TERM PAPER

OF

SERVICE MANAGEMENT
ON

SERVICE ENCYCLOPEDIA
Reliance Communication

SUBMITTED TO:-
Mr. Hitesh Jhanji SUBMITTED BY:-
(Prof.) ARUN KUMAR GULERIA
Section RT1801
Roll No. A02
Program code 194
Reg. No. 10807166

LOVELY INSTITUTE OF MANAGEMENT (LIM)

LOVELY PROFESSIONAL UNIVERSITY
2010
 ACKNOWLEDGEMENT

I take this opportunity to offer my deep gratitude to all

those who have extended their valued support and advice to
complete this term paper. I cannot in full measure, reciprocate
the kindness showed and contribution made by various persons in
this endeavor.

I acknowledge my sincere thanks to Mr. Hitesh Jhanji

(Faculty Member) who stood by me as a pillar of strength
throughout the course of work and under whose mature
guidance the term paper arrives out successfully. I am grateful
to his valuable suggestions.

Arun Guleria

© ARUN GULERIA | arun_guleria@ymail.com

 INDEX

S.No. Page No.

PARTICULAR
1. Executive Summary 4

2. Introduction 5

3. Services Marketing Environment 7

4. The Service Segmentation 10

5. Customer Requirements & Customer Expectations 11

6. Quality Concerns 12

7. Quality Of Services 13

8. Integrated Gaps Model Of Service Quality 14

9. Service Recovery Strategies 15

10. Service Blue Print Of RELIANCE COMMUNICATION 16

11. Positioning Maps 17

12. Services Cape 18

13. Employee & Customer Role In Service Delivery 20

14. Integrated Services Marketing Communication 21

15. Delivering Service Through Intermediaries 22

16. Conclusion 23

17. References 24

© ARUN GULERIA | arun_guleria@ymail.com

 1. EXECUTIVE SUMMARY
Reliance Telecom's GSM cellular services are available in 940 towns within its eight-circle
footprint. Reliance's CDMA services are available in 19 states and cover about 65% of the
country, state wise. Reliance Infocomm also offered for the first time in India, mobile data
services through its R-World mobile portal. This portal leverages the data capability of the
CDMA 1X network. The need for the extension is due to the high degree of direct contact
between the CE providers and the customers, the highly visible nature of the service process,
and the simultaneity of the production and consumption.

A popular way to segment customers is by revenue, or profit generated with "A-list"

customers receiving more perks and personal service than "lower" categories. There are right
and wrong ways to do this. Doing it right means cultivating customers so they all feel
appreciated, by developing or improving products to meet each customer segments' needs.
Result: pleased customers and higher profit.

The ability to differentiate brand through the delivery of exceptional customer experiences,
while tightly managing costs, is something that Reliance adopted from the beginning—
recognizing it to be the new battleground of customer loyalty and a critical driver in
recruiting new customers. Reliance is known for its heavy brand investment and a complex
product portfolio, and the services are differentiated by offering tailored products at
competitive price levels.

Reliance defines quality as the possibility to exceed the demands and expectations of its
customers and our people through the continuous improvement of the operation of the
processes and systems.

GAP is based on substantial research amongst a number of service providers. In this case
expected service is a function of word of mouth communication, personal need and past
experience, and perceived service is a product of service delivery and external
communications to consumers.

The executive will transfer the problem to the back office that will solve the problem. The
interaction between onstage and back stage is separated by line of interaction. The person
will get its problem solved in the better and convenient way. The support service which will
help the service are the computer, software etc. these will help the employee provide the
better service

The Reliance has the best service in customer service and also the prices are low as compared
to other competitor in the market. The Airtel the leader in the market is best for its service but
its prices are very high. (This comparison is for the Value Added Service provided by both
the competitors). The other service providers are differently rated in the positioning map.

© ARUN GULERIA | arun_guleria@ymail.com

 2. INTRODUCTION
A DREAM COME TRUE
Late Shri Dhirubhai Ambani dreamt of a digital India — an India where the common man
would have access to affordable means of information and communication. Dhirubhai, who
single-handedly built India’s largest private sector company virtually from scratch, had stated
as early as 1999: “Make the tools of information and communication available to people at an
affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.”

It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm)
started laying 60,000 route kilometers of a pan-India fiber optic cable network which was
commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday,
though sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high capacity, integrated (both wireless and wire
line) and convergent (voice, data and video) digital network. It is capable of delivering a
range of services spanning the entire Infocomm (information and communication) value
chain, including infrastructure and services — for enterprises as well as individuals,
applications, and consulting.

Today, Reliance Communications is revolutionizing the way India communicates and

networks, truly bringing about a new way of life.

Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and
Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According to
National Stock Exchange data, Anil Ambani controls 66.75 per cent of the company, which
accounts for more than 1.36 billion shares of the company. Reliance Infocomm is an Indian
telecommunications company. It is the flagship company of the Reliance-Anil Dhirubhai
Ambani Group, comprising of power (Reliance Energy), financial services (Reliance Capital)

© ARUN GULERIA | arun_guleria@ymail.com

 and telecom initiatives of the Reliance ADA Group. Anil Dhirubhai Ambani currently
manages reliance Infocomm. It uses CDMA2000 1x technology

HISTORY
Reliance Infocomm was founded by Dhirubhai Ambani. Between 1999 to 2002, Reliance
Infocomm built 60,000 km of fiber optic backbone in India. This network was commissioned
on December 28, 2002.

FOOTPRINT
At present, Reliance Telecom's GSM cellular services are available in 940 towns within its
eight-circle footprint. Reliance's CDMA services are available in 19 states and cover about
65% of the country, state wise. Reliance Infocomm also offered for the first time in India,
mobile data services through its R-World mobile portal. This portal leverages the data
capability of the CDMA 1X network.

BUSINESS REVIEW
During the twelve months ended March 31, revenues of the Wireless business increased by
46% to Rs. 10,728 crore (US$ 2,489 million) from Rs. 7,364 crore (US$ 1,709 million).
Wireless EBITDA increased to Rs. 3,984 crore (US$ 924 million) from Rs. 2,250 crore (US$
522 million). Margins expanded to 37% from 31%.

EBITDA of the Global business increased by 98% during the twelve months ended March
31, to Rs. 1,271 crore (US$ 295 million). EBITDA margins increased to 24% from 12% last
year.

In the same period, the Broadband business achieved revenue growth of 123% to Rs. 1,144
crore (US$ 265 million), and EBITDA increased by more than 6 times, to Rs. 519 crore (US$
120 million). The EBITDA margin crossed 45% in the twelve months ended March 31, from
15% in the corresponding period in the previous year.

© ARUN GULERIA | arun_guleria@ymail.com

 3. SERVICES MARKETING ENVIRONMENT
Telecom business follows same organization structure as any other business, but it largely
differentiates itself by its process orientation. There are five verticals discernible in core
telecom business. They are business governance, product development, product delivery,
investment, and after-sale service. The growth of any business always depends upon the
marketing strategies used by that business organization. In telecom, marketing strategy is the
unit of business planning and marketing planning starts from the backyard of the customer.
The process of product development in an insurance organization requires huge industry level
data. Telecom business also focuses on the product life cycle. Strategic planning is necessary
for successful launching of products. Telecom business differs from other business in its cash
flow pattern. Telecom companies earn cash by way of premiums merely by offering promises
as products. They deploy/invest the cash to earn sufficiently by the time they are called upon
to pay claims in few probable cases. Mastering this dynamic process cycle is the rudiment of
the telecom business operation.

The term micro-environment denotes those elements over which the marketing firm has
control or which it can use in order to gain information that will better help it in its marketing
operations. In other words, these are elements that can be manipulated, or used to glean
information, in order to provide fuller satisfaction to the company’s customers. The objective
of marketing philosophy is to make profits through satisfying customers. This is
accomplished through the manipulation of the variables over which a company has control in
such a way as to optimise this objective. The variables are what Neil Borden has termed ‘the
marketing mix’ which is a combination of all the ‘ingredients’ in a ‘recipe’ that is designed to
prove most attractive to customers.

Services Marketing Mix

The services marketing mix is an extension of the 4-Ps framework. The essential elements of
product, promotion, price and place remain but three additional variables – people, physical
evidence and process – are included to 7–Ps mix. The need for the extension is due to the
high degree of direct contact between the CE providers and the customers, the highly visible
nature of the service process, and the simultaneity of the production and consumption. While
it is possible to discuss people, physical evidence and process within the original-Ps
framework (for example people can be considered part of the product offering) the extension

© ARUN GULERIA | arun_guleria@ymail.com

 allows a more thorough analysis of the marketing ingredients necessary for successful
services marketing.

Product :- A product with many different features provides customers with opportunities to
chat, play games, send and receive pictures, change ring tones, receive information about
travel and sporting events, obtain billing information - and soon view video clips and send
video messages.

Reliance World provides on-the-move information services. Some of the products of

Reliance Communication are:
 Prepaid Cellphone connection
 Prepaid recharge card
 Top - ups
 RIM Postpaid
 Calling Cards
 RIM PCO
 RIM Handyphone
 I-Phone 3G
 Magic box Handset
 World Calling Cards

Price: - Reliance Communication wants to make its services accessible to as many people as
possible: from the young, through apprentices and high powered business executives, to the
more mature users. It offers various pricing structures to suit different customer groups.

 Monthly price plans are available as well as prepay options. Phone users can top up
their phone on line.
 Reliance UK gives NECTAR reward points for every £1 spent on calls, text
messages, picture messages and ring tones.
 Promotion: - Reliance works with icons such as Hrithik Roshan to communicate its
brand values.

Above the line

 Advertising on TV, on billboards, in magazines and in other media outlets reaches
large audiences and spreads the brand image and the message very effectively. This is
known as above the line promotion.

Below the line

 Stores have special offers, promotions and point of sale posters to attract those inside
the stores to buy.

Reliance's stores, its products and its staff all project the brand image. Reliance’s advertising
campaign
 Promotional mix
 Advertisements – TVC, Print, Radio, hoardings
8

© ARUN GULERIA | arun_guleria@ymail.com

  Value added services ads – Visual ads supported by Print ads
 Events/programs – IPL Matches and Big TV.
 Sales Promotions – Special prepaid bundle for Diwali.
 Value Added Services of Reliance needed more promotion
 'Go For It' says Reliance GSM with Hrithik Roshan ..was the perfect way to spread
awareness.
 VAS is considered a cash cow for cellular companies.
 IPL season 2 had lot of scope to be taken advantage.

People – because of the simultaneity of production and consumption in services the CE staff
occupy the key position in influencing customer’s perceptions of product quality. In fact the
service quality is inseparable from the quality of service provider. An important marketing
task is to set standards to improve quality of services provided by employees and monitor
their performance. Without training and control employees tend to be variable in their
performance leading to variable service quality. Training is crucial so that employees
understand the appropriate forms of behaviour and trainees adopt the best practises of the
andragogy. Reliance actively develops good public relations by sending press releases to
national newspapers and magazines to explain new products and ideas.

Physical evidence – this is the environment in which the service is delivered and any
tangible goods that facilitate the performance and communication of the service. Customers
look for clues to the likely quality of a service also by inspecting the tangible evidence.
 It also sells through independent retailers e.g. Car phone Warehouse.
 Customers are able to see and handle products they are considering buying.
 People are on hand to ensure customers' needs are matched with the right product and
to explain the different options available.

Process – This means procedures, mechanism and flow of activities by which a service is
acquired. Process decisions radically affect how a service is delivered to customers.
 Reliance recruits high quality staff treat them well and communicate clearly to them:
their attitudes and behaviour are the key to service quality and differentiations
 They attempt to market to existing customers to increase their use of the service, or to
take up new service products
 There is set up of a quick response facility to customer problems and complaints
 They employ new technology to provide better services at lower costs
 They use branding to clearly differentiate service offering from the competition in the
minds of target customers.

© ARUN GULERIA | arun_guleria@ymail.com

 4. The Service Segmentation
A popular way to segment customers is by revenue, or profit generated with "A-list"
customers receiving more perks and personal service than "lower" categories. There are right
and wrong ways to do this. Doing it right means cultivating customers so they all feel
appreciated, by developing or improving products to meet each customer segments' needs.
Result: pleased customers and higher profit. Doing it wrong creates risk of sub-standard
service for "unimportant" customers, making them feel unappreciated and resentful. Result:
missed profit opportunities and disgruntled customers.

10

© ARUN GULERIA | arun_guleria@ymail.com

 5. Customer Requirements & Customer Expectations
When it comes to quality of service, customers have higher expectations than ever. They
want nothing less than a superb customer experience from their providers. With narrowing
choice from competing telecom companies and no compelling reason to remain loyal,
consumers can, and will, vote with their feet. Whether a company is new to the market, or
well established, it’s clear that providing superb customer experiences has to become part of
an organization’s DNA in order for it to bolster customer advocacy and reduce unwanted
churn.

Traditionally, there has been a high cost associated with providing a superb customer
experience. The “telecom tightrope” is the balancing act providers perform when trying to
balance delivering great customer experiences with controlling and even reducing costs.
However, Reliance Communication has mastered the tightrope and is delivering exceptional
customer service with very lean operations.

The ability to differentiate brand through the delivery of exceptional customer experiences,
while tightly managing costs, is something that Reliance adopted from the beginning—
recognizing it to be the new battleground of customer loyalty and a critical driver in
recruiting new customers. Reliance is known for its heavy brand investment and a complex
product portfolio, and the services are differentiated by offering tailored products at
competitive price levels.

From the outset, Reliance’s criteria for successful market entry determined that delivering
satisfactory customer experiences was essential.

STRATEGIES USED BY RELIANCE TO MEET CUSTOMER

EXPECTATIONS:
Differentiated Product
 Simple price structure focused on essentials
 Low price point
 No long term commitment

Alternative Channels
 Low acquisition costs
 Focus on online sales
 Leverage community effect

Lean operations
 High online self-service
 Simple product features

Strong brand
 Build up brand and/or leverage channel asset
 “Trust” in company key for final purchasing decision
An online only sales channel, and the need to keep acquisition costs to a minimum, was
dependent on building a community of satisfied customers happy to recommend Reliance
Mobiles to others.
11

© ARUN GULERIA | arun_guleria@ymail.com

 6. QUALITY CONCERNS
Reliance’s concern and priority is to satisfy customers, by understanding and foreseeing their
needs, as well as covering their demands and expectations and by providing products and
services of exceptional quality.

Reliance defines quality as the possibility to exceed the demands and expectations of its
customers and our people through the continuous improvement of the operation of the
processes and systems.

Reliance’s quality concern is committed to…

1. Ensuring compliance with all the requirements of the Quality Management System.
2. Realizing vision through every day work and performance.
3. Continuously improving business in order to achieve our strategic goals.

QUALITY JOURNEY BY RELIANCE

 Anil Ambani – The Telecom Person of the Year 2008 by Light Reading

 Most Promising Service Provider of 2003 (Asia Pacific) Award instituted by Asia
Pacific Technology from Frost & Sullivan.

 RCOM adjudged the World’s Top CDMA Operator at the Global CDMA Industry
Achievement Awards.

 Reliance Mobile amongst the "Top 10 Most Trusted Brands“ & rated as "India's Most
Trusted Service Brand 2009“ by "The Economic Times“

 Reliance Mobile" voted as No.8th in "India's Most Admired Marketers“. The

youngest Indian brand amongst the "Top 10" and ahead ofP&G, Hero Honda,
Samsung, LG, Colgate and Cadbury's.

 Reliance Mobile, India's Top 25 Marketers Awards 2009, Pitch, November 09.

 World Brand Congress, Chair for Yr.2009-10 granted to RCOM, November'2009

 Business Today along with TAM rated Simply Reliance TVC as the most watched Ad
in the month of October 2009.

 Total Network TVC s Kedarnath & Highway rated as No.1 campaign in India for the
month of Aug 08 & Sept 08.

 Most awarded single brand for Creative Excellence ABBY Awards 2007(Advertising
Agency Association of India).

 Fair &Lovely Scholarship on Reliance Mobile wins at MMA Awards, USA.

12

© ARUN GULERIA | arun_guleria@ymail.com

 7. Quality of Services
In the scope of developing services that correspond to customers' needs, Reliance, has
adopted a specific framework of systematically assessing quality of services end-to-end, from
their concept and planning phase until their delivery to the market. This framework includes
the following methods:
 Service Evaluation
Service evaluation is conducted aiming to ensure that new products and services are
designed, developed and implemented according to quality requirements, company policies
and processes aiming to meet customer needs. Quality standards of new services and products
are verified through specific benchmarking trials, prior and post launch, against initial
technical and quality specifications.

 Quality of Service (QoS) Monitoring

One of the most important methods for target setting and network development prioritisation
is to simulate and understand customers' perception on the use of mobile telecommunications
network. The fundamental indicators demonstrating QoS achieved by Reliance – RIM
network is the "Call Success Rate (CSR)" (the percentage of successfully set-up, maintained
and released calls, as perceived by the customer), the "Poor Voice Quality"(assessing the
quality of communication) and the “Weak Signal Percentage” (evaluating the weak signal
level ). QoS monitoring is conducted for GSM, GPRS and UMTS services.
 Suppliers & Partners Performance Evaluation
Reliance in order to develop mutual trust and cooperation with its main partners
systematically assesses the quality of this cooperation. The assessment aims to identify areas
for improvement and to implement appropriate actions in order to achieve mutual beneficial
synergies
Participation in Reliance Communication Group Network & Service
Quality Team
Reliance India Mobile, aiming to measure quality of all services and especially those
conveyed on new technologies, participates in the Reliance Communication Group Network
& Service Quality Team. The purpose is to:
 Plan and introduce Quality of Service (QoS) indicators for services that are
implemented within the framework of large corporate projects
 Ensure the use of quality plans and measure their implementation
 Identify required changes in the company, in order to incorporate new services and
technologies.
13

© ARUN GULERIA | arun_guleria@ymail.com

 8. Integrated Gaps Model of Service Quality

This model offers an integrated view of the consumer-company relationship. It is based on

substantial research amongst a number of service providers. In this case expected service is a
function of word of mouth communication, personal need and past experience, and perceived
service is a product of service delivery and external communications to consumers.

The key points for each gap can be summarized as follows:

 Customer gap: The difference between customer expectations and perceptions –
the service quality gap.
 Gap 1: The difference between what customers expected and what management
perceived about the expectation of customers.

 Gap 2: The difference between management’s perceptions of customer

expectations and the translation of those perceptions into service quality
specifications and designs.

 Gap 3: The difference between specifications or standards of service quality and

the actual service delivered to customers.

 Gap 4: The difference between the service delivered to customers and the
promise of the firm to customers about its service quality

14

© ARUN GULERIA | arun_guleria@ymail.com

 9. SERVICE RECOVERY STRATEGIES

Service is involved with the need to satisfy the customer. Professional business firms
attempts to sell their competence and build reputation. Service organizations occasionally
make a mistake and might mistreat their customers. A good service recovery can turn a
disgruntled customer into loyal one and turn a frustrating experience into a fond memory.
One way to enhance service recovery us to motivate the front line employees to identify
problems and empower them to correct service mistakes.

Reliance's reputation depends on earning the trust of its customers. Their loyalty is vital to
the long-term success of our business. Important consumer issues include the clarity of our
pricing, the responsibility of our marketing material, the way they handle customer privacy
and measures to protect customers from inappropriate content, contact and commercialism.
They also address other consumer issues such as responsible mobile phone use, driving safety
and mobile theft.

Customers can now access an ever-expanding range of features and services on their mobile
phones, including picture messaging, downloadable games, music, pictures and video clips,
internet access and mobile television. These technologies bring significant benefits to our
business and personal lives, but can also raise concerns about misuse.

15

© ARUN GULERIA | arun_guleria@ymail.com

 10. Service Blue Print of RELIANCE COMMUNICATION

Service Blueprint of Reliance Communication:

Service Blueprint of Reliance Communisation for a small problem solving

The above blue print is for the person who faces some problem while getting the service and
he approaches for a complaint to the showroom. In the show room the first thing he comes in
contact is the parking lot followed by the slip delivering machine. The slip gives the token
number for meeting the executive in the showroom. The physical evidence in the showroom
are the chairs, tables, ticket vending machines etc. the person will meet the executive and will
tell him the problem. The interaction between the executive and the customer is the line of
visibility. The executive will transfer the problem to the back office that will solve the
problem. The interaction between onstage and back stage is separated by line of interaction.
The person will get its problem solved in the better and convenient way. The support service
which will help the service are the computer, software etc. these will help the employee
provide the better service.

16

© ARUN GULERIA | arun_guleria@ymail.com

 11. POSITIONING MAPS:

High (customer ervice)

Reliance

Airtel

Tata DOCOMO

High (price) Low (price)

Idea Virgin

Vodafone

Low (customer service)

Positioning map for Reliance Communication in comparison to other operators

The Reliance has the best service in customer service and also the prices are low as compared
to other competitor in the market. The Airtel the leader in the market is best for its service but
its prices are very high. (This comparison is for the Value Added Service provided by both
the competitors). The other service providers are differently rated in the positioning map.

17

© ARUN GULERIA | arun_guleria@ymail.com

 12. SERVICES CAPE
The importance of the servicescape (the physical facilities of a service company), the effect
of the servicescape on quality perception has been inadequately captured by previous
empirical research. The purpose of this paper is to examine the impact of the servicescape on
perceived quality in a more comprehensive way.

A SELF SERVICE SERVICESCAPE

The service is designed around a customer helping self with the service .The role of service
employees is limited. Customer performs most of the activities, either on their own or with a
little help from the provider. Examples are ATMs, cinema halls, gymnasium and self service
restaurants etc. The service provider must plan the facility exclusively with the customer in
mind. The facility design can attempt to position it for the desired market segment, by
making the facility pleasing and appropriate to use for them. A gym layout and design and
design (choice of equipment) conveys the segment of population that is targeted – slimming
enthusiasts, body shapers, sportspersons, business executives and housewives or the youth.

AN INTERPERSONAL SERVICESCAPE
When a service encounter requires a close interaction between the customer and provider the
servicescape must be facilitate this interaction. An interpersonal servicescape is appropriate.
Hotels, hospitals, schools and banks are examples of this type of servicescapes, they must be
designed to attract, satisfy and facilitate the activities of both conducive to the interaction
between the two.

A REMOTE SERVICESCAPE
There are service settings where there is little or no customer involvement in the
servicescape. Telecommunications, insurance and call centres etc., are examples of remote
encounters. These use remote servicescapes. They are back office .The place has to be
designed to keep employees’ motivation and morale high. The servicescape should
premeditate ergonomically to facilitate teamwork, supervision and operational efficiency.

Roles of Servicescape
A servicescape is not a passive setting it plays an important role in service transactions. An
evaluation of the roles they have in service encounters will reveal how important it is to
design an appropriate servicescape .A servicescape plays four important roles.

Package
Servicescapes ‘package’ the service offer and communicate an image to the customers of
what they are going to get. It is the corporeal manifestation of the service idea for interest
groups to form a shared appreciation-ma perceptible metaphor for an intangible service. They
are predetermined to render an intended image to the service concept and evoke a particular
sensory and emotional reaction that sets the stage for a germane experience that augments the
efficacy of the offer. Appropriate servicescaping is a sure shot way to create an image that the
service provider is seeking to put up. It also helps moderate customer expectation and
reinforces his experience and reminiscences. Servicescape is an outward appearance of
organization and thus can be critical in forming initial impressions or setting up customer
expectation.

18

© ARUN GULERIA | arun_guleria@ymail.com

 Facilitator
Another important job of servicescape is to act as an a facilitator in assisting both the
customers and service employees to make most of the opportunity it should make the service
consumption comfortable convenient for the customer. For employees it should be pleasant to
conduct activities. This setting is designed can enhanced or inhibits the efficient flow of
activities in the service setting making it easier or harder for customer and employee to
accomplish their goals.

Socializer
Design of servicescapes aids in socialization of both the customers and employees, conveying
expected roles, behavior and relationship. Compare the servicescape of a public Service
provided with that of a private service provider. In a public servicve provider a large part of
the floor is marked as restricted, leaving little space in the form of an arrow aisle along the
outer walls of the hall for customers. The message is clear –customer must not enter the
restricted area, that is where the most important job of the service, internal operations, is
conducted and by entering that area, customers will be interfering with that task. Whereas
private service operator approach customers with convivability. The air conditioned lounge
with comfortable seats and a cold water dispenser as you pass through a spotlessly clean glass
door, makes customers feel welcome . They are allowed more space to move and occupying a
seat across from executive’s desks suggests that customer is indeed central to all activity. The
service with public operator also suggests that customers have a formal –official relationship
with public service users, whereas servicescapes in private showroom encourage casual –
affable interactions.

Differentiator
With the layouts a customer can make out what kind of operator it is. A dominance of light
red at showroom differentiates it with dark red of Airtel. Candle lit tables with smooth
classical music and tables with clothes and pre-laid cutlery differentiates a restaurant from
other with flour cent colors and pattern on the walls, blasting music, crowded with young
boys and girls and motorcycles at the makeshift parking in front. Clearly the design of the
servicescape differentiates one provider from its competitors, and hints at the segment the
services are targeted at. Companies adapt servicescape to reposition the services or identify
new customer segments.

PRICING OF SERVICES
The Reliance is following discrimination pricing strategy. To target different target it has
different pricing. The pricing is such that it caters the needs of different target group. Like for
youngsters it has FF pack, night pack, sms pack etc.

Besides discrimination pricing it is also following competitive pricing where it try to match
its prices with other service provider say for eg. Airtel.

19

© ARUN GULERIA | arun_guleria@ymail.com

 13. EMPLOYEE & CUSTOMER ROLE IN SERVICE
DELIVERY
Reliance Telecom recognizes that customer's expectation/requirement/grievances can be
better appreciated through personal interaction with customers by (CRO) customer relation
office's staff. Structured customer meets, say once in a month will give a message to the
customers that the CRO cares for them and values their feedback/suggestions for
improvement in customer service. Many of the complaints arise on account of lack of
awareness among customers about Reliance services and such interactions will help the
customers appreciate customer relationship services better. As for the CRO the feedback
from customers would be valuable input for revising its product and services to meet
customer requirements.

 Customers treated fairly at all times

 Complaints raised by customers are dealt with courtesy and on time
 Customers are fully informed of avenues to escalate their complaints/grievances within the
organization and their rights to alternative remedy, if they are not fully satisfied with the
response of the insurance company to their complaints.
 RELIANCE TELECOM treats all complaints efficiently and fairly as they can damage the
CRO's reputation and business if handled otherwise.
 The CRO employees work in good faith and without prejudice to the interests of the
customer.
 Hiring, training and supervising all staff that works within the Reliance. Completing all
necessary security checks and reference checks for potential employees.
 Setting policies and training staff regarding changes in Reliance policies as needed.
 Developing new marketing programs or incentives to increase the deposits and services offered by
the telecom company.
 Addressing and handling customer complaints, discrepancies in accounts or shortages from the
various tills or teller areas of the CRO.
 Providing assistance to Reliance Telecom clients and making sure that they are satisfied with
Reliance services now and in the future.

20

© ARUN GULERIA | arun_guleria@ymail.com

 14. INTEGRATED SERVICES MARKETING COMMUNICATION

The well-designed marketing communications initiatives developed by Reliance Telecom

that helped it gain leadership position in the Indian telecom sector. During its initial years
Reliance Telecom focused on creating a strong brand identity and awareness and designed
the marketing communication strategy accordingly. However, in 2002 it completely changed
the communications strategy and began to promote specific products from its product
portfolio based on the consumer research study. One of the promotional objectives designed
was to create a feel good factor around GPRS plan.

Brand building through corporate advertising, defined generally as advertising that benefits a
company’s image by emphasizing its own resources, skills and/or character. Many astute
business people now recognize corporate brands as fundamental business assets, and have
begun reaching out to customers, prospects, and the financial community by advertising those
brands.

Brand building advertising is synonymous with product advertising and is commonly seen in
traditional mass media, including TV, radio, magazine, and newspaper. Brand building
advertisements tend to be product/service- (or retailer-) oriented with the purpose to establish
a positive image and creating demand for a product or service that leads to eventual purchase.
The communication route is typically one-to-many and is designed to reach a mass audience
by using a tactic of at capturing the attention of users.

21

© ARUN GULERIA | arun_guleria@ymail.com

 15. DELIVERING SERVICE THROUGH INTERMEDIARIES

Business Development Manager:

Business Development Manager is the largest distribution channel of Reliance Telecom,
comprising a large advisor force that targets various customer segments. The strength of
Business Development Manager lies in an aggressive strategy of expanding and procuring
quality business. With focus on sales & people development, tied agency has emerged as a
robust, predictable and sustainable business model.

Distribution Scenario:
In today's Indian telecom market, the challenge to telecom operators and intermediaries is
two-pronged:
 Building faith about the company in the mind of the client.
 Intermediaries being able to build personal credibility with the client.

Traditionally Business Development Manager have been the primary channels for SIM and
RUIM distribution in the Indian market; the public sector insurance companies have their
branches in almost all parts of the country and have attracted local people to become their
agents. The agents are from various segments in society and collectively cover the entire
spectrum of society. A person who has lived in the locality for many years sells the products
of the telecom company with a local branch nearby.

This ensures the last mile touch point being closer to the customer. Of course, the profile of
the people who acted as agents suggests they may not have been sufficiently knowledgeable
about the different products offered, and may not have sold the best possible product to the
client. Nonetheless, the customer trusted the agent and company. This arrangement worked
adequately in the absence of competition.

In today's scenario agents continue as the prime channel for telecom product distribution in
India, as is the case in most markets, supported by call centers to a small extent. Almost all
the new players follow this model primarily because the regulations for other channels are yet
to be put in place.

What have emerged is a much more difficult and evolving market scene with existing
players, more new players coming in, and global marketing practices and ideas being tested.
But none of this has changed the fundamental character of the market, which we believe will
take more time than expected.

22

© ARUN GULERIA | arun_guleria@ymail.com

 16. CONCLUSION
Although it is useful from a strategic point of view to think about the multiple roles of the
servicescape and how they interact making actual decision about servicescape design requires
an understanding of why the effects occur and how to manage them. The roles played by
servicescape in a particular situation will aid in identifying opportunities and deciding just
who needs to be consulted in making facility design decisions..

Practical implications – Service providers should give careful consideration to their

servicescape. In accordance with findings from environmental psychology, the servicescape
may not remain limited to tangible elements, but must also consider ambient components
such as odours and background music.

23

© ARUN GULERIA | arun_guleria@ymail.com

 17. REFERENCES

1. Clow, Kenneth, Services Marketing, Biztantra, New Delhi, 2008

2. Zeithaml, Valarie, Services Marketing, Tata McGraw Hill, New Delhi, 2008

3. Harsh Verma, Services Marketing, Pearson Education Asia, New Delhi,2008

4. Andaleeb, SS., Basu, AK. (1994) ‘Technical complexity and consumer knowledge as
moderators of service quality evaluation in the automobile industry’, Journal of
Retailing 70(4): 367–81.

5. Buzzell, R. and Gale, B. (1987) ‘The PIMS Principles: Linking Strategy to

Performance’, Free Press, New York.

6. Brown, S., and T. Swartz. (1989), ‘A Gap Analysis of Professional Service Quality’,
Journal of Marketing, 53, 92-98.

7. Babakus, E., and G, Boller. (1992) ‘An Empirical Assessment of the SERVQUAL
Scale’,Journal of Business Research, 24, 253-268.

8. Blanchard, R., and R. Galloway. (1994),"Quality in Retail Banking", International

Journal of Service Industry Management, 5(4), 5-23.

Website
1. www.reliancemobile.com

2. www.wikipedia.com/reliance_mobile/india

3. www.pressinida.in/reliancegroup%adkdfkisa.pdf

4. www.scribd.com/reliance=project33.http8erkajk.akdj-akd.html

24

© ARUN GULERIA | arun_guleria@ymail.com