IDEA COMPANY

RAGINI PANDEY

To start any business, First of all we need finance and the success
of that businessentirely depends on the proper management of day-
to-day finance and the management of this short-term capital or
finance of the business is called WORKING CAPITAL
MANAGEMENT

Working Capital is the money used to pay for the everyday trading
activities carried out by the business - stationery needs, staff
salaries and wages, rent, energy bills, payments for supplies and so
on.

I have tried to put my best effort to complete this task on the basis
of skill that I have achieved during the last one year study in the
institute. I have tried to put my maximum effort to get the accurate
statistical data. However I would appreciate if any mistakes are
brought to me by the reader.

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Working Capital (abbreviated WC) is a financial metric which

represents Operating liquidity available to a business, organization or other
entity, including governmental entities.

Along with working capital is considered a part of operating capital. Gross

working capital is equal to current assets. Working capital is calculated
as Current assets minus Current liabilities.

If current assets are less than current liabilities, an entity has a working
capital deficiency, also called a working capital deficit.

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A company can be endowed with Assets and Profitability but short

of liquidity if its assets cannot readily be converted into cash.

Positive working capital is required to ensure that a firm is able to continue

its operations and that it has sufficient funds to satisfy both maturing Short-
term debt and upcoming operational expenses.

The management of working capital involves managing inventories,

accounts receivable and payable, and cash.

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Working capital is the difference between the current assets and the current
liabilities.

The basic calculation of the working capital is done on the basis of the gross
current assets of the firm.

INPUTS

Current assets and current liabilities include three accounts which are of
special importance. These accounts represent the areas of the business where
managers have the most direct impact:

 Accounts receivable (current asset)

 Inventory (current assets), and
 Accounts payable (current liability)

The current portion of debt (payable within 12 months) is critical because it

represents a short-term claim to current assets and is often secured by long-
term assets.

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Common types of short-term debt are bank loans and lines of credit.

An increase in net working capital indicates that the business has either
increased current assets (that it has increased its receivables or other current
assets) or has decreased current liabilities—for example has paid off some
short-term creditors, or a combination of both.

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The working capital cycle (WCC) is the amount of time it takes to turn the
net current assets and current liabilities into cash.

The longer the cycle is, the longer a business is tying up capital in its
working capital without earning a return on it.

Therefore, companies strive to reduce their working capital cycle by

collecting receivables quicker or sometimes stretching accounts payable.

A positive working capital cycle balances incoming and outgoing payments

to minimize net working capital and maximize free cash flow.

For example, a company that pays its suppliers in 30 days but takes 60 days
to collect its receivables has a working capital cycle of 30 days. This 30-day
cycle usually needs to be funded through a bank operating line, and the
interest on this financing is a carrying cost that reduces the company's
profitability.

Growing businesses require cash, and being able to free up cash by

shortening the working capital cycle is the most inexpensive way to grow.

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Sophisticated buyers review closely a target's working capital cycle because

it provides them with an idea of the management's effectiveness at managing
their balance sheet and generating free cash flows.

As an absolute rule of funders, each of them wants to see a positive working

capital. Such situation gives them the possibility to think that your company
has more than enough current assets to cover financial obligations.

Though, the same can‘t be said about the negative working capital. A large
number of funders believe that businesses can‘t be sustainable with a
negative working capital, which is a wrong way of thinking. In order to run a
sustainable business with a negative working capital, it‘s essential to
understand some key components.

 Approach your suppliers and persuade them to let you purchase the
inventory on 1-2 month credit terms, but keep in mind that you must sell
the purchased goods, to consumers, for money.

 Effectively monitor your inventory management, make sure that it‘s often
refilled and with the help of your supplier, back up your warehouse.

Plus, big companies like McDonald‘s, Amazon, Dell, General Electric and
Wal-Mart are using negative working capital.

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1) Nature of business: generally working capital is higher in

manufacturing compared to service based organizations.
2) Volume of sales: higher the sale, higher the working capital required.
3) Seasonality: peak seasons for sales need more working capital.
4) Length of operating and cash cycle: longer the operating and cash
cycle, more is the requirement of working capital.

Volume of
Seasonality
Sales.

Length of
Nature of Operating
Business. and cash
FACTORS
EFFECTING
Cycle.
WORKING
CAPITAL

Figure: Factors Effecting Working Capital

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A) Matching Or Hedging Approach

B) Conservative Approach
C) Aggressive Approach

A) Matching or Hedging Approach: This approach matches assets and

liabilities to maturities. Basically, a company uses long term sources to
finance fixed assets and permanent current assets and short term financing to
finance temporary current assets.
Example: A fixed asset which is expected to provide cash flow for 5 years
should be financed by approx. 5 years long-term debts. Assuming the
company needs to have additional inventories for 2 months, it will then seek
short term 2 months bank credit to match it.
B) Conservative Approach: It is conservative because the company
prefers to have more cash on hand. That is why, fixed and part of current
assets are financed by long-term or permanent funds. As permanent or long-
term sources are more expensive, this leads to ―lower risk lower return‖.
C) Aggressive Approach: The Company wants to take high risk where
short term funds are used to a very high degree to finance current and even
fixed assets.

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Working capital can be categorized on basis of Concept (gross working

capital and net working capital) and basis of time (Permanent/ fixed WC and
temporary/variable WC).
The two major components of Working Capital are Current Assets and
Current Liabilities. One of the major aspects of an effective working capital
management is to have regular analysis of the company‘s currents assets and
liabilities.
This helps to take into account unforeseen events such as changes in the
market conditions and competitor activities. Furthermore, steps taken to
increase sales income and collecting accounts receivable also improves a
company‘s working capital.

For every business entity adequate amount of working capital is required to

run the operations. It needs to be seen that there is neither excess nor
shortage of working capital. Both excess as well as shortage of working
capital situations are bad for any business.
However, out of the two, inadequacy or shortage of working capital is more
dangerous from the point of view of the company operations.
Inadequate working capital has its disadvantages where the company is not
capable to pay off its short term liabilities in time, difficulty in exploring

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favorable market situations, day to day liquidity worsens and ROA and ROI
fall sharply.
On the other hand, one should keep in mind that excess of working capital
also leads to wrong indications like idle funds, poor ROI, unnecessary
purchase and accumulation of inventories over required level due to low rate
of return on investments, all of which leads to fall in the market value of
shares and credit worthiness of the company.

Working Capital Management (WCM) refers to all the strategies adopted by

the company to manage the relationship between its short term assets and
short term liabilities with the objective to ensure that it continues with its
operations and meet its debt obligations when they fall due.
In other words, it refers to all aspects of administration of current assets and
current liabilities. Efficient management of working capital is a fundamental
part of the overall corporate strategy.
The WC policies of different companies have an impact on the profitability,
liquidity and structural health of the organization. Although investing in
good long-term capital projects receives more emphasis than the day-to-day
work associated with managing working capital, companies that do not
handle this financial aspect (working capital) well will not attract the capital
necessary to fund those highly visible ventures; in other words, you must get
through the short run to get to the long run.

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Often the interrelationships among the working capital components create

real challenges for the financial managers. Inventory is purchased from
suppliers, sale of which generates accounts receivable and collected in cash
from customers to pay off those suppliers.
Working capital has to be managed because the firm cannot always control
how quickly the customers will buy, and once they have made purchases,
exactly when they will pay. That is why; controlling the ―cash-to-cash‖
cycle is paramount.
The different components of working capital management of any
organization are:
• Cash and Cash equivalents
• Inventory
• Debtors / accounts receivables
• Creditors / accounts payable

A) CASH AND CASH EQUIVALENTS

One of the most important working capital components to be managed by all
organizations is cash and cash equivalents. Cash management helps in
determining the optimal size of the firm‘s liquid asset balance.
It indicates the appropriate types and amounts of short-term investments
along with efficient ways of controlling collection and payout of cash. Good
cash management implies the co-relation between maintaining adequate

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liquidity with minimum cash in bank.

All companies strongly emphasize on cash management as it is the key to
maintain the firm‘s credit rating, minimize interest cost and avoid
insolvency.

B) MANAGEMENT OF INVENTORIES
Inventories include raw material, WIP (work in progress) and finished
goods. Where excessive stocks can place a heavy burden on the cash
resources of a business, insufficient stocks can result in reduced sales, delays
for customers etc. Inventory management involves the control of assets that
are produced to be sold in the normal course of business.

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FOR BETTER STOCK/INVENTORY CONTROL

 Regularly review the effectiveness of existing purchase and inventory
systems
 Keep a track of stocks for all major items of inventory
 Slow moving stock needs to be disposed as it becomes difficult to sell if
kept for long
 Outsourcing should also be a part of the strategy where part of the
production can be done through another manufacturer
 A close check needs to be kept on the security procedures as well

C) MANAGEMENT OF RECEIVABLES
Receivables contribute to a significant portion of the current assets. For
investments into receivables there are certain costs (opportunity cost and
time value) that any company has to bear, along with the risk of bad debts
associated to it. It is, therefore necessary to have a proper control and
management of receivables which helps in taking sound investment
decisions in debtors. Thereby, for effective receivables management one
needs to have control of the credits and make sure clear credit practices are a
part of the company policy, which is adopted by all others associated with
the organization. One has to be vigilant enough when accepting new
accounts, especially larger ones. Thereby, the principle lies in establishing
appropriate credit limits for every customer and stick to them.

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EFFECTIVELY MANAGING ACCOUNTS

RECEIVABLES
 Process and maintain records efficiently by regularly coordinating and
communicating with credit managers‘ and treasury in-charges
 Prepare performance measurement reports
 Control accuracy and security of accounts receivable records.
 Captive finance subsidiary can be used to centralize accounts receivable
functions and provide financing for company‘s sales

D) MANAGEMENT OF ACCOUNTS PAYABLE

Creditors are a vital part of effective cash management and have to be
managed carefully to enhance the cash position of the business. One has to
keep in mind that purchasing initiates cash outflows and an undefined
purchasing function can create liquidity problems for the company. The
trade credit terms are to be defined by companies as they vary across
industries and also among companies.

FACTORS TO CONSIDER
 Trade credit and the cost of alternative forms of short-term financing are
to be defined
 The disbursement float which is the amount paid but not credited to the
payers account needs to be controlled

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 Inventory management system should be in place

 Appropriate methods need to be adopted for customer-to-business
payment through e-commerce
 Company has to centralize the financial function with regards to the
number, size and location of vendors

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Every component of working capital (namely inventory, receivables and

payables) has two dimensions TIME and MONEY, in managing working
capital.
By making the money move faster around the cycle, one can reduce the
amount of money tied up. This helps the business generate more cash or it
will need to borrow less money to fund its working capital.
Consequently, it would either reduce the cost of interest or have free funds
to support additional sales growth or investments of the company. Similarly,
if one can negotiate on better terms with suppliers i.e. get an increased credit
limit or longer credit; it will effectively create additional cash to help fund
future sales.

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Working capital management has an important role to play in the success of

any business enterprise. Over 75% of companies that are running at loss or
struggling financially would be profitable and liquid if were more disposed
to the knowledge and practice of efficient working capital management.

The working capital management system helps in ensuring that tied down
capital that could otherwise be put to productive uses are released. Many
finance professionals and business experts often ignore the importance of
this management.

They usually do not go the extra mile in striving for optimum utilization of
resources tied to working capital just because they only look at the work
involved in carrying out proper working capital management exercise.

Working capital management is an effective management technique tool that

has the potential of guaranteeing long-term success. Indices such as: ‗cash
management‘, ‗accounts receivable management‘, ‗accounts payable
management‘, ‗marketable securities management‘, and ‗accruals
management‘, are crucial responsibilities of financial managers that require
constant supervision from the CFO (Chief Financial Officer).

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Funds released through sound working capital management practices act as

a cheap source of finance that can be used for expansion of existing projects
or for investment in new spheres of investment.

Increasing profitability is one of the main objectives of engaging in working

capital management.

One of the ways of increasing profitability through adequate working capital

management is in saving of financial cost that would have otherwise been
incurred but for managing short-term assets and liabilities.

Through stock management which is a component of working capital

management, a business is able to ensure that resources are sufficient at all
times. Optimal stock level, for instance, is determined using some models

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outside the scope of this article.

In business, it is very common to find a profitable company goes out of

business if it fails to meet up with the short-term financial needs of the
business. Businesses need to satisfy its short term and medium term
obligations in order to be in business and still remain competitive.

The overall operational excellence of a company would be greatly improved

by an effective working capital management system. Where this system is in
place, finances are managed in such a way that it poses no hindrance or
obstacle to any aspect of the entity.

Overtrading is one of the fastest ways to business failure. One main

characteristic of overtrading is mismatching assets and finances. The
business goes beyond set financial goals and objectives, and in the long run,
it meets with ruin. Some trends signaling overtrading will include
uncontrolled, out of proportion business expansion.

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Where a business engages in the proper management of its working capital

and other financial indices, Trade creditors and other non-trade creditors are
poised to continue doing business with it.

Their knowledge of the existence of this system goes a long way to boost
their confidence in the business and their dealings.

While we condemn overtrading and tag it as a negative impact on the

functionality of the business, we must also reiterate that under trading can
cost a business a fortune in an unearned profit. Through proper management
of working capital, a company can ensure that there are no idle resources.

Through working capitals ratios, analysts and financial experts can gain a
better understanding of a business. The working capital management affords
the business the opportunity of taking a closer look at all of its financial
indices.

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Management of working capital is essential in the allocation of resources. It

assists the business management incorrectly allocating the right resources to
appropriate quarters.

Applying the ratios revealed upon the utilization of the management system,
as well as all other necessary analysis, areas with surplus resources and the
shortage of resources are identified and followed swiftly with appropriate
even distribution of resources to all.

Managing working capital is synonymous with efficiently managing other

resources in the business. Other financial indices are considered such as the
ratios of turnover, the ration of the collection, the ration of key performance.

All of these can only be effectively achieved by a standard, efficient and

state of the art management of working capital.

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IMPROVES HELPS A
OVERALL COMPANY
EFFICIENCY OF AVOID
A COMPANY OVERTRADING
SOLIDIFIES THE MAINTAIN GOOD
GOING RELATION WITH
CONCERN SUPPLIERS AND
STATUS OF A OTHER
COMPANY CREDITORS

ENSURE THE AVOID

AVAILABILITY UNDERUTILIZATI
OF SUFFICIENT ON OF
RESOURCES RESOURCES:

PROVIDES
BETTER
INSIGHT INTO
INCREASED
THE TRUE
PROFITABILITY
FINANCIAL
STATE OF A
COMPANY:

Benefits
and Uses of
EXPANSION OF Working ALLOCATION OF
INVESTMENT
Capital RESOURCES
PORTFOLIO
Managemen
t

FIGURE: BENEFITS AND USES OF WORKING CAPITAL MANAGEMENT

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In case of a small-scale enterprise, the important factors determining the

requirements of working capital are as follows:

Among the various factors, size of the sales is one of the important factors in
determining the amount of working capital. In order to increase sales
volume, the enterprise needs to maintain its current assets.

In the course of period, the enterprise becomes in the position to keep a

steady ratio of its current assets to annual sales. As a result, the turnover
ratio, i.e., current assets to turnover increases reducing the length of
operating cycle.

Thus, less the operating cycle period, less will be requirements for working
capital and vice versa.

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Conversion of cash through various stages viz., raw material, semi-

processed goods, finished goods, sales, debtors and bills receivables into
cash takes a certain period of time that is known as ‗length of operating
cycle‘. Longer the operating cycle time, the more is the working capital
required.

For example, heavy engineering needs relatively more working capital than
a rice mill or cotton spinning mill or a steel rolling mill. Thus, it follows that
depending upon the length of working cycle, the requirement for working
capital varies from enterprise to enterprise.

The requirement of working capital also varies among the enterprises

depending upon the nature of the business. For instance, trading companies
require more working capital than manufacturing companies.

This is because that the trading business requires large quantities of goods to
be held in stock and also carry large amounts of working capital than
manufacturing concerns.

In both these types of businesses, the value of current assets is 80% to 90%
of the value of total assets. The investment in current assets is relatively

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smaller in the case of hotels and restaurants because they mostly have cash
sales, and only small amounts of debtors‘ balances.

Another important factor that determines the amount of working capital

requirements relates to the terms of credit allowed to the customers. For
instance, an enterprise may allow only 15 days credit, while another may
allow 90 days credit to its customers.

Besides, an enterprise may extend credit facilities to its all customers, while
another enterprise in the same business may extend credit only to select and
those too reliable customers only.

Then, the requirements for working capital will naturally be more if the
credit period is longer and credit facilities are extended to all customers, no
matter reliable or non-reliable they are.

This is because there will be longer balance of debtors and that too for a
relatively longer period which will obviously demand for more capital.

On the contrary, if supplies of raw materials are available on favorable

conditions or terms of credit i.e., the payment will be made after a relatively
longer period of time, the requirement for working capital will be
correspondingly smaller.

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The seasonal enterprises, i.e., the enterprise whose operations pick up

seasonally may require more working capital to meet their increased
operations during the particular season. A popular example of seasonal
enterprise may be sugar factory whose operations are highly seasonal.

If inventories are large in size but turnover is slow, the small-scale enterprise
will need more working capital. On the contrary, if inventories are small but
their turnover is quick, the enterprise will need a small amount of working
capital.

In case of labor intensive technology, the unit will need more amount to pay
the wages and, therefore, will require more working capital. On the other
hand, if the production technology is capital- intensive, the enterprise will
have to make less payment for expenses like wages. As a result, enterprise
will require less working capital.

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If the demand for and price of the products of small- scale enterprises are
subject to wide variations or fluctuations, the contingency provisions will
have to be made for meeting the fluctuations.

This will obviously increase the requirements for working capital of the
small enterprises. While one can add certain other factors to this list, the said
factors appear to be the major ones in determining the requirement of
working capital of a small-scale enterprise.

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The main factors affecting the working capital are as follows.

Nature of
Business
Scale of
Inflation.
Operations.

Level of
Business
Competitio
Cycle.
n

Growth Factors Affecting Seasonal

Prospects Working Capital. Factors.

Availability
Production
of Raw
Cycle.
Materials.

Operating Credit
Efficiency. Allowed.
Credit
Availed.

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1) The requirement of working capital

depends on the nature of business. The nature of business is usually of

two types: Manufacturing Business and Trading Business. In the case
of manufacturing business it takes a lot of time in converting raw
material into finished goods. Therefore, capital remains invested for a
long time in raw material, semi-finished goods and the stocking of the
finished goods. Consequently, more working capital is required. On the
contrary, in case of trading business the goods are sold immediately after
purchasing or sometimes the sale is affected even before the purchase
itself. Therefore, very little working capital is required. Moreover, in case
of service businesses, the working capital is almost nil since there is
nothing in stock.

2) There is a direct link between the

working capital and the scale of operations. In other words, more

working capital is required in case of big organizations while less
working capital is needed in case of small organizations.

3) The need for the working capital is affected by

various stages of the business cycle. During the boom period, the demand
of a product increases and sales also increase. Therefore, more working
capital is needed. On the contrary, during the period of depression, the
demand declines and it affects both the production and sales of goods.

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Therefore, in such a situation less working capital is required.

4) Some goods are demanded throughout the

year while others have seasonal demand. Goods which have uniform
demand the whole year their production and sale are continuous.
Consequently, such enterprises need little working capital. On the other
hand, some goods have seasonal demand but the same are produced
almost the whole year so that their supply is available readily when
demanded. Such enterprises have to maintain large stocks of raw material
and finished products and so they need large amount of working capital
for this purpose. Woolen mills are a good example of it.

5) Production cycle means the time involved in

converting raw material into finished product. The longer this period, the
more will be the time for which the capital remains blocked in raw
material and semi-manufactured products. Thus, more working capital
will be needed. On the contrary, where period of production cycle is
little, less working capital will be needed.

6) Those enterprises which sell goods on cash

payment basis need little working capital but those who provide credit
facilities to the customers need more working capital.

7) If raw material and other inputs are easily

available on credit, less working capital is needed. On the contrary, if

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these things are not available on credit then to make cash payment
quickly large amount of working capital will be needed.

8) Operating efficiency means efficiently

completing the various business operations. Operating efficiency of every

organization happens to be different. Some such examples are: (i)
converting raw material into finished goods at the earliest, (ii) selling the
finished goods quickly, and (iii) quickly getting payments from the
debtors. A company which has a better operating efficiency has to invest
less in stock and the debtors. Therefore, it requires less working capital,
while the case is different in respect of companies with less operating
efficiency.

9) Availability of raw

material also influences the amount of working capital. If the enterprise

makes use of such raw material which is available easily throughout the
year, then less working capital will be required, because there will be no
need to stock it in large quantity. On the contrary, if the enterprise makes
use of such raw material which is available only in some particular
months of the year whereas for continuous production it is needed all the
year round, then large quantity of it will be stocked. Under the
circumstances, more working capital will be required.

10) Growth means the development of the

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scale of business operations (production, sales, etc.). The organizations

which have sufficient possibilities of growth require more working
capital, while the case is different in respect of companies with less
growth prospects.

11) High level of competition increases

the need for more working capital. In order to face competition, more
stock is required for quick delivery and credit facility for a long period
has to be made available.

12) Inflation means rise in prices. In such a situation more

capital is required than before in order to maintain the previous scale of

production and sales. Therefore, with the increasing rate of inflation,
there is a corresponding increase in the working capital.

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IDEA CELLULAR
LIMITED
Idea Cellular is a pan-India integrated wireless broadband operator offering
2G, 3G and 4G services, and has its own NLD (National Long Distance) and
ILD (International Long Distance) operations, and ISP license.

Idea is one of the top three mobile operators in India, with an annual revenue
in excess of USD 5 billion and a revenue market share of 19 per cent. With
nearly 200 million subscribers, Idea ranks sixth in the global rankings of
operators in subscriber terms, for single country operations.

In line with the Government‘s vision of Digital India, Idea has accelerated
its efforts of building a digital economy.

Backed with a pan-India wireless broadband coverage, Idea forayed into

digital services with the launch of a suite of digital entertainment apps - Idea
Music, Idea Movies & TV and Idea Games.

With this, the company has begun its transformation from a pure play mobile
operator to an integrated digital services and solutions provider. Idea will
also expand its digital offerings into digital communication, digital

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payments, cloud and storage, digital information and many more.

Idea‘s pan-India network of over 2.7 lakh cell sites covers over 400,000
towns and villages. The company is further expanding network
infrastructure to make high speed mobile broadband services reach out to a
large population of the country.

Idea has been rapidly rolling out 4G network across the country, adding over
1 lakh broadband sites in the last two years, taking its broadband coverage to
over 1.2 lakh towns and villages across the country. Idea has also set up a
fibre network of over 1.5 lakh km.

Using the latest in technology, Idea provides world-class service delivery

through the most extensive network of customer touch points, comprising
Idea outlets, call centre, Digital app (My Idea App) and social media. Idea‘s
commitment to providing superior customer experience has been recognized
at various forums.

The leading market research firm Forrester in its ‗Customer Service Index
2016‘ has ranked Idea at No. 1 position in customer service and rated it as
―good‖ - the only wireless service provider to achieve this feat!

Idea has received several national and international recognitions for its path-
breaking innovations in mobile telephony products and services.

Idea won the prestigious Voice & Data Telecom Leadership Awards 2017
under Internet & Broadband Services, Marketing, Network Security, VAS &

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Apps and Business Process Innovation categories for various successful

initiatives and deployments in these areas.

Idea won the prestigious ET Telecom Award in 2017 for Best Enterprise
Mobility Solution. Idea was awarded the Golden Peacock Award for
Corporate Social Responsibility for being the best among the Indian
Telecom Companies for CSR.

Idea was recognized as the ‗Best Company of the Year 2015‘ at India
Business Leader Awards by CNBC and is listed among the Top 25
companies in the Business Today ‗Best Companies to Work For‘ Survey.

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Idea Cellular started its journey in 1995 as Birla Communications Limited

with GSM licenses in Gujarat and Maharashtra circles. In 1996 it changed its
name to Birla AT&T Communications Limited following the joint venture
between Grasim Industries and AT&T Corporation.

In 2001 it changed its name to Birla Tata AT&T as a joint venture

between Aditya Birla Group, Tata Group and AT&T Wireless. The company
named its brand Idea in 2002.

Following AT&T Wireless' merger with Cingular Wireless in 2004,

Cingular decided to sell its 32.9% stake in Idea. This stake was bought by
the remaining two stakeholders equally.

Tata forayed into the cellular market with its own subsidiary, Tata Indicom,
a CDMA-based mobile provider and in April 2006, Aditya Birla
Group announced the acquisition of the 48.18% stake held by Tata Group at
INR 40.51 a share amounting to INR 44.06 billion with 15% of the stake
acquired by Aditya Birla Nuvo and the remaining by Birla TMT holdings
Private Ltd, both AV Birla family owned companies.

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On 20 March 2017, Idea and Vodafone India announced that their respective
boards had approved a merger of the two companies. The merger will not
include Vodafone's 42% stake in Indus Towers Ltd.

The merger will create the largest telecom company in India by subscribers
and by revenue. Under the terms of the deal, the Vodafone Group will hold a
45.1% stake in the combined entity, the Aditya Birla Group will hold 26%
and the remaining shares will be held by the public.

The merger is expected to be completed by March 2019, and the newly

merged entity will be named Vodafone Idea Ltd.

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Idea competes with other major mobile operators including

Airtel,
Vodafone (pending the merger),
BSNL, and Reliance Jio.

Several smaller operators – Reliance Communications,

Aircel,
Telenor
Tata DoCoMo – with whom Idea competed are now in the process of
closing down their businesses.

While Idea competed very closely with operators like Reliance

Communications, BSNL, Tata, Aircel in circa 2006–07, as of 31 December
2015, Idea has gone far ahead of the rest of these competitors with a
Revenue Market Share of over 18.5% while the rest remain below 9%.

Over the last 3 years,[when?] Idea has cornered an incremental Revenue

Market Share of 33% giving tough competition to market leaders Airtel and
Vodafone by earning 1/3rd of the incremental market – way above its fair
share of the market.

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On 19 May 2010, in the 3G spectrum auction Idea paid ₹57.68

billion (US$860 million) for spectrum in 11 circles.

Idea launched its first 3G services in 2011. As of 31 Mar 2016, Idea Cellular
offers 3G services on its own spectrum in 13 telecom service areas—the
latest being Delhi (NCR) and Kolkata.

Idea has now launched its own 4G LTE services in over 350 towns across 10
telecom service areas including its leadership service areas like Maharashtra,
Kerala, MP&CG, AP&T, Punjab and Haryana.

It now provides 4G services in the service areas of Karnataka and Tamil

Nadu covering large metros and mini metros of Chennai and Bengaluru.

Idea strengthened its customer base after the launch of MNP in India. As per
information in the public domain, in 2016 Idea led the net port-ins and was
ahead of both Airtel and Vodafone in gaining from Mobile Number
Portability.

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The Indian wireless sector is one of the key pillars to bridge the gap between
‗India and Bharat‘, fulfil the Government vision of ‗Digital India‘, and to
transform the ‗Analog‘ life of 1.2 billion Indians into ‗Digital‘.

This transformation will not only impact the wireless industry but also
expected to have significant impact on the overall economy by influencing
the way in which various businesses are being conducted in present era.

This transformation require massive human efforts, large capital

commitments and support from the overnment in terms of availability of
spectrum and clear set of policies.

The sector is going through a phase where a large capex commitment is

required to expand the Broadband Network coverage, and mass adoption of
data services is expected to happen in near future.

These trends are similar to the trends seen before the voice demand picked
up. The large incumbent mobile operators are playing their role. After
committing huge payout for spectrum, incumbent operators are committing
large capex to aggressively expand the broadband network coverage across
the length and breadth of the country to ensure a larger part of the population
can experience the advantage of high speed internet.

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On the regulatory side, the government has cleared much awaited policies on
Spectrum Trading, Spectrum Sharing and Active Infrastructure sharing.

These policy decisions allow marginal operators to monetize their

underutilized spectrum and pave a way for efficient use of spectrum by the
industry. However, unreasonable spectrum price and regulatory changes like
‗Capping of Roaming Charges‘, ‗Reduction in IUC‘ etc adversely impacts
the industry.

Further, issues related to ‗Net Neutrality‘, ‗Change in spectrum usage

charges‘, ‗Quality of Service‘ etc. creates a regulatory overhang.

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On subscriber front, India, the second largest wireless market across globe,
continued its leadership position, in terms of new subscriber additions, for
the second consecutive year.

The Indian wireless Industry added 63.7 Mn subscriber during Financial

Year 2015-16, surpassing the net subscriber addition in world‘s largest
wireless market of China.

The total reported subscriber base crossed 1 Bn milestone during 2015-16

and stood at 1.03 Bn as of March 2016. The VLR subscriber addition during
Financial Year 2015-16 stands at 73.8 Mn, taking the VLR subscriber base
to 936.5 Mn as of March, 2016.

Subscriber penetration is still at around 73.7% based on VLR subscriber

base, against penetration of around 81.4% based on reported subscribers, far
below global average, indicating new subscriber growth will continue for
few more years.

Over a period of last five years (from FY 2011 to FY 2016), the Urban
subscriber base has increased from 538 Mn in FY 2011 to 589 Mn, an
addition of 51 Mn urban subscribers.

However, during the same period the rural subscriber base has expanded
exponentially, from 274 Mn to 445 Mn, capturing 77% of the incremental
subscribers added by the Industry.

Inspite that rapid expansion in rural subscriber base, the rural penetration is

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still at abysmally low level of 50.9% indicating the strong subscriber growth
potential from the rural market, strong hold of Idea Cellular.

On an overall basis for Idea 55.6% of the company EoP subscriber base of
175 Mn is from rural and deep hinter land markets, highest % across all
industry operators as per TRAI release.

The Indian wireless broadband industry (>512 kbps) subscriber

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base has increased to 132.8 Mn as of March, 2016, an addition of 49.1 Mn

subscribers in one year; reflecting a solid growth of 58.7%, key to future
revenue growth of the industry.

The wireless broadband subscriber penetration (of reported Industry overall

subscribers) improved from 8.6% as of March, 2015 to 12.8% as of March,
2016, at among the lowest wireless broadband penetration in the world.

With massive rollout of high speed broadband services on 3G and 4G,

falling entry prices for smartphone, affordable mobile data rates and range of
Digital Applications, Content and Services, India is on the cusp of a major
wireless broadband adoption cycle across demography of population.

The wireless internet penetration still remain low at 30.9% even post
addition of 63 Mn internet subscribers between December 2014 to
December 2015 (TRAI performance indicator report) Given a very low
fixed line penetration of 2.0% in India, internet adoption through wireless
remains the only option for the subscriber to experience the world of
internet.

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In February 2014 auction, your Company won 60.2 MHz spectrum in 1800
frequency band including 4G LTE compatible contiguous blocks of
5/10MHz in 8 service areas along with top-up GSM spectrum in 7 service
areas.

In March 2015 spectrum auction, your Company won 20.4 MHz spectrum in
1800 band including 4G LTE compatible contiguous blocks of 5MHz in 2
additional service areas, 4.8 MHz non-contiguous spectrum in HP (capable
of 4G LTE post DoT approval) along with top-up GSM spectrum in 3
service areas.

On December 23, 2015, Company took the historic giant leap in its telecom
journey with launch of its 4G LTE Services. Till March 31, 2016 your
Company has launched 4G services in 3,946 towns & villages in 10 service
areas of Maharashtra & Goa, Andhra Pradesh & Telangana, Madhya

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Pradesh & Chhattisgarh, Kerala, Haryana, Punjab, Karnataka, Orissa, NESA

and Tamil Nadu including Chennai, providing coverage to around 116
million Indians, representing 21% of population of these 10 service areas.

As of March 31, 2016, over 680,000 Idea customers are actively using its 4G
services. These 10 service areas represents ~61% of Idea‘s revenue and
~50% of national mobile industry revenue.

Your Company provides high speed wireless broadband 3G services in 21

service areas of India (except Orissa), including through Intra-Circle
Roaming (ICR) arrangements with other operators.

In the month of March, 2015, your Company launched its 3G services for
the Delhi metro service area on 900 MHz spectrum band (won in February,
2014 spectrum auction).

Further, in March, 2015 spectrum auction Your Company won 5 MHz

spectrum in 2100 MHz frequency band for Kolkata service area and
launched 3G services in the month of December, 2015.

The 3G foot-print of Idea‘s own 3G spectrum covering 13 service areas

accounts for over 79% of its revenue, ~74% of its subscribers and ~60% of
national mobile industry revenue.

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The high speed broadband offerings (3G and/or 4G) of your Company is
currently available in all 22 service areas (including service areas where 3G
service is provided based on ICR arrangements with other perators).

The number of 3G devices on Idea network has increased from 36.5 Mn as

of March 31, 2015 to 60.4 Mn as of March 31, 2016, a growth of 65.5%. Out
of this 60.4 Mn devices 11.1 devices are 4G ompatible.

The subscribers who are actively using data on 3G/4G platform and enjoying
high speed wireless broadband services reached to 23.6 Mn as of March,
2016, compared to 14.5 Mn subscribers as of March, 2015, a growth of
62.8%.

After successful acquisition of 4G spectrum in 10 service areas during last 2

spectrum auction and launch of 4G service in FY 2016, the overall wireless
broadband spectrum profile (3G or 4G) of your Company covers ~87% of its
revenue and ~79% of Industry revenue in 17 telecom circles.

The company now have ability to offer wireless broadband services on 3G

and/or 4G technology to nearly 880 million Indians.

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Your Company holds licenses for NLD, ILD and ISP services. Idea NLD
currently carries 98.4% of its captive NLD minutes. Your Company ILD
services now handle almost 100% of captive ILD outgoing minutes, besides
bringing large volume of incoming minutes from top international carriers
across the globe.

Company launched its ISP services in FY 2012 to cater to the captive

requirement of its mobile business, hich also offer ISP services to external
customers like small ISP and enterprise customers for their wholesale
Internet backhaul needs. Idea ISP currently handles all captive subscriber
traffic requirements.

Your Company is consistently investing in optical fibre cable (OFC)

transmission network to tap the future potential of wireless broadband and
currently has laid and energized over 115,500 km OFC, in comparison to
over 82,000 km two years back (Q4FY14).

In FY 2016, Your Company doubled its annual fibre rollout to 22,100 KM

against 11,400 KM in FY 2015, gearing itself to tap emerging wireless
broadband demand.

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Your Company has over 7,200 OFC PoPs (3G & 2G) in all service areas.
The fibre backhaul network of the Company optimally serves our 2G/ 3G/
NLD/ ILD/ ISP/Wireless Broadband needs.

Your Company has also introduced worlds‘ latest high capacity 100G
DWDM network technology to cater to rising data demand. Details with
reference to long distance business are as follows:

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Your Company has rolled out 4G network in 10 service area at breakneck

speed since the launch of latest 4G services at the end of Q3FY16. In little
over 3 months your Company has added 14,643 4G sites.

Apart from laying 4G network, your Company continues to expand its 2G

and 3G network aggressively during the year. It has added 14,466 2G sites
on its network, taking the 2G site count to 126,833 as on March 31, 2016.

On 3G front company added 19,769 3G cell sites in the 13 service areas

where it provides 3G services with its own spectrum, highest ever 3G cell
site addition since launch of 3G service in FY 2011.The company ended the
financial year with 50,060 3G sites.

Company has expanded its GSM coverage to 390,997 towns and villages as
of March, 2016 from 364,796 towns and villages as of March, 2015. The 2G
network of your Company covers nearly 82% of Indian Population (around
990 Mn Indians).

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Your Company along with its subsidiary Idea Cellular Infrastructure

Services Limited (ICISL), owns 9,744 towers as on March 31, 2016. There
are more than 16,100 tenants on these towers, resulting in tenancy ratio of
1.66.

During the last one year the company has added 187 towers and over 800
tenancies as its reorganize itself to improve its tower tenancy ratio to near
industry standards.

Further, your Company has completed transfer of its own towers to ICISL (a
wholly owned subsidiary) and all towers are under a single legal entity as of
August 1, 2016.

Besides these towers, your Company through its wholly owned subsidiary
Aditya Birla Telecom Limited (ABTL), holds 16% equity stake in Indus
Towers Limited (Indus).

Indus, a joint venture between Bharti Infratel, Vodafone India and Idea
Cellular (thru ABTL), is one of the world‘s leading tower company with

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119,881 towers and tenancy ratio of 2.25 as of March 31, 2016.

Providence Equity Partners, through its entity P5 Asia Holding Investments

(Mauritius) Limited, beneficially holds 1,925,000 compulsorily convertible
preference shares (CCPS), convertible into equity shares representing 30.3%
of the total equity share capital post conversion of these preference shares of
ABTL, which in turn reflects providence Equity Partners‘ beneficial equity
interest in Indus Towers of 4.85% as of March 31, 2016.

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The Mobile Number Portability (MNP) was implemented nation-wide on

20th January, 2011 and nearly 170.7 million customers have availed of the
MNP facility offered by Indian Mobile Industry.

Also government has introduced National MNP (NMNP) from July 03,
2015. The trends emerging from MNP and NMNP are clearly distinguishing
the strong operators in terms of customers‘ preference for better quality of
services and brand value.

Over the last 63 months in the MNP space, Your Company has maintained
leadership position on overall MNP Net Adds. As on March 31, 2016 Your
Company has a net MNP gain of 17.7 million customers from other telecom
operators with ‗one out of every four‘ existing mobile customers, who
chooses to port out from their existing mobile operator preferring to shift
and stay with world class Idea services.

Your Company's success on the MNP front clearly demonstrate the success
of your Company's ‗Customer Centricity‘ program and re-affirms your
Company strength of its seamless network coverage, low call drop rate,

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better voice & mobile data quality, advanced and precise billing systems on
pre-paid and postpaid, customer responsive call centers and innovative/
competitive product offerings.

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Your Company remain focused on Revenue Market Share (RMS) and

Incremental Revenue Market Share (IRMS). While the former reflect the
positioning of the company in the league tables, later reflects the current
market power of the company.

Your Company has improved its Revenue Market Share by around 1.4% to
18.9% for financial year 2015-16 from 17.5% in financial year 2014-15.

Your Company gained incremental market share of 44% in financial year

2015-16. Your Company is a clear number 2 as per incremental revenue
market share based on data for last four years.

Your Company is the sixth largest mobile telecommunications company

(counted on operations in a single country) in the world based on number of
subscribers (GSMA Intelligence, as of December, 2015) servicing about 184
Mn active subscribers on VLR as of March 31, 2016.

Your Company has always been vigilant in monitoring the quality of its
subscriber base. The data released by the TRAI for active subscribers (VLR
subscribers) as of March 31, 2016, reaffirms quality of Company‘s
subscriber base as among the best in terms of percentage of active

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subscribers. As of March 2016, Your Company has 105.0% of reported

subscribers as VLR subscribers, which is highest in the industry.

The End of Period (EoP) subscriber market share (on VLR) as on March,
2016 stands at 19.6%, as against a reported subscriber markets share of
16.9%. Your Company has improved its VLR subscriber market share by
0.9%, compared to March 2015.

During the Financial Year 2015-16, on an incremental basis your Company

has added 22.5 Mn subscriber against overall industry VLR subscriber
addition of 73.8 Mn, gaining incremental VLR subscriber market hare of
30.5%. Today, nearly 1 out of 3 Indian who buy new connection, prefer to
join network of your Company.

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FOLLOWING ARE THE MAIN OBJECTIVE TO STUDY ABOUT

THE CUSTOMER SATISFACTION ON IDEA.

 To study telecommunication industry.

 To study the company profile of Idea.

 To study customer satisfaction of Idea.

 To study various Marketing activities provided by Idea.

 To study the various services provided by Idea.

 To know the expectation of Idea Customers.

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Following are the scope of the study about the customer satisfaction on

Idea.

 This study will help company to know about the awareness level of

Idea in Gorakhpur city.

 This study will help company while making new strategies for the

customer of Gorakhpur.

 This Study will help company to know about the problem faced by

customers.

 This Study will help company to know about the customer satisfaction

in Gorakhpur city.

 To study the various services provided by Idea.

 To know the expectation of Idea Customers.

There are many benefits related to take this study. Some of the benefits of

taking this study are as follows:

 By analyzing this information, the company would be able to better

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design schemes & services & target right prospects‘ needs & wants.

 More people will get aware about Idea that will increase profit level of

Idea.

 This study helps to identify the behavior of consumer when there are

no offers & schemes from Idea.

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―Marketing training means the systematic gathering, recording, analyzing of

data about problems relating to the marketing of goods and services‖

Marketing training has proved an essential tool to make all the need of

marketing management. Marketing training therefore is the scientific process

of gathering and analyzing of marketing information to meet the needs of

marketing management. But gathering of observation is must be systematic.

The systematic conduct of training requires:

 Orderliness, in which the measurements are accurate.

 Impartiality in analysis and interpretation.

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All of training can be categorized into basic and applied.

Basic Training is that intended to expand the body of knowledge for the use

of others.

Applied Training is one, which is carried out to find the solution for a

particular problem or for guiding a specific decision. It is usually private in

nature.

My training on Idea is carried on for guiding specific decisions and its

results are useful only to Idea for taking particular decision regarding

product quality, staff and security. Hence the nature of my training study is

―APPLIED TRAINING ―.

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The marketing training is done in systematic process. The Traininger has

pursued the below process of marketing for my study at Idea:

Problem
Identification

Training Design

Process of
Marketing
Training

Training Report
Data Collection
& Presentation

Data Analysis &

Interpretation

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The first and the most important step of marketing training is properly

defining the problem. In order to identify the training problem two

categories of problem should be carefully noticed.

 A number of customers are not satisfied with services, new schemes and

offers.

 A number of customers are not satisfied with the network coverage.

 A number of customers are not satisfied with the current call rates of

Idea.

 A number of customers are not satisfied with the Free SMS schemes.

 A number of customers are not satisfied with the service of customer care

of Idea.

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Training design indicates the methods and procedure of conducting training

study. Training design can be done in following three types:-

1.

Exploratory training focuses on the discovery of new ideas and is generally

based on secondary data.

2.

Descriptive training is undertaken when the training want to know the

characteristics of certain groups.

3.

An experimental training is undertaken to identify causes and effect

relationship between two variables.

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SOURCES OF DATA COLLECTION:

Basically there are two types of data i.e. secondary and primary:

PRIMARY DATA COLLECTION:

Primary data collection contains the following four types of methods-

Observation Method:

It contains Causal observation, Systematic observation, direct observation

and contrived observation.

Survey Method:

It contains Personal Interview, Telephone Interview and Mail Interview.

Experimental Method.

Panel Method.

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SECONDARY DATA COLLECTION:

It can be collected from internal as well as external sources

INTERNAL SOURCE

Various internal sources like employee, books, sales activity, stock

availability, product cost, etc.

EXTERNAL SOURCES

Libraries, trade publications, literatures, etc are some important sources of

external data.

The Traininger has used primary data for the core purpose of the project and

this primary data has been gathered by survey method. The traininger has

also used secondary data

DATA COLLECTION TOOLS:

To conduct a survey, the Traininger has selected a structured questionnaire

as an instruction for gathering valuable information from the customers.

Questionnaire, which is used for the survey, is consisting of questions and

checklist questions to check the customer feedback.

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SAMPLING PLAN:

The traininger has design a sampling plan that is consist of five decisions.

Sampling unit:

Who is to be surveyed?

The Traininger has selected youngsters, businessmen, and housewives,

employees to conduct survey and to measure satisfaction level.

Sampling types:

There are two types of sampling i.e. Probability Sampling and Non –

probability Sampling.

Probability Sampling :

Probability sampling means each unit of the universe has equal chance of

getting selected. The most frequently used probability sampling methods are

as below:

a) Simple Random Sampling.

b) Stratified Random Sampling.

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c) Multi-stage Random Sampling.

d) Cluster Sampling.

e) Multi – phase Sampling.

f) Replicated Sampling.

Non – Probability Sampling:

Non – Probability sampling contains following methods:-

a) Judgment Sampling.

b) Convenience Sampling.

c) Panel Sampling.

d) Quota Sampling

For this purpose the traininger has used non probability convenience

sampling.

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Sample Size:

Sample size means limited numbers of respondents covered under the

training study from a population and the training has taken a survey of 100

respondents to know the satisfaction level of customer.

Sampling Area:

The traininger‘s area for survey was:

 Reti chowk, nakhas chowk, bank road.

 Idea Store, Golghar.

 Outside Big Bazaar, GKP.

Sampling Unit:
100 respondents

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Question (1) What is Your Age?

Age Group Percentage

25-35 20
36-45 29
46-60 36
Above 60 Years 15

Percentage
40
35
30
25 25-35

20 36-45

15 46-60

10 Above 60 Years

5
0
25-35 36-45 46-60 Above 60 Years

Interpretation:

According to above survey I found that, 20% respondents are from 25--35 year age,

29% respondent were from 36--45 years age, 36% are from 46--60 year age, and

15% respondents are above 60 years of Age

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Question (2) What is Your Profession?

Profession Percentage
Driver 16
Businessman 22
Serviceman 35
Students 27

Percentage
Students

Serviceman

Businessman

Driver

0 5 10 15 20 25 30 35 40

Driver Businessman Serviceman Students

Interpretation:

According to above survey I found that, 16% respondents are Drivers, 22%

respondents were Businessman, 35% are Serviceman, and 27% respondents are

Students.

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Question (3) Gender?

Respondent Percentage
Male 60
Female 40

Percentage
Male Female

40%

60%

Interpretation:

According to above survey I found that, 60% respondents are Male, 40% respondents

were Female,

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Question (4) What is your Educational Qualification?

Education Percentage
High-School 10
Intermediate 20
Graduate 36
Post-Graduate 22
Other Qualification 12

Percentage
40
35
30
25
20 High-School
15 Intermediate
10
5 Graduate
0 Post-Graduate
Other Qualification

Interpretation:

According to above survey I found that, 10% respondents are High-School Passed,

20% respondents were Intermediate Pass, 36% are Graduate, and 22% respondents

are Post-Graduate, and 12% are having other Qualification.

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Question (5) What is your Annual Income?

Income Percentage
10000 to 25000 19
25000 to 50000 24
50000 to 100000 26
Above 2 Lakhs 31

Percentage

Above 2 Lakhs

50000 to 100000

25000 to 50000

10000 to 25000

0 5 10 15 20 25 30 35

10000 to 25000 25000 to 50000 50000 to 100000 Above 2 Lakhs

Interpretation:

According to above survey I found that, 19% respondents annual income is between

10000-to-25000 Rs., 24% respondent are between 25000-to-50000 Rs, 26% are

between 50000-to-100000 Rs, and 31% respondents were above 2 Lakhs Rs.

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Question (6) Why you have Purchased IDEA Product?

Reason of Purchase Percentage

Self-use 55
Commercial Use 45

Percentage

Comparison with Other

Brand
Product Specification

Interpretation:

According to above survey I found that, 55% respondents purchased Airtel Product for

Self-Use, 45% respondent purchased for Commercial Use,

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Question (7) Which Company SIM you have Purchased?

Company Name Percentage

Telenor 14
Reliance GIO 19
BSNL 22
IDEA 25
Vodafone 20

Percentage

Vodafone

Telenor
IDEA
Reliance GIO
BSNL BSNL
IDEA
Reliance GIO
Vodafone
Telenor

0 5 10 15 20 25

Interpretation:

According to above survey I found that, 14% respondents have Purchased Sim from

Telenor Company, 19% respondents from Reliance Gio Company, 22% from BSNL,

and 25% respondents from IDEA Company, and 20% are having Sim of Vodafone
Company.

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Question (8) Are you Satisfied with the SIM You have purchased?

Respondent Percentage
Yes 68
No 32

Percentage
Yes No

32%

68%

Interpretation:

According to above survey I found that, 68% respondents are satisfied with the SIM

they have purchased, and 32% respondents were not Satisfied with their SIM.

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Question (9) How you were motivated to purchase the Products?

Respondent Percentage
Advertisement 38
Through Friends 36
Dealer Meeting 26

Percentage
40
35
30
25
Advertisement
20
Through Friends
15
Dealer Meeting
10
5
0
Advertisement Through Friends Dealer Meeting

Interpretation:

According to above survey I found that, 38% respondents were motivated to purchased

2 Wheeler from the company because of Advertisement, 36% respondent were

motivated through friends and, 26% purchased because of participating in Dealer

Meeting.

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Question (10) Which Mode of Advertisement you were Motivated?

Mode Of Advertisement Percentage

TV Channels 33
Hoardings 15
Newspaper and Magazine 30
Advertisement program held by Dealers 22

Percentage
Advertisement program held
by Dealers
TV Channels

Newspaper and Magazine Hoardings

Hoardings Newspaper and Magazine

Advertisement program held

TV Channels by Dealers

0 10 20 30 40

Interpretation

According to above survey I found that, 38% respondents were motivated to purchased

Product from the company because of Advertisement, 36% respondent were motivated

through friends and, 26% purchased because of participating in Dealer Meeting.

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Question (11) Does Advertisement plays an important role in Purchasing any

Company Product?

Respondent Percentage
Yes 68
No 32

Percentage
Yes No

32%

68%

Interpretation:

According to above survey I found that, 68% respondents were agreed that

advertisement plays an important role in Purchasing any Product and, 32% respondents
were not having thoughts.

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Question (12) Type of Advertisement which help you move in your Decision?

Types of Advertisement Percentage

Comparison with Other Brand 25
Product Specification 15
Brand Ambassador 35
Schemes Offered 25

Percentage
35
30
25
20
15 Comparison with Other Brand
10
5 Product Specification
0
Brand Ambassador
Schemes Offered

Interpretation

According to above survey I found that, 25% respondents are affected to purchase

Products from the company because of Comparison with other Brand, 15% respondent

were affected through Product Specification and, 35% were motivated because of

Brand Ambassador and, 25% were motivated by different Schemes Offered by Dealers.

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Question (13) Do you find your Product as per Advertisement?

Respondent Percentage
Yes 65
No 35

Percentage
Yes No

35%

65%

Interpretation:

According to above survey I found that, 65% respondents were agreed that their Product

is according to the Advertisement given and, 35% respondents were not having Such
thoughts.

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ACCORDING TO ABOVE SURVEY I FOUND THAT

20% respondents are from 25--35 year age, 29% respondent were

from 36--45 years age, 36% are from 46--60 year age, and 15%

respondents are above 60 years of Age.

16% respondents are Drivers, 22% respondents were Businessman,

35% are Serviceman, and 27% respondents are Students.

60% respondents are Male, 30% respondents were Female, 10%

are Others.

10% respondents are High-School Passed, 20% respondents were

Intermediate Pass, 36% are Graduate, and 22% respondents are

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Post-Graduate, and 12% are having other Qualification.

19% respondents annual income is between 10000-to-25000 Rs.,

24% respondent are between 25000-to-50000 Rs, 26% are between

50000-to-100000 Rs, and 31% respondents were above 2 Lakhs Rs.

55% respondents purchased Idea Product for Self-Use, 45%

respondent purchased for Commercial Use,

14% respondents have Purchased Sim from Telenor Company, 19%

respondents from Reliance Gio Company, 22% from BSNL, and

25% respondents from IDEA Company, and 20% are having Sim of

Vodafone Company.

68% respondents are satisfied with the SIM they have purchased, and

32% respondents were not Satisfied with their SIM.

38% respondents were motivated to purchased Product from the

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company because of Advertisement, 36% respondent were motivated

through friends and, 26% purchased because of participating in Dealer

Meeting.

68% respondents were agreed that advertisement plays an important

role in Purchasing any Product and, 32% respondents were not having

thoughts.

25% respondents are affected to purchase Products from the company

because of Comparison with other Brand, 15% respondent were

affected through Vehicle Specification and, 35% were motivated

because of Brand Ambassador and, 25% were motivated by different

Schemes Offered by Dealers.

65% respondents were agreed that their Product is according to the

Advertisement given and, 35% respondents were not having Such

thoughts.

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The project has been successfully completed with certain inherent

limitations, which are as follows: ·

This Project report is based on the secondary sources for data

collection and no Primary data has been used, due to which there is

lack of practical knowledge. ·

Time and work constraints were also there. ·

Limited information & Respondent’s unavailability. ·

Time pressure and fatigue on the part of respondents and

interviewer. ·

Courtesy bias& the behavior of the customer while approaching

them to fill the questionnaire was unpredictable.·

Lack of customer’s cooperation was a major constraint. ·

Majority of the customer were too aggressive in nature.

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 IDEA is a very successful brand in India & providing customer

satisfaction is to be there main motive.

 Provides Internet access on the move as people are more dependent

on it in their daily lives like wide network and good 3G services.

 Providing customer satisfaction is the most crucial step of the

company as they are to be satisfied and provides Internet access on

the move such as Wide network and good 3G services as they are

important and technology advanced stuff required by almost

everybody in today’s environment, IDEA is a home brand and a very

successful brand in India and overseas and one of the most

successful brands still to date.

 It possesses congestion free & wide network, unique value added &

customer services to cover one of the widest areas.

 From the details it can be concluded that 70% of IDEA users

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preferred to remain with IDEA.

 Also good number of users who were willing to switch from their

respective subscribers showed interest in IDEA.

 Hence, these statistics imply a bright future for the company. Also the

company is used mainly by executives who want wide coverage for

their operations but the problem of customer satisfaction still

persists with the company and cause of its lacking new customers.

 Connectivity is the backbone of the company and it is still the reason

why consumers use it and the most users of the company fall in the

youth category and are now using postpaid services as they are

aware of the services provided as the youth is the main target of

major of companies as the country mainly comprises of them.

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BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem

in details the following Books, Magazines/Journals and Web Sites have

been referred.

All the material detailed below provides effective help and a guiding

layout while designing this text report.

BOOKS

 C.R Kothari (2004): Research Methodology Methods & Techniques‟,

New Age International

 Publishers, New Delhi, 2nd Edition.

 Richard I. Levin, David S. Rubin (2004): „Statistics for Management‟,

Prentice Hall of India

 Private Limited, New Delhi, 7th Edition.

 Principles of Marketing –Philip Kotler & Kevin keller edition 12

 Market Research – D.D. Sharma

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WEBSITES

www.wikipedia.com

www.ideaworld.com

http://www.idea.in/

http://managementhelp.org/customer/satisfy.htm

http://airtelbroadband.in/wps/wcm/connect/idea.in/idea.in/Home

http://www.customersatisfaction.com/

http://www.markosweb.com/www/idea.in/

http://www.1000ventures.com/business_guide/crosscuttings/custo

mer_satisfaction.html

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APPENDIX
Question (1) What is Your Age?

Age Group Percentage

25-35
36-45
46-60
Above 60 Years

Question (2) What is Your Profession?

Profession Percentage
Driver
Businessman
Serviceman
Students

Question (3) Gender?

Respondent Percentage
Male
Female

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Question (4) What is your Educational Qualification?

Education Percentage
High-School
Intermediate
Graduate
Post-Graduate
Other Qualification

Question (5) What is your Annual Income?

Income Percentage
10000 to 25000
25000 to 50000
50000 to 100000
Above 2 Lakhs

Question (6) Why you have Purchased Idea Product?

Reason of Purchase Percentage

Self-use
Commercial Use

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Question (7) Which Company SIM you have Purchased?

Company Name Percentage

Telenor
Reliance GIO
BSNL
IDEA
Vodafone

Question (8) Are you Satisfied with the SIM You have purchased?

Respondent Percentage
Yes
No

Question (9) How you were motivated to purchase the Products?

Respondent Percentage
Advertisement
Through Friends
Dealer Meeting

Question (10) Which Mode of Advertisement you were Motivated?

Mode Of Advertisement Percentage

TV Channels
Hoardings
Newspaper and Magazine
Advertisement program held by Dealers

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Question (11) Does Advertisement plays an important role in Purchasing any

Company Product?

Respondent Percentage
Yes
No

Question (12) Type of Advertisement which help you move in your Decision?

Types of Advertisement Percentage

Comparison with Other Brand
Product Specification
Brand Ambassador
Schemes Offered

Question (13) Do you find your Product as per Advertisement?

Respondent Percentage
Yes
No

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