RELIABLE INDUSTRIES LIMITED

Market Segmentation
Discovering Target market- Pre Launch of 4Gservice
5/14/2012

By : Group No 4 Section 1 MBA (F&B) - April 2012

Ankit jain Abhiraj Chakraborty Chinmay Sharma Gopal Sharma Kumar Anshuman

Market Segmentation For Communication Service Provider Industry

Market segmentation is a concept and a process well known and largely used worldwide, in most business environments. It is basically a process of grouping customers into homogenous groups in order to optimize the use of resources and increase efficiency, be it in terms of product adoption, communication and branding, distribution or pricing.From the start, it is assumed that the telecom company owns huge amounts of data about customers, from various sources. Like banking, insurance, online shops.

Sources of data telecom providers may have and use:

Internal data:
- Contract data - Traffic data - Contact centers data (customer complaints, contact center interactions logs and stats, etc) - Billing data

External data:
- Market research - Secondary data (geographic information, demographics) - Partnerships (data merges with potential business partners)

Segmenting residential:
Telecom providers have two types of customers: business and residential (also known as consumers).There are several approaches a provider may use to segment its customer base. They may all work fine in different business environment. But when dealing with residential, the telecom provider is interested in the individual, in the person using the service and paying from his/her own wallet; or from moms or dads, but not from a company budget.

A basic Principle: Same provider may have two or more segmentation platforms at the same time (often one is considered more strategic and the other one more operational/tactical).

Segmentation platforms

Demographic segmentation Age Gender may work Occupation as well Geographic segmentation: from a basic urban/rural split, to more detailed regional divisions, geographical perspective on the market brings value in many areas. Some markets are strongly discriminated by population layout in the territory. Research segmentations Behavioral segmentations

Segmentation may start from simple layers of usage to complex grouping of customers based on multiple dimensional analyses (i.e. product portfolio adoption and usage, social network analyses).

Technology portfolio for CSPs

Based on the above theory technology portfolio is drawn for the Reliable Industries Limited, for the available technology in CSP domain. (Communication Service Providers viz ISP/Telephony/Enterprise Solutions).

Technology portfolio of the Reliable Industries Limited (All set to launch 4G service by this Year end )

Technology

Bet 4G/BWA

Draw 3G/GSM/WIMAX

Low

High

CDMA High

Wired Telephony Low

Company`s Strength

Basis of Market Segmentation

Based on the internal and external Data available with Data mining
.

Enterprise Geographical (UrbanVoice /DATA /BOTH Industry Requirement (quality /quantity) Data/VOICE / Usage High /low Payment option Bulk Payment /Individual Bulk Payment /Individual BW requirement Age

Retail Geographical ( Roaming /Non roaming requirement Gender Income Usage Requirement

FMCG

Low/Medium/High

15Aug

M/F

Very Low Data L/M/H Voice L/M/H Data L/M/H Voice L/M/H Data L/M/H Voice L/M/H Data L/M/H Voice L/M/H

Just Incoming Free Social Pack, Unlimited Voice /FREE CALL /Roaming Free Free Social Pack, Unlimited Voice /FREE CALL /Roaming Free Free Social Pack, Unlimited Voice /FREE CALL /Roaming Free Free Social Pack, Unlimited Voice /FREE CALL /Roaming Free

Banking

Data/VOICE /

High /low

L/M/H

1522

M/F

L/M

Infra

Data/VOICE /

High /low

Bulk Payment /Individual

L/M/H

2235

M/F

M/H

Automobile

Data/VOICE /

High /low

Bulk Payment /Individual

L/M/H

3550

M/F

M/H

Health Care

Data/VOICE /

High /low

Bulk Payment /Individual

L/M/H

50++

M/F

L/M.H

Conclusion :
1. Before Launching the Service in the market, Company will measure the depth and strength it has in the Technology it has adopted to roll out the network in the market (Here Technology adopted is 4G and Company is high on strength and high on Importance). 2. So Now the company will classify the Market and Since in 4G speed Beyond 40 Mbps is expected , so company`s target Market will always be those who wants high speed irrespective of cost

. Enterprise /Retail as the case may be.

3. Voice telephony does not require this amount of speed to communicate; they will not be primary Market after segmentation is done.