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A
                   PROJECT REPORT

                             ON




“Employing      the potential of Retail chain distribution
                  of Tata Tele Services
                In partial fulfillment in award of PGDM
                Two Year Full Time Programme




                                   COMPANY GUIDE
FACULTY GUIDE
                                   Mr. Neeraj Agrawal
Mr. VIPUL SIR                       Assistant manager
                                   Sales & Marketing
               SUBMITTED BY
             TARA CHAND SAINI
                         PGDM 4TH SEM (2009-2011)
     PRESIDENCY INSTITUTE INTERNATIONAL MANAGEMENT


                                                             1
PREFACE


The successful completion    of this project was a unique experience for me
because by visiting many place and interacting various person ,I achieved a
better knowledge about sales . The experience which I gained by doing this
project was essential at this turning point of my carrer this project is being
submitted which content detailed analysis of the research under taken by me.
The research provides an opportunity to the student to devote his/her skills
knowledge and competencies required during the technical session.




ACKNOWLEDGEMENT



I express my sincere gratitude to my industry guide Mr. Neeraj Agrawal,
Assist .manager – Sales & Marketing, Tata Teleservices Limited for his able
guidance, continuous support and cooperation throughout my training,
without which the present work would not have been possible.
I would also like to thank the entire team of Tata Teleservies Limited, for
their constant support and help in the successful completion of this
project.




Last but not least I would like to thank to all those who have directly or
indirectly helped me in successful completion of my training.




                                                                               2
CERTIFICATE OF ORIGINALITY



I, Tara Chand Saini S/o Shri Paras Ram saini, having Roll no. 1031 of Batch
2009-11, do hereby certify and declare that this research report titled
employing the potential of Retail chain distribution of Tata Tele Services
  Is the result of my own work? This report contains no materials or
information which has been previously submitted for any other academic
diploma or degree, except where indicated otherwise.


Date :                                                        Signature of the
student :
                         APPROVAL PAGE


This report, entitled, employing the potential of Retail chain
distribution of Tata Tele Services, prepared and submitted by, Tara
Chand Saini, in partial fulfillment of the requirements for the
degree of PGDM is hereby accepted



                                                               Mr. Vipul
                                                            (Faculty Guide)




                                                                             3
TABLE OF CONTENTS
S. No.   PARTICULARS                     PAGE NO-
   1     INTRODUCTION OF COMPANY         5-9
   2     CELLULAR TECHNOLOGY             10-15

  3      LIST OF DOCUMENTS               16-17
  4      HANDSETS                        18-19

  5      ADVANTAGES                      20-23

   1.    INDIA TELECOM MARKET            24-30
   2.    INTRODUCTION TO THE INDUSTRY    31-39
   3.    MARKETING STRATEGY              40-48
   4.    BRAND AMBASSADORS & AWARENESS   49-54
   5.    RESEARCH METHOLOGY              54-57

   6.    DATA ANALYSIS                   58-65

   7.    CONCLUSION                      67-68
   8.    SWOT ANALYSIS & BIBILIOGRAPHY   69-71




                                                    4
INTRODUCTION TO THE COMPANY




                                                          Sir Ratan Tata
   Jamsetji Nusserwanji Tata                               (1871-1918)
         (1839-1904)




      Sir Dorabji Tata                                         JRD Tata
                                                              (1904-1993)




TATA Group




Major Milestones


Year   1903: Started India’s first chain of luxury hotels with The Taj Mahal
               hotel in Mumbai.
Year 1907: Pioneered India’s steel industry with Tata Steel set up in
               Jamshedpur.
Year 1910: Started first power plant in India.
Year 1932: Pioneered civil aviation in India.


                                                                            5
Year 1945: Led commercial vehicle production.
Year 1968: Led India’s first software development company.
Year 1998: Launched India’s first passenger car.

The Tata Group comprises 93 operating companies in seven business sectors:
information systems and communications; engineering; materials; services;
energy; consumer products; and chemicals. The Group was founded by Jamsetji
Tata in the mid 19th century, a period when India had just set out on the road to
gaining independence from British rule. Consequently, Jamsetji Tata and those
who followed him aligned business opportunities with the objective of nation
building. This approach remains enshrined in the Group's ethos to this day.



The Tata Group is one of India's largest and most respected business
conglomerates, with revenues in 2004-05 of $17.8 billion (Rs 799,118 million),
the   equivalent   of   about   2.8    per   cent   of   the   country's   GDP.
Tata companies together employ some 215,000 people. The Group's 32 publicly
listed enterprises — among them standout names such as Tata Steel, Tata
Consultancy Services, Tata Motors and Tata Tea have a combined market
capitalisation that is the highest among Indian business houses in the private
sector, and a shareholder base of over 2 million. The Tata Group has operations
in more than 40 countries across six continents, and its companies export
products and services to 140 nations




About TTSL


Tata Teleservices is part of the INR 76,930 Crore (US$17.10 billion) Tata Group,
that has over 90 companies, over 220,000 employees and more than 2 million
shareholders. With an investment of over INR 9,000 Crore (US$ 2 billion) in
Telecom, the Group has a formidable presence across the telecom valuechain.



                                                                                  6
Tata Teleservices spearheads the Group's presence in the telecom sector.
Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile
services     in       India   with     the   Andhra      Pradesh       circle.


Starting with the major acquisition of Hughes Tele.com (India) Limited [now
renamed Tata Teleservices (Maharashtra) Limited] in December 2002, the
company has swung into expansion mode. Tata Teleservices operates in 20
circles i.e. Andhra Pradesh, Chennai, Gujarat, Karnataka, Delhi, Maharashtra,
Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal
Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya
Pradesh and West Bengal. The investment in Tata Teleservices Limited
(including Tata Teleservices (Maharashtra) Limited) as of March 2005 totals INR
14,446             Crores            (US$        3.21           billion)


Having pioneered the CDMA 3G1x technology platform in India, Tata
Teleservices has established a robust and reliable telecom infrastructure that
ensures quality in its services. It has partnered with Motorola, Ericsson, Lucent
and ECI Telecom for the deployment of a reliable, technologically advanced
network.


The company, which heralded convergence technologies in the Indian telecom
sector, is today the market leader in the fixed wireless telephony market with a
customer base of over 2.8 million for the period ended September05.


Tata Teleservices' bouquet of telephony services includes Mobile services,
Wireless Phones, Public Telephony Booth, and Wireline services. Other services
include value added services like voice portal, roaming, 3-way conferencing,
group             calling        and           data          services.


The company has launched Prepaid FWP and Public phone booths, a range of



                                                                                 7
new handsets, new voice & data services such as BREW games, picture
messaging, polyphonic ring tones, interactive applications like news, cricket,
astrology, etc. These are in addition to its existing services of Postpaid Mobile,
Prepaid              Mobile             &              Postpaid             FWP.


Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra)
Limited serve more than 7 million customers in 1700 towns and aims at 4000
towns by March'06. With an ambitious rollout plan both within existing circles and
across new circles, Tata Teleservices is offering world-class technology and
user-friendly services in 20 circles.


Values

    Fairness through meritocracy.
    Trust based on accountability.
    Tenacity for results.
    Pioneering spirits.
    Excellence in execution.
    Leadership with humanity.


Mission

To empower every Indian to connect with the world affordably.


Vision
Trusted service 100 million happy customers by 2011.


 The sectors, in which the TATA GROUP is into, are
the following, namely:
Agricultural appliances (Tata Agrico), agrochemicals (Rallis), books(Tata
Mc Graw Hill), cellular products and services(Tata Indicom), ceramics (Tata


                                                                                8
Ceramics), charter flights( Taj Air), cooling appliances(Voltas), credit
cards(Tata Sons), fertilizers(Tata Chemicals), financial services(Tata Asset
Management, Tata Investment Corporation), food products(Tata tea, Tata
coffee),   garments and home products(Westside), holiday homes, home
appliances(Tata    BP   Solar),   hotels,      fertilizers   (Tata   chemicals),
insurance(Tata AIG Life Insurance, Tata AIG General Insurance), jewellery(
Tanishq), multi utility vehicles and passenger cars (Tata Motors),
telecommunications(Tata Indicom), watches (Titan) etc.

The board of directors comprises of

Mr. Ratan N. Tata
Mr. N.A. Soonawala
Dr. J.J. Irani
Mr. J.K.Setna
Mr. V.R.Mehta (Institutional Representative)
Mr. R.Gopalakrishnan
Mr. Nusli N.Wadia
Mr. Helmut Petri
Mr. S.A.Naik
Mr. Ravi Kant
Dr. V.Sumantran
Mr. P.P.Kadle
Mr. P.K.M.Fietzek




                                                                              9
10
CELLULAR TECHNOLOGIES


Overview
Wireless communications      use   the   radio-frequency      spectrum   for

transmitting   and   receiving   voice   data   and   video    signals   for

communications. The common element of all wireless radio services is

that they use a radio frequency or channel of a wire communicate to

and from one or more locations.


EVOLUTION OF CELLULAR TECHNOLOGIES


Wireless mobile telephone systems have evolved through three

generations:

  •   First Generation (I G) Analog Systems

  •   Second Generation (2G) Digital Systems-GSM, TDMA,

      CDMA

  •   Third Generation (3G) Digital Systems


First Generation Systems (1G): 1980s-Present
The first generation cellular systems (1G), introduced. in the 1980s

and early 1 990s, used analog cellular and cordless telephone

technology. Networks based on 1 G analog dominated the majority of

cellular networks till the early 1990s. Analog systems still operate in

the US, with an estimated 49% of the end- 1999 subscriber base of

86.05 million. Other major countries where analog systems still


                                                                         11
predominate include Canada (63% of end 1999 subscriber base),

Brazil (34% in 1999), the Philippines (52% in 1999), and Thailand

(56% in 1999). However, by end 1999, subscriber base on analog

technologies was only an estimated 177% of the global cellular

subscriber base.

Analog systems are more prone to interference, static, eavesdropping

and cloning than digital systems.



They also have several limitations, including lack of privacy and limited

capacity. The traditional analog cellular systems, such as those based

on the AMPS and TACS, use Frequency Division Multiple Access

(FDMA). The FDMA technique enables multiple users to share the same

region of spectrum, This standard supports clear communication and

inexpensive mobile telephones, but the transmissions are easy to

intercept on a standard radio receiver and therefore are susceptible to

eavesdropping. Although technically simple to implement, FDMA is

wasteful of bandwidth. Moreover, it cannot handle alternate forms of

data, only voice transmissions. Significantly, the analog systems used

one centrally located transmitter site, usually mounted very high up to

achieve the greatest possible range. For the mobiles to transmit this

far, they needed very high power.




                                                                       12
Because of this power requirement, hand held devices were out of the

question, and portable ones filled a briefcase.


Second Generation Digital Systems (2G): Early 1990s-Present
During the early 1980s, even as analog cellular systems were first

going into service, research and development of digital cellular

systems were in progress. Digital cellular communications (2G Digital

Systems) convert all voice transmissions to computer language (zeros

and ones, or "binary" language) and then reconstruct them into the

original voice format at the other end.

Digital   technology     offers   many     advantages   over   analog

technology, including:

   •   Efficient use of available spectrum and substantially enhanced

       network capacity, due to

   •   TDMA and CDMA, which allow a more efficient use of radio

       spectrum than the previous FDMA technology.

   •   Easy integration with personal communication systems (PCS)

       devices, Superior quality of voice transmission over long

       distances.

   •   Difficult to decode, enabling voice privacy. Can use lower

       average transmitter power, Enables smaller and less expensive

       individual receivers and transmitters.




                                                                   13
•   Opportunity to provide improved data transmissions in addition

       to voice because of digital transmission over a radio channel.

   •   Enables long term digital handset cost reductions with economies

       of scale, since digital handsets have a lower power consumption

       and their functional intelligence can be squeezed onto fewer

       semiconductor chips.

As a result, digital systems are currently the technology of choice

throughout the world, with an estimated 82.3% of the global

subscriber base by end- 1999

Two types of 2G Higher Tier systems were standardized and deployed

in the 1990s. One is the cellular mobile systems which are more

prevalent today and are characterised by the division of a geographical

area into cells, typically 3-5 kms in radius, served by a radio station at

its centre. The other are the Personal Communication Systems (PCS),

which have much smaller cells, typically 200-500 meters in radius, and

are supposedly more economical and better in quality.

Personal Communication Systems (PCS)

They have much shorter distances between mobile phones and the

nearby radio station, which reduces the power required to transmit

signals from the mobile phones, improving the voice quality and

increasing data speed. However, in order to cover the same area, a

larger number of cells (and radio stations) is required, thus making it



                                                                        14
suitable to more densely populated metropolitan areas. PCS has

several advantages over existing cellular telephone service. They

include better service quality through use of digital technology, more

compact radio interface equipment, increased mobility, enhanced

service features, and price.



Third Generation Systems (3G): 2000 Onwards

In 1985, the original concept for 3G wireless systems merged from an

ITU   initiative   known       as   the   Future   Public   Land   Mobile

Telecommunication System (FPLMTS). In 1996, FPLMTS was re-

designated    as    International     Mobile   Telecommunications-2000

(IMT-2000). The number 2000 was chosen, because the ITU's

timetable called for a standard to be defined by the year 2000.

IMT-2000/3G is best understood as a minimum set of capabilities for

delivering communications services. IMT-2000 does not define the air

interface that will deliver the services, nor does it specify what the

IMT-2000 services will be. 3G is an open, packet-based, networking

strategy that enables integration of voice, data, and multimedia for

wireless mobile networks worldwide. It would support higher data

rates than do 2G systems and yet be less expensive. The IMT-2000

recommendations call for a wireless data speed of 144 kbps for high-

speed mobile users, 384 kbps for users moving at pedestrian speeds,



                                                                       15
and 2 mbps for stationary users. The indoor radio channels typically

support higher data rates with better reliability than does the outdoor

channel used by persons moving rapidly. 3G would also advance other

aspects of wireless communications by reducing equipment size,

extending battery life, and improving ease of operation. The key

features of IMT-2000 are high degree of commonality of design

worldwide; compatibility of services within IMT-2000 and with the

fixed network; superior two-way voice communication quality; small

terminals for worldwide use; worldwide roaming capability; and

capability for multimedia applications and a wide range of services

(e.g. video-teleconferencing, high speed Internet, speech and high

rate data).




                                                                     16
List of documents:

List of Documents needed for a connection: The various documents that are
needed for a post paid walky and mobile connection from Tata Indicom are
the following:


        For the connection that is to be installed at residence:

1.     Identity Proof (anyone):
•    Driving license
•    Voter’s identity card
•    Passport
•    Bank Pass Book, with a stamped a photo on it
•    Photo credit card.
•    Arms and Ammunition license


2. Proof of Residence (Anyone):
•    Passport
•    Driving license
•    Paid telephone bills (not more than 4 months old)
•    Paid electricity bills (not more than 4 months old)
•    Paid water bill (not more than 4 months old)
•    Vehicle registration certificate
•    Ration card
•    Municipal tax payment receipt




3. PAN Card or Form 60.



                                                                       17
For a connection that is to be installed at a shop or any
                         business related location:

1. Proof of identity (Anyone)
•    Shops and Establishment Registration Certificate
•    Municipal Registration Proof
•    Sales Tax Registration Certificate
•    Memorandum of Association
•    Government Document sent from a government office


2. Proof of Address (Anyone)
•    Memorandum of Association signed by the Director
•    Sales Tax Registration Certificate
•    Municipal Registration Proof
•    Shops and Establishment Certificate
•    Telephone Bills (Not more than 4 months old)
•    Government document sent from the government office
•    Original Bank Statement attested is a bank official.




                                                            18
HANDSETS




             Huawei 2285




             Kyocera K122




           Samsung Hero NXT




                              19
Availability on Postpaid                                                   Yes                             Yes
   Availability on Prepaid                    Yes                             Yes                             Yes
                                                                  Brew 2.1.1.2/ Candy Bar/ B&W   Mobile Tracker,Emergency SOS
       Unique feature            Speaker phone & voice recorder
                                                                    Display with Colour Filter       alert ,T9 Hindi&LMS
       B & W // Color                        B&W                     B/W with Colour Filter              4 Gray B&W
     T-Sim / Non T-Sim                       T-Sim                            NA                            T-SIM
      Display Size Type                      CSTN                     Monochrome, FSTN                    1.33" , FSTN
Screen Resolution standardised
                                             96x65                           96x64                          128x128
    format ( 128 X 90 etc)
                                                                                                 100 (Inbox,OutBox& Draft)+ 20
            SMS                               Yes                           Yes (50)
                                                                                                           Templates
            MMS                               NA                              No                              NA
                                                                                                 12 Poly -30 Embeded ringtones&
  Ring tone type - Polyphony                32-Poly                         MIDI-12
                                                                                                            Tata Zone
          FM Radio                            No                              NA                              No
       Speaker phone                          Yes                             NA                              No
        Games (2~3)                           No                               1                               2
     Phone book memory                        500                                                             No
        Data Modem                            No
    Applications Platform                     No                            BREW                          BREW Lite
          Browser                             No                              NA                              No
          PC Sync                             No                        Phonebook Only                     Available
           Camera                             No                              NA                              No
       Video Capture                          No                              NA                              No
            Zoom                              No                              NA                              No
     MP3/ AAC Support                         No                              NA                              No
          Bluetooth                           No                              NA                              No
        Infrared Port                         No                              NA                              No
    External Memory Slot                      No                              NA                              No
            Email                             No                              NA                              No
        Touch Screen                          No                              NA                              No
       Touch Keypad                           No                              NA                              No
   Handwriting recognition                    No                              NA                              No
      Operating System                       REX                              Rex                            REX
      Document viewer                         No                              NA                              No
                                                                                                 Rigtones download & SMS based
      Tata Zone support                       No                              Yes
                                                                                                            services
      Battery Capacity                     600mAh                          900 mAh                          800mAh

          Talk time                         3-4 hrs                         3.5 Hrs                          3Hrs

        Stand-by time                     150-190 Hrs                       200 Hrs                         215 Hrs
           Weight                          about 80g                        78 gms                         76.2 gms
      Video Streaming                         No




                                                                                                                         20
Advantages of using TATA Indicom:


Tata Indicom provides various facilities to its walky and mobile users. The
various advantages are:


   •          Phone book: The phone has a vast memory and can store up to
       500 numbers, and in the models Axxestel and LG LSP 350 T, the
       phone book has a memory of 500 names and in front of each name,
       four numbers can be stored. So, it makes up to 2000 numbers.


   •   Display: The display screen is wide that helps the customers to see
       clearly.


   •   Large call history: The call book is very large, as it enables to check
       the call history, that is all 60 last dialed numbers, missed calls, as well
       as received calls.


   •   Phone lock system: The customer can bar all the local as well as the
       STD calls being made from the phone by locking the phone by dialing
       the number given to the subscriber at the time of connection.


   •   Caller Line Identification Process or CLIP facility: The user of the
       phone can identify the caller through this facility as the number from
       which a person is calling is displayed on the screen of the user.




                                                                               21
•   Call waiting and Voice mail facility: If the user is busy talking to a
       particular number, and any other person is trying to call him then the
       third number from which the user is getting a call will be displayed on
       the screen, along with a beep.


   •   Closed user group: This facility is provided to only those customers
       who subscribe in bulk. If there are more than ten connections at a time
       by any person, or any society or even corporate, then they are given
       some special facilities in the form of concessions in the call charges,
       like the intra group calling will be free, and activation charges, like
       the amount needed for the activation of the phone will be wavered, i.e.
       it will be either reduced or there would be no deposits and no
       activation charges etc.


   •   Voice mail: The user can use this facility and keep receiving the call
       indirectly, i.e., the message of the caller to that number will be
       recorded in the phone and the user can refer to it, afterwards
       according to his/her convenience.


There are some other facilities also that are provided by the company,
along with the above mentioned ones which are listed below. Those are:


   •   Call forward: If a person wants to receive the call from other
       number, then the call can be forwarded to his/ her number through this
       facility.




                                                                           22
•   Internet facility: A customer can access Internet through the phones,
    with a speed of 120 kbps.


•   Hot line facility: This facility can be used in case of emergencies. For
    this a number is fed as “hot line number”. If the receiver is off the
    hook for one minute, then there is automatically calling to a number
    that has been fed as the hot line number.


•   Off hook facility: In this, the customer can receive a call even when
    the receiver is kept off the hook, i.e. if the receiver is not kept
    properly, then the line for this number will be engaged for first three
    numbers, and the fourth number which is being dialed to this
    particular number, will start ringing. There will be a beep, and then
    the phone will start working normally automatically. This is helpful as
    many-a-times the receiver is not kept properly by mistake. So, in
    those cases, this facility helps.


•   Call restriction: If the customer doesn’t want to receive a call from a
    particular number, then he/ she can block the number by calling to the
    customer care centre. Again, if he/she can block the calls from a
    particular city, or state just dialing the STD code of that particular
    place. The person who will be calling to these numbers will always
    find the numbers engage.




                                                                         23
•    Three way conference: A person can talk with up to one thousand
     people at a time. This can be achieved by just dialing the number and
     you can invite


    another person to talk to you. So, the chain can go on increasing till the
    total number of people who are on line is one thousand.


•    Pooling facility: This facility is provided mainly to the corporate or
     those customers who install more than five phones line connection
     from the company. In this facility, there is a sharing of the bills
     amongst these numbers. For example, if there are three departments in
     a office with different requirements and intensity for calling. And if
     the customer has subscribed to a plan in which he gets a free talk time
     of Rs.500. Now if department A has a monthly expenditure for
     Rs.800, department B has a monthly expenditure of Rs.200, and
     department C has a monthly calling of Rs 500. Then, the balance
     amount of Rs.500 of department A will be adjusted to the charge of
     department and, the subscriber would not have to pay the extra
     amount for the unutilized amount of the free talk time of department
     of as it automatically gets adjusted in department A’s account. Thus,
     this facility gives the customer value for money.




                                                                           24
Indian Telecom Market

Indian telecom market has shown excellent performance in the fiscal 2005-06.
Tele-density in India is galloping.

The number of telecom subscribers in India grew by 41.2 million in 2005-06 to
touch 140 million. According to the data, during 2005-06 the teledensity in the
country grew 12.73 per cent.

The large chunk of telecom subscribers are in the mobile phone category with
the customer base in this segment growing 37 million to touch 90 million,
according to the Telecom Regulatory authority of India (TRAI).

The total subscriber base of fixed line phones stood at 49 million by the end of
2005-06.

For mobile segment 5.03 million subscribers have been added during March
2006. The mobile additions consist of 3.78 million GSM subscribers and 1.25
million CDMA subscribers as against 3.17 million GSM and 1.11 million CDMA
subscribers in the previous month. The total mobile subscribers at the end of
March 2006 touched 90 million.

In the fixed segment a total of 0.30 million subscribers were added during March
2006. With this the total subscriber base of fixed lines reached around 49.75
million.

In fiscal '06, the increase was more than entire user base as recently as five
years ago. The teledensity in India is still much less than the developed countries
such as UK (102%) and USA (60%). India still lags China (23%). But it is
catching up fast. This increase has been brought about mainly by the explosion
in mobile subscriptions. Most of the recent growth has been in the mobile user
base.


                                                                                25
In fiscal '01, out of the total increase of almost 7 million users, 6 million was for
fixed line connections. The trend started shifting from fiscal '02, when the number
of new connections added started to go down for fixed line and increased
exponentially for mobile services. In fiscal '06, the number of new mobile
connections added was close to 38 million, while the number of fixed line went up
by only 3.8 million. That is almost 10 times more! But fixed line connections are
going up again.

Within the wireless space, the GSM segment still leads in absolute numbers. The
GSM subscriber base continues to be more than 3 times the CDMA subscriber
base.

At the end of fiscal '06, the total number of GSM subscribers was close to 69
million users, while CDMA had close to 23 million. However, CDMA continues to
grow at much faster rates than GSM. During the fiscal '06, GSM subscriptions
grew at 68%, while CDMA connections grew at 86%.

The largest mobile operator continues to be Bharti with 19.6 million subscribers,
followed by Reliance Communications Venture Ltd with 17.4 million mobile users.
State-owned Bharat Sanchar Nigam Ltd has 17.2 million subscribers and is third
in the race at the end of March.

At the end of April 2006, the total fixed-line telephone subscribers were about
47.51 million (against 46.78 million in March), taking the combined base of
mobile and fixed telephony subscribers to 144.43 million.

With the addition of 4.6 million new customers added in April, gross telecom
subscriber base in India has grown to 144 million pushing the tele-density to
13.16 per cent. The tele-density was 12.73 per cent in March 2005.




                                                                                  26
Operations in UP West [Dehradun Cluster]




TTSL products offered in UP West Circle are CMO i.e. Mobile Service (Prepaid
and Postpaid service), Walky (Fixed Wireless Phone) and PTB (Public
Telephone Booth).


These products are each being handled by separate departments. The UP West
and Uttaranchal is further subdivided into smaller clusters which are :
   1. Meerut.
   2. Dehradun
   3. Agra




                                                                          27
Demographic Details of major cities in UP West Circle
                                                                   4
 UP West       Population    Per Capita Income   2 w heelers   w heelers   TV Households   Corp   SME
  Bareilly         729,800             10,876        64,160       5,435          140,487    10      125
 Dehradun          505,343             13,468       169,232      27,801          101,069    22      225
  Meerut         1,167,399             18,237       176,873      19,443          245,154    10      480
   Agra          1,321,410             13,669       289,942      29,563          277,496    15      658
 Moradabad         641,240             11,380       101,528       7,342          118,629     5      280
   Total         4,365,192             16,908       801,735      89,584          882,834    62    1,768
 TOTAL UPW      53,508,148             11,668     1,295,804     126,714                    125    NA



                                    Nursing Engg/Medical/                          Branded Cinema
 UP West     Doctors CA's Advocates Homes Mgmt Inst. Colleges Schools Universities stores Halls
  Bareilly      473 116      2,401     105           14    8      44             1     45      11
 Dehradun       900   60     2,000      55           70    5     135           -       60       6
  Meerut        790 263      3,536     123           17   10     110             2     45      17
   Agra       1,260 350      3,200     190           17    6     140             2     65      28
 Moradabad      358   52     1,267      50            3    5      40           -       35       9




Product Contribution – UP West

                               UP West

                                                  24%




                                                         8%
              62%
                                                     6%



         Walky Post          Walky Pre           CMO Post          CMO Pre




                                                                                                   28
Role of Distributor:


The responsibilities of Distributor towards the Retailer’s are:
   1. Providing the retailers with the required stock to allow their proper
       functioning.
   2. Keeping the retailers updated about changes in Changes in Tariff,
       Services and company’s policy of operation.
   3. Timely collection of CAF from the retailers and submitting them to the
       customer care division of the company.
   4. Providing the retailer with POP material to help them attract more
       customers.
   5. Passing on the benefits given by the company to the retailers.


The responsibilities of Distributor towards the Company are:
       1. To maintain a stock of handsets for 15 – 21 days and that of RCV
          (Recharge Coupon Vouchers) for 7 – 14 days as directed by Tata
          Indicom.
       2. To ensure placements of Indicom’s products so as to increase the
          availability and visibility.
       3. To keep up superior relationship with all its retailers this would
          eventually lead to sales with recommendations from retailer.
       4. Achieving the secondary sales targets given by the company.
       5. Opening up on new retail outlets in order to increase the availability
          and penetration of company’s products and services.
       6. Timely investment into business.




                                                                             29
Beat Plan


Beat Plan is a schedule designed to make sure a certain number of visits to
retailers by the FOS over a week. These visits depend on the number of
handsets sold per month which are the basis for classification of retail outlets.


Classification of Retail Outlets
While preparing beat plan it becomes important to classify the retail outlets on
the basis of volume of sales they provide. All the retail outlets of Tata Indicom
were classified in four categories as under:


Category        Monthly Sales                            Frequency of FOS visits
A               Sales of > 15 handsets / month           Daily
B               Sales of 10 – 14 handsets / month        Once in 2 days
C               Sales of 5 – 9 handsets / month          Once in 3 days
D               Sales of 1 - 4 handsets / month          Weekly

Class A retailers form only about 15% of all outlets but in terms of sales value
they provide 60% – 70% of business. Thus a Class A retailer is precious to Tata
indicom and needs to be given individual attention. Such a retail outlet is usually
provided with better schemes, is more often visited by the FOS and is provided
with the best POP (Point of Purchase) merchandise.


For Sample Beat Plan please refer to Appendix C.




Role of FOS


The FOS (Feet on Street) is a person trained by the company who works with the
distributor to make secondary sales, i.e. sales made by the distributor to the
retailers. The FOS is responsible for product presentation, order taking, stock
checking and collections on credit sales due to the distributor.


                                                                                    30
Each FOS is accountable for 3 beats, each of 30 – 35 retailers. These beats are
geographically allocated to different FOSs. The FOS makes visits to the retailers
under his territory according to the beat plan, which specifies which all retailers
are to be met on a given day. On these visits the FOS makes product
presentation, highlighting the benefits of Tata Indicom over its competitors. He
also lets the retailer know about the current promotional offers being floated by
Indicom for its retailers and customers. The FOS provides the retailer with
company merchandise and POP material, which increases the visibility of Tata
Indicom, its products and schemes. This also helps the retailer make sales easily
and earn a significant margin.


Another key task performed by the FOS is “Order taking”, which includes the
confirmation about the volume and value of the stock ordered and entering so in
the order book. The FOS also handles the duty of stock checking, where he
verifies the opening stock, the number of activations, stock of recharge coupons
and the closing stock. He is also expected to have a fair idea about the
competitor’s stock, number of activations and schemes as well.


On the Distributor end the FOS is responsible for timely submission of the
retailer’s orders and is liable to specify any special commitments made by him.




                                                                                  31
INTRODUCTION TO THE INDUSTRY

Telecommunications

One    of     the   fastest   growing   sectors   in   the   country,

telecommunications has been zooming up the growth curve at a

feverish pace in the past few years.


  •   The number of mobile phones (including 20.8 million WLL

      (M)) as on January 31, 2006, was about 83 million, which is

      over 63 per cent of the total number of phones in the country.

  •   Over 32 million new telephones were added during April-

      January of the current financial year, with five million

      additions occurring in January alone, taking the total number

      of phones in the country to 130.8 million as on January 31,

      2006.

  •   Tele-density has increased from 8.8 per cent in January 2005

      to 11.7 per cent at the end of January 2006.

  •   According to the Telecom Regulatory Authority of India

      (TRAI's) quarterly performance indicators, Internet user base

      has grown 15 per cent from September 2004 to September

      2005, with private operators accounting for 2.6 million users.

  •   The gross subscriber base of the fixed and mobile services

      together reached 113.07 million at the end of the quarter

                                                                   32
July-September 2005, from 104.22 million as on June 2005,

      registering an increase of 8.49 per cent during the quarter.


Under the Bharat Nirman Yojana, a total 66,822 villages are to be

provided with village public telephones (VPT) by November 2007.


Destination India


The growth statistics of the sector combined with the government's

decision to increase the foreign direct investment cap in the sector

to 74 per cent is generating interest among global investors. India,

one of the fastest growing countries in telecom manufacturing in

the world, will attract another US$ 855 million as foreign

investment over the next two years.


  •   India has become the ‘crown jewel’ in Hong Kong-based

      Hutchison Telecom, contributing about 41 per cent of the

      group's total revenues of US$ 3.1 billion in 2005. This

      amounted to more than half of Hutch International’s gross

      profit.

  •   Nokia calls India its stepping stone to success. It said that

      convergence and 3G products will increase exponentially from




                                                                     33
2005-07 in Asia with key drivers being India along with Brazil

      and China.

  •   The China-headquartered Haier group, with a global presence

      in home appliances and consumer electronics, has set up a

      joint venture for telecom in India for the handset and

      equipment business.

  •   Nortel,   North    America's    biggest   telecommunications

      equipment provider, has signed a five-year deal to provide call

      centre services for Bharti, which has a more than 22 per cent

      market share of the mobile phone market in India.

  •   Israeli telecommunications equipment maker ECI Telecom

      opened a new research and development centre in India in an

      effort to reduce the time to market new products.


Global forays


India offers an unprecedented opportunity for telecom service

operators, infrastructure vendors, manufacturers and associated

services companies. With global telecom bigwigs keenly looking at

the fast-growing Indian market, domestic majors are busy dialing

in new deals and expanding overseas.




                                                                   34
•   Bharti, which has been offering telecom services in Seychelles

    for the last seven years under the brand Airtel Seychelles

    Ltd., announced that it would soon launch next generation

    3G services there with an initial investment of US$ 968,309.

•   Videsh Sanchar Nigam Ltd (VSNL) has said that SNO

    Telecommunications (PTY) Ltd, in which the company is a

    principal shareholder, has received a telecom licence to

    operate in South Africa.

•   The Tata Group will invest more than US$ 230-million in

    South Africa over the next three years to develop and operate

    telecommunication services.

•   Reliance   Infocomm        has   joined   hands   with   China

    Telecommunications to provide direct telecom connectivity for

    the first time between the two countries. It will now route

    communications traffic between India and China on a global

    network of its group company Flag Telecom.




                                                                35
Telecommunication in India

The Indian telecommunications Network with 77m telephone

connections is the fifth largest in the world and is the second

largest among the emerging economies of Asia. Today it is the

fastest growing market in the world and represents unique

opportunities for UK companies in the stagnant global scenario.

Tele-density, which was languishing at 2% in 1999, has shown an

impressive jump to 7% in 2005 and is set to increase to 20% in the

next five years beating the Govt. target by three years. Accordingly,

India    requires     incremental    investments      of    USD

10-15 bln for the next five years.


Private operators have made mobile telephony the fastest growing

(over 164% p.a.) in India. With more than 33 million users (both

CDMA and GSM), wireless is the principal growth engine of the

Indian telecom industry. Given the current growth trends, cellular

connections in India will surpass fixed line by late 2004/early

2005. Intense competition between the four main private groups -

Bharti, Hutch, Tata and Reliance and with the State sector

incumbents-BSNL and MTNL has brought about a significant drop

in tariffs. There has been almost 74% in cell phone charges, 70% in




                                                                   36
ILD calls and 25% drop in NLD charges, resulting in a boom time

for the consumers.


The Government has played a key enabling role by deregulating

and liberalising the industry, ushering in competition and paving

the way for growth. While there were regulatory irregularities

earlier, resulting in litigation, these have all been addressed now.

Customs duties on hardware and mobile handsets have been

reduced from 14 percent to 5 percent.


The Indian government has merged the IT and Telecom Ministries

to   speed    up reforms   and decision   on the   Communication

Convergence Bill to enable the common regulation of the Internet,

broadcasting and telecoms will be taken after the new Government

assumes responsibilities in may this year. An independent

regulatory body (TRAI) and dispute settlement body (TDSAT) is fully

functional.




                                                                  37
INDIAN CELLULAR MARKET


The Bharti Group, which operates in 15 circles, continues to be the

country's largest cellular operator, with 30.71 lakh subscribers.

BSNL, which operates in 17 circles, has a subscriber base of 22.56

lakh subscribers. Thus BSNL stands second largest cellular

operator in terms of subscriber base at the end of the fiscal ending

March 31, 2005, displacing Hutchison from the second position.


Hutch, which operates in only seven circles, is the third largest

operator with a subscriber base of 21.64 lakh. Unlike fellow public

sector undertaking, MTNL, which operates in Mumbai and Delhi,

BSNL has been a very aggressive player in the market. "Cellular

operators who expected BSNL to go the MTNL way, were taken by

surprise and did not take effective steps to counter it, till it was too

late in the day," said a telecom analyst.


Belying fears of a slowdown in cellular subscriber acquisitions, the

cell club has reported a 7.92% growth, the highest growth in any

month so far, during March 2005. Year-on-year, the cellular

subscriber base in the country has almost doubled to 1.27 crore in




                                                                      38
March 2005, a 97.29% growth over 0.64 crore in March 2004. The

subscriber base was 0.36 crore in March 2003.


The cellular subscriber club expanded by 9.31 lakh last month.

This is much higher than 5.9 lakh subscribers added in February

2005 and 2.13 lakh in January 2005. Idea, which operates in five

circles, is the fourth largest operator with a subscriber base of

12.80 lakh, higher than BPL's 11.31 lakh subscribers across four

circles. The subscriber numbers per operator drop sharply with the

sixth largest operator, Spice Communications, having a subscriber

base of 6.40 lakh, followed by Escotel with a base of 5.87 lakh and

Reliance Telecom's 5.41 lakh subscribers.


MTNL is the ninth largest operator, with a base of 2.92 lakh

subscribers, followed by Aircel's 2.3 lakh subscribers and Aircel

Digilink's 1.83 lakh subscribers. RPG Cellular is the 12th largest

operator with 1.79 lakh subscribers, followed by Hexacom's 1.32

lakh subscribers.


The growth in the cellular subscriber base was seen to have slowed

down in the past two months because of the hype created by

limited mobility. Before that, monthly additions in the last three

months of calender year 2004 averaged around 6.75 lakh.


                                                                 39
While the subscriber base-jumped by 3.38% to 44.39 lakh in the

metros, subscriber base of category A circles of Maharashtra,

Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu jumped by

10.18 % to reach 43.64 lakh. Category B circles of Kerala, Punjab,

Haryana, Uttar Pradesh (West), Uttar Pradesh (East), Rajasthan,

Madhya Pradesh and West Bengal recorded a jump of 10.69%, with

a total base of 33.74 lakh subscribers. Circle C has reported 12.74

% growth with subscriber numbers jumping to 5.08 lakh.


Among the metros, while Mumbai added 63,180 subscribers,

higher than the 58,646 added by Delhi, the Capital's cellular

subscriber base of over 18 lakh is still higher than Mumbai's 16.89

lakh. Last year, the cellular subscriber base had grown by 79.78%,

thus reaching 64.3 lakh, compared to 35.77 lakh in the year

ending March 2001. While the cellular industry has been on roll for

the first three quarters of the previous financial year with an

average of 6.75 lakh monthly additions in the third quarter, the

first two months of 2005 had seen the growth slowing down.




                                                                 40
MARKETING STRATEGY
             ADOPTED BY TATA INDICOM

Tata-Indicom has spent a considerable amount on advertising its

mobile phone service, Tata-Indicom. Besides print advertising, the

company had put up large no of hoardings and kiosks in and

around Delhi.

The objective behind designing a promotion campaign for the ‘Tata-

Indicom’ services is to promote the brand awareness and to build

brand preferences.

It is trying to set up a thematic campaign to build a stronger brand

equity for Tata-Indicom. Since the cellular phone category itself is

too restricted, also the fact that a Cellular phone is a high

involvement       product,   price   doesn't   qualify   as   an   effective

differentiator.    The image of the service provider counts a great

deal. Given the Cell phone category, it is the network efficiency and

the quality of service that becomes important. What now the buyer

is looking at is to get the optimum price-performance package.

This also serves as an effective differentiator Brand awareness is

spread through the' campaigns and brand preference through



                                                                         41
brand stature. Tata-Indicom's campaign in the capital began with a

series of 'teaser' hoardings across the city,' bearing just the

company's name and without explaining what Tata-Indicom was.

In the next phase the campaign associated Tata-Indicom with

Cellular only thereafter was the Tata-Indicom Cellular connection

brought up. Vans with Tata-Indicom          logos roamed the city,

handing out brochures about         the company and its services to

all consumers. About 50,000 direct callers were sent out. When

the name was well entrenched in the Delhiites’s mind, the Tata-

Indicom campaign began to focus on the utility of Cellphone. In

the         first         four         months         alone

Tata-Indicom 's advertisement spend exceeded Rs. 4 crores.

As of today the awareness level Is 60% unaided. This implies that

if potential or knowledgeable consumers are asked to name a

Cellular phone service provider that is on the top of his/her mind

60% of them would name Tata-Indicom. As for aided it -is 100%

(by giving clues and hints etc.).

Brand strength of a product or the health of a brand is measured

by the percentage score of the brand on the above aided and the

unaided tests. The figures show that Tata-Indicom is a healthy and

a thriving brand.



                                                                 42
Every company has a goal, which might comprise a sales target and

a game plan with due regard to Its competitor.       Tata-Indicom's

campaign strategy is designed keeping in mind its marketing

strategy.   The tone, tenor and the stance of the visual ads are

designed to convey the image of a market leader in terms of its

market share. It tries to portray the image of being a "first mover

every time" and that of a "market leader".

The status of the product in terms of its life cycle has just reached

the maturity stage in India.    It is still on the rising part of the

product life cycle curve in the maturity stage.

The diagram on the left hand side shows the percentage of the

users classified into heavy, medium and low categories. The right

hand side shows the revenue share earned from the three types of

users.

Tata-Indicom, keeping in mind the importance of the customer

retention, values its heavy users the most and constantly indulges

in service innovation. But, since heavy users comprise only 15 -

20% of the population the other segment cannot be neglected.

The population which has just realised the importance of cellular

phones has to be roped in. It is for this reason that the service

provider offers a plethora of incentives and discounts.     Concerts



                                                                   43
like the "Freedom concert" are being organised by Airtel in order to

promote sales.         The media channel is chosen with economy in

mind.     The target segment is not very concrete but, there is an

attempt       to    focus   on   those   who   can   afford.   The   print

advertisements and hoarding are placed in those strategic areas

which most likely to catch the attention of those who need a

cellular phone. The product promise (which might cost different 1

higher) is an important variable in determining the target audience.

Besides this, other promotional strategies that Tata-Indicom has

adopted are :

(i)    People who have booked Tata-Indicom services have been

       treated to exclusive premiers of blockbuster movies.          Tata-

       Indicom has tied up with Lufthansa to offer customer bonus

       miles on the German airlines frequent flier's programs.

(ii)    There have been educational campaigns, image campaigns,

        pre        launch   advertisements,     launch     advertisements,

        congratulatory advertisements, promotional advertise-ments,

        attacking advertisements and tactical advertisements.




                                                                        44
Operations in UP West [Dehradun Cluster]




TTSL products offered in UP West Circle are CMO i.e. Mobile Service (Prepaid
and Postpaid service), Walky (Fixed Wireless Phone) and PTB (Public
Telephone Booth).


These products are each being handled by separate departments. The UP West
and Uttaranchal is further subdivided into smaller clusters which are :
   1. Meerut.
   2. Dehradun


                                                                          45
3. Agra




Demographic Details of major cities in UP West Circle
                                                                   4
 UP West       Population    Per Capita Income   2 w heelers   w heelers   TV Households   Corp   SME
  Bareilly         729,800             10,876        64,160       5,435          140,487    10      125
 Dehradun          505,343             13,468       169,232      27,801          101,069    22      225
  Meerut         1,167,399             18,237       176,873      19,443          245,154    10      480
   Agra          1,321,410             13,669       289,942      29,563          277,496    15      658
 Moradabad         641,240             11,380       101,528       7,342          118,629     5      280
   Total         4,365,192             16,908       801,735      89,584          882,834    62    1,768
 TOTAL UPW      53,508,148             11,668     1,295,804     126,714                    125    NA



                                    Nursing Engg/Medical/                          Branded Cinema
 UP West     Doctors CA's Advocates Homes Mgmt Inst. Colleges Schools Universities stores Halls
  Bareilly      473 116      2,401     105           14    8      44             1     45      11
 Dehradun       900   60     2,000      55           70    5     135           -       60       6
  Meerut        790 263      3,536     123           17   10     110             2     45      17
   Agra       1,260 350      3,200     190           17    6     140             2     65      28
 Moradabad      358   52     1,267      50            3    5      40           -       35       9




Product Contribution – UP West
                               UP West

                                                  24%




                                                         8%
              62%
                                                     6%


                                                                                                   46
         Walky Post          Walky Pre           CMO Post          CMO Pre
DISTRIBUTION

                             Company



   Franchisee                                Distributor



   Dealer                                    Dealers



   Customer                                  Customer



The- company whose operations are concentrated in and around

Delhi.   It 27 Franchisees and 15 Distributors- They also have 8

'instant access cash card counters- Each franchises or distributor

can have any number of dealers under him as long as the person is

approved by the Tata-Indicom authority.     Each franchises has to

invest Rupees Ten Lakhs to obtain a franchise and should employ

an officer recruited by Tata-Indicom. This person acts as an liaison

between the company and the franchises.      The franchises can it

any number of dealers as long as their territories do not overlap.

But unfortunately Tata-Indicom has not been very successful in

                                                                  47
controlling territorial overlaps of dealers. The franchises can carry

out his 1 her own promotional strategy.      For this the. company

contributes 75% of the money and the franchises contributes 25%

of the money. The dealers under the franchisee receive the same

commission.    The franchises and the dealer obtain the feedback

from the customers and they are sent through the liaison officer on

a day-to-day basis to Tata-Indicom.      The dealer has to invest

Rupees. One Lakh as an initial investment.      The dealer of Tata-

Indicom are not allowed to provide any other operators' service.

Target set for distributors and the dealers is 100 -150 activations

per month. Hence the dealers can also go for their own promotions

like banners and discounts on festivals etc.    The dealer provides

service promptly. The consumer on providing the bill of purchase

for the handset and proof of residence has only to wait an hour

before getting connected. The staff of the dealers and the

franchisees are provided training by the Tata-Indicom personnel.

The complaints encountered by the franchisees and dealers are

either handset being non-functional or the SIM Card not getting

activated. Anything more complicated is referred to the main Tata-

Indicom office in Delhi.




                                                                   48
TATA INDICOM OFFERS

With Tata-Indicom, the subscriber wouldn't just get a personal

phone that lets him/her be in touch, always, but also gets a host of

benefits that let him/her manage his/her time like never before.

An Tata-Indicom subscriber is provided with a Subscriber Identity

Module Card (SIM card) - that is the key to operating his/her

cellular phone.   His card activates Tata-Indicom cellular services

and contains a complete micro-computer chip with memory to

enable one to enjoy one's cellular phone thoroughly. Each SIM card

contains a PIN code (Personal Identity Number) which may be

entered by one. Just plug your SIM card into your cellular phone,

enter the PIN code and it becomes 'your' personal phone'.




                                                                   49
Brand ambassadors:

Global companies have long understood the power and impact of associating
popular personalities with their brand name and products. Most will agree
that a successful brand ambassador can make or break a new product launch,
or even catapult a company into a new era of exponential revenues after a
long drought of fading brand clout. But these days choosing a brand
ambassador isn’t what it used to be. Now, with the rapid diffusion of
information made possible through the Internet, companies are seeing the
dangers of making hasty decisions to link their products to public figures. In
the past, reputations were not etched in stone, but were relatively stable and
slow to change. Conversely, these days what goes around still comes around,
only now this happens at the speed of light and travels to the ends of the
world.
The primary role of the brand ambassador is to personify the values intrinsic
to the brand and evoke the dreams associated with owning the product. As
such, he or she must demonstrate a trend of increasing popularity and
notoriety in the markets where the advertising and promotion will be visible
in order to reach the projected target groups effectively. The notoriety of the
ambassador would be the magnet to attract a qualified target group to
appropriate the brand. The conversion process would start with a prospect’s
desire to purchase a certain type of product. The consumer’s ultimate choice
of brand and model would then be influenced to some degree by
identification with the brand ambassador.




                                                                            50
Tata has always associated itself with success. It has tried deliberately to be
in the minds of the customers as the numero uno. For the same reasons, it
has selected the


most successful captain of Indian cricket team, Saurav Ganguly, s its brand
ambassador.
Saurav Ganguly can be associated with fame, success and glory. He brings
leadership and experience with his image. Again the other brand
ambassadors of the company are Narain Karthikeyan, Irfan Pathan, an d
Sania Mirza. These are the youth icons, and the rationale behind employing
them as brand ambassador is that they bring fresh energy as well as
enthusiasm with in the mind of the customers. They are the voice and the
face for Tata Indicom. Narain Karthikeyan is considered to be rationale.
His is synonymous to speed and efficiency, and accuracy. Indicom intends
to set a similar picture of its own in the minds of the customers.
Irfan Pathan and Saurav Ganguly advertised for the prepaid sector, while
Ajay Devgan and Kajol promote the post-paid sector of Tata Indicom.
This couple is now one of the most popular couple in the glam world. They
represent a happy go lucky, carefree, yet successful pair. At the same time,
the company portrays the couple as very conscious about choosing the right
thing out of the available choices. They always mention in the
advertisements that this is the most cost effective and the most suitable
telephonic service that one can chose.




                                                                            51
Brand awareness of Indicom
Brand awareness is when people recognize your brand as yours. This does
not necessarily mean they prefer your brand (brand preference), attach a
high value to, or associate any superior attributes to your brand, it just means
they recognize your brand and can identify it under different conditions.
Brand awareness consists of both brand recognition, which is the ability of
consumers to confirm that they have previously been exposed to your brand,
and brand recall, which reflects the ability of consumers to name your brand
when given the product category, category need, or some other similar cue.
.




.




                                                                             52
The benefits of a strong brand
Here are just a few benefits people will enjoy when company create a
strong brand:


  • A strong brand influences the buying decision and shapes the
      ownership experience.


  •   Branding creates trust and an emotional attachment with the company
      or with the product. This attachment then helps the company to make
      decisions based, at least in part, upon emotion-- not necessarily just
      for logical or intellectual reasons.


  • A strong brand can command a premium price and maximize the
      number of units that can be sold at that premium.


  •   Branding helps make purchasing decisions easier. In this way,
      branding delivers a very important benefit. In a commodity market
      where features and benefits are virtually indistinguishable, a strong
      brand will help the customers to trust the company and create a set of
      expectations about the company’s products without even knowing the
      specifics of the product features.


  •   Branding will help the company to "fence off" the customers from the
      competition and protect the market share of the company while
      building mind share. Once the company has mind share, the customers




                                                                         53
will automatically think of the company and its products first when
    they think of buying the necessary product.


•   A strong brand can make product features virtually significant. A
    solid branding strategy communicates a strong, consistent message
    about the value of the company. A strong brand helps the company to
    sell the values and tangibles that surround the products of the
    company.


•   A strong brand signals that the company wants to build customer
    loyalty, not just to sell the products. A strong branding campaign will
    also signal that the company is serious about marketing and that it is
    intended to be around for a while. A brand impresses the company’s
    firm identity upon potential customers, not necessarily to capture an
    immediate market but rather to build a lasting impression of the
    company and the products.


•   Branding builds name recognition for the company or the product.


•   A brand will help the company to articulate the company's values and
    explain why the company is competing in the market.




                                                                        54
Tata Indicom has also concentrated on this aspect and thus has done a lot of
things to create strong brand awareness for the company. For example, it has
painted the entire exterior of local trains, giving its advertisements on them.


The idea is about surrounding the consumer in 360 degrees. As consumers
move away from conventional media, this kind of fragmentation and micro
targeting is bound to happen in many ways.
Again, in smaller towns, it has advertised heavily in the market places. Even
it has used a large number of billboards, banners, and occupied space in the
print media advertisements.




                  RESEARCH METHODOLOGY

Title : Marketing Strategies of Tata Indicom


Data Collection


The methodology adopted for this project is exploratory in

nature since there is no hypothesis that has to be tested. The

conclusions have been drawn by exploratory research work.


There have been two sources of information collected:

a) Primary Sources




                                                                              55
I have met retailers of the Tata-Indicom of the company and

have been able to get first hand information regarding the

product, its features and the buying patterns of the product.

Their input has been valuable.


b) Secondary Sources


Secondary source has played a vital role to play in this report. A

good amount of data has been collected from various published

articles and reports found in magazines and journals. Another vital

source has been the Internet and particularly the companies own

website.




Objectives of the study

•   To   study   the    importance      and   development   of   tele    –

    communication industry in today’s scenario.

•   To   understand     the   various   Marketing   Strategies   which

    Tata Indicom has adopted to survive in highly competitive cell

    phone industry.

•   To make a comparative study of the major players in Indian

    Service Provider.



                                                                         56
Scope of the study

• To identify the marketing programs being run by Tata Indicom

   and to study the impact of marketing strategies on Tata Indicom.




SIGNIFICANCE FOR THE RESEARCH :


To facilitate in appreciative of marketing situation of Tata Indicom.




RESEARCH TECHNIQUES


SAMPLING METHODOLOGY


Sampling Unit : Individuals & Families


Sampling Techniques : Convenient Sampling and judgmental sampling


Sampling Area : Dehradun


Sample Size : 200




                                                                    57
LIMITATIONS

      • The company officials also too tend to give biased answers, as they

          always want to give a rosy picture of their company.

      • The responses can be biased, as some of the respondents may not have

          revealed the true pictures.

      • The managers were reluctant to give information about the product.


The sample was restricted to the Dehradun region only




                                                                              58
DATA ANALYSIS

                  QUESTIONNAIRE ANALYSIS


Q1. Do you have a mobile phone ?
    a) Yes       b) No


Q2. Are you aware about telecommunications service?

    a) Yes       b) No


       if yes, then which operators service do you use

              a) Tata Indicom
              b) Vodafone
              c) Airtel
              d) BSNL
              e) Reliance

Q3.Which of the following services do you use of Tata
Indicom?

             a) Prepaid                    b) Postpaid

Q4. Which services are more helpful to you while using
Tata Indicom services ?

                                                         59
a) Call rates                   b) sms service         c)
       Network      d)Value added services

Q5. Give your suggestions to help in services you better

  Name : ------------------

 Age: ----------- Year

  Sex: Male/ Female

 Contact No. ----------

                    Signature : --------------




                    USAGE OF CELLPHONE




                                                           60
NO
      14%




                            YES
                            86%




How long you are using Tata Indicom?




                                       61
Never used        5




> one month                       20




Two months        5




One month              10




              0   5   10    15   20    25




                                            62
Services provided by the Tata Indicom




                                        GOOD
                                         12%

POOR
 45%




                                               AVERAGE
                                                 43%




                                                     63
Rating of Existing Service Provider on the basis of prompt

            service provided to the customer




                  10%
  15%                                              30%




    20%
                                         25%


         AIRTEL         HUTCH           RELIANCE
         TATA INDICOM   MTNL




                                                             64
Best feature of your TATA INDICA




    All of the
     above                                        50

  40 paisa/mt
     STD             0


Free handset
                     0

 Free 400 mts
   outgoing
                     0

    Free
incoming/SMS             0

                 0           10   20   30   40   50    60




                                                            65
What problem do you find on your mobile?




                     None of the              Connectivity
                       above
All of the                                       20%
                        14%
 above
  16%




                                                   SMS
 Roaming                                           40%
   10%




                                                             66
CONCLUSION

The promotional strategies, I got to learn at Tata Indicom gave me an

in-depth knowledge about application of Marketing Strategies in real

terms. I could understand better the role of different strategies at

different stages of evolution of business. Training at Tata Indicom gave

me ample opportunity to apply my skill and knowledge in dealing with

customers, channel partners, managing office and also field work.

Through keen observation, I found that all the Promotional Strategies

are inter-related with each other and there is a greater role of timing

which mainly decides the success or failure of it in the long run. The

actions or strategies of the competitor are very keenly observed and

corrective action taken from time to time. The knowledge of the

industry and a regular update is quite essential to survive in this

changing business arena.

Moreover, I got to understand that in today’s telecom market, the

tariff plan must be so prepared that it can meet the requirements of

different sections of the society.

The company should roll-out ant future service only when it is fully

satisfied with the complete working of the same otherwise it will create

negative publicity as in the earlier stages of its commercial launch of

services.




                                                                      67
Employees also believe that integration of sales, marketing and

customer services function is must for achieving better relationship

with the customers.

Despite industry skepticism and tightening budgets, insurers              will

continue to invest in CRM with the pre-requisite that vendors are

able to      demonstrate that        significant returns can     be achieved.

Investments       through 2002 and 2003 will be         focussed on: smaller

scale projects to leverage greater returns out of existing systems,

the   development      of     operational   CRM   to   improve    distribution

strategies, and the integration of core processes such as claims. In

the highly      competitive    insurance landscape,     the main objective of

insurers   is    increasing    the value of their customer base. Customer

Relationship Management (CRM) is pivotal in achieving this.

A reliable, efficient Customer Relationship Management (CRM) solution

makes it easy to build lasting customer relationships, gives executives

the necessary resources to maximise their organisation.

In service sector like telecom, it is the quality which is important but

today’s market goes to those who can provide quality service at

affordable price. Here only the differentiator lies.

Finally, I concluded that it is the human effort which is responsible for

ultimate successes or failure. There is no limit to success and, so, as

it’s rightly said,


                                                                           68
“If you think you can    --- you can”.




                        SWOT ANALYSIS



STRENGTHS

• Cost advantage

• Current leaders in quality service

• Largest distribution network

• Ability to constantly innovate

• Highly skilled workforce

• Entrepreneurial zeal

• Tata’s increased equity and market cap.




WEAKNESSES

• To prove credibility

• Price pressures

• Need for Government support

• Awareness

• Sales and Marketing



                                            69
OPPORTUNITIES

• To sustain passion and commitment

• Tata’s market share increasing at other service provider expense.

  Thus opportunity to wipe it out.

• Attain higher value services

• Collaborative business needs to be explored

• Vertical repeatable solutions.

• Low penetration level in rural markets.




THREATS

• Foreign investment

• Global trends moving from GPS to WLL.

• Lack of global parity in telecom tariff

• Other competition




                                                                 70
• BIBLIOGRAPHY




•   Kotler,   Philip;   Amstrong,   Garg.   Principles   of   Marketing,
    Millennium Edition, Prentice Hall of India Ltd., New Delhi,
    2002.




• Tata Indicom. Sales guides
• Business World
• Times of India
• The Economic Times
• Web portals (customer helpdesk).
•   www.bsnl.com
•   www.mit.gov.in




                                                                      71

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indicom project report of tara saini

  • 1. A PROJECT REPORT ON “Employing the potential of Retail chain distribution of Tata Tele Services In partial fulfillment in award of PGDM Two Year Full Time Programme COMPANY GUIDE FACULTY GUIDE Mr. Neeraj Agrawal Mr. VIPUL SIR Assistant manager Sales & Marketing SUBMITTED BY TARA CHAND SAINI PGDM 4TH SEM (2009-2011) PRESIDENCY INSTITUTE INTERNATIONAL MANAGEMENT 1
  • 2. PREFACE The successful completion of this project was a unique experience for me because by visiting many place and interacting various person ,I achieved a better knowledge about sales . The experience which I gained by doing this project was essential at this turning point of my carrer this project is being submitted which content detailed analysis of the research under taken by me. The research provides an opportunity to the student to devote his/her skills knowledge and competencies required during the technical session. ACKNOWLEDGEMENT I express my sincere gratitude to my industry guide Mr. Neeraj Agrawal, Assist .manager – Sales & Marketing, Tata Teleservices Limited for his able guidance, continuous support and cooperation throughout my training, without which the present work would not have been possible. I would also like to thank the entire team of Tata Teleservies Limited, for their constant support and help in the successful completion of this project. Last but not least I would like to thank to all those who have directly or indirectly helped me in successful completion of my training. 2
  • 3. CERTIFICATE OF ORIGINALITY I, Tara Chand Saini S/o Shri Paras Ram saini, having Roll no. 1031 of Batch 2009-11, do hereby certify and declare that this research report titled employing the potential of Retail chain distribution of Tata Tele Services Is the result of my own work? This report contains no materials or information which has been previously submitted for any other academic diploma or degree, except where indicated otherwise. Date : Signature of the student : APPROVAL PAGE This report, entitled, employing the potential of Retail chain distribution of Tata Tele Services, prepared and submitted by, Tara Chand Saini, in partial fulfillment of the requirements for the degree of PGDM is hereby accepted Mr. Vipul (Faculty Guide) 3
  • 4. TABLE OF CONTENTS S. No. PARTICULARS PAGE NO- 1 INTRODUCTION OF COMPANY 5-9 2 CELLULAR TECHNOLOGY 10-15 3 LIST OF DOCUMENTS 16-17 4 HANDSETS 18-19 5 ADVANTAGES 20-23 1. INDIA TELECOM MARKET 24-30 2. INTRODUCTION TO THE INDUSTRY 31-39 3. MARKETING STRATEGY 40-48 4. BRAND AMBASSADORS & AWARENESS 49-54 5. RESEARCH METHOLOGY 54-57 6. DATA ANALYSIS 58-65 7. CONCLUSION 67-68 8. SWOT ANALYSIS & BIBILIOGRAPHY 69-71 4
  • 5. INTRODUCTION TO THE COMPANY Sir Ratan Tata Jamsetji Nusserwanji Tata (1871-1918) (1839-1904) Sir Dorabji Tata JRD Tata (1904-1993) TATA Group Major Milestones Year 1903: Started India’s first chain of luxury hotels with The Taj Mahal hotel in Mumbai. Year 1907: Pioneered India’s steel industry with Tata Steel set up in Jamshedpur. Year 1910: Started first power plant in India. Year 1932: Pioneered civil aviation in India. 5
  • 6. Year 1945: Led commercial vehicle production. Year 1968: Led India’s first software development company. Year 1998: Launched India’s first passenger car. The Tata Group comprises 93 operating companies in seven business sectors: information systems and communications; engineering; materials; services; energy; consumer products; and chemicals. The Group was founded by Jamsetji Tata in the mid 19th century, a period when India had just set out on the road to gaining independence from British rule. Consequently, Jamsetji Tata and those who followed him aligned business opportunities with the objective of nation building. This approach remains enshrined in the Group's ethos to this day. The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2004-05 of $17.8 billion (Rs 799,118 million), the equivalent of about 2.8 per cent of the country's GDP. Tata companies together employ some 215,000 people. The Group's 32 publicly listed enterprises — among them standout names such as Tata Steel, Tata Consultancy Services, Tata Motors and Tata Tea have a combined market capitalisation that is the highest among Indian business houses in the private sector, and a shareholder base of over 2 million. The Tata Group has operations in more than 40 countries across six continents, and its companies export products and services to 140 nations About TTSL Tata Teleservices is part of the INR 76,930 Crore (US$17.10 billion) Tata Group, that has over 90 companies, over 220,000 employees and more than 2 million shareholders. With an investment of over INR 9,000 Crore (US$ 2 billion) in Telecom, the Group has a formidable presence across the telecom valuechain. 6
  • 7. Tata Teleservices spearheads the Group's presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002, the company has swung into expansion mode. Tata Teleservices operates in 20 circles i.e. Andhra Pradesh, Chennai, Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal. The investment in Tata Teleservices Limited (including Tata Teleservices (Maharashtra) Limited) as of March 2005 totals INR 14,446 Crores (US$ 3.21 billion) Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has established a robust and reliable telecom infrastructure that ensures quality in its services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable, technologically advanced network. The company, which heralded convergence technologies in the Indian telecom sector, is today the market leader in the fixed wireless telephony market with a customer base of over 2.8 million for the period ended September05. Tata Teleservices' bouquet of telephony services includes Mobile services, Wireless Phones, Public Telephony Booth, and Wireline services. Other services include value added services like voice portal, roaming, 3-way conferencing, group calling and data services. The company has launched Prepaid FWP and Public phone booths, a range of 7
  • 8. new handsets, new voice & data services such as BREW games, picture messaging, polyphonic ring tones, interactive applications like news, cricket, astrology, etc. These are in addition to its existing services of Postpaid Mobile, Prepaid Mobile & Postpaid FWP. Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited serve more than 7 million customers in 1700 towns and aims at 4000 towns by March'06. With an ambitious rollout plan both within existing circles and across new circles, Tata Teleservices is offering world-class technology and user-friendly services in 20 circles. Values  Fairness through meritocracy.  Trust based on accountability.  Tenacity for results.  Pioneering spirits.  Excellence in execution.  Leadership with humanity. Mission To empower every Indian to connect with the world affordably. Vision Trusted service 100 million happy customers by 2011. The sectors, in which the TATA GROUP is into, are the following, namely: Agricultural appliances (Tata Agrico), agrochemicals (Rallis), books(Tata Mc Graw Hill), cellular products and services(Tata Indicom), ceramics (Tata 8
  • 9. Ceramics), charter flights( Taj Air), cooling appliances(Voltas), credit cards(Tata Sons), fertilizers(Tata Chemicals), financial services(Tata Asset Management, Tata Investment Corporation), food products(Tata tea, Tata coffee), garments and home products(Westside), holiday homes, home appliances(Tata BP Solar), hotels, fertilizers (Tata chemicals), insurance(Tata AIG Life Insurance, Tata AIG General Insurance), jewellery( Tanishq), multi utility vehicles and passenger cars (Tata Motors), telecommunications(Tata Indicom), watches (Titan) etc. The board of directors comprises of Mr. Ratan N. Tata Mr. N.A. Soonawala Dr. J.J. Irani Mr. J.K.Setna Mr. V.R.Mehta (Institutional Representative) Mr. R.Gopalakrishnan Mr. Nusli N.Wadia Mr. Helmut Petri Mr. S.A.Naik Mr. Ravi Kant Dr. V.Sumantran Mr. P.P.Kadle Mr. P.K.M.Fietzek 9
  • 10. 10
  • 11. CELLULAR TECHNOLOGIES Overview Wireless communications use the radio-frequency spectrum for transmitting and receiving voice data and video signals for communications. The common element of all wireless radio services is that they use a radio frequency or channel of a wire communicate to and from one or more locations. EVOLUTION OF CELLULAR TECHNOLOGIES Wireless mobile telephone systems have evolved through three generations: • First Generation (I G) Analog Systems • Second Generation (2G) Digital Systems-GSM, TDMA, CDMA • Third Generation (3G) Digital Systems First Generation Systems (1G): 1980s-Present The first generation cellular systems (1G), introduced. in the 1980s and early 1 990s, used analog cellular and cordless telephone technology. Networks based on 1 G analog dominated the majority of cellular networks till the early 1990s. Analog systems still operate in the US, with an estimated 49% of the end- 1999 subscriber base of 86.05 million. Other major countries where analog systems still 11
  • 12. predominate include Canada (63% of end 1999 subscriber base), Brazil (34% in 1999), the Philippines (52% in 1999), and Thailand (56% in 1999). However, by end 1999, subscriber base on analog technologies was only an estimated 177% of the global cellular subscriber base. Analog systems are more prone to interference, static, eavesdropping and cloning than digital systems. They also have several limitations, including lack of privacy and limited capacity. The traditional analog cellular systems, such as those based on the AMPS and TACS, use Frequency Division Multiple Access (FDMA). The FDMA technique enables multiple users to share the same region of spectrum, This standard supports clear communication and inexpensive mobile telephones, but the transmissions are easy to intercept on a standard radio receiver and therefore are susceptible to eavesdropping. Although technically simple to implement, FDMA is wasteful of bandwidth. Moreover, it cannot handle alternate forms of data, only voice transmissions. Significantly, the analog systems used one centrally located transmitter site, usually mounted very high up to achieve the greatest possible range. For the mobiles to transmit this far, they needed very high power. 12
  • 13. Because of this power requirement, hand held devices were out of the question, and portable ones filled a briefcase. Second Generation Digital Systems (2G): Early 1990s-Present During the early 1980s, even as analog cellular systems were first going into service, research and development of digital cellular systems were in progress. Digital cellular communications (2G Digital Systems) convert all voice transmissions to computer language (zeros and ones, or "binary" language) and then reconstruct them into the original voice format at the other end. Digital technology offers many advantages over analog technology, including: • Efficient use of available spectrum and substantially enhanced network capacity, due to • TDMA and CDMA, which allow a more efficient use of radio spectrum than the previous FDMA technology. • Easy integration with personal communication systems (PCS) devices, Superior quality of voice transmission over long distances. • Difficult to decode, enabling voice privacy. Can use lower average transmitter power, Enables smaller and less expensive individual receivers and transmitters. 13
  • 14. Opportunity to provide improved data transmissions in addition to voice because of digital transmission over a radio channel. • Enables long term digital handset cost reductions with economies of scale, since digital handsets have a lower power consumption and their functional intelligence can be squeezed onto fewer semiconductor chips. As a result, digital systems are currently the technology of choice throughout the world, with an estimated 82.3% of the global subscriber base by end- 1999 Two types of 2G Higher Tier systems were standardized and deployed in the 1990s. One is the cellular mobile systems which are more prevalent today and are characterised by the division of a geographical area into cells, typically 3-5 kms in radius, served by a radio station at its centre. The other are the Personal Communication Systems (PCS), which have much smaller cells, typically 200-500 meters in radius, and are supposedly more economical and better in quality. Personal Communication Systems (PCS) They have much shorter distances between mobile phones and the nearby radio station, which reduces the power required to transmit signals from the mobile phones, improving the voice quality and increasing data speed. However, in order to cover the same area, a larger number of cells (and radio stations) is required, thus making it 14
  • 15. suitable to more densely populated metropolitan areas. PCS has several advantages over existing cellular telephone service. They include better service quality through use of digital technology, more compact radio interface equipment, increased mobility, enhanced service features, and price. Third Generation Systems (3G): 2000 Onwards In 1985, the original concept for 3G wireless systems merged from an ITU initiative known as the Future Public Land Mobile Telecommunication System (FPLMTS). In 1996, FPLMTS was re- designated as International Mobile Telecommunications-2000 (IMT-2000). The number 2000 was chosen, because the ITU's timetable called for a standard to be defined by the year 2000. IMT-2000/3G is best understood as a minimum set of capabilities for delivering communications services. IMT-2000 does not define the air interface that will deliver the services, nor does it specify what the IMT-2000 services will be. 3G is an open, packet-based, networking strategy that enables integration of voice, data, and multimedia for wireless mobile networks worldwide. It would support higher data rates than do 2G systems and yet be less expensive. The IMT-2000 recommendations call for a wireless data speed of 144 kbps for high- speed mobile users, 384 kbps for users moving at pedestrian speeds, 15
  • 16. and 2 mbps for stationary users. The indoor radio channels typically support higher data rates with better reliability than does the outdoor channel used by persons moving rapidly. 3G would also advance other aspects of wireless communications by reducing equipment size, extending battery life, and improving ease of operation. The key features of IMT-2000 are high degree of commonality of design worldwide; compatibility of services within IMT-2000 and with the fixed network; superior two-way voice communication quality; small terminals for worldwide use; worldwide roaming capability; and capability for multimedia applications and a wide range of services (e.g. video-teleconferencing, high speed Internet, speech and high rate data). 16
  • 17. List of documents: List of Documents needed for a connection: The various documents that are needed for a post paid walky and mobile connection from Tata Indicom are the following: For the connection that is to be installed at residence: 1. Identity Proof (anyone): • Driving license • Voter’s identity card • Passport • Bank Pass Book, with a stamped a photo on it • Photo credit card. • Arms and Ammunition license 2. Proof of Residence (Anyone): • Passport • Driving license • Paid telephone bills (not more than 4 months old) • Paid electricity bills (not more than 4 months old) • Paid water bill (not more than 4 months old) • Vehicle registration certificate • Ration card • Municipal tax payment receipt 3. PAN Card or Form 60. 17
  • 18. For a connection that is to be installed at a shop or any business related location: 1. Proof of identity (Anyone) • Shops and Establishment Registration Certificate • Municipal Registration Proof • Sales Tax Registration Certificate • Memorandum of Association • Government Document sent from a government office 2. Proof of Address (Anyone) • Memorandum of Association signed by the Director • Sales Tax Registration Certificate • Municipal Registration Proof • Shops and Establishment Certificate • Telephone Bills (Not more than 4 months old) • Government document sent from the government office • Original Bank Statement attested is a bank official. 18
  • 19. HANDSETS Huawei 2285 Kyocera K122 Samsung Hero NXT 19
  • 20. Availability on Postpaid Yes Yes Availability on Prepaid Yes Yes Yes Brew 2.1.1.2/ Candy Bar/ B&W Mobile Tracker,Emergency SOS Unique feature Speaker phone & voice recorder Display with Colour Filter alert ,T9 Hindi&LMS B & W // Color B&W B/W with Colour Filter 4 Gray B&W T-Sim / Non T-Sim T-Sim NA T-SIM Display Size Type CSTN Monochrome, FSTN 1.33" , FSTN Screen Resolution standardised 96x65 96x64 128x128 format ( 128 X 90 etc) 100 (Inbox,OutBox& Draft)+ 20 SMS Yes Yes (50) Templates MMS NA No NA 12 Poly -30 Embeded ringtones& Ring tone type - Polyphony 32-Poly MIDI-12 Tata Zone FM Radio No NA No Speaker phone Yes NA No Games (2~3) No 1 2 Phone book memory 500 No Data Modem No Applications Platform No BREW BREW Lite Browser No NA No PC Sync No Phonebook Only Available Camera No NA No Video Capture No NA No Zoom No NA No MP3/ AAC Support No NA No Bluetooth No NA No Infrared Port No NA No External Memory Slot No NA No Email No NA No Touch Screen No NA No Touch Keypad No NA No Handwriting recognition No NA No Operating System REX Rex REX Document viewer No NA No Rigtones download & SMS based Tata Zone support No Yes services Battery Capacity 600mAh 900 mAh 800mAh Talk time 3-4 hrs 3.5 Hrs 3Hrs Stand-by time 150-190 Hrs 200 Hrs 215 Hrs Weight about 80g 78 gms 76.2 gms Video Streaming No 20
  • 21. Advantages of using TATA Indicom: Tata Indicom provides various facilities to its walky and mobile users. The various advantages are: • Phone book: The phone has a vast memory and can store up to 500 numbers, and in the models Axxestel and LG LSP 350 T, the phone book has a memory of 500 names and in front of each name, four numbers can be stored. So, it makes up to 2000 numbers. • Display: The display screen is wide that helps the customers to see clearly. • Large call history: The call book is very large, as it enables to check the call history, that is all 60 last dialed numbers, missed calls, as well as received calls. • Phone lock system: The customer can bar all the local as well as the STD calls being made from the phone by locking the phone by dialing the number given to the subscriber at the time of connection. • Caller Line Identification Process or CLIP facility: The user of the phone can identify the caller through this facility as the number from which a person is calling is displayed on the screen of the user. 21
  • 22. Call waiting and Voice mail facility: If the user is busy talking to a particular number, and any other person is trying to call him then the third number from which the user is getting a call will be displayed on the screen, along with a beep. • Closed user group: This facility is provided to only those customers who subscribe in bulk. If there are more than ten connections at a time by any person, or any society or even corporate, then they are given some special facilities in the form of concessions in the call charges, like the intra group calling will be free, and activation charges, like the amount needed for the activation of the phone will be wavered, i.e. it will be either reduced or there would be no deposits and no activation charges etc. • Voice mail: The user can use this facility and keep receiving the call indirectly, i.e., the message of the caller to that number will be recorded in the phone and the user can refer to it, afterwards according to his/her convenience. There are some other facilities also that are provided by the company, along with the above mentioned ones which are listed below. Those are: • Call forward: If a person wants to receive the call from other number, then the call can be forwarded to his/ her number through this facility. 22
  • 23. Internet facility: A customer can access Internet through the phones, with a speed of 120 kbps. • Hot line facility: This facility can be used in case of emergencies. For this a number is fed as “hot line number”. If the receiver is off the hook for one minute, then there is automatically calling to a number that has been fed as the hot line number. • Off hook facility: In this, the customer can receive a call even when the receiver is kept off the hook, i.e. if the receiver is not kept properly, then the line for this number will be engaged for first three numbers, and the fourth number which is being dialed to this particular number, will start ringing. There will be a beep, and then the phone will start working normally automatically. This is helpful as many-a-times the receiver is not kept properly by mistake. So, in those cases, this facility helps. • Call restriction: If the customer doesn’t want to receive a call from a particular number, then he/ she can block the number by calling to the customer care centre. Again, if he/she can block the calls from a particular city, or state just dialing the STD code of that particular place. The person who will be calling to these numbers will always find the numbers engage. 23
  • 24. Three way conference: A person can talk with up to one thousand people at a time. This can be achieved by just dialing the number and you can invite another person to talk to you. So, the chain can go on increasing till the total number of people who are on line is one thousand. • Pooling facility: This facility is provided mainly to the corporate or those customers who install more than five phones line connection from the company. In this facility, there is a sharing of the bills amongst these numbers. For example, if there are three departments in a office with different requirements and intensity for calling. And if the customer has subscribed to a plan in which he gets a free talk time of Rs.500. Now if department A has a monthly expenditure for Rs.800, department B has a monthly expenditure of Rs.200, and department C has a monthly calling of Rs 500. Then, the balance amount of Rs.500 of department A will be adjusted to the charge of department and, the subscriber would not have to pay the extra amount for the unutilized amount of the free talk time of department of as it automatically gets adjusted in department A’s account. Thus, this facility gives the customer value for money. 24
  • 25. Indian Telecom Market Indian telecom market has shown excellent performance in the fiscal 2005-06. Tele-density in India is galloping. The number of telecom subscribers in India grew by 41.2 million in 2005-06 to touch 140 million. According to the data, during 2005-06 the teledensity in the country grew 12.73 per cent. The large chunk of telecom subscribers are in the mobile phone category with the customer base in this segment growing 37 million to touch 90 million, according to the Telecom Regulatory authority of India (TRAI). The total subscriber base of fixed line phones stood at 49 million by the end of 2005-06. For mobile segment 5.03 million subscribers have been added during March 2006. The mobile additions consist of 3.78 million GSM subscribers and 1.25 million CDMA subscribers as against 3.17 million GSM and 1.11 million CDMA subscribers in the previous month. The total mobile subscribers at the end of March 2006 touched 90 million. In the fixed segment a total of 0.30 million subscribers were added during March 2006. With this the total subscriber base of fixed lines reached around 49.75 million. In fiscal '06, the increase was more than entire user base as recently as five years ago. The teledensity in India is still much less than the developed countries such as UK (102%) and USA (60%). India still lags China (23%). But it is catching up fast. This increase has been brought about mainly by the explosion in mobile subscriptions. Most of the recent growth has been in the mobile user base. 25
  • 26. In fiscal '01, out of the total increase of almost 7 million users, 6 million was for fixed line connections. The trend started shifting from fiscal '02, when the number of new connections added started to go down for fixed line and increased exponentially for mobile services. In fiscal '06, the number of new mobile connections added was close to 38 million, while the number of fixed line went up by only 3.8 million. That is almost 10 times more! But fixed line connections are going up again. Within the wireless space, the GSM segment still leads in absolute numbers. The GSM subscriber base continues to be more than 3 times the CDMA subscriber base. At the end of fiscal '06, the total number of GSM subscribers was close to 69 million users, while CDMA had close to 23 million. However, CDMA continues to grow at much faster rates than GSM. During the fiscal '06, GSM subscriptions grew at 68%, while CDMA connections grew at 86%. The largest mobile operator continues to be Bharti with 19.6 million subscribers, followed by Reliance Communications Venture Ltd with 17.4 million mobile users. State-owned Bharat Sanchar Nigam Ltd has 17.2 million subscribers and is third in the race at the end of March. At the end of April 2006, the total fixed-line telephone subscribers were about 47.51 million (against 46.78 million in March), taking the combined base of mobile and fixed telephony subscribers to 144.43 million. With the addition of 4.6 million new customers added in April, gross telecom subscriber base in India has grown to 144 million pushing the tele-density to 13.16 per cent. The tele-density was 12.73 per cent in March 2005. 26
  • 27. Operations in UP West [Dehradun Cluster] TTSL products offered in UP West Circle are CMO i.e. Mobile Service (Prepaid and Postpaid service), Walky (Fixed Wireless Phone) and PTB (Public Telephone Booth). These products are each being handled by separate departments. The UP West and Uttaranchal is further subdivided into smaller clusters which are : 1. Meerut. 2. Dehradun 3. Agra 27
  • 28. Demographic Details of major cities in UP West Circle 4 UP West Population Per Capita Income 2 w heelers w heelers TV Households Corp SME Bareilly 729,800 10,876 64,160 5,435 140,487 10 125 Dehradun 505,343 13,468 169,232 27,801 101,069 22 225 Meerut 1,167,399 18,237 176,873 19,443 245,154 10 480 Agra 1,321,410 13,669 289,942 29,563 277,496 15 658 Moradabad 641,240 11,380 101,528 7,342 118,629 5 280 Total 4,365,192 16,908 801,735 89,584 882,834 62 1,768 TOTAL UPW 53,508,148 11,668 1,295,804 126,714 125 NA Nursing Engg/Medical/ Branded Cinema UP West Doctors CA's Advocates Homes Mgmt Inst. Colleges Schools Universities stores Halls Bareilly 473 116 2,401 105 14 8 44 1 45 11 Dehradun 900 60 2,000 55 70 5 135 - 60 6 Meerut 790 263 3,536 123 17 10 110 2 45 17 Agra 1,260 350 3,200 190 17 6 140 2 65 28 Moradabad 358 52 1,267 50 3 5 40 - 35 9 Product Contribution – UP West UP West 24% 8% 62% 6% Walky Post Walky Pre CMO Post CMO Pre 28
  • 29. Role of Distributor: The responsibilities of Distributor towards the Retailer’s are: 1. Providing the retailers with the required stock to allow their proper functioning. 2. Keeping the retailers updated about changes in Changes in Tariff, Services and company’s policy of operation. 3. Timely collection of CAF from the retailers and submitting them to the customer care division of the company. 4. Providing the retailer with POP material to help them attract more customers. 5. Passing on the benefits given by the company to the retailers. The responsibilities of Distributor towards the Company are: 1. To maintain a stock of handsets for 15 – 21 days and that of RCV (Recharge Coupon Vouchers) for 7 – 14 days as directed by Tata Indicom. 2. To ensure placements of Indicom’s products so as to increase the availability and visibility. 3. To keep up superior relationship with all its retailers this would eventually lead to sales with recommendations from retailer. 4. Achieving the secondary sales targets given by the company. 5. Opening up on new retail outlets in order to increase the availability and penetration of company’s products and services. 6. Timely investment into business. 29
  • 30. Beat Plan Beat Plan is a schedule designed to make sure a certain number of visits to retailers by the FOS over a week. These visits depend on the number of handsets sold per month which are the basis for classification of retail outlets. Classification of Retail Outlets While preparing beat plan it becomes important to classify the retail outlets on the basis of volume of sales they provide. All the retail outlets of Tata Indicom were classified in four categories as under: Category Monthly Sales Frequency of FOS visits A Sales of > 15 handsets / month Daily B Sales of 10 – 14 handsets / month Once in 2 days C Sales of 5 – 9 handsets / month Once in 3 days D Sales of 1 - 4 handsets / month Weekly Class A retailers form only about 15% of all outlets but in terms of sales value they provide 60% – 70% of business. Thus a Class A retailer is precious to Tata indicom and needs to be given individual attention. Such a retail outlet is usually provided with better schemes, is more often visited by the FOS and is provided with the best POP (Point of Purchase) merchandise. For Sample Beat Plan please refer to Appendix C. Role of FOS The FOS (Feet on Street) is a person trained by the company who works with the distributor to make secondary sales, i.e. sales made by the distributor to the retailers. The FOS is responsible for product presentation, order taking, stock checking and collections on credit sales due to the distributor. 30
  • 31. Each FOS is accountable for 3 beats, each of 30 – 35 retailers. These beats are geographically allocated to different FOSs. The FOS makes visits to the retailers under his territory according to the beat plan, which specifies which all retailers are to be met on a given day. On these visits the FOS makes product presentation, highlighting the benefits of Tata Indicom over its competitors. He also lets the retailer know about the current promotional offers being floated by Indicom for its retailers and customers. The FOS provides the retailer with company merchandise and POP material, which increases the visibility of Tata Indicom, its products and schemes. This also helps the retailer make sales easily and earn a significant margin. Another key task performed by the FOS is “Order taking”, which includes the confirmation about the volume and value of the stock ordered and entering so in the order book. The FOS also handles the duty of stock checking, where he verifies the opening stock, the number of activations, stock of recharge coupons and the closing stock. He is also expected to have a fair idea about the competitor’s stock, number of activations and schemes as well. On the Distributor end the FOS is responsible for timely submission of the retailer’s orders and is liable to specify any special commitments made by him. 31
  • 32. INTRODUCTION TO THE INDUSTRY Telecommunications One of the fastest growing sectors in the country, telecommunications has been zooming up the growth curve at a feverish pace in the past few years. • The number of mobile phones (including 20.8 million WLL (M)) as on January 31, 2006, was about 83 million, which is over 63 per cent of the total number of phones in the country. • Over 32 million new telephones were added during April- January of the current financial year, with five million additions occurring in January alone, taking the total number of phones in the country to 130.8 million as on January 31, 2006. • Tele-density has increased from 8.8 per cent in January 2005 to 11.7 per cent at the end of January 2006. • According to the Telecom Regulatory Authority of India (TRAI's) quarterly performance indicators, Internet user base has grown 15 per cent from September 2004 to September 2005, with private operators accounting for 2.6 million users. • The gross subscriber base of the fixed and mobile services together reached 113.07 million at the end of the quarter 32
  • 33. July-September 2005, from 104.22 million as on June 2005, registering an increase of 8.49 per cent during the quarter. Under the Bharat Nirman Yojana, a total 66,822 villages are to be provided with village public telephones (VPT) by November 2007. Destination India The growth statistics of the sector combined with the government's decision to increase the foreign direct investment cap in the sector to 74 per cent is generating interest among global investors. India, one of the fastest growing countries in telecom manufacturing in the world, will attract another US$ 855 million as foreign investment over the next two years. • India has become the ‘crown jewel’ in Hong Kong-based Hutchison Telecom, contributing about 41 per cent of the group's total revenues of US$ 3.1 billion in 2005. This amounted to more than half of Hutch International’s gross profit. • Nokia calls India its stepping stone to success. It said that convergence and 3G products will increase exponentially from 33
  • 34. 2005-07 in Asia with key drivers being India along with Brazil and China. • The China-headquartered Haier group, with a global presence in home appliances and consumer electronics, has set up a joint venture for telecom in India for the handset and equipment business. • Nortel, North America's biggest telecommunications equipment provider, has signed a five-year deal to provide call centre services for Bharti, which has a more than 22 per cent market share of the mobile phone market in India. • Israeli telecommunications equipment maker ECI Telecom opened a new research and development centre in India in an effort to reduce the time to market new products. Global forays India offers an unprecedented opportunity for telecom service operators, infrastructure vendors, manufacturers and associated services companies. With global telecom bigwigs keenly looking at the fast-growing Indian market, domestic majors are busy dialing in new deals and expanding overseas. 34
  • 35. Bharti, which has been offering telecom services in Seychelles for the last seven years under the brand Airtel Seychelles Ltd., announced that it would soon launch next generation 3G services there with an initial investment of US$ 968,309. • Videsh Sanchar Nigam Ltd (VSNL) has said that SNO Telecommunications (PTY) Ltd, in which the company is a principal shareholder, has received a telecom licence to operate in South Africa. • The Tata Group will invest more than US$ 230-million in South Africa over the next three years to develop and operate telecommunication services. • Reliance Infocomm has joined hands with China Telecommunications to provide direct telecom connectivity for the first time between the two countries. It will now route communications traffic between India and China on a global network of its group company Flag Telecom. 35
  • 36. Telecommunication in India The Indian telecommunications Network with 77m telephone connections is the fifth largest in the world and is the second largest among the emerging economies of Asia. Today it is the fastest growing market in the world and represents unique opportunities for UK companies in the stagnant global scenario. Tele-density, which was languishing at 2% in 1999, has shown an impressive jump to 7% in 2005 and is set to increase to 20% in the next five years beating the Govt. target by three years. Accordingly, India requires incremental investments of USD 10-15 bln for the next five years. Private operators have made mobile telephony the fastest growing (over 164% p.a.) in India. With more than 33 million users (both CDMA and GSM), wireless is the principal growth engine of the Indian telecom industry. Given the current growth trends, cellular connections in India will surpass fixed line by late 2004/early 2005. Intense competition between the four main private groups - Bharti, Hutch, Tata and Reliance and with the State sector incumbents-BSNL and MTNL has brought about a significant drop in tariffs. There has been almost 74% in cell phone charges, 70% in 36
  • 37. ILD calls and 25% drop in NLD charges, resulting in a boom time for the consumers. The Government has played a key enabling role by deregulating and liberalising the industry, ushering in competition and paving the way for growth. While there were regulatory irregularities earlier, resulting in litigation, these have all been addressed now. Customs duties on hardware and mobile handsets have been reduced from 14 percent to 5 percent. The Indian government has merged the IT and Telecom Ministries to speed up reforms and decision on the Communication Convergence Bill to enable the common regulation of the Internet, broadcasting and telecoms will be taken after the new Government assumes responsibilities in may this year. An independent regulatory body (TRAI) and dispute settlement body (TDSAT) is fully functional. 37
  • 38. INDIAN CELLULAR MARKET The Bharti Group, which operates in 15 circles, continues to be the country's largest cellular operator, with 30.71 lakh subscribers. BSNL, which operates in 17 circles, has a subscriber base of 22.56 lakh subscribers. Thus BSNL stands second largest cellular operator in terms of subscriber base at the end of the fiscal ending March 31, 2005, displacing Hutchison from the second position. Hutch, which operates in only seven circles, is the third largest operator with a subscriber base of 21.64 lakh. Unlike fellow public sector undertaking, MTNL, which operates in Mumbai and Delhi, BSNL has been a very aggressive player in the market. "Cellular operators who expected BSNL to go the MTNL way, were taken by surprise and did not take effective steps to counter it, till it was too late in the day," said a telecom analyst. Belying fears of a slowdown in cellular subscriber acquisitions, the cell club has reported a 7.92% growth, the highest growth in any month so far, during March 2005. Year-on-year, the cellular subscriber base in the country has almost doubled to 1.27 crore in 38
  • 39. March 2005, a 97.29% growth over 0.64 crore in March 2004. The subscriber base was 0.36 crore in March 2003. The cellular subscriber club expanded by 9.31 lakh last month. This is much higher than 5.9 lakh subscribers added in February 2005 and 2.13 lakh in January 2005. Idea, which operates in five circles, is the fourth largest operator with a subscriber base of 12.80 lakh, higher than BPL's 11.31 lakh subscribers across four circles. The subscriber numbers per operator drop sharply with the sixth largest operator, Spice Communications, having a subscriber base of 6.40 lakh, followed by Escotel with a base of 5.87 lakh and Reliance Telecom's 5.41 lakh subscribers. MTNL is the ninth largest operator, with a base of 2.92 lakh subscribers, followed by Aircel's 2.3 lakh subscribers and Aircel Digilink's 1.83 lakh subscribers. RPG Cellular is the 12th largest operator with 1.79 lakh subscribers, followed by Hexacom's 1.32 lakh subscribers. The growth in the cellular subscriber base was seen to have slowed down in the past two months because of the hype created by limited mobility. Before that, monthly additions in the last three months of calender year 2004 averaged around 6.75 lakh. 39
  • 40. While the subscriber base-jumped by 3.38% to 44.39 lakh in the metros, subscriber base of category A circles of Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu jumped by 10.18 % to reach 43.64 lakh. Category B circles of Kerala, Punjab, Haryana, Uttar Pradesh (West), Uttar Pradesh (East), Rajasthan, Madhya Pradesh and West Bengal recorded a jump of 10.69%, with a total base of 33.74 lakh subscribers. Circle C has reported 12.74 % growth with subscriber numbers jumping to 5.08 lakh. Among the metros, while Mumbai added 63,180 subscribers, higher than the 58,646 added by Delhi, the Capital's cellular subscriber base of over 18 lakh is still higher than Mumbai's 16.89 lakh. Last year, the cellular subscriber base had grown by 79.78%, thus reaching 64.3 lakh, compared to 35.77 lakh in the year ending March 2001. While the cellular industry has been on roll for the first three quarters of the previous financial year with an average of 6.75 lakh monthly additions in the third quarter, the first two months of 2005 had seen the growth slowing down. 40
  • 41. MARKETING STRATEGY ADOPTED BY TATA INDICOM Tata-Indicom has spent a considerable amount on advertising its mobile phone service, Tata-Indicom. Besides print advertising, the company had put up large no of hoardings and kiosks in and around Delhi. The objective behind designing a promotion campaign for the ‘Tata- Indicom’ services is to promote the brand awareness and to build brand preferences. It is trying to set up a thematic campaign to build a stronger brand equity for Tata-Indicom. Since the cellular phone category itself is too restricted, also the fact that a Cellular phone is a high involvement product, price doesn't qualify as an effective differentiator. The image of the service provider counts a great deal. Given the Cell phone category, it is the network efficiency and the quality of service that becomes important. What now the buyer is looking at is to get the optimum price-performance package. This also serves as an effective differentiator Brand awareness is spread through the' campaigns and brand preference through 41
  • 42. brand stature. Tata-Indicom's campaign in the capital began with a series of 'teaser' hoardings across the city,' bearing just the company's name and without explaining what Tata-Indicom was. In the next phase the campaign associated Tata-Indicom with Cellular only thereafter was the Tata-Indicom Cellular connection brought up. Vans with Tata-Indicom logos roamed the city, handing out brochures about the company and its services to all consumers. About 50,000 direct callers were sent out. When the name was well entrenched in the Delhiites’s mind, the Tata- Indicom campaign began to focus on the utility of Cellphone. In the first four months alone Tata-Indicom 's advertisement spend exceeded Rs. 4 crores. As of today the awareness level Is 60% unaided. This implies that if potential or knowledgeable consumers are asked to name a Cellular phone service provider that is on the top of his/her mind 60% of them would name Tata-Indicom. As for aided it -is 100% (by giving clues and hints etc.). Brand strength of a product or the health of a brand is measured by the percentage score of the brand on the above aided and the unaided tests. The figures show that Tata-Indicom is a healthy and a thriving brand. 42
  • 43. Every company has a goal, which might comprise a sales target and a game plan with due regard to Its competitor. Tata-Indicom's campaign strategy is designed keeping in mind its marketing strategy. The tone, tenor and the stance of the visual ads are designed to convey the image of a market leader in terms of its market share. It tries to portray the image of being a "first mover every time" and that of a "market leader". The status of the product in terms of its life cycle has just reached the maturity stage in India. It is still on the rising part of the product life cycle curve in the maturity stage. The diagram on the left hand side shows the percentage of the users classified into heavy, medium and low categories. The right hand side shows the revenue share earned from the three types of users. Tata-Indicom, keeping in mind the importance of the customer retention, values its heavy users the most and constantly indulges in service innovation. But, since heavy users comprise only 15 - 20% of the population the other segment cannot be neglected. The population which has just realised the importance of cellular phones has to be roped in. It is for this reason that the service provider offers a plethora of incentives and discounts. Concerts 43
  • 44. like the "Freedom concert" are being organised by Airtel in order to promote sales. The media channel is chosen with economy in mind. The target segment is not very concrete but, there is an attempt to focus on those who can afford. The print advertisements and hoarding are placed in those strategic areas which most likely to catch the attention of those who need a cellular phone. The product promise (which might cost different 1 higher) is an important variable in determining the target audience. Besides this, other promotional strategies that Tata-Indicom has adopted are : (i) People who have booked Tata-Indicom services have been treated to exclusive premiers of blockbuster movies. Tata- Indicom has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent flier's programs. (ii) There have been educational campaigns, image campaigns, pre launch advertisements, launch advertisements, congratulatory advertisements, promotional advertise-ments, attacking advertisements and tactical advertisements. 44
  • 45. Operations in UP West [Dehradun Cluster] TTSL products offered in UP West Circle are CMO i.e. Mobile Service (Prepaid and Postpaid service), Walky (Fixed Wireless Phone) and PTB (Public Telephone Booth). These products are each being handled by separate departments. The UP West and Uttaranchal is further subdivided into smaller clusters which are : 1. Meerut. 2. Dehradun 45
  • 46. 3. Agra Demographic Details of major cities in UP West Circle 4 UP West Population Per Capita Income 2 w heelers w heelers TV Households Corp SME Bareilly 729,800 10,876 64,160 5,435 140,487 10 125 Dehradun 505,343 13,468 169,232 27,801 101,069 22 225 Meerut 1,167,399 18,237 176,873 19,443 245,154 10 480 Agra 1,321,410 13,669 289,942 29,563 277,496 15 658 Moradabad 641,240 11,380 101,528 7,342 118,629 5 280 Total 4,365,192 16,908 801,735 89,584 882,834 62 1,768 TOTAL UPW 53,508,148 11,668 1,295,804 126,714 125 NA Nursing Engg/Medical/ Branded Cinema UP West Doctors CA's Advocates Homes Mgmt Inst. Colleges Schools Universities stores Halls Bareilly 473 116 2,401 105 14 8 44 1 45 11 Dehradun 900 60 2,000 55 70 5 135 - 60 6 Meerut 790 263 3,536 123 17 10 110 2 45 17 Agra 1,260 350 3,200 190 17 6 140 2 65 28 Moradabad 358 52 1,267 50 3 5 40 - 35 9 Product Contribution – UP West UP West 24% 8% 62% 6% 46 Walky Post Walky Pre CMO Post CMO Pre
  • 47. DISTRIBUTION Company Franchisee Distributor Dealer Dealers Customer Customer The- company whose operations are concentrated in and around Delhi. It 27 Franchisees and 15 Distributors- They also have 8 'instant access cash card counters- Each franchises or distributor can have any number of dealers under him as long as the person is approved by the Tata-Indicom authority. Each franchises has to invest Rupees Ten Lakhs to obtain a franchise and should employ an officer recruited by Tata-Indicom. This person acts as an liaison between the company and the franchises. The franchises can it any number of dealers as long as their territories do not overlap. But unfortunately Tata-Indicom has not been very successful in 47
  • 48. controlling territorial overlaps of dealers. The franchises can carry out his 1 her own promotional strategy. For this the. company contributes 75% of the money and the franchises contributes 25% of the money. The dealers under the franchisee receive the same commission. The franchises and the dealer obtain the feedback from the customers and they are sent through the liaison officer on a day-to-day basis to Tata-Indicom. The dealer has to invest Rupees. One Lakh as an initial investment. The dealer of Tata- Indicom are not allowed to provide any other operators' service. Target set for distributors and the dealers is 100 -150 activations per month. Hence the dealers can also go for their own promotions like banners and discounts on festivals etc. The dealer provides service promptly. The consumer on providing the bill of purchase for the handset and proof of residence has only to wait an hour before getting connected. The staff of the dealers and the franchisees are provided training by the Tata-Indicom personnel. The complaints encountered by the franchisees and dealers are either handset being non-functional or the SIM Card not getting activated. Anything more complicated is referred to the main Tata- Indicom office in Delhi. 48
  • 49. TATA INDICOM OFFERS With Tata-Indicom, the subscriber wouldn't just get a personal phone that lets him/her be in touch, always, but also gets a host of benefits that let him/her manage his/her time like never before. An Tata-Indicom subscriber is provided with a Subscriber Identity Module Card (SIM card) - that is the key to operating his/her cellular phone. His card activates Tata-Indicom cellular services and contains a complete micro-computer chip with memory to enable one to enjoy one's cellular phone thoroughly. Each SIM card contains a PIN code (Personal Identity Number) which may be entered by one. Just plug your SIM card into your cellular phone, enter the PIN code and it becomes 'your' personal phone'. 49
  • 50. Brand ambassadors: Global companies have long understood the power and impact of associating popular personalities with their brand name and products. Most will agree that a successful brand ambassador can make or break a new product launch, or even catapult a company into a new era of exponential revenues after a long drought of fading brand clout. But these days choosing a brand ambassador isn’t what it used to be. Now, with the rapid diffusion of information made possible through the Internet, companies are seeing the dangers of making hasty decisions to link their products to public figures. In the past, reputations were not etched in stone, but were relatively stable and slow to change. Conversely, these days what goes around still comes around, only now this happens at the speed of light and travels to the ends of the world. The primary role of the brand ambassador is to personify the values intrinsic to the brand and evoke the dreams associated with owning the product. As such, he or she must demonstrate a trend of increasing popularity and notoriety in the markets where the advertising and promotion will be visible in order to reach the projected target groups effectively. The notoriety of the ambassador would be the magnet to attract a qualified target group to appropriate the brand. The conversion process would start with a prospect’s desire to purchase a certain type of product. The consumer’s ultimate choice of brand and model would then be influenced to some degree by identification with the brand ambassador. 50
  • 51. Tata has always associated itself with success. It has tried deliberately to be in the minds of the customers as the numero uno. For the same reasons, it has selected the most successful captain of Indian cricket team, Saurav Ganguly, s its brand ambassador. Saurav Ganguly can be associated with fame, success and glory. He brings leadership and experience with his image. Again the other brand ambassadors of the company are Narain Karthikeyan, Irfan Pathan, an d Sania Mirza. These are the youth icons, and the rationale behind employing them as brand ambassador is that they bring fresh energy as well as enthusiasm with in the mind of the customers. They are the voice and the face for Tata Indicom. Narain Karthikeyan is considered to be rationale. His is synonymous to speed and efficiency, and accuracy. Indicom intends to set a similar picture of its own in the minds of the customers. Irfan Pathan and Saurav Ganguly advertised for the prepaid sector, while Ajay Devgan and Kajol promote the post-paid sector of Tata Indicom. This couple is now one of the most popular couple in the glam world. They represent a happy go lucky, carefree, yet successful pair. At the same time, the company portrays the couple as very conscious about choosing the right thing out of the available choices. They always mention in the advertisements that this is the most cost effective and the most suitable telephonic service that one can chose. 51
  • 52. Brand awareness of Indicom Brand awareness is when people recognize your brand as yours. This does not necessarily mean they prefer your brand (brand preference), attach a high value to, or associate any superior attributes to your brand, it just means they recognize your brand and can identify it under different conditions. Brand awareness consists of both brand recognition, which is the ability of consumers to confirm that they have previously been exposed to your brand, and brand recall, which reflects the ability of consumers to name your brand when given the product category, category need, or some other similar cue. . . 52
  • 53. The benefits of a strong brand Here are just a few benefits people will enjoy when company create a strong brand: • A strong brand influences the buying decision and shapes the ownership experience. • Branding creates trust and an emotional attachment with the company or with the product. This attachment then helps the company to make decisions based, at least in part, upon emotion-- not necessarily just for logical or intellectual reasons. • A strong brand can command a premium price and maximize the number of units that can be sold at that premium. • Branding helps make purchasing decisions easier. In this way, branding delivers a very important benefit. In a commodity market where features and benefits are virtually indistinguishable, a strong brand will help the customers to trust the company and create a set of expectations about the company’s products without even knowing the specifics of the product features. • Branding will help the company to "fence off" the customers from the competition and protect the market share of the company while building mind share. Once the company has mind share, the customers 53
  • 54. will automatically think of the company and its products first when they think of buying the necessary product. • A strong brand can make product features virtually significant. A solid branding strategy communicates a strong, consistent message about the value of the company. A strong brand helps the company to sell the values and tangibles that surround the products of the company. • A strong brand signals that the company wants to build customer loyalty, not just to sell the products. A strong branding campaign will also signal that the company is serious about marketing and that it is intended to be around for a while. A brand impresses the company’s firm identity upon potential customers, not necessarily to capture an immediate market but rather to build a lasting impression of the company and the products. • Branding builds name recognition for the company or the product. • A brand will help the company to articulate the company's values and explain why the company is competing in the market. 54
  • 55. Tata Indicom has also concentrated on this aspect and thus has done a lot of things to create strong brand awareness for the company. For example, it has painted the entire exterior of local trains, giving its advertisements on them. The idea is about surrounding the consumer in 360 degrees. As consumers move away from conventional media, this kind of fragmentation and micro targeting is bound to happen in many ways. Again, in smaller towns, it has advertised heavily in the market places. Even it has used a large number of billboards, banners, and occupied space in the print media advertisements. RESEARCH METHODOLOGY Title : Marketing Strategies of Tata Indicom Data Collection The methodology adopted for this project is exploratory in nature since there is no hypothesis that has to be tested. The conclusions have been drawn by exploratory research work. There have been two sources of information collected: a) Primary Sources 55
  • 56. I have met retailers of the Tata-Indicom of the company and have been able to get first hand information regarding the product, its features and the buying patterns of the product. Their input has been valuable. b) Secondary Sources Secondary source has played a vital role to play in this report. A good amount of data has been collected from various published articles and reports found in magazines and journals. Another vital source has been the Internet and particularly the companies own website. Objectives of the study • To study the importance and development of tele – communication industry in today’s scenario. • To understand the various Marketing Strategies which Tata Indicom has adopted to survive in highly competitive cell phone industry. • To make a comparative study of the major players in Indian Service Provider. 56
  • 57. Scope of the study • To identify the marketing programs being run by Tata Indicom and to study the impact of marketing strategies on Tata Indicom. SIGNIFICANCE FOR THE RESEARCH : To facilitate in appreciative of marketing situation of Tata Indicom. RESEARCH TECHNIQUES SAMPLING METHODOLOGY Sampling Unit : Individuals & Families Sampling Techniques : Convenient Sampling and judgmental sampling Sampling Area : Dehradun Sample Size : 200 57
  • 58. LIMITATIONS • The company officials also too tend to give biased answers, as they always want to give a rosy picture of their company. • The responses can be biased, as some of the respondents may not have revealed the true pictures. • The managers were reluctant to give information about the product. The sample was restricted to the Dehradun region only 58
  • 59. DATA ANALYSIS QUESTIONNAIRE ANALYSIS Q1. Do you have a mobile phone ? a) Yes b) No Q2. Are you aware about telecommunications service? a) Yes b) No if yes, then which operators service do you use a) Tata Indicom b) Vodafone c) Airtel d) BSNL e) Reliance Q3.Which of the following services do you use of Tata Indicom? a) Prepaid b) Postpaid Q4. Which services are more helpful to you while using Tata Indicom services ? 59
  • 60. a) Call rates b) sms service c) Network d)Value added services Q5. Give your suggestions to help in services you better Name : ------------------ Age: ----------- Year Sex: Male/ Female Contact No. ---------- Signature : -------------- USAGE OF CELLPHONE 60
  • 61. NO 14% YES 86% How long you are using Tata Indicom? 61
  • 62. Never used 5 > one month 20 Two months 5 One month 10 0 5 10 15 20 25 62
  • 63. Services provided by the Tata Indicom GOOD 12% POOR 45% AVERAGE 43% 63
  • 64. Rating of Existing Service Provider on the basis of prompt service provided to the customer 10% 15% 30% 20% 25% AIRTEL HUTCH RELIANCE TATA INDICOM MTNL 64
  • 65. Best feature of your TATA INDICA All of the above 50 40 paisa/mt STD 0 Free handset 0 Free 400 mts outgoing 0 Free incoming/SMS 0 0 10 20 30 40 50 60 65
  • 66. What problem do you find on your mobile? None of the Connectivity above All of the 20% 14% above 16% SMS Roaming 40% 10% 66
  • 67. CONCLUSION The promotional strategies, I got to learn at Tata Indicom gave me an in-depth knowledge about application of Marketing Strategies in real terms. I could understand better the role of different strategies at different stages of evolution of business. Training at Tata Indicom gave me ample opportunity to apply my skill and knowledge in dealing with customers, channel partners, managing office and also field work. Through keen observation, I found that all the Promotional Strategies are inter-related with each other and there is a greater role of timing which mainly decides the success or failure of it in the long run. The actions or strategies of the competitor are very keenly observed and corrective action taken from time to time. The knowledge of the industry and a regular update is quite essential to survive in this changing business arena. Moreover, I got to understand that in today’s telecom market, the tariff plan must be so prepared that it can meet the requirements of different sections of the society. The company should roll-out ant future service only when it is fully satisfied with the complete working of the same otherwise it will create negative publicity as in the earlier stages of its commercial launch of services. 67
  • 68. Employees also believe that integration of sales, marketing and customer services function is must for achieving better relationship with the customers. Despite industry skepticism and tightening budgets, insurers will continue to invest in CRM with the pre-requisite that vendors are able to demonstrate that significant returns can be achieved. Investments through 2002 and 2003 will be focussed on: smaller scale projects to leverage greater returns out of existing systems, the development of operational CRM to improve distribution strategies, and the integration of core processes such as claims. In the highly competitive insurance landscape, the main objective of insurers is increasing the value of their customer base. Customer Relationship Management (CRM) is pivotal in achieving this. A reliable, efficient Customer Relationship Management (CRM) solution makes it easy to build lasting customer relationships, gives executives the necessary resources to maximise their organisation. In service sector like telecom, it is the quality which is important but today’s market goes to those who can provide quality service at affordable price. Here only the differentiator lies. Finally, I concluded that it is the human effort which is responsible for ultimate successes or failure. There is no limit to success and, so, as it’s rightly said, 68
  • 69. “If you think you can --- you can”. SWOT ANALYSIS STRENGTHS • Cost advantage • Current leaders in quality service • Largest distribution network • Ability to constantly innovate • Highly skilled workforce • Entrepreneurial zeal • Tata’s increased equity and market cap. WEAKNESSES • To prove credibility • Price pressures • Need for Government support • Awareness • Sales and Marketing 69
  • 70. OPPORTUNITIES • To sustain passion and commitment • Tata’s market share increasing at other service provider expense. Thus opportunity to wipe it out. • Attain higher value services • Collaborative business needs to be explored • Vertical repeatable solutions. • Low penetration level in rural markets. THREATS • Foreign investment • Global trends moving from GPS to WLL. • Lack of global parity in telecom tariff • Other competition 70
  • 71. • BIBLIOGRAPHY • Kotler, Philip; Amstrong, Garg. Principles of Marketing, Millennium Edition, Prentice Hall of India Ltd., New Delhi, 2002. • Tata Indicom. Sales guides • Business World • Times of India • The Economic Times • Web portals (customer helpdesk). • www.bsnl.com • www.mit.gov.in 71