EXECUTIVE SUMMARY
This project was carried out at MTS, Pune. The Project title is MARKETING RESEARCH AND ANALYSIS OF CONSUMER BEHABIOUR FOR MTS (DATA th
th
CARD). The duration of the project was two months from 20 may 2010 to 20
July
2010. The primary objective of the study is to know consumer perception towards MTS broadband and brand awareness. The purpose of this report is to summarize the activities I undertook as part of my summer internship at MTS (Sistema Shyam Teleservices Ltd). I had to work in coordination with the company‗s sales team to promote the data-cards among consumers
and companies located in pune. In this report I have given a brief picture of the Indian telecom industry to demonstrate the potential for growth for MTS as a player in this field. I have also depicted the current standing of MTS on the horizon of Indian Telecom industry. I have also narrated our experience of this six weeks‘ worth of interaction with clients ranging from local IT vendors to B-schools to corporate bodies in Pune. I have briefly touched upon various issues that I faced while promoting the brand MTS. I have done a SWOT analysis of the brand . I, based on my survey, have come up with my own conclusions and suggestions that I feel might be useful to the company, in whatever little way, in promoting MTS data-cards.
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INTRODUCTION
Objective of study are:
What marketing strategies MTS is implementing to increase the market share?
To find competitors to MTS and the market shares of the competitors and what strategies MTS is implementing to beat its competitors.
To find out how MTS react to the technology changes in the communications sector.
To know consumer perception towards MTS broadband and brand awareness.
To identify the influencing factors of Customers.
To understand the customer satisfaction level.
To understand the requirements of individual & the corporate clients.
To develop better understanding of the various issues and challenges and working towards the opportunities.
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INTRODUCTION
Objective of study are:
What marketing strategies MTS is implementing to increase the market share?
To find competitors to MTS and the market shares of the competitors and what strategies MTS is implementing to beat its competitors.
To find out how MTS react to the technology changes in the communications sector.
To know consumer perception towards MTS broadband and brand awareness.
To identify the influencing factors of Customers.
To understand the customer satisfaction level.
To understand the requirements of individual & the corporate clients.
To develop better understanding of the various issues and challenges and working towards the opportunities.
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SCOPE OF THE STUDY With the dawning of the twenty-first century, India has witnessed a drastic change in the way business is conducted. Business travels across the globe have become commonplace, and this is gaining momentum with time. India too is on the move and wants to stay connected anytime, anywhere-whether on a train or bus, in a hotel or conference hall, within India or abroad. Meeting this need of business travellers are data cards and USB modems that have become the preferred solution, even before wireless mobile broadband is introduced in the country. In the age of IT where information is everything, everyone needs to be connected to the web 24X7.
According to the World Travel and Tourism Council, India has become one of the fastest growing countries in terms of the number of travels made within the country and between countries, by road and air. And here the communications industry found a profitable business opportunity.
Growing businesses in all segments, necessity to access emails and corporate applications during urgent business trips and the urge for some entertainment while on the move are some drivers increasing the demand for data card usage. Wired-line broadband connections are yet to penetrate the vast semi-urban and rural parts of the country where entrepreneurs, officials, students, etc have the need to surf the Internet for various purposes. Though the laptop penetration in these areas has not made a significant mark, desktop penetration is comparatively more.
With data cards offering convenient access to the Internet, a number of companies have started to tie up with service providers to avail bulk network connections for their employees on the go and allow them to utilize their time during business travels. Since data cards can be used with desktop also, it cuts down the office infrastructure costs as well. Growth of mobile telephony in India has created users with specific needs like mcommerce that require wireless Internet, driving the wireless data card growth. Once the concept of mobile wallet and its applications hit the market in India in the near future, the wireless data card segment is also expected to witness an exponential growth. All major service providers, including Reliance Communications, Bharti Airtel, Tata Indicom,
3
BSNL, and Vodafone and MTS have launched data cards to tap the vast opportunity lying ahead. The players are offering data cards and USB modems at competing prices and different tariff plans to woo customers.
Telecom sector in India Today the Indian telecommunications network with over 375 Million subscribers is second largest network in the world after China. India is also the fastest growing telecom market in the world with an addition of 9- 10 million monthly subscribers. The teledensity of the Country has increased from 18% in 2006 to 33% in December 2008, showing a stupendous annual growth of about 50%, one of the highest in any sector of the Indian Economy. The Department of Telecommunications has been able to provide state of the art world-class infrastructure at globally competitive tariffs and reduce the digital divide by extending connectivity to the unconnected areas. India has emerged as a major base for the telecom industry worldwide. Thus Indian telecom sector has come a long way in achieving its dream of providing affordable and effective communication facilities to Indian citizens. As a result common man today has access to this most needed facility. The reform measures coupled with the proactive policies of the Department of Telecommunications have resulted in an unprecedented growth of the telecom sector.
As the study is on consumer buying behaviour with the focus on perception of internet data card .so it is very significant considering the present global sinerio. As it is very important for the company to consider the buying behaviour of the consumer to compete in the market and then only they can serve best to the customer‘s .on this basis the
company can increase their sales. For this awareness company has to check buying behaviour of the customers. On regular basis. The survey helps to find out the loopholes is the area of service being offered by the company. Identifying those areas would help the company to minimize them and then they can go for increasing customers.
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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.
The government has approved the foreign direct investment 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.
Reliance Infratel, the tower subsidiary of Reliance Communications (R Com), will build 56,596 telecom towers by financial year 2010, increasing the total number of towers to 100,000.
BSNL, India's leading telecom company in revenue terms, will put in about US$ 1.16 billion in its Wi Max project.
Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its mobile subscriber base from 40 million at present to over 100 million.
Norway-based telecom operator Telenor has bought a further 7 per cent in Unitech Wireless for a little over US$ 430.70 million. Telenor now holds 67.25 per cent. Last year, it had bought a 60 per cent stake for US$ 1.23 billion.
*Source: All figures are taken from TRAI Report 5
Policy Initiatives The government has taken many proactive initiatives to facilitate the rapid growth of the Indian telecom industry.
100 per cent foreign direct investment (FDI) is permitted through the automatic route in telecom equipment manufacturing.
FDI ceiling in telecom services has been raised to 74 per cent. Introduction of a unified access licensing regime for telecom services on a panIndia basis.
Introduction of mobile number portability in a phased manner, starting in the fourth quarter of 2008.
The government is implementing a program of connecting 66,822 uncovered villages under the Bharat Nirman programme.
The Road Ahead The target for the 11th Plan period (2007-12) is 600 million phone connections with an investment of US$ 73 billion. Apart from the basic telephone service, there is an enormous potential for various value-added services.
According to the CII Ernst & Young report titled 'India 2012: Telecom growth continues', revenue from India's telecom services industry is projected to reach US$ 54 billion in 2012, as against US$ 31 billion in 2008.
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THEROTICAL BACKGROUND
In today‘s world of fierce competition. It is not possible for a company to survive by complacency
about its product and markets. It is not possible for a company to simply produce its goods but prime importance is focused to wards customer‘s satisfaction, satisfying customer needs, extending customer delight etc. Here is where the importance of the Marketing Management lies. Marketing Management is about winning in this new environment. It is about understanding what consumers want and supplying it more efficiently, more conveniently than competitors. It concerns itself with the whole combination of consumer satisfaction which leads to the communication of one brand in preference to another. Marketing also relates to the communication of fact /ideas in favour of one‘s own brand. All this is clubbed under the title of marketing Mix. Marketing Mix is the set of marketing variables that the firm uses to pursue its marketing objective in the target market.
The marketing Mix consists of 4P’s which are as product, price, physical distribution & promotion.
A product is anything that can be offered to a market to satisfy a need or want. It is the thing which helps in earning revenues for the company. It constitutes the physical product, brand name, label etc.
Price is the value of a product paid by the customer in monetary terms.
Physical distribution is the organization of a channel through which a product or service is made available for use or consumption.
Promotion activities include all the activities that the company undertakes to communication and promote its products to the target market. The promotion further includes the tools which helps a company to convey its message to customer. These tools include advertising, personal selling, publicity and sales promotion, among all these tools the most extensively used tools are advertising and sales promotion. Most of the companies are nowadays spending near about 40% of their total budget for promotion through sales promotion schemes. Sales promotion consists of a diverse collection of incentives tools, mostly short term, Designed to stimulate and/or grater purchase of particular /services by consumer or the trade. So, these sales promotion schemes are generally targeted to directly to the consumers and the retailers or the traders. These schemes can be in any form like free samples, coupons, cash refund offers, price offs, 7
premiums, prizes, free trials, point of purchase displays and demonstrations etc. After the
most important aspect in the field of Telecom industry is make a close eye on the market share and the market position. Having exact information regarding the current and previous market share provides a better platform for the company to make further strategies and plans regarding to the achievement of new targets. As we know that in telecom industry it is not possible to have exact information regarding to the market share, so any information regarding to the market position will help the top management to take further steps. Manitoba telecom services ltd have their main head office at Magarpatta city, Pune , Maharashtra .
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COMPANY PROFILE
INTRODUCTION TO THE COMPANY: MTS (Sistema Shyam Tele-Services Ltd.) — Sistema`s subsidiary in India, joint venture
of JSFC Sistema and Shyam Group of companies. Mobile Tele Systems (MTS) is the largest mobile phone operator in Russia and the CIS. MTS services over 91.33 million subscribers (as of July 31, 2008). MTS provides mobile communications in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia and Belarus, the territory with a total population of more than 230 million. MTS ranks as the 8th largest operator in the world by proportionate subscriptions at the end of 2007. MTS Sistema Shyam TeleServices Ltd. was founded in 1998 (original name – Shyam Telelink Ltd.) and started full-scale business in Rajasthan in 2000. Sistema is the
majority share holder in this joint venture with a 73.71% equity stake, along with the Shyam Group, holding a 23.79% stake and the remaining 2.5% being held by the public. The company obtained its pan-India license for provision of mobile services in March 2008 and at present has enough spectrum to provide mobile telephony services in 22 telecom-circles, covering India‗s 28 states and 7 union territories, with a population of 130 million. With the launch in Andhra Pradesh, SSTL will have expanded to 12 telecom circles. The other circles are Rajasthan, Bihar/Jharkhand, Kolkata, Rest of West Bengal & Sikkim, Chennai, Tamil Nadu, Kerala, Karnataka, Mumbai, Maharashtra, Haryana/Delhi & NCR. The high-speed mobile broadband service, MBlaze, was launched in November 2009 and has seen tremendous market acceptance with over 70,000 satisfied customers in a short span of time. In April 2010, MTS launched MTS TV for MBlaze customers. Sistema Shyam TeleServices (SSTL) is the fastest growing telecom company in the competitive Indian market, with over 4 million voice subscribers, with about a million in West Bengal alone, and 70,000 data customers. SSTL has tied up with Mobile TeleSystems OJSC, a JSFC Sistema company of Russia, to bring the globally acclaimed telecom brand – MTS - to India. MTS is the 8th largest telecom brand in the world. Millward Brown has recently voted MTS as the 72nd ranked Brand from among the Top 100 Brands in the world. The new head office of Sistema Shyam TeleServices is located 9
in Gurgaon – one of India‗s commercial capitals near Delhi. These new headquarters combine the functions of corporate office and technology centre, where top management and experts of different divisions are equipped with the most modern infrastructure to support their work. Since March 2009, Sistema Shyam TeleServices has been able to use the MTS brand for advertising and other communication in India as per the agreement signed between the company and MTS in December 2008. And since its launch, the MTS brand has been successful in every market it has stepped into.
HISTORY MTS was established in October 1993 by Moscow City Telephone Network (MGTS), TMobile Deutschland GmbH (T-Mobile), an affiliate of Deutsche Telekom AG, Siemens AG (Siemens) and several other shareholders. In late 1996, Sistema JSFC acquired a majority stake in MTS and has remained the primary owner ever since. MTS was the first company to launch GSM services in the Moscow region in 1994. In subsequent years, MTS has expanded rapidly in Russia largely through the acquisition of smaller independent players and became the leading national mobile operator. MTS initiated its international expansion in 2002 through the establishment of Mobile TeleSystems LLC, a joint venture with Be telecom, the national fixed line operator in Belarus. In 2003, MTS continued to expand in the CIS by acquiring the leading operator UMC in Ukraine, the biggest CIS market outside of Russia. MTS entered Central Asia in 2004 through the acquisition of the leading mobile phone operator in Uzbekistan, Uzdunrobita. In June 2005, the Company acquired Brash Communications Technologies, Inc., the number one operator in Turkmenistan. In September 2007, MTS continued its international expansion through the acquisition of the leading mobile operator in Armenia, K-Telecom.
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In December 2008, MTS extended its brand outside the CIS borders. MTS and Shyam Telelink Limited, JSFC Sistema's telecommunications subsidiary in India, announced the agreement to allow Shyam Telelink to use MTS brand in India. The decision to introduce the brand to India is reflective of the brand‘s success in the Company‘s markets of operation since its launch in May 2006. In April 2008, MTS brand was recognized as one of the BRANDZ™ Top 100 Most Powerful Brands, a ranking
published by the Financial Times and Millward Brown, a leading global market research and consulting firm. Today, Mobile TeleSystems is the largest mobile phone operator in Russia and the CIS. MTS is a multinational corporation of a new type, based in a high-growth emerging market and simultaneously entering other developing markets with a unified brand. Having been recognized internationally for corporate governance and transparency, MTS is not only a leading Russian blue-chip company, but a truly global organization.
ABOUT SSTL Sistema Shyam TeleServices Sistema Shyam TeleServices (SSTL) is the fastest growing telecom company in the competitive Indian market, with over 4 million voice subscribers and 70,000 data customers. SSTL has tied up with Mobile TeleSystems OJSC, a JSFC Sistema company of Russia, to bring the globally acclaimed telecom brand – ―MTS‖ - to India. MTS is the 8th largest telecom brand in the world. Millward Brown has recently voted MTS as the 72nd ranked Brand from among the Top 100 Brands in the world. SSTL is a joint venture company between Sistema {LSE-SSA} of Russia and Shyam Group of India. Sistema is the majority share holder in this joint venture with a 73.71% equity stake, along with the Shyam Group, holding a 23.79% stake and the remaining 2.5% being held by the public. SSTL has been allocated spectrum to provide mobile telephony services in 22 circles across the country. Presently SSTL offers voice & data services in Rajasthan, Bihar/Jharkhand, Kolkata, West Bengal & Sikkim, Chennai, Tamil Nadu, Kerala, Karnataka, Mumbai, Maharashtra/Goa, Haryana/Delhi & NCR. With the launch of the Andhra Pradesh circle, SSTL will be in 12 circles. MTS launched the high11
speed mobile broadband service, MBlaze, in November 2009 and has seen tremendous market acceptance with over 70,000 satisfied customers in a short span of time. In April 2010, MTS launched MTS TV for MBlaze customers.
Highlights
MTS, the mobile telecom service of SSTL, has seen its subscriber base cross 4 million in April 2010 and the numbers continue to grow exponentially.
MTS has completed a year of its operation in India in March 2010. It is the fastest growing telecom brand in the country.
The high-speed mobile broadband service, MBlaze, was launched in November 2009 and has seen tremendous market acceptance with over 70,000 satisfied customers in a short span of time. In April 2010, MTS launched MTS TV for MBlaze customers.
SSTL was the FIRST telecom company to launch mobile broadband internet services with speeds up to 3.1 Mbps in Jharkhand in April 2010.
MTS unveiled its green data centre in Chennai in April 2010.
In April 2010, Sistema JSFC has been recognized as the ‗Best Russian company of 2009‘ operating in India.
SSTL and MTS created history in March 2010 by enabling a first ever Live Webcast to facilitate an open dialogue for public communication with a visiting Head of Government to India. The visiting Chairman of the Government of the Russian Federation, Mr. Vladimir Putin, interacted from the Sistema office in Delhi with an audience that was spread across the metro cities of Mumbai, Kolkata and Bangalore. With the launch in Andhra Pradesh, SSTL will have expanded to 12 telecom circles. The other circles are Rajasthan, Bihar/Jharkhand, Kolkata, Rest of West Bengal & Sikkim, Chennai, Tamil Nadu, Kerala, Karnataka, Mumbai, Maharashtra, Haryana/ Delhi & NCR.
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The Vision The vision of the company is as follows
We will leverage our strengths to execute complex global – scale projects to facilitate leading – edge information and communication services affordable to all individual consumers and businesses in India . We will offer unparalleled value to create customer delight and enhance business productivity.
MTS will be the driving force for bringing New India into the fold of Opportunities. This drive for progress arises from our deep urge – to explore, to create, to achieve, to change, to improve.
The Mission
We believe the power of connectivity will provide New India with a new sense of identity and opportunity. We will provide this connectivity in a simple, effective and affordable manner.
The Ambition
We will encourage the use of connectivity to rise above social, cultural, Occupational and economic challenges, thus becoming the undisputed champion of those who have the courage to go against all odds.
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PRODUCTS AND SERVICES
Our Company is fully committed to provide globally acclaimed products and services to its customers at a very competitive tariff plans. The Company has launched its services in all new circles with competitive and attractive tariff plans for local as well as STD Calls, VAS etc. ranging from competitive special tariff vouchers, to variable talk time and validity offerings along with smart & lucrative handsets of various companies of repute with unique and advanced features. Our tag line - Badlo Life ka Plan – has been developed to tap into a new sense of pride and can do attitude emerging from new India. Honesty, Simplicity and True Value have been developed as corner stone‘s of our marketing approach in all aspects of offer development to respond to the suspicion in the consumer market. Our million minutes free launch promotion is the most innovative promotion ever in this market, creating a high engagement message to support the launch of the MTS brand and an immediate reason for purchase. At launch we offered the market a major innovation, a lifetime Special Tariff Voucher (STV). This product category has already been expanded from the one million minute launch promotion to a 30p/minute lifetime local calling STV. We have also launched 1, 2, FREE SMS product allowing customers to have free SMS after the first two per day, eclipsing all other SMS innovations in the market currently. Our terminals range is now expanded to include top brands such as Samsung and MTS branded USB modems for laptop/desktop users. The open market handset strategy will see phones being offered by Spice, Haier, Samsung, Fly and Huawei before the end of the year, which will reduce our Subscriber Acquisition Cost (SAC) and expand the segments we can target. We will also offer Blackberry type products for power users of email, again expanding our reach into new segments.
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Products offered by MTS: MTS has three products in wireless broadband segment 1. Mblaze premium
Plug & Play enabled
Speed up to 3.1 Mbps
Fastest uploads at a speed to up to 1.8 Mbps
Micro SD card slot for data storage
Stylish swivel modem for flexible usage
2. Mblaze standard
Plug & Play enabled
Speed up to 3.1 Mbps
Fastest uploads at a speed to up to 1.8 Mbps
3. M browse
Plug & Play enabled
Cutting edge CDMA 1X technology
4. MTS CDMA handset
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Corporate Information Board of Directors
Mr. Ron Sommer Mr. Sergey Cheremin Mr. Vsevolod Rozanov Mr. Rajiv Mehrotra Mr. Ajay Khanna Mr. Alok Tandon Mr. Suman Sehgal Mr. Mikhail Shamolin Mr. Madhukar
Chairman Dy.Chairman Whole Time Director Director Managing Director Managing Director Director Director Director
Company Secretary
Mr. Rashid J Malik Auditors
Internal Auditors
M/s S.R. Batliboi & Associates Chartered Accountants, Golf View, Corporate Tower B, Sector 42, Sector Road, Gurgaon (Haryana), India
M/s Mehra Goel & Co. Chartered Accountants, 505, Chiranjiv Towers, 43, Nehru Place, New Delhi-110019, India
Corporate Office
Bankers
MTS India Towers, Plot No.334 Udyog Vihar, Phase – lV, Gurgaon (Haryana), Website: www.mtsindia.in Tel: 91-124-4812500 Fax: 91-124-4812825
ICICI Bank Punjab National Bank India Bank of China Indian Bank ABN Amro Bank VTB Bank Yes Bank
Registrar And Transfer Agents
Registered Office
Indus Portfolio Pvt. Ltd. G-65, Bali Nagar India New Delhi-110015 E-mail:
[email protected] Tel: 91-11-25172115, 25422805, 25422801 Fax:91-11-25449863
B2-D, Shiv Marg Bani Park, Jaipur-302 016, Rajasthan, Tel: 0141-5100510
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3. Analysis 3.1 Porters’ Five Forces Model:
POWER OF SUPPLIERS
THREAT OF
COMPITITIVE POWER RIVALRY OF
ENTRANCE
BUYERS
AVAILABILITY OF SUBSTITUTES
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Threat of New Entrants (Moderate):
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. In addition, it is important to remember that solid operating skills and management experience is fairly scarce, making entry even more difficult. But still Threat of new entrants is always there for any company, MTS itself being a new entrant in the field of wireless broadband services.
Power of Suppliers (Low):
At first glance, it might look like telecom equipment suppliers have considerable bargaining power over telecom operators. Indeed, without high-tech broadband switching equipment, fibber-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. MTS will have a variety of suppliers to choose from, because most of the suppliers would be eying to get the contract to be the supplier of the company.
Power of Buyers (High): Lack of differentiation amongst the service providers has led to sort of commoditization of the product. MTS provides the same service as others provide, this lack of differentiation gives customer an edge to bargain with service providers, they can switch to any other provider any time they want. Fierce competition among the competitors also offers a great deal to bargain. As the switching cost is also very low, all these situations are creating problems in the growth of company.
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Availability of Substitutes (High): Products and services from non-traditional telecom industries pose serious substitution 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. The threat of the substitutes for MTS is very high in Indian market as the already existent players have a huge market share and better brand perception among the consumers, making it tough for MTS to win the trust of its customer and increase its market share.
Competitive Rivalry (High): Competition is "cut throat". The wave of industry deregulation together with the receptive capital markets 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. MTS will face a cut throat competition from its well established competitors – such as Reliance and Tata – that are already there in the CDMA market.
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SWOT ANALYSIS
Strengths of the company
Weaknesses of the company
in India
Opportunities for the company
Threats for the company n from other cellular‗s
advantage
Strengths of the company:
Experience in Russia:
MTS is having a huge experience in this field of business as they have been showing their presence since 1993 and a great customer experience in Russia and in other countries. Experience of MTS will help them to plan their strategy for Indian market accordingly.
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Pan India presence:
MTS is going to offer the most expansive roaming network. Letting you roam anywhere in India with its Pan-India presence, and trot across the globe with International Roaming spread in over the networks. The mobile services group provides CDMA mobile services across India in 11 telecom circles.
Low tariff plan:
MTS is coming with one of the cheapest tariffs in telecom sector by providing ½ paisa second call and in some region plan gets even cheaper ½ paisa 2 seconds. MTS launched a very different and attractive scheme i.e. 100000 minute free talk times with every new connection. Its tariff plans for internet data cards is also cheapest in India.
Innovative schemes:
MTS have launched a special bundle offer for data cards with HP and HCL laptops at subsidized prices. It also have launched a special offer, wherein a MTS mobile customer can make unlimited outgoing calls to any MTS mobile within the state for 999 days just by paying 999 rupees.
Parent company is financially sound:
Sistema is a Russian conglomerate. And it has a plenty of cash to invest further as backup.
Weaknesses of the company
New entrant in Indian Telecom market:
As MTS is a new entrant in the Indian telecom sector, not having a good customer base, it will face a cut throat competition from its competitors.
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Least Brand Recall in Customer’s mind in India:
As the company is a new entrant in the Indian cellular market, customer will have a perception of bad network and not a good customer service.
Less promotional activities:
ATL Advertisements are done very rarely, as compared to other players of the same industry like, Reliance, Tata and Vodafone.
Opportunities for the company
Latest technology and low cost advantage:
MTS can enjoy its latest technology and low cost advantage. The number of cities, towns and villages it has covered already works to its advantage as putting more base stations for cellular coverage in these areas comes with negligible marginal cost. Besides such cost advantages, it has also other cost advantages for the latest cellular technology.
Huge market:
The cellular telephony market is presently expanding at a phenomenal rate every year and there is still vast scope for MTS to enter & expand in this market. Besides there is a vast rural segment where the cellular services have not made much headway and many customers are looking towards MTS for providing the service to them. With its presence even in the remotest areas, MTS can gain a big market share in this segment.
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Other opportunities:
India is the second-largest telecommunications market in terms of sheer numbers of potential subscribers, and one of the fastest growing in the world. MTS can cover all the 22 telecom circles of India through its adequate strategies and investment in network coverage.
Threats for the company
Competition from other cellular’s:
It is time for MTS to expand its cellular services. Fierce competition is already in place with the markets ever abuzz with several tariff reductions an announcement of attractive packages, trying to grab most of the mind share of the king – the consumer,
whose benefits are increasing with passing of everyday. If MTS will not be innovative and agile, its cellular service will be a flop. It needs to be proactive with attractive packaging, pricing and marketing policies lest its presence in the market be treated with disdain by the private cellular companies. The launch of WLL services by Reliance communication has aggravated the situation.
Less product awareness in the market:
To make its presence felt in the market, MTS should launch different promotion and advertisement activities.
Brand perception:
Building a strong brand image will help the company grapple with competition from well known names like Reliance and Tata.
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Approach to competition
MTS is providing A cheaper Tariff plan to attract huge customers in the market
and to increase its Market share. (see table-1)
PRIPAID PLAN COMPARISSION MTS
FREE USAGE 250MB
VALIDITY
PRICE
TATA photon+ PRICE 200
RELIANCE
DIFFERENCE
PRICE
2
250
DIFFERENCE
30
198
52
350
30
248
750 1 GB
30 30
498 598
500 2(650MB 700 102
2GB
30
698
850
152
3GB
30
798
1000
202
935
137
6GB
30
898
1200
302
1210
312
10GB
30
1050
1379
329
15GB
30
1500
1925
425
30GB
30
3000
50GB
30
5000
10GB NIG
30
595
3GB
90
1794
9GB
90
2394
18GB
90
2694
30GB
90
3150
45GB
90
4500
6GB
180
3588
18GB
180
4788
36GB
180
5388
60GB
180
6300
500 2(700MB) 715 117
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POSTPAID PLAN COMPARISON MTS Bundled Free Usage
TATA Photon+
Reliance
Monthly Rental
Monthly Rental
Difference
Monthly Rental
Difference
1 GB
598
650
52
650
52
2 GB
698
750
52
750
52
3 GB
798
850
52
850
52
6 GB
898
950
52(5GB)
1099
201(5GB)
10 GB
1050
1100
50
1250
200
15 GB
1500
1500
0
1750
250
10 GB
499
499
0
Extra Usage Charge
40p/MB
3 GB Night
99
751
751
10 GB Night
199
901
1051
10 GB Night
199
901
1051
50p/MB
50p/MB
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RESEARCH METHODOLOGY
Definition of Research
The word research is derived from the Latin word meaning to know. It is a systematic and a replicable process, which identifies and defines problems, within specified boundaries. It employs well-designed method to collect the data and analyses the results. It disseminates the findings to contribute to generalize able knowledge. The characteristics of research presented below will be examined in greater details later are:
Systematic problem solving which identifies variables and tests relationships between them,
Collecting, organizing and evaluating data.
Logical, so procedures can be duplicated or understood by others
Empirical, so decisions are based on data collected
Reductive, so it investigates a small sample which can be generalized to a larger population
Replicable, so others may test the findings by repeating it.
Discovering new facts or verify and test old facts.
Developing new scientific tools, concepts and theories, this would facilitate to take decision.
For the proper analysis of data simple statistical techniques such as percentage were use. It helps in making more generalization from the data available. The data which was collected from a sample of population was assumed to be representing entire population was interest. Demographic factors like age, income and educational background was used for the classification purpose.
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Marketing Research Process
Marketing Research Process can be carried out through the following steps: Define the problem and research objectives
Develop the research plan
Collect the information
Analysis and interpretations
Present the findings
The role of Marketing research
The task of marketing is to access the information needs and management with relevant, accurate, reliable, valid and current information. This helps in decisionmaking process.
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METHOD OF DATA COLLECTION: There are many methods of data collection in a survey. These are basically divided in two main types of methods. These are: 1. Primary data collection. 2. Secondary data Collection. Primary data collection
It is the method of data collection in which the marketers collect the data very first time or we can say that the collected data is fresh or first-hand data. We can collect primary data by: -
Directly by the customer.
By observation method.
By telephonic Interview method.
By e-mailing the queries & etc.
Secondary data collection
It is a method of data collection in which the collected data is not fresh data, i.e. data is collected from the report of any research, from internet or from any government offices etc. These types of data collection methods are basically used when the sample size is very large. Sample size
For carrying out any research or study on any subject it is very difficult to cover even 10% of the total population. Therefore the sample size has to be decided for a meaningful conclusion. For designing the sample size, it was thought proper to cover a very small percentage of population in various age groups.
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Sampling plan:
Method of Sampling: Non-probability sampling- convenience and judgment sampling.
Sample Size: 100 samples
The method used for sample technique was non probability convenience sampling method. This method is used because it is known previously as to whether a particular person will be asked to fill the questionnaire. Convenient sampling is used because only those people will be asked to fill the questionnaires who were easily accessible and available to the researcher.
TYPES & TECHNIQUES The study conducted is a conclusive descriptive statistical study; the researcher comes to the decision which is precise and rational. The study is conclusive because after doing the study the researcher comes to a conclusion regarding the position of the brand in the minds of respondents of different firms groups. The study is statistical because throughout the study all the similar samples are selected and group together. All the similar responses are taken together as one and their percentages are calculated. Thus, this, conclusive descriptive statistical study is the best study for this purpose as it provides the necessary information which is utilize to arrive at a concrete decision.
TOOLS USED Basically for this project, there are following instruments used:
Survey questionnaire
The MTS information brochure
Direct approach to customers
Telephones & Internet.
Survey questionnaire is a very important instrument for any researcher to collect the requisite information. The questionnaire helps him to get a brief knowledge about a 29
particular subject. With the help of questionnaire, further analysis and able to make a decision and categorize each factor present in the questionnaire in a proper manner. MTS wireless broadband survey questionnaire where each questions carry equal weight age that helped me to take my decision in the end. Apart from the questionnaire, another important tools which was MTS Information Brochure. It involves all the benefits of MTS and its wireless connection that was sufficient for a customer to get a brief idea about sample form of data collection by direct approach to the customers.
Scope of the project:With the dawning of the twenty-first century, India has witnessed a drastic change in the way business is conducted. Business travels across the globe have become commonplace, and this is gaining momentum with time. India too is on the move and wants to stay connected anytime, anywhere-whether on a train or bus, in a hotel or conference hall, within India or abroad. Meeting this need of business travellers are data cards and USB modems that have become the preferred solution, even before wireless mobile broadband is introduced in the country. In the age of IT where information is everything, everyone needs to be connected to the web 24X7.
According to the World Travel and Tourism Council, India has become one of the fastest growing countries in terms of the number of travels made within the country and between countries, by road and air. And here the communications industry found a profitable business opportunity.
Growing businesses in all segments, necessity to access emails and corporate applications during urgent business trips and the urge for some entertainment while on the move are some drivers increasing the demand for data card usage. Wired-line broadband connections are yet to penetrate the vast semi-urban and rural parts of the country where entrepreneurs, officials, students, etc have the need to surf the Internet for various purposes. Though the laptop penetration in these areas has not made a significant mark, desktop penetration is comparatively more.
With data cards offering convenient access to the Internet, a number of companies have started to tie up with service providers to avail bulk network connections for their
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employees on the go and allow them to utilize their time during business travels. Since data cards can be used with desktop also, it cuts down the office infrastructure costs as well. Growth of mobile telephony in India has created users with specific needs like mcommerce that require wireless Internet, driving the wireless data card growth. Once the concept of mobile wallet and its applications hit the market in India in the near future, the wireless data card segment is also expected to witness an exponential growth. All major service providers, including Reliance Communications, Bharti Airtel, Tata Indicom, BSNL, and Vodafone and MTS have launched data cards to tap the vast opportunity lying ahead. The players are offering data cards and USB modems at competing prices and different tariff plans to woo customers.
STRATEGY
We continue to take action to become a stronger, more focused and competitive company. Our mission – our focus – is to deliver true value as seen through the eyes our customers. In so doing, we will create shareholder value by investing in our growth products, driving innovation in product and service development, and continuing to aggressively align our cost structure. We are guided by three principles:
Focused
Responsive
Lean
Focused Making clear choices on where we will complete, focusing on customer segments where we have the scale, resources, service portfolio and operating efficiencies to be a profitable market leader. 31
Responsive
Taking a fast and flexible approach in responding to customer requirements, executing on our marketing and operational strategies, and adapting profitably to competitive pressures
Lean
Aggressively managing our cost structure to remain competitive, directing resources towards the market where we choose to complete while deriving maximum value from all our capital investments.
CORPORATE STRATEGY MTS aims to be the leading communication operator in India, providing its customers with mobile and high internet access at home and on the move. For this company is trying to move beyond the mobile access.
The development of MTS beyond mobile access is part of our strategic initiative 3i‘S. Company‗s direction is basically based on three main principles:
Integration
Internet
Innovation
Integration
In integration company is basically trying to develop new pipeline‗s and customer touch
points. Company aims to provide comprehensive integrated service portfolio for all of their customers. Communication needs, through both fixed line and wireless access. The networks and platforms company is developing will create a seamless and unsurpassed – user experience. 32
Internet
For internet facilities company is trying to offer universal connectivity to its customers because customer increasingly expects faster and broader connectivity. Company is trying to create smarter pipelines so the customers can realize full benefits of today‗s technology and to compete with other brands.
Innovation
Differentiating MTS from its competitors by offering a unique mix of products and services, MTS will offer exclusive devices, distinct packages and services.
PROJECT DESCRIPTION: Overview
As part of the market share analysis exercise of MTS, I was assigned to interact with prospective clients, document their requirements and feedback and suggest ways to increase the customer base of MTS data-cards. The activities our team undertook and our findings are delineated here under: Initially, I was intimated of the MTS Data-cards and the schemes. I used to go to the magalvar peth office to get a rough idea of the modus operandi of the company. I also went to a few B-schools and a few small and medium size enterprises as part of my task to create awareness of the MTS products and tap new clients into buying MTS data-cards. I was assigned the project of sales that entailed to forge tie-ups with corporate mainly nationalized company for corporate connections and also to the individual customers I also have found the prospective customer by going to a specific area and conducting need analysis.
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For the next couple of weeks, I compiled a sector-wise database of various companies mainly nationalized companies. I also went to various companies and took their telephone numbers and contact details. I thus compiled a database of those companies. I called those companies and tried to fix up appointments with people concerned. I met with the persons concerned and intimated them of our company and our corporate offers, demonstrated the product to the interested clients, and took their feedback and ascertained their requirements. After taking their feedback and requirements, I offered them customized deals to attract them to our product. I again called them and revisited them in course of follow up. I also mailed the proposals to the concerned companies who asked me to do so. Apart from that I also went to retailers and distributors with the customized offers and schemes and convinced a few to promote our data-cards. I also met with the retailers and distributers that were already keeping our product and took their feedback and tried to resolve the issues, if any, they had with our product and services. MTS had entered into deals with HCL and HP, wherein the data-card worth Rs 2299 could be bought for Rs 1599 and Rs 999 respectively. We informed the retailers of this scheme and introduced them to the company‗s star feet-on-streets, who would interact with the retailers and deal
with them further.
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DATA ANALYSIS & INTERPRETATION
Data analysis and the whole questioner was filled on the basis of the survey and sales record taken by us by going to various areas around Pune. They are :
Deccan FC road Swargate Viman Nagar Chandan Nagar bypass road Wagoli Hadapsar Paud road Baner Bibewewadi Somwar peth Raviwar peth Gourpari gaun KP Kalyani nagar Piple gaurav Piple saudagar Kadki Vadgoan sheri Market yard Karadi Vishant wadi
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Q1. Q1. Do you have a laptop or desktop?
Number of respondents
Percentage of respondents
60
40%
90
60%
150
100%
laptop
desktop Total
Laptop and desktop users
40%
60%
laptop desktop
Interpretation From the above graph it was found that majority (60%) of the respondents are desktop users.
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Q2. Do you use internet?
YES
100
NO
50
Internet User NO 33%
YES 67%
Interpretation
From the above graph it was found that majority (67%) of the population are internet users
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Q3. What is your age?
Age analysis of the customers.
S.No.
Age of customers(year)
Percentage (%)
1
less than 18
7
2
18-23
33
3
23-28
48
4
28-45
9
5
greater than 45
3
48% 50% less than 18
40%
33%
18-23
30% 23-28
percenatge 20% 10%
28-45
9%
7%
3%
greater than 45
0%
categories
Interpretation: As in graph there is result that maximum number of customers are existing in that category which has age limit 23-28 years means there is huge potential to use broad band internet in Pune.
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Q4. What is your gender?
Gender analysis of respondents.
NO. OF
PERCENTAGE OF
GENDER
RESPONDENTS
RESPONDENTS
MALE
77
77%
FEMALE
23
23%
TOTAL
100
100%
PERCENTAGE OF RESPONDENTS 77% 80% 70% 60% 50% 40%
23%
30% 20% 10% 0% 1
2
Interpretation: From the above data, it can be inferred that the gender profile of the respondents includes 77 males i.e., 77% of the respondents and 33 females i.e., the remaining 33% of the respondents.
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Q.5.How much you earn per month?
Income Level per month Tabulation: Income level
No of respondent
Percentage (%)
Up to 10000
20
20%
10000-15000
42
42%
15000-20000
18
18%
20000-25000
15
15%
More than 25000
05
5%
TOTAL
100
100%
Percentage (%) 42%
45% 40% 35% 30% 25% 20%
20%
18%
15%
15% 10%
5%
5% 0%
Interpretation From the above graph it was found that, most of the respondents .i.e.(42%) belong from the income group of Rs10,000-15,000,and (20%) of the respondents are earning less than or up to Rs 10,000.
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Q6. What is your occupation?
Job analysis of the customers
Occupation of customers
Percentage (%)
Professionals
30%
Student
45%
Businessman
20%
Others
5%
TOTAL
100%
Percentage (%) 5% 20%
30%
Professionals Student Businessman Others
45%
Interpretation: From the survey there is huge capacity to use internet by student and after it, professionals are majority in operating broad band connection in Pune.
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Q7.Where do you access internet service?
Place
Response
Home
44
Office
16
Cyber cafe
21
College
19
TOTAL
100
Response 19 44 Home Office
21
Cyber cafe 16
College
Interpretation: From the above data, it can be inferred that out of 100 customer, 44 customer access internet services from their home, which is huge percentage and rest i.e. 56 customer from office, cybercafé, and colleges.
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Q8. What type of internet connection do you use?
Types of internet connections Cable modem
Number of respondents
13
Percentage of respondents 13%
Dial-up
35
35%
UBS modem
30
30%
Broadband
22
22%
Total
100
100%
Percentage of respondents Cable modem 13% Broadband 22%
Usb modem 30%
Dial-up 35%
Interpretation: The above graph shows that the dial-up and usb modem internet connection users are 35% and 30% respectively.
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Q9. Which service provider are you aware of?
Service Provider
Responses
Tata Photon
48
Reliance
32
Bsnl
13
Mts
7
Responses 7 13 48
Tata Photon Reliance
32
Bsnl Mts
Interpretation The above graph shows that people are more aware of Tata photon .i.e. (48%) and only (7%) are aware of MTS.
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Q10. Which service provider are you currently using?
Service Provider
Responses
Tata Photon
46
Reliance
33
Bsnl
16
Mts
5
TOTAL
100
Responses 46
50 45 40
33
35 30 25 16
20 15
5
10 5 0 Tata Photon
Reliance
Bsnl
Mts
Interpretation Above graph shows that Tata photon has maximum users .i.e. (46%) . followed by reliance .i.e.(33%).
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Q11. Rate the following service provider on the basis of the following
criteria (ON 0 TO 10)?
Speed Network Plans Availability Schemes Services Reliance
6
7
6
9
7
7
Tata Photon MTS
7
7
7
9
8
8
8
5
8
9
9
8
BSNL
6
8
6
9
7
6
9 8 7 Speed
6
Network
5
Plans 4
Availability
3
Schemes
2
Services
1 0 Reliance
Tata Photon
MTS
BSNL
Interpretation
With all the criteria Reliance and BSNL are average performers in the view of customer. Tata photon is the best performer in market. MTS as newly launched has average network, but in rest criteria MTS is ranked above by the customer.
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Q12. What attracts you most towards a data service provider? (1 being the
most and 6 being least) RESPONSES Tariff
3
Schemes
5
Network
1
Availability
6
Service
4
Speed
2
attract toward service provider 7 6
6
5
e l t i 4 T s i 3 x A
5 4 3
2 1
2 1
RESPONSES
0
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Q13. Compare the price of MTS on the following scale?
Scale
Respondents
Percentage (%)
Very Good
26
26%
Good
68
68%
Dissatisfied
06
6%
Very Dissatisfied
00
0%
TOTAL
100
100%
Percentage (%) 68% 70% 60% 50% 40%
26%
30% 20%
6%
10%
0%
0% Very Good
Good
Dissatisfied
Very Dissatisfied
Interpretation: The above bar graph revealed that 68% of the customers had told price is good and 26% told very good but 6% of customers are dissatisfied so we can tell that most of the customers are satisfied with the price.
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Q14. Compare the speed of MTS Mblaze on the following scale?
Scale
Respondents
Percentage (%)
Very Satisfied
40
40%
Satisfied
55
55%
Dissatisfied
05
5%
Very Dissatisfied
00
0%
TOTAL
100
100%
Percentage (%) 0% 5% 40% Very Satisfied Satisfied 55%
Dissatisfied Very Dissatisfied
Interpretation: From the above chart it is observed that nearly 55% of customers are satisfied with the speed and 40% of them are very satisfied, in MTS speed is the main feature which attracted the customers very well. There are no issues with the speed of the product.
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Q15. Rate the after sale services of the following service provider on scale
of 1to 4? (1 being the best and 4 being worst)
Service Provider
Rank
Tata
1
Reliance
4
MTS
2
BSNL
3
Rank 4 4 3
3.5 3 2
2.5
Rank
2 1.5
1
1 0.5 0 Tata
Reliance
MTS
BSNL
Interpretation: From the above graph, it can be revealed that Tata photon has the highest level of customer satisfaction, and on another hand MTS & BSNL has moderate level of dissatisfaction among customer in after sales services.
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Q16. From where you prefer buying MTS MBLAZE ?
(i) Exhibitions (ii ) Co.shoppee (iii ) Showroom
Preferences
No. of Customers
Percentage (%)
Exhibition
17
17
Co.Shoppee
36
36
Showroom
47
47
Total
100
100
Percentage (%)
17% Exhibition 47%
Co.Shoppee Showroom 36%
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FINDINGS
Potential customers are professionals, business women and students.
Most of the respondents i.e. (42%) belongs from the income group of Rs 1000015000, and 20% of the respondents are earning less than Rs 10000.
Most of the customers are almost satisfied with the services provided by the services center of MTS.
MTS Mblaze is giving speed up to 3.1mbps to which the customers are attracted.
There are problems like where net connection is disconnecting continuously and some customers are facing billing problems due to misunderstanding the tariff plans.
Majority i.e. . (60%) of the respondents are desktop user.
Tata photon has maximum user‘s i.e. (46%), followed by reliance i.e. (33%).
From the survey it was found that (48%) of the respondents are at the age group of 23-28 years.
People are more aware of Tata photon i.e. (48%) and only (7%) are aware of MTS.
Most of the customers are concerned with download rate of the product.
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SUGGESTION
MTS can provide demo data-cards for trial to prospective clients.
MTS should do its product promotion on a large scale to make people aware of MTS.
Company should try and provide better after sales and value added services than its peers to attract new clients and retain the existing.
As the company has poor costumer base in India, but it is a successful brand in Russia. They should highlight this fact as brand building exercise for MTS.
Focus more on companies which requires their employees to move in course of their jobs viz. consultancy firms, software development companies etc.
Railway stations and airports can be used for setting up kiosks for compiling a database of prospective customers.
Company should promote their promotion offers, because it was found that very few customers are aware of the promotional offers by the company.
Company should increase its network coverage area in different parts of pune.
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CONCLUSION
Based on study of MTS Mblaze & carrying SWOT analysis conclusion can be drawn that the target group for this product would certainly be professionals who are in continuous need of quick information. The professionals are willing to pay if their requirements are satisfied. More detailed information should be provided to them as Lack of information is what came into sight.
Most of the companies were already using data-cards of other companies. They couldn‗t switch as it was against their companies ‗contract with those ISPs which
were binding on them all over India.
A few companies liked the product but were reluctant to switch over to it as they were satisfied with their present ISP. They may consider our brand in case or future need.
A few companies had no use for wireless data-cards as leased lines suffice for them.
Companies have reservations against MTS as it is a new brand and has low visibility in the market.
The product is not well aware and it is not on top of mind of young generation so continuous promotional campaign, loyalty program should be conducted so that positive atmosphere is created in their minds.
Companies were reluctant to agree to any lock-in period — even if for a few months — wherein they were required to recharge with a fixed amount if they chose to take our data-cards free of cost
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BIBLIOGRAPHY
Books
Marketing Management - Phillip Kotler Marketing Research - Toll & Hawkins
Magazines
Business Today Advertising & Management
Newspapers
Economic Times Hindustan Times
Websites www.google.com www.mtsindia.co.in www.wikipedia.com www.broadbandindia.com
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QUESTIONNAIRE Q1. Do you have a laptop or desktop? a. Laptops b. Desktop
Q2. Do you use Internet? a. Yes b. No
Q3. What is your age? a. less than 18
b. 18-23
c. 23-28
d. 28-45
Q4. What is your gender? a. Male b. Female
Q5. How much you earn per month? a. Up to 10000
b. 10000-15000
c. 15000-20000
d. 20000-25000
e. More than 25000
Q6. What is your occupation? a. Professionals
b. Student
c. Businessman
d. Others
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Q7. Where do you access internet services? a. Home
b. Office
c. Cyber café
d. College
Q8. What type of internet connection do you use? a. Cable modem
b. Dial up
c. USB modem
d. Broadband
Q9. Which service provider are you aware of? a. Tata Photon
b. Reliance
c. BSNL
d. MTS
Q10. Which service provider are you currently using? a. Tata Photon
b. Reliance
c. BSNL
d. MTS
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Q11. Rate the following service provider on the basis of the following criteria (ON 0 TO 10)?
Speed
Network
Plans
Availability Schemes
Services
Reliance Tata Photon MTS BSNL
Q12. What attracts you most towards a data card services provider? (1 being the most & 6 being least)
RESPONSES Tariff Schemes Network Availability Service Speed
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