Professional Documents
Culture Documents
Executive summary
Introduction
Literature Review
Statement of problem
Objective of study
This study is oriented towards the comparative of study HUTCH & its
competitor. Today, telecom sector has become a very essential aspect of each
industry. Every organization strives hard to retain its customers at any cost,
behavior of the its customers and meet their expectations and preferences.
The study focuses on the Pre Paid Service, which is been offered by the
company.
to find out the customer satisfaction of HUTCH users and also the
perception of other mobile service users towards HUTCH. The research has
city and has been focused on Hutch Subscribers. The sampling technique
used was simple random sampling of HUTCH users. The data was collected
with help of table and charts. The analysis also helps us to know more about
the company and influence of the social circle had a huge impact over the
subscribers. Most of them opted for HUTCH because it was cost effective.
The extensive promotion of HUTCH has a huge impact over the subscribers.
subscribers recharged well in advance the validity. The service was utilized
more during the day. Most of them prefer HUTCH when compared to its
competitors is the tariff aspect. They felt that the tariff HUTCH is providing
is really economical.
followed by the company profile. The study also highlights the McKinney 7
discussed.
The SWOT analysis helps us to know more about the company’s Strengths,
Weakness, Opportunities, and Threats. The SWOT also helps in identifying the
challenges faced by the company in this competitive world. Lastly, the suggestions
have been extracted from the analysis and the interpretations. Keeping the above
and the companies should try to satisfy their customers. Satisfied customers
usually return and buy more, they tell other people about their experiences,
and they may well pay a premium for the privilege of doing business with a
supplier they trust. Statistics are bandied around that suggest that the cost of
keeping a customer is only one tenth of winning a new one. Therefore, when
loyalty research has become an essential business tool to help retain and
increase the customer base. The main principal of any successful customer
plunge into in the mobile service business. Now buying mobile is not a rich
man’s possession any more. The mobile industry is on whopping high. With
various technologies creeping in every day you always are on a back seat to
keep your self updated. With a major chunk of the users being teenagers it
makes the situation more dynamic and helps to create a niche market in
then it is for sure that the subscriber base of the mobile users will definitely
between them to capture the market share is immense. The strategies and
promotions they practice are awesome. At the end of all these strategies and
research to know the factors that influence the customer satisfaction in the
strategy. This study deals with exploring the factors that effect the
satisfaction level of mobile service customers other than HUTCH who can
be the prospective customers for HUTCH in future. The research has also
It has been a sincere effort to explore the factors that can lead to total
customer expectation of the HUTCH service users. Also the study of the
customer perception & attitude of other mobile service users has resulted to
highlight those issues that the customers give value to and regard important
as, which will help the company to attract more and mare new prospective
customers.
Core competency
A core competency is something that a firm can do well and that meets the
following three conditions specified by Hamel and Prahalad (1990):
It provides customer benefits
business theories suggest that most activities that are not part of a company's
determine who your customers are and what benefits they expect
rank the key success factors by giving each one a weighting - The sum of all
rate each competitor on each of the key success factors - this can best be
displayed on a two dimensional matrix - competitors along the top and key
COMPETITOR PROFILING
Background
Products
products offered, depth and breadth of product line, and product portfolio
balance
new products developed, new product success rate, and R&D strengths
reverse engineering
Marketing
segments served, market shares, customer base, growth rate, and customer
loyalty
Facilities
plant capacity, capacity utilization rate, age of plant, plant efficiency, capital
investment
Personnel
NEW COMPETITORS
are:
Companies already targeting your prime market segment but with unrelated
products
existing companies
is feasible
This revision note outlines the main role of, and steps in, competitor analysis
Some businesses think it is best to get on with their own plans and ignore the
happy simply to track the competition, copying their moves and reacting to
changes.
planning:
• To help forecast the returns that may be made from future investments (e.g.
comparative advantage requires at least two goods and at least two places
where each good could be produced with scarce resources in each place.
COMPARATIVE ADVANTAGE
beneficial for two parties (countries, regions, individuals and so on) to trade
if one has a lower relative cost of producing some good. What matters is not
how much is given up of one good to produce a unit of the other good.
trade theory.
Under absolute advantage, one country can produce more output per unit of
relative advantage (i.e., a lower opportunity cost) and importing the good in
mobile services provider the myriad factors that have a fearing or influence
organization to study the behavior of the existing and new subscribers and
Management Problem
position of hutch & also the reasons for the customer shift.
Research Problem
The research was to know market share of mobile services provider, and
Firm will be getting the updated information about the present market
position.
good word of mouth and due to this can get potential customers.
A study of this kind helps to put theoretical aspects into the project and
provider
3.To analyze the factor influencing the sales of mobile services provider
Organization Profile
Product Range
Organization Chart
Training In Jinabakul
Sampling
Research Design
Measuring Tools
Data collection method
Limitation
growth in subscriber addition. During APRIL 2005, the sector added 1.91mn
1.95mn. In March 2005 the sector had added 1.61mn subscribers. Subscriber
subscribers were added in the mobile segment. GSM mobile alone added
1.41m new subscribers. Rest addition was in the CDMA (0.26mn) segment.
Meanwhile fixed line segment continued to move at a snail pace and added
subscriber addition that included increased drive from the telecom services
infrastructure and growing need for communication. Above all, the growing
competition amongst the service providers has led to decline in tariff rate,
Just when it seemed that tariff of mobile services had bottomed out;
Bharti under brand name ‘Airtel’ and Reliance announced rate cuts up to
60% offering local call at Rs1-0.99/min on there own network. Tata Indicom
and BPL announced 1-sec pulse rate billing to attract customers. BPL under
pre-paid plan offers 46% talk time at Rs0.03/sec pulse rate on and Tata
over years from time the first basic phone to a mobile technology and now to
EDGE Technology.
subscribers and the rest 15% were CDMA subscribers. Reliance continues to
maintain its top position with 21.6% market share. Reliance subscriber base
20.4%, while BSNL increased its market share to 16.9% to remain at third
place.
GSM MOBILE
2004. BSNL recorded higher growth rate and its subscriber base grew 10.1%
major growth drivers for BSNL. Bharti subscriber base grew by 3.6% mom
to 8.2 million, though company maintained its top position its market share
CIRCLE GROWTH
circle due to its low base. In ‘C’ circle Reliance and BSNL are the major
Circle ‘A’ accounts for highest share of 37% and grew 5.1% mom. Growth
in ‘A’ circle is lead by Karnataka and Tamil Nadu circle, which grew 7.9%
its leadership position with 91% market share. Net addition among private
players was almost through Reliance, which had 98.7% market share. Tata
outstanding bills.
Fixed line
In the month 0.2mn subscribers were added in the fixed line segment
and total subscriber base stood at 41.12mn. Growth in Fixed line segment is
HUTCHISON TELECOM
BHARTI
Bharti was the first mobile operator operational in India. India’s first GSM
IDEA CELLULAR
CDMA Operators
RELIANCE
TATA INDICOM
OUTLOOK
and does not have economies of scale would loose out in this race. Smaller
players might find difficult to be in the business and may merge with big
one of the largest companies listed on the Hong Kong stock exchange. The
Asia.
Ports and Related Services: World leading port investor, developer and
operator with interests in over 31 ports throughout Asia, Africa, Europe and
the Americas.
countries worldwide.
PARK-n-SHOP with more than 800 stores in the region. With the acquisition
world’s largest health and beauty retail outlets in Asia and six European
countries.
Hutchison Telecommunications
fixed line services, Internet services, fiber optics, mobile telephony (voice
and data), trucked mobile radio and radio broadcasting. But its main interest
the cellular license for Mumbai. It launched cellular service in the city of
year 1995. It became synonymous with being the first ‘service brand’ in
shareholder value over a long term. One of its key success stories was
venture with Max India Limited. In 1995, Hutchison Max Telecom became
in India with presence in all the major regions - Orange in Mumbai and
Tamil Nadu.
largest cellular service provider in India - covering over 23% of the national
footprint and 50% of national purchasing power, with a subscriber base that
exceeds 4 million.
eight important telecom circles across the country. It covers Mumbai under
the brand name Orange, and covers Delhi, Rajasthan, Haryana, UP [E],
Recently (in 2006) Orange was renamed as Hutch, using a pink background
transition, Mumbai was overrun with billboards that simply said "Bye". A
the Hutch tristar in a new, vivid pink. At the time, Mr. Naveen Chopra,
corporate vice president, group marketing, Hutchison Essar, said, "The idea
is just to refresh the brand, and inculcate a new 'Hutch spirit'." But the brand
makeover had less to do with creating excitement and more with renouncing
the Orange brand to Orange Telecom and creating the new pan-Indian Hutch
Acquisition
Hutch (in mid 2006) bought BPL mobile (a smaller Indian rival), in a deal
valued at $1.15 billion. After the acquisition, Hutch has close to a 53% stake
(which includes direct and indirect holdings), while Essar has over 30%. The
remaining stakes are held by Kotak group (8%) and Hindujas and Max
(together 8%).
AWARDS
World.
won the 'Campaign of the Year' award at the annual Abby 2004
two persons who developed this model, Tom Peters and Robert Waterman,
have been consultants at McKinsey & Co at that time. They published their
7-S Model in their article “Structure Is Not Organization” (1980) and in their
Excellence” (1982).
STRATEGY
market first.
Matched competitors’ prices, but never positioned the brand on the price
plank.
Focused on getting a larger share of higher paying user through value added
services.
margin.
IMPACT
Despite having a smaller footprint, its top line is just 14% off the industry
leader Bharti’s.
Its tariffs are not the lowest in the market, but low enough.
Has consistently netted the highest average revenues per user in industry.
Gross profit has increased ten times to $90 million in the 6 months to June
30, 2004.
SLIDESHOW TRANSCRIPT
Slide 2: Project Introduction “…Telecoms are rolling out like never before.
And that 100-million mark doesn't look too far away. The mobile subscriber
$24 billion by the end of 2006. • Airtel (22 per cent market share, over 15
single quarter.
subscribers (15 per cent market share) may be No. 4 (behind Reliance and
BSNL) at present, but it has the highest average revenue per user.
the following concepts: Delivery time Turn around time Lead-time Time to
Approach Each process has been designed by first planning the desired
result. The targeted results are then arrived at through identification of the
purpose of the process and key result areas. Past experience of "What went
trivialized the price in the mind of the consumer. It was pitched not merely
as a mobile service, but as something that gave him a badge value,“ – recalls
Tele-Ventures.
Slide 9: AirTel Marketing Strategy Cont’d… • in 1999, the rules of the game
changed. The New Telecom Policy came into effect, replacing licence fees
20 years. • Now, cellular service operators could drop their prices and target
music composer A R Rahman and changed its tune to "Live every moment":
Rahman's signature tune for Airtel is, perhaps, the most downloaded ring
tone in India. But that was just part of the ongoing communication.
Slide 11: AirTel Brand Review • AirTel has the most recognizable brand in
the Indian operator space, with 30.8% of our respondents able to identify it
AirTel has a much stronger brand than its competitors do. Source: IE Market
AirTel with “cool”, 26% with “creative”, and 22% with “technically
Between 2004 and 2005, it has increased its market share from 20.5% to
21.5% of the market. Source: IE Market Research Corp. – 30th Oct 2006 -
Slide 17: Hutch Marketing Strategy “…A big success factor was how
aspirational overtones in brand imagery stayed, even though price wars had
started. Again, the colour orange was a seminal attribute; the brand's slogan
Slide 18: Hutch Marketing Strategy Cont’d… “…The new brand name also
heralded the arrival of a new mascot, the "Hutch" pug. When Hutch
launched the Abby-winning "Wherever you go our network will follow'" ad,
viewers believed that was Hutch's new slogan, but it was just one brand
attribute …”
value recharge cards (starting at Rs 10), which will also help mobilize small
spenders.
Slide 24: Marketing Research Analysis which card is used. HUTCH 21%
customer care 4% 4% yes, I m satisfied. No, not satisfied. Can’t say 92%
Service Provider 0% yes, I m satisfied. 39% no, not satisfied. 61% can't say
Slide 28: Marketing Research Analysis Cont’d… Billing System 21% yes, I
Slide 29: Marketing Research Analysis Cont’d… Card do you prefer 48%
Slide 30: Marketing Research Analysis Cont’d… Cost satisfaction 10% yes,
difference score for each item Q, representing perceived service quality was
seem satisfied with the 'ability to make and receive calls in any part of the
city', however, the service providers have fallen short in meeting customers
lifts.
Slide 35: Research Findings Cont’d… • The corporate image of the service
Slide 36: Research Findings Cont’d… • The study also revealed that 'Error
free' and 'accurate' bills, being promptly delivered is something that the
customers seem to be taking for granted and have little impact on retention.
customers seemed very peeved with the amounts they had to pay for local
Slide 38: Research Findings Negative Outcomes the cellular industry has
helpline'. These include 'time taken before someone attends to you', their
• 'Knowledge of customer care personnel about tariff plans and schemes' and
schemes and so on, but there are differences in approach. Overall, AirTel is
would not be right to conclusively say that Brand A is stronger than Brand B.
Slide 42: •“. What matters is what the customers want." - Mittal, CEO Bharti
Teleservices
The policies and procedures, which govern the way in which the
TERRITORIAL CIRCLES
potential, where Metro circle has the highest potential and C circle has the
METROS, A, B AND C.
States.
Hence the territory manager looks after a particular zone or circle. Any
Human Resource
Planning
Department is to plan and present the plans to the top management and
organizational goals.
Operations
Communication
Finance
organizations as they say Finance is the lifeblood of the business. The basic
hence the finance department helps the organization to invest in right areas
SYSTEM
circulars.
connection he will have to fill a form, which contains his personal details
with the proof that is (passport, driving license…etc). Then the service will
and behaving - unwritten norms of behavior and thought. The style also
training procedures.
STAFF: Staff means that the company has hired able people, trained them
well and assigned them to the right jobs. Selection, training, reward and
key issues.
SKILLS: Skills refer to the fact that employees have the skills needed to
people know how to do their jobs and stay up to date with the latest
techniques.
SHARED VALUES: Shared value means that the employees share the same
guiding values. Values are things that you would strive for even if they
first essential step in defining the organization’s role in the larger community
in which it functions.
people's lives - we are creating a service that, upon demand, shows you
where you are, what you want and how you want it - and puts it in the palm
of your hand. Over time, we hope that this will become an indispensable part
efficiency should not compromise our respect for equality and our
and anywhere.
practices.
fun.
relevant.
Where solutions are not just promised in the future – but delivered in
Sample unit: One of the units into which an aggregate is divided or regarded
as divided for the purpose of sampling, each unit being regarded as individual
and indivisible when the selection is made. The definition of unit may be made
on some natural basis from example households, persons, units of product etc.
Hence, in the study the sample unit is “Respondents who are Prepaid Hutch
Subscribers”.
SOURCES OF DATA: Data, facts, figures, other relevant material of past and
present and surveying are the basis for study and analysis. Without an analysis
For the purpose of the present study, data from two sources has been
first hand data, which is used directly for the analysis purposes. Primary data
always gives the researcher a fairer picture. In the present study primary data
has been collected using questionnaires. For the purpose of collecting the
same, 100 respondents have been randomly selected. Even the response of
the respondents was taken into consideration. In this study, primary data
Secondary Data: is data, which is collected and compiled for other purposes.
Secondary data also plays a key factor in the in providing various other
of the sample must be free from human judgment. The sample design is
Personal interviews
Questionnaires
choice questions.
FIELD WORK
subscribers. Personal interaction has been carried out and the information
The time period for conducting the survey is inadequate as the sample size
Since most of the subscribers are teenagers it fails to give a general view of
Data Analysis
Findings
Recommendations
Data Analysis
Percent Percent
100
80
60
40
20
Percent
0
yes
Percent
Hutch 41 41.0 41.0 41.0
Airtel 35 35.0 35.0 76.0
Bsnl 8 8.0 8.0 84.0
Spice 6 6.0 6.0 90.0
Reliance 8 8.0 8.0 98.0
tata indicom 2 2.0 2.0 100.0
Total 100 100.0 100.0
tata indicom
reliance
spice
bsnl hutch
airtell
each 8% respondents has respectively BSNL & RIM operator connected, &
connected,
60
50
40
30
20
Percent
10
0
friend&Relative New s paper others
media HOlding&boarding
know about the operator through their friend &relatives & remaining 38% of
the respondents come to know about the operator through media, news paper,
effective service for the customer Respondents are highly influenced by their
Percent e Percent
Prepaid 93 93.0 93.0 93.0
postpaid
prepaid
pre-paid service users & 7% of the respondents are post-paid service users
services
Easy
Traiff/ documentation
Price Coverage scheem Availability Process Advertisement Experience
27 67 27 21 18 21 19
new scheme each 21% of the respondents reason for selecting is to easy
30
20
10
Percent
0
hutch airtell bsnl spice reliance tata indicom
steps
31% of the respondents want to shift Airtel operator, 27% of the respondents
want to shift RIM, 19% of the respondents want to shift BSNL, 14% of the
AIRTEL. Hence there is only a 17% difference between the respondents who
a) Hutch
Frequency Percent Valid Cumulati
Percent ve
Percent
Very high 4 4.0 4.0 4.0
High 6 6.0 6.0 10.0
Medium 67 67.0 67.0 77.0
Low 19 19.0 19.0 96.0
Very low 4 4.0 4.0 100.0
Belgaum
Total Institute
100 of Management
100.0 Studies [MBA]
100.0 55
tick the pricing strategy of a)Hutch
very low
very high
low
high
medium
Each 4% of the respondents said that pricing of hutch is very high &very
low
“Others”
low
medium
very high
high
very low
very high
low
high
medium
d) Spice
very low
low
medium
e) Rim
very low
medium
low
f) Tata indicom
very low
low
medium
60
50
40
30
20
10
Percent
0
yes no
Most of the subscribers are loyal to their brand and therefore don’t switch
their brands but we also have a small percentage of subscribers who switch
their brands.
70
60
50
40
30
20
Percent
10
0
Not atall one time tw o time three time or more
Most of the subscribers are loyal to their brand and therefore don’t switch
their brands but we also have a small percentage of subscribers who switch
their brands.
Poor Poor
0 30 27 30 3
three times
a) Hutch
poor
fair
Excellent
good
INTERPETATION
Inference: HUTCH
b) Airtel
very poor
poor
fair Excellent
good
Inference: AIR-TEL
c) BSNL
very poor
Excellent
poor
good
fair
Inference: BSNL
d) Spice
Excellent
very poor
good
poor fair
Inference: SPICE
20% of the respondents said that customer care of is Spice very low
e) Rim
very poor
Excellent
poor good
fair
excellent
12% of the respondents said that customer care of Reliance is very low
f) Tata indicom
Excellent
very poor
good
poor
fair
Inference: TATA-INDICOM
13% of the respondents said that of customer care Tata-Indicom is very low
40
30
20
10
Percent
0
hutch airtell bsnl spice reliance tata indicom
67 83 90 93 36 21
13) What do you from expect from your present mobile service providers?
90
80
70
60
50 Series2
Series1
40
30
20
10
0
More talk time good service price
network & 67%respondents referring more talk time & 83% respondents
FINDINGS
and 35% of the Respondents are using AIRTEL operator and each 8% of the
are using SPICE & remaining 2% of the Respondents are using TATA
INDICOM
62% of the Respondents said that they come to about operator trough their
friend and relative and 21% of the Respondents said that they come to about
operator trough the Media and 8% of the Respondents said that they come to
about operator trough the and 5% Respondents said that they come to about
operator trough the advertisements & 4% of the respondents said that the
respondents want to shift RIM, 19% of the respondents want to shift BSNL,
67% of the respondents said that the reason for selecting other operator is
the coverage
27% of the respondents said that the reason for selecting other operator is
the price and 24% of the respondents said that the reason for selecting other
operator is the advertisement, each 21% of the respondents said that the
reason for selecting other operator is the easy documentation & scheme \
tariffs 19% of the respondents said that the reason for selecting other
HUTCH
67% of the respondents said that pricing of hutch is medium
19% of the respondents said that pricing of hutch is low
Each 4% of the respondents said that pricing of hutch is very high &very
low
AIR-TEL
58% of the respondents said that pricing of Air-tel is high
16% of the respondents said that pricing of Air-tel is very high
BSNL
41% of the respondents said that pricing of BSNL is medium
22% of the respondents said that pricing of BSNL is very high
SPICE
RELIANCE
TATA-INDICOM
times
HUTCH
AIR-TEL
BSNL
39% of the respondents said that of customer care BSNL is very good
SPICE
20% of the respondents said that customer care of is Spice very low
12% of the respondents said that customer care of Reliance is very low
TATA-INDICOM
13% of the respondents said that of customer care Tata-Indicom is very low
& 67%respondents referring more talk time & 83% respondents referring
SWOT ANALYSIS
Strengths
Weaknesses
Threats
of the best service providers for telecommunication, it has to make use of its
Respondents suggest that the over all service is not satisfactory and not
Network has been a key factor for customer dissatisfaction; majority of the
The tariffs have to be consistent for quite some time in order to avoid the
lines) and promote them in order to make the user aware of the facility.
our choice.
Have Good plan, schemes, and packages in order to provide the customer
with a wide choice.Keep the subscriber well informed about any deductions
or any change in the plan and provide value for what the customer is paying
taken.
CONCLUSION
creeping in every day you always are on a back seat to keep your self
updated. With a major chunk of the users being teenagers it makes the
value added services to the subscribers. If the demand is rising in same pace
then it is for sure that the subscriber base of the mobile users will definitely
HUTCH & its competitor. With this report the company can capture its
opportunities.
network coverage, tariffs and then other parameters. The Subscriber also
expects the company to give in detail information of the service they are
availing.
buyer decision. The company should have exciting offers with the service
they provide. The basic necessity of a mobile for the subscribers is not well
defined.
Questionnaires
reach study “A comparative study between Hutch and and its competitors to
asses the market share at Belgaum city “ information provide by you will be
a) Yes b) No
a) Prepaid b) Postpaid
____________________________________________________________
____________________________________________________________
__________________
customers
operating
Yes b) No
Hutch
Airtel
B.S.N.L
Spice
Tata indicom
Reliance
lowest)
14.What do you from expect from your present mobile service providers?
16.NAMEADRESS
CITY
AGE PHONE NO
BIBLIOGRAPHY
PORTALS / WEBSITES
www.hutch.co.in
www.orange.co.in
www.hutchison-whampoa.com
www.businessworldindia.com
www.timesofindia.com
www.indiainfoline.com
www.aitelworld.com
www.bsnl.com
www.relianceinfocom.com
BUSINESS JOURNALS
Business World
Business Today
NEWSPAPERS
Times Of India
Business Standard