Marketing Strategies and Services of MTS Mobile India (Sstl) 2011

REEMA PRAKASH RAJOLI15/01/2011

CONTENTS

VISSION. OBJECTIVE, METHODOLOGY. PRODUCT LINE. SEGEMENTATION. MARKETING MIX. TARGET MARGETING. POSITIONING STRATEGY. DIFFERENTIATIION STRATEGY, SWOT. MARKETING STRATEGY. RECOMMENDATIONS

HISTORY MTS was established in October 1993 by Moscow City Telephone Network (MGTS), T-Mobile Deutschland GmbH (T-Mobile), an affiliate of Deutsche Telekom AG, Siemens AG (Siemens) and several other shareholders. In late 1996, Sistema JSFC acquired a majority stake in MTS and has remained the primary owner ever since. MTS was the first company to launch GSM services in the Moscow region in 1994. In subsequent years, MTS has expanded rapidly in Russia largely through the acquisition of smaller independent players and became the leading national mobile operator. MTS initiated its international expansion in 2002 through the establishment of Mobile TeleSystems LLC, a joint venture with Beltelecom, the national fixed line operator in Belarus. In 2003, MTS continued to expand in the CIS by acquiring the leading operator UMC in Ukraine, the biggest CIS market outside of Russia. MTS entered Central Asia in 2004 through the acquisition of the leading mobile phone operator in Uzbekistan, Uzdunrobita. In June 2005, the Company acquired Barash Communications Technologies, Inc., the number one operator in Turkmenistan. In September 2007, MTS continued its international expansion through the acquisition of the leading mobile operator in Armenia, K-Telecom. In December 2008, MTS extended its brand outside the CIS borders. MTS and Shyam Telelink Limited, JSFC Sistema's telecommunications subsidiary in India, announced the agreement to allow Shyam Telelink to use MTS brand in India. The decision to introduce the brand to India is reflective of the brand’s success in the Company’s markets of operation since its launch in May 2006. In April 2008, MTS brand was recognized as one of the BRANDZ™ Top 100 Most Powerful Brands, a ranking published by the Financial Times and Millward Brown, a leading global market research and consulting firm. Today, Mobile TeleSystems is the largest mobile phone operator in Russia and the CIS. MTS is a multinational corporation of a new type, based in a high-growth emerging market and simultaneously entering other developing markets with a unified brand. Having been recognized internationally for corporate governance and transparency, MTS is not only a leading Russian blue-chip company, but a truly global organization.

VISION, MISION AND OBJECTIVE

Vision -Booming and prosperous India driven by hundreds of millions success Stories MTS will be the driving force for bringing New India into the fold of Opportunities. This drive for progress arises from our deep urge–to explore, to create, to achieve, to change, and to improve.

Mission -Enable New India’s continuous renewal- We believe the power of connectivity will provide New India with a new sense of identity and opportunity. We will provide this connectivity in a simple, effective and affordable manner

OBJECTIVE The Indian communications scenario has transformed into a multiplayer, multi product market with varied market size and segments. Within the basic phone service the value chain has split into domestic/local calls, long distance players, and international long distance players. Apart from having to cope with the change in structure and culture (government to corporate), MTS has to gear itself to meet competition in various segments – basic services, long distance(LD), International Long Distance (ILD), and Internet Service Provision(ISP).It has forayed into mobile service provision as well.

METHODOLOGY METHODOLOGY Primary data source Observation method, and Experiment

Secondary data source Internet Newspaper Magazines

PRODUCT LINE:

HIGH-SPEED INTERNET AND SMART MOBILE TELEPHONY

SEGEMENTATION:

DEMOGRAPHIC SEGEMENTATION:MTS has divided its market on the basis of the following variables.Age – 18yrs to 60yrsGender – male and female Income more than 60,000 per annum.

GEOGRAPHIC SEGEMENTATION:Country- IndiaState- all states of India

BEHAVIOURAL SEGEMENTATION:

Occasions- Birthday, Marriage Anniversary.Festivals- Rakshabandhan, Independence Day, Diwali

PSYCOLOGICAL SEGEMENTATION;

Lifestyle- based on people’s way of livingValues- according to the values of an individual.

4 P’S OF MARKETING:

1) PRODUCT-

MTS has launched its various products in the market like its connection kits, wireless USB Modem i.e. Mblaze and mobile handsets. Their product is strong because of their low tariffs and innovative schemes like get unlimited MTS to MTS minutes free for 999 days by just investing 999, and 1000000 minutes free on every new connection

MRP Rs. 49 Rs. 98 Rs. 148

Talktime Rs. 0 Rs. 50 Rs. 100

Validity 60 days 60 days 90 days

Call Charges (Rs./min)

Local

MTS Mobiles 1paisa/ 4 seconds

Other Mobiles & Landlines 1paisa/ 2 seconds

STD

All Mobiles and Landlines 1paise/ second# 1paisa/second on all local networks. • Standard rates applicable for all other call and sms

Get started with MTS

2) PRICE-

The company decided to offer ½ a paisa second call. Company has also priced its internet data card, as the MTS is providing two data cards one as they call it standard data card priced for Rs 1999 and other premium data card priced for Rs2299.

3) PLACE-

Place is also a major determinant for a product’s success or failure. MTS is now setting up in India and targeting the Indian youth by providing low tariff plans and various internet services. MTS has launched its various products in Major metro cities like Delhi, NCR, Kolkata, Mumbai and so other. Company has also targeted the rural area of the country like Bihar. Distribution part of MTS comprises of a chain of distribution i.e. Manufacturer-distributor-retailer-consumer. MTS connections are available in most of telecom retail shops in various major cities like Delhi and Mumbai

4) PROMOTION-

Promotion is the life of any company and same for the MTS, company is trying to grab the market by their promotion of 10, 00,000 minutes free to new subscribers of MTS and this strategy seems working for them, apart from this strategy company is planning to sign a celebrity to create an image in the mind of the target audience, company is also targeting the road side hoardings and advertisement in television and on radios.

TARGET MARKETING:More than 2 million subscribers by 2011 elite class up market, professionals, women and senior citizens by post-paid connection.PAN India targeting.High corporate clientsLow income group peopleYouth with youth club.

POSITIONING:

TAGLINE: ” BANDLO LIFE KA PLAN”

They have focused more on middle class people and young generation.

They are talking about exclusivity of the network and services they are offering to the customers.

DIFFERENTIATION

MTS India’s strategy calls for differentiation from the mainstream rather than face- to face competition with the rest of the market, which is dominated by large local players and a few global players. The company operates on CDMA-based technology that, in the case of the Indian telecom market, offers a number of notable end-user advantages compared to GSM, including better connectivity, coverage outside of urban areas, and overall reliability.

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SWOT ANALYSIS Strengths of the company

Experience in Russia: MTS is having a huge experience in this field of business as they have been showing their presence since 1993 and a great customer experience in Russia and in other countries. Experience of MTS will help them to plan their strategy for Indian market accordingly.

Pan India footprint: MTS is going to offer the most expansive roaming network. Letting you roam anywhere in India with its Pan-India presence, and trot across the globe with International Roaming spread in over the networks. The mobile services group provides CDMA mobile services across India in 11 telecom circles.

Low tariff plan: MTS is coming with one of cheapest tariffs in telecom sector by providing ½ paisa second call and in some region plan gets even cheaper ½ paisa 2 seconds. MTS is also launching a very different and attractive scheme i.e.100000 minute free talk time with every new connection.

Innovative schemes: Sistema Shyam Teleservices have launched a special offer in Rajasthan, wherein a MTS mobile customer can make unlimited outgoing calls to any MTS mobile within the state for 999 days just by paying 999 rupees,

Weaknesses of the company

New entrant in Indian Telecom market: As MTS is a new entrant in the Indian telecom sector, not having a good customer base, it will face a cut throat competition from its competitors.

Price competition from TATA docomo and AIRCELL: MTS will face competition from TATA Docomo and AIRCELL because they are also having some better scheme than MTS. Docomo is providing ½ paisa second to almost all the circles by just getting a voucher. And Aircel is also coming up with very attracting packages with low tariffs.

Least Brand Recall in Customer’s mind in India: As the company is a new entrant in the Indian cellular market customer will have a perception of bad network and not a good customer service.

Less Network coverage across telecom circles of India. As MTS is spreading its network coverage very fastly amongst all the circles where they operate but still it is facing a bad network coverage problem.

Opportunities for the company

Latest technology and low cost advantage: MTS can enjoy its latest technology and low cost advantage. The number of cities, towns and villages it has covered already works to its advantage as putting more base stations for cellular coverage in these areas comes with negligible marginal cost. Besides such cost advantages, it has also other cost advantages for the latest cellular technology.

Huge market: The cellular telephony market is presently expanding at a phenomenal / whopping __ rate every year and there is still vast scope for MTS to enter /expand in this market. Besides there is a vast rural segment where the cellular services have not made much headway and many customers are looking towards MTS for providing the service to them. With its presence even in the remotest areas, MTS can gain a big market share in this segment.

Other opportunities: India is the second-largest telecommunications market in terms of sheer numbers of potential subscribers, and one of the fastest growing in the world. An expanding Indian economy with increased focus on the services sector. Population mix moving favourably towards a younger age profile. Urbanization with increasing incomes, MTS can cover all the 22 telecom circles of India through its adequate strategies n Investment in network Coverage. Creating Customer Awareness of its products through advertising.

Threats for the company

Competition from other cellular’s: It is time for MTS to improve/expand its cellular services. Fierce and cut-throat competition is already in place with the markets ever abuzz with several tariff reductions an announcement of attractive packages, trying to grab most of the ’mind share of the king - the consumer’, whose benefits are increasing with passing of everyday. If MTS will not be innovative and agile, its cellular service will be a flop. It needs to be proactive with attractive packaging, pricing and marketing policies lest its presence in the market be treated with disdain by the private cellular companies. The launch of WLL services by Reliance communication has aggravated the situation.

Other threats A new entrant in the market.

Less product awareness in the market.

Brand perception.

MARKETING STRATEGY

The brand was developed to attract customers in variety of cultural, socio-geographic and income segments with a consistent message of quality and leadership.

To facilitate the further growth and recognition of the brand, MTS recently adopted new brand standards to communicate the brand consistently in all massaging and reinforce its perception as a strong trustworthy and quality focused company.

MTS developed its products to meet the customers‟ needs beyond the cultural, socio-geographic and income constraints.

MTS studied the current market scenario in Telecom market and designed its strategies and product development according to the prevalent conditions in the market.

MTS created its brand awareness among customers by large scale promotions in forms of advertisements on TV‟s, newspapers and hoardings across cities.

MTS is trying to create a good image in customers mind as a strong, trustworthy and quality focused company.

MTS broke through the fierce competition in telecom market as it says “Badlo life ka plan”.

To break through heavy competition in telecom market by launching its cheap calling plans and affordable internet connection services.

MTS is adopting various effective promotional schemes like Advertising on TV‟s, Newspapers and hoardings on Metro stations and highways to attract customer’s attention.

RECOMMENDATIONS:

MTS should do its product promotion on a very large to make people aware of MTS existence in Indian Telecom Market.

Company should offer such a strong customer service that when a customer uses should be able realize the service is going to be the best, as such there is no such services being provided by the company.

Company should ask for suggestion from people by various promotion strategy‟s, they can do one thing that when people call to costumer care they should add another feature of press this button to provide suggestion.

Company should do its promotion on a large scale to show their presence in the market as done by Vodafone.