SUMMER TRAINING / PROJECT

REPORT

POST GRADUATE PROGRAMME IN BUSINESS

MANAGEMENT

(PGPBM PROGRAMME) 2011-2013

PRESENT BY:

SOUMYA CHOPRA

ROLL NO: V3134, BATCH: 2011-2013

INTERNATIONAL SCHOOL OF BUSINESS & MEDIA

Performed At:

Tikona Digital Network

Acknowledgement

I take this opportunity to express my gratitude to the people who have been

instrumental in successful completion of this project.

I express my sincere gratitude to my mentor and guide Mr. Rudra Sengupta, city

sales head Tikona Digital Network and Suparna Pal for their able guidance,

motivation, and continuous support throughout my project, without which the

present work would not have been possible.

I am grateful to my college director professor Shiv Kumar Srivastava for

providing me with this opportunity.

I am also thankful to my college, seniors and friends for their constant help and

support.

I am also grateful to the faculties of International School of Business and Media

for their encouragement and guidance.

Certificate

Student Declaration

I hereby declare that I have completed the project “Use of IT and internet in

small and medium enterprise” and all other assignments as part of summer

internship project in Tikona Digital Network from 9th

April 2012 to 8th June 2012

and have handed over all reports, material to the satisfaction of my project guide

and mentor Mr. Rudra Sengupta.

The information and data given in the report is authentic and best to my

knowledge.

I have also discussed and submitted my final summer project to the company.

The results embodied in this thesis have not been submitted to any

other University or Institute for the award of any degree or diploma.

Soumya Chopra

Executive Summary

A small enterprise is one where the investment in plant and machinery is more

than Rs.25 lakh but does not exceed Rs.5 crore. A medium enterprise is one

where the investment in plant and machinery is more than Rs.5 crore, but does

not exceed Rs.10 crore. The Indian small and enterprises sector plays a pivotal

role in the country's industrial economy. It is estimated that in value, the sector

accounts for about 39 percent of manufacturing output and about 33 percent of

total exports. In recent years, the SME sector has consistently registered a higher

growth rate than the overall industrial sector.

Internet in today’s modern world comprises of many components right from

online surfing the use of internet to the extreme. In SME’s also it retain the

competitive advantage and to remain in the market it is important to incorporate

Internet marketing, web presence, e-mail, and other forms of e- commerce to

drive the marketing and sales campaign.

I did my internship at Tikona digital Network .Very new in the market, formed in

March 2009; Tikona Digital Network offers Wireless Broadband services. The

project assigned was “Use of IT and internet in small and medium enterprise” in

which I have to conduct a survey for 2 months and find out the market potential

for the data products which include Internet Leased Line and Lease Line.

Through this information I analyzed the market potential of the product. On the

basis of this analysis I have prepared a report and used pie chart, bar diagrams

and tables for better explanation. Through the survey I visited 408 companies and

had the information regarding the project. The objective of this study is to find

out the market potential for the internet usage which includes Internet Leased

Line, Wi-Fi, broadband within SME companies and what all benefits people look

in an Internet service provider and the factors influencing the buying decision of

Data Product.

Table of Contents

Acknowledgment……………………………………………………………….2

Certificate……………………………………………………………………….3

Declaration……………………………………………………………………...4

Executive Summary…………………………………………………………....5

Introduction………………………………………………………………….…8

Introduction about TIKONA………………………………………………....11

Value for the company…………………….…………12

Products and services………………………………...13

Tariff plans of Tikona…………………….………….14

Theoretical background of the topic………………………………………….18

Internet service provider………………………….....18

Stages in Product life cycle……………………….....18

Broadband Internet users…………………………....19

Leased line…………………………………………..22

Internet Leased Port…………………………………23

Objectives Of The Study………………………………………………………24

Scope Of The Project…………………………………………………………..25

Limitation Of The Project..................................................................................26

Research Methodology………………………………………………………..27

DATA ANALYSIS.............................................................................................29

Location of headquarter…………………………....29

USE of Internet…………………………………….30

Service Provider…………………………………....31

Companies using Airtel…………………………….32

Companies using BSNL……………………………33

Monthly expenses spend on internet……………….34

Satisfaction Level…………………………………..35

Looking for change provider……………………….36

Observation……………………………………………………………………..37

Conclusion………………………………………………………………………39

SWOT Analysis………………………………………………………………...40

Recommendations……………………………………………………………...41

Annexure..............................................................................................................42

Bibliography and References.............................................................................43

Introduction

Type

Broadband Service

Provider

Industry

Internet Service

Provider

Founded

2008

Headquarter

Mumbai, India

Key People

Prakash Bajpai

Product

Wireless Broadband

Website

www.tikona.in

This report has been prepared as a part of the Summer Internship program at

Tikona Digital Networks. Very new in the market, formed in March 2009,

Tikona Digital Network offers Wireless Broadband services. Right now they

operate in two areas, i.e. home segment and corporate segment. Their primary

target audiences for home segment are the authorized person of the buildings and

complexes who give permission to put Tikona Digital Network access point

(A.P) on the terrace of their buildings. Subscribers who have opted for Home

Solution can use the service on Wi-Fi enabled devices such as Smart phones,

tablets, and touch pads after this the secondary target audiences are the people

living in those complexes who use the broadband services. For corporate segment

they offer services like Direct to Office Leased Line, Differential Access,

Secured Office Wi-Fi, Secured Boardroom Internet, and Video Conferencing

Traffic Offload. Currently Tikona Digital Network is operating in 38 cities and it

has plans to expand its services in other cities also.

According to the 'Internet Economy’ in the G-20 report by the Boston Consulting

Group, SMEs constitute 17 percent of India's GDP they are responsible for 25

percent of private-sector employment but the report finds that a surprising

number of SMEs have not grasped the power of the Internet to build their

businesses or have ventured only to a very limited extent. Half of Small and

medium enterprise in India cited local business culture, a significant barrier

keeping SMEs from engaging more broadly or deeply online

The most powerful advantage of the Internet for the SMEs is an improved level

of customer interaction which is achieved by exploiting the participatory nature

of today’s internet , hence there is a huge untapped market for tikona and this

survey will help the company to know the preferences and benefit people look in

their service provider.

The project given to me here was:

1) To do a market survey in Kolkata and to know the use of IT & INTERNET in

small & medium enterprises with the help of a questionnaire. I did this survey not

as TIKONA representative but as a M.B.A. college student as a live project.

2) If some prospective customer are looking for a change in there Internet Service

Provider then my work was to provide those leads to the company and there Sales

representative will look after to convert those leads as Tikona Digital Customers.

3) To know exactly what all benefits people look in an ISP i.e. speed, rentals etc.

The project assigned to me was “Use of IT and internet in small and medium

businesses in India” in which I have to conduct a survey and find out the market

potential for the internet usage which include Internet Leased Line, Wi-Fi,

broadband within SME companies.

I did my project in the following steps:

First I collected the basic information about the product and then I decided on

target market segment then I prepared the questionnaire after that I did the market

survey and then I collected the data and analyzed the data and then prepared the

report using used pie chart, bar diagrams and tables for better explanation.

For the survey I visited 408 small and medium companies I got information about

these enterprises from books like yellow book, magazines and internet. These

entire task involved field work. Through this internship programmer I got

opportunities to meet and talk with corporate and got ample field experience. It

has been a great learning experience working with TIKONA DIGITAL

NETWORKS.

collection of basic

information

target market segmantation

survey data

collection analyzing the

data preparing the

report

Introduction About

TIKONA:

Tikona Digital Networks (TDN) is an Indian Internet service provider founded in

the year 2008 by Prakash Bajpai it is engaged in building the next generation

wireless broadband services for home and enterprise customers. Its head office is

in Mumbai. It provides fourth generation or 4G wireless broadband

internet OFDM (Orthogonal frequency-division multiplexing) and MIMO

(multiple out multiple input) wireless technology to provide broadband services.

TDN has an all India Class-A ISP license granted by the Ministry of

Communications, Govt. of India. It would also be building a comprehensive

services framework that can deliver leading edge voice, video, IT applications

and multimedia content services over any broadband or IP-centric network. Such

a framework can be outsourced by service providers globally, who desire to offer

next generation services to their customers. TDN has engaged the best-in-class

technology partners to build the required capability frameworks.

The companies most of the investment from private equity companies Goldman

Sachs Investment Partners (22.8 percent stake), in division India Partners

(13.46% stake), Oak India Investments (23.55% stake) and Green Lotus

Investments (10.09% stake). No of Employees are 251-500 and the Turnover in

Crs – 10-100 Crs.

Values for company: 1) Customer First

The core business strategy is guided by customer value, customer sensitivity

and customer convenience.

2) Respect for Talent

They create and maintain a transparent and respectful work environment that

helps in attracting, retaining and nurturing the best talent. They encourage an

open work culture that is conducive to making work joyful.

3) Innovation

Innovation is driving force and they create environment for our people to

conceive and incubate new ideas in order to develop and deliver useful services

and solutions for their customers, thereby sustaining their competitive

advantages.

4) Win Win for all

It works for the success of their customers, investors, employees and

ecosystem partners. It believes in empowering, motivating, appreciating and

inculcating a sense of ownership among the members of TDN eco-system.

5) Integrity

They are accountable to all their stakeholders, regulators, government and

customers and believe in adopting a culture of ethical business practices,

transparency and highest standards of corporate governance

6) Corporate Social Responsibility

Tikona imbibe in high standards of social and civic responsibility, as they

firmly believe that they should contribute to the society in which they operate.

It aims at providing the community technologies and solutions to support

them in their growth and development. TDN is deeply committed to the cause

of reducing the digital divide that exists in the country across geographies and

different socio-economic segments. In this regard, TDN plans to extend

Broadband and IT services at marginal costs to schools, healthcare institutes

and government or non-government establishments engaged in providing

services to masses that do not have access to such services.

Three prolonged strategy:

True to its name, which means triangle, company has been following a three-

pronged strategy to capture the broadband market. The strategy is to create:

• 1) A coverage leadership (presence across India)

• 2) A cost leadership (low tariff plans)

• 3) A capacity leadership (to serve a large number of customers)

Products and services:

Currently Tikona digital network services are available in 38 cities across India.

It offers varied services to home and enterprise users.

• FOR BUSINESS:

Tikona Enterprise Solutions offers the following products and services to

business:

• Direct to Office Leased Line: For near 100% Internet uptime with link

load balancing and failover routing.

• Differential Access: For customized bandwidth per user group.

• Secured Office Wi-Fi: Allows employees to work from anywhere in the

office using devices such as tablets, notebooks, smart phones.

• Secured Boardroom Internet: For easy and secure guest Internet

access.

• Video Conferencing Traffic Offload: For simplifying and optimizing

your MPLS VPN bandwidth.

FOR HOME:

Tikona Enterprise Solutions offers the following products and services to

houses: Subscribers who have opted for Home Solution can use the service

on Wi-Fi enabled devices such as Smart phones, tablets, touch pads it offers

services like:

• Speed up to 4 Mbps

• On call tech support

• Complementary anti-virus

• Bill limit guarantee.

Tariff Plans of Tikona Digital Network:

Customer has a wide choice of tariff plans depending on their needs of speed,

consumption (usage) and budget. Customer Service Experience is based on Tariff

Plan selected.

Circuit Breaker Plans:

Provide up to 2Mbps speed within specific Download Limit. After the

Download Limit, connection speed reduces up to 64 kbps. Customer has a

choice to restore speed back to 2Mbps by paying additional amount.

Unlimited Plans:

Provide unlimited usage with download speeds up to Plan Specific Bandwidth

(300 Kbps/ 600 Kbps/ 750 Kbps/ 1Mbps/ 2Mbps). These are peak Speeds and

actual Usage speeds may be lower.

Fixed Monthly Charge Plans:

Provides speeds up to 2 Mbps as Bonus Bandwidth and afterwards

speeds256kbps, 512kbps, 1Mbps and 2Mbps.

Future Plan:

Tikona digital network would also be building a comprehensive services

framework that can deliver leading edge voice, video, IT applications and

multimedia content services over any broadband or IP-centric network. Such a

framework can be outsourced by service providers globally, who desire to offer

next generation services to their customers. Tikona plans to launch TD-LTE-

based 4G wireless broadband services in Gujarat, Himachal Pradesh, Rajasthan,

Uttar Pradesh (East) and Uttar Pradesh (West) in October 2012. Malaysia's

mobile operator Axiata has been holding discussions with Tikona and may pick

up a stake in the company.

Currently Tikona’s postpaid services are available in these cities and the

company has plans to extend its services in other cities also.

Agra Ahmedabad Allahabad Bengaluru Bhopal Bhubaneswar

Chennai Coimbatore Delhi Guntur Hubli Hyderabad

Indore Jabalpur Jaipur Kanpur Kochi Kolkata

Kota Lucknow Madurai Mangalore Meerut Mumbai

Mysore Nagpur Nasik Pondicherry Pune Raipur

Rajkot Solapur Surat Trichy Vadodara Varanasi

Vijayawada Vizag

India Broadband Wireless Auction (BWA) Auction Results

In the 4G auction state BSNL and reliance infotel were the pan India spectrum

winner other winners were Bharati airtel (4) aircel (8) Tikona (5) with Gujarat

being the key circle, MTNL (2) , Qualcomm (4)

Theoretical background of

the topic

Internet country code: .in

Internet Service Providers (ISPs): 180 in the year 2010

Internet hosts: 4,536,000;

Internet users: 121 million

Internet service provider:

An Internet service provider (ISP) is an organization that provides access to

the internet. Internet service providers can be either community-owned and non-

profit, or privately owned and for-profit. Access ISPs directly connect clients to

the Internet using copper wires, wireless or fiber-optic connections. In last

several years, India has seen the number of internet users in the country,

increasing by leaps and bounds. Today almost every house, every individual and

every office has an internet connection. Several public and private sector telecom

giants have come up in India, offering customized internet solutions. The internet

service providers in India are long in the process of offering quality internet

services suiting the need and pocket of the users.

Stages in Product life cycle:

It can be asserted that the Internet service is very much in its initial stages in

India. It is still in earlier stages of its growth phase as shown in Figure:

Stage of Internet Service in India in the Product life cycle.

List of internet service providers in India:

1. State owned:

BSNL - servicing all of India except Mumbai and Delhi. Triple-play

Broadband Services provided by ADSL and VDSL. Also providing

internet services over GPRS, 3G, as well as WiMax

MTNL - servicing Mumbai and Delhi. Triple-play Broadband Services

provided by ADSL under the "Tri-Band" brand. Also providing GPRS

and 3G internet services.

2. Privately owned, nationwide:

Airtel - ADSL, GPRS & 3G

Aircel - GPRS & 3G

Idea - GPRS & 3G

MTS India - CDMA/EV-DO

Reliance Communications - ADSL, GPRS & 3G, Metro-Ethernet,

CDMA/EV-DO, Wimax

Tata DoCoMo - GPRS & 3G

Tata Indicom - ADSL, CDMA/EV-DO, Metro-Ethernet, WiMax

Tikona Digital Networks - Wireless 4G Broadband

3. Privately owned, regional:

Asianet Data Line - Broadband over Cable, Kerala

Beam Telecom - FTTB, Hyderabad

Fivenet - Broadband over Cable (Mumbai, currently expanding to Pune,

Haryana and other regions)

Honesty Net Solutions - Broadband over Cable, Mumbai

IOL Netcom Alliance Broadband Pvt. Ltd. - Broadband Over cable, Kolkata

Private operators hold 88.56% of the wireless market share where as BSNL

and MTNL, two PSU operators hold only 11.44% market share.

Broadband Internet users:

Internet access in India is largely provided by the private sector and two state-run

companies and is available in a variety of forms, using a variety of technologies,

at a wide range of speeds and costs. The country has the world's third

largest Internet users with over 121 million users (of whom 59% who only access

the internet via mobile devices) as of December 2011. However, the Internet

penetration in India is one of the lowest in the world and only accounts for 8.4%

of the population compared to OECD counties where average penetration rate is

over 50%. The number of broadband Internet subscribers in India has started to

become more significant, having more than doubled in the two-year period to

end-2009. DSL, whilst holding slightly more than 75% of the local broadband

market, was steadily losing market share to other non-DSL broadband platforms,

especially to wireless broadband platforms. The 3G auction was followed by an

equally high profile auction of 4G spectrum that set the scene for a competitive

and invigorated wireless broadband market.

The growth in number of broadband connections in India has accelerated since

2006. As of December 2011, total Internet connections stood at 22.39 million,

while the broadband Internet connections in India had reached 13.35 million

constituting 1.0% of the population. India has one of the lowest penetrations of

broadband connectivity in the world.

A number of private Internet Service Providers (ISPs) offer services in India,

many with their own local loop and gateway infrastructures. BSNL and MTNL

have continued to dominate the ISP market because of their existing massive

copper infrastructure in the last-mile across the nation. An estimated 60% of

Internet users were still regularly accessing the Internet via the country's more

than 10,000 cyber cafes.

According to International Telecommunication Union, the international average

broadband speed is at 5.6 Mbps, whereas in India the average speed hovers at

256 kbit/s which is the minimum speed set by TRAI. The government declared

2007 to be "the year of broadband." Four years later, Indian broadband failed to

deliver download speeds of which other developed nations delivers. South Korea

led the list with an average of 43 Mbit/s, followed by Japan (10.6 Mbit/s) and

United States (4.6 Mbit/s).

India broadband growth is hampered by various challenges, including a

complicated tariff structure, metered billing, higher charges for right of way and

absence of local-loop unbundling. Average Internet speed in India is as low as

0.8Mbit/s. Out of the total Internet population 35% is still below 256kbit/s. To

compete with international standards of defining broadband speed the Indian

Government has taken aggressive step of proposing the $13 billion national

broadband network to connect all cities, towns and villages with a population of

more than 500 in two phases targeted for completion by 2012 and 2013.The

network will be capable of handling speed up to 10Mbit/s in 63 metropolitan

areas and 4Mbit/s in additional 352 cities.

Leased line:

A leased line is a service contract between a provider and a customer, whereby

the provider agrees to deliver a symmetric telecommunications line connecting

two or more locations in exchange for a monthly rent (hence the term lease.

Leased lines can be used for telephone, data or Internet service. Typically, leased

lines are used by businesses to connect geographically distant offices. Unlike

dial-up connections, a leased line is always active. The fee for the connection is a

fixed monthly rate. The primary factors affecting the monthly fee are distance

between end points and the speed of the circuit. Because the connection does not

carry anybody else's communications, the carrier can assure a given level of

quality.

An internet leased line is a premium internet connectivity product, delivered over

fiber normally, which is dedicated and provides uncontended, symmetrical

speeds, Full Duplex.

In India, leased lines are available at speeds of 64 kbit/s, 128 kbit/s, 256 kbit/s,

512 kbit/s, 1 Mbit/s, 2 Mbit/s, 4 Mbit/s, 8 Mbit/s, 16 Mbit/s Customers are

connected either through OFC, telephone lines ADSL, or through Wifi.

Customers would have to manage their own network termination equipment,

namely the Channel service unit and Data service unit. Most service providers

give 99% uptime guarantee.

Internet Leased Port:

ILP stands for Internet Leased Port. This is a number that indicates what kind of

protocol a server on the Internet is using It is a high speed, dedicated premium

bandwidth designed to specifically meet the corporate user’s

requirement. Internet leased port bandwidth is delivered to the customers with

assured SLA parameters and service commitment on critical network

performance metrics like latency, packet drop, and network availability etc.

Internet leased port services are designed to ensure allow the corporate users to

run their web based mission critical applications on Internet with reliable network

performance at all times. Internet bandwidth is delivered to the customers

through wired/wireless last mile access.

Objectives Of The Study

Primary Objectives:

To find out the market potential for the internet usage which include

Internet Leased Line, Wi-Fi, broadband within SME companies.

To find out the factors influencing the buying decision of internet services.

Secondary Objectives:

To know exactly what all benefits people look in an Internet service

provider.

To find about the prospective customers of the company

To find out the brand switch over ratio among unsatisfied customers of

Wire-less internet services.

Scope Of The Project

The company wanted to know what other value added services does their

clients expect from other than existing ones in order to improve customer

satisfaction and customer loyalty.

The study helps to understand whether the enterprises are satisfied with

their current internet service provider.

The study helps to identify the potential market customers for tikona

digital network.

To find the various factors that cause the dissatisfaction to the customer

and take steps to overcome it

.

The study help find about the benefits which an enterprise expects from its

ISP.

LIMITATION OF THE

PROJECT

Research was done only in few areas of Kolkata hence the applicability

of the study in different region is restricted.

It was difficult getting time and access to senior level managers due to

their busy schedules and prior commitments.

Few questions majority of respondent were not able to answer:

1) If looking for change in service provider

2) Reason for change in service provider

3) Monthly expense for internet usage

If the interviewee misunderstood the question, it may lead wrong data

collection

Time was not sufficient to conduct a detailed study.

In some cases where the head office was the main decision maker there

actual decision maker could not be contacted.

Research Methodology

Research methodology is a way to systematically do the job. It may be

understood as a science of studying how research is done scientifically. The most

desirable approach with regards to the selection of the research methodology

depends on the nature of particular work, time and resources available along with

the desire level of accuracy. The Indian communications scenario has

transformed into a multiplayer, multi product market with varied market size and

segments.

Research Design:

This research design is exploratory as we need to find out the scope of IT and

internet for SME segment in Kolkata. The method of data collection is qualitative

and descriptive in nature i.e. survey and observation based research.

The study is done in steps stated below.

1) Understanding the difference between Broadband and Data Products i.e.

Lease Line, Internet Lease Line.

2) Understanding the structure of small and medium businesses

Collection of data: Primary data- primary data was collected through questionnaire and personal

interview of different companies in different parts of Kolkata.

Secondary data - secondary data was collected through internal system Internet,

magazines and newspaper etc.

Sample Design:

The sample was drawn by using Judgmental Sampling Techniques, as we need to

do fill the questionnaire from someone who deals in internet connection of his

organization. Apart from that, Judgmental Sampling Techniques are

more economical than any other.

Target Population:

Occupation – Professional working in small and medium enterprise like Software

companies, Colleges, Apparels retailer, Manufacturers, and other companies.

Age – 22-60 years

Location – Kolkata

Gender- Male/ Female

Sample size:

A sample size of 408 was taken. The samples were randomly selected from the

population to gather their feedbacks

Sampling Process:

Sampling universe: Kolkata‡

Sampling technique: Random sampling

Sample size: 408 respondents

Research instrument: Personal interview with structured questionnaire

DATA ANALYSIS

Location of headquarter

Question. Is the headquarter of the company located in Kolkata or outside

Kolkata?

Headquarter in Kolkata Headquarter outside

Kolkata

262 145

In the survey it was found that majority of the small and medium industries have

their headquarters’ in Kolkata. Out of the 407 surveys 262 companies have their

headquarters in Kolkata and 145 companies have their headquarters outside

Kolkata i.e. 64% companies have their headquarter in Kolkata and 36%

companies do not have their headquarters in Kolkata.

64%

36%

Ho in kolkata Ho not in kolkata

USE of Internet

Question . What do you use internet for messaging , net banking , online sales or

online purchase.

Messaging Net banking Online sales Online purchase

312 303 297 276

It was found that 312 enterprises use internet for messaging, 303 use internet for

net working , 297 use internet for online sales and 276 use it for online

purchases.

250

260

270

280

290

300

310

320

Messaging Net banking Online sales Online purchase

Service Provider

Question: Name of internet service provider of the organization?

This question was asked to know which service provider is preferred by the

organizations.

Airtel Reliance BSNL Tata More than

one

Any other

164 61 131 33 11 8

It was found that airtel is the most preferred service provider followed by bsnl

and reliance. Their were 11 companies which use more than one service provider

and 8 used other providers.

0

20

40

60

80

100

120

140

160

180

airtel reliance bsnl tata morethan 1

anyother

Series1

Companies using Airtel

This analysis is done to find out the total percentage of companies using airtel.

Out of 408 companies were using airtel was 162.

Total surveys Airel

408 162

It was found that out of the total survey of 408 companies using airtel is 162 that

is 29% of the sample population use Airtel as their service provider.

71%

29%

Chart Title

total airtel

Companies using BSNL

This analysis is done to find out the total percentage of companies using bsnl

Total surveys bsnl

408 131

It was found that out of the total survey of 408 companies using bsnl is 131 that

is 24% of the sample population use bsnl as their service provider.

76%

24%

total bsnl

Monthly expenses spend on internet.

Question: this question was asked to find out how much does an enterprise spend

on internet monthly.

>500 500-1000 1000-2000 2000-3000 3000-5000 <5000

5%

9% 11% 27% 21% 18%

In the survey it was found that 5% of the enterprises spend less than 500 Rs , 9%

enterprises spend from Rs 500 to 1000 , 11% of the enterprises spend from Rs

1000- 2000 , 27% spend from Rs 2000-3000 , 21% spend from Rs3000-5000 ,

and 18% of the enterprises spend more than 5000.

0%

5%

10%

15%

20%

25%

30%

35%

>500 500-1000 1000-2000 2000-3000 3000-5000 <5000

monthly expense spend on internet

Series1

Satisfaction Level

Question: this question was asked to find out how satisfied are the customers

with their current internet service provider .

Not satisfied Somewhat not

satisfied

Somewhat

satisfied

satisfied Very much

satisfied

0 53 122 131 102

In the survey it was found that 13% people were somewhat not satisfied with the

performance of their internet service provider, 30% of people were somewhat

satisfied, 32% people were satisfied and 25% people were very much satisfied.

Not Satisfied 0%

some what not satisfied

13%

some what satisfied

30%

satisfied 32%

very much satisfied

25%

Chart Title

Looking for change provider

Question: this question was asked to find out if enterprises want to change their

internet service provider

Yes No Maybe

49 270 89

It was found that 66% people do not want to change their service provider , 12%

enterprise want to change their ISP while 22% are not sure.

12%

66%

22%

Chart Title

yes no maybe

Observation

In most of the small and medium enterprise , internet play an important

role in day to day activities

A large number of SMEs have not grasped the power of the Internet to

build their businesses- or have ventured only to a very limited extent.

In the survey it was found that majority of the small and medium industries

have their headquarters in Kolkata. Out of the 408 surveys 262 companies

have their headquarters in Kolkata and 145 companies have their

headquarters outside Kolkata i.e. 64% companies have their headquarter in

Kolkata and 36% companies do not have their headquarters in Kolkata.

When asked for what purpose does small and medium enterprises use

internet, it was found that majority of enterprises use internet for

messaging, the second most important usage for internet was for

networking.

It was found that 312 enterprises use internet for messaging, 303 use

internets for networking, 297 use internets for online sales and 276 use it

for online purchases.

Quality of service plays an important role in retaining the old customers

and making new customers that’s why a large majority of population

prefer airtel over any other inter service provider because of the quality of

service it provide.

Out of 408 survey done 164 enterprises use airtel as their service provider,

131 enterprises use Bsnl, 61 use Reliance, 33 use Tata, Their were 11

Companies which use more than one service provider and 8 used other

providers.

As it is newly launched it has to face tough competition from other service

providers which are already well established in the market for example:

Airtel, Bsnl, Tata etc.

In the survey it was found that 5% of the enterprises spend less than 500

Rs , 9% enterprises spend from Rs 500 to 1000 , 11% of the enterprises

spend from Rs 1000- 2000 , 27% spend from Rs 2000-3000 , 21% spend

from Rs 3000-5000 , and 18% of the enterprises spend more than 5000.

It was found that 13% people were somewhat not satisfied with the

performance of their internet service provider, 30% of people were

somewhat satisfied, 32% people were satisfied and 25% people were very

much satisfied.

49 of the small and medium enterprises were looking for changing their

internet service provider while 89 enterprises were not sure and 270 were

happy with their current ISP. Thus 66% people do not want to change their

service provider, 12% enterprise want to change their ISP while 22% are

not sure.

After sales services plays an important role in customer satisfaction hence

after sales services of a company must be very good.

Conclusion

In last several years, the numbers of internet users have increased by leaps

and bounds.

Many of the Small and medium enterprise in India cited local business

culture, a significant barrier that is keeping them from engaging more

broadly or deeply online. Hence there is a huge untapped market for

tikona.

For SME’s to have a competitive advantage and to remain in the market it

is important to incorporate Internet marketing, web presence, e-mail, and

other forms of e- commerce to drive the marketing and sales campaign.

Tikona was targeting those companies whose head offices are in Kolkata

as in most of the cases the head office decide which internet service

provider the company will use.

The company has different strategy of marketing, TDN’s strategy is

acquiring maximum buildings, so that company can push its product in

market .TDN is successful in their strategy because slowly but steady it is

capturing more & more market share of wireless broadband.

13% SMEs who were somewhat not satisfied with the performance of

their internet service provider and 30% of the SMEs who somewhat

satisfied with the performance of their internet service provider could be

the prospective customer of the company.

People today don’t have time to wait for anything, so increased internet

speed is making them more inclined towards it.

Some customers plan to disconnect their service provider as billing is very

high and after sale service is not good.

Most preferable speed among the SME clients is 2 Mbps, 1Mbps and

512Kbps so there is more prospects for tikona to provide them better speed

against what they are using.

SWOT Analysis

Strengths

1. Founded by veterans of telecom

industry i.e. Mr. Prakash Bajpai.

2. Have latest 4th generation OFDM

and MIMO technology

Opportunities

1. Huge Untapped Market

2. Increased usage of E-governance,

E-banking and E-commerce

3. Increasing number of dissatisfied

customers of existing broadband

providers

Weakness

1. Newly launched, have to face tough

competition

2. Lower level of after sales services.

Threats

1. Cut throat competition which will

make it difficult to penetrate into

the market

Recommendations

I came across many small and medium enterprises that weren’t aware

about Tikona so there is a need to build brand awareness. It can be done by

sponsoring some public event, use of radio, TV & newspapers.

Tikona should introduce celebrity endorsement so that the awareness about

tikona can be introduced.

I suggest company to print leaflets and pamphlets in local languages and

regional newspapers as well as it will increase the reachability to the

customers.

Tikona may also introduce some sales promotion such as cash discounts

such promotional activities would further strengthen the market share of

the Company.

The customer care center should pay more attention in receiving and

solving customers complaints.

It was observed that many of the potential customers are already satisfied

with their current brand. So the company will have to go an extra mile to

convert them into Tikona Digital users. Following measures can be taken:

Introductory offer of complimentary 3 GB for a selection of plan

more than 25 GB.

Give a trial period of 1 week to the prospective customers as it will

increase their trust and reliability.

ANNEXURE

SURVEY OF TIKONA DIGITAL NETWORK

Company Info

Name

Nature of

Business

HO Location Website

CTO/ CIO

Name

Designation

Mobile No.

E-mail ID

Factory Branch Office Warehouse C&F

No. of Units

People Strength

Use of IT

Systems

Accounts Finance Stock Mgmt. HR CRM

Currently in Use No. of Users

(PCs)

Name of

Package (or in-

house dev.)

Satisfaction

Level (1 to 5)

Future Plan

Internet Use Messaging Net Banking Online Sales Online

Purchase

Bibliography and References

Books:

Kothari C.R. (2008) Research Methodology: Methods and Techniques.

Philip Kotler and Kevin Lane Keller (2005), Marketing Management

Twelfth edition.

Newspaper:

The Telegraph

The Economic Times

Magazine:

Business Today

Websites:

www.tikona.in

www.managementstudyguide.com

www.fundoodata.com