. Offers c. Validity


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35. What is your suggestion about the Idea Service?

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