PEST ANALYSIS

The market environment is a marketing term and it refers to all of the forces outside of marketing that affect marketing management's ability to build and maintain successful relationships with target customers. Company, its suppliers, distributors, and its competitors are also impacted by what is happening in the world. To succeed therefore, it is necessary to continuously monitor, anticipate, and adapt, to that environment, and wherever possible, shape that environment. The market environment consists of both the macro environment and the micro environment.

MICRO ENVIROMENT
This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and
Market innovation has contributed to the reduction of the cost of ownership and made services more accessible for low income groups which are very price sensitive. To overcome this hurdle, Indian operators boost the penetration in low income groups with use of innovative tariff plans, offer very cheap handset to the public and exploring attractive VAS which are appealing to different segment of customers.

Innovative tariff plans

The following tariff plans are examples of how they have boosted handset sales:
• Incoming-only plans -employers got phones for chauffeurs and domestic staff; companies keep in touch with mobile work force
• One India tariff plan (1 Rupee/min anywhere in India) – simple to grasp
• Lifetime prepaid plan – no obligation for regular recharging
• Barter of talk minutes for extension of account validity
• Affordable (e.g. 10 Rupees) top-up values for prepaid accounts.

Affordable Handset

• The availability of low cost models from handset manufacturers – price as low as Rs1, 300 to 1,400 (US$ 29 to32)
• An active second-hand handset market – handsets selling at as low as Rs300 to 400 (US$ 7 to 9)Attractive VAS that is compatible with less sophisticated handsets.

DEMOGRAPHIC FACTORS

People make up markets. Marketers would therefore like to know the Size of population , Growth rate of