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Project On
Market Research on comparative analysis of BSNL with its competitors
(A Govt of India Undertaking)
Master of business administration (Marketing)
Submitted by
Sumit Singh
PRN-07208014831
Of
(Institute of Business Studies & Research)
Navi Mumbai
With immense pleasure, I would like to present the project report for BSNL. It has been an enriching
experience for me to undergo my summer training at BSNL which would not have possible without the
goodwill and support of the people around. As a student of INSTITUTE OF BUSNINESS STUDIES
& RESEARCH, NAVI MUMBAI, I would like to express my sincere thanks to all those who helped
me during my practical training programme.
Words are insufficient to express my gratitude towards Mr. R. P. Tiwari, Document Section and BSNL. I
am very thankful to Mr. B. B. Singh, Principle of RTTC Lucknow, who helped me at every step
whenever needed.
At last but not the least my grateful thanks is also extended to Prof- Dev Burman (faculty MBA-
Marketing, IBSAR Navi Mumbai) and my thanks to all my faculty members and director for the proper
guidance and assistance extended by them. I am also grateful to my parents and friends to encourage &
giving me moral support.
However, I accept the sole responsibility for any possible error of omission and would be extremely
grateful to the readers of this project report if they bring such mistakes to my notices.
Bibliography 63
BSNL has engaged the services of The Boston Consulting Group (BCG) to help develop an overall
strategy and transformation plan for the organization. BCG is a leading global consulting firm and has
extensive experience working with working with major telecom incumbents globally and in India on
issues of strategy, sales & marketing strategy and large scale transformations. BCG has significant
experience of working with large Public Sector undertakings to help them define and implement their
change agenda.
This transformation exercise, called Project SHIKHAR, will cover development of an overall strategic
agenda across BSNL’s key businesses including customer segmentation, sales channel management as
well as product management. It will also look at appropriate strategic initiatives in operations as well as
in Human Resource Management in order to implement the new strategy effectively. All this is aimed at
making BSNL more capable to thrive in a very competitive market place.
• To understand the current market position and to evaluate the improvements required for BSNL
• To understand the product changes needed to give it a competitive edge in the market.
Secondary objective-
So far as I believe that this research is going to be a huge success, because the kind of objective it has is
mind-blowing. This project will surely help BSNL to get its position back. This project has a vast scope
in U.P.(east) because it has been planned in this manner.
It’s very obvious that people have their trust on BSNL and has a big number of subscribers. BSNL is not
only into mobile services but also it is INDIA’s biggest landline service provider. BSNL has recently
launched 3G mobile service which is a revolution in telecom sector. BSNL’s broadband internet service
is a mile stone. Services of BSNL are all perfect but right approach and strategy will make it easier for
the customers to be familiar with it.
I believe that the research programme will surely help BSNL to get a strong grip into the market. This
kind of research programme should be conducted time to time to find what’s going on it the market and
what is to be done to handle the scenario.
From my study’s point of view it was a great experience. I interacted with the people and tried my level
best to find out problems and best solutions of those problems. I used all my skills and knowledge in that
research. I learned a lot from this research and it helped me to remove the hesitations that I had earlier in
interacting with the people. I came to know how the system works in corporate world.
COMPANY PROFILE
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications
Company providing comprehensive range of telecom services in India: Wire line, CDMA mobile, GSM
Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc.
Presently it is one of the largest & leading public sector units in India.
BSNL has installed Quality Telecom Network in the country and now focusing on improving it,
expanding the network, introducing new telecom services with ICT applications in villages and wining
customer's confidence. Today, it has about 47.3 million line basic telephone capacity, 4 million WLL
capacity, 48.11 Million GSM Capacity, more than 37382 fixed exchanges, 44966 BTS, 3140 Node B
( 3G BTS), 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network
connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages.
BSNL is the only service provider, making focused efforts and planned initiatives to bridge the Rural-
Urban Digital Divide ICT sector. In fact there is no telecom operator in the country to beat its reach with
its wide network giving services in every nook & corner of country and operates across India except
Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the
country. BSNL serves its customers with its wide bouquet of telecom services.
OBLIGATIONS
1. Towards customers and dealers
To provide prompt, courteous and efficient service and quality of products/services at fair and reasonable
services.
2. Towards employees
Develop their capability and advancement through appropriate training and career planning
Expeditious redressed of grievances
BSNL’S ASPIRATION
BSNL has created an aspiration to guide its transformation process. This aspiration was developed in a
very systematic manner and involved interactions and deliberations among employees from various
cadres, designations and geographies.
BSNL’S ASPIRATION IS TO –
• Be the leading telecom service provider in India with global presence
• Create a customer focused organization with excellence in sales, marketing and customer care.
• Leverage technology to provide affordable and innovative products services across customer
segments.
• Provide a conducive work environment with strong focus on performance.
• Establish efficient business processes enabled by IT.
PROPOSED STRATEGY TO ACHIEVE ASPIRATION
Having defined this aspiration, we are working on the following key pillars of transformation
• Revitalise the business via –
o Focusing on aggressive growth in Mobility (2G/3G), Broadband and Enterprise
segment(i.e., corporate customers)
o Reducing churn in the landline (including PCO) business and consolidating our position
in the wholesale business (i.e., NLD)
o Venturing into new areas to further drive growth such as infrastructure sharing, DTH,
international expansion among others
• Build operations excellence in the following critical areas –
o Marketing, sales and distribution
o Product innovation and pricing
o Customer service
PARTICULARS OF ORGANISATION
Incorporated on 15.9.2000, vide Registration No. 55-107739,
dated the 15th September, 2000 and became entitled to commence
business with effect from 19th September, 2000.
SHAREHOLDING
Government of India is holding 100% of the share capital of the
PATTERN
Company.
LISTING WITH
Not applicable, as the BSNL is an unlisted company.
STOCK EXCHANGES
Authorised Capital – Rs.17, 500 crores, divided into 1, 000, 00,
00,000[One Thousand Crores] Equity Shares of Rs.10/- each; and
750, 00, 00,000 [Seven Hundred and Fifty Crores] Preference
SHARE CAPITAL
Shares of Rs.10/- each.
Paid Up Share Capital - Rs.5,000/- crores of Equity Shares and
Rs.7,500/- crores of Preference Share Capital
OBJECTIVES OF As set out in the objects clause of the Company’s Memorandum of
THE COMPANY Association.
India's fastest growing cellular service , along with postpaid and prepaid services brings cellular
telephony to the masses, through innovative technology and strategic pricing.
This ambitious service uses state-of-the-art GSM technology to attain global excellence and leadership in
business. Our entry into this sector has brought GSM cellular service at an affordable cost to the
common man. All serving a single objective, to provide better communication to millions across India.
Customers have reposed tremendous faith in BSNL and it has enrolled over 30 Lakh Cellular customers
within ten months of launch of Cellular service, an unprecedented mark in Indian Cellular Market.
3. INTERNET SERVICES
BSNL offers Dialup Internet services to the customers by Post-paid service with the brand name
‘Netone’, and pre-paid service with the brand name ‘Sancharnet’. The post-paid service is a CLI based
access service, currently operational in 100 cities. Sancharnet is available on local call basis throughout
India to ISDN and PSTN subscribers. The Internet Dhaba scheme of the Company aims to further
promote Internet usage in rural and semi urban areas.
BSNL has launched its broadband services under brand name “BSNL BROADBAND”on 14-01-05.
This offers High Speed Internet Access with speed ranging from 256 Kbps to 8 Mbps. Ever since its
inception BSNL is continuously expanding its broadband network in response to ever growing demand
of broadband service throughout India
Present customer base is 3.56 million, with equipped capacity of 6.1 million. BSNL Broadband service is
available in more than 3800 cities & 83000 villages.
The services provided are
• High Speed Internet Connectivity(up to 8 Mbps)
• Band width on Demand(planned)
• Virtual Private Network(VPN) service over broadband
• Dial VPN services to MPLS VPN customers
• IPTV services(at present available in 66 cities)
• Games on Demand Service
• Video tutoring service
• VOIP
• Video Surveillance service
• Entertainment portal.
BUSINESS DEVELOPMENT
Business Development Cell is responsible for developing new business revenue streams, new product,
tying up with other vendors for providing joint offering, etc. BD cell has tied up with vendors/other
organizations for Bundling of products with BSNL service like Handset Bundling (2 G & 3 G), PC
6. Brand Equity.
We may think what is Brand equity? In simple words it is how far people are willing to pay if we
increase our prices i.e. premium for our services. We may feel happy to say there is lot of black
marketing of our SIM cards. Is it a healthy sign? We reduce prices when competitors launch new
schemes. Does it imply poor brand equity? Brand Equity can be built with good equity of quality of
services at the affordable price. Continuous innovation in product and delivery of services with the
appropriate pricing is the key strategy for developing the trust in customer so that he keeps his loyalty
with BSNL. We have to be first mover in our efforts for product and price differentiation. Presently the
market is in growth phase and price could be a differentiating factor, but how long? Is any scope left for
So where should our marketing & sales effort be more? Wholesale, retail or corporate! What means do
we need to use to promote our products and in what proportion? Advertising, PR, Franchisees, 24x7
customer care, business development etc. What activities should be taken up by Corporate Office,
Circles and SSAs? In advertising there is need to synergize our activities at Corporate, Circle and SSA
level. In this regard Corporate office has issued division of work guidelines. There is also a need to have
good relation with our advertising agencies and simultaneously their performance need to be monitored
for taking quality output from them.
What is USP (Unique Selling Proposition) for BSNL? A Government company which delivers. A
government company which gives service better than private could be a deadly combination, which no
competitor can copy.
Strength :-
• It has a competitive pricing policy.
• BSNL provides continuous training, career advancement opportunities and a self motivated work
environment to its employees.
• BSNL has a corporate culture of mutual respect and is an excellent service provider.
Weaknesses :-
• Although it is investing too much in R&D but its marketing skills are below average.
• Although it is growing very fast but at the same time it is losing its customers as well because the
competitors are chasing close behind.
Opportunities :-
• BSNL can retain its customers by improving its marketing skills.
• The group can strengthen and expedite research & development in order to deliver products of
top international standards.
Threats :-
• External factors like political instability and economic instability which are affecting the business
environment.
Chapter-4
1-syndicated-services research firms- these firms gather consumer and information which they sell for
a free. For example- the Nation Council for Applied Economic Research (NCAER), ACNielsen-ORG-
MARG, and IMR International.
2-Custom marketing research firms- They design an carry out research studies for various clients
based on specific briefs.
3-Speciality-line marketing research firms- these firms provide specialized research services such as
developing a research brief collecting field, and preparing data analysis and reports for other firms.
A company can hire the services of a marketing research firm or conduct research in creative and
affordable ways such as:
1- Engaging professors or students to design and conduct studies. Many large companies
hire summer trainers from management institutes for cost-effective market research year
after year. Awarding live projects to MBA students as part of their coursework is also a
common practice.
2- Monitoring published information and actions systematically. This may be done by
examining newspapers, web sites, industry reports, and by visiting competitive outlets.
Most companies such as Fuji photo film, use a combination of marketing research resources to study
their industries, competitors, audiences, and channel strategies.
survey. Usually a questionnaire which the respondent are asked to fill up.
It is true for individuals as well as organizations. The strongest form of vision / motivation is to base
vision on “What Legacy we want to leave.” And to achieve it we must take a principled cantered path.
History is full of examples that many organizations have vanished grown and vanished overnight as their
path to achieve vision was not based on principled way.
Vision of the organization can only be translated into reality, if it is shared by one and all. The best way
to implement is to involve them in formulation. But even if it is conceived by higher management then it
has to be explained to each and every individual of the organization, otherwise it may remain as a
showpiece.
Marketing vision of the BSNL has to be based on overall mission and vision of the organization.
Marketing Objective.
The ultimate objective of any marketing activity is to satisfy the customers and today even a step ahead
i.e. ‘delighting’ the customers, for which customers are offered something beyond their expectations
from the service or the product. The objective being to acquire and retain the customers, who should
continually feel that they are getting more value of the money, they are departing with.
Selling is one activity of the entire marketing process. Selling is the act of persuading or influencing a
customer to buy (actually exchange something of value for) a product or service.
Marketing activities support sales efforts.
Here is a test to find whether your mission on earth is finished, If you are alive, it isn’t.
Richard Bach.
Most of the big companies have a Vision & Mission statement so as to guide their all energy, efforts to
realize it. BSNL also has a vision ‘To become the largest Telecom Service provider in South East Asia’.
Firstly we need to understand the parameter for being the largest. Is it revenue, ARPU, profit,
subscribers, Network (no of exchanges, BTS etc)? From monopoly to multi operator scenario, BSNL’s
market share is bound to reduce. But how much down we will let it? There are lot of similarities between
British Telecom & us. One must keep watch on market share in monthly growth and take timely action.
To improve our share, we need to acquire more than 50% of new acquisitions while maintaining earlier.
This is quite challenging in this dynamic environment. Today landline base is reducing across globe, but
why? Europe defines an operator with 25% or more market share as Significant market Power (SMP),
while they intend to increase it to 40%. BSNL has been the largest operator and we must strive not only
to maintain but enhance it. We need to act fast. Timely action is an essence.
What should be our marketing Vision, will it help us in inspiring to achieve higher. Can it be something
such as “To retain the highest market share, build highest brand equity and maximizing the profits?”
10. Summary
Vision is set in the Boardroom but realized in the battlefield. Each and every employee has to
continuously lead this battle to be victorious. The corporate office is always willing to provide all
resources. Together we can realize our vision.
My philosophy is that not only are you responsible for your life, but doing the best at this moment puts
you in the best place for next moment.
Oprah Winfrey.
Extension Of Marketing Strategy-Step Into Retailing
Project Vijay - Mobility sales and distribution project (retailer’s survey) – is being piloted in UP (East)
Telecom circle. The key objectives of the pilot are to -
A. Design channel structure
B. Create channel management team
C. Develop improved channel norms to improve retailer reach, create appropriate incentives and
improve performance monitoring of channel
D. Implement proposed channel structure for franchisee network
E. Test other recommendations on tariff and handset bundling, if appropriate
RESEARCH METHODOLOGY
Research Methodology:-
1 – Research Problem
• To find the performing of BSNL vis-à-vis other companies like Reliance, Idea, Airtel, Vodafone
In and TATA Indicom.
• To know the consumer perception and their behaviour towards BSNL services.
• To find out if the retailers are not satisfied with the commission provided by BSNL.
• To find whether the distributers visit the market and supply the products to the retailers
• To find out how much commission the other companies provide to the retailers?
2 – Research Objectives
• To know the preference of BSNL services with other competitive companies.
• To find out what should be done to create the awareness about the products
3 – Information Requirement
First I had to know about the entire competitor present in telecom services segment (reputed and well
established companies).
Before going for the survey I had to know the comparative services and rates of all the competitors
existing in the market. Because at the time of retailer’s interview they used to ask several questions
regarding BSNL services and schemes. I had to know about the distributers and the respected areas they
were dealing in. these were some of the information’s that I must know to make the interview interactive
and interesting.
Sampling –
products
Questionnaire
• Questions were asked to the respondents as regards to their willingness to use BSNL services.
• The help of questionnaires conducted direct interviews, in order to get accurate information.
• In order to get correct information I had to approach consumers ranging from 18 years to 65
years’
Interpretation- The second question was about recharge coupons, whether the retailers sell ot or not or
they only deal with SIM cards and E-TOP up. It was found that 90% of the retailer sell paper recharge
and 80% of them were dealing with electronic recharge and 10% of them did not sell any kind of
recharge. It was a general question for all the telecom brands. This was not a specific question about
BSNL it was to get a brief idea about the shop dealing.
Interpretation- this question was to know whether they deal with BSNL mobile connections or not. I
found that 60% of the retailers deal with BSNL connections whereas 40% of the retailers do not entertain
in BSNL connections. All the retailers had their own reasons not to deal with BSNL SIM cards. But it
was very much because of BSNL’s week marketing strategy and unavailability of the required products.
Again there are a lot of problems with the BSNL network, therefore customer do not show there interest
towards BSNL and switching to other companies.
Interpretation- the question was to found that who the distributer of that area. Whether they are being
able to fulfil the market demand or not and what kind of behaviour they have towards retailers. I found
that none of the BSNL distributer deal properly. Retailers themselves have to go there and get the things
they need. Demand of BSNL in the market is very high but because of unavailability of the products
customers switch to other service provider. This is again not a good sign of good marketing. These are
some of the reasons why people are losing their trust from BSNL and switching over other service
provider.
Interpretation- because telecom industry is a booming industry therefore each and every business person
are dealing with this why not they have any running business. Therefore people are not only running the
separate telecom business but also doing this business in their running business shop or store. Today you
can find telecom products in medical store also and not only in medical store but also in stationary store,
agriculture store, general store and electronic stores also. There are some more business store where one
can find telecom products
Interpretation- when the research was completed we took the sample of the selling of SIM cards and
divided it into parts as per retailer’s information. I found that customer shown their interest in Vodafone
services more than any other company, BSNL also got good percentage but not satisfactory, as per the
company’s potential. This can be increased by improving marketing strategy and implementing that in a
proper way.
Interpretation- in terms of sales BSNL is not too behind than Airtel, which was the best gainer of the
last month, BSL can do much better than this if it come back with its full potential. This is not the exact
figure of the selling but an approximately idea. BSNL has a strong customer base the only thing is
needed to make BSNL the India’s number one company is proper implementation of the marketing
strategies.
Interpretation- when I asked this question to the retailers they respond me in a straight way that none of
the distributer come here to supply the products we have to go to the distributer for the SIM cards this
was the main reason of not selling the SIM cards. There were also some factor affecting the selling of the
SIM cards, second reason was the commission provided by the BSNL, they were not satisfied with it.
Some of the retailers had different thoughts about this as per them the activation process is very lengthy
and critical therefore they do not entertain selling BSNL SIM cards.
16
14
12
10 BSNL
Airtel
8
Vodafone
6
Idea
4 Reliance
0
How many times distributers visit the shops in a month
Interpretation- It was found that BSNL distributer are very lazy and not interested in roaming around
in the market this is one of the main factor why BSNL is no longer the number one telecom company in
INDIA whereas others company’s distributer visit the market very often to fulfil the demand in the
market and they try to get some information if there is any problem regarding the services and products.
Retailers were very upset about the kind of behaviour BSNL persons do with them
Question-7
Interpretation- all the other telecom services provider has distributed their
promotional materials at the shops; they themselves go there to install glow sign
boards banner posters and any other promotional material whereas I did not find
any kind of BSNL’s promotional material at any shop where I took the interview. If
there is no promotional material at the shops how the customers will come to know
that what are the current plans and what are the plan prices. So here BSNL is
missing the very important P among the 4Ps of marketing which is affecting BSNL’s
sales and revenue.
Interpretation- BSNL gives good commission to the retailers but they are still not
satisfied because they feel that BSNL is making a huge profit therefore it must
increase the commission this will help retailers to promote BSNL services among
the customers.
FINDINGS
• It was found in the research that there were no promotional material at any telecom shop related
with BSNL whereas all the other companies had their banner, posters and many more
promotional material in bulk at the shops.
• BSNL distributer never visits to the market. No one can take action against them because of
being a legal distributer even if they don’t perform their duty.
After getting the questionnaire filled it was found that more than 80% of the respondents were dealing
with BSNL’s products like SIM cards, recharge, internet connections etc. It shows that people are using
and liking BSNL’s services.
But it was also found that most the respondents were not in the favour of its network availability,
roaming services and call rates. It shows that BSNL must take a step to improve it.
On the basis of questionnaire it was found that BSNL customer care facility is so poor. So BSNL should
increase its customer care facility to remove the grievances of customers.
People are not satisfied with its services so that for existence in the local market BSNL must provide
better services than its competitors. The retailers also mentioned that there neither banner nor posters nor
hoardings of BSNL whereas on the other hand all the other companies distributes these kind of
promotional material ant install themselves at the shops so that customers can know the present plans and
prices. BSNL is lacking in this part of promotional strategy. BSNL have to make sure that the product
should be available at the shops as the other companies do
LIMITATIONS
this it was not possible to get full information about the respondents.
2. As summer training is going under summer season so some time people are less interested in
filling up questionnaires.
4. If the respondents answer does not falls between amongst the options given then it will turn up to
be a biased answer.
5. Contacting potential respondents and if they were not using internet services then moving on to
• After getting the questionnaire filled, it was found that although BSNL is providing a lot of
services but due to its weak marketing strategy people are not aware about its services. So BSNL
must take a step or adopt aggressive promotional activity for selling out of these services.
• People are not satisfied with its services so that for existence in the local market BSNL must
provide better services than its competitors.
• Though BSNL advertisement is rarely shown on television yet many people could recall it as per
the data of questionnaire. It shows that there is only need to give advertisement only to
rememorize customers. Because BSNL is very strong brand name.
• Company should introduce promotional schemes like prepaid cellular service with low tariff rates
and low call rates.
• Try to change the perception of the people through Word Of Mouth that BSNL is good telecom
service provider. Its progress is lower than other companies because TRAI has fully control over
it.
• The work assigned by the company is to make questionnaire on the topic of “comparative study
of BSNL with its competitors”. And get it filled with the respondents. This questionnaire was
basically made to know that where BSNL is actually stand in the eyes of its customers.
• After getting the questionnaire filled, it was found that although BSNL is providing a lot of
services but due to its weak marketing strategy people are not aware about its services so BSNL
must take a step or adopt aggressive promotional activity for selling out of these services.
• People are not satisfied with its services so that for existence in the local market BSNL must
provide better services than its competitors.
Books
1- Marketing Management (Philip Kotler)
2- Research Methodology
Secondary sources
3- BSNL files