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“IMPACT OF ADVERTISMENT ON POTENTIAL CUSTOMERS: A STUDY ON RELIANCE PRODUCTS.

In partial fulfillment of the requirement for Master’s Degree in Management Studies (MMS)

Mr. SAYYAD MONISUDDIN Roll No: B-51

Specialization: Marketing

Academic Year: 2012-2013

Under the guidance of

DR. PREETHI UPAMAKA SRINIVAS UNIVERSITY OF MUMBAI Anjuman-I- Islam’s Allana Institute of Management Studies (AIAIMS) Mumbai

CERTIFICATE

This is to certify that Mr. SAYYAD MONISUDDIN a student of Anjuman-IIslam’s Allana Institute of Management Studies (AIAIMS) pursuing final year in MMS has completed the dissertation report on “IMPACT OF ADVERTISMENT ON POTENTIAL CUSTOMERS: A STUDY ON RELIANCE PRODUCTS.” in the Academic year 2012 – 2013.

This project work is his own work and is of sufficiently high standard to submit to the University in partial fulfillment of MMS degree.

Project Guide DR. PREETHI UPAMAKA SRINIVAS

Director Dr. LUKMAN PATEL

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DECLARATION
Project Title: “IMPACT OF ADVERTISMENT ON POTENTIAL CUSTOMERS: A STUDY ON RELIANCE PRODUCTS.” Submitted on: 31-03-2013

Under the Guidance of: Dr. Preethi Upamaka Srinivas

College: Allana Institute of Management Studies (AIAIMS)

This is to declare that I, Mr. SAYYAD MONISUDDIN student of Allana Institute of Management Studies (AIAIMS) Final semester (Marketing) hereby declare that I have completed the project on “IMPACT OF ADVERTISMENT ON POTENTIAL CUSTOMERS: A STUDY ON RELIANCE PRODUCTS.” in the Academic year 2012– 2013.

The information submitted is true and original to the best of my knowledge.

Date: 31-03-2013 Place: Mumbai

(______________) Mr. SAYYAD MONISUDDIN MMS II Year (2012 - 2013) – B-51 Specialization – Marketing

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ACKNOWLEDGEMENT
It is a matter of great satisfaction and pleasure to present this report on “IMPACT OF ADVERTISMENT ON POTENTIAL CUSTOMERS: A STUDY ON RELIANCE PRODUCTS.”

I take this opportunity to owe my thanks to all my faculty members for their encouragement and able guidance at every stage of this report. I wish to take this opportunity to thank our institute’s director Dr. Lukman Patel, whose guidance and support has been an important factor for my success in my entire MMS programmed.

I also wish to thank my project guide Dr. Preethi Upamaka Srinivas who gave guidance wherever required.

I express my gratitude to all those who have directly or indirectly helped me to make this project.

I wish to thank my parents who have always supported me and appreciated my work wholeheartedly and been my inspiration.

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INDEX

SR.NO. 1 2 3 4 5 6 7 8

PARTICULRS INTRODUCTION ABOUT THE TOPIC CONSUMER BEHAVIOUR THEORIES COMPETITIVE ANALYSIS RESEARCH OBJECTIVES AND METHODOLOGIES DATA ANALYSIS AND INTERPRETATION CONCLUSION SUGGESTIONS

PAGE NO. 11 27 36 42 49 56 61 63

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LIST OF TABLE

SR.NO. 1 2 3 4 5 6

PARTICULRS AIRTEL DATA CARD TABLE TATA USB MODEM TABLE VODAFONE DATA CARD TABLE AVERAGE ATTITUDE PERCEPTION SCORE PRICING TARRIF PLANS OF RELIANCE SCALING ABOUT RELIANCE COMMUNICATION ADVERTISEMENT

PAGE NO. 44 45 47 48 54 60

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QUESTIONNARIE TABLE

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LIST OF GRAPHS & FIGURES

SR. NO 1 2 3

GRAPHS & DIAGRAMS DATA INTERPRETATION OF CUSTOMER SURVEY INCOME LEVEL TABULATION

PAGE NO

57 58

MAIN COMPETITIVE LANDSCAPE

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LIST OF ABBREVATIONS

LTV – Life Time Validity CAF – Customer Application form GSK – Get started Kit FWP – Fix Wireless Phone STV – Special Tariff voucher OTAF – Over the Air Fulfillment FRC – First Recharge Coupon GSM – Global System of Mobility CDMA – Code Dual Module Assessment

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EXECUTIVE SUMMARY
These days’ organizations are looking forward to obtain competitive edge over their competitors through highly developed employee skills, distinctive organizational cultures, management processes and systems which are in contrast to traditional emphasis on transferable resources such as equipment that can be purchased any time by the competitors.

In reliance also much work is done to analyze the impact of advertise and to develop the marketing competencies so as to have better results. In this context a part from the various departments the marketing sales department has got a crucial role to play.

In my study I have tried to study the consumer behavior towards advertisement and Strength, Weakness, Opportunity and Threat analysis of reliance communication with competitor. For this I had to go to different retailers and customers to find out what actually they think of the services given by the company.

The research conducted with the objective to judge the impact of marketing on sales for Reliance gave me the opportunity to obtain feedback from the retailers and customers both permanent and temporary, thereby analyzing it and finally obtaining the imperative decision.

Similarly as a part of my schedule, I not only analyzed the impact of advertisement and consumer behavior and also Strength ,Weakness ,Opportunity and Threat was analysis for reliance but also got a chance to meet different retailers and know what are the problems they are facing and how we can solve their problems. I also analyzed the Channel distribution and got to know how communications flow from retailer to consumer.

Thus the task was not only restricted in the purview of interaction with the retailers but also providing an insight about understanding the channel distribution.

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Thus the induction programmed followed by the associate manual not only makes the employees familiar with the company but also make them enthusiastic to face challenges and motivate to work for the growth of the organization.

The second part consists of data and their analysis, collected through a survey done on 50 people. It covers the topic “impact of advertisement”. The data collected has been well organized and presented.

Hope the research findings and conclusions will be of use. It has also covered why people are not happy with the service provided by the salesman. The advisors can take further steps to approach more and more people and indulge them for taking their advices. The whole task was manual and interactive, giving me a chance to have a word with the customers.

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CHAPTER 1: INTRODUCTION

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1.1 ADVERTISING
Advertising is a form of communication intended to persuade its viewers, readers or listeners to take some action. It usually includes the name of a product or service and how that product or service could benefit the consumer, to persuade potential customers to purchase or to consume that particular brand. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail. Advertising may be placed by an advertising agency on behalf of a company or other organization. Organizations that spend money on advertising promoting items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement. In 2007, spending on advertising was estimated at more than $150 billion in the United States and $385 billion worldwide.

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1.2 CONCEPT OF RELIANCE COMMUNICATION
The marketing strategy of Anil Ambani has made millions of Indians happy, they got the best mobile tariffs in the world-local call costs at 15 paisa/minute, and STD call at 40 paisa/minute. And also awarded the Telecom person of the year 2007. 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 fivehour 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 petrochemicals-business only. Apart from that telecom needs a service-oriented mindset, critics felt. What they did not remember was how the family had served its millions 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 Sabah in June 2004, as an independent member. Ambani chose to resign voluntarily on March 25, 2006. 13

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. 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 paisa per minute, STD 40 paisa, 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 cr. buyout of Yipes Holdings.

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Reliance Communication Achiever's Pride
Anil D Ambani is the CEO of Reliance Communication. He undertook financial restructuring of Reliance communications to spend Rs 16,000 cr. to expand and strengthen network coverage. After expansion of Reliance Communications it will have the single largest wireless 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 cr. an increase of 34%.The Net Profit rises to Rs 3,163 cr. an increase of over 600%.Revenues of the wireless business increased by 46% to Rs 10,728 cr.The broadband of reliance communication achieved revenue growth of 123% to Rs 1,144 cr.The market capitalization crossed Rs 100,000 cr.and it will add near about 23,000 more towers.

Telecom services will be available in over 23,000 towns and 600,000 villages and the next generation DTH network will be launched before end of the year. Reliance Communications' wireless subscriber base grew to over 28 million 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 cr. This year alone we will invest over Rs 20,000 cr. 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.

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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 cr. 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. As per its expansion plan, Reliance Communications will have the single largest wireless network in the world, covering over 900 million 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. 16

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.

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1.3AN 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, wire line, 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 kilometers of a pan-India fiber optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wire line) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applications, and consulting. 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.

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We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.

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1.4 HISTORY OF THE ORGANISATION
In 2009 on12 January reliance communication launches GSM services in Delhi. On 31 January 2009 all new reliance mobile GSM connections come with lifetime validity at a nominal charge. On 5th of February 2009 reliance GSM service in J&K.

On 12 February 2009,R-Globalcom bags work orders from 3 global retailers.On 13 February 2009 the company launches 50 min STD pack in 35 Rs. On GSM 26 February 2009 reliance communication launches voice-based mobile navigation service.9 June 2009 reliance communication has entered into joint venture with Kribhco (Krishna Bharti cooperative ltd.).28 February 2009 reliance communication
adds 3.3.-mn. Wireless customers in Feb 9 march 2009 reliance communication places

300 cr.Modem orders with huawei,ZTE ZTE10 march 2009 reliance communication adds record 11 m subscribers13 march 2009 reliance communication unveils new wireless net service. Then on 22 march 2009 reliance communication launches a new format of reliance mobile store then on 25 march 2009 reliance communication postpaid services for in U.P & uttarakhand.On 1 June 2009 reliance communication signs Hrithik Roshan as brand ambassador .On 8 June 2009 reliance communication bagged a 125 cr.

WAN contract from global consultancy major Mott Macdonald. Then on 11 June 2009 reliance communication to offer BlackBerry services for Rs. 299.On 18 june 2009 reliance mobile in deal with EA mobile.In 2008 January 12 reliance communications receives Start-up GSM Spectrum. In January 16 Yahoo partners with reliance communications to provide Yahoo One Search for its CDMA and GSM customers. January 31 reliance communications Q 3 Net Profit increases by 48.5% and revenues up by 29.8 %. Remains the most profitable telecom company in India.

February 4 reliance communications offers lifetime validity at Rs 199.Reliance communications subsidiary infracted files draft red herring prospectus with SEBI.February 5 reliance mobile strengthens its religious content portfolio on mobile by tie-up with Sadhana TV. On February 14 reliance communications in partnership with canvas launches multiplayer mobile games. February 19 HDFC Bank ties up with reliance communication which turns every Reliance Mobile into a credit card. 20

On February 27 reliance communications consolidates global telecom business under “Business Globalcom”.Reliance communications forays into international mobile market with GSM license in Uganda. On March 3 reliance communications drops prices of internet data cards. On March 10 reliance communications announces ESOPs for over 20,000 employees. On March20 reliance communications and HTC forge strategic alliance. On March 27 corporation bank launches banking services on reliance mobile world. On April 1 reliance communications forays into IT space for launches of reliance technology Services Company. On April 9 reliance communications launches educational portal on reliance mobile phones.

On April 25 reliance globalcom unit reliance infocom BV, Netherlands acquires global WiMAX Operator wave in world. On April 29 reliance communications announces unlimited free STD calls. On April 30 reliance globalcom launches passport, global SIM reliance communications net profit up by 70.8% to Rs 5,401 cr.On May 2 reliance communications’ net profit up by 70.8% to Rs 5,401 cr. (US$ 1,350Million), Revenues higher by 31.8% to Rs.19, 068 cr. (US$ 4,765 million) and EBIDTA increases by 43.3% to Rs.8, 199 cr. (US$ 2049 million).On May12 reliance communications and alcatel form joint venture to offer managed network services to Telco’s across the globe.

On May 26 reliance globalcom acquires UK based VANCO group limited. On June 24 reliance globalcom, stealth communications forge strategic alliance to extend VOIP network across 50 countries. On July 12 CA exam results on reliance mobile came. On July 22 reliance communications mobile subscriber base crosses 50 Million. On July 29 CA professional exam results on reliance mobile.

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1.5 BRIEF STUDY OF THE ORGANIZATION
CHAIRMAN’S PROFILE

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 limited. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing Director of Reliance Industries Limited (RIL), India’s largest private sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company’s management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country’s first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to rise over US$ 2 billion. He also steered the 100-year Yankee bond issue forthecompanyinJanuary1997.

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. 22

He is currently a member of:
   

Wharton Board of Overseers, The Wharton School, USA Board of Governors, Indian Institute of Management (IIM), Ahmadabad 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 Plats 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 2001Selected by Asia week magazine for its list of 'Leaders of the Millennium in Business and Finance' and was introduced as the only 'new hero' in Business and Finance from India, June 1999.

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CHAPTER 2: INTRODUCTION OF THE TOPIC

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INTRODUCTION OF THE TOPIC:

The Reliance Net connect Broadband+ USP
  Widest Coverage 35 + towns Fastest Internet in India with High Data transfer Rates( Reliance Net connect Broadband+)      Wide range of tariffs catering to all requirements Affordable Limited Mobility option Unlimited Night time usage option Latest technology –Only operator to provide peak speed of 3.1 Mbps Fastest Speed-3.1 mbps upload and 1.8 mbps download average 600-1300 kbps DL (Compared to Tata Indicom Photon+, BSNL EVDO services which Mbps DL, 153Kbps UL and Avg. 300-500 kbps DL)  Lower Latency – about 150 ms on Net connect Broadband+ vs.300 ms on High Speed 1x offer: 2.4

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Backward compatible with High Speed 1x service offering seamless connectivity across Reliance Network of 20,000 towns and 4.5 lace. villages

Customer Segmentation User Profiles
• Profile / Profession of customer

Corporate Executive

Self-employed professional (Doctor/Lawyer/CA‟s etc)

Entrepreneur (Stock Broker, Traders etc)

Student

Homemaker & Young at Heart

Usage Profile • Purpose for Internet usage / Applications used

Browsing

Stock trading

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Emailing

IM / Voice Chat

Social Networking

Online Gaming

Video streaming

Downloading (Music/movies)

Video Conferencing/chatting

• Usage Pattern

At home/office/on the move

Day time usage/ Night time usage or both

• Usage Device
Desktop / Laptop

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Value proposition for each user profile Increase productivity

Multi-location usage (at home & office etc)

Save time

Have work life balance

More information

Entrepreneur

Multi-location usage (at home & office etc)

Better workforce management

Quick access to information (online stock trading etc)

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Professional

Online research & download of research papers

(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 DL or any other person to the retailer’s shop

 Strength  USE OF POPULAR BRAND AMBASSADOR  HIGH MORAL APPEAL  Fast Activation Process  Network  Connectivity

 Weakness  NEEDMORE UNDERSTANDING  Distribution problem  MOREHIDDEN CONDITIONS  Product display is not proper.

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Opportunity  New Specialist application  New Market, Vertical, Horizontal  Competitors` Vulnerabilities  Competitor are very few     

Threat Political destabilization. New Entrants IT Development Market Demand Seasonality, Weather Effects

RELIANCE COMMUNICATION LIMITED

(3) WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE PROBLEM
 Customer Satisfaction  Retailer Satisfaction  Increase in Sale  Sales Promotion  Proper Distribution Channel

STRATEGIC WEAPONS OF RELIANCE
The sharpest weapon that a corporation can develop to survive and thrive, in the globalized market place is competitiveness. Its cornerstone, as articulated by strategy Guru Michael Porters is. Its ability to create more value, on a sustainable basis, for the customer than its rivals can. 30

The competitiveness of a corps flow from a clearly defined strategy, devised after analysis the different forces in the industry impacting on the company, According to Porter three generic alternatives:

Cost leadership, differentiation, or strategic focus.
Applying these principles along with the related ones of building entry barriers, erecting economics of scale, developing marketing competitors Reliance has attained global levels of competitiveness adopting a single unique route to attain competitive status (their competitive weapon is the scale of operations).

TECHNOLOGY
Reliance led achievement in manufacturing is, of course, its comment once process technology since its products do not need cutting edge. Not only has Reliance pushed its production capacity beyond normal levels, it has develop supervisor processes to increase the utilization and cost efficiency levels. Communication is the synergy of information and communication services brought about by the digitalization and convergence. In the fast moving and competitive knowledge era, Communication is not only a driver of growth but also competitiveness. Reliance Communication is revolutionizing telecommunication in India by provisioning services that would match with the leading operators of the most developed countries. These services are the outcome of state-of-the-art network technologies that have been inducted in the Reliance Communication network. Our network consists of the latest switching, transmission and access technologies. The core of the network consists of fiber deployed throughout the country. Deployed over the fiber media are the DWDM and SDH transmission technologies in ring topology to provide ultra-high bandwidth capacity and failure proof backbone.

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Besides circuit switched technologies, the backbone also has IP architecture and uses MPLS technology to carry data on an overlay network. In addition gigabit Ethernet provide broadband services on wire line access. The switching technology deployed in our network is based on a combination of wire line and wireless switches. While state-of-the-art digital feature-rich wire line switches meet the growing needs of Indian corporate. The CDMA 1X based wireless switches are advanced enough to provision not only quality spectrum efficient voice services but also 144 kbps of data rates besides SMS and MMS services. CDMA 1X provides an in-built connectivity to internet which gives users the power of accessing internet and data services anytime. These switching technologies enable us to provide high quality of voice and data services to give a new experience to users. The entire network is seamlessly integrated with the deployment of a range of operations and business support systems (OSS / BSS). These systems help make our operations more efficient and customer friendly. In addition, the state-of-the-art NOC helps us monitor our entire network at one place. Call center technologies deployed would help us give the best customer service.

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CHAPTER 3: CONSUMER BEHAVIOUR THEORIES

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1.1 Consumer perception and consumer behavior
According to Rice (1993), perception is the initiator of behavior. It can also be seen as a process of information extraction. Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture (Kotler,2000).Different people tend to perceive quite differently even when they are exposed to the same reality. A set of factors, e.g. individual responses, determine an individual’s perception process and lead to individual differences. The most important is that people’s perceptions are often more important than the reality in marketing (Kotler, 2000).

The study of customer behavior provides a sound basis for identifying and understanding the factors that influence consumers purchase on line. Schiff man and Kanuk (2000) state that the behavior that consumer display in searching, purchasing, and evaluating products/services is those that they expect to fulfill their needs.

Although perception and behavior are typically treated as two completely separate phenomena, i.e. the input and output respectively, it has been suggested that perception and behavior are in fact two sides of the same phenomenon and are closely related to each other (Rice, 1993).

In order to understand what customer perceive and how they act to affect their Perceptions, study of perception and behavior should be treated as one integral part.

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1.2 Consumer decision process
At present, the consumer decision process model has been well accepted. This model of purchase as decision process is explained in more detail by Thorley et al. (1975). Thorley’s decision model illustrates the type and shows there are a series of semi-discrete steps which take place over time for the buyers and purchasers.

1.3 Predispositions (Before Purchase)
According to Thorley et al (1975), the prospective buyer possesses a certain stock of cognitive content, including his own personality or self-concept, attitudes and opinions both in general and on specific products, and stored information and past experience. This stock has been formed as a result of his interaction with his environment over time, and it will help determine the environment in which he places himself in the future as well as influence his perceptions of that environment.

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1.4 Product Need
As a result of either cognitive activity or some environmental stimulus, the buyer recognizes a need which is capable of being satisfied by a product or service. In other words, the need is often triggered by internal or external stimuli. Some authors also take this need recognition stage as the entry point. Chas ton (2001) argues that the potential consumer will not implement any of the other steps in the buying process until need recognition has happened.

1.5 External Search
Thorley et al (1975) describe that this stage represents all search of the external environment for alternative solutions as well as for information helpful in evaluating these alternatives. The search for information occurs on an internal and external basis (Gilbert, 1999). The internal search for information from

previous experience might be relevant to the present purchase situation. The extent and nature of external search for information likely in any given purchase has been the subject of a great deal of research. When searching for information in the external environment (e.g., friends and family), consumers focus on those relevant attributes that are available and are diagnostic (Dick et al., 1990).

1.6 Evaluation of Alternatives
This stage consists of the physical and cognitive activities involved in comparing alternatives on the basis of information gathered from external search above. According to Kotler (2000), the consumer arrives at attitudes toward the various brands through an attribute evaluation procedure and most buyers consider several attributes in their purchase decision. These attributes used by consumers for evaluation are also called choice criteria. Jobber (2001) has made a good summary of these choice criteria. In fact, consumers attempt to optimize the tradeoff between product benefits, product costs, the desired personal utilities and other variables. 36

1.7 Purchase Activity
Purchase a c t i v i t y involves the actual final decision a n d p h ys i c a l a c t i v i t i e s involved in making (or not making) the purchase. This stage includes the actual transaction. However, as suggested b y Kotler (2000), p e r c e i v e d r i s k s of a

consumer can heavily influence his decision to modify, postpone, or avoid a purchase decision. Therefore it is necessary for marketers to understand factor that might provoke perceived risk in consumers and work out solutions to reduce that.

1.8 Post Purchase Behavior
This step is concerned primarily with the buyer’s use of the product purchased. After purchasing the product, the consumer will experience some level of satisfaction or dissatisfaction which will influence a consumers’ subsequent behavior. Dissatisfied consumers may abandon or return the product, they may even complain to the other group (Kotler, 2000). It is clear that satisfactions and dissatisfactions created by product performance will be important determinants of attitudes and information stored as inputs to future purchase decisions.

1.9 Predispositions (After Purchase and Use):
This stage suggests that following the purchase process, the buyer (or non-buyer) is left with cognitive content which may be quite different from that which was present at the beginning of the process. Buyers may change their attitudes,

information and experience due to reasons of time and events. All of these may serve to change substantially the nature of the decision process for future purchases of same type.

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CUSTOMER BUYING PROCESS

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CHAPTER 4: COMPETITIVE ANALYSIS

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1. Industry Analysis
Indian Telecom industry is one of the fastest growing telecom markets in the world. In telecom industry, service providers are the main drivers; whereas equipment manufacturers are witnessing growth and decline in successive

quarters as sales is dependent on order undertaken by the companies. Airtel, Reliance, Tata and Vodafone are some of the companies that are expected to spur the growth in AMJ08, as compared to AMJ07.

According to Cygnus estimates, telecom industry is expected to grow by 25% in AMJ08 as compared to AMJ07, in terms of sales. EBDITA and PAT are

expected to grow by 32% and 34% respectively in AMJ08 as cost expenses are being control by major companies like Airtel and Reliance. The major booster is the wireless mobile subscriber base; crossing over 261m in March 2008. Other services like Internet subscriber base has also provided significant impetus with its subscriber base reaching over 11m in March 2008.

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 Bharti Airtel
Bharti Airtel is India’s leading provider of telecommunication service. Airtel Data Card is the superior PC Data Card solution which delivers wireless internet capabilities to laptops and notebooks, by providing EDGE and GPRS technologies

in a single PC Card package. On an EDGE network, Airtel Data Card enables connection to the Internet using EGPRS. In areas where EDGE services are not available, the Airtel Data Card still enables reliable and secure data connections over GPRS. The tariff charges of Airtel’s data card are shown below.
Airtel Data Card Name of Bill Plan Datacard49 Datacard350 Monthly Fixed Charges Monthly Charges 49 350 Data Charges (Rs/Pulse) (All India) Rate Per Pulse 0.1 5 Pulse 10 KB 1MB Data Usage Discount Nil 500 Mb Default Voice Charge

Data card Data card 599 New 999 New

599 3 1MB 1 GB

999 0 1MB Unlimited Free

Local Outgoing (Rs/Min) (Kolkata, West Bengal, Sikkim and A &M Airtel to All 1.99 1.99 1.99 1.99 STD Outgoing (Rs/Min) Airtel to All 2.99 2.99 2.99 2.99 ISD Outgoing # Slab 1 6.4 6.4 6.4 6.4 # # Row 1 9.2 9.2 9.2 9.2 # # # Row 2 40 40 40 40 SMS (Rs/SMS) Local 1 1 1 1 National 2 2 2 2 International 5 5 5 5 100 Local Free 100 Local SMS/Month SMS Nil Nil SMS

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 Tata- Indicom
Tata-Indico currently at leading position in wireless data card market in India. Tata Teleservices’ Tata-Indicom data card sales have exceeded the 100,000 subscribers’ milestone. Using CDMA 1x technology, Tata-Indicom data cards offer wireless internet access. The recently launched Plug 2 Surf Whiz fits into a standard USB port available in most desktops and laptops. TTML's Plug 2 Surf Whiz offer is being promoted with outdoor campaigns across Mumbai and Maharashtra. The tariff charges of Tata-Indicom’s data card are shown below:
TATA USB Modem Plan Name Highlight Time Based Budget 150 Lowest rental

Fixed Charge Rs.150/month

Free Usage 300min

Additional Usage 50p/min 8AM 12AM:50p/min 12AM -8AM :25p/min

Value 325 Data Based ME Unlimited ME Economy ME Jumbo ME Max ME 6 ME 12 Voice Tariff Rs. /min Local STD

Free 1hr/day Unlimited usage Always On For Heavy Users Advanced Rental To TATA 50 Paisa Rs. 1.69

Rs 325/month

1800 Min (30 Hrs)

Rs.1099/month Rs. 500/month Rs. 650/month Rs. 900/month Rs. 3600/6month Rs. 6700/annum To Other Rs. 1 Rs. 2.65

Unlimited 512MB 1GB 2GB 1GB 1GB

N/A Rs. 2/MB Rs. 2/MB Rs. 2/MB Rs. 2/MB Rs. 2/MB

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 Bharat Sanchar Nigam Limited (BSNL)
Bharat Sanchar Nigam Ltd (BSNL) is a public sector undertaking, wholly owned by the Government of India. BSNL has decided to launch its Data Services on CDMA 2000 IX by using BSNL Internet Connect Card (ICC) based on broadband connection for laptop users in India. The CDMA IX ICC will provide Internet Service @144kbps to computer users on their laptops as well as on desktops.

This service will be available in all those locations wherever CDMA IX MSC based coverage is there. However, during roaming the said Internet connectivity will not work at present. The following two types of data Cards will be available for BSNL customers:

(A) Network Interface Card (NIC): For internet speed up to 144 Kbps.

(B) EVDO Card: Internet speed up to 2.4 Mbps. The Tariff of this service is around 550Rs/month for speeds up to 2.4Mbps in most cities in India. Though there are reports that the pricing differs based on cities and starts at 400Rs/month to 550Rs/month.

City Wire tariff plans charges data card are shown below: Pricing in UP Plan 1 - 1650 Down Payment + 400Rs/monthly Rent Plan 2 - 3600 Down Payment + 250Rs/monthly Rent Pricing in Jamshedpur (Jharkhand) Plan 1 - 2460 Down Payment + 750Rs/monthly Rent Plan 2 - 3600 Down Payment + 250Rs/monthly Rent Pricing in Chennai Plan 1 - 3500 Down Payment + 250Rs/monthly Rent

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 Vodafone -Essar (Erstwhile Hutchison Group)
The Hutchison Group provided GSM mobile services in 13 circles across the country. Its main equity partner is the Essar Group. Vodafone recently launched its wireless internet device like

Vodafone Mobile Connect Globe Trotter EDGE data card

Vodafone Mobile Connect USB Modem

Vodafone Mobile Connect USB Stick The tariff charges of Vodafone’s data card are shown below:

Monthly rental (Rs)

499

699

Free data Usage charges

500MB 5P/10KB

1GB 5P/10KB

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Average attitude perception score of each brand
Initial Eigen values
Total % of Variance Cumulative%

Extraction Sums Loadings
Total % of Variance Cumulative%

1 2 3 4 5 6 7

2.705 1.881 1.431 1.124 .827 .435 .768

24.201 14.443 13.563 9.688 8.032 6.437 6.407

24.401 31..768 52.338 64.075 70.221 78.334 82.451

2.805 1.798 1.502 1.543

24.542 16.547 13.516 10.872

23.294 41.643 54.543 63.098

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CHAPTER 5: RESEARCH OBECTIVES AND METHODOLOGIES

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(1) RESEARCH PROBLEM

 Collection of Data of other companies –Tata, Airtel, Idea & BSNL  Retailers some time gives wrong data  Limitation of time and money

(2) RESEARCH OBJECTIVE

 To know the demand of Reliance Net connect in the market.

 To help in development and introduction of new product and plans.

 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

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(3)

SUBJECT OBJECTIVE

To compare the Tata, Idea, and Vodafone’s HSD for analyzing the status of RCOM Bundle Offers.

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)

HYPOTHESIS

It has been partially assume that, “advertising does have the impact on

potential customers.”  The brand name and advertise partially affect the consumer buying

behavior.

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(5) INFORMATION REQUIREMENT
Complete Price structure of reliance communication, TATA, IDEA and VODAFONE’S offer which includes:-

  

Activation Charges Discount Offered Schemes offered

(6) SOURCES OF INFORMATION
 Data collected of the Company

Secondary Data

Internet

Retailers

Distributor

Sales Executives

Other Trainees (Runner)

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(7) SCHEMES, PRODUCTS

RELIANCE PRODUCT

     

Reliance Base Phone Reliance Mobile Reliance Data Card Reliance Voucher, E-Recharge Reliance PCO Reliance Broad Band

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PRICING TARRIF PLANS
Plan Name Monthly Rental Bundled Usage Usage Charges beyond Free Usage Rs. 2/- per MB Rs. 2/- per MB Rs. 2/- per MB Rs. 2/- per MB Unlimited Citywide Roaming

Pay As Rs. 299/Nil you Go Broadband Rs. 650/1 GB + 1 GB Plan Broadband Rs. 850/2.5 GB + 2.5 GB Plan Broadband Rs. 1099/- 5 GB + 5 GB Plan Broadband + Rs. 1099/Citywide Unlimited Plan Broadband + Rs. 1750/Unlimited Plan Unlimited Rs. 499/Unlimited @Night Night

Nationwide Nationwide

Nationwide

Nationwide

Unlimited

Nationwide

50 paisa Nationwide per minute during day (between 6 AM – 10 PM)

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RESEARCH METHODOLOGY Research methodology is a way to systematically do the job. It may be understood as a science of studying how research is done scientifically. The most desirable approach with regards to the selection of the research methodology depends on the nature of particular work, time and resources available along with the desire level of accuracy.

Research Type Data Source Research Instrument Type of Questionnaire Sampling Unit Sampling Method Contact Method

-

Descriptive Research Primary Data Questionnaires Structured Retailer and consumer Judgmental Personal Interview

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CHAPTER 6: DATA ANALYSIS AND DATA INTERPRETATION

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(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

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.

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Income Level Tabulation Income Group 8000 8000-12000 12000-20000 > 20000 Percentage (%) 42 34 18 6

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

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The main competitive landscape can be summarized below:

Room wire line- -----------------BSNL wire line- -----------------Tata wireless------------------Airtel wire line------------------RCOM wireless- ---------------BSNL wireless------------------

white color yellow sky blue red dark blue brown

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SCALING ABOUT RELIANCE COMMUNICATION ADVERTISEMENT

Scale Very good Good Satisfactory Poor Can’t say

Percentage 20 25 40 10 5

The survey revealed that 40% of the respondents Reliance advertise as satisfactory. This is a telling comment. However the survey also found out that 20% and 25% of the respondents Reliance advertise as very good and good respectively. There were 5% of the respondents who had nothing to say about the RIM.

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CHAPTER 7: CONCLUSION

58

CONCLUSION
Reliance Communication of Anil D.Ambani Group is very fast catching up with the market by providing economic internet rates. The market strategies adopted by its executives are bearing fruits and the company although being the Second one to enter the market. Nagpur 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, 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.

Most of the customers that are around 74% of respondents are satisfied with reliance communications brand, 10% of them push reliance communication brand to the average service and rest 16% customers are not satisfied with reliance communication brand due to claim pending.

It is concluded that the advertisement and promotional activities made by the reliance communication are able to change the buying behavior of customers.

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CHAPTER 8: SUGGESTIONS

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SUGGESTIONS REGARDING ADVERTISING
(1) 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.

(2) 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.

(3) Technical Expertise:The advertisement should show the company's 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.

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REGARDING SALES
1. IMPROVEMENT IN AFTERSALES SERVICE:There is a need of onsite service professional for dealing with customer problems. Which will result in satisfied customer which in turns lead to chain reaction of purchase.

2. Expansion in network coverage:Outer areas of Mumbai are yet to be covered; expansion will result in more market potential.

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

4. SALES PROMOTION
    Cash discount Premiums Appointment of sale promoter Financial schemes

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ANNEXURE 1 SAMPLE QUESTIONNAIRE

1) How many times did you see this advertisement? A)1 B)2 C)MORE THAN 2 D)NONE 2) Did you ever mention this advertisement to anyone? Yes No 3) Did anyone ever mention this advertisement to you? Yes No 4) How well did this advertisement catch your attention? Very Well Somewhat Well Undecided Not Very Well Not at all Well 5) How believable were the claims made in this advertisement? Very Believable Somewhat Believable Undecided Not Very Believable Not at all Believable 6) How well do you feel this ad informed you about the product? Very Well Somewhat Well Undecided Not Very Well Not at all Well

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7) How appealing did you find this advertisement? Very Appealing Somewhat Appealing Undecided Not Very Appealing Not at all Appealing 8) How convincing did you find this advertisement? Very Convincing Somewhat Convincing Undecided Not Very Convincing Not at all Convincing 9) How memorable did you find this advertisement? Very Memorable Somewhat Memorable Undecided Not Very Memorable Not at all Memorable 10) How creative did you find this advertisement? Very Creative Somewhat Creative Undecided Not Very Creative Not at all Creative 11) In general, how would you rate the quality of this advertisement compared to other ads of a similar nature? Excellent Good Fair Poor Undecided

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12) Do you currently use this product? Yes No 13) Based on this advertisement, how likely would you be to purchase this product in the future? Very Likely Somewhat Likely Undecided Not Very Likely Not at all Likely 14) If deciding between this product and a competing product, how much would this ad influence you to buy this product? Very Much Somewhat Undecided Very Little Not at All 15) What, if anything, did you find appealing about this advertisement?

16) What, if anything, did you dislike about this advertisement?

17) Which of the following would you use to describe this advertisement? Please check all that apply. Appealing Honest Distasteful Credible Convincing 65

Creative Distasteful Attractive Believable Memorable Not Credible Touching Professional Silly Please tell us a little about yourself.

18) Are you male or female? Male Female 19) What is your age? 20) What is your marital status? A) MARRIED B) UNMARRIED

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BIBLIOGRAPHY
BOOKS
Marketing Management Marketing Research Phillip Kotler Toll & Hawkins

MAGAZINE
Business Today Advertising & Management

NEWSPAPERS
Economic Times Hindustan Times Financial express

WEBSITE www.google.com www.rcom.co.in

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