Mobile Phone and Service Provider

“To study consumer preference for selecting mobile Service provider and to measure the effectiveness of sales promotion activity”

A Study Conducted for
Uninor Telecom

CHAPTER-1
INTRODUCTION
INTRODUCTION

1.1 Definition of the Project-
The project is all about to study the buying behaviour of customer while selecting a GSM service provider and to identify the preferences of costumers.

1.2 Significance of the Project-

The significance of the project is it helps to acquire and retain customers by analyzing feedbacks given from various GSM Postpaid/Prepaid users which include a comparative survey among various GSM operators in Pune.

1.3 Scope of the Project-

The scope of project should use the result to produce a document that specifically spells out what is to be excluded and included while designing strategy. Understanding the voice of customer allows you to identify customer needs and design feature to meet these needs.

To identify the needs of customer, research is conducted through questionnaire filled by 150 GSM users in Pune. Research is conducted across various geographical locations in Pune, which includes variety of subscribers like: - IT employees, business professionals, students, housewives.

1.4 Outline of the Project report –

This project report comprises of introduction about Uninor telecom, brief information about Uninor. In literature review chapter theoretical framework about service marketing and consumer behavior in telecom sector is given. In next chapter research methodology, data collection techniques are discussed. Also in same chapter data analysis is given.

CHAPTER-2

COMPANY OVERVIEW

INDUSTRY OVERVIEW

The Indian telecommunications industry is one of the fastest growing in the world.The number of telecom subscribers in the country reached 621.28 million as on March 31, 2010, an increase of 3.38 per cent from 600.98 million in February 2010 and India is expected to remain the world’s second largest wireless market after China in terms of mobile connections

Classification of Telecommunication services 1. Basic services 2. Cellular services 3. Internet Service Provider (ISP)
Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodafone, Idea and Uninor telecom while the CDMA sector is dominated by Reliance and Tata Indicom.

COMPANY OVERVIEW

67.25% of uninor is owned by Norwegian telecom giant Telenor, and 32.75% by UNITECH. Uninor has started mobile services in India at the end of 2009, focusing on the GSM technology.

Uninor is India 's eighth nation-wide mobile operator, in a competitive landscape of 13 nation-wide or regional mobile operators. The company is targeting an 8 % pan-Indian market share.

To quickly launch mobile services only nine months after the foundation of the new company, Uninor has entered into network and base station service agreements with partners. Tower sharing agreements are concluded with Wireless-TT Info Service Limited.

The uninor service is currently available in 13 circles out of 22 as of June 2010:

1. Uttar Pardesh (West) and Uttrakhand 2. Uttar Pradesh (East) 3. Bihar and Jharkhand 4. Karnataka 5. Andhra Pradesh 6. Tamil Nadu 7. Kerala 8. Orissa 9. Kolkata 10. Rest Of Bengal 11. Gujarat 12. Mumbai 13. Maharashtra and Goa

Uninor India has introduced two call rate plans to attract customers to the GSM mobile service. A ‘talk more’ at 29 paise base plan and ‘call more’ at 29 paise subscription plan. These plans are designed for those customers who talk longer on their calls or those who make more than four calls a day under the basic plan the users are charged at 29p/m.

Uninor has got different tariff plans for different states. Some of them are- • i gain 53 (125 std mins) • my connect 9 • my connect 90 • i gain-free talk time pack 37 • i gain-free talk time pack 197 • i gain 24 (National SMS pack) • i gain 32 (U.P East and Bihar) • i gain 49 (Orissa) • i gain 7 • i gain 13 • i gain 16 • i gain 32 • i gain 49 • i gain 99 • i gain 129 • i gain 19 (AP sms pack) • i gain 23 (AP sms pack) • i gain 24*7 changing discount plan

CHAPTER-3

THEORETICAL BACKGROUND

Consumer Behaviour-

Consumer behaviour is the study of when, why, how, and where people do or do not buy product. It blends elements from psychology, sociology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people 's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.

The consumer behaviour model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses. It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people).The consumer behaviour model, where the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer. The marketing stimuli are planned and processed by the companies, whereas the environmental stimulus is given by social factors, based on the economical, political and cultural circumstances of a society. The behavioural model contains the buyer characteristics and the decision process, which determines the buyer’s response.

[pic]

(Model of Consumer Behaviour)

The consumer behaviour model considers the buyers response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. However, in reality many decisions are not made in awareness of a determined problem by the consumer.

CHAPTER-4

OBJECTIVES

Primary Objective-

• To identify the factors which influence mobile user to select a particular telecom service provider.

• To identify the factors which influence mobile user to switch to another brand.

Secondary Objective-

• To study the effectiveness of sales promotional activity at UNINOR.

• To identify the changing need of the mobile users.

• To understand the problems faced by the customer regarding the quality of the service offered by different GSM service provider.

CHAPTER-5

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research design: Descriptive type
Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual or a group. It includes surveys and fact finding enquiries of different kind. The major purpose of this research is description of the state of affairs as it exists at present.

Research Method: Survey Method
All those methods which are used by the researchers during the course of studying his research problem are termed as research methods. Survey method refers to the behavior and instruments used in selecting and constructing research technique.

Sample Size:
A sample of 100 people was taken on the basis of convenience.

Sampling Area:
A sample unit is taken on the basis of geographical area. The survey is been conducted in mumbai

Sampling Technique: Non –probability convenience sampling.

Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:

Primary Source: The data has been collected directly from respondent with the help of structured questionnaires.

Secondary Source: The secondary data was collected from internet and references from Library CHAPTER-6

DATA ANALYSIS AND INTERPRETATION

Q1. Which cellular service would you prefer?

Table no-1

| |Pre-paid |Post-paid |Total |
|No. of customers |64 |36 |100 |

Graph no-1

[pic]

Findings-64% of market would go for Prepaid at the same time 36% for Postpaid.

Interpretation-Prepaid services are most preferred by customers.

Q2. What type of pulse rate suit you best in a cellular service provider?

Objective- To find out the preference for billing system?

Table-2

|Billing Pattern |Per second billing |Per minute billing |Total |
|No. of customers |57 |43 |100 |

Graph-2

[pic]

Findings- 57% would choose per second billing system at the same time 43% will go for per minute billing.

Interpretation- Majority of customer would like to prefer the per second billing while selecting a service provider.

This describes the minority aspect of consumer buying behavior.

Q3. What is the monthly expenditure of your mobile? (In Rupees)

Objective-To find out average revenue per user rate (A.R.P.U).

Table-3

|Monthly Expenses |200-400 |400-600 |600-1000 |Above 1000 |
|No. of Customers |43 |31 |18 |8 |

Graph-3

[pic]

Findings- Rs.200-400 - 43% Rs.400-600 - 31% Rs.600-1000 - 18% Above Rs.1000 - 8%

Interpretation- Among the respondent A.R.P.U for G.S.M user is Rs.300-500.

Q4. What feature attracts you when you go for a service provider?

Objective- To find out the basic need of a customer from a G.S.M service provider.

Table-4

|Services |Call rate |Network coverage |Connectivity speed |Voice clarity |Tariff plan |
|No. of customers |18 |44 | 2 |9 |27 |

Graph-4

[pic]

Findings- Network coverage assumes greater importance over other parameters while selecting a service provider. It is followed by tariff plan and call rates.

Interpretations- While selecting a particular operator most of the users give first preference to Better Network and secondly to tariff plan.

Q5. What is your call pattern?

Objective- To find out the usage pattern of various subscribers.

Table-5

|Call pattern |Same network |Other network |STD |SMS |
|No. of customer |32 |45 |16 |7 |

Graph-5

[pic]

Findings- Same network-32% Other network-45% STD-16% SMS-7%

Interpretation- Mostly the call pattern is mobile-mobile in other network. i.e. - users does not restrict him to call in same network.

Q6. Reason for selecting a particular operator?

Objective- To find out which attributes plays an important role while selecting any GSM operator.

Table-6

|Reasons |Brand name |Better network |Better service |Lower call rates |Plans |Packs |
|No. of customer |3 |33 |21 |27 |14 |2 |

Graph-6

[pic]

Findings-While selecting a mobile service provider customer first look for the network coverage of that particular provider around his location followed by the priority shifts to lower call rates.

Q7. Would you prefer to change your current mobile service provider if you are dissatisfied with the services?

Objective-To study the brand switching behaviour of customer.

Table-7

|Switching of brand |Yes |No |
|No. of customers |67 |33 |

Graph-7

[pic]

Findings- 67% of the respondent said yes and 33% of respondent said no.

Interpretation- The above analysis throws an important point that the customer do not feel hesitate while changing their current service provider if they are dissatisfied with the subscriber. The factor like “Change of Number” also deters them. The company needs to deliver consistence performance to satisfy customer and to avoid churn.

Q8. If you have to change your current mobile service operator then on which basis you will change?

Objective- To study the most preference while switching to another service provider.

Table-8

|Most preference |Free SMS |Low call rate |Free call on same network |Value added service |
|No. of customers |8 |54 |14 |24 |

Graph-8

[pic]

Findings- Low call rate and free call on same network are the primary additional features that people look for while changing their service provide.

Q9. How does value added services like DIALER TONE, GPRS, CALL FORWARDING, and CALL DIVERTING etc affect your purchase decision?

Objective- To know the preference for Value added services provided by the service provider.

Table-9

|V.A.S |Very highly affect |Highly affect |Neutral |Rarely affect |Never affect |
|No. of customer |31 |38 |9 |12 |10 |

Graph-9

[pic]

Findings- Consumer wants value added service in addition with the core benefit of the product.

69% of respondent give preference to V.A.S.

It also creates differentiation for many companies.

Q10. For selecting a particular brand whom among the following source did you take advice?

Objective- To find the source which influence consumers buying decision.

Table-10

|Influencer |Family |Advertisement |Dealer |Friends |
|No. of customer |31 |19 |8 |42 |

Graph-10

[pic]

Findings-While brand selection family and friends plays an important role. 73% of the customer served decides their brand on the basis of friends and family.

Q11. Promotional activities conducted by companies plays an essential role.

Objective- To measure the effectiveness of promotional activity.

Table-11

| |Strongly agree |Agree |Neither agree nor |Disagree |Strongly disagree |
| | | |disagree | | |
|No. of customer |34 |38 |19 |6 |3 |

Graph-11

[pic]

Findings- 72% of the total customer agreed that sales promotional activities conducted by companies plays an essential role.

Q12. What attracts you the most in any advertisement campaign you see?

Objective- To know the factor which atttracts the customer while promotion.

Table-12

|Factors |New concept |Brand itself |Brand Ambassador |Product |
|No. of customer |43 |16 |6 |35 |

Graph-12

[pic]

Findings- 43% of the respondent gets attraction towards the new concept followed by the product of the company (35%) while they come across a advertisement campaign.

CHAPTER-7
CONCLUSION

CONCLUSION

• Through our survey I have observed that 64% of the customers prefer to get a prepaid connection while selecting a mobile service provider. • When a customer selects or subscribe to a service provider he or she gives more importance to coverage. Nearly 43% consumer looks for good coverage area while selecting a mobile service provider. • 57% of customer surveyed wants the per second billing which is currently not available in Uninor telecom for Maharashtra & Goa customer. • Consumer also gives preference to VAS like caller tune, call forwarding, call waiting, GPRS etc. • Customers are less brand loyal in telecom sector as 67% of customer willing to change their current mobile service provider if their dissatisfied with the services. • While selecting a particular operator most of the users give first preference to BETTER NETWORK and LOWER CALL- RATES. • Telecom is a service industry hence reason for customer dissatisfaction is not the product but the service provided to the customer hence any degradation in service result in shifting of service provider. • Buying decision in telecom sector is mostly influenced by the social factor like family, friends, colleagues etc. hence while selecting the service provider they took the suggestion from these person. • 72% of the customers surveyed are agreed that promotional activities conducted by companies plays an essential role. • 43% of the respondent gets attraction towards the new concept followed by the product of the company (35%) while they come across an advertisement campaign.

CHAPTER-8
LIMITATION
LIMITATION

The present study subjected to following limitations-

• Sometimes the respondent gives incomplete or biased answer in order to finish quickly. • Most of the respondents were interviewed while sales promotion activity. • The scope of the study was restricted to only mumbai city.

CHAPTER-9
RECOMMENDATION

RECOMMENDATION

• Company should introduce per second pulse rate in Maharashtra & Goa region. • Though a new company, Uninor has got good network coverage hence uninor can use this attribute as major promotional tool. • By providing more V.A.S like cost effective internet on mobile, free monthly SMS. • As report shows that customer gets attracts by new concept applied by company so Uninor has to come up with different unique tariff plans • Promotional activities should be conducted in regular interval of time. • Sim cards and recharge voucher should make available in all most all retail outlets including urban and rural market to avail the services easily for the customers.

ANNEXURE

“TO STUDY CONSUMER PREFERENCE FOR SELECTING MOBILE SERVICE PROVIDER AND TO MEASURE THE EFFECTIVENESS OF SALES PROMOTION ACTIVITY”

Q1. Which cellular service would you prefer?

a) Post-paid b) Pre-paid

Q2.What type of pulse rate suit you best in a cellular service provider?

a) Per second billing b) Per minute billing

Q3.What is the monthly expenditure of your mobile? (In Rupees)

a) 200-400 b) 400-600 c) 600-1000 d) Above 1000

Q4. What feature attracts you when you go for a service provider?

a) Call rate b) Network coverage c) Connectivity speed d) Voice clarity e) Tariff plan

Q5. What is your call pattern?

a) Same network b) Other network c) STD d) SMS

Q6. Reason for selecting a particular operator?

1. Brand name 2. Better network 3. Better services 4. Lower call rates 5. Plans 6. Packs

Q7.Would you prefer to change your current mobile service provider if you are dissatisfied with the services?

a) YES b) NO

Q8. If you have to change your current mobile service operator then on which basis you will change?

a) Free SMS b) Low call rate c) Free call on same network d) Value added services

Q9. How does value added services like DIALER TONE, GPRS, CALL FORWARDING, and CALL DIVERTING etc affect your purchase decision?

a) Very highly affect b) Highly affect c) Neutral d) Rarely affect c) Never affect

Q10. For selecting a particular brand whom among the following source did you take advice?

a) Family b) Advertisement c) Dealer d) Friends

Q11.Promotional activities conducted by companies plays an essential role.

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly disagree

Q12. What attracts you the most in any advertisement campaign you see?

a) New concept b) Brand itself c) Brand ambassador d) Product

BIBLIOGRAPHY

TEXT BOOKS-
Research Methodology- C.R.Kothari
Marketing Management- Phillip Kotler

WEBSITES- www.uninor.in www.wikipedia.com www.answers.com www.google.com

Bibliography: TEXT BOOKS- Research Methodology- C.R.Kothari Marketing Management- Phillip Kotler WEBSITES- www.uninor.in www.wikipedia.com www.answers.com www.google.com