summer internship report_bhanu_sharma
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Summer Internship Project
Study of Customer Usage & Retention Strategies at T24 (A Joint Venture of Tata
Teleservices Limited and Future Group) in 18 Circles of India
Submitted in partial fulfillment of PGDM program
2015-17
Submitted by
Bhanu Sharma
23/135
Corporate Mentor Faculty Mentor
Mr. Gaurav Kapoor Ms.Shalini Virmani
Senior Manager, T24 Alliance Associate Professor
Apeejay School of Management
New Delhi
June 2016
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CERTIFICATE
This is to certify that I Bhanu Sharma Roll No. 23/135 have carried out my Summer internship
in TATA TELESERVICES LIMITED in the area Marketing. It is also certified that the work
done by me is original with due references of sources, and has not been submitted elsewhere for
the award of any diploma or degree.
_____________________
Signature
Bhanu Sharma
Date: _________________________
Countersigned by Faculty Mentor
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CERTIFICATE
This is to certify that the project work done on ―Study of Customer Usage & Retention
Strategies at T24 (A Joint Venture of Tata Teleservices Limited and Future Group)
in 18 Circles of India ―Submitted to Apeejay School of Management, Dwarka by Bhanu
Sharma in partial fulfillment of the requirement for the award of PG Diploma in
Management, is to the best of my knowledge a bonafide work carried out by him/her
under my supervision and guidance. This work has not been submitted anywhere else for
any other degree/diploma. The original work was carried out during 11th
April 2016 to
20th June 2016 in TATA TELERSERVICES LIMITED.
Date:
Seal/Stamp of the Organization
Name of the Corporate Mentor
Signature
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LIST OF CONTENTS
CHAPTER
NO.
TOPIC
PAGE NO
ACKNOWLEDGEMENT
5
EXECTUIVE SUMMARY
6 - 7
1
AREA OF INTERNSHIP AND LEARNING
OBJECTIVE
8 - 12
2
THE COMPANY PROFILE
13 - 26
3
JOB DESCRIPTION AND
FUNCTIONAL PROFILE
27 - 29
4
LEARNING EXPERIENCE AND THE
INSIGHTS GAINED
30- 44
5
CONCLUSIONS
45 – 53
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BIBLIOGRAPHY
54
5
ACKNOWLEDGEMENT
The internship opportunity I had with TATA TELESERVICES LIMITED was a great chance
for learning and professional development. Therefore, I consider myself as a very lucky
individual as I was provided with an opportunity to be a part of it. I am also grateful for having a
chance to meet so many wonderful people and professionals who led me though this internship
period.
Bearing in mind previous I am using this opportunity to express my deepest gratitude and special
thanks to the Mr. Gaurav Kapoor (Senior Manager - Alliances T24) who in spite of being
extraordinarily busy with her/his duties, took time out to hear, guide and keep me on the correct
path and allowing me to carry out my project at their esteemed organization and extending
during the training.
It is my radiant sentiment to place on record my best regards, deepest sense of gratitude to Mr.
Ashish V Singh, (Deputy Manager - Alliances T24) for careful and precious guidance which
were extremely valuable for my study both in terms of theoretically as well as practically and
giving necessary advices and guidance and arranged all facilities to make life easier for me. I
choose this moment to acknowledge his contribution gratefully.
I perceive as this opportunity as a big milestone in my career development. I will strive to use
gained skills and knowledge in the best possible way, and I will continue to work on their
improvement, in order to attain desired career objectives. Hope to continue cooperation with all
of you in the future,
Also, I would like to thank Associate Prof. Shalini Virmani, and Apeejay School of
Management who as my Faculty Guide has always motivated me to put my best foot forward by
setting high standards for me.
Lastly, I would like to thank the Almighty and My Parents for their moral support and my Life
Mentor, my cousin Himanshu Sharma with whom I shared my day-to-day experiences and
received lots of suggestions that improved my quality of work.
Sincerely,
Bhanu Sharma
Place: New Delhi
Date:
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Executive Summary
The two months of my summer internship project with TATA TELESERVICES LIMITED gave
me a platform to understand how usage of Customers are analyzed and about implementation of
Retention strategies in T24 (A Joint Venture of Future Group and Tata Teleservices). The best
part of this company i.e. why I choose only this Company is that, this company holds a very
good reputation in the Corporate World and is a part of TATA Group which is well known Blue
Chip Company in India and furthermore it gave me an immense corporate exposure that I
require. Furthermore, T24 is a kind of new business model in India, so I believe that the
experience that I will get here will help in shaping my career.
Coming to my work and my Position in this Company, I was working in a Marketing
Department of T24, which is managed by TATA TELESERVICES LIMITED. In T24 the
product is being sold at the retail outlets of Future Group like Big Bazaar, Food Bazaar, Ezone
etc and the marketing as well as the technological infrastructure is provided by TATA
TELESERVICES i.e. by TATA DOCOMO. Since TATA DOCOMO is presently operated in 18
Circles in India, so T24 is only available in those geographical areas. An interesting thing that I
came to know both T24 and TATA DOCOMO is not operated in Delhi circle.
In Fact I came to know that ―TATA DOCOMO PROVIDES NETWORK TO T24 BUT T24
TAKES TATA DOCOMO AS ITS COMPETITOR”. My Corporate Mentor along with
Deputy Manager at T24 taught me about Benchmarking and assigned me to do benchmarking for
T24 for the month of April, May, and June 2016. I was assigned to do benchmarking for 5
Circles i.e. Karnataka, Maharashtra, Andhra Pradesh & Telangana and Mumbai in various
different products of T24 i.e. 2G, 3G, STD Packs, Local Packs, Combo‘s, ISD, FRC‘s etc.
As it was a part of usage and retention strategy the next task assigned to me was Data Mining.
As per the guidelines of TRAI (Telecom Regulatory Authority of India) that if a customer is not
using his/her simcard for more than 150 Days then the Network Provider Company has the right
to disconnect the services from the customer and also have the right to forfeit the remaining
balance from the simcard, so in this my work was to find out the numbers who hasn‘t used their
numbers for more than 150 Days. Also, I have learnt how a company makes new policies and
run new campaigns and launch new plans and implement them into Market. I learnt about the
determinants and KPI‘s on the basis of which a company make plans and implement them into
the Market and how they communicate the implemented plan among the employees (to each
circle managers). The next task assigned to me to make verbiages which had to be sent to T24
customers in PAN India.
Apart from this I learnt and made MIS report for the month of June, 2016 and did data analysis,
data mining on the basis of studying usage consumption done by the Customers for the month of
March, April, May, June 2016.
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I did Data Analyst Part i.e. Out of the dump which we got from out Network Team, I did Data
Mining of around 8,02,588 Numbers and sorting them into 3G and 2G and then as per our
Retention Strategy segmenting them into different Predefined Category In this week General
Manager of T24 assigned the target to the entire team of T24 for Development of another
Business Model similar to T24 model and searching for new alliances with other companies. I
was assigned with ecommerce as well as agriculture industry for this. In the entire week I pitched
some of companies like McDonalds, Dabur India, Catapooolt.com, IFFCO etc. The Corporate
talks with these companies are in process. Indeed I gave an idea and developed a business model
with Delhi Metro Rail Corporation and GM Sir, appreciated for this but due to our limitation
of spectrum licensing in Delhi Circle this model can‘t be implemented. This Business model is
known as MVNO (Mobile Virtual Network Operator). This is a new concept in India and we
in TATA TELESERVICES LIMITED enjoy the first mover Advantage. In this Process I learnt
“Concept Selling” and how to do Business development for Blue Chip Companies and about
how to pitch new clients.
At the end, I would say happily that I have accomplished all my objectives for which I did my
internship here in TATA TELESERVICES LIMITED.
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Chapter - 1
Area of Internship
The domain that I have chosen for summer internship is marketing in Telecom Sector and more
specifically in one of the new business model i.e. T24 because I firmly believe that the exposure
I will get here will definitely help me in improving my Marketing Skills as well as in my
Analytics Skills and will be helpful in framing my career. Below is the primary reason for my
Internship in Telecom Industry.
Introduction:
India is currently the world‘s second-largest telecommunications market and has registered
strong growth in the past decade and half. The Indian mobile economy is growing rapidly and
will contribute substantially to India‘s gross domestic product (GDP), according to report
prepared by GSM Association (GSMA) in collaboration with the Boston Consulting Group
(BCG).
The liberal and reformist policies of the Government of India have been instrumental along with
strong consumer demand in the rapid growth in the Indian telecom sector. The government has
enabled easy market access to telecom equipment and a fair and proactive regulatory framework
that has ensured availability of telecom services to consumer at affordable prices. The
deregulation of foreign direct investment (FDI) norms has made the sector one of the fastest
growing and a top five employment opportunity generator in the country.
Market Size:
Driven by strong adoption of data consumption on handheld devices, the total mobile services
market revenue in India is expected to touch US$ 37 billion in 2017, registering a Compound
Annual Growth Rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm
IDC. According to a study by GSMA, smart phones are expected to account for two out of every three
mobile connections globally by 2020 making India the fourth largest Smartphone market.
The broadband services user-base in India is expected to grow to 250 million connections by
2017, according to GSMA.
India added the highest number of net mobile phone subscriptions of 13 million during the third
quarter of 2015.
International Data Corporation (IDC) predicts India to overtake US as the second-largest
Smartphone market globally by 2017 and to maintain high growth rate over the next few years as
people switch to smart phones and gradually upgrade to 4G.
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In spite of only 5 per cent increase in mobile connections in 2015, overall expenditure on mobile
services in India is expected to increase to US$ 21.4 billion in 2015, led by 15 per cent growth in
data services expenditure, as per research firm Gartner.
The Indian telecom sector is expected to generate four million direct and indirect jobs over the
next five years according to estimates by Randstad India. The employment opportunities are
expected to be created due to combination of government‘s efforts to increase penetration in
rural areas and the rapid increase in Smartphone sales and rising internet usage.
Government Initiatives:
The government has fast-tracked reforms in the telecom sector and continues to be proactive in
providing room for growth for telecom companies. Some of the other major initiatives taken by
the government are as follows:
The Telecom Regulatory Authority of India (TRAI) has directed the telecom companies
or mobile operators to compensate the consumers in the event of dropped calls with a
view to reduce the increasing number of dropped calls.
With a view to encourage consolidation in the telecom sector, the Government of India
has approved the rules for spectrum trading that will allow telecom companies to buy and
sell rights to unused spectrum among themselves. The Union Cabinet chaired by the
Prime Minister, Mr. Narendra Modi, gave its approval to the guidelines on spectrum
sharing, aimed to improve spectral efficiency and quality of service, based on the
recommendations of the Telecom Regulatory Authority of India (TRAI).
The Central Government‘s several initiatives to promote manufacturing in the country,
such as ‗Make in India‘ campaign appears to have had a positive impact on mobile
handsets manufacturing in the country. Companies like Samsung, Micromax and Spice
had been assembling handsets in the country already. Xiaomi and Motorola, along with
Lenovo have also started assembly of smart phones in India. Firms like HTC, Asus and
Gionee too have shown interest in setting up a manufacturing base in the country.
The Government of India plans to roll out free high-speed Wi-Fi in 2,500 cities and
towns across the country over the next three years. The program entails an investment of
up to Rs 7,000 crore (US$ 1.06 billion) and will be implemented by state-owned Bharat
Sanchar Nigam Ltd (BSNL).
Road Ahead: India will emerge as a leading player in the virtual world by having 700 million
internet users of the 4.7 billion global users by 2025, as per a Microsoft report. With the
government‘s favorable regulation policies and 4G services hitting the market, the Indian
telecommunication sector is expected to witness fast growth in the next few years.
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Objectives of the Study:
The main objective of the Study is to analyze the customer Usage and Retention strategies used
in T24. The sub-objectives of the study are stated as follows:
To study the usage pattern of Customers in T24.
To analyze the key determinants of customer retention in T24.
To identify management practices associated with excelling at customer retention in T24.
To assess the level of perceived quality of services offered by T24.
To study the customer response on various marketing mix strategies adopted by T24.
To work out on the growing challenges facing by T24.
To study the Operational working style in Telecom Sector.
Literature Review
Developing retention strategies based on customer profitability in
telecommunications: An empirical study by Xevelonakis, Evangelos
Research evidence shows that telecommunications companies fail to make their CRM efforts pay
off. This is probably due to a lack of capability to develop effective customer strategies based on
customer profitability. Reducing the churn rate in the industry is not enough. Companies must be
able to plan and execute profitable campaigns, taking into account both customer risk and
customer profitability. Controlling and evaluating the campaign's results is a crucial factor. In
this paper, this deficiency is addressed by proposing a framework for building effective customer
strategies based on customer behavior, customer profitability and customer risk. Empirical
results are analyzed and discussed.
A marketing approach for customer retention by Larry J.
Rosenberg (Associate Professor of Marketing, University of Massachusetts
at Amherst),John A. Czepiel (Associate Professor of Marketing at the
Graduate School of Business Administration, New York University)
Consumer marketing companies have lavished more resources on attracting new
customers than on satisfying old customers. In today's low growth and highly competitive
marketplace, however, customer retention increasingly joins customer getting as an
important area of analysis and planning. Marketers can better cultivate relationships with
existing customers in these ways: designing an optimal customer portfolio, formulating a
special marketing mix, and modifying the marketing organization. The balancing of
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marketing efforts between winning new customers and holding onto old ones will prove
instrumental in pursuing sales and profit growth in the 1980s.
An exploratory investigation of customer loyalty and retention in
cellular mobile communication by Seth, Anita Momaya, KiranGupta,
H. M.
Cellular mobile industry has undergone rapid changes as a result of liberalization and
globalization. In such a ever changing scenario, expansion and maintaining the loyal customer
base seems to be a great challenge for the mobile service providers. As a result of increased
competition, customer loyalty and retention have become important goals for mobile service
operators. Reacting to the pressures, most of the cellular mobile service providers are trying to
attract subscribers by not only reducing their tariff rates but also giving attention to the quality of
services delivered. In this context the present paper focuses on the customer loyalty and retention
in cellular mobile communication. Literature review was carried out covering the theoretical and
empirical work on the subject and exploring the relations with service quality. Exploratory
interviews were conducted in order to gain practical insights of the subject. Based on the
literature review and findings from the interviews, this paper presents a rich research agenda for
further research.
Assessing customer retention strategies in mobile telecommunications:
Hybrid MCDM approach by Don Jyh‐Fu Jeng (Institute of International
Management, National Cheng Kung University, Tainan City,
Taiwan),Thomas Bailey (Canada China Business Council, Institute of
International Management, National Cheng Kung University, Tainan
City, Taiwan)
As wireless penetration continues to increase worldwide, competitors in the mobile
telecommunication industry are changing their strategies from a growth model to a value‐added
one. The companies that can attract and retain customers in this highly competitive and
increasingly saturated market stand poised to make considerable gains, and thus customer
retention is an important field of study in this maturing market. Using the Canadian mobile
phone market as an example, this work aims to study the major motivators of customer retention
and their interrelationships, and assess the value that customers perceive with regard to the
related advertising.
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Design/methodology/approach
– Based on a literature review and expert validation, the motivators of customer retention are
divided into three dimensions and eight criteria. A systematic hybrid multiple criteria
decision‐making (MCDM) method that combines the decision making trial and evaluation
laboratory (DEMATEL) technique and the analytic network process (ANP) is used to examine
the customer retention framework and to evaluate the promotional strategies used by various
market players.
Findings
– The interdependence relation shows that phone service quality, customer service quality, and
phone plan quality are three major motivators in terms of causality with regard to brand image,
customer service quality, and complaint management, while phone service quality has become a
hygiene factor with regard to customer satisfaction and retention. The findings from an
assessment of the promotional strategies used by the major players in the Canadian mobile
telecoms industry suggest that well‐financed foreign entrants pose a risk to the major domestic
carriers, and that successful promotional strategies will require strong leverage of their existing
price and quality advantages.
Originality/value
– This work adopted a hybrid MCDM approach to examine a major strategic issue in mobile
telecoms, – i.e. customer retention – and demonstrated the strengths of using this method to
investigate rapidly changing markets. The relative importance of the motivators of satisfaction
and retention is investigated, and a strategy for customer retention in the mobile telecoms
industry is provided to managers.
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Chapter 2
Profile of the Organization
Tata Teleservices Limited spearheads the Tata Group‘s presence in the Telecom Sector. The Tata
Group includes over 100 companies, over 450,000 employees worldwide and more than 3.8
million shareholders.
Incorporated in 1996, Tata Teleservices Limited was the pioneer of the CDMA 1x technology
platform in India, embarking on a growth path after the acquisition of Hughes Tele.com (India)
Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. Over the last
few years, the company has launched significant services CDMA mobile operations in January
2005 under the brand name Tata Indicom, market-defining wireless mobile broadband services
under the brand name Tata Photon in 2008 and 2G GSM services under the brand name Tata
DOCOMO in 2009.
Tata Teleservices Limited also has a significant presence in the 2G GSM space, through its joint
venture with NTT DOCOMO of Japan, and offers differentiated products and services. Tata
DOCOMO was born after Tata Group‘s strategic alliance with Japanese telecom major NTT
DOCOMO in November 2008. Tata DOCOMO received a pan-India license to operate GSM
telecom services and rolled out GSM services in all the 18 telecom Circles where it received
spectrum from the Government of India in the quick span of just over a year.
One of the key milestones in October 2011 was the brand integration exercise at TTL, which saw
the Company‘s many brands being consolidated under its single flagship brand, Tata DOCOMO.
This helped TTL leverage the benefits of brand synergies and capitalize on its vast retail and
distribution network, which is the largest amongst all private telecom operators in the country.
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Tata DOCOMO marks a significant milestone in the Indian telecom landscape, and has already
redefined the very face of telecoms in India, being the first to pioneer the per-second tariff option
part of its ‗Pay for What You Use‘ pricing paradigm.
Tata Teleservices Limited also became the first Indian private telecom operator to launch 3G
services in India under with the launch of services in November 2010 in all nine telecom Circles
where the company bagged the 3G license. In association with its partner NTT DOCOMO, the
Company finds itself favorably positioned to leverage this first-mover advantage. With 3G, Tata
DOCOMO has begun to redefine the very face of telecoms in India. Tokyo-based NTT
DOCOMO is one of the world‘s leading mobile operators in Japan, the company is the clear
market leader, used by nearly 55 per cent of the country‘s mobile phone users.
TTL entered into a strategic partnership agreement with Indian retail giant Future Group to offer
mobile telephony services under a new brand name T24, on the GSM platform. Tata Teleservices
also has a strategic tie up with Virgin Mobile that primarily caters to youth segment offering
mobility services on GSM platform.
Tata Teleservices is the undisputed market leader in the fixed wireless telephony market amongst
private operators. In the wireless mobility space, the company in the past has been rated as the
‗Least Congested Network‘ in India for eight consecutive quarters by the Telecom Regulatory
Authority of India through independent surveys.
Today, Tata Teleservices, along with Tata Teleservices (Maharashtra) Limited, has a reach in
more than 450,000 towns and villages across the country, with a bouquet of telephony services
encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wireline
Services.
In December 2008, Tata Teleservices announced a unique reverse equity swap strategic
agreement between its telecom tower subsidiary, Wireless TT Info-Services Limited, and Quippo
Telecom Infrastructure Limited with the combined entity kicking off operations with 18,000
towers, thereby becoming the largest independent entity in this space and with the highest
tenancy ratios in the industry. Today, the combined entity which has been re-christened as VIOM
Networks has a portfolio of nearly 60,000 towers.
Vision
Be one of India‘s Top 3 Telecom Companies by 2015.
Mission
Customer Centricity is Intrinsic to our Culture.
To Develop Deep Understanding of the unique needs of our customers.
Deliver pioneering Products and Services of outstanding quality and values.
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Delight our Customers with great experiences at every Touch Point.
Values:
Integrity: Fair, Honest and Transparent in all dealings.
Excellence: Highest possible standards in quality of goods and services
Understanding: Care, Respect and compassion for customers and colleagues.
Unity: Build strong relationship with partners and customers worldwide.
Responsibility: What comes from the people goes back to the people many times over.
Brands in TATA TELESERVICES LIMITED:
TATA DOCOMO: Tata DOCOMO is an Indian cellular service provider on
the GSM, CDMA and platform-arising out of the strategic joint venture between Tata
Teleservices and NTT Docomo in November 2008. DOCOMO stands for Do
Communications over Mobile Network. It is the country's seventh largest operator in
terms of subscribers (including both GSM and CDMA) and is the fastest growing
network in India. Tata DOCOMO offers both prepaid and postpaid cellular
phone services. It has become very popular with its one-second pulse especially in semi-
urban and rural areas.
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Future Group, led by its founder and Group CEO, Mr.Kishore Biyani, isan Indian
private conglomerate, headquartered in Mumbai. While retail forms the core business activity of
Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and
entertainment, brand development, retail real estate development, retail media and logistics.The
company is known for having a significant prominence in Indian retail and fashion sectors, with
popular supermarket chains like Big Bazaar and Food Bazaar, lifestyle stores like Brand Factory,
Central etc. Future Retail (initially Pantaloons Retail India Ltd (PRIL)) and Future Lifestyle
Fashions are the two operating companies of Future Group, are among the top retail companies
listed in BSE with respect to asset and in NSE with respect to market capitalization.
Led by its flagship enterprise, Pantaloons Retail, the group operates over 16 million square feet
of retail space in 73 cities and towns and 65 rural locations across India. Headquartered in
Mumbai (Bombay), Pantaloons Retail employs around 30,000 people. The company follows a
multi-format retail strategy that captures almost the entire consumption basket of Indian
customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and
Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a
hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and
convenience of modern retail. In 2008, Big Bazaar opened its 100th store, marking the fastest
ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in
Kolkata, Hyderabad and Bangalore.
The group‘s speciality retail formats include supermarket chain – Food Bazaar, sportswear
retailer - Planet Sports, electronics retailer - Ezone, home improvement chain - Home Town and
rural retail chain, Aadhaar, among others.
Future Capital Holdings, the group‘s financial arm provides investment advisory to assets worth
over $1 Billion that are being invested in consumer brands and companies, real estate, hotels and
logistics. It also operates a consumer finance arm with branches in 150 locations.
Other group companies include, Future Generali, the group‘s insurance venture in partnership
with Italy‘s Generali Group, Future Brands, a brand development and IPR company, Future
Logistics, providing logistics and distribution solutions to group companies and business partners
and Future Media, a retail media initiative.
The group‘s presence in Leisure & Entertainment segment is led through, Mumbai-based listed
company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling
Co. and family entertainment centres, F123. Through its partner company, Blue Foods the group
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operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti
Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.
Future Group‘s joint venture partners include, US-based stationery products retailer,
Staples and Middle East-based Axiom Communications.
Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the group‘s core value of ‗Indianness.‘ The
group‘s corporate credo is, ‗Rewrite rules, Retain value
Rewrite Rules, retain Values
Vision
―Future Group shall deliver Everything, Everywhere, Every time for Every Indian consumer in
the most profitable manner.‖
Mission
1. We share the vision and belief that our customers and stakeholders shall be served only
by creating and executing future scenarios in the consumption space leading to economic
development.
2. We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segment- for classes and for masses.
3. We shall infuse Indian brand with confidence and renewed ambition.
4. We shall be efficient, cost- conscious and committed to quality in whatever we do.
5. We shall ensure that our positive attitude, sincerity, humility and united determination
shall be the driving force to make us successful.
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Core Values
Indianness: confidence in ourselves.
Leadership: to be a leader, both in thought and business.
Respect & Humility: to respect every individual and be humble in our conduct.
Introspection: Leading to purposeful thinking.
Openness: to be open and respective to new ideas, knowledge and information.
Valuing and nurturing relationship: to build long term relationships.
Simplicity & positivity: Simplicity and positivity in our thought, business and action.
Adaptability: to be Flexible and adaptable, to meet challenges.
Brands in Future Group
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About the Brand:
T24 is an Indian cellular service provider formed in February 2010 on the GSM platform-arising
out of a joint venture between Tata Teleservices Limited (TTSL) and Future Group. T24
Mobile offers 3G services via Tata DoCoMo HSPA+ network. Tata Teleservices and Future
Group took forward this insight and launched T24, a unique telecom service in 2010. T24 allows
you to shop-till-you-drop and get free talktime along with it. Over 3 million users are already on
a shopping spree with T24. And more than 136 Cr worth of free talktime has already been given
out to a million shoppers.
T24 is a kind of a business model called MVNO (Mobile Virtual Network Operator) launched
first time in India. It is a loyalty Program of Future Group and is exclusively only for the
Customers of Future Group. In T24 the sales Part is managed by Future Group on their outlets
i.e. on Big Bazaar, Ezone, Food Bazaar, Central Zone etc and the Marketing and Technological
Infrastructure is managed by Tata Teleservices Limited. Since Tata DoCoMo (Subsidiary of
TATA TELESERVICES LIMITED) has its network of operation in 18 Circles, So T24 is
operational in those 18 Circles. The Profit from this Business is shared between these two
companies on the predefined agreed Memorandum of Understanding.
Why T24?
T24 is one network that helps customers of Future Group to do much more than just stay
connected with your loved ones. With this network customers get to talk as well as shop with
their heart out! The Customers gets the best talk time packs with T24 as compared to any other
network, which acts as an USP for T24.
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For Customers:
Customers of Future Group enjoys the maximum benefit from this T24. As Every time they
made Purchase at any Outlet of Future Group anywhere in India (where Tata Docomo is
operational), they get instant Recharges in their T24 Sim Card which also justifies the wording of
T24 “Talk More, Shop More” or “Shop More, Talk More”. Apart from Shopping Recharges,
when customer recharges from T24 app they get amazing deals, Shopping Discounted Coupons
and these coupons they can redeem at any leading Future Group Outlets. Also the USP of T24 is
that ―The Products of T24 are designed in such a way that none of competitors (Airtel,
Vodafone, Idea, Aircel etc) can compete with it. Infact T24 uses the network of Tata DoCoMo
but still the offers of T24 is the much lower than Tata DoCoMo. So in telecom industry T24
offers the Best Products in the entire India.
For Tata Teleservices Limited:
On the other side Tata Teleservices Limited Enjoys a new segment of Business and first mover
advantage over the competitors. Having purchased the excess of Spectrum License in 18 Circles
of India, Tata Teleservices Limited has the capacity to run new ventures or Brand under their
name. With T24, Tata Teleservices Limited doesnot have to spend anything on their
Technological Infrastructure and for Marketing Department, Tata Teleservices have one of the
best pools of Expertise Human Resources who are capable of managing any project. In Short,
This is a win win situation for Tata Teleservices Limited as they have everything in their favor
and enjoys extra revenue with the same resources.
For Future Group:
While Considering from Future Group Point of view, they enjoys a new concept for Customer
Loyalty Program. Indeed Future Group enjoys First Mover Advantage over their competitors to
run this type of Loyalty Program. With the help of Technological Infrastructure which is
Provides by Tata Teleservices Limited they can easily track their customers and retain them by
providing Shopping Offers accordingly. This Loyalty Program also helps Future Group to earn
extra source of revenue and creation of a new Brand under their name. As compared with other
Loyalty Program (Payback Loyalty Program, Future Bazaar Club), this Loyalty Program results
into most effective and profitable one for them. Also an interesting point to note that, Future
Group also have not to invest much on this because they also have their Retail setup and this T24
Business model is compatible with their Infrastructure as it requires only desk for its operations.
Network Coverage:
T24 mobile services are available in the following telecom circles:
21
State 2G 3G
Andhra Pradesh & Telangana
Assam
Bihar & Jharkhand
Delhi
Uttar Pradesh (East)
Gujarat
Haryana
Himachal Pradesh
Jammu and Kashmir
Karnataka
Kerala
Kolkata
22
State 2G 3G
Madhya Pradesh & Chhattisgarh
Maharashtra & Goa
Mumbai
North-East
Orissa
Punjab
Rajasthan
Tamil Nadu
West Bengal
Uttar Pradesh (West)
23
Fig.1 Network Coverage Area of T24
24
Products of T24:
1) STD Packs
2) Local Packs
3) Minutes Packs
4) GRPS Packs
5) SMS Packs
6) ISD Packs
7) Roaming Packs
8) VAS (Value Added Services)
9) 2G Packs
10) 3G Packs
11) Night Calling Packs
Current Challenges:
Retaining the T24 Customers.
On boarding the Competitors Consumers to T24 Network.
Increasing the usage of T24 by customers.
Making the current customers loyal towards T24.
Spreading awareness among T24 customers about T24 Products and offers.
Widening the network of Retailers.
Acquisition of Customers.
Future Prospects:
Mission to achieve 50 Lac Active users of T24.
Making T24 one of the best Mobile Operator in Telecom Industry.
Location Based offerings in near Future.
More Convenience of shopping for T24 Customers.
25
Organization Structure in T24:
CEO
Sales Head
Usage and Revenue
Head
Brand Head
Customer Care Head
General Manager
Senior Manager
Deputy Manager
Deputy Manager
26
SWOT Analysis:
Strengths:
New Concept in the Indian market.
First Mover Advantage.
Aggressive Pricing of Products.
Small Organization Structure enables Quick Decisions.
Free Talktime on every shopping.
Instant Gratification of Talktime.
Weakness:
No Postpaid Service offering.
Less awareness to Customers as a Brand.
Advertisement Restricted to Future Group Stores only.
No Network Coverage in 5 Circles including Delhi/NCR.
No 3G Network in 8 Circles.
Opportunities:
More Ease of shopping for T24 Customers.
Large Customer Base of Future Group.
Launching 4G Network Coverage in near future.
Location Based offerings in near Future.
Threats:
New entrants in MVNO sector.
27
Chapter – 3
JOB DESCRIPTION AND FUNCTIONAL PROFILE
JOB DESCRIPTION
To Help and Support Marketing Team in TATA TELESERVICES LIMITED in their day
to day work.
To Perform Base Management activity for T24 Customers.
To Capture VOC, Skills to Perform Data Analysis, Data Mining, Preparation of MIS.
To build the seeding database from internal and external data sources.
Team Coordination Skills, interpersonal skills.
Ability to multi tasks and switch gears while maintaining priorities.
To share and innovate ideas to streamline operational challenges.
Will be responsible for analyse the Data.
Have a strong hold on MS Office and on Google Analytics.
Comfortable with working on Campaign management tool like SAS.
Have a tendency to bring niche Marketing Concepts which could be applied to business.
To Perform Alliance building Activity.
28
FUNCTIONAL PROFILE
TASK ASSIGNED TO ME
To capture V.O.C (Voice of Customer) in the Circles of West Bengal, Punjab, Haryana,
Mumbai, Uttar Pradesh East, Uttar Pradesh West in order to know about Customers
Perception towards T24 and making reports thereafter.
To do Benchmarking in Top 5 Revenue Earning Circles of T24 Mobile for the Month of
April May.
To make Verbiages for Pan India T24 Customers for the Month of April, May, June.
To Do Data Analytics and Data Mining on T24 Customers in order to know about their
usage and making Reports for the Month of April May.
To Edit/ Renew Old Campaigns on SAS Platform for the Month of April, May, June.
To Prepare MIS in the Month of June.
To Search out the Current Trend in India for Design of Verbiages for the Month of April,
May.
To Do Data Mining and Analytics on T24 Customers and finding out the customers who
are not using T24 services for more than 150 Days in order to forfeit their Balance.
To make Calendar for the Month of May/June which contains the Schedule of Sending
Verbiages to T24 Customers in Pan India on Daily Basis.
To Make Calendar for the Month of June which contains Schedule of Sending Verbiages
to Retailers in all the Circles of T24.
To make use of SAS and update Products/offers of T24 as according to New Service Tax
w.e.f 1 June 2016.
To make use of Google Analytics in order to Track our Customers on the basis of
Verbiages Sent for the month of April, May.
To Do Data Analytics and Data Mining on T24 Customers in order to Perform Retention
Strategy for the Month of April, May, June.
To Segment the Customers of T24 into different Categories and carry out Count for
Further Process as a Part of Retention Strategy for the Month of April, May, June.
To Do VOC (Voice of Customers) as a Part of Retention Strategy on Segmented
Customers of T24 in order to find out the reason for not using Internet Packs of T24 in
the month of June.
To Search for New Alliance Partners for TATA TELESERVICES LIMITED and
pitching the Prospective Clients on the basis of Concept Selling.
29
My Reporting Structure:
In Tata Teleservices Limited my Reporting was directly inline to Mr. Gaurav Kapoor (Senior
Manager – T24 Alliance) and dotted line to Mr. Ashish V Singh (Deputy Manager – T24
Alliance) and to Mr. Anil Kumar (Deputy Manager – T24 Alliance).
Senior
Manager
Deputy
Manager
Deputy
Manager Summer
Intern (Me)
30
Chapter - 4
LEARNING EXPERIENCE AND THE INSIGHTS GAINED
The functional areas are often measured differently and perhaps have differing priorities. For
example, marketing department focuses on average revenue per unit (ARPU), Sales is focused
on new customer acquisition, and service is focused on reducing churn and increasing retention.
These are certainly all key activities that most of the Telecom Companies in India performs.
Importance of Usage and Retention:
The Indian telecom sector has grown enormously in last few years. The number of players as
well as the level of competition is continuously increasing. Therefore, it has become necessary to
understand the expectations of customers and provide the best of the services to them. This is not
only important for attracting new customers but also helps in retaining them. The players are
required to understand the customer retention strategies for Indian mobile telecommunication
sector. The mobile telecommunication industry being a service oriented industry has to sustain
on the quality of customer service. The survival and growth of a mobile service provider not only
depend upon its ability to provide qualitative services to its customers on a sustained basis, but
also on the basis of building a long-term mutually beneficial and trust-worthy relationship with
its customers.
Usage Definition:
The Term usage refers to the act, manner, pattern or the amount of consumption done by the
customers in using of the services.
Importance of Understanding Customer Usage:
Customer Usage helps in understanding the pattern of consumption done by customer.
Customer Usage helps in knowing about the expectation of the Consumer.
It helps in making plans and policies regarding making product and offering services.
Usage helps in framing Retention Strategy for the consumers.
Usage helps in making strategies for consumers.
Process of Understanding Customer Usage in T24:
In T24, Customer Usage is determined by the amount of usage done by the consumers which is
collected and recorded by IN in the form of CDR reports as well as REC reports. These reports
contain all the records of transactions done by consumer. Also these reports are generated on
daily basis and are clubbed either at the end of a month or on weekly basis depending upon the
configuration done by the company. The CDR Report indicates Call Detail Record which
31
contains history of all the transaction done by the consumer while REC contains the sum of all
the transaction done by the consumer which is divided into different categories like M.O.U, SMS
Count, Circle ID, Total Outgoing Calls, Total Incoming Calls, Data Usage, Closing Balance,
Total Incoming Roaming usage, Total Outgoing Roaming Usage etc. These two file forms the
base on the basis of which further planning of action is done that can be in the form of Designing
of Product and Services, Implementation of Retention Strategies, upgrading, up selling and cross
selling of Products to consumers etc. Below is the screenshot of REC Report of 400,000
Customers in all the 18 Circles of India for the month of May 2016.
Figure 1 REC Report for the Month of May
On the basis of understanding of usage pattern of consumers, the following strategies are
initiated:
Upselling/ Upgrading: Upselling is marketing technique whereby a seller induces
the customer to purchase more expensive items, upgrades or other add-ons in an attempt
to make a more profitable sale. While it usually involves marketing more
32
profitable services or products, it can be simply exposing the customer to other options
that were perhaps not considered.
For Instance: In T24, as according to analysis of usage consumption of a customer, If a
customer uses 1 GB of 3G Data Pack of Rs 199 on a monthly basis, so in order to upgrading
his/her usage, a manager can pitch him with 1.25 GB of 3G Data Pack @ Rs 215.
Cross Selling: Cross-selling is the action or practice of selling an additional product or
service to an existing customer. In practice, businesses define cross-selling in many
different ways. Elements that might influence the definition might include the size of the
business, the industry sector it operates within and the financial motivations of those
required to define the term.
The objectives of cross-selling can be either to increase the income derived from the client or
clients or to protect the relationship with the client or clients. The approach to the process of
cross-selling can be varied.
Unlike the acquiring of new business, cross-selling involves an element of risk that existing
relationships with the client could be disrupted. For that reason, it is important to ensure that the
additional product or service being sold to the client or clients enhances the value the client or
clients get from the organization. In practice, large businesses usually combine cross-selling
and up-selling techniques to increase revenue.
For Example: In T24, as per the usage consumption pattern observed if a customer uses more of
Data Pack on monthly basis and less amount of Calling Packs, so by the use of Cross Selling
Technique, a manager can pitch customer a combo pack which contains both Data Pack as well
as Calling Pack.
Open Market Products/Offers: Open Market products/offers are those products which
are available for all the users irrespective of the group in which they lie.
For Example: On the basis of usage consumption pattern, a new product can be made
and offered in open market for the consumers.
Segmented Products/Offers: Segmented Products/ offers are those which are
exclusively available for selected customer group who have similar attributes.
For Example: As per the usage pattern studied, a manager can divide the similar set of
customers having same usage consumption pattern into one segment and on the basis of
each segments offers can be pitched to every customer.
33
Retention Definition:
Customer retention refers to the activities and actions companies and organizations take to
reduce the number of customer defections. The goal of customer retention programs is to help
companies retain as many customers as possible, often through customer loyalty and brand
loyalty initiatives. It is important to remember that customer retention begins with the first
contact a customer has with a company and continues throughout the entire lifetime of the
relationship. Customer retention is a simple concept—happy customers who feel important and
are regularly communicated with in the right way will keep coming back. It is a major
contributing factor in the net growth rate of businesses.
Why Customer Retention is Important: Retaining the customer is very important for a
business as
Acquiring new customers can cost as much as five times more than satisfying and retain-
ing current customers.
Customer Retention plays a major contribution in the growth of Company.
A 2% increase in customer retention has the same effect as decreasing costs by 10%.
Depending on the industry, reducing your customer defection rate by 5% can increase
your profitability by 25 to 125%.
Customer profitability tends to increase over the life of a retained customer.
Satisfied customers are most likely to share their experiences with other people to the
order of perhaps five or six people. Equally well, dissatisfied customers are more likely to
tell another ten people of their unfortunate experience.
Customer Retention helps in knowing about the future needs of the customers.
Customer Retention holds true the 80-20 rule for a company.
Ways by which Customer Retention can be done:
Set customer expectations – Set customer expectations early and a little lower than you
can provide to eliminate uncertainty about the level of your service and ensure you always
deliver on your promises.
Becomes the customers’ trusted advisor – You need to be the expert in your particular
field, so that you can gain customers‘ trust and build customer loyalty.
Use relationships to build trust – Build relationships with customers in a way that fosters
trust. Do this through shared values and fostering customer relationships.
Take a proactive approach to customer service – Implement anticipatory service so that
you can eliminate problems before they occur.
34
Use social media to build relationships – Use LinkedIn, Twitter, and Face book to
connect and communicate with customers and give them a space for sharing experiences
with your company, so they can become brand ambassadors.
Go the extra mile – Going above and beyond will build strong relationships with
customers and build long-term loyalty by paying attention to their needs and issues.
Make it personal – Personalized service improves customer experience and is something
customers are expecting and demanding. Make their experience personal to strengthen the
bond with your brand.
Customer Retention Strategies used in T24:
There are many different kinds of Retention Strategies (Model) that are being used by T24
(Tata Teleservices Limited) but in my internship Period I came across with two main Retention
Strategies that are being implemented by Marketing Team of T24. Interestingly, I learnt that
these Strategies are designed and implemented as according to Market Scenario, On the basis
of Customer Behavior, Organization Goal etc. The First Retention (Model) Strategy that I
observed is
Panic Model: This Model is sometimes also known as Pro Active Retention Strategy
in T24 (Tata Teleservices Limited). Panic Model is commonly used in Telecom Industry
and different companies term it with different names. In T24, the logic behind calling this
as Panic Model is because Panic is a situation or a state of sudden sensation
of fear that produces uncontrollable events or irrational behavior and that often spread
quickly through a group of people. In simple lay man term ―Panic is state of Alarm for an
organization‖
Panic Model is a high level of business strategy logically designed which includes very complex
algorithms and matrices to predict customer behavior. The main objective of Panic Model is to
retain the customer before they falls into churn state or change their existing category into a new
category which is designed on the basis of usage pattern studied.
There are certain Key Performance Indicators on the basis of which this panic Model is
designed and implemented. The Following are the KPI‘s:
Usage Days
Non Usage Days
R.E.C
Non R.E.C
Data Usage
M.O.U
Voice Usage
35
Non Voice Usage
Vas Usage
Non Vas Usage
Incoming Call Usage
Roaming Usage
SMS Usage
On Net Usage
Off Net Usage
Targeted Customers / Circles
Churn Rate
First Calling Date rolling 30 days
In T24 (Tata Teleservices Limited) based on the current market scenario, customers usage
behavior and on the basis of certain KPI‘s the panic model is defined as:
Panic Model Conditions GSM REC (Rolling 30 Days) Definition:
For Voice Products and FCD > 30 Days:
REC PRR for voice products >=10 Rs And
(MOU >= 1 Mints (60 Seconds) i.e. voice or SMS Count >= 5 (i.e. SMS) or Usage in KB >= 50
KB)
For Voice Products and FCD <= 30 Days:
REC PRR for voice products >=10 Rs And
(MOU >= 5 Mints (60 Seconds) i.e. voice or SMS Count >= 5 (i.e. SMS) or Usage in KB >= 50
KB)
For Data Products (CDMA Photon/GSM Dongle):
REC PRR for Data Products >= 10 Rs.
36
Figure 2 Panic Model
Based upon the logic mentioned above the Panic Model or Panic State is made for the month of
April, May, June, July. In this Panic Model/Panic State below is the abbreviation used:
AD = Activity Days
LVC = Low Value Customers
GVC = Mid Value Customers
HVC = High Value Customers
P1 = Panic One
P2 = Panic Two
P3 = Panic Three
While P1 is the least Critical Stage, Whereas P3 is high Critical Stage. These P1, P2 and P3
are the categories where all the targeted customers are segmented according to their usage.
37
Process of Panic Model: Once this model is designed on the basis of Usage done by the
Customers, which have been studied earlier, the Marketing Team seeks for the plans/offers that
can be offered to these customers. From here Product Development Lifecycle comes into the
light.
Product Life Cycle: A Product Life Cycle is a process by which a
new product progresses through a sequence of stages from introduction to growth,
maturity, and decline. This sequence is known as the product life cycle and is associated
with changes in the marketing situation, thus impacting the marketing strategy and the
marketing mix. In T24 a Product Life Cycle is made on the basis of 4 main objectives:
1. For Cost Saving: In this a Product is made with the main objective to save the
cost for a company. For Instance: In T24 once there was an offer that For Rs.199
get 1 GB of 3G and 10% off on shopping more than Rs.2000. But by applying
Cost Saving Product now a customer will get 1 GB of Data Rs.199 and 5% off on
shopping more than Rs.2000. In this case that 5% is a cost saving for the
company.
2. For Retention: In this a product is designed as per the usage of the group of
customers. It is also known as Customized Product. For Instance if in an Open
Market a product is offered as Get Rs85/- talktime on Recharge of Rs100 then for
Retention the same product can be offered as Get Rs100 talktime on every
Recharge of Rs 100 (only for you).
3. For Increasing Revenue: In this Product design the life cycle or validity of the
product is decreased in order to gain incremental Revenue from the Product. For
Instance Get 1 GB of 3G Data for 30 Days in Just Rs.199 but after applying
Increasing Revenue Design the same product will be offered as Get 1 GB of 3G
Data for 28 Days in Just Rs.199.
4. Open Market: This type of product is designed for all the customers.
Stages for Product Life Cycle:
There are certain stages that a Manager in T24 has to undergone in order to launch a product into
Market. As described above out of 4 objectives, for Panic Model a manager has to launch a
product with keeping Retention objective in mind. Following are the steps or stages involved in
Launching of a Product/Life Cycle of a Product.
38
Figure 3 Product Life Cycle in T24
Explanation of Product Life Cycle:
Stage I: Product Concept: This is the First Stage in which a manager comes up an idea about
Concept of a Product. It includes all the process like Benchmarking, ARPU from Product,
feasible studies and cost to company etc.
Stage II: Discussion with Top Management: In this Second Stage a manager present his
Product Concept in front of Top Management (General Manager, Senior Manager in case of
T24). The Manager here justifies his idea and if any improvement makes changes into his idea
and Planning is done for the product, Budget for Development of Product is decided and finally
making a blue print for a product.
Concept Of Product
Discussion with Top
Management
Finance and Other
Departments Approval
Product Configure
Target Customer
Channel of Promotion
Launching of Product
Review of Product
39
Stage III: Finance and Other Department Approvals: Then in this Stage, a manager has to
raise an e-process which is firstly being approved by Top Management then send to Finance
Department where a manager while raising e-process justifies about the Return on Investment
from the product and about how much in terms of Percentage customer will be retained. Then
after Finance approval, this proposal is sent to Legal Department where they do TRAI (Telecom
Regulatory Authority of India) filling.
Stage IV: Product Configuration: After all these approval, the product is configured into
various Departments and Teams like in IT Department, Web Channels, TIPPS, Intelligence
Network, EVD, USSD, RA Assurance Team, IVR etc.
Stage V: Target Customers: This is the Fifth Stage wherein manager identifies the Group of
Customers to whom he has to target for this product which is done with the help of Panic Model.
Stage VI: Channel of Promotion: In this stage, the manager decides the Channel of Promotion
i.e. by which the product will be promoted into market or among the customers. There are
multiple of ways by which promotion can be done like Sending Verbiages, use of Social Media,
T.V advertisement, Digital Advertisement/Marketing, Banners, Posters, Retailers etc. The
Manager uses combination of all the channels as according to the budget as predefined.
Stage VII: Launching of Product: Finally in this stage a product is launched into the market
among the customers with the help of various Campaign Tools like SAS, Cordiant, Netxcell etc.
Stage VIII: Review of Product: After launching of a product, there will be review of Product is
done on timely basis that may be depending upon company to company basis. With the help of
Review it is decided whether the product has incurred the targeted Rate of Return or not and
accordingly action is taken.
Once the Products to be offered are launched for use and with the help of Panic Model to be
designed in SAS the customers will be segmented on the basis of their usage into three main
categories P1, P2, and P3. Most aggressive offering is for P3 Category of Customer, who lies in
most critical stage because P3 stage indicates the customers has high propensity to churn in near
future, while a slightly less aggressive offer is chosen for P2 and so on for P1 because Customers
in these two categories have less propensity to churn.
On these Segmented Customers now the campaign will be made with the help of Campaign Tool
known as SAS. Although there are many different campaign tools but in T24 (Tata Teleservices
Limited) uses SAS for making Campaigns.
40
SAS (Statistical Analysis System) is a software suite developed by SAS Institute for advanced
analytics, multivariate analyses, business intelligence, data management, and predictive
analytics.SAS is a software suite that can mine, alter, manage and retrieve data from a variety of
sources and perform statistical analysis on it. SAS provides a graphical point-and-click user
interface for non-technical users and more advanced options through the SAS programming
language. In order to use Statistical Analysis System, Data should be in an Excel table format or
SAS format.SAS programs have a DATA step, which retrieves and manipulates data, usually
creating a SAS data set, and a PROC step, which analyzes the data.
The SAS software suite has more than 200 components. Some of the SAS components include:
Base SAS – Basic procedures and data management
SAS/STAT – Statistical analysis
SAS/GRAPH – Graphics and presentation
SAS/OR – Operations research
SAS/ETS – Econometrics and Time Series Analysis
SAS/IML – Interactive matrix language
SAS/AF – Applications facility
SAS/QC – Quality control
SAS/INSIGHT – Data mining
SAS/PH – Clinical trial analysis
Enterprise Miner – data mining
Enterprise Guide - GUI based code editor & project manager
SAS EBI - Suite of Business Intelligence Applications
SAS Grid Manager - Manager of SAS grid computing environment
41
Analysis of PANIC MODEL:
After implementation of Panic Model, now here comes the analysis part in which the
performance of panic model is carried out. Interestingly, the review of this model can be done
either once after 7 Days of Implementation or on the multiple of 7 Days depending upon the of
decision of Management. In T24, a review is done on monthly basis. With the help of this model,
the management finds the whether the Panic Model is successful or not and if not then corrective
actions are taken. Below is the review of screenshot of Panic Model for the month of June 2016.
Row Labels Sum of Camp Targets Sum of Delivery Successful Sum of Camp Takers
1-6-16 139542 15753 74
2-6-16 171666 19476 116
3-6-16 170724 18992 104
4-6-16 169689 18511 132
5-6-16 80811 7879 57
6-6-16 163098 17281 101
7-6-16 167214 18440 98
8-6-16 147882 13763 55
9-6-16 179604 13635 62
10-6-16 164946 16308 96
11-6-16 145998 13286 58
12-6-16 154281 8958 50
Figure 4 Report of Panic Model
In the above Report of Panic Model implemented in the Month of June which is generated by
SAS Campaign tool, The Row Labels shows the Date, while Sum of Camp Targets shows the
targeted customers; Sum of Delivery Successful indicates the successful SMS sent to these
targeted customers and the sum of Camp Takers shows the conversion of customers who have
opted for the offers which has been sent to them via text message. These Sum of Camp Takers
are taken into consideration by totaling then at the end of week, Month against total of the sum
of Camp Targets for that week, month then on the basis of which it is estimated how much our
panic model is successful and how much of our customers falls into Churn Stage and then follow
up action is taken for the same by the management.
42
Seeding Model:
A Seeding Model is a form of marketing, designed to target product sampling towards selected
targeted consumers. Seeding is the process of allocating marketing to specific customers, or
groups of customers, in order to stimulate and encourage them to make use of the product and
services. To create loyalty and advocacy towards a brand, seeding trials is used. In a marketing
seeding program, a company offers some sort of promotion (free product, discounts, service
trials, etc.) to a niche group of people with the intention that this would stimulate WOM. Seeding
is a great way for new companies to create a buzz around their products and services, if done
correctly. While not always guaranteed, this type of marketing can be extremely powerful and
useful; to create interest in something before it hits the market. Companies that have used
seeding trials include Procter & Gamble, Microsoft, Hasbro, Google, Unilever, Pepsi, Coke,
Ford, DreamWorks SKG, EMI, Sony and Siemens.
There are two of the main managerial decisions revolving around seeding
Focus on seeding of advertising in a multinational market.
The process of seeding the product itself.
Determining how many and which consumers within a particular network should be seeded to
maximize adoption is a challenging task for the management of the company.
Process of Seeding Model in T24:
With the help of Seeding Model on the basis of usage pattern, in T24 a manager targets those
customers who have not done any usage in terms of Data, SMS or any other packs from a certain
time Period. In order to make them use the service they provide them with free offer benefits.
For Example if customers have not used any Data Pack from a longer time, so in order to retain
him/her towards Data Packs, T24 offers certain amount of free Data usage.
43
Below is process of seeding model implemented in T24 in the month of May.
Figure 5 Database of Non Data Users
Explanation: The above data has been taken as a screenshot from the REC Report that is
generated from IN. As we can see there are certain set of numbers from different Circles of India
who has done usage in terms of SMS and Total MOU but have not used Data Packs in the entire
Month. So here Seeding Model will be implemented as:
These set of customers will firstly put together in one cluster.
Then on that particular cluster, a certain amount of data usage benefit will be fixed for a
certain validity Period.
This Data usage Benefits will be credited to these numbers within 24 Hours and a text
SMS will be sent on these numbers which contain information for the same.
After this, all the activity of data usage will be tracked with the help of IN.
With the help of next REC Report then follow up action is taken.
Hence this is how seeding model is implemented.
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Loyalty Model:
This Model is also known as Value adding Program which includes loyalty schemes in which
customers are rewarded with benefits for their patronage. The more the customer spends the
higher the rewards. The main objective of this loyalty Model is delighting the customer and gives
him an experience of Personal Touch because delighted customers are the ones who will retain with the
company for a longer time period. Firms or organizations should meet or exceed customer expectations
on important attributes such as quality, service, price stability, and style.
In T24 Value derived is done in many ways:
Free Local/STD Minutes
Free Night Packs
Free VAS (Call me tunes, Cricket Alerts, Miss Call Alerts etc)
Freebies in form of T-shirts, Cap, Bag etc.
Free Data Packs or SMS Pack on Birthday, anniversary etc.
Professional Skills Learnt
Analytical Skills.
Digital Marketing Skills (Google Analytical Tools)
Team Coordination
Communication Skills
Advance MS Office
Content Writing Skills
IT Skills
Marketing Skills
Tele Sales Skills
Customer Service Skills
45
Chapter - 5
Recommendations and Conclusion
RESEARCH METHODOLOGY
This Research work was done through telephonic V.O.C.
Market Research
Problem Statement:
Irrespective of Customers being provided with Free Talktime benefits on Shopping at
Future Group outlets we observed usage of customers is too low. Customers are reluctant
towards the use of services.
Explanation: In our analysis in the month of February among T24 Customers in the
Circle of Haryana, Punjab, Uttar Pradesh, Madhya Pradesh and Maharashtra we came to
know that customers are paying money for purchasing the Simcard of T24 along with
FRC‘s of their choices of plans from T24 Sales Executive present at the retail outlets of
Future Group but they are not using the services of T24 irrespective they activate the
number after going through a tele-verification process. This has been a loss for both for
the customers and for the company as well.
For customers: If we talk about customers if they are not using itwe can see the loss for
them in terms of money, which they are paying for purchasing the simcard and also the
benefits that they would be getting from the T24 like Talktime, Data, Sms, Call Rates,
Recharge options at Shopping on retail outlets etc.
For Company: On the other hand if we look from the Company‘s point of view then we
can see that company is investing a lot on the resources like manpower, money, time,
infrastructure etc and if the customers are not using their services than it will be a huge
loss for the company in terms of its revenue, market share, relationship with the
customers, on the goodwill of the company and on the resources on which the company
has invested. Basically if we talk about the loss for a company that will be more in terms
46
of the return on investment that has been expected by the company and moreover on the
brand value of the company.
Solution Improvised: On the basis of the problem mentioned above we came onto
the conclusion that we will capture VOC of the customers who are not using the services
of T24 and did their tele-verification. We have a database of around 136 Customers in 5
Circles (Uttar Pradesh, Maharashtra, Punjab, Bihar, Madhya Pradesh) out of which we
have an alternate number of 60 odd customers which we got through CAF. We prepared a
questionnaire which will be used to gain insights from the customers in order to know
about their point of view regarding why they are not using the services of T24 or what are
the problems they are facing. Initially we made calls to T24 customers who have not
performed their first call. Since their original T24 number cannot be contacted as they
were found to be in switched off mode, so we contacted them on their alternative
numbers and out of that following results has been taken out:
47
Inference: From the above data we can infer that out of 60 Calls made to the
customers around 24% of the customers (i.e. 14) were those who have not attended the
calls, the reasons was either their alternate number was switched off which constitutes to
about 58% (i.e. 8) or either the Mobile Numbers were incorrect or might be Out of
Coverage Area who were 21, 21% respectively.
Not
Attended
Calls=14
Attended Calls = 46
Total Calls
60
Switch
Off = 8
Incorrect
Number
= 3
Out Of
Network
= 3
No
Awareness
= 21
Network Problem =
6
Casual Attitude =
8
Sim Card
Lost = 3
Already Two
Simcards= 7
48
From the Customers who attended the calls which contributes to about 73%
(i.e. 46) the following were the observations
57%22%
21%
Not Attended Calls
Switch Off
Incorrect Number
Out of Coverage Area
47%
15%
13%
18%
7%
Attended Calls
No Awareness
Already Two Simcards
Network Problem
Casual Attitude
Sim Card Lost
49
We got to know that more than 45% (i.e. 21) of the customers are not aware about T24,
the reasons behind this was they were not been provided with full information by the
sales executives of T24, infact they were forced to purchase the connection of T24, most
of the customers were saying that they are not even aware about the plans and benefits
that they would be getting by using T24 and while some customers were complaining that
after they did their tele-verification process they did not received the balance for which
they paid money. An interesting thing that has been observed while having a word with
these customers was that majority of customers were saying that they have not seen any
kind of advertisement of T24 except in Big Bazaar or in any other retail outlets of Future
Group. Infact they were also saying that they have not seen any retail outlet of T24 in and
around their city and the retailers to whom they approach do not keep recharges for T24.
Feedback No.1 Feedback No. 2 Feedback No.3
Solution: To Increase the awareness about T24 in the customers, our team can run
certain advertisement campaigns like Hoardings, Bill Boards, Posters, and Sponsorships in
Social Activities that are prevailing in the city. Also we can advertise T24 on Radio, Television
as well as on Internet through emails, Google ad words etc. Furthermore we need to motivate and
have to provide training to our Sales Executives so that they will provide proper details to each
and every customers regarding T24 and also our team can plan for opening up of new retail
outlets of T24 in cities where T24 is in operations.
No Awareness= 21
No Proper
Information from the
Sales Executive of
T24
No dedicated Outlets
of T24 except in
Future Group Stores
No Advertisement of
T24 in and around the
City
50
Apart from that about 16% (i.e. 7) of the customers were saying that they are already
using two Simcards and they don‘t want to change their old network into the new one just
because of no awareness about the brand T24, furthermore it was observed that these
customers were loyal towards the brand which they are using currently. Even after they
have been provided the details regarding the benefits of using T24 they don‘t want to
switch their number to T24.
Feedback No.1 Feedback No. 2
Solution: For these section of Customers all we can do is sending them text messages and emails
on a regular basis so that they will remember T24 because these are loyal customers and might
be our customers in future.
Whereas 13%(i.e. 6) of the customers were saying, the very reason of not using T24 is
the network problem that they are facing especially in Circle of Uttar Pradesh West
mostly in the remote areas. The customers were complaining that they are not even
getting network of T24 in their own houses. Also, about the connectivity issues they got
to know it from other people as well.
Already Two
Simcards = 7
Don‘t want to switch to
T24 as No Awareness
about T24.
Loyal towards their
current Brands
51
Feedback No.1 Feedback No.2
Solution: For Network issues, since this is a genuine problem and is from our side so we need to
have a word with Network department of Tata DoCoMo on how to improve and strengthen the
network in order to deliver the pioneer services to delight our customers.
While it was observed that about 18%(i.e. 8)of the customers in which the majority was
mainly of the youth, they were having a casual attitude towards T24, either they did not
stated any reason for not using T24 when asked about the reason or it was observed that
they will use T24 in order to empty the talktime balance in near future.An interesting
thing that has been observed in this section of people was they are not having a good
perception about T24 and even they are also not regular customers of Future Group.
Network Problem = 6
No Network
especially in
Uttar Pradesh
West
Heard about Poor
Network from
others as well
52
No
Feedback No.1 Feedba
Solution: Dealing with this type of problem, the best solution would be providing training to
our sales executive to only sell the simcards to those customers who are interested in T24 and not
to every customer in order to fulfill their targets.
Whereas on the other hand about 6% (i.e. 3) of the customers were saying that they lost
their sim card and they are not having enough time to get issue a duplicate one. After
being told about the benefits of using T24 they said that they will buy a duplicate simcard
next time when they will go for shopping in Big Bazaar.
Solution: In order to deal with this problem, we need to guide and aware the customers about
the procedure of getting issues a duplicate simcard and what are the documents they have to
carry for getting a new simcard.
Casual Attitude = 8
No Reason for not
using and does not
have a good perception
about T24
Not Regular
Customer of
Future Group
53
Scope of Improvement:
On the basis of VOC we made, we came to know Possibilities to increase Network usage
can be probed on below points:
Network Penetration
No need
For New
Connection
Casual Attitude
No Awareness
Of Services
Sim Card Lost
Network Problem
Unattractive
Plans
Conclusion: There has been a lot of Problems in our operations that has been observed via
VOC. Our Team has to give a proper attention towards all these problems and have to come up
with the relevant and feasible solutions asap in order to capture a great amount of market share.
In order to deal with all these problems our team need to give a close look on our strengths and
the opportunities and have to make strategies and have to work hard on our weakness and the
possible threats that will be arising in the near future in order to minimize the risk of
uncertainties
54
BIBLIOGRAPHY
http://www.ibef.org/industry/telecommunications.aspx
http://www.tatateleservices.com/t-aboutus-ttsl-organization.aspx
https://en.wikipedia.org/wiki/Tata_Teleservices
https://en.wikipedia.org/wiki/Future_Group
http://t24mobile.com/about.html
https://en.wikipedia.org/wiki/T24_Mobile
http://www.futuregroup.in/about-us/about-group.html
http://www.ngdata.com/what-is-customer-retention/
http://www.impactlearning.com/resources/metrics/customer-retention/
http://www.gainsight.com/your-success/importance-of-customer-retention-strategy/
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