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“TELECOM SERVICES OF RELIANCE COMMUNICATION’’ PROJECT REPORT
Submitted for Partial fulfillment for The Award of the Degree of
Master 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
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
Director Mr.Amit Gupta
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” under the guidance of Prof. KISHAN.
Under Guidance Prof. Kishan
CONTENTS Chapter – 1 Introduction Concept of Reliance communication An Overview of current Market Scenario Brief Study of the Organization Organizational Set-up Main Studies Introduction of the Topic Apply Six Sigma The problems being faced What does Company expect to do by solving the problem
Chapter – 2
Chapter – 3 Methodologies Research problem Research Objective & sub- objective Information Requirement Choice of Research Design Research Instrument used Sampling Technique used & Sample size Chapter – 4 Data Analysis & Interpretation Data Interpretation & Finding of customer Survey Market share of mobile subscribers Performance Snapshot Conclusions Conclusion Finding Suggestions Appendices Bibliography Questionnaire
Chapter – 5
Chapter – 6
I would like to express my sincere thanks to all those instrumental in this project Work. First of all, I would to thank Prof. Amit Gupta Director of International School of Business & Research for giving me this opportunity to do this project and learn from it. I am thankful to Reliance Communication Ltd for giving me helpful information to complete 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 relevant information about the product and service. My heart full thanks to the whole staff and customers (Corporate) of Reliance Communication Ltd, who gave me continuous support in every possible manner to gain practical knowledge in Industry. Finally I would like thank all lecturers, friends and my family for the kind of support and to all who directly or indirectly helped me in preparing this project report and special thanks to website- www.rcom.co.in.
Date: Place: Bangalore
A project is a scientific and systematic study of real issues on a problem with the application of management concept and skills. The study can deal with small or big issues in any division of an organization. It can be case study where a problem has been dealt with, through the process of management. The essential equipment of a project this that, it should contain scientific collection of data, analysis and interpretation of data leading to valid conclusion. Project is an essential part in MBA curriculum. It enables the student to share the real experience in industry & Market. My project has placed in Market Research. The topic of my project was TELECOM SERVICES OF RELIANCE COMMUNICATION. This project report tends to give a sharp picture of the telecom industry. I hope, this study can be of some help to the telecom industry of his product and service
CHAPTER - 1
Concept of Reliance communication An Overview of current Market Scenario Brief Study of the Organization Organizational Set-up
(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 eminent professionals from the telecom field, met in Delhi in June to choose the Telecom Person of the Year 2007, the five-hour selection process was steamy. The reason was obvious: The telecom sector is growing faster than any other segment and naturally their CEOs have a lot to crow about. The jury had to select one from three CEOs, who had made it to the final list through nominations from the industry and the initial scrutiny. Among the three, one of the main contenders was a young CEO. The jury decided that he should come back next year to try and win the coveted award. 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 so popular, 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. Anil Ambani joined Reliance Industries (currently promoted by his brother Mukesh Ambani, following their split) in 1983 as co-chief executive officer. Forbes ranked him number 104 among the World's Richest People in 2006. The Ambani family faced criticism when it announced its ambitious plans to build a countrywide telecom network, as its prior expertise lay in commodities-textiles and petrochemicalsbusiness 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 of shareholders. Policies in India are made in line with Ambani's vision, says an industry expert. His business acumen and closeness to politicians assisted him in making it to the Rajya Sabha in June 2004, as an independent member. Ambani chose to resign voluntarily on March 25, 2006.
The same association with politicos gave him negative returns too when the Mayawati Government in Uttar Pradesh put a spanner on his ambitious plans to build a 1,200-acre SEZ. Media sees his aggression when he announces financial results for the Reliance ADA group of companies, and when he attends the annual general meetings and faces questions from shareholders. When he meets the press, he has answers to all their questions. He also remembers to call select journalists by name. To merchant bankers he, who has already contributed immensely to the financial reforms of the country, is one of the financial wizards of the world. May be because of his expertise, he gave up in the race to grab Hutchison Essar stake, after indirectly jacking up the valuation. His negotiations with the Qualcomm chief are also a folk theory now. How did Ambani become the VOICE&DATA Telecom Person of the Year 2007? What are his personal and organizational achievements in the recent past? His path-breaking marketing strategy that was put in by the strongest team of telecom professionals the country has ever seen has made millions of Indians happy as they got the best mobile tariffs in the world. The aggression resulted to adding to his already swollen kitty. Every hour India will be adding around 20,000 new mobile customers and Reliance Communications over 4,000. When mobile telephony first began in India, a local call cost Rs 16 per minute; an STD Rs 50; and a call to the US Rs 100 per minute. With Reliance Communication’s pioneering price initiative, a local call now costs a mere 15 paise per minute, STD 40 paise, and a call to the US costs less than Rs 2 per minute. The presence of Reliance Communications is making the competition in India panicky. Global telecom forces will also shortly start feeling the heat. Ambani has also recently announced his Rs 1,200 crore buyout of Yipes Holdings. Achiever's Pride
• • • • • • •
Undertook financial restructuring of Reliance communications To spend Rs 16,000 crore to expand and strengthen network coverage After expansion, Reliance Communications will have the single largest wireless network in the world Launched the lowest-cost classic brand handset at Rs 777 Subscriber base grew to over 28 mn during last fiscal, registering 60% growth Total Revenue shot up to Rs 14,468 crore, an increase of 34% Net Profit rises to Rs 3,163 crore, an increase of over 600%
• • • • • •
Revenues of the wireless business increased by 46% to Rs 10,728 crore Broadband achieved revenue growth of 123% to Rs 1,144 crore Market capitalization crossed Rs 100,000 crore Will add 23,000 more towers Telecom services will be available in over 23,000 towns and 600,000 villages Next generation DTH network will be launched before end of the year
Reliance Communications' wireless subscriber base grew to over 28 mn last fiscal, registering a 60% growth. This makes it one of the top two wireless operators in India. "Economic growth in the future will be indexed to connectivity of millions of enterprise and individual customers. Over the next few years, we will have over 100 million customers, making us one of the top 5 telecom players in the world. In four years, we put up a total of 14,000 towers across the country. This year alone we will add 23,000 more towers. Our wireless network is currently available in 10,000 towns. By the end of this year, it will be available in over 23,000 towns and 600,000 villages," Anil Ambani said at the first annual general meeting of Reliance Communications since the re-organization of the Reliance Group in June 2005. "In four years of operations, we invested around Rs 32,000 crore. This year alone we will invest over Rs 20,000 crore. At the end of this year, we will have covered over 90% of our population. If Version 1.0 of the Indian telecom story was all about affordability, Version 2.0 will be about reach. Our
Network expansion will give us the power to drive the market and stay ahead of the curve," Ambani adds. According to Ambani, the financial restructuring of Reliance Communications is the biggest turnaround story in the history of corporate India. The inherited ownership structure of Reliance Communications was complex. The reorganization has yielded a simple, fair, and transparent ownership structure, and given Reliance Communications 100% ownership of all operational and associate companies. Reliance Communications is now among the three most valuable private sector companies in India, and the five most valuable telecom companies in Asia. In the current
Fiscal, Reliance Communications will spend Rs 16,000 crore to further expand and strengthen its network coverage across India and the rest of the world. In addition to organic growth, Reliance Communications will leverage the advantages derived from this impressive financial platform to explore and pursue any significant opportunities available in the telecommunications sector. "We are currently evaluating a number of inorganic opportunities in select international markets to further expand our footprint," Ambani said. Reliance Communication’s One India, One Tariff plan allowed millions to connect across India at just one rupee a minute. The company was the first one to break the Rs 1,000 entry-barrier with the launch of the lowest-cost classic brand handset at Rs 777. As per its expansion plan, Reliance Communications will have the single largest wireless network in the world, covering over 900 mn Indians or more than 15% of the global population. It will cover 23,000 towns or every single Indian habitation with a population of over 1,000. Reliance Communications will cover almost 100% of all rail routes, providing seamless voice, video, radio, and Internet connectivity to 14 mn commuters every day. It will also cover almost 100% of all national highways, and 84% of all state highways, giving millions of users the power to talk, text, surf, play, chat or simply stay in touch across nearly the entire length of India's 2,00,000-km-long road network. Having achieved tremendous growth, the main challenge for Reliance Communications is to improve quality of service and ARPU. Its enterprise business is also not in a position to compete with the global majors. Stock market valuations may boost the fortunes of an entrepreneur, but Ambani needs to address the issues faced by the growing mobile customer base, especially in India, where bureaucracy takes pride in checking the businessman.
(2) AN OVERVIEW OF CURRENT MARKET SCENARIO
Reliance Communications (formerly Reliance Communications Ventures) is one of India's largest providers of integrated communications services. The company has more than 20 million customers and serves individual consumers, enterprises, and carriers, providing wireless, wireline, long distance, voice, data, and internet communications services through a number of operating subsidiaries. The company sells communications and digital entertainment products and services through its chain of Reliance Web World retail outlets. The company's Reliance Infocomm subsidiary provides wireless communications services throughout India. Reliance Communications 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 Reliance Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of 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. Today, Reliance Communications is revolutionizing the way India communicates and networks, truly bringing about a new way of life. We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India. 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.
(3) BRIEF STUDY OF THE ORGANIZATION Chairman’s 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 a customer base of over 36 million including close to one million individual overseas retail customers, Reliance Communications ranks among the top ten Asian Telecom companies. Its corporate clientele includes 600 Indian, 250 multinational corporations and over 200 global carriers and owns and operates the world's largest next generation, IP enabled connectivity infrastructure, comprising over 150,000 kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region. Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources. He is also the president of the Dhirubhai Ambani Institute of Information and Communications 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 country’s first forays into overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Under his chairmanship, the constituent companies of the Reliance ADA group have raised nearly US$ 3 billion from global financial markets in a period of less than 15 months. Shri Ambani has been associated with a number of prestigious academic institutions in India 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
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 the Nation 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 a global leader in many of its business areas, December 2001
Selected by Asiaweek magazine for its list of 'Leaders of the Millennium in Business and Finance' and was introduced as the only 'new hero' in Business and Finance from India, June
(4) ORGANIZATIONAL SET UP
Reliance Communication Limited CHAIRMAN
PRESIDENT (PRESONAL BUSINESS) SENIOUR V.P V.P GM DGM PRESIDENT (ENTERPRISES BUSINESS) PRESIDENT (HOME BUSINESS)
AGM SENIOUR MANAGER MANAGER DUPTY MANAGER ASST. MANAGER MANAGEMENT TRAINING
CHAPTER - 2
Introduction of the Topic Apply six sigma The problems being faced What does Company expect to do by solving the problem
(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 an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity), SWOT analysis is a general technique which can be applied across diverse functions and activities, but 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 take account of internal resources and capabilities (strengths and weaknesses) and factors external to the organization (opportunities and threats). SWOT analysis can provide: A framework for identifying and analyzing strengths, weaknesses, opportunities and threats. This checklist is for those carrying out, or participating in, SWOT analysis. It is a simple, popular technique which can be used in preparing or amending plans, in problem solving and decision making. Illustrative diagram of SWOT analysis If SWOT analysis does not start with defining a desired end state or objective, it runs the risk of being useless. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is SCAN analysis. Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.
Strengths: attributes of the organization those are helpful to achieving the objective. Weaknesses: attributes of the organization those are harmful to achieving the objective. Opportunities: external conditions those are helpful to achieving the objective. Threats: external conditions that is harmful to achieving the objective.
SWOT analysis can be used for all sorts of decision-making, and the SWOT template enables proactive thinking, rather than relying on habitual or instinctive reactions. The SWOT analysis template is normally presented as a grid, comprising four sections, one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats. The free SWOT template below includes sample questions, whose answers are inserted into the relevant section of the SWOT grid. The questions are examples, or discussion points, and obviously can be altered depending on the subject of the SWOT analysis. Note that many of the SWOT questions are also talking points for other headings - use them as you find most helpful, and make up your own to suit the issue being analyzed. It is important to clearly identify the subject of a SWOT analysis, because a SWOT analysis is a perspective of one thing, be it a company, a product, a proposition, and idea, a method, or option, etc. Here are some examples of what a SWOT analysis can be used to assess:
• • • • • • • • • •
a company (its position in the market, commercial viability, etc) a method of sales distribution a product or brand a business idea a strategic option, such as entering a new market or launching a new product a opportunity to make an acquisition a potential partnership changing a supplier outsourcing a service, activity or resource an investment opportunity
RELIANCE COMMUNICATION LIMITED
Strength • Low Entry Cost • Commission Structure • Fast Activation Process • Network • Connectivity • Data GPRS
Weakness • Branding Image • Distribution problem • Limited product portfolioOnly Mobile • Lack of Competitive Strength • Limited Budget
Opportunity Threat • Preference of GSM over • Political destabilization. CDMA • New Entrants • New Specialist Application • IT Development • Rural Telephony • Market Demand • New Market, Vertical, • Seasonality, Weather Effects Horizontal • Competitors` Vulnerabilities
APPLY SIX SIGMA:
SALES PERSON ARE [Fishbone diagram]NOT WELL EDUCATED
WAY OF SELLING NOT PROPER
(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 doesn’t get claim at proper time • No visit of TSM or any other person to the retailer’s shop
(3) WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE PROBLEM • Customer Satisfaction • Retailer Satisfaction • Increase in Sale • Sales Promotion • Proper Distribution Channel
CHAPTER - 3
Research problem Research Objective & sub- objective Information Requirement Choice of Research Design Research Instrument used Schemes, Products & Sample size
(1) RESEARCH PROBLEM
Collection of Data of other companies –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 Ill as the demand of Rcom Bachat pack Sim in the market To help in development and introduction of new product To identify the company position among competitors To determine those factors which persuade retailers for sale of RCOM sims/product To find out which type of schemes retailers prefer and why? To study the effect of irregular supply on the sale of the product
(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
(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)
(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
84.66 102.35 111.25 200.25 249.20 467.25 578.50
15 DAY 15 DAY 15 DAY 30 DAY 30 DAY 30 DAY 30 DAY
1.25 1.20 1.20 1.10 1.10 RS. 0.40 FREE RS. 1.00 RS. 1.00
RS. 225 RS. 280 RS. 525 RS. 650
PRODUCTS FOR THE MONTH OF JULY 2008 TOP UPs
Rs. 55 Rs. 77 Rs. 210 Rs. 310 Rs. 510 Rs. 195 Rs. 496 Rs. 35 Rs. 79 Rs. 49 Rs. 99 Rs. 98 Rs. 250 FULL T.T of 55 (off net 43+on net 12) FULL T.T of 77(off net) TALK TIME of Rs. 222 (off net) TALK TIME of Rs. 333 (off net) TALK TIME of Rs. 555 (off net) 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) FREEDOM TARIFF, TALKTIME Rs. 147.5 AND VALIDITY 30 DAYS F.T, TALKTIME RS. 888 AND VALI. OF 8 MONTHS
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)
UNRs. 499 LIMITED
500 LOCAL SMS FREE & VALIDITY 30 DAYS
RELIANCE MOBILE HAND-SET MOBILE RD LG 3000 RD LG 3500 RD LG 3600 RD LG 6100 CUSTOMER PRICE 1199/1299/1799/2699/RETAILAR PRICE 1165/1265/1690/2540/-
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 Data Source Research Instrument Type of Questionnaire Sampling Unit Sampling Method Contact Method Descriptive Research Primary Data Questionnaires Structured Retailer Judgmental Personal Interview
CHAPTER - 4
Data Analysis & Interpretation
Data Interpretation & Finding of customer Survey Market share of mobile subscribers Performance Snapshot
(1) DATA INTERPRETATION OF CUSTOMER’S SURVEY
Age group – Tabulating in percentage the age group of customers
Age Group 18-25 28-35 36-45 Above 45
Percentage (%) 25 47 22 6
50 45 40 35 30 25 20 15 10 5 0 Percentage (% )
18-25 28-35 36-45 Above 45
Above figure shows that researcher having surveyed 18 respondents, 25% belong to age group 18-28%, 47% belong to age group 28-35%, belong to age group 36-45 and 6% above age of 45.
Income Level Tabulation
Income Group 8000 8000-12000 12000-20000 > 20000
Percentage (%) 42 34 18 6
45 40 35 30 25 20 15 10 5 0 Percentage (% ) 8000 8000-12000 12000-20000 > 20000
The above analysis shows that 42% of the respondents belonged to the 8000/- and below income category, 34% belonged to Rs.8000 to 12000 and 18% belonged to 12000-20000 And 6% above income of 20000/-.
Percentages of customer who are prospective take of a particular service
company AirTel RIM BSNL IDEA Vodafone Virgin
Percentage (%) 40 5 25 2 31 2
It was found in the survey that 55% of the respondents intended to purchase either AirTel or Rim services in the future. Out of this 55% more than ½ (that is 30% of the whole sample size) intended to purchase AirTel and 25% intended to purchase RIM
Scaling About RCOMM Service
scale Very good Good Satisfactory Poor Can’t say
Percentage 20 25 40 10 5
P e rc e n ta g e
40 35 30 25 20 15 10 5 0 V e ry g o o d G ood S a tis fa c to ry P o o r C a n ’t s a y P e rc e n ta g e
The survey revealed that 40% of the respondents service RIM as satisfactory. This is a telling comment. However the survey also found out that 20% and 25% of the respondents service RIM as very good and good respectively. There were 5% of the respondents who had nothing to say about the RIM. This is due to low service awareness and low penetration level.
(2) MARKET SHARE OF MOBILE SUBSCRIBERS
MARKET SHARE OF CDMA IN KARNATKA
RCOMM TATA indicom
RCOMM – 70% TATA INDICOM – 30%
MARKET SHARE OF GSM IN BANGALORE
AIRTEL – 40% RCOMM – 5% BSNL – 25% VODAFONE – 31% TATA INDICOM – 2% IDEA – 2%
(3) PERFORMANCE SNAPSHOT
12 months period ended Particulars
Total Subscribers CDMA GSM
June 30, 2008
50,773 42,707 8,066
000’s 000’s 000’s
28,007 24,620 3,387
45,794 38,778 7,016
Sept. 30, 2008
56,046 46,840 9,206
Revenue EBITDA Cash profit from Opera. PBIT Net Profit Total Fixed Assets Shareholders' Equity Net Debt
Rs. Rs. Rs. Rs. Rs.
mn mn mn mn mn
144,683 57,207 56,291 32,247 31,632 330,423 202,719 18,238 39.5% 21.9% 26.8% 0.09
190,678 81,991 82,064 70,762 54,011 523,126 254,609 99,700 43.0% 28.3% 33.7% 0.39
53,222 22,502 24,396 15,564 15,123 580,324 264,197 129,888 42.3% 28.4% 34.6% 0.49
56,450 23,016 25,288 15,541 15,308 614,761 281,598 152,257 40.8% 27.1% 31.8% 0.54
Rs. mn Rs. mn Rs. mn % % % Times
EBITDA Margin Net Profit Margin Return on Net worth Net Debt to funded equity- ratio
Wireless APRU Wireless RPM Wireless MoU per sub Long Distance Minutes
Rs. Rs. Min/month Mn Min
371 0.74 503 23,238
340 0.74 460 30,045
282 0.66 424 8,367
271 0.64 423 9,802
Average revenue per user
Chapter - 5
Indian economy is an emerging one and is growing very fast at the average GDP rate 8-9% so in this emerging market competition level among telecommunication services provides new players are coming who will necessarily intensify the competition. New products and new schemes are being offered by the telecom service providers. The need for large information capacity has grown tremendously due to the demand of real time information. Telecommunication has now become a major information transmission system and telecom has undoubtedly emerged as the most important industry in India. Indian telecom companies are putting in their best offer to rope in major telecom operators of the world e.g. Vodafone, Aircel and MTN etc. are playing their role in synergy with the operation of the Indian companies. Process of acquisition and merger are in process and future will be only for those companies who have an edge over others in the field. Service provided and the better quality of network etc. is provided at affordable cost. In this process of competition it is assumed that only those companies will survive who adopt suitable market strategy and technology innovation and up gradation to suit the aspiration and demand of the consumer. RCOM cellular ltd. an Anil Ambani Group of cos. is very fast catching up with the market by providing cheaper calling rates. The market strategies adopted by its executives are bearing fruits and the company although being the Second one to enter the market of Bihar & Jharkhand has found a suitable niche and recognition in the consumer. But this is not a thing for self contentment as the survey reveals that in network, service and distributor, its place is very far behind to other competitors viz. Airtel, BSNL, and Tata indicom etc. so to withstand the competition resources mobilization and technological innovation on the part of cos. To upgrade its quality of network and services is urgently called for. Market access and growth is alright but the improvement of quality on the above counts is necessity of the time.
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. Also most of them provide only pre-paid connection.
Satisfaction: Most of the retailers i.e. around 74% of respondents are satisfied with RCOMM brand, 10% of them push RCOMM brand to the customer and rest 16% retailers are not satisfied with RCOMM brand due to claim pending and the distributor. The retailers don’t get schemes communicated in time by distributor and distributor does not provide RCV & e-Top properly.
Problems: Around 15% of the respondents that there is network problem with RCOMM, on the other hand they found its competitors viz. Airtel, BSNL, TATA indicom network connectivity of very good to good level. Around 16% retailers which are under puja enterprises distributor projected problem with distributors. They don’t 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 cases take 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.
Chapter – 6
Appendices Bibliography Questionnaire
On the basis of extensive study and research, here are some recommendation and suggestion 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 center Bangalore. It has affected the sale service brand image of Reliance especially in Bangalore. 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 has not been found in recent ads. Reliance is a faster growing provider service in each state .every offers and schemes they should show with proper message for benefit to the customer. In busy life customer do not remembered any offers and which service we can provided for the customer therefore they should by force showing advertisement in growing market and among customer .customers wants continuously exposure in Cable and Local newspapers. Persuasive Advertising: - Now there is a need of persuasive advertising for Reliance service which can be moved into the category of “comparative advertising”. It will help the company to establish the superiority of its brand service 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 ads and publicity should be giving more stress. Hoardings, banners, wall painting should be promoted, as some expenses are also beard by dealers. Ads on Cable network result greater audience attention. Schemes, gift offers etc. must be highlighted through Radio and Local newspapers.
A. SALES PROMOTION Cash discount Premiums Appointment of sale promoter Financial schemes 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 check fluctuating sales. C. PRODUCT QUALITY AND TECHNICAL FEATURES As for as some hand set mobile product quality is concerned, there is an urgent need of technical up gradation of Reliance mobile product line. It would be beneficial for company to launch some colors mobile hand set with the some added feature and minimum price.
BOOKS Marketing Management Marketing Research Phillip Kotler 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
1. Whether following things are available?
48% 90% 40% 90%
The survey revealed that 48% retailers have monsoon Offer, 90% have kit, 40% have V-top and 90% have E-recharge.
2. What is the frequency of DSE visit? Once a Week Twice a Week Thrice a Week None of above
20% 50% 30% 0%
The survey revealed that 20% retailers have said that DSE visits once a Week, 50% retailers have 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 in your 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.
4. What nature of problem you face with RCOMM? Service level Claim level Product availability Product awareness
31% 95% 18% 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 30 days 45 days 60 days 11% 25% 25% 39%
The survey revealed that 11%, 25%, 25%, 39% of the retailers are reimbursed by distributor at claim level respectively.
6. Who are the major competitors of RCOMM?
Airtel Aircel BSNL Tata Indicom Smart
55% 15% 15% 30% 8%
The survey revealed that Airtel and Tata indicom are the major competitors of RCOMM.
60% 50% 40% 30% 20% 10% 0% AirTel BSNL Smart Series1
7. If you have any problem then whom you will prefer to talk? Distributor TSM DSE 10% 23% 67%
The Survey revealed that 10%, 23% and 67% retailers prefer to talk to Distributor, TSM and DSE.
8. How do you know about new scheme? Companies Reliance Airtel AirCel smart Tata Indicom SMS Poster DSE
9. How much time do you take to activate a sim?
(i) (ii) (iii) (iv) 10-15 min. 15-30 min. 30-60 min. Above 60 min. 44% 38% 6% 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) (ii) (iii) (iv) (v) (vi) Airtel Reliance BSNL AirCel TATA None 34% 28% 17% 16% 4% 1%
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