ravi reliance

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A Brief StudyOn

TELECOM SERVICES OF RELIANCE COMMUNICATION

PROJECT REPORT

Submitted for Partial fulfillment forThe Award of the Degree ofMaster of Business Administration

(2007-2009)

INTERNATIONAL SCHOOL OF BUSINESS &RESEARCH

# 62B, ELECTRONIC CITY, PHASE-1, OPP. POLICE STATION,BANGALORE, PIN-560100

Submitt

ed by:GAURAV GUPTA

Enroll. No. 5310700343

Reg. No. -

531M8075F00198 MBA (FINANCE &RETAIL)

Session: -2007-2009

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CERTIFICATE

This is to certify that Mr. Gaurav Gupta bearing university

Regd. No. 531M8075F00198 has successfully completed

the project on the topic TELECOM SERVICE IN RELIANCE

COMMUNICATION.

Director

Mr.Amit

Gupta

ISBR,Bangalore

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CERTIFICATE

This is to certify that Mr. Gaurav Gupta bearing universityRegd. No.531M8075F00198 has successfully completed

the project on the topic TELECOM SERVICE IN RELIANCE

COMMUNICATIONunder the guidance of Prof.KISHAN.

Under Guidance

Prof. Kishan

ISBR,Bangalore

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CONTENTS

Chapter 1 Introduction

Concept of Reliance communication

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

Chapter 2 Main Studies

Introduction of the Topic

Apply Six Sigma The problems being faced

What does Company expect to do by solving theproblem

Chapter 3 Methodologies

Research problemResearch Objective & sub- objectiveInformation RequirementChoice of Research Design

Research Instrument usedSampling Technique used & Sample size

Chapter 4 Data Analysis & Interpretation

Data Interpretation & Finding of customer Survey

Market share of mobile subscribers

Performance Snapshot

Chapter 5 Conclusions Conclusion

Finding

Chapter 6 Suggestions Appendices

Bibliography

Questionnaire

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ACKNOWLEDGEMENT

I would like to express my sincere thanks to all those instrumental in thisproject Work. First of all, I would to thank Prof. Amit Gupta Director ofInternational School of Business & Research forgiving methisopportunity to do this project and learn from it. I am thankful toReliance Communication Ltd for giving me helpful information tocomplete this project (Research).

I express my sincere thanks to Mr. Raj (Junior Sales Manager) & Prof.Kishen (ISBR faculty), for helping me in giving me all relevantinformation about the product and service.

My heart full thanks to the whole staff and customers (Corporate) ofReliance Communication Ltd, who gave me continuous support inevery possible manner to gain practical knowledge in Industry.

Finally I would like thank all lecturers, friends and my family for the kind ofsupport and to all who directly or indirectly helped me in preparing thisproject report and special thanks to website- www.rcom.co.in.

Date:

Place: Bangalore GAURAV GUPTA

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PREFACE

A project is a scientific and systematic study of real issues on a problem with theapplication 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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CHAPTER - 1

Introduction

Concept of Reliance communication

An Overview of current Market Scenario

Brief Study of the Organization

Organizational Set-up

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(1) CONCEPT OF RELIANCE COMMUNICATION

Anil Ambani: Telecom person of the year 2007

His marketing strategy has made millions of Indians happy, they got the best mobile

tariffs in the world-local call costs at 15 paise/minute, and STD call at 40

paise/minute

NEW DELHI, INDIA: When the VOICE&DATA jury, comprising eminentprofessionals from the telecom field, met in Delhi in June to choose the TelecomPerson of the Year 2007, the five-hour selection process was steamy.

The reason was obvious: The telecom sector is growing faster than any other segmentand naturally their CEOs have a lot to crow about. The jury had to select one fromthree CEOs, who had made it to the final list through nominations from the industryand the initial scrutiny. Among the three, one of the main contenders was a youngCEO. The jury decided that he should come back next year to try and win the covetedaward. The list now had two names-both CEOs of two well-known companies. The

pivotal difference between the two: one is an entrepreneur and the other is not sopopular, as his credit is shared among a number of his big daddies.

Following a five-hour closely held, hotly debated discussion, the name was

announced: Anil Dhirubhai Ambani, chairman of Reliance Communications. AnilAmbani joined Reliance Industries (currently promoted by his brother MukeshAmbani, following their split) in 1983 as co-chief executive officer. Forbes rankedhim number 104 among the World's Richest People in 2006. The Ambani familyfaced criticism when it announced its ambitious plans to build a countrywide telecomnetwork, as its prior expertise lay in commodities-textiles and petrochemicals-

business only. Apart from that telecom needs a service-oriented mindset, critics felt.What they did not remember was how the family had served its millions ofshareholders.

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

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

Media sees his aggression when he announces financial results for the Reliance ADAgroup 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 theirquestions. He also remembers to call select journalists by name.

To merchant bankers he, who has already contributed immensely to thefinancial 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, afterindirectly jacking up the valuation. His negotiations with the Qualcomm chief are alsoa folk theory now.

How did Ambani become the VOICE&DATA Telecom Person of the Year 2007?

What are his personal and organizational achievements in the recent past?

His path-breaking marketing strategy that was put in by the strongest team of telecomprofessionals the country has ever seen has made millions of Indians happy as theygot the best mobile tariffs in the world. The aggression resulted to adding to hisalready swollen kitty. Every hour India will be adding around 20,000 new mobilecustomers 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 USRs 100 per minute. With Reliance Communications pioneering price initiative, alocal call now costs a mere 15 paise per minute, STD 40 paise, and a call to the UScosts less than Rs 2 per minute. The presence of Reliance Communications is makingthe competition in India panicky. Global telecom forces will also shortly start feelingthe heat. Ambani has also recently announced his Rs 1,200 crore buyout of YipesHoldings.

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 wirelessnetwork 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%

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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 enterpriseand individual customers. Over the next few years, we will have over 100 millioncustomers, making us one of the top 5 telecom players in the world. In four years, we putup 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 thisyear, it will be available in over 23,000 towns and 600,000 villages," Anil Ambani said atthe first annual general meeting of Reliance Communications since the re-organization ofthe Reliance Group in June 2005.

"In four years of operations, we invested around Rs 32,000 crore. This year alone we willinvest over Rs 20,000 crore. At the end of this year, we will have covered over 90% ofour 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 thecurve," Ambani adds.

According to Ambani, the financial restructuring of Reliance Communications is thebiggest turnaround story in the history of corporate India. The inherited ownershipstructure of Reliance Communications was complex. The reorganization has yielded asimple, fair, and transparent ownership structure, and given Reliance Communications100% ownership of all operational and associate companies.

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

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Fiscal, Reliance Communications will spend Rs 16,000 crore to further expand andstrengthen 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 anumber of inorganic opportunities in select international markets to further expand ourfootprint," Ambani said.

Reliance Communications One India, One Tariff plan allowed millions to connect acrossIndia at just one rupee a minute. The company was the first one to break the Rs 1,000entry-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 wirelessnetwork in the world, covering over 900 mn Indians or more than 15% of the global

population. It will cover 23,000 towns or every single Indian habitation with a populationof over 1,000. Reliance Communications will cover almost 100% of all rail routes,

providing seamless voice, video, radio, and Internet connectivity to 14 mn commutersevery day. It will also cover almost 100% of all national highways, and 84% of all statehighways, giving millions of users the power to talk, text, surf, play, chat or simply stayin touch across nearly the entire length of India's 2,00,000-km-long road network.

Having achieved tremendous growth, the main challenge for Reliance Communications is

to improve quality of service and ARPU. Its enterprise business is also not in a positionto compete with the global majors. Stock market valuations may boost the fortunes of anentrepreneur, but Ambani needs to address the issues faced by the growing mobilecustomer base, especially in India, where bureaucracy takes pride in checking the

businessman.

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(2) AN OVERVIEW OF CURRENT MARKET SCENARIO

Reliance Communications (formerly Reliance Communications Ventures) is one ofIndia's largest providers of integrated communications services. The company has

more than 20 million customers and serves individual consumers, enterprises, andcarriers, providing wireless, wireline, long distance, voice, data, and internetcommunications services through a number of operating subsidiaries. The companysells communications and digital entertainment products and services through itschain of Reliance Web World retail outlets. The company's Reliance Infocommsubsidiary provides wireless communications services throughout India. RelianceCommunications is part of the Reliance - Anil Dhirubhai Ambani Group.

The current network expansion undertaken by Reliance is the largest wireless network

expansion undertaken by any operator across the world.

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

Reliance Communications has a reliable, high-capacity, integrated (both wireless andwire line) and convergent (voice, data and video) digital network. It is capable ofdelivering a range of services spanning the entire infocomm (information and

communication) value chain, including infrastructure and services for enterprisesas well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionizing the way India communicates andnetworks, truly bringing about a new way of life.

We will leverage our strengths to execute complex global-scale projects to facilitateleading-edge information and communication services affordable to all individualconsumers and businesses in India.

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

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

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(3) BRIEF STUDY OF THE ORGANIZATION

Chairmans profile

Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani(1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group.

It is India's foremost truly integrated telecommunications service provider. With acustomer base of over 36 million including close to one million individual overseasretail customers, Reliance Communications ranks among the top ten Asian Telecomcompanies. Its corporate clientele includes 600 Indian, 250 multinational corporationsand over 200 global carriers and owns and operates the world's largest nextgeneration, IP enabled connectivity infrastructure, comprising over 150,000kilometers of fiber optic cable systems in India, USA, Europe, Middle East and theAsia Pacific region.

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

Natural Resources.

He is also the president of the Dhirubhai Ambani Institute of Information andCommunications Technology, Gandhinagar

An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is

credited with pioneering several financial innovations in the Indian capital markets.He spearheaded the countrys first forays into overseas capital markets withinternational public offerings of global depositary receipts, convertibles and bonds.

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

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

He is currently a member of:

Wharton Board of Overseers, The Wharton School, USA Board of Governors, Indian Institute of Management (IIM), Ahmedabad Board of Governors, Indian Institute of Technology (IIT), Kanpur Executive Board, Indian School of Business (ISB), Hyderabad

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

Select Awards and Achievements

Voted the Businessman of the Year in a poll conducted by The Times of India TNS, December 2006

Voted the Best role model among business leaders in the biannual Mood of theNation poll conducted by India Today magazine, August 2006

Conferred the CEO of the Year 2004 in the Platts Global Energy Awards Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management

Association, October 2002 Awarded the First Wharton Indian Alumni Award by the Wharton India Economic

Forum (WIEF) in recognition of his contribution to the establishment of Reliance as aglobal leader in many of its business areas, December 2001

Selected by Asiaweek magazine for its list of 'Leaders of the Millennium in Business andFinance' and was introduced as the only 'new hero' in Business and Finance from India, June1999.

(4) ORGANIZATIONAL SET UP

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Reliance Communication Limited

CHAIRMAN

PRESIDENT PRESIDENT PRESIDENT

(PRESONAL (ENTERPRISES (HOME

BUSINESS) BUSINESS) BUSINESS)

SENIOURV.P

V.P

GM

DGM

AGM

SENIOURMANAGER

MANAGER

DUPTYMANAGER

ASST.

MANAGER

MANAGEMENTTRAINING

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CHAPTER - 2

Main Studies

Introduction of the Topic

Apply six sigma

The problems being faced

What does Company expect to do by solving the

problem

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(1) INTRODUCTION OF THE TOPIC

What is SWOT Analysis?

SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing anorganizations strengths (what an organization can do) and weaknesses (what anorganization cannot do) in addition to opportunities (potential favorable conditions for anorganization) and threats (potential unfavorable conditions for an organization). SWOTanalysis is an important step in planning and its value is often underestimated despite thesimplicity in creation. The role of SWOT analysis is to take the information from theenvironmental analysis and separate it into internal issues (strengths and weaknesses) andexternal issues (opportunities and threats). Once this is completed, SWOT analysisdetermines 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 andactivities, but it is particularly appropriate to the early stages of planning for a TIPD visit.Performing SWOT analysis involves generating and recording the strengths, weaknesses,opportunities, and threats relating to a given task. It is customary for the analysis to takeaccount of internal resources and capabilities (strengths and weaknesses) and factorsexternal to the organization (opportunities and threats).

SWOT analysis can provide:A framework for identifying and analyzing strengths, weaknesses, opportunities andthreats.

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 solvingand 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 beincorporated into the strategic planning model. An example of a strategic planningtechnique that incorporates an objective-driven SWOT analysis is SCAN analysis.Strategic Planning, including SWOT and SCAN analysis, has been the subject of muchresearch.

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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 insertedinto 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 - usethem as you find most helpful, and make up your own to suit the issue being analyzed. Itis 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, amethod, or option, etc.

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

a company (its position in the market, commercial viability, etc) a method of sales distribution a product or brand a business idea a strategic option, such as entering a new market or launching a new product a opportunity to make an acquisition a potential partnership changing a supplier outsourcing a service, activity or resource an investment opportunity

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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 overCDMA

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:

MAN

[Fishbone diagram]

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(2) PROBLEM BEING FACED

Lack of communication between retailers and distributor

Lack of improper distribution channel

Competitors

Not regular visit of DSE and Runner

All retailers are not aware of new scheme of RCOM

Lack of sales promotion and advertisement

Retailer doesnt get claim at proper time

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

(3) 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 problem

Research Objective & sub- objective

Information Requirement

Choice of Research Design

Research Instrument used

Schemes, Products & Sample size

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(1) RESEARCH PROBLEM

Collection of Data of othercompanies Tata indicom, Airtel & BSNL

Retailers some time gives wrong data

Limitation of time and money

(2) RESEARCH OBJECTIVE

To know the demand of Rcom bundle offer along with LGRD 3000 and 6100 as Illas the demand of Rcom Bachat pack Sim in the market

To help in development and introduction of new product

To identify the company position among competitors To determine those factors which persuade retailers for sale of RCOM

sims/product

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

To study the effect of irregular supply on the sale of the product

(3) SUB OBJECTIVE

To compare the Airtel and Tata indicom Bundle offer with RDLG 3000,3500 & 6100 for analyzing the status of RCOM Bundle Offer

To identify the Market share of RCOM

To find out the basic problems of retailers

To find out the performance of Distributor

To find out the basic problems of Channel of Distributor

To find out the Claims pending of Retailers

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(4)INFORMATION REQUAREMENT

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

Sim Processing Fees

Discount Offered

Schemes offered

Service Tax

(5) SOURCES OF INFORMATION

Data collected from the Company

Secondary Data

Internet

Retailers

Distributor

Sales Executives

Other Trainees (Runner)

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(6) SCHEMES, PRODUCTS

RELIANCE PRODUCT

Reliance Base Phone

Reliance Mobile

Reliance Data Card

Reliance Voucher, E-Recharge

Reliance PCO

Reliance Broad Band

STD CALLING CARD

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

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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/-

PRODUCTS FOR THE MONTH OF JULY 2008

TOPUPs

Rs. 55

Rs. 77

Rs. 210

Rs. 310

Rs. 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)



STVs

Rs. 195Rs. 496

Rs. 35

Rs. 79

Rs. 49

Rs. 99

Rs. 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)

RCVs

Rs. 250

Rs. 888

FREEDOM TARIFF, TALKTIME Rs. 147.5 AND VALIDITY 30 DAYS

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

UN-LIMITED

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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Research Methodology

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

of studying how research is done scientifically. The most desirable approach with regards to

the selection of the research methodology depends on the nature of particular work, time and

resources available along with the desire level of accuracy.

Research Type Descriptive Research

Data Source Primary Data

Research Instrument Questionnaires

Type of Questionnaire Structured

Sampling Unit Retailer

Sampling Method Judgmental

Contact Method Personal Interview

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CHAPTER - 4

Data Analysis & Interpretation

Data Interpretation & Finding of customer

Survey

Market share of mobile subscribers

Performance Snapshot

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(1) DATA INTERPRETATION OF CUSTOMERS SURVEY

Age group Tabulating in percentage the age group of customers

Above figure shows that researcher having surveyed 18 respondents, 25% belong toage group 18-28%, 47% belong to age group 28-35%, belong to age group 36-45 and6% above age of 45.

Income Level Tabulation

Age Group Percentage (%)

18-25 25

28-35 47

36-45 22

Above 45 6

32

0

5

10

15

20

25

30

35

40

4550

Percentage (%)

18-25

28-35

36-45

Above 45


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The above analysis shows that 42% of the respondents belonged to the 8000/- andbelow income category, 34% belonged to Rs.8000 to 12000 and 18% belonged to12000-20000And 6% above income of 20000/-.

Percentages of customer who are prospective take of a particular service

Income Group Percentage (%)

8000 42

8000-12000 34

12000-20000 18

> 20000 6

33

0

5

10

15

20

25

30

35

40

45

Percentage (%)

8000

8000-12000

12000-20000

> 20000


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company Percentage (%)

AirTel 40

RIM 5

BSNL 25

IDEA 2

Vodafone 31Virgin 2

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

Scaling About RCOMM Service

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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 atelling comment. However the survey also found out that 20% and 25% of therespondents service RIM as very good and good respectively. There were 5% of therespondents who had nothing to say about the RIM. This is due to low serviceawareness and low penetration level.

(2) MARKET SHARE OF MOBILE SUBSCRIBERS

35

0

5

10

15

20

25

30

35

40

Pe r cen t a

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MARKET SHARE OF CDMA IN KARNATKA

RC

TAT

RCOMM 70%

TATA INDICOM 30%

36

30%


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MARKET SHARE OF GSM IN BANGALORE

AIRTEL 40%

RCOMM 5%

BSNL 25%

VODAFONE 31%

TATA INDICOM 2%

IDEA 2%

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(3) PERFORMANCE SNAPSHOT

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Particulars Units

12 months periodended

Quarter ended

March-2007

March-2008

June 30,2008

Sept. 30,2008

Total SubscribersCDMAGSM

ConsolidatedfinancialsRevenueEBITDACash profit fromOpera.PBITNet Profit

Total Fixed AssetsShareholders' EquityNet Debt

Key RatiosEBITDA MarginNet Profit MarginReturn on Net worthNet Debt to fundedequity- ratio

KPIsWireless APRUWireless 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

3710.7450323,238

45,79438,7787,016

190,67881,99182,06470,76254,011

523,126254,60999,700

43.0%28.3%33.7%

0.39

3400.7446030,045

50,77342,7078,066

53,22222,50224,39615,56415,123

580,324264,197129,888

42.3%28.4%34.6%

0.49

2820.664248,367

56,04646,8409,206

56,45023,01625,28815,54115,308

614,761281,598152,257

40.8%

27.1%31.8%

0.54

2710.644239,802

*APRU- Average revenue per user

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Chapter - 5

Conclusions

Conclusion

Finding

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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 levelamong telecommunication services provides new players arecoming who will necessarily intensify the competition. New productsand new schemes are being offered by the telecom serviceproviders. The need for large information capacity has growntremendously due to the demand of real time information.

Telecommunication has now become a major informationtransmission system and telecom has undoubtedly emerged as themost important industry in India. Indian telecom companies are

putting in their best offer to rope in major telecom operators of theworld e.g. Vodafone, Aircel and MTN etc. are playing their role insynergy with the operation of the Indian companies. Process ofacquisition and merger are in process and future will be only forthose companies who have an edge over others in the field. Serviceprovided and the better quality of network etc. is provided ataffordable cost. In this process of competition it is assumed that onlythose companies will survive who adopt suitable market strategyand technology innovation and up gradation to suit the aspirationand demand of the consumer.

RCOM cellular ltd. an Anil Ambani Group of cos. is very fast catchingup with the market by providing cheaper calling rates. The marketstrategies adopted by its executives are bearing fruits and thecompany although being the Second one to enter the market ofBihar & Jharkhand has found a suitable niche and recognition in theconsumer. But this is not a thing for self contentment as the surveyreveals that in network, service and distributor, its place is very farbehind to other competitors viz. Airtel, BSNL, and Tata indicom etc.

so to withstand the competition resources mobilization andtechnological innovation on the part of cos. To upgrade its quality ofnetwork and services is urgently called for.

Market access and growth is alright but the improvement of qualityon 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

Tariff Voucher of all the cellular service companies present in Bangalore zone. Alsomost of them provide only pre-paid connection.

Satisfaction: -Most of the retailers i.e. around 74% of respondents are satisfied with RCOMM

brand, 10% of them push RCOMM brand to the customer and rest 16% retailers arenot satisfied with RCOMM brand due to claim pending and the distributor. Theretailers 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 theother hand they found its competitors viz. Airtel, BSNL, TATA indicom networkconnectivity of very good to good level.

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 not provide RCV & e-Top.

Support from company: -Most of the retailers ensnared that they are supported by the companies personnel &

companies helpline.All companies provide POP (Point of presence) at right time and in adequate number.

Claim process:-

In case of RCOMM process is be claimed very belatedly i.e. almost 77% of the casestake 60-90 days, where as in case of Airtel most of the i.e. 88% is being finalized in

time limit 0-30 days.The claim process services of other competitors viz. AirCel, Smart, & Tata

Indicom are almost at par with the IDEA cellular ltd.

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Chapter 6

SuggestionsAppendices

Bibliography

Questionnaire

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Suggestions

On the basis of extensive study and research, here are some recommendation andsuggestion which may help the company to market the product and service more

profitability and increase its share in the Telecom market.

1. PROMOTIONAL ACTIVITIES

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

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

Advertising Advertising should have a clear objective and message, which hasnot been found in recent ads. Reliance is a faster growing provider service in eachstate .every offers and schemes they should show with proper message for benefitto the customer. In busy life customer do not remembered any offers and whichservice we can provided for the customer therefore they should by force showingadvertisement in growing market and among customer .customers wantscontinuously exposure in Cable and Local newspapers.

Persuasive Advertising: - Now there is a need of persuasive advertising forReliance service which can be moved into the category of comparativeadvertising. It will help the company to establish the superiority of its brandservice through specific comparison of one or more attributes and features.

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

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

should be promoted, as some expenses are also beard by dealers. Ads on Cablenetwork result greater audience attention. Schemes, gift offers etc. must behighlighted through Radio and Local newspapers.

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A. SALES PROMOTION

Cash discount

Premiums

Appointment of sale promoter

Financial schemes

B. OCCASIONAL DISCOUNT

The company may go for occasional discount offers or price off from time to time

specially during any festival. Off season discount may also prove helpful to checkfluctuating sales.

C. PRODUCT QUALITY AND TECHNICAL FEATURES

As for as some hand set mobile product quality is concerned, there is an urgentneed of technical up gradation of Reliance mobile product line. It would be

beneficial for company to launch some colors mobile hand set with the some addedfeature and minimum price.

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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

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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.

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0%

10%

20%

30%

40%

50%

60%

AirTel BSNL Smart

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8. How do you know about new scheme?

Companies SMS Poster DSE

Reliance

Airtel AirCel smart Tata Indicom

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

(i) 10-15 min. 44%

(ii) 15-30 min. 38%

(iii) 30-60 min. 6%

(iv) Above 60 min. 12%

The survey revealed that 44% retailers take 10-15 min., 38% take 15-30 min., 6% take 30-60 min.

and 12% take more than 60 min. in activation of a SIM.

10. From which company distributors you are more satisfied?

(i) Airtel 34%

(ii) Reliance 28%

(iii) BSNL 17%

(iv) AirCel 16%

(v) TATA 4%

(vi) None 1%

ravi reliance

Documents