study of postpaid consumers’

“STUDY OF POSTPAID CONSUMERS’ BUYING BEHAVIOR”

&“COMPARATIVE STUDY OF BUSINESS MODELS OF

TELECOM & TRADITIONAL RETAIL OUTLETS”

SUMMER PROJECT BY

1

ACKNOWLEDGEMENT

This present piece of work owes its existence to many persons without whose help it

would not have been possible to complete the project. First of all I would like to thank my

project guides Mr Pallab Majumder and Mr. Manas Senapati of Vodafone- Essar Spacetel

Ltd for their valuable guidance, suggestions and constructive criticism.

I would specially like to thank Mr. Manas Senapati for his involvement and constant

guidance in the project. It was a pleasurable experience for me to work under his able

guidance in culling relevant information for preparation of this project and enriching my

overall knowledge on telecom industry.

I would like to thank all my respondents for sparing much of their valuable time for filling

the questionnaire and sharing their views, without which this project would have never

been completed.

I express my sincere gratitude to my faculty guides Prof. Jogendra Nayak and Prof.

Siddharth Rout for their valuable guidance and suggestions. I would also like to thank

Prof. Raj Dash for his valuable guidance.

Finally I would like to thank my friends and family members for the support during the

project.

Date:

Name of the candidate

Place:

2

INTRODUCTION

Orissa, a state in the eastern region of INDIA with a population of 36,706,920 out of which

more than 80% reside in the rural areas. It has posted steady growth figures for the last

decade and has attracted different industries on the basis of the resources available in the

state. The Indian telecom industry is not an exception from this. Recently there are six

different telecom operators providing the mobile services in the state. Out of them four are

GSM operators ( Airtel, BSNL, Smart GSM services, Aircel ) and two are CDMA operators

(RIM, TATA tele services). All the six operators provide the two basic type of mobile

services ie Prepaid & Postpaid. “Vodafone” is the next to enter into the Orissa telecom

market as the 7th player and 5th GSM player. The prepaid services can be availed by the

customers at various multi branded telecom outlets and different shops. The market of

Orissa has been a prepaid driven market. But with the improvement in the economic and

financial status of the people and the advent of different industries in to the state, the

demand for the postpaid services is growing. The telecom operators generate higher

ARPU ( Average Revenue Per User ) from the postpaid services as compared to the

prepaid services. The postpaid subscriber is considered to be a long term customer as

compared to the prepaid subscriber. So the telecom operators are also focusing to

increase the postpaid subscriber base. The telecom operators are setting up their

franchise outlets such as “ARC” ( Airtel Relationship Center ), “Reliance Web world”,

“True Value Hub” and “Cellcity” as a part of their postpaid strategy. These outlets are

called as “Telecom Customer Touch points” and they serve the purpose of taking a new

postpaid connection to bill deposit by the subscribers. “Vodafone” will also come up with

its retail outlets named “VS” ( Vodafone Store ) and “VMS” ( Vodafone Mini Store ) to

promote the postpaid connection. The project comprises both consumer and retail study.

The consumer study is concentrated upon the postpaid segment with the emphasis to

understand the postpaid consumers’ buying behavior and their usage patterns. The

consumer study will help to formulate the marketing strategy for “Vodafone” in the

postpaid segment in order to acquire new customer. The retail study is carried out to

understand the business models of the telecom retail outlets such as “ARC” & “MBO”

(Multi Branded Outlet) and the exclusive traditional retail outlets such as “The Titan

World” & “Tanishq”. The ROI models of these retail outlets are studied. From the retail

study a proposed model for the “VS” ( Vodafone Store ) and “VMS” ( Vodafone Mini Store )

is made with showing the profit potential. The retail study will be helpful for “Vodafone” to

formulate the strategy for the “VS” & “VMS”.

3

TABLE OF CONTENTS

CONTENTS PAGE NO

1- AIMS & OBJECTIVES 6

2- RESEARCH METHODOLOGY 7

3- BACKGROUND 8

4- POST PAID CONSUMER STUDY

(i) Demographics 16

(ii) Brand recall 18

(iii) Tariff plans availed 19

(iv) Popular plans 20

(v) Usage patterns 21

(vi) Categorization of the plans 27

(vii) Parameters for choosing postpaid 31

(viii) Importance of offers 33

(ix) Parameters for switching operator 34

5- RETAIL STUDY

(i) Foot falls to sales ratio in telecom retail 36

(ii) Footfalls to sales ratio in traditional retail 37

(iii) Customer behavior in the retail outlets 39

(iv) Features for low range handsets 40

(v) Intention of people visiting retail outlets 41

(vi) Parameters for buying in a retail outlet 43

(vii) Parameters for retailers to promote telecom operator 45

6- COMPETITORS’ SWOT 46

7- BUSINESS MODEL OF TELECOM CUSTOMER TOUCH POINT 51

8- BUSINESS MODEL OF MBO 53

9- BUSINESS MODEL OF WATCH SHOP 56

4

10- BUSINESS MODEL OF GOLD SHOP 58

11- CONCLUSION

(I) Consumer study 61

(ii) Retail study 62

12- ANNEXTURES

(i) Consumer questionnaire 64

(ii) retail questionnaire 67

5

AIMS & OBJECTIVES

AIM OF THE STUDY :-

1- To study the postpaid consumers’ buying behavior.

2- A comparative study of the business models of the telecom

retail outlets and the exclusive traditional retail outlets.

OBJECTIVES OF THE STUDY :-

( A ) CONSUMER STUDY:

1- To understand the importance of different parameters for choosing a

postpaid connection.

2- To find out the usage patterns of the postpaid consumers.

3- To find out the importance of different offers provided by the telecom

operators.

4- To find out the important parameters for a customer for switching to a

new operator.

( B ) RETAIL STUDY:

1- To understand the business models of the telecom retail outlets and

the exclusive traditional retail outlets.

2- To find out the footfalls to sales conversion ratio in both telecom and

exclusive traditional retail outlets.

3- To find out the importance of the parameters for the dealer/franchisee

to promote the telecom operator’s products & services.

6

RESEARCH METHODOLOGY

SAMPLE SIZE:-1- CONSUMER STUDY= 200, Area covered- Cuttack & Bhubaneswar

2- RETAIL STUDY: ( i ) Telecom retail outlets = 50

( ii ) ExclusiveTraditional retail outlets = 25

Area covered : ( i ) Cuttack- Badambadi, Dolmundai, College square Buxi bazaar ( ii ) Bhubaneswar- Sahid nagar, Kharabel nagar, Bapuji nagar, Cuttack road

SAMPLING METHOD:-

1- CONSUMER STUDY: “Quota sampling” based on the approx ratio

of the postpaid subscriber base of different

operators.

BSNL= 120 AIRTEL= 42 RIM= 20 SMART= 18

2- RETAIL STUDY: “Random sampling”

( i ) Telecom retail: MBO (Multi Branded Outlet)= 40

Telecom customer touch points=10

( ii ) Exclusive traditional outlets: Gold shop= 10,

Apparel shop= 10, watch shop= 5

RESEARCH METHODOLOGY:- 1- PRIMARY STUDY: Data collection through questionnaires

2- SECONDARY STUDY: Collection of postpaid plans

3- OBSERVATIONAL STUDY : To find out the footfalls to sales ratio & to study people’s behavior in the outlets.

QUESTIONNAIRE DESIGN:-

Closed ended questionnaires are made for 1- Consumer 2- telecom retail

3- Traditional retail

TOOLS USED FOR ANALYSIS:-

1- MS- Excel 3- Pie charts, Bar graphs

7

2- SPSS- 10

8

INDIAN TELECOM INDUSTRY SCENARIO

The Indian telecom industry has posted significant growth for the last 5 years both in

terms of subscriber base and revenue. The following graph shows the growth in the

subscriber base of the mobile services in the last 5 years.

( GROWTH OF THE MOBILE SUBSCRIBER BASE )

The mobile services has the players in both the segments of GSM and CDMA technology.

The following pie chart shows the technology wise market share in the mobile services.

( TECHNOLOGY WISE MARKET SHARE )

9

The following table shows the performance indicators of the telecom services up to the

quarter end December 07.

10

The mobile industry in India is predominantly prepaid driven market. The following graph

shows the status of the different key indicators of the GSM services.

( KEY INDICATORS OF THE GSM SERVICES )

The CDMA services has mainly attracted the customer segments who want to avail mobile

services at lower cost. The following graph shows the status of the key indicators of the

CDMA services.

( KEY INDICATORS OF THE CDMA SERVICES )

11

The different types of calls made by a mobile subscriber can be of following types.

( i ) intra circle to mobile ( ii ) intracircle to fixed lines (iii ) inter circle to mobile

( iv ) intercircle to fixed lines.

The following graph shows the distribution of different traffics for the GSM services.

( GSM ORIGINATED TRAFFIC DISTRIBUTION BY TERMINATING NETWORK)

The following graph shows the traffic distribution pattern for the CDMA services.

12

The following graph shows the operator wise market share of the GSM service providers.

( OPERATOR WISE MARKET SHARE OF GSM SERVICE PROVIDERS )

The following graph shows the operator wise market share of the CDMA service providers.

( OPERATOR WISE MARKET SHARE OF CDMA SERVICE PROVIDERS )

13

ARPU (AVERAGE REVENUE PER USER) & MOU (MINUTES OF USAGE) :-

CIRCLE POSTPAID ARPU PREPAID ARPU BLENDED ARPU

Circle-A 618 208 249Circle-B 532 213 232Circle-C 569 244 269Metro 714 248 346All India 628 219 261

( ARPU PER MONTH ; FIGURES UPTO DEC-07 )

COMPOSITION OF REVENUE ( FIGURES UPTO DEC-07 )

ITEMS SHARE

Rental revenue 21.3%Revenue from call charges 56.1%Revenue from roaming 9.8%Revenue from SMS 4.6%Other revenues ( VAS, installation etc ) 8.2%

USAGE PATTERN (MOU) { FIGURES UPTO DEC-07 }

MOU/ subscriber 464minsIncoming MOU 243minsOutgoing MOU 221minsIncoming : Outgoing MOU 53:47Postpaid MOU (incoming : outgoing) 47:53Prepaid MOU (incoming : outgoing) 54:46Outgoing SMS / subscriber 28

14

DEMOGRAPHICS

AGE OF THE RESPONDENTS:-

17, 9%

79, 39%89, 44%

15, 8% 20-30YRS

30-40YRS

40-50YRS

>50YRS

OCCUPATION OF THE RESPONDENTS:-

ANNUAL INCOME OF THE RESPONDENTS:-

AGE FREQUENCY20-30yrs 1730-40yrs 7940-50yrs 89>50yrs 15TOTAL 200

OCCUPATION FREQUENCYBanking 99Sales & marketing 27Business 31 Health 25Education 11Technical 4Others 3

16

Occupation of the respondents

99

27

31

2511 4 3

Banking

Sales & marketing

Business

Health

Education

Technical

Others

TELECOM OPERATOR’S SERVICE RESPONDENTS AVAILING:-

AVERAGE MONTHLY EXPENDITURE BY THE RESPONDENTS ON MOBILE SERVICE:-

INCOME FREQUENCY2-3lakhs 733-4lakhs 1044-5lakhs 23TOTAL 200

OPERATOR FREQUENCYBSNL 120Airtel 42RIM 20

Smart 18TOTAL 200

17

Annual income of the respondents

73, 37%

104, 51%

23, 12%

2-3lks

3-4lks

4-5lks

Operator's service used by the respondents

120, 60%42, 21%

20, 10%18, 9%

BSNL

Airtel

RIM

Smart

EXPENDITURE FREQUENCY PERCENTAGE450-600/- 1 0.5%600-750/- 28 14%

750-1000/- 85 42.5%>1000/- 86 43%

BRAND RECALL BY THE RESPONDENTS:-

OPERATOR BRAND-1 BRAND-2 BRAND-3BSNL 48% 18.5% 31.5%Airtel 44% 39% 16.5%

Reliance 5.5% 40.5% 51.5%Hutch 1.5% 0.5% 0%

Vodafone 1% 0.5% 0%Idea 0% 1% 0.5%

18

Monthly expenditure on mobile

1, 1% 28, 14%

85, 42%

86, 43%450-600

600-750

750-1000

>1000

0%

10%

20%

30%

40%

50%

60%

Brand-1 Brand-2 Brand-3

BSNL

Airtel

Reliance

Hutch

Vodafone

Idea

SOURCE OF INFORMATION OF THE POSTPAID CONNECTION:-

0

10

20

30

40

50

60

70

BSNL Airtel Smart RIM

Print media

TV

office/customertouch point

DIFFERENT TARIFF PLANS AVAILED BY THE RESPONDENTS :- During the survey 12 different postpaid plans of 4 different operators ( BSNL, Airtel, Smart,

RIM ) were found to be used by the respondents. The following table shows the number

and percentage of respondents availing the different postpaid plans.

PLANS FREQUENCY PERCENTAGE

OPERATOR PRINT MEDIA

TV TELECOM OFFICE/CUSTOMER TOUCH POINT

TOTAL

BSNL 57 0 63 120Airtel 9 11 22 42Smart 0 0 18 18RIM 0 0 20 20

19

1) BSNL-325 46 23%2) BSNL ONE INDIA 28 14%3) BSNL-525 25 12.5%4) BSNL-725 21 10.5%5) AIRTEL-299 16 8%6) AIRTEL-600FV 15 7.5%7) AIRTEL IND HOME 299 11 5.5%8) SMART-JOY-249 5 2.5%9) SMART-JOY-149 8 4%10) SMART-450 5 2.5%11) RIM-NJ-249 12 6%12) RIM-STD-375 8 4%

TOTAL 200 100%

DIFFERENT TARIFF PLANS ACROSS VARIOUS OCCUPATIONS :-

The following table represents the number of respondents from different occupations

availing each of the 12 postpaid plans.

PLANS Banking Sales &Marketing

Business Health Education Technical Others

BSNL-325 26 1 10 6 1 2 BSNL ONEIND 19 2 2 4 1 BSNL-525 21 1 2 1 BSNL-725 8 9 3 1 AIRTEL-299 5 3 2 3 1 2 AIRTEL-600FV 1 1 13 AIRTL IND HOME-299

4 2 2 2 1

SMART-JOY249 3 2SMART-JOY149 7 1 SMART- 450 5 RIM-NJ249 12 RIM-STD-375 7 1

TOTAL 99 27 31 25 11 4 3

MOST POPULAR PLANS ACROSS VARIOUS OCCUPATION :-

The following tables show the top- 3 or top- 2 plans across different occupations, based

on the percentage of respondents of corresponding occupation availing the postpaid plan.

1) BANKING:-

20

PLAN-1 BSNL-325 26%PLAN-2 BSNL-525 21%PLAN-3 BSNL ONE IND 19%

2) SALES & MARKETING:-

PLAN-1 RIM-NJ-249 44%PLAN-2 RIM-STD-375 26%PLAN-3 AIRTEL-299 11%

3) BUSINESS:-

PLAN-1 AIRTEL-600FV 42%PLAN-2 BSNL-725 29%

4) HEALTH:-

PLAN-1 BSNL-325 40%PLAN-2 BSNL ONE INDIA 16%PLAN-3 AIRTEL-299 12%

5) EDUCATION:-

PLAN-1 BSNL-325 54%PLAN-2 AIRTEL ONE INDIA 18%

USAGE PATTERNS

USAGE PATTERN OF THE RESPONDENTS AVAILING “BSNL-325” PLAN :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant

No of STD calls 0% 50% 41% 7% 2%No of local calls 0% 0% 0% 15% 85%No of SMS 15% 35% 48% 2% 0%

21

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

No of STDcalls

No of localcalls

No of SMS

Least important

Not much important

Moderately important

Very important

Extremely important

USAGE PATTERN OF THE RESPONDENTS AVAILING “BSNL ONE INDIA” PLAN :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant


0%10%

20%30%

40%50%60%

70%80%

90%100%

No of STDcalls

No of localcalls

No of SMS

Least important

Not much important


Very important

Extremely important

USAGE PATERN OF THE RESPONDENTS AVAILING “BSNL-525” PLAN :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant


22

0%10%

20%30%

40%50%60%

70%80%

90%100%

No of STDcalls

No of localcalls

No of SMS

Least important

Not much important


Very important

Extremely important

USAGE PATTERN OF THE RESPONDENTS AVAILING “BSNL-725” PLAN :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant


0%10%

20%30%

40%50%60%

70%80%

90%100%

No of STDcalls

No of localcalls

No of SMS

Least important

Not much important


Very important

Extremely important

USAGE PATTERN OF THE RESPONDENTS AVAILING “AIRTEL-299” PLAN :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant


23

0%

10%

20%

30%

40%

50%

60%

70%

80%

No of STDcalls

No of localcalls

No of SMS

Least important

Not much important


Very important

Extremely important

USAGE PATTERN OF THE RESPONDENTS AVAILING “AIRTEL-600FV” PLAN :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant


0%10%

20%30%

40%50%60%

70%80%

90%100%

No of STDcalls

No of localcalls

No of SMS

Least important

Not much important


Very important

Extremely important

USAGE PATTERN OF THE RESPONDENTS AVAILING “AIRTEL INDIA HOME -299” :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant


24

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

No of STDcalls

No of localcalls

No of SMS

Least important

Not much important


Very important

Extremely important

USAGE PATTERN OF THE RESPONDENTS AVAILING “SMART-JOY-249” PLAN :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant


0%

10%

20%

30%

40%

50%

60%

No of STDcalls

No of localcalls

No of SMS

Least important

Not much important


Very important

Extremely important

USAGE PATTERN OF THE RESPONDENTS AVAILING “SMART-JOY-149” PLAN :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant

No of STD calls 0% 0% 25% 37.5% 37.5%No of local calls 0% 0% 12.5% 0% 87.5%No of SMS 0% 50% 50% 0% 0%

25

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

No ofSTD calls

No oflocal calls

No ofSMS

Least important

Not muchimportant

Moderatelyimportant

Very important

Extremelyimportant

USAGE PATTERN OF THE RESPONDENTS AVAILING “SMART-450” PLAN :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant


0%

10%20%30%

40%50%60%70%

80%90%

100%

No ofSTD calls

No oflocal calls

No ofSMS

Least important

Not muchimportant

Moderatelyimportant

Very important

Extremelyimportant

USAGE PATTERN OF THE RESPONDENTS AVAILING “RIM-NJ-249” PLAN :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant


26

0%

10%20%30%

40%50%60%70%

80%90%

100%

No ofSTD calls

No oflocal calls

No ofSMS

Least important

Not muchimportant

Moderatelyimportant

Very important

Extremelyimportant

USAGE PATTERN OF THE RESPONDENTS AVAILING “RIM-STD-375” PLAN :-

LeastImportant

Not muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant


0%

10%20%30%

40%50%60%70%

80%90%

100%

No ofSTD calls

No oflocal calls

No ofSMS

Least important

Not muchimportant

Moderatelyimportant

Very important

Extremelyimportant

INFERENCES DRAWN FROM THE USAGE PATTERNS OF THE DIFFERENT PLANS

The usage pattern includes the basic services availed by the respondents

( I ) Importance of the No of local calls made by the respondents

( ii ) Importance of the No of STD calls made by the respondents

(iii ) Importance of the No of SMS made by the respondents

27

The usage patterns for different plans described earlier, show that

( i) In all the plans the importance of the No. of local calls is on the higher side

ie very important to extremely important.

( ii) The importance for the No. of STD calls varies across the plans greatly from

Not much important to extremely important.

( iii) In all the plans the importance of No. of SMS is on the lower side ie least

important to moderately important.

CATEGORIZATION OF THE PLANS

The table given below shows the categorization of the above 12 plans on the

basis of the amount of the monthly rental. The plans are divided into three

categories such as 1- Low rental 2- Medium rental 3- high rental

The key features and the weaknesses of these plans are described below

LOW RENTAL PLANS

BSNL – ONE INDIA PLAN :-

( i ) Key features ( USP ) : - All the STD call @ 1/- per minute

- Lower charges on both local & national SMS

( ii ) Weakness : - No weakness was found in this plan as it specifically fits to

the usage pattern of high no of STD calls.

LOW RENTAL MEDIUM RENTAL HIGH RENTAL

1- BSNL one India (299)

2- Airtel India home-299

3- Airtel 299

4- Smart joy 249

5- RIM-NJ-249

1- BSNL plan-325

2- RIM-STD-375

3- Smart- plan 450

4- BSNL plan-525

1- Airtel- 600FV

2- BSNL plan- 725

28

AIRTEL – INDIA HOME – 299 :-

( i ) Key features ( USP ) : - All calls @ 1/- per minute

( ii ) Weakness : - Higher charges on local calls

- Higher charges on local SMS

AIRTEL- 299 :-

( i ) Key features ( USP ) : - Free usage of 100/- for local calls

- Lower charges (0.3) on local calls to the mobile on

Same network

RIM - NJ – 249 :-

( i ) Key features ( USP ) : - Free usage of 249/- for the local calls

- Free usage of 75/- of local SMS

- Cheaper local call charges

( ii ) Weakness : - Higher charges on STD calls

- Higher charges on national SMS

- CDMA handsets ( though it has very low local call charges,

many people don’t prefer the CDMA service )

SMART JOY- 249:-

( i ) Key features ( USP ) : - Low charges (0.19) on the local calls to the mobiles

on the same network

- All STD calls are @ 1/- per minute

MEDIUM RENTAL PLANS

BSNL- PLAN -325 :-


- Lowest pulse rate of 15 sec

( ii ) Weakness : - Comparatively higher charges on local calls

- Most of the users don’t understand the concept of pulse rate

29

as a result the benefits of low pulse rate is not perceived by

the users.

RIM – MY STD – 375 :-

( i ) Key features ( USP ) : - Free usage of 375/- for both local & STD calls

- Lower charges on local calls

( ii ) Weaknesses : - Comparatively higher charges on STD calls in comparison

to the one-India plans of BSNL & Airtel, which are meant

for heavy STD callers.

- Higher charges on local SMS

- Very high charges on national SMS

BSNL – PLAN – 525 :-


- Lowest pulse rate @ 15sec

- All STD call charges @ 1/- per minute

( ii ) Weakness : - Higher monthly rental

SMART – PLAN – 450 :-

( i ) Key features ( USP ) : - Free local calls to the mobile phones on the same

network

( ii ) Weakness : - Higher local call charges to the fixed lines

- Higher monthly rental in comparison to other two plans

HIGH RENTAL PLANS

BSNL – PLAN – 725 :-

( i ) Key features ( USP ) : - Free local calls on the same network

- Free local SMS on the same network

- Very low STD call charges on the same network

- Lower charges on national SMS

30

( ii ) Weakness : - Very high monthly rental

AIRTEL – 600 – FV :-

( i ) Key features ( USP ) : - Free usage of 600/- for local calls

- Cheaper local call tariffs to the mobile on same

network

- Lower charges on local SMS

( ii ) Weakness : - High charges(1/-) on the local calls to the fixed lines

- Higher charges on national SMS(1/-) in comparison to

BSNL-725

IMPORTANCE OF DIFFERENT PARAMETERS FOR CHOOSING POSTPAID CONNECTION

PARAMETERS :-

( i ) Tariffs ( vi ) Roaming charges

( ii ) No of STD calls you make ( vii ) Network coverage & connectivity

( iii ) No of local calls you make ( viii ) Customer service

31

( iv) No of SMS you make ( ix ) Easy availability of the connection

( v ) Usage of VAS ( x ) Ease of bill deposit

The following table shows the percentage of the respondents giving weight age

for the above parameters.

PARAMETERS

Least

important

Not much

important

Moderate

important

Very

important

Extremely

important

Tariffs 0% 0% 0% 6.5% 93.5%

No of STD calls 0% 18.5% 32% 21% 28.5%

No of local calls 0% 0% 1% 7.5% 91.5%

No of SMS 12% 29.5% 45.5% 12.5% 0.5%

Usage of VAS 7.5% 39.5% 49.5% 3.5% 0%

Roaming 5% 23% 34% 27.5% 10.5%

Network coverage 0% 0% 0% 10.5% 89.5%

Customer service 0% 1% 19.5% 41% 38.5%

Easy availability connection 0.5% 0% 19% 51% 29.5%

Ease of bill deposit 0% 0% 10% 67.5% 22.5%

The above table is represented in the next two Bar- graphs

The first graph shows the weight-age for the first 5 parameters mentioned above

32

0%10%20%30%40%50%60%70%80%90%

100%

weightage

Tariff STDcalls

Localcalls

SMS VAS

parameters

Least important

Not much imp

moderately imp

very important

extremely imp

The second graph shows the weight-age for the next 5 parameters mentioned

above

0%10%20%30%40%50%60%70%80%90%

weightage

Roamingcharges

Network Customerservice

EasyAvailability

Easy billdeposit

parameters

Least important

Not much imp

moderately imp

very important

extremely imp

IMPORTANCE OF VARIOUS OFFERS PROVIDED BY THE OPERATORS

PARAMETERS:-

33

( i ) Less security deposit ( iv ) Less charges on VAS

( ii ) Less tariffs ( v ) SMS packs

( iii ) Free calls

The following table shows the percentage of the respondents giving weightage to

the above mentioned parameters.

PARAMETERSLeast

valuableNot muchvaluable

Moderately valuable

Very valuable

Extremely valuable

Less security deposit 2.5% 21.5% 35% 38.5% 2.5%Less tariffs 0% 0% 0% 7.5% 92.5%Free calls 0% 1% 2.5% 32% 64.5%Less charges on VAS 9% 32.5% 56% 2% 0.5%SMS packs 9% 32.5% 56% 2% 0.5%

The graph below represents the above table

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00%

weightage

Lesssecuritydeposit

Less tariffFree callsLess VAScharges

SMSpacks

Offers

Least valuable

Not much valuable

Moderately valuable

Very valuable

Extremely valuable

IMPORTANCE OF THE PARAMETERS FOR SWITCHING TO A NEW OPERATOR

PARAMETERS:- ( i ) Better tariffs ( iv ) Better VAS

34

( ii ) Better network ( v ) More entertainment facility

( iii ) Better customer service ( vi ) National presence

The following table shows the percentage of the respondents giving weightage to

the above mentioned parameters.

PARAMETERSLeast

importantNot muchimportant

Moderatelyimportant

Veryimportant

Extremelyimportant

Better tariffs 0% 1.5% 3% 17% 78.5%Better network 0% 1.5% 2.5% 12% 84%Better service 0% 3% 20.5% 31% 45.5%More entertainment facility 20.5% 57.5% 21% 1% 0%Better VAS 12% 39% 45.5% 3.5% 0%National presence 0.5% 20% 26.5% 37.5% 15.5%

The following graph represents the above table

0%10%

20%30%

40%50%

60%70%

80%90%

better tariffs better network bettercustomerservice

Entertainmentfacility

better VAS nationalpresence

least important

not much important

moderately important

very important

extremely important

The above graph shows that better network and better tariffs are the most

important parameters, the customers look in an operator to switch. These are

followed by better customer service, then national presence. The lowest

importance is given to better VAS and more entertainment facility.

35

OBSERVATION OF FOOTFALLS TO SALES RATIO IN TELECOM RETAIL

OUTLETS :-

36

PARAMETERS :

( i ) No of footfalls/hr on peak hours ( 6:00pm to 9:00pm )

( ii ) No of footfalls/hr on off-peak hours ( 12:00noon to 3:00pm )

( iii ) No of people making a purchase on peak hours ( 6:00pm to 9:00pm )

( iv ) No of people making a purchase on off-peak hours( 12:00noon to 4:00pm )

The purchase includes any of the following items

( i ) Handset

( ii ) Accessory

( iii ) GSK & RCV

( iv ) Postpaid connection & sim replacement ( ARC, Reliance Webworld )

PEAK HOUR OFF-PEAK HOUR

NAME OF THE OUTLET

NO OF

FOOTFALLS

PER HOUR

NO OF

PURCHASES

PER HOUR

RATIO NO OF

FOOTFALLS

PER HOUR

NO OF

PURCHASES

PER HOUR

RATIO

a) CHAIN STORES :

The Mobile store, CTC 12 5 42% 8 4 50%

The Mobile store, BBSR 10 4 40% 7 3 43%

M- Bazaar, CTC 20 7 35% 12 4 33%

M- Bazaar, BBSR 22 8 36% 15 6 40%

b) INDIVIDUAL MBO :

Electronics World, CTC 15 5 33% 8 3 37%

Life Style, BBSR 12 5 42% 6 3 50%

c) FRANCHISE OUTLETS

ARC, CTC 10 6 60% 8 5 62%

ARC, BBSR 8 5 62% 5 3 60%

Reliance Web-world, BBSR 10 5 50% 9 5 55%

Reliance Web-world, BBSR 6 3 50% 7 4 57%

The above table shows that, in the franchise outlets of the telecom operators such

as ARC & Reliance Web-world, the foot falls are less, but the sales conversion

percentage is higher. The reason for this is that the most of the customers come to

these outlets with pre-decided mindset to buy a specific product such as a new

postpaid or a prepaid connection, some persons come for the SIM replacement

process and some come for the easy recharge. In case of the SIM replacement and

Easy recharge the sales conversion is 100%.

37

In case of M-Bazaar the footfalls are highest, but the sales conversion percentage

is very low. The reason for this is, as this store is located in a shopping mall, the

people coming to the mall for shopping just visit the store to see the available

products and also for gathering information about some products.

In case of other MBOs ( Multi Brand Outlet ) “The Mobile store” has higher sales

conversion percentage. Because people coming over here feel that “The Mobile

store” is a bigger brand so the quality and reliability of the products will be higher

than any general outlet. So people prefer buying products of higher price ranges in

“The Mobile Store”.

OBSERVATION OF FOOTFALLS TO SALES CONVERSION RATIO IN

EXCLUSIVE TRADITIONLA RETAIL OUTLETS :-

The exclusive traditional retail outlets includes

( i ) Gold shops like “Tanishq”

( ii ) Watch Shop like “ The Titan World”

( iii ) Apparel shop like “Adidas”

PEAK HOURS OFF-PEAK HOURS

NAME OF THE OUTLET NO OF

FOOTFALLS

NO OF

PURCHASES

RATIO NO OF

FOOTFALLS

NO OF

PURCHASE

RATIO

The TITAN World, CTC 10 7 70% 6 4 66%

The TITAN World, BBSR 12 9 75% 9 6 66%

Tanishq, CTC 12 8 66% 9 5 55%

Tanishq, BBSR 14 10 71% 10 7 70%

Adidas, CTC 8 3 37% 6 3 50%

Adidas, BBSR 9 4 44% 6 2 33%

The sales conversion percentage in the gold shop like “Tanishq” is higher because

when people were asked in the shop it was found that they are brand loyal of the

shop. Those people who didn’t make purchase found the price to be higher.

The sales conversion percentage in “The TITAN World” is higher because people

find it to be the only branded watch show room in the city with better service.

38

The lower sales conversion percentage in the apparel shop like “Adidas” is due to

the higher price range of the products.

The above two tables show that the sales conversion percentage is higher in the

shops with greater brand image. The reason is that people associate the brand

image of the shop with the quality, originality, reliability of the products and they

also expect better customer service in these shops.

The mall associated shops have higher footfalls but lesser sales conversion

percentage as people coming for other shopping just visit the store either to look

at the products or to have information about some products.

OBSERVATION OF THE CUSTOMERS’ BEHAVIOR IN THE TELECOM

RETAIL OUTLETS :-

PARAMETERS:

39

( i ) The “Requests” made by the customers

( ii ) The “Enquiries” made by the customers

( iii ) The “Complains” made by the customers

MBO ARC RELIANCE

WEB WORLD

REQUESTS 1- Product demonstration2- Price negotiation3- Request for free accessories4- RCV & Easy recharge

1- To explain the postpaid plans2- To do the activation as soon as possible3- To get a good number of choice4- Deactivation of VAS5- Easy recharge 6- SIM replacement7- To collect documents from home

1- Product demonstration2- VAS deactivation3- Quick activation

ENQUIRIES 1- Price of the products2- Product features3- Product demerits4- Extent of availability of repair services5- About the products to be launched to the market 6- Comparison between Different products7- Tariffs of new connection 8- Offers provided by the telecom operators 9- Warranty / guaranty of the products

1- Suitability of postpaid plans according to the usage pattern 2- Tariffs of the postpaid plans3- Time needed for the SIM activation4- Documentation for new connection5- The bill amount6- Special offers by the telecom operator

1- Price of the hand sets2- Functions of the handsets3- Reliability of the hand sets4- Tariff plans5- Membership fee for broad- band surfing & games 6- Special offers/schemes

COMPLAINS 1- Technical problems in the hand sets2- Problems in the accessories3- Delay in SIM activation4- Delay in easy recharge5- Price to be higher in comparison to other shops

1- Fault in postpaid bill2- Bill not received3- SIM blocks4- Problems in GPRS5- Wrong hello-tunes got activated6- Installation problem of PCO

1- Technical problems in the handsets2- Problem in connectivity of Data cards & USB3- Fault in bill4- Different call charges as compared to the tariff plan5- Higher charges for internet & games

IMPORTANCE OF THE FEATURES, PEOPLE LOOK FOR LOW RANGE

HANDSETS

FEATURES :

( i ) Colour display ( v ) MP3

40

( ii ) Battery talk-time ( vi ) FM – Radio

( iii ) Battery standby time ( vii ) Inbuilt loudspeaker

( iv ) Polyphonic ring tones ( viii ) GPRS compatibility

The following table shows the weightage given by the respondents for the above

parameters.

Now a days the HBO ( Handset Bundle Offer ) are on high demand. These HBOs

are usually coming with the low range hand sets below Rs 5,000/- . For example

Airtel has the HBO with NOKIA-1200 @ Rs 1300/-, NOKIA-1208 @ Rs 1600/-, NOKIA-

1650 @ Rs 2000/-, NOKIA-2626 @ Rs 2200/-, NOKIA-2600 @ Rs 3200/- . These

handsets constitute around 30% to 40% of the total sales in a MBO ( Multi Brand

Outlet ).

Vodafone will also come with its HBOs called Vodafone magic box ( black & white

@ 1199/- and colour @ 1599/- ). The magic box has the above features shown in the

table and it also gives some added benefits such as free talk-time of 50/- , local

calling bonus card worth Rs 55/- , night calling bonus card worth RS 22/- , free

caller tune worth Rs 45/- and free Vodafone alerts worth Rs 30/- .

The basic and the added features will have good market share in the HBO

segment.

INTENTIONS OF PEOPLE VISITING TO A TELECOM RETAIL OUTLET

PARAMETERS:

( i ) Window shopping

FEATURES LEAST

IMPORTANT

AVERAGE

IMPORTANT

MOST

IMPORTANT

Colour display 20% 80%

Battery talk-time 100%

Battery standby time 100%

Polyphonic ring tones 36% 47% 17%

MP3 5% 95%

FM-radio 2% 98%

Inbuilt Loud speaker 23% 44% 33%

GPRS compatibility 85% 15%

41

( ii ) Information gathering about the products

( iii ) Checking of new arrivals

( iv ) Comparing different shops

( v ) Serious buying intention

The following table shows the weightage given by the respondents to the above

parameters.

The above table is represented in the following graph.

0%

10%

20%

30%

40%

50%

60%

70%

weightage

widowshopping

information

gathering

checknew

arrivals

compareshops

seriousbuying

intention

intentions

least likely

likely

most likely

Window shopping happens more in the MBOs ( Multi Branded Outlets ) as

compared to the franchise outlets of the telecom operators.

PARAMETERS

LEAST

LIKELY LIKELY

MOST

LIKELY

Window shopping 20% 30% 50%

Information gathering 50% 50%

Checking new arrivals 2% 54% 44%

Comparing the shops 5% 25% 70%

Serious buying intention 70% 15% 15%

42

In the MBOs people come for gathering information about the hand sets ,

accessories, GSK etc such as price, features, reliability of the products. In the

telecom operator’s franchise outlets people come to gather information about the

new postpaid connection, the services available etc.

People come to the MBOs to compare the prices and the discounts or additional

benefits along with the hand sets across various shops before buying.

Most of the people come to the franchise outlets of the telecom operators with

serious buying intention as they have pre-decided to use the products and

services of that telecom operator.

IMPORTANCE OF THE PARAMETERS FOR THE CUSTOMERS BEFORE

BUYING IN A TELECOM RETAIL OUTLET

PARAMETERS:

( i ) Brand image of the shop

43

( ii ) Good location of the shop

( iii ) Distance traveled to the shop

( iv ) Availability of products of different price ranges

( v ) Availability of products of multiple brands

( vi ) Customer handling

( vii ) Post-sales customer service

( viii ) Look of the shop

( ix ) Assortment style

( x ) Special offers / schemes provided by the shop

The following table shows the weight-age given by the respondents to the above

parameters.

PARAMETERS LEAST

IMPORTANT

AVERAGE

IMPORTANT

MOST

IMPORTANT

Brand image of the shop 8% 92%

Good location of the shop 6% 94%

Distance traveled to the shop 16% 56% 28%

Availability of products of different Price ranges 2% 98%

Availability of product of multiple brands 20% 30% 50%

Customer handling 100%

Post-sales customer service 2% 98%

Look of the shop 26% 74%

Assortment style 22% 78%

Special offers provided by the shop 32% 68%

The above table is represented in the following two graphs

GRAPH-1 shows the importance of the first five parameters

44

8%

92%

6%

94%

16%

56%

28%

2%

98%

20%30%

50%

00.10.20.30.40.50.60.70.80.9

1

weight-age

brandimage

goodlocation

distancetravelled

priceranges

multiplebrand

parameters

least important

average important

most important

GRAPH-2 shows the importance of the next five parameters in the table

100%

2%

98%

26%

74%

22%

78%

32%

68%

0

0.2

0.4

0.6

0.8

1

weightage

customerhandling

customerservice

look of theshop

assortmentstyle

specialoffers

parameters

least important

average important

most important

IMPORTANCE OF THE PARAMETERS FOR THE RETAILER TO PROMOTE

THE PRODUCTS OF THE TELECOM OPERATORS

PARAMETERS:

45

( i ) Brand image of the operator

( ii ) Customer demand for the operator’s products

( iii ) Profit margin for the retailer

( iv ) Effective distribution channel of the operator

( v ) Regular offers for the customers

( vi ) Special trade offers for the retailer

( vii ) Relationship with the sales people of the operator

The following table and the graph representing it show the weight-age given to the

above parameters by the respondents.

PARAMETERS LEAST

IMPORTANT

AVERAGE

IMPORTANT

MOST

IMPORTANT

Brand image of the operator 32% 36% 32%

Customer demand for the operator’s products 16% 84%

Profit margin for the retailer 12% 88%

Effective distribution channel of the operator 30% 70%

Regular offers for the customers 20% 72% 8%

Special trade offers for the retailer 42% 58%

Relationship with the operator’s sales people 20% 80%

0%10%20%30%40%50%60%70%80%90%

weightage

brandimage

customerdemand

profitmargin

distributionchannel

offers forcustomers

trade offers relationwith sales

people

parameters

least importnt

average important

most important

COMPETITORS’ SWOT ANALYSIS

SWOT “AIRTEL”

STRENGTHS WEAKNESSES

46

- Strong network coverage

- Immediate complain resolution

- Easiest bill payment system

- Very economical plan for the STD callers

- Quickest activation

- HBO with NOKIA

- Frequent visits of the sales people to retailers

- Very good relation ship of the sales people

with the retailers

- Quick CAF collection from the retailers

- Constant distributors

- Free demo sim to the dealers with 300/- free

Talk-time and 2yrs validity

- Higher charges on local calls

- Large no of promotional SMS

- Higher pulse rate( 60sec in all the plans )

- Problem in easy recharge

- Many of the ARC don’t deal with HBO

- Lack of promotional campaigns for ARC

OPPORTUNITIES

- Untapped rural areas

- Low tele- density of Orissa

- To grab the low profile customers with low

cost HBO

- Large student / youth mass

- High brand recalls by the people

- Satisfaction of the retailers

- Growing industries in Orissa

THREATS

- Entry of “Vodafone” in to the market

- Recent increased promotional activity of

BSNL such as 4.5% commission to the

retailers on RCV

SWOT “BSNL”

47

STRENGTHS

- Broad network spread

- Cheaper tariffs for STD calls & to fixed lines

- No frequent changes in the tariff plans

- No hidden parameters in the tariffs

- Lesser pulse rate in some plans ( plan-325

& plan-525)

- Plan-725 is one of the best plans for the

heavy users such as business community

- Accurate billing

- High margin ( 4.5% ) on RCV to retailers

- High return on sim activation

- Free sim to the distributors

WEAKNESSES

- Longer documentation & activation process

- Poor customer service

- Very low frequency of offers for customers

- Evening network congestion

- Bill deposit only in the telecom office

- Poor supply of products

- Lack of aggressive marketing strategy

- Lack of definite focus on youth mass

OPPORTUNITIES

- Very high brand recall by the people

- High demand amongst the GOVT employees

- Untapped rural areas

- large youth mass

- High brand reliability amongst subscribers

- Large student / youth mass

- Growing industries

- Entry into the CDMA segment

THREATS

- Aggressive marketing strategy of other

operators

- Customer dissatisfaction with the complain

resolution

- Entry of Vodafone

- Low demand among youth

SWOT “SMART”

48

STRENGTHS

- Cheaper tariffs

- Frequent offers for the customers

- High margin for the retailers on

life-time sim

WEAKNESSES

- Poor network coverage

- High evening congestion

- Delayed response to complains

- Poor billing accuracy

- Poor activation process

- Very frequent changes in the tariffs

- Very less visits of the sales people to the dealers

- Poor CAF collection

- Frequent changes in the distributors

- Lack of promotion for postpaid

OPPORTUNITIES

- Higher demand among youth or the

student mass

- Regain the faith of the retailers by

providing higher margin on life-time

GSK

- Untapped rural market

THREATS

- Very high dissatisfaction amongst subscribers

regarding network problem

- Some customer segments think the operator

cheating the people

- High level of dissatisfaction amongst the retailers

due to frequent policy changes

- Entry of “Vodafone”

SWOT “RIM”

49

STRENGTHS

- Lowest investment to use mobile phone

- Cheaper tariffs

- Frequent offers for the customers

WEAKNESSES

- Delayed response to complains

- Very frequent changes in the tariffs

- Poor billing accuracy

- The handsets don’t have sophisticated look

- Poor performance of the “classic” handsets

- Frequent changes in distributors

- Poor activation

- Poor CAF collection

- Less visit of the sales people to the retailer

OPPORTUNITIES

- Growing demand for the HBOs

- The rural market with the potential for

low range handsets

- Large youth / student mass


THREATS

- HBO introduction in the GSM segment

- Growing demand for the new low cost

GSM handsets like Olympia, Fly etc.

- Declining faith of the customers

- Dissatisfaction amongst the retailers

- No preference of the retailers to sell the

products

- Entry of Vodafone magic box

- Entry of BSNL into the CDMA segment

50

SWOT “TTSL”

STRENGTHS

- Very low investment to avail mobile services.

WEAKNESSES

- 8- 9 sec advanced metering

- Poor performance of the handsets

- Poor network coverage

- Frequent changes in the distributors

- Poor product supply

- No visit of the sales people to the retailers

- No definite policy for retailers

OPPORTUNITIES

- Growing demand for the HBOs

- The rural market with the potential for

low range handsets

- Large youth / student mass


THREATS

- Declining faith of the customers

- HBO introduction in the GSM segment

- Growing demand for the new low cost

GSM handsets like Olympia, Fly etc

- No preference of the retailers to sell

the products

- Entry of Vodafone magic box

- Entry of BSNL into the CDMA segment

51

52

EXISTING MODEL OF TELECOM CUSTOMER TOUCH POINT

MONTHLY FIGURES OF “ARC”, BAJRAKABATI CUTTACK

Approx commission from postpaid bill deposit = 80,000/-

53

COMPANY

CUSTOMERTOUCH POINT

POSTPAIDPREPAIDPCOHBO &

ACCESSORIESCUSTOMER

SERVICE

EXPENDITURES

CUSTOMERS

1- Franchise2- Branding3- Promotional support4- Training support & staffs5- Product supply6- Store maintenance

REVENUE

1- Purchase of products2- Remuneration of staffs3- House rent4- Electricity5- Telephone bill6- Store maintenance7- Miscellaneous

Approx commission from new postpaid connection = 37,500/-

Approx commission on customer retention = 30,000/-

Approx profit from new PCO connection= 1,17,000/-

Approx profit from SIM replacement= 50,000/-

Approx profit from new prepaid connection= 1,800/-

Approx profit from prepaid easy-recharge= 12,000/-

Approx profit from PCO easy-recharge= 6,000/- TOTAL GROSS PROFIT = 3,34,300/-

( - ) OTHER EXPENDITURES

Remuneration of staffs ( 22 nos ) = 1,00,000/-

House rent = 10,000/-

Electricity = 5,000/-

Telephone bill = 5,000/-

Miscellaneous = 10,000/-

TOTAL = 1,30,000/-

APPROX NET PROFIT ( MONTHLY ) = 2,04,300/-

APPROX ROI ( MONTHLY ) = 22.38%

54

HANDSETSDISTRIBUTORS

BUSINESS MODEL OF MBO (MULTI BRAND OUTLET)

MONTHLY FIGURES OF “THE ELECTRONICS WORLD”, CUTTACK

55

1- Hand sets2- Show case3- Staffs4- Promotional offers

1- Display boards2- Promotional offers

1- GSK & RCV2- CAF collection

Accessories

CUSTOMERS

EXPENDITURES

MBO

OPERATORS’ DISTRIBUTORS

ACCESSORIESDISTRIBUTORS

TELECOMOPRATORS

HANDSETS ACCESSORY DOWNLOADSRCVSPREPAID

1- Product purchase2- Remuneration of staffs3- House rent ( optional )4- Electricity5- Telephone bill6- Store maintenance7- Miscellaneous

REVENUES:-

Approx profit from handsets = 36,000/-

Approx profit from accessories = 24,000/-

Approx profit from RCVs = 10,000/-

Approx profit from activations = 14,000/-

Approx profit from down-loadings = 5,000/-

APPOX TOTAL GROSS PROFIT = 89,000/-

( - ) OTHER EXPENDITURES:-




Remuneration of staff ( 1nos ) = 2,000/-

Store maintenance = 10,000/-


TOTAL = 30,000/-

APPROX TOTAL NET PROFIT = 59,000/-

APPROX ROI ( MONTHLY ) = 24.08%

56

MONTHLY FIGURES OF “SMART AGENCY”, BBSR

REVENUES:-

Approx profit from handsets = 20,000/-

Approx profit from accessories = 18,000/-

Approx profit from RCVs = 7,500/-

Approx profit from activations = 10,000/-

APPROX TOTAL GROSS PROFIT = 55,500/-



Staffs (1) = 2,000/-





TOTAL = 20,000/-

APPROX MONTHLY NET PROFIT = 35,500/-

APPROX MONTHLY ROI = 22.46%

57

MONTHLY FIGURES OF “THE TITAN WORLD”,CUTTACK

58

BUSINESS MODEL OF “THE TITAN WORLD”

COMPANY

C & F AGENCY

TITANWORLD

PRODUCTS

PRODUCTS

REVENUE

1- Franchise2- Brand name3- Promotional support4- Store design guidelines5- Special trade offers6- Product pricing

WATCHESSUN

GLASSES ACCESSORIESREPAIR

SERVICESAFTER SALES

SERVICE

EXPENDITURES

CUSTOMERS 1- Products purchase2- Repair machineries3- Staffs remuneration4- Store maintenance5- House rent6- Electricity7- Telephone bill8- Miscellaneous

REVENUES:-

Approx total sales = 17,00,000/-

Approx purchase in a lot = 3,00,000/-

Approx profit (20%) on a lot = 60,000/-

Approx gross profit in 5 lots = 3,00,000/-

APPROX TOTAL GROSS PROFIT = 3,00,000/-

( - ) OTHER EXPENDITURES

Remuneration of staffs = 50,000/-






TOTAL = 1,40,000/-

APPROX TOTAL NET PROFIT (MONTHLY) = 1,60,000/-


59

BUSINESS MODEL OF “TANISHQ”

MONTHLY FIGURES OF “TANISHQ”, BBSR

60

EXPENDITURES

GOLDJEWELLARIES

DIAMONDJEWELLARIES

CUSTOMERSERVICE

TANISHQ

COMPANY

C & F AGENCY

PRODUCTS

PRODUCTS

REVENUE

1- Franchise2- Brand name3- Promotional support4- Store design guidelines5- Special trade offers6- Product pricing

CUSTOMERS1- Products purchase2- Staffs remuneration3- Store maintenance4- House rent5- Electricity6- Telephone bill7- Miscellaneous

COMPANY

REVENUES:-

Approx total sales = 2,50,00,000/-

Approx purchase in a lot = 50,00,000/-

Approx profit on a lot (10%) = 5,00,000/-

Approx profit on 6 lots = 30,00,000/-

APPROX TOTAL GROSS PROFIT = 30,00,000/-


House rent = 2,00,000/-

Remuneration of staffs = 70,000/-



Store maintenance & miscellaneous = 2,00,000/-

TOTAL = 5,25,000/-

TOTAL APPROX NET PROFIT (MONTHLY ) = 24,75,000/-


61

CONSUMER STUDY

Among the postpaid consumers the brand recall for “BSNL” was the highest

followed by “Airtel” and then “Reliance” as brand-1. As brand-2 the recall for

62

“Airtel” & “Reliance” is higher. As brand-3 “Reliance has the bigger pie than

others.

The usage pattern shows that in all the postpaid plans people give highest

importance to the “No of local calls they make”.

The plans with higher importance on “No of STD calls” are “BSNL one India”,

“Airtel India Home-299”, “BSNL plan-725”, “Airtel-600FV”, “Smart-joy 249” and

“RIM STD-375”.

Before choosing a postpaid connection the customers give highest importance to

the “Tariffs” & “Network coverage / connectivity, followed by “Ease of bill

deposit”, “Easy availability of connection” & “Customer service” respectively.

Customers rate “Reduction in tariffs” as the highest valuable offer provided by the

telecom operators, followed by “Free calls” ( free usage min/Rs, night packs ).

Other offers like “Less security deposit”, “less charges on VAS” & “SMS packs”

are being given lower to moderate importance.

While a customer thinks of switching to a new operator “Better network” & “Better

tariffs” are the two most important parameters which they look for in the new

operator. This is followed by “Better customer service” & “National presence” of

the operator.

RETAIL STUDY

The footfalls in the franchise outlets of the telecom operators such as “ARC” &

“Reliance Web-world” are low but the conversion to sales percentage is higher in

63

comparison to other MBOs. This is because the customers entering into the “ARC”

or “Web-world” have pre-decided mindset to take a new postpaid/prepaid

connection of the respective operator or a customer may be a subscriber of the

operator, coming fro other services such as sim replacement, easy recharge etc.

In the shopping mall aided telecom retail outlets like “M-Bazar” the footfalls are

higher in comparison to others but the sales conversion percentage is lower. This

is because people coming for shopping to the mall just visit the store either for

window shopping or for gathering some information about the products.

While buying a low range handset (<=3,000/-) people give high importance to the

features such as colour display, battery talk-time, battery standby time, MP3, FM-

Radio.

Before buying in a telecom retail, customers give very high importance to the

brand image of the shop, good location of the shop, availability of products of

different price ranges, customer handling, post sales customer service.

In order to promote the telecom operator’s products, the retailers(MBO) give

highest importance to the profit margin they get & the customer demand for the

operator’s products / services.

64

ANNEXTURE-1

CONSUMER QUESTIONNAIRE

Age: Gender: M/FEducation:

65

Occupation:Annual income:

1) Which type of cellular service you are using? a) Prepaid b) postpaid

2) Name any three top telecom brands providing cellular services 1- 2- 3-

3) Which operator’s service you are using? a) BSNL b) Airtel c) Smart d) Aircel e) TATA indicom f) Reliance-infocomm

4) What features did make you choose the present telecom service over the other operator? a) Tariffs b) Family having the same operator connection c) Friends having the same operator connection d) Individual / personal choice

5) What was the source of information of the postpaid connection? a) Print media ( news paper, magazines ) b) TV c) Radio d) Hoardings e) If others specify……………….

6) What is your average monthly investment on mobile services? a) <300 b) 300- 450 c) 450-600 d) 600-750 e) 750-1000 f) >1000

7) Rate the following parameters on the 1-5 point scale according to the weightage you give while selecting a post paid connection.1- least important 2-not much important 3- moderately important4- very important 5- extremely important 1 2 3 4 5a) Tariffb) Easy availability of connectionc) No of STD calls you maked) No of local calls you makee) No of SMS you makef) Roaming chargesg) Network coverageh) Customer servicei) Value added servicesj) Ease of bill deposit

66

k) Your status

8) How do you prefer depositing your telephone bill? a) post office b) Telecom office c) internet d) Telecom customer touch points

9) Rate the operators on the 1-5 point scale on the following parameters on the basis of your knowledge.1- very dissatisfactory 2- dissatisfactory 3- average 4- satisfactory5- very satisfactory BSNL Airtel Smart Indicom Aircel RIMa) Brand imageb) Reliability c) Tariffs (rate)d) Types of tariff planse) Network coverage/ connectivityf) Customer serviceg) Dispute/ Complain resolutionh) Easy availability of connectioni) Value added services j) Offers(free calls, less security deposit, call ratek) Ease of bill depositl) Simplicity(of tariff plans, offers)m) No of outlets/ distributorsn) Overall satisfaction level

10) Rate the following offers in 1-5 point scale, where 1-lowest 5- highest 1 2 3 4 5Less security depositLess tariffFree calls (night pack)Less charges on value added services ( news, downloads etc)Sms packsService bundled packs ( hand set with the connection )More validity periodMore talk time

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11) If u choose to switch from your present telecom service provider, rate the following basic and added features (on 1-5 point scale) you would like to have in an operator. 1- least important 2- not much important 3- average 4- very important5- extremely important 1 2 3 4 5a- Better tariffsb- Better networkc- Better service ( prompt response to complains) d- More entertainment facilitye- Better value added services ( internet, receiving e-mail )e- Personal experience f- National presence 12) Do you like promo sms? a) yes b) noIf yes which type of sms do you like? a) Informative b) Occasion specific c) Regarding the available services

13) Whether the store from which you bought the hand set promoted the postpaid connection? a) yes B) No

ANNEXTURE-2

TELECOM RETAIL QUESTIONNAIRE

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1) What is the average no of customers visiting on a weekday? Kindly tick against the appropriate numbers.

Time slots 9 am-12 12-3 pm 3-6 pm 6-9 pmNo. of customersvisiting to the shop

a) 0-25b) 25-50c) 50-75d) 75-100

a) 0-25b) 25-50c) 50-75d) 75-100

a) 0-25b) 25-50c) 50-75d) 75-100

a) 0-25b) 25-50c) 50-75d) 75-100

2) What is the average no. of customers visiting on a weekend? Kindly tick against the appropriate numbers.

Time slots 9 am-12 12-3 pm 3-6 pm 6-9 pmNo. of customersvisiting to the shop

a) 0-25b) 25-50c) 50-75d) 75-100

a) 0-25b) 25-50c) 50-75d) 75-100

a) 0-25b) 25-50c) 50-75d) 75-100

a) 0-25b) 25-50c) 50-75d) 75-100

3) What is the average no of purchases made on a weekday? a) 0-10 b) 10-20 c) 20-30 d) 30-40 e) 40-50 f) >50

4) What is the average no of purchases made on a weekend? a) 0-10 b) 10-20 c) 20-30 d) 30-40 e) 40-50 f) >50

5) How many people ask for handset bundled offer in a month? a) 0-25 b) 25-50 c) 50-75 d) 75-100 e) >100

6) Rank the best three selling low ranges of handsets. a) 1000-1500 b) 1500-2000 c) 2000-2500 d) 2500-3000 e) 3000-3500 f) 3500-4000 g) 4000-4500 h) 4500-5000

7) Kindly rate the features ( on 1-3 point scale ) those people look for in a handset in the range of 1000-3000. 1- least important 2-average 3- most important 1 2 3 4 5Colour displayBattery talk time Battery Standby timePolyphonic ring tonesMP3FM radioInbuilt loudspeakerGPRS compatibility

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8) While people visiting a shop rate their intentions on the 1-5 point scale where 1- least likely 2- likely 3- most likely 1 2 3 a) They come for window shoppingb) They come for gathering information about the products, planning to buy c) They come to check the new arrivalsd) They come to compare different shopse) They come with serious buying intention

9) Rate the following factors what customers think important before purchasing in a shop on the 1-3 point scale, where 1- least important 2- Average , 3- most important. 1 2 3 a) Brand image of the shopb) Good location of the shopc) Distance travelled to the shop d) Availability of good quality of productse) Availability of products of different price rangesf) Availability products of multiple brandg) Customer handling ( explaining to the customers)h) Post sales customer servicei) Look of the shop ( exterior & interior of the shop ) j) Assortment style ( way of displaying the products)l) Special offers like discount provided by the shop

10) While promoting the products of a telecom operator, rate the following parameters according to your importance on the 1-3 point scale, where 1- least important 2- Average 3- Most important 1 2 3 a) Brand image of the operator b) Customer demand for the operator’s productsc) Profit margin you getd) Commission provided to youe) Effective distribution channelf) Regular offers for customers ( life time, free calls, sms packs etc )g) Special trade offers for you ( ex: target achievement bonus )h) Relationship with the sales people

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11) Rate the different operators on the following parameters on 1-5 point scale, where 1- Very dissatisfactory 2- Dissatisfactory 3- Average 4- Satisfactory 5- Very satisfactory

BSNL Airtel Smart Indicom Aircel RIMa) Brand imageb) Reliabilityc) Availability of the products ( enough supply )d) Customer demand for the productse) Profit margin you getf) Commission they provideg) Effective distribution channel( gap between order & receive )h) special trade offers for you( eg- target achievement bonus) i) Relationship with the sales peoplej) Passing correct information about the products/ services

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study of postpaid consumers’

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