The document analyzes market churn in mobile phone providers in Bandung, Indonesia by PT Indosat Tbk. It discusses the background of mobile phone usage in Indonesia, the questions to be answered by the study, and the methodology used. The findings and analysis section looks at respondent profiles, usage patterns of loyal vs switcher customers, brand usage and lifetime for each group. It also analyzes reasons for provider choice and double card usage.

1. ANALYZING MARKET CHURN IN THE USE OF
MOBILE PHONE
PROVIDER IN BANDUNG; A CASE STUDY OF PT
INDOSAT TBK.
INDONESIA
FINAL PROJECT BY:
IHSAN NUR HADI
19007007
1

2. Agenda
Background
Question to be Answered
Methodology
Findings & Analysis
Result Analysis
Agenda
Recomendation
2

3. Indonesia
Background Question to be answered Methodology Findings & Analysis Result Analysis Reccomendation
Communicate
all around
33 Provinces
≥10.000 islands
source: http://id.wikipedia.org/wiki/Daftar_provinsi_Indonesia
3

4. Indonesia
Background Question to be answered Methodology Findings & Analysis Result Analysis Reccomendation
9 Cell Phone
Provider
4

5. Indonesia
Background Question to be answered Methodology Findings & Analysis Result Analysis Reccomendation
5

6. Indonesia
Background Question to be answered Methodology Findings & Analysis Result Analysis Reccomendation
6

7. Indonesia
Background Question to be answered Methodology Findings & Analysis Result Analysis Reccomendation
?
?
?
7

8. Background Questions to be Answered Methodology Findings & Analysis Result Analysis Reccomendation
Questions to be Answered
1. When was the last time the user change the cell
phone provider?
?
2. What is the most frequent provider that the user
currently use? What is the reason the user using
this provider?
3. What kind of characteristic that makes
differentiation between loyal customer &
switcher customer?
4. What factors that make the user stay on their
cell phone provider?
8

9. Background Question to be Answered Methodology Findings & Analysis Result Analysis Reccomendation
Research Design
Explorative Research:
Problem Identification Descriptive Research
Literature Study
Research
Quantitative Data Collection:
Data Analysis Distributive Questionnaire
Design Conclusion Final Report
9

10. Background Question to be Answered Methodology Findings & Analysis Result Analysis Reccomendation
Methodology
• Location  Bandung
• Sampling Size  210 Respondent (using Slovin Method)
Male and Female, 15-50 years old
Metho
Live in Bandung
• Method" "  Quantitative Research
• Product usage  All Operator
dology
2,234,231
1+2,234,231*0.072
= 210 respondent
10

11. Background Question to be Answered Methodology Findings & Analysis Result Analysis Reccomendation
Findings and
Analysis
11

12. Background Question to be Answered Methodology Findings & Analysis Result Analysis Reccomendation
Respondent Profile
Usage Pattern
Age Living Area
50%
38%
20% 20%
52% 48%
20%
19%
12%
20% 15-19thn
20-24thn Urban
25-29thn Suburban
30-40thn
Loyal Switcher New
40-50thn
Can be seen the loyal customer are more dominant than the switcher customer
16% the rest of it classified as the new customer
Age of respondent is ranged between 20-24 years old
By its demography, 48% of the customer live in the outer city, then 52% live in the
inner city
12

13. Background Question to be Answered Methodology Findings & Analysis Result Analysis Reccomendation
Profile Highlight Usage Pattern
50%
Loyal Customer
• Most of the loyal customer dominated by the 38%
age between 40-50 years old.
• Most of the occupation are employee
• The loyal customer mostly live in the outer city
• Duration of the usage mostly more than 12 month
Switcher Customer Loyal Switcher
• Almost 50% of the customer like to change
their provider card, age between 15-24 years old
• Mostly the occupation are students
• Mostly live in the outer city
•Duration of the usage mostly between 1-6 month
13

14. Background Question to be Answered Methodology Findings & Analysis Result Analysis Reccomendation
For Loyal Customer Lifetime
Usage Pattern < 1Month
Occupation
4%
1-3Months Student
3% 3-6Months 3% College Student
7%
6-12Months 16% 9% 9% Housemaid
12% > 12Months Merchant
Employee
8% 5% Professional
74%
11% 10% Businessman
Teacher
29% Retireman
Gender
Woman
52% 48% Man
50%
38%
Living Area
Age
14% 15-19thn Urban
31% 20-24thn Suburban
25-29thn 53% 47%
14% 30-40thn
40-50thn
24% 17%
Loyal Switcher
14

15. Background Question to be Answered Methodology Findings & Analysis Result Analysis Reccomendation
For Switcher Customer
Usage Pattern Lifetime
6%
< 1Month Occupation
1-3Months
6% 3-6Months Student
14% 3% College Student
6-12Months 1%
> 12Months Housemaid
18% Merchant
43% Employee
31% 1% 2% 41% Professional
Gender Businessman
Woman 34%
56% 44% Man
50%
38%
3% Age
15% 15-19thn
Living Area
20-24thn
25-29thn Urban
44% 30-40thn Suburban
55% 45%
38%
Loyal Switcher
15

16. Background Question to be Answered Methodology Findings & Analysis Result Analysis Reccomendation
Brand Usage & Lifetime
Loyal Customer Switcher Customer
Brand Usage Brand Usage
• Loyal Customer in Bandung using IM3 • Mostly switcher Customer in Bandung
Card and Simpati Card by 39% and using the IM3 card by 33% . Then
25%. Then followed by other provider followed by other provider like Simpati,
like Esia, Kartu As, and also XL Kartu As, and also Esia.
Lifetime Lifetime
• All card user, Axis, Flexi, XL, and mentari • All the XL customer using their card more
using their card more than one year. than one year.
• IM3 and Simpati card usage are evenly • Otherwise, IM3 and Simpati card are
from the time less than one month until evenly from the time less than one month
more than 12 months. until more than 12 months.
16

17. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Behavior Loyal Customer
Brand Usage & Lifetime
Lifetime
Brand Total
<1month 1-3month 3-6month 6-12month >12month
As 1 8 9
Axis 1 1
Esia 1 2 1 7 11
Flexi 1 1
IM3 1 1 3 4 24 33
XL 6 6
ment 3 3
Simpati 2 1 1 6 30 40
3 0
Total 3 4 6 11 80 104
17

18. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Behavior Switcher Customer
Brand Usage & Lifetime
Lifetime
Brand Total
<1month 1-3month 3-6month 6-12month >12month
As 2 3 1 6
Axis 2 2 4
Esia 3 2 2 7
Flexi 1 1
IM3 5 15 7 3 2 32
XL 1 1
0
Simpati 1 2 2 2 7
5 10 5 2 22
Total 13 33 19 9 6 80
18

19. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Behavior : Reason to Buy Analysis
Loyal customer
Switcher customer
Friend & family using the same card
Cheaper price Good networking
Good signal quality Cheap call tariff
Lot of people using mentari card
Good coverage
comfortable with this provider
Cheap internet tariff
Cheap tariff
Very cheap call tariff
Good signal quality
save money from buying “pulsa”
Lot of bonus
Free internet access
Have a lot of community group following friend using Three provider
Lot of friend & family using simpati card
Cheap SMS tariff
Good signal quality
19

20. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Behavior : Reason to Buy Loyal Customer
3-6 month 6-12 month >12 month
• Cheap SMS price to all operator
• Bonus SMS
• Good Signal & Wide Coverage
• Frugal
• Bonus SMS & Voice Call
• Cheap Price • Cheap Price
• Want to try the provider • Cheap Call Tariff • Lot of friends using esia
• Bundling Program
• Family using flexi provider
• Free SMS • Good Signal • Lot of friends using IM3 provider
• Cheap Voice Call tariff • SMS Program • Lot of community
• Lot of IM3 users • Lot of Bonuses • Cheap internet service
20

21. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Behavior : Reason to Buy Loyal Customer
3-6 month 6-12 month >12 month
• Very into the mentari card
• Friends & Family using mentari card
•Good signal • Partner and family using • Cheap price
•Cheap voice call tariff simpati card • Good signal
• Good signal • Less failed calling
• Have community
• Family using XL provider
• Good signal
• Wide coverage
• Since first time have cellphone
using XL provider
21

22. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Switcher Customer Behavior : Reason to Buy
<1 month 1-3 month 3-6 month
• Interest from advertising • Good signal quality
• Lot of good features • Lot of friends using simpati
card
• Cheap SMS tariff
• Just want to try • Cheap price
• Lot of friends using esia • Following friends
provider • Cheap voice call tariff
• Previous handphone is
missing
• Cheap tariff • Cheap internet tariff
• Free SMS • Cheap SMS tariff
• Call the same provider is • Following friends
cheaper • Voice call package
• Lot of friends using simpati • Cheap tariff
card • Wide coverage
• Following family using • easy to access internet
simpati
• Good signal quality
• cheap internet tariff
22

23. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Double Card
Analysis
23

24. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Behavior : Double Card Analysis
Loyal Customer Switcher Customer
•21% of the total respondent using more •19% of the total respondent using more
than one card provider in Bandung than one card provider in Bandung.
•51% XL user using two card provider, •All the flexi and XL card provider users are
the second card provider that they use using more than one card provider.
are Kartu As, IM3, and Mentari card •There is around 21% of IM3 user that
•27% IM3 user using more than one card using more than one card provider, the
provider second card provider that they use are
Simpati and Three card provider.
24

25. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Behavior : Loyal Double Card
•21% of total respondent using more than 1 card provider in Bandung
•51% XL user using 2 provider. the providers are Kartu As, IM3, and Mentari.
•For IM3 users, there are 27% of respondent that using more than 1 provider.
Double
Other Provider
Card
Main Provider
Percentag
XL Axis Esia Flexi As Simpati IM3 Mentari
e
As 11% 11% 11% 33%
Axis 0%
Esia 0%
Flexi 0%
IM3 3% 3% 12% 3% 6% 27%
XL 17% 17% 17% 51%
Mentari 33% 33%
Simpati 5% 5% 10%
Three 0%
Total 2% 1% 4% 6% 2% 4% 1% 1% 21%
25

26. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Behavior : Switcher Double Card
•19% of total respondent using more than 1 provider in Bandung.
•All Flexi and XL customers are using more than one card provider.
•There is around 21% of IM3 customer that using more than one provider. the 2nd providers are
Simpati and Three Card.
Other Provider Double
Main Provider Card
XL Esia Simpati Mentari Three Percentage
As 14% 14%
Axis 0%
Esia 0%
Flexi 100% 100%
IM3 7% 14% 21%
XL 100% 100%
Mentari 0%
Simpati 14% 14% 29%
Three 0%
Total 2% 2% 7% 2% 5% 19%
26

27. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Behavior : Reason to Use Another Card
Analysis
Loyal Customer Switcher Customer
More friends using XL Cheaper Call Tariff
Cheaper Call Tariff
Cheaper Internet Tariff
cheaper call to home
Very cheap to call the same provider
27

28. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Behavior : Reason to Use Another Card
Loyal Customer
Another Card Provider
Main Card
Provider
XL Axis Esia Flexi As Simpati IM3 Mentari
• Cheaper price • Pelanggan
• To call the same • More community banyak yang
As • Cheap call tariff
provider (axis) • Lot of friends using pakai
esia simpati
• Cheaper call
• Girlfriends
• Internet access is • Call the same price with flexi • More known
IM3 using As
faster than IM3 provider • More friends number
provider
using flexi
• Just want • Cheap • Better signal
XL
to try SMS tariff quality
• more friends
Mentari using
simpati card
• more friends using
Simpati • Cheap tariff
esia to call
28

29. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Behavior : Reason to Use Another Card
Switcher Customer
Another Card Provider
Main Card
Provider
XL Esia Simpati Mentari Three
• Better signal
As quality
Flexi • Good number
• Wider coverage • Free voice call
IM3 • Backup number if • Lot of pulsa from
IM3 have no pulsa bonuses
• Cheap voice call
tariff when night
XL
• Cheap call the
same provider
Simpa1 • Bundling HP XL
• More friends using
esia provider
29

30. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Switcher card flow process
• In the first card, simpati card is dominant (34%) and mentari
card (24%)
• Then the second card flow, almost all of them change their
card, because of some factor, like the card is missing,
family/friends change he card provider, and also the tariff
and quality its provider
• Third card flow can be seen that the user slightly change
their provider to im3, but there is some of them that change
into another card like Kartu As, Esia, Simpati, Three, XL, and
mentari
• Then at last 34% of respondent change the card into im3
card and followed by the other card provider.
30

31. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Life Cycle Process
2%
simpa. 2%
simpa. 2%
simpa.
7%
im3
5%
Three
7%
Three 7%
Three
15%
As 2%
simpa. 2%
XL
2%
mentari 2%
im3 2%
im3
5%
XL
2%
As 2%
As 2%
As
2%
XL
5%
Esia 5%
im3 5%
im3 5%
im3
2%
im3
2%
Fren 2%
simpa. 2%
Three 2%
Three 2%
Three
2%
Fren 2%
im3 2%
im3
12%
2%
Three
2%
As
7%
As 2%
simpa.
2%
As
2%
simpa.
2%
As
im3 2%
XL 2%
XL 2%
XL 2%
XL
2%
simpa. 2%
simpa. 2%
simpa. 2%
simpa.
2%
Esia 2%
Esia 2%
Esia
2%
im3
10%
As 5%
simpa. 5%
simpa.
2%
simpa.
24%
7%
im3 7%
im3 7%
im3
7%
XL
mentari 2%
Esia 2%
Esia
5%
Three
2%
Three 2%
Three
7%
im3 2%
As 2%
As 2%
As
2%
simpa. 2%
Flexi 2%
Flexi
5%
Esia 5%
Esia 5%
Esia
10%
As
7%
im3 7%
im3 7%
im3
2%
Esia
34%
10%
XL
5%
im3
5%
Esia 5%
Esia
simpa. 2%
simpa.
5%
im3 5%
im3
7%
im3
5%
As 5%
As 5%
As
2%
Esia 2%
simpa. 2%
simpa.
5%
mentari
2%
XL 2%
im3
5%
As
2%
XL 2%
im3 2%
As
2%
simpa. 2%
Esia 2%
Esia 2%
Esia
7%
XL 2%
As
5%
im3 5%
im3 5%
im3
2%
Three
31

32. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Life Cycle Process
5%
Three
15%
As 12%
Three 12%
Three 12%
Three
5%
Esia 24%
As
2%
Fren 17%
As 15%
As 17%
As
12%
im3
2%
Fren
15%
Esia 17%
Esia
17%
Esia
24%
im3 2%
Flexi
24%
mentari
2%
Flexi
5%
Mentari
34%
im3
10%
Simpa. 37%
im3 34%
im3
34%
simpa.
2%
Mentari
29%
XL 12%
simpa.
15%
simpa. 15%
simpa.
7%
XL 7%
XL
2%
XL 2%
XL
32

33. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Conclusion
Loyal Customer Switcher Customer
• The most occupation are • Mostly the occupation are
employee & workers high school and college
• time of usage more than 12 student
month • Time of usage between
• stay with the provider 1-6month
because they feel • Change their provider
comfortable and satisfied because they haven’t find
with their provider the comfortable provider
33

34. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Recommendation
• Increase the service quality
Main factor customer change the provider
• Promotion Media (Twitter)
Increasing the brand awareness
Increasing customer perception about Indosat
34

35. Background Question to be Answered Methodology Findings & Analysis Conclusion Recommendation
Program Recommendation
• Bundling Package Family
With bundling package family, we can get the entire family
to use the provider. Also giving the special promo, special
tariff and feature, they will stay on that provider
• Community Based Program
By finding and offering special program to one community,
we can get more customer
35

36. Thank
You
36