Escolar Documentos
Profissional Documentos
Cultura Documentos
Brief
On
Study
Submitted
by:
GAURAV GUPTA
Enroll. No.
5310700343
Reg. No. 531M8075F00198
MBA (FINANCE &
RETAIL)
Session: 2007-2009
CERTIFICATE
This is to certify that Mr. Gaurav Gupta bearing university
Regd. No. 531M8075F00198 has successfully completed
the project on the topic TELECOM SERVICE IN RELIANCE
COMMUNICATION.
Director
Mr.Amit
Gupta
ISBR,Bangalor
e
CERTIFICATE
This is to certify that Mr. Gaurav Gupta bearing university
Regd. No. 531M8075F00198 has successfully completed
the project on the topic TELECOM SERVICE IN RELIANCE
COMMUNICATION under the guidance of Prof. KISHAN.
Under Guidance
Prof. Kishan
ISBR,Bangalore
CONTENTS
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
Apply Six Sigma
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
Chapter 4
Chapter 5
Conclusions
Conclusion
Finding
Chapter 6
Suggestions Appendices
Bibliography
6
Questionnaire
ACKNOWLEDGEMENT
I would like to express my sincere thanks to all those instrumental in this
project Work. First of all, I would to thank Prof. Amit Gupta Director of
International School of Business & Research for giving me this
opportunity to do this project and learn from it. I am thankful to
Reliance Communication Ltd for giving me helpful information to
complete this project (Research).
I express my sincere thanks to Mr. Raj (Junior Sales Manager) & Prof.
Kishen (ISBR faculty), for helping me in giving me all relevant
information about the product and service.
My heart full thanks to the whole staff and customers (Corporate) of
Reliance Communication Ltd, who gave me continuous support in
every possible manner to gain practical knowledge in Industry.
Finally I would like thank all lecturers, friends and my family for the kind of
support and to all who directly or indirectly helped me in preparing this
project report and special thanks to website- www.rcom.co.in.
Date:
Place: Bangalore
GAURAV 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.
Project is an essential part in MBA curriculum. It enables the student to share
the real experience in industry & Market. My project has placed in Market
Research.
The topic of my project was TELECOM SERVICES OF RELIANCE
COMMUNICATION.
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
An Overview of current Market Scenario
Brief Study of the Organization
Organizational Set-up
10
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
11
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
12
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.
13
14
15
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.
CHAIRMAN
PRESIDENT
(PRESONAL
BUSINESS)
PRESIDENT
(ENTERPRISES
BUSINESS)
SENIOUR
V.P
V.P
GM
DGM
AGM
SENIOUR
MANAGER
MANAGER
DUPTY
MANAGER
ASST.
MANAGER
MANAGEMENT
TRAINING
17
PRESIDENT
(HOME
BUSINESS)
CHAPTER - 2
Main Studies
18
19
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:
20
Strength
Low Entry Cost
Commission Structure
Fast Activation Process
Network
Connectivity
Data GPRS
Weakness
Branding Image
Distribution problem
Limited product portfolioOnly Mobile
Lack of Competitive Strength
Limited Budget
Opportunity
Threat
Preference of GSM over
Political destabilization.
CDMA
New Entrants
New Specialist Application
IT Development
Rural Telephony
Market Demand
New
Market,
Vertical,
Seasonality, Weather Effects
Horizontal
Competitors` Vulnerabilities
21
[Fishbone diagram]
22
23
CHAPTER - 3
METHODOLOGIES
Research problem
Research Objective & sub- objective
Information Requirement
Choice of Research Design
Research Instrument used
Schemes, Products & Sample size
24
25
26
TALKTIME
VALIDIY
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
200.25
249.20
467.25
578.50
30 DAY
30 DAY
30 DAY
30 DAY
1.10
1.10
RS. 280
RS. 525
RS. 650
ON-NET
(NIGHT)
27
RS. 0.40
FREE
OTHER
RS. 1.00
RS. 1.00
STVs
RCVs
Rs. 55
Rs. 77
Rs. 210
Rs. 310
Rs. 510
Rs. 195
Rs. 496
Rs. 35
Rs. 79
Rs. 49
Rs. 99
Rs. 98
Rs. 250
Rs. 888
Rs. 399
UNRs. 499
LIMITED
ESMS
Rs. 533
Talk Time Rs. 399.37 & Local On-net FREE B/W 11pm to 6am, ( 30 D)
Rs. 49
CUSTOMER PRICE
RETAILAR PRICE
RD LG 3000
1199/-
1165/-
RD LG 3500
1299/-
1265/-
RD LG 3600
1799/-
1690/-
RD LG 6100
2699/-
2540/-
28
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 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
Descriptive Research
Data Source
Primary Data
Research Instrument
Questionnaires
Type of Questionnaire
Structured
Sampling Unit
Retailer
Sampling Method
Judgmental
Contact Method
Personal Interview
29
CHAPTER - 4
30
Age Group
Percentage (%)
18-25
25
28-35
47
36-45
22
Above 45
50
45
40
35
30
25
20
15
10
5
0
18-25
28-35
36-45
Above 45
Percentage (% )
Above figure shows that researcher having surveyed 18 respondents, 25% belong to
age group 18-28%, 47% belong to age group 28-35%, belong to age group 36-45 and
6% above age of 45.
Income Group
Percentage (%)
8000
42
8000-12000
34
12000-20000
18
> 20000
45
40
35
30
8000
8000-12000
12000-20000
> 20000
25
20
15
10
5
0
Percentage (% )
The above analysis shows that 42% of the respondents belonged to the 8000/- and
below income category, 34% belonged to Rs.8000 to 12000 and 18% belonged to
12000-20000
And 6% above income of 20000/-.
company
Percentage (%)
AirTel
40
RIM
BSNL
25
IDEA
Vodafone
31
Virgin
It was found in the survey that 55% of the respondents intended to purchase either AirTel or
Rim services in the future. Out of this 55% more than (that is 30% of the whole sample
size) intended to purchase AirTel and 25% intended to purchase RIM
scale
Percentage
Very good
20
Good
25
Satisfactory
40
Poor
10
Cant say
The survey revealed that 40% of the respondents service RIM as satisfactory. This is a
telling comment. However the survey also found out that 20% and 25% of the
respondents service RIM as very good and good respectively. There were 5% of the
respondents who had nothing to say about the RIM. This is due to low service
awareness and low penetration level.
30%
70%
RCOMM 70%
TATA INDICOM 30%
35
AIRTEL 40%
RCOMM 5%
BSNL 25%
VODAFONE 31%
TATA INDICOM 2%
IDEA 2%
36
37
Quarter ended
Particulars
Units
March2007
March2008
June 30,
2008
Sept. 30,
2008
Total Subscribers
CDMA
GSM
000s
000s
000s
28,007
24,620
3,387
45,794
38,778
7,016
50,773
42,707
8,066
56,046
46,840
9,206
Rs.
Rs.
Rs.
Rs.
Rs.
144,683
57,207
56,291
32,247
31,632
190,678
81,991
82,064
70,762
54,011
53,222
22,502
24,396
15,564
15,123
56,450
23,016
25,288
15,541
15,308
523,126
254,609
99,700
580,324
264,197
129,888
614,761
281,598
152,257
Consolidated
financials
Revenue
EBITDA
Cash profit from
Opera.
PBIT
Net Profit
Total Fixed Assets
Shareholders' Equity
Net Debt
Key Ratios
EBITDA Margin
Net Profit Margin
Return on Net worth
Net Debt to funded
equity- ratio
KPIs
Wireless APRU
Wireless RPM
Wireless MoU per sub
Long Distance Minutes
*APRU-
mn
mn
mn
mn
mn
Rs. mn
Rs. mn
Rs. mn
330,423
202,719
18,238
%
%
%
39.5%
21.9%
26.8%
43.0%
28.3%
33.7%
42.3%
28.4%
34.6%
Times
0.09
0.39
0.49
Rs.
Rs.
Min/month
Mn Min
371
0.74
503
23,238
340
0.74
460
30,045
282
0.66
424
8,367
38
40.8%
27.1%
31.8%
0.54
271
0.64
423
9,802
Chapter - 5
Conclusions
Conclusion
Finding
39
Conclusion
Indian economy is an emerging one and is growing very fast at the
average GDP rate 8-9% 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 MTN 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. Service provided and the better quality of network 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.
RCOM cellular ltd. an Anil Ambani Group of cos. is very fast catching
up with the market by providing cheaper calling rates. The market
strategies adopted by its executives are bearing fruits and the
company although being the Second one to enter the market of Bihar
& Jharkhand 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.
40
Retailers Finding
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 Bangalore 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 (Point of presence) at right time and in adequate number.
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.
41
The claim process services of other competitors viz. AirCel, Smart, & Tata
Indicom are almost at par with the IDEA cellular ltd.
Chapter 6
Suggestions
Appendices
Bibliography
Questionnaire
42
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.
1. PROMOTIONAL ACTIVITIES
The company expands the budget allocation for promotional campaign in center
Bangalore. It has affected the sale service brand image of Reliance especially in
Bangalore. Low supports in promotion have lead to fluctuation in sale
There may be some useful tools which can be summed as follows: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.
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.
Technical Expertise: - The advertisement should show the companies expertise,
experience and pride in market the product service sale.
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, as some expenses are also beard by dealers. Ads on Cable
network result greater audience attention. Schemes, gift offers etc. must be
highlighted through Radio and Local newspapers.
43
A. SALES PROMOTION
Cash discount
Premiums
Appointment of sale promoter
Financial schemes
B. 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.
C. PRODUCT QUALITY AND TECHNICAL FEATURES
As for as some hand set mobile product quality is concerned, there is an urgent
need of technical up gradation of Reliance mobile product line. It would be
beneficial for company to launch some colors mobile hand set with the some added
feature and minimum price.
44
BIBLIOGRAPHY
BOOKS
Marketing Management -
Phillip Kotler
Marketing Research
MAGAZINE
Business Today
Advertising & Management
NEWSPAPERS
Economic Times
Hindustan Times
WEBSITE
www.COAI .in
www.AUSPI .in
The relevant information from the internal source of the organization
45
Questionnaire
1. Whether following things are available?
Monsoon offer
48%
Kit
90%
V-top
40%
E-Recharge
90%
The survey revealed that 48% retailers have monsoon Offer, 90% have kit, 40% have V-top and
90% have E-recharge.
Daily
9%
weekly
72%
In 15 days 18%
Monthly
1%
46
The survey revealed that 9% retailers keep daily stock, 72% retailers keep Weekly stock, 18%
retailers keep stock of 15 days and 1% retailers keep monthly stock.
Service level
Claim level
Product availability
Product awareness
31%
95%
18%
25%
The survey revealed that 31%, 95%, 18%, 25% retailers have problem with service level claim level,
product availability and product awareness respectively.
20 days
30 days
45 days
60 days
11%
25%
25%
39%
The survey revealed that 11%, 25%, 25%, 39% of the retailers are reimbursed by distributor at claim
level respectively.
Airtel
Aircel
BSNL
Tata Indicom
Smart
55%
15%
15%
30%
8%
The survey revealed that Airtel and Tata indicom are the major competitors of
RCOMM.
47
7. If you have any problem then whom you will prefer to talk?
Distributor
TSM
DSE
10%
23%
67%
48
The Survey revealed that 10%, 23% and 67% retailers prefer to talk to Distributor,
TSM and DSE.
SMS
Poster
DSE
10-15 min.
44%
(ii)
15-30 min.
38%
(iii)
30-60 min.
6%
(iv)
Above 60 min.
12%
The survey revealed that 44% retailers take 10-15 min., 38% take 15-30 min., 6% take 30-60 min.
and 12% take more than 60 min. in activation of a SIM.
Airtel
34%
(ii)
Reliance
28%
(iii)
BSNL
17%
(iv)
AirCel
16%
(v)
TATA
4%
(vi)
None
1%
49
50