A

PROJECT REPORT
ON

“SALES PROMOTION AND ADVERTIESMENT

OF MTS”

SUBMMITTED BY
Mr. DIGVIJAY SINGH
ROLL NO: 070

UNDER THE GUIDENCE OF:-

Prof. ANJALY AURANGABADKAR

IN PARTIAL FULFILLMENT OF THE AWARD OF

POST GRADUATION DEPLOMA IN MANAGEMENT
(MARKETING)

RAJEEV INSTITUTE OF BUSINESS MANAGEMENT

PUNE-411033
(2009-2011).

ACKNOWLEDGEMENT

1
 “Surpassing milestones towards a mission sometimes gives us such
degree of jubilance that we tend to forget the precious guidance and help
extended by the people to whom the success of the mission is solely
dedicated.”

My mission is dedicated to those persons without whom my summer

project would not have been completed successfully.

Firstly I would like to express my gratitude to Mr. Arunodaya Bajpai,

SYSTEMA SHYAM TELESERVICES LTD., In 48 Cities 13 telecom circle, And
Prof. Anjali Aurangabadkar my project mentors for giving me all the
support and guidance needed to complete this project. It was because of
their efforts that I could put my ideas in logical sequence. In addition I
would like to thank them for providing me with all the information,
guidance and advice that I needed to complete this research.

I would like to thank the entire MTS (SSTL) customers who maintained
their patience during the long interview sessions & call. Without their help
& responses this project would not have been possible.

Finally I would like to thank my professors at the RAJEEV INSTITUTE OF

BUSINESS MANAGEMENT, MY PARENTS, Mr.ARUNODAYA BAJPAI and My
FRIENDS who were a constant source of encouragement and learning.

2
 DECLARATION

I here by declare that the project report titled “SALES PROMOTION AND
ADVERTIESMENT of MTS” Written and submitted by me to the RAJEEV
INSTITUTE OF BUSINESS MANAGEMENT,PUNE . In partial fulfillment of
the requirements for the award of degree of PGDM (AICTE) under the
guidance of Mr. Arunodaya Bajpai Enterprise Sales Head is my original
work and the conclusion drawn and the suggestions given there own are
based on the data collected by myself.

Place: Pune
Date: DIGVIJAY SINGH
PGDM 3th Sem

3
 EXECUTIVE SUMMARY OF THE PROJECT

I have done my summer project from MTS (Sistema Shyam

Teleservices Ltd.) PUNE. My project title was “Comparative Study Of High
Speed Data Card of MTS With Reliance Net connect Broadband And Tata
Photon ”. My project time duration was of 2 months. During this time
period, I have got lot of experience and knowledge because during this
time period, I did not only theoretical work but also practical work which
is very important for a manager.
The company is a part of Sistema & Shyam Group, one of the India's
Growing provider of telecommunication services. The business at SSTL has
been structured into the mobile services group provides CDMA mobile
services and Wireless broadband Services ( HSD) in 57 cities across India
in 13 telecom circles,
In order to fulfill my project objectives I had to go to market & touch
those customers which are prospects of MTS wireless broadband or its
competitor Brands. Competitor Brand are (BSNL, Reliance, TATA). I have
also conducted a short questionnaire. Finally I would like to thank MTS
for providing me such golden opportunity to work in a dynamic
environment.

4
 INDEX
Chapters
Executive summary

1. Introduction

2. Company Profile

3. Problem Identification
Comparison of Data
4. Research Methodology

5. Data Analysis, Interpretation

SWOT Analysis

6. Findings and Suggestion

Bibliography

5
INTRODUCTION

6
This chapter explains about the background and states the objectives of
the project. The purpose of the study is to determine the impact of
promotional activity for selling MTS products in Pune city only.

Promotion is comprehensive terms, and covers the entire gamut of

advertising, publicity, public relations, personal selling and sales
promotion. Sales promotion is thus a part of promotion and is restricted to
direct inducement on a short term basis services.

The same promotional strategy was applied by MTS to promote their

products and boost up its sales. The MTS performed promotional activities
like canopy, road shows, EPP, broacher distribution, etc.

In the present competitive world if any business organization has to

survive it needs to keep an eye on various forces operating in the market.
More over competitors constantly try to win over others. In this scenario,
every business organization needs to monitor the changes taking the
market so that they are not caught. Market research is an efficiency tool in
the hands of a marketer that helps him to take changes taking place in the
market.

7
 In the global telecommunications market, it’s hard to imagine a more
fertile environment for explosive growth than India. With a large, young
and tech-savvy population, an economy whose growth rate is second only
to China and telephone penetration of just seven percent, India stands as
a textbook example of how demand for communications services can be
explosive if the conditions are right. A few years ago, when forecasters
predicted a fourfold increase in subscribers in three years–to 200 million–
it seemed impossible. Since then, however, market growth has
outstripped the unlikely forecast, and no operator has been better poised
to capitalize on this opportunity than Bharti Airtel.

The Indian telecom market generated revenues of approximately USD 20

billion in 2006–07. It registered a CAGR of approximately 22 percent from
2002–03 to 2006–07. The CAGR from 2006–07 to 2009–10 is expected to
stabilise at 21 percent. Apart from mobile telephony services, other value-
added services are also gaining importance.

8
 Telecom Services – India

Revenues of Indian Telecom Industry: 2002–10 (USD billion)

50 43
enue

billio

40
Rev

(US

32
n)
D
s

30 28
20
20 15
9 10 11
10

0
02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10

Telecom in the real sense means transfer of information between

two distant points in space. The popular meaning of telecom always
involves electrical signals and nowadays people exclude postal or any
other raw telecommunication methods from its meaning. Therefore, the
history of Indian telecom can be started with the introduction of
telegraph.

9
INTRODUCTION OF TELEGRAPH:

The postal and telecom sectors had a slow and uneasy start in India. In
1850, the first experimental electric telegraph Line was started between
Kolkata and Diamond Harbor. In 1851, it was opened for the British East
India Company. The Posts and Telegraphs department occupied a small
corner of the Public Works Department at that time. Construction of 4,000
miles (6,400 km) of telegraph lines connecting Kolkata (Calcutta) and
Peshawar in the north via Agra, Mumbai (Bombay) through Sindwa Ghats,
and Chennai in the south, as well as Ootacamund and Bangalore was
started in November 1853.
Dr. William O'Shaughnessy, who pioneered telegraph and telephone in
India, belonged to the Public Works Department. He tried his level best for
the development of telecom through out this period. A separate
department was opened in 1854 when telegraph facilities were opened to
the public.

INTRODUCTION OF THE TELEPHONE

In 1880, two telephone companies namely The Oriental Telephone

Company Ltd. and The Anglo-Indian Telephone Company Ltd. approached
the Government of India to establish telephone exchanges in India. The
permission was refused on the grounds that the establishment of
telephones was a Government monopoly and that the Government itself
would undertake the work. By 1881, the Government changed its earlier
decision and a license was granted to the Oriental Telephone Company
Limited of England for opening telephone exchanges at Kolkata, Mumbai,
Chennai (Madras) and Ahmadabad.

10
January 28, 1882, is a Red Letter Day in the history of telephone in India.
On this day Major E. Baring, Member of the Governor General of India's
Council declared open the Telephone Exchange in Kolkata, Chennai and
Mumbai.

The exchange at Kolkata named "Central Exchange" was opened at third

floor of the building at 7, Council House Street. The Central Telephone
Exchange had 93 number of subscribers. Bombay also witnessed the
opening of Telephone Exchange in 1882.

FURTHER DEVELOPMENT:

July 23, 1927 - Radio-telegraph system between the UK and India, with
beam stations at Khadki and Daund, inaugurated by Lord Irwin by
exchanging greetings with the King of England.
1933 - Radiotelephone system inaugurated between the UK and India.
1953 - 12 channel carrier system introduced.
1960 - First subscriber trunk dialing route commissioned between Kanpur
and Lucknow.
1975 - First PCM system commissioned between Mumbai City and
Andheri telephone exchanges.
1976 - First digital microwave junction introduced.
1979 - First optical fiber system for local junction commissioned at Pune.

11
1980 - First satellite earth station for domestic communications
established at Secunderabad.

1983 - First analog Stored Program Control exchange for trunk lines
commissioned at Mumbai.
1984 - C-DOT established for indigenous development and production of
digital exchanges.
1985 - First mobile telephone service started on non-commercial basis in
Delhi.
1902 - First wireless telegraph station established between Saugor
Islands and Sand heads.

1907 - First Central Battery of telephones introduced in Kanpur.

1913-1914 - First Automatic Exchange installed in Shimla.

While all the major cities and towns in the country were linked with
telephones during the British period, the total number of telephones in
1948 was only around 80,000. Even after independence, growth was
extremely slow. The telephone was a status symbol rather than being an
instrument of utility. The number of telephones grew leisurely to 980,000
in 1971, 2.15 million in 1981 and 5.07 million in 1991, the year economic
reforms were initiated in the country.
While certain innovative steps were taken from time to time, as for
example introduction of the telex service in Mumbai in 1953 and
commissioning of the first [subscriber trunk dialing] route between Delhi
and Kanpur in 1960, the first waves of change were set going by Sam
Pitroda in the eighties. He brought in a whiff of fresh air. The real
transformation in scenario came with the announcement of the National
Telecom Policy in 1994.

12
 BROADBAND:

Broadband services are used by Telecom Companies

worldwide to leverage their existing investment in copper in the
localINDIA
loop. EMERGING
Copper as a AS A MAJOR
last-mile PLAYER
delivery medium has the
advantage of near-universal penetration, and local Telecom
InCompanies
1975, the are increasingly
Department eyeing broadband
of Telecom (DOT) wasservices on from
separated it as P&T.
a
DoT means of ‘hitting back’
was responsible t cable operators
for telecom who
services in have country
entire begun infringing
until 1985
onMahanagar
when their turfTelephone
by theirNigam
bundled Internet
Limited offerings.This
(MTNL) article
was carved out of DoT
attempts
to run to demystify
the telecom theofbasic
services Delhitechnologies
and Mumbai.involved in broadband
In 1990s the telecom
delivery,
sector the GOI’s
was opened up byattempts to promote
the Government broadbandusage
for private investment in the
as a part
country, and BSNL’s broadband plans as part
of Lberalisation-Privatization-Globalization of its
policy. ambitiousitNIB-II
Therefore, became
project.to separate the Government's policy wing from its operations
necessary
wing. The Government of India corporatized the operations wing of DoT
on October 01, 2000 and named it as Bharat Sanchar Nigam Limited
What
(BSNL). is broadband?
Many private operators, such as Reliance India Mobile, Tata
Telecom, Vodafone, BPL, Bharti, Idea etc., successfully entered the high
 
potential Indian telecom market.

To state the obvious, ‘broadband’ indicates a means of

connectivity at a high or ‘broad’ bandwidth. In India, TRAI has
defined broadband as any connectivity delivered to the end user at
a bandwidth greater that 256 kbps. (So that immediately excludes
the popular DIAS services offered by BSNL at many places).

 WhyCOMPANIES
INDIAN is bandwidth so important
PROVIDING HIGHand howDATA
SPEED to estimate
CARD ORhow much
WIRELESS
bandwidth
BROADBAND is required for a particular application? A small example
SERVICES:
will help illustrate the concept. Assuming you wish to receive a VCD

1.quality
BSNL.transmission ( incidentally, this is also the quality offered by
2.low cost desktop videoconferencing applications ) over your
TATA.
3.broadband connection, the maths is:
RELIANCE.
4.  Pixel
MTS.count per frame – 200 X 300 = 60000

Frame rate -- 30 per sec (minimum)

Bandwidth required : 200 X 300 X 30 = 1800000 = 1.8 Mbps

 Of course, the above is raw transmission rate – modern

technologies use advance compression
13 algorithms to reduce the
data rate to a great extent.
TATA TELESERVICES LTD

Tata Teleservices Limited spearheads the Tata Group's presence in the

telecom sector. The Tata Group had revenues of around US $75 billion in
financial year 2008-09, and includes over 90 companies, over 350,000
employees worldwide and more than 3.5 million shareholders.

Incorporated in 1996, Tata Teleservices Limited is the pioneer of the

CDMA 1x technology platform in India. It has embarked on a growth path
since the acquisition of Hughes Tele.com (India) Ltd [renamed Tata
Teleservices (Maharashtra) Limited] by the Tata Group in 2002. It
launched mobile operations in January 2005 under the brand Tata
Indicom and today enjoys a pan-India presence through existing
operations in all of India's 22 telecom Circles. The company is also the
market leader in the fixed wireless telephony market with its brand
Walky. The company has recently introduced the brand Photon to provide
a variety of options for wireless mobile broadband access. The company's
network has been rated as the 'Least Congested' in India for last five
consecutive quarters by the Telecom Regulatory Authority of India
through independent surveys.

Tata Teleservices Limited now also has a presence in the GSM space,
through its joint venture with NTT DOCOMO of Japan, and offers
differentiated products and services under the TATA DOCOMO brand
name. TATA DOCOMO arises out of the Tata Group's strategic alliance with
Japanese telecom major NTT DOCOMO in November 2008. TATA DOCOMO
has received a pan-India license to operate GSM telecom services-and has
also been allotted spectrum in 18 telecom Circles. The company has rolled
out GSM services in 14 of India's 22 telecom Circles in a quick span of
under six months. The company plans to launch pan-India operations by
the end of FY 2009-10.

TATA DOCOMO marks a significant milestone in the Indian telecom

landscape, and has already redefined the very face of telecoms in India,
being the first to pioneer the per-second tariff option-part of its 'Pay for

14
What You Use' pricing paradigm. Tokyo-based NTT DOCOMO is one of the
world's leading mobile operators-in the Japanese market, the company is
the clear market leader, used by over 50 per cent of the country's mobile
phone users.

Today, Tata Teleservices Limited, along with Tata

Teleservices (Maharashtra) Limited, serves over 58 million customers in
more than 410,000 towns and villages across the country, with a bouquet
of telephony services encompassing mobile services, wireless desktop
phones, public booth telephony, wireline services and enterprise solutions.

In December 2008, Tata Teleservices Limited announced

a unique reverse equity swap strategic agreement between its telecom
tower subsidiary, Wireless TT Info-Services Limited, and Quippo Telecom
Infrastructure Limited-with the combined entity kicking off operations in
early 2009 with 18,000 towers, thereby becoming the largest independent
entity in this space-and with the highest tenancy ratios in the industry.
The WTTIL-Quippo combine is targeting over 50,000 towers by the end of
FY 2010-11.

RELIANCE COMMUNICATIONS

Reliance Communications, formerly known as Reliance Infocomm, along

with Reliance Telecom and Flag Telecom, is part of Reliance
Communications Ventures (RCoVL). It is the second largest mobile

15
operator in India, based on number of subscribers. According to National
Stock Exchange data, Anil Dhirubhai Ambani controls 66.77 per cent of the
company, which accounts for more than 1.36 billion shares.

It is the flagship company of the Reliance-Anil Dhirubhai Ambani Group,

comprising of power (Reliance Energy), financial services (Reliance
Capital) and telecom initiatives of the Reliance ADAG. It uses CDMA2000
1x technology for its existing CDMA mobile services,and GSM-900/GSM-
1800 technology for its existing/ newly launched GSM services.

RelCom is also into Wireline Business throughout India and has the
largest optical fiber communication (OFC) backbone architecture [roughly
110,000 km] in the country.

Reliance Communications has launched its Direct To Home (DTH)

TV also, known as "Big TV". RelCom have presence across all B2C
communications channel in one of the fastest growing markets in the
world.

BHARAT SANCHAR NIGAM LIMITED

Bharat Sanchar Nigam Limited (known as BSNL, India Communications

Corporation Limited) is a state-owned telecommunication company
in India. BSNL is the sixth largest cellular service provider, with over
57.22 million customers as of December 2009 and the largest land line
telephone provider in India. Its headquarters are at Bharat Sanchar
Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the
status of Mini Ratna, a status assigned to reputed public sector companies
in India.

BSNL is India's oldest and largest Communication Service Provider (CSP).

Currently has a customer base of 90 million as of June 2008. It has

16
footprints throughout India except for the metropolitan cities
of Mumbai and New Delhi which are managed by MTNL. As on March 31,
2008 BSNL commanded a customer base of 31.55 million Wireline, 4.58
million CDMA-WLL and 54.21 million GSM Mobile subscribers.

BSNL's earnings for the Financial Year ending March 31, 2009 stood at
INR 397.15b (US$7.03 billion) with net profit of INR 78.06b (US$ 1.90
billion). BSNL has an estimated market value of $ 100 Billion. The
company is planning an IPO with in 6 months to offload 10% to public in
the Rs 300-400 range valuing the company at over $100 billion.

OBJECTIVE OF THE STUDY

 To study the marketing strategies of MTS.

 To find out the effectiveness of promotional strategies of MTS.

 To ascertain the impact of promotional activity on purchase

decision.

 To find out the measures to boost up sales.

 To conduct promotional activity to boost sales of MTS.

 To analyze the awareness among public about the MTS products.

17
  To find out the reasons for low sales of the products.

 To conduct promotional activity in various places like shopping

malls, residential areas corporate etc.

 To increase the prescription rate among the respondents by using

promotional tools.

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

IMPORTANCE OF THE STUDY

 To study marketing strategies of MTS to increase the market

share.

 To find out competitors of MTS in Pune City.

 To find out market channels to implement the strategies of

MTS.

18
 To find out how MTS react to the technology changes in the
communications sectors.

SCOPE OF THE STUDY

1. To trap the huge market of Broadband.

2. To help the company to find out the sales potential in pune

region.

3. To know about the market competition by this project.

19
 4. To find out the customer satisfaction of the consumers
about the products.

5. To understand the business of MTS products in the market.

6. To study the different factors affecting on MTS Broadband

services.

7. To retain the existing user and to convert the new

prospects into buyers.

LIMITATIONS OF STUDY

 Most of the customers at individual as well as at corporate level

want to take broadband rather than USB modem.

 The project was undertaken only in pune city hence it does not give
a clear picture of the perceptions of people elsewhere.

20
 The answers given may not always be genuinely answered because
the respondent may always not be in the position of giving the right
state of mind in giving the answers.

 The project was only for two months.

 The consumers were scattered in an unequal manner.

 The consumers who were interviewed were busy so it was difficult

to meet them.

 One of the major problems is that the clients are not willing to give
appointment due to some invalid reasons as well as valid reasons.

 Sometimes it also happens that the information that the clients

reveal may not be the true information which acts as a barrier to
conduct the research.

21
22
 COMPANY PROFILE

COMPANY INTRODUCTION

WHAT IS MTS?

 The leading mobile phone operator in Russia and CIS

 A top 10 global mobile operator
 One of the 100 most powerful brands in the world*

23
 MTS India, is the Indian arm of MTS (a JV between India’s Shyam
Teleservices), the largest mobile service provider in Russia. As we
introduced a few weeks ago about the launch of MTS mobile services in
Karnataka state, we’ll now see how MTS functions in providing data
services, which is now becoming as vital as the basic communication
service.
MTS India has 2 types of Internet services, one MBlaze which works on
EVDO and other MBrowse which works on CDMA network.

CORPORATE STRATEGY

MTS’ primary goal is to be the leading communications operator in Russia

and the CIS, providing its customers with mobile and fixed telephony,
high-speed Internet access at home and on the move, cable TV and the
widest choice of legal content on the market. In 2009, the Company
moved beyond the simple mobile access horizontally and vertically,
through the acquisition of Comstar-UTS, the rapid build-out of a
proprietary distribution network and the launch of its first online content
platform, Omlet.ru.

The development of MTS beyond mobile access is part of our strategic

initiative “3i”. Our direction is based on three main principles.

 INTEGRATION:
Developing new pipelines and customer touch points. We aim to provide
a comprehensive integrated service portfolio for all of our customers’
communication needs, through both fixed-line and wireless access. The

24
networks and platforms we develop will create a seamless – and
unsurpassed – user experience.

INTERNET:
Offering universal connectivity. Our customers increasingly expect
faster and broader connectivity as more devices and services depend on
integrated mobile and fixed networks. Our goal is to create smarter
pipelines so customers can realize the full benefits of today’s technologies,
while creating additional value for MTS. So-called “smart pipes” will allow
us to offer market-leading services, enable transactions and bring us
closer to our customers.

INNOVATION:
Differentiation MTS from our competitors by offering a unique mix of
products and services. We will offer exclusive devices, distinct packages of
services catering to all customer segments and a market-leading end-to-
end user experience at home, work and on the move.

VISION OF COMPANY

 Booming and prosperous India driven by hundreds of millions

success
Stories

 MTS will be the driving force for bringing New India into the fold of
Opportunities. This drive for progress arises from our deep urge–to
explore,

25
 to create, to achieve, to change, to improve.

MISSION OF COMPANY

 Enable New India’s continuous renewal

MTS believe the power of connectivity will provide New India with a new
sense of identity and opportunity. We will provide this connectivity in a
simple, effective and affordable manner.

AMBITION OF COMPANY

 Outdo Yourself
MTS will encourage the use of connectivity to rise above social, cultural,
occupational and economic challenges, thus becoming the undisputed
champion of those who have the courage to go against all odds.

HISTORY OF COMPANY

MTS was established in October 1993 by Moscow City Telephone Network

(MGTS), T-Mobile Deutschland GmbH (T-Mobile), an affiliate of Deutsche
Telekom AG, Siemens AG (Siemens) and several other shareholders. In
late 1996, Sistema JSFC acquired a majority stake in MTS and has
remained the primary owner ever since.

26
 MTS was the first company to launch GSM services in the Moscow region
in 1994. In subsequent years, MTS has expanded rapidly in Russia largely
through the acquisition of smaller independent players and became the
leading national mobile operator.

MTS initiated its international expansion in 2002 through the

establishment of Mobile Tele Systems LLC, a joint venture with Be
telecom, the national fixed line operator in Belarus.
In 2003, MTS continued to expand in the CIS by acquiring the leading
operator UMC in Ukraine, the biggest CIS market outside of Russia.

MTS entered Central Asia in 2004 through the acquisition of the

leading mobile phone operator in Uzbekistan, Uzdunrobita. In June 2005,
the Company acquired Barash Communications Technologies, Inc., the
number one operator in Turkmenistan.
 
In September 2007, MTS continued its international
expansion through the acquisition of the leading mobile operator in
Armenia, K-Telecom.
In December 2008, MTS extended its brand outside the CIS borders. MTS
and Shyam Telelink Limited, JSFC Sistema's telecommunications
subsidiary in India, announced the agreement to allow Shyam Telelink to
use MTS brand in India. The decision to introduce the brand to India is
reflective of the brand’s success in the Company’s markets of operation
since its launch in May 2006. In April 2008, MTS brand was recognized as
one of the BRANDZ™ Top 100 Most Powerful Brands, a ranking published
by the Financial Times and Mill ward Brown, a leading global market
research and consulting firm.

Today, Mobile TeleSystems is the largest mobile phone operator in Russia

and the CIS. MTS is a multinational corporation of a new type, based in a
high-growth emerging market and simultaneously entering other
developing markets with a unified brand. Having been recognized
internationally for corporate governance and transparency, MTS is not
only a leading Russian blue-chip company, but a truly global organization.

1993:

 MTS receives first license to provide mobile phone services using the
GSM standard.

1994:

27
 MTS begins offering mobile phone services in Moscow and the
surrounding region.

1997:

 MTS expands operations into Russian regions.

The 2000’s

2000:

 Initial Public Offering (IPO) of MTS securities on the New York Stock
Exchange (NYSE).

2002:

 MTS introduces pre-paid Jeans brand and begins expansion into

neighboring CIS countries through joint venture in Belarus.

2003:

 MTS acquires UMC, a leading mobile phone operator in Ukraine.

2004:

 MTS receives additional licenses in Russia to extend its license

coverage to include all but two regions of the country.
 MTS enters Uzbekistan through the acquisition of Uzdunrobita, the
country’s largest mobile phone operator.

2005:

 MTS enters Turkmenistan by acquiring Barash Communication

Technologies, Inc. (BCTI), the leading telecommunications operator in
the country.

2006:

 MTS appoints new CEO and CFO

 MTS launches new brand identity
 MTS adopts 3+1 Strategy
 MTS creates Group organizational structure

28
 2007:

 MTS launches 3+2 Strategy

 MTS enters Armenia through acquisition of leading operator, K-
Telekom (VivaCell)
 Allocation of 3G licenses in Russia, Uzbekistan and Armenia
 Countrywide rebranding of operations in Ukraine
 Launch of mobile broadband in Ukraine

2008:

 Mikhail Shamolin appointed as President & CEO

 MTS named as one of the World’s 100 Most Powerful Brands
 MTS launches 3G networks in Russia and Uzbekistan
 MTS signs strategic partnership with Vodafone

PRODUCT RANGE

MTS (MBLAZE)

CONNECTIVITY:

 Enhanced download & surfing speed with cutting-edge CDMA technology

29
  Internet browsing and download speed up to 3.1 mbps
 Compatible with Windows 2000, Windows XP & Vista, Window7.
 High-speed wireless data access for laptop or tablet PC.
 Simply plug and play

Item Description

Access mode CDMA

CDMA Protocol IS-95A/B, IS-98A, IS2000

(CDMA)
Data rate Up to 3.1mbps
Dimension 60mm × 25.3mm × 12mm
Language English
Weight About 20g
Display LED indication
Interface USB interface (USB 2.0)
Support operating systems Windows XP/2000, Vista 32 Bit OS

30
 EXTRA FEATURES

 Five website free for surfing (yahoo, Wikipedia, crick info,

make my trip, online shopping)

 59 live TV channels on your system at anywhere anytime.

 Useful as a 4 GB pen drive.

DIFFERENT PLANS OF MTS

The premium MBlaze data card is priced at Rs.2299 and the standard

MBlaze data card at Rs.1999, the only difference between the two being
the storage space provided in premium version (just like a USB stick).

The plans in MBlaze are, I have to say, comparable with the best in the
Industry now. Now when I say best in the Industry, I mean Tata Photon
plus which leads all the way. As always the EVDO speeds will be up to 3.1
mbps and the upload speeds will be up to 1.8 mbps.

31
The plans start from as low as Rs.198 per month, which gives 250MB.

MBlazer Rental Free Usage Validity (in Extra Usage

days) Charges#

Mblazer 198 198 250 MB 30 Re. 0.50/MB

Mblazer 248 248 350 MB 30 Re. 0.50/MB

Mblazer 498 498 750 MB 30 Re. 0.50/MB

Mblazer 598 598 1 GB 30 Re. 0.50/MB

Mblazer 698 698 2 GB 30 Re. 0.50/MB

Mblazer 595 10 GB Night 30 Re. 0.50/MB

night*

Mblazer999 999 UNLIMITED 30 _

32
COMPETITORS OF MTS

33
PROMOTION

34
Basically promotion is an attempt to influence. More specifically,
PROMOTION is the element in an organization’s marketing mix that serves
to inform, persuade and remind the market of a product and/or the
organization selling it, in hopes of influencing the recipient’s feeling
beliefs, or behavior. Out of 4P’s of marketing i.e. product, price, place, and
promotion, the most important role is of 4th P i.e. promotion.

ROLE OF PROMOTION IN MARKETING

 Promotions help marketers to communicate information to

potential customers. This information could be about the
product’s Existence (Awareness), value and benefits offered by
products.

 A well designed promotion mix extremely crucial for brand

building and positioning. In fact communication or promotional
mix is at the centre stage in brand positioning and Brand building
activities.

 The promotional mix or marketing communication helps

marketers to attract, persuade, urge and remind customers of the
company’s brand.

 Effective promotions prove helpful in product differentiation and

also help to counter competition.

COMPONANTS OF PROMOTION

There are five components of promotion: Advertising, Sale promotion,

Personal selling, direct marketing, and Public relations. Each has distinct
features that determine in what situation it will be most effective.

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 1. ADVERTISING

“It is any paid form of non-personal presentation and promotion of ideas,

goods, and services by an identified sponsor”. The most familiar forms of
advertisements are found in the broadcast (TV and RADIO) and print
(Newspaper and Magazines) media. However, there are many other
advertising alternatives, from direct mail to billboards and the telephone
directory to yellow pages. Advertising is often termed as pull strategy. In
pull strategy the goal is to pull the supply chain by demanding it.

MAJOR ADVERTISING DECISIONS:

While setting up an advertising plan, following decisions are required to

be taken.

 Identify the target audience

 Set the advertising objectives
 Determine the advertising budget
 Design the message
 Evaluate and select media
 Create an advertisement
 Measure the impact.

TYPES OF ADVERTISEMENT

MEDIUMS OF ADVERTISING:

 Newspapers
 Television
 Radio

36
  Magazines
 Direct mail
 Outdoor advertising.

2. SALES PROMOTIONS

Just as Advertising is known as ‘pull’ strategy, Sales Promotion is knows

‘Push’ strategy. This promotional technique can be defined as “short-time
incentive to the customer to buy a product”.

According to Philip kotler; “Sales Promotion consists of a diverse

collection of incentives tools, mostly short term designed to stimulate
quicker or grater purchase of a particular product or services by
consumers or the trade “.

The free gifts- offers, discounts, coupons, lucky draws, etc., are some of
the ways used in sales promotion.

SALES PROMOTION TOOLS

 Consumer promotion:

The consumer promotion directed at consumers. It includes Samples,

Price off, free gifts; Cash refund offers, premiums, prizes, warranties,
cross promotion, point of purchase. Consumer’s promotion is to create
consumer pool for the brand.

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The objective behind the several consumer promotion programs of
different organization is:

 To generate consumer interest, this should lead to trial.

 Increase the rate of purchase.

 Generate inquires from the target, consumer group etc.

 Trade Promotion:

The trade promotion directed to the members of distribution channel. It

includes advertising, Display Allowances. The prime objective is to push
the product through the marketing, intermediate and to get them to
market the product aggressively.

Other Objectives are:

 Encouraging trade to invest built inventory.

 Getting trade’s co-operation in production.

 Business and sales promotion:

It includes trades shows and conventions, contents for sales
promotion representatives and for special advertising. Although sales
promotion tools are highly divers but they all offer three distinctive
benefits.

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  Communication

 Incentive

 Invitation.

3. PERSONAL SELLING

The importance of personal selling is pretty evident as this is the only

marketing activity that directly results into Revenue earning as its
outcomes. The simplest definition of personal selling is- “selling that
involves face to face interaction between the sales person and prospective
customer.”

There are certain products, which need demonstration or explanation.

Personal selling is most effective in promoting such products.

Advantages of personal selling:

 There is a personal touch and with trained salesman, the

customer can feel important and gives full attention to the
product detailing.

 Demonstration of the product features and product working

helps in better product awareness and acceptance by
consumers.

 Consumer’s queries and apprehension can be effectively

answered.

 Follow-up action and persuasion are possible.

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 4. DIRECT MARKETING

The Direct Marketing association defines Direct Marketing as follows:

“Direct Marketing is an interactive marketing system that uses one or
more advertising media to effect a measurable response and or
transaction at any location”. This definition makes it clear that direct
marketing is directly from the company to the customer and there is no
intermediary (retailer, whole seller etc.) involved in between.

Various forms of direct marketing:

 Direct mail

 Telemarketing

 Email Marketing

 Couponing

 Direct response television marketing

 Direct selling

5. PUBLIC RELATIONS

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Public relations are defined as deserving, acquiring and retaining a
favorable reputation in the market place. Public relations function aims at
creating maintaining favorable public opinion about company’s product,
people, polices and plans.

Public relations are defined as “any group that has an actual or potential
interest or impact on company’s ability to achieve its objectives”. The
public relations do not directly help promoting the product but can make
product or policy acceptance by the public easy by generating image
about the company.

PUBLIC RELATIONS IS USEFUL IN

 Acceptance of a company’s as a specialist in a product group.

 Acceptance of company’s policies regarding its employees,
dealers, consumers etc.

 Attracting capital and man-power.

 Acceptances of new product and new brand.

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 RESEARCH METHODOLOGY

Phillip Kotler: - Defines marketing research as the systematic design,

collection of data, analysis and reporting of data and finding relevant to
specific marketing situation facing the company.

OBJECTIVES OF THE STUDY:

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  TO STUDY MTS BRAND IN PUNE MARKET.

 TO STUDY ABOUT THE AWARENESS OF MTS IN PROSPECT

CUSTOMERS.

 TO STUDY CUSTOMER EXPECTATIONS LEVEL FROM MTS WITH

OTHER COMPETETIVE BRANDS.

 TO FIND OUT TARGET MARKET WHICH GIVES MORE BUSSINESS.

 TO COMPARE THE BRAND ON THE BASIS OF PRODUCT, SERVICE,

PRICE AND NETWORK.

 TO SWOT FOR MTS HSDC.

METHODOLOGY OF THE STUDY

The analysis is based on collecting the data from survey among 60 peoples
through telephonic and personal meeting and by studying the data
provided by the organization.

1. Exploratory research

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 The objective of this research is together Preliminary data that
helps to define the problem &suggest hypothesis.

2. Descriptive research

The objective of this research is to describe things such as

market potential for a product or demographic& attitude of customer
who buy the product.

3. Casual research

The objective of this research is to test Hypothesis about cause and

effect relationship.

I had started the project with exploratory and later on followed with
descriptive research. Developing the research plan-The second step of the
marketing research process calls for determining the information needed
gather secondary information: secondary information consist of
information that already existing. Primary data collection: It is done
through contact method, mails, and telephone, personal online. Research
approach- I have adopted the survey research method for my project.

Survey research is method suited for gathering descriptive

information it is use to know attitude and buying behavior of people. The
main advantage of survey it is quick and flexible. In my survey I gather
information by personal interview. Sample selection- there are two kinds
of survey namely

A. census survey

44
 B. Sample survey

A census survey is a complete enumeration of all items in a

given Population but this method is beyond the reach of ordinary
researcher as it involves time, money and energy.

Sample survey is selective enumeration of only A few items out from

the total population greater emphasis is placed on the fact the respondent
should be reprehensive of total population as much as possible.

Research can be called as a purposive investigation. The objectives

of the research could be gaining familiarity with research objectives
(exploratory research), to describe the characteristics of a market or many
markets as well as of consumers, to decide the frequency with which some
phenomenon (say stock-out situation for essential goods distributed as
ration-card), to test hypothesis, etc. The significance importance of the
research can be understood from the fact that it provides the basis for all
policies and strategies may be for any marketer or even to government.
There are many types of research like descriptive, analytical, applied,
basic, quantitative and qualitative, etc.

The analysis is based on collecting the data from survey among 100
peoples through personal meeting and by studying the data provided by
the organization.

SOURCES OF DATA COLLECTION:

The data and information collected for the purpose of the study is divided
into two forms.

45
 1) . Primary data:

Primary data is first hand information collected by researcher for

getting the primary information. So that researcher gets relevant
information. The question was asked in the retailer’s schedule which
covers all the aspects pertaining to the project. The question gave details
about the brand, price of the product & services, effectiveness of the
advertisement, sale of the product & services and finally the opinion of
retailer to enhance the sale of product & services. Similarly in the schedule
for the customer and non customer the questions was asked cover many
aspects about consumer preferences, brand image, price of the product,
availability of product and advertise effectiveness.

2). Secondary data:

The secondary data was collected through the internal and external
sources. The internal included companies’ broachers various journals. The
external sources consist of peripherals, books and journals, newspapers,
magazines and websites of the advertisement etc.

Sampling method:
The total sample size taken for the project was more than 60 peoples in
pune. Survey method used:-

 Direct interaction.

46
VALIDITY AND RELIABILITY:

The validity of the information collected by secondary research differs

from one research objective to another. For data related to staff
motivation ranges from 10-20 years as mot of the books referred are
written by famous authors, and their theories are followed from year to
year.

Recent published books are also referred as these books provide

information about the advancements in motivation. While consumer
behavior came in trend in last few years so most of the books are new and
most of the theories related are also new. Therefore, validity changes from
one research objective to another in secondary research.

RESEARCH DESIGN

The most important function in attaining the above mentioned

objectives were to collect the information from the respondent. The
purpose to know the customer attitude towards MTS. The data collected in
the survey was given information in respect of PRODUCT, PRICE, PLACE,
PROMOTION, etc. All these points were taken into consideration at the

47
time interaction with customer; so that it is complete, relevant, unbiased
and straightforward to get necessary relevant information.

CONCEPTUAL BACKGROUND:

The concept of marketing is sensational any concept of customer

ordination for a long time it has been preached by all including mahatma
Gandhi, that the customer, customer is the king, what this implies is that
products or services are brought not merely because of their quality,
packing or brand names but because of they satisfy a specific need of a
customer. It also implies that organization have to provide services to
their customers & that to without any obligation.

In other words marketing means understanding & responding to

customer needs a prerequisite for any organization success. & this can not
be ignored by any organization in today’s competitive environment.

Philip Kotler:
“Marketing is a social & managerial process by which individuals & groups
obtain what they need want through creating offering & exchanging
products of value with others.”

American Marketing Association:

48
“Marketing is the process of planning & exciting the conception, pricing,
promotion & Distribution of goods, services & ideas to create exchanges
with target groups that satisfy customer & organizational objective.”

49
 SWOT ANALYSIS OF THE PRODUCT

Strengths:

 As a 9th operator MTS start with Data not voice as a main core
strategy of company to work more efficiently in data not in voice
because in INDIA voice is on BOOM but still there is need of some
spark in broadband or data. And this is the better way which to
enter into market today in India customer know MTS by its DATA
card services.

 MTS is World`s 8th largest mobile Brand.

 Much lower tariffs’, hardware cost and offers in postpaid and

prepaid make MTS more STRONGER brand in comparison with
reliance and Tata.

 Technology used by MTS is CDMA

(Code Division multiple access) which is already having an edge over
the GSM.

Weakness :
 MTS is 9TH Operator so the network coverage is not too much good.

 CDMA is a excellent Technology no doubt but it is too much costly.

Opportunities:
 In INDIA the market for data is still not tapped so there is a huge
market for DATA in India.

 MTS can learn many things which was incorrect by the last 8 th service
Providers.

Threats:
 Tata Photon, Reliance Are Much Stronger Brand and Having
Good Market Image In India And Their Present Customer
Base Is More Than 5 Crores.

FINDING:

50
 1. The tariff offered by MTS is much cheaper than the
competitors.

2. The promotional offers are also better than competitors.

3. The network is not too much strong as compared.

4. Where the network exist the speed which customer

experience is better than others.

5. Pune is the hub of IT professionals and student having a

huge market segment.

6. The Locations like PCMC , HADAPSAR, HINJEWADI

,BANNER, MAGARPATTA, PETH AREA, VIMAN NAGAR. Are
all covered strongly.

7. The sales team is not working aggressively in sales.

8. Marketing activities is not their for creating awareness

about the brand.

9. There is no corporate plans as such date .

SUGGESTIONS:

1. Required more aggressive saleing.

2. Required few promotional activities for create awareness in

prospects.

51
 3. Required few corporate plans to close the customer on the spot.

4. The areas like where IT ,Students, Engineering companies are more

network should be strong

5. Tariffs suggested to add:-

For prepaid:-799 Rs. unlimited plan for 30 days.

449 Rs. Unlimited Plan for Night for 30 days.
For corporate:

499 rs and get 5 Gb Usage every month and 40p/mb extra usage.
749 Rs. and get 10 Gb usage every Month and 40p/mb extra usage.
(both plans are given with a locking period of 12 or 18 months)

Strategy Suggested:

Taped the colleges and Institutes and distance education institutes.

Pune is the education Hub and in Pune there are more than 100000
students are coming every year. And they required Internet with High
speed.

This institute provides Laptops to Students and with that they can also
give an add-on feature to their student.

In addition to that the distance education institutes they can also give to
their student because their assignments their tests everything is online
like lectures also.

52
For collection of data I have used questionnaire methods. I have
interviewed 100 people. Depending on the response given by the normal
public, interpretation has been made.

1).Which type of computer system do you use?

a) P.C.

53
 b) Laptop

Respondents Percentage
Particulars
P.C. 45 45%

Laptop 55 55%

P.C.
45%

Laptop
55%

INTERPRETATION:

 From above graph, about 55% people use laptop. As laptop is one
of the newly invented computer system most of the user prefer
laptop to computer system.

 45% people use P.C.

2). Do you have internet connection?

o Yes

b) No

Respondents Percentage

54
Particulars
Yes 73 73%

No 27 27%

Yes No
27%

73%

INTERPRETATION:
From the above graph,
 It is clear that about 73% people response is yes and remaining
27% said that they don’t use internet connection.
 27% people denies the use of internet connection.

3).Which type of internet connection you use?

a) Broadband

b) LAN

Response Percentage
Particulars

55
Broadband 64 64%

LAN 36 36%

LAN
36%

Broadband
64%

INTERPRETATION

Out of 73% people who are using internet connection,

 almost 36% people uses the LAN network.

 64% people uses Broadband connection.

4). what do you expect from your internet service provider?

(a) High speed

(b) Good connectivity

Particulars Respondent Percentage

High speed 68 68%
Good connectivity 32 32%

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 HIGH SPEED GOOD CONNECTIVITY

32%

68%

INTERPRETATION:

 Almost 68% people expect high speed from their internet

connection.

 32% people think that good connectivity is also one of the

important expectation.

5).Which company net connection do you use of?

(a) Tata Indicom

(b) MTS

(c) Reliance

(d) Other

Particulars Respondent Percentage

Tata Indicom 23 23%
MTS 17 17%
Reliance 46 46%
Other 14 14%

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 Tata Indicom MTS Reliance other
14% 23%

17%

46%

INTERPRETATION:

From above survey it can be said that,

 Most of the consumer about 46% people uses Reliance’s net
connection. Reliance is most preferred internet connection.
 17% people prefer the net connection of MTS.
 23% people use the net connection of Tata Indicom.

6). How you came to know about this product?

a) From Friends

b) From salesman

c) From media

Particulars Respondent Percentage

From Friends 23 23%

media friends
From salesman
28% 49 23% 49%

From media 28 28%

salesman
49%
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INTERPRETATION:

 Maximum people i.e. 49% are influenced by the salesman. It means

that the salesman are doing the great job.
 28% people are influenced by media.
 23% people are influenced by friends.

7). How long have you been using this internet connection?

o Less than 1 year

o 1 year

c) 1-5 year

Respondent Percentage
Particulars
Less than 1 year 43 43%

1 year 37 37%

1-5 year 20 20%

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50
45
40
35
30
25
20
15
10
5
0
reliance MTS Tata Indicom

INTERPRETATION:

 Maximum people about 43% are using net connection from less 1
year.
 There are very less people i.e. about 20% people are using net
connection from 1-5 year.
 37% people are using net connection from 1 year.

8).What kind of complaint do you have against your internet

service Provider?

(a) Billing problem

(b) Weak connectivity

(c) Low speed

(d) others

Particulars Response Percentage

Billing problem 15 15%
Weak connectivity 34 34%
Low speed 48 48%
others 3 3%

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 Billing problem Weak connectivity
Low speed others
3% 15%

48%

34%

INTERPRETATION:

 For 48% people low speed of net connection is the major complaint.
 Weak connectivity is also one of the complaint for 34% people.
 15% people face the problem of billing.

9).What do you feel about your modem?

1. Innovative Product
2. Very useful Product
3. Something that you can flaunt(Show off)
4. Your one stop Internet solution

Respondent Percentage
Particulars
Innovative Product 16 16%

Very useful Product 30 30%

Something that you can 19 19%

flaunt(Show off)

Your one stop Internet 33 33%

solution

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 Innovative Product

Your one stop Internet 15%

solution
31%

Very useful Product

36%

Something that you can

flaunt(Show off)
18%

INTERPRETATION:

 Most of the people about 36% people think that modem is one of
the useful product.
 From the point of view of 31% people modem is the internet
solution.

10).What is your average monthly internet usage?

(a) Less than 2 GB

(b) 2 to 5 GB

(c) 5 to 10 GB

(d) More than 10 GB

Particular Respondents Percentage

Less than 2 GB 12 12%

2 to 5 GB 33 33%

5 to 10 GB 12 12%

More than 10 GB 53 53%

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 50
45
40
35
30
25
20
15
10
5
0
reliance MTS Tata Indicom BSNL
INTERPRETATION:

 48% people’s monthly usage of internet connection is more than 10

GB for downloading purpose.
 30% people use internet connection in the range of 2 to 5 GB.

11). How much monthly charge can you spend on internet?

a) 100 to 200 Rs.

b) 200 to 500 Rs.

c) 500 to 1000 Rs.

d) More than 1000 Rs.

Particulars Respondents Percentage

100 to 200 Rs. 18 18%

200 to 500 Rs. 18 18%

500 to 1000 Rs. 54 54%

More than 1000 Rs. 10 10%

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 18%
Tata Indicom
12%

reliance
22%

MTS
47%

INTERPRETATION:

 Most of the people about 54% expanse is in the range of 500 to

1000 Rs. It means monthly expenditure on internet is more for
students & official usage.

12).According to you which company provides cheapest

service?

a) Reliance
b) MTS
c) Tata Photon
d) BSNL

Particulars Respondents Percentage

Reliance 22 22%

MTS 46 46%

Tata Photon 12 12%

BSNL 20 20%

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 BSNL
20% reliance
22%

Tata Indicom
12%

MTS
46%

INTERPRETATION:

 According to maximum customer i. e 46%, MTS is the cheapest

internet connection. Because the unlimited plan of MTS is chip as
compared to others.
 22% people use Reliance internet connection.
 20% customer use net connection of BSNL.

13).Which internet connection would you like?

a) Prepaid

b) Postpaid

Particular Respondent Percentage

Prepaid 61 61%

Postpaid 29 39%

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 Postpaid
39%

Prepaid
61%

INTERPRETATION:

From above survey,

 It can be said that almost double i.e. 61% people prefer prepaid
connection. Because in the prepaid plans there is a facility to pay in
advance and as the payment the customer can use the internet
facility.
 39% people use postpaid connection.

14).What is your main purpose of using net connector?

o Official use

b) Entertainment

c) Others

Response

Official use 32%

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 Entertainment 46%

Others 22%

Others
22% Official use
32%

Entertainment
46%

INTERPRETATION:

 Most of the people i.e. 46% people use internet for entertainment
purpose.
 Official usage of internet connection is done by the 32% people.

15). Are you satisfied with your recent modem?

a) Yes

b) No

Particulars Respondent Percentage

Yes 43 43%

No 57 57%

67
 yes
43%

no
57%

INTERPRETATION:

 Maximum i.e. 57% people are not satisfied with recent modem.
They want to change their modem.
 43% people are satisfied with the current modem.

16).What is the level of your satisfaction from your modem?

a) Satisfied

b) Highly Satisfied

c) Not Satisfied

Particulars Respondents Percentage

Satisfied 43 43%

Highly Satisfied 19 19%

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Not Satisfied 28 38%

MTS Postpaid
32% 27%

Prepaid
42%

INTERPRETATION:

Most of the people which we observed,

 43% people are satisfied with their current modem.
 But, the percentage of not satisfied people is also great i.e. 38%.

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70
 BIBLIOGRAPHY

Books referred:

Marketing Research – C.R.KOTHARI

Marketing Management – Philip Kotler

Internet Links:

www.google.com (search engine)

Wikipedia

www.mtsindia.com

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