Symbiosis Institute of Management Studies Project Report

DOTS Mobile Marketing Strategy

Submitted by
Krunal Sanghavi C055 2nd Year PT MBA 2010-13 Specialization: Marketing

EXECUTIVE SUMMARY
Cellular telephones have revolutionized the communications arena, redefining how we perceive voice communications. Traditionally, cellular phones remained out of the hands of most consumers due to their high cost. As a result, cell phone carriers have invested time and resources into finding ways to give the systems higher capacity and thus lower cost. Cell systems are benefiting from this research and starting to develop into large-scale consumer products. Today, cellular phones are truly consumer electronics devices with over 59 million subscribers. The Nokia Bowl and Qualcomm Stadium are further evidence of the idea that cell phones are consumer electronics devices. Cell phones have ceased to be an exclusive status symbol of highpowered lawyers and are now in the hands of millions of consumers. DOTS Cellular Phones, Inc. is taking advantage of an opportunity to become a highly distinguished and recognized leader in the cellular communications industry. It is the goal of this company to become established as the leading distributor of wireless communications services in the metro area. In order to achieve this goal, DOTS Cellular Phones' critical success factors will be to identify emerging trends and integrate them into the company operations, respond quickly to technology changes/be there early, provide high-quality services, invest time and money in marketing and advertising, expand into specialty markets, and stay ahead of the "technology curve."

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Table of Contents
INTRODUCTION .........................................................................................................................................................4 PROJECT OBJECTIVE ................................................................................................................................................5 DOTS MOBILE COMPANY........................................................................................................................................6 INDIA STRATEGY ......................................................................................................................................................7 RESEARCH METHODOLGY, DATA COLLECTION AND DATA ANALYSIS ....................................................9 SEGMENTS OF MOBILE .......................................................................................................................................... 11 Types of mobile phones ......................................................................................................................................11 THE INDIAN MARKET OPPORTUNITY ................................................................................................................ 12 Mobile Retail in Indian Market ...............................................................................................................................13 Future Volumes of Mobile Retail ............................................................................................................................14 PEST ANALYSIS OF MOBILE ................................................................................................................................. 23 PORTERS 5 FORCES MODEL ................................................................................................................................ 26 COMPETITIVE ANALYSIS WITH MARKET ......................................................................................................... 29 CONSUMER NEED ANALYSIS ............................................................................................................................... 37 CONSUMER SEGMENTS.....................................................................................................................................38 BUYING BEHAVIOUR OF MOBILE CUSTOMERS ..........................................................................................41 OPPORTUNITY FOR MOBILE BUYERS ...........................................................................................................42 INDIAN MARKET ENTRY STRATEGY ................................................................................................................. 44 TARGET SEGMENTS OF CUSTOMERS FOR MOBILE ...................................................................................45 DEMOGRAPHICS OF MOBILE CUSTOMERS ..................................................................................................48 COST DECISION IN MOBILE PHONES .............................................................................................................49 POSITIONING OF MOBILE COMPANY ................................................................................................................. 50 SWOT ANALYSIS .................................................................................................................................................... 51 CAPITALIZING ON STRENGTHS ........................................................................................................................... 55 Retail .......................................................................................................................................................................55 Insurance .................................................................................................................................................................55 High Technology .....................................................................................................................................................55 MVNO CONCEPT .................................................................................................................................................56 GOOD BRAND RECALL ......................................................................................................................................60 RECOMMENDATION ............................................................................................................................................... 62 CONCLUSIONS ......................................................................................................................................................... 63 BIBLIOGRAPHY ....................................................................................................................................................... 64

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CHAPTER 1 INTRODUCTION
Mobile phones today have moved beyond their fundamental role of communications and have graduated to become an extension of the persona of the user. We are witnessing an era when users buy mobile phones not just to be in touch, but to express themselves, their attitude, feelings & interests. Customers continuously want more from their phone. They use their cellular phones to play games, read news headlines, surf the Internet, keep a tab on astrology, and listen to music, make others listen to their music, or check their bank balance. Now to analyse why the growth graph seems to be at an all time high means to understand the buyers psyche. As the economic stability of the country is growing so is that of an individual. Income patterns are rising and employees are moving up the corporate ladder. They want to be seen with better handsets as there is a quaint feeling that the mobile should match the designation or just make a status statement with a smart and expensive phone. Hence with such attitudes ruling the market everyone wants to stand out with the handset they own.

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CHAPTER 2 PROJECT OBJECTIVE

There exists a vast world beyond voice that needs to be explored and tapped and the entire cellular industry is heading towards it to provide innovative options to their customers. Spoilt by choice, the mobile phone subscribers are beginning to choose their operators on the basis of the value added services they offer. The increased importance of VAS, MVNO has also made content developers burn the midnight oil to come up with better and newer concepts and services. The mobile subscriber base is growing at a scorching pace in India; India is now the 5thcountry in the world to have crossed the 100 million mark in subscriber base and has in the last two months become the fastest growing mobile market in the world. As average revenue per user decrease from voice drops, and voice becomes commoditized. India has come in a close second in the sale of mobile phones in the year 2006. China has led the race of mobile sales being the highest in the world. In India however the GSM phones rule over the CDMA handsets. Leading the categories are Nokia, Samsung, Sony Erickson while Reliance takes a large size share in the corporate segment. Subscribers in India are basking in the glory of the ever increasing number of subscriber patronage. Around 14.95 crore new subscribers were listed up from 8.5 subscribers in 2005. A gargantuan number of around 5 million customers enroll each month giving the network providers a huge profit margin. According to the increasing number the subscribers list is said to hit 48 crores by 2011 that is an approximate of 50 crore. Wow, this is some industry that is climbing the path no matter what comes in its way.

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CHAPTER 3 DOTS MOBILE COMPANY

DOTS Mobile sells mobile handsets based primarily on Global System for Mobile Communications, or GSM. DOTS Mobile has partnered with most advanced mobile phone R&D and output capabilities. It predominates the technology of GSM, GPRS, CDMA mobiles and value-added services, of which technology 3Gs GSM and CDMA are in the same phase with the advanced worldwide technology. DOTS Mobile corporate spirit is For INDIA, for world. In the era that information technology fulfilled with humanity, DOTS Mobile firmly believes: only when being national can be international. Based on the deeply insight of Indian civilization and lifestyle, DOTS Mobile perfectly mixes the cutting-edge technology with Indian peoples taste and preference through the forward looking strategic vision. Our mission is to use the worldwide technology to serve Indian consumers. Our technology is in the same phase with the advanced worldwide technology. We will utilize our excellence and diligence to create a refulgent future! When we start a new venture, we base it on hard research and analysis. Typically, we review the industry and put ourselves in the customer's shoes to see what could make it better. We ask fundamental questions: Is this an opportunity for restructuring a market and creating competitive advantage? What are the competitors doing? Is the customer confused or badly served? Is this an opportunity for building the Dots brand? Can we add value? Will it interact with our other businesses? Is there an appropriate trade-off between risk and reward?

Reference: http://www.dotsmobile.in/AboutDotsMobile.aspx

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CHAPTER 4 INDIA STRATEGY

When we start a new venture, we base it on hard research and analysis. Typically, we review the industry and put ourselves in the customer's shoes to see what could make it better. We ask fundamental questions: Is this an opportunity for restructuring a market and creating competitive advantage? What are the competitors doing? Is the customer confused or badly served? Is this an opportunity for building the Dots brand? Can we add value? Will it interact with our other businesses? Is there an appropriate trade-off between risk and reward? Whilst achieving a low operating cost per customer through Sharp focus on Indias top youth markets Fewer, stable propositions with low support and service costs Imaginative, eye-catching advertising & PR that gets youth talking A lean, enthusiastic team supported by simple processes
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Delivering imaginative solutions that offer Value for money. Great handsets at great prices Personalized customer care Try before you buy Real conversations: no scripts End-to-end ownership of problems: same Champ call-back Champ empowerment: authorized to resolve issues on the spot A real returns policy Shop in Shop and Kiosks Non exclusive, extensive coverage, lower costs The one commonality all of the retailers share is they are places where teens shop, because thats core market.

Reference: http://eurologix.eu/about_company.html

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CHAPTER 5 RESEARCH METHODOLGY, DATA COLLECTION AND DATA ANALYSIS

The research methodology was primarily based on collecting data about the MOBILE & MVNOindustry of India from various sources and then compiling them with the trends in retail sector in supply chain management. I went through different websites on Mobile retail and supply chain in retail from library. My aim throughout this research was to find ways to create value in the marketing of the Mobile Handsets & GSM operators in India and how we can provide better quality and service to the customers by improving the methods of logistics, cost & delivery.

DATA COLLECTION In qualitative research, the researcher is the primary data collection instrument. Qualitative research involves data collected from participant observations, interviews, questionnaires, phone calls, focus groups etc. Interviewing, focus groups, and participant observation are common modes of qualitative data gathering. Data collected from the competitor brand like Micromax. Previous launch of Mobile phones also plays an important role as it is practically implemented. DATA ANALYSIS
Qualitative data analysis contains reviewing, summarizing, generalizing and interpreting data in an appropriate and accurate way. It is to describe and explain the phenomena of social worlds being studied. There are two different analytical procedures: Meaning and discovery-Focused approaches. Meaning-focused approaches emphasize meaning comprehension. In other words, try to understand the subjective meaning of experiences for the participants, instead of placing those meanings into researchers own conceptions. Discovery-focused techniques aim to establish patterns and connections among elements of data. However, no matter which procedure is used, it is essential to apply an effective system for retrieving data because of the identity of qualitative data analysis, which is exploring data progressively. Clustering was the method used data analyzes, In general the following methods were used: Group Discussion: A general discussion was done in a group regarding the features do the people want in a mobile phone? Does cost play an important role in the success and failure of mobile phones in INDIA? Service plays an important role in the building of brand. Observation: the help of social networking sites like www.toostep.com were the discussion on mobile phone is done and the industry experts advice on it. Some of the successful brands like Micromax, Intex mobiles their marketing strategy was studied. DOTS MOBILE Page 9

Personal Interview: which included from youth to old age their requirement and how we can cater into it? The questions included were in the following format: 1.) Have you used mobile phones? 2.) What excites you about mobile phones? 3.) What are the features you require in mobile? 4.) Is it 3G included in it? 5.) Have you heard about dual sim mobiles with TV in it? 6.) Is price the main factor while buying mobile? 7.) How many days you upgrade your mobile phone? 8.)Is Battery a issue? 9.)Is service a issue in mobile?

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CHAPTER 6 SEGMENTS OF MOBILE

Types of mobile phones Smart Phone Smart phones are high specification phones that operate like miniature computers. They can usually do tasks like connect to the internet and receive emails. Recent examples of smart phones are the Apple phone, Blackberry and Google Android phones. Camera Phones Camera phones come with a built in camera. Some new camera phones are reaching the 12 megapixel mark, though a standard model will frequently between 2 and 8 megapixels. Music Phones Music phones will ideally have a good mp3/aac audio player and enough memory to hold a reasonable amount of songs. Always make sure that your phone has plenty of onboard/included memory, or is upgradable to have more memory via an SD/memory card slot. Ideally you will want at least 1-2gb, though it is possible to get up to 16gb. 3G Phones Phones designed to work on the 3G system. 3G opens up faster communication and browsing speed. Phones frequently feature internet browsing and video call.
Reference: http://types.org.uk/phones/mobile-phones/types-of-mobile-phones/

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CHAPTER 7 THE INDIAN MARKET OPPORTUNITY

India is one of the fastest growing mobile markets in the world and with that brings immense mobile marketing opportunities for branded consumer companies. As Indian operators increase their sophistication and gain a better understanding of the demographics and usage statistics of their subscriber base, a scenario will emerge where the operator will sell this information to marketers. This is no different from a television network or radio station collecting ratings data and viewing habits for its programming, which enables it to sell commercial time for sponsors. The continued success of SMS marketing in India depends on the willingness of the Indian marketing and advertising establishment to adopt wireless as an accepted vehicle for campaigns. SMS Marketing is only the beginning and as operators upgrade their network to 2.5G/3G, MMS will allow marketers to develop even more sophisticated campaigns

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Mobile Retail in Indian Market

The retail segment of the fastest growing Mobile market in the world has touched USD 16 Billion (Rs75, 000 Crores) and rising 20% YoY. What does Mobile retailing include? Mobile retailing is not just selling fancy handsets and accessories. The big chunk of it is selling pre-paid currency. Approximately 80% of the subscribers are in the category of pre-paid.(Source: Bharti Airtel Limited, Q2 Report). Surprisingly, the Indian consumer electronics market is estimated at mere $5.5 Billion (Rs25, 000 crores) With such a huge potential for the mobile market, several players are entering the organized mobile retailing sector. Mobile NXT was the first one to enter directly into the business without any retailing background; Mobile Magic was a state wide distributor and opted for its own branding. Universal Telecom was a distributor too and opted to go for online mobile retailing. ConvergeM and MBazaar are owned by Indias famous retailer and are also planning for concept mobile stores. Others in line to get a slice of Mobile retail market are Essar Telecom, ITC Limiteds eChoupal for rural mobile marketing and DCM Shriram through their Hariyali Kissan Bazaar once again targeting the rural Indian consumer. The concept of branding and retailing has caught every faction of the Indian consumer market. After Bangalore based Mobile NXT, Pantaloon quietly ventured setting up ConvergeM mobile retail chain under the brand name M Bazaar, M Port and Gen M. It is now Essar groups turn to enter cell retailing. Esaar Telecom has done due diligence in association with KSA techno park and is willing to invest up to Rs3000 crores in 3 years. The company is planning to setup 1,000-2,000 sq ft stores, which will be one-stop shops for customers mobile needs. They will offer telecom handsets, connections, recharge vouchers, mobile accessories, after sales services, facilities for bill payment, gaming, mobile entertainment options, repairs and refurbishment. All these stores means an end to your local mobile retailer .After adding currency to my mobile, if I want the latest Halo-2 game do I need to look for the game retailer? Doesnt make sense. Companies such as Essar with deep pockets should have plans to scale up their operation to the size of Best Buy or Circuit City which is so essential for the Indian consumer.

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Future Volumes of Mobile Retail

Its not difficult to see whats keeping Sanjeev Mahajan, CEO, Hotspot, the mobile retail chain of Spice Corp, on his toes. In the face of stiff competition from rival retail chain brands Mobile Store, Subhiksha Mobile and M Bazar, to name a few in the telecom products segment, hes turning aggressive to secure a leadership position for Hotspot. So the over two-year-old chain is targeting 1,000 mobile phone and accessories outlets under the Hotspot brand name by the end of the year. We are opening an outlet a day and we already have 325 Hotspots in important cities, says Mahajan. Interestingly, though, Mahajan is not the only one thinking big. Subhiksha Trading Services Managing Director R Subramanian also intends to double his Subhiksha Mobile stores both in the standalone format and the shop-in-shops from the current 740 outlets. In the last one year, Subhiksha Mobile has grown much larger than the others (read rivals) not only in terms of the number of stores but also in terms of volumes as well, to become the largest telecom products retailer, claims Subramanian. Clearly, the mobile handset market is buzzing with new branded retail chains such as Reliance and Aditya Birla Group entering the fray and the existing chains expanding their footprint. Take Pantaloon Retails JV with Axiom of Dubai, for instance. The company is re-branding its standalone retail chain Mport to Axiom stores, which is among the largest telecom products chain in West Asia. The mass market products will continue to be sold under M Bazar, its shop-in-shops at the Big Bazar outlets, while the lifestyle products will find their way into Axiom. By the end of the year, M Bazar will grow from 100 to 428 outlets, while the company will open 35 Axiom stores by then.
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The lure of the telecom products market is easy to explain. Indias cell phone market adds eight million subscribers every month. The replacement market is close to 55 per cent already (in Delhi, the figure is 60 per cent). A BCG research says that by 2010, Indias replacement market will be 70 per cent. Put together, the size of the handsets market is about Rs 70,000 crore (Rs 700 billion) a year. Commenting on why Pantaloon entered telecom retail, its spokesperson says: It is a bulk volume business. The margins are made on total volumes sold. Needless to say, the opportunity is enormous. The industry has been dominated by the unorganised players nearly 500,000 mom and pop stores sell phones, recharge cards and accessories. Whats the USP of the branded chains that are rolling out nationally, compared to the neighbourhood shopkeeper stocking mobiles? Their inventory is limited while we will stock phones priced between Rs 1,000 and Rs 50, 000, points out Mahajan of Hotspot. Besides, the branded chains promise high-quality service as they enter full-scale servicing tie-ups with different phone brands. Hotspot hopes to beat competition by offering hi-end cameras, iPods and laptops at its 450 sq feet to 600 sq feet showrooms. This is in addition to mobile phones, memory cards, pouches and other accessories that it already stocks. On the cards are other VAS (value-added service) products. While music videos were introduced two months ago, a full-length feature film on a chip will be the next big thing at Hotspot. You could watch this film on your mobile screen. And the USP is that we are offering legal content, says Mahajan. Subhiksha, meanwhile, is offering only the lowest and best value on all handsets at its stores. Subramanian says that the share of sale of VAS products and personal electronics in its portfolio is low but over the next three to six months we hope to make significant progress in this direction. Organized retail, which started off with a market share of less than 1 per cent two years ago, now enjoys 15 per cent share. This will swell to 40 per cent in another two to three years. Of course, once FDI in retail is cleared by the government, Sanjeev Mahajan job could only get tougher with expert international retailers such as Crazy Jones and Eurosat setting their foot in India.

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Potential of Hand Set Retail

The completion of this acquisition represents a significant step for us in our growth strategy. Global Access has been a strong regional brand. This acquisition will bring in presence, expertise and experience of their retail business in the region and unleash a force multiplier that generates value for the business as well as for the customer across segments. This is but a step towards a larger goal. Spice Retail also has plans aiming to reach its audiences in many more ways than just mobility and IT products. It will soon be adding products in categories like imaging, gaming etc which will be supplemented by various other innovative services & products. This acquisition along with our recent acquisition of Cellucom aims to improve the retail capillarity of the organization.It also reaffirms our commitment towards the sector and helps us boost our customer profile with an increase in reach and enhancement of the product portfolio. added Mr. Dilip Modi. However, the purchase price of the transaction was not disclosed. The completion of this acquisition represents a significant landmark for us in our Endeavour to create value accretion across different business verticals within the telecom industry, founder of Global Access Siraj Fulara said. Going forward, we will continue to connect with Indias booming telecom market by providing consumers with affordably stylish cube mobile handsets through our distribution arm, Telelogix.

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We see huge potential for growth in the mobile handsets market in India, and with cube boasting of several consumer- friendly and next generation features, we believe we are well placed to grow rapidly in the dual GSM mobile handset manufacturing market, Global Access co-founder Mohsin Fulara said. [The original story published had stated incorrectly that Global Access acquired Spice Retail. The story was incorrect. Above new item is the corrected version] Spice Retail Ltd today announced acquisition of Global Access, a Karnataka-based retail chain. This acquisition will help Spice Retail to tap the state as well as the regional market. Commenting on the acquisition Mr. Dilip Modi, Managing Director, Spice Televentures said, Retail in India is complex; and we being a pioneer in mobile retailing in the country realise its nuances.

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FUTURE TRENDS IN MOBILE

With every major mobile phone release, users are treated to an ever-expanding list of advanced features. Some are more useful than others, but they represent an industry that is always on the move. The next big feature to make our lives easier is usually only an upgrade away but we've decided to gaze a little further into the future as we anticipate where manufacturers will go next with their products. Here is our top 10 future Smartphone features. Projection We don't have to look too far into the future for this one, with Samsung's Beam handset already offering projection, albeit in a fairly primitive form and more advanced Android based handsets on the horizon. Basic or not though, the Beam is a ground breaking device, and in projection we see a feature which we think will become a staple in future releases. Being able to sit down in a conference room and simply view a presentation or video without waiting for laptops to be plugged in or faulty cables to be swapped out would be breath of fresh air for most business users. As technology advances we will see the extension of projection into the video conferencing environment and others. Looking further into the future we should see mobile devices packing holographic projection. The technology, which is in its infancy currently, offers a full three-dimensional rendering of the subject and would be invaluable to any designer or architect. People in the medical profession
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may have to wait a while longer for full body holographics but it's certainly not a flight of fancy to assume it will arrive. Advanced imaging Every new camera phone released is touted as a 'compact camera replacement' but with the advancement made in the camera industry they seldom live up to their hype. We're set to get a glimpse of what's in store though with the upcoming release of Nokia's N8 Smartphone, which carries an eight megapixel sensor and Carl Zeiss optics. We've also seen huge advances in video recording, with Samsung's Galaxy S and Apple's much vaunted iPhone 4 offering 720P capture, with HTC's Desire HD also entering the fray with 720P HD video capability. As good as these features are, they aren't good enough to usurp a compact DV or still camera and the future may well see a further coming together of big names in the photography and mobile world as industry leaders in both fields realise that people don't want to carry a camera and a mobile device. So expect to see 12 megapixels and 1080P capture, huge on-board storage and even full editing on the hoof with Photoshop and Premier among the software being used. Augmented reality Augmented reality is the future. As end-users we've had our initiation with Google's 'Goggles', 'Layar', 'Wikitude' and 'Last Minutes Nru', among others, but the flow of AR technology into the marketplace is only just beginning. We can look forward to true location awareness, enabling clients to view couriers progress in real-time, AR for emergency services, showing the location of victims of crime or accident by their cellular signal and many other greatly useful applications to make our professional lives more efficient and safer. Aside from general advancement in AR apps, we can also expect a range of devices offering AR replacements for traditional methods of human input, ranging from projected keyboards and touchpads to eye-dialing your phone via a heads-up display while driving. AR is also likely to fill the void between 2D projection and holographic, allowing users to conference and work in a CG environment, sharing information and tools and interacting via virtual controls and workspaces. The application of AR technology will go beyond smart phones though. Indeed, expect to see augmented advertising hoardings and other interactive media as the norm in the coming years. Tablets like Dell's Streak and Nokia's N900 we've been given almost complete desktop functionality in the palm of our hand. The successors to those devices will be empowered by multi-core processors, advanced graphic processing units and more RAM and ROM than you can shake a stick at. Enabling users to carry
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out every task they could want on their handheld, and de-centralizing the workplace in ways not seen since the introduction of the World Wide Web. Expect to see super-mobile, super-powerful devices that you can plug into your display when you're in the office and work on when you're on the move. In the more immediate future we can expect to see Nokia's follow up to the geek-friendly N900, sporting ARM's latest Cortex-A9 processor and a lush capacitive touch screen, and no doubt the next generation of Apple's iPod, which also runs on hardware provided by the British chip manufacturer. The iPad may have divided the community like the business equivalent of marmite, but it certainly heralded a new approach to super-mobile computing which we feel will be the standard in years to come. Mobile cloud Along with the power and flexibility of tomorrow's devices we should see a leap to cloud computing in the mobile market. With smaller, more powerful devices having the lion's share of their hard work done remotely, users could expect to have all the power that they need without having the suit ripping form factor to go with it. Also, the de-centralized storage of documents, photographs and other data would enable users to work seamlessly with colleagues and even share devices without loss of data. The removal of brand-based constraints from applications would also be a firm benefit with mobile cloud implementation, any device, any app; so long as it's registered on the network. We believe the mobile cloud would also see the distillation of mobile operating systems, leaving users with a quicker, more labor efficient experience when working on their devices. The mobile cloud is already in use in certain applications such as Google's Gmail and Apple's Mobile Me, but with more extensive usage network infrastructure would have to be fast and stable enough to support the high amount of data transfer needed to make such a concept viable which leads us on to our next point. 4G and beyond The arrival of 4G is imminent and with it comes a new array of functionality and speed to enhance our mobile lives. Higher specked hardware and improved network infrastructure will provide businesses with a fast and stable data connection, and the next generation of applications, some of which we have already touched on, will run smoothly and - hopefully without a hiccup. Keeping you connected is only part of it, the higher speeds afforded users by 4G technology will allow the delivery of high-quality media to clients, enabling you to get your marketing materials out into the world that much faster.

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With a new mobile generation coming around roughly every 10 years, we can expect to see 5G implemented fully by 2020, and following current projections will likely see peak data speeds of 1Gbps. Biometrics As mobile devices evolve into more than just communications tools, security becomes ever more important. Priceless data has famously been left on trains and in cars and the potential loss of revenue from such an oversight could be huge, not to mention the embarrassment to your company. Enter biometric security. Fujitsu has already begun rolling out fingerprint based biometric security across some of its range and in the near future voice or even inner-ear activated devices will be widely available, allowing corporations to protect their data fully when it's not in use. Other uses could include individual workspaces within a single device, enabling a user to pick the device up and have his or her data downloaded automatically, once their identity has been confirmed a function which could prove invaluable with shared hardware. As our mobiles become less exception and more norm the concept of all forms of necessary data being held within our device is gathering momentum. Our credit cards, passports, insurance documents etc. could all be carried around with us in our hip pocket, securely protected and unable to be used without our presence. Operating systems Current mobile operating systems are almost unrecognizable when compared to the basic user interfaces of a few years a go. With every release Google's Android is becoming faster and more stable and Apple strives to add more powerful features to its cleanly designed iOS. The divide between mobile OS and desktop OS is narrowing though and in the future we expect to see much closer integration between the two. Following the lead of the MeeGo project we're moving toward true multi-platform operating system, one which can be installed on your net book, Smartphone and workstation to allow you a seamless working environment. We've already touched upon mobile cloud computing and the possibility of a true cloud operating system in the mould of Google's Chrome OS really excites us, it also becomes more plausible with the upcoming introduction of 4G technology. Design possibilities With the implementation of some of the technologies we've discussed the door is left open for new and more convenient form factors to emerge.

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Wrist watches and long, pen-like devices have been seen on the market before but are never viewed as anything more than a quirk but with evolving technology allowing manufacturers to squeeze in everything a user needs they needn't be constrained by shape and size any longer. Think all-in-one earpiece devices, working fully from voice recognition or spectacles with an AR display in one lens, the possibilities are huge and manufacturers will be able to tailor devices to specific professions with greater and greater ease. The svelte tablet won't be disappearing though but we expect them to get thinner and tougher, with higher resolution displays and longer life batteries. Environmental awareness This may not be a popular choice currently but the implications of sourcing a product from sustainable, fully recyclable and non-toxic materials are far greater than any one of us can currently see. Aside from the far-reaching environmental consequences of irresponsible manufacture we have the added concerns of demand far outstripping supply when it comes to the materials used to build our important devices. Sony Ericsson has taken steps towards a range of eco-friendly devices with its GreenHeart initiative, which promises lower carbon emissions, reduced paper usage and between 50 and 100 per cent recycled plastics used in production. These points not only benefit Mother Nature though, as sustainable materials also serve to keep production steady and with lower transport costs. Another feature which we fully expect to see in future devices is solar panel integration or other eco-charging solutions. What could be better than saving money whilst saving the planet? Is it a stretch to expect our children to be educated in the development and use of mobile tech in the future? Will there be an entirely new, life-changing device, which supersedes all others rendering them obsolete?

Reference: http://www.itpro.co.uk/625501/top-10-future-trends-for-mobile-phones

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CHAPTER 8 PEST ANALYSIS OF MOBILE

PEST Analysis A PEST analysis (also sometimes called a STEP, PESTLE or STEEP analysis) looks at the external business environment. PEST stands for Political, Economic, Socio-cultural and Technological. Technological factors in this case, include ecological / environmental aspects the second E in STEEP and PESTLE, while legislative factors are included under Political (the L in PESTLE). The analysis examines the impact of each of these factors (and their interplay with each other) on the business. The results can then be used to take advantage of opportunities and to make contingency plans for threats. Political Factors: When examining political factors, you need to look at any political changes that could affect your business. What laws are being drafted? What global changes are occurring? Legislation on maternity rights, data protection, health & safety, environmental policy, should be considered, for example.

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As an example, take a company employing a large number of women. Changes in maternity rights may have a major impact on such a business - and the aware business will keep an eye out for changes in such legislation. Economic Factors: Often the political factors spill over into economic factors for example; tax is usually decided by politicians, based on a mixture of political and economic factors. Interest rates, in many countries are decided by a central bank, but political factors may still be important. The fall of the Soviet Union caught most businesses and Western Governments by surprise - but not all. Some companies - notably Shell Petroleum - had picked up signals that all was not well in Russia. Many of these were related to economic problems within the Soviet Union. Other economic factors include exchange rates, inflation levels, income growth, debt & saving levels (which impact available money) and consumer & business confidence. The current state of world stock markets is a typical example of the volatility of economic factors. These areas are global, but it is also important to look at factors affecting individual industries. Are paper costs rising? For a book, magazine or newspaper publisher, the price of paper is a crucial economic measure. The UK software industry has complained of a shortage of computer programmers - driving up wage costs. Again - the global picture can be important. Some companies are now using programmers in countries like India for software development. This helps them keep costs down - and leads to competitive advantage over companies with higher costs. Social Factors: Finally, all this influences and is influenced by social factors - the elements that build society. Social factors influence people's choices and include the beliefs, values and attitudes of society. So understanding changes in this area can be crucial. Such changes can impact purchasing behavior. Typical things to look at for each of these include:

consumer attitudes to your product & industry environmental issues (especially if your product involves hazardous or potentially damaging production processes) The role of women in Society - attitudes to health - attitudes to wealth - attitudes to age (children, the elderly, etc.).

Added complications when looking at social and cultural factors are differences in ethnic and social groups. Not all groups have the same attitudes - and this impacts how they view products and services. Demographic changes can also play a major part. Technological Factors: Advances in technology can have a major impact on business success - with companies that fail to keep up often going out of business. Technological change impacts Sociocultural attitudes. For example the way people spend their leisure has changed dramatically over the last 30 or so years. As well as advances in your own industry, think about the likely impact of new technologies - the Internet, nanotechnology, mobile phones, and the increasing advances in
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computing and computers. Look out for any technology that could make producing your product easier. And watch out for the technology that could make your product obsolete. (As an example, think about the potential impact that video-conferencing could have on the business travel market. Why spend hours and much money travelling some distance for a meeting, when all participants can join in - face-to-face - through a video-conference that lacks only the physical presence of the attendees.) Advantage of a PEST analysis: One way of compiling a PEST analysis for your business is to take a LARGE sheet of paper. In the top left corner, put the heading Political; in the top right corner, Economic; bottom left = Sociocultural; bottom right= technological. For each heading, think of every factor that could possibly have an impact on your business. Think laterally - just because something seems unlikely does not mean that it will not have an influence in the future. Having compiled a list of key factors, think of inter-relationships between factors. For example, the rise of the Internet (technological factors) is likely to influence consumer purchasing (social factors) - while an awareness of prices in other markets through electronic commerce may lead to a narrowing of cross-border price differences (economic). Connect up all inter-related factors. You will find that some areas have more connections than others. These are often the areas that will have the greatest potential impact on your company. These are the aspects that you most need to be aware of, in your marketing planning - and represent future opportunities and threats. The final stage in a PEST analysis is to use the results. Prepare contingency plans for any threats identified. If there are factors that lead to business opportunities, then include these in your planning. For example, your target customer group may be growing faster than other sectors. This is an opportunity to increase production to take advantage of more potential customers. However before you can use the results effectively, you should also develop an understanding of your own companys capabilities.

Reference: http://www.marketing-intelligence.co.uk/help/Q%26A/question24.htm

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CHAPTER 9 PORTERS 5 FORCES MODEL

1. Threat of New Entrants - Low While evidence suggests companies often find it difficult to identify new competitors that is not the case in the mobile phone industry. Because the mobile phone operators must compete for spectrum licenses, they can easily identify their competitors in the individual markets. The threat of new entrants bringing additional production capacity should be downplayed in this industry, because technology should assumed to be similar and thus new entrants do not necessarily bring additional production capacity, nor does their entry hold consumer cost down. The fixed-line operators do however present a risk to mobile phone operators, because they will certainly provide extra production capacity and lower the consumer costs as a result of this competition. 2. Barriers to Entry - High (a) Economies of Scale - Moderate The mobile phone companies were expanding internationally at a fast pace, but the potential benefits of economies of scale in R&D and network exploitation remained unclear. Mobile phone manufacturers did enjoy great economies of scale in production, marketing and R&D, which allowed the three major producers to dominate the industry and sustain a competitive advantage. Strategic alliances with these producers would allow the major mobile phone operators to share in these economies, to lower costs for both companies and to minimize the threat of new entrants. (b) Product Differentiation - Low There was no evidence that mobile phone operators achieved product differentiation. In fact, mobile phone manufacturing brands were more important to consumers than those of the mobile phone operators. As a result, mobile phone operator product differentiation could only be successful if in conjunction with the major phone manufacturer brands. The multimedia content of mobile phone operators could prove to be a successful strategy for product differentiation in the future.
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(c) Capital Requirements - High Compared to capital requirements of the telecommunications industry as a whole, the mobile phone industry capital requirements were low. However, within the mobile phone industry, capital requirements present a significant barrier to entry. Because spectrum licenses went up for auction, only the most financially fit and liquid mobile phone operators could acquire these essential components of their business strategy. One method of negating these stiff capital requirements within the mobile phone industry was to acquire or form alliances with existing operators in other countries. These arrangements took shape through the use of roaming agreements, allowing one operators customers to use their allies network when their own was unavailable. (d) Switching Costs - Low Because product differentiation is low between the mobile phone operators, switching costs are bound to be low. If multimedia content becomes a major opportunity for product differentiation as is expected, this could raise the switching costs for customers. Switching costs could also be higher if mobile phone operators and manufacturers decided to create and operate equipment that was not compatible across mobile phone operators. This seems unlikely, as it would also reduce the ability of mobile phone operators to put in place roaming agreements with their allies. (e) Access to Distribution Channels - Low European regulations governed distribution channels through the use of spectrum licenses. This policy of auctioning licenses to mobile phone operators should be considered a strong barrier to new entrants. (f) Cost Disadvantages Independent of Scale - Low There are no cost advantages that the mobile phone operators have established that new entrants cannot duplicate. (g) Government Policy - Low Government controls the entry into the mobile phone industry through their spectrum licenses. Deregulation would pose a significant threat to existing mobile phone operators, but does not seem to have been on the horizon. 3. Expected Retaliation - High Mobile phone operators have a major stake in the industry through the purchase of licenses and investment in fixed assets with few, if any, alternative uses. These mobile phone operators also have substantial resources. New entrants pose a threat in the sense that industry growth is fast and seemingly unconstrained, except for the role of licenses. Vodafone should expect retaliation by its competitors if they acquire Mannesmann, a point where they will have significantly less financial slack than their competitors. 4. Bargaining Power of Suppliers - High Mobile phone manufacturers are the primary supplier to the mobile phone operator market. These manufacturers were dominated by Ericsson, Nokia, and Motorola with 61 percent of the market. Because the mobile phone manufacturing brands were more important to consumers than the mobile phone operators themselves, bargaining power of suppliers was high. Industry firms are not a significant customer for the supplier group because the suppliers operate in far more international locations and markets than the mobile phone operators. Suppliers goods are critical to buyers' marketplace success. Mobile phone manufacturers could integrate forward into the

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industry. These suppliers were credible, having substantial resource and provide a highly differentiated product. 5. Bargaining Power of Buyers - High There was very little differentiation among mobile phone operators, and the switching costs are low. Accordingly, the industry firms battle for higher quality, greater levels of service, and lower prices than their competitors, and the consumers benefit. Mobile phone customers purchase the entire portion of the mobile phone operator's industry output. The sales of the mobile phone service account for the entire amount of the seller's annual revenues. The mobile phone customers could switch to another mobile phone operator at little, if any, cost. The mobile phone industry's products are undifferentiated and standardized. The buyers do not pose a credible threat of backward integration because of the high capital requirements. 6. Threat of Substitute Products - Low Substitute products for the mobile phone industry could be considered fixed-line phone products if convergence is not considered to exist. This substitute products price is not lower, and its quality and performance capabilities are negligible compared to mobile phone products. Switching costs are low but the advantage goes to the mobile phone industry because there is a greater chance of switching to mobile phones from fixed-line phones than the other way around. 7. Intensity of Rivalry among Competitors - High (a) Numerous or Equally Balanced Competitors High There are many equally balanced competitors in the mobile phone industry, and industries with these characteristics tend to have strong rivalries. (a) Slow Industry Growth - Low Because the mobile phone market is undoubtedly growing, there is little pressure to take customers from competitors. There are many equally balanced competitors in the mobile phone industry, and industries with these characteristics tend to have strong rivalries. (b) Slow Industry Growth - Low Because the mobile phone market is undoubtedly growing, there is little pressure to take customers from competitors. (c) High Fixed Costs or High Storage Costs - High Mobile phone operators have high fixed costs due to spectrum licensing and the establishment of wireless network points of access. As a result, these mobile phone companies try to maximize their productive capacity, which leads to excess capacity and intense rivalry. (d) Lack of Differentiation or Low Switching Costs - High Because buyers in the mobile phone industry believe mobile phone service is a commodity, rivalry within the mobile phone industry is high. Switching costs for mobile phone consumers are also low, so competitors can easily attract buyers through pricing and service offerings. (e) High Strategic Stakes - High Nearly all operators in the mobile phone industry considered it their primary market, so competitive rivalry is intense. Europe is a dense market, high strategic stakes also exist because of this geographic location. These competitors want as much of the markets as then can get. (f) High Exit Barriers - Low Specialized assets such as spectrum licenses maintain a high resale value. Fixed costs of exit, strategic interrelationships, emotional barriers, government and social restrictions are all negligible.
Reference: http://www.cybozone.com/vcu/Vodafone_Air_Touch_-The_Acquisition_of_Mannesmann.pdf

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CHAPTER 10 COMPETITIVE ANALYSIS WITH MARKET

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MOBILE PLAYERS IN INDIAN MARKET

The Indian telecom industry is the worlds fastest growing industry with 792 million mobile phone subscribers as of February 2011. It is also the second largest telecommunication network in the world in terms of number of wireless connections after China. The industry will reach around $80 billion in revenues by next year showing an astounding CAGR of over 25% and will employ a stupendous 1 crores employees making it one of the biggest value creators in India in recent times. However the telecom companies in India after enjoying a boom period in the early 2000s has faced a couple of tough years with hyper competition leading to a price war in auction of 3G spectrum. This was followed by one of the most high profile corruption scandals in the country which resulted in the jailing of the former telecom minister in the 2nd auction of 2G spectrum. Most of the telecom companies have been found to be implicated in colluding with sleazy politicians/bureaucrats in looting the Indian taxpayers. India is one of the most corrupt in the country and after the 2G Scam; the telecom sector is giving it close competition for the No.1 spot in corruption Despite these problems, India is set to see another spurt of growth as 3G in India has the potential to bring Internet to Indias massively under penetrated population which has phones but not computers.

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India is soon going to emerge as the second biggest mobile market only after China with broadband being another area that will witness massive growth due to increase in Internet usage The fact that more than two dozen companies have submitted over 500 applications for telecom licenses across India clearly underlines the inherent growth potential of this crucial sector. Apart from leading global telecom giants that are in the fray in tie-ups with various Indian companies, those having presence in real estate, information technology, automobile, finance and infrastructure sectors want to be a part of this splendid growth story. Despite having the third largest telecom subscriber base in the world (24-crore) after China and the US, its tele-density at 21 per cent is among the lowest. Even countries like Russia, Brazil and Thailand are far ahead of India. It is the projections that India would have over 50-crore subscribers and a tele-density of 36 per cent by 2010 is attracting new players to tap this huge market. The key drivers of this growth would be the mobile and broadband services. While India is soon going to emerge as the second biggest mobile market only after China, broadband will be another area that will witness massive growth due to increase in Internet usage and introduction of new services like IPTV and m-commerce. In fact, m-commerce that will facilitate business transactions through mobile devices like mobile phones and smart phones has immense potential. Notwithstanding the complex spectrum issue, companies are hopeful that the Government would provide them enough radio frequencies to deliver advanced telecom services. The telecom sector is also seen as a key driver behind consistent economic growth, and the Government cannot afford to scuttle this momentum. As the competition gets fiercer in the telecom sector, it will be the consumers who would be benefited the most. Already India has the cheapest tariffs in the world, and with more players joining the race, they can expect to get more sops like attractive tariffs, additional value-added services, cheaper handsets and much more. Some leading telecom companies like Reliance Communications are already providing mobile handsets at sub-Rs.1, 000 and free talk time on certain plans, entry of more companies will see rollout of various innovative packages and plans to attract subscribers, particularly in small towns and rural areas. And as the recent entrant Vodafone unfolds its strategy for the Indian market, a mobile handset at Rs. 500 with free lifetime connection might soon become a reality for Indian customers.

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POSITIONING OF MOBILE COMPANIES IN INDIA

The country's telecom regulator is TRAI. Rank Operator Technology Subscribers (in millions) 85.65 [62] (December 2008) Ownership Bharti Tele-Ventures, Singapore Telecommunications (30.84%) and Vodafone (4.4%)

1 Airtel

GSM, EDGE

CdmaOneKey advantage
over other (non-operator) retailers - presence in both retailing and airtime

2 Reliance

Key advantage over operators - not tied to technology (as an MVNO)

61.34 [63] (December 2008)

Reliance - Anil Dhirubhai Ambani Group

GSM 3 Vodafone GSM, EDGE

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60.93 [64]

Vodafone (67%) & Essar

Page 32

(December 2008) 4 BSNL GSM, GPRS, EDGE,HSDPA 46.22 [65] (December 2008) 34.21 [66] (December 2008) 31.76 [67] (December 2008) 16.07 [68] (December 2008) 4.18 [69] (December 2008) 3.80 [70] (December 2008) 1.94 [71] (December 2008) 0.38 [72] (December 2008) 0.36 [73] (December 2008)

Group (33%)

State-owned

Idea 5 Cellular Tata 6 Indicom

GSM, GPRS, EDGE

Aditya Birla Group

CdmaOne

Tata Group

7 Aircel

GSM

Maxis Communications & Apollo Hospital

8 MTNL

GSM,HSDPA

State-owned

9 Spice

GSM

Spice Corp and Telekom Malaysia

BPL 10 Mobile ping 11 mobile Hello 12 rainbow

GSM, GPRS

Essar Group

GSM

HFCL Infotel

cdma

Sistema (73.71%) & Shyam Group (23.79%)

Although, Nokia has been losing its Mobile handset market share in troves, it has not stopped it from becoming the most trusted brand in India, 3rd year in succession according to Brand Equity survey. Nokia first debuted at 71 in 2004, moved to 44th in 2006, 4th in 2007 and then shot up to number one and has been there since. Micromax, Lava, Spice, Zen, Karbonn and many other Indian handset brands are making more than a mark in the market today.

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They have together occupied more than 14% market share. The best part for them is that this has been at the cost of certain brands specifically Nokia losing its market share by more than 12% over the past year. So the question is what makes them tick and will they be able to survive? Most of these handsets can be sourced from China at as low as US$ 16 with a 1% duty and at prices half that of the multinational brands. The cheapest handset also offers a good margin. But competition is increasing thick and fast. The question remains as to how well these brands differentiate their offerings. But at the end of the day, the biggest factor which attracts people is the price. Before Micromax came with its QWERTY phone for Rs 5,000, such phones werent available for less than Rs 10,000. Lava as well as Micromax is working overtime to launch 3G as well as smart phones for less than Rs 6,000. The most interesting aspect of their strategy is that they are targeting villages first, cities later. They want to build a strong user base first where they have a greater opportunity. Poor recall of multinational brands in Rural India and the price factor has helped them gain a good market share in these areas. Spice claims to have 18% market share next only to Nokia in Rajasthan. A new entrant, MVL plans on using road shows as part of its marketing campaign. It also plans to sell its phones through post offices. Technology has also been an important factor for these brands to develop themselves strongly. An inbuilt mosquito repellent, longlife batteries, dual SIM card reader, fake currency reader they have it all. But the most important part to succeed in this highly competitive game is to innovate and that too quickly and faster than your competitors. Companies should search for newer methods of continuously reducing the product development cycle. These brands have also signed onto many Bollywood stars as their Brand Ambassadors as well as invested heavily in cricket especially the Indian Premier League [Micromax]. This is what sells in India and they feel that they could differentiate themselves by this move. The long term success of Indian handset brands depends on their differentiation, competency in smart phone development and also a strong supply chain. Foreign brands have already dismissed their competition saying that they dont have the ability to effectively compete.

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STRENGTH OF MOBILE PHONES IN INDIA

In 2009 Etisalat has announced that its Indian unit, erstwhile Swan Telecom (owned by Dynamix Balwas Realty and Reliance Communications),[34] headquartered in Mumbai, is renamed to Etisalat DB Telecom India Pvt. Ltd Telecom Renamed Etisalat Telecom India Pvt. Ltd. The business unit has been awarded Unified Services Access License in 15 circles Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar. In April 2010 Etisalat began signal testing in Chennai, Delhi & NCR , Maharashtra & Goa , Mumbai and Gujarat. In May 2010, Etisalat was in talks to buy 25% stake in Reliance Communications, but the deal was not finalised. In 2010, following the $39 billion 2G spectrum scam, Etisalat DB, the Indian subsidiary of the company, was stopped from buying a stake in a Chennai-based company due to objections raised by the India's home ministry (MHA). Etisalat DB was not allowed to buy back the 5.27 per cent stake held by Chennai-based Genex Exim Ventures since the home ministry raised objections based largely on security concerns. The MHA had pointed out four issues that needed to be resolved before allowing the company to come into Etisalat DB, a company that got scarce 2G spectrum at allegedly throwaway prices, First, vice-chairman Shahid Balwa should not be involved in the operations of the company in any capacity, because of his connections with underworld don Dawood Ibrahim, second, the MHA raised objections about the commercial relationship between the Dubai-based Etisalat Group and Chinas Huawei. The MHA suspects, Huawei has links with Chinas Peoples Liberation Army the countrys military organization of all land, sea, strategic missile and air forces
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and has the capacity to manipulate equipment supply, third, it raised objections about Etisalats presence in Pakistan and it's connection with Pakistan's intelligence agency ISI. Etisalat owns a 26% stake in Pakistan Telecommunications and has a subscriber base of 3 million in Afghanistan and fourth, the MHA has also expressed concerns about the telecom surveillance software Etisalat had used in a Blackberry service it had introduced in the UAE and recommended that the company should not be allowed to offer Blackberry services in India. Strength could be:

Your specialist marketing expertise. A new, innovative product or service. Location of your business. Quality processes and procedures. Any other aspect of your business that adds value to your product or service.

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CHAPTER 11 CONSUMER NEED ANALYSIS

The Customer Analysis section of the business plan assesses the customer segments that the company serves. In it, the company must: 1. Identify its target customers 2. Convey the needs of these customers 3. Show how its products and services satisfy these needs

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CONSUMER SEGMENTS

Ask yourself a series of strategic questions: - Do you know who your customers are? - Do you know the characteristics of your customers? - Do you know what influences your customers when making purchasing decisions? - Do you know where your customers live, work and play? - Do you know who amongst your customers are the most profitable and those who are a drag on your resources? - Do you know who else can be a profitable customer yet is currently not being served by your company?

In other words, do you segment the entire population within your market (not just customers) into relatively homogeneous groups that can be measured, analyzed, and targeted?

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Consumer segmentation is the process of classifying people into groups that have some set of similar characteristics, resulting in the ability to be studied and targeted. The most basic method is to segment by simple demographics such as age, income, or marital status. The goal is to identify relatively homogeneous groups with similar behavior that will assist in customizing the message and/or offer for each segment. Some companies target only one macro group, such as the AARP attracting anyone 50 years old or older. Others have much more sophisticated segmentation schemes, using dozens, or even hundreds of variables. The advent of accessible computer technology, the development of new statistical methods, and the availability of US Census data have all contributed to a whole new industry specializing in multi-tiered consumer segmentation. Add to this the standardization of geographic definitions and you now have a powerful basket of measurable variables that can help segment the population in a very detailed fashion. XTREMEimpakt offers you the ability to classify, study and target consumers (both your own customers and the general population) using two different, yet partially correlated segmentation typologies: 1 Geodemographic 2 Psychographics

Both systems provide you with incredible insight into the consumer market, generating results that are both measurable and actionable. In general, this segmentation method links the sciences of demography (the study of human population dynamics), geography and sociology. Its premise is that people with similar cultural backgrounds, means and perspectives naturally gravitate toward one another, resulting in relatively homogeneous communities (birds of a feather flock together). The theory goes, once settled in, people naturally emulate their neighbors, adopt similar social values, tastes and expectations and, most important to marketers, share similar patterns of consumer behavior toward products, services, media and promotions. Thus, you are able to classify neighborhoods and their households into clusters or groups of neighborhoods based on their underlying socio-economic and demographic composition. A number of companies specialize in geodemography, applying their own set of variables and segmentation techniques to delineate the entire US population into a number of clusters that are large enough to provide substantial distinctions between groups, yet are small enough to be manageable.
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You can use these clusters to segment your customer base, identify profitable groups, find new customers, locate sites for stores, buy advertising, target direct mail, guide promotional activities, and develop new products. XTREMEimpakt is in a position to help you incorporate geodemographic segmentation into your marketing strategy. Very quickly you will see your customer base in a whole new light. You will be able to isolate groups that are most profitable (and least profitable), then build a highly targeted campaign to attract those individuals of most interest to your company. You will then be able to measure the effectiveness of all your marketing elements and make educated adjustments and refinements for each subsequent round of marketing and promotional activities. To further target your marketing efforts, you should have a method to not only determine who is or will buy your product, but identify what makes them want to buy as well. Psychographic segmentation is a powerful method to delineate consumers based on their personalities, values, attitudes, interests, and/or lifestyles - - that is, you are identifying and measuring those attributes (behavioral, economic and interpersonal) that drive consumer behavior. As part of our underlying objective of developing marketing and promotional programs that make an IMPACT, we have partnered with the top provider of psychographic segmentation to identify the motivations of your best customers and prospects, thus leading to the most effective message and method of delivery. Every segmentation typology on the market today includes some sort of link to geography. This, of course, is critical because your marketing message needs to reach your customers and prospects. And, as stated earlier, knowing where different clusters of people live gives you the opportunity to target your activities in the most efficient and effective manner. Thus, analyzing your target population according to geographic boundaries (such as zip code, census tract, postal route, etc.) gives you an organized and easy-to-understand method to identify where you are strong, where you are not reaching your target, and everywhere in-between. But geographic analysis does not just consist of generating reports. With the advent of geographic information systems (GIS), marketers are able to actually map analysis results. Thus, you can see different population variables based on their physical distribution. Often, once mapped, you get a very different perspective of your marketplace. Literally within seconds you can see where your customers reside and how your target population clusters are distributed. Very powerful stuff! Because segmented geography plays a key role in determining the level of IMPACT, we have partnered with one of the leading providers of GIS. We are thus able to offer you vivid insight into the market you serve.
Reference: http://www.xtremeimpakt.com/index/Capabilities/Strategic-Services/Consumer-Segmentation

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BUYING BEHAVIOUR OF MOBILE CUSTOMERS

The concept of buying behavior is of prime importance in marketing and has evolved over the years. It is important to understand consumer buying behavior as it plays a vital role in creating an impact on purchase of products. The human wants are unlimited and always expect more and more. Mobile pre-paid products and Mobile handsets are no exception to this behavior. This lead to constant modifications of Mobile pre-paid products and mobile handsets and today we see lots of pre-paid products and new handset coming into the market practically every month. In this research study my findings gave me a through insight of consumer buying towards mobile prepaid products and handset models. I found that consumers consider various parameters while buying a mobile operator and mobile handsets. Factors such as better connectivity, attractive tariff and low entry cost plays an important role in influencing a customer for opting any network similarly price, functions availing and long battery backup are considered very important factors for a customer before buying a handset model. The study also helps me to know what are the major factors of dissatisfaction among the people after using a mobile operator. On the whole, the market is a very important place to study the behavior of consumers and also. Provide useful insights what a consumer requires in a product. It is only through research that an Company will be able to study the buying behavior of consumers. INDIAN TELECOM SCENARIO- AT A GLANCE The Indian Telecommunications network with 429.72 million for the quarter ending March 2009 is the fifth largest in the world taking the teledensity up to 36.98 and is the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base is expected to reach 500 million by next year. India had 109.7 million rural mobile subscribers at the end of the first quarter, up by 18 percent from 93.2 million users in the fourth quarter of last year. Despite the global economic slowdown Indias mobile phone market continues to be unaffected by the economic slowdown, with 11.9 million new mobile subscribers in April 2009. Thats a 45 percent greater increase than in the same month last year. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.
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OPPORTUNITY FOR MOBILE BUYERS

One important part of marketing is understanding what or who are influencing your customers. Especially when it comes to the decisions they make when buying. The reason it is important to understand is that it can affect your marketing decisions regarding pricing, the products or services you offer, your communication etc. There can be many influencing factors and I will forgo the obvious ones of friends, peers, family and their influence with regards to referrals. Here are four factors that may affect your customers buying behavior: External factors I call them external because they are the ones that you have no say in, but can directly affect buying decisions. An example is when governments bring down budgets. If there are tax increases then these can mean your customers may not have the money to spend that they did before. It has nothing to do with you or your business. Friends and family In certain categories friends and family play a big part as influencers in buying decisions. This is seen every day with consumer products such as food and the influence of the family on what is bought. It can also be seen if you are selling to other small businesses. Often the family has an
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influence on what they buy for their business as it can have a direct impact on the family financials or lifestyle. For example the small business owner who wants to spend more time with the family may only look at products or services that free up their time. Opinion leaders The influence of opinion leaders has been around for a long time. And now opinion leaders from other countries can now have an influence on your customers in your country. One point to note is be sure to identify opinion leaders who are relevant to your market and customers and why they are relevant. A common mistake is automatically thinking the opinion leaders who influence you are also influencers of your customers. They may not be and this can lead to you making the wrong marketing decisions if you automatically assume they do. Online opinion As more customers buy products or services online and people review or talk about products or services, what is written or viewed or heard can influence your customers decisions even if they ultimately purchase offline. This can occur on social networking sites, comparison shopping sites and reviews for example. With online you do need to know which particular factors are the most important as again what influences you may not be important to your customers.

Reference: http://www.m4bmarketing.com/factors-customers-buying-behaviour/

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CHAPTER 12 INDIAN MARKET ENTRY STRATEGY

What sense does this image make here? Mobile Industry, after the slump has shown signs of recovery and as per IDC Indias latest report, Indias mobile handset market touched 100.9 million units in the year ended June 2009, recording a growth of 6.7%* from 94.6 million units in the previous year ended June 2008. In terms of units shipped, Nokia had the largest share (*) of 56.8%, followed by Samsung with a 7.7% share while LG stood third with a 5.4% share in the 12-month period ended June 2009. Entry of New Handset Vendors The growth of mobile handset market can be gauged from the fact that 27 new handset vendors entered India just in 1 quarter. India also witnessed the launch of high-end phones as well as entry level phones and Indian mobile users bought nearly 700,000 high-end/smart phones in the April-June quarter (2009). Latest updates from the handset industry - Recently, Mind tree announced the acquisition ($6mn all cash deal) of Kyoceras captive unit in Bangalore, where it would design and build ready-to-brand 3G handsets for telecom service providers and original equipment manufacturers (OEMs). Post this Kyocera acquisition, Mind Tree has set up a new business unit N!Mo or Next in Mobility to address the complete product lifecycle from concept through delivery leading to ready to brand products in wireless technologies for its customers. - Hong-Kong stock exchange-listed China Wireless Technologies Indian subsidiary, Cool pad Communications has announced partnership with Reliance for its dual sim phone, i.e. GSM and CDMA and is setting up its mobile handsets in the Indian market. Cool pad is targeting Rs 800 crore revenue in the next five years from the Indian market.

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* IDC uses the term shipments to describe the number of handsets leaving the factory premises for OEM sales or stocking by distributors and retailers. In the case of handsets imported into the country it represents the number leaving the first warehouse to OEMs, distributors and retailers.

Reference: http://www.pluggd.in/mobile-handset-market-sales-in-india-297/

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TARGET SEGMENTS OF CUSTOMERS FOR MOBILE

Customer segmentation and customer profiling: To compete with other providers of mobile telecommunications it is important to know enough about your customers and to know the wants and needs of your customers. To realize this, it is needed to divide customers in segments and to profile the customers. Another key benefit of utilizing the customer profile is making effective marketing strategies. Customer profiling is done by building a customers behavior model and estimating its parameters. Customer profiling is a way of applying external data to a population of possible customers. Depending on data available, it can be used to prospect new customers or to recognize existing bad customers. The goal is to predict behavior based on the information we have on each customer. Profiling is performed after customer segmentation. 1.1.1 Customer segmentation Segmentation is a way to have more targeted communication with the customers. The process of segmentation describes the characteristics of the customer groups (Called segments or clusters) within the data. Segmenting means putting the population into segments according to their affinity or similar characteristics. Customer segmentation is a preparation step for classifying each customer according to the customer groups that have been defined. Segmentation is essential to cope with todays dynamically fragmenting consumer marketplace. By using segmentation, marketers are more effective in channeling resources and discovering opportunities. The construction of user segmentations is not an easy task. Difficulties in making good segmentation are Relevance and quality of data are essential to develop meaningful segments. If the company has insufficient customer data then meaning of customer segmentation is unreliable and almost worthless. Alternatively, too much data can lead to complex and time-consuming analysis. Poorly organize data (different formats, different source systems) makes it also difficult to extract interesting information. Furthermore, the resulting segmentation can be too complicated
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for the organization to implement effectively. In particular, the use of too many segmentation variables can be confusing and result in segments which are unfit for management decision making. On the other hand, apparently effective variables may not be identifiable. Many of these problems are due to an inadequate customer database. Intuition: Although data can be highly informative, data analysts need to be continuously developing segmentation hypotheses in order to identify the right data for analysis. Continuous process: Segmentation demands continuous development and updating as new customer data is acquired. In addition, effective segmentation strategies will influence the behavior of the customers affect by them; there by necessitating revision and reclassification of customers. Moreover, in an e-commerce environment where feedback is almost immediate, segmentation would require almost a daily update. Over-segmentation: A segment can become too small and/or insufficiently distinct to justify treatment as separate segments. One solution to construct segments can be provided by data mining methods that belong to the category of clustering algorithms. In this report, several clustering algorithms will be discussed and compared to each other. 1.1.2 Customer profiling Customer profiling provides a basis for marketers to communicate with existing customers in order to offer them better services and retaining them. This is done by assembling collected information on the customer such as demographic and personal data. Customer profiling is also used to prospect new customers using external sources, such as demographic data purchased from various sources. This data is used to find a relation with the customer segmentations that were constructed before. This makes it possible to estimate for each profile (the combination of demographic and personal information) the related segment and visa versa. More directly, for each profile, an estimation of the usage behavior can be obtained. Depending on the goal, one has to select what is the profile that will be relevant to the project.

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DEMOGRAPHICS OF MOBILE CUSTOMERS

While almost half of all urban Indians are mobile, only 1 in 10 rural Indians are mobile. 25-35 years is the single largest mobile user age group. However, 19-24 years ones show the highest penetration as well as the highest propensity to own mobile phones. Only 1 in 5 mobile Indian is a woman. 1 in 3 Indian men are mobile. North zone is the single largest mobile region, though mobile penetration is highest in East zone. 2 out of 3 mobile users are unmarried singles when almost half of all Indians are married. Students form the largest occupational group of mobile users, followed by self-employed Average monthly household income of mobile user is 2.3 times that of mobile non-users.

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COST DECISION IN MOBILE PHONES

India, the second largest mobile market in the world, is also among the fastest growing mobile markets globally. The total number of mobile subscribers in India has increased from 53 million in March 2005 to 584 million in March 2010, at a compounded annual growth rate (CAGR) of 62%, aided by a significant increase in network coverage and a continual decline in tariffs and handset prices. India, a relatively late entrant into mobile services, has benefited from a significant decline in mobile network costs during the last three to four years. As compared with a capital cost of INR2000-3500/subscriber to provide mobile service, it costs as much as INR900015000/subscriber to provide fixed-line services. However, telecom operators are continuously in process to further reduce this operational cost and with the help of governing bodies they have come up with solution called Network Sharing'. In network sharing operators can share third party network infrastructure to operate their business in India with a relatively low initial operational investment. The telecom tower industry in India is expected to grow at 20% during the next 5 years. This growth is driven mainly by the current capacity constraints, increased rural penetration strategy and additional requirement for rolling out 3G services. It is advantageous for the mobile operators to tie up with tower companies as it is faster and cheaper to roll out the network by collocating with Infrastructure operators (IP) rather than expanding their own network. This report will justify this prospect in details. The report begins with the introduction of mobile network infrastructure in India. The market overview section highlighted the network infrastructure in terms of type and number of telecom towers installed, their functionality and how they work. The infrastructure and description of different types of telecom towers in India is also highlighted. This is followed by the information regarding the various business models followed in India with regards to erection of towers and its related infrastructure. A separate section on this report talks about mobile infrastructure sharing in India. This section explores mobile network sharing.

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CHAPTER 13 POSITIONING OF MOBILE COMPANY

In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market. The original work on Positioning was consumer marketing oriented, and was not as much focused on the question relative to competitive products as much as it was focused on cutting through the ambient "noise" and establishing a moment of real contact with the intended recipient. In the classic example of Avis claiming "No.2, We Try Harder", the point was to say something so shocking (it was by the standards of the day) that it cleared space in your brain and made you forget all about who was #1, and not to make some philosophical point about being "hungry" for business. Brand management is the application of marketing techniques to a specific product, product line, or brand.
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CHAPTER 14 SWOT ANALYSIS

SWOT Analysis A SWOT analysis builds on the results of the PEST analysis, which looks at the company's external environment. Its purpose is to identify company strengths and weaknesses so that strengths can be maintained or increased and weaknesses corrected. A further purpose is to identify opportunities and threats resulting from external factors - especially those that have an impact on the company's strengths and weaknesses. Company strengths and weaknesses need to be identified in all aspects of the business

relative to the rest of the market (i.e. compared to competitors) relative to previous performance or expected performance relative to customer demand (for example all companies in an industry may fail to satisfy a particular customer need. This is a weakness - and the first company to match this customer need will have strength relative to the other companies in the industry.)

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It is also important to realise that opportunities arise out of weaknesses. Correcting a weakness presents a marketing opportunity. Similarly, failing to maintain a strength is a threat to the company. A preliminary approach for carrying out a SWOT analysis is to list perceived company strengths, weaknesses, opportunities and threats under each of these headings. Ensure that no weaknesses cancel out company strengths and potential threats to the company strengths or opportunities that could arise out of correcting weaknesses. On the above list, highlight key areas of concern or areas that require action. These become the focus for future planning. This approach is preliminary - as it does not evaluate the relative importance of each issue. A further approach is to list key aspects in a table - and score them out of 5, where 5 is a major strength and 1 a major weakness. Scoring can be based on the following factors

relative to the overall industry relative to major competitors or the next largest competitor relative to expected performance Relative to previous performance.

An item that won on all 4 categories would be a major strength and vice versa for weaknesses. Areas where the company has better performance than competitors, but where performance is below expectations would receive a higher score than where performance has improved but still is weaker than competitors. The following is list of some of the things that can be considered: Marketing Aspects

Market share and market segments addressed Competitive Structure Customer base (quality, size, loyalty, etc.) Demand forecasts Product range and quality. Services provided Distribution capabilities and costs Sales effectiveness Promotional effectiveness. Image and reputation Pricing options Speed to market Customer service R&D and Innovations / new products Marketing skills and experience International / export market capabilities

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Operational / Manufacturing Aspects

Production / Manufacturing facilities (age, quality, speed...) Economies of scale Skills (Employee, technical, etc.) Product failure rate Flexibility Costs Supply / raw material availability

Human Resource Aspects

Employee skills, motivation, dedication and experience Employee satisfaction Employee costs Work environment Staff turnover rate Management and Organizational Aspects Management skills and experience Leadership and team skills Ability to respond to market change Flexibility and adaptability

Financial Aspects

Cost of capital Profitability / Return on investment Financial Stability Sales / Employee Cash availability

This scheme allows the company to identify where it is strongest against competitors - the company's competitive advantage - and against previous and expected performance. Finally after compiling the list, management should start to consider whether action is needed regarding each identified item. A way forward here is to rank each item on importance to the company. Low performance (i.e. a score of 1 or 2) and high importance should be the major priority. Similarly, high performance (4 or 5 score) and high importance indicates areas where performance needs to be maintained. Conversely, low importance and low performance can be given a low priority, while low importance items that are viewed as strengths can be ignored. It is better to spend time and money improving or maintaining areas that matter to the company than worrying about perceived strengths that do not add anything worthwhile to the company. This can be summarized as:

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1. Low priority - monitor for changes. Focus on only if finances and time allow. 2. Medium priority - focus on after the high priority items have been looked at, or if finances allow. 3. High priority - main focus. Ensure adequate finances to address issues. The results of this analysis then feed into a marketing or organization strategic plan.

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CHAPTER 15 CAPITALIZING ON STRENGTHS

Retailing & Service Provider

Retail POS Implementation, POS Customization, POS-EBS Integration Mobile Point of Service (mPOS), Mobile Stores Retail International Expansion Retail Business Intelligence Insurance SOA for Insurance, Legacy Modernization Insurance Mobility (mSure) Business Intelligence & Reporting for Insurance Insurance Channel Portal High Technology Productizing Custom Software (OPD) Customer Support Solutions Performance Engineering Optimization

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MVNO CONCEPT

Mobile Virtual Network Operator (MVNO) basics: What is behind this mobile business trendMVNOs bring the opportunity to telecom and nontelecom companies to participate in the mobile sector. New players in the MVNO arena can extract more value from their current customers by adding a new revenue stream And/or strengthening their current value proposition. This article intends to summarize The key concepts of the MVNO opportunity to new players of the mobile sector. An MVNO is a business model that emerges when the traditional mobile value chain is ruptured. Therefore, new players can participate in the mobile value chain and extract value leveraging their valuable assets. The traditional mobile value chain can be separated into two main areas: 1.Radio access network that is exclusively exploited by mobile network operators, moreover it requires a license granted by the regulatory authority to use the spectrum, and 2. - the rest of the elements required to deliver the service to the customers. As it is shown in the exhibit 1, this Second area of the value chain includes: the operation of the core network (e.g. switching, backbone, transportation, etc.), the operation of the value-added services (e.g. SMS, voicemail,
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etc.), the operation of the back office process to support business process (e.g. subscriber registration, handstand SIM logistic, billing, balance check, top-up network, customer care, etc.), the definition of a mobile value offer and the final delivery of the products and services to the client through the distribution channel. It is in this second area of the value chain where other parties can participate by innovating, operating or selling mobile services. Both Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs) can take advantage of this business model. Mobile network operators can exploit its network capacity, IT infrastructure and service and product portfolio to acquire untargeted segments, add a new revenue stream from wholesale business and reduce spare capacity and cost-to-serve per user. On the other hand, an MVNO can exploit its brand awareness, distribution channels and customer base to provide customized value proposition and complementary products and services to its customers. An MVNO venture brings multiple benefits to a company such as: a new revenue stream, a low-cost entry strategy to the mobile market, a new vehicle to strengthen the value proposition and an opportunity to increase customer acquisition and/or retention. MVNO business models The different business models in the MVNO market are based on how the value chain is restructured. Therefore, four main business models that emerge are: Branded Reseller, LightMVNO, Full-MVNO and Network enablers (Exhibit 2). Branded reseller is the lightest MVNO business model, where the venture just provides its brand and, sometime, its distribution channels. While the mobile network operator (MNO) provides the rest of the business, from access network to the definition of the mobile service offer. This is the model that requires the lowest investment for a new venture, therefore the fastest to implement. However, most of the business levers remain with the network provider (MNO or MVNE). Therefore, the new venture has a very limited control of the business levers and value proposition of the service. Full-MVNO is the most complete model for a new venture, where the mobile network operator just provides the access network infrastructure and, sometimes, part of the core network, while the new venture provides the rest of the elements of the value chain. This MVNO business model is typically adopted by telecom players that could gain synergies from their current business operation. Light-MVNO is an intermediate model between a branded reseller and a full-MVNO. This model allows new ventures to take control of the marketing and sales areas and, in some cases, increase the level of control over the back-office processes and valued-added services definition and operations. Network enablers, typically known as Mobile Virtual Network Enablers (MVNE), this is a third party provider focused on the provision of infrastructure that facilitate the launch of MVNO operations. An MVNE can be positioned between a host MNO and an MVNO venture to provide services ranging from value added services and back office processes to offer definition. MVNEs reduce the entry barriers of MVNO ventures, given that anMVNE aggregates the demand of small players to negotiate better terms and conditions with host MNO. They pass on some of these benefits to theirMVNO partners. Moreover, the all-in-a-box approach to launch an MVNO through a MVNE has accelerated, even more, the explosion of the MVNOmarket. Some MVNE models are also called Mobile Virtual Network.

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Players in the MVNO arena There are three groups of players that have taken advantages of the MVNObusiness model: Telecom companies, non-telecom companies and investors. Mobile network operators can benefit from the MVNO model by serving untapped segments that their current value proposition is unable to attract. Additionally, telecom operators in general (fixed and/or mobile) can use the MVNO opportunity to enter to new geographies through a wholesale business based on a MVNE model. Finally, telecom operators with no mobile offering can strengthen its value proposition providing a 4-play offer. Non-telecom companies such as retailers, media and content generators, Financial institutions, travel and leisure, postal services, sport clubs, food and beverage, among other type of companies can take advantage of their current assets (brand, customer base, channels, content, etc.) to exploit a new business or to strengthen their current value proposition and customer loyalty. Investors can take advantage of the MVNO model by investing in new Opportunities to create value by participating in the telecom industry. Key enablers for take-off and benefits of the MVNOs The MVNO business model requires a series of conditions to be in place for take-off. For instance, the level of readiness of the MVNO market players (e.g. mobile network operators) is also crucial for this opportunity. Therefore, if the mobile network operators see the MVNOs as a potential threat instead of a new way to extract more value form the market, their willingness to participate will be lower. The main enablers of the MVNO market include: Level of commitment of the regulator agency to increase competition through the implementation of the MVNO business model. Mobile network operator cooperation, having a strategy and see it as a win-win situation. Therefore, network, IT and processes readiness of the mobile network operators to provide wholesale services to third parties. Moreover, there are specific conditions that could determine when it is the right time to impulse or pursue the MVNO business model in a certain mobile market. Most of them are related to the available room for growth in the sector in terms of subscribers and level of competition. Among the various indicators that mobile markets have shown before the launch of MVNOs, the main ones are: High level of mobile penetration (higher than 80-90%), therefore the available room to expand the market is reducing and operators will grow through the acquisition of customers from its competitors. Market growth has slowed down, most of the time it has happened because the level of competition has gone down. There are 3-4 mobile network operators that have already invested in and deployed an extensive infrastructure. Therefore, there is enough capacity that has led to spare capacity in some of the competitors. Low competition environment in the mobile market coupled with a low level of customer satisfaction that has led to high level of churn. High level of prices and low level of innovation due to significant market power of current players that has led to a low level of competition. There are number of benefits behind the MVNO business model that have been obtained in the markets where the business model has been launched: Market growth stimulation by serving untapped segments.

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 Open competition to avoid oligopolies, reducing entry barriers to new players. This situation has led to intensify competition resulting in: greater choice of service providers and services, price decreases that has benefited customers and a wave of innovative value propositions and advanced services. Improvement in service quality. Stimulate private and foreign investment that acts as a new source of employment and economic growth.

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GOOD BRAND RECALL

Brand Recall is the extent to which a brand name is recalled as a member of a brand, product or service class, as distinct from brand recognition. Common market research usage is that pure brand recall requires "unaided recall". In terms of brand exposure, companies want to look for high levels of unaided recall in relation to their competitors. The first recalled brand name (often called "top of mind") has a distinct competitive advantage in brand space, as it has the first chance of evaluation for purchase. Some 41% of cell phone users who remembered seeing mobile advertising could remember at least one brand - thats up 20% from three months earlier, when 34% recalled at least one brand, according to Limbos Mobile Advertising Report Q1 2008. [B]rand recall is at an all-time high in the mobile channel, said Rob Lawson, chief marketing officer and cofounder of Limbo.

SMS (text) is the dominant cell phone service, with usage highest among the 24-and-under age group, with 82% penetration, according to Lawson.

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Nevertheless, SMS continues to transcend the generational divide, with 50% of SMS users age 35 or over and 75% age 25 or over. Therefore, SMS should not be pigeonholed exclusively as a youth medium, he said. Key findings of the Q1 report:

Mobile penetration: There are more than 255 million cell phone users in the US, up from 251 million in fourth quarter 2007. Mobile usage: More than 50% of cell phone users make use of SMS, but WAP (mobile web) - with still only 50% of the reach of SMS - is the fastest-growing medium, with 69 million users. Mobile advertising recall: The number of people who recalled seeing advertising on their cell phones in the last three months has risen significantly, from 78 million to 82 million. Males engaged: Men are 10% more likely than women to recall a brand they had seen advertised. Those age 25-34 are the highest-performing age group. Income and recall: There is a reverse correlation regarding income, with those earning the least much more likely to recall brands than those earning the most. Brands making waves: The most commonly recalled brands were the mobile operators themselves, most notably Verizon and AT&T, followed by mobile service providers (ringtones, games, music, dating) and handset manufacturers.

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CHAPTER 16 RECOMMENDATION

DEAL WITH GSM PLAYER: The persisting scenario of the telecom sector shows division among existing operators and new players- based on interconnection charges. The new GSM players have proposed TRAI to cut down termination charges to 10 paisa a minute to compete with the existing operators. Currently, mobile operators like Airtel, Vodafone and Idea Cellular charge 30 paisa a minute from an operator on whose network the call ends. Removing Mobile Termination Charge would make calls made from (the new players) network and terminating on (anothers) on a par (with) established GSM operators, a a telecom player said. According to new players like Dotcom, Unitech, Swan Telecom, Shyam, Loop and Reliance Communications, they would be able to cut mobile tariffs by at least 50% or more if termination charges are set below 10 paise a minute. The cut in charges is going to affect existing players launch plans in the rural areas as this would reduce revenue. Offer for both CDMA and GSM - greater assortment Offer plans for 2 years, with upgrade options Key advantage over other (non-operator) retailers - presence in both retailing and airtime Key advantage over operators - not tied to technology (as an MVNO)

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CHAPTER 17 CONCLUSIONS

Collaboration can help to improve margins and delivery systems. Collaboration between Mobile Manufactures and Mobile operators would help to realise improved margins and build better delivery systems as far as the retail stage. But the industry needs to perpetuate a culture of innovation However, beyond collaboration and innovation the industry needs to commercialize that innovation. Product innovation and services offer the key to growth over the long-term. Investment in the innovation of products, services and business processes can result in quantum jumps in profitability for a company. Significant growth in revenue will only come by bringing exciting new products and services to customers. Isolating innovation from mainstream business can produce a dangerous cultural side effect: a perception that creativity and leadership are opposites. In this situation, innovators could lack the visibility and clout to compete for the resources which are necessary for success. Only when innovators operate with the credibility of leaders will innovation become a productive part of everyday success. Common Goal that could be followed 1. Working towards the achievement of operational excellence; 2. Collaborating with buyers; and 3. Innovation. 4. Commercializing that innovation

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CHAPTER 18 BIBLIOGRAPHY

http://cs.stanford.edu/people/thathoo/retail.pdf http://retail-guru.com/mobile-handset-retailer-spice-retail-acquired-by-global-access/ http://www.itpro.co.uk/625501/top-10-future-trends-for-mobile-phones http://www.marketing-intelligence.co.uk/help/Q%26A/question24.htm http://www.seminarprojects.com/Thread-study-of-consumer-buying-behaviour-towards-mobilepre-paid-products-and-handset-model#ixzz1Tg4Ces29 http://www.personeel.unimaas.nl/westra/PhDMaBateaching/GraduationStudents/StephanJansen2007/Stephan_Jansen2007.pdf http://www.asiamarketresearch.com/glossary/brand-recall.htm http://www.trai.gov.in/Default.asp http://www.dot.gov.in/

BOOKS REFERRED:
Mobile Marketing: Achieving Competitive Advantage through Wireless Technology

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