Customer Satisfaction Survey- Comparative Study (Final Report)

CUSTOMER SATISFACTION SURVEY

COMPARATIVE STUDY

Acknowledgement

2

Abstract

The present study is undertaken to understand the customer satisfaction of the products mentioned below and conduct a detailed analysis comparing them on the basis of the data collected by survey conducted using questionnaires prepared specifically for this purpose.

The products taken into account on which a comparative study has been done are as follows :

1) Softdrinks – Pepsi & Thums Up2) Mobile Phone Service Operators – BSNL , Reliance

Communications , Idea Cellular & Vodafone Essar

The data was processed using computer aided tools such as MS Word and MS Excel and the study was limited to Ahmedabad city only .

3

Table of Contents

Page No

Acknowledgement

Abstract

Chapter 1 : Introduction 6

1.1 Customer Satisfaction 7

1.2 Soft Drinks 8

1.3 Major Players in Soft Drinks Segement 9

1.4 Pepsi 10

1.5 Thums Up 12

1.6 Indian Telecom Industry 14

1.7 Mobile Phone Service Operators 14

1.8 Vodafone Essar 15

1.9 Idea Cellular 16

1.10 BSNL 17

1.11 Reliance Communications 18

Chapter 2 : Research Methodology 20

2.1 The Objectives & Rationale of/for the project 21

2.2 Limitations of the Project 21

2.3 Sources of Data Collection 22

2.4 Questionnaire 1 23

2.5 Questionnaire 2 25

Chapter 3 : Data Analysis & Findings 27

3.1 Analysis of Questionnaire 1 28

3.2 Conclusion 29

3.3 Analysis of Questionnaire 2 30

3.4 Conclusion 31

Chapter 4 : Conclusion 32

4.1 Pepsi & Thums Up 33

4.2 Mobile Phone Service Operators 34

Bibliography

CHAPTER 1

INTRODUCTION

6

The background of the Project 1.1 Customer Satisfaction

According to Philip Kotler , “ satisfaction is a person’s feelings of pressure or disappointment resulting from product’s perceived performance (outcome) in relation to his or her expectations. Customer satisfaction is the level of a person’s felt state resulting from comparing a product’s perceived perfomance (outcome) in relation to the person’s expectations”.

-This satisfaction level is a function of difference between perceived performance and expectations. If the product’s performance exceeds expectation, the customer is highly satisfied or delighted. If the performance matches the expectations the customer is satisfied. If the product’s performance falls short of expectations the customer is dissatisfied.

-Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better offer comes along. High satisfaction or delight creates an emotional affinity with the brand.

-Variety of factors that affect customer satisfaction include product quality, product availabilty and after sales support such as warranties and services. A company can always increase customer satisfaction by lowering its price or increasing its services but this may result in lower profits. Thus the purpose of marketing is to generate customer value profitabilty.

-Marketing in practice has to manage products , pricing , promotion and distribution. Marketing as suggested by American Marketing Association is “ an organizational function and a set of processes for

7

creating , communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders “ .

A brief introduction of all the products taken into consideration.

1.2 Soft DrinksSoft Drinks are a type of beverages, liquids specifically prepared for human consumption.The name “soft drink” specifies a lack of alcohol which is in a way contrast to the term “hard drink”. It is a non-alcoholic beverage typically contaning water and a flavoring agent. Many are carbonated and sweetened and may contain addtional ingredients such as fruit juice. Comman soft drinks include cola, flavored water, iced tea, lemon juice , squash , fruit juices, etc.

India is one of the top five markets in terms of the growth of the soft drinks market. In India , the soft drink market witnessed 5-6% growth

8

in the early ‘90s. Presently the market has growth rate of 7-8% per annum compared to 22% growth rate in the previous year.Cola products account for nearly 61-62% of the total soft drinks market.The major players in the soft drinks market in India are PepsiCo and Coca-Cola Co, like elsewhere in the world. Coca-Cola acquired a number of local brands like Limca, Gold Spot and Thums Up when it entered Indian market for the second time. Pepsi Co’s soft drink portfolio also consists of Miranda and 7Up along with Pepsi. The market share of each of the company is more or less the same, though there is a conflict in the estimates quoted by different sources.

The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric Acid/Malic acid, Colors, Preservatives, Anti Oxidants and other emulsifying agents, etc.

1.3 Major players in Soft Drinks segment

- COCA COLA

- FANTA

- LIMCA 9

- SPRITE

- THUMS UP

- MAAZA

- PEPSI

The ones taken into account for this comparative study-

1.4 PEPSI

Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. The drink was first made in the 1890s in North Carolina. The brand was first trademarked on June 16, 1903.

PepsiCo In India

-PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture

10

marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994.

-In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and The Coca-Cola Company, contained toxins,including lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer, a breakdown of the immune system and cause birth defects. Tested products included Coke, Pepsi, 7Up, Mirinda, Fanta, ThumsUp, Limca, and Sprite. CSE found that the Indian-produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca Cola's 30 times.CSE said it had tested the same products in the US and found no such residues.

-The Coca-Cola Company and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels far above the norms permitted in the developed world.

-As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in India.

-In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products.

11

Pepsi Slogans (INDIA)

-1990–1991: "Yehi hai right choice Baby UH HUH"

-1996–1997: "Pepsi:There's nothing official about it" (During the Wills World Cup (cricket) held in India/Pakistan/Sri Lanka)

-1999-2006: "Yeh dil maange more"

2009–present: "Yeh hai youngistaan meri jaan"

2009–present: "My Pepsi My Way"

2010–present "Youngistan ka wow."

1.5 Thums Up

Thums Up is a carbonated soft drink (cola) popular and largest selling brand in India, where its bold, red thumbs up logo is common. It is similar in flavour to other colas but has a unique taste reminiscent of betel nut. Introduced in 1977 to offset the expulsion of The Coca-Cola Company and other foreign companies from India, Thums Up, Limca, and Campa Cola gained nationwide acceptance. The brand was bought out by Coca-Cola which, after unsuccessful attempts at killing the brand, later re-launched it in order to compete against Pepsi.

-During the late 1970s, the American cola giant Coca-Cola abandoned operations in India rather than make a forced sale of 60% of their equity to an Indian company. Following this, the Parle brothers, Ramesh Chauhan and Prakash Chauhan, along with then CEO Bhanu Vakil, launched Thums Up as their flagship drink, adding to their portfolio of older brands Limca (lime flavor) and Gold Spot (orange flavor). Thums Up was basically a cola drink, but the company never claimed it as such. The formula was just as closely guarded as the famous Coke formula.

12

-Thums Up enjoyed a near monopoly with a much stronger market share and was one of the major advertiser’s throughtout the 1980s.

-In 1990, when the Indian government opened the market to multinationals, Pepsi was the first to come in. Thums Up went up against the international giant for an intense onslaught with neither side giving any quarter. With Pepsi roping in major Indian movie stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased its spending on Cricket sponsorship. Then the capacity went from 250ml to 300ml, aptly named MahaCola. This nickname gained popularity in smaller towns where people would ask for "Maha Cola" instead of Thums Up. The consumers were divided where some felt Pepsi’s mild taste was rather bland.

-Coca-Cola apparently did try to kill Thums Up, but soon realized that Pepsi would benefit more than Coke if Thums Up was withdrawn from the market. Instead, Coke decided to use Thums Up to attack Pepsi. The Coca-Cola Company by this time had about 60.5% share of the Indian soft-drink market but much to its dismay found out that if it took out Thums Up, it would remain with only 28.72% of the market (according to a report by NGO Finance&Trade in India), hence it once again dusted out the Thums Up brand and re-launched it targeting the 30 to 45 year olds.

-The brand was re-positioned as a “manly” drink, drawing on its strong taste qualities. Known to be a strong drink with more power packed into it than other colas, it was a favorite in Rum based Cocktails, as in “rum and Thums Up.” Thums Up kick-started an aggressive campaign directly attacking Pepsi’s TV ads, focusing on the strength of the drink hoping that the depiction of an “adult” drink would appeal to young consumers. “Grow up to Thums Up” was a successful campaign. The brand’s market share and equity soared. The brand was unshakeable and Coca-Cola’s declaration that Thums Up was India’s premier cola brand in terms of market share did not surprise many.Other campaigns from Thums Up are build on its “strength” and its perception as a macho drink.

13

1.6 Indian Telecom Industry

The Indian telecommunications industry is the world's fastest growing telecommunications industry, with 671.69 Million telephone (landlines and mobile) subscribers and 635.51 Million mobile phone connections as of June 2010. It is also the second largest telecommunication network in the world in terms of number of wireless connections after China. The Indian Mobile subscriber base has increased in size by a factor of more than one-hundred since 2001 when the number of subscribers in the country was approximately 5 million to 635.51 Million in June 2010.

Classification of Telecommunication services

-Basic Services

-Cellular Services

-Internet Service Providers (ISP)

1.7 Mobile Phone Service Operators

A mobile network operator (MNO), also known as mobile phone operator , carrier service provider (CSP), wireless service provider,wireless carrier, or cellular company, is a telephone company that provides services for mobile phone subscribers.

The essential characteristic that defines a mobile network operator is that they must have acquired a radio spectrum license from the government before they can offer mobile phone service within a

country.

14

However the operator must also deploy essential equipment in order to offer the services, most notably the radio transmitter network and the core network. In addtion, other service platforms such as voicemail and SMS centre will be deployed as well as billing and Customer Relationship Management (CRM) systems.

List of Mobile Network Operators in India

- Bharti Airtel- Reliance Communications- Vodafone Essar- Tata Teleservices (Tata Indicom, Tata Docomo, Virgin Mobile

India)- Idea Cellular

- BSNL- Aircel- Uninor- MTNL, etc

The ones taken into consideration for this Project

1.8 Vodafone Essar

Vodafone Essar, formerly known as Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is owned by Vodafone 67% and Essar Group 33%. It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel, and third largest in terms of

15

customers.Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros.

Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 licence areas. It is among the top three GSM mobile operators of India.

1.9 Idea Cellular

Idea Cellular is a wireless telephone company operating in all the 22 telecom circles in India based in Mumbai. It is the 3rd largest GSM company in India behind Airtel and Vodafone and ahead of state run player BSNL.

The company has its retail outlets under the "My Idea" banner. The company has also been the first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban areas.

Idea Cellular won the GSM Association Award for "Best Billing and Customer Care Solution" for 2 consecutive years.

IDEA Cellular has been recognized as the 'Most Customer Responsive Company' in the Telecom sector, at the prestigious Avaya GlobalConnect Customer Responsiveness Awards 2010.

16

1.10 Bharat Sanchar Nigam Limited (BSNL)

Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a state-owned telecommunication enterprise in India. BSNL is the Third largest cellular service provider, with over 66.88 million customers as of June 2010 and the largest land line telephone provider in India. BSNL further plans to increase its customer base to 160 Million by March, 2014.

BSNL is India's oldest and largest Communication Service Provider (CSP)

It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on June 30, 2010 BSNL commanded a customer base of 27.45 million Wireline, 72.69 million Wireline subscribers. BSNL's earnings for the Financial Year ending March 31, 2009 stood at INR 397.15b (US$7.03 billion) with net profit of INR 78.06b (US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion.

BSNL provides almost every telecom service in India. Following are the main telecom services provided by BSNL:

-Universal Telecom Services

-Cellular Mobile Phone Services

-WLL-CDMA Telephone Services

-Internet

17

-Intelligent Network (IN)- BSNL provides IN services offers value-added services, such as Free Phone Service (FPH), India Telephone Card (Prepaid card), Account Card Calling (ACC), Virtual Private Network (VPN), Tele-voting, Premium Rae Service (PRM), Universal Access Number (UAN) and more.

-3G: BSNL offers the '3G' or the'3rd Generation' services which includes facilities like video calling etc.

-IPTV: BSNL also offers the 'Internet Protocol Television' facility which enables us to watch television through internet.

-FTTH: Fibre To The Home facility that offers a higher bandwidth for data transfer.This idea was proposed on post-December 2009.

-Helpdesk: BSNL's Helpdesk provide help desk support to their customers for their services.

1.11 Reliance Communications

Reliance Communications formerly known as Reliance Infocomm, along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL).Reliance Communications Limited founded by the late Shri Dhirubhai H Ambani (1932–2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group.

The Reliance Anil Dhirubhai Ambani Group currently has a net worth in excess of Rs. 64,000 crore (US$ 13.6 billion), cash flows of Rs. 13,000 crore (US$ 2.8 billion), net profit of Rs. 8,400 crore (US$ 1.8 billion).The Equity Shares of RCOM are listed on Bombay Stock Exchange Limited and National Stock Exchange Limited.

Reliance Communications is India's truly integrated telecommunications service provider. The Company has a customer base of 105 million including over 2.5 million individual

18

overseas retail customers.It ranks among the Top 5 Telecom companies in the world by number of customers in a single country. Reliance Communications corporate clientele includes 2,100 Indian and multinational corporations, and over 800 global, regional and domestic carriers.

19

CHAPTER 2

RESEARCH METHODOLOGY

20

2.1 The Objectives & Rationale of/for the Project

To study the customer satisfaction towards -

i) Pepsi & Thums up ii) Mobile Phone Service Operators – Vodafone Essar, Idea

Cellular , Reliance Communications & BSNL

And to find out which one is more favourable by the consumer/customer by coducting a comparative analysis.

A detailed analysis on why a particular company is preferred over the other, the factors affecting the consumer preference, and finally the conclusion , is to be found out on the basis of the data collected.

2.2 Limitations of the Project

The following were the limitations / problems faced while conducting this study –

- Data collected apart from the surveys is secondary and not primary.

- Many people were not maintaining proper knowledge of the mobile services they use or even about the soft drink they consume , so they were unable to provide proper information.

- The study had time constraints and is limited to a very small area.

21

2.3 Sources of Data Collection

i) Primary Data – Primary Data was collected by preparing questionnaires and people of different ages were randomly requested to fill them up.

ii) Secondary Data – Secondary Data was collected from various sites which are available on Internet.

22

26

CHAPTER 3

DATA ANALYSIS & FINDINGS

27

Under this section, the data that was collected on the basis of the 2 questionnaires prepared would be analyzed , so that we can reach a conclusion as to which of the products chosen is more favourable to the customers/consumers

3.1 Analysis of Questionnaire 1 (Thums up & Pepsi)

1) Total number of surveys taken– 30

Male Female13 17

Age

Below 13 13-18 18-24 24-30 Above 30- 5 19 3 3

2) Which aerated drink do you prefer?

Particulars No. Of Respondents PercentagePepsi 7 23.33%

Thums Up 12 40%Coke 5 16.67%Other 6 20%

3) While purchasing , which factor normally infulences your purchasing decision?

Particulars No. Of RespondentsBrand Name 6Availabilty 3

Health Consciousness 4Satisfaction from previous

purchase2

Taste 23

4) Does Adevertising provoke you?

Yes No30 % 70 %

5) Keeping in mind all the questions that you have answered, which would you finally prefer between Pepsi & Thums Up ?

PEPSI THUMS UP

M F M F

23.33% 20% 20% 36.67%

3.2 Thus, from the above mentioned details and the data gathered from the surveys, the following conclusions have been reached-- There isnt a huge difference between percentage of people

preferring either of the drink. Though many prefer Thums Up over Pepsi, even though Pepsi is better than Thums Up in

terms of advertisement, packaging , coloring , and promotion.- Thums Up is normally preferred simply because it has a

stonger taste than Pepsi which is relatively sweeter. Thus depending mostly upon one’s taste, a customer / consumer decides which one to choose between Pepsi / Thums up (atleast the people who helped me with the survey).

29

3.3 Analysis of Questionnaire 2 (Mobile Phone Service Operators )

1) Total number of surveys – 26

Male Female10 16

3) Which of the following services do you use?

Pre-paid Post-paid21 5

4) Which mobile service operator’s service do you use ?

Vodafone Airtel Reliance BSNL Idea73.07% 15.38% - 3.84% 11.53%

(Over here the total goes beyond 100 % because there are some people who use more than two mobile service operators)

5)

Services BSNL Reliance Idea VodafoneNetwork 7.69% 11.53% 57.69%SMS rates/schemes

15.38% 3.84% 69.23%

New schemes and offers

7.69% 7.69% 57.69%

Customer Care

15.38% 57.69%

Recharge Outlets

7.69% 3.84% 7.69% 53.84%

Call Rates 3.84% 26.92% 3.84% 50%Value Added Services

7.69% 11.53% 50%

(Over here, % means that these many percent of people believe that a particular service is better provided by the MPS operator , so the total needn’t be 100% )

3.4 Conclusion on the basis of the data collected and analyzed

- It is clearly seen from the above mentioned details that majority of people prefer VODAFONE ESSAR .

- As most of the people who helped with this survey by filling up the questionnaires are around 18 years old, Vodafone is more favourable because of its SMS schemes and offers which are attractive to the youngsters.

- There are even people (mainly elder ones)who actually don’t have any idea about the services provided by their Mobile Phone Service Operator .

- Vodafone is undoubtedly a favourite amongst the people whether it may be in terms of network , SMS rates/schemes, new schemes and offers , customer care, recharge outlets , call rates or value added services.

31

CHAPTER 4

CONCLUSION

32

4.1 Pepsi & Thums Up

- Aerated Drinks are consumed especially on the basis of their tastes. As we all know cola drinks are mostly preferred by people. But under them too there are different kinds of drinks. Pepsi & Thums Up are perfect examples of this.

- Pepsi has got a relatively sweeter taste while Thums Up is stronger in it. It is a general belief that Pepsi is preferred by children under 16 while Thums Up is a more macho or a manly drink. Whether this is true or not depends upon an individual’s perception.

-All that can be said is people who prefer sweeter drinks go for Pepsi and the ones who want a stronger betle nut taste go for Thums up.

v/s

33

4.2 Mobile Phone Service Operators

- The operators that were selected for this project were BSNL, Idea Cellular , Reliance & Vodafone Essar. On the basis of the survey conducted it has been undoubtedly clear that people of Ahmedbad especially the youngsters prefer VODAFONE.

-Even though AIRTEL is the largest cellular service provider in India and Vodafone the second largest , more and more people are now opting for Vodafone simply because it ranks first when it comes to all kinds to services as a package and has a high customer satisfaction as well. Atleast the people who helped me with the survey thought so.

34

BIBLIOGRAPHY-http://www.agriculture-industry-india.com/agricultural-commodities/soft-drinks.html

-http://business.mapsofindia.com/india-industry/telecom.html

- www.wikipedia.org

-Some randomly selected projects were also referred for help purposes.

- Lastly the primary data was collected on the basis of the questionnaires prepared as a part of the survey.

35