Comprehensive Marketing Environment Analysis

A

PROJECT REPORT

ON

“Comprehensive marketing environment analysis with respect to products,

customers & competitors”

& “launching a new Retail Store”

Faculty of Management StudiesInstitute of Rural Management, Jaipur

In Partial Fulfillment for the requirement of theAward of

Post Graduate Diploma in Business Management2009-2011

SUBMITTED TO: SUBMITTED BY:Mrs. Asha Sharma Sarvjeet AroraProject Guide PGDBM- II Sem.FMS-IRM Roll no.1501Jaipur FMS-IRM, Jaipur

Mb.+9982727427

Tata Tele Services Ltd. 1

http://www.tatawalky.com/default.aspx

Faculty of Management StudiesInstitute of Rural Management, Jaipur

CERTIFICATE

Certified that this project report entitled “Comprehensive marketing environment

analysis with respect to products, customers & competitors” & “launching a new Retail

Store” is a record of project work done by Mr. Sarvjeet Arora under my guidance and

supervision and that it has not previously formed the basis for any degree, associate

ship, fellowship to him.

Date: (Mrs. Asha Sharma) Faculty Guide



DECLARATION

I hereby declare that project on “Comprehensive marketing environment analysis with

respects to products, customers & competitors” & “launching a new retail store” is a

bona fide record of work done by me during the course of summer project and it has

not previously formed the basis for the award to me for any degree, diploma, associate

ship, fellowship or other similar title of any other society/institute.

Date: Sarvjeet Arora PGDBM SEM- II Roll.no.1501 Enroll.no. BM/JULY/09/22/2011



ACKNOWLEDGEMENT

The Summer Project on “Comprehensive marketing environment analysis with respect to products, customers & competitors” & “launching a new Retail Store” offered a great learning experience. During the tenure of this project, I was fortunate to have interacted with people, who in their own capacities have encouraged and guided me.

Firstly, I would like to express my sincere gratitude to HR Department of Tata Tele Services Ltd. for providing me an opportunity to undergo summer training in Marketing Department of such a reputed organization. Working with one of the organization was a great learning experience.

My sincere thanks go to Mr. Jaivardhan Bhardwaj (A.M., MARCOM Retail Business), for trusting my potentials by giving me such a valuable project. I would also thank him for providing his guidance and support in completing this project. He has been extremely helpful and cooperative. Without his support & critical evaluation this project could not have been completed successfully.

I extend my heartiest thanks to Brig. S. K. Gaur (Director FMS-IRM), FMS-IRM faculty members for their regular assistance all through the project and i would also thank Mrs. Asha Sharma, (Project Guide, FMS-IRM), for the direction and purpose she gave to this project through her invaluable insights, which constantly inspired me to think beyond the obvious.

Sarvjeet Arora PGDBM II Sem. FMS-IRM Jaipur.



CONTENTS

S.No. Topic Page No.1 Executive Summary 72 Global Telecom Industry: An Overview

2.1 Some Facts of Global Telecom Market812

3 Indian telecom industry 154 Rajasthan telecom market 195 Company profile

4. 5.1 Overview4 5.2 Organizational structure4. 5.3 Vision & mission4. 5.4 Corporate functions 5.5 Key Milestone’s

2022242530

6 Research Methodology6.1 Research Objectives6.2 Research Design6.3 Limitations of Study 6.4 Review of Literature

323233

347 Analysis and Interpretation

7.1 Analysis with respect to products & customers7.1.1 Survey on the use of mobile network (urban

area)7.1.2 Survey on the use of mobile network (rural

area)7.1.3 Survey on the use of internet services (urban

area) 7.1.4 Survey on the use of internet services (rural

area) 7.2 Analysis with respect to competitors

7.2.1 Competition tracking-01 7.2.1.1 Comparison of various company

owned retail stores 7.2.1.2 Factor analysis

7.2.1.3 Comparison of TATA INDICOM store with OBR

7.2.2 Competition tracking-02 7.2.2.1 Comparison of competitor’s trade

schemes 7.2.2.2 Activities of various market players

36

37

45

53

60

67

76

85

8993



7.3 Launching a new retail store7.3.1 Distribution channel of TTSL7.3.2 Store Location 7.3.3 Store Branding7.3.4 Deliverables to retailers by TTSL7.3.5 Deliverables to TTSL by retailers7.3.6 Launching a new store

94

96989999

1008 Findings and recommendations 102

9 SWOT analysis 104

10 Conclusion 105

11 Bibliography 106

12 APPENDIX12.1 Questionnaire 107



EXECUTIVE SUMMARY

In spite of theoretical knowledge gained through classroom study, a person is

incomplete if subjected to practical exposure of real corporate world, challenges and

problem that one has to face at actual work place.MBA is an insight oriented training

program. An incumbent learns the real functioning of knowledge in terms of practical

application. A learner’s appreciable understanding plays the vital role in his/her

management principles and practice simulation to prepare him or her for real business

encounters.

This Report intends to encapsulate my industrial training. It gives detailed account of

my findings. This report gives concentric focus to:


customers & competitors” & “launching a new Retail Store”

It is practical study of marketing environment which focuses on trend of voice & data

in rural & urban areas of Jaipur. It also provides a comprehensive picture of

competitor’s current activities in the market.

The thrust point of study is to learn the trend of various factors which bring difference

in sales.



Launching a new retail store provides the knowledge of distribution channel & importance of retailers.

The comparison of company owned retail stores critically hints the importance of key

factors i.e. products & services. Regular update and education of retailers and

customers is important to make a tidal difference to sales and buying perception.

GLOBAL TELECOM INDUSTRY: AN OVERVIEW

Think of telecommunications as the world's biggest machine. Strung together by

complex networks, telephones, mobile phones and internet-linked PCs, the global

system touches nearly all of us. It allows us to speak, share thoughts and do business

with nearly anyone, regardless of where in the world they might be. Telecom

operating companies make all this happen.

Not long ago, the telecommunications industry was comprised of a club of big

national and regional operators. Over the past decade, the industry has been swept up

in rapid deregulation and innovation. In many countries around the world,

government monopolies are now privatized and they face a plethora of new

competitors. Traditional markets have been turned upside down, as the growth in

mobile services out paces the fixed line and the internet starts to replace voice as the

staple-business.

Plain old telephone calls continue to be the industry's biggest revenue generator, but

thanks to advances in network technology, this is changing. Telecom is less about

voice and increasingly about text and images. High-speed internet access, which

delivers computer-based data applications such as broadband information services and

interactive entertainment, is rapidly making its way into homes and businesses around

the world. The main broadband telecom technology - Digital Subscriber Line


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(DSL) - ushers in the new era. The fastest growth comes from services

delivered over mobile networks.

Of all the customer markets, residential and small business markets are arguably the

toughest. With literally hundreds of players in the market, competitors rely heavily on

price to slog it out for households' monthly checks; success rests largely on brand

name strength and heavy investment in efficient billing systems. The corporate

market, on the other hand, remains the industry's favorite. Big corporate customers –

Concerned mostly about the quality and reliability of their telephone calls and data

delivery - are less price-sensitive than residential customers. Large multinationals,

for instance, spend heavily on telecom infrastructure to support far-flung operations.

They are also happy to pay for premium services like high-security private networks

and videoconferencing.

Telecom operators also make money by providing network connectivity to other

telecom companies that need it, and by wholesaling circuits to heavy network users

like internet service providers and large corporations. Interconnected and wholesale

markets favor those players with far-reaching networks.

KEY TERMS

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND

AMORTIZATION (EBITDA):

An indicator of a company's financial performance calculated as revenue less expenses.

AVERAGE REVENUE PER USER (ARPU):

Used most in the context of a telecom operator's subscriber base, ARPU sometimes offers a useful measure of growth performance. ARPU levels get tougher to sustain competition, and increased churn exerts a downward pressure. ARPU for data services have been slowly increasing.


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Churn Rate :

The rate at which customers leave for a competitor. Largely due to fierce competition, the telecom industry boasts - or, rather, suffers - the highest customer churn rate of any industry. Strong brand name marketing and service quality tends to mitigate churn.

BROADBAND :

High-speed internet access technology.

ANALYST-INSIGHT

It is hard to avoid the conclusion that size matters in telecom. It is an expensive business; contenders need to be large enough and produce sufficient cash flow to absorb the costs of expanding networks and services that become obsolete seemingly overnight. Transmission systems need to be replaced as frequently as every two years. Big companies that own extensive networks - especially local networks that stretch directly into customers' homes and businesses - are less reliant on interconnecting with other companies to get calls and data to their final destinations. By contrast, smaller players must pay for interconnection more often in order to finish the job. For little operators hoping to grow big someday, the financial challenges of keeping up with rapid technological change and depreciation can be monumental. Earnings can be a tricky issue when analyzing telecom companies. Many companies have little or no earnings to speak of. Analysts, as a result, are often forced to turn to measures besides price-earnings ratio (P/E) to gauge valuation.

Price-to-sales ratio (price/sales) is the probably simplest of the valuation approaches: take the market capitalization of a company and divide it by sales over the past 12 months. No estimates are involved. The lower the ratio, the better Price/sales is a reasonably effective alternative when evaluating telecom companies that have no earnings; it is also useful in evaluating mature companies.

Another popular performance yardstick is EBITDA. EBITDA provides a way for investors to gauge the profit performance and operating results of telecom companies with large capital expenses. Companies that have spent heavily on infrastructure will generally report large losses in their earnings statements. EBITDA helps determine whether that new multimillion dollar fiber-optic network, for instance, is making money each month, or losing even more. By stripping away interest, taxes and capital expenses, it allows investors to analyze whether the baseline business is profitable on a regular basis.Investors should be mindful of cash flow. EBITDA gives an indication of profitability, whereas cash flow measures how much money is actually flowing through the telecom operator at any given period of time. Is the company making enough to repay its loans and cover working capital? A


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telecom company can be recording rising profits year-by-year while its cash flow is ebbing away. Cash flow is the sum of new borrowings plus money from any share issues, plus trading profit, plus any depreciation. Keep an eye on the balance sheet and borrowing. Telecom operators frequently have to ring up substantial debt to finance capital expenditure. Net debt/EBITDA provides a useful comparative measure. Again, the lower the ratio, the more comfortably the operator can handle its debt obligations. Credit rating agencies like Moody's and Standard & Poor's (S&P) take this ratio very seriously when evaluating operators' borrowing-risk.

PORTER'S 5 FORCES ANALYSIS :

1. Threat of New Entrants. It comes as no surprise that in the capital-intensive telecom industry the biggest barrier to entry is access to finance. To cover high fixed costs, serious contenders typically require a lot of cash. When capital markets are generous, the threat of competitive entrants escalates. When financing opportunities are less readily available, the pace of entry slows. Meanwhile, ownership of a telecom license can represent a huge barrier to entry. In the U.S., for instance, fledgling telecom operators must still apply to the Federal Communications Commission (FCC) to receive regulatory approval and licensing. There is also a finite amount of "good" radio spectrum that lends itself to mobile voice and data applications. In addition, it is important to remember that solid operating skills and management experience is fairly scarce, making entry even more difficult.2. Power of Suppliers. At first glance, it might look like telecom equipment suppliers have considerable bargaining power over telecom operators. Indeed, without high-tech broadband switching equipment, fiber-optic cables, and mobile handsets and billing software, telecom operators would not be able to do the job of transmitting voice and data from place to place. But there are actually a number of large equipment makers around. There are enough vendors, arguably, to dilute bargaining power. The limited pool of talented managers and engineers, especially those well versed in the latest technologies, places companies in a weak position in terms of hiring and salaries.3. Power of Buyers. With increased choice of telecom products and services, the bargaining power of buyers is rising. Let's face it; telephone and data services do not vary much, regardless of which companies are selling them. For the most part, basic services are treated as a commodity. This translates into customers seeking low prices from companies that offer reliable service. At the same time, buyer power can vary somewhat between market segments. While switching costs are relatively low for residential telecom customers, they can get higher for larger business customers, especially those that rely more on customized products and services.4. Availability of Substitutes. Products and services from non-traditional telecom industries pose serious substitution threats. Cable TV and satellite operators now compete for buyers. The cable guys, with their own direct lines into homes, offer broadband internet services, and satellite links can substitute for high-speed business networking needs. Railways and energy utility companies are laying miles of high-capacity telecom network alongside their own track and pipeline assets. Just as worrying for telecom operators is the internet: it is becoming a viable


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vehicle for cut-rate voice calls. Delivered by ISPs - not telecom operators - "internet telephony" could take a big bite out of telecom companies' core voice revenues.5. Competitive Rivalry. Competition is "cut throat". The wave of industry deregulation together with the receptive capital markets of the late 1990s paved the way for a rush of new entrants. New technology is prompting a raft of substitute services. Nearly everybody already pays for phone services, so all competitors now must lure customers with lower prices and more exciting services. This tends to drive industry profitability down. In addition to low profits, the telecom industry suffers from high exit barriers, mainly due to its specialized equipment. Networks and billing systems cannot really be used for much else, and their swift obsolescence makes liquidation pretty difficult.

SOME FACTS OF GLOBAL TELECOM MARKET

With global mobile phone penetration rate reaching approximately half of the

global population, growth momentum of global subscribers is likely to slow

down after 2009. The CAGR of global mobile phone subscribers is expected to

reach 7.9 percent during the period 2007-2012, boosting the number of global

mobile phone subscribers to 4.5 billion in 2012, with penetration rate hitting

64.7 percent, up from 46.8 percent in 2007.

Rollout of "3G for All" promotional programs in major countries, growth of

global GSM/GPRS/EDGE subscribers is likely to slow down gradually.

CDMA/HSDPA will take over converted subscribers of GSM/GPRS/EDGE,

boosting its market share to 24.7 percent in 2012 from 6.7 percent in 2007.

Global CDMA 2000 1x EV-DO subscribers will start to decline from 2009, due

to the fact that Australian telecom operators Telstra and Hutchison decided to

abandon CDMA and switch to W-CDMA for cost concerns. Hence, global

CDMA subscribers are expected to reach 492 million in 2012, with a 10.9

percent market share.

The GSM system -- including GSM, GPRS, EDGE, WCDMA, HSPA -- has got

an upper hand over UMB in the market. LTE is likely to enter

commercialization in 2011. The CDMA system, including

CDMA/EV-DO/UMB, will be limited due to global roaming problems.


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Competition is intensifying from existing and new players.

Significant price erosion.

Customers have far greater choice in communications.

Growing demand for broadband.

Emerging markets delivering significant growth.

Continued significant regulatory pressure.

DISTRIBUTION OF GLOBAL MOBILE SERVICES REVENUES







INDIAN TELECOM INDUSTRY

The Indian telecommunications industry is one of the fastest growing in the world. According to the Telecom Regulatory Authority of India (TRAI), the number of telecom subscribers in the country reached 621.28 million as on March 31, 2010, an increase of 3.38 per cent from 600.98 million in February 2010. With this the overall teledensity (telephones per 100 people) has touched 52.74.

The wireless subscriber base has increased to 584.32 million at the end of March 2010 from 564.02 million in February 2010, registering a growth of 3.6 per cent.

Value-Added Services (VAS) Market

Mobile value added services include text or SMS, menu-based services, downloading of music or ring tones, mobile TV, videos and sophisticated m-commerce applications. According to the Economic Survey 2009-10, prior to 2008 a majority of VAS revenue was attributed to SMS. But with greater penetration of new services, availability of relatively inexpensive, feature-rich handsets and consumer education, value-added services other than SMS are gaining importance. It is expected that over the next few years non-SMS services will become a dominant contributor to VAS revenue.

Major Investments

The booming domestic telecom market has been attracting huge amounts of investment which is likely to accelerate with the entry of new players and launch of new services.

According to the Department of Industrial Policy and Promotion (DIPP), the telecommunications sector which includes radio paging, mobile services and basic telephone services attracted foreign direct investment (FDI) worth US$ 2,495 million during April to February 2010. The cumulative flow of FDI in the sector during April 2000 and February 2010 is US$ 8,872 million.

Norway-based telecom operator Telenor has bought a further 7 per cent in Unitech Wireless for a little over US$ 431.3 million. Telenor now has 67.25 per cent hold of the company. Telenor has now completed its four-stage stake buy and has invested a total of US$ 1.32 billion in Unitech Wireless as agreed on with the latter last year.

The government has approved the foreign direct investment (FDI) proposal of the Federal Agency for State Property Management of the Russian Federation to buy 20 per cent stake in telecom service provider Sistema-Shyam for US$ 660.1 million.



Going Global

In March 2010, Bharti Airtel bought the African operations of Kuwait-based Zain Telecom for US$ 10.7 billion, driving the Indian player into the league of top ten telecom players globally.

The Reserve Bank has liberalized the investment norms for Indian telecom companies by allowing them to invest in international submarine cable consortia through the automatic route. In April 2010, RBI issued a notification stating "As a measure of further liberalization, it has now been decided... to allow Indian companies to participate in a consortium with other international operators to construct and maintain submarine cable systems on co-ownership basis under the automatic route." The notification further added, "Accordingly, banks may allow remittances by Indian companies for overseas direct investment."

3G Services

The Department of Telecom has taken the pioneering decision of launching of 3G services by BSNL and MTNL and initiation of process for auction of spectrum for 3G services to private operators. Allocation of spectrum for third-generation (3G), and broadband wireless access (BWA) services was done through a controlled simultaneous, ascending e-auction process.

All the 71 blocks that were put up for auction across the 22 service areas in the country were sold, leaving no unsold lots. Auction for 3G spectrum ended on May 19, 2010 after 183 rounds of intense bidding over a span of 34 days. The Government is expected to morph revenue worth US$ 14.6 billion. All the available slots across 22 circles have been sold to seven different operators.

A pan-India bid for third generation spectrum stood at US$ 3.6 billion. The Anil Ambani-led Reliance Communication bagged the highest number of 13 circles at a cost of US$ 1.9 billion, followed by Bharti Airtel in 12, Idea in 11 and Vodafone and the Tatas in nine circles each, according to the Department of Telecommunications.

MTNL and BSNL will have to pay US$ 1.42 billion and US$ 2.2 billion respectively.

Manufacturing

The Indian telecom industry manufactures a vast range of telecom equipment using state-of-the-art technology.

According to the Economic Survey 2009-10, the production of telecom equipment in value terms has increased from US$ 9 billion in 2007-08 to US$ 10.53 billion in 2008-09 and is expected to be US$ 12.4 billion in 2009-10.

Exports have increased from US$ 86.74 million in 2002-03 to US$ 23.7 billion in 2008-09, accounting for 21 per cent of the equipment produced in the country.



Telecommunication equipment major Nokia Siemens is planning to source components worth US$ 28.5 billion from India in 2010-11. In 2009, the company sourced components worth US$ 20 billion from India.

According to a report by technology researcher Gartner Inc., India ranks fourth in manufacturing telecom equipment in the Asia-Pacific (Apac) region. The country has a 5.7 per cent share of the region’s total telecom equipment production revenue of US$ 180 billion in 2009.

"We expect India to move up to the third spot (after China and South Korea) with a share of 8.5 per cent of the total (estimated) Apac telecom equipment production revenue of US$ 277 billion by 2014," Gartner said. The firm estimates India’s telecom equipment production revenue to grow at a CAGR of 17.1 per cent to reach US$ 22.6 billion in fiscal 2014. India will be the fastest growing telecom equipment production market in the Apac region over the next five years, it predicts.

Rural Telephony

According to the Economic Survey 2009-10, rural tele-density has increased from 1.2 per cent in March 2002 to 15.1 per cent in March 2009 and further to 21.2 per cent at the end of December 2009.

Rural telephone connections have gone up from 12.3 million in March 2004 to 123.5 million in March 2009 and further to 174.6 million in December 2009. The share of private sector players in the total telephone connections has steadily increased from around 14 per cent in 2005 to 31 per cent as on December 31, 2009. During 2008-09, the growth rate of rural telephones was 61.5 per cent as against 36.7 per cent for urban telephones. The private sector has contributed significantly to the growth of rural telephony by providing 81.5 per cent of the rural phones as on December 31, 2009.

It is proposed to achieve rural tele-density of 25 per cent by means of 200 million rural connections by the end of the Eleventh Five Year Plan.

Policy Initiatives

The government has taken many proactive initiatives to facilitate the rapid growth of the Indian telecom industry.

In the area of telecom equipment manufacturing and provision of IT-enabled services, 100 per cent FDI is permitted.

No cap on the number of access providers in any service area. In 2008, 122 new Unified Access Service (UAS) licenses were granted to 17 companies in 22 services areas of the country.

Revised subscriber based criteria for allocation of Global System of Mobile Communication (GSM) and Code Division Multiple Access (CDMA) spectra were issued in January 2008.

To provide infrastructure support for mobile services a scheme has been launched to provide support for setting up and managing 7,436 infrastructure sites spread over 500 districts in 27



states. As on December 31, 2009, about 6,956 towers had been set up under the scheme.

According to the Consolidated Foreign Direct Investment (FDI) Policy document, the FDI limit in telecom services is 74 per cent subject to the following conditions:

This is applicable in case of Basic, Cellular, Unified Access Services, National/ International Long Distance, V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS) and other value added Services.

Both direct and indirect foreign investment in the licensee company shall be counted for the purpose of FDI ceiling. Foreign Investment shall include investment by Foreign Institutional Investors (FIIs), Non-resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs), American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and convertible preference shares held by foreign entity. In any case, the 'Indian' shareholding will not be less than 26 per cent

FDI up to 49 per cent is on the automatic route and beyond that on the government route. FDI in the licensee company/Indian promoters/investment companies including their holding companies shall require approval of the Foreign Investment Promotion Board (FIPB) if it has a bearing on the overall ceiling of 74 per cent. While approving the investment proposals, FIPB shall take note that investment is not coming from countries of concern and/or unfriendly entities.

The investment approval by FIPB shall envisage the conditionality that the Company would adhere to licensed Agreement.

FDI shall be subject to laws of India and not the laws of the foreign country/countries

The Road Ahead

According to a report published by Gartner Inc in June 2009, the total mobile services revenue in India is projected to grow at a compound annual growth rate (CAGR) of 12.5 per cent from 2009-2013 to exceed US$ 30 billion. The India mobile subscriber base is set to exceed 771 million connections by 2013, growing at a CAGR of 14.3 per cent in the same period from 452 million in 2009. This growth is poised to continue through the forecast period, and India is expected to remain the world’s second largest wireless market after China in terms of mobile connections.

"The Indian mobile industry has now moved out of its hyper growth mode, but it will continue to grow at double-digit rates for next three years as operators focus on rural parts of the country," said Madhusudan Gupta, senior research analyst at Gartner. "Growth will also be triggered by increased adoption of value-added services, which are relevant to both rural and urban markets."

Mobile market penetration is projected to increase from 38.7 per cent in 2009 to 63.5 per cent in 2013, according to Gartner.



TELECOMMUNICATION INDUSTRY OF RAJASTHAN

The State offers sound infrastructure and well-developed information and communication facilities. With high penetration rates in both the cellular phones and the internet market, Rajasthan today boasts a competitive business environment for both fixed network and value-added network carriers and service providers while providing high-quality services to consumers and businesses.

According to report Rajasthan have 27,742,395 mobile phone subscribers till March 2010.

Telecommunication Service Providers in Rajasthan

Bharat Sanchar Nigam Limited, Airtel, Vodafone, Tata, Reliance, IDEA, MTS, Virgin are the major telecommunications service providers in Rajasthan which cater to the growing needs of the State.

Internet connectivity is available throughout the State and a state-wide optic fiber cable backbone is in place.

Recently Aircel, India’s 5th largest GSM mobile service provider geared up to expand its 2.5G network in Rajasthan circles too.



COMPANY PROFILE

OVERVIEW

Tata Teleservices Limited spearheads the Tata Group’s presence in the telecom sector. The Tata

Group had revenues of around US $62.5 billion in Financial Year 2007-08, and includes over 90

companies, around 350,000 employees worldwide and more than 3.2 million shareholders.

Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x technology platform in

India. It has embarked on a growth path since the acquisition of Hughes Telecom (India) Ltd

[renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. It launched mobile

operations in January 2005 and today enjoys a pan-India presence through existing operations in all

of India’s 22 telecom Circles. The company is also the market leader in the fixed wireless telephony

market. The company’s network has been rated as the ‘Least Congested’ in India for last four

consecutive quarters by the Telecom Regulatory Authority of India through independent surveys.

Tata Teleservices Limited now also has a presence in the GSM space, through its joint venture with

NTT DOCOMO of Japan, and offers differentiated products and services under the TATA

DOCOMO brand name. TATA DOCOMO arises out of the Tata Group’s strategic alliance with

Japanese telecom major NTT DOCOMO in November 2008. TATA DOCOMO has received a pan-

India license to operate GSM telecom services—and has also been allotted spectrum in 18 telecom



Circles and will roll out its services shortly, starting with South India. The GSM

network of the company is expected to match the robust and reliable 3G-compliant telecom

infrastructure it has developed for CDMA services.

The company also recently announced a unique reverse equity swap strategic agreement between its

fully-owned telecom tower subsidiary, Wireless TT Info-Services Limited, and Quippo Telecom

Infrastructure Limited—with the combined entity kicking off operations with 18,000 towers, thereby

becoming the largest independent entity in this space—with the highest tenancy ratio in the Indian

telecom industry. Within two years, the new entity will have a portfolio of 50,000-plus towers.

Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd, serves over 36

million customers in more than 320,000 towns and villages across the country, with a bouquet of

telephony services encompassing Mobile Services, Wireless Desktop Phones, Public Booth

Telephony and Wire line Services. Other services include value-added services like Voice Portal,

Roaming, Post-paid Internet Services, Three-way Conferencing, Group Calling, Wi-Fi Internet, USB

Modem, Data Cards, Calling Card Services and Enterprise Services. Some of the other products

launched by the company include Pre-paid Wireless Desktop Phones, Public Phone Booths, Mobile

Handsets and Voice & Data Services such as BREW Games, Voice Portal, Picture Messaging,

Polyphonic Ring Tones, and Interactive Applications like news, cricket, astrology, etc.



ORGANIZATIONAL STRUCTURE

The Marcom function for HNI BU looks into all the activities related to the marketing of Postpaid

Mobile, Wireless Phones - Walky, Internet Access Devices and high end handsets. This includes

activities right from determining the Positioning for our offerings in the HNI market, Consumer

Research (pre Launch & post launch) to evaluate consumer response & constructing an effective Go-

to Market plan for the launch of any new product service launched by the HNI BU.

VAS

VAS or Value Added Services is seen as the future of the Telecom Industry in India. Be it

Internet services, multimedia messaging, WAP-Java enabled content, BREW Data services,

Caller tunes or other infotainment services; Tata Indicom has not only redefined this sector but is


http://telespace:8080/BU/vas/


constantly spearheading the VAS revolution in India With a plethora of

services under the ‘i-Chill’ and ‘Tata Zone’ portals there’s something for everyone whether you

are looking to download songs and caller tunes, live news and sport updates, Bollywood content,

religious tunes and services or wish to know your horoscope instantly! With the launch of the

free of cost ‘i-help’ services Tata Indicom introduced a first of its kind service which allows you

to get in touch with your near and dear ones instantly in case of an emergency. With new

frontiers like social networking, mobile advertising, m-commerce, utility and enterprise services

the future of the Tata Indicom mobile headset as a convergence device is assured. The future is

bright, the future is VAS!

VISION

Trusted service to 100 million happy customers by 2011

To be a Strategic Partner in Business, making TTSL an “Employer of Choice”

Deliver a new world of communications to advance the reach and leadership of our customers.

MISSION

To empower every Indian to connect with the world affordably

To provide competent & “CRISP” Human Resource in the organization.

To create innovative and flexible people-centered programs and services to attract and retain best

& the brightest talent.



To create a culture of performance, this encourages teamwork, learning &

innovation.

To create a leadership pipeline based on organizational values

To enrich quality of life of the employee for Work-Life balance

OUR VALUES Integrity: Trust Travels: We must conduct our business fairly, with honesty and transparency.

Everything we do must stand the test of public scrutiny.

Understanding: Open the world: We must be caring, show respect, compassion and humanity

for our colleagues and customers around the world, and always work for the benefit of the

communities we serve.

Flexibility: Act Agile: Work to create, design and grow in an environment that supports our

customers and people with adaptive thinking and action.



Excellence: Go the Distance: We must constantly strive to achieve the highest

possible standards in our day-to-day work and in the quality of the goods and services we

provide.

Unity: Journey as One: We must work cohesively with our colleagues across the Group and

with our customers and partners around the world, building strong relationships based on

tolerance, understanding and mutual cooperation.

Responsibility: Advance Life: We must continue to be responsible, sensitive to the countries,

communities and environments in which we work, always ensuring that what comes from the

people goes back to the people many times over.

COMMITMENT

Invest in building long-lasting relationships with customers and partners and lead the industry in

responsiveness and flexibility.

STRATEGY

Build leading-edge IP-leveraged solutions advanced by our unmatched global infrastructure and

leadership in emerging markets.

CORPORATE FUNCTIONS

The major corporate functions of TTSL are.1. Corporate Services

a. Facilitate and develop strategy for TTSLb. Facilitate development of technology road map for TTSL.c. Support the development of long term and short term plans for TTSL.d. Build a competitive intelligence system.e. Facilitate AOP/ABP development



f. Develop 900 Day plan strategyg. Plan and support cascading of strategyh. Provide inputs and/or develop White paper.i. Facilitate, Participate and Lead projectsj. Respond to TATA Group's Strategy initiativesk. Develop segmentation framework l. Regulatory Affairsm. Legal & Secretarialn. Strategyo. BPRp. CRM

2. Corporate Sustainability: Earlier this year, Tata Teleservices Limited worked with TCCI to

finalize what, in Tata Group parlance, is called The Big Picture. The Big Picture identifies

the areas in which a Tata company will carry out its Corporate Sustainability initiatives. For

Tata Teleservices, the Big Picture identified the two areas of ‘Education’ and ‘Environment’.

With Employee Volunteerism being the central driving force here is a glimpse of the Big

Picture.



Our Projects:

Education

Empowering Persons with Disabilities

Employee Volunteer Program me

Social Awareness Campaigns

Livelihood Creation and Income Enhancement

Publications

3. Marketing: These are the major areas.

HNI BU

Marcom -Brand

Enterprise Business Services

Marcom - CMBU

Marcom - ABU

Retail Marketing

Media Marcom

4. Finance

5. HR & FMS

6. IT

7. Technology

Tata Teleservices has Unified Access Service licenses for 18 circles and 3 more approved for

new circles. Along with TTML (Tata Teleservices Maharashtra Limited) it covers over 6000

towns and has 11630 cell sites. With over 57,000 Kilometer of network backbone – Tata

Indicom’s network is one of the largest in the country. With licenses for J&K, Assam & North

East obtained in January 2008, network coverage is currently installed and services are expected

to launch by 2008-09. Tata Teleservices is also striving to offer affordable services in rural areas

with cost effective network model for rural rollout and wide coverage in rural areas which is

constantly expanding.



8. Business Excellence: The story of Business Excellence at TTSL started in 2001 when TTSL

was a one circle operation at AP. The primary focus at that time was on TBEM. As TTSL grew

and expanded its footprint across the nation, BE too grew. Over the years many other areas like

Propel, Quality Assurance Audits, VMV co-creation & Customer Insight too came under the BE

umbrella. Today BE stands for `delivery’ by taking up initiatives and completing them within

stipulated time.

Business Excellence covers the following areas:

VMV – Co-creation and Cascade

TATA Business Excellence Model

QMS: TL 9000 Certification

Process Management

Knowledge Management

Quality Service Assurance

Project PROPEL

Customer Insights

Annual Improvement Plan

BE Update Newsletters

9. TTSL Information Security

NETWORK ACROSS INDIA

To allow for ease of operations, Telecom is geographically divided into Circles. At TTSL, these

Circles operate as independent functional units and are each headed by a Chief Operating Officer

(COO). Tata Teleservices today has a Pan-India presence with operations in 20 Circles.


http://telespace:8080/Support_Functions/Corporate_Services/BE/TBEM/


MILESTONES

2008:

NTT Docomo and Tata agree on strategic alliance in India.

2007:

Tata Teleservices crosses the 18 million subscribers milestone

Tata Teleservices become first service provider to launch its online store “I-

choose”.

2006:

Tata Indicom launches its unique single T-Sim card based “One world One

Number” International Roaming Service across CDMA/GSM countries.

Tata Indicom subscriber base crosses the 10 million mark nationally in June

06.

2005:



Tata Indicom completely rolls out its services in 20

circles nationally.

Tata Indicom services made available in 1500 cities. Tata Indicom crosses the

1500 cities mark.

Tata Indicom launches its first own exclusively branded phone under the

name “Indicom Gem”.

2004:

Tata Indicom repositions its Fixed Wireless phone category under the brand

name “Walky”.

Tata Indicom launches its Prepaid services under the brand name “Truepaid”.

Tata Indicom subscriber base crosses the 2 million mark by registering 300%

growth in Fixed Wireless phone category.

Tata Indicom launches roaming service across five circles.

2003:

Tata Indicom subscriber base crosses the 8 Lakhs. CDMA Mobile service

launched in Maharashtra.

2002:

Tata Teleservices Ltd. unveils its new brand Tata Indicom while launching its

services in Delhi, Gujarat, Tamil Nadu and Karnataka.

Tata Teleservices Ltd. acquires Hughes telecom, a company which has a

strong presence in basic telephony in the state of Maharashtra and Goa.

Tata Teleservices Ltd. launches Digital DSL data services.

2001:

Tata Teleservices Ltd. is among the first three private basic telecom service

providers in the country, to be awarded the Letter of Intent (LoI) to provide

basic telecom services in 15 other states of India.

Tata Teleservices Ltd. becomes the first private basic telecom service provider

in the country to launch limited mobility services- Tata Indicom CDMA

mobile.

1999:



Tata Teleservices Ltd. becomes first private basic telecom

service provider to launch services in the state of Andhra Pradesh.

First private telecom service provider in the country to offer Centrex to its

customers.

1998:

First to introduce the concept of smart card technology in Pay Telephone

Business. Tata Teleservices Ltd. has signed up with Schlumberger of France

to establish payphone network.

1997:

License agreement signed with DoT for operating basic telephone services.


customers & competitors & launching a new Retail Store”

OBJECTIVES

To analyze the marketing environment for TTSL.

To find out the market penetration of TTSL.

Comparative analysis with major telecom players.

Study of consumer behavior.

To discover ways to enhance market share of TTSL.



To determine the existing customer satisfaction level.

To find out the criteria to launch a new retail store.

RESEARCH METHODOLOGY

Research Design: Descriptive: Descriptive research design is a scientific method which involves observing the behavior of a subject without influencing it in any way. For the purpose of our study, we have used descriptive research design.

Sampling: Convenient sampling

Sample size: 150 (for each survey)

Statistical Tools: Hypothesis Tests, Charts and Graphs.

Area Covered: Jaipur (Rural & Urban).

Type of data collection technique:

Primary data Questionnaire

Secondary data Secondary data for the purpose of the study was collected from company reports,

internet and magazines.

PRACTICAL UTILITY OF THE STUDY

The customer survey will help companies to gather information about awareness level of people

about TTSL products, their buying behavior and force behind their decision. The survey will help

companies in devising new promotional strategies for attracting new customers in order to increase

sales growth. . The Stores survey conducted will help company to gather information about

competitor’s stores, to come across various factors which are responsible for churning of store and

reduced sales. The survey would also help the future researchers as it would provide them substantial

data for their research work.

LIMITATIONS



Time constraints.

Some time, customer decision does not reveal the correct information.

The field work was in Jaipur only and only one area study does not reveal the whole market

situation.

Busy schedule of corporate guide and his team.

Busy schedule of people.

Business Month End Closing.

However, all care has been taken to overcome these limitations and make the study comprehensive, unbiased and realistic.

REVIEW OF THE LITERATURE

THE MARKETING ENVIRONMENT

The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment,' the 'micro-environment' and the 'internal environment'.



THE MACRO ENVIRONMENT This includes all factors that can influence an organization, but that are out of their direct control. A

company does not generally influence any laws. It is continuously changing, and the company needs

to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization

means that there is always the threat of substitute products and new entrants. The wider environment

is also ever changing, and the marketer needs to compensate for changes in culture, politics,

economics and technology.


http://www.marketingteacher.com/lesson-store/lesson-five-forces.html

http://www.marketingteacher.com/lesson-store/lesson-swot.html

http://www.marketingteacher.com/lesson-store/lesson-pest.html


THE INTERNAL ENVIRONMENTAll factors that are internal to the organization are known as the internal environment. They are

generally audited by applying the ‘five Ms’ which are Men, Money, Machinery, Materials &

Markets. The internal environment is as important for managing change as the external. As

marketers we call the process of managing internal change `internal marketing’. Essentially we use

marketing approaches to aid communication & change management.

The external environment can be audited in more detail using other approaches such as SWOT

analysis, Michael Porter’s Five Forces analysis or PEST-analysis.

ANALYSIS AND INTERPRETATION OF DATA

Data analysis is a process of gathering, modeling, and transforming data with the goal of

highlighting useful information, suggesting conclusions, and supporting decision making. Data

analysis has multiple facets and approaches, encompassing diverse techniques under a variety of

names, in different business, science, and social science domains.



This project entitled “Comprehensive marketing environment analysis with

respect to products, customers & competitors” & “launching a new Retail Store” is completed

in number of phases which include survey on the use of mobile network, survey on the use of

internet services, survey on company owned retail stores. For analyzing the results, we have used

Chi Square test, factor rating analysis, weighted average method and percentage. For Interpretation,

Bar charts and Pie Charts are used.

ANALYSIS WITH RESPECT TO PRODUCTS & CUSTOMERS

SURVEY ON THE USE OF MOBILE NETWORK (URBAN AREA)

Customers involved in the survey-



The above trend indicates the percentage of subscribers of various telecom companies participated in the survey.

1. How long have you been using this network?



The above trend indicates that most of the people retain their same mobile connections for a long time.

2. Customer’s preference



The above trend indicates that people prefer GSM services rather than CDMA.

3. Have you ever purchased a mobile connection that you have become disappointed with soon after?



Various people were disappointed with the services of their mobile service provider due to following reasons:

o Bad network coverage

o High call rates

o Un fair charges

o Lack of good schemes for subscribers

. 4. How many mobile connections do you have in your family?



The above trend indicates that most of the families maintain 3 or more than 3 mobile phone connections.

5. Mobile phone usages



The above trend indicates that people prefer using calling & massaging facilities rather than GPRS & multimedia services on mobile phones.

6. Customer’s preferences while purchasing a new mobile connection.



The above trend indicates customer’s preferences while purchasing a new mobile connection.

The trend indicates that call rates are the most important parameter while purchasing a new mobile connection.

7. Are you satisfied with the services of your present mobile service provider?



The above trend indicates that most of the people are satisfied with their present mobile service provider.

Some people were not satisfied due to various reasons:

o High call rates

o Bad network coverage

o Specific needs



Survey on the use of mobile network (rural area)

Customers involved in the survey-



The above trend indicates the percentage of the subscribers of various telecom companies participated in the survey.

1. How long have you been using this network?

The above trend indicates that retention of the mobile connection in rural area is less than urban area.



2. Customer’s preference

The above trend indicates that most of the people prefer GSM rather than CDMA.




In rural areas following were the reasons for disappointment-o Bad network coverageo High call rates



4. How many mobile connections do you have in your family?



The above trend indicates that the most of the families which belongs to rural areas, maintain 1 or 2 mobile connections

5. Mobile phone usages



The above trend indicates that the usage of GPRS & multimedia facilities of mobile phone is negligible in rural areas.

Most of the people use their mobile for calling & messaging.

6. Customer’s preferences while purchasing a new mobile connection-



The above trend indicates customer’s preferences while purchasing a new mobile connection.

The trend indicates that call rates and network coverage are the most important parameter while purchasing a new mobile connection.

7. Are you satisfied with the services of your present mobile service provider?



The above trend indicates that most of the people were satisfied with their present mobile service providers.



Survey on the use of internet services (urban area)

1. Which Broad band Network you use?

The above trend indicates the percentage of the subscribers of varoius companies participated in the survey.



2. Is your broad band net connector gives you the fast access?

The above trend indicates degree of variations in the speed of net connector.

Only 54 % users are satisfied with the speed of their net connector.



3. How satisfied are you with your present net connector?

The above trend indicates the satisfaction levels of the subscribers with their present net connector.



4. Parameters of customer’s satisfaction

The above trend indicates the parameters of customer’s satisfaction.

Feasible cost in the top priority of the customer.



5. Is there any difficulty faced by user while using broad band net connector?

The above trend indicates the degree of user friendliness of the broadband net connector.



6. Do you think that use of the broad band net connector improves your work efficiency?

The above trend indicates that the broadband net connector is improving work efficiency levels.



7. Would you recommend your existing brand to your family and friends?

The above trend indicates that only 56 % people are highly satisfied with their existing brand & they would like to recommend it to their family & friends.



Survey on the use of internet services (rural area)

1. Which Broad band Network you use?

The above trend indicates the percentage of the subscribers of varoius companies participated in the survey.




The above trend indicates degree of variations in the speed of net connector.

Only 23 % users are satisfied with the speed of their net connector.




The above trend indicates the satisfaction levels of the subscribers with their present net connector.



4. Parameters of customer’s satisfaction

The above trend indicates the parameters of customer’s satisfaction.

Feasible cost in the top priority of the customer.




The above trend indicates the degree of user friendliness of the broadband net connector.



6. Do you think that use of the broad band net connector improves your work efficiency?

The above trend indicates that the broadband net connector is improving work efficiency levels.




The above trend indicates that 63 % people are highly satisfied with their existing brand & they would like to recommend it to their family & friends.



ANALYSIS WITH RESPECT TO COMPETITORS

COMPETITION TRACKING-01

COMPARISON OF VARIOUS COMPANY OWNED RETAIL STORES

1. Outer appearance



The above trend indicates the outer appearance analysis of various company owned stores.

Vodafone along with Tata indicom scores high in this parameter.

2. Internal environment



This parameter indicates the internal environment of the stores.

Vodafone scores high due to following reasons:

o Automated token system.

o Automated payment system.

o Store ambiance was good.

o Peaceful environment.

o Soft background music.

o Attractive interiors.

o Active pantry.

3. Executive’s behavior



The above trend indicates the executive’s behavior at various stores.

I found that executives at Vodafone stores were more friendly & professional than other stores.

4. Executive’s knowledge



The above trend indicates the parameter of executive’s knowledge at various stores.

I found that executives at Vodafone, Reliance & Tata indicom were more knowledgeable, resourceful & active than other stores.

5. Problem solving approach



The above trend indicates that the executives at various stores were how much dedicated to solve customer’s problems.



6. Variety of plans (voice & data)

The above trend indicates the availability of variety of plans at stores AIRTEL scores high than other competitors in this parameter.



7. Communication skills

Vodafone’s executives scores high in the parameter of communication skills.



8. Handset availability



Reliance’s store scores high in this parameter as the stores are dealing in both CDMA & GSM

9. Over-all impact

10. O

Vodafone & Tata indicom stores score high in over-all impact as compare to other stores.



Comparison of Tata indicom store with OBR (open brand retail)

(The Mobile Store (TMH) & Hotspot Mobile Store)



THE MOBILE STORE is India’s first countrywide chain of telecom retail outlets. "The Mobile Store" is an Essar Group venture, set to introduce a pan-Indian network of retail telecom outlets. The Mobile Store offers a world class shopping environment, with state of the art technology.



The Mobile Store format is a one stop mobile solution shop that provides, multi brand handsets, accessories, connections, repairs, VAS etc. all under one roof.

The Mobile Store currently has more than 1050 outlets and the vision is to have a network of 2500 stores by 2010 across 650 cities, thus covering virtually every major town in every state across India.

The Mobile Store outlets are in three formats: Large - 1000-1500 square feet, Medium- 800-1000 square feet and Corner-150-200 square feet, with smaller formats located primarily in large malls.

Key thrust areas for the retail format are: Comprehensive Product Range, Knowledgeable Store Staff & Interactive Environment, Competitive Prices and Handset Repairs.

The Mobile Store caters to the Indian consumer's choice of the widest and most comprehensive range of mobile phones with special offers from all the key brands available across the globe. The Mobile Store offers complete telecom solutions right from handset purchase to the choice of service operator and miscellaneous services like monthly bill collections etc., the stores also offer connections (prepaid and postpaid), accessories and VAS including the latest ring tones, wallpapers and gaming and prompt after sales service, available not only in the city of purchase but in all The Mobile Store outlets across the country.

The Mobile Store has undertaken an extensive training program to equip all its employees with in-depth knowledge of the products and brands available at the store, thereby allowing them to provide the right kind of guidance to the customer.



All major handset brands like Nokia, Sony Ericsson, LG, Samsung, Motorola, Fly, Sagem, HP, iMate, Dopod, HTC and Blackberry are available at the store. The Mobile Store has also tied up with all leading operators including Airtel, Vodafone, BPL, Idea, MTNL/BSNL and Reliance, Tata Indicom.



Hotspot is, today, India’s leading multi brand retail chain in the technology space with wide presence across the country. Hotspot boasts of the widest range of mobile handsets, accessories and airtime options at competitive rates.

Hotspot outlets with their range of products and services have the capability to fulfill customers’ every need. At present, the product portfolio comprises mobile handsets, accessories, airtime connections, recharge vouchers, gaming devices and television services. Over and beyond this, Hotspot is all set to retail other related telecom products and services. Recently, Hotspot has launched its own range of accessories and its own service centers across the country in an effort to address customer issues effectively and efficiently.

Starting operations in 2005, with a small team of 15 people, Hotspot has come a long way. In less than 2 years, the Chain has grown exponentially. Today, it employs more than 2000 people. In the years ahead, the Chain is expected to play a leading role in enhancing the profitability of the group.

The growing demand for mobile devices, accessories and connections is expected to drive the number of Hotspot outlets to 1000 by the end of this year, and more than double by the next. What’s more, by the end of the



Financial Year 2009-2010, the numbers of Hotspot outlets are expected to go up to 3000.

Hot Spot serves as a platform to fill a void that exists in the Indian technology retail sector.The un-organized nature of technology retail, dominance of mom and pop stores, customer curiosity, continuous technological evolution in mobile devices and the emergence of mobile devices as mediums of entertainment has created a void between what the customer really wants and what’s available in terms of a “Customer Offering’.

The Product Portfolio

Mobile Phones – wide range and multi-brand Network connections and recharge options

Accessories – Memory cards, blue-tooth devices, headsets, screen protectors, phone covers, etc.

Value Added Services – Ring tones, Music downloads, Games, etcExchange offerings.

Other digital products – Digital cameras, I-Pods, PDAs, Gaming products.

Insurance, extended warranty, AMC, finances.

The Value Offering

Sales, After Sales and VAS

Competitive pricing enabled by volume economics and supply chain linkages.

Hot Spot has tie-ups in place with all major brands in Mobile Handsets: Nokia, Motorola, Sony, Samsung, Spice, LG, Fly, HTC.

Hot Spot also has tie-ups with all major airtime operators:Airtel, Vodafone, Idea, Spice, Reliance, Tata, Virgin.



Hot Spot is able to leverage these tie-ups to ensure delivery of quality products, experience and best value to the customer.

Launched “Hot Spot” branded range of accessories.

Hot Spot forms the missing link in the value map whereby customers can take advantage of a multi-brand retail environment and well trained staff, thus offering the customer the latest products in an informed selling environment.



A Tata Indicom exclusive store

Comparison between TMS, HOTSPOT & TTSL stores

Features Hotspot TMS TTSLAvg.no. of Agents in

Store 2 3 5Servicing Agents in

Store 1 2 4

Focus Handsets HandsetsConnections,

data



Product Knowledge(Plans From Operator) Average Good

Good

Communication & Soft Skills Average Excellent Good

Visibility of Merchandize Average Excellent Good

Present Offers NilSummer

carnival

Cricket theme, Add on

plan

Handsets pricing

Approx. 10 %Lesser

than TTSL

Low Varianc

e in pricing

As per M.O.P

Handsets range Large Very Large LargeLook & feel Average Very Good Good

Offer communication at THE MOBILE STORE



Competition tracking-02

The Competitor’s Trade Schemes Tracked:-

July’10:-

Competitor’s Trade Scheme Tracked – All Zones this week:-



Brand Scheme Eligibility (Points)

Airtel

5 Liter Water Camper 300 Points20 Gms Silver / 3 PC Carresrol / Steam Iron 650 Points

30 Gms Silver / Branded Ceiling Fan 1000 Points45 Gms Silver / Juicer Mixer Grinder 1500 Points

110 Gms Silver / HP Photo Copier F4488 3500 Points3 Gms Gold / 7.0 Mega Pixel Digital Camera /

Home Theater 5500 Points250 Gms Silver / Microwave 7500 Points

5 Gms Gold / Washing Machine / 19" LCD / HP Photo Copier 10000 Points

7 Gms Gold / 1.5Ton AC / Handy Cam 15000 Points15 Gms Gold / 32" LCD / Laptop 30000 Points

18 Gms Gold / Bike CD Dawn 35000 Points30 Gms Gold / Bike Honda Passion 55000 Points

50 Gms Gold 90000 PointsTATA Nano Car 125000 Points

MTS No such scheme tracked

Vodafone

Eveready Tourch 06 PointsVodafone Travel Bag 11 Points

10 Gms Silver / 10 Ltr Water Camper 21 Points15 Gms Silver 31 Points25 Gms Silver 51 Points40 Gms Silver 76 Points1 Gms Gold 101 Points

1 Gms Gold + 40 Gms Silver 151 PointsHong Kong Trip (4 Retailers) Highest Activation

TATA Indicom Dhoom Macha De* (Mentioned Separately)

RelianceNo Such Scheme Tracked -

IDEA Rajwada - 4th Scheme* (15 Points on every Activation & 03 Points on every Rs.100/- ER) (Mentioned Separately)

TATA Indicom Dhoom Macha De

Category 3 Mt Avg Activations (Base Slab)

Activation Target Incentive per Activation on all Actv.

Slab A Slab B Slab C Slab A Slab B

Slab C

A 0 0 1 to 3 4 to 7 Nil Rs.25 Rs.30B 1 <=1 2 to 5 6 to 8I 2 to 3 <=3 4 to 7 8 to 12II 4 to 6 <=6 7 to 11 12 to 16



III 7 to 10 <=11 12 to 16 17 to 22IV 11 to 15 <=16 17 to 22 23 to 32V 16 to 20 <=22 23 to 32 33 to 40VI 21 to 30 <=32 33 to 40 41 to 60VII 31 to 40 <=44 45 to 60 61 to 80VIII 41 to 50 <=54 55 to 70 71 to 90IX 51 to 75 <=84 85 to 100 101 to 125X 76 to 100 <=114 115 to 130 131 to 150XI 100 to 150 <=174 175 to 200 201 to 250

Trend of selling free prepaid connections-

• Airtel is selling free prepaid sim with balance of Rs.25

• Vodafone is selling free prepaid sim with balance of Rs.10



• Promotional activities



LAUNCHING A NEW RETAIL STORE

CONTENTS

1. Distribution channel of TTSL

2. Store location

3. Store branding

4. Deliverables to retailers by TTSL

5. Deliverables to TTSL by retailers

6. Launching a new store



1. Distribution channel of TTSL

Business Units

In order to understand the needs of the customers and serve their specific needs

well, TTSL has undertaken in-depth customer segmentation. This customer

segmentation has led to creation of the various Business Units like.

Access Business Units

Tata Indicom is India's leading standardized and branded private PCO service

provider with over 1 million PCO connections across India. The Tata Indicom SMART

PCO has been a pioneer in the PCO market. It has changed the face of business by

introducing innovative and technologically advanced solutions in the market such as

the standardized password protected billing machine, 16 kHz switch based billing,

ergonomic booth etc. It is the only company today that provides all the equipments

and support needed to run a PCO and is a “One Stop Shop for all PCO needs”.



TTSL Retail Business: Tata Indicom is today India's no. 1 retail chain

in terms of number of stores and it will be quite a while before anybody catches

up. Tata Indicom currently already operates its retail business nationally through

over 3300 outlets comprising of 600 TTSL owned stores and more than 2500

stores in the Franchisee format. Tata Indicom already covers the top 1000 towns

in India has more than 3300 Retail Stores all over India. This is the largest branded

retail presence amongst all telecom operators in the country and in fact, makes

Tata Indicom the largest retailer in India in terms of number of stores under one

brand name. The 2 retail formats which

existed earlier i.e. True Value Hubs and True Value Shoppes have both been brought

under one umbrella of Tata Indicom Exclusive Stores.

Consumer Market: The Consumer Market Business Unit (CMBU) deals with the large

and dynamic pre-paid segment of the telecom sector. Tata Indicom has always been

at the forefront of market innovation in this segment. Be it attractive bundled

packages (handsets + connections) or cheapest tariff plans, Tata Indicom have been

constantly re-inventing the market to fulfill its mission of empowering every Indian

to connect with the world affordably. Tata Indicom was the first to introduce a ‘first

of its kind’ offer - Non Stop Mobile in the Mobile prepaid market.

Enterprise: The Enterprise Business Service function drives business growth &

customer centricity by providing telecom related solutions to Corporate Entities. The

EBS function also undertakes customer relationship management and retention

along with revenue enhancement and channel management.

Emerging Business

High Net worth Individual



2. Store Locations



Location of various TATA INDICOM exclusive stores in Jaipur city

1. Vaishali nagar

2. DCM, ajmer road

3. Mansarovar

4. New sanganer road

5. Jhotwara

6. Tonk road

7. Malviya nagar



8. Rajapark

9. M.I.road

10. Sansar Chandra road

3. Store branding-



Store branding is done through various merchandizing materials:

o GSB’s (glow sign boards)

o Wall coverings

o Standees

o Canopies

o Catalogs

o Free bees



o Pamphlets

o Posters

o Live demo

4.Deliverables to retailers by TTSL-

o Store branding

o Regularly updating Merchandizing material

o Providing attractive profit margins

o Providing attractive sales incentives

o Offering better products & services

o Providing assistance & guidance

o Providing better after sale services

o Handling customer issues

o Dealing with stock issues

5. Deliverables to TTSL by retailers-

Retailers help in-

o Increase in revenue

o Capturing high market share

o Retaining the customer with the brand



o Communicating organization’s offers to the

customer

o Handling customer’s issues

o Building brand image

6. Launching a new store-

o Store location- Chaura Rasta, Jaipur

o Store type- Multi branded retail outlet

o Products & Services- Prepaid & postpaid mobile

connections ,internet ,recharge vouchers ,mobile handsets &

mobile phone repairing

o Various offerings by TATA INDICOM to the retailer-

Branding of the store with TATA INDICOM’s GSB’s & wall

coverings

Attractive profit margins in products as compare to the other

competitors.

Complete assistance & guidance about products & services.

Regular updates about offers & schemes.

Tips for more revenue generation.



o Store name-

I suggested a name for the store, which was approved by the

authorities.

I designed a logo for the store with the help of TTSL’s graphic

designer.

7. Present status-

The renovation process of the store is going on & it will be inaugurated very

shortly.



MAJOR FINDINGS

Churning in postpaid mobile connections is high; subscribers prefer to migrate to

pre-paid.

`Walk-in’ in stores routed more for service (bill

payment/recharge/complaints/enquiry) rather than sales.

Complaints majorly because of VAS charges.

Most of the customers compare TTSL’s voice products with Reliance & Data

products with BSNL & MTS.

Most of the customers prefer GSM rather than CDMA.

Some of the customers in rural areas complained about network coverage.

Huge rural market is untapped.

Customer service is low; most of them are dissatisfied with the after sales services

of the company.

AIRTEL is offering attractive plans & services & aggressively selling free prepaid

mobile connections.



RECOMMENDATIONS-

Company should launch attractive offers in post-paid mobile connections to

stop churning.

Company should improve after sales services.

Company should moderate the prices of pre-paid mobile connections as the

competitors are selling free connections.

Company should improve merchandizing as the retailers are not getting

regular updates & merchandizing material about new offers & schemes.

Company needs to establish more towers in rural areas to improve its

network coverage.

The employees can call back to customers at least once in a month for getting

the feedback of the services offered.

Company should introduce unlimited plans in photon+.

As photon+ is facing pricing challenge from MTS M-blaze; company should

decrease the price of photon+.

As MTS M-blaze is offering free surfing at various websites i.e. yahoo,

Wikipedia, make my trip.com: company should launch attractive offers with

photon+.



SWOT ANALYSIS



CONCLUSION

The project “Comprehensive marketing environment analysis with respect to

products, customers & competitors” & “launching a new retail store” provides

knowledge about trend of voice & data in rural & urban areas.

It describes the customer’s preferences with respect to usage & buying behavior. The

study emphases that a huge rural market is still untapped & there is a strong need to

improve the services in rural areas.

Survey of company owned retail stores highlighted the premier quality services of

Vodafone store through various parameters.

Competition tracking focuses on comparative analysis of major telecom players in the

market. Competition tracking was done on various parameters i.e. current offers,

marketing activities & trade schemes.

Comparison with open brand retail (OBR) provides knowledge about a new concept

of retail marketing.

Launching a new retail store describes the distribution channel & provides knowledge

about the deliverable from the both sides i.e. company & retailer.



BIBLIOGRAPHY

Websites

www.trai.gov.in

www.dot.gov.in

www.tataindicom.com

www.telecomwatch.in

www.telecomupdate.net

Books

Kotler, Philip. Marketing Management. 13th Edition; Prentice Hall of

India 2009.

Kothari, C.R. Research Methodology. Second Revised Edition; New Age

International (P) Publishers 2008

Reports

Tata Teleservices annual report



APPENDIXSurvey on the use of mobile network

Name …………………………………………… Contact No ……………………………………

Age …………………… Sex ………………… Address ……………………………………….

Occupation …………………………………… ………………………………………

1. Which mobile network connection do you use? ………………………………

2. How long have you been using this mobile network?

A. 1 year B. 2 years C. 3 years D. > 3 years

3. What influenced you to use this network?

…………………………………………………………………………………………………………………………………

4. Which network do you like to prefer?

A. GSM B. CDMA


A. Yes B. No

If yes, what disappointed you about the service? ……………………………………………………………………………

6. How many mobile connections do you have in your family?A. One B. Two C. Three D. > Three

7. You often use your phone to:A. Call B. SMS C. GPRS D. Multimedia

8. Buying a new mobile network connection, which feature is most important for you?A. Call rates D. Brand NameB. SMS pack E. Value added servicesC. Roaming charges

9. Are you satisfied with the services of your present mobile service provider?A. Yes B. No

Date: Signature of Customer

SURVEY ON THE USE OF INTERNET SERVICES


[Ty [Ty [Ty [Ty

[Ty [Ty

[Ty [Ty [Ty [Ty

[Ty [Ty [Ty [Ty


1. Which Broad band Network you use?A. RelianceB. TATAC. MTSD. BSNLE. IdeaF. Airtel


A. YesB. NoC. Some Time Fast And Some Time Slow


A. Highly satisfiedB. Moderately satisfiedC. Neither satisfied Nor DissatisfiedD. Moderately dissatisfiedE. Highly dissatisfied

4. What are the important features which satisfied the consumer provided by Broad band net connector?

A. Feasible CostB. High SpeedC. Easy to Use anywhere


A. YesB. NoC. Partially

6. Do you think that use of the broad band net connector improves your work efficiency?A. YesB. NoC. Partially


A. YesB. No

Survey on Telecom Stores



Name of the company- …………………………………………………

Store location- ……………………………………………………………...

1. Outer Appearance (10)-

2. Internal Environment (10)

3. Executive`s Behavior (10)-

4. Executive`s Knowledge (10)-

5. Problem solving approach (10) -

6. Variety of Plan`s (voice & data) (10) -

7. Communication Skills (10) -

8. Handset availability (10) -

9. Over-all impact (10) -



Documents

Comprehensive Marketing Environment Analysis