Idea Report

SUMMER INTERNSHIP PROJECT REPORT
2008-2010
Corporate Guide
Mr. Yugal Kishore
Asst. Marketing Head
Submitted By
Abhishek Khare
2008MBA-01
ABV-IIITM, Gwalior
!dea, GWALIOR Page 1
ACKNOWLEDGEMENT
This report bears the imprint of many people. Right from the
experienced staff of Idea Cellular Ltd, to the staff of Atal Bihari
Vajpayee Indian Institute of Information Technology and
Management without whose support and guidance I would have not
got the unique opportunity to successfully complete my internship in
this esteemed organization.
I would like to thank Mr. Amaljeet Singh, who allow me to do this
project in Idea Cellular Ltd successfully.
I take this opportunity to express my deep gratitude to all the

employees of, Idea, Gwalior. Also I am indebted for the rich guidance,
knowledge and suggestions provided by my guide, Mr. Yugal Kishore
who took sincere efforts and illustrated the Marketing Concept and
channel development in Idea Cellular Ltd, with their vast knowledge in
the field, which helped me in carrying out my internship.
Last but not least, I also thank all those people whom I met in the
industry during my internship and helped me to accomplish my
assignments in the most efficient and effective manner.
Date: 30/07/09 Abhishek Khare
Place: Gwalior

Table of Content
1) Objective of the project....................................5-6
2) Overview of telecom industry.7-17
Telecom Industry in India
History of Indian Telecommunications
Classification of Telecommunication services
The Key players in the Telecom Market in India
Subscribers
Market Share of the Telecom Company in India
3) Introduction of Idea Cellular18-26
Introduction
Our Service Areas
Established Service Areas
New Service Areas
Holding
Mission
Board of Directors
Corporate Leadership Team
Circle Heads
Brand Information
4) Research Methodology.27-31
Definition of Research
Types and Techniques
Tools used
Limitation of the study
5) Data Analysis & Interpretation.32-39

Questionnaires for the customer
6) Telecom Market Share in Gwalior..40-45
7) Distribution channel of idea.46-56

Introduction
Distribution Strategy
Selecting members within a channel
Motivating Channel Members
Sales Organization structure

Distribution channel of idea in Gwalior
Visit with TSM
Customer Interaction when visit with FOS
8) Channel Management..57-61
9) Observation and Finding62-64
10) Bibliography.65-67

Objective Of the
Project
OBJECTIVES OF THE PROJECT
1. To find out the perception of the general people towards the land line & Mobile phone.

2. To find out the telecom market share of different companies in Gwalior.
3. To find out the consumer satisfaction towards the different plans offered by the company.
4. Managing the distribution channel of idea cellular.

Overview of telecom
industry

Telecom Industry in India
The telecom industry is one of the fastest growing industries in India. India has nearly 200 million
telephone lines making it the third largest network in the world after China and USA. With a growth
rate of 45%, Indian telecom industry has the highest growth rate in the world.
- Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the
growth in demand in countries like India and China.
- Indias mobile phone subscriber base is growing at a rate of 82.2%.
- China is the biggest market in Asia Pacific with a subscriber base of 48% of the total Subscribers in
Asia Pacific. Compared to that Indias share in Asia Pacific Mobile Phone market is 6.4%. Considering
the fact that India and China have almost comparable populations, Indias low mobile penetration
offers huge scope for growth.
History of Indian Telecommunications
Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of
British power). Telephone services were introduced in India in 1881. In 1883 telephone services were
merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After
independence in 1947, all the foreign telecommunication companies were nationalized to form the
Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications.
Telecom sector was considered as a strategic service and the government considered it best to bring
under state's control.
In 1990s, telecommunications sector benefited from the general opening up of the

economy. Also, examples of telecom revolution in many other countries, which resulted in better quality
of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in
opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the

first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In
1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to
facilitate the growth of the telecom sector.
Telecommunication sector in India can be divided into two segments: Fixed Service
Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic
long distance and international long distance services. The state operators (BSNL and MTNL), account for
almost 90 per cent of revenues from basic services. Private sector services are presently available in
selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private
services focus on the business/corporate sector, and offer reliable, high- end services, such as leased
lines, ISDN, closed user group and videoconferencing.
Cellular services can be further divided into two categories: Global System for Mobile Communications
(GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodafone-
Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up
of international and domestic long distance telephony services are the major growth drivers for cellular
industry. Cellular operators get substantial revenue from these services, and compensate them for
reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in
tariffs for airtime, national long distance, international long distance, and handset prices has driven
demand.
India added 13.82 million new mobile subscribers in February 09, down from 15.41 million a month
earlier, according to Indian telecom regulator TRAI. Indias total number of mobile subscribers rose to
376.12 million at end-February from 362.30 million at the end of January.
While China added 18.55 million new mobile phone subscribers in the first two months of 2009 and total
wireless subscriber base stood at 659.78 million as of end-February 2009. China Mobile subscribers sent
607.1 billion SMSs last year, up by over 100 billion from the last year, and downloaded more than 76
million full music tracks.

Indias GSM subscribers totaled 277.5 million by end-February, accounting for nearly 75% of
total wireless market share. According to figures released by the Cellular Operators Association of India
(COAI), GSM players added 10.84 million new subscribers in March, taking total GSM subscriptions for
the fiscal year to 288.3 million. The numbers exclude subscriptions for Reliance Communications, the
CDMA service provider that recently launched GSM services, because the company does not reveal GSM
numbers separately. If the estimates of 2.5 million to 2.7 million GSM subscribers for Reliance
Communications are added, the total monthly increase for GSM subscriptions will be 13.54 million.
At this rate, Indias GSM subscriber base is growing at more than double the monthly growth rate of
China, which is adding around 6 million customers every month.
Though March has more days and companies push sales at the end of the financial year, we expect to
see monthly incremental growth of 14 to 15 million consumers in 2009-10. Our estimate is that mobile
penetration will go up from 35% currently to 50% by the end of this financial year, said TV
Ramachandran, COAI secretary- general.
COAI has predicted that India will have around 500 million GSM subscribers by the end of 2009-10 and
over 800 million by 2012. The country would hit the one billion markets in a few years after that.
COMPANY USERS AT MARCH 2009
AIRTEL 93923248
VODAFONE 68768998
BSNL 46684049
IDEA 43022799
AIRCEL 18478325
RELIANCE TELECOM 11145176
MTNL 04176676
BPL 02164211
This table shows the present status of GSM players in India, where Bhari Airtel is leading then at 2 nd
position Voafone-Essar group is present after that Bharat Sanchar Nigam Limited with customer of 4 Cr is
present. Idea Cellular with 43022799 is present then Aircel, Reliance GSM, MTNL and BPL are at 5 th, 6th,
7th and 8th position respectively.
The pie chart below shows that percentage of market capture in terms of customer.
The Chart shows that in GSM service 35% of the total market captured by Airtel, 25% market captured by
Vodafone, 17% market captured by BSNL, 16% market captured by Idea and then rest are follows.
Market research firm Gartner Inc. Forecasts India will spend 739 billion rupees ($16.34 billion) on
telecom services and equipment in 2006, up 27.3 percent from this year. Forecasted Growth of Indian
Telecom Spending Through 2009:-

India rupees (millions) 2004 2005 2006 2009 CAGR 2004-2009 AGR 04-05 AGR 05-06
Telecom spending 501,009 581,101 739,910 1,419,062 23.1% 16% 27.3%
Source: Gartner Inc.
Revenue of Telecom Industry in India:-
Continuing its robust growth, the Indian telecom industry saw its gross revenues growing 2.6 percent to
more than Rs.40, 000 crore in the quarter ending March 31, said the sectoral watchdog here on Monday.
According to the Telecom Regulatory Authority of India (TRAI), the gross revenue of the telecom sector
for the period under review stood at Rs.40, 444.66 crore, as against Rs.39, 408 crore in the previous
quarter. The state-owned operators -- Bharat Sanchar Nigam and Mahan agar Telephone Nigam --
together earned Rs.10, 599 crore, while private players raked in Rs.29, 846 crore. TRAI said India's total
subscriber base reached 429.72 million by March-end, as against 384.79 million for the quarter ending
December, registering a growth of 11.68 percent.
Tele-density, too, increased 36.98 percent from 33.23 percent in the previous quarter.
The subscriber base of wireless and wire line increased to 391.76 million and 37.96 million respectively.
However, rural wire line decreased from 10.68 million to 10.58 million, a decrease of 0.93 percent.
According to the watchdog, the ARPUs (average revenue per user) continued to fall, decreasing 6.82
percent from Rs.220 in December-end to Rs.205 in March.

The number of Internet wire line subscribers increased 5.3 percent to 13.54 million in the
fourth quarter as against 12.85 million in the same period a year before.
Sales of cellular companies in India (Jun 09):-
Gross Profit cellular companies in India (Jun 09):-

Classification of Telecommunication services
1. Basic services
2. Cellular services
3. Internet Service Provider (ISP)
The Key players in the Telecom Market in India
Cellular Service provider:

1. BSNL
2. Airtel
3. Vodafone
4. Idea
5. Reliance

6. Tata indicom
7. Aircel
8. Spice
9. MTNL
Subscribers
Wireless subscribers crosses 200 million mark

Tele density reaches 21.20%
The total number of telephone subscribers has reached 241.02 million at the end of August 2007 as
compared to 232.87 million in July 2007. The overall teledensity has increased to 21.20% in August 2007
as compared to 20.52% in July 2007.
In the wireless segment, 8.31 million subscribers have been added in August 2007 while 8.06 million
subscribers were added in July 2007. The total wireless subscribers (GSM, CDMA & WLL (F)) base reaches
201.29 million at the end of August 2007.
The wire line segment subscriber base stood at 39.73 million with a decrease of 0.16 million at the end
of August 2007. Circle wise wire line subscriber base of service providers is given at following chart.

Market Share of the Telecom Company in India

Introduction
Of
Idea
Cellular
INTRODUCTION
As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to operate in 11 circles. With
a customer base of over 17 million, IDEA Cellular has operations in Delhi, Maharashtra, Goa, Gujarat,
Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh and
Kerala. IDEA Cellular's footprint currently covers approximately 45% of India's population and over 50%
of the potential telecom-market.
As a leader in Value Added Services, Innovation is central to IDEA's VAS Factory. It is the first cellular
company to launch music messaging with 'Cellular Jockey', 'Background Tones', 'Group Talk', a voice
portal with 'Say IDEA' and a complete suite of Mobile Email Services.
Idea Cellular is a wireless telephony company operating in various states in India. It initially started in
1995 as a join venture between the Tatas, Aditya Birla Group and AT&T by merging Tata Cellular and Birla
AT&T Communications.
Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004 gave Idea a
truly pan-India presence covering Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh,

Madhya Pradesh, Chattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan and
Delhi (inclusive of NCR).
The company has its retail outlets under the "Idea n' U" banner. The company has also been the first to
offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban areas.
IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange
(BSE) and the National Stock Exchange (NSE) in March2007.
IIDEA Cellular is a leading GSM mobile service operator with pan India licenses. With a customer base of
over 44 million in 17 service areas, operations are soon expected to start in Chennai Metro; Kolkata &
West Bengal, North East & Assam, and J&K.
A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the
most customer friendly and competitive Pre Paid offerings, for the first time in India, in an increasingly
segmented market. From basic voice & Short Message Service (SMS) services to high-end value added
services such as Mobile TV, Games etc - IDEA is seen as an innovative, customerfocusedbrand.
IDEA 'Women's Card' caters to the special needs of women on the move, and 'Youth
Card' covers the emerging youth segment. IDEA 'My Gang' - the widely popular community user group
product recently bagged the prestigious 'Golden Peacock Award 2008' under the Most Innovative
Product category at the "19th World Congress on Total Quality".
A brand known for many firsts, IDEA was the first to launch GPRS and EDGE in India.
IDEA has partnered with Research in Motion (RIM) to offer Blackberry services on its network. IDEA
'Net Setter'- Plug & Play, EDGE enabled USB Data Card offers affordable data connectivity with faster
speed and consistency.
IDEA offers seamless coverage to roaming customers traveling to any part of the country, as well as to
international traveling customers across over 200 countries. IDEA Cellular has partnership with over

400 operators worldwide to ensure that customers are always connected while on the move,
across the globe.
IDEA has received several national and international recognitions for its path-breaking innovations in
mobile telephony products & services. It won the GSM Association Award for "Best Billing and Customer
Care Solution" for 2 consecutive years. It was awarded "Mobile Operator of the Year Award - India" for
2007 and 2008 at the Annual Asian Mobile News Awards.
Our Service Areas
The Indian telecommunications market for mobile services is divided into 22 "Service Areas" classified
into "Metro", Category "A", Category "B" and Category "C" service areas by the Government of India.
These classifications are based principally on a Service Area's revenue generating potential. Our 17
operational Service Areas are broken up into Established and New Service Areas
Established Service Areas
The established service areas are Delhi, Andhra Pradesh, Gujarat, Maharashtra, Haryana, Kerala, Madhya
Pradesh and Uttar Pradesh (West).
Licenses for the Maharashtra and Gujarat Service Areas were awarded in December 1995, with network
rollout and commercial launch achieved in 1997. In January 2001 the mobile operations in Andhra
Pradesh Service Area were integrated with IDEA through a merger with Tata Cellular Limited.
In June 2001, the mobile operations in Madhya Pradesh Service Area were fully integrated
with IDEA through an acquisition of RPG Cellcom Limited. In October 2001, the license for Delhi Service
Area was acquired during the fourth mobile license auction, with network rollout and commercial launch
in November 2002.
In January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was acquired
with its original licenses in the Service Areas of Haryana, Uttar Pradesh (West) and Kerala. All these
Service Areas were re-branded and integrated with IDEA in June 2004

New Service Areas
The New Service Areas are Uttar Pradesh (East), Rajasthan, Himachal Pradesh, Bihar, Mumbai, Karnataka,
Punjab, Orissa and Tamil Nadu ,Licenses for Uttar Pradesh (East), Rajasthan and Himachal Pradesh were
acquired through the acquisition of Escotel (Escorts Telecommunications Limited).
Brand Idea was launched in Karnataka and Punjab, through the acquisition of
Spice Communications. Idea launched its services in Mumbai and Bihar in 2008. The Mumbai launch was
the largest Metro City launch in India. In Bihar, Idea acquired 500,000 subscribers in just over 100 days.
Holding
Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the company. But following
AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its 32.9% stake in Idea.
This stake was bought by both the Tatas and Birlas at 16.45% each.
Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a
CDMA-based mobile provider, cropped differences between the Tatas and the Birlas. This dual holding by
the Tatas also became a major reason for the delay in Idea being granted a license to operate in Mumbai.
This was because as per Department of Telecom (DOT) license norms, one promoter could not have
more than 10% stake in two companies operating in the same circle and Tata Indicom was already
operating in Mumbai when Idea filed for its license.
The Birla thus approached the DOT and sought its intervention, and the Tatas
replied by saying that they would exit Idea but only for a good price. On April 10, 2006, the Aditya Birla
Group announced its acquisition of the 48.18% stake held by the Tatas at Rs. 40.51 a share amounting to
Rs. 44.06 billion. While 15% of the 48.14% stake was acquired by Aditya Birla Novo, a company in-charge
of the Birlas' new business initiatives, the remaining stake was acquired by Birla TMT holdings Private
Ltd., an AV Birla family owned company. Currently, Birla Group holds 98.3% of the total shares of the
company.
Idea has successfully launched 3 more new circles (states) in India viz. Rajasthan, Himachal Pradesh and
UP (East) to make itself a pan-India player. Recently, Idea got licenses to operate in Mumbai & Bihar. They
are awaiting the spectrum from Dot.

Mission
Key People
Board of Directors
Mr. Kumar Mangalam Birla (Chairman)

Smt. Rajashree Birla
Mr. Saurabh Mishra
Mr. Sanjeev Aga (Managing Director)
Mr. Arun Thiagarajan
Ms. Tarjani Vakil
Mr. Mohan Gyani
Mr. Gian Prakash Gupta
Mr. R.C. Bhargava
Mr. P. Murari
Mr. Biswajit A. Subramanian
Dr. Hansa Wijayasuriya

Management Team
Corporate Leadership Team
Mr. Sanjeev Aga, Managing Director
Mr. Akshaya Moondra, Chief Financial Officer
Mr. Anil K. Tandan, Chief Technology Officer
Mr. Prakash K. Paranjape, Chief Information Officer
Mr. Pradeep Shrivastava, Chief Marketing Officer
Mr. Navanit Narayan, Chief Service Delivery Officer
Mr. Vinay K. Razdan, Chief Human Resource Officer
Mr. Ramjet K. Mukarji, Chief Corporate Affairs Officer
Mr. Rajesh K. Srivastava, Chief Materials & Procurement Officer
Mr. Ambrish Jain, Director - Operations
Mr. Himanshu Kapania, Director Operations
Brand Information.
The brand Idea

It is almost impossible to disintegrate brand Idea from the corporate Idea. Brand values are the
company values and vise versa.
Brand Vision: It goes without saying that the brand vision of idea mirrors the companys vision. The
brand mission statement is...... To be the most customer-focused mobile service brand, continuously
innovating to help liberate our customers from the shackles of time & space.
IDEA - Brand Values
Innovate. Stimulate. Liberate....
It is these brand values, which have made us a formidable player in the telecom industry. Innovations
that stimulate the customer and liberate him from the shackles of time and space are the core of our
brand. This is what we strive for. Nothing more, nothing less, nothing else.
IDEA - Brand Mission
The India footprint Idea

Anywhere connectivity - bringing India closer.
The Technology Advantage Idea

Tomorrow's technology to enrich today.
The Customer Focus Idea

Make a single interaction a lasting relationship.
The Employee Focus Idea

Nurture the roots that nurture our ideas.

Brand Initiatives
Our aim, through media buying and planning, is to create year round impact. With the objective of
strengthening our brand, we work with strategic communication partners on campaigns like sponsorship
of the Idea International Indian Film Academy awards and the television programs Idea Rocks India,
Idea Star Singer and Idea Andhra Idol. We seek engagement with subscribers on a variety of levels,
from major celebrity fashion shows to small local events timed to coincide with new product offerings.
Since August 2003, we have commissioned a Brand Track Index Study to evaluate the
health of our brand. The Brand Track Index Study is a monthly study conducted by TNS, a marketing
consultant engaged by us to evaluate our brand using face-to-face interviews on a random sample of
mobile users a well as those intending to purchase mobiles within the next three months. According to
the study our brand is perceived as reliable/trustworthy and one that offers cheaper and good
promotional offers. We have improved our rating in the Brand Track Index calculated by the study in the
past year reflecting, we believe, the growing strength of our brand.
The main communication medium for the Idea brand is television, where we seek
strategic Idea brand coverage in various formats. Billboards and hoardings are used as a secondary
medium, customized for specific regional preferences to communicate effectively at the local level. We
also use other mass communication media such as the press and radio to communicate price plans and
other tactical and customer information.
All our key initiatives are subjected to a rigorous testing and launch process to ensure
accountability for all advertising spend and improve the chances of success of a new product. This
process is followed up with extensive briefing of call center agents and sales personnel and real-time
tracking of the impact of the communication and feedback from subscribers.

Research
Methodology

Definition of Research
The word research is derived from the Latin word meaning to know. It is a systematic and a replicable
process, which identifies and defines problems, within specified boundaries. It employs well-designed
method to collect the data and analyses the results. It disseminates the findings to contribute to
generalize able knowledge. The characteristics of research presented below will be examined in greater
details later are:
Systematic problem solving which identifies variables and tests relationships between them,
Collecting, organizing and evaluating data.
Logical, so procedures can be duplicated or understood by others
Empirical, so decisions are based on data collected
Reductive, so it investigates a small sample which can be generalized to a larger population
Replicable, so others may test the findings by repeating it.
Discovering new facts or verify and test old facts.
Developing new scientific tools, concepts and theories, which would facilitate to take
decision?
For the proper analysis of data simple statistical techniques such as percentage were use. It helps in
making more generalization from the data available. The data which was collected from a sample of

population was assumed to be representing entire population was interest. Demographic
factors like age, income and educational background was used for the classification purpose.
Sample size
For carrying out any research or study on any subject it is very difficult to cover even 10% of the total
population. Therefore the sample size has to be decided for a meaningful conclusion. For designing the
sample size, it was thought proper to cover a very small percentage of population in various age groups.
The method used for sample technique was non probability convenience sampling method. This method
is used because it is known previously as to whether a particular person will be asked to fill the
questionnaire. Convenient sampling is used because only those people will be asked to fill the
questionnaires that were easily accessible and available to the researcher.
Considering the constraints, it was decided to conduct the study based on sample size of 100 people in
specific age groups. Scientific method is not adopted in this study because of financial constraints and
also because of lack of time; also the basic aim of doing the research is academic, hence most
convenient way is selected.
TYPES & TECHNIQUES

The study conducted is a conclusive descriptive statistical study; the researcher comes to the decision
which is precise and rational. The study is conclusive because after doing the study the researcher comes
to a conclusion regarding the position of the brand in the minds of respondents of different firms groups.
The study is statistical because throughout the study all the similar samples are selected and group
together. All the similar responses are taken together as one and their percentages are calculated.
Thus, this, conclusive descriptive statistical study is the best study for this purpose as it provides the
necessary information which is utilize to arrive at a concrete decision.
TOOLS USED
To know the response I have used the questionnaire method in sample survey. If one wishes to find what
people think or know, the logical procedure is to ask them. This has lead marketing researchers to use
the questionnaire technique for collecting data more than any other method. In this method
questionnaire were distributed to the respondents and they were asked to answer the questions in the
questionnaire. The questionnaires were structured non-disguised questionnaire because the questions,
which the questionnaire contained, were arranged in a specific order besides every question asked was
logical for the study, no question can be termed as irrelevant.
The questionnaire, were non-disguised because the questionnaire were constructed so that the
objective is clear to the respondent. The respondents were aware of the objective. They knew why they
asked to fill the questionnaire.

LIMITATIONS OF THE STUDY
The research will be conducted in a limited area.
The internet information can be irrelevant.
Time will be a major constraint.
The respondent will be limited so cannot be treated as a whole population.
The respondent may be biased.
Due to language problem it is possible that the respondents are not be able to understand the
questionnaire and can cause misleading results.

Data Analysis &
Interpretation

Questionnaires for the customer
DATA ANALYSIS & INTERPRETATION
Q1. Which cellular service do you use?
Options Percentage of respondents
Airtel 34
Idea 28

Tata indicom 5
Q2. Which service you r using?
Options Percentage of respondents
Prepaid 95
Postpaid 5

Q4. Are you using lifetime or general plan?
Option Percentage of respondents
Lifetime 73
General 27

Q5 Are you satisfied with the lifetime plan which you are using?
Yes 78
No 22

Q6. Which facility attracts you most in the lifetime plan?
Call rates 15
Massage Tariff 1
Night Tariff 1
Validity 83
Q7. Rate of the satisfaction level with the services of your present lifetime plan?

Fully satisfied 14
Satisfied 47
Average 27
Dissatisfied 8
Highly dissatisfied 2
8. Why you chose lifetime plan?

For incoming purpose only 23
For money saving 48
For the facilities provided in the plan 29

Telecom Market
share in Gwalior
Here we have prepared some questionnaires from the retailers point of view and tried to find out the
market share of the following telecom industry in Gwalior:
1. Idea
2. Smart
3. Airtel

4. Vodafone
Findings:-
In the survey of Gwalior city found this result by approaching different- different retailer who deals in the
communication products and find out result in Gwalior city with the help of questionnaire. This finding is
based on only last month result because we have to find out what is happened in last month after new
launch of Vodafone in Gwalior.
In chart-1 result shows that clearly that over 50% of the retailer pushes idea to the customer whereas
Airtel is also good in Gwalior, 31% of the retailer pushes it.
Chart -2 shows about Customer choice. Idea is leading here with 41% while Vodafone (35%) shows a
great fight in this because it is launch recently in Gwalior and providing some great offers to attract new
customer for building its reputation and market in Gwalior.
While Airtel seems to be at 3rd position with 22% of customers choose it.

Chart-3 shows about the company which care most customer and retailers, here also Idea has a big lead
over other GSM service providers with 61% of retailer told idea is best and 33% told Airtel is best while
Smart is very poor and Vodafone is new in market so it is difficult to tell about Vodafone.
Chart -4 shows about Most Recharge sold in last month, because of a good market and leading in
customer in Gwalior Idea leads with 73%. Means 73% retails told that Idea recharges they sell most in
last month whereas Airtel and Vodafone recharges sold only at 12 and 13 % shops.

Chart-5 shows the total no of activation of Sims in last month. Vodafone has done a great job with 1038
activation at approx 50 shops because of new exciting offers (99 value voucher which gives Unlimited
calling to any Vodafone number in MP&CG for one months and many more).While idea is on 2 nd with 679
and Airtel on third with 496.Smart is at last with only 166 activation because of its poor network.
Chart - 6 shows the overall rating given by retailer, which shows a close competition between Idea and
Airtel but idea has rated more than Airtel. In this rating 1 is for highest and 5 is for lowest. Idea got 1.38,
Airtel got 1.69, Smart got 3.9 and Vodafone got 2.9.

Chart -7 shows average stock available at retailer. An idea has a good market and no of activations is also
more than any other provider so retailers have more stock of idea than any others. Vodafone has facing
some problems in stock so average stock of Vodafone is only 3, idea has average stock of 19, Airtel has
12 and Smart has 14.
Chart -8 shows average balance in forms of both i.e. electronic recharge and paper recharge available at
retailer. Total number of idea customer is more in Gwalior so retailer has to make a huge balance for idea
so average balance available at retailer of Idea is 6067 Rs, Airtel is also improving very quickly so it has
average balance of 4493 Rs and smart and Vodafone has 3433 and 2798 Rs respectively.

Distribution Channel of
Idea
Distribution channel of idea
Introduction

Distribution is all about getting your product/service to the right people at the right time with
special consideration for profit and effectiveness. Successful marketing does not end when a business
has developed a product/service and has found its appropriate target audience with a view to selling it at
the 'right price'.
The next issue that needs to be faced is how they are going to distribute and sell this product/service to
these people- the consumers.
When a product/service is purchased by a consumer, it may have been bought directly from the
business, or it may have been through a number of intermediaries (wholesaler, retailer, etc):
theseareknownasdistributionchannels.
Small businesses need to acknowledge the different types of distribution channels to utilize sales
potential. After reading the article, you may learn that you could increase sales or profit by using a
different distribution channel to the one that you currently use.
Distribution channels are influenced largely by the type and size of the business and so some of the
channels explained may not be feasible for your particular business.
Consequently, you may take note that these channels could be adopted in the future to accommodate
for any changes and to help your business grow.
Distribution Strategy

And trusted to act Distribution strategy is influenced by the market structure, the firm's
objectives, and its resources and of course its overall marketing strategy. All these factors are addressed
in the section on selecting Distribution Channels.
The first strategic decision is whether the distribution is to be: Intensive (with mass distribution into all
outlets as in the case of confectionery); Selective (with carefully chosen distributors e.g. specialty goods
such as car repair kits); or Exclusive (with distribution restricted to up market outlets, as in the case of
Gucci clothes).
The next strategic decision clarifies the number of levels within a channel such as agents, distributors,
wholesalers, retailers. In some Japanese markets there are many, many intermediaries involved.
Next comes a sensitive strategic decision whether to go single channel or multi-channel. Some
producers, like Manchester United FC, use multi-channels - they use many different routes, direct and
indirect, to bring their products to their customers. Multi-channel Systems like this are common where
intensive distribution is required. So direct marketing is combined with indirect marketing through
intermediaries.
Then comes the next level of strategic decisions concerning strategic relationships and partnerships. Two
common strategies are Vertical Marketing Systems and Horizontal Marketing Systems.
Vertical Marketing Systems involve suppliers and intermediaries working closely together instead of
against each other. They plan production and delivery schedules, quality levels, promotions and
sometimes prices. Resources, like information, equipment and expertise, are shared. The system is
usually managed by a dominant member, or 'channel captain'. VMS is more flexible than vertical
integration where the manufacturer actually owns the distribution channel, for example, Doctor Martens
boot manufacturers own their own retail store.
Horizontal Marketing Systems occur where organizations operating on the same channel level (e.g. two
suppliers or two retailers) co-operate. They then share their distribution expertise and distribution
channels. This can speed up the time taken to penetrate the market. There is room for creative alliances
here. See Southwestern Bell's alliance with Granada TV Shops in the Hall Of Fame.

Resources available affect distribution strategy. Who can handle outbound logistics, marketing
and sales, and servicing? Can the supplier afford to deliver small quantities, can it provide more trucks,
can its sales force 'push' products into national retail chains? Can the organization deal with thousands,
maybe even millions of customers - can it cope? Does it want to devote huge resources here or would it
prefer to utilize someone else's resources in return for a slice of the profits?
Difficult marketing dilemmas which make distribution strategy both critical and interesting. The sections
on Distribution Channels explore this in more detail.
Selecting members within a channel
Having decided to go through intermediaries the next question is whether to use agents or distributors
and also how many. Unlike distributors, agents don't hold stocks - they only act as sales agents finding
customers, collecting orders and passing them on to the supplier in return for a percentage commission.
How would you select a distributor or an agent? Here are some criteria:
1. Market Coverage, 2. Sales Forecast, 3. Cost, 4. Other Resources, 5. Profitability, 6. Control, 7.

Motivation, 8. Reputation, 9. Competition, 10. Contracts
1. Market Coverage: - does the profile of existing customers match your target market profile? - is the
number of customers big enough to meet the required distribution penetration? - is the existing sales
force big enough to cover the territory? - are they dependant on a single individual? - are the existing
delivery fleet and warehouse facilities adequate?
2. Sales Forecast: How many can they sell? What are their forecasts based upon? Do they give a 'best,
worst and average' forecast? Will they invest in large stock commitment? Do they have budgets to run
promotions? Some suppliers even ask their distributors for a marketing plan showing how they intend to
market the supplier's products.
3. Cost: What will it cost in terms of discounts, commissions, stock investment and marketing support?

4. Other Resources: Does the target market require anything special such as technical advice,
installation, quick deliveries, and instant availability? If so can the distributor provide it?
5. Profitability: How much profit will the distributor generate for the supplier?
6. Control: Do they have a reporting system in place? How do they deal with problems? How often is
review meetings scheduled? Can you influence the way they present your products?
7. Motivation: Does the agent or distributor convey a sense of excitement and enthusiasm about the
product? What about its sales force - what's their reaction?
8. Reputation: Has it got a good track record? This includes the number of years in business, growth and
profit record, solvency, general stability and overall reliability. Is it dependant on one key player?
9. Competition: Do they distribute any competitor's products?
10. Contracts: Some distributors demand exclusivity. Some agreements tie the supplier in for certain
periods of time. Check for flexibility in case things go wrong.
The bottom line is: Can the agent or distributor be motivated, controlled and trusted? Motivated to sell
your product among a range of others. Controlled to back results feed or change strategy if requested. As
a reliable ambassador of your product?
Motivating Channel Members
Imagine these three scenarios:
You are a producer of 'Grand Pens' a brand of fountain pens.

A customer seeks advice from a pen shop on which pen to buy and the retailer strongly
recommends yours.
A customer asks a retailer, who stocks your pen, for another brand called 'Bad Pens'. The retailer
recommends and offers your pen as superior.
A retailer actively solicits business for you by asking customers buying other products to come and have
a look at the exquisite 'Grand Pen'.
This retailer is obviously very motivated. 'Mindshare', as it is called in the USA, has to do with how
important your product is in the distributor's mind relative to the other lines they carry. Winning the
battle for the distributor's share of mind can be more important than many other marketing strategies. It
applies in industrial markets and consumer markets where intermediaries play important roles in the
distribution channel.
In reality, maintaining continually high levels of motivation among intermediaries presents a challenge. It
requires a reasonable quality product, creative promotions, product training, joint visits between
producer and distributor, co-operative advertising, merchandising and display.
Most of these apply to agents as much as distributors and retailers.
Keeping the intermediary stimulated is important. Positive motivators, like sales contests are preferred
to negative motivators like sanctions such as reduced discounts and the threat of terminating the
relationship. A positive reward works better than a negative punishment. Ideally there should be a
shared sense of responsibility - a partnership - a strategic partnership. The supplier and intermediary are
there to help each other. Vertical Marketing Systems are a good example.
Clear communications, covering sales goals, review meetings, reporting procedures, marketing strategy,
training, market information required, suggestions for improvements, all help. Regular contact through
visits, review meetings, dinners, competitions, newsletters, thank you letters, congratulatory awards all
help to keep everyone working closely together.
These are all non-financial incentives which provide a form of psychic income as opposed to financial
income. That's not to say that financial incentives aren't useful motivators, it just means that there are

other motivations there too. In fact the money spent on financial incentives is often spent
more effectively when the sales person is rewarded with a plaque, a gold pen or a holiday in the
Bahamas rather than just the cash which tends to get soaked up and lost in a sea of ordinary household
daily expenditure.
Non cash rewards appeal to the higher levels of Maslow's Hierarchy of Needs - belonging, esteem and
self actualization.
Despite this, conflict can occur when too many distributors are appointed within close proximity of each
other, or the producer engages in a multiple channel strategy of direct marketing as well as marketing
through intermediaries.
Carefully motivating distributors is vital if goods are to flow smoothly through the channel and reach
satisfied customers
Sales Organization structure

Distribution channel of idea in Gwalior
Distributor point Each Distributor Each target

of Gwalior share
3.00 cr. per month 2800
1.D.B ENTERPRISES 4,28,571 2800
2KRISHNA SALES 4,28,571 2800
3MAA VAISHNAB 4,28,571 2800

ENTERPRISES
4 JAI SHIV 4,28,571 2800
5R.R ENTERPRISES 4,28,571 2800
6 RAJ SALES 4,28,571 2800

7 MAYA 4,28,571 2800
Distributor Operations
Distributor Revenue/ month Activations /month Retailers covered
Maya Agency Rs 75 Lakhs 1600 325

D B Enterprises Rs 1.25 cr
Raj Agency Rs 40 Lakhs
Understanding operation at distributors end (Prism, Activation)
Runners for collection documents
FOS- collection, delivery, relationship building, communicating new schemes on day to day basis.
Billing system for Retailers
Plan 99 175 105 245

Claim per 20 Rs 35Rs Tie-up
sim
Slabs Activations Billing 99 175
A 50 55 85 105 145 50 35
B 25 to 49 55 85 105 145 40 25
C 10 to 24 55 105 130 175 30 10
D 1 to 9 55 105 130 175 20 0

Channel Management
Channel management
Channel Management. Yet another sales and marketing phrase that is thrown around like everyone
knows what it means. But so few companies really comprehend channel management in a way that
really helps them. Its really no wonder. Sales channels (being the conduits by which we distribute our
products to the end-user) come in many shapesfrom direct, to the web, to the traditional retail

environment. And, were just doing whatever we can to get any business from any of them!
But is that the most efficient and effective approach?
Thats where Channel Management comes in. Channel management, as a process by which a company
creates formalized programs for selling and servicing customers within a specific channel, can really
impact your businessand in a positive way! To get started, first segment your channels by like
characteristics (their needs, buying patterns, success factors, etc.) and then customize a channel
management program that includes:
1. Goals: - Define the specific goals you have for each channel segment. Consider your goals for
the channel as whole as well as individual accounts. And, remember to consider your goals for
both acquisition and retention.
2. Policies: - Construct well-defined polices for administering the accounts within this channel.
Be sure to keep the unique characteristics of each segment in mind when defining policies for
account set up, order management, product fulfillment, etc.
3. Products: - Identify which products in your offering are most suited for each segment and
create appropriate messaging. Also, determine where your up sell opportunities lie.
4. Sales/Marketing Programs: - Design support programs for your channel that meet THEIR
needs, not what your idea of their needs are. To do this, you should start by asking your
customers within this segment, how can we best support you in the selling and marketing of
our products? That being said, the standard considerations are product training, co-op
advertising, seasonal promotions, and merchandising. Again, this is not a one-size fits all, so be
diligent about addressing this segments SPECIFIC needs in these areas.
Defining a channel management strategy for each segment allows you to be more effective within each
segment, while gaining efficiency at the same time. Still, maintaining brand consistency across all
channel segments is critical to your long-term success. So find a good balance between customization
and brand consistency and youll be on your way to successful channel management.

Visit with TSM
We met with distributor & FOS and made understand that how to deal with retailers and how to sale
our product and how to follow our channel perfectly and effectively and how to gave them satisfaction
with company polices.
Areas Covered: Bada ,Murar,Hazira
23 retailers covered
Tasks Handled: Relationship Building, Issues Handling, Report generation, details about new
schemes, Target achieved status
Observations:
Idea Branding poor at some stores ( Visit by Airtel Sales Head)
Process started
We went to distributor point where we saw there were some people (FOS & distributor) who had a chain
by which they worked together. Every FOS had particular market in that market they collected money
and gave them sim card and paper Boucher& e-Boucher and gave that money to the distribute point.
Customer Interaction when visit with FOS

We went to new retailer with FOS and convince them to joint with telecom market, and gave
them some beautiful offer to started their business with low amount
Tasks: Distribution of Stocks (SIMs, Vtopup), revenue collection, issue handling, collecting
documents
Areas Covered:fruit mandi, Hazira
Description of the process started
This is the description of the process of distribution of the SIM and recharches and during the whole
process our work was to manage the channel and by managing the channel to increase the revenue of
the outlets.

Observation and
Findings

OBSERVATION & FINDINGS
55% of the people use only mobile, and 40% of respondents use both the services & only 5%
people use the telephone service. It shows the popularity of cellular phone services.
34% of respondents are using the idea services, which is the highest percentage of users of
cellular phone. Airtel takes 2nd place in Gwalior with 28% of users. Then comes reliance and
BSNL, and tata indicom having least customers in the Bhopal.
Prepaid service is most popular in the cellular services with 95% of customers. The remained
uses postpaid services.
In current situation 73% of respondents are using lifetime plans, where the rest are using general
plan of the cellular companies.

64% of respondents are satisfied with the call rates of the lifetime plans; it is because
telecom companies have slashed their call rates few months ago. Still in this situation 36% of
respondents did not satisfy with the call rates which service they are using.
In the lifetime plan of cellular companies most of the respondents are using this service because
of its validity period with 83% of answer. Where 15% of people like this services because of its
call rates.
78% of customer satisfied with the lifetime plans of cellular companies, and which are not satisfy
with the service they are mostly BSNL and TATA indicom users.
Most of the people are using lifetime services because of money savings with the percentage of
48. Where 29% of people like this service because of the facilities provided by the operators.
And 23% of people are using this service because of incoming only.
CONCLUSIONS
In Gwalior it is found that idea is the market leader in the lifetime plan segment. People like the lifetime
plans provided by the companies. And airtel having 2 nd highest customers in Gwalior.
TATA indicom having least customers in Gwalior, where Reliance and BSNL having almost equal percent
of customer
But they are not aware about the bound of cellular companies with TRAI, that cellular companies can
deliver their services till their license have validity, they have to renew it for providing further service.
SUGGESTIONS
In the lifetime plans, cellular companies should reduce the call rates.

They should provide other facilities like massage and minimum call rates in the same network.
They should make aware the customers that they have limited license period.
They should not take other hidden charges.
There should not be any compulsion that customer have to recharge their card in 180 days with
certain amount. This is the main drawback of the lifetime validity plan.

Bibliography
BIBLIOGRAPHY
Books:
Philip Kotler, marketing management prentice Hall of India Pvt. Ltd. New Dehli.
C. R. Kothari Research methodology, vishwa publication, New Delhi.
Saxena Rajan marketing management Tata McGraw-hill publication Co. Ltd. New Delhi.

H. V. Verma marketing of services Global business press, New Delhi.
Business today magazine of February issue, 2008.
Web Resources:
www.trai.gov.in
http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx
http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_home.jsp
http://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdea
http://www.bsnl.co.in/about.htm
http://www.bsnl.co.in/service/tariff_excel_pre.htm
http://210.212.144.243/utility/tariff.htm
http://www.trai.gov.in/trai/upload/PressReleases/15/pr16jan06.pdf
www.airtel.in

http://www.rcom.co.in/webapp/Communications/rcom/index.jsp

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SUMMER INTERNSHIP PROJECT REPORT

I take this opportunity to express my deep gratitude to all the

Date: 30/07/09 Abhishek Khare

!dea, GWALIOR Page 2

The Key players in the Telecom Market in India

5) Data Analysis & Interpretation.32-39

7) Distribution channel of idea.46-56

Selecting members within a channel

Motivating Channel Members

Sales Organization structure

9) Observation and Finding62-64

!dea, GWALIOR Page 4

OBJECTIVES OF THE PROJECT

!dea, GWALIOR Page 5

4. Managing the distribution channel of idea cellular.

!dea, GWALIOR Page 6

!dea, GWALIOR Page 7

History of Indian Telecommunications

In 1990s, telecommunications sector benefited from the general opening up of the

!dea, GWALIOR Page 8

!dea, GWALIOR Page 9

COMPANY USERS AT MARCH 2009

RELIANCE TELECOM 11145176

Telecom Spending Through 2009:-

!dea, GWALIOR Page 11

Telecom spending 501,009 581,101 739,910 1,419,062 23.1% 16% 27.3%

Source: Gartner Inc.

Revenue of Telecom Industry in India:-

!dea, GWALIOR Page 12

Sales of cellular companies in India (Jun 09):-

Gross Profit cellular companies in India (Jun 09):-

!dea, GWALIOR Page 13

3. Internet Service Provider (ISP)

The Key players in the Telecom Market in India

Cellular Service provider:

!dea, GWALIOR Page 14

Wireless subscribers crosses 200 million mark

!dea, GWALIOR Page 15

!dea, GWALIOR Page 16

!dea, GWALIOR Page 19

!dea, GWALIOR Page 20

Our Service Areas

Established Service Areas

!dea, GWALIOR Page 21

!dea, GWALIOR Page 22

Mr. Kumar Mangalam Birla (Chairman)

!dea, GWALIOR Page 23

Mr. Sanjeev Aga, Managing Director

Mr. Akshaya Moondra, Chief Financial Officer

Mr. Anil K. Tandan, Chief Technology Officer

Mr. Prakash K. Paranjape, Chief Information Officer

Mr. Pradeep Shrivastava, Chief Marketing Officer

Mr. Navanit Narayan, Chief Service Delivery Officer

Mr. Vinay K. Razdan, Chief Human Resource Officer

Mr. Ramjet K. Mukarji, Chief Corporate Affairs Officer

Mr. Rajesh K. Srivastava, Chief Materials & Procurement Officer

Mr. Ambrish Jain, Director - Operations

Mr. Himanshu Kapania, Director Operations

The brand Idea

!dea, GWALIOR Page 24

IDEA - Brand Values

Innovate. Stimulate. Liberate....

IDEA - Brand Mission