You are on page 1of 64

[2008]

Reliance Communication
Summer Project 2
A SUMMER TRAINING REPORT A SUMMER TRAINING REPORT A SUMMER TRAINING REPORT A SUM
MER TRAINING REPORT

ON

CONSUME CONSUME CONSUME CONSUMER R R R BUYING BEHAVIOUR WIT BUYING BEHAVIOUR W


IT BUYING BEHAVIOUR WIT BUYING BEHAVIOUR WITH A H A H A H A
FOCUS ON PERCEPTION FOCUS ON PERCEPTION FOCUS ON PERCEPTION FOCUS ON PERCEPTI
ON TOWARDS TOWARDS TOWARDS TOWARDS
INTERNET DATA CARD INTERNET DATA CARD INTERNET DATA CARD INTERNET DATA CARD

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

1. CERTIFICATE OF THE GUIDE 10


2. STUDENT’ DECLARATION 11
3. ACKNOWLADGEMENT 12
4. EXECUTIVE SUMMERY 13
5. INTRODUCTION OF PROJECT 15
6. HISTORY OF RELIANCE COMMUNICATION 16
6.1. Foundation of Reliance Communication 17
6.2. The Vision 18
6.3. The Mission 18

7. AN ANALYSIS OF RELIANCE COMMUNICATION 19


7.1. Low-Cost Leadership Strategy 20
7.2. Differentiation Strategy 20
7.3. Organization Structure 21
7.4. External Environment 22
7.5. Global Expansion 23
7.6. Information as a Weapon 24 4
7.7. Financial Performance and Analysis 26
7.8. Ethics & Culture 27

8. TELECOM SECTOR-AN OUTLOOK 28


8.1. Industry Analysis 28
8.2. Bharti Airtel 28
8.3. Tata- Indicom 30
8.4. Bharat Sanchar Nigam Limited (BSNL) 31
8.5. Vodafone -Essar (Erstwhile Hutchison Group) 32

9. RELIANCE NETCONNECT DIVISION 33


9.1. Introduction 33

9.2. RCOM’ products in Reliance Netconnect Department 33


9.2.1. Value Based Plan 34
9.2.2. Advance Rental Plan 35
9.2.3. Time based plan 35
9.2.4. Prepaid Options 36
9.3. Evaluation criteria & parameter of competitors 36
9.4. Reliance Data Card - an insight 37
9.5. Product 38
9.6. Packaging 39 5
9.7. Price 40
9.8. Promotion 41
9.9. Bundling 41
10. MARKET RESEARCH 42
10.1. Overview of Research 42
10.2. Introduction 43
10.2.1. Problem or Opportunity 43
10.2.2. Background of the study 43
10.3. An overview of internet and wireless connectivity 44
10.3.1. Definition of internet 44
10.3.2. Common uses of the Internet 45
10.3.3. Driving growth of internet data card 46
10.3.4. The Deterrents 47
11. CONSUMER BEHAVIOUR THEORIES 48

11.1. Consumer perception and consumer behaviour 48


11.2. Consumer decision process 49
11.2.1. Predispositions (Before Purchase) 49
11.2.2. Product Need 50
11.2.3. External Search 50
11.2.4. Evaluation of Alternatives 51 6
11.2.5. Purchase Activity 51
11.2.6. Post Purchase Behaviour 52
11.2.7. Predispositions (After Purchase and Use) 52
11.3. CONSUMER PERCEPTION 53
11.3.1. Introduction 53
11.3.2. Factors in perception 53
11.4. Consumer behaviour towards internet data card 55
11.4.1. Problem recognition 56

11.5. Information Search 56


11.6. Product Evaluation 57
11.7. Purchase Activity 58
11.8. Post Purchase Activities 58
11.9. Perceived benefits of internet data card 59
11.9.1. Convenience 60
11.9.2. Time saving 60
11.9.3. Economical 60
11.10. Perceived risk of internet data card 61
11.10.1. Risk of internet connection speed 61
11.11. Research objective 62

11.12. Research question 62


7
11.13. Research boundaries 62
11.14. Research design 63
11.14.1. Validity and Reliability test of the questionnaire 64
11.14.2. Validity Test 64
11.14.3. Reliability Test 65
11.14.3.1. Cronbach’s Reliability Test 66
11.15. Research tactics 66
11.15.1. The theoretical population 66
11.15.2. Sampling Frame 67
11.15.3. Sampling procedure 67
11.15.4. Implementation 68
11.15.5. Data Collection - Phase 1 68
11.15.6. Phase 2 Final Survey 69
11.15.7. Data Processing 70
11.15.7.1. Brand Recall 70
11.15.7.2. Fishbein Analysis 72
11.15.7.3. Factor Analysis 72
11.15.7.4. Perceptual Maps 72

11.15.7.5. Brand Loyalty 73


11.15.7.6. Cluster Analysis and Segmentation 74
12. Recommendation and conclusion 76 8
12.1. Playing with the PLC 76
12.2. Recommendations 4 P’s 78
12.2.1. Product 78
12.2.2. Price 78
12.2.3. Promotions 78
12.2.4. Place 79
12.3. Continue with up gradation 80
12.4. Future Challenges 81

12.5. Store centric recommendations 81


13. Marketing strategy 83
13.1. Segmentation 83
13.2. Positioning 85
13.3. Real Positioning 87
13.4. Psychological Positioning 87
14. APPENDIX 88
14.1. Reliance communication- Timeline 88
14.2. SWOT Analysis 92
14.3. Product portfolio 95
14.4. Retail Revolution:-Reliance World 96
14.5. Customer survey questionnaire 97
9
14.6. Age Profile of Sample Population 106
14.7. Internet Data Card Preference 106
14.8. Recall Pattern 106
14.9. User Preference 107
14.10. Respondents’ preference of Internet Connection 107
14.11. Brand Satisfaction of Reliance 108
14.12. Brand Loyalty 108
14.13. Price Sensitivity in Internet data card Market 109
14.14. Fishbein Analysis 109
14.15. Average attitude perception score of each brand 110

14.16. Factor Analysis 111


14.17. Cluster Analysis 112
14.18. References 115

10

Session: 2007 - 09

CERTIFICATE OF THE GUIDE


This is to certify that the Project Work titled “(CONSUMER BUYING
BEHAVIOR WITH A FOCUS ON PERCEPTION OF INTERNET DATA
CARD)” is a bonafide work of Mr. /Ms Pradipto Dey. Carried out in partial
fulfillment for the award of diploma under my guidance. This project work is
original and not submitted earlier for the award of any degree / diploma or
associate ship of any other University / Institution.

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

Growth on the Data Cards. Especially happen when business travelers,


academicians as well as other professionals need to access emails and corporate
applications as well as personal requirements during urgent trips and travels.
Now, what kind of a company enters an industry with competitors alrea
dy
entrenched? Which ones actually succeed? The answer to both the questions
is
Reliance Infocomm now known as Reliance Communication. Reliance Infocomm
is a confident and smart company that was able to enter a saturated and highly
competitive industry, and emerge at the top. The cut-throat competition
in the
telecommunication sector of India posed a great threat to the developm
ent of
Reliance Infocomm. When Late Dhirubhai Ambani charted out the mission for
Reliance Infocomm in late 1999 he had a clear game plan to position itself on th
e
platform of affordable as well as world class information and communicat
ion
service highlighting unparalleled value to create customer delight and
enhance
business productivity.

The project aims to identify the problems faced by Reliance Communication i


n
the internet data card market. Customers often feel that service providers do no
t
deliver what they promise. They feel players should present the terms
and 14
conditions and tariff plans/schemes in clear terms. The research we cond
ucted
also supports this fact. We have suggested a marketing plan for Reliance
data
card along with other suggestions for Reliance Communication to face t
he
competition in the near future and the long run.
15
5. Introduction of Project
The objective of the study is to understand the consumer’ pre, post, d
uring
perception of data card and consumer buying behaviour and attitude for
Reliance data card. To understand the former part, we created a focused group
questionnaire and conducted a focused Group Discussion (FGD) on data card
;
we analyzed the questionnaire and the FGD to create an extensive questionnaire
understanding the buying behavior of consumers of Reliance data card and other
brands. We had a Fishbein analysis done on the 64 respondents from Kolkata to
identify how much of buying intension is due to attributes and how much due to
influence by referrals. We further extended the study to understand th
e
perceptual mapping of brands. Our analysis has revealed that the consumer is
satisfied with the brand Reliance data card and its attributes. Howeve
r
Reliance has not performed well with the customers who are considerabl
y
concerned about internet connection speed. This following detailed analysis is
presented in our assignment.

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

6.2. The Vision


The vision of the company is as follows:
We will leverage our strengths to execute complex global-scale projects
to
facilitate leading-edge information and communication services affordable to all
individual consumers and businesses in India. We will offer unparalleled value
to create customer delight and enhance business productivity. We will
also
generate value for our capabilities beyond Indian borders and enable millions of
India s knowledge workers to deliver their services globally. (Communicat
ion,
Reliance Communication 2006)

6.3. The Mission


The mission statement of the company was, “Karlo duniya muthi mein.” It is the
mission of the company to become number one in the field of telecommunication
and provide high quality products and services at the cheapest possible price.

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.

7.1. Low-Cost Leadership Strategy


Reliance Infocomm launched into the market with a package called the
Dhirubhai Ambani Pioneer Offer which provided with the lowest airtime rates
and value added services for free. Reliance Infocomm reduced the rates
of
outgoing calls, while the competitors charged at rates as high as Rs.7 (US$0.
15)
per minute. All incoming calls were free.
Three strategies helped in cutting call costs. Firstly, Reliance charged
a higher
rental, Rs.600 (US$13.3) per month, compared to the rest of the provide
rs. But
users received about 400 minutes of free talk time, while the competitors offere
d
none. Since the incoming calls were free the user could utilize the
entire 400
hundred minutes to make calls. Secondly, Reliance Infocomm reduced the pulse 2
0
rates to 15 seconds from the earlier one minute. For a user this mea
nt more
control over the costs, while for Reliance, it meant higher volumes of calls.
The
lower pulse levels allowed the low income users to pass on information through
short duration calls. Thirdly, Reliance Infocomm ensured that calls to
any
Reliance phone in India were charged at Paise 40 (0.8 US cents) a minute, a rat
e
which people could not even imagine before that time. For Reliance Infocom
m
this meant faster adoption of Reliance services across India, because of the ver
y
low long distance rates, made possible by low costs, since the calls w
ould be
carried entirely through the Reliance owned network, thus avoiding prof
it
sharing with any other carrier.
Value added services like voice mail, call waiting, call holding, call div
ert, call
identification and call conferencing were charged at a premium by all the other

players in the market. Reliance Infocomm offered all these services fr


ee of
charge. In addition all text messaging was offered free of charge.
7.2. Differentiation Strategy
Reliance Infocomm used exceptional service and new technology to distinguish
their services from the others. They were the first providers to use WLL, a lowe
r
frequency band, and CDMA technology. Using CDMA helped Reliance
Infocomm to accommodate large number of users, which they would have not 21
been able to do otherwise. Since they did not have to pay heavily for the licens
e
for WLL they were able to charge low rates. Thus utilizing the new technol
ogy
helped them gain low costs.
When most other mobile operators focused exclusively on the provision
of
mobile services, Reliance Infocomm started offering all the services which could

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.

7.3. Organization Structure


Reliance in the beginning used the modular structure. Reliance Industries
, the
parent company of Reliance Infocomm, is the largest private sector corporat
ion
in India with stakes in petroleum, petrochemicals, engineering, and finance. Thi
s
scale of operations provided great leverage as the company ventured in
to
telecommunications. Reliance Infocomm, in the initial stages, shared all Relianc
e 22
resources to ensure cost effectiveness in every service that it provided. Re
liance
Infocomm operated out of existing Reliance Industries offices and utili
zed the
capital and personnel resources to the extent possible. Reliance Engine
ering
Associates Ltd, an associate company, made sure that the engineering a
nd
manpower costs were maintained at the bare minimum. In developed countries
human resource costs account for 22 per cent of a companies’ operating cost as
against 5 per cent in India. But Reliance Infocomm utilizes all their
internal
resources in large numbers which further reduces the cost.
Later Reliance Infocomm centralized most of its operations. 80 per cen
t of
Reliance Infocomm’s administration and operation is centralized. Compared to
the best telecom networks in the world they have deployed only half the number
of people per 1,000 lines making their human resources the highest productiv
e
resource. Reliance also exploited the extensive petroleum distribution chan
nels
that it had set up in promoting and distributing Reliance Infocomm services.

7.4. External Environment


By December, 2001 the user base of mobile users in India had grown to around 5
million. By the time Reliance Infocomm was launched it had grown to around 12
million. Two other service providers, who had entered the mobile market late
, 23
could not cope up with the competition, and were taken over by other
global
service providers. Thus it can be seen that the mobile market in India
before
Reliance Infocomm was growing at a rapid pace, but was highly competitive and
companies who could not keep up had to exit the market. Reliance Infoco
mm
entered such a market and emerged as India s largest mobile service prov
ider,
within 7 months of commercial launch (Communication, Reliance
Communications 2006).
At present Reliance Communication is in a very unstable and complex
environment. Everyone in the market is seeking to expand and increase
their
subscriber base. Service providers are adding at an average of a mill
ion
subscribers every month. New mobile technologies such as 3G, EDGE, and
WIMAX are being introduced in India. The providers try their best to incorporate
the new technologies in their services as soon as possible.

7.5. Global Expansion


Within the first year of launch Reliance Infocomm entered the world markets. Its
first step into global expansion was the purchase of UK based, Flag Telecom for
$207 million, on October 16, 2003 (Telecom 2003). Flag Telecom is a
leading 24
provider of international wholesale network transport and communications
services. By taking over Flag Telecom, Reliance Infocomm acquired its
established customer base of more than 180 leading operators, including
all of
the top ten international carriers (Telecom 2003).
It entered the US markets by purchasing Yipes Holdings Inc. for 300 mi
llion
dollar cash on July 16, 2007. It bought 100% shares of Yipes Holdings
Inc. by
cash. Yipes is based in San Fransisco. It is a provider of managed ethernet
and
application delivery services, thus it offered Reliance an opportunity
to tap a
fast-growing market. Yipes had coverage to 14 metro cities in the United States
,
which Reliance plans to expand to 30 and also take it to Asia, Europe, Africa an
d
the Middle East (ANI 2007) .

7.6. Information as a Weapon


To understand the market better than its competitors and provide super
ior
service, all while growing at a swift pace Reliance Infocomm used information
technology as a strategic weapon. To start with, it laid 60,000 kilom
eters of
optical fiber network across India. The only way to manage the challenges was to
establish a scalable and adaptable decision-support system (DSS) right
away.
They started their DSS even before their sales side was launched.
25
The DSS architecture of Reliance Infocomm is given below:

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.

7.7. Financial Performance and Analysis

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

8.1. 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; wh
ereas
equipment manufacturers are witnessing growth and decline in successive
quarters as sales is dependent on order undertaken by the companies. A
irtel,
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 subscribe
r base
has also provided significant impetus with its subscriber base reaching over 11m

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

9.4. Reliance Data Card - an insight


Reliance data card has been developed as technologically superior. Reli
ance s cutting
edge CDMA2000 1X technology offers pan-India coverage.
Internet can be assessed in 2200 towns across in India soon
to be increased to 5700 towns. These can be used to connect
to the Internet from laptops as well as Desk top PCs.
38

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

Penetration of Internet in India


0
10000000
20000000
30000000
40000000
50000000
60000000
1 2 3 4 5 6 7 8 9 10
Years
Users
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
% Penetration
Year Users % Pen
Source: India Online 2007, Juxt Consultant report
10.2.2. Common uses of the Internet
E-mail
World Wide Web
Remote Access
Collaboration
Streaming Media
File Sharing
Voice Telephony
46
10.3. Driving growth of internet data card
Growing businesses in all segments, necessity to access emails and cor
porate
applications during urgent business trips and the urge for some entertain
ment
while on the move are some drivers increasing the demand for data card usage.
Apart from these factors, as the name of Tata Indicom s data card, Plug 2 Surf
,
suggests, ease of use with plug and play factor is also a driver for growth.
SP Shukla, president, Personal Business, Reliance Communications, says that
faster surfing and higher download speeds, convenience of surfing the
Internet while on the move, simple to use, and affordable tariffs are among the
key reasons for the data card growth, in both the laptop and desktop segments.
Wireline broadband connections are yet to penetrate the vast semi-urban
and
rural parts of the country where entrepreneurs, officials, students, etc ha
ve the
need to surf the Internet for various purposes. Though the laptop penetration in
these areas has not made a significant mark, desktop penetration is
comparatively more.
With data cards offering convenient access to the Internet, a number
of
companies have started to tie up with service providers to avail bulk n
etwork
connections for their employees on the go and allow them to utilize the
ir time
during business travels. Since data cards can be used with desktop also, it cu
ts
down the office infrastructure costs as well. With the data card segm
ent
witnessing steady growth, affordability will go up, which, in turn, will
drive 47
growth. “As the data card growth increases, speed evolves and prices co
me
down, affordability will go up and more users can begin to think of data card
as an affordable solution,” says an Airtel spokesperson. And growth of mobile
telephony in India has created users with specific needs like m-commerce t
hat
require wireless Internet, driving the wireless data card growth. Once
the
concept of mobile wallet and its applications hit the market in India in the
near
future, the wireless data card segment is also expected to witness an exponentia
l
growth.
Apart from this, Internet charges in costly hotels are very high. Wit
h the
availability of data cards and USB modems, frequent business travelers who stay
in costly star hotels can access the Internet and corporate application
s on their
laptops and avoid using the Internet facility at hotels, saving on hi
gh Internet
charges.
10.4. The Deterrents
All players are competing with each other to give affordable tariff rates for th
eir
data cards. But still the rates are very high when compared to countries like th
e
UK. In the UK, wireless broadband connection through 3G technology cos
ts
about £10 per month and that too with a data download speed faster than 256
Kbps. International travelers who have used data cards with faster speed are not
satisfied with data cards and USB modems services offered in India. So, in India
, 48
data cards mean accessing a bare minimum net connectivity only for a si
zable
population. That is why it is said that data cards have not exactly take
n off in
India.
11. Consumer behaviour theories
11.1. Consumer perception and consumer behaviour
According to Rice (1993), perception is the initiator of behaviour. 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 crea
te a
meaningful picture (Kotler, 2000). Different people tend to perceive qu
ite
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 behaviour provides a sound basis for identifying


and
understanding the factors that influence consumers purchase on line. Schiffman
and Kanuk (2000) state that the behaviour that consumers display in searchi
ng, 49
purchasing, and evaluating products/services is those that they expect
to fulfil
their needs.
Although perception and behaviour are typically treated as two complete
ly
separate phenomena, i.e. the input and output respectively, it has been suggeste
d
that perception and behaviour are in fact two sides of the same phenomenon and
are closely related to each other (Rice, 1993). In order to understan
d what
customer perceive and how they act to affect their perceptions, study
of
perception and behaviour should be treated as one integral part.
11.2. 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 Thorelli
et
al. (1975). Thorelli’s decision model illustrates the type and shows the
re are a
series of semi-discrete steps which take place over time for the buye
rs and
purchasers.

11.2. 1Predispositions (Before Purchase):


According to Thorelli et al (1975), the prospective buyer possesses a certain st
ock
of cognitive content, including his own personality or self-concept, attitudes a
nd 50
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.
11.2.2. Product Need:
As a result of either cognitive activity or some environmental stimulus, the buy
er
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 stimu
li. Some
authors also take this need recognition stage as the entry point. Chaston
(2001)
argues that the potential consumer will not implement any of the other steps i
n
the buying process until need recognition has happened.
11.2.3. External Search:
Thorelli et al (1975) describe that this stage represents all search of the
external
environment for alternative solutions as well as for information helpfu
l 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 purchas
e 51
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).
11.2.4. Evaluation of Alternatives:
This stage consists of the physical and cognitive activities involved in compari
ng
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 consid
er
several attributes in their purchase decision. These attributes used by consumer
s
for evaluation are also called choice criteria. Jobber (2001) has made
a good
summary of these choice criteria. In fact, consumers attempt to opti
mize the
trade-off between product benefits, product costs, the desired personal utilit
ies
and other variables.
11.2.5. Purchase Activity:
Purchase activity involves the actual final decision and physical activ
ities
involved in making (or not making) the purchase. This stage includes the actual
transaction. However, as suggested by Kotler (2000), perceived risks of
a
consumer can heavily influence his decision to modify, postpone, or av
oid a
purchase decision. Therefore it is necessary for marketers to understand fa
ctors 52
that might provoke perceived risk in consumers and work out solutions
to
reduce that.
11.2.6. Post Purchase Behaviour:
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’ subseque
nt
behaviour. 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.

11.2.7. 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 atti
tudes,
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 the same type.
53
11.3. Consumer perception
11.3.1. Introduction
Our perception is an approximation of reality. Our brain attempts to make sense
out of the stimuli to which we are exposed. This works well, for example, when
we “see” a friend three hundred feet away at his or her correct height; however,
our perception is sometimes “off”—for example, certain shapes of ice cream
containers look like they contain more than rectangular ones with the
same
volume.
11.3.2. Factors in perception
Several sequential factors influence our perception. Exposure involves the exten
t
to which we encounter a stimulus. For example, we are exposed to numerou
s
commercial messages while driving on the freeway: bill boards, radio
advertisements, bumper-stickers on cars, and signs and banners placed a
t
shopping malls that we pass. Most of this exposure is random—we don’t plan to
seek it out. However, if we are shopping for a car, we may deliberately seek ou
t
advertisements and “tune in” when dealer advertisements come on the TV
Exposure is not enough to significantly impact the individual—at least not based
on a single trial (certain advertisements, or commercial exposures such
as the
“Reliance communication” logo, are based on extensive repetition rather tha
n 54
much conscious attention). In order for stimuli to be consciously pro
cessed,
attention is needed. Attention is actually a matter of degree—our attention may
be quite high when we read directions for getting an income tax refund, but low
when commercials come on during a television program. Note, however, tha
t
even when attention is low, it may be instantly escalated—for example,
if an
advertisement for a product in which we are interested comes on.
Weber’s Law suggests that consumers’ ability to detect changes in stimulus
intensity appear to be strongly related to the intensity of that stimulus
to begin
with. Several factors influence the extent to which stimuli will be noticed.
One
obvious issue is relevance. Consumers, when they have a choice, are also mor
e
likely to attend to pleasant stimuli (but when the consumer can’t escape,
very
unpleasant stimuli are also likely to get attention—thus, many very irrit
ating
advertisements are remarkably effective). One of the most important fa
ctors,
however, is repetition. Consumers often do not give much attention to
a
stimuli—particularly a low priority one such as an advertisement—at any on
e
time, but if it is seen over and over again, the cumulative impact will be great
er.
Surprising stimuli are likely to get more attention—survival instinct requires u
s
to give more attention to something unknown that may require action. A greater
contrast (difference between the stimulus and its surroundings) as well
as 55
greater prominence (e.g., greater size, center placement) also tend to
increase
likelihood of processing.
Subliminal stimuli back in the 1960s, it was reported that on selected even
ings,
movie goers in a theater had been exposed to isolated frames with the
words
“Drink Coca Cola” and “Eat Popcorn” imbedded into the movie. These frames
went by so fast that people did not consciously notice them, but it was reported
that on nights with frames present, Coke and popcorn sales were significant
ly
higher than on days they were left off. This led Congress to ban t
he use of
subliminal advertising. First of all, there is a question as to whet
her this
experiment ever took place or whether this information was simply made up.
Secondly, no one has been able to replicate these findings. There is rese
arch to
show that people will start to giggle with embarrassment when they are briefl
y
exposed to “dirty” words in an experimental machine. Here, again, the exposure
is so brief that the subjects are not aware of the actual words they saw, but i
t is
evident that something has been recognized by the embarrassment displayed.
11.4. Consumer behaviour towards Internet data
card
When consumer purchase internet data card they still perform a similar sequence
of tasks: searching for information about different products, evaluating
these 56
alternatives, and transacting the chosen alternative. However, the famil
y and
friends has great impact on these activities.
11.4.1. Problem recognition:
The starting point is feeling the need or recognition of a problem. The need fo
r
accessing internet at anywhere can trigger the recognition of a need or problem
and can have significant impact by encouraging customers to begin the
information search process (Breitenbach and van Doren, 1998).
11.5. Information Search:
Once customers identify the need they may seek information about retailer
s or
products to help them satisfy. Customer search regarding internet data
card
could be limited because it’s a specialty product. Our analysis has shown that in
terms of internet data card customer mostly refer to family and frien
d as
reference group. These reference groups affect buying decision offering
information like price, tariff plan availability and so forth. Providing rewards
for
specific purchasing behaviors for instance friends could appreciate that
you
could access internet at anywhere if you are carrying a laptop. By identifying a
nd
affiliating with reference groups, consumers create, enhance, and maintain their
self-image. Customers who want to create an image of mobile, technological
ly 57
updated person as well as want to be seen as members of a higher social clas
s
might buy internet data card from Reliance or other competitor’s products.

11.6. Product Evaluation:


During this stage, consumers process different product information and make a
final value judgment. The multiattribute model provides a useful way f
or
summarizing how customers use the information they have about alternati
ve
brands of internet data card. From our consumer behaviour analysis we
have
found out that on this stage customer evaluate data card on its
several
attributes like price, net speed, tariff plan which come along with, looks etc a
nd
they also decide which attributes are most important for them. The
multiattribute model shows that how a consumer gives weights of importance to
the various attributes of a data card. A sample multiattribute model which
is
actually has been taken from one of our questionnaire shown that how
a
consumer gives importance to different product attributes of data card.
No. Attributes/Benefits Rating
1. Price 4
2. Easy handling 3
3. Net Speed 5
4. Signal Strength 5
5. Availability in store 3 58
6. Tariff plan 4
Total evaluation score for each attributes is 5.From the above sample table we
can see that consumer is giving more importance to net speed and sig
nal
strength. So marketer should put more focus of highlighting these two
attributes
11.7. Purchase Activity:
Its not necessary that customer will always purchase a brand or data card with
evaluation. The data card offering benefits (having the highest evaluation) ma
y
not be available in the store, or the customer may feel that the risks outweigh
the
potential. During purchasing customer also may feel that their data card migh
t
not be able to meet their expectations. Therefore retailer should ensur
e that
their sales persons are knowledgeable enough and they are also skilled
presenter of their product, otherwise it could raise confusion in cust
omers’
mind during purchasing of data card. Reducing the actual and perceived time
of purchasing.
11.8. Post Purchase Activities:
As we know buying process doesn’t end when a customer purchase a product.
From focus group interviews we have come to know that after making a
purchase of data card, customer evaluate their experience on the basis
of net 59
speed, signal strength amount of money they have spent. Customers often feel
that service providers do not deliver what they promise. They feel pl
ayers
should present the terms and conditions and tariff plans/schemes in cl
ear
terms. Mentioning every small detail regarding the tariff plans must b
e
included in the bill. For example, if a company intends to collect an advanced
monthly rental from customers, then it has to mention that in its tariff plan, s
o
that customers are not shocked when they see a bill that includes mont
hly
advance rentals as well. This kind of practice might keep customers away from
going for a particular brand.
11.9. Perceived benefits of Internet data card
Among the process there are various factors that might influence consum
ers¡‾
purchase during their purchasing process. Many of these factors also reflect
the
advantages and disadvantages of Internet as a shopping medium. The
advantages or benefits currently conceived by people are described as
the
followings.

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.

11.11. Research Objective


11.12. Research Question
What is the inter-brand recall of Internet data card and their existi
ng image in the
consumer’s mind?
What is the effect of non-attribute factors on the purchasing decision
of Internet data
card?
How strong is the brand loyalty of customers towards Internet data card?
What are the factors that play the most important role in a consumer’s choice of
buying
Internet data card?
11.13. Research Boundaries 63
The research was conducted in Howrah and the respondents were chosen on the
basis of their usage of Internet data card.
11.14. Research Design
Phase One -> Secondary Data
In the initial phase of the project we focused on secondary data collection
. The
data collection primarily focused on

History of Reliance Communication


The financial results of Reliance Communication
Products of Reliance Communication
Descriptive
research
Exploratory
research
Causes of the
problem
Problem
Causes of the
problem
64
Organizational structure
The competitors in the market
The strategy adopted by Reliance Communication and its competitors in
the market.
The secondary data collected in the first phase of the project helped t
he
group in getting better understanding of the Internet business and the
various brands competing in this market.
Phase Two -> FGD
After the secondary data collection was complete, two focused group discussions
were done. A group of 3 people and a group of 5 people were used for the two
FGDs. Through these FGDs, the various attributes that a person looks for in the
data card were listed down. FGDs also helped the group in understanding the
buying behavior, the consumption pattern, the influencers etc which fur
ther
helped in preparation of the questionnaire.
Phase Three -> Questionnaire
From the results of FGDs, a pilot questionnaire was formed. The purpose here
was to get an accurate snapshot of particular aspect of the market environment
hence the pilot study was a descriptive research that identified all
possible
problems and factors influencing buyer behavior. An analysis of the pi
lot
questionnaire was done.
11.14.1. Validity and Reliability test of the questionnaire
11.14.2. Validity Test
Validity tests how well an instrument that is developed measures the particula
r
concept it is supposed to measure. According to Sekaran (1992), validity tests c
an 65
be grouped under three broad headings: content validity, criterion-relat
ed
validity, and construct validity. Face validity is a basic, and a ver
y minimum,
index of content validity. After consulting with people that are acquainted with
the topic, it proves that the dimensions and elements of the concept have
been
well delineated. This is further confirmed by the results from pilot study.
11.14.3. Reliability Test
It is necessary that scales are reliable when they are included in the study. On
e of
the most important aspects of reliability concerns the scale’s internal consistenc
y
which actually indicates how the items measuring a concept hang well together
(Pallant, 2002). Cronbach’s alpha coefficient is a commonly used indicato
r of
internal consistency. It reflects how well the items in a set are po
sitively
correlated to one another. The closer Cronbach’s alpha is to 1, the hi
gher the
internal consistency reliability (Sekaran, 1992). According to Pallant (20
02), the
ideal Cronbach’s alpha coefficient of a scale should be above 0.70.
Internal consistency is firstly checked for the questionnaire scale of
Section A.
The Cronbach’s alpha coefficient for it is 0.8257, which means that scale
s are
reliable. Questionnaire scales of Section B are also checked for the
internal
consistency. The result shows that Cronbach’s alpha coefficient is 0.7871
; the
value is also higher than 0.70, which indicates that reliability is good (See Ta
ble ).
Table : Cronbach’s Alpha for Each Group of Questions 66
Number of questions- 17
11.14.3.1. Cronbach’s Reliability Test
Perception towards Reliance data card 0.8257 Good
Perception towards Other brands 0.7871 Good
From the analysis, the redundant variables, hard to analyze variables et
c were
removed so that people could easily fill in the questionnaire. After the pilot t
est,
the final questionnaire was formed. The questionnaire was designed to capture
both quantitative and qualitative information. The overall design of
questionnaire has tried to capture data in the following areas: To an
swer the
question of what are the predominant elements of internet data card consumers
in terms of:
Profile and age
Buying Behavior and Decision-making process and to answer how
Reliance data card compares with competition and what should it be
targeting to be able to grow
Relative importance of different attributes
Brand awareness and preference
Brand switching behavior/ Brand Loyalty

11.15. Research Tactics


Questionnaire (Refer section )
Sampling Plan
11.15.1. The theoretical population: All people aged 16-80 in Kolkata who
have purchased internet data card. 67
11.15.2. Sampling Frame: Company own operated outlets, cyber café,
institutions are places where the respondents where drew our respondents were
interviewed.
11.15.3. SAMPLING PROCEDURE:
Calculation of the sample size by the help of the pilot survey.

Sample size of the pilot survey: 30



Formula use Mean (μ): X bar 1.96 σ/√n

1.96 For 95% confidence level


X bar
σ = Standard Deviation of the population
μ = Mean of the population
Length of the Confidence Interval
= 2×1.96×σ ≈ 4σ/ 2
Here √n ≈ 4σ =2σ
n = 4σ² (from the cale of five σ ≈4)
n= 64
Therefore, the ample ize for the final urvey i  64

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.

Su piciou  Traditionali t  (ST):


The e are men who are more traditional and not very much willing to try new
brand . They are a lightly older age group (33-55 year ) who e main concern i 
the ea e of u e, peed, affordability, availability of proffered product. They a
l o
how a preference for broadband connection which they are u ing.
11.15.6. Final Survey
The Final Survey helped u  to collect data on
Main influencer  toward  the purcha e data card ,
Benefit  that are mo t important for each egment of cu tomer ,
Comparative brand and benefit perception ,
Trade-off  between price and quality,
Preferred point of purcha e,
Con umer’  po ition within the Need  Hierarchy Model (Awarene ,
Knowledge, Liking, Preference, Commitment and Conviction) with
re pect to own and competitive brand  and con umer ati faction.
70
11.15.7. Data Proce ing
Age profile, product preference and place of purcha e of the urveyed ample
are mentioned in ection 11.15.1 and 11.15.3 re pectively.
Data Analy i 
11.6.7.1. Brand Recall
A ample of cu tomer , which i  repre entative of the Kolkata population, wa 
urveyed and the fir t unaided recall of the brand  by the e cu tomer  wa 
recorded. (Refer ection 14.5)
It wa  ob erved that Reliance data card  had the highe t brand recall among t al
l
the competing brand of Internet data card. Thi  can be attributed to
variou 
rea on  like brand perception, u age pattern, adverti ement expenditure
etc.
ome of which would be analyzed in the ub equent ection . Buying Intention
The urvey admini tered had que tion  which mea ured the importance of
variou  attribute  like price, net peed, ignal trength, offer  & di
count  of
variou  data card  and pecifically for Reliance data card.
11.6.7.2. Fi hbein Analy i :
The urvey al o mea ured the attribute core  for other competing brand  l
ike,
Tata-Indicom, Vodafone, BSNL and Airtel. Along with the data card for Reliance,
71
an average attribute core wa  computed acro  the 64 ample  for each attribute
for each of the data card  brand. Fi hbein analy i  wa  performed by converting
the Likert cale from 1 to 3 to -3 to -1. Con umer’  attitude about each brand wa 
calculated and plotted a  hown on below. (Section 14.15)
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
Chart: Con umer attitude about each brand
Tata-Indicom had the highe t con umer perception core of 30.348 followed by
Reliance and Airtel with a core of 28.235 and 25.733 con equently. But taking a
look at individual con umer attitude core, we found that Reliance wa 
preferred by almo t 42% of the people urveyed and Tata-Indicom by 28%.

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.

11.7.5. Brand Loyalty


The que tionnaire had pecific que tion  to mea ure the brand loyalty f
or the
brand that the con umer wa  u ing at that point of time. From the graph  hown,
74
it can be concluded that the Brand loyalty in the internet data card 
egment i 
only 75% where cu tomer  would tick to it irre pective of the availability othe
r
data card with high peed with rea onable price. Thi  figure ay  that 75% of th
e
cu tomer  would rather go to ome other retailer in earch for their
preferred
internet data card than to buy ome other brand from the other company’  outlet.
Price en itivity mea ured along the line  of a hypothetical price and change
in
tariff plan  increa e in their preferred brand wa  around 25%. Thi  f
igure
indicate  that 75% of the cu tomer  do not hift from their preferred
brand to
ome other brand becau e of a price hike in their preferred brand, provided it’  a
rea onable price hike wherea  25% would move to ome other brand. (Re
fer
ection 14.12)
11.7.6. Clu ter Analy i  and Segmentation
K-mean  egmentation wa  performed ba ed upon the factor  thu  obtained
from factor analy i . The clu ter analy i  howed 3 clear egment . De cription
of
the egment  i  a  below
Clu ter 1
46% percent of re pondent  formed a part of thi  egment. With age group of 23-
28 year , thi  clu ter formed the young age group egment. The majori
ty of 75
people in thi  egment (66%) u e internet data card. In thi  egment 27.42% were
Reliance cu tomer  and the re t 72.58% u ed competitor brand .
With an average u age time of 240 minute  per day, thi  egment clearly form  a
part of high u age clu ter.
They were pa ive information eeker  yet kimmed through a lot of ource  for
eeking information about their purcha e deci ion. Word of mouth formed the

be t ource of information for thi  egment.


Clu ter 2
29% percent of re pondent  formed a part of thi  egment. An average age of 30
year  mean  thi  egment formed the middle age group clu ter. 76% of
the
cu tomer  in thi  egment were bu ine  cu tomer , i.e. u e data card
for
bu ine  purpo e . The bu ine  cu tomer  urveyed were primarily in Reliance
R World; hence thi  egment may be interpreted appropriately. With 32%
Reliance cu tomer , among the re t, Tata-Indicom and Airtel were the competitor
brand  preferred among u er  in thi  egment (52% u er ).
The level of information earch wa  extremely low and thu  can be aid to be low
involvement egment of the market. They did not refer to many ource  and al o
had low importance rating  to the ource  being referred to for eeki
ng
information about the product to aid their purcha e deci ion.
76
Clu ter 3
25% percent of re pondent  were a part of thi  egment. The lowe t average age
of 38 year  mean  thi  egment formed the aged Cu tomer . Almo t 96% of the
cu tomer  in thi  egment u ed data card for per onal purpo e . Thi  egme
nt
had 64% Reliance u er  and the competitor brand  eem lea t preferred to t
hi 
egment and can be aid to form a big part of the reliance cu tomer ba e.
The cu tomer  u ed data card to acce  information and other per onal purpo e ,
and with a heavy u age rate i  the opportunity egment for Reliance.
The level of information earch wa  extremely high among thi  group and thu 
can be aid to be Inten ive information eeker  in the market. Among the ource 
they referred to, TV adverti ement  eem to be the mo t important ource for thi

egment be ide  word of mouth. Thi  wa  the only egment that gave credibility
to ad  on internet a  a ource of information. Relailer’  recommendation
too
formed a part of their purcha e deci ion.

12. Recommendation And Conclu ion


12.1. PLAYING WITH THE PLC:
Reliance ha  the wide t internet data card  range and the deepe t product li
ne
in internet data card market, it  al o ha  broadband bu ine  a  well a  inte
rnet 77
connection GPRS .Thi  i  a double edged word becau e of the variety Reliance
offer and the cannibalization that can occur.
The egment  thu  formed and the component  extracted indicate that different
buyer group  have different deci ion variable , u e data card for acce
ing
internet for different purpo e  and have varied perception  about brand . All th
e
egment  require different pricing trategie  and hence Reliance hould come out

with different plan  pecifically targeting different group . Reliance h


aving
everal type  of tariff plan but it would have improved network connec
tivity
along with aggre ive promotional trategie ’ be an unbeatable advantage
in
upgrading the con umer throughout hi  lifetime and al o making him bran
d
loyal in the proce .
From the perception map , we ee that Reliance ha  an image of having
high
choice of tariff plan  rate  and u age co t . Further, it come  out that Relianc
e i
not a u er friendly ervice provider. U er  have taken to Reliance e 
entially
becau e of high recommendation from friend  and family. According to o
ur
re earch weak ignal trength and low net connection peed could be
a
deterrent for Reliance data card . Hence, Reliance hould aim to pro
viding
higher network coverage, good ignal trength, and more efficient re po
n e
reque t . Thi  could be done by etting up more network tower  and having a
more cu tomer friendly focu  in tore a  well out tore activitie . 78
Our analy i  indicate  clearly reliance i  popular among the youth bec
au e of
low u age rate. The e u er  u e data card mo tly for entertainment . Thi  target
egment can be attracted by adverti ing in Televi ion and internet.
Al o, word of mouth publicity clearly core  above all form  of infor
mation
earch, primarily becau e of it  convenience and ource credibility. Eve
rybody
whom we urveyed believed in con ulting their “circle” for opinion  while
buying connection 
12.2. Recommendation  4 P’ 
12.2.1. Product:
The product  launched hould focu  on improving ervice re pon e i.e. better
cu tomer ervice and greater network connectivity.
12.2.2. Price:
It hould keep focu  on reducing u age rate  and be a price leader for price
en itive heavy u age egment .
12.2.3. Promotion :
One important finding of our FGD  and Con umer Survey wa  that not a ingle
con umer wa  aware of the fact that Reliance ha  different tariff plan . Thi  ca
n
be attributed to one or more of the following rea on :
79
The brand equity of Reliance data card i  very high (42% TOMR in our
tudy). But the brand development i  pretty low.
The con umer  have low involvement and do not earch for information.
Thi  implie  that wirele  data card i  becoming a commodity.
Reliance ha  pent on adverti ement  mo tly for the mobile bu ine , not
on internet data card . Hence the information available to public i 
limited.
To di commoditie  the category, to increa e cu tomer loyalty and repeat
purcha e, promotion  have to be done on a bigger cale than what i  currentl
y
been done. The promotion  hould have more of a pull effect in the
adverti ement  that communicate not ju t the price and offer /di count  but al o
the value , attribute  which the con umer can relate to. In hort, mo
re
information ha  to be communicated to the con umer through ad , To lef
t the
ale  of internet data card Reliance can think to adopt of innovative
give away
trategy, for in tance de ign laptop  with manufacture  in uch a way th
at
there will be a built in Reliance internet data card.
It hould focu  on Televi ion adverti ing and Internet ad  primarily. Print ad 
do not eem to have that effective influence in purcha e deci ion  of
the
ample. Our analy i  ha  hown that word of mouth (WOM) marketing ha  a
excellent effect on the con umer purcha ing deci ion of internet data card. So
80
promotional trategie  could be given focu  on viral marketing campaign like
on SMS, e-letter  or blog  and o forth.
12.2.4. Place:
Reliance hould trengthen it  di tribution network and al o focu  on c
reating
more web world  with ea y acce ibility out ide citie  a  they are perceived to
be
authentic by con umer .
Note: The recommendation  have limitation  of a mall ample ize and a imple 
ampling.
12.3. CONTINUE WITH UPGRADATION
Reliance ha  been very ucce ful in it  trategy of upgrading the con ume
r in
the mobile bu ine  egment. Reliance ha  made ure that it make  it  con umer 
move up the product chain by introducing new, technologically uperior
product  and pha ing their PLC very well. But adly, thi  approach i  mi ing in
the wirele  data card egment. Though there are 3 variant , there ha  been n
o
effort made to communicate to the con umer of the uperior quality an
d
attribute .
Hence, we ugge t that Reliance adopt it  “upgrading the con umer” trategy for
the internet data card egment al o. Thi  up gradation ha  2 main advantage  8
1
We can fully leverage the Product life cycle and the individual pha e  of
the product  in different market 
We can make the con umer loyal to the brand over hi  lifetime.
12.4. Future challenge 
Introduce a product which would be de igned pecifically for Indian
con umer and ati fy a piration of youth .
To match the increa ed demand pattern  in the country.
Launching of innovative product  in regular and hort interval 
Reliance product  are de cending the cu tomer value hierarchy from that
of a potential product toward  an expected product. Competitor  like
Tata-Indicom, Vodafone, are moving up the hierarchy. So, Reliance will
find it tough to charge the moderately high price it ha  tilled now charge.
82
It i  al o highly likely that Reliance may not fully ab orb the con umer 
who upgrade from low peed internet connection device USB modem to
broadband. Hence, Reliance’  market hare might not grow a  good a 
their competitor Tata-Indicom or BSNL.
Reliance’  major challenge lie  in entering the premium market through an
upgraded ver ion of wirele  data card the way it did in mobile bu ine .

12.5. Store Centric Recommendation 


In order to increa e the Reliance wirele  data card ale  in exclu ive R w
orld 
and other franchi ee  acro  the country management ha  to take ome
aggre ive tep  to en ure that cu tomer  who are evaluating alternative
 are
coming in tore for purcha ing a Reliance data card. According to our re ea
rch
outcome  ome following mea ure  can be taken
Management ha  to en ure that C3 executive  e pecially tho e who are
dealing with internet connection  and data card  and al o other telecom
product , have exhau tive knowledge about their own product .
C3 executive  hould be given pecial behavioral training to recogniz
e
the cu tomer ’ expectation  and convey the all benefit  of the product
accordingly. 83
Management ha  to en ure that their ale  per on  are updated with new
cheme  regarding product.
Product knowledge a  well a  ale  technique  of the ale  per onnel
hould be reviewed frequently by the enior management.
C3 executive  hould be remained motivated through variou  incentive 
which are only proportionate to their target achievement .

13. Marketing Strategy


13.1. Segmentation
In the wirele  data card market there exi t different categorie  of cu tomer  w
ho
have different need  and are willing to pay different amount for the product tha
t
meet  their demand. Introduction of upgraded ver ion of wirele  data card for
in tance Vodafone recently launched wirele  data card (Globe totter) pec
ially
meant for tho e who frequently travel abroad would help Reliance identify
the
need  of the cu tomer  and take advantage of the egment which ha  no
t yet
been targeted by the company. Price en itivity, importance of attribute , p
oint 84
of purcha e deci ion maker  and cu tomer  influenced by additional feature  are
the factor  on which we will egment the upgraded internet data card market.
Segment one-> i  mo t price  en itive and value  additional feature the
lea t. Thi  egment ha  one third of our ample ize. A  Reliance i 
an
economic brand which focu e  on differentiating it  product  from the
competitor  and upgrading the cu tomer  in the value chain, targeting
thi  egment will be a trategically appropriate deci ion.
Segment two-> i  more influenced by attribute  of the product  and i  not
a price en itive egment. Reliance through it  wirele  data card i 
currently catering to thi  egment. Thi  egment ha  more than one fourth
of the urvey ample.
Segment three-> i  concerned about the attribute , additional feature  a 
well a  price. Thi  egment compri ed of more than forty percent of the
urvey ample.

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

Reliance data card need  to po ition it elf above Tata-Indicom in


order to
attract the target egment. 87
Perceptual Map
Tata-Indicom,
4 Reliance, 3.8
Vodafone, 4.2
Airtel, 3.6
BSNL, 2.9
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0 1 2 3 4 5 6
Attribute 
Product attribute 
Serie 2
Serie 1

13.4. Real Po itioning


In the urvey conducted, Reliance had the top of the mind recall of 4
2%. Thi 
how  that Reliance ha  an excellent real po itioning in the wirele  da
ta card
market and Reliance data card leverage thi  po itioning in the target market.

13.5. P ychological Po itioning


Reliance data card will primarily alter the attribute  importance in th
e target
egment by increa ing the importance of attribute  internet peed, ign
al
trength etc and decrea ing the importance of price. Thi  will be con i tent wit
h
it  trategy of moving the cu tomer  up the value chain.
88
14. Appendix
14.1. Reliance communication- Timeline
1999- Reliance Infocomm tarted it  Project Planning. Mr. Dhirubhai Amba
ni
under tood it very well that information technology had the capacity t
o
accelerate the growth of Indian economy leaving behind it  backwardne  an
d
underdevelopment.
2000- Mr. Dhirubhai Ambani’  dream tarted to take in a hape. Optic f
iber
laying proce  commence  in Gujarat, Andhra Prade h & Mahara htra
2001- Fir t Media Convergence Node made "Ready for Electronic " at Jaipur
2002-It’  a true gala time for Reliance Infocomm. Fir t Ba e Tran ceiver Stati
on
(BTS) made "Ready for Electronic ". It  obtained Obtain  International
Long
Di tance Licen e from Govt. of India. Commi ioned 1 t 60,000 route kilometer 
Optic Fiber Backbone ring. It  e tabli hed 1 t Point of Interconnect (POI) in Ne
w
Delhi. Hon ble Prime Mini ter of India, Atal Behari Vajpayee e-inaugura
te  89
Reliance Infocomm Hon ble Union Mini ter for Parliamentary Affair ,
Information Technology and Communication , Pramod Mahajan, inaugurate 
NNOC
2003- Reliance Infocomm Introduced Dhirubhai Ambani Pioneer Offer for
Reliance India Mobile ervice. Launched Reliance Web World in top 16 citie  a 
well a  International Long Di tance Service . Launched Reliance India Mob
ile
Service commercially in top 92 citie  with one million cu tomer  and India  fir
t
wirele  Point of Sale (POS). Introduced "Mon oon Hungama" Offer: In ta
nt
multimedia mobile phone and connection for ju t R  501.Set  world reco
rd -
acquire  one million cu tomer  in 10 day . Launched R Connect Internet
connection cable. Reliance became India  large t mobile ervice provider within
7 month  of commercial launche .
2004-International whole ale telecommunication  ervice provider, FLAG
Telecom amalgamate  with Reliance Gateway, a wholly owned ub idiary of
Reliance Infocomm. Reliance Infocomm receive  the Mo t Promi ing Service
Provider of the Year 2003 (A ia Pacific) award at the A ia Pacific Te
chnology
Award  in tituted by Fro t & Sullivan. Introduced Railway Ticket booking from
R World data application  uite of Reliance India Mobile. Reliance Infoc
omm 90
bagged the CDMA Development Group  3G CDMA Indu try Achievement
Award for International Leader hip.
2005- Reliance introduced fir t e-recharge facility in CDMA in India.
Reliance
India Mobile announced mega rural plan to cover 4 lakh village  and 65
crore
Indian  by December 2005. XLRI’  Po t-Graduate Certificate program in
Logi tic  Supply Chain Management (PGCLSCM) launched on Reliance Web
World  virtual cla room platform. Fir t of it  kind e-learning program in Indi
a.
Reliance Communication , UK launched Reliance India Call ervice in England
and Wale  enabling caller  to make high-quality call  to India from any landline
or mobile phone at economical rate . Apollo Ho pital and Reliance Infocom
m
join hand  to provide top cla  healthcare ervice to million  of Indian  in ove
r a
hundred Indian citie . Reliance Infocomm and China Telecom ign agreement for
telecom ervice  to provide direct telecommunication ervice, including a global
hubbing ervice, to ub criber  in the two countrie .
2006-Reliance Infocomm launched "One Nation, One Tariff" to enable Reliance
India Mobile prepaid u er  to call anywhere in India at Re one per m
inute.
Reliance Infocomm introduced R World in Hindi to become the world  fi
r t
operator to offer mobile data ervice  in more than one language on the
ame
hand et. Thi  will make it po ible for million  of Indian  to acce  the popula
r R
World with hundred  of every-day-u e application  in the national langua
ge. 91
Reliance Communication  launched India’  fir t Talking Me age Service (TMS)
enabling it  mobile u er  to end voice me age  to not only other mobile  b
ut
al o fixed wirele  phone  (FWP) and landline . Reliance Communication 
launche  Free Group Term Life Cover for it  CDMA ub criber .
2007-Reliance Communication  added a record 1.4 million ub criber  in
December ’06. Search Job  & Cla ified Ad  from Reliance Mobile World -
Reliance Communication  tie  up with Naukri.com. Reliance Cla ic Make 
Mu ic - FM Radio Phone  Launched at ju t R .1888. RCOM and QUALCOMM
Collaborated on CDMA2000 Expan ion. Reliance Communication  adjudged
World’  Top CDMA Operator at the Global CDMA Indu try Achievement 
Award  Fete.
2008- Reliance Communication  received Started-up GSM Spectrum. HDFC Bank
tied up with RCOM, turn  every Reliance Mobile into a credit card. One of the
main trategic dimen ion of RCOM i  exten ive focu  on all type egme
nt of
cu tomer , in order to do that it  recently tarted a religiou  portfolio by tyi
ng up
with Sadhana TV. Keeping eye on Internet data card market cenario it 
al o
drop the data card price.
92
14.2. SWOT ANALYSIS
Strength 
Reliance ha  fully integrated IP-enabled infra tructure platform thu  im
plying
application convergence, ervice convergence and network convergence.
It ha  been ucce ful in building right alliance  in the form of network allian
ce 
with Eric on and Ci co Sy tem , IT alliance  with HP Compaq, interconnecting
alliance . Thu  it can focu  on it  main bu ine  of marketing it  ervice.
Reliance ha  been able to maintain a trong di tribution capability. It ha  a e
lling
capacity of 25 million per annum a  compared to Nokia’  20 million per annum.
It ha  90000 hand et outlet  a  compared to Nokia’  42000. It ha  pre e
nce in
5000 town  erviced by 1500 di tributor  a  compared to Nokia’  pre ence
in
4600 town  erviced by 250 di tributor /micro-di tributor .
It can leverage it  trength in wirele  connectivity in the future to of
fer mobile
telecom ervice . It ha  wirele  connectivity available in 4500 town 
with a
peed of 144kbp .
93
Backing by a healthy balance heet of the parent company help  in inve ting
in
a et  for long term growth. Al o the Reliance culture focu e  on fin
ancial
con ervati m, thu  providing it with good human kill  at managing capital.
Weakne e 
The Reliance network doe  not deliver on the Quality of Service parameter  a 
decided by Telecom Regulatory authority of India (TRAI). Due to thi  it uf
fer 
from high call dropping rate  and a reduction in brand equity.
Reliance ha  a major pre ence only in C’ Circle. It need  to e tabli h it elf al o
in
other circle  o that it can compete with player like Bharti on a national cale
.
Opportunitie 
A trong economy and a growing market: The Indian telecommunication
indu try i  among t the fa te t growing telecom market  in the world an
d i
poi ed to deliver olid growth a  a re ult of everal economic reform  that have
lead to trong GDP growth pegged at approximately 9.1% for FY 2007-08
.
Increa ing per capita income upported by increa ed con umption i  re ulting in
a greater-than-proportionate impetu  for telecom growth. A  India till rema
in  94
one of the lowe t penetrated market , it i  one of the mo t attractive
telecom
market  in the world today.
New technologie  and paradigm : The trend toward  adoption of Next
Generation Network  (NGN) i  global and the di cu ion  in India are till
at a
preliminary tage. Technologie  like Triple Play, wherein a ingle cabl
e can
deliver voice, data, video on demand and IPTV provide u  with a uniq
ue
opportunity to an integrated player who i  well po itioned to deliver thi  ervi
ce.
Strong trategic partner hip : Strong trategic alliance  with network companie 
may help Reliance Communication to focu  on marketing it  ervice . Alliance 
provide the ervice provider the acce  to technological know-how a  we
ll a 
be t practice  to enhance cu tomer experience. It i  important to leve
rage the
trength  of our partner  and benefit from their experience and know-how.
Introduction of number portability: Number portability would allow cu tomer 
to retain their telephone number  even after witching ervice provider
 or
network . Companie  with better ervice delivery and cu tomer care platform 
tand to gain over their competitor . Exten ive network coverage, coupled with

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]

14.4. Retail Revolution:-Reliance World


What a wonderful world -- Reliance World
Reliance World (formerly Reliance Web World)
fir t of it  kind a retail tore with telecom product 
and ervice  in India, i  a world-cla  nationwide
chain of retail outlet  for product  and ervice  of
the Reliance – Anil Dhirubhai Ambani Group. It i 
de igned to give the cu tomer a delightful experience of the digital world of in
formation,
communication, entertainment and utility ervice .
All Reliance World outlet  are connected to Reliance’  countrywide optic fibre net
work.
The Broadband Centre at Reliance World leverage  thi 
broadband network to bring you innovative digital ervice .
With 242 Reliance World outlet  acro  105 citie  in the
country 97
14.5. Cu tomer Survey Que tionnaire
Cu tomer Survey: Que tionnaire
Name:
Date:
Name of interviewer:
1. What i  your age?
Le  Than 18
18-23 year 
23-28 year 
28-45 year 
Greater Than 45
2. What i  your occupation?
Government Service
Private Service
Bu ine  Self-Employed
Student
Homemaker
Other  (plea e pecify) __________
3. How often do you get connected to Internet?
At irregular interval 
Once a day
Twice a day 98

4. What type of data card you preferred to buy?


USB Modem
PCMCIA Card

5. From where did you buy your data card?


Company own outlet 
Other place

6. Which brand  of data card you are aware of? (TOM)


Reliance
Tata-Indicom
Vodafone
Airtel
BSNL
7. Which brand  of data card you are aware of (Aided recall)

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.

Purcha e the ame brand from ome other 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

Will be u ing the ame brand

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)

No. Attribute /Benefit  Rating


1. Price
2. Ea y handling
3. Net Speed
4. Signal Strength
5. Availability in tore
6. Tariff plan
7. Offer/Di count 
17.Plea e rate the following brand  on the cale of 1-5 for the attribute  menti
oned
below i.e. write 5 if you feel the attribute i  good enough to fully ati fy you
and
mark 1 if you feel the attribute could not ati fy you.
(1 fully di ati fied to 5 fully ati fied – Show card  with the rating  on them)
No. Attribute  Brand 
1 2 3 4 5
Tata-
Indicom
Airtel Vodafone BSNL Reliance
1. Price
2. Ea y handling
3. Net Speed
4. Signal Strength
5. Availability in
tore

6. Tariff plan 102

Focu  Group Di cu ion Format


Introduction
Pre entation of the Purpo e
Di cu ion of the procedure
Focu  Group Di cu ion (FGD)
We conducted two FGD for our product-Reliance Data card. We al o conducted
Telephonic interview  with exi ting cu tomer from company’  data ba e
Focu  Group 1: PG tudent  from NSHM, Kolkata (Age: 18-24)
Focu  Group 2: Faculty member  NSHM, Kolkata (Full time) (Age: 38-55)
Following are the que tion  that helped u  in moderating the entire di cu ion
and the an wer  that majority in the group agreed to:

1) Type Net connection have been u ed


FG 1: The PG tudent  now u e mo tly USB modem and data card for urfing
FG 2: The faculty member  now u e broadband for urfing
2) What product fir t come  to your mind when I ay Internet connection?
FG 1: The PG tudent  aid Airtel, Reliance data card and BSNL internet connect
ion
FG 2: The Faculty member  mo tly u e BSNL broadband
3) Different type of net connection  you are aware of?
FG 1: Came up with Airtel GPRS connection  and al o Reliance Netconnect
FG 2: Came up with mo tly BSNL and Reliance Netconnect,
103
5) The rea on for u ing data card?
FG 1: Sometime  ju t for peer pre ure and convenient for u ing anywhere
FG 2: Exten ive traveling and ea y acce  to internet
6) Doe  the data card really matter for net urfing?
FG 1: no. only it can be taken anywhere.
FG 2: not really.

8) Have you witched data card’  brand ?


FG 1: ye , once
FG 2: no. not very recently.
9) If o, why?
FG 1: ju t for bad peed
FG 2: only ometime . Better connectivity and charge  of u age
10) Where do you purcha e?
FG 1: Company’  own outlet .
FG 2: Company’  own outlet 
11) Currently which type of net connection do you u e? Are you ati fied?
FG 1: Airtel GPRS, Reliance data card, BSNL broadband connection
FG 2: Reliance data card, BSNL broadband connection
12) Information earch?
FG 1: ad  don’t influence. Deci ion i  made at the point of purcha e
FG 2: ad  don’t influence. Many time  deci ion i  made before coming to tore.
104
14) Have you een an ad for Data card?
FG 1: No, not really. Charge  are not important like net peed a  well a  downlo
ad
peed
FG 2: Ye , did
15) What do you expect from your net connection ? (Speed, free u age etc.)
FG 1: Speed. Dialup connection
FG 2: Good offer , ea y to handle, good coverage
16) The attribute  you look for in your data card?
FG 1: Good net peed, affordable price, Wire le  connectivity
FG 2: Affordable price, Ea e of u e
17) What do you expect from net connection ?
FG 1: Speed
FG 2: Strong network (if USB modem and data card) quick connectivity,
affordability.

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 

22) Why Reliance data card?


FG 1: Good peed, attractive tariff plan , recommended by family and friend 
FG 2: Worth of money, recommended by family and friend 

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

COMMON ATTRIBUTES: Speed, availability in tore , offer /tariff plan ,


106
14.6. Age Profile of Sample Population

14.7. Internet Data Card Preference

14.8. Recall Pattern


Unaided Recall of Reliance Brand 67%
Aided Recall of Reliance Brand 89%
Top of the Mind Recall of Reliance Brand 77%
9%
23%
46%
14%
8%
<18
18-23
23-28
28-45
45>
28%
42%
14%
11% 5%
TATA INDICOM
RELIANCE
AIRTEL
VODAFONE
BSNL 107
14.9. U er Preference

14.10. Re pondent ’ preference of Internet Connection

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

14.13. Fi hbein Analy i 


Fi hbein Attitude Model

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

14.16. Clu ter Analy i 


Two Clu ter Analy i 
Clu ter
1 2
Attribute  4.5 3.9
Price Sen itive 3.7 2.9
Point of
Purcha e
2 1
Additional
factor 
3.1 1.2

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
Reference
• 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
Education Au tralia.
• Daft, Richard L. Organization Theory & De ign. Thom on/ South-
We tern, 2007.
• Ambani, Dhirubhai. Reliance Communication. 1999.
http://www.rcom.co.in/Communication /Aboutu /aboutu _home.html.
• Reliance communication- Timeline
http://www.rcom.co.in/webapp/Communication /rcom/Aboutu /aboutu 
_mile tone .j p
• Product 
http://www.rcom.co.in/webapp/Communication /rcom/index.j p
• ANI. Andhra New . July 16, 2007.
http://www.andhranew .net/Bu ine /2007/July/16-Reliance-Communication-
buy -8239.a p.
• Communication , Reliance. "Code Of Conduct." Reliance Communication .
2006.
http://www.rcom.co.in/Communication /Aboutu /pdf/Code_of_Conduct.pdf.
• http://www.rcom.co.in/webapp/Communication /rcom/Aboutu /aboutu 
_bu ine .j p
• Miller, Chri . SAP NetWeaver Magazine. 2006.
http://www.netweavermagazine.com/archive/Volume_02_(2006)/I ue_02_(Sprin
g)/v2i2a09.cfm.

You might also like