A

RESEARCH PROJECT REPORT ON

COMPARATIVE STUDY OF RIM WITH OTHER PRODUCTS

IN THE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION

of Mahamaya Technical University, Noida

BATCH(2011-13)

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

The concept of buying behavior is of prime importance in marketing and has evolved over the years. It is important to understand consumer buying behavior as it plays a vital role in creating an impact on purchase of products. The human wants are unlimited and always expect more and more. Mobile pre-paid products and Mobile handsets are no exception to this behavior. This lead to constant modifications of Mobile pre-paid products and mobile handsets and today we see lots of pre-paid products and new handset coming into the market practically every month. In this research study my findings gave me a through insight of consumer buying behavior towards mobile pre-paid products and handset models. I found that consumers consider various parameters while buying a mobile operator and mobile handsets. Factors such as better connectivity, attractive tariff and low entry cost plays an important role in influencing a customer for opting any network similarly price, functions availing and long battery backup are considered very important factors for a customer before buying a handset model. The study also helps me to know what are the major factors of dissatisfaction among the people after using a mobile operator. On the whole, the market is a very important place to study the behavior of consumers and also Provide useful insights what a consumer requires in a product. It is only through research that an Company will be able to study the buying behavior of consumers.

COMPANY PROFILE

INTRODUCTION
Technological changes in the telecom and computers have radically changed the business scenario. In turn, the new demands of business have spurred many telecom based technological innovations. In order to exploit these innovations for competing in global markets, business community the world over has been putting pressure on governments to revise the policy, regulation and structure of the telecom sector. Several countries across the world have responded by restructuring the state controlled telecom service provider, increasing private participation, and deregulating service provision. The emergent organizations have attempted to be more responsive to the business needs and have evolved mechanisms to remain competitive even under tremendous pressures. Over the past several years, developing countries have also recognized the important role a responsive, business oriented and technologically advanced telecom sector plays in the growth of the economy. Many developing countries now accept the limitations of a monolith state monopoly in responding to the twin challenges of spurring internal growth and competing in an increasingly global economy. Past experience of reform across many countries suggests that the fundamental underlying issue that must be addressed in telecom reform is introduction of competition for efficiency. Competition is considered to be an important factor than ownership in introducing efficiency.

India's 21.59 million-line telephone network is one of the largest in the world and the 3rd largest among emerging economies (after China and Republic of Korea). Given the low telephone penetration rate India offers vast scope for growth. It is, therefore, not surprising that India has one of the fastest growing telecommunication systems in the world with system size (total connections) growing at an average of more than 20 percent over the last 4 years. The industry is considered as having the highest potential for investment in India. The growth is demand for telecom services in India is not limited to basic telephone services. India has witnessed rapid growth in cellular, radio paging, value-added services, internet and global mobile communication by satellite (GMPCS) services. This is expected to soar in the next few years. Recognizing that the telecom sector is one of the prime movers of the economy, the Government's regulatory and policy initiatives have also been directed towards establishing a world class telecommunications infrastructure in India. The telecom sector in India therefore offers an ideal environment for investment. The telecommunications initiative in the country is lead by Ministry of Communications through the Department of Telecommunication & Department Telecom Services and its undertakings for provision of basic telephone services, national and international long distance communications, manufacture of complete range of telecom equipment, research and development and consultancy services. The Telecom Commission performs the Executive and Policy making functions. Telecom Regulatory Authority of India performs the functions of an independent regulatory body.

HISTORY OF INDIAN TELECOM SECTOR

Telecom sector was a state monopoly until the mid eighties when the liberalization process started. The department of telecommunication (DoT), under the Ministry of Communication administered telecom services. The planning commission, an apex level body, allocated funds for telecom development from government resources. The telecom sector, therefore, competed with other developmental priorities of the government for a share in resource allocation. Planning, engineering, installation, maintenance, management, and operations of telecom services for the whole of India was managed by the DoT, which also lay down and monitored adherence to technical standards and managed frequency usage. The DoT was a monolithic entity, with a huge work force managing the telecom operations of the entire country. The bureaucratic approach and the slow acceptance and induction of new technologies with very little customer orientation were perceived as barriers to growth. Consequently, two new public sector corporations Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were set up under the DoT. MTNL was carved out of the DoT and took over the operation, maintenance, and development of telecom services in Mumbai and New Delhi. VSNL was set up to plan, operate, develop, and accelerate international telecom services in India. The government created the corporate organizations in order to allow decision making autonomy and flexibility and facilitate

public borrowings which would not have been possible under a government framework. However, policy formulation, regulation and several key decision areas remained with the DoT. A new organization, the Telecom Commission, was created with a wide rang eof executive, administrative and financial powers to formulate and regulate policy and prepare the budget for the DoT. The Telecom Commission had four full time members managing technology, production, services, and finance and four part time members representing the planning commission, department of finance, department of industry, and department of electronics. The key driver for change in the sector was the National Telecom Policy announced in May 1994. It boldly specified its major objectives as telephone demand, achievement of universal service obligation and ensuring world class service to subscribers. This policy also paved the way for private sector participation in telecom services. Objectives of NTP (1994) were Telecom for all the telephone in reach of all. Provision for certain basic telecom service at affordable and reasonable price. World class quality of telecom service. India to emerge as a major manufacturing base and exporter of telecom equipment.

Telecom services were categorized into domestic basic (which included basic telephony, telex and fax), domestic value-added services (VAS) which covered all other services such as paging, cellular, data services, VSAT and international basic and VAS. Telecom service liberalization

started in 1984, with private sector being allowed to manufacture customer premise equipment. In 1992, service provision was opened for private sector. At this stage government also unbundled basic and VAS. Private operators were allowed to participate in provision of VAS such as cellular and paging services. Subsequently, basic services in the local lop were opened for private operators. Basic service provision had been planned as a duopoly between the DoT and a selected service provider. Several service providers, one for each of the twenty "circles" into which the entire country had been divided would compete with the DoT for basic services. the bidders were valued both on financial and technical parameters. Permissible network technologies were specified and basic service providers were required to base their services on fiber-optic cable and wireless in the local loop as far as possible. Licenses had been granted for an initial period of 15 years and could be extended by another 10 years. Private Service operators were allowed to provide intra-circle long distance service which contributed to almost 60% of the total calls. The government had mandated that all private basic service operators had to provide 10% of all new lines in rural areas. A weight age of 15% for service provision in rural areas was given at the time of bid selection. A penalty on a per day basis for each telephone not installed sought to prevent companies from delaying meeting rural targets. At the same time, the government encouraged new emerging technologies including local loop wireless, cellular telephony and satellite based communication systems that could help develops rural telecom in a cost effective manner.

Inter-circle communication remained under the DoT. VSNL maintained an exclusive license for international services for at least until 2004. Advanced communication services like cellular, paging, e-mail, fax, data transmission over telephone and leased circuits were increasingly being made available by private operators. However, Electronic Data Interchange standards and its adoption had not made much progress largely due to the problems in long distance communication, lack of coordination for adopting standards, and unclear policies in the various departments involved in national implementation.

HIGHLIGHTS
The telecom muddle is growing murkier and murkier by the day. In addition, so are the claims of the great Indian telecom revolution. 5th largest network in the world, second largest among emerging economies (after China). Annual growth rate of 22% in basic telephone service and over 100% for cellular and Internet services. Private participation allowed in all types of telecom and IT enabled services. License granted on non-exclusive basis for basic, national long distance, international long distance, Internet, V-Sat services etc.

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Foreign equity participation permitted in the telecom service sector. Huge market for all types of telecom equipments for both wire line and wireless, Internet, call centres, etc.

Foreign direct investment of up to 100% permitted for the manufacturing of telecom equipment.

Investment potential across a wide spectrum of telecom service

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THE COMPANY RELIANCE COMMUNICATIONS AT A GLANCE

Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. It is listed on the National Stock Exchange and the Bombay Stock Exchange, and is Indias leading integrated telecommunication company with over 80 million customers. The business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications wih a constant endeavour to achieve customer delight by enhancing the productivity of the enterprises and individuals. It is ranked among Asia's 6 Topmost Valuable Telecom Companies and is India's

foremost truly integrated telecommunications service provider. The company's customer base of over 31 million including close to 1 million individual overseas retail customers, and is rated among the Top 10 Asian Telecom companies. Reliance Communications corporate clientele includes 600 Indian and 250 multinational corporations, and over 200 global carriers.

The company has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire Infocomm value chain, covering over 6000 towns and 3,00,000 villages. Reliance Communications owns and operates World's largest next generation IP enabled connectivity infrastructure, comprising over 150,000 kilometers of fibre optic cable
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systems in India, USA, Europe, Middle East and the Asia Pacific region. The company's subsidiary, FLAG Telecom owns World's largest private undersea cable system, spanning 65,000 kilometers connects the top business centers in developed and emerging markets across 6 continents.

Reliance Communications has interests in Direct To Home (DTH) TV also, known as "Big TV". It plans to launch its DTH business by July 2008. Once launched, RelCom will have presence across all B2C communications channel in one of the fastest growing markets in the world.

On the 30th December 2008, Reliance became the first telecom company in India to operate in both CDMA as well as GSM technologies.

VISION
We will leverage our strengths to execute complex global-scale projects to facilitate leadingedge information and communication services affordable to all individual consumers and businesses in India.

We will offer unparalleled value to create customer delight and enhance business productivity.

We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.

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MISSION
To attain global best practices and become a world-class communication service provider guided by its purpose to move towards greater degree of sophistication and maturity. To work with vigor, dedication and innovation to achieve excellence in service quality, reliability, safety and customer care as the ultimate goal. To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organisation. To contribute towards community development and nation building. To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all, the people. To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenge and attain goals. To encourage ideas, talents and value systems. To uphold the guiding principle of trust, integrity and transparency in all aspects ofinterpretation and dealings.

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CHAIRMAN'S PROFILE ANIL DHIRUBHAI AMBANI

Regarded as one of the foremost corporate leaders of contemporary India,Shri Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources limited.

He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat.

Till recently, he also held the post of Vice Chairman and Managing Director of Reliance Industries Limited (RIL), Indias largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the companys management over the next 22 years.

He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the countrys first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

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LITERATURE REVIEW

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LITERATURE REVIEW

GOVERNMENT POLICY AND GUIDELINES In 1994, the Government announced the National Telecom Policy which defined certain important objectives, including availability of telephone on demand, provision of world class services at reasonable prices, ensuring India's emergence as major manufacturing / export base of telecom equipment and universal availability of basic telecom services to all villages. It also announced a series of specific targets to be achieved by 1997. As against the NTP 1994 target of provision of 1 PCO per 500 urban population and coverage of all 6 lac villages, DoT has achieved an urban PCO penetration of 1 PCO per 522 and has been able to provide telephone coverage to only 3.1 lac villages. As regards provision of total telephone lines in the country, DoT has provided 8.73 million telephone lines against the eighth plan target of 7.5 million lines. In addition to some of the objectives of NTP 1994 not being fulfilled, there have also been far reaching developments in the recent past in the telecom, IT, consumer electronics and media industries world-wide. Convergence of both markets and technologies is a reality that is forcing realignment of the industry. At one level, telephone and broadcasting industries are entering each other's markets, while at another level, technology is blurring the difference between different conduit systems such as wireline and wireless.

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The new telecom policy framework is also required to facilitate India's vision of becoming an IT superpower and develop a world class telecom infrastructure in the country. Access to telecommunications is of utmost importance for achievement of the country's social and economic goals. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the telecom policy. The objectives of the NTP 1999 are as under: Access to telecommunications is of utmost importance for achievement of the country's social and economic goals. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the telecom policy. Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country's economy; Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country; Create a modern and efficient telecommunications infrastructure taking into account the convergence of IT, media, telecom and consumer electronics and thereby propel India into becoming an IT superpower.

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Convert PCO's, wherever justified, into Public Teleinfo centres having multimedia capability like ISDN services, remote database access, government and community information systems etc.

Transform in a time bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players;

Strengthen research and development efforts in the country and provide an impetus to build world-class manufacturing capabilities.

Achieve efficiency and transparency in spectrum management. Protect defence and security interests of the country. Enable Indian Telecom Companies to become truly global players.

The New Policy framework must focus on creating an environment, which enables continued attraction of investment in the sector and allows creation of communication infrastructure by leveraging on technological development.

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REGULATORY ENVIRONMENT

The Telecom Regulatory Authority of India (TRAI) was formed in January 1997 with a view to provide an effective regulatory framework and adequate safeguards to ensure fair competition and protection of consumer interests. The Government is committed to a strong and independent regulator with comprehensive powers and clear authority to effectively perform its functions. Towards this objective the following approach has been be adopted: Section 13 of The TRAI Act gives adequate powers to TRAI to issue directions to service providers. Further, under Section 14 of the Act, the TRAI has full adjudicatory powers to resolve disputes between service providers. TRAI will be assigned the arbitration function for resolution of disputes between Government (in its role as licensor) and any licensee. The Government will invariably seek TRAI's recommendations on the number and timing of new licenses before taking decision on issue of new licenses in future. The functions of licensor and policy maker would continue to be discharged by Government in its sovereign capacity. In respect of functions where TRAI has been assigned a recommendatory role, it would not be statutorily mandatory for Government to seek TRAI's recommendations

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THE TECHNOLOGY

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COMPARISON BETWEEN GSM AND CDMA GSM AND CDMA

Before we go on this please take care this in mind that in the current marketing war between telecom co's, consumer is the end beneficiary. Here let us discuss on technology only and part to any brand/company. All brand/company names are for illustration only. Comparison between GSM based cellular service and limited Mobility GSM and CDMA:

The Basics GSM : The Global System for mobile communications (GSM) divides the people by frequency channels and time slots. The available spectrum (4.4 MHZ-0.2 MHZ in India) is first split 200 khz chanels, which are chopped into time slices. Users of the channel take turns in their allotted time slots in a round robin fashion, thus only one person utilizing the channel but he uses it for very short time (about 577 micro seconds). Further to optimize the frequency usage and cover the large areas, the total available channels (22 for 4.4 MHZ) are split into 7 reusable groups. To avoid interference at the boundaries of cells, adjacent cell shares the same frequency channels.

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CDMA

Code Division Multiple Access (CDMA) lets everyone transmit at the same time. CDMA works by giving unique codes to all speech bits and the encrypted signals are dispersed over a wide frequency spectrum(1,25 MHZ). the signals are picked by the receiver's equipment that is tuned/programmed to identify that code. In contrast to Gsm, same frequency channels are used in each cell in India, mobility for basic operator (BSOs) was recommended by TRAI in 01 and also adopted by the - government's a cheaper alternative to fixed line to increase the Tele density. This is through Wireless in systems where only the last mile is wireless (instead of copper wire) and the terminal is either fixed or has extremely limited mobility. The approval of WLL in the India context envisaged mobility within a Short Distance Coverage Area(SDCA), and each DSCA can be as large as 25 kms radius. WLL or 'Wireless in Local Loop' mobile service is a restricted services. It will work only within the Short Distance Code Area (SDCA), which is typically city limits. For instance, a subscriber to WLL mobile in New Delhi cannot use same phone & phone number in Ghaziabad, and Noida, which fall in different SDCA this service offered by Tata Indicom, Garuda from MTNL, Reliance et all. On the other hand, GSM(Provided by Airtel, Hutch, Idea, Spice, Escotel etc) is 'Complete Mobile Service' gives you freedom to stay in touch wherever you go within your city across the

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country or around the globe-on a single number CDMA( or Code Division Multiple Access) is a mobile standard that is used in a some part of the world. In India, WLL mobile, services brought with CDMA mobile standard, and hence some operators referring to it as "CDMA" mobile. A correct way of refer to this service should be "Limited Mobile or WLL Mobile "using CDMA standard. Speaking from statistics in 2001, 78% of the world's mobile users went on GSM as compared only 22% on CDMA standard. It estimated that GSM is more popular than CDMA. So with CDMA mobile you forget the benefit of "Cadr Dalo", say Hello also if you like your friends phone model, you just can't go & buy a new handset & ready to flash around your new gizmo-al in a matter of 10 minutes as in GSM. In CDMA before you get ready to flash, you will be at therapy of operator. So forget a-new-model a month mantra in CDMA catches up. In current from it is acceptable in the areas where it is up. Remember in beginning days of GSM voice clarity & coverage was an issue too, which got resolved over time. On CDMA SM Sing is possible, but the legality of this is still an issue. And in today's Mobile culture SM Sign is importance. You can send SMS from CDMA to CDMA, but not from CDMA to GSM & Vice Versa in all cases. It reslly is dependent on the two operators in question. On CDMA, mobility outside of SDCA is still an issue and is no hassle free and seamless. Also, CDMA newer technology in India and we have not knowledge about it's flaws as of now while GSM has already undergone those teething troubles way back in 1995-96.

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SWOT ANALYSIS

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SWOT ANALYSIS OF RELIANCE COMMUNICATIONS

STRENGTH:

1. Company's reputation:

Reliance Communications Limited is the group- the largest fastest growing most valuable business group, has a strong Brand Value in Market .

Reliance has established a considerable and enviable track record in project execution and project management Reliance has already demonstrated its ability to create a strong franchisee in completely a new service industry- cellular operations.

2. Market Share:

Reliance makes significant contributions to the Indian Economy on various parameters. The reliance group turnover stands at Rs. 62000 crores with exports of Rs. 9370 crores. It contributes 3% of India's GDP, 5% of India's total exports and 5% of India's Tax revenues.

3. Product Offerings The ongoing plans and schemes especially Simply Reliance .

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WEAKNESS

1.Poor signal strength and Coverage in certain regions.

2.Large processing time of Customer Complaints.

OPPORTUNITIES

1.Can attract and retain more customers by improving on Network (Signal Strength),Customer Care and Connectivity.

THREAT

1. National presence of BSNL .

2. Entry of New players in market like Uninor ,Tata Diokomo and

Virgin which are offering attractive plans and schemes to the

Customers.

3.Tough Competition with Airtel.

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THE PRODUCT

In the year 2004 Reliance infocomm introduced the Fixed Wireless Terminals (FWT) in order to capture the large market of the STD and PCO that are mushrooming at that time. The product proved to be a revolution as the product was easy to obtain and installation was quiet easy and quick. This quality of the new FWT proved to be a boon. The connections were readily available and could be installed just with the help of the battery and power supply. There was no need to lay the wire and the people could start up their own STD on a few days time. They did not want to wait for the long time to get the connections from BSNL. The lower call rates from Reliance were another added feature for the new operators. The lower the call rates meant more profit margins for the operators. Thus the introduction of the FWT revolutionized the world of STD and PCO owners. Firstly the post paid FWT were introduced in the market. Soon they were replaced by the pre-paid connections. This allowed the operators to keep the track of their earnings. Sometimes when the calls dropped the operator could check their account balance so that he could charge the customer accordingly. The recharge vouchers are available in various denominations for the convenience of the customer this was also beneficial for the customers who had the faced problems with the wrong billing.

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FWT Features

Connect to standard telephone*/cordless

Just connect the Reliance Fixed Wireless Terminal to your existing telephone instrument or your favourite cordless and go wireless to enjoy a hassle free fixed line service.

Connect to PBX
You can connect the Reliance Fixed Wireless Terminal to your PBX enabling multiple extension users in your office to share the connection, thereby ensuring that you gain maximum benefit out of the Reliance Tariff Plans

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Reliance Fixed Wireless Terminal has an integrated modem for internet access. You do not need a separate ISP connection. Just log on to the Reliance network and access Internet at peak data speed up to 115 kbps.

Use R-Connect Kit for connecting the PC to the Reliance-FWT.

Ensure that the distant between the point of Reliance-FWT installation and the PC is less than 3 meters.

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Parallel connection facility

Reliance Fixed Wireless Terminal has two voice ports to connect two telephone instruments to be used as parallel connection.

Secure tap proof connection

Reliance Fixed Wireless Terminal offers a secure connection that cannot be tampered with or tapped by unauthorised persons.

3waycallconference The call conference facility lets you talk to 2 people at the same time. Speed Enables you to speed dial 30 numbers. Voice mail Facility dialing

Allows the caller to leave a message when you are busy or unreachable.^ Hotline Programme your phone to automatically dial a specified number when you pick

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up the receiver without having to dial Call restrict / call lock

Allows you to prevent misuse by locking your phone. You can also programme STD / ISD restriction on it. Call wait / call hold

Intimates you about an incoming call when you are on another call. Also lets you switch between calls. Call divert

Divert your calls to voice mail or other number of your choice when busy or unreachable. Alarm Built-in alarm to remind you whenever you need.

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PRODUCT OFFERINGS
1. Tariffs

2. Top Ups

3. Plans

3.1 Day Calling

3.2 Night Calling

4. Validity

5. Cost of SIM Card

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RESEARCH METHODOLOGY

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Research Methodology is a way to systematically solve the research problems. It may be understood as a science of studying how research is done scientifically.

TYPE OF RESEARCH

DESCRIPTIVE RESEARCH:-

It is a type of descriptive research because in this

research sample is taken out and to make statements about the population on the basis of the sample analysis.

SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or procedure the researcher would adopt in selecting items for the sample. In this research the sampling design is as follows:-

Universe:- Universe in this research is the total retailers in the Meerut city who sells the
GSM Services of various telecom operators and the total customers in Meerut city who are GSM Service users.

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Sampling Unit:- Sampling unit in the research are those retailers who sells the RIM
GSM Service & customers are those who use RIM GSM Service.

Size of the Sample:- Sample size has been 38 retailers and 100 customers.

Sample Type:- It is a type of Area sampling because in this research sample is taken
on area basis

Area covered for Research:-

For Retailers
P.L Sharma Road Abu Lane Razban Bazaar.

For Customers
Ganga Nagar (A , B , C ) Blocks

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OBSERVATIONAL DESIGN Methods of Collecting Data:Data is collected by conducting a survey on the

retailers who sell GSM Services and customers who use GSM Services .

Instrument:-

Data is collected by the Questionnaire. It consist of closed ended

questions on some different parameters .

Type of Data:-

(1.) Primary Data:basis of questionnaire.

Primary data is collected through retailers and customers, on the

(2.) Secondary

Data:-

Companies documents, various journals, pamphlets and

companies portals, companys website, etc. were studied for relevant information regarding the subject of the projects. These documents were very useful for theoretical, conceptual and organizational Background. On the basis of detailed analysis of information and data collection. From these documents, it has been possible to complete the task

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STATISTICAL DESIGN

Measurement & Scaling techniques:- Following techniques are used: 1.Semantic Differential Scale: Used to measure attitude in terms of direction and intensity.
It consist of a number of statements which express either a favourable or unfavourable condition attitude towards the given object. In the questionnaire five types of statements for the customers are mentioned on the basis of their favourableness, which are Satisfied Very Much, Satisfied Some What, Neutral ,Dissatisfied Some What ,Dissatisfied Some What . For calculating these qualitative values in the quantitative values, Ratings are: 5 Marks for Satisfied Very Much 4 Marks for Satisfied Some What 3 Marks for Neutral 2 Marks for Dissatisfied Some What 1 Marks for Dissatisfied Very Much

2. Correlation Analysis: To establish a relationship between different parameters. Respondents:Respondents are the retailers in the given area who sells the GSM

Services of various telecom operators and customers who use the GSM Services .

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RESEARCH OBJECTIVES

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RESEARCH OBJECTIVES 1. To Know the Buying Behaviour of Consumers for RIM - Product Offerings - SMS Packs - Value Added Services 2. Comparitive analysis of RIM viz-a-viz major competitors. Based on retailers and consumers response. - Brand (Awareness) - Promotion (Advertisement) - Service (Customer Care) - Connectivity - Network (Coverage Area) 3. To know : - The relationship between Income Level and Amount of recharge . - Liking for VAS and Age group - Satisfaction level of customers for Services of RIM - Reasons for purchase of RIM SIM Cards.

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DATA INTERPRETATION FOR RETAILERS

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1. WHAT ARE THE REASONS OF CHOOSING RIM OVER OTHER

TELECOM OPERATORS. Brand Promotion Service Connectivity Network(Coverage Area)

(awareness) (Advertisement) (Customer Care) 34.21% 26.32% 18.42% 13.15%

7.9%

X - AXIS : Reasons of choosing RIM Y - AXIS : Response from Retailers

35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

Brand(Awareness) Promotion (Advertisement) Service(customer Care) Connectivity Network(Coverage Area)

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DATA INTERPRETATION
Retailers said customers prefer RIM as it is an established company and has the value in the market followed by 10 respondents who said customers are attracted by the extensive promotion of tariffs and plans.7 Retailers opted for RIM because of good Customer Care provided by them.5 Retailers felt that Connectivity of RIM is better than other operators. Only 3 said that Network is good for RIM.

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2. RATING(on the scale of 1 to 5) OF OPERATORS ON THE BASIS OF

- Brand (Awareness) :

- Promotion (Advertisement) : - Sevice (Customer Care) - Connectivity : :

- Network (Coverage Area) :

SCALE :

1.Very Poor 2. Poor

3. Average 4. Good

5.Best

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DATA ANALYSIS POINTS 1 VERY POOR 2 POOR 3 AVERAGE 4 GOOD 5 BEST 0.1 0.2 0.3 0.4 0.5

OPERATORS Airtel Reliance Idea Vodafone Others

POINTS 5 3.5 1.4 1.3 0.5

OVERALL RATING 1 2 3 4 5

Reliance India Mobile has been ranked as 2nd best operator among others by the retailers.

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3. WHY DO CUSTOMERS PURCHASE MORE OF RIM .

Product(Offerings) 23.68% SMS Packs 42.11% Value Added Services 34.21%

23.68% 34.21%

Product (Offerings) SMS Packs VAS

42.11%

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DATA INTERPRETATION Majority of the Retailers said that RIMs Product (Offerings) are the best so maximum customers prefer it. Since SMS Packs are most attractive so customers prefer to choose RIM over other telecom operators. VAS of RIM also attracts the customer to opt for RIM.

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4. HOW WOULD YOU RATE OPERATORS (on the scale of 1to 5) ON THE
BASIS OF CUSTOMER COMPLAINTS.

Operators Ratings

Airtel 5

Reliance 3

Idea 4

Vodafone 2

Others 1

SCALE:

1.VERY HIGH 2. HIGH

3.AVERAGE 4.LESS

5.VERY LESS

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DATA INTERPRETATION

Retailers said that customers face an average problem with Reliance.

5. WHAT ARE THE CUSTOMERS PREFFERENCE FOR RECHARGE. easy-RECHARGE 63.15% COUPON 26.32% INTERNET 10.53%

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70.00% 63.15% 60.00% 50.00% 40.00% 30.00% 20.00%

26.32%

10.53%
10.00% 0.00% easyRECHARGE Coupon Internet

X-AXIS Y-AXIS

: Types of recharge : Retailers Response

DATA INTERPRETATION

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According to Retailers response maximum customers go for easy Recharge as they dont have want unnecessary botheration they face with coupon recharge. 10.53% Retailers said that very less number of customers opt for Internet to get their phones recharged as very less number of customers are aware of it.

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6. WHAT AMOUNT IS USUALLY IS PREFFERED BY

CUSTOMERS FOR RECHARGE. Upto 500 60.53% 500 1000 26.32% 1000 -1500 13.15%

70.00% 60.53% 60.00% 50.00% 40.00%

30.00%
20.00%

26.32%

13.15% 10.00% 0.00% upto 500 500-1000 1000-1500

X-AXIS: Recharge Amount Y-AXIS: Retailers Response

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DATA INTERPRETATION

According to Retailers response customers prefer to have small amount of recharge as majority are students who are dependent on their parents income. Very less number of customers prefer for large amounts especially those with higher incomes.

53

7. ARE YOU AWARE ABOUT THE SCHEMES OF RIM. YES 84.21% PARTIALLY 10.53% NO 5.26%

0.9 0.8

84.21%

0.7
0.6 0.5 0.4 0.3 0.2 10.53% 0.1 0 Yes Partially No 5.26%

: Retailers Response

54

DATA INTERPRETATION

Majority of the retailers were aware of the ongoing schemes of the RIM those who were not aware were the new entrants.

55

8. WHICH CONNECTION IS PREFFERED MOSTLY BY CUSTOMERS.

Pre Paid 81.58%

Post - Paid 18.42%

90.00% 81.58% 80.00% 70.00%

60.00%
50.00% 40.00% 30.00% 20.00% 10.00% 0.00% PRE-PAID POST-PAID 18.42%

X-AXIS: Connection Preference Y-AXIS: Retailers Response

56

DATA INTERPRETATION According to retailers mostly customers prefer to have Pre-Paid connections as they dont have freedom to choose the best ongoing plan with cheapest call rates.

57

DATA INTERPRETATION FOR CUSTOMERS

58

1.AGE WISE PREFERRENCE FOR TELECOM

OPERATORS. R-GSM 15-25 26-35 36-45 13 16 12 AIRTEL 4 4 9 6 22 IDEA 3 6 3 2 14 VODAF ONE 3 4 2 1 11 OTHER S 4 2 1 1 8

45 and Above 4 Total Users 45

DATA INTERPRETATION

Majority of students(15-25) preffered RIM because of the attractive night calling plans and lucrative SMS packs. Followed by Proffessionals who chose to have RIM because of cheaper call rates and no roaming charges. Few respondent of age group(45 above) to have AIRTEL as they Brand Loyal towards it and were satisfied with the good network and better customer care.

59

2.HOW MUCH AMOUNT DO YOU PREFER FOR RECHARGE.

Recharge Amount (in Rupees) Income Level (in Rupees) 0-10000 10000-20000 20000-30000 30000-40000 Upto 500 12 6 8 1 500-1000 1 2 7 2 1000-1500 1 1 1 3

60

DATA ANALYSIS
CO-RELATION OF BIVARIATE GROUPED DATA Upto 500 250 Income Level 0 10 10 20 20 30 30 40 dydx 5 15 25 35 -2 -1 0 1 f fdx fdx2 fdxdy -1 2 6 8 1 27 -27 27 29 24 6 0 5001000 750 0 1 2 7 10001500 1250 1 0 1 0 1 0 1 0 3 6 6 6 0 -2 -1 0 3 f 14 9 16 6 45 -21 33 29 dy -28 -9 0 6 -31 dy2 56 9 0 6 71

-1 2 12 0 0 0

61

FORMULA FOR CORELATION OF BIVARIATE GROUPED DATA N f dx dy ( f dx ) ( f dy )

r =
_________________________________________________________________

( N f dx dy ( f dx)2 N f dx dy ( f dy)2
r = 45 X 29 [ ( -2 ) ( -3)]

_______________________________ 45 X 33 441 45 X 71 (- 31)2 1365 651 _______________________________ 1485 441 3195 - 961

714 ________________________________ 1094 2234

714 ________________________________ 2332296 714 __________________________________ 1527.18 0.0046

62

DATA ANALYSIS

Though , there is positive correlation between Income Level and Amount of Recharge i.e as Income increases customers prefer to have large amount of recharge but still most of high Income Level customers do not prefer high amount for recharge as the value of correlation is farther from 1.

63

3.WHY DID YOU BUY RIM SIM. Product(Offerings) 42.22% SMS Packs 31.11% Value Added Services 26.67%

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

42% 31.11% 26.67%

Prod(Offer) SMS Packs

VAS

X- AXIS : Reasons of choosing RIM Y- AXIS : Customers Response DATA INTERPRETATION

Majority of the customers said that RIMs Product (Offerings) are the best so maximum customers prefer it then giving preference to SMS Packs and Value Added Services.

64

4.REASONS OF CHOOSING RIM OVER OTHER TELECOM OPERATORS.

Brand (Awareness)

Promotion (Advertisement)

Service (Customer Care) 17.78%

Connectivity

Network (Coverage Area) 6.67%

35.56%

26.66%

13.33%

0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05

35.56% 26.66% 17.78% 13.33%

6.67%

0 Brand(Awareness)

Connectivity(Coverage Area)

X AXIS : Reasons of choosing RIM Y AXIS : Customers Response

65

DATA INTERPRETATION

Majority of customers preffered RIM as it is an established company and has a strong brand value in the market followed by 12 customers who said customers are attracted by the extensive promotion of tariffs and plans.8 customers opted for RIM because of good Customer Care provided by them.5 customers felt that Connectivity of RIM is better than other operators. Only 3 said that Network is good for RIM.

66

5. WHICH VALUE ADDED SERVICE OF RELIANCE YOU LIKE THE MOST. a) R - WORLD Age Group 16 25 26 35 36 45 46 Above Liked 7 9 8 1 Neutral 4 5 3 0 Not Liked 2 2 2 1

10 9 8 7 6 5 4 3 2 1 0 16 25 2 4 7

9 8

Liked Neutral 3 2 2 1 0 1 Not Liked

26 35

36 45

46 Above

67

Calculation of Correlation To know relationship between Age Group and Liking for R World. Formula for calculating Correlation
[ (X - X) (Y - Y) ] ____________________________ r = ( X - X )2 ( Y - Y )2

Where X = Age Group Y = Response X = Mean of Age Group Y = Mean of Response

- 68.144 r = _________________________________

4717.91

117.58

- 68.144 __________________________________ 68.7 X 10.84

- 68.144 _________________________________ 744.70

- 0.09

Hence there is a high degree of negative correlation between Age - Group and liking for RWorld i.e as age increases liking for R - World decreases.

68

b) R - CONNECT Age Group 16 25 26 35 36 45 46 Above Liked 3 5 5 2 Neutral 4 3 3 2 Not Liked 6 8 4 0

9 8 7 6 5 5 4 4 3 2 1 3 3 6

5 4 3 2 2

Liked Neutral Not Liked

0 0 16 25 26 35 36 45 46 Above

69

Calculation of Correlation To know relationship between Age Group and Liking for R Connect. Formula for calculating Correlation
[ (X - X) (Y - Y) ] ____________________________ r = ( X - X )2 ( Y - Y )2

Where X = Age Group Y = Response X = Mean of Age Group Y = Mean of Response

- 163.134 r = _________________________________ 4717.91 131.8005

- 163.134 __________________________________ 68.7 X 11.48

- 163.134 _________________________________ 788.70

- 0 .206

Hence there is negative correlation between Age - Group and liking for R - Connect i.e as age increases liking for R - Connect decreases.

70

c) VOICE - MAIL Age Group 16 25 26 35 36 45 46 Above Liked 8 7 4 2 Neutral 3 7 6 1 Not Liked 2 2 2 1

9 8 7

8 7 7 6

6 5 4 4 3 3 2 1 0 16 25 26 35 36 45 46 Above 2 2 2 2 1 1 Liked Neutral Not Liked

71

Calculation of Correlation To know relationship between Age Group and Liking for Voice - Mail. Formula for calculating Correlation
[ (X - X) (Y - Y) ] ____________________________ r = ( X - X )2 ( Y - Y )2

Where X = Age Group Y = Response X = Mean of Age Group Y = Mean of Response

- 6.466 _________________________________ 4717.91 107.800

- 6.466 __________________________________ 68.7 X 10.38

- 6.466 _________________________________ 713.2

- 0.009

Hence there is a very less degree of negative correlation between Age - Group and liking for Voice - Mail .

72

d) 3 WAY CALL CONFERENCING Age Group 16 25 26 35 36 45 46 Above Liked 6 8 3 2 Neutral 4 4 7 1 Not Liked 3 4 2 1

9 8 8 7 6 5 4 4 3 3 2 2 1 1 1 0 16 25 26 35 36 45 46 Above 2 3 4 4 Liked Neutral Not Liked 6 7

73

Calculation of Correlation To know relationship between Age Group and Liking for Voice - Mail. Formula for calculating Correlation
[ (X - X) (Y - Y) ] ____________________________ r = ( X - X )2 ( Y - Y )2

Where X = Age Group Y = Response X = Mean of Age Group Y = Mean of Response

17.556 r = _________________________________ 4717.91 117.78

17.56 __________________________________ 68.7 X 10.85

17.56 _________________________________ 745.5

0.02

Hence there is a positive correlation between Age - Group and liking for Conferencing.

74

6. ARE YOU SATISFIED WITH RIM

Parameters

Satisfied Satisfied Very Some Much What 10 8 5

Average

Dissatisfied Dissatisfied Some What Very Much 8 10 13 16 12 15

Service(Customer 8 Care) Connectivity 6 Network (Coverage Area) 3

13 9 9

18 16 14 12 10 8 6 4 2 0 Satisfied Satisfied Very Much Some What Average 3 8 6 10 8 5 13 13 10 8

16

15

12 Service(Customer Care) Connectivity Network (Coverage Area)

9 9

Dissatisfied Dissatisfied Some What Very Much

75

DATA ANALYSIS

DIFFRENTIAL SEMANTIC SCALE : To determine satisfaction level of consumers.

For this we divide consumers response into 5 categories: Categories Satisfied Very Much Satisfied Some What Average Dissatisfied Some What Dissatisfied Very Much Rating 5 4 3 2 1

Categories : 945-1125

Satisfied Very Much

765- 945 Satisfied Some What 585- 765 Avearge 405- 585 Dissatisfied Some What 225- 405 Dissatisfied Very Much Since Grand Total of Likert Scale is 365 ,which is lying in the category of Dissatisfied Very Much. So, it can be concluded that Customers are not satisfied with RIM Services especially Network and Connectivity.

76

9. HOW DID YOU COME TO KNOW ABOUT RIM.

Retailers 31.11%

T.V 22.22%

Newspaper 17.77%

Friends 13.33%

Internet 11.11%

Radio 4.44%

4.44%

11.11%

RADIO INTERNET FRIENDS NEWSPAPER T.V RETAILERS

31.11%

13.33% 17.77%

22.22%

77

DATA INTERPRETATION

Major source of awareness among consumers are Retailers followed by T.V, Newspapers ,Friends .Internet is least used as a source of awareness.

78

FINDINGS

79

RETAILERS POINT OF VIEW

1. Brand ( Awareness is the major reason of choosing RIM over other telecom operators. 2. RIM is ranked as 2nd best operator. 3. Customers purchase RIMs because of attractive Product (Offerings). 4. Customers faces average problem with RIM . 5. Majority of customers prefer e Recharge 6. 84.21% of retailers are aware about ongoing schemes of RIM 7. Majority of customers prefer Pre Paid Connection.

80

CUSTOMERS POINT OF VIEW

1. Maximum customers of RIM belong to age - group of 26 - 3 5 followed by age group of 16 - 25 which mainly consists of students . 2. Majority of customers prefer for lesser amount of recharge. 3. 42.22% customers purchase RIMs SIM because of Product (Offerings). 4. Age - Groups 26 - 35 and 16 - 25 like VAS of RIM very much as compared to other age - groups. 5. Majority of RIM users were very much dissatisfied with the Network (Coverage Area) and Connectivity. 6. Retailers are the major source of awareness among the RIM users.

7. Reliance India Mobile schemes are providing main help to the low income range of people .

81

SUGGESTIONS

82

1.EXTENSIVE NETWORK COVERAGE

There are many areas in Meerut Zone which do not have network coverage of Reliance, reason may be because there is not much of user concentration, but there are customers who travel to these area and feel disappointed because of no or poor network coverage. Company should ensure that there is no lack of connectivity and coverage is more extensive, major focus on corporate connection makes it further more imperative for the company to ensure that all the major areas have good network coverage as corporate customers are expected to travel a lot across Meerut Zone. We also came across the fact that company has lot of customer initially due to lack of network coverage when it first started its operation in Meerut Zone so many of the corporate customers have this view that Reliance does not have reliable service, in order to get over this perception it is important to provide an extensive network coverage.

2.

CUSTOMER

LOST

INITAILLY

DUE

TO

POOR

NETWORK

COVERAGE SHOULD BE RETAINED

When Reliance was launched in Meerut Zone lot of customers were unsatisfied of network coverage of the company and the quality of services, which was understandable because Reliance had to start from scratch, but now as the Reliance has reached point where it can ensure reliable service. It should start a marketing (promotional) campaign targeting such customer, make them aware of the growth of Reliance in Meerut Zone and ensure them that coming into Reliance fold

83

would be a more satisfying experience then before. What we feel that retaining the customers will be much easier and Reliance must be having records of such customers. We met lot of such people in Ganga Nagar area who said that they relinquished their numbers after they found out that network coverage was not good. Being a service company word of mouth is very important in such a situation it is very important to ensure that the customer should at least be made aware of what Reliance has achieved till now, so that they don't act as influencer against Reliance for potential customers.

3.CONNECTIVITY SHOULD BE IMPROVED

Poor connectivity and Voice clarity are the major factors that should be improved. RIM should aim at improving signal strength , reducing call failure ,call drop downs and call conjunction during peak time.

4. CUSTOMER CARE SHOULD BE THE FOCUS

Customers care Most of the respondents stated that bad after sales services and customer support are one of the important factors leading to dissatisfaction. Customers are expected to be very demanding as the industry is very competitive. Reliance is a service-based organization, every point of customer contact creates an impression about the company and the quality that it delivers, and it becomes imperative for the company to

84

deliver on this front. It our survey we found the lots of respondents were dissatisfied with the customer care service of Reliance. Merely a satisfied customer will not ensure a long-term loyalty, to ensure that customer should be completely satisfied a good customer care department and after sales service is important and must, efforts should be made to improve it further, so it is important to provide good customer care service.

5.UPGRADATION OF VALUE ADDED SRVICES

Many customers were dissatisfied with the R Connect facility of RIM because of low Internet speed .Also many were complaining about the disturbances while Conferencing. Thus , steps to improve and upgrade these services can be very beneficial to retain more customers . More features in R World should be added. Charges for Voice Mail facility can be brought down to attract more customers.

6.MORE

ATTRACTIVE

PLANS

AND

SCHEMES

SHOULD

BE

LAUNCHED
Although RIM have the one of the best plans and schemes but it should more varied plans and schemes targeting those segments which dont find anything for them .

85

7.CUSTOMERS

SHOULD

BE

MADE

AWARE

ABOUT

THE

RECHARGE FACILITY FROM INTERNET.

As no other operator is focusing on this issue RIM can take it as an opportunity to make itself more popular in market among customers .Thus, it can be used as an aid for its promotion.

8. SELLING STAFF
Reliance also has a good selling staff, as most of the respondents were aware of the reliance products, which signifies frequent visits by the sales of reliance.To keep them motivated incentives and bonuses should be given .

86

CONCLUSION

87

Perpetual change in business has made inevitable for every business organization to do environmental scanning, so that it may be able to cope with the latest changes in their respective field of business & to move with the pace of the industry. The mobile Phone industry has changed during last five years. The market has been a very high level of competition in the field of mobile services. So it becomes very difficult to mobile service provider companies to launch new offers in order to sustain in the economy & to earn profit. The mobile service market is now truly a buyers market, where a lot of variety is available. It is the customers who can make or ruin the fortune of any company in even a small period of time. Taking into consideration this fact a company should be fully devoted towards very basic concept of marketing, that is, customer oriented business. In broad sense major influential factors which motivate a consumer to buy a telecom product are Price , Network , Connectivity , Service ( Customer Care) and attractive Schemes. Since customers are not satisfied with the Network and Connectivity and averagely satisfied with Customer Care so company should take proper and immediate action about it as the negligence can affect sales of RIM in future.

88

LIMITATIONS

89

1. Reluctance on the part of customers to give correct answers. 2. Sample size and Sample area taken is too small. 3. Lack of time. 4. Hot and Humid weather conditions.

90

BIBLIOGRAPHY
Sources: Books
1Marketing management - Philip Kotler 2Research Methodology -C.R.Kothari

Internet
3Web Site Web Site www.relianceinfocom.com www.rcom.com

5. 6. 7.

Web Site

www.telecomwatch.com

Business Magazines

91

ANNEXURE FOR RETAILERS

1. Reason of choosing RIM over other telecom operators. - Product (offerings) - Connectivity - Network (coverage area) - Service (customer care) - Brand (awareness) - Promotion (advertisement)

2. How do you rate the following operators. Airtel ,Reliance, Idea , Vodafone , Others - Connectivity - Network (coverage area) - Service (customer care) - Brand (Awareness) - Promotion (advertisement) 3. Preference for operators on the basis of - Product (Offerings) - SMS Packs - Value Added Services

92

4. Rate operators on the basis of customer complaints. - Airtel - Reliance - Idea - Vodafone - Others 5. Preference for recharge. - Coupon - e-recharge - Internet 6. Amount usually preferred for recharge (denomination).Specifically for reliance. - Upto 500 -500-1000 - 1000 1500

7. Are you aware about the schemes of RIM. - Yes - No 8. Which card is preferred mostly by the customers. - Pre-Paid - Post-Paid

93

ANNEXURE FOR CUSTOMERS

1. Name of Respondent

Mr/Mrs/Miss. . . . . . . . . . . . . 2. Age

i)15-25 ii)26-35 iii)36-45 iv)46-above 3. Occupation

i)Govt. Service ii)Private Sector iii)Business iv)Professional v) Student

4. Income Level (Monthly)

94

i) 2000-5000 ii)5001-10000 iii)10001-15000 iv)15001-20000 v)More than 20000 5. How much amount do you prefer for recharge i) Upto 500 ii) 500 1000 iii) 1000 1500 6. Why did you buy RIM sim i) ii) iii) Product (Offerings) SMS packs VAS

7. Reasons for choosing RIM over other telecom operators i) ii) iii) iv) v) Brand (Awareness) Promotion (Advertisements) Service (Customer care) Connectivity Network (Coverage Area)

95

8. Which service of RIM you like the best i)Voice Mail ii)R-World iii)R-Connect iv)Conferencing

9.Are you satisfied with RIM?

Parameters

Satisfied Very Much

Satisfied Some What

Average

Dissatisfied Some What

Dissatisfied Very Much

Service(Customer Care) Connectivity Network (Coverage Area)

10. Which Media made you aware about RIM

96

i)T.V

ii)Radio

iii)Newspaper

iv)Internet

v)Friends

vi)Retailers

97