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  • 8/6/2019 Report on Vas




    Marketing StrategyFor

    Value Added Service

  • 8/6/2019 Report on Vas




    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


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    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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    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


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


    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.


    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.


    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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    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



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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 :


    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.


    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


    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


    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


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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


    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.


    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


    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


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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.


    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



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    1. Large customer base

    2. Large Capital

    3. Larger Market share

    4. Large & loyal resources

    5. Versatility of features

    6. Good customer relation


    1. Responding time is more

    than required.

    2. Technology used for the

    services are a bit back


    3. Less direct advertisements


    1. Capitalizing on websites

    2. Capturing Global Market

    3. Self Internet Browsers and

    cell phones

    4. Increasing growth rate of

    telecom industry


    1. Perfectly Competitive

    market which means new

    competitor is free to enter

    the market.

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    1) Mobility.

    2) Cost effective.

    3) Mass appeal.

    4) Less time consuming.

    5) Widely and uniformly distributed.

    6) One click access.

    7) More advertisement


    1) Less Capital

    2) Less resources

    3) Usage of local language can

    sometimes be problem for migrated


    4) Less Customer base


    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.


    1) Huge competition.

    2) Unwanted and the frequency of

    single offering can be irritating.


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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.


    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


    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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    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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    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.