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In partial fulfillment of PGDM Degree 2009-11 Submitted ByMANISH KUMAR SINGH PGDM (2009-11) Redg no: 420921105
ACKNOWLEDGEMENT
I wish to acknowledge my specific indebtness to Prof.Dr.PRABIR PAL Director, REGIONAL COLLEGE OF MANAGEMENT Bhubaneswar,who brought this opportunity to perform summer training programme. I wish to extend my sincere gratitude towards Mr.KIRAN KUMAR BEHERA (Reliance World) for accepting me as a summer trainee and assigning this project to me. I am extremely grateful to my teacher Mr.PRABHURAM TRIPATHY for his valuable guidance and best possible help during my project work. I deeply thank my parents for their moral support and advice which enabled me to achieve success in the project work. Thanks to other summer trainees as well for their valuable co-operation and suggestions given me throughout.
DECLARATION
The researcher hereby declares that the dissertation is a result of his own research work and the same has not been previously submitted to any examination of this university or any other university.
PGDM, 420921105
This is to certify that Mr. Manish Kumar Singh a student of Regional college of management, Bhubaneswar has undergone the summer internship project at RELIANCE WORLD, FORTUNE TOWER, BHUBANESWAR as partial fulfillment of his 2 year PGDM Programme under AIMA, New Delhi. This title of the project is THE EFFECTIVENESS OF SALES PROMOTION IN RELIANCE COMMUNICATION The researcher had taken sample space to carry out the summer internship project and interacted with 100 respondents in order to obtain their satisfaction and perception parameters of company. I appreciate hard work done by the researcher and wish him all the success in his professional endeavor.
Mr. Prabhuram Tripathy (Lecturer, Marketing Department) Regional college of management. Bhubaneswar, Odisha.
GUIDE CERTIFICATE
This is to certify that MANISH KUMAR SINGH continuing PGDM in Regional College of Management, Bhubaneswar, Orissa bearing Regd. No. 420921105 of the batch 2009-11. Successfully accomplished the summer internship project in the topic entitled The Effectiveness of
Sales Promotion in Reliance Communication under my supervision
and guidance. Mr. Manish Kumar singh has put his every effort to extract something new thought this management research and the above said topic. To my knowledge and belief this research result are new and has been submitted anywhere else rather of the sole purpose of SIP of Regional College of Management, Bhubaneswar. I wish him every success and achievement throughout his life and also in his academic endeavor.
MR. KIRAN KUMAR BE ERA STOR MANAGER, RELIANCE WORLD. FORTUNE TOWER. B UBANESWAR, ODISHA.
TABLE OF CONTENTS
S.NO. 1. TOPIC Company Profile About Reliance Communications Reliance Group Awards & Recognition Mission Vision of Company Products Fixed Wireless Phones Mobile Phones(CDMA) 3. Plans Post Paid (CDMA) Prepaid plans (CDMA) Research Methodology Objectives Importance Research & Findings Graphical representation Leanings Market Share Comparison SWOT Analysis Conclusion Recommendation Bibliography Annexure(QUESTIONNAIRE) Abbreviations
2.
4.
Think big, think fast, think ahead. Ideas are no ones monopoly. - Dhirubhai H. Ambani
EXECUTIVE SUMMARY
BOARD OF DIRECTORS
y Mr. Anil D. Ambani Chairman y Mr. A.K PURWAR Director y Mr. S.P TALWAR Director y Mr. DEEPAK SHOURIE Director y Mr. J.RAMACHANDRAN Director y Mr. SATISH SETH Managing Director
AUDITORS
y M/s. Chaturvedi & Shah
RELIANCE GROUP
Reliance Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among Indias top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Energy Ltd). Reliance ADA Groups flagship company, Reliance Communications, is India's largest private sector information and Communications Company, with over 30 million subscribers. It has established a pan-India, highcapacity, integrated (wireless and wire line), convergent (voice, data and video) digital network, to offer services spanning the entire infocom value chain. Other major group companies Reliance Capital and Reliance Energy are widely acknowledged as the market leaders in their respective areas of operation.
y y
World Brand Congress, Chair for Yr.2009 -10 granted to RCOM, November'2009 Business Today along with TAM rated Simply Reliance TVC as the most watched Ad in the month of October 2009.
2008 Total Network TVC s Kedarnath & Highway rated as No.1 campaign in India for the month of Aug 08 & Sept 08 Anil Ambani The Telecom Person of the Year 2008 by Light Reading 2007
January 10
y y
Reliance Communications market capitalization tops Rs 1 lakh crore (1 trillion rupees or 24.39 billion US dollars) on Bombay Stock Exchange
February 16
Govts Rural Telephone Scheme(RDEL)through Reliance Communications successfully closes by March 31,2007
April 6
Reliance sets a new record, one million Classic handsets sold in just one w eek
May 14
MISSION
VISION
We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India.
We will offer unparalleled value to create customer delight and enhance business productivity.
We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.
PRODUCT
DEFINITION:
A product is a bundle of physical service and symbolical particulars expected to yield satisfaction benefits to the buyers.
(Phillip Kotler)
A product is a complex of tangible and intangible attributers, including packaging, colors, price, manufacture and retailers service which the buyer may accept as offering satisfaction of wants of needs.
(William J Stanton)
Current models
CLASSIC 2208
CLASIC WP 820
LG LSP 410
CLASSIC WP 82
RELIANCE MOBILES
POSTPAID PLANS
Rental Clip Plan charges Monthly commitment Free SMS(Rs) Local/National * Excluding Roaming Free Local Talk Time Worth Rs. * Excluding Roaming Local/Intracircle Reliance GSM Reliance CDMA Offnet Mobile Offnet Fixed Intercircle Reliance GSM Reliance CDMA Offnet Mobile International US, Canada, Fixed Lines In Europe, Australia, New Zealand And South East Asia Mobile Phones In Europe, SAARC, Gulf, Middle East, UAE, Africa And Rest Of The World. Bissau, Nauru, Norfolk Island, Sao Tome, Sakhalin, Solomon Island, Tokelau, Tuvalu, Vanuatu Rate/SMS (164 characters) Local SMS (Reliance GSM Local SMS (Reliance CDMA) Local SMS Offnet National SMS (Reliance GSM) National SMS (Reliance CDMA) National SMS Offnet International SMS National Roaming Plan Local Outgoing Calls - Reliance GSM Local Outgoing Calls - Reliance CDMA Local Outgoing Calls Offnet STD Outgoing Calls - Reliance GSM STD Outgoing Calls - Reliance CDMA STD Outgoing Calls Offnet Incoming Calls Roaming SMS Local (Reliance CDMA) Local (Reliance GSM) Local (Offnet) National reliance (GSM) National (Reliance CDMA) national (Offnet) ILD call rates on Roaming US, Canada, Fixed Lines In Europe, Australia, New Zealand And South East Asia
199
NIL NIL Rs 199 Nil
Rs 150 Local+STD, Onnet + Offnet Rs 0.01/sec Rs 0.01/sec Rs 0.01/sec Rs 0.01/sec
299
NIL NIL
Rs 299 nil
Rs 299 Local +STD, Onnet + Offnet
0.50
Rs.6.4
Rs.6.4
Rs.6.4
Rs 9.19 Rs.40.00/min
Rs 9.19 Rs.40.00/min
Rs 9.19 Rs.40.00/min
Rs 5
0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
Rs 5
Rs 0.01/sec Rs 0.01/sec Rs 0.01/sec Rs 0.01/sec Rs 0.01/sec Rs 0.01/sec Rs 0.01/sec
Rs 5
Rs 1/ 180 sec Rs 1/ 180 sec Rs 1/ 180 sec Rs 1/ 180 sec Rs 1/ 180 sec Rs 1/ 180 sec
Rs 1/ 180 sec
Rs .6.40
Rs .6.40
Rs .6.40
PREPAID PLANS
Simply Reliance Plan MRP I/c Validity Rs.48 Lifetime*
Special Tariff for lifetime All Local Calls All STD Calls National Roaming All Local & STD Outgoing calls All Incoming calls International Call Rates : Countries/Region USA, Canada, Fixed lines in Europe, Australia, New Zealand Mobile phones in Europe, Bangladesh, Bhutan, Maldives, Gulf, Middle East, UAE, Africa, Rest of World Cook Island, Cuba, Diego Garcia, Guinea Bissau, Nauru, Norfolk Island, Sao Tome, Sakhalin, Solomon Island, Tokelau, Tuvalu, Vanuatu Satellite calls to Inmarsat region (00870) - call rate at Rs.5.83/second Local Application 50p Rs.3 50p Rs.5 Rs.6.40 per min. Rs. 9.19 per min. Rs. 40.00 per min. 50p 50p 50p 50p
SMS#
Vouchers(Rs.) Talk time(Rs.)
National International
RESEARCH METHODOLOGY
Methodology in the applied sense refers to various methods used by the researcher right from data collection and various techniques used for the same for interpretation and inference. Methods and techniques are often used synonymously in research literature. Research methodology is what must be done, how it will be done, what data will be needed, what data gathering will be employed, how sources of data will be selected and how the data will be analyzed and conclusions reached. When we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others.
(4) Ask them to take the complete view of the customer about the RCIL and its services and thus to generate need of Reliance products. (5) With the help of the questionnaire the company can make important changes in the training procedure
(2)
(3)
(4)
Research is important in solving various operational and planning problems of business and industry. It helps understanding perception of the employees about the training and accordingly designs the training process.
(5)
AREAS SURVEYED
In my project time I have visited in many areas in BHUBANESWAR so here is the information about the company which I have collected from them.Areas Surveyed: MAITREE VIHAR MANCHESWAR INDUSTRIAL ESTATE BAPUJI NAGAR Unit-3 OBSERVATIONS The schemes of RELIANCE COMMUNICATION are better in comparison to other. RELIANCE COMMUNICATION CDMA has a facility of Auto Roaming with better roaming plan. RELIANCE COMMUNICATION have strong customer segment in corporate. Billing problem Strong scheme for postpaid plan.
MAITREE VIHAR
reliance airtel idea bsnl others
idea 15%
airtel 20%
OBSERVATION DRAWN
I i t l I f t i
it ti l fl .BS I . il i i
i l t
t i ti ffi f ill Y, i l . ll .P ti
i l
ti l
t l ,f t t l i A A l f li , it BS i t .
, ll l
f li t t li i , AI K , AI VI A , A t ft l i t t ti i t t i l t i
reliance
airtel
idea
b nl
other
b nl 3 %
idea 13%
OBSERVATION DRAWN
t ti it i i
Si i i ti l . f i ti ffi .A BS i i t l i i li i i t i i it i i t i it tt i l . li i l it i t ti f i t l ft t i .
other 8%
reliance 26%
airtel 23%
t it i f
ll l
BAPUJI NAGAR
reliance airtel idea bsnl others
reliance 24%
airtel 23%
idea 18%
OBSERVATION DRAWN
B i li l t
ti l. l , i t l, i t t j i ill il
i l li t t . it t i
t li i .
li tl
t it f li f ll tl t t i li
tl it l t ff
U IT- 3
reliance airtel idea bsnl others
OBSERVATION DRAWN
Unit i f t li nt , t ffi nd identi l es. et l ti n f ill llecti n cent e t P eople prefer BS ore. But reliance eing t e oldest square f BS player as retained its arket share in comparison to snl and Airtel .But Airtel coming late has een successful in capturing a reasonable m arket share.
id a 16%
bsnl 9%
airt l 3%
th rs %
r lian %
PROMOTIONAL WORK
Sal s promotion is one of the four aspects of promotional mix. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public Relations.) Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Media and non-media marketing Communications are employed for a pre-determined limited time to increase Consumer demand, stimulate market demand or improve product availability. Examples include:
y y y y y y y
Coupons Discounts and sales, including Blue Cross Sale Contests Point of purchase displays Rebates Free samples (in the case of food items) Gifts and incentive items.
Sales promotions can be directed at the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called cons mer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with Unusual methods are considered gimmick by many. Under sales promotion I have done a survey for the web world franchisee and for that I have visited some areas which are as followsJANPATH MANCHESWAR BAPUJEE NAGAR MAITRI VIHAR JAYDEV VIHAR I have distributed the pamphlets, door to door or company to company selling, and have put stalls in the INDRADHANU MARKET, NAYAPALLY FOR TWO DAYS.
LEARNING
Doing a project in RELIANCE COMMUNICATION in BHUBANESWAR city, was a great opportunity to practically understand and experiencing the marketing field. I express my deep sense of gratitude to RELIANCE COMMUNICATION for giving me this opportunity and for providing platform to undergo training, and get the valuable knowledge of telecom industry. As RELIANCE COMMUNICATION is a telecom company the project was totally a marketing project hence it helped me to practically understand the telecommunication services. The company helped to understand various schemes. The company also helped me to understand every step of their competitors in the market. During the survey it is observed that what are the real problems faced by the customer. Meeting different people in various segments, interviewing with corporate and actual users helped me to learn the basics of telecom industry. During the survey I came to know the real competition between the major players of telecom industry. It helped me to understand the future of telecom industry with its opportunities and threats.
% 0%
38%
Reliance 59%
Reliance
Airtel
vodafone
Idea
BS
Aircel
eliance 3%
Idea 13%
vodafone 23%
BS 23%
Aircel %
Airtel 33%
BSNL
2 3 4 5
$54.78 $2.5
CELLULAR:
Rank
COMPANIES Revenue (in billions
2 3 4 5
FIXED:
Rank
COMPANIES Revenue (in billions
2 3 4
Telecom companies
NO of subscribers (09-10)
118,864,031
Reliance CDMA
Type
Pay per second
Billing pulse
1second
Rent
Rs199
Free SMS
Nil
3 minutes 1minute
Rs299 Rs 99
Nil Worth Rs 99
RELIANCE IDEA
Plan name Super seconds (Rs 250) Super minutes (Rs 250) Type Pay per second Pay per minute Billing pulse 1 second 1minute Activation Cost Rs 250 Rs 250 RENT 299 299 Free talk time Rs 175(usages home circles) Rs 225(usages in home circles Free sms n/a n/a
OBSERVATIONS DRAWN
Idea only have Rs 299 rental plans .But it has segmented these plans into super seconds &minutes plans where talk time of Rs -175&Rs 225 is given. But reliance is giving Rs 150 talk time in Rs 199 scheme where billing pulse is per second & Rs 299 talk time in Rs 299 plan where billing pulse is 3minutes. IDEA takes an activation charge of Rs 250 as well which is a extra cost incurred by customer. So reliance 299 scheme is a better option to have. But reliance should also think of other two plans as well.
RELIANCE
Plan name
Simple RS 199
Type
Pay per second
Billing pulse
1second
Rent
Rs199
Free SMS
Nil
3 minutes 1minute
Rs299 Rs 99
Nil Worth Rs 99
AIRTEL
Plan name Beginner Rs 149 Type PAY PER MINUTE Billing pulse PER MIN Rent Rs 149 Activation cost Rs 500 Free talk time Rs 100 will be added every month from the activation cost Free talk time of 149 from Airtel to other local mobile with Rs 100 will be added every month from the activation cost Free talk time of 149 mins from Airtel to other local mobile with Rs 100 will be added every month from the activation cost Free SMS N/A
Executive Rs 199
Rs 199
Rs 500
Youth Rs 249
PER MIN
Rs.249
Rs 500
OBSERVATION DRAWN: Reliance is giving talk time of Rs 150& Rs 299 in the plans of 299 &199. Whereas Airtel i s giving 149 talking mins from Airtel to local mobile .So It is better to have reliance postpaid than to take Airtel. But one threat which reliance poses from AIRTEL IS THE 200 free Sms that is given in plans (Rs 199& Rs 249).
STRENGTH
y y y y
Big brand name The new technology launcher (CDMA)
WEAKNESS
y y
Billing problems/locations Battery life of hand sets
Good network in INDIA Recently reach to a mark of 100 million subscribers in INDIA.
OPPORTUNITIES
y y y y y Introduction of black berry phones Growing data card market Growing market of CDMA phones Establishment of new business. Simply unlimited plan launch
y y y y
THREATS
Launch of B.S.N.L prepaid USB modem Big market share of Airtel growing in ORISSA Free Sms per month plan given By Airtel Threats from idea post paid plans
CONCLUSION
Reliance communication is a very big brand name and I am very thankful to the Reliance people to help me in completing my project in Reliance world. Reliance world provides me the good opportunities to make my skills stronger in marketing. I express gratitude to my project guide Mr. KIRAN BEHERA for giving me his useful guidelines and important time. While doing this project I have talked with many people and came to know about the market and I learnt that how the companies works and what they have to do for retaining their position in the market. Reliance world has trained me to face the challenges whatever in the market.
RECOMMENDATION
After completing my work on consumer perception towards reliance telecom services (postpaid mobiles & prepaid mobile phones CDMA) of Reliance world I want to recommend some important facts to the company about its products. y Company should come with some good and effective plans to make the customer satisfied. y Company should move towards the good customer relations so company should plan for the customer relationship management. y Reliance Communications is having good range of its products that is why they are challenging the competitors so make it large. y Sales Executives are not getting proper guidance and support from the seniors because of heavy workload on them so there is a need to manage workload so managing manpower is also a big task to do. y Majority of respondents complain about the after sales services like billings, and interruption in the network so the quality of after sales services should be improved. y Customer care services are very poor company should improve that part also. y Device installation and registration on site should be easier to work so that customers need not to give more papers at the time of purchasing a new connection. y Reliance Communication should make such strategies which suits the companys name and brand. Reliance Communication is already having a good brand image.
BIBLIOGRAPHY
WEBSITES: WWW.Reliancecommunication.com www.google.com
BOOKS PREFFERED: Marketing Management- Philip Kotler Marketing Management- AIMA STUDY Material NEWS PAPERS: THE ECONOMIC TIMES THE TIMES OF INDIA
ANNEXURE
QUESTIONNAIRE FOR MARKET SURVEY AND PRODUCT PROMOTION OF RELIANCE POSTPAID
1) What are the telecom services you are using? Reliance Airtel Idea Vodafone
Bsnl
other
2) If other then Reliance then Is there any possibility for other service provider? Yes No If Reliance then which one? Prepaid Post-paid
Yes 4) Which plan are you using currently and what is your bill? Plan - - - - - Bill - - - - - - -
5) Do you want to take any post paid connection with these plans?
(After telling him all the plans according to his usage of phone) Yes No
QUESTIONNAIRE FOR MARKET SURVEY AND PRODUCT PROMOTION OF RELIANCE NETCONNECT DATA CARD & USB MODEM
1) What are the internet services are you using? Reliance Airtel BSNL other 2) How much is your monthly bill? Bill Amount - - - - - -
VSNL
3) Do you know about the Reliance net connect data card and USB Modem? Yes No 4) You are using internet on Laptop Desktop Both 5) What is your usage? Surfing more Downloading more
(After telling him all the plans according to his usage of internet) Yes No
ABBREVIATIONS
ADAG GSM CDMA RCVL BSNL MTNL NSE BSE ANIL DHIRUBHAI AMBANI GOUP GLOBAL SYSTEM MOBILE CODE DIVISION MULTIPLE ACCESS RELIANCE COMMUNICATION VENTURE LIMITED BHARAT SANCHAR NIGAM LIMITED MAHANAGAR TELEPHONE NIGAM LIMITED NATIONAL STOCK EXCHANGE BOMBAY STOCK EXCHANGE