A STUDY ON MARKETING STRATEGIES OF TATA DOCOMO TELECOM SECTOR IN INDIA: More 150 million (Approx) telephones network is one of the largest communication networks in the world, which continues to grow at a blistering pace. The rapid growth in the telecom sector can be attributed to the various pro-active and positive policy measures taken by the government as well as the dynamic and entrepreneurial spirit of the various telecom service providers both in private and public sector. The telecom sector has shown impressive growth during the past decade. Today more two striking features of this growth VIZ. Increasing preference for mobile phones and higher contribution of private sector in the 1 | Page
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A STUDY ON MARKETING STRATEGIES OF TATA DOCOMO
TELECOM SECTOR IN INDIA:
More 150 million (Approx) telephones network is one of the largest communication networks in
the world, which continues to grow at a blistering pace. The rapid growth in the telecom sector
can be attributed to the various pro-active and positive policy measures taken by the government
as well as the dynamic and entrepreneurial spirit of the various telecom service providers both in
private and public sector. The telecom sector has shown impressive growth during the past
decade. Today more two striking features of this growth VIZ. Increasing preference for mobile
phones and higher contribution of private sector in the incremental growth have pre-
dominated the telecom sector. The share of mobile phones (including WLL mobiles.) has
overtaken the shares of landlines with 93% (Approx) in the total number of phones. The private
sector contribution also increasing rapidly. Currently more than 80 lakhs phones are being used
added each month and it is targeted that by the total number of phones may reach a level of 700
millions taking the tele-density to more than 60% which is currently at 55% (Approx).
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"The implementation of the National Telecom Policy of 2012 is a positive step. But its
immediate impact will be limited," said Mahesh Uppal, director of a telecom consultancy firm,
Com First. "The current controversies of 2G (second generation) and 3G (third generation)
telecom services have less to do with policy and more with the process. Those disputes cannot be
resolved by changes in policy," Uppal told IANS h wants to raise its stake beyond 64.38 per
cent. Investment is a priority for the sector but not foreign equity, per se," said Uppal.
Experts said telecom players were looking for market capitalization and consolidation."The
operators have started to focus on subscriber quality and have done away with the lucrative
dealer commissions and promotional minutes. After 2008, for the first time, India has witnessed
a surge in voice tariff," said Jaideep Ghosh, partner witn KPMG.
NETWORK EXPANSION:
The total number of telephone subscribers has reached 563.24 million at the end of February as
compared to 281.62 million. The overall tele-density has increase to 71.26% in February.
WIRELESS SERVICE:
The wireless segment saw a surge of 17.4 million subscribers last month compared to 8.20
million in December 2011. This pushed the total wireless subscriber’s base to 680.8 million by
January.
WIRELINE SUBSCRIBERS:
The wire line segment subscriber base stood at 99.73 million with a decrease of 0.16 million at
the end of January.
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TELEDENSITY:
The gross subscriber’s base reached 600.83 million at the end of March. The tele- density is
24.63% at the end of January as compared to 18.31% at the end of March registering an increase
0f 6%.
BROADBAND
Broadband subscription reached 15.13 million in May 2013 from 15.09 million in April 2013.
Provide affordable and reliable broadband-on-demand by the year 2015.
To Provide fiber connectivity to 2,50,000 Gram panchayats thru BBNL
Requirement of massive infrastructure in broadband.
INCREASING ROLE OF PRIVATE SECTOR:
The private sector has played a significant role in the growth of telecom sector. The share of
private sector has rise 85% in December from 64.14% in November.
TARIFF REBALANCING MEASURES:
There has been a dramatic fall inconsiderably in recent months especially for cellular services.
The long distance domestic as well as international charges have also fallen considerably.
TELECOM REGULATORY AUTHORITY OF INDIA (TRAI):
TRAI was established under the Telecom Regulatory Authority Of India Act, 1997 enacted on
March 28, 1997. The goals and objective of TRAI are focused towards providing a regulatory
framework that facilitates achievement of the objective of New Technology Policy (NTP) 1999.
TRAI has endeavoured to encourage greater corporation in the telecom sector together with
better quality and affordable prices.
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About TATA DOCOMO
Tata Docomo is Tata Teleservices Limited's telecom service on the GSM platform-arising out of
the Tata Group's strategic alliance with Japanese telecom major NTT Docomo in November
2008. Tata Teleservices has received a license to operate GSM telecom services in 19 of India's
22 telecom Circles-and has also been allotted spectrum in 18 telecom circles. Of these, it has
already rolled out services in all the 18 Circles that it received spectrum in from the Government
of India-Tamil Nadu, Kerala, Orissa, Karnataka, Andhra Pradesh, Maharashtra, Mumbai,
Madhya Pradesh-Chhattisgarh, Haryana-Punjab, Kolkata, Rest of West Bengal, Jharkhand,
Bihar, UP (East), UP (West), Gujarat, Himachal Pradesh and Rajasthan.
Tata Docomo has also become the first Indian private operator to launch 3G services in India,
with its recent launch in all the nine telecom Circles where it bagged the 3G license. In
association with its partner NTT Docomo, the Company finds itself suitably positioned to
leverage this first-mover advantage. With 3G, Tata Docomo stands to redefine the very face of
telecoms in India. Tokyo-based NTT Docomo is one of the world's leading mobile operators-in
Japan, the company is the clear market leader, used by nearly 55 per cent of the country's mobile
phone users.
NTT Docomo has played a major role in the evolution of mobile telecommunications through its
development of cutting-edge technologies and services. Over the years, technologists at Docomo
have defined industry benchmarks like 3G technology, as also products and services like i-Mode,
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e-wallet and a plethora of lifestyle-enhancing applications. Last year itself, while most of the rest
of the industry was only beginning to talk of 4G technology and its possible applications,
Docomo had already concluded conducting 4G trials in physical geographies, not just inside
laboratories! Docomo is a global leader in the VAS space, both in terms of services and handset
designs, particularly integrating services at the platform stage. The Tata Group-NTT Docomo
partnership will see offerings such as these being introduced in the Indian market through the
Tata Docomo brand. Tata Docomo has also set up a ‘Business and Technology Coordination
Council', comprising of senior personnel from both companies. The council is responsible for the
identification of key areas where the two companies will work together. Docomo, the world's
leading mobile operator, will work closely with the Tata Teleservices Limited management and
provide know-how to help the company develop its GSM business.
On the CDMA platform, despite being the latest entrant, Tata Indicom has already established its
presence and is the fastest-growing pan-India operator. Incorporated in 1996, Tata Teleservices
is the pioneer of the CDMA 1x technology platform in India. Today, Tata Teleservices Ltd,
along with Tata Teleservices (Maharashtra) Ltd, serves over 84 million customers in more than
450,000 towns and villages across the country, with a bouquet of telephony services
encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wireline
Services.
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A STUDY ON MARKETING STRATEGIES OF TATA DOCOMO
SCOPE OF STUDY
1. To identify the difference type of market performance of TATA DOCOMO.
2. To study the market of Docomo of marketing strategies, manufacturing process, technology
adopted, Production Company on big scale telecommunication sector.
3. To compare various parameters policy, export scenario, collaboration, advertising, future
prospect for the Tata Docomo and government policies.
4.To study the level of customer satisfaction in Docomo.
5.To study customer buying behaviour and factors which influence the purchase decision
process.
6.To study consumer preferences.
7.To study the consumer trend in telecommunication sector.
8.To study competitive marketing strategies adopted by Tata Docomo.
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OBJECTIVE OF STUDY
1.To study the schemes and services provided Tata Docomo
2.To study the Tarrif charged by Tata Docomo
3.To study the unique features and services provided by Tata Docomo
4.To study SWOT analysis of Tata Docomo
5.To know the impact of purchasing behavior of the buyer
6.To study the customer satisfaction level regarding the services proided by Tata
Docomo
7.To know the customer preference for specific services
8.To identify the cost reduction factor
METHODOLOGY
It means the tools or methods used for collecting the data from the field . The data is
collected in two ways
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PRIMARY DATA : it is the first hand data collected directly from the field
DIRECT INTERVIEWS
- The study will be carried out in Kasaragod
- primary data will be collected through questionnaire
- The authoritative person and administrative staff will be interviewed directly to gather required
information
SECONDARY DATA :The secondary data which is collected initially for some other purpose
- Extensive library research
- various websites
- books magazines and newspapers
SAMPLING DESIGN : which Involves sample unit , sample size, sample technique The
study titled Market Analysis on TATA DOCOMO was carried out in Kasaragod district of Kerala
state. to know the Market analysis of Tata Docomo.
Kasaragod has been selected as the study area as it is one of the good market for Telecom. Over the
years the district has seen an increase in the level of income and standard of living of the people..
All these factors have led to increase in Telecom sector.
SAMPLE UNIT : The targets who will be interviewed is the consumers and employees of
the company and the manager
SAMPLE SIZE: the number of interviewers may differ on the number of customers and
the no of respondents are to be 50.
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SAMPLE TECHNIQUE :
- Forming questionnaire
- Random sampling techniques
- Direct questions to the customer
Design of the Questionnaire:
The questionnaire was drafted using open ended questions, close ended and multiple choice
questions. Care was taken to see that as far as possible. No ambiguous questions were asked.
The questions were simple and easy to understand. Lengthy questions were avoided.
SOCIAL RELEVANCE
The study of Market Analysis on Tata Docomo has a great social relevance and contribution to
the society. The market is providing tata telecom to the consumers, the consumers can make the
choice of their own which is attractive and useful to them. It recommends appropriate strategies
to the marketers for the success of their brand. This study will helps the people to get a better
knowledge about the mobile sim cards with different offers which is available in Indian market.
LIMITATION
- In the view of the limited time available for the study.
-This study was conducted only in kasaragod. This may not give a generalized conclusion
-The respondents were less interested in answering the questionnaire. As they felt that it
was an interruption to their regular work.
-The conclusions are based on the opinions expressed by the customers. Hence they
cannot be assured to unbiased or true representation of reality
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CHAPTER SCHEME
CHAPTER 1- INTRODUCTION : To give brief of the industry and the research topic ,
conceptual framework, statement of the problem , scope of the study , objectives of the
study , research methodology , sample design limitations of the study , social relevance and
chapter scheme.
CHAPTER 2- COMPANY PROFILE : to give brief history of the company , locations ,
organization structure , operation and unique features of the unit
CHAPTER 3- REVIEW OF THE LITERATURE: to review the articles investigates for the
purpose of the study.
CHAPTER 4 - THEOTRICALPERSPECTIVES OF THE STUDY : before the start of the
project all the surveys as to be done , there should be a hypothesis
CHAPTER 5 - ANALYSIS AND INTERPRETATIONS: examinations all the charts and
statistical analysis used for the study
CHAPTER 6 - FINDING, SUGGESTIONS, CONCLUSIONS: this is to give conclusion after
the study and to suggest the company for ways to improve after our analysis.
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BRIEF HISTORY
Tata Docomo is Tata Teleservices Limited's TTSL telecom service on the GSM platform arising
out of the Tata Group's strategic alliance with Japanese telecom major NTT Docomo in
November 2008. Tata Teleservices has received a pan-India license to operate GSM telecom
services, under the brand Tata Docomo and has also been allotted spectrum in 18 telecom
Circles. TTSL and has already rolled out its services in various circles. The launch of the Tata
Docomo brand marks a significant milestone Indian telecom landscape, as it stands to redefine
the very face of telecoms in India. Tokyo-based NTT Docomo is one of the world's leading
mobile operators-in the Japanese market, the company is clearly the preferred mobile phone
service provider with a 50 percent market share. NTT Docomo has played a major role in the
evolution of mobile telecommunications through its development of cutting-edge technologies
and services. Over the years, technologists at Docomo have defined industry benchmarks like 3G
technologies, as also products and services like the i-mode TM, mobile payment and a plethora
of lifestyle-enhancing applications. Today, while most of the rest of the industry is only
beginning to talk of LTE technology and its possible applications, Docomo has already started
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conducting LTE trials in physical geographies, not just inside laboratories! Docomo is also a
global leader in the VAS (Value Added Services) space, both in terms of services and handset
designs, particularly integrating services at the platform stage. The Tata Group-NTT Docomo
partnership will see offerings such as these being introduced in the Indian market under the Tata
Docomo brand. Tata Docomo has also set up a 'Business and Technology Cooperation
Committee, comprising of senior personnel from both companies. The committee is responsible
for identification of the key areas where the two companies will work together. Docomo, the
world’s leading mobile operator will work closely with Tata Teleservices Limited management
and provide know- how on helping the company develop its GSM business. Despite being a late
entrant, Tata Indicom, TTSL's CDMA brand, has already established its presence and is the
fastest-growing pan-India operator. Incorporated in 1996, Tata Teleservices Limited is the
pioneer of the CDMA 1x technology platform in India. Today Tata Teleservices Limited, along
with Tata Teleservices (Maharashtra) Ltd, serves over 37 million customers in more than
320,000 towns and villages across the country offering a wide range of telephony services
including Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wire line
Services.
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HISTORY
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
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. The company has rolled out GSM services in 14 of India’s 22 telecom Circles in a quick
span of under six months. The company plans to launch pan-India operations by the end of FY
2009-10. Tata Docomo marks a significant milestone in the Indian telecom landscape, and has
already redefined the very face of telecoms in India, being the first to pioneer the per- second
tariff option-part of its ‘Pay for What You Use’ pricing paradigm. Tokyo-based NTT Docomo is
one of the world’s leading mobile operators-in the Japanese market, the company is the clear
market leader, used by over 50% of the country’s mobile phone users. Tata Docomo is part of the
Indian conglomerate Tata Group. The company received the license to operate GSM services in
nineteen telecom circles and was allotted spectrum in eighteen of these circles and launched GSM
services on 24 June 2009.
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Corporate Philosophy
With the aim of creating a new world of communications culture, we NTT Docomo will devote
all the skills, know-how and energy towards the establishment of more "personal
communication" with our customers that contribute to their heartfelt satisfaction.
A New World of Communications Culture
More personal communication
Reliable access
Real time access
E-communication One-to-one “personal
This gives birth to a new world of communications culture
Freedom to enjoy communications anytime, anywhere with anyone
Opening of endless lifestyle horizons
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Launched 3G Network
On 5 November 2010, Tata Docomo became the first private sector telecom company (third
overall) to launch 3G services in India, with a 20 city launch. Tata Docomo's HSPA+ 3G
network, set up with the assistance of NTT Docomo, supports high-speed internet access with
speeds of up to 21.1 Mbit/s. The network also supports high definition voice for superior quality
voice calls.On July 19, 2011, Docomo and Aircel entered into a roaming agreement for 3G
services to jointly roll out 3G networks in the circles where they both have spectrum. In the
spectrum auction held last year, Aircel won 3G spectrum in 13 of India's 22 circles (service
areas), while Tata Docomo was awarded 3G licenses in nine circles. This deal would give both
companies 3G coverage in 19 telecom circles of India. They will not have coverage on 3 circles -
Delhi, Himachal Pradesh and Mumbai.Still the companies have three circles in common -
Karnataka, Kerala and Punjab.On December 14, 2011, Docomo ended its agreement with Aircel.
Both operators ended the deal after the Department of Telecom said that such 3G arrangements
were illegal, as the pacts violate licence terms and conditions. Tata Docomo and Aircel currently
have bilateral roaming agreements to allow their subscribers to seamlessly use 3G on roaming.
Docomo had about 1.5 million 3G subscribers as of May 201115 | P a g e