Pre Launch Research and Launch of Uninor in Pune Using Brand Co-Creation and Post Launch Survey
Pre Launch Research and Launch of Uninor in Pune Using Brand Co-Creation and Post Launch Survey
Pre Launch Research and Launch of Uninor in Pune Using Brand Co-Creation and Post Launch Survey
A Study Project
Submitted to University of Pune in partial fulfillment of the
requirements for the
Award of Master’s Degree Course in Business Administration
2009 – 2010
Talents and capabilities are of course necessary but opportunities and good guidance are two
very important things without which no person can climb those infant ladders towards
progress. I am really thankful to UNINOR Telecom, Pune for giving me the permission to carry
out the summer internship in their esteemed organization. I want to express my deep sense of
gratitude to the management and staff of UNINOR Telecom, for the support, co-operation
and briefings, they provided during the internship to make it a success.
I would also like to thank “Sinhgad Institue of Business Administration and Computer
Application” for giving me the opportunity to undergo summer internship at UNINOR .
I deem it a proud privilege to extend my greatest sense of gratitude to my guide Mr. Ketan
Shetty for the keen interest, inspiring guidance, continuous encouragement, valuable suggestions
and constructive criticism throughout the pursuance of this report. I specially extend my heartfelt
thanks to my Faculty guide Prof Atul Pise for helping me at every step, and guiding me in every
way possible. I am especially thankful to my mentors and my guide for their expert guidance and
cooperation during this internship. Without their help, it would have been very difficult for me to
HARIL JOSHI
MBA-MARKETING
SINHGAD INSTITIUE OF BUSINESS ADMINISTRATION AND
COMPUTER APPLICATION
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EXECUTIVE SUMMARY
The development of the telecom sector has experienced a major process of transformation in
terms of its growth, technological content, and market structure in the last decade through policy
reforms introduced by the Government. The impetus of these changes is expected to continue,
The study aims to analysis that with the increase in competition in telecom services, higher levels
of consumer satisfaction with affordable prices and improved quality of services achieving or
not. Wireless telephony and the Internet are expected to be the preferred means of
technology progresses.
The study also shows the supportive policy framework needs to be in place during this period of
rapid growth and transformation. The Government has undertaken the implementation telecom
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policy with utmost earnestness, in letter and spirit to usher in competition in almost all the
service sectors. The migration package to revenue sharing in place of a fixed license fee, has led
IX to a virtual ‘take off” in growth of the cellular and basic service sectors. National and
International data connectivity has been opened. Liberalization of telecom sector of the Indian
private sector participation and to bring about much needed improvement in the Quality of
Service. Through increased competition, the service providers are expected to become more
sensitive and responsive to the customer’s needs and choices and endeavor to give him greater
Satisfaction. The Telecom Regulatory Authority of India (TRAI) has the mandate to safeguard
the customer’s interests and to set the standards of quality of service. The rapid technological
advances which have taken place in the telecom sector have brought about significant
exchanges, and up gradation of external network, the fault rate has come down.
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TABLE OF CONTENTS
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SN Contents Pg No
I Executive Summary 4
1 Introduction 6
5 Research Methodology 35
8 Recommendations 68
Bibliography 72
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CHAPTER 1: INTRODUCTION
Abstract:
The ultimate aim of every organization is to sell the products, which the company
manufactures and to make profit. A successful product or service means nothing unless
the benefit of such a service can be communicated clearly to the target market. Today’s
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world is full of competition. And manufacturing the product is not enough, the same
product needs to be communicated or the consumers should be made known about the
availability of the product. Also it becomes essentially important to propagate the additional
features about the product.
Promotion plays an extremely important role in communications as if the public doesn't
know your item is for sale it will not sell. In the context of the marketing mix, promotion
represents the various aspects of marketing communication, that is, the communication of
information about the product with the goal of generating a positive customer response.
Marketing communication decisions include:
Brand Co-creation.
Promotional strategy (push, pull, etc.)
Advertising
Personal selling & sales force
Sales promotions
Public relations & publicity
Marketing communications budget
The main objective of the project was to promote the offer to the customers and to study the
effective product promotional tariff as well as the sales. Promotion is aimed at building
brand awareness. The introductory promotion also is intended to convince potential resellers to
carry the product, Increased advertising to build brand preference. Emphasis on differentiation
and building of brand loyalty. It serves as incentives to get competitors' customers to switch.
Expenditures are lower and aimed at reinforcing the brand image for continued products.
The effective tool of the Promotion Mix is Personal Selling. Personal Selling helps in
promoting the product by interacting directly with the customers and it helps in getting the
feedback on the spot. Personal Selling involves Sales men selling to the customer on a one to
one basis Through this study, the company can get known of the problems faced by the
existing customers and their concerns. The company can also get to know about the major
influencers of the customers, and the factors that influence the customers. Also the steps
taken by the customers in purchasing a phone can be known through this report. In short, the
buying behavior of the customers can be known through this report. The information
regarding the customer s satisfaction can also be known through this report.
Industry Description:
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The Indian telecommunications industry is one of the world's fastest growing industries, with
653.92 million telephone (landlines and mobile) subscribers and 617.53 million mobile phone
connections as of May 2010. It is also the second largest telecommunication network in the
world in terms of number of wireless connections after China. The Indian Mobile subscriber base
has increased in size by a factor of more than one-hundred since 2001 when the number of
subscribers in the country was approximately 5 million to 617.53 million in May 2010.
As the fastest growing telecommunications industry in the world, it is projected that India will
have 1.159 billion mobile subscribers by 2013. Furthermore, projections by several leading
global consultancies indicate that the total number of subscribers in India will exceed the total
subscriber count in the China by 2013. The industry is expected to reach a size of Rs 344,921
crore (US$ 73.47 billion) by 2012 at a growth rate of over 26 per cent, and generate employment
opportunities for about 10 million people during the same period. According to analysts, the
sector would create direct employment for 2.8 million people and for 7 million indirectly. In
2008-09 the overall telecom equipments revenue in India stood at Rs 136,833 crore (US$ 29.15
billion) during the fiscal, as against Rs 115,382 crore (US$ 24.58 billion) a year before.
The telecom network in India is the fifth largest network in the world meeting up with global
standards. Presently, the Indian telecom industry is currently slated to an estimated contribution
of nearly 1% to India’s GDP.
The Indian Telecommunications network with 635.51 million connections is the second largest
in the world. Today, it is the fastest growing market in the world and represents unique
opportunities for U.S. companies in the stagnant global scenario. The total subscriber base,
which has grown by 40% in 2005, is expected to reach 650 million in 2010.
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are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and
4 metro cities, covering 2000 towns across the country.
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1.1) Evolution of the Industry - Important Milestones:
Year Description
1851 First operational land lines were laid by the govt. near Calcutta(seat of
British Power)
1881 Telephone Service introduced in India
1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and Communication
Company(IRCC)
1947 Nationalization of all foreign telecommunication companies to form the
Posts, Telephone and Telegraph(PTT), a monopoly run by the
government’s Ministry of Communication
1985 Department of Telecommunications (DOT) established, an exclusive
provider of domestic and long-distance service that would be its own
regulator (separate from the postal system)
1986 Conversion of DOT into two wholly government-owned companies: the
Videsh Sanchar Nigam Limited (VSNL) for international
telecommunications and Mahanagar Telephone Nigam Limited (MTNL)
for service in metropolitan areas.
1997 Telecom Regulatory Authority of India created
1999 Cellular Services are launched in India. New National Telecom Policy is
adopted.
2000 DoT becomes a corporation, BSNL
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1.2) Major Players:
India's mobile telecom sector is one of the fastest growing sectors. Unlike in the 1990s when the
mobile phone was an elitist product, mobile operators now tap a mass market with mass
marketing techniques. "Unified licensing" rules allow basic and mobile operators into each
other’s territory, and have ushered in perhaps the final phase of industry consolidation.
It seems that only companies with deep pockets can effectively compete as primary operators
mobile markets. Economies of scale, scope, and end-to-end presence in long-distance as well as
local telecom, are desirable.
There are, besides, new challenges. Operators have to find new growth drivers for the wire line
business. There are problems of getting broadband to take off, of technology choice, of when to
introduce new technologies, and of developing a viable business model in an era of convergence.
India has the fastest growing mobile markets in the world. The mobile services were
commercially launched in August 1995 in India. In the initial 5-6 years the average monthly
subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base
in December 2002 stood at 10.5 millions. However, after the number of proactive initiatives
taken by regulator and licensor, the monthly subscriber additions increased to around 2 million
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per month in the year 2003-04 and 2004-05 to 7-8 million in 2007-08 and 2008-09 .
Although mobile telephones followed the New Telecom Policy 1994, growth was tardy in the
early years because of the high price of hand sets as well as the high tariff structure of mobile
telephones. The New Telecom Policy in 1999, the industry heralded several pro consumer
initiatives. Mobile subscriber additions started picking up. The number of mobile phones
services added throughout the country in 2003 was 16 million, followed by 22 millions in 2004,
32 million in 2005 and 635 million in 2010.
India has opted for the use of both the GSM (global system for mobile communications) and
CDMA (code-division multiple access) technologies in the mobile sector.
The mobile tariffs in India have also become lowest in the world. A new mobile connection can
be activated with a monthly commitment of US$ 5 only. In 2005 alone 32 million handsets were
sold in India. The data reveals the real potential for growth of the Indian mobile market.
As on Jan 2010 India has 635 million mobile phone subscribers. BSNL, Bharti Airtel, Hutch,
Idea, Aircel, Spice and MTNL are the main GSM providers in India. Reliance Communications
and Tata Indicom are the main CDMA providers in India.
Bharti Airtel
Airtel is providing cellular services in Delhi, Mumbai, Kolkata, Chennai, Andhra Pradesh,
Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Kerala, Madhya Pradesh,
Maharashtra, Goa, Orissa, Punjab, Rajasthan, Tamil Nadu, UP and West Bengal. Airtel is the
No.1 cellular service provider in India using GSM technology. Airtel has 23% market share in
India with a total subscriber base of 38 million.
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Reliance Communications
Reliance has both CDMA and GSM networks and total subscriber base of 29 million or 17%
market share. It has GSM network in Assam, Bihar, Himachal Pradesh, Kolkata, North East,
Madhya Pradesh, Orissa and West Bengal. Reliance has CDMA networks in other states and
cities.
BSNL is a state owned telecom company which has GSM presence in almost every cities and
towns. BSNL has 27 million subscribers with a market share of 16%.
Vodafone
Vodafone is another emerging GSM provider in India with coverage in Kerala, Mumbai, Delhi,
Kolkata, Chennai, Gujarat, Andhra Pradesh, Karnataka and Punjab with a total subscriber base of
27 million.
Tata Indicom
Tata Indicom is a main CDMA provider in India with 16 million subscribers all over India. Tata
Indicom has presence in almost every state and cities in India.
Uninor
The company holds a pan-India UAS licence to offer telecommunications services in each of
India’s 22 circles. It has also received spectrum to roll out these services in 21 of the 22 telecom
circles. From November 2009, Uninor will be owned 67.25% by Norwegian telecom giant
Telenor, and 23.75% by UNITECH. Uninor has started mobile services in India at the end of
2009, focusing on the GSM technology.
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CHAPTER 2: COMPANY PROFILE
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Uninor is a mobile telephony and network operator in India.The company holds a pan-India
UAS licence to offer telecommunications services in each of India’s 22 circles. It has also
received spectrum to roll out these services in 21 of the 22 telecom circles. From November
2009, Uninor will be owned 67.25% by Norwegian telecom giant Telenor, and 23.75% by
UNITECH. Uninor has started mobile services in India at the end of 2009, focusing on the GSM
technology.
History
The company Unitech Wireless was until 2009 a subsidiary of Unitech Group, holding a wireless
services licence for all 22 Indian telecom circles since 2008. In early 2009, Unitech Group and
Telenor agreed on a majority take-over by Telenor of Unitech's wireless business, including
Unitech Wireless' national-wide mobile licence. By March, May and November, Telenor
acquired a 33%, 49% and 60% stake in Unitech Wireless, respectively. In September, the mobile
operation changed its name to Uninor. On October 19 the Indian Cabinet Committee of
Economic Affairs (CCEA) announced that it has approved Telenor's acquisition of up to 74% in
Unitech Wireless, and the shareholder's agreement sets a 67.25% Telenor ownership in Uninor.
Uninor's strategy
Uninor is India's eighth nation-wide mobile operator, in a competitive landscape of 13 nation-
wide or regional mobile operators. The company is targeting an 8 % pan-Indian market share,
and the opening of one million retail points and breaking even on EBITDA within three years. It
will provide mobile communication and Value Added Services.
In order to reduce time-to-market, Uninor will outsource infrastructure and back-end services to
partner organizations with established core competencies. The operational model is low-cost
with a gradual network-build up, infrastructure sharing, GSM equipment at competitive cost,
full-scale IT-outsourcing and a long term cost and capex efficiency.
Uninor will organise with headquarters just outside Delhi (Gurgaon), and 11 regional hubs
covering one or more of the total of 22 telecom circles. Hub head offices are located in the
following cities:
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Kochi- Kerala Circle
Chennai - Chennai, Tamil Nadu
Bangalore - Karnataka Circle
Hyderabad - Andhra Pradesh Circle
Kolkata - Kolkata, West Bengal & Orissa Circle
Delhi / Noida (NCR) - Delhi, Western Uttar Pradesh, Uttarakhand & Rajasthan Circle
Patna - Bihar & Jharkhand Circle
Mumbai - Mumbai, Maharashtra & Gujarat Circle
Lucknow
Guwahati
Chandigarh
Indore
Ahmedabad
To quickly launch mobile services only nine months after the foundation of the new company,
Uninor has entered into network and base station service agreements with partners. Tower
sharing agreements are concluded with Wireless-TT Info Service Limited and Quippo Telecom
Infrastructure Limited. Telecommunications, network and radio equipment is to be supplied by
Alcatel-Lucent, Huawei Technologies India, Nokia Siemens Networks and Ericsson. The
company's IT services and infrastructure is to be shared with Wipro Technologies.
TELENOR
Telenor Group is the incumbent telecommunications company in Norway, with headquarters
located at Fornebu, close to Oslo. Today, Telenor Group is mostly an international wireless
carrier with operations in Scandinavia, Eastern Europe and Asia, working predominantly under
the Telenor brand. It is currently ranked as the sixth largest mobile phone operator in the world,
with more than 172 million subscribers. In addition, it has extensive broadband and TV
distribution operations in four Nordic Countries.
Technology
The first telephone service in Norway was offered in 1878 between Arendal and Tvedestrand,
while the first international telephone service between Christiania and Stockholm was offered in
1893. Automation of the telephone system was started in 1920 and completed in 1985. In 1946
the first Telex service was offered, and in 1976 satellite telephone connections to oil platforms in
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the North Sea were installed. In 1980 the first steps to digitalise the telephone network were
taken.
Televerket opened its first manual mobile telephone system in 1966, being replaced with the
automatic NMT system in 1981 and the enhanced NMT-900 in 1986. Norway was the first
country in Europe to get an automatic mobile telephone system. The digital GSM system came
into use in 1993; the GSM standard was developed in Norway by the Norwegian University of
Science and Technology (NTNU), but no mobile phone manufacturers emerged in the country.
The third generation of mobile technology with UMTS system began full operation 2004. The
Opera web browser was created in 1994 by Jon Stephenson von Tetzchner and Geir Ivarsøy
during their tenure at Telenor. Opera Software was established in 1995 after the pair went on to
continue development of their browser.
The corporation changed its name to Televerket in 1969. In 1994, the then Norwegian Telecom
was established as a public corporation. The authorities wanted to deregulate the telecom sector
in Norway, and sector by sector was deregulated between 1994 to 1998. An attempt to merge
Telenor with its counterpart in Sweden, Telia, failed in 1999, while both still were owned by
their respective governments. On December 4, 2000 the company was partially privatised and
listed on Oslo Stock Exchange and NASDAQ. The privatisation gave the company NOK 15,6
billion in new capital, the Government of Norway owning 77.7% of the company after the
privatisation. By 2006 the governments ownership has been reduced to 53%.
In the second half of the 1990s, Telenor became involved in mobile operations in a number of
countries: Russia (1994), Bangladesh, Greece, Ireland, Germany and Austria (1997), Ukraine
(1998), Malaysia (1999), Denmark and Thailand (2000), Hungary (2002), Montenegro (2004),
Pakistan (2004), Slovakia, Czech Republic, Serbia (2006). Operations in Greece, Ireland and
Germany were sold in 1999/2000 and profits were re-invested in the emerging markets. In
October 2005 Telenor acquired Vodafone Sweden, changing the name to Telenor in April 2006.
On 31 July 2006, Telenor acquired 100 per cent share of mobile operator Mobi 63, one of two
mobile operations existing in that moment in Serbia for Euro 1.513 billion.
Operations
Telenor offers a full range of telecommunication services in Norway, including mobile and fixed
telephony as well as Internet access and content. Telenor still dominates the market place in
Norway. However, competition has at times been intense in the mobile market and ADSL
market, but Telenor remains the largest company in both sectors.
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Telenor holds a prominent position in the Scandinavian Broadband and TV market, both with
regard to the number of subscribers and to the extent of coverage. The TV distribution is branded
Canal Digital.
Telenor used to provide a range of services related to satellite communication, including voice,
television and data before its Telenor Satellite Services division was purchased by Vizada in
2007.
Telenor Maritime Radio is responsible for the infrastructure for maritime radio communication
in Norway, and also includes five manned coast radio stations whose primary purpose is to
monitor the maritime radio traffic (over e.g. VHF and MF bands) and to assist marine vessels in
distress.
Telenor Cinclus develops and sells products related to Automatic Meter Reading and other
technologies related to machine to machine communication.
Telenor Research and Innovation (Telenor R&I, prior to September 1, 2006 known as Telenor
R&D) is Norway's largest research establishment within Information and Communications
Technology (ICT). Telenor R&I has research facilities in Fornebu, Trondheim and Tromsø. In
2009 Telenor R&I was merged with Global Coordination team, and is now called Telenor
GBD&R.
Telenor also owns 51,8% of EDB Business Partner that offers a wide range of IT-services. The
company is listed on Oslo Stock Exchange.
Telenor has sold a number of divisions after its privatisation, including Bravida, the former
installation division and Findexa, now part of Eniro that is responsible for telephone directories.
Mobile
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Old Style Telenor Mobile SIM
At year-end 2005, Telenor held controlling interests in mobile operations in Norway, Denmark,
Sweden, Serbia, Ukraine, Hungary, Montenegro, Thailand, Malaysia, Bangladesh, India and
Pakistan. Telenor also holds minority interests in mobile operations in Russia, having recently
sold a minority share in Austria.
In October 2006, Telenor entered into an agreement with Vodafone Group for the acquisition of
subsidiary Vodafone Sweden for a consideration of NOK 8,170 million, including assumption of
debt.
Effective from 26 October 2005, Telenor increased its economic stake in Total Access
Communication (DTAC) in Thailand to 56.9 per cent. Following further transactions based on
mandatory tender offers, Telenor's economic stake was raised to 69.3 per cent by year-end 2005.
Telenor's mobile commitments in Asia and Eastern and Central Europe are becoming
increasingly important and to ensure optimal follow-up, Telenor has appointed dedicated
Executive Vice Presidents for these regions. Telenor has also strengthened the co-ordination of
operational and human resources across all the countries in which the group has operations
through the appointment of two new Executive Vice Presidents to the Group Executive
Management.
During 2005, Telenor successfully extracted a number of cross-border synergies across the
group. Common technologies for optimal spectrum and network utilisation have been
successfully implemented at each of the group's operations, and Telenor maintains its focus on
adopting new technologies to improve service quality and reduce costs.
In order to harmonise the group's customer orientation across all markets, Telenor has developed
a common segmentation model that enables more effective targeting, while also providing
greater insight into the global markets. Telenor has developed a framework that provides
affiliates with a proven concept of developing target segmented offerings and optimised go-to-
market strategies.
Revenues from voice services include traffic charges, interconnection fees, and roaming charges.
All of Telenor's mobile operations derive the greatest share of their total revenues from voice
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services, and Telenor continues to focus on developing new products, services and initiatives to
increase Telenor's customer base and encourage higher usage.
Fixed-line
In Norway, Telenor provides communications solutions on a retail basis to both residential and
business customers. Offers include analogue (PSTN) and digital (ISDN) fixed-line telephony, as
well as broadband voice services over Internet Protocol (VoIP), Internet access via PSTN/ISDN
and digital subscriber lines (xDSL), value-added services and leased lines. Norway now has one
of the highest numbers of DSL lines per capita, currently at over 80% of households and steadily
growing.
Through the acquisitions of Bredbandsbolaget and Cybercity, made in July 2005 for NOK 4.5
billion and NOK 1.3 billion, respectively, Telenor has gained a strong position in the fast-
growing broadband markets in Sweden and Denmark. Bredbandsbolaget is Sweden's second
largest provider of broadband services, offering full triple-play with high-speed Internet, VoIP
and Internet Protocol (IP) television services on an all-IP fibre and xDSL network. Cybercity is
Denmark's third largest broadband supplier, providing xDSL-based Internet access and voice
services to both residential and business customers.
On 8 February 2006, Telenor increased its shareholding in the Swedish residential voice and
broadband provider Glocalnet AB by 13.5 per cent, for a consideration of SEK 136 million
(NOK 118 million), to secure a 50.1 per cent ownership interest. The acquisition triggered a
mandatory offer for all outstanding shares in Glocalnet AB. This offer is valid until 21 April
2006. As at 28 March 2006, Telenor holds a 96.6 per cent ownership interest in Glocalnet.
In the fourth quarter of 2005, Telenor disposed of its operations in the Czech Republic and
Slovakia with a loss of NOK 63 million.
In 2009, Norwegian performing rights agency TONO and the Norwegian section of the
International Federation of the Phonographic Industry (IFPI Norge) attempted to force Telenor to
block the Pirate Bay BitTorrent website. After several court judgements in favour of the ISP, the
case was finally dropped, with an admission from TONO that under Norwegian law the ISP
cannot be compelled to block access to the site.
Broadcast
Telenor also operates the national terrestrial broadcast network in Norway, Norkring. It is also
part owner of the company that will build the new digital terrestrial network, Norges Televisjon
and the content provider RiksTV. Telenor is also the leading provider of satellite broadcasting
services in the Nordic region, utilising three geostationary satellites.[citation needed] Telenor's key
objective is to further strengthen Broadcast's position in the Nordic region.
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Thor is a satellite-family owned by Telenor. On 11 February 2008 the THOR 5 satellite was
launched into geostationary orbit by a Proton rocket. The launch was provided by International
Launch Services using a launch vehicle built by Khrunichev Space Center. Cato Halsaa, CEO of
Telenor Satellite Broadcasting, said the launch, "Demonstrates our commitment to the satellite
industry and our firm belief that satellites will continue to play an important role as a distribution
platform for TV entertainment." Telenor operates three satellites from its satellite control center
at Fornebu (Thor2, Thor3 & Thor5), with Thor6 being launched in 2009.
Telenor Broadcast provides TV distribution services to more than three million households and
businesses in the Nordic region, offering basic tier, "minipay" and premium pay-TV services to
subscribers with Direct To Home (DTH) satellite dishes. In Norway and Sweden, Telenor also
offers basic tier TV services, pay-TV and Internet services to cable TV subscribers, and in
Denmark, the same services are marketed through a cable network; OE Kabel TV, acquired in
November 2005. In Finland, Telenor offers premium pay-TV services to subscribers with access
to digital terrestrial television (DTT). Telenor also offers TV services through privately owned
satellite master antenna TV networks (SMATV), which serve multiple dwellings such as housing
associations and antenna unions.
Telenor's wholly owned subsidiary Canal Digital is the leading TV content distributor in the
Nordic region, offering a wide range of national and international TV channels to households
that rely on DTH, cable, DTT or SMATV for their reception of television services.
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Promonte outlet in Budva, Montenegro.
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Bangladesh
Launched in 1997, Grameenphone was the first Telenor venture in the Asian telecom market.
Today, Grameenphone is the largest mobile provider in Bangladesh, serving more than 21
million subscribers; an increase of 53 per cent in the subscriber base in 2007. Telenor and its
partners have boosted network capacity and extended coverage to new and often remote areas,
connecting millions of previously unconnected people. Telenor holds 55.8 per cent of
Grameenphone. Grameenphone started trading its shares on the stock exchanges in Dhaka and
Chittagong on November 16, 2009. The headquarters are located in Dhaka.
Denmark
In Denmark Telenor owns the following companies: Telenor Denmark which is Denmark's
second largest provider of mobile telephony with 1.8 million subscribers and which provides IP
telephony and broadband and has 280.000 customers. Tele2 which provides telephony and
internet. CBB Mobil which provides low cost prepaid mobile telephony.
On 15 June 2009 Sonofon, Cybercity and Tele2 were unified under one international brand -
Telenor.
Furthermore the digital distributor of TV-channels Canal Digital owned by Telenor is also
present in Denmark.
Finland
Hungary
Pannon is Telenor's fully owned subsidiary in Hungary. The company offers mobile telephony,
has 3 million subscribers and a market share of 33%. The Hungarian branch changed name to
Telenor in May 2010.
India
Uninor had started its mobile services on 3rd December 2009, in 8 of the 22 circles in India.
Telenor has acquired a 67% equity stake in Unitech Wireless, which has the requisite
government approvals andlicences to provide mobile services pan-India. Uninor has rolled out its
network nation-wide under brand name Uninor.
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Malaysia
DiGi is Malaysia's third largest mobile telephony company, and Telenor owns 49% of the
company.
Montenegro
Pakistan
Telenor Pakistan is a wholly owned subsidiary that started operations on the 15th of March 2005
and holds one of six mobile licences in Pakistan. It's also the fastest growing cellular network of
Pakistan - this may be attributed to their aggressive marketing and advertising campaign.
Currently, Telenor holds the second largest GSM and the largest GPRS and EDGE coverage in
Pakistan which competes with Ufone. with the recent launch of its nationwide EDGE-enabled
network. It has achieved the third largest retailer network in Pakistan within the 2 years span of
its operations and has started operations in northern areas of Pakistan and in Pakistani
administered Kashmir. Telenor had reached its breakeven in the first quarter of 2007. Telenor
proactively participated in the earthquake disaster relief, and carried out a campaign for the
welfare of flood victims in Balochistan. The current CEO of Telenor Pakistan is Jon Eddy
Abdullah.
Russia's second largest mobile telephone company is VimpelCom, which Telenor owns about a
third of. VimpelCom also operates in Kazakhstan, Tajikistan, Ukraine, Uzbekistan and Georgia.
The company is listed on New York Stock Exchange.
For a description of Telenor's legal battle with Alfa Group over VimpelCom and Kyivstar, see:
Alfa Group.
Serbia
Telenor owns 100% of Telenor Serbia, one of the three mobile vendors in Serbia and has a
customer base of around 2.99 million. It is second mobile operator in the Serbian market.
Sweden
Telenor owns a number of different companies in Sweden. Telenor Sverige AB is the result of
Telenor's purchase of Vodafone Sweden in 2005, offering mobile telephone services with a
market share of approximately 15%. Telenor also owns Bredbandsbolaget, Sweden's second
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largest provider of broadband and the largest provider of IP telephony. Canal Digital offers TV
distribution as well.
Thailand
Telenor holds an indirect position in DTAC, a mobile telephony company in Thailand. DTAC
currently has about 14 million users which put DTAC as the second-largest mobile operator in
the Thai market.
Ukraine
Telenor owns 56.51% of the shares in one of Ukraine's largest GSM operators, Kyivstar.
Probable strategy
The company started commercial operations in Pakistan on 14 March 2005. It will continue its
focus on mobile operations in Scandinavia, Eastern Europe and Asia, become the largest
provider of TV and Broadband to customers in Scandinavia, and sell non-core assets outside this
scope.
Generally, the company's strong growth has derived from focusing on mobile communication in
low-income, but fast-growing markets. These potentials being fulfilled, new incomes could come
from either new market entries, or increased revenues from more services in existing emerging
markets, from both mobile and broadband services.
Telenor is currently taking part in a race to acquire a sixth mobile operator in Vietnam, in
competition with other global telco's, among them Vimpelcom. Telenor announced to the
business newspaper Dagens Næringsliv last winter that they are looking at possible prospects for
mobile operations in Africa.
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UNITECH
The Unitech Group is India's second largest real estate investment company, and has recently
claimed to be the largest real estate builder in the country.
The company is based in New Delhi and ranks 1484, in Forbes Global 2000 listing of the top
2000 public companies in the world by Forbes magazine, 32nd in India. Its construction business
includes highways, roads, powerhouses, transmission lines, and it has residential projects called
Unitech Cities/Uni World, in cities like Mumbai, Delhi, Kolkata, Chennai, Hyderabad,
Bangalore, Kochi, Noida,Greater Noida, Agra, Lucknow, Varanasi,Gurgaon, and Ghaziabad .
History
Founded by Ramesh Chandra and originally formed as United Technical Consultant Private Ltd
in 1972 as a soil investigation company. They later moved into civil engineering contracts in
1974.The company began to focus solely on real estate in 1986, and today it is India's second-
largest listed real estate firm.
Current events
They have recently formed a large joint venture with Norway based Telenor Group to create
Unitech Wireless., in August 2009, it secured a 50 billion rupee ($1 billion) loan from State
Bank of India (SBI.BO) to fund its mobile phone network rollout.
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CHAPTER 3: REVIEW OF LITERATURE
1. Debnath (2008) This study explain that the prime focus of the service providers is to
create a loyal customer base by benchmarking their performances and retaining
existing customers in order to benefit from their loyalty. With the commencement of
the economic liberalization in 1991, and with a view to expand and improve telecom
infrastructure through the participation of the private sector, the Government of India
permitted foreign companies holding 51 percent equity stake in joint ventures to
manufacture telecom equipment in India. The Indian Government has announced a
new policy, which allows private firms to provide basic telephone services. There
had been a monopoly of the state-owned department of telecommunications.
However, several companies are expected to benefit from the policy change.
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2. Bhatt (2008), in his study titled “A Study of Mobile Phone Usage Among the Post
Graduate Students” analyzed that it is important for mobile carriers, service
providers, content developers, equipment manufacturers, as well as for parents and
young people alike that the key characteristics of mobile technology is well
understood so that the risks associated with its potentially damaging or disruptive
aspects can be mitigated. This paper has tried to compare the usage difference by
gender with respect to the difference manufacturing and service provider companies.
3. Jha (2008), in his study analyzed that it is the youth which is the real growth driver of
the telecom industry in India. Considering this fact, the paper is an attempt to give a
snapshot of how frequently young people use their mobile phones for several
embodied functions of the cell phones. Data was collected from a sample of 208
mobile phone owners, aged between 20 and 29. The study sheds light on how
gender, monthly voucher amount and years of owning mobile phones influence the
usage pattern of this device. Findings of the study would be helpful for the telecom
service providers and handset manufacturers to formulate a marketing strategy for
different market segments.
4. Kumar (2008), in their study titled “Customer Satisfaction and Discontentment vis-avis
BSNL Landline Service: A Study” analyzed that at present, services marketing
plays a major role in the national economy. In the service sector, telecom industry is
the most active and attractive. Though the telecom industry is growing rapidly,
India's telecom density is less than the world's average telecom density as most of
India's market is yet to be covered. This attracts private operators to enter into the
Indian telecom industry, which makes the Bharat Sanchar Nigam Limited (BSNL)
more alert to run its business and survive in the market.
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5. Seth et al (2008), in their study titled “Managing the Customer Perceived Service
Quality for Cellular Mobile Telephone: an Empirical Investigation” analyzed that
there is relative importance of service quality attributes and showed that
responsiveness is the most importance dimension followed by reliability, customer
perceived network quality, assurance, convenience, empathy and tangibles. This
would enable the service providers to focus their resources in the areas of
importance. The research resulted in the development of a reliable and valid
instrument for assessing customer perceived service quality for cellular mobile
services.
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THEORETICAL BACKGROUND:
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delighted. If the performance matches the expectations the customer is satisfied. If the products
performance fall shorts of expectations the customer is dissatisfied.
1. Many companies are aiming for high satisfaction because customers who are just satisfied still
find it easy to switch when a better offer comes along. High satisfaction or delight creates an
emotional affinity with brand.
2. Variety of factors that affect customer satisfaction includes product quality, product
availability and after sales support such as warranties and services. Customer satisfaction is seen
as a proof of delivering a quality product or service. It is believed that customer satisfaction
brings sales growth, and market share. A company can always increase
customer satisfaction by lowering its price or increasing its services but this may result in lower
profits. Thus the purpose of marketing is to generate customer value profitability.
3. India is on the threshold of a new millennium. India chose for global economy, exposing her
to winds of change in the market place, which has expanded vastly and become fiercely
competitive. In the changed environment, decision makers view the marketing concept as the key
to success. Marketing in practice has to manage products, pricing,
promotion and distribution.
4. A successful product can be developed by exploding these opportunities. While delivering the
value of the consumer we make use of marketing support. This support is based on the
knowledge of consumers and distribution. Marketing support both at the introduction of products
and maturing is considered.
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6. The two major factors of marketing are the recruitment of new customers (acquisition) and the
retention and expansion of relationships with existing customers (base management). Marketing
methods are informed by many of the social, particularly psychology, sociology, and economics.
Anthropology is also a small, but growing,influence. Market research underpins these activities.
Through advertising, it is also
related to many of the creative arts.
7. For a marketing plan to be successful, the mix of the four "Ps"1 i.e. product, price,
place,promotion must reflect the wants and desires of the consumers in the target market.Trying
to convince a market segment to buy something they don't want is extremely expensive and
seldom successful. Marketers depend on marketing research, both formal
and informal, to determine what consumers want and what they are willing to pay for.Marketers
hope that this process will give them a sustainable competitive advantage. Marketing
management is the practical application of this process. The offer is also an
important addition to the 4P's theory.
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CHAPTER 4: OBJECTIVES AND SCOPE.
4. To find out the concentration of the GSM service providers in the consumer market.
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7. To assess the needs, requirements and expectations of the customers in order to assess
their current satisfaction levels.
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CHAPTER 5: RESEARCH METHODOLGY
“Marketing research means the systematic gathering, recording, analyzing of data about
problems relating to the marketing of goods and services”
Marketing research has proved an essential tool to make all the need of marketing management.
Marketing research therefore is the scientific process of gathering and analyzing of marketing
information to meet the needs of marketing management. But gathering of observation is must be
systematic. The systematic conduct of research requires:
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The quality of research project depends, among the other things, upon the suitability of the
method selected for it. Hence care should be taken in selecting the appropriate method of
research for any project. There are basically 5 types of research of which the researcher felt that
Descriptive Research was appropriate for this research.
Problem Identification
Research Design
Data Collection
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Data Analysis & Interpretation
Problem Identification:
The first and the most important step of marketing research is properly defining the
problem. In order to identify the research problem two categories of problem should be carefully
noticed.
Pre-Launch:
Understand customer expectations.
To understand Pune market and devise a suitable strategy.
To identify key problem issues faced by customers using competitor services.
To determine market share and user perception.
Post Launch:-
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A number of customers are not satisfied with services, new schemes and offers.
A number of customers are not satisfied with the current call rates.
A number of customers are not satisfied with the Free SMS schemes.
A number of customers are not satisfied with the service of customer care.
RESEARCH DESIGN:
Research design indicates the methods and procedure of conducting research study.
Research design can be done in following three types:-
1 Exploratory Research:-
Exploratory research focuses on the discovery of new ideas and is generally based on
secondary data.
2 Descriptive Research:-
Descriptive research is undertaken when the researcher want to know the characteristics
of certain groups.
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3 Causal or Experimental Researches:-
An experimental research is undertaken to identify causes and effect relationship between
two variables.
The Research Design is: Descriptive Research Design
Basically there are two types of data i.e. secondary and primary:
1 Observation Method:
2 Survey Method:
3 Experimental Method.
4 Panel Method.
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It can be collected from internal as well as external sources
1 Internal Source:
Various internal sources like employee, books, sales activity, stock availability, product
cost, etc.
2 External Sources:
Libraries, trade publications, literatures, etc are some important sources of external data.
The Researcher has used primary data for the core purpose of the project and this primary
data has been gathered by survey method. The researcher has also used secondary data.
C) Sampling Plan:
The researcher has design a sampling plan that is consist of five decisions.
I) Sampling unit:
Who is to be surveyed?
The Researcher has selected youngsters, businessmen, employees to conduct survey and to
measure satisfaction level.
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There are two types of sampling i.e. Probability Sampling and Non – probability Sampling.
i) Probability Sampling : -
Probability sampling means each unit of the universe has equal chance of getting selected. The
most frequently used probability sampling methods are as below:
a) Simple Random Sampling.
b) Stratified Random Sampling.
c) Multi-stage Random Sampling.
d) Cluster Sampling.
e) Multi – phase Sampling.
f) Replicated Sampling.
Sample size means limited numbers of respondents covered under the research study from a
population and the researcher has taken a survey of 200 respondents to know the satisfaction
level of customer.
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The researcher’s area for survey was:
Pimpri
Chinchwad
Shivajinagar, Pune.
Wakad, pune
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CHAPTER 6: DATA ANALYSIS
Purpose:-
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The purpose was to understand potential customers and their behavior better.
Yes 178
No 22
180
160
140
120
Yes No
100
80
60
40
20
Phone Expensive 17
Costly Service provider 3
other 2
18
16
14
10
8
other
6
Airtel 31
Idea 47
Reliance 26
Bsnl 31
Vodafone 30
Docomo 32
Other 3
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50
45
35
30
Bsnl Vodafone Docomo
25
20
15
Other
10
Interpretation:
Idea is the market leader in Pune. 89percent people in Pune use phone. 11per don’t
use because mobiles are still costly for them.
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A) Coverage Area B)Voice Clarity C) Tariff Plan D) Extra Services.
Purpose: to understand consumer behavior and requirements.
Yes 102
No 98
102
101
100
Yes No
99
98
97
96
Price 58
Brand Name 14
Services 30
60
50
40
20
10
Coverage Area 24
Voice Clarity 32
Tariff Plan 30
Service 10
35
30
25
Coverage Area Voice Clarity Tariff Plan
20
15
Service
10
Interpretation: Voice clarity and a nice tariff plan were the major determinants
of customer retention. Also call rates were major determinants of customer
satisfaction.
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3. How many calls on an average in a day?
A) <=3 B) >3 & <=7 C) >7 & <=10 D) >10
Purpose: To understand customer call pattern and rate.
<=3 21
>3 & <=7 63
>7 & <=10 83
>10 33
90
80
70
50
40 >10
30
20
10
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100
90
80
70
60
0-3 min 3-10 min 10 or more min
50
40
30
20
10
Interpretation: maximum callers made short calls, very few were long call
makers.
70
60
50
Never 3-Jan 5-Mar
40
30 More than 5
20
10
Interpretation: There was little loyalty in customers, but beyond a limit they
avoided changes.
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6. Your average weekly expenditure (in Rs.) on mobile service.
A) 0-50 B) 51-100 C) 101-250 D) 251 & Above.
90
80
70
Rs 0-50 Rs 51-100
60
50
40
Rs 101-250 Rs 250 and above
30
20
10
Interpretation:
Maximum users could spend beyond Rs 100 a week. There are many users who
spend less than 50 a week.
7. Where your maximum calling lies?
A) Outside Maharashtra B) Inside Maharashtra C) Mumbai
Purpose: To understand calling destinations and STD calls.
Outside Maharashtra (S.T.D.) 45
Inside Maharashtra (Local) 79
Mumbai 76
80
70
Outside Maharashtra (S.T.D.)
60
50
Inside Maharashtra (Local)
40
30
20 Mumbai
10
GPRS 87
Caller tunes 55
Cricket Updates 44
others 14
90
80
70
60
50
GPRS Caller tunes Cricket Updates others
40
30
20
10
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Airtel Reliance Vodafone Idea Uninor Tata Docomo
BSNL
11%
8% 29%
9%
11%
19%
13%
Interpretation:
Major respondents using mobile are enjoying Idea services. 9% of the respondents use Uninor,
29% respondents use Idea. Uninor captured maximum users from Docomo.
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Below 400 18
400-700 3
Interpretation:
Here 18 Respondent spend below Rs.400 on their monthly on their mobile,
while 3 spend Rs400-Rs700 on their mobile. Only 1 spends more than Rs700 on their mobile
expenses.
Purpose:
The purpose behind this question is to the type of connection they prefer.
12%
Prepaid
Postpaid
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88%
Interpretation: 88% of the respondent prefer prepaid connection, while only 12% prefer
postpaid, so uninor may delay postpaid launch.
Purpose:
The purpose behind this question is to know which services are more helpful to the
respondent.
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Value
Added
Services
Call Rates
18%
37%
Network
24%
SMS
Rates 21%
Interpretation:
Here major Respondents mainly use call rates services of Uninor.21% of the respondents use
Uninor for SMS services while only 18% of the respondents use Uninor for Value Added
Services.
Purpose:
The purpose behind this question is to know what service they like most in their current
opertor.
Call Rates
SMS Rates
30% Purchasing service
Customer care
17% Network
Value Added Services
8%
14%
Interpretation: It shows that customer like service most in their current opertor is network
& call rates.
21%
12%
Interpretation:
It shows customer mainly face poblem in call rates.They still wants low call rates.
Purpose:
The main purpose of this question is to know customer preferences towards call rates
plans.
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4%
25%
Per minute
Per second
Other
71%
Interpretation:
71% of respondents use per minute call rate,while only 25% are using per second billing
plan.
NO 35
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17
YES
NO
83
Interpretation:
Here 83% of respondents are aware about UNINOR Services.
9. Source of awareness?
Purpose: The purpose behind this question is to know from which source the respondents
came to know about UNINOR.
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15%
36%
Advertisements
Hoardings
20%
Newspapers
Mouth Publicity
29%
Purpose:
Purpose behind this question is to the awareness of uninor dynamic pricing.
Yes 129
No 71
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Interpretation:
36% 64% of
respondents are aware of
yes uninor dynamic pricing.
No
64%
PURPOSE:-
Purpose behind this question is whether customer want to shift to uninor.
Yes 77
No 123
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39%
Yes
No
61%
Interpretation:
39% of respondent want to shift to uninor, while 61% want to stick with
their current operator.
Purpose:-
Purpose behind this question is to whether customer found Uninor’s
promotional strategy appealing as compared with others.
No 44
Yes 156
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2nd Qtr
28%
1st Qtr
72%
Interpretation:
28% of repondent say promotion was less appealing., while 78%
say promotion was appealing.
No 115
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Yes
43%
No
58%
No 55
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2nd Qtr
28%
1st Qtr
72%
Interpretation: 72% customers were annoyed by the lack of quality service by Uninor as
compared to its promotion.
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Customer Service 41
Issues
Clarity voice
Connectivity/ Coverage
Cost
Customer Service
Interpretation : Maximum respondents felt that Uninor’s Coverage area and connectivity
was below expectations and needs a major improvement without which more customers will be
driven off from the firm.
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CHAPTER 7: FINDINGS/CONCLUSION
Follwing are the conclusion that the researcher found after the survey.
From above analysis, within a month Uninor was able to capture 9 percent market share
due to heavy promotion.
From the above analysis the researcher concludes that major respondents are dissatisfied
with some of the major services like call rates, SMS rates and new schemes & offers.
Major respondents from all respondents use services of other service providers as Uninor is
a new entrant and respondents lack awareness.
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Major respondents are youngsters and IT professionals so they need more facilities internet
and low call rates, but Uninor dissatisfies these age group as their call rates are high and
there is no internet service.
A major portion of customers are aware of Uninor service.
Uninor was a success in terms of creating awareness and spreading information.
Majority of customers are aware of UNINOR shows that promotion strategy adopted by
UNINOR is effective.
Uninor’s USP was its Dynamic Pricing.
Customers could understand its Dynamic Pricing. Thus it was a success.
Uninor should not focus much on introducing Post Paid connections yet.
Uninor should improve its GPRS and other VAS features.
Customers avoided Uninor due to lack of connectivity and coverage area.
Brand Co-creation methodology used by Uninor during its launch was a success.
Costumers could connect themselves to the brand.
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CHAPTER 8: RECOMMENDATIONS
Following are some of the suggestions given by the researcher so that Uninor
can serve people and its customers in an improved way:
Uninor should focus on better network because mostly customers want better network
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Uninor should provide more offers and also should launch post-paid services so that the
number of customers increase.
Uninor should bring introduce some new SMS schemes and night calling facilities for
students , youngsters.
Uninor should provide more schemes and facilities for the IT professionals as pune is the
IT hub,so as to increase a potential customer base.
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BIBLIOGRAPHY
Books:
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“Develop a market research” Marketing Management – Philip Kotler, Kevin Lane Keller,
pg 93.
“Blue Ocean Strategy” Strategy Dynamics- Kim Warren. Pg 101.
“Develop a blue ocean strategy” Harvard Publication, Pg 52, Pg 173.
“Brand Ingredients, Brand Valuation models” Brand; Philip Kotler, Pg 353.
Research Methodology- C.R.Kothari.
Websites:
http://en.wikipedia.org/wiki/Customer_satisfaction
http://en.wikipedia.org/wiki/Uninor
www.iimcal.ac.in/community/consclub/reports/telecom.pdf
www.scribd.com
TechWorld.com
Network18.in
Experienta.com: Article : Putting people first.
Magazines:
Mobile planet
Digit
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