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CHAPTER -1 INTRODUCTION 1.1 INDUSTRY PROFILE Telecommunication is the assisted transmission of signals over a distance for the purpose of communication. Major factors responsible for the growth of telecommunications industry are use of modern technology and market competition. One of the products of modern technologies is optical fibers, which are being used as a medium of data transmission instead of using coaxial or twisted pair cables. Optical fibers can carry a high volume of data and are easier to maintain and install. Use of communication satellites makes this telecommunications industry a booming industry. Telecommunications industry is going to be a digitized one. Use of ISDN (Inter Services Digital Network) makes this telecommunication industry a total digitalized system and eventually enhanced the speed and quality of digital communication The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. Starting from telegraphic and telephonic systems in 1

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CHAPTER -1

INTRODUCTION

1.1 INDUSTRY PROFILE

Telecommunication is the assisted transmission of signals over a distance for the purpose

of communication. Major factors responsible for the growth of telecommunications

industry are use of modern technology and market competition. One of the products of

modern technologies is optical fibers, which are being used as a medium of data

transmission instead of using coaxial or twisted pair cables. Optical fibers can carry a

high volume of data and are easier to maintain and install. Use of communication

satellites makes this telecommunications industry a booming industry.

Telecommunications industry is going to be a digitized one. Use of ISDN (Inter Services

Digital Network) makes this telecommunication industry a total digitalized system and

eventually enhanced the speed and quality of digital communication

The telecom industry is one of the fastest growing industries in India. India has nearly

200 million telephone lines making it the third largest network in the world after China

and USA. With a growth rate of 45%, Indian telecom industry has the highest growth

rate in the world. Starting from telegraphic and telephonic systems in the 19th century,

the field of telephonic communication has now expanded to make use of advanced

technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile

phones. Day by day, both the public players and the private players are putting in their

resources and efforts to improve the telecommunication technology so as to give the

maximum to their customers.

-  Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by

the growth in demand in countries like India and China.

-  India‘s mobile phone subscriber base is growing at a rate of 82.2%. 

-  China is the biggest market in Asia Pacific with a subscriber base of 48% of the total 

   subscribers in Asia Pacific. Compared to that India’s share in Asia Pacific Mobile

Phone market is 6.4%.

Though the telecom sector in India has experienced a faster rate of growth, still it

suffers from the problem of complex tax structure. Presently the sector suffers from the

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problem of 12% service tax, 6-10% license fee, 2-6 % spectrum charges, 1.5% asset

deficit charges, and 2% education cess.

A single tax system should be introduced for making the tax system investor friendly.

HISTORY

India is the fourth largest telecom market in Asia after China, Japan and South Korea.

The Indian telecom network is the eighth largest in the world and the second largest

among emerging economies.

The industry has witnessed an explosive growth in recent years. Teledensity has more

than doubled from 2.3 per cent in 1999 to 4.8 per cent in 2002. However, the world

average is almost 7.5 times and the Asian average 4.5 times the Indian average. The

Indian telecom market size of over US $ 8 billion is expected to increase three fold by

2012.

The expansion of the telecom industry in India has been fuelled by a massive growth in

mobile phone users, which has reached a level of 10 million users in December 2002, an

increase of nearly 100 per cent in 2002. This exponential growth of mobile telephony can

be attributed to the introduction of digital cellular technology and decrease in tariffs due

to competitive pressures.

For the first time in India, the growth of cellular subscriber base has exceeded the

fixed line subscriber base. However, cellular penetration is still 1 per cent as compared

to world average of around 16 per cent. Cellular subscriber base is projected to grow at

a CAGR (Compounded Annual Growth Rate) of 48 per cent to exceed 45 million in

2007 and at 30 per cent to 88 million in 2012.

History of Indian Telecommunications started in 1851 when the first operational land

lines were laid by the government near Calcutta (seat of British power). Telephone

services were introduced in India in 1881. In 1883 telephone services were merged with

the postal system. Indian

Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947,

all the foreign telecommunication companies were nationalized to form the Posts,

Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of

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Communications. Telecom sector was considered as a strategic service and the

government considered it best to bring under state's Control.

The first wind of reforms in telecommunications sector began to flow in 1980s

when the private sector was allowed in telecommunications equipment

manufacturing. In 1985, Department of Telecommunications (DOT) was established.

It was an exclusive provider of domestic and long-distance service that would be its

own regulator (separate from the postal system). In 1986, two wholly government-

owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for

international telecommunications and Mahanagar Telephone Nigam Limited (MTNL)

for services in metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the

economy. Also, examples of telecom revolution in many other countries, which resulted

in better quality of service and lower tariffs, led Indian policy makers to initiate a

change process finally resulting in opening up of telecom services sector for the private

sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was

formed to act as a regulator to facilitate the growth of the telecom sector. New National

Telecom Policy was adopted in 1999 and cellular services were also launched in the

same year.

Telecommunication sector in India can be divided into two segments: Fixed Service

Provider (FSPs), and Cellular Services. Fixed line services consist of basic services,

national or domestic long distance and international long distance services. The state

operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic

services. Private sector services are presently available in selective urban areas, and

collectively account for less than 5 per cent of subscriptions. However, private services

focus on the business/corporate sector, and offer reliable, high- end services, such as

leased lines, ISDN, closed user group and videoconferencing.

Cellular services can be further divided into two categories: Global System for Mobile

Communications (GSM) and Code Division Multiple Access (CDMA). The GSM

sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the CDMA

sector is dominated by Reliance and Tata Indicom.

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MAJOR SERVICE PROVIDERS IN INDIA.

Two different technologies are deployed by the mobile operators in India namely GSM

and CDMA.The GSM service providers are Bharthi, BSNL, Hutch, IDEA, Aircel,

Reliance, Spice, MTNL and BPL, whereas the CDMA service providers are TATA, and

Reliance.

Market Share of the Telecom Company in India

GROWTH AND DEVELOPMENT OF THE INDUSTRY

Telecommunications is a mature industry that has been globally available for some time.

Growth of subscribers, traffic, and most importantly revenues, is by no means automatic.

Entry costs for new users and tariffs must be continuously reduced to increase subscriber

numbers and minutes of use. Infrastructure solutions that deliver lower cost coverage and

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more efficient capacity are critical to drive up service volumes and revenues.

Competition is often already intense amongst the established player.

Additionally, there is a steady stream of new operators and service providers who

build up their service capabilities with the latest technology, hoping to create a major

competitive advantage. Business Growth, Cost Efficiency and Evolution are therefore

regarded as key drivers which can be addressed with wireless technology. The

penetration of wireless services in developing regions and the ability to achieve

reasonable speeds for wireless data has resulted in continued wireless services

penetration and revenue growth, often at the expense of wireline services.

The overall telecommunication services market is expected to grow profoundly in

the coming years lead by wireless and high speed Internet services. Opening up of

international and domestic long distance telephony services are the major growth drivers

for cellular industry

PRESENT STATUS OF THE INDUSTRY:

Both fixed line and mobile segments serve the basic needs of local calls, long

distance calls and the international calls, with the provision of broadband services in the

fixed line segment and GPRS in the mobile arena. Mobile phone providers have also

come up with GPRS-enabled multimedia messaging, Internet surfing, and mobile-

commerce. The much-awaited 3G mobile technology is soon going to enter the Indian

telecom market. The GSM, CDMA, WLL service providers are all upgrading

themselves to provide3G mobile services.

The value added services provided by the mobile service operators contribute

more than 10% of the total revenue. Bharti Airtel has the largest customer base with

31% market share, followed by Hutch and BSNL with each holding 22% market share.

The 2007 budget has brought further relief to the customers with the reduction in the

tariffs, both local and long distance, and with slashing down the roaming rentals.

This is likely to lead to even more people going for cellular services and more and

more use of the value added services. However, landline telephony is likely to remain

popular, too, in the foreseeable future. MTNL, the largest landline service provider, has

recently taken some bold initiatives to retain its market share and, if possible, expand it.

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The reduction in tariffs for airtime, national long distance, international long distance,

and handset prices has driven demand.

FUTURE OF THE INDUSTRY:

India initially started with GSM technology for mobile communication. Being a

technology neutral country, India later allowed for CDMA technology also. Now 2.75G

EDGE technologies has been implemented and used. BSNL has got license for bringing

3G into operation. Trials are being conducted for 3G implementation in the four

metropolitan cities of India. Commercial 3G will be started by March 2007.

With the dwindling revenues of the operators from the data and voice there is a

need to look at newer applications to fuel growth of the telcos. TV on Mobile has

emerged as a solid and potent answer to this consumer yearning. South Korea, China,

South Africa, Australia and Europe have seen this need and have acted upon the same by

implementing TV on Mobile. India is around the corner for implementation of similar

technology for the benefit of consumers.

1.2 COMPANY PROFILE

ORIGIN OF THE ORGANIZATION:

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 India’s 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.”

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.

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Today, Reliance Communications is revolutionising the way India communicates and

networks, truly bringing about a new way of life.

INDIA’S LEADING 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 India’s leading integrated telecommunication company with over 60

million customers.

The 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 endeavor is to achieve customer delight by enhancing the

productivity of the enterprises and individuals.

RCOM is India’s largest integrated and fully converged communications service provider

in the private sector, and has been rated among “Asia’s Top 5 Most Valuable Telecom

Companies”.

RCOM has a retail customer base of over 48 million as on 30th April, 2008 including

over 1.5 million individual overseas retail customers. The corporate clientele includes

2,100 Indian and multinational corporations, and over 800 global, regional and domestic

carriers.

RCOM has established a pan-India, next generation, integrated (wireless and wireline),

convergent (voice, data and video) digital network that is capable of supporting best-of-

class services spanning the entire communications value chain, covering over 20,000

towns and 450,000 villages, and growing.

RCOM owns and operates the world’s largest next generation IP enabled connectivity

infrastructure, comprising over 175,000 kilometers of fiber optic cable systems in India,

USA, Europe, Middle East and the Asia Pacific region

VISION:

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

leading-edge information and communication services affordable to all individual

consumer and business in India.

We will offer unparalleled value to create customer delighted and enhance business

productivity.

We will also generate value of our capabilities beyond Indian borders and enable millions

of Indians knowledge workers to deliver their services globally.”

VALUES

We will put customer first at all times, and built long term relationship with them.

We shall believe interpretation and keep every commitment that we make.

We will operate with honesty and integrity interpretation all our dealings.

We treat every individual with dignity and respect.

We will approach every endeavor with zeal & an attitude towards excellence.

MISSION

To attain global best practices and become a world-class communication service

provider – guided by its purpose to move towards greater degree of sophistication

and maturity.

To work with vigour, dedication and innovation to achieve excellence in service,

quality, reliability, safety and customer care as the ultimate goal.

To earn the trust and confidence of all stakeholders, exceeding their expectations

and make the Company a respected household name.

To consistently achieve high growth with the highest levels of productivity.

To be a technology driven, efficient and financially sound organisation.

To contribute towards community development and nation building.

To be a responsible corporate citizen nurturing human values and concern for

society, the environment and above all, the people.

To encourage ideas, talent and value systems.

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To uphold the guiding principles of trust, integrity and transparency in all aspects

of interactions and dealings.

.

OBJECTIVES:

Strengthens and Enhances Existing Business Roles

Drives greater empowerment, business focus, operational efficiencies and

customer value.

Takes another significant steps towards institutionalization and building a

conglomerate of the future

AREAS OF OPERATIONS

Reliance communications

Reliance energy

Reliance mutual funds

Reliance life insurance

Reliance general insurance

Reliance port folio management

COMPETITORS:

Major competitors in today’s market are which gave a proper competition to the Reliance

company in the communication sector are as follows:

IDEA

AIRTEL

TATA INDICOM

VODAFONE

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BSNL

1.3 PRODUCT PROFILE

Reliance Globalcom has an established reputation as a leading carrier's carrier. and are

specialists in providing tailored connectivity solutions for the largest consumers of

international communications capacity.  We achieve this via a suite of flexible and high-

performance managed bandwidth (SDH / SONET), Ethernet, IP and co-location services,

which are available across four continents.

PRODUCTS

GSM Services Prepaid Postpaid

Home Phones Fixed line Fixed Wireless

Internet & Broadband Internet up to 8 mbps Wi-Fi

Wireless Internet Data Card USB Modem

Reliance PCO

Reliance IPTV

Reliance FLAG Suite of Services

Reliance Globalcom provides a suite of Wholesale services under the "Reliance FLAG"

brand. Reliance FLAG is the worlds largest private undersea cable system spanning

65,000 kms seamlessly integrated with Reliance Communications 1, 10,000 kms of

domestic optic fiber provides a robust Global Service Delivery Platform connecting 37

key business markets in India, the Middle East, Asia, Europe, and the U.S. through an

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overlay low-latency, global MPLS-based IP network. The Services provided under

Reliance FLAG are Global Ethernet, managed Bandwidth, Capacity Services, IP Transit,

IPLC and VPN Service.

CHAPTER -2

RESEARCH DESIGN

2.1 THEOREITICAL BACKGROUND OF THE STUDY

Marketing is defined by American marketing association “Marketing is the performance

of business activities that direct the flow of goods and services from product to

customers”

Marketing management is a business discipline which is focused on the practical

application of marketing techniques and the management of a firm's marketing resources

and activities.

Functions of marketing management:

Determination of marketing goals

Formulating marketing, plans, procedures, polices etc

Designing marketing strategies and marketing mix

Planning marketing programs

Sales: A sale is the pinnacle activity involved in selling products or services in return for

money or other compensation. It is an act of completion of a commercial activity

Sales management: sales management is attainment of sales force goals in a effective &

efficient manner through planning, staffing, training, leading & controlling organizational

resources.

Functions: The functions of sales management include planning, organizing and

controlling of activities related to recruitment, selection, supervising, motivating and

evaluating the performance of sales force. An important part of the function is to balance

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sales activities of the sales team that create short term results, together with building the

business for the longer term future.

Retailing: Retailing is the sale of goods and services to the ultimate consumers for

personal family or household use. Thus retailing involves more than selling tangible

products. Retailer is a person who links the producers and the ultimate consumers.

Functions of retailing:

1. An assortment of merchandise appropriate to a particular market

2. Breaking of bulk so that small quantities can be sold

3. Holding of stock for instance availability at relatively stable prices

4. Causing the goods to move through the distribution system i.e. from manufactures

to retailer to consumer

5. Credit and hire purchase facility

6. Product guarantee, after sale service and dealing with customer complaints

Marketing channels - Marketing channels can be perceived as sets of interdependent

organizations involved in the process of making product/services to the potential

consumers

Functions of marketing channel:

1. Satisfy demand by supplying goods and services at right place, quantity, quality

and price

2. Stimulate demand through promotional activities of the units (eg. Retailers,

manufactures representatives, sales officers, wholesales)

3. An organized network that creates value for end users by generation form,

possession ,time and place utilities

4. Identifying customer requirements

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Marketing flow in channels:

Producers

Physical distributionPossession ownershipPromotionNegotiation FinancingRisking OrderingPayment

Wholesaler

Physical distributionPossession ownershipPromotionNegotiation FinancingRisking OrderingPayment

Retailer

Physical distributionPossession ownershipPromotionNegotiation FinancingRisking OrderingPayment

Consumers

2. 2 TITLE OF THE STUDY

“A study on channel effectiveness in service delivery of Royal Tech Distributor for

Reliance Communications in Bangalore city”

2. 3.STATEMENT OF THE PROBLEM

A problem well defined is half solved sometimes if we are able to define a problem we

require an explanatory research to gather data about the real nature of the problem and

tom suggest possible solution or new ideas. In case the clarity is there about the problem,

descriptive or casual research is conducted to determine the cause and effect relationship.

The study is conducted to determine to determine the effectiveness of Royal Tech

Distributors in service delivery for Reliance Communications in Bangalore city.

2. 4.OBJECTIVES OF THE STUDY

To study channel effectiveness in service delivery of Royal Tech Distributor for

Reliance Communications.

To understand the distribution channel of reliance communication.

To determine the satisfaction level of the retailers.

To know the promotional activities provided by the distributors.

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To understand the role of DSR (Direct sales representatives) in service delivery.

To provide company with suitable suggestions to increase the service delivery.

Data source

Primary data

Secondary data

Primary data: this is first hand information collected from

Existing retailers

Future potential retailers

The above said data was collected through different modes like

Observation method

Survey method

Interview method.

Secondary data: is data collected from sources which contain data which have been

collected and complied for another purpose. The secondary source of data consists of

Companies database and companies journals

Published records and reports

Related websites of various organizations

Research instruments:

Since the present study was accomplished in a limited time, no sophisticated tools or

statistical techniques could be used. However simple techniques like percentages, visual

presentations like bar charts pie charts, line graphs were used

Questionnaire:

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A Communication method which is selected as the instrument for collecting the data as

the respondents are directly interviewed by the researcher.

2.5 SCOPE OF THE STUDY

In the modern Telecommunication business world, to survive and to make costumer

delight and satisfy is the most important factor which needs to be considered. Increasing

the costumer base is a key factor. The study is the step towards ascertaining the service

provided by reliance communication and other service providers. The mobile phone

market is very competitive.

The study was conducted in Reliance Communication to determine the channel

effectiveness service delivery of Royal Tech Distributor and in order to acquire a larger

customer base satisfying customer with their needs is the most important criteria. These

functions are done through the retailers so it is foremost important to satisfy the retailers

first to identify their needs and to fulfill them and to provide proper promotional tools for

retailers to promote the product.

2.6 RESEARCH METHODOLOGY AND DATA COLLECTION

The word research is derived from the Latin word meaning to know. It is a systematic

and a replicable process, which identifies and defines problems, within specified

boundaries. It employs well-designed method to collect the data and analyses the results.

It disseminates the findings to contribute to generalize able knowledge. The

characteristics of research presented below will be examined in greater details later are:

Systematic problem solving which identifies variables and tests relationships

between them,

Collecting, organizing and evaluating data.

Logical, so procedures can be duplicated or understood by others

Empirical, so decisions are based on data collected

Reductive, so it investigates a small sample which can be generalized to a larger

population

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Replicable, so others may test the findings by repeating it.

Discovering new facts or verify and test old facts.

SAMPLE SELECTION

Sample size

Sampling plan and unit

Sample design

Sample size

This refers to number of items selected from the universe to constitute a sample. In other

words the number of respondents from which data is collected. The sample size of this

study is 50 to determine the effectiveness of distribution and to evaluate the service

provided to retailers

Sampling units

One of the units into which an aggregate is divided for purpose of sampling. The

sampling unit survey was done in Bangalore city in areas like Shivajinagar,

Vasanthnagar, Cox town, Frazer town etc.

Sample design

Simple random sampling was chosen to collect relevant information.

Simple random sampling:

Simple random sampling refers to that sampling technique in which each and every unit

of the population has an equal opportunity of being selected in the sample

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2.7 LIMITATIONS OF THE STUDY:

The respondent may be biased.

Due to language problem it is possible that the respondents were not be able to

understand the questionnaire and can cause misleading results.

The research was confined to Bangalore city only.

The time available was insufficient to carry on an exhaustive study but the research

has done every effort to make this study an exhaustive one.

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CHAPTER-3

DATA ANALYSIS AND INTERPRETATION

TABLE NO: 1

Table showing age of the respondents:

PARTICULARS NO OF RESPONDENTS (%)PERCENTAGE

18-20 7 14

20-25 15 30

25-35 18 36

Above 35 10 20

Total 50 100

ANALYSIS:

From the above table it can be observed that, 30% are between age group 20-25, 36% are

between age group 25-35, 20% are between age group above 35 and 14% are between

age between group 18-20.

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GRAPH NO: 1

INFERENCE:

From the above graph we can interpret that a majority of respondents who belong to

middle and young age group are doing retailing business in India. This shows a huge

potential for the young and middle age group people to carry out retailing business.

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TABLE NO: 2

Table showing the occupation of respondents

PARTICULARS NO OF RESPONDENTS (%)PERCENTAGEBusiness 26 52

Self employed 11 22

Professional 9 18

Others 4 8

Total 50 50

ANALYSIS:

From the above table it can be observed that, 52% of people are in business occupation,

22% are self employed, 18% are professionals and 8% are doing other occupations.

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GRAPH NO: 2

INFERENCE:

From the above analysis, it is clear that business people, self employed are doing retailing

business and professional people are less because of the research area and other people

carrying out retailing occupation are government employee, house wife’s etc.

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TABLE NO: 3

Gender of the respondents

PARTICULARS NO OF RESPONDENTS (%)PERCENTAGE

Male 41 82

Female 09 18

Total 50 100

ANALYSIS:

From the above table it can be observed that 82% are male and 18% are female among

the respondents who are doing retailing business.

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GRAPH NO: 3

INFERENCE:

From the above graph it is clear that majority of male are doing retailing business.

And female doing the retailing business are very few.

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TABLE NO: 4

Retailers experience with Reliance Communication

PARTICULARS NO OF RESPONDENTS

(%)PERCENTAGE

0-1 yrs 20 40

1-2 yrs 18 36

2-4 yrs 07 14

> 4 yrs 03 6

Total 50 50

ANALYSIS:

From the above table it can be observed that 40% of retailers are doing reliance

communication business from 0-1 years.36% are doing business from 1-2 year,14% are

doing business from 2-4 years and 6% are doing business from more than 4 years.

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GRAPH NO: 4

INFERENCE:

From the above analysis we can infer that from past one year majority of respondents are

retailers for reliance communication. The reason for being retailers of reliance

communication is due to launce of reliance GSM.

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TABLE NO: 5

Retailer response towards Reliance Communication

PARTICULARS NO OF RESPONDENTS (%)PERCENTAGE

Excellent 9 18

Good 25 50

Average 10 20

Below Average 06 12

TOTAL 50 100

ANALYSIS:

From the above table it can be observed that, 50% of retailer’s have a good response

towards reliance communication. 20% say its average, 18% say it’s excellent, and 12%

say it’s below average.

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GRAPH NO: 5

INFERENCE:

From the analyzed data it is clear that retailers have a good response towards reliance

communication for the service provided by them.

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TABLE NO: 6

Retailer’s opinion for Service value offered by the distributors

PARTICULARS NO OF RESPONDENTS (%)PERCENTAGE

Excellent 7 14

Good 28 56

Average 06 12

Below Average 09 18

TOTAL 50 100

ANALYSIS:

From the above table it can be observed that, 56% of retailer’s opinion about service

value offered by distributor is good, 14% say its excellent 12% say its average, and 18%

told it was below average.

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GRAPH NO: 6

INFERENCE:

From the analysis it is clear that service offered by royal tech distributor was good. And

this indicates that retailers have a good opinion towards the distributor for the service

provided by them.

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TABLE NO: 7

Product availability of Reliance Communication to retailers by the

distributor

PARTICULARS NO OF RESPONDENTS(%)PERCENTAGE

Excellent 15 30

Good 19 38

Average 11 22

Below Average 05 10

TOTAL 50 100

ANALYSIS:

From the above table it can be observed that, 38% say product availability of reliance

communication by royal tech distributor was good, 30 say it’s excellent, 22% say its

average, and 10% say it’s below average.

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GRAPH NO: 7

INFERENCE:

From the above analysis it is clear that products of reliance communication were supplied

to retailers by the distributor in time and when the stock was over and there was no delay

in filling of stocks.

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TABLE NO: 8

Customer complaints handled by the distributors

PARTICULARS NO OF RESPONDENTS (%)PERCENTAGE

Yes 31 62

No 19 38

TOTAL 50 100

ANALYSIS:

From the above table it can be observed that, 54% of respondents agree that customer

complaints are handled by the distributor. And 46% do not agree about the customer

complaints handled by the distributor.

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GRAPH NO: 8

INFERENCE:

From the above survey it is clear that majority of retailers say that customer’s complaints

are handled and solved by the distributor. This indicates that service provided by

distributor in order to resolve the customer issues is good.

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TABLE NO: 9

Customer’s complaints handled by the retailers

PARTICULARSNO OF RESPONDENTS

(%)PERCENTAGE

Yes 33 66

No 17 34

TOTAL 50 100

ANALYSIS:

From the above table it can be observed that, 66% of retailer says that they handle

customer complaints directly and 34% say they do not handle customer complaints

directly.

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GRAPH NO: 9

INFERENCE:

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From the above analyses it shows that retailers resolve the customer complaints directly.

And in order to resolve the customer complaints at a much faster rate retailer must be

provided with proper training and necessary skills to handle customer issues.

TABLE NO: 10

Opinion of retailers about the duration taken to assess customer

complaints

TIME TAKEN

PARTICULARS

Hours Days Week Total

NOR %Age NOR %Age NOR %Age NOR %Age

a. Handsets09 38 13 26 18 36 50 100

b. Sim activations14 28 28 56 4 8 50 100

c. Recharges

44 88 6 12 - - 50 100

NOTE: NOR =No of respondents

ANALYSIS:

From the above table it can be observed that,

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38% retailers say it takes hours together to repair or resolve complaints w.r.t to handsets

and 26% say it take days to rectify the issue.

14% say it takes hours for sim activations and 56% say it takes days for sim activation.

88% say it takes hours to recharge and 12% say it takes days for recharges to be done.

GRAPH NO: 10

Graph showing Opinion of retailers about the duration taken to assess

customer complaints

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INFERENCE:

From the above analyses it can be observed that more time was taken to

rectify issues like handset repairs, days together for sim activations while

recharges took less time

TABLE NO: 11

Promotional activities provided by distributor to sell the product

PARTICULARSNO OF

RESPONDENTS(%)PERCENTAGE

38

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Advertisements 10 20

Brochures 20 40

Posters/Displays 12 24

Others 08 16

TOTAL 50 100

ANALYSIS:

From the above table it can be observed that, 40% of respondents find brochures were

provided by distributor to sell the product, 24% say posters and displays were

provided ,20% say advertisement were provided and 16% say other promotional support

were provided to sell the products.

GRAPH NO: 11

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INFERENCE:

From the above analyses it is clear that broachers, posters/displays are the most effective

promotion activities provided by the distributors. And other promotional activities like

stickers, catalogues are provided by distributor to sell the products which were not much

effective.

TABLE NO: 12

Opinion about the service provided by Royal Tech Distributor.

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OPINIONS

PARTICULARS

Excellent Good Average Need to improve

Total

NOR %Age NOR %Age NOR %Age NOR %Age NOR %Age

a. Speed of Service 12 24 21 42 10 20 7 14 50 100

b. Product knowledge 9 18 18 36 13 26 10 20 50 100

c. Willingness to help

4 8 16 32 24 48 6 12 50 100

d. After sales service

14 28 26 52 6 12 4 8 50 100

NOTE: NOR =No of respondents

ANALYSIS:

From the above table it can be observed that:

42% respondents say that speed service provided was good, 14% say it needs to improve.

36% respondents agree product knowledge of distributor is good and 20% agree it needs

to be improved.

48% of respondents say that willingness to help of distributor was average and 8% say its

excellent.

52% of respondents say after sales service of distributor is good and 8% say it needs to be

improved .

GRAPH NO: 12

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Graph showing opinion of retailers about the service provided by Royal

Tech Distributor.

INFERENCE:

From the above survey it is clear that speed of service provided is good and product

knowledge provided by distributor is good but as we can see the support provided by

distributor needs improvement and after sales service is excellent. Hence we can

conclude that service provided by Royal Tech Distributor is good.

TABLE NO: 13

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Table showing the retailer satisfaction with the profit margin provided

by the distributors

PARTICULARS NO OF RESPONDENTS(%)PERCENTAGE

Yes 34 68

No 16 32

TOTAL 50 100

ANALYSIS:

From the above table it can be observed that, 68% are satisfied with the profit margin

provided by the distributor and 32% are not satisfied with the profit margin provided by

the distributor.

GRAPH NO: 13

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INFERENCE:

From the survey it is clear that profit margin given to retailers on easy recharges, sim

activations, handset selling are provided within the time period and retailers are satisfied

with the profit margin provided.

TABLE NO: 14

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Table showing Comparison of Royal Tech distributors with other

distributors

RATINGS

PARTICULARS

Excellent Good Average Need to improve

Total

NOR %Age NOR %Age NOR %Age NOR %Age NOR %Age

a. Advertisement07 14 14 28 16 32 13 26 50 100

b. Promotion08 16 18 36 14 28 10 20 50 100

c. Credit

11 22 14 28 13 26 12 24 50 100

d. Claims 02 04 12 24 25 50 11 22 50 100

e. Offers/Gifts 07 14 16 32 19 38 8 16 50 100

NOTE: NOR =No of respondents

ANALYSIS:

From the above table it can be observed that, 32% say advertisements provided by

distributor were average when compared to other distributors and 14% say it was

excellent.

36% say promotions provided by distributor were good and 16% say it was excellent.

28% say credits provided by distributor were good and 22% say it was excellent.

50% say claims were settled at a average rate and 04 % say it was excellent.

38% say offers/gifts provided were average and 14% say it was excellent.

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GRAPH NO: 14

Graph showing the comparison of Royal Tech Distributor from other

distributors.

INFERENCE:

From the survey we can conclude that advertisements provided by distributor were

average when compared to other distributor and promotion were good .credit provided by

distributor were average when compared to other distributor and claims were settled at a

slower rate. Offers/gifts provided to retailers’ were average when compared to other

distributors.

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TABLE NO: 15

Table showing retailers opinion about frequency of direct sales

representatives (DSR) visits to retail shops

PARTICULARS NO OF RESPONDENTS(%)PERCENTAGE

YES 31 62

NO 19 38

Total 50 100

ANALYSIS:

From the above table it can be observed that, 62% agree that DSR visits their shops

regularly and 38% say DSR does not visits their shops regularly.

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GRAPH NO: 15

INFERENCE:

From the above graph it is clear that DSR visits to retail outlets frequently.

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TABLE NO: 16

Table showing DSR Visit to retailers per week:

PARTICULARS NO OF RESPONDENTS (%)PERCENTAGE

0-1 times 7 141-2 times 12 242-3 times 9 183-4 times 6 124-5 times 14 285-7 times 2 4TOTAL 50 100

ANALYSIS:

From the above table it can be observed that, 14% of shops are visited by DSR 0-1 times

in a week, 24% of shops are visited 1-2 times in a week, 18% of shops are visited 2-3

times in week, 12% of shops are visited 3-4 times in week 28% of shops are visited 4-5

times in week and 4% of shops are visited 5-7 times in week.

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GRAPH NO: 16

INFERENCE:

From the above graph it is clear that frequency of DSR visits to a shop in a week is 4-5

times. This indicates only few shops are visited on a regular basis.

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TABLE NO: 17

Table showing Experience of retailer when interacted with Direct Sales

Executive (DSR).

RATINGS

PARTICULARS

Excellent Good Average Need to improve

Total

NOR %Age NOR %Age NOR %Age NOR %Age NOR %Age

a. Courteous/polite14 28 16 32 11 22 9 18 50 100

b. Listening skills8 16 14 28 12 24 16 32 50 100

c. Product knowledge

10 20 13 26 18 36 9 18 50 100

d. Willingness to help

6 12 14 28 20 40 10 20 50 100

e. Speed of service 11 22 18 36 9 18 12 24 50 100

NOTE: NOR =No of respondents

ANALYSIS:

From the above table it can be observed that, 32% say DSR were polite and courteous

with retailers and 18% say they should improve.

32% say listings skills of DSR needs to be improved and 16% say it’s excellent

36% say DSR have average level of information about product and 18% say it should be

improved.

40% say DSR willingness to help to retailers is average and 12% say it’s excellent

36% say DSR speed of service was good and 18% say its average.

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GRAPH NO: 17

Graph showing retailers experience when interacted with Direct Sales

Representatives (DSR)

INFERENCE:

From the above graph it is clear that DSR are courteous and polite with retailers.

Listing skills of DSR is poor and need to be improved, product knowledge is average.

The willingness of DSR to sort out retailer’s problem is average. And speed of service

provided by DSR to retailers is good.

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CHAPTER -4

SUMMARY OF FINDINGS

From the analyzed data it is clear that 36% of respondents who were doing

retailing business were people of young and middle age group. This shows that

there is a huge potential for this category of people to carry out retailing business

and no of retail shops were increased by 40% in the past one year due to the

launch of reliance GSM service

Majority of male are doing retailing business and female doing the retailing

business are very few.

It was observed from analyzed data that product were available to retailers

through distributors on time. Customer complaints were handled by both retailers

and distributors

50% of retailers had a good response towards the response provided by reliance

communication

68% of retailers were satisfied with the profit margin provided to them

From the above analyses it was observed that more time was taken to rectify

issues like handset repairs, days together for sim activations while recharges took

less time

When royal tech distributor was compared to other distributor 32% of respondents

said that advertisements were not effective and 50 % said that claims were not

settled soon

40% retailers had a good opinion that promotional support provided to them was

not effective.

Retailers had a good opinion towards DSR for the service provided.62% of

retailers had a opinion that DSR visited their shops frequently. It was observed

from the analyses that DSR were courteous and polite with retailers but listening

skills and product knowledge was average.

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CHAPTER -5

SUGGESTIONS AND CONCLUSION

SUGGESTIONS:

From the analysis it is clear that the distributors need to maintain stock of CDMA

handsets, CDMA and GSM currencies and recharge coupons as there is a shortage of

supply in some retail outlets and another frequent complaints which is seen among the

retailers is about the settlement of claims, measures must be taken to resolve it soon. As

there were many retailers who are were into CDMA business and now have also taken up

new Reliance GSM, confusion is created for the recharge technique of CDMA and GSM,

to overcome this they should be provided with retailers help desk number.

DSR (Distributor Sales Representative) forms a bridge between distributors and

the retailers, therefore it is very essential for Royal Tech to train the DSR’s so that they

will be able resolve the retailer’s problems and thereby need not approach channel

manager or distributor manager. The channel Manager should have regular visits to all

categories of retailers and randomly check the performance of the DSR’s.

To increase the sales of GSM, company should provide electronics displays in

selected retail shops so as to attract the customers and advertisements about these retail

outlets in newspapers so that they can overcome the standard promotion way of only

posters and banners.

Reliance GSM need to motivate the retailers by giving them incentives, trophies

of achievements to retailers for achieving the target and boosting the sales. This forms a

way of motivation for the retailer to concentrate on further increase of sales.

The company needs to train the retailers about the product and its offers so that they will

be in a position to handle the customer complaints directly and need not approach the

distributor frequently.

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CONCLUSIONS:

Success of an organization largely depends mainly on its marketing abilities. For

this, a marketer should know the needs, requirements and preferences of target market.

The marketer should make a detailed study of the expectations of the retailers and then

take necessary steps to fulfill the needs of the retailer. As it is the retailers who interacts

with the end customers it is necessary to identify the requirements of retailer and to fulfill

those needs to do this work the channel effectiveness should be determined in the role of

service delivery. The main motive for conducting this survey was to identify the channel

effectiveness in service delivery of distributor for reliance communication.

The report was an endeavour to determine how effective are the distributor was in

delivery of service for the retailers. The study was successful in understanding the

distribution channel of reliance communication and how the products reach to ultimate

consumer .The flow of products through different intermediaries in the channel and role

played by them in delivery of products to consumers.

The analysis helped to identify the satisfaction level of retailers for the service

provided by the distributors and impact of this on ultimate customers. And to identify

different promotional support provided by the company and to differentiate the

distributors according to their performances. It was useful to understand the role of

representatives in service delivery to retailers.

The study is confined only to East of Bangalore and the retailers of Royal Tech

and from the survey it was clear that overall performance of Royal Tech is good and the

retailers were satisfied.

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