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 Tata Tele Services Ltd. 1
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
A
PROJECT REPORT
ON
“Comprehensive marketing environment analysis with respect to products,
customers & competitors”
& “launching a new Retail Store”
Faculty of Management StudiesInstitute of Rural Management, Jaipur
In Partial Fulfillment for the requirement of theAward of
Post Graduate Diploma in Business Management2009-2011
SUBMITTED TO: SUBMITTED BY:Mrs. Asha Sharma Sarvjeet AroraProject Guide PGDBM- II Sem.FMS-IRM Roll no.1501Jaipur FMS-IRM, Jaipur
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.
7.3 Launching a new retail store7.3.1 Distribution channel of TTSL7.3.2 Store Location 7.3.3 Store Branding7.3.4 Deliverables to retailers by TTSL7.3.5 Deliverables to TTSL by retailers7.3.6 Launching a new store
(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 –
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.
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
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 flow 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 depreciation 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 ratio (P/E) to gauge valuation.
Price-to-sales ratio (price/sales) is the probably simplest of the valuation approaches: take the market capitalization 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 rating 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 :
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 Communications 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 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. 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 liquidation pretty difficult.
SOME FACTS OF GLOBAL TELECOM MARKET
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.
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.
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.
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.
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.
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."
Mobile market penetration is projected to increase from 38.7 per cent in 2009 to 63.5 per cent in 2013, according to Gartner.
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.
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 TTSLb. 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 strategyg. Plan and support cascading of strategyh. Provide inputs and/or develop White paper.i. Facilitate, Participate and Lead projectsj. Respond to TATA Group's Strategy initiativesk. Develop segmentation framework l. Regulatory Affairsm. Legal & Secretarialn. Strategyo. BPRp. 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
To determine the existing customer satisfaction level.
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
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'.
7. Would you recommend your existing brand to your family and friends?
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.
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.
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.
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.
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
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.
III 7 to 10 <=11 12 to 16 17 to 22IV 11 to 15 <=16 17 to 22 23 to 32V 16 to 20 <=22 23 to 32 33 to 40VI 21 to 30 <=32 33 to 40 41 to 60VII 31 to 40 <=44 45 to 60 61 to 80VIII 41 to 50 <=54 55 to 70 71 to 90IX 51 to 75 <=84 85 to 100 101 to 125X 76 to 100 <=114 115 to 130 131 to 150XI 100 to 150 <=174 175 to 200 201 to 250
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
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
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
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
7. You often use your phone to:A. Call B. SMS C. GPRS D. Multimedia
8. Buying a new mobile network connection, which feature is most important for you?A. Call rates D. Brand NameB. SMS pack E. Value added servicesC. Roaming charges
9. Are you satisfied with the services of your present mobile service provider?A. Yes B. No