strategies related to cellular services and consumer behavior

8/8/2019 Strategies Related to Cellular Services and Consumer Behavior

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Strategies Related To CellularStrategies Related To CellularServices And ConsumerServices And Consumer

BehaviorBehaviorIn India

Presented by:Kamal Sharma

(2009MB26)Puneet Jain

(2009MB57)


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AgendaAgenda

IntroductionIntroductionTelephone statisticsTelephone statisticsOverview of Cellular Services in IndiaOverview of Cellular Services in IndiaScope of telecom industryScope of telecom industry

Market structureMarket structureGSM VS CDMAGSM VS CDMAPlayers of telecom industryPlayers of telecom industryConsumer Buying Decision ProcessConsumer Buying Decision ProcessChanging Face of Indian Mobile ConsumerChanging Face of Indian Mobile ConsumerMajor market trendsMajor market trends

Future trends in telecom industryFuture trends in telecom industryDevelopments in telecom industryDevelopments in telecom industryConclusionConclusion


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IntroductionIntroduction

India has the fastest growing telecom network in the world with itshigh population and development potential. Airtel , Idea, Reliance,BSNL, Aircel, Tata Indicom, Vodafone, MTNL, and Loop Mobile areother major operators in India. However, rural India still lacks strong

infrastructure. India's public sector telecom company BSNL is the7th largest telecom company in world.

Telephony introduced in India in 1882. Today the total number ofTelephony introduced in India in 1882. Today the total number oftelephone subscribers in the country crossed the 600 million mark intelephone subscribers in the country crossed the 600 million mark inJuly 2010 and the total numbers of telephone subscribers haveJuly 2010 and the total numbers of telephone subscribers havereached 688.38 million at the end of July 2010 .The overall telereached 688.38 million at the end of July 2010 .The overall tele--density has increased to 58.17%% in July 2010density has increased to 58.17%% in July 2010


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Introduction contd..Introduction contd..

In the wireless segment, 16.92 million subscribers have been addedIn the wireless segment, 16.92 million subscribers have been addedin July 2010.The total wireless (GSM, CDMA & WLL (F))in July 2010.The total wireless (GSM, CDMA & WLL (F))subscribers base is 652.42 million as of July 2010 .The wire linesubscribers base is 652.42 million as of July 2010 .The wire line

segment subscriber base stood at 35.96 millionsegment subscriber base stood at 35.96 million


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Telephone statisticsTelephone statistics

Telephony Subscribers (Wireless and Landline):Telephony Subscribers (Wireless and Landline):688.38 million688.38 million(July 2010(July 2010

Land Lines:Land Lines: 35.96 million (July 2010)35.96 million (July 2010)

Cell phones:Cell phones: 652.42 million (July 2010)652.42 million (July 2010)

Yearly Cell phone Addition:Yearly Cell phone Addition: 178.25 million (Jan178.25 million (Jan--Dec 2009)Dec 2009)

Monthly Cell phone Addition:Monthly Cell phone Addition: 16.92 million (July 2010)16.92 million (July 2010)

Teledensity :Teledensity : 58.1758.17 %% (July 2010)%% (July 2010)

Projected Teledensity:Projected Teledensity: 1.159 billion, 75% of population by 2013.1.159 billion, 75% of population by 2013.


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Mobile Cellular:Mobile Cellular: The mobile service has start growth since 2000.The mobile service has start growth since 2000.The number of mobile phone connections has crossed fixedThe number of mobile phone connections has crossed fixed--lineline

connections in Sept 2004. Currently there are an estimated 652.42connections in Sept 2004. Currently there are an estimated 652.42million mobile phone users in India compared to 35.96 million fixedmillion mobile phone users in India compared to 35.96 million fixedline subscribers .India primarily follows the GSM mobile system, inline subscribers .India primarily follows the GSM mobile system, inthe 900 MHz band. Recent operators also operate in the 1800 MHzthe 900 MHz band. Recent operators also operate in the 1800 MHzband. The dominant players are Aircel, Vodafone, Airtel, Tataband. The dominant players are Aircel, Vodafone, Airtel, TataIndicom, Tata Teleservices , MTS, Uninor, Reliance Infocomm, IdeaIndicom, Tata Teleservices , MTS, Uninor, Reliance Infocomm, IdeaCellular and BSNL/MTNL. There are many smaller players, withCellular and BSNL/MTNL. There are many smaller players, with

operations in only a few states. International roaming agreementsoperations in only a few states. International roaming agreementsexist between most operators and many foreign carriers.exist between most operators and many foreign carriers.

Landlines:Landlines: In India landline service is firstly run by BSNL/MTNL andIn India landline service is firstly run by BSNL/MTNL andafter there are several other private players too, such as Airtel,after there are several other private players too, such as Airtel,Reliance Infocomm, Tata Teleservices and Touchtel. Landlines areReliance Infocomm, Tata Teleservices and Touchtel. Landlines are

facing stiff competition from mobile telephones. The competition hasfacing stiff competition from mobile telephones. The competition hasforced the landline services to become more efficient. The landlineforced the landline services to become more efficient. The landlinenetwork quality has improved and landline connections are nownetwork quality has improved and landline connections are nowusually available on demand, even in high density urban areas.usually available on demand, even in high density urban areas.


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The Indian telecom sector can be broadly classified into Fixed LineThe Indian telecom sector can be broadly classified into Fixed Line

Telephony and mobile telephony. The major players of the telecom sectorTelephony and mobile telephony. The major players of the telecom sector

are experiencing a fierce competition in both the segments. The majorare experiencing a fierce competition in both the segments. The major

players like BSNL, MTNL, VSNL in the fixed line and Airtel, Hutch, Idea,players like BSNL, MTNL, VSNL in the fixed line and Airtel, Hutch, Idea,

Tata, Reliance in the mobile segment are coming up with new tariffs andTata, Reliance in the mobile segment are coming up with new tariffs and

discount schemes to gain the competitive advantage. The Public Playersdiscount schemes to gain the competitive advantage. The Public Players

and the Private Players share the fixed line and the mobile segments.and the Private Players share the fixed line and the mobile segments.

Currently the Public Players have more than 70% of the market share.Currently the Public Players have more than 70% of the market share.

Source:- www.sneachq.net


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FixedFixed--line Telephonyline Telephony

Public PlayersPublic Players

SubscribersSubscribers

Private PlayersPrivate Players

SubsSubscriberscribers

Mobile TelephonyMobile Telephony

Public PlayersPublic Players


Private PlayersPrivate Players




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IndiaIndiaIndia has a 700 million people living in 638,000 villagesIndia has a 700 million people living in 638,000 villages

And perAnd per--capita income of $ 0.40 per day)capita income of $ 0.40 per day)

As per DoT statistics 600,000 villages have telephone access.As per DoT statistics 600,000 villages have telephone access.



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Scope of Telecom IndustriesScope of Telecom Industries

Public & private playerPublic & private player

18%

20%

21%

Source:- www.telecomsitesource.com


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Market structureMarket structure

Divided into 22Divided into 22circlescircles 6 metros6 metros 21 circles21 circles

Further divided into A,Further divided into A,B and C categoryB and C categorybased on economicbased on economicparameters andparameters andrevenue potentialrevenue potential

Each circle has aEach circle has a

licenseslicenses Four operators perFour operators per

circle are allowedcircle are allowed Licenses are saleableLicenses are saleable

METRO Circles

Gujarat

Rajasthan

MaharashtraOrissa

Andhra Pradesh

Karnataka

a il adu

Kerala

Madhya Pradesh

Uttar Pradesh E

Bihar

West Bengal

Punjab

Hi achal Pradesh

Haryana

Ja u & Kash ir

UttarPradesh

W

CHE

AI

MUMBAI

DELHI

KOLKA

A

C Circles

B Circles

A Circles

Source:- www.telecomsitesource.com


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GSM vs. CDMAGSM vs. CDMA

Number of different channels allotted to aNumber of different channels allotted to agiven bandwidth.given bandwidth.

CostsCosts

Degree of harm and interferenceDegree of harm and interference

Greater privacyGreater privacy


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Players of Telecom IndustriesPlayers of Telecom Industries

AirtelAirtel

BSNLBSNL

VodafoneVodafoneRelianceReliance

IdeaIdea


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AIRTELAIRTEL

EstablishedEstablished inin 19951995 byby SunilSunil MittalMittal asas aa PublicPublic LimitedLimitedCompany,Company, AirtelAirtel isis thethe largestlargest telecomtelecom serviceservice providerprovider ininIndianIndian telecomtelecom sectorsector.. WithWith marketmarket capitalizationcapitalization ofof overoverRsRs.. 11,,360360 billion,billion, AirtelAirtel hashas 3131%% ofof totaltotal marketmarket shareshare ofof

GSMGSM serviceservice providersproviders.. ProvidingProviding GSMGSM servicesservices inin allallthethe 2323 circles,circles, AirtelAirtel waswas thethe firstfirst privateprivate playerplayer inintelecomtelecom sectorsector toto connectconnect allall statesstates ofof IndiaIndia.. Also,Also, AirtelAirtelisis thethe firstfirst mobilemobile serviceservice providerprovider toto introduceintroduce thethelifetimelifetime prepaidprepaid servicesservices andand electronicelectronic rechargerecharge

systemssystems..


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BSNLBSNL (Bharat Sanchar Nigam Ltd.)(Bharat Sanchar Nigam Ltd.)

Founded in 2000, Bharat Sanchar Nigam Ltd. In 2005Founded in 2000, Bharat Sanchar Nigam Ltd. In 2005--06, the BSNL earned revenues of Rs. 40,177 crore, & In06, the BSNL earned revenues of Rs. 40,177 crore, & In

20072007--08, the BSNL earned revenues of Rs.38,05308, the BSNL earned revenues of Rs.38,053crores. India's largest public sector Telecommunicationscrores. India's largest public sector TelecommunicationsCompany providing a wide variety of telecom services.Company providing a wide variety of telecom services.Its service range covers Wireline, CDMA mobile, GSMIts service range covers Wireline, CDMA mobile, GSMMobile, Internet, Broadband, Carrier service, MPLSMobile, Internet, Broadband, Carrier service, MPLS--VPN, VSAT, VoIP services, IN Services, etc.VPN, VSAT, VoIP services, IN Services, etc.


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VODAFONEVODAFONE

VodafoneVodafone EssarEssar inin IndiaIndia isis aa subsidiarysubsidiary ofof VodafoneVodafoneGroupGroup PlcPlc andand commencedcommenced operationsoperations inin 19941994 whenwhen itsitspredecessorpredecessor HutchisonHutchison TelecomTelecom acquiredacquired thethe cellularcellularlicencelicence forfor MumbaiMumbai.. VodafoneVodafone EssarEssar nownow hashas operationsoperations

inin 2020 circlescircles withwith overover 5454..6363 millionmillion customerscustomers.. VodafoneVodafoneisis thethe worldsworlds leadingleading internationalinternational mobilemobilecommunicationscommunications companycompany.. ItIt nownow hashas operationsoperations inin 2525countriescountries acrossacross 55 continentscontinents andand 4040 partnerpartner networksnetworkswithwith overover 269269 millionmillion customerscustomers worldwideworldwide.. VodafoneVodafonehashas partneredpartnered withwith thethe EssarEssar GroupGroup asas itsits principalprincipal jointjointventureventure partnerpartner forfor thethe IndianIndian marketmarket..


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RELIANCERELIANCE

EstablishedEstablished inin 20022002,, RelianceReliance communicationcommunication isis thethewhollywholly ownedowned subsidiarysubsidiary ofof AnilAnil DhirubhaiDhirubhai AmbaniAmbani GroupGroupofof CompaniesCompanies providingproviding thethe telecommunicationtelecommunication servicesservices..

RelianceReliance offersoffers prepaidprepaid andand postpaidpostpaid mobilemobile servicesserviceswithwith RR--worldworld andand fixedfixed lineline servicesservices withwith broadbandbroadbandservicesservices.. InIn 673673 cities,cities, RelianceReliance CommunicationsCommunications offersoffersaa widewide rangerange ofof telephonytelephony servicesservices.. WithWith anan opticaloptical fiberfibernetworknetwork ofof 8080,,000000 kms,kms, thethe companycompany aimsaims atat providingproviding

bestbest servicesservices toto itsits customerscustomers..


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IDEAIDEA

EstablishedEstablished byby AT&T,AT&T, AdityaAditya BirlaBirla GroupGroup andand TataTataGroupGroup asas jointjoint venture,venture, IdeaIdea Cellular,Cellular, isis aa partpart ofof AdityaAdityaBirlaBirla Nuvo,Nuvo, aa flagshipflagship companycompany ofof thethe AdityaAditya BirlaBirla Group,Group,IdeaIdea isis growinggrowing itsits networknetwork inin 1111 circlescircles.. IdeaIdea offersoffers bothboth

prepaidprepaid andand postpost paidpaid servicesservices inin thethe GSMGSM networknetwork..HavingHaving 1313%% marketmarket share,share, IdeaIdea hashas aa basebase ofof 22..33 crorescroressubscriberssubscribers allall overover thethe countrycountry.. AA threethree--yearyear contractcontractwaswas signedsigned betweenbetween IdeaIdea cellularcellular andand EricssonEricsson forfor GSMGSMexpansionexpansion.. TheThe networknetwork willwill nownow covercover Maharashtra,Maharashtra,

Gujarat,Gujarat, Rajasthan,Rajasthan, MadhyaMadhya PradeshPradesh andand HimachalHimachalPradeshPradesh telecomtelecom circlescircles (operator(operator--licensedlicensed areas)areas)..


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Market Strategy of AirtelMarket Strategy of Airtel

We positioned Airtel as an inspirational and lifestyleWe positioned Airtel as an inspirational and lifestylebrand, in a way that trivialized the price in the mind of thebrand, in a way that trivialized the price in the mind of theconsumer. It was pitched not merely as a mobile service,consumer. It was pitched not merely as a mobile service,but as something that gave him a badge value.but as something that gave him a badge value.

Airtel strategy us to be a leader inAirtel strategy us to be a leader in

--InnovationsInnovations

--networknetwork

--offers and servicesoffers and services


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Market Strategy ofMarket Strategy of BSNLBSNL

We often talk of marketing & Sales and often use it interchangeablyWe often talk of marketing & Sales and often use it interchangeablywithout understanding the difference in it. Marketing is everything wewithout understanding the difference in it. Marketing is everything wedo to get and leverage a client relationship.do to get and leverage a client relationship. Marketing process isMarketing process isbroad and includes all of the following:broad and includes all of the following: --

Discovering what product, service or idea customers want.Discovering what product, service or idea customers want.

Producing a product with the appropriate features and quality.Producing a product with the appropriate features and quality.

Pricing the product correctly.Pricing the product correctly.

Promoting the product; spreading the word about whyPromoting the product; spreading the word about whycustomers should buy it.customers should buy it.

Selling and delivering the product into the hands of theSelling and delivering the product into the hands of thecustomer.customer.


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Competitive Analysis (PositioningCompetitive Analysis (Positioning

Strategy)Strategy)

Vodafone has veeredVodafone has veered

towards warmth andtowards warmth andemotions.emotions.Vodafone used theVodafone used thepowerful visualpowerful visualimagery of a dog.imagery of a dog.

Airtel is focused onAirtel is focused on

functionally andfunctionally andefficiency.efficiency.

Airtel choose to useAirtel choose to usemusic, which is not nearlymusic, which is not nearly

as effective.as effective.


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Competitive Analysis (Target Audience)Competitive Analysis (Target Audience)

They are targetingThey are targeting

middle class person asmiddle class person as

their target audience.their target audience.

It can be justified byIt can be justified by

their product liketheir product likechota recharge.chota recharge.

A group or class ofA group or class ofpersons enjoying superipersons enjoying superiintellectual or social orintellectual or social oreconomic statuseconomic status

Up marketUp market

professionalsprofessionals


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AdAd--Campaign by AIRTELCampaign by AIRTEL


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AdAd--Campaign by VODAFONECampaign by VODAFONE


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Consumer BehaviourConsumer Behaviour

Mental and emotional process during selecting,Mental and emotional process during selecting,purchasing and post consumption of services.purchasing and post consumption of services.

Factors Affecting Consumer Buying Behaviour:Factors Affecting Consumer Buying Behaviour:

Social FactorsSocial Factors Psychological FactorsPsychological Factors

Personal FactorsPersonal Factors


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Consumer BuyingConsumer Buying

Decision ProcessDecision Process

Information

Search

Post Purchase

Action

Problem

Recognition

Alternative

Evaluation

Purchase

Action


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Future TrendsFuture Trends

Convergence of technologies & the ability of privateConvergence of technologies & the ability of privateplayers to offer it to the market faster than the incumbentplayers to offer it to the market faster than the incumbentoperator.operator.

The telecom industry in 2012 will be very different fromThe telecom industry in 2012 will be very different fromthe one we know today. Developing strong partnershipthe one we know today. Developing strong partnershipskills, focusing on customer user groups, embracingskills, focusing on customer user groups, embracingInternet services and starting to talk the language ofInternet services and starting to talk the language ofWeb 2.0 will enable the carriers to thrive well into theWeb 2.0 will enable the carriers to thrive well into the

future,"future,"


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Developments inDevelopments in Cellular Services inCellular Services inIndiaIndia

3G Technology In India3G Technology In India

3G or Third Generation technology is a convergence3G or Third Generation technology is a convergenceof various Second Generation telecommunicationof various Second Generation telecommunicationsystems. The technology is intended forsystems. The technology is intended for

SMARTPHONESSMARTPHONES -- multimedia cell phones. Videomultimedia cell phones. Videobroadcasting and other ebroadcasting and other e--commerce services suchcommerce services suchas, stock transactions and eas, stock transactions and e--learning will now belearning will now bemade possible much faster. It offers 3 Mbps speedmade possible much faster. It offers 3 Mbps speedfor downloading, which is very high as compared tofor downloading, which is very high as compared tothat of the 2G technology. The 3G technologythat of the 2G technology. The 3G technology

provides for internet surfing, downloading, eprovides for internet surfing, downloading, e--mailmailattachment downloading, audioattachment downloading, audio--video conferencing,video conferencing,fax services and many other broadband applications.fax services and many other broadband applications.


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All players are going to launch netAll players are going to launch netusage by USB (plug & surf fromusage by USB (plug & surf from

anywhere)anywhere)


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ConclusionConclusion

In this changing landscape, the winners will be those companiesIn this changing landscape, the winners will be those companiesthat understand consumers' needs, focusing on usability andthat understand consumers' needs, focusing on usability andactually giving control back to the users. The losers will be the onesactually giving control back to the users. The losers will be the onesthat focus on overly technical product differentiation that the majoritythat focus on overly technical product differentiation that the majorityof consumers will not understand and therefore not use.of consumers will not understand and therefore not use.

Inevitably, the global telecom majors are taking notice and Nokia,Inevitably, the global telecom majors are taking notice and Nokia,LG and Motorola have put up factories to manufacture mobileLG and Motorola have put up factories to manufacture mobilephones after years of saying that the Indian market was betterphones after years of saying that the Indian market was bettersupplied from abroad. Nokias former chairman Jorma Ollila wassupplied from abroad. Nokias former chairman Jorma Ollila wasquite clear why the company was finally moving to India. Wequite clear why the company was finally moving to India. Weestimate that India will become the worlds second biggest mobileestimate that India will become the worlds second biggest mobiledevice market when measured by volumes in the year 2011. Otherdevice market when measured by volumes in the year 2011. Othermarket research companies have estimated that India will, in fact,market research companies have estimated that India will, in fact,overtake China when it comes to selling mobile instruments byovertake China when it comes to selling mobile instruments byaround 2010.around 2010.


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ReferencesReferences

www.telecomwww.telecomsitessitesource.comource.com

www.www.sneasneachq.netchq.net

http://www.osun.org/telecom+sector+indiahttp://www.osun.org/telecom+sector+india+ppt+ppt--pptppt--4.html4.html

www.data.www.data.bsnlbsnl.in.in

http://www.docstoc.comhttp://www.docstoc.com


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strategies related to cellular services and consumer behavior

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