Marketing TataDocomo

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    Prepared by:Ajay Pratap Singh

    Sujeet Singh

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    Tata DOCOMO is Tata Teleservices Limited'stelecom service on the GSM platform-arisingout of the Tata Group's strategic alliance with

    Japanese telecom major NTT DOCOMO inNovember 2008.

    Docomo already a leader in Japan with 55%market share

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    Development of cutting edge technologiesand services

    Known for 3G technologies and services likei-mode, e-wallet and e-plethora

    First one to physically test 4G

    First one to launch 3G in india

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    Got license to operate in 18 circles out of 22in India

    Some of the other products launched by thecompany include new mobile handsets andnew voice and data services such as BREWgames, voice portal, picture messaging,polyphonic ring tones, interactive

    applications like news, cricket, astrology, etc.

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    Current Teledensity in India: Overall: 67.67%

    Urban: 150.67%

    Rural: 32.11%

    Indian market is characterized by a largesubscriber base and substantial tele-density,the average revenue per user (ARPU) is quitelow

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    There are three types of players in telecomservices: State owned companies (BSNL and MTNL)

    Private Indian owned companies (Reliance

    Infocomm) Foreign invested companies ( TATA DOCOMO,

    Vodafone etc)

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    Bharti Airtel Ltd,

    24.40%

    HFCL , 0.10%

    Reliance

    Communications

    Ltd., 18.30%

    Shyam Telecom , 0.10%

    Vodafone Essar

    Ltd., 17.50%BPL Mumbai , 0.60%

    BSNL, 13.10%

    MTNL, 1.20%

    Idea Cellular + Spice,

    11.10%

    Aircel + Dishnet, 4.60%

    Tata Teleservices(Maharashtra) Ltd.,

    9.10%

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    Strengths: Early Mover 3G

    Innovative pricing models in almost everything be itvoice calls, VAS and IVR services

    Global leader in value added services. USP : Value Added Services like

    Timed SMS

    Diet SMS

    Comix-on-the-go Interactive GPRS application, TATA i-Channel

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    Strong Alliance: Trusted TATA brandcombined with proven technological edge ofNTT DOCOMO

    Plans affordable by common people

    Active in social media sites

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    Weakness Signal Strength

    Customer Service

    Low Price Low Quality Trap

    Opportunities Scope to increase coverage area

    New plans for internet users

    Association with Microsoft to launch windows based

    mobile phones

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    Opportunities TRAIs plan to introduce Mobile Number portability

    in early 2010

    VAS for rural segment like integration with e-

    choupal, mandi prices, weather information, fishshoal movement etc.

    Threats Cut throat competition

    No strong POD other than price

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    Late entrant in Indian Market MNP Introduction, a threat as well

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    Increase the customer base Target Customers:

    Demographic:

    Youth who uses more of internet and other VAS

    services heavily Middle age working population who are heavy voice

    call users

    Geographical

    Rural areas with more than 2000 population

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    TATA DOCOMO is entering a market where: Product demand is highly price elastic.

    Substantial economies of scale are available.

    The product is suitable for a mass market (i.e.

    enough demand). The product will face stiff competition soon after

    introduction

    Because of the cut throat competition, price

    skimming will not work.

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    Most of the telecom players works at margins2.5-3%

    Tata Docomo provides 3% margins to retailersin Bhubaneswar

    Other major players also provide margins insame bracket

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