Summer project report

On

The Marketing Strategy of Rim Prepaid

Submitted as a project report in partial fulfillment of the degree of

Master of Business Administration

Submitted To: Submitted By:

Ms. Lata Rani Ajay Kumar

MBA 3rd SEM

09272970004

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DECLARATION

I declare that the project report titled “The market strategy of

Rim prepaid” is an original work and this report has not

submitted earlier to this institute/ any other institute for the

fulfillment of requirement of the study. Any part of the project

if found to be invalid/duplicate or in case of plagiarism, I AJAY

KUMAR student of SRI RAM INSTITUTE OF

MANAGEMENT & TECHNOLOGY, GREATOR NOIDA is

ready to face the consequences.

This project is the property of the institute and any use of

project without the written permission of the institute will be

considered illegal.

(AJAY KUMAR)

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ACKNOWLEDGEMENT

A summer training project is an integral part of a MBA. It helps

the student to undergo a simulation test of what the student is

going to face in his future job sphere and a taste of practicality.

It helps the student to understand how an organization works.

The competitive atmosphere, the ups and downs in the cycle of

the organization, the enthusiasm of interacting with newer

people and gaining vast practical knowledge is what a summer

trainee goes through during his/her months in the organization.

My project in Reliance communication is an experience worth

sharing. The summer training project has enhanced my

managerial skills and made me apt to face all the hurdles in my

future.

The vast knowledge that I have gained in these two months

in Reliance Money, I have tried to put them down in this project

report. I am really thankful to Mr. Anuj Kumar srivastava City

Head Allahabad, Reliance Communication for constantly

mentoring my efforts and guiding me for making this project a

success.

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I am greatly indebted to all my family members and friends for

their support and encouragement.

PREFACE

As a student of MBA, one of the most reputed professional courses, I consider it’s my privilege to thank all the persons involved in the working of this project and their supervision and guidance I have been able to complete this project. The attractive feature of the MBA is that along with theory we also get to have the exposure of the practical environment. The entire journey from the very idea of this project report to reality would not have been possible without guidance and support of many people. The Project Report is based on Systematic and Scientific search for pertinent information on Specific Topic.

The Project Report revolves around the telecom industry to explore the various aspects of mobile technology. The certain objectives were predefined and the task was to accomplish them.

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The study was confined geographically to the set of questionnaire was prepared & scrutinized before going for market analysis.

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TABLE OF CONTENTS

Contents Page

1. General Introduction 7

2. Company Profile 15

3. Project Study 22

4. Research Methodology 37

5. Data Preparation 69

6. Finding 107

7. Recommendation & Suggestions 111

8. Conclusion 113

9. Bibliography 115

10.Questionnaire 117

INTRODUCTION6

TO

TOPIC

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, i t is India’s leading integrated telecommunicat ion company with over 85 mil l ion customers.

The Late Dhirubhai Ambani dreamt of a digi tal India - an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly buil t India’s largest private sector company virtual ly from scratch, had stated as early as 1999: “Make the tools of information and communication avai lable to people at an affordable cost . They wil l overcome the handicaps of i l l i teracy and lack of mobili ty.”

I t 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

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December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.

Reliance Communicat ions has a reliable, high-capacity, integrated (both wireless and wirel ine) and convergent (voice, data and video) digital network. I t is capable of del ivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applicat ions, and consulting.Today, Reliance Communicat ions is revolut ionising the way India communicates and networks, truly bringing about a new way of l ife.

RCom’s business encompasses a complete range of telecom services covering mobile and fixed line te lephony. I t includes broadband, nat ional and internat ional long distance services and data services along with an exhaustive range of value-added services and applications.  The company's  constant endeavour is to achieve customer delight by enhancing the productivi ty of the enterprises and individuals i t serve.

Reliance Mobile (formerly Reliance India Mobile), launched on   December 28, 2002, coinciding with the joyous occasion of the la te Dhirubhai Ambani’s 70th birthday, was among the ini t ia l init iatives of Reliance Communications. I t marked the auspicious beginning of Dhirubhai’s dream of ushering in a digital revolut ion in India. Today, we can proudly claim that we were instrumental in harnessing the true power of information and communicat ion, by bestowing i t in the hands of the common man at affordable rates.  

Business area of the company:

The company is mainly engaged into the businesses of, Wireless, Broadband, Rural Communicat ion, Reliance World, IDC, Carrier Business and Infrastructure Business.

Reliance Mobile - With over 85 mill ion subscribers across India, Reliance Mobile is India’s largest mobile service brand. Reliance Mobile services now cover over 20,000 towns, 5 lakh vil lages and counting.

Reliance Mobile World - The Reliance Mobile World suite of Reliance Mobile is a unique Java-based applicat ion. I ts uniqueness l ies in the fact that i t enables complex Internet applicat ion to be introduced in mobile phones effectively and quickly. Reliance Mobile World receives over 1.5 bil l ion page views per month from Reliance Mobile users.

Broadband- The successful roll ing out of real broadband services across the nation marks the second chapter of Reliance Communications’ commitment to usher in a digi tal revolut ion in India.

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E-education

Digital Workplaces

E-healthcare

Integrated Enterprise Solut ion

Rural Communication- Reliance Communications is committed to bringing about a complete revolution in rural telephony. With this goal set high on i ts agenda, i t has ini t ia ted a mammoth expansion plan to reach out to four lakh vil lages across the length and breadth of the country.

Village Public Telephone

Rural Community Phone (RCP)

Rural Household DELs

IDC- Reliance is India 's largest Internet Data Center (IDC) service provider, hosting business crit ical applications of Indian and foreign blue chip companies, f inancial insti tutions and other important organisat ions. Rel iance Internet Data Centers are truly world class Level 3 (highest) IDC facil i t ies, with more than 200,000 sq ft of host ing space.

Reliance World - Reliance World (formerly Reliance WebWorld) is a world-class nat ionwide chain of retail out lets for products and services of the Reliance – Anil Dhirubhai Ambani Group. I t is designed to give the customer a delightful experience of the digital world of information, communication, entertainment and uti l i ty services.

Carrier Business - Reliance Communications is a National Long Distance (NLD) and Internat ional Long Distance (ILD) service provider, rendering national and international transport l inks between other telecommunication service providers' networks. I ts wholesale customers include Indian and internat ional telephony service providers, Internet service providers, long-distance carriers, cal l centre operators, mult inat ional companies, business process outsourcing (BPO) companies, IT-enabled service (ITES) providers and government and quasi-government organisat ions.

Infrastructure Business - RTIL, a subsidiary of Reliance Communicat ions Limited, was incorporated in 2001 as a private l imited company. Reliance Communications Limited (“RCOM”) had fi led a Scheme of Arrangement with the High Court of Judicature at Bombay on December 5, 2006 for the separation of i ts wireless towers assets owned by RCOM and its wholly owned subsidiary Reliance Telecom Limited (“RTL”).   RTIL is an independent wireless telecommunicat ions

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infrastructure company in India, engaged in the business of bui lding, owning and operating communicat ions towers and related assets ( together, “passive infrastructure”), which i t will lease to the wireless operators under long-term contracts .

Dhirubhai Ambani Biography

Born: December 28, 1932Died: July 6, 2002Achievements: Dhirubhai Ambani built India's largest private sector company. Created an equitycult in the Indian capital market. Reliance is the first Indian company to feature in Forbes 500 listDhirubhai Ambani was the most enterprising Indian entrepreneur. His life journey is reminiscentof the rags to riches story. He is remembered as the one who rewrote Indian corporate historyand built a truly global corporate group.Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, atChorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started

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his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar over the weekends.After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He worked thereas a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs50,000 and set up a textile trading company.Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's largest private sectorcompany, Reliance India Limited, from a scratch. Over time his business has diversified into acore specialisation in petrochemicals with additional interests in telecommunications, informationtechnology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics.Dhirubhai Ambani is credited with shaping India's equity culture, attracting millions of retailinvestors in a market till then dominated by financial institutions. Dhirubhai revolutionised capitalmarkets. From nothing, he generated billions of rupees in wealth for those who put their trust inhis companies. His efforts helped create an 'equity cult' in the Indian capital market. Withinnovative instruments like the convertible debenture, Reliance quickly became a favorite of thestock market in the 1980s.In 1992, Reliance became the first Indian company to raise money in global markets, its highcredit-taking in international markets limited only by India's sovereign rating. Reliance alsobecame the first Indian company to feature in Forbes 500 list.Dhirubhai Ambani was named the Indian Entrepreneur of the 20th Century by the Federation ofIndian Chambers of Commerce and Industry (FICCI). A poll conducted by The Times of India in2000 voted him "greatest creator of wealth in the century".Dhirubhai Ambani died on July 6, 2002, at Mumbai.

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INFOCOMM BUSINESS

Relianec Infocomm offers a comple te range of te lecom services such as

mobile and f ixed l ine te lephony including broadband, nat ional and

internat ional long dis tance services , data services and a wide range of

value added services and applicat ions that wil l enhance the productivi ty

of enterprises and individuals .

Reliance India Mobile , the f i rst of Infocomm’s ini t ia t ives was launched

on December 28,2002 the 70 t h b ir thday of Sh. Dhirubhai Ambani .

RELIANCE GROUP

Reliance group founded by Sh. Dhirubhai Ambani(1932-2002),India’s

largest business house with total revenues of Rs.80000 Cr,Cash Profi t

of over Rs.9800 Cr, net profi t of Rs.4700 Cr and Exports over Rs.11900

Cr for the las t f inancial year .

Reliance group of companies consists of : Rel iance Capi tal Ltd. ,

Rel iance Industr ial Infrast ructure Ltd, Rel iance Mutual Fund

Ltd. ,Reliance Infocomm Ltd. ,Reliance General Insurance Ltd.

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COVERAGE

60000 km of opt ic and f ibre backbone tha t connects over 90% of

populat ion.

Wireless network being rol led out in 600+ ci t ies ini t ia l ly wi th plan

to expand to the ent ire mass of India by 2008.

2588 Base t ransreceiver s tat ions (BTS) across the country focussing

wireless network.

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COMPANY

PROFILE

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BOARD OF DIRECTORS

OF

RELIANCE COMMUNICATION

MR ANIL D. AMBANI- CHAIRMAN

Prof. J ramachandran- INDEPENDENT DIRECTOR

MR RAJENDRA P. CHITALE- DIRECTORS

MR C.P. JAIN- ADDITIONALDIRECTOR

KEY EXECUTIVE

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MR V.R. MOHAN- COMPANY SECRETARY AND

MANAGER

Telecommunication

In the middle Ages, chains of beacons were commonly used on hil l tops as a means of relaying a signal. Beacon chains suffered the drawback that they could only pass a single bit of information, so the meaning of the message such as "the enemy has been sighted" had to be agreed upon in advance. One notable instance of their use was during the Spanish Armada, when a beacon chain relayed a signal from Plymouth to London signaling the arrival of Spanish ships.

In 1792, Claude Chappe , a French engineer , bu i l t the f i rs t f ixed v i sual t e legraphy sys tem (or semaphore l ine ) be tween Li l l e and Par is . However semaphore suffered f rom the need for sk i l l ed opera tor s and expens ive towers a t in te rval s of t en to th i r ty k i lomet res (s ix to n ine teen mi les ) . As a resu l t o f compet i t ion f rom the e lec t r ica l t e legraph, the las t commercia l l ine was abandoned in 1880 .

Telegraph and telephoneThe first commercial electrical telegraph was constructed by Sir Charles Wheatstone and Sir Wil liam Fothergi ll Cooke and opened on 9 Apri l 1839. Both Wheatstone and Cooke viewed their device as "an improvement to the [exist ing] electromagnetic te legraph" not as a new device.

Samuel Morse independently developed a version of the electrical telegraph that he unsuccessfully demonstrated on 2 September 1837. His code was an important advance over Wheatstone's signaling method. The first transat lant ic te legraph cable was successfully completed on 27 July 1866, allowing transat lantic te lecommunication for the fi rst t ime.

The conventional te lephone was invented independently by Alexander Bell and Elisha Gray in 1876. [ 6 ] Antonio Meucci invented the first device that allowed the electrical transmission of voice over a l ine in 1849. However Meucci 's device was of l i t t le practical value because i t re lied upon the electrophonic effect and thus required users to place the receiver in their mouth to "hear" what was being said. [ 7 ] The fi rst

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commercial te lephone services were set up in 1878 and 1879 on both sides of the Atlantic in the cit ies of New Haven and London.

Radio and televisionIn 1832, James Lindsay gave a classroom demonstration of wireless telegraphy to his students. By 1854, he was able to demonstrate a transmission across the Firth of Tay from Dundee, Scotland to Woodhaven, a distance of two miles (3  km), using water as the transmission medium. [ 1 0 ] In December 1901, Guglielmo Marconi establ ished wireless communication between St. John's , Newfoundland (Canada) and Poldhu, Cornwall (England), earning him the 1909 Nobel Prize in physics (which he shared with Karl Braun). [ 1 1 ] However small-scale radio communication had already been demonstrated in 1893 by Nikola Tesla in a presentation to the National Electric Light Associat ion.[ 1 2 ]

On 25 March 1925, John Logie Baird was able to demonstrate the transmission of moving pictures at the London department store Selfridges . Baird 's device relied upon the Nipkow disk and thus became known as the mechanical te levision . I t formed the basis of experimental broadcasts done by the Brit ish Broadcast ing Corporation beginning 30 September 1929. [ 1 3 ] However, for most of the twentieth century televisions depended upon the cathode ray tube invented by Karl Braun. The first version of such a te levision to show promise was produced by Philo Farnsworth and demonstrated to his family on 7 September 1927.

Computer networks and the InternetOn 11 September 1940, George St ibitz was able to transmit problems using teletype to his Complex Number Calculator in New York and receive the computed results back at Dartmouth College in New Hampshire . [ 1 5 ] This configuration of a central ized computer or mainframe with remote dumb terminals remained popular throughout the 1950s. However, i t was not unt il the 1960s that researchers started to investigate packet switching — a technology that would al low chunks of data to be sent to different computers without f i rst passing through a centralized mainframe. A four-node network emerged on 5 December 1969; this network would become ARPANET, which by 1981 would consist of 213 nodes.

ARPANET's development centred around the Request for Comment process and on 7 April 1969, RFC 1 was published. This process is important because ARPANET would eventually merge with other

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networks to form the Internet and many of the protocols the Internet relies upon today were specified through the Request for Comment process. In September 1981, RFC 791 introduced the Internet Protocol v4 (IPv4) and RFC 793 introduced the Transmission Control Protocol (TCP) — thus creating the TCP/IP protocol that much of the Internet relies upon today.

However, not al l important developments were made through the Request for Comment process. Two popular l ink protocols for local area networks (LANs) also appeared in the 1970s. A patent for the token ring protocol was fi led by Olaf Soderblom on 29 October 1974 and a paper on the Ethernet protocol was published by Robert Metcalfe and David Boggs in the July 1976 issue of Communications of the ACM . [ 1 7 ] [ 1 8 ]

A basic te lecommunication system consists of three elements:

A transmitter tha t takes information and conver t s i t to a signal ;

A transmission medium tha t ca r r ies the s igna l ; and ,

A receiver tha t rece ives the s igna l and conver t s i t back in to usable informat ion .

For example, in a radio broadcast the broadcast tower is the transmitter , free space is the t ransmission medium and the radio is the receiver. Often telecommunicat ion systems are two-way with a single device act ing as both a t ransmit ter and receiver or transceiver . For example, a mobile phone is a transceiver.

Telecommunication over a telephone l ine is called point-to-point communication because i t is between one transmitter and one receiver. Telecommunication through radio broadcasts is called broadcast communication because i t is between one powerful transmitter and numerous receivers. Analogue or digitalSignals can be either analogue or digital . In an analogue signal , the signal is varied continuously with respect to the information. In a digital signal, the information is encoded as a set of discrete values (for example ones and zeros). During transmission the information contained in analogue signals will be degraded by noise. Conversely, unless the noise exceeds a certain threshold, the information contained in digital signals will remain intact. Noise resistance represents a key advantage of digital s ignals over analogue signals.

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NetworksA network is a collection of transmitters, receivers and transceivers that communicate with each other. Digital networks consist of one or more routers that work together to t ransmit information to the correct user. An analogue network consists of one or more switches that establ ish a connection between two or more users. For both types of network, repeaters on a base stat ion may be necessary to amplify or recreate the signal when i t is being transmitted over long distances. This is to combat attenuat ion that can render the signal indist inguishable from noise.

ChannelsA channel is a division in a t ransmission medium so that i t can be used to send multiple streams of information. For example, a radio stat ion may broadcast at 96.1  MHz while another radio station may broadcast at 94.5 MHz. In this case, the medium has been divided by frequency and each channel has received a separate frequency to broadcast on. Alternatively, one could al locate each channel a recurring segment of t ime over which to broadcast—this is known as t ime-division mult iplexing and is sometimes used in digital communication.

PURPOSEWe are wi tness ing a kind of sea change in IT related product market ing

and among the top companies who are in this f ie ld are RELIANCE

INFOCOMM LTD.

We a l l know that the mobile industry is rapidly growing in our country

and the future of mobile companies are very br ight as we are in the very

thresh hold of mobile revolut ion.

Comparing China we are st i l l far behind the rat io of mobi le phone users

per thousand and the industry i s predict ing tha t there would be over 100

mil l ion mobile phone users in India by year 2008.

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The purpose of the s tudy is to unders tand the competi t ion posed by

various GSM and WILL services providers in U.P. (East) and to analyze

the process of covering the major chunk of the market segments of

Mobi le phone users of the area .

Reliance Infocomm is a major player and fas t becoming a force to

reckon wi th in U.P. (East) a lready is having 3 lac subscribers in the

area .

Aim

To understand the Marketing Mix Strategy of the RIM PREPAID.

Objectives

To analyze the buying behavior of the market segment vis-à-vis

market ing mix s trategy of RIM-PREPAID.

To measure the eff iciency of the market ing mix s trategy of

competi tors for prepaid services .

To analyze the 4 Ps of the af ter launch campaign has prepaid

services.

What are the reasons for the s low growth for prepaid services ?

What are the specif ic buying pat tern of the middle income group?

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Whether the launch of RIM-PREPAID had helped Rel iance improve

thei r market share in the area?

PROJECT

STUDY

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MARKETING STRETEGY OF RIM- PREPAID

ANALYSIS AND EVALUATION

The central miss ion of this project was to analyze the growth of the

Market Share of the Rel iance Infocomm Ltd. By analyzing the market

st rategy in Allahabad ci ty with respect to other service providers of

mobile phones .

The report is ventured upon to give a perspect ive of how the middle

income and the f i rs t t ime Users buy a mobi le phone connect ion and

thei r buying pat tern. The survey inst rument used by us basical ly

consis ts of survey quest ions , which are open and end type in which we

have tr ied to seek responses from the walk-in customers at var ious

out le ts and meeting people a t var ious shopping malls and residentia l

local i t ies .

In a nutshel l I can say that each and every part of the report has been

made in such a way tha t i t covers the ent ire spectrum of re levant facts

and data rela ted to the mobile market in Allahabad.

In spi te of my best effor ts , we fee l tha t the report may admit

possibi l i t ies of fur ther improvement for which I would happy and

grateful to receive suggest ions and advice from my seniors and al l .

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BREIF DESCREPTION OF RIM COMMUNICATION

2008 

January 12 - Rel iance Communications receives Start-up GSM Spectrum

January 16 - Yahoo partners with Reliance Communications to provide Yahoo One Search for i ts 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 - Rel iance Communicat ions offers Lifet ime Validi ty at Rs 199

RCOM’s subsidiary Infratel f i les Draft Red Herring Prospectus with SEBI

 February 5 - Reliance Mobile strengthens i ts religious content portfolio on Mobile by t ie-up with Sadhana TV

 February 14 - RCOM in partnership with CanvasM, launches Mulitplayer Mobile Games

 February 19 - HDFC Bank t ies up with RCOM, turns every Reliance Mobile into a credi t card

 February 27 - Reliance Communicat ions 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

 Apri l 1 - Rel iance Communicat ions forays into IT space, launches Reliance Technology Services Company

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 Apri l 9 - RCOM launches Educational Portal on Reliance Mobile Phones

 Apri l 25 - Reliance Globalcom unit Reliance Infocom BV, Netherlands acquires Global WiMAX Operator eWave World

 Apri l 29 - Reliance Communicat ions Announces Unlimited Free STD calls      

April 30 - Rel iance Globalcom Launches Passport Global SIM

RCOM's Net Profi t up by 70.8% to Rs 5,401 crore

May 2 - Reliance Communications’ Net Profi t up by 70.8% to Rs 5,401 crore (US$ 1,350 mil l ion), Revenues higher by 31.8% to Rs.19, 068 crore (US$ 4,765 mill ion) and EBIDTA increases by 43.3% to Rs.8, 199 crore (US$ 2049 mil l ion)    

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 Communicat ions forge Strategic All iance 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 i ts f inancial results for the fi rst quarter ended June 30, 2008. Net Profit up by 23.9% to Rs. 1,512 crore (US$ 352 mill ion)

2007    

January 10  - Reliance Communications adds a record 1.4 mill ion subscribers in December ‘06  

January 18  - Reliance Communication launches unique 'Simply 2030' plan on Reliance Hello

January 25 - Reliance Communications promotes Roger Waters Music Concert

January 29 - RCOM shareholders approve tower business demerger with a 99.99% overwhelming majori ty

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January 30   - Overwhelming response to Reliance World’s National Digital Elocution Competit ion

January 30 - Rel iance joins Lenovo and Intel for 'Internet on the Move'

February 2 - Rel iance Communicat ions’ market capi talizat ion tops Rs 1 lakh crore ( 1 tr i l l ion rupees or 24.39 bi l l ion US dollars) on Bombay Stock Exchange

February 16  - Reliance Communicat ions offers best value on roaming 

February 26- Search Jobs & Classified Ads from Reliance Mobile World - Reliance Communications t ies up with Naukri.com

March 6 - Rel iance Communications ushers in ‘Virtual Global Conference Network’  

March 7 - DHIRUBHAI AMBANI – THE MAN I KNEW By KOKILABEN Book on Founder Chairman launched.

March 8 - Rel iance Communications launches ‘Roam Jamaica on Reliance Mobile

March 16 - Reliance Mobile launches ' Suno Zee’  

March 19  - Demerger of Passive Infrastructure division Reliance Communicat ions & Reliance Telecom approved by the Bombay High Court

March 21 - Reliance World Offers Program to Help Students ’Crack Admissions in Colleges Abroad’

March 23 - Govt’s Rural Telephone Scheme(RDEL)through Reliance Communications successfully closes by March 31,2007  

March 26 - Booking train t icket from Reliance Mobile Phones becomes more easy now… with ITZ Cash Cards  

April 4 - Reliance Communicat ions unleashes the power of mobile advert ising 

April 6 - Reliance Communicat ions acquires 1.2 mill ion subscribers in March 2007.

April 11 - Sunny Days And Nights For Reliance Mobile Subscribers as Reliance Communications t ies up with SUN TV to offer video streaming of all SUN TV programs online 24x7

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April 11  - Reliance World launches summer e camp for school kids

April 30  - RCOM first l is ted Indian telecom company to reward shareholders  

May 2  - A Classic Bonanza – Reliance Communications unvei ls handsets @ Rs 777

May 9  - RCOM bags West Bengal E-Governance Project

May 10  - Reliance sets a new record, one mill ion Classic handsets sold in just one  

May 12  - Reliance Communications slashes rate to US and Canada. I t 's now just Rs 1.99 per minute  

May 14  - Reliance Communications launches Classic Color Bonanza - Color handsets @ Rs 1234

May 17  - RCOM kick starts world 's fastest and largest rural infrastructure rol lout on World Telecom Day.  

May 18  - Reliance Communicat ions Launches Lifet ime Validity Recharge @ Just Rs.499.  

May 22 - RCOM slashes roaming rates by as much as 70 percent  

May 25 - Reliance Communications launches unlimited cal l ing

June 5 - RCOM hosts seminar on ‘Emerging Trends in Mobile Applications Development’

June 6  - Reliance Communications adds 1.4 mill ion new mobile subscribers in May2007

June 6 - Reliance Classic ' Makes Music - FM Radio Phones Launched at just Rs.1888  

June 27 - Reliance World, BIMTECH & Philadelphia University unveil Executive Program in Retail Management (EPRM)

June 28 - Reliance Communications t ies up with Cisco to launch Business Internet Services for SMEs in Pune

July 4 - Bengali movie ‘Anuranan’ on Reliance Mobile World

July 7 - RCOM and QUALCOMM Collaborate on CDMA2000 Expansion

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July 12 - Reliance Communications awards Alcatel-Lucent a Next-Gen network expansion contract  

July 12 - Reliance Communications awards Huawei all IP Next-Gen network expansion contract

July 19 - RCOM announces sale of equity stake in i ts Tower Company-Reliance Telecom Infrastructure Limited

July 19 - RCOM's AGM on Reliance Mobile World

July 23 - Reliance Communications launches Passport Cal ling Solutions

July 25 - RCOM join hands with Yatra.com for air and hotel bookings

August 20   - RCOM offers 'Live Mandi Prices ' on Reliance Mobile World

August 31 - Rel iance Communications , the official global partner for the fi rst edit ion of ICC Twenty 20 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 Edit ion Smartphone 'Bloomberg Professional ' now on Reliance Mobile

September 11 - Rel iance Communications t ies up with Sulekha.com to offer local search on Reliance Mobile World

September 18  - Strategic partnership with Vanco

October 3 - Reliance Communicat ions announces Classic Celebrations- Classic Handset sales top 10 mill ion- Color Handset @ Rs.999

October 20 - Reliance Communicat ions to launch nationwide GSM Services under existing Unified Access Service Licenses

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

November 7 - Reliance Communicat ions Launches 'Diwali Dhamaka'

November 15   - RCOM launches Rural Mobile Application Contest

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

November 27 - FLAG and GlassHouse ink landmark partnership

December 11 - Reliance Communications adjudged World’s Top CDMA Operator at the Global CDMA Industry Achievements Awards Fete

December 20  - Reliance Communications completes Yipes’ acquisi t ion

December 24 - RCOM announces special offers for Christmas and New Year.

2006        

January 01 - Rel iance Infocomm launches 'One Nation, One Tariff ' to enable Reliance IndiaMobile prepaid users to cal l anywhere in India at Re one per minute.

January 19 - Reliance Demerger adds record Rs.55, 000 Crore to shareholder wealth

January 23 - TIMES NOW launched on Reliance Mobile Phones, making it the world’s f irst TV channel to be launched on a mobile phone.

March 06 - Reliance Communications Ventures Ltd. (RCVL), India 's leading integrated telecommunicat ions company, a member of the Reliance - Anil Dhirubhai Ambani group, l is ts on the Bombay Stock Exchange and National Stock Exchange.March 21

Reliance Infocomm introduces R World in Hindi to become the world 's f irst operator to offer mobile data services in more than one language on the same handset. This will make it possible for mil l ions of Indians to access the popular R World with hundreds of every-day-use applications in the nat ional language.

March 23 - Reliance-Anil Dhirubhai Ambani Group signs up Indian cricket 's whiz kid and heartthrob of mill ions Mahendra Singh Dhoni as the brand ambassador for Reliance Communications Ventures Ltd.

March 29 - Reliance Infocomm becomes India’s f irst telecom operator to launch seamless inter-standard international roaming service - 1World.1Number, with single number on international CDMA and GSM networks.

29

April 27 - Reliance Communicat ions launches India’s f irst Talking Message Service (TMS) enabling i ts mobile users to send voice messages to not only other mobiles but also fixed wireless phones (FWP) and landlines.  

June 22 - Reliance Communications t ies up with Disney to offer on Reliance Mobile World India 's f i rst 3D animation on mobile .  

July 03 - Reliance Communications launches 'Hello Capital Plan' to enable i ts subscribers in 19 state capitals to call each other at the local call rate of 40 paise per minute.

July 19 - Reliance Communications slashes ILD rates by up to 66%

August 7 - T-Com signs contract with FLAG Telecom for Europe-US bandwidth 

September 5 - Union Communicat ions & IT Minister Thiru Dayanidhi Maran inaugurates Reliance Communications’ FALCON Cable System.

November 17   - Reliance Communications launches Free Group Term Life Cover for i ts CDMA subscribers  

December 28  - Reliance Communications’ FLAG Telecom announces FLAG Next Gen to cover 60 countries    

2005        

January 04 - Rel iance introduces fi rst e-recharge facil i ty in CDMA in India.

January 24 - Rel iance IndiaMobile announces mega rural plan to cover 4 lakh vil lages and 65 crore Indians by December 2005.

June 26 - Anil Ambani appointed Chairman of Reliance Infocomm

July 30 - Air Deccan and Reliance WebWorld join hands to offer air t icket booking facil i ty at Reliance WebWorld

August 11 - XLRI's Post-Graduate Certi f icate programme in Logistics Supply Chain Management (PGCLSCM) launched on Reliance WebWorld's virtual classroom platform. fi rst of i ts kind e-learning programme in India.

August 18 - Rel iance Infocomm rolls out internat ional roaming faci l i ty across several countries to become the first Indian CDMA operator to offer i ts customers such a service.

September 06 - Rel iance Infocomm tied-up with the Bombay Stock Exchange to make available l ive stock quotes on i ts mobile phones.

30

September 15 - Reliance Communications, UK launched Reliance IndiaCall service in England and Wales enabling cal lers to make high-qual ity cal ls to India from any landline or mobile phone at economical rates.

September 21 - Apollo Hospital and Reliance Infocomm join hands to provide top class healthcare service to mill ions of Indians in over a hundred Indian ci t ies.

October 13 - Reliance WebWorld wins Frost & Sullivan Market Leadership Award for Video Conferencing services.

November 12 - Reliance Infocomm hosts the 4th global CDMA Operators Summit.

November 22 - Reliance Infocomm joins hands with Indian Airlines to offer India 's f irst mobile booking of domestic airl ine t icket.

November 30 - Reliance Infocomm introduces MOREbile, redefines customer rewarding with 33 % more talk t ime on prepaid recharges of Rs 315 denominat ion and above and much more.

December 12 - Reliance Infocomm and China Telecom sign agreement for telecom services to provide direct telecommunication service, including a global hubbing service, to subscribers in the two countries.

2004        

 January 12 - Internat ional wholesale telecommunicat ions service provider, FLAG Telecom amalgamates with Reliance Gateway, a wholly owned subsidiary of Reliance Infocomm

February 9 - Launches RIM Prepaid with attractive offer - For Rs 3500 get a Motorola C131 mobile phone and Rs 3240 worth of re- charge vouchers instant ly and stay connected for 1 year

February 17 - Rel iance subsidiary Flag Telecom announces FALCON Project - a major new Middle East Loop Terabi ts Submarine Cable System with l inks to Egypt and Hong Kong via India

March 22 - Reliance Infocomm launches multi -player gaming on RIM handsets - a f irst in India

April 05 - Rel iance IndiaMobile introduces International Roaming faci l i ty to 172 countries, 300 networks

31

April 23 - Rel iance Infocomm introduces first ever auction facil i ty on Mobile phones through R World.

May 27 - Reliance Infocomm receives the Most Promising Service Provider of the Year 2003 (Asia Pacific) award at the Asia Pacific Technology Awards inst i tuted by Frost & Sullivan.

June 8 - Reliance Infocomm introduces World Card - a Prepaid International cal l ing card for affordable and convenient ISD calls from India.

July 29 - Announces India 's First MPLS Global VPN Solut ion in partnership with MCI

August 5 - Launches the first regional Customer Contact Centre in Chennai

September 6 - Mukesh D. Ambani, Chairman, Reliance Infocomm, receives Voice & Data 'Telecom Man of the Year ' award

September 9 - Introduces Railway Ticket booking from R World data applications suite of Reliance IndiaMobile

October 12 - Mukesh Ambani voted the world’s most infuential telecom person by UK-based publication Total Telecom.

October 19 - Reliance Infocomm bags the CDMA Development Group's 3G CDMA Industry Achievement Award for Internat ional Leadership.

2003  

January 15 - Introduces Dhirubhai Ambani Pioneer Offer for Reliance IndiaMobile service

February 14 - Launches Reliance WebWorld in top 16 ci t ies

March 31 -Launches International Long Distance Services

April 3 - Commissions all backbone rings

April 25 - Introduces colour handsets

May 1 - Launches Reliance IndiaMobile Service commercially in top 92 ci t ies with one mill ion customers.

June 10 - Launches India 's f i rst wireless Point of Sale (POS)

July 1 - Introduces 'Monsoon Hungama' Offer: Instant multimedia mobile phone and connect ion for just Rs 501.

32

Sets world record - acquires one mill ion customers in 10 days

July 3 - Launches R Connect Internet connect ion cable

Aug 26 - Introduces Reliance IndiaPhone Fixed Wireless Phone and Terminal

September 20 - 'Navratri ' a data service in R-World posts a world record of 10 mill ion downloads on the fi rst day of the launch.

September 30 - R World clocks a phenomenal 1 bi l l ion hits in 1 month

October 6 - Launches integrated broadband centre at Rel iance WebWorld, Bangalore

October 24 - Deploys pi lot of Home Netway in Mumbai

October 30 - Reliance becomes India 's largest mobile service provider within 7 months of commercial launch

November 3 - Customer base touches 5 mil l ion

November 12   - Migrates to Unified License Regime

November 16 - Launches National Roaming

November 21 - Launches International SMS to 159 countries launched

December 19 - Adds 4500th Contact Centre Executive

Contact Centre becomes the largest such faci l i ty deployed by any single Indian Service Provider

2002    

January 15 - First Base Transceiver Station (BTS) made 'Ready for Electronics'

February 25 -Obtains International Long Distance License from Govt. of India

December 22 - Commissions 1st Optic Fibre Backbone ring

December 24 - Establishes 1st Point of Interconnect (POI) in New Delhi

December 27 - Hon'ble Prime Minister of India, Atal Behari Vajpayee e-inaugurates Reliance Infocomm

Hon'ble Union Minister for Parliamentary Affairs, Information Technology and Communications, Pramod Mahajan, inaugurates NNOC

33

2001 -May 1- First Media Convergence Node made 'Ready for Electronics' at Jaipur

2000 -May 10 Optic fibre laying process commences in Gujarat, Andhra Pradesh & Maharashtra

1999- The Dream, 1999

'Make a phone call cheaper than a postcard and you will usher in a revolutionary transformation in the lives of millions of Indians' - Dhirubhai Ambani

 The Reality, November 15 - Reliance Infocomm begins Project Planning

Achievements/ recognition:

First to launch BlackBerry 8830 World Edition Smartphone in India

Reliance Communications' Flag Telecom Awards U.S. Dollar 1.5 Billion (Rs 6000 Crore) Turnkey Contract To Construct Flag Next Generation Network Submarine Cable

Reliance BIG TV expands channel bouquet with 10 new channels

Reliance Communications clocks 11.3 million new subscribers in January - March

Reliance Communications adds a record 3.3 million wireless customers in February 2009

Reliance Communication launches 'Netconnect Broadband Plus' - India's fastest wireless Internet service

Reliance Communications adds a record 5 Million New Subscribers in January 2009

Reliance Mobile enhances value proposition for its GSM customers with Lifetime offer  

Reliance Mobile launches GSM Services in Delhi

RCOM launches Unique Customer Experience Programme

RCOM first listed Indian telecom company to reward shareholders

Reliance Infocomm becomes India’s first telecom operator to launch seamless inter-standard international roaming service - 1World.1Number, with single number on international CDMA and GSM networks.

Reliance Infocomm introduces first ever auction facility on Mobile phones through R World.

34

Reliance Infocomm bags the CDMA Development Group's 3G CDMA Industry Achievement Award for International Leadership.

Introduces Railway Ticket booking from R World data applications suite of Reliance IndiaMobile

Reliance Infocomm receives the Most Promising Service Provider of the Year 2003 (Asia Pacific) award at the Asia Pacific Technology Awards instituted by Frost & Sullivan.

Reliance Infocomm introduces World Card - a Prepaid International calling card for affordable and convenient ISD calls from India.

Announces India's First MPLS Global VPN Solution in partnership with MCI

Launches India's first wireless Point of Sale (POS)

Competitors

CompanySales(Rs.Million)

CurrentPrice

Change (%)

P/E Ratio

MarketCap.(Rs.Million)

52-WeekHigh/Low

Bharti Airtel 340142.90 315.75 -1.28 13.38 1214420.02 495/230

Reliance Comm. 150866.60 176.60 -2.54 8.82 374001.67 359/131

Idea Cellular 98570.80 57.15 -1.80 15.41 180425.54 92/41

Tata Communications

37494.30 342.00 0.48 22.70 96999.75 651/336

Tata Teleservice 19416.80 26.60 -0.37 0.00 50655.16 42/19

MTNL 44559.99 74.15 -0.67 0.00 47029.50 124/59

Spice Comm 15804.77 62.40 -0.79 0.00 43396.28 95/26

35

GTL Infrastructure

2462.84 37.85 1.75 0.00 35388.31 50/28

Tulip Telecom 16082.83 942.00 0.33 9.67 27228.10 1250/258

HFCL Infotel 2235.71 6.07 -0.16 0.00 3722.54 15/5

IOL Netcom 371.26 27.30 -1.44 0.00 758.02 58/23

Southern Online Bio.

394.78 22.65 4.86 47.49 706.62 27/7

Dhanus Technology

1951.72 31.40 -1.41 7.74 571.47 46/12

HathwayBhawani Cable

123.84 13.59 3.35 44.20 105.20 19/5

Esskay Telecom 149.64 3.27 0.00 0.00 65.40 3/3

Integ. Digital Info19.50 3.35 2.45 0.00 48.98 5/2

Munoth Comm 0.06 4.00 -1.23 0.00 38.60 8/3

Vital Communication

0.32 0.82 1.23 0.00 30.76 2/1

36

RESEARCH METHOLOGY

RESEARCH METHODOLOGY

37

Research methodology forms an important par t of any research

projec t . I t i s a way to systemat ical ly solve the research problem. Two

considera t ions for research methodology under research report a re

(1) RESEARCH DESIGN.

(2) SECONDARY DATA .

Research Design

The funct ion of research design is to provide the col lec t ion of

relevant evidence wi th minimal expendi ture of effor ts , t ime & money.

The research design used here i s explora tory in nature, very f lexible &

judgmental in order to study the products and services provided by the

RELIANCE MONEY .

SECONDARY DATA:- I t was col lected through the Internet ,

Magazines, Newspapers and Corporate Profi le .

Data Collection Tools:

The main methodology used was “ Descript ive Design”, with i ts main

tools being the

Discussion Guidel ines

Quest ionnaire

Personal interviews

Sample Size:

38

I t could be very di ff icul t and t ime consuming to col lec t data from whole

populat ion, so accordingly the sample s ize of 150 has been taken

through careful design and analysis , for this study purpose.

I have used two types of research methodology for the survey, viz . ,

Literature Search

Literature Search involves var ious pr inted mater ials and websi te . In the

l i terature search I t r ied to f ind out what Reliance te lecom is offer ing to

i ts potent ia l customers.

In the l ive quest ionnaire survey I had met wi th walk-in customers,

Reta i lers, general publ ic , profess ionals and students .

The purpose for the quest ionnaire survey is to assess the customer

expectat ions from Reliance te lecom vis-à-vis market ing s trategy

implemented.

The quest ionnaire survey helps in unders tanding the l ive customers as

we general ly f ind tha t these survey are very nearly f i l l the purpose of

the project .

The data col lec ted here is of pr imary in nature. The various responses ,

which were col lec ted by visi t ing Rel iance WebWord off ices & on

various retai l out lets of Reliance te lecom at di fferent regions of

Al lahabad are accumulated. The researcher himself f i l led the form af ter

asking the quest ions from the quest ionnaire in ei ther st ructured or

unst ructured way wi thout indulging in to te l l ing the respondents that he

is f rom Rel iance so that the responses should be free from biases .

39

I have visi ted to 45 retai l out lets and 2 web world off ices where the

customers walk-in and interviewed 1500 respondents . These

respondents are basical ly very much aware about the services being

offered by the Reliance telecom and mostly are aware about the

PREPAID services.

I have interviewed 550 respondents on the same quest ionnaire from

various st reet of the society those who normally having mobi le se ts or

are wil l ing to buy one belonging to the lower income group, l ike

students , smal l businessmen, mi lkman, , small t raders , Teashop owners,

Mesons, housewives , landl ine owners etc .

On the very basis of the interviewing respondents a t var ious points of

purchases and local i t ies of Allahabad based on the quest ionnaire data

are col lec ted and analysis is done.

I have divided the data according to the quest ions in three ca tegories: -

Walk-in respondents of Rel iance web world off ices

Walk-ins respondents in Rel iance Reta i l Outlets

Common Marketers

I have calculated in the form of %age of responses rece ived from each

respondents and accordingly bar chart is made for the easy

class if icat ions and f indings to come to cer ta in conclusions.

PREPAID MARKET SEGMENTS

40

Most prepaid users are cost conscious .

Flexibi l i ty Seekers

Low Budget users

Credit Challenged Users

Temporary Users

Factors tha t a t t ract these segments

The ease of entry

The recharge voucher f lexibi l i ty

Prepaid- gives control and convenience

41

Pay the money upfront through recharge vouchers and get cer tain f ixed

talk t ime and data usage for a given period. As we use, charges get

deducted –online, real t ime.

Self service to ensure that a l l customers needs are jus t a few buttons

away.

PREPAID OPERATION ORGANISATION

Prepaid sales and dis tr ibut ion

IN Opera t ions and Maintenance

Prepaid Revenue Operat ions

Prepaid Contact Central Desk

SUPPORT GROUP

42

Product Management

Centra l Logist ics

Commercia l

Procurement

IN OPERATIONS & MAINTENNACE

43

TECHNICAL SUPPORT FROM THREE GROUPS

-EWC (Engineering and Planning)

-NNOC (24 X 7 Monitor ing and Maintenance)

-ITC (All Upgrades and New Developments)

PREPAID REVENUE OPERATIONS44

Consists of three groups

-Recharge card operat ions: recharge cards product ion and supply chain

management

-IN tar if f operat ion: a l l tar i f f plan configurat ions, ta r i f f table

maintenance and tes t ing

-Resolut ion desk: c losing various t rouble t ickets rela ted to cal l charges ,

recharge credi ts and prepaid account problems.

PREPAID CONTACT CENTER

45

- 24 X 7 contac t center support for prepaid

- Wil l handle al l cal ls specif ic to prepaid (bi l l ing, data ,

network and handset )

- Mul t i l ingual

- Local support through FSD

MARKETING MIX

46

The idea of market ing mix was f i rs t conceived by Prof . Nei l H. Bordon

of Harvard Business School , according to him “the market ing mix refers

to the apport ionment of effor ts , the combinat ion, the designing and the

integrat ion of the elements of the market ing into a program or mix

which on the basis of an appraisa l of the marketing force wi l l bes t

achieve the objec t ives of an enterprise a t a given t ime.”

The market ing mix is a very important concept in present market ing

environment .

McCarthy has popular ized a four-factor classi f ica t ion of these tools

cal led

FOUR Ps:

Product , place, pr ice and promotion.

There are various types of tools within these four Ps.

47

Product : Variety, Quali ty , Design, Features, Brand name, Packaging,

Sizes , Services , Warrant ies , Returns .

Price: List pr ice, Discounts, Allowances , Payments, and Credit Terms

Place: Channel , Coverage, Assortments, Locat ion, Inventory, Transport

Promotion : Sales Promotion, Advert is ing, Sales Force, Public Relat ion,

Direct

MARKETING MIX STRATEGY

48

Promotion Mix Offer Mix

Reliance has planned in market ing mix in such a way tha t Product ,

place, pr ice and promot ion compliments each other . The product i s

49

CompanyProductServicesPrices

Advertising Sales Promotion Sales Force Public RelationDirect Marketing

Distribution Channel

TargetCustomer

targeted to the middle and lower income group segment , the pr ice is

kept to sui t to the pockets of lower income group of the middle class

segment , whi le the sa les promot ion schemes are launched to induce f i rs t

t r ia l . The main thrust area is that i t should be avai lable a t the maximum

reta i l out lets .

RIM brand has been s trategical ly launched al l over country and has

been accepted by i t s target customers very successful ly .

50

THE BUYING DECISION PROCESS

We have to go beyond the var ious inf luences on buyers and develop an

unders tanding of how customers actual ly make their buying decis ions so

we must ident ify who makes the buying decisions, the type of buying

decisions and the s teps in buying decision.

For many a product i t is very easy to ident ify the buyer but in case of

mobile phone set and the kind of services required from various GSM

and WILL services avai lable there involved a decision making unit

consis t ing of more than one person.

We can f ind f ive roles people might play in a buying decis ion:

Ini t ia tor : a person who f irs t suggests the idea of buying the par t icular

product or services .

Inf luencer: a person whose views or advice carr ies some weight in

making the f inal decis ion.

Decider: person who decides on any components of a buying decision,

whether to buy, how to buy, where to buy, what to buy.

Buyer: the person who makes the ac tual purchase.

User : person who consumes or uses the product or services .

51

Reliance Infocomm needs to ident ify these roles because they have

impl ica t ions for designing the product , determining the message, and

al locat ing the promotional budget . Knowing the main part ic ipant and

thei r roles helps Rel iance f ine tune i t s market ing program.

Types of Buying Behavior

Consumer decis ion making varies with the type of buying decis ion.

Complex and expensive purchases are l ikely to involve more buyer

del iberat ions and more par t ic ipants .

There are mainly four type of buying behavior viz .

52

1-Complex Buying Behavior:

When the consumer i s highly involved in a purchase decision and is

signif icant ly aware about the di fferences among the brands. This type

of behavior is most ly seen when the product is expensive and bought

infrequently, r isky and highly self-expressive. Buyer learns about the

product and then thoughtful purchase is made.

The marketer has to develop the s tra tegies that ass is t the buyer in

learning about the at t r ibutes about the product c lass and thei r rela t ive

importance .

2-Dissonance Reducing Buying Behaviors:

In this case the buyer i s highly involved and sees l i t t le differences

among the brand avai lable , buyer wil l shop around to learn what i s

avai lable but purchase is quick because brand difference is not

pronounced. Here the market ing communicat ion should aim to supply

bel iefs and evaluat ions that help the consumer feel good about his or

her brand choice.

53

3- Habitual Buying Behavior:

Many products are bought because of low consumer involvement and

the absence of s ignif icant brand differences , i .e . , the brand is bought

because of habit not because of brand loyal ty, and such are inexpensive

products and frequently purchased products . The consumer behavior in

such cases does not pass through the normal be l iefs/at t i tude/convic t ion

sequence. The consumer buys the product because they are famil iar with

the brand and not because they form st rong at t i tude towards the

product . In such case the marketer should use the sales promotion as an

incentive to product t r ia l and the repeat advert i sements in te levis ion

and pr int media.

54

4-Variety Seeking Buying Behavior:

Some buying s i tuat ions are character ized by low consumer involvement

but s ignif icant brand differences . Here consumers are of ten observed to

do lot of brand switching which occurs for the sake of var iety rather

than dissat isfact ion. In this case the market ing st rategy for the market

leader and the chal lenger wil l be di fferent . The market leader wil l t ry

for the habitua l buying by frequent reminder of the advert isements and

the chal lenger wil l offer var ious schemes and encourage trying some

thing new.

55

Stages in Buying Decision

Consumer pass through f ive stages in buying a product:

Problem recognit ion

Informat ion search

Evaluat ion of al ternat ives

Purchase decision

Post purchase decision

56

Need Recognition

InformationSearch

Evaluation of Alternatives

Purchase Decision

Post Purch-ase Decision

Five- Stage Model of the Buying Process

Need recognition:

The buying process star ts when the buyer recognizes a problem or need.

The need can be t r iggered by the external and internal st imul i . The

marketer needs to ident ify the circumstances tha t t r igger a par t icular

need. By gathering information from the no. of customer the marketer

can identi fy the most f requent s t imuli that spark an interes t in a product

category and formulate st rategies that t r igger the interes t .

Information Search:

An aroused customer wil l be incl ined to search for more information

from various sources ,viz . , personal sources , commercial sources,

public sources , experimenta l sources .

The rela t ive amount and inf luence of these information sources var ies

wi th the product category and with the buyer character ist ics . Through

gathering informat ion the customer learns about competing brands and

thei r features. The marketer should ident i fy and evaluate the importance

of each source .

57

Evaluation of Alternatives:

There is no simple and single evaluat ion process tha t is used by al l

consumers and or even by one consumer in al l buying s i tua t ions .

Product judgment i s largely on conscious and ra t ional basis . Consumer

sees each product as bundle of a t t r ibutes with varying capabil i t ies of

del iver ing the sought benefi t s and sat isfying this need. The marketer

can segment the market according to the at t r ibutes that a re relevant

to different consumers.

The consumer is l ikely to develop a set of brand bel iefs about where

each brand stands on each a t t r ibute . The brand bel iefs make up the

brand image. The marketer could redesign the product , a l te r bel iefs

about the brand, a l ter be l iefs about the competi tor brand, cal l a t tent ion

to neglected at t r ibutes or shif t the buyer’s ideals .

58

Purchase Decision:

In the evaluat ion stage the consumer forms preferences among the

brands in the choice se t . The consumer may also form the purchase

intent ion to buy the most preferred brand.

A consumer decision to modify, postpones or avoid a purchase decision

heavi ly inf luenced by perceived r isk. A consumer who decides to

execute a purchase.

intent ion wil l be making up to f ive sub decis ions viz .Brand decis ion,

Vendor decis ion, Quant i ty decision, Timing decis ion, payment method

decision.

59

Post Purchase Decision :

What def ines tha t the buyer i s sat isf ied or not! The buyer sat isfact ion is

a funct ion of the closeness between the buyer’s product expectat ions

and the product’s perce ived performances. I f the product performances

fal l s short of the customer expectat ions the customer is disappointed , i f

i t meets the expectat ions the customer is sat i sf ied, i f i t exceeds the

performances the customer is del ighted. These fee l ings decides whether

the customer wil l buy the product again or not and talk favorably or not

to others.

Identifying the Market Segment:

Whenever the market for a product or service consis ts of two or more

buyers the Market is capable of being segmented i .e . divided into

meaningful buyer groups. The purpose is to determine differences

among buyers, which may be consequentia l in choosing away them or

market ing to them. The customers are too numerous, var ied, and

dispersed in their buying behavior and requirements . The company

ins tead of compet i t ive everywhere, of ten against superior odds, needs

to ident ify the most a t t rac t ive market segments that i t can serve

effec t ively.

The market consists of buyers and buyers differ in one or more

respects.

60

Major segmentation variables for mobile market

Geographic

Region

State Size

City Size

Densi ty

Climate

Demographic

Age

Sex

Family Size

Income

Family Life Cycle

Occupat ion

Education

Psychographic

Social Class

Lifestyle

Behavioral

61

Occasions

Benefi ts

User Sta tus

Usage Rates

Loyal ty Status

Readiness Stage

Atti tude towards product

Selecting the Market Segments

After evaluat ing different market segments the company hopes to f ind

one or more market segments worth enter ing. The company must

decide which and how many segments to serve . There are f ive pat terns

of se lec t ing the target market .

Single Segment Select ion

Selec t ive Special iza t ion

Product Special izat ion

Market Special izat ion

Full Market Coverage

Determinants of Customer Added Value

After analyzing the market segments and the company s tra tegies for

se lec t ing the market segment we need to analyze the values of ITC

brand John Players that play an effect ive role on how the customer

perce ives the brand.

62

PRODUCT VALUE

IMPLEMENTATION OF MARKETING STRATEGY

63

SERVICE VALUE

PERSONAL VALUE

MONETARY VALUE

TIME COST

ENERGY COST

PSYCHIC COST

TOTAL CUSTOMER VALUE

TOTAL CUSTOMER PRICE

TOTAL DELIVERED VALUE

Reliance Prepaid Branding

Brand to be cal led RIM Prepaid

Rationale : a short t rendier name

Imagery: young, t rendy and inspirat ional , but would ref lect the

confidence to emotional ly connect wi th the consumer.

RIM Prepaid Brand Posit ioning

Brand is posi t ioned on the Confidence plat form.

Appeals to a l l consumers segments

Unique in the category

RIM prepaid to own this- both at a Rational and Emot ional level .

Confidence is a relevant category proposition

The brand proposition

Much l ike my confidence in my own capabil i t ies, I have confidence only

in RIM Prepaid to offer me the best va lue and to del iver what i t

promises . This proposi t ion is supported by product offer ings

Handsets , Best cal l ra tes , Maximum card val idi ty

RIM Prepaid Launch Plan

64

1. Retail Visibility

Shop Signage’s

Dist inct ive looks,

6-L square feet s ignage is provided to retai lers

Display Contests are run among re tai lers

2. Mass Media

TV

Press

Outdoor

Radio FM

Cinema

3. Below –the – line activities

Road shows, kiosks , joint promotion

Dist r ibutor launch events

4. Co-branded campaign with Motorola

Posters

Buntings

Flex wall hangers

Role of various communication media

65

TV – Primari ly brand bui lding, plus a bi t of va lue proposi t ion

Press – Primari ly value proposi t ion

Radio - Value Proposi t ion

Outdoors – Brand Building and Value Proposi t ion

Collateral – Brand Building Posters , Buntings , Danglers , Backing

Sheet , Shel f St r ips , Leaflet Dispersers , Sun Boards , Cut outs

Collaterals – Value Proposi t ion Brochures , Posters , Buntings , Tent

Cards

Signage – Brand Sal ience

ADVANTAGES OF PREPAID

66

WIN –WIN FOR CUSTOMERS

LOW MONTHLY SPEND

NO DEPOSITS

CONTROL ON COSTS

FLEXIBILITY

WIN –WIN FOR OPERATORS

LOWER SERVICE COST PER SUBSCRIBER – NO COST OF

BILLING & COLLECTION

CASH UP-FRONT - NO BAD DEBTS

SATISFIED CUSTOMERS

WIN –WIN FOR CHANNEL PARTNERS

CONTINUOUS REVENUE GENERATOR

LOW INVESTMNET IN SPACE / LOGISTICS

LOW SELLING EFFORT – A MARKET PULL PRODUCT

SELLING EFFORT ONLY FOR ACQUISITION –RECHARGE

CARDS SALES A BY PRODUCT

THE RESEARCH PROCESS:-

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Conceptualization

DATA68

Identification of the problem

Extensive Literary Search

Working Hypothesis

Research Design

Sample Design

Data Collection

Analysis of the Data

Findings & Conclusions

Documentation

PREPARATION

69

INTERPRETATION OF DATA ON THE BASIS OF

THE QUESSIONAIRE AND LOCATIONS

Question no. –1- ARE YOU A CELL PHONE USER?

Location Yes NoWeb world offices 90% 10%Retailers 69% 31%Common Marketers 46% 54%

(nearest %age)

70

Question –2-WHICH SERVICE PROVIDER DO YOU USE?

Location Reliance Hutch BSNLWeb world offices 33% 46% 31%Retailers 16% 40% 44%Common Marketers 20% 55% 25%

(Nearest %age)

71

UESTION NO-3-ARE YOU SATISFIED WITH THE EXISTING SERVICE PROVIDERS?

Location Excellent Very good Good Satisfactory UnsatisfactoryWebworld 0% 10% 33% 30% 27%Retailers 0% 10% 15% 20% 55%Common Marketers

0% 5% 45% 25% 25%

(Nearest %age)

72

Question no.-4- DO YOU WANT TO CHANGE FROM EXISTING SERVICE PROVIDER?

Location Yes No Can not sayWeb world offices 10% 85% 5%Retailers 60% 30% 10%Common Marketers 25% 30% 45%

(Nearest %age)

Question no.-5- ARE YOU USING PRE-PAID OR POST-POST?

73

Location Postpaid PrepaidWeb world offices 85% 15%Retailers 40% 60%Common Marketers 40% 60%

(Nearest %age)

Question no.-6- ARE YOU INTERESTED IN OPTING FOR PREPAID?

74

Location Yes No Yet to decideWeb world offices 60% 30% 10%Retailers 70% 20% 10%Common Marketers 40% 30% 30%

(Nearest %age)

75

Question no.- 7-ARE YOU INTERESTED IN OPTING FOR RELIANCE PREPAID?

Location Yes WANT MORE INFOTMATIONWeb world offices 80% 20%Retailers 90% 10%Common Marketers 50% 50%

(Nearest %age)

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Question no.-8- WHY DO YOU WANT TO OPT FOR THE PREPAID?

Location Easy Affordabilityavailability

Ease of entry

Web world offices 50% 30% 20%Retailers 90% 10% 0%Common Marketers 60% 30% 10%

(Nearest %age)

77

Question no.-9-WHAT ARE YOUR CALL CHARGES PREFERENCES?Reliance: Rs.1.00 per minHutch: Rs.2.49 per min.BSNL: Rs.2.40 per min.

ALL RESPONDENTS HAVE SAID TO PREFER RELIANCE CALL CHARGES.

78

Question no.10-DO YOU PREFER THE R-WORLD SERVICES OFFERED BY RELIANCE?

Location Excellent Important Not requiredWeb world offices 60% 20% 20%Retailers 50% 25% 25%Common Marketers 40% 30% 30%

(Nearest %age)

79

Question no.11-WHAT YOUR EXPECTATIONS FROM THE RELIANCE PREPAID SERVICES?

Location Low Tariff Affordability Roaming HandsetWebworld 80% 10% 5% 5%Retailers 85% 15% 0% 0%Common Marketers

60% 20% 10% 10%

(Nearest %age)

Our new marketing focus, made explicit in this plan, renews our vision and strategic

focus on adding value to our target market segments, the small business and high-end

home office users, in our local market.

American Technology will change its focus to differentiate itself from box pushers and

improve the business by filling the real need of small business and high-end home office

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for reliable information technology including hardware, software, and all related services.

Our marketing challenge is to position our product and service offerings as the high-

quality, high value-add alternative to box pushing in a vacuum.

Product 1997

GEN $1,372,500

Systems $3,293,500

Service $380,000

Software $799,250

Training $113,000

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Totals $5,958,250

1.1 Vision

AMT is built on the assumption that the management of information technology for

business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in

that it is not inherently a do-it-yourself prospect. Smart business people who aren't

computer hobbyists need to find quality venof reliable hardware, software, service, and

support. They need to use these quality vendors as they use their other professional

service suppliers, as trusted allies.

AMT is such a vendor. It serves its clients as a trusted ally, providing them with the

loyalty of a business partner and the economics of an outside vendor. We make sure that

our clients have what they need to run their businesses as well as possible, with

maximum efficiency and reliability. Many of our information applications are mission

critical, so we give our clients the assurance that we will be there when they need us.

1.2 Objectives

1. Increase sales by 20%

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2. Increase gross margin to more than 25%.

3. Increase our non hardware sales to 65% of the total.

2.0 Target Markets

AMT focuses on small business in the local market, with special focus on the high-end

home office and the 520unit small business office.

Market 1997 1998 1999 2000 2001 Total

Home

Office

$25,000,0

00

$27,500,0

00

$30,250,0

00

$33,275,0

00

$36,602,5

00

$152,627,5

00

Small

Busine

ss

$50,000,0

00

$52,500,0

00

$55,125,0

00

$57,881,2

50

$60,775,3

13

$276,281,5

63

Totals $75,000,0

00

$80,000,0

00

$85,375,0

00

$91,156,2

50

$97,377,8

13

$428,909,0

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2.1 Market Definition and Segmentation

We have broken our markets into groups according to standard classifications used by

market research companies: home offices and small business.

Exact definitions of these market segments is not necessary for our marketing planning

purposes here; general definitions will suffice. We know our home office customers tend

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to be heavy users, wanting high-end systems, people who like computing and computers.

The low-end home office people buy elsewhere. We also know that our small business

customers tend to be much less proficient on computers, much more likely to need and

want handholding, and much more likely to pay for it.

2.2 Target Market Segment Strategy

We cannot survive just waiting for the customer to come to us. Instead, we must get

better at focusing on the specific market segments whose needs match our offerings.

Focus on targeted segments is the key to our future.

Therefore, we need to focus our marketing message and our product offerings. We need

to develop our message, communicate it, and make good on it.

2.3 Target Market: Home Office

The home offices in Tin town are an important, growing market segment. Nationally,

there are approximately 30 million home offices, and the number is growing at 10% per

year. Our estimate in this plan for the home offices in our market service area is based on

an analysis published four months ago in the local newspaper.

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Home offices include several types. For our plan, the most important are the home offices

that serve as the only offices of professional firms. These are likely to be professional

services such as graphic artists, writers, and consultants, also some accountants and the

occasional lawyer, doctor, or dentist. There are also individuals who maintain home

offices for part-time use, including "moonlighters" and hobbyists. This segment is not

who AMT wishes to sell to; our marketing focus consists of professionals and

entrepreneurs who maintain a full-time office. In this plan, we will refer to customers in

the home office segment as HOs.

2.3.1 Needs and Requirements

Our target HOs are on average as dependent on reliable information technology as any

other businesses. They care more about reliable service and confidence than about the

rock-bottom lowest price. They don't want to rely solely on their own expertise, so they

choose instead to deal with us with our promise of service and support when needed.

Our standard HOs will be one system installations, no networks, much more powerful

systems than the average small business. Fax modems, voicemail, and good printers are

likely. They tend to be interested in desktop publishing, accounting, Internet, and

administration software as well as their job specific software needs.

It's important that we realize we won't be selling to the price oriented HO buyers. We'll

be able to offer an attractive proposition to the service oriented and security oriented

buyers only.

2.3.2 Distribution Channels

Unfortunately our HO target buyers may not expect to buy with us. Many of them turn

immediately to the superstores (office equipment, office supplies, and electronics) and

mail order to look for the best price, without realizing that there is an option that provides

greater value for dollars.

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2.3.3 Competitive Forces

Our focus group sessions indicated that our target HOs consider price but they would buy

on quality service if the offering were positioned correctly. Price is the message they're

exposed to again and again; they have been trained to shop on price. We have very good

indications that may would much rather pay 1020% more for a relationship with a long-

term vendor providing backup and quality service and support; they end up in the box

pusher channels because they aren't aware of the alternatives.

Availability is also very important. The HO buyers tend to want immediate solutions to

problems. Consequently, they can be subjected to high-pressure, under-trained

salespeople who may not be able to factor in all of a customer's needs.

2.3.4 Communications

One of the best places to reach the target HO is the local newspaper. Unfortunately, that

medium is saturated with pure price only messages, and we'll have to make sure that our

message is accurately stated.

Radio is potentially a good opportunity. Our HO target buyers listen to local news, talk

shows, and sports. Sponsoring a technology discussion/callin talk show is a possibility.

Seminars are a tough sell. The target HO buyer rarely has time for seminars. They think

most seminars are low content sales pitches, and many times they are correct. The

challenge here is to communicate how our information adds value to their enterprise

while selling our organization in a subtle, indirect fashion.

2.3.5 Keys to Success

The main key to success with HO buyers is making the product and marketing

positioning clear. Many potential buyers would much prefer our offering to the box only

offerings of the chain stores and mail order sources, if only they possessed adequate

information to conduct a value-add cost/benefit analysis.

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Word of mouth is critical in this segment. We will have to make sure that once we gain a

customer, we never lose them. To help accomplish this, we must work to reinvigorate

relationships through successful database marketing, among other means.

We must always remember to sell the company, not the product. They have to understand

they are taking on a relationship with AMT, not just buying boxes. Boxes they can get

cheaper elsewhere.

2.4 Target Market: Small Business

Small business in our market includes virtually any business with a retail, office,

professional, or industrial location outside of someone's home, and fewer than 30

employees. We estimate 45,000 such businesses in our market area.

The 30employee cutoff is arbitrary. We find that the larger companies turn to other

vendors, but we can sell to departments in larger companies, and we shouldn't be giving

up leads when we get them.

2.4.1 Needs and Requirements

Our target SBs are very dependent on reliable information technology. They use the

computers for a complete range of functions beginning with the core administration

information such as accounting, shipping, and inventory. They also use them for

communications within the business and outside of the business, and for personal

productivity. They are not, however, large enough to have dedicated computer personnel

such as the MIS departments in large businesses. Ideally, they come to us for a long-term

alliance, looking to us for reliable service and support to substitute for their in-house

people.

These are not businesses that want to shop for rock-bottom price through chain stores or

mail order. They want to be sure they have reliable providers of expertise.

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Our standard SBs will be 520 unit installations, critically dependent on local area

networks. Backup, training, installation, and ongoing support are very important.They

require database and administrative software as the core of their systems.

2.4.2 Distribution Channels

The SB buyers are accustomed to buying from vendors who visit their offices. They

expect the copy machine vendor, office products vendors, and office furniture vendors, as

well as the local graphic artist, freelance writer, or whoever, to come visit their office to

make their sales.

There is usually a lot of leakage in adhoc purchasing through local chain stores and mail

order. Often the administrators try to discourage this, but are only partially successful.

2.4.3 Competitive Forces

The SB buyers understand the concept of service and support, and are much more likely

to pay for it when the offering is clearly stated.

There is no doubt that we compete much more against all the box pushers than against

other service providers. We need to effectively compete against the idea that business

should buy computers, the heart of their business, as plug-in appliances, that don't need

ongoing service, support, and training.

2.4.4 Communications

One of the best places to reach the target SB is the local newspaper. Unfortunately, that

medium is saturated with pure price only messages, and we'll have to make sure that our

message is excellently stated.

Radio is potentially a good opportunity. Our SB target buyers listen to local news, talk

shows, and sports. Sponsoring a technology discussion/call-in talk show is a possibility.

Seminars are a good marketing opportunity with SBs. Employees are often happy to

leave their normal routines for a day to learn something new.

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2.4.5 Keys to Success

The main key to success is making the product positioning clear. Many potential buyers

would much prefer our offering to the box only offerings of the chain stores and mail

order sources, if only they knew the tradeoffs.

Word of mouth is critical in this segment. We will have to make sure that once we gain a

customer, we never lose them.

We must always remember to sell the company, not the product. They have to understand

they are taking on a relationship with AMT, not just buying boxes. Boxes they can get

cheaper elsewhere.

3.0 Marketing Plan Strategy

AMT will change its focus to differentiate itself from box pushers and improve the

business by filling the real need of small business and high-end home office for reliable

information technology including hardware, software, and all related services.

3.1 Emphasize Service and Support

We must differentiate ourselves from the box pushers. We need to establish our business

offering as a clear and viable alternative, for our target market, to the price only kind of

buying.

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3.2 Emphasize Relationships

We need to focus our offerings on small business as the key market segment we should

own. This means the 520unit system, tied together in a local area network, in a company

with 550 employees. Our values training, installation, service, support, knowledge are

more cleanly differentiated in this segment.

As a correlary, the high end of the home office market is also appropriate. We do not

want to compete for the buyers who go to the chain stores or mail order, but we definitely

want to be able to sell individual systems to the smart HO buyers who want a reliable full

service vendor.

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4.0 Expense Budget Summary

The following marketing budget comes to a total of less than $450K. This is actually a

decrease over the $485K we spent this year on the marketing budget. We believe we can

get more effective marketing with less money, because we are managing the marketing

better with the Marketing Plus software by Palo Alto Software.

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Type 1997

Ads $285,000

Catalog $25,000

Mailing $113,300

Promo $16,000

Shows $20,200

Literature $7,000

PR $1,000

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Seminar $31,000

 

Training $60,000

Service $10,250

Totals $568,750

4.1 Expense Budget by Manager

Budget by Manager: As the following table and chart show, the largest budget piece is

the $151K (almost entirely advertising budget) managed by Ralph.

Manager 1997

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Ralph $286,000

Casey $65,700

Leslie $75,000

Sonny $111,050

Jan $31,000

Totals $568,750

4.2 Expense Budget by Markets

Most of our budget falls into the general category that applies to both target markets. This

is because much of the spending is impossible to divide into specific market categories.

Of the portion of the budget that is specific, by far the largest share falls into the small

business market, because this tends to lead the market.

94

Markets 1997

GEN $414,200

SB $118,550

HO $36,000

Totals $568,750

4.3 Expense Budget by Type

Budget by type: The largest single expenditure program is advertising, at $150K This is

actually $30K less than we will have spent this year. The second largest is mailing, which

is a priority because of its importance to our database marketing strategy.

95

Type 1997

Ads $285,000

Catalog $25,000

Mailing $113,300

Promo $16,000

Shows $20,200

Literature $7,000

PR $1,000

96

Seminar $31,000

Service $10,250

Training $60,000

Totals $568,750

4.4 Expense Budget by Product

Budget by product: The nonspecific product spendings amount to the largest total, $235K

of the total $423K. The least is the training spending, at only $26K. The nonspecific

spending on product makes sense, because it is related to general training and

development of our business expertise.

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Product 1997

GEN $371,200

Systems $90,000

Service $59,750

Software $22,000

Training $25,800

Totals $568,750

5.0 Sales Forecast

The $6 million sales forecast is shown in detail in the tables and charts to follow. This

represents a 20% increase over the present year. We believe it is a conservative forecast,

and we are sure we can make our numbers this year as a result of more effective

marketing.

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Type 1997

Ads $1,372,500

Shows $82,500

Service $0

Mailing $427,750

Sales $3,693,000

Seminar $272,500

Promo $100,000

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Catalog $10,000

Totals $5,958,250

5.1 Sales Forecast by Manager

Sales by Manager: As might be expected, Leslie has by far the largest sales quota to

manage. This is suited to our strategy of putting Leslie in charge of the sales force, and

tracking sales through the sales force. Details follow.

Manager 1997

Ralph $1,372,500

Leslie $4,100,750

Sonny $110,000

100

Jan $272,500

Casey $102,500

Totals $5,958,250

5.2 Sales Forecast by Markets

Sales by market: Our most important market, by far, is the small business market. The

sales forecast shown in the following table and chart is a superb reminder of why we need

to focus on the specific target markets.

Markets 1997

GEN $2,543,000

101

SB $3,133,750

HO $281,500

Totals $5,958,250

5.3 Sales Forecast by Type

The data shows that we are still unable to attribute our sales in any significant way to our

sales and marketing program. The "Sales" type shown here is the general sales coming in

that is not tied to a specific type of program. This is obviously by far the largest portion

of our projected sales. Advertising comes second. This doesn't indicate a problem with

the plan or our implementation; it is just a fact of life. Much of our marketing activity

generates sales in ways that don't allow us the luxury of tying it back directly to a specific

program.

Type 1997

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Ads $1,372,500

Mailing $427,750

Promo $100,000

Sales $3,693,000

Seminar $272,500

Shows $82,500

Service $0

Catalog $10,000

Totals $5,958,250

5.4 Sales Forecast by Product

Sales by Product: The $6 million sales forecast is shown in the following table and chart.

As always, our largest single sales item is the sales of systems. The next largest item is

the general, non-specific sales, which of course will also be mostly systems. The details

follow.

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Product 1997

GEN $1,372,500

Systems $3,293,500

Service $380,000

Software $799,250

Training $113,000

Totals $5,958,250

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6.0 Measurement and Comparison

Overall, we plan to spend 7.28% of sales on sales and marketing expenses, which seems

about in line for our plan, and for our industry. That breaks down to 3.78% of sales for

home offices, 12.79% for small business, and 10.98% for expenses not tied to either one.

As broken down by products, we spend about 3% of sales on software and systems, and

16% on service and 23% on training. This breakdown makes sense for our marketing,

because of the impact on software and systems of better training and better service.

7.0 Marketing Organization

AMT is still a small company, despite our recent growth.

Ralph, President, is responsible for general management. He specifically manages the

advertising budget, but otherwise is responsible for sales and marketing as the head of the

organization.

Leslie, our sales manager, is responsible for managing the in-house and the outbound

sales forces. We have also put the mailing programs under Leslie, because they must be

carefully coordinated with the follow-up of the sales force.

Casey, our marketing manager, is responsible for marketing programs including sales

literature, trade shows, the catalog, etc.

Jan, who reports to Casey, will take the key role in the seminar marketing programs.

Sonny, who manages service, will also manage the marketing programs related to

service.

8.0 Critical Issues

1. Tracking and follow-up: will we have the discipline, as an organization, to track results

of the marketing plan and make sure that we implement?

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2. Market segment focus: how can we be sure we have the discipline to maintain the

focus?

3. Saying no: can we say no to special deals that take us away from the target focus? Can

we say no to unprofitable deals?

FINDINGS106

Before the launch of the prepaid the market share of Rel iance Infocomm

is 30%.Out of the total respondent 73% have sa id to go for the prepaid

connect ion. This means tha t After the launch of the prepaid the market

share of the Reliance Infocomm has increased to 40% of the total

mobile users .

As expected, other mobi le companies Air tel and TATA Telecom have

launched their services in U.P.East , Rel iance plan to consolidate the

prepaid services with cer tain commitments f rom the customers wil l help

reta in the market share and overcome the competi t ion.

107

Also i t is observed that out of total respondents 54% are unsat isf ied

wi th thei r present service providers and 32% of the total respondents

are interes ted in changing to di fferent service providers.

I t is observed that Hutch has 47% market share and BSNL has 33%

market share while Reliance has 30% market share . As mentioned 32%

customers want to swi tch to other service providers , total ga in would be

to Rel iance in this case.

Out of tota l respondents, 83% are using post paid and out of this 56%,

are interes ted in opt ing for the prepaid connect ions.

I t is observed that total respondents who were shown interes ts in opt ing

for prepaid 73% said to be interested in Rel iance services.

108

Interest ingly 67% respondents found to be aware about the Reliance

prepaid services and most ly seen the TV Advert i sements and SMS

message received from the Reliance.

67% respondents are interested for prepaid only because of i ts easy

avai labi l i ty and 24% said to be interested because of affordabi l i ty whi le

10% preferred because of easy entry.

We can draw that the consumer prefer to buy the Prepaid card from the

nearest buying point as they correct ly feel that they may require to buy

recharge coupons on odd t imes as wel l .Also i t i s diff icul t to buy

Prepaid Card from BSNL as they are not easi ly avai lable .

Also the customers found to be pr ice sensi t ive as they said that the

Reliance Prepaid are more affordable while easy ent ry, that i s , the

ini t ia l investment i s a lso very low in case of Reliance Prepaid card

connect ion.100% respondents said to prefer Rel iance ca l l charges, so

the market is very much price sensi t ive, a l though they value the

Reliance services at the level of sat i sfact ion.

Most of the respondents have sa id tha t they want low tar i f f rates f rom

Reliance and they want to keep the services a t the low costs .The

product i s found to be sat i sfac tor i ly among the respondents while the

pr ices are such to keep the low segment of the society and the f i rs t t ime

users interested to buy i t .Rel iance has used i ts experience and Brand

ident i ty to bui ld wide dis tr ibut ion network through retai lers base.

109

As far as the Brand Promot ion are concerned Reliance has deployed i ts

resources to al l kind of promotion tools to reach the masses.

110

RECOMMANDATION

AND

SUGGESSTION

111

SUGGESTIONS

1- Reliance Infocomm should focus in to opening of more retai l

out le ts in the remote and outskir ts a reas of the c i ty , as f i rst ly consumer

prefer to buy from the neares t out lets , secondly, most of the low

segment markets are also res iding there .

2- Reliance Infocomm should consider in providing bet ter handsets

at the low rates as other GSM handsets are avai lable at much lower

rates, a lso the second hand market for GSM handsets are widely

avai lable at the much lower rates.

3- Reliance Infocomm should t ry to improve the ir Brand Equi ty

among the masses of the c i ty by rendering proper customer services .

4- Market ing communicat ion should aim to supply bel iefs and

evaluat ions that help the consumer feel good about his or her brand

choice.

112

CONCLUSION

113

CONCLUSION

1. Consumer inclination towards BSNL.

2. Call Rate play an important role in choosing tele-

service.

3. Quality of service rendered occupy momentous place in

consumers choice for te le-service.

4. Mostly student (School & College going student) prefer

the prepaid connection & Business group prefer the

postpaid.

5. Most of Mobile users are interested to go for the

services to be rendered by Rim.

6. Majority of the customer is not sat isfied with the

services of rel iance GSM rendered presently.

114

BIBLIOGRAPHY

115

REFERENCE

MARKETING MANAGEMENT : Phil ip Kotler

MARKETING MANAGEMENT : Rajan Saxena

RELIANCE INFOCMM LTD. WBESITE

RELIANCE IFOCOMM LTD. INTERNAL RECORDS

www.reliance.com

www.bseindia .com

www.yahoofinance.com

www.reliancecapital.com

www.reliancelife.com

116

QUESTIONNAIRE

NAME : - - --------------------------------------------------------

AGE : - - --------------------------------------------------------

SEX : - ---------------------------------

OCCUPATION: --------------------------------------------------------------

DESIGNATION: ------------------------------------------------------------

ADDRESS : - -------------------------------------------------------------

TEL. NO.:-----------------------------------------------------------------------

1- ARE YOU A CELL PHONE USER?

YES

117

h NO

2- IF YES, WHO IS THE SERVICE PROVIDER?

RELIANCE

BSNL

HUTCH

OTHERS

118

3-TO WHAT EXTENT YOU ARE SATISFIED WITH THE SERVICE

USING?

EXCELLENT

VERY GOOD

GOOD

SATISFACTORY

UNSATISFACTORY

4- WHICH SCHEEME DO YOU PREFER?

PREPAID

POSTPAID

WHAT TYPE OF SERVICE YOU WANT TO USE?

GSM

CDMA

5- IF PREPAID, THEN WHY?

119

EASY ENTRY COST

FITS TO THE BUDGET

EASY AVAILABILITY

ANY OTHER

6- DO YOU WANT TO CHANGE FROM EXISTING SERVICE

PROVIDER TO RELIANCE PRE/POST PAID SERVICES?

YES

NO

7- IF YES , PLEASE GIVE REASONS:

-----------------------------------------------------------------------------------

----------------

8- WHICH CALL RATE DO YOU PREFER?

120

RELIANCE (Rs 0.50/per min.) RELIANCE (0.1/per sec)

BSNL (Rs.0.49/per min)

HUTCH (Rs0.60/per min)

9- DO YOU AWARE ABOUT THE RELIANCE PEREPAID SERVICES?

YES

NO

10-ARE YOU WILLING TO OPT FOR THE NEW PREPAID SERVICE

FROM RELIANCE?

YES

NO

11-WHAT DO YOU THINK ABOUT THE R-WORLD SERVICES

OFFERED BY RELIANCE?

121

EXCELLENT

VERY GOOD

GOOD

NO USE

12-YOUR EXPECTATION FROM RELIANCE PREPAID SERVICES?

LOWEST TARRIF PLAN

VALUE ROAMING SERVICES

AFFORDABLE INITIAL AMOUNT

ADVANCED HANDSET FEATURES

122

123