sales promotion and distribution strategy of spice mobile2
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CHAPTER 1 INTRODUCTION Introduction For this project, we have chosen the SPICE. Spice is a mobile telecommunications company, and offers far more than just mobile phones for everyday use. They offer networking solutions for businesses that help businesses stay connected and communicate with each other at all times and places. For them, Spice also offers special mobile phones with exquisite and unique functions and options. In this project, we will first talk about what Spice is and what they do. We will talk about their history, and how they came to where they are today. Vision, goals, and their strategy are discussed, as well as their wide variety of products and services offered for the regular consumer, businesses, and service providers. Spices success benefits were some advantages they had in the market. These also include the advance technology and features, as well as services they offer to their consumers. However, like most other companies, Spice has some weaknesses, but we consider these to be very minimal, and almost only come down to their competition. Lastly, we will talk about their informational business model. This model includes Spices work organization, control system, industrial relations, human resources, business strategy, and finally, enterprise organization. We will look closely at and discuss all of these elements, and why we think that they are relevant to Spice. Mobile phone market in India is going through major changes. Key players are losing market share while new and young companies, mostly from Asian countries, are coming to the market. At the same time the market is slowly expanding when people are buying more phones than ever. The whole process of buying mobile phones has changed in the last few years. People no longer carry the same phone year in year out; change is the fast technological development of the phones. But also consumers but they change their phone every year, some even twice a year. One reason for these attitudes towards mobile phones has changed. Mobile phones are no longer seen as expensive, hi-tech products, but they have become accessories like jewellery or a piece of clothing. Spice is still the largest mobile phone company in the world, but its long-term dominance is now challenged more than ever and emerging markets. This report gives an overview on SPICE It is the most expensive and powerful model in the whole Spice portfolio. It cant stand up to the level of popularity that N95 once enjoyed, though, but still serves a formidable expansion of the model range upwards. The device looks interesting in terms of the availability of DVB-H digital TV and strikingly high specifications. It comes with an astonishing 16 Gb of onboard and 8 Gb of replaceable flash storage, and has a pronounced focus on the video aspect. Even the form factor and bundled kick-stand suggest this model being a TV-phone, let alone the numerous hardware specifications specially fitted to this cause. The STMicroelectronics chipset offers its video-relevant powers at a cost, though: it doesnt do as well in the rest of performance tests. We cant say lags in the menus, yet a certain delay can be felt, its a bit slower than N78 and N85. A high audio quality, a large screen and a spacious storage make a perfect multimedia player and a possible replacement for a number of Spice users. The price is going to be comparable to the starting price of N95 8GB, namely around 550 Euros. N95 will slowly phase out of the market, making way for the new flagship (its currently out of production). Thats how the company divided the niche originally occupied by N95 8GB in two: one model sticks to the same price bar, the other (N85) sells at a lower price and plays a big part on the mass market, nominally featuring slightly lower specifications.
CHAPTER - 2COMPANY PROFILE COMPANY PROFILEThe only thing constant in this world is change. We are always fuelled by the desire to make a difference, bring about the change for better. We dream about continuously enriching the mobile society, enabling them to live life to its fullest and bringing their dreams alive. .
We are a multi-faceted management group that is engaged in establishing a lead in an emerging business area, which is an outcome of the linkages and converging communication and entertainment technologies.
We have a proven track record of over 30 years in building some of Asias most successful Joint Venture Partnerships in collaboration with world leaders in cutting edge technologies Mobile Phones, Mobile Retail, Onshore BPO, Mobile VAS, IT Systems Integration, Entertainment and Retail Real Estate.
With our base of strong intellectual capital, joint-venture expertise, global connectivity, proven track record and benchmark in corporate governance, we have redefined the scope of our operations and refocused our strategies to further strengthen our global positioning.
At Spice, we use our intelligence and experience to find new and different ways to invigorate the market and delight people by offering them enduring value.
First Indian company to set up a private telecom plant The first company to launch cellular telephone services in India First Indian company to launch a Dual Mode phone in India
You are here: Home About us Vision & promise
Our Brand VisionTo stay one step ahead of the dreams of the mobile society
Our Brand PromiseWe deliver outstanding value by combining deep market knowledge with unconventional thinking. Knowledge guides us but imagination drives us.
Mr. D.R. MehtaAlumnus of the Royal Institute of Public Administration, London, and Alfred Sloan School of Management, MIT, Boston.
Professional Career
Civil Servant for almost four decades
Former Chairman, Securities and Exchange Board of India (SEBI)
Former Chairman, Asia Pacific Regional Committee (APRC) of International Organization of Securities Commissions (IOSCO)
Deputy Governor, Reserve Bank of India
Secretary (Industries), Mines, State Enterprises
Director on the Central Board of the Reserve Bank of India
Mr. Mahesh PrasadProfessional Career
Chairman, Delhi Public Grievance Commission in the capacity of Cabinet Minister
President, Sahara India TV Network
Secretary, Ministry of Finance
Advisor, Planning Commission
Secretary, Departments of Planning, Finance & Industry
Mr. K.N. MemaniCertified Chartered Accountant
Professional Career
Chairman and Country Managing Partner, E&Y
Member, E&Y Global Council
Specialist, Business and Corporate Advisory, Foreign Taxation, and Financial Consultancy
Member, Expert Committee constituted by the Ministry of Company Law for the amendment of Companys Act
Member, National Advisory Committee on Accounting Standards
Mr. K.L. ChughProfessional Career
Chairman Emeritus, ITC Ltd.
Adjudged second best amongst Indias Chief Executives and was named Financial Worlds International CEO for the year 1994, Asia
Chairman, ITC Group from 1991 to 1995
Member, Court of Governors, Administrative Staff College, Hyderabad
President, AIMA for the year 1993-94
We push all boundaries to think beyond the conventional and stay one step ahead of the dreams of the mobile community.
Our many firsts include... First Indian company to set up a state-of-the-art copier manufacturing plant
Establishment of Indias first facsimile manufacturing company
First Indian company to market high-end laser printing systems
Indias first company to manufacture 3.5" floppy
First Indian company to set up a private telecom plant
The first company to launch cellular telephone services in India
First Indian company to export digital switching systems
The first Indian MNO to offer flexi tariff plans for cellular services
First to manufacture eco-friendly paper products
Pioneers of complete Environment, Health and Safety Management Systems in India
Establishment of Indias first 4D theatre
First Indian company to launch a Dual Mode phone in India
Indias first GSM operator to launch a handset bundled offer for less than Rs.1000/-
STRATEGIES Customer remains the top priority
Spices priority is to be the most preferred partner to operators, retailers and enterprise
The brand goal for Spice is to become the most loved brand by the customer
Spice s business strategy focus on 5 areas:
Create winning devices
Embrace consumer internet service
Deliver enterprise solution
Build scale in networks
Expand professional services
Wherever, whenever, we believer in communicating, sharing and in the awesome potential of connecting the 2 billion who do, with the 4 billon who dont At Spice, customers remain our top priority. Customer focus and consumer understanding must always drive our day-to-day business behavior. Spices priority is to be the most preferred partner to operators, retailers and enterprises.Spice will continue to be a growth company, and we will expand to new markets and businesses. World leading productivity is critical for our future success. Our brand goal is for Spice to become the brand most loved by our customers.In line with these priorities, Spices business portfolio strategy focuses on five areas, with each having long-term objectives: Create winning devices
Embrace consumer Internet service
Deliver enterprise solutions
Build scale in networks
Expand professional services
There are three strategic assets that Spice will invest in and prioritize:Brand and designCustomer engagement and fulfillmentTechnology and architecture
OrganizationSpice comprises four business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks.
Mobile Phones connect people by providing expanding mobile voice and data capabilities across a wide range of mobile devices. We seek to put consumers first in our product-creation process and primarily target high-volume category sales.
Multimedia brings connected mobile multimedia experiences to consumers in the form of advanced mobile devices and applications. Spice products give people the ability to create access and consume multimedia, as well as share their experiences with others through a range of radio technologies.
Revenue by four business groups
Enterprise Solutions offers businesses and institutions a broad range of products and solutions, including enterprise-grade mobile devices, underlying security infrastructure, software and services. We also collaborate with other companies to provide fixed IP network security, mobilize corporate email, and extend corporate telephone systems to Spices mobile devices.Networks provide network infrastructure, communications and networks service platforms, as well as professional services to operators and service providers. Networks focus on the GSM family of radio technologies and aims at leadership in three areas: GSM, EDGE and 3G/WCDMA networks; core networks with increasing IP and multi-access capabilities; and services. Our business groups are supported by various horizontal entities. Customer and Market Operations is responsible for marketing, sales, sourcing, manufacturing and logistics for mobile devices from Mobile Phones, Multimedia and Enterprise Solutions. Technology Platforms is responsible for the competitiveness of Spices technology assets. The group supports Spices overall technology management and development by delivering leading technologies and well-defined platforms both to Spices business groups and to external customers.Spice-wide horizontal units drive and manage specific Spice assets. They include brand and design, developer support, research and venturing, and business infrastructure. Corporate Functions support Spice's businesses with company-wide strategies and services.
SPICEs performance over a yearOnce SPICEs closest rival, Samsung has been losing its market share since October05 when it had an overall market share (in terms of units) of 1.2, to 7.8% I March06. The drop is much steeper in value terms where its market share has fallen to 9.8% in March06 from 21.2% in October05.Sony Ericssons market share (in terms of units) has improved marginally from 7.1% October05 to 7.6% in March06, although in value terms it has increased from 8.7% in October05 t 10.2% in March06. The color segment, where Samsung used to rue once, has seen its market share falling both in terms of units and value. The market share (units) has dropped to 16.3% in March06 from 34.9% in October05 ad in terms of value, has dropped to 14% in March06 from 32.5% in October05. Sony Ericssons market share in the color segment is marginally more than the Samsungs at 16.7% (unit) and 15.9% (value) in March06 and is an improvement over its October4 figures of 15.6% (units) and 14% (value). The total handset units sold in the top 10 towns in the month of March is 5, 06,493 units, from 4, 68,621 units inOctober05. The total value of the handset s sold is Rs.245.6 crore as of March06 from Rs.236.1 crore in October06. The number of color phones jumped to 2, 11,779 units in March06 from 1, 66,210 units in October05. The value of the color phone market increased to Rs.15, 208 lakhs in March06 from Rs13, 023 lakhs in October05.
Situation AnalysisSocial Analysis: For electronics companies, take back and recycling add value. They support brand value and customer loyalty and inspire customer insights. They also demonstrate environmental responsibility. Manufacturers like Spice are generally in a disadvantaged position for take back, due to the costs involved and the lack of many consumer touch points. Stakeholders in the take back and recycling process include Urbans, retailers, customers, consumers and products. Other stakeholders include recyclers, refurbishes and NGOs.The responsibility for bringing used devices back for recycling lies ultimately with the consumers. The challenge for Spice in take back programs is how to make mobile phone users do their share and return the used products for recycling. By bringing the used mobile to a take back point the customers make sure that used phones will not end up in landfills in their own or other countries. Instead, the recyclable raw materials can be used again in new products. In a typical consumer scenario, such as when a mobile phone user is renewing a service contract with a mobile phone provider, in the US and Europe an estimated 60% to 70% retain their old devices because of their perceived value. Successful take back is also driven to a great extent by economics and market factors, which in turn place large quantities of used devices in refurbishment scenarios. This causes concern for the quality and safety of products repaired or altered outside of the intense controls fundamental to a Spice production process. The optimum outcome from Spice's environmental efforts in the product lifecycle is to minimize adverse effects to the environment, to our customers and consumers and to our business. As the Spice lifecycle philosophy applies to take back, the power to manage take back and direct the disposal of a mobile device at the end of its life is largely controlled by: customers, consumers, retailers, and by Urbans. There are various take back channels and Spice has limited control over the actual flows. Despite the challenges posed by the logistics of recovery, Spice has for years had programs in place and continues to move ahead with new programs to recover mobile devices at the end of their useful lives.These include take back: Via our authorized service centers and flagship stores Through our web site, only limited in certain countries As part of eBay Rethink, only in the US Spice is also piloting different forms of cooperation with operators and distributors, such as installing collection bins at point of sales and mail service return, as well as in various industry level schemes and in public awareness building campaigns.Environment Analysis: SPICE aims to be a leading company in environmental performance. By working to reduce the adverse environmental impacts of our products and activities, our customers can use our products with confidence and good conscience. Combining environmental issues into daily work makes business sense for Spice. By working to reduce the adverse environmental impacts of our products and activities, we minimize risk, ensure legal compliance, gain stakeholder acceptance, and help advance the long-term success of our company.Our customers can also use our products with confidence and good conscience. Through our environmental strategy, we work to ensure that our products are safe for personal use and that they do not overly tax the environment. Spice is a trusted brand and we take that trust seriously.
Spice environmental strategy: Spice is a leading company in environmental performance. Spices environmental strategy is based on lifecycle thinking, beginning with the extraction of raw materials and ending with recycling and disposal of as well as the reintroduction of recovered materials into the economic system. Our goal is to develop advanced mobile technology, products and services, which have no undue environmental impact, consume energy efficiently, and that can be appropriately reused, recycled or disposed of. Spice's environmental strategy is integrated with our business strategy. Our four business groups have set environmental targets for their own activities to implement our corporate level environmental strategy.Main Issues in Focus:Three important global issues remain at the forefront of much of Spices environmental work. They are substance management, arrangements for the take back and recycling of end-of-life products, and energy efficiency.* Substance management
During the planning and design of our products, one of our main focus areas is their material content. We are continuously analyzing the materials used in our products with the aim of reducing the amount of potentially hazardous or harmful content.* Take back and recycling
In take back and recycling, we have for years had in place our own arrangements for mobile devices and accessories, as well as for mobile network and IP network security equipment. All Spice products are also covered by the European Union's new Waste Electrical and Electronic Equipment (WEEE) directive. Spice is assuming product responsibility as defined by the directive as it is implemented throughout Europe. In addition, take back of Spice mobile devices will also continue at authorized Spice Service Centers and Flagship stores in all markets where we do business.
* Energy efficiency In our product creation as well as our own operational activities, an important area for continuous performance improvement is in energy efficiency. We have consistently been able to reduce the energy intensity of our products.Marketing Strategy
Today, the true killer data application is still text messaging, a typical example of person-to-person communication. Other end-user services, however, have not taken off as expected in recent years. Marketing strategy of to promote this set through proper Chanel.
The primary reason for this slow take-up is that most of these services do not fulfill the expectations of users. Although ring tones are one example of successful person-to-content services, progress must be made for market take-up of other mobile data services such as: Messaging (e.g., MMS and e-mail)
Entertainment (e.g., graphics, logos, games)
Information (e.g., directory services, news) Internet
Latest TechnologyMarketing Objective Capture rural India market
Target school student
Attract Customers to New technology
Enhance Distribution
Maximize Spice revenues
Maintain Customers Loyalty
Product Life CycleA large untapped potential exists among the present base of non-users: the 10% of existing customers who use services infrequently or do not use services at all, even though they have the right mobile handset. In general, these mainstream users are more loyal to their existing service provider, making them a group to reward for their loyalty. Ease-of-use is one of the key factors when increasing customer loyalty, which, in turn, will lower churn and eventually lead to a decrease in marketing expenditures. Differentiation by ease-of-use experience will also have an effect on increasing ARPU, because it speeds up the adoption of new services.The more mainstream the target users, the more they value ease-of-use and customer intimacy and seek practical uses for new services. The fact that ease-of-use is particularly relevant to mainstream users makes it such an important consideration. Making a service successful in the mainstream market has the challenge for most existing services. Creating ease-of-use in services will help a service provider to cross the chasm from the early market of innovators and trendsetters to the mainstream market of average users.
3D Phone
Yet another remarkable achievement of Spice with the launch of the Indias first 3D PHONE M-67 3D. Integrated with an auto-stereoscopic display, the handset allows you to view 3D videos with perfection and yes you DONT REQUIRE SPECIAL GLASSES. Not just the videos, the cell phone is indeed entrenched with 3D Image Viewer and also the 3D User Interfacemaking the phone experience all the way new & enliven.
Auto-Stereoscopic Display
M-67 3D is bestowed with Auto-stereoscopic Display, which facilitate users to view three-dimensional images, enabling objects to appear more real & physical. The dedicated 3D shortcut key on the phone key lets users to switch amid 2D and 3D mode instantly. Further, the phone supports parallel version of 3D Image and Video format for that perfect viewing.
Remote Wipe
Scared that somebody might access your personal dataNo worrieswhen spice has smarter ways to tackle thingsThe unique feature of M-67 3D enables you to control your phone remotely. When your phone is lost or you had left it at a place where data can be misused just send a command to control your phone. This feature is known as a Remote Wipe, through which you can control your handset using following options.
Switch Off Your Phone
Delete Phonebook
Delete Call Log
Delete Messages
Format Memory Card
Format Phone
Send Business Card
Video Player
Make things come alive..!!Now toggle swiftly between 3D and 2D video player modes with your M-67 3D. The one touch key allows you to view your favorite 2D/3D videos making them appear more real & alive.
2 MP Camera
The handset is endowed with a 2 MP camera featuring, digital zoom, scene mode, white balance and color effect adding delight to your picture capturing.
Mp3 & FM
Now tap into the music with Mp3 Player and groove on your favorite tunes. Whats more, you can get your hop with the latest songs hitting the airwaves with FM Recording.
Multi SIM
Two SIMs, one phone, zero confusion. With the multi-SIM capability of M-67 3D, dont let your personal life collide with your professional life.
The Product Life Cycle (International)
Services Life CycleCreating and implementing a business strategy that focuses on ease-of-use will enable the service provider to increase service revenues. Naturally, strategies across geographical regions and operators differ and it is not possible to copy exactly from the experiences of others. Service uptake and usage differ vastly depending on the stage of the overall society and service culture, main technologies chosen, competitive market situation, maturity level of networks, and other network lifecycle variables.SPICE service life cycle is not short because it is good quality product. People or consumers like SPICE products.Positioning StrategyWhen Spice positions its brand in the crowded mobile phone marketplace, its message must clearly bring together the technology and human side of its offer in a powerful way. The specific message that is conveyed to consumers in every advertisement and market communication (though not necessarily in these words) is "Only Spice Human Technology enables you to get more out of life In many cases, this is represented by the tag line, "We call this human technology". This gives consumers a sense of trust and consideration by the company, as though to say that Spice understand what they want in life, and how it can help. And it knows that technology is really only an enabler so that you-the customer-can enjoy a better life. Spice thus uses a combination of aspirational, benefit-based, emotional features, and competition-driven positioning strategies. It owns the "human" dimension of mobile communications, leaving its competitors wondering what to own (or how to position themselves), having taken the best position for itself. has created a distinct position in customer mind by:
Spice logo..> Slogan> Know our past. Create the future Latest Ring Tone
New Messages Tunes
The specific message that is conveyed to the customers in every advertisement.
SPICE Chose both StrategiesWe chose both strategies because we know if we dont use both strategies we unable to promote our new product. We want to promote our product world wide it is impossible if we dont use both strategies . SPICE is a large company and it have the ability to promote its product widely through both strategies.Pricing StrategyPricing Strategy Matrix:Spice observes different pricing strategy for SPICE . The main aim is to gain the market at rural village of India and maintain its customer for Mid range phone.Premium Pricing:
Spice use a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxuries such as SPICE E-series mobile phone.
Penetration Pricing:The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used Spice on Model No. 1100 and 1108, in Indian rural market.Economy Pricing:This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Spice follow it for its mid range Mobile phone. Normally it is to attract middle income group.Price Skimming:Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply.Distribution Strategy
SPICE has become a major part of our life. On the one hand, India Mobile phone market has grown rapidly in the last few years on the back of falling phone tariffs and handset price, making it one of the fastest growing markets globally.Spice is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Spice connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, device and solutions for imaging, games, media and businesses. Spice provides equipment, solutions and services for Network operators and corporations.Spice held a global market share of 34.2 percent at the end of January, according to consultants strategy Analysis, while Motorola had 18.3 percent, Samsung 11.1 percent, and LG and Sony Ericsson 6.6 percent each. To illustrate Spices performances, more than one third worlds phone users use a Spice phone. In India Spice is the market leader, with a manufacturing facility in Chennai. The Spice requires to have a regular check on these channels if they working efficiently and take steps to further step to improve. The Spice only stay ahead in profits, market share etc, only if their products reach the outlets on time as well based on demand .The project began with the basic understanding of how distribution of mobile phones takes in the market by Spice. Spice works with the distribution of mobile phones takes in the market by Spice. Spice works with the distributor, re distributor stockiest (R.D.S) and finally the retailer from whom the product is sold to the consumer. Five forms of outlets sell Spices products:
Product MixProduct:
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List View Grid View Sort by All Categories Mobiles & Accessories GSM Handsets 24 results found for spice
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Spice Bar Cum Touch Screen Phone M-5500
Rs. 4599 Rs. 3999
13%OFF
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Spice M-6200 Mobile Phone
Rs. 2999 Rs. 2199
27%OFF
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Spice M5056 Mobile Phone
Rs. 1849 Rs. 1520
18%OFF
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Spice 3G Android Touch Screen Phone MI-3...
Rs. 8999 Rs. 6999
22%OFF
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Spice FLO M-6800 Mobile Phone
Rs. 4799 Rs. 3779
21%OFF
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Spice Mi-410 Mobile Phone
Rs. 17999 Rs. 13999
22%OFF
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Spice M-5180 Mobile Phone
Rs. 1999 Rs. 1650
17%OFF
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Spice M-6868 Mobile Phone
Rs. 5499 Rs. 4499
18%OFF
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Spice M-6464 Mobile Phone
Rs. 5349 Rs. 2199
59%OFF
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Spice M-5445 Mobile Phone
Rs. 2799 Rs. 2299
18%OFF
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Spice M-9000 Mobile Phone
Rs. 6699 Rs. 5670
15%OFF
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Spice Dual SIM Touch Screen Mobile Phone...
Rs. 3999 Rs. 2999
25%OFF
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Spice Blueberry Mini Mobile Phone
Rs. 3049 Rs. 2599
15%OFF
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Spice Blueberry Express Mobile Phone
Rs. 3599 Rs. 2999
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Spice Dual SIM Phone with Dual Memory Ca...
Rs. 4999 Rs. 1999
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Spice Combo: Dual SIM Phone with FM Tran...
Rs. 7099 Rs. 3599
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Price:
Price of this set is 42,700 which are affordable for heavy users. This price compete the market easily. Price is reasonable because it is facilitating the consumer.Place: It is also available in big cities of India like Islamabad, Lahore, Karachi, and others. Consumer purchases it easily from SPICE retailers which are located in Islamabad, Lahore and other cities of India.
Promotion: We use different channels for promote our new product.
Print media
Pos material
Tv commercial
Billboards and holdingsPrint Media
We often use print media for advertisement. We have a separate department for print media.
TV Commercials
As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So SPICE Company does regular TV commercials on different channels.
Billboards and Holdings
SPICE is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.
Spice customer care centre inaugurated in India
Spice, the world leader in telecommunication technologies, announced the launch of SPICE CARE - customer care centre in Karachi at a glittering event today at the Ebrahim Trade Towers. The briefing, which served to introduce Spice's customer care centre initiative was addressed by Spice's key regional officials, Imran Khalid Mahmood Country General Manager Spice India and Afghanistan, Ian Stewart, Care Director Spice Middle East & North Africa and Zoff Khan, Managing Director of Global Customer Care, a Koohiji Group Company. The Spice care centre has been established to facilitate consumers and is a global initiative, which is the first of its kind in India. Spice care was launched in Lahore last month and is now being launched in Karachi, with many more to come. The Spice care will provide customers with the required help and assistance needed to ensure optimal performance of their Spice devices, with easy access to expert maintenance services and purchase enhancements for the sole purpose of maximising customer satisfaction. Additionally it will offer a unique possibility for consumers in India to check the warranty of their Spice device via SMS, by simply sending the IMEI number of the device to 66542 (Spice), shortly after which a response will be sent back to the device from which the query originated.
Sharing his insights on the occasion, Imran Khalid Mahmood Country General Manager, Spice India and Afghanistan stated, "The Spice Care Centre in India demonstrates our firm commitment to bringing services in the local market that will help us meet customer expectations via a constant flow of first hand information and feedback from our customers."
Constraints:
Slow pace of the reform process. It would be difficult to make in-roads into the semi-rural and rural areas because of the lack of infrastructure. The service providers have to incur a huge initial fixed cost to make inroads into this market. Achieving break-even under these circumstances may prove to be difficult.
The sector requires players with huge financial resources due to the above mentioned constraint. Upfront entry fees and bank guarantees represent a sizeable share of initial investments. While the criteria are important, it tends to support the existing big and older players. Financing these requirements require a little more liberal approach from the policy side.
Problem of limited spectrum availability and the issue of interconnection charges between the Rural and state operators.
CHAPTER - 3
RESEARCH OBJECTIVES2.1.1 MAIN OBJECTIVEA market study Spice mobiles phones in rural and urban market. 2.1.2 SUB OBJECTIVES To know the brand image of SPICEin the market.
To study the Spice user in rural sector
To study the Spice user in urban sector
To know the key buying factors those are used in hiring the Spice phones.
CHAPTER - 4
RESEARCH METHODOLOGY
Marketing research is the systematic and objective search for the analysis of the information relevant to the identification and solution of any problem in the field of marketing. The objective behind this project was to get a deep insight into the answers to the questions what are the problems faced by the Broadband users from their current service providers and their perception about SPICE. The object of the survey were the Broadband users of various telecommunication services .
2.1 RESEARCH OBJECTIVES2.1.1 MAIN OBJECTIVEAnalysis mobiles phones user of Rural and Urban sector
2.1.2 SUB OBJECTIVES To know the brand image of SPICEin the market.
To study the Mobile phones user in Rural sector
To study the Mobile phones user in Urban sector
To know the key buying factors those are used in hiring the Mobile phones services.
To gauge the competition offered by various service providers in the area of Mobile phones.
Selection of Data Collection Techniques: For this research the data was to be collected was of primary as well as secondary nature. The source of primary data was the consumers of telecommunication services. Thus, the data collection was done through a survey by using Questionnaire technique. This consisted of an interview and questionnaire. The questionnaire contained the questions relating hiring and uses of telecommunication services. The questionnaire was first pre tested and later it was modified by making certain necessary changes in it.
Sample Design: A sample chosen has to be representative of the population. For this survey cluster and stratified sampling was used. The sample size was 100 consumers.
Data Collection: At this stage the data is actually collected according to the decided technique of data collection. The questionnaire is the main source for the collection of data.
Analysis and Interpretation: Data which has been obtained are seldom useful to anyone, if it is not analyzed and interpreted in the order, the breaking down of constituent parts and the manipulating of the data and to obtain answer to the research questions. Interpretations involve taking the result of analysis, making inferences relevant to the research relationship studied and drawing conclusions about these relationships.
Research Report: The culmination of research process is research report. Methodology, results and recommendations for courses of action are presented. The two critical attribute of report are completeness and conciseness. Therefore these attributes are conflicting; a balance has to be stuck between the two. On presenting the research report to the management. The management should be able to take decision on recommendations and conclusions of research.
2.4 Steps in Sampling Design:
Type of Universe: The first step in developing any sample design is to clearly define the set of objects, technically called the Universe, to be studied. Universe can be infinite or finite. In this research the universe taken was finite i.e. the telecommunication service users.
Sampling Unit: A decision has to be taken concerning a sampling unit before selecting sample. Sampling unit in case of this research study were the present and prospective consumers of Meerut region.
Source List: It is also known as sampling frame from which sample is to be drawn. It contains names of all items of a universe. In this case present clients database and prospective clients database were used as source list to pick the required sample.
Size of Sample: This refers to the number of items to be selected from universe to constitute the sample. The size of sample should neither be excessively large, nor too small. It should be optimum. In this research study the size of sample were 100.
Parameters of interests: In determining the sampling design, one must consider the question of the specific population parameters which are of interests. In this research study the parameters of interests were the behavior of telecommunication service users with respect to the services provided to them and the tariff rates offered to them.
Time and Budgetary Constraints: Cost and time consideration from practical point of view, have major impact upon decision relating to not only size but also to the type of
Sample. In this research, the time constraint was that it has to be done in 60 days with a restricted budget.
Sampling Procedure: Finally, the researcher must decide the type of sample he will use i.e., he must decide about the technique to be used in selecting the item for the sample. In fact the technique or procedure stands for the sample design itself. In this research study probability or random sampling is used.
2.5 Tools For Data CollectionThe task of data collection begins after research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for study, the researcher should keep in mind two types of data- primary and secondary.
Sources of Data:
Primary Data: We collect primary data during the course of doing experiments in an experimental research but in case we do research of the descriptive type and perform surveys, whether sample surveys or census surveys, then we can obtain primary data either through observation or though direct communication with the respondents in one form or another or though personal interviews. Since the research is of descriptive type in which data is collected through direct communication with respondents. Sample survey is carried out during this project. The survey was performed through a structured questionnaire.
Secondary Data: Secondary data means data that are already available i.e., they refer to the data which have already been collected by someone else. The sources of secondary data in this project were the websites of various telecom services providers and their company catalogues.
Method adopted in Research:
The survey method was used for this research project. A general survey was conducted to gather the required data.
Research Tool Used:
Questionnaire was used to collect the data from the consumers of telecom services
Method of Population Selection:
The population for this survey was selected with the help of cluster and stratified techniques. In cluster, we divided the city area wise and then we applied stratified under which we used demographic factors, mainly being income and occupation.
Method of Interaction with the Population:
Personal visit method is used for this research project. The respondents were the consumers and prospective consumers of telecommunication services. These respondents were approached and requested to give their opinion on the telecommunication service providers by answering the questions in the questionnaire.
SWOT Analysis Spice is at an important crossroads in its history. Having architected many of the key tenets for growth during the formative years of the mobile phone industry, the market with which Spice is so familiar may be adopting different rules, ones that it may not fully understand. The situation Spice faces may be similar to the period in the PC industry when Dell Computer surpassed perennial leaders IBM, Hewlett-Packard and Compaq Computer. Why might this happen? Because Spice's strengths are so well-understood by its competitors, they are well-targeted and improved upon. The wireless market's evolution has slowed, making it easier to challenge the incumbents. Also, the progress of technology has made many of Spice's early advantages easier to overcome. Spice's leadership position is a result of paying persistent attention to market needs and taking the right chances at the right time. Spice was the first to acknowledge fashion as an important element in mobile phone purchases, and it is solidly behind the push for Multimedia Messaging Service, which could become the first data service beyond Short Message Service to be deemed successful. There is a significant gap between Spice and startups, which makes it difficult to compete against Spice. Spice's tie to operators has kept its products solidly in consumers' view. Yet, Spice faces some serious challenges
Strength:
SPICE is the One of the most popular mobile communication. company in the industry SPICE is high product quality Latest Technology
Latest Software
Product is warrantee worldwide Fashionable product (serve new trend) Global marketing (product)
It has better quality Design is a bit matureWeakness: Its not easy to use
Low voice quality
is heavy set but Samsung latest sets are light Market skimming prices of this Set Difficult functions It is very slow
Opportunities: SPICE N_96 with computer window
New growth market of SPICE Latest and powerful devices
Well designed and stylish set Latest Accessories
Pocket Computer
Threats:
Looking mainly at the competition that is taking away Spices market share.
Orange, Vodafone and O2 and many other operators are globally selling their own heavy and good sets
Higher import charges.
China Mobile made Copy of SPICE Sets and they also made SPICE .
CHAPTER 5
DATA ANALYSISQ-1: Are you using any mobile services
Sample Size: 100
Yes 75
No 25
INTERPRETATION:
In the survey I find most user 75% have mobile connection and rest 25% having no mobile.
Q-2: Which operator number you are using?
Sample Size: 100
LG
10
Sony
25
Spice
15
Blue
20
China
20
Other
10
INTERPRETATION:
In the survey I find most user 25% have LG phones and rest 15% having Spice connection.
Q-3: In which sector you sale Spice ?
Sample Size: 100
Rural 35
Urban65
INTERPRETATION:
In the survey I find most user 65% have using Mobile phones and rest 35% using post paid connection.
Q-4: If prepaid reason behind that?
Sample Size: 100
Low exposure []Ease of use []
INTERPRETATION:
In the survey I find most user 70% says low exposure and rest 30% says ease of use.
Q-5: If post paid, Reason for using post paid Sample Size: 100
High usage
[]Services
[]
Lower tariff rates []All of the above []
INTERPRETATION:
In the survey I find most user 60% says high usage of phone.
Q-6: Reason for associated with the specific operator?
Network []Services []
Call rates []Others []
Sample Size: 100
INTERPRETATION:
In the survey I find most user 40% says call rates.
Q-7: How much is your monthly expense on mobile
Below 300[]Below 500[]
Below 800[]Above 800[]
INTERPRETATION:
In the survey I find most user 60% says below 300.
Q-8: What is the significance of cellular services in your life?
Status symbol []Necessity []
Convenience []Others []
INTERPRETATION:
In the survey I find most user 40% says below necessity.
Q-9: Are you satisfied with services of operator you are using?
Yes []
No []
INTERPRETATION:
In the survey I find most user 60% yes below necessity.
Q-10: What occupation do you have?
(a) Business
(b) Professional
(c) Urban Employee
(d) Student
Occupation Respondent
Professional23
Rural 16
Retirement 5
Urban6
The data shows that 50 persons are from, 23 persons are professionals, 16 persons are Rural and 5 persons are found retirement 6 person are Urban employee to consume mobiles.
Q-11: Which connection you use?
For Urban employee
Sample Size: 100
Prepaid 75
Post Paid 25
INTERPRETATION:
In the survey I find most Urban employee 75% have using Mobile phones and rest 25% using post paid connection.
CHAPTER 6
FINDINGSThe data shows that the total sample size of 50 people taken randomly for the research, 43 people out of then taken mobile with them. This segment compromise of professions, businessperson, service man & students.
About awareness of Telecom Company in Meerut the data collected shows that 60% of the people knows about all the telephone companies dealing in Meerut market, 30% of person knows only few companies, 5% of person knows only one company, 5% are not knowing any other company.
The segment belongs to business and professional like to have Post paid connection. Whereas students and service persons give their preference to Mobile phones.
30% buyers response is very good and 50% buyers response is average and 20% buyers response is not goodUrban employee 75% have using Mobile phones and rest 25% using post paid connection
Rural employee 65% have using Mobile phones and rest 35% using post paid connection
LIMITATIONS
While working on this project I have to face some difficulties while conducting the survey. People were not interested in giving there actual information about their family income and airtime, as they were extremely scared about the income tax some people have difficult to take them in confidence so that they can give correct information.
Some of the limitation are:
Not at office
Refusal to co-operate
Respondent bias.
CONCLUSIONAfter thorough research, we come to the conclusion that the marketing strategy of SPICE is working for them and the is gaining popularity among youth day by day.
Spice is a mobile telecommunications company, and offers far more than just mobile phones for everyday use. They offer networking solutions for businesses that help businesses stay connected and communicate with each other at all times and places. For them, Spice also offers special mobile phones with exquisite and unique functions and options. In this project, we can overview on SPICE . It is the most expensive and powerful model in the whole Spice portfolio. It cant stand up to the level of popularity that N95 once enjoyed, though, but still serves a formidable expansion of the model range upwards. The device looks interesting in terms of the availability of DVB-H digital TV and strikingly high specifications. It comes with an astonishing 16 Gb of onboard and 8 Gb of replaceable flash storage, and has a pronounced focus on the video aspect. Even the form factor and bundled kick-stand suggest this model being a TV-phone, let alone the numerous hardware specifications specially fitted to this cause. The STMicroelectronics chipset offers its video-relevant powers at a cost, though: it doesnt do as well in the rest of performance tests. We cant say lags in the menus, yet a certain delay can be felt, its a bit slower than N78 and N85. A high audio quality, a large screen and a spacious storage make a perfect multimedia player and a possible replacement for a number of Spice users. The price is going to be comparable to the starting price of N95 8GB, namely around 550 Euros. N95 will slowly phase out of the market, making way for the new flagship (its currently out of production). Liberalization of the telecommunications market has entered a new phase: competition already exists (albeit in limited form) in some markets, such as the long-distance market and the market for Internet access via the STN. Other segments, such as the local loop (essentially the high-speed Internet access market), are being opened up. At this stage, it is no longer simply a question of opening up particular markets, but rather, consolidating the play of competition in those markets that have been opened as well as developing competitive new services. This explains the importance of high-speed access technologies for the future of the sector.
To face up to these challenges, regulatory activity is changing. It is constantly adapting to market trends and to economic situations, which are often difficult. Among its priorities it now counts new economic and social concerns as the information society develops: national coverage is a major issue and Airtel intends to play its part to protect the interests of all consumers.
To this backdrop, a new regulatory organisation is emerging. It must supply regulatory activity with new tools to encourage lasting competition in the telecommunications sector. It must also contribute to the development of a more consistent UP west market that is better able to face up to the challenges of the information society within the context of globalisation.After thorough analysis and interpretation of result obtained I studied overall consumer trends in Spice Telecommunication Ltd. How people react to its services and schemes. How company attract its customer by adopting effective strategies. In the last the conclusion is drawn through this research that being the biggest and oldest network of mobile telecommunication in Uttar Pradesh West, having good quality of service, taking along a big part of people aware about Airtel, it is subsisting hard. For Spice most of customers are professional and business segment.
RECOMMENDATION
The company should go ahead with aggressive marketing. They should light competition on -
1. Awareness level,
2. Product differentiation
3. Customer retention
4. Pricing strategy.
Thus, The recommendations fir these are as follows:
1. AWARENESS
(a)The company should sponsor local programs.
(b)The company should arrange briefing sessions at prominent clubs such as LIONS CLUB and ROTARY CLUBS etc.
(c)The company should organize awareness quizzes through Newspapers, Magazines & announce suitable rewards accordingly.
(d) The company should distribute, leaflets of AIRTEL Cellular in posh colonies of Western U.P.
2. PRODUCT DIFFERENTIATION
(a) In order to build upon the theme of SPICESANSAR the company should try to position itself as a trustworthy and everlasting partner (Offering prompt, better, quality services at the most affordable prices).
(b) The company should highlight its strengths vis-a-vis competition.
3. CUSTOMEIR RETENTION
The company should develop personal /intimate relations with the subscribers:(a)Wishing birthdays
(b)Offering subsidized airtime on festivals.
(c)Giving free lasses to high air time user for the events
Sponsored by the company.
(d)Offering life insurance policy to the subscribers at nominal
Prices.
SUGGESTION
1. Company should provide special offer on time to time.
2. They should be provided every latest information
3. After sale service should be better
4. The company should offer installment facilities on handset.
5. Activation fees should be reduced
6. Credit facilities should be given
7. There should be no billing problem.
QUESTIONNAIREName of organization Address: No of employee:
Name of employee
Address:
Contact No.
1. Are you using any mobile services.
Yes []No []
2. Which operator number you are using.
LG
[]
Sony
[]
Spice []
Blue
[]
China []
Other
[]
3. Sector wise sale Urban
Rural 4. If pre paid, reason behind that
Low exposure []Ease of use []
5. If post paid, Reason for using post paid
High usage
[]Services
[]
Lower tariff rates []All of the above []
6. Which plan you are using in post paid connection?
7. For how long you are using this connection?
8. Reason for associated with the specific operator?
Network []Services []
Call rates []Others []
9. How much is your monthly expense on mobile
Below 300[]Below 500[]
Below 800[]Above 800[]
10. What is the significance of cellular services in your life?
Status symbol []Necessity []
Convenience []Others []
11. Are you satisfied with services of operator you are using?
Yes []
No []
12. If no then reason behind that
Network []Services []
Call rates []
13. Are you thinking to migrate to any other operator in near future.
14. If yes, which one and reason for preference.
15. If you are taking a new connection what would be your 1st preference
thanks for your valuable support
BIBLIOGRAPHY
C. R. Kothari Research Methodology Second Edition, Wishwa Prakashan.
Donald S. Tull, Dell I. Hawkins Marketing Research Sixth Edition, Published by Ashok K. Ghosh, Prentice-Hall Of India Pvt. Ltd.
Business Today paint industry Page 25 March 2005.
Business world growth of Asian Paint Page 35
Feb. 2005.
News papers:-
Date:
Times of India
November 6th 2006
Hindustan times
November 7th 2006
Business standard
February 3rd 2007
The Hindu
March 7th 2007
www.Spice.com www.google.com89
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