marketing plan of tata telecom
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TERM PAPER
ON
TATA TELECOM
SUBMITTED TO, SUBMITTED BY,
Ms. Jaspreet Kaur Karan Wadhera
RT1803A16
10808494 (reg. no.)
CONTENTS
EXECUTIVE SUMMARY TELECOM INDUSTRY PORTER MODEL SLEPT ANALYSIS SEGMENTATION, TARGETING AND POSITIONING SUSTOMER GAPS QUALITY CONCERNS MARKETING MIX I.E. 7P’S SERVICE MARKET BLUEPRINT PRICING STRATEGY OTHER STRATGIES.
Executive Summary
Tata Teleservices is part of 98 co the Rs. 119,000 Crore (US$ 29 billion) Tata Group that has over mpanies, over 289,500 employees and more than 2.9 million shareholders. With a committed investment of INR 36,000 Crore (US$ 7.5 billion) in Telecom (FY 2006), the Group has a formidable presence across the telecom value chain.
The company, which heralded convergence technologies in the Indian telecom sector, is today the market leader in the fixed wireless telephony market with a total customer base of over 3.8 million.
Tata Teleservices’ bouquet of telephony services includes Mobile services, Wireless Desktop Phones, Public Booth Telephony and Wire line services. Other services include value added services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services.
Tata Teleservices has a strong workforce of 6000. In addition, TTSL has created more than 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its manpower needs.
In this report I’m going to study the service market environment , market mix , segmentation of Tata telecom , quality concerns , positioning map , service blueprint , integrated communication , pricing strategies etc.
The core aim of this term paper is to study the working of the service organization such as Tata Telecom to develop better understanding of the working of service organization.
TELECOM INDUSTRY
' Indian Telecom Industry' is the third largest and fastest growing in the world with nearly 200 million connections.
Subscriber growth rate is 45%
The wireless technologies currently in use ' Indian Telecom Industry '
Global System for Mobile Communications (GSM)
Code Division Multiple Access (CDMA).
There are primarily 11 GSM and 4 CDMA operators providing mobile services in 19 telecommunication circles and 4 metro cities, covering more than 2000 towns across the country.
Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of India' (TRAI).
Three types of players exist in ' Indian Telecom Industry ' :
State owned companies like - BSNL and MTNL.
Private Indian owned companies like - Reliance Infocomm and Tata Teleservices.
Foreign invested companies like –Vodaphone, Bharti Tele-Ventures, Aircel, Escotel, Idea Cellular, BPL Mobile, Spice Communications etc.
PORTER MODEL
Threat from New Entrants Supply Side Economies Of Scale
• declining ARPU• Infrastructure tenancy costs• Other FC like BPO
Demand Side Benefits• Brand pull exists to some extent for brands like airtel /idea/ vodafone
Customer Switching Costs• Cost of new connection low• Proposed number portability
Capital Requirement• Extremely high infrastructure setup costs• Spectrum License cost
Incumbent Advantages Established brand image Reliability of network
Restrictive Govt. Policy
Spectrum and license allocation
3G and Number portability policy still unclear.
74% FDI cap.
Minimum requirement of number of towers.
Power of the buyer Lack of differentiation among the service provider Cut throat competition Customer is price sensitive Low switching costs Number portability to have negative impact
Supplier Bargaining Power Large number of suppliers. Shared tower infrastructure. Limited pool of skilled managers and engineers especially those well
versed in the latest technologies. Medium cost of switching since changing their hardware would lead to
additional cost in modifying the architecture. Overall influence on the industry - medium
Rivalry among Existing Competitors
High Exit Barriers High Fixed Cost 6-7 players in each region 3 out of 4 BIG-Four present in each region Very less time to gain advantage by an innovation (Eg. Caller tunes, life
time card)Price wars Threat of Substitutes
Some Substitutes: VOIP (Skype, Messenger etc.) Online Chat Email Satellite phones
None of the above a major threat in current scenario. Price-Performance trade-off very high. Issues of mobility and penetration with the substitutes.
SLEPT ANALYSIS
POLITICAL FACTORS
1) Open for new entrants
2) Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of India' (TRAI).
ECONOMICAL FACTORS
1) Contribution to the Indian economy.
2) Increasing competition resulting in low tariff cost.
4) The growth of the middle income group family affects the Telecom sector.
SOCIAL FACTORS
1) Development of cities leads to better services and communication.
2) Employment opportunities.
3) Better and improved sevices.
TECHNOLOGICAL FACTORS
1) Introduction of 3G.
2) Sharing of towers for no network problem
3) Modernisation and privatisation of the telecom industry.
4) Better network coverage.
ENVIRONMENTAL FACTORS
1) huge vast Indian market is difficult to be covered.
2) Shortage of the infrastructural capacity
LEGAL FACTORS
1) FDI limits
2) Bilateral treaties among all players in the market.
Segmentation, Targeting, positioning
• Segmentation
Geographic Region
Density
Social Classes
Income Level
• Targeting
Company executives
Lower middle, upper middle, lower upper segment
• Positioning
Lifestyle
Benefits
Quality
Here , Tata telecom have various plans and tariff rates as per the need and requirement of various segmentations, such as corporate plans for business people , night plans , low tariff plans for middle and lower income group , Blackberry with their telecom service for middle and high income group.
TARGETING MARKET SEGMENT
FULL MARKET COVERAGE
Tata telecom is following full market coverage strategy as they have wide range of offerings for the customers i.e. various tariff plan depending upon the segment the customer belongs to for example the charges for the corporate plans are different from that of residential use plans.
DIFFERENTIATED MARKETING
For full-market-coverage they are following the differentiated marketing strategy, under which for each market segment there will be different marketing mix. For example the charges for corporate plans are different from those of home plans and the feature are also different on the both.
Customer GAP:-
The service gap means the gap between expected service and perceived service is known as customer gap. There are five kinds of gaps in customer gap.
These 5 gaps are involved in service gaps. These are as follows:-
The five gaps that organizations should measure manage and minimize:
Gap 1 is the distance between what customers expect and what managers think they expect - Clearly survey research is a key way to narrow this gap.
Gap 2 is between management perception and the actual specification of the customer experience Managers need to make sure the organization is defining the level of service they believe is needed.
Gap 3 is from the experience specification to the delivery of the experience -managers need to audit the customer experience that their organization currently delivers in order to make sure it lives up to the spec.
Gap 4 is the gap between the delivery of the customer experience and what is communicated to customers - All too often organizations exaggerate what will be provided to customers, or discuss the best case rather than the likely case, raising customer expectations and harming customer perceptions.
Finally, Gap 5 is the gap between a customer's perception of the experience and the customer's expectation of the service - Customers' expectations have been shaped by
word of mouth, their personal needs and their own past experiences. Routine transaction surveys after delivering the customer experience are important for an organization to measure customer perceptions of service
Quality concerns customer’s point of view
There should be proper planning and implementation of control program in order to attain the desired results for the company.
There should be regular check and improvement for the service in order to meet the customer’s expectations.
As we know that success of any service organization depends upon how strong that bank is in managing its employees and retaining them over the period of time to have much better customer and employee relationship.
From the figure it’s clear that for attaining high profitability Tata telecom should try to have customer satisfaction which can only be attained if the employees are satisfied and they work wholly and solely for the company.
Marketing Mix 7p’s
Service blueprint
PRICING STRATEGY
They are following differential pricing strategy , they are offering varied tariff plans from which the customers can choose as per their requirements.
POSTPAID
Postpaid allows you to choose from a variety of affordable talk plans, convenient payment
options and host of rich features. So get set to enjoy a world of limitless possibilities!
Reference Tarif Packages (RTP)
ON TIME CHARGES
Activation Charges Rs. 250
Membership Fee Rs. 250
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 524
Bill plan Charge Rs. 444
Monthly Rental Rs. 150
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 99
Tata GSM /
CDMA (10
Digit)
Landline /
WLL
Local Rates Rs. 1.99 Rs 1.99 Rs 1.99
STD RATES
50 – 200 Km
200 – 500 Km
500 + Km
ISD
USA, Canda, Europe (Fixed Line),
Austalia, Singapore, Hong Kong, Thailand,
Malaysia, Indonesia, new Zealand
Rs. 7.20
Gulf, Europe (Mobile), SAARC Countries,
Africa & Rest of the world
Rs 9.99
Cuba, Sao tome & Principle, Guinea
Bissau, Diego Garcia, Nauru, Solomon
Islands, Vanuatu, Cook Island, Tuvalu,
Tokelau, Norfolk Island, Sakhalin
Rs. 40.00
SMS
Local Rs. 1.00
National Rs. 2.00
International Rs. 5.00
Value Added Services (Rs.) Rs. 3.00
One Standard 150
ONE TIME CHARGES
Activation Charges Rs 250
Membership Fee Rs 250 (Converts into security after 24 months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 150
Bill Plan Charge Rs. 50
Monthly Rental Rs. 150
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 50
Bissau, Diego Garcia, Nauru, Solomon Islands,
Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk
Island, Sakhalin
one Standard 299
ONE TIME CHARGES
Activation Charges Rs 250
Membership Fee Rs 250 (Converts into security after 24
months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs 299
Bill Plan Charge Rs. 150
Monthly Rental Rs. 299
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 50
Tata GSM / CDMA
(10 Digit)
Landline /
WLL
LOCAL RATES Re. 1.00 Rs. 1.00 Rs. 1.00
STD RATES
50-200Km Rs. 2.00 Rs. 2.40 Rs. 2.40
200 – 500 Km Rs. 2.00 Rs. 2.40 Rs. 2.40
500 + Km Rs. 2.00 Rs. 2.40 Rs. 2.40
ISD
USA, Canda, Europe (Fixed Line), Austalia,
Singapore, Hong Kong, Thailand, Malaysia,
Indonesia, new Zealand
Rs. 7.20
Gulf, Europe (Mobile), SAARC Countries,
Africa & Rest of the world
Rs 9.99
Cuba, Sao tome & Principle, Guinea Bissau, Diego
Garcia, Nauru, Solomon Islands, Vanuatu, Cook
Island, Tuvalu, Tokelau, Norfolk Island, Sakhalin
Rs. 40.00
SMS
Local Rs. 1.00
National Rs. 2.00
International Rs. 5.00
Value Added Services (Rs.) Rs. 3.00
You also enjoy 25 FREE local mobile to mobile SMS
Senior Citizen Plan
ONE TIME CHARGES
Activation Charges Rs. 250
Membership Fee Rs. 250 (Concerts into security deposit
after 24 months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 150
Bill Plan Charge Rs. 51
Monthly RentalRs. 99
Clip NA
Cuba, Sao Tome & Principle, Guinea Bissau, Diego
Garcia, Nauru, Solomon Islands, Vanuatu, Cook
Islands, Tuvalu, Tokelau, Norfolk Island, Sakhalin
SMS
LocalRs. 1.50
National Rs. 2.00
International Rs. 5.00
VAS Rs. 3.00
With Senior Citizen Plan
STRATEGIES
Product Offer a basic product/
service.
Offer value added
services
Increase in number of
value added services.
Price Charge cost- plus Price to penetrate
market
Price to match or best
competitors
Distribution Build selective
distribution
Build Intensive
distribution.
Build more intensive
distribution.
Advertising Build product awareness
among early adopters
and dealers.
Build awareness and
interest in the mass
market
Stress brand differences
and benefits.
Sales Promotion Use heavy sales
promotion to entice
people to subscribe.
Increase to build and
maintain relationships
with customers.
Increase to encourage
brand-switching.
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