the final report 1
TRANSCRIPT
A
Summer Training Project Report
On
“COMPRATIVE PERFORMANCE ANALYSIS OF STD/PCO SERVICES
PROVIDERS”
MAHARAJA COLLEGE OF MANAGEMENT
(Affiliated to Rajasthan Technical University, Kota Udaipur, Raj.)
For the partial fulfillment of MBA 2008-2010
SUBMITTED BY:
PUNEET AUDICHYA
MBA Sem. III
MAHARAJA COLLEGE OF MANAGEMENTUdaipur (Raj.)
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Acknowledgement
I express my sincere thanks to my company guide, Mr. DEEPAK MEHTA (Marketing & HR
Department ) Designation, for guiding me right from the inception till the successful completion of
the project. I sincerely acknowledge her for extending their valuable guidance, support for literature,
critical reviews of project and the report and above all the moral support he had provided to me with
all stages of this project.
I would also like to thank to Dr.Harvinder Soni (Director of MCM), faculty guide Ms.
RANJEETA MADHWANI (Lecturer, Dept. MARKETING)&, for their help and cooperation
throughout the project.
PUNEET AUDICHYA
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DECELARATION
I, the undersigned, hereby declare that the present summer project entitled “Comparative
Performance analysis of STD/PCO services providers in Udaipur” has been written and
undertaken by me and it is my original work and my indebtedness to other work, publications, has
been duly acknowledged at relevant place. The project is undertaken as a part of my course
curriculum of MBA program at Maharaja College of Management Udaipur.
PUNEET AUDICHYA
MBA (3rd Sem.)
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PREFACE
To attain the high standards on average, it is essential to impart training right from the
Management student to the specialized executive in every concern. Today the working culture in
corporate sector has changed. It is the team work and knowledge about the market in the
organization which place it in a leading edge in era of competition.
It is proven that bookish knowledge is not sufficient because the things are not so ideal as they
should be, nor the environment is constant. Today there is cut-throat competition, and you have to
over come your competitor’s strengths. In order to enhance my management skills and to see the
practical face of corporate sector, I have done my summer training and project at the leader in
corporate field (telecom):-
“RELIANCE COMMUNICATIONS – ANIL DHIRUBHAI AMBANI GROUP
(ADAG).”
In order to lead the industry, a company has to know the strength and weakness of its own and also
of its competitors,
My study and project is “COMPARATIVE PERFORMANCE ANALYSIS OF STD/PCO
SERVICE PROVIDERS IN UDAIPUR (WITH SPECIAL EMPHASIS ON RELIANCE
STD/PCO SERVICES in Udaipur region.)”
STD/PCO services are the next best sector of business after the mobile industry. Although
mobile have reached each and every hand, still there is large scope for the STD/PCO in rural as well
as urban areas.
My project is mainly focused on the comparison of various STD? PCO service providers, and
the feedback report from the existing operators of Reliance STD/PCO operators, that what all are the
areas where Reliance has advantage over others and what areas it is lacking behind. This feedback
has been possible when survey was done and questionnaire was being filled from various STD/PCO
operators in Udaipur region. Thus a brief comparison was obtained where we came to know the
performance of various STD/PCO service operators, their positive and weak points where Reliance
can emphasis so that it becomes a market leader in this sector too.
This report contains charts and graphs that will describe the work done more elaborately and
in a simpler manner.
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EXECUTIVE SUMMARY
The report is to have a comparison of various STD/PCO Service providers and a detailed or to
say more emphasis on Reliance PCO operators so as to have a detailed study of the performance of
Reliance PCO division.
The report has been made on some criteria’s that are common in all the STD/PCO Service
providers so as to have a fair and common comparison.
The data have been obtained from them survey and research done for which the Udaipur
region was divided in small clusters on the basis of their usage/revenue generation
Project report carries all the important aspects and is bifurcated into chapters as per
their matter and their irrelativeness with the topic and their importance.
First chapter covers the telecom sector scenario in India as a whole. The trends in growth in
subscriber base. It is worth important to note here that total subscriber base have crossed 50 million
mark.
The second chapter is about the introduction about the RELIANCE COMMUNICATIONS-
ANIL D. AMBANI GROUP” It includes their overview, business, vision, chairman’s profile,
mission, and milestones.
The third chapter contains information about some basics of reliance communications, CO
Business all the tools being used at the Reliance Communications for the handling of the LBA’s
(Local Business Associate), which is the most crucial part, which in turn helps them to retain their
customers and give them the business.
The Fourth chapter includes analytical framework of research. In the first section study is
carried on the RELIANCE STD/PCO brand image, customer satisfaction level, market penetration
and comparison of various attributes of services with the competitors in the market is done based on
questionnaire findings and recommendations are given.
On what all points the company has an advantage and where it lacks, what the PCO operator
wants from the company is being found out so that they may prove an extra advantage to the
company to overcome their lacking and fulfill the needs of operators and become a market leader.
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CONTENTS
S.NO TOPIC PAGE NO(S)
1. Introduction of Indian Telecom Industry 8
2. Introduction of the Company 14
3. Introduction of the Topic 19
4. Basics of PCO Business 25
5. Analytical framework and Research Methodology 41
6. Data Analysis and interpretation 44
7. SWOT Analysis 52
8. Conclusion & Recommendation 55
9. Annexure 58
10. Bibliography 60
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TABLES & CHARTS
S.NO TOPIC PAGE NO(S)
1 Subscriber Base of wire less Operator 10
2 Market share of wireless services provider 10
3 Wire line services subscribers 11
4 Rural wire line subscriber 11
5 Village public telephone 12
6 Public cell Office 12
7 Growth trend of wire less subscribers 13
8 Market share of public cell office 14
9 Village public Telephone 14
10 Life cycle of STD/PCO 21
11 Features of STD/PCO & CCD connection In different stages 22
12 Organization Structure 23
13 Distribution Structure 34
14 Local Business associates(LBAs) responsibility 36
15 Non active review sheet 39
16 Revenue tracker 40
17 Udaipur clusters of STD/PCO 41
18 Commission paid to the Operators 47
19 Initial Installment cost & incentives and schemes 48
20 Network connectivity & call/voice Quality 49
21 Supply of recharge voucher & dealer visit 50
22 Customer care & Technical support 51
23 Advertisement & Timely information 52
24 Annexure 61
25
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INTRODUCTION
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INDIAN TELECOM INDUSTRY
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The Indian Telecommunications network with 110.01 million connections is the fifth Largest
in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world and represents unique opportunities for
U.S. companies in the stagnant global scenario. The total subscriber base, which has
grown by 40% in 2005, is expected to reach 250 million in 2007.
According to Broadband Policy 2004, Government of India aims at 9 million broadband
connections and 18 million internet connections by 2007. The wireless subscriber base has
jumped from 33.69 million in 2004 to 62.57 million in FY2004-2005. In the last 3 years, two
out of every three new telephone subscribers were wireless subscribers. Consequently,
wireless now accounts for 54.6% of the total telephone subscriber base, as compared to
only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new
subscribers per month by 2007. The wireless technologies currently in use are Global
System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA).
There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom
circles and 4 metro cities, covering 2000 towns across the country.
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INTRODUCTIONOF
COMPANY
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1.1 Overview
“A dream comes true”
The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built 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.”
It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometers of a pan-India fiber optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.
Reliance Communications has a reliable, high-capacity, integrated (both wireless and wire line) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire Infocomm (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applications, and consulting.
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 25 million customers.
Today, Reliance Communications is revolutionizing the way India communicates and networks, truly bringing about a new way of life.
India’s leading integrated telecom company:Today, we can proudly claim that we were instrumental in harnessing the true power of information and communication, by bestowing it in the hands of the common man at affordable rates. We endeavor to further extend our efforts beyond the traditional value chain by developing and deploying complete telecom solutions for the entire spectrum of society.
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1.2 Business
Reliance Communications will offer a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications that will enhance productivity of enterprises and individuals.
This marks the beginning of Reliance's dream of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. It aims to achieve this by putting the power of information and communication in the hands of the people of India at affordable costs.
Reliance Communications will extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for India's farmers, businesses, hospitals, government and public sector organizations.
Their constant endeavor is to achieve customer delight by enhancing the productivity of the enterprises and individuals we serve.
OTHER BUSINESS AREAS OF ANIL DHIRUBHAI AMBANI GROUP(ADAG)
Reliance Energy Ltd. Reliance Mutual Fund
Harmony Reliance Communications
Reliance Life InsuranceReliance Anil Dhirubhai Ambani Group
Reliance General InsuranceReliance Portfolio Management Service
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We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.”
Reliance Communications envisions a digital revolution that will bring about a New Way of Life. A Digital way of life for a New India.
With mobile devices, net ways and broadband systems linked to powerful digital networks, Reliance Communications will usher fundamental changes in the social and economic landscape of India.
Reliance Communications will help men and women connect and communicate with each other. It will enable citizens to reach out to their work place, home and interests, while on the move. It will enable people to work, shop, educate and entertain themselves round the clock, both in the virtual world and in the physical world. It will make available television programmers, movies and news capsules on demand. It will unfurl new simulated virtual worlds with exhilarating experiences behind the screens of computers and televisions.
Users of Reliance Communication’s full range of services would no longer need audiotapes and CDs to listen to music. Videotapes and DVDs would not be necessary to see movies. Books and CD ROMs would not be needed to get educated. Newspapers and magazines would not be required to keep abreast of events. Vehicles and wallets will become unnecessary for shopping.
Reliance Communications will disseminate information at a low cost. "Make a telephone call cheaper than a post card". These prophetic words of Dhirubhai Ambani will be a metaphor of profound significance for Reliance Communications. Reliance Communications will regularly unfold new applications. Continually adapt new digital technologies. Create new customer experiences. Constantly strive to be ahead of the world.
Reliance Communications will transform thousands of villages and hundreds of towns and cities across the country.
Above all, Reliance Communications will pave the way to make India a global leader in the knowledge age.
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1.4 Chairman's Profile
Anil Dhirubhai Ambani
Regarded as one of the foremost corporate leaders of contemporary India, Anil Dhirubhai Ambani is the Chairman of all listed Group companies, namely: Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources Limited.
Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), India's largest private sector enterprise.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company's management over the next 22 years.
He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country's first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.He is a member of :
Wharton Board of Overseers, The Wharton School, USA
Central Advisory Committee, Central Electricity Regulatory Commission Board of Governors, Indian Institute of Management, Ahmadabad Board of Governors Indian Institute of Technology, Kanpur
In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of India's Parliament a position he chose to resign voluntarily on March 25, 2006.
Awards and Achievements:
Conferred the 'CEO of the Year 2004' in the Platt’s Global Energy Awards
Rated as one of 'India's Most Admired CEOs' for the sixth consecutive year in the Business Barons - TNS Mode opinion poll, 2004
Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management Association, October 2002
Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001
Selected by Asia week magazine for its list of 'Leaders of the Millennium in Business and Finance' and was introduced as the only 'new hero' in Business and Finance from India, June 1999
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INTRODUCTIONTO
TOPIC
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INTRODUCTION TO THE TOPIC
LIFE CYCLE OF STD/PCO AND CCB CONNECTION
IDLE STATEOTAF (*228)]
[RECHARGE VOUCHER LOADING (*397)]
ACTIVE STATE(RCV VALIDITY AS PER THE DENOMINATION)
SUSPENDED STATE(FOR 15 DAYS)
INACTIVE STATE(FOR 15 DAYS)
ON HOLD STATE(FOR 60 DAYS)
EXPIRED STATE
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FEATURES OF STD/PCO AND CCB CONNECTION AT DIFFERENT STATES
STATE ACTIVE SUSPEND INACTIVE ON HOLD EXPIRED
FEATURE
OUTGOING YES NO NO NO NO
INCOMING YES YES YES NO NO
BALANCE FORWARD YES YES YES NO NO
RECHARGING DONE YES YES YES YES NO
*CODE DIALING YES YES YES YES NO
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Organisation Structure of PREPAID PCO and VPT SERVICES
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Mr. Gurpreet Singh(CEO-Reliance communication)
Mr. Jamal Khan(PCO Business Head-Rajasthan circle)
Mr. Bharat A. Singh(Circle Lead, Prepaid PCO,
Customer Care)
Mr. Manish Sanadhya(Manager,
PCO, Udaipur)
Mr. Manish Audichya(Sr. Manager,
PCO, Udaipur)
Mr. Abhishek Mathur
(Deputy Manager, PCO, Udaipur)
BASICS OF PCO BUSINESS
There are two types of PCO landline and wireless. Wireless PCO uses 2 kinds of technology-CDMA GSM. Reliance and Tata Indicom are CDMA based prepaid PCO connection provider and Airtel, Idea and Vodafone are GSM based prepaid PCO connection providers. MTNL, BSNL and Airtel provide fixed landline postpaid PCO connections.
Product – Traditional PCOTraditional PCO – STD (Subscriber Trunk Dialing Connection). STD PCO business
contributes substantial revenues. Average revenue per user (ARPU) of STD PCO is
more than 2 times that of CCB PCO
Reliance offers 2 kinds of STD PCO connections:
FWT STD PCO
It is a manned business
Billing machine is required to operate this category of connection that can generate bill
STD PCO needs an initial investments of Rs 4000 - Rs 5000
FWP STD PCO
No separate billing machine required
In built display and programmable MOU (Minutes of usage) monitor
Daily report feature for day summary of unit & time consumed
Detailed call records for 100 calls records.
PCO Business – Consumer perspective
PCO is a commodity with no differentiation between one company and the other.
The moment a customer sees a PCO , he goes there to make a call & does not search for
a particular company.
“JO saamne dikha wahan se phone kar liya”
The challenge for us is to be there in front of him when he wants to make a phone call.
This can be possible only if we are present at each & every outlet.
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RELIANCE PCO:-Launch of Reliance PCOs
According to the Latest TRAI Report the tele density in India is currently 39.86% in India. In other words it means that as much as 60.14% of the population is dependent on PCOs to make telephone calls. However, Reliance feels that the full potential of the access medium has not been exploited and therefore plan to aggressively develop the various services to reach out to the market. The entry of RIL PCO in the map of Indian PCO market is based on a game-plan of making services affordable and accessible to all.The company seeks to capitalize on the growth opportunities that it believes are available in the Indian PCO market and consolidate its position to be an integrated telecommunications service provider, with a focus on dedicated Customer services. With this objective in mind Reliance PCO(R PCO) hit the Indian market on 18th March 2004. There hasn’t been any advertisement done till date to create awareness among the Indian Public.Now instead of the prevailing PCO lines this company is providing a revolutionary FWT (Fixed Wireless Terminal) with a greater commission. This connection removes the traditional postpaid PCO system and is thoroughly prepaid. So no more standing in the long queues for depositing the bills. This prepaid connection is compatible with any brand of PCO billing monitor.
Reliance- No. 1 private sector PCO service providerReliance launched PCO services on 18th MARCH 2004. Reliance PCO has empowered and enriched the lives of more than 1.7 million small entrepreneurs all over India total network. Our 3rd Generation CDMA Network is presently spread across 4 lakh villages & 15,000 towns across 16 telecom circles covering 54 crore population in India and is growing on a daily basis.Business AssociatesOver 2000 satisfied entrepreneurs are part of the RELIANCE PCO familyLocal PresenceReliance PCO is present in 18 states across India which is divided into telecom circles & further in clusters.Every Circle has a Business Head who is responsible for the day to day business activities.Different terms used:CCB (Coin collection Box) - one of the product in the PCO industry.CDMA (Code Division Multiple Access) – Advanced technology used by Reliance for Telecom Application.FWT (Fixed Wireless Terminal) – External device for Receiving the Signal.FWP ( Fixed Wireless Phone) – Phone integrated with FWT.MDN (Mobile Directory Number) – Unique Communication number of customer.RCV (Recharge Voucher) – Voucher by which customer can load his prepaid account.STD (Subscriber Trunk Dialing) – One of the products in the PCO industry.
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Features of Reliance PCO
The Reliance PCO tariffs are equal to the Government tariffs (MTNL/BSNL) but it provides a higher commission within those tariffs.
Good Return on Investment through higher commission structure.
Based on prepaid payment method.[Prepaid is a payment method in which payment of money is made upfront through recharge cards for certain fixed talk time(usage)for a given period while in Postpaid for usage is made afterwards].
As one uses, charges get deducted-Online & Real time
Based on Intelligent Network (IN) platform, first time in India that a PCO product is being launched on IN platform.
PCO connection is through Fixed wireless Terminal (FWT).
Being wireless, reach (coverage) is excellent and installation is very quick.
Based on Recharge voucher: balance or expiry of validity date, whichever is earlier.
Self service to ensure that all customer needs are just a few buttons away.
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PCO MARKET
Facts-n-Figures
STD PCO booths as a franchisee model started in 1987.
Currently there are 19.24 lakhs PCOs in India.
There is a PCO in every 2 square kilometers.
Generates direct employment of about 1.7 million people.
Total PCO revenue at Rs.4,100 Cr. Contributes to 9% of total telecom revenues and 24% of long distance revenues.
Key Drivers Good Return on Investment through higher commission structure.
Entry of private operators.
Easy to set up and start PCO business.
Low operation/maintenance cost.
Dedicated Customer Care.
Additional revenue steams, viz.
Retail for prepaid cards and calling cards.
Sale of telephone connection.
Cyber Café.
Photocopying.
Employment opportunities.
Competent focus on PCO through dedicated team for acquisition and servicing.
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HOW RELIANCE’S PUBLIC CALL OFFICE WORKS?
RIL supports PCO connection through its FWT. The features of Reliance FWT are as follows:
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FIXED WIRELESS TECHNOLOGY (FWT)
Reliance presented revolutionary Fixed Wireless Terminal (FWT), a marvel of CDMA2000 (1X) technology. It gives a connection, which is far superior to the ordinary landline. This wireless telephone connection can be deployed for PBX (board lines) / KTS / cordless phone / parallel connections. What's more, being wireless, your connection remains unaffected by cable cuts, rains or similar other problems.
Business Strategy Reliance Infocomm’s strategic objective for its PCO business is to have a presence in circles having high telecommunications revenue potential, with a particular focus on high density business and industrial districts, and to become the leading provider of services to public call booth segment.To achieve this strategic objective, the Company plans to: Focus on capturing high revenue generating customers (i.e., public call booths) in our targeted markets; To focus the Company's marketing approach.To offer new and innovative value added services; and To provide superior customer service and quality fixed-line services to promote a high level of customer satisfaction and achieve customer loyalty.
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In very starting of this session I would like to focus on the term distribution thereafter I will state the description of distribution channels and what are the advantages and disadvantages of distribution networks what are the parameters of distributor and how a distributor work what problems he faces and what are the solutions.
Distribution of goods and services plays an important role in the sales system. Distribution system varies company to company and place to place. The distribution system gives strength to the company by helping to increase the reach of the product to various parts of the region, country or even in foreign markets an effective distribution system helps in making available goods in right quantity at the right time when they are required and giving a reasonable earnings to those who are associated with the distribution system.
Of all the living things on earth, ants are known to be the most hardworking. All of us would have seen ants scurrying along, one behind the other, transporting food from wherever they find it, to their dwelling places. Any obstruction in the path does not deter this little creature from moving forward. They quickly locate the most efficient path around the obstruction and once again resume their journey. Just as these little creatures transport that they need from where they are available to their destination or place of storage, in the business world too, goods and products are transported from the place of manufacturing to the places where they are required.
In the highly competitive business environment of today, companies find it difficult to maintain their competitive advantage over others only by developing innovative strategies pertaining to the product, prices, places or promotion though they have tried out various methods to build a competitive advantages for themselves like making changes in the product design ,pricing the product differently and even trying to reduce the cycle time. Thus the emphasis of all companies today is to build a sustainable competitive advantage and distribution system provides a means by which they can do just that.
Growth of telecom business is directly proportionate to the dealers network with the telecom companies provide a variety of incentives/commissions to the dealers/channel partner for encouraging them to acquire more and more business for telecom company . at the same time they are required to provide huge amounts towards marketing schemes, in their budget for attracting the customer to buy their products.
Now we will understand the term distributor or a LBA or a channel, a distributor or a LBA is the person who is authorized from the company to run the business, who helps the company to manage the sales and revenue. A distributor is the chain between company and customer.
Competition has begun and evolved with life. With resources being limited, competition among similar species has led to the vanquishing of one species by another and the extinction of species, the notable examples of being the dinosaurs. To survive every species need to have an inherent advantage over others of the same genus.
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The law of nature is applicable on business world too. Only those who displace their competitor can survive in the business. To have the benefit of this business world need to have something extra and unique advantage which can differentiate from others, these can be price, product, place, promotion or customer services which help to gain the lead over others.
First of all every business need to control over the manufacturing costs and in need to adopt the competitive pricing strategy. Every business can invent new marketing practices and methods to get the competitive advantage over others.To make their goods and services available to the end users at lover prices and better quality. To achieve this distribution or channels are very important. Every business must concentrate on the efficiency and performance of the distribution system and channel management.
Behind every service or product that a consumer uses has an integral part without that we cannot even imagine about the success of the product or service and that integral part is distribution system or a channel management.
The distribution channels is a set of interdependent individuals and organizations involved in the process of making a service available to the end users for consumption or use. These have evolved over time. The evolution is influenced by the marketing forces, which bring about the institutional change, reallocation of functions and changes in relationship among channel intermediaries. These complex things reshape distribution channel and play a dominant role in their growth.
Distribution system’s Roles
The key constituents of a distribution system are manufacturer or the company (Reliance communication), intermediaries and end user (in our case is it is the PCO owner). The term manufacturer or the company refers to the producers of the goods or services that is being sold. The distribution member negotiates with buyers on sales and merchandising terms.
Roles of channel members:-
Channel members perform various roles in their capacity as a medium of distribution of goods and services. Some roles that are performed by channel members are described below:
Facilitate the search process of buyer and sellers:- distribution member or channel member facilitate the search process of buyers and sellers and help reduce uncertainty in them. By making products and services available to end users, channel members lower uncertainty among the end users regarding product or services availability. In the absence of channel members or proper distribution System Company is too unclear about how to reach the end users. For example: in Reliance PCO Business the LBA is the distributor without whom we cannot deal or even cannot image about the business.
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Contractual efficiency:
In a marketing channel several relationship results from transactions or exchanges that occur between various channel members. A transaction in a distribution channel involves the product flow from the company to the end users same time money is flow in the reverse direction.
Helps in revenue generation:-
A distributor or a Local business associate is the only person who helps in generating the revenue by selling the product to the end users. If a distributor does not sell the product then revenue cannot be generated.
Helps in better functioning of the business:-
A distributor is the main component of a business. Without the distributor it becomes very difficult to manage the business. As the market is very large and to handle the business at the micro level a company must possess the appropriate distribution system.
Making the transactions routine:-
A proper distribution system helps out in solving the complexity of the business. Whatever the process a distributor adopts benefit will go to the company. Because it is very difficult to manage all transaction by company executive. To take the benefit at micro level a distributor is very essential part.
Helps in customer retention:-
A distributor is the middle man between the company and end user. He knows very well about the customer. He is well known about the paying capacity of the customer. He helps in customer relationship program.
Distribution functions:
Distribution function involves all the activities by means of which products flow from manufacturer to end users. During the flow the product goes from the company to the end users. Distribution functions play important roles in determining the distribution channels structure. As the product moves through different stages in the marketing channels, various members in the system plays different roles.
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Facilitate in the strategic aim of channel members:-
Marketing channel facilitate the strategic aim of channel members and help them in attaining the goals.
Fulfilling the interactions process:-
Marketing channel manage the ordering system, delivery timing and the availability of the products.
Market development:
Apart from making goods and services available to existing and potential customer and providing support services. The channel partner also helps in expanding the company’s business or market share by soliciting new business from customer.New customer accounts solicited by the channel intermediary add to the company’s market share.
Market information:-
Marketing channels can be a valuable source of information. As they directly interact with the customers, they provide valuable data on customer preference. However analyst feels that marketing channels are yet to reach the desired level of performance in providing market information
Inventory management:-
A proper distribution channel helps out in managing the inventory. The channels have to maintain a certain level of inventory so that they can meet with demand of the customer.
Risk taking:-
If the company itself takes the responsibility of distributing the goods there would be an exposure of risk such as physical damage of goods, theft or product obsolesces. Marketing channels by taking on the responsibility of these minimize the risk area.
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DISTRIBUTION STRUCTURE:-
Distribution system of Reliance PCO:-
In reliance communication distributor is known as a LBA (Local business associate). LBA is the person who looks after the business of the company; he generates the sales and revenue. Reliance manages its business by the help of LBAs. There may be certain different criteria to choose the LBA but in reliance communication it is different.
Process of selecting a distributor:-
In reliance, first of all the company executive makes a plan that where we will make the LBA, what would be the location, what would be the territory and so on? After selecting the location qualifications and other criteria is selected like the security amount, educational qualification, experience, contacts, goodwill, knowledge about the product and so on.
In reliance the security amount is 60000/-. The person who wants to take the LBA ship, he must be well qualified, he must have very good image as well as very good experience in related field. He should have a good office at the very good location which should be in the center of the city.
A person who fulfills these all requirements he is screened and thereafter the company that only who is best in these all aspect. Udaipur cluster work in eight districts and almost covers whole the south Rajasthan. And Udaipur cluster is on the top in the Rajasthan in PCO department which generate the revenue of around eighty LAKHS and the sale of PCO is more than 800 nos. in a month. This figure itself shows that Reliance is the market leader in the PCO business.
The LBAs of reliance PCO are much satisfied then the other company’s distributor. They have the full faith on the executive of the company. I have the very good experience of this that how to make the good image and win the confidence of the
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CONSUMERCOMPANY
DISTRIBUTOR
distributors. Whatever they promise by the LBAs they deliver it. This shows that a good image always helps to give the returns. That is the only reason of their great performance. Working style of the managers must be very simple and confidential there should not be any hidden thing.
We look at the following area:-
Sales Revenue
SALES:-
This is the major and important part where a company must pay attention. This important part covers the life cycle of the company. If the sales part is not well taken care then definitely there will not be any future of the company. in RELIANCE communication Udaipur we were very much concerned about the sales part. every month there is a different target and every LBA must achieve the target. we don’t take the target as the months ending activity where most of the company and individuals fulfill their targets in the end of the month. We divide the sales target on the very first day of the month and the target was made on the daily basis , so that it becomes very easy to cover it, and definitely our this strategy helps us in becoming the top performer. On the very first day the target letter of every LBA is made and a strategy is made. Reliance gives Rs. 900 on the sale of any product (it is for those LBA whose base is more then 500 customers and Rs. 700 to those whose base is less then 500 though he is just in the beginning phase of the business.
REVENUE:-
Second most important rather I can say that it is also as important as the sales, without this we cannot even imagine about the profit. Revenue generation is not an easy job, it is really very difficult. It is always difficult to get the money from the person. But a proper strategy and a proper planning with exact facts and figures made then nothing is impossible, and the Reliance PCO Udaipur is quite ahead then any other player. Due to the a proper strategy and planning we always achieve our targets. This is possible only by our LBA s.
We provide very good promotional schemes like wise normally company gives 2 % to its LBA s and if they achieve the 105 % of the target then company gives 4 % more and total they get 6%. This is very much lucrative and along with this there are also some more promotional schemes which are given time by time. Company also gives the PJP (permanent journey plan) which helps the LBA in tracing the customer.
Local Business Associate’s (LBA) Responsibilities:
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Reliance is doing its PCO sales through LBA’s (Local Business Associates).An LBA plays a mediator between the Customer (i.e PCO owners) and the Company (i.e Reliance).LBAs responsibilities are as follows:
Fills the Customer Application Forms (CAF) for booking a PCO Line for the interested PCO owners.
Within 24 hours of acceptance of CAF and payment realization.
Complaint log in:90% within 4 hours10% within 12 hours
Voucher Recharge delivery at PCO premises within 1 hour of Request log in
Enhanced Service levels, personalized services
Dispute Resolution
Customer Help line Availability of knowing the balance online
The Customer service to the PCO operator is the critical differentiating factor between Reliance and the competition.
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Booking of PCO line
Installation of FWT
Fault Repair
Voucher Management
Relationship Management
Customer Delight
For these services the LBA is given a 2% commission on all recharge coupons sold by him.
Process of work:-
LBA (local business associate) is the main authority which is directly authorized by the company, he gets the right of running the business in the supervision of the company, he sales he generates the revenue and he is only the prime person who is responsible for that. He generally keeps three FOS (feet on street). The term FOS itself shows the meaning of the word. it is related with the person who work for the LBA. one FOS work to generate the sales another work for the recharges and third may sit in the office and can work on the PJP and can remind the customer for recharges.
Discontinue the service of the LBA:-
If any LBA does not work according to the company’s profile then company has the right of discontinuing the LBA ship. It simply means that when the LBA does not fulfill the required targets and does not sale according to the targets given then definitely company will discontinue the LBA Ship after giving the notice. Company will map his area to other distributor after fulfilling certain conditions.
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LBA
FOS FOS FOS
Tools For LBA Handling
LBA or Local business Associates are the dealers or representatives of Reliance
Company which are made by the company.
They are responsible for the sale in particular areas as allotted by the
company. The LBAs are having the manpower which are doing the sale work, repair of
the PCO instruments, etc.
So the dealer is the bridge between the company and the pco operator. They do
the selling of recharge vouchers too. They are in the direct contact with both the
company and the pco operator. The work of the pco operator is done through them only
in the company.
But for efficient working the company has some tools too by which the LBA’s are
handled hassle free and that the customers of the company are retained and revenue is
generated.
Few of these tools are:-
Non Active Review Sheet- which shows the distributor wise distribution of no. which
are going to lapse.
Revenue Tracker-shows what is the target given and till that how much has been
achieved.
Commission Schemes-schemes on no. of new connections and old connections
retained(net).
Schemes on Recharge-schemes like coupons at discounted price and commission on
value recharging. etc..
.
An example of the review sheet and revenue tracker have been given here on the next
page.
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Non Active Review Sheet
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REVENUE TRACKER
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Udaipur cluster of RELIANCE COMMUNICATION STD/PCO comprises of LBA’S covering seven (07) districts with town office at Udaipur city.
S. NO. LBA NAME LOCATION SIGNED PLACE
1 ADINATH GAS AGENCY SAGWARA UDAIPUR2 AGRAWAL TELECOM JAHAZPUR BHILWARA3 RUSHDA SERVICE CENTER UDAIPUR UDAIPUR4 BALAJI COMMUNICATIONS GULABPURA BHILWARA5 CHANDRA INFOCOMM UDAIPUR UDAIPUR6 CHIRAG ABUROAD UDAIPUR7 D M COMMUNICATION SIROHI UDAIPUR8 DAMODAR MEDICAL STORE DEOGARH UDAIPUR9 DARSHAN ENTERPRISES MAVLI UDAIPUR
10 DHANLAXMI COMMUNICATION SIROHI UDAIPUR11 JAIN TELESOLUTION BHIM UDAIPUR12 KRISHNA ENTERPRISES CHITTORGARH CHITTORGARH13 KRISHNA SOAP & COMMUNICATION BHILWARA BHILWARA14 KUN ENTERPRISES BEGUN CHITTORGARH15 Life Time Network RAJSAMAND 16 MAHESH ENTERPRISES PRATAPGARH CHITTORGARH17 MAHESH MOBILE SHOPEE GHATOL UDAIPUR18 MAHI ENTERPRISES SHAHPURA BHILWARA19 MATESHWARI ENTERPRISES NIMBAHERA CHITTORGARH20 NAKODA COMMUNICATION BANSWARA UDAIPUR21 NAV DURGA AGENCIES MANGALWAD UDAIPUR22 NEW LIFE TIME NETWORK RAJSAMAND UDAIPUR23 PAREEK COMPUTERS & COMMUNICATIONS VIJAY NAGAR BEAWAR24 PREET COMMUNICATION GANGAPUR BHILWARA25 R D COMMUNICATION BHILWARA BHILWARA26 R K TELECOM BHILWARA BHILWARA27 RISHABH COMMUNICATION DUNGARPUR UDAIPUR28 ROOPVARSHA CHOTI SADRI CHITTORGARH29 RUSHDA COMMUNICATION UDAIPUR UDAIPUR30 SANDEEP COMMUNICATION KHERWARA UDAIPUR31 SHIV GENERAL STORE ABUROAD UDAIPUR32 SHIVAM SELS PINDWADA UDAIPUR33 SHREEJI CYBER WORLD NATHDWARA UDAIPUR34 SHRINATH & SHRINATH BHILWARA BHILWARA35 TELECOM WORLD BEAWAR BEAWAR
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ANALYTICAL FRAMEWORK OF
RESEARCH
RESEARCH & METHODOLOGY
1. Objective of the study
A) Primary objectives: A comparative study of STD/PCO service providers
with Reliance STD/PCO
2. Preparation Of Research Deign:
A research design is the arrangement of the condition for collection & analysis
of data. Actually it is blue print of research project. The research design is
follows: Exploratory Research
3. Data Sources:
The data collection process was carried out in various stages. These stages can
be clubbed two major heads.
(A) Primary source- Schedule and observation
A random survey was carried out according to my convenience while going
out to contact the respondents. As most of the pco operators are uneducated
or having less knowledge so questions were asked to them and schedule
were filled by me.
(B) Secondary Sources:TRAI Website
4. Data collection techniques:
The data was collected through schedule and observation...
(A).Schedule: The data was collected through open and closed ended schedule,
in which question were asked in a logical order. Each question has a specific
meaning. The data analysis is based on the data collected through these questions.
(B)Observation: For making the clusters firstly observation cm survey was
carried to see which \all areas are of prime importance.
5. Market Segmentation (cluster):
The market segmentation was done keeping in mind that what is the usage or
the revenue generated by that pco area.
The cluster that was made are as follows.– Savina Sukher– University road Durga nursery– Bhuvana MallaTtalai– Hathi Pole Fatehpur
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– Bedla Pratap nagar
6. Sample design: Sample design refers to the techniques as the
procedure that a researcher would adopt in selective items for sample.
A. Target Population or Sampling Unit: The universe for the research is
Udaipur city.
B. Sample Size: 100 respondents.
Clusters-10 No. of Pco from each cluster:-10
C. Sample Procedure:
Sample procedure used in the project is non probability sampling. The
required information was collected through convenience and purposive
random sampling.
7. Data Analysis & Interpretation:
Analysis of data was done by drawing inferences through what was
collected as input from the respondents. The data analysis & interpretation
part is detail in the following pages.
8. Limitation:
• area of the research was very large, which cant be covered nay how
• time limits for the research, time was very short.
• communications barriers which refuse to show all the information in the right manner
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DATA ANALYSIS &
INTERPRETATION
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Average score of RELIANCE STD/PCO SERVICES in Udaipur region along with comparison with competitors-
(Performance on a 10 point scale)
MY PROJECT AIMS AT SUSVEY ON:-
Performance analysis of “RELIANCE PREPAID PCO SERVICES” versus other
leading competitors in Udaipur region.
Here the mapping of brands is done on 12 reference points
1) Timely recharge reminder call by the service provider.
2) Timely information about promotional scheme.
3) Service quality to customers
4) Connectivity by the service provider
5) Voice Clarity by the service.
6) Call quality
7) Commission provided to customers.
8) Technical support to customers
9) Additional feature provided by service provider
10) Customer care service.
11) Dealer representative visit.
12) Advertisement material provided by service provider to customer.
On the above reference point’s survey was conducted by me in Udaipur region on
PCO/CCB user.
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COMMISSION PAID
The above graph clearly reveals that Reliance network offers the Maximum Commission to its retailers. The nearby competitors are Vodafone and Idea.
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Commission paid to pco operator
30%25%
38%32%
20%
35% 35%
0%5%
10%15%20%25%30%35%40%
AirTel B S NL R eliance MTS Tataindicom
Vodafone Idea
INITIAL INSTALMENT COST
The above graph indicates that in the field of cost effectiveness Reliance ranks 3rd after BSNL and MTS. But if seen practically MTS is in its growth stage and most of the retailers do not prefer BSNL due to improper network coverage and many other formalities. Therefore it can be concluded that Reliance provides good cost effectiveness to the retailers as compared to other competitors in the market.
INCENTIVES AND SCHEMES
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Initial Cost(in Rs.)1900
10001250 1050
1500 1500 1500
0500
100015002000
AirTel B S NL R eliance MTS Tataindicom
Vodafone Idea
86
9
56
7 7
02468
10
AirTel B S NL R eliance MTS Tataindicom
Vodafone Idea
Reliance is the best performer in the case of providing schemes and Incentives to its retailers.
The other competitors are Airtel, Idea, and Vodafone.NETWORK CONNECTIVITY
The studies show that reliance ranks third in terms of Network Connectivity after Airtel and BSNL.
CALL/VOICE QUALITY
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9 98
56 6 6
02468
10
AirTel B S NL R eliance MTS Tataindicom
Vodafone Idea
8
5
8
6 67
6
0123456789
AirTel B S NL R eliance MTS Tataindicom
Vodafone Idea
In terms of Call/ Voice quality Both Reliance and Airtel are in Stiff competition to each other for the first rank. Recently Reliance has introduced digital quality signals in its networks which have further enhanced its Call/Voice quality and since Airtel has stopped the pco business so reliance has chances to excel
SUPPLY OF RECHARGE VOUCHERS
The above graph shows that Airtel and Tata Indicom are the best Performers in terms of Recharge Voucher supply. Thus they are able to serve the maximum customers and prevent the cases when
The PCO is out of service.
DEALER VISIT
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7
56
76
5
0
2
4
6
8
AirTel B S NL R eliance MTS Tataindicom
Vodafone Idea
9
5 5 56
76
02468
10
AirTel B S NL R eliance MTS Tataindicom
Vodafone Idea
In terms of Representative Visit Airtel ranks first with the Best relationship with the dealers. Whereas reliance is far behind and ranks Fifth sharing this rank with BSNL and MTS. CUSTOMER CARE
Customer Care Rankings
65
8
6 67
6
0123456789
Reliance is providing best customer care services .the major competitor is voda phone in this area.
TECHNICAL SUPPORT
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Technical support
65
4
67
5
7
012345678
Tata Indicom and Idea are leading in providing best technical support to
their customers. Reliance is last amongst all in this area.
ADVERTISEMENT MATERIAL SUPPPLY
Advertisement Material supply
7
5
2
6
87
5
0123456789
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This is another feature on which reliance has to give consideration and
increase its advertising activity.
TIMELY INFORMATION
Timely Information
64
7
5
78
5
0
2
46
8
10
The major competitor in this area is vodaphone. Reliance has comparatively good position amongst the other competitors.
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SWOTANALYSIS
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The areas where Reliance has advantage:-
• Big Brand Name attached to it of RELIANCE ADAG Group which
gives the customers a sense of security and safety.
• Reliance is giving the highest Commission to its PCO operators in
comparison to other competitors, not only on per call but also on
recharge coupons, retention of old customers etc
• You can start a new Reliance STD connection at a very low initial
investment cost which makes the product widespread and preference to
operators.
• From time to time Reliance launches various offers & schemes fro the
dealers, pco operators giving them the opportunity for winning cash
rewards, gift coupons, holiday packages etc.
• Due to the advanced technology the call quality is very clear and loud,
disturbance free, giving the operators an advantage to attract customers
for hassle and distortion free talk and getting full value for money.
• The connectivity means the areas where the Reliance PCO is setup has
full connectivity or network coverage.
• The customer care wing of Reliance is available 24 hrs and 365 days to
solve any problems of the operators be it be of swapping, recharge
coupon faults, or any other. Along with it the city office also has a
devoted executive dealing only with the customer care area of operation,
which acts like a bridge between the company and the pco operator.
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• The PCO operators are time to time informed by the latest offers and
schemes and also that on which date their balance is going to lapse,
when their pco connection service is going to expire etc. which helps
them to purchase the recharge coupon well in advance so as not to
hamper their business.
The major areas where Reliance is lacking:-
•The major lacking in the Reliance is of shortage of Advertisement materials to
the operators due to which they are not able to make people aware that they
have pco facility, which in turns hampers their business.
•The recharge voucher are available only by the dealer(LBA) to the operators,
which acts as a negative point as they charge different prices to different
operators and also sell in black.
•Currently there is no support for the technical part to the operator on the behalf
of company. Only the persons of dealer are dealing with their problems and
solving out, but they are not much educated and does not possess much
technical knowledge.
•Although Reliance is a new player in this field but then also it has set up huge
network reach but still there is a need to expand the reach to more widespread
areas
•The operator is connected with the company with the help of dealer only. No
work of operator can be done without the help of dealer. This results into a
monopoly type position, where dealer acts when they feel like. Many times
they do not provide services or vouchers to the operators on time.
Opportunities:-
• The growth of the market is rapidly increasing which can give a vary fruitful
business to reliance communication.
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• Changes made with the changing environment of market by the reliance can
play a vital role in the survival in future.
Threats:-
• the increasing compition is a big threat for the market of the reliance.
• Many MNC’s are entering in this market whit new technology.
•
• CONCLUSION
• &
• RECOMMENDATIONS
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• Proper maintenance of records that which no. is going to lapse on which date,
what was the last date the operator recharged etc.
• Company should also sell directly both the pco connections as well as recharge
vouchers so that monopoly and unfair practices should be stopped.
• Personalized phone instruments like that the company goes into tie-up with any
company and produce instruments for the operators.
• Technical Support from Company side by experienced and highly qualified
technicians.
• Effective & efficient dealer representation has to be done, by forcing and
imposing fine on the dealers by fixing their targets of both retention and new
connections.
• To Launch Scheme like Bonus Talk Value, Talk Time so that the operators do
more recharging and company gets more revenue and more sale.
• In order to increase the customer satisfaction level the prominent factor is from
“Dealer Side”. If dealers of RELIANCE STD/PCO services increases visits to
customers and provide adequate technical support to PCO/CCB users, then
customer satisfaction level will definitely increase.
• “Maintain Service /Call/Customer Care qualities” of RELIANCE. RELIANCE
is leader in market through its “Excellent Call And Service Quality compared to
competitors in the row. So this should be maintained so as to enhance customer
satisfaction level of users.
• Another important factor for increasing customer satisfaction level is to provide
“Advertisement Material To Customers”. This will not only provide customer
satisfaction but also act as promotional tool to draw more sales.
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• As RELIANCE is leader in the market with regards to its service quality but it
lack in giving customer the so called “after sales service”. Now this after sales
service is to be given by RELIANCE LBA’S to the customers.
• “MONTHLY CUSTOMER SERVICE CAMP” will allow the customer to come
and enquire about the features, express there problems, on the other hand it is
equally important for the company as it will enable to find the loop holes, ideas
of new scheme to be launched in market, sensing the behavior of customer.
• Such activities will also trigger the sales figure as more and more people come
to know about the existing features of RELIANCE and this will allow them to
compare brand with other, and as we RELIANCE is having a very high quality
service so definitely ball will be in our court.
• Advertisement material provided to customer is a very important issue that
should be considered by RELIANCE on urgent basis. Customer has taken
connection for earning money and hence he requires adequate and suitable
advertisement material to display its product/service. Customers have strong
dissatisfaction towards service provider for not providing enough of
advertisement material to them, and competitor is taking this is an opportunity.
Company should provide “BANNER WITH SHOP NAME AND RELIANCE
LOGO” to the customers, so as to reduce the dissatisfaction level.
“LARGE SIZE GLOWSINE BOARDS” can be provided to two categories of
customers….
Customers who’s Average Revenue Per Unit (ARPU) crosses a
considerable figure for the last couple of months and the shop earns revenue
mainly from telecom services.
Customer who demands for it and ready to pay certain share of money
for that, here the glow sine board will remain property of RELIANCE and will
be taken back as the customer disconnect the connection within a time period.
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ANNEXURE
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“Mobile STD/PCO-Comparative Performance Analysis
in Udaipur city
Shop name……………….…………………..Contact Person………………..………………Address………………………………............................................ ……………..................... Area ………………................... …………… Ph No………………………Date :-…….…... ScheduleQ-1) Type of service- A) PCO B) COIN BOX
Q-2) Type of STD/PCO service used-A) RELIANCE B) BSNL C) Vodafone D) TATA INDICOM E)MTS F) AIRTEL
Q-3 ) Term of using service- A) RELIANCE……. B) BSNL……. C) Vodafone…. D) TATA INDICOM……… E)MTS……. F) AIRTEL……
Q-4) Commission (%) awarded- A) RELIANCE……. B) BSNL……. C) Vodafone…. D) TATA INDICOM……… E) MTS……. F) AIRTEL……
Q-5) Availability of recharge vouchers- A) AVAILABLE ON DEMAND (RIL/SHY/AIR/BSNL/TATA/VODA) B) SHORTAGE (RIL/SHY/AIR/BSNL/TATA/VODA)
Q-6) (10 point scale)9-10 = Excellent 7-8 = Good
4-6 = Satisfactory 1-3 = Poor
Service Characteristics
RELIANCE BSNL TATA INDICOM
MTS AIRTEL VODAFONE
Timely Recharge Reminder Calls Timely information About promotional Scheme.
Monthly Billing/ RCV
[[
Customer care
Service Technical SupportQuality Advertisement Material Supply
Timely Information
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Comments……………………………………………………………………………………………………………………………………………………………………………….
BIBLIOGRAPHY
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References
Website:-
www.reliancecommunication.in
www.trai.gov.in
Search Engine:-
www.google.in
Books:-
Kothari, C.R., Research Methodology
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