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Ankur Budhiraja
(Project Guide)
TABLE OF CONTENTS
1)CERTIFICATE OF AUTHENTICITY
2)ACKNOWLEDGEMENT
3)EXECUTIVE SUMMARY
History
Officers:
Chairman: Anil D. Ambani
Head of Branding & Marketing: Sanjay Behl
Corporate Communications: Jimmy Mogal
• Prof. J Ramachandran
• Shri A.K.Purwar
Footprint
At present, Reliance Telecom's cellular services are available in
340 towns within its eight-circle footprint. Reliance Infocomm also
offered for the first time in India, mobile data services through its
R-World mobile portal. This portal leverages the data capability of
the CDMA 1X network.
Customer Base
As of March-2007 Reliance Infocomm
• Had user base of 28 million, adding 1.2million users in
March-2007 alone.
• Is aggressively expanding the reach of its network at the
expense of customer satisfaction in order to reach more
subscribers by extending its services.
• Plans to expand it’s GSM network to 4,000. It is estimated
that the mobile market in India will grow to 140 million
subscribers by FY 2008.
Market Cap
PRODUCTION MILESTONES: -
Year Date Achievement
1997 Nov. 15 The Dream, 1999
QUALITY
It was originally envisaged by Reliance Infocomm that these
services would enter the commercial phase in April 2003.
However, despite the nation-wide network of Reliance Infocomm
being fully ready in all respects, delays in concluding and
implementing interconnect agreements with other cellular and
basic service providers have necessitated a revision in the schedule
for commercialization. With these agreements now in place, and
implementation expected, the Reliance India Mobile services is
fully functional across the country from May 2003, which includes
full interconnectivity with all other service providers and two-way
SMS operability. Reliance India Mobile customers will be able to
make and receive calls from any landline, GSM cell phone or
CDMA mobile phone from any network in any part of the country
or the world.
Consequently, the Dhirubhai Ambani Pioneer Offer continued to
be available till June 30, 2003 in the top 104 towns and cities and
till July 31, 2003 in the remaining 569 towns in India. The 36-
month subscription period of existing customers of the Dhirubhai
Ambani Pioneer Offer was effective from the day of starting
commercial service.
To enhance customer experience, all services associated with
Reliance India Mobile was offered through 252 Reliance Web
World outlets and 1,000 field customer care desks, many of which
are already operational while the rest will start functioning all over
India in the next few weeks.
Reliance group director Nikhil Meswani said that the company was
planning to offer international roaming over its CDMA handsets,
which would enable the user to globetrot without changing the
handset or number.
COMPETITORS: -
Slowdown in Indian mobile growth
The Reliance Infocomm IPO itself will raise about Rs 3,000 to Rs 3,500
crore, Hutchison Essar will raise about Rs 2,000 to Rs 2,500 crore and Idea
Cellular will raise about Rs 1,500 crore, say sources. When contacted by FE,
all the three companies refused to comment on the IPO.
The Reliance Infocomm IPO has hit the market in 2005, followed by
Hutchison Essar and Idea Cellular IPOs in June 2006. The funds raised by
Hutchison Essar and Idea Cellular were used for expanding their presence in
more circles and Reliance Infocomm used the funds to expand its mobile
phone operations and broadband services. Reliance Infocomm is present in
all the 23 circles across the country. However, Hutchison Essar is present in
13 circles and Idea Cellular has a presence in eight circles and recently has
bagged the license to operate in three additional circles. Reliance Infocomm
has a market share of 19.89%, Hutchison Essar has a market share of
14.41% and Idea Cellular has a share of 6.85%.
After achieving dominant market share in the post paid segment and
establishing itself as No. 1 player in the mobility sector, Reliance Infocomm
today marked its entry into the prepaid segment by announcing path
breaking schemes that give customers free recharge vouchers worth nearly
the cost of a Reliance India Mobile (RIM) Prepaid handset that they buy.
Not only that, they can remain connected for a full one year without having
to buy new recharge vouchers.
The RIM Prepaid handsets are distributed through over 15,000 retail outlets
across India. Customers will be able to buy recharge vouchers from over
70,000 retail outlets across the country.
The tariff for RIM Prepaid is one of the lowest in the industry and simple to
comprehend with fewer slabs. All local calls, intra-circle calls and inter-
circle calls of less than 50 kms distance to another mobile phone have a flat
rate of Rs 2.49/minute. All inter-circle calls of above 50 kms to another
mobile phone have a flat Rs 2.99/minute rate. All local calls, intra-circle
calls and inter-circle calls of less than 200 kms to a fixed phone have a flat
Rs 2.99/minute rate and all inter circle calls of above 200 kms have flat rate
of Rs 3.99/minute.
Other unique features of RIM Prepaid include automatic roaming in pan
India RIM network at no extra cost, nationwide recharge facility with any
denomination, STD and ISD facility, call forward and voice message service
at local mobile call rates from anywhere in RIM network. RIM Prepaid
customers with Java enabled handsets will be able to use their phones as
modems for R Connect Internet connectivity and access R World data
applications. RIM Prepaid customers will also have access to 1234 SMS
based services and a host of call management services like three-way
conference call and caller line identification.
Reliance Infocomm has established a pan-India, high capacity, integrated
(wireless and wireline) and convergent (voice, data and video) digital
network, to offer services spanning the entire Infocomm value chain -
infrastructure, services for enterprises and individuals, applications and
consulting. The Reliance Group, founded by Shri Dhirubhai H. Ambani
(1932-2002), is India's largest business house with total revenues in the
financial year ended March 2003 of Rs 800 billion (US$ 16.8 billion), cash
profit of over Rs 98 billion (US$ 2.1 billion), net profit of over Rs 47 billion
(US$ 990 million), market capitalisation Rs 974 billion (US$21.7 billion)
and exports of Rs 119 billion (US$ 2.5 billion).
A Glance On The Products: -
1) Reliance Infocomm offered an introductory scheme called the
'Dhirubhai Ambani Pioneer' offer. Under this scheme: -
Only calls over and above this were charged extra. Value added services like
voice mail, call waiting, call hold, call divert, call identification, call
conferencing, dynamic locking and text messaging were offered for free.
Internet access through the phones was also offered free initially.
• Customer Generation -
Tapping in to Internal
Resources:
Reliance targeted internally as it looked for the first set of customers.
Officials of Reliance Infocomm realized that an employee base of more than
50,000 and a shareholder base of about 3.3 million was the best place to start
as far as customers were concerned. Every employee was offered 10
connections at a discounted rate. While the normal monthly charges would
be Rs.600 (US$13.3), for the employees they were offered at Rs.500
(US$11.1). Many employees bought Reliance connections for many of their
relatives and friends. During the annual general meeting the Reliance
Chairman offered shareholders a discount package. The company offered an
Rs.850 (US$18.9) discount on initial payments on subscription per
connection. In addition, the shareholders were offered free usage worth
Rs.100 (US$2.2) for six months. This amounted to a total discount of Rs
1,450 (US$32.2) per connection. In addition the shareholders were
encouraged to promote Reliance Infocomm connections in their circles of
influence. If a shareholder subscribed to two connections, he or she would
get free usage worth Rs.100 (US$2.2) per connection for 12 months, in
addition to the Rs.850 (US$18.9) per connection discount.
This amounted to a total discount of Rs.4,100 (US$91.1) for two
connections.
• Advertising – Educating
Masses and Evoking Passions:
Advertising was a marketing strategy, which complemented the
unconventional use of channels by Reliance Infocomm. The Reliance mobile
brand was branded as India Mobile to cash in on patriotic feelings.
Bundling of handsets along with the service – a first time in India – allowed
Reliance Infocomm to resort to a co-branding exercise with the handset
makers. The Reliance Infocomm brand name embossed on every handset
gave it a unique cachet, while the costs of many of the advertisements were
discounted since they were also borne by the handset makers. A mega
advertising campaign was launched across the media to mark the launch.
The blitzkrieg coincided with the world cup cricket tournament, ensuring a
huge audience.
The main theme of the first campaign built on the vision of Reliance
Infocomm in bringing the power of telecommunications to every
person. This campaign helped to educate people on the importance of
telecommunication services.
The next set of campaigns talked about the innovative product
features, which differentiated Reliance Infocomm from its
competitors. The advertisements announced that Re India Mobile was
'Kabhi mobile, kabhi computer' (Sometimes Mobile, Sometimes
Computer).
Overall three observations emerge from the way Reliance handled the
media.
Firstly Reliance built a huge public relations exercise around the
launch of the product. The public relations effort gave much leverage
to the advertising and gave rise to a word of mouth campaign.
Secondly, Reliance Infocomm utilized every media vehicle very
effectively. It advertised on every TV channel available and in most
newspapers, thus making sure that the product was being promoted
across India – a nation very much divided by language and market
conditions.
Thirdly, Reliance Infocomm capitalized on the passions of Indians
when framing advertisements. The campaigns had an emotional pitch,
piggy backing on Cricket and Bollywood thus effectively connecting
with almost every Indian.
• Product Innovations -
Connecting with Every
Section of Society:
Reliance Infocomm leveraged its product innovation skills, applications
development skills and partnerships to find new solutions to conventional
and contemporary problems- from managing queues in temples, and
connecting all police stations, to delivering e-governance solutions to
citizens. Reliance Infocomm applications also facilitated the provision of
education and health services to rural areas at an affordable cost. Reliance
Infocomm attempted to offer something for every section of the society. In a
significant initiative to connect with the huge farmer and trader community
of India, communities that are traditionally left out of telecommunication
strategies, Reliance Infocomm brought the Mandi (market) onto mobile
handsets. To tap into the retailer community Reliance deployed India's first
Wireless Point of Sale (POS) Terminal for processing credit card
transactions in July 2003 in association with HDFC Bank - an important
milestone in the history of retail credit in India. Wireless POS enabled banks
to expand exponentially the number of merchant outlets accepting credit
cards and speed up penetration of credit card services to smaller towns. To
connect with vehicle drivers Reliance introduced the Vehicle Tracking
System. Reliance Vehicle Tracking System provided real time tracking and
monitoring of road consignments and vehicles across India from anywhere,
anytime; consignment location display on Global Information Systems (GIS)
map with assigned route data; routing and location finder capability; real
time text messaging to remote vehicle from application interface; automatic
exception alerts via e-mail; short messaging service (SMS) in case of
geofence violation, speed, delay etc.
CONCLUSION:
Reliance Infocomm stimulated telecommunication growth in India by
challenging many of the conventional practices in product design,
distribution, sales, advertising and pricing. Reliance Infocomm fashioned a
strategy, which was conceptually simple but sweeping in its impact. While
the competitors focused on the top segment of the market, by charging a
premium, Reliance Infocomm sought to reduce the cost to the consumer,
thus focusing on a market driven by volume. While others saw weaknesses
of India as a market – widespread poverty and low levels of
telecommunication penetration – and Reliance as an old economy firm
focusing on oil production and business-to-business clients – Reliance
Infocomm realized that these actually were strengths which it could tap into.
Reliance Infocomm’s managers saw that telecommunications would be
much valued by the poorer sections of society if it could be used to create
opportunities and offered at affordable prices. The company tapped into its
strong political and financial clout to build up a strong organization that
could push it through the legal and regulatory system. Reliance Infocomm is
planning to consolidate its telecommunication revolution through three
phases:
• Firstly, the mobile revolution now reaching 17 million customers will
expand to 640,000 villages and to over 5,000 cities and towns. This
revolution will create the potential for every individual to talk, learn,
shop, bank, transact, entertain and be informed, while on the move.
• Secondly, an enterprise Netway revolution will bring the possibility to
provide broadband experience to every desktop and device in half a
million enterprise buildings initially and eventually to millions of
commercial buildings. This will create the potential to empower every
enterprise by making transactions efficient, functions seamless and
new economic opportunities abundant.
• And thirdly, a convergence revolution will provide high-speed
networks to millions of homes. This revolution will offer every home
access to a wide range of television channels, high-speed telephony,
audio conferencing, videoconferencing and video on demand.
OBJECTIVES:
The report has been made to have a thorough knowledge in the field of
successful running of a business and to learn some managerial, technical and
marketing skills by studying the business strategies followed by one of the
top company’s of India.
RESEARCH METHODOLOGY:
There are number of ways in which you can carry out your research but you
need to carefully consider why you made this choice and what you hope the
evidence will suggest to you.
Questionnaires are one of the most common ways in which you can conduct
market research, and there are many methods of gathering data this way:
Direct Interview, Mail Survey and Telephone interview. Depending on the
type of data you hope to collect will have a impact on what you choose to
use. I have made use of method like questionnaire to with some close
friends. I have asked some question about the company by mail.
I even went to the stores of Reliance Infocomm all of them are located very
nearer to each other in Lajpat nagar market. I even had talks with the
managers of these stores about their market strategies, their sales, customer
feedback. And in these stores in the presence of the manager of the store,
asked some questions to some of the high profile customers . The Question
I have asked are given in “questionnaire part” below.
All the statistical data used in this study have been collected from secondary
sources generally publications of this company, magazines and Internet.
Most of the material has been taken from the company’s own website.
Newspapers / Magazines
FINDINGS BASED ON
QUESTIONNAIRE
1) Do you use mobile phone/ if yes then which one
Series1
50
40
market share
30
20
10
0
reliance airtel hutch tata
35
30
25
market share
20
15
10
5
0
reliance airtel hutch tata
No
30%
Yes
70%
Out of 100 people who were interviewed 70 replied in the
favour of Reliance Infocomm by saying YES and rest 30
people said No.
No, 16%
Ye s, 84%