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CHAPTER-1 COMPANY POROFILE BRIEF HISTORY ORGANISATION STRUCTURE PERFORMANCE PRODUCTS/SERVICES PROBLEM FACED
INTRODUCTION
RESEARCH METHADOLOGY
EXECUTIVE SUMMARY
The project is an extensive report on how the BSNL Company markets its strategies and how the company has been able in tackling the present tough competition and how it is scooping up by the allegations of the quality of its products. The report begins with the history of the products and the introduction of the BSNL Company. This report also contains the basic marketing strategies that are used by the BSNL Company of manufacturing process, technology, production policy, advertising, collaboration, export scenario, future prospect and government policies. The report includes some of the key salient features of market trend issues. In todays world of cutthroat fierce competition, it is very essential to not only exist but also to excel in the market. Todays market is enormously more complex. Hence forth, to survive in the market, the company not only needs to maximize its profit but also needs to satisfy its customers and should try to build upon from there.
CHAPTER -1
COMPANY PROFILE: Bharat Sanchar Nigam Ltd. formed in June, 2011, 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. Within a span of five years it has become one of the largest public sector unit 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, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 18000 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.
BSNL is numerous Uno operator of India in all services in its license area. The company offers vide ranging & most transparent tariff schemes designed to suite every customer.
BSNL cellular service, CellOne, has more than 17.8 million cellular customers, garnering 24 percent of all mobile users as its subscribers. That means that almost every fourth mobile user in the country has a BSNL connection. In basic services, BSNL is miles ahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share of the subscriber base and 92 percent share in revenue terms. BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who access Internet through various modes viz. Dial-up, Leased Line, DIAS, and Account Less Internet (CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country. BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data and video through the same Backbone and Broadband Access Network. At present there are 0.6 million DataOne broadband customers.
The turnover, nationwide coverage, reach, comprehensive range of telecom services and the desire to excel has made BSNL the No. 1 Telecom Company of India.
Revenue Chart:
The Department of Telecom operations now known as BSNL has shown sustained growth in the last 15 years. The growth rate in 2007-2008 was 13.86%.
Capital Investment Chart: Annual investment in the telecom service sector was Rs. 86,720 crore in 2007-08 as against Rs. 71, 674 crore in 2010-2005, registering a growth of 21%. The total investment in the telecom services sector reached Rs. 200,660 crore in 2007-08, up from Rs. 178,831 crore in the previous fiscal.
The present turnover of BSNL is more than Rs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26 billion) for last financial year. The infrastructure asset on telephone alone is worth about Rs.630,000 million (US $ 14.37 billion).
BSNL plans to expand its customer base from present 47 million lines to 125 million lines by December 2008 and infrastructure investment plan to the tune of Rs. 733 crore (US$ 16.67 million) in the next three years. . When it comes to connecting the four corners of the nation, and much beyond, one solitary name lies embedded at the pinnacle - BSNL. A company that has gone past the number games and the quest to attain the position of a leader. It is working round the clock to take India into the future by providing world class telecom services for people of India. BSNL is India's no. 1 Telecom Service provider and most trusted Telecom brand of the Nation.
Driven by the very best of telecom technology from chosen global leaders, it connects each inch of the nation to the infinite corners of the globe, to enable you to step into tomorrow.
Basic Telephone Services The Plain old, Countrywide telephone Service through 32,000 electronic exchanges. Digitalized Public Switched Telephone Network (PSTN) with a host of Phone Plus value additions.
BSNL launched Data One broadband service in January 2005 which shall be extended to 198 cities very shortly. The service is being provided on existing copper infrastructure on ADSL2 technology. The minimum at Rs. speed 250/offered per to the only.
customer is 256
Kbps
month
Subsequently, other services such as VPN, Multicasting, Video Conferencing, Video-on-Demand, Broadcast
application etc will be added. Keeping the global network of Networks networked, the countrywide Internet Services of BSNL under the brand name includes Internet dial up/ Leased line access, CLI
based access (no account is required) and DIAS service, for web browsing and E-mail applications. You can use your dialup sancharnet account from any place in India using the same access no 172233, the facility which no other ISP has. BSNL has customer base of more than 1.7 million for sancharnet service.
BSNL also offers Web hosting and co-location services at very cheap rates. ISDN Integrated Service Digital Network Service of BSNL utilizes a unique digital network providing high speed and high quality voice, data and image transfer over the same line. It can also facilitate both desktop video and high quality video
conferencing.
Intelligent Network
Intelligent Network Service (In Service) offers value-added services, such as:
Free Phone Service (FPH) India Telephone Card (Prepaid card) Account Card Calling (ACC) Virtual Private Network (VPN) Tele-voting Premium Rae Service (PRM) Universal Access Number (UAN) and more
I-Net
India s x.25 based packet Switched Public Data Network is operational in 104 cities of the country. It offers x.25 x.28 leased, x.28 Dial up (PSTN) Connection) and frame relay services.
Voice over IP
E-Commerce
Telephone
Basic Telephone (Bfone)
Total Number of connections as on 30.04.2008 69593752
WLL (Tarang)
Total Number of connections as on 30.04.2008 45,95,807
as on 31.03.2008
28,64,174
STD Stations
Transmission Systems as on 31.07.2008 Transmission Systems Digital (Route kms) Coaxial Microwave UHF Optical Fiber Satellite Based Services (as on 31.07.2008) MCPC-VSATs IDR Systems (2 Mb/ 8 Mb) 301 64/17 7,024 73,730 55,130 5,80,196 (Route kms)
Mobile Services
Total number of connections
69593752
(As on 30.07.2008)
District Headquarters covered Total number of villages covered National Highway covered (Km) State Highway covered (Km) Railway route covered (Km)
Customer Care
Breief history
VISION
"As we spread wings to expand our capabilities and explore new horizons, the fundamental focus remains unchanged: seek out the best technology in the world and put it at the service of our ultimate user: our customer." These are the premise on which BHARAT SANCHAR NIGAM LIMITED has based its entire plan of action. BSNL has been at the forefront of technology and has revolutionized telecommunications with its world-class products and services. Established in 1985, BSNL has been a pioneering force in the telecom sector. With many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first govt. sector service provider to launch National Long Distance Services in India. BSNL had approximately 3.21 million total customers nearly 2.88 million mobile and 334,000 fixed line customers. Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Delhi, Gujarat, Haryana, Himanchal Pradesh, Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In addition, it also has a fixed-line operations in the states of Madhya Pradesh and Chattisgarh, Haryana, Delhi, Karnataka and Tamil Nadu and nationwide broadband and long distance networks.
BSNL has recently launched national long distance services by offering data transmission services and voice transmission services for calls originating and terminating on most of India's mobile networks. The Company is also implementing a submarine cable project connecting ChennaiSingapore for providing international bandwidth. BSNL also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments, it is also the first telecom company to export its products to the USA. BSNL Tele-Ventures' strategic objective is to capitalise on the growth opportunities that the Company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services. The Company has developed the following strategies to achieve its strategic objective: Focus on maximizing revenues and margins; Capture maximum telecommunications revenue potential with minimum geographical coverage; Offer multiple telecommunications services to provide customers with a "onestop shop" solution; Position itself to tap data transmission opportunities and offer advanced mobile data services;
Focus on satisfying and retaining customers by ensuring high level of customer satisfaction; Leverage strengths of its strategic and financial partners; and Emphasize on human resource development to achieve operational efficiencies. Businesses BSNL Tele-Ventures current businesses include Mobile services Fixed-line National and international long distance services VSAT, Internet services and network solutions Competitive Strengths BSNL Tele-Ventures believes that the following elements will contribute to the Company's success as an integrated telecommunication services provider in India and will provide the Company with a solid foundation to execute its business strategy: Nationwide Footprint - approximately 92% of India's total mobile subscribers resided in the Company's fifteen mobile circles. These 15 circles collectively accounted for approximately 56% of India's land mass; Focus on telecommunications to enable the Company to better anticipate industry trends and capitalize on new telecommunications-related business opportunities;
The strong brand name recognition and a reputation for offering high quality service to its customers; Quality management team with vision and proven execution skills; and The Company's strong relationships with international strategic and financial investors such as SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group and New York Life Insurance.
Brand Architecture:
BSNL is working on a complex three-layered branding architecture to: Create specific brands for each service, Build sub-brands within each of these services and Use BSNL
as the mother brand providing the group its corporate identity as well as defining its goal to become a national builder of telecoms infrastructure. BSNL- The flagship brand for cellular operations all across the country.
Brand Strategy:
To understand the brand strategy, lets first look at the brand building exercise associated with BSNL a brand that had to be repositioned recently to address new needs in the market. When the brand was launched seven years ago, cellular telephony wasnt a mass market by any means. For the average consumer, owning a cellular phone was expensive as tariff rates (at Rs 8 a minute) as well as instrument prices were steep sometimes as much as buying a second-hand car. BSNL could have addressed the customer by rationally explaining to him the economic advantage of using a mobile phone. But Sachdev says that such a strategy would not have worked for the simple reason that the value from using the phone at the time was not commensurate with the cost. Instead of the value-proposition model, we decided to address the sensory benefit it gave to the customer as the main selling tack. The idea was to become a badge value brand, he explains. So the BSNL leadership series campaign was launched showing successful men with their laptops and in their deluxe cars using the mobile phone. In simple terms, it meant BSNL was positioned as an aspirational brand that was meant for leaders, for customers who stood out in a crowd. Did it work? Repeated surveys following the launch showed that there were three core benefits that were clearly associated with the brand leadership, dynamism and performance.
These were valuable qualities, but they only took BSNL far enough to establish its presence in the market. As tariffs started dropping, it became necessary for BSNL to appeal to a wider audience. And the various brand-tracking exercises showed that despite all these good things, there was no emotional dimension to the brand it was perceived as cold, distant and efficient. Sachdev and his team realized that in a business in which customer relationships were the core this could be a major weakness. The reason? With tariffs identical to
competitor Essar and roughly the same level of service and schemes, it had now become important for BSNL to humanize and use that relationship as a major differentiation. The brand had become something like Lufthansa cold and efficient. What they needed was to become Singapore Airlines, efficient but also human. A change in tack was important because this was a time when the cellular market was changing. The leadership series was okay when you were wooing the crme de la crme of society. Once you reached them you had to expand the market so there was need to address to new customers. By that time, BSNL was already the leading cellular subscriber in Delhi with a base of 3.77 lakh (it now has 1.2 million customers). And with tariffs becoming more affordable as cell companies started cutting prices it was time to expand the market. How could BSNL leverage this leadership position down the value chain? Surveys showed that the concept of leadership in the customers minds was also changing. Leadership did not mean directing subordinates to execute orders but to work along
with a team to achieve common objectives it was, again, a relationship game that needed to be reflected in the BSNLbrand. Also, a survey showed that 50 per cent of the new customers choose a mobile phone brand mostly through word-of-mouth endorsements from friends, family or colleagues. Thus, existing customers were an important tool for market expansion and BSNL now focused on building closer relationships with them. That is precisely what the brand tried to achieve through its new positioning under the BSNL Touch Tomorrow brand campaign. This set of campaigns portrayed mobile users surrounded by caring family members. Says Sachdev: The new campaign and positioning was designed to highlight the relationship angle and make the brand softer and more sensitive. As it looks to expand its cellular services nationwide to eight new circles apart from the seven in which it already operates BSNL is now realizing that there are new compulsions to rework the BSNL brand, and a new exercise is being launched to this effect. Right now, the company is unwilling to discuss the new positioning in detail. But broadly, the focus is on positioning BSNL as a power brand with numerous regional sub-brands reflecting customer needs in various parts of the country. If BSNL is becoming more humane and more sensitive as a brand, BSNL has also understood that one common brand for all cellular operations might not always work in urban markets that are now getting increasingly saturated. To bring in new customers, the company decided that it needed to segment the market. One such experiment, launched last year, is Youtopia, a brand aimed at the youth in the 14 to 19 age bracket and for those who are young at heart. With its ear lier
positioning, BSNL was perceived as a brand for the well-heeled older customer; there was nothing for younger people. With Youtopia, BSNL hoped to reverse that. In order to deliver the concept, BSNL offered rock bottom tariff rates (25 paise for 30 seconds) at night to Youtopia customers a time when they make the maximum number of calls. It also set up merchandising exercises around the scheme like a special portal for young people to buy things or bid for goods. The company is now looking at offering other services at affordable prices to this segment which include music downloads on the mobile and bundling SMS rates with normal calls to make it cheaper for young people to use. The other experiment that BSNL has worked on is to go in for product segmentation through the Tango brand name. The brand was created to offer mobile users Internetinterface services or what is known as WAP (Wireless Application Protocol). The idea was to bring Internet and mobile in perfect harmony. The name was chosen from the popular movie title It Takes Two To Tango: basically, you need the two services to tango to offer customers a new choice, says Sachdev. This, however, had less to do with the branding exercise as with inefficiency of service (accusingly slow download speeds) and the limited utility of WAP services.
Subsequently, the ads were withdrawn, but the company re-iterated that the branding exercise could be revived because Tango will be the brand to offer GPRS services or permanent Internet connectivity on the mobile phone which BSNL is expected to launch soon.
The Magic:
Perhaps the more ambitious experiment has been with Magic the prepaid card. The idea was to make the brand affordable, accessible and, most importantly, feasible as a means of expanding the market even faster. PHASE I Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure him that he would have to pay only if he made a call. Such a customer used the phone sparingly mostly for emergencies and was not willing to pick up a normal mobile connection with its relatively high rentals (pre-paid cards do not include rental charges). To achieve its objectives BSNL did three things. One, the product was made available at prices ranging from Rs 300 to Rs 3,000 with no strings attached and was simple to operate. Two, the product was made accessible and distributed through small stores, telephone booths and even kirana shops so that the offering was well within arms reach. Third, to make the product more approachable to the customer, the company came with vernacular ad campaigns like BSNL Connecting India which appealed to local sensibilities.
This apart, the company roped in "Prity jinta "for a major ad campaign all across Delhi, a ruse that saw the number of subscribers go up from 5.47 lakh to 12 lakh today, overtaking Essars branded pre-paid card Speed, which was launched much ahead of Magic. The company is now reworking its Magic strategy even further. Earlier, the branding strategy was aimed at roping in only interested customers that is, customers who were already inclined to opt for mobile services. But now, with basic service providers having been allowed limited mobility at far cheaper rates, mobile service providers could find themselves under threat again. That is why the new exercise is aimed at co-opting non-adopters. While the exact strategy is under wraps, insiders say the new branding strategy would be aimed at offering them value which they had not perceived would be available from using a pre-paid card.
PHASE II
A combination of the film genre exposed through the TV medium designed to connect with the masses of India
Youth based - romance driven strategy platform makes the value proposition of BSNL.
All elements - user imagery, context, tone & language created to connect the category to the lives of the SEC B & SEC C segment the middle class non-mobile user.
BSNL positions itself on the platform of being excellent for emergency situations - increasing productivity as a part of everyday life. ````````````````````````````````````````````````````
The brand is positioned to be relevant to the mass-market who want to make all their dreams, hopes & desires come alive instantly. (At just Rs.300/- per month BSNL is so easy to buy.) Improving productivity, letting you befriend the world and opening up new horizons. The genre of this new strategy & campaign is Hindi cinema led. This genre connects millions across India. The spirit of romance, dancing the Indian cinema, well known to most as Bollywood, holds millions of Indians together as one. (Poignantly conveying that special feeling we all get when a dream is made possible and a victory of the heart is won).
The strategy & new brand campaign is targeted at the large untapped base of intending mobile customers from Sec A, B & C. The estimated
addressable market of such customers in the next two years is around 25 million in 20 states. The new strategy aims at correcting the perception that the mobile category is useful mainly for business or work related scenarios. The new strategy, brand positioning & brand slogan is an outcome of an extensive nationwide research and is an integral part of BSNL new multimedia campaign. Advertising. The campaign has been created by Percept
PHASE III BSNL to build a strong value proposition and accelerate market expansion through Indias first national pre-paid card TV brand campaign
First time ever in India - any pre-paid card brand gives such freedom to recharge any value
A combination of the film genre exposed through the TV medium designed to connect with the masses of India
Youth based - romance driven strategy platform makes the value proposition of" BSNL Connecting India come alive.
The value proposition is centered around a persons desire to make all his / her dreams, ambitions & aspirations instantly possible. The new campaign for BSNL is all about empowering millions of Indians to be on top of their lives.
The brand is positioned to be relevant to the mass-market who want to make all their dreams, hopes & desires come alive instantly .At a amount of your choice you can recharge your account with available validity time .Improving productivity, letting you befriend the world and opening up new horizons. It gives you the freedom to control your life in a way never possible before. Indeed, anything that you think is Connect with BSNL. The new brand sloga "Connecting India" been specially created to capture this effectively.
Talk Amount Service Tax (Rs.) 54 60 75 100 125 150 175 200 216 225 250 275 300 (8%) 4 4.44 5.56 7.41 9.26 11.11 12.96 14.81 16 16.67 18.52 20.37 22.22 Fees(Rs.) 25 25 25 25 50 50 50 50 85 85 85 85 85 (Rs.) 25 30.56 44.44 67.59 65.74 88.89 112.04 135.19 115 123.33 146.48 169.63 183.78 (Days) 5 5 5 5 10 10 10 10 20 20 20 20 20 Processing Time Validity
Talk Amount (Rs.) Service Tax Processing Fees(Rs.) Time (Rs.) Validity
(8%) 324 350 360 375 400 425 475 500 525 540 600 650 700 775 800 24 25.93 26.67 27.78 29.63 31.48 35.19 37.04 38.89 40 44.44 48.15 51.85 57.41 50.36 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 174.07 183.33 197.22 220.37 243.52 289.81 312.96 336.11 350 405.56 451.56 498.15 567.59 580.74
(Days) 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30
Tax ( Rs.) 850 900 (8%) 62.96 66.67 Fees(Rs.) 150 150 (Rs.) (Days) 637.04 683.33 60 60
1000 1080 1200 1300 1400 1500 1800 2000 2160 3000 5000 6000 7000 8000 9000 9999
74.07 80 88.89 96.3 103.7 111.11 133.33 148.15 160 222.22 370.37 444.44 518.52 592.59 666.67 740.67
150 150 150 150 150 150 150 150 150 150 300 300 300 300 300 300
775.93 850 961.11 1053.7 1146.3 1238.89 1516.67 1701.85 1850 2627.78 4329.63 5255.56 6181.48 7107.41 8033.33 8958.33
Other Brand Building Initiatives:The main idea is to stay ahead of competition for at least six months. Working on the above game plan BSNL is constantly coming up with newer product offerings for the customers. The focus, of course, is to offer better quality of service. To make the service simpler for customers using roaming facilities, BSNL has devised common numbers for subscribers across the country for services like customer care, food services and cinema amongst others. It will also launch a unified billing system across circles so, customers moving from one place to another do not have to close and then again open new accounts at another place. To assist customer care personnel to deal with subscriber queries, a storehouse of 40,000 frequently asked questions and their answers have been stored on the computers. BSNL expects that most of its new customers (one estimate is that it would be 60 to 70 per cent of the total new subscriber base) would come from the pre-paid card segment. So, they must be given value-added products and services which competitors dont provide.
BSNL, for the first time for a cellular operator, has decided to offer roaming services even to its pre-paid customers, but the facility would be limited to the region in which they buy the card. To ensure that customers dont migrate to other competing services (which is known as churn and ranges from 10 to 15 per cent of the customer base every month), the company is also working on a loyalty program. This will offer subscribers tangible cash benefits depending upon their usage of the phone. The loyalty program will not be only for a badge value, it will provide real benefits to customers. The idea is to create an BSNL community. Another key area which BSNL is concentrating its attention upon is a new roaming service launched in Delhi under which calls of a roaming subscriber who is visiting the city will be routed directly to his mobile instead of traveling via his home network. The company also offers multi-media messaging systems under which customers having a specialized phone with a in-built camera can take pictures and e-mail it to friends or store it in the phone. The cost per picture is between Rs 5 to Rs 7. BSNL is also aware that it has to make owning a ready-to-use cellular service much easier than it is today. A key area is to
increase the number of activation centers. Earlier BSNL had 250 BSNL Connect stores which were exclusive outlets (for its services) and about 250 BSNL Points which were kiosks in larger shops. Now activation can be done by all of them, and not only by Connect outlets, all within 15 to 20 minutes. In comparison, the competition takes two to four hours.
Pre- paid cards are really catching up with the mobile phone users and it is actually helping the market to increase. First, they are easier to obtain and convenient to use. Unlike post-paid, one need not pay
security deposits for picking up a pre-paid card. It is often available even with paanwalas. As befits a fast-moving consumer service, the game is now moving beyond price to expanding distribution reach and servicing a well-spread-out clientele with technology and strategic alliances. BSNL is focusing on two factors to make pre-paid cards more attractive. Keeping the entry cost low for consumers and making recharging more convenience.
BSNL is in the process of launching a new system in alliance with Mumbaibased company Venture Infotech which will enable a pre-paid card user to renew his subscription by just swiping a card. The system will not only save users the hassle of going out and buying a card every time it expires but also enable mobile companies to reduce the cost of printing and distributing cards.
BSNL Televentures has tied up with 'Waiter on wheels,' a company delivering food at home, to reach its Magic pre-paid cards to subscribers' doorsteps. The company is also joining hands with local grocery shops which will enable
users to recharge their cards by just making a phone call to the shop. Apart from improving the convenience of recharging, mobile operators are beefing up their distribution channels. The company is constantly innovating to enhance the value proposition for its pre-paid service. They are leveraging technology to expand their distribution network and deliver round-the-clock recharge options to its MOTS (Mobile On the Spot) subscribers. BSNL Cellular has also launched a special service, CareTouch, for high-value, corporate customers, providing them with instant, single-point access for any assistance they require. Customers can dial 777 and enjoy a slew of services, which includes easier payment of bills, service on priority basis, and valueadded services without any additional paper work. BSNL Cellular is offering a range of services without going through an interactive voice recorder ensuring that they save time. Dedicated CareTouch executives are expected to assist customers with any service on priority basis. Besides the regular proactive reminder calls for bill payment, customers can also call CareTouch for bill payments at free of cost. BSNL presented MTV Inbox; the first on-air SMS based interactive music dedication show exclusively for BSNL and BSNL Magic customers. Highly interactive VJ based show with real-time feedback mechanism. Both brands joined hands to target the high growth youth segment.
BSNLs View on its Branding strategy:First, brand building efforts in todays context have to be seen in a more holistic manner. Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts. Unflinching orientation to customer needs is the second key success factor. Customers (be it for industrial products or consumer goods and services) across the world are more informed and, at the same time, becoming more individualistic in their needs and far more demanding with the passage of time. Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging customer needs, and then reacting in real-time are essential to attract and retain customer loyalty a key element of creating brand equity in the present situation. Customizing the product (and communication of its benefit) to meet the specific needs of various consumer/customer sub-segments is the third element in creating brand appreciation. As far as allocation of time and financial resources are concerned, too many companies mistakenly allocate a disproportionate amount on mere advertising and promotion. This is not to say that advertising and promotion are less relevant. On the contrary, with more choices and higher media clutter, businesses need to budget for an increasingly higher spend on their brand promotion but this has to be undertaken in tandem with enterprise-wide reengineering of the business philosophy and core design, production, and delivery operations for the product itself. The positive spin to this argument is that by first addressing the fundamentals, the enterprise itself becomes more competitive. This can be the beginning of a virtuous
cycle wherein brand equity continues to increase as the enterprise sustains delivery of an appropriate product or service at an ever increasing value. It is, however, crucial to note that in the years to come, not only will the cost of building a regional or a national (or an international) brand will continue to rise but also the time taken to do so will be longer and will need sustained and focused efforts
PROBLEM FACED
1. PROBLEM OF CUSTOMER AND DEALER MEET 2. Problem price is too high 3. Problem of defective in some service 4. Problem related to segmentation
CHAPTER-2 INTRODUCTION
In the early 1990s, the Indian government adopted a new economic policy aimed at improving India's competitiveness in the global markets and the rapid growth of exports. Key to achieving these goals was a world-class telecom infrastructure. In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India. The circles are further classified under "A," "B" and "C," with the "A" circle being the most attractive and "C" being the least attractive. The regulatory body at that time the Department of Telecommunications (DOT) allocated two cellular licenses for each metro and circle. Thirty-four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in more than one metro, three circles or both. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and Assam had only one bidder each. In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha, and the president officially announced the TRAI ordinance on 25 January 1997. The government decided to set up TRAI to separate regulatory functions from policy formulation, licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole responsibility of the DOT. High license fees and excessive bids for the cellular licenses put tremendous financial burden on the operators, diverting funds away from network development and
enhancements. As a result, by 1999 many operators failed to pay their license fees and were in danger of having their licenses withdrawn. In March 1999, a new telecom policy was put in place (New Telecom Policy [NTP] 1999). Under this new policy, the old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.
Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all operators; Deptt of Telecommunications (DOT) restructured, with operations and policy making roles vested in different bodies. Issues relating to unfavorable interconnect terms for private operators, pass through income, intra circle long distance, spectrum availability and allocation and the like remained unresolved for long periods. Interconnect terms since rationalized, risks on pass through income to DOT / BSNL(BHARAT SANCHAR NIGAM Ltd.) resolved to the satisfaction of all parties with changes in methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared with vacation of frequencies for usage by GSM operators. Problems in Financial closures due to: Licensing tenure of 10 years Large upfront cash requirements from promoters due to heavy license fee burden in initial stages of deployment Asset based financing approach by Indian Financial Institutions. Licensing tenure increased from 10 to 20 years Large upfront cash requirements for license fee payments mitigated with migration to revenue sharing mode allowing promoters to deploy more capital for capital expenditure; project financing being considered by most financial institutions. Foreign ownership / change of partner limitations
Foreign ownership norms clarified, and change of partners allowed as a matter of routine allowing ease of entry / exit - paves the way for full control of businesses by foreign companies. Inadequate growth of market / subscribers Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective measures taken, market / subscriber base expected to zoom
Hutchison Whampoa, via Hutchison Telecommunications (HK), acquired major stakes in Sterling Cellular (December 1999), Usha Martin Telecom (mid-2000) and Fascel (September 2000). Through a partnership with local company, Kotak Mahindra Finance, Hutchison Whampoa practically controls Fascel and Usha Martin Telecom, thus circumventing the 49 percent limit on foreign ownership in Indian cellular operators. Hutchison Whampoa is also the controlling shareholder of Hutchison Max Telecom. Not to be outdone, BSNL Enterprises another major cellular player acquired control of JT Telecom, which was later renamed BSNL Mobile (December 1999), and Skycell Communications renamed BSNL Mobinet (August 2000). BSNL also acquired the Punjab license of Essar and started operations, giving competition to the lone operator there, Spice Communications. Going forward, BSNL is likely to merge all its cellular companies into one entity. Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in four metros and 13 circles. BSNL emerged as the No. 1 bidder with eight new licenses, followed by Escotel with four, Hutchison with three, and Reliance and Idea cellular with one each. BSNL and Hutchison have already commenced operations in all the circles while Idea is set to launch in Delhi. Escotel and Reliance have not made any headway. BSNL, the third cellular operator for Delhi and Mumbai, started services in March 2001. BSNL, as the third nationwide cellular operator, launched services in Kolkata and Bihar in January 2002. This was followed by Tamil Nadu in July 2002. A nationwide launch was scheduled for 2 October 2002. However, this has been postponed until after mid-October. Once BSNL rolls out its service, most telecom circles will have four cellular operators. There will be tremendous competitive pressure, which will result in lower tariffs. Future rate cuts are expected, which will
drive demand, together with falling handset prices and the introduction of prepaid services. In the midst of declining interest in technology stocks, BSNL came out with its longawaited initial public offering (IPO) in January 2002. Leveraging on the success of its cellular service, the company got a very good response from the primary market. The total size of the IPO was 185 million shares at a floor price of Rs10. The issue was oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used to fuel its investment in long-distance, basic and cellular services. As of October 2002, only BPL Mobile has launched commercial general packet radio service (GPRS) in Mumbai. However, large-scale uptake remains elusive. While both BSNL and Idea have GPRS-enabled networks, there is caution on their part to launch the service. With hardly any applications, the success of GPRS remains a question.
IMPOR
Year 1851 1943 1985 1986 1991 1994 1994 September 1994 November 1994 December 1994 January 1995
Event First telephones in India Nationalization of telephone companies DoT was created Creation of BSNL and VSNL Telecom equipment liberalized Licenses for paging Telecom policy announced Guidelines for private sector participation in basic services Cellular licenses issued for metros Tenders for cellular licenses in 19 cities apart from 4 metros Tenders for 2nd operator in basic services apart from DoT on circle basis.
The National Telecom Policy of 1994 document, which laid out broad policy guidelines rather than a series of action points. Like other policies, it sought to achieve the impossible in finite time like improve quality of service and its availability, wide coverage (a phone in every village), at reasonable rates, etc. The targets in quantifiable terms were installation of 9.5mn additional lines, telephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had also allowed private operators in value added services. To facilitate licensing, the nation was divided into 20 circles (akin to a state) for basic and 21 circles for cellular telephony. Mumbai falls in Maharashtra circle and Delhi in itself a circle. The basic premise on which competition has been introduced is that every circle will have one private operator apart from DoT/ BSNL for basic and two operators for cellular. DoT/ BSNL have the option to become the third cellular operator in future. Government did not achieve most of its stated targets. The basic theme, which was broadening the reach of telephony in India, has not been met. Even liberalization policies were not implemented properly. The regulator TRAI was set up after delays and confusion and even after its creation, DoT continued to fight with it in courts. It was also affected by the resource crunch, and financing options like BOT, BOOT and BOLT was not used at all. The major policy direction it showed was to allow private sector entry in both basic and value added services. The intention, though noble failed to achieve its goals because of improper implementation, the economic costs are still borne by the end user. The telecom sector has witnessed some fundamental structural and institutional reforms in the past decade. telecom equipment manufacturing was completely deregulated in 1991. Value-added services (including cellular services) were thrown open to private sector participation in 1992. Basic services were opened to private
participation in 1994 by dividing the country into 21 telecom Circles and allowing one private operator per Circle to compete with DoT. An independent telecom regulatory Authority of India was set up in 1997. A new Policy for Internet Service Policy Providers (ISPs) was announced in 1998 allowing independent service providers to enter the sector ending the earlier monopoly of VSNL. Reorganization of DoT, separating policymaking function and service provision and corporatization of DoT's operational network are two major institutional reforms, which need to be implemented.
1. To identify the difference in market performance of BSNL industry. 2. To study the market of BSNL Industry in big scale sector. 3. To compare various parameters of manufacturing process, technology, production policy, advertising, collaboration, export scenario, future prospect and government policies.
SCOPE
Corporate may promote their products directly to consumer through advertising and promotion and/or direct marketing efforts or through reseller and sales people. (selling function exist mostly in large corporation and smaller companies that is as a link to reseller or dealers in B2B transaction). Depending on the role define by the org., the responsibilities and specific task of sales people may differ, but ultimately these task are design to help attain communication and marketing objectives. it tells management has been achieved through public relation activities . it provides management with a way to measure public relation achievement quantitatively. It gives management way to judge the quality of public relation, achievement and activities. It helps personal observation and reaction. Matching objective and results. Public opinion and surveys.
RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective of the project is to compare BSNL with the existing competitors in the market and the impact of landline & WLL on BSNL, the research methodology adopted is basically based on primary data via which the most recent and accurate piece of firsthand information could be collected. Secondary data has been used to support primary data wherever needed.
# The date during which questionnaires were filled. # Some dealers were also interviewed to know their prospective. Interviews with the managers of GSM service providers were also conducted. # Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given. Sources of secondary data Used to obtain information on, current issues, policies, procedures etc, wherever required. # Internet # Magazines # Newspapers # Journals
LIMITATIONS
No project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. The following points in this direction would add to our total deliberations:-
1. During the study, on many occasions the respondent groups gave us a cold shoulder. 2. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied. 3. Lack of time is the basic limitation in the project. 4. Some retailers/wholesalers refuse to cooperate with the queries. 5. Some retailers/wholesalers gave biased or incomplete information regarding the study. 6. Money played a vital factor in the whole project duration. 7. Lack of proper information and experience also because hurdle for me. 8. Some retailers did not answer all the questions or do not have time.
AGE GROUP
70% 60% 50% 40% 30% 20% 10% 0% 15-21 21-28 28-35 15-21 28-35 21-28
Occupation Graph
OCCUPATION
EXECUTIVES
HOUSEHOLDS
STUDENTS
Series1
As the above graph shows that 55% of the total people interviewed are working. So, these people are the ones who are the maximum users of mobile phones. They are the young executives, managers, Tele - callers etc. who require mobile for their official purposes. The next category is the households, who are either housewives, small units which operate from their homes etc. They are 20% of the whole . The next segment is the students. They are 15% of the whole. And 10% of the whole is a category who are the professionals.
OTHERS
55%
15%
20% 10%
SERVICE PROVIDER
60% 50% 40% 30% 20% 30% 10% 0% 15% 5% 50%
Series1
The above graph shows a slice of 50%. These are the total no. of people who are using BSNL. It seems that people are more aware of BSNL than any other brand. The next popular brand is BSNL. 305 of the people interviewed had BSNL connections. The next popular brand was Idea. 15% people had Idea connections. As it came very late in the market when BSNL had established it self very well. So, that could be one of the reasons of such a low percentage. The remaining 5% had trump connections.
10%
As the above graph clearly shows that customer services at BSNL is 60% of the people are dissatisfied with the customer services provided by BSNL. They are the ones who have the maximum share in the market but they are lagging behind in the customer services. 10% of the people were fully satisfied with the customer services of BSNL. This could leave an impact on the mind of the consumer. He can even switch over his brand. 20% of the people seemed partially satisfied with the customer services and only 10% seem to be fully satisfied with BSNLs customer services, which is a very small amount.
TYPES OF CARDS
90% 80% 70% CASH CARD 60% 50% 40% 30% 20%
10%
0% CASH CARD
SIM CARD
Cash cards seemed quite popular among the people interviewed. 85% of the total mobile users were having cash card connections. This means that the cash cards should be easily and readily available in the local markets. BSNL should make sure that is available in each and every nook and corner of the market. 15% of the people were having sim connections which is the regular bill.
SIM CARD
Monthly Expense
24%
12%
Rs 600 Rs 450
64%
Rs 200
60%
50%
40%
10%
0% YES NO
WLL seemed to be a new word for many of the people. 45% of the people were not at all aware of such a technology. So, in order to get the answer for this question they were first explained the concept. Only, 55% people knew what WLL is all about.
90% 80% 70% 50% 40% RELIANCE 85 % RELIANCE 60% TATA INDICOM 15% TATA INFOCOM
30%
20% 10% 0%
Reliance was the brand which was popular amongst the interviewed people. As Reliance had done so much advertising and has it banners and hoarding spread all over Delhi. So, this could be one the reasons of its popularity. Tata was hardly a known brand in this new field. Possibly, because of less promotions done by them as compared to Reliance.
On the basis of analysis of the questionnaire I have found that the maximum no. of people who use mobile phones are in the age group of 20 to 28. who are the young executives and other office goers. They spend a maximum of RS. 500 as their mobile expense. There is more no. of prepared cards than postpaid cards. The mobile users want to spend money side by side than to spend money at the end of the month on a big bill. Now when I compared BSNL with its competitor from the point of view of the consumer I found that on the basis of Tariff plan, value added services and billing accuracy BSNL is at par or ahead of its competitor but in the case of customer care and availability they lag behind their competitors. As, BSNL has a hold in the market because it has the maximum no. of connections, so it must improve upon it customer services. As far as WLL is concerned people are aware about it but not many people are aware about Tata. They only Know more about Reliance. People at this point of time are not interested to switch over from GSM to WLL.
SWOT ANALYSIS
Strengths
Being one of the largest companies in India the company has achieved a degree of focus in its core business of its products. It has a strong brand name, superior quality products and an enviable distribution network. It has a clear and well-defined organization structure and limits of financial authority. Increase in advertisement spends affect the companys margins. The companys bottom line falls victim to the bloated and highly paid workforce, which affects its margins.
Weakness:
1 Little efforts over the Advertising of products. 2 Distribution channel is not accurately categorized. 3 Premium priced products, hence cant compete in low price segment. 4 No separate strategy for rural market.
Opportunities:
The company's financial performance can receive a major boost from its cost reduction efforts. There is a lot of scope of product and market diversification.
Exports of products will also have huge chances in the coming years. BSNL's business has ample scope for gaining market share from the unorganized sector. Rural penetration too holds vast potential to bring about growth.
Threats The slowdown in the economy has restricted topline growth of most FMCG majors and for BSNL also it will be difficult to maintain historical growth rates in such a depressed scenario. Companys major raw materials are influenced by government policies / controls as well as vagaries of the monsoons. Fluctuations in the prices of raw materials would have significant impact on costs and margins of the company. Moreover, inordinate hike in Broad Band Internet products would also increases companys production and distribution cost.
CHAPTER-4 CONCLUSION
After analyzing the findings of the research, I can conclude that BSNL lagged behind its competitors as far as customer service and availability is concerned. The maximum no. of people who use the mobile are in the age group of 20 to 28. Cash cards are the most popular type of mobile connections, as they are consumer friendly and recharging the connection is not a problem. Maximum no. of people spend RS 500 on their connections. As BSNL is the only company having the maximum no of mobile connections so it must seriously look into the loop holes of the existing customer service department. As we know that now BSNL has already launched its product with logo Connecting India has already became popular in market. So we can say that inspite of so many competitor in the market BSNL is having a good position just because every time, it tries its best to understand the need of its important customer.
SUGGESTIONS
Following are the few suggestions to BSNL for improving the market share and image of the products concerned.
1. PRODUCT
*Modification must be brought about in BSNL, in terms of quality. Its demand should be increased.
2. PLACE
* The brands must be made available easily in, PCO & general stores.
3. PROMOTION
*Company
must
undertake
extensive
promotional
activities
like
advertisements must be released in different Medias to create brand awareness. *Free samples should be distributed among the prospects. Sales promotion tools like gifts, contests and coupons must be given to retailers as well as customers and prospects. * Catalogues should be distributed among customers.
RECOMMENDATION
I have made following recommendation to the company after doing the summer training there:
1 The company should modify its credit policy as they only target the cash paying customers who are not easy to trace. 2 The company should emphasis more on the quality of Pharmaceuticals Products it was mostly claimed by the exporters that their receipts from company doesnt matches with the samples quality shown before giving orders. 3 The company should makes its marketing strategy flexible enough in order to face competition. 4 The company should keep an eye on the proper delivery of the goods to exporter on time, as it has been recommended by exporters to make the delivery on time. 5 The company rate policy must be flexible enough to catch new customers because if company offers lower price to a new customer then he may continue buy the goods and can be a permanent customer for the company. 6 The company should offers such rate in the market so that it may able to catch a bigger market share and it should be able to compete with the local traders and commission agents while having a brand name. The company should take the opinion of exporters from time to time to know what problems they are facing from the companys side. And if any change they require in present supplying condition?
CHAPTER - 5 BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem in details the following Books, Magazines/Journals and Web Sites have been referred. All the material detailed below provides effective help and a guiding layout while designing this text report.
Websites:
www.bsnl.co.in www.google.com www.india.com
Magazines:
BSNL (2 July to 10 July 2010) BSNL India page of HT paper (Thursday 1December 2010) Cowards India (26 December to 4 Jan. 2010)
CHAPTER 6 APPENDIX
QUESTIONNAIRE
Dear Sir/Madam, I am a student of MBA of Raj Kumar Goel institute of technology, Ghaziabad doing my summer training project on consumer behavior from BSNL. Please give your precious time for filling these details.
Q.1 For how long you have been using BSNL Product?
1 Yes 2 No
Excellent
Good
Average
Below Average
1 Yes 2 No.
4 Operators reference 5 Pamphlets and catalogue 6 Reference from friends and relatives 7 Any other
Q.7
What are the features you look for in a product before making
purchase
1 Brand credibility 2 Price and Discount 3 After sales services and parts, network 4 Value for money 5 Vehicle performance 6 Add on features or ergonomics of design
Q.8.
Which of these marketing / sales schemes attracts you while purchasing any
connection?
Q.9
If you have to purchase a new connection or product in near future, which Brand will you go for and why?
Q.10
if
yes then how? Are you satisfied with these promotional activities? Very Satisfied Satisfied Somewhat Satisfied Not satisfied
Q.11
How would you rate BSNL performance as your expectation on 5 points scale
Q.12
What are you suggestions for improving the product quality, service availability and parts availability? _______________________________________________________________ _____________________________________