A

Research Report
ON

A COMPARATIVE ANALYSIS OF CHANNEL STRATEGIES OF

TATA TELESERVICES LTD.

AND

RELIANCE TELESERVICES LTD. FOR THE cdma MOBILE

PHONE SERVICE IN DELHI

UNDER THE GUIDANCE OF: Submitted by:

MS. SONALI SAXENA SURAJ KUMAR
ROLL NO. 0509870230

INSTITUE OF MANAGEMENT STUDIES,

NOIDA

1
 CERTIFICATE

To whom it may concern

This is to certify that Mr. Suraj Kumar, Roll No. 0509870230 of MBA is a Bonafide

regular student of Institute of Management Studies (IMS), NOIDA for the session

2005-07.

He has completed the project report entitled “A COMPARATIVE ANALYSIS OF

CHANNEL STRATEGIES OF TATATELE SERVICES WITH RELIANCE

INFOCOM LTD.” in the organizations as a part fulfillment for the award of MBA

degree under U. P. Technical University, Lucknow.

I find the research report is up to standard and original one.

Mr. J.K. Sharma

Executive Director

2
 CERTIFICATE

To whom it may concern

This is to certify that Mr. Suraj Kumar, Roll No. 0509870230 of MBA is a Bonafide

regular student of Institute of Management Studies (IMS), NOIDA for the session

2005-07.

He has completed the project report entitled “A COMPARATIVE ANALYSIS OF

CHANNEL STRATEGIES OF TATATELE SERVICES WITH RELIANCE

INFOCOM LTD” in the organizations as a part fulfillment for the award of MBA

degree under U. P. Technical University, Lucknow.

I find the research report is up to standard and original one.

Ms. Sonali Saxena

Project Supervisor

3
 CONTENTS

 Executive Summary 1

 Theoretical Concepts 6

 Introduction/ Statement of Problem 30

 Scope of the Study & Importance of the Study 33

 Objective of the Study 36

 Research methodology 38

 Introduction of the Organization 54

 Data Presentation & Analysis 65

 Findings of the Study 78

 Recommendations 83

 Bibliography 87

 Appendix 89

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 ACKNOWLEDGEMENT

I take this opportunity to thank everybody associated directly or indirectly in

helping me out to complete this project.

A special thanks to Mr. Ali Haider, (MBA Co-ordinator) who allowed and

supported me from time to time me to carry on the work on this project.

I would like to thanks Ms. Sonali Saxena, my Project Supervisor for her valuable

and treasured suggestion.

SURAJ KUMAR
MBA-IV SEM.
0509870230

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 STUDENT DECELERATION

I here by declared that this research project entitled “A Comparative Analysis of

Channel Strategies of Tata Tele Services Ltd. And Reliance Infocomm Ltd. For

their CDMA mobile services in Delhi. (A case study of Tata Tele Services Ltd.)

Submitting for partial fulfillment of the requirements of the degree of M.B.A. for U.P.

Technical University, Lucknow is of my original work. This report is only for education

purpose and nor or any other purpose.

SURAJ KUMAR
MBA-IV SEM.
0509870230

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EXECUTIVE SUMMARY

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 EXECUTIVE SUMMARY

The objective of this report is to make a comparative analysis of Channel Strategies of

Tata Tele Services And Reliance Infocomm Ltd. for their CDMA Mobile Phone services

in Delhi and to suggest improvements and modifications wherever required.

The methodology employed was to collect the required information using Descriptive

Research Design with tools like questionnaire and personal interviews.

The primary data information source include Company personnel, Channel Partners like

Franchisees, Distributors, Dealers and most importantly the Customers, of the both the

companies.

The secondary source of information were business Magazines, Newspaper, Internet and

Company News Journals.

Channel Strategies

Like Selection Criterion, Structure of Distribution, Number of Channel Partners in Delhi,

Advertising and other support from the companies, Incentives and Commission Structure,

Motivation to Channel Partners, Training and Development, Channel Evaluation and

Channel Conflict have been studied and result complied therein.

Customer/Prospects visiting Channel Partners outlets’ were also Interviewed and

results tabulated.

Both the companies look for good financial backing and Office Space at a prime location

having easy accessibility are the main criterion of selection besides having independent

teams for Sales and Customer are activities. Both companies have a good market

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penetration with more than 1400 outlets for RIL in DELHIand over 700 for TTSL in

Delhi.

Channel evaluation is done both quantitative and qualitative basis regularly on monthly

basis for both RIL and TTSL.

Customer perception of the companies revealed that they were more delighted to visit a

Reliance Web World because of presence of Broadband section and the Java Green

section (Food & Beverage) outlet than visiting a Franchisee of Tata Tele Services Ltd.

Which does not offer these services as of now.

However much lesser number of customer faced billing problems in case of TTSL than

RIL the company should have more of direct interaction with its customers to minimize

billing problems of its customers.

Channel of Conflict as of now is not a major concern for TTSL but if the same is not

resolved properly might aggravate and lead to major problems between the company and

the Channel partners.

Both in RIL and TTSL should give more of training on their Tariff structure, billing plans

and Product training to the frontline staff of their franchisees that interact with the

customers.

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THEORETICAL CONCEPT

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THEORETICAL CONCEPT

IDENTIFYING THE MAJOR CHANNEL ALTERNATIVES

Once a company has defined its target market and desired positioning, it should identify

its channel alternatives. A channel alternative is described by three elements: the types of

business intermediaries, the number of intermediaries, and the terms and responsibilities

of each channel participant.

NUMBER OF INTERMEDIARIES

Companies have to decide on the number of middlemen to use at each channel level.

Three strategies are available.

INTENSIVE DISTRIBUTION

Producers of convenience goods and common raw materials typically seek intensive

distribution-that is, stocking their product in numerous outlets. These goods must have

place utility.

SELECTIVE DISTRIBUTION

Between intensive and exclusive distribution stands selective distribution the use of more

than one but less than all of the intermediaries who are willing to carry a particular

product. It is used both by established companies and by new companies seeking to

obtain distributors by promising them selective distribution. The company does not have

to dissipate its efforts over many outlet, including many marginal ones. It can develop a

good working relation with the selected middlemen and expect a better than a average

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selling efforts. Selective distribution enables the producer to gain adequate market

coverage with more control and less cost than intensive distribution.

EXCLUSIVE DISTRIBUTION

Some producers limit the number of intermediaries handing their products. The extreme

form is exclusive distribution, where only certain dealers can distribute the company’s

products. It often goes with exclusive dealing, where these dealers must not new

automobiles some major appliances, and some women’s apparel brands. Through

granting exclusive distribution, the manufacturer hopes to obtain more aggressive and

knowledgeable selling and more control over intermediaries’ policies on prices,

promotion, credit, and various services. Exclusive distribution tends to enhance the

product’s image and allow higher markups.

TERMS AND RESPONSIBILITIES OF CHANNEL MEMBERS

The producer must determine the conditions and responsibilities of the participating

channel members. The main elements in the “Trade-Relations mix” are price policies,

conditions of sale, territorial rights, and specific services to be performed by each party.

Price policy calls for the producer to establish a price list and schedule of discount. The

middlemen must see these as equitable and sufficient.

Conditions of sale refer to payment terms and producer guarantees. Most producers grant

cash discounts to their distributors for early payment. Producers might also guarantee

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distributors against defective merchandise of price declines. A guarantee against price

declines includes distribution to buy larger quantities.

Distributor’s territorial rights are another elements in the trade-relations mix. Distributors

want to know where the producer will enfranchise other distributors. They would also

like to receive full credit for all sales taking places in their territory, whether or not they

did the selling.

Mutual services and responsibilities must be carefully spelled out, especially in

franchised and exclusive agency channels. For example, Mc Donald’s provides

franchisees with a building, promotional support, a record-keeping system, training, and

general administrative and technical assistance. In turn, franchisees are expected to

satisfy company standards regarding physical facilities, cooperate.

With new promotional programs furnish, requested information, any buy specified food

products.

EVALUATING THE MAJOR CHANNEL ALTERNATIVES:

Each channel alternative needs to be evaluated against economic, control, and adaptive

criteria.

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ECONOMIC CRITERIA

Each channel alternative will produce a different level of sale and costs. The first

question is whether more sales will be produced through a company sales-force or

through a sales agency. Most marketing managers believe that a company sales-force will

sell more. Company sales representatives concentrate entirely on the company’s

products; they are better trained and more aggressive, because their future depends on the

company’s success; they are more successful, because many customers prefer to deal

directly with the company.

On the other hand, the sales agency could conceivably sell more than a company sales-

force. First, the sales agent has thirty sales representatives, not just ten. Second, the

agency’s sales-force might be just as aggressive as offer. Third, some customers prefer

dealing with agents who represent several manufacturers rather than with salespersons

from one company. Fourth, the agency has extensive contacts, whereas a company sales-

force would have to build them from scratch.

The next step is to estimate the costs of selling different volumes through each channel.

The fixed costs of engaging a sales agency are lower than those of establishing a

company sales office. But costs rise faster through a sales agency, because sales agents

get a larger commission than company salespeople.

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CONTROL CRITERIA :

Channel evaluation must be broadened to include control issues. Using a sales agency

poses a control problem. A sales agency is an independent business firm seeking to

maximize its profits. The agents may concentrate on the customers who buy the most, not

necessarily of the manufacture’s goods. Furthermore, the agents might not master the

technical details of the company’s products or handle its promotion materials effectively.

ADAPTIVE CRITERIA :

Each channel involves some duration of commitment and loss of flexibility a

manufacturer seeking a sales agency might have to offer a five-year contract. During this

period, other means of selling, such as direct mail, might become more effective, but the

manufacturer is not free to drop the sales agency. A channel requiring a long commitment

needs to be greatly superior on economic or control grounds to be considered.

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CHANNEL MANAGEMENT DECISION :

After a company has chosen a channel alternative, individual middlemen must be

selected, motivated, and evaluated. Also, channel arrangements must be modified over

time.

SELECTING CHANNEL MEMBERS:

Producers very in their ability to attract qualified middlemen within the chosen channel.

Some producers have no trouble recruiting middlemen. In some cases, the promise of

exclusive or selective distribution will draw a sufficient number of applicants.

At the other extreme are producers who have to work hard to get qualified middlemen.

Whether producers find it easy or difficult to recruit middlemen, they should at least

determine what characterizes distinguish the better middlemen. They will want to

evaluate the middlemen’s number of years in business, the other lines carried, growth and

profit record, solvency, cooperativeness, and reputation. If the middlemen are sales

agents, producers will want to evaluate the number and character or other lines carried

and the size and quality of the sales-force. If the middlemen are department stores that

want exclusive distribution, the producer will want to evaluate the stores’ locations future

growth potential, and type of clientele.

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GENERAL CRITERION FOR SELECTION OF CHANNEL PARTNERS

FINANCIAL STRENGTH

The first and foremost criterion is judging the financial strength. Any company would be

interested in strong financial backgrounds of it’s channel partner since that would enable

the partner to invest money wherever required. The revenue and profits earned would be

able to reflect this.

SALES STRENGTH

The number of Sales Executive working for the channel partner and the technical

competence of the sales team and the ability to penetrate accounts further the

performance of channel partner in related lines as well as growth prospects are taken into

consideration. Success in reaching target markets/ individuals and also the after sales

follow up is another criterion.

Product Lines Competitive products, Compatible products and Complementary products

being sold by the channel partner.

MARKET REPUTATION

Of the channel partner, the leadership he commands in the market and whether the

channel partner is well established and has any community standing also or not. Back

ground of key Executives and level of expertise shown by the partner.

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MARKET COVERAGE

i.e. the geographic coverage and the Industry coverage also provides insights onto the

performance of the channel partner. Intensity of coverage viz a viz the calls made by the

sales teams.

Managing Strength

Proper planning of business and employee relations and marketing orientations. Strategic

direction.Advertising and sales programs Training programs whether self administred

allow suppliers to participate.

Sales Compensation Programs Plant Equipment and Facilities Transportation/delivery

methods and records and Inventory Management and Warehousing. Ordering And

Payment Producers To be simple in understand and implementing. Installation and repair

services Which covers the warranty and after-sales service.

Quality of demonstrator programs Willingness to commit resources To individuals

lines/brands Willingness to co-operate In joint programs Willingness to share data Of

customers, sales force, inventory and delivery Willingness to accept quota By the

Channel Partner .

Motivating Channel Members Middlemen must be continuously motivated to do their

best job. The terms that lead them to join the channel provide some motivation, but these

must be supplemented by training supervision and encouragement. The producer must

not only sell through the middlemen but to them.

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Stimulating channel members to top performance must start with understanding of the

middlemen’s needs and wants, Mc Vey listed the following propositions to help

understand middlemen.

The middlemen often acts as a purchasing agent for his customer s and only secondarily

as a selling agent for his suppliers……… He is interested in selling any product which

these customers desire to by from him.

The middlemen attempts to weld all of his offerings into a family of items which he can

sell in combination, as packaged assortment, to individual customers. His selling efforts

are directed primarily at obtaining order for the assortment, rather than for individual

items.

Under given incentive to do so, middlemen will not maintain separate sales records by

brands sold information that could be used in product development, pricing, packaging,

or promotion planning is buried in nonstandard records of middlemen, and sometimes

purposely secreted from suppliers.

Producers very greatly in how they mange their distributors, essentially, the can draw on

different types of power to gain cooperation. They can aim for achieving a relationship

based on cooperation, partnership, or distribution programming.

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MARKETING CONCEPTS AND TOOLS

Five based of power for managing channel relationships

Manufacturers need to draw on some source of power to gain middlemen cooperation .

Power is the ability of one channel member to get another channel member to do

something that might not be done otherwise. French and Raven distinguished among five

based of power; coercive, reward, legitimate, expert, and referent.

COERCIVE POWER

Would be represented by the manufacturer’s threatening to withdraw some resource or

terminate the relationship if the middlemen fail to cooperate. This power is quite effective

if the middlemen are highly dependent upon the manufacturer. But the exercise of

coercive power produced resentment and can lead the middlemen to organize

countervailing power. While coercive power may be effective in the short run, it is

usually the lest effective type of power to use in the long run.

REWARD POWER

Would occur if the manufacture offers some extra benefit for the performance of specific

acts by middlemen. Reward power typically produces better results than coercive power.

The middlemen are conforming to the manufacturer’s wishes not out of intrinsic

conviction but because of an external benefit. They will grow to expect a reward very

time the manufacturer’s wants a certain behavior to occur. It the reward is later

withdrawn, the middlemen feel cheated.

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LEGITIMATE POWER

Is wielded when the manufacturer requests a behavior as warranted by the hierarchical

relationship and contract. Thus General Motors may insists that its dealers carry certain

inventory levels as part of the franchise agreement. The manufacturer feels it has this

right and the middlemen has this obligation. As long as the middlemen view the

manufacturer as a legitimate leader, legitimate power works.

The manufacturer, who has special knowledge that is valued by the middlemen, can

apply expert power.

For example, a manufacturer may have a sophisticated system from locating leas for

middlemen or giving expert training to the middlemen’s sales-forces. This is an effective

form of power, since the middlemen would perform poorly if they couldn’t get this help

from the manufacturer must continue to develop new expertise so that the middlemen

will be eager to continue cooperating with the manufacturer.

REFERENT POWER

Occurs when the manufacturer is so highly respected that middlemen are proud to be

identified with him. Companies such as IBM, Caterpillar, Mc Donald’s and Neiman-

Marcus have high referent power, and middlemen are and normally ready to go along

with their wished.

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To the extent possible, manufacturer will gain cooperation best if they cultivate referent

power, expert power, legitimate power, and reward power, in that order, and generally

avoid the use of coercive power.

Most producers see the problem as that of gaining middlemen cooperation. They will use

the carrot-and-stick approach. They will use positive motivators, such as higher margins,

special deals, premiums, cooperative advertising allowances, display allowances, and

sales contests. At times they will apply negative sanctions, such as threatening to reduce

the margins, slow down delivery, or terminate the relationship. The weakness of this

approach is that the producer has not really studied the middlemen’s needs, problems,

strengths, and weaknesses. Instead, the producer applies miscellaneous motivators based

on crude stimulus-response thinking. Mc Common notes that many manufacturer

programs “Consists of hastily improvised trade deals, uninspired dealer contests, and

unexamined discount structures.”

More sophisticated companies try to forge a ling-term partnership with their distributors.

The manufacturer develops a clear sense of what is wants from its distributors in the way

of market coverage, inventory levels, marketing development information. The

manufacturer seeks distributor agreement with these policies and may introduce a

functional compensation plan for adhering to eth policies.

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Distribution programming is the most advanced arrangement. Mc Cammon defines this

as building a planned, professionally managed, vertical marketing system that

incorporates the needs of both the manufacturer and the distributors. The manufacturer

establishes a department within the company called distributor-relations planning, and its

job is to identify the distributors’ needs and build up merchandising programs to help

each distributor operate as optimally as possible. This department and the distributors

jointly plan the merchandising goals, inventory levels, space and visual merchandising

plans, sales-training requirements and advertising and promotion plans. The aim to

convert the distributors from thinking that they make their money primarily on the buying

side (through tough negotiation with the manufacturer) of seeing that they make their

money on the selling side by being part of a sophisticated vertical marketing system.

Too many manufacturer think of their distributors and dealers as their customers rather

than their working partners.

EVALUATING CHANNEL MEMBERS

The producer must periodically evaluate middlemen’s performance against such

standards as sales-quota attainment, average inventory levels, customer delivery time,

treatment of damaged and lost goods, cooperation in promotional and training programs

and middlemen services owed to the customer.

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Channel Evaluation is done both Quantitatively and quantitatively Producers must

periodically review whether they are overcompensating certain middlemen or channels

for the actual services they are rendering.

Under performing middlemen need to be counseled. They may need more training or

motivation. If they do not shape up, however, it might be better to terminate their service.

MODIFYING CHANNEL ARRANGEMENTS

A producer must do more than design a good channel system and set it into motion. The

system will require periodic modification to meet new conditions in the marketplace.

Modification becomes necessary when consumer buying patterns change, market

expands, products matures, new competition arises, and new, innovative distribution

channels emerge.

Three levels of channel modification can be distinguished. The change could involve

adding or dropping individual channel members, adding or dropping particular market

channels, or developing a totally new way to sell goods in all markets.

Adding or dropping specific middlemen requires an incremental analysis. Wheat would

the firm’s profits look like with and without this middlemen/ manufacturer decision to

drop a dealer would require subtracting the dealer’s sales and estimating the possible loss

or gain of sales to the manufacturer’s other dealers.

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Sometimes a producer contemplates dropping all middlemen whose sales are below a

certain amount. It cost the company more to service these dealers than their sales were

worth. However, the decision to drop these dealers could have large repercussions on the

system as a whole.

The most difficult decision involves revising the overall channel strategy. These

decisions would require revising most of the marketing mix and would have profound

consequences.

Channel Dynamics

Distribution channels do not stand still. Now wholesaling and retailing institutions

emerge, and new channel system evolve.

GROWTH OF VERTICAL MARKETING SYSTEMS

One of the most significant recent channel developments consists of vertical marketing

systems which have emerged to challenge conventional marketing channels. A

conventional marketing channel comprises an independent producer, wholesaler (s), and

retailers a (s). each is a separate business entity seeking to maximize its own profits, even

if it reduces for the system as a whole. No channel member has complete or substantial

control over the other members. Mc Cammon characterizes conventional channels as

“highly fragmented networks in which loosely aligned manufacturers, wholesalers, and

retailers have bargained with each other at arm’s length, negotiated aggressively over

terms of sale, and otherwise behaved autonomously”.

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A vertical marketing system (VMS), by contrast, comprises the producer, wholesaler (s),

and Retailers (s) action as a unified system. Any one channel member owns the others or

franchises them or has so much power that they all cooperate. The vertical marketing

system can be dominated by the producer, the wholesaler, or the retailer. Mc Cammon

characterizes VMSs and “professionally managed and centrally programmed networks

pre-engineered to achieve operating economics and maximum market impact. VMSs

came into being to control channel behavior and eliminate the conflict that results when

independent channel members pursue their own objectives. They achieve economics

through their size, bargaining power, and elimination of duplicated services.

GROWTH OF HORIZONTAL MARKETING SYSTEMS

Another channel development is the readiness of two or more non related companies to

put together resources or programs to exploit an emerging marketing opportunity. Each

company lacks the capital, know-how, production, or marketing resources to venture

alone; or it is afraid of the risk; or it sees a substantial synergy in joining with another

company. The companies might work with each other on a temporary or permanent basis

or create a separate company. Adler calls this symbiotic marketing.

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GROWTH OF MULTI –CHANNEL MARKETING SYSTEMS

In the past, many companies sold to a single market through a single channel. Today,

with the propitiation of customer segments and channel possibilities, more and more

companies have adopted multi-channel marketing. Multi-channel marketing occurs when

a single firm uses two or more marketing channels to reach one or more customer

segments.

The good news is that the multi-channel marketer gains volume with each new channel.

The bad news is the different channels my compete and crate.

Disruptive channel conflict. Some channels may refuse to work with the manufacturer if

the latter does not limit the channel competition or recompense them in some way.

Multi-channel marketing shows less conflict when the same manufacturer owns all the

multiple channels.

CHANNEL COOPERATION, CONFLICT, AND COMPETITION

No matter how well channels are designed and managed, there will be some conflict, if

for no other reason than the interests of independent business entities don’t always

coincide.

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TYPES OF CONFLICT AND COMPETITION

Suppose a manufacturer sets up a vertical channel consisting of wholesalers and retailers.

The manufacturer hopes for channel cooperation in that cooperation normally produces

greater total channel profits than if each channel member acted only on self-interest. By

cooperating, the channel members can more effectively sense, serve, and satisfy the

target market.

Yet vertical, horizontal and multi-channel conflict can occur. Vertical channel conflict

exists when there is conflict between different levels within the same channel.

Horizontal channel conflict exists when there is conflict between members at the same

channel level within the channel.

Multi-channel conflict exists when the manufacturer has established two or more

channels that compete with each other in selling to the same market. Multi-channel

conflict is likely to be especially intense when the members of one channel either get a

lower price (based on larger volume purchases) or are willing to work with lower

margins.

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CAUSES OF CHANNEL CONFLICT

DIFFERENT CAUSES THAT MIGHT PRODUCE CHANNEL CONFLICT.

A major cause is goal incompatibility. For example, the manufacturer may want to

achieve rapid market growth through a low-pricing policy. The dealers, on the other

hand, may prefer to work with high margins and pursue short-run profitability).

Sometimes the conflict arises from unclear roles and rights. The conflict can also stem

from differences in perception. The manufacturer may be optimistic about the near-term

economic outlook and want dealers to stock up on inventory. But the dealers may be

pessimistic about the near-terms outlook.

The conflict might arise because of the great dependence of the middlemen on the

manufacturer. Exclusive dealers, such as auto dealers, have their fortunes intimately

affected by the product design and pricing decision of the manufacturer.

MANAGING CHANNEL CONFLICT

Some amount of channel conflict can be constructive. It can lead to more dynamic

adaptation to changing environment. At the same time, too much conflict is

dysfunctional. The problem is not one of eliminating conflict but of managing if better.

There are several mechanisms for effective conflict management.

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The most important solution is the adoption of super-ordinate goals. The channel

members somehow come to an agreement on the fundamental goals they are jointly

seeking, whether it is survival, market share, high quality, or customer satisfaction. This

often takes place when the channel faces an outside threat, such as a more efficient

competing channel, an adverse piece of legislation, or a shift in consumer desires.

Working closely together might eliminate the threat.

There is also chance that the intense cooperation might have taught the parties a

permanent lesson on the value of working toward the same end.

A usual conflict management device is the exchange of person between two or more

channel levels. Each side will grow to appreciate the other side’s point of view and carry

more understanding when returning to their position.

Co-optation is an effort by one organization to win the support of the leaders of another

organization by including them in advisory councils, boards of directors, and the like, so

that they feel that their opinions are being heard. As long as the initiating organization

treats the leaders of the other organization seriously, cooptation can work to reduce

conflict. But the initiating organization also pays a price in that it may have to

compromise its policies and plans if it is to win the support of the other side.

Joint membership in and between trade associations. When conflict is chronic or acute,

the parties may have to resort to diplomacy, mediation, or arbitration.

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Diplomacy takes place when each side sends a person or group to meet with their

counterpart from the other wise to resolve the conflict. It makes sense to assign diplomats

to work more or less continuously with each other to avoid the flaring up of conflicts.

Mediation means resorting to a neutral third party who brings skills in conciliating the

interests of the two parties. Arbitration occurs when the two parties to present their

arguments to a third party (one or more arbitrators) and accept the arbitration decision.

Given the potential for channel conflict in all channel arrangements, channel members

would be wise to develop in advance agreed upon method of resolving channel conflict.

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SUMMARY :

Marketing-channel decision are among the most complex and challenging decision facing

the firm. Each channel system creates a different level of sales and costs. Once a firm

chooses a marketing channel, it must usually remain with it for a substantial period. The

chosen channel with significantly affect and be affected by the other elements in the

marketing mix.

Middlemen are used when they are able to perform channel functions more efficiently

than the manufacturer can. The most, important channel functions and flows are

information, promotion, negotiation, ordering financing, risk taking, physical possession,

payment, and title. These marketing functions are more basic than the particular retail and

wholesale institutions that may exist at any time.

Manufacturer face many channel alternatives for reaching a market. They can sell direct

or use one, two, three or more intermediary-channel levels. Channel design calls for

determining the service outputs (lot size, waiting time, spatial convenience, product

variety, service backup), establishing the channel objectives and constraints, identifying

the major channel alternatives (types and number of intermediaries, specifically intensive,

exclusive, or selective distribution), and the channel terms and responsibilities. Each

channel alternative has to be evaluated according to economic, control, and adaptive

criteria.

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Channel management calls for selecting particular middlemen and motivating them with

a cost-effective trade-relations mix. The aim is to build a “partnership” feeling and joint-

distribution programming. Individual channel members must be periodically evaluated

against their own past sales and other channel members’ sales. Channel modification

must be performed periodically because of the continuously changing marketing

environment.

To company has to evaluate adding or dropping individual middlemen or individual

channels and possible modifying the whole channel system.

Marketing channels are characterized by continuous and sometimes dramatic change.

Three of the most significant trends are the growth of vertical, horizontal and multi-

channel marketing system.

All channel systems have a potential for vertical, horizontal and multi-channel conflict

stemming from such sources as goal incompatibility, unclear roles and rights, differences

in perception, and high dependence. Managing these conflicts can be sought through

super-ordinate goals, exchange of persons, cooptation, joint membership in trade

associations, diplomacy, mediation, and arbitration.

33
INTRODUCTION OF THE

PROBLEM

34
 INTRODUCTION / STATEMENT OF THE PROBLEM

I have completed my summer training from Tata Teleservices Ltd. at the topic

“Comparative Analysis of Channel Strategies of Tata Teleservices Ltd. & Reliance

Infocom Ltd. in Delhi

Special features :

Design to provide simple and complete insight about training which provide a firm

ground to understand about company, research and the activities perform drug training.

This report has following features.

1. Comprehensive coverage

2. Diagnostic focus and analytical approach

Comprehensive coverage :

It covers a wide spectrum of coverage on Tata Teleservices Ltd., Delhi.

Diagnostic focus and analytical approach:

Findings are based on analysis, backed by arithmetic calculation. Calculation is drawn in

light of qualitative aspects with art of logic and reasoning.

I face certain problems while completion of my project work which affected my report to

a extent but even then I made my full effort to prepare and present effective report.

35
Problems are :

1. The company limits projects area.

2. As retailers prefer the mid day for interaction, this problems he interaction

timings and number of retailers interacted.

3. High cost of traveling and mobility reduces the coverage area.

4. Prickly heat season affected my working capacity, and restricted me to cover

distant area entirely.

5. Few retailers did not exhibit any interest to fulfill the questionnaires and

interviews.

6. It was not simply a questionnaires rather it also involves direct

communication with the retailers as interviewing them, which was tedious as

well as time consuming.

36
SCOPE & IMPORTANCE

OF

THE STUDY

37
SCOPE OF THE STUDY

The project aims to get the student out of the classroom and into the real world of

companies/ competitors, markets, managers and customers. The project aims to get the

student out of the passive mode of heavy lectures, hearing about other people last

experience and into the active mode of theories for themselves in solving real problems in

real and live companies. Describing the scope of particular project has different

dimensions as it reveals different crisis situation and its solution; it is both way beneficial

for researcher and for the manufacturer, service provider or the company.

Doing a good research involves collecting data from the genuine resource with proper

implication that leads to the company for future orientation. Experience is a child of

Thought and the Thought is a child of Action. An experience is a name every one gives to

their mistakes. For a researcher, it opens the way for walking into experiences. The

ultimate goal of a research is enormous with its true sense. Physically and practically, it

shows the potential for the company and researcher.

38
Importance

The study of the comparative analysis of Tata Teleservices with its competitors has

following importance :

• It provides the better information about the market share of Tata Teleservices .

It provides the information about the problems of retailers who sell Services.

• It provides the information about the strategy which followed by the competitors to

increase their demand.

• It provides the information about the deficiencies in distribution channel.

39
OBJECTIVE OF

THE STUDY

40
OBJECTIVE

 The objective of this report is to make a Comparative Analysis of Channel

Strategies of Tata Teleservices Ltd. And Reliance Infocomm Ltd. For their

CDMA Mobile Phone service in Delhi.

 To further suggest improvements and modification wherever required.

 To find out how the customer of each company perceive the company as a whole.

41
 RESEARCH

METHODOLOGY

42
 RESEARCH

Research in common parlance refers to a search for knowledge. One can also define

research as a scientific and systematic search for pertinent information on a specific topic.

In fact research is an art of scientific investigation. The advance learner’s dictionary of

current English lays down the meaning of research as “a careful investigation or inquiry

especially through search for new facts in any branch of knowledge.

OBJECTIVE OF RESEARCH---

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden or

which has not been discovered as yet.

The main objectives of research are as follows

 To gain familiarity with the phenomenon or to achieve new insight in to it.

 To portray accurately the characteristic of a particular individual, situation or a

group.

 To determine the frequency with which something occurs or with which it is

associated with something else.

 To test a hypothesis of a casual relationship between variables.

43
RESEARCH PROCESS—

Research process consists of series of actions or steps necessary to effectively carry out

research and desired sequencing of these steps. And the process of research can be

defined by following steps-

 Formulating the research problem

 Extensive literature survey

 Development of working hypothesis

 Preparing the research design

 Determining sample design

 Collection of data

 Execution of project

 Analysis of data

 Testing of hypothesis

 Interpretation

 Preparation of report

1. Formulating the research problem---

Research problem can be formulated on the basis of nature and variables. Initially the

problem may be stated in a broad way and than the ambiguities, if any, relating to the

problem be resolved. Then the feasibility of a particular solution has to be considered

before a working formulation of the problem can be setup. Essentially two steps are

44
 involved in formulating the research problem, viz, understanding the problem

thoroughly, and rephrasing the same in to maniple terms from an analytical point of

view.

The best way of understanding of problem is to discus it with once on colleagues

or with those having some expertise in matters. In the academic institution the researcher

can seek the help from a guide who is usually an experienced man and has several

research problems in mind. In private business units or in governmental organization, the

problem is usually earmarked by the administrative agencies.

2. Extensive literature survey----

Once the problem is formulated, it becomes compulsory for a research worker

writing a thesis for a Ph.D. degree to write a synopsis of the topic and submit it to the

necessary committee of the research board for approval. The researcher should undertake

extensive literature survey connected with the problem. For this journals and published

bibliographies are the fist place to go to. A good library will be a great help to the

researcher at this stage.

3. Development of working hypothesis—

After literature survey researcher should state in clear terms the working hypothesis

or hypothesis. As such the manner in which research hypothesis are developed is

particularly important since they provide the focal point for research. The development of

working hypothesis plays an important role; it should be very specific and limited to the

45
piece of research in hand because it has to be tested. It also indicates the type of data

required and the type of methods of data analysis to be used.

How does one go about developing working hypothesis? The answer is by using the

following approaches.

I. Discussion with colleagues and experts about the problem, its origin and objectives

in seeking a solution.

II. Examination of data and records, if available, concerning the problem for possible

trends, particularities and other clues.

III. Exploratory personal investigation which involves original field interview on a

limited scale with interested parties and individuals with a view to secure greater

insight in to the practical aspects of the problem.

4. Preparing the research design—

The research problem having been formulated in clear cut terms, the researcher will

be required to prepare a research design. The preparations of such a design facilitate

to be as efficient as possible yielding maximal information. The purpose of research

may be grouped in to four categories.

I. Exploration

II. Description

III. Diagnosis

IV. Experimentation

The preparation of research design, appropriate for a particular research problem,

involves usually the consideration of the following

I. The means of obtaining the information.

46
 II. The availability and skills of the researcher and his staff.

III. Explanation of the way in which selected means of obtaining information will be

organized and the reasoning leading to the selection.

IV. The time available for the research.

V. The cost factor relating to research, i.e. the finance available for the purpose.

5. Determining sample design—

For determination of sample design ,it can be presumed that in such an enquiry when

all the items are covered no element of chance is left and highest accuracy is obtained

even the slightest element of bias in such an enquiry will get larger and larger as the

number of observation increases. Hence, quite often be selecting only a few items from

the universe for our study purpose. The items so selected constitute what is technically

called a sample.

The researchers must decide the way of selecting a sample or what is popularly

known as the sample design .a sample design is a definite plan determined before any

data are actually collected for obtaining a sample from a given population. Sample can be

either probability sample or non probability sample. Probability sample are those based

on simple random sampling , systematic sampling, cluster sampling where as non

probability sampling are those based on convenience sampling, judgment sampling and

quota sampling technique. A brief mention of the important sample designs is as follows:

47
 I. Deliberate sampling---

Deliberate sampling is also known as purposive or non-probability sampling.

This sampling method involves purposive or deliberate selection of particular units of the

universe for constituting a sample which represents the universe. When population or

elements are selected for inclusion in the sample based on the ease of access, it can be

called convenience sampling. If a researcher whishes to ensure data from, say, Gasoline,

buyers, he may select a fixed number of petrol stations and may conduct interview at

these stations. This would be an example of convenience sample of Gasoline buyers. On

the other hand, in judgment sampling the researcher’s judgment is used for selecting

items which he considers as representative of the population.

II. Simple random sampling—

This type of sampling is also known as chance sampling or probability sampling

where each and every item in the population has an equal chance of inclusion in the

sample and each one of the possible samples. For example, if we have to select sample of

300 items from a universe of 15000 items, than we can put the names or numbers of all

the 15000 items on slips of paper and conduct a lottery.

III. Systematic sampling—

In some instances the most practical way of sampling is to select every 15 th name

on a list, every ten hose on one side of street and so on. Sampling of this type is known as

systematic sampling. In such a design the selection process starts by picking some

48
random point in the list and then every nth element is selected until the desired number is

secured.

IV. Stratified sampling—

If the population from which a sample is to be drown does not constitute a

homogeneous group, then stratified sampling is applied. If the item selected from

each stratum is based on simple random sampling the entire procedure, first

stratification and then simple random sampling, is known as stratified random

sampling

V. Quota sampling—

In stratified sampling the cost of taking random sample from individual strata is

often so expansive that interviewers or simply given quota to filled from different strata.

Quota samples generally happen to be judgment samples rather than random samples.

VI. Cluster sampling and area sampling—

Cluster sampling involves grouping the population and then selecting the groups or

the clusters rather than individual elements for inclusion in the sample, suppose some

departmental stores wishes to sample its credit card holders. It has a suit its cards to

15000 customers. The sample size is to be kept say 450. For cluster sampling this list

of 15000 holders could be formed in to 100 clusters of 150 card holders each.

VII. Multistage sampling—

49
 This is further development of idea of cluster sampling. Under multi stage

sampling the first stage may be to select large primary sampling units such as states, then

districts, then towns and finally certain families within towns.

VIII. Sequential sampling—

This is some what a complex sample design where the ultimate size of the sample is not

fixed in advance but is determined according to mathematical decisions on the basis of

information yielded as survey progress. This design is usually adopted under acceptance

sampling plan in the context of statistical quality control.

6) Collecting of the data—

Once the sample design is decided then it becomes necessary to collect data that are

appropriate. There are several ways of collecting the appropriate data which is differ

considerably in context of money cost, time and other resources at the disposal of the

researcher.

Primary data can be collected either through experiment or survey. If the

researcher conducts and experiments, he observes some qualitative measurements, or the

data, with the help of which he examines the truth contain in the hypothesis. But in the

case of survey, data can be collected by anyone or more of the following ways.

50
 By observation: - this method implies the collection of information by way of

investigators own observation, relates to what is currently happening and is not

complicated by either the past behavior or future intentions or attitudes of respondents.

Through personal interview: - This method of collecting data is usually carried

out in a structured way where output depends upon the ability of the interviewers to a

large extent.

Through telephone interviews: - This method of collecting information involves

contacting the respondent on telephone itself, when the survey has to be accomplished in

a very limited time.

By mailing of questionnaires: - Questionnaires are mailed to the respondents with

a request to return after completing the same. It is the most extensively used method in

various economic and business surveys. Before applying the method, usually a pilot study

for testing the questionnaires is conducted wh9ich reveals the weaknesses, if any, of the

questionnaires.

Through Schedules: - Under this method the enumerators are appointed and given

training. These enumerators go to respondents with these schedules. Data are collected by

filling up the schedules by enumerators on the basis of replies given by respondents.

Some occasional field checks on the work of the enumerators may ensure social work.

51
 7. Execution of the project:-

Execution of the project is a very important step in the research process. If the

execution of the project proceeds on correct line, the data to be collected would be

adequate and dependable. The researcher should see that the project executed in a

systematic manner and in time. If the survey is to be conducted by means of

structured questionnaires, data can be readily machine-processed. In such a situation,

questions as well as possible answers may be coded. The training may be given with

the help of instruction manuals which explain clearly the job of the interviewers at

each step. A careful watch should be kept for unanticipated factors in order to keep

the survey as much realistic as possible.

If some of the respondents do not co-operate, some suitable method should be

design to tackle this problem. One method of dealing with a non response problem is to

make a list of the non respondents and take a small sub sample of them, and then with the

help of experts vigorous efforts can be made for securing response.

8. Analysis of data:-

After the data has been collected, the researcher turns to the task of analyzing

them. The analysis of data requires a no. of closely related operation such as

establishment of categories, the application of these categories of raw data through

coding, tabulation and then drawing statistical inferences. Thus, researcher should

classify the raw data in to some purposeful and usable categories.

Coding operation is usually done at this stage through which the categories of

data are transformed in to symbols that may be tabulated and counted.

52
 Editing is the procedure that improves the quality of the data for coding. Whit

coding the stage is ready for tabulation.

Tabulation is a part of the technical procedure where in the classified data are put

in the form of tables.

Analysis work after tabulation is generally based on the computation of various

percentage coefficients etc. by applying various well defined statistical formulae. In

the process of analysis, relationship of differences supporting or conflicting with

original or new hypothesis should be subjected to taste of significance to determine

with what validity data can be said to indicate any conclusion(s).

9. Hypothesis testing:-

After analyzing the data as stated above the researcher is in a position to test the

hypothesis, if any he had formulated earlier. Do the facts support the hypothesis or they

happen to be contrary? This is the usual question which should be answered while testing

hypothesis. Various tests such as Chi-square test, t-test, and f-test have been developed

for the purpose. The hypothesis may be tested by using one or more of such tests.

10.Generalizations and interpretation: -

If a hypothesis is tested and upheld several times, it may be possible for the

researcher to arrive at generalization. i.e. to build a theory. As a matter of fact the real

value of research lies in the ability to arrive at certain generalizations. If the

researcher had no hypothesis to start with he might seek to explain his findings on the

basis of some theory. It is known as interpretation.

53
 11. Preparation of the report or thesis: -

Finally the researcher has to prepare the report of what has been done by him. Writing

of report must be done with great care keeping in view the following.

1. The layout of report should be as follows—(1) the preliminary pages; (2) the main

text ;( 3) the end matter.

In its preliminary pages the report should carry time and date followed by the

acknowledgements and foreward. Then there should be a table of contents followed by a

list of tables and list of graphs and charts, if any, given in the report.

The main text of the report should have the following parts.

(a) Introduction: - It should contain a clear statement of the objective of the

research and an explanation of the methodology adopted in accomplishing

the research. The scope of the study along with various limitations should

as well be stated in this part.

(b) Summary of findings: After introduction there would appear a statement of

finding and recommendations in non-technical language. It the findings

are extensive they can be summarized.

(c) Main report: The main body of the report should be presented in logical

sequence and broken-down into readily identifiable sections.

(d) Conclusion: Toward the end of the main text, researcher should again put

down the results of his research clearly and precisely. In fact it is the final

summing up.

At the end of the report, appendices should be enlisted in respect of all technical

data. Bibliography, i.e. list of books, journals reports etc., consulted, should also

54
 be given in the end. Index should also be given specially in a published research

report.

2. Report should be written in a concise and objective style in simple language

avoiding vague expressions such as ‘it seems’, ‘there may be’, and the like.

3. Charts and illustrations in the main report should be used only if they present the

more information more clearly and forcibly.

4. Calculated ‘confidence limits’ much be mentioned and the various constraints

experienced in conducting research operations may as well be stated.

METHODOLOGY

The objective has been achieved with the help of a comparative study conducted about

the various channel strategies of TTSL and RIL.

The methodology employed was to collect the required information using Descriptive

Research Design with tools like questionnaire and personal interviews.

The Primary Data information sources include Company personnel, Channel partners like

Franchisees, Distributors, Dealers and most importantly the Customers, of both the

companies.

The secondary source of information were Business Magazines, Newspapers, Internet

and Company News Journals.

55
Sampling Technique

For the research undertake non probabilistic sampling has been used for surveying the

users of Reliance India Mobile Phone and Tata Indicom Mobile phone service while for

interviews of Channel Managers and Channel Partners who manage the operations and

have a significant role to play in the organization, were surveyed.

Probability sampling techniques vary in term of sampling efficiency. Sampling efficiency

is a concept that reflects a trade off between sampling cost and precision. Precision refers

to the level of uncertainty about the characteristic being measured. The greater the

precision, the greater the costs, so studies required a trade off to be made. So, choice of

sampling technique depends on these factors.

The techniques were:

Area Sampling Technique

The target population of CDMA Mobile Phone users i.e. customers of both Reliance

Infocomm Ltd. And those of Tata Tele Services Ltd. Were divided into mutually

exclusive area within region of DELHI.

Non Probalistic Judgment Sampling

To draw a simple a sampling frame various areas of DELHI was compiled. Then a set of

areas was picked for to cover best the entire city. Marketing channels outlets were the

places in these areas where these surveys were conducted. At these places it was easy to

56
get the respondents and contact them. The timings for the survey during the surveys days

was 11:30 am to 5:00 pm.

Survey of Respondents: Customers/Prospects, Channel Managers and Channel Partners.

No. of Customers/ Prospects Contacted

Tata Tele Services Ltd : 90

Reliance Infocomm Ltd. : 50

Besides the customers company Channel Managers and staff, along with the Channel

Partners were also contacted for both the companies.

Channel Managers: 2 from each company

Channel partners: 4 Nos. of Franchisees- Reliance Web World and Point of Sales POS

Delhi were contacted.

4 Nos. of Franchisees of Tata Tele Services were also contacted across Delhi only since

service. Of TTSL. is not available in DELHI area of Pratapgarh, Mirzapur and Rai

Barelley, unlike RIL who operate the services in all the above areas.

57
INTRODUCTION

OF THE

ORGANIZATION

58
 COMPANY PROFILE

TATA TELESERVICES LTD.

The telecommunication revolution is sweeping India today, and Tata Teleservices

Limited (TTSL) is spearheading this change with its range of integrated

telecommunication services.

The company was incorporated on March 23, 1995 as an SPV promoted by the Tata

Group. It was awarded the license to provide Basic Telephone Services in Andhra

Pradesh Telecom Circle by the Department of Telecommunication (DOT) in November

1977. TTSL started commercial operations in March 1999 with the aim of becoming the

largest telecom players in the country. Critical to its success is the application of cutting-

edge through collaborations with leading firms like Lucent Technologies Motorola,

Schlumberger, Kenan and Oracle.

The company signed License agreements in August 2001 for provision of basic telephony

services in Delhi, Gujarat, Karnataka and Tamil Nadu. The circles in with TTSL is

establishing a presence, make up for a major portion of international telecom traffic.

This would cover the entire south-west corridor of India which is the most lucrative

region in terms of revenue potential due to the strong business presence and

demographics of the states. Operations in all these circles initiated by December 2002.

59
TTSL has established a strong foothold iin the Maharashtra Circel, by acquiring 71%

stake in Hughes Tele.com (India) Ltd. (HTIL). The company, which has been renamed

Tata Teleservices (maharastra) Ltd., has close to 2,00,000 subscribers in the state with

more than 1,20,000 subscribers in Mumbai alone.

In phase II, the company may look at expanding operation into Kerala, Haryana and

Punjab Telecom Circles.

INVESTMENT IN TELECOM

The total project cost of the A.P. circler is estaimated at approximately Rs. 22,000 million

upto March 2004. of this, nearly Rs. 10,000 million has already been infused in the state.

The investment in new circles will be to the tune of Rs. 38,000 million. The company has

committed to total investment in excess of Rs. 70,000 million up to March 2008.

SHAREHOLDING PATTERN

The principal shareholder as on June 30, 2002 are

 Tata Power Company Ltd.

 Tata Industries Ltd.

 Tata Iron & Steel Co. Ltd.

 Tata Motors

 Tata Chemicals Ltd.

60
 TATA TELE SERVICE LTD.

History

Hyderabad, June 1996, a team of pioneering Canadians and a long Ind. The name of BM

Chowdhury ) began operating out of a small, clutter from TCL, a dream called TTSL was

taking shape.

Very soon the entire seventh floor of the hotel was taken on hire Initially, only half the

rooms were used as office space.

The rest were use das dwelling quarters by the expats and outstation members of the

team. But as more people joined TTSL, the whole floor became an office. Overlooking

the lake, the office offered a breathtaking view of Hyderabad.

After six months, TTSL moved to a of Lateef Khan complex. Despite it being Jean Guy

Locas and his gallant Nagarjuna Rao, Nagesh and Mohiudd magic to crate s simple and

elegant.

Have you noticed a beehive outside one window? The bees arrived the very day and

began building their honeycomb eyes! It was a rare experience to have this natural drama.

61
As the signing of the License Agreement took time, many of us turn watchers. We would

collect at the window and watch with curiosity a our winged guests went about their daily

chores. The industry an showed held a lesson for each one of us.

Mean while, a contest was run (by Dinesh Gopalan, need we add?_ to the agreement

would be signed. When the agreement was finally November, to the popping of

champagne bottles and sighs of relief, Vid of way fame) who came closest to the date

(other were way off the prize. And, he threw a lavish party for all of us with the proceeds

sabbatical over, it was time to roll up our sleeves and get down to brass.

TTSL, aping its apian neighbors, has since become a veritable be People are being

recruited in large numbers. What started off as a trick a torrent!

To accommodated its growing numbers, TTSL took on a new floor, a existing fifth floor.

This is not enough, apparently. We will be adding TTSL saga unfolds.

As if I the twinkling of an eye, the Mobile Switch Centre has materialized, and cell sites

are mushrooming all over the city. Soon the city will be taking about TTSL on TTSL

lines, we hope.

August 15th will always stir the hearts of many of us. That day we move stage to an

operation stage. The mar momentous occasion was the first call network. The names of

Pratap Reddy will be etched forever in the portals.

62
We have now moved beyond the first to face challenges, in all shapes and six working as

a team, we are confident and overcome them-like our friendly bees do and move ahead

towards horizons. Cheers.

ABOUT TATA TELE SERVICES LIMITED

Tata Tele Services Limited is part of the INR 64,350 crore (US$14.3 billion) Tata Group,

that has over 90 companies, over 210,000 employees and more than 2.15million

shareholders. With an investment of over INR, 9,000 crore (US$ 2 billion) in Telecom,

the Group has a formidable presence across the telecom value chain. The Tata group

plans an additional investment of around INR 9,000/- Crore (US$ 2 billion) in this sector

in the next two years.

Tata Tele Services spearheads the group’s presence in the telecom sector. Incorporated in

1996, Tata Tele Services was the first to launch CDMA mobile services in India with the

Andhra Pradesh circle.

Starting with the major acquisition of Hughes Tele.com (India) Limited now renamed

Tata Tele Services (Maharashtra Limited) in December 2002, the company has swung

into expansion mode. Tata Tele Services operates in 20 circles i.e. Andhra Pradesh,

Chennai, Gujarat, Karnataka, Delhi, Punjab, Mumbai, Himachal Pradesh, Madya Pradesh

and West Bengal. The company has a customer base of over 3 million. The investment in

the company as a March 2004 totals. INR 5995 Crore (US$ 1200 million.)

63
Having pioneered the CDMA 3 G1x technology platform in India. Tata Tele Services has

established a robust and reliance telecom infrastructure that ensure quality in its services.

It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of

a reliable, technologically advanced network.

The company, which heralded convergence technologies in the Indian telecom sector, is

today the market leader in the fixed wireless telephony market with a customer base of

1.8 Our booths use Smart Card technology, which is developed by Schlumberger, the

leaders in the Smart Card Payphone technology. The Smart Cards have a smart chip with

a pre-programmed calling value; this card is sold to the operate in the country to

introduce Smart Cards in Payphone Bootsh. Continuing with the pioneering spirit we

have also been the first in India to introduce the Payphone Management System, calling

cards for customers, smart cart (mobile booth) and patent our booth designs Capsule and

“Full cabin”

A OVERVIEW OF THE COMPANY

1) Reliance Group

Reliance Group

Reliance Group founded by Shri Dhirubhai H. Ambani (1932-2004) is India’s

largest business house with total revenues of Rs. 80,000 crores (US$ 16.8

million), cash profit of over Rs. 9,800 crores (US$ 2.1 billion), net profit of over

64
 Rs. 4,700 crores (US$ 990 million) and exports of Rs. 11,900 crores (US$ 2.5

billion.)

The group’s activities span exploration and production (E&P) of oil and gas,

refining and marketing, petrochemicals (polyester, polymers, and intermediates),

textiles, financial services and insurance, power, telecom and infocom initiatives.

Reliance emerged as India’s Most Admired Business House, for the second

successive year in a TNS-Mode Survey for 2004.

The Reliance Group Companies include: Reliance Industries Limited, Reliance

Capital Limited, Reliance Industries Infrastructure Limited, Reliance Telecom

Limited, Reliance Infocomm Limited, Reliance General Insurance Company

Limited, Indian Petrochemicals Corporation Ltd. And Reliance Energy Ltd.

Reliance Group founded by Shri Dhirubhai H. Ambani (1932-2002) is India's largest business

house with total revenues of Rs 80,000 crores (US$ 16.8 billion), cash profit of over Rs 9,800

crores (US$ 2.1 billion), net profit of over Rs 4,700 crores (US$ 990 million) and exports of

Rs 11,900 crores (US$ 2.5 billion).

The group's activities span exploration and production (E&P) of oil and gas, refining and

marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial

services and insurance, power, telecom and infocom initiatives. Reliance emerged as India's

Most Admired Business House, for the second successive year in a TNS-Mode survey for

2002.

65
The Reliance Group Companies include: Reliance Industries Limited, Reliance Capital

Limited, Reliance Industrial Infrastructure Limited, Reliance Telecom Limited, Reliance

Infocomm Limited, Reliance General Insurance Company Limited, Indian Petrochemicals

Corporation Ltd. and BSES Limited.

PRODUCTS AND SERVICES – TATA TELESEVICES

Tata Indicom is your partner in every step of life. We offer a complete range of telecom

solutions for your home and business needs, without burning a hole in your pocket. Be it

CDMA mobile, Landline connections, public Phone booths, Broadband services or

Centrex, we are present in every sphere of the telecommunications market, endeavoring

to make your life comfortable and hassle free.

Tata Indicom has a wide-range of product and service offering to meet every need of the

customer;

VOICE

1. TATA Indicom CDMA Mobile

2. TATA Indicom Phone Connections

66
3. ISDN Lines

4. E1 Links

5. Basic/Primary Interface. Managed Leased Lines

6. Direct Inward Dialing (DID)

7. Centrex

8. Public Phone Both

67
DATA

1. Shared and Dedicated Internet Bandwidth

2. Virtual Private Networks(VPN)

3. Tata Indicom International IP VPN Services

4. Tata Indicom Hosting Services

5. Industry –Specific Solutions

6. ADSL * DSL

INTERNET

1. Tata Indicom Post-Paid Internet connection

2. Tata Indicom Broadband Internet Services.

68
DATA ANAYLSIS

&

PRESENTATION

69
 CHANNEL CONFLICT

Channel conflict is something which cannot be avoided for any healthy business to grow.

Usually the conflict is between the company and the dealers when the company might ask

the dealer to withdraw from a Corporate Customer account in case if it feels that direct

interaction from the company could be better.

During an interaction with a Franchisee Channel partner of TTSL is was learnt that a few

Corporate accounts which were initially handled well by the Channel partner were taken

away by the company since it felt it could manage these accounts better.

In the long run such instances might also create resentment among the channel partners

since it would result in conflict between the company the channel partners thus affecting

business adversely.

Customers perception about Reliance Infocomm Ltd. as a company

Basis the findings of the questionnaire addressed to the customers/ prospects who could

be contacted personally at Reliance Web World and Point of Sales POS, the following

was learnt.

1) More than 90% of customers visiting Reliance Web World outlets were very

happy because of its ambience, the cleanliness maintained therein and the wide

office space available and especially the Food & Beverage section “Java Green”

which offers ready to eat Indian and Continental snacks along with hot and cold

beverages like tea, coffee, flavoured milk etc. thus also taking care of the need to

70
 eat while Surfing, Video Chatting, etc. at their Board Band section or simply

while buying a Mobile Phone connection or being there for some customer care

activity.

2) 68% people felt that the staff attending them were well mannered and courteous

to them.

3) Almost an equally member 58% felt that they are were not briefed well on all the

available models and variants and tariff structures of billing plans of mobile

phones, accessories and the service.

4) 44% felt activation of service took time.

5) The most alarming revelation which came into light was that as many as 22 %

people complained of billing related problems which the channel partner and the

and the company could not resolve easily and

Billing Problems

22%

Yes
No

78%

71
The customer had to pursue the matter with them for more than once.

6) 60% people however had a very pealing buying experience at the Reliance Web-

World outlets and nearly 82% would recommend it to their friends and family too.

15%

Delighted
Satisfied

25% Dissatisfied
60%

72
18%

Yes
No

82%

73
 5%
25%

Poor
35%
Average
Good
Very Good
Excellent
20%
15%

Respondents At The Point Of Sale POS

1) Nearly 66% respondents visiting the POS were not very happy of its ambience,

office space, accessibility etc. while they were there for buying a mobile phone or

for some customer care activity.

2) 65% people felt that the staff attending them were not every courteous and helpful

to them.

3) However majority of them 71% felt that they were attended quite fast.

4) Almost 83% of respondents however felt that they were that they were briefed

well on all the available models and variants of mobile phones and accessories.

5) Nearly 54% felt activation of service took time.

74
 34%

Yes
No

66%

6) Again nearly 34% people companied of billing related problems which the

channel partner and the company could not resolve easily and the customer had to

pursue the matter with them for more then once.

7) Ruther 31% of respondents felt that the company does not show empathy towards

its customers, which again is an alarmingly high figure.

31%

Y es
No

69%

75
8) 63% People however had a very pleasing buying experience at the POS outlet and

nearly 77% would recommend it to their friends and family too.

14%

Delighted
Satisfied
23% Dissatisfied
63%

23%

Yes
No

77%

76
CUSTOMERS PERCEPTION ABOUT TATA TELE SERVICE LTD. AS A

COMPANY

Basic the findings of the questionnaire addressed to the customers/prospects who could

be contacted personally at Franchisee outlet of Tata Tele Services Ltd. the following was

learnt.

1) As many as 76% of customers visiting the franchisee outlet of Tata Tele service

ltd. were very happy because of its ambience, the cleanliness maintained therein

and the wide office space available, while buying a Mobile connection or being

there for some customer care activity.

2) 70% People felt that the staff attending them were well mannered and courteous

to them.

3) 84% of respondents were quickly attended by the staff available at the outlet.

4) 65% felt that they were briefed well on all the available models and variants of

mobile phone and accessories.

5) Nearly 40% of respondents felt activation of service took time.

6) Another good thing which came into light that only 16% people complained of

billing related problems.

16%

Yes
No

84%

77
7) Further only 14% of respondents felt that the company does not show empathy

towards its customers.

Empathy Chart

14%

Yes
No

86%

8) 60% people has a very pleasing buying experience at the Franchisee outlet of Tata

Tele Service Ltd. and nearly 83% would recommend it to their friends and family

too.

Overal Experienc e of Visit to teh Franc hisee outlet of TTSL

16%

Delighted
Satisfied
Dissatisfied
24% 60%

78
Recom mending the Franchisee Outlet of TTSL to others

18%

Yes
No

82%

79
The Tata Group-Business sectors

The Tata operates business in seen key industry sectors. The chart below

illustrates how, in percentage terms, Tata companies in each of these sectors

contribute to the overall make up of the group. The table that follows shows the

group’s sector-wise financial performance.

11%

23% Materials

Engineering
12%

Energy

Chem cials

11% Cons umer Products

Communicatinos &
Information System
27% Services
7%

9%

80
  The most valued brand in the sub-continent

 Driving shift from product-driven portfolio to one, which leverages the value of

the brand emphasis shifting from smokestack to click- and-brick; from old

economy to dominating the e-space in our areas of domain knowledge.

 Group poised to be a knowledge economy leader encompassing

 Current areas of operations to building afresh on Internet space.

Tata Leadership in Diverse Industries

The Tata group has a leadership position in many industries.

The world’s largest integrated tea operation – Tata tea.

Asia’s largest soft ware company TCS

The world’s sixth largest manufacture of watches Titan.

India’s largest private sector steal producer- TATA STEEL

Largest fie –Star chain of luxury hotels in India- Indian hotels.

India’s largest manufacture of soda ash- Tata Chemicals.

India’s largest private sector power utility- Tata power.

81
FINDINGS

OF

THE STUDY

82
FINDINGS;

CHANNEL PARTNER’S PERCEPTION OF THE COMPANY OFFERING OF TTSL

1) The most important thing which came into light was that the channel partners are

not getting the Return on investment of 20-24% as was promised initially by Tata

Tele Services Ltd. their ROI is presently restricted to hardly 12-14% practically.

The Channel partners want far better commission and Incentives.

2) Deliveries and stocks to be maintained by the company. The channel partners

often are not able to meet the commitments made to the customers due to short

supply of phones especially the Fixed Wireless Phones.

3) Channel Partners’ feel that TTSL has got to learn to lot for being in the CDMA

Mobile Phone market and also be a little more pro-active since only then they can

be of sound competition to RIL, as anyway RIL has a wider network and reach.

83
 DISTRIBUTION STRUCTURE OF TATA TELE SERVICES LIMITED

Channel & Corporate Sale

GM Sales

Channel Manager 1 Channel Manager 1

Channel
Channel Manager 1
Manager 1

Assistant Manager 1
Channel Ma
Assistant Manager 4

84
CHANNEL PARTNER’S PERCEPTION OF THE COMPANY OFFERING OF RIL

1) Return on Investment of Channel partner’s is 18-20% which is fairly good in the

long run and also is much better than in the case of Tata Tele Services Ltd.

2) The channel partners are very happy with timely deliveries and ready stocks

available most of the time with RIL. Thus unlike in the case of TTSL Channel

partners do not loose business for want of stock and are able to meet the

commitments made to the customers.

3) However Channel Partners do feel that RIL has got to impart more and extensive

trainings to the Field and Sales staff for being better equipped to satisfy the

customer quarries.

4) Overall Channel partners take a lot of pride in representing one of the biggest

CDMA Telecom Giants of the country having a very wide back-and fibre-optical

network support.

85
 Distribution Structure of Reliance Infocomm Limited

GM - Sales

Channel Managers 1-5

Channel Managers 1-6

Reliance Web World 1-18

Distribution 1-16

Frontline Sales& Contact

Direct Agent Sales Personals

Point of Sales Dhirubhai Ambani Entrepreneurs

Sales Executive 1-8 Sales Executive 1-10

86
RECOMMENDATIONS

87
 RECOMMENDATIONS

FOR TATA TELE SERVICES LTD.

1) The company should have direct control of the Sales so as to improve the quality

of Sales. This would enable to check on customers profile more rigorously.

2) Further billing related problems also exist though not to a great extent as

compared to that in the case of Reliance. Thus this should be further minimized.

3) During interaction with the Franchisee Channel partners it was learnt that a few

Corporate accounts which were initially handled well by the Channel partner were

taken away by the company since if felt it could mange these accounts better.

However since such customers are more critical on service delivery the company

may not be able to provide them the required levels of service directly and hence

might result in non-satisfaction of the customers. In the long run this might also

create resentment among the channel partners since it would result in conflict

between the company and the channel partners. Thus such conflicts should be

amicably and immediately resolved.

4) Like RIL, TTSL should also introduce a Broadband Section and also Food &

Beverage Section wherein the customer could surf the net, play video games and

also use their Video Conference facility, and also fulfill his eating desires there

itself thus enhancing the customers’ delight in visiting their outlets which is

presently only at 60% compared to over 90% incase of Reliance Web World.

88
FOR RELIANCE INFOCOMM LTD.

1) The most important thing, which needs immediate attention from the company, is

that they should provide extensive and proper training, educate the Channel Sales

team about the various variants and models available for sale to the customer.

2) The Channel Sales teams should also be educated about the various billing plans,

tariff structures both for Post-Paid and Pre-paid connections, so as to detail the

customers properly on the same. This would help the customers to choose the

most suited billing plan as per his exact requirement and usage of the service,

rather than getting confused later leading to a lot of billing problems and wastage

of time by duplication of efforts.

3) The company should have more direct one-to-one interaction with its retail

customers thus helping in building its Brand Image as a customer friendly

company, as in choosing a mobile service a customer is quite influenced by the

word of mouth of family and friends.

This would further also reduce a lot of Billing problems since direct interaction

with the customer would enable the sales team available at the Channel partner

outlet to understand the usage requirement of the customer and then suggesting

the best suited billing plan. This way the sales team could employ the

Consultative Sales Program CSP approach, which bring in results in the long run

to the company in terms of more numbers of customers too.

89
 4) Further a lot many customers had to wait substantially at the Reliance Web World

outlets so the Channel partner need to recruit more people so that customers could

be attended quickly thus a avoiding any kind of initial resentment among the

customer too.

5) Finally the company should show more empathy towards its customers and

understand their problems whether its related to billing or to some other customer

care activity.

LIMITATIONS

The limitations mainly which I came across while working on this project were the lack

of disclosure of full information by the Channel Manager and Channel Partners especially

of Reliance Web World wherein getting out information form the above source was

slightly difficult for reasons of confidentiality.

Franchisee at the Reliance Web World also did not allow its customers to interact with

me inside their premises. Thus I had to catch respondents just outside the outlets.

further due to time constraint sample size for the survey had to be kept under 100 for both

the above companies. ttsl operate service in partapgarh, mirzapur, rai

barailley, therefore survey had to be limited to Delhi region only unlike ril

wherein respondents in Delhi could also be contracted.

90
BIBLIOGRAPHY

91
 BIBLIOGRAPHY

WEBSITE

www.tataindicom.com

www.relianceinfocomm.com

www.google.com

BOOKS:

• Marketing Management (Kotler Philip)

• Marketing Management (Saxena Rajan)

• Foundation of Advertising Theory & Practice

(Chunawala.S.A / Sethia K.C.)

• Fundamental of Marketing (Etzel Machel / Walker Bruce. J.)

• Marketing management (Ramaswamy / Namakumari)

• Research Methodology (C.R. kothari)

92
APPENDIX

93
 ANNEXERUERS: QUESTIONNAIRE

Questionnaire address to company personal and /Channel Partners

Q.1) What is your channel structure?

a) For Retail Sales:

b) For Corporate Sales

Q.2) What are the different criterion for selection of different Channel

Partner?

Q.3) What kind of support do you offer to Channel partners, viz. a viz. advertising, pop

material, brochures etc. and even technical support?

Q. 4) What pricing and discount structure/ slabs do you offer to Channel partners?

Q.5) What credit do you offer to your channel partners?

Q.6) What incentives and motivations do you offer to your partners?

Q.7) What kind of training do you impart to your channel partners and their sales and

support teams?

Q.8) How many Channel partners represent you in DELHI in Delhi?

Q.9) What stocks do you expect your dealers to maintain?

Q.10) How do you evaluate the channel partners performance and how frequently is it

done?

Q.11) How do you perceive the Channel offering of the company?

94
 QUESTIONNAIRE

ADDRESSED TO CUSTOMERS/PROSPECTS

Name : Age: Sex: M/F

Married: Yes/No

Address:

Phone No.:

Q.1 ) What products/service you wanted to purchase or purchased?

Q.2) What is the price you purchased at? Is it suitable and justified?

a) One time price/charge Yes /No

b) Recurring Service Charges: Yes /No

Q.3) Where did you purchase from?

Q.4) What did you like about this Channel partner?

Rate of following on a scale 1-5

(1-Poor, 2- Average, 3- Good, 4- Very Good and 5- Excellent)

a) Office space and ambience.

b) Contact personnel’s courtesy and helpfulness.

c) Contact personnel’s knowledge.

d) How fast were you attended.

95
 e) Where the various options available detailed and or demonstrated to you

by the person who attended you.

f) Were the service or product you bought activated immediately.

Q.5) Are you comfortable are you using the mobile phone service? Do you get full?

Coverage or is their frequent signal/ call drop?

Q.6) Did you have any billing related problems?

Q.7) Do think the company is showing empathy to its customers?

Q.8) Are you comfortable using the different facilities/handset features?

Q.9) Describe in a few words overall buying experience here?

Q.10) Would you come back to buy something else or recommend this outlets to your

family of friends?

96
Reliance Web World
Customer/Prospect Sample Size-

50
Monthly Income 0-10000 10001-25000 25001-50000 >50000
8 15 18 9

One time Charges

Low 28
High 22

Recurring Charges
Low 17
High 33

Channel Partner Rating, Scale 1- Poor Average Good Very Excellent

5
Office Space and Ambience 0 0 4 31 15
Contact personnel’s courtesy 0 4 12 28 6
Contact Personnel’s Knowledge 0 8 13 18 11
How fast were you attended 0 18 18 17 0
Various options detailed to you 0 14 15 8 13
Quickness in service activation 0 8 14 18 10
Any billing related problems

with the company

Yes 11
No 39
Is the company empathetic

towards its Customers

Yes 38

97
No 12
Overall Experience of Visit to

outlet

Delighted 24
Satisfied 10
Dissatisfied 6

Would you recommend the

outlet to friends/family

Yes 33
No 7

Point of Sale POS

Customer/Prospect Sample Size-

35
Monthly Income 0-10000 10001-25000 25001-50000 >50000
10 12 9 4

One time Charges

98
Low 26
High 9

Recurring Charges
Low 13
High 22

Channel Partner Rating, Scale 1- Poor Average Good Very Excellent

5
Office Space and Ambience 0 8 15 12 0
Contact personnel’s courtesy 5 12 8 6 4
Contact Personnel’s Knowledge 0 10 14 6 5
How fast were you attended 0 0 10 18 7
Various options detailed to you 0 0 17 12 6
Quickness in service activation 0 6 13 12 4
Any billing related problems

with the company

Yes 12
No 23
Customers
Yes 24
No 11
Overall Experience of Visit to

outlet

Delighted 22
Satisfied 8
Dissatisfied 5

99
Would you recommend the

outlet to friends/family

Yes 27
No 8

Tata Tele Services Ltd.

Customer/Prospect Sample Size-

50
Monthly Income 0-10000 10001-25000 25001-50000 >50000
8 15 18 9

One time Charges

Low 35
High 15

Recurring Charges
Low 32
High 18

Channel Partner Rating, Scale 1- Poor Average Good Very Excellent

100
5
Office Space and Ambience 0 0 12 22 16
Contact personnel’s courtesy 0 6 15 11 18
Contact Personnel’s Knowledge 0 0 12 16 12
How fast were you attended 0 0 8 22 20
Various options detailed to you 0 0 14 18 10
Quickness in service activation 8 12 15 9 6
Any billing related problems

with the company

Yes 8
No 42
Is the company empathetic

towards its Customers

Yes 43
No 7
Overall Experience of Visit to

outlet

Delighted 30
Satisfied 12
Dissatisfied 8

Would you recommend the

outlet to friends/family

101
Yes 41
No 9

102