service sector mtnl

7/21/2019 Service Sector Mtnl

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Service Sector:-

Introduction

Services are the activities, benefits or satisfactions which are offered for sale

or are provided in connection with the sale of goods

-According to American Marketing Association

A services is a act or performance offered by one party to another. Although the

process may be tied to a physical product, the performance is essentially intangible

and does not normally result in ownership of any of the factors of production.

Services are economic activities that create value and provide benefits for

customersspecific times and places, as a result of bringing about desired change

inor on behalf ofthe recipient of the service. Services are those separately

identifiable, essentially intangible activities which provide want satisfaction, and

they are not necessarily tied to the sale of a product or another service. To product

a service may or may not require the use of tangible goods. However when such

use is required, there is no transfer of title to these tangible goods.

One of the common method of defining a service is to distinguish between the

core and peripheral elements of that service. The core service offering is the

necessary outputs of an organisational which are intended to provide the tangible

benefits customers are looking for. Peripheral services are those which are either

indispensable for the execution of the core service or available only to improve

the overall quality of the service bundle. Services include all economic activities

whose output is not a physical product or construction, is generally consumed at

the time it is produces, and provides added value in forms that are essentially

intangible concern of the first purchaser.


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Mahanagar Telephone Nigam Limited (MTNL):-

Mahanagar Telephone Nigam Limited (MTNL) is astate

owned telecommunications service provider in the metro citiesofMumbai andNew Delhi inIndia.The company had amonopoly in Mumbai andDelhi until 1992, when the telecom sector was opened to other service providers.

"Transparency makes us different" is the motto of the company. TheGovernmentof India currently holds 56.25% stake in the company. It has a customer base of

5.92 million.Company Profile

MTNL

Parent Company MTNL

Category Mobile service provider

Sector Telecommunication

Tagline/ Slogans Transparency makes us Different

USP SMS rates are reasonable; high speech quality and iscapable of delivering high bandwidth using DSL

technologies

STP

Segment Senior citizens, Conservative audiences

Target Group Middle class from urban areas

Positioning Most reliable and low priced service

SWOT Analysis

Strength 1.High on cash and established infrastructure

2.Enjoys large consumer base in New Delhi, Mumbai3.Being a Govt. company, it enjoys a strong reliability

among users

4.First to introduce 3G services at low prices5.Cheapest tarrif rate; Lowest international calling rates

6.Gets opportunity to be innovative first mover
http://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Government-owned_corporation


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advantage

Weakness 1.Weak marketing as compared to other popular brands

2. Bureaucratic organizational structure

Opportunity 1.Fast expanding cellular market2.Latest and low cost technology

3.Untapped urban market4.Value added services

5.Better connect with customers through ads andservice centres

Threats 1.Competitors low price offering2. Saturation point in Basic telephony service

3.Mobile Number Portability

Competition

Competitors 1.Reliance

2.Idea

3.Vodafone

4.Tata Docomo

5.Aircel

6.MTNL

7.BSNL

8.Uninor

9.Tata Indicom

10.Virgin

BSNL - MTNL Merger Plans:-

On February 23, 2011, The Department of Telecommunications (DoT) wanted torevive a proposal for the merger of state-owned operators BSNL and MTNL. In its

draft plan, the DoT, while showing concern over the deteriorating performance ofBSNL and MTNL, said that BSNL and MTNL should be merged as they have

complimentary operations and can combine their strengths for synergies. Thetelecommunication operators should focus on enterprise business, services to

government and the public sector, value-added services, and technologies like 3G,the department recommends.
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VISION:-

To be one of the preferred "Telecom Technology and Management

Training Centers" in Afro Asian Countries.

MISSION:-To develop leadership competency in the participants through quality

training to face challenges in the field of Telecom Technology &

Management.

To improve accessibility of participants to training of international

repute.

To explore, create and develop knowledge through applied and

concept research in Telecom Technology and Management.

To hold exhibitions/conferences/ international trade show inCommunication and Convergent Technologies to promote the

industry pro-actively.

VALUES:-

Core Values of CETTM-

Customer Oriented Approach

Excellent Programes and Facilities

Total Quality Management

Transparency in Dealings

Mutual Respect and Trust


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CHARACTERISTICS of MTNL:-

1.

Intangibility

The services offered by MTNL are intangible in nature as we cannot touch,

see, smell or taste the communication service provided by them. They offer

facilities like communications.

2.

Perishability

A service once provided is then lost forever ,the satisfaction and the services

were perished as time is the main element of perishability.

3.

Inseparability

Services are generally created and supplied simultaneously. The service isprovided & customer takes the benefits at the same time.

4. Ownership

The ownership lies with the MTNL only, but the customers can only use the

service. The can take advantage from the service and be satisfied.

5.

Heterogeneity

The skills of any officer that provides service is different from others, thereis no similarity possible in case of providing services and it always differs.

Hence , it makes difficult to set a standard for any service as services

rendered are heterogeneous in nature.

6.

Quality Measurement

The quality provided by MTNL cannot be measured easily unlike any

product.


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Service Marketing Mix (7 Ps of MTNL):-

The marketing mix consists of 4Ps- Product, Price, Promotion and Place.

Recently, 3Ps are added-People, Process and Physical Evidence (Augmented

Marketing Mix). These are the 7Ps of service marketing also known as Elements

of service marketing mix. These elements are applied by MTNL.


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1.

Product:-

Telephone service via wires and cables that connect customers premises to

central offices maintained by telecommunications companies. Transmission of

all types of graphic, video, and electronic data mainly over the Internet.

Fixed line, mobile telephony, wired & wireless broadband, fiber to the

home, dial up internet, digital television.

Telephone and Mobile-MTNL providesfixed line

telephones andWLL services. It also provides mobile services

onGSM andCDMAplatforms. MTNL various service brands are:

Dolphin - a postpaid GSM service which also provides value added services

such as3G,

Trump - a prepaid GSM service, similar to Dolphin,

Garuda - a WLL service which provides an FW tariff, and a Mobile tariff

3G Mobile Service-MTNL started3G services inIndia under the name of

"MTNL 3G Jadoo." Services offered includevideo calling,mobile

TV andmobile broadband with high speed data connectivity up to 3.6 Mbit/s

from 11 December 2008. MTNL plans to offer 3G services across India by

mid-2009. MTNL also provides 3G data cards for usage in devices other

than mobile phones.

2.

Price:-The pricing strategy adopted by the telecommunication industry is based on

what kind of services they are providing to their customers. They chargingprices for each and every value added services availed by the customers. Pricing

strategy is based on 3 components--Cost based

-Competition based

-Value based

3.

Place:-

Channelizing is through different outlets, franchises makes the services

available at customer convenience place. Rural market is targeted by distributing

certain scheme to senior person of the village in order to create

awareness among the people of the village.
http://en.wikipedia.org/wiki/Landlinehttp://en.wikipedia.org/wiki/Landlinehttp://en.wikipedia.org/wiki/WLLhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/CDMAhttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Video_callhttp://en.wikipedia.org/wiki/Mobile_TVhttp://en.wikipedia.org/wiki/Mobile_TVhttp://en.wikipedia.org/wiki/Mobile_broadbandhttp://en.wikipedia.org/wiki/Mobile_broadbandhttp://en.wikipedia.org/wiki/Mobile_TVhttp://en.wikipedia.org/wiki/Mobile_TVhttp://en.wikipedia.org/wiki/Video_callhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/CDMAhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/WLLhttp://en.wikipedia.org/wiki/Landlinehttp://en.wikipedia.org/wiki/Landline


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4.

Promotion:-

Advertising and promotion are undertaken through cooperation between the

service providers and mobile phone manufacturers.

The consumers relate information about the service provider with a

combination of brand concept and unit usage flexibility.The relationship of variable to choice is significant with only price upward

difference with current model showing an inverse relationship and the brandconcept commanding the highest positive contribution.

5. People:-

As the demand internet increases telecommunications companies have been

expanding and upgrading their networks. Customer service representatives work in

call centres where they answer customer service calls. Manpower is required in

those areas where industry is set up for the first time as well as expanding their

network in rural areas.

6.

Process:-

This sector provide telephone service through wires and cables that connect

customerspremises to central offices maintained by telecommunications

companies. The central offices contain switching equipment that routes content

to its final destination that determines the most efficient route for the content to

take. While voice used to be the main type of data transmitted over the wires,wired telecommunications service now includes the transmission of all types of

graphic, video, and electronic data mainly over the Internet.

7. Physical Evidence:-

Communication equipments such as telephone operators, work at video display

terminals in pleasant, well-lighted, air-conditioned surroundings, these all are well

maintained in order to avoid customers discomfort. The rapid pace of the job and close

supervision may cause stress. Some workplaces have introduced innovative

practices among their operators to reduce job-related stress. so in this way the

industry maintains physical evidence and satisfaction .


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Reasons for growth of MTNL :-

Information Technology

Now a days due to increase in technology MTNL is providing services to itscustomers conveniently. Due to new innovations it is easy to pay bills just

by sitting at home.

IT support is essential to implement effective business strategies. A business

has to coordinate on entire supply - chain process and correspondinginformation flow.

MTNL being a service organization is reaching out to its customers with a

customer focused strategy to better information about customer profiles.

Services like call centres, internet, e-commerce, intelligent network,

personalised services, network management etc. are required as single

window solution. MTNL has recognized that IT is the key to future business success. IT is

being implemented as the backbone for running customer friendly services.

Customer Care

MTNL has synergised all its energies to total customer satisfaction bymodernising the services to international level and incorporating in its

network.

Cellular Mobile Services

MTNL, with world- class vision, has ordered GMS equipment worth100,000 subscribers, to enter into GSM technology to attain global

excellence & leadership in business.

The network envisaged will support applications like - Intelligent Network,

Gateways, Landline Networks.

Value Added Services

a) Voice Mail Service:

The receipt of a voice mail message results in the generation of a message

waiting indicator on the customer's mobile phone.b) Short Message Service :

GSM network provides the capability to send & receive short text messagesto & from mobile handsets.


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c) Cell Broadcast Service :

Cell Broadcast Short Messages are addressed to a radio cell & are destinedto be received by all subscribers within a radio cell or range of radio cells.

d) Intelligent Network Services:

(i) International Roaming support(ii) Advanced Roaming Services (ARS)

- Freephone - Split charging e.g. local tariff anywhere within country- Premium rate e.g. information lines & entertainment

- Universal Access Number(iii) Prepaid

(iv) Virtual Private Network (VPN)

Complaints Handling

Complaint on vigilance matters related to officials of MTNL can be made byanybody as this forms the main source of information related to corruption.

However, complaints regarding defective services not involving any vigilanceangle and intentions need to be reported to the respective area officials posted for

operation/maintenance of services. The complainant should also note thefollowing:

Quick response to all complaints.

Anonymous complaints are not entertained. The complainant must

mention his complete address, telephone/mobile No. etc. and sign the

same. Only those complaints which are against officials and organizations

within the jurisdiction of the Commission and have allegations of

corruption will be got investigated.

Complaints must be brief and contain factual details, verifiable facts and

related matters. They should not be vague or contain sweeping generalallegations.

No further correspondence in the matter will be entertained, but it shallbe ensured that the complaints are investigated and action taken to its

logical conclusion.


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Various methods adopted by MTNL to Improve

Performance:-

Faced with heavy financial losses and stiff competition from private players,

Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone NigamLimited (MTNL) are taking rapid steps to improve their standing.

Both companies are focused on monitoring the revenues obtained from the

countrys top 100 cities and are focusing on customer care, service delivery,service assurance, revenue management and asset management.

Aggressively promoting data usage and value added services is also on the

agenda, as is segregating commercial and social activities, migrating thecurrent network to a next generation one and consolidating and deliveringvarious services to end customers across different technologies.


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Classification of MTNL:-

1)

End UserThe consumers that use the service of MTNL are the end users of the

company. Consumers are the individual who consume the final benefits

provided by the company.

2) Degree of Intangibility

Telecommunication is highly intangible in nature. The services offered by

Mahanagar Telephone Nigam Limited is intangible in nature as we

cannot touch, see, smell or taste the service provided by them. They offer

facilities like communications through landlines, GSM, CDMA, internet

connections etc. and its customers can derive satisfaction through service

provided by them.

3)

High Contact

Telecommunication is a kind of service that is not very much people based.

Without the contact or meeting of the provider, factor of production and the

end consumer, the production can take place. There is no need of frequent

meetings between providers & end customers.

4)

Geographical Limitations

For the purpose of recharge or payment of bill customers have to visit to

galleries. For this reason MTNL have started internet recharge & internet

bill payment for convenience of customers. But this is not possible for

everyone due to several factors.


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Marketing Challenges and Its Outcomes:-

1)

Customers cant see or touch service before the purchase them:

Customers cannot touch or see the services provided by MTNL. To

overcome this problem, MTNL sell its sim cards at reasonable prices and

with many services like low call rates, low message rates etc.

2)

Trust:

Customers should have trust on services being provided. If customers do not

have trust, MTNL will go into losses as people will not opt for this service.

3)

Competition:

MTNL faces competition from many services .

4)

Passion is necessary, yet exclusive:

The service provider must be passionate about their services , this only

brings efficiency and profitability in the firm. This is one of the main

problem , so the firm need to pay the staff effectively, give proper holidays,

many facilities as they spend lot of time in the office.

5)

MTNL often do the selling:-MTNL split their marketing, sales, HR, and all the functions. It makes easy

for them to manage the business properly and efficiently.


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Factors Affecting the transformation of service marketing

environment:-

1)

Government Policies:-

Changes in regulations, Privatisation and economic liberalization, new rules

to protect customers, employees and the environment, are some of the

factors that affect the service marketing environment of MTNL.

2)

Social Changes:-

Rising customers expectations in shot of time, more affluence, rising

ownership of computers and mobile phones, etc are some of the factors of

social changes.

3)

Information Technology:-

Convergence of computers and telecommunications, digitization of text,

graphics, audio and video, powerful software, wireless networking, growth

of internets are some of the factors that the service marketing environment

of MTNL.


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MTNLs Marketing Environment:-

Internal Environment-

1) Internal Customers :

The internal customers consist of the, administration staff, marketing staff

and all other departmental staff. Company can control them as they are

controllable. They affect the reputation of the firm directly. They can

become opportunity as well as threat for the firm.

2) External Customers :

External customers of are the consumers, competitors, suppliers and

regulators. The consumers are the people using these services. They are not

controllable. MTNL develop loyal customer base by understanding their

needs and wants. They try their best to keep the customers happy and

satisfied. They try to gain a competitive advantage.

External Environment-

1)

Economic Environment :

Economic environment are the outcome of the economic policies. Due to

political instability in India, economic policies also changes and because

of it, MTNL have to study economic environment and adjust their

policies.

2)

Political Environment :

Political environment refers to the influence that is exerted by the

political institution, viz. legislature, executive, and judiciary, in shaping,

directing, developing and controlling the business activities. Politicalenvironment in any country at any given period of time is the result of

political system. MTNL have to study political environment.


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3) Legal/Regulatory Environment :

In every country, government regulates the business activities and the

government rules and regulations create regulatory environment. In India,

various laws are made for effective regulations of business activities.

MTNL have to follow the rules and regulations stated by the government.

4)

Technological Environment :

Technological environment relates to the technology used in the

production and other business activities. MTNL use technology for

growth of the firm and it has contributed to its greatest extent. It helps for

the effective management of the firm.

5)

Socio-Cultural Environment :Socio-cultural environment is the result of social forces. Society consist

of different social groups and expectations from these groups creates

cultural environment for business. The people have many expectations

from MTNL like best schemes, best network , friendly relation with

customer care executives less call rates, easy payment techniques, etc.

6)

Demographic Environment :

Demography is the study of population in relation to sex ratio, literacy

rate, standard of living, rural urban division, size of the family and so on.

The market demand, requirement of the customers, etc are based on

demographic environment. The customers taste have changed now a day

due to high literacy rate.

7)

Physical Environment :

Physical factors create a special environment for the business units.

Physical factors are uncontrollable and they include geographical factors

like weather, and climatic conditions. In addition, factors like rainfall,

landforms, etc create natural environment which has considerable

influence on the functioning of the business enterprise. MTNL networks

are also affected from natural environment.


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Current status of MTNL:-

MTNL , a public sector company, is a franchise of the Department of Telecom.

Telecom Minister Kapil Sibal stated that the two companies are under extreme

financial stress.

MTNL has been literally run into the ground with its salary bill exceeding revenue.

state-run MTNL suffered losses to the tune of Rs. 12,960 crore in 2011-12 as a

result of stiff competition in mobile sector and high staff cost.

Improvement measures for future prospects of MTNL:-

Telecom Minister Kapil Sibal Sibal is desperately seeking a bailout package for

loss-making Bharat Sanchar Nigam Ltd (BSNL ) and Mahanagar Telephone

Nigam Ltd (MTNL) even as the government has set up a Group Of Ministers

(GoM) to look into the funding of the two public sector companies.

MTNL is utilising its assets, building capacity in network for handling a large

subscriber base and exploring new sources of income, which will help the

company to reduce losses.

Both BSNL and MTNL are also looking at reducing their workforce by 1.21 lakh

by offering a voluntary retirement scheme to staff, which will cost them a

whopping Rs.17,445 crore.

The two loss-making public sector telecom companies need fresh funds and

strategies to survive in the Indian telecom market and compete with mobile

operators such as Bharti MTNL, Vodafone, Idea Cellular, Tata Teleservices,

Reliance Communications, etc.
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Conclusion:-

MTNL was set up on 1st April, 1986 by the Government of India to upgrade the

quality of telecom services, expand the telecom network, and introduce newservices and to raise revenue for telecom development needs of Indias key metrosDelhi,the political capital and Mumbai, the financial capital of India.

In Mumbai, MTNL started journey in 1882, in pre-independence era, as BombayTelephone.The company have come a long way since then.

MTNL takes all the efforts to satisfy customers. It works taking in to account allthe factors. If it does not work according to environment it will not gain success. It

has been very successful in providing quality telecom services. It also faced manychallenges but survived through them.

Now though the company is facing losses due to stiff competition by the private

players in telecom sector but soon will cover those and stand again as a successfulcompany.

Bibliography:-

mtnlmumbai.in

http://mtnlmumbai.in/index.php/about-us

http://indiatoday.intoday.in/story/kapil-sibal-seeks-bailout-package-for-bsnl-

mtnl-writes-to-prime-minister/1/267703.html

http://www.telecomlead.com/telecom-services/bsnl-and-mtnl-revival-

strategy-meet-on-may-10-96371/#sthash.mMBRcQ6s.dpuf
http://mtnlmumbai.in/index.php/about-ushttp://indiatoday.intoday.in/story/kapil-sibal-seeks-bailout-package-for-bsnl-mtnl-writes-to-prime-minister/1/267703.htmlhttp://indiatoday.intoday.in/story/kapil-sibal-seeks-bailout-package-for-bsnl-mtnl-writes-to-prime-minister/1/267703.htmlhttp://indiatoday.intoday.in/story/kapil-sibal-seeks-bailout-package-for-bsnl-mtnl-writes-to-prime-minister/1/267703.htmlhttp://indiatoday.intoday.in/story/kapil-sibal-seeks-bailout-package-for-bsnl-mtnl-writes-to-prime-minister/1/267703.htmlhttp://www.telecomlead.com/telecom-services/bsnl-and-mtnl-revival-strategy-meet-on-may-10-96371/#sthash.mMBRcQ6s.dpufhttp://www.telecomlead.com/telecom-services/bsnl-and-mtnl-revival-strategy-meet-on-may-10-96371/#sthash.mMBRcQ6s.dpufhttp://www.telecomlead.com/telecom-services/bsnl-and-mtnl-revival-strategy-meet-on-may-10-96371/#sthash.mMBRcQ6s.dpufhttp://www.telecomlead.com/telecom-services/bsnl-and-mtnl-revival-strategy-meet-on-may-10-96371/#sthash.mMBRcQ6s.dpufhttp://www.telecomlead.com/telecom-services/bsnl-and-mtnl-revival-strategy-meet-on-may-10-96371/#sthash.mMBRcQ6s.dpufhttp://www.telecomlead.com/telecom-services/bsnl-and-mtnl-revival-strategy-meet-on-may-10-96371/#sthash.mMBRcQ6s.dpufhttp://indiatoday.intoday.in/story/kapil-sibal-seeks-bailout-package-for-bsnl-mtnl-writes-to-prime-minister/1/267703.htmlhttp://indiatoday.intoday.in/story/kapil-sibal-seeks-bailout-package-for-bsnl-mtnl-writes-to-prime-minister/1/267703.htmlhttp://mtnlmumbai.in/index.php/about-us

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