A Project Report On Perception of Mobile Telephony Among Youth

Perception of Mobile Telephony among Youth
Sl No Part 1 Background Study 1 2 3 4 5 6 TATA Teleservices Ltd Telecom Sector in India, A Brief Telecom Sector Analysis Porters Five Forces Analysis Key Mobile Service Providers in India Segmentation of the Indian Mobile Consumer Market 3 6 7 11 12 13 Contents Page No
Part 2 Research Work 1 2 3 4 5 7 8 9 10 11 Introduction to the Problem & Methodology Research Design Perceptual Mapping Fishbein Multiattribute Model Tabulation & Analysis Findings Suggestions Limitations & Further scope of this study Bibliography Annexure 16 17 19 21 22 34 35 36 37 38
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Executive Summary
The prepaid market constitutes 80% of the total mobile services market. The youth segment in the prepaid is growing at a noticeable pace. All the players in this market are aggressively competing against each other. This study is undertaken to study the perception towards the mobile service providers in the youth segment in the prepaid market in Belgaum City. Data was collected from 150 respondents (college goers) This is done by measuring the importance assigned by the users to the factors like Economy, Performance & Value Added Services. The strength of these factors as seen by the users in their respective brands is also measured. Also considered for this study is the Frequency of usage of various services. Perceptual Mapping, Fishbein Multiattribute Model & Average Composite Score Method are the tools used for the analysis. Key findings are as follows 1. 2. Performance & Economy are the most sought factors by the respondents. Based on the Multiattribute Model, Airtel & Hutch are the preferred brands.
Local SMS & Local Calls are the most frequently used services.
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TATA Teleservices Ltd
Tata Teleservices is part of the $21.9 billion (Rs 967,229 million) Tata Group that has over 90 companies in distinct sectors like steel, chemical, software, etc. over 220,000 employees are working in this Group and more than 2.8 million shareholders. Tata Teleservices spearheads the Groups presence in the telecom sector. Tata Teleservices was incorporated in 1996; Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. Tata Teleservices started its journey with the major acquisition of Hughes Telecom (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002, the company has swung into expansion mode. Tata Teleservices operates in 20 circles i.e. 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, Madhya Pradesh and WestBengal. Having pioneered in the CDMA 3G1x technology platform in India, Tata Teleservices has established a robust and reliable telecom infrastructure that ensures quality in its services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable, technologically advanced network The company, which heralded convergence technologies in the Indian telecom sector, is today the second market leader in the fixed wireless telephony market with a total customer base of over more than 3.8 million. Tata Teleservices bouquet of telephony services includes Mobile services, Wireless Desktop Phones, Public Booth Telephony and Wire line services. Other services include value added services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, data and calling card services. Some of the other products launched by the company include prepaid wireless desktop phones, public phone booths, new mobile handsets and new voice & data services such as games, Voice Portal, picture messaging, polyphonic ring tones, interactive applications like news, cricket, astrology, etc.
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Tata Indicom redefined the existing prepaid mobile market in India, by unveiling their new offering Tata Indicom Non Stop Mobile which allows customers to receive free incoming calls. Recently, Indias fastest and youngest telecom service provider entered the prestigious Limca Book of Records, by inaugurating 100 True Value Shoppes nationally on a single day. Tata Teleservices has a strong workforce of 6000. In addition, TTSL has created more than 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its manpower needs. Today, Tata Teleservices Limited along with its subsidiary Tata Teleservices (Maharashtra) Limited serves over 13 million customers in over 3100 towns. With an ambitious rollout plan both within existing circles and across new circles, Tata Teleservices is offering world-class technology and user-friendly services in 20 circles
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Board of Directors. Mr. Ratan N. Tata Chairman, Tata Sons Ltd. Mr. K. A. Chaukar Managing Director, Tata Industries Ltd. Dr. J. J. Irani Director, Tata Sons Ltd. Mr. I. Hussain Director, Tata Sons Ltd. Mr. N. Srinath Designation: Director, VSNL Mr. N. S. Ramachandran Director, Tata Teleservices Ltd. Mr. S. Ramadorai CEO & Managing Director, Tata Consultancy Services Limited. Dr. Mukund Govind Rajan Vice President, Tata Sons Ltd. Mr. N. Srinath Designation: Director, VSNL
Mr. S. K. Gupta Group Telecom Advisor
Mr. R. Gopalakrishnan Director, Tata Sons Ltd Mr. I. Hussain Director, Tata Sons Ltd.
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Telecom Sector in India, a brief
Telecommunication sector is a vital importance in economic development, is witnessing phenomenal technological progress. The sea change in economic policies of India is transforming Indian economy from a command and control to a liberalized and globalized market economy. The changing economic policy is having its impact on the telecom sector too. In pursuance of the Government's commitment to liberalization, the FDI ceiling in the telecom sector was enhanced from 49 percent to 74 percent in certain areas. The total FDI approved for telecom sector up to September 2005 was Rs 41,551 crores.
Investment Requirement (Figure in Rs. Crore) Year 2004 - 2005 2005 - 2006 2006- 2007 Public Sector 22,822 23,963 24,161 Private Sector 7,944 10,981 17,281 Rural Sector 8,520 9,210 11,010 Total Yearly 39,286 44,154 53,452
To increase the connectivity government has put the telecom sector into priority sector list after liberalization policy. Government has encouraged private participation in telecom sector along with BSNL, VSNL etc. to provide better service to the consumers. Due to this many private players including MNCs like AT&T, Hutchison, British telecom Motorola, Telstra etc, and big Industrial houses like, Reliance, Tata have entered this field as the consumers are unsatisfied with the DoT services the scope for the private players increased. India has the sixth largest Network in the world. Telecommunication has helped in developing India a leading Nation in the world.
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Telecom Sector Analysis
Although India's tele-density has improved from under 4% in March 2001 to over 15% at the end of September 2006, we are way behind other developing nations. The total annual telecom revenue is estimated to be over Rs 650 bn and the sector can broadly be divided into three segments basic telephony, cellular telephony and the Internet. The cellular telephony segment has emerged as the fastest growing segment in the Indian telecom industry. The mobile subscriber base (GSM and CDMA combined) has grown from 1.9 m at the end of FY00 to 130 m at the end of September 2006. A slew of tariff reduction in the past few years has helped the segment to gain in scale. The cellular segment is playing an important role in the industry by making itself available in the rural and semi urban areas where teledensity is the lowest. As far as the Internet services are concerned, India currently has a subscriber base of 6.9 m users. Of this, around 19% is accounted for by broadband users (>=256 kbps). The ARPU for this segment was Rs 210 at the end of FY06. PSU major, BSNL holds the top spot with a market share of 42%, followed by MTNL with a share of 12%,. This is followed closely by Sify, which ranks third with a market share of 11%. On the international basic telephony front, the end of VSNL's monopoly in 2002 brought three private players in the international basic telephony business and the immediate effect was the fall in tariffs. In the first six months only, the tariffs fell by 50% and the trend is likely to continue. With the most favored customer status given to VSNL by fixed line majors like BSNL and MTNL going away, the segment has been witness to fierce competition.
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ARPUs (Average Revenue per User) have been correspondingly declining quarter on quarter. The average industry ARPU has fallen from Rs. 375 for Sept 05 quarter to Rs. 347 for June 2006 quarter, a fall in ARPU of Rs. 28 per subscriber since Sept 05 (a decline of 7%). decline in ARPU has been accelerated by the recent marketing. It is also a function of the structure of the Indian mobility market. At 80%, the pre-paid segment completely dominates this Indian mobility market.
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The current VAS market is expected to grow by 60% for the next year and at the end of 2007 should be close to Rs 4560 crore. Overall the growth in 2007 will continue to be driven by Ringtone downloads and by games; the share of games in the overall pie is also expected to grow. Though the mobile subscriber base has grown by over 95% industry analysts believe that the relative growth in VAS revenues will be lower. As the current focus by mobile telephony operators is on adding subscribers, many low value users are now entering the category and are not likely to contribute significantly to the growth of VAS.
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A recent report by Merrill Lynch on Mobile Data identifies the key factors for the success of SMS: Adoption by the youth segment: The youth market is an early adopter and helps build scale and mass acceptance of new services. Pre-paid services: Pre-paids lower the cost of entry and help build scale for SMS services. Affordable service: The cost of messaging is significantly cheaper than per minute mobile calls and even when compared to paging, thus encouraging high volume usage. Common GSM platform: Given the larger base of subscribers, new services such as longdistance roaming could be developed. Calling Party Pays (CPP): CPP encourages use of messaging as users do not have to pay for incoming messages. In the US, two-way billing has slowed messaging as the receiver has to pay for receiving messages. CPP does not translate to lower revenues as incoming messages stimulate response and more traffic. Wide diversity of services: With a common platform and large subscriber base, a large variety of services have been developed, the most popular of which are consumer applications such as simple person-to-person messaging, notifications of voice and fax mail, unified messaging, ringtones, chat, information services, mobile banking and payment, and National and international roaming. SMS gross profit of about 90%: Margins on messaging are usually very high as there are low variable costs and these almost fall directly in the bottom-line.
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Porters Five Forces Analysis
Supply Intense competition has resulted in prompt service to the subscribers. However, smaller towns and villages continue to have waiting periods on account of non-availability of adequate infrastructure. Demand Given the low penetration levels in the country and continuously falling tariffs, demand will continue to remain higher in the foreseeable future across all the segments. Barriers to entry High capital investments, older and well-established players who have a nation wide network, license fee, continuously evolving technology and falling tariffs. Bargaining power of suppliers Improved competitive scenario and commoditization of telecom services has led to reduced bargaining power for services providers. Bargaining power of customers A wide variety of choices available to customers both in fixed as well as mobile telephony has resulted in increased bargaining power for the customers. Competition The entry of fourth cellular player and commencement of WLL services has resulted in intense competition in the bigger cities. Reducing tariffs will hurt the new entrants, as they will be unable to recover their high capital investments.
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Key Mobile Service Providers in India
Bharati Group Started in the mid 1990s, it is the largest integrated private sector telecommunications service provider in India. It has a presence over the entire country. Bharati Group was the first company to offer basic services and, national & international long distance telephony in India. Hutchison Group It is the 3rd largest GSM operator and is a part of Hong Kong based Hutchison Whampoa Group. It initially it began its operations in Mumbai Circle, and has gradually expanded across India. Reliance Infocomm Ltd Promoted by Reliance Industries Ltd, it offers mobile telephony services on the CDMA platform on a nation wide optical fiber cable network capable of supporting broadband services. TATA Teleservices Owned by TATA Group, it provides basic & wireless services on the CDMA platform. Bharat Sanchar Nigam Ltd (BSNL) It is a PSU, wholly owned by Department of Telecommunications. It is the Indias principal provider of local & domestic long distance telephony. It has established and well spread infrastructure of telephone exchanges.
Market Share & No. of Subscribers

Company Bharati Group BSNL Hutchison Group Reliance Group MTNL Market Share (%) 26.79 22.17 19.22 20.00 1.97 No of Subscribers (Lakhs) 106.00 88.20 76.26 98.64 7.80
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Segmentation of the Indian Mobile Consumer Market

With the growth in the no. of mobile phone users, several micro segments have also emerged lately, each with their own specific needs. The rationale behind the segmentation is to identify customers on the basis of their stage in life and hence, to tailor-make schemes for each customer segment. The different segments are explained below. Youth Over the years, service providers have started giving greater attention to this segment, as it has emerged as one of the biggest users of mobile phones. For the young, mobile phones are not just necessity, but rather an indispensable accessory. This segment particularly values prepaid schemes free SMS services. This segment is dynamic and keeps changing very frequently. Young Professionals People entering the workplace and thus moving out of the dependent bracket constitute this market segment. They generally prefer using post paid schemes with value added services like information. Small & Medium Enterprises This segment mainly consists of people who are switching over from landlines to mobile phones, seeking a cost advantage. The focus is on economy packages rather than value added services. Family This as segment consists of more number of dependents. These dependents are serviced by prepaid schemes. Geographically dispersed families tied by the same cellular service providers may get cost advantages in terms of lower pulse rates. Special This category includes a small but growing segment which requires largely customized services sought by celebrities, politicians, CEOs and the super rich.
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Customer
Youth (Age)
Men (15-18) Women (15-18) Men (19-23) Women (19-23)
Young Professionals
Female Jobber Shops Traders Small Service Small Factory Self Employed
SMEs
Special
Family
Very Rich Celebs Politicians CEOs
With Dependents
Men (30) Men (35) Women
Geographically Dispersed Families
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Research Work
1. Introduction to the Problem & Methodology 2. Research Design 3. Perceptual Mapping 4. Fishbein Multiattribute Model 5. Tabulation & Analysis 6. Findings. 7. Suggestions 8. Limitations & Further scope of this study 9. Bibliography 10. Annexure
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Introduction to the Problem and Methodology

Over the years the mobile usage has increased among this category of youths. Most students use pre-paid services. There are six mobile service providers present in this city. They are as follows 1. Airtel 2. BSNL 3. Hutch 4. Reliance 5. Spice 6. TATA Teleservices This study is undertaken to determine the perception of the youth in Belgaum about different mobile service providers. This is an exploratory study and has been carried out without any research hypothesis. The responses have been collected through questionnaires. All the mobile service providers mentioned above have been considered for this study.
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Research Design
Title Perception of Mobile Telephony among Youth A Study among the students of Belgaum
Objectives To know the importance assigned by the respondents to the factors namely Economy, Performance & Value Added Services. To ascertain the importance assigned to the subcomponents of each factor as mentioned below, to the brand they currently use. Economy Call charges SMS Rates Talk Time Roaming Charges Performance Network Coverage Voice Clarity Timely SMS Delivery Customer Care Value Added Services Free Numbers/SMS Offers Ring tones & downloads News/Sports updates Horoscopes & other services
To generate perceptual maps for Economy V/s Performance Economy V/s Value Added Services Value Added Services V/s Performance To understand the usage of services.
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Scope of Study Urban market of Belgaum Target Respondents Graduate & Post Graduate Students Sample size 150 respondents Data Collection Methods Primary Data through Questionnaire administered to the target respondents Secondary Data from journals, related reports etc. Data Analysis Tools
Average Composite Score Method
Perceptual Mapping Fishbien Multi-Attribute Model
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Perceptual Mapping
Perceptual mapping is a graphics technique used by marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition. Some perceptual maps use different size circles to indicate the sales volume or market share of the various competing products. Displaying consumers perceptions of related products is only half the story. Many perceptual maps also display consumers ideal points. These points reflect ideal combinations of the two dimensions as seen by a consumer. The next diagram shows a study of consumers ideal points in the alcohol/spirits product space. Each dot represents one respondent's ideal combination of the two dimensions. Areas where there is a cluster of ideal points (such as A) indicates a market segment. Areas without ideal points are sometimes referred to as demand voids.
Perceptual Map of Ideal Points and Clusters
A company considering introducing a new product will look for areas with a high density of ideal points. They will also look for areas without competitive rivals. This is best done by placing both the ideal points and the competing products on the same map. Some maps plot ideal vectors instead of ideal points. The map below, displays various aspirin products as seen on the dimensions of effectiveness and gentleness. It also shows two ideal vectors. The slope of the ideal vector indicates the preferred ratio of the two dimensions by those consumers within that segment. This study indicates there is one
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Perception of Mobile Telephony among Youth segment that is more concerned with effectiveness than harshness, and another segment that is more interested in gentleness than strength.
Perceptual Map of Competing Products with Ideal Vectors
Perceptual maps need not come from a detailed study. There are also intuitive maps (also called judgmental maps or consensus maps) that are created by marketers based on their understanding of their industry. Management uses its best judgement. It is questionable how valuable this type of map is. Often they just give the appearance of credibility to managements preconceptions. When detailed marketing research studies are done methodological problems can arise, but at least the information is coming directly from the consumer. There is an assortment of statistical procedures that can be used to convert the raw data collected in a survey into a perceptual map. Preference regression will produce ideal vectors. Multi dimensional scaling will produce either ideal points or competitor positions. Factor analysis, discriminant analysis, cluster analysis, and logit analysis can also be used. Some techniques are constructed from perceived differences between products; others are constructed from perceived similarities. Still others are constructed from cross price elasticity of demand data from electronic scanners.
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Fishbein Multiattribute Model

The cognitive component of the tripartite model is generally assessed by using a version of the multiattribute or Fishbein model:
n Ao = biei i=1
where: Ao = the overall attitude toward object o Bi = the strength of the belief that object o has some particular attribute i Ei = the evaluation of the goodness or badness of attribute i Note that the evaluative component serves as something of a weight. Attitudes toward the Behavior Attitudes toward the behavior are made up of beliefs about engaging in the behavior and the associated evaluation of that belief. For example, consider the purchase of a car, X. In tests of the model, subjects are asked to list their beliefs associated with buying the car. These beliefs are consequences of the action. One belief might be: "Buying car X will cost me $300 a month." Another belief might be "Buying car X will make me more attractive to the opposite sex." Each belief is then rated for the likelihood that engaging in the behavior will produce that consequence. The likelihood ratings are an index of belief strength. After subjects rate the probability of each belief's being true, they evaluate how good or bad this aspect is. A car payment of $300 might be rated as quite bad, while being attractive to the opposite sex might be quite good. These ratings (both belief strength and evaluations) are quantified on -3 to +3 or 1 to 7 scales. The belief strength and evaluation ratings are multiplied together for each belief and summed across beliefs to give a measure of attitude toward the behavior.
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Tabulation & Analysis

Current mobile connection Brand Airtel BSNL Hutch Spice Tata Tele Total No of users Percentage of Valid Percent users 40 5 80 20 5 150 26.7 3.3 53.3 13.3 3.3 100.0 Cumulative Percent 26.7 3.3 53.3 13.3 3.3 100.0 26.7 30.0 83.3 96.7 100.0
Users of Brands
5, 3% 20, 13% 40, 27%
5, 3%
80, 54% Airtel BSNL Hutch Spice Tata Tele
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Charts showing the mean of the ratings of all subcomponents of Economy, Performance & Value added services and their mean of respective brands. These values have been taken to construct perceptual maps, Fishbein Multi attribute model etc. Subcomponents of Economy Call Charges Airtel BSNL Hutch Reliance Spice Tata Tele Ideal 3.33 3.47 3.37 3.07 2.47 2.67 4.60 SMS Rates 3.40 3.17 2.83 3.13 2.40 2.90 4.50 Talk Time 3.63 3.70 3.63 2.97 3.00 3.07 4.53 Roaming Charges 3.57 3.73 2.70 3.17 3.13 3.27 2.93 Total 13.93 14.07 12.53 12.33 11.00 11.90 16.57 Avg 3.48 3.52 3.13 3.08 2.75 2.98 4.14
Sub components of Performance Network Coverage Airtel BSNL Hutch Reliance Spice Tata Tele Ideal 4.33 3.87 3.67 3.33 1.97 2.80 4.80 Voice Clarity 4.37 3.37 4.00 3.53 2.77 3.03 4.60 Timely SMS Delivery 4.30 2.83 4.33 3.63 2.70 2.97 4.40 Customer Care 4.10 3.10 3.47 3.17 2.70 2.70 3.83 Total Avg
17.10 13.17 15.47 13.67 10.13 11.50 17.63
4.28 3.29 3.87 3.42 2.53 2.88 4.41
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Sub components of Value Added Services Horoscop es Airtel BSNL Hutch Reliance Spice Tata Tele Ideal 3.43 2.67 3.83 3.00 2.67 2.47 4.70 News/ Sports 3.87 3.10 3.87 3.20 3.17 2.97 3.20 Ring Tones 4.13 2.87 3.97 3.47 3.40 2.63 3.03 Free Nos 3.80 3.27 3.80 3.00 3.57 2.83 2.10 Total 15.23 11.90 15.47 12.67 12.80 10.90 13.03 Avg 3.81 2.98 3.87 3.17 3.20 2.73 3.26
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Importance assigned by the respondents to the factors namely Economy, Performance & Value Added Services. Factors Economy Performance Value added services Mean of the Ratings 4.50 4.67 4.07 Mean Rank 2 1 3
From the above, table the respondents have ranked the Performance factor as important. This is followed by Economy & Value added services. The importance attached to sub components of each of the factors can also be seen Factors Economy Subcomponents Call Charges SMS Rates Talk Time Roaming Charges Performance Network Coverage Voice Clarity Timely SMS Delivery Customer Care Value added services Horoscopes News/Sports Ring Tones Free Nos Mean of ratings 4.60 4.50 4.53 2.93 4.80 4.60 4.40 3.83 4.70 3.20 3.03 2.10 Mean Rank 1 3 2 4 1 2 3 4 1 2 3 4
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Importance assigned to the subcomponents of each factor as mentioned below, to the brand they currently use.
Fishbein Multi Attributes Model for entire sample & all brands Factors Rating (e) Economy Performance Value Added Services Ao (e*b) 4.50 4.67 4.07 b1 3.48 4.28 3.81 Airtel e*b1 15.67 19.95 15.49 51.11 b2 3.52 3.29 2.98 BSNL e*b2 15.83 15.36 12.10 43.29 Hutch b3 3.13 3.87 3.87 e*b3 14.10 18.04 15.72 47.87 Reliance b4 3.08 3.42 3.17 e*b4 13.88 15.94 12.88 42.70 b5 2.75 2.53 3.20 Spice e*b5 12.38 11.82 13.01 37.21 Tata Tele b6 2.98 2.88 2.73 e*b6 13.39 13.42 11.08 37.89
This table shows Rating (e) for the factors assigned by the respondents. Rating (e) remains same irrespective of the brand. Next, bi is the ratings assigned based on the degree of the presence of the factors in particular brand. The values e*bi are the products of e and bi of the respective brands. The (e*b) is the sum of the various e*b values of that brand. If the Ao value is greater, then the brand is perceived to be superior over others.
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Fishbein Multi attributes Model for brand specific customers Airtel Rating (e1) Economy Performance Value Added Services Ao 4.38 4.63 3.63 b1 4.54 4.77 3.78 e*b1 19.86 22.06 13.71 55.63 Reliance Ratin g (e4) Economy Performance Value Added Services Ao 0.00 0.00 0.00 b4 0.00 0.00 0.00 e*b4 0.00 0.00 0.00 0.00 Rating (e5) 4.25 4.75 4.75 Spice b5 3.19 2.44 3.88 e*b5 13.55 11.58 18.41 43.53 Rating (e6) 3.40 3.60 3.20 Rating (e2) 3.60 2.80 3.20 BSNL b2 3.90 3.73 2.75 e*b2 14.04 10.44 8.80 33.28 Rating (e3) 4.56 4.69 4.06 Hutch b3 4.58 3.80 3.95 e*b3 20.90 17.80 16.06 54.75 Tata Tele b6 2.75 2.55 2.40 e*b6 9.35 9.18 7.68 26.21
Further the same model can be applied to know to what extent the respondents see strength of various factors in the brand they presently are with. For this the e value was calculated specifically for the individual brands. As a result, the Ao values improved over the previous case. This shows that the factors are better rated for particular brands they are using. The Ao value for Reliance could not be known, since there are no users of the brand. And Ao value of TATA Tele only, has not improved because the brand users are only 5.
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Perception of Mobile Telephony among Youth Perceptual Map of Economy V/s Performance
4.5
4.0
PERFORMANCE
3.5
3.0
2.5 2.6 2.8 3.0 3.2 3.4 3.6 3.8 4.0 4.2
ECONOMY
From the above map it is seen that TATA Teleservices falls in the 3rd quadrant. Its closest competitor is Spice. The rest of the competition falls in the 2nd quadrant. The 2nd quadrant is potent market in the youth prepaid category. The 1st and the 4th quadrant are free from players. But the 1st quadrant is unprofitable. And the 4th quadrant has no potential. Since Performance and Economy are ranked as 1st and 2nd respectively, the market in the 4th does not exist.
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Perception of Mobile Telephony among Youth Perceptual Map of Economy V/s Value Added Services
4.0
3.8
VALUE ADDED SERVICES
3.6
3.4
3.2
3.0
2.8 2.6 2.6 2.8 3.0 3.2 3.4 3.6 3.8 4.0 4.2
ECONOMY
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Perception of Mobile Telephony among Youth Perceptual Map of Performance V/s Value Added Services
4.0
3.8
VALUE ADDED SERVICES
3.6
3.4
3.2
3.0
2.8 2.6 2.5 3.0 3.5 4.0 4.5
PERFORMANCE
Similarly from the maps of Economy V/s Value added services and Performance V/s Value added services, Tata Tele falls in the 3rd quadrant. Spice is again seen as the nearest competitor.
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A ir t e l
BSNL H u tc h R e lia n c e S p ic e T a t a T e le
Id e a l
Talk Time Roaming Charges Network Coverage Voice Clarity Timely SMS Delivery Customer Care
SMS Rates
Call Charges
Horoscopes
Econom y
P e r f o r m a n c eV a lu e A d d e d S e r v ic e s
News/Sports
Ring Tones
Free Nos
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Perception of Mobile Telephony among Youth Unlike as in the 2 dimensional maps, here all the brands are compared on all the subcomponents. Tata Teleservices is performing poor in all the subcomponents. Spice is seen to be the nearest competitor
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Perception of Mobile Telephony among Youth Understanding the Frequency of usage of services Respondents were asked to rank the frequency of usage on a scale of 1 to 5, 1 being Most frequent & 5 being Least frequent. Each of the intervals was given the appropriate weightage. These weightages were multiplied with the respective no. of responses for each of the services. Later their products were added to get Composite Score and Average Composite Score. The service with highest Avg Composite Score is used most frequent. The calculations can be seen in the below tables. No of responses (r) Some what frequent Moderate Most Frequent Least frequent 1 0 140 0 0 10 8.60 1.27 3.93 6.80 4.40
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Weightage (w) (Multiplying Factor) Local SMS International Calls/SMS National SMS Local Calls STD Calls
9 125 0 0 25 0
7 20 5 15 100 10
5 5 0 40 10 95 Composite Score * w) r 0 1290 190 590 1020 660
Respective no. of responses (r) * Respective Weightages (w) Local SMS International Calls/SMS National SMS Local Calls STD Calls 1125 0 0 225 0 140 35 105 700 70 25 0 200 50 475 0 15 285 45 105
140 0 0 10
Not so frequent 3 0 5 95 15 35
Avg Composite Score r * w)/150
Findings
1.
Of the three factors considered for the study, Performance & Economy are ranked 1 & 2 respectively, on the scale of importance. This can also be seen in Fishbein Multiattribute Model
2. Among the 3 factors, sub components namely Call Charges, Network Coverage, Horoscopes are ranked 1. 3. Airtel & Hutch have score highest in the Fishbein Multiattribute Model. Their scores are also highest in Performance & Economy as compared to all the brands. Spice & Tata Tele have score lowest respectively. 4. The brands that have scored high in the calculation of entire sample have also scored high, when responses are considered only to the specific brand users. 5. From the perceptual maps, it is visible that TATA Tele and Spice are close competitors. The rest of the competition is ahead of these two players. 6. In this segment, Local SMS & Local Calls are frequently used services. Their respective Average Composite Scores are 8.60 & 6.80 respectively
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Suggestions
1. TATA Tele is currently playing low in the youth prepaid market. As this segment will see the growth in the coming years, the company should introduce such plans which can compete on Performance & Economy Factors. 2. As reliance & BSNL are the players in the economy market, TATA Tele should try to convert the present BSNL & Reliance users to its side. As seen from the study, these two players have significant share in the market in question. 3. As Reliance is also a CDMA player, it will be comparatively easy for TATA Tele to enter its market. 4. It is evident from the secondary data that the market for Value added services will decline. There fore TATA Tele should keep itself low in its VAS.
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Limitations & Further scope of this study

1. As the subscriber base of TATA Tele in the youth prepaid market is negligibly low, the responses may not be sufficiently support purpose of the study. 2. The fact that the users have more than one connection is neglected in this study. 3. For the like this, 150 sample size may not give the clear picture of the perception of the users. 4. Frequently changing mobile service plans may have the implications on the responses. 5. This study methodology can also be extended to other consumer markets.
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Bibilography
1. TATA Teleservices Ltd information

www.tatateleservices.com
2. Indian Telecom Sector

www.sykronix.com
3. Telecom Sector Analysis & Porters Five Forces Analysis

www.equitymaster.com
4. Mobile Value Added Services in India

www.imami.com
5. Current Trends in Cellular Services

www.fhwa.dot.gov
6. The success of SMS

www.emergic.org
7. Perceptual Mapping
www.wikipedia.com
8. Fishbein Multiattribute Model

www.personal.kent.edu
9. Marketing Research Measurement & Method

Sixth Edition, Prentice-Hall of India Pvt Ltd Donald S. Tull & Del I. Hawkins
1 Advertising Management 0. Fifth Edition, Prentice-Hall of India Pvt Ltd
Rajeev Batra, John G. Myers & David A. Aaker
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Annexure
1. While choosing the mobile service provider following are the factors which I consider (Please tick) Most Important i. Economy ii. Performance iii. Value Added services 2. While choosing the mobile service provider following are the Economy attributes which I consider (Please tick) Most Important i. Call charges ii. SMS Rates (Local, National, International) iii. Talk Time and validity on recharge iv. Roaming Charges 3. While choosing the mobile service provider following are the Performance attributes which I consider (Please tick) Most Important i. Network Coverage ii. Voice Clarity iii. Timely SMS Delivery iv. Customer Care 3. While choosing the mobile service provider following are the Value Added Services attributes which I consider (Please tick) Most Important i. Free Numbers/SMS Offers ii. Ring tones & downloads iii. News/Sports updates iv. Horoscopes & other services Important Do not know Unimportant Least Important Important Do not know Unimportant Least Important Important Do not know Unimportant Least Important Important Do not know Unimportant Least Important
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5. Rate the following mobile service providers on the different parameters of Economy, on a scale of 5 to 1, 1 being the lowest an 5 being the highest (Please tick) Call Charges Airtel BSNL Hutch Reliance Spice Tata Tele 5 5 5 5 5 5 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1 5 5 5 5 5 5 SMS rates 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1 Talk time & Validity 5 5 5 5 5 5 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1 5 5 5 5 5 5 Roaming charges 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1
6. Rate the following mobile service providers on the different parameters of Performance, on a scale of 5 to 1, 1 being the lowest an 5 being the highest (Please tick) Network Coverage Airtel BSNL Hutch Reliance Spice Tata Tele 5 5 5 5 5 5 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1 5 5 5 5 5 5 Voice Clarity 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1 5 5 5 5 5 5 Timely SMS Delivery 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1 5 5 5 5 5 5 Customer Care 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1
7. Rate the following mobile service providers on the different parameters of Value Added Services, on a scale of 5 to 1, 1 being the lowest an 5 being the highest (Please tick) Horoscopes & other services Airtel BSNL Hutch Reliance Spice Tata Tele 5 5 5 5 5 5 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1 News/Sports updates 5 5 5 5 5 5 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1 5 5 5 5 5 5 Ring tones & downloads 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1 Free Numbers/SMS Offers 5 5 5 5 5 5 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1
8. Current mobile connection (please tick) Airtel BSNL Hutch Reliance Spice Tata Tele
9. Please rank your usage of mobile phones from 1 to 6, where 1 is most frequent and 6 is least important (Please tick) i. Local SMS ii. International SMS iii. ISD Calls iv. National SMS v. Local Calls vi. STD Calls
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A Project Report On Perception of Mobile Telephony Among Youth

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Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Mr. S. K. Gupta Group Telecom Advisor

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Market Share & No. of Subscribers

Perception of Mobile Telephony among Youth

Segmentation of the Indian Mobile Consumer Market

Perception of Mobile Telephony among Youth

Very Rich Celebs Politicians CEOs

Men (30) Men (35) Women

Geographically Dispersed Families

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Introduction to the Problem and Methodology

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Average Composite Score Method

Perceptual Mapping Fishbien Multi-Attribute Model

Perception of Mobile Telephony among Youth

Perceptual Map of Ideal Points and Clusters

Perceptual Map of Competing Products with Ideal Vectors

Perception of Mobile Telephony among Youth

Fishbein Multiattribute Model

Perception of Mobile Telephony among Youth

Tabulation & Analysis

80, 54% Airtel BSNL Hutch Spice Tata Tele

Perception of Mobile Telephony among Youth

17.10 13.17 15.47 13.67 10.13 11.50 17.63

4.28 3.29 3.87 3.42 2.53 2.88 4.41

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

VALUE ADDED SERVICES

VALUE ADDED SERVICES

2.8 2.6 2.5 3.0 3.5 4.0 4.5

Perception of Mobile Telephony among Youth

5 5 0 40 10 95 Composite Score * w) r 0 1290 190 590 1020 660

Avg Composite Score r * w)/150

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Perception of Mobile Telephony among Youth

Limitations & Further scope of this study

Perception of Mobile Telephony among Youth

1. TATA Teleservices Ltd information

2. Indian Telecom Sector

3. Telecom Sector Analysis & Porters Five Forces Analysis

4. Mobile Value Added Services in India

5. Current Trends in Cellular Services

6. The success of SMS

8. Fishbein Multiattribute Model

9. Marketing Research Measurement & Method