1.

1 INDUSTRY PROFILE
India is the world’s fastest growing industry in the world in terms of number of wireless connections after China, with 811.59 million mobile phone subscribers. According to the world telecommunications industry, India will have 1.200 billion mobile subscribers by 2013. Furthermore, projections by several leading global consultancies indicate that the total number of subscribers in India will exceed the total subscriber count in the China by 2013. So how Telecommunication started in India?? Well Postal means of communication was the only mean communication until the year 1850. In 1850 experimental electric telegraph started for first time in India between Calcutta (Kolkata) and Diamond Harbor (southern suburbs of Kolkata, on the banks of the Hooghly River). In 1851, it was opened for the use of the British East India Company. Subsequently construction of telegraph started through out India. A separate department was opened to the public in 1854. Dr.William O’Shaughnessy, who pioneered the telegraph and telephone in India, belonged to the Public Works Department, and worked towards the development of telecom. Calcutta or the-then Kolkata was chosen as it was the capital of British India. In early1881, Oriental Telephone Company Limited of England opened telephone exchanges at Calcutta (Kolkata), Bombay (Mumbai), Madras (Chennai) and Ahmedabad. On the 28th January 1882 the first formal telephone service was established with a total of 93 subscribers. From the year 1902 India drastically changes from cable telegraph to wireless telegraph, radio telegraph, radio telephone, trunk dialing. Trunk dialing used in India for more than a decade, were system allowed subscribers to dial calls with operator assistance. Later moved to digital

microwave, optical fiber, satellite earth station. During British period all major cities and towns in India were linked with telephones.

Facilities Provided By Telecom IndustryMobile Communication First mobile telephone service on non-commercial basis started in India on 48th Independence Day at country’s capital Delhi. The first cellular call was made in India on July 31st, 1995 over Modi Telstra’s MobileNet GSM network of Kolkata. Later mobile telephone services are divided into multiple zones known as circles. Competition has caused prices to drop and calls across India are one of the cheapest in the world. Most of operator follows GSM mobile system operate under 900MHz bandwidth few recent players started operating under 1800MHz bandwidth. CDMA operators operate under 800Mhz band, they are first to introduce EVDO based high speed wireless data services via USB dongle. In spite of this huge growth Indian telecom sector is hit by severe spectrum crunch, corruption by India Govt. officials and financial troubles. In 2008, India entered the 3G arena with the launch of 3G enabled Mobile and Data services by Government owned MTNL and BSNL. Later from November 2010 private operator’s started to launch their services. Broadband communication After US, Japan, India stands in third largest Internet users of which 40% of Internet used via mobile phones. India ranks one of the lowest provider of broadband speed as compared countries such as Japan, India and Norway. Minimum broadband speed of 256kbit/s but speed above 2Mbits is still in a nascent stage. Year 2007 had been declared as “Year of Broadband” in India. Telco’s based on ADSL/VDSL in India generally have speeds up to 24Mbit max while those based on newer Optical Fiber technology offer up to 100Mbits in some plans Fiber-optic communication (FTTx). Broadband
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growth has been plagued by many problems. Complicated tariff structure, metered billing, High charges for right of way, Lack of domestic content, non implementation of Local-loop unbundling have all resulted in hindrance to the growth of broadband. Many experts think future of broadband is on the hands of wireless factor. BWA auction winners are expected to roll out LTE and WiMAX in India in 2012. Next Generation Network (NGN) Next Generation Networks, multiple access networks can connect customers to a core network based on IP technology. These access networks include fiber optics or coaxial cable networks connected to fixed locations or customers connected through Wi-Fi as well as to 3G networks connected to mobile users. As a result, in the future, it would be impossible to identify whether the next generation network is a fixed or mobile network and the wireless access broadband would be used both for fixed and mobile services. It would then be futile to differentiate between fixed and mobile networks both fixed and mobile users will access services through a single core network. Cloud based data services are expected to come.

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1.2 COMPANY PROFILE

HFCL's vision is to provide cost effective futuristic telecom solutions. HFCL is focused on developing the state-of-art technologies and intellectual property to maintain a competitive leadership and a sustained long-term growth.

Established in the year 1987, Himachal Futuristic Communications Ltd. has developed a vast base for indigenous telecom equipment manufacturing in India. It started with manufacturing transmission Equipment and soon expanded its product portfolio to manufacture Access Equipment, Optical Fibre Cable, Accessories and Terminal Equipment The Group companies and Associates companies of Himachal Futuristic Communications Ltd.- HFCL Infotel Ltd., HFCL Satellite Communications Ltd. and Microwave Communications Ltd. which offer Basic Telephoney and Internet services, V-sat Services and Paging services respectively have also made a name for themselves. HFCL Infotel Ltd. became the first basic service provider in Punjab

HFCL Satellite Communications Ltd. is catering to a number of channels like Aaj Tak by providing customized DSNG vans. Himachal Futuristic Communications Lts.'s Pagelink, together with Pagepoint, is one of the leading players in field of paging services. HTL,a major telecom equipment supplier, which was recently acquired by HFCL is not only be an extension of the manufacturing aspect of HFCL but also synergises and value add s to the already existing product range of HFCL.

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HFCL Infotel Ltd. the first basic telephony serSSSSvices provider in Punjab & launched its basic telephony services on 16th October, 2000. CONNECT's launch brought to the people of Punjab a world class telecom experience - technology, products, customer service etc. The vision statement of the company is 'To be the most admired telecom brand' and the mission statement aims to "Deliver total telecommunication solutions by offering innovative products and services through superior technology, ensuring customerdelight". CONNECT is a business venture of Himachal Futuristic Communications Ltd., India's leading telecommunications giant. CONNECT is further supported by the expertise of Lucent Technologies USA, Huawei Technologies, IIT Chennai, Compaq, Cisco, CGI, Bell Nexxia and Cincom. With an investment of over Rs.1400 crores, HFCL Infotel, has set up a state-of-the-art network in over 130 towns and cities in Punjab. The average revenue per line (ARPL) for CONNECT is amongst the highest in the country. With a clear focus on acquiring quality subscribers through well-planned roll out and through appropriate revenue focus in our marketing strategy, we are confident of ensuring that we retain our position of being amongst the top ARPL brands in the country. The wide array of innovative products and services in the data and broadband segment has further allowed the Company to drive its revenue growth. The launch of Triple Play service that delivers voice, data and video to a subscriber is a first by any telecom operator in the country. CONNECT is also the first operator in the country to launch a CDMA based pre-paid mobile service in 2002. Besides fixed line telephony, mobile telephony and Internet access, CONNECT's services include an array of broadband, enhanced and data services like Internet Leased Lines, ISDN, VPN, Centrex, Web Hosting, DSL and server Co-location. Customised solutions are also available for its Corporate customers & additionally, services like Video Conference, Audio Conference, Phone to mail and VMS form an important part of the CONNECT portfolio.

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Exclusive world-class showrooms to provide high quality customer care to CONNECT subscribers have been introduced in major cities of Punjab. These showrooms aim to fulfill any telecom need of the subscribers. They provide a single window opportunity to address all customer queries, besides serving as an outlet for sale of all CONNECT products. These aesthetically designed outlets allow CONNECT subscribers to buy any of CONNECT services while experiencing exclusive CONNECT services like Phone to mail, Audio Conference Bridge, Video Conference, Broadband Internet etc. A customer can subscriber to a telephone connection, buy Phone cards, CDMA mobile handsets, Customer Premises Equipment (CPE) and Internet products. One can also make bill payments, register a complaint and seek information on any of the company's products or services. Specially trained executives attend to the customer needs and ensure that they are met with speed and efficiency. An agreement has been signed between the Government of Punjab and HFCL Infotel Ltd. wherein CONNECT will provide free data connectivity for the government's e-governance & citizen services projects. This connectivity will facilitate communication between state headquarters, district headquarters, sub-divisions and blocks. The e-Governance project will help the government in improving revenue collection, delivery of citizen services, increase government accountability and transparency thereby increasing citizen trust in government besides providing effective MIS for government decisions. This will effectively involve stakeholders, including NGOs, business, and interested citizen in new ways of meeting public challenges. Indeed with a future-proof network, that connects every town and village in Punjab, along with an emphasis on service excellence and quality, CONNECT has exceeded customer expectations and will continue to do so in the future.

BOARD OF DIRECTORS
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The Company’s Board of Directors consists of 6 Directors including a nominee directors nominated by Life Insurance Corporation of India and by Industrial Development Bank of India. The Board oversees the business operations with the day-to-day affairs being managed by the Executive Committee consisting of Senior Officers of the Company. 1. Mr. Mahendra Nahata (Chairman) 2. Mr. S. Lakshmanan (Nominee - Life Insurance Corporation of India) 3.Mr. R.K.Bansal (Nominee of IDBI Ltd.) 4. Mr. Mahendra Pratap Shukla 5. Mr. Krishna Behari Lal 6. Dr. Ranjeet Mal Kastia

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Committees
Audit Committee Mr. S. Lakshmanan - Chairman Mr. Mahendra Nahata Mr. R.K.Bansal sRemuneration Committee Mr. S. Lakshmanan - Chairman Mr. M.P. Shukla Dr. Ranjeet Mal Kastia Share Transfer and Investor Greivance Dr. Ranjeet Mal Kastia - Chairman Mr. K. B. Lal Mr. M.P.Shukla Project Management Review Committee Mr. M. P. Shukla - Chairman Mr. Mahendra Nahata Mr. S.Lakshmanan Mr. K. B. Lal Mr. R.K.Bansal

Compliance Officer For Company Law Matters Mr. S.Prabhakar Company Secretary & Head – Legal & Regulatory

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For SEBI Related Matters Mr. Vikash Agarwal Head-Corporate Finance

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WHY CONNECT
Welcome to a whole new world where the futuristic telecom network delivers a wide range of voice, data and video services, at high speeds. A company spearheading Punjab's telecom revolution, offers you the entire spectrum of telecom solutions such as Landline Telephony, Mobile Phone Service, PCO's, Centrex, DSL, Intelligent network Services, ISDN, Leased Lines, Internet Leased Lines and much more. With technological know how from the globally acknowledged leaders like Lucent technologies (USA), Compaq, Cisco, Bell Nexxia, Suntec and IIT Chennai. CONNECT's Broad band fibre network is enabled for interactive multi media services, and capable of high quality content, high speed Internet access and a large number of interactive applications including B2B and B2C e-commerce.

CONNECT has also provisioned fiber connectivity to the larger Corporate houses and Industrial areas. CONNECT provides an uninterrupted service with large Centrally administered state of the art digital switches, optical fibre backbone and backhaul and installation practices to ensure high quality voice and data calls.

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NETWORK | MAP

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HOME USERS:

CONNECT is today a leading brand name in the basic telecom services in Punjab & Chandigarh.

CONNECT provides WLL Mobile service in Chandigarh, Ludhiana, Jalandhar and Amritsar under the brand name CONNECT Mobile.

CONNECT Phone card is a smart and convenient way of making and receiving calls from anywhere in the world

With

CONNECT

NetReady,all

new

CONNECT landline telephone subscribers can now enjoy free Internet access 24 hours a day

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LANDLINE:
CONNECT is today a leading brand name in the basic telecom services in Punjab & Chandigarh. It has helped in bringing people closer through its state of the art network & latest product offerings. Operational in more than 65 leading towns of Punjab, Connect is fully equipped to deliver its services across the length & breadth of Punjab. At CONNECT, we value our relationship with you and therefore make ourself available 24hours a day, 7days a week. We offer customized plans to save on your heavy telephone bills along with many Value Added features that you can enjoy freely. Stay Connected !!

CONNECT MOBILE:
CONNECT provides WLL Mobile service in Chandigarh, Ludhiana, Jalandhar and
Amritsar under the brand name CONNECT Mobile. This service enables the subscriber to use mobile within an SDCA.

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OUR TECHNOLOGY
CONNECT Mobile uses the advanced CDMA technology. This enables you to make and
receive calls from anywhere in the world while on the move and that too at call charges similar to that on your landline phone.

PHONE CARDS:
CONNECT Phone card is a smart and convenient way of making phone calls. It is a prepaid card that allows you to make STD/ISD & local calls from any CONNECT phone/ CONNECT Phone Point. The CONNECT phone used by you does not get charged, instead your phone card gets debited by the cost of call.

For your convenience we have installed CONNECT Phone Points in various cities in Punjab. These phone points have a CONNECT Phone line thus enabling you to make calls using CONNECT Phone card.

INTERNET SERVICES:
With CONNECT NetReady,all new CONNECT landline telephone subscribers can now enjoy free Internet access 24 hours a day, just plug in and start surfing. It's so simple In your dialer screen simply enter Username-Netready Password –Netready Access No-1525 It's so convenient No need to buy Internet packs. It's economical too No change for Internet access. You only pay for the telephone line usage

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BUSINESS SOLUTIONS:

CONNECT, the smarterway. We offer full range of communication solutions for your BUSINESS REQUIRMENTS.

It has helped in bringing people closer through its state of the art network & latest product offerings.

CONNECT Internet & Data Services allows you to transfer voice, data and image simultaneously at high speedsover standard copper wires.

CONNECT Mobile uses the advanced CDMA technology. This enables you to make and receive calls from anywhere in the world

CONNECT Value Added Services enables you to conduct an audio as well as voice conference service.

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INTERNET & DATA SERVICES:
About ISDN
ISDN (Integrated Service Digital Network) is a fully digital service that allows you to transfer voice, data and image simultaneously at high speed over standard copperwires.

ISDN is offered in two variants Basic Rate Interface (BRI):
BRI gives you 64 Kbps channels per lines. By using these channels over a single copper wire, you can get speed upto 128 Kbps.

Primary Rate Interface (PRI):
PRI consists of 30 x 64 Kbps channels giving a total bandwidth of 2 Mbps. This is useful for handling large volume of data.

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VALUE ADDED SERVICES: About Telemeet
CONNECT Telemeet is an audio conference service that enables the subscriber to
conduct a telephonic meeting with as many participants as one wants in a single conference located anywhere in the world. If your company has multi-locational offices and a wide customer base, you may have suppliers, investors, business associates, regional offices and your sales force spread across different locations within the city, in different cities or across the globe. Connect Telemeet is a great solution to reach out to as many of them without incurring huge travel costs or losing out on valuable time. You can save time and travel cost with Connect Telemeet Service. Talk simultaneously to as many people as you wish!

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Tarif Structure
Plan 847 1047 1197 1547 2047 3047

Monthly charges with Rs. 950 Tax Speed Free Data Transfer Free calling Value Call Charges 1 Mbps till 10 GB Rs. 75 1p/sec

Rs. 1175

Rs. 1350

Rs. 1735

Rs. 2300

Rs.3400

2 Mbps till 15 GB Rs. 75 1p/sec

2 Mbps till 25 GB Rs. 75 1p/sec

1 Mbps till 150 GB Rs. 75 1p/sec

2 Mbps till 150 GB Rs. 75 1p/sec

2 Mbps till 200 GB Rs. 75 1p/sec

Activation Charges 560 with standard modem

560

560

560

560

560

Activation Charges with Wifi modem

1350

1350

1350

550

550

550

Telephone instrument Rs. 500 Charges

Rs. 500

Rs. 500

Rs. 500

Rs. 500

Rs. 500

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Plan Monthly charges with Tax Free calling Value Call Charges Local Call Charges std Activation Charges If Req Telephone instrument Charges

VALUE MAX 500 Rs. 561

VALUE MAX 599 Rs. 672

VALUE MAX 999 Rs. 1121

Rs,500 50p /per min 60p/per min

Rs. 599 1p/sec 1p/sec

Rs.999 20p/30sec 20p/30sec first bill adv to be

first bill adv to be first bill adv to be

credited in first bill credited in first bill credited in first bill

Rs. 330

Rs. 330

Rs. 330

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SWOT ANALYSIS
STRENGTHS
• • • • • • • Cost advantage Current leaders in quality service Largest distribution network Ability to constantly innovate Highly skilled workforce Entrepreneurial zeal Connect increased equity and market cap.

WEAKNESSES
• • • • • To prove credibility Price pressures Need for Government support Awareness Sales and Marketing

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OPPORTUNITIES
• • • • • • To sustain passion and commitment Connect market share increasing at other service provider expense. Thus opportunity to wipe it out. Attain higher value services Collaborative business needs to be explored Vertical repeatable solutions. Low penetration level in rural markets.

THREATS • Foreign investment
• • Global trends moving from Copper to Wll. Lack of global parity in telecom tariff

• Other competition

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1.3 ACQUIRING CONNECT BY VIDEOCON

VIDEOCON PROFILE

Videocon Industries Limited is one of the biggest business conglomerates in India. In 1979 Late Mr. Nandlal Madhavrao Dhoot started this business with great vision. His vision reflects his ideology for business

Videocon founder Late Mr. Nanadlal M Dhoot

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Vision And Mission

“To delight and deliver beyond expectation through ingenious strategy, intrepid entrepreneurship, improved technology, innovative products, insightful marketing and inspired thinking about the future.” We can feel this vision while working with the Videocon also. This group is working very aggressively under the guidance of current Chairman Mr. Venugopal Nandlal Dhoot & Vice chairman and Chief executive Officer Mr. K R Kim. This group has good presence in various sector but consumer durables is its major business.

To increase the existing market share the company has launched its consumer retail chain DIGI World in major cities of India. There is availability of five major brands of Videocon Group. These all brands have good image in the mind of the consumers. These megastores have got good starting. There are almost 16 shops have been launched so for. Mr. K R Kim, CEO of Videocon Group has told in an interview they are focusing on almost 200 shops all around in India.

These megastores give a lot of boost to the existing networks of distributors, direct dealers and sub dealers. These stores mainly exist in major cities like Mumbai, Delhi, Gurgaon and Ghaziabad etc.

There are many reasons to open these megastores. As the company is adopting aggressive marketing plan for increasing sales so they are focusing on many dimension of marketing. Among them is increasing brand visibility, for increasing this they are working to do so. DIGI World is one of the initiatives taken by the new CEO Mr. K R Kim. There are several stapes have been taken from this former CEO of LG. During his tenure in LG this man has made miracles.
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COMPANY OPERATION
Videocon is the biggest Indian company. In consumer durables field this company has great reputation in market and among customers. Other two major players LG and Samsung are Korean player that rock entire Asia by their technology. But in India, Videocon not only give them strong challenge but also holding the 2nd position in this sector. Now Videocon group is unfolding its wings to fly in the sky of the globe. For this they are entering in the different segment also. The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979.

HISTORY & MILESTONES

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This is started in 1979 but it curved it shape in 1987 by starting manufacturing of color Television and Washing Machine. These two products made major impact on Indian consumers. Gradually Videocon became the brand of India. After that Videocon never looked back and in year 1989 they launched Home Theater System and Air Conditioner for India. There were only very few player in that market like Philips, BPL, Crown, and Bush etc but among them Videocon successfully made his position. In year 1991 they started manufacturing of Refrigerators and Air coolers. Till then Videocon Washing Machine became important product in Indian market. In Videocon there was sea change came in year 1995, when they decided about manufacturing of CRT shell. From here Videocon made a significant change in its policy. They focused on the manufacturing of components which could generates more revenues and help them to keep their product cost low. In year 1996 they entered in the field of the small home appliances, they started production of mixer and juicer, dice washer, iron, toaster. First time after its inception Videocon diverse it’s business and selected a new field of energy by entering into the business of Oil and Gas. In 1998 they started manufacturing of compressor and compressor motor which help them to reduce cost of the refrigerators and air conditioners. One of the major achievements comes into the history of the Videocon when they took over Philips India plant. Here Videocon made a significant impact on the Indian corporate. This was time when Videocon wanted spread Electrolux three plants its wing for global business by acquiring

Thomson color picture tube business in year 2006. In the same year they took over

MANAGEMENT OF THE ORGANISATION

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Mr. Venugopal Nandlal Dhoot is the current Chairman of the company. Under his leadership Videocon is increasing its height of business. Mr. K R Kim is Chief Executive Officer of its consumer durable business. There is a Board of Directors in Videocon that keeps the company on the path of success. Name of the directors are following

v v v v v v v v v v v

Mr. Venugopal N Dhoot Mr. Pradeepkumar N Dhoot Mr. K C Srivastava Mr. Kuldeep Kumar Drabu Mr. Satyapal Talwar Mr. S Padmanabhan Maj. Gen. S C N Jatar Mr. Arun L Bongirwar Mr. Didier Trutt (Nominee - Thomson S.A) Mr. Johan G Fant (Nominee - AB Electrolux (Publ) ) Mr. B Ravindranath (Nominee - IDBI Limited)

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v

Mr. Ajay Saraf (Nominee - ICICI Bank Limited)

STRUCTURE OF THE ORGANISATION

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As they are in many businesses with multiple brands so they have adopted MATRIX STRUCTURE. For each and every department they have clear guidelines. Job responsibilities are quite clear. All the employees are accountable for their job. In this organization rule regulation are pre defined and flexible. E.g. In all branches all over India there is a Branch Marketing Manager, he/she has to report two bosses one Branch Operation Head and Regional Marketing Manager for his all activities.

FUNCTIONAL AREAS
As any other company this company has many functions each and every function is very important for the organization. Major functional areas are followings
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Financials Functions
In this they practice all the function of the finance. But major are followings Control over all cash inflows and outflows. Taxation Tight control over miscellaneous expanses

Marketing Function
In this they practice every possible thing which develop and build the image of the company. Major activities are followings Branding Advertisement Marketing Intelligence About Competitors About dealers, sub dealers and distributors Measuring impact of the marketing activities like Road shows Canopies Canter Activities Dangler hanging, Postering and In-shopping Advertisement in print & electronic media Taking feedback of the dealers and distributors about advertisements Design new marketing ideas to create awareness and image building

Production And Operation
In this area they use only one slogan Reduce cost, gain market but never compromise with quality
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Major functions are followings Control over inventories (not more than 3days) Reduce wastage As this company is eco friendly, so they practice it in their production line also. Energy efficiency Use non conventional energy sources also (solar and wind energy)

Information Technology
Now information is the business, this line is in practice in Videocon. They provide best possible information facility to their employee. They have their own intranet network inside the organization. They have vgmail.in. It gives employee to work from house and give direct contact to the head office. Company provides enough facility to its employees to work inside and outside of the organization. These facilities make them efficient and faster to work proper and within given time. For all other information they have Videoconworld .com also. It is the biggest source of information for internal and external customers. This site does not only give the proper information about the company but also give information about industry as well as. They have trend analysis of the industry which gives the visitors more satisfy to visit the site.

Human Resource

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As this company is stiff challenge from their competitors so they are focusing to recruit people with passion of work for organization and they must have combination of creativity and knowledge of how to implement plan properly. Selection of right kind of people for right kind of job Training Creating positive atmosphere for work Enrich employee efficiency for productivity Rate employee for their performance Time to time development program for employee

Others
There are few more functional areas also which are supporting other major functional areas.

Logistic
This company has many MOD agreements with Sansui, Electrolux, Kenstar, Kelvinator and AKAI. There is complexity for logistic department. They are responsible for dispatching all goods on time. They are very important for the company and its logistic policy. Its Integrated Logistic Policy for all the products and all brands is very useful. Their few rules are following 1. Delivery of all orders within 24 hours 2. All products should be delivered in proper condition 3. There must not be any mismatch in delivered and ordered goods 4. Defective good must be taken back to official warehouse

Quality Management Initiative
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This company follows ISO 9001 as its quality tools as they are work in very competitive environment so there is very less chance of error. By implementing ISO standards they are able to reduce the cost of its product to give competition to its competitors. They never forget that safety and health concern about its employees. So they can work in such atmosphere which enhances their productivity.

1.4 MARKETING STRATEGIES ADOPTED BY CONNECT
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The objective behind designing a promotion campaign for the ‘Connect’ services is to promote the brand awareness and to build brand preferences. It is trying to set up a thematic campaign to build a stronger brand equity for Connect. Since the broadband category itself is too restricted, also the fact that a Internet is a high involvement product, price doesn't qualify as an effective differentiator. The image of the service provider counts a great deal. Given the broadband category, it is the network efficiency and the quality of service that becomes important. What now the buyer is looking at is to get the optimum price-performance package. This also serves as an effective differentiator Brand awareness is spread through the' campaigns and brand preference through brand stature. Connect's campaign in the capital began with a series of 'teaser' hoardings across the city,' bearing just the company's name and without explaining what Connect was. In the next phase the campaign associated Connect with Broadband only thereafter was the Connect broadband connection brought up. Vans with Connect logos roamed the city, handing out brochures about the company and its services to all consumers. About 50,000 direct callers were sent out. When the name was well entrenched in the Delhites’s mind, the Connect campaign began to focus on the utility of Internet. In the first four months alone connect advertisement spend exceeded Rs. 4 crores. As of today the awareness level Is 60% unaided. This implies that if potential or knowledgeable consumers are asked to name a Internet service provider that is on the top of his/her mind 60% of them would name Connect. As for aided it -is 100% (by giving clues and hints etc.). Brand strength of a product or the health of a brand is measured by the percentage score of the brand on the above aided and the unaided tests. The figures show that Connect is a healthy and a thriving brand. Every company has a goal, which might comprise a sales target and a game plan with due regard to Its competitor. Connect 's campaign strategy is designed keeping in mind its marketing strategy. The tone, tenor and the stance of the visual ads are designed to convey the image of a market leader in terms of its market share. It tries to portray the image of being a "first mover every time" and that of a "market leader".
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The status of the product in terms of its life cycle has just reached the maturity stage in India. It is still on the rising part of the product life cycle curve in the maturity stage. The diagram on the left hand side shows the percentage of the users classified into heavy, medium and low categories. The right hand side shows the revenue share earned from the three types of users. Connect, keeping in mind the importance of the customer retention, values its heavy users the most and constantly indulges in service innovation. But, since heavy users comprise only 15 - 20% of the population the other segment cannot be neglected. The population which has just realised the importance of internet has to be roped in. It is for this reason that the service provider offers a plethora of incentives and discounts. Concerts like the "Freedom concert" are being organised by Connect in order to promote sales. The media channel is chosen with economy in mind. The target segment is not very concrete but, there is an attempt to focus on those who can afford. The print advertisements and hoarding are placed in those strategic areas which most likely to catch the attention of those who need a cellular phone. The product promise (which might cost different 1 higher) is an important variable in determining the target audience.

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DISTRIBUTION
Company

Franchisee

Distributor Dealers

Dealer Customer

Customer

The- company whose operations are concentrated in and around Amritsar.

It 27

Franchisees and 15 Distributors- They also have 8 'instant access cash card counters- Each franchises or distributor can have any number of dealers under him as long as the person is approved by the Connect authority. Each franchises has to invest Rupees Ten Lakhs. to obtain a franchise and should employ an officer recruited by Connect. This person acts as an liaison between the company and the franchises. The franchises can it any number of dealers as long as their territories do not overlap. But unfortunately Connect has not been very successful in controlling territorial overlaps of dealers. The franchises can carry out his 1 her own promotional strategy. For this the. company contributes 75% of the money and the franchises contributes 25% of the money. The dealers under the franchisee receive the same commission. The franchises and the dealer obtain the feedback from the customers and they are sent through the liaison officer on a day-to-day basis to Connect. The dealer has to invest Rupees. One Lakh as an initial investment. The dealer of Connect are not allowed to provide any other operators' service. Target set for distributors and the dealers is 100 -150 activations per month. Hence the dealers can also go for their own promotions like banners and discounts on festivals etc. The dealer provides service promptly. The consumer on providing the bill of purchase for the handset and proof of residence has only to wait an hour before getting connected. The staff of the dealers and the franchisees are provided training by the Connect personnel.

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The complaints encountered by the franchisees and dealers are either handset being nonfunctional or the SIM Card not getting activated. Anything more complicated is referred to the main Connect office in Delhi.

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WHAT DOES CONNECT OFFER?
With Connect the subscriber wouldn't just get a personal network that lets him/her be in touch, always, but also gets a host of benefits that let him/her manage his/her time like never before. A Connect subscriber is provided with a Broadband Connection.

PRODUCT LIFE CYCLE
The pattern of Internet subscriber growth observed elsewhere in the world reveals that the growth in the market is Initially slow followed by a sharp acceleration, but so far that has not happened in India. As far as the Product Life Cycle is concerned. Indians are at the beginning of the maturity stage.

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MARKETING OBJECTIVES

Introduction Create product awareness and trial

Growth Maximise market share

Maturity Maximise profits whole defending market share

Strategies
Product Offer a basic product/ service. Offer value added services Increase in number of value added services. Price Charge cost- plus Price to penetrate market Distribution Build selective distribution Build Intensive distribution. Price to match or best competitors Build more intensive distribution. Advertising Build product awareness among early adopters and dealers. Sales Promotion Use heavy sales promotion to entice people to subscribe. Increase to build and maintain relationships with customers. Anderson (2008), in his single executive interview titled Developing a route to market strategy for mobile communications in rural India An interview with Gurdeep Singh, Operations Director, Mohali, Hfcl India suggests that managers need to go beyond traditional approaches to serving the poor, and innovate by taking into account the unique
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Build awareness and interest in the mass market

Stress brand differences and benefits.

Increase to encourage brandswitching.

institutional context of developing markets. His practical implication says that the experience of Hfcl Infotel in India provides some important lessons for internet network operators (INOs) and other firms in other developing markets who are hoping to serve the rural poor: Hfcl has recognized the value of corporate and noncorporate partners. The company has proactively established relationships with individual entrepreneurs, and has provided has provided development support to other partners such as distributors. The company has recognized the value of leveraging existing local institutions, and has seen gaps in local infrastructure or missing services as potential opportunities rather than barriers to growth. The company has seen the rural market as an opportunity not just an obligation to be served because of universal service obligations. Also this article demonstrates that INOs can deliver availability and affordability to achieve increased individual or household penetration through business model innovation Mani (2008) addresses a number of issues arising from the growth of telecom services in India since the mid-1990s. It also discusses a number of spillover effects for the rest of the economy and one of the more important effects is the potential to develop a major manufacturing hub in the country for telecom equipment and for downstream industries such as semiconductor devices. The telecom industry in India could slowly become an example of the service sector acting as a fillip to the growth of the manufacturing sector. A beginning towards this has been made. The formation of a Telecom Equipment Export Forum and the announcement of the Indian Semiconductor Policy 2007 are steps in this direction. Success crucially depends on the response of the private sector to these incentives. Given the importance that a regulatory agency can play in this crafting, no effort should be lost in strengthening the powers of the TRAI. The benefits to the Indian economy from having both a strong services and manufacturing segments in the telecom sector cannot be undermined. Narayana (2008) estimates the contribution of telecommunication (or telecom) services to aggregate economic growth in India. Estimated contribution is distinguished between public and private sectors to highlight the impact of telecom privatization on economic growth. Knowledge of policy determinants of demand of telecom services is shown to be essential to enhance growth contribution of telecom services. Using a recent sample survey

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data from Karnataka State in South India, price and income determinants of demand for telecom services are estimated by capacity of telephone exchanges. Estimation results offer evidence for significant negative own price elasticity and positive income elasticity of demand for telecom services Sharma (2009) deals with the major challenges faced by India telecom equipment manufacturing sector, which lags behind telecom services. Only 35% of the total demand for telecom equipment in the country is met by domestic production. This is not favourable to long-term sustained growth of the telecom sector. The country is also far behind in R&D spending when compared to other leading countries. India needs to see an increase in R&D investment, industry-academia-government partnership, better quality doctoral education and incentives to entrepreneurs for start-ups in telecom equipment manufacturing. In 200607, 65% of the total consumption of equipment was met through imports. This trend has far-reaching implications for the economy and should not be allowed to continue for long. In a country like India which has a problem of massive unemployment, the manufacturing sector should be promoted to create more employment opportunities. Shah (2010), has analysed Indian telecom industry and studied the sector keeping in mind three companies; namely Bharti, R.Comm and Connect in the background of recent global meltdown. The study suggests that though there is no sign of slowdown in this sector, but surely a strong turmoil is going on in the industry. The study states that the sector is fairly immune from the current economic downturn & does provide a good defensive bet in medium term. With the help of newer technologies, wireless penetration is expected to increase in the near future, which is basically fuelling the growth of the sector. While the 3G / Broadband adoption would ensure long term growth momentum, the article has thoroughly investigated about the intense competitive scenario, pricing pressure, high capital intensity & substantial regulatory uncertainties currently faced by the industry. The article has also described the cause of being relatively safe of this industry. The causes described by Shah are increasing rural coverage, rising affordability, declining handset/subscription costs, substantially low tariffs & established brand/distribution. However, the study also cautions the telecom industry that a steeper economic slowdown could start impacting the subscriber usage patterns as well as operator capital investments & thereby could substantially restrict revenue growth rates going forward.
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RESEARCH METHODOLOGY
Research is the systematic and objective search for the analysis of the information relevant to the identification and solution of any problem in the field of channel development. The objective behind this project was to get a deep insight into the answer to the question “what are the general problem faced by subscribers and what they expect from Broadband service and study of current internet market.” The objects of survey were the internet user of various telecom companies.

RESEARCH OBJECTIVE
To study the various below the line activities and its impact on customers • To know the satisfaction level of customer regarding the services of connect service provider.

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RESEARCH DESIGN
Research design indicates the methods and procedure of conducting research study. Research design can be done in following three types:1 Exploratory Research:Exploratory research focuses on the discovery of new ideas and is generally based on secondary data. 2 Descriptive Research:Descriptive research is undertaken when the researcher want to know the characteristics of certain groups. 3 Causal or Experimental Researches:An experimental research is undertaken to identify causes and effect relationship between two variables. The Research Design is: Descriptive Research Design

Data Collection and Sampling: Tools for data collectionThe methodology adopted for this project is exploratory in nature since there is no hypothesis that has to be tested. The conclusions have been drawn by exploratory research work. There have been two sources of information collected: Primary Sources I have met retailers and customers of the Connect company and have been able to get first hand information regarding the product, its features and the buying patterns of the product. Their input has been valuable. Secondary Sources Secondary source has played a vital role to play in this report. A good amount of data has been collected from various published articles and reports found in magazines and journals. Another vital source has been the Internet and particularly the companies own website.
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Sampling Unit:
The researcher has design a sampling plan that is consist of five decisions.
I)

Sampling technique: Who is to be surveyed?

The Researcher has selected youngsters, businessmen, and housewives, employees to conduct survey and to measure satisfaction level. II) Sampling types: There are two types of sampling i.e. Probability Sampling and Non – probability Sampling. i) Probability Sampling : Probability sampling means each unit of the universe has equal chance of getting selected. ii) Non – Probability Sampling:Non – Probability sampling contains following methods:a) Judgment Sampling. b) Convenience Sampling. c) Panel Sampling. d) Quota Sampling For this purpose the researcher has used non probability convenience sampling.

III) Sample Size:

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Sample size means limited numbers of respondents covered under the research study from a population and the researcher has taken a survey of 200 respondents to know the satisfaction level of customer.
IV)

Sampling Area: The researcher’s area for survey was:
 

Different Areas of Amritsar City. Direct Marketing Executives of Connect Providers.

 Offices Of Connect

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LIMITATIONS
Every attempt will be taken to obtain the error free and meaningful result but as nothing in this world is 100% perfect I believe that there will still the chance for error on account of following limitations1. Connect doesn’t provide any dongle 2. Revenue cost is high 3. Network coverage area 4. High plan rate for middle person 5. The findings of the study were based on the opinion of the may be biased.
6.

respondents, which

The study is confined to Amritsar only, thus the conclusions based on it will represent Amritsar only.

7. Lack of time and finance prevented from carrying out in depth study. 8. Hesitation and ignoring attitude of the respondents was also a major hurdle in the study that had wasted a lot of time. 9. Not possible to cover whole of population size, this is inability of sample size

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Data Analysis and Interpretation

Dear Customer, As the management trainee of connect company, we want your opinion regarding our product to serve you better. Please don’t be biased during answering following questions Q1.)Do you use internet? No. of respondents Yes No 200 180 20

200 180 160 140 120 100 80 60 40 20 0 Yes No

INTERPRETATION-: In this I analyze that how many persons from our sample survey uses internet at their places and from the sample survey of 200 it is clearly described as 180 uses and 20 are not using.

Q2.)Which service plan of connect do you use for internet?
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Services

Commercial 40

Residential 120

INTERPRETATION-: In this ,I analyze that how many people are using which services according to their needs and preferences.The data above is mentioned as major people from our sample survey uses commercial or residential

Q3) From which source you came to know about Connect?
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Sources Canopies Hoardings Mouth publicity Viral Marketing

No.of respondents 60 25 40 35

Percentage 37% 16% 25% 22%

Viral Marketing 22%

Canopies 37%

Mouth publicity 25% Hoardings 16%

INTERPRETATION-: 37% of the respondents are aware about Connect through Canopies, 16% are aware because of Hoardings while 25% and 22% of the respondents are aware because of Mouth Publicity and Viral marketing respectively.

Q4.) How would you rate BTL activities on the behalf of company ? Reasons No of respondents Percentage
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Good Average Poor

75 50 5

58% 38% 4%

Poor 4% Average 38%

Good 58%

InterpretationIn this I analysed that below the line activities make good impact on the respondents.

Q5) Do you think that BTL activities are perfect promotional tool for promoting Connect sales? No. of respondents 130 Percentage
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Yes No

55 75

42%

58%

Yes 42% No 58%

InterpretationIn this I analysed that 42% of respondents think that below the line activities are perfecr promotional tool and 58% disagree with it.

Q6) Since how long you are using Connect Services?

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Time period Less than 1 month 2-6 months 6-12 months More than 1 year

No. of respondents 5 25 30 70

Percentage 4% 19% 23% 54%

80 70 60 50 40 30 20 10 0 Less than 1 month 2-6 months 6-12 months More than 1 year

INTERPRETATION: Major Respondents using Connect are old customers. 54% of the respondents use Connect services from past more than 1 year while the lowest is 4% respondents using Connect services less than 1 month

Q7.)Do you think that internet speed in terms of Mbps,is satisfactory for the users using connect internet?
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No. of respondents Yes No

130 110 20

Percentage 85% 15%

120 100 80 60 40 20 0 Yes No

INTERPRETATION-: In this I interpretated that how many customers are satisfied with the downloading speed of the internet.

Q8.)Do you think that plans and tariffs available in connect are not costly and easily approachable for middle group also? No. of respondents Yes 130 100 Percentage 77%
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No

30

23%

120 100 80 60 40 20 0 Yes No

INTERPRETATION-: In this ,I analyze the customer perception of mind that if the customer is satisfied with the rate and validity of plans and tariffs.and data shows that out of 130 sample space 100 are satisfied an 30 are not satisfied.

Q9) Do you call at customer care? Suggestions No. of respondents Yes 121 No 9

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No 7%

yes 93%

Interpretation: 93% of the respondent calls at customer care while 7% respondents do not call at customer care.

If yes, how often you call at customer care?

Time Period Daily Once a week Once a month Occasionally

No. of respondents 25 21 40 35

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Occasionally 29%

Daily 21%

Once a week 17% Once a month 33%

INTERPRETATION Major respondents here call customer care occasionally. 33% respondents respondents call customer care once a month while 17% and 21% of respondents call once a week and daily respectively

Q10) For what reason you call at customer care? Reasons Value Added Services Information regarding new schemes Complaining Other queries No. of respondents 29 30 42 35

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Other queries 26%

Value Added Services 21% Information regarding new schemes 22%

Complaining 31%

Interpretation: 31% of respondents call at customer care for complaining purpose while 26%, 22% and 21% of respondents call customer care for other queries, information regarding new schemes and value added services respectively.

Q11) Rate the following parameters of connect on the basis of your satisfaction level Services Network Speed Highly satisfied 75 49 Satisfied 15 19 Neutral 19 35 Dis satisfied 17 24 Highly Dis satisfied 4 3
Weighted Average

4.06 3.64

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New schemes and offers Call Rates Value Added Services

3

34

50

33

10

2.87

25 22

30 34

43 39

29 29

3 6

3.75 3.26

80 70 60 50 40 30 20 10 0 1 2 3 4 5 Network Speed New schemes and offers Call Rates Value Added Services

Interpretation From the above analysis we come to know that the customers are more satisfied and rate high ranking to the network parameter

Network: PurposeThe purpose of this analysis is to know the perspective of the customers of Connect regarding network service. Services Highly satisfied Satisfied Neutral Dis satisfied Highly Dis
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Network

75

15

19

17

satisfie d 4

Network

Poor Average 3% 13% Fairly Good 15% Very Good 12%

Excellent 57%

Interpretation: Here major respondents are satisfy with the network coverage. 57% of the respondents are rate the Connect’s network excellent, 12% rate it very good, 15% rate it fairly good while 13% and 3% rate it average and poor

Speed: Purpose: The purpose of this analysis is to know the perspective of the customers of connect regarding speed.

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Service Speed

Highly satisfied 49

Satisfied 19

Neutral 35

Dis satisfied 24

Highly Dis satisfied 3

Speed

Poor Average 2% 18%

Excellent 38%

Fairly Good 27%

Very Good 15%

Interpretation: Here major respondents are satisfied with the speed of connect. 38% of respondents rate it excellent, 15% rate it very good, 27% rate it fairly good, 18% rate it average, 2% rate it poor.

New Schemes and Offers: Purpose: The main purpose of this analysis is to the respondent’s perspective related to the new schemes and offers provided by Connect.

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Service

Highly satisfied schemes 3

Satisfied

Neutral

Dis satisfied 33

New

34

50

Highl y Dis satisfi ed 10

and offers

New schemes and offers

Excellent Poor 8% 2% Very Good 26% Average 25%

Fairly Good 39%

Interpretation: Here major respondents are not much satisfied with new schemes and offers of Connect. 25% respondents rate new schemes and offers as average, 39% respondents rate it as fairly good, 16% rate it as very good while 8% and 2% rate it as poor and excellent respectively.

Call Rates:
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Purpose: The purpose behind this analysis is to know about the perception of Connect customers regarding different call rates. Service Highly satisfied 2 Satisfied Neutral Dis satisfied 19 Highl y Dis satisfi ed 3

Call Rates

20

43

Call Rates

Excellent Poor 3% Very Good 2% Average 23% 22%

Fairly Good 50%

Interpretation: Major percentage of respondents are not happy with the call rates of Connect. 50% of respondents rate call rates of connect as fairly good, 23% rate it as very good, 22% rate it as average while 3% and 2% respondent rate it as poor and excellent respectively.

Value Added Services: Purpose:

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The purpose behind this analysis is to know about the perception of Connect customers regarding Value Added Services. Service Highly satisfied Added 22 Satisfied Neutral Dis satisfied 29 Highl y Dis satisfi ed 6

Value Services

34

39

Value Added Services

Poor Excellent 5% 17% Average 22% Very Good 26% Fairly Good 30%

Interpretation: Value added services of Connect are quite feasible as compared to some of the other services. 30% respondents rate it as fairly good, 26% rate it as very good, 22% rate it as average while 17% and 5% rate it as excellent and poor respectively.

Q12) Would you like to recommend Connect to others? Suggestions No. of respondents Yes 115 No 15
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No 12%

Yes 88%

Interpretation: 88% of the Connect customers would like to recommend Connect services to others while 12% of the connect Customers won’t recommend to others

FINDINGS
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180 users use internet and 20 are not using out of 200 respondents 60 of the respondents are aware about Connect through Canopies, 20 are aware because of Hoardings while 30 and 20 of the respondents are aware because of Mouth Publicity and Viral marketing respectively. Major Respondents using Connect are old customers. 70 of the respondents use Connect services from past more than 1 year while the lowest is 5 respondents using Connect services less than 1 month 110 customers are satisfied with the downloading speed of the internet from 130 customers. In this the customer is satisfied with the rate and validity of plans and tariffs.and data shows that out of 130 sample space 100 are satisfied an 30 are not satisfied 93% of the respondent calls at customer care while 7% respondents do not call at customer care. Major respondents here call customer care occasionally. 33% respondents respondents call customer care once a month while 17% and 21% of respondents call once a week and daily respectively

 130 users use connect internet out of 180

 34% of respondents call at customer care for complaining purpose while 30%, 19% and 17% of respondents call customer care for other queries, information regarding new schemes and value added services respectively.

88% of the Connect customers would like to recommend Connect services to others while 12% of the connect Customers won’t recommend to others

CONCLUSION

From above the details I conclude that 73% Connect users preferred to remain with Connect.

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Also good no. of users who were willing to switch from their respective subscribers showed interest in Connect. Hence, these statistics imply a bright future for the company.

 Every customer is aware about connect service.

Major customers of connect are old customers so many of the respondents are satisfied with the services of connect and thus they would like to recommend connect to others .

 Customers are satisfied from its downloading speed.

BIBLIOGRAPHY
Books:
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Marketing Management – Philip Kotler, Kevin Lane Keller

Websites   http://en.wikipedia.org/wiki/Videocon http://en.wikipedia.org/wiki/Marketing_strategy http://en.wikipedia.org/wiki/Research_methodology

 http://bora.nhh.no/bitstream/2330/1919/1/Saplitsa%202008.pdf  www.anacom.pt/render.jsp?contentId=606658  www.iimcal.ac.in/community/consclub/reports/telecom.pdf  www.ifotelconnect.com  www.videocon.com

QUESTIONNAIRE

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NAME: ____________________________________ ADDRESS: ____________________________________ OCCUPATION: ____________________________________

Q1.)Do you use internet? No. of respondents Yes No Q2.)Which service plan of connect do you use for internet? Services Commercial 40 Residential 120

Q3) From which source you came to know about Connect? Sources Canopies Hoardings Mouth publicity No.of respondents

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Viral Marketing

Q4.)What is the impact of Below the line activities ? Reasons Good Average Poor No of respondents

Q5) Do you think that BTL activities are perfect promotional tool for promoting Connect sales?

No. of respondents Yes No

Q6) Since how long you are using Connect Services?

Time period Less than 1 month 2-6 months 6-12 months More than 1 year

No. of respondents

Q7.)Do you think that internet speed in terms of Mbps,is satisfactory for the users using connect internet? No. of respondents Yes No
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Q8.)Do you think that plans and tariffs available in connect are not costly and easily approachable for middle group also? No. of respondents Yes No Q9) Do you call at customer care? Suggestions No. of respondents Yes No

If yes, how often you call at customer care? Time Period Daily Once a week Once a month Occasionally No. of respondents

Q10) For what reason you call at customer care? Reasons Value Added Services Information regarding new schemes Complaining Other queries No. of respondents

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Q11) Rate the following on the basis of your satisfaction.

Services

Highly satisfied

Satisfied

Neutral

Dis satisfied

Highly Dis satisfie d

Network Speed New schemes and offers Customer Care Call Rates Value Added Services Q12) Would you like to recommend Connect to others? Suggestions No. of respondents Yes No

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