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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 21 st 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.

Dept. of MBA, PESSE. 2011 2012 Page 1


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Idea cellular is a publicity listed company having listed on

the BSE (Bangalore Stock Exchange) and the NSE (National

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 customersfriends 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 19 th 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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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 cellularhas 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 25nationalities. 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.

HistoryIncorporated 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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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 inthe 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. Acquiredspice 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 19 th 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 toupdate 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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be done in future to increase demands will be highly fruitful for

the company betterment.

Hence, this study aims at analyzing the servicereliability of Idea company in Tumkur city.



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Objectives of the study1. 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 andresponse. 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 thisparticular 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 designA 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 thesolution of some specific problem.

Market research design can be classified on the basis of

the fundamental objectives of the research

Explanatory Descriptive

Casual


Research design


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Research design adopted for the studyDescriptive 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 MethodPrimary data can be collected in 5 ways for the study of

the problem.

Observation Test Marketing Experimental

Consumer Panel

Personal Interview

Telephone Mail

Personal interview techniques are used backed up by

structured questionnaire, a famous research tool for the study.

Research instrumentA structured questionnaire of both open and closed end is

felt necessary for the research problem.

Data collection or sources of dataWhen 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.


Research


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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 dataA 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 dataSecondary 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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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 MarketAs the 21 st 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.

MarketMarket is a place where buyer and seller interact together

for purchase and sales of goods and services. According to



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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 processbetween sellers and buyers. Exchange is the heart of

commerce or marketing.

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


Market

Body of Body of Market the circle of Exchange

Feedback informationsatisfaction


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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 and demands: products (goods,

services and ideas); value and satisfaction exchange and

transactions; relationships and network; marketers and

prospects.

These concepts are illustrated below:

Marketing managementMarketing 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


Needs,Wants &demands

Products,goods;services &

Value, costand

satisfactio

Exchangeand

Relationship andMarkets

Marketers&


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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, recordingand 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 coversMarket research, sales research, product research,

advertising and promotion research, research on sales methods

and policies, distribution research including the dealers

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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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.

SurveysA 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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As such, sampling survey is widely accepted. Data

collection under the survey method is of three types.

1. Personal interview

2. Mail questionnaire3. Telephone interview

ProductA 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. Tangibility2. Intangible attributes

3. Associated attributes

4. Exchange value

5. Consumer satisfaction

Product mixA 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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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 preferenceIt 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 preferenceConsumer 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 servicesoffered 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 bestquality 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 buythe 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 conceptAccording 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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and wants more effectively and efficiently than

competitors.

Service qualityIt is difficult for customers to evaluate services ascompared 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

ResponsivenessResponsiveness 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.

AssuranceAssurance 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.

EmpathyEmpathy is the ability to provide caring individualized

attentions the firm provides its customers. Empathy meanstreating 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 tangiblefeatures. The service organization try to enhance their image,

provide continuity and through tangibles signal quality to

customers.



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ReliabilityIn 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 - Service is available when desired

2. Continuity - customers has uninterrupted service over

desired duration

3. Performance - meets the customer expectations



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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 segmentationIt 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 telecomindustry in India.

The market for telecom industry can be divided into

following segments based on the consumer.

Individual The most important segment is that of individual

customers or households. Because of the monopoly of

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.

CorporateCorporate 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 ruralcustomer. 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.

UrbanIn 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 makeeconomic 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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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 mobilephone 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'snoticed 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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Weik defines radio as:

"1. A method of communicating over a distance by modulating

electromagnetic waves by means of an intelligence bearing-

signal 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 thecarrier 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 quicklylooked 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 liberalizedto 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 initiated1999(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 IndiaRecently 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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cells continuously monitor the operators to check the grey

market cells.

Chapter 5

COMPANY PROFILE

IDEA Type - Public

Founded - 1995

Head quarters - MumbaiKey people - M.R. Prasanna,

CEO

Kumar Mangalam,

Chairman

Rajesh Birla,

ChairpersonIndustry - Mobile tele-

communicationsProducts - Mobile networks,

Telecom services, etc.

Revenue - 1946.5 million (2009)

Net income - 103344.41million (2009)

Idea is a mobile network operator with its headquarters in

Mumbai. It is the largest mobile tele communications network



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company in the world by turnover and has a market value of

about 75 billion (2008).

As Indias leading GSM mobile services operator, IDEAcellular 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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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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Awards & rewards of the company1. Buzziest Brand in India 2009

Idea voted 4 th 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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Cluster headArea ManagerBranch ManagerSales ManagerShop Manager2 Marketing Executives4 customer care executives2 Office boys


ORGANIZATION STRUCTURE



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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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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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Chapter 6

DATA ANALYSIS AND INTERPRETATIONTable No. 1: Table showing respondents

using Idea services

Sl.n

o.

Factor

s

No. of

respondents

% of

respondents

1 Yes 100 100%2 No 0 0% Total 100 100%

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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Graph No. 1: Table showing respondents

using Idea services



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Table NO.2 : Table showing respondents

knowledge of the Idea service throughdifferent sources

Sl.n

o.

Factors No. of

respondents

% of

respondents1 Dealer 6 6%

2 Friends 48 48%

3 Relative

s

4 4%

4 Media 36 36%

5 Colleagu

es

1 1%

6 Others 5 5%

Total 100 100%

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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Graph NO.2 : Table showing respondents

knowledge of the Idea service throughdifferent sources



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Table No. 3: Table showing respondents opinion

about IDEA services

Sl.n

o.

Factor

s

No. of

respondents

% of

respondents1 Excelle

nt

14 14%

2 Good 65 65%3 Better 21 21%4 Poor 0 0%

Total 100 100%

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 opinionabout IDEA services



54/130


Table No. 4: Table showing respondents

opinion on payment PreferenceSl.n

o.

Factor

s

No. of

respondents

% of

respondents1 Post

paid

13 13%

2 Pre-

paid

87 87%

Total 100 100%

InterpretationCustomers 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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opinion on payment

Preference



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Table NO. 5: Table showing respondents opinion

about pricing of IDEA sim cardSl.n

o.

Factors No. of

respondents

% of

respondents1 Cheaper 45 45%2 Value for

money

55 55%

3 Too high

price

0 0%

4 Expensive 0 0% Total 100 100%

InterpretationPrice 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.


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 opinionabout pricing of IDEA sim card



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about pricing of IDEA Life Time ValiditySl.n

o.

Factors No. of

respondents

% of

respondents1 Cheaper 25 25%2 Value for

money

50 50%

3 Too high

price

20 20%

4 Expensive 5 5% Total 100 100%

InterpretationPrice 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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awareness about chota recharge offered

by IDEA service

Sl.n

o.

Factor

s

No. of

respondents

% of

respondents1 Yes 78 78%2 No 22 22%

Total 100 100%

InterpretationCustomers awareness towards its various services

indicates the efficiency of companies promotional strategy.


respondents have awareness about chota recharge offered by

IDEA and 22% have not aware about chota recharge offered.



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awareness about chota rechargeoffered by IDEA service



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about customer care service

Sl.n

o.

Factors No. of

respondents

% of

respondents1 Excellen

t

16 16%

2 Good 54 54%3 Better 21 21%4 Poor 9 9%

Total 100 100%

Interpretation


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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about the buying decision

Sl.no. Factors No. of

respondents

% of

respondents1 Price 15 15%2 Brand image 25 25%3 Best service 19 19%4 Customer service 1 1%

5 Good networkcoverage

40 40%

Total 100 100%

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, fewconsumers give importance for price, brand image, some

others for network coverage.


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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Graph No. 9: Table showing respondents opinionabout the buying decision



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experience about disturbance Likesudden disconnection

Sl.n

o.

Factor

s

No. of

respondents

% of


Total 100 100%

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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experience aboutdisturbance Like sudden

disconnection



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opinion about time take to attend theComplaints

Sl.n

o.

Factors No. of

respondents

% of

respondents1 Few minutes 44 44%2 Few hours 33 33%

3 One day 22 22%4 More than 2

days

1 1%

Total 100 100%

Interpretation


said that the time taken to attend the complaints is few

minutes, 33% of respondents said few hours, 22% of

respondents said one day, 1% of respondents said more than 2

days.



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opinion about time take to attendthe Complaints



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opinion about average total callduration

Sl.n

o.

Factors No. of

respondents

% of

respondents1 Less than 30

min.

43 43%

2 30 min. 60min.

39 39%

3 60 min. 90

min.

4 4%

4 More than 90

min.

14 14%

Total 100 100%

InterpretationFrom 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 respondentsopinion about average total callduration



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opinion about preference of prepaid recharge offer


respondents

% of

respondents1 Rs. 10 30 34 34%2 Rs. 30 50 30 30%

3 Rs. 100 150

26 26%

4 Rs. 150

300

10 10%

5 Rs. 500 &

above

0 0%

Total 100 100%


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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opinion about preferenceof prepaid recharge offer



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opinion about expenditure onprepaid bill in a month

Sl.n

o.

Factors No. of

respondents

% of

respondents1 Rs. 150

250

59 59%

2 Rs. 250 350

30 30%

3 Rs. 400

500

6 6%

4 Rs. 500 &

above

5 5%

Total 100 100%


respondents spend Rs. 150 250 for prepaid bill in a month.

30% of them spend Rs. 250-350, 6% of them spend Rs. 400-

500, 5% of them spend Rs. 500 & above.



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opinion about expenditure onprepaid bill in a month



76/130



opinion about selection of media foradvertisement to reach prospective

customers

Sl.n

o.

Factors No. of

respondents

% of

respondents1 Newspap

er

16 16%

2 Televisio

n

81 81%

3 Magazin

e

3 3%

4 Other 0 0% Total 100 100%

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.


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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opinion about selection of media foradvertisement to reach prospective

customers



78/130



awareness about voice SMS service

Sl.n

o.

Factors No. of

respondents

% of


Total 100 100%

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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awareness about voice SMS service



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opinion about theadvertisement

Sl.n

o.

Factors No. of

respondents

% of

respondents1 More

impressive

80 80%

2 Lessimpressive

7 7%

3 Average 13 13%4 Poor 0 0%

Total 100 100%

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.


respondents feel more impressive about advertisement, 13% of

them feel average, 7% of them feel less impressive, 0% of

them feel poor.



81/130


Graph No. 17: Table showing respondentsopinion about the advertisement



82/130



opinion about cost of IDEA servicecompares to other companies service


respondents

% of

respondents1 High 15 15%2 Affordabl

e

60 60%

3 Expensiv

e

25 25%

4 Low 0 0% Total 100 100%

Interpretation


feel cost is affordable when compare to other company, 5% of

them feel high, 25% of them feel expensive, 0% of them feel

low.



83/130



opinion about cost of IDEA servicecompares to other companies service



84/130



opinion about IDEA servicecompatible with needs of customer

Sl.n

o.

Factors No. of

respondents

% of


Total 100 100%

Interpretation


respondents say yes about the IDEA service is compatible with

needs of customers 11% of the respondents say No.



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opinion about IDEA servicecompatible with needs of customer



86/130



opinion about the informationprovided by the advertisements

Sl.n

o.

Factors No. of

respondents

% of


Total 100 100%

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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opinion about the informationprovided by the advertisements



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Table 21: Table showing the opinion about the

billing system in IDEA service

Sl.n

o.

Factors No. of

respondents

% of

respondents1 Correct 59 59%2 Incorrect 3 3%3 There are simple

errors

38 38%

Total 100 100%

Interpretation


said that the billing system is correct in IDEA, 38% of them say

there are simple errors, 3% of them say incorrect.



89/130


Graph 21: Table showing the opinion about the

billing system in IDEA service



90/130



opinion about reason behind usingIDEA service


respondents

% of

respondents1 Price difference 15 15%2 Availability of

network

36 36%

3 Schemes 39 39%4 Additional

benefits

10 10%

Total 100 100%

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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opinion about reason behind usingIDEA service



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opinion about the informationabout new tariff and offers

Sl.n

o.

Factors No. of

respondents

% of

respondents1 Regularly 62 62%2 Once in a

week

21 21%

3 Once in 15

days

7 7%

4 Once in a

month

10 10%

Total 100 100%

Interpretation

The new offers and tariff when offered by the company it

is necessary to inform regularly so that it can reach all thecustomers. 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.



93/130



opinion about the informationabout new tariff and offers



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Table 24: Table showing respondents opinionabout rating of the performance Of IDEAservice

Sl.n

o.

Factors No. of

respondents

% of

respondents1 Excellent 20 20%2 Good 46 46%3 Satisfied 30 30%4 Poor 4 4%

5 Notsatisfied

0 0%

Total 100 100%

Interpretation


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 opinionabout rating of the performance Of IDEAservice



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opinion about preference of IDEAservice as best service

Sl.n

o.

Factors No. of

respondents

% of


Total 100 100%

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 therespondents agreed idea service as best service, 14% of them

said No.



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opinion about preference of IDEA service as best service



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opinion about suitability of IDEA serviceto particular category

Sl.n

o.

Factors No. of

respondents

% of

respondents1 High class

people

10 10%

2 Middle classpeople

24 24%

3 Youngsters 31 31%4 All the above 35 35%

Total 100 100%

Interpretation

According to the purchasing power of the buyer they will

prefer the particular service.


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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opinion about suitability of IDEA serviceto particular category



100/130



opinion about chota credit serviceSl.n

o.

Factors No. of

respondents

% of

respondents1 Excellen

t

24 24%

2 Good 44 44%3 Better 28 28%4 Poor 4 4%

Total 100 100%

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 therespondents 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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opinion about chota credit service



102/130



opinion about caller tune service

Sl.n

o.

Factors No. of

respondents

% of

respondents1 Satisfied 80 80%2 Highly

satisfied

4 4%

3 Dissatisfied 16 16% Total 100 100%

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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opinion about caller tune service



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Table No 30: Table showing respondents opinion

about the dealer customerRelationship

Sl.n

o.

Factors No. of

respondents

% of

respondents1 Healthy and

harmonious

33 33%

2 More information 45 45%3 Not so customer

friendly

10 10%

4 Less co-operative 12 12% Total 100 100%

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 dealer-customer relationship.


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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Graph No 30: Table showing respondents

opinion about the dealer customerRelationship



106/130


Table NO. 31: Table showing respondents

opinion about SMS pack

Sl.n

o.

Factors No. of

respondents

% of

respondents1 High 27 27%2 Affordable 46 46%3 Expensive 15 15%4 Low 12 12%

Total 100 100%

Interpretation


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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Graph NO. 31: Table showing respondents

opinion about SMS pack



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opinion about call rates of Idea ServicesSl.no. Factors No. of

respondents

% of

respondents1 High 19 19%2 Affordab

le

46 46%

3 Expensi

ve

25 25%

4 Low 10 10% Total 100 100%

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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opinion about call rates of IdeaServices



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Table 33: Table showing respondents opinion

about frequently increase in theprice of IDEA

Sl.n

o.

Factors No. of

respondents

% of


Total 100 100%

Interpretation


say Yes, there is increase in the price of IDEA frequently, 47%

of them say NO.



111/130


Graph 33: Table showing respondents opinion

about frequently increase in the price of IDEA



112/130


Table No: 34

Table title: Table showing respondents opinion

about SMS pack.

Sl.

No.Factors

No of

Respondents

% of

respondents1 High 27 27%2 Affordable 46 46%

3 Expensive 15 15%4 Low 12 12%Total 100 100%

Interpretation:


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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about SMS pack.



114/130


Table No: 35

Table title: Table showing respondents opinionabout the all rates of Idea service.

Sl.

No.Factors

No of

Respondents

% of

respondents1 High 19 19%2 Affordable 46 46%3 Expensive 25 25%4 Low 10 10%

Total 100 100%

Interpretation:


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 rates of Idea

service.



116/130


Table No: 36

Table title: Table showing respondents opinionabout frequently increase in the price of

Idea.

Sl.

No.Factors

No of

Respondents

% of


Total 100 100%Interpretation:


say yes there is increase in the price of Idea frequently 47% of

them say No.



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about frequently increase in the price of Idea.



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CHAPTER - 7

FINDINGS1. 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 thecustomer 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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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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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.Fr

Anusha Report

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