Consumer Behaviour Study on Mobile Users-Shrigouri Honnakatti-04105

7/29/2019 Consumer Behaviour Study on Mobile Users-Shrigouri Honnakatti-04105

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A PROJ ECT REPORT ON

CONSUMER BEHAVIOUR STUDY ON MOBILE USERS

A Project Report submitted to MPBIM Bangalore in partial

fulfillment of the requirement for the award of

MASTER OF BUSINESS ADMINISTRATION (MBA)

M P BIRLA INSTITUTE OF MANAGEMENTASSOCIATE BHARTIYA VIDYA BHAVAN

APRIL-MAY 2006

SUBMITTED BY, UNDER GUIDANCE OF,SHRIGOURI.M.HONNAKATTI PROF.RAMGOPALIV SEM, 04XQCM6088


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STUDENT DECLARATION

I hereby declare that the project titled A CONSUMER

BEHAVIOUR STUDY ON MOBILE USERS , submitted in partial

fulfillment of the requirement for the award of the degree of Masters in

Business Administration, is an original work by me and not submitted

for the award of any Degree, Diploma, Fellowship or either similar

titles or prizes of any other institute or university.

SHRIGOURI.M.HONNAKATTI


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ACKNOWLEDGEMENT

It is my privilege that I had been given the opportunity to

complete my project titled CONSUMER BEHAVIOUR STUDY ON

MOBILE USERS , as a part of my syllabus of the post graduate

Programme conducted by The M P BIRLA INSTITUTE OF

MANAGEMENT, BANGALORE.

I would like to express my gratitude to the Principal

The M P BIRLA INSTITUTE OF MANAGEMENT

DR.NAGESH.MALVALLI for supporting me for the completion of this

project.

I would like to covey my sincere thanks to Prof.RAMGOPAL my

project guide who had made sincere efforts towards the guidance and

completion of this project.

SHRIGOURI.M.HONNAKATTI


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CHAPTER I

INTRODUCTION OF

THE COMPANY


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HISTORY OF THE COMPANY

Hutchison Essar

A joint venture between Hong Kong-based Hutchison Whampoa and Ruias-owned Essar Telecom, had acquiredBPL mobile companies in a 1.15 billion dollar mega deal that included EssarSpacetel, which the two promoters were to fund jointly along with externalbank borrowing.

When contacted bothHutchsion and Essar teleholding officials confirmed the discussions with theconsortium but did not reveal the amount of bank finance, saying the deal of1.15 billion dollar was structured to have a debt component and thetransaction may be completed next week.

Asked if Essar Telecom is exploring the option of going for

private placement of equity with a US-based bank, Essar telehoding officialssaid "no".

In September this year, Hutchison Essar hadentered into an agreement to acquire BPL mobile (Mumbai circle) and BPLCellular (Maharashtra, Kerala and Tamil Nadu) from the Essar group foraround 1.15 billion USD.

In July, the Ruia-managed Essargroup bought a controlling stake in BPL Communications for aconsideration of over Rs 4,400 crore. BPL Communications owns a 74 percent stake in BPL Mobile Communications having operations in Mumbaiand 100 per cent ownership of BPL Mobile Cellular with operations inMaharashtra and Goa, Tamil Nadu and Pondicherry and Kerala.


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Essar Spacetel has applied forlicences in seven circles not presently serviced by Hutch Essar in North EastIndia. Hutch-Essar had to pay 6 million USD to Bur Essar Spacetel fromEssar.

Hutchison Essar is in themidst of restructuring including pruning its brands. The company plans tophase out its Orange brand in this financial year and consolidate all itsoperations, including that of the acquired BPL communications and BPLmobile, under the Hutch umbrella.

Earlier this month, the Rs 20,000-crore Essar groupentered into an understanding with Max Telecom ventures to acquire thelatters 3.16 per cent stake in Hutchison Essar Telecom.

The all-cash deal will see Essar groups

holding in Hutchison Essar, its joint venture with Hutchison TelecomInternational, go up from 30.42 per cent to 33.58 per cent.

With this acquisition, Hutchison-Essar would haveservices in 21 circles and the combined subscriber base of Hutch-Essar andBPL would be over 11 million.

"Their aim is to become the leadingTelephony Services Provider in the region. This and Essar groups otherplans in the telecom sector will gives them a pan India footprint and makesthem a significant player in this business, the company had said.(PTI)


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Close to 400 retail outlets in Mumbai, spanning entertainment,cinema food, and lifestyle, have signed up to participated in Hutch Tuesday.


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Hutch Essar New launches

Hutch Tuesday

ActiveMedia Technologys RAPOS m-couponplatform delivers customized offers to Hutch subscribers acrossentertainment, cinema, food and lifestyle retail partners

Mumbai, May 15, 2006:ActiveMedia Technology is working with Hutchison Essar to deliver theHutch Tuesday programme, a newly launched two-for-one privilegesprogramme set to be the biggest mobile marketing project of its kind inIndia.

The programme which gives Hutch subscribersaccess to exclusive offers across retail partner in Mumbai will be poweredby Active Media Technologys RAPOS (redemption at point of sale) mobilecoupon platform.

.

Under the terms of the privileges program subscriberswill receive exclusive two-for-one offers on a Tuesday and other ancillaryoffers the rest of the week to be redeemed at participating stores.

ActiveMedia Technologyspatent pending RAPOS real-time m-coupon authentication technologywill power the initiative. The technology includes an m-couponauthentication and redemption application preinstalled on customizedhandsets located at participating retailer partners.


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To use the service Hutch customers

text the short code 123, call the Hutch voice portal on 123500 or visitPlanetHutch (WAP site) to download a m-coupon in the form of a SMS. Themobile voucher is then presented at the point of sale at the participatingoutlet and the special offer is redeemed.

ActiveMedia Technology powers similarprogrammes globally and was chosen as Hutchs partner in India due to itsunmatched expertise in the field of mobile coupons and loyalty initiatives.

Naveen Chopra, ChiefMarketing Officer, Hutchison Essar, said Hutch Tuesday is anotheradvantage that our customers get from being on the Hutch network. While itbenefits our customers with good bargains, it also helps our retail partners toincrease traffic on otherwise lean Tuesdays. We are delighted to join hands

with ActiveMedia Technology and power this initiative of ours withRAPOSTM to deliver and track the m-coupon in real time.


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Hutchison Telecom Reports Robust Growth for SixMonths Ended 30 J une 2005

Key highlights-- Group operating profit increased 297.6% to HK$1,014 million

-- Turnover rose 56.1% to HK$10,757 million-- Consolidated mobile customer base increased 30.9% to 14.1 million-- Increased integration in Hong Kong businesses operationally and with

management appointments to drive synergies Indonesia and Vietnam commence initial phase, CEOs appointed

Financial highlights

First half First half Change2005 2004

HK$'million HK$'million( unaudited) (audited)

Turnover 10,757 6,891 56.1%Operating profit beforedisposal ofinvestments and others 1,014 255 297.6%Profit (loss) attributable to

equity holdersof the Company (352) 793 (144.4%)Earnings (loss) per share HK$(0.08) HK$0.18 (144.4%)Adjusted loss per share* HK$(0.01) HK$(0.11) 90.9%

* excluding profit (loss) on disposal of investments and others


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CUSTOMER BASE AND GROWTH OF THECOMPANY

Hutchison Telecommunications

International Limited ("Hutchison Telecom", the "Company"or the "Group".

The Group's underlying operating profit before disposal of investmentsand others reached HK$1,014 million, a 297.6% increase compared with thefirst half of 2004, boosted by strong operating results in India and Israel anda reduction of losses in Thailand.

All markets reported

growth in customer base, which rose overall by 30.9% to 14.1 million. Thevigorous growth in worldwide customer base fuelled the surge in theGroup's turnover to HK$10,757 million, an increase of 56.1% comparedwith the same period a year earlier.

During the first half they consolidated theirIsrael subsidiary, Partner Communications Company Ltd. ("Partner") for thefirst time. Excluding the impact of the consolidation of Partner, turnovergrowth was 25.4%.

EBITDA increased 84.8% to HK$2,831 million and EBITDA

margins 26.3% from 22.2%. The Group recorded a loss attributable toequity holders of the Company of HK$352 million, or HK$0.08 loss pershare, after it took a net loss on disposal of investments and others ofHK$295 million, finance costs of HK$612 million and a taxation charge ofabout HK$318 million.

During the first half of 2005, the Group strengthened its operations witha number of key strategic initiatives to build Hutchison Telecom into aleading provider of telecommunications services in Asia and developingmarkets elsewhere. These included expansion into Indonesia and Vietnam;

reorganisation of the Indian operations; increasing ownership in existingoperations in Israel and in the Hong Kong fixed-line business; and the saleof the operations in Paraguay.

The Group is now well-positioned in its markets and today we alsoannounce changes in senior management to capitalise on these opportunities.


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Peter Wong, Chief Executive Officer of Hutchison GlobalCommunications Holdings Ltd ("HGCH"), will assume responsibility forboth the fixed-line and mobile businesses in Hong Kong, whilst Agnes Nardiwill take up the new position of Executive Director, to help drive growthopportunities in our developing markets.

Dennis Lui, Chief Executive Officer, Hutchison Telecom, said:"Their focused strategy of investing for growth is clearly reflected in ourexcellent performance in the first half. I am particularly pleased to seesatisfying operational momentum in our key markets of India and Israel."

Mr Lui added: "Going forward, we will continue todrive our strategy of expanding in emerging mobile markets with high

growth potential, such as India, Vietnam and Indonesia, while maintainingour leading position in Hong Kong's mobile and fixed-line markets."

Tim Pennington, Chief Financial Officer, HutchisonTelecom, said: "Our revenue and profit growth demonstrates the strength ofour operations. We will continue to strengthen our competitive positionwith further investment in growth markets, while continuing to driveinitiatives to control costs to further enhance financial performance andorganisational efficiency."

Key markets review

India

-- Customer base increased 46.8% to 8.4 million-- Turnover increased 46.5% to HK$4,694 million

-- EBITDA increased 66.7% to HK$1,579 million

The India business continued to go from strength tostrength despite continued competition in the market and some downwardpricing pressure.


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Customer base in the first half increased 46.8% to 8.4million, compared with 5.8 million a year earlier. In Q2, average revenueper user (ARPU) was INR554 compared with INR568 in the previousquarter, despite tariff reductions and stiff competition in the domestic longdistance call market.

The EBITDA margin rose to 33.6% from 29.6% a year earlier,reflecting the improved operating performance of the Group's neweroperations and better costcontrol in all operations.

Hong Kong and Macau

-- Turnover of HK$3,263 million-- EBITDA of HK$680 million

On a combined basis, turnover from Hong Kong represented30.4% of Group turnover.

Hutchison Telecom has completed the privatisation ofHGCH. Holders of over 99% of HGCH shares not held by the Groupelected to swap HGCH shares for Hutchison Telecom shares. This will

result in a dilution of Hutchison Telecom's issued share capital of 5.3%.

Hong Kong and Macau mobile

-- Customer base increased 5.3% to 2.2 million 3G customers surged 272% to 351,000, representing 15.8% of totalHong Kong customer base

-- Turnover increased 5.5% to HK$1,845 million-- EBITDA increased by 7.6% to HK$380 million


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Hutchison Telecom continued to be the largest operatorin Hong Kong in terms of the number of mobile customers. 3G customersnow represent approximately 15.8% of the total customer base and weexpect this trend to continue with the introduction of our prepaid 3G cards inMay 2005.

They continued to see an increase in turnover due to stronggrowth of the 3G customer base. Their 3G customers have higher ARPU.We, like the rest of the market, are seeing signs of pressure on 2G revenuesas a result.

The rise in EBITDA was driven mainly byhigher revenue and cost-saving initiatives announced in early 2005.EBITDA margin for the period also increased to 20.6%, compared with

20.2% in the same period last year.

Hong Kong fixed line

-- Turnover increased 15.5% to HK$1,418 million-- EBITDA decreased 12.5% to HK$300 million

The Group, through Hutchison Global CommunicationsLimited ("HGC"), operates one of the largest fibre-optic building-to-the-building telecommunications network in Hong Kong. We have 274,000residential voice subscribed lines and 194,000 residential broadbandsubscribed lines.

The increase in turnover was mainly driven by growth ininternational and local voices services, local data services and residentialbroadband services.

EBITDA decreased 12.5% to HK$300 million, mainly dueto one-off items affecting 2004 and 2005 results.

To accelerate the growth potential of services business inHong Kong, Alcatel and HGC have signed a business agreement in whichHGC agrees to transfer to Alcatel certain of its engineering and operations


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services that support HGC's telecommunications network in Hong Kong.The co-operation will enable HGC to focus on new market opportunities andto reinforce the Group's leading position in Hong Kong.

Israel

-- Customer base increased 9.4% to 2.4 million-- Turnover increased marginally to NIS2,511.3 million (about HK$4,300

million) EBITDA grew 5% to NIS420.8 million (about HK$720 million)

On April 20, the Group's stake in Partner increased to 52.2% as a resultof Partner's share buyback, making it a subsidiary of the Group.

Customer base rose 9.4% to 2.4 million, demonstrating Partner's ability tocontinue to grow its business in a highly competitive market.

Thailand

-- Customer base increased 27.6% to 676,000-- Turnover decreased 7.9% to HK$556 million LBITDA narrowed by a significant 29% to HK$76 million

Prepaid customers represented 51.5% of the totalcustomer base, up from 19.1% a year earlier. The fall in turnover was duemainly to the increase in the proportion of prepaid customers, who typicallyhave significantly lower average revenue per user.


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Losses narrowed significantly to HK$76million due mainly to cost-saving initiatives and the reduction in customeracquisition costs.

Other markets including Sri Lanka, Ghana, Paraguay and CorporateOffice

-- Combined customer base increased 103.4% to 332,000-- Turnover increased 18.5% to HK$128 million LBITDA was HK$81 million, compared to HK$4 million in the

same period

last year

The Group's operations in Sri Lanka, Ghana and Paraguay contributed tothe success of the business. The increased turnover reflected the growth incustomer base, especially through customer acquisition in Sri Lanka.

The sale of our operations in Paraguay was completed in July.

Indonesia

In July 2005, the Group completed itsacquisition of 60% of PT Cyber Access Communications, being renamed PTHutchison CP Telecommunications ("HCPT" or "Hutchison TelecomIndonesia"). HCPT is one of only two mobile operators in Indonesia thatholds a combined nationwide 2G and 3G mobile telecommunicationslicence.

The Group completed the acquisition forUS$120 million in July and has brought in management team members tobegin the next phase of investment and construction of a world-classnetwork. Mr Laurentius Bulters, the former director of operations at PT

Telkomsel in Indonesia, has been appointed as Chief Executive Officer ofHCPT.


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Vietnam

Hutchison Telecommunications (Vietnam) S.a r. l. ("HTV" or "Hutchison

Telecom Vietnam"), a wholly owned subsidiary of the Company and HanoiTelecommunications Joint Stock Company in February received a 15-yearinvestment licence from the Ministry of Planning and Investment ofVietnam to permit them to engage in business co-operation. Nortel hascommenced building a nationwide CDMA2000-based mobiletelecommunications network under a turnkey contract. Mr Matthew Lam,who was the project development director at Hutchison Telecom, has beenappointed as the Chief Executive Officer of HTV.

New accounting standards

In 2005, the Group changed certain accounting policiesafter adopting new revised Hong Kong Financial Reporting Standards andHong Kong Accounting Standards (the "new HKFRS"). This change is inaccordance with the Hong Kong Institute of Certified Public Accountants'policy of pursuing full convergence with International Financial ReportingStandards and interpretations established by the International AccountingStandards Board.

The adoption of the new HKFRS from 1 January 2005 resulted indecrease of HK$24 million in the profit attributable to equity holders for thesix ended 30 June 2005 and a decrease of HK$149 million in openingreserves at 1 January 2005.


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KEY PERFORMANCE INDICATORS

Q2 2005 Q1 2005Cust omer 30 J une 2005 31 Mar ch 2005Base Post - Pr e- Post - Pr e-

Tot al pai d pai d Tot al pai d pai dCount r y ( ' 000) ( ' 000) ( 000) ( ' 000) ( ' 000) ( ' 000)

Hong Kong( i ncl Macau) 2, 226 1, 316 910 2, 204 1, 291 913

I ndi a 8, 441 2, 364 6, 077 7, 798 2, 265 5, 533

I sr ael 2, 409 1, 690 719 2, 372 1, 666 706

Thai l and 676 329 348 662 344 318

Ot her s 332 293GROUP MOBI LE TOTAL 14, 084 13, 328


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CORPORATE PROFILE

Hutchison group is one of the largest cellular operators in India &

among the worlds leading telecommunication companies. Hutchison

Telecom is a part of Hutchison Whampon Limited (HWL), a Hong Kong

based fortune 500 company operating in 41 countries spread across the Asia

pacific region, Europe & America.

Hutchison Telecom is recognized as one of the first cellular

operators in the world. Having started its services way back in 1985, today it

is one of the largest companies listed on the Hong Kong stock exchange.

Its a network that offers better coverage wherever you all the

time. A cellular service provides that gives easy access to a range of vale

added services from National & International facilities.

Hutch has more than 8 million subscribers.


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HUTCH IN INDIA

Hutchison Telecom operators its cellular services in seven important telecom

circles in India.

Orange in Mumbai,

Hutch in Gujarat, Kolkata, Andhra Pradesh, Delhi, Chennai, Karnataka,

Hrayana, UP(E), UP(W), Rajasthan, Punjab, Rest of Bengal

Hutch brings the best of mobile telephone to the country at the

most affordable rates. The Murchison covers almost 25% of the national

footprint & 50% of National purchasing power, with the subscriber base that

now exceeds 2 million.

Location of Head office:

Hutchison Max Telecom Ltd.

Stanrose House

New Prabhadevi Road

Mumbai - 400 025.

Board No.- +91224314000

Website: www. Hutch.co.in


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HUTCH IN KARNATAKA

As in all others telecom circles Hutch brings you the best

network & coverage you can get wherever you go.

In Bangalore alone, they have installed over 180 towers to

facilitate better communication & coverage. So whether you are sitting

inside the swanky restaurant in the city or roaming into a remote village in

the state you will always stay connected.

Hutch in Karnataka is part of the Hutchison network the second

largest cellular service provider in India covering over 25% of Karnataka.

Hutch has got Karnataka covered with 62 towns connected by

over 400 towers.


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CHAPTER II

ABOUT HUTCH


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AS A HUTCH CUSTOMER

Mission Statement:As Hutchison their philosophy is simple To provide superior

mobile communication services across the country at affordable

rates

Benefits of Hutchison Networks

Enjoy free incoming calls from any mobile phone in India.Make mobile-to-mobile STD calla @ just Rs.2.99 per minute.Get the lowest flat roaming rate @ just Rs. 1.49 per minute

when you roam into any of our partner network across the

cellular footprint of India No matter what tariff plan youre on

SMS for Rs. 1.49 while roaming as well.

SMS free at the rate of Rs. 1 per day.Customer also enjoys a host of premium value added

services. These include national & International roaming facilities

spanning over 100 countries & 1200 cities. Towns & high ways in

India, Infotainment services

From Hutchalive, SMS based service, voice messaging service,

voice response service, voice-mail, fax & data services, Unifiedmessaging service in Karnataka to name a few Internet Access on

Hutch phone, send or receive phone messages, Hutchworld

features.


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All these features give3n by Hutch network has made

the customers feel more satisfied.

ABOUT HUTCH

A network that offers better coverage wherever you are

all the time.

A cellular service provider that gives you easy access to a range of

value added services from National & International roaming

facilities on postpaid & prepaid, a range of infotainment services

on Hutchalive, to SMS & voice-bsed services, plus free incomingcalls from Mobile phone & Mobile to mobile STDs rates at just

Rs. 2.99per minute.

All this & more to make your communication experience simple,

pleasurable & fun!

At Hutch, you will not just find a cellular service provider but a

partner whos there to take care of all your mobile communication

needs all the time.

Hutch has various lookouts:

Buy Hutch Why Hutch ? Hutch at your doorstep Phone care Hutch shopTale shop Hutch services


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Hutchworld Hutchalive


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BUY HUTCH

Whether you want to go on prepaid or postpaid,

subscribing to Hutch is simple, convenient & affordable.When you want to buy a Hutch simcard just step into any

of the dealers of Hutch and you can walk away with your simcard happily.

As Hutch marketing is done very effectively in all parts

of Karnataka by no reason there will be delay to get simcards.

So because of their efficient service networks more &

more people think of joining the group of Hutch family.

You have ways to buy hutch, just log on into the

Internet www.Hutch.co.in & go to Hutch at ur doorstep & going over

through a brief procedure you can get over to buy hutch.

WHY HUTCH ?

Over 8 million people across the nation have chosen to speak

hutch.

Here why.Hutch at ur doorstep

Have your Hutch simcard delivered right at your doorstep.

Find a dealer

Find a Hutch prepaid or post paid dealer in your area.
http://www.hutch.co.in/http://www.hutch.co.in/


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Phone Care.

Get handy tips to keep your handset in perfect condition.

Hutch prepaid

No monthly Bill. Just refill your talk time when you need to and

enjoy

A range of Services

SMS

Call management services

Hutch alive

Hutch on line

Voice messaging service

Roaming on Hutch prepaid.

All these facilities for just Rs.249/- after activation up to the date

of validity.

Hutch post paid

From valve for money talk plans to valve added service, plus a

host of payment choices Hutch postpaid has it all.

Main highlights.

SMS as much as you want absolutely free at the rate of Rs.1 per day

Send and received photo messages.

Access the internet.

MSN @ Hutch, Hotmail & messenger now only on your Hutch

phone.


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Hutch at your Doorstep

Going hutch is now even more comfortable, easier & hassle

free.

You dont even need to step out of your home or office. If you stay in

Bangalore, Dharwad, Hubli, Mangalore or Mysore simply give them your

details & select a time & date most convenient to you. They will deliver

your hutch simcard right at your doorstep provided you leave your address

with some security for your address. By Internet select city & area &leave

address by giving any of the securities.

Identity card of any Institution. License Ration Card Passport Electricity billTelephone bill Or any other.

Hutch shop

Its your one-stop for everything you want to know about

Hutch.

Hutch shop is a friendly place where you can shop easily & its an place to

solve your problems & subscribe for hutch connection.


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Teleshop

Teleshop is also same as Hutch shop where they provide details

about the telephonic information required & telecommunication.

Phone Care

Here the Hutchison provides by their eminent service at phone

care. Where there are number of tips to take care of you mobile phone.

Problems & solutions for them are provided for the customers.

And also the different range of new mobiles in the market & their

features are also given.


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HUTCH SERVICES

FUN WITH SMS

Sure SMS is a great way to stay in touch, but sometimes e-

cards can more effectively convey what you always wanted to say. Spread

Hutch e-cards & let people Known your thinking of them. You can choose a

whole lot of image from your card box whatever the occasion. So you can go

on, take your pick right now.

Greeting options:Hello

Happy Birthday

Congratulations

Thinking of your hope your having fun

Good luck

Missing you

Thanking you

Sorry

Love you.

Language SMS

You can send SMS in Hindi, Kannada, Tamil & many

morelanguage.

MSN @ hutch

You can Hotmail & MSN messenger from your hutch phone.


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Yahoo! Messenger

You can chat with your Yahoo!buddies from your hutch

phone

Yahoo! Mail

You can check your Yahoo mail from your hutch phone

Chat

You can have fun chatting with up to 10 people at a time.

Ring tones & logos

Download goodies & let your hutch phone reflect who you are.

Flash & blink

The new & innovative way to send special SMS messages

which is present in Hutchalive & Hutch world.

Group messaging

SMS all your friends at one go and save time.

FINANCE

Stocks

Get latest stock quotes & new stock Exchange rates directly.

Mobile banking

Bank through phone in over 90 countries world wide.

VOICE SERVICES

Voice response service


Voice mail service


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CRICKET

Up dates of all cricket scores every time needed when there are

live matches.

EASY 2 GET INFORMATION:

Hutch alive

News

Dictionary

Astrology

City guide

Travel

Sports

Trivia

Health

ENTERTAINMENT :

Hutch cellular service also provides entertainment service like.

Jokes

Games

TV Schedules

Movies

MORE SERVICES

Call management

Itemised billing

Fax & data


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Unified Messaging service

HUTCH PREPAID

Hutch prepaid customers are all very much satisfied with the

service provided by the Hutchison Network. They have various benefits &

features like.

Recharging : For every 30 days until the validity is over. At the

first recharges the customer is given with more benefits like talk time free

etc.

Charges:

Value added services

SMS

CALL management service

Hutch alive

Hutch Online

Voice response service


Voice mail service

Roaming on Hutch prepaid.

POSTPAID

Post paid is also another feature or service provided by Hutch

where the consumer has to do the billing at the end of every month.

Postpaid offers services like.

Talk plans

Whether you like to use your phone sparingly or just cant seem

to do without it, they have a host of talk plans that fit the usage & budget of


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consumers. You can pick from nominal airtime rates to even free outgoing

calls!

To compliment these talk plans they have services like Hutch

world &the Hutch alive will make your mobile experience more enjoyable.

Talk 150

Talk 249

Talk 349

Talk 399

Talk 599

Talk 999

Talk 1699

HUTCH WORLD

Hutch world the fun begins here.

Send or receive photo messages

Access the Internet

Ring in polyphonic ring tones

Get cricket, Astrology, News & more

Play hi-end games.

Hutch world also includes

Demos

Photo messaging

Games

Polyphonic ring tones

FAQs


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Phones

Settings

Subscription

HUTCHALIVE

Hutch alive is also another feature provided by Hutch those who

avail the hutch alive simcard can get the following benefits.

You get Flight updates to mobile banking to sending voice

messages & more.

You can access all that you want, right from your hutch phone.

Internet on Hutch phone ring tones, logos & more Send an hutch e-card Talk plans Hutch @ ur doorstep Hutch world Music cards on VRS Send your own own musical greetings MSN @ hutch Hotmail & Messenger


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ROAMING :

Roaming is same for prepaid & postpaid customers.

It is classified into 4 zones.

Zonal roaming

National roaming

International roaming

Setting up roaming

BILLING FOR POST PAID

Hutch also brings you convenient payment choices to help you

pay your hutch postpaid bills easily.

Payment choices:

Bill pay by SMS

Easy pay

Cash

Cheque

Credit card

ECS

Internet/Telebanking.

List of calls is also given with the billing.

Hutch helps us to keep track of all the calls we make &

receive on our hutch phone complete with date, time duration & cost.

Every call you made & received

Origin of the call

Numbers to which the calls were made

Duration of each call

Toll charges


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Airtime charges

Total cost per call

Just you have to pay a monthly rental of Rs.50/- only for a

complete itemised bill or get an itemised bill of your STD, ISD & roaming

calls by paying a monthly rental of Rs.25/- only.

MY HUTCH

This is an added feature to Hutch.

Bills on the web.

Downloads

Contact us

Feedback

If any problem arises you can contact the toll free number &

get it solved or contact customer care.

Feedback is also got by the Hutchison Network to modify &

create a better telecommunication network all over.

Fee back details

First Name : ---------------------------------

Last Name : ---------------------------------

E-mail ID. : ----------------------------------

City : ----------------------------------

Ph No. : ---------------------------------


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Feedback : ---------------------------------

Problem : ---------------------------------


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CHAPTER-III

MARKET RESEARCH

STUDY


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EXECUTIVE SUMMARY

Hutch in Karnataka is part of the Hutchison Network the second largest

cellular service provider in India.

The reason to choose Hutch was to know the market share of Hutch withIts competetiors in the local market & as it has taken an upward direction toreach higher sales in last three months as compared to other private cellularservice providers.

The Primary objective of this research was to know the market share ofHutch & what preference do the customers give while buying any simcards.

The methodology adopted for the Research was Descriptive Researchwith non probability sampling. The respondents were met personally & thedata collected was primary data by Disguised structured questionnairemethod (enclosed). Convenience sampling method was used to coverdifferent regions of local market i.e., including Airtel, BSNL, Hutch, Spice,Reliance & TATA Indicom.

As this was a disguised survey we could make out the loopholes of thecompetitors of Hutch. And by the survey we could make out that the leading

competitor is Airtel cellular service.

The survey was conducted for 15 days and the analysis & interpretationwas done further by consolidating the data into coding sheet (enclosed) theresults of analysis are as follows. The marker share of Hutch is 15% withAirtel 33% & BSNL 23%, Hence market is captured by Airtel. Hutch hasgot a good response from its customers from last 3 months. The salesincreased upto 55%.

Consumer buying behaviour of Hutch customers was considered & theygave first preference to Network coverage followed by price & offers. TheHutch customers were mainly influenced by its impressive advertisementsi.e., of respondents. And 55% of respondents are moderately satisfied withthe facilities provided by Hutch. Hence Hutchison cellular service should tryto extremely satisfy the customers by providing good network coverage &clarity.


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Among 60 respondents 23%respondents considered Hutch as an alternative mobile service while buying& Hutch customers considered Airtel i.e., 44% respondents. When asked toHutch customers which would they recommend to their family/friends tobuy the results were Hutch i.e., 44% of respondents & overall other simcardsowners said they would recommend Hutch upto 18% of respondents.

The main feature liked by Hutch customers are good facilities ofTalktime, other additional facilities like Hutch alive & Hutch world.

The Hutch customers are extremely satisfied with the advertisements &offers provided by Hutch Services.

By the survey the hutch marker is captured by the age group of 16-25.

Hence Hutch can create advertisements & Offers, which will be liked bythis age group.

Recommendations include to widen the Network coverage in rural areas& improve the lines, more towers & signal improvement for fasterconnectivity. More transparency is needed for service & pricing.

The fun doesnt stop here. Theres more when you joinHutch.


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MARKET RESEARCH STUDY

Techniques used in Market Research

The methodology adopted is listed in short below.

Data : Primary

Type of Research : Descriptive Research

Data collection : Questionnaire method personal interview

Sampling : Non probability sampling

Sampling method : Convenience sampling

Place : Bangalore

Method : Questionnaire method

Degree of Disguise : Disguised

Degree of Structure : Structured


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CONSUMER RESPONSES OBTAINED DURING

THE RESEARCH

Hutch

- Hutch network provides very Good offer -- Rajeshwari Shetty

- Network to be improved -- Rahul K. Wadia

- Good facilities of Talktime & SMS -- Prakash Hiremath

- Everything is Fine but we have still more hopeson Hutch service -- Mr. A.S. Inamdar

- Easy availability of SIMCARDS -- S. Mehta

- Widen the network across the country -- Abhishek. Inamdar

- Always network is found busy! It should beimproved -- Shewta P. Chadralimath

- Good Customers service & additional featuresprovided to Hutch postpaid customers -- Harish

- Advertisements are very impressive and themeschosen are excellent and liked by all -- Santosh


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METHODOLOGY

Research Design:

Marketing Research was done on consumer behaviour towards

all mobile service providers in the city mainly to know the market share of

different service providers i.e.,

Hutch, Airtel, BSNL, Spice, Reliance & Tata Indicom.

Problem definition :

The Research was basically done to know the market share of Hutchconsumer.

No of respondents : 60

Statement of Research :

The main objective of this Research is based on problem definition

in the local market & to know the drawbacks or loopholes of its competitors.

Also to get proper feedback for Hutch to improve the features &facilities to capture a wider market.

Design of Data Collection Process:

Structured disguised questionnaire was drafted & each respondentwas met personally to collect the responses.


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Selecting sampling scheme and size:

Non Probability sampling method was used as per the

convenience to cover areas of Bangalore.

Organizing field work:The survey was conducted at different locations for 15 days. To

cover most of the consumers using mobile. To get correct responses & the

problems arising with different mobile service providers.


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ANALYSIS AND INTERPRETATION

After completion of field survey, the data was gathered and transformed

into coding sheet (enclosed).

The questionnaire includes 11 questions (enclosed). The analysis of each

question, findings and conclusions are as follows.

1. Do you think using a cellphone or Mobile phone is a symbol ofstatus?

This question was prepared to know the mind set of mobile users whether

using mobile phone expressed their status.

Among 60 consumers all have responded to this question.

Findings:

Yes - 18 - 30%

No - 42 - 70%


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Conclusion:

As majority of respondents i.e., 70% have said No to this

question.

We can conclude that respondents use mobile not for

expressing their status & sophistication but as it has become a necessity

of life.

Also 30% of respondents say it paves a way for status.

2. Do you think cellphone is really necessary for you in your routinelife.

The question was mainly formed to know the necessity of

mobile by the users. As now-a- days every youth has the urge to own mobile

phone & by the survey we can make out that using mobile phone is a basic

need or just a want.

All 60 respondents have answered to this question.

Findings:

Yes - 57 - 95%

No - 03 - 05%


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Conclusion :

As 95% have responded yes & i.e., really necessary for them in

their routine life. They have explained that mobile is an great help as they

can take right decision at right time & also its an privilege to them.

And 5% who have responded No i.e., really not necessary at all

in the category of teenagers.

3.Your mobile service provider is

This is the most important question which brings out the market

share of Hutch & its competitors.

All 60 respondents have responded to this question.

Findings:

Airtel 20 - 33.3%

BSNL 14 - 23.3%

Hutch 09 - 15%

Spice 07 - 11.66%

Reliance 09 - 15%

TATA Indicom 01 - 01.66% PREFAC


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Conclusion :

The market is captured by leading mobile service in India i.e., Airtel.

In local market also it captures almost 33.3% of market share.The second in the list is BSNL, BSNL share in the local market is

23.3% .The third in the local market is Hutch & Reliance which has 15% of

total market share.And the forth is Spice telecom which as 11.66 of market share & the

fifth place is Tata Indicom which has a very low market share of 1.66%.


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4. From how many years you have been using this sim?This was the question for all the mobile service providers. But

analysisIs done for only Hutch respondents to know from when Hutch had its moresales.Findings:

All 9 respondents of Hutch have responded to this question.

3 months 5 -- 55.55%

6 months 2 -- 22.22%1 year 1 -- 11.11%2 Year - -- 0%more than 2 years - -- 0%

TIME TAKEN FOR SALES


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Conclusion :

As 55.55% of sales of Hutch have taken place in last 3 months itsgoing to slowly increase in the coming days also. As seeing to others mobileservice Hutch & Reliance have taken a steep high curve in sales than others

in the last 3-6 months.

The sales of other simcards has reduced as compared to theirearlier sales.

BSNL simcards are also in great demand now also but thereis no easy availability in the market.

5. While purchasing sim what all factors do you consider?This question was added as to find out the preferences given by

the customer while buying a simcard. The respondents were asked to giveranking to all the options as per their buying behaviour.

Findings :

Overall for al mobile service providers.

1st preference - Network Coverage - 35 respondants

2nd preference - Price - 17 respondants


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3rd preference - Features - 16 respondants

4th preference - Offers - 00 respondants

5th preference - Recharge currency - 15 respondants

6th preference - Companys reputation - 11 respondants

Only Hutch customers :

1st preference - Network coverage

2nd preference - Price

3rdpreference - Offers

4th preference - Features

.5th preference - Companys reputation

6th preference - Recharge currency

Conclusion :

After seeing the results of survey the consumer buying

behaviour changes from person to person but more average results werebrought in to light. The customer gives first preference to Network coveragefollowed by price, Features, Officers, Companys reputation & rechargecurrency.


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A customer while buying will mainly consider the networkcoverage, price & offers provided than the companys reputation & rechargecurrency.

So Hutch can make a greater market share by providing thesefacilities to the customers satisfactorily i.e., especially Network coverage &still better offers to divert the consumers mind from other competitors ofHutch.

6. Who/what influenced you to buy this sim?This question was added to know who or what created more impact

on the customers mind while buying simcard.

Findings :

For overall mobile service providers.

Friends - 21 - 35%

Advertisement- 13 - 21.66%Family 11 - 18.33%Companys reputation- 10 - 16.66%Dealers- 5 - 8.33%


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Hutch only :

Advertisement - 4 - 44.44%

Companys reputation - 2 - 22.22%

Friends - 2 - 22.22%

Family - 1 - 11.11%

Dealers - 0 - -


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Conclusion :

By seeing overall 60 respondents they are mostly influencedby friends & then followed by Advertisement, Family, Companysreputation then dealers.

But as far as Hutch customers are concerned they areinfluenced more by Advertisement i.e., 44% of respondents are influencedby advertisements of Hutch. Hutch advertisements are more impressive &attractive to the customers which attract & influence them to go for Hutch.

7.To what extent are you satisfied with the facilities provided byyour present simcard or mobile service provider.

Findings :

All 60 have responded to this question.

Only for Hutch.

satisfied 3 - 33.33%

Extremely satisfied 5 - 55.55%

Dissatisfied 1 - 11.11%


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Extremely Dissatisfied - -

Conclusion :

As 55.55% of respondents are moderately satisfied with HutchService they have to improve their facilities mainly Network coverage tosatisfy more & more customers.

Also 11.11% are moderately dissatisfied with services ofHutch. They should try to solve their problems as soon as possible & win agood public image and also brand loyalty of customers towards Hutch.


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8. Which was the alternative mobile service you considered whilebuying.

Findings :

Hutch was considered as alternative mobile service while buyingby 23.33% of customers.

Hutch customers considered alternative mobile services like

Airtel - 44.44%

BSNL - 22.22%

Spice - 11.11%

Reliance - 11.11%

Conclusion :

Hutch was considered by 23.33% of customer but switchedover to other brands due to some advantages or influenced by others.

Hutch customers mainly considered Airtel i.e., 44.4% respondents whilebuying Hutch as alternative & switched over to Hutch as it had new offers &newly added features, which attracted them to buy Hutch.


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9 Which Sim or Mobile service would you recommend yourfamily/friends to buy.

Findings:

Airtel 17 - 28.33%

BSNL 24 - 40%

Hutch 17 - 18.33%

Spice 1 - 01.66%

Reliance 4 - 06.66%

TATA Indicom - 1


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Only Hutch respondents :

Hutch respondents would recommend for

BSNL - 33.33%

Hutch - 44.44%

Spice - 11.1%

Reliance - 11.1%

Conclusion :

Hence in overall market the customer would recommend BSNLwhich has

40% of respondents, then Airtel 28% & then third Hutch i.e., 18%

As far as Hutch customers are concerned they would like torecommend

Hutch preferably than others i.e., 44.4% of respondents. As it avails goodoffers & value

added features.


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10. What is the main feature you liked in this mobile service.

This was an open ended question where in the respondentswere free

to express their views about their mobile service provider.

Findings :

Good facilities of Talktime SMS are free to the same network & 100 per month to

other networks.

Additional facilities in prepaid & postpaid hutch services. Easy availablility.

Offers provided by Hutch services like family & Friendsgroup.

Conclusion :

As Hutch customers are almost 5 satisfied with thefeatures & facilities the main feature liked by the customers are its offers,schemes, value added talktime & easy availability of simcards.

In order to increase sales Hutchison should maintain good relationship withcustomers by providing them a better service & new attractive offers &advertisements which is the main strength of Hutch.


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RECOMMENDATIONS

1. widen the Network coverage to improve fast connectivity.2. Improve the customer care service.3. As the Network is found all the time busy it should be improved with

more lines, towers & signal improvement.

4. More transparency needed for service & pricing.5. Tariff to be improved to attract customer i.e.. Especially for

roaming facilities.

6. To maintain their reputation of impressive advertisement & newoffers as many customers have chosen hutch because of its

advertisements & special offers like more others in mobile service

Providers as per the survey.


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APPENDIX

1. Questionnaire on consumer Behaviour on mobile users.

2. Coding sheet.


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BIBILOGRPHY

1. Marketing ResearchMeasurement & Method

- Donald S. Full & Hawkins2. Website :

www. Hutch. Co.in

www. Hutchcare, Kar@ Hutchindia.com.


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PREFACE

The study title consumer Buying Behaviour is a personal research study

The whole of the study is divided into three parts.

- Introduction of the company- About Hutch- Market Research Study

In the first unit of the study there is a general introduction of the company

and what are the present condition & achievements.

The second unit is a total study of the hutch & its management with its

network, services, newly added features & others.

The third unit relates to consumer buying behavior as a specialization

followed by survey this part is concluded with recommendations on the

subject.


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Documents

Consumer Behaviour Study on Mobile Users-Shrigouri Honnakatti-04105