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22047879 Project on Sales Promotion of Virgin Mobile at Mobile Store in Allahabad

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A Project Report On “Sales and Promotion of Virgin Mobile in Mobile Store Allahabad ” Master of Business Administration (Marketing)

Submitted in partial fulfillment of the requirements for award of Master of Business Administration of Tilak Maharashtra University, Pune Submitted by Kumar Paramtap PRN:072080166

of Institute of Business Studies & Research, Pune Tilak Maharastra University Gultekdi, Pune 411037
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Acknowledgement

My Special Thanks and gratitude to Mr. Vinay Kumar Singh(S.M) , of Virgin Mobile for his generosity, cooperation and superb guidance that helped me in completion of my project report. I am also thankful to Mr.Inderpal Singh, (Director) IBSAR, PUNE and to my Internal Gudie, Mr. Sumit Roy, for their encouragement and motivation which was a great source of inspiration. I am extremely grateful to Mr.Dhermendra (Operation. Manager) and the entire staff of Mobile Store for their cooperation and generosity. Their experience helped me a lot in doing my project.

Kumar Paramtap MBA III (Marketing) IBSAR

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TABLE OF CONTENT SERIAL No. TITLE CHAPTER-1 1.1 RATIONAL STUDY CHAPTER-2 2.1 2.2 2.3 PROJECT TITLE OBJECTIVE OF STUDY SCOPE OF THE STUDY CHAPTER-3 3 PROFILE OF THE COMPANY CHAPTER-4 4. REVIEW OF LITERATURE CHAPTER-5 5. RESEARCH METHODOLOGY CHAPTER-6 6. DATA ANALYSIS & INTERPRETATION CHAPTER-7 7. FINDINGS CHAPTER-8 8. LIMITATIONS CHAPTER-9 9. CONCLUSION& RECOMMENDATIONS 10 11 APPENDIX BIBLIOGRAPHY 48-50 52 47 45 43 32-41 25-31 18-24 5-17 4 4 4 2 PAGE No.

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LIST OF TABLES

TABLE 6.1 TABLE 6.2 TABLE 6.3 TABLE 6.4

PROXIMITY OF SERVICES CENTER USER FRIENDLINESS OF DELIVERY POINT SERVICE TIME AVAILABILITY OF CUSTOMER CARE

36 37 38 39

TABLE 6.5 QUALITY OF SERVICE BY CUSTOMER CARE 40

TABLE 6.6 TABLE 6.7

NETWORK QUALITY

41 42

OVERALL SATISFACTION LEVEL

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LIST OF FIGURES FIGURE NO 6.1 FIGURE NO 6.2 FIGURE NO 6.3 FIGURE NO 6.4 PROXIMITY OF SERVICES CENTER USER FRIENDLINESS OF DELIVERY POINT SERVICE TIME AVAILABILITY OF CUSTOMER CARE 36 37 38 39

FIGURE NO 6.5 QUALITY OF SERVICE BY CUSTOMER CARE 40

FIGURE NO 6.6 FIGURE NO 6.7

NETWORK QUALITY

41 42

OVERALL SATISFACTION LEVEL

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CHAPTER -1

Rationale for the Study

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In today‟s intensely competitive, rapidly changing and highly complex environment characterize by diminishing customer loyalty, the need to be market –focused and customer centric is more critical than any other time in past. It is highly imperative for every organization to retain and use valuable information about their customer to enhance their business strategies and product and service offerings. Today, the key focus area of much organization is identification of a link between customer satisfaction and performance. However, satisfaction as the confirmation of expectation has started to be conceptualizing almost as a threshold for customers. The delivery of satisfaction is the minimum the customer expects. This project is totally focusing on the consumer preferences towards different sales promotion techniques means which sales promotion technique is mostly preferred by the customer in the city of Allahabad (Uttar Pradesh). As the sales promotion techniques are used for the marketing of the product so the research has done in the area of marketing. Today every firm is facing the situation of cut throat competition. So it becomes very important for every firm to promote its product otherwise it cannot survive in the market. These techniques are used in the marketing of product in the last stage which is called retailing. It is the stage from which the product directly goes in the hand of customer and today India is standing on the threshold of retail revolution and witnessing a great change in its retail landscape i.e. from unorganized retailing to organized retailing. Retail is growing with an annual rate of 40%. Its contribution towards GDP is 11% and towards employment is 8%. So after agriculture retailing is one of the biggest sources of employment in the country and is one of the largest industries in India. Although retail industry has existed in our country for centuries but it is only the recent past that it is witnessing such a tremendous growth. In Allahabad Mobile Store has created its image in a very short period Mobile store is best outlet for Mobiles and its accessories. It is attracting the customers with its good services. Most of the customer satisfied by Mobile store services and facilities.

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CHAPTER -2

Objective of the Study

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Project Title:
“ Sales and Promotion of Virgin Mobile in mobile Store in Allahabad”

Objective of project:
Primary objective:  To study the customer awareness about Virgin Mobile in Mobile Store.  To enhance the sale of Virgin Mobile in Mobile Store.  To know the reason for the loss of inventory. Secondary objectives  To analyze the customer buying behavior.  To find out the satisfaction level of the Virgin mobile customers at Mobile Store.  To study the effect of event and promotion.  To make various suggestion on the improvement of Virgin Mobile in Mobile Store.

Scopes:
 Study is restricted to various parts of Allahabad which include: LGF, Atlantis Mall Allahabad Purana Katra.  Time frame-there is limited time of two months June to August 2009.  Analyze the consumer buying behavior at Mobile Store.

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CHAPTER -3

Profile of the Company

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About The Mobile Store: Mr. Rajiv Agarwal, CEO and Director, The Mobile Store Limited, heads India's first countrywide chain of telecom retail outlets. "The Mobile Store" is an Essar Group venture, set to introduce a pan-Indian

network of retail telecom outlets. The Mobile Store offers a world class shopping

environment, with state of the art technology. The Mobile Store format is a one stop mobile solution shop that provides, multi brand handsets, accessories, connections, repairs, VAS etc all under one roof.The Mobile Store currently has more than 1050 outlets and the vision is t o have a network of 2500 stores by 2010 across 650 cities, thus covering virtually every major town in every state across India. The Mobile Store outlets are in three formats: Large - 1000-1500 square feet, Medium800-1000 square feet and Corner-150-200 square feet, with smaller formats located primarily in large malls. Key thrust areas for the retail format are: Comprehensive Product Range,

Knowledgeable Store Staff & Interactive Environment, Competitive Prices and Handset Repairs. The Mobile Store caters to the Indian consumer's choice of the widest and most comprehensive range of mobile phones with special offers from all the key brands available across the globe. The Mobile Store offers complete telecom solutions right from handset purchase to the choice of service operator and miscellaneous services like monthly bill collections etc., the stores also offer connections (pre paid and post paid), accessories and VAS including the latest ring tones, wallpapers and gaming and prompt after sales service, available not only in the city of purchase but in all The MobileStore outlets across the country.
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The

Mobile

Store

has

undertaken

an

extensive training program to equip all its employees with in-depth knowledge of the products and brands available at the store, thereby allowing them to provide the right kind of guidance to the customer. The Mobile Store has categorized its mobile device offerings into consumer segments keeping in mind the profiles and needs of different consumers. The unique segments available in The Mobile Store The Mobile Store are: Business - PDA & Smart phones, Emails, data transfer etc., Lifestyle Fashion phones, Look and elegance, Fun - Multimedia & music, camera, games, wacky ring tones and wallpapers, Value for Money - Special offers, discounts and budget phones. All major handset brands like Nokia, Sony Ericsson, LG, Samsung, Motorola, Fly, Sagem, HP, I Mate, Dopod, HTC and Blackberry are available at the store. The Mobile Store has also tied up with all leading operators including Airtel, Vodafone, BPL, Idea, MTNL/BSNL and Reliance, Tata Indicom. All major handset brands like Nokia, Sony Ericsson, LG, Samsung, Motorola, Fly,

Sagem, HP, I mate, Dopod, HTC and Blackberry are available at the store. The Mobile Store has also tied up with all leading operators including Airtel, Vodafone, BPL, Idea, MTNL/BSNL and Reliance,

TataIndicom.

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INTRODUCTION-WHY VIRGIN MOBILE?
In Indian mobile market, Virgin mobile is a unique player based on its business model and strategy. It is the only service provider which does not hold any bandwidth and mobile setup infrastructure but uses Tata Teleservices spectrum and is penetrating market totally on its branding and marketing strategy. Creat ing a niche brand and promoting it to specific customer segment with proper marketing has been the key success factor for virgin mobile across the globe. So, from marketing and customer understanding point of view, this is a very unique company to study.

U NDERSTANDING VIRGIN’S BUSINESS MODEL:
Virgin has promoted itself as the brand for young India, keeping the Indian youth as its target customer segment. The idea behind targeting this segment can be found inherited in virgin‟s business model. The different marketing perspectives are explained in fig 1. The salient features of Virgin‟s business model from customer perspective are: 1) With intensive competition and reducing voice tariffs, the profit margins for voice service are decreasing day by day. So, the future profit strategy is maximizing profit margins through data services and it is youth segment which provides maximum data service revenues. 2) Future projection of increasing young and working population of India as 65% of overall population by 2020. 3) Increased use of data services in future due to technological advancements.
So, in mobile sector where all other players are trying to provide similar service to different customer segments, virgin is targeting specific segment with tailor made plans keeping its long term goals in mind.

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NETWORK Tata Teleservices Bluedart

DISTRIBUTION CHANNEL

Online selling

Retail Access

Samsung

VIRGIN MOBILE BRAND

PRODUCT DESIGN Paid incoming calls 50 paisa STD

COMMUNICATING VALUE PROPOSITION Young & Vibrant website

Youth centric advertisements

VBYTES

Value added services

Fig 1: Creating Virgin brand through various market channels

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COMMUNICATING THE VIRGIN BRAND:
Virgin mobile has communicated itself as the youth oriented brand of India through various communication channels. They are: a) “Think Hat ke” advertisement campaign targeting youth b) Red and vibrant website look with youth focused language (Fig 2) c) Tailor made plans for young segment d) Getting paid for incoming calls: a source of recharge option for youth

Fig 2. Virgin Mobile website depicting youth flavor

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TARGET MARKET :
The Virgin Mobile Brand, targets Indian youth aged between 14 and 25 years. There are 215 million people in this age group. Out of this, 70 million own a mobile phone and this segment is expected to add another 50 million new subscribers in the next three years. Though young subscribers constitute only 30 percent of the total mobile subscribers, they contribute more than 50 percent of the revenues of telecom industry. By 2010 this group is expected to contribute 60-70 percent of total revenues. The distinct mobile phone usage habits of the young users provide a huge advantage to Virgin Mobile. They make more and longer out-bound voice calls, which means huge billing potential for service providers. The usage of SMS, data services in the form of mobile internet, mobile shopping and other value added services like ring tones, caller tunes, wallpapers, etc are very high in this group which again provides a huge opportunity to be tapped. Moreover young users have a short handset up gradation cycle-under 12 months as compared to two years for people above 25 years of age.

CUSTOMER ACQUISITION AND RETENTION STRATEGIES:
The company knows that they are trying to position themselves into a very establish ed and competitive market. They understand the fact that they cannot start making profit from day one neither they have plans for it; they anticipate to achieve a subscriber base of 5 million in next three years and will make profit afterwards they will be able to break even in three year or so. According to the patron, Sir Richard “We want to deliver a more tailored and relevant offering for a single segment.” Company targets only 10% of the above mentioned segment and have plans to acquire and retain them by various innovative propositions, some of them are1) Providing services which were not offered so far a) Get paid for incoming calls.

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b) 50 paisa for all calls across the country. c) A brand truly meant for the young India which is reflected at each & every touch point. d) Extensive data service offers in the form of vbytes. e) Excellent value added plans. f) Go online facility for enquiry, purchasing phone, recharging and everything. g) One touch VAS access from every virgin mobile. 2) Providing services which others are not providing meticulously a) Easy to change the handset from a wide range of handset providing at very reasonable prices.

b) Boring customer care services telling you are in queue. c) One customer care officer dedicated for all queries of one customer leading to transparency. d) No jammed or bad network coverage. e) Tailor made customized plans without any hidden charges. f) No monthly bills.

VALUE CREATION THROUGH PRODUCT DESIGN:
Various steps that Virgin is taking to add value to the customer are on price, quality, technology and social front. Company is providing the best prices in whichever plan you go, quality of signals is not only comparable but better than most of the service providers, on technology front it is the first in India to go for one-touch VAS access from every Virgin Mobile.

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MARKETING MIX:
The marketing mix is the combination of marketing activities that an organisation in so as to best meet the needs of its targeted market. Product: Virgin Mobile offers six RUIM enabled handsets with colour screen, FM radio and include one touch access for V bytes- Virgin Mobile‟s VAS portal. Price : The handsets are priced in the range of Rs2000-5000.The call tariff is very nominal which is 50p per call both local and STD subject to terms and conditions. Place: The focus of Virgin Mobile on customer acquisition has so far been in the top 60 cities of India and is set to extend to more cities. The product is available across a host of modern retail outlets The Mobile Store, Hotspot, RPG Cellucom, Croma etc. Promotion: Virgin Mobile entered the Indian market in grand style. The company surprised the readers of a leading Indian daily when all the headlines on the front page were in the colour red. Virgin Mobile has used a very vibrant colour to relate itself with the targeted market. Apart from traditional media, internet and outdoor youth centric advertising has been used wisely to attract the targeted audience.

DISTRIBUTION CHANNEL:
Virgin mobile makes its products available to the customer by both retail stores and online distribution. Selective Distribution: Virgin mobile has selected some retail outlets to distribute its products. It does not follow the strategy of intensive and exclusive distribution. The strategy of selec tive distribution helps the company gain optimum market coverage and more control but at a lesser cost than intensive distribution.

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Virgin Mobile launched a new mobile handset v Billing on 7 July 2008. V Billing is available across 15,000 outlets nationally and over 1000 modern retail outlets including The Mobile Store, Univercell, Croma, Convergem, Big C, Vishal Mega Mart, Vijay Sales and Sangeetha to name a few. Apart from this, the handset will also be ava ilable in 34 kiosks in high traffic malls across the country. Online Distribution: Virgin Mobile India has announced that customers can now buy Virgin Mobile branded products and services online. They just need to select the handset, plan and number of their choice by filling an online form. Post the payment transaction, handsets will be delivered to the customer within 24 - 48 hours and the requisite documents for proof of identity will be collected in person. Customers taking advantage of online shoppi ng will also be offered additional talk time, extra messages as well as other freebies.

Disintermediation and re-aggregation: distribution are stated as follows:   

The different features of the online

Intermediary becomes redundant as customer buys directly from the firm using web technology. Customization becomes easier and feasible which adds to the customer value. Re-aggregation occurs in the sense that companies today encourage customers to lodge their complaints or send their queries on the net. These a re then routed to another site where they are dealt with immediately in a seamless manner. So it helps in improving the overall efficiency of the channel.

For the delivery of the ordered products Virgin Mobile has tied up with Blue Dart.

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COMPETITION:
Virgin Mobile has entered into a very competitive industry where Airtel, Vodafone and Reliance are the dominant players. Virgin Mobile faces stiff competition from Reliance CDMA phones. Virgin Mobile have taken a „hatke‟ route and launched the brand in the youth segment. The tie up with Tata Teleservices enables it to fight competition as the network quality of Tata Teleservices was ranked first by DOT. The company is spending huge chunks of money to promote their VAS services and it would be interesting to watch out what Virgin Mobile plans to offer.

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CHAPTER -4

REVIEW OF LITERATURE

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Marketing is a societal process which discerns consumers' wants, focusing on a product or service to fulfil those wants, attempting to move the consumers toward the products or services offered. Marketing is fundamental to any businesses gro wth. The marketing teams (marketers) are tasked to create consumer awareness of the products or services through marketing techniques. Unless it pays due attention to its products and services and consumers' techniques. Unless it pays due attention to its products and services and consumers' techniques. Unless it pays due attention to its products and services and consumers' techniques. Unless it pays due attention to its products and services and consumers' selling. It is also concerned with anticipating the customers' future needs and wants, which are often discovered through market research. Essentially, marketing is the process of creating or directing an organization to be successful in selling a product or service that people not only desire, but are willing to buy. Therefore good marketing must be able to create a "proposition" or set of benefits for the end customer that delivers value through products or services. A market-focused, or customer-focused, organization first determines what its potential customers desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product or service because they have a need, or because it provides a perceived benefit. Two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base

management). Once a marketer has converted the prospective buyer, base management marketing takes over. The process for base management shifts the marketer to building a relationship, nurturing the links, enhancing the benefits that sold the buyer in the first place, and improving the product/service continuously to protect the business from competitive encroachments.

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For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants and desires of the consumers or Shoppers in the target market . Trying to convince a market segment to buy something they don't want is extremely expensive and seldom successful. Marketers depend on insights from marketing research , both formal and informal, to determine what consumers want and what they are willing to pay for. Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process. The offer is also an important addition to the 4P's theory. Within most organizations, the activities encompassed by the marketing function are led by a Vice President or Director of Marketing. A growing number of organization s, especially large US companies, have a Chief Marketing Officer position, reporting to the Chief Executive Officer. The American Marketing Association (AMA) states, "Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.".[1] Marketing methods are informed by many of the social sciences , particularly psychology, sociology , and economics. Anthropology is also a small, but growing influence. Market research underpins these activities. Through advertising , it is also related to many of the creative arts. Marketing is a wide and heavily interconnected subject with extensive publications. It is also an area of activity infamous f or reinventing itself and its vocabulary according to the times and the culture.

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Two levels of marketing-

Strategic marketing attempts to determine how an organization competes against its competitors in a market place. In particular, it aims at gen erating a competitive advantage relative to its competitors. Operational marketing executes marketing functions to attract and keep customers and to maximize the value derived for them, as well as to satisfy the customer with prompt services and meeting the customer expectations. Operational Marketing includes the determination of the marketing mix (4 Ps). Four Ps- In the early 1960's, Professor Neil Borden at Harvard Business School identified a
number of company performance actions that can influence the consumer decision to purchase goods or services. Borden suggested that all those actions of the company represe nted a “Marketing Mix”. Professor E. Jerome McCarthy, also at the Harvard Business School in the early 1960s, suggested that the Marketing Mix contained 4 elements: product, price, place and promotion.

In popular usage, "marketing" is the promotion of products, especially advertising and branding. However, in professional usage the term has a wider meaning which recognizes that marketing is customer-centered. Products are often developed to meet the desires of groups of customers or even, in some cases, for specific customers. E. Jerome McCarthy divided marketing into four general sets of activities. His typology has become so universally recognized that his four activity sets, the Four Ps, have passed into the language.

The four Ps are: Product : The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support.
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Pricing : This refers to the process of setting a price for a product, including discounts. The price need not be monetary - it can simply be what is exchanged for the product or services, e.g. time, energy, psychology or attention.

Promotion : This includes advertising, sales promotion, publicity, and personal selling, branding and refers to the various methods of promoting the product, brand, or company. Placement (or distribution): refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been called Place , referring to the channel by which a product or services is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. These four elements are often referred to as the marketing mix, [1] which a marketer can use to craft a marketing plan. The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Industrial or B2B marketing must account for the long term contractual agreements that are typical in supply chain transactions. Relationship marketing attempts to do this by looking at marketing from a long term relationship perspective rather than individual transactions. As a counter to this, Morgan, in Riding the Waves of Change (Jossey-Bass, 1988), suggests that one of the greatest limitations of the 4 Ps approach "is that it unconsciously emphasizes the inside – out view (looking from the company outwards), whereas the essence of marketing should be the outside – in approach". Nevertheless, the 4 Ps offer a memorable and workable guide to the major categories of marketing activity, as well as a framework within which these can be used.

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Sales promotion - Promotion involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. Sales promotion is an important component of a company's marketing communication strategy along with advertising, public relations, and personal selling. At its core, sales promotion is a marketing activity that adds to the basic value proposition behind a product (i.e., getting more for less) for a limited time in order to stimulate consumer purchasing, selling effectiveness, or the effort of the sales force. As this definition indicates, sales promotion may be directed either at end consumers or at selling intermediaries such as retailers or sales crews. Sales promotion stems from the premise that any brand or serv ice has an established perceived price or value, the "regular" price or some other reference value. Sales promotion is believed to change this accepted price-value relationship by increasing the value and/or lowering the price. Familiar examples of consume r sales promotion tools include contests and sweepstakes, branded give-away merchandise, bonus-size packaging, limited-time discounts, rebates, coupons, free trials, demonstrations, and point-accumulation systems. Three issues clarify sales promotion. First, sales promotion ranks in importance with advertising and requires similar care in planning and strategy development. Second, three audiences can be targeted by sales promotion: consumers, resellers, and the sales force. And third, sales promotion as a competitive weapon provides an extra incentive for the target audience to purchase or support one brand over another. This last factor distinguishes sales promotion from other promotional mix tactics. For example, unplanned purchases may be directly related to one or more sales promotion offers. In order to understand the basic role and function of sales promotion, one must differentiate between sales promotion and other components of the marketing mix. Sales promotion usually operates on a short timeline, uses a more rational appeal, returns a tangible or real value, fosters an immediate sale, and contributes highly to profitability. The idea of contribution to profitability may be confusing. It is simply the ratio between what is spent on a promotional mix compared to the direct profitability
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generated by that expenditure. A few exceptions to the above characteristics do exist. For example, a sweepstakes might use a very emotional appeal, while a business -tobusiness ad may be very rational. Promotion is generally sub-divided in the textbooks into two parts:


Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet) in which the advertiser pays an advertising agency to place the ad



Below the line promotion: All other promotion. Much of this is intended to be subtle enough that the consumer is unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows

Marketing Communication-

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Reaches large, geographically dispersed audiences, often with high frequency; Low cost per exposure, though overall costs are high; Consumers perceive advertised goods as more legitimate; Dramatizes company/brand; Builds brand image; may stimulate short-term sales; Impersonal, one-way communication; Expensive .

Most effective tool for building buyers‟ preferences, convictions, and actions; Personal interaction allows for feedback and adjustments; Relationship oriented; Buyers are more attentive; Sales force represents a long-term commitment; Most expensive of the promotional tools

May be targeted at the trade or ultimate consumer; Makes use of a variety of formats: premiums, coupons, contests, etc.; Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales; Stimulates quick response; Short-lived; Not effective at building long-term brand preferences

Highly credible; Very believable; Many forms: news stories, news features, events and sponsorships, etc.; Reaches many prospects missed via other forms of promotion; Dramatizes company or product; Often the most under used element in the promotional mix; Relatively inexpensive (certainly not 'free' as many people think--there are costs involved)

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Many

forms:

Telephone

marketing,

direct

mail,

online

marketing, etc.; Four distinctive characteristics: Non-public, Immediate, Customized, Interactive ; Well-suited to highly-targeted marketing efforts. Why Telecom Industry? Indian Telecom industry is one of the fastest growing telecom markets in the world. In telecom industry, service providers are the main drivers; whereas equipment manufacturers are witnessing growth and decline in successive quarters as sales is dependent on order undertaken by the companies. Today the Indian telecommunications network with over 452.91 million(as on May 09) subscribers is second largest network in the world after China. India is also the fastest growing telecom market in the world with an addition of 10 - 12 million monthly subscribers. The tele-density of the Country has increased from 18% in March 2006 to 38.88% in May 2009, showing a stupendous annual growth of about 50%, one of the highest in any sector of the Indian Economy. The Department of Telecommunications has been able to provide state of the art world-class infrastructure at globally competitive tariffs and reduce the digital divide by extending connectivity to the unconnected areas. India has emerged as a major base for the telecom industry worldwide. Recent things to watch in Indian telecom sector are:      3G spectrum auctions Mobile Number Portability(MNP) Implementation New Policy for Value Added Service Due to technological advancement and increase in traffic. Abolition of Access Deficit Charge (ADC).

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CHAPTER -5

RESEARCH METHODOLOGY

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Research Methodology
Research methodology is away to systematically solve research problem. In it we study the various step that are generally adopted by researcher in studying his research problem along with logic behind them. It is necessary for a researcher to know not only the research method/techniques but also the methodology. It may be noted, in the context of planning & development that the significance of research lines in its quality and not in quantity. Researcher should know how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why? Meaning of Research “Research is common parlance refers to a search for knowledge. In fact research is an act of Scientific investigation.”The project was divided in to the following steps. To decide objective of the study

To decide research design & application

To decide source of data collection To decide from of data collection

To organize & collect data To process & analyze report To prepare the research report

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1. To decide objective of the Study:This step is also research problem. Problem definition is the most critical part of the research process. Research problem definition involves specifying the information needed by management. The main objectives of the study are:  To Creating the Awareness of Hotel Pristine Inn in among Corporates in Pune.  To find out the level of customer satisfaction with the offers, discount and services offered by Pristine Inn. 2. To decide research design & application:Research design involves defining the research problem, determining how to collect the data and from whom, establishing the way the data will be analyzed estimating costs and the preparation of the research approach. For this study, descriptive research was selected. 3. To decide Source of data there are two source of data  Primary Data  Secondary Data Primary data:Primary data is the original data collected specifically for the problem. Reason for selecting primary data:In terms of primary data a questionnaire has been used to interview desire sample units that give accurate and up to data information as well better to research problem. Research approaches: - Primary data can be collected in five main ways: through Observation, focus groups, surveys, behavioral data, and experiments. Research instruments:- Marketing researchers have a choice of three main research Instruments in collecting primary data:
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 Questionnaires: - A questionnaire consists of questions presented to respondents for their answers. Because of its flexibility, the questionnaire is by far the most common Instrument used to collect primary data. Questions can be open -ended or closed-Ended.  Qualitative measures: - Some marketers prefer more qualitative methods for gauging consumer opinion because consumer actions do not always match their answers to survey questions. Qualitative research techniques are relatively unstructured measurement approaches that permit a range of possible responses, and they are a creative means of ascertaining consumer perceptions that may other-Wise be difficult to uncover.  Mechanical devices: - Mechanical devices are occasionally used in marketing research .Mechanical devices like galvanometers measure the respondent‟s interest or emotions aroused by exposure to a specific ad or picture. Secondary data:Data potentially useful in solving a current problem but that were collected for a different purpose. Reason for selecting secondary data:Secondary data can be gathered quickly and inexpensively, compared to primary data, it is clear useful to study analyzing the recent development in the telecom industry. Contact methods:- Once the sampling plan has been determined, the marketing researcher must decide how the subject should be contact:  Mail questionnaire: - The mail questionnaire is the best way to reach people who would not give personal interviews or whose responses might be biased or distorted by the interviewers. Mail questionnaires require simple and clearly worded questions.  Telephone interview: - Telephone interviewing is the best method for gathering information quickly; the interviewer is also able to clarify questions if respondents do not understand them. The response rate is typically higher than in the case of mailed questionnaires.
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 Personal interview: - Personal interviewing is the most versatile method. The interviewer can ask more questions and record additional observations about the respondent, such as dress and body language. Personal interviewing takes two forms. In arranged interviews, respondents are contacted for an appointment, and often a small payment or incentive is offered. Intercept interviews involve stopping people at a shopping mall or busy street corner and requesting an interview.  Online interviews: - There is increased use of online methods. There are so many ways to use the Net to do research. In this method, researcher can include a questionnaire on its Web site and offer a people to answer the questionnaire. 4.To decide from of data collection:For this project survey method was selected which was carried through person interview. Because information from different customers was required. 5. To organize & collect data:Once the researcher has formulated and development a research design including questionnaire second thing he has to decide whether he has to collect the information. From all the targeted customers. There can be two types of survey are possible.  Sample Survey  Census Survey “For this project sample Survey was chosen” Characteristics of the sample survey are: It is cheaper than census survey  It requires less time  It is economical  More detail information can be collected
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 Deciding the sample plan requires following decisions  Sample unit “Who is to be surveyed”

Sample Sample is the true representation of the population by studying of the sample we can predict the behavior of the population. Sample Size: 250 (in this case) Method of Sampling:In this project, the survey was done within the market that means probabilistic convenience Sampling was carried out. 6. To process & analyze data:After the data was collected it was tabulated, analyzed and interpreted to the conclus ion reach. Techniques Applied Bar Chart:- A chart in which the length of the bar represents the amount of the item associated with the bar. Pie Chart:- A circle divided in to sections, such that each section represent the percentage of the total area of a circle associates with one variable. Types of Research Along with this there may be 3 type of research methodology these are : They are –  Exploratory Research  Descriptive Research
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 Casual Research “Our research is based on the exploratory research.” Exploratory Research “The objective of this research is to gather preliminary information that will help us to define the problem and to suggest any hypothesis.” Which means first we have to define the problem and research objective? Then we have to develop the research plan for collecting information. Now after collection data we have to interpret those data for any suggestion,

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CHAPTER-6

DATA ANALYSIS & INTERPRETATION

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Proximity of Service Center Table No.6.1 Customer’s Opinion Excellent Very Good Good Average Poor Percentage Responded 3% 30% 37% 23% 7%

Figure No.6.1

% 35% R e s p o n d e d 30% 25% 20% 15% 10% 5% 0%

Proximity of Service Center
29% 25% 23% 18%

5%

Excellent

Very good

Good

Average

Poor

Customer's Opinion

Data Analysis The analysis shows that there is 3% Customer‟s opinion for excellent, 30% for Very good,37% for good and there is also 23% opnion is average and 7 % for poor. Data Interpretation Virgin has a large no. of customers those are satisfied with the services, it increase the customer relationship and also increase the sales of the company.
43

User friendliness of delivery Point Table No.6.2 Customer’s Opinion Excellent Very Good Good Average Poor Percentage responded 33% 53% 7% 7% 0%

Figure No.6.2

User friendliness of delivery Point
22% 12% Excellent 38% 28% Very good Good Poor

Data Analysis By the analysis we conduct that there is 5% for the excellent, 25 % customer‟s opinion for very good,7% for good and also 0% for poor. Data Interpretation Virgin has friendliness of delivery point, Virgin Mobile use effective techniques for take attention of customer‟s.
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Service Time
Table No.6.3 Customer’s Opinion Excellent Very Good Good Poor Percentage Responded 19% 34% 27% 20%

Figure No.6.3

% R e s p o n d e d 40% 35% 30% 25% 20% 15% 10% 5% 0% Excellent 11%

Service Time
34% 25% 20%

Very good

Good

Poor

Customer's Opinion

Data Analysis By the analysis there is 3% response for excellent and very good, 47% for good, 27% for average also there is 20% response for poor. Data Interpretation Virgin makes the huge no of satisfied customers by its services. It is helpful to increase the customer relationship and also for the sales of the company.

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Availability of Customer Care
Table No.6.4 Customer’s Opinion Excellent Very Good Good Poor Percentage Responded 19% 34% 27% 20%

Figure No.6.4

Availability of Customer Care
40% % 35% R e s p o n d e d 30% 25% 20% 15% 10% 5% 0% Excellent Very good Good Poor Customer's Opinion 11% 34% 25% 20%

Data Analysis There is observed by the analysis that 18% opinion for excellent, 23% for Very good, 39% good and also there is 20% for poor. Data Interpretation Virgin mobile has very good and huge customer care service, by this customer can easily find the solution of the problem.

46

Quality of Service by Customer Care
Table No.6.5 Customer’s Opinion Excellent Very Good Good Poor Percentage Responded

19% 34% 27% 20%

Figure No.6.5

Quality of Service by Customer Care
R e s p % o n d e d 40% 35% 30% 25% 20% 15% 10% 5% 0% 34% 25% 20% 11%

Excellent

Very good

Good

Poor

Customer's Opinion

Data Analysis By the analysis there is 19% response for excellent, 34% very good, 27% good and also for 20% poor Data Interpretation Virgin Mobile has good quality of customer care Services, where customer gets the quick response of his queries; it makes the good relationship between the company and customer.
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Network Quality
Table No.6.6 Customer’s Opinion Excellent Very Good Good Poor Percentage Responded 17% 36% 26% 21%

Figure No.6.6

Network Quality
22% 12% Excellent 38% 28% Very good Good Poor

Data Analysis The analysis shows that there is 17% response for excellent, 36% for very good, 26% for good and also 26% response for poor. Data Interpretation Virgin mobile has good network quality; by the analysis it is found that there is large no. of customers those are highly satisfied with the network quality of virgin mobile.

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Overall Satisfaction Level
Table No.6.7 Customer’s Opinion Excellent Very Good Good Poor Percentage Responded
12% 38% 28% 22%

Figure No.6.7

Overall Satisfaction Level
22% 12% Excellent 38% 28% Very good Good Poor

Data Analysis By the analysis there is 12% response for excellent,38% for very good,28% response for good, and also 22% response for poor. Data Interpretation Virgin has large no. of satisfied customers by its services and offers. But in rural area virgin is not so much successful.

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Virgin Connection

Table No. 6.8 Customer’s Opinion Yes No Percentage Responded 90% 10%

Figure No.6.8

Data Analysis By the analysis we come to conclusion that 10% of customer base is using virgin connection and 90% other network. Data Interpretation There is less no of virgin mobile user in the Allahabad, so there is large no of other network user.

50

Which is the most important factor while using Mobile Service

Table No.6.9 Reasons Price Mobile handset compatibility Mobile Service of friends and relatives Free extra services like internet, down Others Percentage Responded 42% 33% 12% 6% 7%

Figure No.6.9

% R e s p o n d e d 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0

Which is the most important factor while using mobile Service

CDMA Technology

Limited Handsets

Price

Switching from existing handset

Others

Reasons

Data Analysis By the analysis we conduct that there is 42% for price, 33% for mobile handset compatibility, 12% for mobile service of friends and relatives, 6% for free extra service like internet download,7% for others. Data Interpretation There is large no of customer price conscious and they prefer handset compatibility like GSM or CDMA.
51

Which is the most cost effective Brand? Table No.6.10 Brand Virgin Reliance Tata Indicom Aitel Vodafone Percentage Responded 21% 24% 7% 24% 24%

Figure No.6.10

Data Analysis The analysis shows that there 21% for virgin,24% for reliance,7% for Tata Indicom, 24% for Airtel,24% for Vodafone. Data Interpretation By the analysis it is founded that virgin is most cost effective brand.
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Are you aware of virgin’s 50 paisa STD Plan Table No.6.11 Customer’s Response Yes No Percentage Responded 68 32

Figure No.6.11

Data Analysis By the analysis there is 68% response for yes and 32% response for no. Data Interpretation There is average awareness of virgin mobile 50 paisa STD plan.

53

Are you aware of virgin’s paid incoming call plan ? Table No.6.12

Awareness Yes No

Percentage Responded 88% 12%

Figure No.6.12

Data Analysis By the analysis there is 88% response for yes and 12% response for No. Data Interpretation There is highly awareness of virgin mobile paid incoming call plan.

54

If not a virgin customer, will you like to switch to virgin ? Table No.6.13 Customer’s Opinion Yes No Can‟t Say Percentage Responded 14 32 54

Figure No.6.13

Data Analysis By the analysis there is 14% response for yes and 32% response for no and 54% for can‟t say. Data Interpretation There is low customer response for switch to virgin mobile because of the CDMA compability.

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What is the main problem going for virgin mobile?
Table No.6.14 Problems CDMA Technology Limited Handsets Price Switching from existing handset Others Percentage Responded 36% 42% 8% 10% 4%

Figure No.6.13

What is the main problem going for virgin mobile?
% R e s p o n d e d 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0

36%

42% 10% Switching from existing handset

8% CDMA Limited Technology Handsets Price

4% Others

Problems

Data Analysis By the analysis we conduct that 36% response for CDMA technology, 42% for Limited handset, 8% for Price, 10% for Switching from existing handset, 4 % for others. Data Interpretation There is huge response for CDMA Technology Problem and also for Limited handsets.

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CHAPTER-7

FINDINGS

57

Findings

 Virgin comes only CDMA features.  Virgin has a large no. of customers those are satisfied with the services, it increase the customer relationship and also increase the sales of the company.  Virgin has friendliness of delivery point, Virgin Mobile use effective techniques for take attent ion of customer‟s.  Virgin mobile has very good and huge customer care service, by this customer can easily find the solution of the problem.  Virgin has large no. of satisfied customers by its services and offers. But in rural area virgin is not so much successful.  Virgin is most cost effective brand.

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CHAPTER-8

LIMITATION

59

Limitation
 It was assumed that the information given by the respondents is authentic and best of their knowledge.

 Some of the view given was completely views by customers as they were in a hurry and were not considered in the data analysis.

 The result of the study is applicable to the survey area only.

 Time and Money is also one of the important limitations.

 Dull process and unwilling respondent also affect the result of the study.

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CHAPTER-9

Conclusion & Recommendation

61

Conclusion of the Study
Telecom industry is seeing a rise as the trend goes and has potential for growth. Taking into account the tele-density of 38.88% there is still unexplored market. The competition is fierce with around 10 Service providers in most of the 18 circles and also the implementation of MNP. The service providers have to be different and have to stick to strict service norms and provide excellent customer service in order to hold on to the market share. Thus there is intense competition in the market but at the same time scope for development in rural areas. Airtel, Idea and Vodafone have taken up initiatives to provide customized connections to Rural customers like Motor pumps control system, loud speaker phone for illiterates and so on. In a few words Telecom sector has a lot of scope for growth and the customers at the same time have the benefit to choose from a wide range of service providers offering various plans targeted to specific customers  It can be said that Virgin has created its image in a very short period in Allahabad.  It is attracting the customers with its good services. Most of the customer satisfied by Virgin mobile services and facilities.  This satisfaction can be concluded by the response of customer in the questionnaires. Day by day Virgin is improving his reputation to other Mobile network.

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Recommendations:

 Virgin should try to promote its latest plans like 50 paisa STD calls in advertisements.

 Making customers aware about latest pricing will increase its market share in terms of cost effectiveness.

 Virgin should try to tap 14% of customer base who want to switch to virgin but not able to switch because of existing non-compatible handset.

 Solving existing non-compatible handset problem and better communication to inform latest pricing strategies will lead to substantial increase in consumer base for virgin mobile.

 In order to enhance customer satisfaction, time gap between services sought and delivered should be minimized.

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Appendix

64

Questionnaire for the Virgin Customers: Please fill this questionnaire and rate Virgin Mobile on the following aspects from 1 to 5, with 5 representing excellent i.e. highly satisfied and 1 being poor i.e. highly dissatisfied. Q.No.1: how is the proximity of the service centre? Ans: 1 2 3 4 5

Q.No.2: Is the delivery point user friendly? Ans : 1 2 3 4 5

3. How satisfied are you with time gap between services sought and delivered? 2 3 4 5

4. How accessible is the customer care on phone? 1 2 3 4 5

5. How well does the customer care respond to the queries of the customer? 1 2 3 4 5

6. How is the Network quality? 1 2 3 4 5

7. The overall satisfaction level with Virgin Mobile? 1 2 3 4 5 Name: Address: Contact No:

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Questionnaire for target customer’s expectation: Note: - Please fill this questionnaire and help us in finding target customer‟s expectation from the firm. Please select the option which according to you is most suitable: 1. Do you own a virgin mobile connection? a) Yes b) No

2. Which is the most important factor while using a mobile service? a) Price b) Mobile handset compatibility c) Mobile service of friends and relatives e) Others

d) Free extra services like internet, downloads

3. Which is the most cost effective brand in mobile service? a) Virgin b) Reliance c) Tata Indicom d) Airtel e) Vodafone f) Idea g) Bpl h) Don‟t know 4. Are you aware of 50 paise national call plan of virgin mobile? a) Yes b) No

5. Are you aware of paid incoming call facility by virgin mobile? a) Yes b) No

6. If not a virgin customer, will you like to switch to virgin? a) Yes b) No c) Can't say

7. Why you do not want to go for virgin mobile? a) CDMA technology b) Limited Handset c) Price d) Switching from existing handset e) Others

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67

BIBLIOGRAPHY

68

Name Of Book

Name Of Author

Edition & year

Marketing Management

Paramhans Foundation

First Edition, 1992

Research Methodology

C.R.Kothari

Second Edition, 1993

Marketing Management

Philip Kotler

Tenth Edition, 1999

Fundamentals of Statistics

D.N.Elhance

Present Edition, 1992

REFRENCES

1. Website of www. mobilestore.com

2. Website of www.google.com 3. www.virginmobile.com

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