Reliance
Reliance
Reliance
INTRODUCTION
Technological changes in the telecom and computers have radically changed the business scenario. In turn, the new demands of business have spurred many telecom based technological innovations. In order to exploit these innovations for competing in global markets, business community the world over has been putting pressure on governments to revise the policy, regulation and structure of the telecom sector. Several countries across the world have responded by restructuring the state controlled telecom service provider, increasing private participation, and deregulating service provision. The emergent organizations have attempted to be more responsive to the business needs and have evolved mechanisms to remain competitive even under tremendous pressures. Over the past several years, developing countries have also recognized the important role a responsive, business oriented and technologically advanced telecom sector plays in the growth of the economy. Many developing countries now accept the limitations of a monolith state monopoly in responding to the twin challenges of spurring internal growth and competing in an increasingly global economy. Past experience of reform across many countries suggests that the fundamental underlying issue that must be addressed in telecom reform is introduction of competition for efficiency. Competition is considered to be an important factor than ownership in introducing efficiency.
India's 21.59 million-line telephone network is one of the largest in the world and the 3rd largest among emerging economies (after China and Republic of Korea). Given the low telephone penetration rate India offers vast scope for growth. It is, therefore, not surprising that India has one of the fastest growing telecommunication systems in the world with system size (total connections) growing at an average of more than 20 percent over the last 4 years. The industry is considered as having the highest potential for investment in India. The growth is demand for telecom services in India is not limited to basic telephone services. India has witnessed rapid growth in cellular, radio paging, value-added services, internet and global mobile communication by satellite (GMPCS) services. This is expected to soar in the next few years. Recognizing that the telecom sector is one of the prime movers of the economy, the Government's regulatory and policy initiatives have also been directed towards establishing a world class telecommunications infrastructure in India. The telecom sector in India therefore offers an ideal environment for investment. The telecommunications initiative in the country is lead by Ministry of Communications through the Department of Telecommunication & Department Telecom Services and its undertakings for provision of basic telephone services, national and international long distance communications, manufacture of complete range of telecom equipment, research and development and consultancy services. The Telecom Commission performs the Executive and Policy making functions. Telecom Regulatory Authority of India performs the functions of an independent regulatory body.
public borrowings which would not have been possible under a government framework. However, policy formulation, regulation and several key decision areas remained with the DoT. A new organization, the Telecom Commission, was created with a wide rang eof executive, administrative and financial powers to formulate and regulate policy and prepare the budget for the DoT. The Telecom Commission had four full time members managing technology, production, services, and finance and four part time members representing the planning commission, department of finance, department of industry, and department of electronics. The key driver for change in the sector was the National Telecom Policy announced in May 1994. It boldly specified its major objectives as telephone demand, achievement of universal service obligation and ensuring world class service to subscribers. This policy also paved the way for private sector participation in telecom services. Objectives of NTP (1994) were Telecom for all the telephone in reach of all. Provision for certain basic telecom service at affordable and reasonable price. World class quality of telecom service. India to emerge as a major manufacturing base and exporter of telecom equipment.
Telecom services were categorized into domestic basic (which included basic telephony, telex and fax), domestic value-added services (VAS) which covered all other services such as paging, cellular, data services, VSAT and international basic and VAS. Telecom service liberalization
started in 1984, with private sector being allowed to manufacture customer premise equipment. In 1992, service provision was opened for private sector. At this stage government also unbundled basic and VAS. Private operators were allowed to participate in provision of VAS such as cellular and paging services. Subsequently, basic services in the local lop were opened for private operators. Basic service provision had been planned as a duopoly between the DoT and a selected service provider. Several service providers, one for each of the twenty "circles" into which the entire country had been divided would compete with the DoT for basic services. the bidders were valued both on financial and technical parameters. Permissible network technologies were specified and basic service providers were required to base their services on fiber-optic cable and wireless in the local loop as far as possible. Licenses had been granted for an initial period of 15 years and could be extended by another 10 years. Private Service operators were allowed to provide intra-circle long distance service which contributed to almost 60% of the total calls. The government had mandated that all private basic service operators had to provide 10% of all new lines in rural areas. A weight age of 15% for service provision in rural areas was given at the time of bid selection. A penalty on a per day basis for each telephone not installed sought to prevent companies from delaying meeting rural targets. At the same time, the government encouraged new emerging technologies including local loop wireless, cellular telephony and satellite based communication systems that could help develops rural telecom in a cost effective manner.
Inter-circle communication remained under the DoT. VSNL maintained an exclusive license for international services for at least until 2004. Advanced communication services like cellular, paging, e-mail, fax, data transmission over telephone and leased circuits were increasingly being made available by private operators. However, Electronic Data Interchange standards and its adoption had not made much progress largely due to the problems in long distance communication, lack of coordination for adopting standards, and unclear policies in the various departments involved in national implementation.
HIGHLIGHTS
The telecom muddle is growing murkier and murkier by the day. In addition, so are the claims of the great Indian telecom revolution. 5th largest network in the world, second largest among emerging economies (after China). Annual growth rate of 22% in basic telephone service and over 100% for cellular and Internet services. Private participation allowed in all types of telecom and IT enabled services. License granted on non-exclusive basis for basic, national long distance, international long distance, Internet, V-Sat services etc.
Foreign equity participation permitted in the telecom service sector. Huge market for all types of telecom equipments for both wire line and wireless, Internet, call centres, etc.
Foreign direct investment of up to 100% permitted for the manufacturing of telecom equipment.
foremost truly integrated telecommunications service provider. The company's customer base of over 31 million including close to 1 million individual overseas retail customers, and is rated among the Top 10 Asian Telecom companies. Reliance Communications corporate clientele includes 600 Indian and 250 multinational corporations, and over 200 global carriers.
The company has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire Infocomm value chain, covering over 6000 towns and 3,00,000 villages. Reliance Communications owns and operates World's largest next generation IP enabled connectivity infrastructure, comprising over 150,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region. The company's subsidiary, FLAG Telecom owns World's largest private undersea cable system, spanning 65,000 kilometers connects the top business centers in developed and emerging markets across 6 continents.
Reliance Communications has interests in Direct To Home (DTH) TV also, known as "Big TV". It plans to launch its DTH business by July 2008. Once launched, RelCom will have presence across all B2C communications channel in one of the fastest growing markets in the world.
On the 30th December 2008, Reliance became the first telecom company in India to operate in both CDMA as well as GSM technologies.
VISION
We will leverage our strengths to execute complex global-scale projects to facilitate leadingedge 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.
MISSION
To attain global best practices and become a world-class communication service provider guided by its purpose to move towards greater degree of sophistication and maturity. To work with vigor, dedication and innovation to achieve excellence in service quality, reliability, safety and customer care as the ultimate goal. To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organisation.
10
To contribute towards community development and nation building. To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all, the people.
To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenge and attain goals.
To encourage ideas, talents and value systems. To uphold the guiding principle of trust, integrity and transparency in all aspects ofinterpretation and dealings.
11
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), Indias 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 companys 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 countrys first forays into the overseas capital markets with international 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.
12
SWOT ANALYSIS
13
STRENGTH:
1. Company's reputation:
Reliance Communications Limited is the group- the largest fastest growing most valuable business group, has a strong Brand Value in Market .
Reliance has established a considerable and enviable track record in project execution and project management Reliance has already demonstrated its ability to create a strong franchisee in completely a new service industry- cellular operations.
2. Market Share:
Reliance makes significant contributions to the Indian Economy on various parameters. The reliance group turnover stands at Rs. 62000 crores with exports of Rs. 9370 crores. It contributes 3% of India's GDP, 5% of India's total exports and 5% of India's Tax revenues.
3. Product Offerings The ongoing plans and schemes especially Simply Reliance .
14
WEAKNESS
OPPORTUNITIES
1.Can attract and retain more customers by improving on Network (Signal Strength),Customer Care and Connectivity.
THREAT
Customers.
15
THE PRODUCT
In the year 2004 Reliance infocomm introduced the Fixed Wireless Terminals (FWT) in order to capture the large market of the STD and PCO that are mushrooming at that time. The product proved to be a revolution as the product was easy to obtain and installation was quiet easy and quick. This quality of the new FWT proved to be a boon. The connections were readily available and could be installed just with the help of the battery and power supply. There was no need to lay the wire and the people could start up their own STD on a few days time. They did not want to wait for the long time to get the connections from BSNL. The lower call rates from Reliance were another added feature for the new operators. The lower the call rates meant more profit margins for the operators. Thus the introduction of the FWT revolutionized the world of STD and PCO owners. Firstly the post paid FWT were introduced in the market. Soon they were replaced by the pre-paid connections. This allowed the operators to keep the track of their earnings. Sometimes when the calls dropped the operator could check their account balance so that he could charge the customer accordingly. The recharge vouchers are available in various denominations for the convenience of the customer this was also beneficial for the customers who had the faced problems with the wrong billing.
16
FWT Features
Connect to PBX
You can connect the Reliance Fixed Wireless Terminal to your PBX enabling multiple extension users in your office to share the connection, thereby ensuring that you gain maximum benefit out of the Reliance Tariff Plans
17
Reliance Fixed Wireless Terminal has an integrated modem for internet access. You do not need a separate ISP connection. Just log on to the Reliance network and access Internet at peak data speed up to 115 kbps.
Ensure that the distant between the point of Reliance-FWT installation and the PC is less than 3 meters.
18
Reliance Fixed Wireless Terminal has two voice ports to connect two telephone instruments to be used as parallel connection.
Reliance Fixed Wireless Terminal offers a secure connection that cannot be tampered with or tapped by unauthorised persons.
3waycallconference The call conference facility lets you talk to 2 people at the same time. Speed Enables you to speed dial 30 numbers. Voice mail Facility dialing
Allows the caller to leave a message when you are busy or unreachable.^ Hotline Programme your phone to automatically dial a specified number when you pick up the receiver without having to dial
Call
restrict
call
lock
19
Allows you to prevent misuse by locking your phone. You can also programme STD / ISD restriction on it. Call wait / call hold
Intimates you about an incoming call when you are on another call. Also lets you switch between calls. Call divert
Divert your calls to voice mail or other number of your choice when busy or unreachable. Alarm Built-in alarm to remind you whenever you need.
20
PRODUCT OFFERINGS
1. Tariffs
2. Top Ups
3. Plans
4. Validity
21
RESEARCH METHODOLOGY
22
Research Methodology is a way to systematically solve the research problems. It may be understood as a science of studying how research is done scientifically.
TYPE OF RESEARCH
DESCRIPTIVE RESEARCH:-
research sample is taken out and to make statements about the population on the basis of the sample analysis.
SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or procedure the researcher would adopt in selecting items for the sample. In this research the sampling design is as follows:-
Universe:- Universe in this research is the total retailers in the Meerut city who sells the
GSM Services of various telecom operators and the total customers in Meerut city who are GSM Service users.
23
Sampling Unit:- Sampling unit in the research are those retailers who sells the RIM
GSM Service & customers are those who use RIM GSM Service.
Size of the Sample:- Sample size has been 38 retailers and 100 customers.
Sample Type:- It is a type of Area sampling because in this research sample is taken
on area basis
For Retailers
P.L Sharma Road Abu Lane Razban Bazaar.
For Customers
Ganga Nagar (A , B , C ) Blocks
retailers who sell GSM Services and customers who use GSM Services .
24
Instrument:-
Type of Data:-
(2.) Secondary
Data:-
companies portals, companys website, etc. were studied for relevant information regarding the subject of the projects. These documents were very useful for theoretical, conceptual and organizational Background. On the basis of detailed analysis of information and data collection. From these documents, it has been possible to complete the task
STATISTICAL DESIGN
25
1.Semantic Differential Scale: Used to measure attitude in terms of direction and intensity.
It consist of a number of statements which express either a favourable or unfavourable condition attitude towards the given object. In the questionnaire five types of statements for the customers are mentioned on the basis of their favourableness, which are Satisfied Very Much, Satisfied Some What, Neutral ,Dissatisfied Some What ,Dissatisfied Some What . For calculating these qualitative values in the quantitative values, Ratings are: 5 Marks for Satisfied Very Much 4 Marks for Satisfied Some What 3 Marks for Neutral 2 Marks for Dissatisfied Some What 1 Marks for Dissatisfied Very Much
2. Correlation Analysis: To establish a relationship between different parameters. Respondents:Respondents are the retailers in the given area who sells the GSM
Services of various telecom operators and customers who use the GSM Services .
26
OBJECTIVES
27
RESEARCH OBJECTIVES 1. To Know the Buying Behaviour of Consumers for RIM - Product Offerings - SMS Packs - Value Added Services 2. Comparitive analysis of RIM viz-a-viz major competitors. Based on retailers and consumers response. - Brand (Awareness) - Promotion (Advertisement) - Service (Customer Care) - Connectivity - Network (Coverage Area) 3. To know : - The relationship between Income Level and Amount of recharge . - Liking for VAS and Age group - Satisfaction level of customers for Services of RIM - Reasons for purchase of RIM SIM Cards.
28
29
7.9%
30
DATA INTERPRETATION
Retailers said customers prefer RIM as it is an established company and has the value in the market followed by 10 respondents who said customers are attracted by the extensive promotion of tariffs and plans.7 Retailers opted for RIM because of good Customer Care provided by them.5 Retailers felt that Connectivity of RIM is better than other operators. Only 3 said that Network is good for RIM.
31
SCALE :
3. Average 4. Good
5.Best
32
DATA ANALYSIS POINTS 1 VERY POOR 2 POOR 3 AVERAGE 4 GOOD 5 BEST 0.1 0.2 0.3 0.4 0.5
OVERALL RATING 1 2 3 4 5
Reliance India Mobile has been ranked as 2nd best operator among others by the retailers.
33
23.68% 34.21%
42.11%
34
DATA INTERPRETATION Majority of the Retailers said that RIMs Product (Offerings) are the best so maximum customers prefer it. Since SMS Packs are most attractive so customers prefer to choose RIM over other telecom operators. VAS of RIM also attracts the customer to opt for RIM.
35
4. HOW WOULD YOU RATE OPERATORS (on the scale of 1to 5) ON THE
BASIS OF CUSTOMER COMPLAINTS.
Operators Ratings
Airtel 5
Reliance 3
Idea 4
Vodafone 2
Others 1
SCALE:
3.AVERAGE 4.LESS
5.VERY LESS
DATA INTERPRETATION
36
5. WHAT ARE THE CUSTOMERS PREFFERENCE FOR RECHARGE. easy-RECHARGE 63.15% COUPON 26.32% INTERNET 10.53%
70.00% 63.15% 60.00% 50.00% 40.00% 30.00% 20.00% 10.53% 10.00% 0.00% easyRECHARGE Coupon Internet
26.32%
X-AXIS Y-AXIS
DATA INTERPRETATION
According to Retailers response maximum customers go for easy Recharge as they dont have want unnecessary botheration they face with coupon recharge. 10.53% Retailers said that very less number of customers opt for Internet to get their phones recharged as very less number of customers are aware of it.
38
70.00% 60.53% 60.00% 50.00% 40.00% 30.00% 20.00% 13.15% 10.00% 0.00% upto 500 500-1000 1000-1500
26.32%
39
DATA INTERPRETATION
According to Retailers response customers prefer to have small amount of recharge as majority are students who are dependent on their parents income. Very less number of customers prefer for large amounts especially those with higher incomes.
40
7. ARE YOU AWARE ABOUT THE SCHEMES OF RIM. YES 84.21% PARTIALLY 10.53% NO 5.26%
0.9
84.21%
0.8
0.7 0.6 0.5 0.4 0.3 0.2 10.53% 0.1 0 Yes Partially No 5.26%
: Retailers Response
41
DATA INTERPRETATION
Majority of the retailers were aware of the ongoing schemes of the RIM those who were not aware were the new entrants.
42
40.00%
30.00% 20.00% 10.00% 0.00% 18.42%
PRE-PAID
POST-PAID
43
DATA INTERPRETATION According to retailers mostly customers prefer to have Pre-Paid connections as they dont have freedom to choose the best ongoing plan with cheapest call rates.
44
FINDINGS
45
1. Brand ( Awareness is the major reason of choosing RIM over other telecom operators. 2. RIM is ranked as 2nd best operator. 3. Customers purchase RIMs because of attractive Product (Offerings). 4. Customers faces average problem with RIM . 5. Majority of customers prefer e Recharge 6. 84.21% of retailers are aware about ongoing schemes of RIM 7. Majority of customers prefer Pre Paid Connection.
46
1. Maximum customers of RIM belong to age - group of 26 - 3 5 followed by age group of 16 - 25 which mainly consists of students . 2. Majority of customers prefer for lesser amount of recharge. 3. 42.22% customers purchase RIMs SIM because of Product (Offerings). 4. Age - Groups 26 - 35 and 16 - 25 like VAS of RIM very much as compared to other age - groups. 5. Majority of RIM users were very much dissatisfied with the Network (Coverage Area) and Connectivity. 6. Retailers are the major source of awareness among the RIM users.
7. Reliance India Mobile schemes are providing main help to the low income range of people .
47
SUGGESTIONS
48
2.
CUSTOMER
LOST
INITAILLY
DUE
TO
POOR
NETWORK
49
would be a more satisfying experience then before. What we feel that retaining the customers will be much easier and Reliance must be having records of such customers. We met lot of such people in Ganga Nagar area who said that they relinquished their numbers after they found out that network coverage was not good. Being a service company word of mouth is very important in such a situation it is very important to ensure that the customer should at least be made aware of what Reliance has achieved till now, so that they don't act as influencer against Reliance for potential customers.
50
deliver on this front. It our survey we found the lots of respondents were dissatisfied with the customer care service of Reliance. Merely a satisfied customer will not ensure a long-term loyalty, to ensure that customer should be completely satisfied a good customer care department and after sales service is important and must, efforts should be made to improve it further, so it is important to provide good customer care service.
51
CONCLUSION
52
Perpetual change in business has made inevitable for every business organization to do environmental scanning, so that it may be able to cope with the latest changes in their respective field of business & to move with the pace of the industry. The mobile Phone industry has changed during last five years. The market has been a very high level of competition in the field of mobile services. So it becomes very difficult to mobile service provider companies to launch new offers in order to sustain in the economy & to earn profit. The mobile service market is now truly a buyers market, where a lot of variety is available. It is the customers who can make or ruin the fortune of any company in even a small period of time. Taking into consideration this fact a company should be fully devoted towards very basic concept of marketing, that is, customer oriented business. In broad sense major influential factors which motivate a consumer to buy a telecom product are Price , Network , Connectivity , Service ( Customer Care) and attractive Schemes. Since customers are not satisfied with the Network and Connectivity and averagely satisfied with Customer Care so company should take proper and immediate action about it as the negligence can affect sales of RIM in future.
53
BIBLIOGRAPHY
Sources: Books
1Marketing management - Philip Kotler 2Research Methodology -C.R.Kothari
Internet
3Web Site Web Site www.relianceinfocom.com www.rcom.com
5. 6. 7.
Web Site
www.telecomwatch.com
Business Magazines
54
1. Reason of choosing RIM over other telecom operators. - Product (offerings) - Connectivity - Network (coverage area) - Service (customer care) - Brand (awareness) - Promotion (advertisement)
2. How do you rate the following operators. Airtel ,Reliance, Idea , Vodafone , Others - Connectivity - Network (coverage area) - Service (customer care) - Brand (Awareness) - Promotion (advertisement) 3. Preference for operators on the basis of - Product (Offerings) - SMS Packs - Value Added Services
55
4. Rate operators on the basis of customer complaints. - Airtel - Reliance - Idea - Vodafone - Others 5. Preference for recharge. - Coupon - e-recharge - Internet 6. Amount usually preferred for recharge (denomination).Specifically for reliance. - Upto 500 -500-1000 - 1000 1500
7. Are you aware about the schemes of RIM. - Yes - No 8. Which card is preferred mostly by the customers. - Pre-Paid - Post-Paid
56