ASSIGNMENT

OF

MARKETING MANAGEMENT

INDUSTRY SEGMENT: MOBILE OPERATORS

Submitted By

`

Amandeep Singh Gujral 401107006

Pranav Goyal 5014040

Sakshi Gaba 5014040

Gamneesh Kaur 501404040

Under the Guidance of

DR. K.S. GHUMAN

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CONTENTS

INTRODUCTION ................................................................................................................................................................................... 5

MARKET SIZE ....................................................................................................................................................................................... 5

COMPETITIVE LANDSCAPE ................................................................................................................................................................... 6

POSTER 5-P ANALYSIS ............................................................................................................................................................................ 7

MAREKTING STRATEGIES ..................................................................................................................................................................... 8

INTRODUCTION .................................................................................................................................................................................... 8

AITREL ............................................................................................................................................................................................... 8

VODAFONE ......................................................................................................................................................................................... 9

The 'Zoozoos' advertising campaign ............................................................................................................................................ 9

IDEA ................................................................................................................................................................................................ 10

MARKET SEGMENTATION .................................................................................................................................................................. 11

AIRTEL ............................................................................................................................................................................................. 11

Psychographic Segmentation: ................................................................................................................................................... 12

Behavioral segmentation: ......................................................................................................................................................... 12

VODAFONE ....................................................................................................................................................................................... 13

IDEA ................................................................................................................................................................................................ 13

PRICING STRATEGY ............................................................................................................................................................................ 14

EVOLUTION OF PRICING IN INDIAN TELECOM SECTOR ................................................................................................................................... 14

5 BASIC STRATEGIES ............................................................................................................................................................................ 15

POSITIONING ..................................................................................................................................................................................... 16

AIRTEL ............................................................................................................................................................................................ 16

VODAFONE ....................................................................................................................................................................................... 16

IDEA ................................................................................................................................................................................................ 16

CONSUMER BEHAVIOR ...................................................................................................................................................................... 16

CULTURE & SUB CULTURE INFLUENCES .................................................................................................................................................... 16

Parental Control ........................................................................................................................................................................ 16

Individualism vs. Collectivism .................................................................................................................................................... 17

Masculinity Vs Feminity ............................................................................................................................................................. 17

Religion ..................................................................................................................................................................................... 17

SOCIAL INFLUENCES ............................................................................................................................................................................ 18

Group opinion ........................................................................................................................................................................... 18

Prestige ..................................................................................................................................................................................... 18

Social Class ................................................................................................................................................................................ 18

MARKETING INFLUENCES ...................................................................................................................................................................... 18

Brand Image ............................................................................................................................................................................. 19

Word of Mouth ......................................................................................................................................................................... 19

Sales Promotion Offers .............................................................................................................................................................. 19

Advertising Campaign ............................................................................................................................................................... 19

Innovation in Services ................................................................................................................................................................ 19

Segment Quota ......................................................................................................................................................................... 20

PRODUCT ........................................................................................................................................................................................... 20

AIRTEL ............................................................................................................................................................................................. 20

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VODAFONE ....................................................................................................................................................................................... 21

Various plans (Prepaid) offered are: .......................................................................................................................................... 21

Postpaid services are: ................................................................................................................................................................ 22

Vodafone Business Solutions ..................................................................................................................................................... 22

IDEA ................................................................................................................................................................................................ 22

PLACE ................................................................................................................................................................................................. 23

AIRTEL ............................................................................................................................................................................................. 23

TERITOTY MANAGER: ................................................................................................................................................................ 23

Channel management in Airtel: ................................................................................................................................................. 24

Second Degree distribution network: ......................................................................................................................................... 24

Third degree distribution network: ............................................................................................................................................ 24

VODAFONE ....................................................................................................................................................................................... 25

Indirect channel (Tier 1) urban .................................................................................................................................................. 25

Indirect channel (Tier 2) rural .................................................................................................................................................... 26

Exclusive retail .......................................................................................................................................................................... 26

REFRENCES......................................................................................................................................................................................... 27

4

LIST OF TABLES

Table 1 Poster analysis of Indian telecom sector .................................................................................................... 7

Table 2 Services provided by IDEA is shown under: ........................................................................................... 14

Table 3 Five basic pricing strategies used in Indian telecom sector ..................................................................... 15

Table 4 Vodafone distribution channel description .............................................................................................. 25

LIST OF FIGURES

Figure 1 Wireless market share in terms of total subscribers in India .................................................................... 5

Figure 2 Illustration showing top players of the industry ....................................................................................... 6

Figure 3 Poster analysis diagram ............................................................................................................................ 7

Figure 4 zoozoos campaign graphic-1 .................................................................................................................... 9

Figure 5 zoozoos campaign graphic-2 .................................................................................................................... 9

Figure 6 Idea’s marketing campaign graphic-1 .................................................................................................... 10

Figure 7 Price Illustration ..................................................................................................................................... 15

Figure 8 Airtel your plan advertisement ............................................................................................................... 21

Figure 9 Vodafone Service ad-1 ........................................................................................................................... 21

Figure 10 Vodafone service ad-2 .......................................................................................................................... 22

Figure 11 Idea 3G ad............................................................................................................................................. 22

Figure 12 Airtel Distribution Channel .................................................................................................................. 23

Figure 13 Work of territory manager .................................................................................................................... 24

Figure 14 Vodafone’s distribution channel-Urban ............................................................................................... 25

Figure 15 Vodafone’s distribution channel-Rural ................................................................................................ 26

Figure 16 Vodafone’s exclusive retail layout ....................................................................................................... 26

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INTRODUCTION

Telecom services have been acknowledged globally as an essential tool for the socio-economic

development of a nation. India is currently the world’s second-largest telecommunications market and has

registered exceptional growth in the past few years.

Telecommunications is one of the prime support services needed for rapid growth and modernization of

various sectors of the economy. Driven by strong adoption of data consumption on handheld devices, the total

mobile services market revenue in India will reach US$29.8 billion in2014 and is expected to touch US$37

billion in 2017, registering a compound annual growth rate (CAGR) of 5.2 per cent, according to research firm

IDC.

The rapid strides in the telecom sector have been facilitated by liberal policies of the Government of

India that provides easy market access for telecom equipment and a fair regulatory framework for offering

telecom services at affordable prices. The deregulation of foreign direct investment (FDI) norms have made the

sector one of the fastest growing and a top five employment opportunity generator in the country.

MARKET SIZE

The number of telephone subscribers in India increased from 933 million in March 2014 to 935.81

million (Wireless- 907.44 million, Wireline- 28.36 million) in April 2014, as per data released by the Telecom

Regulatory Authority of India (TRAI).

The country’s GSM operators added 2.10 million rural users in June 2014 taking their total to 302.73

million, according to data released by Cellular Operators' Association of India (COAI).

Bharti Airtel has the maximum rural users at 96.63 million as of June 2014, whereas Vodafone added

the maximum during the month of June to take its rural user base to 90.91 million. Idea Cellar’s rural subscriber

base stood at 76.85 million at the end of the month, whereas that of Aircel and Uninor stood at 25.96 million

and 12.38 million, respectively.

As of May 2014, the top three telcos - Bharti Airtel, Vodafone and Idea Cellular - have garnered market

shares of 28.41 per cent, 22.95 per cent and 18.79 per cent, taking their subscribers to over 208 million, 168

million and 137 million, respectively.

Figure 1 Wireless market share in terms of total subscribers in India

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COMPETITIVE LANDSCAPE

Demand is driven by technological innovation and by growth in business activity. The profitability of

individual companies depends on efficient operations and good marketing.

Large companies have big economies of scale in providing a highly automated service to large numbers

of customers, and have the financial resources required building and maintaining a large network.

Smaller companies can compete effectively only in small markets or by providing specialty services

Figure 2 Illustration showing top players of the industry

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POSTER 5-P ANALYSIS

Figure 3 Poster analysis diagram

Table 1 Poster analysis of Indian telecom sector

Threat from new entrants:

Strict government regulations

Extremely high infrastructure setup cost

Difficulty in achieving economies of scale

Bargaining Power of Buyers:

Low switching cost

Cut throat competition

Customer is price sensitive

Number portability scheme

Lack of differentiation among service

providers

Supplier Bargaining Power:

Limited no of suppliers

High switching cost

Heavy regulations on bandwidth purchase

Lack of control on price, quality, etc. due to

outsourcing.

Threat of Substitutes:

Emerging instant messenger services

Satellite phones

E-Mails

Video Conferencing like skype, hangout, etc.

Industry Rivalry:

Customers’ low switching cost and price sensitivity are increasing competition among players

High exit barriers are also intensifying competition

There are around 6 to 7 players in each region, leading to intense competition

Less time to gain advantage through innovation

Industry riavlary

Barganing power of supplier

Threat of substitutes

Barganing power of

buyer

Threat of new

entrants

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MAREKTING STRATEGIES

INTRODUCTION

In Indian telecom sector there are many mobile operators each with its own USP. To understand the

marketing strategies adopted by mobile operator we will focus on the marketing strategies of top three player

and see why they have more market share than their competitors.

AITREL

The advertising strategy used by Airtel is very

different from that of other players. Airtel focuses on

the very basic use of the mobile that is for

communication. Through its advertisements, Airtel

emphasizes on the importance of communication and

expressing feelings and emotions. This is reinforced by

its tagline which is ’Express Yourself’. Another

element clearly visible in the Airtel ads is the human

element. Airtel focuses on human relationships. Be it

that of a grandson and a grandfather or between a

husband and his wife. Airtel has thus used the basic

emotions of communication and expression as a

differentiator to connect deeper with the audience.

The message that comes across through Airtel

ads is that there is always a need to communicate with

your loved ones, need to be heard or make your point

and Airtel helps you do that in the most expressive

way, anywhere, anytime.

In the Initial stage Airtel’s positioning was

extremely innovative it created a unique music tune for

its brand by AR.Rahman which became the identity for

the brand, the music became the master piece for the

brand, the tune create a great impact around the

country. Impact for the tune is very huge

that anyone can tell that its Airtel tune, the TV

advertisement for the music tune also projected the

positioning of the brand “feel proud about the nation

Rural Market

Bharti Airtel has adopted the strategy of direct

communications to market its value proposition to

rural customers. To make its services accessible, the

company provides all of its marketing content in

local languages. Vans are used to cover rural areas

with staff who educate locals about mobile services

and usage.

The company has developed a shared phone

service called Public Call Offices (PCOs) in rural

regions to increase awareness about its brand and

services.

Bharti Airtel Service Centers have been set up

in villages to address customer queries and

complaints as well as act as sales and distribution

points. These centers employ local people and offer

sales and customer services using local dialects.

Bharti Airtel has already established over

18,000 service centers in rural India, covering over

400 languages and local dialects. The company plans

to expand this network.

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VODAFONE

The 'Zoozoos' advertising campaign

The campaign introduced new characters called

Zoozoos. To convey a specific value added services

VAS offered by the company, each ad used a story

which was enacted by the Zoozoos. The campaign

created the buzz both in the traditional media as well as

in social networking sites like Facebook and Twitter

and video sharing website, YouTube. While advertising

experts appreciated the creativity of the ad campaign,

they were apprehensive whether the popularity of the

campaign would actually help the company increase its

revenues.

Vodafone frequently uses local name

recognitions to reach and maintain trusts of its local

customers. Mary Kom, the famous boxer and

Olympian is its global brand ambassador. In addition,

in order to help promote its global appeal and to

communicate its brand value, the telecommunication

giant often uses famed sports stars like David

Beckham, Michael Schumacher and others.

It also advertises its brand value and offers

through billboards, TV commercials and other social

media outlets in order to reach a large number of

people. The most famous move by Vodafone

worldwide was the use of Vodafone zoo zoos in India

during the Indian premier league.

Vodafone has introduced various new beneficial

schemes/offers to attract the customers like various talk

time offers, validity offers, Bonus Cards, Tariff offers,

low cost handsets etc for the prepaid users and ISD,

STD, SMS, MMS offers, iPhones and Blackberry

handsets to the post-paid users (Vodafone, 2010). In

addition, the company.

Figure 5 zoozoos campaign graphic-2

Figure 4 zoozoos campaign graphic-1

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IDEA

Idea Cellar’s campaigns, based on social issues that

could be solved using mobile telephony, were

acclaimed for their creativity. The company used its

brand name 'Idea' in creative and meaningful ad

slogans like 'An Idea can change your life,' 'A good

Idea,' and 'What an Idea!' and concluded in its ads

making perfect sense. The ad campaigns like the

‘What an idea sirji’ campaign with Abhishek

Bachchan, its brand ambassador playing Sirji, tries to

bring to fore innovative ways to use the cellular

technology for the societal, environmental and human

good.

‘A Good Idea’ Campaign- Idea's promotions in 2006

were based on its tariffs, service quality, and network

coverage. For instance, Idea started promoting its

Rs.0.5 per local call per minute service aggressively.

One of its TVCs featured a bowler and an umpire in a

game of cricket.

The online initiatives- Idea took its 'What an !dea'

campaign further - from TV, print, and radio to the

Internet. It launched several websites that

complemented its campaigns that championed social

causes. In December 2008, Idea launched a website

called http://bythepeople.in to take forward its TVCs

based on democracy.

The ‘Out-Of-Home’ Campaigns- Idea had been using

OOH media like hoardings, public transport systems,

and bus shelters since the early 2000s. The company

used OOH media innovatively to reflect the message

of the ad. One of the most noticed campaigns of Idea's

OOH was the one used in the city of Surat in the state

of Gujarat.

Figure 6 Idea’s marketing campaign graphic-1

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MARKET SEGMENTATION

Segmentation can be defined as the process of dividing the market into customers with similar interests

into one segment.

AIRTEL

Due to diminishing marginal returns on its voice revenues, Airtel was forced to abandon its one size fits

all demographic segmentation. It came up with a strategy where it classified users into different segments.

Airtel segmented its customer market on following basis

Geographical Segmentation:

The market is divided into groups based on demographic attributes such as

localities, regions, cities, density etc. Airtel segments the market on the basis of

states, as they have different plans for different states. The different geographic

regions are handled independently and different campaigns are run according to the

tastes and preferences of people in each region.

Demographic Segmentation:

The market is divided into groups based on demographic attributes such as

localities, regions, cities, density etc. Airtel segments the market on the basis of

states, as they have different plans for different states. The different geographic

regions are handled independently and different campaigns are run according to the

tastes and preferences of people in each region.

Age and lifecycle: Recognizing that senior citizens have the need to keep in touch with their children and

relatives who may be located far away, Airtel came up with a senior plan which offered a discount on

one STD number and one local number. Besides, subscribers of this plan would get special discounts for

health check-ups and would have facility to club bills with that of their children.

Gender: The Company has also launched special packages to target the women. Airtel had started the

Ladies Special plan targeted at women and allowed subscriber to receive special beauty and lifestyle

tips, apart from subscriptions to cosmopolitan and housekeeping magazines. The plan also offers women

the option to club the monthly bills with that of their spouses.

Income: Airtel also segmented the market on the basis of income through their corporate plans. They had

started the corporate scheme on the basis of the higher usage rate and higher income persons.

Generation: Airtel had started ‘Friends’ pre-paid connection, SMS plans and VAS like hello tunes,

which was targeted towards the 15-25 year age. This includes phone-to phone (P2P) recharge facility,

enabling the consumer to transfer talk time and validity to any Airtel prepaid subscriber. In addition

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comes the introduction of ‘Hot Spot’ tariffs where Airtel Friends customers can enjoy tariff discounts at

pre-designated places within the city.

Psychographic Segmentation:

In this segmentation, marketers segment the market on the basis of motivation,

values, belief, lifestyle, personality etc.

Lifestyle: Airtel focused its attention on two groups in particular.

o The first group was known as "funsters" -- consumers aged between 18-35 years old, who share a

common trait -- a high adoption of VAS. Airtel believes that with some targeted marketing,

spending from this group can increase quite significantly. The Telco has exclusive tie-ups with

application providers like Google and has identified music-on-demand as a key value

proposition.

o The other segment of focus is the "achievers", who are the top five percent of mobile users.

While this segment isn't a high adopter of VAS, it contributes to revenues nearly 10 times that of

Airtel's ARPU.

o To enhance customer experience for this segment, Airtel has separate priority relationship

managers. It also partnered with HTC and Blackberry to offer high end handsets catering

specifically for those customers who want to be in touch with their peers or their subordinates,

colleagues etc.

Personality: Airtel last year had also started life Time Validity scheme for the persons who are not

financially strong and can’t afford the normal schemes.

Behavioral segmentation:

Organizations also divide the market on the basis of behavior that the customer shows towards the usage

of products. Various variables for segmenting market on the basis of purchase behavior of customers are

occasions, benefits, user status, user rate, loyalty etc.

Occasions: Airtel on the occasion of Independence Day introduced a recharge coupon of Rs.1947 with

two years validity for its Delhi and NCR prepaid customers.

Benefits: Airtel also provides various tangible and intangible benefits for its customers. Like Airtel

launched various tangible benefits like validity schemes for its customers and intangible benefits like

roaming, voice mail, fax mail, close user group etc.

Usage rate: Airtel very often comes up with schemes like Get the talk time of 1111 on the recharge on

1000 i.e. getting more talk time value for which customers are paying.

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VODAFONE

Vodafone is seen as much focused in segmentation in India. Vodafone as segmented Indian Market as

geographical segment where rural part of India is at much attention because of the huge potential market for

telecom.

Secondly, it has focused on the demographical segment where the middle and low income group falls.

Both the segment comprises the major population of the country.

Vodafone has also segmented the customer in terms of psychographic (students, professionals etc.) and

behavioral aspects (high users and low users) and have provided the services as per the needs of the market and

customers.

IDEA

Idea Cellular currently segments its customer profile into 2 basic groups:

Prepaid Customers and

Postpaid Customer

Prepaid Customers are generally the personal use customer group i.e. non institutional. This segment

accounted for around 80% of the customer base (2008 figures) and the remaining 20% was accounted for by the

postpaid customer base.

The customer base is also segmented into groups according to the monthly revenue generated:

1) VIP customers: These are the customers who form the VIP group as the name suggests and comprises of

MPs, MLAs, industrialists and other high profile customers. These are given high attention in services as they

are key to implementation of services across their regions.

2) Corporate Customers: These are the customers having more than five connections to their name and generate

revenues in excess of Rs. 10000 a month. These are usually institutionally driven connections and are post-paid

customers. Service quality in terms of Value Added Services provided including preferential customer service

treatment is provided to retain these high value accounts

3) Platinum Customers: These are the customers whose current monthly expenditure on Idea Cellular Services

is in excess of Rs.1500 per month. The revenue generated from these accounts includes Voice, Data and VAS

services. Around 60% of these are from the post-paid group while the remaining 40% are from the pre-paid

group. Institutional Customers account for around 70% of the post-paid base while the remaining are the

personal usage customers.

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4) Gold Customers: These are the customers providing revenues to the company betweenRs.1000 and Rs.1400

a month. The pre-paid base is again smaller in this segment accounting for nearly 35% of the customers. A

healthy split is found between personal and institutional usage customers.

5) Silver Customers: This customer group provides revenues in the range of Rs.750 toRs.999 to Idea Cellular

each month. Pre-paid user group is in the range of around 55% while institutional sales account for around 80%

of the post-paid group.

6) Medium Volume users: These are the customers generating between Rs.220 to Rs.750each month. Prepaid

customers form around 65% of the group while this group accounts for approximately 30% of the whole

customer base of Idea Cellular

7) Low Volume customers are the customers generating revenues less than Rs.250 per month

Table 2 Services provided by IDEA is shown under:

Customer segmentation DESCRIPTION:

METROPOLITIAN

AREA

DESCRIPTION:

URBAN AREA

DESCRIPTION:

RURAL AREA

PRODUCTS Pre-paid , postpaid

mobile services

Pre-paid , postpaid

mobile services

Pre-paid , postpaid

mobile services

SERVICES GPRS, voice and SMS

based services, call

forwarding, call

conferencing, national &

international roaming,

vehicle tracking,

automatic meter reading

GPRS enabled

information services

like internet browsing,

data cards and mobile

e mail, ring back

tones, horoscopes,

expert advise

Krishi voucher, health

care services.

CHANNELS Direct outlets Both direct and

indirect

Indirect

UNIQUE

COMPETENCIES

6 sigma, net setter data

cards, blackberry

solutions, largest

customer base, strong

distribution channels

6Sigma, high quality

network structure,

centralization of

several applications.

Usage of solar power

BTS, Frequency

optimization technique.

PRICING STRATEGY

EVOLUTION OF PRICING IN INDIAN TELECOM SECTOR

Indian service providers’ pricing evolved over three phases. The first phase was an introduction phase, from

1995 to 2000. The incoming and outgoing calls were priced around Rs 14/minute, which made the service a

luxury, attracting significant snob appeal. Eventually the outgoing call prices dropped to Rs 9/ minute and

incoming to Re 1/minute (towards the end of this phase), attracting a greater segment of the population.

15

Thereafter, in the Growth phase which lasted from 2000-2005, the outgoing call rates dropped to Rs 2/minute

while the incoming calls became free of charge. Many new players entered the market during this period, such

as Reliance, which set new benchmarks for pricing. Following an aggressive strategy to attract a huge customer

base, Reliance forced other operators to change their plans according to its offerings.

Interestingly, what followed is the maturity phase where Tata Docomo used the 1p/second billing to gain entry

into the crowded market. Tata Docomo’s strategy is reminiscent of Reliance’s pricing strategy from the growth

phase. The other operators reluctantly followed suit and added per-second billing plans to their existing product

portfolio. This is one of the reasons for the crowding seen in Airtel’s postpaid plans, among others, as it

continues to offer per-minute billing options also.

5 BASIC STRATEGIES

Table 3 Five basic pricing strategies used in Indian telecom sector

STRATEGIES Representative practices

BUNDLING Bundling of voice, SMS and data

PERFORMANCE PREMIUM Differentiating different maximum speed

Differentiating network used(LTE)

Differentiating QoS

TRAFFIC DIFFERENTIATION Bundling with content

Packages for access to specific apps

Premium for access to VoIP services

USAGE PATTREN CUSTOMISATION Volume discount

Time based charging

ACCESS PLATFORM PRICING Pricing by device type

Multi-SIM pricing

Mobile Operators are still experimenting on how best to

build value propositions around data. Various survey has

revealed great variations in the way mobile operators sell,

bundle, measure and charge mobile data. Yet at least five

broad mechanisms for price differentiation can be identified

in the mobile data pricing strategies of most surveyed

operators. The table below summarizes these five

‘strategies’ with some representative pricing practices for

each of them.

Figure 7 Price Illustration

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POSITIONING

CONSUMER BEHAVIOR

There are different factors that can affect the purchasing decisions of the telecom users in rural, semi

urban and urban areas that includes their demographic factors, their psychological, social and cultural and

marketing factors

CULTURE & SUB CULTURE INFLUENCES

Parental Control

The Respondents of rural, semi urban and urban areas are asked if they have chosen their service

provider as per their wish or under parents influence, then more than 80% of the respondents chose their service

provider as per their wish which shows very less parental control in all areas.

AIRTEL

The product is supposed to be a

business efficiency tool. A lifestyle

revolution and a status symbol. It’s a

day to day use commodity and is no more

a symbol of status.

Leading telecom operator Bharti

Airtel is adopting a new positioning

in its advertising and brand

communications. For years, its ad

campaigns have been focused

around Airtel being the network

that connects people. With the

market evolving from voice-driven

offerings to data-led services, brand

Airtel is extending its positioning

to become the “most preferred”

network for smart phone users.

Airtel adopts smart positioning

with new campaign, cleaner brand

look.

VODAFONE

Vodafone is one of the biggest

names in wireless technology, and

is continuing to grow a solid, loyal

customer base because the

company offers excellent product

along with excellent customer

service.

The company continues to offer a

variety of services, including data,

messaging, voice and broadband.

It's continuous advancement in the

data services, they offer by

developing its 3G networks and the

capabilities of various handsets. It's

a mobile service that’s easy to use,

with low-cost telephone line and

even DSL broadband connection. It

also provides you monthly billing

cycle, pre-paid agreement or even a

contract. And is known for its best

customer services.

IDEA

Idea’s strategy has been to build on

its strong brand equity and

significant presence in rural and

semi-urban areas. Today, it is the

third largest GSM mobile operator

in the country with 92 million

users. It follows Bharti airtel (164

million) and Vodafone Essar (137

million) and is followed by Bharat

Sanchar Nigam Limited (92

million, including wireline) and

Aircel (56 million). In April 2011,

Idea had the highest net mobile

user addition at 2.45 million. The

company’s performance so far has

been commendable. In terms of

revenue market share, it is ranked

first in four circles and second in

three of the country’s 22 telecom

circles.

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Individualism vs. Collectivism

In Urban area, 57% of the respondents agree where as 49% strongly agree that they need the service

provider that leads to maximum interaction, in Semi urban areas, 74% of the respondents strongly agree that

they need maximum interaction where as in rural areas, 100% of the respondents strongly agree that they will

choose the service provider which leads them for maximum interaction with their near ones. This shows that the

level of collectivism is very high in the rural areas than in urban and semi urban areas.

Masculinity Vs Feminity

Sex as a cultural factor effects the purchasing behavior of the customers. In Comparison to rural, semi

urban and urban area, the females of rural are more dependent on their family/spouse. The females above the

age of 42 are also influenced by their children. They are not so educated but still they are aware about the

services the providers are offering. The reason behind that is the media that has reached in every lane and home

of the rural area too. They are more budget conscious and so they use prepaid services. The females in rural

areas are also involved in self-employment. The services often used by them are local and STD calling where as

in urban areas female respondents also use internet and SMS services. The female respondents in the Semi

urban and urban area are maximum working and so are less dependent on their family. They are educated

enough to take their own decisions. They are aware about the competition among the service providers and so

consider different factors while choosing their service provider. They highly believe in collectivism and try to

increase their interaction. 100% of female respondents are using internet services apart from calling and SMS

Services where as in rural areas 94% of the respondents are using internet services.

As compared to female respondents the male respondents are less dependent but they consider their

family and friend’s opinion, interaction level, group opinion while choosing the service provider. The male

respondents of urban areas are well qualified or are studying as compared to the respondents of rural areas.

They are using mobiles not only for calling or for their business or professional reasons but also for fun sake.

There are hardly any differences between the rural, semi urban and urban users in case of male respondents

except that the rural users are more budget conscious than urban and semi urban users. They consider call tariff

as the most important factor while choosing a service provider and they are more prone to change their provider

in case of better services offered by other providers. This makes the competition very tough in the market.

Religion

Religion as a sub cultural factor does not affect the purchasing behavior of the customers in rural, semi

urban and urban areas. More than 95% of the respondents disagree to consider religion as a factor while

choosing their service providers.

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SOCIAL INFLUENCES

There are many social factors that influence the purchasing behavior of the consumers that includes their

Family, reference group and Social Class.

Family and Friends

54% of the urban respondents agree where as 46% of the respondents strongly agree that they consider

family and friends as an important factor while choosing their service provider. They consider the provider that

provide them with best family plan or add on options to have economical contact between the families. In case

of semi urban users 51% agree and 49% strongly agree where as in case of rural areas 77% strongly agree for

considering Family as an important factor. This social factor leads to maximum social interaction between the

individuals.

Group opinion

As group opinion is concerned 63% of the urban respondents agree and 37% strongly agree, in case of

Semi Urban 69% of the respondents strongly agree and in case of rural users 60% strongly agree. The semi

urban and rural users prefer to walk in group than individual. For them group opinion is the best method to

choose the service provider.

Prestige

Talking about the Prestige factor, 71% of the urban users strongly agree that they consider having a

mobile with the services of reputed service provider is prestigious and they want to keep that. In case of semi

urban and rural area this percentage is less with 60% and 54% respectively. In case of rural area, 6% disagree

and 6% are neutral while considering prestige as a factor. So the urban respondents are more influenced by the

prestige factor than in case of rural and semi urban area.

Social Class

Social Class as a social factor effects the purchasing behavior of the consumers, their colleagues and

their seniors, their role in the society, status all affect the purchasing behavior of the consumers. When asked

about the respondents of urban, semi urban and rural areas, 57% of the respondents of the urban respondents

agree while 43% strongly agree that they consider social class as an important factor. In regard to Semi Urban

and rural users, 69% of the semi urban users strongly agree 60% of the rural users strongly agree that they

consider social class as an important factor. They consider their status, their role in the society, their social

circle as an important factor.

MARKETING INFLUENCES

There are many marketing factors that affect the purchasing behavior and decisions of a consumer:

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Brand Image

54% of the urban respondents agree where as 46% strongly agree that they consider brand image as an

important factor while choosing their service provider. But in the case of semi urban area 40% agree, 54%

strongly agree and 6% disagree for considering brand image as an important factor. In case of rural area, 66%

strongly agree, 31% agree where as 3% disagree while considering brand image as an important factor.

Word of Mouth

Word of mouth is an important media for publicity. We are very much influenced from the place we live

in, where we work, our role and status in the society and so the persons we live with also effects our decision.

Their views and opinions are generally considered for the buying process. 42% of urban respondents agree,

46% strongly agree, 6% disagree and 6% are neutral whose decisions are effected by the word of mouth

medium. In case of Semi urban and rural consumers, 77% of the semi urban users strongly agree and 66% of the

rural users strongly agree while considering word of mouth as an important factor to consider.

Sales Promotion Offers

Sales promotion offers is also an important marketing tool used by the service providers to compete in

the market. 77% of the urban users agree, 86% of the Semi urban users strongly agree where as 100% of the

rural consumers strongly agree that they consider sales promotion offers while choosing their service providers.

These sales promotion offers can be in the form of discounted calls, extra services provided by the Service

providers that effect the buying decision of the consumers. Apart from sales promotion offers, the consumers

are also interested in the different applications and services offered by the providers.

Advertising Campaign

Advertising works as an influential factor for most of the respondents in different areas. In urban, semi

urban and rural areas 69%, 57% and 74% agree that advertising effects their buying behavior. As the users of

different areas are maximum awared through the advertising medium that includes newspaper, TV, radio,

hoardings, insertions etc. the consumers get knowledge of all the providers through these medium and can

compare before choosing their provider. So advertising is an important marketing tool that effects the

consumer’s behavior.

Innovation in Services

51% of the respondents of urban area, 60% of the semi urban users and 66% of the rural users strongly

agree that the innovation in services effect their decisions. While the users of the rural area are not so much

educated but they are aware about the technology the providers are providing and so they want to get the best

and updated technology and services. The users use the mobiles not only for calling purpose and they don’t treat

this only as communication medium but entertainment medium also. So they always look for new and latest

services.

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Segment Quota

Specials tariffs and plans for different groups are also an important marketing tool that the users

consider. 51% of the urban users, 77% of the semi urban users and 71% of the rural users strongly agree that

they consider this if any provider is offering them special services under segment quota.

CONCLUSION

From the study it can be concluded that the Social, Cultural and Marketing factors have a great influence

on the buying behavior of the users of rural, semi urban and urban area. The advancement in technology has

narrowed the difference between the awareness and usage of mobile services in different areas. Rural, Semi

Urban and urban area has become the same market. The entry of the service providers has made the competition

tough in the market and so the marketers must be aware of the factors that affect the buying behavior of the

consumers. We live in Society and so the social factors affect our decisions that include Family, friends,

Relatives, seniors, Colleagues, role and status in the society. Cultural factors and marketing factors are also

considered while choosing the services of a service provider.

PRODUCT

AIRTEL

Bharti Airtel Limited (Bharti Airtel) is one of India’s most popular providers of integrated

telecommunication services and is based in India and headquartered in New Delhi. The mobile services

comprise of fixed wireless services and mobile services which use GSM network technology across major

telecommunication circles in the country.

Products in the marketing mix of Airtel

The company provides a wide array of products and services. In order to retain the maximum number of

customers, Airtel has tried to provide as many products and services as possible in order to keep the customers.

The following is a list of its products:

Airtel Pre-paid services

Blackberry Wireless Handheld

Airtel Post-paid services

Value added services like instant balance inquiry, caller line identification, 24 hour recharge facility,

multimedia messaging service, call wait & call Hold, Caller divert, Airtel Live portal

SMS based information services

Voice mail services

Hello tunes, Ring tones,

Ringtones and hello tunes offers

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Easy post-pay bill payment solutions

Enterprise Solutions

Figure 8 Airtel your plan advertisement

VODAFONE

To cope up with the challenges of Indian market and targeting the number one spot in the industry

Vodafone has been catering to the needs of every section of the country. This can be understood through the

different tariffs, Value added services and talk plans offered to different customers.

Various plans (Prepaid) offered are:

1. Talk time offers

Full Talk time Recharge(For those who look for value for money)

Bonus Cards with talk time benefits(for those who change the talk plans frequently)

Chhota recharge(For low end user, mainly rural)

2. Validity Offers

Lifelong prepaid

3. Bonus Cards

SMS pack(For those who love texting)

Mobile internet pack(Connect to internet anywhere)

Conversations @ 1p/second (For small talks)

Call anyone anywhere @ 50p/minute(For people who call a

lot to other circles)

Figure 9 Vodafone Service ad-1

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Talk all night @ 10p/minute to Vodafone(For lovers)

SMS @ 10p(For those who text often)

Night Minutes(For those who talk freely at night)

4. Tariff offers

Vodafone Campus pack(For Students)

Vodafone Gappagoshti(For elder people who like to chat)

Vodafone friends circle(For young people who love to be in touch with friends)

Postpaid services are:

1. Talk plans for everyone

2. Bill in your Inbox

3. My Vodafone

Vodafone Business Solutions

Some services are specially designed for high end business

customers who help them keep track of their businesses in a much

better and easier way. Some Business Services are:

1. Vodafone Mail(For businessmen who travel a lot)

2. Vodafone Mobile Connect 3G(Anytime Easy high-speed

internet connectivity)

3. Essential Downloads(Basic Application Software for utilizing

all the services)

Apart from these specific prepaid, postpaid and business services,

there are various other Value Added Services like Vodafone Live,

Caller Tune, Ring tone download, Wallpaper download, Cricket and

Business updates etc. All these services cater to different segments of

the market. The services are being updated and the talk plans are

revised from time to time to cater to the needs of different segments and

avoid churn.

IDEA

Idea Cellular is an Aditya Birla Group Company, India's first

Figure 10 Vodafone service ad-2

Figure 11 Idea 3G ad

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truly multinational corporation. It offers a range of high-speed mobile broadband devices including Android

based 3G smartphones, dongles etc. Idea’s wide portfolio of 3G smartphones offer, the latest is 3G applications

and high-end data services such as Idea TV, games, social networking etc. at affordable prices.

Idea is a pan-India integrated GSM operator offering 2G and 3G services, Idea’s robust pan-India

coverage is built on a network of over 100,000 2G and 3G cell sites, spread across over 55,000 towns in India.

PLACE

AIRTEL

Airtel have wide and effectively spread structure all over the world. The channel structure is simple and

effective. Complications are kept out in order to make over all process very effective and efficient.

Figure 12 Airtel Distribution Channel

TERITOTY MANAGER:

The distributors include one who handles

1.) Provisioning

2.) Documents

3.) Operations back up

4.) Field sales executive

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Figure 13 Work of territory manager

Channel management in Airtel:

Since Airtel has an intensive distribution network, proper channel management becomes an

indispensable part of system. One of the major issues encountered in the channel management is channel

conflict. Channel conflict is behavior by a channel member that is an opposition to its channel counterparts. It is

opponent centered and direct, in which the goal or object sought is controlled by the counterpart.

Channel conflicts, that mainly result from competing goals of the channel members, different perceptions

of reality, clashes over domains i.e intra ans multi-channel competition, roles unclearity, expectations

divergence, relationship disharmony etc. to avoid conflicts, Airtel has adopted a second and Third degree

Distribution network.

Second Degree distribution network:

Company makes invoice of SIMs, PEFS GSM Pay Phones, RCVs of various denominations chiefly

Rs.10, Rs.30 and Rs.60 to only Urban Distributers and Rural Super Distributers. Easy balance is also transferred

to only Urban Distributers and Rural Distributors (RS). Urban distributors distribute the above items to retailers

according to the demand and transfer easy balance to retailer through FOS (Field Sales Officer) SIM. This is

more suitable for the urban market where demand is obscurely driven.

Third degree distribution network:

RS distributes the above items to rural distributors commonly known as RDs and transfers easy balance

into Rural Distributor then distribute the above items among the retailer according to the demand of it and

transfer easy balance to retailer through FOS SIM from easy balance of Distributor SIM. This three level

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distribution is used to reach to sub urban and rural areas since there is lesser popular density and large

geographical spread that has to be catered to.

VODAFONE Table 4 Vodafone distribution channel description

Indirect

Channel

Exclusive

Retail

Direct

Channels

Modern

Trade

B2B

Business • 2 tiered

distribution

model

• For mass

market

reach

• Focused on

prepaid

Exclusive

• Sales and

service

• Primary focus

on

postpaid,

terminals and

data.

Selling directly to

end customer

• Focused on

postpaid

Large format

outlets

/ chain stores

• Future growth

driver

for Data & 3G

• Enterprise

• Includes fixed

line and data.

Indirect channel (Tier 1) urban

Figure 14 Vodafone’s distribution channel-Urban

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Indirect channel (Tier 2) rural

Figure 15 Vodafone’s distribution channel-Rural The 2-Tiered distribution sales and service model focuses to increase presence and

relevance

• Associate distributors appointed to cater to rural population, responsible for 4 to 7 cell-sites in

designated area

• Associate distributor also responsible for providing services

Exclusive retail

Figure 16 Vodafone’s exclusive retail layout

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REFRENCES

Vodafone.com

Airtel.com

Idea.com

Influence of Cultural, Social and Marketing Factors on the Buying Behavior of Telecom Users: A

Comparative Study of Rural, Semi-Urban and Urban Areas in and Around ChandigarhJournal of

Marketing Management, March 2014

Ibef.org-telecommunication reports

Slideshare.com