A PROJECT REPORT ON MARKETING STRATEGIES OF RELIANCE COMMUNICATION & ITS CUSTOMER RESPONSE

A REPORT SUBMITTED TO ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY, GREATER NOI DA AS A MANDATORY PART OF PGDM CURRICULUM

SUBMITTED TO PGP CELL AIMT, GR. NOIDA

SUBMITTED BY GAURAV CHHABRA ROLL NO.- DM10420 SESSION -2010-2012

ACCURATE INSTITUTE OF MANAGEMENT AND TECHNOLOGY PLOT NO. 49, KNOWLEDGE PARK-III, GREATER NOIDA, G.B. NAGAR PREFACE Presenting a Summer Training project of this type is an arduous task, demanding a lot of time. I cannot in full measure reciprocate the kindness shown and contr ibution made by various persons in this endeavor. I will remember all of them wi th gratitude. My sincere thanks towards Mr. Apaar Agarwal ASM (Meerut), for giving me a chance to take this project and for his valuable guidance, which helped me on all thos e points, which I needed to include in, with full intensity , for his significan t support extended for the successful completion of the project I was privileged enough to join "Reliance Communications Limited, Meerut" as a summer trainee. At the completion of the III trimester of PGDM we got opportunity to provid e them particular knowledge about each and every aspect of market. It is importa nt because it provides the students about the practical knowledge of the field, which is very essential beside the theoretical knowledge. The experience that I have gathered during this period has certainly provide d me with an orientation which, I believe, will help me to shoulder my assignmen t successfully in near future. During this period, I have collected all the pert inent information of "Marketing strategies" through primary and secondary data w hich were available at the concerned distributors and retailers. On the basis of my training program. I have tried my best to arrange my wor k in symmetric way. However to cover the detailed information in such a short pe riod was not possible. Despite the inherent shortcoming of the study, a genuine attempt was made on my part see that the study was carried out in the right resp ective.

ACKNOWLEDGEMENT Its a thing of massive gratification for me to present this Summer Training Proje ct Report on the topic Marketing Strategies of Reliance & its Customer Response com pleted in an unrivaled organization Reliance Communications, at MEERUT . Mobile telephony adoption is on the rise and recent technological innovations ha ve dramatically enhanced the capabilities of the wireless telephone. I know that even in the areas in which I have a little knowledge, I do not know enough. The re are new tasks in these areas for which I am not yet equipped with tested ,pro ven approaches and tools. This project attempts to identify and define areas related to consumer behavior and response regarding Reliance Services. It also attempts to develop at least f irst approach to the areas, to think through policies, principles, and practices to accomplish the new tasks and to satisfy the customer needs. Gaurav Chhabra PGDM(MM)

TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 2. TELLECOMMUNICATION MARKET IN INDIA 3. HISTORY OF RELIANCE COMMUNICATION 4. COMPANY PROFILE 5. RELIANCE DISTRIBUTION SYSTEM 6. MARKETING STRATEGIES ADOPTED BY RELIANCE 7. 7 PS FOR RELIANCE COMMUNICATION 8. RESEARCH OBJECTIVE 9. RESEARCH METHODOLOGY 10. DATA ANALYSIS 11. FINDINGS 12. SUGGESTIONS 13. BIBLIOGRAPHY 14. ANNEXURES .

EXECUTIVE SUMMARY The project is an extensive report on how the Reliance Company markets its strategies and how the company has been able in tackling the present tough competition and how it is coping up by the allegations of the quality of its products. The report begins with the history of the products and the introduction of the Reliance Company. This report also contains the basic marketing strategies that are used by the Reliance Company. The report includes some of the key salient

features of market trend issues and it also includes the response of the Reliance customers regarding the services of Reliance. In todays world of cutthroat fierce competition, it is very essential to not only exist but also to excel in the market. Todays market is enormously more complex. Hence forth, to survive in the market, the company not only needs to maximize its profit but also needs to satisfy its customers and should try to build upon from there. TELECOMMUNICATION MARKET IN INDIA The number of telephone subscribers in India increased to 861.48 million at the end of April 2011 from 846.32 million at the end of March 2011, thereby registering a growth rate of 1.79 per cent, according to the data released by Telecom Regulatory Authority of India (TRAI). With this, the overall tele-density (telephones per 100 people) in India reached 72.08 at the end of April 2011 from 70.43 in the previous month. The growth in the wireless category was led by Reliance Communications, which added 2.93 million subscribers, taking the subscriber base to 138.65 million at the end of April 2011. Idea Cellular added 2.45 million new users, taking the user base to 91.95 million. Bharti Airtel added 2.41 million subscribers (increasing its user base to 164.61 million), while Vodafone added 2.40 million users (taking its user base to 136.97 million). Aircel added 1.10 million users, while Tata Teleservices added 1.24 million users in April.Meanwhile, Indian Global System of Mobile Communication (GSM) telecom operators added 9.53 million subscribers in May 2011, taking the all-India GSM cellular subscriber base to 590.19 million, according to Cellular Operators Association of India (COAI). The GSM subscriber base stood at 580.66 million at the end of April 2011.

History of Reliance Communication Reliance Communication Ventures Limited (the Telecommunication Resulting Company) was originally incorporated on July 15, 2004, under the Companies Act, 1956 as Reliance Infrastructure Developers Private Limited. The status of the Company was changed to Public Limited Company on July 25, 2005 and the name was changed to its present name, viz. Reliance Communication Ventures Limited, under Fresh Certificate of Incorporation consequent on change of name dated August 3, 2005.

Main Objects of the RCVL as set out in Memorandum of Association of the Company are as under. 1) To carry on and undertake the business of finance, investment, loan and guarantee company and to invest in acquire, subscribe, purchase, hold, sell, divest or otherwise deal in securities, shares, stocks, equity linked securities, debentures, debenture stock, bonds, commercial papers, acknowledgements, deposits, notes, obligations, futures, calls, derivatives, currencies and securities of any kind whatsoever, whether issued or guaranteed by any person, company, firm, body, trust, entity, government, state, dominion sovereign, ruler, commissioner, public body

or authority, supreme, municipal, local or otherwise, whether in India or abroad. The Company will not carry on any activity as per Section 45 1A of RBI Act,1934. 2) To carry on and undertake the business of financial services like financial restructuring / reorganization, investment counseling, portfolio management and all activities and facilities of every description including all those capable of being provided by bankers, stockbrokers, merchantbankers, investment bankers, portfolio managers, trustees, agents, advisors, consultants, providing other financial or related services and to carry on the activities of hire-purchase, leasing and to finance lease operations of all kinds, purchasing, selling, hiring or letting on hire all kinds of plant and machinery and equipment and to assist in financing of all and every kind and description of hire- purchase or deferred payment or similar transactions and to subsidize, finance or assist in subsidizing or financing the sale and maintenance of any goods, articles or commodities of all and every kind and description upon any terms whatsoever and to purchase or otherwise deal in all forms of movable property including plant and machinery, equipments, ships, aircrafts, automobiles, computers, and all consumer, commercial, medical and industrial items with or without security and to lease or otherwise deal

with them including resale thereof, regardless of whether the property purchased and leased is new and/or used and from India or abroad.

3) To carry on and undertake the business of acting as agent of any person, public or private sector enterprises, financial institutions, banks, central government and state governments and to do financial research, design and preparation of feasibility study reports, project reports and appraisal report in India and abroad. 4) To carry on, manage, supervise and control the business of telecommunication, infrastructure, telecommunication system, telecommunication network, and telecommunication services of all kinds including and not limited to setting up telephone exchange, coaxial stations, telecommunication lines and cables of every form and description, transmission, emission, reception through various forms, maintaining and operating all types of telecommunication service and providing data programs and data bases for telecommunication

RELIANCE COMMUNICATIONS A DREAM COME 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 Indias 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 kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services for enterprises as well as individuals, applications, and consulting. Today, Reliance Communications is revolutionising the way India communicates and networks, truly bringing about a new way of life. THINK BIG ,THINK DIFFERENT, THINK AHEAD Dhirubhai preached and personally practised one mantra throughout his life: Dream with conviction. He built the Reliance empire from scratch and, in a short span of 25 years, it catapulted to become one of the top Fortune 500 corporations of the world an achievement unparalleled in history. He was deeply rooted in traditional Indian values, and at the same time, Dhirubhai possessed a very modern outlook - truly that of a 21st century person. His corporate philosophy was short, simple and incredibly effective: Think big. Think different. Think fast. Think ahead. Aim for the best. This was clearly reflected in his passion for mega-sized projects, as well as his fascination for cutting-edge technology and desire to always achieve the highest possible productivity. At Reliance, Dhirubhai was a pillar of inspiration for one and all. By practicing what he preached, he inspired and encouraged everyone to surpass the best in the world. Dhirubhai fully realised that true empowerment of the people is possible only through education. Being an effective communicator, he continued to inspire, guide, educate and motivate everyone through his communications. He was a firm believer in the power of information and communication, and how it can be utilised and turned to the advantage of one and all, by making time and distance irrelevant. He would always say that if a telephone call could be made cheaper than a postcard, it would transform every home, empower every Indian, remove every obstacle to opportunity and growth, and tear apart every barrier that divides Indian society Keeping his conviction as our credo, Reliance Communications is committed to transform Dhirubhais dream into a reality. FOUNDER Few men in history have made as dramatic a contribution to their

countrys economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: the corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become Indias largest private sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the worlds largest shareholder families. A PROJECT REPORT ON MARKETING STRATEGIES OF RELIANCE COMMUNICATION & ITS CUSTOMER RESPONSE

A REPORT SUBMITTED TO ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY, GREATER NOI DA AS A MANDATORY PART OF PGDM CURRICULUM

SUBMITTED TO PGP CELL AIMT, GR. NOIDA

SUBMITTED BY GAURAV CHHABRA ROLL NO.- DM10420 SESSION -2010-2012

ACCURATE INSTITUTE OF MANAGEMENT AND TECHNOLOGY PLOT NO. 49, KNOWLEDGE PARK-III, GREATER NOIDA, G.B. NAGAR PREFACE Presenting a Summer Training project of this type is an arduous task, demanding a lot of time. I cannot in full measure reciprocate the kindness shown and contr ibution made by various persons in this endeavor. I will remember all of them wi th gratitude. My sincere thanks towards Mr. Apaar Agarwal ASM (Meerut), for giving me a chance to take this project and for his valuable guidance, which helped me on all thos e points, which I needed to include in, with full intensity , for his significan t support extended for the successful completion of the project I was privileged enough to join "Reliance Communications Limited, Meerut" as a summer trainee. At the completion of the III trimester of PGDM we got opportunity to provid e them particular knowledge about each and every aspect of market. It is importa nt because it provides the students about the practical knowledge of the field, which is very essential beside the theoretical knowledge. The experience that I have gathered during this period has certainly provide d me with an orientation which, I believe, will help me to shoulder my assignmen t successfully in near future. During this period, I have collected all the pert inent information of "Marketing strategies" through primary and secondary data w hich were available at the concerned distributors and retailers. On the basis of my training program. I have tried my best to arrange my wor k in symmetric way. However to cover the detailed information in such a short pe riod was not possible. Despite the inherent shortcoming of the study, a genuine attempt was made on my part see that the study was carried out in the right resp ective.

ACKNOWLEDGEMENT Its a thing of massive gratification for me to present this Summer Training Proje ct Report on the topic Marketing Strategies of Reliance & its Customer Response com pleted in an unrivaled organization Reliance Communications, at MEERUT . Mobile telephony adoption is on the rise and recent technological innovations ha ve dramatically enhanced the capabilities of the wireless telephone. I know that even in the areas in which I have a little knowledge, I do not know enough. The re are new tasks in these areas for which I am not yet equipped with tested ,pro ven approaches and tools. This project attempts to identify and define areas related to consumer behavior and response regarding Reliance Services. It also attempts to develop at least f irst approach to the areas, to think through policies, principles, and practices to accomplish the new tasks and to satisfy the customer needs. Gaurav Chhabra PGDM(MM)

TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 2. TELLECOMMUNICATION MARKET IN INDIA 3. HISTORY OF RELIANCE COMMUNICATION 4. COMPANY PROFILE 5. RELIANCE DISTRIBUTION SYSTEM 6. MARKETING STRATEGIES ADOPTED BY RELIANCE 7. 7 PS FOR RELIANCE COMMUNICATION 8. RESEARCH OBJECTIVE 9. RESEARCH METHODOLOGY 10. DATA ANALYSIS 11. FINDINGS 12. SUGGESTIONS 13. BIBLIOGRAPHY 14. ANNEXURES .

EXECUTIVE SUMMARY The project is an extensive report on how the Reliance Company markets its strategies and how the company has been able in tackling the present tough competition and how it is coping up by the allegations of the quality of its products. The report begins with the history of the products and the introduction of the Reliance Company. This report also contains the basic marketing strategies that are used by the Reliance Company. The report includes some of the key salient features of market trend issues and it also includes the response of the Reliance customers regarding the services of Reliance. In todays world of cutthroat fierce competition, it is very essential to not only exist but also to excel in the market. Todays market is enormously more complex. Hence forth, to survive in the market, the company not only needs to maximize its profit but also needs to satisfy its customers and should try to build upon from there. TELECOMMUNICATION MARKET IN INDIA The number of telephone subscribers in India increased to 861.48 million at the end of April 2011 from 846.32 million at the end of March 2011, thereby registering a growth rate of 1.79 per cent, according to the data released by Telecom Regulatory Authority of India (TRAI). With this, the overall tele-density (telephones per 100 people) in India reached 72.08 at the end of April 2011 from 70.43 in the previous month.

The growth in the wireless category was led by Reliance Communications, which added 2.93 million subscribers, taking the subscriber base to 138.65 million at the end of April 2011. Idea Cellular added 2.45 million new users, taking the user base to 91.95 million. Bharti Airtel added 2.41 million subscribers (increasing its user base to 164.61 million), while Vodafone added 2.40 million users (taking its user base to 136.97 million). Aircel added 1.10 million users, while Tata Teleservices added 1.24 million users in April.Meanwhile, Indian Global System of Mobile Communication (GSM) telecom operators added 9.53 million subscribers in May 2011, taking the all-India GSM cellular subscriber base to 590.19 million, according to Cellular Operators Association of India (COAI). The GSM subscriber base stood at 580.66 million at the end of April 2011.

History of Reliance Communication Reliance Communication Ventures Limited (the Telecommunication Resulting Company) was originally incorporated on July 15, 2004, under the Companies Act, 1956 as Reliance Infrastructure Developers Private Limited. The status of the Company was changed to Public Limited Company on July 25, 2005 and the name was changed to its present name, viz. Reliance Communication Ventures Limited, under Fresh Certificate of Incorporation consequent on change of name dated August 3, 2005. Main Objects of the RCVL as set out in Memorandum of Association of the Company are as under. 1) To carry on and undertake the business of finance, investment, loan and guarantee company and to invest in acquire, subscribe, purchase, hold, sell, divest or otherwise deal in securities, shares, stocks, equity linked securities, debentures, debenture stock, bonds, commercial papers, acknowledgements, deposits, notes, obligations, futures, calls, derivatives, currencies and securities of any kind whatsoever, whether issued or guaranteed by any person, company, firm, body, trust, entity, government, state, dominion sovereign, ruler, commissioner, public body

or authority, supreme, municipal, local or otherwise, whether in India or abroad. The Company will not carry on any activity as per Section 45 1A of RBI Act,1934. 2) To carry on and undertake the business of financial services like financial restructuring / reorganization, investment counseling, portfolio management and all activities and facilities of every description including all those capable of being provided by bankers, stockbrokers, merchantbankers, investment bankers, portfolio managers, trustees, agents, advisors, consultants, providing other financial or related services and to carry on the activities of hire-purchase, leasing and to finance lease operations of all kinds, purchasing, selling, hiring or letting on hire all kinds of plant and machinery and equipment and to assist in financing of all and every kind and description of hire- purchase or deferred payment or similar transactions and to subsidize, finance or assist in subsidizing or financing the sale and maintenance of any goods, articles or commodities of all and every kind and description upon any terms whatsoever and to purchase or otherwise deal in all forms of movable property including plant and machinery, equipments, ships, aircrafts, automobiles, computers, and all consumer, commercial, medical and industrial items with or without security and to lease or otherwise deal with them including resale thereof, regardless of whether the property purchased and leased is new and/or used and from India or abroad.

3) To carry on and undertake the business of acting as agent of any person, public or private sector enterprises, financial institutions, banks, central government and state governments and to do financial research, design and preparation of feasibility study reports, project reports and appraisal report in India and abroad. 4) To carry on, manage, supervise and control the business of

telecommunication, infrastructure, telecommunication system, telecommunication network, and telecommunication services of all kinds including and not limited to setting up telephone exchange, coaxial stations, telecommunication lines and cables of every form and description, transmission, emission, reception through various forms, maintaining and operating all types of telecommunication service and providing data programs and data bases for telecommunication

RELIANCE COMMUNICATIONS A DREAM COME 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 Indias 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 kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services for enterprises as well as individuals,

applications, and consulting. Today, Reliance Communications is revolutionising the way India communicates and networks, truly bringing about a new way of life. THINK BIG ,THINK DIFFERENT, THINK AHEAD Dhirubhai preached and personally practised one mantra throughout his life: Dream with conviction. He built the Reliance empire from scratch and, in a short span of 25 years, it catapulted to become one of the top Fortune 500 corporations of the world an achievement unparalleled in history. He was deeply rooted in traditional Indian values, and at the same time, Dhirubhai possessed a very modern outlook - truly that of a 21st century person. His corporate philosophy was short, simple and incredibly effective: Think big. Think different. Think fast. Think ahead. Aim for the best. This was clearly reflected in his passion for mega-sized projects, as well as his fascination for cutting-edge technology and desire to always achieve the highest possible productivity. At Reliance, Dhirubhai was a pillar of inspiration for one and all. By practicing what he preached, he inspired and encouraged everyone to surpass the best in the world. Dhirubhai fully realised that true empowerment of the people is possible only through education. Being an effective communicator, he continued to inspire, guide, educate and motivate everyone through his communications. He was a firm believer in the power of information and communication, and how it can be utilised and turned to the advantage of one and all, by making time and distance irrelevant. He would always say that if a telephone call could be made cheaper than a postcard, it would transform every home, empower every Indian, remove every obstacle to opportunity and growth, and tear apart every barrier that divides Indian society Keeping his conviction as our credo, Reliance Communications is committed to transform Dhirubhais dream into a reality. FOUNDER Few men in history have made as dramatic a contribution to their countrys economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: the corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the

Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become Indias largest private sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the worlds largest shareholder families.