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Summer project report
On
The Marketing Strategy of Rim Prepaid
Submitted as a project report in partial fulfillment of the degree of
Master of Business Administration
Submitted To: Submitted By:
Ms. Lata Rani Ajay Kumar
MBA 3rd SEM
09272970004
1
DECLARATION
I declare that the project report titled “The market strategy of
Rim prepaid” is an original work and this report has not
submitted earlier to this institute/ any other institute for the
fulfillment of requirement of the study. Any part of the project
if found to be invalid/duplicate or in case of plagiarism, I AJAY
KUMAR student of SRI RAM INSTITUTE OF
MANAGEMENT & TECHNOLOGY, GREATOR NOIDA is
ready to face the consequences.
This project is the property of the institute and any use of
project without the written permission of the institute will be
considered illegal.
(AJAY KUMAR)
2
ACKNOWLEDGEMENT
A summer training project is an integral part of a MBA. It helps
the student to undergo a simulation test of what the student is
going to face in his future job sphere and a taste of practicality.
It helps the student to understand how an organization works.
The competitive atmosphere, the ups and downs in the cycle of
the organization, the enthusiasm of interacting with newer
people and gaining vast practical knowledge is what a summer
trainee goes through during his/her months in the organization.
My project in Reliance communication is an experience worth
sharing. The summer training project has enhanced my
managerial skills and made me apt to face all the hurdles in my
future.
The vast knowledge that I have gained in these two months
in Reliance Money, I have tried to put them down in this project
report. I am really thankful to Mr. Anuj Kumar srivastava City
Head Allahabad, Reliance Communication for constantly
mentoring my efforts and guiding me for making this project a
success.
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I am greatly indebted to all my family members and friends for
their support and encouragement.
PREFACE
As a student of MBA, one of the most reputed professional courses, I consider it’s my privilege to thank all the persons involved in the working of this project and their supervision and guidance I have been able to complete this project. The attractive feature of the MBA is that along with theory we also get to have the exposure of the practical environment. The entire journey from the very idea of this project report to reality would not have been possible without guidance and support of many people. The Project Report is based on Systematic and Scientific search for pertinent information on Specific Topic.
The Project Report revolves around the telecom industry to explore the various aspects of mobile technology. The certain objectives were predefined and the task was to accomplish them.
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The study was confined geographically to the set of questionnaire was prepared & scrutinized before going for market analysis.
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TABLE OF CONTENTS
Contents Page
1. General Introduction 7
2. Company Profile 15
3. Project Study 22
4. Research Methodology 37
5. Data Preparation 69
6. Finding 107
7. Recommendation & Suggestions 111
8. Conclusion 113
9. Bibliography 115
10.Questionnaire 117
INTRODUCTION6
TO
TOPIC
Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, i t is India’s leading integrated telecommunicat ion company with over 85 mil l ion customers.
The Late Dhirubhai Ambani dreamt of a digi tal India - an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly buil t India’s largest private sector company virtual ly from scratch, had stated as early as 1999: “Make the tools of information and communication avai lable to people at an affordable cost . They wil l overcome the handicaps of i l l i teracy and lack of mobili ty.”
I t was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28
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December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.
Reliance Communicat ions has a reliable, high-capacity, integrated (both wireless and wirel ine) and convergent (voice, data and video) digital network. I t is capable of del ivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applicat ions, and consulting.Today, Reliance Communicat ions is revolut ionising the way India communicates and networks, truly bringing about a new way of l ife.
RCom’s business encompasses a complete range of telecom services covering mobile and fixed line te lephony. I t includes broadband, nat ional and internat ional long distance services and data services along with an exhaustive range of value-added services and applications. The company's constant endeavour is to achieve customer delight by enhancing the productivi ty of the enterprises and individuals i t serve.
Reliance Mobile (formerly Reliance India Mobile), launched on December 28, 2002, coinciding with the joyous occasion of the la te Dhirubhai Ambani’s 70th birthday, was among the ini t ia l init iatives of Reliance Communications. I t marked the auspicious beginning of Dhirubhai’s dream of ushering in a digital revolut ion in India. Today, we can proudly claim that we were instrumental in harnessing the true power of information and communicat ion, by bestowing i t in the hands of the common man at affordable rates.
Business area of the company:
The company is mainly engaged into the businesses of, Wireless, Broadband, Rural Communicat ion, Reliance World, IDC, Carrier Business and Infrastructure Business.
Reliance Mobile - With over 85 mill ion subscribers across India, Reliance Mobile is India’s largest mobile service brand. Reliance Mobile services now cover over 20,000 towns, 5 lakh vil lages and counting.
Reliance Mobile World - The Reliance Mobile World suite of Reliance Mobile is a unique Java-based applicat ion. I ts uniqueness l ies in the fact that i t enables complex Internet applicat ion to be introduced in mobile phones effectively and quickly. Reliance Mobile World receives over 1.5 bil l ion page views per month from Reliance Mobile users.
Broadband- The successful roll ing out of real broadband services across the nation marks the second chapter of Reliance Communications’ commitment to usher in a digi tal revolut ion in India.
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E-education
Digital Workplaces
E-healthcare
Integrated Enterprise Solut ion
Rural Communication- Reliance Communications is committed to bringing about a complete revolution in rural telephony. With this goal set high on i ts agenda, i t has ini t ia ted a mammoth expansion plan to reach out to four lakh vil lages across the length and breadth of the country.
Village Public Telephone
Rural Community Phone (RCP)
Rural Household DELs
IDC- Reliance is India 's largest Internet Data Center (IDC) service provider, hosting business crit ical applications of Indian and foreign blue chip companies, f inancial insti tutions and other important organisat ions. Rel iance Internet Data Centers are truly world class Level 3 (highest) IDC facil i t ies, with more than 200,000 sq ft of host ing space.
Reliance World - Reliance World (formerly Reliance WebWorld) is a world-class nat ionwide chain of retail out lets for products and services of the Reliance – Anil Dhirubhai Ambani Group. I t is designed to give the customer a delightful experience of the digital world of information, communication, entertainment and uti l i ty services.
Carrier Business - Reliance Communications is a National Long Distance (NLD) and Internat ional Long Distance (ILD) service provider, rendering national and international transport l inks between other telecommunication service providers' networks. I ts wholesale customers include Indian and internat ional telephony service providers, Internet service providers, long-distance carriers, cal l centre operators, mult inat ional companies, business process outsourcing (BPO) companies, IT-enabled service (ITES) providers and government and quasi-government organisat ions.
Infrastructure Business - RTIL, a subsidiary of Reliance Communicat ions Limited, was incorporated in 2001 as a private l imited company. Reliance Communications Limited (“RCOM”) had fi led a Scheme of Arrangement with the High Court of Judicature at Bombay on December 5, 2006 for the separation of i ts wireless towers assets owned by RCOM and its wholly owned subsidiary Reliance Telecom Limited (“RTL”). RTIL is an independent wireless telecommunicat ions
9
infrastructure company in India, engaged in the business of bui lding, owning and operating communicat ions towers and related assets ( together, “passive infrastructure”), which i t will lease to the wireless operators under long-term contracts .
Dhirubhai Ambani Biography
Born: December 28, 1932Died: July 6, 2002Achievements: Dhirubhai Ambani built India's largest private sector company. Created an equitycult in the Indian capital market. Reliance is the first Indian company to feature in Forbes 500 listDhirubhai Ambani was the most enterprising Indian entrepreneur. His life journey is reminiscentof the rags to riches story. He is remembered as the one who rewrote Indian corporate historyand built a truly global corporate group.Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, atChorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started
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his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar over the weekends.After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He worked thereas a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs50,000 and set up a textile trading company.Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's largest private sectorcompany, Reliance India Limited, from a scratch. Over time his business has diversified into acore specialisation in petrochemicals with additional interests in telecommunications, informationtechnology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics.Dhirubhai Ambani is credited with shaping India's equity culture, attracting millions of retailinvestors in a market till then dominated by financial institutions. Dhirubhai revolutionised capitalmarkets. From nothing, he generated billions of rupees in wealth for those who put their trust inhis companies. His efforts helped create an 'equity cult' in the Indian capital market. Withinnovative instruments like the convertible debenture, Reliance quickly became a favorite of thestock market in the 1980s.In 1992, Reliance became the first Indian company to raise money in global markets, its highcredit-taking in international markets limited only by India's sovereign rating. Reliance alsobecame the first Indian company to feature in Forbes 500 list.Dhirubhai Ambani was named the Indian Entrepreneur of the 20th Century by the Federation ofIndian Chambers of Commerce and Industry (FICCI). A poll conducted by The Times of India in2000 voted him "greatest creator of wealth in the century".Dhirubhai Ambani died on July 6, 2002, at Mumbai.
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INFOCOMM BUSINESS
Relianec Infocomm offers a comple te range of te lecom services such as
mobile and f ixed l ine te lephony including broadband, nat ional and
internat ional long dis tance services , data services and a wide range of
value added services and applicat ions that wil l enhance the productivi ty
of enterprises and individuals .
Reliance India Mobile , the f i rst of Infocomm’s ini t ia t ives was launched
on December 28,2002 the 70 t h b ir thday of Sh. Dhirubhai Ambani .
RELIANCE GROUP
Reliance group founded by Sh. Dhirubhai Ambani(1932-2002),India’s
largest business house with total revenues of Rs.80000 Cr,Cash Profi t
of over Rs.9800 Cr, net profi t of Rs.4700 Cr and Exports over Rs.11900
Cr for the las t f inancial year .
Reliance group of companies consists of : Rel iance Capi tal Ltd. ,
Rel iance Industr ial Infrast ructure Ltd, Rel iance Mutual Fund
Ltd. ,Reliance Infocomm Ltd. ,Reliance General Insurance Ltd.
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COVERAGE
60000 km of opt ic and f ibre backbone tha t connects over 90% of
populat ion.
Wireless network being rol led out in 600+ ci t ies ini t ia l ly wi th plan
to expand to the ent ire mass of India by 2008.
2588 Base t ransreceiver s tat ions (BTS) across the country focussing
wireless network.
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COMPANY
PROFILE
15
BOARD OF DIRECTORS
OF
RELIANCE COMMUNICATION
MR ANIL D. AMBANI- CHAIRMAN
Prof. J ramachandran- INDEPENDENT DIRECTOR
MR RAJENDRA P. CHITALE- DIRECTORS
MR C.P. JAIN- ADDITIONALDIRECTOR
KEY EXECUTIVE
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MR V.R. MOHAN- COMPANY SECRETARY AND
MANAGER
Telecommunication
In the middle Ages, chains of beacons were commonly used on hil l tops as a means of relaying a signal. Beacon chains suffered the drawback that they could only pass a single bit of information, so the meaning of the message such as "the enemy has been sighted" had to be agreed upon in advance. One notable instance of their use was during the Spanish Armada, when a beacon chain relayed a signal from Plymouth to London signaling the arrival of Spanish ships.
In 1792, Claude Chappe , a French engineer , bu i l t the f i rs t f ixed v i sual t e legraphy sys tem (or semaphore l ine ) be tween Li l l e and Par is . However semaphore suffered f rom the need for sk i l l ed opera tor s and expens ive towers a t in te rval s of t en to th i r ty k i lomet res (s ix to n ine teen mi les ) . As a resu l t o f compet i t ion f rom the e lec t r ica l t e legraph, the las t commercia l l ine was abandoned in 1880 .
Telegraph and telephoneThe first commercial electrical telegraph was constructed by Sir Charles Wheatstone and Sir Wil liam Fothergi ll Cooke and opened on 9 Apri l 1839. Both Wheatstone and Cooke viewed their device as "an improvement to the [exist ing] electromagnetic te legraph" not as a new device.
Samuel Morse independently developed a version of the electrical telegraph that he unsuccessfully demonstrated on 2 September 1837. His code was an important advance over Wheatstone's signaling method. The first transat lant ic te legraph cable was successfully completed on 27 July 1866, allowing transat lantic te lecommunication for the fi rst t ime.
The conventional te lephone was invented independently by Alexander Bell and Elisha Gray in 1876. [ 6 ] Antonio Meucci invented the first device that allowed the electrical transmission of voice over a l ine in 1849. However Meucci 's device was of l i t t le practical value because i t re lied upon the electrophonic effect and thus required users to place the receiver in their mouth to "hear" what was being said. [ 7 ] The fi rst
17
commercial te lephone services were set up in 1878 and 1879 on both sides of the Atlantic in the cit ies of New Haven and London.
Radio and televisionIn 1832, James Lindsay gave a classroom demonstration of wireless telegraphy to his students. By 1854, he was able to demonstrate a transmission across the Firth of Tay from Dundee, Scotland to Woodhaven, a distance of two miles (3 km), using water as the transmission medium. [ 1 0 ] In December 1901, Guglielmo Marconi establ ished wireless communication between St. John's , Newfoundland (Canada) and Poldhu, Cornwall (England), earning him the 1909 Nobel Prize in physics (which he shared with Karl Braun). [ 1 1 ] However small-scale radio communication had already been demonstrated in 1893 by Nikola Tesla in a presentation to the National Electric Light Associat ion.[ 1 2 ]
On 25 March 1925, John Logie Baird was able to demonstrate the transmission of moving pictures at the London department store Selfridges . Baird 's device relied upon the Nipkow disk and thus became known as the mechanical te levision . I t formed the basis of experimental broadcasts done by the Brit ish Broadcast ing Corporation beginning 30 September 1929. [ 1 3 ] However, for most of the twentieth century televisions depended upon the cathode ray tube invented by Karl Braun. The first version of such a te levision to show promise was produced by Philo Farnsworth and demonstrated to his family on 7 September 1927.
Computer networks and the InternetOn 11 September 1940, George St ibitz was able to transmit problems using teletype to his Complex Number Calculator in New York and receive the computed results back at Dartmouth College in New Hampshire . [ 1 5 ] This configuration of a central ized computer or mainframe with remote dumb terminals remained popular throughout the 1950s. However, i t was not unt il the 1960s that researchers started to investigate packet switching — a technology that would al low chunks of data to be sent to different computers without f i rst passing through a centralized mainframe. A four-node network emerged on 5 December 1969; this network would become ARPANET, which by 1981 would consist of 213 nodes.
ARPANET's development centred around the Request for Comment process and on 7 April 1969, RFC 1 was published. This process is important because ARPANET would eventually merge with other
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networks to form the Internet and many of the protocols the Internet relies upon today were specified through the Request for Comment process. In September 1981, RFC 791 introduced the Internet Protocol v4 (IPv4) and RFC 793 introduced the Transmission Control Protocol (TCP) — thus creating the TCP/IP protocol that much of the Internet relies upon today.
However, not al l important developments were made through the Request for Comment process. Two popular l ink protocols for local area networks (LANs) also appeared in the 1970s. A patent for the token ring protocol was fi led by Olaf Soderblom on 29 October 1974 and a paper on the Ethernet protocol was published by Robert Metcalfe and David Boggs in the July 1976 issue of Communications of the ACM . [ 1 7 ] [ 1 8 ]
A basic te lecommunication system consists of three elements:
A transmitter tha t takes information and conver t s i t to a signal ;
A transmission medium tha t ca r r ies the s igna l ; and ,
A receiver tha t rece ives the s igna l and conver t s i t back in to usable informat ion .
For example, in a radio broadcast the broadcast tower is the transmitter , free space is the t ransmission medium and the radio is the receiver. Often telecommunicat ion systems are two-way with a single device act ing as both a t ransmit ter and receiver or transceiver . For example, a mobile phone is a transceiver.
Telecommunication over a telephone l ine is called point-to-point communication because i t is between one transmitter and one receiver. Telecommunication through radio broadcasts is called broadcast communication because i t is between one powerful transmitter and numerous receivers. Analogue or digitalSignals can be either analogue or digital . In an analogue signal , the signal is varied continuously with respect to the information. In a digital signal, the information is encoded as a set of discrete values (for example ones and zeros). During transmission the information contained in analogue signals will be degraded by noise. Conversely, unless the noise exceeds a certain threshold, the information contained in digital signals will remain intact. Noise resistance represents a key advantage of digital s ignals over analogue signals.
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NetworksA network is a collection of transmitters, receivers and transceivers that communicate with each other. Digital networks consist of one or more routers that work together to t ransmit information to the correct user. An analogue network consists of one or more switches that establ ish a connection between two or more users. For both types of network, repeaters on a base stat ion may be necessary to amplify or recreate the signal when i t is being transmitted over long distances. This is to combat attenuat ion that can render the signal indist inguishable from noise.
ChannelsA channel is a division in a t ransmission medium so that i t can be used to send multiple streams of information. For example, a radio stat ion may broadcast at 96.1 MHz while another radio station may broadcast at 94.5 MHz. In this case, the medium has been divided by frequency and each channel has received a separate frequency to broadcast on. Alternatively, one could al locate each channel a recurring segment of t ime over which to broadcast—this is known as t ime-division mult iplexing and is sometimes used in digital communication.
PURPOSEWe are wi tness ing a kind of sea change in IT related product market ing
and among the top companies who are in this f ie ld are RELIANCE
INFOCOMM LTD.
We a l l know that the mobile industry is rapidly growing in our country
and the future of mobile companies are very br ight as we are in the very
thresh hold of mobile revolut ion.
Comparing China we are st i l l far behind the rat io of mobi le phone users
per thousand and the industry i s predict ing tha t there would be over 100
mil l ion mobile phone users in India by year 2008.
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The purpose of the s tudy is to unders tand the competi t ion posed by
various GSM and WILL services providers in U.P. (East) and to analyze
the process of covering the major chunk of the market segments of
Mobi le phone users of the area .
Reliance Infocomm is a major player and fas t becoming a force to
reckon wi th in U.P. (East) a lready is having 3 lac subscribers in the
area .
Aim
To understand the Marketing Mix Strategy of the RIM PREPAID.
Objectives
To analyze the buying behavior of the market segment vis-à-vis
market ing mix s trategy of RIM-PREPAID.
To measure the eff iciency of the market ing mix s trategy of
competi tors for prepaid services .
To analyze the 4 Ps of the af ter launch campaign has prepaid
services.
What are the reasons for the s low growth for prepaid services ?
What are the specif ic buying pat tern of the middle income group?
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Whether the launch of RIM-PREPAID had helped Rel iance improve
thei r market share in the area?
PROJECT
STUDY
22
MARKETING STRETEGY OF RIM- PREPAID
ANALYSIS AND EVALUATION
The central miss ion of this project was to analyze the growth of the
Market Share of the Rel iance Infocomm Ltd. By analyzing the market
st rategy in Allahabad ci ty with respect to other service providers of
mobile phones .
The report is ventured upon to give a perspect ive of how the middle
income and the f i rs t t ime Users buy a mobi le phone connect ion and
thei r buying pat tern. The survey inst rument used by us basical ly
consis ts of survey quest ions , which are open and end type in which we
have tr ied to seek responses from the walk-in customers at var ious
out le ts and meeting people a t var ious shopping malls and residentia l
local i t ies .
In a nutshel l I can say that each and every part of the report has been
made in such a way tha t i t covers the ent ire spectrum of re levant facts
and data rela ted to the mobile market in Allahabad.
In spi te of my best effor ts , we fee l tha t the report may admit
possibi l i t ies of fur ther improvement for which I would happy and
grateful to receive suggest ions and advice from my seniors and al l .
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BREIF DESCREPTION OF RIM COMMUNICATION
2008
January 12 - Rel iance Communications receives Start-up GSM Spectrum
January 16 - Yahoo partners with Reliance Communications to provide Yahoo One Search for i ts CDMA and GSM customers.
January 31 - RCOM's Q 3 Net Profit increases by 48.5% and Revenues Up by 29.8 %. Remains the most profitable Telecom Company in India.
February 4 - Rel iance Communicat ions offers Lifet ime Validi ty at Rs 199
RCOM’s subsidiary Infratel f i les Draft Red Herring Prospectus with SEBI
February 5 - Reliance Mobile strengthens i ts religious content portfolio on Mobile by t ie-up with Sadhana TV
February 14 - RCOM in partnership with CanvasM, launches Mulitplayer Mobile Games
February 19 - HDFC Bank t ies up with RCOM, turns every Reliance Mobile into a credi t card
February 27 - Reliance Communicat ions consolidates Global Telecom Business under “Business Globalcom”
Reliance Communications forays into International Mobile Market with GSM License in Uganda.
March 3 - Reliance Communications drops prices of Internet Data Cards
March 10 - Reliance Communications announces ESOPs for over 20,000 employees
March 20 - Reliance Communications and HTC forge Strategic Alliance
March 27 - Corporation Bank Launches Banking Services on Reliance Mobile World
Apri l 1 - Rel iance Communicat ions forays into IT space, launches Reliance Technology Services Company
24
Apri l 9 - RCOM launches Educational Portal on Reliance Mobile Phones
Apri l 25 - Reliance Globalcom unit Reliance Infocom BV, Netherlands acquires Global WiMAX Operator eWave World
Apri l 29 - Reliance Communicat ions Announces Unlimited Free STD calls
April 30 - Rel iance Globalcom Launches Passport Global SIM
RCOM's Net Profi t up by 70.8% to Rs 5,401 crore
May 2 - Reliance Communications’ Net Profi t up by 70.8% to Rs 5,401 crore (US$ 1,350 mil l ion), Revenues higher by 31.8% to Rs.19, 068 crore (US$ 4,765 mill ion) and EBIDTA increases by 43.3% to Rs.8, 199 crore (US$ 2049 mil l ion)
May 12 - Reliance Communications and Alcatel form Joint Venture to offer Managed Network Services to telcos across the globe
May 26 - Reliance Globalcom acquires UK based VANCO Group Limited
June 24 - Reliance Globalcom, Stealth Communicat ions forge Strategic All iance to extend VOIP Network across 50 countries
July 12 - CA Exam Results on Reliance Mobile
July 22 - Reliance Communications Mobile Subscriber base crosses 50 Million
July 29 - CA Professional Exam Results on Reliance Mobile
July 31 - Reliance Communications (RCOM) announces i ts f inancial results for the fi rst quarter ended June 30, 2008. Net Profit up by 23.9% to Rs. 1,512 crore (US$ 352 mill ion)
2007
January 10 - Reliance Communications adds a record 1.4 mill ion subscribers in December ‘06
January 18 - Reliance Communication launches unique 'Simply 2030' plan on Reliance Hello
January 25 - Reliance Communications promotes Roger Waters Music Concert
January 29 - RCOM shareholders approve tower business demerger with a 99.99% overwhelming majori ty
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January 30 - Overwhelming response to Reliance World’s National Digital Elocution Competit ion
January 30 - Rel iance joins Lenovo and Intel for 'Internet on the Move'
February 2 - Rel iance Communicat ions’ market capi talizat ion tops Rs 1 lakh crore ( 1 tr i l l ion rupees or 24.39 bi l l ion US dollars) on Bombay Stock Exchange
February 16 - Reliance Communicat ions offers best value on roaming
February 26- Search Jobs & Classified Ads from Reliance Mobile World - Reliance Communications t ies up with Naukri.com
March 6 - Rel iance Communications ushers in ‘Virtual Global Conference Network’
March 7 - DHIRUBHAI AMBANI – THE MAN I KNEW By KOKILABEN Book on Founder Chairman launched.
March 8 - Rel iance Communications launches ‘Roam Jamaica on Reliance Mobile
March 16 - Reliance Mobile launches ' Suno Zee’
March 19 - Demerger of Passive Infrastructure division Reliance Communicat ions & Reliance Telecom approved by the Bombay High Court
March 21 - Reliance World Offers Program to Help Students ’Crack Admissions in Colleges Abroad’
March 23 - Govt’s Rural Telephone Scheme(RDEL)through Reliance Communications successfully closes by March 31,2007
March 26 - Booking train t icket from Reliance Mobile Phones becomes more easy now… with ITZ Cash Cards
April 4 - Reliance Communicat ions unleashes the power of mobile advert ising
April 6 - Reliance Communicat ions acquires 1.2 mill ion subscribers in March 2007.
April 11 - Sunny Days And Nights For Reliance Mobile Subscribers as Reliance Communications t ies up with SUN TV to offer video streaming of all SUN TV programs online 24x7
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April 11 - Reliance World launches summer e camp for school kids
April 30 - RCOM first l is ted Indian telecom company to reward shareholders
May 2 - A Classic Bonanza – Reliance Communications unvei ls handsets @ Rs 777
May 9 - RCOM bags West Bengal E-Governance Project
May 10 - Reliance sets a new record, one mill ion Classic handsets sold in just one
May 12 - Reliance Communications slashes rate to US and Canada. I t 's now just Rs 1.99 per minute
May 14 - Reliance Communications launches Classic Color Bonanza - Color handsets @ Rs 1234
May 17 - RCOM kick starts world 's fastest and largest rural infrastructure rol lout on World Telecom Day.
May 18 - Reliance Communicat ions Launches Lifet ime Validity Recharge @ Just Rs.499.
May 22 - RCOM slashes roaming rates by as much as 70 percent
May 25 - Reliance Communications launches unlimited cal l ing
June 5 - RCOM hosts seminar on ‘Emerging Trends in Mobile Applications Development’
June 6 - Reliance Communications adds 1.4 mill ion new mobile subscribers in May2007
June 6 - Reliance Classic ' Makes Music - FM Radio Phones Launched at just Rs.1888
June 27 - Reliance World, BIMTECH & Philadelphia University unveil Executive Program in Retail Management (EPRM)
June 28 - Reliance Communications t ies up with Cisco to launch Business Internet Services for SMEs in Pune
July 4 - Bengali movie ‘Anuranan’ on Reliance Mobile World
July 7 - RCOM and QUALCOMM Collaborate on CDMA2000 Expansion
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July 12 - Reliance Communications awards Alcatel-Lucent a Next-Gen network expansion contract
July 12 - Reliance Communications awards Huawei all IP Next-Gen network expansion contract
July 19 - RCOM announces sale of equity stake in i ts Tower Company-Reliance Telecom Infrastructure Limited
July 19 - RCOM's AGM on Reliance Mobile World
July 23 - Reliance Communications launches Passport Cal ling Solutions
July 25 - RCOM join hands with Yatra.com for air and hotel bookings
August 20 - RCOM offers 'Live Mandi Prices ' on Reliance Mobile World
August 31 - Rel iance Communications , the official global partner for the fi rst edit ion of ICC Twenty 20 World Cup Championship 2007 in South Africa unveils the coveted Trophy in Mumbai and announces Dhoni - Dhanadan Pack
September 9 - Reliance Communications launches Money Transfer on Reliance Mobile Phones
September 10 - RCOM launches BlackBerry 8830 World Edit ion Smartphone 'Bloomberg Professional ' now on Reliance Mobile
September 11 - Rel iance Communications t ies up with Sulekha.com to offer local search on Reliance Mobile World
September 18 - Strategic partnership with Vanco
October 3 - Reliance Communicat ions announces Classic Celebrations- Classic Handset sales top 10 mill ion- Color Handset @ Rs.999
October 20 - Reliance Communicat ions to launch nationwide GSM Services under existing Unified Access Service Licenses
October 22 - Reliance Communications brings 'Durgotsav Live ' Videocast on mobile
November 7 - Reliance Communicat ions Launches 'Diwali Dhamaka'
November 15 - RCOM launches Rural Mobile Application Contest
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November 16 - Fair & Lovely Scholarship on Reliance Mobile World is winner at the MMA awards, USA
November 27 - FLAG and GlassHouse ink landmark partnership
December 11 - Reliance Communications adjudged World’s Top CDMA Operator at the Global CDMA Industry Achievements Awards Fete
December 20 - Reliance Communications completes Yipes’ acquisi t ion
December 24 - RCOM announces special offers for Christmas and New Year.
2006
January 01 - Rel iance Infocomm launches 'One Nation, One Tariff ' to enable Reliance IndiaMobile prepaid users to cal l anywhere in India at Re one per minute.
January 19 - Reliance Demerger adds record Rs.55, 000 Crore to shareholder wealth
January 23 - TIMES NOW launched on Reliance Mobile Phones, making it the world’s f irst TV channel to be launched on a mobile phone.
March 06 - Reliance Communications Ventures Ltd. (RCVL), India 's leading integrated telecommunicat ions company, a member of the Reliance - Anil Dhirubhai Ambani group, l is ts on the Bombay Stock Exchange and National Stock Exchange.March 21
Reliance Infocomm introduces R World in Hindi to become the world 's f irst operator to offer mobile data services in more than one language on the same handset. This will make it possible for mil l ions of Indians to access the popular R World with hundreds of every-day-use applications in the nat ional language.
March 23 - Reliance-Anil Dhirubhai Ambani Group signs up Indian cricket 's whiz kid and heartthrob of mill ions Mahendra Singh Dhoni as the brand ambassador for Reliance Communications Ventures Ltd.
March 29 - Reliance Infocomm becomes India’s f irst telecom operator to launch seamless inter-standard international roaming service - 1World.1Number, with single number on international CDMA and GSM networks.
29
April 27 - Reliance Communicat ions launches India’s f irst Talking Message Service (TMS) enabling i ts mobile users to send voice messages to not only other mobiles but also fixed wireless phones (FWP) and landlines.
June 22 - Reliance Communications t ies up with Disney to offer on Reliance Mobile World India 's f i rst 3D animation on mobile .
July 03 - Reliance Communications launches 'Hello Capital Plan' to enable i ts subscribers in 19 state capitals to call each other at the local call rate of 40 paise per minute.
July 19 - Reliance Communications slashes ILD rates by up to 66%
August 7 - T-Com signs contract with FLAG Telecom for Europe-US bandwidth
September 5 - Union Communicat ions & IT Minister Thiru Dayanidhi Maran inaugurates Reliance Communications’ FALCON Cable System.
November 17 - Reliance Communications launches Free Group Term Life Cover for i ts CDMA subscribers
December 28 - Reliance Communications’ FLAG Telecom announces FLAG Next Gen to cover 60 countries
2005
January 04 - Rel iance introduces fi rst e-recharge facil i ty in CDMA in India.
January 24 - Rel iance IndiaMobile announces mega rural plan to cover 4 lakh vil lages and 65 crore Indians by December 2005.
June 26 - Anil Ambani appointed Chairman of Reliance Infocomm
July 30 - Air Deccan and Reliance WebWorld join hands to offer air t icket booking facil i ty at Reliance WebWorld
August 11 - XLRI's Post-Graduate Certi f icate programme in Logistics Supply Chain Management (PGCLSCM) launched on Reliance WebWorld's virtual classroom platform. fi rst of i ts kind e-learning programme in India.
August 18 - Rel iance Infocomm rolls out internat ional roaming faci l i ty across several countries to become the first Indian CDMA operator to offer i ts customers such a service.
September 06 - Rel iance Infocomm tied-up with the Bombay Stock Exchange to make available l ive stock quotes on i ts mobile phones.
30
September 15 - Reliance Communications, UK launched Reliance IndiaCall service in England and Wales enabling cal lers to make high-qual ity cal ls to India from any landline or mobile phone at economical rates.
September 21 - Apollo Hospital and Reliance Infocomm join hands to provide top class healthcare service to mill ions of Indians in over a hundred Indian ci t ies.
October 13 - Reliance WebWorld wins Frost & Sullivan Market Leadership Award for Video Conferencing services.
November 12 - Reliance Infocomm hosts the 4th global CDMA Operators Summit.
November 22 - Reliance Infocomm joins hands with Indian Airlines to offer India 's f irst mobile booking of domestic airl ine t icket.
November 30 - Reliance Infocomm introduces MOREbile, redefines customer rewarding with 33 % more talk t ime on prepaid recharges of Rs 315 denominat ion and above and much more.
December 12 - Reliance Infocomm and China Telecom sign agreement for telecom services to provide direct telecommunication service, including a global hubbing service, to subscribers in the two countries.
2004
January 12 - Internat ional wholesale telecommunicat ions service provider, FLAG Telecom amalgamates with Reliance Gateway, a wholly owned subsidiary of Reliance Infocomm
February 9 - Launches RIM Prepaid with attractive offer - For Rs 3500 get a Motorola C131 mobile phone and Rs 3240 worth of re- charge vouchers instant ly and stay connected for 1 year
February 17 - Rel iance subsidiary Flag Telecom announces FALCON Project - a major new Middle East Loop Terabi ts Submarine Cable System with l inks to Egypt and Hong Kong via India
March 22 - Reliance Infocomm launches multi -player gaming on RIM handsets - a f irst in India
April 05 - Rel iance IndiaMobile introduces International Roaming faci l i ty to 172 countries, 300 networks
31
April 23 - Rel iance Infocomm introduces first ever auction facil i ty on Mobile phones through R World.
May 27 - Reliance Infocomm receives the Most Promising Service Provider of the Year 2003 (Asia Pacific) award at the Asia Pacific Technology Awards inst i tuted by Frost & Sullivan.
June 8 - Reliance Infocomm introduces World Card - a Prepaid International cal l ing card for affordable and convenient ISD calls from India.
July 29 - Announces India 's First MPLS Global VPN Solut ion in partnership with MCI
August 5 - Launches the first regional Customer Contact Centre in Chennai
September 6 - Mukesh D. Ambani, Chairman, Reliance Infocomm, receives Voice & Data 'Telecom Man of the Year ' award
September 9 - Introduces Railway Ticket booking from R World data applications suite of Reliance IndiaMobile
October 12 - Mukesh Ambani voted the world’s most infuential telecom person by UK-based publication Total Telecom.
October 19 - Reliance Infocomm bags the CDMA Development Group's 3G CDMA Industry Achievement Award for Internat ional Leadership.
2003
January 15 - Introduces Dhirubhai Ambani Pioneer Offer for Reliance IndiaMobile service
February 14 - Launches Reliance WebWorld in top 16 ci t ies
March 31 -Launches International Long Distance Services
April 3 - Commissions all backbone rings
April 25 - Introduces colour handsets
May 1 - Launches Reliance IndiaMobile Service commercially in top 92 ci t ies with one mill ion customers.
June 10 - Launches India 's f i rst wireless Point of Sale (POS)
July 1 - Introduces 'Monsoon Hungama' Offer: Instant multimedia mobile phone and connect ion for just Rs 501.
32
Sets world record - acquires one mill ion customers in 10 days
July 3 - Launches R Connect Internet connect ion cable
Aug 26 - Introduces Reliance IndiaPhone Fixed Wireless Phone and Terminal
September 20 - 'Navratri ' a data service in R-World posts a world record of 10 mill ion downloads on the fi rst day of the launch.
September 30 - R World clocks a phenomenal 1 bi l l ion hits in 1 month
October 6 - Launches integrated broadband centre at Rel iance WebWorld, Bangalore
October 24 - Deploys pi lot of Home Netway in Mumbai
October 30 - Reliance becomes India 's largest mobile service provider within 7 months of commercial launch
November 3 - Customer base touches 5 mil l ion
November 12 - Migrates to Unified License Regime
November 16 - Launches National Roaming
November 21 - Launches International SMS to 159 countries launched
December 19 - Adds 4500th Contact Centre Executive
Contact Centre becomes the largest such faci l i ty deployed by any single Indian Service Provider
2002
January 15 - First Base Transceiver Station (BTS) made 'Ready for Electronics'
February 25 -Obtains International Long Distance License from Govt. of India
December 22 - Commissions 1st Optic Fibre Backbone ring
December 24 - Establishes 1st Point of Interconnect (POI) in New Delhi
December 27 - Hon'ble Prime Minister of India, Atal Behari Vajpayee e-inaugurates Reliance Infocomm
Hon'ble Union Minister for Parliamentary Affairs, Information Technology and Communications, Pramod Mahajan, inaugurates NNOC
33
2001 -May 1- First Media Convergence Node made 'Ready for Electronics' at Jaipur
2000 -May 10 Optic fibre laying process commences in Gujarat, Andhra Pradesh & Maharashtra
1999- The Dream, 1999
'Make a phone call cheaper than a postcard and you will usher in a revolutionary transformation in the lives of millions of Indians' - Dhirubhai Ambani
The Reality, November 15 - Reliance Infocomm begins Project Planning
Achievements/ recognition:
First to launch BlackBerry 8830 World Edition Smartphone in India
Reliance Communications' Flag Telecom Awards U.S. Dollar 1.5 Billion (Rs 6000 Crore) Turnkey Contract To Construct Flag Next Generation Network Submarine Cable
Reliance BIG TV expands channel bouquet with 10 new channels
Reliance Communications clocks 11.3 million new subscribers in January - March
Reliance Communications adds a record 3.3 million wireless customers in February 2009
Reliance Communication launches 'Netconnect Broadband Plus' - India's fastest wireless Internet service
Reliance Communications adds a record 5 Million New Subscribers in January 2009
Reliance Mobile enhances value proposition for its GSM customers with Lifetime offer
Reliance Mobile launches GSM Services in Delhi
RCOM launches Unique Customer Experience Programme
RCOM first listed Indian telecom company to reward shareholders
Reliance Infocomm becomes India’s first telecom operator to launch seamless inter-standard international roaming service - 1World.1Number, with single number on international CDMA and GSM networks.
Reliance Infocomm introduces first ever auction facility on Mobile phones through R World.
34
Reliance Infocomm bags the CDMA Development Group's 3G CDMA Industry Achievement Award for International Leadership.
Introduces Railway Ticket booking from R World data applications suite of Reliance IndiaMobile
Reliance Infocomm receives the Most Promising Service Provider of the Year 2003 (Asia Pacific) award at the Asia Pacific Technology Awards instituted by Frost & Sullivan.
Reliance Infocomm introduces World Card - a Prepaid International calling card for affordable and convenient ISD calls from India.
Announces India's First MPLS Global VPN Solution in partnership with MCI
Launches India's first wireless Point of Sale (POS)
Competitors
CompanySales(Rs.Million)
CurrentPrice
Change (%)
P/E Ratio
MarketCap.(Rs.Million)
52-WeekHigh/Low
Bharti Airtel 340142.90 315.75 -1.28 13.38 1214420.02 495/230
Reliance Comm. 150866.60 176.60 -2.54 8.82 374001.67 359/131
Idea Cellular 98570.80 57.15 -1.80 15.41 180425.54 92/41
Tata Communications
37494.30 342.00 0.48 22.70 96999.75 651/336
Tata Teleservice 19416.80 26.60 -0.37 0.00 50655.16 42/19
MTNL 44559.99 74.15 -0.67 0.00 47029.50 124/59
Spice Comm 15804.77 62.40 -0.79 0.00 43396.28 95/26
35
GTL Infrastructure
2462.84 37.85 1.75 0.00 35388.31 50/28
Tulip Telecom 16082.83 942.00 0.33 9.67 27228.10 1250/258
HFCL Infotel 2235.71 6.07 -0.16 0.00 3722.54 15/5
IOL Netcom 371.26 27.30 -1.44 0.00 758.02 58/23
Southern Online Bio.
394.78 22.65 4.86 47.49 706.62 27/7
Dhanus Technology
1951.72 31.40 -1.41 7.74 571.47 46/12
HathwayBhawani Cable
123.84 13.59 3.35 44.20 105.20 19/5
Esskay Telecom 149.64 3.27 0.00 0.00 65.40 3/3
Integ. Digital Info19.50 3.35 2.45 0.00 48.98 5/2
Munoth Comm 0.06 4.00 -1.23 0.00 38.60 8/3
Vital Communication
0.32 0.82 1.23 0.00 30.76 2/1
36
RESEARCH METHOLOGY
RESEARCH METHODOLOGY
37
Research methodology forms an important par t of any research
projec t . I t i s a way to systemat ical ly solve the research problem. Two
considera t ions for research methodology under research report a re
(1) RESEARCH DESIGN.
(2) SECONDARY DATA .
Research Design
The funct ion of research design is to provide the col lec t ion of
relevant evidence wi th minimal expendi ture of effor ts , t ime & money.
The research design used here i s explora tory in nature, very f lexible &
judgmental in order to study the products and services provided by the
RELIANCE MONEY .
SECONDARY DATA:- I t was col lected through the Internet ,
Magazines, Newspapers and Corporate Profi le .
Data Collection Tools:
The main methodology used was “ Descript ive Design”, with i ts main
tools being the
Discussion Guidel ines
Quest ionnaire
Personal interviews
Sample Size:
38
I t could be very di ff icul t and t ime consuming to col lec t data from whole
populat ion, so accordingly the sample s ize of 150 has been taken
through careful design and analysis , for this study purpose.
I have used two types of research methodology for the survey, viz . ,
Literature Search
Literature Search involves var ious pr inted mater ials and websi te . In the
l i terature search I t r ied to f ind out what Reliance te lecom is offer ing to
i ts potent ia l customers.
In the l ive quest ionnaire survey I had met wi th walk-in customers,
Reta i lers, general publ ic , profess ionals and students .
The purpose for the quest ionnaire survey is to assess the customer
expectat ions from Reliance te lecom vis-à-vis market ing s trategy
implemented.
The quest ionnaire survey helps in unders tanding the l ive customers as
we general ly f ind tha t these survey are very nearly f i l l the purpose of
the project .
The data col lec ted here is of pr imary in nature. The various responses ,
which were col lec ted by visi t ing Rel iance WebWord off ices & on
various retai l out lets of Reliance te lecom at di fferent regions of
Al lahabad are accumulated. The researcher himself f i l led the form af ter
asking the quest ions from the quest ionnaire in ei ther st ructured or
unst ructured way wi thout indulging in to te l l ing the respondents that he
is f rom Rel iance so that the responses should be free from biases .
39
I have visi ted to 45 retai l out lets and 2 web world off ices where the
customers walk-in and interviewed 1500 respondents . These
respondents are basical ly very much aware about the services being
offered by the Reliance telecom and mostly are aware about the
PREPAID services.
I have interviewed 550 respondents on the same quest ionnaire from
various st reet of the society those who normally having mobi le se ts or
are wil l ing to buy one belonging to the lower income group, l ike
students , smal l businessmen, mi lkman, , small t raders , Teashop owners,
Mesons, housewives , landl ine owners etc .
On the very basis of the interviewing respondents a t var ious points of
purchases and local i t ies of Allahabad based on the quest ionnaire data
are col lec ted and analysis is done.
I have divided the data according to the quest ions in three ca tegories: -
Walk-in respondents of Rel iance web world off ices
Walk-ins respondents in Rel iance Reta i l Outlets
Common Marketers
I have calculated in the form of %age of responses rece ived from each
respondents and accordingly bar chart is made for the easy
class if icat ions and f indings to come to cer ta in conclusions.
PREPAID MARKET SEGMENTS
40
Most prepaid users are cost conscious .
Flexibi l i ty Seekers
Low Budget users
Credit Challenged Users
Temporary Users
Factors tha t a t t ract these segments
The ease of entry
The recharge voucher f lexibi l i ty
Prepaid- gives control and convenience
41
Pay the money upfront through recharge vouchers and get cer tain f ixed
talk t ime and data usage for a given period. As we use, charges get
deducted –online, real t ime.
Self service to ensure that a l l customers needs are jus t a few buttons
away.
PREPAID OPERATION ORGANISATION
Prepaid sales and dis tr ibut ion
IN Opera t ions and Maintenance
Prepaid Revenue Operat ions
Prepaid Contact Central Desk
SUPPORT GROUP
42
Product Management
Centra l Logist ics
Commercia l
Procurement
IN OPERATIONS & MAINTENNACE
43
TECHNICAL SUPPORT FROM THREE GROUPS
-EWC (Engineering and Planning)
-NNOC (24 X 7 Monitor ing and Maintenance)
-ITC (All Upgrades and New Developments)
PREPAID REVENUE OPERATIONS44
Consists of three groups
-Recharge card operat ions: recharge cards product ion and supply chain
management
-IN tar if f operat ion: a l l tar i f f plan configurat ions, ta r i f f table
maintenance and tes t ing
-Resolut ion desk: c losing various t rouble t ickets rela ted to cal l charges ,
recharge credi ts and prepaid account problems.
PREPAID CONTACT CENTER
45
- 24 X 7 contac t center support for prepaid
- Wil l handle al l cal ls specif ic to prepaid (bi l l ing, data ,
network and handset )
- Mul t i l ingual
- Local support through FSD
MARKETING MIX
46
The idea of market ing mix was f i rs t conceived by Prof . Nei l H. Bordon
of Harvard Business School , according to him “the market ing mix refers
to the apport ionment of effor ts , the combinat ion, the designing and the
integrat ion of the elements of the market ing into a program or mix
which on the basis of an appraisa l of the marketing force wi l l bes t
achieve the objec t ives of an enterprise a t a given t ime.”
The market ing mix is a very important concept in present market ing
environment .
McCarthy has popular ized a four-factor classi f ica t ion of these tools
cal led
FOUR Ps:
Product , place, pr ice and promotion.
There are various types of tools within these four Ps.
47
Product : Variety, Quali ty , Design, Features, Brand name, Packaging,
Sizes , Services , Warrant ies , Returns .
Price: List pr ice, Discounts, Allowances , Payments, and Credit Terms
Place: Channel , Coverage, Assortments, Locat ion, Inventory, Transport
Promotion : Sales Promotion, Advert is ing, Sales Force, Public Relat ion,
Direct
MARKETING MIX STRATEGY
48
Promotion Mix Offer Mix
Reliance has planned in market ing mix in such a way tha t Product ,
place, pr ice and promot ion compliments each other . The product i s
49
CompanyProductServicesPrices
Advertising Sales Promotion Sales Force Public RelationDirect Marketing
Distribution Channel
TargetCustomer
targeted to the middle and lower income group segment , the pr ice is
kept to sui t to the pockets of lower income group of the middle class
segment , whi le the sa les promot ion schemes are launched to induce f i rs t
t r ia l . The main thrust area is that i t should be avai lable a t the maximum
reta i l out lets .
RIM brand has been s trategical ly launched al l over country and has
been accepted by i t s target customers very successful ly .
50
THE BUYING DECISION PROCESS
We have to go beyond the var ious inf luences on buyers and develop an
unders tanding of how customers actual ly make their buying decis ions so
we must ident ify who makes the buying decisions, the type of buying
decisions and the s teps in buying decision.
For many a product i t is very easy to ident ify the buyer but in case of
mobile phone set and the kind of services required from various GSM
and WILL services avai lable there involved a decision making unit
consis t ing of more than one person.
We can f ind f ive roles people might play in a buying decis ion:
Ini t ia tor : a person who f irs t suggests the idea of buying the par t icular
product or services .
Inf luencer: a person whose views or advice carr ies some weight in
making the f inal decis ion.
Decider: person who decides on any components of a buying decision,
whether to buy, how to buy, where to buy, what to buy.
Buyer: the person who makes the ac tual purchase.
User : person who consumes or uses the product or services .
51
Reliance Infocomm needs to ident ify these roles because they have
impl ica t ions for designing the product , determining the message, and
al locat ing the promotional budget . Knowing the main part ic ipant and
thei r roles helps Rel iance f ine tune i t s market ing program.
Types of Buying Behavior
Consumer decis ion making varies with the type of buying decis ion.
Complex and expensive purchases are l ikely to involve more buyer
del iberat ions and more par t ic ipants .
There are mainly four type of buying behavior viz .
52
1-Complex Buying Behavior:
When the consumer i s highly involved in a purchase decision and is
signif icant ly aware about the di fferences among the brands. This type
of behavior is most ly seen when the product is expensive and bought
infrequently, r isky and highly self-expressive. Buyer learns about the
product and then thoughtful purchase is made.
The marketer has to develop the s tra tegies that ass is t the buyer in
learning about the at t r ibutes about the product c lass and thei r rela t ive
importance .
2-Dissonance Reducing Buying Behaviors:
In this case the buyer i s highly involved and sees l i t t le differences
among the brand avai lable , buyer wil l shop around to learn what i s
avai lable but purchase is quick because brand difference is not
pronounced. Here the market ing communicat ion should aim to supply
bel iefs and evaluat ions that help the consumer feel good about his or
her brand choice.
53
3- Habitual Buying Behavior:
Many products are bought because of low consumer involvement and
the absence of s ignif icant brand differences , i .e . , the brand is bought
because of habit not because of brand loyal ty, and such are inexpensive
products and frequently purchased products . The consumer behavior in
such cases does not pass through the normal be l iefs/at t i tude/convic t ion
sequence. The consumer buys the product because they are famil iar with
the brand and not because they form st rong at t i tude towards the
product . In such case the marketer should use the sales promotion as an
incentive to product t r ia l and the repeat advert i sements in te levis ion
and pr int media.
54
4-Variety Seeking Buying Behavior:
Some buying s i tuat ions are character ized by low consumer involvement
but s ignif icant brand differences . Here consumers are of ten observed to
do lot of brand switching which occurs for the sake of var iety rather
than dissat isfact ion. In this case the market ing st rategy for the market
leader and the chal lenger wil l be di fferent . The market leader wil l t ry
for the habitua l buying by frequent reminder of the advert isements and
the chal lenger wil l offer var ious schemes and encourage trying some
thing new.
55
Stages in Buying Decision
Consumer pass through f ive stages in buying a product:
Problem recognit ion
Informat ion search
Evaluat ion of al ternat ives
Purchase decision
Post purchase decision
56
Need Recognition
InformationSearch
Evaluation of Alternatives
Purchase Decision
Post Purch-ase Decision
Five- Stage Model of the Buying Process
Need recognition:
The buying process star ts when the buyer recognizes a problem or need.
The need can be t r iggered by the external and internal st imul i . The
marketer needs to ident ify the circumstances tha t t r igger a par t icular
need. By gathering information from the no. of customer the marketer
can identi fy the most f requent s t imuli that spark an interes t in a product
category and formulate st rategies that t r igger the interes t .
Information Search:
An aroused customer wil l be incl ined to search for more information
from various sources ,viz . , personal sources , commercial sources,
public sources , experimenta l sources .
The rela t ive amount and inf luence of these information sources var ies
wi th the product category and with the buyer character ist ics . Through
gathering informat ion the customer learns about competing brands and
thei r features. The marketer should ident i fy and evaluate the importance
of each source .
57
Evaluation of Alternatives:
There is no simple and single evaluat ion process tha t is used by al l
consumers and or even by one consumer in al l buying s i tua t ions .
Product judgment i s largely on conscious and ra t ional basis . Consumer
sees each product as bundle of a t t r ibutes with varying capabil i t ies of
del iver ing the sought benefi t s and sat isfying this need. The marketer
can segment the market according to the at t r ibutes that a re relevant
to different consumers.
The consumer is l ikely to develop a set of brand bel iefs about where
each brand stands on each a t t r ibute . The brand bel iefs make up the
brand image. The marketer could redesign the product , a l te r bel iefs
about the brand, a l ter be l iefs about the competi tor brand, cal l a t tent ion
to neglected at t r ibutes or shif t the buyer’s ideals .
58
Purchase Decision:
In the evaluat ion stage the consumer forms preferences among the
brands in the choice se t . The consumer may also form the purchase
intent ion to buy the most preferred brand.
A consumer decision to modify, postpones or avoid a purchase decision
heavi ly inf luenced by perceived r isk. A consumer who decides to
execute a purchase.
intent ion wil l be making up to f ive sub decis ions viz .Brand decis ion,
Vendor decis ion, Quant i ty decision, Timing decis ion, payment method
decision.
59
Post Purchase Decision :
What def ines tha t the buyer i s sat isf ied or not! The buyer sat isfact ion is
a funct ion of the closeness between the buyer’s product expectat ions
and the product’s perce ived performances. I f the product performances
fal l s short of the customer expectat ions the customer is disappointed , i f
i t meets the expectat ions the customer is sat i sf ied, i f i t exceeds the
performances the customer is del ighted. These fee l ings decides whether
the customer wil l buy the product again or not and talk favorably or not
to others.
Identifying the Market Segment:
Whenever the market for a product or service consis ts of two or more
buyers the Market is capable of being segmented i .e . divided into
meaningful buyer groups. The purpose is to determine differences
among buyers, which may be consequentia l in choosing away them or
market ing to them. The customers are too numerous, var ied, and
dispersed in their buying behavior and requirements . The company
ins tead of compet i t ive everywhere, of ten against superior odds, needs
to ident ify the most a t t rac t ive market segments that i t can serve
effec t ively.
The market consists of buyers and buyers differ in one or more
respects.
60
Major segmentation variables for mobile market
Geographic
Region
State Size
City Size
Densi ty
Climate
Demographic
Age
Sex
Family Size
Income
Family Life Cycle
Occupat ion
Education
Psychographic
Social Class
Lifestyle
Behavioral
61
Occasions
Benefi ts
User Sta tus
Usage Rates
Loyal ty Status
Readiness Stage
Atti tude towards product
Selecting the Market Segments
After evaluat ing different market segments the company hopes to f ind
one or more market segments worth enter ing. The company must
decide which and how many segments to serve . There are f ive pat terns
of se lec t ing the target market .
Single Segment Select ion
Selec t ive Special iza t ion
Product Special izat ion
Market Special izat ion
Full Market Coverage
Determinants of Customer Added Value
After analyzing the market segments and the company s tra tegies for
se lec t ing the market segment we need to analyze the values of ITC
brand John Players that play an effect ive role on how the customer
perce ives the brand.
62
PRODUCT VALUE
IMPLEMENTATION OF MARKETING STRATEGY
63
SERVICE VALUE
PERSONAL VALUE
MONETARY VALUE
TIME COST
ENERGY COST
PSYCHIC COST
TOTAL CUSTOMER VALUE
TOTAL CUSTOMER PRICE
TOTAL DELIVERED VALUE
Reliance Prepaid Branding
Brand to be cal led RIM Prepaid
Rationale : a short t rendier name
Imagery: young, t rendy and inspirat ional , but would ref lect the
confidence to emotional ly connect wi th the consumer.
RIM Prepaid Brand Posit ioning
Brand is posi t ioned on the Confidence plat form.
Appeals to a l l consumers segments
Unique in the category
RIM prepaid to own this- both at a Rational and Emot ional level .
Confidence is a relevant category proposition
The brand proposition
Much l ike my confidence in my own capabil i t ies, I have confidence only
in RIM Prepaid to offer me the best va lue and to del iver what i t
promises . This proposi t ion is supported by product offer ings
Handsets , Best cal l ra tes , Maximum card val idi ty
RIM Prepaid Launch Plan
64
1. Retail Visibility
Shop Signage’s
Dist inct ive looks,
6-L square feet s ignage is provided to retai lers
Display Contests are run among re tai lers
2. Mass Media
TV
Press
Outdoor
Radio FM
Cinema
3. Below –the – line activities
Road shows, kiosks , joint promotion
Dist r ibutor launch events
4. Co-branded campaign with Motorola
Posters
Buntings
Flex wall hangers
Role of various communication media
65
TV – Primari ly brand bui lding, plus a bi t of va lue proposi t ion
Press – Primari ly value proposi t ion
Radio - Value Proposi t ion
Outdoors – Brand Building and Value Proposi t ion
Collateral – Brand Building Posters , Buntings , Danglers , Backing
Sheet , Shel f St r ips , Leaflet Dispersers , Sun Boards , Cut outs
Collaterals – Value Proposi t ion Brochures , Posters , Buntings , Tent
Cards
Signage – Brand Sal ience
ADVANTAGES OF PREPAID
66
WIN –WIN FOR CUSTOMERS
LOW MONTHLY SPEND
NO DEPOSITS
CONTROL ON COSTS
FLEXIBILITY
WIN –WIN FOR OPERATORS
LOWER SERVICE COST PER SUBSCRIBER – NO COST OF
BILLING & COLLECTION
CASH UP-FRONT - NO BAD DEBTS
SATISFIED CUSTOMERS
WIN –WIN FOR CHANNEL PARTNERS
CONTINUOUS REVENUE GENERATOR
LOW INVESTMNET IN SPACE / LOGISTICS
LOW SELLING EFFORT – A MARKET PULL PRODUCT
SELLING EFFORT ONLY FOR ACQUISITION –RECHARGE
CARDS SALES A BY PRODUCT
THE RESEARCH PROCESS:-
67
Conceptualization
DATA68
Identification of the problem
Extensive Literary Search
Working Hypothesis
Research Design
Sample Design
Data Collection
Analysis of the Data
Findings & Conclusions
Documentation
PREPARATION
69
INTERPRETATION OF DATA ON THE BASIS OF
THE QUESSIONAIRE AND LOCATIONS
Question no. –1- ARE YOU A CELL PHONE USER?
Location Yes NoWeb world offices 90% 10%Retailers 69% 31%Common Marketers 46% 54%
(nearest %age)
70
Question –2-WHICH SERVICE PROVIDER DO YOU USE?
Location Reliance Hutch BSNLWeb world offices 33% 46% 31%Retailers 16% 40% 44%Common Marketers 20% 55% 25%
(Nearest %age)
71
UESTION NO-3-ARE YOU SATISFIED WITH THE EXISTING SERVICE PROVIDERS?
Location Excellent Very good Good Satisfactory UnsatisfactoryWebworld 0% 10% 33% 30% 27%Retailers 0% 10% 15% 20% 55%Common Marketers
0% 5% 45% 25% 25%
(Nearest %age)
72
Question no.-4- DO YOU WANT TO CHANGE FROM EXISTING SERVICE PROVIDER?
Location Yes No Can not sayWeb world offices 10% 85% 5%Retailers 60% 30% 10%Common Marketers 25% 30% 45%
(Nearest %age)
Question no.-5- ARE YOU USING PRE-PAID OR POST-POST?
73
Location Postpaid PrepaidWeb world offices 85% 15%Retailers 40% 60%Common Marketers 40% 60%
(Nearest %age)
Question no.-6- ARE YOU INTERESTED IN OPTING FOR PREPAID?
74
Location Yes No Yet to decideWeb world offices 60% 30% 10%Retailers 70% 20% 10%Common Marketers 40% 30% 30%
(Nearest %age)
75
Question no.- 7-ARE YOU INTERESTED IN OPTING FOR RELIANCE PREPAID?
Location Yes WANT MORE INFOTMATIONWeb world offices 80% 20%Retailers 90% 10%Common Marketers 50% 50%
(Nearest %age)
76
Question no.-8- WHY DO YOU WANT TO OPT FOR THE PREPAID?
Location Easy Affordabilityavailability
Ease of entry
Web world offices 50% 30% 20%Retailers 90% 10% 0%Common Marketers 60% 30% 10%
(Nearest %age)
77
Question no.-9-WHAT ARE YOUR CALL CHARGES PREFERENCES?Reliance: Rs.1.00 per minHutch: Rs.2.49 per min.BSNL: Rs.2.40 per min.
ALL RESPONDENTS HAVE SAID TO PREFER RELIANCE CALL CHARGES.
78
Question no.10-DO YOU PREFER THE R-WORLD SERVICES OFFERED BY RELIANCE?
Location Excellent Important Not requiredWeb world offices 60% 20% 20%Retailers 50% 25% 25%Common Marketers 40% 30% 30%
(Nearest %age)
79
Question no.11-WHAT YOUR EXPECTATIONS FROM THE RELIANCE PREPAID SERVICES?
Location Low Tariff Affordability Roaming HandsetWebworld 80% 10% 5% 5%Retailers 85% 15% 0% 0%Common Marketers
60% 20% 10% 10%
(Nearest %age)
Our new marketing focus, made explicit in this plan, renews our vision and strategic
focus on adding value to our target market segments, the small business and high-end
home office users, in our local market.
American Technology will change its focus to differentiate itself from box pushers and
improve the business by filling the real need of small business and high-end home office
80
for reliable information technology including hardware, software, and all related services.
Our marketing challenge is to position our product and service offerings as the high-
quality, high value-add alternative to box pushing in a vacuum.
Product 1997
GEN $1,372,500
Systems $3,293,500
Service $380,000
Software $799,250
Training $113,000
81
Totals $5,958,250
1.1 Vision
AMT is built on the assumption that the management of information technology for
business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in
that it is not inherently a do-it-yourself prospect. Smart business people who aren't
computer hobbyists need to find quality venof reliable hardware, software, service, and
support. They need to use these quality vendors as they use their other professional
service suppliers, as trusted allies.
AMT is such a vendor. It serves its clients as a trusted ally, providing them with the
loyalty of a business partner and the economics of an outside vendor. We make sure that
our clients have what they need to run their businesses as well as possible, with
maximum efficiency and reliability. Many of our information applications are mission
critical, so we give our clients the assurance that we will be there when they need us.
1.2 Objectives
1. Increase sales by 20%
82
2. Increase gross margin to more than 25%.
3. Increase our non hardware sales to 65% of the total.
2.0 Target Markets
AMT focuses on small business in the local market, with special focus on the high-end
home office and the 520unit small business office.
Market 1997 1998 1999 2000 2001 Total
Home
Office
$25,000,0
00
$27,500,0
00
$30,250,0
00
$33,275,0
00
$36,602,5
00
$152,627,5
00
Small
Busine
ss
$50,000,0
00
$52,500,0
00
$55,125,0
00
$57,881,2
50
$60,775,3
13
$276,281,5
63
Totals $75,000,0
00
$80,000,0
00
$85,375,0
00
$91,156,2
50
$97,377,8
13
$428,909,0
63
2.1 Market Definition and Segmentation
We have broken our markets into groups according to standard classifications used by
market research companies: home offices and small business.
Exact definitions of these market segments is not necessary for our marketing planning
purposes here; general definitions will suffice. We know our home office customers tend
83
to be heavy users, wanting high-end systems, people who like computing and computers.
The low-end home office people buy elsewhere. We also know that our small business
customers tend to be much less proficient on computers, much more likely to need and
want handholding, and much more likely to pay for it.
2.2 Target Market Segment Strategy
We cannot survive just waiting for the customer to come to us. Instead, we must get
better at focusing on the specific market segments whose needs match our offerings.
Focus on targeted segments is the key to our future.
Therefore, we need to focus our marketing message and our product offerings. We need
to develop our message, communicate it, and make good on it.
2.3 Target Market: Home Office
The home offices in Tin town are an important, growing market segment. Nationally,
there are approximately 30 million home offices, and the number is growing at 10% per
year. Our estimate in this plan for the home offices in our market service area is based on
an analysis published four months ago in the local newspaper.
84
Home offices include several types. For our plan, the most important are the home offices
that serve as the only offices of professional firms. These are likely to be professional
services such as graphic artists, writers, and consultants, also some accountants and the
occasional lawyer, doctor, or dentist. There are also individuals who maintain home
offices for part-time use, including "moonlighters" and hobbyists. This segment is not
who AMT wishes to sell to; our marketing focus consists of professionals and
entrepreneurs who maintain a full-time office. In this plan, we will refer to customers in
the home office segment as HOs.
2.3.1 Needs and Requirements
Our target HOs are on average as dependent on reliable information technology as any
other businesses. They care more about reliable service and confidence than about the
rock-bottom lowest price. They don't want to rely solely on their own expertise, so they
choose instead to deal with us with our promise of service and support when needed.
Our standard HOs will be one system installations, no networks, much more powerful
systems than the average small business. Fax modems, voicemail, and good printers are
likely. They tend to be interested in desktop publishing, accounting, Internet, and
administration software as well as their job specific software needs.
It's important that we realize we won't be selling to the price oriented HO buyers. We'll
be able to offer an attractive proposition to the service oriented and security oriented
buyers only.
2.3.2 Distribution Channels
Unfortunately our HO target buyers may not expect to buy with us. Many of them turn
immediately to the superstores (office equipment, office supplies, and electronics) and
mail order to look for the best price, without realizing that there is an option that provides
greater value for dollars.
85
2.3.3 Competitive Forces
Our focus group sessions indicated that our target HOs consider price but they would buy
on quality service if the offering were positioned correctly. Price is the message they're
exposed to again and again; they have been trained to shop on price. We have very good
indications that may would much rather pay 1020% more for a relationship with a long-
term vendor providing backup and quality service and support; they end up in the box
pusher channels because they aren't aware of the alternatives.
Availability is also very important. The HO buyers tend to want immediate solutions to
problems. Consequently, they can be subjected to high-pressure, under-trained
salespeople who may not be able to factor in all of a customer's needs.
2.3.4 Communications
One of the best places to reach the target HO is the local newspaper. Unfortunately, that
medium is saturated with pure price only messages, and we'll have to make sure that our
message is accurately stated.
Radio is potentially a good opportunity. Our HO target buyers listen to local news, talk
shows, and sports. Sponsoring a technology discussion/callin talk show is a possibility.
Seminars are a tough sell. The target HO buyer rarely has time for seminars. They think
most seminars are low content sales pitches, and many times they are correct. The
challenge here is to communicate how our information adds value to their enterprise
while selling our organization in a subtle, indirect fashion.
2.3.5 Keys to Success
The main key to success with HO buyers is making the product and marketing
positioning clear. Many potential buyers would much prefer our offering to the box only
offerings of the chain stores and mail order sources, if only they possessed adequate
information to conduct a value-add cost/benefit analysis.
86
Word of mouth is critical in this segment. We will have to make sure that once we gain a
customer, we never lose them. To help accomplish this, we must work to reinvigorate
relationships through successful database marketing, among other means.
We must always remember to sell the company, not the product. They have to understand
they are taking on a relationship with AMT, not just buying boxes. Boxes they can get
cheaper elsewhere.
2.4 Target Market: Small Business
Small business in our market includes virtually any business with a retail, office,
professional, or industrial location outside of someone's home, and fewer than 30
employees. We estimate 45,000 such businesses in our market area.
The 30employee cutoff is arbitrary. We find that the larger companies turn to other
vendors, but we can sell to departments in larger companies, and we shouldn't be giving
up leads when we get them.
2.4.1 Needs and Requirements
Our target SBs are very dependent on reliable information technology. They use the
computers for a complete range of functions beginning with the core administration
information such as accounting, shipping, and inventory. They also use them for
communications within the business and outside of the business, and for personal
productivity. They are not, however, large enough to have dedicated computer personnel
such as the MIS departments in large businesses. Ideally, they come to us for a long-term
alliance, looking to us for reliable service and support to substitute for their in-house
people.
These are not businesses that want to shop for rock-bottom price through chain stores or
mail order. They want to be sure they have reliable providers of expertise.
87
Our standard SBs will be 520 unit installations, critically dependent on local area
networks. Backup, training, installation, and ongoing support are very important.They
require database and administrative software as the core of their systems.
2.4.2 Distribution Channels
The SB buyers are accustomed to buying from vendors who visit their offices. They
expect the copy machine vendor, office products vendors, and office furniture vendors, as
well as the local graphic artist, freelance writer, or whoever, to come visit their office to
make their sales.
There is usually a lot of leakage in adhoc purchasing through local chain stores and mail
order. Often the administrators try to discourage this, but are only partially successful.
2.4.3 Competitive Forces
The SB buyers understand the concept of service and support, and are much more likely
to pay for it when the offering is clearly stated.
There is no doubt that we compete much more against all the box pushers than against
other service providers. We need to effectively compete against the idea that business
should buy computers, the heart of their business, as plug-in appliances, that don't need
ongoing service, support, and training.
2.4.4 Communications
One of the best places to reach the target SB is the local newspaper. Unfortunately, that
medium is saturated with pure price only messages, and we'll have to make sure that our
message is excellently stated.
Radio is potentially a good opportunity. Our SB target buyers listen to local news, talk
shows, and sports. Sponsoring a technology discussion/call-in talk show is a possibility.
Seminars are a good marketing opportunity with SBs. Employees are often happy to
leave their normal routines for a day to learn something new.
88
2.4.5 Keys to Success
The main key to success is making the product positioning clear. Many potential buyers
would much prefer our offering to the box only offerings of the chain stores and mail
order sources, if only they knew the tradeoffs.
Word of mouth is critical in this segment. We will have to make sure that once we gain a
customer, we never lose them.
We must always remember to sell the company, not the product. They have to understand
they are taking on a relationship with AMT, not just buying boxes. Boxes they can get
cheaper elsewhere.
3.0 Marketing Plan Strategy
AMT will change its focus to differentiate itself from box pushers and improve the
business by filling the real need of small business and high-end home office for reliable
information technology including hardware, software, and all related services.
3.1 Emphasize Service and Support
We must differentiate ourselves from the box pushers. We need to establish our business
offering as a clear and viable alternative, for our target market, to the price only kind of
buying.
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3.2 Emphasize Relationships
We need to focus our offerings on small business as the key market segment we should
own. This means the 520unit system, tied together in a local area network, in a company
with 550 employees. Our values training, installation, service, support, knowledge are
more cleanly differentiated in this segment.
As a correlary, the high end of the home office market is also appropriate. We do not
want to compete for the buyers who go to the chain stores or mail order, but we definitely
want to be able to sell individual systems to the smart HO buyers who want a reliable full
service vendor.
90
4.0 Expense Budget Summary
The following marketing budget comes to a total of less than $450K. This is actually a
decrease over the $485K we spent this year on the marketing budget. We believe we can
get more effective marketing with less money, because we are managing the marketing
better with the Marketing Plus software by Palo Alto Software.
91
Type 1997
Ads $285,000
Catalog $25,000
Mailing $113,300
Promo $16,000
Shows $20,200
Literature $7,000
PR $1,000
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Seminar $31,000
Training $60,000
Service $10,250
Totals $568,750
4.1 Expense Budget by Manager
Budget by Manager: As the following table and chart show, the largest budget piece is
the $151K (almost entirely advertising budget) managed by Ralph.
Manager 1997
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Ralph $286,000
Casey $65,700
Leslie $75,000
Sonny $111,050
Jan $31,000
Totals $568,750
4.2 Expense Budget by Markets
Most of our budget falls into the general category that applies to both target markets. This
is because much of the spending is impossible to divide into specific market categories.
Of the portion of the budget that is specific, by far the largest share falls into the small
business market, because this tends to lead the market.
94
Markets 1997
GEN $414,200
SB $118,550
HO $36,000
Totals $568,750
4.3 Expense Budget by Type
Budget by type: The largest single expenditure program is advertising, at $150K This is
actually $30K less than we will have spent this year. The second largest is mailing, which
is a priority because of its importance to our database marketing strategy.
95
Type 1997
Ads $285,000
Catalog $25,000
Mailing $113,300
Promo $16,000
Shows $20,200
Literature $7,000
PR $1,000
96
Seminar $31,000
Service $10,250
Training $60,000
Totals $568,750
4.4 Expense Budget by Product
Budget by product: The nonspecific product spendings amount to the largest total, $235K
of the total $423K. The least is the training spending, at only $26K. The nonspecific
spending on product makes sense, because it is related to general training and
development of our business expertise.
97
Product 1997
GEN $371,200
Systems $90,000
Service $59,750
Software $22,000
Training $25,800
Totals $568,750
5.0 Sales Forecast
The $6 million sales forecast is shown in detail in the tables and charts to follow. This
represents a 20% increase over the present year. We believe it is a conservative forecast,
and we are sure we can make our numbers this year as a result of more effective
marketing.
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Type 1997
Ads $1,372,500
Shows $82,500
Service $0
Mailing $427,750
Sales $3,693,000
Seminar $272,500
Promo $100,000
99
Catalog $10,000
Totals $5,958,250
5.1 Sales Forecast by Manager
Sales by Manager: As might be expected, Leslie has by far the largest sales quota to
manage. This is suited to our strategy of putting Leslie in charge of the sales force, and
tracking sales through the sales force. Details follow.
Manager 1997
Ralph $1,372,500
Leslie $4,100,750
Sonny $110,000
100
Jan $272,500
Casey $102,500
Totals $5,958,250
5.2 Sales Forecast by Markets
Sales by market: Our most important market, by far, is the small business market. The
sales forecast shown in the following table and chart is a superb reminder of why we need
to focus on the specific target markets.
Markets 1997
GEN $2,543,000
101
SB $3,133,750
HO $281,500
Totals $5,958,250
5.3 Sales Forecast by Type
The data shows that we are still unable to attribute our sales in any significant way to our
sales and marketing program. The "Sales" type shown here is the general sales coming in
that is not tied to a specific type of program. This is obviously by far the largest portion
of our projected sales. Advertising comes second. This doesn't indicate a problem with
the plan or our implementation; it is just a fact of life. Much of our marketing activity
generates sales in ways that don't allow us the luxury of tying it back directly to a specific
program.
Type 1997
102
Ads $1,372,500
Mailing $427,750
Promo $100,000
Sales $3,693,000
Seminar $272,500
Shows $82,500
Service $0
Catalog $10,000
Totals $5,958,250
5.4 Sales Forecast by Product
Sales by Product: The $6 million sales forecast is shown in the following table and chart.
As always, our largest single sales item is the sales of systems. The next largest item is
the general, non-specific sales, which of course will also be mostly systems. The details
follow.
103
Product 1997
GEN $1,372,500
Systems $3,293,500
Service $380,000
Software $799,250
Training $113,000
Totals $5,958,250
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6.0 Measurement and Comparison
Overall, we plan to spend 7.28% of sales on sales and marketing expenses, which seems
about in line for our plan, and for our industry. That breaks down to 3.78% of sales for
home offices, 12.79% for small business, and 10.98% for expenses not tied to either one.
As broken down by products, we spend about 3% of sales on software and systems, and
16% on service and 23% on training. This breakdown makes sense for our marketing,
because of the impact on software and systems of better training and better service.
7.0 Marketing Organization
AMT is still a small company, despite our recent growth.
Ralph, President, is responsible for general management. He specifically manages the
advertising budget, but otherwise is responsible for sales and marketing as the head of the
organization.
Leslie, our sales manager, is responsible for managing the in-house and the outbound
sales forces. We have also put the mailing programs under Leslie, because they must be
carefully coordinated with the follow-up of the sales force.
Casey, our marketing manager, is responsible for marketing programs including sales
literature, trade shows, the catalog, etc.
Jan, who reports to Casey, will take the key role in the seminar marketing programs.
Sonny, who manages service, will also manage the marketing programs related to
service.
8.0 Critical Issues
1. Tracking and follow-up: will we have the discipline, as an organization, to track results
of the marketing plan and make sure that we implement?
105
2. Market segment focus: how can we be sure we have the discipline to maintain the
focus?
3. Saying no: can we say no to special deals that take us away from the target focus? Can
we say no to unprofitable deals?
FINDINGS106
Before the launch of the prepaid the market share of Rel iance Infocomm
is 30%.Out of the total respondent 73% have sa id to go for the prepaid
connect ion. This means tha t After the launch of the prepaid the market
share of the Reliance Infocomm has increased to 40% of the total
mobile users .
As expected, other mobi le companies Air tel and TATA Telecom have
launched their services in U.P.East , Rel iance plan to consolidate the
prepaid services with cer tain commitments f rom the customers wil l help
reta in the market share and overcome the competi t ion.
107
Also i t is observed that out of total respondents 54% are unsat isf ied
wi th thei r present service providers and 32% of the total respondents
are interes ted in changing to di fferent service providers.
I t is observed that Hutch has 47% market share and BSNL has 33%
market share while Reliance has 30% market share . As mentioned 32%
customers want to swi tch to other service providers , total ga in would be
to Rel iance in this case.
Out of tota l respondents, 83% are using post paid and out of this 56%,
are interes ted in opt ing for the prepaid connect ions.
I t is observed that total respondents who were shown interes ts in opt ing
for prepaid 73% said to be interested in Rel iance services.
108
Interest ingly 67% respondents found to be aware about the Reliance
prepaid services and most ly seen the TV Advert i sements and SMS
message received from the Reliance.
67% respondents are interested for prepaid only because of i ts easy
avai labi l i ty and 24% said to be interested because of affordabi l i ty whi le
10% preferred because of easy entry.
We can draw that the consumer prefer to buy the Prepaid card from the
nearest buying point as they correct ly feel that they may require to buy
recharge coupons on odd t imes as wel l .Also i t i s diff icul t to buy
Prepaid Card from BSNL as they are not easi ly avai lable .
Also the customers found to be pr ice sensi t ive as they said that the
Reliance Prepaid are more affordable while easy ent ry, that i s , the
ini t ia l investment i s a lso very low in case of Reliance Prepaid card
connect ion.100% respondents said to prefer Rel iance ca l l charges, so
the market is very much price sensi t ive, a l though they value the
Reliance services at the level of sat i sfact ion.
Most of the respondents have sa id tha t they want low tar i f f rates f rom
Reliance and they want to keep the services a t the low costs .The
product i s found to be sat i sfac tor i ly among the respondents while the
pr ices are such to keep the low segment of the society and the f i rs t t ime
users interested to buy i t .Rel iance has used i ts experience and Brand
ident i ty to bui ld wide dis tr ibut ion network through retai lers base.
109
As far as the Brand Promot ion are concerned Reliance has deployed i ts
resources to al l kind of promotion tools to reach the masses.
110
RECOMMANDATION
AND
SUGGESSTION
111
SUGGESTIONS
1- Reliance Infocomm should focus in to opening of more retai l
out le ts in the remote and outskir ts a reas of the c i ty , as f i rst ly consumer
prefer to buy from the neares t out lets , secondly, most of the low
segment markets are also res iding there .
2- Reliance Infocomm should consider in providing bet ter handsets
at the low rates as other GSM handsets are avai lable at much lower
rates, a lso the second hand market for GSM handsets are widely
avai lable at the much lower rates.
3- Reliance Infocomm should t ry to improve the ir Brand Equi ty
among the masses of the c i ty by rendering proper customer services .
4- Market ing communicat ion should aim to supply bel iefs and
evaluat ions that help the consumer feel good about his or her brand
choice.
112
CONCLUSION
113
CONCLUSION
1. Consumer inclination towards BSNL.
2. Call Rate play an important role in choosing tele-
service.
3. Quality of service rendered occupy momentous place in
consumers choice for te le-service.
4. Mostly student (School & College going student) prefer
the prepaid connection & Business group prefer the
postpaid.
5. Most of Mobile users are interested to go for the
services to be rendered by Rim.
6. Majority of the customer is not sat isfied with the
services of rel iance GSM rendered presently.
114
BIBLIOGRAPHY
115
REFERENCE
MARKETING MANAGEMENT : Phil ip Kotler
MARKETING MANAGEMENT : Rajan Saxena
RELIANCE INFOCMM LTD. WBESITE
RELIANCE IFOCOMM LTD. INTERNAL RECORDS
www.reliance.com
www.bseindia .com
www.yahoofinance.com
www.reliancecapital.com
www.reliancelife.com
116
QUESTIONNAIRE
NAME : - - --------------------------------------------------------
AGE : - - --------------------------------------------------------
SEX : - ---------------------------------
OCCUPATION: --------------------------------------------------------------
DESIGNATION: ------------------------------------------------------------
ADDRESS : - -------------------------------------------------------------
TEL. NO.:-----------------------------------------------------------------------
1- ARE YOU A CELL PHONE USER?
YES
117
h NO
2- IF YES, WHO IS THE SERVICE PROVIDER?
RELIANCE
BSNL
HUTCH
OTHERS
118
3-TO WHAT EXTENT YOU ARE SATISFIED WITH THE SERVICE
USING?
EXCELLENT
VERY GOOD
GOOD
SATISFACTORY
UNSATISFACTORY
4- WHICH SCHEEME DO YOU PREFER?
PREPAID
POSTPAID
WHAT TYPE OF SERVICE YOU WANT TO USE?
GSM
CDMA
5- IF PREPAID, THEN WHY?
119
EASY ENTRY COST
FITS TO THE BUDGET
EASY AVAILABILITY
ANY OTHER
6- DO YOU WANT TO CHANGE FROM EXISTING SERVICE
PROVIDER TO RELIANCE PRE/POST PAID SERVICES?
YES
NO
7- IF YES , PLEASE GIVE REASONS:
-----------------------------------------------------------------------------------
----------------
8- WHICH CALL RATE DO YOU PREFER?
120
RELIANCE (Rs 0.50/per min.) RELIANCE (0.1/per sec)
BSNL (Rs.0.49/per min)
HUTCH (Rs0.60/per min)
9- DO YOU AWARE ABOUT THE RELIANCE PEREPAID SERVICES?
YES
NO
10-ARE YOU WILLING TO OPT FOR THE NEW PREPAID SERVICE
FROM RELIANCE?
YES
NO
11-WHAT DO YOU THINK ABOUT THE R-WORLD SERVICES
OFFERED BY RELIANCE?
121
EXCELLENT
VERY GOOD
GOOD
NO USE
12-YOUR EXPECTATION FROM RELIANCE PREPAID SERVICES?
LOWEST TARRIF PLAN
VALUE ROAMING SERVICES
AFFORDABLE INITIAL AMOUNT
ADVANCED HANDSET FEATURES
122
123