Relince Report

8/8/2019 Relince Report

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CONTENT

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 theproblem

Chapter 3 Methodologies

Research problemResearch Objective & sub- objectiveInformation RequirementChoice of Research DesignResearch 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

FindingChapter 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.

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

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A DREAM COME TRUE :

The Late Dhirubhai Ambani dreamt of a digital India an India where the common man would have

access to affordable means of information and communication. Dhirubhai, who single-handedly built Indias

largest private sector company virtually from scratch, had stated as early as 1999: Make the tools of

information and communication available to people at an affordable cost. They will overcome the handicaps

of illiteracy and lack of mobility.

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 Dhirubhais 70th birthday, though sadly after his unexpected

demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) 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 revolutionising the way India communicates and networks, truly

bringing about a new way of life.

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INDIA S LEADING INTEGRATED TELECOM

COMPANY :

Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of

companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is Indias leading

integrated telecommunication company with over 80 million customers.

Our business encompasses a complete range of telecom services covering mobile and fixed line telephony.

It includes broadband, national and international long distance services and data services along with an

exhaustive range of value-added services and applications. Our constant endeavour is to achieve customer

delight by enhancing the productivity of the enterprises and individuals we serve.

Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the

joyous occasion of the late Dhirubhai Ambanis 70th birthday, was among the initial initiatives of Reliance

Communications. It marked the auspicious beginning of Dhirubhais dream of ushering in a digital

revolution in India. Today, we can proudly claim that we were instrumental in harnessing the true power of

information and communication, by bestowing it in the hands of the common man at affordable rates.

We endeavour to further extend our efforts beyond the traditional value chain by developing and deploying

complete telecom solutions for the entire spectrum of society.

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LOOKING BACK, LOOKING FORWARD :

Reliance Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubhai H

Ambani (1932-2002), ranks among Indias top three private sector business houses in terms of net worth.

The group has business interests that range from telecommunications (Reliance Communications Limited)

to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance

Infrastructure Limited).

Reliance ADA Groups flagship company, Reliance Communications, is India's largest private sector

information and communications company, with over 80 million subscribers. It has established a pan-India,

high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to

offer services spanning the entire infocomm value chain.

Other major group companies Reliance Capital and Reliance Infrastructure are widely acknowledged

as the market leaders in their respective areas of operation.

ABOUT SH. DHIRUBHAI AMBANI

Few men in history have made as dramatic a contribution to their countrys economic fortunes as did the

founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring

and timeless.

As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai:

The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of

Indias capital markets, the champion of shareholder interest.

But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he

built, starting from the proverbial scratch, Indias largest private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs

14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore

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colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian

private company to do so.

Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile

Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite

investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the

unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in

exchange for their trust, substantial return on their investments. It was to be the start of one of great stories

of mutual respect and reciprocal gain in the Indian markets.

Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories

in corporate history anywhere in the world, and went on to become Indias largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder

uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance

stock, and creating one of the worlds largest shareholder families.

CHAIRMAN'S PROFILE

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 limited.

He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and

Communication Technology, Gandhi Nagar, Gujarat.

Till recently, he also held the post of Vice Chairman and Managing Director of Reliance Industries Limited

(RIL), Indias largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every

aspect of the companys management over the next 22 years.

He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital

markets. He spearheaded the countrys first forays into the overseas capital markets with international

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public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance

Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the

company in January 1997.

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CHAPTER 1

INTRODUCTION

Concept of Reliance communicationAn Overview of current Market Scenario

Brief Study of the OrganizationOrganizational Set-up


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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 selectjournalists 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 hispersonal 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 Communications 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.

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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 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.

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"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 ofinorganic opportunities in select international markets to further expand our footprint," Ambani said.

Reliance Communications 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 23,000towns 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.

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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.

AN OVERVIEW OF CURRENT MARKETSCENARIO:

Reliance Communications (formerly Reliance Communications Ventures) is one of India's largestproviders of integrated communications services. The company has more than 20 million customersand serves individual consumers, enterprises, and carriers, providing wireless, wireline, long

distance, voice, data, and internet communications services through a number of operatingsubsidiaries. The company sells communications and digital entertainment products and servicesthrough its chain of Reliance Web World retail outlets. The company's Reliance Infocommsubsidiary provides wireless communications services throughout India. Reliance Communicationsis part of the Reliance - Anil Dhirubhai Ambani Group.

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

It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) startedlaying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was

commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th birthday, thoughsadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and wire line) andconvergent (voice, data and video) digital network. It is capable of delivering a range of servicesspanning the entire infocomm (information and communication) value chain, includinginfrastructure 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-edgeinformation and communication services affordable to all individual consumers and businesses inIndia.

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'sknowledge workers to deliver their services globally.

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BRIEF STUDY OF THE ORGANIZATION:

Chairmans profile

Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani (1932-2002) is theflagship company of the Reliance Anil Dhirubhai Ambani Group. It is India's foremost trulyintegrated telecommunications service provider. With a customer base of over 36 million includingclose to one million individual overseas retail customers, Reliance Communications ranks among thetop ten Asian Telecom companies. Its corporate clientele includes 600 Indian, 250 multinationalcorporations 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 cablesystems 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, RelianceCommunications, Reliance Capital, Reliance Energy and Reliance Natural Resources.

He is also the president of the Dhirubhai Ambani Institute of Information and CommunicationsTechnology, Gandhinagar

An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is credited withpioneering several financial innovations in the Indian capital markets. He spearheaded the countrysfirst forays into overseas capital markets with international public offerings of global depositaryreceipts, convertibles and bonds.

Under his chairmanship, the constituent companies of the Reliance ADA group have raised nearlyUS$ 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 andabroad.

He is currently a member of:

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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

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, December2006

Voted the Best role model among business leaders in the biannual Mood of the Nation pollconducted 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' andwas introduced as the only 'new hero' in Business and Finance from India, June 1999.

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ORGANIZATIONAL SET UP:

Reliance Communication Limited

CHAIRMAN

PRESIDENT PRESIDENT PRESIDENT

(PRESONAL (ENTERPRISES (HOME

BUSINESS) BUSINESS) BUSINESS)

SENIOURV.P

V.P

GM

DGM

AGM

SENIOUR

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MANAGER

MANAGER

DUPTYMANAGER

ASST.

MANAGER

MANAGEMENTTRAINING

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CHAPTER 2

MAIN STUDIES

Introduction of the TopicApply six sigma

The problems being facedWhat does Company expect to do by solving the

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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 itis 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).

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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 strategicplanning 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.

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

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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

RELIANCE COMMUNICATION LIMITED

Strength

Low Entry Cost

Commission Structure

Fast Activation Process

Network

Connectivity

Data GPRS

Weakness

Branding Image

Distribution problem

Limited product portfolio- Only Mobile

Lack of Competitive Strength

Limited Budget

Opportunity

Preference of GSM over CDMA

New Specialist Application

Rural Telephony

New Market, Vertical, Horizontal

Competitors` Vulnerabilities

Threat

Political destabilization.

New Entrants

IT Development

Market Demand

Seasonality, Weather Effects

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APPLY SIX SIGMA:

[Fishbone diagram]

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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 doesnt get claim at proper time

No visit of TSM or any other person to the retailers shop

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WHAT DOES COMPANY EXPECT TO DO BY

SOLVING THE PROBLEM:

Customer Satisfaction

Retailer Satisfaction

Increase in Sale

Sales Promotion

Proper Distribution Channel

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CHAPTER 3

METHODOLOGIES

Research problemResearch Objective & sub- objective

Information RequirementChoice of Research DesignResearch Instrument used

Schemes, Products & Sample size


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RESEARCH PROBLEM

Collection of Data of othercompanies Tata indicom, Airtel & BSNL

Retailers some time gives wrong data

Limitation of time and money

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

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

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INFORMATION REQUAREMENT:

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

Sim Processing Fees

Discount Offered

Schemes offered

Service Tax

SOURCES OF INFORMATION:

Data collected from the Company

Secondary Data

Internet

Retailers

Distributor

Sales Executives

Other Trainees (Runner)

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SCHEMES, PRODUCTS:

RELIANCE PRODUCT

Reliance Base Phone

Reliance Mobile

Reliance Data Card

Reliance Voucher, E-Recharge

Reliance PCO

Reliance Broad Band

STD CALLING CARD

MRP TALKTIME VALIDIY ON-NET(NIGHT) OTHER

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

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PRODUCTS FOR THE MONTH OF JULY 2008

TOP UPs

Rs. 55Rs. 77Rs. 210Rs. 310Rs. 510

FULL T.T of 55 (off net 43+on net 12)FULL T.T of 77(off net)TALK TIME of Rs. 222 (off net)TALK TIME of Rs. 333 (off net)TALK TIME of Rs. 555 (off net)

STVs

Rs. 195Rs. 496Rs. 35Rs. 79Rs. 49Rs. 99Rs. 98

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

RCVsRs. 250

Rs. 888

FREEDOM TARIFF, TALKTIME Rs. 147.5 AND VALIDITY 30 DAYS

F.T, TALKTIME RS. 888 AND VALI. OF 8 MONTHS

UNLIMITED

Rs. 399

Rs. 499

Rs. 533

Talk Time 175/ & Local On-net Unlimited FREE ( 30 days)

Local Reliance Mobile & Reliance Smart Unlimited FREE ( 30 days)

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

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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/-

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

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Sampling Unit- Retailer

Sampling Method- Judgmental

Contact Method- Personal Interview

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CHAPTER 4

DATA ANALYSIS & INTERPRETATION

Data Interpretation & Finding of customer SurveyMarket share of mobile subscribers

Performance Snapshot


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DATA INTERPRETATION OF CUSTOMERSSURVEY:

Age group Tabulating in percentage the age group of customers

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.

Age Group Percentage (%)

18-25 25

28-35 47

36-45 22

Above 45 6

30

0

5

10

15

20

25

30

35

40

45

50

Percentage (%)

18-25

28-35

36-45

Above 45


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Income Level Tabulation

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

Income Group Percentage (%)

8000 42

8000-12000 34

12000-20000 18

> 20000 6

31

0

5

10

15

20

25

30

35

40

45

Percentage (%)


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Percentages of customer who are prospective take of a particular service

company Percentage (%)

AirTel 40

RIM 5

BSNL 25

IDEA 2

Vodafone 31

Virgin 2

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

Scaling About RCOMM Service

scale Percentage

Very good 20

Good 25

Satisfactory 40

Poor 10

Cant say 5

The survey revealed that 40% of the respondents service RIM as satisfactory. This is a tellingcomment. However the survey also found out that 20% and 25% of the respondents service RIM as

33

0

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10

15

20

25

30

35

40

Pe r cen t a

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very good and good respectively. There were 5% of the respondents who had nothing to say aboutthe RIM. This is due to low service awareness and low penetration level.

MARKET SHARE OF MOBILE SUBSCRIBERS:

14.89

9.65

4.54

2.513.26 2.7 2.25

20.4521.5

18.06

0

5

10

15

20

25HUTCH

IDEA

BPL

SPICE

AIRCEL

TATA

MTNL

RELIAN

BHARTI

MARKET SHARE OF CDMA IN KARNATKA

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RC

TAT

RCOMM 70%

TATA INDICOM 30%

MARKET SHARE OF GSM IN BANGALORE

35

70%

30%


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AIRTEL 40%

RCOMM 5%

BSNL 25%

VODAFONE 31%

TATA INDICOM 2%

IDEA 2%

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PERFORMANCE SNAPSHOT37


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Particulars Units

12 months period ended Quarter ended

March-

2007

March-

2008

June 30, 2008 Sept. 30, 2008

Total SubscribersCDMAGSM

Consolidated

financials

RevenueEBITDACash profit from Opera.PBITNet Profit

Total Fixed AssetsShareholders' Equity

Net Debt

Key Ratios

EBITDA MarginNet Profit MarginReturn on Net worthNet Debt to fundedequity- ratio

KPIs

Wireless APRU

Wireless RPMWireless MoU per subLong Distance Minutes

000s000s000s

Rs. mnRs. mnRs. mnRs. mnRs. mn

Rs. mnRs. mnRs. mn

%%%

Times

Rs.

Rs.Min/monthMn Min

28,00724,6203,387

144,68357,20756,29132,24731,632

330,423202,71918,238

39.5%21.9%26.8%

0.09

371

0.7450323,238

45,79438,7787,016

190,67881,99182,06470,76254,011

523,126254,60999,700

43.0%28.3%33.7%

0.39

340

0.7446030,045

50,77342,7078,066

53,22222,50224,39615,56415,123

580,324264,197129,888

42.3%28.4%34.6%

0.49

282

0.664248,367

56,04646,8409,206

56,45023,01625,28815,54115,308

614,761281,598152,257

40.8%27.1%31.8%

0.54

271

0.644239,802

*APRU- Average revenue per user

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39

CHAPTER 5

CONCLUSION, FINDINGS &SUGGESIONS


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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 isassumed 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.

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Retailers Finding :

Services provided by Retailers: -

All the retailers are dealing in all services i.e. providing Recharge Voucher, SIM, and TariffVoucher 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% ofthem 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 dont 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 goodlevel.

Around 16% retailers which are under puja enterprises distributor projected problem with

distributors. They dont get schemes communicated in time by distributor and distributor does notprovide 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 60-90days, 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.

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SUGESSION:

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

1. PROMOTIONAL ACTIVITIES

The company expands the budget allocation for promotional campaign in center Bangalore. Ithas affected the sale service brand image of Reliance especially in Bangalore. Low supports inpromotion 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 beenfound in recent ads. Reliance is a faster growing provider service in each state .every offers andschemes they should show with proper message for benefit to the customer. In busy life customerdo not remembered any offers and which service we can provided for the customer thereforethey should by force showing advertisement in growing market and among customer .customerswants continuously exposure in Cable and Local newspapers.

Persuasive Advertising: - Now there is a need of persuasive advertising for Reliance servicewhich can be moved into the category of comparative advertising. It will help the company toestablish the superiority of its brand service through specific comparison of one or moreattributes and features.

Technical Expertise: - The advertisement should show the companies expertise, experience andpride in market the product service sale.

Media:-A combination of print ads and TV commercial do a better job. Local ads and publicityshould be giving more stress. Hoardings, banners, wall painting should be promoted, as someexpenses 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.

A. SALES PROMOTION

Cash discount

Premiums

Appointment of sale promoter

Financial schemes

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B. OCCASIONAL DISCOUNT

The company may go for occasional discount offers or price off from time to time speciallyduring 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 technicalup gradation of Reliance mobile product line. It would be beneficial for company to launch somecolors mobile hand set with the some added feature and minimum price.

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44

CHAPTER 6

APPENDICES

BibliographyQuestionnaire


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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.AUSPI .in

The relevant information from the internal source of the organization

45
http://www.coai/http://www.auspi/http://www.coai/http://www.auspi/


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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 and90% 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% retailershave 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 inyour 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.

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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 claimlevel 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.

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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.

8. How do you know about new scheme?

Companies SMS Poster DSE

Reliance

Airtel

AirCel

smart

Tata Indicom

48

0%

10%

20%

30%

40%

50%

60%

AirTel BSNL Smart

Seri


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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%

Documents

Relince Report