SIP report,Shamim Akhtar

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    EXECUTIVE SUMMARY

    Introduction to the problem

    Bhubaneswar, one of the fastest developing IT and educational hub in India, a tier-2 city and

    a city with immense potential for aggressive expansions in various sectors and one of the

    sectors which has a very huge growth potential is telecom .Telecom is a booming sector in a

    developing country like ours but it is still lagging behind with respect with most of the other

    developing countries like china, Russia, brazil etc. In Internet penetration India is ranked

    142nd

    all over the world which clearly signifies how much we have to catch up with the rest

    of the world and this also indicates the scope of development in this sector.

    Reliance jio infocomm limited a subsidiary of RIL (Reliance Industries Limited) headed by

    Mr. Mukesh Ambani has understood the market potential and hence started the Dream project

    named Reliance jio which is going to provide 4G services in India in the coming years. India

    is still adapting itself to 3G services which actually is almost outdated with respect to the rest

    of the world. Lot of countries has seen 4G revolution and in India even 3G is not that widely

    accepted. Even recently international 5G standards have been set which clearly shows how

    far we are lagging behind.

    Now, talking about RJIL, the company has invested 70,000 crores in the project and in the

    spectrum auction has bought 2.3 GHz and 1.8 GHz spectrum for 4G services across India, the

    company holds unified Pan India license to launch 4G pan India, being the first company to

    get one.

    Now, one of the major cities in which the company is going to invest is Bhubaneswar,

    already 2 Jio centers has been established in Bhubaneswar (one in jayadev vihar and other in

    Master canteen) ,these Jio centers will handle all the operations in the city and the Jio centers

    has been demarcated based on population, already optical fiber is being placed all around the

    city and base stations has also been placed at numerous locations in the city.

    Now, before the launch of 4G services in the city, the company is investing a lot in

    understanding the current market scenario ,the perception about 4G in the mind of consumers

    and retailers, the current state of service providers in 3G, what are the room for improvement

    before the launch. These activities are necessary before they design the marketing activities in

    the city.

    Research Methodology adopted

    I designed my problem based on it and I tried to understand the current state of 3G services in

    Bhubaneswar, What is the acceptance level of 3G services among consumers? What are their

    complains? What are retailers take on the 3G services in Bhubaneswar? What is the

    perception about 4G? Willingness to provide 4G services etc.

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    I started by doing an retail mapping in which I asked the retailers about their opinions and

    their expectations about the state of 3G services based on which I designed my own research

    , which began by a questionnaire design based on the variables identified which namely are:

    (a) Awareness about Reliance 4G (RJIL)

    (b) Network on Demand

    (c) Satisfactions from plans and offers in 3G

    (d) Demand for 3G SIM activation

    (e) Company which sells the highest volume of 3G recharge

    (f) Recharge on Demand

    (g) Distribution network of reliance

    (h) Willingness to provide 4G

    (i) Satisfaction on the margin gained by selling 3G

    (j) Complaints regarding 3G services from customers

    The sample size is took is n=160 and the samples has been collected from various parts of

    Bhubaneswar in similar proportions viz western Bhubaneswar, northern Bhubaneswar,

    central Bhubaneswar and outskirts of Bhubaneswar.

    Major findings

    After a detailed frequency analysis using pie charts and bar diagrams and application of

    statistical tool on SPSS (two step cluster analysis) I tried to find homogeneity between the

    responses as well as heterogeneity, the analysis gave me a overall picture of the market in

    Bhubaneswar where 3G is in the path of adoption and demand in the market for 3G has

    increased exponentially, Aircel is doing a hefty business in 3G as far as Bhubaneswar is

    concerned and is currently the market leader, followed by Airtel which is an all-round player

    in the overall market concerning both 2G and 3G .

    There is awareness about 4G(RJIL) in the market but retailers are very insure about the kind

    of services that they are going to provide as there are a lot of consumer complaints on 3G

    mostly comprising of network failure and poor signal quality (approx 90% complaints).

    Other findings from the study is that retailers are still confusing Reliance 3G launched by

    RCOM with Reliance 4G going to be launched by RJIL and they have benchmarked 4G

    services of reliance based on Reliance 3G when actually they are both from different groups

    of Reliance. This perception needs to be changed and steps have to be taken through a strong

    marketing campaign.

    The limitations of my study is that there are more than 10,000 retail outlets in and around

    Bhubaneswar city, and my study is only based on 10% of the entire retailer base of the city

    mainly due to lack of time .Therefore I cannot guarantee that the inferences are accurate but it

    does give a overview of the entire market.

    Conclusions from the study

    From the study it is clear that Aircel is doing a booming business in 3G as far as

    Bhubaneswar is concerned

    Airtel also is regarded high

    Reliance 3G is widely recognized but they are eating up their own consumer base

    ,majorly due to poor network which had lead to dissatisfaction among consumers

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    3G is very much in demand now in Bhubaneswar and there has been an increase in

    consumers seeking 3G connections

    Retailers are mostly aware of the 4G network that is going to be launched in

    Bhubaneswar by RJIL and are speculating about it

    Retailers expect a more reliable network with the introduction of 4G with lesser

    consumer complaints

    Recommendations

    Majority of retailers confuses RJIL to be same with RCOM (Reliance

    Communications) headed by Anil Ambani group , so its the responsibility of the

    company to clarify the confusion through their marketing campaign

    A decent proportion of the retailers have a negative impression about Reliance(RJIL)

    4G just because they confuses it with RCOM 3G which is recently facing lot of

    consumer complaints due to slow connectivity which needs to be corrected

    Distribution network of reliance is also proving to be very dissatisfactory for the

    retailers which need to be taken care of by the company.

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    1. INTRODUCTION TO THE COMPANY

    "I am confident that Jio will play a significant role in lifting India from its current 142nd rank on

    Internet penetration to among the top 10 nations in the world,"-Mukesh Ambani, Owner RJIL

    Reliance Jio infocomm limited (RJIL) is a subsidiary of Reliance industries limited (RIL)

    which is headed by world renowned businessman and billionaire, Mr.Mukesh Ambani. It was

    formerly known as Infotel Broadband services limited by changed its name to Reliance Jio

    infocomm limited in January 2013.The Company is Mumbai based and it was incorporated in

    January 2007.

    Reliance jio will provide broadband services to customers using WI-max as access

    technology across India. RJIL will be the first telecom company to launch 4G pan India.

    RIL reentered the telecom sector in 2010 by buying the only company that had won pan India

    4G spectrum in an auction. The telecom company has still been unable to commercially

    launch its 4G services primarily due to the technology standards that it has adopted, TDE-

    LTE is still being developed globally. The company is in the penultimate stage of launching

    its services commercially. The company started offering its beta version of services in the 1st

    week of March, 2015. In the beta phase company offers its services in its entirety but only to

    a close group, which includes all the stake holders (Employees and Vendors) .It completed

    the alpha phase of 4G services by the end of February, 2015 During this period the company

    has completed Test schedule and test procedure (TSTP) for 4G technology in 19-20 circles

    where it demonstrated speeds of 29 to 40 Mbps.

    In the beta phase of testing Jio is not only testing the voice and data services but also testing

    the various applications like Jio drive which is similar to Apple face time where people can

    make video calls. RJIL has been focusing on various apps be it magazine, movie store, music

    store, games and other entertainment stores.

    Reliance jio has invested an estimated total of 70,000 crores in this project and rumors are

    that they are going to invest 50,000 crores more in the project and the 4G network will cover

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    over 90% of the urban India and approximately 215,000 villages in India. In order to provide

    4G coverage Pan India, the company is planning to commission more than 100,000 base

    stations by the end of 2015.

    In order to provide better services to its customers, the company is planning to automate 4G

    services by launching a customer portal where prosp