Business Development, SWOT Analysis and Customer Retention activities in existing Potential within a limited territory

In

Project Report Submitted To

Balaji Institute of Modern Management (BIMM), Pune

In

Partial Fulfillment of the PGDM (Marketing & IT) Curriculum For Academic Year 2011-13

By Parth Prakash Gupta (BIMM-8062)

Under the Supervision of

Mr. Tasneem Siddiqui Circle Sales Manager,

Reliance Communication,Pune
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CONTENTS

Organizational Certificate Acknowledgement Preface

Chapter 1

Introduction
Concept of Reliance communication An Overview of current Market Scenario Brief Study of the Organization Organizational Set-up

Chapter 2

Main Studies
Introduction of the Topic The problems being faced What does Company expect to do by solving the problem

Chapter 3

Methodologies

Research problem Research Objective & sub- objective Information Requirement Choice of Research Design Research Instrument used Sampling Technique used & Sample size Field Work

Chapter 4

Data Analysis & Interpretation

Data Interpretation & Finding of customer Survey Market share of mobile subscribers

Chapter 5

Conclusions
Conclusion Finding

Chapter 6

Suggestions
Appendices Bibliography Questionnaire

ACKNOWLEDGEMENT

There are a few things that come in the life of a person, may be for a short span of time, but leaves on ever shining impression in to the mind. My summer training is one of the events which will be ever green in my life. As I have been placed in RELIANCE COMMUNICATION LIMITED at Pune. I shared the real marketing skills and knowledge from their experienced, enthusiastic and cordial executives, without whom I would have not been able to achieve my aim. First of all I would like to express my thanks to Mr. Tasneem Siddiqui (CSM) for permitting me to do the training at his concern. I am also grateful to Mr. Vijay Ranjan (ASM) for sharing valuable experience and suggestions regarding training and preparation of report. I also owe sincere gratitude to my family members whose love, affection, cooperation and moral support have provided me the strength to carry out this project.

Place :PUNE

Parth Prakash Gupta

PREFACE

A project is a scientific and systematic study of real issues on a problem with the application of management concept and skills. The study can deal with small or big issues in any division of an organization. It can be case study where a problem has been dealt with, through the process of management. The essential equipment of a project this that, it should contain scientific collection of data, analysis and interpretation of data leading to valid conclusion. Summer Training is an essential part in PGDBM curriculum. It enables the student to share the real experience in industry. My summer training has placed in Reliance communication limited for the period of Eight weeks in Pune. The topic of my project was Business Development, SWOT Analysis and Sales Promotion of RELIANCE COMMUNICATION in Broadband and Fixed Line Phone at Reliance Circle office,Pune. This project report tends to give a sharp picture of the telecom industry. I hope, this study can be of some help to the telecom industry of his product and service .

CHAPTER - 1

Introduction

Concept of Reliance communication History of Cellular Phone in India An Overview of current Market Scenario Brief Study of the Organization Organizational Set-up

(1) CONCEPT OF RELIANCE COMMUNICATION

My vision is to provide the latest telecommunication facilities to every Indian at the price of a post card Dhirubhai Ambani. Reliance Infocomm was launched as a very ambitious project. The project was conceived at the convergence of communication and information technology. It was designed to connect every home and office in India with each other and the world. On Thursday, August 09, 2007 Anil Ambani has chosen as Telecom person of the year 2007 His marketing strategy has made millions of Indians happy, they got the best mobile tariffs in the world-local call costs at 15 paise/minute, and STD call at 40 paise/minute . NEW DELHI, INDIA: When the VOICE&DATA jury, comprising eminent professionals from the telecom field, met in Delhi in June to choose the Telecom Person of the Year 2007, the five-hour selection process was steamy. The reason was obvious: The telecom sector is growing faster than any other segment and naturally their CEOs have a lot to crow about. The jury had to select one from three CEOs, who had made it to the final list through nominations from the industry and the initial scrutiny. Among the three, one of the main contenders was a young CEO. The jury decided that he should come back next year to try and win the coveted award. The list now had two names-both CEOs of two well-known companies. The pivotal difference between the two: one is an entrepreneur and the other is not so popular, as his credit is shared among a number of his big daddies. Following a five-hour closely held, hotly debated discussion, the name was announced: Anil Dhirubhai Ambani, chairman of Reliance Communications. Anil Ambani joined Reliance Industries (currently promoted by his brother Mukesh Ambani, following their split) in 1983 as co-chief executive officer. Forbes ranked him number 104 among the World's Richest People in 2006. The Ambani family faced criticism when it announced its ambitious plans to build a countrywide telecom
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network, as its prior expertise lay in commodities-textiles and petrochemicalsbusiness only. Apart from that telecom needs a service-oriented mindset, critics felt. What they did not remember was how the family had served its millions of shareholders. Policies in India are made in line with Ambani's vision, says an industry expert. His business acumen and closeness to politicians assisted him in making it to the Rajya Sabha in June 2004, as an independent member. Ambani chose to resign voluntarily on March 25, 2006. The same association with politicos gave him negative returns too when the Mayawati Government in Uttar Pradesh put a spanner on his ambitious plans to build a 1,200-acre SEZ. Media sees his aggression when he announces financial results for the Reliance ADA group of companies, and when he attends the annual general meetings and faces questions from shareholders. When he meets the press, he has answers to all their questions. He also remembers to call select journalists by name. To merchant bankers he, who has already contributed immensely to the financial reforms of the country, is one of the financial wizards of the world. May be because of his expertise, he gave up in the race to grab Hutchison Essar stake, after indirectly jacking up the valuation. His negotiations with the Qualcomm chief are also a folk theory now. How did Ambani become the VOICE & DATA Telecom Person of the Year 2007? What are his personal and organizational achievements in the recent past? His path-breaking marketing strategy that was put in by the strongest team of telecom professionals the country has ever seen has made millions of Indians happy as they got the best mobile tariffs in the world. The aggression resulted to adding to his already swollen kitty. Every hour India will be adding around 20,000 new mobile customers and Reliance Communications over 4,000. When mobile telephony first began in India, a local call cost Rs 16 per minute; an STD Rs 50; and a call to the US Rs 100 per minute. With Reliance Communications pioneering price initiative, a local call now costs a mere 15 paise per minute, STD 40 paise, and a call to the US
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costs less than Rs 2 per minute. The presence of Reliance Communications is making the competition in India panicky. Global telecom forces will also shortly start feeling the heat. Ambani has also recently announced his Rs 1,200 crore buyout of Yipes Holdings. Achiever's Pride

Undertook financial restructuring of Reliance communications To spend Rs 16,000 crore to expand and strengthen network coverage After expansion, Reliance Communications will have the single largest wireless network in the world

Launched the lowest-cost classic brand handset at Rs 777 Subscriber base grew to over 28 mn during last fiscal, registering 60% growth Total Revenue shot up to Rs 14,468 crore, an increase of 34% Net Profit rises to Rs 3,163 crore, an increase of over 600% Revenues of the wireless business increased by 46% to Rs 10,728 crore Broadband achieved revenue growth of 123% to Rs 1,144 crore Market capitalization crossed Rs 110,000 crore Will add 23,000 more towers Telecom services will be available in over 23,000+ towns and 600,000+ villages

Next generation DTH network will be launched before end of the year No. 1 One GSM Network in India according to the Brand equity Survey 2009 Indias Most Trusted Service Brand according to the Brand Equity Survery 2009

Reliance Communications' wireless subscriber base grew to over 28 mn last fiscal, registering a 60% growth. This makes it one of the top five wireless operators in India. "Economic growth in the future will be indexed to connectivity of millions of enterprise and individual customers. Over the next few years, we will have over 100 million customers, making us one of the top 5 telecom players in the world. In four years, we put up a total of 14,000 towers across the country. This year alone we will add 23,000 more towers. Our wireless network is currently available in 10,000 towns. By the end of this year, it will be available in over 23,000 towns and 600,000
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villages," Anil Ambani said at the first annual general meeting of Reliance Communications since the re-organization of the Reliance Group in June 2005. "In four years of operations, we invested around Rs 32,000 crore. This year alone we will invest over Rs 20,000 crore. At the end of this year, we will have covered over 90% of our population. If Version 1.0 of the Indian telecom story was all about affordability, Version 2.0 will be about reach. Our Network expansion will give us the power to drive the market and stay ahead of the curve," Ambani adds. According to Ambani, the financial restructuring of Reliance Communications is the biggest turnaround story in the history of corporate India. The inherited ownership structure of Reliance Communications was complex. The reorganization has yielded a simple, fair, and transparent ownership structure, and given Reliance Communications 100% ownership of all operational and associate companies. Reliance Communications is now among the three most valuable private sector companies in India, and the five most valuable telecom companies in Asia. In the current Fiscal, Reliance Communications will spend Rs 16,000 crore to further expand and strengthen its network coverage across India and the rest of the world. In addition to organic growth, Reliance Communications will leverage the advantages derived from this impressive financial platform to explore and pursue any significant Opportunities available in the telecommunications sector. "We are currently evaluating a number of inorganic opportunities in select international markets to further expand our footprint," Ambani said. Reliance Communications One India, One Tariff plan allowed millions to connect across India at just one rupee a minute. The company was the first one to break the Rs 1,000 entry-barrier with the launch of the lowest-cost classic brand handset at Rs 777. As per its expansion plan, Reliance Communications will have the single largest wireless network in the world, covering over 950 mn Indians or more than 5% of the
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global population. It will cover 23,300 towns or every single Indian habitation with a population of over 1,000. Reliance Communications will cover almost 100% of all rail routes, providing seamless voice, video, radio, and Internet connectivity to 14 mn commuters every day. It will also cover almost 100% of all national highways, and 84% of all state highways, giving millions of users the power to talk, text, surf, play, chat or simply stay in touch across nearly the entire length of India's 2,00,000-kmlong road network. Having achieved tremendous growth, the main challenge for Reliance Communications is to improve quality of service and ARPU. Its enterprise business is also not in a position to compete with the global majors. Stock market valuations may boost the fortunes of an entrepreneur, but Ambani needs to address the issues faced by the growing mobile customer base, especially in India, where bureaucracy takes pride in checking the businessman.

(2) History of Telecom Sector and Industry Milestones in India

1992 Telecommunication sector in India liberalized to bridge the gap through government spending and to provide additional resources for the nations telecom target. Private sector allowed participating. 1993 The Telecom industry gets an annual foreign investment Rs 20.6 million 1994 National Telecom Policy 1994 announced. License for providing cellular mobile services granted by the government of India for Metropolitan cities of Delhi, Mumbai, Kolkata and Chennai. Cellular mobile service to be duopoly (i.e. not more than two cellular mobile operators could be licensed in each telecom circle), under a fixed license free regime for 10 years. 1995 19 more telecom circles get mobile licenses. 1995 (August)Kolkata became the first metro to have a cellular network 1997 Telecom Regulatory Authority of India and AUSPI is setup. 1998 Annual foreign investment in telecom stands at Rs 17,756.4 million

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1999 FDI inflow into telecom sector falls by almost 90% to Rs 2126.7 million 1999 TRAI issues Telecommunication Interconnection (Charges & Revenue Sharing) Regulations, 1999 (March) National Telecom Policy is announced 2000 (June) FDI inflow drops further coming down to Rs 918 million 2000 (Jul) Amendment of TRAI act. 2001 Limited Mobility Service Introduced 2002 Tata Teleservices Ltd acquires Hughes Telecom(I) Ltd providing

basic services in Maharashtra circle. 2002 Reliance Infocomm Ltd launches services across 17 circles on a wide basis in a phased manner 2004 Broadband policy announced. 2006 One Nation-One Rupee tariff plan introduced by Reliance Infocom 2009 USOF subsidy support to BSNL to provide 8,61,459 wire-line Broadband connections to individual users and Government Institutions from 27,789 DSLAMs for a period of 5-years. country

(2) AN OVERVIEW OF CURRENT MARKET SCENARIO To give a boost to the growth of the telecom infrastructure, Government decided the following through NTP 99 Encourage development of telecom facilities in remote and rural areas of the country Achieve teledensity of 7% by 2005 & 15% by 2010. Increase rural teledensity from 0.4% to 4% by 2010. Provide Internet access to all rural headquarters.
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 Provide high speed data to all towns with population more than 2.2 lakhs. Permission to mobile operators to carry their own traffic. The telecom regulatory authority was given more power to administer and monitor progress. Wireless Subscriber base crosses 400 million mark Telephony Subscribers (Wireless and Landline): 290.11 million (Feb 2008) Land Lines: 39.18 million Cell phones: d2450imillion (Feb 2008) Yearly Cell phone Addition: 72 million (2007) Monthly Cell phone Addition: 8.49 million (Feb 2008) Tele density: 25.31% (Feb 2008) Projected Tele density: 500 million, 40% of population by 2010 Broadband subscribers reach 6.40 million mark in March 2009 The number of broadband connections in India have seen a continuous growth since the beginning of 2006. At the end of August 2008, total broadband connections in the country have reached 4.73 million. However the definition of broadband is pretty constrained in India compared to other countries. A 256 kbit/s always on connection is the definition of broadband in India compared to 2 Mbit/s in other countries. However most ISPs ,especially the Government managed companies are now offering speeds up to 16 Mbit/s. BSNL, Sify, MTNL, STPI, Airtel, Netcom, Reliance Communications and Heathway are some of the major ISPs in India. TRAI has defined broadband as 256 kbit/s or higher. However, many ISPs advertise their service as broadband but don't offer the suggested speeds. Broadband in India is more expensive as compared to Western Europe/United Kingdom and United States. After economic liberalization in 1992, many private ISPs have entered the market, many with their own local loop and gateway infrastructures. The telecom services market is regulated by TRAI. ADSL providers include:

Reliance Infocomm Tata Communications Ltd. (VSNL) MTNL/BSNL Bharti Telecom (Airtel, Bharti Televentures)
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Because of the increase in ISPs and the quality of service QoS, It became cheaper to call India from around the world. Many Indians today, studying or living all around the world, are using calling cards to India to speak with their families back home. It used to be much more expensive prior to 2002. Airtel and BSNL have launched 8 Mbit/s & Reliance Communication offers 10 Mb/s broadband internet services in selected areas recently . For home users , the maximum speed for unlimited downloads is 1 Mbit/s , available for USD 60 (roughly , with taxes) Internet Users: 60,000,000 (September 2007) Source: Internet World Stats. Broadband Subscribers: Broadband in India is defined as 256 kbit/s and above by the government regulator. Total subscribers were 2.3 million (April 2007) Source: TRAI Internet Users: Number of Internet users in India is the 4th largest in the world. Though the number of internet users is high, the penetration level is still lower than most countries across the globe. Reliance Communications (formerly Reliance Communications Ventures) is one of India's largest providers of integrated communications services. The company has more than 20 million customers and serves individual consumers, enterprises, and carriers, providing wireless, wireline, long distance, voice, data, and internet communications services through a number of operating subsidiaries. The company sells communications and digital entertainment products and services through its chain of Reliance Web World retail outlets. The company's Reliance Infocomm subsidiary provides wireless communications services throughout India. Reliance Communications is part of the Reliance - Anil Dhirubhai Ambani Group.

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1990
Find out a nice movie and buy a ticket

2000

2009
Real-time guide with nearest cinema & mobile ticketing

Paper guide & telephone

Online guide & online ticket reservation

Sending a hello from vacation

Phone, postcards & pictures

E-mails, attachments, SMS, videos etc.

Video-telephony, Photo messaging via mobile

Gaming Service
Board games Gameboy, Playstation etc. (Interactive) Mobile gaming

The current network expansion undertaken by Reliance is the largest wireless network expansion undertaken by any operator across the world. It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wire line) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services for enterprises as well as individuals, applications, and consulting. Today, Reliance Communications is revolutionizing the way India

communicates and networks, truly bringing about a new way of life. We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India.

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

SWOT Analysis
Strengths: Approx 275 million mobile users as of June 2008 Limited competition from Internet and growing faster than TV
Exponential Growth in Mobile Content with

GPRS penetration to 3 million subscribers.

Growing economy and disposal income. Foreign Direct Investment and players

Weakness: Geographic diversity Cost barriers Expensive to the masses Low penetration as compared to the population, only 10% nationally with metros ranging between 25-35% and rural India is between 10-20%. Internationally operators are way ahead in technology and offerings. Low GPRS penetration. Spectrum Issues Threats: Lack of high-end infrastructure Govt norms and policies are still getting formed. Do not disturb registry. Lack of market understanding Vulnerability to explicit content Mobile TV.- lack of Localized regional content.

Opportunities: 3G and MVNO. Foreign players willingness to collaborate and enter Steep increase in sales of High end phones. Growing youth population. Rich content available through GPRS Packet data costs reduced by MNO (Mobile Network operators). Ad supported content reduces the cost for the end consumer. Explosion of media exposure with wide reach.

(3) BRIEF STUDY OF THE ORGANIZATION

Reliance Communications Limited founded by the late Mr. Dhirubhai H Ambani (1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. It is India's foremost truly integrated telecommunications service provider. With a customer base of over 36 million including close to one million individual overseas retail customers, Reliance Communications ranks among the top ten Asian Telecom companies. Its corporate clientele includes 600 Indian, 250 multinational corporations and over 200 global carriers and owns and operates the world's largest next generation, IP enabled connectivity infrastructure, comprising over 150,000 kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region. For more information, visit:
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Regarded as one of the foremost corporate leaders of contemporary India, Mr. Anil D Ambani, 49, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources. He is also the president of the Dhirubhai Ambani Institute of Information and Communications Technology, Gandhinagar An MBA from the Wharton School of the University of Pennsylvania, Mr. Ambani is credited with pioneering several financial innovations in the Indian capital markets. He spearheaded the countrys first forays into overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Under his chairmanship, the constituent companies of the Reliance ADA group have raised nearly US$ 3 billion from global financial markets in a period of less than 15 months. Mr. Ambani has been associated with a number of prestigious academic institutions in India and abroad. He is currently a member of:

Wharton Board of Overseers, The Wharton School, USA Board of Governors, Indian Institute of Management (IIM), Ahmedabad Board of Governors, Indian Institute of Technology (IIT), Kanpur Executive Board, Indian School of Business (ISB), Hyderabad

Select Awards and Achievements

Voted the Businessman of the Year in a poll conducted by The Times of India TNS, December 2006 Voted the Best role model among business leaders in the biannual Mood of the Nation poll conducted by India Today magazine, August 2006 Conferred the CEO of the Year 2004 in the Platts Global Energy Awards Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management Association, October 2002

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Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001.

Reliance Communications Ltd. reported 4th quarter 2009 earnings of $6.75 per share on 04/30/2009. Reliance Communications Ltd. reported annual 2009 earnings of $27.41 per share on 04/30/2009. Selected by Asiaweek magazine for its list of 'Leaders of the Millennium in Business and Finance' and was introduced as the only 'new hero' in Business and Finance from India, June 1999.

(4)
1. 2. 3. 4. 5. 6.

PRODUCT OFFERED BY RELIANCE INFOCOMMReliance India Mobile Reliance Broadband Reliance Data card and USB modem Reliance India Phone Reliance Data Centre Reliance India cell

We have obtained the No. of Buildings Wired by Reliance Broadband High Speed Internet at the end of each quarter.

March-07: 488,661 June-07: 593,805 Sept-07: 666,368 Dec-07: 727,229 Mar-08: 787,567

However, the average revenue per broadband line has decreased from Rs 1,932 to Rs 1,760. Bharti Airtel had 794,400 broadband subscribers at the end of March-08. The ARPU is at Rs 1,137. Bharti Airtel has been able to maintain the ARPUs, because they upgrade the available broadband speed to the customer and also try to increase the rates modestly. Even if 25% of the customers like me upgrade ourselves, they are able to maintain the bottom line.
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Just, FYI, RCom started with 128 Kbps in Apr-06 at Rs 699 for unlimited data transfer. Today We are on 1 Mbps unlimited data transfer for Rs 2,222. Dramatic increase in broadband speed in the past 2 years :-)

Of the current 2.52 million, Bharti Airtel broadband has 0.63 milllion and Reliance Broadband around 0.7 million. BSNL and Tata indicom/VSNL together are expected to have another 1 million and leaving the rest to other smaller ISPs. We Would say mere 20 million by 2010 is not an ambitious target and India needs to have atleast 50 million broadband subscribers [with speed of atleast 512 Kbps] assuming we will have 500 million phone [Wireless / Wire line] subscribers. The need of the hour is to take aggressive measures as recommended by ASSOCHAM and an action like that of Reliance Communications to provide WiMax broadband in Bangalore and Pune.

TRAI has released the latest figures on Internet and Broadband subscribers in India. At the end of December 2006 there were 2.05 Million Broadband subscribers. Last audit in August 2006 pegged the Broadband subscribers at 1.7 Million. In all India has 8.5 Million internet subscribers. BSNL is the largest ISP with 44.6% market share followed by MTNL at 19.40%. Dial-up users spend mere 3 Hours a Month surfing the web. At the end of quarter ending June-2007, India has mere 2.52 million broadband subscribers [256 Kbps speed, it hasn't changed yet . A QoQ growth of just 8%. If we grow at this pace [8% QoQ growth] then we will have mere 10.06 million by 2010 half way through DoTs Broadband Policy 2004 target of 20 million broadband subscribers by 2010. If the QoQ growth is @ 10% then we will have 14.01 million subscribers by 2010.

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(5) ORGANIZATIONAL SET UP Reliance Communication Limited

CHAIRMAN

PRESIDENT PRESIDENT (PRESONAL (HOME BUSINESS) BUSINESS)

PRESIDENT

(ENTERPRISES

BUSINESS)

SENIOUR V.P

V.P

GM

DGM

AGM

SENIOUR MANAGER
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MANAGER

DUPTY MANAGER

ASST. MANAGER

MANAGEMENT TRAINING

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ONE TIME BOOKING CHARGE RS 500/Reliance Broadband Plan:Monthly Plan Charges(Rs.) Download Speed Bundled Usage (Data Transfer) Additional Usage(Rs.)

400 750 799 999 1399 2199 299 550 750 999 1499

75 Kbps 150 Kbps 300 Kbps 400 Kbps 600 Kbps 1 Mbps 2 Mbps 2 Mbps 2 Mbps 4 Mbps 4 Mbps

Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited 1 GB 2.5 GB 4 GB 4.5 GB 7.5 GB

------------------------0.90p 0.90p 0.90p 0.90p 0.90p

Other Plan: Online Speed Select Plan -> Select your speed while you surf. Night Unlimited Plan -> Unlimited surfing during night hours. Cross Pooling Plan -> Enjoy Data/Voice Services in a Fixed monthly rental. Combo Plan -> Pay rental for one service( Data or Voice ) & use another service on no rental basis. Pay only according to usage for the second service.

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Fixed Landline Phone Tariff Plans:Plan Name Plan 250 Monthly Plan Charge (Rs) Free Calls worth 200 (Rs) Rate per Call Unit*(Rs/pulse) For Reliance to Reliance free within circle additional rental charged ( optional plan) 100 100 50 50 50 50 100 1.20 1.20 1.10 1.00 0.90 0.85 1 300 500 1000 1575 2000 200 250 Plan 350 350 Plan 500 500 1000 Plan 1000 Plan 1500 1500 Plan 2000 2000 ONE INDIA299 299

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CHAPTER - 2

Main Studies Objective Introduction of the Topic The problems being faced What does Company expect to do by solving the problem

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(1)OBJECTIVE :- How to achieve customer retention and increase the

within the limited territory within the existing potential.

Sales

(2)INTRODUCTION OF THE TOPIC:Marketing Strategy Customer Generation - Tapping in to Internal Resources Employee base of more than 50,000 and a shareholder base of about 3.3 million was the best place to start as far as customers Every employee was offered 10 connections at a discounted rate. Dhirubhai Ambani Entrepreneurship Program A New Way to Market. Reliance Infocomm fostered a new breed of entrepreneurs, as channel partners. Aim of enrolling 200,000 individuals who are committed to acquiring new customers and creating a new experience for them. Advertising Educating Masses and Evoking Passions The Reliance mobile brand was branded as India Mobile to cash in on patriotic feelings The main theme of the first campaign built on the vision of Reliance Infocomm in bringing the power of telecommunications to every person This campaign helped to educate people on the importance of telecommunication services. The next set of campaigns talked about the innovative product features which differentiated Reliance Infocomm from its competitors. The advertisements announced that Reliance IndiaMobile was 'Kabhi mobile, kabhi computer' (Sometimes Mobile, Sometimes Computer). In the subsequent campaigns Reliance started riding on movies and cricket as themes. Use of Intensive Media Advertising after launching every new and innovative product.

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 RWorld Reliance Way of Putting the World in Your Hands: Another important marketing strategy that Reliance Infocomm used was product differentiation by mixing data applications with voice. Through RWorld an inbuilt Java enabled data feature of all Reliancephones.

RELIANCE COMMUNICATION LIMITED

Strength Low Price Network Connectivity Flexible plans Cheap VAS Services Reputed Brand Name

Weakness Branding Image Marketing problem Limited reach of wire lines. Slowest Activation Process Limited Promotion Budget for Sales

Opportunity Preference plans IPTV introduction Rural Telephony New Market, Vertical, Horizontal Competitors` Vulnerabilities of Flexible wired

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

competitors

(3) PROBLEM BEING FACED

Competitors Not regular visit of DSEs and DSAs and Runner No Visit of ASM to feasibility study Not Proper Communication of Customers Complaint to the company
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Lack of instant complaint solving due to the lengthy documentation and entertainment of complaint

(4) WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE PROBLEM Customer Satisfaction Customer Retention Increase in Sale Service Excellence Increase in Revenue by Broadband Department

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CHAPTER - 3

METHODOLOGIES

Research problem Research Objective & sub- objective Information Requirement Choice of Research Design Research Instrument used Schemes, Products & Sample size Field Work

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(1) RESEARCH PROBLEM

Collection of Customer Data of other companies Tata Indicom, Airtel & BSNL Sales associates and Sales Executive sometime gives wrong data Limitation of time and money

(2)RESEARCH OBJECTIVE
To Retain the customer and increase the potential within the limited territory To understand the reason of negative churn. To analyze the current perception of RCom with respect to other companies.

(3) SUB OBJECTIVE

To know the demand of Rcom Broadband in as the demand of RCom Broadband declining in the market To help in development and need of new product To identify the company position among competitors To determine those factors which persuade Customers to buy RCOM broadband products. To find out which type of schemes customer prefer and why?

(4) INFORMATION REQUIREMENT

Complete Price structure of Rcom, Airtel & Tata Indicom offer which includes:

Installation and Processing Fees Discount Offered

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Schemes offered Service Tax

(5) SOURCES OF INFORMATION

Data collected from the Company Secondary Data Internet Sales Associates Sales Executives Other Trainees (Runner)

(6) SCHEMES, PRODUCTS

RELIANCE PRODUCT Reliance Broad Band Reliance Fixed Line Phone Reliance Mobile Reliance Data Card Reliance Voucher, E-Recharge Reliance PCO

(7) FIELD WORK

1. Marketing visiting & Survey (10/5/2009 to 10/6/2009)

2.Approach for new customers (10/6/2009 to 20/7/2009)

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MARKETING VISITING & SURVEY 1st June was my first day of summer training in Reliance communication in Pune. I met to Mr. Tasneem Siddiqui sir. He took my interview and selects me for summer training. Then he chose my mentor. Mr. Vijay Ranjan Sir who guides me in summer training. After that I had to do my summer training under in Vijay sir. First day I went to the Existing Customer of RCom whose connection were terminated in recent days. Then I met to the ASM Mr. Vijay Sir and got the all information about the market and knew that how they work and how increase the goodwill of R. Communication. They give the regular information about current scheme & plan. We saw that there were more flexible plans then any other subscriber in compare to the Reliance Communication. Time of visiting to Customers I learnt all those thing how to explain in front of customer about the plan & schemes and main thing I learnt there how to convince for accepting a big budget schemes. We familiarized with some kinds of problems those having been Sales Executive and Sales Associates, in his working day with customers. After finishing all the customers I went again to the main office for reporting my work to Vijay sir. Along with all work we had to also seen those some customers which did not keep Reliance Broadband. The main reason through which they cant keep the above given facilities is that they were not telling their problem with us. For removing these problems, there was only one way that they have to tell us their problem with us through which we can get remove that problem by informing to the operation and maintenance department. Therefore at last I asked the problem and they shared with us their problem. Since I was a junior therefore it was my responsibility to keep all the problems in front of Mr. Vijay sir.

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It was my marketing visiting for the 40 days which was the great experienced work for me. In this period I learnt some kinds of idea for increasing the sale, customer retention and also I got familiarized with those problems which generally come in the market for selling purpose. APPROACH FOR CORPORATE OR INSTITUTIONAL CUSTOMER- I went with Corporate SEs to the Institutions and Corporate office and met to the HR Managers and understand the way that how to convince the corporate customer and how to negotiate with the plan. The plan for corporate customers are flexible and can be decided according to the need of corporate customer and the type of service they needed. Its a good experience for me. APPROACH FOR NEW RETAIL CUSTOMER In the second phase of my training I got the target for 10 new customers in the whole area that comes under in Vijay sir. I achieved my target within 7 days for the 10 customers new approach I moved all around the area which comes under in Mr. Vijay sir. I was having the different kinds of plans and schemes through which I could make the new customers. Area was as follow: Pune-Chinchwad Station, MIDC, Bhosari, Phugewadi. I got my 100% target. It was the good achievement for me and according to Mr. Vijay sir it was the much appreciated work which was done by me.

RESEARCH METHODOLOGY
Research methodology is a way to systematically do the job. It may be understood as a science of studying how research is done scientifically. The most
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desirable approach with regards to the selection of the research methodology depends on the nature of particular work, time and resources available along with the desire level of accuracy. Research Type Data Source Research Instrument Type of Questionnaire Population Date Sample Size Sampling Method Contact Method Descriptive Research Primary Data and Secondary data Questionnaire design and Govt. sources Structured 443 100 Judgmental Personal Interview

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CHAPTER - 4

Data Analysis & Interpretation

Data Interpretation & Finding of customer Survey Market share of mobile subscribers

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(1) DATA INTERPRETATION OF CUSTOMERS SURVEY

Most Influencing factor of consideration while purchasing broad band No. of Respondent brand name flexibility in tariff plan price easy availability after sale service others total 10 40 30 5 10 5 100 % of people 10 40 30 5 10 5 100

Most influencing factor while purchasing broad band

45 40 35 30 25 20 15 10 5 0 brand name %OF People 10 flexibility in tariff plan 40 price 30 easy availability 5 after sale service 10 others 5

Interpretation- As shown in the graph it was found that 40% people gives
most preferred option to flexibility in plans and 30% people are price conscious, 10% people give preference to after sales service and brand name equally.

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Satisfaction level in consumer from RCom services avg. figure Reliance Airtel Tata BSNL Tariff plan 9 7 8 5 price 9 7 8 6 After sales service 5 8 8 6

Tariff plan
10 9 tariff plan satisfaction level 8 7 6 5 4 3 2 1 0 value from 0-10 Reliance 9 Airtel 7 Tata 8 BSNL 5

Interpretation- As shown in the graph it was found that satisfaction level of

customer from Reliance communication towards tariff plan is excellent and then it isn approx. same for airtel and tata indicom in broadband sector. BSNL has the least satisfied customer in terms of tarrif plan.

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Price Satisfaction level graph

10 9 8 7 6 5 4 3 2 1 0 value from 0-10 Reliance 9 Airtel 7 Tata 8 BSNL 6

Interpretation- As shown in the graph it was found that satisfaction level of customer from Reliance communication towards Pricing is excellent and then it is approx. same for Airtel and Tata Indicom in broadband sector. BSNL has the least satisfied customer in terms of pricing. After Sale Service satisfaction level graph
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after sales service satisfaction level

8 7 6 5 4 3 2 1 0 value from 0-10 Reliance 5 Airtel 8 Tata 8 BSNL 6

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Interpretation- As shown in the graph it was found that satisfaction level of customer from Reliance communication towards after sales serice is found worst and then it is approx. same for airtel and tata indicom in broadband sector. BSNL has the moderate satisfied customer in terms of after sales service. Reliance broadband is better than any other company Buyer Behaviour strongly agree agree neutral disagree strongly disagree total no. of respondant 20 38 19 18 5 100 %of people 20 38 19 18 5 100

Reliance broadband is better than any other company

40 35 30 25 20 15 10 5 0 strongly agree %of people 20 agree 38 neutral 19 disagree 18 strongly disagree 5

Interpretation It is found that Buyer readiness state for Reliance Broadband in which 20% people are strongly agree with reliance broadband and 38% people are agree and 19% people are neutral. 18% people are disagree and 5% people are strongly disagree.

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Problem most suffered by Rcom Customer no.of respondant

Service level Claim level

Product availability Product awareness

40 15 20 25

%of people 40 15 20 25

Problem most suffered by RCom Customer

45 40 35 30 25 20 15 10 5 0 Service level % of people 40 Claim level 15 Product availability 20 Product awareness 25

Interpretation- The most irritating problem is the poor service level between customers. 40% customers out of 100 sample data are not satisfied with service. Then 25% customers are not able to use current new schemes because of the unawreness about the new products. 20% customer dont take or retract service because of feasibility problem and 15% people are annoyed from claim process.

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Chapter - 5

Conclusions

Conclusion Finding Problems

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Conclusion

Indian economy is an emerging one and is growing very fast at the average GDP rate 6-8% so in this emerging market competition level among

telecommunication services provides new players are coming who will necessarily intensify the competition. New products and new schemes are being offered by the telecom service providers. The need for large information capacity has grown tremendously due to the demand of real time information. Telecommunication has now become a major information transmission system and telecom has undoubtedly emerged as the most important industry in India. Indian telecom companies are putting in their best offer to rope in major telecom operators of the world e.g. Vodafone, Aircel and MTNL, Virgin etc. are playing their role in synergy with the operation of the Indian companies. Process of acquisition and merger are in process and future will be only for those companies who have an edge over others in the field. The better quality of service etc. is provided at affordable cost. In this process of competition it is assumed that only those companies will survive who adopt suitable market strategy and technology innovation and up gradation to suit the aspiration and demand of the consumer.

Reliance Netlink Pvt. Ltd. An Anil Ambani Group is very fast catching up with the market by providing cheaper tariff rates. The market strategies adopted by its executives are bearing fruits and the company has found a suitable niche and recognition in the consumer. But this is not a thing for self contentment as the survey reveals that in network, service and distributor, its place is very far behind to other competitors viz. Airtel, BSNL, and Tata indicom etc. so to withstand the competition resources mobilization and technological innovation on the part of cos. To upgrade its quality of network and services is urgently called for. Market access and growth is alright but the improvement of quality on the above counts is necessity of the time.

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Trainee(my) findingServices provided by SEs and SAs: -

Satisfaction: Most of the Corporate customers i.e. around 56% of respondents are satisfied with RComm Broadbrand, 20% of them push RCOMM brand to the customer and rest 24% retailers are not satisfied with RComm brand due to claim pending and the bandwidth problem. The corporate customers complaint dont get entertained in time by company as easily as possible properly. Most of the Retail customers i.e. around 50% are dissatisfied with RCom Broadband services , around 35% are partially satisfied with RCom Services and rest shows the averse behavior towards the RCom brand and it is of 15% in terms of percentage.

Problems: Around 25% of the respondents that there is Bandwidth problem with RCom, on the other hand they found its competitors viz. Airtel, BSNL, TATA indicom network connectivity of very good level. Around 40% customers found that RCom first bill of broadband is not comprehensive to them and they are charging more. But actually it is due to the not customer or intituitional customer dont pay bill and RCom lose the customer. Many customers around 50% are get frustrated by its first installation time. The installation time for Broadband is quite high and its pathetic in comparison to the other subscribers. proper

communication of payment details and proper mentioning of bills. Hence the retail

Support from company: Most of the customer says that they are not supported by the companies personnel & companies helpline. All companies provide POP at right time and in adequate number.

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But actually customer said that the Company Personnel doesnt communicate the Customer care numbers as well as the relevant authority whom they can cater their complaint. Hence customer become frustrated with their problem. Sales Promotion budgetReliance Communication believes in aggressive selling but it does not look for sales promotion and sales executives motivation. Hence the frontline management should be motivated by giving attractive incentive and bonus. It is existing nowadays also but it is not lucrative.

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Chapter 6

Suggestions
Appendices Bibliography Questionnaire

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SUGGESTIONS

On the basis of extensive study and research, here are some recommendation and suggestion which may help the company to market the product and service more profitability and increase its share in the Telecom market.

- Problem handling should be made easy for the customers as the procedure of
handling problem is very lengthy. Hence, customer care should direct forward the complaint to the maintainance department and get sort out the problem.

- Customer should be recalled after confirmation of maintainace department

that the problem has been resolved or not.

- Sales executives and Sales associates should be motivated perpetually to

increase the sales and they should have been given the particular prospects to create customers.

- Sales promotion activites for big organization say industries should be opted
for selling broadband and fixed line phones at an attractive prices.

- As the demand for reliance broadband is good hence company should go for
service excellence otherwise competitor will catch up the customers by service issue of RComm. Hence Customer will shift to other subscribers.

- I have analyzed that the customer complaint is not entertained as they desires
hence customer should be cater and confirmed by telecalling about the problem and satisfaction.

(1) Promotional Activities

The company expand the budget allocation for promotional campaign for sales executives and sales associates because these are the people are actually responsible for actual sales and revenue. It has affected the sale service brand image of Reliance especially in Pune. Low supports in promotion have lead to

fluctuation in sale. As Pune and other metro cities requires more money for survival at lower management level. Hence hike in salary or some motivational incentives should be given to SEs and SAs.
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(2)Advertising
Advertising should have a clear objective and message, which has not been found in recent ads. Reliance is a faster growing provider service in each state .every offers and schemes they should show with proper message for benefit to the customer. In busy life customer do not remembered any offers and which service we can provided for the customer therefore they should by force showing advertisement in growing market and among customer .customers wants continuously exposure in Cable and Local newspapers.

(3) Persuasive Advertising :-

Now there is a need of persuasive advertising for Reliance service which can be moved into the category of comparative advertising. It will help the company to establish the superiority of its brand service through specific comparison of one or more attributes and features.

(4)Technical Expertise:The advertisement should show the companies expertise, experience and pride in market the product service sale.

(5) Media :A combination of print ads and TV commercial do a better job. Local ads and publicity should be giving more stress. Hoardings, banners, wall painting should be promoted. Ads on Cable network result greater audience attention. Schemes, gift offers etc. must be highlighted through Radio and Local newspapers. aircel are the best user of Media Services. BSNL and

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(6) Sales Promotion Cash discount Premiums Appointment of sale promoter Financial schemes

(7)Occasional Discount The company may go for occasional discount offers or price off from time to time specially during any festival. Off season discount may also prove helpful to check fluctuating sales.

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BIBLIOGRAPHY

BOOKS Marketing Management Marketing Research Phillip Kotler Tull & Hawkins

MAGAZINE

Business Today Advertising & Management

NEWSPAPERS

Economic Times Hindustan Times

WEBSITE www.COAI .in www.trai.co.in www.AUSPI .in The relevant information from the internal source of the organization.

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Questionnaire

1. Most Influencing factor of consideration while purchasing broad band? brand name flexibility in tariff plan easy availability after sale service others

2. Can You evaluate Brand on the Basis of Best Flexible Tariff Plan? Airtel Reliance Tata BSNL

3. Can You evaluate Brand on the Basis of Best Pricing? TATA Airtel Reliance BSNL

4. Can You evaluate Brand on the Basis of Best After Sales Service? TATA Reliance Airtel BSNL

4. What is the nature of problem you face with the Most with RCom? Service level Claim level Product availability Product awareness
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5. Is the Reliance Broadband better than any other company? Strongly Agree Agreee Neither Agree Nor Disagree Disagree Strongly Disagree

6. Are you aware about new scheme of RCom? Yes No

7. If no, why are you not aware about scheme ? Because of Inadequate advertising Communication from SAs Unawareness about new products Other Reason_________.

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