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A Brief Study

On
“TELECOM SERVICES OF RELIANCE COMMUNICATION’’

PROJECT REPORT

Submitted for Partial fulfillment for


The Award of the Degree of
Mas ter o f Bus iness A dm inis tr ation
(2 007- 2009)

INTE RNATI ON AL SC HO OL OF B USI NESS &


RESEA RCH
# 62B , EL ECT RONI C CITY , PH AS E- 1, O PP. POL ICE S TATI ON ,
BANG AL ORE , PI N- 560100

Submitt
ed by:
GAURAV GUPTA
En roll. No. –
5310700343
R eg. No. -
531M8075F00198
MBA (FINANCE &
RETAIL)
Session: -
2007-2009

1
2
CERTIFICATE

This is to certify that Mr. Gaurav Gupta bearing university


Regd. No. 531M8075F00198 has successfully completed

the project on the topic “TELECOM SERVICE IN RELIANCE


COMMUNICATION”.

Director
Mr.Amit
Gupta
ISBR,Bangalor
e

3
4
CERTIFICATE

This is to certify that Mr. Gaurav Gupta bearing university


Regd. No. 531M8075F00198 has successfully completed

the project on the topic “TELECOM SERVICE IN RELIANCE

COMMUNICATION” under the guidance of Prof. KISHAN.

Under Guidance

Prof. Kishan
ISBR,Bangalore

5
CONTENTS

Chapter – 1 Introduction
 Concept of Reliance communication
 An Overview of current Market Scenario
 Brief Study of the Organization
 Organizational Set-up

Chapter – 2 Main Studies


 Introduction of the Topic
 Apply Six Sigma
 The problems being faced
 What does Company expect to do by solving the
problem

Chapter – 3 Methodologies
 Research problem
 Research Objective & sub- objective
 Information Requirement
 Choice of Research Design
 Research Instrument used
 Sampling Technique used & Sample size

Chapter – 4 Data Analysis & Interpretation


 Data Interpretation & Finding of customer Survey
 Market share of mobile subscribers
 Performance Snapshot

Chapter – 5 Conclusions
 Conclusion
 Finding

Chapter – 6 Suggestions Appendices


 Bibliography

6
 Questionnaire

ACKNOWLEDGEMENT
I would like to express my sincere thanks to all those instrumental in this
project Work. First of all, I would to thank Prof. Amit Gupta Director of
International School of Business & Research for giving me this
opportunity to do this project and learn from it. I am thankful to Reliance
Communication Ltd for giving me helpful information to complete this
project (Research).
I express my sincere thanks to Mr. Raj (Junior Sales Manager) & Prof.
Kishen (ISBR faculty), for helping me in giving me all relevant information
about the product and service.
My heart full thanks to the whole staff and customers (Corporate) of
Reliance Communication Ltd, who gave me continuous support in every
possible manner to gain practical knowledge in Industry.
Finally I would like thank all lecturers, friends and my family for the kind of
support and to all who directly or indirectly helped me in preparing this
project report and special thanks to website- www.rcom.co.in.

Date:
Place: Bangalore GAURAV GUPTA

7
PREFACE
A project is a scientific and systematic study of real issues on a problem with the
application of management concept and skills. The study can deal with small or
big issues in any division of an organization. It can be case study where a
problem has been dealt with, through the process of management. The essential
equipment of a project this that, it should contain scientific collection of data,
analysis and interpretation of data leading to valid conclusion.

Project is an essential part in MBA curriculum. It enables the student to share


the real experience in industry & Market. My project has placed in Market
Research.
The topic of my project was TELECOM SERVICES OF RELIANCE
COMMUNICATION.
This project report tends to give a sharp picture of the telecom industry.

I hope, this study can be of some help to the telecom industry of his product and
service

8
CHAPTER - 1

Introduction

 Concept of Reliance communication


 An Overview of current Market Scenario
 Brief Study of the Organization
 Organizational Set-up

9
(1) CONCEPT OF RELIANCE COMMUNICATION
Anil Ambani: Telecom person of the year 2007

His marketing strategy has made millions of Indians happy, they got the best mobile
tariffs in the world-local call costs at 15 paise/minute, and STD call at 40
paise/minute

NEW DELHI, INDIA: When the VOICE&DATA jury, comprising eminent


professionals from the telecom field, met in Delhi in June to choose the Telecom
Person of the Year 2007, the five-hour selection process was steamy.

The reason was obvious: The telecom sector is growing faster than any other segment
and naturally their CEOs have a lot to crow about. The jury had to select one from
three CEOs, who had made it to the final list through nominations from the industry
and the initial scrutiny. Among the three, one of the main contenders was a young
CEO. The jury decided that he should come back next year to try and win the coveted
award. The list now had two names-both CEOs of two well-known companies. The
pivotal difference between the two: one is an entrepreneur and the other is not so
popular, as his credit is shared among a number of his big daddies.

Following a five-hour closely held, hotly debated discussion, the name was
announced: Anil Dhirubhai Ambani, chairman of Reliance Communications. Anil
Ambani joined Reliance Industries (currently promoted by his brother Mukesh
Ambani, following their split) in 1983 as co-chief executive officer. Forbes ranked
him number 104 among the World's Richest People in 2006. The Ambani family faced
criticism when it announced its ambitious plans to build a countrywide telecom
network, as its prior expertise lay in commodities-textiles and petrochemicals-
business only. Apart from that telecom needs a service-oriented mindset, critics felt.
What they did not remember was how the family had served its millions of
shareholders.

Policies in India are made in line with Ambani's vision, says an industry expert. His
business acumen and closeness to politicians assisted him in making it to the Rajya
Sabha in June 2004, as an independent member. Ambani chose to resign voluntarily
on March 25, 2006.

10
The same association with politicos gave him negative returns too when the
Mayawati Government in Uttar Pradesh put a spanner on his ambitious plans to build
a 1,200-acre SEZ.

Media sees his aggression when he announces financial results for the Reliance ADA
group of companies, and when he attends the annual general meetings and faces
questions from shareholders. When he meets the press, he has answers to all their
questions. He also remembers to call select journalists by name.

To merchant bankers he, who has already contributed immensely to the


financial reforms of the country, is one of the financial wizards of the world. May be
because of his expertise, he gave up in the race to grab Hutchison Essar stake, after
indirectly jacking up the valuation. His negotiations with the Qualcomm chief are also
a folk theory now.

How did Ambani become the VOICE&DATA Telecom Person of the Year 2007? What
are his personal and organizational achievements in the recent past?

His path-breaking marketing strategy that was put in by the strongest team of telecom
professionals the country has ever seen has made millions of Indians happy as they
got the best mobile tariffs in the world. The aggression resulted to adding to his
already swollen kitty. Every hour India will be adding around 20,000 new mobile
customers and Reliance Communications over 4,000. When mobile telephony first
began in India, a local call cost Rs 16 per minute; an STD Rs 50; and a call to the US
Rs 100 per minute. With Reliance Communication’s pioneering price initiative, a local
call now costs a mere 15 paise per minute, STD 40 paise, and a call to the US costs
less than Rs 2 per minute. The presence of Reliance Communications is making the
competition in India panicky. Global telecom forces will also shortly start feeling the
heat. Ambani has also recently announced his Rs 1,200 crore buyout of Yipes
Holdings.

Achiever's Pride

• Undertook financial restructuring of Reliance communications


• To spend Rs 16,000 crore to expand and strengthen network coverage
• After expansion, Reliance Communications will have the single largest wireless
network in the world
• Launched the lowest-cost classic brand handset at Rs 777
• Subscriber base grew to over 28 mn during last fiscal, registering 60% growth
• Total Revenue shot up to Rs 14,468 crore, an increase of 34%
• Net Profit rises to Rs 3,163 crore, an increase of over 600%

11
• Revenues of the wireless business increased by 46% to Rs 10,728 crore
• Broadband achieved revenue growth of 123% to Rs 1,144 crore
• Market capitalization crossed Rs 100,000 crore
• Will add 23,000 more towers
• Telecom services will be available in over 23,000 towns and 600,000 villages
• Next generation DTH network will be launched before end of the year

Reliance Communications' wireless subscriber base grew to over 28 mn last fiscal,


registering a 60% growth. This makes it one of the top two wireless operators in India.

"Economic growth in the future will be indexed to connectivity of millions of enterprise


and individual customers. Over the next few years, we will have over 100 million
customers, making us one of the top 5 telecom players in the world. In four years, we put
up a total of 14,000 towers across the country. This year alone we will add 23,000 more
towers. Our wireless network is currently available in 10,000 towns. By the end of this
year, it will be available in over 23,000 towns and 600,000 villages," Anil Ambani said at
the first annual general meeting of Reliance Communications since the re-organization of
the Reliance Group in June 2005.

"In four years of operations, we invested around Rs 32,000 crore. This year alone we will
invest over Rs 20,000 crore. At the end of this year, we will have covered over 90% of
our population. If Version 1.0 of the Indian telecom story was all about affordability,
Version 2.0 will be about reach. Our

Network expansion will give us the power to drive the market and stay ahead of the
curve," Ambani adds.

According to Ambani, the financial restructuring of Reliance Communications is the


biggest turnaround story in the history of corporate India. The inherited ownership
structure of Reliance Communications was complex. The reorganization has yielded a
simple, fair, and transparent ownership structure, and given Reliance Communications
100% ownership of all operational and associate companies.

Reliance Communications is now among the three most valuable private sector
companies in India, and the five most valuable telecom companies in Asia. In the current

12
Fiscal, Reliance Communications will spend Rs 16,000 crore to further expand and
strengthen its network coverage across India and the rest of the world.

In addition to organic growth, Reliance Communications will leverage the advantages


derived from this impressive financial platform to explore and pursue any significant

opportunities available in the telecommunications sector. "We are currently evaluating a


number of inorganic opportunities in select international markets to further expand our
footprint," Ambani said.

Reliance Communication’s One India, One Tariff plan allowed millions to connect across
India at just one rupee a minute. The company was the first one to break the Rs 1,000
entry-barrier with the launch of the lowest-cost classic brand handset at Rs 777.

As per its expansion plan, Reliance Communications will have the single largest wireless
network in the world, covering over 900 mn Indians or more than 15% of the global
population. It will cover 23,000 towns or every single Indian habitation with a population
of over 1,000. Reliance Communications will cover almost 100% of all rail routes,
providing seamless voice, video, radio, and Internet connectivity to 14 mn commuters
every day. It will also cover almost 100% of all national highways, and 84% of all state
highways, giving millions of users the power to talk, text, surf, play, chat or simply stay
in touch across nearly the entire length of India's 2,00,000-km-long road network.

Having achieved tremendous growth, the main challenge for Reliance Communications is
to improve quality of service and ARPU. Its enterprise business is also not in a position to
compete with the global majors. Stock market valuations may boost the fortunes of an
entrepreneur, but Ambani needs to address the issues faced by the growing mobile
customer base, especially in India, where bureaucracy takes pride in checking the
businessman.

13
(2) AN OVERVIEW OF CURRENT MARKET SCENARIO
Reliance Communications (formerly Reliance Communications Ventures) is one of
India's largest providers of integrated communications services. The company has
more than 20 million customers and serves individual consumers, enterprises, and
carriers, providing wireless, wireline, long distance, voice, data, and internet
communications services through a number of operating subsidiaries. The company
sells communications and digital entertainment products and services through its
chain of Reliance Web World retail outlets. The company's Reliance Infocomm
subsidiary provides wireless communications services throughout India. Reliance
Communications is part of the Reliance - Anil Dhirubhai Ambani Group.

The current network expansion undertaken by Reliance is the largest wireless network
expansion undertaken by any operator across the world.

It was with this belief in mind that Reliance Communications (formerly Reliance
Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone.
This backbone was commissioned on 28 December 2002, the auspicious occasion of
Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and


wire line) and convergent (voice, data and video) digital network. It is capable of
delivering a range of services spanning the entire infocomm (information and
communication) value chain, including infrastructure and services — for enterprises
as well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionizing the way India communicates and


networks, truly bringing about a new way of life.

We will leverage our strengths to execute complex global-scale projects to facilitate


leading-edge information and communication services affordable to all individual
consumers and businesses in India.

We will offer unparalleled value to create customer delight and enhance business
productivity.

We will also generate value for our capabilities beyond Indian borders and enable
millions of India's knowledge workers to deliver their services globally.

14
(3) BRIEF STUDY OF THE ORGANIZATION

Chairman’s profile
Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani
(1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. It
is India's foremost truly integrated telecommunications service provider. With a
customer base of over 36 million including close to one million individual overseas
retail customers, Reliance Communications ranks among the top ten Asian Telecom
companies. Its corporate clientele includes 600 Indian, 250 multinational corporations
and over 200 global carriers and owns and operates the world's largest next
generation, IP enabled connectivity infrastructure, comprising over 150,000
kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the
Asia Pacific region.

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D
Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group,
namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance
Natural Resources.

He is also the president of the Dhirubhai Ambani Institute of Information and


Communications Technology, Gandhinagar

An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is
credited with pioneering several financial innovations in the Indian capital markets.
He spearheaded the country’s first forays into overseas capital markets with
international public offerings of global depositary receipts, convertibles and bonds.

Under his chairmanship, the constituent companies of the Reliance ADA group have
raised nearly US$ 3 billion from global financial markets in a period of less than 15
months.

Shri Ambani has been associated with a number of prestigious academic institutions in
India and abroad.

He is currently a member of:

• Wharton Board of Overseers, The Wharton School, USA


• Board of Governors, Indian Institute of Management (IIM), Ahmedabad
• Board of Governors, Indian Institute of Technology (IIT), Kanpur
• Executive Board, Indian School of Business (ISB), Hyderabad

15
In June 2004, Shri Ambani was elected as an Independent member of the Rajya Sabha –
Upper House, Parliament of India, a position he chose to resign voluntarily on March 25,
2006.

Select Awards and Achievements

• Voted ‘the Businessman of the Year’ in a poll conducted by The Times of India – TNS,
December 2006
• Voted the ‘Best role model’ among business leaders in the biannual Mood of the
Nation poll conducted by India Today magazine, August 2006
• Conferred ‘the CEO of the Year 2004’ in the Platts Global Energy Awards
• Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management
Association, October 2002
• Awarded the First Wharton Indian Alumni Award by the Wharton India Economic
Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a
global leader in many of its business areas, December 2001

Selected by Asiaweek magazine for its list of 'Leaders of the Millennium in Business and
Finance' and was introduced as the only 'new hero' in Business and Finance from India, June
1999.

(4) ORGANIZATIONAL SET UP


16
Reliance Communication Limited

CHAIRMAN

PRESIDENT PRESIDENT PRESIDENT


(PRESONAL (ENTERPRISES (HOME
BUSINESS) BUSINESS) BUSINESS)

SENIOUR
V.P

V.P

GM

DGM

AGM

SENIOUR
MANAGER

MANAGER

DUPTY
MANAGER

ASST.
MANAGER

MANAGEMENT
TRAINING

17
CHAPTER - 2

Main Studies

 Introduction of the Topic


 Apply six sigma
 The problems being faced
 What does Company expect to do by solving the
problem

18
(1) INTRODUCTION OF THE TOPIC

What is SWOT Analysis?

SWOT analysis is a basic, straightforward model that provides direction and serves as a
basis for the development of marketing plans. It accomplishes this by assessing an
organizations strengths (what an organization can do) and weaknesses (what an
organization cannot do) in addition to opportunities (potential favorable conditions for an
organization) and threats (potential unfavorable conditions for an organization). SWOT
analysis is an important step in planning and its value is often underestimated despite the
simplicity in creation. The role of SWOT analysis is to take the information from the
environmental analysis and separate it into internal issues (strengths and weaknesses) and
external issues (opportunities and threats). Once this is completed, SWOT analysis
determines if the information indicates something that will assist the firm in
accomplishing its objectives (a strength or opportunity),

SWOT analysis is a general technique which can be applied across diverse functions and
activities, but it is particularly appropriate to the early stages of planning for a TIPD visit.
Performing SWOT analysis involves generating and recording the strengths, weaknesses,
opportunities, and threats relating to a given task. It is customary for the analysis to take
account of internal resources and capabilities (strengths and weaknesses) and factors
external to the organization (opportunities and threats).

SWOT analysis can provide:


A framework for identifying and analyzing strengths, weaknesses, opportunities and
threats.

This checklist is for those carrying out, or participating in, SWOT analysis. It is a simple,
popular technique which can be used in preparing or amending plans, in problem solving
and decision making.
Illustrative diagram of SWOT analysis If SWOT analysis does not start with defining a
desired end state or objective, it runs the risk of being useless. A SWOT analysis may be
incorporated into the strategic planning model. An example of a strategic planning
technique that incorporates an objective-driven SWOT analysis is SCAN analysis.
Strategic Planning, including SWOT and SCAN analysis, has been the subject of much
research.

19
Strengths: attributes of the organization those are helpful to achieving the objective.
Weaknesses: attributes of the organization those are harmful to achieving the objective.
Opportunities: external conditions those are helpful to achieving the objective.
Threats: external conditions that is harmful to achieving the objective.

SWOT analysis can be used for all sorts of decision-making, and the SWOT template
enables proactive thinking, rather than relying on habitual or instinctive reactions.

The SWOT analysis template is normally presented as a grid, comprising four sections,
one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats.
The free SWOT template below includes sample questions, whose answers are inserted
into the relevant section of the SWOT grid. The questions are examples, or discussion
points, and obviously can be altered depending on the subject of the SWOT analysis.
Note that many of the SWOT questions are also talking points for other headings - use
them as you find most helpful, and make up your own to suit the issue being analyzed. It
is important to clearly identify the subject of a SWOT analysis, because a SWOT analysis
is a perspective of one thing, be it a company, a product, a proposition, and idea, a
method, or option, etc.

Here are some examples of what a SWOT analysis can be used to assess:

• a company (its position in the market, commercial viability, etc)


• a method of sales distribution
• a product or brand
• a business idea
• a strategic option, such as entering a new market or launching a new product
• a opportunity to make an acquisition
• a potential partnership
• changing a supplier
• outsourcing a service, activity or resource
• an investment opportunity

20
RELIANCE COMMUNICATION LIMITED

Strength Weakness
• Low Entry Cost • Branding Image
• Commission Structure • Distribution problem
• Fast Activation Process • Limited product portfolio-
• Network Only Mobile
• Connectivity • Lack of Competitive Strength
• Data GPRS • Limited Budget

Opportunity Threat
• Preference of GSM over • Political destabilization.
CDMA • New Entrants
• New Specialist Application • IT Development
• Rural Telephony • Market Demand
• New Market, Vertical, • Seasonality, Weather Effects
Horizontal
• Competitors` Vulnerabilities

21
APPLY SIX SIGMA:

MATERIALS
M/C
MAN

POORQUALITY PRODU.
SALES PERSON ARE UNCOUNTED & SERVICES
NOT WELL EDUCATED PROBLEM

CUSTOMERS ARE
GOINGTO OTHER
WAY

WAY OF SELLING NOT CUSTOMER ARE NOT


PROPER STAYINGWITHSERVICE NO PROPER SERVICE

METHODS MEASUREMENT MOTHERNATURE

[Fishbone diagram]

22
(2) PROBLEM BEING FACED

• Lack of communication between retailers and distributor

• Lack of improper distribution channel

• Competitors

• Not regular visit of DSE and Runner

• All retailers are not aware of new scheme of RCOM

• Lack of sales promotion and advertisement

• Retailer doesn’t get claim at proper time

• No visit of TSM or any other person to the retailer’s shop

(3) WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE


PROBLEM

• Customer Satisfaction

• Retailer Satisfaction

• Increase in Sale

• Sales Promotion

• Proper Distribution Channel

23
CHAPTER - 3

METHODOLOGIES

 Research problem
 Research Objective & sub- objective
 Information Requirement
 Choice of Research Design
 Research Instrument used
 Schemes, Products & Sample size

24
(1) RESEARCH PROBLEM

 Collection of Data of other companies –Tata indicom, Airtel & BSNL

 Retailers some time gives wrong data

 Limitation of time and money

(2) RESEARCH OBJECTIVE

• To know the demand of Rcom bundle offer along with LGRD 3000 and 6100 as Ill
as the demand of Rcom Bachat pack Sim in the market
• To help in development and introduction of new product
• To identify the company position among competitors
• To determine those factors which persuade retailers for sale of RCOM
sims/product
• To find out which type of schemes retailers prefer and why?
• To study the effect of irregular supply on the sale of the product

(3) SUB OBJECTIVE

• To compare the Airtel and Tata indicom Bundle offer with RDLG 3000,
3500 & 6100 for analyzing the status of RCOM Bundle Offer
• To identify the Market share of RCOM
• To find out the basic problems of retailers
• To find out the performance of Distributor
• To find out the basic problems of Channel of Distributor
• To find out the Claims pending of Retailers

25
(4) INFORMATION REQUAREMENT

Complete Price structure of Rcom, Airtel & Tata indi.offer which includes

• Sim Processing Fees

• Discount Offered

• Schemes offered

• Service Tax

(5) SOURCES OF INFORMATION

• Data collected from the Company

• Secondary Data

• Internet

• Retailers

• Distributor

• Sales Executives

• Other Trainees (Runner)

26
(6) SCHEMES, PRODUCTS

RELIANCE PRODUCT

 Reliance Base Phone

 Reliance Mobile

 Reliance Data Card

 Reliance Voucher, E-Recharge

 Reliance PCO

 Reliance Broad Band

STD CALLING CARD

27
MRP TALKTIME VALIDIY ON-NET OTHER
(NIGHT)

RS. 95 84.66 15 DAY 1.25

RS. 115 102.35 15 DAY 1.20

RS. 125 111.25 15 DAY 1.20

RS. 225 200.25 30 DAY 1.10


RS. 280 249.20 30 DAY 1.10
RS. 525 467.25 30 DAY RS. 0.40 RS. 1.00
RS. 650 578.50 30 DAY FREE RS. 1.00

28
PRODUCTS FOR THE MONTH OF JULY 2008
Rs. 55 FULL T.T of 55 (off net 43+on net 12)
TOP Rs. 77 FULL T.T of 77(off net)
Rs. 210 TALK TIME of Rs. 222 (off net)
UPs
Rs. 310 TALK TIME of Rs. 333 (off net)
Rs. 510 TALK TIME of Rs. 555 (off net)

Rs. 195 Local on-net mobile unlimited FREE (validity 30 days)


Rs. 496 Local & STD on-net mobile unlimited FREE (validity 30 days)
Rs. 35 All STD@ Rs. 1 per minute (validity 30 days)
STVs
Rs. 79 All Local@ Rs. 0.50/min and all STD@ Rs.1/min (valid. 30 days)
Rs. 49 On-net Local@33PAISE, Off-Net Local@49 Paise (valid. 30 days)
Rs. 99 On-net Local@33PAISE, Off-Net Local@Paise, all STD@99 Paise (30D)
Rs. 98 On-net Local FREE between 10PM to 8AM& other local@50 paise (30D)

Rs. 250 FREEDOM TARIFF, TALKTIME Rs. 147.5 AND VALIDITY 30 DAYS
RCVs
Rs. 888 F.T, TALKTIME RS. 888 AND VALI. OF 8 MONTHS

Rs. 399 Talk Time 175/ & Local On-net Unlimited FREE ( 30 days)
UN-
Rs. 499 Local Reliance Mobile & Reliance Smart Unlimited FREE ( 30 days)
LIMITED
Rs. 533 Talk Time Rs. 399.37 & Local On-net FREE B/W 11pm to 6am, ( 30 D)

E-
SMS Rs. 49 500 LOCAL SMS FREE & VALIDITY 30 DAYS

RELIANCE MOBILE HAND-SET

MOBILE CUSTOMER PRICE RETAILAR PRICE

RD LG 3000 1199/- 1165/-

RD LG 3500 1299/- 1265/-

RD LG 3600 1799/- 1690/-

RD LG 6100 2699/- 2540/-

29
Research Methodology

Research methodology is a way to systematically do the job. It may be understood as a science


of studying how research is done scientifically. The most desirable approach with regards to
the selection of the research methodology depends on the nature of particular work, time and
resources available along with the desire level of accuracy.

Research Type Descriptive Research

Data Source Primary Data

Research Instrument Questionnaires

Type of Questionnaire Structured

Sampling Unit Retailer

Sampling Method Judgmental

Contact Method Personal Interview

30
CHAPTER - 4

Data Analysis & Interpretation

 Data Interpretation & Finding of customer


Survey
 Market share of mobile subscribers
 Performance Snapshot

31
(1) DATA INTERPRETATION OF CUSTOMER’S SURVEY

Age group – Tabulating in percentage the age group of customers

Age Group Percentage (%)


18-25 25
28-35 47
36-45 22
Above 45 6

50
45
40
35
30 18-25
25 28-35
20 36-45
15 Above 45
10
5
0
Percentage (% )

Above figure shows that researcher having surveyed 18 respondents, 25% belong to
age group 18-28%, 47% belong to age group 28-35%, belong to age group 36-45 and
6% above age of 45.

Income Level Tabulation


32
Income Group Percentage (%)
8000 42
8000-12000 34
12000-20000 18
> 20000 6

45

40

35

30
8000
25
8000-12000
20 12000-20000
15 > 20000

10

0
Percentage (% )

The above analysis shows that 42% of the respondents belonged to the 8000/- and
below income category, 34% belonged to Rs.8000 to 12000 and 18% belonged to
12000-20000
And 6% above income of 20000/-.

Percentages of customer who are prospective take of a particular service

33
company Percentage (%)
AirTel 40
RIM 5
BSNL 25
IDEA 2
Vodafone 31
Virgin 2

It was found in the survey that 55% of the respondents intended to purchase either AirTel or
Rim services in the future. Out of this 55% more than ½ (that is 30% of the whole sample
size) intended to purchase AirTel and 25% intended to purchase RIM

Scaling About RCOMM Service


34
scale Percentage
Very good 20
Good 25
Satisfactory 40
Poor 10
Can’t say 5

Percentage

40
35
30
25
20 Percentage
15
10
5
0
Very good Good Satisfactory Poor Can’t say

The survey revealed that 40% of the respondents service RIM as satisfactory. This is a
telling comment. However the survey also found out that 20% and 25% of the
respondents service RIM as very good and good respectively. There were 5% of the
respondents who had nothing to say about the RIM. This is due to low service
awareness and low penetration level.

(2) MARKET SHARE OF MOBILE SUBSCRIBERS


35
MARKET SHARE OF CDMA IN KARNATKA

30%
70% RCOMM
TATA indicom

RCOMM – 70%

TATA INDICOM – 30%

36
MARKET SHARE OF GSM IN BANGALORE

AIRTEL – 40%

RCOMM – 5%

BSNL – 25%

VODAFONE – 31%

TATA INDICOM – 2%

IDEA – 2%

37
(3) PERFORMANCE SNAPSHOT
38
12 months period Quarter ended
ended
Particulars Units March- March- June 30, Sept. 30,
2007 2008 2008 2008
Total Subscribers 000’s 28,007 45,794 50,773 56,046
CDMA 000’s 24,620 38,778 42,707 46,840
GSM 000’s 3,387 7,016 8,066 9,206

Consolidated
financials Rs. mn 144,683 190,678 53,222 56,450
Revenue Rs. mn 57,207 81,991 22,502 23,016
EBITDA Rs. mn 56,291 82,064 24,396 25,288
Cash profit from Rs. mn 32,247 70,762 15,564 15,541
Opera. Rs. mn 31,632 54,011 15,123 15,308
PBIT
Net Profit Rs. mn 330,423 523,126 580,324 614,761
Rs. mn 202,719 254,609 264,197 281,598
Total Fixed Assets Rs. mn 18,238 99,700 129,888 152,257
Shareholders' Equity
Net Debt 40.8%
% 39.5% 43.0% 42.3% 27.1%
Key Ratios % 21.9% 28.3% 28.4% 31.8%
EBITDA Margin % 26.8% 33.7% 34.6%
Net Profit Margin 0.54
Return on Net worth Times 0.09 0.39 0.49
Net Debt to funded
equity- ratio
Rs. 371 340 282 271
KPIs
Rs. 0.74 0.74 0.66 0.64
Wireless APRU
Min/month 503 460 424 423
Wireless RPM
Mn Min 23,238 30,045 8,367 9,802
Wireless MoU per sub
Long Distance Minutes

*APRU- Average revenue per user

39
Chapter - 5

Conclusions

 Conclusion
 Finding

40
Conclusion

Indian economy is an emerging one and is growing very fast at the


average GDP rate 8-9% so in this emerging market competition level
among telecommunication services provides new players are coming
who will necessarily intensify the competition. New products and new
schemes are being offered by the telecom service providers. The need
for large information capacity has grown tremendously due to the
demand of real time information. Telecommunication has now become
a major information transmission system and telecom has
undoubtedly emerged as the most important industry in India. Indian
telecom companies are putting in their best offer to rope in major
telecom operators of the world e.g. Vodafone, Aircel and MTN etc. are
playing their role in synergy with the operation of the Indian
companies. Process of acquisition and merger are in process and
future will be only for those companies who have an edge over others
in the field. Service provided and the better quality of network etc. is
provided at affordable cost. In this process of competition it is
assumed that only those companies will survive who adopt suitable
market strategy and technology innovation and up gradation to suit
the aspiration and demand of the consumer.

RCOM cellular ltd. an Anil Ambani Group of cos. is very fast catching
up with the market by providing cheaper calling rates. The market
strategies adopted by its executives are bearing fruits and the
company although being the Second one to enter the market of Bihar
& Jharkhand has found a suitable niche and recognition in the
consumer. But this is not a thing for self contentment as the survey
reveals that in network, service and distributor, its place is very far
behind to other competitors viz. Airtel, BSNL, and Tata indicom etc. so
to withstand the competition resources mobilization and technological
innovation on the part of cos. To upgrade its quality of network and
services is urgently called for.

Market access and growth is alright but the improvement of quality on


the above counts is necessity of the time.

41
Retailers Finding

Services provided by Retailers: -


All the retailers are dealing in all services i.e. providing Recharge Voucher, SIM, and
Tariff Voucher of all the cellular service companies present in Bangalore zone. Also
most of them provide only pre-paid connection.

Satisfaction: -
Most of the retailers i.e. around 74% of respondents are satisfied with RCOMM
brand, 10% of them push RCOMM brand to the customer and rest 16% retailers are
not satisfied with RCOMM brand due to claim pending and the distributor. The
retailers don’t get schemes communicated in time by distributor and distributor does
not provide RCV & e-Top properly.

Problems: -
Around 15% of the respondents that there is network problem with RCOMM, on the
other hand they found its competitors viz. Airtel, BSNL, TATA indicom network
connectivity of very good to good level.
Around 16% retailers which are under puja enterprises distributor projected
problem with distributors. They don’t get schemes communicated in time by
distributor and distributor does not provide RCV & e-Top.

Support from company: -


Most of the retailers ensnared that they are supported by the companies’ personnel &
companies’ helpline.
All companies provide POP (Point of presence) at right time and in adequate number.

Claim process:-
In case of RCOMM process is be claimed very belatedly i.e. almost 77% of the cases
take 60-90 days, where as in case of Airtel most of the i.e. 88% is being finalized in
time limit 0-30 days.
The claim process services of other competitors viz. AirCel, Smart, & Tata
Indicom are almost at par with the IDEA cellular ltd.

42
Chapter – 6

Suggestions
Appendices
 Bibliography
 Questionnaire

43
Suggestions

On the basis of extensive study and research, here are some recommendation and
suggestion which may help the company to market the product and service more
profitability and increase its share in the Telecom market.

1. PROMOTIONAL ACTIVITIES

The company expands the budget allocation for promotional campaign in center
Bangalore. It has affected the sale service brand image of Reliance especially in
Bangalore. Low supports in promotion have lead to fluctuation in sale

There may be some useful tools which can be summed as follows:-

Advertising – Advertising should have a clear objective and message, which has
not been found in recent ads. Reliance is a faster growing provider service in each
state .every offers and schemes they should show with proper message for benefit
to the customer. In busy life customer do not remembered any offers and which
service we can provided for the customer therefore they should by force showing
advertisement in growing market and among customer .customers wants
continuously exposure in Cable and Local newspapers.

Persuasive Advertising: - Now there is a need of persuasive advertising for


Reliance service which can be moved into the category of “comparative
advertising”. It will help the company to establish the superiority of its brand
service through specific comparison of one or more attributes and features.

Technical Expertise: - The advertisement should show the companies expertise,


experience and pride in market the product service sale.

Media:-A combination of print ads and TV commercial do a better job. Local ads
and publicity should be giving more stress. Hoardings, banners, wall painting
should be promoted, as some expenses are also beard by dealers. Ads on Cable
network result greater audience attention. Schemes, gift offers etc. must be
highlighted through Radio and Local newspapers.

44
A. SALES PROMOTION

Cash discount

Premiums

Appointment of sale promoter

Financial schemes

B. OCCASIONAL DISCOUNT

The company may go for occasional discount offers or price off from time to time
specially during any festival. Off season discount may also prove helpful to check
fluctuating sales.

C. PRODUCT QUALITY AND TECHNICAL FEATURES

As for as some hand set mobile product quality is concerned, there is an urgent
need of technical up gradation of Reliance mobile product line. It would be
beneficial for company to launch some colors mobile hand set with the some added
feature and minimum price.

45
BIBLIOGRAPHY

BOOKS

Marketing Management - Phillip Kotler

Marketing Research - Tull & Hawkins

MAGAZINE

Business Today

Advertising & Management

NEWSPAPERS

Economic Times

Hindustan Times

WEBSITE

www.COAI .in

www.AUSPI .in

The relevant information from the internal source of the organization

46
Questionnaire

1. Whether following things are available?

 Monsoon offer 48%

 Kit 90%

 V-top 40%

 E-Recharge 90%

The survey revealed that 48% retailers have monsoon Offer, 90% have kit, 40% have V-top and
90% have E-recharge.

2. What is the frequency of DSE visit?

 Once a Week 20%


 Twice a Week 50%
 Thrice a Week 30%
 None of above 0 %

The survey revealed that 20% retailers have said that DSE visits once a Week, 50% retailers have
said that DSE visits twice a Week, 30% retailers have said that DSE visits thrice a Week.

3. What availability of stock you keep for sale in


your shop?

 Daily 9%
 weekly 72%
 In 15 days 18%
 Monthly 1%

The survey revealed that 9% retailers keep daily stock, 72% retailers keep Weekly stock, 18%
retailers keep stock of 15 days and 1% retailers keep monthly stock.

47
4. What nature of problem you face with RCOMM?

 Service level 31%


 Claim level 95%
 Product availability 18%
 Product awareness 25%

The survey revealed that 31%, 95%, 18%, 25% retailers have problem with service level claim level,
product availability and product awareness respectively.

5. How much time is taken by the distributor to reimburse your claims?

 20 days 11%
 30 days 25%
 45 days 25%
 60 days 39%

The survey revealed that 11%, 25%, 25%, 39% of the retailers are reimbursed by distributor at claim
level respectively.

6. Who are the major competitors of RCOMM?

 Airtel 55%
 Aircel 15%
 BSNL 15%
 Tata Indicom 30%
 Smart 8%

The survey revealed that Airtel and Tata indicom are the major competitors of
RCOMM.

48
60%

50%

40%

30%
Series1
20%

10%

0%
AirTel BSNL Smart

7. If you have any problem then whom you will prefer to talk?

 Distributor 10%
 TSM 23%
 DSE 67%

The Survey revealed that 10%, 23% and 67% retailers prefer to talk to Distributor,
TSM and DSE.

49
8. How do you know about new scheme?

Companies SMS Poster DSE


Reliance   
Airtel   
AirCel   
smart   
Tata Indicom   

9. How much time do you take to activate a sim?

(i) 10-15 min. 44%


(ii) 15-30 min. 38%
(iii) 30-60 min. 6%
(iv) Above 60 min. 12%
The survey revealed that 44% retailers take 10-15 min., 38% take 15-30 min., 6% take 30-60 min.
and 12% take more than 60 min. in activation of a SIM.

10. From which company distributors you are more satisfied?

(i) Airtel 34%


(ii) Reliance 28%
(iii) BSNL 17%
(iv) AirCel 16%
(v) TATA 4%
(vi) None 1%

50