customer relationship management and service delivery and quality in idea cellular ltd (gsm)(2)

7/28/2019 Customer Relationship Management and Service Delivery and Quality in Idea Cellular Ltd (Gsm)(2)

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CUSTOMER RELATIONSHIP MANAGEMENT

AND CONSUMER SATISFACTION IN IDEA

CELLULAR LTD.

MAJOR PROJECT

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

OF BBA (Banking & Insurance)

SESSION-2009-2012

SUBMITTED BY :

NAME: NIKHIL KUMAR GARG

BBA(B&I) SEM-VI

ENROLLMENT NO. 02812401809

DELHI INSTITUTE OF RURAL DEVELOPMENT

NAGLI POONA,DELHI 110036.

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

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DECLARATION

I hereby declare that this project work entitled CUSTOMER

RELATIONSHIP

MANAGEMENT AND SERVICE DELIVERY AND QUALITY IN

IDEA

CELLULAR LTD (GSM) is based on my original study and has notbeen

submitted eailer for award of any degree or diploma to any institute or

university.

The work of other author(s), wherever used, has been acknowledged

at appropriate place(s).

Place: New Delhi

Date:

Countersigned Candidate signature

Name: MS. ANJALI AHUJA NIKHIL KUMAR GARG

Supervisior Enrollment no.

02812401809

D.I.R.D

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TABLE OF CONTENTS

TOPIC PAGE NO.

CHAPTER - 1 INTRODUCTION 1-41

1.1. Overview of Industry as a whole 2

1.2. Profile of the Organization 16

1.3. Problems of the Organization 28

1.4. Competition Information 29

1.5. S.W.O.T Analysis of the Organization 39

CHAPTER - 2 OBJECTIVE & METHODOLOGY 42-48

2.1. Significance 43

2.2. Managerial usefulness of the study 43

2.3. Objectives 43

2.4. Scope of the study 44

2.5. Methodology 45

CHAPTER - 3 CONCEPTUAL DISCUSSION 49-66

CHAPTER - 4 DATA ANALYSIS & FINDINGS 67-79

CHAPTER 5 CONCLUSIONS & RECOMMENDATIONS 80-84

BIBLIOGRAPHY

ANNEXURES

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PREFACE

When CHARLES DARWIN spoke of The survival of fittest, he could

have been speaking of the cut throat competition of todays market and

Corporate Ambition. Such is the rat race that PROFIT is becoming an

Obsession.

I got an opportunity to make an major project on, IDEA Cellular Ltd.

where I was allotted the project entitled Customer Relationship

Management and Service Delivery and Quality.

The first part of the project was to understand the concept of Telecom

Industry, (GSM) and conduct a survey, in order to trace out the

prospective competitors in this business.

The second part of the project was carried out by meeting Channel mobile

partners and corporate customers and direct walk in customers who use to

come with their queries in zonal office by handling their problems and

understanding their customer type and give them a quality service. Each

chapter in this report is organized to provide clarity and continuity.

It gives me immense pleasure to express my deep sense of gratitude to

DR. NARENDER MOHAN, director.

I am extremely thankful to MISS ANJALI AHUJA, Faculty

Guide of Delhi Institute of Rural Development, for her timely guidance

and support through out the Final project work. In the course of carrying

out the project work.

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CHAPTER-1

INTRODUCTION

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1.1 OVERVIEW OF INDUSTRY AS A WHOLE

CELLULAR INDUSTRY.

The Indian cellular industry hosts companies competing for a place in the

market. Over 20 businesses are vying for their share; with time, mergers

and acquisitions may narrow the field. One major restraint is the

seemingly astronomical financial projections generated by the multitude

of companies resulting in unreasonable premium demands on the behalf

of prospective sellers. The excitement about Indian cellular operator

value is unjustified, however, and people in India have suffered for this

overestimation .The cellular industry has seen huge price wars resulting

in tougher competition ,everyone has huge pockets and now leaving

prices cellular companies are trying to increase the subscriber base by

providing number of value added services .They are trying to increase

customer loyalty .

FACTS: when mobile was launched in India sms was considered asvalue added service but as time passed and with the emergence of more

players in the market the sms became the common service . For customer

delight the operators went on value added services spree .Here are some

details of value added services provided by major players in Delhi region.

7

MARKET SHARE

AIRTEL

77%

Vodafone9%

MTNL

11%IDEA

3%AIRTEL

VodafoneMTNL

IDEA


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Indian Cellular Market - Earlier Roadblocks and Their Resolution.

Indian Cellular market immediately after the first round of licensing in

1994-96 was beset by several problems for 3 - 4 years till the New

Telecom Policy of 1999 was announced. Some of these roadblocks /

current position is tabulated below:

ROADBLOCKS/ CURRENT POSITION

High license fees: Migration to revenue sharing mode in 1999 mitigates

high initial fund requirements for payment of license fees.

Inadequately funded businesses / weak and fragmented promoters

Businesses that have since been adequately funded growing at over 60%

per annum, while businesses with weak promoters continuing to languish

- spate of acquisitions / mergers, with 4/5 major groups emerging in the

last one/two years.

Regulatory authority not in place

Telecom Regulatory Authority of India (TRAI) firmly in place, and its

role being accepted by all operators; Deptt of Telecommunications

(DOT) restructured, with operations and policy making roles vested in

different bodies.

Issues relating to unfavorable interconnect terms for private operators,

pass through income, intra circle long distance, spectrum availability and

allocation and the like remained unresolved for long periods.

Interconnect terms since rationalized, risks on pass through income to

DOT / MTNL (Mahanagar Telecom Nigam Ltd.) resolved to the

satisfaction of all parties with changes in methodology / revenue sharing,

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intra circle long distance allowed, spectrum availability cleared with

vacation of frequencies for usage by GSM operators.

Problems in Financial closures due to:

Licensing tenure of 10 years

Large up front cash requirements from promoters due to heavy license

fee burden in initial stages of deployment Asset based financing

approach by Indian Financial Institutions.

Licensing tenure increased from 10 to 20 years

Large up front cash requirements for license fee payments mitigated

with migration to revenue sharing mode allowing promoters to deploy

more capital for capital expenditure; project financing being

considered by most financial institutions.

Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed as

a matter of routine allowing ease of entry / exit - paves the way for full

control of businesses by foreign companies.

Inadequate growth of market / subscribers

Roadblocks spelt out earlier resulted in low market / subscriber

growth, but with corrective measures taken, market / subscriber base

expected to zoom

Developments in the Cellular Industry

The interconnection regime between cellular operators and fixed-line

operators is still biased against the former.

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Despite the recent gains of the cellular industry, not everything is rosy.

The cellular penetration rate is still very low at 0.8 percent in a nation of

over one billion people.

In recent years, many foreign companies had pulled out from their

cellular joint ventures in India due to the difficult operating environment

and bureaucracy. In 1999 alone, Swisscom pulled out from Sterling

Cellular, Telstra from Modi Telstra and both the Telecom Organization of

Thailand and Jasmine International from JT Mobile. In 2000, Telecom

Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra of

Thailand and Bezeq exited from Fascel. In June 2001, British Telecom

exited from Bharti Cellular. Bell South International has also indicated its

intention to pull out from Skycell Communications, and Hong Kong-

based Distacom is seeking to sell its stake in Spice Communications.

First Pacific's (based in Hong Kong) continued commitment to Escotel is

uncertain, and the former is reviewing various options.

The string of sell-outs notwithstanding, there has been a merger and

acquisition wave sweeping across the Indian cellular industry in recent

years. Hong Kong-based Vodafone Whampoa, via Vodafone

Telecommunications (HK), acquired major stakes in Sterling Cellular

(December 1999), Usha Martin Telecom (mid-2000) and Fascel

(September 2000). Through a partnership with local company, KotakMahindra Finance, Vodafone Whampoa practically controls Fascel and

Usha Martin Telecom, thus circumventing the 49 percent limit on foreign

ownership in Indian cellular operators. Vodafone Whampoa is also the

controlling shareholder of Vodafone Max Telecom. Not to be outdone,

Bharti Enterprises another major cellular player acquired control of

JT Telecom, which was later renamed Bharti Mobile (December 1999),

and Skycell Communications renamed Bharti Mobinet (August 2000).

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Bharti also acquired the Punjab license of Essar and started operations,

giving competition to the lone operator there, Spice Communications.

Going forward, Bharti is likely to merge all its cellular companies into

one entity.

Five companies together bid Rs16.3 billion to bag the licenses for the

fourth operator slots in four metros and 13 circles. Bharti emerged as the

No. 1 bidder with eight new licenses, followed by Escotel with four,

Vodafone with three, and Reliance and Idea cellular with one each. Bharti

and Vodafone have already commenced operations in all the circles while

Idea is set to launch in Delhi. Escotel and Reliance have not made any

headway.

MTNL, the third cellular operator for Delhi and Mumbai, started services

in March 2001. BSNL, as the third nationwide cellular operator, launched

services in Kolkatta and Bihar in January 2002. This was followed byTamil Nadu in July 2006. A nationwide launch was scheduled for 2

October 2006. However, this has been postponed until after mid October.

Once BSNL rolls out its service, most telecom circles will have four

cellular operators. There will be tremendous competitive pressure, which

will result in lower tariffs. Future rate cuts are expected, which will drive

demand, together with falling handset prices and the introduction ofprepaid services.

In the midst of declining interest in technology stocks, Bharti came out

with its long-awaited initial public offering (IPO) in January 2002.

Leveraging on the success of its cellular service, the company got a very

good response from the primary market. The total size of the IPO was

185 million shares at a floor price of Rs10. The issue was oversubscribed

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by more than 2.5 times, netting Rs8.3 billion. This will be used to fuel its

investment in long-distance, basic and cellular services.

As of October 2002, only AIRTELMobile has launched commercial

general packet radio service (GPRS) in Mumbai. However, large-scale

uptake remains elusive. While both Bharti and Idea have GPRS-enabled

networks, there is caution on their part to launch the service. With hardly

any applications, the success of GPRS remains a question.

Building Visibility and Awareness

Deviating from competing on the price platform, cellular operators are

actively promoting their brand and service portfolio through high-

visibility advertising and promotional campaigns. Cellular operators like

Bharti, Orange and AIRTELMobile have been advertising aggressively

on hoardings and kiosks. Public transport like the city rail system and

cabs are used widely to carry the message of mobility.

Customer-focused activities are gaining traction among cellular operators

with the establishment of longstanding consumer benefit programs.

Orange in Mumbai offers "Orange Holidays" and "Orange Monsoon

Offers" at very attractive rates and added benefits like discounts on

airfare, food and beverages, among others. Others offer special privilegesin retail outlets, cinemas and music shops.

Enterprise Mobile Applications Promising Revenue Stream

All along, customer acquisition and the top line have been the focus. Few

operators have concentrated on offering differentiated services for

businesses. However, as operators realize that offering basic voice and

Short Message Service (SMS) will get them the numbers but not the

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margins, some are now seriously looking at the enterprise segment for

provisioning superior services.

Cost-centered solutions like closed user group (CUG), value-adds like

unified messaging and instant alerts are being offered. A variety of

mobile applications are finding takers among the enterprise segment.

Bharti is in the process of introducing a facility to fleet management

companies so that they can improve the efficiency of trucks or buses by

tracking movement and ensuring higher-use, accurate route planning.

Premium automakers are also installing a global system for mobile

communications inside a vehicle to help trace lost vehicles and track

down stolen cars.

Corporations can choose enhanced services like user-defined call routing

to prevent misuse. Calls can be barred, limiting access to select numbers

and diverting calls to one single number. Broadcasting services are alsoquite popular, especially among fast food centers that have a central

number. Group SMS is quite popular, especially among enterprises both

in the service as well as the fast-moving consumer goods (FMCG)

segment that have a large field force and need to provide regular updates

on inventory status, discount schemes and movement of goods from

warehouse to the retail outlet. Banks too find bulk SMS service veryuseful to forward transactional alerts to their customers.

Future Trends and Development

There will be more competition, forcing operators to constantly focus on

differentiations to maintain their lead.

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The implementation of enhanced networks like 2.5G will enable

operators to offer data services. This is an opportunity to customize and

differentiate better.

The entry of state-run operators like BSNL and MTNL means that prices

will no longer be controlled, thus there is less chance of a cartel being

formed.

Network coverage in terms of geographic spread and quality of coverage

is crucial especially for the business subscriber.

The bigger the service provider's national presence, the better it is for

businesses. On the roaming front, signing up with a national operator is

advantageous.

Limited mobility wireless in local-loop services (by fixed network serviceproviders) will be a disadvantage for cellular operators in the short term.

Consequently, operators need to streamline their customer relation

activities and adopt aggressive subscriber acquisition and retention

strategies.

Telecom Sector Update - January 2009Telecom statistics

November07 December 08 January09

Total

subscribers

119.9mn 123.85mn 129.82mn

Tele-density 11.00 11.43 12.00

Fixed line 48.47mn 48.93mn 49.21mn

Additions

during the

0.28mn 0.46mn 0.28mn

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month

Mobile 71.46mn 75.92mn 80.61mn

Total additions

during the

month

3.51mn 4.46mn 4.69mn

GSM additions 2.32mn 3.19mn 3.52mn

CDMA

additions

1.18mn 1.17mn 1.17mn

Source: TRAI

Indias Tele-density in January 2008 neared 12% with the subscriber base

nearing the 130mn mark. During January 2008, record 5mn subscribers

were added as against 4.92mn subscribers in December 2007. This strong

growth could be attributed to lifetime validity cards launched by almost

all operators. During the first 10 months of FY06, 31.41mn subscribers

have been added. In the fixed segment, a total of 0.28mn subscribers were

added during January 2008, taking the subscriber base of fixed line

services to 49.21mn. In the mobile segment, total additions during the

month summed up to 4.69mn with highest ever GSM additions of 3.52mn

and CDMA additions of 1.17mn. During the first 10 months of FY08,

28.39mn subscribers have been added

Telecom Industry in India

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At A Glance

In so-called developed countries, growth in telecoms is in value added

services, but in developing countries like India, the priority is on

providing basic telephony and using telecom to improve peoples lives.

The Indian Economy is on a path of resurgence. The gradual opening of

the economy has ensured steady growth even at the time when other

countries were in the grip of a massive slow down. Progressive reforms

such as removal of restrictions on foreign investment and industrial

delicensing are responsible for this growth

Such structural changes have had a positive impact on the telecom sector

and a compounded annual growth rate of 13.43% is estimated for 2002-

2006 (Frost & Sullivan). The future of the industry lies in mainline and

cellular segments and constant technological innovations such as Internet

Protocol (IP)- based services. Revenues from voice and data services areexpected to increase sharply due to surge in usage. Listed below is the

present scenario and progress of the Telecom sector in India:

India has a mere 1.2 telephones for every 100 of its people. This is way

below international standards and is not becoming of a country aspiring

to be a major player in the global economy of the 21st century. Thismeans that opportunities for investment in this sector are immense.

Basic voice services, is the biggest market. Installation of around 25

million direct exchange lines requires an investment of US$ 22 billion.

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The cumulative investment up to the year 2006 to meet demand for

cellular mobile and radio paging services is estimated at US$ 8 billion

and US$ 1 billion respectively.

Investment in Value Added Services (VAS), up to 2006, is estimated at

US$ 3.5 billion.

VSAT services have not taken off in India. Demand for electronic mail,

videoconferencing is not strong enough to justify investment. Besides,

licence fees to be paid to the Department of Telecommunications (DoT)

are too high given the size of demand.

The telecom sector has witnessed the presence of many leading foreign

companies including US companies: AT&T, Motorola, Nynex, US West,

Hughes, Harris, Qualcomm, Sprint, Telstra, NTT, Singapore Telecom,

Philippine Telecom, Bezeq, Siemens, Ericsson, Nokia, Fujitsu, Alcatel,

and Bell Canada among others.

The pre paid market is thoroughly voice driven hence companies like Pre-

Paid India (with brand Oxigen) and E-charge Tech are trying to en-cash

this phenomenon by voucher free charging through electronic re-charging

of pre-paid mobile customers. One must not forget electronic "top-ups"

through bank ATMs. These facilities were introduced for aiding voicetelephony. A similar trend is prevalent worldwide, too a survey of cellular

users conducted in Delhi sometime back, reveals that talking consumes

over 85 per cent of the pre-paid card value and over 70 per cent usage

value of post paid users. As per TRAI (Telecom Regulatory Authority of

India) data, 80 per cent of new mobile subscriber additions every month

is still in the pre-paid category only. In its performance Indicators of

Telecom Services released last June the average monthly minutes of

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usage (MoU) for cellular services have been shown as steadily growing

from 210-222 minutes in FE 2004-2005 to 301-322 in FE 2006-2007.

Though SMS applications are quite popular in the youth segment, but

ask any collegian whether she would fancy a device with text messaging

data capability alone she would snap back "SMS / MMS is cool but voice

is hot."

GSM players clock higher quarter one income

Private GSM mobile operators recorded 5.7% rise in the first quarter of

the current fiscal. Because during March gross revenue was 3557 crore

which has increased by 3760 crore for the quarter ending June 2005.

Previous quarter witnessed a 43% rise in the revenue if we compare this

figure with the previous quarter of April 05.

However the average revenue per user (ARPU) has declined by

2.89%about Rs 11 per subscriber from Rs 401for the quarter ending

march 2005to Rs 390 for the quarter ending June 2005.

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Mobile Telephony Update

Mobile telephony services are rapidly expanding and have contributed

approximately 941% to new subscriber additions in January 2006. The

segments subscriber base grew 5.16% mom to 80.61mn. Of the total

subscribers added, almost 75% subscribers belonged to the GSM

segment and the rest were CDMA segment. This strong growth is largely

attributed to the lifetime validity cards launched by all major operators.

Market share of mobile subscriber

Source: COAI, AUTSPI,

The National Telecom Policy of 1994 document, which laid out broad

policy guidelines rather than a series of action points. Like other policies,

it sought to achieve the impossible in finite time like improve quality of

service and its availability, wide coverage (a phone in every village), at

reasonable rates, etc. The targets in quantifiable terms were installation of

9.5mn additional lines, telephone on demand by 1997, and a PCO pop of

500. The Eighth Plan had also allowed private operators in value added

services. To facilitate licensing, the nation was divided into 20 circles

(akin to a state) for basic and 21 circles for cellular telephony. Mumbai

falls in Maharashtra circle and Delhi in itself a circle.

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The basic premise on which competition has been introduced is that every

circle will have one private operator apart from DoT/ MTNL for basic

and two operators for cellular. DoT/ MTNL have the option to become

the third cellular operator in future.

Government did not achieve most of its stated targets. The basic theme,

which was broadening the reach of telephony in India, has not been met.

Even liberalization policies were not implemented properly. The

regulator TRAI was set up after delays and confusion and even after its

creation, DoT continued to fight with it in courts. It was also affected by

the resource crunch, and financing options like BOT, BOOT and BOLT

was not used at all. The major policy direction it showed was to allow

private sector entry in both basic and value added services. The intention,

though noble failed to achieve its goals because of improper

implementation, the economic costs are still borne by the end user.

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1.2 PROFILE OF THE ORGANISATION

ADITYA BIRLA GROUP

The Aditya Birla Group is India's first truly multinational corporation.

Global in vision, rooted in Indian values, the Group is driven by a

performance ethic pegged on value creation for its multiple stakeholders.

Its 66 state-of-the-art manufacturing units and sectoral services span

India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada,

Australia and China.

A US$ 6.7 billion conglomerate, with a market capitalization of US$ 7

billion, it is anchored by an extraordinary force of 72,000 employees

belonging to over 20 different nationalities.

Over 30 percent of its revenues flow from its operations across the world.

A premium conglomerate, the Aditya Birla Group is a dominant player in

all of the sectors in which it operates. Such as viscose staple fiber, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon

black, chemicals, fertilizers, sponge iron, insulators and financial

services.

The Group has also made successful forays into the IT and BPO sectors.

Currently around 57 percent of our Equity Shares are held by ourPromoters who are companies belonging to the Aditya Birla Group.

Our Promoters are

Aditya Birla Nuvo Limited

Grasim Industries Limited

Hindalco Industries Limited and

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Birla TMT Holdings Private Limited.

The Aditya Birla Group is a dominant player in all of the sectors in which

it operates? Among these is viscose staple fibre, non-ferrous metals,

cement, viscose filament yarn, branded apparel, carbon black, chemicals,

fertilizers, sponge iron, insulators, financial services, telecom, BPO and

IT services.

Following table lists the major Indian companies of the Aditya Birla

Group and the products and services they offer:

Company

- Grasim

- UltraTech Cement Limited

- Shree Digvijay Cement

- Hindalco

- Indian Aluminums Company Limited

- Bihar Caustic and Chemicals Limited

- ABNL

- Idea Cellular Limited

- Birla NGK Insulators*

- Birla Sun Life Insurance Company Limited*

- Birla Sun Life Asset Management Company Limited*- Birla Sun Life Distribution Company Limited*

- PSI Data Systems

- TransWorks

- Birla Global Finance Limited

- Tanfac Industries Limited* fluorine chemicals

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http://www.grasim.com/http://www.ultratechcement.com/http://www.adityabirla.com/our_companies/indian_companies/shree_digvijay_cement.htmhttp://www.hindalco.net/http://hindalco.com/about_us/tapping_new_markets.htmhttp://www.adityabirla.com/our_companies/indian_companies/bihar_caustic.htmhttp://www.adityabirlanuvo.net/http://www.ideacellular.com/http://www.adityabirla.com/our_companies/indian_companies/birla_ngk.htmhttp://www.adityabirla.com/our_companies/joint_ventures/birlasunlife_insurance.htmhttp://www.adityabirla.com/our_companies/joint_ventures/birlasunlife_management.htmhttp://www.adityabirla.com/our_companies/joint_ventures/birlasunlife_distribution.htmhttp://www.adityabirla.com/our_companies/indian_companies/psi_datasystems.htmhttp://www.adityabirla.com/our_companies/indian_companies/transworks.htmhttp://adityabirlanuvo.co.in/products/financial_services.htmhttp://www.adityabirla.com/our_companies/joint_ventures/tanfac_industries.htmhttp://www.grasim.com/http://www.ultratechcement.com/http://www.adityabirla.com/our_companies/indian_companies/shree_digvijay_cement.htmhttp://www.hindalco.net/http://hindalco.com/about_us/tapping_new_markets.htmhttp://www.adityabirla.com/our_companies/indian_companies/bihar_caustic.htmhttp://www.adityabirlanuvo.net/http://www.ideacellular.com/http://www.adityabirla.com/our_companies/indian_companies/birla_ngk.htmhttp://www.adityabirla.com/our_companies/joint_ventures/birlasunlife_insurance.htmhttp://www.adityabirla.com/our_companies/joint_ventures/birlasunlife_management.htmhttp://www.adityabirla.com/our_companies/joint_ventures/birlasunlife_distribution.htmhttp://www.adityabirla.com/our_companies/indian_companies/psi_datasystems.htmhttp://www.adityabirla.com/our_companies/indian_companies/transworks.htmhttp://adityabirlanuvo.co.in/products/financial_services.htmhttp://www.adityabirla.com/our_companies/joint_ventures/tanfac_industries.htm


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Idea cellular

Idea Cellular's antecedents date back to 1995, when the Aditya Birla

Group and AT&T (through Birla AT&T- Maharashtra, Gujarat) and the

Tata Group (through Tata Cellular-Andhra Pradesh) came together to set

up cellular networks. In 2000, the historic path-breaking merger and the

subsequent acquisition of RPG Cellular - (Madhya Pradesh circle) helped

take their aims even further and led to the formation of Birla Tata AT&T

Limited. Since then, there has been no looking back for Birla Tata AT&T

(Idea Cellular). In its very first financial year, Idea Cellular recorded the

fastest growth among all cellular operators at a 135% increase in

subscriber base. The company BTAL (now Idea Cellular) also ranked No.

1 in customer satisfaction among all operators (as per the NFO MBL

survey), a testimony to the quality of the company's services and

subscribers. As India's leading GSM Mobile Services operator, IDEA

Cellular has licenses to operate in 11 circles.With a customer base of over 10 million, IDEA Cellular has operations in

Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,

Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh and

Kerala. IDEA Cellular's footprint currently covers approximately 45% of

India's population and over 50% of the potential telecom-market.

As a leader in Value Added Services, Innovation is central to IDEA's

VAS Factory. It is the first cellular company to launch music messaging

with 'Cellular Jockey, 'Background Tones', 'Group Talk', a voice portal

with 'Say IDEA' and A complete suite of Mobile Email Services. 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, with 'Super Power', 2 Minutes

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Outgoing Free, Lifelong offer and other segmented offerings like

Women's Card. 'Lifetime Idea' is the first and only loyalty program, for

pre paid customers, introduced by a Cellular brand. Customer Service and

Innovation are the drivers of this Cellular Brand. A brand known for their

many firsts, Idea is only operator to launch GPRS and EDGE in the

country. The latest feather in the IDEA cap is the GSM Association

Award for Bill Flash, it has recently won making it the first cellular

operator in India to win an award on this platform.

Idea Cellular is part of the Aditya Birla Group, which is India's first truly

multinational corporation. Global in vision, rooted in Indian values, the

group is driven by a performance ethic pegged on value creation for its

multiple stakeholders.

The combined holding of the Aditya Birla Group companies in Idea

stands at 98.3 per cent.

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Vision: To become most profitable Cellular company

25

Improve

Profitability

Strengthen

Channels

Reduce cost per

minute

Capture

additional

subscribers

Protect Current

ARPUsRetain existing

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Companys Mission

We will delight our customers while meeting their Individual

communication needs anytime anywhere

We survive because of our customers.

Delight: Positively surprise customers with every interaction.

Customer: Whole universe of current and potential users who have

communication needs.

Individual Communication Needs: Specific communication needs of

individual consumers.

Communication: All voice and non-voice services that are permitted

under the license Values

COVERAGE

Idea Cellular Ltd has seen phenomenal growth since its inception. Idea

Cellular's footprint idea is to first achieve critical mass, then drill deepinstead of spreading thin. In keeping with this, the company has been

providing excellent service to its subscribers in various states. It controls

a portfolio of India's most attractive and contiguous telecom geographies,

Including the circles of Andhra Pradesh & Delhi (inclusive of NCR),

Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh &

Chattisgarh, Maharashtra & Goa (excluding Mumbai), Rajasthan, UttarPradesh (W), Uttar Pradesh (E). With a footprint dominating the map of

India, Idea Cellular accesses over 60% of India's total telephony

potential. The company is now poised to launch its services in new circles

- namely Mumbai and Bihar.

Idea Cellular Ltd, however, does not believe only in increasing

geographic footprint - it also drills deep and successfully attempts to

provide excellent network coverage in all its circles of operations

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The brand Idea

It is almost impossible to disintegrate brand Idea from the corporate Idea.

Brand values are the company values and vise versa. Brand Vision: It

goes without saying that the brand vision of idea mirrors

The companys vision.

The brand mission statement is......

To be the most customer-focused mobile service brand,

Continuously innovating to help liberate our customers from the

shackles of time & space.

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IDEA - Brand Values

Innovate. Stimulate. Liberate....

It is these brand values, which have made us a formidable player in the

telecom industry. Innovations that stimulate the customer and liberate

him from the shackles of time and space are the core of our brand. This is

what we strive for. Nothing more, nothing less, nothing else.

IDEA - Brand Mission

The India footprint Idea

Anywhere connectivity bringing India closer.

The Technology Advantage Idea

Tomorrow's technology to enrich today.

The Customer Focus Idea

Make a single interaction a lasting relationship.

The Employee Focus Idea Nurture the roots that nurture our ideas.

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29

Product

Innovation

BrandPerception

BestService

Delivery

BestDistributionNetwork

InnovativeAffordableCaringHonest

Available whereveryou want

New Innovativechannels

Prepaid

EcotalkLifetime IdeaSuper PowerPostpaid

Good ByeLandlineDual IMSI

SolutionVASCellular JockeyGlobal SMSIdea Mail Positively surprise during all

customer interactions

Sum total of customer experience with

our service creates a perception

in the mind of Consumer


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What Idea Brand stands for?What Idea Brand stands for?

- Four planks of competitive edge- Four planks of competitive edge

What business are we in?What business are we in?

Infrastructure?

Total investments: Rs 67 bn

Number of Towns covered:~2000

Highway coverage: ~20,000km

Average monthly Calls on network: 1.25 bn

Average monthly SMS: 200 mn

Service?

Manpower for customer service: ~3,000

Daily relationship calls made: 65,000

Bills delivered every month: 1.3 mn

FMCG?

Total Consumers: 7.3 mn

Number of Retailers: 125 k

Average monthly gross adds: ~650,000

BPO? Call Center agents: ~1,000+

Daily Calls received at call center: 500 k

Financing?Short term debt: Rs 14 bn

Average monthly debt rollover: Rs 1 bn

Customer Service is the only long-term differentiator.

Sellers to buyers market

Whats out Whats in

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Product centered Market centered

Pure acquisition mode Profitable growth

Faster than competition Different than competition

Internal focus External focus

Operations driven Service driven

Innovative products Meet changing needs of customer

Economical products Unique value to customer

Expand distribution Differentiate service delivery

Either you change yourself, or customer will change to another

operator.

Focus Areas

Empowerment: Four Levels of Mgt. Push decisions to lowest level.

Partnership: Develop outsourcing partners, SLA management skills.

Measurement and Reporting: Leverage IT for BI & MIS.

Quality & Processes: Enterprise Process Mgt and Six Sigma.

Communication: Continuous Corporate Communications.

Innovation: Do it differently.

Technology: Stay ahead of curve.

Regulation: Be prepared to exploit opportunities.

Segmentation: Mass customization.

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ORGANIZATION CHART OF IDEA CELLULAR

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1.3 PROBLEMS OF THE ORGANISATION

When we talk about mobile service provider in Delhi, then we will find

that there are no. of player which are operating here. But every existing

player wants to have some comparative edge over others to sustain their

foot in the market. My study hovers around Airtels marketing strategy in

Delhi. The market trend is also one of the study. How have they sustained

in the market with so much competition. About the growth of the industry

and a study on the growth of the companies. Another part of the report

will also cover the future marketing strategies of the company to struggle

with forthcoming competition.

The study will discuss the consumer perception about company and its

services. There are different factors which can be examined to ascertain

the performance of the company in the minds of customer. These factors

will work as research problem for the project.

As we know that Airtel is leader in the market of mobile

telecommunication. But it is very important to introduce some or other

offer to the customer to be ion the market. In the present

telecommunication sector scenario, when Airtel is launching new tariff

plans every fortnight. It is quite difficult for other private players to keep

their customers happy. Even though it is very important to maintain thecurrent market scenario of he airtel, so this study will help the company

to exist in the market in current situation.

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1.4 COMPETITION INFORMATION

CUSTOMERS

Our customers are our most valued assets. We will strive to exceed their

expectations at all times by providing them with superior services that

embody value, innovation, quality and care.

Some of our Technology and Content Partners

Onmobile Asia Pacific Ltd

Cellebrum India Ltd

Siddhivinayak Astro Services Ltd.

Kodiak Ltd

Mauj

Net4nuts India Ltd

Yahoo

Rediff

India times

Mobile2win

Sify

NDTV

Roaming

Roamware.inc

Starhome

Bharti Telesoft

34
http://www.bhartitelesoft.com/http://www.starhome.com/http://www.roamware.com/http://www.ndtv.com/http://sify.com/http://www.mobile2win.com/http://www.rediff.com/http://in.yahoo.com/http://www.net4nuts.com/main/index.htmhttp://www.mauj.com/http://www.kodiaknetworks.com/http://www.ganeshaspeaks.com/index.jsphttp://www.onmobile.com/


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Marketing Communications

Lowe India Pvt Ltd

Insight Media Ltd

PUBLIC RELATIONS

Clea PR

NETWORK

Nokia

Ericsson

Siemens

BILLING

Atos Origin

AIRTEL

Telecom giant Bharti Airtel is the flagship company of Bharti

Enterprises. The Bharti Group, has a diverse

business portfolio and has created global brands in

the telecommunication sector. Bharti has recently

forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with

Wal-Mart for the cash & carry business. It has successfully launched an

international venture with EL Rothschild Group to export fresh agri

products exclusively to markets in Europe and USA and has launched

Bharti AXA Life Insurance Company Ltd under a joint venture with

AXA, world leader in financial protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, Indias largest integrated

and the first private telecom services provider with a footprint in all the

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http://www.atosorigin.com/http://www.siemens.com/http://www.ericsson.com/in/http://www.nokia.co.in/http://www.insight.com/site/index.cfmhttp://www.loweworldwide.com/


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23 telecom circles. Bharti Airtel since its inception has been at the

forefront of technology and has steered the course of the telecom sector in

the country with its world class products and services. The businesses at

Bharti Airtel have been structured into three individual strategic business

units (SBUs) - mobile services, broadband & telephone services (B&T)

& enterprise services. The mobile business provides mobile & fixed

wireless services using GSM technology across 23 telecom circles while

the B&T business offers broadband & telephone services in 94 cities. The

Enterprise services provide end-to-end telecom solutions to corporate

customers and national & international long distance services to carriers.

All these services are provided under the Airtel brand.

VODAFONE

If we look at the strategy of Vodafone, It is very typical of a company,

which is new in the region and trying to find its place.

The strategy of Vodafone seems to be to avoid any

head-on collision of interest with the market leaders

like Airtel and Idea. It has visibly a voided competing with big players.

Interestingly Vodafone seems to have an approach of operating in Nichemarkets, markets where both Airtel and Idea are not present. Vodafone is

focusing on towns, which do not have any network coverage of Idea and

Airtel and is trying to attract first time users of mobile phones. This is a

very effective strategy considering the its market strength.

CDMA PLAYER (RELIANCE & TATA INDICOM)

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Out of the two CDMA players in the Meerut Zone, Reliance has shown a

good growth in terms of customer base. Tata is still a new player and not

much was revealed by the organization in terms of what strategies they

are following.

As told to us by the Reliance Executive there is a strong focus on selling

landlines connections to the corporate and it is also coming up with a

broadband facility in the coming year. Reliance strategy is to increase

ARPU (Average revenue per user). It believes in getting value customers

who are loyal; it is not going for acquisitions in a big way like Airtel and

idea. Somewhere it is also following the strategy of Vodafone of

operating in the niche markets where they don't have to compete with

Airtel and Idea. One interesting we came to know was that Reliance had

no specific plans for corporate segment for mobile phones.

MTNL

Telecommunications in India is passing through a phenomenal growth

phase. MTNL, one of the largest Telecom Service

Providers in Mumbai, is poised to grow from strength to

strength. MTNL has unmatched technical expertise and

infrastructure and have presence in the entire metropolisto cater to your total communication needs and help you carry out your

social and business requirements in the most secure and affordable way.

Recently MTNL has slashed STD rates drastically. Now STD charges

from Landline phone varies from 80 paise to Rs. 1.20/ minute which is

lowest vis a vis private operators. STD call rate from Dolphin, Trump and

Garuda Mobile has been reduced to Rs. 1.30 / minute.

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MTNL broadband service under the brand name 'Triband' has become

extremely popular and MTNL is thankful to all Mumbaikars for the

overwhelming response. We have already crossed 3.1 Lakh broadband

customers. We are providing host of services on MTNL Next Generation

Landline using broadband Service. We are also providing VoIP based

Phone to Phone International calling service named Netfone, over

broadband line where we offer ISD calls to over 100 countries at Re 1/

min. In March 2008 MTNL had achieved another milestone with the

launch of its Video Phone Service (V Spyk) on the broadband platform.

To give better content offering to our broadband customers we have

launched a co-branded portal with AOL http://mtnl.aol.in. We also offer

online gaming services with the brand name Games On Demand (GOD).

TATA TELESERVICES

Tata Teleservices is part of the Rs. 120,000 Crore (US$ 29 billion) Tata

Group, that has over 87 companies, over 330,000

employees and more than 2.8 million shareholders.

The Group has a formidable presence across the

telecom value chain. Tata Teleservices Limitedspearheads the Tata Groups presence in the telecom sector. The Tata

Group had revenues of around US $62.5 bn in Financial Year 2007-08,

and includes over 90 companies, around 350,000 employees worldwide

and more than 3.2 million shareholders.

Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x

technology platform in India. It has embarked on a growth path since the

acquisition of Hughes Tele.com (India) Ltd [renamed Tata Teleservices

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(Maharashtra) Limited] by the Tata Group in 2002. It launched mobile

operations in January 2005 and today enjoys a pan-India presence

through existing operations in all of Indias 22 telecom Circles. The

company is also the market leader in the fixed wireless telephony market.

The companys network has been rated as the Least Congested in India

for last four consecutive quarters by the Telecom Regulatory Authority of

India through independent surveys.

Tata Teleservices Limited now also has a presence in the GSM space,

through its joint venture with NTT DOCOMO of Japan, and offers

differentiated products and services under the TATA DOCOMO brand

name. TATA DOCOMO arises out of the Tata Groups strategic alliance

with Japanese telecom major NTT DOCOMO in November 2008. TATA

DOCOMO has received a pan-India license to operate GSM telecom

servicesand has also been allotted spectrum in 18 telecom Circles and

will roll out its services shortly, starting with South India.

TATA DOCOMO marks a significant milestone in the Indian telecom

landscape, as it stands to redefine the very face of telecoms in India.

Tokyo-based NTT DOCOMO is one of the worlds leading mobile

operatorsin the Japanese market, the company is the clear market

leader, used by over 50 per cent of the countrys mobile phone users.Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra)

Ltd, serves over 36 million customers in more than 320,000 towns and

villages across the country, with a bouquet of telephony services

encompassing Mobile Services, Wireless Desktop Phones, Public Booth

Telephony and Wireline Services. Other services include value-added

services like Voice Portal, Roaming, Post-paid Internet Services, Three-

way Conferencing, Group Calling, Wi-Fi Internet, USB Modem, Data

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Cards, Calling Card Services and Enterprise Services. Some of the other

products launched by the company include Pre-paid Wireless Desktop

Phones, Public Phone Booths, Mobile Handsets and Voice & Data

Services such as BREW Games, Voice Portal, Picture Messaging,

Polyphonic Ring Tones, and Interactive Applications like news, cricket,

astrology, etc.

RELIANCE INFOCOMM

The Late Dhirubhai Ambani dreamt of a digital India an India where

the common man would have access to affordable means of

information and communication. Dhirubhai, who single-

handedly built Indias largest private sector company

virtually from scratch, had stated as early as 1999: Make the tools ofinformation and communication available to people at an affordable cost.

They will overcome the handicaps of illiteracy and lack of mobility.

It was with this belief in mind that Reliance Communications (formerly

Reliance Infocomm) started laying 60,000 route kilometres of a pan-India

fibre optic backbone. This backbone was commissioned on 28 December

2002, the auspicious occasion of Dhirubhais 70th birthday, though sadly

after his unexpected demise on 6 July 2002.

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Reliance Communications has a reliable, high-capacity, integrated (both

wireless and wireline) and convergent (voice, data and video) digital

network. It is capable of delivering a range of services spanning the entire

infocomm (information and communication) value chain, including

infrastructure and services for enterprises as well as individuals,

applications, and consulting.

Today, Reliance Communications is revolutionising the way India

communicates and networks, truly bringing about a new way of life.

AIRCEL

The Aircel group is a joint venture between Maxis Communications

Berhad of Malaysia and Sindya Securities & Investments Private

Limited, whose current shareholders are the Reddy family of Apollo

Hospitals Group of India, with Maxis Communications holding a

majority stake of 74%.

Aircel commenced operations in 1999 and became the leading mobile

operator in Tamil Nadu within 18 months. In December 2003, it launched

commercially in Chennai and quickly established itself as a market leader

a position it has held since.

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Aircel began its outward expansion in 2005 and met with unprecedented

success in the Eastern frontier circles. It emerged a market leader in

Assam and in the North Eastern provinces within 18 months of

operations. Till today, the company gained a foothold in 18 circles

including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar,

Jammu & Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala,

Andhra Pradesh, Karnataka, Delhi, UP(West), UP(East), Maharashtra &

Goa and Mumbai.

The Company has currently gained a momentum in the space of telecom

in India post the allocation of additional spectrum by the Department of

Telecom, Govt. of India for 13 new circles across India. These include

Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana,

Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan,

Punjab, UP (West) and UP (East).

Aircel has won many awards and recognitions. Voice and Data gaveAircel the highest rating for overall customer satisfaction and network

quality in 2006. Aircel emerged as the top mid-size utility company in

Businessworlds List of Best Mid-Size Companies in 2007.

Additionally, Tele.net recognised Aircel as the best regional operator in

2008.

With over 20 million happy customers in the country, Aircel the fast

growing telecom company in India has revved up plans to become a full-

fledged national operator by end of 2009.

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1.5 S.W.O.T ANALYSIS OF THE ORGANISATION

Strength:

Technology: Both the facets of technology i.e. backbone as well as

value added services have already been mentioned earlier. IDEA is

performing up to the mark in both areas and hence it is strength but in

the future it shall have to upgrade at even faster as more players

especially multinationals enter the fray.

Customer care: IDEA prides itself on being really close to its

customers, it is as explained earlier investing heavily in this area.

Market share: Since IDEA was a first cellular provider it has always

had the highest market share as far as customer base is concerned.

Brand & promotions: IDEA as a brand in more prevalent in the

customers mind than that of Vodafone. Its promotion has always been

of connectivity and a good live than promoting cellphones. It has a

strong brand image and always uses promotional strategies that are

used to communicate to a mass of people, one being hoardings at the

bus stops.

Weakness

Losing lead on technical expertise: Though IDEA has managed to

keep its nose ahead on basic technical aspects of telecommunication,

Vodafone backed by Hutchison & MTNL are bridging the gap.

Susceptible to a price war: A price war is a distinct possibility since

Orange may choose this as a strategy to Upstage IDEA. MTNL is

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also likely to make a strong bid to fight on the price front. Bharti can

ill-afford to wage a price war as it has already investment heavily on

the telecommunication infrastructure front.

Outer Delhi range inadequate: On and around the outskirts of Delhi

the voice and signal quality of IDEAs services tends to deteriorate.

This is a source of irritation and hence customer dissatisfaction.

Opportunities

Change in customer profile: It has been observed that the customer

profile has shifted from rich businessmen to youngsters, traders,

executives, working women etc. This is a segment, which is yet to be

tapped. The lower middle class is yet another segment to be targeted

as first time users

Technical manpower dearth at VODAFONE: An exodus of lower

level technical staff has weakened VODAFONEs maintenance and

technical support base. This could lead to a fall in quality of their

systems. It is a good time for IDEA to score over VODAFONE on this

front.

Growth of cell users: The past couple of years has seen a nearly

exponential growth in cell subscribers. This is because of the drop in

handset prices and tariff rates. These two prices are likely to go down

further in the future due to technological breakthroughs and

Government policies. Hence a huge customer base is to open up.

Threats

Vodafone is gaining technologically: Vodafone has now acquired

outsourcing for all its new projects. Motorola is the company, which

provides this outsourcing. This though expensive has greatly increased

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the efficiency and speed of Vodafones project. It is a big challenge

for IDEA; as its technological superiority could be challenged which

would seriously affect its status as market leader of cellular services.

Vodafone: deeper pockets!! Hutchison, the cellular giant has started

giving Vodafone technological and financial support. As a result it has

made it possible for Vodafone to expand and improve all its

operations be it on the services, promotion, advertising or marketing

fronts. This is a cause of worry for IDEA as Vodafone would be a

greater force to reckon with, given the advantages cited.

Third and Fourth players: MTNL is to be the third player in the

Delhi circle. It has already got most of the Infrastructure in place for

commencement of operations. They have put the infrastructure in

place by acquiring the expertise from LUCENT Technologies. MTNL

also has control of the landline systems, which exist. Another

advantage is the government backing that MTNL will always enjoy.

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CHAPTER-2

OBJECTIVES & METHODOLOGY

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2.1 SIGNIFICANCE

This Project Customer Relationship Management and Service Delivery

and quality in Idea Cellular Ltd (GSM) has been submitted in partial

fulfillment of the MBA course.

2.2 MANAGERIAL USEFULNESS OF THE STUDY

I have to work under time constraint due to my present job, so I have got

a less time to complete the project. The respondents were mostly college

going students; low understanding of knowledge was there. The

respondents were discussing the questions prior to reply thus their could

be biasness. Different promotional schemes offered by different

companies were not known by the respondents.

2.3 OBJECTIVES

To make a comparative study of IDEA CELLULUR Ltd. against its

competitors.

To make the corporate customer aware about the product portfolio

offered by IDEA CELLULAR Ltd.

To recommend respective improvement and particularly focus on

those problems, which need immediate attention.

To understand future trend of this industry from Customer

To understand the perception of consumer regarding other competitor

in the market and how they differentiate Idea with other competitor.

To understand about the customer thinking about the promotional

plans and tariffs of Idea.

To know about the future expectation from the company in the minds

of customer.

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2.4. SCOPE OF THE STUDY

The study was done to know about the present satisfaction level of Idea

prepaid customers. The sample technique adopted for the study of the

project is Stratified Simple Random Sampling. The reason for selecting

such a technique is that this technique matches with the data available to

me of NCR region

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2.5 METHODOLOGY

The perspective of the research is to understand customer relations and

service delivery and quality in telecom sector i.e. IDEA CELLULAR

LTD. (GSM) potential its future spare. The focus was concentrated in

Delhi. The study is based upon exploratory research.

To fulfill the objective certain information was gathered by.

Primary source.

Secondary source.

SECONDARY OBJECTIVES:

To understand the concept of customers.

To determine why is customer care important.

To understand different types of customers.

To analyze how to handle different customers.

To analyze the concept of Service Delivery and Quality.

To make a SWOT analysis so that internal strength and weakness can

be understood from point of view of cellular industry and also

understand the opportunities that can be earned and threats that affects

the business.

To understand the importance of Call Center.

To understand different stages of cellular industry i.e. Activation

Retention Revenue Enhancement and Communication.

To analyze Complaint Resolution Cell.

To understand the concept of Club Royale Customers.

To analyze mantras for Successful Customer Care.

To determine why customers leave the network.

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Research Approach

Observational.

Exploratory.

Research Instrument

Direct Interviews.

Personal Meetings.

Sample size: 80Research Area: Delhi NCR

Sample method: Marketing

As I have used primary data by using Direct Personal Investigation

Method. In this method the data is personally collected by investigator

from informants. Accordingly I had meetings with customers and give

resolutions for their problems. And secondary data has been collected

from various internet sites as mentioned in Bibliography.

Research Design

In this project use exploratory research design and for data collection fill-

up the questionnaires from the customer of mobile, survey of the market

and some information collect by interview of the users of the cellular at

Uttar Pradesh.

QUESTIONNAIRE DESIGN / FORMULATION

Research Instrument:

Questionnaire

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The questionnaire was formulated by keep in mind the following

Points: -

Giving the respondents clear comprehension of the question.

Inducing the respondents to co-operate.

Giving instructions as to what is wanted.

Identifying the needs to be known.

Questionnaires: - A questionnaire consists of a set of questions

presented to respondent for their answers. It can be Closed Ended of

Open Ended

Open Ended: - Allows respondents to answer in their own words & are

difficult to Interpret and Tabulate.

Close Ended: - Pre-specify all the possible answers & are easy to

Interpret and Tabulate.

TYPES OF QUESTIONS USED IN THIS PROJECT

Close ended Questions: To know the choice of the people regarding

various matters.

Dichotomous Questions

Which has only two answers Yes or No.

Multiple Choice Questions

Where respondent is offered more than two choices. This is done to

know the choice of the customers regarding different matters.

SAMPLE DESIGN

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The population considered for the purpose of the survey was advisors

of Reliance fresh Behaviour in Delhi and the National Capital Region

(NCR).

Time Frame

7-8 weeks, June & July 2009

Sampling Technique Used

Since the information required was not of a very technical nature and also

looking at the scope of the project and the extent of the target segment,

the sampling technique employed was Convenience Sampling. I

administered the questionnaires.

Data Collection:

Primary data

Secondary data

Data used for the research work was primary in nature.

Delimitation of research

Even though we tried our best to get the information as factual as

possible but still there are few limitations to this project

Its tough to find data on IDEA as company was not ready to share data

with us.

Time was a constraint.

IDEA were apprehensive in divulging the details about company and

its marketing strategies thus we tried to get the data from

advertisement agency articles and net.

The focus of study is local in nature as mobility was a problem.

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CHAPTER 3

CONCEPTUAL DISCUSSION

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OVERVIEW OF CUSTOMER RELATIONSHIP AND SERVICE

DELIVERY

"Attracting and nurturing talent has become the single most dominant

force in business." Idea cellular recognizes human resources as a

backbone for its long-term success. We aim to be the best employer,

attracting and retaining the best employees. Our people are our greatest

resource as they are our biggest differentiator. We therefore hire the best

professionals brimming with ideas and develop them for future leadership

positions. Idea is all about participation and involvement - seek

opportunities, give opinions and always speak your mind. And finally

make a difference within the company. We have focussed on conserving

the best aspects of our unique culture and on perpetuating what attracts

people to join, and remain, at Idea. Idea invites you to join a journey of

excellence.

CELLULAR MARKET IN TERMS OF CUSTOMERS AND

SERVICE DELIVERY

Customers

Where are they.everywhere!

Who are they..everyone!

When will they come...any minute!

Who is a Customer

Some one who buys regularly.

In USA and UK, a customer is GOD

In Japan, the customer is the KING.

And in India the customer is the BOSS!

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Why a Boss?

Because a boss can fire you when he is unhappy with you or your work.

The Modern Customer

He is innovative in nature and will always go for the best.

He is fussy, choosy, ambitious, proud, sophisticated and global in nature.

What is CARE?

Care means ---To have regard or liking for.

To look after.

Why is customer care important?

It costs 5 times more to acquire a new customer than to retain an

existing one.

One unhappy customer tells 10 other people.

64% of customers change suppliers because of poor service.Out of 100 customers only 6 will complaint.

Building the relationship: Key concepts.

Each interaction, However Miniscule, can begin or build a long

term Relationship.

The customer isnt always right, But the customer is always thecustomer!

The problem isn't the problem, But how you handle the problem.

Give customer A little something extra.

Must Remember

If you will not take care of your customers

some one else will

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Three dimension of Service

A attitudes.

S Skill.

K Knowledge.

ASK----attitudes skill and knowledge.

Customers are NOT

Just buyers.

Just numbers.

They are whole persons having individual differences.

Customers vary

In age.

In income.

Education levels.

Taste.

Different Customer Types

The Business Like Customer.

The customer is no nonsense type. His mail objective is to spend only as

much time with an executive as is strictly necessary.

The Knowledgeable Customer.

This customer is technically very aware of what he is buying. He knows

the right question to ask and it is very difficult to evade the Issue raised

by him.

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The friendly customer.

A very common type. Loves to talk-about the weather, about the Indian

hockey team, about politics In short, about everything except business.

The egoistic customer.

The man who feels nothing can happen without him. And that he is solely

responsible for everything that goes right.

The timid customer.

This type is probably the most difficult to handle. Because he does not

take decisions. He is usually insecure and needs a lot of reassurance. And

that is precisely we need to give him. Reassurance.

Other customer types.

Confused customer, frustrated customer

Handling Difficult Customers

Dont take it personally remember when a customer complains they

are unhappy with the product or your company not you.

Remember you are good at your job remind yourself of the skills you

have and why you are working there. Dont allow customers to make you

feel inadequate.

Write down their complaint or concern show the customer you arelistening by recording their problem and if you are on the phone, tell the

customer you are writing down all the details.

Ask a supervisor to join you and be part of the transaction if the

customer is becoming more difficult, invite a supervisor to join you and

the customer will notice you are treating them as important by seeking

additional help.

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Debrief the situation with someone else when the customer leaves

Sometimes you may need to talk to someone about your difficult

customer to debrief and get rid of any negative thoughts and emotions

you may have this is a very important step.

Learn stress management techniques this may help you stay calm if a

customer raises their voice or becomes emotional. By learning to breath

deeply, focus on the positives and also ensure your body doesnt carry

stress you will be able To handle these difficult customers easily.

Recognize and accept you will work with customers who have bad days

understand when you are working with the public some people take their

bad days out on you it is not personal.

Consider what you could do differently next time if the customer is

complaining about a company system or process, take some time to

review this and determine if this might need to be changed. Think aboutthe way you handled the customer and note anything you would do

differently next time.

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FIVE MUST OF GOOD CUSTOMER SERVICE

Have you ever seen one of the signs regarding customer services that

many places of business have hanging up? They say, "Rule Number 1:

The customer is always right," and below that, "Rule Number 2: Refer

back to rule number 1." Although that's a pointed oversimplification, the

statement makes a valid point, and that is the customer is the reason for

the business, whatever that business might be. The customer is what

keeps the business fueled and running. Without the customer, there would

be no business, and keeping customer happy and coming back is of the

utmost importance.

Though customer service truly can't be simplified into a one-rule

overview and the truth is that customers aren't always right, there are

some universal rules governing good customer service. Listen: When

dealing with a customer, the first rule is to listen to what they're saying

rather than anticipating what they want. Customers appreciate beingheard, and if you take the few moments to really, really listen to their

request, complaint or statements, you're increasing the odds that you'll be

able to help them in an efficient, direct manner. Acknowledge: People

appreciate being acknowledged. Whether they're waiting on a long, slow-

moving line or being put on hold, customers are more apt to remain

patient if they feel like they're not being ignored. For customers at theback of a long line, often a simple smile and statement of "I'll be with you

soon" will increase their patience manifold. For customers waiting on

hold, it's a good idea to pick up the phone every now and again, just to let

them know they haven't been forgotten about and that you'll be with them

as soon as it's possible.

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Be courteous and respectful: Even the most difficult customers often

respond to courtesy and respect, and maintaining that standard is

professional and should be adhered to at all costs.

Devote your full attention to the customer: There's nothing ruder than a

cashier that's chatting about her plans for the night with the cashier at the

next register while she's ringing up your purchases. In addition, paying

attention to something else while assisting a customer opens the door for

mistakes, particular when at the register or when working with money

and figures. Personal business is for your own time.

Know when to ask for help: There are times when you just don't have the

wherewithal to help the customer, and there are difficult customers who

just refuse to be reasonable. Don't hesitate to find a supervisor or manager

to help when you find yourself in a position that you can't resolve on your

own. That's what they're there for. There are many other Do's and Don'ts

in the world of customer service, but these are a great starting point forproviding service that will keep customers coming back to your business.

TOP TEN TIPS OF OUTSTANDING CUSTOMERS

Remember the 80:20 rule? You may not get everything perfectly right,

but getting most right will be much, much better than the majority of your

competition. TheseTop Ten Tips for Customer Service will get you well on the way.

Be Your Customer

Live the life of your customer and experience what they do. Stand in

line, call your call-centre, soak up feedback.

Give Memorable Service

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Make the life's mission of everyone (yes, everyone!) to be customer

focused even those seemingly out of direct line of fire.

Have Product Available

Generally, you can't sell it if you haven't got it. Work your systems

hard and focused to get product there on time.

Listen Hard to Complaints

Complaints are a wonderful gift - it is feedback of the highest order.

Enjoy them and learn fast.

Enable Your People

Enable and encourage your people to give an immediate and generous

customer response.

React Fast

Make sure that you and your people work with pace and immediacy

with customer issues.

Be Systems Focused

Ask, 'What would my customer think of this - would it give brilliant

service?' If not, reshape the system fast.

Be Curious

Encourage everyone in your team to overhear, be nosy, ask questions

and feed back information from your customers.

Research the Marketplace

Do more in your own business from what you experience as a

customer elsewhere. Encourage your people to do this too.

Have Fun: Have fun with your customers. It builds relationships.

Relationships are business.

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SDQ/IDEAS

Service Delivery &Quality-

An Overview

What is Customer Care?

Cellular business requires :

Customer Interaction as transactions between Customer & Organization.

It presents an opportunity to practice Customer Relationship

Management. Holds responsibility to efficiently service the customers at

each point.

GOAL

Holds responsibility to Convert all Customer Interaction Moments into

Moment of Delight for our customers by providing excellent services

and creating a strong positive Brand Image for Organization as an

institution rendering unparalleled World Class Service.

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Service Delivery and Quality

Creating Competitive edge by achieving:

Customer Delight At Moments of Truth interactions.

Trained & motivated employees.

Well defined processes.

Strong systems.

Advance technologies at the Call Center, Front Desk & Back-end

Operations.

DELIVERY AND QUALITYDELIVERY AND QUALITY

64

ServiceDelivery

andQuality(SDQ)

Retention

CustomerCare

FieldStaff

Training &Quality

Collections& Credit

IdeaRoyale

PnTProvisionin

CallCenter

CRC

DocumentCenter

External&

Internal

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SDQ-Field Staff

25 Customer Care Officers at 8 DO locations.

Specialized in Front-desk, Retention & Back-end operations.

Customer A/c activation & Service Change Mgmt.

Channel Operations review & Training.

Customer retention & CRE support.

Customer walk-in & on-line channel query support.

Stock Maintenance.

Adjustments & Waivers.

High User Relationship Building.

CALL CENTER SDQ-Call Center

101 Call-center officers.

Supervisors & 1 Manager.

Four teams with individual leaders.

5 Lac Plus customers: More than 4 Lac calls per month.

High degree of Standardization.

Internal Customer Unit (ICU) for Internal Customers.

Information Updates.

24*7 operational help line for any kind of Assistance.

Not only a complaint resolution cell. We are looking at call center as a

tool for building a long-term relationship with the customer.

A differentiating factor which could help us give the competitive

advantage.

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PRODUCT AND TECHNOLOGY (P N T)/ SDQ-Product and

Technology

8 Customer Care Officers.

Product Specialization: Pre-paid & Post-Paid.

System support: BSCS - Postpaid; INSS - Pre-paid.

Audits, bulk actions, Automation, DO-Backend support.

Special Activities requiring Expertise, Control & Cross-function

Coordination.

Centralized activities, viz.. RUG, EPN, No. management, Market

Move, Audits, DP5 uploading, etc.

Retention, Revenue Enhancement & Communication ( RRC)

Retention

Retaining the customer who is about to leave the network.

They Can be of two types:

1. Voluntary.

2. Involuntary.

Activities undertaken to retain customers.

Churn Projection.

Take steps to reduce churn.

Schemes to reduce churn.

Why Customers Leave?

1% die.

3% move away.

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4% are natural floaters.

5% move on recommendation.

9% finds somewhere economical.

10% are chronic complainers.

14% are dissatisfied.

68% go somewhere else because the people who serve them are

indifferent to their needs; they just dont care.9 out of 10 service

specs are defined not by the customer but by the service provider.

Average company has to spend six times more to attract new sale thanto get a sale from an existing client.

Revenue Enhancement

Bill message on every Bill cycle.

Up selling and cross selling by the out calling department.

Revenue enhancement through Value Added Services.

Communication

Information to customers through SMS and Mailer.

Communication To channels and Field for clarity.

15 days satisfaction call to the customer.

Complaint Resolution Cell (CRC)

Back end operation.

Coordinates with other departments.

Fulfilling customer requests.

Resolving complaints in coordination with other departments.

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Report generation from I - Care (an indigenously designed CRM

software)

Based upon the type of the call for that particular number action is

taken.

Post Paid

Activation/De-activation.

Service Changes.

Billing.

Delay/Wrong Payment postings.

Refunds.

Adjustments.

Pre Paid

Validity Issues.

Recharge Issues.

Top-ups.

Technical

Network Related.

Signals/Quality.

Auto roaming.

Others

VMS.

SMS.

Other Value Added Services.

Sources of Complaints

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Call Center/ICU.

Customers.

Channels.

Dos (District Offices).

Club Roy ale

One Customer Care officer.

Daily monitoring of Barring & Temporary Disconnection.

Regular analysis of Churn.

Management of Idea Care gift Scheme & its distribution.

Monthly evaluation of Customer base to review categorization.

Quality control of service delivery & Communication to Idea Care.

Cost-benefit analysis of loyalty Schemes.

CREDIT AND COLLECTIONS

Credit

Customer Profiling.

Customer categorization.

Limit enhancement and Down gradation.

Deposit Restructuring.

Deposit refund. Exposure Management.

Refund balance Closure.

Configuration Testing of new Products.

Pre Bill Testing.

Market Move adjustments.

BSCS v/s Switch reconciliation.

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IN v/s Switch reconciliation.

Our Idea of Customer

Technology Support to SDQ

Some areas where Technology has benefited

Call Center - IVR, CTI, CRM.

PnT - IN, Billing, DP5, ICFS, Pre Paid Upload Utilities & Mediation

front-ends.

CRC - Database support, Bulk SMS.

RRC - Huge System capabilities, Billing Reports.

Document Center - Barring/Unbarring utility, Hyperlinks, Pre Paid

Upload Utilities.

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Non-User

Competitors' Subscriber

Act ive

InactiveSubscriber

External Customer

Customer

Internal Customer

Prospective

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WAY TO DELIGHT CUSTOMERS

4 R Mantra for Successful Customer Care

Record.

Resolve.Rever.

Relationship.

and no end to servicing

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CHAPTER 4

DATA ANALYSIS

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customer relationship management and service delivery and quality in idea cellular ltd (gsm)(2)

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