DEPARTMENT OF MANAGEMENT STUDIES

ROYAL COLLEGE OF TECHNOLOGY, INDORE

Major Research Project Report On

(MARKET POTENTIAL OF 3G SERVICES IN INDORE CITY)

Submitted for the Partial Fulfillment of the Requirements of the Degree of Master of Business Administration (Full Time) Session (2009-11)

Guided By:
MR.PUSHYAMITRA JOSHI

Submitted By:
ANEET RATHAUR MBA (MARKETING/FIN.) ROLL NO. - 09175007

Faculty,

CERTIFICATE

This

is

to

certify

that

ANEET

RATHAUR

student

of

M.B.A.

(MARKETING/FINANCE) fourth semester from ROYAL COLLEGE OF TECHNOLOGY, INDORE has successfully completed the Major Research Project titled as MARKET POTENTIAL OF 3G SERVICES IN INDORE CITYduring the course of his/ her study and has submitted the project report towards partial fulfillments of the degree of Master of Business Administration of DAVV, Indore.

MR. ANIRUDH ARYA HEAD Department of Management Studies

CERTIFICATE

This is to certify that ANEET RATHAUR, student of M.B.A. MARKETING/FINANCE fourth semester from ROYAL COLLEGE OF TECHNOLOGY, INDORE has successfully completed the major research project titled as MARKET POTENTIAL OF 3G SERVICES IN INDORE CITY during the course of his study and has submitted the project report towards partial fulfillments of the degree of Master of Business Administration of Devi Ahilya Vishwa Vidhyalaya, Indore.

INTERNAL EXAMINER

EXTERNAL EXAMINER

ACKNOWLEDGEMENT

I would like to convey my sincere gratefulness to all those who gave me the opportunity to complete this project. I acknowledge the huge importance of this research and especially of this project undertaken. At the outset I would take the opportunity to express my sincere thanks to Dr. Ravishankar Kamath, for providing me the opportunity to undertake and accomplish this research work. Im highly obliged to MR.PUSHYAMITRA JOSHI for his untiring help, valuable guidance and kind supervision which were the main stream to bring this work in present shape. I wish to thank her for her constant guidance and support in the successful completion of this research work. I shall be failing in my duty if I do not express my sincere gratitude to my family and friends for their moral support and encouragement throughout the study. Without the co-operation of the above personnel, it would not have been possible for me to understand the dynamics of the research work. Their help and support can be defined as an inspiration and morale booster that guided me all along the course of my research.

ANEET RATHAUR
MBA (Full Time)

DECLARATION

I, declare that the Major Research project entitled MARKET POTENTIAL OF 3G SERVICES IN INDORE CITY is my own research work conducted under the guidance of MR.PUSHYAMITRA JOSHI ROYAL COLLEGE OF TECHNOLOGY, INDORE
ANEET RATHAUR

INTRODUCTION 3G services
The 3G services are the one which are of faster speed and at time they are used to carry and transfer information and data packets from one point to the other point. The 3 G services provide people with the help of the 3G networking systems. The 3 G services are mainly provided by the broadband networks which enable the information to be utilized at a higher rate. On the other hand the 3G services along with its network is providing people with GPRS, WAP and EDGE services which makes sure that the internet can be used at any time on the mobiles or on some other device, The EG services are found to be very much faster and reliable as compared to the other services such as the 2G. These services had been designed so that the customers can be satisfied easily and the trend in the demand of the consumers can be known and the target market needs and wants can be met too. The 3G services is being used by many people and they are providing people with some new services as well. The major services that are provided to the people are the internet services on the mobile TV, the weather updates, news updates and at time the video conferencing feature can also be used by the people who possess 3 G services. This research study focuses on the 3G market in indore. It covers the market estimates with respect to 3G subscriber base and revenue forecasts. It also discusses the 3G and BWA auction results in detail. The 3G Auction results operator wise are elaborated and their strategic roadmaps are discussed. An analysis of the Political, Economic, Social, Regulatory, and Technology Factors have been done with respect to the future potential of 3G in India. The drivers, restraints and challenges of the 3G market are also dealt with. International Case studies are discussed. A Scenario Analysis is also done with respect to 3G deployment. 3G Technologies Poised to Transform the Mobile Ecosystem in India The 2G market in India is one of the fastest-growing mobile services markets in the world in terms of subscriber growth. India reached the next stage in its progress towards advanced telecommunications technologies with the completion of the 3G spectrum auctions in May 2010, after more than a year of delay. Out of the nine bidders, six private companies have won the 22

different circles. With no private company winning a PAN-India license, the market is potential will be determined by the strategies likely to be adopted by the telecom service providers (TSPs). 3G services are likely to be launched primarily in the urban regions, where consumers have shown a higher preference for data services and have better affordability, notes the analyst of this research service. Recently, the prices of the 3G-enabled handsets have started declining, and this is expected to accelerate 3G adoption in the Indian market. The tariff levels in India are among the lowest in the world, and this is the primary reason for the wide adoption of mobile services in the country. The mobile penetration rate is expected to reach 97 percent by 2015, with the rural population expected to adopt mobile services. Innovative 3G applications and services targeted at different customer segments are expected to drive the revenues of the TSPs from 3G services. Elite subscribers in the high-spending tech savvy segment are likely to shift from 2G to 3G services and drive a higher growth with uptake of data-intensive applications. The growing popularity of mobile entertainment is a significant growth factor as access to mobile games and video-based content would need high speed. This would result in increased adoption of 3G services. Building Awareness Vital for Deeper Market Penetration of the Technology The average revenue per user (ARPU) for 3G services will be low in the initial stage. Security concerns raised by the Government on the telecom equipment imported into India have affected TSPs' network expansion and 3G rollout plans, says the analyst. However, the recent lift of the ban on importing equipment from Chinese vendors is likely to improve this situation. On the radar of telecom companies, rural India features strongly as the future growth market due to saturation in the urban markets. Financial inclusion and Internet adoption would be an opportunity for rural penetration. Success of 3G in India depends on factors such as availability of 3G handsets at affordable prices, attractive pricing schemes to suit the needs of Indian consumers, and innovation and localization of mobile content. Telecom service providers would need to deploy innovative 3G applications and build a comprehensive value proposition to target consumers.

Moreover the speed of 3G network is quite more than the dial up internet connection. A certain page which cant be opened on the dial up connection can be easily opened with little time with the help of the 3 G network. The costs of the 3G services are more as compared to the other services. This is due to the fact that it is providing people with some more benefits.

Companies who provide 3G services

India is vastly populated country and people, here are well aware with IT technologies especially used in mobiles like 3G services and well aware about different service providing companies like Tata Docomo 3G, etc. There are many other companies that offer their services in this field and have competitive tariff plans that attract people towards them. Reliance, Tata and BSNL are major telecom providing companies in India and all try to attract a new user towards them. The latest techno logy in mobile telecom is 3G service, and almost all companies try to overcome each other. Lets have a look on a comparison of Tata 3G, Reliance 3G and BSNL 3G tariff plans.

The competition between these companies actually gives the benefit to their users in the form of cheap Tariff plans. In a research, the SIM card was started to sell near $2, and now it becomes lower than $0.5. The entrance of new telecom companies makes a competition. The Tata Docomo 3G tariff plans are very attractive for users, as it provides the facility of video call at only 5p/sec. The 3G plan for prepaid user ranges from Rs. 350 and it is valid for 30 days. The

minimum 3G plan for postpaid users starts from Rs. 500. The company offers many other packages like 2000/month and you can call for 5000 minutes, use 3G services whole month and download data up to 2 GB. Company offers some unlimited packages also in which user can download data up to 15GB for just Rs. 2000 per month.

Reliance 3G tariff plans offer different rate plans for its customers. The 3G plan starts from 100 rupee while it is a postpaid user or prepaid user. In the default 3G plan for customer, company offer 10p/ 10kb and maximum up to 50 MB usage and call, SMS charges are according to general Reliance tariff plan. This general plan is in the form of 2G tariff.

BSNL 3G tariff plan offers some separate services in its tariff plan. This service included as call just for 30 paisa/ min and video calls for just 50 paisa/ min. The lowest 3G plan starts with 120 rupee only. First customer has to buy a prepaid connection for just rupee 59. Then he has to recharge it 120 rupee to get 3G services as this is the lowest plan in

Bharat Sanchar Nigam Ltd (BSNL) launched its 3G GSM mobile and High Speed Wireless Internet services (3G Data services) in Indore, Bhopal, Chhindwara, Parasia, Sausar, Junnardeo, Damua and Sehore city in Madhya Pradesh Telecom circle. Speaking on the launch of 3G services in Madhya Pradesh, Ganesh Chandra Pandey GM, BSNL Bhopal, said 3G Mobile and High Speed Data Services now available for postpaid and prepaid customers in 9 Cities and BSNL will launch 3G services in all major cities and towns including all District headquarters across Madhya Pradesh by September. Riding on 3G, BSNL gives several options including High Speed Internet access with faster data downloading speed up to 3.6 Mbps, video calls and also subscribers can enjoy Live Mobile TV & VoIP services on 3G Compatible mobile phone.

Idea Cellular on 28th March 2011 launched 3G services on its network in Madhya Pradesh & Chhattisgarh, Gujarat and Himachal Pradesh. To anchor the occasion, Idea unveiled a new 3G logo. The new branding will be implemented throughout India, across all customer touch points. Idea has set up Experience Kiosks to provide a flavour of the services that customers can opt for. These will be available to all users at select My Idea stores. Local, STD and Roaming Video Calls cost will be 5 paisa/sec. On the occasion of the 3G launch, Himanshu Kapania, Deputy Managing Director, Idea Cellular said: 3G services will mark the beginning of the next phase of Indias telecom growth story and bring the sector on par with the most advanced telecom markets in the world. Beginning today, Idea subscribers will be the first in India to experience the Gold Standard in 3G services. Currently, 10% of Ideas over 86 million subscribers are said to be using 3G enabled handsets. It is expected that these users will be the early adopters of 3G services. During 3G Spectrum Auctions on May 2010 Idea Cellular secured license for 10 telecom circles Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Kerala Maharasthra & Goa, Madhya Pradesh & Chattisgarh, Punjab, Uttar Pradesh East & Uttar Pradesh West & Uttarakhand.

Beginning with MP, Chhattisgarh, Gujarat and HP, Ideas 3G services will be available in 200 towns by 15 April 11, progressively growing at the rate of 10 towns per day to cover 750 towns by mid 2011, and 4,000 towns by the end of FY12. Idea will target areas of industrial and commercial activity, centres of learning, and high potential rural hinterlands where broadband is yet to make a breakthrough. Idea has set up the most extensive customer service network to educate customers on 3G and support their requirements, across the country.

Type of 3G services
Prepaid 3G : BSNL 2G Prepaid customers of MP circle can migrate to 3G by recharging with a Special tariff Voucher (STV) of Rs.21 or just send SMS, ACT 3G to 53733 following which Rs.21 will deducted from their balance and they will be migrated to 3G for a period of 30 days. These migrated customers can experience Video Calling, High Speed Internet, Mobile TV etc at 3G charges while retaining their 2G Voice Plan. Prepaid subscriber also allow to migrate in 3G Plan120 by sending SMS M3G120 to 53733 . Postpaid 3G : BSNL 2G Postpaid customers in Madhya Pradesh have to pay additional Rs.25 only per month to avail 3G services over and above their 2G services. The existing 2G Postpaid customers can also send SMS, ACT 3G to 53733. They can also approach customer service centers to subscribe 3G services. 3G Data Card : BSNL also offers high-speed mobile Internet access for PCs and Laptops through the USB Data card subscription which comes with free all India roaming including Mumbai & Delhi. Convenient 3G data plans ranging from Rs.249 to Rs.2499 are available with both Postpaid & Prepaid options.To give the customers firsthand experience of 3G, Trial Packs have also been launched. As an introductory offer, local and national video calls from home LSA will be charged @30p/min.

Idea Cellular, Indias 3rd Largest mobile operator has announced the launch of its Gold Standard 3G services that will catapult mobile communication services and transform user experience. The third generation of mobile communication systems, 3G, lets customers use an extensive range of high-end data services on a wide variety of handsets and other devices.

Objective of the Study

Objective of project:

 To know about the marketing strategies adopted by the companies.  To find out the consumer satisfaction level of 3G services.  To know the customer perception of 3G services in Indore market.
 To study the various services provided by companies.

Review of literature

1.According to Philip Kotler, satisfaction is a persons feelings of pressure or disappointment resulting from products

perceived performance (outcome) in relation to his or her expectations. Customer satisfaction is the level of a persons felt state resulting from comparing a products perceived performance (outcome) in relation to the persons expectations. 2.Kalpana and Chinnadurai (2006) in their study titled Promotional Strategies of 3G Services: A Customer Perspective analyzed that the increasing competition and changing taste and preferences of the customers all over the world are forcing companies to change their targeting strategies. The study revealed the customer attitude and their satisfaction towards the cellular services in Coimbatore city. It was found that advertisement play a dominant role in influencing the customers but most of the customers are of opinion that promotional strategies of cellular companies are more sale oriented rather than customer oriented.

3.Fredric (2008) analyzed the importance of yield management and discrimination pricing in telecommunication sector. Yield management is the process of allocating the right type of capacity or inventory unit to the right kind of customer at the right price so as to maximize revenue or yield. Yield management and dynamic pricing strategies could be usefully applied to preserve and increase profitability. Yield management techniques can help telecom operators and similar companies to optimize the benefits they can derive from a subtle management of information networks and partnerships. However, such an approach is more difficult to implement in the telecommunications industry than in the airlines sector because of the difficulty to control (and sometimes to refuse) network access to customers

Marketing is a societal process which discerns consumers' wants, focusing on a product or serviceto fulfill those wants, attempting to move the consumers toward the products or services offered. Marketing is fundamental to any businesses growth. The marketing teams (marketers) are tasked to create consumer awareness of the products or

services through marketing techniques. Unless it pays due attention to its products and services and consumers' techniques. Unless it pays due attention to its products and services and consumers'

On the occasion of the 3G launch, Himanshu Kapania, Deputy Managing Director, Idea Cellular said: 3G services will mark the beginning of the next phase of Indias telecom growth story and bring the sector on par with the most advanced telecom markets in the world. Beginning today, Idea subscribers will be the first in India to experience the Gold Standard in 3G services. Currently, 10% of Ideas over 86 million subscribers are said to be using 3G enabled handsets. It is expected that these users will be the early adopters of 3G services. During 3G Spectrum Auctions on May 2010 Idea Cellular secured license for 10 telecom circles Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Kerala Maharasthra & Goa, Madhya Pradesh & Chattisgarh, Punjab, Uttar Pradesh East & Uttar Pradesh West & Uttarakhand. Beginning with MP, Chhattisgarh, Gujarat and HP, Ideas 3G services will be available in 200 towns by 15 April 11, progressively growing at the rate of 10 towns per day to cover 750 towns by mid 2011, and 4,000 towns by the end of FY12. Idea will target areas of industrial and commercial activity, centres of learning, and high potential rural hinterlands where broadband is yet to make a breakthrough. Idea has set up the most extensive customer service network to educate customers on 3G and support their requirements, across the country.

Two levels of marketingStrategic marketing attempts to determine how an organization competes against its competitors in a market place. In particular, it aims at generating a competitive advantage relative to its competitors. Operational marketing executes marketing functions to attract and keep customers and to maximize the value derived for them, as well as to satisfy the customer with prompt services and meeting the customer expectations. Operational Marketing includes the determination of the marketing mix (4 Ps). The four Ps are: Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support. Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary - it can simply be what is exchanged for the product or services, e.g. time, energy, psychology or attention. Promotion: This includes advertising, sales promotion, publicity, and personal selling, branding and refers to the various methods of promoting the product, brand, or company. Placement (or distribution): refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or services is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc.

Marketing CommunicationAdvertising- Reaches large, geographically dispersed audiences, often with high frequency; Low cost per exposure, though overall costs are high; Consumers perceive advertised goods as more legitimate; Dramatizes company/brand; Builds brand image; may stimulate short-term sales; Impersonal, one-way communication; Expensive . personal selling- Most effective tool for building buyers preferences, convictions, and actions; Personal interaction allows for feedback and adjustments; Relationshiporiented; Buyers are more attentive; Sales force represents a long-term commitment; Most expensive of the promotional tools Sales promotion- May be targeted at the trade or ultimate consumer; Makes use of a variety of formats: premiums, coupons, contests, etc.; Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales; Stimulates quick response; Short-lived; Not effective at building long-term brand preferences Public relation-Highly credible; Very believable; Many forms: news stories, news features, events and sponsorships, etc.; Reaches many prospects missed via other forms of promotion; Dramatizes company or product; Often the most under used element in the promotional mix; Relatively inexpensive (certainly not 'free' as many people think-there are costs involved) Direct Marketing -Many forms: Telephone marketing, direct mail, online marketing, etc.; Four distinctive characteristics: Non-public, Immediate, Customized,

Interactive; Well-suited to highly-targeted marketing efforts.

Research Methodology
Research methodology is away to systematically solve research problem. In it we study the various step that are generally adopted by researcher in studying his research problem along with logic behind them. It is necessary for a researcher to know not only the research method/techniques but also the methodology. It may be noted, in the context of planning & development that the significance of research lines in its quality and not in quantity. Researcher should know how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate .

Scope of study:
The given project is to identify the satisfaction level of consumers preferences with the help of various factors. The survey also aims to check the MARKET POTENTIAL OF 3G SERVICES IN INDORE CITY as well as of various mobile companies.

Types of Research
Along with this there may be 3 type of research methodology these are :They are  Exploratory Research  Descriptive Research  Casual Research Our research is based on the exploratory research. Exploratory Research The objective of this research is to gather preliminary information that will help us to define the problem and to suggest any hypothesis.

Primary data:Primary data is the original data collected specifically for the problem. Research approaches: - Primary data can be collected in five main ways: through Observation, focus groups, surveys, behavioral data, and experiments. Research instruments:- Marketing researchers have a choice of three main research Instruments in collecting primary data:  Questionnaires: A questionnaire consists of questions presented to respondents for their answers. Because of its flexibility, the questionnaire is by far the most common Instrument used to collect primary data. Questions can be open-ended or closed-Ended.

 Qualitative measures: Some marketers prefer more qualitative methods for gauging consumer opinio n because consumer actions do not always match their answers to survey questions. Qualitative research techniques are relatively unstructured measurement approaches that permit a range of possible responses, and they are a creative means of ascertaining consumer perceptions that may other-Wise be difficult to uncover.

Secondary data:Data potentially useful in solving a current problem but that were collected for a different purpose. Reason for selecting secondary data:Secondary data can be gathered quickly and inexpensively, compared to primary data, it is clear useful to study analyzing the recent development in the telecom industry. Contact methods:- Once the sampling plan has been determined, the marketing researcher must decide how the subject should be contact:

 Mail questionnaire: The mail questionnaire is the best way to reach people who would not give personal interviews or whose responses might be biased or distorted by the interviewers. Mail questionnaires require simple and clearly worded questions.

Telephone interview: Telephone interviewing is the best method for gathering information quickly; the interviewer is also able to clarify questions if respondents do not understand them. The response rate is typically higher than in the case of mailed questionnaires. Personal interview: Personal interviewing is the most versatile method. The interviewer can ask more questions and record additional observations about the respondent, such as dress and body language. Personal interviewing takes two forms. In arranged interviews, respondents are contacted for an appointment, and often a small payment or incentive is offered. Intercept interviews involve stopping people at a shopping mall or busy street corner and requesting an interview.

To decide from of data collection:For this project survey method was selected which was carried through person interview. Because information from different customers was required. To organize & collect data:Once the researcher has formulated and development a research design including questionnaire second thing he has to decide whether he has to collect the information. From all the targeted customers. There can be two types of survey are possible.  Sample Survey  Census Survey

For this project sample Survey was chosen Sample Sample is the true representation of the population by studying of the sample we can predict the behavior of the population. Sample Size: 100 mobile users (in this case) Method of Sampling:In this project, the survey was done within the market that means probabilistic convenience Sampling was carried out. 6. To process & analyze data:After the data was collected it was tabulated, analyzed and interpreted to the conclusion reach. Techniques Applied Bar Chart:- A chart in which the length of the bar represents the amount of the item associated with the bar. Pie Chart:- A circle divided in to sections, such that each section represent the percentage of the total area of a circle associates with one variable.

Limitations of the study

Only a sample of 100 mobile

phones users where taken for the study, so result of the

study may vary from the actual.

Since questionnaire where used for collecting the primary data, so there are chances that the given data may vary from the actual, which can lead to wrong results.

Due to the limitation of time, there were some of the factors, which were not considered in the study

Bibliography
BOOKS Books:
1. Kotler, Philip, Marketing Management, second edition., (New Delhi: Prenticehall of India ,1999). 2. Saxena, Rajan, Marketing Management, second edition ;( New Delhi; The McGraw Hill companies, 2007). 3. Dutta, Debraj & Dutta, Mahua, Marketing Management, second edition., (New Delhi: Vrinda Publication, 2006). 4. Kothari C.R., Research Methodology , second edition, New Delhi 5. Malohtra Naresh K, Marketing Research 5th edition chapter 1-12 6. Metal Cowboy: Tales from the Road Less Pedaled by Joe Kurmaskie

7. Marketing Secrets: Stories & Lessons on the Power of Direct Marketing to Start a Successful Business, Create a Brand by Joseph Sugarman 8. Marketing in the Moment: The Practical Guide to Using Marketing to Reach Your Customers First by Michael Scott Tasner (Jun 20, 2010) 9. Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by W. Chan Kim and Renee Mauborgne (Feb 3, 2005)

Webliography: Search Engine: y y y www.google.com www.3G.com www.reliance/3g.com

Questionnaire

Name Age..gender. mob. No Address.. Q.No.1. Do you use mobile phone. Yes ( ) No ( )

Q.NO.2.which type of mobile phone you use. 1. 3G ( ) 2.smart phone ( ) 3.other ( )

Q.NO.3. Do you know about 3G services. Yes ( ) No ( )

Q.NO.4.Do you use 3G services. a. yes( ) b. No ( ) Q.NO.5. which companies 3G services you have. 1. Idea ( ) 3. other ( 2.Reliance ( )

) 4. Tata docomo ( )

Q.NO.6. which service you like most. 1.Video Calling ( 3. Mobile TV ( ) 2.High Speed Internet ) 4. Other ( ) ( )

Q.NO.7. which companies 3G service give you fast preference . 1. Idea ( ) 3. other ( 2.Reliance ( )

) 4. Tata docomo ( )

Q.NO.8.Are you satisfy your operator service. Yes ( ) No ( )

Q.NO.9. which type of service you want in future to your operators. Ans

Q.NO.10.what is think about 3G service tariffs. a. good service c..medium service b.low service d . Not good

Q.NO.11.which type problem you face to using 3G service. 1. Week network ( ) 4. Internet speed ( ) 2.high coll rate 5.CRM ( ) ( ) 3.limited offers ( ) )

6.other (

Q.NO.12.Any suggestion for for 3G service.

THANKYOU