Monis 4th Sem Project Final

7/30/2019 Monis 4th Sem Project Final

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IMPACT OF ADVERTISMENT ON POTENTIAL

CUSTOMERS: A STUDY ON RELIANCE

PRODUCTS.

In partial fulfillment of the requirement for Masters Degreein Management Studies (MMS)

Mr. SAYYAD MONISUDDIN

Roll No: B-51

Specialization: Marketing

Academic Year: 2012-2013

Under the guidance of

DR. PREETHI UPAMAKA SRINIVAS

UNIVERSITY OF MUMBAI

Anjuman-I- Islams

Allana Institute of Management Studies (AIAIMS)

Mumbai


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CERTIFICATE

This is to certify that Mr. SAYYAD MONISUDDIN a student of Anjuman-I-

Islams Allana Institute of Management Studies (AIAIMS) pursuing final year in

MMS has completed the dissertation report on IMPACT OF ADVERTISMENT

ON POTENTIAL CUSTOMERS: A STUDY ON RELIANCE PRODUCTS.

in the Academic year 20122013.

This project work is his own work and is of sufficiently high standard to submit to

the University in partial fulfillment of MMS degree.

Project Guide Director

DR. PREETHI UPAMAKA SRINIVAS Dr. LUKMAN PATEL


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DECLARATION

Project Title:IMPACT OF ADVERTISMENT ON POTENTIAL CUSTOMERS:A STUDY ON RELIANCE PRODUCTS.

Submitted on: 31-03-2013

Under the Guidance of: Dr. Preethi Upamaka Srinivas

College: Allana Institute of Management Studies (AIAIMS)

This is to declare that I, Mr. SAYYAD MONISUDDIN student of AllanaInstitute of Management Studies (AIAIMS) Final semester (Marketing) hereby

declare that I have completed the project on IMPACT OF ADVERTISMENT ON

POTENTIAL CUSTOMERS: A STUDY ON RELIANCE PRODUCTS. in the

Academic year 20122013.

The information submitted is true and original to the best of my knowledge.

Date: 31-03-2013

Place: Mumbai

(______________)

Mr. SAYYAD MONISUDDIN

MMS II Year (2012 - 2013)B-51

SpecializationMarketing


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ACKNOWLEDGEMENT

It is a matter of great satisfaction and pleasure to present this report on IMPACT OF

ADVERTISMENT ON POTENTIAL CUSTOMERS: A STUDY ON RELIANCE

PRODUCTS.

I take this opportunity to owe my thanks to all my faculty members for their

encouragement and able guidance at every stage of this report.

I wish to take this opportunity to thank our institutes director Dr. Lukman Patel,

whose guidance and support has been an important factor for my success in my entire

MMS programmed.

I also wish to thank my project guide Dr. Preethi Upamaka Srinivas who gave

guidance wherever required.

I express my gratitude to all those who have directly or indirectly helped me to make

this project.

I wish to thank my parents who have always supported me and appreciated my work

wholeheartedly and been my inspiration.


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INDEX

SR.NO. PARTICULRS PAGE NO.

1 INTRODUCTION 11

2 ABOUT THE TOPIC 27

3 CONSUMER BEHAVIOUR THEORIES 36

4 COMPETITIVE ANALYSIS 42

5 RESEARCH OBJECTIVES AND METHODOLOGIES 49

6 DATA ANALYSIS AND INTERPRETATION 56

7 CONCLUSION 61

8 SUGGESTIONS 63


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LIST OF TABLE

SR.NO. PARTICULRS PAGE NO.

1 AIRTEL DATA CARD TABLE 44

2 TATA USB MODEM TABLE 45

3 VODAFONE DATA CARD TABLE 47

4 AVERAGE ATTITUDE PERCEPTION SCORE 48

5 PRICING TARRIF PLANS OF RELIANCE 54

6 SCALING ABOUT RELIANCE COMMUNICATION

ADVERTISEMENT

60

7 QUESTIONNARIE TABLE 66


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LIST OF GRAPHS & FIGURES

SR. NO GRAPHS & DIAGRAMS PAGE NO

1DATA INTERPRETATION OF CUSTOMER SURVEY

57

2INCOME LEVEL TABULATION

58

3MAIN COMPETITIVE LANDSCAPE

59


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LIST OF ABBREVATIONS

LTVLife Time Validity

CAFCustomer Application form

GSKGet started Kit

FWPFix Wireless Phone

STVSpecial Tariff voucher

OTAFOver the Air Fulfillment

FRCFirst Recharge Coupon

GSMGlobal System of Mobility

CDMACode Dual Module Assessment


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EXECUTIVE SUMMARY

These days organizations are looking forward to obtain competitive edge over their

competitors through highly developed employee skills, distinctive organizational

cultures, management processes and systems which are in contrast to traditional

emphasis on transferable resources such as equipment that can be purchased any time

by the competitors.

In reliance also much work is done to analyze the impact of advertise and to develop

the marketing competencies so as to have better results. In this context a part from the

various departments the marketing sales department has got a crucial role to play.

In my study I have tried to study the consumer behavior towards advertisement and

Strength, Weakness, Opportunity and Threat analysis of reliance communication with

competitor. For this I had to go to different retailers and customers to find out what

actually they think of the services given by the company.

The research conducted with the objective to judge the impact of marketing on sales

for Reliance gave me the opportunity to obtain feedback from the retailers and

customers both permanent and temporary, thereby analyzing it and finally obtaining

the imperative decision.

Similarly as a part of my schedule, I not only analyzed the impact of advertisement

and consumer behavior and also Strength ,Weakness ,Opportunity and Threat was

analysis for reliance but also got a chance to meet different retailers and know what

are the problems they are facing and how we can solve their problems. I also analyzed

the Channel distribution and got to know how communications flow from retailer to

consumer.

Thus the task was not only restricted in the purview of interaction with the retailers

but also providing an insight about understanding the channel distribution.


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Thus the induction programmed followed by the associate manual not only makes the

employees familiar with the company but also make them enthusiastic to face

challenges and motivate to work for the growth of the organization.

The second part consists of data and their analysis, collected through a survey done on

50people. It covers the topic impact of advertisement. The data collected has been

well organized and presented.

Hope the research findings and conclusions will be of use. It has also covered why

people are not happy with the service provided by the salesman. The advisors can take

further steps to approach more and more people and indulge them for taking their

advices. The whole task was manual and interactive, giving me a chance to have a

word with the customers.


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1.1 ADVERTISING

Advertising is a form ofcommunication intended to persuade its viewers, readers or

listeners to take some action. It usually includes the name of a product or service and

how that product or service could benefit the consumer, to persuade potential

customers to purchase or to consume that particular brand. Modern advertising

developed with the rise of mass production in the late 19th and early 20th centuries.

Commercial advertisers often seek to generate increased consumption of their

products or services through branding, which involves the repetition of an image or

product name in an effort to associate related qualities with the brand in the minds of

consumers. Different types of media can be used to deliver these messages, includingtraditional media such as newspapers, magazines, television, radio, outdoor or direct

mail. Advertising may be placed by an advertising agency on behalf of a company or

other organization.

Organizations that spend money on advertising promoting items other than a

consumer product or service include political parties, interest groups, religious

organizations and governmental agencies. Nonprofit organizations may rely on free

modes of persuasion, such as a public service announcement. In 2007, spending on

advertising was estimated at more than $150 billion in the United States and $385

billion worldwide.
http://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Persuadehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Advertising_agencyhttp://en.wikipedia.org/wiki/Public_service_announcementhttp://en.wikipedia.org/wiki/Public_service_announcementhttp://en.wikipedia.org/wiki/Advertising_agencyhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Persuadehttp://en.wikipedia.org/wiki/Communication


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1.2 CONCEPT OF RELIANCE COMMUNICATION

The marketing strategy of Anil Ambani has made millions of Indians happy, they got

the best mobile tariffs in the world-local call costs at 15 paisa/minute, and STD call at

40 paisa/minute. And also awarded the Telecom person of the year 2007.

When the VOICE&DATA jury, comprising eminent professionals from the telecom

field, met in Delhi in June to choose the Telecom Person of the Year 2007, the five-

hour selection process was steamy.

The reason was obvious: The telecom sector is growing faster than any other segment

and naturally their CEOs have a lot to crow about. The jury had to select one from

three CEOs, who had made it to the final list through nominations from the industry

and the initial scrutiny. Among the three, one of the main contenders was a young

CEO. The jury decided that he should come back next year to try and win the coveted

award. The list now had two names-both CEOs of two well-known companies. The

pivotal difference between the two: one is an entrepreneur and the other is not so

popular, as his credit is shared among a number of his big daddies.

Following a five-hour closely held, hotly debated discussion, the name wasannounced: Anil Dhirubhai Ambani, chairman of Reliance Communications. Anil

Ambani joined Reliance Industries (currently promoted by his brother Mukesh

Ambani, following their split) in 1983 as co-chief executive officer. Forbes ranked

him number 104 among the World's Richest People in 2006. The Ambani family

faced criticism when it announced.

Its ambitious plans to build a countrywide telecom network, as its prior expertise lay

in commodities-textiles and petrochemicals-business only. Apart from that telecom

needs a service-oriented mindset, critics felt. What they did not remember was how

the family had served its millions of shareholders.

Policies in India are made in line with Ambani's vision, says an industry expert. His

business acumen and closeness to politicians assisted him in making it to the Rajya

Sabah in June 2004, as an independent member. Ambani chose to resign voluntarily

on March 25, 2006.


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The same association with politicos gave him negative returns too when the

Mayawati Government in Uttar Pradesh put a spanner on his ambitious plans to build

a 1,200-acre SEZ.

Media sees his aggression when he announces financial results for the Reliance ADA

group of companies, and when he attends the annual general meetings and faces

questions from shareholders. When he meets the press, he has answers to all their

questions. He also remembers to call select journalists by name.

To merchant bankers he, who has already contributed immensely to the financial

reforms of the country, is one of the financial wizards of the world. May be because

of his expertise, he gave up in the race to grab Hutchison Essar stake, after indirectlyjacking up the valuation. His negotiations with the Qualcomm chief are also a folk

theory now.

His path-breaking marketing strategy that was put in by the strongest team of telecom

professionals the country has ever seen has made millions of Indians happy as they

got the best mobile tariffs in the world. The aggression resulted to adding to his

already swollen kitty. Every hour India will be adding around 20,000 new mobile

customers and Reliance Communications over 4,000.

When mobile telephony first began in India, a local call cost Rs 16 per minute; an

STD Rs 50; and a call to the US Rs 100 per minute. With Reliance Communications

pioneering price initiative, a local call now costs a mere 15 paisa per minute, STD 40

paisa, and a call to the US costs less than Rs 2 per minute. The presence of Reliance

Communications is making the competition in India panicky. Global telecom forces

will also shortly start feeling the heat. Ambani has also recently announced his Rs1,200 cr. buyout of Yipes Holdings.


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Reliance Communication Achiever's Pride

Anil D Ambani is the CEO of Reliance Communication. He undertook financial

restructuring of Reliance communications to spend Rs 16,000 cr. to expand and

strengthen network coverage.

After expansion of Reliance Communications it will have the single largest

wireless launched the lowest-cost classic brand handset at Rs 777.

Subscriber base grew to over 28 MN during last fiscal, registering 60% growth. Total

Revenue shot up to Rs 14,468 cr. an increase of 34%.The Net Profit rises to Rs 3,163

cr. an increase of over 600%.Revenues of the wireless business increased by 46% to

Rs 10,728 cr.The broadband of reliance communication achieved revenue growth of

123% to Rs 1,144 cr.The market capitalization crossed Rs 100,000 cr.and it will add

near about 23,000 more towers.

Telecom services will be available in over 23,000 towns and 600,000 villages and the

next generation DTH network will be launched before end of the year.

Reliance Communications' wireless subscriber base grew to over 28 million last

fiscal, registering a 60% growth. This makes it one of the top two wireless operators

in India.

"Economic growth in the future will be indexed to connectivity of millions of

enterprise and individual customers. Over the next few years, we will have over 100

million customers, making us one of the top 5 telecom players in the world. In four

years, we put up a total of 14,000 towers across the country. This year alone we will

add 23,000 more towers. Our wireless network is currently available in 10,000 towns.

By the end of this year, it will be available in over 23,000 towns and 600,000

villages," Anil Ambani said at the first annual general meeting of Reliance

Communications since the re-organization of the Reliance Group in June 2005.

"In four years of operations, we invested around Rs 32,000 cr. This year alone we will

invest over Rs 20,000 cr. At the end of this year, we will have covered over 90% of

our population. If Version 1.0 of the Indian telecom story was all about affordability.


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Version 2.0 will be about reach. Our Network expansion will give us the power to

drive the market and stay ahead of the curve," Ambani adds.

According to Ambani, the financial restructuring of Reliance Communications is the

biggest turnaround story in the history of corporate India. The inherited ownership

structure of Reliance Communications was complex. The reorganization has yielded a

simple, fair, and transparent ownership structure, and given Reliance Communications

100% ownership of all operational and associate companies.

Reliance Communications is now among the three most valuable private sector

companies in India, and the five most valuable telecom companies in Asia, in the

current.

Fiscal, Reliance Communications will spend Rs 16,000 cr. to further expand and

strengthen its network coverage across India and the rest of the world.

In addition to organic growth, Reliance Communications will leverage the advantages

derived from this impressive financial platform to explore and pursue any significant

opportunities available in the telecommunications sector. "We are currently evaluating

a number of inorganic opportunities in select international markets to further expand

our footprint," Ambani said.

As per its expansion plan, Reliance Communications will have the single largest

wireless network in the world, covering over 900 million Indians or more than 15% of

the global population.

It will cover 23,000 towns or every single Indian habitation with a population

of over 1,000. Reliance Communications will cover almost 100% of all rail routes,

providing seamless voice, video, radio, and Internet connectivity to 14 mn commuters

every day. It will also cover almost 100% of all national highways, and 84% of all

state highways, giving millions of users the power to talk, text, surf, play, chat or

simply stay in touch across nearly the entire length of India's 2,00,000-km-long road

network.

Having achieved tremendous growth, the main challenge for Reliance

Communications is to improve quality of service and ARPU.


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Its enterprise business is also not in a position to compete with the global majors.

Stock market valuations may boost the fortunes of an entrepreneur, but Ambani needs

to address the issues faced by the growing mobile customer base, especially in India,

where bureaucracy takes pride in checking the businessman.


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1.3AN OVERVIEW OF CURRENT MARKET SCENARIO

Reliance Communications (formerly Reliance Communications Ventures) is one of

India's largest providers of integrated communications services. The company has

more than 20 million customers and serves individual consumers, enterprises, and

carriers, providing wireless, wire line, long distance, voice, data, and internet

communications services through a number of operating subsidiaries. The company

sells communications and digital entertainment products and services through its

chain of Reliance Web World retail outlets. The company's Reliance Infocomm

subsidiary provides wireless communications services throughout India. Reliance

Communications is part of the Reliance - Anil Dhirubhai Ambani Group.

The current network expansion undertaken by Reliance is the largest wireless network

expansion undertaken by any operator across the world.

It was with this belief in mind that Reliance Communications (formerly Reliance

Infocomm) started laying 60,000 route kilometers of a pan-India fiber optic backbone.

This backbone was commissioned on 28 December 2002, the auspicious occasion of

Dhirubhais 70th birthday, though sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and

wire line) and convergent (voice, data and video) digital network. It is capable of

delivering a range of services spanning the entire infocomm (information and

communication) value chain, including infrastructure and services for enterprises

as well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionizing the way India communicates and

networks, truly bringing about a new way of life.

We will leverage our strengths to execute complex global-scale projects to facilitate

leading-edge information and communication services affordable to all individual

consumers and businesses in India.


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We will offer unparalleled value to create customer delight and enhance business

productivity. We will also generate value for our capabilities beyond Indian borders

and enable millions of India's knowledge workers to deliver their services globally.


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1.4 HISTORY OF THE ORGANISATION

In 2009 on12 January reliance communication launches GSM services in Delhi. On

31 January 2009 all new reliance mobile GSM connections come with lifetime

validity at a nominal charge. On 5th of February 2009 reliance GSM service in J&K.

On 12 February 2009,R-Globalcom bags work orders from 3 global retailers.On 13

February 2009 the company launches 50 min STD pack in 35 Rs. On GSM 26

February 2009 reliance communication launches voice-based mobile navigation

service.9 June 2009 reliance communication has entered into joint venture with

Kribhco (Krishna Bharti cooperative ltd.).28 February 2009 reliance communication

adds 3.3.-mn. Wireless customers in Feb 9 march 2009 reliance communicationplaces

300 cr.Modem orders with huawei,ZTE ZTE10 march 2009 reliance communication

adds record 11 m subscribers13 march 2009 reliance communication unveils new

wireless net service. Then on 22 march 2009 reliance communication launches a new

format of reliance mobile store then on 25 march 2009 reliance communication post-

paid services for in U.P & uttarakhand.On 1 June 2009 reliance communication signs

Hrithik Roshan as brand ambassador .On 8 June 2009 reliance communication bagged

a 125 cr.

WAN contract from global consultancy major Mott Macdonald. Then on 11 June

2009 reliance communication to offer BlackBerry services for Rs. 299.On 18 june

2009 reliance mobile in deal with EA mobile.In 2008 January 12 reliance

communications receives Start-up GSM Spectrum. In January 16 Yahoo partners with

reliance communications to provide Yahoo One Search for its CDMA and GSM

customers. January 31 reliance communications Q 3 Net Profit increases by 48.5%

and revenues up by 29.8 %. Remains the most profitable telecom company in India.

February 4 reliance communications offers lifetime validity at Rs 199.Reliance

communications subsidiary infracted files draft red herring prospectus with

SEBI.February 5 reliance mobile strengthens its religious content portfolio on mobile

by tie-up with Sadhana TV. On February 14 reliance communications in partnership

with canvas launches multiplayer mobile games. February 19 HDFC Bank ties up

with reliance communication which turns every Reliance Mobile into a credit card.


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On February 27 reliance communications consolidates global telecom business under

Business Globalcom.Reliance communications forays into international mobile

market with GSM license in Uganda. On March 3 reliance communications drops

prices of internet data cards. On March 10 reliance communications announces

ESOPs for over 20,000 employees. On March20 reliance communications and HTC

forge strategic alliance. On March 27 corporation bank launches banking services on

reliance mobile world. On April 1 reliance communications forays into IT space for

launches of reliance technology Services Company. On April 9 reliance

communications launches educational portal on reliance mobile phones.

On April 25 reliance globalcom unit reliance infocom BV, Netherlands acquires

global WiMAX Operator wave in world. On April 29 reliance communications

announces unlimited free STD calls. On April 30 reliance globalcom launches

passport, global SIM reliance communications net profit up by 70.8% to Rs 5,401

cr.On May 2 reliance communications net profit up by 70.8% to Rs 5,401 cr. (US$

1,350Million), Revenues higher by 31.8% to Rs.19, 068 cr. (US$ 4,765 million) and

EBIDTA increases by 43.3% to Rs.8, 199 cr. (US$ 2049 million).On May12 reliance

communications and alcatel form joint venture to offer managed network services to

Telcos across the globe.

On May 26 reliance globalcom acquires UK based VANCO group limited. On June

24 reliance globalcom, stealth communications forge strategic alliance to extend

VOIP network across 50 countries. On July 12 CA exam results on reliance mobile

came. On July 22 reliance communications mobile subscriber base crosses 50 Million.

On July 29 CA professional exam results on reliance mobile.


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1.5 BRIEF STUDY OF THE ORGANIZATION

CHAIRMANS PROFILE

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil

D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group,

namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance

Natural Resources limited.

He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of

Information and Communication Technology, Gandhi Nagar, Gujarat.

Till recently, he also held the post of Vice Chairman and Managing Director of

Reliance Industries Limited (RIL), Indias largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was

centrally involved in every aspect of the companys management over the next 22

years.

He is credited with having pioneered a number of path-breaking financial innovations

in the Indian capital markets. He spearheaded the countrys first forays into the

overseas capital markets with international public offerings of global depositary

receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries inits efforts to rise over US$ 2 billion. He also steered the 100-year Yankee bond issue

forthecompanyinJanuary1997.

Under his chairmanship, the constituent companies of the Reliance ADA group have

raised nearly US$ 3 billion from global financial markets in a period of less than 15

months. Shri Ambani has been associated with a number of prestigious academic

institutions in India and abroad.
http://www.relianceadagroup.com/


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He is currently a member of:

Wharton Board of Overseers, The Wharton School, USA

Board of Governors, Indian Institute of Management (IIM), Ahmadabad

Board of Governors, Indian Institute of Technology (IIT), Kanpur

Executive Board, Indian School of Business (ISB), Hyderabad

In June 2004, Shri Ambani was elected as an Independent member of the Rajya Sabha

Upper House, Parliament of India, a position he chose to resign voluntarily on

March 25, 2006.

Select Awards and Achievements

Voted the Businessman of the Year in a poll conducted by The Times of India

TNS, December 2006

Voted the Best role model among business leaders in the biannual Mood of the

Nation poll conducted by India Today magazine, August 2006

Conferred the CEO of the Year 2004 in the Plats Global Energy Awards

Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management

Association, October 2002

Awarded the First Wharton Indian Alumni Award by the Wharton India

Economic Forum (WIEF) in recognition of his contribution to the establishment

of Reliance as a global leader in many of its business areas, December

2001Selected by Asia week magazine for its list of 'Leaders of the Millennium in

Business and Finance' and was introduced as the only 'new hero' in Business and

Finance from India, June 1999.


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CHAPTER 2: INTRODUCTION OF THE TOPIC


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INTRODUCTION OF THE TOPIC:

The Reliance Net connect Broadband+ USP

Widest Coverage 35 + towns

Fastest Internet in India with High Data transfer Rates( Reliance Net connect

Broadband+)

Wide range of tariffs catering to all requirements

Affordable Limited Mobility option

Unlimited Night time usage option

Latest technologyOnly operator to provide peak speed of 3.1 Mbps

Fastest Speed-3.1 mbps upload and 1.8 mbps download average 600-1300

kbps DL

(Compared to Tata Indicom Photon+, BSNL EVDO services which offer: 2.4

Mbps DL, 153Kbps UL and Avg. 300-500 kbps DL)

Lower Latencyabout 150 ms on Net connect Broadband+ vs.300 ms on

High Speed 1x


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Backward compatible with High Speed 1x service offering seamless

connectivity across Reliance Network of 20,000 towns and 4.5 lace. villages

Customer Segmentation

User Profiles

Profile / Profession of customer

Corporate Executive

Self-employed professional (Doctor/Lawyer/CAs etc)

Entrepreneur (Stock Broker, Traders etc)

Student

Homemaker & Young at Heart

Usage Profile

Purpose for Internet usage / Applications used

Browsing

Stock trading


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Emailing

IM / Voice Chat

Social Networking

Online Gaming

Video streaming

Downloading (Music/movies)

Video Conferencing/chatting

Usage Pattern

At home/office/on the move

Day time usage/ Night time usage or both

Usage Device

Desktop / Laptop


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Value proposition for each user profile

Increase productivity

Multi-location usage (at home & office etc)

Save time

Have work life balance

More information

Entrepreneur

Multi-location usage (at home & office etc)

Better workforce management

Quick access to information (online stock trading etc)


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Professional

Online research & download of research papers

(2) PROBLEM BEING FACED

Lack of communication between retailers and distributor

Lack of improper distribution channel

Competitors

Not regular visit of DSE and Runner

All retailers are not aware of new scheme of RCOM

Lack of sales promotion and advertisement

Retailer doesnt get claim at proper time

No visit of DL or any other person to the retailers shop

Strength

USE OF POPULARBRAND AMBASSADOR

HIGH MORAL APPEAL

Fast Activation Process

Network

Connectivity

Weakness

NEEDMOREUNDERSTANDING

Distribution problem

MOREHIDDENCONDITIONS

Product display is not proper.


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RELIANCE COMMUNICATION LIMITED

(3) WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE

PROBLEM

Customer Satisfaction

Retailer Satisfaction

Increase in Sale

Sales Promotion

Proper Distribution Channel

STRATEGIC WEAPONS OF RELIANCE

The sharpest weapon that a corporation can develop to survive and thrive, in the

globalized market place is competitiveness. Its cornerstone, as articulated by strategy

Guru Michael Porters is. Its ability to create more value, on a sustainable basis, for the

customer than its rivals can.

Opportunity

New Specialist application

New Market, Vertical,Horizontal

Competitors`Vulnerabilities

Competitor are very few

Threat

Political destabilization.

New Entrants IT Development

Market Demand

Seasonality, Weather Effects


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The competitiveness of a corps flow from a clearly defined strategy, devised after

analysis the different forces in the industry impacting on the company, According to

Porter three generic alternatives:

Cost leadership, differentiation, or strategic focus.

Applying these principles along with the related ones of building entry barriers,

erecting economics of scale, developing marketing competitors Reliance has attained

global levels of competitiveness adopting a single unique route to attain competitive

status (their competitive weapon is the scale of operations).

TECHNOLOGY

Reliance led achievement in manufacturing is, of course, its comment once process

technology since its products do not need cutting edge. Not only has Reliance pushed

its production capacity beyond normal levels, it has develop supervisor processes toincrease the utilization and cost efficiency levels.

Communication is the synergy of information and communication services brought

about by the digitalization and convergence. In the fast moving and competitive

knowledge era, Communication is not only a driver of growth but also

competitiveness. Reliance Communication is revolutionizing telecommunication in

India by provisioning services that would match with the leading operators of the

most developed countries. These services are the outcome of state-of-the-art networktechnologies that have been inducted in the Reliance Communication network.

Our network consists of the latest switching, transmission and access technologies.

The core of the network consists of fiber deployed throughout the country. Deployed

over the fiber media are the DWDM and SDH transmission technologies in ring

topology to provide ultra-high bandwidth capacity and failure proof backbone.


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Besides circuit switched technologies, the backbone also has IP architecture and uses

MPLS technology to carry data on an overlay network. In addition gigabit Ethernet

provide broadband services on wire line access.

The switching technology deployed in our network is based on a combination of wire

line and wireless switches. While state-of-the-art digital feature-rich wire line

switches meet the growing needs of Indian corporate.

The CDMA 1X based wireless switches are advanced enough to provision not only

quality spectrum efficient voice services but also 144 kbps of data rates besides SMS

and MMS services. CDMA 1X provides an in-built connectivity to internet which

gives users the power of accessing internet and data services anytime. These

switching technologies enable us to provide high quality of voice and data services to

give a new experience to users.

The entire network is seamlessly integrated with the deployment of a range of

operations and business support systems (OSS / BSS). These systems help make our

operations more efficient and customer friendly. In addition, the state-of-the-art NOC

helps us monitor our entire network at one place. Call center technologies deployed

would help us give the best customer service.


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CHAPTER 3: CONSUMER BEHAVIOUR

THEORIES


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1.1 Consumer perception and consumer behavior

According to Rice (1993), perception is the initiator of behavior. It can also be

seen as a process of information extraction. Perception is the process by which anindividual selects, organizes, and interprets information inputs to create a

meaningful picture (Kotler,2000).Different people tend to perceive quite differently

even when they are exposed to the same reality.

A set of factors, e.g. individual responses, determine an individuals perception

process and lead to individual differences. The most important is that peoples

perceptions are often more important than the reality in marketing (Kotler, 2000).

The study of customer behavior provides a sound basis for identifying and

understanding the factors that influence consumers purchase on line. Schiff man and

Kanuk (2000) state that the behavior that consumer display in searching, purchasing,

and evaluating products/services is those that they expect to fulfill their needs.

Although perception and behavior are typically treated as two completely

separate phenomena, i.e. the input and output respectively, it has been suggested that

perception and behavior are in fact two sides of the same phenomenon and are

closely related to each other (Rice, 1993).

In order to understand what customer perceive and how they act to affect

their Perceptions, study of perception and behavior should be treated as one integral

part.


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1.2 Consumer decision process

At present, the consumer decision process model has been well accepted. This

model of purchase as decision process is explained in more detail by Thorley et al.(1975). Thorleys decision model illustrates the type and shows there are a series

of semi-discrete steps which take place over time for the buyers and

purchasers.

1.3 Predispositions (Before Purchase)

According to Thorley et al (1975), the prospective buyer possesses a certain stock of

cognitive content, including his own personality or self-concept, attitudes and

opinions both in general and on specific products, and stored information and past

experience. This stock has been formed as a result of his interaction with his

environment over time, and it will help determine the environment in which he

places himself in the future as well as influence his perceptions of that

environment.


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1.4 Product Need

As a result of either cognitive activity or some environmental stimulus, the buyer

recognizes a need which is capable of being satisfied by a product or service. In

other words, the need is often triggered by internal or external stimuli. Some

authors also take this need recognition stage as the entry point. Chas ton (2001)

argues that the potential consumer will not implement any of the other steps in the

buying process until need recognition has happened.

1.5 External Search

Thorley et al (1975) describe that this stage represents all search of the external

environment for alternative solutions as well as for information helpful in

evaluating these alternatives. The search for information occurs on an internal and

external basi s (Gilbert, 1999). The in te rnal search for information from

previous experience might be relevant to the present purchase situation.

The extent and nature of external search for information likely in any given

purchase has been the subject of a great deal of research. When searching for

information in the external environment (e.g., friends and family), consumers focus

on those relevant attributes that are available and are diagnostic (Dick et al., 1990).

1.6 Evaluation of Alternatives

This stage consists of the physical and cognitive activities involved in comparing

alternatives on the basis of information gathered from external search above.

According to Kotler (2000), the consumer arrives at attitudes toward the various

brands through an attribute evaluation procedure and most buyers consider several

attributes in their purchase decision. These attributes used by consumers for

evaluation are also called choice criteria. Jobber (2001) has made a good

summary of these choice criteria. In fact, consumers attempt to optimize the trade-

off between product benefits, product costs, the desired personal utilities and other

variables.


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1.7 Purchase Activity

Purchase activity involves the actual final decision and physical activitiesinvolved in making (or not making) the purchase. This stage includes the actual

transaction. However, as suggested b y Kotler (2000), perce ived ri sks of a

consumer can heavily influence his decision to modify, postpone, or avoid a

purchase decision. Therefore it is necessary for marketers to understand factor that

might provoke perceived risk in consumers and work out solutions to reduce

that.

1.8 Post Purchase Behavior

This step is concerned primarily with the buyers use of the product purchased.

After purchasing the product, the consumer will experience some level of

satisfaction or dissatisfaction which will influence a consumers subsequent

behavior. Dissatisfied consumers may abandon or return the product, they may even

complain to the other group (Kotler, 2000). It is clear that satisfactions and

dissatisfactions created by product performance will be important determinants of

attitudes and information stored as inputs to future purchase decisions.

1.9 Predispositions (After Purchase and Use):

This stage suggests that following the purchase process, the buyer (or non-buyer) is

left with cognitive content which may be quite different from that which was

present at the beginning of the process. Buyers may change their attitudes,

information and experience due to reasons of time and events. All of these may

serve to change substantially the nature of the decision process for future

purchases of same type.


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CUSTOMER BUYING PROCESS


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CHAPTER 4: COMPETITIVE ANALYSIS


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1. Industry Analysis

Indian Telecom industry is one of the fastest growing telecom markets in the

world. In telecom industry, service providers are the main drivers; whereasequipment manufacturers are witnessing growth and decline in successive

quarters as sales is dependent on order undertaken by the companies. Airtel,

Reliance, Tata and Vodafone are some of the companies that are expected to spur the

growth in AMJ08, as compared to AMJ07.

According to Cygnus estimates, telecom industry is expected to grow by 25% in

AMJ08 as compared to AMJ07, in terms of sales. EBDITA and PAT are

expected to grow by 32% and 34% respectively in AMJ08 as cost expenses are

being control by major companies like Airtel and Reliance. The major booster is the

wireless mobile subscriber base; crossing over 261m in March 2008. Other services

like Internet subscriber base has also provided significant impetus with its subscriber

base reaching over 11m in March 2008.


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Bharti Airtel

Bharti Airtel is Indias leading provider of telecommunication service. Airtel Data

Card is the superior PC Data Card solution which delivers wireless internet

capabilities to laptops and notebooks, by providing EDGE and GPRS technologies

in a single PC Card package. On an EDGE network, Airtel Data Card enables

connection to the Internet using EGPRS.

In areas where EDGE services are not available, the Airtel Data Card still

enables reliable and secure data connections over GPRS. The tariff charges of

Airtels data card are shown below.

Airtel Data CardName of Bill

Plan Datacard49 Datacard350Data card

599 NewData card

999 New

Monthly Fixed ChargesMonthly

Charges 49 350 599 999

Data Charges (Rs/Pulse) (All India)Rate Per Pulse 0.1 5 3 0Pulse 10 KB 1MB 1MB 1MBData Usage

Discount Nil 500 Mb 1 GBUnlimited

Free

Default Voice Charge

Local Outgoing (Rs/Min) (Kolkata, West Bengal, Sikkim and A &M

Airtel to All 1.99 1.99 1.99 1.99

STD Outgoing (Rs/Min)

Airtel to All 2.99 2.99 2.99 2.99ISD Outgoing

# Slab 1 6.4 6.4 6.4 6.4# # Row 1 9.2 9.2 9.2 9.2# # # Row 2 40 40 40 40

SMS (Rs/SMS)Local 1 1 1 1National 2 2 2 2International 5 5 5 5

Free

SMS/Month Nil Nil

100

Local

SMS100 Local

SMS


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Tata- Indicom

Tata-Indico currently at leading position in wireless data card market in India. Tata

Teleservices Tata-Indicom data card sales have exceeded the 100,000subscribers milestone. Using CDMA 1x technology, Tata-Indicom data cards

offer wireless internet access. The recently launched Plug 2 Surf Whiz fits into a

standard USB port available in most desktops and laptops. TTML's Plug 2 Surf

Whiz offer is being promoted with outdoor campaigns across Mumbai and

Maharashtra. The tariff charges of Tata-Indicoms data card are shown below:

TATA USB Modem

Plan Name Highlight Fixed Charge Free Usage Additional UsageTime Based

Budget 150 Lowest rental Rs.150/month 300min 50p/min

Value 325 Free 1hr/day Rs 325/month1800 Min

(30 Hrs)

8AM -

12AM:50p/min

12AM -8AM

:25p/min

Data BasedME

UnlimitedUnlimited

usage Rs.1099/month Unlimited N/AME

Economy Always On Rs. 500/month 512MB Rs. 2/MBME Jumbo For Heavy Rs. 650/month 1GB Rs. 2/MBME Max Users Rs. 900/month 2GB Rs. 2/MB

ME 6 AdvancedRs.

3600/6month 1GB Rs. 2/MB

ME 12 RentalRs.

6700/annum 1GB Rs. 2/MB

Voice Tariff

Rs. /min To TATA To OtherLocal 50 Paisa Rs. 1STD Rs. 1.69 Rs. 2.65


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Bharat Sanchar Nigam Limited (BSNL)

Bharat Sanchar Nigam Ltd (BSNL) is a public sector undertaking, wholly owned by

the Government of India. BSNL has decided to launch its Data Services on CDMA2000 IX by using BSNL Internet Connect Card (ICC) based on broadband

connection for laptop users in India. The CDMA IX ICC will provide Internet

Service @144kbps to computer users on their laptops as well as on desktops.

This service will be available in all those locations wherever CDMA IX MSC

based coverage is there. However, during roaming the said Internet connectivity will

not work at present. The following two types of data Cards will be available forBSNL customers:

(A)Network Interface Card (NIC): For internet speed up to 144 Kbps.

(B)EVDO Card: Internet speed up to 2.4 Mbps. The Tariff of this service is

around 550Rs/month for speeds up to 2.4Mbps in most cities in India.

Though there are reports that the pricing differs based on cities and starts at

400Rs/month to 550Rs/month.

City Wire tariff plans charges data card are shown below: Pricing in UP

Plan 1 - 1650 Down Payment + 400Rs/monthly Rent Plan 2 - 3600 Down Payment +

250Rs/monthly Rent Pricing in Jamshedpur (Jharkhand)

Plan 1 - 2460 Down Payment + 750Rs/monthly Rent

Plan 2 - 3600 Down Payment + 250Rs/monthly Rent

Pricing in Chennai Plan 1 - 3500 Down Payment + 250Rs/monthly Rent
mailto:@144kbpsmailto:@144kbps


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Vodafone -Essar (Erstwhile Hutchison Group)

The Hutchison Group provided GSM mobile services in 13 circles across the country.

Its main equity partner is the Essar Group. Vodafone recently launched its wireless

internet device like

Vodafone Mobile Connect Globe Trotter EDGE data card

Vodafone Mobile Connect USB Modem

Vodafone Mobile Connect USB Stick

The tariff charges of Vodafones data card are shown below:

Monthly rental (Rs) 499 99

Free data 500MB GB

Usage charges 5P/10KB P/10KB


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Average attitude perception score of each brand

Initial Eigen values Extraction Sums Loadings

Total % of

Variance

Cumulative% Total % of

Variance

Cumulative%

1

2

3

4

5

6

7

2.705

1.881

1.431

1.124

.827

.435

.768

24.201

14.443

13.563

9.688

8.032

6.437

6.407

24.401

31..768

52.338

64.075

70.221

78.334

82.451

2.805

1.798

1.502

1.543

24.542

16.547

13.516

10.872

23.294

41.643

54.543

63.098


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(1) RESEARCH PROBLEM

Collection of Data of other companiesTata, Airtel, Idea & BSNL

Retailers some time gives wrong data

Limitation of time and money

(2) RESEARCH OBJECTIVE

To know the demand of Reliance Net connect in the market.

To help in development and introduction of new product and plans.

To identify the company position among competitors

To determine those factors which persuade retailers for sale of RCOM

Sims/product

To find out which type of schemes retailers prefer and why?

To study the effect of irregular supply on the sale of the product


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(3) SUBJECT OBJECTIVE

To compare the Tata, Idea, and Vodafones HSD for analyzing the status

of RCOM Bundle Offers.

To identify the Market share of RCOM

To find out the basic problems of retailers

To find out the performance of Distributor

To find out the basic problems of Channel of Distributor

To find out the Claims pending of Retailers.

(4) HYPOTHESIS

It has been partially assume that, advertising does have the impact on

potential customers.

The brand name and advertise partially affect the consumer buying

behavior.


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(5) INFORMATION REQUIREMENT

Complete Price structure of reliance communication, TATA, IDEA and

VODAFONES offerwhich includes:-

Activation Charges

Discount Offered

Schemes offered

(6) SOURCES OF INFORMATION

Data collected of the Company

Secondary Data

Internet

Retailers

Distributor

Sales Executives

Other Trainees (Runner)


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(7) SCHEMES, PRODUCTS

RELIANCE PRODUCT

Reliance Base Phone

Reliance Mobile

Reliance Data Card

Reliance Voucher, E-Recharge

Reliance PCO

Reliance Broad Band


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PRICING TARRIF PLANS

Plan

Name

Monthly

Rental

Bundled

Usage

Usage

Chargesbeyond

Free

Usage

Roaming

Pay Asyou Go

Rs. 299/- Nil Rs. 2/- perMB

Nationwide

Broadband+ 1 GBPlan

Rs. 650/- 1 GB Rs. 2/- perMB

Nationwide

Broadband+ 2.5 GBPlan

Rs. 850/- 2.5 GB Rs. 2/- perMB

Nationwide

Broadband+ 5 GBPlan

Rs. 1099/- 5 GB Rs. 2/- perMB

Nationwide

Broadband +CitywideUnlimited

Plan

Rs. 1099/- UnlimitedCitywide

Broadband +UnlimitedPlan

Rs. 1750/- Unlimited Nationwide

Unlimited@Night

Rs. 499/- UnlimitedNight

50 paisaper minuteduring day(between 6AM10PM)

Nationwide


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RESEARCH METHODOLOGY

Research methodology is a way to systematically do the job. It may be understood as

a science of studying how research is done scientifically. The most desirable approach

with regards to the selection of the research methodology depends on the nature of

particular work, time and resources available along with the desire level of accuracy.

Research Type - Descriptive Research

Data Source - Primary Data

Research Instrument - Questionnaires

Type of Questionnaire - Structured

Sampling Unit - Retailer and consumer

Sampling Method - Judgmental

Contact Method - Personal Interview


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CHAPTER 6: DATA ANALYSIS AND DATA

INTERPRETATION


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(1)DATA INTERPRETATION OF CUSTOMERS SURVEY

Age groupTabulating in percentage the age group of customers

Above figure shows that researcher having surveyed 18 respondents, 25% belong to

age group 18-28%, 47% belong to age group 28-35%, belong to age group 36-45 and

6% above age of 45.

Age Group Percentage (%)

18-25 25

28-35 47

36-45 22

Above 45 6


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Income Level Tabulation

The above analysis shows that 42% of the respondents belonged to the Rs.8000/- and

below income category, 34% belonged to Rs.8000 to Rs.12000 and 18% belonged to

Rs.12000-Rs.20000 and 6% above income of Rs. 20000.

Income Group Percentage (%)

8000 42

8000-12000 34

12000-20000 18

> 20000 6


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The main competitive landscape can be summarized below:

Room wire line- ------------------ white color

BSNL wire line- ------------------ yellow

Tata wireless------------------- sky blue

Airtel wire line------------------- red

RCOM wireless- ---------------- dark blue

BSNL wireless------------------ brown


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SCALING ABOUT RELIANCE COMMUNICATION

ADVERTISEMENT

Scale Percentage

Very good 20

Good 25

Satisfactory 40

Poor 10

Cant say 5

The survey revealed that 40% of the respondents Reliance advertise as satisfactory.

This is a telling comment. However the survey also found out that 20% and 25% of

the respondents Reliance advertise as very good and good respectively. There were

5% of the respondents who had nothing to say about the RIM.


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CHAPTER 7: CONCLUSION


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CONCLUSION

Reliance Communication of Anil D.Ambani Group is very fast catching up with the

market by providing economic internet rates. The market strategies adopted by its

executives are bearing fruits and the company although being the Second one to enter

the market. Nagpur has found a suitable niche and recognition in the consumer. But

this is not a thing for self contentment as the survey reveals that in network, service

and distributor, so to withstand the competition resources mobilization and

technological innovation on the part of cos.

To upgrade its quality of network and services is urgently called for market access

and growth is alright but the improvement of quality on the above counts is necessity

of the time.

Most of the customers that are around 74% of respondents are satisfied with reliance

communications brand, 10% of them push reliance communication brand to the

average service and rest 16% customers are not satisfied with reliance communication

brand due to claim pending.

It is concluded that the advertisement and promotional activities made by the reliance

communication are able to change the buying behavior of customers.


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SUGGESTIONS

REGARDING ADVERTISING

(1) Advertising Advertising should have a clear objective and message, which

has not been found in recent ads. Reliance is a faster growing provider service in each

state .Every offers and schemes they should show with proper message for benefit to

the customer. In busy life customer do not remembered any offers and which service

we can provided for the customer therefore they should by force showing

advertisement in growing market and among customer .customers wants continuously

exposure in Cable and Local newspapers.

(2) Persuasive Advertising :-

Now there is a need of persuasive advertising for Reliance service which can be

moved into the category of comparative advertising. It will help the company to

establish the superiority of its brand service through specific comparison of one or more

attributes and features.

(3)Technical Expertise:-

The advertisement should show the company's expertise, experience and pride in

market the product service sale.

Media A combination of print ads and TV commercial do a better job. Local ads and

publicity should be giving more stress. Hoardings, banners, wall painting should be

promoted, as some expenses are also beard by dealers. Ads on Cable network result

greater audience attention. Schemes, gift offers etc. must be highlighted through Radio and

Local newspapers.


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REGARDING SALES

1. IMPROVEMENT IN AFTERSALES SERVICE:-

There is a need of onsite service professional for dealing with customer

problems. Which will result in satisfied customer which in turns lead to chain reaction

of purchase.

2. Expansion in network coverage:-

Outer areas of Mumbai are yet to be covered; expansion will result in more market

potential.

3. PROMOTIONAL ACTIVITIES

The company expands the budget allocation for promotional campaign in center

Mumbai. It has affected the sale service brand image of Reliance especially in

Mumbai. Low supports in promotion have lead to fluctuation in sale.

4. SALES PROMOTION

Cash discount

Premiums

Appointment of sale promoter

Financial schemes


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ANNEXURE 1

SAMPLE QUESTIONNAIRE

1) How many times did you see this advertisement?A)1 B)2 C)MORE THAN 2 D)NONE

2) Did you ever mention this advertisement to anyone?

Yes

No

3) Did anyone ever mention this advertisement to you?

Yes

No

4) How well did this advertisement catch your attention?

Very Well

Somewhat Well

UndecidedNot Very Well

Not at all Well

5) How believable were the claims made in this advertisement?

Very Believable

Somewhat Believable

Undecided

Not Very BelievableNot at all Believable

6) How well do you feel this ad informed you about the product?

Very Well

Somewhat Well

Undecided

Not Very Well

Not at all Well


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7) How appealing did you find this advertisement?

Very Appealing

Somewhat Appealing

Undecided

Not Very Appealing

Not at all Appealing

8) How convincing did you find this advertisement?

Very Convincing

Somewhat Convincing

Undecided

Not Very Convincing

Not at all Convincing

9) How memorable did you find this advertisement?

Very Memorable

Somewhat Memorable

Undecided

Not Very Memorable

Not at all Memorable

10) How creative did you find this advertisement?

Very Creative

Somewhat Creative

Undecided

Not Very Creative

Not at all Creative

11) In general, how would you rate the quality of this advertisement compared to

other ads of a similar nature?

Excellent

Good

Fair

Poor

Undecided


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12) Do you currently use this product?

Yes

No

13) Based on this advertisement, how likely would you be to purchase this

product in the future?

Very Likely

Somewhat Likely

Undecided

Not Very Likely

Not at all Likely

14) If deciding between this product and a competing product, how much would

this ad influence you to buy this product?

Very Much

Somewhat

Undecided

Very Little

Not at All

15) What, if anything, did you find appealing about this advertisement?

16) What, if anything, did you dislike about this advertisement?

17) Which of the following would you use to describe this advertisement? Please

check all that apply.

Appealing

Honest

Distasteful

Credible

Convincing


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Creative

Distasteful

Attractive

Believable

Memorable

Not Credible

Touching

Professional

Silly

Please tell us a little about yourself.

18) Are you male or female?

Male

Female

19) What is your age?

20) What is your marital status?

A) MARRIED

B) UNMARRIED


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BIBLIOGRAPHY

BOOKS

Marketing Management - Phillip Kotler

Marketing Research - Toll & Hawkins

MAGAZINE

Business Today

Advertising & Management

NEWSPAPERS

Economic Times

Hindustan Times

Financial express

WEBSITE

www.google.comwww.rcom.co.in

Documents

Monis 4th Sem Project Final