2009 A PROJECT REPORT ON A STUDY ON COUSTOMER SATISFACTION FOR REALIANCE MOBILE IN GWALIOR (M.P.

) A PROJECT REPORT SUBMITTED IN PARTIAL FULFILMANT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION IN APPLIED MANAGEMENT By

BRAJESH KUMAR RATHOUR E. NO. - 4740700318 Under the guidance of Dr. R. C. JAIN

ANNAMALAI UNIVERSITY DIRECTORATE OF DISTANCE EDUCATION ANNAMALAI NAGAR

CONTENTS DECLARATON AKNOWLADGEMENT CERTIFICATE PERFORMA OF GUIDE CONSENT FORM SUDMISSION OF PROJECT 1. 2. 3. Introduction Objectives Marketing research

4. 5. 6. 7. 8. 9.

Research Methodology Finding and Analysis Suggestions Limitations Conclusion Annexure

10. Bibliography

2009

DECLARATION

I hereby declare that the project entitled A Analytical Study of Sales Promotion Scheme of Big Bazaar in Gwalior (M.P.) submitted for the Degree of Master of Business Administration in Applied Management is my original work and the project has not formed the basis for the award of any degree, diploma, associate ship, fellowship or similar other titles. It has not

been submitted to any other university or institution for the award of any degree or diploma.

Signature of the Student

Place: Gwalior

Name: BRAJESH KUMAR RATHOUR

Date: 29/March/2009

Enrolment No.: 4740700318 Acknowledgement of the Student

It is with real pleasure that, I record my indebtedness to my academic Guide, Dr. R.C. JAIN for his counsel and guidance during the preparation of this project.

I am grateful to Centre Head Mr. R.C.Jain

I wish to record my sincere and special thanks to Mrs. Priyadarshni Nagoori, P.K.Vajpai.

Signature of the Student

Place: Gwalior Date: 29/March/2009

Name: BRAJESH KUMAR RATHOUR Enrolment No.: 4740700318

PREFACE Many managers think, marketing as a organizational department whose job is to analyze the market, discern opportunities, formulate marketing strategies, develop specific strategies and tactics, propose a budget and establish a set of control it can be considered as one of the main aim of marketing, but there is a more to marketing.

During this project I felt that market survey would be more beneficial for making decision and developing the marketing strategies and redefining it into a detailed

marketing mix and action plan. It involves carrying out plan, evaluating the result and making further improvements.

But management cant turn a blind eye on the implementation part of the action plan. So if management wants to get real benefit from plan then the feedback process should be more transparent and effective.

INTRODUCTION

The Company Management including Akhil Gupta, Joint MD, Bharti Airtel; & MD, Bharti Enterprises, Manoj Dhillon, CFO, Kohli,

President

CEO, Sarvjit Nishball,

DirectorEnterprise

Strategy, David

President,

Services, Sanjay

Kapoor,

President-Mobile

Services

and Atul Bindal, President- Telemedia Services . Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest cellular service provider with more than 75 million subscribers as of August 2008.[1] It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel broad band and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile,

broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides endto-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. SingTel owns over 30% of the Bharti Telecom Group.[2]

EXECUTIVE SUMMARY The project assigned to us is to study the financial health of Bharti Airtel Limited. The main purpose of the project is to analyze the Environment in which Bharti Airtel is operating. EIC - Environment Industry and Company analysis is done thoroughly to understand the external factors influencing the company. All various

ratios are calculated and analyzed in length to appreciate their impact on company performance. Dupont analysis is done to check the credibility of company as per shareholders, financial analysts and other mutual funds. The three financial statements of last three years are identified, studied and interpreted in light of company s performance. Critical decisions of distributing dividends, Issue of bonus Debentures and other current news are analyzed and their impact on the bottom line of the company is assessed. Accounting policy of the company is also studied with respect to valuation of Fixed Assets,Inventory, Investments and Employee related liabilities.

INDIAN TELECOM INDUSTRY Growth has characterized telecom sector throughout its history and increasing so in recent decade. Rapid technological development, innovation and diffusion have turned telecom into major economic growth. Indias move towards globalization, especially in the telecom sector, has to be driven by transparent policies and the better market conditions to attract foreign investments. Last couple of years have been years of growth and achievement with cellular mobile industry been growing at an exponential pace.

Since 2001, the world telecom industry has been caught in turmoil and experienced unprecedented frustrations .Telecommunications is now universally recognized as one of the prime movers of he modern economy. The telecom network in India is the fifth largest network in the world meeting upwith global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to Indias GDP.\

COMPANY PROFILE Bharti Airtel was established on July 07, 1995, as a Public Limited Company. It

provides mobile, broadband & telephone (fixed line) and enterprise services. It has got a very strong customer base. It Provides GSM mobile services in all the 23 telecom circles in India, and was the first private operator to have an all India presence. It Provides broadband (DSL) and telephone services (fixed line) in 94 cities in India. BHARTI AIRTEL is one of Indias leading private sector providers of telecommunications services based on an aggregate of 46,766,783 customers as on

July 31, 2007, consisting of 44,763,391 GSM mobile and 2,003,392 broadband & telephone customers.

The businesses at BHARTI AIRTEL have been structured into three individual strategic business units (SBUs) - mobile services, broadband & telephone services (B&T) &enterprise services. The mobile services group provides mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 94 cities.

The enterprise services group has two sub-units - carriers (long distance

services) and services to corporate. All these services are provided under the AIRTEL brand. Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of India Limited (NSE). The Indian

Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2007.According to Broadband Policy 2004, Government of India aims at 9

millbroadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004-2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are

primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.

BHARTI AIRTEL LIMITED Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group, has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched

Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management. Airtel comes to you from Bharti Airtel Limited, Indias largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) - mobile services, broadband & telephone services (B&T) & enterprise services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles

while the B&T business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand.Bharti Airtel serves over 82mn customers as of October 31, 2008; of whom 80,199,747 subscribe to GSM services and 2,549,043 use Telemedia Services either for voice and/or broadband access delivered through DSL. They are the largest wireless service provider in the country, based on the number of subscribers as of October 31, 2008. Bharti Airtel has a dominant position in the GSM services with a market share of 34.5 % as of September 2008.
[3]

Partners The company has a strategic alliance with SINGTEL. The investment made by SingTel is one of the largest investments made in the world outside Singapore, in the company. The companys mobile network equipment partners include Ericsson and Nokia. In the case of the broadband and telephone services and enterprise services (carriers), equipment suppliers include Siemens, Nortel, Corning, among others. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center

technology requirements. The call center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis.

Business Divisions

The Bharti Airtel Group Offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. Offers high speed broadband internet with a best in class network..

Factsheet

Name Business Description Established Proportionate Revenue

Bharti Airtel Limited. Provides mobile, broadband & telephone (fixed line) and enterprise services (carriers & services to corporates) July 07, 1995, as a Public Limited Company Rs. 184,202 million (year ended March 31, 2007-Audited) Rs. 117,255 million (year ended March 31, 2006-Audited)

As per Indian GAAP Accounts Rs. 74,407 million (year ended March 31, 2007-Audited) Proportionate Rs. 42,250 million (year ended March 31, 2006-Audited) EBITDA As per Indian GAAP Accounts Shares in Issue Listings The National Stock Exchange of India Limited (NSE) Market Approx. Rs1,597 billion. Closing BSE share price= Rs.842.50 Capitalisation 1,895,934,157 as at March 31, 2007 The Stock Exchange, Mumbai (BSE)

40,743,725 GSM mobile and 1,941,805 broadband & Customer Base telephone (fixed line) customers (Status as at month ended May 31, 2007) Provides GSM mobile services in all the 23 telecom circles in India, and was the first private operator to have an all India Operational presence. Network Provides broadband (DSL) and telephone services (fixed line) in 94 cities in India.

SHAREHOLDING PATTERN/OWNERSHIP

1st Quarter: 45.38% of the total shares were held by the promoter and promoter group. 54.62% of the shares were held by the public institutions.

2nd Quarter: 60.97% of the total shares were held by the promoter and promoter group. 39.03% of the shares were held by the public institutions.The shareholders belonging to the public category and holding more than 1% of shares were: Vodafone International Holding BV Citigroup Global Markets Mauritius Private Limited Morgan Stanley And Co International Limited Life Insurance Corporation Of India Under Various Scheme

The Growth Fund Of America Inc

3rd Quarter: 60.96% of the total shares were held by the promoter and promoter group. 39.04% of the shares were held by the public institutions.

4th Quarter: A major portion of the shares are held by the promoter and promoter group. They held 60.95% of the shares, the two promoters being Bharti Telecom Limited and Pastel Limited. The remaining 30.05% shares were held by non-institutions

OBJECTIVE OF RESEARCH STUDY

The objective of my research study is to find out Analyze the different factors that affect the buying behavior of mobile user. Once we understand these factors it become easy to make efficient strategy to compete with its competitors and to satisfy its users.

The study has several objectives. The main objectives of my research study are: 1. To find out & analyze the different factors that effect the buying behavior of mobile users. 2. To make the comparative study of these behavioural factors. 3. To measure the impact of behavioural factors on the purchasing power of user. 4. To know about the users expectations and their graviences. 5. To obtain suggestions from both customers and retailers. 6. To know about the views of customers and retailers about the existing mobile service providers.

7. To know the shortcomings of the company if any.

MARKETING RESEARCH

Marketing managers often commission formal marketing studies of specific problems and opportunities. They may request a market survey, a product preference test, a sales forecast by region, or an advertising evaluation.

Marketing research can be define as follows

Marketing research is a systematic design, collection, analysis, and reporting of data and finding to a specific marketing situation facing the company.

Effective marketing research includes five steps, which should be kept in mind to conduct a marketing research in an absolute manner.

1. Define the problem and research objective. 2. Develop the research plan. 3. Collect the information. 4. Analyze the information.

5. Present the findings.

CHARACTERISTIC OF A GOODMARKETING RESEARCH

1.

Scientific Method: Effective marketing research uses the principles of the scientific method: careful observation, formulation of hypothesis, prediction and testing.

2.

Research Creative: At its best, marketing research develops innovative ways to solve a problem: a closing company catering to teenagers gave several young man video cameras, other places teens frequent.

3.

Multiple Methods: Good marketing researchers shy away from over reliance on anyone method they also recognize the value of using two or three methods to increase confidence in the results.

4.

Interdependence of Models and Data: Good marketing researches recognize that, the data are interpreted from underlying modes that guide the type of information sought.

5.

Value of Information: Good marketing research show concern for estimating the value of information against its cost. Cost is typically easy to determine, but the value of research is harder to quantify.

6.

Healthy Skepticism: Good marketing researchers show a healthy skepticism toward glib assumptions made by managers about how a market works. They are alert to the problems created by marketing myths.

7.

Ethical Marketing: Good marketing research benefits both the sponsor company and its customers. The misuse of marketing research can harm or annoy consumers.

RESEARCH METHODOLOGY

The main objective of research is to find out the truth which is hidden and which has not been discovered. According to advance readers dictionary of current English, the definition of research is A careful investigation or enquiry especially through research for new facts in any branch of knowledge.

Still the ideal definition of research is an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, competition, and experiment. Research methodology is a way to solve the research problem systematically. It may also be defined as a science of conductive research. Research methodology has many dimension and research methods constitute a part of it.

My research process contents following steps.

1. The first step was to design a structured interview for the retailers and customer. This includes preparing questions for getting required information.

2. The next step was to see which area was to be covered under the survey. Which was assign by Mrs. Taruna Agrawal

3. The next step was to collect the required information.

4. The last step was to analyze the data and present the findings.

RESEARCH DESIGN

Research design means conceptual framework with which the research has to come in structured manner. The research design has to be prepared with keeping following points in the mind:

1. The means to obtain the information

2. The availability and the skills of the researcher and his staff.

3. The explanation of the way in which selected means will be organize and the reason responsible for their selection.

4. The time factor must be paid attention during the research.

5. The cost factor must also be taken with care. A researcher should first prepare a budget for the project and should move ahead along with the budget.

RESEARCH PLAN

1.

Description of the Coverage: I had to cover the area of Gwalior. I personally went to each outlet situated in the assigned area. I collected the necessary information from the each outlet, which I found to be important for the completion of my project.

2. Data Sources: Data can be further divided in to two types of data the primary data and secondary data. The primary data is the data which is directly

collected from the respondents and which is truly firsthand in nature. The secondary data is the data, which is collected from the magazines, newspapers, journals, and Internet etc. on the basis of types of data, data sources are also of two types. Primary data source and secondary data source.

3. Research approach: Field survey or market survey was found better to establish a fine approach to research. The two method of research, which is generally, used for the research namely census method or sample method.

4. Data Collection Tools: There are several techniques for collecting primary data, which are as follows.

Personal interview Questionnaire Schedules Correspondent

I preferred personal interview method for collecting information. For which I prepared a structured interview.

5. Sample Plan: Sampling is the most important part of any research design sample, which was assigned to me, was the Gwalior city. My sample was consisted of 40 retail outlets and 60 customers.

6. Contact Method: To get information contact is necessary. It can be either by telephone, by Internet, by mail, or by face to face contact. I preferred face-to-

face contact method or personal interview method. For collecting the primary data respondents were contacted on the shop directly. MARKETING

Today every one knows the general meaning of marketing. But in technically they interpret the term in the wrong way. In the sense of a layman it means buying a product from market. Therefore often mistakenly they use the term selling advertisement & promotion synonymously to the term marketing.

For a managerial definition marketing has often been described as the art of selling products but people all surprised when they hear that the most important part of marketing is not selling it is only the tips of the marketing iceberg. Peter Drucker a leading management theorist puts it this way.

There will always one can assume be needed selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells it. Ideally marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available.

The marketing concepts also make use of marketing mix

MARKETING MIX

FOUR PS Product Price Place Promotions

FOUR CS Customer solution Cost of Customer Convenience Communication

Product Mix

Price Mix

1. Product variety 2. Quality 3. Design 4. Features 5. Packaging 6. Size 7. Services 8. Warranties

1. List Price 2. Discounts 3. Allowances 4. Credit Terms

Promotion Mix

Place Mix

1. Sales 2. Promotion 3. Advertising 4. Sales force 5. Public relation 6. Direct marketing

1. Channels 2. Coverage 3. Assortment 4. Location 5. Inventory 6. Transport

\\

\\\\\

RETAILERS ANALYSIS Q.1. Which Service Providers Connection you provide?

a) Reliance b) Idea c) Airtel d) All

34% 10% 10% 40%

40% 35% 30% 25% 20% 15% 10% 5% 0% Reliance Idea Airtel All

Q.2. Which Connection do you prefer to sale?

a. b.

Reliance Idea

40% 30%

c.

Airtel

20%

40% 35% 30% 25% 20% 15% 10% 5% 0% Reliance Idea Airtel

Q.2. (a)

Reasons for the preferences

a. b. c. d.

Better Margin Customer Demand Product Features Others

30% 34% 26% 10%

35% 30% 25% 20% 15% 10% 5% 0% Better Customer Product Others

35% 30% 25% 20% 15% 10% 5% 0% Better Margin Customer Product Demand Features Others

Q.3 According to you, which factor affect-buying decision?

a. b. c. d. e.

Price Brand Product

40% 10% 20% 20% 10%

Value added services Shop Display

40% 35% 30% 25% 20% 15% 10% 5% 0% P B Pr Vas SD

Q.4 How would you evaluate (from 1 to 5) the current providers you work with on the following issues?

Scale 1 2 3 4 5 Very Poor Poor Average Good Very Good

FOR POSM SUPPORT

25 20 15 10 5 0 1 2 3 4 5

Reliance

Idea

Airtel

TRAINING SUPPORT

25 20 15 10 5 0 Reliance Idea Airtel 1 2 3 4 5

CLAIM SETTLEMENT

30 25 20 15 10 5 0 Reliance Idea Airtel 1 2 3 4 5

INNOVATION

30 25 20 15 10 5 0 Reliance Idea Airtel 1 2 3 4 5

PROMOTION

35 30 25 20 15 10 5 0 Reliance Idea Airtel 1 2 3 4 5

CUSTOMER ANALYSIS

Q.1 Age Group

a. b. c. d.

15-25 Years 25-35 Years 35-45 Years 45 Years and above

40% 51% 7% 2%

60% 50% 40% 30% 20% 10% 0% 15--25 25-35 35-45 45&above

Q.2.Occupation

a. b. c. d.

Student Service Business Professional

19% 26% 46% 9%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% S S B P

Q.3 Income Group

a. b. c. d.

Below 20000 20000 to 40000 40000 to 60000 More than 60000

18% 46% 21% 16%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Below 20000 to 40000 to 20000 40000 60000

More than 60000

Q.4.While purchasing mobile connection who influence your buying decision. a. b. c. d. e. f. Children Wife Parents Yourself Friends Retailers 7% 63% 12% 14% 2% 2%

70% 60% 50% 40% 30% 20% 10% 0% Chidren Wife Parents yourself Friends Retailers

Q.5.How do you come to know about the reliance product? a. Neighbours 2%

b. c. d. e. f.

Users Friends Newspaper Bill boards Advertisement

38% 6% 35% 2% 17%

2%

38%

6%

35%

2%

17%

40% 35% 30% 25% 20% 15% 10% 5% 0% Neighbour Friends Bill boards

Q.6.What features affecting your buying decision? a. b. c. d. e. f. g. Free outgoing calls (foc) 15% Free extra balance (feb) 8% Network quality (nq) 20% Local Call Connectivity (lcc) 22% SMS based Services (sbs) 4% Roaming facility (rf) 6% Price (Air time) (p) 25%

25% 20% 15% 10% 5% 0% FOC FEB NQ LCC SBS RF P

Q.7.Reasons behind having mobile

a. b. c. d.

Style Fashion Job Requirement

3% 56% 40%

To remain in contact with others Status Symbol 1%

60% 50% 40% 30% 20% 10% 0% Style Requirement Contact Status

SUGGESTIONS

There is a need of training to the persons who is directly involved in sales force.

To introduce new schemes for the retailers.

 To improve the Network Quality.

If a company will introduce free outgoing upto 30 sectors in reliance to reliance its will increase its market share.

To add some other facilities like to know the current position of Bank a/c, information about Railway Time Table.

To pay more attention on CRM.

LIMITATIONS

The main limitation was the small size of Customers & Retailers. It was to small a size to draw a valid & satisfactory conclusion about the universe.

 Some Customers & Retailers were not taking it seriously and they did not give real information.

Some customers did not give enough time.

The result cannot be considered as representative of Whole Gwalior.

CONCLUSION

After having gone through the whole process of preparing the work project on the Buying behavior of consumers towards mobile service provider in Gwalior

market. I have gained the knowledge of practical things. This was possible only after working in & studying the market. Earlier this project I knew the theoretical knowledge about the buying behavior but after this project I learned the practically of these factors on the behavior of consumers. Through this project I could understand the great difference among the various class of buyers & they behave differently because there requirements are different. This market research helped me to get a deep insight into the service and marketing strategies of the company.

As far as the competition is concerned Airtel is a new but there is a neck-toneck competition between the Reliance and Idea.

RETAILER QUESTIONNAIRE

Name : ____________________________________________________________

Address : __________________________________________________________

Phone/Mobile :_____________________________________________________

1.

Which service providers connection you provide?

a. Reliance

b. Idea

c. Airtel

2.

Which card do you prefer to sell

a. Reliance [

b. Idea [ ]

c. Airtel [

Why?

a. Better Margin

b. Customer Demand

c. Product Features

d. Other

3.

According to you which factor affect buying decision?

a. Price

b. Brand

c. Product (Basic Service)

d. Value Added Services

e. Shop Display 4.

How would you evaluate (From 1 to 5) the current providers you work with on the following issues?

Service POSM Training Claim Provider Support Support Settlement

Innovation Promotion

Scale=1=Very Poor, 2=Poor, 3=Avg., 4=Good, 5=Very Good.

5. What will be your suggestions for the mobile service providers?

CUSTOMER QUESTIONNAIRE

Name:

Address:

Phone / Mobile:

1. Age Group

a. 15-25 years [

b. 25-35 years

c. 35-45 years [

d. 45 and above

2. Occupation

a. Student

b. Service

c. Business

d. Others

3. Income Group

a. Below 20000

b. 20000 to 40000

c. 40000 to 60000

d. More than 60000

4. While purchasing mobile connection who influence your buying decision.

a. Children

b. Wife

c. Parents

d. Yourself

e. Friends

f. Retailers.

5. How do you come to know about the reliance product?

a. Neighbors

b. Users

c. Friends

d. Newspapers

e. Billboard

f.

Advertisement.

6. What features affecting your buying decision.

a. Free outgoing calls. b. Free extra balance. c. Network quality. d. Local call connectivity of M.P. and chattisgarh.

e. SMS based services. f. Roaming facility. g. Price (Airtime)

7. Reasons behind having mobile?

a. b. c. d.

Style / Fashion. Job Requirement. To remain in contact with others. Status Symbol.

BIBLIOGRAPHY

1.

Marketing Management

Philip Kotler

2.

Business World

3.

The times of India

4.

Hindustan Times

5.

Internet

6.

Business Today