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A STUDY OF CONSUMER BASE FOR RELIANCE MOBILE IN

GWALIOR (M.P.)

A PROJECT REPORT
Submitted to the

SCHOOL OF MANAGEMENT
In partial fulfillment of the Requirements for the award of the degree OF

MASTER OF BUSINESS ADMINISTRATION


BY

Awadhesh Sharma (Reg No.- 35080083)


Under the guidance of

Dr. A. Chandra Mohan


PROFESSOR OF MANAGEMENT

SRM SCHOOL OF MANAGEMENT SRM UNIVERSITY KATTANKULATHUR 603203 MAY 2010

BONAFIDE CERTIFICATE

Certified that this project report titled STUDY OF CONSUMER BASE FOR RELIANCE MOBILE is the bonafide work of Awadhesh Sharma (Reg No.35080083) who carried out research under my supervision. Certified further, that

to the best of my knowledge the work reported herein does not from part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Signature of the Supervisor

Signature Of the HOD

ABSTRACT
Many managers think, marketing as a organizational department whose job is to analyze the market, discern opportunities, formulate marketing strategies, develop specific strategies and tactics, propose a budget and establish a set of control it can be considered as one of the main aim of marketing, but there is a more to marketing.

During this project I felt that market survey would be more beneficial for making decision and developing the marketing strategies and redefining it into a detailed marketing mix and action plan. It involves carrying out plan, evaluating the result and making further improvements.

But management cant turn a blind eye on the implementation part of the action plan. So if management wants to get real benefit from plan then the feedback process should be more transparent and effective.

ACKNOWLEDGEMENT
I owe everything in my life to other. A person single headed can achieve nothing. In my attempt to do the project many people have graciously extend their guidance, advice and criticism to improve our work.

I wish to express my heartful thanks to our Dean Dr.Jayashree Suresh and my project internal guide Dr. A. Chandra Mohan for providing infinite facilities and gave me an opportunity to do this project work to be successful, guidance and valuable suggestions, which made this project, a successful one.

I express my heartful gratitude to RELIANCE COMMUNICATION for providing me the opportunity to undertake this project in their esteemed organization. My gratitude also extends to the staffs of departments whose words of encouragements kept the spirits high throughout the course of my project.

TABLE OF CONTENTS

1.

INTRODUCTION

1-6

2.

METHODOLOGY
Objective of the study Need of the study Scope of the study Limitations Review of literature

7-26

3.

COMPANY PROFILE

27-48

4.

ANALYSIS AND INTERPRETATION

49-67

5.

FINDINGS AND SUGGETIONS

68-70

6.

CONCLUSION

71

QUESTIONNAIRE BIBLIOGRAPHY

INTRODUCTION
The research study is all about to find out Analyze the different factors that affect the buying behavior of mobile user. Once we understand these factors it become easy to make efficient strategy to compete with its competitors and to satisfy its users and find the strength & weakness of company. What is SWOT Analysis? SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity),

SWOT analysis is a general technique which can be applied across diverse functions and activities, but it is particularly appropriate to the early stages of planning for a TIPD visit. Performing SWOT analysis involves generating and recording the strengths, weaknesses, opportunities, and threats relating to a given task. It is customary for the analysis to take account of internal

resources and capabilities (strengths and weaknesses) and factors external to the organization (opportunities and threats).

SWOT analysis can provide: A framework for identifying and analyzing strengths, weaknesses, opportunities and threats.

This checklist is for those carrying out, or participating in, SWOT analysis. It is a simple, popular technique which can be used in preparing or amending plans, in problem solving and decision making. Illustrative diagram of SWOT analysis If SWOT analysis does not start with defining a desired end state or objective, it runs the risk of being useless. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objectivedriven SWOT analysis is SCAN analysis. Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.

Strengths: attributes of the organization those are helpful to achieving the objective. Weaknesses: attributes of the organization those are harmful to achieving the objective.

Opportunities: external conditions those are helpful to achieving the objective. Threats: external conditions that is harmful to achieving the objective.

SWOT analysis can be used for all sorts of decision-making, and the SWOT template enables proactive thinking, rather than relying on habitual or instinctive reactions. The SWOT analysis template is normally presented as a grid, comprising four sections, one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats. The free SWOT template below includes sample questions, whose answers are inserted into the relevant section of the SWOT grid. The questions are examples, or discussion points, and obviously can be altered depending on the subject of the SWOT analysis. Note that many of the SWOT questions are also talking points for other headings - use them as you find most helpful, and make up your own to suit the issue being analyzed. It is important to clearly identify the subject of a SWOT analysis, because a SWOT analysis is a perspective of one thing, be it a company, a product, a proposition, and idea, a method, or option, etc.

Here are some examples of what a SWOT analysis can be used to assess:

a company (its position in the market, commercial viability, etc)

a method of sales distribution a product or brand a business idea a strategic option, such as entering a new market or launching a new product

a opportunity to make an acquisition a potential partnership changing a supplier outsourcing a service, activity or resource an investment opportunity

Strength Low Entry Cost Commission Structure Fast Activation Process Network Connectivity Data GPRS

Weakness Branding Image Distribution problem Limited product portfolio- Only Mobile Lack of Competitive Strength Limited Budget

Threat Opportunity Political destabilization. Preference of GSM over CDMA New Entrants New Specialist Application IT Development Rural Telephony Market Demand New Market, Vertical, Seasonality, Weather Effects Horizontal Competitors` Vulnerabilities

PROBLEM BEING FACED Lack of communication between retailers and distributor Lack of improper distribution channel

Competitors Not regular visit of DSE and Runner All retailers are not aware of new scheme of RCOM Lack of sales promotion and advertisement Retailer doesnt get claim at proper time No visit of TSM or any other person to the retailers shop

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

METHODOLOGY

1.Objective of the study

The objective of my research study is to find out Analyze the different factors that affect the buying behavior of mobile user. Once we understand these factors it become easy to make efficient strategy to compete with its competitors and to satisfy its users.

The study has several objectives. The main objectives of my research study are: 1. To find out & analyze the different factors that effect the buying behavior of mobile users. 2. To make the comparative study of these behavioral factors. 3. To measure the impact of behavioral factors on the purchasing power of user. 4. To know about the users expectations and their graviences. 5. To obtain suggestions from both customers and retailers. 6. To know about the views of customers and retailers about the existing mobile service providers.

7. To help in development and introduction of new product 8. To identify the company position among competitors

9. To determine those factors which persuade retailers for sale of RCOM Sims/product 10. To find out which type of schemes retailers prefer and why? 11. To study the effect of irregular supply on the sale of the product

2.

Need of the study

i. To know the market of reliance communication. ii. To evaluate the customer satisfaction. iii. To determine the factors affecting buying behavior of customers. iv. To gain knowledge in telecom sector.

3. Scope

of the study

The study which is done is very wide and covers many important factors which is included in the study. As we know that telecom sector is one of the emerging and leading sectors in India. It is one of the greatest employment generatation sectors which is giving lot of job opportunity. So it is very hard to discuss the scope of the study as it covers a very large area. Indian Telecom Industry is one of the emerging sector in the world. Though it was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian telecom industry, which has now successfully become one of the largest in the world. India telecom industry largely depends upon the latest and updated technology. It also plays a major role in the economy of the country. It also contributes around 11-12% to the GDP of the country. India telecom industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India telecom industry currently generates employment to more than 35 million people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.

4. Limitation

The main limitation was the small size of Customers & Retailers. It was to small a size to draw a valid & satisfactory conclusion about the universe.

Some Customers & Retailers were not taking it seriously and they did not give real information.

Some customers did not give enough time.

The result cannot be considered as representative of Whole Gwalior.

5. Review of literature Marketing Research

Marketing managers often commission formal marketing studies of specific problems and opportunities. They may request a market survey, a product preference test, a sales forecast by region, or an advertising evaluation.

Marketing research can be define as follows-

Marketing research is a systematic design, collection, analysis, and reporting of data and finding to a specific marketing situation facing the company.

Effective marketing research includes five steps, which should be kept in mind to conduct a marketing research in an absolute manner.

1. Define the problem and research objective. 2. Develop the research plan. 3. Collect the information. 4. Analyze the information. 5. Present the findings.

CHARACTERISTIC OF A GOODMARKETING RESEARCH

1. Scientific Method: Effective marketing research uses the principles of the scientific method: careful observation, formulation of hypothesis, prediction and testing.

2. Research Creative: At its best, marketing research develops innovative ways to solve a problem: a closing company catering to teenagers gave several young man video cameras, other places teens frequent.

3. Multiple Methods: Good marketing researchers shy away from over reliance on anyone method they also recognize the value of using two or 4. three methods to increase confidence in the results.

5. Interdependence of Models and Data: Good marketing researches recognize that, the data are interpreted from underlying modes that guide the type of information sought.

Research methodology

The main objective of research is to find out the truth which is hidden and which has not been discovered. According to advance readers dictionary of current English, the definition of research is A careful investigation or enquiry especially through research for new facts in any branch of knowledge. Still the ideal definition of research is an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, competition, and experiment. Research methodology is a way to solve the research problem systematically. It may also be defined as a science of conductive research. Research methodology has many dimension and research methods constitute a part of it.

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

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

Descriptive Research Primary Data Questionnaires Structured Retailer Judgmental Personal Interview

My research process contents following steps.

1. The first step was to design a structured interview for the retailers and customer. This includes preparing questions for getting required information.

2. The next step was to see which area was to be covered under the survey. Which was assign by Mr. Mahesh Singh Tomar.

3. The next step was to collect the required information.

4. The last step was to analyze the data and present the findings.

Research design

Research design means conceptual framework with which the research has to come in structured manner. The research design has to be prepared with keeping following points in the mind:

1. The means to obtain the information

2. The availability and the skills of the researcher and his staff.

3. The explanation of the way in which selected means will be organize and the reason responsible for their selection.

4. The time factor must be paid attention during the research.

5. The cost factor must also be taken with care. A researcher should first prepare a budget for the project and should move ahead along with the budget.

As we know that reliance is one of the profitable organization in telecom sector and this is because it is effectively and efficiently using its resources which ins in the form of following.

The marketing and market strategy of reliance consists of a set of related actions that managers take to increase their companys performance. For most, if not all, company strategies result in superior performance, it is said to have a competitive advantage.

Managers in reliance can peruse to achieve superior performance and provide their company with a competitive advantage and strategy management is very important.

Strategic leadership is about how to most effectively manage a companys strategy making process to create competitive advantage. The strategy making process is the process by which managers select and then implement a set of strategies that aim to achieve a competitive advantage.

Strategy formulation is the task of selecting strategies, whereas strategy implementation is the task of putting strategies in action, which includes designing, delivering and supporting products, improving the efficiency and effectiveness of the operation, designing a companies structure control system, and culture in strategic management arena we might say that success is 10% inspiration and 90% implementation. A task of selecting a strategy is usually easy but the hard part is putting those strategies into the effect.

Competitive advantage and a companys business modelCompetition is a very rough and tumble process in which very most efficient and effective companies win out. It is a race without win. To maximize share

holder value, managers must formulate and implement the strategies which enable their company to perform rivals- to give a competitive advantage.

Business & market model of relianceA business model is managers conception how the set of strategies their company purses should mesh together into a congruent whole, enabling, the company to gain competitive advantage and achieve superior profitability and profit growth. A business model encompasses the totality of how a company will: Select its customers Define and differentiate its product offerings Create value for its customers Acquire and keep customers Produce good and services Lower cost Deliver those goods and services to the market Organize activities within the company Configure its resources Achieve and sustain a high level of profitability Grow the business over time

Strategy to be implemented before starting of the business research1. Identification of competitors. 2. Research and development should be conducted

3. Product differentiation 4. Achieving the target market.

Important issues for running a research1. Knowledge of the researcher 2. Interest of the researcher

Customer satisfaction

Customer delight

Customer service

Value added service

Market Strategy constantly evolving Changing market condition Moves of competitions New technologies Evolving customer needs & preferences

Political and regulatory change New window of opportunity Fresh ideas to improve the current strategy Crisis situation

Response Factors (consumer behavior)


The response factors deal with consumer behavior under different involvement levels, i.e. the actions or reactions of the consumer due to the antecedents and the involvement properties. As the low involvement good toothpaste is observed, the low-involvement hierarchy could be employed to illustrate the actions of the consumer: First of all, the consumer has certain cognition of the shampoo he or she wants to buy. This cognition may be a result of advertising or some form of learning, e.g. modeling, but the knowledge of the attributes of the shampoo is very small due to a lack of interest. The cognition is followed by the buying behavior. As the consumer has only small knowledge about the shampoo, the decision will be influenced of low price or familiarity of the brand. After the purchase, the buyer will built up an attitude, whether the shampoo meets his needs and requirements, such as care for hairs. But how may attitude influence the level of involvement.

RELIANCE PRODUCT

Reliance Base Phone Reliance Mobile

Reliance Data Card Reliance Voucher, E-Recharge Reliance PCO Reliance Broad Band

STD CALLING CARD

MRP

TALKTI ME

VALIDI Y

ON-NET (NIGHT)

OTHER

RS. 95

84.66

15 DAY

1.25

RS. 115

102.35

15 DAY

1.20

RS. 125

111.25

15 DAY

1.20

RS. 225 RS. 280 RS. 525 RS. 650

200.25 249.20 467.25 578.50

30 DAY 30 DAY 30 DAY 30 DAY

1.10 1.10 RS. 0.40 FREE RS. 1.00 RS. 1.00

PRODUCTS FOR THE MONTH OF JULY 2008 Rs. 55 TOP UPs Rs. 77 Rs. 210 Rs. 310 Rs. 510 Rs. STVs 195 Rs. 496 Rs. 35 Rs. 79 Rs. 49 Rs. 99 Rs. 98 Local on-net mobile unlimited FREE (validity 30 days) Local & STD on-net mobile unlimited FREE (validity 30 days) All STD@ Rs. 1 per minute (validity 30 days) All Local@ Rs. 0.50/min and all STD@ Rs.1/min (valid. 30 days) On-net Local@33PAISE, Off-Net Local@49 Paise (valid. 30 days) On-net Local@33PAISE, Off-Net Local@Paise, all STD@99 Paise (30D) On-net Local FREE between 10PM to 8AM& other local@50 paise (30D) FULL T.T of 55 (off net 43+on net 12) FULL T.T of 77(off net) TALK TIME of Rs. 222 (off net) TALK TIME of Rs. 333 (off net) TALK TIME of Rs. 555 (off net)

RCVs

Rs. 250

FREEDOM TARIFF, TALKTIME Rs. 147.5 AND VALIDITY 30 DAYS

Rs. 888

F.T, TALKTIME RS. 888 AND VALI. OF 8 MONTHS

Rs. UNLIMITED 399

Talk Time 175/ & Local On-net Unlimited FREE ( 30 days)

Rs. 499

Local Reliance Mobile & Reliance Smart Unlimited FREE ( 30 days)

Rs. 533

Talk Time Rs. 399.37 & Local On-net FREE B/W 11pm to 6am, ( 30 D)

ESMS Rs. 49 500 LOCAL SMS FREE & VALIDITY 30 DAYS RELIANCE MOBILE HAND-SET

MOBILE RD LG 3000 RD LG 3500 RD LG 3600 RD LG 6100

CUSTOMER PRICE 1199/1299/1799/2699/-

RETAILAR PRICE 1165/1265/1690/2540/-

INFORMATION REQUIREMENT
Complete Price structure of Rcom, Airtel & Tata indi.offer which includes Sim Processing Fees Discount Offered Schemes offered Service Tax

SOURCES OF INFORMATION
Data collected from the Company Secondary Data Internet Retailers Distributor Sales Executives Other Trainees (Runner)

FIELD WORK
I. II. MARKETING VISITING & SURVEY (04/6/2009 to 09/7/2009) APPROACH FOR NEW RETAIL COUNTER (13/7/2009 to 24/7/2009) TO LAUNCH NEW SCHEME THROUGH THE CANOPY (27/7/2009) to (2/8/2009)

III.

FULL NAME OF SOME KINDS OF SERVICE

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

CDMA Code Dual Module Assessment

COMPANY PROFILE

DHIRUBHAI AMBANIS DREAM

Late Dhirubhai Ambani built Reliance from scratch to be in the reckoning for a place in the Global Fortune 500 list. This achievement is even more significant due to the fact, that the entire growth was achieved in an organic manner and in a span of just 25 years.

Dhirubhai was not just firmly rooted in traditional Indian values, but was also a quintessentially modern man - the man of the new millennium. This was clearly reflected in his passion for mega-sized projects, the most advanced technology and the highest level of productivity. The corporate philosophy he followed was short simple and succinct - "Think big. Think differently. Think fast. Think ahead. Aim for the best". He inspired the Reliance team to do better than the best - not only in India but also in the world. Dhirubhai Ambani, Founder Chairman of the Reliance Group, had an acute sense that education alone empowers people. He was a great communicator. He communicated to inspire, to guide, to educate and to motivate. He employed telephone as a powerful tool to achieve these goals. He used telephone to defeat distance, to compress time and to remain abreast of events. He was acutely aware of the power of information and communications. He would often say: "make the tools of infocomm available to people at an affordable cost, they will overcome the handicaps of illiteracy and lack of mobility". He wanted a telephone call to be cheaper than a post card. This, he believed, would transform every home, empower every Indian, remove the roadblocks to opportunity and demolish the barriers that divide our society.

Dhirubhai Ambani was of the conviction that infocomm would energies enterprises, galvanize governance, make livelihood an enjoyment, learning an experience, and living an excitement. Reliance Infocomm is a fascinating outcome of this powerful conviction. It is a major initiative to translate his inspiring dream into reality. For the India Mobile, Reliance Infocomm, will offer three schemes for consumers. The first introductory offer would be the 'Dhirubhai Ambani Pioneer' offer. Under it, consumers will be given a free digital mobile phone, unlimited free incoming calls, billing at 15-seconds pulse rate, for a one-time fee of Rs 3000 as membership charges and Rs 600 per month as telephony charges. All incoming calls would be free and outgoing calls would be charged at 10 paise for 15 seconds. The cost of a national long-distance call to any Reliance phone in the country would be 40-paise for a minute. In addition, users would get 400-minutes of outgoing calls free. Value added services like voice mail, call waiting, call hold, call divert, call identification, call conferencing, dynamic STD/ISD locking and text messaging would be offered for free

"The pricing system is n line with Dhirubhai Ambani's dream and directive of making phone calls affordable for every Indian. It has been made possible due to the significant capital productivity achieved," said Ambani. Nationwide demonstrations to consumers would begin on January 15 and bookings would start in early February. By the end of March Reliance Infocomm will close bookings for the Pioneer scheme. "The key feature of this scheme is that a Rs 10,500 handset comes free for users and this all facilities offered will be valid for three years," Ambani said. The Pioneer scheme would be a three-year plan. It will be valid only till the end of March. Users can also opt for the 'Regular' scheme, which involves an upfront payment that covers only talk time, and 'Standard' plan that will be a monthly payment plan. Bookings for the Standard and Regular plan will open only after March. Tariff for those plans would be all incoming calls free and Rs 1.20 for three minutes and Rs 200 as rentals. In these schemes, consumers would have to buy their own handsets for which financing options will be made available.

VISION

Reliance Infocomm envisions a digital revolution that will sweep the country and bring about a New Way of Life. A digital way of life for a New India. With mobile devices, netways and broadband systems linked to powerful digital networks, Reliance Infocomm will usher fundamental changes in the social and economic landscape of India. Reliance Infocomm will help men and women connect and communicate with each other. It will enable citizens to reach out to their work place, home and interests, while on the move. It will enable people to work, shop, educate and

entertain themselves round the clock, both in the virtual world and in the physical world. It will make available television programmes, movies and news capsules on demand. It will unfurl new simulated virtual worlds with exhilarating experiences behind the screens of computers and televisions. Users of Reliance Infocomm's full range of services would no longer need audiotapes and CDs to listen to music. Videotapes and DVDs would not be necessary to see movies. Books and CD ROMs would not be needed to get educated. Newspapers and magazines would not be required to keep abreast of events. Vehicles and wallets will become unnecessary for shopping. Reliance Infocomm will disseminate information at a low cost. "Make a telephone call cheaper than a post card". These prophetic words of Dhirubhai Ambani will be a metaphor of profound significance for Reliance Infocomm. Reliance Infocomm will regularly unfold new applications. Continually adapt new digital technologies. Create new customer experiences. Constantly strive to be ahead of the world. Reliance Infocomm will transform thousands of villages and hundreds of towns and cities across the country. Above all, Reliance Infocomm will pave the way to make India a global leader in the knowledge age.

Coverage

PAN India network and town coverage.

60,000 kms of optic fiber backbone that connects over 90% of India's population

Wireless network being rolled out in 600+ cities/towns initially; expanding to the entire landmass of India by 2004

2,588 Base Transceiver Stations (BTSs) across the country, for our wireless network

Network with superior reliability All this managed from our state-of-the-art national network operations centre in Mumbai.

States: Andhra Pradesh Bihar Delhi Gujarat Haryana Himachal Pradesh Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Tamilnadu Uttar Pradesh (East) Uttar Pradesh (West) West Bengal

Anil Ambani: 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 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 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 100,000 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

Reliance Communications' wireless subscriber base grew to over 28 mn last fiscal, registering a 60% growth. This makes it one of the top two wireless operators in India. "Economic growth in the future will be indexed to connectivity of millions of enterprise and individual customers. Over the next few years, we will have over 100 million customers, making us one of the top 5 telecom players in the world. In four years, we put up a total of 14,000 towers across the country. This year alone we will add 23,000 more towers. Our wireless network is currently available in 10,000 towns. By the end of this year, it will be available in over 23,000 towns and 600,000 villages," Anil Ambani said at the first annual general meeting of Reliance Communications since the re-organization of the Reliance Group in June 2005. "In four years of operations, we invested around Rs 32,000 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 900 mn Indians or more than 15% of the global population. It will cover 23,000 towns or every single Indian habitation with a population of over 1,000. Reliance Communications will cover almost 100% of all rail routes, providing seamless voice, video, radio, and Internet connectivity to 14 mn commuters every day. It will also cover almost 100% of all national highways, and 84% of all state highways, giving millions of users the power to talk, text, surf, play, chat or simply stay in touch across nearly the entire length of India's 2,00,000-km-long road network. Having achieved tremendous growth, the main challenge for Reliance Communications is to improve quality of service and ARPU. 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.

AN OVERVIEW OF CURRENT MARKET SCENARIO

Reliance

Communications

(formerly

Reliance

Communications

Ventures) is one of India's largest providers of integrated communications services. The company has more than 20 million customers and serves individual consumers, enterprises, and carriers, providing wireless, 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. 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. 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.

BRIEF STUDY OF THE ORGANIZATION Chairmans profile Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani (1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. It is India's Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources.

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, Shri 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. Shri 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

In June 2004, Shri Ambani was elected as an Independent member of the Rajya Sabha Upper House, Parliament of India, a position he chose to resign voluntarily on March 25, 2006.

Select Awards and Achievements

Voted the Businessman of the Year in a poll conducted by The Times of India TNS, December 2006

Voted the Best role model among business leaders in the biannual Mood of the Nation poll conducted by India Today magazine, August 2006

Conferred the CEO of the Year 2004 in the Platts Global Energy Awards

Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management Association, October 2002

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

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.

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

MANAGER

DUPTY MANAGER

ASST. MANAGER

MANAGEMENT TRAINING

Claim process:In case of RCOMM process is be claimed very belatedly i.e. almost 77% of the cases take 60-90 days, where as in case of Airtel most of the i.e. 88% is being finalized in time limit 0-30 days. The claim process services of other competitors viz. AirCel, Smart, & Tata Indicom are almost at par with the IDEA cellular ltd.

ANALYSIS & INTERPRETATION

RETAILERS ANALYSIS

Q.1. Which Service Providers Connection you provide?

a) b) c) d)

Reliance Idea Airtel All

34% 10% 10% 40%

Q.2. Which Connection do you prefer to sale?

a. b. c.

Reliance Idea Airtel

40% 30% 20%

Q.2. (a)

Reasons for the preferences

a. b. c. d.

Better Margin Customer Demand Product Features Others

30% 34% 26% 10%

Q.3

According to you, which factor affect-buying decision?

a. b. c. d. e.

Price Brand Product Value added services Shop Display

40% 10% 20% 20% 10%

Q.4

How would you evaluate (from 1 to 5) the current providers you work with on the following issues?

Scale 1 2 3 4 5 Very Poor Poor Average Good Very Good

FOR POSM SUPPORT

TRAINING SUPPORT

CLAIM SETTLEMENT

30 25 20 15 10 5 0 Reliance Idea Airtel


1 2 3 4 5

INNOVATION

30 25 20 15 10 5 0 Reliance Idea Airtel


1 2 3 4 5

PROMOTION

35 30 25 20 15 10 5 0 Reliance Idea Airtel


1 2 3 4 5

CUSTOMER ANALYSIS Q.1 Age Group

a. b. c. d.

15-25 Years 25-35 Years 35-45 Years 45 Years and above

40% 51% 7% 2%

Q.2. Occupation

a. b. c. d.

Student Service Business Professional

19% 26% 46% 9%

Q.3

Income Group

a. b. c. d.

Below 20000 20000 to 40000 40000 to 60000 More than 60000 46% 21% 16%

18%

Q.4. While purchasing mobile connection who influence your buying decision.

a. b. c. d. e. f.

Children Wife Parents Yourself Friends Retailers

2% 2% 7% 63% 12% 14%

Q.5. How do you come to know about the reliance product?

a. b. c. d. e. f.

Neighbors Users Friends Newspaper Bill boards Advertisement

2% 38% 6% 35% 2% 17%

2%

38%

6%

35%

2%

17%

Q.6. What features affecting your buying decision?

a. b. c. d. e. f.

Free outgoing calls (foc) Free extra balance (feb) Network quality (nq) Local Call Connectivity (lcc) SMS based Services (sbs) Roaming facility (rf)

15% 8% 20% 22% 4% 6%

g.

Price (Air time) (p)

25%

MARKET SHARE OF MOBILE SUBSCRIBERS

MARKET SHARE OF CDMA IN M.P.

30% 70%
RCOMM TATA indicom

RCOMM 70% TATA INDICOM 30%

MARKET SHARE OF GSM IN M.P.

AirTel RCOMM BSNL Smart Tata Aircel

AIRTEL 35% RCOMM 19% BSNL 18% SMART 17% TATA INDICOM 9% AIRCEL 2%

FINDINGS

Services provided by Retailers: All the retailers are dealing in all services i.e. providing Recharge Voucher, SIM, and Tariff Voucher of all the cellular service companies

present in Jharkhand zone. Also most of them provide only pre-paid connection.

Satisfaction: Most of the retailers i.e. around 74% of respondents are satisfied with RCOMM brand, 10% of them push RCOMM brand to the customer and rest 16% retailers are not satisfied with RCOMM brand due to claim pending and the distributor. The retailers dont get schemes communicated in time by distributor and distributor does not provide RCV & e-Top properly.

Problems: Around 15% of the respondents that there is network problem with RCOMM, on the other hand they found its competitors viz. Airtel, BSNL, TATA indicom network connectivity of very good to good level. Around 16% retailers which are under puja enterprises distributor projected problem with distributors. They dont get schemes

communicated in time by distributor and distributor does not provide RCV & e-Top.

Support from company: Most of the retailers ensnared that they are supported by the companies personnel & companies helpline.

All companies provide POP at right time and in adequate number.

SUGGESTIONS

There is a need of training to the persons who is directly involved in sales force.

To introduce new schemes for the retailers.

To improve the Network Quality.

If a company will introduce free outgoing upto 30 sectors in reliance to reliance its will increase its market share.

To add some other facilities like to know the current position of Bank a/c, information about Railway Time Table.

CONCLUSION

After having gone through the whole process of preparing the work project on the Buying behavior of consumers towards mobile service provider in Gwalior market. I have gained the knowledge of practical things. This was possible only after working in & studying the market. Earlier this project I knew the theoretical knowledge about the buying behavior but after this project I

learned the practically of these factors on the behavior of consumers. Through this project I could understand the great difference among the various class of buyers & they behave differently because there requirements are different. This market research helped me to get a deep insight into the service and marketing strategies of the company.

As far as the competition is concerned Airtel is a new but there is a neckto-neck competition between the Reliance and Idea.

QUESTIONNAIRE

RETAILER QUESTIONNAIRE

Name : ____________________________________________________________

Address : __________________________________________________________

Phone/Mobile :_____________________________________________________

1.

Which service providers connection you provide?

a. Reliance

b. Ic. Airtel

2.

Which card do you prefer to sell

a. Reliance [

b. Idea [

c. Airtel [

Why?

a. Better Margin

b. Customer Demand

c. Product Features

d. Other

3.

According to you which factor affect buying decision?

a. Price

b. Brand

c. Product (Basic Service)

d. Value Added Services

e. Shop Display 4.

How would you evaluate (From 1 to 5) the current providers you work

with on the following issues? Service Provider POSM Support Training Support Claim Settlement Innovation Promotion

Scale=1=Very Poor, 2=Poor, 3=Avg., 4=Good, 5=Very Good.

CUSTOMER QUESTIONNAIRE

Name:

Address:

Phone / Mobile:

1. Age Group

a. 15-25 years [

b. 25-35 years

c. 35-45 years [

d. 45 and above

2. Occupation

a. Student

b. Service

c. Business

d. Others

3. Income Group

a. Below 20000

b. 20000 to 40000

c. 40000 to 60000

d. More than 60000

4. While purchasing mobile connection who influence your buying decision.

a. Children

b. Wife

c. Parents

d. Yourself

e. Friends

f. Retailers.

5. How do you come to know about the reliance product?

a. Neighbors

b. Users

c. Friends

d. Newspapers

e. Billboard

f.

Advertisement.

6. What features affecting your buying decision.

a. Free outgoing calls. b. Free extra balance. c. Network quality. d. Local call connectivity of M.P. and Chhattisgarh. e. SMS based services. f. Roaming facility. g. Price (Airtime)

7.

Reasons behind having mobile?

a. Style / Fashion. b. Job Requirement. c. To remain in contact with others. d. Status Symbol.

BIBLIOGRAPHY

1.

Marketing Management

Philip Kotler

2.

Business World

3.

The times of India

4.

Hindustan Times

5.

Internet

6.

Business Today

Websites
www.rworld.com www.google.com

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