Professional Documents
Culture Documents
BONAFIDE CERTIFICATE
This is to certify that Mr. Kundan Sharma studying in third semester Of Post Graduate Diploma in Management (PGDM) Approved by All India Council of Technical Education (AICTE) is a Bonafide student of Sinhgad Business School Pune.
Date Place
DECLARATION
I the student of Sinhgad Business School, Pune hereby declare that all the information that has been collected, analyzed provided for the purpose of the project is entirely true and factual. I would also like to mention that it is genuine work by me and has not been submitted to any another university or published at any time before. The information presented in the report is accurate and updated to the best of my knowledge.
GUIDES CERTIFICATE
This is to certify that the Project Report entitled Consumer buying behaviour about products of Reliance communications which is being submitted herewith for the award of the PGDM (AICTE) session 2008-2010 is the result of the original Project work completed by Kundan Sharma under my supervision and guidance and to the best of my knowledge and belief the work embodied in this Project Report has not formed earlier the basis for the award of any degree or similar title of this or any other University or examining body.
ACKNOWLEDGEMENT At the start, I would like to express my sincere gratitude to MR. SUNIL PATIL my
project guide from SINHGAD BUSINESS SCHOOL, PUNE for successful completion of a project in partial fulfillment of PGDM (AICTE) under his able guidance to allow me to work on such an interesting subject. He provided me proper and correct direction for completion of project work. His continuous guidance during the course of project helped me in channelizing my efforts, quite appropriately. I am also thankful to Mr. SANDEEP GUPTA, RELIANCE COMMUNICATIONS, for guidance given and cooperation extended for carrying out the project. I am also thankful to all the respondents and friends who have helped me to conclude the contents of the project in decent and presentable manner.
APPROVAL CERTIFICATE
The Project Report of Mr. Kundan Sharma Consumer buying behaviour about products of reliance communications is approved and is acceptable in quality and form.
Internal examiner
External examiner
Signature:
Signature:
Name:
Name:
CONTENTS
Sr. No.
Page No.
CHAPTER NO. 1 1. 2. 3. 4. 5. 6. Introduction- Executive Summary Objectives of the project Scope of the study CHAPTER NO. 2 Profile of the company About the products SWOT Analysis CHAPTER NO. 3 7. 8. 9. 10. Introduction Method of data collection Research Methodology CHAPTER NO. 4 Data collection, Analysis &Interpretation CHAPTER NO. 5 Findings , Recommendation Conclusion Questionnaire Bibliography 31 32 36 15 26 27 9 11 11
38 to50
52 to53 54 55 58
CHAPTER 1: INTRODUCTION
EXECUTIVE SUMMARY
These days organizations are looking forward to obtain competitive edge over their competitors through highly developed employee skills, distinctive organizational cultures, management processes and systems which are in contrast to traditional emphasis on transferable resources such as equipment that can be purchased any time by the competitors. The project CONSUMER BUYING BEHAVIOUR ABOUT PRODUCTS OF RELIANCE
COMMUNICATIONS analysis the future market and assists in understanding upcoming
competition specifies about the future numbers, characteristics, and trends in markets of Pune region and trying to analyze the factors affecting customer expectations. The main aim of this project is to find out the Consumer Buying Behaviour about Products of Reliance Communications which includes net-connection in the market of PUNE. The research will also help to understand about the various viewpoints of the customers by which the company can easily make out where it is exactly lagging behind vis--vis customer expectations. The research process chosen is Descriptive Research, Stratified Convenient Sampling. The survey method is used wherein Structured Questionnaire, Personal Interview, Tele calling and data collection has been used as a research instrument. After analyzing the data, it was observed that, though there is some strength, still there are areas which the company needs to improve upon. A sample size of about 100 customers were taken for this study which included corporate sectors as well as household customers from various parts of Pune region. After the survey was completed, the data was first sorted and then analyzed on the
9
chosen parameters. This analyzed data was later converted into graphs such as pie charts, bar graphs, etc. This was done to make results easily comprehensible by anyone going through the report. This also made it easy to draw out the conclusions and provide a presentable format of the report.
Network Coverage and pulse rate are major factor considered by the
customer while taking the connections. Schemes, roaming facility are also taken into consideration by the customer while deciding about the service provider. Most of the respondents opined that customer care service of Reliance Communications is not satisfactory. They take more time to solve the customers queries.
10
2. To find out the consumer buying behaviour for Reliance net connect. 3. To find out the satisfaction level of the customer.
The need of the project arouse to study the consumers preference and buying behaviour for Reliance Net Connect and whatever customer is satisfied with the product and Services i.e, price, speed, Give a more usage etc. offered to them and also find out the awareness level for Reliance Net Connect.
11
Telephone service was introduced in India Indian Telephone Services were merged with postal system Indian Radio Telegraph Company was formed All foreign telecommunication company nationalized to form Posts, Telephone and Telegraph
Nationalization of Telephone Company Department of Telecommunications (DOT) was established Government owned companies: Videsh Sanchar Nigam Limited (VSNL) and Mahanagar Sanchar Nigam Limited (MTNL)
1991 1994
Sept. 94 Nov. 94
Guidelines for private sector participation in basic service Cellular licenses issued for metros
12
Dec. 94
Jan. 95
VSNL launches internet services Telecom Regulatory Authority of India (TRAI) was created Internet policy announced Telephone policy was formed and Cellular services were introduced
July 99
14
The Reliance Anil Dhirubhai Ambani Group is among Indias top three private sector business houses on all major financial parameters. Across different companies, the group has a customer base of over 100 million, the largest in India, and a shareholder base of over 12 million, among the largest in the world. Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It has a business presence that extends to over 4,500 towns and 300,000 villages in India and 5 continents across the world. The interests of the Group range from communications (Reliance Communications Ltd) and financial services (Reliance Capital Ltd) to generation, transmission and distribution of power (Reliance Energy) infrastructure and entertainment.
15
greater priority than the retention, growth and well-being of our vast pool of human talent.
Consumer Focus We rethink every business process, product and service from the standpoint
as small everyday tasks. If something is worth doing, it is worth doing well. Team Work
The whole is greater than the sum of its parts; in our rapidly-changing
knowledge economy, organizations can prosper only by mobilizing diverse competencies, skill sets and expertise; by imbibing the spirit of thinking together -- integration is the rule, escalation is an exception.
Leadership by Empowerment
We believe leadership in the new economy is about consensus building,
about giving up control; about enabling and empowering people down the line to take decisions in their areas of operation and competence.
16
Social Responsibility
We believe that organizations, like individuals, depend on the support of
the community for their survival and sustenance, and must repay this generosity in the best way they can. Respect for Competition
We respect competition because theres more than one way of doing
things right. We can learn as much from the success of others as from our own failures.
VISION 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.
17
India is one of the fastest growing telecom markets in the world with an addition of more than 15 million connections per month. FDI inflow in Indian Telecom sector is the highest among all sectors. It is emerging as telecom manufacturing hub. The telecom industry is one of the fastest growing industries in India. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. Telecommunication sector in India can be divided into Fixed Service Provider and Cellular Services and Net connect. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services.
Restraints
Lack of infrastructure in semi-rural and rural areas, which makes it difficult to make inroads into this market segment as service providers have to incur a huge initial fixed cost. Limited spectrum availability.
18
The telecom industry is growing at a great pace and the growth rate is expected to double with every passing year. There are many new developments in the telecomm sector, including the ingress of 3G technology that the Indian market is witnessing at present. In this sector whereas Airtel, Idea, Vodafone, Tata, Reliance, BSNL and Other are the leading Players in the country.
19
faster. It offers 3 Mbps speed for downloading, which is very high as compared to that of the 2G technology. The 3G technology provides for internet surfing, downloading, e-mail attachment downloading, audio-video conferencing, fax services and many other broadband applications. 3G Technology was implemented in Japan for the first time in the world. Today the technology is serving 25 countries over more than 60 networks having its existence in Asia, Europe and USA. Video conferencing has been a major factor in the success of the technology.
Business Preview
Reliance Communications Ltd. is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is Indias leading integrated telecommunication company with over 55 million customers. The business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the joyous occasion of the Dhirubhai Ambanis 70th birthday, was among the initial initiatives of Reliance Communications. It marked the auspicious beginning of Dhirubhais dream of ushering in a digital revolution in India. Today, I can proudly claim that we were instrumental in harnessing the true power of information and communication, by bestowing it in the hands of the common man at affordable rates.
21
Reliance Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among Indias top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Energy Ltd). Reliance ADA Groups flagship company, Reliance Communications, is India largest private sector information and Communications Company, with over 55 million subscribers.
22
scratch and, in a short span of 25 years, catapulted it to become on of the top Fortune 500 corporations of the world an achievement unparalleled in history. His corporate philosophy was short, simple and incredibly effective: Think big. Think different. Think fast. Think ahead. Aim for the best. He would always say that if a telephone call could be made cheaper than a postcard, it would transform every home, empower every Indian, remove every obstacle to opportunity and growth, and tear apart every barrier that divides Indian society. He was convinced that infocomm could energize enterprises, drive governance, and render learning an interesting experience, apart from making life exciting. True to his conviction, Reliance Communications Ltd is committed to transform Dhirubhais dream into a reality.
to rise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.
Board of Directors
Mr. Anil D. Ambani Chairman Prof. J Ramachandran Mr. S.P. Talwar Mr. Deepak Shourie Mr. A.K. Purwar
ORGANIZATIONAL STRUCTURE
24
CHAIRMAN
VICE PRESIDENT
GENERAL MANAGER
SENIOR MANAGER
MANAGER
DEPUTY MANAGER
ASST.MANAGER
MANAGEMENT TRAINING
25
26
SWOT ANALYSIS
According to data collection in the research, the following are information and analysis has been done. Reliance communication is doing well in CDMA part of telecommunication, as it was the first company to launch CDMA phones in market. Broadband service provided by Reliance communication was excellent as compared to other operators existing in the market. Reliance wireless phone service has achieved a good appreciation in the market, In present market the basic requirement desired by the telecommunication consumers, after sale service should be highly taken into consideration, as most of the corporate working being done by telephone conversation and internet. In the research it has been analyzed that the decision maker in choosing a particular telecom operator and broadband operator for the corporate generally done by the purchased and personal dept. In some cases the managing director or the owner of the firm is
STRENGTHS
1. Marketing 1. Strong brand image of Reliance. 2. Excellent market coverage. 3. High quantity and reliability of products. 2. Production 1. Speed of implementation. 2. First launch CDMA mobile service in India.
3. 4.
27
3. Finance 1. Availability and ability to raise capital. 2. Financial stability. 3. Ability to generate cash from its mother business. 4. Organizational 1. Ability to set up large scale projects. 2. Ability to build heavy convergence infrastructure.
3. Visionary, capable, leadership.
5. Culture 1. Vision oriented culture based on shared values Reliance is well known for its work culture.
2. Principal of fair representation and full disclosure in all its dealing.
WEAKNESS
1. Globally, full service plan has not worked. It has covered only few cities.
2. Reliance communication in very weak in its after sale services part. It takes very less care of its customer as compared to other operators.
3. Complaints handling part is very weak. Customer complaints are not being taken
care of sincerely due to which customers are shifting to other operators. 4. Flexibility in schemes are not very good as other operators such as separate STD card facilities, it becomes very late as it is already available in the market.
OPPORTUNITIES
28
1. Opening up of the telecom sector. 2. Growth oriented consumer market in the telecom sector; Indias telecom market is expected to grow from $9 billion to $15 billion due to regulation and increasing demand of telecommunication.
3.
India is becoming the most important activity center in off share software development industries launch of 3G services and net based services.
4. India is the latest growing market for the last couple of years
THREATS
1. Regional players are strong in their own territory, E.g. Aircel in Maharashtra. 2. There is a market pressure from specialized smaller players providing last-mile
services.
29
CHAPTER 3: RESEARCH METHODOLOGY Introduction Method of Data Collection Research Methodology The Research Objective Research Limitations
30
INTRODUCTION
Research Methodology in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. The Advance Learners Dictionary of current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research Methodology is a systematic approach of identifying the problem, collecting information , analyzing the information and providing alternative solutions. It is a tool to measure characteristic of the information of the market to obtain the information needed for forecasting and evaluation new product and services and the management in better decision making.
31
Analysis of information
Research Design: Research design is needed because it facilitates the smooth sailing of the various research operations there by making research as efficient as possible and yielding
32
maximum information with minimum expenditure of efforts, time and money. Research design is generally classified as:1. Descriptive Research Design 2. Exploratory Research Design
3. Experimental research design In case of this project the main aim was to find out the feasibility of Reliance Products in the current market scenario. The main aspect of the project was to predict about annual unit-wise sales of Reliance Products. In order to facilitate this, we have selected Descriptive Research. The instrument used for research purpose is questionnaire method.
Sampling Design
Population In statistical usages, term population is applied to any finite or infinite collection of individuals. For this project the samples taken included respondents who were existing Reliance Net Subscribers.
Sample Selection:
33
Sample selection is mainly divided under two types: Probable Non Probable For research purpose, the sampling technique selected is Probable Sampling. The population for the project was large; it was not possible to meet every one so researcher select convenience sampling method from Probable sampling method. During the two months of research, the area covered is from various parts of Pune city.
Sample Size Considering the coverage of research, the sample size taken was of 100 and was bifurcated into various parts of business organizations and individual respondents. After research problem in marketing has been identified, the next step is to gather the requisite data. These data are of two types: 1. PRIMARY DATA 2. SECONDARY DATA
34
1. PRIMARY DATA
Those data which are collected at first hand either by the researcher or by someone else especially for the purpose of study are classified in three ways: i. ii. iii. Observation Methods Questionnaire Method Interview Method
2. SECONDARY DATA
Any Data which has been gathered earlier some other purpose are secondary data in the hands of marketing researcher. Data collected through secondary data is analyzed using techniques and association test.
RESEARCH METHODOLOGY
The research conducted was the Primary Research wherein a survey will be conducted with consumers. The interview will be personal interview and questionnaires will be used to collect relevant data.
35
Research Design Sampling Technique Sources of Data Sample Size Area of Research
Reliance communications.
To identify the potential customers for Net Connect of Reliance communications. To check their awareness about the Net Connect. To check the market communications efficiency of Net Connect of Reliance
communications.
36
RESEARCH LIMITATIONS
The barriers which have confined our market research to considerable points are as the following: Instead of surveying the general mass. I had to confine my survey among the customers and corporate because of less awareness of the common people regarding the particulars. Sometime the non-cooperation of the customer and corporate and unwillingness to answer the questions has created a barrier. At the same time is should be mentioned that the research would not have completed without sincere help of some sensible respondents. The time limit was insufficient which has restricted the survey to 100 respondents.
37
Below 20 8
21-30 50
31-40 30
41 & Above 12
38
Interpretation: From the above table and graph we understand the ratio of subscribers who are using the network services in more proportion. And also we come to know about the age group people who would welcome the HSD product.
Student 22
Businessman 14
Employee 43
Professional 13
Others 8
39
Interpretation: Above interpretaton shows the ratio according to their occupation who are using the reliance Net connect as their service provider. From graph we can see that maximum number of users are the employees who are using connection and second largest category is of student.
3.
40
Interpretation: Above graph shows that maximum percentage of people using the internet that is mainly for surfing, where as there is only Minimum 20% of people do not using this
Always 22
Regularly 14
Often 43
Rarely 13
Never 8
41
Interpretation: From above interpretation we can conclude that there is very less percentage of customers who are using internet 14% Regularly and satisfied by the service provided to them by their service provider and 22% Always using internet , 43% Often , 13%Rarely and 8% Never use internet service .
42
INTERPRETATION:
From the above table and graph it was found that out of 100 respondents most of the respondents were using Airtel and Reliance connections. BSNL and Tata indicom were the 3rd and 4th most preferred service providers.
43
Interpretation: From above interpretation we can conclude that there is very less percentage of customers who are satisfied by the service provided to them by their service provider and are willing to go for change if they get expected services with reasonable price.
44
Interpretation: Above graph shows the awareness ratio of person for internet available in India with such great features and that too of high speed data cards. Form this we come to about the portion of market we can tap in coming days for HSDC product by creating more awareness among the consumer.
45
Interpretation: Above interpretation shows the customer who are ready to purchase the HSDC of reliance. Above graph shows that out of 100 customers 10 had immediate response of purchase where as 10 were not at all interested.
Very Good
25
Competent
40
Very Poor
20
Worst
5
46
Interpretation: From above graph we see that customer satisfaction in the reliance user is increasing day by day . thus brand image of reliance is increasing and are ready to accept the new HSD card with high speed than any another available data cards.
100-250 18
250-500 33
500-750 29
750-1000 13
1000 above 7
47
Interpretation: The graph shows willingness of customer ready to spend amount on the internet usage monthly as per their requirement. The graph shows that 33 people were ready to spend 250-500 Rs For internet usage monthly.
Reliance 2
Tata 4
BSNL 5
Idea 1
Airtel 3
48
5 4 1 3 3
3 3 5 5 4
4 5 4 4 5
1 1 2 1 1
2 2 3 2 2
Interpretation: Above graph shows the rating given by the customer to various available internet service provider who are the competetors of reliance in terms of data card in the market. From above graph we can see that customer are satisfied from the reliance communiations in terms of speed, network and connectivity. Thus from above we see that major competetor of reliance in terms of speed,network and connectivity is TATA
49
and BSNL. Thus customer are reliable on reliance for every aspect of service provider must have.
50
FINDINGS
While this survey was carried out a number of responses were available by the individual & corporate consumers regarding how they would like to see RELIANCE as a service provider. Some of the key responses taken out are: According to the survey the subscribers moreover prefer Net connections in comparison with other company connection
Most of the subscribers likely to have net connection from Reliance. In context to Reliance Net Connect is the leader in comparison with other service
provider in technology.
From the sample size of business organization most of the Employee prefer
Reliance products. According to the survey, we came to know that few organizations were such that they do not have any policy regarding inter group connections with any service providers. According to the research done, it was been observed that there was lots of awareness of the USB Modem and Data card
51
RECOMMENDATIONS
RELIANCE internet service usage were found to be better in service sector. The
company should give more emphasis on its post-paid system for the customers.
Special schemes on HSDC and low rates than other service providers for
individual & corporate customers would be helpful in increasing its sales and market share. Company can lower the customer turnover by giving emphasis on the satisfaction level.
Value added services such as Internet using service it also increasing and give a
more facility etc. will help the company to increase the no. of users.
RELIANCE should increase the number of employees for the purpose of customer
satisfaction.
RELIANCE should improve its internet wireless device network and also improve
52
CONCLUSION
My experience at Reliance communication is that it provided me with ample opportunities to accomplish my marketing skills. As Reliance communication has set up a very large and hi-tech infrastructure so it enhanced my marketing skills with technical approach. Reliance communication provides a training which helps in dealing with different type of customer at various levels. When Reliance stepped down into the telecom sector it grabbed the market very frequently as it has competition with the player BSNL and AIRTEL. The graph also shows that Reliance is coming on top, means that customer are satisfying with product of Reliance. By this process RELIANCE COMMUNICATIONS has provides a platform to sharpen my skill and knowledge and the customer interaction everyday it learns to continue learner, never and of learning.
53
QUESTIONNAIRE
1. What is your age?
a) Below 20 b) 2130 years c) 31-40 years d) 41& above
a) Yes b) No
b) After sometime
C) May be
d) Never
55
9. How do you rate Reliance Net connect in terms of customer satisfaction? a) Excellent
b) c) d) e) Very Good Competent Very Poor Worst
a) 100 250 b) 250 500 c) 500 750 d) 750 1000 e) 1000 above
Reliance
Tata
BSNL
Idea
Airtel
2 5
4 3
5 4
1 1
3 2
56
4 1 3 3
3 5 5 4
5 4 4 5
1 2 1 1
2 3 2 2
BIBLIOGRAPHY
Business Today
NEWSPAPERS:-
57
58