Saturday, January 25, 2020
Female Genital Mutiliation
Female Genital Mutiliation Female Genital Mutilation According to the definition of the World Health Organization (WHO), Female Genital Mutilation (FGM), also known as female genital cutting and female circumcision, means partial or complete non-therapeutic removal or injury of each of the external female genitals for religious or cultural reasons (utz-billing Kentenich 225). FGM is an injury, physical and mental harm towards women and girls. Female Genital Mutilation has existed for over two thousand years, and over 125 million women and girls have experienced FGM in about 30 countries (Wilson 2013). It happens to 2 million girls every year (utz-billing Kentenich 226). FGM is performed mainly in Africa. (utz-billing Kentenich 226). A narrative coming from the article from Bulletin of the World Health Organization describes a real story, ââ¬Å"I was just seven years old when I was cut,â⬠said Leyla Hussein, a British woman of Somali origin. ââ¬Å"The first thing I hears was my sister screaming. Then it was my turn. Four women held me down while they cut my clitoris. I felt every single cut. The pain was so intense ââ¬â I blacked out.â⬠(Shetty,Priya 6). Instruments that are used to execute FGM are unsterilized knives, razors, scalpels, pieces of broken glass, and so forth, or sterilized instruments under medical conditions (utz-billing Kentenich 226). The ages of girls/women when they undergo circumcision differ regionally (utz-billing Kentenich 225). In Ethiopia and Nigeria, 7- to 8-day-old babies are mutilated. In Somalia, Sudan and Egypt, girls, between 5 and 10 years old, experience circumcision. In some regions in East Africa, women undergo the circumcision during the wedding night, in some regions in West Africa during their first pregnancy (utz-billing Kentenich 225). There are four types of FGM in practice. Type one (clitoridectomy) means ââ¬Å"removal of the clitoral foreskinâ⬠; type two (excision) stands for ââ¬Å"removal of the clitoris with partial or total excision of the labia minorâ⬠; type three (infibulation) stands for ââ¬Å"removal of the clitoris and the labia minora and majoraâ⬠; other types such as ââ¬Å"pricking, piercing of clitoris or vulva, scraping of the vaginaâ⬠, and so forth, are classified as type four (utz-billing Kentenich 226). Many of women and girls who have undergone some forms of FGM suffer severe mental, physical and social consequences. Women will suffer different types of physical consequences of FGM, such as ââ¬Å"bleeding, wound infections, sepsis, shock, micturition problems, fractures, and so forth, as well as undertaking chronic physical problems like ââ¬Å"anemia, infections of the urinary tract, incontinence, infertility, pain, menstruation problems, dyspareunia, and so on (utz-billing Kentenich 225). Mental consequences of women after undergoing FGM include the feelings of ââ¬Å"incompleteness, fear, inferiority and suppressionâ⬠that have a great impact on the whole life of women (utz-billing Kentenich 227). FGM also causes sexual problems such as loss of sexual desire caused by dyspareunia and reduced or no ability to have an orgasm are confirmed (utz-billing Kentenich 227). According to the record from Utz-billing and Kentenich, women have some symptoms of ââ¬Å"chronic irritability and nightmaresââ¬â¢, and woman also have a higher risk for ââ¬Å"psychiatric diseasesâ⬠such as ââ¬Å"depressions, psychosis, neurosis and psychosomatic diseasesâ⬠(utz-billing Kentenich 227). Ground on the interview study done by 47 women in Senegal, over 90 % of patients count FGM as a traumatic experience and depict feelings of ââ¬Å"helplessness, fear, horror and severe painâ⬠; 78% did not expect the intervention; nearly 80% had ââ¬Å"severe fear or affective disordersâ⬠after FGM (utz-billing Kentenich 227). FGM is deeply rooted in the tradition and culture of a society (utz-billing Kentenich 225); in some cultures or societies, FGM is being performed since the mists of time. Female Genital Cutting is a social norm, which means that men and women often support FGM without question since it is a conventional practice that has occurred in communities from generations to generations (orchid project website). FGM serves the encouragement of the patriarchal family system and can be an instrument for birth control (utz-billing Kentenich 226). FGM is considered as being closely connected with cleanliness, virginity, healthiness, beauty and morality (orchid project website). In some societies, the mutilated genital is a symbol of feminity, of transition from girl to woman and of beauty (utz-billing Kentenich 226). In some communities, the girl who does not experience circumcision is considered as ââ¬Å"unclean and sexually promiscuousâ⬠(orchid project website). On the other side, many communities believe that a girl needs to be cut in order to marry well; even though mothers do not want their daughters to be mutilated because of her own painful experience, she is less likely to quit the practice as a result of ââ¬Å"social sanctions in placeâ⬠(orchid project website). In other words, the girls who are cut will have a good marriage because the goal is to guarantee moral behavior and faithfulness of women to their husband, and it also promotes purity and enhances fertility (utz-billing Kentenich 226). On this basis, FGM also serves for protection of the woman from suspicions and disgrace (utz-billing Kentenich 226), and the girls will be thought to be cleaner, more fertile and will be a virgin until her wedding night (orchid project website). In addition, economic reasons play an important role in practicing FGM. ââ¬Å"Parents get money for the pride proportionally to the degree of the operationâ⬠(utz-billing Kentenich 226). Women who experienced FGM have good incomes and have a high social status (utz-billing Kentenich 226). Based on the research which a total of 500 Nigerian women answered the reasons for FGM done by utz-billing Kentenich, we could know that 95% response that FGM is executed for cultural and traditional reasons; 49% said that FGM helps to prevent promiscuity; 18% answered that not mutilated vulva is ugly; 11% believed that FGM prevents the death of male newborns; 9% claimed that the reason to perform FGM is due to pressure of relatives; 6% reported religious reasons (utz-billing Kentenich 226). Concerning human rights, none of the cultural, religious, or social reasons for the performance of FGM could be accepted, since FGM has no health benefits and always leave women with lifelong physical and emotional trauma, and FGM objects women the right of freedom from bodily detriment. FGM is already condemned by many international organizations; the fight to end FGM is now global, with international agencies such as WHO, the World Medical Association, the UNESCO, United Nations Childrenââ¬â¢s Fund (UNICER), and so forth (utz-billing Kentenich 228), and has strong support from governments. Looking back to history, international pressure to end FGM has been aggrandizing since 1997, when the WHO, UNICEF and UNFPA issued a joint statement calling on governments to ban the practice (Shetty,Priya 6). The commitment was renewed in 2008 and, in 2012, the UN General Assembly passed a resolution to enhance efforts towards the elimination of FGM (Shetty,Priya 6). Great Britain, Sweden, Norway, Denmark and Belgium have specific laws that ban FGM (utz-billing Kentenich 228). Africa, Egypt, Benin, Burkina Faso, Djibouti, Ivory Coast, Ghana, Guinea, Guinea Bisson, Kenya, Niger, Senegal, Zimbabwe, Tanzania, Togo, Uganda and the Central African Republic are in the course of e liminating the practice of FGM with specific laws (utz-billing Kentenich 228). Canada, USA, New Zealand and Australia also have laws against FGM (utz-billing Kentenich 228). For instance, in Germany, FGM is regarded as a simple, dangerous, serious bodily injury, manslaughter, or maltreatment of wards; offenders who execute FGM can be sentenced to 15-year imprisonment (utz-billing Kentenich 228). Throughout history, the very first international seminar about FGM was held in 1979, ââ¬Å"recommending the adoption of clear national policies, establishment of national commissions, intensification of general public awareness, and TBA educationâ⬠(Wilson 27). After several decades of doing cross-agency evaluated studies, papers, and articles recommending methods to eliminate FGM, and holding many conferences, six key factors for waiving FGM have become well recognized by NGOs and government bodies as good practice. These six key elements are ââ¬Å"a non-coercive, non-judgmental human rights approachâ⬠, ââ¬Å"community awareness raising of the harmfulness of the practiceâ⬠, ââ¬Å"the decision to abandon needs to be collectiveâ⬠, ââ¬Å"requirement of community public affirmation of abandonmentâ⬠, ââ¬Å" intercommunity diffusion of the decisionâ⬠, and ââ¬Å"a supportive, change-enabling environmentâ⬠(Wilson 27). Based on the six key factors mentioned above, ascertaining the most effective and suitable strategies for eliminating FGM has become a controversial issue referring to moral, disease, and legal models (Wilson 27). Furthermore, according to Diop, in order to effectively end FGM, ââ¬Å"human rights-based education programs should be continued, legislation against FGM should be enforced and funding both locally and nationally for initiatives to end FGM should be increasedâ⬠(Priya Shetty 7). Adopting a commonly stands, some argue that practicing FGM should be condemned and punished by legislation; however, formal legislation is considered as a poor instrument in terms of cultural change (Wilson 27). Moreover, the legislative approach does not work effectively. The situation is that several sovereign states have legislation which outlaw the practice of FGM, either as a specific criminal act or as an act of bodily hard or injury, and many states have an extraterritoriality clause which makes it unlawful for their citizens to go abroad to let FGM practice (Brown, Katherine, David Beecham, and Hazel Barrett 3). UKââ¬â¢s Female Genital Mutilation Act (2003) only applies to those who have permanent residency rights, so people having temporary residency visas, such as students, undocumented migrants and asylum seekers, and so forth, are uncommitted (Brown, Katherine, David Beecham, and Hazel Barrett 3). Therefore, as Diop said, legislation against FGM should be tougher and b e enforced so that FGM can be effectively solved. In other words, what governments should do is to implement appropriate legislation and policies to keep girls from being taken overseas and undergone the circumcision. Simple education campaigns that are designed to impart knowledge on the disadvantageous health outcomes of FGM can be problematic as well, although these education campaigns do a little work (Wilson 27). Women in some countries are not given the same educational opportunities as men. In other words, women have very little power; if they want to end the cycle of mutilation, they would be left behind and would be in trouble (Emily Deruy News). Since FGM is deeply rooted in the tradition and culture of a society, women fear that if they do not make their girls cut, these girls would not be good for marriage, which would make their lives be full of exclusion and poverty in many places (Emily Deruy News). Advocating education can be a possible solution for ending FGM. Education could lead women to the labor market, which would have an impact on weakening traditional family structures. School should be playing an important part in raising awareness of FGM. An education program adopted by every school can provide a breakthrough in cultural attitudes (Nursing Standard 35). School can also impart knowledge to girls from people from different cultures and from mentors who do not support FGM; in the meanwhile, girls may be less likely to continue the cycle of mutilation (Emily Deruy News). Not only women and girls should be educated, but also men and boys should be educated. Educating men and boys about the harm and risk of FGM is considerable. One report released by UNICEF presents data demonstrating that in many countries where FGM takes place ââ¬Å"most women and men think the practice should endâ⬠(Priya Shetty 6). But the problem is that even though men want the FGM to end but th ey have to follow it because of social reasons (Emily Deruy News). On this point, the status of women should be increased via education so that women could have abilities to fight for themselves; however, increasing the status of women is also a complex and deep problem involving culture, societies, and tradition. Public declaration for ending FGM could be a possible solution. According to David Adam, ââ¬Å"by spreading the message of abandonment along their social networks, neighboring communities are introduced to the idea of abandonment, often reducing or even removing resistance to the ideaâ⬠(Priya Shetty 7). This solution works effectively. For example, the very first public declaration took place in Senegal in 1997, and since then the number of community abandoning FGM has grown exponentially (Orchid Project website). Moreover, communities in Guinea, Somalia and the Gambia have done public declarations of abandoning practice, which is good, and other communities are declaring as well (Orchid Project website). In addition, FGM messaging that encourages abandonment can be introduced in the social media, which could draw attention to people all over the world and let people start focusing on FGM (Orchid Project website). Also religious leaders, government officials, celebrities, and superstars can take good advantage of their influential voices in order to contribute to support FGM abandonment (Orchid Project website). Not only NGOs and governments want to abandon FGM, but also churches in Kenya are uniting in effort to end female genital mutilation. The Kenyan bishops and other faith groups are combined together to form a committee to help to end the practice of Female Genital Mutilation (National Catholic Reporter 6). Since ââ¬Å"the church is interested in promoting values and cultures that will enhance human lifeâ⬠, what they have done is to sign the national plan for the clergy to outlaw the execution of FGM, and they consider FGM as a ââ¬Å"retrogressiveâ⬠practice which ââ¬Å"degrades a womanââ¬â¢s lifeâ⬠(National Catholic Reporter 6). So the churches in Kenya think that FGM must be stopped. In short, compared to what NGOs and governments have done, churches do not have great influence on ending FGM, but churches play a helpful role in assisting to end FGM. Overall, those people and organizations that do not support FGM are always trying to find some ways to stop FGM; however, what they have done does not effectively play a part in ending practices in short term, but their efforts do work. Whereas, the progress in ending FGM is slow. On the basis of data from Priya Shetty, the rates of FGM in a few countries are decreasing. In Kenya, these rates in women aged 15- to 49- year-old fell from 38% in 1998 to 26% in 2008; in the Central African Republic, rates fell from 43% in 1994 to 24% in 2010 (Shetty,Priya 6). After several decades of effort by every single movement of abandoning Female Genital Mutilation, according to the UNFPA/UNICEF Joint Program, 10,000 communities have abandoned Female Genital Mutilation all over the world, which is a good sign (Orchid Project website). This phenomenon occurs in the countries, such as Senegal, Mauritania, Kenya, Burkina Faso, Ethiopia, and Nigeria (Orchid Project website). This data tells us that attitudes towards FGM have been changing in countries, even though it is not that obvious; however, this means even if the execution of FGM is still universal, there is a change in opinions taking place, which could help to pave the way for further action (Orchid Project website). In the light of Orchid Project website, some countries in West Africa made huge progress on FGM abandonment. For instance, over 5,500 villages have abandoned FGM in Senegal (Orchid Project website). It is still sad to know that more than 3 million female infants and children are at risk for undergoing FGM annually (Sipsma 120). The existence of FGM gives these innocent girls and women lifetime pain and injury. I think the existence of FGM is so ridiculous, and it is also ridiculous that women and men in some regions still subject to practice because of tradition, culture, and society, even though they all think FGM should end. Good thing is that some West Africa countries, like Senegal, stop executing FGM and attitudes towards practicing FGM is changing as well. According to this current trend, I could say confidently that ending FGM is a long-term program and is just around the corner, if every single person, NGO, and government continues to work on the projects of ending FGM whole-heartedly. Work Cited Brown, Katherine, David Beecham, and Hazel Barrett. The Applicability Of Behaviour Change In Intervention Programmes Targeted At Ending Female Genital Mutilation In The EU: Integrating Social Cognitive And Community Level Approaches. Obstetrics Gynecology International (2013): 1-12. Academic Search Premier. Web. 12 Dec. 2014. Churches Unite In Effort To End Female Genital Mutilation. National Catholic Reporter 39.26 (2003): 6. Academic Search Premier. Web. 12 Dec. 2014. Emily Deruy, ââ¬Å"How Realistic Are the New ââ¬ËSolutionsââ¬â¢ to the Female Genital Mutilation Epidemic?â⬠ABC News (2013). http://abcnews.go.com/ABC_Univision/News/realistic-solutions-female-genital-mutilation/story?id=19750777singlePage=true> Web. 11 Dec. 2014 ââ¬Å"Orchid Projectâ⬠, http://orchidproject.org/category/about-fgc/why-fgc-happens/> Shetty, Priya. Slow Progress In Ending Female Genital Mutilation. Bulletin Of The World Health Organization 92.1 (2014): 6-7. Academic Search Premier. Web. 10 Dec. 2014. Sipsma, Heather L., et al. Female Genital Cutting: Current Practices And Beliefs In Western Africa. Bulletin Of The World Health Organization 90.2 (2012): 120-127F. Academic Search Premier. Web. 12 Dec. 2014. Utz-Billing, I., and H. Kentenich. Female Genital Mutilation: An Injury, Physical And Mental Harm. Journal Of Psychosomatic Obstetrics Gynecology 29.4 (2008): 225-229. Academic Search Premier. Web. 10 Dec. 2014. Wilson, Ann-Marie. How The Methods Used To Eliminate Foot Binding In China Can Be Employed To Eradicate Female Genital Mutilation. Journal Of Gender Studies 22.1 (2013): 17-37. Academic Search Premier. Web. 10 Dec. 2014.
Friday, January 17, 2020
Marketing and Buying Decision
Principles of Marketing Principles of Marketing 2012 Name: Robert Barnes Student Number: 21154021 Institution: University of West London Word count: 1455 2012 Name: Robert Barnes Student Number: 21154021 Institution: University of West London Word count: 1455 Table of Contents 1. 0 Introduction2 2. 0 Question 1 3 2. 1 Personality 3 2. 2 Motivation6 2. 3 Conflict6 3. 0 Question 2 8 Bibliography9 1. 0 Introduction The case study I have chosen to cover is ââ¬Å"Breezing out for a night on the tilesâ⬠. It discusses the rise of the premium pre-mixed drinks industry between 1995-2000, in particular the Bacardi Breezer brand.It looks at the marketing activity which has taken place and the brand association the marketers aimed to achieve. In this report I will be exploring the buying process involved when purchasing an alcoholic beverage, the influencing factors when making a decision and the role that marketing plays, in these decisions. The definition of marketing is ââ¬Å"The manag ement process which identifies anticipates and supplies customer requirements efficiently and profitably. â⬠Adrian Palmer 2004 Personality noun (plural personalities)The coon of characteristics or qualities that form an individualââ¬â¢s distinctive character: ââ¬â Oxford Dictionary 2012 ENTJ Frank, decisive, assume leadership readily. Quickly see illogical and inefficient procedures and policies, develop and implement comprehensive systems to solve organisational problems. Enjoy long-term planning and goal setting. Usually well informed, well read, enjoy expanding their knowledge and passing it on to others. Forceful in presenting their ideas. ââ¬â Introduction to Type, Sixth Edition by Isabel Briggs-Myers 1998 2. 0 Question 1Q. Give an overview of how the buying decision-making process might work for purchasing an alcoholic drink in a pub or club. How would this differ when purchasing alcohol in a supermarket or off licence? A. The Theory To answer this question we first need to look at the theories in marketing associated to the buying process, influences and behaviours. Diagram 2. 0 is the structure of the buying process based on the ââ¬Å"Cognitive Paradigmâ⬠theory (Pickton and Broderick 2001) which focuses on the individuals thought process, during a buying decision.It assumes that the buying decision is approached as a problem solving activity and that the consumer is being rational throughout the process. It is widely used as the default theory by marketers and sales professionals when structuring campaigns. It does not however accurately describe the process that occurs during extreme impulse or irrational purchases, which are both, almost intangible processes. For the purpose of this exercise, we will assume that the responsible purchase of alcohol is approached, both rationally and thoughtfully. Diagram 2. 0 ââ¬â The Buying Process. Source: Marketing Communications, by John Egan. 2007) Step 1 of the process is the ââ¬Å"P roblem Recognitionâ⬠. This is the identification of a need, such as ââ¬Å"I am hungry, therefore I need to eatâ⬠. It can however be very complex and the consumer may require education or informing before recognising a problem exists, such as a dentist telling you, you need a filling, even though you hadnââ¬â¢t felt any pain in that tooth. Marketers can exploit this step by feeding information to consumers for goods and services, they hadnââ¬â¢t realised they needed. Step 2 of the process is the ââ¬Å"Information Searchâ⬠.This is when an individual has identified a need but may need to research to find the right solution. For example, if a student identifies a need for a computer, but has a limited budget, he or she might research information to identify the best option for the budget they have. This step can skipped if the consumer has enough knowledge, regarding the possible solutions. Step 3 of the process is ââ¬Å"Evaluationâ⬠. This is when more than one option is available to solve the identified need, and the consumer wants to experience these before purchasing. An example would be someone test driving multiple cars before purchasing one.Effectively they will all satisfy the same need, but the consumer wants to know what the experience is, before making the decision. This step can skipped if the consumer has previous experience or is happy with a certain product or service beforehand. Step 4 of the process is ââ¬Å"Decisionâ⬠. This is simply the final choose for a solution to the identified need, after weighing up all options. Again, a consumer can move directly to this step from ââ¬Å"Problem Recognitionâ⬠if enough prior knowledge exists. Step 5 of the process is ââ¬Å"Purchaseâ⬠. This is when the decision is executed and the goods or services are acquired.Step 6 of the process is ââ¬Å"Post-Purchase Evaluationâ⬠. This is when you access you satisfaction with your product or service after you have acq uired it. If a great experience is had, it will lead to a higher likelihood that you will purchase that product or service again. Applying the theory Table 2. 0 is an application of the above theory, for an individual going through the buying process at both a club and supermarket. Buying Process Step| Nightclub or Pub| Supermarket| Problem Recognition| * A want to let loose. * A need for confidence. * A desire to fit in or stand-out. An aspiration to impress. | * Alcohol for cooking. * Thoughts of a night in. * A desire to relax and unwind. * Drinks for guests and friends. * Cheap drinks before going out. | Information Search| * Advertisement around the club. * Bottles behind the bar. * Drink & cocktail menus. * What others are drinking. * Peer and/or social pressure. | * The label on the bottle. * Prices and special offers. * Staff knowledge. | Evaluation| * Tasting a friends drink. * Design of the bottle. * Recognition of a brand. | * Description on label. * Design and quality of bottle. Alcohol percentage. * Brand recognition. | Decision| * Information processed and decision made. | * Information processed and decision made. | Purchase| * Majority of exchanges in cash. | * Majority of exchanges by credit card. | Post-Purchase Evaluation| * Did that get me drunk? * Did I like the taste? * Do I want another one? * Did it give me a hangover? | * Did I like the taste? * Was it good value? * Will I buy it again? * Did it get me to the desired level of drunkenness? | Table 2. 0 ââ¬â The Buying Process of Alcohol in Different Environments.What this application of theory shows, is that there are different factors in play when buying alcohol in a club or pub compared to a supermarket, but the process remains the same. These factors are different mostly due to the environment, information availability, the individualââ¬â¢s intent and marketing strategies. If selling a drink in a club or pub it is more important for your drink to be seen as ââ¬Å"coolâ⬠socially and price is less of a factor whereas if selling in a supermarket, your drink needs to be competitively priced yet still demonstrate a level of quality. 3. 0 Question 2 Q.Detail the individual and group influences that are likely to affect someoneââ¬â¢s choice of drink brand? A. The Theory Diagram 3. 0 demonstrates the individual and group influencing factors when making a buying decision. Diagram 2. 1 ââ¬â Factors affecting buying decisions. (Source: Marketing Communications, by John Egan. 2007) Our strongest influences when making a buying decision are our internal beliefs and values. These include Attitude, Perception, Learning, Memory and Motivation. The next in terms of influencing power are Primary Groups. Primary groups are made up of close friends, family and people who you respect.You are affected by these groups by the opinions and values they hold. The next group in terms of influencing power is the Secondary Group. This group is made up of people you know but not closely, or people who you may aspire to be like. Lastly there are influences depending on your Culture, Race or Religion, that will affect your decision when buying something. There are also External factors that include things that are beyond your control, such as Fashion, Law, Time ect. So how do these factors affect someone when buying an alcoholic drink?Well if I was out with my family, I would be unlikely to order shots, as they would not approve, whereas if I was out with close friends, then this would be the opposite. The secondary group has the same effect, but is less powerful in its influence. 4. 0 Question 3 Q. Explain the roles of the various marketing activities described in this case in influencing consumer behaviour. A. In 2000 Bacardi spent ? 14m on a campaign to promote their brand ââ¬Å"Bacardi Breezerâ⬠. The reason to do this is to influence people decisions when making a buying decision. Bacardiââ¬â¢s first large campaign was in 1999 when they spent ? 5. 6m.The campaign was headlined with the slogan ââ¬Å"thereââ¬â¢s Latin spirit in everyoneâ⬠aimed at the 18-24 year old market. This campaign was created to give the brand an exotic, cool to be seen drinking appeal and was aimed at the demographic that would most likely be drinking in an environment where these factors we important in their buying decision. This campaign established Bacardi Breezer as one of the major players in the alco-pop industry. Bibliography * John Martin, 2010. Organizational Behaviour & Management. 4th Revised edition Edition. South Western Educational Publishing. * John Martin, 2004. Organizational Behaviour And Management. Edition. Thomson Learning. * Laurie J. Mullins, 2006. Essentials of Management and Organisational Behaviour. Edition. FT Press. * Isabel Briggs Myers, 1998. Introduction to Type: A Guide to Understanding Your Results on the Myers-Briggs Type Indicator. 6th Edition. Center for Applications of. * Adrian Furnham, 2008. Pe rsonality and Intelligence at Work: Exploring and Explaining Individual Differences at Work. 1 Edition. Routledge. * Stephen P. Robins, 2010. Organizational Behaviour. 1 Edition. Pearson Books. * John Ivancevich, 2010. Organizational Behavior and Management. 9 Edition. McGraw-Hill/Irwin
Thursday, January 9, 2020
Business potential of data solutions in the kolkata sme market - Free Essay Example
Sample details Pages: 20 Words: 6088 Downloads: 8 Date added: 2017/06/26 Category Statistics Essay Did you like this example? 1. AUTHORISATION The project Business potential of data solutions in the Kolkata SME market has been done during my Summer Internship Program at Vodafone India during February to May of 2011, as a partial fulfillment of the requirement of PGPM program of IBS Kolkata. 2. ACKNOWLEDGEMENT The Summer Internship Program at Vodafone India was a great learning experience for me. The project was quite interesting as the telecom industry is a highly evolving industry in India with intense competition and lots of changes happening. Donââ¬â¢t waste time! Our writers will create an original "Business potential of data solutions in the kolkata sme market" essay for you Create order The project would not have been a smooth run for me without the help of lots of people. I would like to mention Mr. Saugat Kumars (company guide) help at Vodafone with respect to practical exposure to the telecom industry. He had given me thorough insight into the dynamics of the telecom industry and also facilitated practical exposure through variety of activities. I would also like to acknowledge Mr. Siddhartha Kars (marketing manager) guidance regarding project formulation, questionnaire designing and chalking out a plan towards effective execution of the project. Also, there were a lot of other people at Vodafone, who helped me to understand this industry and work through my project. In the academic front, I would like to mention the support of my faculty guide Prof. Bhaskar Basu and my SIP coordinator Dr. Subir Sen. They have given me constant guidance throughout my project regarding academics and SIP formalities. Most importantly, I am grateful to my family who had been always supportive and encouraging in all my endeavors. 3. TABLE OF CONTENTS TOPIC NO. TOPIC PAGE NO. 1. Authorisation 3 2. Acknowledgement 4 3. Table of Contents 5 4. Executive Summary 6 5. Introduction 7 5.1. Telecom Industry: Market Scenario 8 5.1.1. Global Scenario 8 5.1.2. Indian Scenario 17 5.2. Indian Telecom Industry 21 5.2.1. Indian Telecom Industry Framework 21 5.2.2. Indian Telecom Circles 22 6. Vodafone: About the Company 23 7. Vodafone: SWOT Analysis 24 8. Description of the Project in Brief 25 9. Objectives of the Project 25 10. Kolkata SME Market 25 11. Vodafone: Products Services 26 12. Summary of the Work Done 26 13. Methodology 28 14. Limitations of the Study 28 15. Questionnaire Design 28 16. Analysis of the Market Survey 30 17. Conclusion 41 18. Recommendations 41 19. Appendix (Questionnaire) 42 20. Bibliography References 50 4. EXECUTIVE SUMMARY As part of my Summer Internship Program of IBS Kolkata, I got an opportunity to do an assignment at Vodafone India. The project was Business potential of data solutions in the Kolkata SME market. Vodafone is one of the premier telecom companies globally and getting an opportunity to work there helped me gain a lot of exposure in the corporate world. The Telecom is a high volume industry in India with lot of competition. The Telecom industry in India is divided into 23 circles and around 14 telecom service providers are presently operating in these circles. The most prominent among the service providers are Vodafone, Airtel, Reliance Communication, Tata Teleservices, BSNL, MTNL, Idea Cellular, Aircel, Uninor etc. The telecom products and services can be broadly classified into voice and data. The data solutions primarily include data cards, Blackberry services, mobile internet, internet leased line and wireline broadband. Vodafones business operations are broadly classified into business and consumer divisions. My project was in the business division and was focused into the SME market of Kolkata. For Vodafone, a SME company is typically a company with annual turnover ranging from 10 to 250 crore rupees. The SME market of Kolkata is highly diversified with companies ranging from various industries, which include manufacturing, en gineering, IT/ ITES, healthcare, education, hospitality, financial services, travel tourism, logistics, real estate, trading (whole sellers/ retailers), pharmaceuticals, etc. In the initial phase of my summer internship at Vodafone, I was required to do secondary research about the telecom industry (both national and global). From the secondary research, I learnt a great deal about the major telecom companies, telecom products services, evolution of telecom technologies and the key operational issues of the telecom industry. Next I was given exposure to field operations through tele-marketing, visiting SME clients, traveling with the sales team, visiting distributors of the company and market mapping. The field exposure helped me to get a feel of the market at the basic level. This exposure later proved to be hugely beneficial when I started doing market survey. The methodology of the project was to do a market research on a sample (consisting of SME companies in the Kolkata area). For time constraints, the sample size was kept at 65. Questionnaire was designed and market survey was conducted. Analysis was done on the data collected, ranging from SME company profiles, market size of the sample with respect to different products, client perception regarding various attributes of telecom service providers, competition among service providers and future SME market implications. From the initial analysis it was found that the SME clients are highly demanding with respect to value they are getting and the price of the products. They were highly aware of their businesss end to end operations and knew very well what kind of products would add value to their business operations. Regarding data solutions, wireless data has huge potential in the coming years. The whole project helped me to learn a lot about the telecom industry and also get exposure to the sales marketing operations of a MNC company like Vodafone. 5. INTRODUCTION The Telecom Industry has evolved a great deal over the past two decades. Advancement in communication and information technology has changed the industry structure dramatically. Earlier our communication needs were restricted to landline phones. But now almost everybody has a mobile phone connection. Mobile phones have changed our lives immensely. It has given us the power of communication anytime anywhere. At present the industry is going through tremendous transformation with the convergence of telecommunication, information technology and computer technology and thus making vast resources of information available in the palm of our hands. Wireless internet is the latest trend in the industry with the advent of 3G technology and in the long term there should be information boom, with gradual advancement towards LTE (long term evolution) and 4G. Wireless internet boom has already been experienced outside India mainly in North American, European and South East Asian markets. It has e ntered India quite late with roll out of 3G and is expected to create huge impact in our social and professional lives. This project is only concerned with the business potential of data solutions. Before going deep into the project let me give a brief idea about the telecommunication industry, telecommunication technologies, major telecom players and various products services. 5.1. TELECOM INDUSTRY: MARKET SCENARIO 5.1.1. GLOBAL SCENARI By the end of 2010, there was an approximately 5.3 billion mobile cellular subscriptions worldwide, including 940 million subscriptions to 3G services. Access to mobile networks is now available to 90% of the world population and 80% of the population living in rural areas. People are moving rapidly from 2G to 3G platforms, in both developed and developing countries. In 2010, 143 countries were offering 3G services commercially, compared to 95 in 2007. Towards 4G: a number of countries have started to offer services at even higher broadband speeds, moving to next generation wireless platforms they include Sweden, Norway, Ukraine and the United States. Mobile cellular growth is slowing worldwide. In developed countries, the mobile market is reaching saturation levels with on average 116 subscriptions per 100 inhabitants at the end of 2010 and a marginal growth of 1.6% from 2009-2010. At the same time, the developing world is increasing its share of mobile subscriptions from 53% of total mobile subscriptions at the end of 2005 to 73% at the end of 2010. In the developing world, mobile cellular penetration rates was expected to reach 68% at the end of 2010 mainly driven by the Asia and Pacific region. India and China alone were expected to add over 300 million mobile subscriptions in 2010. In the African region, penetration rates would reach an estimated 41% at the end of 2010 (compared to 76% globally) leaving a significant potential for growth. The number of Internet users has doubled between 2005 and 2010. In 2010, the number of Internet users would surpass the two billion mark, of which 1.2 billion would be in developing countries. A number of countries, including Estonia, Finland and Spain have declared access to the Internet as a legal right for citizens. With more than 420 million Internet users, China is the largest Internet market in the world. While 71% of the population in developed countries are online, only 21% of the population in developing countries are online. By the end of 2010, Internet user penetration in Africa would reach 9.6%, far behind both the world average (30%) and the developing country average (21%). While in developing countries 72.4% of households have a TV, only 22.5% have a computer and only 15.8% have Internet access (compared to 98%, 71% and 65.6% respectively in developed countries). At the end of 2010, half a billion households worldwide (or 29.5%) would have access to the Internet. In some countries, including the Republic of Korea, Netherlands and Sweden, more than 80% of households have Internet access, almost all of them through a broadband connection. The number of people having access to the Internet at home has increased from 1.4 billion in 2009 to almost 1.6 billion in 2010. There has been strong growth in fixed (wired) broadband subscriptions, in both developed and developing countries. At the end of 2010, fixed (wired) broadband subscriptions would reach an estimated 555 million globally (or 8% penetration), up from 471 million (or 6.9% penetration) a year earlier. Despite these promising trends, penetration levels in developing countries remain low: 4.4 subscriptions per 100 people compared to 24.6 in developed countries. The developing worlds share of fixed (wired) broadband subscriptions is growing steadily. By the end of 2010, the developing world would account for an estimated 45% of global subscriptions (up from 42% five years earlier). Africa still lags behind when it comes to fixed (wired) broadband. Although subscriptions are increasing, a penetration rate of less than 1% illustrates the challenges that persist in increasing access to high-speed, high-capacity internet access in the region. With the rapidly increasing high-bandwidth content and applications on the Internet, there is a growing demand for higher-speed connections. For example, at the minimum broadband speed of 256 kbps, downloading a high-quality movie takes almost 1 days compared to 5 minutes at a connection speed of 100 Mbps. With increase in GDP per capita, the propensity to consume increases and thus increases the availability of various services. In the above figure, GDP per capita and the penetration level of broadband services are mapped against each other. Countries like USA, Switzerland, France, Italy, Spain, Belgium and Canada have high per capita GDP and the broadband penetration is also high in these countries. South Korea has comparatively low per capita GDP but very high broadband penetration. On the other hand, UAE and Saudi Arabia have comparatively high per capita GDP, but their broadband penetration is low. Brazil, Russia and China have comparatively low per capita GDP and their broadband penetration is also low. India is nowhere in the picture in terms of broadband penetration. Data business is seeing a steady growth across global markets. In 2010, data revenue generated per subscriber is highest in US Canada followed by Western Europe, Asia Pacific and Eastern Europe. According to Vodafone, the future of telecom business lies in the mobile data category with majority of the revenue share being generated from there. In 2014, an estimated $337bn revenue will be generated from mobile data business, almost $138bn increase from 2010. India and China are the two emerging economies with substantial number of mobile customers and still having average mobile penetration level at 45% and 54% respectively, thus making them highly lucrative markets for mobile phone service providers. With a high GDP growth, market customers growth and potential for SIM penetration, India is a high value market. Figure: Market Share of Telecom Service Providers Globally (by number of subscribers) (www.knowledgebase-script.com) Globally, China Mobile is in the first position (522m subscribers), followed by Vodafone (333m), Telefonica (202m), America Movil (201m) and Telenor (172m). Two Indian companies Bharti Airtel (125m) and Reliance Communication (100m) are in the top 15 list. 5.1.2. INDIAN SCENARIO The number of telephone subscribers in India increased from 671.69 million in Jun-10 to 723.28 million at the end of Sep-10, registering a sequential growth of 7.68% over the previous quarter as against 8.11% during the QE Jun-10. This reflects year-on-year (Y-O-Y) growth of 42.09% over the same quarter of last year. The overall tele-density in India has reached 60.99 as on 30th September 2010. Subscription in Urban Areas grew from 452.59 million in Jun-10 to 487.07 million at the end of Sep-10, taking the Urban Tele-density from 128.20 to 137.25. Rural subscription increased from 219.09 million to 236.21 million, and the Rural Tele-density increased from 26.43 to 28.42. The share of Rural subscribers has increased slightly to 32.66% in total subscription from 32.62% in Jun-10. About 66.83% of the total net additions have been in Urban areas as compared to 63.47% in the previous quarter. Rural subscription recorded a decline in rate of growth during the quarter, from 9.18% in Jun-10 to 7.81% in Sep-10. Rate of growth for Urban subscription increased marginally from 7.61% in QE Jun-10 to 7.62% in QE Sep-10. With 52.21 million net additions during the quarter, total wireless (GSM + CDMA) subscriber base registered a growth of 8.21% over the previous quarter and increased from 635.51 million at the end of Jun-10 to 687.71 million at the end of Sep-10. The year-on-year (Y-O-Y) growth over the same quarter of last year is 45.79%. Wireless Tele-density reached 57.99. Wireline subscriber base further declined from 36.18 million at the end of Jun-10 to 35.57 million at the end of Sep-10, bringing down the wireline Tele-density from 3.06 in Jun-10 to 3.00 end of Sep-10. Internet subscribers increased from 16.72 million at the end of Jun-10 to 17.90 million at the end of Sep-10, registering a quarterly growth rate of 7.02%. Top 10 ISPs together hold 95% of the total Internet subscriber base. Number of Broadband subscribers increased from 9.47 million at the end of Jun-10 to 10.30 million at the end of Sep-10, registering a quarterly growth of 8.79% and Y-O-Y growth of 42.93%. The growth in the number of Broadband subscribers during the quarter and also on Y-O-Y basis is more or less similar to the growth in the overall telephone subscriber base. Share of Broadband subscription in total Internet subscription increased from 56.7% in Jun-10 to 57.6% in Sep-10. 86.89% of the Broadband subscribers are using Digital Subscriber Line (DSL) technology. Average Revenue Per User (ARPU) for GSM-Full Mobility service declined by 10.16%, from Rs.122 in QE Jun-10 to Rs.110 in QE Sep- 10, with Y-O-Y decrease of 33.1%. ARPU for CDMA full mobility service declined by 1.34%, from Rs.74 in QE Jun-10 to Rs.73 in QE Sep-10. ARPU for CDMA has declined by 17.5% on Y-O-Y basis. GSM subscription continues to grow at a faster rate. At the end of Sep-10, GSM subscribers constituted 84.12% of the wireless market. The GSM subscribers were 578.49 million at the quarter ending Sep-10 as against 527.62 million at the end of the previous quarter, showing a growth of 9.64%. Bharti with 143.29 million subscribers continues to be the largest GSM mobile operator, followed by Vodafone (115.55 million). The CDMA subscriber base increased to 109.22 million during the quarter ending Sep-10 from 107.88 million at the end of previous quarter, thereby showing a growth rate of 1.23%. Reliance with 55.29 million subscribers continues to be the largest CDMA mobile operator. However, in terms of net additions during the quarter, Sistema added the highest number of subscribers (1.54 million), followed by Tata (1.20 million), rest of the service providers recorded decline in subscribers. Figure: Market Share of Telecom Service Providers (GSM) in India (by number of subscribers in million, 2010) (www.trai.gov.in) 5.2. INDIAN TELECOM INDUSTRY 5.2.1. INDIAN TELECOM INDUSTRY FRAMEWORK TRAI The Telecom Regulatory Authority of India (TRAI) is the independent regulator established in 1997 by the Government of India to regulate the telecommunications business in India. DoT The Telecom Commission and the Department of Telecommunications are responsiblefor policy formulation, licensing, wireless spectrum management, administrative monitoring of PSUs, research and development and standardization/validation of equipment etc. WPC The Wireless Planning and Co-ordination (WPC) Wing of the Ministry of Communications, created in 1952, is the National Radio Regulatory Authority responsible for Frequency Spectrum Management, including licensing and caters for the needs of all wireless users (Government and Private) in the country. It exercises the statutory functions of the Central Government and issues licenses to establish, maintain and operate wireless stations. WPC is divided into major sections like Licensing and Regulation (LR), New Technology Group (NTG) and Standing Advisory Committee on Radio Frequency Allocation (SACFA). SACFA makes the recommendations on major frequency allocation issues, formulation of the frequency allocation plan, making recommendations on the various issues related to International Telecom Union (ITU), to sort out problems referred to the committee by various wireless users, etc. TDSAT TDSAT (Telecom Disputes Settlement Appellate Tribunal) was set up in May 2000 by the government of India. The TDSAT was set up so that it can adjudicate over disputes that arise in the telecommunication sector. TDSAT was established with the view to protect the interest of the consumers and service providers of the telecommunication sector and also to encourage and ensure the growth of the telecommunication sector. The various functions of TDSAT (Telecom Disputes Settlement Appellate Tribunal) are that it can adjudicate any disputes that arise between a group of consumers and service providers, a licensee and a licensor, and also between two or more than the service providers. 5.2.2. INDIAN TELECOM CIRCLES The Indian telecom sector is divided into 23 circles which are as follows: Business Potential of Data Solutions in the Kolkata SME MarketPage 1 Soumya Santa Dwari 10BSP0611 PGPM 2010 12, IBS Kolkata Andhra Pradesh Assam Bihar and Jharkhand Chennai Delhi NCR Gujarat Haryana Himachal Pradesh Jammu Kashmir Karnataka Kerala Kolkata Madhya Pradesh Chhattisgarh Maharashtra and Goa (except Mumbai) Mumbai North East Orissa Punjab Rajasthan Tamil Nadu (except Chennai) UP(E) UP(W) West Bengal (except Kolkata) Business Potential of Data Solutions in the Kolkata SME MarketPage 1 Soumya Santa Dwari 10BSP0611 PGPM 2010 12, IBS Kolkata (www.vodafone.in) 6. VODAFONE Vodafone Group plc is a global telecommunications company headquartered in London, United Kingdom. It is the worlds largest mobile telecommunications company measured by revenues and the worlds second-largest measured by subscribers (behind China Mobile), with around 341 million proportionate subscribers as of November 2010. It operates networks in over 30 countries and has partner networks in over 40 additional countries. It owns 45% of Verizon Wireless, the second largest mobile telecommunications company in the United States measured by subscribers. The name Vodafone comes from voice data fone, chosen by the company to reflect the provision of voice and data services over mobile phones. Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It had a market capitalization of approximately 92 billion as of November 2010, making it the third largest company on the London Stock Exchange. It has a secondary listing on NASDAQ. Vodafones operations are categorized in two divisions: Consumer This division caters to the B2C market and primarily operates like a FMCG company. Business This division caters to the B2B market and operates more like a corporate services company. Vodafone Indias Business division is operational in 9 circles. Vodafones Business division operates through marketing sales team and service team. The marketing sales team again operates through KAM (key account manager) They give direct and highly customized service to the corporates and government and are meant for organizations having annual turnover greater than rupees 100 crores. Channel Partner CP is responsible for giving service to small organizations having annual turnover less than rupees 100 crores. 7. VODAFONE: SWOT ANALYSIS STRENGTHS Diversified geographical portfolio with strong mobile telecommunications operations in Europe, the Middle East, Africa, Asia Pacific and to some extent the US Superior brand image Very good network infrastructure Innovative products and services Strong presence in the urban areas WEAKNESSES Business highly concentrated in the European area than other global markets Weak presence in the rural areas OPPORTUNITIES High growth emerging markets, BRICS countries comprising Brazil, Russia, India, China and South Africa Consolidation in the telecom industry Research and development of new telecom technologies THREATS Highly competitive market with key players indulging in price wars Matured European market with very high penetration rates 8. DESCRIPTION OF THE PROJECT IN BRIEF We have to explore the SME market of Kolkata region and identify client needs in terms of data solutions. We also need to compare Vodafone with its competitors in terms of product offerings in the areas of business data solutions for the SME segment. Finally, we need to evaluate the business potential of the Kolkata SME segment in terms of data solutions for Vodafone, both at present and in the near future. 9. OBJECTIVE OF THE PROJECT To find understand the requirement of data solutions in Kolkata SME base (business sector specific data solution requirements). To estimate the market size of data solutions in the Kolkata SME base. To compare the data solutions of Vodafone with its competitors. To forecast future product/ service requirements in Kolkata SME base. 10. KOLAKATA SME MARKET The Kolkata region is largely composed of SME companies rather than large MNCs. For Vodafone, a SME would typically be a company, whose annual turnover is in the range of rupees 10 to 250 crores. Vodafone (Kolkata circle) has divided Kolkata region into 6 zones CBD 1 (central business district), CBD 2, North, South, Howrah and Hoogly. The main concentration of SME business in Kolkata is in the central business district area comprising of Dalhousie, BBD Bag, Esplanade, Central Avenue, Burrabazaar, AJC Bose Road, Chowringhee, Park Street, Park Circus, Camac Street, Shakespeare Sarani, Sarat Bose Road, Minto Park, etc. A lot of SME companies in Kolkata will also fall in the IT/ ITES category, which are mainly concentrated at Sector V, Salt Lake and Rajarhat New Town. Typical features of a SME would be: Small workforce Unorganized Will look for more value for money Less buying power compared to corporates Key decision maker would be one or two individuals for all operations 11. VODAFONE: PRODUCTS SERVICES The various products and services of Vodafone that we are dealing with are as follows: Wireless Data Solutions (2G/ 3G) Data Cards/ USB Dongles Blackberry Plans Vodafone Mobile Connect Fixed Line Voice Data Machine to Machine Solutions Telemetry Solutions Vehicle Tracking/ People Tracking/ Asset Tracking Solutions Security Solutions Bulk SMS Toll Free Numbers Audio/ Video Conferencing VPN (virtual private network) GVN (global virtual number)/ Interactive SMS 3G specialized products Office in a Box (1 3G simcard, 1 fixed line slot, 4 slots LAN + Wi-fi) Wi-mi (1 3G simcard, 5 Wi-fi connections) 12. SUMMARY OF THE WORK DONE Initially, we did secondary research on global Indian telecom market, evolution of telecom technologies, SME market, latest trends in the telecom industry (3G, 4G, Machine to Machine solutions, LTE) and various telecom products services. Next, we were given field exposure in terms of tele-marketing, traveling with FOS (Fleet on Street) team, visiting SME clients, visiting company channel partners and market mapping. Next, we designed questionnaire keeping in mind the project objectives. Finally, we conducted market survey. The learning that we achieved by doing the above tasks are of tremendous value for the execution of our project. It not only gave us an insight into how we were going to approach the project but also an invaluable ground level market exposure. From the field exposure we got a clear picture about the micro level sales operations of the telecom business, the Kolkata SME market overview and most importantly the soft skills of client handling. The learning outcomes of the activities undergone are briefly described below. Activity Learning Outcomes Secondary Research Got an overview of the telecom sector (global national) Became aware of the major telecom companies Came to know about the various telecom products services Learnt about the evolution of telecom technologies Also learnt about the latest trends in the telecom industry Got an idea of the SME sector business structure Tele Marketing Learnt the art of sales pitch Learnt about telephone etiquette Got an idea of how to communicate to a business client Learnt about how to influence a potential customer and close a deal Traveling with FOS Got an idea about the basic level sales and client handling operations of a telecom company Got practical experience of face to face business negotiations Learnt about how to keep business relationship with clients Channel Partner visits Learnt about the sales distribution of a telecom company in the B2B sector Got an idea of the operations of a channel partner Learnt about how company and channel partner operations are integrated SME client visits Got a feel of the Kolkata SME companies Became aware of the client expectations from a telecom service provider Got an idea of the clients perception of Vodafone and its products services Learnt about how to professionally handle clients and responsibly execute tasks Market Mapping Exploration of the Kolkata business areas and identification of prospective clients Became aware of the streets of Kolkata in the business localities and the important office buildings Questionnaire Design What information to capture in order to fulfill our project objectives How to frame questions so that we can capture the desired information 13. METHODOLOGY Sample size will be 65 SME companies in the Kolkata area consisting of Vodafone accounts as well as its competitor accounts. Primary research Vodafone management and sales team Vodafone channel partners Client visits and market survey Secondary research Internet Books and journals Magazines and newspapers Qualitative analysis to explore (using bar charts, pie charts, line diagrams scatter plots) Client characteristics Client perceptions Client awareness Client needs (present future) Quantitative analysis to explore (using Excel) Competitor analysis Relationship with business sector product requirements Relationship with client perception purchase behavior 14. LIMITATIONS OF THE STUDY Time constraints: Kolkata SME market is quite huge and telecom data solutions are continuously evolving, thus 3 months is very short duration to do an in-depth analysis. Availability of secondary data: SME market is largely unorganized, so collection of data from the internet, journals, magazines, published reports and industry white books is largely difficult. Information sharing: Most of the SME companies do not follow industry best practices and lack transparency, therefore gathering information from these companies is a tedious job. Reach to top management: Getting information and gaining access to the top management via the gatekeeper, receptionist and the clerk are quite difficult. 15. QUESTIONNAIRE DESIGN (see appendix for questionnaire) Questions 1 7: To get an overview of the company regarding the business sector, no. of employees, annual turnover, company decision maker, no. of offices. Business sector divided into 16 categories to capture the Kolkata SME market Annual turnover and no. of employees: Options have been categorized into 5 slots keeping in mind that for Vodafone, a SME companys annual turnover will be between rupees 10 to 250 crores. Questions 8 10: To get an idea about the companys telecom service provider, annual telecom expenditure and the telecom services presently used by the company. Telecom service provider: Taken into account major telecom companies like Vodafone, Airtel, Reliance, Tata Teleservices, BSNL, Aircel, Idea Cellular, MTS and Uninor. Annual telecom expenditure: Categorized into 5 options keeping in mind the annual turnover categorization. Typically it is expected that a SME companys annual telecom budget would be 1% of its annual turnover. Telecom products services currently in use: The main products services which might be used by a SME are expected to be fixed line voice data, wireless voice data, bulk SMS, toll free numbers, M2M solutions, VPN, GVN, audio video conferencing, etc. For each of the products in use, we will try to capture the satisfaction level (scaling 1 to 5) and also customer feedback. Question 11: Companys key decision makers awareness regarding telecom products and service providers. Awareness regarding the product services: In this case we will try to capture how aware the client is with the utility and functionality of the products services. Awareness regarding the service providers: This to capture the awareness level of the clients regarding the various telecom service providers with respect to each product service. Questions 12 17: To get a clear picture regarding the client needs, perception of the client with respect to telecom products services and the key attributes that might influence the clients buying behavior. Service provider choice and importance: Here we will try to capture the extent of influence of certain attributes on the clients buying behavior. Comparison of different telecom service providers according to clients perception: Here we will try to get a comparative picture of the different service providers according to the clients perception with respect to certain attributes and products services. Questions 18 26: To analyze the clients future product requirements, changes in the clients business thus its product requirements and the impact of telecom solutions on the clients business. Scaling has been done from 5 to 1, 5 being the most preferable or the highest value and 1 being the least preferable or the lowest value. 16. ANALYSIS OF THE MARKET SURVEY The target companies of the market research belong to the SME category, with annual turnover ranging between 10 to 250 crore rupees. These companies belong to various business sectors such as manufacturing, engineering, IT/ ITES, financial services, healthcare, etc. Due to time constraints the sample size has been restricted to 65. The target companies are mainly located at Salt Lake Sector 5 and Central Kolkata. The analysis will cover companies profile description, SME market size estimation (based on the sample) with respect to various telecom products specially data solutions, SME client perception regarding importance of certain attributes of telecom service providers, competition among the telecom companies and finally future implications in context of business potential in the Kolkata SME market. Figure: Business Sector-wise Division of the Sample Companies The companies in the sample mainly belong to the IT/ ITES sector (9 companies), followed by other services category (8 companies). The other services category mainly include CA companies, legal companies, consultancy, etc. Next comes banking financial services and manufacturing (7 companies each). After that comes engineering and education (6 companies each). From business sector to sector, the business operations of a company change a great deal and thus changes their product and service requirements. Figure: Annual Turnover of the Sample Companies Majority of the companies in the sample have annual turnover in the range 50 100 crore rupees. Only very few companies have turnover in the higher ranges. In total about 21 companies fall in the turnover category of 50 100 crore rupees. This is closely followed by the range 101 150 crore rupees, in which around 18 companies fall. Next comes the category of 50 crore rupees, in which 17 companies fall. More the turnover of a company, the propensity to invest for better functioning of business operations increases. Thus for companies with higher turnovers, their capacity to consume superior quality telecom products and services increases irrespective of the price. Figure: Employee Strength of the Sample Companies Majority of the target SME companies have employees in the range 50 100, with 19 companies falling in this category. Figure: Annual Telecom Expenditure of the Sample Companies Majority of the companies annual telecom expenditure falls in the category of 1-50 lac rupees. Only six companies have annual telecom expenditure above 150 lac rupees. Figure: Market Size of the Target Sample Fixed line voice has the highest number of connections (1479 connections) in the target sample followed by data cards (592 connections) and blackberry (348 connections). With the advent of 3G in India, the growth potential of wireless data solutions like data cards, blackberry services and internet on mobile is immense. In the coming years, wireless data will be the main revenue generator for telecom companies. Figure: Fixed Line Voice Market Share among Target Companies Airtel has the largest number of fixed line voice connections among the sample companies with number of connections at 563. BSNL comes second with number of connections at 458. Figure: Internet Leased Line Market Share among Target Companies In this case, Reliance (11 connections) is the market leader followed by Airtel (7 connections). Figure: Wireline Broadband Market Share among Target Companies In this case, Airtel (64 connections) has the largest presence with BSNL (47 connections) in the second position. Figure: Data Cards Market Share among Target Companies In this product category, Tata Teleservices (167 connections) is the market leader followed by Reliance (126 connections). Figure: Blackberry Market Share among Target Companies Vodafone has the largest number of Blackberry services subscribers (97 connections) among the sample companies and it is closely followed by Airtel (89 connections). Figure: Client Perception with respect to the importance of the Telecom Service Providers Attributes Brand image would be that attribute of a company which explains how a customer would perceive that company. Higher brand value signifies that the customer will aspire to associate and relate with the brand. Lower brand value on the other hand signifies that the customer will most unlikely associate with the brand. Brand image of a company will largely depend on how it endorses its products, quality of its products and how extensively it penetrates the lives of people. Quality in case of data solutions signifies the data transfer speed, network connectivity and network coverage. Price in case of data solutions includes the one time investment in the equipment (blackberry handset, usb dongle, modems, etc) and also periodical subscription charges. Customer service indicates how customer grievances are handled and also to what extent customer enquiries are addressed to. Promotional offers are time to time endorsements to existing customers regarding best value deals so that they are delighted and remain loyal to the company. Innovative solutions indicate how effective the company is in constantly improving their products and addressing the consumer needs by providing customized products and services. User friendliness of products and services means how easily the customer can use the products and avail the services with negligible amount of glitches. Professionalism and transparency indicate to what extent the company is receptive towards consumer needs and how information is shared without any distortions. For example, how company handles billing and customer complains. Most of the clients regard quality and customer service as the two most important attributes for their choice of telecom service providers. Next come price and professionalism transparency. Promotional offers are least important for them. Vodafone has got the highest brand value from the sample clients and is followed by Airtel. This was quite expected owing to the fact that Vodafone spends a lot of money on advertisements and also does sponsorships in a big way. The Zoo Zoo campaign is already a big success. The sample clients have rated Reliance as the most customer service oriented company. It is closely followed by Airtel and Vodafone. In this regard, Vodafone scores the highest and is followed by Airtel and Reliance. In this case, Reliance (4.2 score) scores highest in terms of quality, BSNL (4.1 score) scores highest in terms of price and Airtel (3.9 score) scores highest in terms of promotional offers. In case of Blackberry services, Vodafone (4.6 score) scores highest in terms of quality, Tata Teleservices (4.2 score) scores highest in terms of price and Airtel (4.2 score) scores highest in terms of promotional offers. In this case, Tata Teleservices (4.6 score) scores highest in terms of quality, BSNL (4.2 score) scores highest in terms of price and Tata Teleservices (4.1 score) scores highest in terms of promotional offers. Among the sample companies, the ones who responded that they are most likely to switch their telecom service provider, the main reason for switching is over-priced followed by products services below expectations. Majority of the companies responded that there is a probability that the workforce of the company might increase. 17. CONCLUSION The SME market is a lucrative market with high potential for wireless data solutions. Quality and customer service are the two most important considerations for SME clients regarding telecom service provider choice. Considering data solutions usage, companies belonging to sectors like IT/ ITES, education, financial services, other services, manufacturing and engineering are the frontrunners. Fixed line market will be gradually stagnating. With the advent of 3G, wireless data will be the high growth business vertical and largely revenue generation will happen from this segment. In the wireless data market, Vodafone is in competitive position with respect to Blackberry services, but it is lagging behind others with respect to data cards. Vodafone is superior to others in context to brand image and professionalism transparency, but is behind others with respect to customer service. Vodafone is a new entrant in the fixed line business and may stiff competition from existing players like Airtel, Reliance and BSNL. 18. RECOMMENDATIONS Vodafone should focus on wireless data domain. Vodafone has to improve in terms of customer service. Vodafone has a lot to do regarding data cards with respect to product improvement and market penetration. Vodafone should focus on business sectors that have large requirements for data solutions and those sectors primarily are IT/ ITES, education, financial services, other services, manufacturing and engineering.
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