CONTENT

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 Data Analysis & Interpretation

• Data Interpretation & Finding of customer Survey
• Market share of mobile subscribers
• Performance Snapshot
Chapter – 5 Conclusions
• Conclusion
• Finding
Chapter – 6 Suggestions Appendices
• Bibliography
• Questionnaire

1
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

2
A DREAM COME TRUE :

The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have
access to affordable means of information and communication. Dhirubhai, who single-handedly built India’s
largest private sector company virtually from scratch, had stated as early as 1999: “Make the tools of
information and communication available to people at an affordable cost. They will overcome the handicaps
of illiteracy and lack of mobility.”

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 Dhirubhai’s 70th birthday, though sadly after his unexpected
demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) 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 revolutionising the way India communicates and networks, truly
bringing about a new way of life.

3
INDIA ’S LEADING INTEGRATED TELECOM
COMPANY :
Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of
companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is India’s leading
integrated telecommunication company with over 80 million customers.

Our business encompasses a complete range of telecom services covering mobile and fixed line telephony.
It includes broadband, national and international long distance services and data services along with an
exhaustive range of value-added services and applications. Our constant endeavour is to achieve customer
delight by enhancing the productivity of the enterprises and individuals we serve.

Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the
joyous occasion of the late Dhirubhai Ambani’s 70th birthday, was among the initial initiatives of Reliance
Communications. It marked the auspicious beginning of Dhirubhai’s dream of ushering in a digital
revolution in India. Today, we can proudly claim that we were instrumental in harnessing the true power of
information and communication, by bestowing it in the hands of the common man at affordable rates.

We endeavour to further extend our efforts beyond the traditional value chain by developing and deploying
complete telecom solutions for the entire spectrum of society.

4
LOOKING BACK, LOOKING FORWARD :
Reliance – Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubhai H
Ambani (1932-2002), ranks among India’s top three private sector business houses in terms of net worth.
The group has business interests that range from telecommunications (Reliance Communications Limited)
to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance
Infrastructure Limited).

Reliance – ADA Group’s flagship company, Reliance Communications, is India's largest private sector
information and communications company, with over 80 million subscribers. It has established a pan-India,
high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to
offer services spanning the entire infocomm value chain.

Other major group companies — Reliance Capital and Reliance Infrastructure — are widely acknowledged
as the market leaders in their respective areas of operation.

ABOUT SH. DHIRUBHAI AMBANI

Few men in history have made as dramatic a contribution to their country’s economic fortunes as did the
founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring
and timeless.

As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai:
The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of
India’s capital markets, the champion of shareholder interest.

But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator. In one lifetime, he
built, starting from the proverbial scratch, India’s largest private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs
14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore

5
colossus—an achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian
private company to do so.

Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when Reliance Textile
Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite
investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the
unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in
exchange for their trust, substantial return on their investments. It was to be the start of one of great stories
of mutual respect and reciprocal gain in the Indian markets.

Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of the greatest growth stories
in corporate history anywhere in the world, and went on to become India’s largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder
uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance
stock, and creating one of the world’s largest shareholder families.

CHAIRMAN'S PROFILE

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 limited.

He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and
Communication Technology, Gandhi Nagar, Gujarat.

Till recently, he also held the post of Vice Chairman and Managing Director of Reliance Industries Limited
(RIL), India’s largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every
aspect of the company’s management over the next 22 years.

He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital
markets. He spearheaded the country’s first forays into the overseas capital markets with international

6
public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance
Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the
company in January 1997.

CHAPTER 1
INTRODUCTION

Concept of Reliance communication

An Overview of current Market Scenario
Brief Study of the Organization
Organizational Set-up

7
• CONCEPT OF RELIANCE
COMMUNICATION:
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 petrochemicals-business 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.

8
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 Communication’s 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.

9
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.

10
"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 Communication’s 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.

11
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 Dhirubhai’s 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.

12
• BRIEF STUDY OF THE ORGANIZATION:
Chairman’s 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 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.

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 country’s
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:

13
• 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.

14
• ORGANIZATIONAL SET UP:

Reliance Communication Limited

CHAIRMAN

PRESIDENT PRESIDENT PRESIDENT

(PRESONAL (ENTERPRISES (HOME
BUSINESS) BUSINESS) BUSINESS)

SENIOUR
V.P

V.P

GM

DGM

AGM

SENIOUR

15
 MANAGER

MANAGER

DUPTY
MANAGER

ASST.
MANAGER

MANAGEMENT
TRAINING

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

16
• INTRODUCTION OF THE TOPIC:

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).

17
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 objective-driven
SWOT analysis is SCAN analysis. Strategic Planning, including SWOT and SCAN analysis.

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

18
• 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

RELIANCE COMMUNICATION LIMITED

Strength Weakness
• Low Entry Cost • Branding Image
• Commission Structure • Distribution problem
• Fast Activation Process • Limited product portfolio- Only Mobile
• Network • Lack of Competitive Strength
• Connectivity • Limited Budget
• Data GPRS

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

19
• APPLY SIX SIGMA:

MAN
[Fishbone diagram]

20
• 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 doesn’t get claim at proper time

• No visit of TSM or any other person to the retailer’s shop

21
• WHAT DOES COMPANY EXPECT TO DO BY
SOLVING THE PROBLEM:

• Customer Satisfaction

• Retailer Satisfaction

• Increase in Sale

• Sales Promotion

• Proper Distribution Channel

22
 CHAPTER 3
METHODOLOGIES

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

23
• RESEARCH PROBLEM
 Collection of Data of other companies –Tata indicom, Airtel & BSNL

 Retailers some time gives wrong data

 Limitation of time and money

• RESEARCH OBJECTIVE:
• To know the demand of Rcom bundle offer along with LGRD 3000 and 6100 as Ill as the
demand of Rcom Bachat pack Sim in the market
• To help in development and introduction of new product
• To identify the company position among competitors
• To determine those factors which persuade retailers for sale of RCOM sims/product
• To find out which type of schemes retailers prefer and why?
• To study the effect of irregular supply on the sale of the product

• SUB OBJECTIVE :
• To compare the Airtel and Tata indicom Bundle offer with RDLG 3000, 3500 & 6100 for
analyzing the status of RCOM Bundle Offer
• To identify the Market share of RCOM
• To find out the basic problems of retailers
• To find out the performance of Distributor
• To find out the basic problems of Channel of Distributor
• To find out the Claims pending of Retailers

24
INFORMATION REQUAREMENT:

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)

25
• SCHEMES, PRODUCTS:
RELIANCE PRODUCT

• Reliance Base Phone

• Reliance Mobile

• Reliance Data Card

• Reliance Voucher, E-Recharge

• Reliance PCO

• Reliance Broad Band

STD CALLING CARD

MRP TALKTIME VALIDIY ON-NET OTHER

(NIGHT)

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 30 DAY 1.10

RS. 280 249.20 30 DAY 1.10
RS. 525 467.25 30 DAY RS. 0.40 RS. 1.00
RS. 650 578.50 30 DAY FREE RS. 1.00

26
 PRODUCTS FOR THE MONTH OF JULY 2008

Rs. 55 FULL T.T of 55 (off net 43+on net 12)

Rs. 77 FULL T.T of 77(off net)
TOP UPs Rs. 210 TALK TIME of Rs. 222 (off net)
Rs. 310 TALK TIME of Rs. 333 (off net)
Rs. 510 TALK TIME of Rs. 555 (off net)

Rs. 195 Local on-net mobile unlimited FREE (validity 30 days)

Rs. 496 Local & STD on-net mobile unlimited FREE (validity 30 days)
STVs Rs. 35 All STD@ Rs. 1 per minute (validity 30 days)
Rs. 79 All Local@ Rs. 0.50/min and all STD@ Rs.1/min (valid. 30 days)
Rs. 49 On-net Local@33PAISE, Off-Net Local@49 Paise (valid. 30 days)
Rs. 99 On-net Local@33PAISE, Off-Net Local@Paise, all STD@99 Paise (30D)
Rs. 98 On-net Local FREE between 10PM to 8AM& other local@50 paise (30D)

Rs. 250 FREEDOM TARIFF, TALKTIME Rs. 147.5 AND VALIDITY 30 DAYS
RCVs
Rs. 888 F.T, TALKTIME RS. 888 AND VALI. OF 8 MONTHS

Rs. 399 Talk Time 175/ & Local On-net Unlimited FREE ( 30 days)

UNLIMITED 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)

E- SMS Rs. 49 500 LOCAL SMS FREE & VALIDITY 30 DAYS

27
 RELIANCE MOBILE HAND-SET

MOBILE CUSTOMER PRICE RETAILAR PRICE

RD LG 3000 1199/- 1165/-

RD LG 3500 1299/- 1265/-

RD LG 3600 1799/- 1690/-

RD LG 6100 2699/- 2540/-

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

28
Sampling Unit- Retailer

Sampling Method- Judgmental

Contact Method- Personal Interview

CHAPTER 4
DATA ANALYSIS & INTERPRETATION

Data Interpretation & Finding of customer Survey

Market share of mobile subscribers
Performance Snapshot

29
• DATA INTERPRETATION OF CUSTOMER’S
SURVEY:
Age group – Tabulating in percentage the age group of customers

Age Group Percentage (%)

18-25 25

28-35 47

36-45 22

Above 45 6

50
45
40
35
30 18-25
25 28-35
20 36-45
15 Above 45
10
5
0
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.

30
 Income Level Tabulation
Income Group Percentage (%)

8000 42

8000-12000 34

12000-20000 18

> 20000 6

45

40

35

30

25

20

15

10

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/-.

31
Percentages of customer who are prospective take of a particular service
company Percentage (%)

AirTel 40

RIM 5

BSNL 25

IDEA 2

Vodafone 31

Virgin 2

32
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 ½ (that is 30% of the whole sample size) intended to purchase AirTel
and 25% intended to purchase RIM

Scaling About RCOMM Service

scale Percentage

Very good 20

Good 25

Satisfactory 40

Poor 10

Can’t say 5

P e rc e n ta g e

40
35
30
25
20 P e rc e n ta g e
15
10
5
0
V e ry g o o d G ood S a tis fa c to ry P o o r C a n ’t s a y

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

33
 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.

• MARKET SHARE OF MOBILE SUBSCRIBERS:

HUTCH
25
21.5 IDEA
20.45
20 BPL
18.06

15 14.89 SPICE
AIRCEL
10 9.65
TATA
5 4.54 MTNL
2.51 3.26 2.7 2.25
RELIANCE
0
BHARTI
BSNL

MARKET SHARE OF CDMA IN KARNATKA

34
 30%
70%
RCOMM
TATA indicom

RCOMM – 70%

TATA INDICOM – 30%

MARKET SHARE OF GSM IN BANGALORE

35
AIRTEL – 40% VODAFONE – 31%

RCOMM – 5% TATA INDICOM – 2%

BSNL – 25% IDEA – 2%

36
• PERFORMANCE SNAPSHOT
37
 12 months period ended Quarter ended

Particulars Units March- March- June 30, 2008 Sept. 30, 2008
2007 2008
Total Subscribers 000’s 28,007 45,794 50,773 56,046
CDMA 000’s 24,620 38,778 42,707 46,840
GSM 000’s 3,387 7,016 8,066 9,206

Consolidated
financials Rs. mn 144,683 190,678 53,222 56,450
Revenue Rs. mn 57,207 81,991 22,502 23,016
EBITDA Rs. mn 56,291 82,064 24,396 25,288
Cash profit from Opera. Rs. mn 32,247 70,762 15,564 15,541
PBIT Rs. mn 31,632 54,011 15,123 15,308
Net Profit
Rs. mn 330,423 523,126 580,324 614,761
Total Fixed Assets Rs. mn 202,719 254,609 264,197 281,598
Shareholders' Equity Rs. mn 18,238 99,700 129,888 152,257
Net Debt
40.8%
Key Ratios % 39.5% 43.0% 42.3% 27.1%
EBITDA Margin % 21.9% 28.3% 28.4% 31.8%
Net Profit Margin % 26.8% 33.7% 34.6%
Return on Net worth 0.54
Net Debt to funded Times 0.09 0.39 0.49
equity- ratio

KPIs
Wireless APRU Rs. 371 340 282 271
Wireless RPM Rs. 0.74 0.74 0.66 0.64
Wireless MoU per sub Min/month 503 460 424 423
Long Distance Minutes Mn Min 23,238 30,045 8,367 9,802

*APRU- Average revenue per user

38
 CHAPTER 5

CONCLUSION, FINDINGS &

SUGGESIONS

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.

Market access and growth is alright but the improvement of quality on the above counts is necessity
of the time.

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 don’t 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 don’t 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.
The claim process services of other competitors viz. AirCel, Smart, & Tata Indicom are
almost at par with the IDEA cellular ltd.

41
• SUGESSION:

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.

A. SALES PROMOTION

Cash discount

Premiums

Appointment of sale promoter

Financial schemes

42
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.

43
CHAPTER 6
APPENDICES

Bibliography
Questionnaire

44
• BIBLIOGRAPHY:

BOOKS

Marketing Management - Phillip Kotler

Marketing Research - Tull & Hawkins

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.

2. What is the frequency of DSE visit?

 Once a Week 20%

 Twice a Week 50%
 Thrice a Week 30%
 None of above 0%

The survey revealed that 20% retailers have said that DSE visits once a Week, 50% retailers
have said that DSE visits twice a Week, 30% retailers have said that DSE visits thrice a Week.

3. What availability of stock you keep for sale in

your shop?

 Daily 9%
 weekly 72%
 In 15 days 18%
 Monthly 1%

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.

46
4. What nature of problem you face with RCOMM?

 Service level 31%

 Claim level 95%
 Product availability 18%
 Product awareness 25%

The survey revealed that 31%, 95%, 18%, 25% retailers have problem with service level claim level,
product availability and product awareness respectively.

5. How much time is taken by the distributor to reimburse your claims?

 20 days 11%
 30 days 25%
 45 days 25%
 60 days 39%

The survey revealed that 11%, 25%, 25%, 39% of the retailers are reimbursed by distributor at claim
level respectively.

6. Who are the major competitors of RCOMM?

 Airtel 55%
 Aircel 15%
 BSNL 15%
 Tata Indicom 30%
 Smart 8%

The survey revealed that Airtel and Tata indicom are the major competitors of RCOMM.

47
 60%

50%

40%

30%
Series1
20%

10%

0%
AirTel BSNL Smart

7. If you have any problem then whom you will prefer to talk?

 Distributor 10%
 TSM 23%
 DSE 67%

The Survey revealed that 10%, 23% and 67% retailers prefer to talk to Distributor, TSM and DSE.

8. How do you know about new scheme?

Companies SMS Poster DSE

Reliance   
Airtel   
AirCel   
smart   
Tata Indicom   

48
9. How much time do you take to activate a sim?

(i) 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.

10. From which company distributors you are more satisfied?

(i) Airtel 34%

(ii) Reliance 28%
(iii) BSNL 17%
(iv) AirCel 16%
(v) TATA 4%
(vi) None 1%

49