Download - Idea ppt
By: ISHITA SHAHPGDM 2011-13
Summer Intern, IDEA CELLULAR LIMITEDEnrollment no:030301046
Pricing Strategy Adopted in 3G Technology Within Telecom Sector
Contents…
• Overview of Company.• Competition.• SWOT Analysis.• Objective of SIP.• Target.• Working Strategy.• Achievement.• Learning and Experience.
The Company: Introduction • The company was incorporated as Birla Communications
Limited on March 14, 1995 and commenced business on August 11, 1995.
• Registered office was in Mumbai, Maharashtra.• The company name was changed to Birla AT&T Communications
Limited on May 30, 1996 following the execution of a joint venture agreement dated December 5, 1995 between AT&T Corporation and Grasim Industries Limited.
• Changed name to Idea Cellular Limited and launched "Idea" brand name in 2002.
• It provides wireless and long distance voice and internet services to consumer and enterprise markets
• Idea became a pan-India operator in 2009
• The market positioning of Idea reflects the strength of its brand considering the fact that Idea added 11 out of its total 22 service areas in the past four years.
• Today, it is a pan-India player with commercial 2G operations in 22 service areas, and 3G in nine of these circles.
• Its subscriber base has grown multifold, from 7.37 million in March 2006 to 89.5 million in March 2011.
• Idea holds 16 per cent stake in Indus Towers, a joint venture with other telecom majors Bharti Airtel and Vodafone.
• Indus Towers is the world's largest tower company with over one lakh towers.
Vision: To be the most customer-focused mobile service brand, continuously innovating to help liberate our customers from the shackles of time & space.
Mission : We will delight our customers while meeting their individual communication needs time anywhere. We survive because of our customers.
Founding Fathers
Mr. G. D. Birla and Mr. Aditya Birla
Integrity
Passion
Commitment
Speed
Seamlessness
OVERVIEW OF 2G AND 3G• 2G NETWORK:
– Evolved from 1G– First system that used digital
signals– Improve speech quality,
coverage and security.– It introduced data services for
mobile,starting wth SMS text messages
• TECHNOLOGY USED IN 2G
• Divided into TDMA and CDMA based standards depending upon
multiplexing used.
– TDMA Standards: (a) GSM (Global System Mobile) (b) Interim Standard 136(IS-136) (c) Pacific Digital Cellular(PDC)
3g network
• 3rd generation mobile communication.
• It offers high speed data rate.
• Offers wide range of services.
• Increased bandwidth.
Road to 3g
where lies the difference???• 2G use different switching techniques for voice and data, where
3G uses single switching for any kind of data.
• 2G is circuit-switched, but 3G is packet-switched.
• GSM uses TDMA technology with narrowband 200Khz, 3G (WCDMA) use CDMA technology with broadband 5Mhz.
• 2G has low data rate, voice oriented services.•
3G has higher data rate and data oriented services3G enables Multiplexing of services with different quality
requirements on a single connection, e.g. speech, video and packet data.
GSM EVOLUTION FOR DATA ACCESS
Gsm,9.7kbps,1997
Gprs115kbps2000
Edge384kbps2003
Umts2mbps2003+
Wireless Access Evolution
Broadband New Services Efficiency
Broadband
Subscribers
Voice
Coverage Mobility
Voice Quality Portability Capacity
Broadband Network
Simplification Cost of
Ownership
Entry into 3G 3G
• Idea's 3G services start from chattisgarh, Gujarat and Hp & MP•
It Plans progressive pan-India rollout of 'Gold Standard' 3G services to ensure unmatched customer experience in 200 towns by April '11 and 4,000 towns by 2012. To enjoy Video Conferencing, Video on Demand, Mobile TV and high-speed Internet, Introduces Time based Billing plan for 3G services
• Idea has traditionally focused on growth from semi-urban heartlands of India and will continue to drive its 3G services from these industrial, agricultural and educational region.
Product Offerings
TIER 1- Metropolitan CircleCustomer Segmentation Description
Products pre-paid and post-paid mobile services
Services GPRS, voice and SMS based entertainment services, call-forwarding, call conferencing, regional, on-net, national and international roaming, GSM gateways, vehicle tracking; and Automatic Meter Reading
Channels Direct Outlets
Unique Competencies 6 SIGMA, Net Setter Data Cards & Blackberry Solution, largest customer base,, market leader in the Maharashtra, Strong distribution channels
The Customer:
TIER 2- Urban CircleCustomer Segmentation Description
Products pre-paid and post-paid mobile services
Services GPRS enabled information services like internet browsing, data cards and mobile email, call-forwarding, Ring Back Tones, background Music, voice and SMS chat, ringtones, horoscopes, expert advise and subscription services;
Channels Both Direct & Indirect
Unique Competencies 6 SIGMA, High quality network structure, Centralization of several applications.
TIER 3 – Rural Circle
Customer Segmentation Description
Products pre-paid and post-paid mobile services
Services Krishi Voucher,, Providing health care services
Channels Indirect
Unique Competencies usage of solar power for Base Transceiver Station (“BTS), frequency optimization techniques
Competition
MARKET SHARE
IDEA
RELIANCE
AIRTEL
TATA
VODAFONE
UNINORBSN
L
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
INDIAGUJARAT
INDIAGUJARAT
Price of net setter
PREPAID POSTPAID0
200
400
600
800
1000
1200
1400
1600
1800
IDEAMTSVODAFONEAIRTELRELIANCETATA PHOTON
Network of 3G in Gujarat
cities and towns
0
50
100
150
200
250
IDEATATA PHOTON
MTSRELIANCE
AIRTELVODAFONE
IDEATATA PHOTONMTSRELIANCEAIRTELVODAFONE
Strength• Reputation of Brand• Technology innovation used in
Idea• Advertising and promotion in
Idea• High quality network structure
Weakness
• No Broadband service• Low coverage in India• Market leader only in North
India• Direct to Home Service is not
available• Less market share in urban
market
Opportunities
• The Indian telecommunication industry is growing at faster rate
• Low penetration, more particularly in rural India.
• New 3G launch
Threats• Intense competition.• Customers loyalty is low• Increasing cost of promotion.• Increased network cost.
Project Title
Pricing Strategy Adopted in 3G Technology Within Telecom Sector
PRICING
• “Pricing strategy has been always more of the poker game than a science.”
• “Successful pricing is an art, not a science.”
Pricing Strategies
Penetration Pricing
Market Skimming
Influence of Elasticity
Influence of Elasticity
• Price Inelastic:• % change in Q < % change in P• e.g. a 5% increase in price would be met by a fall in sales of
something less than 5% • Revenue would rise• A 7% reduction in price would lead to a rise in sales of something
less than 7%• Revenue would fall• Price Elastic:• % change in quantity demanded > % change in price• e.g. A 4% rise in price would lead to sales falling by something more
than 4%• Revenue would fall• A 9% fall in price would lead to a rise in sales of something more
than 9%• Revenue would rise
POSTPAID:
MTS RELIANCE TATA IDEA VODAFONE AIRTEL
UNLIMITED ADVANCE RENTAL
USUAGE BASE PLAN
REGULAR USUAGE BASE PLAN
MONTHLY PLAN
REGULAR MY BEST PLAN
TIME BASE PLAN
UNLIMITED
ADVANCE SILVERPLAN CASH BACK OFFER
ADVANCE RENTAL
DAY-NIGHT PLANS GOLDEN PLAN
DEVICE FREE OFFER
PLATINUM PLAN
PREPAID:
MTS RELIANCE TATA IDEA VODAFONE AIRTEL
UNLIMITED MB PACKS MONTHLY REGULAR PLANS
USUSAGE BASE
MONTHLY
MONTHLY UNLIMITED
LONG VALIDITY
LONG VALIDITY
WEEKAND PLANS
POSTPAID TARIFF:
IDEA TATA MTS RELIANCE AIRTEL
1GB RS 200 - 549 450
2GB RS 349 - 649
3GB 599 - 699 670
5GB - 850 RS - 750 RS 750 RS
10GB 1250 1100 - 950 RS
15GB - 1400 1200 RS
PREPAID TARIFF
MTS RELIANCE IDEA AIRTEL VODAFONE
1GB 647 RS 345 RS 450 RS
2GB 595 RS
5GB 798 RS 800 RS 745 RS 750 RS 801 RS
10GB 999 RS 1000 RS 1245 RS 1051 RS
15GB 1298 RS 1300 RS
•To make a understanding about the CompanyIDEACELLULAR LTD.
•To make a understanding about the services which they provide
•To know about the customer base of the IDEACELLULAR.
Targets
• First week of our sip we were not given any such target, just we were told to sell the maximum dongles and prepare a competitive report on six major operators of telecom industry namely; AIRTEL, MTS, TATA, RELIANCE, VODAFONE.
• Third week we were given target of logging the five dongles.• We were also given 103 accounts individually of corporate
to be mapped.• Sixth week we were given a target to logged 4 dongles in ten
days and one idea smart phone.• We were also given a trainee to whom we have to trained
and also recruit one trainee from our source.
Strategy Employed
PROSPECT CALLS
SUSPECT CALLS
Corporate calling
Personal network
References
Achievements
• Was the first to achieve the highest loggings in the first week of sip and was awarded for the same.
• Finished the target of logging the five dongles in the second month.
• Had made more than 50 calls in the corporate• Mapped around 30 companies with all information
from turnover to no.of sim cards to data cards to number of employees etc.
Learning
• Basic Definition of sales• How to take decision• Team building, I to WE• Documentation, difference between the
company account and the individual account.• Hard core sales• Network building