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CONTENTS

Organizational Certificate

Acknowledgement

Preface

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 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

Field Work

2

Chapter – 4 Data Analysis & Interpretation

Data Interpretation & Finding of customer Survey Market share of mobile subscribers

Chapter – 5 Conclusions

Conclusion Finding

Chapter – 6 Suggestions

Appendices

Bibliography Questionnaire

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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.

Summer Training is an essential part in PGDBM curriculum. It enables the

student to share the real experience in industry. My summer training has placed in

Reliance communication limited for the period of Eight weeks in Pune.

The topic of my project was Business Development, SWOT Analysis and

Sales Promotion of RELIANCE COMMUNICATION in Broadband and Fixed Line

Phone at Reliance Circle office,Pune.

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 .

4

CHAPTER - 1

Introduction

Concept of Reliance communication

History of Cellular Phone in India

An Overview of current Market Scenario

Brief Study of the Organization

Organizational Set-up

5

(1)CONCEPT OF RELIANCE COMMUNICATION

“My vision is to provide the latest telecommunication facilities to every Indian

at the price of a post card” – Dhirubhai Ambani.

Reliance Infocomm was launched as a very ambitious project. The project

was conceived at the convergence of communication and information technology. It

was designed to connect every home and office in India with each other and the

world.

On Thursday, August 09, 2007

Anil Ambani has chosen as “ 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

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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.

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

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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%

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 110,000 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

No. 1 One GSM Network in India according to the Brand equity Survey 2009

India’s Most Trusted Service Brand according to the Brand Equity Survery

2009

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

fiscal, registering a 60% growth. This makes it one of the top five 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 8

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

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 950 mn Indians or more than 5% of the

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global population. It will cover 23,300 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.

(2) History of Telecom Sector and Industry Milestones in India

1992 Telecommunication sector in India liberalized to bridge the gap through

government spending and to provide additional resources for the nation’s

telecom target. Private sector allowed participating.

1993 The Telecom industry gets an annual foreign investment Rs 20.6 million

1994 National Telecom Policy 1994 announced. License for providing cellular

mobile services granted by the government of India for Metropolitan cities of

Delhi, Mumbai, Kolkata and Chennai. Cellular mobile service to be duopoly

(i.e. not more than two cellular mobile operators could be licensed in each

telecom circle), under a fixed license free regime for 10 years.

1995 19 more telecom circles get mobile licenses.

1995 (August)Kolkata became the first metro to have a cellular network

1997 Telecom Regulatory Authority of India and AUSPI is setup.

1998 Annual foreign investment in telecom stands at Rs 17,756.4 million

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1999 FDI inflow into telecom sector falls by almost 90% to Rs 2126.7 million

1999 TRAI issues Telecommunication Interconnection (Charges & Revenue

Sharing) Regulations,

1999 (March) National Telecom Policy is announced

2000 (June) FDI inflow drops further coming down to Rs 918 million

2000 (Jul) Amendment of TRAI act.

2001 Limited Mobility Service Introduced

2002 Tata Teleservices Ltd acquires Hughes Telecom(I) Ltd providing

basic services in Maharashtra circle.

2002 Reliance Infocomm Ltd launches services across 17 circles on a   country

wide basis in a phased manner

2004 Broadband policy announced.

2006 ‘One Nation-One Rupee’ tariff plan introduced by Reliance Infocom

2009 USOF subsidy support to BSNL to provide 8,61,459 wire-line Broadband

connections to individual users and Government Institutions from 27,789

DSLAMs for a period of 5-years.

(2) AN OVERVIEW OF CURRENT MARKET SCENARIO

To give a boost to the growth of the telecom infrastructure, Government decided the

following through NTP 99

Encourage development of telecom facilities in remote and rural areas of the

country

Achieve teledensity of 7% by 2005 & 15% by 2010.

Increase rural teledensity from 0.4% to 4% by 2010.

Provide Internet access to all rural headquarters.

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Provide high speed data to all towns with population more than 2.2 lakhs.

Permission to mobile operators to carry their own traffic.

The telecom regulatory authority was given more power to administer and

monitor progress.

Wireless Subscriber base crosses 400 million mark

Telephony Subscribers (Wireless and Landline): 290.11 million (Feb 2008)

Land Lines: 39.18 million

Cell phones: d2450imillion (Feb 2008)

Yearly Cell phone Addition: 72 million (2007)

Monthly Cell phone Addition: 8.49 million (Feb 2008)

Tele density: 25.31% (Feb 2008)

Projected Tele density: 500 million, 40% of population by 2010

Broadband subscribers reach 6.40 million mark in March 2009

The number of broadband connections in India have seen a continuous growth

since the beginning of 2006. At the end of August 2008, total broadband connections

in the country have reached 4.73 million. However the definition of broadband is

pretty constrained in India compared to other countries. A 256 kbit/s always on

connection is the definition of broadband in India compared to 2 Mbit/s in other

countries. However most ISPs ,especially the Government managed companies are

now offering speeds up to 16 Mbit/s.

BSNL, Sify, MTNL, STPI, Airtel, Netcom, Reliance Communications and

Heathway are some of the major ISPs in India. TRAI has defined broadband as 256

kbit/s or higher. However, many ISPs advertise their service as broadband but don't

offer the suggested speeds. Broadband in India is more expensive as compared to

Western Europe/United Kingdom and United States.

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After economic liberalization in 1992, many private ISPs have entered the

market, many with their own local loop and gateway infrastructures. The telecom

services market is regulated by TRAI. ADSL providers include:

Reliance Infocomm

Tata Communications Ltd. (VSNL)

MTNL/BSNL

Bharti Telecom (Airtel, Bharti Televentures)

Because of the increase in ISPs and the quality of service QoS, It became cheaper

to call India from around the world. Many Indians today, studying or living all around

the world, are using calling cards to India to speak with their families back home. It

used to be much more expensive prior to 2002.

Airtel and BSNL have launched 8 Mbit/s & Reliance Communication offers 10

Mb/s broadband internet services in selected areas recently . For home users , the

maximum speed for unlimited downloads is 1 Mbit/s , available for USD 60 (roughly ,

with taxes) Internet Users: 60,000,000 (September 2007) Source: Internet World

Stats.

Broadband Subscribers: Broadband in India is defined as 256 kbit/s and

above by the government regulator. Total subscribers were 2.3 million (April 2007)

Source: TRAI Internet Users: Number of Internet users in India is the 4th largest in

the world.

Though the number of internet users is high, the penetration level is still lower

than most countries across the globe.

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

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Paper guide& telephoneO

Online guide &online ticket reservationR

Find out a nice movieand buya ticketP

Phone, postcards & picturesEE-mails, attachments, SMS, videos etc.V

Sending a “hello” from vacationB

Board games Gameboy, Playstation etc.( (Interactive) Mobile gamingG

GamingService1

19902 200022009

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.

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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.

(3) BRIEF STUDY OF THE ORGANIZATION

Reliance Communications Limited founded by the late Mr. 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. For more information, visit:

15

Regarded as one of the foremost corporate leaders of contemporary India,

Mr. Anil D Ambani, 49, 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, Mr.

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. Mr. 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

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 Platt’s Global Energy Awards

Conferred 'The Entrepreneur of the Decade Award' by the Bombay

Management Association, October 2002

16

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.

Reliance Communications Ltd. reported 4th quarter 2009 earnings of $6.75

per share on 04/30/2009.

Reliance Communications Ltd. reported annual 2009 earnings of $27.41 per

share on 04/30/2009.

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) PRODUCT OFFERED BY RELIANCE INFOCOMM-

1. Reliance India Mobile

2. Reliance Broadband

3. Reliance Data card and USB modem

4. Reliance India Phone

5. Reliance Data Centre

6. Reliance India cell

We have obtained the No. of Buildings Wired by Reliance Broadband High Speed

Internet at the end of each quarter.

March-07: 488,661

June-07: 593,805

Sept-07: 666,368

Dec-07: 727,229

Mar-08: 787,567

However, the average revenue per broadband line has decreased from Rs

1,932 to Rs 1,760. Bharti Airtel had 794,400 broadband subscribers at the end of

March-08. The ARPU is at Rs 1,137. Bharti Airtel has been able to maintain the

ARPUs, because they upgrade the available broadband speed to the customer and

also try to increase the rates modestly. Even if 25% of the customers like me

upgrade ourselves, they are able to maintain the bottom line.

17

Just, FYI, RCom started with 128 Kbps in Apr-06 at Rs 699 for unlimited data

transfer. Today We are on 1 Mbps unlimited data transfer for Rs 2,222. Dramatic

increase in broadband speed in the past 2 years :-)

Of the current 2.52 million, Bharti Airtel broadband has 0.63 milllion and

Reliance Broadband around 0.7 million. BSNL and Tata indicom/VSNL together are

expected to have another 1 million and leaving the rest to other smaller ISPs. We

Would say mere 20 million by 2010 is not an ambitious target and India needs to

have atleast 50 million broadband subscribers [with speed of atleast 512

Kbps] assuming we will have 500 million phone [Wireless / Wire line] subscribers.

The need of the hour is to take aggressive measures as recommended by

ASSOCHAM and an action like that of Reliance Communications to provide WiMax

broadband in Bangalore and Pune.

TRAI has released the latest figures on Internet and Broadband subscribers in

India. At the end of December 2006 there were 2.05 Million Broadband subscribers.

Last audit in August 2006 pegged the Broadband subscribers at 1.7 Million. In all

India has 8.5 Million internet subscribers.

BSNL is the largest ISP with 44.6% market share followed by MTNL at

19.40%. Dial-up users spend mere 3 Hours a Month surfing the web.

At the end of quarter ending June-2007, India has mere 2.52 million broadband

subscribers [256 Kbps speed, it hasn't changed yet . A QoQ growth of just 8%. If we

grow at this pace [8% QoQ growth] then we will have mere 10.06 million by 2010 half

way through DoT’s Broadband Policy – 2004 target of 20 million broadband

subscribers by 2010. If the QoQ growth is @ 10% then we will have 14.01 million

subscribers by 2010.

18

(5) ORGANIZATIONAL SET UP

Reliance Communication Limited

CHAIRMAN

PRESIDENT PRESIDENT

PRESIDENT

(PRESONAL (ENTERPRISES

(HOME

BUSINESS) BUSINESS)

BUSINESS)

SENIOUR

V.P

V.P

GM

DGM

AGM

SENIOUR

MANAGER

19

MANAGER

DUPTY

MANAGER

ASST.

MANAGER

MANAGEMENT

TRAINING

20

ONE TIME BOOKING CHARGE RS 500/-

Reliance Broadband Plan:-

Monthly Plan

Charges(Rs.)

Download Speed Bundled Usage

(Data Transfer)

Additional

Usage(Rs.)

400 75 Kbps Unlimited -----

750 150 Kbps Unlimited -----

799 300 Kbps Unlimited -----

999 400 Kbps Unlimited -----

1399 600 Kbps Unlimited -----

2199 1 Mbps Unlimited -----

299 2 Mbps 1 GB 0.90p

550 2 Mbps 2.5 GB 0.90p

750 2 Mbps 4 GB 0.90p

999 4 Mbps 4.5 GB 0.90p

1499 4 Mbps 7.5 GB 0.90p

Other Plan:-

Online Speed Select Plan -> Select your speed while you surf.

Night Unlimited Plan -> Unlimited surfing during night hours.

Cross Pooling Plan -> Enjoy Data/Voice Services in a Fixed monthly rental.

Combo Plan -> Pay rental for one service( Data or Voice ) & use another

service on no rental basis. Pay only according to usage for the second

service.

Fixed Landline Phone Tariff Plans:-

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Plan Name Plan

250

Plan

350

Plan

500

Plan 1000 Plan

1500

Plan

2000

ONE

INDIA299

Monthly Plan

Charge (Rs)

250 350 500 1000 1500 2000 299

Free Calls worth

(Rs)

200 300 500 1000 1575 2000 200

Rate per Call

Unit*(Rs/pulse)

1.20 1.20 1.10 1.00 0.90 0.85 1

For Reliance to

Reliance free

within circle

additional

rental charged (

optional plan)

100 100 50 50 50 50 100

22

CHAPTER - 2

Main Studies

Objective

Introduction of the Topic

The problems being faced

What does Company expect to do by solving the

problem

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(1)OBJECTIVE :- How to achieve customer retention and increase the Sales

within the limited territory within the existing potential.

(2)INTRODUCTION OF THE TOPIC:-

Marketing Strategy

Customer Generation - Tapping in to Internal Resources

Employee base of more than 50,000 and a shareholder base of about

3.3 million was the best place to start as far as customers

Every employee was offered 10 connections at a discounted rate.

Dhirubhai Ambani Entrepreneurship Program – A New Way to Market.

Reliance Infocomm fostered a new breed of entrepreneurs, as channel

partners.

Aim of enrolling 200,000 individuals who are committed to acquiring

new customers and creating a new experience for them.

Advertising – Educating Masses and Evoking Passions

The Reliance mobile brand was branded as India Mobile to cash in on

patriotic feelings

The main theme of the first campaign built on the vision of Reliance

Infocomm in bringing the power of telecommunications to every person

This campaign helped to educate people on the importance of

telecommunication services.

The next set of campaigns talked about the innovative product features

which differentiated Reliance Infocomm from its competitors.

The advertisements announced that Reliance IndiaMobile was 'Kabhi

mobile, kabhi computer' (Sometimes Mobile, Sometimes Computer).

In the subsequent campaigns Reliance started riding on movies and

cricket as themes.

Use of Intensive Media Advertising after launching every new and

innovative product.

RWorld – Reliance Way of Putting the World in Your Hands:

24

Another important marketing strategy that Reliance Infocomm used was product differentiation by mixing data applications with voice. Through RWorld – an inbuilt Java enabled data feature of all Reliancephones.

RELIANCE COMMUNICATION LIMITED

(3) PROBLEM BEING FACED

Competitors

Not regular visit of DSE’s and DSA’s and Runner

No Visit of ASM to feasibility study

Not Proper Communication of Customers Complaint to the company

Lack of instant complaint solving due to the lengthy documentation and

entertainment of complaint

25

Strength

Low Price

Network

Connectivity

Flexible plans

Cheap VAS Services

Reputed Brand Name

Weakness

Branding Image

Marketing problem

Limited reach of wire lines.

Slowest Activation Process

Limited Budget for Sales

Promotion

Opportunity

Preference of Flexible wired

plans

IPTV introduction

Rural Telephony

New Market, Vertical, Horizontal

Competitors` Vulnerabilities

Threat

Political destabilization.

New Entrants

IT Development

Market Demand

Seasonality, Weather Effects

New Product development by

competitors

(4) WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE PROBLEM

Customer Satisfaction

Customer Retention

Increase in Sale

Service Excellence

Increase in Revenue by Broadband Department

CHAPTER - 3

26

METHODOLOGIES

Research problem

Research Objective & sub- objective

Information Requirement

Choice of Research Design

Research Instrument used

Schemes, Products & Sample size

Field Work

27

(1) RESEARCH PROBLEM

Collection of Customer Data of other companies –Tata Indicom, Airtel

& BSNL

Sales associates and Sales Executive sometime gives wrong data

Limitation of time and money

(2)RESEARCH OBJECTIVE

To Retain the customer and increase the potential within the limited

territory

To understand the reason of negative churn.

To analyze the current perception of RCom with respect to other

companies.

(3) SUB OBJECTIVE

To know the demand of Rcom Broadband in as the demand of RCom

Broadband declining in the market

To help in development and need of new product

To identify the company position among competitors

To determine those factors which persuade Customers to buy RCOM

broadband products.

To find out which type of schemes customer prefer and why?

(4) INFORMATION REQUIREMENT

Complete Price structure of Rcom, Airtel & Tata Indicom offer which includes:

Installation and Processing Fees

Discount Offered

28

Schemes offered

Service Tax

(5) SOURCES OF INFORMATION

Data collected from the Company

Secondary Data

Internet

Sales Associates

Sales Executives

Other Trainees (Runner)

(6) SCHEMES, PRODUCTS

RELIANCE PRODUCT

Reliance Broad Band

Reliance Fixed Line Phone

Reliance Mobile

Reliance Data Card

Reliance Voucher, E-Recharge

Reliance PCO

(7) FIELD WORK

1. Marketing visiting & Survey (10/5/2009 to 10/6/2009)

2.Approach for new customers (10/6/2009 to 20/7/2009)

29

MARKETING VISITING & SURVEY – 1st June was my first day of summer training

in Reliance communication in Pune. I met to Mr. Tasneem Siddiqui sir. He took my

interview and selects me for summer training. Then he chose my mentor. Mr. Vijay

Ranjan Sir who guides me in summer training. After that I had to do my summer

training under in Vijay sir.

First day I went to the Existing Customer of RCom whose connection were

terminated in recent days. Then I met to the ASM Mr. Vijay Sir and got the all

information about the market and knew that how they work and how increase the

goodwill of R. Communication. They give the regular information about current

scheme & plan. We saw that there were more flexible plans then any other

subscriber in compare to the Reliance Communication.

Time of visiting to Customers I learnt all those thing how to explain in front of

customer about the plan & schemes and main thing I learnt there how to convince for

accepting a big budget schemes. We familiarized with some kinds of problems those

having been Sales Executive and Sales Associates, in his working day with

customers. After finishing all the customers I went again to the main office for

reporting my work to Vijay sir. Along with all work we had to also seen those some

customers which did not keep Reliance Broadband. The main reason through which

they can’t keep the above given facilities is that they were not telling their problem

with us. For removing these problems, there was only one way that they have to tell

us their problem with us through which we can get remove that problem by informing

to the operation and maintenance department. Therefore at last I asked the problem

and they shared with us their problem. Since I was a junior therefore it was my

responsibility to keep all the problems in front of Mr. Vijay sir.

30

It was my marketing visiting for the 40 days which was the great experienced

work for me. In this period I learnt some kinds of idea for increasing the sale,

customer retention and also I got familiarized with those problems which generally

come in the market for selling purpose.

APPROACH FOR CORPORATE OR INSTITUTIONAL CUSTOMER- I went with

Corporate SE’s to the Institutions and Corporate office and met to the HR Managers

and understand the way that how to convince the corporate customer and how to

negotiate with the plan. The plan for corporate customers are flexible and can be

decided according to the need of corporate customer and the type of service they

needed. It’s a good experience for me.

APPROACH FOR NEW RETAIL CUSTOMER – In the second phase of my training I

got the target for 10 new customers in the whole area that comes under in Vijay sir. I

achieved my target within 7 days for the 10 customers new approach I moved all

around the area which comes under in Mr. Vijay sir. I was having the different kinds

of plans and schemes through which I could make the new customers. Area was as

follow:

Pune-Chinchwad Station, MIDC, Bhosari, Phugewadi.

I got my 100% target. It was the good achievement for me and according to

Mr. Vijay sir it was the much appreciated work which was done by me.

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

31

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 and Secondary data

Research Instrument Questionnaire design and Govt. sources

Type of Questionnaire Structured

Population Date 443

Sample Size 100

Sampling Method Judgmental

Contact Method Personal Interview

32

CHAPTER - 4

Data Analysis & Interpretation

Data Interpretation & Finding of customer Survey

Market share of mobile subscribers

33

(1) DATA INTERPRETATION OF CUSTOMER’S SURVEY

Most Influencing factor of consideration while purchasing broad band

No. of Respondent % of people

brand name 10 10

flexibility in tariff plan 40 40

price 30 30

easy availability 5 5

after sale service 10 10

others 5 5

total 100 100

brand name flexibility in tariff plan

price easy avail-ability

after sale service

others

%OF People 10 40 30 5 10 5

3

8

13

18

23

28

33

38

43

Most influencing factor while purchasing broad band

Interpretation- As shown in the graph it was found that 40% people gives

most preferred option to flexibility in plans and 30% people are price conscious,

10% people give preference to after sales service and brand name equally.

34

Satisfaction level in consumer from RCom services

avg. figure Tariff plan priceAfter sales

service

Reliance 9 9 5

Airtel 7 7 8

Tata 8 8 8

BSNL 5 6 6

Reliance Airtel Tata BSNL

value from 0-10 9 7 8 5

0.5

1.5

2.5

3.5

4.5

5.5

6.5

7.5

8.5

9.5

Tariff plan

tariff

pla

n sa

tisfa

ction

leve

l

Interpretation- As shown in the graph it was found that satisfaction level of

customer from Reliance communication towards tariff plan is excellent and then it

isn approx. same for airtel and tata indicom in broadband sector. BSNL has the

least satisfied customer in terms of tarrif plan.

35

Reliance Airtel Tata BSNL

value from 0-10 9 7 8 6

0.5

1.5

2.5

3.5

4.5

5.5

6.5

7.5

8.5

9.5

Price Satisfaction level graph

Interpretation- As shown in the graph it was found that satisfaction level of

customer from Reliance communication towards Pricing is excellent and then it is

approx. same for Airtel and Tata Indicom in broadband sector. BSNL has the least

satisfied customer in terms of pricing.

Reliance Airtel Tata BSNL

value from 0-10 5 8 8 6

0.5

1.5

2.5

3.5

4.5

5.5

6.5

7.5

8.5

After Sale Service satisfaction level graph

after

sal

es s

ervi

ce s

atisf

acti

on le

vel

36

Interpretation- As shown in the graph it was found that satisfaction level of

customer from Reliance communication towards after sales serice is found worst and

then it is approx. same for airtel and tata indicom in broadband sector. BSNL has

the moderate satisfied customer in terms of after sales service.

Reliance broadband is better than any other company

Buyer Behaviour no. of respondant %of people

strongly agree 20 20

agree 38 38

neutral 19 19

disagree 18 18

strongly disagree 5 5

total 100 100

strongly agree agree neutral disagree strongly dis-agree

%of people 20 38 19 18 5

3

8

13

18

23

28

33

38

Reliance broadband is better than any other company

Interpretation – It is found that Buyer readiness state for Reliance Broadband in

which 20% people are strongly agree with reliance broadband and 38% people are

agree and 19% people are neutral. 18% people are disagree and 5% people are

strongly disagree.

37

Problem most suffered by Rcom Customer

no.of respondant%of

people  Service level 40 40  Claim level 15 15  Product availability 20 20  Product awareness 25 25

§ Service level

§ Claim level

§ Product availabil-ity

§ Product aware-ness

% of people 40 15 20 25

3

8

13

18

23

28

33

38

43

Problem most suffered by RCom Customer

Interpretation- The most irritating problem is the poor service level between

customers. 40% customers out of 100 sample data are not satisfied with service.

Then 25% customers are not able to use current new schemes because of the

unawreness about the new products. 20% customer don’t take or retract service

because of feasibility problem and 15% people are annoyed from claim process.

38

Chapter - 5

Conclusions

Conclusion

Finding

Problems

39

Conclusion

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

GDP rate 6-8% 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 MTNL, Virgin 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. The better quality of service 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.

Reliance Netlink Pvt. Ltd. An Anil Ambani Group is very fast catching up with

the market by providing cheaper tariff rates. The market strategies adopted by its

executives are bearing fruits and the company 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.

40

Trainee(my) finding-

Services provided by SE’s and SA’s: -

Satisfaction: -

Most of the Corporate customers i.e. around 56% of respondents are satisfied

with RComm Broadbrand, 20% of them push RCOMM brand to the customer and

rest 24% retailers are not satisfied with RComm brand due to claim pending and the

bandwidth problem. The corporate customer’s complaint don’t get entertained in time

by company as easily as possible properly.

Most of the Retail customers i.e. around 50% are dissatisfied with RCom

Broadband services , around 35% are partially satisfied with RCom Services and

rest shows the averse behavior towards the RCom brand and it is of 15% in terms of

percentage.

Problems: -

Around 25% of the respondents that there is Bandwidth problem with RCom, on the

other hand they found its competitors viz. Airtel, BSNL, TATA indicom network

connectivity of very good level.

Around 40% customers found that RCom first bill of broadband is not comprehensive

to them and they are charging more. But actually it is due to the not proper

communication of payment details and proper mentioning of bills. Hence the retail

customer or intituitional customer don’t pay bill and RCom lose the customer.

Many customers around 50% are get frustrated by its first installation time. The

installation time for Broadband is quite high and its pathetic in comparison to the

other subscribers.

Support from company: -

Most of the customer says that they are not supported by the companies’ personnel

& companies’ helpline.

All companies provide POP at right time and in adequate number.

41

But actually customer said that the Company Personnel doesn’t communicate the

Customer care numbers as well as the relevant authority whom they can cater their

complaint. Hence customer become frustrated with their problem.

Sales Promotion budget-

Reliance Communication believes in aggressive selling but it does not look for sales

promotion and sales executive’s motivation. Hence the frontline management should

be motivated by giving attractive incentive and bonus. It is existing nowadays also

but it is not lucrative.

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.

- Problem handling should be made easy for the customers as the procedure of

handling problem is very lengthy. Hence, customer care should direct forward

the complaint to the maintainance department and get sort out the problem.

- Customer should be recalled after confirmation of maintainace department

that the problem has been resolved or not.

- Sales executives and Sales associates should be motivated perpetually to

increase the sales and they should have been given the particular prospects

to create customers.

- Sales promotion activites for big organization say industries should be opted

for selling broadband and fixed line phones at an attractive prices.

- As the demand for reliance broadband is good hence company should go for

service excellence otherwise competitor will catch up the customers by

service issue of RComm. Hence Customer will shift to other subscribers.

- I have analyzed that the customer complaint is not entertained as they desires

hence customer should be cater and confirmed by telecalling about the

problem and satisfaction.

(1) Promotional Activities

The company expand the budget allocation for promotional campaign for

sales executives and sales associates because these are the people are actually

responsible for actual sales and revenue. It has affected the sale service brand

image of Reliance especially in Pune. Low supports in promotion have lead to

fluctuation in sale. As Pune and other metro cities requires more money for survival

at lower management level. Hence hike in salary or some motivational incentives

should be given to SE’s and SA’s.44

(2)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.

(3) 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.

(4)Technical Expertise:-

The advertisement should show the companies expertise, experience and

pride in market the product service sale.

(5) 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. Ads on Cable network result greater audience attention. Schemes, gift

offers etc. must be highlighted through Radio and Local newspapers. BSNL and

aircel are the best user of Media Services.

45

(6) Sales Promotion -

Cash discount

Premiums

Appointment of sale promoter

Financial schemes

(7)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.

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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.trai.co.in

www.AUSPI .in

The relevant information from the internal source of the organization.

47

Questionnaire

1. Most Influencing factor of consideration while purchasing broad band?

brand name

flexibility in tariff plan

easy availability

after sale service

others

2. Can You evaluate Brand on the Basis of Best Flexible Tariff Plan?

Airtel Reliance Tata BSNL

3. Can You evaluate Brand on the Basis of Best Pricing?

TATA Airtel Reliance BSNL

4. Can You evaluate Brand on the Basis of Best After Sales Service?

TATA Reliance Airtel BSNL

4. What is the nature of problem you face with the Most with RCom?

Service level

Claim level

Product availability

Product awareness

5. Is the Reliance Broadband better than any other company?

48

Strongly Agree

Agreee

Neither Agree Nor Disagree

Disagree

Strongly Disagree

6. Are you aware about new scheme of RCom?

Yes

No

7. If no, why are you not aware about scheme ? Because of

Inadequate advertising

Communication from SA’s

Unawareness about new products

Other Reason_________.

49