Reliance Communication With Competitor

PROJECT REPORT Submitted for Partial fulfillment for The Award of the degree of Master in Business Administration (2008-2010)

J K BUSINESS SCHOOL SOHNA ROAD, GURGAON (HARYANA)

SUBMITTED TO: PROF.KHUSHAL KATARIA SINGH FACULTY GUIDE J K BUSINESS SCHOOL

SUBMITTED BY: HEMANT PAL ROLL. NO.-JKBS083193 MBA

PREFACE All the learning’s in our MBA course is practice oriented. However, hands-on experience in the corporate world during our course is very necessary to be able to test the ability and extent of learning of the student before fully entering the corporate world. The two months training which I underwent at Reliance, Jai Agency, Delhi(West) in was a wonderful learning experience. I was assigned with the project “SWOT analysis of reliance communication with competitor” With the guidance and suggestions provided by Mr. BHUPENDRA SINGH, my Industry Guide, I started first phase of my Project by doing a market analysis, After that I started with the second phase which involved research work pertaining to the customer analysis. In this report I have explained what I undertook based on research and my personal experience. I have also tried to understand business relations with the market developers, business strategies, and ethics and work compliance in an industry as an additional part of my study.

HEMANT PAL SINGH JKBS083193 MBA II SEM

ACKNOWLEDGEMENT

It is my proud privilege to express a deep sense of gratitude and regard to My guide Prof. KHUSHAL KATARIA (Department of Management, JKBS). His initiative Keen interest, expert and valuable guidance at every step Provided a constant Source of inspiration and encouragement to me for Intensive studies in the subject. I am deeply indebted to His. I am very much thankful from bottom of my heart for precious contribution of Mr. BHUPENDRA SINGH, who provided his best help.

HEMANT PAL SINGH MBA II SEM

DECLARATION I here by declare that project work “SWOT analysis of Reliance Communication with competitor” is an honest attempt, to put entire finding on actual data gathered through personal investigation with the managers, employee and market report of the Company. The work presented is my original piece of work and not been submitted to any other place for any degree or diploma. I also declare that all information gathered by me during the course of project at RELIANCE COMMUNICATION LTD.

DATE PLACE: GURGAON

HEMANT PAL SINGH

TABLE OF CONTENTS EXECUTIVE SUMMERY CHAPTER 1: INTRODUCTION o COMPANY PROFILE o HISTORY OF THE ORGANIZATION o VISION o MISSION o PERSONNEL o OBJECTIVES o ORGANISATIONAL STRUCTURE o CONCEPT OF RELIANCE COMMUNICATION o MARKET OVERVIEW CHAPTER 2: MAIN STUDIES o INTRODUCTION OF THE TOPIC o THE PROBLEMS BEING FACED o WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE PROBLEM o STRATEGIC WEAPON OF RELIANCE o ADVERTISING & PROMOTION STRATIGIES CHAPTER – 3: RESEARCH OBJECTIVES &METHODOLOGIES o RESEARCH PROBLEM o RESEARCH OBJECTIVE & SUBJECT OBJECTIVE o INFORMATION REQUIREMENT o CHOICE OF RESEARCH DESIGN o RESEARCH INSTRUMENT USED o SCHEMES, PRODUCTS & SAMPLE SIZE o FIELD WORK

CHAPTER 4: DATA ANALYSIS & INTERPRETATION o DATA INTERPRETATION & FINDING OF CUSTOMER SURVEY

o MARKET SHARE OF MOBILE SUBSCRIBERS CHAPTER 5: CONCLUSIONS o CONCLUSION o FINDING CHAPTER 6: SUGGESTIONS APPENDIXES o BIBLIOGRAPHY o QUESTIONNAIRE

EXECUTIVE SUMMARY These days’ organizations are looking forward to obtain competitive edge over their competitors through highly developed employee skills, distinctive organizational cultures, management processes and systems which are in contrast to traditional emphasis on transferable resources such as equipment that can be purchased any time by the competitors. In RELIANCE also much work is done to develop the Marketing competencies so as to have better results. In this context a part from the various departments the Marketing sales department has got a crucial role to play. In my study I have tried to study the Swot analysis of reliance communication with competitior. For this I had to go to different Retailers and find out what actually they think of the services given by the company. The research conducted with the objective to judge the impact of marketing on sales for Reliance gave me the opportunity to obtain feedback from the retailers both permanent and temporary, thereby analyzing it and finally obtaining the imperative decision. Similarly as a part of my schedule, I not only analyzed the SWOT analysis for RELIANCE but also got a chance to meet different retailers and know what are the problems they are facing and how we can solve their problems. I also analyzed the Channel distribution of jai agency and got to know how communication flow from retailer to consumer. Thus the task was not only restricted in the purview of interaction with the retailers but also providing an insight about understanding the channel distribution. Thus the induction programe followed by the associate manual not only makes the employees familiar with the company but also make them enthusiastic to face challenges and motivate to work for the growth of the organization.

The second part consists of data and their analysis, collected through a survey done on 100 people. It covers the topic “Swot analysis of reliance communication with competitor”. The data collected has been well organized and presented. Hope the research findings and conclusions will be of use. It has also covered why people are not happy with the service provided by the salesman. The advisors can take further steps to approach more and more people and indulge them for taking their advices. The whole task was manual and interactive, giving me a chance to have a word with the customers.

HEMANT PAL SINGH MBA II SEM JKBS 083193

COMPANY PROFILE About Sh. Dhirubhai heerachand Ambani (the founder of the company) d e r f a m i l i e s .

The second son of a school teacher, Dhirubhai was born in 1932 in the village of Chorwad in Gujarat in circumstances that can best be described as modest. Driven by hardship and want, he had to drop out of school early. In 1949, at the age of 17, he went to Aden (now Yemen) in search of opportunity, and worked as a dispatch clerk for A. Besse & Co. A couple of years later, the company became a distributor for Shell products and Dhirubhai was promoted to manage the company’s oil-filling station at the port of Aden. It was here that he dreamed of setting up and owning a refinery, which he later realized with his petrochemicals venture. He returned to India in 1958 to launch his first business venture, a spice trading company named Reliance Commercial Corporation. In 1962, Dhirubhai identified an emerging opportunity in yarn trading and shifted to the new business. Three years later, he changed the name of his company to Reliance Textile IndustriesLimited. In 1966, he purchased land in Naroda, Gujarat, to set up a textile mill. In 1975, a technical team from the World Bank recognised the Naroda mill as one of the best composite textile mills in India and certified it as ‘excellent even by developed country standards’. In 1977, the company went public.

At the time of the Reliance Textiles IPO, participation in the Indian capital markets was largely limited to a small but influential elite which dabbled in a handful of stocks. The great majority of India’s middle class chose to stay away. Dhirubhai’s decision to prefer the capital markets over banks as the primary source of funding for his ambitious expansion plans, was as daring as it was unprecedented. In the event, The Reliance IPO was an unlikely success. Against all odds, Dhirubhai managed to convince a sufficiently large number of sceptical middle class investors to put their money, and faith, in what was then a small, relatively unknown company. The subsequent growth and success of Reliance and its philosophy of generously rewarding shareholders rapidly gave Dhirubhai an iconic status in the Indian financial markets. Under Dhirubhai’s charismatic leadership, the Annual General Meetings (AGM) of Reliance took on the character of large public spectacles. Typically held in large public arenas, and attended by thousands of adoring shareholders, the Reliance AGM became a day to remember in the annual corporate calendar of India. In 1986, the Reliance AGM held in Cross Maidan, Mumbai, was attended by as many as 30,000 stockholders—a record in India’s corporate history. By the mid-80s, Dhirubhai had become something of a living legend, widely hailed by peers and critics alike as one of the greatest corporate visionaries in the history of post-Independent India. But Dhirubhai was never one to rest on his laurels. In the early 80s, he had taken the first important step in strategic backward integration for Reliance with the commissioning of the Patalganga plant which initially manufactured polyester filament yarn and polyester staple fibre. In 1991, he set up Reliance Hazira, for the manufacture of petrochemicals—the next link in the backward integration chain. At the time, Reliance Hazira represented the single largest investment made by a private sector group in India at a single location. Meanwhile, Dhirubhai had firmed up plans of setting up a massive grassroots refinery—the next big leap in his overall strategic roadmap for Reliance. Conceived as the world’s largest grassroots refinery at the time, Jamnagar in Gujarat was to have an annual capacity of 27 million tonnes. In the face of formidable challenges, including a massive cyclone that flattened the project site mid-way through construction, Reliance commissioned the Jamnagar facility in 1999. It was a fully integrated refinery, complete with a dedicated port and a captive supply of power. The refinery was not only commissioned ahead of schedule, but also set up at a cost that was significantly lower than the prevailing global benchmark for a project of such magnitude. It was one of Dhirubhai’s great dreams in life to see ordinary Indians enjoy the enormous economic benefits of being able to access affordable yet world class telecommunications infrastructure. He wanted Reliance to spearhead a communications revolution that would dramatically cut down the cost of connectivity, and propel India into the digital age. His ultimate ambition: To make the cost of a phone call cheaper than that of a post card. It was therefore entirely logical for Reliance to enter the telecommunications space when the sector was opened up for private participation in the 1990s.

The rest, as they say, is history. Today, Reliance Communications is India’s largest information and communications services provider with over 20 million subscribers, and offers the full range of integrated telecom services— at prices that are, by far, the lowest anywhere in the world. Dhirubhai left for his heavenly abode on July 6, 2002.

HISTORY OF THE ORGANIZATION 2009 12 January 2009 Rcom launches GSM services in delhi 31 january 2009 All new reliance mobile GSM connections come with lifetime validity at a nominal charge 5 February 2009 Reliance GSM service in J&K 12 February 2009 R-Globalcom bags work orders from 3 global retailers 13 february 2009 Company launches 50 min STD pack in 35 rs. On GSM 26 February 2009

Rcom launches voice-based mobile navigation service. 9 june 2009 Rcomm has entered into joint venture with Kribhco(krishak Bharti cooperative ltd.) 28 february 2009 Rcom adds 3.3.-mn. Wireless customers in feb. 9 march 2009 Rcom places 300 cr.modem order with huawei,ZTE 10 march 2009 Rcom adds record 11 m subscribers 13 march 2009 Rcom unveils new wireless net service 22 march 2009 Rcomm launches a new format of Reliance mobile store 25 march 2009 Rcom post-paid services for in U.P & uttarakhand. 1 june 2009 Rcom signs hrithik roshan as brand ambassador 8 june 2009 Rcomm bagged a 125 cr. WAN contract from global consuntancy major Mott Macdonald. 11 june 2009 Rcom to offer BlackBerry services for Rs. 299 18 june 2009 Reliance mobile in deal with EA mobile 2008 January 12 Reliance Communications receives Start-up GSM Spectrum January 16 Yahoo partners with Reliance Communications to provide Yahoo One Search for its CDMA and GSM customers. January 31 RCOM's Q 3 Net Profit increases by 48.5% and Revenues Up by 29.8 %. Remains the most profitable Telecom Company in India. February 4 Reliance Communications offers Lifetime Validity at Rs 199 RCOM’s subsidiary Infratel files Draft Red Herring Prospectus with SEBI

February 5 Reliance Mobile strengthens its religious content portfolio on Mobile by tie-up with Sadhana TV February 14 RCOM in partnership with CanvasM, launches Mulitplayer Mobile Games February 19 HDFC Bank ties up with RCOM, turns every Reliance Mobile into a credit card February 27 Reliance Communications consolidates Global Telecom Business under “Business Globalcom” Reliance Communications forays into International Mobile Market with GSM License in Uganda. March 3 Reliance Communications drops prices of Internet Data Cards March 10 Reliance Communications announces ESOPs for over 20,000 employees March 20 Reliance Communications and HTC forge Strategic Alliance March 27 Corporation Bank Launches Banking Services on Reliance Mobile World April 1 Reliance Communications forays into IT space, launches Reliance Technology Services Company April 9 RCOM launches Educational Portal on Reliance Mobile Phones April 25 Reliance Globalcom unit Reliance Infocom BV, Netherlands acquires Global WiMAX Operator eWave World April 29 Reliance Communications Announces Unlimited Free STD calls April 30 Reliance Globalcom Launches Passport Global SIM RCOM's Net Profit up by 70.8% to Rs 5,401 crore May 2 Reliance Communications’ Net Profit up by 70.8% to Rs 5,401 crore (US$ 1,350 million), Revenues higher by 31.8% to Rs.19, 068 crore (US$ 4,765 million) and EBIDTA increases by 43.3% to Rs.8, 199 crore (US$ 2049 million) May 12 Reliance Communications and Alcatel form Joint Venture to offer Managed Network Services to telcos across the globe

May 26 Reliance Globalcom acquires UK based VANCO Group Limited June 24 Reliance Globalcom, Stealth Communications forge Strategic Alliance to extend VOIP Network across 50 countries July 12 CA Exam Results on Reliance Mobile July 22 Reliance Communications Mobile Subscriber base crosses 50 Million July 29 CA Professional Exam Results on Reliance Mobile July 31 Reliance Communications (RCOM) announces its financial results for the first quarter ended June 30, 2008. Net Profit up by 23.9% to Rs. 1,512 crore (US$ 352 million) 2007

World Cup Championship 2007 in South Africa unveils the coveted Trophy in Mumbai and announces Dhoni - Dhanadan Pack

September 9 Reliance Communications launches Money Transfer on Reliance Mobile Phones

September 10 RCOM launches BlackBerry 8830 World Edition Vodafonephone 'Bloomberg Professional' now on Reliance Mobile

September 11 Reliance Communications ties up with Sulekha.com to offer local search on Reliance Mobile World

September 18 Strategic partnership with Vanco

October 3 Reliance Communications announces Classic Celebrations- Classic Handset sales top 10 millionColor Handset @ Rs.999

October 20 Reliance Communications to launch nationwide GSM Services under existing Unified Access Service Licenses

October 22 Reliance Communications brings 'Durgotsav Live' Videocast on mobile

November 7 Reliance Communications Launches 'Diwali Dhamaka'

November 15 RCOM launches Rural Mobile Application Contest

November 16 Fair & Lovely Scholarship on Reliance Mobile World is winner at the MMA awards, USA

A DREAM COMES 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 singlehandedly 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 revolutionizing the way India communicates and networks, truly bringing about a new way of life, relationship and help to develop these concepts. Together, these ideas can be converted into products and services that have great market potential. VISION: “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.” VALUES:  We will put customer first at all times, and built long term relationship with them.

 We shall believe interpretation and keep every commitment that we make.

 We will operate with honesty and integrity interpretation all our dealings.

 We treat every individual with dignity and respect.

 We will approach every endeavor with zeal & an attitude towards excellence.

MISSION:  To attain global best practices and become a world-class communication service providerguided 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.

 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 of interpretation and dealings.

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.

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.

Reliance Energy Ltd.

Reliance Mutual Fund

Harmony

Reliance Life Insurance

Reliance General Insurance

Reliance Communications

Reliance Anil Dhirubhai Ambani Group

Reliance Portfolio Management Service

Reliance Big Entertainment

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 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. He is a member of: •

Wharton Board of Overseers, The Wharton School, USA

•

Central Advisory Committee, Central Electricity Regulatory Commission

•

Board of Governors, Indian Institute of Management, Ahmedabad

•

Board of Governors Indian Institute of Technology, Kanpur

In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of India’s Parliament a position he chose to resign voluntarily on March 25, 2006. Awards and Achievements: •

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

•

Rated as one of ‘India’s Most Admired CEOs’ for the sixth consecutive year in the Business Barons – TNS Mode opinion poll, 2004

•

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.

PERSONNEL: BOARD OF DIRECTORS o

SHRI ANIL D. AMBANI - CHAIRMAN

o

PROF. J RAMACHANDRAN

o

SHRI S.P. TALWAR

o

SHRI DEEPAK SHOURIE

o

SHRI A.K.PURWAR

OBJECTIVES:  Strengths and enhances existing business roles.

 Drives greater empowerment, business focus, operational efficiencies and

customer value.

 Takes another significant steps towards institutionalization and building a

conglomerate of the future. 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.

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. 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 has been launched end of the year

Reliance Communications' wireless subscriber base grew to over 28 mn last fiscal, registering a 60% growth. This makes it one of the top two wireless operators in India. "Economic growth in the future will be indexed to connectivity of millions of enterprise and individual customers. Over the next few years, we will have over 100 million customers, making us one of the top 5 telecom players in the world. In four years, we put up a total of 14,000 towers across the country. This year alone we will add 23,000 more towers. Our wireless network is currently available in 10,000 towns. By the end of this year, it will be available in over 23,000 towns and 600,000 villages," Anil Ambani said at the first annual general meeting of Reliance Communications since the re-organization of the Reliance Group in June 2005. "In four years of operations, we invested around Rs 32,000 crore. This year alone we will invest over Rs 20,000 crore. At the end of this year, we will have covered over 90% of our population. If Version 1.0 of the Indian telecom story was all about affordability, Version 2.0 will be about reach. Our Network expansion will give us the power to drive the market and stay ahead of the curve," Ambani adds. According to Ambani, the financial restructuring of Reliance Communications is the biggest turnaround story in the history of corporate India. The inherited ownership structure of Reliance Communications was complex. The reorganization has yielded a simple, fair, and transparent ownership structure, and given Reliance Communications 100% ownership of all operational and associate companies. Reliance Communications is now among the three most valuable private sector companies in India, and the five most valuable telecom companies in Asia. In the current Fiscal, Reliance Communications will spend Rs 16,000 crore to further expand and strengthen its network coverage across India and the rest of the world. In addition to organic growth, Reliance Communications will leverage the advantages derived from this impressive financial platform to explore and pursue any significant Opportunities available in the telecommunications sector. "We are currently evaluating a number of inorganic opportunities in select international markets to further expand our footprint," Ambani said. Reliance 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. Having achieved tremendous growth, the main challenge for Reliance Communications is to improve quality of service and ARPU. Its enterprise business is also not in a position to compete with the global majors. Stock market valuations may boost the fortunes of an entrepreneur, but Ambani needs to address the issues faced by the growing mobile customer base, especially in India, where bureaucracy takes pride in checking the businessman.

(2) 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 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.

ORGANIZATIONAL STRUCTURE Reliance Communication Limited

CHAIRMAN PRESIDENT

PRESIDENT

(PERSONAL BUSINESS)

(ENTERPRISES BUSINESS)

SENIOR VICE PRESIDENT

VICE PRESIDENT

GENERAL MANAGER DEPUTY GENERAL MANAGER

ASSISTANT GENERAL MANAGER

SENIOR MANAGER MANAGER

DEPUTY MANAGER ASST.MANAGER

MANAGEMENT TRAINING

PRESIDENT (HOME BUSINESS)

CHAPTER – 2 MAIN STUDIES o INTRODUCTION OF THE TOPIC o

THE PROBLEMS BEING FACED

o WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE PROBLEM o STRATEGIC WEAPON OF RELIANCE o ADVERTISING & PROMOTION STRATIGIES

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). 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, has been the subject of much research. Strengths: attributes of the organization those are helpful to achieving the objective. Weaknesses: attributes of the organization those are harmful to achieving the objective. Opportunities: external conditions those are helpful to achieving the objective. Threats: external conditions that is harmful to achieving the objective. SWOT analysis can be used for all sorts of decision-making, and the SWOT template enables proactive thinking, rather than relying on habitual or instinctive reactions. The SWOT analysis template is normally presented as a grid, comprising four sections, one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats. The free

SWOT template below includes sample questions, whose answers are inserted into the relevant section of the SWOT grid. The questions are examples, or discussion points, and obviously can be altered depending on the subject of the SWOT analysis. Note that many of the SWOT questions are also talking points for other headings - use them as you find most helpful, and make up your own to suit the issue being analyzed. It is important to clearly identify the subject of a SWOT analysis, because a SWOT analysis is a perspective of one thing, be it a company, a product, a proposition, and idea, a method, or option, etc. Here are some examples of what a SWOT analysis can be used to assess: • • • • • • • • • •

a company (its position in the market, commercial viability, etc) a method of sales distribution a product or brand a business idea a strategic option, such as entering a new market or launching a new product a opportunity to make an acquisition a potential partnership changing a supplier outsourcing a service, activity or resource an investment opportunity (2) 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 DL or any other person to the retailer’s shop

RELIANCE COMMUNICATION LIMITED Strength • • • • • •

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

Opportunity • • • • •

Preference of GSM over CDMA New Specialist application Rural Telephony New Market, Vertical, Horizontal Competitors` Vulnerabilities

Weakness • • • • •

Branding Image Distribution problem Limited product portfolioMobile Lack of Competitive Strength Limited Budget

Only

Threat • • • • •

Political destabilization. New Entrants IT Development Market Demand Seasonality,Weather Effects

(3) WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE PROBLEM • Customer Satisfaction • Retailer Satisfaction • Increase in Sale • Sales Promotion • Proper Distribution Channel STRATEGIC WEAPONS OF RELIANCE The sharpest weapon that a corporation can develop to survive and thrive, in the globalized market place is competitiveness. Its cornerstone, as articulated by strategy Guru Michael Porters is. its ability to create more value, on a sustainable basis, for the customer than its rivels can. The

competitiveness of a corp. flow froms a clearly defined strategy, devised after analysis the different forces in the industry impacting on the company, According to Porterian three generic alternatives:

Cost leadership, differentiation, or strategic focus. Applying these principles along with the related ones of building entry barriers, erecting economics of scale, developing marketing competitors Reliance has attained global levels of competitiveness adopting a single unique route to attain competitive status (their competitive weapon is the scale of operations). TECHNOLOGY Reliances led achievement in manufacturing is, of course, its comment once process technology since its products do not need cutting edge. Not only has Reliance pushed its production capacity beyond normal levels, its has develop supervisor processes to increase the utilisation and cost efficiency levels. The company has technical collaborations with Du-Pont Canada, Unipol/sheel technology Japan, and Sinco technology Japan which name enhanced their capabilities in the areas of production efficiency and quality improvements - this helping Reliance to supply to its customers the best of quality at the right price. Communication is the synergy of information and communication services brought about by the digitalisation and convergence. In the fast moving and competitive knowledge era, Communication is not only a driver of growth but also competitiveness. Reliance Communication is revolutionising telecommunication in India by provisioning services that would match with the leading operators of the most developed countries. These services are the outcome of state-of-the-art network technologies that have been inducted in the Reliance Communication network.

Our network consists of the latest switching, transmission and access technologies. The core of the network consists of fiber deployed throughout the country. Deployed over the fiber media are the DWDM and SDH transmission technologies in ring topology to provide ultra-high bandwidth capacity and failure proof backbone. Besides circuit switched technologies, the backbone also has an IP architecture and uses MPLS technology to carry data on an overlay network. In addition gigabit ethernet provide broadband services on wireline access. The switching technology deployed in our network is based on a combination of wireline and wireless switches. While state-of-the-art digital feature-rich wireline switches meet the growing needs of Indian corporates, the CDMA 1X based wireless switches are advanced enough to provision not only quality spectrum efficient voice services but also 144 kbps of data rates besides SMS and MMS services. CDMA 1X provides an in-built connectivity to internet which gives users the power of accessing internet and data services anytime. These switching technologies enable us to provide high quality of voice and data services to give a new experience to users. The entire network is seamlessly integrated with the deployment of a range of operations and business support systems (OSS / BSS). These systems help make our operations more efficient and customer friendly. In addition, the state-of-the-art NOC helps us monitor our entire network at one place. Call center technologies deployed would help us give the best customer service. Finally, the most important aspect of our services is the range of feature-rich CDMA 1X handsets with wider colour display at attractive prices. All handsets are data enabled that permit users to access our bouquet of services. The technologies help Reliance Communication to provide world class telecom services in both voice and data at prices affordable by the Indian masses. ADVERTISING & PROMOTIONAL STRATEGY “Doing business without advertising is like winking at a girl in the dark, you know what you are doing but nobody else does”.

Reliance is a big or one may say a massive industrial by :- with its rapid industrial vertical integration it has created awareness and an image for itself, in the domestic as well as international markets. This itself is a promotional tool. Vast recognition to Mr.Ambanis achievement in business magazines, newspapers. International magazine have itself helped in promoting the company and is good in the country. Recognition to Mr. Ambani work hear also seen when he received the awarded for the best industrialist by the Wharton school of management USA. Most of the advertising for Reliance is done by the Advertising Agency "Mudra" which is there in house agency. The company is an industrial product advertiser. Some most common objective of its one to inform, to bring in orders, to stimate queries, to empanel the marketers name on the buyers panel of sources industrial advertising is prepared in the form of message inserted in trade journals and lay press. It motivates the distributors. It also seeks to develop and build up a corporate image. It reminds the final consumer about the part it play in offering to them the final product. Reliance's customer focused R&D efforts comprise a critical part of its competitive arsenal used for creating customers and enhancing market share. Quality initiatives at Reliance are closely integrated with R&D efforts, R&D is aimed at product quality enhancement, enhancing customer serve, new product developments, process improvement, and development of more environment friendly processes. Reliance's customer focused R&D efforts comprise a critical part of its competitive arsenal used for creating customers and enhancing market share. New product applications developed by the R&D team continue to be key drivers of incremental demand growth for Reliance's products. While introducing new products, technical interaction with customers is encouraged for understanding their requirements to fulfill their quality needs. R&D efforts are thus fine tuned to deliver solutions. The focus of the R&D and market development efforts is not merely to sell and service customers but to deliver value.

Reliance's R&D efforts are through ongoing internal efforts as well as joint efforts in collaboration with the premier research organizations in India such as National Chemicals Laboratory, University Department of Chemical Technology (UDCT), Indian Institute of Technology (IIT) and the Bhabha Atomic Research Centre (BARC). Reliance's Product Applications Research Center (PARC) has been at the forefront of applications research in India. PARC - the technical wing of Reliance - is active in various customer awareness initiatives and development of new product applications. Equipped with most modern instruments and equipment and manned by well talented technologists. PARC is today a state of the art technology center in the Indian petrochemical industry. Its regular publications and programs meet with great acceptance from customers. The many presentations made by PARC teams over the year have been recognized as well researched and highly relevant. These presentations and other PARC initiatives have established Reliance's position as a company dedicated towards applying latest technology for the customer's benefit in an environment friendly way. We believe that : Our aims of employee development are not just about acquiring skills to solve specific problems but also expanding minds to address problems and opportunity which have not become apparent with full understanding of cross functional linkages. Continuing personal development is the constant obligation of all employees and constant responsibility of all Executives, Managers and Supervisors. The development and use of human potential and a learning organization is our bridge to continue success in the future. FUNDAMENTAL TO THE WORK OF THE RELIANCE ORGANISATION AND ITS ULTIMATE competitive position, is a respect for the development of the employee through selfhelp and guidance to foster common purpose and cohesion. We believe that:

•

Our aims of employee development are not just about acquiring skills to solve specific problems but also expanding minds to address problems and opportunities which have not become apparent with a full understanding of cross-functional linkages.

•

Continuing personal development is the constant obligation of all employees and constant responsibility of all Executives, Managers and Supervisors.

The development and the use of human potential and a learning organisation is Reliance’s bridge to continued success in the future. YOUNG WORKFORCE Reliance is a relatively young company. The average age of employee in the organisation is just 36 years.

While wisdom comes from the top, decision making is pushed down below.

More

importantly, people at Reliance have been drawn from diverse academic backgrounds - but with the fire and enthusiasm to take on increase - kingly bigger challenges. There is a continuing emphasis on inducting fresh talent. During the year 1997-98. as many as 216 fresh graduate engineer trainees were inducted into Reliance. Well-qualified An emphasis has been placed on recruiting people with formal training that matches their job profile. VISION OF RELIANCE COMMUNICATION Reliance Communication envisions a digital revolution that sweep the country and bring about a New Way of Life. A digital way of life for a New India. With mobile devices, netways and broadband systems linked to powerful digital networks, Reliance Communication usher fundamental changes in the social and economic landscape of India. Reliance Communication help men and women connect and communicate with each other. It enable citizens to reach out to their work place, home and interests, while on the move. It enable people to work, shop, educate and entertain themselves round the clock, both in the virtual world

and in the physical world. It make available television programmes, movies and news capsules on demand. It unfurl new simulated virtual worlds with exhilarating experiences behind the screens of computers and televisions. Users of Reliance Communication's full range of services would no longer need audiotapes and CDs to listen to music. Videotapes and DVDs would not be necessary to see movies. Books and CD ROMs would not be needed to get educated. Newspapers and magazines would not be required to keep abreast of events. Vehicles and wallets become unnecessary for shopping. Reliance Communication disseminate information at a low cost. "Make a telephone call cheaper than a post card". These prophetic words of Dhirubhai Ambani be a metaphor of profound significance for Reliance Communications Reliance Communication

regularly unfold new applications. Continually adapt new digital

technologies. Create new customer experiences. Constantly strive to be ahead of the world. Reliance Communication transform thousands of villages and hundreds of towns and cities across the country. Above all, Reliance Communication pave the way to make India a global leader in the knowledge age. THE RELIANCE: LAUNCHING STRATEGIES Reliance communication is in the process of establishing a nation-wide, high capacity, integrated (wireless and wire-line) and convergent (Voice, data and video) digital network, to offer services that span the entire communication value chain – infrastructure, services for enterprises and individuals, applications and consulting. The company’s punch line for prospective customers recalls Dhirubhai Ambani’s words : “Male a telephone call cheaper than a post card”. The network based on code division multiple access (CDMA) technology aims to cover more than 65 percent of India’s urban population. A senior Reliance official told frontline that the company opted for this platform because CDMA is the best technology. GSM (global mobile communications) is history. Reliance says the difference between the two technologies is

significant. “Reliance’s delayed launch is costing it not only in terms of revenue but in credibility as well” a telecom analyst said. Having realised this, and in order to stymie its competitors from cornering the entire subscriber base, Reliance is offering free access to its network until the commercial launched. The tactic appears to be aimed at capturing subscribers who would not mind checking out the service. When it is launched they would have realised its benefits and continue using it paying competitive fees. This also gives them time to test the quantity of the network. By that time issues such as interconnect, SMS (short messaging service) and Internet may get sorted out. Mehesh Uppal, director, Telecommunications and Computer Information Systems, is critical of the regulatory framework. “We are perhaps the only country where CDMA-based mobile services are treated as an extension / add-on of a fixed line service rather than like any other mobile service. The two technologies compete aggressively in the mobile market the world over. That is what they should do in India”. He pointed out that the “real issue” was not whether should be allowed or not. Since 1999, the regulatory framework regards in technology natural terms except with respect to the last mile. The crux of the issue that has raised a controversy is whether CDMA-based can be used by fixedline operators on terms and conditions not of mobile licences but fixed-line basic licences come with vastly different and much more favourable interconnect terms for fixed-line operators which cellular operators do not have. Uppal believes that the earlier choice of GSM “was a good one”. “The market was nascent. It was a small market. Had there been different technologies, the market would have been split and made it even more difficult to achieve volume efficiencies,” he remarked. He argues: “Since both technologies have came into their own, they should be allowed to compete head-on. We should not have the current regulation, which applied different sets of terms and conditions for their use. Technology neutrally is a must”. The Reliance strategy is to straddle all three segments of operations in telecom – fixed line, mobile and limited mobile, or services.

Analysts and commentators agree that TRAI is likely to remove the separate status as a category of service that has been accorded to . The company already has a presence in national and international long-distance telephony. TRAI’s recent ruling on tariffs has benefited operators. There are already murmurs that the ruling fits Reliance’s requirements very well. Although cellular operators, notable among them the Bharti Group, have alleged that they stand to lose Rs. 2,000 crores because of the free incoming calls mandated by TRAI charges, industry sources say that it is now pay back time for cellular operators, who have consistently benefited from favoured treatment at the hands of TRAI. The clear losers are, however, the two publicly owned fixed-line telecom operators, Bharat Sanchar Nigam Ltd. (MTNL). Although the new interconnect charges prescribed by TRAI appears to have “levelled the field” between and cellular operators, the regulator has tilted the balance in faviour of the companies by fixing differential pulse rates for the two sets of operators. Subscribers of fixedline operators in a non-metro- typically of MTNL or BSNL – be charged on a pulse rate of 120 seconds if they call a phone. However, calls to a cell phone be charged at a pulse rate of 60 seconds. In effect, calls to call to a phone. It boils down to this: it is cheaper to call a phone than a cell phone, although the two platforms are basically the same. The picture is even more gloomier from the viewpoint of the two public sector companies, which have played a major part in extending the reach of telecom in India in the last decade. First, their tariffs have been increased; this implies that subscribers have greater incentive to migrate out of their networks, into the hands of competitors who may be seen to be offering a better price for the service. Second, the structure of the interconnect charges is such that the two public sector companies earn lower revenues if their subscribers call subscribers belonging to rival companies, rather than cellular subscribers. In effect, the TRAI ruling mandates that BSNL and MTNL subsidize the services of rival companies. Moreover, the regulator has prepared the ground for a shakeout in the telecom industry by, in effect, pushing existing MTNL and BSNL subscribers to migrate to another, preferably platform. And, if the owner of that platform happens to be Reliance!

One of the elementary principles of networking relates to the way in which subscribers attribute value to a network. The network is only as good as its reach. As the size of the network increases, so does its value, but exponentially. Applying this to the Indian telecom industry can be of some use. Basically, the reach of the Indian telecom network is still synonymous with the reach that BSNL and MTNL have. Since the 1990s, the cellular operators have established small networks, but have ridden the publicly owned system that has been laid with considerable public investment. With the entry of Reliance, and the government’s own commitment to sell BSNL and MTNL in the not-too-distant future (Mahajan is on record as having said that BSNL “ not be sold before 2004”), it is evident that the field is being prepared for the appropriation by private companies of infrastructure built by publicly owned companies. Reliance has offered STD calls between it phone users at 40 paise per minute, and added value to the proposition with the offer of a CDMA handset in exchange for the GSM-based cellular phone and finance for a deferred payment option. The offer remain on paper unless Reliance expands its own network of subscribers. But until such time that its system acquires a critical mass, subscribers may be deterred from climbing on to the Reliance bandwagon. What the new tariff structure does is to apply the pressure on customers of other networks – subscribers to fixed-line operators and cellular operators, in that order – to migrate to the Reliance or another platform, say, that of the Tatas. Reliance also plans to use the CDMA to offer both SMS, and other data services to retail customers, on its basic telephone package. For corporate customers, the company’s investments in optic fibre offers broad-band connectivity. Its presence in the long-distance segment enable it to provide “end-to-end services” for such clients. It has promised that the dial-up Internet “be passe”. It is evident that Reliance is aiming to grab market shares quickly. Mukesh Ambani, the company’s chairman, told reporters at the launch of Reliance communication that the company aimed to provide anything between 1 and 8 million handsets by March 2003. To put this is perspective, all the cellular operators together serve about 10 million subscribers. The sharp increase in tariffs effectively rule out any increase in teledensity in the short term. Analysts, who had suggested prior to the TRAI ruling that teledensity increase sharply because of the entry

of Reliance are likely to be way off the mark because the tariff revision impact significantly on their prediction. The Bharati Group has been among the key beneficiaries of the regulatory system so far. Bharati has operations in 15 cellular circles and five basic circles; it has era of “managed competition”, it have to make at least some way for Reliance. Reliance has licences that it had from the initial foray in the first round of licence auctions. Instead, it appears to have placed its bets rather early on the CDMA platform. In 2001, it gathered other services operators and lobbied successfully with the Department of Telecommunications (DoT), the Union Communications Ministry, TRAI and the apex tribunal to allow limited mobility within a short distance. Until then was perceived only as a solution to bridge the “last mile” problem in the telecom network. (The Reliance Group has a total revenue earnings of Rs.65,000 crores a cash profit of over Rs.7,500 crores, a net profit of over Rs. 3,600 crores and exports of Rs. 11,400 crores. The group has total assets valued at Rs. 69,000 crores.) A senior Reliance official told Frontline said that TRAI’s ruling “has worked in our favour”. Although he lamented the plight of the “average consumer”, he pointed out that they did have a better alternative in Reliance. According to an informed source, TRAI “may actually be a single tariff regime”.

A Reliance Official Told An Economic Daily Recently: “Don’t Forget That Our Company May Seem To Be Diversified, But It Has Built A Core Competence In Terrific Project Management And Government Liaison Skills Which Are A Must Core Sector Ventures”. That, More Than Anything Else Sums up the Behemoth’s Foray into the Telecom Sector and the Regulations That Govern It.

What Should Reliance Do 

Aggressive promotion of services and product with their competitive benefits than other service provider in market. Only promoting the Unlimited STD offer not serves the purpose.



Come up with competitive plans in prepaid market also. At present we have only Rs700/and Rs435/- plan only in prepaid services for Unlimited STD. (Reliance has recently launch the lowest prepaid plan starting from Rs150/-).

Still fighting to break the leadership of Airtel in cellular market, in spite of fact Reliance has lowest call rates at present. OPERATOR

USER BASE(MILLION)

Airtel

9.45

Vodafone

6.92

Reliance

5.92

Tata Indicom

3.64

Idea

1.61

MTNL

1.48

Total

29.02

(Source: COAI and AUSPI) This is total user base of Delhi region. Airtel is maintaining the leadership in the market followed by Vodafone and then comes Reliance. Reason: 

Airtel is a big old name in the cellular market.



Airtel always come up with some innovative plans and services for its customer for e.g. Airtel was first one to come up with concept of Hello Tunes, Airtel was first one to launch Advance Rental scheme, it has special plans for youth, women and senior citizens. Airtel has something for all.



Vodafone has zero rental plans for its customer and very competitive call rates.



Both Vodafone and Airtel has roped up the best in the country as their brand ambassadors. Vodafone has Rahul Dravid; Airtel has Shahrukh Khan and Sachin Tendulkar.



Airtel and Vodafone push large amount of money in the promotion of their services, and keep inform their customers about any new plan in market.

Benefits of Reliance 

With Reliance you can start enjoying the mobility from Rs1800/- only.



Reliance has postpaid plan starting from Rs99/-. No service provider has any plan lower than Rs149/-. In this way Reliance cut down your initial cost for enjoying the mobility.

CHAPTER – 3 RESEARCH OBJECTIVES &METHODOLOGIES  RESEARCH PROBLEM  RESEARCH OBJECTIVE & SUBJECT OBJECTIVE

 INFORMATION REQUIREMENT  CHOICE OF RESEARCH DESIGN  RESEARCH INSTRUMENT USED  SCHEMES, PRODUCTS & SAMPLE SIZE

 FIELD WORK (1) RESEARCH PROBLEM  Collection of Data of other companies –Tata Indicom, Airtel & BSNL  Retailers some time gives wrong data  Limitation of time and money (2) RESEARCH OBJECTIVE •

To know the demand of RCOM bundle offer along with LGRD 3000 and 6100 as well 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

(3) SUBJECT 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

(4) INFORMATION REQUIREMENT Complete Price structure of RCOM, Airtel & Tata Indicom offer which includes • Sim Processing Fees •

Discount Offered

•

Schemes offered

•

Service Tax

(5) SOURCES OF INFORMATION •

Data collected from the Company

•

Secondary Data

•

Internet

•

Retailers

•

Distributor

•

Sales Executives

•

Other Trainees (Runner)

(6) SCHEMES, PRODUCTS RELIANCE PRODUCT  Reliance Base Phone  Reliance Mobile  Reliance Data Card  Reliance Voucher, E-Recharge  Reliance PCO  Reliance Broad Band

PRODUCTS FOR THE MONTH OF JULY 2009

TOP Ups

STVs

Rs. 55

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

Rs. 77

FULL T.T of 77(off net)

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)

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

Rs. 888

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

Rs. 399

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

Rs. 499

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

Rs. 533

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

Rs. 49

500 LOCAL SMS FREE & VALIDITY 30 DAYS

RCVs

UNLIMITED

ESMS

STD CALLING CARD MRP

TALKTIME

VALIDITY

ON-NET (NIGHT)

OTHER

RS. 95

84.66

15 DAY

1.25

RS. 115

102.35

15 DAY

1.20

RS. 125

111.25

15 DAY

1.20

RS. 225

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

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/-

FIELD WORK I.

MARKET VISITING & SURVEY (18/5/2008 to 26/5/2008)

II.

APPROACH FOR NEW RETAIL COUNTER(12/6/2008 to 19/6/2008)

III.

TO LAUNCH NEW SCHEME THROUGH THE CANOPY (24/7/2008 to 4/7/2008)

MARKETING VISITING & SURVEY – 12TH May was my first day of summer training in Reliance communication in Delhi. I met to BHUPENDRA SINGH sir. He took my interview and selects me for summer training. Then he chose my mentor Mr. AJAY who guides me in summer training. After that I had to do my summer training under in Ajay sir. First day I went Jai Agency that have the Distributor ship of Reliance Communication. Then after we met the Three DSR (Distributor Sales Representative).Through the DSR we saw and NAME AREA MANISH

TIKRI BORDER,NANGLOI PART-1

KAMAL

NANGLOI PART-2

ASHISH

PASCHIM VIHAR,CHANDRA VIHAR

PAWAN GUPTA

HASTSAL

RAJESH

MOHAN GARDEN

GHANSHYAM

UTTAM NAGAR -1

MANOJ

UTTAM NAGAR -2

VIJAY KHANNA

CHANKYA PLACE

got the all information about the market and knew that how they work and how increase the goodwill of Reliance Communication. They give the regular information about current scheme & plan. We saw that there were more than 534 hundred small & big counters under the Jai Agency.

AREA OF DSR UNDER JAI AGENCY Time of visited all retail counters with DSR I learnt all those thing how to explain in front of retailer about the plan & schemes and main thing I learnt there how to convince for accepting a big budget schemes. We familiarized with some kinds of problems those having been retailer, in his working day with customers. After finishing all the counters I went again to the main office for reporting my work to Ajay sir. Along with all work we had to also seen those some counters which did not keep recharge voucher, E-recharge and some types of reliance handset like GSK & CDMA. The main reason through which they can not keep the above given facilities is that they were not telling their problem with us. For removing these problems, there was only one way that they have to tell us their problem with us through which we can remove that problem. Therefore at last I asked the problem and they shared with us their problem. Since I was a junior therefore it was my responsibility to keep all the problems in front of Mr. Ajay sir. It was my marketing visiting for the 7 days which was the great experienced work for me. In this period I learnt some kinds of idea for increasing the sale, also I got familiarized with those problems which generally come in the market for selling purpose. FULL NAME OF SOME KINDS OF SERVICE LTV – Life Time Validity CAF – Customer Application form GSK – Get started Kit

FWP – Fix Wireless Phone STV – Special Tariff voucher OTAF – Over the Air Fulfillment FRC – First Recharge Coupon GSM – Global System of Mobility CDMA – Code Dual Module Assessment APPROACH FOR NEW RETAIL COUNTER – In the second phase of my training I got the target for opening 45 new counters in the whole area that comes under in Mr. Ajay sir. I achieved my target within 19 days for the 45 counters new approach I moved all around the area which comes under in Mr. Ajay sir. I was having the different kinds of plans and schemes through which I could make the new counters. Area was as follow: Mohan garden, Rama garden, Peergadi, Uttam nagar,part-1,part-2 and Nangloi part-1 and part-2,chankya place. I got my 90% target. It was the good achievement for me and according to Mr. Ajay sir it was the much appreciated work which was done by me. TO LAUNCH NEW SCHEME THROUGH THE CANOPY – In the last phase of my training one new scheme was launched in the market place and this work was conducted by the organization through me. In the canopy we had to achieved a target and the target was to provide a latest offer to the customer directly launched by RIM service by reducing the call rate of RS.49/- SIM card and after start the SIM recharge with 46 and call rates will be R2R-25p/m, R2O-50p/m and STD-1 r/m. This offer was specially made for customer not for retail shopkeeper’s .during the 7 days period of canopy we have to only analyze the response of customer upon this offer. After that for the selling of SIM we have to provide this offer in the main location of city or in the crowded area like opposite side of Big Bazaar, near of Nangloi, hastsal, peeragadi,Uttam Nagar, Rama garden I got the target for selling 40 SIM cards in a single canopy. But I got very good response from the customer and I sold more than 40 SIM card in a single canopy. That was also my good achievement and I knew how to sale and provide service with product to customer. 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

CHAPTER - 4 DATA ANALYSIS & INTERPRETATION • Data Interpretation & Finding of customer Survey • MARKET SHARE OF MOBILE SUBSCRIBERS (1) 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

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 Level Tabulation Income Group

Percentage (%)

8000

42

8000-12000

34

12000-20000

18

> 20000

6

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/-. Percentages of customer who are prospective take of a particular service company

Percentage (%)

AirTel

30

Vodafone

25

RIM

20

Tata Indicom

13

MTNL

10

Aircel

2

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

Percentage

40 35 30 25 20

Percentage

15 10 5 0

Very good

Good

Satisfactory

Poor

Can’t 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.

(2) MARKET SHARE OF MOBILE SUBSCRIBERS

MARKET SHARE OF CDMA IN DELHI & NCR

RCOMM – 44% TATA INDICOM – 56%

MARKET SHARE OF GSM IN DELHI & NCR

AIRTEL – 28% VODAFONE – 23% IDEA-18% MTNL – 16% RCOMM – 12% AIRCEL – 3%

CHAPTER - 5

CONCLUSIONS • Conclusion • Finding 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. RCOMM cellular ltd. An Anil D.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 DELHI & NCR 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. 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 DELHI 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, VODAFONE, TATA Indicom network connectivity of very good to good level. Around 16% retailers which are under JAI AGENCY 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 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, Vodafone, & Tata Indicom are almost at par with the IDEA cellular ltd.

Chapter – 6

Suggestions Appendixes • Bibliography • Questionnaire 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 expand the budget allocation for promotional campaign in center DELHI & NCR. It has affected the sale service brand image of Reliance especially in DELHI. Low supports in promotion have lead to fluctuation in sale There may be some useful tools which can be summrized as follows:(1)

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.

(2)

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.

(3)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. 2. SALES PROMOTION Cash discount Premiums Appointment of sale promoter Financial schemes 3. 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. 4. 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.

ANNEXURE 1

SAMPLE QUESTIONNAIRE (FOR FINDING RIM INDICOM CUSTOMERS)

Name: Occupation: 1.Do you have any Landline/Mobile Connection? Yes No 2.How many connections do you have? One Two More than two 3.Are you a RIM subscriber? Yes No 4.Why did you choose RIM? 1) For better services



2) Better Tariff plans



3) Value added services



4) Easily available connections



5. Is there a major difference between the services of RIM and other service providers? Yes No 6.Are you satisfied with the services and facilities of RIM? Yes No 7.What is the average monthly Outgoing call from your connection? 100-200 201-400 401 & above 8.What is your average monthly Bill? 300-500 501-1000 1500 & above

1000-1500

9.Do you have a STD facility? Yes No 10.Are you ready to pay more for Value Added Services? Yes No 11.Would you subscribe to services of other providers in case you get better services? Yes No Thanks

BIBLIOGRAPHY BOOKS Marketing Management -

Phillip Kotler

Marketing Research

Tull & Hawkins

-

MAGAZINE Business Today Advertising & Management Free Press journal NEWSPAPERS Economic Times Hindustan Times Financial express Business standard WEBSITE www.google.com www.coai .in www.auspi .in www.rcom.co.in www.reliancemobile.com

THE RELEVANT INFORMATION FROM THE INTERNAL SOURCE OF THE ORGANIZATION.