vallina idea customer care project

7/27/2019 Vallina Idea Customer Care Project.

1/35

Mahatma Gandhi Missions

College of CommerceMGM Educational Campus, Sec-18 Kamothe, Navi Mumbai-410209

Project Report

On

Idea Cellular Customer SatisfactionSurvey

Submitted to

MGM College of Commerce

BY

VALLINA ADLINE SOANS

ROLL No-25

Batch-(2011-2014)

In partial fulfillment of

Bachelor of Management Studies (BMS)

UNIVERSITY OF MUMBAI.


2/35

DECLARATION

I Ms. Vallina Adline Soans hereby declare that the project work entitled Idea customer

satisfaction survey submitted to the MGMs College Of Commerce, Kamothe is a record

of an original work done by me under the guidance of Prof. Purnendu Paul from 03-04-13

to 16-06-13, and this project is submitted in the partial fulfillment of the requirements for

the award of the degree of Bachelor of Management Studies(BMS). The results embodied

in this have not been submitted to any other University or Institute for the award of any

Degree/Diploma.

Signature

Name of the student

Vallina Adline Soans.

Date-


3/35

ACKNOWLEDGEMENT

I am thankful to my project guide (Internal) Prof. Purnendu Paul for his support which helped me

at all stages of project completion.

I am thankful to my project guide (External) Mrs. Suvarna.S.for giving an opportunity to

undertake this project and helping me in successful completion of the project.

I am also thankful to my family members and friends for their co-operation.

Name of the student.


Project guide: Purnendu paul(internal guide)

Signature:


4/35

Certificate

This is to certify that Ms. Vallina Adline Soans of MGMs College Of Commerce has

successfully completed the project work titledIdea customer satisfaction survey in partial

fulfillment of requirement for the completion BMS as prescribed by the University of Mumbai.

Name of the Student


Project guide: Purnendu paul.(internal)

Counter signed by

Signature

Name

Principal: AshwiniA. External Examiner


5/35

IDEA

Cellular ltd


6/35

Table of contents

Chapter I: title

Executive summary

Introduction

Company profile

History of company

Conceptual framework

SWOT analysis

Chapter II:

Research methodology

Chapter III:

Data analysis

Interpretation

Chapter IV:

Suggestions

Bibliography


7/35

Executive Summary

IDEA Cellular is a leading GSM mobile services operator in India with over 53 million

subscribers, under brand IDEA.

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange

(BSE) and the National Stock Exchange (NSE) in March2007. A front runner in introducing

revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer

friendly and competitive Pre Paid offerings, for the first time in India.

Ideas mission-

We will delight our customers while meeting their individual communication needs anytime,

anywhere. Ideas mission tells us what they are and what they are doing at the present. Their

values are Integrity, commitment, passion; seamlessness and speed are in perfect. Their values

are in perfect sync with their mission because these values are of paramount importance for the

successful achievement of their mission.

Ideas SWOT shows us that their parent company (Aditya Birla), existing footprint and that

obsession for innovation are their major strengths while their concentration on a few circles, their

late entry into many new circles and high debt-equity ratio can be cited as their weaknesses.

Falling regulations, growing rural market and 3G services are the factors that bring new

opportunities for Idea. New entrants (ever increasing number of telecom operators in India) and

new technology (can be an opportunity as well) pose threats for Idea. External environment

analysis shows that competitive rivalry is very high, bargaining power of customers is high,

bargaining power of suppliers is low, threat from new entrants and substitutes are also high. This

clearly reveals the fact that Idea is in an extremely competitive environment. E.g. the ongoing

tariff war in the highly competitive Indian telecom market has been taking new shape with every

passing day and it has reached new heights now. Operators have been announcing new

promotional schemes including reduction in tariffs for voice call, slashing roaming charges and

many more such lucrative offers. Recently floated idea of per second call rates has furtheraggravated competition among telecom players with every operator seemingly imitating others

for retaining their market share. Telecom sector is all set to see more severe competition. New

entrants, falling tariff rates, new technology and new regulations (mobile number portability) are

going to cause big changes to this sector.


8/35

History of Indian telecommunication.

India is the Worlds Fastest Growing industry in the world in terms of number of wireless

connections after China, with 811.59 million mobile phone subscribers. According to the World

Telecommunications industry, India will have 1.200 billion mobile subscribers by 2013.

Furthermore, projections by several leading global consultancies indicate that the total number of

subscribers in India will exceed the total subscriber count in china by 2013.

So how Telecommunication started in India..??

Well postal means of communications was the only mean communication until the year 1850. In

1850 Experimental electric telegraph started for first time in India between Calcutta and

Diamond Harbor (southern suburbs of Kolkata, on the banks of Hooghly River).

In 1851, it was opened for the use of British East India Company. Subsequently construction of

telegraph started throughout India. A separate Department was open to public in 1854. Dr.

William Shaughnessy, who pioneered Indian telegraph and telephone in India, belonged to the

Public Works Department, and worked towards the development of telecom. Calcutta or the-then

Kolkata was Chosen as it was the Capital of British India.

In early 1881, Oriental Telephone Company Limited of England opened Telephone exchanges inCalcutta (Kolkata), Bombay(Mumbai), Madras(Chennai) and Ahmadabad. On the 28th January

1882 the first formal telephone service was established with a total of 98 subscribers.

From the year 1902 India drastically changes from cable telephone to wireless telegraph, radio

telegraph, radio telephone, trunk dialing. Trunk dialing used in India for more than a decade,

were system allowed subscribers to dial calls with operator assistance.Later moved to Digital

Microwave, Optical Fiber, and Satellite Earth station. During British period all major cities and

towns in India were linked with Telephones.

So who was looking after Telecom?

In the year 1975 Department of Telecom (dot) was responsible for telecom services in entire

country after separation from Indian post & Telecommunication. Decade later Mahanagar

Telephone Nigam Limited (MTNL) was chipped out of DoT to run the telecom services of Delhi

and Mumbai.


9/35

In 1990s the telecom sector was opened up by the Government for private investment. In1995

TRAI (Telecom Regulatory Authority of India) was setup. This reduced the interference of

Government in deciding tariffs and policy making. The Government of India corporatized the

operations wing of DoT in 2000 and renamed Department of Telecom as Bharat Sanchar Nigam

Limited (BSNL).

In last 10 years many private operators especially foreign investors successfully entered the high

potential Indian telecom market. Globally acclaimed operators like Telenor, NTT Docomo,

Vodafone, Sistema, SingTel, Maxis, Etisalat invested in India mobile operators.

Wireless Communication

Pager ServicesPager communication successful launched in India in the year 1995. Pagers were looked upon as

devices that offered the much needed mobility in communication, especially for businesses.

Motorola was a major player with nearly 80 per cent of the market share. The other companies

included Mobilink, Pagelink, BPL, Usha Martin telecom and Easy call. Pagers were generally

worn on the belt or carried in the pocket.

The business peaked in 1998 with the subscriber base reaching nearly 2 million. However, the

number dropped to less than 500,000 in 2002. The pager companies in India were soon

struggling to maintain their business. While 2-way pagers could have buffered the fall, the pagercompanies were not in a position to upgrade their infrastructure to improve the ailing market.

The Indian Paging Services Association was unable to support the industry.

Pager companies in India also offered their services in regional languages also. However, the end

had begun already. By 2002, Motorola stops making or servicing pagers. When mobile phones

were commercially launched in India, the pager had many advantages to boast. Pagers were

smaller, had a longer battery life and were considerably cheaper. However, the mobile phones

got better with time and continuously upgraded themselves.

Mobile Communication

First mobile telephone service on non-commercial basis started in India on 48th Independence

Day at countrys capital Delhi. The first cellular call was made in India o n July 31st, 1995

overModi Telstras MobileNet GSM network of Kolkata. Later mobile telephone services are

divided into multiple zones known as circles. Competition has caused prices to drop and calls

across India are one of the cheapest in the world.


10/35

Most of operator follows GSM mobile system operate under 900MHz bandwidth few recent

players started operating under 1800MHz bandwidth. CDMA operators operate under 800Mhz

band, they are first to introduce EVDO based high speed wireless data services via USB dongle.

In spite of this huge growth Indian telecom sector is hit by severe spectrum crunch, corruption by

India Govt. officials and financial troubles.

In 2008, India entered the 3G arena with the launch of 3G enabled Mobile and Data services by

Government owned MTNL and BSNL. Later from November 2010 private operators started to

launch their services.

Broadband communication

After US, Japan, India stands in third largest Internet users of which 40% of Internet used via

mobile phones. India ranks one of the lowest providersof broadband speed as comparedCountries such as Japan, India and Norway. Minimum broadband speed of 256kbit/s but speed

above 2Mbits is still in a nascent stage.

Year 2007 had been declared as Year of Broadband in India. Telcos based on ADSL/VDSL in

India generally have speeds up to 24Mbit max while those based on newer Optical Fiber

technology offer up to 100Mbits in some plans Fiber-optic communication (FTTx). Broadband

growth has been plagued by many problems. Complicated tariff structure, metered billing, High

charges for right of way, Lack of domestic content, non implementation of Local-loop

unbundling have all resulted in hindrance to the growth of broadband.Many experts think future of broadband is on the hands of wireless factor. BWA auction winners

are expected to roll out LTE and WiMAX in India in 2012.

Next Generation Network (NGN)

Next Generation Networks, multiple access networks can connect customers to a core network

based on IP technology. These access networks include fiber optics or coaxial cable networks

connected to fixed locations or customers connected through Wi-Fi as well as to 3G networks

connected to mobile users.


11/35

History of Idea

Introduction

Idea Cellular (Idea) is one of the leading providers of wireless communication services in India.

The company is part of the Aditya Birla Group. It provides wireless and long distance voice and

internet services to consumer and enterprise markets. IDEA Cellular is a publicly listed

company, having listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange

(NSE) in March 2007.IDEA Cellular is a leading GSM mobile services operator in India with

over 53 million subscribers, under brand IDEA. It is a pan India integrated GSM operator

covering the entire telephony landscape of the country. The company also has a presence intelecom infrastructure market through a stake in Indus Towers and other subsidiaries. The

company primarily operates in India. It is headquartered in Mumbai, India. The company

recorded revenues of INR101, 484.1 million ($2,214.4 million) during the financial year ended

March 2009 (FY2009), an increase of 50.6% over 2008. The operating profit of the company

was INR14, 314.3 million ($312.3 million) in FY2009, an increase of 2.8% over 2008. Its net

profit was INR9, 008.7 million($196.6 million) in FY2009, a decrease of 13.6% over 2008.A

frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction

of offering the most customer friendly and competitive Pre Paid offerings, for the first time in

India.

Mission-

We will delight our customers while meeting their individual communication needs anytime,

anywhere.With a mission of delighting its customers while meeting their individual

communication needsanytime, anywhere, IDEA offers seamless coverage to roaming customers

traveling to any part of the country, as well as to international traveling customers across over

200 countries. IDEA Cellular has partnership with over 400 operators to ensure that customers

are always connected while on the move, within the country or other parts of the world.

Ideas Values-Integrity -Honesty in every action

Commitment -deliver on the promise

Passion -energized action

Seamlessnessboundary less in letter and spirit

Speed -one step ahead always


12/35

Inception and growth

In 2000, Tata Cellular was a company providing mobile services in Andhra Pradesh. When

Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these two entities was areality.

Then Idea set sights on RPGs operations in Madhya Pradesh which was successfully acquired,

helping tata have a million subscribers, and the licence to be the fourth operator in Delhi was

clinched.

In 2004, Idea (the company had by then been rechristened) bought over the Escorts groups

Escotel gaining Haryana, Uttar Pradesh (West) and Keralaand licences for three moreUP

(East), Rajasthan and Himachal Pradesh. By the end of that year, four million Indians were on

the companys network. In 2005, AT&T sold its investment in Idea, and the year after Tatas also

bid good bye to pursue an independent telecom business. And Idea was left only with onepromoter, the AV Birla group. Rs 2,700 crore adding Punjab and Karnataka circles.Modis joint

venture partner, Telekom Malaysia, invested Rs 7,000 crore for a 14.99% stake in Idea. Just

around then, Ideas subsidiary, Aditya Birla Telecom sold a 20% stake to US-based Providence

Equity Partners for over Rs 2,0000 crore.

Holding

Initially the Birlas, the Tata's and AT&T Wireless each held one-third equity in the company.

But following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sellits 32.9% stake in Idea. This stake was bought by both the Tatas and Birlas at 16.45% each.

Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-based

mobile provider, cropped differences between the Tatas and the Birlas. This dual holding by

the Tatas also became a major reason for the delay in Idea being granted a license to operate

in Mumbai. This was because as perDepartment of Telecommunications (DOT) license norms,

one promoter could not have more than 10% stake in two companies operating in the same circle

and Tata Indicom was already operating in Mumbai when Idea filed for its licence.

The Birlas thus approached the DOT and sought its intervention, and the Tatas replied by

saying that they would exit Idea but only for a good price. On 10 April 2006, the Aditya Birla

Group announced its acquisition of the 48.18% stake held by the Tatas at Rs. 40.51 a share

amounting to Rs. 44.06 billion. While 15% of the 48.14% stake was acquired byAditya Birla

Nuvo, a company in-charge of the Birlas new business initiatives, the remaining stake was

acquired by Birla TMT holdings Private Ltd., an AV Birla family-owned company.

Currently, Aditya Birla Group holds 49.1% of the total shares of the company. Malaysia

based Axiata controls a 14.99% stake in the company.
http://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/AT%26T_Wirelesshttp://en.wikipedia.org/wiki/Cingular_Wirelesshttp://en.wikipedia.org/wiki/Tata_Indicomhttp://en.wikipedia.org/wiki/CDMAhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/w/index.php?title=Aditya_Birla_Nuvo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Aditya_Birla_Nuvo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Birla_TMT_holdings_Private_Ltd.&action=edit&redlink=1http://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/wiki/Axiata_Group_Berhadhttp://en.wikipedia.org/wiki/Axiata_Group_Berhadhttp://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/w/index.php?title=Birla_TMT_holdings_Private_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Aditya_Birla_Nuvo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Aditya_Birla_Nuvo&action=edit&redlink=1http://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/CDMAhttp://en.wikipedia.org/wiki/Tata_Indicomhttp://en.wikipedia.org/wiki/Cingular_Wirelesshttp://en.wikipedia.org/wiki/AT%26T_Wirelesshttp://en.wikipedia.org/wiki/Kerala


13/35

3G

On 19 May 2010, the 3G spectrum auction in India ended. Idea paid 5768.59 crores for

spectrum in 11 circles. The circles it will provide 3G in are AndhraPradesh, Gujarat,Haryana, Himachal Pradesh, Jammu & Kashmir, Kerala, Madhya

Pradesh, Maharashtra & Goa, Punjab, Uttar Pradesh (East) and Uttar Pradesh (West).

On 28 March 2011, Idea launched 3G services in Gujarat, Himachal Pradesh and Madhya

Pradesh.The launch cities were Ahmedabad, Shimla and Indore. This makes Idea the sixth

private operator (eighth overall) to launch its 3G services in the country following Tata

Docomo, Reliance Communications, Airtel, Aircel and Vodafone.

Idea currently supports up to 21.1 Mbit/s over 2G speeds of 256 kbit/s. However, different

handsets support different speeds, from 384 kbit/s, 3.6 Mbit/s, 7.2 Mbit/s or 21.1 Mbit/s. Speeds

also depend on the 3G plan/recharge that users opt for.

The operator announced that IDEA 3G services will be available in 200 towns of 11 3G circles

by mid-April 2011, progressively growing at the rate of ten towns per day to cover 750 towns by

mid-2011 and 4000 towns by the end of 2012.

Idea cellular has announced a cut of 70% in the tariff of its 3G services.

On 23 November 2011 Idea Cellular launched two affordable 3G handsets in India: Idea 3G

Smartphone Blade priced at 7,992 and Idea 3G Smartphone priced at 5,850. Both handsets

are based on Android 2.2 Froyo.

Idea has also launched a Dual-SIM Android smartphone in India on June 15, 2012 named as IdeaID-918 at a price point of Rs.5, 994 ($108 approx.) It features Android v2.3 OS, 3.2-inch

capacitive touchscreen, 3G, Wi-Fi and 3.2 MP rear facing camera.

On 5 March 2013 Idea launched another 3G smartphone called Idea Zeal 3G which is a Dual

SIM phone with 3 Megapixel camera.

Subscriber base

Idea's subscriber base as at the end of August 2011 according to the statistics, is totalling

to 98,441,714 or 16.09% (Approx.) of the totalmobile connections in India.

Idea leads all other telecom operators in India in the MNP (Mobile Number Portability) race,

with a net gain of 10, 31,380 subscribers as on 31 August 2011.
http://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Jammu_%26_Kashmirhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Western_Uttar_Pradeshhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Tata_Docomohttp://en.wikipedia.org/wiki/Tata_Docomohttp://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/Airtel_(India)http://en.wikipedia.org/wiki/Aircelhttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Android_(operating_system)http://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Aircelhttp://en.wikipedia.org/wiki/Airtel_(India)http://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/Tata_Docomohttp://en.wikipedia.org/wiki/Tata_Docomohttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Western_Uttar_Pradeshhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Jammu_%26_Kashmirhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Andhra_Pradesh


14/35

Idea also leads all other competitors in having the most active subscriber base, scoring highly on

the VLR statistics. Visitor Location Register (VLR) is basically a temporary database of the

subscribers who have roamed into the particular area, which it serves. Each base station in the

network is served by exactly one VLR; hence a subscriber cannot be present in more than one

VLR at a time.

Customer service:

The company has its retail outlets under the "My Idea" banner. The company has also been the

first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban

areas.

Idea Cellular won the GSM Association Award for "Best Billing and Customer Care Solution"

for 2 consecutive yearsIDEA Cellular has been recognized as the 'Most Customer Responsive Company' in the Telecom

sector, at the prestigious Avaya Global Connect Customer Responsiveness Awards 2010.
http://en.wikipedia.org/wiki/GPRShttp://en.wikipedia.org/wiki/GSM_Associationhttp://en.wikipedia.org/wiki/GSM_Associationhttp://en.wikipedia.org/wiki/GPRS


15/35

Conceptual framework

Customer satisfaction: Customer satisfaction, a term frequently used in marketing, is a measure

of how products and services supplied by a company meet or surpass customer expectation.Customer satisfaction is defined as "the number of customers, or percentage of total customers,

whose reported experience with a firm, its products, or its services (ratings) exceeds specified

satisfaction goals." In a survey of nearly 200 senior marketing managers, 71 percent responded

that they found a customer satisfaction metric very useful in managing and monitoring their

businesses.

It is seen as a key performance indicator within business and is often part of a Balanced

Scorecard. In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of business

strategy. "Within organizations, customer satisfaction ratings can have powerful effects. Theyfocus employees on the importance of fulfilling customers expectations. Furthermore, when

these ratings dip, they warn of problems that can affect sales and profitability. These metrics

quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-

mouth marketing, which is both free and highly effective." Therefore, it is essential for

businesses to effectively manage customer satisfaction. To be able do this, firms need reliable

and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or service has

met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When

customers have high expectations and the reality falls short, they will be disappointed and willlikely rate their experience as less than satisfying. For this reason, a luxury resort, for example,

might receive a lower satisfaction rating than a budget moteleven though its facilities and

service would be deemed superior in 'absolute' terms

"Customer satisfaction provides a leading indicator of consumer purchase intentions and

loyalty." "Customer satisfaction data are among the most frequently collected indicators of

market perceptions. Their principal use is twofold:" "Within organizations, the collection,

analysis and dissemination of these data send a message about the importance of tending to

customers and ensuring that they have a positive experience with the companys goods and

services." "Although sales or market share can indicate how well a firm is performing currently,satisfaction is perhaps the best indicator of how likely it is that the firms customers will make

further purchases inthe future. Much research has focused on the relationship between customer

satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly

realized at the extremes." On a five-point scale, "individuals who rate their satisfaction level as

'5' are likely to become return customers and might even evangelize for the firm. (A second

important metric related to satisfaction is willingness to recommend. This metric is defined as
https://en.wikipedia.org/wiki/Marketinghttps://en.wikipedia.org/wiki/Balanced_Scorecardhttps://en.wikipedia.org/wiki/Balanced_Scorecardhttps://en.wikipedia.org/wiki/Balanced_Scorecardhttps://en.wikipedia.org/wiki/Balanced_Scorecardhttps://en.wikipedia.org/wiki/Marketing


16/35

"The percentage of surveyed customers who indicate that they would recommend a brand to

friends." When a customer is satisfied with a product, he or she might recommend it to friends,

relatives and colleagues. This can be a powerful marketing advantage.) "Individuals who rate

their satisfaction level as '1,' by contrast, are unlikely to return. Further, they can hurt the firm by

making negative comments about it to prospective customers. Willingness to recommend is a

key metric relating to customer satisfaction."

Measuring Customer Satisfaction: Measuring customer satisfaction provides an indication of

how successful the organization is at providing products and/or services to the marketplace.

"Customer satisfaction is measured at the individual level, but it is almost always reported at an

aggregate level. It can be, and often is, measured along various dimensions. A hotel, for

example, might ask customers to rate their experience with its front desk and check-in service,

with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in aholistic sense, the hotel might ask about overall satisfaction 'with your stay.'

As research on consumption experiences grows, evidence suggests that consumers purchase

goods and services for a combination of two types of benefits: hedonic and utilitarian. Hedonic

benefits are associated with the sensory and experiential attributes of the product. Utilitarian

benefits of a product are associated with the more instrumental and functional attributes of the

product (Batra and Athola 1990).

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the

state of satisfaction will vary from person to person and product/service to product/service. The

state of satisfaction depends on a number of both psychological and physical variables whichcorrelate with satisfaction behaviors such as return and recommend rate. The level of satisfaction

can also vary depending on other options the customer may have and other products against

which the customer can compare the organization's products.
https://en.wikipedia.org/wiki/Willingness_to_recommendhttps://en.wikipedia.org/wiki/Willingness_to_recommend


17/35

SWOT ANALYSIS

SWOT Analys i sAnalys i s the internal env ironment .

Strength:Attractive existing footprintThe subscriber base under brand Idea, increased from 24million asof end March 2008 to 43.02 million as of end March 2009, a growth of around79%, taking itsnational market share to 11%.Original licensee in seven of the Established Circles, providing incumbency advantages-Theestablished service areas are Delhi, Andhra Pradesh, Gujarat, Maharashtra, Haryana,Kerala,Madhya Pradesh and Uttar Pradesh (West). The New Service Areas are Uttar Pradesh(East),Rajasthan, Himachal Pradesh, Bihar, Mumbai, Karnataka, Punjab, Orissa, Chennai &TamilNadu, Jammu & Kashmir, Kolkata & West Bengal, and Assam & North East.Market leader in two of, and established positions in the remainder of, the EstablishedCircles.

Strong Distribution Channels.

High Quality Network Structure.

Innovation always comes out with new products.IDEA is the winnerof TheEmergingCompany of the Year Award' at The Economic Times Corporate Excellence Awards2008-09.The company has received several other national and international recognitions foritspath-breaking innovations inmobile telephony products & services. It won theGSMAssociation Award for Best Billing and Customer CareSolution for 2 consecutive years.Itwas awarded Mobile Operator of the Year Award -India for 2007 and 2008 at the

AnnualAsian Mobile News Awards.

A national brand

Human Resources -The Company through its participative work environment, skilldevelopmentactivities, and by championing the values of commitment, integrity, passion,seamlessness andspeed, promotes strong bonding with its employees. During the year, ithas again undertakensharing of value creation by granting another tranche of employeestock options to the eligibleemployees. The findings of OrganizationHealth Study (OHS)have been analyzed, which are veryencouraging, and concern areas are being suitablyaddressed. The employee strength onrollsstood at 6,481 as on March 31, 2009.

Attractive growthFrom 11.8 million subscribers in 2006 to 24 millionin 2008 ,then to 43millionby end of March 2009 and to 51 by end of 2009 is really a great performance fromIdea.Part of the Aditya Birla Group-IDEA Cellular is an Aditya Birla Group Company,India's firsttruly multinational corporation. The group operates in 25 countries, and is anchoredbyover 1, 30,000employees belonging to 30 nationalities. The Group has been adjudged the6thTop Company for Leaders in Asia Pacific Region' in 2009, in asurvey conducted byHewittAssociates, in partnership with The RBL Group, and Fortune. The Group has alsobeen rated


18/35

The Best Employer in India and among the Top 20 in Asia' by the Hewitt-Economic Times andWall Street Journal Study 2007.Their promoters-1.AdityaBirla Nuvo Limited 2.Grasim Industries Limited3. Hindalco Industries Limited 4. Birla TMT HoldingsPrivate Limited

Weaknesses:High Debt-Equity Ratio: The Company's Debt-Equity ratio is high as compared to its peers.Moreover, the Company needs the approval of the lenders under its financingarrangementsbefore undertaking certain significant corporate actions.

Concentration: The Company revenues are derived solely from providing mobile servicesand itis dependent on four of the Established Circles for a significant proportion of itsrevenues.

The Company had accumulated losses amounting to Rs. 19.23 billion and Rs. 17.23 billionfor

financial years 2005 and 2006 respectively. The Company may not be in a position to

paydividends until it clears its accumulated losses.

Opportunities:

The Indian telecommunication industry is expected to continue to enjoygrowth due to itslowTeledensity and increasing affordability of mobile telephone and services. The stronggrowth inthe sector continues, mainly due to expansion of telecom networks to rural India,the reduced costof entry and the reduced cost of handsets. Low penetration, moreparticularly in rural India,provides opportunity for further growth, and your company, anIncumbent GSM player with 900 MHz spectrum in about half of India is well positioned totapthis opportunity.

The contribution of service sector to the GDP has improved significantly from 29% in 1950to54% in 2005. This is primarily due to growth of information-technology andinformationtechnology enables services. This will further stimulate the demandfor mobiletelecommunication services.

The regulatory environment is improving and there is greater clarity in existing rulesandprocedures. This would enable operators in improving network quality. Also raisingof fundswill become easier due to greater predictability of operational environment.

Competition from new technologies is an inherent threat. While the planned 2100 MHzspectrumauction for 3G services will lead to additional cash outflow, it will also open newrevenue

streams. The Companys strong balance sheet and market standing, positions it toparticipateeffectively in such auction.

Threats:

There is intense competition in the Indian telecommunication industry. Idea Cellular facessignificant competition from private companies that have a pan-India footprint such as Bharti


19/35

Airtel, Tata Teleservices and Reliance Communication Ventures. Also it facescompetition fromgovernment owned companies such as BSNL and MTNL.

Alternative technology is evolving very rapidly in the telecommunications industry. Forinstance,Wi-Fiand Wi-Maxwhich allows for voice data transfer have been tested andhandsets with

such technology maysoon be available in the Indian market. Moreover,satellite communicationvoice data transport medium like Skypemay become a seriouscompetitor in the long distancevoice data transfer business.

Porters Five Forces- Analysis the external environment

1. Competitive rivalry within the industry

A.Principal competitors-

Major competition comes from the industry leader BhartiAirtel. BhartiAirtel has 24.3% customer

market share and 33.8% revenue market share.

Vodafone India has 18.8% customer market share and 20% revenue market share.

Idea Cellular has 11.2% Subscribers market share and 12.1% revenue market shareBSNL has subscriber share of 12.7% and mere 10.2% of revenue shareReliance Communications is the worst performerwith 18.9% customer market shareand pathetic11.5% revenue market share.(Data mentioned are by end of August 2009)

B . S a l i e n t s t r e n g t h s

BSNL has taken full advantage of its wide network and fixed line subscriber base,and hasestablished itself as the provider with maximum coverage over thecountry.While BhartiAirtel has dominated the scene with wide reach, innovativepackages, catchy ads,and has emerged the leader of the pack.Reliance Communications also has the wide network to its advantage.Tata Tele-services Banks on the Tata-trust factor to gain foothold in the market.Vodafone is hitting the Indian market in a huge way. They have large cashreserves at theirdisposal to wipe out the competition in future.

Weaknesses-BSNL lines are mostly marred by congestion,bottlenecks and they have failed tocapture theattention of the customers with attractive offers.Unstable range and poor customer support are Airtels minuses.Ambiguous schemes have reduced Reliances popularity.TATA Indicom has not really been able to fully capitalize its goodwill factor.


20/35

C . T h e i r b a s i s f o r c o m p e t i t i o n -

Vodafone and Idea are comparatively new entrants into the market and hencethe rest of thecompetition has anadvantage over them. Also both these brands haveundergone rebranding more

than once, and subsequently have had hiccups with peoplenot realizing the transformation.Giants like BSNL, Airtel and Reliance have widenetworks in the nooks and crannies ofthecountry, while Idea is still to open account inseveral states.

2 . B a r g a i n i n g P o w e r o f C u s t o m e r sThe bargaining power of customers determines how much customers can impose pressureonmargins and volumes. Customers bargaining power is likely to be high because

Customersuse multiple mobile services these days and hence have a good knowledge of the prosand cons of each service provider.Telecommunication industry comprises a number of operators

The industry operates with high fixed costsThe product is not much differentiated and can be replacedby substitutesSwitching to an alternative product is relatively simple and is not related to high costsCustomershave low margins and are price sensitiveThecustomer knows about the production costs of the product.

3 . B a r g a i n i n g p o w e r o f s u p p l i e r sIn this industry there is less number of suppliers compared to other industries such asthemanufacturing or textile industry.I .Mobi l e hands e t s upp l i e r s a l t hough t he r e a r e many hands e t s upp l i e r s i nt h e co un t r y, some service providers have their own handset manufacturing units operatinginthecountry like the Reliance Classic and Tata Indicom (backward integration). Some ofthetelecom companies also have some collaboration with major handset manufacturerslikeSamsung, L.G, and the Blackberry for their CDMA services.II.Some other suppliers include optical fibre suppliers and aluminium (for the constructionof towers) suppliers. Here the suppliers have a limited bargaining power.I I I .Ano t he r i mpor t an t one i s t he s o f t war e a s s i s t ance wher e t he s upp l i e r sh av e some ed ge . Major solution providers include TCS, Infosys, Wipro, etc. While Relianceand Tata havetheir own software services other players like Vodafone and Idea depend on theabovementioned software service providers.

4 . T h r e a t o f n e w e n t r a n t sIndian telecom sector provides unprecedented opportunities for foreign companies invariousareas such as 3G, virtual private network, international long distance calls, valueadded servicesetc.The market is witnessing M&A activities that are leading to consolidations in theindustry.This trend has assisted companies in expanding their reach in the Indian telecommarket tooffer better services to the customers. The Indian telecom industry has alwaysattractedforeign investors. In fact, the cumulative FDI inflow, from August 1991 to March 2007,inthis sector amounted to $3,892.19 million. This makes telecom the third largest sector toattractFDI since the liberalization.


21/35

Although the entry barriers are in place like license and high fixed costs, still we observemanynew players emerging from the state-level to national-level. This includes Aircel,Virgin, Spiceand Unitech.

5 . T h r e a t f r o m s u b s t i t u t e s

Telecom sector offers a wide range of services in India such as wireline, CDMA, GSM,internet,VoIP, IP etc.Internet telephone is emerging as a best substitute for the mobile telephony becauseit ischeaper and video can also be added. The increasing use and penetration of internet inthecountry also augments this. Other facilities on the internet such as Google talk, YahooMessenger, RediffBol are used at an unprecedented level by the youngsters of this country.Theseare the major substitutes for the mobile telephony. Maybe this is one of the reasonswhy themajor service providers also have their presence in internet service.

IDEAs strategy

Idea is not the market leader in India. They were operating in a few circles earlier andwereconsidered a regional player. Recently Idea started operations in many states as part oftheirnational roll-out plan and they have operations in 2200 towns in India. Idea has beenfocusingon value added services (VAS) from its inception which is reflected in its products.They havealways taken extra care in providing customer friendly and competitive Pre Paidofferings.Differentiation and innovation can be associated with Idea right from its beginning. Itsclearfrom the following:'Super Power', 2 Minutes Outgoing Free, Lifelongoffer, Women'sCard, 'LifetimeIdea'etcare some of the offerings of IDEA.IDEAisthe first cellular company to launch music messaging with 'CellularJockey','Background Tones', 'Group Talk',a voice portal with 'Say IDEA'and a complete suite

of Mobile EmailServices.They are also providing GPRS and EDGE services for transferring data.The new product introduced by IDEA is the EDGE enabled USB Data Card which isnamed as'NetSetter'. Initially NetSetter was offered to postpaid customers only. Nowit is availableto prepaid customers in selected circles.IDEAs partnership with IIFA for 10th Anniversary Awards, its association with MumbaiIndiansin IPL and major sought after programs in television like MTV Roadies and IdeaStarsingerclearly shows its marketing strategies. They always seek something differentand is alwaysin touch with the youth of the country as they easily switch to otherservices.Their ad campaign showing AbhishekBachhan different settings but all clearly showingtheircorporate social responsibility is great. Their approach is different from others.Idea was the first to provide one rupee STD calls in the country. Now when everyoneelse givesper second bi ll ing and al so 50 pai saper mi nu te , Idea of fers at 49 pai saper minute.Asfar as Idea is concerned it should not start a price war with Vodafone and other large playersinthe industry. This is because Vodafone has a lot ofmoney with them to suffer the losses andeventually emerge as the winner.


22/35

Research methodology

Objective of study:

Customer satisfaction with relation to idea Prepaid and Postpaid would be focus of my study,

confining mainly to rural areas. Companys services will be adjudged on the basis of many

factors.

Type of Research:

Descriptive Research: This research is the most commonly used and the basic reason for carrying

out descriptive research is to identify the cause of something that is happening. For instance this

research could be used in order to find out which age group is buying a particular brand of dress,

whether a companys market share differ between geographical regions or to discover how many

competitors a company has in their market place.

Sample size:

Probability sampling: A probability sampling method is any method of sampling that utilizes

some form of random selection. In order to have a random selection method, you must set up

some process or procedure that assures that the different units in your population have equal

probabilities of being chosen.

Scope of study:

Project type: Customer satisfaction is the most crucial factor for sustaining in the markets for thelonger period. Especially in respect of telecom services, customer satisfaction plays a pivotal

role. Idea is still expanding it services all over in urban and rural regions in India.

Primary focus: People who use idea services.

Limitations of study:

Due to sample size: The sample size of this project is particularly small. A small sample size has

a greater probability that the observation just happened to be particularly good or bad. Therefore

its harder to find significant relationships from data, as statistical tests normally require larger

sample size to justify that the effect did not just happened by chance alone.


23/35

Data Analysis

1) Which mobile network do you use?

A)ideaB)Tata DocomoC)Reliance D)Vodafone

Interpretation: 55% people are using ideas network, whereas 25% people are using Tata

Docomo , 11% people are using Reliance network and the remaining 9% of people are using

Vodafone network.

7.2

3.2

1.4

1.2

networks you use

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


24/35

2) Are you Aware about idea cellular ltd?

A)Yes B) no

Interpretation: 72% of people are aware about idea cellular ltd whereas the remaining 28% of

people are not very aware about idea cellular ltd.

8.2

3.2

0 0

aware about idea?

1st Qtr

2nd Qtr


25/35

3) From which sources do you come to know about these networks?

A)Newspapers B) Television C) friends

Interpretation: 55% came to know about idea cellular from newspapers, 17% from televison and

remaining 29% from friends.

10.5

3.2

5.5

1st Qtr

2nd Qtr

3rd Qtr


26/35

4) Have you seen any advertisement on idea cellular ltd?A) Yes B) NO

Interpretation: 74% of people had seen idea advertisement whereas 26% of people have not seen

it.

15.5

5.5

1st Qtr

2nd Qtr


27/35

5) Are you satisfied with the network idea is providing you?

A) Highly satisfied B) satisfied C) not satisfied D) neither satisfied nor dissatisfied

Interpretation: 59% people are highly satisfied with idea cellulars network, whereas 23% are

satisfied with the network, 10% are not satisfied with the network, and the remaining 9% of the

people are neither satisfied nor dissatisfied with the idea network.

8.23.2

1.4

1.2

network satisfaction

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


28/35

6) Which services of idea do you prefer or like to use?A) calling B) sms packs C) 3G D) other services E) internet

Interpretation: About 53% of people like to use or use ideas calling plan, whereas 21% of

people like to use sms packs provided by idea cellular for the customers, 9% of people use idea

3G, 8% use other services like astrology, cricket updates, beauty tips provided by idea, and the

remaining 10% of people like to use internet small packs.

8.2

3.2

1.4

1.2

1.5

Services of idea

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

5th Qtr


29/35

7) Which service do you prefer?

A) Prepaid services B) Postpaid services

Interpretation: 30% of people prefer using idea prepaid services, whereas the remaining 70% of

people prefer using postpaid services of idea.

4.5

10.5

services

1st Qtr

2nd Qtr


30/35

8) What compel you to be a part of idea?

A) Better network B) The service provider of you acquaintance

C) Better complaint handling system by the service provider

D) STD tariff option, local tariff plan and other services

Interpretation: 51% people take idea for its better network services, 15% for service provider

of their acquaintance, 12% for better complaint handling system, and the remaining 22% for

STD tariff plans and local tariff plans.

8.2

2.5

2

3.5

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


31/35

9) From how long do you use idea sim card?

A) Less than a year B) 1-3 yrs C) 3 yrs

Interpretation: 27% are using idea since less than a year, 35% are using it between 1-3

year and 39% are using idea since 3 yrs.

6.5

8.5

9.5

1st Qtr

2nd Qtr

3rd Qtr


32/35

10) Do you face network problem anytime?

A) Sometime B) never c) often

Interpretation: 39% people sometimes face network problem, whereas 45% people never

face network problem and remaining 15% often face the network issues.

6.5

7.5

2.5

1st Qtr

2nd Qtr

3rd Qtr


33/35

Interpretation

Retailer still love to work for Idea.

Good Starting,

Good sales force on company behalf.

Company should also check the Sales Man employed by the distributor.

Activation claim is a big issue.

Do branding if you promised to retailer

People face network issues.

Generally network issues are more in rural areas.

People are not very much satisfied with the call charges.


34/35

Suggestions

The company should focus more on their connectivity according to the people needs The company should focus on their services as their services are going much behind other

service providers.

The company should increase their talk time in order to gain customer preference. The customer care of idea needed to be improved. The company should improve their internet services and data card facility because

company is lagging behind Vodafone.


35/35

Bibliography

Sites:www.google.com

www.idea.com

www.ideacustomer.com

Books: Philip kotlers, millennium edition Marketing Management.

Kothari C.R Research Methodology.
http://www.google.com/http://www.google.com/http://www.google.com/http://www.idea.com/http://www.idea.com/http://www.ideacustomer.com/http://www.ideacustomer.com/http://www.ideacustomer.com/http://www.idea.com/http://www.google.com/

vallina idea customer care project

Documents