Marketing Management Idea Project

8/19/2019 Marketing Management Idea Project

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A PROJECT REPORT

ON MARKETING MANAGEMENT

OF IDEA CELLULAR LTD.

PROJECT REPORT

UNDER THE GUIDANCE OF

Mr. /Mrs.Jaideep Jejurikar

NOEL IN!TITUTE! OF "U!INE!! MANAGEMENT AND

RE!EARCH CHINCH#AD$ PUNE

!U"MITTED "%

PRADEEP J. JADHA

ROLL NO&

"ECHLOER OF "U!INE!! ADMINI!TRATION""A& '()(*'()+

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IN PARTIAL FULFILMENT OF RE,UIREMENT OF

"ACHELOR OF "U!INE!! ADMINI!TRATION -""A

!U"MITTED "%

Mr. PRADEEP.J.JADHA

-"ATCH*'()'*'()+

Uder 01e 2uida3e 45

Mr.!1ai6es1 Le6e Dipa6i C1a7a Jaideep Jejurikar

-Ass0. Dire304r -HOD -Pr4je30 Guide

I0era6 E8a9ier E80era6 E8a9ier

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ACKNO#LEDGEMENT

It is a proud privilege to express my profound sense of gratitude to the

following people who have helped me to complete this valuable project report.

I am highly thank to Mr.Anand T Mutha (ranch!Manager" of Idea #ellular $td

for providing me this wonderful opportunity to do the project in the organi%ation

and giving me constant guidance to complete this project successfully.

I wish to take the opportunity to express my gratitude towards Mr. &hailesh $ele

(Assistant 'irector of ovel #ollege of A ) #A" and *rof. Mr. +aideep

+ejurikar (Internal guide" who has provided me with constant guidance and support

throughout the project.

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DECLARATION

I, the undersigned Mr. Pradeep Jad1a7 hereby declare that the project on MARKETING

RE!EARCH OF IDEA TELECOMMUNICATION !ERICE! FOR IDEA$ ! CU!TOMMER has been

successfully completed in Idea #ellular $td. undertaken during the period of date of first visit to

last visit is the result of my own efforts and the same has not been previously submitted to any

examination of the *une -niversity or any other -niversity.

Mr. *radeep +adhav

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INDE:

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E:ECUTIE !UMMAR%

The next few pages of this report tell about one of the innovative firms in the Indian telecomindustry. I'A #ellular is a leading /&M mobile services operator in India with over 01 million

subscribers, under brand I'A. I'A #ellular is a publicly listed company, having listed on theombay &tock xchange (&" and the ational &tock xchange (&" in March2334. Afrontrunner in introducing revolutionary tariff plans, I'A #ellular has the distinction of offering the most customer friendly and competitive *re *aid offerings, for the first time in India.

Idea5s mission! 67e will delight our customers while meeting their individual communication needs anytime,anywhere.8 Idea5s mission tells us what they are and what they are doing at the present. Their values are Integrity, commitment, passion, seamlessness and speed are in perfect. Their valuesare in perfect sync with their mission because these values are of paramount importance for thesuccessful achievement of their mission. Idea5s &79T shows us that their parent company

(Aditya irla", existing footprint and that obsession for innovation are their major strengthswhile their concentration on a few circles, their late entry into many new circles and high debt!e:uity ratio can be cited as their weaknesses.

;alling regulations, growing rural market and 1/ services are the factors that bring newopportunities for Idea. ew entrants (ever increasing number of telecom operators in India" andnew technology (can be an opportunity as well" pose threats for Idea. xternal environmentanalysis shows that competitive rivalry is very high, bargaining power of customers is high, bargaining power of suppliers is low, threat from new entrants and substitutes are also high. Thisclearly reveals the fact that Idea is in an extremely competitive environment. .g. the ongoingtariff war in the highly competitive Indian telecom market has been taking new shape with every

passing day and it has reached new heights now. 9perators have been announcing new promotional schemes including reduction in tariffs for voice call, slashing roaming charges andmany more such lucrative offers.


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COMPAN% PROFILE

COMPAN% PROFILE

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ADITYA BIRLA GROUPS

IDEA CELLULER LIMITED

Idea Cellular Limited (Idea)

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"4ard 45 Dire304rs*

=. Mr. >umar Mangalam irla (#hairman"

2. &mt. apania (Managing 'irector"

TELECOM INDU!TR% IN INDIA

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The telecom industry is one of the fastest growing industries in India. India has

nearly 233 million telephone lines making it the third largest network in the world

after #hina and -&A. 7ith a growth rate of @0, Indian telecom industry has the

highest growth rate in the world .Much of the growth in Asia *acific 7ireless

Telecommunication Market is spurred by the growth in demand in countries likeIndia and #hina. IndiaBs mobile phone subscriber base is growing at a rate of

C2.2.#hina is the biggest market in Asia *acific with a subscriber base of @C of

the total subscribers in Asia *acific. #ompared to that India5s share in Asia *acific

Mobile *hone market is D.@.#onsidering the fact that India and #hina has almost

comparable populations, India5s low mobile penetration offers huge scope for

growth.

His04r; 45 Idia Te6e3499ui3a0i4s&

&tarted in =C0= when the first operational land lines were laid by the

government near #alcutta (seat of ritish power". Telephone services were

introduced in India in =CC=. In =CC1 telephone services were merged with the

postal system. Indian


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service in metropolitan areas. In =EE3s, telecommunications sector benefited from

the general opening up of the economy. Also, examples of telecom revolution in

many other countries, which resulted in better :uality of service and lower tariffs,

led Indian policy makers to initiate a change process finally resulting in opening up

of telecom services sector for the private sector. ational Telecom *olicy (T*"=EE@ was the first attempt to give a comprehensive roadmap for the Indian

telecommunications sector. In =EE4, Telecom


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Idea #ellular is a part of the -& K2@ billion Aditya irla /roup and a leading

/&M mobile services operator with licenses to operate in =1 telecom service areas

in India. The company has operations in 'elhi, ?imachal *radesh, erala with the planned expansion into Mumbai, ihar )+harkhand. Idea5s footprint will cover

nearly 43 percent of India5s telephony potential. Idea #ellular had =D.=1 Million

subscribers as on +une13, 2334, and had a market share of =0.@ percent as on +une

13, 2334 in its == service areas of operation.

His04r; 45 Idea Ce66u6ar Li9i0ed&

Idea #ellularGs history dates back to the year =EE0, when it was incorporated as

irla #ommunications &ervices The following year, the company entered into a joint venture with /rasim Industries and the global telecom giant AT)T. The same

year, its name was changed to irla AT)T #ommunications $imited. Amerger

with Tata #ellular $imited took place in 2333. In 2332, the company created the

brand BIdeaG and changed its name to Idea #ellular $imited. The same year it

launched operations in 'elhi and crossed the one million subscriber baseF in 2330,

it crossed the subscriber base of five million. In 233D, the Tata /roup transferred

all its shares to the Aditya irla /roup and the group became the largest

shareholder in the company. In 2334, Idea came with an I*9 and got listed on the bourses ! the same year it reached the subscriber base of D3million.

ENIROMENTAL !CANNING

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The marketing environment within which a company operates is dynamic. There

are two types of environment.

). Mi3r4 e7ir49e0

'. Ma3r4 e7ir49e0

=. Micro environmentJ

The micro environment is 6the forces close to the company that affects its ability to

serve its customers.8

2. Macro environmentJ

The macro environment is 6the larger societal forces that affects the whole macro

environment.8 The macro environment consist of six types of forces 'emographic,conomic, atural, Technological, *olitical and #ultural forces. A company5s

marketing strategy must take into account changes and trends in this environment

that can present opportunities or pose threats5 successful firm in one that regularly

modifies it marketing mix and strategies to adapt to these changes.

P46i0i3a6 Fa304rs&

eglected area has been non!existence of any guidelines for installation of towers

in every nook and corner of the country. In our endeavor to grow, proper attentionis missing for safety associated with towers. $ots of towers in India have been

installed on roof tops of weak and unsafe buildings. 'uring construction, hardly

anybody has planned for towers on roof tops.It are unexpected that the structure

feasibility of all buildings is undertaken before towers are installed. There are cases

where more than two or even three towers have been installed at a single location

ECONOMIC FACTOR!

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). I349e 2r4up&

ow a day, lower class people also use mobile phones. And idea sim card is

affordable by any class.

'. Pri3e e6as0i3i0;&

'emand of idea sim!card is increasing day by day so the price of idea sim card is

decreasing.

!43ia6 Fa304rs&

specially idea cellular provides many offers which attracts customer of all age

groups. ;or example, sms offers can easily attract youngsters. And people who are

using idea sim!card, can talk at very less call rate. &o most of people use this product.

L Idea cellular limited has many big names and good brand image so bulk of the

people use idea sim!cards.

L /ood advertisement always attracts people ) idea cellular limited introduces

new and attractive advertisement regularly and have celebrity as their brand

ambassador like Abhishek achchan, so it is a big factor.

TECHNOLOGICAL FACTOR!

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L Initially the memory of sim!card for contact saving was less, but now a days we

can get more memory in that.

L now there are facilities of /*


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!0ep )& De5ie 01e pr4>6e9$ 01e de3isi4 a60era0i7es$ ad 01ere sear31

4>je30i7es

There are many brands available in market like Airtel, Hodafone, Tata,


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!0ep '& De7e64p 01e resear31 P6a

The second stage of marketing research re:uires developing the most efficient plan

for gathering the re:uired information. This involves decision on the data sources,

research approaches, and research in strumpets, sampling plan and contactmethods. &o the research we will select :uestioner method i.e. we will prepare

:uestioner and do the research.

!a9p6i2 p6a&

After deciding on the research approach and instruments, the marketing researcher

must design sampling plan. These call for 1 decisions.

). !a9p6i2 Ui0& #14 s14u6d e sur7e;

In Idea #ellular the target consumer is the consumer of age between =D to D3 years.

'. !a9p6e !ie& H4 9a; pe4p6e s14u6d e sur7e;

In this step marketer decides from which area and number of sample they take for

research. ;or e.g. the researcher decides to take the sample of 233 respondents

from the society.

+. !a9p6i2 pr43edure& 14 s14u6d e 3144se 01e resp4de0s

After the researcher has decided the sample unit and sample si%e they should

decide how should be choose the respondents. There are two sampling procedure.

Pr4>a>i6i0; sa9p6e&

It means he gives e:ual chance to all the respondents.

N4 pr4>a>i6i0; sa9p6e&

It means une:ual chance to the respondent. And for the researcher non probabilitysample is easy to reach to the respondents for his research process. i.e. the

researcher select the most assessable population members.

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) D4 ;4u use a; 94>i6e p14es

es

o

' #1i31 349pa;s si9*3ard d4 ;4u pre5er 04 use

Idea

Airtel

Hodafone

&$


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es

o

@ D4 ;4u use Idea si9*3ards

es

o

B D4 ;4u a0 04 >u; Idea si9 3ard

es

o

#ant say now

#1i31 5a304r d4 ;4u 34sidered 1i6e >u;i2 Idea Ce66u6ar Li9i0edN

etwork

&chemes

rand image

#all #harges

If other than please specifyOOOO

Fr49 14 642 d4 ;4u use Idea si9*3ard

$ess than a year

= to 1 year

More than 1 years

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es

o

)) D4 ;4u 5a3e e04rk pr4>6e9 a; 0i9e

&ometime

ever

9ften

)' I 1i31 area 45 ser7i3e i idea si9*3ard d4 ;4u a0 04 i9pr47e

etwork

Puality

&chemes

#all #harges.

)+ D4 ;4u sa0is5ied i01 01e ser7i3e 45 Idea Ce66u6ar Li9i0ed

es

o

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9ne main reason for undertaking marketing research is to identify market

opportunities for our product. 9nce the research is completed, company must

forecast si%e, growth and profit for market opportunities.

P40e0ia6 Marke0&

*otential market is the set of consumers who acknowledge sufficient level of

interest in a market. &o many people use mobile phones and have interest in

purchase of new sim!card for new mobile phones as well as old mobile phones for

experience anew services and schemes. &o the potential market of idea cellular is

large.

A7ai6a>6e Marke0&

Available market is the set of consumers who have interest, income, and accessto particular offer. The price of idea sim!cardis reasonable with lower call rates and

new schemes. &o that customers attract from idea sim!card and so the available

marker of idea sim!card is large.

,ua6i5ied A7ai6a>6e Marke0&

Pualified available market is the set of consumer who have interest, income,

access and :ualification for the particular product. As the idea sim!card does not

re:uire any such :ualification so there is no need for the idea sim!card for thismarket.

Tar2e0 Marke0&

Target market is the set of :ualified available market the company decides to

pursue. The Idea #ellular &ervices might decide to concentrate its marketing and

distribution effort on particular area or particular villages where the network of

idea cellular is not available. &o the Idea #ellular decides to put its effort for Idea

#ellular &ervices in particular areas or villages.

ow a day Idea #ellular hasstarted to give new network towersin small villages for choosing their target

market.

Pee0ra0ed Marke0&

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*enetrated market is set of consumers who are buying the company5s product. As

the Idea #ellular made its effort on small villages and some particular areas and in

India most of the people especially young generation wants new schemes and less

call rates and also new sms schemes and Idea #ellular provides all these facilities

in lower cost as compare to other one. &o the penetrated market of the Idea#ellular is also large.

Es0i9a0i2 Curre0 De9ad&


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#ompanies face the problem of selecting the best territories and allocating their

marketing budget optimally among these territories. Therefore, they need to

estimate the market potential of different districts, towns, cities, states, and nations.

Two major methods of assessing area market potential are availableJ the market

builds up method, which is used primarily by business marketers, and the multiple!factor index method, which is used primarily by consumer marketers. The marketer

has decided to use Market!uildup Method as this method gives accurate result.

CON!UMER "U%ING "EHAIOR FACTOR AFFECTING TO

PRODUCT

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#onsumer behavior is the study of how individuals, groups, and organi%ation

select, buy, use and dispose of goods, services, ideas or experience to satisfy their

needs and wants. A consumer5s buying behavior is affected by cultural and social

factors.

Cu60ura6 Fa304rs& Cu60ure&

As in Idea *repaid &im!cards, the cultural factor is not affecting much.

!43ia6 36ass&

&ocial class includes lower class, middle class and upper class. This sometimes

affects the demand of the Idea *repaid &im!card, because these all categories

people mostly prefer Idea *repaid &im!card because of lower call rate in

reasonable charges. &o it affects to the demand of the Idea *repaid &im!card.

!43ia6 Fa304rs&

&ocial factors such as reference groups, family, and social role sand statuses affect

consumer buying behavior.

Re5ere3e 2r4up&

The reference group is that who connected or daily communicate with each other

like family, friends, neighborhood, relatives etc. &o because of this reference groupthey provide the information of Idea *repaid &im!card like services and other

facilities, by knowing some of the good features and services by reference group of

this product person can easily influenced by them and so that the demand of the

product also increase.

Fa9i6;&

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The family is the most important consumer buying organi%ation in society, and

family members constitute the most influential primary reference group. In family

if some one using the service of Idea *repaid &im!card than the other member5s is

influenced by the family members and also use the service of Idea *repaid &im!

card.

!0a0us&

9ne of the advertisement campaigns is

6An Idea #an #hang our $ife8

. ;rom this campaign many high level people and also politicians using Idea

*repaid &im!card because of adding value in their status. &o status also affect in

increasing in demand.

Pers4a6 Fa304rs& A2e ad s0a2e i 01e 6i5e 3;36e&

This affects much when student5s in their schooling they don5t want much

services and schemes in prepaid sim!cards, but after passing their schooling they

entered in college and so that at that time they wants more services and schemes in

reasonable price for connecting with friends and relatives or increase their

contacts. &o this factor is much affects on demand of Idea *repaid &im!card.

O33upa0i4 ad e3449i3 3ir3u9s0a3es&

This also affects the demand because in any occupation company have a more

contacts with customers, suppliers etc. so that they wants to connected with their

suppliers and customers and so that they want less call rate in reasonable price.&o

occupation and economic circumstances are also affects the demand of the Idea

*repaid &im!card.

Pers4a6i0; ad se65 343ep0&

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This has also affect on the demand of the Idea *repaid &im!card because a person

has its own view point of selecting the product and if does not like the Idea *repaid

&ervice he may switch over to the other prepaid sim!card.

$ifestyle and valuesJIt also affects the demand of the Idea *repaid &im!cards because person5s lifestyle

and its value play a great role in choosing any product.

IDENTIF% MARKET !EGMENT OF THE PRODUCT

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7e can segment any product into /eographic, 'emographic, *sychographic

and ehavioral. &o the market segment of Idea *repaid &im!card is as below.

Ge42rap1i3& Re2i4&

Idea /&M services are licensed in =1 circles of India, so that these services areused by people in different circles and also used by different region people.

Ci0;&

Idea *repaid &im!card is used in metro city, mega city and also in small villages

because of reasonable prices and also offered many schemes for people in less

monthly rental.

De942rap1i3& A2e&

Idea *repaid &im!card is used by age group of =0 to 00years. ow!a!days this

prepaid service is also used by below this age group

Fa9i6; sie&

7e can also segment our product based on family si%e because if the family si%e is

large and if they are using more mobile phones in family for connected with each

other then they also using prepaid services.

I349e&

Income is not much affects in segmenting the market because price of Idea *repaid

is reasonable and the lower class people also afford it.

O33upa0i4&

9ccupation also affect in segmenting the market because Idea *repaid sim!card is

only not used by lower class and middle class people but also used by higher class

people who have their own business.

Edu3a0i4&

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ducation does not affect the segment of the Idea *repaid &im!card because Idea

*repaid &im!card has been used by educated people as well as uneducated people.

Ps;3142rap1i3&*Li5es0;6e&

$ifestyle also affects in segmenting the market. &o the marketer while segmentingthe market of Idea *repaid should keep this in his mind, because high class people

also using this service.

Pers4a6i0;&

*ersonality does not affect the Idea *repaid &ervice in segmenting his market.

"e1a7i4ur&

ehavior does not affect in segmenting the market.

!ELECTED "RAND ELEMENT FOR PRODUCT

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There are six main criteria for choosing brand elements. The first three!

Memorable, Meaningful, and likeable are 6brand building8. The latter three are

Transferable, Adaptable, and *rotectable are 6defensive8.

Me94ra>6e&

?ow easily is the brand element recalled and recogni%edN

Idea #ellular is having a reputed telecommunication &ervice and having a good

logo. Idea #ellular &ervice has a good punch line

6An Idea #an #hange our $ife8 and 6;or the *eople, y the *eople8

7hich is very easy in recall it.

Meai25u6&

Is the brand element credible and suggestive of the corresponding categoryN

Idea #ellular &ervice is having a punch line

6An Idea #an #hange our $ife8

Means new ideas gives you new life for enjoyment and success.

Lika>6e&

Idea *repared sim!card liked by most of the people and most of the people wants to

use it because of good service provide by them in affordable price.

Adap0a>6e&

Idea #ellular &ervice is providing two services i.e. prepaid and postpaid. &o when

people can here these two services of Idea #ellular then they easily recall the name

of Idea #ellular &ervice.

DEELOPMENT OF PRODUCT LIFE C%CLE

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I0r4du30i4& In the initial stage Idea #ellular was introduced in all the major

cities of India. There were many competitors in the tele!communication business,

which provided the line!based #onnection and wireless connection whereas Idea

#ellular provided the wireless connections to the customers. &o profits are

nonexistent because of the heavy expenses on giving schemes of service

introduction. In the case of Idea *repaid &ervice as it was introduced in the year =EE0 so it was the introduction stage.

Gr401& In the growth stage, the Idea #ellular sales started growing. And the

profits also started rising. Idea *repaid &ervice growth stage was year 2332

because by the 23325s, Idea *repaid got the = million subscribers, and in 2330 it

crossed 0 million subscribers.

Ma0uri0;&

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Idea #ellular is right now in the maturity stage, because they have got most of

the market share. There has also been an increase in competitionF new companies

like


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'ifferentiation is actually differentiating the market offering to create superior

customer value, once a company has chosen desired position it must take strong

strips to deliver and communicate that position to target consumers. The company

entire marketing program should support the chosen positioning strategy.

Idea #ellular has differentiation its products by doing different activities as

followsJ

S *rice affordability

S ?ire famous personalities

S 9nly company offers package for ladies

S


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Marketers have traditionally classified products on the basis of durability,

tangibility and use (consumer or industrial". ach product type has appropriate

marketing!mix strategy.

Dura>6e ad 0a2i>i6i0;& Dura>i6i0;&

Idea *repaid &im!card is durable goods because it is not purchased by the buyers

on regular basis.

!er7i3es&

&ervices are intangible, inspirable, variable and perishable products. As a result

they normally re:uired more :uality control, supplier credibility and adaptability.

As in Idea *repaid &ervice they provides HA& (Halue Added &ervice",


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a A0 1a0 s0a2e i 01e 6i5e 3;36e is 01e pr4du30

Idea #ellular is right now in the maturity stage, because there has also been an

increase in competitionF new companies like #1a0 is i0s 3urre0 pri3e

The current price of Idea *repaid &im!card is


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In this channel first manufacture produce the sim!cards and then they sent to the

wholesaler as per the order. 7holesalers send to the retailers and shopkeepers and

then lastly retailer sales to customer.

*-$$ &trategy is develop by the Idea #ellular. As Idea #ellular is very known

brand and is punch line is

6;or the *eople, y the *eople8 and 6An Idea #an #hange our $ife8

7hich is verygood that5s why *enetrated Market consumer know about thatand

they ask about Idea *repaid &imcardsN

DI!TRI"UTION !TRATEG%

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There are three types of distribution strategies.

). E836usi7e dis0ri>u0i4

'. !e6e30i7e dis0ri>u0i4

+. I0esi7e dis0ri>u0i4

E836usi7e Dis0ri>u0i4&

xclusive distribution means severely limiting the number of intermediaries. It is

appropriate when the producer wants to maintain control over the service level

)outputs offered by the resellers ) it often includes exclusive dealings

arrangement by granting exclusive distribution, the producer hope to obtain more

dedicated ) knowledgeable.

!e6e30i7e Dis0ri>u0i4&

&elective distribution relies on more than few but less than all of the intermediaries

willing to carry a particular product. It makes sense for established companies

seeking distributors.

I0esi7e Dis0ri>u0i4&

In intensive distribution the manufacturer places the goods or services in as many

outlets as possible. This strategy is used for items such as snack foods, soft drinks,

newspapers, candies etc.

Dis0ri>u0i4 !0ra0e2; 54r Idea Ce66u6ar&

7e will use selective distribution. It involves the use of less intermediaries who are

willing to carry the particular product. It can gain ade:uate market coverage with

more control and less cost.

Ad7er0ise9e0 45 Idea Ce66u6ar L0d.

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MARKET !HARE

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Share

Idea

Vodafone

Airtel

BSNL

Aircel

Reliance

Uninnor

LIMITATION OF THE !TUD%

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This study is done in the few areas of that5s why it will not give the clear pictureof the thinking of mobile subscribers about the company and its products.

L $imited database and short time span for the project.

L $ack of professional approach since researchers are student.

FINDING! AND !UGGE!TION!

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S*eople are known to the I'A #$$-$A< $T'. and its services but still

14 of the people use Idea 12 use Airtel =E use Hodafone, around =3


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RECOMMENDATION!

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S&hould enhance its distribution system.

S&hould increase its coverage area.

S&hould become more customer!friendly.

S&hould plan to grow its market share.

CONCLU!ION

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#ommunication strategy of idea is very good because most of the people are

well known to the service by idea .eing new to telecom industry, people are not

confident to go for it. Also, competitors of idea are very much powerful in

communicating as well as providing the service.

And one thing which is focused is that the rand Ambassador also plays an

impotent role in catching the attention of the customer because most of the people

reported that they liked Abhishek acchan more than &ariya &aran

"I"LIOGRAPH%

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"44ks&*

Marke0i2 Maa2e9e0 >; P1i66ip K406er

Marke0i2 Maa2e9e0 >; Raja !a8ea

Marke0i2 Resear31 >; C. R. K4001ari

Marke0i2 Resear31 >; Tu66 ad Hakis

Marke0i2 Maa2e9e0 >; "i6ap "4se

#e>si0es&*

.idea3e66u6ar.349

.24426e.34.i

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