A PROJECT REPORT

ON MARKETING MANAGEMENT
OF IDEA CELLULAR LTD.
PROJECT REPORT
UNDER THE GUIDANCE OF
Mr. /Mrs.Jaideep Jejurikar
NOVEL INSTITUTES OF BUSINESS MANAGEMENT AND
RESEARCH CHINCHWAD, PUNE

SUBMITTED BY
PRADEEP J. JADHAV
ROLL NO:
BECHLOER OF BUSINESS ADMINISTRATIONBBA: 2010-2013

IN PARTIAL FULFILMENT OF REQUIREMENT OF

BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SUBMITTED BY
Mr. PRADEEP.J.JADHAV
(BATCH-2012-2013)
Under the guidance of

Mr.Shailesh Lele
(Asst. Director)

Dipali Chavan
(HOD)

Internal Examiner

Jaideep Jejurikar
(Project Guide)
External Examiner

ACKNOWLEDGEMENT

It is a proud privilege to express my profound sense of gratitude to the

following people who have helped me to complete this valuable project report.

I am highly thank to Mr.Anand T Mutha (Branch-Manager) of Idea Cellular Ltd

for providing me this wonderful opportunity to do the project in the organization
and giving me constant guidance to complete this project successfully.

I wish to take the opportunity to express my gratitude towards Mr. Shailesh Lele
(Assistant Director of Novel College of BBA & BCA) and Prof. Mr. Jaideep
Jejurikar (Internal guide) who has provided me with constant guidance and support
throughout the project.

DECLARATION

I, the undersigned Mr. Pradeep Jadhav hereby declare that the project on MARKETING
RESEARCH OF IDEA TELECOMMUNICATION SERVICES FOR IDEA, S CUSTOMMER

has been

successfully completed in Idea Cellular Ltd. undertaken during the period of date of first visit to
last visit is the result of my own efforts and the same has not been previously submitted to any
examination of the Pune University or any other University.

Mr. Pradeep Jadhav

INDEX

SR. NO

TITLE

1.

Introduction

2.

Executive Summary

3.

Company Profile

4.

Product Profile

5.

Observation & Scope of Project

6.

Literature Review

7.

Research Methodology

8.

Analysis & Findings

9.

Observation

10.

Suggestion

11.

Conclusion

12.

Limitation

13.

Bibliography

14.

Questionnaire

EXECUTIVE SUMMARY
The next few pages of this report tell about one of the innovative firms in the Indian telecom
industry. IDEA Cellular is a leading GSM mobile services operator in India with over 53 million
subscribers, under brand IDEA. IDEA Cellular is a publicly listed company, having listed on the
Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March2007. 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.
Ideas missionWe will delight our customers while meeting their individual communication needs anytime,
anywhere. Ideas mission tells us what they are and what they are doing at the present. Their
values are Integrity, commitment, passion, seamlessness and speed are in perfect. Their values
are in perfect sync with their mission because these values are of paramount importance for the
successful achievement of their mission. Ideas SWOT shows us that their parent company
(Aditya Birla), existing footprint and that obsession for innovation are their major strengths
while their concentration on a few circles, their late entry into many new circles and high debtequity ratio can be cited as their weaknesses.
Falling regulations, growing rural market and 3G services are the factors that bring new
opportunities for Idea. New entrants (ever increasing number of telecom operators in India) and
new technology (can be an opportunity as well) pose threats for Idea. External environment
analysis shows that competitive rivalry is very high, bargaining power of customers is high,
bargaining power of suppliers is low, threat from new entrants and substitutes are also high. This
clearly reveals the fact that Idea is in an extremely competitive environment. E.g. the ongoing
tariff war in the highly competitive Indian telecom market has been taking new shape with every
passing day and it has reached new heights now. Operators have been announcing new
promotional schemes including reduction in tariffs for voice call, slashing roaming charges and
many more such lucrative offers. Recently floated idea of per second call rates has further
aggravated competition among telecom players with every operator seemingly imitating others
for retaining their market share. Telecom sector is all set to see more severe competition. New
entrants, falling tariff rates, new technology and new regulations (mobile number portability) are
going to cause big changes to this sector. In such a situation the way forward for a player like
Idea, who is not the market leader, is not to initiate a price war but to concentrate on new
differentiated products and services.

COMPANY PROFILE

COMPANY PROFILE
7

ADITYA BIRLA GROUPS

IDEA CELLULER LIMITED

Idea Cellular Limited (Idea)

8

Board of Directors1. Mr. Kumar Mangalam Birla (Chairman)

2. Smt. Rajashree Birla
3.Mr. Himanshu Kapania (Managing Director)

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 has 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. The first wind of reforms in telecommunications sector began to flow in
1980s when the private sector was allowed in telecommunications equipment
manufacturing. In 1985, Department of Telecommunications (DOT) was
established. It was an exclusive provider of domestic and long-distance service that
would be its own regulator (separate from the postal system).In 1986; two wholly
government-owned companies were created

The Videsh Sanchar Nigam Limited (VSNL) for international

telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for
10

service in metropolitan areas. 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. New National Telecom Policy was adopted in 1999 and
cellular services were also launched in the same year. 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 video conferencing.
Cellular services can be further divided in to two categories: Global System for
Mobile Communications (GSM) and Code Division Multiple Access (CDMA).
The GSM sector is dominated by Airtel, Vodfone-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.

INTRODUCTION OF IDEA CELLULAR LIMITED

11

Idea Cellular is a part of the US $24 billion Aditya Birla Group and a leading
GSM mobile services operator with licenses to operate in 13 telecom service areas
in India. The company has operations in Delhi, Himachal Pradesh, Rajasthan,
Haryana, Uttar Pradesh (W) & Uttaranchal, Uttar Pradesh (E), Madhya Pradesh&
Chhattisgarh, Gujarat, Maharashtra & Goa, Andhra Pradesh and Kerala with the
planned expansion into Mumbai, Bihar &Jharkhand. Ideas footprint will cover
nearly 70 percent of Indias telephony potential. Idea Cellular had 16.13 Million
subscribers as on June30, 2007, and had a market share of 15.4 percent as on June
30, 2007 in its 11 service areas of operation.

History of Idea Cellular Limited:

Idea Cellular's history dates back to the year 1995, when it was incorporated as
Birla Communications Services The following year, the company entered into a
joint venture with Grasim Industries and the global telecom giant AT&T. The same
year, its name was changed to Birla AT&T Communications Limited. Amerger
with Tata Cellular Limited took place in 2000. In 2002, the company created the
brand Idea' and changed its name to Idea Cellular Limited. The same year it
launched operations in Delhi and crossed the one million subscriber base; in 2005,
it crossed the subscriber base of five million. In 2006, the Tata Group transferred
all its shares to the Aditya Birla Group and the group became the largest
shareholder in the company. In 2007, Idea came with an IPO and got listed on the
bourses - the same year it reached the subscriber base of 60million.

ENVIROMENTAL SCANNING

12

The marketing environment within which a company operates is dynamic. There

are two types of environment.
1. Micro environment
2. Macro environment
1. Micro environment:
The micro environment is the forces close to the company that affects its ability to
serve its customers.
2. Macro environment:
The macro environment is the larger societal forces that affects the whole macro
environment. The macro environment consist of six types of forces Demographic,
Economic, Natural, Technological, Political and Cultural forces. A companys
marketing strategy must take into account changes and trends in this environment
that can present opportunities or pose threats successful firm in one that regularly
modifies it marketing mix and strategies to adapt to these changes.

Political Factors:
Neglected area has been non-existence of any guidelines for installation of towers
in every nook and corner of the country. In our endeavor to grow, proper attention
is missing for safety associated with towers. Lots of towers in India have been
installed on roof tops of weak and unsafe buildings. During construction, hardly
anybody has planned for towers on roof tops.It are unexpected that the structure
feasibility of all buildings is undertaken before towers are installed. There are cases
where more than two or even three towers have been installed at a single location

ECONOMIC FACTORS

13

1. Income group:
Now a day, lower class people also use mobile phones. And idea sim card is
affordable by any class.
2. Price elasticity:
Demand of idea sim-card is increasing day by day so the price of idea sim card is
decreasing.
Social Factors:
Especially idea cellular provides many offers which attracts customer of all age
groups. For example, sms offers can easily attract youngsters. And people who are
using idea sim-card, can talk at very less call rate. So most of people use this
product.
Idea cellular limited has many big names and good brand image so bulk of the
people use idea sim-cards.
Good advertisement always attracts people & idea cellular limited introduces
new and attractive advertisement regularly and have celebrity as their brand
ambassador like Abhishek Bachchan, so it is a big factor.

TECHNOLOGICAL FACTORS

14

 Initially the memory of sim-card for contact saving was less, but now a days we
can get more memory in that.
now there are facilities of GPRS is also available in Idea sim-card.
Demographic Factors:
1. Gender:
This is used by both males and females.
2. Age group:
Mostly we see that mobiles are used by all age group from teenagers to older ones.
3. Population:
We know that if the populations increase, the use of cell phone will also increase.
4. Occupation:
This is used by the entire person. So occupation is not affecting on it.
5. Income:
Now a days income factor is not affecting to this. Because it is available at very
cheap price now.

MARKETING RESEARCH PROCESS

15

Step 1: Define the problem, the decision alternatives, and there search
objectives
There are many brands available in market like Airtel, Vodafone, Tata, Reliance
and Virgin. So, if any of these mobile operators give new schemes in less price
then customers easily get attract from the scheme and switch over from our brand.

16

Step 2: Develop the research Plan

The second stage of marketing research requires developing the most efficient plan
for gathering the required information. This involves decision on the data sources,
research approaches, and research in strumpets, sampling plan and contact
methods. So the research we will select questioner method i.e. we will prepare
questioner and do the research.

Sampling plan:
After deciding on the research approach and instruments, the marketing researcher
must design sampling plan. These call for 3 decisions.

1. Sampling Unit: Who should we survey?

In Idea Cellular the target consumer is the consumer of age between 16 to 60 years.

2. Sample Size: How many people should we survey?

In this step marketer decides from which area and number of sample they take for
research. For e.g. the researcher decides to take the sample of 200 respondents
from the society.

3. Sampling procedure: how should we choose the respondents?

After the researcher has decided the sample unit and sample size they should
decide how should be choose the respondents. There are two sampling procedure.

Probability sample:
It means he gives equal chance to all the respondents.

Non probability sample:

It means unequal chance to the respondent. And for the researcher non probability
sample is easy to reach to the respondents for his research process. i.e. the
researcher select the most assessable population members.

17

Step 3: Collect the information

The data collection phase of marketing research is the most expensive and the most
prostrate to error. Today is the era of computer technology and so the researcher
will use computer technologies i.e. new researcher software, internet etc. and faces
toface methods for fill up the questionnaire and gathers the information.

Step 4: Analyze the information

The next step in the process is to extract findings by analyzing the information and
developing frequency distribution. The researchers now compute averages and
measures of dispersion for the major variables and apply statistical techniques and
decision models in the hope of discovering additional findings.

Step 5: Present the findings

As the last step, the researcher presents findings relevant to the major marketing
decisions facing management. Researchers increasingly are being asked to play a
consulting role in translating data and information into recommendations. They are
also considering ways to present research findings in as understandable and
compelling a fashion as possible.

Step 6: Make the decision

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.

QUESTINNAIRES
18

1) Do you use any mobile phones?

Yes
No
2) Which companys sim-card do you prefer to use?
Idea
Airtel
Vodafone
BSNL
Reliance
Tata Docomo
Uninnor
3) From which sources did you get information about these sim-cards?
Newspapers
Television
Friends
Internet
Others
4) Are you aware of Idea sim-card?
Yes
No

5) Have you seen any advertisement of idea cellular limited?

19

Yes
No
6) Do you use Idea sim-cards?
Yes
No
7) Do you want to buy Idea sim card?
Yes
No
Cant say now
8) Which factor do you considered while buying Idea Cellular Limited?
Network
Schemes
Brand image
Call Charges
If other than please specify
9) From how long do you use Idea sim-card?
Less than a year
1 to 3 year
More than 3 years

10) Have you seen any advertisement of Idea Cellular Limited?

20

 Yes
No
11) Do you face network problem any time?
Sometime
Never
Often
12) In which area of service in idea sim-card do you want to improve?
Network
Quality
Schemes
Call Charges.
13) Do you satisfied with the service of Idea Cellular Limited?
Yes
No
14) If not than give the suggestions for improvement.

Name: .Sex: .
Age:..Qualification: .
Contact No:

FORCASTING AND ESTIMATING DEMAND

21

One main reason for undertaking marketing research is to identify market

opportunities for our product. Once the research is completed, company must
forecast size, growth and profit for market opportunities.
Potential Market:
Potential market is the set of consumers who acknowledge sufficient level of
interest in a market. So many people use mobile phones and have interest in
purchase of new sim-card for new mobile phones as well as old mobile phones for
experience anew services and schemes. So the potential market of idea cellular is
large.
Available Market:
Available market is the set of consumers who have interest, income, and access
to particular offer. The price of idea sim-cardis reasonable with lower call rates and
new schemes. So that customers attract from idea sim-card and so the available
marker of idea sim-card is large.
Qualified Available Market:
Qualified available market is the set of consumer who have interest, income,
access and qualification for the particular product. As the idea sim-card does not
require any such qualification so there is no need for the idea sim-card for this
market.
Target Market:
Target market is the set of qualified available market the company decides to
pursue. The Idea Cellular Services might decide to concentrate its marketing and
distribution effort on particular area or particular villages where the network of
idea cellular is not available. So the Idea Cellular decides to put its effort for Idea
Cellular Services in particular areas or villages. Now a day Idea Cellular has
started to give new network towersin small villages for choosing their target
market.

Penetrated Market:
22

Penetrated market is set of consumers who are buying the companys product. As
the Idea Cellular made its effort on small villages and some particular areas and in
India most of the people especially young generation wants new schemes and less
call rates and also new sms schemes and Idea Cellular provides all these facilities
in lower cost as compare to other one. So the penetrated market of the Idea
Cellular is also large.
Estimating Current Demand:
Researcher is now ready to examine some of methods for estimating current
market demand. Marketing executives want to estimate total market potential, area
market potential and total industry sales and market share.
Total Market Potential:
Total Market Potential is the maximum amount of sales that might be available to
all the firms in an industry during a given period, under a given level of industry
marketing effort and environment conditions. A common way to estimate total
market potential is as follows:Total Market Potential = Potential No. of Buyers
X
Average Quantity Purchased By a Buyer
X
Price
For e.g.: Total Market Potential = 20000 buyers X 1 sim-card X Rs. 30= Rs.
6, 00,000 Total Market Potential

Area Market Potential:

23

Companies face the problem of selecting the best territories and allocating their
marketing budget optimally among these territories. Therefore, they need to
estimate the market potential of different districts, towns, cities, states, and nations.
Two major methods of assessing area market potential are available: the market
builds up method, which is used primarily by business marketers, and the multiplefactor index method, which is used primarily by consumer marketers. The marketer
has decided to use Market-Buildup Method as this method gives accurate result.

CONSUMER BUYING BEHAVIOR FACTOR AFFECTING TO

PRODUCT

24

Consumer behavior is the study of how individuals, groups, and organization

select, buy, use and dispose of goods, services, ideas or experience to satisfy their
needs and wants. A consumers buying behavior is affected by cultural and social
factors.
Cultural Factors: Culture:
As in Idea Prepaid Sim-cards, the cultural factor is not affecting much.
Social class:
Social class includes lower class, middle class and upper class. This sometimes
affects the demand of the Idea Prepaid Sim-card, because these all categories
people mostly prefer Idea Prepaid Sim-card because of lower call rate in
reasonable charges. So it affects to the demand of the Idea Prepaid Sim-card.
Social Factors:
Social factors such as reference groups, family, and social role sand statuses affect
consumer buying behavior.
Reference group:
The reference group is that who connected or daily communicate with each other
like family, friends, neighborhood, relatives etc. So because of this reference group
they provide the information of Idea Prepaid Sim-card like services and other
facilities, by knowing some of the good features and services by reference group of
this product person can easily influenced by them and so that the demand of the
product also increase.

Family:

25

The family is the most important consumer buying organization in society, and
family members constitute the most influential primary reference group. In family
if some one using the service of Idea Prepaid Sim-card than the other members is
influenced by the family members and also use the service of Idea Prepaid Simcard.
Status:
One of the advertisement campaigns is
An Idea Can Chang Your Life
. From this campaign many high level people and also politicians using Idea
Prepaid Sim-card because of adding value in their status. So status also affect in
increasing in demand.
Personal Factors: Age and stage in the life cycle:
This affects much when students in their schooling they dont want much
services and schemes in prepaid sim-cards, but after passing their schooling they
entered in college and so that at that time they wants more services and schemes in
reasonable price for connecting with friends and relatives or increase their
contacts. So this factor is much affects on demand of Idea Prepaid Sim-card.
Occupation and economic circumstances:
This also affects the demand because in any occupation company have a more
contacts with customers, suppliers etc. so that they wants to connected with their
suppliers and customers and so that they want less call rate in reasonable price.So
occupation and economic circumstances are also affects the demand of the Idea
Prepaid Sim-card.

Personality and self concept:

26

This has also affect on the demand of the Idea Prepaid Sim-card because a person
has its own view point of selecting the product and if does not like the Idea Prepaid
Service he may switch over to the other prepaid sim-card.
Lifestyle and values:
It also affects the demand of the Idea Prepaid Sim-cards because persons lifestyle
and its value play a great role in choosing any product.

IDENTIFY MARKET SEGMENT OF THE PRODUCT

27

We can segment any product into Geographic, Demographic, Psychographic

and Behavioral. So the market segment of Idea Prepaid Sim-card is as below.
Geographic: Region:
Idea GSM services are licensed in 13 circles of India, so that these services are
used by people in different circles and also used by different region people.
City:
Idea Prepaid Sim-card is used in metro city, mega city and also in small villages
because of reasonable prices and also offered many schemes for people in less
monthly rental.
Demographic: Age:
Idea Prepaid Sim-card is used by age group of 15 to 55years. Now-a-days this
prepaid service is also used by below this age group
Family size:
We can also segment our product based on family size because if the family size is
large and if they are using more mobile phones in family for connected with each
other then they also using prepaid services.
Income:
Income is not much affects in segmenting the market because price of Idea Prepaid
is reasonable and the lower class people also afford it.
Occupation:
Occupation also affect in segmenting the market because Idea Prepaid sim-card is
only not used by lower class and middle class people but also used by higher class
people who have their own business.

Education:
28

Education does not affect the segment of the Idea Prepaid Sim-card because Idea
Prepaid Sim-card has been used by educated people as well as uneducated people.
Psychographic:-Lifestyle:
Lifestyle also affects in segmenting the market. So the marketer while segmenting
the market of Idea Prepaid should keep this in his mind, because high class people
also using this service.
Personality:
Personality does not affect the Idea Prepaid Service in segmenting his market.
Behaviour:
Behavior does not affect in segmenting the market.

SELECTED BRAND ELEMENT FOR PRODUCT

29

There are six main criteria for choosing brand elements. The first threeMemorable, Meaningful, and likeable are brand building. The latter three are
Transferable, Adaptable, and Protectable are defensive.
Memorable:
How easily is the brand element recalled and recognized?
Idea Cellular is having a reputed telecommunication Service and having a good
logo. Idea Cellular Service has a good punch line
An Idea Can Change Your Life and For the People, By the People
Which is very easy in recall it.
Meaningful:
Is the brand element credible and suggestive of the corresponding category?
Idea Cellular Service is having a punch line
An Idea Can Change Your Life
Means new ideas gives you new life for enjoyment and success.
Likable:
Idea Prepared sim-card liked by most of the people and most of the people wants to
use it because of good service provide by them in affordable price.
Adaptable:
Idea Cellular Service is providing two services i.e. prepaid and postpaid. So when
people can here these two services of Idea Cellular then they easily recall the name
of Idea Cellular Service.

DEVELOPMENT OF PRODUCT LIFE CYCLE

30

Introduction: In the initial stage Idea Cellular was introduced in all the major
cities of India. There were many competitors in the tele-communication business,
which provided the line-based Connection and wireless connection whereas Idea
Cellular provided the wireless connections to the customers. So profits are
nonexistent because of the heavy expenses on giving schemes of service
introduction. In the case of Idea Prepaid Service as it was introduced in the year
1995 so it was the introduction stage.
Growth: In the growth stage, the Idea Cellular sales started growing. And the
profits also started rising. Idea Prepaid Service growth stage was year 2002
because by the 2002s, Idea Prepaid got the 1 million subscribers, and in 2005 it
crossed 5 million subscribers.

Maturity:
31

Idea Cellular is right now in the maturity stage, because they have got most of
the market share. There has also been an increase in competition; new companies
like Reliances, Aircel etc. also enter into the market. The Idea Cellular handmade
not only the service modification, but also extend their market. So, we can say that
Idea Cellular is today on its maturity stage of its product life cycle.

DIFFERENTIATE YOUR PRODUCT FROM COMPETITORS IN

THE MARKET

32

Differentiation is actually differentiating the market offering to create superior

customer value, once a company has chosen desired position it must take strong
strips to deliver and communicate that position to target consumers. The company
entire marketing program should support the chosen positioning strategy.
Idea Cellular has differentiation its products by doing different activities as
follows:
Price affordability
Hire famous personalities
Only company offers package for ladies
Roaming facilities in affordable charges Idea Cellular PCO
Now we can differentiate Idea Cellular from competitors in the market as below.
Brand Name:
As compared with its competitors Idea Cellular is having good brand name in the
market and they can easily attract their target customers by their name and which is
most important for differentiate brand from competitors.
Preferences:
As prepaid sim-card users uses the sim-cards as per their convenient. Most of the
people want more schemes and less call rates in reasonable prices. So that
customer cans choose services as per their choice and preference.
Promotion:
Idea cellular Ltd. is using promotion strategy for increase the sales and demand of
the product. They are giving schemes like free sms services, GPRS service, less
call rates etc. in reasonable monthly rental so that customer can easily attract from
this promotional schemes.

CLASSIFY THE PRODUCT

33

Marketers have traditionally classified products on the basis of durability,

tangibility and use (consumer or industrial). Each product type has appropriate
marketing-mix strategy.
Durable and tangibility: Durability:
Idea Prepaid Sim-card is durable goods because it is not purchased by the buyers
on regular basis.
Services:
Services are intangible, inspirable, variable and perishable products. As a result
they normally required more quality control, supplier credibility and adaptability.
As in Idea Prepaid Service they provides VAS (Value Added Service), Roaming
facilities etc.

Consumer Goods Classification:

We classify the vast array of goods consumers buy on the basis of shopping habits.
We distinguish among convenience, shopping, specialty and unsought goods.
Convenience goods:
In convenience goods the Idea Prepaid Sim-card is impulse goods because it is
purchased without any planning and such efforts.

LONG TERM PRICING STRATEGY

34

a) At what stage in the life cycle is the product?

Idea Cellular is right now in the maturity stage, because there has also been an
increase in competition; new companies like Reliance GSM, Aircel etc. also enter
into the market.
b) What is its current price?
The current price of Idea Prepaid Sim-card is Rs. 30. In this price they gave Rs. 10
talk time and life time validity because of more competition in market.
c) What price do its competitors charge?
The competitors of Idea Prepaid are also giving this all facilities in same price of
Rs. 30. Competitor like Vodafone is giving free prepaid sim-cards with Rs. 10 talk
time and lifetime validity for increasing in users of their services.
d) What prices will you charge in the remaining stages of the product life
cycle?
Right now Idea Cellular is in the stage of maturity, but if this fall into decline stage
than I have also reduce the price as per the competitors price and give more
schemes. Because of this price I will increase my sales and users of our product.
e) What objectives will be accomplished this way? How?
To increase the market share
To achieve high return on capital
To increase awareness of the product in market
To fight with competitors

MARKETING CHANNEL
The marketing channel of Idea Cellular is as below.

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In this channel first manufacture produce the sim-cards and then they sent to the
wholesaler as per the order. Wholesalers send to the retailers and shopkeepers and
then lastly retailer sales to customer.
PULL Strategy is develop by the Idea Cellular. As Idea Cellular is very known
brand and is punch line is
For the People, By the People and An Idea Can Change Your Life
Which is verygood thats why Penetrated Market consumer know about thatand
they ask about Idea Prepaid Simcards?

DISTRIBUTION STRATEGY

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There are three types of distribution strategies.

1. Exclusive distribution
2. Selective distribution
3. Intensive distribution
Exclusive Distribution:
Exclusive distribution means severely limiting the number of intermediaries. It is
appropriate when the producer wants to maintain control over the service level
&outputs offered by the resellers & it often includes exclusive dealings
arrangement by granting exclusive distribution, the producer hope to obtain more
dedicated & knowledgeable.
Selective Distribution:
Selective distribution relies on more than few but less than all of the intermediaries
willing to carry a particular product. It makes sense for established companies
seeking distributors.
Intensive Distribution:
In intensive distribution the manufacturer places the goods or services in as many
outlets as possible. This strategy is used for items such as snack foods, soft drinks,
newspapers, candies etc.
Distribution Strategy for Idea Cellular:
We will use selective distribution. It involves the use of less intermediaries who are
willing to carry the particular product. It can gain adequate market coverage with
more control and less cost.

Advertisement of Idea Cellular Ltd.

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MARKET SHARE
38

Share
Idea
Vodafone
Airtel
BSNL
Aircel
Reliance
Uninnor

LIMITATION OF THE STUDY

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This study is done in the few areas of thats why it will not give the clear picture
of the thinking of mobile subscribers about the company and its products.

Limited database and short time span for the project.

Lack of professional approach since researchers are student.

FINDINGS AND SUGGESTIONS

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People are known to the IDEA CELLULAR LTD. and its services but still
37% of the people use Idea 32% use Airtel 19% use Vodafone, around 10%
Reliance use and7% use Uninnor.
People are aware with the services i.e. marketing communication is good.
90% of the people, even after being aware of the brand, have never used
idea cellular services.
Subscriber is not very much satisfied with the service. So, there is a need to
improve the coverage in terms of area as well as network.
Most of the subscriber suggested that the advertisement was good enough to
communicate the message but what matters at the end is the service provided by
idea. So, there is a need to improve the coverage and connectivity of Idea. And
other suggestion which was given by the subscribers was that they liked Abhishek
Bacchan more as the Brand Ambassador for IDEA.

SWOT ANALYSIS
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RECOMMENDATIONS

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Should enhance its distribution system.

Should increase its coverage area.

Should become more customer-friendly.

Should plan to grow its market share.

CONCLUSION

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Communication strategy of idea is very good because most of the people are
well known to the service by idea .Being new to telecom industry, people are not
confident to go for it. Also, competitors of idea are very much powerful in
communicating as well as providing the service.
And one thing which is focused is that the Brand Ambassador also plays an
impotent role in catching the attention of the customer because most of the people
reported that they liked Abhishek Bacchan more than Sariya Saran

BIBLIOGRAPHY

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Books: Marketing Management by Phillip Kotler

Marketing Management by Rajan Saxena
Marketing Research by C. R. Kotthari
Marketing Research by Tull and Hawkins
Marketing Management by Bilap Bose

Websites: www.ideacellular.com
www.google.co.in

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