Professional Documents
Culture Documents
Reliance Communication
Summer Project 2
A SUMMER TRAINING REPORT A SUMMER TRAINING REPORT A SUMMER TRAINING REPORT A SUM
MER TRAINING REPORT
ON
IN ININ IN
RELIANCE COMMUNICATI RELIANCE COMMUNICATI RELIANCE COMMUNICATI RELIANCE COMMUNIC
ATION LTD ON LTD ON LTD ON LTD
(7th
July,2008-6th
November, 2008)
SUBMITTED IN THE PARTIAL FULFILLMENT O SUBMITTED IN THE PARTIAL FULFILLMENT O SU
BMITTED IN THE PARTIAL FULFILLMENT O SUBMITTED IN THE PARTIAL FULFILLMENT OF F
F F
REQUIREMENT OF REQUIREMENT OF REQUIREMENT OF REQUIREMENT OF
POST GRADUATE PROGRAM IN RETAIL MANAGEMENT POST GRADUATE PROGRAM IN RETAI
L MANAGEMENT POST GRADUATE PROGRAM IN RETAIL MANAGEMENT POST GRADUATE PROGRAM
IN RETAIL MANAGEMENT
SUBMITTED BY
Pradipto Dey
10
Session: 2007 - 09
PLACE: - KOLKATA
DATE: - 30/10/2008
Signature of the Guide:
Name and Official Address of the Guide:
Designation and Experience: 11
Students’ Declaration
I, Mr. /Ms PRADIPTO DEY. hereby declare that the Project Work titled
Consumer Buying Behaviour with a focus on perception of internet data card is
the original work done by me and submitted to the NSHM, Kolkata in partial
fulfillment of requirements for the award of Post Graduate in Retail Management
(Area of specialisation) is a record of original work done by me under the
supervision of Dr/Mr. Sri. OZAIR QAMAR of RELIANCE COMMUNICATION
LTD. (Orgn. of the guide)
Date: 30/10/2008
Signature of th
e Student
12
ACKNOWLEDGEMENT
First of all I would like to thank the Management at Reliance Communicat
ion
Ltd. for giving me the opportunity to do my four-month project training in their
esteemed organization. I am highly obliged to Mr. RAHUL NAGARIA (HR,
Reliance Web Stores Limited) for granting me to undertake my training
at
Reliance World, Place Kolkata
I would like to express my gratitude to Mr. OZAIR QAMAR (Area Sales
Manager), who has been provided me with guidance, inspiration, perspective
and stimulating discussion, throughout the writing of this report. His con
stant
review and excellent suggestions throughout the project are highly
commendable.
A study like this can not be completed without help from other persons and
therefore I
would like to express my gratitude to Mr. G.M SAHA, (Ex. Dean of IN
DIAN
STATISTICAL INSTITUTE, KOLKATA ) to provide me crucial guidance in the
analytical part of this Project.
My heartfelt thanks go to all the executives who helped me gain know
ledge
about the actual working and the processes involved in various departments.
Finally, we would like to thank our friends and family member for givin
g us
constant support and encouragement.
13
4. EXECUTIVE SUMMERY
16
6. History of Reliance Communication
6.1. Foundation of Reliance Communication
Dhirubhai Ambani (1932-2002) started the Reliance Commercial Corporation in a
350 Sq. Ft. room with a telephone, one table and three chairs. The
primary
business of Reliance Commercial Corporation was to import polyester yarn and
export spices. He started his first textile mill at Naroda, in Ahmedabad
in the
year 1966 (The Origin Of 2007). After success in the textile industry
Reliance
slowly ventured into petroleum, petrochemicals, energy, finance, engineer
ing
and telecommunication sectors. Reliance was the first Indian company to
be
listed in the Fortune Global 500 list in 2003. RIL emerged featured in
the 2007
Fortune Global 500 list of the world s largest corporations at rank 269 (500 200
7).
Dhirubhai Ambani charted out the mission for Reliance Infocomm in late 199
9.
He saw that information technology had the capacity to accelerate the growth of
Indian economy leaving behind its backwardness and underdevelopment. From
1999 to 2002 Reliance Infocomm built the fiber backbone for India — 60,
000
kilometers of fiber optic spreading across the entire country. Reliance Infocomm
was started on December 28, 2002 (Communications, Reliance Communications
2006).
17
After the death of Dirubhai Ambani, there was a rift between his sons, Mukesh
and Anil Ambani. Finally the company was split between the two brothers. Anil
Ambani acquired Reliance Infocomm, which is now known as Reliance
Communications. Reliance Communication is now a part of Anil Dhirubhai
Ambani Group (ADAG).
Reliance Communications is the flagship company of the Anil Dhirubhai
Ambani Group of companies. Launched as Reliance India Mobile in December
2002, it started its commercial operations in May 2003 with one milli
on
customers in 92 cities. This organization was the result of the dream of Dhirubh
ai
Ambani to – “Make the tools of information and communication available to
people at an affordable cost [and] they will overcome the handicaps of illiterac
y
and lack of mobility”.
Currently, Reliance Communication spans the entire telecommunication services
covering mobile and fixed telephony. Apart from plain vanilla voice services,
it
provides broadband, national and international long distance services and dat
a
services along with an exhaustive range of value-added services and
applications. Further, the company sells communications and digital
entertainment products and services through its chain of Reliance Web Wor
ld
retail outlets. Today, Reliance is a service provider of both CDMA an
d GSM
technologies.
18
19
7. An analysis of Reliance Communication
Michael E. Porter studied a number of businesses and introduced a str
ucture
enumerating three strategies: low-cost leadership, differentiation and focus (Da
ft
2007). According to Porter an organization either adopts low-cost or
differentiation strategy to compete and position them in the market. But it can
be
seen Reliance have successfully adopted Porter’s both strategies.
utilize their network and other resources optimally. Apart from the basic mobile
services, Reliance Infocomm currently offers landline, broadband Internet, lease
d
line, VPN (Virtual Private Network), IPLC (International Private Leased Circuit)
,
Centrex and IDC (Internet Data Centre) services.
Thus Reliance Infocomm was able to use innovation to reduce the cost of their
services. Differentiation and low-cost strategies went hand in hand for Reliance
Infocomm.
Data from various inputs such as billing, CRM, SAP R/3 was sent to a third party
server, where the data was filtered and organized. It was stored in
a data
repository. SAP R/3 is an enterprise resource planning software. Some of the dat
a
went directly to the SAP NetWeaver, business intelligence software. SAP
NetWeaver provides business analytic applications to the management.
Even though Reliance Infocomm has such a reliable system, the users stil
l face
many customer service problems. A person may have to wait up to twen
ty
minutes before his call is answered by their customer service represen
tative.
There is lot of billing issues with reliance Infocomm. They are trying to overco
me 26
all these issues gradually by continuously updating their information
technology.
As compared to the industry average Reliance Communications has a very high net
profit
margin (NPM). It has an NPM of 70.8% against and industry average of
about 19%.
Although the total earnings reported by Reliance form only a miniscule
part of total
industry. Reliance Communications has the highest EBITDA margin expands
from
39.5% to 43.0% reported for the year ended March 31, 2008. The total
income
reported were Rs. 19,068 crores while the industry total was Rs. 123436.52 crore
s,
with a change of 25%. Therefore Reliance has considerable catching up to do. In
FY08, Reliance’s sales jumped by 49% compared with FY07 and are expected to
grow strongly in the coming years. Same trend can be witnessed in PAT, with a
rise of 30% in FY08 compared with FY07. Sales in AMJ08 are expected to jump by
13% to Rs36, 453.94m from Rs32, 289.30m in AMJ07. In the coming quar
ters,
Reliance is expected to add subscribers at the rate of more than 4m c
ustomers
every quarter. Since Reliance is present in both CDMA and GSM technology, it is
fast catching up with the leading company and is second largest company afte
r
the market leader in terms of subscriber base. Only company to have nationwide
GSM & CDMA service in India
27
7.8. Ethics & Culture
Reliance defines what is right and what is wrong, and then proposes doing t
he
right thing. Reliance Infocomm believes that any business conduct can be ethical
only when it rests on the nine core values of honesty, integrity, respect, fairn
ess,
purposefulness, trust, responsibility, citizenship and caring (Communicati
ons,
Code Of Conduct 2006).
28
8. Telecom Sector-An Outlook
in March 2008
8.1.1. Bharti Airtel
Bharti Airtel is India’s leading provider of telecommunication service. A
irtel
Data Card is the superior PC Data Card solution which delivers wireless internet
29
capabilities to laptops and notebooks, by providing EDGE and GPRS
technologies in a single PC Card package. On an EDGE network, Airtel Da
ta
Card enables connection to the Internet using EGPRS. In areas where E
DGE
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 show
n
below:
Airtel Data Card
Name of Bill
Plan Datacard49 Datacard350
Datacard
599 New
Datacard
999 New
Monthly Fixed Chaeges
Monthly
Charges 49 350 599 999
Data Charges (Rs/Pulse) (All India)
Rate Per Pulse 0.1 5 3 0
Pulse 10 KB 1MB 1MB 1MB
Data Usage
Discount Nil 500 Mb 1 GB
Unlimitted
Free
Default Voice Charge
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
Free
SMS/Month Nil Nil
100
Local
SMS
100 Local
SMS
30
8.1.2. Tata- Indicom
Tata-Indicom currently at leading position in wireless data card market in India
.
Tata Teleservices Tata-Indicom data card sales have exceeded the 100,0
00
subscribers’ milestone. Using CDMA 1x technology, Tata-Indicom data cards
offer wireless internet access. The recently launched Plug 2 Surf Whiz fits in
to 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 Fixed Charge Free Usage Additional Usage
Time Based
Budget 150 Lowest rental Rs.150/month 300min 50p/min
Value 325 Free 1hr/day Rs 325/month
1800 Min
(30 Hrs)
8AM -
12AM:50p/min
12AM -8AM
:25p/min
Data Based
ME
Unlimitted
Unlimitted
usage Rs.1099/month Unlimitted N/A
ME
Economy Alweys On Rs. 500/month 512MB Rs. 2/MB
ME Jumbo For Heavy Rs. 650/month 1GB Rs. 2/MB
ME Max Users Rs. 900/month 2GB Rs. 2/MB
ME 6 Advanced
Rs.
3600/6month 1GB Rs. 2/MB
ME 12 Rental
Rs.
6700/annum 1GB Rs. 2/MB
Voice Tariff
Rs. /min To TATA To Other
Local 50 Paise Rs. 1
STD Rs. 1.69 Rs. 2.65
31
8.1.3. 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 Int
ernet
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 ba
sed
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 ser
vice is around
550Rs/month for speeds upto 2.4Mbps in most cities in India. Though there a
re reports
that the pricing differs based on cities and starts at 400Rs/month to 550Rs/mont
h.
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 32
8.1.4. 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 its wireless internet device like
Vodafone Mobile Connect Globe Trotter EDGE data card
Vodafone Mobile Connect USB Modem
Vodafone Mobile Connect USB Stick
Globe Trotter EDGE is the superior PC Data Card solution delivering n
ear
broadband wireless capability to laptops and notebooks by providing EDGE and
GPRS technologies in a single PC Card package
The tariff charges of Vodafone’s data card are shown below:
Monthly rental (Rs) 499
699
Free data 500MB 1GB
Usage charges 5P/10KB 5P/10KB
33
9. Reliance Netconnect
9.1. Introduction
Reliance Communication erstwhile Reliance Infocomm always remained
technological, market leader in CDMA mobile business. Its high brand
awareness, market acceptance as a technological, economical leader in va
rious
segment of mobile business and high brand equity were compelling reason
to
penetrate and develop entire value chain of the both mobile and broad
band
based business.
9.2. Reliance Communication’ products in Reliance Netconnect
Department
Reliance has range of products for both office and individual internet
usage.
Reliance Data card is the superior Data card solution delivering near Broadband
wireless capability to laptop & desktop .Reliance Data card enables connection t
o
the internet at data speed up to a maximum of 144 kbps. Reliance is currently th
e
best wireless connection in India which can be used for both laptops
and
desktops. There are two types of Data card are presented by Reliance.
34
1) PCMCIA Card (Personal Computer Memory Card International
Association)
Mainly for Laptop.
Which Laptop is supporting PCMCIA Slot.
Data Card company is ZTE.
2) USB Data Card (Universal Serial Bus)
Supporting USB Slot.
For Laptop & Desktop both.
Direct USB connector – no need for adaptor or cable. (ZTE)
Slim, sleek and stylish
Plug and Play – No need to install drivers – just connect and surf using the
Windows dialer.
Retraceable antenna – better signal strength in low RF areas.
9.2.1. Value Based Plan
Plan Freedom Freedom Plus Platinum
Monthly Rental (Rs) 650 900 1500
Monthly Rental for
Voice Service
NIL for NJ 149 Data, for
other plans as
applicable
NIL for NJ 149 Data,
for other plans as
applicable
NIL for NJ 149 Data, for
other plans as
applicable
Total Free Data Usage
Hrs N.A N.A N.A
Free Usage Peak Hrs N.A N.A N.A
Free Usage Off Peak Hrs N.A N.A N.A
Free Data Usage in GB 1 GB 1.5 GB Unlitted
Additional Data Usage
Rate Rs.2/Mb Rs.2/Mb N.A 35
9.2.2. Advance Rental Plan
Plan 12 Months ARP 24 Months ARP Zero Rental Plans
Monthly Rental (Rs) 0* 0* 0
Monthly Rental for Voice Service
NIL for NJ 149
Data, for other
plans as applicable
NIL for NJ 149 Data,
for other plans as
applicable
Rs. 174 for NJ 149
Data, for other plans
as applicable
Total Free Data Usage Hrs N.A 60 Hrs. N.A
Free Usage Peak Hrs N.A 20 Hrs N.A
Free Usage Off Peak Hrs N.A 40 Hrs N.A
Free Data Usage in GB 1 GB N.A N.A
Additional Data Usage Rate Rs.2/Mb Rs.0.5/min
Peak Hrs
Rs.0.60/min off Peak
Rs. O.30/min
Free SMS Per Month
100Local &
National 400 Local N.A
9.2.3. Time based plan
Plan Swift 03 Swift 40
Freedom @
Night
Monthly Rental
(Rs) 300 400 400
Monthly Rental for
Voice Service
NIL for NJ
149 Data,
for other
plans as
applicable
NIL for NJ
149 Data, for
other plans
as
applicable
NIL for NJ
149 Data,
for other
plans as
applicable
Total Free Data
Usage Hrs 45 Hrs. 60 Hrs N.A
Free Usage Peak
Hrs 15 Hrs 20 Hrs N.A
Free Usage Off
Peak Hrs 30 Hrs 40 Hrs Unlimited
Free Data Usage in
GB N.A N.A N.A
Free SMS Per Month 100Local & National 100Local & National 100Local & Nationa
l 36
Additional Data
Usage Rate Rs.0.5/min Rs.0.5/min Rs.0.5/min
Free SMS Per
Month 300 Local 400 Local N.A
9.2.4. Prepaid Options
Product Name
5 hours Internet
pack
10 hours
Internet pack
25 hours
Internet pack
Unlimited
Internet pack
Prepaid Data RCV including
Taxes 111 202 404 1501
Core Validity Days 0 0 30 30
Netconnect Validity Days 30 30 30 30
Free Local SMS 50 100 300 300
Netconnect minutes if entire
usage is in Peak hours 300 600 1500 Unlimited
Netconnect minutes if entire
usage is in off Peak hours 600 1200 3000 Unlimited
9.3. Evaluation Criteria & Parameter of Competitors
Reliance Airtel TATA Indicom Vodafone
Used for Laptop & Desktop Laptop & Des
ktop Laptop & Desktop
Laptop &
Desktop
Technologies CDMA EDGE EDGE
Interface USB/PCMCIA USB/PCMCIA USB/PCMCIA USB/PCMCIA
Price 2820 3350 2999 5999
Speed Up to 144KBps 100-115KBps Up to 153.6 KBps
Up to 144
KBps
Voice Call Yes yes Yes N/A
SMS Yes yes Yes yes
National Data Roaming Yes yes N/A N/A
Tariff
No of Tariff 9 4 8 2
500 MB Free N/A Rs, 350 N/A Rs. 499
512 MB Free N/A N/A Rs.500 N/A
1 GB Free Rs.650 Rs. 599 Rs.650 Rs. 699
1.5 GB Free Rs. 900 N/A N/A N/A
2 GB N/A N/A Rs. 900 N/A 37
Unlimited Rs. 1500 Rs. 999 Rs. 1099 N/A
5 Hrs Free N/A N/A Rs. 150 N/A
30 Hrs Free Rs. 300 N/A Rs. 325 N/A
40 Hrs Free Rs. 400 N/A N/A N/A
Unlimited (night) Rs. 400 N/A N/A N/A
Minimum Rate Rs. 300 Rs. 49 Rs. 150 Rs. 499
Maximum Rate Rs. 1500 Rs. 999 Rs.1099 Rs. 699
Additional Data Usage (size) Rs. 2/MB
For Rs. 49 - .10/10 KB For
Rs. 350 - Rs.5/MB For
Rs.599 - 3/MB Rs. 2/MB
Additional Data Usage (Time) Rs. 0.5/min N/A
8AM - 12AM:50p/min
12AM -8AM :25p/min
Free SMS per Month
For Rs. 300 - 300 For
Rs. 400 - 400 For Size
- 100 Local &
National
For Rs. 599 - 100 Local For
999 - 100 local N/A
Voice Call for company to company (local) Rs. 1.79 Rs. 1.99/min Rs. .50
Voice Call for company to Other (Local) Rs. 1.79 Rs. 1.99/min Rs. 1
Voice Call for company to company (STD) Rs. 2 Rs. 2.99/min Rs.1.69/min
Voice Call for company to Other (STD) Rs. 2 Rs. 2.99/min Rs. 2.65/min
Features:
Uninterrupted high-speed wireless Internet connectivity
Better surfing speeds, with download speeds up to 144 kbps
High download speed of heavy email attachments
One-time installation of the dial-up software without the need to change
the dial-up configuration
Hassle-free connection
o Connect instantly (No line busy / waiting tone)
o Easy to remember username / password (your phone / card
number).
39
Brand Development
Index
9.5. Packaging
With data card as a utility product in India, the packaging, Point of purchase p
lat
a minor role in consumers’ mind while deciding which product to buy.
The Reliance PCMCIA card has been designed
and packaged with a old Reliance Infocomm’s
green and blue theme in mind .The USB modem
comparatively looks much futuristic. It comes in
High Low
High
Low
Low
Category
Development
Index 40
black in colour, overall new look of the new USB modem is attractive enough to
grab the attention of customer at Point of Purchase.
9.6. Price
Reliance Netconnect has dropped their prices on new data
cards purchased because their competitor [Tata] has offered
free 2 months internet services. According to the new pricing
Reliance USB Modems would now be available from 2299 Rs.
rather than the old pricing of 2850Rs. This price drop is for a
limited time also comes with a 2 months unlimited internet usage for free. T
he
best part of Reliance Netconnect is that they don’t charge which on roaming and
also have an excellent network services
Pricing of USB Modems:
USB Modem for Laptops & Desktops: 2299 Rs.
PCMCIA Card for Laptops: 2620 Rs.
9.7. Promotion
Data card is a specialty product .That is why
promotional activities are mainly focused around
in store promotional activity as well as other 41
medium like print media, hoarding and posters. Reliance data card doesn’t have
any brand ambassador as of yet. But, for the data card not been muc
h of
advertisements.
9.8. Bundling
Bundling has always been the norm for reliance data
card. This is mostly due to the fact that consumers
have to purchase tariff plan with all data cards. There
is always at least one trade promotion across both data cards through
out the
year. Currently it’s giving free data card for HDFC bank card holder.
42
10. Market Research
10.1. OVERVIEW OF RESEARCH
10.1.1. Problem or opportunity?
Study and analyses of pre, during and post sales perception of consum
er
towards Internet Data cards especially Reliance Internet Data cards.
To understand the market segmentation in the light of Indian Data card market
Gauge brand recall for various data brands, specifically Reliance Internet
Data
cards.
Map the Data card market and competitive positioning within it.
To understand the buying intention of and analyze the effect of non-a
ttribute
factors.
To understand the brand loyalty of customers towards Data cards.
Identify the parameters that play the most important role in a consumer’s choice
of buying Data cards using Factor and Cluster analysis.
43
10.1.2. Background of the study
The Internet has grown tremendously during the past years. It radically changes
the way people live, work and consume. It represents a tremendous opportunity
as well as threats.
Internet usage in India continues to grow at a slow but steady pace,
both in
breadth and depth, with the overall internet-using population in urban
India
reaching 30.32 million - a growth of 28% from April 2006 to April 20
07. The
penetration of the internet among urban Indians stands at 9% now, assuming the
total urban population at 336 million (Juxt Consultant 2006)
Unlike the 70s and 80s when business-related travel was not seen much,
the
90s, particularly the dawn of the twenty-first century, has witnessed int
ensive
business travels, and this is gaining momentum with time. India too is
on the
move and wants to stay connected anytime, anywhere-whether on a train or bus,
in a hotel or conference hall, within India or abroad. Meeting this
need of
business travelers are data cards and USB modems that have become the
preferred solution, even before wireless mobile broadband is introduced in
the
country. At present, there are 10 mn data cards, USB modems, and Inter
net-
enabled mobile phones in the Indian market. 44
With India on the move, the data card market is flourishing even as
low,
inconsistent speed remains an issue. In this already competitive market
, it
becomes essential for Internet data card players to understand the dif
ferent
factors that affect people using the Internet data card as a new wireless device
for
internet connection There are many benefits that attract people to choose intern
et
data card for access to the internet as convenience, time saving,
wireless
connectivity and possibly affordable , however, many people are often hold back
as fear of low speed, high usage charges and using issues in relation to int
ernet
data card usage.
10.2. An overview of internet and wireless connectivity
10.2.1. Definition of internet
The Internet is a worldwide, publicly accessible series of interconnect
ed
computer networks that transmit data by packet switching using the standard
Internet Protocol (IP). It is a "network of networks" that consists of mil
lions of
smaller domestic, academic, business, and government networks, which
together carry various information and services, such as electronic mail, onlin
e
chat, file transfer, and the interlinked web pages and other resources
of the
World Wide Web (WWW). 45
60
11.9.1. Convenience:
From our questionnaire survey and focus group discussion we have come
to
know that when a customer thinks to purchase a data card for accessing internet
they mostly its convenient to access internet at any where at any time. Especial
ly
those who have to extensively traveling its quite convenient for them
to get
connected with World Wide Web!
11.9.2. Time saving:
Some time data card also proves time saving from the customers especially
for
business executives who have to travel extensively due to their job purpo
se. If
they are using a data card for accessing internet they don’t have to find
out a
cyber café at an unknown place.
11.9.3. Economical:
From our secondary research we have found that for younger group of
consumers (age group of 18-28) who generally spend a lot of time for
downloading different kind of materials like music, picture, data, due
to
availability of some attractive tariff plans offered by the different
players
(Reliance’s Freedom plus) along with their respective data cards, its seems
a
must have utility device for all young laptop users. 61
11.10. Perceived risk of Internet data card
Perceived risk can be defined as the uncertainty that consumers face when they
cannot foresee the consequences of their purchase decision. Customer
perception of risk varies depending on individuals, situation and product. T
he
degree of risk that consumers perceive and their own tolerance for risk
taking,
are factors that influence their purchase strategy (Schiffman and Kanuk,
2000).
Individuals tend to reduce perceived risk to some acceptable level in any g
iven
purchase situation.
11.10.1. Risks of internet connection speed:
Internet connection speed refers to the data transfer rate from the I
nternet to
your computer. Basically that means the amount of time it takes your computer
to download a given amount of data. Internet connection speeds are us
ually
measured in Kbps (kilobits per second, or thousands of bits per second) or KBps
(kilobytes per second).
According to our study, consumers already have a predisposition that data card
do not provide good internet connection speed, so during products evaluations
and purchasing activities they mostly think about product attributes e.g. intern
et
connection speed, signal strength. Therefore here implication for management is
during product evaluation; purchase activities, retailers must take some
62
necessary measures to reduce the uncertainty in the customer mind by
aggressive promotional strategies, especially focusing on innovating below the
line (BTL) marketing activities, giving excellent product demonstrations
during purchase and most importantly reducing the cognitive dissonance
during post purchase behaviour by giving enough assurance about product
qualities, warranty as well as excellent after sale service.
68
11.15.4. Implementation
Data Collection - Pha e 1:
FGD
The FGD were aimed at helping u to
Define the target egment better
Identify the important attribute that add in the target cu tomer’ internet
data card u age experience
The FGD que tionnaire i given in ection 14.5
A preliminary definition of main two egment i :
Experimenter and Adopter (EA):
Thi category of con umer compri e of both male and female from th
e age
group 18-24 year . The e are the people who are willing to try new brand . The e
people are internet u er and willing to pay for anything if net peed i concer
n. 69
The e people generally pend a lot of time to acce internet. They tend to pref
er
urf any time of the day.
72
11.6.7.3. Factor Analy i
A factor analy i wa carried out to obtain the group of attribute which can b
e
grouped together. Hence 3 factor were obtained a follow –
Factor 1 Product attribute (Net peed, Signal trength and Ea e of U e)
Factor 2 Price Sen itivity (Tariff plan And Offer /Di count )
Factor 3 Point of Purcha e (Availability in Store )
11.6.7.4. Perceptual Map
Attribute core were averaged under each factor for each of the inter
net data
card. Then graph were plotted (Refer ection 14.15) for the perceptua
l map
along the dimen ion a hown
Ob ervation :
In Kolkata urveyed ample perceive that Reliance primarily target
con umer which are more focu ed on the product attribute like net
peed, ignal trength, ea e of u e etc wherea the perception of price
en itive con umer toward wa found to be of an over priced brand.
73
For price en itive cu tomer’ product like Airtel, Vodafone’ data card i
le ati fying than Reliance.
The urveyed ample con idered Reliance to have the be t tariff plan
among all the brand . Thi feature highlight the fact that offer and
promotion i an important factor for the internet data card market and
Reliance ha been outperforming other competitor on thi particular
factor.
High ati faction in the availability in tore further how the robu t
di tribution y tem that ha put into place to cater to diver ified market .
Although not much differentiation can be introduced in the product per e
(low ati faction core for all brand ), till Reliance i found to be een a
a brand which bring out product with new feature like free data card
for HDFC credit card holder, bundling with other product like laptop etc.
85
13.2. Po itioning
Market re earch
Market re earch re ult have been analyzed in ection 12 of the repor
t. The
following conclu ion from the urvey help u in identifying the po itioni
ng of
the Upgraded ver ion of wirele data card:
Target market: - The target market ha been identified a the cu tomer who are
concerned about the attribute of the internet data card but are not
willing to
hift from the current price band to a higher price band.
Competitor Brand : - The competitor brand have been di cu ed in Section 8
The upgraded data card will be competing with brand like Tata-Indicom and
Vodafone.
Choice Criteria: - A per our finding (Section 11.15.7.3.) the 3 fac
tor on
grouping attribute po t factor analy i that contribute to the data card
Purcha e deci ion are:
Factor 1 Product attribute (Net peed, Signal trength, Ea e of U e)
Factor 2 Price Sen itivity (Price, Tariff plan And Offer /Di count ) 86
Factor 3 Point of Purcha e (Availability in Store and Package De ign)
Cu tomer Evaluation: - Perceptual map in the ection how how the cu tomer
evaluate Reliance with re pect to competitive brand .
Perceptual map
, Reliance, 3.4
, Vodafone,
2.9
, BSNL, 2.5
, Tata-
Indicom, 3.6
, Airtel, 2.8
0
0.5
1
1.5
2
2.5
3
3.5
4
0 1 2 3 4 5 6
Attribute
Price Sen itivity
aggre ive pricing and innovative product and ervice would help in gaining a
larger hare of the market. Given a competitive po ition and focu on cu tomer
95
delight, Reliance may be po itioned to attract ub criber pre ently on
other
network , a and when number portability get introduced in the market.
Threat
Regulatory deci ion and change : On the regulatory front, reduction in the entr
y
fee and the annual licen e fee for National Long Di tance and International Long
Di tance (ILD), combined with the impending implementation of Carrier Acce
Code (CAC) would lead to greater competition in the Long Di tance egmen
t.
The implementation of Carrier Acce Code would make it ea ier for cu tomer
to choo e their long di tance carrier, regardle of the acce provider. A focu
on
offering value-for-money ervice to con umer would tand to gain from
the
introduction of CAC.
14.3. Product portfolio
Reliance communication ha the following con umer product line
ü Mobile
ü Wirele Phone
ü Wirele Terminal
ü Blackberry
ü Broadnet
ü Roaming
ü Reliance Landline
ü Reliance Netconnect
ü Reliance Mobile
ü Reliance India Call
ü Reliance Pa port
96
Reliance communication ha the following enterpri e product line
ü BlackBerry
ü Office Centrex
ü One Office Due
ü Audio conference
ü Reliance PCO
ü Toll-Free
ü ITFS
ü Broadband
ü Bu ine Broadband Internet
ü Lea ed Line>Virtual private network>IPLC
ü Video Conferencing
ü Internet Data Centre[IDC]
Reliance
Tata-Indicom
Vodafone
Airtel
BSNL
99
8. Which brand of data card you are aware of (Unaided recall)
Reliance
Tata-Indicom
Vodafone
Airtel
BSNL
9. Which of the following brand do you u e per onally? (Tick only one)
Reliance
Tata-Indicom
Vodafone
Airtel
BSNL
10. Plea e rate the following ource of information according to the level of
importance of each ource (1 – Lea t Important; 5 – Mo t Important)
Friend ___
Family ___
Retailer ___
Adverti ement ___
Packaging ___
Magazine or new paper ___
Cyber café ___
Any Other ___ 100
11. How ati fied are you with Reliance Data card? (If u ed)
Highly Sati fied
Moderately Sati fied
Neither ati fied nor di ati fied
Moderately Di ati fied
Highly di ati fied
13. If your FIRST preference i not available then what do you do?
Purcha e ome other brand from the ame hop/ tore.
14. If the price of your mo t preferred data card a well a tariff charge incr
ea e
what would you do?
Shift to another option or different brand of data card
15. If you choo e to hift then which Brand will you prefer?
Tata-Indicom
Vodafone
Reliance
Airtel 101
BSNL
16. Plea e rate the factor given below on cale of 1 – 5 ba ed on the
importance they hold for you in purcha e deci ion of Data card.
(1 lea t important to 5 mo t important)
19) Do you know the difference in pricing of Reliance data card plan ?
FG 1: The group wa n’t urpri ed with the price catalogue we provided
FG 2: The group wa urpri ed
20) Would you like to buy Reliance data card even if the price and tariff wa
further rai ed?
FG 1: Depend on the budget we have
FG 2: Ye
21) What do you think of Reliance data card?
FG 1: Not ure 105
FG 2: Better compared to other
The two group together came up with 7 attribute of data card after a few minut
e .
They had 3 attribute that overlapped a hown.
FG 1: Price
Net peed
Availability in tore
Offer /Tariff plan
Wire le connectivity
FG 2: Ea e of U e
Availability in tore
Quick connectivity
Offer /Tariff plan
La ting
Net Speed
28%
42%
14%
11% 5%
TATA INDICOM
RELIANCE
AIRTEL
VODAFONE
BSNL
Preferrence of Internet Connection
53%
13%
23%
11%
Broadband
pcmcia card
u b modam
General net connection 108
14.11. Brand Sati faction of Reliance
Sati faction Level-Reliance
6%
41%
28%
14%
11%
Highly ati f ied
Moderately Sati f ied
Neither Sati f ied nor
Di ati f iefd
Moderately Di atif ied
Highly Di ti f ied
14.12. Brand Loyalty
Brand Loyalty in Internet Data Market
If your FIRST preference i not available then what do you do?
Option 1 Purcha e ome other brand from the ame hop/ tore
Option 2 Purcha e the ame brand from ome other tore
Brand Loyalty
25%
75%
Other Brand
Same Brand
Price Sen itivity in Internet data card Market
If the price of your mo t preferred brand increa e what would you do? (Q 14)
109
Option 1 Shift to another brand
Option 2 Still buy the ame brand
Where,
Ab = Attitude toward the object (brand)
Wi = belief about the brand’ po e ion of the attribute
Xib = evaluation of the attribute a being good or bad
n = there are a limited number (n) of attribute which the per on will con ider
Price Sen itivity
87%
13%
Stick to current brand
Other brand 110
Preferred Brand on ba i of individual Attitude Score
23%
18%
20%
22%
17%
Tata-Indicom
BSNL
Airtel
Reliance
Vodafone
14.14. Average attitude perception core of each brand
Initial Eigen value Extraction Sum Loading
Total % of
Variance
Cumulative% 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
63.098 111
Average Perception Score of Each Brand
0
5
10
15
20
25
30
35
Serie 1
Serie 1 30.348 22.938 25.733 28.235 22.334
Tata-Indicom BSNL Airtel Reliance Vodafone
14.15. Factor Analy i
Component
1 2 3
Price
Ea y handling
Net peed
Signal trength
Availability in tore
Tariff plan
Offer /Di count
-.328
-1.20
.458
.336
.776
.451
.169
.634
.028
.327
.122
-.096
-.078
-.112
-.067
-.076
.326
.398
-.064
-.043
.418
112
Score plot
0
0.5
1
1.5
2
2.5
3
1 2 3 4 5 6 7
Component number
Eigenvalue
Serie 1
113
Number of Ca e in each Clu ter
Clu ter 1 42.000
2 38.000
Valid 89.000
Mi ing .000
Three Clu ter Analy i
Final Clu ter Center
Clu ter
1 2 3
Attribute 2.8 3.3 2.9
Price Sen itive 2.5 3.0 2.1
Point of Purcha e 3.4 3 2.8
Additional Factor 3.1 3.4 2.9
Number of Ca e in each Clu ter
Clu ter 1 38.000
2 23.000
3 19.000 114
Valid 89.000
Mi ing .000
115
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• Berman, B Evan , JR Retail Management, A Strategic Approach, McMillan
Publication 2001.
• Levy & Weitz, Tata McGraw-Hill Publi hing Company Limited, 2006.
• Philip Kotler, K. K. (2006) Marketing Management, New Jer ey, Pear on
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We tern, 2007.
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http://www.rcom.co.in/Communication /Aboutu /aboutu _home.html.
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http://www.rcom.co.in/webapp/Communication /rcom/Aboutu /aboutu
_mile tone .j p
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http://www.rcom.co.in/webapp/Communication /rcom/index.j p
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http://www.andhranew .net/Bu ine /2007/July/16-Reliance-Communication-
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http://www.rcom.co.in/Communication /Aboutu /pdf/Code_of_Conduct.pdf.
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_bu ine .j p
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