Project Report on Study of Consumer Behaviour and Attitude Towards the Cellular Services With Refrence to Aircel

Project ReportProject ReportOnOn

“Study of consumer behavior and attitude towards the cellular services

with reference to AIRCEL

SUPERVISOR: SUBMITTED BY:Mrs. GAYATRI CHOPRA SANDEEP SINGHFACULTY, FMS Enrolment no: 08061237006

MBA 4th semester (Finance)

SESSION 2009-11DIRECTORATE OF DISTANCE EDUCATION

FACULTY OF MANAGEMENT STUDIES NEWDELHI

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Table of Contents

Content Page

1 : INTRODUCTION 1 – 3

2 : REVIEW OF LITERATURE 4 – 6

3 : PROBLEM STATEMENT & OBJECTIVES 7 – 9

4 : NEED & SIGNIFICANCE OF STUDY 10 - 11

5 : SCOPE OF STUDY 12 - 13

6 : INDUSTRY PROFILE 14 – 27

6. 1. Mobile Industry in India

6. 2. Industry Analysis

6. 3. Pestle Analysis

6. 3. 1. Political

6. 3. 2. Economic

6. 3. 3. Social Culture

6. 3. 4. Technology

6. 3. 5. Environmental

7 : COMPANY PROFILE 28 - 36

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7.1. Firms marketing efforts

7. 1. 1. Product

7. 1. 2. Price

7. 1. 3. Promotion

8 : MAJOR COMPETITORS 37 – 50

8. 1. AIRTEL

8. 2. IDEA

8. 3. BSNL

8. 4. VODAFONE

8. 5. RELIANCE

9 : METHODOLOGY 51 - 56

9.1. Sampling Size

9.2. Collect the Data

10 : QUESTIONNAIRE 57 - 64

10.1. Customer Questionnaire

10.2. Retailer Questionnaire

11 : Data Analysis & Interpretation 65 – 79

11.1. Customer Questionnaire

11.2. Retailer Questionnaire

12 : Recommendation 80 - 83

13 : Conclusion 84 - 85

14 : Limitation 86 - 87

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15 : REFRENCE 88 - 89

CERTIFICATE

This is to certify that Mr. SANDEEP SINGH, Enrolment number- 08061237006 has proceeded under by supervision his research Project Report on “Study of Consumer attitude and behavior towards cellular services with Reference to Aircel in the specialization area “FINANCE”.

The work embodied in this report is original and is of the standard expected of an MBA student and has not been submitted in part or full to this or any other university for the award of any degree or diploma. He has completed all requirements of guidelines for the Research project report and the work is fit for evaluation.

Signature of the Guide

Name: Mrs. GAYATRI CHOPRA Designation: LecturerOrganization: FACULTY OF MANAGEMENT STUDIES

Forwarded by head/director of study

centre (with signature name and seal)

4

ACKNOWLEDGEMENT

The Project report is based on my two months training in Aircel Ltd, . In the preparation of this report many persons have extended their valuable time and co-operation to me, therefore I acknowledge all those who remain anonymous.

First of all I am highly obliged to my guide Mrs GAYATRI CHOPRA (Faculty,fMS,Delhi) whose co-operation attitude and precious suggestion has been a great sense of inspiration for me.

I also express my deep sense of gratitude to Prof. S.S (Director, fMS, newdelhi) and other teachers & staff members who extended their guidance & support from time to time.

It is my duty to express gratitude to the management of Aircel Ltd. Aircel has given me the opportunity to complete two months summer training –cum project work in the organization.

I am sincerely thankful to Mr .Amit Kumar Singh (Asst.Manager-finance) at Aircel, for his consistent support, guidance, motivation and providing me with

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necessary input & valuable suggestions from time to time.

SANDEEP SINGHEnrolment No -

08061237006

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INTRODUCTION

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1 : INTRODUCTION

The deregulation in the INDIAN telecommunication markets since

the beginning of the 1997s has brought about significant changes

in the communication industry. The mobile telephone market has

changed dramatically over the past 5-6 years in INDIA.

Mobiles have become so popular that many people use their

handset as their only phone and rarely use a landline.

“The study of consumer behaviour focuses on how individuals

make decisions to spend their available resources (time, money,

efforts) on consumption related items. That includes what they

buy, why they buy it, when they buy it, where they buy it, how

often they buy it, and how often they use it”.

There are a number of reasons for researching for consumer

behaviour like segmentation, target market selection, positioning,

and product/service decision, pricing decision, distribution and

promotion decision.

Model of consumer decision making process is helpful to

understand the consumer behaviour. It shows how the external

and internal factors influence the consumer attitude formation

and attitude change. The model reflects cognitive (or problem

solving) consumer and, to some degree emotional consumer.

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“An attitude is a learned predisposition to behave in a

consistently favourable or unfavourable way with respect to a

given object.

This study will identify the gap between consumer attitude and

behaviour towards the cellular services in INDIA.

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REVIEW OF LITERATURE

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2 : REVIEW OF LITERATURE

Source 1: CELLULAR NEWS:

Aircel signs tower sharing dear with BSNL:

Aircel has always emphasized upon building its brand satisfactory and reliable among customer. Therefore, India's Aircel has announced a 10-year passive infrastructure sharing agreement with state owned operator, Bharat Sanchar Nigam Ltd (BSNL). Aircel, which already has around 32,000 base stations, says that it will now have access to approximately 45,000 BSNL towers across all its licensed circles. The financial terms of the agreement were not disclosed.

"Aircel will now have access to strategically located sites across BSNL's 21 circles (excluding Mumbai and Delhi). Leveraging BSNL's passive infrastructure will help Aircel meet its aggressive network roll out plans in addition to reducing operational cost," Aircel Chief Operating Officer Gurdeep Singh said in a statement.

Kuldeep Goyal, CMD, BSNL added, "We are happy to partner with Aircel. BSNL has a strong nationwide coverage and offers the best value proposition in the Indian telecom market. Our objective is to provide quality and reliable service and thereby increase our partner's confidence".

Source 2: MOBILE WORLD

Aircel expanding its market base:

Figures from the Mobile World analysts report that Aircel had just under 22 million active subscribers at the end of June.

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Aircel is a joint venture between Malaysia's Maxis Communications (74%) and India's Apollo Hospital Enterprise (26%).

Source 3: INDIA INFOLINE

Aircel Leader of tomorrow:

Aircel, the market leader in Chennai, Tamil Nadu, North East and Assam Telecom Circles, with more than 4.2mn customers. Aircel has announced the launch of its GSM services in Bihar. This is the ninth circle across India in which Aircel will be providing their mobile services and the seventh in North & East India.

This raises the competition for the existing companies. Aircel has decided to launch about 10,000 retail outlets all over Bihar to provide better service to its customers. Now, whether this succeeds or not in its aim, will be said only by time.

"Aircel has obtained 14 new licenses to roll out its GSM cellular services besides getting the license to provide International Long Distance (ILD) and National Long Distance (NLD) telephony services" said Jagdish Kini, Group Chief Executive Officer, Aircel. He further added, "With these new licenses, Aircel is poised to transform itself into a pan-India operator". Commenting on Bihar launch Kini said, "Bihar Telecom Circle with 5 % penetration it offers Aircel an excellent opportunity to launch its growth plans in India."

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PROBLEM STATEMENT&

OBJECTIVES

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3 : PROBLEM STATEMENT

The company has more opportunity to capture the market. The

cellular service industry is more competitive then ever before.

There is a need to identify the gap between consumer behavior,

attitude and company practice. The findings of this study will be

important to understand the consumer attitude, habits, opinion

and their beliefs towards the product, and the attitude towards

the company marketing efforts.

The result of the study will help to make a suitable

recommendation for cover the gap between consumer behavior

and the company marketing efforts.

OBJECTIVES OF THE PROPOSED STUDY

Objective is to study the consumer attitude & behavior towards

cellular service. This project report has been formulated with

specialty of behavioral analysis of consumer. By throwing light on

their need for communication, effort has been put on deriving

there response towards communication and its various standards.

The aim of project has been to sort out basic things that

consumer seeks while asking new Telecom connection and

promising things of Telecom that makes them reliable consumer.

Since, I have done my internship in chapra (Bihar). I have given

my best in analysis and interpretation to study chronological

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order working pattern of Telecom industry by working with

ZONAL and AREA sales manager, super-distributor, and retailer.

The project title, which I have taken, is “Study of Consumer

behavior and attitude towards cellular services with reference to

AIRCEL (chapra,Bihar), the objectives of study are:-

PRIMARY OBJECTIVE

To understand the consumer behavior and attitude regarding

cellular market.

Identify the Potential customer in the corporate sector.

SECONDARY OBJECTIVE

To identify the action of the competition in the market

Explore and crack new accounts

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NEED & SIGNIFICANCE OF STUDY

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4 : NEED AND SIGNIFICANCE OF

STUDY

Understanding consumer behavior and “knowing customers” is

never simple. Customers may say one thing but do another. They

may not be in touch with their deeper motivations.

“Consumers have more power then ever before”.

“Consumers have access more information than ever before”.

There are a number of reasons for researching of consumer

behaviour like segmentation, target market selection, positioning,

and product/service decision, pricing decision, distribution and

promotion decision.

The main significance and need of this research is to identify the

consumers’ attitude & behaviour towards Cellular services and

analysis. The findings of this study will be helpful to understand

the consumer attitude and behaviour. According to the consumer

attitude and their behaviour company can make marketing

strategy for attracting the larger customers for future.

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SCOPE OF STUDY

18

5 : Scope of study

In recent year, adoption of mobile phone has been exceptionally

rapid in many part of the world and especially in INDIA; mobile

phones are almost as common as wrist watch. The INDIAN

telecommunications market is characterized by a small number

of large players and a much more sizeable number of small

companies. The mobile industry has become more competitive.

It is necessary to identify the consumer attitude & behavior

towards product and what do they want or needed.

The study will be focused on the consumer attitude & behavior

towards cellular services. The findings of the research will be

helpful to identifying the consumer attitude, behavior, habits to

buy a mobile phone and company practicing. This will be vital to

identify the gap between consumer attitude and company

practicing. The result of the study will be important to make a

marketing strategy for the future customers to fulfill the company

objective.

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INDUSTRY PROFILE

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6 : INDUSTRY PROFILE

6.1 : MOBILE INDUSTRY IN INDIA

History of Indian Telecommunications

Started in 1851 when the first operational land lines were laid by

the government near Calcutta (seat of British power). Telephone

services were introduced in India in 1881. In 1883 telephone

services were merged with the postal system. Indian Radio

Telegraph Company (IRT) was formed in 1923. After

independence in 1947, all the foreign telecommunication

companies were nationalized to form the Posts, Telephone and

Telegraph (PTT), a monopoly run by the government's Ministry of

Communications. Telecom sector was considered as a strategic

service and the government considered it best to bring under

state's control.

The first wind of reforms in telecommunications sector began to

flow in 1980s when the private sector was allowed in

telecommunications equipment manufacturing. In 1985,

Department of Telecommunications (DOT) was established. It was

an exclusive provider of domestic and long-distance service that

would be its own regulator (separate from the postal system). In

1986, two wholly government-owned companies were created:

the Videsh Sanchar Nigam Limited (VSNL) for international

telecommunications and Mahanagar Telephone Nigam Limited

(MTNL) for service in metropolitan areas.

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In 1990s, telecommunications sector benefited from the general

opening up of the economy. Also, examples of telecom revolution

in many other countries, which resulted in better quality of

service and lower tariffs, led Indian policy makers to initiate a

change process finally resulting in opening up of telecom services

sector for the private sector. National Telecom Policy (NTP) 1994

was the first attempt to give a comprehensive roadmap for the

Indian telecommunications sector. In 1997, Telecom Regulatory

Authority of India (TRAI) was created. TRAI was formed to act as a

regulator to facilitate the growth of the telecom sector. New

National Telecom Policy was adopted in 1999 and cellular

services were also launched in the same year.

Telecommunication sector in India can be divided into two

segments: Fixed Service Provider (FSPs), and Cellular Services.

Fixed line services consist of basic services, national or domestic

long distance and international long distance services. The state

operators (BSNL and MTNL), account for almost 90 per cent of

revenues from basic services. Private sector services are

presently available in selective urban areas, and collectively

account for less than 5 per cent of subscriptions. However,

private services focus on the business/corporate sector, and offer

reliable, high- end services, such as leased lines, ISDN, closed

user group and videoconferencing.

Cellular services can be further divided into two categories:

Global System for Mobile Communications (GSM) and Code

Division Multiple Access (CDMA). The GSM sector is dominated by

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Airtel, Vodfone-Hutch, Idea Cellular and Aircel, while the CDMA

sector is dominated by Reliance and Tata Indicom. Opening up of

international and domestic long distance telephony services are

the major growth drivers for cellular industry. Cellular operators

get substantial revenue from these services, and compensate

them for reduction in tariffs on airtime, which along with rental

was the main source of revenue. The reduction in tariffs for

airtime, national long distance, international long distance, and

handset prices has driven demand.

Issues and Challenges of telecom industry

There are various issues surrounding the telecom Industry which

pose challenges for the Industry. These issues arise out of various

policy announcements by the regulator which has resulted in

increased competition between the players? If we take a closer

look at the issues and challenges , a majority of them

revolve around the most important resource in the telecom

Industry- “SPECTRUM”. Spectrum is a range of electromagnetic

radio frequencies used for transmission of voice, data and

images.

Telecom operators send and receive frequencies to enable

communication between two phones. Enhancement of subscriber

criteria for allocation of additional 2G spectrum the controversy

began when TRAI and DOT’s technical advisory board rose the

bar on the minimum subscriber norms for operators to qualify for

additional spectrum. The new subscriber norms were around

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three times higher than the existing ones. This move was

challenged by GSM operators in the telecom tribunal. DoT then

referred the matter to its technical arm, Telecom Engineering

Centre (TEC), which in its report recommended that the allocation

norms should be hiked between 2-15 times depending on the

circle. The Cellular Operators Association Of India, the body

representing all GSM players, said that it would fle yet another

petition with the telecom tribunal challenging the TEC report.

Access licence made technology neutral the Govt also permitted

existing universal access service licencees to offer wireless

services using either GSM or CDMA technology. This decision

paved way for existing CDMA operators to provide GSM-based

services and vice-versa, subject to the availability of spectrum

and payment of the prescribed fees. 3G spectrum auction to be

open to all in another move, the government announced that 3G

spectrum would be auctioned, which would be open to all. This

means that both existing operators and new entrants, whether

owned by domestic entrepreneurs or foreign companies such as

AT&T and Deutsche Telekom, who currently do not have

presence in India, would be eligible to bid for 3G spectrum. This

view is in contradiction with the Bharti Airtel Ltd and others we

expect the mobile subscriber base for the industry to reach 366

mn by 2012 from 166 mn as on 2007 Telecom Regulatory

Authority of India’s (TRAI) recommendation of allocating 3G

spectrum only to existing service licencees. Mobile Number

Portability (MNP) from last quarter of 2008 furthermore, to reduce

entry barriers and increase competition, the Govt. has decided to

implement Mobile Number Portability (MNP) in a phased manner.

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MNP would give subscribers the freedom to change their existing

wireless operator while retaining the same number. To begin

with, MNP would be implemented in the four metros of Mumbai,

Chennai, Delhi, and Kolkatta during the last quarter of 2008.

Threat from satellite telephony:

A satellite telephone is a mobile phone that communicates

directly with orbiting communications satellites. Depending on

the architecture of a particular system, coverage may include the

entire Earth, or only specifc regions. These satellite phones

provide worldwide connectivity on a single number. The largest

users of satellite phones in India as well as worldwide, till date,

are the government and defense forces. However these phones

can be used only after the No Objection Certifcate (NOC) is issued

by DOT. If cost of these handsets reduces, then they may pose a

threat.

Classification of Telecommunication services:

Basic services

Cellular services

Internet Service Provider (ISP)

The telecom commission was set up by the government of

INDIA& notification dated 11 Apirl 1989 with admistrative &

financial power of government deal with various aspect of

telecommunication. The entry of private sector in the provision of

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telecom service a need was full to have an independent

regulatory body the above requirement was indicated in the

guideline issue for entry of private sector in basic telecom

service. In 1997 telecom regulation act India was established in

pursuance which was act of parliaments to regulate the service or

it amended by act 2000. Mobiles have become so popular that

many people use their handset as their only phone and rarely use

a landline. The de regulation in the INDIA telecommunication

markets since the beginning of the 1997s has brought about

significant changes in the communication industry. Price

competition and newly created services the telecommunication

industry has become the largest industry. In recent year,

adoption of mobile phone has been exceptionally rapid in many

part of the world and especially in INDIA; mobile phones are

Almost as common as wrist watch

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6.2 : INDUSTRY ANALYSIS

Mobile operators with subscribers wise & market

share wise of India July 2009

S.No.

Service Providers

Subscribers(Mn.)

Market Share (%)

1 Bharti Airtel 82.92 24.672 Reliance Comm 59.57 17.723 Vodafone 58.76 17.494 BSNL 45.28 13.475 Idea Cellular 32.81 9.76

6Tata Teleservices 31.02 9.23

7 Aircel 15.38 4.578 MTNL 4.1 1.229 Spice Telecom 3.71 1.110 BPL 1.88 0.56

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Subscribers (Million)

0

10

20

30

40

50

60

70

80

90

Subscribers (Million)

Total Subscriber base in August 2009:

Indian Telecom Statistics (Aug 2009)

Total telephone subscriber base 452.91Over all Tele-density 38.88%Fixed-line user base 37.66Wireless user base (GSM+CDMA+WLL(F)) 415.25GSM Subscribers 298.15CDMA Subscribers 105.51Monthly additions (Wireline + Wireless) 11.44Monthly additions (Wireline) -0.15Monthly additions (Wireless) 11.59Broadband subscribers 6.4

(Subscriber numbers in million)

Top 10 mobile Countries:

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Rank

Operator

Subscribers in million Data Date

1 China 650 9-Jan2 India 392 9-Mar3 US 278.99 8-Dec4 Russia 189.61 9-Feb

6Indonesia 154.757 8-Dec

5 Brazil 153.7 9-Mar8 Japan 112.05 8-Mar

7Germany 106 8-Sep

9 Italy 92.8 8-Oct10 Pakistan 91.44 9-Mar

Online Retailers

There is a correlation between high spending mobile phone users

and Internet users, making the Internet a natural sales channel

for mobile phones. Almost every retailer of mobile phones now

has a fully interactive website, often mirroring the choice in the

shops, and sometimes offering special Internet-only deals. For the

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major retail chains and the networks, the Internet creates a

showcase as well as giving consumers flexibility about where to

buy a mobile phone. It also gives them a means of competing for

the Internet consumer, against a rising tide of other specialists.

Many of the small independent mobile phone shops have

established websites and there are some that have opted to

major on Internet selling.

There is little doubt that Internet retailing has increased share of

the mobile phone market in recent years. There are often price

advantages for consumers, and accreditation by The Consumer's

Association for good quality outlets helps to give first time buyers

confidence about where to shop. Price comparisons may be made

via search engines on the Internet, cutting the search time that

consumers spend looking for what they want. This tends to make

the Internet especially price-aggressive.

6.3. : Pestle Analysis

6. 3. 1. : Political /legal

In January 2005 the competition commission ruled that mobile

phone companies termination (the prices they charge for

access to their network from other network & landlines) are too

high .it recommended an immediate one off prices reduction

around 14.41%

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New regulation published by the five mobile phone operator in

India Bharti Airtel, Vodafone, Bsnl, Reliance, Idea will stop

children from entering immoderate chartroom, porn sites and

Grambling. Regulatory restriction on termination charges and

calls to landlines are forcing prices down

6. 3. 2. : Economic

Population

India population growth is high . As the mobile phone market is

already nearing growth point, this means that the total no. of

subscriber is to grow.

GDP

The India gross domestic product is increasing, which is a positive

sign for the mobile phone market. The contribution of the Indian

telecom sector to the nation's GDP is expected to increase from 2

per cent in 2006 to an estimated 3.6 per cent in 2010.

Disposable Income

Household disposable income is on the increase. This may be

positive for retailers’ hopes of increasing ARPU and no. services

users take up through their phones.

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Unemployment

The India unemployment rate is high, which is a negative sign for

mobile retailer, because there is a large proportions of the

population earning low and therefore with lower disposable

income to spend on mobile phones

6. 3. 3. : Social Culture

Mobile has become fashion necessary and social indicator.Using

text, photo messaging, games and location based information,

downloading ring tones, mobile internet access, replacement

trend and customer wants pick and mix tariffs.

More trend of replacement.

Increasing rural subscribers

Increased in pay as you go instead of monthly tariff

Changing life style has impact on their buying behavior; customer

wants new technology new different tariffs and new mobile sets

etc. These changes are directly impact on the sale of mobile

phones. 78% sales in north India.

Consumers are far more interested in how handsets fit in with

their lifestyle than they are in screen size, onboard memory or

the chip inside, shows an in-depth study by telecommunications

company Ericsson. Dating services and other more adult match-

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making services are proving to be a strong stream of revenue

worth millions for mobile companies. There are currently about

18 million video phones in use in the India. With more people

buying video mobiles, 3G dating could be the basis for a

successful and safe way to meet people.

Lots of people find it easier to be honest writing e-mail or text

than face-to-face. Lots people are quite shy and they feel

vulnerable."

6. 3. 4. : Technological

High speed of technology transfer ( New function sets, 3G, 4G,

Photo messaging, MMS). Replacement market is highly increasing

of mobile phones due to new technological changes .Mobile

phone firms and manufacturers, including Nokia, LG, Samsung

and Motorola, have joined forces to develop the next generation

of high-speed networks. The technology will be more than 10

times quicker than current 3G services.

Mobile phone firms and manufacturers have joined forces to

develop the next generation of high-speed networks. The

technology will be more than 10 times quicker than current 3G

services.

As technology continues to develop, it is bringing about real

changes in people's lifestyles, making them more dependent on

information and communication technologies.

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6. 3. 5. : Environmental

In India has million of handset & sim cadres are discarded every

year. These phones represent a serious environmental problem

as they contain a number of hazardous materials. The cadmium

from one battery is enough to pollute 600,000 liters of water.

The directive waste will require mobile phones to be recycled or

disposed of in an environmentally responsible manner at the end

of their lives. There will be obligations on all sectors of the

telecommunications industry to play a responsible role in handset

waste management

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COMPANY PROFILE

7. : COMPANY PROFILE

On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepon

Seluler. Maxis is currently in the middle of rolling out a Java wide

network to establish the company as a national operator. The

initial launch phase encompasses 1,300 BTS, providing both 2G

35

and 3G services. NTS expects to have up to 480 employees by

launch date and to increase significantly upon launching. Maxis

in India Maxis completed the acquisition of a 74% stake in Aircel

on March 21, 2006. Currently, Aircel has operations in 9 of the

23-telecom circles of India - Chennai, Tamil Nadu, West Bengal,

Orissa, Assam, North East, Jammu and Kashmir, Himachal

Pradesh and Bihar. Aircel launched its services in Bihar and

Himachal Pradesh in December 2006 and also recently received

the licenses to operate in the remaining 14- telecom circles of

India giving it the ability to become a pan-India player. Maxis’

expansion into Indonesia and India is another milestone in our

aspiration to be the regional communications leader of choice.

The acquisition of a 51% stake in PT Natrindo Telepon Seluler

(NTS), Indonesia and a 74% equity interest in Aircel, India

provides new growth opportunities for Maxis. These acquisitions

give Maxis a strong foothold in two of the world’s most attractive

high-growth, low-penetration markets. This marks the beginning

of the new world of Maxis – a world beyond voice, and beyond

borders. MAP Maxis in Indonesia On 29th April 2005, Maxis

acquired 51% of PT Natrindo Telepon Seluler. Maxis is currently in

the middle of rolling out a Java wide network to establish the

company as a national operator. The initial launch phase

encompasses 1,300 BTS, providing both 2G and 3G services. NTS

expects to have up to 480 employees by launch date and to

increase significantly upon launching. Maxis in India Maxis

completed the acquisition of a 74% stake in Aircel on March 21,

2006. Currently, Aircel has operations in 9 of the 23 telecom

circles of India - Chennai, Tamil Nadu, West Bengal, Orissa,

36

Assam, North East, Jammu and Kashmir, Himachal Pradesh and

Bihar. Aircel launched its services in Bihar and Himachal Pradesh

in December 2006 and also recently received the licenses to

operate in the remaining 14 telecom circles of India giving it the

ability to become a pan- India player. Aircel expects to

aggressively grow its subscriber base in India and is developing a

broad range of new propositions for its customers - from

branding, to increased network coverage, to innovative product

and service offerings, to refreshing customer experience. As of

31st December 2006, Aircel serves more than 4.5 million

subscribers with a network comprising of almost 4,000 BTS. Aircel

continues to be the market leader in Tamil Nadu and Chennai

circle. Aircel’s network provides 2G and GPRS services, and is

EDGE capable. Aircel is also currently in the process of

conducting 3G Trials across different cities in India. In addition,

Aircel is the first cellular operator in India to launch wireless

Internet services using WiMAX technology. It aims to immediately

extend its WiMax coverage to over 20 cities to serve enterprise

broadband customers. Over the next few quarters, India is

expected to add new subscribers at the rate of 5 to 6 million per

month. India offers huge opportunities for Aircel given the current

low mobile penetrations levels as well as challenges in terms of

its geographic spread and low ARPU levels. Aircel expects to

aggressively grow its subscriber base in India and is developing a

broad range of new propositions for its customers - from

branding, to increased network coverage, to innovative product

and service offerings, to refreshing customer experience.

37

As of 31st December 2006, Aircel serves more than 4.5 million

subscribers with a network comprising of almost 4,000 BTS. Aircel

continues to be the market leader in Tamil Nadu and Chennai

circle. Aircel’s network provides 2G and GPRS services, and is

EDGE capable. Aircel is also currently in the process of

conducting 3G Trials across different cities in India. In addition,

Aircel is the first cellular operator in India to launch wireless

Internet services using WiMAX technology. It aims to immediately

extend its WiMax coverage to over 20 cities to serve enterprise

broadband customers. Over the next few quarters, India is

expected to add new subscribers at the rate of 5 to 6 million per

month. India offers huge opportunities for Aircel given the current

low mobile penetrations levels as well as challenges in terms of

its geographic spread and low ARPU levels Aircel’s current and

proposed footprint is illustrated below.

MISSION STATEMENT : We are conditionally committed to

exceeding our customer’s expectations. We will provide network

and services that are innovative and reliable, allowing our

customers any time anywhere communications. We will attract,

develop and retain an exceptional team of people. We are

committed to enhancing the quality of real life in the community

in which we operate. We will meet the financial expectation of

our shareholders. OUR GOALS AND VALUES

CUSTOMERS : our customers are our most valued assets. We

will strive to exceed their expectations at all time by providing

38

them with superior services that embody value, innovation,

quality and care.

PEOPLE : our people are our greatest resources. We will attract,

train and retain the best. We will challenge them to develop their

full potential in the context of our company goals.

INTEGRITY : We will maintain and strive for the highest levels of

personal and professional integrity and honesty in all ours

dealings. We will keep our promises.

RESPECT : We will treat with respect & dignity all people we deal

with.

EXCELLENCE : We are committed to excellence in all what we

do. There will be no place for mediocrity.

WORK : We will promote a work environment that embraces

creativity, promotes empowerment, and encourages team work,

innovation, prudent risk taking, honest and open communication

and respectful iconoclasm

QUALITY : the hallmark of our internal and external outputs and

processes will be quality. this will pervade every aspect of our

functioning.

Subscription Base Of Different Service Provider in Bihar (May-

2009)

39

Service Provider SuscriberReliance Telecom 2931877AIRCEL 2877220Bharti Airtel 8159469Dishnet Wireless 1502738ABTL (IDEA) 1201417Vodafone Essar 1251331BSNL 2772670

7. 1. : Firms marketing efforts

The firm’s marketing activities are a direct attempt to reach,

inform, and persuade consumers to buy and use its

products/services. These activities are product related,

promotion, price and channel of distribution.

7. 1 .1. : Product

Product related activities include new technology, brand name,

features, design and packaging. Brand name effect is the

consumer’s perception of the role that brand name plays in the

decision making process of choosing the most preferred

product/services.

According to information integration theory proposed by Bettman

et al. (1975) in the context of product evaluations, consumers

assign importance weights and scale values (utilities) to product

attributes for which information is available at the time of

40

decision making, and then combine these weights and values

according to some rule(e.g. adding, averaging) to come up with

an evaluation.

Consumer with low product knowledge might not be able to

perform trade off contrasts among brands because these

comparisons are likely to require some minimal level of

knowledge and familiarity about brands .In contrast, consumers

with high product category knowledge might have sufficient

familiarity and expertise with the product category to perform

inference and interpretation on brands as an “enriched” quality

cue in implementing customization process.

In the mobile phone market product plays an important role to

purchasing the particular mobile phone. This is actually due to

new innovation. So consumer’s behaviour influenced toward

mobile phone products. Services are also important part for the

mobile industry. Services include price promise, Insurance,

exchange offers, and other services like work mobile abroad.

There is also a range of fixed line telephones and other fixed line

equipment such as fax machines. The consumers can opt for pay-

as-you-go or contract payments, as well as wide choice of 'value

packs' which offer bundles of text messages, picture messaging

services or airtime. The company claims that its expert sales staff

can help you to select the best value package depending on how

much you use the phone, and how you prefer to pay.

41

7. 1. 2. : Price

Prices efforts include promotional prices, discount, reduce the

price of product/services and competitor pricing. Commodity

prices in the market play a relevant role in consumer decision

making; they influence what, when, where and how much

consumer buy. Price promotion by a retailer for a particular brand

might adversely affect the sales level of competing retailer if

consumer actively switch store to take advantage of the deal.

Consumer who perceive prices more accurately are the ones who

place a higher degree of importance on them its investigate two

potential subscribers decision, using the graphic device of a

price/acceptance and a charge/acceptance function towards

mobile.

The study identified that most customers, who are willing to swap

providers, will make their decision on price first. Consumer

knowledge of price plays an important role in pricing

management since it not only determines how prices are

perceived and valued but also influenced consumers purchase

decision. Price is important factor which influence the customer

attitude towards mobile phone. At the point in time of purchase

the customer faces, first of all, initial financial, the purchase price

for the set and the fixed charges for the connection to the

network.

Another aspect at the time of purchase is the consideration of the

use charges, such as the price per call minute.There are very

42

competitive price in the market. Most of the mobile phone

companies are offering different network.

7. 1. 3. : Promotion

Advertisement, sales promotion, public relations and direct

marketing are the promotional tools.

Sales promotion consists of a wide variety of short term tactical

promotional tools aimed at generating a desired response from

customers. Sales promotion includes tools for consumer

promotion (sample, coupons, cash refund, offers, prices off,

premium, prizes, patronage rewards free trials, warranty, tie in

promotions, cross promotions, point of purchase displays and

demonstration); trade promotion ( price off, advertising and

display allowance, and free goods).

Public relation involves a variety of programs designed to

promote a company’s image or its individual product. The main

tools of PR are publications, events, news, speeches, public-

services activities, and identity media.

Direct marketing is an interactive marketing system that uses

one or more media to affect a measurable response or

transaction at any location. Electronic marketing is a part of

direct marketing. Its media include television, press and radio

advertisements.

43

MAJOR COMPETITOR

44

8. : MAJOR COMPETITOR

8. 1. : AIRTEL

“Bharti Airtel” formerly known as Bharti Tele-Ventures Limited

(BTVL) is among India's largest mobile phone and Fixed Network

operators. With more than 60 million subscriptions as of 13th

February 2008. It offers its mobile services under the Airtel brand

and is headed by Sunil Mittal. The company also provides

telephone services and Internet access over DSL in 14 circles.

The company complements its mobile, broadband & telephone

services with national and international long distance services.

The company also has a submarine cable landing station at

Chennai, which connects the submarine cable connecting

Chennai and Singapore. The company provides reliable end-to-

end data and enterprise services to the corporate customers by

leveraging its nationwide fiber optic backbone, last mile

connectivity in fixed-line and mobile circles, VSATs, ISP and

international bandwidth access through the gateways and landing

station.

Airtel is the largest cellular service provider in India in terms of

number of subscribers. Bharti Airtel owns the Airtel brand and

provides the following services under the brand name Airtel:

Mobile Services (using GSM Technology), Broadband & Telephone

45

Services (Fixed line, Internet Connectivity (DSL) and Leased Line),

Long Distance Services and Enterprise Services

(Telecommunications Consulting for corporates). Leading

international telecommunication companies such as Vodafone

and SingTel held partial stakes in Bharti Airtel.

In April 2006 Bharti Global Limited was awarded a

telecommunications license in Jersey in the Channel Islands by

the local telecommunications regulator the JCRA. In September

2006 the Office of Utility Regulation in Guernsey awarded

Guernsey Airtel with a mobile telecommunications license. In May

2007 Jersey Airtel and Guernsey Airtel announced the launch of a

relationship with Vodafone for island mobile subscribers. In July

2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900

million dollar expansion of its mobile and fixed network.[3] In

August 2007, the company announced it will be launching a

customized version of Google search engine that will provide an

'array of services' to its broadband customers.

Bharti Enterprises is a pioneer in telecom sector and the group is

widening its horizons by entering new business areas such as

insurance and retail. Bharti Enterprises has created a vantage

position for itself in the global telecommunications sector. Bharti

Airtel Limited occupies numero uno status in mobile telephony in

India while its brand 'Beetel' is the largest manufacturer and

exporter of world class telecom terminals.

Founder of Bharti Group is Sunil Mittal. In 1983, Sunil Mittal

46

entered into an agreement with Germany's Siemens to

manufacture the company's push-button telephone models for

the Indian market. In 1986, Sunil Bharti Mittal incorporated Bharti

Telecom Limited (BTL) and his company became the first in India

to offer push-button telephones, establishing the basis of Bharti

Enterprises. This first-mover advantage allowed Sunil Mittal to

expand his manufacturing capacity elsewhere in the

telecommunications market. By the early 1990s, Sunil Mittal had

also launched the country's first fax machines and its first

cordless telephones. In 1992, Sunil Mittal won a bid to build a

cellular phone network in Delhi.

In 1995, Sunil Mittal incorporated the cellular operations as Bharti

Tele-Ventures and launched service in Delhi. In 1996, cellular

service was extended to Himachal Pradesh. In 1999, Bharti

Enterprises acquired control of JT Holdings, and extended cellular

operations to Karnataka and Andhra Pradesh. In 2000, Bharti

acquired control of Skycell Communications, in Chennai. In 2001,

the company acquired control of Spice Cell in Calcutta. Bharti

Enterprises went public in 2002, and the company was listed on

Mumbai Stock Exchange and National Stock Exchange of India. In

2003, the cellular phone operations were rebranded under the

single AirTel brand. In 2004, Bharti acquired control of Hexacom

and entered Rajasthan. In 2005, Bharti extended its network to

Andaman and Nicobar. Today, Airtel is the laegest cellular service

provider in India.

47

The Company today offers mobile services in Fifteen out of 22

circles in India. As of April 30, 2003, approximately 91% of India’s

total number of mobile subscribers resided Karnataka circles.

The company provides reliable end-to-end data & enterprise

services to the corporate customers by leveraging its nationwide

fiber optic backbone, last mile connectivity in fixed-line and

mobile circles, VSATs, ISP and international bandwidth access

through our gateways and landing station.in Bharti’s existing and

proposed mobile circles, according to COAI reports. Bharti Tele-

Ventures was the first private sector operator to provide fixed-

line services in India when it commenced providing services in

the Madhya Pradesh & Chhattisgarh circle in June 1998. BTVL

also provides fixed-line services in Haryana, Delhi, Tamil Nadu

and Karnataka circles.

The company complements its mobile and fixed-line services

with national and international long distance services. The

company also has a submarine cable landing station at Chennai,

which connects the submarine cable connecting Chennai and

Singapore. The long distance and data enterprise services has

enormous support from this connectivity and facilitates us in

offering best value to our customers.

The company provides reliable end-to-end data & enterprise

services to the corporate customers by leveraging its nationwide

fiber optic backbone, last mile connectivity in fixed-line and

48

mobile circles, VSATs, ISP and international bandwidth access

through our gateways and landing station.

AirTel, India’s premier mobile service today created history by

becoming the first service provider in the country to reach the

coveted 1 million-customer mark in one mobile circle. AirTel’s

operations in Delhi, is thus the largest mobile operation in the

country and it has more than 50% market share in India’s largest

mobile territory. Taking forward AirTel’s strategic roadmap for

enhancing the service delivery experience, AirTel announced an

investment of more than Rs. 175 crore in the current financial

year. This will take AirTel’s cumulative investment in the circle to

more than Rs. 1950 crores by the end of the current financial

year. AirTel will also be implementing six sigma for superior

service deliveries.

Business and Financial Metrics

49

Total Revenue and Profit after Tax from 2003 to 2008 for

Bharti Airtel

8. 2. : IDEA

50

http://www.wikinvest.com/image/AirtelRevenue.png

Idea Cellular is a part of Aditya Birla Nuvo, a flagship company of

the Aditya Birla Group. It is a wireless telephony company

operating in various states in India. It initially started in 1995 as a

joint venture among the Tatas, Aditya Birla Group and AT&T by

merging "'Wings Cellular'" operating in Madhya Pradesh, UP

West, Rajasthan and Tata Cellular as well as Birla AT&T

Communications.Idea is a leading cellular operator, with a

subscriber base of over seven million across the country in its

eight circle operation. It controls a portfolio of India's most

attractive and mainly contiguous properties including the 11

states of Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra

Pradesh, Madhya Pradesh, Chattisgarh, Uttar Pradesh (West),

Uttaranchal, Haryana, Kerala and Delhi (inclusive of NCR).

Having operations in four of the five largest cellular circles in

India, Idea is the market leader in the Maharashtra and Goa;

Uttar Pradesh (West) and Madhya Pradesh and Chattisgarh circles

in terms of number of subscribers. Idea's Delhi circle is also the

fastest-growing fourth operator in the country, which is an

achievement in itself and showcases customer confidence of a

high degree. Idea's footprint currently covers approximately 45

per cent of India's population and over 50 per cent of the

potential telecom market. Idea covers over 1000 towns along

with a total highway connectivity of over 10,000 kilometres.

Today, there are over 350 direct customer service outlets and a

well-entrenched network of over 48,000 retailers and dealers

across the country. Each circle with its own dedicated call centre

51

http://en.wikipedia.org/wiki/AT%26T

http://en.wikipedia.org/wiki/Aditya_Birla_Group

http://en.wikipedia.org/wiki/Tata_Group

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Telephony

and a single call resolution approach towards the customer is a

unique effort provided by any operator.

Idea offers roaming across 560 operators in India and across the

world. With a clear focus on providing unique, distinct innovative

and tremendously valuable services to the subscribers, Idea

embarked upon an initiative to set up a VAS (value-added

services) factory within the company, which conceptualizes and

provides tailor-made value-added services. As a leader in value

added services, innovation is central to the VAS factory. Idea was

the first and only company to launch music messaging with

'Cellular Jockey' to all its subscribers. Idea has launched a voice

portal with 'Say IDEA'. Idea also launched Global SMS for the first

time in the country, which allows the users to send and receive

SMS from over 540 networks and 170 countries across

technology platforms like GSM, CDMA, TDMA and satellite

phones.

A frontrunner in introducing revolutionary tariff plans, Idea has

the distinction of offering the most customer friendly and

competitive pre-paid offerings, for the first time in India, with 'Eco

Talk', 'Flexi-charge', 'Super Power' and other segmented

offerings. 'Lifetime Idea' is the first and only loyalty program, for

prepaid customers, introduced by a cellular brand. 'Pay Easy' is

bill payment through the effective use of the pre-paid channel.

Idea is the only operator in the world to launch this service. It is

also the only cellular operator which has launched a complete

suite of mobile e-mail services. Idea offers a wide range of

52

cellular services and products. Its post-paid and pre-paid services

are supported by a variety of package plans to suit the needs of

different customers:

M-coupon — Electronic discount coupons that customers can get on their mobiles while they shopVoice courier — Idea subscribers can send messages in their own voice to select GSM subscribers all across the country and to any land line or cellular subscriber in the US and Canada at a fraction of STD and ISD rates. M-chat — An instant-messaging service that enables subscribers to chat with their friends in MSN, Yahoo and ICQ from Idea mobile (using the SMS feature). Idea's M-chat enables subscribers to chat with all the three chat rooms, MSN, Yahoo and ICQ, without having to tag along a laptop or computer with net connection.SMS in nine vernacular languages — Hindi, Gujarati, Marathi, Bengali, Telugu, Tamil, Malayalam, Kannada and Punjabi, in addition to English. GPRS / MMS — Idea Delhi was the first mobile phone operator to launch GPRS services in Delhi. It's 3G-compatible network supports General Packet Radio Service (GPRS), which allows subscribers to access Internet websites and information portals on Idea mobile.

Customer service and innovation are the drivers of this cellular

brand. Idea was the first company in the country to launch GPRS

in November 2002. It showcased EDGE (Enhanced Data Rates for

GSM Evolution) in Delhi, in July 2004. With EDGE (a 3G

technology), subscribers can enjoy live television with a data

download rate of over 160 kbps. GPRS is available on all its

networks, for both pre-paid and post-paid customers. Idea

subscribers also have a richer experience while watching movie

previews, multimedia messages with video attachments, web-

infotainment, high-speed video downloads, java game downloads

53

and other Internet-based multi-media experiences on their EDGE-

enabled mobile phones.

In keeping with the promise of providing world class products and

services to its customers, Idea has added another first to its list

by announcing the launch of its new VAS innovation —

Background Tones.

Idea has also introduced a convenient ambulance service for its

customers of Indore. In another revolutionary and unprecedented

move, Idea has announced the, "Idea Girls' Best Friend Offer", a

once-in-a-lifetime opportunity to own a free dazzling real

diamond pendant with every new postpaid connection on a plan

of Rs. 150 and above. The latest feather in the Idea cap is

winning the GSM Association Award for Bill Flash. Idea thus

became the first cellular operator in India to win an award on an

international platform. The GSM Association Awards are

recognized as the Oscars of the GSM mobile

industry. Idea is the only Indian operator to have won an award at

this

forum since the inception. The award was presented for Idea's

unique "Bill Flash" service in the "Best Billing or Customer Care

Solution". It is indeed with pleasure that we proudly announce

that Bill Flash has been created by our in-house R&D Team.

Every company needs to analyse the products that are major

contributors of revenue and profits. While most manufacturing

companies look for the contribution from each product segment,

the service providing telecom companies search for the same

54

nuance in the average revenue per user (ARPU), which is

indicative of the revenues that these companies generate from

each of its service offering like cellular mobile services, dialup or

broadband services (of course, the measure for broadband is

average revenue per line). In this article, we do a brief study on

ARPUs as also analyse the real performance of Idea Cellular on

this front.

8. 3. : BSNL (Bharat

Sanchar Nigam Ltd)

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's

7th largest Telecommunications Company providing

comprehensive range of telecom services in India: Wireline,

CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service,

MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of

five years it has become one of the largest public sector unit in

India. BSNL has installed Quality Telecom Network in the country

and now focusing on improving it, expanding the network,

introducing new telecom services with ICT applications in villages

and wining customer's confidence. Today, it has about 47.3

million line basic telephone capacity, 4 million WLL

capacity, 20.1 Million GSM Capacity, more than 37382

fixed exchanges, 18000 BTS, 287 Satellite Stations,

480196 Rkm of OFC Cable, 63730 Rkm of Microwave

Network connecting 602 Districts, 7330 cities/towns and

5.5 Lakhs villages.

55

BSNL is the only service provider, making focused efforts and

planned initiatives to bridge the Rural-Urban Digital Divide ICT

sector. In fact there is no telecom operator in the country to beat its

reach with its wide network giving services in every nook & corner

of country and operates across India except Delhi & Mumbai.

Whether it is inaccessible areas of Siachen glacier and North-

eastern region of the country. BSNL serves its customers with its

wide bouquet of telecom services. BSNL is numero uno operator of

India in all services in its license area. The company offers vide

ranging & most transparent tariff schemes designed to suite every

customer.

BSNL cellular service, CellOne, has more than 17.8 million cellular

customers, garnering 24 percent of all mobile users as its

subscribers. That means that almost every fourth mobile user in

the country has a BSNL connection. In basic services, BSNL is

miles ahead of its rivals, with 35.1 million Basic Phone

subscribers i.e. 85 per cent share of the subscriber base and 92

percent share in revenue terms.BSNL has more than 2.5 million

WLL subscribers and 2.5 million Internet Customers who access

Internet through various modes viz. Dial-up, Leased Line, DIAS,

Account Less Internet(CLI). BSNL has been adjudged as the

NUMBER ONE ISP in the country. BSNL has set up a world class

multi-gigabit, multi-protocol convergent IP infrastructure that

provides convergent services like voice, data and video through

the same Backbone and Broadband Access Network. At present

there are 0.6 million Data Onebroadband customers.

The company has vast experience in Planning, Installation,

network integration and Maintenance of Switching &

56

Transmission Networks and also has a world class ISO 9000

certified Telecom Training Institute.

Scaling new heights of success, the present turnover of BSNL

is more than Rs.351,820 million (US $ 8 billion) with net

profit to the tune of Rs.99,390 million (US $ 2.26 billion)

for last financial year. The infrastructure asset on telephone

alone is worth about Rs.630,000 million (US $ 14.37 billion). BSNL

plans to expand its customer base from present 47 millions lines

to 125 million lines by December 2007 and infrastructure

investment plan to the tune of Rs. 733 crores (US$ 16.67 million)

in the next three years. The turnover, nationwide coverage,

reach, comprehensive range of telecom services and the desire

to excel has made BSNL the No. 1 Telecom Company of India.

8. 4. : VODAFONE

Vodafone Essar is the Indian subsidiary of Vodafone Group and

commenced operations in 1994 when its predecessor Hutchison

Telecom acquired the cellular license for Mumbai. The company

now has operations across the country with over 74.08 million

customers**. Over the years, Vodafone Essar, under the Hutch

brand, has been named the ‘Most Respected Telecom Company’,

the ‘Best Mobile Service in the country’ and the ‘Most Creative

and Most Effective Advertiser of the Year’. Vodafone Group is

the world’s leading international mobile communications

corporation. It currently has equity interests in 27 countries

57

across 5 continents and 40 partner networks with over 303

million proportionate customers worldwide. The Essar Group is

Vodafone’s principal partner in India. The Essar Group is a

diversified business corporation with a balanced portfolio of

assets in the manufacturing and services sectors of Steel, Energy,

Power, Communications, Shipping Ports & Logistics, and Projects.

Essar employs more than 50,000 people across offices in Asia,

Africa, Europe and the Americas.

8. 5. : RELIANCE

The Late Dhirubhai Ambani dreamt of a digital India — an India

where the common man would have access to affordable means

of information and communication. Dhirubhai, who single-

handedly built India’s largest private sector company virtually

from scratch, had stated as early as 1999: “Make the tools of

information and communication available to people at an

affordable cost. They will overcome the handicaps of illiteracy

and lack of mobility.”

58

It was with this belief in mind that Reliance Communications

(formerly Reliance Infocomm) started laying 60,000 route

kilometres of a pan-India fibre optic backbone. This backbone was

commissioned on 28 December 2002, the auspicious occasion of

Dhirubhai’s 70th birthday, though sadly after his unexpected

demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity,

integrated (both wireless and wireline) and convergent (voice,

data and video) digital network. It is capable of delivering a range

of services spanning the entire infocomm (information and

communication) value chain, including infrastructure and services

— for enterprises as well as individuals, applications, and

consulting.

Today, Reliance Communications is revolutionising the way India

communicates and networks, truly bringing about a new way of

life.

59

METHODOLOGY

60

9. : METHODOLOGY

“Marketing research is the systematic and objective identification

collection, analysis, dissemination and use of information for the

purpose of improving, recognizing and reacting to marketing

opportunities and problem”

During the course of conducting the study the information were

gathered mainly through the primary sources.

Conducting field survey by talking to consumer and also to

retailer who is dealing with SIM cards and recharge voucher and

the methodology used in the survey was personal observation ,

experimentation and interview with the retailer with the help of

schedule.

Simple random Sampling

To consider the research aim the Simple Random is used to

research the consumer attitude & behaviour towards cellular

services .

Simple random sampling is an approach in which each population

member, and thus each possible sample, has an equal probability

of being selected.

61

9.1. : Sampling size :

For the Customer:-

Control Characteristic

Population Composition

Sex: Male 67Female 33

Age: 15-25 2525-35 2535-45 2545 and above 25

Note: Sample unit have been taking into confederation the

people who are using pre paid service only.

For the Retailer:-

Control Characteristic

Population Composition

Sex: Male 90Female 10

Age: 15-25 1525-35 4035-45 3045 and above 15

62

9.2. : Collect the data :

The research designer has a wide variety of methods to consider,

either singly or in combination.

Data collection methods

Secondary sources

Information system

Databanks of other organisation

Syndicate services

A search for secondary data generally follows the statement of

objectives. Secondary information is any data originally

generated for some purpose other than the present research

objective. It includes findings based on research done by outside

organisation; data generated in-house for earlier study, and even

customer information collected by the firm’s sales or credit

department.

The secondary data has been already collected from annual

reports.

Primary sources

Qualitative research

Quantitative research

63

The primary research consists of quantitative and qualitative

research. Both of these have various techniques to collect the

data for research. It is the nature of the research that determines

what method should be adopted.

Research findings and conclusion can be a valuable sources of

information that can enhance the decision making process. While

research studies do not actually solve the problems or make

decision, they can guide information that can guide the decision

and action of management.

Quantitative have universal applicability, but qualitative methods

can be used to determine the plausibility of quantitative

research.

Qualitative Data

The purpose of qualitative research is to find out what is in a

consumer’s mind. It is done to access and also get a rough idea

about the person’s perspective. Feelings thoughts, intentions and

behavior that can be trace through this research.

Qualitative methodology provides powerful tools for research in

management and business administration.

By qualitative research consumer’s feeling and attitude can be

examined through interview by face to face, over the phone, mail

or via e-mail. Qualitative research however is the method by

64

which an individual will attempt to gather data to quantify a

situation or topic that may exist; it seeks to gain an insight rather

than a statistical analysis. The methods of qualitative research

include open/semi structured interviews, focus groups and

general observation.

Quantitative Data

The ideals of quantitative research call for procedures that are

public, that use precise definitions, that use objectivity-seeking

methods for data collection and analysis, that are replicable so

that findings can be confirmed or disconfirmed, and that are

systematic and cumulative—all resulting in knowledge useful for

explaining, predicting, and controlling the effects of teaching on

student outcomes .

65

QUESTIONNAIRE

Customer Questionnaire

Retailer Questionnaire

66

10.1. : Customer Questionnaire:

Section A (Personal Details)

Gender :

Male □ Female □

Age

15-20 □ 21-25 □ 26-30

□

31-35 □ 36-45 □ 46 and above □

Qualification :

Secondary school □ University Graduate

□

Post Graduate □ Others □

Profession :

Professional □ Business Class □ Official

□

Self Employed □ Students □ Unemployed □

Section B (Purchasing Behavior / Habits)

Q.1. Which Prepaid Cellular services you are using?

(a) Aircel □ (b) Airtel □ (c) BSNL □

(d) Idea □ (e) MTS □ (f) Reliance

□

(g) Vodafone □ (h) Tata Indicom□

67

Q.2.Would you like to change your service provider?

(a) Yes □ (b) No □

68

Q.3. Why do you want to change your Mobile

product/service?

(a)New technology □ (b) Change Tariff □

(c) Change network □ (d) Lost □

(e) Others (please specify)…………

Q.4. To which Prepaid Cellular services you want to move

on?



□


Q.5.Which of the following do you use other then calling?

(a) SMS □ (b) MMS □ (c) Internet

□

(d) Games □ (e) Wall Paper □ (f) Downloading □

(g) Others □

Q.6. From where you Get your recharge done or buy

recharge coupons.

(a) Retailer □ (b) Online

□

Q.7. you prefer to have easy recharge or buy recharge

coupons?

(a) Easy recharge □ (b) Recharge coupon

□

69

Q.8. where did you get information about the Retailer?

(a) News paper □ (b) Magazine □ (c) TV Ad □

(d) Friends □ (e) Colleagues □ (f) Online □

(g) Leaflet □ (h) Phone □ (i) Others □

Q.9. Where did you get the information about the

product/service?

(a) News paper □ (b) Magazine □ (c) TV Ad

□

(d) Friend’s □ (e) Colleagues □ (f) online

□

(g) Leaflet □ (h) Retailer □ (i) others

Q.10.Why has you chosen your service provider?

(a) Reference □ (b) Prior experience □

(c) Network □ (d) Provide clear voice

□

(e) Excellent service □ (f) Price promise □

(g) Availability □ (h) others □

Q.11. which cellular network service is best?



□


Q.12. which cellular service has best voice clarity?

70



□


Q.13. which cellular service offers you cheapest call

charge?



□


71

Q.14. which cellular service offers you best customer support?



□


72

10.2. : Retailer Questionnaire:


Gender :

Male □ Female □

Age :

15-20 □ 21-25 □ 26-30

□

31-35 □ 36-45 □ 46 and

above □

Qualification:


□


Section B (Retailer View about the cellular services)

Q1 which prepaid cellular service you offers?



□


Q2 which company is giving best performance?


73


□


74

Q3 Which service provider advertisement is more

attractive?



□


Q.4. Which brand offers best sell margin?



□


Q.5. Are FOs cooperative with you?

(a) Yes □ (b) No □

Q.6. Are you getting current information regarding the

brand Aircel properly?

(a) Yes □ (b) No □

Q.7. How much you are satisfied with our service?

(a) Satisfied □ (b) No Satisfied □

Q.8.Which cellular service provider is getting the highest

convergence in term of activation?


75


□


76

Q.9. How many times FOs visits you in a week?

(a) 1 - 2 times □ (b) 2 - 4 times □ (c) 4 - 6 times □

(d) 7 times □ (e) never visit □

Q.10. Does FOs come and arrange the promotion material

such as posters, banner leaflets etc. on their own?

(a) Yes □ (b) No □

77

DATA ANALYSIS &

INTERPRETATION

78

11. : DATA ANALYSIS & INTERPRETATION

11.1. Consumer Questionnaire: Section A

(Personal Details)

Gender:

Male □ Female □

Male, 67

Female, 33

Age

15-20 □ 21-25 □ 26-30

□

31-35 □ 36-45 □ 46 and above □

0

5

10

15

20

25

Age

No. of people 25 25 25 25

15-25 25-35 35-45 45 and above

\

79

Qualification :


□


0

10

20

30

40

Qualification:


Secondary University Post Graduate Others

\

Profession :

Professional □ Business Class □ Official

□ Self Employed □ Students □

80

Unemployed □

0

5

10

15

20

25

30

35

Profession:

No. of people 20 35 15 7 15 8

Professional

Business Class

OfficialSelf

EmployedStudents

Unemployed

\

81

Section B (Purchasing Behavior / Habits)

Q.1. Which Prepaid Cellular services you are using?



□


0

5

10

15

20

25

30

Which Prepaid Cellular services you are using?

Respondent 20 27 4 6 3 18 16 6

Aircel Airtel BSNL Idea MTSRelianc

eTata

IndicomVodafo

ne

Inference: In term of performance Aritel is leading but Aircel

has hit the 2nd place followed by Reliance & Tata Indicom.

Q.2.Would you like to change your service provider?

(a) Yes □ (b) No □

Would you like to change your service provider?

Yes, 65

No, 35

82

Q.3. Why do you want to change your Mobile

product/service?

(a) New technology □ (b) Change Tariff

□

(c) Change network □ (d) Lost □

(e) Others □

0

2

4

6

8

10

12

Why do you want to change your Mobile product/service?

Respondent 5 10 12 4 4

New Technolog

Change Tariff

Change Network

Lost Others

Q.4. To which Prepaid Cellular services you want to

move on?



□


Q.5.Which of the following do you use other then

calling?

83

(a) SMS □ (b) MMS □ (c) Internet

□

(d) Games □ (e) Wall Paper □ (f) Downloading □

(g) Others □

84

Q.6. From where you Get your recharge done or buy

recharge coupons.

(a) Retailer □ (b) Online

□

Q.7. you prefer to have easy recharge or buy recharge

coupons?

(a) Easy recharge □ (b) Recharge coupon

□

Q.8. where did you get information about the

Retailer?

(a) News paper □ (b) Magazine □ (c) TV Ad □

(d) Friends □ (e) Colleagues □ (f) Online □

(g) Leaflet □ (h) Phone □ (i) Others □

85

86

Q.9. Where did you get the information about the

product/service?

(a)News paper □ (b) Magazine □ (c) TV Ad □

(d) Friend’s □ (e) Colleagues □ (f) online

□

(g) Leaflet □ (h) Retailer □ (i) others

Q.10.Why has you chosen your service provider?

(a) Reference □ (b) Prior experience □

(c) Network □ (d) Provide clear voice

□

(e) Excellent service □ (f) Price promise □

(g) Availability □ (h)others □

Q.11. which cellular network service is best?



□


Q.12. which cellular service has best voice clarity?



□


87

Q.13. which cellular service offers you cheapest call

charge?



□


88

Q.14. which cellular service offers you best customer

support?



□


89

11.2. : Retailer Questionnaire:


Gender :

Male □ Female □

Male, 90

Female, 10

Age :

15-20 □ 21-25 □ 26-30

□

31-35 □ 36-45 □ 46 and above □

0

10

20

30

40

Age


15-25 25-35 35-45 45 and above

\

90

Qualification:

Secondary school □ University Graduate □


0

10

20

30

40

50

Qualification:


Secondary University Post Graduate Others

\

Section B (Retailer View about the cellular

services)

Q1 which prepaid cellular service you offers?



□


Brands StatusPercentag

eAircel Airtel BSNL Idea MTS Reliance Smart Tata Indicom Vodafone All 100 100%

Total 100 100%

91

Inference: I found that retailers deals with all the service

providers.

Q2 which company is giving best performance?



□


0

5

10

15

20

25

Best Performance

Respondent 17 24 4 10 4 16 15 10


eTata

IndicomVodafon

e

\

Inference: In term of performance Aritel is leading but Aircel

has hit the 2nd place followed by Reliance & Tata Indicom.

Q3 Which service provider advertisement is more

attractive?



□


92

0

5

10

15

20

25

30

Advertisement Attractiveness:

Respondent 15 30 4 10 12 7 5 17


eTata

IndicomVodafon

e

\

Inference: In term of visibility Aircel is in 3rd position which

should be taken care of.

93

Q.4. Which brand offers best sell margin?



□


0

5

10

15

20

25

Maximum Margin

Respondent 22 15 4 15 12 9 8 15


eTata

IndicomVodafon

e

\

Inference: In term of giving maximum margin or value to the

retailers Aircel is at 1st place.

Q.5. Are FOs cooperative with you?

(a) Yes □ (b) No □

Cooperative FOs

Yes, 82

N0, 18

Inference: Retailers are satisfied with our cooperative FOs.

94

Q.6. Are you getting current information regarding

the brand Aircel properly?

(a) Yes □ (b) No □

Proper Information about "Aircel"

Yes, 65

N0, 35

Inference: The information level is not yet reached to the

maximum level only 65% of the retailers are getting current

information.

Q.7. How much you are satisfied with our service?

(a) Satisfied □ (b) No Satisfied □

Satisfied with "Aircel" service

Satisfied, 85

Not Satisfied, 15

Inference: Satisfaction level with the Retailers are quite good,

as 85 out of 100 retailers said that service is satisfactory.

95

Q.8.Which cellular service provider is getting the

highest convergence in term of activation?



□


0

5

10

15

20

Highest Selling Cellular Service Provider

Respondent 20 18 4 15 12 8 8 15


eTata

IndicomVodafon

e

\

Inference: Aircel is converting the maximum Activation’s

among all.

Q.9. How many times FOs visits you in a week?

(a) 1 - 2 times □ (b) 2 - 4 times □ (c) 4 - 6 times □

(d) 7 times □ (e) never visit □

96

FOs Visits Per Week

0 5 10 15 20 25 30 35 40 45

No Visit

1 - 2 Visits

2 - 4 Visits

4 - 6 Visits

7 times and above

Respondent 0 20 30 40 10

No Visit 1 - 2 Visits 2 - 4 Visits 4 - 6 Visits 7 times and above

\

Inference: 40 % retail outlets has been visited by FOs 4-6 times

every week.

Q.10. Does FOs come and arrange the promotion

material such as posters, banner leaflets etc. on their

own?

(a) Yes □ (b) No □

Arrangement of Promotion Material (posters, banner leaflets) by FOs

Yes, 40

No, 60

Inference: In 60% of retail outlets FOs don’t arrange the

Visibility material.

97

RECOMMENDATION

98

12. : RECOMMENDATION

After analyzing the current practices of the company, consumer

response from the survey and interview with company staff the

following recommendation is the best to change attitude of

customers and attract larger number of customers

Increase retailer store in rural area

The Company has large number of strengths as discussed in

industry analysis. The most potential strength is strong

distribution channel on high street. Rural subscription is

increasing in last few years. The company is already planning to

improve this strength; this will be the best idea for making the

positive belief to the customers and help to increase the existing

strength. The company can capture more new customers by

99

opening retail stores in small places and advertise in the

adjoining area.

Attract through promotion

TV, news paper, magazines ads are more effective then others as

identified from the consumer and company response That

companies make their 4P’s strategy according to consumer

attitude towards product, promotion, price and placement. The

company should spend more on these media instead of leaflets

and radio ads because consumers attitude towards these are

positive then others. Company can also promote the business

through changing brand belief & offering price promise.

Educate customers

After analyzing the customer response and company practices, it

is identified that consumers are changing mobile sets very often

due to high speed of technology innovation. The company should

encourage the existing customers and others to adopt the new

technology and educate them for Product features and benefits.

It has been identified that some of the customers do not know

about the attribute. Demonstration and trial is the effective

source to educate about the new technology. This will directly

influence the consumer attitude towards company.

Training to retailer staff

100

It has been identified that some of the customers are not

satisfied with the staff help to choose the right product and

services. Company should give the required training to retail staff

about product knowledge and competitor offerings. Make sure

the staff is advising right product and services at the first time

according to consumer requirement. This will help the customers

to evaluate the purchase information.

Obtain customers feedback

Customers are influenced by reference group as discussed in

analysis and it is also identified by the primary research.

Moreover “customer have more power then ever before”.

“Consumers have access more information than ever before”.

Company should take a feedback from the existing customers

after a regular interval and resolve the problem if any. To retain

customers it is necessary to obtain consumer feedback and

offered the product and services according to their feedback.

If they will be satisfied then they come to repeat purchase and

moreover they will give the reference to others for buying

product from the company. This would be also help to make

brand loyalty of the company.

101

CONCLUSION

102

13. : CONCLUSION

To consider the research aim and objectives, researcher

identified that random sampling strategy will be the best for

research for collecting the primary data collection.

The research will be surveyed among 100 mobile phone users

living in chapra area.

The secondary data has been collected from the text books,

electronic journals and company annual reports.

103

The value of information would be importance of the decision

making in development for making marketing strategy for to

increase number of customers.

104

LIMITATION

14. : LIMITATION

Due to financial situation of the research, the time frame for

completion and the sampling constraints the following are

identified:

Financial constraints:

Financial constraints meant that the study could not be

conducted on a State scale.

105

Time constraints:

The study has strict deadline which had to be met in order to fulfil

the completion requirement. If there were no time limit and

financial constraints, or time frame in which to complete the

study, the researcher would done a national level survey in order

to get a more effective sample of the population.

106

REFERENCES

107

15. : REFERENCES

For the completion of the project report references are being

made mostly from the corporate office and from books and

different websites:

BOOKS:

1. Philip Kotler , Marketing Management

2. Marketing Research, Grun & Tull

3. Marketing Research, Aaker Kumar Day

4. Marketing Research, Seymor

5. Business India, Business World Etc

INTERNET SITES:

1. www.aircel.co.in

108

Project Report on Study of Consumer Behaviour and Attitude Towards the Cellular Services With Refrence to Aircel

Documents

study of consumer attitude

study of consumer behaviour

management of aircel

consumer attitude formation

indias aircel

model of consumer decision

degree emotional consumer

research project report