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REPORT ON

Marketing StrategyFor

Value Added Service

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CONTENTS

1. Introduction 03

2. What is VAS?.........................................04

3. Market.05

4. Segmentation...06

5. Positioning...12

6. Market Penetration...13

7. Top five enterprise users..15

8. SWOT Analysis16

9. Strategy Development...1810.Unique Selling Proposition.20

11.Some Additional Features...21

12.Conclusion...22

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INTRODUCTION

Mobile phones today have moved beyond their fundamental role of

communications and have graduated to become an extension of the persona of

the user. We are witnessing an era when users buy mobile phones not just to be

in touch, but to express themselves, their attitude, feelings& interests

Customers continuously want more from their phone. They use their cellular

phones to play games, read news headlines, surf the Internet, keep a tab on

astrology, and listen to music, make others listen to their music, or check their

bank balance. Thus, there exists a vast world beyond voice that needs to be

explored and tapped and the entire cellular industry is heading towards it to

provide innovative options to their customers. Spoilt by choice, the mobile

phone subscribers are beginning to choose their operators on the basis of the

value added services they offer. The increased importance of VAS has also

made content developers burn the midnight oil to come up with better and

newer concepts and services. To understand where this industry is at present

and where it is heading, we are preparing this report. This report is prepared

from the point of view of a new VAS launching in the states of Orissa, Bihar and

West Bengal (Except Kolkata).

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WHAT IS VAS (VALUE-ADDED SERVICES)

Mobile value-added services (VAS) are those services that are not

part of the basic voice offer and are availed off separately by the end user. They

are

used as a tool for differentiation & allow the mobile operators to develop

another stream of revenue. Through mobile value-added services various

schemes are provided to different type of customers. Starting from ring-tone,

caller tune downloads; matrimonial services, job searching, astrology reports,

cricket scores, and GPS technology are catered through this service. This

service is also playing a vital role of media for third parties for launching,

promoting and advertising their products. This service has also become useful

for continuous and quick interaction with the users through various customer

pollings. And the end of all this service has removed the obstruction of distance,

cost, and time factor for the customers to access any product.

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TARGET MARKET

The new VAS will be launched in the states of Orissa, Bihar and West Bengal(Except Kolkata).

ORISSA

This state is one of the growing states in the eastern region as far

as mobile users are concern. Basically mixer of class and communities are

found in this state. On an average most of the users belongs to middle class.

Due to improvement in educational structure nowadays a huge amount of

people, especially students are concentrating in this part of India, so good

amount of customer base is forming here.

BIHAR

In the past few years this state has moved ahead In comparison with other

states with a growth of almost 88% in the year 2007-2008 in case of mobile

users. Like Orissa Bihar is also similar in nature in case of communities and

class. Formation of various industries and businesses are creating new users.The total number of mobile phones in Bihar increased from 57, 73,370 in 2006-

07 to 108, 69,459 in 2007-08.

WEST BENGAL (EXCEPT KOLKATA)

A microscopic view of west Bengal excluding Kolkata produced an interesting

result in case of mobile users. Availability of some big industries leaded people

to settle down here from various part of nation. West Bengal without Kolkata

most of the users belongs to middle class. But elimination of metro city hasntmade a big difference in the mobile user market As far as growth is concern it is

giving a neck to neck competition to state like Bihar with a growing rate of

almost 86% it has also moved ahead if this part is compared with only Kolkata.

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SEGMENTATION

BASE OF SEGMENTATION:

Product Basis And Geographical Segmentation

Primary Package: - Here in this package we have divided the market

according to usage of customer. Primary package is the main service provided

to the customer. Through this the actual customer base is formed.

Add-on package: - This type of package is the sub-package of primary

package later on these packages are added with some extra values. After

adding new features some new customer can be added. Add-on packages are

also useful for segmentation because issuing of its special features easily target

customer can be traced.

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Orissa West Bengal (Except Bihar

Market

Segmentation

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1) Unaware Mass: Through advertisements in electronic media and other

media channels, we will have to educate the unaware mass about the

benefits of our Value Added Services.

2) Aware:

a) NOT TRIED :

i) Negative Opinion

ii) Neutral

iii) Favourable Opinion

We will have to take steps for educating them about the service and

making them realize that Value Added Service is a necessity of todays

modern life.

b) TRIED :

Rejecter

Not yet repeated

We will try to make them potential customer by knowing what kind ofservices they prefer. Then immediately launching that service and

informing them about the service.

Repeated:

o Loyal to other brands

o Switchers

o Brand Loyal

We will try to attract them towards the service through some interesting

offers. After they use the service once, we will make efforts to keep them

using the service. For brand loyal customers of other brands we can offer

them the service at a discounted rate. This will make them use our

service and they will feel the better quality of our service.

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Light Users : We will have to try and transform them to regular

users. For this we will have to see which services the customer is

using. Then we will have to offer him the services he is

interested in on a regular basis, but on a differentiated form.

Regular Users : We will have to try and transform these customers

to heavy users. By offering them more and more interesting

services and products, we will have to do that.

Heavy Users: We will have to try and retain the customers.

These customers are the revenue generators and so should be

retained. They should be offered the services with discounts andothers offer.

Other Segments:

Demographically Segmented Target Market:

A. Age Group: I) 18 to 35

II) 36 to 50

III) 50 to 60

IV) 60 and above

In the above segmentation, the age group of 18 to 35 is the young

generation who have started earning, who are getting married, and

who have the dreams in their eyes. We have to utilize all the

characteristics of this group and offer them such services which will

attract them. For example, we will have to offer hem services like

downloading ringtones, music, other entertainment products,

matrimonial services, job search, etc.

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Age group of 36 to 50 has many responsibilities in their shoulders.

They are very choosy in whatever they buy. So we will have to offer

them such products which will make them feel that they are getting

the full value for their money spent. For example information about

share market, different kinds of news, easy recharge facility, utility

services, etc.

Age group of 50 to 60 is a group who feel that their retirement is

knocking at the door. They feel that they have worked whole life.

They want the products and services at a much cheaper rate, i.e.

the rate they used to get in their younger days. They also become

very religious at this age. So we will have to offer products like

online radio, information about the market, religious and old days

music and ringtones, etc., and that also at a cheaper rate.

Age group of 60 and above, the people who have retired and now

they want to spend time with their family in peace. For them we will

have products which will be helpful for their family also. Products

like Voice SMS dialing, Operator services, religious music, news, etc

can be offered to them.

B. Gender: Segmenting the market on the basis of gender is another

step towards capturing the market. The male customers have

different demands and females have different demands. For

example a male customer will be interested in a Cricket matchs

updated score while a lady customer may be interested in getting

various cooking recipes. Therefore, we will have to see that the

right service is offered to the right customer.

C. Income: Here we will have to consider the Credit ratings the

customer is having with his telecom service provider. While

determining Credit ratings, various factors like income of the

customer, ability to pay the bills on time, usage of various telecom

services, etc. are taken into account. We will have to plan our

offerings to customers of different credit ratings, differently. For

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example, if a customer is using internet through his landline phone

and he is also having a mobile, we can offer him internet on his

mobile phone itself.

D. Occupation: Customer can be a businessman or an employee. To a

businessman we can offer him Share market information, local

market prices of commodities he is dealing with, etc. For example,

to a farmer, we can offer him the service of informing him the

market rate of vegetables. For an employee, we can inform him

about the traffic, the political movements, the news, etc.

E. Society: While delivering the services, we have to keep in mind the

society the customer belongs to. Otherwise, it may also lead the

customer to have a different perception about the company. For

example, a Muslim customer should not be always offered only

Hindu religious things. So we will have o take care of this segment

also.

Psychographic Segmentation

This can mainly be divided into three parts namely Activity, Interest and

Opinion. Accordingly the following revives should be offered to them.

Activity Interest Opinions

Work Home Social Issues

Hobbies Job Politics

Clubs Community Education

Sports Food Culture

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Shopping Media

POSITIONING

CUTTING BARRIERS: - There will be no communication barriers between the

customer and the company. The customer can contact the company directly

which will make the service more fast, direct and simple.

EASY USE: - One of the key features of positioning this type of services is for

any kind of customer from any segment the service can be easily accessed. For

example, NOKIA mobile can be easily handled by any laymen.

ONE CLICK ACCESS: - One of the special attribute of this service is one click

access of any application. So very quickly customer can reach to its desire

program.

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ANY TIME ACCESS: - Any information at any point of time is available for

customers. So here time and distance obstruction is reduced by the service

itself.

LOWER COST: - Customers from various segments can enjoy the facility served

to them within a lower cost which will fit their budget.

WORLD OF SERVICES:- In this process a world of services can be accessed by

the users, starting from playing games in the mobile, listening to music and

setting music for others as caller tune, Watching news and movies, job

searching, matrimonial services, astrology, recharge services, e-banking etc.leaves a good impression in the mind of customer.

MARKET PENETRATION

EXISTING MARKET -EXISTING PRODUCT: - Here the sms service market

exists in India for a long period of time and this type of services are also

available in the market too. So the availability of good amount of competitors

should be taken into consideration. For market penetration the following

procedures are to be adopted.

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A. MARKET CAPTURING: - The Company should focus in capturing the

market by increasing the amount of share it is holding. The necessity of

doing so is to avoid the possible threats of losing customers to its

competitors.

The Company will offer public issue of its shares in the market at a veryless rate. The rate of dividend will be high. In this way, share capital is

received and the companys goodwill in the market will increase.

B. PROPER LAUNCH OF PRODUCT:-The product should be launched

efficiently and successfully by this process a high goodwill value will be

scattered through its users and at the end of the day it helps the

company to move few steps ahead of its competitors.

The company will launch its products in the market with various offers

and free sample service for a short period of time. This will help in a

strong product launch in the market.

C. DOMINANCE:-The Company should always concentrate in gettingdominance in the growth market. In this process a huge amount of scope

of the competitor to place its product can be eliminated.

A good and strong rapport building with the suppliers, i.e. the service

providers of astrology, matrimonial, etc. will help in achieving dominance

in the market. The rapport will be so good that the suppliers will not like

to provide their service to any other company.

Continuous innovation is another key factor in achieving dominance in the

market.

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D. RESTRUCTURE : - Restructure of market is always important. Developing

new ideas to compete with others and small changes is always required.

By this process a company can only drive out its competitors.

It is possible with the increase of the product range. Advertisement is

another way by which the market can be restructured.

OUR TOP FIVE ENTERPRISE USERS:-

REAL ESTATE INFORMATION:-This service is very useful for getting any kind

of real estate information. Nowadays real estate industries are becoming very much

depended on this type of services the reason for this is very simple, suppose a real

estate company is planning to buy certain plots in a particular area within a very short

period of time only through sms and internet services they can get information related

the price of the land, availability of land, size of the land, owners information etc. And

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this process is also applied by the customers to getting any such information about

real estate industry.

FMCG CONTEST: - Nowadays sms service has also become an important media for

FMCG industry. Various contests are organized through sms services regardingFMCG products by getting customer polls.

CARGO AND COURIER TRACKING: - In case of Logistics Industry tracking

system is maintained through internet and sms. This process is very useful for various

level of management to get constant status from their agents about the operation.

EDUCATION AND CAREER INFORMATION: - We all know that here in India

education industry is growing rapidly every now and then a new course is innovated

and offered to eligible students. Internet and sms services are playing the proper role

of being a linker between the students and institutes.

TRAVEL SERVICES AND E-SPACE: - In the Indian economy role of tourism

industry cannot be ignored. Internet and sms services are just placing an appropriate

platform for them to maintain its huge customer data base by interacting, offering,

promoting, Advertising, and launching various packages.

We will emphasizes two way communication between these enterprises and our

customers.

SWOT ANALYSIS: COMPETITORS

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STRENGTHS

1. Large customer base

2. Large Capital

3. Larger Market share

4. Large & loyal resources

5. Versatility of features

6. Good customer relation

WEAKNESSES

1. Responding time is more

than required.

2. Technology used for the

services are a bit back

dated.

3. Less direct advertisements

OPPURTUNITIES

1. Capitalizing on websites

2. Capturing Global Market

3. Self Internet Browsers and

cell phones

4. Increasing growth rate of

telecom industry

THREATS

1. Perfectly Competitive

market which means new

competitor is free to enter

the market.

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SWOT ANALYSIS: COMPANY

STRENGTHS:-

1) Mobility.

2) Cost effective.

3) Mass appeal.

4) Less time consuming.

5) Widely and uniformly distributed.

6) One click access.

7) More advertisement

WEAKNESSES :-

1) Less Capital

2) Less resources

3) Usage of local language can

sometimes be problem for migrated

mass.

4) Less Customer base

OPPURTUNITIES :-

1) Each service is interlinked, so

scope of new services.

2) Consumer behavior of existing

services can be easily channelizedfor future use.

3) Provide good employment service

graduated and educated mass.

THREATS:-

1) Huge competition.

2) Unwanted and the frequency of

single offering can be irritating.

STRATEGY DEVELOPMENT

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EVALUATION OF ALTERNATIVES:-At first developing any strategy we have to

evaluate the all the alternatives to choose the best possible alternatives.

LOW PRICE : - When the service is in its introduction stage a low and attractive

price will help the company to reach its users. The Vas service rates are already low inthe market. But we will make them cheaper. For example, the P2A SMS costs Rs.3

per SMS for other operators. We will give them the service at Rs.2 per SMS. Once

they start sending the SMS, there we will be sending a series of interesting SMSs by

which the customer would be bound to read that and reply. Thus the revenue will

increase and the customer will also be satisfied. This has to be properly informed to

the customers. Low prices will be a kind of attacking our competitors in the market

from the front.

FREE SAMPLE: - Free samples and various attractive offers will give the customeran opportunity to test the product without paying for it. For example, we will offer the

customers to use our ringtone/singtone download service absolutely free of cost

tapped up to 5 tones. Thus, the customers will get a glimpse of our service and will be

bound to use it because of its several other features that we will inform him. Since

ringtone download is the most popular VAS, so we will attack our competitors

directly from the front.

ADVERTISEMENT MEDIA: - Choosing a proper advertisement media is very

important. This type of services can be launched through electronic and printing

media. Today electronic media is the most popular media. One can very easily place

him in the market through a good advertisement. Another way of advertisement can

be a tie up with a DTH TV service. This will be a big advertisement and will also help

increase the revenue. Tie up with a newspaper, may be a local daily, will also work as

a big advertisement. This will be our time to time pricks on the competitors arsenal

which will be our initial phase of Guerilla attack.

INTERACTION:-Customer taste should be frequently examined by this process so

that any deviation can be traced and rectified. In India, maximum portion of the

population is distributed in the rural region which is an unguarded market segment of

our competitor. We will attack this segment by informal way of communication

through our operator service with our target customers.

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REWARD:-In this process any loyal customer will be rewarded through organizing

various contests and games. Certain features will be automatically added with the

services provided to our loyal customers. Example if some customers is accessing our

web services heavily for 6 months, automatically free night access of internet will be

upgraded with his or her service.

SPECIAL SEGMENT:-Tracing a special segment of customer is always important.

Here in this type of services maximum users belongs to youth group. So according to

the need of this segment offer should be designed and served. For example chatting,

romantic messages, adventure trips, sports and entertainment related services will be

available for them.

UNIQUE SELLING PROPOSITION

1. The Orissa, Bihar and West Bengal have such markets whose

literacy rate is moderate. Our alternatives of customers can be

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literate as well as illiterate. Literate customers can easily access

the services we are about to provide to them. But the illiterate

mass will not be able to access the services so easily. So for the

illiterate mass, we will launch a service where they will call us

and ask for the service. This way we can transform the illiterate

mass into our potential customers who may, in future be our

brand loyal customers. The line will be named Operators

Line.

2. There are many customers who do not know how to operate the

mobile apart from receiving and making calls. There are old

people who cannot use the mobile services at all. For all of

them, there will be the Operator Line, which will be a hotline

and will never be busy.

3. In todays market scenario rural market cannot be ignored. The

people in the rural area are mostly uneducated and familiar with

their local languages. Many of them cannot even read messages

or access services offered to them. So, the Operator Line acts

as unique platform for them to access in their local languages.

They can call the Operators Line and leave voices messages to

activate the service and to send it to his acquaintances. Ouroperators will record the message and will act as linker between

the rural people and their unsatisfied needs.

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SOME ADDITIONAL FEATURES

1. Safety and emergency services will be quick to access. In this crisis period

even a miss call will work and we will respond to them as early as possible.

Even the customer is running out of balance this facility will be provided to

them on credit also.

2. Market and Mandi rates will be sent to interested customers who subscribe

for the service.

3. Updates of road , air and rail traffic reports are to be sent to the interested

customers on a frequent basis.

4. Customer feedback will analyzed and strong and effective action will be taken

against their complaint.

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CONCLUSION

After adding up all the features we can conclude that VAS industry is day by day

becoming a proper platform or media for advertising, Promoting, Launching,

Offering, and selling various products and services. Quick survey through various user

polls has made it a useful proposition for both the service provider and customer. This

service is also engaging various companies with the consumers by playing a role of

linking path through frequent interaction with the consumers. Person to person, person

to application, And Application to person SMS are maintaining the co-ordination and

balance of the business. Maximum users are derived from the Youth segment so quit

naturally this industry is targeting them to increase their user base by designing

packages according to the need of the segment. One click use of application is the key

feature of this service. So at the end of all by catering world of services at one go this

industry is aiming to reach to its utmost volume.

THANK YOU