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CONTENTS
CHAPTER 1 Page 5Executive Summary
CHAPTER 2 Page 6An Introduction
CHAPTER 3 Page 10
Literature Review
CHAPTER 4 Page 27
Research methodology
CHAPTER 5 Page 32
Analysis & Conclusion
CHAPTER 6 Page 40
Annexure
CHAPTER 7 Page 47
Bibliography
1
EXECUTIVE SUMMARY
The research proposal gives the problem statement which is to
study the popularity of Tata DoCoMo amongst youth. The research
objective is:
To study the awareness
To study the acceptability
To study the demand
of Tata DoCoMo amongst youth.
Research design which the research group will follow is to undertake
descriptive research.
The benefits of study is that it will help us in identifying the perception
of Tata DoCoMo amongst youth & will also help us to know the best
suited or most wanted offer of Tata DoCoMo. The importance of study
is that it will also help to face competition in the market once number
portability is established.
The research group has selected non probability method of sampling.
The sample comes out to be 50 of which 25 males and 25 females
belonging to age group of 20-25 years will be sampled by contact
method of questionnaire. The research group plans to analyze the data
using tools like editing, coding, tabulation, questionnaire design.
The bibliographies, appendices, the research group used to make this
research proposal are given at the end. The research proposal is
comprehensive study of the proposed research that the research group
plans to conduct.
2
Introduction
3
PROBLEM STATEMENT
Popularity of Tata DoCoMo amongst
Youth
4
OBJECTIVE AND RATIONALE FOR THE PROJECT
Tata DoCoMo has introduced the new pulse rate i.e 1p/sec &
penetrated the market. 1p/sec is equivalent to 60p/min. Is our youth
ready to accept & switch over to new pulse rate? Maximum new mobile
users are the youth.
Therefore, the objective of the project is
TO STUDY:
Awareness
Acceptability
Demand
of the Tata DoCoMo amongst the youth
So the decisions can be made regarding new offers & promotion
to attract more youth. Because the war is no more for the network
coverage but for the value added services & better packages.
5
RESEARCH DESIGN:
DESCRIPTIVE
The research group will use descriptive research design where the
main technique would be survey. This method has been adopted as it
will help us to understand the Popularity of Tata DoCoMo amongst
youth
Data Collection Sources
Secondary Sources
Internet
Primary Sources
Surveys(Interview/Questionnaire)
6
Literature Review
7
COMPANY OVERVIEW
"As a partnership of two pioneering brands, TATA DOCOMO promises to
deliver relevant new applications and services that will make everyday
life simpler and more enjoyable for the consumer. In a market that is
cluttered with many operators and confusing options, we will offer
simplicity to consumers by being the country's most transparent,
innovative and liberating telecom brand." - Deepak Gulati,
President, GSM Business, Tata Teleservices Limited, in June
2009.
On June 10, 2009, Tata Teleservices Limited (Tata Teleservices), a
CDMA mobile service provider in India, and NTT DoCoMo Inc.
(DoCoMo), a Japan-based mobile phone operator, unveiled a new brand
identity for their GSM service - Tata DoCoMo. Commenting on the new
brand identity, Anil Sardana (Sardana), Managing Director of Tata
Teleservices said, "TATA DOCOMO is a natural choice of GSM brand-
name for us, since it will provide customers a dual advantage-trusted
service from the House of Tata, riding on the technological superiority
of NTT DOCOMO."
DoCoMo was founded in August 1991 as a subsidiary of Nippon
Telegraph and Telephone Corporation (NTT). To reduce its monopoly in
the telecom sector, NTT's mobile communication network was spun-off
in 1992 to form DoCoMo. The new division targeted the mobile cellular
service market in Japan. As of March 2008, DoCoMo had a customer
base of 53 million users covering more than half of Japan's cellular
market. However, since 2006, the company was losing its market
share due to aggressive strategies adopted by low cost competitors,
primarily SoftBank Mobile Corp. that sparked a price war in the market.
When mobile number portability (MNP) was introduced in Japan in
2006, DoCoMo was adversely affected with a drop of the company's
8
market share to 49.7% DoCoMo was also unable to compete with its
rivals in terms of new customer acquisition.
Tata Teleservices was incorporated in 1996 as the telecom division of
the Tata Group lead by Tata Sons. It provided CDMA service in India
under the brand 'Tata Indicom'. Its array of telephony services included
mobile services, wire-line services, public booth services, and wireless
desktop phones. As of 2009, it catered to around 37 million customers
across 320,000 towns and villages of India. In November 2008, Tata
Teleservices announced it was entering into a JV with DoCoMo.
Under the JV, DoCoMo bought a 26 percent stake in Tata Teleservices
for US$ 2.7 billion. Subsequently, DoCoMo made an open offer for 20
percent of the outstanding equity of Tata Telecom Maharashtra Limited
(TTML). In addition to this, DoCoMo acquired 6 percent of additional
shares in the company from the Tata Group.
INDUSTRY OVERVIEW
The Indian telecommunications industry is one of the fastest growing in
the world and India is projected to become the second largest telecom
market globally.
9
According to the Telecom Regulatory Authority of India (TRAI), the
number of telecom subscribers in the country increased to 562.21
million in December 2009, an increase of 3.5 per cent from 543.20
million in November 2009. With this the overall teledensity (telephones
per 100 people) has touched 47.89.
The telecom industry notched up US$ 8.56 billion in revenues during
the quarter ended December 31, 2009 helped by a recovery in
earnings from both mobile and landline services.
According to Business Monitor International, India is currently adding 8-
10 million mobile subscribers every month. It is estimated that by mid
2012, around half the country's population will own a mobile phone.
This would translate into 612 million mobile subscribers, accounting for
a tele-density of around 51 per cent by 2012.
Moreover, according to a study conducted by Nokia, the
communications sector is expected to emerge as the single largest
component of the country's GDP with 15.4 per cent by 2014.
The Indian equipment market was estimated at US$ 24 billion in FY09.
Finnish giant Nokia is the market leader, with over US$ 3.4 billion
revenues in 2008-09, followed by Ericsson at US$ 2.11 billion.
With the availability of the 3G spectrum, about 275 million Indian
subscribers will use 3G-enabled services, and the number of 3G-
enabled handsets will reach close to 395 million by 2013-end,
estimates the latest report by Evalueserve.
According to a Frost & Sullivan industry analyst, by 2012, fixed line
revenues are expected to touch US$ 12.2 billion while mobile revenues
will reach US$ 39.8 billion in India.
10
Moreover, in an attempt to boost auction of 3G spectrum, the
government has allowed prospective bidders to raise short-term funds
from domestic market, which could be refinanced through external
commercial borrowings (ECBs) within 12 months. The government is
expected to mop up US$ 7.53 billion through the auction of 3G
spectrum, which is likely to be completed by March 2010. It has fixed
the reserve price at US$ 753.74 million.
State-run telecom operator BSNL has rolled out 3G services in 318
cities with 856,000 subscribers. BSNL has plans to cross 400 cities by
March 31, 2010 and this will be increased to 760 cities by September
2010. And even as debate on 3G continues, TRAI has started
consultation on the next level of telecom services. Fourth generation or
4G offers download at faster speeds.
Value-Added Services Market
Currently, mobile value-added services (MVAS) in India accounts for 10
per cent of the operator's revenue, which is expected to reach 18 per
cent by 2010. According to a study by Stanford University and
consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74
billion by 2010.
In a bid to increase revenue from add-on services, India's top two
mobile firms, Bharti Airtel Limited and Reliance Communications both
plan to launch online mobile applications stores.
Bharti Airtel will provide more than 1,250 applications across 25
categories including games, books and social networking on its
applications store.
Reliance Communications’ first version of its applications store would
go live for GSM customers by the end of February 2010, and by the
11
end of March 2010 an expanded version would be available to its code
division multiple access (CDMA) customers as well.
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.
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.
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.
Tata Teleservices is planning to invest an additional US$ 1 billion
in its recently-launched GSM service Tata DoCoMo. It had already
committed an investment of US$ 2 billion for the GSM services
when it was launched in June 2009.
Reliance Infratel, the tower subsidiary of Reliance
Communications (RCom), 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 WiMax 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.
12
Manufacturing
India's telecom equipment manufacturing sector is set to become one
of the largest globally.
Mobile phone production is estimated to grow at a CAGR of 28.3 per
cent from 2006 to 2011, totalling 107 million handsets by 2010.
Revenues are estimated to grow at a CAGR of 26.6 per cent from 2006
to 2011, touching US$ 13.6 billion.
Rural Telephony
Rural India had 76.65 million fixed and Wireless in Local Loop (WLL)
connections and 551,064 Village Public Telephones (VPT) as on
September 2008. Therefore, 92 per cent of the villages in India have
been covered by the VPTs. Universal Service Obligation (USO) subsidy
support scheme is also being used for sharing wireless infrastructure in
rural areas with around 18,000 towers by 2010.
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 pan-India 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.
13
The Department of Telecommunications (DoT) has stated that
foreign telecom companies can bid for 3G spectrum without
partnering with Indian companies. Only after winning a bid,
would they need to apply for unified access service licence
(UASL) and partner with an Indian company in accordance with
the FDI regulations.
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
COMPETITION ANALYSIS
The Cellular Operators Association Of India (COAI) has just released
their January 2010 list for the number of GSM subscribers across the
various cell phone networks in India. Here is the subscriber count and
market share of the various mobile network operators.
Internet growth -- when players overshoot on the basis of
overoptimistic projections. This may be the time for a reality check and
reassessment for the players as well as regulators. But in the long run,
the prospects for the industry are quite good."
"The future of the industry needs to be seen across various timelines,"
says Raman of TSMG. "The next six months will see new operators
completing their footprint and at least three serious operators
launching services in the country. All of this points to an intense phase
of competition and price cuts. Factor in the 3G auction, and one would
see below par profitability for [telecom companies] over the next six to
eight quarters. The industry could also expect to see consolidation as
much as and as fast as regulation allows it to happen."
According to Parida, the number of players in the Indian market has led
to fragmentation, and that needs to be addressed. "We feel market
forces must be allowed to have a freer play in India and that will
certainly lead to a consolidation phase ahead. Telecom, particularly
mobile telephony, has become an integral part of India's social and
economic fabric. As an industry, it is here to stay."
The industry will stay, but not the large number of companies in the fray, according to
Raman. "Operators with access to resources through internal accruals or credit lines will
stand to gain from [any coming] consolidation."
24
Research Methodology
25
SAMPLING DESIGN:
Process of Sampling
Target Population:
The population is defines in terms of:
o Element: The element of our research is popularity of Tata
DoCoMo amongst youth
o Sampling unit: Sampling unit would consist of people who
use mobile phones.
26
Define the population
Identify Sampling Frame
Specify Sampling unit
Select Sampling method
Determination of Sample Size
Specify sampling plan
Selection of Sample
o Extent: Extent of our research is limited to humans all over
the world.
o Time: February 1 to February 28 , 2010.
Sampling Frame:
Sampling frame is the list of elements from which the sample is
drawn. Sampling frame for our research would be youth,
housewives, corporate who use mobile phones.
Sample Size:
o This means we need to decide “how many elements of the
target population are to be chosen?” The sample size
depends upon the type of study that is being conducted.
The sample size depends upon the resources available.
The sampler size is determined by:
o N= (z*s/E)^2
o Where
o n=sample size
o s=standard deviation
o E=error / acceptance level
o z=confidence level
o The sample size for our research project is 50.
Sample Details:
Age (in
years)
Male Female Total
27
20-25 25 25 50
Total 25 25 50
Sampling Procedure:
There are 2 types of sampling methods probability and non
probability.
Probability sampling methods ensure that the database of users
is known.
Non-Probability sampling methods the database of users is not
available.
In our research project, we chose non-probability sampling
technique as the data related to respondents is not available. We
chose judgmental sampling technique.
SAMPLING METHOD:
Instruments of data collection:
A structured Questionnaire with both open ended and close
ended questions would be used for data collection from the
Target respondents.
Contact method:
The Target respondents would be tapped from different
possible locations like Malls, Institutes, and Corporate offices
randomly as we do not have the pre-hand data of the
respondents who are using mobile phones.
Data collection sources:
28
o Primary: A research with the help of Questionnaire
would be conducted to gather primary data.
o Secondary: Data from internet as well as various books
would be collected in order to study the awareness,
acceptability & demand of Tata DoCoMo.
DATA ANALYSIS:
Structured tools: Tools like Co-relation, Regression, etc.
would be used in order to compare the acceptability of Tata
DoCoMo.
Software: SPSS
Editing: Editing helps in avoiding the unwanted part from the
Questionnaire which may not be very useful in the study.
Coding: Coding is done for the open ended questions.
29
Data Analysis&
Conclusion
30
DATA ANALYSIS
Maximum number of respondents use Vodafone
(56%) & 20% use Airtel. Rest of the respondents use other
service provider.
Maximum number of respondents spends more than Rs. 500 & majority of the respondents spend more than Rs. 100 per
month. Majority of respondents talk on mobile for more than 15 min daily.
31
According to the respondents, 33 respondents (66%) consider good network coverage as one of the important criteria,
whereas 37 respondents (74%) consider price as one of the important criteria.
Around 58% of the respondents have not changed their service provider ever.
32
According to 80% of the respondents, they would not like switch to any other service provider. But maximum prospective switchers’ i.e 7 out of 15 respondents are prospective switchers
& would like to switch to Tata DoCoMo.
According to the survey, 35 respondents i.e 70% of the respondents would change their service provider.
33
Out of 50 respondents, only 13 respondents are using 1p/s plan i.e 26%; Whereas 21 respondents i.e 42% are willing to take
1p/s plan.
34
According 17 respondents, call rates are as good as their current plan.
35
Also, 15 respondents think that Tata DoCoMo offer better ISD rates than their current service provider & 14 respondents think that they are as good as their current plan.
According to 25 respondents i.e 50%, SMS package is better offered by Tata DoCoMo.
Also, 23 respondents i.e 46%, consider Buddy Net service to be better than their current service provider.
Having compared all the schemes with current plan, 20 respondents find SMS offer by Tata DoCoMo to be the most attractive scheme.
78% respondents think that Tata DoCoMo should introduce Post Paid scheme.
36
CONCLUSION
The findings are as follows:
It is seen that 98% of the respondents are aware of the Tata
DoCoMo & their 1p/s plan. Therefore the awareness level of Tata
DoCoMo as a brand is very high.
While choosing a service provider good network coverage & price
play a critical role in decision making process.
Generally respondents haven’t changed their service provider so
frequently but they will switch if number portability exists.
As per this survey, majority of the respondents would shift to
Tata DoCoMo if their existing number becomes portable.
Also, majority of the respondents would like to shift to 1p/s
scheme.
But at the same time current service providers of the majority
youth is offering something equivalent or better than 1p/s.
Youth finds the SMS plan (pay for first 3 SMS & get 100 free)
attractive which is applicable to Maharashtra circle.
Also, one of the major reasons for not switching to Tata DoCoMo
is unavailability of Post paid offers.
Postpaid plans will be welcomed by the youth.
37
Therefore, Tata DoCoMo has a future with the new pulse rate & SMS
plans.
And, as the number portability is expected by the 2010 end, the
market shows great potential for new pulse rate & hence Tata
DoCoMo.
The youth which has great SMS usage will be switched over to Tata
DoCoMo if number portability comes into existence.
Annexure
38
Survey on Tata DoCoMoDo you use mobile? *
Yes
No
How long have you been using mobile phone? *
for less than 1 year
1 to 3 years
3 to 5 years
more than 5 years
Name the current mobile service provider *
Vodafone
Airtel
Tata DoCoMo
Reliance
Idea
Other:
Purpose of usage *
Business
Personal
Both
How much do you spend on mobile service per month? *
Less than Rs 100
Rs 100 to rs 300
Rs 300 to Rs. 500
39
More than rs 500
How much air time do you spend daily on mobile phone? *
Less than 15 min daily
15 min to 30 mins daily
30 min to 1 hr daily
More than 1 hr
How often do you switch to another service provider? *
Less than 6 months
6 months to 1 yr
1 yr to 2 yrs
More than 2 yrs
Never
What is the most important factor you considered when you choose a mobile service provider? *
Good network coverage
Price
Value added service
Customer Service
Other:
Rate your current service provider *
1 2 3 4 5
Worst Excellent
Would you switch to another service provider? *
Yes
40
No
If yes, then which service provider?
Vodafone
Airtel
Tata DoCoMo
Aircell
Idea
Reliance
Would you consider swapping the service provider if number portability is introduced? *
Yes
No
Are you aware of Tata DoCoMo as a mobile service provider? *
Yes
No
Are you using any of the 1 paisa/ sec scheme? *
Yes
No
If no, then are you interested in 1 paisa/second scheme?
Yes
No
Rank the following services offered by Tata DoCoMo
Consider your current plan at Neutral & then compare, whether Tata DoCoMo is better or worse than your current plan
41
Call Rate - Anywhere in India * 1p/sec
1 2 3 4 5
Worst Excellent
SMS offers * 60p/sms, pay for 3 SMSs & get 100 SMSs free
1 2 3 4 5
Worst Excellent
Buddy Net * 1p/ 6sec, Rental Rs. 7/week
1 2 3 4 5
Worst Excellent
ISD call rate * 11p/sec
1 2 3 4 5
Worst Excellent
Choose the most attractive scheme offered by Tata DoCoMo * Choose the scheme for which you would shift to Tata DoCoMo