scope & significance of airtel money in kerala

8/13/2019 Scope & Significance of Airtel Money in Kerala

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Scope & Significance of AirtelMoney in Kerala Market

JITHESH J

211062

FMG21-B

2/4/2014 1FORE School of Management


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Introduction Airtel money launched in late February 2012.

It can be considered as a mobile wallet where we canstore money and can be used for utility services

Airtel money recharges are available in the retailer shopsand can do online recharging.

Could not capitalise the even in the absence of any directcompetition from other network providers.

First of this kind was launched by Nokia as Nokia Money,

but failed due to lack of network. No direct competition from other networks as of now.

A project on the significance of Airtel money in Keralamarket.

2/4/2014 FORE School of Management 2


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Product Features



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Objectives

The primary objective of this project is to findout the scope and significance of Airtel money inKerala market.

The secondary objectives are:

To get feedback from the customers as well asretailers

To study and understand the market conditions

for m-commerce in Kerala market. To understand the reasons for the low

penetration of Airtel money in rural areas.



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Literature Review

Mobile operators and banks are co-operating fora mobile handset based financial service.

In an interview with the CEO of Airtel Manoj

Kohli, according to him next 100 millioncustomers will be from rural and semi-urbanareas. He observes a great future for airtel moneyin these areas.

Airtel in association with Infosys technologieslaunched the mobile wallet service using themobile commerce platform WalletEdge



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Methodology

Research Design: Descriptive research was conducted tocollect data and analysis in this project. A questionnairesurvey was conducted among customers as well as retailers.

Data collection methods:

Primary source: structured questionnaire survey wasconducted to get response from customers and retailers

Secondary source: Secondary data was collected fromarticles, journals and internet, mainly company website.

Sampling:

25 samples of retailers and customers from each of urban,suburban and rural areas were taken for sampling.



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Methodology cont. Rural: Rural areas of Pathanamthitta and Alappuzha

district Semi-urban: Calicut market

Urban: Eranakulam market

Field work:

Field work was done in 3 phases in 3 markets.

During the field work, questionnaire was filled by thecustomers as well as retailers and customer

interaction activity for giving awareness about airtelmoney was done.



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Analysis


Customer variables

Product awareness

Level of satisfaction with the product

Satisfaction with the network coverage

User friendliness

Offers in Airtel money

Retailer variables

Product awareness

Level of satisfaction with the margin

User friendliness

Distribution efficiency

Other benefits and support

0.4

0.2

0.1

0.050.15

Weightage given for customer

variablesProduct awareness

Level of satisfaction with the

product

Level of satisfaction with the

network coverage

User friendliness

Offers throgh airtel money

0.2

0.5

0.1

0.05 0.15

Weightage given for Retailer

VariablesProduct awareness

Level of satisfaction with

the margin


User friendliness



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Analysis of retailer variables


3

9

7

4

2

0

2

10

3

10

0

2

5

7

11

0

2

4

6

8

10

12

1 2 3 4 5

No

.ofrespondents

Level of awareness

Rural

Semi-urban

Urban

Rate of awareness Rural Semi-urban Urban

Total respondents 25 25 25

Weighted average score 2.72 3.84 4.08


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Analysis of retailer variables cont.


3

8

6

3

5

7

12

3

2 1

15

5

4

1

00

2

4

6

8

10

12

14

16

1 2 3 4 5

No.

ofrespondents

Level of satisfaction with the margin

Rural

Semi-urban

Urban

Rate of satisfaction with the

margin

Rural Semi-urban Urban

Total no. of respondents 25 25 25



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1

4

13

3

4

0

3

9

6

7

0

1

8

5

11

0

2

4

6

8

10

12

14

1 2 3 4 5

No.

ofrespondents


Rural

Semi-urban

Urban

Distribution efficiency Rural Semi-urban Urban




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3

11

8

1

2

1

2

5

6

11

1

2 2

6

14

0

2

4

6

8

10

12

14

16

1 2 3 4 5

No.

ofrespondents

Usability

Rural

Semi-urban

Urban

Usability Rural Semi-urban Urban

Total no. Of respondents 25 25 25



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1

4

15

2

3

2

4

9

3

7

2

8

11

3

1

0

2

4

6

8

10

12

14

16

1 2 3 4 5

No

ofrespondents


Rural

Semi-urban

Urban

Other benefits and support Rural Semi-urban Urban




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Analysis of customer variables


1

9

11

3

1

0

3

6

7

9

0

1

5

7

12

0

2

4

6

8

10

12

14

1 2 3 4 5

No.

ofrespondents

Level of awareness

Rural

Semi-urban

Urban

Rate of awareness Rural Semi-urban Urban




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Analysis of customer variables cont.


5

2

9

7

2

3

7

8

5

2

5

7

8

2

3

0

1

2

3

4

5

6

7

8

9

10

1 2 3 4 5

No.

ofrespondents

Level of satisfaction with the product

Rural

Semi-urban

Urban

Level of satisfaction Rural Semi-urban Urban




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6

10

7

2

00

2

9 9

5

0

2

4

8

11

0

2

4

6

8

10

12

1 2 3 4 5

No.

ofrespondents

Level of satisfaction with the network coverage

Rural

Semi-urban

Urban

Network coverage Rural Semi-urba Urban




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1

7

10

3

4

1

3

6

11

4

0

2

8

7

8

0

2

4

6

8

10

12

1 2 3 4 5

No.

ofrespondents

Level of satisfaction with the user interface

Rural

Semi-urban

Urban

Usability Rural Semi-urban Urban




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0

2

10

6

7

2

6

5

7

5

2

7

11

2

3

0

2

4

6

8

10

12

1 2 3 4 5

No.

ofrespondents

Level of satisfaction with the offers through airtel money

Rural

Semi-urban

Urban

Level of satisfaction with

the offers through airtel

money

Rural Semi-urban Urban




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Calculations


For retailers:

1) Rural region:Percentage score

= (0.20*2.72)+(0.5*2.96)+(0.1*3.2)+(0.05*2.52)+(0.15*2.96)

= 2.914

Converting this into percentage score = 58.28%

2) Suburban Region:Percentage score

= (0.20*3.84)+(0.5*2.12)+(0.1*3.68)+(0.05*3.96)+(0.15*3.36)

= 2.98


3) Urban region:Percentage score

= (0.20*4.08)+(0.5*1.64)+(0.1*4.04)+(0.05*4.2)+(0.15*2.92)

= 2.688



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Calculations cont.

For customers:1) Rural region:

Percentage score

= (0.4*2.68)+(0.2*2.96)+(0.1*2.5)+(0.15*3.08)+(0.15*3.72)

= 2.934


2) Suburban Region:Percentage score

= (0.4*3.88)+(0.2*2.84)+(0.1*3.68)+(0.15*3.56)+(0.15*3.28)

= 3.514


3) Urban region:Percentage score

= (0.4*4.2)+(0.2*2.24)+(0.1*4.12)+(0.15*3.84)+(0.15*2.88)

= 3.548




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RESULTS & DISCUSSION

The percentage scores signifies the scope of Airtel money in

Kerala market.

Score of retailers in all the regions are less than 60%

Score of customers in rural area is slightly less than 60% while inboth urban and suburban region, its slightly above 70%

Suggestions and feedbacks from both retailers and customers

were taken for improvement of the product.

Lot of scope for improvement in rural areas as customersreacted very positively to survey taken .



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CONCLUSIONS

Airtel money is a third generation

product and people like to do mobilecommerce without the use of internet.

The product was launched withoutproper market research.

Lack of proper awareness campaignsamong customers as well as retailers.

Retailers are largely dissatisfied withthe way, the product is being carried

out in all regions.

Retailers want better margin if they areexpected to promote Airtel money.

Customers ready to switch from thetraditional method to Airtel money, if itoffers better options than the existing

ones.



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Recommendations

To advertise it more effectively through TV ads, radio ads for rural customers and

increase the visibility by putting flex boards and in retail shops.

Increase the margin for retailers by about 1% at least from 0.5%.

Cut the transaction cost of banking through airtel money to 0.5% from 1%.

Do some promotional activities for airtel money that will encourage retailers topromote airtel money.

Do some promotional activities for airtel money that will encourage retailers topromote airtel money.

Give on the spot commission to retailers and make them clear about the commissionstructure.

Do some promotional activities based on some shopping malls and make tie ups withthe retail shops in those malls, for airtel money shopping.



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Recommendations cont.

Improve the usability of airtel money so that everyone can use it.

Improve the network coverage, especially in rural areas.

Make it available, the options available in airtel money atleast in urban areas, ifoffered.

Make tie ups with PVR and other film distribution networks to supply their movietickets through airtel money. In rural areas, in most of the theatres, online

booking of tickets is not available; airtel money can take advantage of thisopportunity.

Give offers for shopping through airtel money so that, customers who are lookingfor discounts will prefer switching to airtel if not, and start using airtel money.



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Recommendations cont.Give free credits to people who are doing airtel money shopping on the basis of the amount ofmoney spent on airtel money recharge.

Settle the claims of retailers in time, which will make the relationships with the retailersstronger.

Start airtel money counters in major shopping centres throughout and do heavy promotionbefore the competition catches on from Vodafone and Idea Cellular ltd.

Make the options available in local languages of all areas so that those who cant follow Englishalso can use it conveniently.

Take regular feedbacks from retailers, customers, FSEs and airtel money promoters forcontinuous improvement.



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LIMITATIONS

The major limitation was the

time. The area of research wasthe entire Kerala market and

research was conducted one ofeach rural, suburban and urban

area because of the time

limitation.

The second limitation was thecredibility of the data given by

the retailers.

Inherent limitation of the

secondary data; this study istotally based on the current

market situation and using littleprimary data.

The sample size taken was only25 from each region because of

the time limitation



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REFERENCES 2012, T. E. (2012). Banks go mobile. Business Asia.

Bharti Airtel Limited. (31 Jul 2012). Marketline.

Telecom to Lifestyle. (2012). bt current.

http://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=

Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyaccessed on April 12th

http://trai.gov.in/accessed on may 20th

http://www.businessreviewindia.in/technology/softwar

e/-telecom-industry--indias-success-storyaccessed onmay 23rd

http://en.wikipedia.org/wiki/Bharti_Airtelaccessed onApril 11

http://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://trai.gov.in/http://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://www.businessreviewindia.in/technology/software/-telecom-industry--indias-success-storyhttp://trai.gov.in/http://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Moneyhttp://www.airtel.in/money/registration.html?utm_source=Google_Search&utm_medium=CPC&utm_content=Airtel_Money_Sept_Text_Ad_1&utm_campaign=Airtel_Money


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scope & significance of airtel money in kerala

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