Rural Mobile service

8/14/2019 Rural Mobile service

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Prepared by:

Nilesh Kumar SoniMBA 2nd sem A

Rural Mobile Marketing

1 [email protected]


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Indian Telecom - Scenario

India Fastest growing market in World more than 242 mn subscribers4th largest mobile market growing at 8

mn Sub/month

A one per cent increase in ruralconnectivity can generate 0.5 per centeconomic growth.Paying highest taxes and regulatory

charges; Variable License fee, spectrumfee etc. Rs. 145 billion per annum.rural subscribers formed a formidable

block of 21.31% or over one-fifth of the

total mobile user base in IndiaNext 250 mn users who will o [email protected]


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Mobile subscriber base in India

3 [email protected]


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Rural-Urban divide

Rural Urban

Mobile Phones 0.01 75.685

Fixed lines 13.9 36.988

Private OperatorShare

0.01% 53.54

PCOs Approx 20 Lakh Approx 35 Lakhs

Total no. of phones Approx 14 mn Approx 112 mn

Teledensity Approx 2% Approx 31%

Teledensity Targets 15% (by 2007) 43%

Source: Gupta Rahul. (2006). Rural India Calling. Voice andData. June.

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Telecom giant Bharti Airtel is the flagshipcompany of Bharti Enterprises.

Airtel comes to you from Bharti AirtelLimited, Indias largest integrated and the

first private telecom services provider witha footprint in all the 23 telecom circles.

The businesses at Bharti Airtel have beenstructured into three individual strategic

business units (SBUs) Mobile Services,Airtel Telemedia Services Enterprise Services.

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Market Share in GSM

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Be Global Act Rural.Airtel has devised business plans for

growth in the rural areas as it aims toincrease its reach to majority of thevillages. Presently it covers three lakhvillages out of six lakh villages.

Sanjay Kapoor, joint president, mobility,Bharti Airtel, agrees with the trend andsays his company had enjoyed a growth of166 per cent in June of 2005-06 in circle C

towns, as compared to a growth of 65 percent in metros.

Infrastructure development (networkconnectivity) in rural areas Airtel is

investing $1.5 billion, for chhattisgarh Rs.8 [email protected]


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Services

Marketing channels serve the following:

2.Make the product or service available tothe customers in their geographic vicinity.

3.Make the service more widely availablewithout greater business capital.

4.Develop and put into effect promotionalefforts

5.Gather data about the current and potentialcustomers, competitors and otherimportant players who shape the marketplace.

6.Provide local knowledge for dealingeffectively with customers in line with localexpectations and practices.

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R t t t t


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Reta er: as a route to t erural Market

The task before the marketer are:To ensure that the product reaches the rural

retail markets to stockTo motivate the retailer in rural markets to

stock a product or a brandImportant influences on distribution:Purchase behavior of consumersCharacteristics of retailers and

Behavior of the channel.

10 [email protected]


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Objective of the ProjectA comprehensive study of Scope and

Potential of Tele-Retail solutions in ruralmarket of Durg District with specialreference to Airtel has followingobjectives:

To study and measure the potential of

mobile service market in rural areas ofDurg district.

To measure and spread of the awarenessabout the brand Airtel.

Approaching existing and new customersand providing them services by appointingnew retailers for Airtel.

Finding new retail solutions with respect to

meeting the requirements of ruralcustomers.11 [email protected]


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Sample Design:Universe- Rural area of Durg district.

Sample unit- shop owners in rural areas ofDurg districtSampling frame- Customers identification

form (for existing mobilecustomers) and census 2001 for non

customers.Sample size- 300Sampling technique- direct interview

methodMethod of data collection-Primary data will be collected through a

questionnaire which is mixture ofdichotomous & multiple choice answers.

Provision for indications of uncertainty will bemade because rural eo le ma not be able12 [email protected]


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Issues in Rural Marketing:Availability the first A is about making the

product reach the consumers and in thecase of telecom services studies haveshown this to be the biggest barrier to be

overcome .Acceptability issues would include issues

needed to be addressed to improve thewillingness to consume, distribute or sell a

product.



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Continued:

Affordability issues in telecom would

include two sets of issues the first being a fixed cost and an initial

barrier for a villager to start with the serviceneeds to be brought down and many

companies including the market leader Nokiaare working on low cost handsets which couldbe of use in rural areas. The second component of recharge also

needs to be tailored according to the needsof rural masses.

The last A, Awareness is linked to theissues of promotion of telecom services inrural areas.



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Findings:

82% of the respondent said, there is no

retailer of Airtel in their village. Soappointment of new retailers is necessary.

Life time validity SIM is more popular thannormal SIM.

Small amount top-upcoupons(Rs.10,24,55) are more popular.

Average monthly usage is at the lower side.

Airtel have 27% market share in rural areaof Durg district

Main Reason for dissatisfaction is due tonetwork problem.

33% respondent(mobile users+non users)16 [email protected]


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Suggestations:Appointment of the new retailers where

their own store transactions are more.Small recharge coupons should be in

sufficient quantity in the retail shelf.

The promotion of the services also needs tobe adapted to the village environment; thelanguage and means of communicationused should be in the local language.

Bundle offers (handset+sim) should bepromoted to lessen the affordability issue.

Low cost handset from Airtel should beavailable on the retail stores.



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Documents

Rural Mobile service