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Final project on idea

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Final project on idea

  1. 1. TABLE OF CONTENTSCHAPTERS PARTICULARS PAGE NO ACKNOWLEDGEMENT 4 TABLE OF CONTENTS 5 LIST OF TABLES 6 LIST OF CHARTS 7 ABSTRACT 8 I 1.1INTRODUCTION TO THE STUDY 9 1.2 INDUSTRY PROFILE 10 1.3 COMPANY PROFILE 21 1.4 PRODUCT PROFILE 27 1.5 OBJECTIVES OF THE STUDY 33 1.6 SCOPE OF THE STUDY 33 1.7 LIMITATIONS OF THE STUDY 34 II 2. REVIEW OF LITERATURE 35 III 3. RESEARCH METHODOLOGY 36 IV 4. DATA ANALYSIS AND 39 INTERPRETATION V 5.1 SUMMARY OF FINDINGS 53 5.2 SUGGESTIONS AND 53 RECOMMENDATIONS 5.3 CONCLUSION 54 BIBLIOGRAPHY 54 1
  2. 2. LIST OF TABLESTABLE PARTICULARS PAGENO NO 1 Which connection you use in your mobile 39 2 Why did you choose Prepaid or postpaid 40 3 If you use prepaid connection, which recharge voucher, you use 41 per month 4 How do you come to know about new scheme of Idea 42 5 how many times do you visit Idea Service Centre 43 6 What was your satisfaction level after visit of service Centre 44 7 Do you think Idea call rates are reasonable 45 8 Do you Idea network provides better communication service 46 9 Do idea provides better communication service from it 47 competitors 10 You said you were treated poorly or rudely. What exactly did 48 idea employees do? Please try to describe specific behaviors, if possible 11 Did the SERVICE provided by Idea people fail to perform as 49 promise 12 Did Idea employees treat you poorly or rudely 50 13 Did some other type of problem happen that we did not mention 51 yet 14 Which of the following are priced high by Idea that prompted you 52 to cancel your connection 2
  3. 3. LIST OF CHARTSCHART PARTICULARS PAGENO NO 1 Which connection you use in your mobile 39 2 Why did you choose Prepaid or postpaid 40 3 If you use prepaid connection, which recharge voucher, you use 41 per month 4 How do you come to know about new scheme of Idea 42 5 how many times do you visit Idea Service Centre 43 6 What was your satisfaction level after visit of service Centre 44 7 Do you think Idea call rates are reasonable 45 8 Do you Idea network provides better communication service 46 9 Do idea provides better communication service from it 47 competitors 10 You said you were treated poorly or rudely. What exactly did idea 48 employees do? Please try to describe specific behaviors, if possible 11 Did the SERVICE provided by Idea people fail to perform as 49 promise 12 Did Idea employees treat you poorly or rudely 50 13 Did some other type of problem happen that we did not mention 51 yet 14 Which of the following are priced high by Idea that prompted you 52 to cancel your connection 3
  4. 4. ABSTRACTCustomer satisfaction is the customer‟s fulfillment of the product quality and product cost and itsusage and to identify the customer satisfaction level towards IdeaCellular Service.This study helps to know the level of customer satisfaction and company also know thecustomer‟s exceptions and to know how the customers come to know about he product, productimage, product awareness and product price.This study also helps to analyze the preference of people about the product and perception ofpeople towards the idea cellular.Descriptive study is undertaken, sample size chosen is 100, and the statistical tool used ispercentage analysis. 4
  5. 5. Chapter-IIntroductionCustomer orientation stems from the company‟s adaption and implementation of the marketingconcept – A philosophy of every business unit, which as triple implementation namely:1.the victory of any business unit rest on customer who are willing to accept and pay for theproducts/services.2. the industry must be aware of what the market wants well in advance of production3. customer wants must be monitored continuously for assured success and to have an edge overcompetitionThe need to satisfy the customer for success in any commercial enterprise is very obvious. Theincome of enterprises is deriver from the payments receive from the products and supply to itsexternal customers commercial. If there are no customers, there is no income and there is nobusiness , In order words, customer is the sole reason for the existence of commercialestablishments.Thus the core activity and perhaps one of the important activity and perhaps one of the mostimportant activities of any company is to attract and retain customers. It is therefore no surprisethat peter Drunker, the renowned management Guru has said “To satisfy the customer is themission and purpose of every business organization”. 5
  6. 6. INDUSTRY PROFILETelecom Industry in India1. INDUSTRYOVERVIEW1.1 BackgroundThe Indian Telecommunications network is the third largest in the world and the second largestamong the emerging economies of Asia. Today, it is the fastest growing market in the world.Thetelecommunication sector continued to register significant success during the year and hasemerged as one of the key sectors responsible for India‟s resurgent India‟s economic growth.1.1.1 GrowthThis rapid growth has been possible due to various proactive and positive decisions of theGovernment and contribution of both by the public and the private sector. The rapid strides in thetelecom sector have been facilitated by liberal policies of the Government that provide easymarket access for telecom equipment and a fair regulatory framework for offering telecomservices to the Indian consumers at affordable prices.1.1.2 WirelineVs WirelessIt has also undergone a substantial change in terms of mobile versus fixed phones and publicversus private participation. The preference for use of wireless phones has also been predominantin the sector. Participation of the private entities in the telecom sector is rapidly increasing ratethere by presenting the enormous growth opportunities. There is a clear distinction between theGlobal Satellite Mobile Communication (GSM) and Code Division Multiple Access (CDMA)technologies used and the graph below shows the divide between the two.1.2 Segment wise Status1.2.1 Wireline ServicesWith increasing penetration of the wireless services, the wirelineservices in the country arebecoming stagnant. On the other hand, Broadband demand has picked up and promises tostabilize fixed line growth. 6
  7. 7. 1.2.2 GSM SectorIn terms of the Global System for Mobile Communication (GSM) subscriber base this nowplaces India third after China and Russia. China had 401.7 million GSMsubscribers1.2.3 CDMA ServicesCDMA technology was introduced in India as a limited mobility solution. The introduction ofCDMA services has created competition, lowered tariffs and offered many citizens access tocommunication services for the first time1.2.4 Internet ServicesInternet services were launched in India on August 15, 1995. In November 1998 the governmentopened up the sector to private operators. A liberal licensing regime was put in place to increaseInternet penetration across the country. The growth of IP telephony or grey market is also aserious concern. Government loses revenue, while unlicensed operation by certain operatorsviolates the law and depletes licensed operators market share. New services like IP-TV and IP-Telephony are becoming popular with the demand likely to increase in coming years. The scopeof services under existing ISP license conditions is unclear.1.3 Manufacture of Telecom EquipmentRising demand for a wide range of telecom equipment, particularly in the area of mobiletelecommunication, has provided excellent opportunities to domestic and foreign investors in themanufacturing sector. The last two years saw many renowned telecom companies setting up theirmanufacturing base in India. Ericsson has set up GSM Radio Base Station Manufacturing facilityin Jaipur. Elcoteqhas set up handset manufacturing facilities in Bangalore. Nokia set up itsmanufacturing plant in Chennai. LG Electronics set up plant of manufacturing GSM mobilephones near Pune. The Government has already set up Telecom Equipment and Services ExportPromotion Forum and Telecom Testing and Security Certification Centre (TETC). A largenumber of companies like Alcatel, Cisco have also shown interest in setting up their R&Dcenters in India. With above initiatives India is expected to be a manufacturing hub for thetelecom equipment.2 POLICY AND INITIATIVES2.1 Regulatory FrameworkThe Telecom Regulatory Authority of India (TRAI) was set up in March 1997 as a regulator forTelecom sector. The TRAI‟s functions are recommendatory, regulatory and tariff setting in 7
  8. 8. telecom sector. Telecom Disputes Settlement and Appellate Tribunal (TDSAT) came intoexistence in May, 2000. TDSAT has been empowered to adjudicate any dispute –• Between a licensor and a licensee• Between two or more service providers• Between a service provider and a group of consumers• hear and dispose of appeal against any direction, decision or order of TRAITariffs for telecommunication services have evolved from a regime where tariffs weredetermined by Telecom Regulatory Authority of India to a regime where tariffs are largely underforbearance. TRAI intervenes by regulating the tariffs for only those services, the markets ofwhich are not competitive.Universal Service Obligation Fund (USOF) exclusively for meeting the Universal ServiceObligation was established in April, 2002. The Universal Service Levy is presently 5 per cent ofthe Adjusted Gross Revenue (AGR) of all telecom service providers except the pure value addedservice providers like Internet, Voice Mail, E-Mail service providers etc. Indian Telegraph Acthas been amended in October‟2006 to provide support for all telegraph services including mobileand broadband to bridge the digital divide. With the introduction of the Unified AccessLicensing Regime, operators can offer telecom access services to consumers in a technologyneutral manner, subject to fulfilling certain conditions. Introduction of this regime has alsobroken the legal/regulatory impasse between the cellular and basic service providers. Issuance ofIntra-Circle Merger and Acquisition Guidelines provide investors an opportunity to take stakes inexisting telecom operations.2.2 Government InitiativesThe Government has taken the following main initiatives for the growth of the TelecomSector:• All telecom services have been opened up for free competition for unprecedented growth• 217 (Information Technology Agreement) ITA-I items are at zero Customs Duty. Specifiedcapital goods and all inputs required to manufacture ITA-I, items are at zero Customs Duty• Availability of low cost mobile handsets •the international Long Distance Services (ILDS)opened with effect from April 2002. Calling Party Pays (CPP) regime was implemented witheffect from 1st May• Guidelines for Unified Access Service License regime were issued in November 2003, 27licenses out of 31 Basic Service Licenses were converted to Unified Access Service 8
  9. 9. Licenses• In April 2004, license fee for Unified Access Service Providers (UAS) was reduced by 2 percent• License fee for infrastructure Provider-II reduced from 15 per cent to 6 per cent of the AdjustedGross Revenue and spectrum charges between 2 to 4 per cent in June 2004• Entry fee for NLD licenses was reduced to Rs. 2.5 Crore from Rs. 100 Crore. Entry fee for ILDreduced to Rs. 2.5 Crore from Rs. 25 Crore• Lease line charges have been reduced to make the bandwidth available at competitive prices tofacilitate growth in IT enabled services• One India plan i.e. single tariff of Re. 1/-per minute to anywhere in India was introduced from1st March 2006 by the Public Sector Undertakings. This tariff was emulated by most of theprivate service providers also. This scheme has led to death of distance in telecommunicationand is going to be instrumental in promoting National Integration further• The robust telecom network has also facilitated the expansion of BPO industry that is having500,000 employees now and adding 400 employees per day.• Annual license fee for National Long Distance (NLD), International Long Distance (ILD),Infrastructure Provider-II, VSAT commercial and Internet Service Provider (ISP) with internettelephony (restricted) licenses was reduced to 6 per cent of Adjusted Gross Revenue (AGR) witheffort from Jan 2006.• The Government‟s policy is neutral on use of technology by telecom service providers subjectto availability of scarce resources such as spectrum etc.• License Fees 6-10 per cent of Adjusted Gross Revenue (AGR)2.3 Foreign Direct Investment PolicyForeign Direct Investment (FDI) was permitted in the telecom sector beginning with the telecommanufacturing segment in 1991 - when India embarked on economic liberalization. FDI isdefined as investment made by non-residents in the equity capital of a company. For the telecomsector, FDI includes investment made by Non-Resident Indians (NRIs), Overseas CorporateBodies (OCBs), foreign entities, Foreign Institutional Investors (FIIs), American DepositoryReceipts (ADRs)/Global Depository Receipts (GDRs) etc.Present FDI Policy for the Telecom sector: 9
  10. 10. • In Basic, Cellular Mobile, National Long Distance, International Long Distance, Value AddedServices and Global Mobile Personal Communications by Satellite, FDI is limited to 49 per cent(under automatic route) subject to grant of license from the Department of Telecommunicationsand adherence by the companies (who are investing and the companies in which investment isbeing made) to the license conditions for foreign equity cap and lock-in period for transfer andaddition of equity and other license provisions.• Foreign Direct Investment up to 74 per cent permitted, subject to licensing and securityrequirements for the following:- Internet Service (with gateways)- Infrastructure Providers (Category II)- Radio Paging Service• FDI up to 100 per cent permitted in respect to the following telecom services:- ISPs not providing gateways (Both for satellite and submarine cables)- Infrastructure Providers providing dark fiber (IP Category I)- Electronic Mail- Voice MailThe above is subject to the following conditions:- FDI up to 100 per cent is allowed subject to the condition that such companies would divest 26per cent of their equity in favour of Indian public within 5 years, if these companies are listed inother parts of the world.- The above services would be subject to licensing and security requirements, wherever required.- Proposals for FDI beyond 49 per cent shall be considered by Foreign Investment PromotionBoard (FIPB) on a case-to-case basis.• In the manufacturing sector 100 per cent FDI is permitted under the automatic route.• In Basic, Cellular Mobile, paging and Value Added service, and Global Mobile PersonalCommunications by Satellite, FDI is permitted up to 49 per cent (under automatic route) subjectto grant of license from Department of Telecommunications• Foreign direct investment up to 74 per cent permitted, subject to licensing and securityrequirements for the Internet Service (with gateways), Infrastructure Providers (category-II), andRadio Paging Service 10
  11. 11. • FDI up to 100 per cent permitted in respect of- ISPs not providing gateways (both for satellite and submarine cables),- Infrastructure Providers providing dark fiber (IP Category I);- Electronic Mail; and- Voice Mail• FDI up to 49 per cent is also permitted in an investment company, set up for making investmentin the telecom companies licensed to operate telecom services. Investment by these investmentcompanies in a telecom service company is treated as part of domestic equity and is not set ofagainst the foreign equity cap.• Manufacturing - 100 per cent FDI is permitted under automatic route.• FDI is subject to the following conditions• FDI up to 100 per cent is allowed subject to the conditions that such companies would divest26 per cent of their equity in favour of Indian public in 5 years, if these companies are listed inother parts of the world.• The above services would be subject to licensing and security requirements, wherever required.• Proposals for FDI beyond 49 per cent shall be considered by FIPB on case to case Basis3. COMPETITION OVERVIEW3.1 Major PlayersThere are three types of players in telecom services:• State owned companies (BSNL and MTNL)• Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)• Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular,BPL Mobile, Spice Communications)Bharat Sanchar Nigam Limited (BSNL)Name Bharat Sanchar Nigam Limited (BSNL)Year of Establishment 2000 CompanyProfile Bharat Sanchar Nigam Ltd. is Worlds 7th largestTelecommunications Company providing comprehensive range of telecom services in India: 11
  12. 12. Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN,VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of thelargest public sector units in India.Global Presence/ MarketingIt has a network of over 45 million lines covering 5000 Network towns with over 35 milliontelephone connections.Acquisitions / StrategicAlliancesFuture Prospect BSNL plans to expand its customer base from present 47 million lines to 125million lines and infrastructure investment plan to the tune of Rs. 733 crores (US$ 16.67million) in the next three years.Mahanagar Telephone Nigam Limited (MTNL) Name Mahanagar Telephone NigamLimited (MTNL)Year of Establishment 1986Company Profile MTNL was set up by the Government of India to upgrade the quality oftelecom services, expand the telecom network, and introduce new services and to raise revenuefor telecom development needs of India‟s key metros. MTNL with a market share of about 13%of the National telecom Network has a customer base of 5.92 million. The Govt. of Indiacurrently holds 56.25% stake in the company.Acquisitions / StrategicAlliancesMTNL has formed a Joint Venture company in Nepal by the name of United Telecom Ltd.(UTL) in collaboration with Telecom Consultants India Limited (TCIL) in 2001 for providingWLL based basic services in Nepal. MTNL has set up its 100% subsidiary .MahanagarTelephone Mauritius Limited. (MTML) in Mauritius, for providing basic, mobile andinternational long distance 12
  13. 13. Reliance CommunicationName Reliance CommunicationsYear of Establishment 1999Company Profile Reliance Telecoms cellular services are available in 340 towns within its eight-circle footprint. Reliance Infocomm also offered for the first time in India, mobile data servicesthrough its World mobile portal. This portal leverages the data capability of the CDMA 1Xnetwork. Reliance Infocomm offers a complete range of telecom services covering mobile andfixed line telephony including broadband, national and international long distance services, dataservices and a wide range of value added services and applications aimed at enhancingproductivity of enterprises and individuals.Global Presence/ MarketingNetworkReliance Communications has IP-enabled connectivity infrastructure comprising over 150,000kilometers of fiber-optic cable systems in India, the US, Europe, Middle East, and the AsiaPacific region.Acquisitions / StrategicAlliancesInternational wholesale telecommunications service provider, FLAG Telecom amalgamateswith Reliance Gateway, a wholly owned subsidiary of Reliance Infocomm in 2004Tata TeleservicesName Tata TeleservicesYear of Establishment 1996 CompanyProfile Tata Teleservices is a part of the $12 billion TataGroup, which has 93 companies, over 200,000 employees and more than 2.3 millionshareholders. Tata Teleservices‟ bouquet of telephony services includes Mobile services,Wireless Desktop Phones, Public Booth Telephony and Wire line services. Other servicesinclude value added services like voice portal, roaming, post-paid Internet services, 3-wayconferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services andenterprise services. 13
  14. 14. Global Presence/ MarketingNetworkTata Teleservices has presence in across 19 circles that includes Andhra Pradesh, Chennai,Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab,Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, MadhyaPradesh and West Bengal.Acquisitions / StrategicAlliancesTata Teleservices has acquired Hughes Tele.com (India) Limited [now renamed TataTeleservices (Maharashtra) Limited] in 2002 Future Prospect The company is also expandingits footprint, and has paid Rs. 4.17 billion ($90 million) to Dot for 11 new licenses under the IUC(interconnect usage charges) regime.IdeaName IdeaYear of Establishment Acquired majority stake in Hutch Essar in India, by buying outcomplete stake of Hutch in 2007, Essar is still minority stakeholder in company CompanyProfile Idea Essar in India is a subsidiary of Idea Group Plc and commenced operations in 1994when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. Idea Essarnow has operations in 16 circles covering 86% of Indias mobile customer base, with over 45.78million customers. Idea Essar, under the Hutch brand, has been named the Most RespectedTelecom Company, the Best Mobile Service in the country and the Most Creative and MostEffective Advertiser of the Year.Global Presence/ MarketingIt has operations in 25 countries across 5 continents and 40 Network partner networks with over200 million customers worldwide.Acquisitions / StrategicAlliancesFuture Prospect IdeaEssar is expecting to touch over 35 million customers across 400,000 shopsand thousand of hutch‟s own employees along with employees of its business associates. 14
  15. 15. IdeaName IdeaYear of Establishment 1995Company Profile Idea Cellular is part of the Aditya Birla Group, which is Indias first trulymultinational corporation. Aditya Birla Nuvo Ltd. holds 35.7 per cent, Birla TMT Holdings Ltd.44.9 per cent, Grasim 7.5 per cent, and Hindalco 10.1 per cent in Idea.Global Presence/ MarketingNetworkHas a customer base of over 17 million, IDEA Cellular has operations in Delhi, Maharashtra,Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttaranchal, Haryana, UP West,Himachal Pradesh and Kerala. Acquisitions / StrategicAlliancesMerged with Tata Cellular Limited in 2001, thereby acquiring original license for the AndhraPradesh Circle Acquired RPG Cellular Limited and consequently the license for the MadhyaPradesh (including Chhattisgarh) Circlein 2001 In 2004 acquired Escotel, incumbent cellularservice provider in Haryana, UP(W) & Kerala and new licensee in HP Acquired EscortsTelecommunications Limited (subsequently renamed as Idea Telecommunications Limited) in2006 Merger of seven subsidiaries with Idea Cellular Limited in 2007 Future Prospect Idea alsoplans to enter rural and neglected circles as a strategy to gain subscribers. Other advancements inthe telecom industry will help it cut costs - use of e-mail to send bills to customers; sharing cellsites; smaller base transmission stations that will mean lesser infrastructure requirements andexpenses and independent tower operators. Along with its plan to go for a national long distancelicense, it will also look at international long distance in the near future. 15
  16. 16. CHALLENGES AND OPPORTUNITIESOpportunitiesThe telecom sector has been one of the fastest growing sectors in the Indian economy in the past4 years. This has been witnessed due to strong competition that has brought down tariffs as wellas simplification of policy environment that has promoted healthy competition among variousplayers... The mobile sector alone has been growing rapidly and has emerged as the fastestgrowing market in the whole worlds. Currently of a size nearing 70 million (GSM and CDMA),this sector is expected to reach a size of nearly 200 million subscribers by financial year 2008.The government has eased the rules regarding inner circle and intra circle mergers. This has ledto a slew of mergers and acquisitions in the recent past. Also as the sector is moving closer tomaturity, further consolidation is a reality and this will lead to the survival of more profitableplayers in this segment In order to further promote the use of Internet in the country thegovernment is taking proactive steps to develop this sector with the help of the various players inthis segment. For this purpose, the use of broadband technology is being mooted and this will goa long way in improving the productivity of the Indian economy as well as turn out to be the nextbig opportunity for telecom companies after the mobile communications segment Non-voiceservices and VAS are the gold mines. The big takeoff is expected with the rollout of 3G servicesin early 2007, once the spectrum issues are sorted out. Internet users base fast reaching near theEnglish speaking population base. Local language and content required for further growthInfrastructure equipment cost is down to a fraction of what prevailed just a few years ago.Operators can plan better expansion plan now increased viability for the operators to expand tosemi-urban and rural markets, hence, accelerate growth further it‟s not without reason that Indiais tipped to be the world‟s third-largest economy by 2050! No wonder if it happens much earlierInvestors can look to capture the gains of the Indian telecom boom and diversify their operationsoutside developed economies that are marked by saturated telecom markets and lower GDPgrowth rates. At a time when global telecom majors are struggling to cope with their losses andthe rollout of 3G networks, which has been a non-starter for close to a year now; India, with itstelecom success story, represents an attractive and lucrative destination for investment. 16
  17. 17. 1.3 COMPANY PROFILEOVERVIEW OF THE COMPANYIDEA CELLULARIDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE)and the National Stock Exchange (NSE) in March 2007.Idea is the 3rd largest mobile services operator in India, in revenue terms, and recorded asubscriber base of over 93.75 mn as of 31st May 2011. It became a pan-India integrated GSMoperator covering the entire telephony landscape of the country, and expanded its NLD and ILDoperations in FY 2010. During the year, Idea increased its revenue market share by over 1%,despite stiff tariff war in the market.The company has won license to offer 3G services in 11 service areas, which generate over 81%of the company‟s total revenue. Idea‟s 3G services will be launched in the year 2011.Idea‟s strong growth in the Indian telephony market comes from its deep penetration in the non-urban and rural markets. Idea has the highest share of rural subscribers as a percentage of totalsubscribers, amongst other GSM players. In fact, two out of every three new subscribers nowcome from non-urban market.Idea‟s innovative and revolutionary VAS offering has been a major growth driver. Be it MobileTV, which was launched for the first time in India on the Idea network; exhaustive Music libraryin multiple languages; DTs/ RBTs; and other content download from the world of Cinema,Music, Cricket etc. – Idea has consistently grown its VAS revenue. Its revenue share of VAS isnow higher than the industry average.Idea offers seamless coverage to roaming customers traveling to any part of the country, as wellas to international traveling customers across over 200 countries. Idea‟s partnership with over400 operators ensures that customers are always connected while on the move, within thecountry or other parts of the world.IDEA is the winner of „The Emerging Company of the Year Award‟ at The Economic TimesCorporate Excellence Awards 2009. IDEA Cellular also received the prestigious Avaya GlobalConnect Award for being the „Most Customer Responsive Company‟ in the Telecom sector inthe year 2010. The company has received several other national and international recognitionsfor its path-breaking innovations in mobile telephony products & services. It won the GSMAssociation Award for „Best Billing and Customer Care Solution‟ for 2 consecutive years. It wasawarded „Mobile Operator of the Year Award – India‟ for 2007 and 2008 at the Annual AsianMobile News Awards. 17
  18. 18. IDEA Cellular is an Aditya Birla Group Company, India‟s first truly multinational corporation.The group operates in 26 countries, and is anchored by over 130,600 employees belonging to 40nationalities. The Group has been adjudged the „6th Top Company for Leaders in Asia PacificRegion‟ in 2009, in a survey conducted by Hewitt Associates, in partnership with The RBLGroup, and Fortune. The Group has also been rated „The Best Employer in India and among theTop 20 in Asia‟ by the Hewitt-Economic Times and Wall Street Journal Study 2007.ValuesIntegrity - honesty in every actionAt Aditya Birla Group, Integrity is defined as: Acting and taking decisions in a manner that isfair, honest, following the highest standards of professionalism and also perceived to be so.Integrity for us means not only financial and intellectual integrity, but in all other forms as arecommonly understood.Key words that connote Integrity are:EthicalTruthfulPrincipledTransparentUprightRespectfulCommitment - deliver on the promiseAt Aditya Birla Group Commitment is defined as: On the foundation of integrity, doingwhatever it takes to deliver value to all stakeholders. In the process, taking ownership of ouractions and decisions, those of our team and that part of the organization that we are responsiblefor. 18
  19. 19. IDEA PartnersIDEA welcomes all businesses and individuals interested in partnering with us to enhance and strengthen the IDEproducts & services portfolio.To explore such potential partnerships, kindly get in touch with us by submitting the Partners Form.Some of our Technology and Content Partners:VASOn mobile Asia Cellebrum India Ltd SiddhivinayakPacific Ltd Astro Services Ltd.Kodiak Ltd Mauj Net4nuts India LtdYahoo Rediff India times 19
  20. 20. Sify Mobile2win NDTVROAMINGRoamware.inc Star home BhartiTelesoftMARKETING COMMUNICATIONSLowe India Pvt Ltd Mindshare 20
  21. 21. PUBLIC RELATIONSImprimis PRNETWORKNokia – Siemens EricssonBILLING 21
  22. 22. PromotersIDEA Cellular is part of the Aditya Birla Group, Indias first truly multinational corporation.Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged onvalue creation for its multiple stakeholders.The group operates in 25 countries, and is anchored by over 100,000 employees belonging to 25nationalities. The Group has been adjudged The Best Employer in India and among the Top 20in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007.A premium conglomerate, the Aditya Birla Group is a leader in swathe of products - viscosestaple fiber, aluminum, cement, copper, carbon black, insulators, and garments.The Group has also made successful forays into financial services, telecom, software, and BPOand retail sectors. Today, the Group is Indias most diversified business house.Our Promoters areAditya Birla Nuvo LimitedGrasim Industries LimitedHindalco Industries LimitedBirla TMT Holdings Private Limited 22
  23. 23. 1.4 PRODUCT PROFILEIdea Cellular Limited was incorporated in 1995. Idea is among the top five cellular operators inIndia with an 11 per cent all India subscriber‟s market share. More importantly, it ranks third interms of wireless revenue market share at 12.7 per cent. Idea ranks second with 20.8 percentrevenue market share in nine service areas where it holds 900 MHz spectrum and which derive48 per cent of the industry‟s gross revenues (Based on gross revenues for UAS and mobilelicenses only for December 09 quarter, as released by TRAI).The market positioning of Idea reflects the strength of its brand considering the fact that Ideaadded 14 out of its total 22 service areas in the past four years. Today it is a pan India player withcommercial operations in all 22 service areas. Its subscriber base has grown multifold from 7.37million in March 2006 to 63.82 million in March 2010.Idea holds 16 per cent stake in Indus Towers, a joint venture with other telecom majorsBhartiAirtel and Idea. Indus Towers is the world‟s largest tower company with over one lakhtowers.In 2007, Idea was listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange(BSE). Idea enjoys a market leadership position in many of its operational areas. It offers GPRSon all its operating networks for all categories of subscribers, and was the first company in Indiato commercially launch the next generation EDGE technology in Delhi in 2003. As a pioneer intechnology deployment, it has been at the forefront through the adoption of bio fuels to power itsbase stations, and by employing satellite connectivity to reach inaccessible rural areas in MadhyaPradesh.Idea has been a leader in the introduction of value-added services, and there are several firsts toits credit, including a voice portal „Say Idea,‟ Idea TV, Voice Chat, Instant Messenger and manymore. Tariff plans have been customer friendly, catering to the unique needs of differentcustomer segments, where „Women‟s Card‟ caters to the special needs of the woman on themove, and „Youth Card‟ covers the emerging youth segment.Idea has won numerous awards and is the only Indian GSM operator to win the prestigious GSMAssociation Award consecutively in the Best Mobile Technology category for the „Best Billingand Customer Care Solution‟ both in 2006 and in 2007, even in the face of internationalcompetition. Recently, Idea was adjudged the „Emerging Company of the Year‟ in 2009 by TheEconomic Times. 23
  24. 24. SERVICE’S PROVIDED BY IDEA Life becomes simpler when you become an Idea Postpaid customer. Choose from avariety of affordable and attractive talk plans, and many convenient payment options for yourmonthly bill.OFFERS GO POSTPAID  Talk plans  Payment choices  Download postpaid forms  Shops & Dealers To get a Idea Postpaid connection, all you have to do is submit a Customer Agreement Formand Enrollment form, along with one of the following documents as your ID and 1 1. Addressproof 1. Ration card 2. Passport 3. Driving licensee 4. ID card issued by any institution 5. Copy of electricity or telephone bill of your address Any document or communication issued by any authority of Central Government or localbodies showing your residential addressAny other documentary evidence in support of the address given in the declaration. 24
  25. 25. TALK PLANS Choose a talk plan that fits your usage and budget. And get a range of value addedservices to go with it. Know more Payment choices Idea offers you a variety of convenient and timesaving payment options. Choose the onethat suits you best. Know more Download postpaid forms Get yourself an Idea Postpaid connection. Subscribe to Value Added Services, Roaming,and more - right here. Know more. Full value plans Talk Talk Home 299 Roam 499 FV FV FV FV 199 399 699 899Monthly ChargesRental 0 0 0 0 0 0Minimum Billing Amount 199 399 699 899 299 499Free local talk time 0 399 699 899 0 0Free Local Idea Minutes 199 0 0 0 0 0Usage ChargesIncoming Free Free Free Free Free FreeLocal Outgoing / minto Idea phone 1 per 21 per 2 1.25 0.50 0.50 0.50 min minto mobile phones 1.25 1.69 1.19 0.75 1 1to landline phones (except in UP [W]1.25 1.69 1.19 0.75 1 1&Uttaranchal)to landline phones in UP [W] &Uttaranchal 2.40 2.40 2.40 2.40 1 1STD / min 2.40 2.40 2.40 2.40 1 1ISD / min (all inclusive)US, Canada, UK & Europe, Australia &7.2 7.2 7.2 7.2 7.2 7.2New Zealand, South East AsiaGulf, UK, Europe, SAARC, Africa,9.99 9.99 9.99 9.99 9.99 9.99Australia & New ZealandNorfolk Island, Cook Island, Cuba, Diego40 40 40 40 40 40Garcia, Guinea Bissau, Nauru, Sakhalin, 25
  26. 26. Saotome & Principle, Solomon Island,Tokelau, Tuvalu, VanuatuInmarsat / Iridium 500 500 500 500 500 500SMSLocal Idea 1.00 0.50 0.50 0.50 1.00 1.00Local 1.00 0.99 0.99 0.99 1.00 1.00National 2.00 2.00 2.00 2.00 1.00 1.00International 5.00 5.00 5.00 5.00 5.00 5.00Information Services 2.00 2.00 2.00 2.00 2.00 2.00 Prepaid Offers UP (E) Change Your Region Andhra Pradesh Chennai Delhi GujaratHaryana Karnataka Kerala Kolkata Maharashtra & Goa Mumbai Punjab Rajasthan Rest ofBengal Tamil Nadu UP (E) UP (W)OFFERS GO PREPAID  Cost structure  How to recharge  Download prepaid forms  Shops & Dealers  1 Free TV with Rs 699 Pack  STD to any phone @ Re 1  Mobile @ 1599  Call across UP @ 50p  Idea Chalta Rahe  Mobile@299  Become a VIP 26
  27. 27. 2 Free TV with Rs 699 PackBuy the new Rs 699 Idea Prepaid Pack and get a portable TV free!3 New customers get:A portable TVIdea Prepaid connection4 Chota Recharges of Rs 10 eachValidity for 30 daysSpecial Tariff Voucher worth Rs 605 Existing users get:A portable TVRecharge card worth Rs 199Special Tariff Voucher worth Rs 606 STD to any phone @ Re 1Now call any phone in India at Re 1/min for a monthly fee of Rs 250. Know more7 Mobile @ 1599Go mobile the economic way. For just Rs 1599 you get a cool Motorola C115 handset, an Ideaprepaid connection with 3 months validityChota Recharge cards worth Rs 65Special Tariff Voucher of Rs. 35Call across UP @ 50pCall any mobile phone across UP and Uttaranchal for just 50p per minute. You can also makecalls to landlines at Re 1 per minute, and Idea phones at 30p per minute. To enjoy these rates, allyou need is an Idea special tariff voucher. Know moreIdea Chalta Rahe Pay just Rs 999 for an Idea Chalta Rahe Prepaid, and stay mobile forever. Plus otherbenefits like full talk time on all future recharges. Know moreThe license period on the offer is valid till 11.12.2015Mobile@299 27
  28. 28. Pay just Rs 299 and get a fully loaded Starter pack with:Idea Prepaid connection1 Recharge card worth Rs 199 (with Rs 50 talk time& 30 day validity)STV worth Rs 354 Chota Recharge cards of Rs 10Become a VIPGet your own distinct identity, by selecting a distinct phone number. At no extra cost.Just buy a new prepaid connection of Rs 3000 and choose from VIP numbers like9838 679786 or 9838 636363. In addition to the VIP number, youll get full talk time worth Rs3000, valid for 270 days.You can also buy a new prepaid connection of Rs 2000 for VIP numbers like 9838500 777 or9838500 999. In addition to the VIP number, youll get full talk time worth Rs 2000, valid for180 days.*Service tax as applicable 28
  29. 29. OBJECTIVE FOR THE STUDY Today‟s complex business environment and hence competition makes itmandatory for a company to manage with information. The modern age will go down inthe books of history as the age of information revolution. Each and every department, may it be finance, production or human resourceneeds inputs from the marketing and sales department. Gone are the days of the shootingin the dark. Now the company must be sure what it is forgetting and should have a fairknowledge of the markets and its trends. Today market is customer driven and not product driven. So the companies haveto come out its products to fit in the requirements of the customer. How the company promote his product and his service all of them lie suppose tothe as player playing his first inning during the period of our research at Idea we analyzedthe advertising is most important thing for any company. If the advertisement and media selection of our company is good then we canincrease the number of customer. I would like to thanks all those people who are directly or indirectly related to mydevelopment and research of this project. The research has given a lot of practical knowledge for future.SCOPE OF THE STUDY This study has a wide scope to know about the factors that satisfying the customers buy the product This study tells about the level of customers satisfaction and the company also know the customers expectation This study helps to know how the customer comes to know about the product, product image, and product price. 29
  30. 30. LIMAITATION OF THE STUDY The researcher holds validity for the particulars period only. The availability of time factor is said to be limited for the researcher to conduct the study. It is hard to extract response from the customers in busy work schedule. Since the feedback of the customers was done through Questionnaire major limitation was unavailability of customers thus leading to highly low success rate. Most of the customers were so furious that they refused to part with any information Time factor 30
  31. 31. CHAPTER –IIREVIEW OF LITERATURECustomer satisfaction/dissatisfaction has become an important for marketing practitioners. Theauthor examines the issue in terms of customer satisfaction. In particular, practitioners andacademicians have noted that simply investing in greater service delivery may not return the costof investment. Part of problem is that customer response to satisfaction increment can benonlinear, and satisfaction and dissatisfaction thresholds may not occur at the same point. Theauthor propose a method for analyzing this complex behavior in a way that can lead to thedevelopment of more accurate satisfaction strategies through an understanding of therelationships among customers and transaction costs, satisfaction, and purchasing loyalty.SERVICE MARKETINGService marketing is marketing based on relationship and value. It may be used to market aservice or a product. Marketing a service-base business is different from marketing a goods-basebusiness.There are several major differences, including; 1. The buyer purchases are intangible 2. The service may be based on the reputation of a single person 3. It‟s more difficult to compare the quality of similar services 4. The buyer cannot return the service. 31
  32. 32. CHAPTER –IIIRESEARCH METHODOLOGYResearch Theory The marketing research has been defined by so many different authors in so manydifferent ways. The American Marketing Association defines marketing research as follows: “Marketing Research is the function which links the consumers, customers and public tothe market through the information – information used to intensify and defines marketingopportunities and problems, generate, refine and evaluate marketing actions, monitor marketingperformance and improved understanding of marketing as a process.” Marketing research specifies the information required to address these issues; designsmade for collecting the information‟s; manages and implements the data collection process;analyses the results; and communicates the findings and their implications. Severalcharacteristics of modern business encourage the use marketing research business.Marketing research is used during different phases of administrative process: 1. Setting goals and establishing strategies. 2. Developing a marketing plan. 3. Putting the plan into action. 4. Evaluating the plan‟s effectiveness. 32
  33. 33. TYPES OF DATA AND METHODS OF DATA COLLECTION The most important part of any research is collection of data. The task of data collectionbegins after the research problem has been defined. While deciding about the method of datacollection to be used for the study, the researcher should keep in mind that the data are of twotypes:SAMPLING METHOD The type of sampling adopted here is convenience-sampling method. This method ofsampling involves selecting the sample elements using convenient method without going throughthe rigor of sampling method.SOURCES OF DATA: The sources of data were primary as well as secondary.Primary Data: Primary data are those which collected for the first time. The researcher collected the datafrom the respondent by contacting them using questionnaire prepared for the study.Secondary Data: Secondary data are those which have already been collected by someone else. For thestudy secondary data were selected from document provided by the firm.RESEARCH DESIGNThere are three types of research Exploratory Research Descriptive Research Casual Research 33
  34. 34. We have used “Descriptive research design”The basis of my research was primary data which I collected from 100 peoples i.e. sample size inthe service center through “Questionnaire”Statistical Tool:Percentage Analysis: In this study the researcher has used the percentage analyses method. Percentage analysesare done determine the percentage value for the entire different question used. Percentage usedfor making comparison between two or more series of data. No. of respondentsPercentage % = X 100 Total no. of respondents 34
  35. 35. CHAPTER –IV ANALYSIS AND INTERPRETATIONAnalysis of dataQues 1: Which connection you use in your mobile. Post Paid Prepaid 37% 63% Contents Customer Response Postpaid connection 37% Prepaid Connection 63% Total 100%Inferences:The above table shows that 63% are prepaid connection. 35
  36. 36. Ques-2 Why did you choose Prepaid or postpaid 37%42% 45 40 35 30 Economical 25 20 Attractive Scheme 15 10% 11% Like Advertisment 10 5 None 0 Economical Attractive Like None Scheme Advertisment Contents Customer Response Economical 42% Attractive Scheme 37% Like advertisement 10% None 11% Total 100%Inferences:The above table shows that most of the people choose Idea cellular because it is economical. 36
  37. 37. Ques-3 If you use prepaid connection, which recharge voucher, you use per month. 2800% 352900% 30 25 20 2500% Rs 199 15 Rs 300 1800% Rs 500 10 Rs 1000 or more 5 0 Rs 199 Rs 300 Rs 500 Rs 1000 or more Contents Customer Response Rs 199 18% Rs 300 29% Rs 500 28% Rs 1000 or more 25% TOTAL 100%Inferences:The above table most of the people investing less than 300 per month 37
  38. 38. Ques4 how do you come to know about new scheme of Idea. 30 25 Friend 20 Hoidings 15 Tv add News paper 10 Customer care Other source 5 0Contents Customer ResponseFriends 21%Holdings 15%TV Add 29%News paper 28%Customer care 9%Other sources 1%Total 100% 38
  39. 39. Ques 5: how many times do you visit Idea Service Centre? 45 40 35 30 25 Series1 20 15 10 5 0 first time weekly monthly yearly Contents Customer Response First time 80% Weekly 4% Monthly 6% yearly 10% Total 100%Inferences:The above table shows most of the people visited idea store for the first time 39
  40. 40. Ques 6: What was your satisfaction level after visit of service Centre? 40 35 30 25 20 Series1 Series2 15 10 5 0 1 2 3 4Contents Customer ResponseSatisfied 70%Not satisfied 10%Highly satisfied 20%total 100%Inferences:The above table shows most of the customer is satisfied with service centre. 40
  41. 41. Ques7: Do you think Idea call rates are reasonable? 35 30 25 20 Series1 15 10 5 0 yes no may beContents Customer Responseyes 58%no 22%May be 20%Total 100%Inferences:Most of the people think that call rates are reasonable. 41
  42. 42. Ques8: Do you Idea network provides better communication service? 40 35 30 25 20 Series1 15 10 5 0 yes noContents Customer Responseyes 76%no 24%Total 100%Inferences:The above table shows that Idea network provides better communication. 42
  43. 43. Ques 9: Do idea provides better communication service from it competitors 50 45 40 35 30 25 Series1 20 15 10 5 0 yes no may beContents Customer Responseyes 90%no 4%May be 6%Total 10%Inferences:Most of the people think Idea provide better communication service than competitor. 43
  44. 44. Ques 10: You said you were treated poorly or rudely. What exactly did idea employees do?Please try to describe specific behaviors, if possible. 30 25 20 Series1 15 Series2 10 5 0 1 2 3 4 5Contents Customer ResponsePut on hold 44%Not responsive 12%Were discourteous 24 %Large queue time 30%Total 100%Inferences:The above data shows most of the customer executive put the call on the hold. 44
  45. 45. Ques 11: Did the SERVICE provided by Idea people fail to perform as promise? 40 35 30 25 20 Series1 15 10 5 0 yes noContents Customer Responseyes 30%no 70%Inferences:The above table shows Idea service fail to provide promise to customers. 45
  46. 46. Ques12: Did Idea employees treat you poorly or rudely? 40 35 30 25 20 Series1 15 10 5 0 yes noContents Customer ResponseYes 24%No 76%Total 100 %Inferences:The above data shows that most of Idea people did not treat rudely 46
  47. 47. Ques13: Did some other type of problem happen that we did not mention yet? 35 30 25 20 Series1 15 10 5 0 yes noContents Customer ResponseYes 40%No 60%Total 100 %Inferences:Most of the people think that the service is quite ok. 47
  48. 48. Ques14: Which of the following are priced high by Idea that prompted you to cancel yourconnection? 20 18 16 14 12 Series1 10 Series2 8 6 4 2 0 1 2 3 4 5 6Contents Customer ResponseMonthly rental for subscriptions 16%Air time usage rates 26%Monthly rental for vas 36 %Recent changes in your budget 22%Total 100%Inferences:Most of the people don‟t want any changes in budget. 48
  49. 49. CHAPTER-V FINDINGS 1. In my analysis the performance of Idea is varying from area to be because of its advertising strategy and many other facilities are different. 2. In my analysis around more then 50% people says that Idea service is good and rest are people says no comment. 3. Idea‟s main competitor is Airtel. While Idea and Airtel, both are providing same service so it is most important to use more and effective advertising strategy. 4. Idea provided its service to its customer when ever they need and also where ever the need with the help of customer cares. In case of telecommunication customer are very choosy and economicalSUGGESTION During the survey I come to know about some short coming of Idea telecom. Thisshortcoming can be removed with the help of following suggestion and help Ideatelecommunication. In expanding its market through advertisement and improving its marketposition. 1. Promotional program conducted b the company should be on large scale for the customer with improved visual aids. 2. Company should increase the personal contact with the customer because they have some problems that can be solved by the Idea staff only. 3. For youngsters Idea should provide some free services as like Reliance Infocomm. 4. Idea should appoint few more celebrities for advertisement. 49
  50. 50. CONCLUSION It is always difficult to measure the effectiveness of service center this is to conclude thatthe research named as “Customer satisfaction level at Idea service center” will be useful forthe organization this research has been done keeping the constraints and requirements of the Ideawith the help of this research it in easy for Idea to know about the service center and customersatisfaction level. It can help them to now what their customer wants from them. It will help the organization to know that what more their customer want from them.What are their weaknesses which the organization can improve in order to service center in orderto the services performed there. I tried my best to make this research report in spite of that few mistakes in it and I knowthis thing. So kindly ignore most of the customer are satisfied with their services but wants toswitch over a new upgraded service if given an opportunity with additional feature and least risk. BIBLIOGRAPHY  REFERENCE BOOKS: 1. Philip Kotler& Keller : Marketing Management 12th edition 2. C.R.Kothari: Research Methodology. 3. Dr.P.N.Arora : Statistics For Management.  WEBSITES: www.google.com www.wikipedia.com www.adityabirla.com www.idea.com www.telecomindustry.com 50
  51. 51. ANNEXURE QUESTIONNAIREName: - ___________________________________Age: - ________________________________Gender: - Male FemaleAddress: - ____________________________________________________________________________Mobile No. ______________________________________Occupation: - a) SERVICE b) BUSINESS c) STUDENT d) HOUSEWIFE e) OTHERSQues1: Which connection you use in your mobile. a) Postpaid connection b) PrepaidQues 2: Why did you choose Prepaid or postpaid. a) Economical b) Attractive Scheme c) Like advertisement d) None of aboveQues 3: If you use prepaid connection, which recharge voucher, you use per month. a) Rs 199 b) Rs 300 c) Rs 500 d) Rs 1000 or More 51
  52. 52. Ques 4: How do you come to know about new scheme of Idea? a) Through friend or relative b) Through Holdings c) T.V Add d) News Paper e) Customer Care f) Any Other SourcesQues 5: how many times do you visit Idea service center. A) First time b) Weekly C) Monthly d) YearlyQues6: What was your satisfaction level after visit of service Centre? a) Satisfied b) Not satisfied c) Highly satisfiedQues7: Do you think Idea call rates are reasonable? A) Yes b) No c) May beQues8: Do you Idea network provides better communication service. A) Yes b) NoQues9: Do Idea provides better communication service from it competitors. A) Yes b) No c) May be 52
  53. 53. Ques10: You said you were treated poorly or rudely. What exactly did Idea employees do? Please try to describe specific behaviors, if possible. a. PUT ON HOLD b. NOT RESPONSIVE c. WERE DISCOURTEOUS d. LARGE QUEUE TIME Ques 11: Now we would like your help in classifying the problem or problems you experienced. For each problem I mention, please answer “Yes” if the problem applies to you, or “no” if it does not. a. Did the SERVICE provided by Idea people fail to perform as promise? YES NO b. Did Idea employees treat you poorly or rudely? YES NO c. Did some other type of problem happen that we did not mention yet? YES NO Ques12 Is Idea user friendly? ( ) Yes; ( ) No Ques13 how long did the customer service take to respond on your complaint? ( ) 1 Day; ( ) 1-2 Days; ( ) 3-4 Days; ( ) Above 5 days ( ) Response quickly Ques14 If you are getting problem with internet connection services did the customer service personal have made it easy for you to understand how to use? ( ) Yes; ( ) No Ques15 Do you recommend the product to others? ( ) Yes; ( ) NoQues16 Are you aware that there are toll free help line numbers available with your Idea connection? Yes No 53
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