mobile service provider selection criteria’s and brand perceptions

Mobile Service Provider

STES

selection criteria & Brand Preference

Connecting the World

• A Mobile service provider is a company that offers transmission services to users of wireless devices through radio frequency (RF) signals rather than through end-to-end wire communication.

GROWTH

2002 2003 2004 2005 2006 2007

7 1334

52

123

228.9

Subscriber Growth Mobile (mn. subs)

1998 1999 2000 2001 2002 2003 2004 20050

2

4

6

8

10

12

14

16

0

10

20

30

40

50

6014 14

63.58

2

1.6 0.44 0.40.88 1.2 1.88 3.586.5

13

33.31

51.53

Effec

tive

char

ge (i

n Rs

. per

min

)

Mob

ile s

ubsc

ribe

r bas

e (in

Mill

ion)

TARIFFS

SUBSCRIBER BASE

Growing network

Segment

Cellular reach (2003-04) Cellular reach (End 2006)

Locations Population Locations Population

Urban ~ 1700 of 5200 towns

200 million ~ 4900 towns out of nearly 5200

towns

300 million

Rural Negligible Negligible ~ 350,000 out of 607,000 villages

450 million

Source: Recommendations on Rural Telephony - TRAI

Market Expansion

CURRENT SCENARIO• India – Fastest growing market in World .

• 4th largest mobile market growing at 6 mn

Sub/month

• Success of the pre-paid format

• Biggest challenge-decreasing ARPU

• Cut-throat competition

A Glance

OBJECTIVES

• MOST PREFERRED MOBILE SERVICE PROVIDER BRAND

• SELECTION CRITERIA FOR CHOOSING MSP.

FRAMEWORK OF STUDY

DATA COLLECTION

• Process of communication

• Instrument: Questionnaire

• Primary data

SAMPLING DESIGN

UniverseSample

PROBABILITY SAMPLINGRANDOM SAMPLING

SCOPE

• Geographical: STES, Vadgaon Campus Pune

• Demographical: Majority Youth.

• Sample Size: 200

LIMITATIONS

• Errors due to small sample size.

• Concealment of facts by respondent.

• Misinterpretation by respondent.

• Lack of knowledge of respondent.

DATA PRESENTATION

Market share

Airtel47%

Bsnl12%

Idea19%

Reliance9%

Voda-phone

9%

Tata Indicom4%

PREPAID v/s POSTPAID

prepaid73%

postpaid27%

Monthly Expenditure

0-15015%

150-30027%

300-60030%

600-100015%

1000 & above14%

SELECTION CRITERIA

Low ca

ll rate

s

better netw

ork

promotional

schemes

recharg

e convin

ience

custo

mer servi

ce

voice

quality

influence by o

thers

32 31

9 86

95

Percentage of units

USAGE

Voice calls Text SMS MMS GPRS Others

47

32

510

5

percentage of total respondents

PREMIUM FEATURES

Caller tunes30%

ringtones21%

daily alerts17%

Games13%

Roaming13%

mail6%

TELEMARKETING

Satisfied54%

want more info27%

want less info14%

don’t want5%

Customer service

Poor18%

Average46%

Good28%

Excellent 16%

SUGGESTIONS

Low call rates better network promotional schemes

customer service

voice quality

28

33

18

14

7

suggested percentage of respondents

DATA ANALYSIS

Age & brand RetentionAge group Mid (x) Brand

Retention (y)

xy x2 y2

17-20 18.5 28 218 342.25 784

20-23 21.5 56 1204 462.25 3136

23-26 24.5 25 612.5 600.25 625

26-29 27.5 3 82.5 756.25 9

29+ 30.5 4 122 930.25 16

122.5 116 2239 3091.25 4570

rxy = 0.7368

Brand LoyaltyAge group Highly loyal Moderately

LoyalBrand Switchers

Total

17-22 22 (28.13) 27 (30.06) 30 (20.81) 79

22-26 33(27.41) 34 (29.29) 10 (20.28) 77

26-above 18 (17.45) 17 (18.64) 14 (12.91) 49

73 78 54 205

= 13.06

CHI-SQUARE TEST

For significance level of 0.10 & DOF =4 x2 = 7.78

Brand loyalty and age is closely related

FINDINGS

• MOST PREFERRED MSP BRAND :

• SELECTION CRITERIA : Low call rates & Better Network• CUSTOMER SERVICE : Average

• Age and Brand Loyalty are closely related

THANK YOU