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Research
One can visualize the fact that a detailed study is required in each practical situation for better results. Any effort which is directed to such a study for better results is known as a research. In other words, a research is an organized set of activities to study and develop a model or procedure/technique to find the results of a realistic problem supported by literature and data such that its objectives is (are) optimized and further make recommendations / inferences for implementations.
A CASE STUDY ON TATA INDICOM BY MET STUDENTS
As a partnership of two pioneering brands, TATA DOCOMO promises to deliver relevant new applications and services that will make everyday life simpler and more enjoyable for the consumer. In a market that is cluttered with many operators and confusing options, we will offer simplicity to consumers by being the country's most transparent, innovative and liberating telecom brand."
- Deepak Gulati, President, GSM Business, Tata Teleservices Limited, in June 2009
On June 10, 2009, Tata Teleservices Limited (Tata Teleservices), a CDMA mobile service provider in India, and NTT DoCoMo Inc. (DoCoMo), a Japan-based mobile phone operator, unveiled a new brand identity for their GSM service - Tata DoCoMo.
The new branding followed months after the joint venture (JV) was formed between the two companies in November 2008. Commenting on the new brand identity, Anil Sardana (Sardana), Managing Director of Tata Teleservices said, "TATA DOCOMO is a natural choice of GSM brand-name for us, since it will provide customers a dual advantage-trusted service from the House of Tata, riding on the technological superiority of NTT DOCOMO."
DoCoMo was founded in August 1991 as a subsidiary of Nippon Telegraph and Telephone Corporation (NTT). To reduce its monopoly in the telecom sector, NTT's mobile communication network was spun-off in 1992 to form DoCoMo. The new division targeted the mobile cellular service market in Japan. As of March 2008, DoCoMo had a customer base of 53 million users covering more than half of Japan's cellular market. However, since 2006, the company was losing its market share due to aggressive strategies adopted by low cost competitors, primarily SoftBank Mobile Corp. that sparked a price war in the market. When mobile number portability (MNP) was introduced in Japan in 2006, DoCoMo was adversely affected with a drop of the company's market share to 49.7 percent.
DoCoMo was also unable to compete with its rivals in terms of new customer acquisition.
Tata Teleservices was incorporated in 1996 as the telecom division of the Tata Group lead by Tata Sons. It provided CDMA service in India under the brand 'Tata Indicom'. Its array of telephony services included mobile services, wire-line services, public booth services, and wireless desktop phones. As of 2009, it catered to around 37 million customers across 320,000 towns and villages of India. In November 2008, Tata Teleservices announced it was entering into a JV with DoCoMo.
Under the JV, DoCoMo bought a 26 percent stake in Tata Teleservices for US$ 2.7 billion. Subsequently, DoCoMo made an open offer for 20 percent of the outstanding equity of Tata Telecom Maharashtra Limited (TTML). In addition to this, DoCoMo acquired 6 percent of additional shares in the company from the Tata Group.
The JV was headed by a Business and Technology Cooperation Committee. This committee consisted of senior personnel from both the companies. Their mission was to identify the key areas where the company could work together. The JV gave Tata Teleservices a presence in the GSM market. After it clinched the deal with DoCoMo, Tata Teleservices received a pan-India license to offer its GSM services in 19 telecom circles and received allotments for spectrums in 18 telecom circles from the Department of Telecommunications
The company planned to invest US$ 2 billion for offering the GSM services across India. While the JV marked the entry of Tata Teleservices in the GSM market, it offered DoCoMo an opportunity to tap the Indian telecom market. DoCoMo planned to introduce several services for the Indian consumers such as i-mode, location-based services , and mobile payments.
Moreover, the company also planned to launch advanced technologies such as 3G and Long Term Evolution (LTE) in India. DoCoMo expected the JV to earn profit within three years and was ready to increase its stake in Tata Teleservices subsequently. Toshinari Kunieda, senior vice-president and managing director of the global business division, DoCoMo, said, "We are currently satisfied with our 26% stake. But no one knows what the future (h)old(s). We might increase our stake."
The Tata DoCoMo service was commercially launched on June 24, 2009 after receiving approval from the Securities Exchange Board of India (SEBI) and the Foreign Investment Proposal Board (FIPB). The company launched an advertising campaign consisting of print ads, radio, and outdoor advertising.
The campaign was reportedly well-received by the public. Within three weeks of its launch Tata DoCoMo had completed its South India rollout covering Andhra Pradesh, Kerala, Karnataka, Tamil Nadu and Chennai. The company had also launched the service in Orissa and Maharashtra, and had plans to have a pan-India presence by the end of 2009.
The unique selling proposition highlighted by Tata DoCoMo was the 'pay-as-you-use' scheme under which the subscriber would be charged one paisa per second and only for the duration of use. Based on this concept, the company formed its tagline 'Do the new'.
