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PROJECT REPORT ON

Measuring the Customer Satisfaction in Telecom Sector among Professional Students A Study of Aircel Kashmir
Project Report Submitted In Partial Fulfillment Of The Requirement For The Award Of MBA

Submitted By: Mateen Yousuf Roll no: 304

Submitted To:Sajad Ahmad Mir HR Head, Aircel J&K

The Business School University of Kashmir Srinagar- 190006

In the name ofAllah

Dedicated
To all the students who have lost their precious lives during 23 years of armed conflict in the state of J&K. May Allah bless them with a place in paradise and give patience and courage to their parents to bear such irreparable loss.

For whom Allah has decreed: So your Lord has decreed: Do not worship anyone but Him and be good to your parents. If one or both of them grow old in your presence, do not say fie to them, nor reprove them. But say gentle words to them, and look after them with kindness and love say O Lord, have mercy on them as they nourished me when I was small {Al Quran - Surah - 17: Verse - 23}.

Acknowledgements

In essence Man is incomplete. His resources are limited and his faculties are finite. Every big task he wants to accomplish inevitably involves many helping hands. No individual can ever claim to have carried out any work of paramount importance and magnitude without the support and patronage of others. From the core of my heart, I feel it obligatory to mention that credit in its entirety goes to Almighty Allah who gave us courage to take up this project and it were his blessings that the Project work was completed within the stipulated period. The writing of a project report may be a lonely and isolated experience, yet it is obviously not possible without the personnel and practical support of numerous people. Thus my sincere thanks go to Miss Sumaira Nissar (Faculty Guide) who endured to explain things clearly and made my project a rewarding experience for me. I would also like to thank Prof. (Dr.) S. Mufeed, Director Business School for his valuable suggestions and words of concern. I would also like to thank Mr. Sajad Ahmad Mir, HR Manager, Aircel Srinagar who provided me access to the valuable documents of postal services existing policies and procedures. I would also like to extend my profound thanks to the faculty members of our Department and my colleagues and family members: Mateen Yousuf, Shaikh Owais, Shah Iqbal and Tabish Ashraf for their encouragement and sound advice. I shall be failing in my duty if I do not express my gratitude to my parents for their constant support and guidance. I thank Almighty Allah for giving me such a wonderful parents in them.

CERTIFICATE
This is to certify that the project entitled, Measuring the Customer Satisfaction in Telecom Sector among Professional Students A Study of Aircel Kashmir , is a bonafide record of interim report carried out by Mr. Mateen Yousuf, bearing registration number 24178-IC-2008 a student of The Business School, University of Kashmir (Session 2011-2013), has successfully completed his Project for the partial fulfillment of the requirements of the award of the degree of Master of Business Administration of University of Kashmir, Srinagar, J&K. To the best of my knowledge and belief, this project is the original effort and contribution which he has worked sincerely under my guidance in this duration. The project report has not been submitted earlier to this University or to any other University/Institutions.

Wishing him good luck for a successful career and all future endeavors.

Mr. Sajad Ahmad Mir

Project Guide

DECLARATION
I hereby declare that research report entitled Measuring the Customer Satisfaction in Telecom Sector among Professional Students A Study of Aircel Kashmir is my original work done on behalf of The Business School, University of Kashmir under the guidance of Mr. Sajad Ahmad Mir (HR Head Aircel Srinagar)and Faculty Guide Miss Sumaira Nissar.

have

not

submitted

this

research

report

to

any

other

organization/institution for any type of materialistic goal/reward or incentive.

(Mateen Yousuf)

Table of Contents
Abbreviations8 Review of Literature.9 Research Gap.11 Research Objectives..12

Section 1: Introduction to the Topic 1.1 Executive Summary15

Section 2: Industry Profile 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Evolution of Telecom Sector in India.17 Current Status of Telecom Sector in India...20 Role in Indias Development Contribution to GDP..22 Employment..23 Foreign Direct Investment (FDI).23 Growth of IT-ITeS and Financial Sector...26 Factors Facilitating Growth of the Sector.27
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2.8 Key Statistics.29 2.9 Market Dynamics..30 Section 3: Company Profile 3.1 3.2 3.3 3.4 3.5 3.6 History of Aircel.35 Goals and Values.35 Mission...36 Geographical Distribution of Aircel37 Products and Services Offered..40 Strategic and marketing Analysis..43

Section 4: Research Methodology 4.1 4.2 4.3 4.4 4.5 4.6 Methodology...........49 Research Design.49 Sources of Data...49 Sampling .........50 Data Collection Tools.50 Limitations of the study..51

Section 5: Analysis and Interpretation 5.1 5.2 5.3 5.4 Interpretation of questions52 Findings...85 Conclusion..86 Suggestions87

List of tables and Figures.88 Appendix: Survey Questionnaire....89 Bibliography91


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Abbreviations
1. 2. 3. 4. 5. 6. TSM Territory Sales Manager ZSM Zonal Sales manager FoS Feet on Service P/S- Product & service P.O- Purchase order P.R- Purchase requisition

Review of Literature
Although services are considered to be a major part of the economies of the industrialized countries (Bateson, 1989; Ginzberg & Vojta, 1981; Koepp, 1987; World Bank, 1991) this was not always the case. When discussing services, and their intangibility, Adam Smith described them as: unproductive of any value (Smith, 1977 [1776], p430). However Alfred Marshall (1890) challenged this view by stating that the production of services was equally capable of producing utility to the user of the service as the production of a tangible good and that without the services the tangible products may not exist. The definition of services has been the subject of much debate (Gronroos, 2000; Lovelock et al., 1999; Palmer, 1994; Zeithaml & Bitner, 1996). Kotler and Armstrong (1991) define services as: an activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product. (Kotler and Armstrong cited in Palmer, 1994, p1). However Zeithaml andBitner (1996) define services as: deeds, processes, and performances (p5). Gummerson 1987 defined services as: something which can be bought and sold but which you cannot drop on your feet. (Gummesson cited in Gronroos, 2000, p46). Gronroos (2000) defines services as: a process consisting of a series of more or less intangible activities that normally, but not necessarily always, take place in interactions between the customer and the service employees and/or physical resources or goods and/or systems of the service provider, which are provided as solutions to customer problems. (p46) An interesting point, identified by Zeithaml and Bitner (1996) and Gronroos (2000), is that services are not exclusively delivered by service only organisations such as banks, HSBC, Natwest, insurance companies, Norwich

Union, lawyers, accountants, or dentists; they are part of the product offering by many manufactured-goods producers. Administrative activities such as invoicing and handling claims are part of the service according to Gr onroos (2000). Zeithaml and Bitner (1996) use examples such as car manufacturers offer of warranties and repair services or computer manufacturers offer of warranties, maintenance and training. Therefore when discussing services it is important to recognise that a wide range of industries can be included.Although these definitions have nuances, they all state that services are intangible. However since intangible services are not exclusive to pure service organisations, services and manufactured products tend to be placed somewhere along the tangibility spectrum, as shown below (figure 1), with manufactured goods being more tangible and services being more intangible (Lovelock et al., 1999; Palmer, 1994; Zeithaml&Bitner, 1996). Therefore it is the intangible services that will be addressed in this research, as shown in the tangibility spectrum (figure 1) and for the purpose of this research Gronroos (2000) definition of services, as quoted above, will be used. Although intangibility is one of the main determinants of services it is not the only characteristic of services that differentiate them from manufactured goods (Lovelock et al., 1999; Palmer, 1994; Zeithaml&Bitner, 19 96). Others include Inseparability, perishability, heterogeneity and lack of ownership (Gronroos, 2000; Hoffman & Bateson, 2002; Lovelock et al., 1999; Palmer, 1994; Zeithaml&Bitner, 1996) Pure services have no tangible properties. They cannot be touched, seen or tasted.Goods can be touched, seen and tasted. Therefore services cannot be evaluated prior to purchase (Hoffman & Bateson, 2002; Lovelock et al., 1999; Palmer, 1994; Zeithaml&Bitner, 1996). According to Palmer (1994) this means that consumers of services have less certainty about the outcome of services when choosing between them. The level of uncertainty needs to be reduced via branding and the incorporation of physical evidence (Palmer, 1994), such as HSBCs bank statement folder or Easyjetsinflight magazine. Zeithaml&Bitner (1996) state that intangibility means that services cannot be inventoried, creating difficulties in the management of demand fluctuations. For example during busy periods demand for Ryannaires flights will increase.

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To take advantage of this they may buy more planes. However when the demand falls, they may have excess capacity. Services can easily be copied and cannot be patented (Zeithaml&Bitner, 1996). Ryannaire did this by coping Southwestern Airlines operation, to reduce their turnaround times. However Gronroos (2000), Zeithaml&Bitner (2000) and Lovelock (1991) present a different view of intangibility, stating that consumers do not always perceive manufactured goods as tangible. For example a kilo of apples could be perceived in an intangible way as they are going to be eaten the tangibility of the apple is lost and the consumer simply has satisfied the need to eat. Most of the customers preferred low call rate in their connection. Most of the Aircel customers are influenced by advertisement.(Khan). The disconnection of the call between callings creates a negative impact on the customers mind; most of customers are facing this problem(Abhishek). Many customers are not using the internet services of aircel because of low net speed as compared to other competitors in the market. So the company needs to maintain the good net speed as compared to other competitors to increase the users of internet.(Mahajan, 2009).Customers like the good services so if the services can be increased and that of the good quality then the customer will like to use the product.(Bhardwaj, 2011).

Research Gap:
No research has been conducted to measure the customer perception and satisfaction of Aircel services among the students of J&K especially Management, Engineering and other professional students. Therefore, in accordance with the data asked by the Marketing Department, Aircel, we segmented the students of Professional Courses in Undergraduate courses (BBA, B.E, and LLB) and Post-Graduate Courses (MBA, LLM, and MCA) and got their feedback via Structured Questionnaire. No academic research has been conducted to get the feedback and assess complaints regarding the service and customer care services. 11

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1. To study upon sales, promotion and advertisement of Aircel. 2. To study the problems faced by the respondents with the service of Aircel. 3. To study customer satisfaction level among students pursuing higher education on Aircel Service. 4. To analyze the level of awareness about Aircel services. 5. To make suggestions in the light of the findings of the study.

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1.1 Executive Summary


The word telecommunication was adapted from the French word tl communication. It is a compound of the Greek prefix tele meaning "far off", and the Latin communicare, meaning "to share". Telecommunication is the transmission of information, over significant distances, to communicate. Customer satisfaction is a part of customers experience that exposes a suppliers behavior on customers expectation. It also depends on how efficiently it is managed and how promptly services are provided. This satisfaction could be related to various business aspects like marketing, product manufacturing, engineering, quality of products and services, responses customers problems and queries, completion of project, post delivery services, complaint management etc.

Customer satisfaction is the overall essence of the impression about the supplier by the customers. This impression which a customer makes regarding supplier is the sum total of all the process he goes through, right from communicating supplier before doing any marketing to post delivery options and services and managing queries or complaints post delivery. During this process the customer comes across working environment of various departments and the type of strategies involved in the organization. This helps the customer to make strong opinion about the supplier which finally results in satisfaction or dissatisfaction.

Customers perception on supplier helps the customer choose among the supplier on basis of money value and how well the delivered products suit all the requirements. The suppliers services never diminishes after the delivery as customer seeks high values post marketing services which could help them use and customize the delivered product more efficiently. If he is satisfied with the post marketing services then there are good chances for supplier to retain the customers to enhance repeated purchases and make good business profits.

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It is necessarily required for an organization to interact and communicate with customers on a regular basis to increase customer satisfaction. In these interactions and communications it is required to learn and determine all individual customer needs and respond accordingly. Even if the products are identical in competing markets, satisfaction provides high retention rates. For example, shoppers and retailers are engaged with frequent shopping and credit cards to gain customer satisfaction, many high end retailers also provide membership cards and discount benefits on those cards so that the customer remain loyal to them.

Higher the satisfaction level, higher is the sentimental attachment of customers with the specific brand of product and also with the supplier. This helps in making a strong and healthy customer-supplier bonding. This bonding forces the customer to be tied up with that particular supplier and chances of defection very less. Hence customer satisfaction is very important panorama that every supplier should focus on to establish a renounced position in the global market and enhance business and profit.

This research was conducted with the view of assessing customer satisfaction of Aircel Service vis a vis Competitors among the students of Kashmir division in J&K.

Through this research one of the main objectives is to explore the reason what are the reasons as to why customers are defecting to other networks in J&K and the other objective is to assess the customer satisfaction of various factors of service provider like responsiveness, reliability and assurance.

Though the questionnaire was designed based on the parameters set out on the SERVQUAL model , the interpretation was done based on individual questions as well as the information given away by the respondents outside the questionnaire.

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This study was clubbed along with two other researches conducted of the same service provider in Data services and Measurement of the retailer satisfaction and assessing their complaints by students of The Business School in partial fulfillment of their course degree in MBA. Thus we got a holistic and all inclusive view of the real problems faced by the Service providers and customers and intermediaries. This research highlights various aspects of the role and importance of decentralized decision making so that Aircel J&K may create customized products and services based on local needs and demands.

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The telecom industry has been divided into two major segments, that is, fixed and wireless cellular services In todays information age, the telecommunication industry has a vital role to play. Considered as the backbone of industrial and economic development, the industry has been aiding delivery of voice and data services at rapidly increasing speeds, and thus, has been revolutionizing human communication. Although the Indian telecom industry is one of the fastest-growing industries in the world, the current teledensity or telecom penetration is extremely low when compared with global standards. Indias teledensity of 36.98% in FY09 is amongst the lowest in the world. Further, the urban teledensity is over 80%, while rural teledensity is less than 20%, and this gap is increasing. As majority of the population resides in rural areas, it is important that the government takes steps to improve rural teledensity. No doubt the government has taken certain policy initiatives, which include the creation of the Universal Service Obligation Fund, for improving rural telephony. These measures are expected to improve the rural tele-density and bridge the rural-urban gap in teledensity.

2.1 Evolution OF Telecom Sector in India


Indian telecom sector is more than 165 years old. Telecommunications was first introduced in India in 1851 when the first operational land lines were laid by the government near Kolkata (then Calcutta), although telephone services were formally introduced in India much later in 1881. Further, in 1883, telephone services were merged with the postal system. In 1947, after India attained independence, all foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a body that was governed by the Ministry of Communication. The Indian telecom sector was entirely under government ownership until 1984, when the private sector was allowed in telecommunication equipment manufacturing only. The government concretized its earlier efforts towards developing R&D in the sector by setting up an autonomous body Centre for Development of Telematics (C-DOT) in 1984 to

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develop state-of-the-art telecommunication technology to meet the growing needs of the Indian telecommunication network. The actual evolution of the industry started after the Government separated the Department of Post and Telegraph in 1985 by setting up the Department of Posts and the Department of Telecommunications (DoT). The entire evolution of the telecom industry can be classified into three distinct phases.

Phase I- Pre-Liberalization Era (1980-89) Phase II- Post Liberalization Era (1990-99) Phase III- Post 2000

Until the late 90s the Government of India held a monopoly on all types of communications as a result of the Telegraph Act of 1885. As mentioned earlier in the chapter, until the industry was liberalized in the early nineties, it was a heavily government-controlled and small-sized market, Government policies have played a key role in shaping the structure and size of the Telecom industry in India. As a result, the Indian telecom market is one of the most liberalized market in the world with private participation in almost all of its segments. The New Telecom Policy (NTP-99) provided the much needed impetus to the growth of this industry and set the trend for liberalization in the industry.

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Figure 1

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2.2 Current Status of Telecom Sector in India


Globalization has made telecommunication an integral part of the infrastructure of the Indian economy. The telecom sector in India has developed as a result of progressive regulatory regime. According to the TRAI, the total gross revenue of the Indian telecom services industry was Rs 1,524 bn in FY09 up from Rs 1,291 bn in FY08 registering a growth of 18.03% over FY08 and its subscriber base grew by 43% over FY08 to touch 429.70 mn subscribers in FY09.

Figure 2

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The telecom sector in India experienced a rapid growth over the past decade on account of regulatory liberalization, structural reforms and competition, making telecom one of the major catalysts in Indias growth story. However, much of this growth can be attributed to the unprecedented growth in mobile telephony as the number of mobile subscribers grew at an astounding rate from 10 million in 2002 to 392 million in 2009. Besides, the growth in the service and IT sector also increased the prominence of the telecom industry in India. Telecom has emerged as a key infrastructure for economic and consumer growth because of its multiplier effect and the fact that it is beneficial to trade in other industries. The contribution of the sector to GDP has been increasing gradually (its contribution in GDP has more than doubled to 2.83% in FY07 from 1.0% in FY92). Telecom is one of the fastest-growing industries in India; on an average the industry added 8 million wireless subscribers every month in FY08. The government had set a target of 500 million telecom connections by 2010. However, according to the TRAI, the total subscriber base (wireless and wireline) in the industry crossed the 500-mn-mark and reached 509.03 mn by the end of September 2009, which took India to the second position in terms of wireless network in the world next only to China. Prior to liberalization, the telecom sector was monopolized by the public sector and recorded marginal growth; in fact, during 1948-1998, the incremental teledensity in the country was just 1.92%. However, the introduction of NTP99 accelerated the growth of the sector and the teledensity increased from 2.33 in 1999 to 36.98 in 2009; however, much of this growth was brought about by the NTP-99 policy changes such as migration from fixed license fee to revenue sharing regime and cost-oriented telecom tariffs. From 2003 onwards the government has taken certain initiatives such as unified access licensing regime, reduced access deficit, introduction of calling party pays (CPP) and revenue sharing regime in ADC that has provided further impetus to the sector. The Indian telecom industry is characterized with intense competition, and continuous price wars. Currently, there are around a dozen telecom service providers who operate in the wired and wireless segment. The government has been periodically implementing suitable fiscal and promotional policies to boost domestic demand and to create volumes for the industry. 23

The Indian telecom industry has immense growth potential as the teledensity in the country is just 36 as compared with 60 in the US, 102 in the UK and 58 in Canada. The wireless segment growth has played a dominant role in taking the teledensity to the current levels. In the next few years, the industry is poised to grow further, in fact, it has already entered a consolidation phase as foreign players are struggling to acquire a pie in this dynamic industry.

2.3 Role of Telecom in Indias Development


According to the UNCTAD, there is a direct correlation between the growth in mobile teledensity and the growth in GDP per capita in developing countries, which tend to have a high percentage of rural population. The share of the telecom services industry in the total GDP has been rising over the past few years (the telecom sector contribution in GDP went up from 2.52% in FY05 to 2.83% in FY07).

Table 1

Figure 3

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2.4 Employment
The Indian telecommunication industry employs over 400,000 direct employees and about 85% of these employees are from government-owned companies. The ratio of number of subscribers to employees, an indication of efficiency and profitability, is much higher for private companies than for government companies.

Table 2

2.5 Foreign Direct Investment (FDI)


Foreign direct investment has been one of the major contributors in the growth of the Indian economy, and therefore, the need for higher FDI is felt across sectors in the Indian economy. The telecom sector has played a crucial role in attracting FDI in India. The share of telecom sector in the total FDI inflows in India has gone up to 10% in FY09 as compared with just 3% in FY05. 25

The telecom sector requires huge investments for its expansion as it is capital-intensive and FDI plays a vital role in meeting the fund requirements for expansion of the telecom sector. Telecom accounts for almost 10% of the total FDI inflows in the country and has been the third-largest sector to attract FDI in India in the post-liberalization era

Figure 4

The Indian telecom industry has been an attractive avenue for foreign investors over the years. As per DIPP figures, the cumulative FDI inflow during August 1991 to June 2009 period, in the telecommunication sector amounted to US$ 113 bn. FDI calculation takes into account radio paging, cellular mobile and basic telephone services in the telecommunication sector.

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In the 2004-05 Budget, the government raised the FDI limit from 49% to 74% in the telecom services segment subject to retention of local management control. According to the new norms, 26% share out of the 74% should be held by an Indian company or an Indian citizen with Indian management. Further, 100% FDI is permitted in telecom manufacturing, category I infrastructure providers, ISPs without gateway, call centres and IT-enabled services. Further, direct or indirect FDI up to 74% is permitted subject to licensing and security requirements for ISPs with gateways, radio paging operators and category II infrastructure providers. The relaxation in FDI norms has attracted many foreign telecom majors to the sector. The presence of foreign players has not only encouraged faster infrastructure development and up gradation but also has opened up the domestic industry to foreign competition. Since 2004, there has been a large inflow of FDI in the sector. During 2004-05 and 2005-06, a period during which the FDI norms were relaxed, the FDI inflow grew by an astounding 300% to US$ 624 mn in 2005-06 from merely US$ 125 mn in 2004-05. The inflow of FDI has provided tremendous impetus to the sector in the past few years and the attractiveness of the sector has kept the FDI inflows growing steadily. During FY09 the FDI in the telecom sector at US$ 2,558 mn was 103% higher than that seen in FY08 at US$ 1,261 mn. Further, the FDI in the sector has already reached US$ 2010 mn for a six month period of FY10 (Apr-Sep 09) and is expected to surpass the total FDI for FY09. The governments liberalised FDI policies have resulted in several foreign companies entering into the Indian markets. The influx of foreign players in the Indian telecom industry has led to capacity creation, and better infrastructure, which in turn has bettered the network quality. The rise in FDI has also enabled technology transfer, market access and has improved organisational skills; going forward, FDI could be used for providing telecom services to rural areas, where teledensity is still very low. The change in FDI policy that has raised the FDI limit from 49% to 74% for the sector has made it more attractive for foreign players. In the long run the growth prospects of telecom

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players that have foreign partners will improve and other players will get new avenues to raise capital.

2.6 Growth of IT-ITeS and Financial Sector


India has entered the league of countries with the most-advanced telecommunication infrastructure after the industry was deregulated. Furthermore, deregulation has stimulated Indias economic growth through industry growth and through rise in investments. It is evident that a well-developed communication sector improves access to social networks, lowers transaction costs, increases economic opportunities, widens markets, and provides better access to information, healthcare and educational services. The growth in Indian telecom sector has been concomitant with overall growth in GDP, government revenue, employment et al. Besides, telecommunication has increased efficiency, reduced transaction costs, attracted investments and has created new opportunities for business and employment. The NTP-99 was particularly helpful for the ITS-BPO industry as it ended the government monopoly in international calling by introducing IP telephony. After the introduction of IP telephony, there was rapid growth in the number of data processing centers and inbound/outbound call centers, which ultimately led to the outsourcing revolution in India. The telecom sector has been instrumental in creating jobs for a vast pool of talented and knowledge professionals in the IT and ITS-BPO industry, which thrives on reliable telecommunication infrastructure. India has become an important outsourcing destination for the world and the boom in this sector also has transformed Indias economic dynamics. The evolution of telecom sector has brought about a revolutionary change in the way some businesses operate. Another beneficiary of the telecom revolution is the financial services industry, which has been on a growth trajectory. The progress and quality of the financial sector has been a key factor that has driven the pace and diversity of the real economy. India has an extensive and 28

well-developed financial sector with wide and sophisticated banking network. Banking in India has become service-oriented, and has matured greatly from the days of walk-in customers to the present situation when banks have migrated to a 24-hour banking platform to attract customers; however, this disintermediation in the business has led banks to be extremely prudent in terms of their internal operations and has led them to adopt newer products and delivery channels. Further, with introduction of internet & mobile banking the long queues at the banks are slowly becoming a thing of the past. Both the financial and the IT-ITeS segments rely on good domestic as well as international network connectivity; therefore, there is a need for a sound telecommunication network.

2.7 Factors Facilitating Growth of the Sector


The phenomenal growth in the Indian telecom industry was brought about by the wireless revolution that began in the nineties. Besides this, the following factors also aided the growth of the industry.

1. Liberalization
The relaxation of telecom regulations has played a major role in the development of the Indian telecom industry. The liberalization policies of 1991 and the consequent influx of private players have led the industry on a high growth trajectory and have increased the level of competition. Post-liberalization, the telecom industry has received more investments and has implemented higher technology.

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2. Increasing Affordability of Handsets


The phenomenal growth in the Indian telecom industry was predominantly aided by the meteoric rise in wireless subscribers, which encouraged mobile handset manufacturers to enter the market and to cater to the growing demand. Further, the manufacturers introduced lower-priced handsets with add-on facilities to cater to the increasing number of subscribers from different strata of the society. Now even entry-level handsets come with features like coloured display and FM radio. Thus, the falling handset prices and the add-on features have triggered growth of the Indian telecom industry. 3. Prepaid Cards Bring in More Subscribers In the late nineties, India was introduced to prepaid cards, which was yet another milestone for the wireless sector. Prepaid cards lured more subscribers into the industry besides lowering the credit risk of service providers due to its upfront payment concept. Prepaid cards were quite a phenomenon among first-time users who wanted to control their bills and students who had limited resources but greater need to be connected. Pre-paid cards greatly helped the cellular market to grow rapidly and cater to the untapped market. Further, the introduction of innovative schemes like recharge coupons of smaller denominations and life time incoming free cards has led to an exponential growth in the subscriber base. 4. Introduction of Calling Party Pays (CPP) The CPP regime was introduced in India in 2003 and under this regime, the calling party who initiated the call was to bear the entire cost of the call. This regime came to be applicable for mobile to mobile calls as well as fixed line to mobile calls. So far India had followed the Receiving Party Pays (RPP) system where the subscriber used to pay for incoming calls from both mobile as well as fixed line networks. Shifting to the CPP system has greatly fuelled the subscriber growth in the sector. 30

5. Changing Demographic Profile The changing demographic profile of India has also played an important role in subscriber growth. The changed profile is characterized by a large young population, a burgeoning middle class with growing disposable income, urbanization, increasing literacy levels and higher adaptability to technology. These new features have multiplied the need to be connected always and to own a wireless phone and therefore, in present times mobiles are perceived as a utility rather than a luxury. 6. Increased Competition & Declining Tariffs Liberalization of the telecom industry has fuelled intense competition, especially in the cellular segment. The ever-increasing competition has led to high growth of subscribers and has put pressure on tariffs, which have seen a sharp drop over the years. When the cellular phones were introduced, call rates were at a peak of Rs 16 per minute and there were charges for incoming calls too. Today, however, incoming calls are no longer charged and outgoing calls are charged at less than a rupee per minute. Thus, the tariff war has come a long way indeed. Increased competition and the subsequent tariff war has acted as a major catalyst for attracting more subscribers. Apart from these major growth drivers, an improved network coverage, entry of CDMA players, growth of value-added services (VAS), advancement in technology, and growing data services have also driven the growth of the industry. 7. Outlook: The telecommunication services have been recognized as an important tool for socioeconomic development of a nation. It is one of the prime support services needed for rapid growth and modernisation of various sectors of the economy. India with a user base of 120 million is the world's third largest internet market and is poised to have up to 370 million users in 2015.

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2.8 Key Statistics


India is expected to have 130.6 million mobile internet users by March 2014, according to a joint study by the Internet and Mobile Association of India (IAMAI) and Indian Market Research Bureau (IMRB). The number of users accessing internet through mobile devices was 87.1 million in December 2012. With the number of internet connections and the usage of computing devices on the rise, India's internet industry can contribute up to US$ 100 billion to India's gross domestic product (GDP) and generate about 22 million jobs by 2015, as per a report titled 'Online and Upcoming: The internet's Impact on India', released by McKinsey and Co. Internet services and devices industry has potential to increase its contribution up to 3.3 per cent to the country's GDP by 2015. In addition, India can achieve broad-based internet impact by aiming for digital inclusion of nearly 40 per cent of its population to reach a user base of 500 million by 2015, rather than the likely target of 330-370 million, the report highlighted. The telecommunications industry attracted foreign direct investments (FDI) worth US$ 12,623 million between April 2000 to December 2012, an increase of 7 per cent to the total FDI inflows in terms of US$, according to the latest data published by Department of Industrial Policy and Promotion (DIPP).

2.9 Market Dynamics


The Indian mobile phone market is highly competitive with more than 150 device manufacturers trying to woo the consumers with their offerings. Most of these producers focus their efforts on the low-cost feature phone market, which constitutes over 91 per cent of 32

overall mobile phone sales, offering a huge scope for growth. Manufacturers like ZTE, Micromax, Karbonn Mobile, Huawei stood at sixth, seventh and twelfth positions respectively, in the Indian Smartphone market in the first half of 2012. They are constantly enhancing their Smartphone portfolio to compete with big global manufacturers like Samsung and Nokia, which held the first and second position respectively. "India will add more Internet users than any country in the world over the next three years, as average penetration rises from 10 per cent to 28 per cent," as per McKinsey and Co report. Besides, with increased Internet penetration, 22 million jobs would be created by 2015.

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Aircel is Indias fifth largest and fastest growing GSM mobile service provider with a subscriber base of 65.1 million. Aircel is a pan India operator with a presence across 23 circles. The company offers voice & data services ranging from postpaid and prepaid plans, 2G and 3G services, Broadband Wireless Access (BWA), Long Term Evolution (LTE) to Value-Added-Services (VAS). In addition to providing premium internet access solutions to facilitate data intensive live streaming applications, the company has also paved the way to be amongst the first to offer 3G and 4G LTE services to customers. Aircel successfully bid for 3G licenses/ spectrum in 13 states, (Andhra Pradesh, Karnataka, Tamil Nadu, Kolkata, Kerala, Punjab, Uttar Pradesh (East), West Bengal, Jammu & Kashmir, Bihar, Orissa, Assam and North East), with BWA licenses/ spectrum also obtained in 8 of these states. Aircels 3G rollout has been the fastest roll out ever in the Indian Telecom Space. Aircel Is optimistic about the data bundling in its key markets. Tamil Nadu, being the strongest circle with spectrum in 900MHz, 3G and BWA and in incumbent circles where the company is strong in voice, will now start adding data bundles. In 2006, Aircel was acquired by Malaysias biggest integrated communications service provider Maxis (Maxis Communication Berhard) and is a joint venture with Sindya Securities & Investments Pvt Ltd - Maxis holds 74% equity in the company. Aircel has positioned itself as a data led telecom player with a focus on young Indians and has addressed the multi-functionality of a mobile phone in many innovative ways which are Industry firsts, be it the Aircel Pocket Internet, the first social networking mobile INQ on Aircel, Aircel Apollo Mobile Health Care, Blyk on Aircel, an enriching engagement for the Youth and very recently the first telecom player to introduce Facebook Voice Updates on Aircel.

The vision of preparing for the future has led to Aircel being recognized as the leading player in providing overall mobile satisfaction as well as the leading regional mobile operator by institutions such as Voice and Data, IDC and tele.net . 35

Aircel was also adjudged the Best Employers by Aon Hewitt in 2011. The companys continuous focus is on acquiring, nurturing and retaining highly talented people by providing them with an inclusive and dynamic working environment. It has also set up the Aircel Academy, a 25,000 square foot facility in Gurgaon (HQ) to provide learning and specialized development for employees.

Being a caring and responsible corporate, Aircel is involved in initiatives like Save Our Tigers, an effort to save and grow the dwindling population of tigers in India. The Save Our Tigers campaign made India wake up to the alarming fact that there were only 1411 tigers left in India through its 360 degree awareness program. Another initiative by Aircel is the a+, initiative which aims to bridge the digital divide. Through Aircel a+; Aircel provides underprivileged youth from rural areas access to computers and internet for educational and developmental purposes.

About Maxis Communications Berhad


Maxis Communications Berhad, which started operations in the year 1995, is Malaysia's biggest integrated communications service provider Maxis' vision is to bring the future to our customers lives and business, in a manner that is simple, personalized and enriching, by efficiently and creatively harnessing leading-edge technology and delivering a brand of service experience that is reliable and enchanting. Aircel today has a presence that spreads across almost the entire length and breadth of India. Operations commenced in south India, where Aircel established its leadership and from there extended itself to the pan India operator. Aircel today is operating in 23 telecomm circles and is all geared for dynamic expansion plan in the near future. Andhra Pradesh

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3.1 History of Aircel


Aircel started as a regional player in Tamil Nadu in 1999.Soon, it became the leading operator in Tamil Nadu. At one time, Aircel was the fastest growing operator in India. Because of this, it attracted foreign investments and Malaysian operator Maxis Communications bought a 74 percent stake in the company in 2005 from its Indian owner Chinnakannan Sivasankaran. In 2010, the company bought 3G and wireless broadband (BWA) spectrum in 13 and 8 circles respectively in the auction. It paid US$ 1.44 billion ( 79.1 billion) for the 3G spectrum and US$ 0.76 billion ( 49.76 billion) for BWA. Of this, the company raised $0.88 billion ( 48.3 billion) from Deutsche Bank, Standard Chartered Bank, HSBC and Barclays. It also took a $0.44 billion ( 24.2 billion) one-year bridge loan from HSBC, Punjab National Bank and Axis Bank. The company, as of November 2012, has around 1 million 3G customers. It is yet to launch its LTE network, although it is conducting trials at its center in Hyderabad. Aircel expects to launch it in the first quarter of 2013.

3.2 Goals and Values


Customers: Our customers are our most valued assets. We will strive to exceed their expectations at all time by providing them with superior services that embody value, innovation, quality and care. People: Our people are our greatest resources. we will attract, train and retain the best. we will challenge them to develop their full potential in the context of our company goals.

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Integrity: We will maintain and strive for the highest levels of personal and professional integrity and honesty in all ours dealings. We will keep our promises. Respect: We will treat with respect & dignity all people we deal with. Excellence: We are committed to excellence in all what we do. There will be no place for mediocrity. Work: We will promote a work environment that embraces creativity, promotes empowerment, and encourages team work, innovation, prudent risk taking, honest and open communication and respectful iconoclasm. Quality: The hallmark of our internal and external outputs and processes will be quality. this will pervade every aspect of our functioning.

3.3 Mission
We are conditionally committed to exceeding our customers expectations. We will provide network and services that are innovative and reliable, allowing our customers any time anywhere communications. We will attract, develop and retain an exceptional team of people. We are committed to enhancing the quality of real life in the community in which we operate. We will meet the financial expectation of our shareholders.

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3.5 Geographical Distribution of Aircel

39

1. Assam 2. Bihar 3. Chennai 4. Delhi 5. Gujarat 6. Haryana 7. Himachal Pradesh 8. Jammu Kashmir 9. Karnataka 10. Kerala 11. Kolkata 12. Madhya Pradesh 13. Maharashtra 14. Mumbai 15. North East 16. Orissa 17. Punjab 18. Rajasthan 19. Tamil Nadu 20. UP East 21. UP West 22. West Bengal The Aircel Group is a result of alliance between Maxis Communications Berhad of Malaysia (74% equity) and Sindya Securities & Investments Private Limited (26% equity).

The Aircel Group, formed in 1994, offers affordable and outstanding mobile services to a vast subscriber base in India. Aircel has a vision of delighting its customers by giving them the 40

respect they deserve. Our goal is to provide our customers with exemplary service and persistently look for new ways to surpass their expectations.

Aircel commenced operations in 1999. In our first decade of operations, we concentrated on building our foundations in the southern part of the country, and soon emerged as the regional market leaders. We worked hard and achieved that success by remaining focused on growth opportunities. Soon after our company began with its expansion in 2005 and has now set its sight on becoming a pan India operator. Our project pipeline is robust, allowing for sustainable long-term growth.

In addition to our leadership position in Tamil Nadu, Aircel met with extraordinary success in the Eastern frontier circles. We pride ourselves on customer satisfaction and managed to emerge as the market leaders in Assam and North Eastern states within 18 months of operations. During this period, our company gained a strong foothold in 10 circles, to provide better access to our customers. The company is present in all 23 telecom circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh, Karnataka, Delhi, UP(West), UP(East), Maharashtra & Goa , Mumbai, Haryana , Madhya Pradesh, Punjab, Gujarat and Rajasthan.

Aircel provides 3G service in Andhra Pradesh, Assam, Bihar & Jharkhand, Chennai, Jammu & Kashmir, Karnataka, Kerala, Kolkata, North East, Orissa, Punjab, Tamil Nadu, UP East and West Bengal.

Aircel offers its customers, services and products that are easy to understand and use. All offerings are stimulating and at the same time extremely unique as Aircel continues to reinvent itself constantly to deliver the best and most up-to-date services. The brand instils a felling of pride, confidence and reliance among all stakeholders by anticipating their desires and fulfilling the same efficiently. 41

With our foundations deeply set on our brand vales of simplicity, creativity, trust and excitement, we will continue to deliver superior services to our customers and will do our best to live up to their high expectations.

3.6 Products and Services Offered


Aircel mainly deal in its core business of cellular connection. it provides variety of products such as.

-Postpaid mobile connections -Prepaid mobile connections -Recharge vouchers -Value added services -Broadband connections

with the help of these products company operate its business in the market & company launches other products but they can be depend on either the competition or customer preferences.

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Products and services offered by Aircel in Jammu and Kashmir


Top up Data/2G Rs. 44 Rs129(30day) TT 50 Unlimited Data(2G)+ 6000 SMS* Rs. 69 Rs135(30day) TT 69 Talk time* of Rs.150+150MB 2G Data Rs. 75 Rs 11 (1 day) TT 75 Talk time* of Rs 11+ 1MB Data Rs. 80 Rs125(15Day) TT 80 Talk time* of Rs 135+1MB Data Rs. 84 Rs 25(3 Days) TT Talk time* of Rs 100 135+ 1MB data Rs. 119 TT 119 Rs. 220 TT 220 Rs 65 (7Days) Talk time* of Rs 70 in DA account & 1MB Data Rs 75 (90Days) Talk time of Rs 75+ 1 MB Data 3G Local Rs 8(2Days) Rs.59(7Days) 60MB; upto 3.6 Mbps 250 local onnet minnutes Rs17(3 Days) Rs.97(15Days) 100MB; 3.6 Mbps 220 local/STD min STd Rs.97(15Das) 220local/STD min. Rs.122(15Days) 15000 local/STD min. Rs.179(15Days) 500 local/STD min Rs.352(30Days) 60000 local/STD seconds Rs.501(28Days) 100000 Local/STD seconds. Rs. 5 (1 Day) All local STD and SMS at 50 paisa/min. Rs.12 (28Days) All STD calls @ 45p/min.

Rs37(10Days) 200 MB; 3.6 Mbps Rs67(15Days) 250MB 3G+500MB 2G; 3.6 Mbps Rs128(28Days) 500MB; 3.6 Mbps

Rs.122(15Days) 15000 local/STD min Rs.179(15Days) 500local/STD min Rs.352(30Days) 60000local/STD min

Rs198(30Days) 1GB; 3.6 Mbps

Rs.501(28Days) 100,000 local/STD days Rs.148(90Days) Local A2A @10p/min, A2L@1.65p/sed. All Std @ 2p/sec. Rs. 5(1Day) All local, STD SMS at 50p/min

Rs399(30Days) 2GB; 3.6Mbps

Rs.250 Rs119(90Days) TT 250 Talk time of 119+ 1 MB Data

Rs697(30Days) 5GB; upto 7.2 Mbps

Rs. 500 TT 550

Rs997(30Days) 10GB;upto 7.2Mbps

Rs. 21 (2Days) Local 121 A2A min.

Rs. 38(28Days) All STD calls at Re. 1.20/3min and others @50p/min. Rs.349(28Days) Free local A2A till 250000sec,therea 43

fter @ 10p/min Rs.100 0 TT 1150 Rs. 10 TT 9 Rs. 33 (28Days) Local offnet 1.65p/2sec. Rs.39(30Days) Night calling on local Aircel@Re. 1 for 30 min. Rs.105(30Day) Free A2A calls 11p.m to 6a.m. Rs.3 (2Days) Local A2A calls @ 0.20p/min for 1 Day. Rs.159(30Day) Unlimited Data(3G+2G)+6000 SMS. Rs.3 (2Days) Local A2A calls @ 0.20p/min for 1 Day.

Rs. 20 TT 18 Rs. 25 TT 22 Rs. 30 TT 27

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3.7 Strategic and Marketing Analysis


AIRCEL PRESENT AND FUTURE STRATEGIES

ANSOFF MATRIX

AIRCEL LAUNCH
Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. Aircel began its outward expansion in 2005 and met with unprecedented success in the Eastern frontier circles. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of operations. During this period, the company gained a

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foothold in 9 circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh and West Bengal. To gain grounds in telecom market it followed low pricing market penetration strategy. It was the first company of india to make incoming calls free. It kept the cost of sim cards low and waived of the monthly rental. These steps ensured that it became market leader in these markets in no time and achieve economies of scale. By keeping its airtime charges low it was able to tap the bottom of pyramid.Today it boasts of having 800minutes of usage per user and huge net profits year after year.

AIRCEL EXPANSION TO NEW MARKETS


The Company has gaining momentum in the telecom space in India post the allocation of additional spectrum by the Department of Telecom, Govt. of India for 13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and UP (East). Today it is present in 18 circles out of 23 circles of India and has licenses for the remaining 5 circle. By the end of 2010 aircel plans to become a pan India telecom player.

AIRCEL NEW PRODUCTS DEVELOPMENT


Aircel has positioned itself on the future of telephony - data play. Its services are loaded with value-added applications, as would be apparent from its campaign. It wants to offer services that the youth craves for. It has moved beyond voice services and explore the VAS space.It is working a lot with content aggregators such as Yahoo and Makemytrip. It is looking to rope in more partners to help us position itself better in the VAS space. Aircel, wants to offer a platform for innovation. So is encouraging new and out-of-the-box ideas. New technology like 3G would further give an impetus to its brand positioning.

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AIRCEL DIVERSIFICATION
AIRCEL sees a lot of potential remaining in India and is focusing on its Indian operation. It has no intention to start operation in overseas markets.

AIRCEL LIFECYCLE

1. INTRODUCTION STAGE Aircel met with unprecedented success in the Southern and Eastern circles. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of operations. During this period, the company gained a foothold in 9 circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh and West Bengal.

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2. GROWTH STAGE The Company has currently gained a momentum in the space of telecom in India post the allocation of additional spectrum by the Department of Telecom, Govt. of India for 13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and UP (East). Aircel has won many awards and recognitions. Voice and Data gave Aircel the highest rating for overall customer satisfaction and network quality in 2006. Aircel emerged as the top midsize utility company in Businessworlds List of Best Mid-Size Companies in 2007. Additionally,Tele.net recognised Aircel as the best regional operator in 2008. 3. MATURITY STAGE Telecom market in urban India is reaching maturity stage. Teledensity in cities is close to 100 percentage. Tough competition is putting a dent on the balance sheet of various telecom companies. Call rates in cities have already crashed. Pay per second plan intiated by Docomo was soon adopted by everyone and revenues of telecom companies further reduced. 4. DECLINE / ALTERNATIVE GROWTH STATEGY Telecom Industry is reaching out for new options to maintain its growth trajectory. Some of the many option with telecom industry are :-Rural Markets -Telecom companies are reaching to rural India to maintain their growth rate. Teledensity in Indian villages is close to 50% and has high growth potential. With call rates dropping cell phone will soon will be a part of every Indian household.3G and BWA spectrum - Aircel has won 3G spectrum across 13 circles and BWA spectrum in 8 circles in recently spectrum auction .Aircel holds one of the highest amount of next generation spectrum amongst all telecom operators in India. It wants to ramp up operations in india in a big way. Broadband will be the new driver for growth of Indian Telecom Industry.Operations Restructuring Aircel has sold its towers to GTL infrastructure. 48

It plans to focus on its telecom services while using towers from GTL . Its IT infrastructure is outsourced to Wipro. They are also helping us transform our IT backhaul to the new generation technology. Our network is of the latest technology and we have installed state-ofthe-art EDGE technology. We are ready for the 3G as our networks can easily be upgraded as per the requirements of new generation technology.

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4.1 METHODOLOGY
Marketing research is the systematic and objective identification, collection analysis, dissemination and use of information for the purpose of improving decision making related to the identification and solution of problem. During the course of conducting the study the information were gathered mainly through the primary source. Conducting field survey by taking to the respondents (students) who were using Aircel Services on the methodology used in the survey was personal observation and interview with respondents with the help of questionnaire.

4.2 RESEARCH DESIGN


Research design is a framework of blueprint for conducting the marketing research project. It deals the procedure necessary for obtaining the information needed to structure and / or solve the marketing research problem. The two types of research we conducted are:-

1. Exploratory 2. Conclusive
The objective of our exploratory research is to provide insight, into and understanding of the problem conforming us. The objective of our conclusive research is to test specific hypothesis and examine specific relationship.

4.3 SOURCES OF DATA:Data requires for the research work can be making available from different sources, they could be classified in two groups:-

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a) Primary source: - Data acquired through a structured questionnaire among the students
of Kashmir University, Islamic University of Science and Technology, Islamia College of Science and Commerce, NIT Hazrtabal, SSM College of Engineering and Technology and South Campus, University of Kashmir.

b) Secondary data: -Includes already collected data whether published or


unpublished, such as officially data base, magazines, journals, Aircel website and Projects done on Aircel by students.

4.4 SAMPLING
The sample of the population was chosen with the aim of getting closest to the real population. The sample thus researched upon consisted of Selected Number of students from Professional, Graduate and Undergraduate Students across colleges and universities.

4.5 DATA COLLECTION TOOLS


The collection of data is through a (A). Questionnaire (B). Observation

Questionnaire:It is a piece of paper with a set of questions related to the purpose Research, which is presented to the respondent. The questionnaire used in my survey had close-end questions.

Observation Methods:When we look at the phenomenon with some objective it is called Observation. It is the important technique for data collection. This Method was also accompanying survey, to know the exact position or Responses of the respondents. 52

4.6 LIMITATION OF THE STUDY


The scope of the study has been kept restricted to the students of higher education only. Some question regarding the other company depends on the mood of the respondent and at the time during which they were interviewed. The biased view of the respondents. Some of the respondents were not aware about the facts. Though every possible attempt was made to ensure correct results but there may be changed of sampling error. There is a chance of human error. The result is true for the given time period and it may vary with time.

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F-TEST (Annova) OF THE DATA


ANOVA Sum of Squares When Aircel promises to do Between Groups 11.652 207.841 219.493 7.179 209.495 216.673 9.298 196.542 205.840 3.712 230.481 234.193 4.843 220.150 224.993 4.062 205.411 209.473 15.864 171.076 186.940 21.079 182.921 204.000 6.218 174.876 df 5 144 149 5 144 149 5 144 149 5 144 149 5 144 149 5 144 149 5 144 149 5 144 149 5 144 1.244 1.214 1.024 .406 4.216 1.270 3.319 .007 3.173 1.188 2.671 .024 .812 1.426 .570 .723 .969 1.529 .634 .674 .742 1.601 .464 .803 1.860 1.365 1.362 .242 1.436 1.455 .987 .428 Mean Square 2.330 1.443 F 1.615 Sig. .160

something by a certain time,it Within Groups does so. When you have a problem , Aircel shows a sincere interest in solving it. Aircel performs the services right the first time. Aircel keep the customers informed about when the services will be performed. Employees in Aircel gives you prompt services. Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total

Employees in Aircel are always willing to help you.

The behaviour of employees instils confidence in you. Employees in Aircel are consistently courteous to you.

Employees in Aircel have the Between Groups knowledge to answer your Within Groups

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questions. Aircel has employees who give you personal attention. Employees of Aircel understand your specific needs. Aircel has operating hours that are convenient to its customers.

Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups

181.093 4.897 226.576 231.473 8.756 203.438 212.193 9.964 183.536 193.500 11.187 236.287 247.473 7.247 222.086 229.333 15.565 247.768 263.333

149 5 144 149 5 144 149 5 144 149 5 144 149 5 144 149 5 144 149 3.113 1.721 1.809 .115 1.449 1.542 .940 .457 2.237 1.641 1.364 .242 1.993 1.275 1.564 .174 1.751 1.413 1.240 .294 .979 1.573 .623 .683

Aircel has good network.

Within Groups Total

Recharge coupons are easily available.

Between Groups Within Groups Total Between Groups

Aircel has sufficient outlets.

Within Groups Total

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Question 1
When Aircel promises to do something by a certain time, it does so.

Frequency

Percent

Valid Percent 20.0 18.0 26.7 30.0 5.3 100.0

Cumulative Percent 20.0 38.0 64.7 94.7 100.0

Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total

30 27 40 45 8 150

20.0 18.0 26.7 30.0 5.3 100.0

F-TEST : 1.615

Strongly agree 5% Agree 30%

Q1
Strongly Disagree 20%

Disagree 18%

Neither agree nor disagree 27%

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Interpretation:
The results of this research question revealed that 38% of all the respondents responded that they didnt agree that AIRCEL provides timely services to its subscribers. Only 5% of all the respondents strongly agreed that AIRCEL provides timely service. While as 40% agreed that AIRCEL provided its services in stipulated time. The basis for asking this question was to ask the subscribers was to find out : 1. Does AIRCEL activates its SIM Cards in 24 hours as promised: The majority answered in negative. 2. Does AIRCEL customer care services respond timely when you have a problem in recharge.: The majority answered in negative. 3. Does AIRCEL sends you the messages and Data settings immediately when you call for the service : The majority answered in affirmative. The average value for this question indicated that AIRCEL for certain services like DATA and VAS provided timely services while as for others do not provide timely services. Upon taking the F-Test, we got a value of 1.615 which suggests that there is a great significance of timely services upon customer satisfaction. Moreover, AIRCEL has scored fairly in this dimension.

Suggestions :
1. Empower customer care executives to take decisions based on the complaints of the subscribers.

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Question 2
When you have a problem, Aircel shows a sincere interest in solving it.
Frequenc y Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total 24 33 26 60 7 150 Percent Valid Percent 16.0 22.0 17.3 40.0 4.7 100.0 Cumulative Percent 16.0 38.0 55.3 95.3 100.0

16.0 22.0 17.3 40.0 4.7 100.0

F-TEST : 0.987

Q2

Strongly agree 5% Strongly Disagree 16%

Agree 40%

Disagree 22%

Neither agree nor disagree 17%

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Interpretation
The results of this research question revealed that 38% of all the respondents responded that they didnt agree that AIRCEL shows sincere interest in solving their problems. Only 5% of all the respondents strongly agreed that AIRCEL provides timely service. While as 40% agreed that AIRCEL shows sincere interest in solving their problems. The basis for asking this question was to ask the subscribers was to find out : 1. Do you think understand that you as a subscriber are important: The majority answered in affirmative. 2. Does AIRCEL improved on getting your feedback and responding to your queries: The majority answered in negative. 3. How many calls on an average did it take to get your problems addressed: majority answered atleast 2. The average value for this question indicated that AIRCEL as a company offers you customized plans but the response on grievance redressal was average. Upon taking the F-Test, we got a value of 0.987 which suggests that there is a significance of grievance redressal upon customer satisfaction. Moreover, AIRCEL has scored average in this dimension.

Suggestions:
1. Aircel should not force customers to call back again but instead call from their side on the progress of their grievance redressal.

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Question 3
Aircel performs the services right the first time.
Frequenc y Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total 23 35 38 45 9 150 Percent 15.3 23.3 25.3 30.0 6.0 100.0 Valid Percent 15.3 23.3 25.3 30.0 6.0 100.0 Cumulative Percent 15.3 38.7 64.0 94.0 100.0

F-TEST :1.362

Q3
Strongly agree 6% Strongly Disagree 16%

Agree 30% Disagree 23% Neither agree nor disagree 25%

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Interpretation
The results of this research question revealed that 39% of all the respondents responded that they didnt agree that AIRCEL performs the services right the first time. Only 6% of all the respondents strongly agreed that AIRCEL provides timely service. While as 30% agreed that AIRCEL shows sincere interest in solving their problems. The basis for asking this question was to ask the subscribers was to find out: 1. Does Aircel fulfill their commitments once made? : They answer wasnt significant because half of the respondent answered in negative while other half answered in affirmative. 2. Does AIRCEL refund the balance deducted by self renewals add-on services : The answer was in affirmative.. The average value for this question indicated that AIRCEL as a company performs the services right the first time but the response was average. Upon taking the F-Test, we got a value of 1.362 which suggests that there is a significance of performance of service the first time upon customer satisfaction. Moreover, AIRCEL has scored fairly in this dimension.

Suggestions:
2. Aircel should make sure that customers grievances should be made a record of and addressed the first time.

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Question 4
Aircel keep the customers informed about when the services will be performed

Frequency Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total F-TEST : 0.464 15 24 26 55 30 150

Percent 10.0 16.0 17.3 36.7 20.0 100.0

Valid Percent 10.0 16.0 17.3 36.7 20.0 100.0

Cumulative Percent 10.0 26.0 43.3 80.0 100.0

Q4
Strongly agree 20%

Strongly Disagree 10% Disagree 16%

Agree 37% Neither agree nor disagree 17%

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Interpretation
The results of this research question revealed that26% of all the respondents responded that they didnt agree that AIRCEL keep the customers informed about when the services will be performed. Only 20% of all the respondents strongly agreed that AIRCEL keep the customers informed about when the services will be performed. While as 37% agreed that AIRCEL keep the customers informed about when the services will be performed. The basis for asking this question was to ask the subscribers was to find out : 1. Aircel keeps its promises about in what time a particular service would be provided to the subscriber: Most of the respondents agreed that Aircel performed the services within a stipulated time.

Upon taking the F-Test, we got a value of 0.464 which suggests that there is no significance of timely performance of services upon customer satisfaction in telecom sector in J&K. Moreover, AIRCEL has scored highly in this dimension.

Suggestions:
Aircel should not make false promises about the time duration but should strictly follow the time duration it had promised to the customers. Moreover, Aircel should also reduce the time limit of performances of the services.

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Question 5
Employees in Aircel gives you prompt services.
Frequency Percent Valid Percent 16.0 17.3 26.0 31.3 9.3 100.0 Cumulative Percent 16.0 33.3 59.3 90.7 100.0

Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total

24 26 39 47 14 150

16.0 17.3 26.0 31.3 9.3 100.0

F-TEST : 0.634
Strongly agree 10%

Q5
Strongly Disagree 16%

Agree 31% Neither agree nor disagree 26%

Disagree 17%

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Interpretation
The results of this research question revealed that 33% of all the respondents responded that they didnt agree that AIRCEL gives prompt services. Only 10% of all the respondents strongly agreed that AIRCEL provides prompt service. While as 31% agreed that AIRCEL provides prompt services. The basis for asking this question was to ask the subscribers was to find out : 1. Does Aircel always activates services quickly: The answer was in affirmative. 2. Does Aircel activates the SIM within 24 hours: The answer was in affirmative as well. Upon taking the F-Test, we got a value of 0.634 which suggests that there is less significance of this question upon customer satisfaction. Moreover, AIRCEL has scored average in this dimension.

Suggestions:
3. Aircel should keep the availability of SIMS and recharge so that customers always get prompt services.

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Question 6
Employees in Aircel are always willing to help you.
Frequency Percent Valid Percent 11.3 20.0 20.0 39.3 9.3 100.0 Cumulative Percent 11.3 31.3 51.3 90.7 100.0

Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total

17 30 30 59 14 150

11.3 20.0 20.0 39.3 9.3 100.0

F-TEST : 0.570

Q6

Strongly agree 9% Strongly Disagree 11%

Disagree 20% Agree 40%

Neither agree nor disagree 20%

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Interpretation
The results of this research question revealed that 31% of all the respondents responded that they didnt agree that AIRCEL are always willing to help you. Only 9% of all the respondents strongly agreed that AIRCEL are always willing to help you. While as 40% agreed that AIRCEL are always willing to help you. The basis for asking this question was to ask the subscribers was to find out: 1. Do you think customer care responds well : The answer was in affirmative. 2. Do you think Aircel franchisees always responds to your lost SIMs : The answer was in average. Upon taking the F-Test, we got a value of 0.570 which suggests that there is less significance in AIRCEL about the need to respond to the customer problems while they are going fairly on this dimension.

Suggestions: 1. They should go out of their way in making sure that subscriber gets the best possible
service.

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Question 7
The behaviour of employees instills confidence in you.
Frequency Percent Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total 18 26 53 41 12 150 12.0 17.3 35.3 27.3 8.0 100.0 Valid Cumulative Percent Percent 12.0 12.0 17.3 29.3 35.3 27.3 8.0 100.0 64.7 92.0 100.0

F-TEST: 2.671

Q7
Strongly agree 8% Strongly Disagree 12%

Agree 28%

Disagree 16%

Neither agree nor disagree 36%

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Interpretation
The results of this research question revealed that 28% of all the respondents responded that they didnt agree that the behavior of employees instills confidence in you. Only 8% of all the respondents strongly agreed that the behavior of employees instills confidence in you. While as 28% agreed that AIRCEL that the behavior of employees instills confidence in you. The basis for asking this question was to ask the subscribers was to find out : 1. Do you think Aircel customer care respond in a manner so that you become sure that your problem will be addressed and solved genuinely and within time : The answer was in negative. Upon taking the F-Test, we got a value of 2.671 which suggests that there is less significance of giving assurance upon customer satisfaction. Moreover, AIRCEL has negative average in this dimension.

Suggestions:
4. Customer care executives should be trained to assure the subscriber.

70

Question 8
Employees in Aircel are consistently courteous to you.
Frequency Percent Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total 14 25 51 37 23 150 9.3 16.7 34.0 24.7 15.3 100.0 Valid Percent 9.3 16.7 34.0 24.7 15.3 100.0 Cumulative Percent 9.3 26.0 60.0 84.7 100.0

F-TEST : 3.319

Q8
Strongly agree 15%

Strongly Disagree 9%

Disagree 17% Agree 25% Neither agree nor disagree 34%

71

Interpretation
The results of this research question revealed that 26% of all the respondents responded that employees in Aircel are consistently courteous to you. They didnt agree that AIRCEL employees in Aircel are consistently courteous to you. Only 15% of all the respondents strongly agreed that AIRCEL employees are courteous to you. While as 25% agreed that AIRCEL employees are consistently courteous to you. The basis for asking this question was to ask the subscribers was to find out : 1. Does the customer care talk to you politely : The maximum answered in affirmative. 2. Does AIRCEL employees at AIRCEL offices and franchises give you enough time : Maximum answered in negative. . Upon taking the F-Test, we got a value of 3.319 . Moreover, AIRCEL has scored average in this dimension.

Suggestions:
5. Aircel should train its front desk customer care executives in franchisees and offices to behave gently with the subscribers.

72

Question 9
Employees in Aircel have the knowledge to answer your questions.
Frequency Percent Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total 15 17 40 65 13 150 10.0 11.3 26.7 43.3 8.7 100.0 Valid Percent 10.0 11.3 26.7 43.3 8.7 100.0 Cumulative Percent 10.0 21.3 48.0 91.3 100.0

F-TEST : 1.024

Q9
Strongly agree 9% Strongly Disagree 10% Disagree 11%

Agree 43%

Neither agree nor disagree 27%

73

Interpretation
The results of this research question revealed that 21% of all the respondents responded that they didnt agree that AIRCEL Employees in Aircel have the knowledge to answer your questions. Only 9% of all the respondents strongly agreed that Employees in Aircel have the knowledge to answer your questions. While as 43% agreed that Employees in Aircel have the knowledge to answer your questions. The basis for asking this question was to ask the subscribers was to find out: 1. Does the customer care executives have information about all the schemes and plans : The answer was in affirmative. Upon taking the F-Test, we got a value of 1.024 which suggests that there is a significance of having required information upon customer satisfaction. Moreover, AIRCEL has scored highly in this dimension.

Suggestions:
No suggestions.

74

Question 10
Aircel has employees who give you personal attention.
Frequency Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total 22 19 44 44 21 150 Percent 14.7 12.7 29.3 29.3 14.0 100.0 Valid Percent 14.7 12.7 29.3 29.3 14.0 100.0 Cumulative Percent 14.7 27.3 56.7 86.0 100.0

F-TEST : 0.623

Strongly agree 13%

Q10
Strongly Disagree 15% Disagree 13%

Agree 30%

Neither agree nor disagree 29%

75

Interpretation
The results of this research question revealed that 28% of all the respondents responded that they didnt agree that AIRCEL employees give you personal attention. Only 13% of all the respondents strongly agreed that AIRCEL employees give you personal attention. While as 30% agreed that AIRCEL employees give you personal attention. The basis for asking this question was to ask the subscribers was to find out : 1. Customer care executives give you personal attention . : The answer was in affirmative.

Upon taking the F-Test, we got a value of 0.632 .

Suggestions:
Aircel goes on fairly in this dimension.

76

Question 11
Employees of Aircel understand your specific needs.
Frequenc Percent y 24 16.0 29 19.3 42 44 11 150 28.0 29.3 7.3 100.0 Valid Cumulative Percent Percent 16.0 16.0 19.3 35.3 28.0 29.3 7.3 100.0 63.3 92.7 100.0

Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total

F-TEST : 1.240

Q11
Strongly agree 8% Strongly Disagree 16%

Agree 29% Neither agree nor disagree 28%

Disagree 19%

77

Interpretations
The results of this research question revealed that 35% of all the respondents responded that they didnt agree that AIRCEL shows sincere interest in solving their problems. Only 8% of all the respondents strongly agreed that AIRCEL provides timely service. While as 29% agreed that AIRCEL shows sincere interest in solving their problems. Upon taking the F-Test, we got a value of 1.240 which suggests that there is a significance of understanding specific needs upon customer satisfaction. Moreover, AIRCEL has scored average in this dimension.

Suggestions:
6. Aircel should conduct regular services in understanding the customer needs.

78

Question 12
Aircel has operating hours that are convenient to its customers.
Frequenc Percent y 14 9.3 19 12.7 45 52 20 150 30.0 34.7 13.3 100.0 Valid Cumulative Percent Percent 9.3 9.3 12.7 22.0 30.0 34.7 13.3 100.0 52.0 86.7 100.0

Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total

F-TEST : 1.564

Q12
Strongly agree 13%

Strongly Disagree 9% Disagree 13%

Agree 35%

Neither agree nor disagree 30%

79

Interpretation
The results of this research question revealed that 22% of all the respondents responded that they didnt agree that AIRCEL has operating hours that are convenient to you. Only 13% of all the respondents strongly agreed that AIRCEL that AIRCEL has operating hours that are convenient to you. While as 35% agreed that AIRCEL that AIRCEL has operating hours that are convenient to you. Upon taking the F-Test, we got a value of 1.564 which suggests that there is a significance of having convenient operating hours upon customer satisfaction. Moreover, AIRCEL has scored well in this dimension.

Suggestions:
1. Aircel franchisees should be open till late in the evening.

80

Question 13
Aircel has good network.
Frequenc Percent y 16 10.7 19 12.7 29 48 38 150 19.3 32.0 25.3 100.0 Valid Cumulative Percent Percent 10.7 10.7 12.7 23.3 19.3 32.0 25.3 100.0 42.7 74.7 100.0

Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total

F-TEST : 1.364

Q13
Strongly agree 25%

Strongly Disagree 11% Disagree 13% Neither agree nor disagree 19%

Agree 32%

81

Interpretation
The results of this research question revealed that 24% of all the respondents responded that Aircel has a good network. Only 25% of all the respondents strongly agreed that AIRCEL has a good network. While as 32% agreed that Aircel has a good network . Upon taking the F-Test, we got a value of 1.364 which suggests that there is a significance of good network upon customer satisfaction. Moreover, AIRCEL has scored average in this dimension.

Suggestions:
Aircel should improve its network in Rural areas and interiors.

82

Question 14
Recharge coupons are easily available.
Frequenc Percent y 14 9.3 17 11.3 31 51 37 150 20.7 34.0 24.7 100.0 Valid Cumulative Percent Percent 9.3 9.3 11.3 20.7 20.7 34.0 24.7 100.0 41.3 75.3 100.0

Strongly disagree Disagree Neither Agree nor Valid Disagree Agree Strongly Agree Total

F-TEST : 0.940

Q14
Strongly agree 25% Strongly Disagree 9% Disagree 11% Neither agree nor disagree 21%

Agree 34%

83

Interpretation
The results of this research question revealed that 21% of all the respondents responded that they didnt agree that AIRCEL recharge coupons are easily available. 25% of all the respondents strongly agreed that AIRCEL recharge coupons are easily available. While as 34% agreed that AIRCEL recharge coupons are easily available. Upon taking the F-Test, we got a value of 0.940 which suggests that there is a significance of availability of recharge upon customer satisfaction. Moreover, AIRCEL has scored average in this dimension.

Suggestions:
Recharge coupons should always be kept available to retailers.

84

Question 15
Aircel has sufficient outlets.
Frequency Percent Valid Percent Cumulative Percent Strongly disagree Disagree Valid Neither Agree nor Disagree Agree Strongly Agree Total 21 12 31 48 38 150 14.0 8.0 20.7 32.0 25.3 100.0 14.0 8.0 20.7 32.0 25.3 100.0 14.0 22.0 42.7 74.7 100.0

F-TEST : 1.809

Q15
Strongly Disagree 14% Strongly agree 25% Disagree 8%

Agree 32%

Neither agree nor disagree 21%

85

Interpretation
The results of this research question revealed that 22% of all the respondents responded that they didnt agree that AIRCEL has not enough outlets. Only 25% of all the respondents strongly agreed that AIRCEL has enough outlets. While as 32% agreed that AIRCEL has enough outlets. Upon taking the F-Test, we got a value of 1.809 which suggests that there is a significance of having enough retail outlets upon customer satisfaction.

Suggestions:
Aircel has enough outlets.

86

5.2 Findings
There is great opportunity in the network service; if the network company pays attention towards their network tower then they will definitely success in their business.

1. Aircel is the second leading network company. 2. There is prospect to become number one company in the market. 3. Aircel is continuously trying to solve the network problems and focus on the more network towers. 4. Aircel is giving fewer margins to retailers and distributors regarding any other network companies which result in non-availability of recharge for customers as retailers show less interest towards keeping Aircel recharge. 5. They are not giving enough focus on customer relationship. 6. Customers problems in value added service in AIRCEL Company. 7. Aircel has stopped giving the gift items regularly to the retailers who fulfill the selling target. It has reduced the concept of Internal Marketing in Aircel. 8. Vouchers are abundantly available at all times. 9. Network failure (poor network) at night time and in interior areas and in rural areas. 10. Automatic services activated and it becomes annoying for customers to unsubscribe them. 11. SIM Activation is regarded as the best trade scheme of Aircel. 12. Customer care response is not so good. 13. Aircel customer care call is charged which makes calling customer care both undesirable as well as unethical. 14. Customers have defected to other networks such as Airtel because they feel that their grievances were not looked in stipulated time. 15. It was a genuine perception that Aircel is only interested in its own minting of money and that it didnt have sincere interest at heart for serving the customer. 87

5.3 Conclusions
SWOT ANALYSIS
STRENGTH: -1. Flexible and better call plans for the customers. 2. Enough number of retail outlets. 3. Best data plans in 2G and 3G.

WEAKNESS: -1. Network problem (poor network) in rural areas and interiors. 2. Retailers are dissatisfied. 3. Customer Care approach is not customer friendly and customers return dissatisfied.

OPPURTUNITY: -1. Introduce better plans and packs to attract maximum chunk of population across segments. 2. 4G plans if made cheaper when introduced can take a whole lot of subscribers towards its own network.

THREATS: -1. Network coverage with competitors (Vodafone, Airtel). 2. Better internal marketing by Airtel makes retailers and distributors more satisfied.

88

5.4 Suggestions
1. Improve network coverage in all the districts of region. 2. Introduce 3G services in all districts as there is a continuous shift of people from study
and work to native places.

3. Introduce attractive plans like Unlimited Plans and Call Cutters like Vodafone. 4. Better internal marketing should be introduced. Distributors and retailers should be
kept happy as they are the influencers in deciding which operator to choose from.

5. Tapping and Bill-Boards should be given to the retailers so that customers recognize
Aircel services are being provided to a particular retailer.

6. Latest plans should be made available to all the retailers so that customers know which
plan to choose from.

7. One sheet of latest plans should be given to the customer free of cost at the time of
selling of SIM card.

8. Upon providing latest plans, subscribers should be encouraged to activate their old
SIM cards with added benefits.

9. Customers should be made aware of the latest data plans. 10. Customer care call should be made free of cost like other operators. 11. Aircel should not activate services without the consent of the subscribers. 12. Aircel should allow one click customer care services to the subscribers. 13. Aircel should sponsor local events in order to improve its social visibility in the state. 14. Special plans should be made for students. 15. Free browsing of Aircel website should be introduced. 16. Margin of Retailers should be increased from 2.8 to 4% so that retailers promote the
sale of Aircel SIMS.

89

LIST OF TABLES AND FIGURES


List of Tables

Table 1 .22 Table 2 ....23 Table 3 . Table 4 .

List of figures

Figure 1 .19 Figure 2 .20 Figure 3 .22 Figure 4 .24 Figure 5 .

90

Appendix: Survey Questionnaire


Name : . Occupation................... 1 = Strongly Disagree, 5 = Strongly Agree 2 = Disagree, Age .. Qualification.. 4 = Agree,

3 =Neither Disagree Nor Agree,

1 1. 2. When Aircel Company promises to do something by a certain time, it does so. When you have a problem, Aircel company shows a sincere interest in solving it.: Aircel company performs the service right the first time. Aircel company keeps customers informed About when services will be performed. Employees in Aircel company gives you prompt service. Employees in Aircel company are always Willing to help you The behaviour of employees in aircel Company instils confidence in you.

3. 4. 5. 6.

7.

91

8.

Employees in aircel company are consistently courteous with you.

9. Aircel company has employees who give you personal attention. 10. Employees of aircel company understand your specific needs

11. Aircel company has operating hours that are convenient to all its customers.

12. Aircel has a good network

13. Recharge coupons are easily available

14. Aircel has sufficient outlets

92

BIBLIOGRAPHY

Abhishek. (n.d.). Value Added Srevices Penetration. Arnau, B. (1998). Short Time Series Analysis: C Statistic versus Edgington Model. Quality and Quantity. 63-75. . Atkinson, S. H. (2001). Opening the mail. A Postal system for the new century. Bhardwaj, S. (2011). Seminar Report on Aircel. Bitran, H. (1990). The Humanization of S ervice: Respect at the Moment ofTruth. Sloan Management Review, 89-96. Corby, M. (1979). The Postal Business 1969-79: A study in Public Sector. Heskett, S. (1990). Service Breakthroughs: Changing the Rules of theGame. New York. Khan, M. (n.d.). SWOT Analysis and Marketing Audit of Aircel. L. Schlesinger, J. H. (1991). The Service-Driven Service Company. HarvardBusiness Review, 71-81. M. Crew, P. K. (2000). Current directions in Postal reform. M. Crew, P. K. (2001). Future directions in postal reform. Mahajan, V. (2009). CONSUMER BUYING BEHAVIOR WITH A FOCUS ON PERCEPTION TOWARDS POCKET INTERNET IN DISHNET WIRELESS LIMITED, JAMMU (J&K). V. Zeithaml, A. P. (1984, August). A Conceptual Model of Service Quality and Its Implications for Future Research. Zeithaml, P. (1990). Delivering Quality Service: Balancing CustomerPerceptions and Expectations. The Free Press Division of Macmillan, Inc.

www.aircel.com www.wikipedia.com www.scribd.com www.managementparadise.com www.managementresearch.com www.slideshare.com www.doaj.com www.academia.com


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