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    A

    Project Report on

    Purchase Influencing Factor

    Under the guidance of

    Prof. Kiran RK

    Submitted by

    Ashish Tailor Manoj Sharma

    Reg. No. 520930183 Reg. No. 520952847

    In the partial fulfillment of the requirement

    For the award of the degree of

    MBA

    Marketing

    April-2011

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    PREFACE

    This project provides a student with an opportunity to understand in full

    the real life working environment, which is a bit different from normal

    theory classes. Our class knowledge attains maturity and perfection

    through application in the practical field application of management

    principle in all branches whether personnel, finance, information

    technology etc results in more sufficient and effective utilization of

    Available resources. One learns through practice, management in best

    learn if the students, handles it systematically, practical training issupposed to serve as a starting point will held the student gain off

    confidence and a familiarity with the subject.

    The project is an integral part of MBA course in Institute of Business

    Management and Research (IBMR), Ahmedabad. My topic of study

    was PURCHASE INFLUENCING FACTORS I have no hesitation

    in saying that this study has given me the confidence to face the real

    Market world. I have tried my best to do honesty and justice to the topic

    and any weakness and shortcomings are unintentional and are regretted.

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    ACKNOWLEDGEMENT

    The success behind the completion of any good job is the support and the

    joint team effort of a number of people. There are many persons without

    help and cooperation; this project would not have been successful.

    Guidance, cooperation and inspiration are the important factors in the

    accomplishment of an assigned task. Our deepest sense of gratitude,profound respect and sincere thanks to Prof. & Dr. R.K. BALYAN (Dean

    of IBMR, Ahmedabad) and Academic Director Prof. B.N. Mehta, for

    providing an opportunity of preparing and allowing us to use the

    resources of the institution during this project. Without help, it would not

    have been possible for me to reach this stage of the project.

    Our special thanks to Prof. Poonam Arora project guide who has beenthere for us throughout this entire project. She always had the answers to

    our queries, be it regarding the departmental matters or be it regarding

    any concept or terminology on the field. Their warmth support, practical

    guidance and easy explanations not only regarding the project matters but

    others too add to success of this project. Their continuous interaction and

    support made it possible for the successful completion of the project. At

    last we are obliged with the Institute of Business Management and

    Research, Ahmedabad.

    We would also like to thank our parents and friends for all their time-to-

    time assistance. Last but not the least we would like to thank God

    because without his divine grace nothing would have been possible.

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    Ashish Tailor Manoj Sharma

    Reg. No. 520930183 Reg. No. 520952847

    Bonafide Certificate

    Certified that this project report titled Purcahse Influencing Factorsis the bonafide work ofAshish Tailor (Reg. No. 520930183) and Manoj

    Sharma (Reg. No. 520952847) who carried out the project work under

    my supervision.

    Signature Signature

    Prof. B.N. Mehta Prof. Poonam Arora/ Prof. Kiran

    Academic Director Project Guide

    IBMR, Ahmedabad IBMR, Ahmedabad

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    Examiners Certification

    The project report ofAshish Tailor and Manoj Sharma on Purcahse

    Influencing Factors is approved and is acceptable in quality and form.

    Internal Examiner External Examiner

    Name: - Name:-

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    TABLE OF CONTENTS

    PAGE NO.

    1. Objectives 10

    2. Methodology 11

    3. Vision, Mission and Ambition 12

    4. Introduction of the company 13

    5. Investor relationship 18

    6. History of company 22

    7 Data analysis 28

    8. SWOT analysis 29

    9. BCG Matrix. 44

    10. Ansoff Matrix 45

    11. Porters Model analysis 48

    12. PEST analysis 52

    13. Major players 58

    14. Competitive Tactics of MTS 62

    15. Competitive Analysis 63

    16. Marketing strategy 65

    17. Corporate strategy 68

    18. Products offered by MTS 72

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    19. Servoqual 80

    20. Conclusion 84

    21. Recommendation 85

    22. Annexure & Bibliography 87-93

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    INTRODUCTIO N OF THE TOPIC

    Factors that affect the consumer choice-

    1.Culture

    2. Friends

    3. Attitude

    4. Religion

    5. Price

    6. Advertisement

    Factors that totally influencing the behavior of the buyers.

    Consumer behavior is affected by many uncontrollable factors. Just

    think, what influences you before you buy a product or service? Your

    friends, your upbringing, your culture, the media, a role model or

    influence from certaingroups?

    Culture is one factor that influences behavior. Simply culture is defined

    as our attitudes and beliefs. But how are theseattitude and beliefs

    developed? As an individual growing up, a child is influenced by their

    parents or brothers, sister and other family member who may teach them

    what is wrong or right. They learn about theirreligion and culture, which

    helps them develop these opinions, attitudes and beliefs. These factors

    will influence their purchase behavior however other factors like groups

    of friends, or people they look up to may influence their choices

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    OBJECTIVE OF THIS STUDY

    The Indian communication scenario has transformed into a multilayer,

    multi product Market with varied market size and segments. With the

    basic phone service the value Chain has split into domestic/local calls,long distance players and international long Distance players. Apart from

    having to cope with the change in structure and culture. MTS has to gear

    itself to meet competition in various segments basic services, long

    Distance, international long distance and Internet Service Provision . It

    has forayed into mobile service.

    1. To find out the vision, mission and ambition of MTS

    2. What marketing strategies MTS is implementing to increase the

    market share?

    3. To find competitors of MTS and the market share of the competitors

    4. To find out how MTS react to the technology changes in

    communication sectors.

    5. To find out the factors that affects the purchasing decision.

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    ResearchMethodology

    1. Primary Data Sources-

    Information collected firsthand from such sources as historical

    documents, literary texts, Artistic works, experiments, surveys and

    interviews .These all are the most important Sources to collect the data.

    These data are relevant collected from the primary sources.

    2. Secondary Data Sources-

    A secondary source is a report on the findings of the primary source

    while not as authoritative As the primary sources, the secondary source

    often provides a broad back ground and readily Improves ones learning

    curve. Most text books are secondary sources. They report and

    summarize

    1. Internet

    2. Newspaper

    3. Magazine

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    These all are the major secondary sources for collecting the data, data

    collection by these Methods sometimes are not relevant.

    3. Sampling -

    Sampling is used during the project is cluster sampling.

    Vision, Mission and Ambition

    1. Vision :

    Booming and prosperous India driven by hundreds of millions success

    MTS will be the Driving force for bringing New India into the field of

    opportunities. His drive for progress Arises from our deep urge to

    explore to create to achieve, to change to improve.

    2. Mission :

    Enable New Indias continuous renewal we believe the power of

    connectivity will Provide New India with a new sense of identify and

    opportunity .We will provide the Connectivity in a simple effective and

    affordable manner.

    3. Ambition:

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    We will encourage the use of connectivity to rise above social cultural,

    occupational And economic challenges, thus becoming the undisputed

    champion of those who have The courage to go against all odds.

    COMPANY INTRODUCTION

    Sistema Shyam TeleServices Ltd.

    Sistema Shyam Teleservices Limited (formally known as Shyam telelink

    limited) Limited (STL) was awarded the license to operate Basic

    Telephony Services in Rajasthan under the fixed license fee regime in

    1996. Sistema Shyam Teleservices Limited (formally known as

    Shyam telelink limited) started its basic telephone services in Rajasthan

    under the brand name RAINBOW in June 2000 at Jaipur. The

    company migrated to the Unified License Regime in November 2003. In

    the Unified License Regime, the company can provide basic as well as

    mobile telephony services in the Telecom Circle of Rajasthan.

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    Shyam offers its services in more than 100 cities, and has one of the best

    brand recalls in Rajasthan Shyam offers to its customers, services based

    on multiple technologies, which has been possible because of exhaustive

    optical fiber backbone of over 3,500 Kms. This has helped STLL to grow

    as an integrated service provider.

    Presently the company has received the licenses for all 22 circles in

    India. Sistema Shyam Teleservices Limited (formally known as Shyam

    telelink limited) has brought the best technology to the doorstep of the

    people of Rajasthan. STL has tied up with various world leaders like

    lucent Technologies, IIT Chennai, IBM, Sun Microsystems etc. The

    company is listed on the Delhi, Mumbai, Kolkata, Saurastra, and other

    national stock exchanges .The basic objective of Sistema Shyam

    Teleservices Limited (formally known as Shyam telelink limited) is to

    provide one window access to Basic Telephony, Broadband Internet,

    Entertainment, and E/M- Commerce through high speed state-of-the-art-

    network. Sistema Shyam Teleservices Limited (formally known as

    Shyam telelink limited) is providing connectivity to its subscribers using

    both wireless and wired media in access network. The wireless

    connectivity is being provided using Code Division Multiple Access

    (CDMA), and or CorDECT.

    Russian Telecoms and holding firm Sistema acquired a 10% stake in

    Sistema Shyam Teleservices Limited (formally known as Shyam telelink

    limited) for a total cash consideration of US$ 11.4 million at the end of

    September 2007. Sistema, aims to become one of India's top five mobile

    operators and have 60m subscribers by 2017.Sistema is the largest

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    private sector consumer services company in Russia and the CIS. It was

    founded in 1993, today it has the 7th largest subscriber base in the

    World, and the corporation develops and manages a portfolio of market-

    leading businesses in selected service-based industries. In total,

    companies controlled by Sistema serve more than 80 million consumers

    in Russia, the CIS and Eastern and Western Europe. Sistema's shares are

    listed under the symbol "SSA" on the London Stock Exchange, under the

    symbol "AFKS" on the Russian Trading System (RTS) and the Moscow

    Interbank Currency Exchange (MICEX), and under the symbol "SIST"

    on the Moscow Stock Exchange (MSE).In October 2007, Sistema signed

    a share purchase agreement for the acquisition of an additional 41% stake

    in Sistema Shyam Teleservices Limited(formally known as Shyam

    telelink limited)and a call option agreement, which gives Sistema the

    right to increase its stake in Sistema Shyam Teleservices Limited

    (formally known as Shyam telelink limited)from 51% up to a maximum

    of 74%. the Russian company has been scouting for a foothold in India

    for several years now. Earlier, Sistema had tried to pick up a stake in

    Aircel Cellular, but the deal fell through. It was also in race for

    Hutchison's stake in Hutch-Essar. Sistema, which was founded in 1993,

    is the largest private sector consumer services company in Russia. Later

    in December 2007, Sistema received an approval for the acquisition ofthe blocking stake in Sistema Shyam Teleservices Limited (formally

    known as Shyam telelink limited) from the Foreign Investment

    Promotion Board (FIPB) of India. As a result of the acquisition of

    the additional 41% stake, the overall purchase price totaled US$ 58.1

    million. By June 2008 Sistema has upped its stake in Shyam Telelink, to

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    telephony. The current tele-density trend shows that there is still

    immense potential for Fixed & Mobile Services in Rajasthan province.

    The total number of phones in Rajasthan had surpassed the figure of 9.86

    Million by March 2007. The total phones consists 76% Mobile phones

    and 24% fixed phones. The main competitors in Wire line Fixed

    Telephony are BSNL and Airtel and in Mobile Telephony (GSM

    /CDMA), faces competition from Airtel, Vodafone, Reliance, Tata and

    Idea. The Company is having very aggressive plans to move forward in

    Broadband product category by deploying ADSL network in the state.

    Sistema Introduction:

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    Sistema is the largest public diversified corporation in Russia and in CIS,

    which manages fast growing companies operating in the consumer

    services sector and has over 100 million customers. Sistema develops and

    manages market-leading businesses in selected service-based industries.

    Since its inception in 1993 Sistema has evolved into an international

    group with expanding geographical representation focusing on consumer

    services, through organic as well as inorganic growth. Subsequent to an

    IPO in February 2005, 19% of its shares are traded on London Stock

    Exchange in the form of Global Depository Receipts (GDR) under the

    symbol SSA. It is also listed on the Moscow Stock Exchange and the

    Russian trading System.

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    I nvestor Relations :

    Sistema Shyam Tele Services Limited Equity Structure:-

    Sistema (LSE : SSA)

    73.71%

    Shyam Group 23.79%

    Public 2.5%

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    ABOUT THE COMPANY

    Sistema Shyam Tele Services (SSTL) is a joint venture company

    between Sistema {LSE: SSA} of Russia and Shyam Group of India.

    Sistema is the majority share holder in this joint venture with a 73.71%equity stake, along with the Shyam Group, holding a 23.79% stake and

    the rest 2.5% being public partake. SSTL has spectrum to provide mobile

    telephony services in all the 22 circles across the country. Presently

    SSTL offers mobile telephony services in the Rajasthan, Tamil Nadu,

    Kerala as well as the Kolkata circles. In a recent development, SSTL tied

    up with Mobile Tele Systems OJSC of Russia to bring the globally

    acclaimed telecom brand-MTS-to India. MTS is the 8th largest telecom

    brand in the world and has recently been voted as the 71st ranked brand

    out of 100 top global brands in the world by Mill ward Brown.

    GROUP STRUCTURE

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    On August 14, 2006, MTS Board of Directors unanimously approved

    the implementation Of the Companys new management structure in

    order to strengthen the strategic and Operational functions through the

    creation of a simple and transparent structure. The change appropriated

    fiscal responsibility on the business unit level through the Introduction of

    KPI targets required to be completed by the respective management.

    The structure now includes:

    Corporate Center with control over strategic and investment

    decisions, as well as brand development, on Group level.

    Business unit MTS Russia with control over operations in

    the ten macro-regions;

    Business unit MTS Ukraine;

    Business unit Foreign subsidiaries with oversight over

    MTS operations in Uzbekistan, Turkmenistan, Armenia and Belarus.

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    COMPANY PROFILE:

    MTS is the leading mobile phone operator in Russia and CIS. A top 10

    global mobile operator. One of the 100 most powerful brands in the

    world. MTS, together with its subsidiaries, expanded its total subscriber

    base to over 95 million as at december31, 2008.

    The Russian regions together with Ukraine, Uzbekistan, Turkmenistan,

    Armenia and Belarus, in which MTS and its associates and subsidiaries

    are licensed to provide GSM services, constitute a total population of

    more than 230 million people. Continued development of our value

    added services (VAS) and high speed networks.

    It is focused on delivering the highest quality products and services to its

    customer base, Including VAS services such as: Voicemail, Text, SMS,

    MMS, Internet, News, Entertainment, Email, Ring-back tones etc. MTS

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    this joint venture with a 73.71% equity stake, along with the Shyam

    Group, holding a 23.79% stake and the remaining 2.5% being held by the

    public. SSTL has been allocated spectrum to provide mobile telephony

    services in 22 circles across the country. Presently SSTL offers voice &

    data services in Rajasthan, Bihar/Jharkhand, Kolkata, West Bengal &

    Sikkim, Chennai, Tamil Nadu, Kerala, Karnataka, Mumbai,

    Maharashtra/Goa, Haryana/Delhi & NCR. With the launch of the Andhra

    Pradesh circle, SSTL will be in 12 circles.

    Highlights

    MTS, the mobile telecom service of SSTL, has seen its subscriber

    base cross Million in April 2010 and the numbers continue to grow

    exponentially.

    MTS has completed a year of its operation in India in March

    2010. It is the fastest growing telecom brand in the country.

    The high-speed mobile broadband service, MBlaze, was launched

    in November 2009 and has seen tremendous market acceptance with

    over 70,000 satisfied customers in a Short span of time. In April

    2010, MTS launched MTS TV for MBlaze customers.

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    SSTL was the FIRST telecom company to launch mobile

    broadband internet services with speeds up to 3.1 Mbps in Jharkhand

    in April 2010.

    MTS unveiled its green data centre in Chennai in April 2010.

    In April 2010, Sistema JSFC has been recognized as the Best

    Russian company of 2009 operating i

    MTS now has 5 Million subscribers n India.

    .

    Gurgaon, India - 23 June 2010. MTS, the mobile telephony services

    brand of Sistema Shyam Teleservices Limited (SSTL), has crossed the

    milestone of 5 million subscribers In India. To mark the milestone

    achievement, MTS has offered Unlimited MBlazer to the new and

    existing customers of its mobile broadband service, MBlaze. Brand MTS

    has notched up a milestone subscriber base, increasing from 1 million To

    5 million subscribers in just 361 days. MTS also launched its data

    services in November 2009 and already has over 100 thousand

    subscribers.

    Commenting on the occasion, Mr. Vsevolod Rozanov, President and

    Chief Executive Officer of SSTL said, This achievement is a reflection

    of the speed and spirit of MTS to achieve its special place in Indian

    market. We are determined to offer the new data products, further

    enriching their telecom experience.

    On this special occasion MTS is launching a Special Offer for its

    increasing and loyal customers. MTS mobile high speed internet service,

    MBlaze will be introducing another innovative product Unlimited

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    MBlazer with which customers can avail unlimited data access for 30

    days at a price of Rs 999/-. This is a first of its kind offering in wireless

    high speed data services and is applicable for new and

    Existing users.

    Speaking on the achievement, Mr. Leonid Musatov, Chief Marketing

    Officer of SSTL said, We are proud to have been able to reach out to 5

    million Indians through Our products and services. As a special token of

    gratitude for our loyal customers, we will be offering the special voice

    and data products for our existing and new subscribers.

    MTS is continues to expand its presence across India by offering quality

    voice and data services at the most competitive and affordable price.

    MTS is a front-runner in introducing world-class, cutting-edge

    technologies in India to enhance the customers experience. The current

    EVDO technology is at par with the 3G services, which are yet to be

    rolled out by other telecom operators. MTS has recently been conferred

    with Fastest Growing Data Operator Award by CMAI at the National

    Telecom Awards 2010.

    [Shyam Sistema] CDMA Wireless service provider in a release just

    minutes ago has created history in India offering FREE calls to all MTS

    subscribers within Rajasthan for a whopping 999 days. Offer valid for

    new as well as existing customers on recharging for Rs 999 where in you

    will get talk time worth Rs 500 and Lifetime.

    Using MBlaze dongles and HSD (high speed data) compatible handsets,

    MTS customers can enjoy live and on demand video; high quality audio

    or video downloads; and can access news, entertainment, sports and

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    MBlaze also offers free surfing on popular websites such as Yahoo,

    Wikipedia and Make My Trip.

    The company has tied up with Hewlett Packard for a deal, according

    to which if you purchase an HP laptop, you can get MBlaze post paid

    or pre paid for Rs 1,000.

    MTS India the CDMA teleservices from Sistema-Shyam Teleservices

    Limited (SSTL) has planned to roll out postpaid plans

    in Rajasthan circle. MTS India, is a new player in the sector and

    within a short span of just 18 months, MTS has shocked the

    marketing gurus by attracting as many as 3 million subscribers in

    eleven circles which include Chennai, Rajasthan, Kolkata, Delhi andKarnataka to name a few.

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    Postpaid Plans

    MBlazer Unlimited 999 RCV Rs. 999/- unlimited usage with a

    validity of 30 days

    Mblazer Unlimited 999 FRC Rs. 999/- unlimited usage with a

    validity of 30 days

    MTS Dealers in Gurgaon:

    MTS Broadband service available in Gurgaon, the Sixth largest city ofIndia located in state Haryana. Gurgaon is the well known financial

    center. Here is the list Of MTS Broadband Dealers in Gurgaon city and

    nearest areas.

    MTS Dealers in West Bengal:

    West Bengal, the fourth most populous state of India, will experiencethe hi speed Broadband Internet connection with unlimited plans and

    speed of 3.1 Mbps. MTS broadband is the Broadband service provider in

    India with very good speed and at affordable Tariff.

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    http://www.mtsbroadband.com/mts-dealers-gurgaon-2http://www.mtsbroadband.com/mts-dealers-west-bengalhttp://www.mtsbroadband.com/mts-dealers-gurgaon-2http://www.mtsbroadband.com/mts-dealers-west-bengal
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    MTS Dealers in Salem:

    Salem is another major city of Tamil Nadu state with population more

    than 15 lakh. MTS has its mobile as well as broadband service in Salem

    City .MTS Offers Hi Speed wireless internet with speed up to 3.1

    Mbps.

    MTS Dealers in Faridabad:

    Faridabad is the district place in Haryana located near Delhi. Now MTS

    Broadband Mblaze service is available in Faridabad. with 3.1 Mbps

    Speed.

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    http://www.mtsbroadband.com/mts-dealers-salemhttp://www.mtsbroadband.com/mts-dealers-faridabadhttp://www.mtsbroadband.com/mts-dealers-salemhttp://www.mtsbroadband.com/mts-dealers-faridabad
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    1. Are you aware of of MTS product?

    This survey represents that 82 respondent are aware of the MTS product.

    2. If yes how do you come to know about this product?

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    After analyzing this graph we can say that advertisement is major factor

    .People came to know about MTS by advertisement.

    3.Have you used MTS product?

    This survey represent that 46 respondents used this product but 54

    respondents never used this product.

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    3. If you are a customer of the MTS product. How long have you been buying it.

    \

    This graph represents that 7 have been using it since 6 month,11 have been using

    from 0- 1 year,13 have been using it from 1-2 year and 15 have been using since 2

    years.

    4. Do you think the advertisement of MTS product has major influence in your

    buying decision

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    13 respondent are agree that advertisement has major role in buying the MTSproduct but 11 are average.

    5. Please specify about the following factors which influence your purchase

    decision.

    Quality is major factor to buy this and afterward family and friends opinion is change

    our decision.

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    6. Please specify your satisfactory level of MTS product based on

    the following features.

    1..price 2.quality 3.brand name 4.availability 5.speciality

    11 respondent are satisfied by its brandname ,but 11 respondent are

    satisfied by its high quality.

    7. How satisfied are you with MTS product compared with others in

    the market?

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    13 respondent are highly satisfied,but 12 are dissatisfied after using this

    product.

    8. Has your friend/ relative opinion influence you to by MTS

    product.

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    SWOT ANALYSIS

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    Strengths of the company :

    Experience in Russia:

    MTS is having a huge experience in this field of business as they have

    been showing their presence since 1993 and a great customer experience

    in Russia and in other countries. Experience of MTS will help huge

    market.The cellular telephony market is presently expanding at a

    phenomenal / whopping rate every year and there is still vast scope for

    MTS to enter /expand in thismarket.

    Other opportunities:

    India is the second-largest telecommunications market in terms of sheer

    numbers of potential subscribers, and one of the fastest growing in the

    world .An expand in Indian economy with increased focus on the

    services sector. Population mix moving favorably towards a younger

    age profile. Urbanization with increasing incomes.MTS can cover all the

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    22 telecom circles of India through its adequate strategies n Investment

    in network Coverage. Creating customer awareness of its products

    through advertising them to plan their strategy for Indian market

    accordingly.

    Pan I ndia footprint :

    MTS is going to offer the most expansive roaming network. Letting you

    roam Anywhere in India with its Pan-India presence, and trot across the

    globe with International Roaming spread in over the networks. The

    mobile services group Provides CDMA mobile services across India in

    11 telecom circles.

    Low tariff plan:

    MTS is coming with one of most cheapest tariffs in telecom sector by

    providing paisa second call and in some region plan gets even cheaper

    paisa 2 seconds.MTS is also launching a very different and attractive

    Scheme i.e...100000 minute free talk time with every new connection.

    Innovative schemes:

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    Sistema Shyam Teleservices have launched a special offer in Rajasthan,

    wherein a MTS mobile customer can make unlimited outgoing calls to

    any MTS mobile within the state for 999 days just by paying Rs. 999.

    Weakness of this company

    New e ntrant in Indian Telecom Market :

    As MTS is a new entrant in the Indian telecom sector not having a good

    customer base, it will face to a cut throat competition from competitors..

    Price competition for TATA and AIRCELL :

    MTs will face competition from TATA and AIRCELL because they are

    also having some better scheme than MTS.

    DOCOMO is providing paisa second to almost all the circles by justgetting a voucher. AIRCELL is also coming up with very attracting

    packages with low tariffs.

    Least Brand Retail in customers mind in India:

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    As the company is a new entrant in the Indian cellular market customer

    will have a perception of had network and not a good customer service.

    Less Network coverage across telecom circle s of India :

    As MTS is spreading its network coverage very fastly amongst all the

    circles when they operates but still it is facing a had network coverage

    problem.

    Opportunities for the company

    Latest technology and low cost advantage:

    MTS can enjoy its latest technology and low cost advantage. The number

    of cities, towns and villages it has covered already works to its advantage

    as putting more base situations for cellular coverage in these area comes

    with negligible marginal cost. Besides such cost advantages, it has also

    other cost advantages for the latest cellular technology.

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    Huge market:

    The cellular telephony market is presently expanding at a phenomenal /

    whopping rate every year and there is still vast scope for MTS to

    enter /expand in this market.

    Besides there is a vast rural segment where the cellular service have not

    made much head way and many customers are looking towards MTS for

    providing service to them. With its presence even in the remotest areas,MTS can gain a big market share in this segment.

    Other opportunities:

    India is the second-largest telecommunications market in terms of sheer

    numbers of potential subscribers, and one of the fastest growing in the

    world .An expanding Indian economy with increased focus on the

    services sector. Population mix moving favorably towards a younger age

    profile. Urbanization with increasing incomes. MTS can cover all the 22

    telecom circles of India through its adequate strategies n Investment in

    network Coverage.

    T hreats for the company

    Competition from other cellulars :

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    It is time for MTS to improve/expand its cellular services.

    Fierce and cut-throat Competition is already in place with the markets

    ever abuzz with several tariff reductions an announcement of attractive

    packages, trying to grab most of the mind share of the king- the

    consumer, whose benefits are increasing with passing of everyday. If

    MTS will not be innovative and agile, its cellular service will be a flop. It

    needs to be proactive with attractive packaging, pricing and

    marketing policies lest its presence in the market be treated with disdain

    by the private cellular companies. The launch of WLL services by

    Reliance communication has aggravated the situation.

    Other threats :

    1. A new entrant in the market.

    2. Less product awareness in the market.

    3. Brand perception.

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    BCG MATRIX FOR MTS

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    BCG Matrix is used to find out the relative growth prospects

    of the product line MTS lies in Question marks category because it

    market growth is high but its current Market share is low. Company has

    to decide whether to move to cash cows category or to Stars category

    with high market growth and high market share.

    ANSOFF MATRIX

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    To portray alternative corporate growth strategies,IgorAnsoff conceptualized a matrix that focused on the firms present

    andpotential products and markets /customers.

    He called the four product-market strategic alternatives.

    Market penetration (existing market + existing product),

    Market development (existing product + new market),

    Product development (existing market + new product), and

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    Diversification (new product + new market)

    The company should follow all four strategies depending on the demand

    and Product as indicated in the matrix. The company perhaps needs to

    focus more on the comparatively neglected area of diversification.

    Market penetration:

    Market penetration is the name given to a growth strategy

    where the business focuses on selling existing products into existing

    markets. As it is been clear from the above definition that market

    penetration is the strategy were company try to maintain their share

    in the existing market with their existing products .As MTS is a new

    entrant in the Indian cellular market, SO they are not into the market

    penetration strategy.

    Market development :

    Market development is the name given to a growth strategy where

    the business seeks to sell its existing products into new markets. As MTS

    has target a new market for its product so they are following the market

    development strategy in which they have exported there product to India.

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    Company has already made its presence in Uzbekistan, Belarus, Russia,

    Ukraine, Armenia, and Turkmenistan and now in India.

    Product development:

    Product development is the name given to a growth strategy

    where a business aims to introduce new products into existing markets.

    About product development we are not sure whether they follow the

    product development strategy or not.

    Diversification:

    Diversification is the name given to the growth strategy where

    a business markets new products in new markets.

    PORTERS MODEL :

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    The industry structure has become relatively unfavorable compared to

    earlier monopolistic time in Russia and other countries where MTS

    operate

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    distance carriers, and those that provide only gateway links. Some

    integrated players operate in all segments. The intensity Of competitive

    pressures across the chain is reflected in the downward spiral being

    Witnessed in tariffs and prices to customer. The value chains for cellular

    mobile service and Internet Service Providers (other than cable based net

    connections) are similar in as much as the calls reach the destination

    through similar local loop, long distance and international gateway.

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    PORTERS ANALYSIS

    Threat from competitors : (High)

    As there is a huge competition in the market, MTS will face a

    cut throat competition from its well stabled competitors, As reliance is

    already there in the CDMA market with more than 3.95 % of market

    share.

    Customer bargaining power : (High)

    Lack of differentiation amongst the service providers:

    MTS provides the same service what others provide this lack ofdifferentiation gives customer a edge to bargain with service provider,

    they can switch to any other provider any time they want. Cut throat

    competition also offers a great deal to bargain. And the switching cost is

    also very low; all these situations are creating problems in the growth of

    company.

    Suppliers bargaining power: (Low)

    Bargaining power is the ability to influence the setting of

    prices. The more concentrated and controlled the supply, the more power

    it wields against the market.MTS will have a variety of suppliers to

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    choose from, because most of the suppliers would be eying to get the

    contract to be the supplest of the company. Branded suppliers are having

    a bargaining

    Power because their products have captured the vast market, As the

    switching cost is very High in this field which gives company a strong

    point.

    Threat of substitutes: (High)

    Market for MTS, Because there are already players exist with a huge

    market share with bet the threat of the substitutes for MTS is very high

    in Indian brand perception ,It will take time for MTS to win the trust of

    its customer and gain market share.

    Buyers willingness is very low about the company,

    substitutes are there and they are very strong in the market. Performance

    of the substitute is very in the market so MTS will have to prove they

    have strong competitor to survive in the market.

    Threat of new entrant (High)

    Threat of new entrant is always there for a company as

    MTS is itself a new entrant In the cellular market, if any other provider

    enters the market with a new strategy that will affect the overall strategy

    of the company, cost of infrastructure cost will go and other cost will also

    go up with this.

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    PEST ANALYSIS

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    It is a systematic examination of all 4 levels of the environment with at

    least three purposes: Detecting important economic, social, cultural,

    environmental, health, technological, and political trends, situations, and

    events.

    Identifying the potential opportunities and threats for the institution.

    Implied by these trends, situations, and events. Gaining an accurate.

    Understanding of your organizations strength and limitations.

    A PEST analysis of the macro environment indicates that economic (a

    phone call being a cheaper way to stay in touch than outstation travel

    For example) and social factors (working outside the home town) have

    Forced the pace of utilization of technology (Public Call Offices, mobilePhones, networked companies).Increasing customer awareness Has

    raised expectations and vocal demands are being articulated for

    consumer rights; such political factors have in turn impacted the

    competitive environment by way of entry of private players, independent

    regulation, and a policy framework tilted towards a level playing field for

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    new entrants. A near environment analysis indicates that the competitors

    are becoming active resource rivals (political and financial) apart fromapplying. Pressures as customer rivals. The Customer has, needless to

    say, benefited from increased choice from within the communications

    services basket itself.

    Political factor :

    High entrant fees in 3G market:

    In India legal obligations are there regarding 3G auction and bidding

    which limits it to the existing players and not available to the new

    entrants this political factor forbids the MTS entry in to 3G services.

    Reduction in tariff plan :

    Earlier the tariff rates were higher due to high taxes, but now it has

    become lowest in the world by tax reforms.

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    Extension of license period :

    Government has replaced the license fees with revenue sharing scheme

    And extended the license period from 10 year to 20 years. A company

    Can merge with another operator only after 3 years of receiving license.

    This rule can be eased to help MTS merge with established players.

    Economical factor:

    India has a very high potential in all areas of its economy, it is one of the

    Most vibrant and fastest growing telecom market in the world enjoys the

    Sturdy growth rate of 10 million mobile users every month .India

    has a moderate but still a healthy growth rate which will provide a good

    Base for MTS to grow with growing economy.

    The Gross Domestic Product (GDP) in India expanded at an annual rate

    Of 7.20 percent in the last quarter.

    Inflation rate is also a key factor for MTS as inflation rate is 16.22% in

    India, company is keeping this factor into the consideration to get the

    Most of the benefits. Another economic factor for MTS will be the Cost

    of 3G license, as in India the cost of getting a 3G license is Very high.

    Social factors :

    Perception of new entrant in the market:

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    As MTS is a new brand in the Indian market it will be facing problemsRegarding the perception of a new entrant, this image will adversely

    affect the buying capacity of customers, they will think about the

    Network, and the kind of service they will get after sale.

    Social status:

    Anything customers buy that reflects their social status ,as MTS does

    Not have a reputation in this market although it has a strong customer

    Base in Russia and a great image of its products ,people will be

    conscious about their social status this will affect companys growth

    adversely.

    Word of mouth advertising:

    Company will have a threat of mouth advertisement in which people will

    Get to know about the companys performance it can affect the growth

    Of the company.

    Other social factors:

    MTS is employing young and dynamic professionals to attract young

    Generation .MTS are focusing on the neglected segments of the society,

    Providing mobile PCO (chalta phirta PCO) to physically challenged

    Individuals. Connect A-school A, Hospitals coin collection boxes and

    Information kiosks at airports and bus stands.

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    MTS is focusing its attention on society such as family, friends,

    Colleagues, neighbors and the media by providing attractive schemes.MTS is targeting the young generation in the country.

    Technological factor:

    The business in a country is greatly influenced by the technological

    Development. The technology adopted by the industries determines the

    type and quality of goods and services to be produced and the type and

    quality of plant and equipment to be used.

    As MTS has seen its competitors and the kind of technology being used

    By them, so company is aiming to come up with something new that is

    Not been available to its competitors.

    MTS use its technology in many ways, they have:-

    MTS is the only company with CDMA technology based services.

    Other CDMA players in the countryalso have GSM spectrum.

    3G Technology:

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    MTS is all set to launch third generation (3G) technology-based mobile

    TV services in the country over the next few weeks. Though otherCellular providers have also launched mobile TV services, the uptake

    Has not been great since most of the existing offerings are based on a 2G

    Platform.

    GPRS /WAP:

    MTS Connect service provides a simple and convenient access to

    the Internetthrough the technology of data transfer GPRS/EDGE.

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    M ajor Players in Telecom Industry

    1. RELIANCE

    2. BHARTI AIRTEL LIMITED

    3. TATA TELESERVICES

    4. IDEA CELLULER

    5. VODAFONE

    6. BSNL

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    Analysis of telecom players

    Telecom industry is a vast field today we include fixed phone, wireless

    phone, internet service, VSAT, DTH and service providers in telecom

    industry but for my convenience I focus only wireless phone service

    only. In wireless service there are many companies out of them few are

    below---

    1.RELIANCE COMMUNICATION

    Reliance Communication Limited is a part of the Reliance Anil Dhiru bhai Ambani Group. Reliance Communication is Indias largest

    integrated fully Converged communications service provider in the

    private sector with an individual, enterprise & customer base of over 40

    million. Reliance Communication is one of the top two operators in the

    Indian wireless market, the largest growing wireless market in the world.

    Reliance com is one of the largest wealth craters with market

    capitalization of over Rs.1, 00,000 Cr.

    Reliance Communication has the largest capacity network in the country,

    the most future ready integrated and converged network that can support

    even following 3G, 4G telephony and broadband services. More than half

    of the Worlds population connects with each other on the Reliance

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    network. Every Third call that comes in India is carried on Reliances

    network. Reliance Communication is the preferred network of over onemillion customers in USA, UK, Canada, Australia and New Zealand.

    2.AIRTEL

    Bharti Airtel Limited is a leading Indian telecommunication service

    provider with 49.01 million customers. The company has three strategic

    business units i.e. mobile services, broadband and telephone services

    and enterprise services.

    Mobile services unit consists largest portion of the company business,

    both in terms of total revenues and total customers, Bharti, Airtel offers

    mobile services In all 23 telecom circles of India and is therefore the first

    private mobile Services operator to have an all India presence. The

    Companys mobile Customer base accounts for a 22.9% share of the

    overall wireless (GSM+CDMA) market as on march 31, 2007 and has a

    presence in 4676 census towns and in 2,07,327non-cenus towns and

    villages, covering an addressable population of 59% of the total

    population.

    Broadband and Telephone Services (B&TS) provides a wide gamut of

    voice And data services through a wire line network. Bharti Airtel is the

    first private Operator to provide fixed line and broadband services over

    the same copper Wire. It provides innovative, cost effective solutions for

    corporate, small business enterprises and individual homes. Given the

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    high cost of creating a Wire line network, B&TS has adopted a focused

    approach to network creation and customers acquisition. CurrentlyB&TS provides services in 94 cities Across 22 telecom circles. The unit

    had 1.75 million voice customers. It has a capacity of more than 3

    million tags with a cumulative investment of over Rs.40 bn.

    3. TATA INDICOM

    TTML is a part of the Rs. 1, 20,000 crore (US $ 29 billion) Tata group

    that has over 87 companies, over 3, 30,000 employs and More than 2.8

    million shareholders. Most of the people think that TTML and TATA

    Indicom both are the same companies but it is not true, TTML is a listed

    Company and it is a SBU of TATA Indicom, and TTML presence in

    Maharashtra and Goa only.

    Formally huge tele.com (India) ltd. That company was renamed to Tata

    Teleservices Maharashtra Limited, subsequently to the acquisition of

    70.85% equity shareholding by Tata group in December 2002.

    TTML provides mobile, fixed wireless phone (FWP), public telephone

    booths and wire line services. Broad band data network & application

    services include leased line, DSL, Wi-Fi, Ethernet, managed gatewayservices and conferencing services. TTML is a market leader in

    commercial, residential and PCO market in Maharashtra circle.

    4. IDEA

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    MTS is offering all these services at cheap and affordable prices as

    compared to its competitors in order to break through the telecommarket captured by its competitors.

    COMPETATIVE ANALYSIS

    COMPETITR ANALYS

    Service provider Subscribers market share in %

    Share in % Revenue market

    1 BSNL 12% 9%

    2 Reliance 17.90% 15.20%

    3 Bharti 22.60% 29.10%

    4 Vodafone 17.4% 20.8%

    5 Idea 11% 12.7%

    6 MTNL 0.16% 2.80%

    7 TATA 9.3% 7.2%

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    8 Aircel 5.90% 4%9 MTS 0.02% 0.03%

    10 Spice 2.49% N.A

    11 HFCL 0.10% N.A

    As it is clear from above data that MTS has to go a long way because

    Players already exist in the market having strong and huge market share

    With latest technology and with better customer services, As MTSs close

    Competitors are Tata Docomo, Aircel and Spice with a strong customer

    Base and a better market share of 9.3%, 5.90% and 2.49% where MTSs

    Market share is only02% .Close competitors are having similarities in

    Their services as Tata Docomo provides the same call rate toits

    Subscribers as MTS provides and Aircel also have some innovative

    Schemes like pocket internet and targeting the young generation of the

    Market as MTS has done, MTS is planning its strategies

    accordingly.MTS is coming up with more creative ideas by providing

    Services at low tariffs and innovative schemes like 1000000 minutes on

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    Every new connection to capture the market. Currently MTSs revenue

    Share & market share is .02% & .03%.To outflank the competitors.

    MTS is trying to be as faster as they can in terms of covering the market

    By entering all the circles, currently they are present in 11 circles of

    India and expanding very fast.

    MARKETING STRATEGY

    NG STRATE

    The brand was developed to attract customers in variety of culture and

    socio-Geographic and income segments with a consistent message of

    quality and leadership. To facilitate the further growth and recognition ofthe brand, MTS recently adopted new brand standards to communicate

    the brand consistently in all massaging and reinforce its perception as a

    strong trustworthy and quality focused company.

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    MTS developed its products to meet the customers needs beyond the

    cultural, socio-geographic and income constraints.MTS studied the current market scenario in Telecom market and

    designed its strategies and product development according to the

    prevalent conditions in the market.

    MTS created its brand awareness among customers by large scale

    promotions in forms of advertisements on TVs, newspapers and

    hoardings across cities.MTS is trying to create a good image in

    customers mind as a strong, trustworthy and quality focused

    company.MTS broken through the fierce competition in telecom market

    as it says Badlo life ka plan.

    To break through heavy competition in telecom market by launching its

    cheap calling plans and affordable internet connection services.MTS is

    adopting various effective promotional schemes like Advertising

    On TVs, News papers and hoardings on Metro stations and highways to

    attract Customers attention.

    CORPORATIVE STRATEGY

    MTS primary goal is to be the leading communication operator in India,

    Providing its customers with mobile and high internet access at home and

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    on the move. For this company is trying to move beyond the mobile

    access. The development of MTS beyond mobile access is part of ourstrategic.

    Initiative 3i Companys direction is basically based on three main

    principles:

    Integration

    Internet

    Innovation

    Integration :

    In integration company is basically trying to develop new pipeline sand

    Customer touch points .company aims to provide comprehensive

    integrated service portfolio for all of their customers. Communication

    needs, through both fixed line and wireless access. The networks and

    platforms company is developing will create a seamless and

    unsurpasseduser experience.

    Internet :

    For internet facilities company is trying to offer universal connectivity to

    its customers because customer increasingly expects faster and broader

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    Connectivity. Company is trying to create smarter pipelines so the

    customers can realize full benefits of todays technology and to competewith other brands.

    Innovation :

    Differentiating MTS from its competitors by offering a unique mix of

    products and services, MTS will offer exclusive devices, distinct

    packages and services.

    Principles and strategy

    In order to become a socially responsible business, MTS adopts certain

    key principles which aim to advance the stable development of society,

    an increase in prosperity and the establishment of a competitive

    economy. The expectations of all outside parties that MTS deals with

    were taken into account in establishing these principles. They represent along-term commitment of MTS to socially responsible business

    practices.

    Responsible business practices:

    MTS works hard to achieve its responsible business practice principles.

    MTS plans and executes its business activities in such a way that it has

    succeeded in bringing about changes in society, has improved the social

    climate. Society.

    Responsibilities of a mobile operator:

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    As the largest mobile operator in Russia and the CIS, MTS main

    responsibility is to provide all users with high quality, innovative andaffordable products and communication infrastructure services.

    Equal opportunities:

    We make a committed investment to the business of creating equal

    opportunities for all. We are committed to providing everyone with the

    same access to modern technology, innovative products and services so

    that everyone can realize his/her potential. One of the key features ofMTSactivities in this respect is the creation of the same conditions and

    opportunities for people living both in remote regions of the country and

    in large cities.

    Innovation:

    We believe that it is possible to achieve our aim of improving the quality

    of peoples lives through the universal and wide-ranging introduction ofInnovative technologies, products and services. The spread of innovation

    and its use in everyday life engenders an innovative way of thinking,

    which in turn stimulates the development of society, encourages

    economic growth allows countries and global societies to integrate and

    creates the successful society of the future.

    Encouraging economic growth and a prosperous society:

    MTS growth strategy is based on significant investment in the

    development of the countrys telecommunication infrastructure. This is

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    essential for key strategic products to be successful on a country-wide

    level. As the largest mobile operator in Russia and the CIS, MTS strivesto develop the advanced technological segment of the economy and to

    make the country more attractive for investors.

    MTS supports government initiatives aimed at improving quality of life,

    increasing the prosperity of society and each of its citizens. We cooperate

    with the government to realize these initiatives.

    Responsibility to the society at large:

    All of MTS local activities are based exclusively on the local legislation

    in force and the legal norms of the relevant governing bodies, health and

    safety standards and labor rights.

    Long term investment:

    We understand that investment in social development is a long term

    investment. This activity not only encourages the development of societybut also creates the conditions for the Company to enjoy stable growth.

    Oriented towards results:

    One of the key principles of MTS with regard to social policy is its

    commitment to achievable and measurable results. As far as our

    Company is concerned, this means putting into practice our policy of

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    meaningful social investment. Such investment always has a planned

    result and is aimed at solving the most pressing social problems, alwayskeeping societys best interests in mind.

    Access to information:

    We recognize that an essential condition for our social policy to be

    realized effectively is to maintain constant dialogue with representatives

    of our partners and consumers. MTS is willing and interested in holding

    this dialogue. As a public company, we keep society informed aboutaspects of our business activities in accordance with the regulations of

    the Russian legislation and international standards of public companies.

    One basic instrument we can use to keep society informed about our

    social activities is annual social responsibility reports. We plan to

    introduce this practice and our reports will be published on the

    Companys website for public access. MTS policy on social

    responsibility is based on a constant analysis of the current business

    processes of the Company and the extent to which they conform to our

    socially responsible principles. We plan and execute projects over and

    above the legally required minimum, and our aim is to increase the

    positive influence that MTS can have on society. Our constant aim is to

    increase the effectiveness of our social policy. Therefore, we carefully

    study the best Russian and global practices in social responsibility and

    remain open to cooperation with experts and investment organizations.

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    Products offered by MTS:

    MTS has three products in wireless broadband segment:

    1. Mblaze Premium

    Plug & Play enabled

    Speed up to 3.1 MBPS

    Fastest upload at a speed up to 1.8 MBPS

    2. Mblaze Standard:

    Plug & Play enabled

    Speed up to 3.1 MBPS

    Fastest upload at a speed up to 2.0 MBPS

    3. Mbrowse:

    Plug & Play enabled

    Speed up to 3.1 MBPS

    Cutting edge CDMA 1x technology.

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    Product:

    Product of a company includes its finished product readily available in

    the market for customers purchases.MTS has launched its various

    products in the market like its connection kits, wireless USB Modem i.e.

    Mblaze and mobile handsets, MTS is offering these product to provide

    services, as per now company has recorded a good response from its

    customers and continually coming up with different schemes to attract

    more customers. As MTS says that their product is strong as compare to

    its competitors but they need some time to grab the audience, as

    company has shown strong presence wherever they have started their

    operations. Their product is strong because of their low tariffs and

    innovative schemes like get unlimited MTS to MTS minutes free for 999

    days by just investing 999, and 1000000 minutes free on every new

    connection. Company will offer their products and services in future as

    well.

    Price:

    As per the examination done by the MTS before pricing its product, earlier

    Company was planning to come up with an idea of 1 paisa a second call

    with a slogan of pay for seconds you talk but they rejected this scheme

    when they saw a Air cell and other service provider coming with the same

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    the company decided to offer a paisa second call, which no one else is

    providing except Tata Docomo, is also having some obligations to get thecalls at a paisa second.Company has also priced its internet data card,

    as the MTS is providing two data cards one as they call it standard data

    card priced for Rs 1999 and other premium data card priced for Rs2299.

    As of now company is not focusing much on its profitability as they want

    to build a strong customer base in India as they have built in other

    countries, company is sticking with their pricing strategy and not

    planning to raise the prices of their products.

    Promotion:

    Promotion is the life of any company and same for the MTS, company is

    trying to grab the market by their promotion of 10, 00,000 minutes free to

    new subscribers of MTS and this strategy seems working for them, apart

    from this strategy company is planning to sign a celebrity to create an

    image in the mind of the target audience, company is also targeting the

    road side hoardings and advertisement in television and on radios.

    Place:

    Place is also a major determinant for a products success or failure.MTS is

    now setting up in India and targeting the Indian youth by providing low

    tariff plans and various internet services. MTS has launch edits various

    products in Major metro cities like Delhi, NCR, Kolkata, Mumbai and so

    other. Company has also targeted the rural area of the country like Bihar

    .Distribution part of MTS comprises of a chain of distribution i.e.

    Manufacturer-distributor-retailer-consumer.MTS connections are

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    available in most of telecom retail shops in various major cities like

    Delhi and Mumbai.

    People:

    People refers to the individuals associated with the company and who are

    Affected with the decisions of the company. MTSs people includes its

    Employees, its stakeholders, its loyal customers.MTS is trying to retain

    its

    talented and skilled employees and motivate them by incentives and

    making them comfortable in professional environment.MTS is attracting

    new customers by providing luring schemes and low tariffs and seeking

    forward to retain them by their excellent services and schemes.

    Process:

    In case of MTS, the process includes bringing its products i.e.

    Connection kits and wireless broadband USB modem in the market for

    customers.

    Physical evidence:

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    In case of MTS physical evidence includes tangible products that reach

    the hands of final customer, i.e. sim cards, modems, cell phones etc.these products are the first and the most important evidence of

    companys service and commitment to the customers.

    Company uses the model :

    Manufacturer distributorretailerconsumer

    This model is being used by the company to serve its customer. companyis trying to make the functioning of their system as smoth as they can to

    deliver best services .

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    SERVICE GAP MODEL

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    SERVOQUAL

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    1. Reliability:

    A customer expects MTS to provide a product on which he can rely and

    when he has any problem with the product, his problem is addressed

    properly on time. MTS is seeking to provide quality products and

    services to win customer reliability. As company planning to setup a

    huge customer care to solve this issue.

    2. Assurance:

    Customer expects complete assurance from the company regarding

    quality of products, effective service and grievance handling.MTS is

    assuring quality products and excellent customer care service. But still

    company has not managed to provide the desired services by customers,

    as their expectation is to get service which offers a clear but the bestservice but as per the current data costumers are not satisfied with service

    of the company.

    3. Tangibles:

    Tangibles refer to the products which have a physical appearance which

    one can touch and see. A customer rely more on tangibles i.e. products in

    hand rather than services which are intangibles. Company is providing

    mobile handsets and its high speed internet data card and showing its

    physical presence, but the physical presence is not that effective as per

    the costumers expectation.

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    4. Empathy:

    As MTS trying to be more empathetically by understanding the fact that

    consumers of today want calls at low prices and company is promising

    that they are providing their services at the best possible price. A

    customer always expects that the company should understand his

    viewpoints and needs and provide him products according to his

    needs.MTS is high on empathy because it has designed its products withkeeping customer s needs in mind.

    5. Responsiveness:

    Company promises that they are 100 % with their responsiveness by

    saying the company is offering a 24*7 services, company says they stand

    when their costumer wants them to stand for them but the reality is far

    from what company says, as their customer service base is not strong in

    India because still customers facing a bad connectivity problem and a

    bad costumer care problem.

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    SERVICE TRIANGLE OF MTS

    External marketing :

    MTS is coming up with variety of schemes to come in relation with its

    Costumers, schemes like10, 00,000 minutes free to the new subscribers.As the company s pricing strategy that to offer law tariffs to create a

    customer base because once the customer base will get crated then it will

    be easier for them to expand. Their promotional activities say Badlo life

    ka plan and use a congestion free network and this is their

    communication strategy as well.MTS has done external marketing by

    setting a promise to customers for providing quality products and

    services and is doing large scale promotions by medium of mass media

    like TV s, newspapers, hoardings etc.

    Internal marketing:

    MTS involves training its employees to meet the benchmarks of the

    customer service and is following various motivational techniques to

    motivate its employees so that they give their best and provide the

    quality service promised to its customers. Company is employing young

    and dynamic people within their organization to feed the target audience

    and to encourage the participation of their employees company is

    offering them very attractive salary packages and incentive schemes.

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    Interactive marketing:

    Interactive marketing is the moment of truth where things get clear about

    what company offers and up to what extent they deliver these services,

    with MTS they said they will deliver the best services what they serve in

    Russia and in other countries but when we spoke to some of the

    costumers of MTS they said services are good they always have the

    problem of voice breaking and call disconnection, company replies to

    this by saying they are setting up latest technology to overcome these

    issue it will take some time and problem will be rectified.

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    RECOMMENDATIONS

    MTS should do its product promotion on a very large to make

    people aware of MTS existence in Indian Telecom Market.

    Company should offer such a strong customer service that when a

    customer uses should be able realize the service is going to be the

    best, as such there is no such services being provided by the

    company.

    Company should ask for suggestion from people by various

    promotion Strategies, they can do one thing that when people call

    to costumer care they should add another feature of press this

    button to provide suggestion.

    Although company has started its operations in the various rural

    sector but not putting more emphasis to those areas ,they should do

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    more promotional strategy in those area because their tariffs are

    very low and can play a major role to win customers .

    As the product has proven a strong product in the Rajasthan region

    they should use this win and should tell the target audience about

    their customer base and customer experience.

    More live promotions like bringing its costumers into their

    promotion that will create a sense of trust amongst the users of the

    service.

    As the company has no costumer base in India but is a successful

    brand in Russia they should also bring this fact in the mind of

    people by the way promotion.

    They should also categories s their product by serving different

    scheme according to the sector, as in India children below 16 and

    people above the age of 50 don t call frequently, company can give

    them such a different product, by saying product according to the

    people .

    Company should do its promotion on a large scale to show their

    presence in the market as done by Vodafone.

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    And last but not the least company should always looking for

    something different then what is available today, as of now can doone thing that when people buy recharge coupons they can provide

    then double messages free with the talk time, lets say for example,

    if I get a coupon of 25 with talk time of 20 companies can offer

    them 40 messages free along with coupon s this is just an advice

    from our side .

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    ANNEXURES

    &

    Questionnaire

    Respected madam/sir,

    As a part of my project I would like to gather some

    information from you which will help me in an in depth study of project.

    The information provided by you will be kept confidential and will be

    used for academic purpose only. I would be obliged if you co-operate

    with me in filling the questionnaire.

    1. NAME:

    AGE:

    Below 20.

    20-30...

    30-40..

    Above 40.

    Gender:

    Male

    Female

    2.( a) Are you aware of the MTS Products?

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    Yes

    No

    b) If yes, how do you come to know about this product?

    Advertisement

    Friends

    Retail shop

    Sales executives

    Any other source (Specify)

    3. Have you used MTS Products?

    Yes

    No

    4. If you are a customer of MTS products, how long have you been

    buying it?

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    Below 6 months

    1.1 year

    1-2 year

    Above 2 year

    5. Do you think the advertisement of MTS Products has a major

    influence in your buying decision?

    Strongly agree

    Agree

    Average

    Disagree

    Strongly disagree

    6. Please rate the following factors which influence your purchase

    decision.

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    (Strongly agree-5, Agree-4, Neutral-3, Disagree-2, and Strongly Disgree-

    1)

    No Factors

    I Price of the product

    Ii Quality of the product

    Iii Availability of the product

    iv. Brand name of the company

    v. Previous Experience

    vi Advertisements

    vii Family/friends opinion

    viii Sales promotional activities

    7. Please rate your satisfactory level of MTS Products based on the

    following features. (Highly satisfied-5, Satisfied- 4, Normal-3,Poor-

    2,Very poor-

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    9. HOW satisfied are you with MTS product compared with others in

    the market?

    1. Highly satisfied ( )

    2. Satisfied ( )

    3. Neutral ( )

    4. Dissatisfied ( )

    5. Highly dissatisfied ( )

    10 Has your friend /relative opinion influenced you to buy MTS

    products

    1. Strongly agree

    2. Agree

    3. Average

    4. Disagree

    5. Strongly disagree

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    BIBLIOGRAPHY

    Websites:

    www.mtsindia.in

    www.mtsgsm.com

    http://www.sistema.com/businesses/telecom/shyam

    http://www.itvarnews.net/news/9660/MTS.html

    www.isourceupdates.com

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    http://www.mtsindia.in/http://www.mtsgsm.com/http://www.sistema.com/businesses/telecom/shyamhttp://www.itvarnews.net/news/9660/MTS.htmlhttp://www.isourceupdates.com/http://www.mtsindia.in/http://www.mtsgsm.com/http://www.sistema.com/businesses/telecom/shyamhttp://www.itvarnews.net/news/9660/MTS.htmlhttp://www.isourceupdates.com/
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    Others:

    Annual Report

    Interview of Respondents