A Case Study on Uninor - Leading Brand and Cost Effective Player


By

Ms. Sneha Dave
Lecturer
Ms. Sejal Acharya
Lecturer
MBA Dept, LDRP-ITR
Sector-15, Gandhinagar
Mr. Girish Raval
Acct.Officer
Adani Power Limited
 


Today, the mobile has become one of the basic necessity and everyone wants the best quality mobile with best connectivity  at lowest prices. The mobile is having GSM and CDMA  technology available. The AT & T and Nokia was the first one to launch mobile. In terms of handset providers, Nokia, Samsung,  Vodafone, Apple, Blackberry, Motorola, Videocon, Tata, LG, china mobile , Spice, Maxx,Sony Erickson, karbon  etc are the players. Same way if we talk about the sim card players there is BSNL, VODAFONE, AIRTEL , IDEA, MTS, UNINOR, TATA DOCOMO, MTNL, RELIANCE, AIRCEL ETC ARE THE PLAYERS. Tata and Reliance are the players in GSM and CDMA.

The Indian mobile handset market is expected to continue its upward trajectory if a recent report by Frost and Sullivan is to be believed. The report continues to portray the happy sentiments in the mobile industry in the country.

India has reached the coveted position of the second largest mobile handset market in the world after China. And it is expected to become even bigger with 208.4 million phones being shipped by 2016 at a CAGR of 11.4% between the period of 2010 2016.

UNINOR was the last in joining the sim card markets. But the strategy followed by them is good. They slowly and gradually covered the market of the country. They have started operating in Delhi in October 20098 and within time span of four years they have thirty five million subscribers. They are operating in 13 circles.

Literature  Review

"The Indian telecom sector, seen as providing the most affordable services in the world, has grown by leaps and bounds in the last decade. This remarkable journey to 100 million consumers is a testament to the vision and commitment of a company that benchmarks itself with the best in the world,'' Sunil Bharti Mittal, chairman and group chief executive officer of Bharti Enterprises said. (Times of India May 2009).

Richard Lee, Jamie Murphy, University of Western Australia (2005), their study investigates determinants that cause mobile phone Customers to transit from being loyal to switching. It concluded that there are different factors which affect the Customers to switch from loyalty to switching intentions such as price, technical service quality, Functional service quality, switching costs, etc. But, the rating was given that price is the most important factor which affects the Customers to switch loyalties to another provider.

Mohammed Sohel Islam (2008), in his study examined the relationship between switching cost, corporate image, trust and Customer loyalty. The research finds that although all the independent variables, switching cost, corporate image, and trust have certain degree of relationship with the dependent variable, Customer loyalty, only trust has the strongest relationship with Customer loyalty.

Conor Twomey (2008), Department of Statistics, University College Cork, Ireland, they try to identify hysteresis in the switching patterns of Customers in the Irish mobile phone industry. It was not until the introduction by the Communication Regulator of full-number portability that Customers began to take advantage of the savings that switching mobile phone operator could produce. Through the use of experimental economics and by modelling switching behaviour using the Preisach model, along with observed and market data suggests that the average Customer is misguided and misinformed in his/her decision to switch to bill pay. More realistically though, one can attribute this unexpected result to the enhanced services and mobile phone subsidies that a Customer receives as a bill-pay Customer.

Mitja Pirc, Universitat Pompeu Fabra(2006), Spain, the Mobile telecommunications service sector, in spite of providing high service quality and striving for Customer satisfaction, is characterized by dynamic Customer activities and provider switching. By using the consumption system perspective on mobile services and mobile phone, he provides the explanation on the factors of Customer switching. It is found that the mobile services usage effect on switching intentions is curvilinear (positive linear and negative quadratic) and that only the budgetary constraint regarding the service matters and not the one related to the mobile phone. Past mobile service providers switching experience also contributes to the intention to switch.

Mobile phone ego involvement has positive impact on Customer retention; however purchase involvement (both mobile phone and mobile services) increases Customer risk.

Oyeniyi, Omotayo* and Abiodun Abolaji Joachim (2008), He attempts to find the relationship between Customer services on Customer retention in telecommunication industry in Nigeria. If retention is not managed, Customers loyalty may be lost. He examines the potential constructs in Customer retention by investigating the chain of effects of retention from Customer service, satisfaction, value and behavioural intention. The hypotheses are supported except that a higher level of Customer satisfaction does not lead to Customer loyalty. Customer satisfaction does not necessarily lead to Customers loyalty. It is assumed that when the Customer is satisfied, then loyalty towards the telecom company is strengthened. Their results, further show that the respondents in their study have a positive impression towards their telecom companys ability to meet their changing needs.

Juan Pablo Maicas Lopez, Yolanda Polo Redondo and Fco, Javier Sese Olivan ,University of Zaragoza, Zaragoza, Spain,(2006) their research shows how relationship marketing has recognized the importance of building long-term relationships in increasing firms profitability and guaranteeing their future viability. The results obtained show that the length, depth and breadth of relationships help to determine Customers propensity to switch fixed-telephone suppliers. Customers who maintain a long-lasting relationship with the firm (length), use the service more (depth), and invest in complementary services (breadth) will be less predisposed to switch. They conclude that Service usage reduces the probability of switching and strengthens the relationship between the parties, encouraging them to seek a long-term orientation.

THE SUCCESS OF UNINOR

UNINOR, as being the last player in the handset provider has been successful due to two reasons. One is launching in the month of diwali and second is attractive offers and more timings for the recharge. The company has given various talk  timings for recharge. The per minute call rate is one rupees for local call and sms, Rs. 1.5 for STD and national SMS, Rs. 5 for national SMS. In case of roaming charge Rs. 0.60 for incoming and Rs.0.80 per minute for outgoing charges. The other has higher charges are found in terms of roaming and SMS specially when it is  having pre paid connection.

The success has also come because the company has gone for the distribution channel which has focused masses and lower income group, youth, teen age persons.

Category

Re- charge

Preference

Teenagers

Easy and cheap

SMS, MMS, Internet, Talk time

Youth

Easy

SMS , talk time

Engaged

Easy

Talk time and sms

Lower income group/ below poverty line people

Easy and simple

Talk time

Middle age people

Easy

Talk time, sometimes sms

Old age people

Easy

Talk time

Disabled people

Easy

Sms, mms


The company has covered almost each of the category and captured more than  25-30% of the pre-paid markets. Within the time span of four years, it is good for a company to reach to the thirteen circles and having 35.6 milllion customers. The another reason is hitting the youth and rural markets which is having 25-30% share in the overall  population of India.

Conclusion

A company when starts focusing on the rural markets, the chances of success is increased. The youth who regularly uses the internet and mobile having more awareness make their choice easy and convenient. The teenagers and collegians are having the limited amount of pocket money and they are having higher mms and sms to do. So, they prefer the company like uninor. Nowadays, people are doing transferable jobs, so they in order to get connected, prefers the company having lower roaming charges. The regular internet users prefers because it carries good speed. The effectiveness  in terms of cost, wide spreading and lower tariff rates made uninor successful and putting present in masses.
 


Ms. Sneha Dave
Lecturer
Ms. Sejal Acharya
Lecturer
MBA Dept, LDRP-ITR
Sector-15, Gandhinagar
Mr. Girish Raval
Acct.Officer
Adani Power Limited
 

Source: E-mail April 30, 2012

          

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