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Assessment Of Distribution Network For IDEA In Ahmedabad

A Grand Project Report Submitted in Partial Fulfillment of the award of Master Of Business Administration Degree

Assessment of Distribution Network for Idea in Ahmedabad

Index

Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12

Particulars Executive Summary Introduction Industry Profile Company Profile Research Design Limitation & Scope of Research Data Analysis & Interpretation Findings Recommendation Appendices Bibliography Glossary

Page No. 6 7 8 16 20 22 23 50 51 53 59 60

Assessment of Distribution Network for Idea in Ahmedabad

Executive Summary
The project provided by Idea Cellular Limited was the Assessment of distribution network for IDEA in Ahmedabad, in addition to that we analyze the position of idea with respect to the other companies available in the market. The questionnaire of the project is such that, the final outcomes are in terms of Measurement of retails, Capturing the retail purchase, Distribution efficiency in different areas, Measurement of market share of idea with respect to other players in the market, Distribution reach and Target audience. All aspects are analyzed with respect to the other players in the market. The objective of this project was to assess market share, to analyze effectiveness of ideas representative, to study and analyze the reach of Ideas distribution network vis--vis other competitor. The knowledge of all aspects and trends of market is most important for the success of any company and for this purpose market survey of retailers is the best instrument. From retailers we can get the more quality information about market trend, about customers demand and the most important the opinion about company & its products. In this case we have done the personal conversation with retailers. From this project, the company will get the knowledge of the weaknesses of the distribution network as well as the market position, which helps them to construct the new strategies.

Assessment of Distribution Network for Idea in Ahmedabad

INTRODUCTION
The topic of the project is the Assessment of distribution network of Idea in Ahmedabad. In such project actually we try to analyze the strength of the idea cellular with other competitors in the market. The objective of this project was to assess market share, to analyze effectiveness of ideas representative, to study and analyze the reach of Ideas distribution network vis--vis other competitor. For such the survey of 500 retailers had been made and with filling up of the questionnaires, try to analyze the distribution effectiveness and the distribution reach and its depth in the Ahmedabad. With the use of different types of the charts and the statistical tool, we try to analyze the facts of the Ahmedabad for all companies. An assessment of the Distribution Network of ideas services will help the company in knowing the strength and weaknesses of the distribution network in Ahmedabad vis--vis competitor. After the project, we are able to give suggestions to the company on the basis of field survey and its result.

Assessment of Distribution Network for Idea in Ahmedabad

INDUSTRY PROFILE
Telecommunications is the one of the fastest growing service industries of the word. While the accent of growth on the value added services, such as email, cellular phones etc in the developed countries, the thrust is on improving basic role in spurring growth, especially industrial and services, in any economy. The last two decades has witnessed a restructuring of the entire sector across the globs, in terms of privatization and competition. Opening up of economies and privatization in the developing countries has triggered an influx of foreign capital and technology into the telecom sector.

HISTORY OF WIRELESS
The cell phone is one of the most significant technological advances of the 20th century; however, the neat little gadget is not the first to communicate without wire. Smoke signals and tribal drums were used to communicate over short distances without wires. Later, although there was a form of mobile telephone service available in the late 1940s, its capacity was limited to 12 simultaneous callers.

WORKING OF WIRELESS
Cell phones use low- energy FM radio waves to transmit voice to the nearest antenna site connected with the local phone network. The call goes through either a regular phone line, or by radio signal to another cell phone, depending on the service. Wireless technology uses individual radio frequencies over & over by dividing service areas into different geographic zones called cells. Each has its own radio transmitter and receiver antenna linked to Mobile Telephone Switching Offices (MTSOs). As the caller moves from one place to the next, the call is handed off by the MTSO to the next cell site, providing a consistent, high quality signal. When a subscriber travels of a service area, roaming on the systems of other wireless carriers can still make calls. These carriers take up the call signal and allow calls to be made or received within their coverage area.

DEFINING CELLULER SERVICES:


Cellular Service is a service, which enables two-way, mobile, wireless communication via a portable handset. Area covered by the service provider is divided into cells, each with a Radio Base Station (RBS) connected to a Central Switching Center (CSC) which monitors the entire system. In the midst of a call, if a subscriber moves across cells, CSC ensures handing over of the call between the adjacent RBS and the call is uninterrupted. 5

Assessment of Distribution Network for Idea in Ahmedabad

Cellular Technology: the technology that gives a person the power to communicate anytime, anywhere has spawned an entire industry in mobile growth, success and efficiency of any business/ economy. The most prevalent wireless technology in the world today, is GSM. The GSM association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communication. The Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European Standard, the Group Special Mobile as it was then called, soon came to represent Global System for mobile communications as it achieved the status of a worldwide standard. The GSM membership has grown exponentially since 1992.

Assessment of Distribution Network for Idea in Ahmedabad

Overview The Indian Telecommunication Industry- Past, Present & The Future

Assessment of Distribution Network for Idea in Ahmedabad

The journey so far 1994 was a watershed year in the history of the Indian telecom sector, which ranked sixth in the world after USA, China, Japan, Germany, and France in terms of number of installed fixed lines. The government of India introduced the New Telecom Policy (NPT) that year that envisaged a vast change in Indian Telecom Scenario and reflected the Governments desire to bring the Indian telecom at par with the rest of the world. It was followed up by the introduction of NTP 1999. The various policy changes also reflected the Governments realization that the huge funds needed to undertake gigantic and extensive upgrade of telecom infrastructure in all the three segments of wire line, wireless and data services, would require active participation of private sector. As soon as the telecom industry opened to private sector investment beginning 1994, a large number of Indian companies entered the segment with varying force, different strategies, and assorted aspirations. There were ten key strategic dimensions along which these new entrants positioned themselves in this sector. How we stand Today

The Indian telecommunication network with 69 million telephone connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for UK companies in the stagnant global scenario. With tele-density approaching 6.9 per hundred, the target to achieve 15 per hundred by 2010 looks well within reach. India's total mobile subscriber base (both cellular and wireless in local loop-mobile) has reached 27 million. About 85% of the villages have village public telephones (VPTs)- 5,16,887 VPTs exist in India. The remaining 15% that includes 88,970 villages are yet to be covered. Accordingly, India's 10th Five- year plan 2002-07 projects 25 billion worth of

Assessment of Distribution Network for Idea in Ahmedabad investments in 50 million fixed lines, 30 million cellular lines and 20 million Internet connections.

The factors behind the wireless revolution in India are no different from those prevailing globally and can be listed as follows: 1. Industry deregulation & liberalization has ushered in increased competition & led to growth The Indian telecom industry has come of ages in the field of regulations. It started with the NTP in 1994. Between the years 1994 & 1998 TRAI was established as an independent regulatory body, the wireless licenses were allotted to private operators and the wire line services were opened up to competition. Between 1999 & 2002 new telecom policy was introduced and there was entry of third & fourth operators in the wireless services. Free competition was allowed in wire line and first round of tariff rebalancing was done. The operators moved from fixed to revenuesharing license fee structure. Then in the year 2003-2004 the unified license regime was introduced to enhance the competition and create a level playing field. Transfer of wireless licenses was allowed among the operators and intra-circle wireless mergers were also allowed. 2. Declining tariffs have made wireless & Handset prices extremely affordable The intense competition has been instrumental in driving down the wireless tariffs. Entry of 3rd and 4th GSM operators in each circle, and CDMA wireless operators, has created a new floor for local & long distance tariffs. The average peak wireless call tariff per minute has come down from Rs. 16.8 in 1998 to Rs. 6 in 1999 to Rs. 4 in 2002 and Rs. 1.5 at present. There has also been a crash in the handset prices by more than 70% over the last 4-5 years, and the operators have coupled it with easy financing schemes and bundling of handsets with connections. With the government reducing the custom duties on the handsets, handset prices are expected to come down even further, leading to higher new demand and replacement demand.

Assessment of Distribution Network for Idea in Ahmedabad

3. Prepaid offerings have driven mass penetration of wireless Prepaid offerings have created a surge in wireless subscribers, mirroring the trend in other developing countries. The operators are aggressively promoting prepaid cards and have spurred the adoption of wireless by the masses. From the budget-conscious lower middle class households to college students to low income groups, people are increasingly seeing prepaid as a hassle-free way of going wireless. The prepaid share has increased from 26% in 1999 to 60% in 2002. However, in 2003 prepaid did not increase its share of the total subscriber base, despite the addition of 17 million new subscribers because all the 6 million new subscribers added by CDMA wireless were postpaid subscribers. With the introduction of the CDMA prepaid in 2004 the prepaid share will increase to over 75% in coming years. 4. Implementation of CPP regime has given the subscriber greater control over costs The implementation of CPP regime was a water-shed event in the industry. It has greatly increased the affordability of going wireless, as subscribers dont have to pay for incoming calls, and can control their telecom costs better. The other benefits of CPP are lower costs for wireless subscribers, higher wireless usage, and higher penetration of wireless.

Road to Future The unified licensing has ended the License Raj in telecom, resolved all litigations, created a level playing field for all the operators and has paved the way for faster and sustainable growth of the telecom sector. The wireless revolution will increase its pace and the factors that have been responsible for its growth will carry it further. The wireless

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Assessment of Distribution Network for Idea in Ahmedabad data services will act as a revenue stream for the wireless operators. Some operators have already deployed 3G technologies on their networks. With further rollout of wireless broadband, backed by the provision of compelling content services, broadband revenues will comprise a key portion of the total telecom pie in the future The future market will be characterized by high penetration, competition and churn and the winners will be distinguished by how they address these challenges. Theyll have to juggle between achieving economies of scale, efficient network management, increasing operating margins & attracting and maintaining subscriber base. The future value will reside in ownership of customer relationship and provision of diversified services. This implies a trend towards bundled service offerings. For provision of bundled services, operators will need to have strategic alliances with intermediaries through whom traditional commercial transactions can be executed. Operators with the best interface strategies will succeed in maintaining the customer loyalty. The operators need to rapidly grow their subscriber base while simultaneously maintaining customer loyalty. The ability to segment customers, identify the best among them and maximize their value will determine success. Subscriber numbers are expected to more than double in the period 2001-2006, from 35 million in March 2001 to about 85 million in 2006. India will mirror the global trend of high growth rates in mobile vis--vis fixed-line users (40 per cent CAGR in mobile services against 16 per cent in the fixed-line segment). However, with fixed-line teledensity in India being at a very low 4 per cent, absolute growth in fixed-line services will lead additions in mobile subscribers over the next 10 years. Despite the high projected growth, teledensity in 2010 is expected to be 11.5 per cent, falling short of the NTP99 target of 15 per cent. Revenues will also grow, albeit slowly, in the light of significant reductions in tariffs. By 2006, telecom is expected to be a Rs 66,000-crore sector, contributing 5.4 per cent to Indias GDP.

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Assessment of Distribution Network for Idea in Ahmedabad

Subscriber Volume (in millions) Cellular Phone Fixed line phone

1997

1998

1999

2000

2001

2002

Sept '03 17.4 46.32

0.34 14.54

0.88 17.8

1.2 21.63

1.88 26.79

3.58 32.97

6.43 39.13

Teledensity Basic phone lines Telephone exchanges Cellular subscribers Basic telecom subscribers incl. WLL PCO (Public call Office) Paging subscribers Optical fiber cable (OFC) route length Television sets PCs Cable TV Connections

6.90% 43 million 38,000 20.72 million 6.9 million 1655980 0.6 million 579500 Kms 100 million 9 million 45 million

TELEPHONE NETWORKS STATUS AS OF DECEMBER 2003


The Indian telecom boom is for real. While various issues between operators and the government and between fixed and mobile operators did result in avoidable chaos and uncertainty, the sector continued to grow. The Indian economy is expected to add millions of consumers of a younger age profile, more inclined to use telecom services. The fact that India has one of the lowest telecom penetration rates among major nations also offers an unprecedented opportunity for telecom service operators, infrastructure vendors, manufacturers and associated services companies.

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Assessment of Distribution Network for Idea in Ahmedabad

COMPANY PROFILE IDEA CELLULAR LIMITED

The proud offspring of three illustrious parent (A.V Birla Group, TATA cellular and AT & T Wireless), Idea Cellular will be driven by the objective of creating a different in the lives of our customers. Idea Cellular aspires to offer the most comprehensive and innovative services, to assist people to go beyond what they thought possible. As the cellular revolution transforms India in the coming decade, Idea Cellular will be a harbinger of change. - Sanjeev Aga (President and CEO Idea Cellular Limited)

ABOUT THE COMPANY

LAUNCH OF SERVICE:

The cellular service was launched in the Gujarat circle in January 1997 and in the Maharastra circle (excluding Mumbai, including Goa) in March 1997.

THE INITIAL PROMOTERS:

It was at the time of its launch set up as a joint venture of Aditya Birla Group and the leader in Wireless Technology-AT&T. Established in 1947, the Aditya Birla Group is on of the leading business house in India. The Group has its presence across various sectors including cement, Viscose Staple fiber,

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Assessment of Distribution Network for Idea in Ahmedabad engineering, textiles, power, telecommunication, industrial chemicals, petroleum and financial services. The business is spread across 15 countries with over 100 manufacturing units in India and overseas including Thailand, Indonesia, Malaysia, Philippines, Egypt and Canada. Trading operations span across Singapore, Dubai, UK, USA, South Africa, Tanzania, Burma and Russia. All the groups units are accredited with the ISO 9002 certification and nine on them ISO 14001 certified. AT&T is the largest telecommunication company in the world offering a complete range of communication services. AT&T started its operations in 1885 and is present in over 200 countries. In the United States its parent country, AT&T Corp. is a leading distance carrier, wireless operator and provider of video data and Internet services. In the recent past, AT&T Corp. acquired Media One, one of the largest cable companies in USA, while Media one had acquired US West, a US based telecom operator. In India, US West is the joint venture partner of BPL for providing cellular services in the circles of Maharastra, Kerala and Tamilnadu. As a result of this consolidation, AT&T has direct interest in cellular services in Maharastra through Birla AT&T Communications Limited and an indirect Internet through Media one in BPL Cellular Limited. TECHNOLOGY PARTNERS:

Idea welcomes all businesses and individuals interested in partnering with it to enhance and strengthen the ideas products and services portfolios. Some of the ideas technology and content partners: Nokia, Ericsson, schlumberger sema, NDTV, indiatimes, rediff, C2W. IDENTITY:

Idea Cellular's antecedents date back to 1995, when the Aditya Birla Group and AT&T (through Birla AT&T Communications Maharastra & Gujarat circle) and the Tata Group (through Tata Cellular - Andhra Pradesh circle) set up cellular networks. Both the above company was amongst the first company to commercially start operation in circles other than metros and achieve financial closure in Indian Telecom industry. In the year 2000, the historic path-breaking merger of Tata Cellular with Birla AT&T Communications and the subsequent acquisition of RPG Cellular - (Madhya Pradesh circle) in the year 2001 - helped take the company to aim even further and led to the formation of Birla Tata AT&T Limited. In year 2001, company won fourth cellular license for Delhi metro circle and in year 2002 company introduced common brand !DEA and changed the name to IDEA Cellular Limited

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Assessment of Distribution Network for Idea in Ahmedabad Since then, there has been no looking back for IDEA Cellular. The company launches Delhi operations in year 2002 and added a record 100,000 subscriber within one month of launch. In 2003, the company achieved the largest financial closure in Indian Telecom for its entire circle. In 2004, the company entered into definitive agreement to acquire Escotel Mobile Communications (existing operator in Haryana, Kerla and UP (W)) and Escorts Telecommunications (cellular licensee holder for UP (E), Himachal Pradesh and Rajasthan)

CORE BELIEF:

"Attracting and nurturing talent has become the single most dominant force in business." Idea - the very name suggests innovation. Innovation, which comes from intelligence, talent, skills, involvement, hard work and continuous learning. The company continuously harnesses the power of wireless revolution to provide worldclass products and services. It aims at responding to customer needs proactively by anticipating requirements and providing ready solutions. Idea Cellular draws inspiration from the loyalty of its subscribers to keep raising the bar, to shape the future, and to change and enrich the life of each and every member of its ever-growing family of subscribers.

THE MEDIA:

Stay Connected is a brand promise that looks at the key purpose of the mobile telephony. It converges with the tangible requirement of network depth and at the same time, reflects the eternal human need for bonding, kinsman ship and relationship forming. This new brand campaign enables Idea to own the biggest category benefit of keeping people connected, through a simple, unique and a likable expression of connectivity. And it makes consumers aware that no one connects better than Idea. Slated to run through 2004, the campaign utilizes all relevant mainline media to propagate the message to its audiences with 60-seconds commercial and its various edits, print campaign and its outdoor publicity. Apart from it various innovative media/events has been used to further strengthen the message. For example- at local level Idea has exploited the Indo-Pak series by screening the oneday matches in popular places under the theme of stay connected.

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Assessment of Distribution Network for Idea in Ahmedabad THE PRODUCTS:

The Post-paid Card: The regular card as it is more popularly known as. The AT&T postpaid card has been rechristened as the Idea Postpaid card. The Pre-paid Card: The Idea Cellular Pre-paid card is called as IDEA CHITCHAT.

IDEA CHITCHAT IDEA Chitchat is a ready to talk cellular services. It runs on the state-of-the-art Intelligent Network, comes with world class features like all handset compatibility, therefore helping you to control your expenses too. It lets you make and receive local, national and international calls instantly.

MISSION STATEMENT: Through continuous innovation Idea promises to liberate customers from the shackles of time and space. (Innovate, Stimulate, Liberate.)

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Assessment of Distribution Network for Idea in Ahmedabad

RESEARCH DESIGN

Assessment of Distribution Network of Idea in Ahmedabad

Objectives Of Project:
To assess market share of the Idea vis--vis other competitor. To analyze effectiveness of ideas representative vis--vis other competitor. To study and analyze the reach of Ideas distribution network vis--vis other competitor. To assess the distribution depth of Idea vis--vis other competitor.

Research Methodology: Type of the study


The type of study we will use would be Descriptive study.

Sampling design
Universe of Research: The research would be conducted in Ahmedabad. So the universe for the study would be Ahmedabad.

Size of the sample: The sample would include the following: Pre paid Dealers

500

Sampling procedure: The sampling procedure would be stratified random sampling. Data sources: The data to be used for the study would be both secondary and primary data. The secondary data would be necessary to study the distribution Network. It would be obtained from Database of the company, web sites etc.

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Assessment of Distribution Network for Idea in Ahmedabad The primary data would be obtained through survey of pre-paid dealers of idea cellular, which would be conducted through personal interview & filling-up of the questionnaires. Research instrument: The research instrument would be an interview schedule with filling up the questionnaires. It would be consist of 10 questions to keep it short.

Pilot Testing:
We are conducted a pilot test of about 12 pre-paid retailers of idea cellular and according to the need the questionnaire is revised as per the response received. The changes as per under: The FOD segment is later on included The value of recharge voucher is made more segregated. Time period of visit of distribution is also made more segregated. The concept of call center efficiency measurement is included after pilot testing.

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Assessment of Distribution Network for Idea in Ahmedabad

Limitations & Scope of Research

The Research study conducted herewith is restricted to the market of Ahmedabad only.

Some limitations in terms of research resources and manpower couple with the fact that the sample size and the quality of respondents were limited due to the constraint of time, hence there would be some variance from the actual scenario. This research study would provide only a micro insight into the dynamic factors that rule the Ahmedabad telecom distribution network.

To this extent, we would like to state that the research should not be treated as conclusive and there is a further scope of improvement for research. A wider sample base and a broader geographical territory (preferably a Circle of Telecom) would be more effective in drawing a relatively more accurate research picture.

This has been a very satisfying research experience for the two of us and we would like, if possible to extend and compile a macro profile for this research topic.

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Assessment of Distribution Network for Idea in Ahmedabad

DATA ANALYSIS & INTERPRETATION


STATISTICAL METHOD USED FOR TESTING: Chi-Square Test It is termed as statistic and test is known as non-parametric test. It enables us to test the comparisons of two attributes. It allows us to test whether two attributes are independent of each other. Chi-square distribution is probability distribution. We are need of making the contingency tables as r x c where r denotes the number of rows and c denotes the columns. Area wise division For the simplicity of the analysis, we have divided the whole Ahmedabad in to main four areas. The total area of the Ahmedabad is 42, and those are base on the different pin codes of Ahmedabad. Area-1 (South-west region) (144 retailers) o Ellisbridge o Jivaraj park o Juhapura o Paldi o Polytechnic o Amraiwadi o Behrampura o Isanpur o Maninagar o Narol o Shah-alam o Vatva Area-2 (North-west region) (120 retailers) o Ranip o Gandhi Ashram o Sabarmati o Thal-tej o Bodakdev o Naran pura o Navjivan o Navarangpura o Memnagar o Ghatlodia

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Assessment of Distribution Network for Idea in Ahmedabad

Area-3 (North-east region) (116 retailers) o Airport o Cantonment o Civil o Girdharnagar o Krishnanagar o Kubernagar o Naroda o Saijpur-bogha o Sardarnagar Area-4 (Middle east region) (120 retailers) o Bapunagar o Khodiarnagar o Odhav o Kalupur o Gomtipur o Rakhial o Saraspur o Thakkar bapa nagar o Kathwada o Jantanagar

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Assessment of Distribution Network for Idea in Ahmedabad 1. Availability of the cards with FOD: Total Ahmedabad: The total no. of the retails are 500.

Cards FOD

Airtel 483 187

Bsnl 199 39

Hutch 498 193

Idea 499 295

Reliance 321 230

Tata 168 73

600 500 400 300 200 100 0


Ai rte l Bs nl ut ch Id ea R el ia nc H Ta ta e

Cards FOD

Conclusion: From the above chart, we can conclude that the availability of the idea and hutch is almost same and highest among all the competitors. In case of the FOD, the highest FOD is of the idea and then comes the reliance. In both the cases the idea has a leading position in Ahmedabad.

2. Age of the retailer (Total experience): Total Ahmedabad: The total no. of the retails are 500. More than Less then 1 year 1 to 3 years 3 to 6 years 6 to 9 years 9 years 205 254 38 3 0

Age

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Assessment of Distribution Network for Idea in Ahmedabad

Age

Less then 1 year 1 to 3 years 3 to 6 years 6 to 9 years more than 9 years

Conclusion: In general, from the above graphical representation, we can conclude that, the most of the retails belonging the range of the 1 to 3 years of the experience. It shows that the overall distribution reach and the mobile users in the city of Ahmedabad were increased in last 3 years.

3. Target audience
Total Ahmedabad: The total no. of the retails are 500. Airtel 147 Bsnl 8 Hutch 58 Idea 109 Reliance 56 Tata 0

Students

Students 200 150 100 50 0


Ai rte l ut ch a ia nc e H Ta ta Bs nl Id e

Students

Conclusion: From the above presentation, we can conclude that, in Ahmedabad the usage of the maximum cards by students are of the Airtel. The idea is on the second position in usage by students.

R el

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Assessment of Distribution Network for Idea in Ahmedabad

4 Trade Scheme
Total Ahmedabad: The total no. of the retails are 500. Airtel 482 483 Bsnl 193 199 Hutch 496 498 Idea 498 499 Reliance 320 321 Tata 167 168

Trade Scheme Total

Trade Scheme 600 500 400 300 200 100 0


Bs nl H ut ch Ai rte l Id ea R el ia nc Ta ta e

Trade Scheme

Consumer Scheme
Total Ahmedabad: The total no. of the retails are 500. Airtel Consumer Scheme 481 Total 483 Bsnl 191 199 Hutch 496 498 Idea 497 499 Reliance 320 321 Tata 167 168

Consumer Scheme 600 500 400 300 200 100 0


Ai rte l ut ch a ia nc e H Ta ta Bs nl Id e

Consumer Scheme

R el

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Assessment of Distribution Network for Idea in Ahmedabad Conclusion: From the above analysis, we can conclude that, in 98% cases, the all retailers are aware about the consumer schemes and the trade schemes. The distributors make them aware about the all the schemes available in the market.

5.source of purchasing the cards:


Total Ahmedabad: The total no. of the retails are 500.

From companys sales person Airtel 483 Bsnl 198 Hutch 498 Idea 499 Reliance 321 Tata 168

From other dealers 0 1 0 0 0 0

Conclusion: From the above data, we can say that the all of the retailers purchase the prepaid cards from the authorized companys sales person.

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Assessment of Distribution Network for Idea in Ahmedabad

6.Analysis of all companies with different attributes:


Here, the total value is calculated on the basis of the rank given to them according to their performance. (6 to 1 rank. 6 for best and 1 for worst).

Network:

Total Ahmedabad: The total no. of the retails are 500.

Total Value Average

Airtel 1829 3.658

Bsnl 1165 2.33

Hutch 2766 5.532

Idea 2344 4.688

Reliance 1537 3.074

Tata 760 1.52

Average 6 5 4 3 2 1 0
a nc e Bs nl ch el Id e Ai rt H ut ia Ta t a

Average

Conclusion: As far as network is consult, the hutch is number one. The research shows that the network is very much stronger. The ideas position is second and then comes Airtel And Reliance.

Company Scheme:

Total Ahmedabad: The total no. of the retails are 500.

R el

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Assessment of Distribution Network for Idea in Ahmedabad

Total Value Average

Airtel 2680 5.36

Bsnl 1073 2.146

Hutch 1974 3.948

Idea 2246 4.492

Reliance 1735 3.47

Tata 681 1.362

Average 6 5 4 3 2 1 0
ea ce Bs n ch el Ai rt H ia n Ta t ut Id a l

Average

Conclusion: As far as consumers scheme is consult, the Airtel is number one. The research shows that people are much satisfies with the airtels schemes. The ideas position is second and then comes Hutch And Reliance.

Trade Scheme:
Total Ahmedabad: The total no. of the retails are 500.

Total Value Average

Airtel 2481 4.962

R el

Bsnl 791 1.582

Hutch 1907 3.814

Idea 2461 4.922

Reliance 1804 3.608

Tata 952 1.904

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Assessment of Distribution Network for Idea in Ahmedabad

Average 6 5 4 3 2 1 0
ea ce Bs n ch el Ai rt H ia n Ta t ut Id a l

Average

Conclusion: As far as Trading schemes are consulting, the Airtel and Idea has acquired the same position almost. The research shows that retailers are much satisfies with the Airtel and ideas trading schemes. The ideas position is second and then comes Hutch And Reliance.

Distribution Services:

Total Ahmedabad: The total no. of the retails are 500.

Total Value Average

Airtel 2381 4.762

R el

Bsnl 678 1.356

Hutch 2080 4.16

Idea 2481 4.962

Reliance 1805 3.61

Tata 973 1.946

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Assessment of Distribution Network for Idea in Ahmedabad

Average 6 5 4 3 2 1 0
ea ce Bs n ch el Ai rt H ia n Ta t ut Id a l

Average

Conclusion: As far as distributors services consult, the Idea has acquired the first position. The research shows that retailers are much satisfies with the ideas distributors services. The Airtels position is second and then comes Hutch And Reliance.

Call Center Services: Total Ahmedabad: The total no. of the retails are 500.

Total Value Average

Airtel 2345 4.69

R el

Bsnl 1221 2.442

Hutch 2791 5.582

Idea 1838 3.676

Reliance 1455 2.91

Tata 738 1.476

Average 6 5 4 3 2 1 0
ea ce Bs n ch el Ai rt H ia n Ta t ut Id a l

Average

R el

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Assessment of Distribution Network for Idea in Ahmedabad Conclusion: As far as call center services consult, the Hutch has acquired the first position. The research shows that the hutch provides the better call center services then others. The Airtels position is second and then comes Idea And Reliance.

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Assessment of Distribution Network for Idea in Ahmedabad

7. Analysis of the no. Of cards selling by all retailer in Ahmedabad. (Chi-square testing)
H0: The monthly Shop wise sells of all companys cards in Ahmedabad are same. H1: The monthly Shop wise sells of all companys cards in Ahmedabad are not the same. 0/recharge 1 to 5 Airtel O E 6 to 25 26 to 50 Above 50 483

111 297 68 4 3 143.25 278.0369 56.81042 2.673432 2.22786

Bsnl

(O-E)*(O-E)/E 7.2604712 1.29335 2.203937 0.658249 0.267611 O 195 4 0 0 0 E 59.020756 114.5535 23.40637 1.101476 0.917897 (O-E)*(O-E)/E 313.28563 106.6932 23.40637 1.101476 0.917897 O 39 382 70 4 3 E 147.70018 286.6716 58.57472 2.756458 2.297048 (O-E)*(O-E)/E 79.998073 31.70006 2.228554 0.561009 0.21512 O 91 323 80 3 2 E 147.99677 287.2472 58.69234 2.761993 2.301661

199

Hutch

498

Idea

499

(O-E)*(O-E)/E 21.950695 4.450036 7.735528 0.02051 0.039536 Reliance O 130 154 35 1 1 E 95.204336 184.7823 37.756 1.776753 1.480627 (O-E)*(O-E)/E 12.71726 5.127922 0.201174 0.339577 0.156017 O 77 88 2 0 1 E 49.826568 96.70849 19.76015 0.929889 0.774908 (O-E)*(O-E)/E 14.819311 0.784189 15.96258 0.929889 0.065384 643 1248 255 12 10

321

Tata

168

2168

X2 cal = 657.0906 Tabulated value = 10.581


Conclusion: Since chi-square calculated value is grater than chi-square tabulated value, so we reject the null hypothesis and conclude that The monthly Shop wise sells of all companys cards in Ahmedabad are not the same.

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Assessment of Distribution Network for Idea in Ahmedabad

H0 is rejected, so here is the graphical presentation of selling by different areas.

Area-1 (South-west region)


Airtel Bsnl Hutch Idea Reliance Tata 0/recharge 56 50 14 36 51 27 1 to 5 71 0 112 90 28 21 6 to 25 11 0 17 18 16 0 26 to 50 2 0 0 0 0 0 Above 50 0 0 0 0 0 0

120 100 80 60 40 20 0

0/recharge 1 to 5 6 to 25 26 to 50 Above 50

l H ut ch

Ai rte l

Id ea R el ia nc e

Area-2 (North-west region)

Airtel Bsnl Hutch Idea Reliance Tata

0/recharge 43 40 9 39 50 36

1 to 5 61 2 91 70 17 6

Ta ta

Bs n

6 to 25 6 0 15 7 1 1

26 to 50 1 0 3 1 0 0

Above 50 2 0 2 2 1 1

32

Assessment of Distribution Network for Idea in Ahmedabad

100 80 60 40 20 0 0/recharge 1 to 5 6 to 25 26 to 50 Above 50

Bs nl H ut ch

Ai rte l

Id ea

Area-3 (North-east region)


0/recharge 1 to 5 Airtel 10 82 Bsnl 45 1 Hutch 12 85 Idea 12 78 Reliance 14 51 Tata 11 20 6 to 25 26 to 50 20 1 0 0 17 1 24 2 4 1 1 0 Above 50 1 0 1 0 0 0

90 80 70 60 50 40 30 20 10 0
Ai rte l ut ch a H ia nc e Bs nl Ta ta Id e

R el ia nc

Ta ta

0/recharge 1 to 5 6 to 25 26 to 50 Above 50

R el

33

Assessment of Distribution Network for Idea in Ahmedabad

Area-4 (Middle-east region)


0/recharge 1 to 5 Airtel 2 83 Bsnl 60 1 Hutch 4 94 Idea 4 85 Reliance 15 58 Tata 3 41 6 to 25 26 to 50 31 0 0 0 21 0 31 0 14 0 0 0 Above 50 0 0 0 0 0 0

100 80 60 40 20 0 0/recharge 1 to 5 6 to 25 26 to 50 Above 50

Bs nl H ut ch

Ai rte l

Id ea

R el ia nc

Ta ta

34

Assessment of Distribution Network for Idea in Ahmedabad

8. Analysis of retail recharge value sold. (Chi-square testing)


H0: The monthly recharge value of different players sold in Ahmedabad is same. H1: The monthly recharge value of different players sold in Ahmedabad is not same. Below 5000 Airtel O E 5001 to 10001 to 25001 to Above 10000 25000 50000 50000 1 2.22786 0.676721 0 0.917897 0.917897 1 2.297048 0.732389 1 2.301661 0.736129 0 1.480627 1.480627 0 0.774908 0.774908 10 2168 483

377 40 59 6 143.25138 278.0369 56.81042 2.673432

Bsnl

(O-E)*(O-E)/E 381.41632 203.7915 0.08439 4.13927 O 199 0 0 0 E 59.020756 114.5535 23.40637 1.101476 (O-E)*(O-E)/E 331.9881 114.5535 23.40637 1.101476 O 313 122 56 6 E 147.70018 286.6716 58.57472 2.756458 (O-E)*(O-E)/E 184.99658 94.59163 0.113175 3.816699 O 356 76 61 5 E 147.99677 287.2472 58.69234 2.761993

199

Hutch

498

Idea

499

(O-E)*(O-E)/E 292.33978 155.3553 0.090732 1.813429 Reliance O 254 49 18 0 E 95.204336 184.7823 37.756 1.776753 (O-E)*(O-E)/E 264.86255 99.77596 10.33741 1.776753 O 156 11 1 0 E 49.826568 96.70849 19.76015 0.929889 (O-E)*(O-E)/E 226.2407 75.95967 17.81075 0.929889 643 1248 255 12

321

Tata

168

X2 cal = 2496.611 Tabulated value = 10.581


Conclusion: Since chi-square calculated value is grater than chi-square tabulated value, so we reject the null hypothesis and concludes that the monthly recharge value of different players sold in Ahmedabad is not same.

35

Assessment of Distribution Network for Idea in Ahmedabad H0 is rejected, so here is the graphical presentation of selling by different areas

Area-1 (South-west region)


Below 5000 Airtel 118 Bsnl 50 Hutch 85 Idea 105 Reliance 73 Tata 45 5001 to 10000 8 0 41 27 19 3 10001 to 25000 12 0 17 12 3 0 25001 to 50000 Above 50000 2 0 0 0 0 0 0 0 0 0 0 0

140 120 100 80 60 40 20 0


Bs nl H ut ch Id ea Ai rt el ia nc e Ta ta el

Below 5000 5001 to 10000 10001 to 25000 25001 to 50000 Above 50000

Area-2 (North-west region)

Below 5000 Airtel 94 Bsnl 42 Hutch 58 Idea 86 Reliance 67 Tata 43

5001 to 10000 11 0 49 26 0 0

10001 to 25000 6 0 9 4 2 1

25001 to 50000 Above 50000 1 1 0 0 3 1 2 1 0 0 0 0

36

Assessment of Distribution Network for Idea in Ahmedabad

100 80 60 40 20 0
l ut ch Id ea Ai rte Bs nl nc e el ia H Ta t a

Below 5000 5001 to 10000 10001 to 25000 25001 to 50000 Above 50000

Area-3 (North-east region)

Below 5000 Airtel 84 Bsnl 46 Hutch 86 Idea 52 Reliance 52 Tata 29

5001 to 10000 11 0 14 15 15 3

10001 to 25000 16 0 13 21 3 0

25001 to 50000 Above 50000 3 0 0 0 3 0 3 0 0 0 0 0

100 80 60 40 20 0
Bs nl H ut ch Id ea Ai rt el ia nc e Ta ta el

Below 5000 5001 to 10000 10001 to 25000 25001 to 50000 Above 50000

37

Assessment of Distribution Network for Idea in Ahmedabad

Area-4 (Middle-east region)

Airtel Bsnl Hutch Idea Reliance Tata

Below 5000 81 61 84 78 62 39

5001 to 10000 10 0 18 18 15 5

10001 to 25000 25 0 17 17 10 0

25001 to 50000 Above 50000 0 0 0 0 0 0 0 0 0 0 0 0

90 80 70 60 50 40 30 20 10 0
Bs nl H ut ch Id ea nc e Ai rt el ia Ta ta el

Below 5000 5001 to 10000 10001 to 25000 25001 to 50000 Above 50000

38

Assessment of Distribution Network for Idea in Ahmedabad

9.Sales person visit (Efficiency of Salesman Of Distributor)

Area-1 (South-east region)

Airtel Bsnl Hutch Idea Reliance Tata

Once 11 5 5 8 15 6

Twice 39 18 50 44 28 24

More than twice 90 2 88 92 52 17

Not at all visited 0 25 0 0 0 1

100 80 60 40 20 0
Ai rte l Bs nl H ut ch a ia nc e Ta ta Id e

Once Twice More than twice Not at all visited

Conclusion: From the above graphical representation, we can conclude that the efficiency of sales person of Idea is highest, closely followed by Airtel and Hutch. So all three companies are much focus for their distributor efficiency.

R el

39

Assessment of Distribution Network for Idea in Ahmedabad

Area-2 (North-west region)

Airtel Bsnl Hutch Idea Reliance Tata

Once 17 8 12 13 16 10

Twice 49 15 52 53 24 29

More than twice 47 6 56 53 29 5

Not at all visited 0 13 0 0 0 0

60 50 40 30 20 10 0
Ai rte l Bs nl H ut ch a ia nc e Ta ta Id e

Once Twice More than twice Not at all visited

Conclusion: From the above graphical representation, we can conclude that the efficiency of sales person of Hutch is highest, closely followed by Idea and Airtel. The reliance is also come up with good strength for distribution after those three. So all three companies are much focus for their distributor efficiency.

R el

40

Assessment of Distribution Network for Idea in Ahmedabad

Area-3 (north-east region)

Airtel Bsnl Hutch Idea Reliance Tata

Once 1 0 2 1 0 1

Twice 14 0 17 16 12 19

More than twice 99 1 97 99 58 11

Not at all visited 0 45 0 0 0 1

120 100 80 60 40 20 0
Bs nl H ut ch Id R ea el ia nc e Ta ta Ai rt el

Once Twice More than twice Not at all visited

Conclusion: From the above graphical representation, we can conclude that the efficiency of sales person of Airtel and Idea are almost same, closely followed by Hutch. The reliance is also come up with good strength for distribution after those three. So all three companies are much focus for their distributor efficiency.

41

Assessment of Distribution Network for Idea in Ahmedabad

Area-4 (Middle-east region)


Once 0 1 0 0 0 1 Twice 4 0 6 6 6 16 More than twice 112 0 113 114 81 25 Not at all visited 0 60 0 0 0 2

Airtel Bsnl Hutch Idea Reliance Tata

120 100 80 60 40 20 0
Bs nl H ut ch Id R ea el ia nc e Ta ta Ai rt el

Once Twice More than twice Not at all visited

Conclusion: From the above graphical representation, we can conclude that the efficiency of sales person of Airtel and Idea are almost same, closely followed by Reliance. But with comparison of other three region the performance of all representative is somewhat low. So all three companies are much focus for their distributor efficiency.

42

Assessment of Distribution Network for Idea in Ahmedabad

10. Managers visit (Efficiency of executives & Managers) Area-1(South-west region)

Airtel Bsnl Hutch Idea Reliance Tata

Once 36 0 39 43 35 6

Twice 0 0 0 1 0 0

More than twice 0 0 2 2 0 0

Not at all visited 104 50 102 98 60 42

120 100 80 60 40 20 0
Ai rte l Bs nl H ut ch a ia nc e Ta ta Id e

Once Twice More than twice Not at all visited

Conclusion: From the above graphical representation, we can conclude that the efficiency of Executives & managers of Hutch and Idea are almost same, closely followed by Airtel. So all three companies are much focus for their distributor efficiency.

R el

43

Assessment of Distribution Network for Idea in Ahmedabad

Area-2(North-west region)

Airtel Bsnl Hutch Idea Reliance Tata

Once 35 2 40 43 21 6

Twice 1 0 1 1 0 0

More than twice 3 0 2 5 1 1

Not at all visited 74 40 77 70 47 37

90 80 70 60 50 40 30 20 10 0
Ai rte l Bs nl H ut ch a ia nc e Ta ta Id e

Once Twice More than twice Not at all visited

Conclusion: From the above graphical representation, we can conclude that the efficiency of Executives & managers of Idea is highest, closely followed by Hutch and Airtel. But with comparison of other regions the performance of all representative is somewhat low.

Area-3 (North-east region)

R el

Airtel Bsnl Hutch Idea Reliance Tata

Once 47 0 18 44 37 4

Twice 0 0 0 0 0 0

More than twice 1 0 1 1 1 1

Not at all visited 66 46 97 71 32 27

44

Assessment of Distribution Network for Idea in Ahmedabad

120 100 80 60 40 20 0
l Bs nl H ut ch Id ea Ai rte nc e el ia Ta t a

Once Twice More than twice Not at all visited

Conclusion: From the above graphical representation, we can conclude that the efficiency of Executives & managers of Idea and Airtel are almost same, closely followed by Hutch and Airtel. But with comparison of other regions the performance of all representative is somewhat low.

Area-4(Middle-east region)

Airtel Bsnl Hutch Idea Reliance Tata

Once 47 1 22 50 49 11

Twice 0 0 0 0 0 0

More than twice 0 0 0 0 0 0

Not at all visited 69 60 97 70 38 33

45

Assessment of Distribution Network for Idea in Ahmedabad

120 100 80 60 40 20 0
Ai rte l Bs nl H ut ch a ia nc e Ta ta Id e

Once Twice More than twice Not at all visited

Conclusion: From the above graphical representation, we can conclude that the efficiency of Executives & managers of Idea and Airtel are almost same, closely followed by Hutch and Airtel. But with comparison of other regions the performance of all representative is somewhat low.

R el

46

Assessment of Distribution Network for Idea in Ahmedabad

Findings

From the above data and the analysis we have made the final conclusion is as under: Our main objectives of the project are: To assess market share of the Idea vis--vis other competitor. To analyze effectiveness of ideas representative vis--vis other competitor. To study and analyze the reach of Ideas distribution network vis--vis other competitor. To assess the distribution depth of Idea vis--vis other competitor. Conclusion: Idea is the major competitor in the Ahmedabad and has a leading position in many areas like distribution reach and efficiency of distributor. As far as the reach of Ideas distribution network is consult the idea has a leading position. For distribution of the cards, the services and the reach are good enough. There is some problem with some far areas but overall performance is focused. As far as the efficiency is consult the idea has a moderate position. For distribution of the cards and the efficiency of the executives and the managers are good enough. The work is focused.

47

Assessment of Distribution Network for Idea in Ahmedabad

RECOMMENDATIONS

As far as network is consult, the performance of the Idea is weak, as compared to the Hutch and Airtel and Reliance. So, Try to improve on such factor via increasing a technical support.

Same problem is with call center, as far as customer care services are consulted, the performance is not up to the mark again. Compare to the Idea, hutch and Airtel has comparatively good performance. So, idea has to work upon it and try to make it more efficient with training programs.

The problem existed with the Middle East and some areas of Southwest region. The retailers are quite dissatisfied with the distributor services. So, particularly for those areas the frequency of visits and the quality of meetings of sales persons should be increased.

The performance of Idea is good, in particularly western part of the city, but still in other areas like eastern part, the need of the more awareness campain is required.

Make a good relationship with retailers. Need to show and maintain great companys support. Which makes retailers themselves sell and promote companyscards. And the same helps to create better public image.

The impact of Idea chitchat on customers is not powerful compared to Hutch so, try it to be strong by more promotions from the ways that has powerful impact on publics mind like Radio Mirchi, local cable and newspapers.

Organizing of retail events (Retail Meet) that are opening a new Retail club.

To expand the market the company should not only concentrate over the urban areas, but also have look at the uncaptured rural market. And establish good offers considering the villagers requirements.

48

Assessment of Distribution Network for Idea in Ahmedabad

Try to get the trust of customer by providing better services and attractive schemes. Every customer wants satisfaction from the product so give him or her as much convenience as possible to make him or her a permanent customer.

The retailer whosoever are of the more recharge voucher purchasers, should offered the extra benefits other than the regular one. The problem is with the Network and the call center services. Idea should work upon the same and try to make it efficient with more technical support and training programs.

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Assessment of Distribution Network for Idea in Ahmedabad

QUESTIONNAIRE
_____________________________________________________________________ Dear Sir/Madam, We are the student of S.K.Patel Institute of Management, Gandhinagar. As a part of our curriculum, we are conducting a market research to know the positions of the diff. companies in the market and make assessment of their distribution network. Kindly extend your cooperation in filling this questionnaire and enable us to conduct the research successfully. Date: _________ Retail Name: ________________________ Road: ______________________________ Address: ________________________________________________ Pin Code: _______________ Type of the shop: 1) Telecom shop 2) General / Provision store 3) Grocery shop 4) Pan shop 5) S.T.D. booth 6) Gift shop 7) Stationary shop 8) Others, please specify ________ ______________________________________________________________ 1. Which companies pre-paid cards, are you selling? Cards (a) Airtel (b) Bsnl (c) Hutch (d) Idea (e) Reliance (f) Tata 2. Since how many years, you are in the business of selling pre-paid cards in the market? a) Less than 1 year b) 1 to 3 years c) 3 to 6 years d) 6 to 9 years e) More then 9 years FOD

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Assessment of Distribution Network for Idea in Ahmedabad

3. How many pre-paid cards of different companies you sell in a month? 0/Recharge (a) Airtel a) I (b) Bsnl d (c) Hutch e (d) Idea a (e) Reliance (f) Tata _ 4. What is the recharge value sold at your outlet per month (in rupees)? Below 5000 (a) Airtel (b) Bsnl (c) Hutch (d) Idea (e) Reliance (f) Tata 5001 to 10000 10001 to 25000 25001 to 50000 Above 50000 1 to 5 6 to 25 26 to 50 Above 50

5. From whom you purchase the pre-paid cards of different companies? From companys sales-person (a) Airtel (b) Bsnl (c) Hutch (d) Idea (e) Reliance (f) Tata A) If from other dealers, than what is the reason? Discount (a) Idea (b) Hutch (c) Airtel (d) Bsnl (e) Reliance (f) Tata Credit Distributors services From other dealers

51

Assessment of Distribution Network for Idea in Ahmedabad

6. How frequently the salesman of distributor visits your shop in a week? Once (a) Airtel (b) Bsnl (c) Hutch (d) Idea (e) Reliance (f) Tata Twice More than twice Not at all visited

7. How frequently the companys sales executives/manager visits your shop in a month? Once (a) Airtel (b) Bsnl (c) Hutch (d) Idea (e) Reliance (f) Tata Twice More than twice Not at all visited

8. Are you getting clearly and timely information from companys sales representative about different schemes launched? Yes Trade Scheme (a) Airtel (b) Bsnl (c) Hutch (d) Idea (e) Reliance (f) Tata No

52

Assessment of Distribution Network for Idea in Ahmedabad

Yes Consumer Scheme (a) Airtel (b) Bsnl (c) Hutch (d) Idea (e) Reliance (f) Tata

No

9. Give the rank to the different companies, according to their performance in the different area. (Use 6 to 1 rank. 6 for best and 1 for worst). You cannot repeat ranks given once. Airtel Network Company schemes Trade schemes Distributor services Call center services Bsnl Hutch Idea Reliance Tata

10. Who are the main buyers of the different companys pre-paid cards? Students (a) Airtel (b) Bsnl (c) Hutch (d) Idea (e) Reliance (f) Tata Others

53

Assessment of Distribution Network for Idea in Ahmedabad

Area of Ahmedabad with their Pin codes

Area
Air port Amraiwadi Behrampura Bapunagar Cantonment Civil Hospital Ellisbridge Gandhi Ashram Thakkar Bapa Nagar Ghatlodia Girdharnagar Isanpur Jantanagar Jivraj Park Juhapura Kathwada Maiz Product Khodiarnagar Krishna Nagar Kubernagar Maninagar Memnagar Naranpura Vatva Naroda Naroda Road Navjivan Navrangpura Narol Odhav Odhav Ind Estate Paldi Polytechnic Railway Pura

Cod No.
380012 380026 380022 380024 380003 380016 380006 380027 382350 380061 380010 382443 382449 380051 380055 382430 382352 382346 382340 380008 380052 380013 382440 382330 380025 380014 380009 382405 382410 382415 380007 380015 380002

54

Assessment of Distribution Network for Idea in Ahmedabad


Rajpur Gomtipur Rakhial Ind Estate Ranip Sabarmati Sabarmati Rly Colony Saijpur Bogha Saraspur Shah Alam Roza Shahibag Sardar Nagar Space Application Centre Thal Tel Road 380021 380023 382480 380005 380019 382345 380018 380028 380004 382475 380053 380054

55

Assessment of Distribution Network for Idea in Ahmedabad

BIBLIOGRAPHY
The reference books were used for this report were: Marketing Management (Eleventh Edition) by Philip Kotler published by Pearson Education Business Research Methods (Eighth Edition) by Donald R. Cooper and Pamela S. Schindler published by Tata McGraw-Hill. The web sites referred for the report were: www.ideacellular.com www.google.com.

56

Assessment of Distribution Network for Idea in Ahmedabad

Glossary
FOD: The advertising tools, which make show off the product. (Like wise, the stickers, shelf, artificial model etc,) The glosign boards of the different company are not included in the FOD.

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