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CHAPTER – IV
INTERMEDIARIES IN THE CELL PHONE SERVICES
4.1 INTRODUCTION
In this chapter an attempt is made to study the intermediaries engaged in cell
phone services in Kanyakumari district of Tamil Nadu. The study covers cell phone
dealers, sim card and recharge/top up card dealers and retailers. The owners of shops
dealing in the above activities have been contacted and requisite information has been
collected. Nokia alone has dealership in the district and the rest of the handset
companies are planning to start their dealership in order to compete with Nokia. The
study has been made with the cell phone dealers who are dealing in different handset
brands. The informants have been selected based on stratified random sample. A total
of 660 sample shop owners spread in the four taluks of Kanyakumari district have
been covered under the study.
The study covers aspects such as age, sex, marital status, educational
qualification, income earned per month etc., so as to reflect the socio-economic status
of the shop owners dealing in cell phone industry. Direct enquiry was conducted by
the researcher using the structured questionnaires.
The data collected were tabulated and analysed and the following findings
are arrived at.
I CELL PHONE DEALERS
Besides the above, the study focuses its attention on the details of the cell
phones and the promotional strategies developed by companies to increase sales. A
total of 120 cell phone shops have been covered and information has been collected.
The study includes the social background of the cell phone dealers and the preference
of the customers as per dealers‘ perception.
4.2 GENDER OF CELL PHONE DEALERS
The gender of the dealers is enquired into, to understand which gender
constitutes the majority in having the mobile handset dealership. Interests of the male
differ from those of female. Female may not have interest in all the areas the male
likes to work. Table 4.1 describes the interest of males and females in doing handset
business.
Table 4.1
Gender of Cell phone Dealers
Gender No. of Dealers Per cent
Male 86 72
Female 34 28
Total 120 100
Source: Field Survey
Out of 120 shop owners covered by the study, 72 per cent are males and the
rest females. The study reveals that the industry is male-dominated. It could be
inferred that in the male-dominated society, it is quite natural that men dominate all
industries. The cell phone industry is no exception to this and shows males
constituting a greater proportion in setting up cell phone dealership.
4.3 AGE GROUP OF THE CELL PHONE DEALERS
A frequency distribution of three age groups of intermediaries is given. The
first one covers the youths belonging to 18 to 25 years; the second one belongs to
middle age of 26 to 40 years; the third one belongs to upper age group of 41 to 60
years. Such distribution is made keeping in mind the enthusiasm normally evinced by
the youth, the responsibility always shouldered by the middle aged and the restful
resilience shown by the upper age group with happy and contended mind.
Table 4.2
Age Group of Cell phone Dealers
Age No. of Dealers Percent
18 to 25 20 17
26 to 40 62 51
41 to 60 38 32
Total 120 100
Source: Field Survey
Table 4.2 shows that 17 per cent of dealers belong to the first category, one out
of every two traders contacted belongs to the second category and one out of every
three traders belongs to the upper age category. It is derived that nearly half of mobile
handset dealers are middle aged and the rest belong to the youth and upper age group.
4.4 MARITAL STATUS OF THE CELL PHONE DEALERS
Marital status exerts enormous influence on the attitudes and approaches of
traders in their chosen business enterprises, where as bachelors and spinsters are a
little unrestrained in their endeavours to reap profits in the business they choose.
Married people would think twice using the business acumen to embark upon
innovative approaches to do their business.
Table 4.3
Marital Status of Cell phone Dealers
Marital Status No. of Dealers
Total Per cent Male Female
Single 12 - 12 10
Married 72 36 108 90
Total 84 36 120 100
Source: Field Survey
Table 4.3 shows that majority of the traders belong to the married category;
only 10 per cent remains unmarried at the time of the survey. They are, therefore, able
to keep pace with the rapid proliferation of the new trade in Kanyakumari district.
4.5 EDUCATIONAL BACKGROUND OF THE CELL PHONE DEALERS
In the educationally forward district of Kanyakumari, the survey brings to light
how new avenues of opportunities are open to the literate to become self-employed.
Thanks to the introduction of cell phone services, a lot of people have found a new
attractive business to make benefits. Business trait is developed in a person if he is
educated to some extent to manage the circumstances encountered in business
everyday, to judge situations appropriately as they arise and to take suitable course of
action whenever necessary.
Table 4.4
Educational Background of Cell phone Dealers
Educational
Qualification
No. of Dealers Total Per cent
Male Female
Higher Secondary 04 01 06 05
Diploma 16 06 22 18
Under Graduation 45 46 92 77
Total 84 36 120 100
Source: Field Survey
From the table, it is inferred that 77 per cent of dealers are undergraduates, 18
per cent of them are diploma holders and 6 per cent of them have studied upto higher
secondary level. The survey reveals that all dealers are educated to do simple
arithmetic and accounting and have an agreeable level of communication talent. This
is evident from the qualification they possess.
4.6 OCCUPATION OF THE PARENTS OF CELL PHONE DEALERS
Occupation of the parents of cell phone dealers has been studied to know the
family background of the dealers. Family background plays a major role while
selecting a profession. Family support through guidance or assistance to start or run a
business, by providing fund or any other alternative assistance to develop the business,
is required. Table below describes this fact.
Table 4.5
Occupation of the Parents of Cell phone Dealers
Parent’s Occupation Male Female Total Per cent
Teacher 12 04 16 14
Business 15 08 23 19
Agriculturist 26 08 34 28
Govt. Employee 10 02 12 10
Pvt. Employee 11 05 16 13
Others 12 07 19 16
Total 86 34 120 100
Source: Field Survey
From the table, it is inferred that 14 per cent of the dealers‘ parents are
teachers, 19 per cent from business background, and 28 per cent of the parents are
agriculturists and only 10 per cent of parents are government employees. It is made
clear that Kanyakumari district is well known for its climate and fertility of the soil
which enable high level agricultural growth and harvest, and therefore majority of the
parents have agriculture as occupation.
4.7 OWNERSHIP OF THE SHOPS USED BY THE CELL PHONE DEALERS
The cell phone dealers may do their business in their own shops or in rented
shops taken for lease. Since Kanyakumari district is developing in business, people
from other districts come and start their businesses and earn high profits. Due to this,
the demand for shops is high and also the rent collected is exorbitant. The value of
land is also increasing day by day and it is not possible to get a land for business near
major business areas. Under the circumstances, it is essential to know in what sort of
shops the dealers are doing their business. Table 4.6 depicts the nature of shops in
relation to ownership or non-ownership.
Table 4.6
Ownership of the Shops Used By the Cell Phone Dealers
Nature
of
Shop
No. of Dealers
Total Per cent Kalkulam Vilavancode Agasteeswaram Thovalai
Own 04 08 02 02 16 13
Rent 23 18 25 26 92 77
Lease 03 04 03 02 12 10
Total 30 30 30 30 120 100
Source: Primary Data
From the table, it is inferred that 13 per cent of the dealers have their own
shops, 77 per cent of the cell phone shops are rented ones and only 10 per cent of the
shops are leased. Therefore, it is clearly identified that most of the cell phone dealers
are in rented shops. Due to the availability of plenty of shops for rent as well as the
cheap cost incurred compared to the other two factors, dealers prefer rented shops and
also the rented shops are readily available for their business.
4.8 AVERAGE INCOME OF THE CELL PHONE DEALERS
Profit motive propels a person to sustain interest in any business, be it small
or big. With a large clientele already existing and potential customers waiting to be
absorbed, the cell phone business has become a good money spinner in Kanyakumari
district. Dealers of cell phone trade, with dexterity, tame the situation to their favour
and there is a steady flow of income for those who are dedicated to this trade. Hence,
it is felt necessary to study the average income per month earned by the mobile
dealers. Table 4.7 highlights the average income per month earned by cell phone
dealers.
Table 4.7
Average Income per month of the Cell phone Dealers
Source: Field Survey
Table 4.7 presents income earned by 120 mobile handset shop owners
contacted for the survey. Five per cent of the respondents earn a monthly income of
less than Rs.5000. Nearly two-third of the dealers earn a monthly income exceeding
Rs.10,000 and reaching up to Rs.20,000; only 7 per cent alone cross Rs.20,001 per
month upto Rs.25,000. The expenditure apart, what is left with the shop owners help
them to augment the sales of handsets and sim cards and continue to sustain the trade,
at the time of survey.
4.9 YEARS OF EXPERIENCE IN RUNNING THE CELL PHONE BUSINESS
Experience, especially, positive experience tends to make the traders change
their behaviour, attitudes and involvement in the trade they undertake. Going by this
yardstick, an attempt has been made to present the years of experience the traders have
undergone in their chosen field of mobile handsets distribution to clients. The
Income per month
(in Rupees)
No. of Dealers Total Per cent
Male Female
Below 5000 04 02 06 05
5,000 to 10,000 52 24 76 63
11,000 to 20,000 14 16 30 25
21,000 to 25,000 05 03 08 07
Total 86 34 120 100
proliferation of trading activities in mobile handset is of recent origin although two
decades have passed since it was launched modestly in the year 1985. Hence, the
study has covered the duration of experience gained by the traders to minimum of 5
years and above. Table 4.8 presents this.
Table 4.8
Years of Experience in Running the Cell phone Business
Years of experience No. of dealers Per cent
1 year 08 07
2 years 07 06
3 years 78 65
4 years 11 09
5 years 06 05
Above 5 years 10 08
Total 120 100
Source: Field Survey
Table 4.8 highlights the fact that 65 per cent of dealers have three year
experience, when the sales promotion of mobile handsets was at its highest. 95 per
cent of the dealers had gained agreeable level of experience and they have remained in
the business for more than three years and the trade has sustained them. However, in
the recent years, as competition is stiff, only 15 per cent of the traders have entered the
business with experience limited to two years and below. The future is still open to
new traders who would have their shops established in hitherto unexplored areas as
demand for mobile handsets is increasing ever.
4.10 AVERAGE CAPITAL EMPLOYED FOR THE CELL PHONE SHOP
This aspect has been studied in order to find out how much investment was
made by the various cell phone dealers for running their business. When increased
investment is made, it shows that the business yields a profitable return and that
enables the traders to involve themselves fully in the business at present and in future
also.
Table 4.9
Average Capital Employed for the Cell phone Shop
Particulars Amount (Rs.) Amount(Rs.) Per cent Per cent
Fixed Assets
Land & Building
Furniture
OtherSpecific Assets
Deposits
Air conditioners
Electrical appliances
Display frames
Total Fixed Assets
Add: Current Assets
Stock of Cell
Phones
Accessories:
Battery
Charger
Cell Panel
Head Phone
Memory cards
Handset Board
Cellphone Covers
Debtors:
Cash:
Total Current Assets
Total Assets
Less: Current Liabilities
Bank O/D
Creditors
Short Term loans
[ C.A – C.L.]
Working Capital
[F.A + W.C]
30,000
20,000
10,000
20,000
2,00,000
10,000
80,000
44.58
2.23
17.83
25.78
11.14
22.29
64.63
59.21
1,00,000
2,880
2,330
2,280
2,370
1,120
3,280
1,400
2,90,000
1,15,660
50,000
1,00,000
25,000
60,000
22,000
2,65,660
5,55,660
1,07,000
1,58,660
123.85
23.85
Capital employed 4,48,660 100
Source: Primary Data
From the table, it is inferred that among the total capital employed, the cost of
land and building constitute the greatest portion and it accounts for 44.58 per cent of
the capital employed. In the other fixed assets, namely, furniture constitutes 2.23 per
cent; other specific assets, namely, air conditioners, electrical appliances and display
frames account for 17.83 per cent.
The proportion of total current assets constitutes 59.21 per cent of the total
capital employed. Current liabilities are worked out to be 23.85 per cent of the total
capital employed. It is derived that the cell phone dealers run their business by
borrowing from banks and other creditors. This indicates that the cell phone dealers
are suffering from lack of finance on a long-term basis.
4.11 AVERAGE SALES FREQUENCY OF CELL PHONES PER MONTH
Sales frequency of cell phones per month was studied to know which cell
phone brand captures the mind of customers among the various players in the market
and the various aspects attracting the customers to buy the mobile. And also it
provides a guideline to the dealers to stock the mobiles in order to meet the demand of
the customers immediately, without any delay.
Table 4.10
Average Cell phone Sales Frequency Per Month
Sales Brand of cell phone
Total Frequency
per month 1-10
Per
cent
10-
20
Per
cent
20-
30
Per
cent
30-
40
Per
cent
40-
50
Per
cent
Abov
e 50
Per
cent
Nokia 26 21.7 19 15.8 30 25 10 8.3 30 25 05 4.2 120
Sony
Ericson 12 66.7 03 16.7 03 16.7 - - - - - - 18
Samsung 15 68.2 02 9.1 05 22.7 - - - - - - 22
Seimens 13 76.5 04 23.5 - - - - - - - - 17
LG 8 53.3 05 33.3 02 13.3 - - - - - - 15
Motorola 7 53.8 05 38.5 01 7.7 - - - - - - 13
Reliance 2 0
56.6 08 21.1 10 26.3 - - - - - - 38
Tata
Indicom
10 52.6 04 21.1 05 26.3 - - - - - - 19
Source: Primary Data
From the table, it is inferred that the 26 Nokia mobile phones are sold on an
average of one to ten per month. Similarly the other brands are also sold 12, 15, 13, 8,
7, and 10 respectively for the Sony Ericson, Samsung, Siemens, LG, Motorola,
Reliance and Tata Indicom. On an average, Nokia mobile has the largest sale per
month. Due to its brand familiarity and all other attractive features, it has reached the
customers successfully. Motorola was initially successful among the customers but
later the other brands entered and it could not withstand the competition and lost its
market.
4.12. AVERAGE SALE OF CELL PHONES PER MONTH IN
DIFFERENT TALUKS
People‘s tastes and preferences vary from place to place. The four taluks
taken for the study consist of different types of people including high income level to
low income level people. Based on the availability, income, taste and preference, the
cell phone sales vary from taluk to taluk. The average sale of cell phone per month in
different taluks has been studied in order to know which taluk has the highest
percentage of cell phones of different brands sold.
Table No. 4.11
Average Cell phone Sales per month in Different Taluks
Taluk
Brand
Vilav
anco
de
Per
cent Kalkulam
Per
cent
Agastees
waram
Per
cent Thovalai
Per
cent Total
Nokia 29 24.2 31 25.8 28 23.3 30 25 120
Sony
Ericson 05 27.8 04 22.2 07 38.9 03 16.7 18
Samsung 06 27.3 03 13.6 08 36.4 04 18.2 22
Seimens 04 23.5 06 35.3 04 23.5 03 17.6 17
LG 04 26.7 03 20 05 33.3 03 20 15
Motorola 03 23.1 02 15.4 02 15.4 06 46.2 13
Reliance 07 18.4 10 26.3 12 31.6 09 23.7 38
Tata
Indicom 06 31.6 03 15.8 08 42.1 02 10.5 19
Source: Primary Data
From the table, it is inferred that Agasteeswaram, being town area has a sale
percentage of about 23 per cent for Nokia and Sony Ericson has around 40 per cent.
Following Agasteeswaram, Kalkulam stands second in the mobile sales and services;
Thovalai stands third and Vilavancode stands last in the district in the mobile sales.
Being small in area and less developed and having towns few in number, Vilavancode
stands last in the mobile sales.
4.13 DISTRIBUTION SHOWING THE RANK OF AVERAGE CELL
PHONE SALES PER MONTH
Various brands and models of mobile handsets are available in the market
with prices ranging from very high amounts to cheap and affordable rates. Tough
competition exists among the cell phone brands. The perception of the ranks held by
the leading brands enables the traders to stock the mobile handsets in consonance with
the preference of the customers. They stock the varieties and brands for ready sales to
customers. Such a feedback helps the manufacturers to establish their manufacturing
units in the state where the over-all preference for their products is at the highest. This
is one of the reasons why Nokia established its manufacturing unit in Tamil Nadu.
From very high prices to affordable low prices, varieties of cell phones are displayed
in the market. Assessing the inclination of the customers in their area and their
affordability, some wise decisions are taken by the shop owners.
Table 4.12
Distribution Showing the Rank of Average Cell phone Sales per Month
Brand 5 4 3 2 1 Weighted
Total
Weighted
Average Rank
Nokia 86 32 2 0 0 564 4.7 I
Sony 74 21 16 9 0 520 4.3 III
Samsung 80 23 12 5 0 538 4.5 II
Seimens 34 24 16 18 28 414 3.5 V
Motorola 12 0 56 20 32 300 2.5 VI
LG 58 32 10 14 06 482 4.02 IV
Source: Primary Data
From the table, it is seen that Nokia mobiles are mostly preferred. Compared
to other company products, Nokia mobile claims patronage from larger number of
mobile handset users. The descending order of preference as revealed by the table
indicates that Samsung claims the second place followed by Sony in the third place.
The fourth place goes to LG mobiles and in the run up of clientele‘s preference,
Siemens has the fifth place and Motorola gets a distant sixth place. Easy availability,
varieties, the brand names and continued publicity have captured the mind of the
customers which is reflected in their preference. Nokia has all these in full measure
and no doubt it claims the first place.
4.14 REASONS FOR PREFERRING A PARTICULAR BRAND
There are various reasons existing among the customers to select a particular
handset. The table below shows the reasons for selecting a particular handset by the
customers. From the point of view of dealers, that which meets the tastes of the
customers, which are governed by captivating models, their popularity, their quality
and their ready availability is preferred by the customers. Captivating models are those
which are sleek, handy compact and having all features desired by a cell phone
consumer. As possessing a mobile handset gives an illusory eminence to youngsters,
they prefer popular models to unpopular ones, even though the latter do the function
much better than the former. The study has brought to light these facts. The attractive
models lure the customers and claim their first choice.
Table 4.13
Reasons for Asking for a Particular Brand
Attributes 5 4 3 2 1 Weighted
Total
Weighted
Average Rank
More Popular 92 09 04 03 02 516 4.3 II
Influence 36 29 16 13 18 388 3.2 V
Fits with
personality 16 09 17 12 72 245 2.0 VI
Availability 08 10 06 15 81 209 1.7 VIII
Promotional
Activities 06 10 12 22 70 220 1.8 VII
Price 14 12 83 06 15 394 3.3 IV
Quality 78 12 14 13 03 509 4.2 III
Attractive Models 81 11 21 03 04 522 4.4 I
Source: Primary Data
From the table, it is inferred that captivating models are those which are sleek,
handy compact and have all features desired by a cell phone consumer. The study has
brought to light the above fact. Popularity of the cell phone finds acceptance as a
secondary preference. Thirdly, the customers rely more on the quality of the handsets
on sales. They are inclined to own any cell phone when their earlier choices are
incapable of being fulfilled. They have no other way except resorting to what is
available in the market at the time of their purchase.
4.15 YOUNGSTERS’ PREFERENCE FOR TYPES OF CELL PHONE
Customers are particular about the function of each handset that they are lured
to buy. But their choice of the handsets is governed by the types, some of which are
ordinary, colour, camera attached, and having provision for video camera operation.
This choice is in keeping with the fashion and youngsters are crazy to have these to
gloat in their possession. This is presented in the Table 4.14.
Table 4.14
Youngsters’ Preference for Types of Mobile
Source: Primary Data
From the table, it is inferred that 30 per cent of the customers go for
handsets with camera and video camera attachment (40 per cent). Youngsters do not
bother about the cost. They want to display their possession during this stage of their
life.
4.16 FREQUENCY OF CELL PHONES CHANGED BY CUSTOMERS
Customers‘ taste and preference change from time to time. As new models are
introduced, customers desire to substitute the old ones for the new models available in
Type of mobile No. of respondents Per cent
Ordinary 12 10
Colour 24 20
Camera 36 30
Video Camera 48 40
Total 120 100
the market. This study reveals the fact about the frequency of mobile handset
changes.
Table 4.15
Frequency of Cell phones changed by Customers
Frequency No. of respondents Per cent
Below 6 months 23 19
6 months – 1 year 36 30
2 years to 3 years 54 45
Above 3 year 07 06
Total 120 100
Source: Primary Data
From table 4.15, it is seen that most of the customers switch over to new
fashionable handsets within two to three years they come to possess a handset. Thirty
per cent are inclined to effect change of handsets within six months to one year. Only
six per cent of the users prefer to make changes after waiting for about three years. A
number of reasons could be adduced for such a switch over. The most plausible
reason has been that being dissatisfied with the one they hold, they go in for another
when it is made with latest technology and priced at affordable rates. A reading of the
above table unmistakably reveals this attitude on the part of customers.
4.17 CELL PHONES PREFERRED BY LADIES
The taste and preference of ladies with regard to possessing mobile handsets
are at variance with males. They appear to be quality as well as cost conscious.
However, this has not restrained them from succumbing to fall prey to own new and
fashionable handsets. The study brings to light the brands they are enamoured to
possess.
Table 4.16
Cell phones Preferred by Ladies
Brand No. of respondents Per cent
Nokia 42 35
LG 33 28
Sony 12 10
Motorola 14 12
Samsung 10 08
Siemens 09 07
Total 120 100
Source: Primary Data
From the table, it is clear that 35 per cent of the ladies prefer Nokia handsets,
28 per cent of them are convinced to go in for LG mobiles while only seven per cent
deem it fit to have Siemens handset. Most of the ladies are fantasized to select Nokia
as it offers different models at cheaper rates compared with other brands in the market.
4.18 ASPECTS PREFERRED BY LADIES IN THE CELL PHONE
A further analysis of ladies‘ preference for a particular brand of handsets
reveals that the size, the brand, the price, the warranty offered and the availability of
after sale service and the captivating nature or attractiveness of the handsets have
exerted much influence on purchase decisions. This is presented in Table 4.17.
Table 4.17
Aspects Preferred by Ladies in the Cell phone
Aspects No. of respondents Per cent
Compact 26 21
Different features 12 10
Brand Name 11 09
Price 32 27
Warranty 13 11
After Sale Service 12 10
Attractiveness 14 12
Total 120 100
Source: Primary Data
From the table it is quite evident that 21 per cent of ladies select compact size
handsets. Eleven per cent considers warranty; 10 per cent of the ladies are particular
about the ready availability of after sales service. Twelve per cent however lay stress
on the attractiveness of handsets. As ladies are cost conscious, they do not want to
spend on costly handsets. After all, according to them, any handset at whichever price
available in the market is capable of meeting the basic needs of contact and quick
communication with others.
4.19 PRICE RANGE OF CELL PHONES PREFERRED BY LADIES
As already stated, ladies are known to be cost and beauty conscious. They
think twice before spending too much for the mobile handset. An attempt has been
made to identify how much amount is spent by the ladies for the purchase of mobile
phones. This is presented in the table below.
Table 4.18
Price Range of Cell phones Preferred by ladies
Price No. of respondents Per cent
Below 4000 65 54
4000 – 6000 32 27
6000 – 8000 13 11
Above 8000 10 08
Total 120 100
Source: Primary Data
From the table, it can be gleaned that 54 per cent of ladies spend Rs.4000 and
below, 27 per cent of the ladies spend between Rs.4000 and Rs.6000, 11 per cent of
ladies spend above Rs.6000 and up to Rs.8000 and only eight per cent of the ladies
spend above Rs.8000 for the purchase of cell phones. The study reveals that ladies
are, no doubt, highly cost conscious. They do not want to spend more money for items
like handsets. They are aware that any mobile handset irrespective of the price
difference meets their requirement of easy contact and quick communication with the
dear and near and the others.
4.20. RANKING OF ATTRIBUTES URGING THE PILING OF STOCK
OF CELL PHONES
Dealers must keep enough stock of goods to meet the demand of their
clienteles. If there is a mismatch between demand and supply, no business can be
sustained with the tempo needed to gain advantage. To carry out the business,
therefore, an uninterrupted supply of handsets is indispensable. Dealers need to pile
up stocks to meet the anticipated demand. The factors that influences piling of stock
are enumerated as per the version of the dealers and the same are presented in the table
4.19.
Table 4.19
Ranking of Attributes urging the Piling of Stock of Cell phones
Attributes 5 4 3 2 1 Weighted
Total
Weighted
Average
Rank
Company
Support 36 12 21 23 28 365 3 VI
Brand Image 41 13 12 21 33 368 3.1 V
Customer Pull 83 12 11 06 08 516 4.3 II
Promotional
Schemes 76 21 14 05 04 520 4.33 I
Price 54 11 22 24 09 437 3.6 III
Quality 35 28 23 22 12 412 3.4 IV
Source: Primary Data
From the table, it is understood that the number of promotional schemes
introduced by the manufacturing companies have an impact on piling up of the stock
of handsets. Handsets that command highest demand are kept in bulk by the traders.
The quantum of stock has a bearing on the stock held by the traders. The quality of
the handsets encourages the traders to increase the stock of these handsets.
Sales promotional schemes enable the dealers to stock handsets at an
advantage. The customers‘ choice has also influenced the piling of the stock to a
greater extent.
II SIM CARD DEALERS
There are number of service providers available in the market serving as
agents for Aircel, Airtel, BSNL, Vodafone, Tata Indicom, and Reliance. From among
the rich service providers, a sample of 120 have been selected for study in detail from
the four taluks of Kanyakumari District. The details of the study include the social
background of the cell phone service providers, their perceptions to meet the
requirements of customers and the like.
4.21 GENDER OF SIM CARD DEALERS
Interests of the males differ from those of females. Females appear to
be shying away from this business as their interests lie elsewhere. Table 4.20 describes
the interests of males and females in the sim and recharge business.
Table 4.20
Gender of Sim Card Dealers
Gender No. of Dealers Per cent
Male 92 77
Female 28 23
Total 120 100
Source: Field Survey
Table 4.20 shows that among the sim card dealers, males constitute the major
proportion of 77 per cent and the females constitute only 23 per cent. It is clear from
the study that the males are highly interested in cell phone service providing business.
4.22 AGE OF THE SIM CARD DEALERS
The reaction and response of persons of different age groups are not uniform.
They act differently. The spirit and enthusiasm of youngsters may not be there in the
aged where as the aged have experience and wisdom to meet any eventualities. The
youngsters, for want of experiences may buckle in such circumstances. The study
focuses its attention on this aspect.
Table 4.21
Age of the Sim card Dealers
Source:
Field Survey
From the table, it is inferred that most of the dealers belong to the middle age
group of 41- 60. A person reaches this stage after passing through adult stage.
Persons belonging to this category are rich with experience, knowledge and expertise
to carry out the business in an orderly manner.
4.23 MARITAL STATUS OF THE SIM CARD DEALERS
The marital status of the dealers has been studied in order to find whether the
respondents who are involved in the mobile service business are responsible married
ones or the care free unmarried bachelors. Table 4.22 presents the same.
Age No. of Dealers Percent
18 to 25 06 05
26 to 40 38 32
41 to 60 62 51
Above 60 14 12
Total 120 100
Table 4.22
Marital Status of the Sim card Dealers
Marital status No. of Dealers Per cent
Single 59 49
Married 61 51
Total 120 100
Source: Field Survey
Table 4.22 shows that majority of the respondents are married; 61 respondents
who constitute the 51 percent are married and 59 respondents who constitute 49 per
cent are single.
4.24 EDUCATIONAL QUALIFICATION OF SIM CARD DEALERS
Literacy level of dealers was enquired into and is presented in Table 4.23.
Education influences not only perceptions of a person but also the knowledge towards
any business. This is analysed in details in the table below.
Table 4.23
Educational Qualification of Sim card Dealers
Educational qualification No. of service provider Per cent
SSLC 12 10
Higher secondary 24 20
Under graduation 68 57
Post graduation 16 13
Total 120 100
Source: Field Survey
Table 4.23 explains that the larger proportion of sim card dealers‘ literacy
level is limited to graduation (57 per cent). About 13 per cent are post graduates and
twenty percent of them have reached only higher upto secondary level.
4.25 INCOME PER MONTH OF THE SIM CARD DEALERS
Income is an essential attribute that plays a major role in the life of every
person. A person can not undertake a work or business which does not give him
reasonable income. Hence, an attempt has been made to study the income of the
dealers in order to find out how much income they earn from dealing in mobile
connections in a month. Table 4.24 depicts the income differential.
Table 4.24
Income per Month of the Sim card Dealers
Source: Field Survey
From Table 4.24, it is inferred that 33 per cent of the dealers earn below Rs.
5000, 57 per cent earns between Rs. 5,000 and 10,000, 10 per cent between Rs.11,000
and 20,000, the majority of income earned by the dealers is between Rs.5,000 and
10,000
4.26 YEARS OF EXPERIENCE IN DOING SIM CARD BUSINESS
Years of experience of dealers have much to promote sales. If greater
proportion of experienced dealers is found in the business, it indicates that cell phone
dealership provides reasonable returns and therefore it retains the dealers in dealership
of mobile phones and connections. Therefore, the years of experience of cell phone
dealers are enquired into and presented in table 4.25.
Income per month
(in Rupees)
No. of Dealers Per cent
Below 5000 40 33
5,000 to 10,000 68 57
11,000 to 20,000 12 10
Total 120 100
Table 4.25
Years of Experience in Doing Sim card Business
Years of experience No. of Dealers Per cent
1 year 10 08
2 years 12 10
3 years 34 28
4 years 44 37
5 years 14 12
Above 5 years 06 05
Total 120 100
Source: Field Survey
Table 4.25 highlights the fact that as high as 28 per cent of dealers have
experience for three years. Cell phone dealers with one year experience account for 08
per cent of total dealers. It is obvious that mobile service providing business attracts
new entrants while at the same time retaining the existing dealers also.
4.27 TOTAL INVESTMENT FOR THE SHOP
This aspect has been studied in order to find out how much investment has
been made by the various cell phone dealers for running this business. Higher
investment returns a higher profit which propels more people to come forward to do
this business as perfect competition prevails in the market.
Table 4.26
Total Investment for the Shop
Investment (in Rs.) No. of respondents Per cent
Below 1 Lakh 34 28
1 Lakh – 3 Lakhs 68 57
3 Lakhs – 5 Lakhs 12 10
Above 5 Lakhs 06 05
Total 120 100
Source: Primary Data
From the table, it is inferred that 28 per cent dealers do their business with
below Rs.1 lakh investment, 57 per cent of dealers invest one lakh to 3 lakh rupees
and only 5 per cent of dealers do business with above Rs.5 lakhs.
4.28 TYPES OF CONNECTIONS MOSTLY PREFERRED BY CUSTOMERS
There are two types of mobile service offered by service providers. They are prepaid
and postpaid connections. A Study has been done to analyze the type of connections highly
preferred by the customers from the point of view of dealers.
Table 4.27
Types of Connection Mostly Preferred by Customers
Brand No. of respondents Per cent
Prepaid 96 80
Postpaid 24 20
Total 120 100
Source: Primary Data
From the table, it is found that the majority of the customers constituting 80
per cent prefer prepaid service and only 20 per cent of the customers prefer postpaid
connection. This shows that prepaid connection contains some facilities which are
absent in postpaid connection.
4.29 SIM CARD DEALERS’ AVAILABILTY IN DIFFERENT TALUKS
Based on the customer preference and income of the people, dealers emerge day by
day. The different taluks of Kanyakumari District are different in size and population.
An attempt is made here to study the taluks which possess highest number of different
sim card dealers. Table 4.28 describes it.
Table No. 4.28
Sim card Dealers Availability in Different Taluks
No. of Sim card Dealers
Taluk
Brand
Vilav
anco
de
Per
cent Kalkulam
Per
cent
Agastees
waram
Per
cent
Thov
alai
Per
cent Total
BSNL 09 25 08 22.2 13 36.1 06 16.7 36
Aircel 07 25 06 21.4 11 39.3 04 14.3 28
Airtel 11 26.2 9 21.4 15 35.7 7 16.7 42
Tata
Indicom 05 26.3 04 21.1 07 36.8 03 15.8 19
Vodafone 04 28.6 02 14.3 06 42.9 02 14.3 14
Reliance 04 33.3 01 8.33 06 50 01 8.3 12
Source: Primary Data
From the table, it is inferred that majority of the dealers are available in
Agasteeswaram taluk and also Airtel has more number of dealers in the district, BSNL
secures second place and Aircel ranks third place in dealership in the district. As
BSNL has diversified itself into the mobile industry at later stage, it will take time for
BSNL to rank first in the district in dealership.
4.30 PRICE RANGE OF RECHARGE COUPONS PREFERRED BY
CUSTOMERS
There are different types of recharge coupons provided by the various service
providers. An attempt is made to study the price range of recharge coupons preferred
by customers as revealed by the enquiry with the dealers.
Table 4.29
Price Range of Recharge Coupons Preferred by Customers
Price No. of respondents Per cent
Below 250 30 25
250 – 500 46 38
500- 1000 32 27
Above 1000 12 10
Total 120 100
Source: Primary Data
From the table, it is inferred that most of the customers prefer the recharge
coupons ranging from Rs.250 to 500; only 10 per cent of the customers prefer the
recharge coupons above Rs.1000, as per dealer perspective.
4.31 USAGE OF LIFE CARDS BY CUSTOMERS
Life cards are those which are valid for the whole life period. Incoming service is
allowed throughout the life of the person, provided certain amount should be paid for
recharge at regular intervals. When the subscribers fail to recharge at regular
intervals, the validity will get lapsed. Table 4.30 shows the number of subscribers
using life cards.
Table 4.30
Usage of Life Cards by Customers
Usage of life card No. of respondents Per cent
Using 89 74
Not using 31 26
Total 120 100
Source: Primary Data
From the table, it is seen that 74 per cent of the subscribers are using life card
service and 26 per cent of subscribers are not using the life card service. Since the
majority of customers are using the life cards, it indicates that users are aware of the
benefits available from the use of life cards.
4.32 PRICE RANGE OF TOP UP COUPONS PREFERRED BY CUSTOMERS
There are different types of top up coupons provided by the various service
providers. This is presented in the table below.
Table 4.31
Price Range of Top-up Coupons preferred by Customers
Price(Rs.) No. of respondents Per cent
Below 100 32 26
101-300 33 28
301-500 43 36
501-1000 12 10
Total 120 100
Source: Primary data
From the table, it is inferred that most of the customers prefer the top up
coupons ranging from Rs.301 to 500; only 10 per cent of the customers prefer the top
up coupons between Rs.501 and 1000, as indicated by the dealers.
4.33 PROVIDING ‘EASY CHARGE’ FACILITY TO CUSTOMERS
Easy charge facility is provided by various service providers for prompt
recharge. The customers who maintain good relationship with the dealers and retailers
use this facility for immediate recharge. The table below shows the number of dealers
providing easy charge facility to their customers.
Table 4.32
Providing ‘Easy charge’ Facility to Customers
Easy Charge No. of respondents Per cent
Available 116 97
Not Available 04 03
Total 120 100
Source: Field survey
From table 4.32, it is revealed that the majority of the dealers are providing
‗Easy Charge‘ facility. Only a meagre quantity of dealers does not provide easy charge
facility. As the maximum dealers are providing the easy charge facility, this depicts
that a good relationship exists between the customers and the dealers.
4.34 DURATION OF COLLECTING MONEY AFTER EASY CHARGE
The customers use different time intervals for the payment of money for easy
charge. Table 4.33 depicts this nature.
Table 4.33
Duration of Collecting Money after Easy Charge
Duration No. of respondents Per cent
Immediately after successful easy charge 13 11
Next day 24 20
Twice a week 34 28
Weekly 28 23
Fortnight 12 10
As per convenience 09 07
Total 120 100
Source: Field survey
From table 4.33, it is inferred that most of the customers are regular in their
payment without causing any undue delay. This encourages the dealers to adapt to the
mode of payment which benefits them as well as the retailers. Thus, easy charge
method is found to be a favour to the prospective customers and dealers.
4.35 DETAILS OF DISTRIBUTION OF COMMISSION
Commission is one of the factors in relation to the dealers to get motivated to
stock more number of appropriate sim cards so that the customers could buy them
without any difficulty. Normally the dealers will recommend a sim connection which
gives both to the dealers and customers maximum benefit. Table 4.32 brings out this
fact in sharp focus.
Table 4.34
Details of Distribution of Commission
Brand Commission per sim (Rs.) Recharge (per cent)
Aircel 85 05
Airtel 40 5.5
BSNL 30 6.5
Vodafone 60 6
Source: Field survey
From the table, it can be gathered that selling a sim card yields Rs. 85 for
Aircel, Rs.40 for Airtel and only Rs.30 for BSNL. In terms of percentage the
commission from Airtel is 5.5 per cent, 5 per cent from Aircel and 6.5 per cent from
BSNL and 6 per cent from Vodafone. BSNL offers minimum commission for sale of
its sim cards whereas its recharge percentage is the maximum compared to other
companies.
4.36 DEALERS’ SATISFACTION LEVELS ON SALES PROMOTIONAL
ACTIVITIES OFFERED BY BSNL
Sales promotional activities, apart from advertisement, individual
initiative, and publicity, have larger role to play in enhancing on one side the sale of
products of BSNL among the customers and improving the efficacy of the dealers on
the other. The various sales promotional activities offered by various service
providers are presented in the table below.
Table 4.35
Weighted Average Method
Dealers’ Satisfaction Levels on Sales Promotional Activities offered by BSNL
Sales Promotional
activities
Ranking of Respondents Weighted
Total
Weighted
Average
Ra
nk R1 R2 R3 R4 R5
Advertising and
display aids 11 12 08 03 02 135 3.8 IV
Sales Meetings 12 09 08 06 01 133 3.7 V
Contests 18 09 06 03 0 150 4.2 I
Price offs or
buying allowances 15 07 04 06 04 131 3.6 VI
Special trade terms 09 14 12 01 0 139 3.9 III
Credit facilities 10 04 06 08 08 108 3.0
VI
I
Commission 21 06 04 02 03 148 4.1 II
Source: Field Survey
From the table, it is seen that the dealers are inclined to give top priority to the
contests conducted by companies; commission, though equally important, is
subordinated to the second place; special trade terms claim the third place whereas
advertisement and display of wares are found in the fourth place. Sales meetings,
serving as an important feed back for the promoters, gain the fifth place. The other
activities like price off or buying allowances could only get the sixth position. Credit
facilities are relegated to the seventh place.
4.37 DEALERS’ SATISFACTION LEVELS ON SALES PROMOTIONAL
ACTIVITIES OFFERED BY AIRTEL
The promotional activities of Airtel marketers are discussed below. Airtel
marketers leave the customers in an admirably satisfied mind. The following table
shows the sales promotional activities of Airtel.
Table 4.36
Dealer’s Satisfaction Levels on Sales Promotional Activities offered by Airtel
Sales Promotional activities
Ranking of Respondents Weighted
Total Weighted Average
Rank
R1 R2 R3 R4 R5
Advertising and display aids
12 13 04 08 05 145 3.5 VI
Sales Meetings 14 12 09 07 0 159 3.8 IV
Contests 11 14 04 05 08 141 3.4 VII
Price offs or buying allowances
13 12 08 05 04 151 3.6 V
Special trade terms 23 09 08 02 0 179 4.3 I
Credit facilities 18 08 09 04 03 160 3.9 III
Commission 21 11 06 03 01 174 4.1 II
Source: Field Survey
From the table, it is inferred that the dealers give first rank to special trade
terms, second rank to commission, third rank to credit facilities, fourth rank to sales
meetings, fifth rank to price offs or buying allowances, sixth rank to advertising and
display aids and seventh rank to contests.
4.38 DEALERS’ SATISFACTION LEVELS ON SALES PROMOTIONAL
ACTIVITIES OFFERED BY AIRCEL
Turning to Aircel‘s promotional activities, it is clear that Aircel also finds
favour with the customers as revealed from the table. Customers approach the dealers
for obtaining their services. So, the Aircel marketers must be able to influence the
retailers in promoting their brand among customers. The following table shows the
sales promotional activities of Aircel.
Table 4.37
Dealers’ Satisfaction Levels on Sales Promotional Activities offered by Aircel
Sales Promotional activities
Ranking of Respondents Weighted
Total Weighted Average
Rank
R1 R2 R3 R4 R5
Advertising and display aids
08 09 04 06 01 101 3.6 IV
Sales Meetings 10 04 06 08 0 100 3.5 V
Contests 09 08 05 05 01 103 3.7 III
Price offs or buying allowances
11 07 06 04 0 109 3.9 II
Special trade terms 12 06 08 02 0 112 4 I
Credit facilities 06 07 08 07 0 96 3.4 VI
Commission 08 03 09 08 0 95 3.3 VII
Source: Field Survey
From the table, it is found that the dealers give first rank to special trade terms,
second rank to price offs or buying allowances, third rank to contests, fourth rank to
advertising and display aids, fifth rank to sales meetings, sixth rank to credit facilities
and seventh rank to commission.
4.39 DEALERS’ SATISFACTION LEVELS ON SALES PROMOTIONAL
ACTIVITIES OFFERED BY VODAFONE
Vodafone promotional activities are presented below. The Vodafone
marketers are able to influence the retailers in promoting their brand among
customers. Customers have also been influenced by the business tactics of this new
entrant in cell phone business.
Table 4.38
Dealers’ Satisfaction Levels on Sales Promotional Activities offered by Vodafone
Sales Promotional
activities
Ranking of Respondents Weighted
Total
Weighted
Average Rank
R1 R2 R3 R4 R5
Advertising and
display aids 06 04 02 02 0 56 4 II
Sales Meetings 04 03 04 02 01 49 3.5 V
Contests 05 02 02 03 02 47 3.4 VI
Price offs or buying
allowances 07 02 02 02 01 54 3.8 IV
Special trade terms 08 02 02 01 01 57 4.1 I
Credit facilities 04 02 03 03 02 45 3.3 VII
Commission 06 04 02 01 01 55 3.9 III
Source: Field Survey
From the table, it is seen that the dealer gives first rank to special trade terms,
second rank to advertising and display aids, third rank to commission, fourth rank to
price offs or buying allowances, fifth rank to sales meetings, sixth rank to contests and
seventh rank to credit facilities.
4.40 COMPARISON OF SALES PROMOTIONAL ACITIVITIES
OFFERED BY PREPAID MARKETERS
The different prepaid marketers provide various promotional offers to the
dealers for improving their sales. This activity includes advertisement, sales meetings
etc. and these are tabulated below. This table in brief gives the summary of findings
contained in Table 4.35, 4.36, 4.37 and 4.38
Table 4.39
Comparison of Sales Promotional Activities provided by Service Providers
Sales promotional activities BSNL Airtel Aircel Vodafone
Advertising and display aids 3.8 3.5 3.6 4.0
Sales Meetings 3.7 3.8 3.5 3.5
Contests 4.2 3.4 3.7 3.4
Price offs or buying allowances 3.6 3.6 3.9 3.8
Special trade terms 3.9 4.3 4 4.1
Credit facilities 3.0 3.9 3.4 3.3
Commission 4.1 4.1 3.3 3.9
Source: Tables 4.35, 4.36, 4.37, 4.38
While comparing the sales promotional activities provided by various service
providers BSNL is placed first for contests, for price off allowances Aircel is placed
first and regarding Airtel, credit facilities stands first while compare to other prepaid
cards.
4.41 SATISFACTION LEVELS OF SERVICE PROVIDERS IN VARIOUS
TALUKS USING ANOVA METHOD
The analysis of variance is a method which separates the variation ascribable
to one set of causes from the variation ascribable to another set. It is used to test
whether the means of a number of populations (more than two) are equal.
Table 4.40
Satisfaction Levels of Service Providers using ANOVA
Satisfaction Levels of Dealers
Taluks
Brands Kalkulam Vilavancode Thovalai Agasteeswaram Total
Airtel 13 09 08 12 42
BSNL 10 08 07 11 36
Aircel 09 06 06 07 28
Vodafone 04 05 02 03 14
Total 36 28 23 33 120
X 9 7 5.8 8.3
Source: Primary Data
1. The null hypothesis is formulated that there is no significant difference in
the satisfaction levels of service providers in the different taluks.
2. There is no significant difference in the satisfaction level of dealers with
regard to various service providers.
Correction Factor C = T2
----- = 900
N
Total sum of squares = Σ Σ x2 – C = 148
i j ij
ANOVA TABLE
Square of
variation
Sum of squares Degrees of
freedom
Variance
Ratio
F
Between Taluks 24.5 03 0.17 (MSC) 0.11
Between service
providers
110 03 36.7 (MSR)
Residual 13.5 09 1.5 (MSE) 24.5
Total 148 15
Computed data
MSC MSR
FR = ------- = 0.11, FR = ------------ = 24.5
MSE MSE
1. For γ 1 = 3, γ 2 = 9
F 0.05 = 3.86 (table value)
2. For γ 1 = 3, γ 2 = 6
F 0.05 = 3.86 (table value)
1. The calculated value of F is not much greater than tabled value. Hence, there is
no significant difference existing between the satisfaction levels of dealers in
different taluks.
2. The calculated value of F is much greater than table value. Hence, there is
significant difference between the satisfaction levels of various service
providers available in different taluks.
III SIM CARD RETAILERS
There are various service providers available in the market such as Aircel,
Airtel, BSNL, Vodafone, Tata Indicom, Reliance etc. Persons who are engaged in
some other business are also doing retail cell connection business. The retailers are
dealing in cell brand sim cards, recharge cards and top-up cards. The retailers have
been selected randomly and an enquiry has been conducted about their social
background, the details of the various cell connections they are dealing in and the
promotional strategies followed by the companies to enhance sales. For these, 120
retailers of cell phone service providers have been contacted and interviewed in the
four taluks of Kanyakumari District.
4.42 GENDER OF RETAILERS
The gender of the retailers is enquired into to understand which gender
constitutes the majority in carrying out the retail mobile service business. Interests of
the males differ from those of females. Females seldom enter in all the areas where the
males like to work. Table 4.41 describes the interests of male and female retailers in
doing cell phone business.
Table 4.41
Gender of Sim card Retailers
Gender No. of retailers Per cent
Male 89 74
Female 31 26
Total 120 100
Source: Field survey
Table 4.41 shows that among the cell phone retailers, males constitute the
major proportion of 74 per cent and the females constitute only 26 per cent. This is but
natural. The study reveals that the males are highly interested in cell phone service
providing retail business compared to females.
4.43 AGE OF THE SIM CARD RETAILERS
Persons belonging to different age groups engage themselves in this business.
The different age groups are classified into Adolescents, Adults, Middle Aged, Senior
Citizens and the Aged. Each age group has its own style of shouldering responsibility
and functioning in different situations. As days go on, young persons come to gain
more knowledge and information about the business, and there is transformation in
their attitude towards the business. This has prompted the researcher to highlight this
characteristic. This is presented in Table 4.42.
Table 4.42
Age of the Sim card Retailers
Source: Field survey
Table 4.42 shows that highest number of retailers belongs to the age group of
26 to 40 and it constitutes 62 per cent. Thirty five percent of the retailers belong to the
age group of 41 to 60. The age group 25 to 40 is treated as the adult stage and those
belonging to this age can work hard displaying more energy and enthusiasm.
4.44 MARITAL STATUS OF THE SIM CARD RETAILERS
As marriage exerts influence on persons to be more responsible and cautious
leaving their chivalry behind, it is assumed that they would do better in the business.
The marital status of the retailers has been studied in order to find out whether the
Age (in years) No. of retailers Per cent
26 to 40 74 62
41 to 60 42 35
Above 60 04 03
Total 120 100
respondents involved in the mobile services business are married or unmarried. Table
4.43 depicts the same.
able 4.43
Marital Status of the Retailers
Source: Field Survey
Table 4.43 shows that majority of the respondents are married, 102
respondents are married and their percentage is 85 and 18 are single, and one can
conclude that they are responsible business owners with an eye on sales promotion,
profit, continuity and expansion of business.
4.45 EDUCATIONAL QUALIFICATION OF RETAILERS
Literacy level of retailers has been enquired into and presented in Table 4.44.
Education influences not only perceptions and also expansion of knowledge towards
improving business. For the sake of analysis, the retailers are classified according to
their educational qualification as follows.
Marital status No. of retailers Per cent
Single 18 15
Married 102 85
Total 120 100
Table 4.44
Educational Qualification of Retailers
Educational qualification No. of retailers Per cent
Below 5th std. 15 13
5th std to 8
th std 22 18
SSLC 28 23
Plus two 55 46
Total 120 100
Source: Field survey
Table 4.44 explains the fact that the larger proportion of sim card
retailers‘ literacy level is Plus-Two at 46 per cent; 23 percent of them have reached
upto SSLC. Even persons who have studied upto 8th standard have entered the
business with gusto constituting about 31 per cent.
4.46 YEARS OF EXPERIENCE IN RUNNING THE RETAIL SHOP
Years of experience of retailers is also studied as it serves the momentum to
run the business. If greater proportion of experienced retailers is found, it shows that
sim card retail business provides reasonable returns and therefore it retains the
retailers in the business. This is presented in Table 4.45.
Table 4.45
Years of Experience in Running the Retail Shop
Years of experience No. of retailers Per cent
1 year 14 12
2 years 18 15
3 years 54 45
4 years 30 25
5 years 04 03
Total 120 100
Source: Field Survey
Table 4.45 highlights the fact that as high as 45 per cent of retailers have three
year experience. Cell phone retailers with one year experience account for 12 per cent
of the total retailers. Sim card business attracts new entrants while maintaining the
existing retailers.
4.47 TOTAL INVESTMENT MADE INITIALLY FOR THE SIM CARD
BUSINESS
This aspect has been studied in order to find out how much investment has
been made by the various cell phone retailers for running their business. When more
investment is made, it shows that the business gives profitable returns which
encourage people to do this business in the present as well as in future.
Table 4.46
Total Investment initially made for the Sim card Business
Investment (in Rs.) No. of respondents Per cent
Below 1000 12 10
1000-2000 26 22
2000-3000 62 51
3000-4000 12 10
4000-5000 08 07
Total 120 100
Source: Primary Data
From the table, it is inferred that 22 per cent retailers have invested Rs.1000 to
2000, 51 per cent of retailers invested Rs.2000 to 3000 and only 7 per cent of retailers
invested Rs.4000 to 5000.
4.48 PROFILE OF THE OUTLETS
Profile of the outlets has been studied to find out the patronage shown by the
customers to the outlets. Different outlets like cell phone shops, medical shops, xerox
centres, STD booths, fancy stores, stationary shops and the like are the places where
the intermediaries deal in mobile recharge business.
Table 4.47
Distribution Showing the Profile of Outlet
Profile of Outlets No. of respondents Percent
Grocery shop 54 45
Medical shop 4 03
Xerox 14 12
STD booth 8 7
Fancy store 13 11
Stationary shop 14 12
others 13 10
Total 120 100
Source: Field Survey
Forty five per cent of the retailers own grocery shops as their main business,
where sim card sale outlet is attached. 11 per cent have it in fancy stores, 12 per cent
have sim card service with the stationary shops they own, only 3 per cent have sim
card business attached to their medical shops. This shows that people running various
other businesses such as xerox shop, STD booth, fancy store, medical store, grocery
shop, petty shop and others are also interested in mobile services as an adjunct so that
they can look after the two businesses without sacrificing the main business.
4.49 SIM CARD BRANDS HIGHLY PREFERRED BY THE CUSTOMERS
There are different players available in the sim card market. Different players
are providing sim cards at different rates. The customers select the sim card according
to their utility on the one side and the offers provided by the service providers on the
other.
Table 4.48
Sim card Brands Highly Preferred by the Customers
Brand No. of respondents Per cent
BSNL 36 30
Aircel 19 16
Airtel 52 43
Vodafone 13 11
Total 120 100
Source: Primary Data
The table reveals that 30 per cent of customers prefer BSNL, 16 per cent
prefer Aircel, 43 per cent Airtel, and only 11 per cent prefer Vodafone. Airtel has
many special features like reduced cost per call, internet charges and other down load
charges are very low for Airtel when compared to other mobile services. Customers
feel that by using Airtel, their expenditure on mobile services has considerably come
down.
4.50 SIM CARDS GIVING HIGH TALK TIME AT LOW RATES
There are various sim card distributors in the market. Different sim card
companies provide sim cards at various rates. This study is done to identify which
brand of connection gives high talk time at lower rates.
Table 4.49
Sim Cards Giving High Talk Time at Low Rates
Brand No. of respondents Per cent
BSNL 22 18
Aircel 26 22
Airtel 64 53
Vodafone 08 07
Total 120 100
Source: Primary Data
The table shows that 53 per cent of the retailers feel that Airtel provides
services at lower rates, 22 per cent of the dealers deal in Aircel which provides high
talk time at reduced rates, and only seven per cent feel that Vodafone provides high
talk time at lower rates. Bharti Airtel has provided various offers and price cut offs to
attract new customers and also to retain existing customers.
4.51 PRICE RANGE OF RECHARGE COUPONS PREFERRED BY
CUSTOMERS
There are different types of recharge coupons made available by the various
service providers. An attempt therefore is made to study the price range of recharge
coupons preferred by customers, from the point of view of dealers.
Table 4.50
Price Range of Recharge Coupons Preferred by Customers
Price (in Rs.) No. of respondents Per cent
Below 250 30 25
250 – 500 46 38
500- 1000 32 27
Above 1000 12 10
Total 120 100
Source: Primary Data
The table reveals that most of the customers prefer recharge coupons ranging
from Rs. 250 to 500. Only 10 per cent of the customers prefer the recharge coupons
above Rs.1000 as per the opinions of retailers. Recharge coupons between Rs.250 and
500 are found to be very reasonable, which give high talk time value and the validity
period is extended to longer time interval.
4.52 PRICE RANGE OF TOP UP COUPONS PREFERRED BY
CUSTOMERS
There are different types of top-up coupons provided by the various service
providers. A study is made to find the price range of recharge coupons preferred by
customers as gleaned from the opinions of dealers.
Table 4.51
Price Range of Top up Coupons Commonly Used by Customers
Price (Rs.) No. of respondents Per cent
Below 50 36 30
50-100 28 23
101-200 42 35
201-300 14 12
Total 120 100
Source: Primary Data
From the table, it is inferred that most of the customers prefer the top up
coupons ranging from Rs.101 to 200, according to retailers, only 12 per cent of the
customers prefer top up coupons between Rs.201 and 300.
4.53 PROVIDING ‘EASY CHARGE’ FACILITY TO CUSTOMERS
Easy charge facility is provided by various retailers for immediate recharge
without delay. The customers who have good relationship with the retailers use this
facility. The table below shows the number of retailers providing easy charge facility
to their customers.
Table 4.52
Providing ‘Easy charge’ Facility to Customers
Easy Charge No. of respondents Per cent
Available 115 96
Not available 05 04
Total 120 100
Source: Field Survey
From the table 4.52, it is revealed that the majority of the retailers provide
easy charge facility. As the maximum numbers of retailers provide easy charge
facility, this indicates that a good relationship exists between the customers and the
dealers. On the other side, the dealers want to expand their business targeting more
number of customers and also more investment is put in by the dealers providing this
facility.
4.54 DURATION OF COLLECTING MONEY AFTER EASY CHARGE
The customers use different time intervals for the payment of easy charge.
Table 4.53 depicts this nature.
Table 4.53
Duration of Collecting Money after Easy Charge
Duration No. of respondents Per cent
Immediately after successful easy
charge
14 12
Next day 28 23
Twice a week 31 26
Weekly 30 25
Fortnight 12 10
Once in a month 05 04
Total 120 100
Source: Field Survey
From table 4.53, it is found that most of the customers‘ effect payments
without much delay so that the dealers and retailers can encourage this type of
charging to benefit the customers and also the dealers who get the due replenishment
within a short period. Easy charge method is a successful method of recharging to both
the prospective customers and retailers.
4.55 DISTRIBUTION OF COMMISSION DETAILS
Commission is one of the factors for the retailers to get motivated to stock
more number of sim cards and encourage the customers to buy the appropriate sim
cards. Normally, the retailer will recommend a sim connection which gives more
benefits to him as well to the customers. Table 4.54 depicts this nature.
Table 4.54
Distribution of Commission Details
Brand Airtel Aircel BSNL Vodafone
Commission for selling
a sim (Rs.)
75 30 25 50
Recharge (%) 4 4.5 5 4.5
Source: Field Survey
From the table, it is inferred that for selling a sim card the retailer gets Rs. 75
for Airtel, for Aircel, the rate is Rs. 30, and for BSNL only Rs. 25. And also the
commission for recharge will be 4 per cent for Airtel and 4.5 per cent for Aircel, 5 per
cent for BSNL and 4.5 per cent for Vodafone. BSNL is considered the least provider
of commission for one sim card and the recharge percentage given is higher for BSNL.