A PROJECT REPORT ON

CONSUMER BEHAVIOUR REGARDING

VARIOUS TELECOM COMPANIES

SUBMITTED TO :-
HIMACHAL PRADESH UNIVERSITY
in partial fulfillment of requirement for the degree of

B.B.A

(UNIVERSITY COLLEGE OF BUSINESS STUDIES)

 Project Report
On

Study of consumer behavior and

attitude towards the cellular services
with reference to

AIRCEL

SUPERVISOR: SUBMITTED BY:

Mr. Virendar Kaushal Vikram Singh Sodhi

BBA 6th Sem

2015
 SUPERVISOR CERTIFICATE
This is to certify that the project report entitled Study of consumer
behavior and attitude towards the cellular services ,
submitted by Vikram Singh Sodhi to Himachal Pradesh University , in partial
fulfillment of requirements for the degree of B.B.A, has been carried out
under my direct
supervision and guidance.

The techniques used and the data reported in the dissertation are genuine to
the best of my knowledge and represents the original work of students. This
dissertation is worthy of consideration for the award of degree of Bachelors of
Business Administration.

Date : Mr. Virender Kaushal

Place: Shimla
TABLE OF CONTENTS

Chapter 1

1. INTRODUCTION

Problem statement and

objectives
Need and significance of
study
Scope of study

Chapter 2

2. INDUSTRY PROFILE

Mobile industry in India

Industry analysis
Pestle analysis

Economic
Socio culture
Technological
Environmental

Chapter 3

3.COMPANY PROFILE

Major Competitors

Airtel

Idea
 Bsnl

Vodafone

Reliance

Chapter 4

4 METHODOLOGY

Sampling size
Collect the data

Chapter 5

5. DATA ANALYSIS AND

INTERPRETATION

Chapter 6

6. LIMITATION

Chapter 7

7. CONCLUSION

Chapter 8

8. ANNEXTURE

Questionnaire

Retail questionnaire

Customer questionnaire
 ACKNOWLEDGEMENT

The Project report is based on my two months

training in Aircel Ltd, . In the preparation of this
report many persons have extended their valuable
time and co- operation to me, therefore I
acknowledge all those who remain anonymous.
First of all I am highly obliged to my guide whose co-
operation attitude and precious suggestion has been
a great sense of inspiration for me.
I also express my deep sense of gratitude to
teachers & staff members who extended their
guidance & support from time to time.
It is my duty to express gratitude to the management
of Aircel Ltd. Aircel has given me the opportunity to
complete two months summer training cum project
work in the organization.
 INTRODUCTION

The deregulation in the INDIAN telecommunication markets since

the beginning of the 1997s has brought about significant changes
in the communication industry. The mobile telephone market has
changed dramatically over the past 5-6 years in INDIA.

Mobiles have become so popular that many people use their

handset as their only phone and rarely use a landline.

The study of consumer behaviour focuses on how individuals

make decisions to spend their available resources (time, money,
efforts) on consumption related items. That includes what they
buy, why they buy it, when they buy it, where they buy it, how
often they buy it, and how often they use it.

There are a number of reasons for researching for consumer

behaviour like segmentation, target market selection, positioning,
and product/service decision, pricing decision, distribution and
promotion decision.

Model of consumer decision making process is helpful to

understand the consumer behaviour. It shows how the external
and internal factors influence the consumer attitude formation
and attitude change. The model reflects cognitive (or problem
solving) consumer and, to some degree emotional consumer.
 PROBLEM STATEMENT

The company has more opportunity to capture the market. The

cellular service industry is more competitive then ever before.

There is a need to identify the gap between consumer behavior,

attitude and company practice. The findings of this study will be
important to understand the consumer attitude, habits, opinion
and their beliefs towards the product, and the attitude towards
the company marketing efforts.

The result of the study will help to make a suitable

recommendation for cover the gap between consumer behavior
and the company marketing efforts.

OBJECTIVES OF THE PROPOSED STUDY

Objective is to study the consumer attitude & behavior towards

cellular service. This project report has been formulated with
specialty of behavioral analysis of consumer. By throwing light on
their need for communication, effort has been put on deriving
there response towards communication and its various standards.
The aim of project has been to sort out basic things that
consumer seeks while asking new Telecom connection and
promising things of Telecom that makes them reliable consumer.
Since, I have done my internship in chapra (Bihar). I have given

my best in analysis and interpretation to study chronologcal

order working pattern of Telecom industry by working with

ZONAL and AREA sales manager, super-distributor, and

retailer. The project title, which I have taken, is Study of

Consumer behavior and attitude towards cellular services with

reference to AIRCEL (chapra,Bihar), the objectives of study

are:-

PRIMARY OBJECTIVE

To understand the consumer behavior and attitude regarding

cellular market.

Identify the Potential customer in the corporate sector.

SECONDARY OBJECTIVE

To identify the action of the competition in the market

Explore and crack new accounts

 NEED AND SIGNIFICANCE OF STUDY

Understanding consumer behavior and knowing customers is

never simple. Customers may say one thing but do another. They
may not be in touch with their deeper motivations.

Consumers have more power then ever before.

Consumers have access more information than ever before.

There are a number of reasons for researching of consumer

behaviour like segmentation, target market selection, positioning,
and product/service decision, pricing decision, distribution and
promotion decision.

The main significance and need of this research is to identify the

consumers attitude & behaviour towards Cellular services and
analysis. The findings of this study will be helpful to understand
the consumer attitude and behaviour. According to the consumer
attitude and their behaviour company can make marketing
strategy for attracting the larger customers for future.
 Scope of study

In recent year, adoption of mobile phone has been exceptionally

rapid in many part of the world and especially in INDIA; mobile
phones are almost as common as wrist watch. The INDIAN
telecommunications market is characterized by a small number
of large players and a much more sizeable number of small
companies. The mobile industry has become more competitive.

It is necessary to identify the consumer attitude & behavior

towards product and what do they want or needed.

The study will be focused on the consumer attitude & behavior

towards cellular services. The findings of the research will be
helpful to identifying the consumer attitude, behavior, habits to
buy a mobile phone and company practicing. This will be vital to
identify the gap between consumer attitude and company
practicing. The result of the study will be important to make a
marketing strategy for the future customers to fulfill the company
objective.
 INDUSTRY PROFILE

MOBILE INDUSTRY IN INDIA

History of Indian Telecommunications

Started in 1851 when the first operational land lines were laid by
the government near Calcutta (seat of British power). Telephone
services were introduced in India in 1881. In 1883 telephone
services were merged with the postal system. Indian Radio
Telegraph Company (IRT) was formed in 1923. After
independence in 1947, all the foreign telecommunication
companies were nationalized to form the Posts, Telephone and
Telegraph (PTT), a monopoly run by the government's Ministry of
Communications. Telecom sector was considered as a strategic
service and the government considered it best to bring under
state's control.

The first wind of reforms in telecommunications sector began to

flow in 1980s when the private sector was allowed in
telecommunications equipment manufacturing. In 1985,
Department of Telecommunications (DOT) was established. It was
an exclusive provider of domestic and long-distance service that
would be its own regulator (separate from the postal system). In
1986, two wholly government-owned companies were created:
the Videsh Sanchar Nigam Limited (VSNL) for international
telecommunications and Mahanagar Telephone Nigam Limited
(MTNL) for service in metropolitan areas.
In 1990s, telecommunications sector benefited from the general
opening up of the economy. Also, examples of telecom revolution
in many other countries, which resulted in better quality of
service and lower tariffs, led Indian policy makers to initiate a
change process finally resulting in opening up of telecom services
sector for the private sector. National Telecom Policy (NTP) 1994
was the first attempt to give a comprehensive roadmap for the
Indian telecommunications sector. In 1997, Telecom Regulatory
Authority of India (TRAI) was created. TRAI was formed to act as a
regulator to facilitate the growth of the telecom sector. New
National Telecom Policy was adopted in 1999 and cellular services
were also launched in the same year.

Telecommunication sector in India can be divided into two

segments: Fixed Service Provider (FSPs), and Cellular Services.
Fixed line services consist of basic services, national or domestic
long distance and international long distance services. The state
operators (BSNL and MTNL), account for almost 90 per cent of
revenues from basic services. Private sector services are
presently available in selective urban areas, and collectively
account for less than 5 per cent of subscriptions. However,
private services focus on the business/corporate sector, and offer
reliable, high- end services, such as leased lines, ISDN, closed
user group and videoconferencing.

Cellular services can be further divided into two categories:

Global System for Mobile Communications (GSM) and Code
Division Multiple Access (CDMA). The GSM sector is dominated by
Airtel, Vodfone-Hutch, Idea Cellular and Aircel, while the CDMA
sector is dominated by Reliance and Tata Indicom. Opening up of
international and domestic long distance telephony services are
the major growth drivers for cellular industry. Cellular operators
get substantial revenue from these services, and compensate
them for reduction in tariffs on airtime, which along with rental
was the main source of revenue. The reduction in tariffs for
airtime, national long distance, international long distance, and
handset prices has driven demand.

Issues and Challenges of telecom industry

There are various issues surrounding the telecom Industry which

pose challenges for the Industry. These issues arise out of various
policy announcements by the regulator which has resulted in
increased competition between the players? If we take a closer
look at the issues and challenges , a majority of them revolve
around the most important resource in the telecom Industry-
SPECTRUM. Spectrum is a range of electromagnetic radio
frequencies used for transmission of voice, data and images.

Telecom operators send and receive frequencies to enable

communication between two phones. Enhancement of subscriber
criteria for allocation of additional 2G spectrum the controversy
began when TRAI and DOTs technical advisory board rose the
bar on the minimum subscriber norms for operators to qualify for
additional spectrum. The new subscriber norms were around
three times higher than the existing ones. This move was
challenged by GSM operators in the telecom tribunal. DoT then
referred the matter to its technical arm, Telecom Engineering
Centre (TEC), which in its report recommended that the allocation
norms should be hiked between 2-15 times depending on the
circle. The Cellular Operators Association Of India, the body
representing all GSM players, said that it would fle yet another
petition with the telecom tribunal challenging the TEC report.
Access licence made technology neutral the Govt also permitted
existing universal access service licencees to offer wireless
services using either GSM or CDMA technology. This decision
paved way for existing CDMA operators to provide GSM-based
services and vice-versa, subject to the availability of spectrum
and payment of the prescribed fees. 3G spectrum auction to be
open to all in another move, the government announced that 3G
spectrum would be auctioned, which would be open to all. This
means that both existing operators and new entrants, whether
owned by domestic entrepreneurs or foreign companies such as
AT&T and Deutsche Telekom, who currently do not have presence
in India, would be eligible to bid for 3G spectrum. This view is in
contradiction with the Bharti Airtel Ltd and others we expect the
mobile subscriber base for the industry to reach 366 mn by 2012
from 166 mn as on 2007 Telecom Regulatory Authority of Indias
(TRAI) recommendation of allocating 3G spectrum only to existing
service licencees. Mobile Number Portability (MNP) from last
quarter of 2008 furthermore, to reduce entry barriers and
increase competition, the Govt. has decided to implement Mobile
Number Portability (MNP) in a phased manner.
MNP would give subscribers the freedom to change their existing
wireless operator while retaining the same number. To begin with,
MNP would be implemented in the four metros of Mumbai,
Chennai, Delhi, and Kolkatta during the last quarter of 2008.

Threat from satellite telephony:

A satellite telephone is a mobile phone that communicates

directly with orbiting communications satellites. Depending on
the architecture of a particular system, coverage may include the
entire Earth, or only specifc regions. These satellite phones
provide worldwide connectivity on a single number. The largest
users of satellite phones in India as well as worldwide, till date,
are the government and defense forces. However these phones
can be used only after the No Objection Certifcate (NOC) is issued
by DOT. If cost of these handsets reduces, then they may pose a
threat.

Classification of Telecommunication services:

Basic services

Cellular services

Internet Service Provider (ISP)

The telecom commission was set up by the government of

INDIA& notification dated 11 Apirl 1989 with admistrative &
financial power of government deal with various aspect of
telecommunication. The entry of private sector in the provision of
telecom service a need was full to have an independent
regulatory body the above requirement was indicated in the
guideline issue for entry of private sector in basic telecom
service. In 1997 telecom regulation act India was established in
pursuance which was act of parliaments to regulate the service or
it amended by act 2000. Mobiles have become so popular that
many people use their handset as their only phone and rarely use
a landline. The de regulation in the INDIA telecommunication
markets since the beginning of the 1997s has brought about
significant changes in the communication industry. Price
competition and newly created services the telecommunication
industry has become the largest industry. In recent year, adoption
of mobile phone has been exceptionally rapid in many part of the
world and especially in INDIA; mobile phones are Almost as
common as wrist watch
 INDUSTRY ANALYSIS

Mobile operators with subscribers wise & market

share wise of India July 2009

S.N Service Subscribers(M Market Share

o. Providers n.) (%)
1 Bharti Airtel 82.92 24.67
2 Reliance Comm 59.57 17.72
3 Vodafone 58.76 17.49
4 BSNL 45.28 13.47
5 Idea Cellular 32.81 9.76
Tata
6 Teleservices 31.02 9.23
7 Aircel 15.38 4.57
8 MTNL 4.1 1.22
9 Spice Telecom 3.71 1.1
10 BPL 1.88 0.56
Online Retailers

There is a correlation between high spending mobile phone users

and Internet users, making the Internet a natural sales channel
for mobile phones. Almost every retailer of mobile phones now
has a fully interactive website, often mirroring the choice in the
shops, and sometimes offering special Internet-only deals. For the
major retail chains and the networks, the Internet creates a
showcase as well as giving consumers flexibility about where to
buy a mobile phone. It also gives them a means of competing for
the Internet consumer, against a rising tide of other specialists.
Many of the small independent mobile phone shops have
established websites and there are some that have opted to
major on Internet selling.

There is little doubt that Internet retailing has increased share of

the mobile phone market in recent years. There are often price
advantages for consumers, and accreditation by The Consumer's
Association for good quality outlets helps to give first time buyers
confidence about where to shop. Price comparisons may be made
via search engines on the Internet, cutting the search time that
consumers spend looking for what they want. This tends to make
the Internet especially price-aggressive.

Pestle Analysis

Political /legal

In January 2005 the competition commission ruled that mobile

phone companies termination (the prices they charge for access
to their network from other network & landlines) are too high .it
recommended an immediate one off prices reduction around
14.41%
New regulation published by the five mobile phone operator in
India Bharti Airtel, Vodafone, Bsnl, Reliance, Idea will stop
children from entering immoderate chartroom, porn sites and
Grambling. Regulatory restriction on termination charges and
calls to landlines are forcing prices down

Economic

Population

India population growth is high . As the mobile phone market is

already nearing growth point, this means that the total no. of
subscriber is to grow.

GDP

The India gross domestic product is increasing, which is a positive

sign for the mobile phone market. The contribution of the Indian
telecom sector to the nation's GDP is expected to increase from 2
per cent in 2006 to an estimated 3.6 per cent in 2010.

Disposable Income

Household disposable income is on the increase. This may be

positive for retailers hopes of increasing ARPU and no. services
users take up through their phones.
Unemployment

The India unemployment rate is high, which is a negative sign for

mobile retailer, because there is a large proportions of the
population earning low and therefore with lower disposable
income to spend on mobile phones

Social Culture

Mobile has become fashion necessary and social indicator.Using

text, photo messaging, games and location based information,
downloading ring tones, mobile internet access, replacement
trend and customer wants pick and mix tariffs.

More trend of replacement.

Increasing rural subscribers

Increased in pay as you go instead of monthly tariff

Changing life style has impact on their buying behavior; customer

wants new technology new different tariffs and new mobile sets
etc. These changes are directly impact on the sale of mobile
phones. 78% sales in north India.

Consumers are far more interested in how handsets fit in with

their lifestyle than they are in screen size, onboard memory or
the chip inside, shows an in-depth study by telecommunications
company Ericsson. Dating services and other more adult match-
making services are proving to be a strong stream of revenue
worth millions for mobile companies. There are currently about 18
million video phones in use in the India. With more people buying
video mobiles, 3G dating could be the basis for a successful and
safe way to meet people.

Lots of people find it easier to be honest writing e-mail or text

than face-to-face. Lots people are quite shy and they feel
vulnerable."

Technological

High speed of technology transfer ( New function sets, 3G, 4G,

Photo messaging, MMS). Replacement market is highly increasing
of mobile phones due to new technological changes .Mobile
phone firms and manufacturers, including Nokia, LG, Samsung
and Motorola, have joined forces to develop the next generation
of high-speed networks. The technology will be more than 10
times quicker than current 3G services.

Mobile phone firms and manufacturers have joined forces to

develop the next generation of high-speed networks. The
technology will be more than 10 times quicker than current 3G
services.

As technology continues to develop, it is bringing about real

changes in people's lifestyles, making them more dependent on
information and communication technologies.
Environmental

In India has million of handset & sim cadres are discarded every
year. These phones represent a serious environmental problem as
they contain a number of hazardous materials. The cadmium
from one battery is enough to pollute 600,000 liters of water. The
directive waste will require mobile phones to be recycled or
disposed of in an environmentally responsible manner at the end
of their lives. There will be obligations on all sectors of the
telecommunications industry to play a responsible role in handset
waste management
 COMPANY PROFILE

On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepon

Seluler. Maxis is currently in the middle of rolling out a Java wide
network to establish the company as a national operator. The
initial launch phase encompasses 1,300 BTS, providing both 2G
and 3G services. NTS expects to have up to 480 employees by
launch date and to increase significantly upon launching. Maxis
in India Maxis completed the acquisition of a 74% stake in Aircel
on March 21, 2006. Currently, Aircel has operations in 9 of the 23-
telecom circles of India - Chennai, Tamil Nadu, West Bengal,
Orissa, Assam, North East, Jammu and Kashmir, Himachal
Pradesh and Bihar. Aircel launched its services in Bihar and
Himachal Pradesh in December 2006 and also recently received
the licenses to operate in the remaining 14- telecom circles of
India giving it the ability to become a pan-India player. Maxis
expansion into Indonesia and India is another milestone in our
aspiration to be the regional communications leader of choice.
The acquisition of a 51% stake in PT Natrindo Telepon Seluler
(NTS), Indonesia and a 74% equity interest in Aircel, India
provides new growth opportunities for Maxis. These acquisitions
give Maxis a strong foothold in two of the worlds most attractive
high-growth, low-penetration markets. This marks the beginning
of the new world of Maxis a world beyond voice, and beyond
borders. MAP Maxis in Indonesia On 29th April 2005, Maxis
acquired 51% of PT Natrindo Telepon Seluler. Maxis is currently in
the middle of rolling out a Java wide network to establish the
company as a national operator. The initial launch phase
encompasses 1,300 BTS, providing both 2G and 3G services. NTS
expects to have up to 480 employees by launch date and to
increase significantly upon launching. Maxis in India Maxis
completed the acquisition of a 74% stake in Aircel on March 21,
2006. Currently, Aircel has operations in 9 of the 23 telecom
circles of India - Chennai, Tamil Nadu, West Bengal, Orissa,
Assam, North East, Jammu and Kashmir, Himachal Pradesh and
Bihar. Aircel launched its services in Bihar and Himachal Pradesh
in December 2006 and also recently received the licenses to
operate in the remaining 14 telecom circles of India giving it the
ability to become a pan- India player. Aircel expects to
aggressively grow its subscriber base in India and is developing a
broad range of new propositions for its customers - from
branding, to increased network coverage, to innovative product
and service offerings, to refreshing customer experience. As of
31st December 2006, Aircel serves more than 4.5 million
subscribers with a network comprising of almost 4,000 BTS. Aircel
continues to be the market leader in Tamil Nadu and Chennai
circle. Aircels network provides 2G and GPRS services, and is
EDGE capable. Aircel is also currently in the process of
conducting 3G Trials across different cities in India. In addition,
Aircel is the first cellular operator in India to launch wireless
Internet services using WiMAX technology. It aims to immediately
extend its WiMax coverage to over 20 cities to serve enterprise
broadband customers. Over the next few quarters, India is
expected to add new subscribers at the rate of 5 to 6 million per
month. India offers huge opportunities for Aircel given the current
low mobile penetrations levels as well as challenges in terms of
its geographic spread and low ARPU levels. Aircel expects to
aggressively grow its subscriber base in India and is developing a
broad range of new propositions for its customers - from
branding, to increased network coverage, to innovative product
and service offerings, to refreshing customer experience.
As of 31st December 2006, Aircel serves more than 4.5 million
subscribers with a network comprising of almost 4,000 BTS. Aircel
continues to be the market leader in Tamil Nadu and Chennai
circle. Aircels network provides 2G and GPRS services, and is
EDGE capable. Aircel is also currently in the process of
conducting 3G Trials across different cities in India. In addition,
Aircel is the first cellular operator in India to launch wireless
Internet services using WiMAX technology. It aims to immediately
extend its WiMax coverage to over 20 cities to serve enterprise
broadband customers. Over the next few quarters, India is
expected to add new subscribers at the rate of 5 to 6 million per
month. India offers huge opportunities for Aircel given the current
low mobile penetrations levels as well as challenges in terms of
its geographic spread and low ARPU levels Aircels current and
proposed footprint is illustrated below.

MISSION STATEMENT : 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. OUR 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.

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.

Subscription Base Of Different Service Provider in Bihar (May-

2009)
Product

Product related activities include new technology, brand name,

features, design and packaging. Brand name effect is the
consumers perception of the role that brand name plays in the
decision making process of choosing the most preferred
product/services.

According to information integration theory proposed by Bettman

et al. (1975) in the context of product evaluations, consumers
assign importance weights and scale values (utilities) to product
attributes for which information is available at the time of
decision making, and then combine these weights and values
according to some rule(e.g. adding, averaging) to come up with
an evaluation.

Consumer with low product knowledge might not be able to

perform trade off contrasts among brands because these
comparisons are likely to require some minimal level of
knowledge and familiarity about brands .In contrast, consumers
with high product category knowledge might have sufficient
familiarity and expertise with the product category to perform
inference and interpretation on brands as an enriched quality
cue in implementing customization process.

In the mobile phone market product plays an important role to

purchasing the particular mobile phone. This is actually due to
new innovation. So consumers behaviour influenced toward
mobile phone products. Services are also important part for the
mobile industry. Services include price promise, Insurance,
exchange offers, and other services like work mobile abroad.
There is also a range of fixed line telephones and other fixed line
equipment such as fax machines. The consumers can opt for pay-
as-you-go or contract payments, as well as wide choice of 'value
packs' which offer bundles of text messages, picture messaging
services or airtime. The company claims that its expert sales staff
can help you to select the best value package depending on how
much you use the phone, and how you prefer to pay.
Price

Prices efforts include promotional prices, discount, reduce the

price of product/services and competitor pricing. Commodity
prices in the market play a relevant role in consumer decision
making; they influence what, when, where and how much
consumer buy. Price promotion by a retailer for a particular brand
might adversely affect the sales level of competing retailer if
consumer actively switch store to take advantage of the deal.
Consumer who perceive prices more accurately are the ones who
place a higher degree of importance on them its investigate two
potential subscribers decision, using the graphic device of a
price/acceptance and a charge/acceptance function towards
mobile.

The study identified that most customers, who are willing to swap
providers, will make their decision on price first. Consumer
knowledge of price plays an important role in pricing
management since it not only determines how prices are
perceived and valued but also influenced consumers purchase
decision. Price is important factor which influence the customer
attitude towards mobile phone. At the point in time of purchase
the customer faces, first of all, initial financial, the purchase price
for the set and the fixed charges for the connection to the
network.

Another aspect at the time of purchase is the consideration of the

use charges, such as the price per call minute.There are very

competitive price in the market. Most of the mobile phone

companies are offering different network.

Promotion

Advertisement, sales promotion, public relations and direct

marketing are the promotional tools.

Sales promotion consists of a wide variety of short term tactical

promotional tools aimed at generating a desired response from
customers. Sales promotion includes tools for consumer
promotion (sample, coupons, cash refund, offers, prices off,
premium, prizes, patronage rewards free trials, warranty, tie in
promotions, cross promotions, point of purchase displays and
demonstration); trade promotion ( price off, advertising and
display allowance, and free goods).

Public relation involves a variety of programs designed to

promote a companys image or its individual product. The main
tools of PR are publications, events, news, speeches, public-
services activities, and identity media.

Direct marketing is an interactive marketing system that uses

one or more media to affect a measurable response or
transaction at any location. Electronic marketing is a part of
direct marketing. Its media include television, press and radio
advertisements.
MAJOR COMPETITOR

AIRTEL

Bharti Airtel formerly known as Bharti Tele-Ventures Limited

(BTVL) is among India's largest mobile phone and Fixed Network
operators. With more than 60 million subscriptions as of 13th
February 2008. It offers its mobile services under the Airtel brand
and is headed by Sunil Mittal. The company also provides
telephone services and Internet access over DSL in 14 circles.

The company complements its mobile, broadband & telephone

services with national and international long distance services.
The company also has a submarine cable landing station at
Chennai, which connects the submarine cable connecting
Chennai and Singapore. The company provides reliable end-to-
end data and enterprise services to the corporate customers by
leveraging its nationwide fiber optic backbone, last mile
connectivity in fixed-line and mobile circles, VSATs, ISP and
international bandwidth access through the gateways and landing
station.

Airtel is the largest cellular service provider in India in terms of

number of subscribers. Bharti Airtel owns the Airtel brand and
provides the following services under the brand name Airtel:
Mobile Services (using GSM Technology), Broadband & Telephone
Services (Fixed line, Internet Connectivity (DSL) and Leased Line),
Long Distance Services and Enterprise Services
(Telecommunications Consulting for corporates). Leading
international telecommunication companies such as Vodafone
and SingTel held partial stakes in Bharti Airtel.

In April 2006 Bharti Global Limited was awarded a

telecommunications license in Jersey in the Channel Islands by
the local telecommunications regulator the JCRA. In September
2006 the Office of Utility Regulation in Guernsey awarded
Guernsey Airtel with a mobile telecommunications license. In May
2007 Jersey Airtel and Guernsey Airtel announced the launch of a
relationship with Vodafone for island mobile subscribers. In July
2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900
million dollar expansion of its mobile and fixed network.[3] In
August 2007, the company announced it will be launching a
customized version of Google search engine that will provide an
'array of services' to its broadband customers.

Bharti Enterprises is a pioneer in telecom sector and the group is

widening its horizons by entering new business areas such as
insurance and retail. Bharti Enterprises has created a vantage
position for itself in the global telecommunications sector. Bharti
Airtel Limited occupies numero uno status in mobile telephony in
India while its brand 'Beetel' is the largest manufacturer and
exporter of world class telecom terminals.

Founder of Bharti Group is Sunil Mittal. In 1983, Sunil Mittal

entered into an agreement with Germany's Siemens to
manufacture the company's push-button telephone models for
the Indian market. In 1986, Sunil Bharti Mittal incorporated Bharti
Telecom Limited (BTL) and his company became the first in India
to offer push-button telephones, establishing the basis of Bharti
Enterprises. This first-mover advantage allowed Sunil Mittal to
expand his manufacturing capacity elsewhere in the
telecommunications market. By the early 1990s, Sunil Mittal had
also launched the country's first fax machines and its first
cordless telephones. In 1992, Sunil Mittal won a bid to build a
cellular phone network in Delhi.

In 1995, Sunil Mittal incorporated the cellular operations as Bharti

Tele-Ventures and launched service in Delhi. In 1996, cellular
service was extended to Himachal Pradesh. In 1999, Bharti
Enterprises acquired control of JT Holdings, and extended cellular
operations to Karnataka and Andhra Pradesh. In 2000, Bharti
acquired control of Skycell Communications, in Chennai. In 2001,
the company acquired control of Spice Cell in Calcutta. Bharti
Enterprises went public in 2002, and the company was listed on
Mumbai Stock Exchange and National Stock Exchange of India. In
2003, the cellular phone operations were rebranded under the
single AirTel brand. In 2004, Bharti acquired control of Hexacom
and entered Rajasthan. In 2005, Bharti extended its network to
Andaman and Nicobar. Today, Airtel is the laegest cellular service
provider in India.
The Company today offers mobile services in Fifteen out of 22
circles in India. As of April 30, 2003, approximately 91% of Indias
total number of mobile subscribers resided Karnataka circles.

The company provides reliable end-to-end data & enterprise

services to the corporate customers by leveraging its nationwide
fiber optic backbone, last mile connectivity in fixed-line and
mobile circles, VSATs, ISP and international bandwidth access
through our gateways and landing station.in Bhartis existing and
proposed mobile circles, according to COAI reports. Bharti Tele-
Ventures was the first private sector operator to provide fixed-line
services in India when it commenced providing services in the
Madhya Pradesh & Chhattisgarh circle in June 1998. BTVL also
provides fixed-line services in Haryana, Delhi, Tamil Nadu and
Karnataka circles.

The company complements its mobile and fixed-line services

with national and international long distance services. The
company also has a submarine cable landing station at Chennai,
which connects the submarine cable connecting Chennai and
Singapore. The long distance and data enterprise services has
enormous support from this connectivity and facilitates us in
offering best value to our customers.

IDEA

Cellular is a part of Aditya Birla Nuvo, a flagship company of the

Aditya Birla Group. It is a wireless telephony company operating
in various states in India. It initially started in 1995 as a joint
venture among the Tatas, Aditya Birla Group and AT&T by
merging "'Wings Cellular'" operating in Madhya Pradesh, UP West,
Rajasthan and Tata Cellular as well as Birla AT&T
Communications.Idea is a leading cellular operator, with a
subscriber base of over seven million across the country in its
eight circle operation. It controls a portfolio of India's most
attractive and mainly contiguous properties including the 11
states of Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra
Pradesh, Madhya Pradesh, Chattisgarh, Uttar Pradesh (West),
Uttaranchal, Haryana, Kerala and Delhi (inclusive of NCR).

Having operations in four of the five largest cellular circles in

India, Idea is the market leader in the Maharashtra and Goa; Uttar
Pradesh (West) and Madhya Pradesh and Chattisgarh circles in
terms of number of subscribers. Idea's Delhi circle is also the
fastest-growing fourth operator in the country, which is an
achievement in itself and showcases customer confidence of a
high degree. Idea's footprint currently covers approximately 45
per cent of India's population and over 50 per cent of the
potential telecom market. Idea covers over 1000 towns along
with a total highway connectivity of over 10,000 kilometres.
Today, there are over 350 direct customer service outlets and a
well-entrenched network of over 48,000 retailers and dealers
across the country. Each circle with its own dedicated call centre
single call resolution approach towards the customer is a unique
effort provided by any operator.

Idea offers roaming across 560 operators in India and across the
world. With a clear focus on providing unique, distinct innovative
and tremendously valuable services to the subscribers, Idea
embarked upon an initiative to set up a VAS (value-added
services) factory within the company, which conceptualizes and
provides tailor-made value-added services. As a leader in value
added services, innovation is central to the VAS factory. Idea was
the first and only company to launch music messaging with
'Cellular Jockey' to all its subscribers. Idea has launched a voice
portal with 'Say IDEA'. Idea also launched Global SMS for the first
time in the country, which allows the users to send and receive
SMS from over 540 networks and 170 countries across
technology platforms like GSM, CDMA, TDMA and satellite
phones.

A frontrunner in introducing revolutionary tariff plans, Idea has

the distinction of offering the most customer friendly and
competitive pre-paid offerings, for the first time in India, with 'Eco
Talk', 'Flexi-charge', 'Super Power' and other segmented offerings.
'Lifetime Idea' is the first and only loyalty program, for pre- paid
customers, introduced by a cellular brand. 'Pay Easy' is bill
payment through the effective use of the pre-paid channel. Idea
is the only operator in the world to launch this service. It is also
the only cellular operator which has launched a complete suite of
mobile e-mail services. Idea offers a wide range of cellular
services and products. Its post-paid and pre-paid services are
supported by a variety of package plans to suit the needs of
different customers:
BSNL (Bharat

Sanchar Nigam Ltd)

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's

7th largest Telecommunications Company providing
comprehensive range of telecom services in India: Wireline,
CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service,
MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of
five years it has become one of the largest public sector unit in
India. BSNL has installed Quality Telecom Network in the country
and now focusing on improving it, expanding the network,
introducing new telecom services with ICT applications in villages
and wining customer's confidence. Today, it has about 47.3
million line basic telephone capacity, 4 million WLL
capacity, 20.1 Million GSM Capacity, more than 37382
fixed exchanges, 18000 BTS, 287 Satellite Stations,
480196 Rkm of OFC Cable, 63730 Rkm of Microwave
Network connecting 602 Districts, 7330 cities/towns and
BSNL is the only service provider, making focused efforts and
planned initiatives to bridge the Rural-Urban Digital Divide ICT
sector. In fact there is no telecom operator in the country to beat its
reach with its wide network giving services in every nook & corner
of country and operates across India except Delhi & Mumbai.
Whether it is inaccessible areas of Siachen glacier and North-
eastern region of the country. BSNL serves its customers with its
wide bouquet of telecom services. BSNL is numero uno operator of
India in all services in its license area. The company offers vide
ranging & most transparent tariff schemes designed to suite every
customer.
BSNL cellular service, CellOne, has more than 17.8 million cellular
customers, garnering 24 percent of all mobile users as its
subscribers. That means that almost every fourth mobile user in
the country has a BSNL connection. In basic services, BSNL is
miles ahead of its rivals, with 35.1 million Basic Phone
subscribers i.e. 85 per cent share of the subscriber base and 92
percent share in revenue terms.BSNL has more than 2.5 million
WLL subscribers and 2.5 million Internet Customers who access
Internet through various modes viz. Dial-up, Leased Line, DIAS,
Account Less Internet(CLI). BSNL has been adjudged as the
NUMBER

ONE ISP in the country. BSNL has set up a world class multi-
gigabit, multi-protocol convergent IP infrastructure that provides
convergent services like voice, data and video through the same
Backbone and Broadband Access Network. At present there are
0.6 million Data Onebroadband customers.
The company has vast experience in Planning, Installation,

network integration and Maintenance of Switching & Scaling new

heights of success, the present turnover of BSNL is more

than Rs.351,820 million (US $ 8 billion) with net profit to

the tune of Rs.99,390 million (US $ 2.26 billion) for last

financial year. The infrastructure asset on telephone alone is

worth about Rs.630,000 million (US $ 14.37 billion). BSNL plans to

expand its customer base from present 47 millions lines to 125

million lines by December 2007 and infrastructure investment

plan to the tune of Rs. 733 crores (US$ 16.67 million) in the next

three years. The turnover, nationwide coverage, reach,

comprehensive range of telecom services and the desire to excel

has made BSNL the No. 1 Telecom Company of India.

VODAFONE

Vodafone Essar is the Indian subsidiary of Vodafone Group and

commenced operations in 1994 when its predecessor Hutchison
Telecom acquired the cellular license for Mumbai. The company
now has operations across the country with over 74.08 million
customers**. Over the years, Vodafone Essar, under the Hutch
brand, has been named the Most Respected Telecom Company,
the Best Mobile Service in the country and the Most Creative
and Most Effective Advertiser of the Year. Vodafone Group is the
worlds leading international mobile communications corporation.
It currently has equity interests in 27 countries
RELIANCE

The Late Dhirubhai Ambani dreamt of a digital India an India

where the common man would have access to affordable means
of information and communication. Dhirubhai, who single-
handedly built Indias largest private sector company virtually
from scratch, had stated as early as 1999: Make the tools of
information and communication available to people at an
affordable cost. They will overcome the handicaps of illiteracy
and lack of mobility.

It was with this belief in mind that Reliance Communications

(formerly Reliance Infocomm) started laying 60,000 route
kilometres of a pan-India fibre optic backbone. This backbone was
commissioned on 28 December 2002, the auspicious occasion of
Dhirubhais 70th birthday, though sadly after his unexpected
demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity,

integrated (both wireless and wireline) and convergent (voice,
data and video) digital network. It is capable of delivering a range
of services spanning the entire infocomm (information and
communication) value chain, including infrastructure and services
for enterprises as well as individuals, applications, and

consulting.
Today, Reliance Communications is revolutionising the way India
communicates and networks, truly bringing about a new way of
life.
 DATA ANALYSIS & INTREPRETATION

Marketing research is the systematic and objective identification

collection, analysis, dissemination and use of information for the
purpose of improving, recognizing and reacting to marketing
opportunities and problem

During the course of conducting the study the information were

gathered mainly through the primary sources.

Conducting field survey by talking to consumer and also to

retailer who is dealing with SIM cards and recharge voucher and
the methodology used in the survey was personal observation ,
experimentation and interview with the retailer with the help of
schedule.

Simple random Sampling

To consider the research aim the Simple Random is used to

research the consumer attitude & behaviour towards cellular
services .

Simple random sampling is an approach in which each population

member, and thus each possible sample, has an equal probability
of being selected.
Sampling size :

For the Customer:-

Control Population
Characteristic Composition
Sex:
Male 67
Female 33

Age:
15-25 25
25-35 25
35-45 25
45 and above 25

Note: Sample unit have been taking into confederation the

people who are using pre paid service only.

For the Retailer:-

Control Population
Characteristic Composition
Sex:
Male 90
Female 10

Age:
15-25 15
25-35 40
35-45 30
45 and above 15
Collect the data :

The research designer has a wide variety of methods to consider,

either singly or in combination.

Data collection methods

Secondary sources

Information system

Databanks of other organisation

Syndicate services

A search for secondary data generally follows the statement of

objectives. Secondary information is any data originally
generated for some purpose other than the present research
objective. It includes findings based on research done by outside
organisation; data generated in-house for earlier study, and even
customer information collected by the firms sales or credit
department.

The secondary data has been already collected from annual

reports.

Primary sources

Qualitative research
 Quantitative research

The primary research consists of quantitative and qualitative

research. Both of these have various techniques to collect the
data for research. It is the nature of the research that determines
what method should be adopted.

Research findings and conclusion can be a valuable sources of

information that can enhance the decision making process. While
research studies do not actually solve the problems or make
decision, they can guide information that can guide the decision
and action of management.

Have universal applicability, but qualitative methods can be used

to determine the plausibility of quantitative research.

Qualitative Data

The purpose of qualitative research is to find out what is in a

consumers mind. It is done to access and also get a rough idea
about the persons perspective. Feelings thoughts, intentions and
behavior that can be trace through this research.

Qualitative methodology provides powerful tools for research in

management.
 QUESTIONNAIRE

Customer Questionnaire

Retailer Questionnaire
 Customer Questionnaire:

Section A (Personal Details)

Gender :

Male Female

Age

15-20 21-25 26-30

31-35 36-45 46 and above

Qualification :

Secondary school University Graduate

Post Graduate Others

Profession :

Professional Business Class Official

Self Employed Students Unemployed

Section B (Purchasing Behavior / Habits)

Q.1. Which Prepaid Cellular services you are using?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

(g) Vodafone (h) Tata Indicom
Q.2.Would you like to change your service provider?

(a) Yes (b) No

Q.3. Why do you want to change your Mobile

product/service?
(a)New technology (b) Change Tariff
(c) Change network (d) Lost
(e) Others (please specify)

Q.4. To which Prepaid Cellular services you want to move

on?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

(g) Vodafone (h) Tata Indicom

Q.5.Which of the following do you use other then calling?

(a) SMS (b) MMS (c) Internet

(d) Games (e) Wall Paper (f) Downloading
(g) Others

Q.6. From where you Get your recharge done or buy

recharge coupons.
(a) Retailer (b) Online

Q.7. you prefer to have easy recharge or buy recharge

coupons?

(a) Easy recharge (b) Recharge coupon


Q.8. where did you get information about the Retailer?

(a) News paper (b) Magazine (c) TV Ad

(d) Friends (e) Colleagues (f) Online
(g) Leaflet (h) Phone (i) Others

Q.9. Where did you get the information about the

product/service?
(a) News paper (b) Magazine (c) TV Ad

(d) Friends (e) Colleagues (f) online

(g) Leaflet (h) Retailer (i) others

Q.10.Why has you chosen your service provider?

(a) Reference (b) Prior experience

(c) Network (d) Provide clear voice

(e) Excellent service (f) Price promise
(g) Availability (h) others

Q.11. which cellular network service is best?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

(g) Vodafone (h) Tata Indicom
Q.12. which cellular service has best voice clarity?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

(g) Vodafone (h) Tata Indicom

Q.13. which cellular service offers you cheapest call

charge?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

(g) Vodafone (h) Tata Indicom

Q.14. which cellular service offers you best customer support?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

(g) Vodafone (h) Tata Indicom
 CONCLUSION

To consider the research aim and objectives, researcher identified

that random sampling strategy will be the best for research for
collecting the primary data collection.

The research will be surveyed among 100 mobile phone users

living in chapra area.

The secondary data has been collected from the text books,

electronic journals and company annual reports.

The value of information would be importance of the decision making

in development for making marketing strategy for to increase number
of customers
 ANNEXTURE

QUESTIONNAIRE

Purchasing Behavior / Habits

Q.1. Which Prepaid Cellular services you are using?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

(g) Vodafone (h) Tata Indicom

Inference: In term of performance Aritel is leading but Aircel has

hit the 2nd place followed by Reliance & Tata Indicom.

Q.2.Would you like to change your service provider?
(a) Yes (b) No

Q.3. Why do you want to change your Mobile

product/service?
(a) New technology (b) Change Tariff

(c) Change network (d) Lost
(e) Others

Q.4. To which Prepaid Cellular services you want to

move on?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

(g) Vodafone (h) Tata Indicom

Q.5.Which of the following do you use other then

calling?

(a) SMS (b) MMS (c) Internet

(d) Games (e) Wall Paper (f) Downloading
(g) Others

From where you Get your recharge done or buy

recharge coupons.
(a) Retailer (b) Online

Q.7. you prefer to have easy recharge or buy recharge

coupons?
(a) Easy recharge (b) Recharge coupon

Q.8. where did you get information about the

Retailer?

(a) News paper (b) Magazine (c) TV Ad

(d) Friends (e) Colleagues (f) Online
(g) Leaflet (h) Phone (i) Others

Q.9 Where did you get the information about the

product/service?

(a)News paper (b) Magazine (c) TV Ad

(d) Friends (e) Colleagues (f) online

(g) Leaflet (h) Retailer (i) others

Q.10.Why has you chosen your service provider?

(a) Reference (b) Prior experience

(c) Network (d) Provide clear voice

(e) Excellent service (f) Price promise
(g) Availability (h)others

Q.11. which cellular network service is best?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

(g) Vodafone (h) Tata Indicom

Q.12. which cellular service has best voice clarity?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

(g) Vodafone (h) Tata Indicom

Q.13. which cellular service offers you cheapest call

charge?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

(g) Vodafone (h) Tata Indicom

Q.14. which cellular service offers you best customer

support?

(a) Aircel (b) Airtel (c) BSNL

(d) Idea (e) MTS (f) Reliance

RECOMMENDATION

After analyzing the current practices of the company, consumer

response from the survey and interview with company staff the
following recommendation is the best to change attitude of
customers and attract larger number of customers
Increase retailer store in rural area

The Company has large number of strengths as discussed in

industry analysis. The most potential strength is strong
distribution channel on high street. Rural subscription is
increasing in last few years. The company is already planning to
improve this strength; this will be the best idea for making the
positive belief to the customers and help to increase the existing
strength. The company can capture more new customers by
opening retail stores in small places and advertise in the
adjoining area.

Attract through promotion

TV, news paper, magazines ads are more effective then others as
identified from the consumer and company response That
companies make their 4Ps strategy according to consumer
attitude towards product, promotion, price and placement. The
company should spend more on these media instead of leaflets
and radio ads because consumers attitude towards these are
positive then others. Company can also promote the business
through changing brand belief & offering price promise.
Educate customers

After analyzing the customer response and company practices, it

is identified that consumers are changing mobile sets very often
due to high speed of technology innovation. The company should
encourage the existing customers and others to adopt the new
technology and educate them for Product features and benefits. It
has been identified that some of the customers do not know
about the attribute. Demonstration and trial is the effective
source to educate about the new technology. This will directly
influence the consumer attitude towards company.

Training to retailer staff

It has been identified that some of the customers are not satisfied
with the staff help to choose the right product and services.
Company should give the required training to retail staff about
product knowledge and competitor offerings. Make sure the staff
is advising right product and services at the first time according
to consumer requirement. This will help the customers to
evaluate the purchase information.

Obtain customers feedback

Customers are influenced by reference group as discussed in

analysis and it is also identified by the primary research.
Moreover customer have more power then ever before.
Consumers have access more information than ever before.

Company should take a feedback from the existing customers

after a regular interval and resolve the problem if any. To retain
customers it is necessary to obtain consumer feedback and
offered the product and services according to their feedback.

If they will be satisfied then they come to repeat purchase and

moreover they will give the reference to others for buying
product from the company. This would be also help to make brand
loyalty of the company.
.
 REFERENCES

For the completion of the project report references are being

made mostly from the corporate office and from books and
different websites:

BOOKS:

1. Philip Kotler , Marketing Management

2. Marketing Research, Grun & Tull

3. Marketing Research, Aaker Kumar Day

4. Marketing Research, Seymor

5. Business India, Business World Etc

INTERNET SITES:

1. www.aircel.co.in