OBJECTIVES

THE MAIN OBJECTIVES OF THE PROJECT ARE:-

To find out the telecom market share of different companies To make a understanding about the Company IDEA CELLULAR LTD. To make an understanding about the services which they provide. To analyse CSR and advertising strategy followed by the company To analysis the marketing strategies.

CHAPTER 1
1

INDUSTRY AND CO-OPERATE PROFILE

1.1 INDUSTRY PROFILE The Indian telecommunications industry is one of the fastest growing in
projected to become the second largest telecom market globally. According to the Telecom Regulatory Authority of India (TRAI), the number of telecom subscribers in the country increased to 562.21 million in December 2009, an increase of 3.5 per cent from 543.20 million in November 2009. With this the overall teledensity (telephones per 100 people) has touched 47.89. The telecom industry notched up US$ 8.56 billion in revenues during the quarter ended December 31, 2009 helped by a recovery in earnings from both mobile and landline services. According to Business Monitor International, India is currently adding 8-10 million mobile subscribers every month. It is estimated that by mid 2012, around half the country's population will own a mobile phone. This would translate into 612 million mobile subscribers, accounting for a tele-density of around 51 per cent by 2012. 2 the world and India is

Moreover, according to a study conducted by Nokia, the communications sector is expected to emerge as the single largest component of the country's GDP with 15.4 per cent by 2014. The Indian equipment market was estimated at US$ 24 billion in FY09. Finnish giant Nokia is the market leader, with over US$ 3.4 billion revenues in 2008-09, followed by Ericsson at US$ 2.11 billion. With the availability of the 3G spectrum, about 275 million Indian subscribers will use 3G-enabled services, and the number of 3G-enabled handsets will reach close to 395 million by 2013-end, estimates the latest report by Evalueserve. According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in India. Moreover, in an attempt to boost auction of 3G spectrum, the government has allowed prospective bidders to raise short-term funds from domestic market, which could be refinanced through external commercial borrowings (ECBs) within 12 months. The government is expected to mop up US$ 7.53 billion through the auction of 3G spectrums, which is likely to be completed by March 2010. It has fixed the reserve price at US$ 753.74 million. State-run telecom operator BSNL has rolled out 3G services in 318 cities with 856,000 subscribers. BSNL has plans to cross 400 cities by March 31, 2010 and this will be increased to 760 cities by September 2010. And even as debate on 3G continues, TRAI has started consultation on the next level of telecom services. Fourth generation or 4G offers download at faster speeds.

Value-Added Services Market Currently, mobile value-added services (MVAS) in India accounts for 10 per cent of the operator's revenue, which is expected to reach 18 per cent by 2010. According to a study by Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74 billion by 2010. In a bid to increase revenue from add-on services, India's top two mobile firms, Bharti Airtel Limited and Reliance Communications both plan to launch online mobile applications stores.

Bharti Airtel will provide more than 1,250 applications across 25 categories including games, books and social networking on its applications store. Reliance Communications first version of its applications store would go live for GSM customers by the end of February 2010, and by the end of March 2010 an expanded version would be available to its code division multiple access (CDMA) customers as well.

Major Investments The booming domestic telecom market has been attracting huge amounts of investment which is likely to accelerate with the entry of new players and launch of new services.

Norway-based telecom operator Telenor has bought a further 7 per cent in Unitech Wireless for a little over US$ 430.70 million. Telenor now holds 67.25 per cent. Last year, it had bought a 60 per cent stake for US$ 1.23 billion. The government has approved the foreign direct investment proposal of the Federal Agency for State Property Management of the Russian Federation to buy 20 per cent stake in telecom service provider Sistema-Shyam for US$ 660.1 million. Tata Teleservices is planning to invest an additional US$ 1 billion in its recently-launched GSM service Tata DoCo Mo. It had already committed an investment of US$ 2 billion for the GSM services when it was launched in June 2009. Reliance Infratel, the tower subsidiary of Reliance Communications (RCom), will build 56,596 telecom towers by financial year 2010, increasing the total number of towers to 100,000. BSNL, India's leading telecom company in revenue terms, will put in about US$ 1.16 billion in its WiMax project. Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its mobile subscriber base from 40 million at present to over 100 million.

Manufacturing

India's telecom equipment manufacturing sector is set to become one of the largest globally. Mobile phone production is estimated to grow at a CAGR of 28.3 per cent from 2006 to 2011, totalling 107 million handsets by 2010. Revenues are estimated to grow at a CAGR of 26.6 per cent from 2006 to 2011, touching US$ 13.6 billion.

Rural Telephony Rural India had 76.65 million fixed and Wireless in Local Loop (WLL) connections and 551,064 Village Public Telephones (VPT) as on September 2008. Therefore, 92 per cent of the villages in India have been covered by the VPTs. Universal Service Obligation (USO) subsidy support scheme is also being used for sharing wireless infrastructure in rural areas with around 18,000 towers by 2010.

Policy Initiatives The government has taken many proactive initiatives to facilitate the rapid growth of the Indian telecom industry.

100 per cent foreign direct investment (FDI) is permitted through the automatic route in telecom equipment manufacturing. FDI ceiling in telecom services has been raised to 74 per cent. Introduction of a unified access licensing regime for telecom services on a pan-India basis.

Introduction of mobile number portability in a phased manner, starting in the fourth quarter of 2008

The government is implementing a program of connecting 66,822 uncovered villages under the Bharat Nirman programme. The Department of Telecommunications (DoT) has stated that foreign telecom companies can bid for 3G spectrum without partnering with Indian companies. Only after winning a bid, would they need to apply for unified access service licence (UASL) and partner with an Indian company in accordance with the FDI regulations.

The Road Ahead The target for the 11th Plan period (2007-12) is 600 million phone connections with an investment of US$ 73 billion. Apart from the basic telephone service, there is an enormous potential for various value-added services. According to the CII Ernst & Young report titled 'India 2012: Telecom growth continues', revenue from India's telecom services industry is projected to reach US$ 54 billion in 2012, as against US$ 31 billion in 2008

1.2 COMPANY PROFILE

Idea Cellular is a wireless telephony company operating in all the 22 telecom circles in India based in Mumbai. It is the 3rd largest GSM company in India behind Airtel and Vodafone and ahead of state run player BSNL. IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March 2007. IDEA Cellular is a leading GSM mobile services operator in India with over 58 million subscribers, under brand IDEA. It is a pan India integrated GSM operator covering the entire telephony landscape of the country, and has NLD and ILD operations. A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India, in an increasingly segmented market. From basic voice & Short Message Service (SMS) services to high-end value added & GPRS services such as Blackberry, Data card, Mobile TV, Games etc - IDEA is seen as an innovative, customer focused brand. IDEA offers affordable and world-class mobile services to varied

segments of mobile users. Be it high end users, or low-end, price sensitive consumers - IDEA's tariff plans are designed to suit every pocket. With a vision of delighting its customers while meeting their individual communication needs anytime, anywhere, IDEA offers seamless coverage to roaming customers travelling to any part of the country, as well as to international travelling customers across over 200 countries. IDEA Cellular has partnership with over 400 operators to ensure that customers are always connected while on the move, within the country or other parts of the world. IDEA is the winner of The Emerging Company of the Year Award' at The Economic Times Corporate Excellence Awards 2008-09. The company has received several other national and international recognitions for its path-breaking innovations in mobile telephony products & services. It won the GSM Association Award for Best Billing and Customer Care Solution for 2 consecutive years. It was awarded Mobile Operator of the Year Award - India for 2007 and 2008 at the Annual Asian Mobile News Awards IDEA Cellular is an Aditya Birla Group Company, India's first truly multinational corporation. The group operates in 25 countries, and is anchored by over 1, 30,000 employees belonging to 30 nationalities. The Group has been adjudged the 6th Top Company for Leaders in Asia Pacific Region' in 2009, in a survey conducted by Hewitt Associates, in partnership with The RBL Group, and Fortune. The Group has also been rated The Best Employer in India and among the Top 20 in Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007 Our Service Areas The Indian telecommunications market for mobile services is divided into 22 "Service Areas" classified into "Metro", Category "A", Category "B" and Category "C" service areas by the Government of India. These classifications are based principally on a Service Area's revenue generating potential. IDEA is a pan-India operator with services being made available in all parts of the country. The telecom service areas have been divided into Established and New Service Areas. Established Service Areas The established service areas are Delhi, Andhra Pradesh, Gujarat, Maharashtra, Haryana, Kerala, Madhya Pradesh and Uttar Pradesh (West). Licenses for the Maharashtra and Gujarat Service Areas were awarded in December 1995, with network rollout and commercial launch achieved in 1997. In January 2001 the mobile operations in Andhra Pradesh Service Area were integrated with IDEA through a merger with Tata Cellular Limited.

In June 2001, the mobile operations in Madhya Pradesh Service Area were fully integrated with IDEA through an acquisition of RPG Cellcom Limited. In October 2001, the license for Delhi Service Area was acquired during the fourth mobile license auction, with network rollout and commercial launch in November 2002. In January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was acquired with its original licenses in the Service Areas of Haryana, Uttar Pradesh (West) and Kerala. All these Service Areas were re-branded and integrated with IDEA in June 2004.

New Service Areas

The New Service Areas are Uttar Pradesh (East), Rajasthan, Himachal Pradesh, Bihar, Mumbai, Karnataka, Punjab, Orissa, Chennai & Tamil Nadu, Jammu & Kashmir, Kolkata & West Bengal, and Assam & North East. Licenses for Uttar Pradesh (East), Rajasthan and Himachal Pradesh were acquired through the acquisition of Escotel (Escorts Telecommunications Limited). Idea launched its services in Mumbai and Bihar in 2008. The Mumbai launch was the largest Metro City launch in India. In Bihar, Idea acquired 500,000 subscribers in just over 100 days. Brand Idea was launched in Karnataka and Punjab, through the acquisition of Spice Communications. The company has expanded its pan-India presence through service launches in Orissa, Chennai & Tamil Nadu, Jammu & Kashmir, Kolkata & West Bengal, and the North East states in FY10

1.3 COMPANY HISTORY

The chronology of key events of the Company from incorporation is set out below:

1995 Incorporated as Birla Communications Limited Obtained licenses for providing GSM-based services in the Gujarat and Maharashtra Circles following the original GSM license bidding process.

1996 Changed name to Birla AT&T Communications Limited following joint venture between Grasim Industries and AT&T Corporation

1997 Commenced operations in the Gujarat and Maharashtra Circles

1999 Migrated to revenues share license fee regime under New Telecommunications Policy ("NTP")

2000 Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra Pradesh Circle 2001 Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chhattisgarh) Circle Changed name to Birla Tata AT&T Limited Obtained license for providing GSM-based services in the Delhi Circle following the fourth operator GSM license bidding proces 2002 Changed name to Idea Cellular Limited and launched "Idea" brand name Commenced commercial operations in Delhi Circle Reached the one million subscriber mark 2003 Reached the two million subscriber mark 2004 Acquired Escotel Mobile Communications Limited (subsequently renamed as Idea Mobile Communications Limited) Reached the four million subscriber mark First operator in India to commercially launch EDGE services 2005

2005 Subscriber base as on December 31, 2005: 6,473,962 Reached the five million subscriber mark Turned Profit Positive Won an Award for the "Bill Flash" service at GSM Association Awards in Barcelona, Spain Sponsored the International Indian Film Academy Awards 2006 Subscriber base as on December 31, 2006: 12,442,450 Became part of the Aditya Birla Group subsequent to the TATA Group transferring its entire shareholding in the Company to the Aditya Birla Group Acquired Escorts Telecommunications Limited (subsequently renamed as Idea Telecommunications Limited) Reached the 10 million subscriber mark Received Letter of Intent from the DoT for a new UAS License for the Mumbai Circle. Received Letter of Intent from the DoT for a new UAS License for the Bihar Circle through Aditya Birla Telecom Limited. ABNL, the parent of Aditya Birla Telecom Limited, pursuant to a letter dated November 22, 2006, agreed to transfer its entire shareholding in Aditya Birla Telecom Limited to the Company for the consideration of Rs. 100 million. 2007 Subscriber base as on December 31, 2007: 21,054,027 Won an award for the "CARE" service in the "Best Billing or Customer Care Solution" at the GSM Association Awards in Barcelona, Spain Merger of seven subsidiaries with Idea Cellular Limited 2008 Subscriber base as on December 31, 2008: 40,016,153 Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu & Chennai, West Bengal, Orissa, Kolkata, Assam, North East and Jammu & Kashmir Acquired Spice Communications with the operating circles of Punjab and Karnataka 10

 Launched services in Mumbai metro in the largest single metro city launch, ever Launched services in Bihar 2009 Subscriber base as on December 31, 2009: 57,611,872 Idea becomes a pan-India operator Emerging Company of the Year - fastest growing mobile operator in the worlds fastest growing telecom market

1.4 COMPANIES MISSION

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1.5 KEY MEMBERS

Board of Directors Mr. Kumar Mangalam Birla (Chairman)

Smt. Rajashree Birla

Mr. Sanjeev Aga (Managing Director) 12

 Mr. Arun Thiagarajan Ms. Tarjani Vakil Mr. Mohan Gyani Mr. Gian Prakash Gupta Mr. R.C. Bhargava Mr. P. Murari Mr. Biswajit A. Subramanian Dr. Rakesh Jain Mr. Juan Villalonga Navarro Dr. Hansa Wijayasuriya (Alternate to Mr. Juan Villalonga Navarro)

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Management Team -

Corporate Leadership Team Mr. Sanjeev Aga, Managing Director Mr. Akshaya Moondra, Chief Financial Officer Mr. Anil K. Tandan, Chief Technology Officer Mr. Prakash K. Paranjape, Chief Information Officer Mr. Pradeep Shrivastava, Chief Marketing Officer Mr. Navanit Narayan, Chief Service Delivery Officer Mr. Vinay K. Razdan, Chief Human Resource Officer Mr. Rajat K. Mukarji, Chief Corporate Affairs Officer Mr. Rajesh K. Srivastava, Chief Materials & Procurement Officer Mr. Ambrish Jain, Director - Operations Mr. Himanshu Kapania, Director - Operations

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1.6Compitiors
The Key players in the Telecom Market in India: Vodafone Bharti Aircel MTNL MTS Reliance Tata Indicom BSNL BPL

VODAFONE ESSAR

Vodafone essar in India is a subsidiary of Vodafone group plc and commenced operations in 1994 when its predecessor Hutchison telecom acquired the cellular license for Mumbai. Vodafone essar now has operations in 16 circles covering 86% of Indias mobile customer base, with over 34.1 million customers.

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BHARTI ENTERPRISES

Established in 1985, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India.

AIRCEL

The Aircel group is a joint venture between Maxis Communications Berhad of Malaysia and Sindya Securities & Investments Private Limited, whose current shareholders are the Reddy family of Apollo Hospitals Group of India, with Maxis Communications holding a majority stake of 74%. Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. In December 2003, it launched commercially in Chennai and quickly established itself as a market leader a position it has held since. 16

MTNL DELHI

MTNL Was Set Up On 1st April, 1986 By The Government Of India To Upgrade The Quality Of Telecom Services, Expand The Telecom Network, Introduce New Services And To Raise Revenue For Telecom Development Needs Of India S Key Metros Delhi, The Political Capital And Mumbai, The Business Capital Of India.

MTS

Sistema Shyam teleservices limited is a joint venture company between sistema of Russia and Shyam group of India. Currently they operate in the states of Rajasthan, Tamil Nadu, Kerala, Bihar, West Bengal and Jharkhand.

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RELIANCE COMMUNICATIONS

Reliance Communications has a reliable, high-capacity, integrated (Both Wireless and Wire line) and convergent (Voice, Data and Video) digital network. It is capable of delivering a range of services spanning the entire infocomm (Information and Communication) value chain, including infrastructure and services for enterprises as well as individuals, applications, and consulting.

TATA INDICOM

Tata teleservices ltd offers its products and services to customers across India under the name of "Tata Indicom". Tata teleservices limited is Indias leading private basic service operator.

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CHAPTER 2
Marketing Mix

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2.1PRODUCT
Products provided Idea are:1. NETSETTER DATA CARDS 2. PREPAID CARDS 3. POSTTPAID CARDS

Net setter data card

Idea Net setter data card is usb device which can be used in both desktop computer as well as laptops. Idea Net Setter EG612 USB Modem offers internet connectivity and sms facility on the move. Idea Net setter data card works with EDGE and GPRS networks and offers up to 247kbit/s with EDGE and 85.6 Kbit/s with GPRS networks. But in practical use Idea data card offers very moderate speed. Idea Net setter data card Features

GSM/GPRS/EDGE 850 MHz/900 MHz/1800 MHz/1900 MHz Global roaming GRPS/EDGE Class1~Class12 Data and SMS capabilities. Plug & Play function, no installation CD required SIM-lock function

Idea Prepaid Card

Features of the Idea Prepaid Card: You can use it world wide and so it is not necessary that you should change number when you leave your state or your country. You can use the security options that are available in the prepaid card. There is a PUK number in the card. When you enable your security option such as PIN number, it provides only 3 chances for entering the correct PIN number. If in all your 3 chances the PIN number is wrong, then you should get a PUK number from the customer care to enable your SIM card. Before providing the PUK number the customer care member will ask you certain questions and if those are correct, you are provided with your PUK number. So a person who steals your phone cannot use your SIM. 20

Idea Prepaid card To get an Idea Prepaid card, you will require certain documents for verification of your identity and your address as well. When you choose an idea prepaid card, then there is no necessity to change number when you go to a foreign country because Idea mobile numbers are used world wide. What are the necessary documents for buying an Idea Prepaid card?

Passport Driving License Voters Identification Card Your office identification card or students identity card Ration card which has your name Any other identification card that has your name and photograph.

Idea Post-paid Card

Features OF the Idea Post-paid Bill:

Simplicity, Affordability.

You can choose your perfect plan by optimizing your usage and it is very reasonable. Idea Postpaid Bill is a leading GSM mobile service operator with over 20 million customers. Idea has the licenses to operate all over India. It covers nearly 45% of India's population and is expecting to cover the 50% of the potential Indian telecom market. It has the flexible tariff plans and the company also offers GPRS services along with the value added services. The goal is the innovation and it has the facility of music messaging along with the following services,

Cellular jockey, Background Tones, Group Talk and, Email services.

Idea Post-paid Registration & Activation Process: To activate the Idea Post-paid Bill you need to submit the following documents. It include,

For Identity/Address proof, Document containing photographs, For identity proof only, For Address proof only. 21

Value Added Services

Just when you thought you had the cake, we made it possible for you to eat it too. Introducing THE IDEA Value Added Services, a vibrant bouquet of "little conveniences" "small pleasures" "bits of happiness" "dollops of infotainment" and all those "itsy bitsy" wants of yours that together make up THE BIG SMILING PICTURE. SMS based services to Voice based ones, the Idea range cuts across all modes of communication to ensure the BEST VALUE for your money. So be it downloading the latest ring tones or sharing the freshest of blonde jokes, be it checking the status of your cousin's train arrival time or arranging a pick up for your boss's delayed flight, Idea hands you the power to do it all. You could also book a surprise movie ticket or deliver those dainty dandelions for your date or access the latest cricket scores or some serious stock information; or maybe even play downloadable games or chill out with some zany chats with buddies on-line.

22

Value Added Services - Delhi and NCR:Pre Tones Idea GPRS Idea Fresh Sabarimala Pack Subscription Service Kanippayyur Nakshathram Alarm Hotline Cricket Updates Rail Enquiry - Dial 139 Any Time Information Services Voice Mail Say Idea - 55456 Ganesha Speaks - 55181 Dialler Tones - 55456 Prepaid SMS Pack Tarot Prediction Daily and Weekly Horoscope News Updates Yahoo Dating, Mail & Messenger SMS Short Codes Missed Call Alert Ring Tones, Picture Msg & Logos Idea Buzz - 554560456 Horoscope of New Borns

Dialler Tones DIALER TONES will allow Idea subscribers to choose tones/songs of their choice, which would be played to their callers. The service will be subscription based service. Tones/songs can be selected by dialling into our existing Say Idea voice portal, 55456 and saying "DIALER TONES". After which a menu of songs will be presented and subscriber can select the Tone/Song of their choice. Product Concept DIALER TONES solution enables subscribers to make their callers listen to their favourite song every time they call. This service will be available to only those IDEA mobile subscribers who have subscribed to this service, so the callers to all such mobile with this service subscription will be able to hear song rather than traditional tring-tring. 23

 Voice Mail Our Smart Mail Service ensures that you never miss your calls even when your phone is busy, switched off, out of coverage or you are simply too busy to take the call. In such a case, Idea Smart Mail will greet the caller and record a message which you can retrieve later at your convenience. Charges of voice mails Prepaid Calls to 55222 is chargeable at Local i2i tariff. *Normally it is Re. 1 Post Paid 1. Calls to 55202 are toll free 2. Calls to 55201 are toll free 3. Calls coming in to the voice mail would be chargeable for the caller.

GPRS Idea's 3G compatible networks supports General Packet Radio Service (GPRS), which allows you to access Internet websites and information portals on your mobile, making it possible to stay informed and remain truly connected in this dynamically changing and competitive environment GPRS compatible handsets ensure that as a user, you are "always on". There is no need for a dial up connection or any ISP connection. Now you can now carry the World Wide Web in their pocket - The Idea World. Read email, get stock quotes, check the weather, read the latest news and even chat with friends and "Buddies" on Idea Network, Yahoo, MSN and ICQ while on the move. One of the mind-blowing applications on GPRS is Multimedia Messaging Service (MMS). Idea is among the pioneers in the country to provide MMS.\

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 Ring Tones, Picture Msg & Logos Get the latest ring tones of your choice. Just click on the following links to go to the Ring Tone sections of the respective websites, and browse through thousands of ring tones, and select the one that you like to have on your phone. * * * * Estel Ringtones Rediff Ringtones Yahoo Ringtones India times Ringtones

Logos Customize your handset with the Logo of your choice. Just click on the following links to go to the Logos sections of the respective websites, and browse through thousands of logos, and select the one that you like to have on your phone. Estel Logos Rediff Logos Yahoo Logos India times Logos. * * * * Estel Ringtones Rediff Ringtones Yahoo Ringtones India times Ringtones Category General One Liners Adult Blonde Ajit Drinking Regional Abbreviation GEN ONE ADU BLO AJIT DRI REG

Relationships REL Get the latest ring tones of your choice. Just click on the following links to go to the Ring Tone sections of the respective websites, and browse through thousands of ring tones, and select the one that you like to have on your phone.

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2.2Pricing
Market penetration1 The company enters where the products and the market already exists. IDEA being a question mark that means it is competing in a high growth market but with a relatively low share compare to its competitors. Market penetration can be done by attracting competitors customers that implies increase in market share. The strategy that IDEA can adapt under market penetration is to attract non-users and convince to use their product more often. They are different market penetration strategies like cutting price, increase in promotion, and creating innovative distribution tactics. The target should be in such a way that IDEA sales volume relative to its competitors should be high as expressed in percentage. IDEAs present market share is about 12%, and competitors like airtel, Vodafone, and bsnl have a market share of about 31, 23, and 19 percent respectively. Though telecom industry is growing rapidly every year, there is always a little increment in the percentage of sales for IDEA. To overcome this problem and to occupy the competitors position we recommend following strategies. Increasing the mobile circles which are at present are only 11, so there is always a need to expand its services. Target the rural segment in India which is expected to grow by 15% every year Launch different types of packages as per the requirements for different segments of the customers Provide more high end services like GPRS, mobile internet services Collaboration with different service providers on global basis to provide better facility to customers on roaming. Tracing out the search patterns which are left untapped by the competitors to reveal new markets.

Customer based Pricing strategy Flexible pricing mechanism Controlled by TRAI(Telecom Regulatory Authority Of India)

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2.3PLACE
Marketing Channel

The marketing channel of Idea Cellular is as below. In this channel first manufacture produce the simcards and then they sent to the wholesaler as per the order. Wholesalers send to the retailers and shopkeepers and then lastly retailer sales to customer. 27

PULL Strategy is develop by the Idea Cellular. As Idea Cellular is very known brand and is punch line is For the People, By the People and An Idea Can Change Your Life which is very good thats why Penetrated Market consumer know about that and they ask about Idea Prepaid Simcards. Distribution Strategy There are three types of distribution strategies. 1. Exclusive distribution 2. Selective distribution 3. Intensive distribution Exclusive Distribution: Exclusive distribution means severely limiting the number of intermediaries. It is appropriate when the producer wants to maintain control over the service level & outputs offered by the resellers & it often includes exclusive dealings arrangement by granting exclusive distribution, the producer hope to obtain more dedicated & knowledgeable. Selective Distribution: Selective distribution relies on more than a few but less than all of the intermediaries willing to carry a particular product. It makes sense for established companies seeking distributors. Intensive Distribution: In intensive distribution the manufacturer places the goods or services in as many outlets as possible. This strategy is used for items such as snack foods, soft drinks, newspapers, candies etc.

Distribution Strategy for Idea Cellular: Idea uses selective distribution. It involves the use of less intermediaries who are willing to carry the particular product. It can gain adequate market coverage with more control and less cost.

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2.4PROMOTION
Brand ambassador
Idea had decided not to adopt celebrity endorsements in 2002 while its competitors like Bharti Airtel had been using multiple celebrities to promote its brand. !dea was launched as a brand in April 2002. Brand Ambassadors of idea are:1. Abhishek Bachchan 2. Shriya Saran 3. Siddharth Abhishek Bachchan Idea Cellular, the mobile service provider owned by the Aditya Birla Group, has appointed Abhishek Bachchan as its new brand ambassador. The deal between the two is highest ever to take place in recent times with Bachchan laughing all the way to bank with 30 Crores, it is learnt. Bachchan will allot nine days a year to Idea for three years to shoot the commercials. He will be part of the company's television and print media campaigns. Shriya Saran Actress Shriya Saran is going truly national. No, this time not with films but with ads. The drop-dead gorgeous glam girl has been signed up as brand ambassador for the widely-popular Idea Cellular Company. Shriya joins Abhishek Bachchan as brand ambassador of Idea Cellular. No, no they are not doing any ads together (though that may not be such a bad IDEA Siddharth Siddharth is the new brand Ambassador for Idea Cellular as per reliable sources. He will shoot for the promos in the coming days and they will be aired very soon. Siddharth joining the 29

league it will be very much beneficial in South India as many people identify him to be south Indian.

Idea sponsorships:-

1. IIFA for 10th Anniversary Awards IDEA partners IIFA for 10th Anniversary Awards (Mumbai, April 29, 2009) IDEA IIFA Awards to be held at The Venetian Macao on 13th June, 2009 popular category nominees announced for the IDEA IIFA Awards 2009

2. Oongli Cricket Idea cellular has come up with a new campaign called 'Idea Oongli Cricket', this summer. During this campaign question based on the events and happenings of the ongoing match of the day will be asked. Idea Oongli Cricket can be played by all mobile phone users by SMSing their answer to 9594939291. The number is toll free for Idea subscribers, and standard messaging rates apply for other mobile subscribers. All Idea customers who send in the correct answer will get Idea VAS Packs for three days and participants using other operators will win VAS Packs for one day. Idea Cellular has planned a complete 360 degree campaign with TV, print, radio, digital and outdoor media. The new teaser campaigns already running on Television have been urging people to keep their fingers in good shape as Idea Oongli Cricket is coming. The new 30

format of the Game will allow millions of mobile users in India to participate in this campaign. Idea Brand Ambassador Abhishek Bachchan along with other celebrities and cricketers will appear on TV, in this campaign

3. IDEA Cellular to Sponsor Deccan Chargers Starting IPL With the heightening Cricket fervour in the country, this season, Pan India GSM mobile service operator IDEA Cellular has stepped up the tempo by announcing a multi-year sponsorship agreement with the current IPL Champions, The Deccan Chargers of Hyderabad. The panIndia mobile operator, IDEA Cellular will be the Principal Partner of Deccan Chargers, starting with the third edition of Indian Premier League (IPL) T20 Cricket Tournament, scheduled to start from March 2010. The tie up is unique and significant as it brings together last seasons IPL Champions and IDEA, which believes in being a Champion, Elevating and Humane brand. Further, IDEA is a strong telephony brand in the home of Deccan Chargers, with over 6 million subscribers in the state of Andhra Pradesh. During the upcoming IPL 3 T-20 Tournament, all 27 players of Team Deccan Chargers, along with the Coach and support staff, will be seen sporting the IDEA Cellular logo on the front of their jersey and trousers.

4. IDEAS CALL CRICKET STARTS CAMPAIGN RECORDS 2 MILLION CALLS Idea Cellular is cashing in on the good performance put up by the IPL team Mumbai Indians in the ongoing second season of the T20 league, recording over 2 million calls on its connecting fans cricket superheroes campaign. The GSM operator, which launched its communication 31

campaign last week enabling fans to call players of the Mumbai Indian teams, said it had received two million calls and messages with the master blaster Sachin Tendulkar topping the list with nearly 50 per cent of the calls, followed by spinner Harbhajan Singh and pace bowler Zaheer Khan.

5. ODI Cricket tri-series

IDEA Cellular, the pan-India mobile operator has bagged the Title sponsorship for the ODI Cricket tri-series & the Test match series, to be played in Bangladesh, starting January 4, 2010. The Cricket tournament which includes a seven match ODI tri-series between India, Bangladesh & Sri Lanka and two test match series between India and Bangladesh will be titled 'The IDEA Cup'.

6. Film fare awards Worldwide Media Pvt. Limited, the Times Group- BBC Worldwide joint venture today announced a continuation of its long term sponsorship agreement on the Film fare awards with IDEA Cellular Ltd., to present the 55th Idea Film fare Awards. It's time to gear up for this year's most sizzling event - The Idea Film fare Awards 2009; a time when your favorite stars walk down the red carpet for India's oldest and most coveted cinema awards. Recognizing and honoring the best talents in the Indian film industry, this year will mark the 55th year of Film fare Awards and the second year of its association with the panIndia mobile operator, Idea Cellular. The fastest growing mobile company has been recently conferred the prestigious ET 'Emerging Company of the Year Award'. 32

Scheduled for the 27th February at the famous Yashraj Studios in Mumbai, the 55th Idea Film fare Awards looks forward to bringing you yet another dazzling show acknowledging achievements of our stars withglamour, great performances, suspense, excitement and a thoroughly entertaining evening. With a plethora of films lined up to prove their worth to the black lady, this year too promises to be a power packed show. Once again, the black lady will have a touch of yellow, as the Idea logo will continue to don the most coveted Film fare trophy. 7. Idea RocksIndia4 Nine Music Bands selected by leading male playback singer Shaan, and Vasundhara Das, a versatile singer and actress, will vie for the coveted title of Baap of All Bands on the upcoming show Idea Rocks India 4 to be aired on leading GEC, Colors, starting this Sunday, September 27, 2009. The 4th edition of the hugely popular Annual Musical extravaganza - Idea Rocks India - will be presented by IDEA Cellular, in a completely different avatar this year. Shaan and Vasundhara Das will judge the nine contending teams on the show, along with a number of celebrity judges who will make special appearances in the 13 episode program on Colors, at 8:00 pm every Sunday. The show will be anchored by Karan Singh Grover, a TV serial actor, along with female co-anchor Mansi Parekh an actress who has worked in films, television and theatre.

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Advertisements
"Stay Connected" is a brand promise that looks at the key purpose of mobile telephony. It converges with the tangible requirement of 'network depth' & at the same time, reflects the eternal human need for bonding, kinsman ship, and relationship forming. This new brand campaign enables Idea to own the biggest category benefit of "keeping people connected", through a simple, unique and likeable expression of connectivity. And it makes consumers aware that "no one connects better than Idea". Slated to run through 2004, the campaign utilizes all relevant mainline media to propagate the message to its audiences with 60-second commercial and its various edits, print campaign & outdoor publicity. Apart from it, various innovative media / events has been used to further strengthen the message.

Advertising by idea is done in 2 ways:1. TV - Campaigns 2. Print - Campaigns

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TV - Campaigns:-

Walk when you talk

Idea School

Use mobile save paper

IDEA

My Gang Card

Women's Card

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Idea Network

Idea MMS

Idea Rocks India

Print - Campaigns: IDEA Rocks India

Idea Rocks India

Idea Rocks India

IDEA Women's Card

Beauty Tips

Calls on Zero Balance

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Composite

Expert Advice

Safety Alerts

Background Tones, IDEA Buzz, In Roamers & Nokia Offer

Background Tones

IDEA Buzz

In Roamers Nokia Offer

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Outgoing Free

!-Card Static Campaign

Ecotalk, Talk India, Flexi-charge & Lifetime Static Campaign

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 Stay Connected Static Campaigns

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CHAPTER 3
Corporate Social Responsibility and SWOT analysis

Corporate Social Responsibility

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Trust / Foundation for CSR:- Aditya Birla Centre for Community Initiatives and Rural Development

CSR Contact Person Name of contact person: - Dr. Pragnya Ram Designation: - Group Executive President, Corporate Communication

CSR Area: 1. Education

2. Rural Development

Corporate

Social

Responsibility

The Company is a responsible corporate citizen, and strives to give back to the community it operates in. The Corporate Social initiatives, which the Company has identified and implemented, are as under:

IIM Ahmadabad Idea Telecom Centre of Excellence

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Your Directors wish to inform that, your Company has entered into a tripartite agreement with the Indian Institute of Management, Ahmadabad (IIMA) and the Department of Telecommunications (DoT), to set-up a Telecom Centre of Excellence at the campus of IIMA known as IIMA Idea Telecom Centre of Excellence (IITCOE). This Centre of Excellence focuses on the areas of telecom policies, governance, regulation and Management, especially marketing and customer care. IITCOE will Identify and capture best practices across countries; will enhance human capital through training and teaching programs for policy makers, regulators and the industry; will bring fresh insights from other countries in telecom and in related sectors, and will find solutions to Indias specific situation, especially in the development of rural telephony.

Pocket PCO project Your Company along with International Finance Corporation (IFC), a member of The World Bank Group, has taken an initiative for designing and implementing a Pocket PCO program in India. Idea Pocket PCO is easy to use mobile phone that comes with a special Idea SIM having PCO software embedded in it. The device can be used by the individual as a mobile phone for personal use and as a PCO for business opportunity. The project will help Rural micro-entrepreneurs to create pocket Public Call Offices (PCOs) in Indias under-served areas. The focus is to provide access to telephony services in rural communities, while creating income generating opportunities. Your company is committed to help people to improve their lives by providing high quality access to telecommunications. FICCI-Aditya Birla CSR Centre for Excellence For the purposes of creating greater awareness and promoting Corporate Social Responsibility (CSR), as a part of the corporate mission and values, the Federation of Indian Chambers of Commerce and Industry (FICCI), your Company and other group companies of the Aditya Birla Group, viz., Hindalco Industries Limited, Grasim Industries Limited, Aditya Birla Nuvo Limited and Essel Mining and Industries Limited have set-up a CSR Centre called as FICCI-Aditya Birla CSR Centre for Excellence. The object of setting-up the Centre, amongst others, is to create and develop the culture and concept of CSR among corporates, businesses, industries, organizations as well as other institutions, which benefit employees, their families and the society at large through welfare and training programs

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SWOT ANALYSIS

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Chapter 4
CONCLUSION:
ADVERTISEMENTS ANALYSIS

But overall Idea commercials have been innovative and good in communicating a social message to the audience of India. What should we think is Idea doing CSR or are they promoting their product as well as CSR? 45

1. A Perfect Example Of Democracy. Recently Idea came out with some innovative ads on theam of democracy. People of the worlds largest democracy, India, witnessed a new dimension of the proverbial Government Of the People, For the People, and the People while watching the newly launched media campaign of Idea Cellular a leading telecoms services provider. The new campaign gives the idea of Participative Management for Governance where two-way communication is encouraged between government and public.

By

The brand tagline What an Idea Sirji! is the message given by Brand Ambassador, Abhishek Bachchan, which is echoed by the public at large in the story, and even viewers of the new imaginative ad. The ad explores the idea of Government(s) using mobile service as an efficient tool to gather public opinion and support, while taking vital decisions impacting peoples lives. The new ad, based on the theme of Democracy is the fourth in the series of IDEAs campaign with its brand ambassador. The preceding ones carried the message Championing a world without caste; Championing a world in which no one suffers from the disability to communicate; and the third one based on the theme Education for All. The new campaign is a milestone in the journey of IDEAs brand building as it demonstrates the power of an Idea by looking at mobile telephony and its benefits in a fresh, imaginative and elevating way. IDEA intends to create brand equity by continuously achieving excellence through individual insights that connect with the end consumer thus nurturing a culture of positive discussion and empathy. IDEA connects with consumers beyond transactional offers by looking at mobile telephony as more than a mere communication device. IDEA aims to convey the message that Mobile is a lifetransforming tool for millions. It changes lives!

2. Walk When You Talk This Idea commercial tries to contradict the myth that technology has made man lazy. It tries to convey that when people walk while 46

talking, it helps them maintain their health and hence prevents them from going to a doctor for health-related problems. This is the positive angle of looking at the benefits that technology can provide. This commercial ends with the punch line which has been used in earlier commercial What an Idea Sirji thereby trying to build on the legacy created and take it forward in this commercial. The Idea commercial Walk when you Talk is a little complicated in terms of execution as not many people may not be able to get the message properly (in terms of linking fitness and technology by talking over mobile phones). They could have perhaps used a simpler way of communicating to the audience the relation between walk and talk.

3. Education For All "Idea's new campaign addresses a relevant social issue education for all. The spread of education among girl children is a must in today's times. I am pleased to be playing a part in this campaign," said Abhishek. Idea Cellular has unveiled its new campaign called Education for all. The campaign has been created by Lowe Lintas. The theme of the campaign is based on the idea that the mobile phone can be one of the means of providing education in rural areas. The campaign carries forward the brands positioning, What an idea! Brand ambassador Abhishek Bachchan plays the role of the head of an educational institution. When he is challenged by the physically bound classrooms in schools that prevent providing education to many more children who are in need of education, he uses mobile phones to spread education in villages. "By integrating a social message into the new campaign, we are not only reinforcing the difference that can be made through the use of modern technology, but also the power of a new idea," said R. Balakrishnan, chairman and creative officer, Lowe Lintas. 4. Save Paper Save Trees Every year thousands of trees are ruthlessly felled all over the world. Just to satisfy mans never ending greed! In todays world, paper has become indispensable. We wake up in the morning just to be greeted by the morning newspaper. Little bits of paper are useful to jot down small notes. Our kids extensively use notebooks to do their homework. So.as you can

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seeTheres paper, paper and paper everywhere!! Is there not a solution to this never ending problem?? Of course! We have a solution!! claim IDEA in their latest advertisement. The solution is simple enough! Use your IDEA mobile phone instead of paper. So, we have a middle aged man reading the newspaper online, a waiter at a hotel typing the menu in his mobile and a passenger showing a soft copy of his boarding pass!! Thats not all, IDEA is trying to show us how a paper less world would be. So, you have university students attending their graduation ceremony, holding mobile phones displaying their certificates. A group of musicians replacing their standard song book with a mobile phone having the musical notes. A clerk at the judge typing out the judgment rather than writing it. The commercial carries a serious message that eggs us to Save Planet hence Save Trees hence Save Paper by USING MOBILES wherever possible. It is done beautifully with a humorous undertone that spans the length of the commercial with the punch reserved for the end when the supervisor comes back the next morning to ask the tree he had warned the other day: "Which Ped are you by the way - Post-Ped or Pre-Ped??" ('Ped' is tree in Hindi.) A unique campaign that was such a hit with the viewers! But it seems to have rubbed on the paper makers' forum the wrong end who've objected to its telecast and appealed to the Advertising Standards Council of India. Their stand: the advertisement aims to wean away consumers of paper towards the electronic medium by pitching against the usage of paper and damning the industry as a whole for adversely impacting the environment. My ex-colleague from Global Green, Pradip Srivastava, who currently is Idea Cellular chief Marketing Officer while announcing the withdrawal of the ad says: The campaign is going off-air because every ad or campaign is done for a certain period and we have completed the same as per schedule. We will now move on to a new campaign, but this is in no way related to the objections raised by the paper industry. Whether that is true or not is another issue but this definitely is an anti-climax of sorts to an excellent IDEA!

LEARNINGS

I have learned lot of things through this industrial report. It is a great experience of making industrial report on this Company. Idea Cellular is a wireless telephony company operating in all the 22 telecom circles in
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India based in Mumbai. It is the 3rd largest GSM company in India behind Airtel and Vodafone and ahead of state run player BSNL. Idea cellular have been publically listed in NSE and BSE in March 2007 IDEA Cellular is a leading GSM mobile services operator in India with over 58 million subscribers Following are the learning about the company from this industrial project: History of the Idea cellular. Vision and mission of the Idea cellular. Board of the directors of the Idea cellular. Products of the Idea cellular. Distribution network of the company. Competitors of the company. Promotion strategies of Idea cellular

Bibliography In this project report, while finalizing and for analyzing quality problem in details the following Books, Magazines/Journals and Web Sites have been referred. All

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the material detailed below provides effective help and a guiding layout while designing this text report.

Magazine & Newspaper Articles

Pitch Point Of Purchase Outdoor Asia Outdoor Advertising Hindustan Times

Website / Webpage
Ideacellular.com Google.com Wikipedia.com

www.tutor2u.net 1) Books:
Marketing Management Philip Kotler Research Methodology C. R. Kothari

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