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A

PROJECT REPORT

ON

“Comprehensive marketing environment analysis with respect to products,


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

Faculty of Management Studies


Institute of Rural Management, Jaipur

In Partial Fulfillment for the requirement of the


Award of

Post Graduate Diploma in Business Management


2009-2011

SUBMITTED TO: SUBMITTED BY:


Mrs. Asha Sharma Sarvjeet Arora
Project Guide PGDBM- II Sem.
FMS-IRM Roll no.1501
Jaipur FMS-IRM, Jaipur
Mb.+9982727427

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Faculty of Management Studies
Institute of Rural Management, Jaipur

CERTIFICATE

Certified that this project report entitled “Comprehensive marketing environment


analysis with respect to products, customers & competitors” & “launching a new Retail
Store” is a record of project work done by Mr. Sarvjeet Arora under my guidance and
supervision and that it has not previously formed the basis for any degree, associate
ship, fellowship to him.

Date: (Mrs. Asha Sharma)


Faculty Guide

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DECLARATION

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


respects to products, customers & competitors” & “launching a new retail store” is a
bona fide record of work done by me during the course of summer project and it has
not previously formed the basis for the award to me for any degree, diploma, associate
ship, fellowship or other similar title of any other society/institute.

Date: Sarvjeet Arora


PGDBM SEM- II
Roll.no.1501
Enroll.no. BM/JULY/09/22/2011

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ACKNOWLEDGEMENT

The Summer Project on “Comprehensive marketing environment analysis with


respect to products, customers & competitors” & “launching a new Retail Store”
offered a great learning experience. During the tenure of this project, I was fortunate to
have interacted with people, who in their own capacities have encouraged and guided
me.
Firstly, I would like to express my sincere gratitude to HR Department of Tata Tele
Services Ltd. for providing me an opportunity to undergo summer training in
Marketing Department of such a reputed organization. Working with one of the
organization was a great learning experience.
My sincere thanks go to Mr. Jaivardhan Bhardwaj (A.M., MARCOM Retail
Business), for trusting my potentials by giving me such a valuable project. I would
also thank him for providing his guidance and support in completing this project. He
has been extremely helpful and cooperative. Without his support & critical evaluation
this project could not have been completed successfully.
I extend my heartiest thanks to Brig. S. K. Gaur (Director FMS-IRM), FMS-IRM
faculty members for their regular assistance all through the project and i would also
thank Mrs. Asha Sharma, (Project Guide, FMS-IRM), for the direction and purpose
she gave to this project through her invaluable insights, which constantly inspired me
to think beyond the obvious.

Sarvjeet Arora
PGDBM II Sem.
FMS-IRM
Jaipur.

CONTENTS

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S.No. Topic Page No.
1 Executive Summary 7
2 Global Telecom Industry: An Overview 8
2.1 Some Facts of Global Telecom Market 12
3 Indian telecom industry 15
4 Rajasthan telecom market 19
5 Company profile
4. 5.1 Overview 20
4 5.2 Organizational structure 22
4. 5.3 Vision & mission 24
4. 5.4 Corporate functions 25
5.5 Key Milestone’s 30
6 Research Methodology
6.1 Research Objectives 32
6.2 Research Design 32
6.3 Limitations of Study 33
6.4 Review of Literature 34
7 Analysis and Interpretation 36
7.1 Analysis with respect to products & customers
7.1.1 Survey on the use of mobile network (urban 37
area)
7.1.2 Survey on the use of mobile network (rural 45
area)
7.1.3 Survey on the use of internet services (urban 53
area)
7.1.4 Survey on the use of internet services (rural 60
area)
7.2 Analysis with respect to competitors
7.2.1 Competition tracking-01
7.2.1.1 Comparison of various company 67
owned retail stores
7.2.1.2 Factor analysis
7.2.1.3 Comparison of TATA INDICOM store 76
with OBR
7.2.2 Competition tracking-02
85
7.2.2.1 Comparison of competitor’s trade
schemes
89
7.2.2.2 Activities of various market players
93
7.3 Launching a new retail store 94
7.3.1 Distribution channel of TTSL
7.3.2 Store Location 96
7.3.3 Store Branding 98
99
7.3.4 Deliverables to retailers by TTSL
99

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7.3.5 Deliverables to TTSL by retailers
7.3.6 Launching a new store 100
8 Findings and recommendations 102
9 SWOT analysis 104
10 Conclusion 105
11 Bibliography 106
12 APPENDIX
12.1 Questionnaire 107

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EXECUTIVE SUMMARY

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


incomplete if subjected to practical exposure of real corporate world, challenges and
problem that one has to face at actual work place.MBA is an insight oriented training
program. An incumbent learns the real functioning of knowledge in terms of practical
application. A learner’s appreciable understanding plays the vital role in his/her
management principles and practice simulation to prepare him or her for real business
encounters.

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


my findings. This report gives concentric focus to:

“Comprehensive marketing environment analysis with respect to products,


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

It is practical study of marketing environment which focuses on trend of voice & data
in rural & urban areas of Jaipur. It also provides a comprehensive picture of
competitor’s current activities in the market.

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

Launching a new retail store provides the knowledge of distribution channel &
importance of retailers.
The comparison of company owned retail stores critically hints the importance of key
factors i.e. products & services. Regular update and education of retailers and
customers is important to make a tidal difference to sales and buying perception.

GLOBAL TELECOM INDUSTRY: AN OVERVIEW

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Think of telecommunications as the world's biggest machine. Strung together by
complex networks, telephones, mobile phones and internet-linked PCs, the global
system touches nearly all of us. It allows us to speak, share thoughts and do business
with nearly anyone, regardless of where in the world they might be. Telecom
operating companies make all this happen.
Not long ago, the telecommunications industry was comprised of a club of big
national and regional operators. Over the past decade, the industry has been swept up
in rapid deregulation and innovation. In many countries around the world,
government monopolies are now privatized and they face a plethora of new
competitors. Traditional markets have been turned upside down, as the growth in
mobile services out paces the fixed line and the internet starts to replace voice as the
staple-business.
Plain old telephone calls continue to be the industry's biggest revenue generator, but
thanks to advances in network technology, this is changing. Telecom is less about
voice and increasingly about text and images. High-speed internet access, which
delivers computer-based data applications such as broadband information services and
interactive entertainment, is rapidly making its way into homes and businesses around
the world. The main broadband telecom technology - Digital Subscriber Line
(DSL) - ushers in the new era. The fastest growth comes from services delivered over
mobile networks.
Of all the customer markets, residential and small business markets are arguably the
toughest. With literally hundreds of players in the market, competitors rely heavily on
price to slog it out for households' monthly checks; success rests largely on brand
name strength and heavy investment in efficient billing systems. The corporate
market, on the other hand, remains the industry's favorite. Big corporate customers –

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Concerned mostly about the quality and reliability of their telephone
calls and data delivery - are less price-sensitive than residential customers. Large
multinationals, for instance, spend heavily on telecom infrastructure to support far-
flung operations. They are also happy to pay for premium services like high-security
private networks and videoconferencing.
Telecom operators also make money by providing network connectivity to other
telecom companies that need it, and by wholesaling circuits to heavy network users
like internet service providers and large corporations. Interconnected and wholesale
markets favor those players with far-reaching networks.

KEY TERMS

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND


AMORTIZATION (EBITDA):
An indicator of a company's financial performance calculated as revenue less
expenses.
AVERAGE REVENUE PER USER (ARPU):
Used most in the context of a telecom operator's subscriber base, ARPU sometimes
offers a useful measure of growth performance. ARPU levels get tougher to sustain
competition, and increased churn exerts a downward pressure. ARPU for data services
have been slowly increasing.
Churn Rate : 
The rate at which customers leave for a competitor. Largely due to fierce competition,
the telecom industry boasts - or, rather, suffers - the highest customer churn rate of
any industry. Strong brand name marketing and service quality tends to mitigate
churn.
BROADBAND :
High-speed internet access technology.

ANALYST-INSIGHT

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

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

Another popular performance yardstick is EBITDA. EBITDA provides a way for investors to gauge
the profit performance and operating results of telecom companies with large capital expenses.
Companies that have spent heavily on infrastructure will generally report large losses in their
earnings statements. EBITDA helps determine whether that new multimillion dollar fiber-optic
network, for instance, is making money each month, or losing even more. By stripping away
interest, taxes and capital expenses, it allows investors to analyze whether the baseline business is
profitable on a regular basis.
Investors should be mindful of cash flow. EBITDA gives an indication of profitability, whereas cash
flow measures how much money is actually flowing through the telecom operator at any given
period of time. Is the company making enough to repay its loans and cover working capital? A
telecom company can be recording rising profits year-by-year while its cash flow is ebbing away.
Cash flow is the sum of new borrowings plus money from any share issues, plus trading profit, plus
any depreciation.
Keep an eye on the balance sheet and borrowing. Telecom operators frequently have to ring up
substantial debt to finance capital expenditure. Net debt/EBITDA provides a useful comparative
measure. Again, the lower the ratio, the more comfortably the operator can handle its debt
obligations. Credit rati ng agencies like Moody's and Standard & Poor's (S&P) take this ratio
very seriously when evaluating operators' borrowing-risk.

PORTER'S 5 FORCES ANALYSIS :

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1. Threat of New Entrants.  It comes as no surprise that in the capital-intensive
telecom industry the biggest barrier to entry is access to finance. To cover high fixed costs,
serious contenders typically require a lot of cash. When capital markets are generous, the threat of
competitive entrants escalates. When financing opportunities are less readily available, the pace of
entry slows. Meanwhile, ownership of a telecom license can represent a huge barrier to entry. In
the U.S., for instance, fledgling telecom operators must still apply to the Federal
Communicati ons Commission (FCC) to receive regulatory approval and licensing. There is also a
finite amount of "good" radio spectrum that lends itself to mobile voice and data applications. In
addition, it is important to remember that solid operating skills and management experience is
fairly scarce, making entry even more difficult.
2. Power of Suppliers.  At first glance, it might look like telecom equipment suppliers have
considerable bargaining power over telecom operators. Indeed, without high-tech broadband
switching equipment, fiber-optic cables, and mobile handsets and billing software, telecom
operators would not be able to do the job of transmitting voice and data from place to place. But
there are actually a number of large equipment makers around. There are enough vendors,
arguably, to dilute bargaining power. The limited pool of talented managers and engineers,
especially those well versed in the latest technologies, places companies in a weak position in
terms of hiring and salaries.
3. Power of Buyers.  With increased choice of telecom products and services, the bargaining
power of buyers is rising. Let's face it; telephone and data services do not vary much, regardless of
which companies are selling them. For the most part, basic services are treated as a commodity.
This translates into customers seeking low prices from companies that offer reliable service. At the
same time, buyer power can vary somewhat between market segments. While switching costs are
relatively low for residential telecom customers, they can get higher for larger business customers,
especially those that rely more on customized products and services.
4. Availability of Substitutes.  Products and services from non-traditional telecom industries
pose serious substi tuti on threats. Cable TV and satellite operators now compete for buyers. The
cable guys, with their own direct lines into homes, offer broadband internet services, and satellite
links can substitute for high-speed business networking needs. Railways and energy utility
companies are laying miles of high-capacity telecom network alongside their own track and
pipeline assets. Just as worrying for telecom operators is the internet: it is becoming a viable
vehicle for cut-rate voice calls. Delivered by ISPs - not telecom operators - "internet telephony"
could take a big bite out of telecom companies' core voice revenues.
5. Competitive Rivalry.  Competition is "cut throat". The wave of industry deregulation together
with the receptive capital markets of the late 1990s paved the way for a rush of new entrants. New
technology is prompting a raft of substitute services. Nearly everybody already pays for phone
services, so all competitors now must lure customers with lower prices and more exciting services.
This tends to drive industry profitability down. In addition to low profits, the telecom industry
suffers from high exit barriers, mainly due to its specialized equipment. Networks and billing
systems cannot really be used for much else, and their swift obsolescence makes liquidati on
pretty difficult.

SOME FACTS OF GLOBAL TELECOM MARKET

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 With global mobile phone penetration rate reaching
approximately half of the global population, growth momentum of global
subscribers is likely to slow down after 2009. The CAGR of global mobile
phone subscribers is expected to reach 7.9 percent during the period 2007-2012,
boosting the number of global mobile phone subscribers to 4.5 billion in 2012,
with penetration rate hitting 64.7 percent, up from 46.8 percent in 2007.
 Rollout of "3G for All" promotional programs in major countries, growth of
global GSM/GPRS/EDGE subscribers is likely to slow down gradually.
 CDMA/HSDPA will take over converted subscribers of GSM/GPRS/EDGE,
boosting its market share to 24.7 percent in 2012 from 6.7 percent in 2007.
 Global CDMA 2000 1x EV-DO subscribers will start to decline from 2009, due
to the fact that Australian telecom operators Telstra and Hutchison decided to
abandon CDMA and switch to W-CDMA for cost concerns. Hence, global
CDMA subscribers are expected to reach 492 million in 2012, with a 10.9
percent market share.
 The GSM system -- including GSM, GPRS, EDGE, WCDMA, HSPA -- has got
an upper hand over UMB in the market. LTE is likely to enter
commercialization in 2011. The CDMA system, including CDMA/EV-
DO/UMB, will be limited due to global roaming problems.
 Competition is intensifying from existing and new players.
 Significant price erosion.
 Customers have far greater choice in communications.
 Growing demand for broadband.
 Emerging markets delivering significant growth.
 Continued significant regulatory pressure.

DISTRIBUTION OF GLOBAL MOBILE SERVICES REVENUES

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INDIAN TELECOM INDUSTRY

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

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

Value-Added Services (VAS) Market

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

Major Investments

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

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

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

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

Going Global

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

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

3G Services

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

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

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

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

Manufacturing

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

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

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

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

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

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

Rural Telephony

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

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

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

Policy Initiatives

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

 In the area of telecom equipment manufacturing and provision of IT-enabled services, 100 per
cent FDI is permitted.
 No cap on the number of access providers in any service area. In 2008, 122 new Unified Access
Service (UAS) licenses were granted to 17 companies in 22 services areas of the country.

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

 To provide infrastructure support for mobile services a scheme has been launched to provide
support for setting up and managing 7,436 infrastructure sites spread over 500 districts in 27
states. As on December 31, 2009, about 6,956 towers had been set up under the scheme.

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

 This is applicable in case of Basic, Cellular, Unified Access Services, National/ International Long
Distance, V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal
Communications Services (GMPCS) and other value added Services.
 Both direct and indirect foreign investment in the licensee company shall be counted for the
purpose of FDI ceiling. Foreign Investment shall include investment by Foreign Institutional
Investors (FIIs), Non-resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs),
American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and convertible
preference shares held by foreign entity. In any case, the 'Indian' shareholding will not be less
than 26 per cent

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

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

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

The Road Ahead

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

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

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

TELECOMMUNICATION INDUSTRY OF RAJASTHAN


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

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

Telecommunication Service Providers in Rajasthan

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

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

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

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COMPANY PROFILE

OVERVIEW
Tata Teleservices Limited spearheads the Tata Group’s presence in the telecom sector. The Tata
Group had revenues of around US $62.5 billion in Financial Year 2007-08, and includes over 90
companies, around 350,000 employees worldwide and more than 3.2 million shareholders.

Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x technology platform in
India. It has embarked on a growth path since the acquisition of Hughes Telecom (India) Ltd
[renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. It launched mobile
operations in January 2005 and today enjoys a pan-India presence through existing operations in all
of India’s 22 telecom Circles. The company is also the market leader in the fixed wireless telephony
market. The company’s network has been rated as the ‘Least Congested’ in India for last four
consecutive quarters by the Telecom Regulatory Authority of India through independent surveys.

Tata Teleservices Limited now also has a presence in the GSM space, through its joint venture with
NTT DOCOMO of Japan, and offers differentiated products and services under the TATA

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DOCOMO brand name. TATA DOCOMO arises out of the Tata Group’s strategic
alliance with Japanese telecom major NTT DOCOMO in November 2008. TATA DOCOMO has
received a pan-India license to operate GSM telecom services—and has also been allotted spectrum
in 18 telecom Circles and will roll out its services shortly, starting with South India. The GSM
network of the company is expected to match the robust and reliable 3G-compliant telecom
infrastructure it has developed for CDMA services.

The company also recently announced a unique reverse equity swap strategic agreement between its
fully-owned telecom tower subsidiary, Wireless TT Info-Services Limited, and Quippo Telecom
Infrastructure Limited—with the combined entity kicking off operations with 18,000 towers, thereby
becoming the largest independent entity in this space—with the highest tenancy ratio in the Indian
telecom industry. Within two years, the new entity will have a portfolio of 50,000-plus towers.

Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd, serves over 36
million customers in more than 320,000 towns and villages across the country, with a bouquet of
telephony services encompassing Mobile Services, Wireless Desktop Phones, Public Booth
Telephony and Wire line Services. Other services include value-added services like Voice Portal,
Roaming, Post-paid Internet Services, Three-way Conferencing, Group Calling, Wi-Fi Internet, USB
Modem, Data Cards, Calling Card Services and Enterprise Services. Some of the other products
launched by the company include Pre-paid Wireless Desktop Phones, Public Phone Booths, Mobile
Handsets and Voice & Data Services such as BREW Games, Voice Portal, Picture Messaging,
Polyphonic Ring Tones, and Interactive Applications like news, cricket, astrology, etc.

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ORGANIZATIONAL STRUCTURE

The Marcom function for HNI BU looks into all the activities related to the marketing of Postpaid
Mobile, Wireless Phones - Walky, Internet Access Devices and high end handsets. This includes
activities right from determining the Positioning for our offerings in the HNI market, Consumer
Research (pre Launch & post launch) to evaluate consumer response & constructing an effective Go-
to Market plan for the launch of any new product service launched by the HNI BU.

 VAS

Tata Tele Services Ltd. 21


VAS or Value Added Services is seen as the future of the Telecom Industry in
India. Be it Internet services, multimedia messaging, WAP-Java enabled content, BREW Data
services, Caller tunes or other infotainment services; Tata Indicom has not only redefined this
sector but is constantly spearheading the VAS revolution in India With a plethora of services
under the ‘i-Chill’ and ‘Tata Zone’ portals there’s something for everyone whether you are
looking to download songs and caller tunes, live news and sport updates, Bollywood content,
religious tunes and services or wish to know your horoscope instantly! With the launch of the
free of cost ‘i-help’ services Tata Indicom introduced a first of its kind service which allows you
to get in touch with your near and dear ones instantly in case of an emergency. With new
frontiers like social networking, mobile advertising, m-commerce, utility and enterprise services
the future of the Tata Indicom mobile headset as a convergence device is assured. The future is
bright, the future is VAS!

VISION
 Trusted service to 100 million happy customers by 2011
 To be a Strategic Partner in Business, making TTSL an “Employer of Choice”
 Deliver a new world of communications to advance the reach and leadership of our customers.

MISSION
 To empower every Indian to connect with the world affordably
 To provide competent & “CRISP” Human Resource in the organization.

Tata Tele Services Ltd. 22


 To create innovative and flexible people-centered programs and services to
attract and retain best & the brightest talent.
 To create a culture of performance, this encourages teamwork, learning & innovation.
 To create a leadership pipeline based on organizational values
 To enrich quality of life of the employee for Work-Life balance

OUR VALUES
 Integrity: Trust Travels: We must conduct our business fairly, with honesty and transparency.
Everything we do must stand the test of public scrutiny. 
 Understanding: Open the world: We must be caring, show respect, compassion and humanity
for our colleagues and customers around the world, and always work for the benefit of the
communities we serve. 
 Flexibility: Act Agile: Work to create, design and grow in an environment that supports our
customers and people with adaptive thinking and action.

Tata Tele Services Ltd. 23


 Excellence: Go the Distance: We must constantly strive to achieve the highest
possible standards in our day-to-day work and in the quality of the goods and services we
provide.
 Unity: Journey as One: We must work cohesively with our colleagues across the Group and
with our customers and partners around the world, building strong relationships based on
tolerance, understanding and mutual cooperation.
 Responsibility: Advance Life: We must continue to be responsible, sensitive to the countries,
communities and environments in which we work, always ensuring that what comes from the
people goes back to the people many times over.

COMMITMENT
Invest in building long-lasting relationships with customers and partners and lead the industry in
responsiveness and flexibility.

STRATEGY
Build leading-edge IP-leveraged solutions advanced by our unmatched global infrastructure and
leadership in emerging markets.

CORPORATE FUNCTIONS
The major corporate functions of TTSL are.
1. Corporate Services
a. Facilitate and develop strategy for TTSL
b. Facilitate development of technology road map for TTSL.
c. Support the development of long term and short term plans for TTSL.
d. Build a competitive intelligence system.
e. Facilitate AOP/ABP development
f. Develop 900 Day plan strategy

Tata Tele Services Ltd. 24


g. Plan and support cascading of strategy
h. Provide inputs and/or develop White paper.
i. Facilitate, Participate and Lead projects
j. Respond to TATA Group's Strategy initiatives
k. Develop segmentation framework 
l. Regulatory Affairs
m. Legal & Secretarial
n. Strategy
o. BPR
p. CRM

2. Corporate Sustainability: Earlier this year, Tata Teleservices Limited worked with TCCI to
finalize what, in Tata Group parlance, is called The Big Picture. The Big Picture identifies
the areas in which a Tata company will carry out its Corporate Sustainability initiatives. For
Tata Teleservices, the Big Picture identified the two areas of ‘Education’ and ‘Environment’.
With Employee Volunteerism being the central driving force here is a glimpse of the Big
Picture.

Tata Tele Services Ltd. 25


Our Projects :
 Education
 Empowering Persons with Disabilities
 Employee Volunteer Program me
 Social Awareness Campaigns       
 Livelihood Creation and Income Enhancement       
 Publications       

3. Marketing: These are the major areas.


 HNI BU
 Marcom -Brand     
 Enterprise Business Services
 Marcom - CMBU     
 Marcom - ABU     
 Retail Marketing     
 Media Marcom

4. Finance 

5. HR & FMS  
        
6. IT   
      
7. Technology 

 Tata Teleservices has Unified Access Service licenses for 18 circles and 3 more approved for
new circles. Along with TTML (Tata Teleservices Maharashtra Limited) it covers over 6000
towns and has 11630 cell sites. With over 57,000 Kilometer of network backbone – Tata
Indicom’s network is one of the largest in the country. With licenses for J&K, Assam & North
East obtained in January 2008, network coverage is currently installed and services are expected
to launch by 2008-09. Tata Teleservices is also striving to offer affordable services in rural areas
with cost effective network model for rural rollout and wide coverage in rural areas which is
constantly expanding.

Tata Tele Services Ltd. 26


8. Business Excellence: The story of Business Excellence at TTSL started in 2001 when TTSL
was a one circle operation at AP. The primary focus at that time was on TBEM. As TTSL grew
and expanded its footprint across the nation, BE too grew. Over the years many other areas like
Propel, Quality Assurance Audits, VMV co-creation & Customer Insight too came under the BE
umbrella. Today BE stands for `delivery’ by taking up initiatives and completing them within
stipulated time.
Business Excellence covers the following areas:
 VMV – Co-creation and Cascade
 TATA Business Excellence Model
 QMS: TL 9000 Certification
 Process Management
 Knowledge Management
 Quality Service Assurance
 Project PROPEL
 Customer Insights
 Annual Improvement Plan
 BE Update Newsletters 

9. TTSL Information Security

NETWORK ACROSS INDIA

To allow for ease of operations, Telecom is geographically divided into Circles. At TTSL, these
Circles operate as independent functional units and are each headed by a Chief Operating Officer
(COO). Tata Teleservices today has a Pan-India presence with operations in 20 Circles.

Tata Tele Services Ltd. 27


MILESTONES

 2008:
 NTT Docomo and Tata agree on strategic alliance in India.
 2007:
 Tata Teleservices crosses the 18 million subscribers milestone
 Tata Teleservices become first service provider to launch its online store “I-
choose”.
 2006:
 Tata Indicom launches its unique single T-Sim card based “One world One
Number” International Roaming Service across CDMA/GSM countries.
 Tata Indicom subscriber base crosses the 10 million mark nationally in June
06.
 2005:

Tata Tele Services Ltd. 28


 Tata Indicom completely rolls out its services in 20
circles nationally.
 Tata Indicom services made available in 1500 cities. Tata Indicom crosses the
1500 cities mark.
 Tata Indicom launches its first own exclusively branded phone under the
name “Indicom Gem”.
 2004:
 Tata Indicom repositions its Fixed Wireless phone category under the brand
name “Walky”.
 Tata Indicom launches its Prepaid services under the brand name “Truepaid”.
 Tata Indicom subscriber base crosses the 2 million mark by registering 300%
growth in Fixed Wireless phone category.
 Tata Indicom launches roaming service across five circles.
 2003:
 Tata Indicom subscriber base crosses the 8 Lakhs. CDMA Mobile service
launched in Maharashtra.

 2002:
 Tata Teleservices Ltd. unveils its new brand Tata Indicom while launching its
services in Delhi, Gujarat, Tamil Nadu and Karnataka.
 Tata Teleservices Ltd. acquires Hughes telecom, a company which has a
strong presence in basic telephony in the state of Maharashtra and Goa.
 Tata Teleservices Ltd. launches Digital DSL data services.
 2001:
 Tata Teleservices Ltd. is among the first three private basic telecom service
providers in the country, to be awarded the Letter of Intent (LoI) to provide
basic telecom services in 15 other states of India.
 Tata Teleservices Ltd. becomes the first private basic telecom service provider
in the country to launch limited mobility services- Tata Indicom CDMA
mobile.
 1999:

Tata Tele Services Ltd. 29


 Tata Teleservices Ltd. becomes first private basic telecom
service provider to launch services in the state of Andhra Pradesh.
 First private telecom service provider in the country to offer Centrex to its
customers.
 1998:
 First to introduce the concept of smart card technology in Pay Telephone
Business. Tata Teleservices Ltd. has signed up with Schlumberger of France
to establish payphone network.
 1997:
 License agreement signed with DoT for operating basic telephone services.

“Comprehensive marketing environment analysis with respect to products,

customers & competitors & launching a new Retail Store”

OBJECTIVES

 To analyze the marketing environment for TTSL.


 To find out the market penetration of TTSL.
 Comparative analysis with major telecom players.
 Study of consumer behavior.
 To discover ways to enhance market share of TTSL.
 To determine the existing customer satisfaction level.

Tata Tele Services Ltd. 30


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

RESEARCH METHODOLOGY

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

Sampling: Convenient sampling

Sample size: 150 (for each survey)

Statistical Tools: Hypothesis Tests, Charts and Graphs.

Area Covered: Jaipur (Rural & Urban).

Type of data collection technique:


 Primary data
 Questionnaire

 Secondary data
 Secondary data for the purpose of the study was collected from company reports,
internet and magazines.

PRACTICAL UTILITY OF THE STUDY

The customer survey will help companies to gather information about awareness level of people
about TTSL products, their buying behavior and force behind their decision. The survey will help
companies in devising new promotional strategies for attracting new customers in order to increase
sales growth. . The Stores survey conducted will help company to gather information about
competitor’s stores, to come across various factors which are responsible for churning of store and
reduced sales. The survey would also help the future researchers as it would provide them substantial
data for their research work.

LIMITATIONS

 Time constraints.

Tata Tele Services Ltd. 31


 Some time, customer decision does not reveal the correct information.
 The field work was in Jaipur only and only one area study does not reveal the whole market
situation.
 Busy schedule of corporate guide and his team.
 Busy schedule of people.
 Business Month End Closing.

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

REVIEW OF THE LITERATURE

THE MARKETING ENVIRONMENT

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

Tata Tele Services Ltd. 32


THE MACRO ENVIRONMENT
This includes all factors that can influence an organization, but that are out of their direct control. A
company does not generally influence any laws. It is continuously changing, and the company needs
to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization
means that there is always the threat of substitute products and new entrants. The wider environment
is also ever changing, and the marketer needs to compensate for changes in culture, politics,
economics and technology.

THE INTERNAL ENVIRONMENT

Tata Tele Services Ltd. 33


All factors that are internal to the organization are known as the internal
environment. They are generally audited by applying the ‘five Ms’ which are Men, Money,
Machinery, Materials & Markets. The internal environment is as important for managing change as
the external. As marketers we call the process of managing internal change `internal marketing’.
Essentially we use marketing approaches to aid communication & change management.

The external environment can be audited in more detail using other approaches such as SWOT
analysis, Michael Porter’s Five Forces analysis or PEST-analysis.

ANALYSIS AND INTERPRETATION OF DATA

Data analysis is a process of gathering, modeling, and transforming data with the goal of
highlighting useful information, suggesting conclusions, and supporting decision making. Data
analysis has multiple facets and approaches, encompassing diverse techniques under a variety of
names, in different business, science, and social science domains.

This project entitled “Comprehensive marketing environment analysis with respect to products,
customers & competitors” & “launching a new Retail Store” is completed in number of phases

Tata Tele Services Ltd. 34


which include survey on the use of mobile network, survey on the use of internet
services, survey on company owned retail stores. For analyzing the results, we have used Chi Square
test, factor rating analysis, weighted average method and percentage. For Interpretation, Bar charts
and Pie Charts are used.

ANALYSIS WITH RESPECT TO PRODUCTS & CUSTOMERS

SURVEY ON THE USE OF MOBILE NETWORK (URBAN AREA)

Customers involved in the survey-

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

1. How long have you been using this network?

Tata Tele Services Ltd. 36



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

2. Customer’s preference

Tata Tele Services Ltd. 37


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

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

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 Various people were disappointed with the services of their mobile service
provider due to following reasons:
o Bad network coverage

o High call rates

o Un fair charges

o Lack of good schemes for subscribers

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

Tata Tele Services Ltd. 39


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

5. Mobile phone usages

Tata Tele Services Ltd. 40


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

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

Tata Tele Services Ltd. 41


 The above trend indicates customer’s preferences while purchasing a new mobile
connection.
 The trend indicates that call rates are the most important parameter while purchasing a
new mobile connection.

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

Tata Tele Services Ltd. 42


 The above trend indicates that most of the people are satisfied with their
present mobile service provider.
 Some people were not satisfied due to various reasons:
o High call rates

o Bad network coverage

o Specific needs

Survey on the use of mobile network (rural area)

Tata Tele Services Ltd. 43


Customers involved in the survey-

 The above trend indicates the percentage of the subscribers of various


telecom companies participated in the survey.

Tata Tele Services Ltd. 44


1. How long have you been using this network?

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

Tata Tele Services Ltd. 45


2. Customer’s preference

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

Tata Tele Services Ltd. 46


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

 In rural areas following were the reasons for disappointment-


o Bad network coverage
o High call rates

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

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

5. Mobile phone usages

Tata Tele Services Ltd. 48


 The above trend indicates that the usage of GPRS & multimedia facilities of
mobile phone is negligible in rural areas.
 Most of the people use their mobile for calling & messaging.

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

Tata Tele Services Ltd. 49


 The above trend indicates customer’s preferences while purchasing a new mobile
connection.
 The trend indicates that call rates and network coverage are the most important parameter
while purchasing a new mobile connection.

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

Tata Tele Services Ltd. 50


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

Survey on the use of internet services (urban area)

Tata Tele Services Ltd. 51


1. Which Broad band Network you use?

 The above trend indicates the percentage of the subscribers of varoius


companies participated in the survey.

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

Tata Tele Services Ltd. 52


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

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

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

Tata Tele Services Ltd. 53


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

4. Parameters of customer’s satisfaction

Tata Tele Services Ltd. 54


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

 Feasible cost in the top priority of the customer.

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

Tata Tele Services Ltd. 55


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

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

Tata Tele Services Ltd. 56


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

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

Tata Tele Services Ltd. 57


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

Survey on the use of internet services (rural area)

Tata Tele Services Ltd. 58


1. Which Broad band Network you use?

 The above trend indicates the percentage of the subscribers of varoius


companies participated in the survey.

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

Tata Tele Services Ltd. 59


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

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

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

Tata Tele Services Ltd. 60


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

4. Parameters of customer’s satisfaction

Tata Tele Services Ltd. 61


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

 Feasible cost in the top priority of the customer.

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

Tata Tele Services Ltd. 62


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

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

Tata Tele Services Ltd. 63


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

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

Tata Tele Services Ltd. 64


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

ANALYSIS WITH RESPECT TO COMPETITORS

Tata Tele Services Ltd. 65


COMPETITION TRACKING-01

COMPARISON OF VARIOUS COMPANY OWNED RETAIL STORES

1. Outer appearance

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

 Vodafone along with Tata indicom scores high in this parameter.

2. Internal environment

Tata Tele Services Ltd. 66


 This parameter indicates the internal environment of the stores.

 Vodafone scores high due to following reasons:


o Automated token system.

o Automated payment system.

o Store ambiance was good.

o Peaceful environment.

o Soft background music.

o Attractive interiors.

o Active pantry.

3. Executive’s behavior

Tata Tele Services Ltd. 67


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

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

4. Executive’s knowledge

Tata Tele Services Ltd. 68


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

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

5. Problem solving approach

Tata Tele Services Ltd. 69


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

6. Variety of plans (voice & data)

Tata Tele Services Ltd. 70


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

7. Communication skills

Tata Tele Services Ltd. 71


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

8. Handset availability

Tata Tele Services Ltd. 72


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

9. Over-all impact

Tata Tele Services Ltd. 73


10. O

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

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


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

Tata Tele Services Ltd. 74


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

The Mobile Store format is a one stop mobile solution shop that provides, multi
brand handsets, accessories, connections, repairs, VAS etc. all under one roof.
The Mobile Store currently has more than 1050 outlets and the vision is to have a
network of 2500 stores by 2010 across 650 cities, thus covering virtually every major
town in every state across India.

Tata Tele Services Ltd. 75


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

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

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

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

Tata Tele Services Ltd. 76


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

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

Tata Tele Services Ltd. 77


Hotspot outlets with their range of products and services have the capability
to fulfill customers’ every need. At present, the product portfolio comprises
mobile handsets, accessories, airtime connections, recharge vouchers,
gaming devices and television services. Over and beyond this, Hotspot is all
set to retail other related telecom products and services. Recently, Hotspot
has launched its own range of accessories and its own service centers across
the country in an effort to address customer issues effectively and
efficiently.
 
Starting operations in 2005, with a small team of 15 people, Hotspot has
come a long way. In less than 2 years, the Chain has grown exponentially.
Today, it employs more than 2000 people. In the years ahead, the Chain is
expected to play a leading role in enhancing the profitability of the group.
 
The growing demand for mobile devices, accessories and connections is
expected to drive the number of Hotspot outlets to 1000 by the end of this
year, and more than double by the next. What’s more, by the end of the
Financial Year 2009-2010, the numbers of Hotspot outlets are expected to go
up to 3000.

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

The Product Portfolio

Mobile Phones – wide range and multi-brand


 Network connections and recharge options

Accessories – Memory cards, blue-tooth devices, headsets, screen


protectors, phone covers, etc.

Value Added Services – Ring tones, Music downloads, Games, etc

Tata Tele Services Ltd. 78


Exchange offerings.

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

Insurance, extended warranty, AMC, finances.

The Value Offering

Sales, After Sales and VAS

Competitive pricing enabled by volume economics and supply chain


linkages.

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

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

Hot Spot is able to leverage these tie-ups to ensure delivery of quality


products, experience and best value to the customer.

Launched “Hot Spot” branded range of accessories.

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

Tata Tele Services Ltd. 79


Tata Tele Services Ltd. 80
A Tata Indicom exclusive store

Comparison between TMS, HOTSPOT & TTSL stores

Features Hotspot TMS TTSL


Avg.no. of Agents in
Store 2 3 5
Servicing Agents in
Store 1 2 4
Connections,
Focus Handsets Handsets data
Product
Knowledge(Plans
From Operator) Average Good Good
Communication &
Soft Skills Average Excellent Good
Visibility of
Merchandize Average Excellent Good
Cricket
theme,
Summer Add on
Present Offers Nil carnival plan
Approx. 10 Low
%Lesser Variance
than in
Handsets pricing TTSL pricing As per M.O.P
Handsets range Large Very Large Large
Look & feel Average Very Good Good

Tata Tele Services Ltd. 81


Offer communication at THE MOBILE STORE

Tata Tele Services Ltd. 82


Competition tracking-02
The Competitor’s Trade Schemes Tracked:-

July’10:-
Competitor’s Trade Scheme Tracked – All Zones this week:-

Brand Scheme Eligibility (Points)


5 Liter Water Camper 300 Points
20 Gms Silver / 3 PC Carresrol / Steam Iron 650 Points
30 Gms Silver / Branded Ceiling Fan 1000 Points
45 Gms Silver / Juicer Mixer Grinder 1500 Points
110 Gms Silver / HP Photo Copier F4488 3500 Points
3 Gms Gold / 7.0 Mega Pixel Digital Camera /
Home Theater 5500 Points
250 Gms Silver / Microwave 7500 Points
Airtel
5 Gms Gold / Washing Machine / 19" LCD / HP
Photo Copier 10000 Points
7 Gms Gold / 1.5Ton AC / Handy Cam 15000 Points
15 Gms Gold / 32" LCD / Laptop 30000 Points
18 Gms Gold / Bike CD Dawn 35000 Points
30 Gms Gold / Bike Honda Passion 55000 Points
50 Gms Gold 90000 Points
TATA Nano Car 125000 Points
MTS No such scheme tracked
Eveready Tourch 06 Points
Vodafone Travel Bag 11 Points
10 Gms Silver / 10 Ltr Water Camper 21 Points
15 Gms Silver 31 Points
Vodafone 25 Gms Silver 51 Points
40 Gms Silver 76 Points
1 Gms Gold 101 Points
1 Gms Gold + 40 Gms Silver 151 Points
Hong Kong Trip (4 Retailers) Highest Activation
TATA
Dhoom Macha De* (Mentioned Separately)
Indicom
Reliance
No Such Scheme Tracked -

Rajwada  - 4th Scheme* (15 Points on every


IDEA (Mentioned Separately)
Activation & 03 Points on every Rs.100/- ER)

Tata Tele Services Ltd. 83


 

TATA Indicom Dhoom Macha De


Incentive per Activation on all
Activation Target Actv.
3 Mt Avg Activations
Category
(Base Slab) Slab A Slab B Slab C Slab A Slab B Slab C

A 0 0 1 to 3 4 to 7 Rs.30
B 1 <=1 2 to 5 6 to 8
I 2 to 3 <=3 4 to 7 8 to 12
II 4 to 6 <=6 7 to 11 12 to 16
III 7 to 10 <=11 12 to 16 17 to 22
IV 11 to 15 <=16 17 to 22 23 to 32
V 16 to 20 <=22 23 to 32 33 to 40 Nil Rs.25
VI 21 to 30 <=32 33 to 40 41 to 60
VII 31 to 40 <=44 45 to 60 61 to 80
VIII 41 to 50 <=54 55 to 70 71 to 90
IX 51 to 75 <=84 85 to 100 101 to 125
X 76 to 100 <=114 115 to 130 131 to 150
XI 100 to 150 <=174 175 to 200 201 to 250

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Trend of selling free prepaid connections-

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

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

• Promotional activities

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LAUNCHING A NEW RETAIL STORE

CONTENTS

1. Distribution channel of TTSL

2. Store location

3. Store branding

4. Deliverables to retailers by TTSL

5. Deliverables to TTSL by retailers

6. Launching a new store

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1. Distribution channel of TTSL

Business Units

In order to understand the needs of the customers and serve their specific needs
well, TTSL has undertaken in-depth customer segmentation. This customer
segmentation has led to creation of the various Business Units like.

 Access Business Units   
Tata Indicom is India's leading standardized and branded private PCO service
provider with over 1 million PCO connections across India. The Tata Indicom SMART
PCO has been a pioneer in the PCO market. It has changed the face of business by
introducing innovative and technologically advanced solutions in the market such as
the standardized password protected billing machine, 16 kHz switch based billing,
ergonomic booth etc. It is the only company today that provides all the equipments
and support needed to run a PCO and is a “One Stop Shop for all PCO needs”.

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 TTSL Retail Business: Tata Indicom is today India's no. 1 retail chain in terms of
number of stores and it will be quite a while before anybody catches up. Tata
Indicom currently already operates its retail business nationally through over
3300 outlets comprising of 600 TTSL owned stores and more than 2500 stores in
the Franchisee format. Tata Indicom already covers the top 1000 towns in India
has more than 3300 Retail Stores all over India. This is the largest branded retail
presence amongst all telecom operators in the country and in fact, makes Tata
Indicom the largest retailer in India in terms of number of stores under one brand
name. The 2 retail formats which

existed earlier i.e. True Value Hubs and True Value Shoppes have both been brought
under one umbrella of Tata Indicom Exclusive Stores.

 Consumer Market: The Consumer Market Business Unit (CMBU) deals with the large
and dynamic pre-paid segment of the telecom sector. Tata Indicom has always been
at the forefront of market innovation in this segment. Be it attractive bundled
packages (handsets + connections) or cheapest tariff plans, Tata Indicom have been
constantly re-inventing the market to fulfill its mission of empowering every Indian
to connect with the world affordably. Tata Indicom was the first to introduce a ‘first
of its kind’ offer - Non Stop Mobile in the Mobile prepaid market.
 Enterprise: The Enterprise Business Service function drives business growth &
customer centricity by providing telecom related solutions to Corporate Entities. The
EBS function also undertakes customer relationship management and retention
along with revenue enhancement and channel management.

 Emerging Business

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 High Net worth Individual

2. Store Locations

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Location of various TATA INDICOM exclusive stores in Jaipur city

1. Vaishali nagar

2. DCM, ajmer road

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3. Mansarovar

4. New sanganer road

5. Jhotwara

6. Tonk road

7. Malviya nagar

8. Rajapark

9. M.I.road

10. Sansar Chandra road

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3. Store branding-

 Store branding is done through various merchandizing materials:

o GSB’s (glow sign boards)

o Wall coverings

o Standees

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o Canopies

o Catalogs

o Free bees

o Pamphlets

o Posters

o Live demo

4.Deliverables to retailers by TTSL-

o Store branding

o Regularly updating Merchandizing material

o Providing attractive profit margins

o Providing attractive sales incentives

o Offering better products & services

o Providing assistance & guidance

o Providing better after sale services

o Handling customer issues

o Dealing with stock issues

5. Deliverables to TTSL by retailers-

Retailers help in-

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o Increase in revenue

o Capturing high market share

o Retaining the customer with the brand

o Communicating organization’s offers to the customer

o Handling customer’s issues

o Building brand image

6. Launching a new store-

o Store location- Chaura Rasta, Jaipur

o Store type- Multi branded retail outlet

o Products & Services- Prepaid & postpaid mobile connections


,internet ,recharge vouchers ,mobile handsets & mobile phone
repairing

o Various offerings by TATA INDICOM to the retailer-

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


coverings

 Attractive profit margins in products as compare to the other


competitors.

 Complete assistance & guidance about products & services.

 Regular updates about offers & schemes.

 Tips for more revenue generation.

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o Store name-

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


authorities.

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

7. Present status-

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

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MAJOR FINDINGS

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


pre-paid.

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


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

 Complaints majorly because of VAS charges.

 Most of the customers compare TTSL’s voice products with Reliance & Data
products with BSNL & MTS.

 Most of the customers prefer GSM rather than CDMA.

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

 Huge rural market is untapped.

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

 AIRTEL is offering attractive plans & services & aggressively selling free prepaid
mobile connections.

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RECOMMENDATIONS-

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


stop churning.

 Company should improve after sales services.

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


competitors are selling free connections.

 Company should improve merchandizing as the retailers are not getting


regular updates & merchandizing material about new offers & schemes.

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


network coverage.

 The employees can call back to customers at least once in a month for getting
the feedback of the services offered.

 Company should introduce unlimited plans in photon+.

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


decrease the price of photon+.

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


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

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SWOT ANALYSIS

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CONCLUSION

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The project “Comprehensive marketing environment analysis with
respect to products, customers & competitors” & “launching a new retail store”
provides knowledge about trend of voice & data in rural & urban areas.

It describes the customer’s preferences with respect to usage & buying behavior. The
study emphases that a huge rural market is still untapped & there is a strong need to
improve the services in rural areas.

Survey of company owned retail stores highlighted the premier quality services of
Vodafone store through various parameters.

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


market. Competition tracking was done on various parameters i.e. current offers,
marketing activities & trade schemes.

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

Launching a new retail store describes the distribution channel & provides knowledge
about the deliverable from the both sides i.e. company & retailer.

BIBLIOGRAPHY

Websites

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 www.trai.gov.in
 www.dot.gov.in
 www.tataindicom.com
 www.telecomwatch.in
 www.telecomupdate.net

Books
 Kotler, Philip. Marketing Management. 13th Edition; Prentice Hall of
India 2009.
 Kothari, C.R. Research Methodology. Second Revised Edition; New Age
International (P) Publishers 2008

Reports
 Tata Teleservices annual report

APPENDIX
Survey on the use of mobile network

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

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

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

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

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

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


[Ty [Ty [Ty [Ty
3. What influenced you to use this network?

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

4. Which network do you like to prefer?

A. GSM B. CDMA

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

A. Yes B. No
[Ty [Ty
If yes, what disappointed you about the service? ……………………………………………………………………………

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


A. One B. Two C. Three D. > Three
[Ty [Ty [Ty [Ty
7. You often use your phone to:
A. Call B. SMS C. GPRS D. Multimedia
[Ty [Ty [Ty [Ty
8. Buying a new mobile network connection, which feature is most important for you?
A. Call rates D. Brand Name
B. SMS pack E. Value added services
C. Roaming charges

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

Date: Signature of Customer

SURVEY ON THE USE OF INTERNET SERVICES

1. Which Broad band Network you use?


A. Reliance
B. TATA
C. MTS
D. BSNL
E. Idea
F. Airtel

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

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A. Yes
B. No
C. Some Time Fast And Some Time Slow

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

A. Highly satisfied
B. Moderately satisfied
C. Neither satisfied Nor Dissatisfied
D. Moderately dissatisfied
E. Highly dissatisfied

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

A. Feasible Cost
B. High Speed
C. Easy to Use anywhere

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

A. Yes
B. No
C. Partially

6. Do you think that use of the broad band net connector improves your work efficiency?
A. Yes
B. No
C. Partially

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

A. Yes
B. No

Survey on Telecom Stores

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


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

1. Outer Appearance (10)-

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2. Internal Environment (10)

3. Executive`s Behavior (10)-

4. Executive`s Knowledge (10)-

5. Problem solving approach (10) -

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

7. Communication Skills (10) -

8. Handset availability (10) -

9. Over-all impact (10) -

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