Summer project report

On

The Marketing Strategy of Rim Prepaid

Submitted as a project report in partial fulfillment of the

degree of
Master of Business Administration

Submitted To: Submitted By:

Ms. Lata Rani Ajay Kumar
MBA 3rd SEM
09272970004

1
 DECLARATION

I declare that the project report titled “The market strategy of

Rim prepaid” is an original work and this report has not
submitted earlier to this institute/ any other institute for the
fulfillment of requirement of the study. Any part of the project
if found to be invalid/duplicate or in case of plagiarism, I AJAY
KUMAR student of SRI RAM INSTITUTE OF
MANAGEMENT & TECHNOLOGY, GREATOR NOIDA is
ready to face the consequences.
This project is the property of the institute and any use of
project without the written permission of the institute will be
considered illegal.

(AJAY KUMAR)

2
 ACKNOWLEDGEMENT

A summer training project is an integral part of a MBA. It helps

the student to undergo a simulation test of what the student is
going to face in his future job sphere and a taste of practicality.
It helps the student to understand how an organization works.
The competitive atmosphere, the ups and downs in the cycle of
the organization, the enthusiasm of interacting with newer
people and gaining vast practical knowledge is what a summer
trainee goes through during his/her months in the organization.
My project in Reliance communication is an experience worth
sharing. The summer training project has enhanced my
managerial skills and made me apt to face all the hurdles in my
future.
The vast knowledge that I have gained in these two months
in Reliance Money, I have tried to put them down in this project
report. I am really thankful to Mr. Anuj Kumar srivastava City
Head Allahabad, Reliance Communication for constantly
mentoring my efforts and guiding me for making this project a
success.
I am greatly indebted to all my family members and friends for
their support and encouragement.

3
 PREFACE

As a student of MBA, one of the most reputed professional

courses, I consider it’s my privilege to thank all the persons
involved in the working of this project and their supervision
and guidance I have been able to complete this project. The
attractive feature of the MBA is that along with theory we
also get to have the exposure of the practical environment.
The entire journey from the very idea of this project report to
reality would not have been possible without guidance and
support of many people. The Project Report is based on
Systematic and Scientific search for pertinent information on
Specific Topic.

The Project Report revolves around the telecom

industry to explore the various aspects of mobile
technology. The certain objectives were predefined
and the task was to accomplish them.

The study was confined geographically to the set of

questionnaire was prepared & scrutinized before going for
market analysis.

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 TABLE OF CONTENTS

Contents Page

1. General Introduction 7

2. Company Profile 15

3. Project Study 22
4. Research Methodology 37

5. Data Preparation 69

6. Finding 107

7. Recommendation & Suggestions 111

8. Conclusion 113

9. Bibliography 115

10.Questionnaire 117

INTRODUCTION
5
 TO

TOPIC

Reliance Communications is the flagship company of the Anil Dhirubhai

Ambani Group (ADAG) of companies. Listed on the National Stock
Exchange and the Bombay Stock Exchange, it is India’s leading
integrated telecommunication company with over 85 million customers.
The Late 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 kilometres of a pan-
India fibre optic backbone. This backbone was commissioned on 28

6
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 wireline) 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
revolutionising the way India communicates and networks, truly bringing
about a new way of life.
RCom’s 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. The
company's constant endeavour is to achieve customer delight by
enhancing the productivity of the enterprises and individuals it serve.
Reliance Mobile (formerly Reliance India Mobile), launched on
December 28, 2002, coinciding with the joyous occasion of the late
Dhirubhai Ambani’s 70th birthday, was among the initial initiatives of
Reliance Communications. It marked the auspicious beginning of
Dhirubhai’s dream of ushering in a digital revolution in India. Today, we
can proudly claim that we were instrumental in harnessing the true power
of information and communication, by bestowing it in the hands of the
common man at affordable rates.

Business area of the company:

The company is mainly engaged into the businesses of, Wireless,
Broadband, Rural Communication, Reliance World, IDC, Carrier
Business and Infrastructure Business.
Reliance Mobile - With over 85 million subscribers across India,
Reliance Mobile is India’s largest mobile service brand. Reliance Mobile
services now cover over 20,000 towns, 5 lakh villages and counting.
Reliance Mobile World - The Reliance Mobile World suite of Reliance
Mobile is a unique Java-based application. Its uniqueness lies in the fact
that it enables complex Internet application to be introduced in mobile
phones effectively and quickly. Reliance Mobile World receives over 1.5
billion page views per month from Reliance Mobile users.
Broadband- The successful rolling out of real broadband services across
the nation marks the second chapter of Reliance Communications’
commitment to usher in a digital revolution in India.

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 • E-education
• Digital Workplaces
• E-healthcare
• Integrated Enterprise Solution
Rural Communication- Reliance Communications is committed to
bringing about a complete revolution in rural telephony. With this goal
set high on its agenda, it has initiated a mammoth expansion plan to
reach out to four lakh villages across the length and breadth of the
country.
• Village Public Telephone
• Rural Community Phone (RCP)
• Rural Household DELs
IDC- Reliance is India's largest Internet Data Center (IDC) service
provider, hosting business critical applications of Indian and foreign
blue chip companies, financial institutions and other importan t
organisations. Reliance Internet Data Centers are truly world class Level
3 (highest) IDC facilities, with more than 200,000 sq ft of hosting space.
Reliance World - Reliance World (formerly Reliance WebWorld) is a
world-class nationwide chain of retail outlets for products and services
of the Reliance – Anil Dhirubhai Ambani Group. It is designed to give
the customer a delightful experience of the digital world of information,
communication, entertainment and utility services.
Carrier Business - Reliance Communications is a National Long
Distance (NLD) and International Long Distance (ILD) service provider,
rendering national and international transport links between other
teleco mmunication service providers' networks. Its wholesale customers
include Indian and international telephony service providers, Internet
service providers, long-distance carriers, call centre operators,
multinational companies, business process outsourcing (BPO) companies,
IT- enabled service (ITES) providers and government and quasi-
government organisations.
Infrastructure Business - RTIL, a subsidiary of Reliance
Communications Limited, was incorporated in 2001 as a private limited
company. Reliance Communications Limited (“RCOM”) had filed a
Scheme of Arrangement with the High Court of Judicature at Bombay on
December 5, 2006 for the separation of its wireless towers assets owned
by RCOM and its wholly owned subsidiary Reliance Telecom Limited
(“RTL”). RTIL is an independent wireless telecommunications

8
infrastructure company in India, engaged in the business of building,
owning and operating communications towers and related assets
(together, “passive infrastructure”), which it will lease to the wireless
operators under long-term contracts.

Dhirubhai Ambani Biography

Born: December 28, 1932
Died: July 6, 2002
Achievements: Dhirubhai Ambani built India's largest private sector company. Created
an equity
cult in the Indian capital market. Reliance is the first Indian company to feature in Forbes
500 list
Dhirubhai Ambani was the most enterprising Indian entrepreneur. His life journey is
reminiscent
of the rags to riches story. He is remembered as the one who rewrote Indian corporate
history
and built a truly global corporate group.
Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at
Chorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai
Ambani started

9
his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar over the
weekends.
After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He
worked there
as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958
with Rs
50,000 and set up a textile trading company.
Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's largest
private sector
company, Reliance India Limited, from a scratch. Over time his business has diversified
into a
core specialisation in petrochemicals with additional interests in telecommunications,
information
technology, energy, power, retail, textiles, infrastructure services, capital markets, and
logistics.
Dhirubhai Ambani is credited with shaping India's equity culture, attracting millions of
retail
investors in a market till then dominated by financial institutions. Dhirubhai
revolutionised capital
markets. From nothing, he generated billions of rupees in wealth for those who put their
trust in
his companies. His efforts helped create an 'equity cult' in the Indian capital market. With
innovative instruments like the convertible debenture, Reliance quickly became a favorite
of the
stock market in the 1980s.
In 1992, Reliance became the first Indian company to raise money in global markets, its
high
credit-taking in international markets limited only by India's sovereign rating. Reliance
also
became the first Indian company to feature in Forbes 500 list.
Dhirubhai Ambani was named the Indian Entrepreneur of the 20th Century by the
Federation of
Indian Chambers of Commerce and Industry (FICCI). A poll conducted by The Times of
India in
2000 voted him "greatest creator of wealth in the century".
Dhirubhai Ambani died on July 6, 2002, at Mumbai.

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11
INFOCOMM BUSINESS

R elianec Infocomm offers a complete range of telecom s ervices s uch as

mo b ile and fixed line telephony including broadband, national an d

in ter n at ional long dis tance s ervices , data s ervices and a w ide range o f

v alu e added s ervices and applica tions that w ill enhance the productivity

o f en terpris es and individuals .

R eliance India Mobile , the firs t of Infocomm’s initia tives w as launched

o n D ecember 28,2002 the 70 t h birthday of Sh. D hirubhai A mbani.

R ELI A N C E GR O UP

R eliance group founded by S h. D hirubhai A mbani(1932-2002),India’ s

lar g es t bus ines s hous e w ith total revenues of Rs .80000 C r,C as h P rof it

o f o v er Rs .9800 C r, net profit of R s .4700 C r and Exports over R s .1190 0

C r f o r the las t financia l year.

R eliance group of companies cons is ts of: R eliance C apital Ltd . ,

R eliance Indus trial Infras tructure Ltd, R eliance M utual F un d

Ltd . , R eli ance Infocomm Ltd.,R eliance G eneral Ins urance Ltd.

12
C O V ER AG E

• 6 0 000 km of optic and fibre backbone that connects over 90% o f

p o pulation.

• Wireles s netw ork being rolled out in 600+ cities initia lly w ith plan

to expand to the entire mas s of India by 2008.

• 2 5 88 B as e trans receiv er s tations (B TS ) acros s the country focuss in g

w ir eles s netw ork.

13
COMPANY

PROFILE

14
 BOARD OF DIRECTORS

OF

RELIANCE COMMUNICATION

• MR ANIL D. AMBANI- CHAIRMAN

• Prof. J ramachandran- INDEPENDENT DIRECTOR

• MR RAJENDRA P. CHITALE- DIRECTORS

• MR C.P. JAIN- ADDITIONALDIRECTOR

KEY EXECUTIVE

15
MR V.R. MOHAN- COMPANY SECRETARY AND

MANAGER

Telecommunication

In the middle Ages, chains of beacons were commonly used on hilltops

as a means of relaying a signal. Beacon chains suffered the drawback
that they could only pass a single bit of information, so the meaning of
the message such as "the enemy has been sighted" had to be agreed upon
in advance. One notable instance of their use was during the Spanish
Armada, when a beacon chain relayed a signal from Plymouth to London
signaling the arrival of Spanish ships.
In 1792, Claude Chappe, a French engineer, built the first fixed visual telegraphy
system (or semaphore line) between Lille and Paris. However semaphore suffered
f r o m t h e n e e d f o r s k i l l e d o p e r a t o r s a n d e x p e n s i v e t o w e r s a t i n t e r v a l s o f t e n t o t hi r t y
kilometres (six to nineteen miles). As a result of competition from the electrical
telegraph, the last commercial line was abandoned in 1880.

Telegraph and telephone

The first commercial electrical telegraph was constructed by Sir Charles
Wheatstone and Sir William Fothergill Cooke and opened on 9 April
1839. Both Wheatstone and Cooke viewed their device as "an
improvement to the [existing] electromagnetic telegraph" not as a new
device.
Samuel Morse independently developed a version of the electrical
telegraph that he unsuccessfully demonstrated on 2 September 1837. His
code was an important advance over Wheatstone's signaling method. The
first transatlantic telegraph cable was successfully completed on 27 July
1866, allowing transatlantic telecommunication for the first time.
The conventional telephone was invented independently by Alexander
Bell and Elisha Gray in 1876. [ 6 ] Antonio Meucci invented the first device
that allowed the electrical transmission of voice over a line in 1849.
However Meucci's device was of little practical value because it relied
upon the electrophonic effect and thus required users to place the
receiver in their mouth to "hear" what was being said. [ 7 ] The first

16
commercial telephone services were set up in 1878 and 1879 on both
sides of the Atlantic in the cities of New Haven and London.

Radio and television

In 1832, James Lindsay gave a classroom demonstration of wireless
telegraphy to his students. By 1854, he was able to demonstrate a
transmission across the Firth of Tay from Dundee, Scotland to
Woodhaven, a distance of two miles (3 km), using water as the
transmission medium. [ 1 0 ] In December 1901, Guglielmo Marconi
established wireless communication between St. John's, Newfoundland
(Canada) and Poldhu, Cornwall (England), earning him the 1909 Nobel
Prize in physics (which he shared with Karl Braun). [ 1 1 ] However small-
scale radio communication had already been demonstrated in 1893 by
Nikola Tesla in a presentation to the National Electric Light Association.
[12]

On 25 March 1925, John Logie Baird was able to demonstrate the

transmission of moving pictures at the London department store
Selfridges . Baird's device relied upon the Nipkow disk and thus became
known as the mechanical television. It formed the basis of experimental
broadcasts done by the British Broadcasting Corporation beginning 30
September 1929. [ 1 3 ] However, for most of the twentieth century
televisions depended upon the cathode ray tube invented by Karl Braun.
The first version of such a television to show promise was produced by
Philo Farnsworth and demonstrated to his family on 7 September 1927.

Computer networks and the Internet

On 11 September 1940, George Stibitz was able to transmit problems
using teletype to his Complex Number Calculator in New York and
receive the computed results back at Dartmouth College in New
Hampshire. [ 1 5 ] This configuration of a centralized computer or mainframe
with remote dumb terminals remained popular throughout the 1950s.
However, it was not until the 1960s that researchers started to
investigate packet switching — a technology that would allow chunks of
data to be sent to different computers without first passing through a
centralized mainframe. A four-node network emerged on 5 December
1969; this network would become ARPANET, which by 1981 would
consist of 213 nodes.
ARPANET's development centred around the Request for Comment
process and on 7 April 1969, RFC 1 was published. This process is
important because ARPANET would eventually merge with other

17
networks to form the Internet and many of the protocols the Internet
relies upon today were specified through the Request for Comment
process. In September 1981, RFC 791 introduced the Internet Protocol v4
(IPv4) and RFC 793 introduced the Transmission Control Protocol (TCP)
— thus creating the TCP/IP protocol that much of the Internet relies
upon today.
However, not all important developments were made through the Request
for Comment process. Two popular link protocols for local area networks
(LANs) also appeared in the 1970s. A patent for the token ring protocol
was filed by Olaf Soderblom on 29 October 1974 and a paper on the
Ethernet protocol was published by Robert Metcalfe and David Boggs in
the July 1976 issue of Communications of the ACM. [ 1 7 ] [ 1 8 ]

A basic telecommunication system consists of three elements:

• A transmitter t h a t t a k e s information a n d c o n v e r t s i t t o a signal ;

• A transmission medium t h a t c a r r i e s t h e s i g n a l ; a n d ,
• A receiver t h a t r e c e i v e s t h e s i g n a l a n d c o n v e r t s i t b a c k i n t o u s a b l e
information.

For example, in a radio broadcast the broadcast tower is the transmitter,

free space is the transmission medium and the radio is the receiver.
Often telecommunication systems are two-way with a single device
acting as both a transmitter and receiver or transceiver . For example, a
mobile phone is a transceiver.
Telecommunication over a telephone line is called point-to-point
communication because it is between one transmitter and one receiver.
Telecommunication through radio broadcasts is called broadcast
communication because it is between one powerful transmitter and
numerous receivers.

Analogue or digital
Signals can be either analogue or digital. In an analogue signal, the
signal is varied continuously with respect to the information. In a digital
signal, the information is encoded as a set of discrete values (for
example ones and zeros). During transmission the information contained
in analogue signals will be degraded by noise. Conversely, unless the
noise exceeds a certain threshold, the information contained in digital
signals will remain intact. Noise resistance represents a key advantage of
digital signals over analogue signals.

18
Networks
A network is a collection of transmitters, receivers and transceivers that
communicate with each other. Digital networks consist of one or more
routers that work together to transmit information to the correct user. An
analogue network consists of one or more switches that establish a
connection between two or more users. For both types of network,
repeaters on a base station may be necessary to amplify or recreate the
signal when it is being transmitted over long distances. This is to combat
attenuation that can render the signal indistinguishable from noise.

Channels
A channel is a division in a transmission medium so that it can be used
to send multiple streams of information. For example, a radio station
may broadcast at 96.1 MHz while another radio station may broadcast at
94.5 MHz. In this case, the medium has been divided by frequency and
each channel has received a separate frequency to broadcast on.
Alternatively, one could allocate each channel a recurring segment of
time over which to broadcast—this is known as time- division
multiplexing and is sometimes used in digital communication.

P U RP O S E
We ar e w itnes s ing a kind of s ea change in IT related product marketin g

an d among the top companies w ho are in this field are R ELIA N C E

I N FO C O MM LTD .

We all know that the mobile indus try is rapidly grow ing in our countr y

an d th e future of mobile companies are very bright as w e are in the ver y

th r es h hold of mobile revolution.

C o mp aring C hina w e are s till far behind the ratio of mobile phone us er s

p er th ous and and the indus try is predicting that there w ould be over 10 0

millio n mobile phone us ers in India by year 2008.

19
Th e p urpos e of the s tudy is to unders tand the competi tion pos ed b y

v ar io u s GS M and WILL s ervices providers in U.P . (Eas t) and to analyze

th e p r oces s of covering the major chunk of the market s egments o f

M o b ile phone us ers of the area.

R eliance Infocomm is a major player and fas t becoming a force to

r eck o n w ith in U .P . (Eas t) already is having 3 lac s ubs cribers in th e

ar ea.

Aim
To understand the Marketing Mix Strategy of the RIM PREPAID.

Objectives

• To analyze the buying behavior of the market s egment vis -à- v is

marketing mix s trategy of R IM -P R EPA ID .

• To meas ure the efficien cy of the marketing mix s trategy of

co mpeti tors for prepaid s ervices .

• To analyze the 4 Ps of the after launch campaign has prepaid

s er vices .

• Wh at are the reas ons for the s low grow th for prepaid s ervices ?

• Wh at are the s pecific buying pattern of the middle income group?

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• Wh ether the launch of R IM -P R EP A ID had helped R eliance improv e

th eir market s hare in the area?

PROJECT

STUDY

21
MARKETING STRETEGY OF RIM- PREPAID

ANALYSIS AND EVALUATION

Th e central mis s ion of this project w as to analyze the grow th of th e

M ar k et S hare of the R eliance Infocomm Ltd. B y analyzing the mark et

s tr ategy in A llahabad city w ith res pect to other s ervice providers o f

mo b ile phones .

Th e r eport is ventured upon to give a pers pective of how the middle

in co me and the firs t time Us ers buy a mobile phone connection an d

th eir buying pattern. The s urvey ins trument us ed by us bas ically

co n s is ts of s urvey ques tions , w hich are open and end type in which w e

h av e tried to seek res pons es from the w alk-in cus tomers at variou s

o u tlets and meeting people at various shopping malls and res idential

lo cali ties .

I n a n uts hell I can s ay that each and every part of the report has been

mad e in s uch a w ay that it covers the entire s pectrum of relevant facts

an d d ata related to the mobile market in A llahabad.

I n s p ite of my bes t efforts , w e feel that the report may admit

p o s s ibilities of further improvement for w hich I w ould happy an d

g r atef ul to receive s ugges tions and advice from my s eniors and all.

22
BREIF DESCREPTION OF RIM COMMUNICATION

2008
• January 12 - Reliance Communications receives Start-up GSM
Spectrum
• January 16 - Yahoo partners with Reliance Communications to
provide Yahoo One Search for its CDMA and GSM customers.
• January 31 - RCOM's Q 3 Net Profit increases by 48.5% and
Revenues Up by 29.8 %. Remains the most profitable Telecom
Company in India.
• February 4 - Reliance Communications offers Lifetime Validity at
Rs 199
• RCOM’s subsidiary Infratel files Draft Red Herring Prospectus
with SEBI
• February 5 - Reliance Mobile strengthens its religious content
portfolio on Mobile by tie-up with Sadhana TV
• February 14 - RCOM in partnership with CanvasM, launches
Mulitplayer Mobile Games
• February 19 - HDFC Bank ties up with RCOM, turns every
Reliance Mobile into a credit card
• February 27 - Reliance Communications consolidates Global
Telecom Business under “Business Globalcom”
• Reliance Communications forays into International Mobile Market
with GSM License in Uganda.
• March 3 - Reliance Communications drops prices of Internet Data
Cards
• March 10 - Reliance Communications announces ESOPs for over
20,000 employees
• March 20 - Reliance Communications and HTC forge Strategic
Alliance
• March 27 - Corporation Bank Launches Banking Services on
Reliance Mobile World
• April 1 - Reliance Communications forays into IT space, launches
Reliance Technology Services Company

23
 • April 9 - RCOM launches Educational Portal on Reliance Mobile
Phones
• April 25 - Reliance Globalcom unit Reliance Infocom BV,
Netherlands acquires Global WiMAX Operator eWave World
• April 29 - Reliance Communications Announces Unlimited Free
STD calls
• April 30 - Reliance Globalcom Launches Passport Global SIM
• RCOM's Net Profit up by 70.8% to Rs 5,401 crore
• May 2 - Reliance Communications’ Net Profit up by 70.8% to Rs
5,401 crore (US$ 1,350 million), Revenues higher by 31.8% to
Rs.19, 068 crore (US$ 4,765 million) and EBIDTA increases by
43.3% to Rs.8, 199 crore (US$ 2049 million)
• May 12 - Reliance Communications and Alcatel form Joint Venture
to offer Managed Network Services to telcos across the globe
• May 26 - Reliance Globalcom acquires UK based VANCO Group
Limited
• June 24 - Reliance Globalcom, Stealth Communications forge
Strategic Alliance to extend VOIP Network across 50 countries
• July 12 - CA Exam Results on Reliance Mobile
• July 22 - Reliance Communications Mobile Subscriber base crosses
50 Million
• July 29 - CA Professional Exam Results on Reliance Mobile
• July 31 - Reliance Communications (RCOM) announces its
financial results for the first quarter ended June 30, 2008. Net
Profit up by 23.9% to Rs. 1,512 crore (US$ 352 million)
2007
• January 10 - Reliance Communications adds a record 1.4 million
subscribers in December ‘06
• January 18 - Reliance Communication launches unique 'Simply
2030' plan on Reliance Hello
• January 25 - Reliance Communications promotes Roger Waters
Music Concert
• January 29 - RCOM shareholders approve tower business demerger
with a 99.99% overwhelming majority

24
• January 30 - Overwhelming response to Reliance World’s National
Digital Elocution Competition
• January 30 - Reliance joins Lenovo and Intel for 'Internet on the
Move'
• February 2 - Reliance Communications’ market capitalization tops
Rs 1 lakh crore ( 1 trillion rupees or 24.39 billion US dollars) on
Bombay Stock Exchange
• February 16 - Reliance Communications offers best value on
roaming
• February 26- Search Jobs & Classified Ads from Reliance Mobile
World - Reliance Communications ties up with Naukri.com
• March 6 - Reliance Communications ushers in ‘Virtual Global
Conference Network’
• March 7 - DHIRUBHAI AMBANI – THE MAN I KNEW By
KOKILABEN Book on Founder Chairman launched.
• March 8 - Reliance Communications launches ‘Roam Jamaica on
Reliance Mobile
• March 16 - Reliance Mobile launches ' Suno Zee’
• March 19 - Demerger of Passive Infrastructure division Reliance
Communications & Reliance Telecom approved by the Bombay
High Court
• March 21 - Reliance World Offers Program to Help Students
’Crack Admissions in Colleges Abroad’
• March 23 - Govt’s Rural Telephone Scheme(RDEL)through
Reliance Communications successfully closes by March 31,2007
• March 26 - Booking train ticket from Reliance Mobile Phones
becomes more easy now… with ITZ Cash Cards
• April 4 - Reliance Communications unleashes the power of mobile
advertising
• April 6 - Reliance Communications acquires 1.2 million
subscribers in March 2007.
• April 11 - Sunny Days And Nights For Reliance Mobile
Subscribers as Reliance Communications ties up with SUN TV to
offer video streaming of all SUN TV programs online 24x7

25
• April 11 - Reliance World launches summer e camp for school
kids
• April 30 - RCOM first listed Indian telecom company to reward
shareholders
• May 2 - A Classic Bonanza – Reliance Communications unveils
handsets @ Rs 777
• May 9 - RCOM bags West Bengal E-Governance Project
• May 10 - Reliance sets a new record, one million Classic handsets
sold in just one
• May 12 - Reliance Communications slashes rate to US and
Canada. It's now just Rs 1.99 per minute
• May 14 - Reliance Communications launches Classic Color
Bonanza - Color handsets @ Rs 1234
• May 17 - RCOM kick starts world's fastest and largest rural
infrastructure rollout on World Telecom Day.
• May 18 - Reliance Communications Launches Lifetime Validity
Recharge @ Just Rs.499.
• May 22 - RCOM slashes roaming rates by as much as 70 percent
• May 25 - Reliance Communications launches unlimited calling
• June 5 - RCOM hosts seminar on ‘Emerging Trends in Mobile
Applications Development’
• June 6 - Reliance Communications adds 1.4 million new mobile
subscribers in May2007
• June 6 - Reliance Classic' Makes Music - FM Radio Phones
Launched at just Rs.1888
• June 27 - Reliance World, BIMTECH & Philadelphia University
unveil Executive Program in Retail Management (EPRM)
• June 28 - Reliance Communications ties up with Cisco to launch
Business Internet Services for SMEs in Pune
• July 4 - Bengali movie ‘Anuranan’ on Reliance Mobile World
• July 7 - RCOM and QUALCOMM Collaborate on CDMA2000
Expansion

26
• July 12 - Reliance Communications awards Alcatel-Lucent a Next-
Gen network expansion contract

• July 12 - Reliance Communications awards Huawei all IP Next-

Gen network expansion contract
• July 19 - RCOM announces sale of equity stake in its Tower
Company-Reliance Telecom Infrastructure Limited
• July 19 - RCOM's AGM on Reliance Mobile World
• July 23 - Reliance Communications launches Passport Calling
Solutions
• July 25 - RCOM join hands with Yatra.com for air and hotel
bookings
• August 20 - RCOM offers 'Live Mandi Prices' on Reliance Mobile
World
• August 31 - Reliance Communications , the official global partner
for the first edition of ICC Twenty 20 World Cup Championship
2007 in South Africa unveils the coveted Trophy in Mumbai and
announces Dhoni - Dhanadan Pack
• September 9 - Reliance Communications launches Money Transfer
on Reliance Mobile Phones
• September 10 - RCOM launches BlackBerry 8830 World Edition
Smartphone'Bloomberg Professional' now on Reliance Mobile
• September 11 - Reliance Communications ties up with Sulekha.com
to offer local search on Reliance Mobile World
• September 18 - Strategic partnership with Vanco
• October 3 - Reliance Communications announces Classic
Celebrations- Classic Handset sales top 10 million- Color Handset
@ Rs.999
• October 20 - Reliance Communications to launch nationwide GSM
Services under existing Unified Access Service Licenses
• October 22 - Reliance Communications brings 'Durgotsav Live'
Videocast on mobile
• November 7 - Reliance Communications Launches 'Diwali
Dhamaka'
• November 15 - RCOM launches Rural Mobile Application Contest

27
 • November 16 - Fair & Lovely Scholarship on Reliance Mobile
World is winner at the MMA awards, USA
• November 27 - FLAG and GlassHouse ink landmark partnership
• December 11 - Reliance Communications adjudged World’s Top
CDMA Operator at the Global CDMA Industry Achievements
Awards Fete
• December 20 - Reliance Communications completes Yipes’
acquisition
• December 24 - RCOM announces special offers for Christmas and
New Year.
2006
• January 01 - Reliance Infocomm launches 'One Nation, One Tariff'
to enable Reliance IndiaMobile prepaid users to call anywhere in
India at Re one per minute.
• January 19 - Reliance Demerger adds record Rs.55, 000 Crore to
shareholder wealth
• January 23 - TIMES NOW launched on Reliance Mobile Phones,
making it the world’s first TV channel to be launched on a mobile
phone.
• March 06 - Reliance Communications Ventures Ltd. (RCVL),
India's leading integrated telecommunications company, a member
of the Reliance - Anil Dhirubhai Ambani group, lists on the
Bombay Stock Exchange and National Stock Exchange.March 21
• Reliance Infocomm introduces R World in Hindi to become the
world's first operator to offer mobile data services in more than
one language on the same handset. This will make it possible for
millions of Indians to access the popular R World with hundreds of
every-day-use applications in the national language.
• March 23 - Reliance-Anil Dhirubhai Ambani Group signs up Indian
cricket's whiz kid and heartthrob of millions Mahendra Singh
Dhoni as the brand ambassador for Reliance Communications
Ventures Ltd.
• March 29 - Reliance Infocomm becomes India’s first teleco m
operator to launch seamless inter-standard international roaming
service - 1World.1Number, with single number on international
CDMA and GSM networks.

28
 • April 27 - Reliance Communications launches India’s first Talking
Message Service (TMS) enabling its mobile users to send voice
messages to not only other mobiles but also fixed wireless phones
(FWP) and landlines.
• June 22 - Reliance Communications ties up with Disney to offer on
Reliance Mobile World India's first 3D animation on mobile.
• July 03 - Reliance Communications launches 'Hello Capital Plan'
to enable its subscribers in 19 state capitals to call each other at
the local call rate of 40 paise per minute.
• July 19 - Reliance Communications slashes ILD rates by up to 66%
• August 7 - T-Com signs contract with FLAG Telecom for Europe-
US bandwidth
• September 5 - Union Communications & IT Minister Thiru
Dayanidhi Maran inaugurates Reliance Communications’ FALCON
Cable System.
• November 17 - Reliance Communications launches Free Group
Term Life Cover for its CDMA subscribers
• December 28 - Reliance Communications’ FLAG Telecom
announces FLAG Next Gen to cover 60 countries
2005
• January 04 - Reliance introduces first e-recharge facility in CDMA
in India.
• January 24 - Reliance IndiaMobile announces mega rural plan to
cover 4 lakh villages and 65 crore Indians by December 2005.
• June 26 - Anil Ambani appointed Chairman of Reliance Infocomm
• July 30 - Air Deccan and Reliance WebWorld join hands to offer
air ticket booking facility at Reliance WebWorld
• August 11 - XLRI's Post-Graduate Certificate programme in
Logistics Supply Chain Management (PGCLSCM) launched on
Reliance WebWorld's virtual classroom platform. first of its kind
e-learning programme in India.
• August 18 - Reliance Infocomm rolls out international roaming
facility across several countries to become the first Indian CDMA
operator to offer its customers such a service.
• September 06 - Reliance Infocomm tied-up with the Bombay Stock
Exchange to make available live stock quotes on its mobile phones.

29
 • September 15 - Reliance Communications, UK launched Reliance
IndiaCall service in England and Wales enabling callers to make
high-quality calls to India from any landline or mobile phone at
economical rates.
• September 21 - Apollo Hospital and Reliance Infocomm join hands
to provide top class healthcare service to millions of Indians in
over a hundred Indian cities.
• October 13 - Reliance WebWorld wins Frost & Sullivan Market
Leadership Award for Video Conferencing services.
• November 12 - Reliance Infocomm hosts the 4th global CDMA
Operators Summit.
• November 22 - Reliance Infocomm joins hands with Indian
Airlines to offer India's first mobile booking of domestic airline
ticket.
• November 30 - Reliance Infocomm introduces MOREbile,
redefines customer rewarding with 33 % more talk time on prepaid
recharges of Rs 315 denomination and above and much more.
• December 12 - Reliance Infocomm and China Telecom sign
agreement for telecom services to provide direct
telecommunication service, including a global hubbing service, to
subscribers in the two countries.
2004
• January 12 - International wholesale telecommunications service
provider, FLAG Telecom amalgamates with Reliance Gateway, a
wholly owned subsidiary of Reliance Infocomm
• February 9 - Launches RIM Prepaid with attractive offer - For Rs
3500 get a Motorola C131 mobile phone and Rs 3240 worth of re-
charge vouchers instantly and stay connected for 1 year
• February 17 - Reliance subsidiary Flag Telecom announces
FALCON Project - a major new Middle East Loop Terabits
Submarine Cable System with links to Egypt and Hong Kong via
India
• March 22 - Reliance Infocomm launches multi-player gaming on
RIM handsets - a first in India
• April 05 - Reliance IndiaMobile introduces International Roaming
facility to 172 countries, 300 networks

30
 • April 23 - Reliance Infocomm introduces first ever auction facility
on Mobile phones through R World.
• May 27 - Reliance Infocomm receives the Most Promising Service
Provider of the Year 2003 (Asia Pacific) award at the Asia Pacific
Technology Awards instituted by Frost & Sullivan.
• June 8 - Reliance Infocomm introduces World Card - a Prepaid
International calling card for affordable and convenient ISD calls
from India.
• July 29 - Announces India's First MPLS Global VPN Solution in
partnership with MCI
• August 5 - Launches the first regional Customer Contact Centre in
Chennai
• September 6 - Mukesh D. Ambani, Chairman, Reliance Infocomm,
receives Voice & Data 'Telecom Man of the Year' award
• September 9 - Introduces Railway Ticket booking from R World
data applications suite of Reliance IndiaMobile
• October 12 - Mukesh Ambani voted the world’s most infuential
telecom person by UK-based publication Total Telecom.
• October 19 - Reliance Infocomm bags the CDMA Development
Group's 3G CDMA Industry Achievement Award for International
Leadership.
2003
• January 15 - Introduces Dhirubhai Ambani Pioneer Offer for
Reliance IndiaMobile service
• February 14 - Launches Reliance WebWorld in top 16 cities
• March 31 -Launches International Long Distance Services
• April 3 - Commissions all backbone rings
• April 25 - Introduces colour handsets
• May 1 - Launches Reliance IndiaMobile Service commercially in
top 92 cities with one million customers.
• June 10 - Launches India's first wireless Point of Sale (POS)
• July 1 - Introduces 'Monsoon Hungama' Offer: Instant multimedia
mobile phone and connection for just Rs 501.

31
 • Sets world record - acquires one million customers in 10 days
• July 3 - Launches R Connect Internet connection cable
• Aug 26 - Introduces Reliance IndiaPhone Fixed Wireless Phone
and Terminal
• September 20 - 'Navratri' a data service in R-World posts a world
record of 10 million downloads on the first day of the launch.
• September 30 - R World clocks a phenomenal 1 billion hits in 1
month
• October 6 - Launches integrated broadband centre at Reliance
WebWorld, Bangalore
• October 24 - Deploys pilot of Home Netway in Mumbai
• October 30 - Reliance becomes India's largest mobile service
provider within 7 months of commercial launch
• November 3 - Customer base touches 5 million
• November 12 - Migrates to Unified License Regime
• November 16 - Launches National Roaming
• November 21 - Launches International SMS to 159 countries
launched
• December 19 - Adds 4500th Contact Centre Executive
• Contact Centre becomes the largest such facility deployed by any
single Indian Service Provider
2002
• January 15 - First Base Transceiver Station (BTS) made 'Ready for Electronics'
• February 25 -Obtains International Long Distance License from Govt. of India
• December 22 - Commissions 1st Optic Fibre Backbone ring
• December 24 - Establishes 1st Point of Interconnect (POI) in New Delhi
• December 27 - Hon'ble Prime Minister of India, Atal Behari Vajpayee e-
inaugurates Reliance Infocomm
• Hon'ble Union Minister for Parliamentary Affairs, Information Technology and
Communications, Pramod Mahajan, inaugurates NNOC

32
 • 2001 -May 1- First Media Convergence Node made 'Ready for Electronics' at
Jaipur
• 2000 -May 10 Optic fibre laying process commences in Gujarat, Andhra Pradesh
& Maharashtra
• 1999- The Dream, 1999
• 'Make a phone call cheaper than a postcard and you will usher in a revolutionary
transformation in the lives of millions of Indians' - Dhirubhai Ambani
• The Reality, November 15 - Reliance Infocomm begins Project Planning
Achievements/ recognition:
• First to launch BlackBerry 8830 World Edition Smartphone in India
• Reliance Communications' Flag Telecom Awards U.S. Dollar 1.5 Billion (Rs
6000 Crore) Turnkey Contract To Construct Flag Next Generation Network
Submarine Cable
• Reliance BIG TV expands channel bouquet with 10 new channels
• Reliance Communications clocks 11.3 million new subscribers in January -
March
• Reliance Communications adds a record 3.3 million wireless customers in
February 2009
• Reliance Communication launches 'Netconnect Broadband Plus' - India's fastest
wireless Internet service
• Reliance Communications adds a record 5 Million New Subscribers in January
2009
• Reliance Mobile enhances value proposition for its GSM customers with Lifetime
offer
• Reliance Mobile launches GSM Services in Delhi
• RCOM launches Unique Customer Experience Programme
• RCOM first listed Indian telecom company to reward shareholders
• Reliance Infocomm becomes India’s first telecom operator to launch seamless
inter-standard international roaming service - 1World.1Number, with single
number on international CDMA and GSM networks.
• Reliance Infocomm introduces first ever auction facility on Mobile phones
through R World.

33
 • Reliance Infocomm bags the CDMA Development Group's 3G CDMA Industry
Achievement Award for International Leadership.
• Introduces Railway Ticket booking from R World data applications suite of
Reliance IndiaMobile
• Reliance Infocomm receives the Most Promising Service Provider of the Year
2003 (Asia Pacific) award at the Asia Pacific Technology Awards instituted by
Frost & Sullivan.
• Reliance Infocomm introduces World Card - a Prepaid International calling card
for affordable and convenient ISD calls from India.
• Announces India's First MPLS Global VPN Solution in partnership with MCI
• Launches India's first wireless Point of Sale (POS)

Competitors

Sales Current Change P/E Market 52-Week

Company
(Rs.Million) Price (%) Ratio Cap.(Rs.Million) High/Low
Bharti Airtel 340142.90 315.75 -1.28 13.38 1214420.02 495/230

Reliance Comm. 150866.60 176.60 -2.54 8.82 374001.67 359/131

Idea Cellular 98570.80 57.15 -1.80 15.41 180425.54 92/41

Tata
37494.30 342.00 0.48 22.70 96999.75 651/336
Communications

Tata Teleservice 19416.80 26.60 -0.37 0.00 50655.16 42/19

MTNL 44559.99 74.15 -0.67 0.00 47029.50 124/59

Spice Comm 15804.77 62.40 -0.79 0.00 43396.28 95/26

GTL 2462.84 37.85 1.75 0.00 35388.31 50/28

34
Infrastructure

Tulip Telecom 16082.83 942.00 0.33 9.67 27228.10 1250/258

HFCL Infotel 2235.71 6.07 -0.16 0.00 3722.54 15/5

IOL Netcom 371.26 27.30 -1.44 0.00 758.02 58/23

Southern Online
394.78 22.65 4.86 47.49 706.62 27/7
Bio.

Dhanus
1951.72 31.40 -1.41 7.74 571.47 46/12
Technology

HathwayBhawani
123.84 13.59 3.35 44.20 105.20 19/5
Cable

Esskay Telecom 149.64 3.27 0.00 0.00 65.40 3/3

Integ. Digital Info 19.50 3.35 2.45 0.00 48.98 5/2

Munoth Comm 0.06 4.00 -1.23 0.00 38.60 8/3

Vital
0.32 0.82 1.23 0.00 30.76 2/1
Communication

35
RESEARCH

METHOLOGY

RESEARCH METHODOLOGY

36
 R es earch methodology forms an importan t part of any res earch

p r o ject. It is a w ay to s ys tematica lly s olve the res earch problem. Tw o

co n s iderations for res earch methodology under res earch report are

( 1 ) R ES EA R C H D ES IG N .

( 2 ) S EC O ND A R Y DA TA .

Research Design
The function of res earch des ign is to provide the collection o f

r elev ant evidence w ith min ima l expenditure of efforts , time & money .

Th e r es earch des ign us ed here is exploratory in nature, very flexible &

ju d g menta l in order to s tud y the products and s ervices provided by th e

R ELI A N C E MO N EY .

SECONDARY DATA:- It w as collected through the Internet,

M ag azines , N ews papers and C orporate P rofile.

Data Collection Tools:

Th e main methodology us ed w as “ D es cr iptive D es ign ”, w ith its main

to o ls being the

• D is cus s ion G uidelines

• Q ues tionnaire

• P ers onal interview s

• Sample Size:

37
 I t co u ld be very difficult and time cons uming to collect data from whole

p o p u lation, s o accordingly the s ample s ize of 150 has been taken

th r o u g h careful des ign and analys is , for this s tudy purpos e.

I h av e us ed tw o types of res earch methodology for the s urvey, viz.,

L it era tu re S earch

Liter a ture S earch involves various printed materia ls and w ebs ite. In th e

liter a ture s earch I tried to f ind out what R eliance telecom is offering to

its p o tential cus tomers .

I n th e live ques tionnaire s urvey I had met w ith w alk-in cus tomers ,

R etail ers , general public, profess ionals and s tudents .

Th e p urpos e for the ques tionnaire survey is to as s ess the cus tomer

ex p ectat ions from R eliance teleco m vis -à-vis marketing s trateg y

imp lem ented.

Th e q u es tionnaire s urvey helps in unders tanding the live cus tomers as

w e g en erally find that thes e s urvey are very nearly fill the purpos e o f

th e p r o ject.

Th e d ata collected here is of primary in nature. The various res pons es ,

w h ich were collected by vis iting R eliance WebWord offices & o n

v ar io u s retail outlets of R eliance telecom at different regions o f

A llah abad are accumulat ed. The res earcher hims elf filled the form after

as k in g the ques tions from the ques tionnaire in either s tructured o r

u n s tr u ctured w ay w ithout indulging in to telling the res pondents that h e

is f r o m R eliance s o that the res pons es s hould be free from bias es .

38
I h av e vis ited to 45 retail outlets and 2 w eb world offices w here th e

cu s to mers w alk-in and interview ed 1500 res pondents . Thes e

r es p o ndents are bas ically very much aw are about the s ervices bein g

o f f er ed by the R elianc e telecom and mos tly are aw are about th e

P R EP A ID s ervices .

I h av e interview ed 550 res pondents on the s ame ques tionnaire from

v ar io u s s treet of the s ociety thos e who normally having mobile s ets o r

ar e w illing to buy one belonging to the low er income group, lik e

s tu d en ts , s mall bus ines s men, milkman, , s mall traders , Teas hop ow ners ,

M es o n s , hous ew ives , landline ow ners etc.

O n th e very bas is of the interview ing res pondents at various points o f

p u r ch as es and localiti es of A llahabad bas ed on the ques tionnaire data

ar e co llected and analys is is done.

I h av e divided the data according to the ques tions in three categories :-

• Walk- in res pondents of R eliance w eb w orld offices

• Walk- ins res pondents in R eliance R etail Outlets

• C ommon M arketers

I h av e calculat ed in the form of %age of res pons es received from each

r es p o ndents and accordingly bar chart is made for the eas y

clas s if icat ions and findings to come to certain conclus ions .

PREPAID MARKET SEGMENTS

39
M o s t prepaid us ers are cos t cons cious .

• F lexibili ty S eekers

• Lo w B udget us ers

• C r edit C hallenged Us ers

• Temporary U s ers

F acto r s that attrac t thes e s egments

• Th e eas e of entry

• Th e recharge voucher flexibil ity

Prepaid- gives control and convenience

40
P ay th e money upfront thro ugh recharge vouchers and get certain fixed

talk time and data us age for a given period. A s w e us e, charges g et

d ed u cted –online, real time.

S elf s ervice to ens ure that all cus tomers needs are jus t a few button s

aw ay .

PREPAID OPERATION ORGANISATION

P r ep aid s ales and dis tribution

I N O p erations and M aintenance

P r ep aid R evenue Operations

P r ep aid C ontact C entral D es k

SUPPORT GROUP

41
P r o d u ct M anagement

C en tr al Logis tics

C o mmerci al

P r o cu r ement

IN OPERATIONS & MAINTENNACE

42
T E C HN IC A L SU PPOR T FR OM T HR E E GR OU PS

-EWC (Engineering and P lanning)

-N NO C (24 X 7 M onitoring and M aintenance)

-ITC (A ll U pgrades and N ew D evelopments )

PREPAID REVENUE OPERATIONS

43
C o n s is ts of three groups

- R ech arge card operations : recharge cards production and supply chain

man ag emen t

-IN tariff operation: all tariff plan configurations , tariff table

main ten ance and tes ting

- R es o lution des k: clos ing various trouble tickets related to call charges ,

r ech ar ge credits and prepaid account problems .

PREPAID CONTACT CENTER

44
- 24 X 7 contact center s upport for prepaid

- Will handle all calls s pecific to prepaid (billing, data,

n etw o r k and hands et)

- M ultilingua l

- Local s upport through FS D

MARKETING MIX

45
Th e idea of marketing mix w as firs t conceived by Prof. N eil H . B ordo n

o f H arvard B us ines s S chool, according to him “the marketing mix refer s

to th e apportionmen t of efforts , the combination, the des igning and th e

in teg r at ion of the elements of the marketing into a program or mix

w h ich on the bas is of an apprais al of the marketing force w ill bes t

ach ieve the objectives of an enterpris e at a given time.”

Th e marketing mix is a very important concept in pres ent marketin g

en v ir o nment.

M cC arthy has popularized a four-factor clas s ification of thes e too ls

called

FOU R Ps :

Pr o d u ct, place, pr ice and pr om otion.

T h ere are variou s typ es of tools w ith in th es e fou r Ps .

46
Pro d u ct : V ariety, Quality, D es ign, F eatures , B rand name, P ackaging ,

S izes , S ervices , Warranties , R eturns .

Price: Lis t price, D is counts , A llow ances , P ayments , and C redit Terms

Pla ce: C hannel, C overage, As s ortments , Location, Inventory, Trans por t

Pro m otion : S ales P romotion, Advertis ing, S ales Force, P ublic R elation ,

D ir ect

MARKETING MIX STRATEGY

47
 Promotion Mix Offer Mix

Advertising
Sales Promotion
Product Sales Force Target
Company Services Public Relation Distribution Customer
Prices Direct Marketing Channel

R eliance has planned in marketing mix in s uch a w ay that P roduct,

p lace, price and promotion compli ments each other. The product is

48
tar g eted to the middle and low er income group segment, the price is

k ep t to s uit to the pockets of low er income group of the middle clas s

s eg ment, w hile the s ales promotion s chemes are launched to induce firs t

tr ial. The main thrus t area is that it should be available at the maximum

r etail outlets .

R I M brand has been s trategically launched all over country and has

b een accepted by its target cus tomers very succes s fully.

49
 THE BUYING DECISION PROCESS

We h ave to go beyond the various influences on buyers and develop an

u n d er s tanding of how cus tomers actual ly make their buying decis ions so

w e mus t identify w ho makes the buying decis ions , the type of buyin g

d ecis ions and the s teps in buying decis ion.

F o r many a product it is very eas y to identify the buyer but in cas e o f

mo b ile phone s et and the kind of s ervices required from various GS M

an d WILL s ervices availab le there involved a decis ion making un it

co n s is ting of more than one pers on.

We can find five roles people might play in a buying decis ion:

I n itiator : a pers on w ho firs t s ugges ts the idea of buying the particular

p r o d u ct or s ervices .

I n f lu encer: a pers on w hos e views or advice carries s ome weight in

making the final decis ion.

D ecid er: pers on w ho decides on any components of a buying decis ion ,

w hether to buy, how to buy, w here to buy, what to buy.

B u y er : the pers on w ho makes the actual purchas e.

U s er : pers on w ho cons umes or us es the product or s ervices .

50
R eliance Infocomm needs to identify thes e roles becaus e they hav e

imp lic ations for des igning the product, determining the mes s age, an d

allo ca ting the promotional budget. K now ing the main participant an d

th eir r oles helps R eliance fine tune its marketing program.

Types of Buying Behavior

C o n s u mer decis ion making varies w ith the type of buying decis ion .

C o mp lex and expens ive purchas es are likely to involve more buyer

d elib era tions and more participants .

Th er e are mainly four type of buying behavior viz.

51
1-Complex Buying Behavior:

Wh en the cons umer is highly involved in a purchas e decis ion and is

s ig n if icant ly aw are about the differences among the brands . This typ e

o f b ehavior is mos tly s een w hen the product is expens ive and bough t

in f r eq uently, ris ky and hig hly s elf-expres s ive. B uyer learns about th e

p r o d u ct and then thoughtful purchas e is made.

Th e marketer has to develop the s trategies that as s is t the buyer in

lear n ing about the attributes about the product clas s and their relativ e

imp o r tanc e.

2-Dissonance Reducing Buying Behaviors:

I n th is cas e the buyer is highly involved and s ees little differences

amo n g the brand available, buyer w ill shop around to learn what is

av ailab le but purchas e is quick becaus e brand difference is no t

p r o n o unced. H ere the marketing communica tion s hould aim to supply

b elief s and evaluat ions that help the cons umer feel good about his o r

h er b r and choice.

52
3- Habitual Buying Behavior:

M an y products are bought becaus e of low cons umer involvemen t an d

th e abs ence of s ignificant brand differences , i.e., the brand is bough t

b ecau s e of habit not becaus e of brand loyalty, and such are inexpens iv e

p r o d u cts and frequently purchas ed products . The cons umer behavior in

s u ch cas es does not pas s th rough the normal beliefs /at titude /convi ctio n

s eq u ence. The cons umer buys the product becaus e they are familiar w ith

th e b rand and not becaus e they form s trong attitud e tow ards th e

p r o d u ct. In s uch cas e the marketer s hould us e the s ales promotion as an

in cen tiv e to product trial and the repeat advertis emen ts in televis io n

an d p r int media.

53
4-Variety Seeking Buying Behavior:

S o me buying s ituations are character ized by low cons umer involvemen t

b u t s ignificant brand differences . H ere cons umers are often obs erved to

d o lo t of brand s w itching w hich occurs for the s ake of variety rather

th an dis s atis faction. In this cas e the marketing s trategy for the mark et

lead er and the challenger w ill be different. The market leader w ill tr y

f o r th e habitual buying by frequent reminder of the advertis emen ts an d

th e challenger w ill offer v arious s chemes and encourage trying s ome

th in g new .

54
Stages in Buying Decision

C o ns u mer pas s th rou gh five stages in b u yin g a p rod u ct:

• P roblem recognition

• Information search

• Evaluat ion of alterna tives

• P urchas e decis ion

• P os t purchas e decis ion

Need Information Evaluation of Purchase Post Purch-

Recognition Search Alternatives Decision ase Decision

55
 Five- Stage Model of the Buying Process

Need recognition:

Th e b uying proces s s tarts w hen the buyer recognizes a problem or need .

Th e n eed can be triggered by the external and internal s timuli. Th e

mar k eter needs to identify the circums tances that trigger a particular

n eed . B y gathering informat ion from the no. of cus tomer the marketer

can id entify the mos t frequent s timuli that s park an interes t in a produ ct

categ ory and formulate s trategies that trigger the interes t.

Information Search:

A n ar ous ed cus tomer w ill be inclined to s earch for more informatio n

f r o m various s ources ,viz., pers onal sources , commercial s ources ,

p u b lic s ources , experiment al s ources .

Th e r elativ e amount and influence of thes e information s ources varies

w ith the product category and w ith the buyer character is tics . Throug h

g ath er ing information the cus tomer learns about competing brands an d

th eir f eatures . The marketer s hould identify and evaluat e the importance

o f each s ource.

56
Evaluation of Alternatives:

Th er e is no s imple and s ingle evaluation process that is us ed by all

co n s u mers and or even by one cons umer in all buying s ituation s .

P r o d u ct judgment is largely on cons cious and rational bas is . C ons umer

s ees each product as bundle of attributes w ith varying capabilit ies o f

d eliv ering the s ought benefits and s atis fying this need. The marketer

can s egment the market according to the attribut es that are relevant

to d if ferent cons umers .

Th e cons umer is likely to develop a set of brand beliefs about w her e

each brand s tands on each attribute. The brand beliefs make up th e

b r an d image. The marketer could redes ign the product, alter belief s

ab o u t the brand, alter beliefs about the competi tor brand, call attentio n

to n eg lected attribut es or shift the buyer’s ideals .

57
Purchase Decision:

I n th e evaluation s tage the cons umer forms preferences among th e

b r an d s in the choice s et. The cons umer may als o form the purchas e

in ten tion to buy the mos t pr eferred brand.

A co n s umer decis ion to modify, pos tpones or avoid a purchas e decis io n

h eav ily influenced by perceived ris k. A cons umer w ho decides to

ex ecu te a purchas e.

in ten tion w ill be making up to five sub decis ions viz.B rand decis ion ,

V en d o r decis ion, Q uantity decis ion, Timing decis ion, payment metho d

d ecis ion.

58
Post Purchase Decision :

Wh at defines that the buyer is s atis fied or not! The buyer s atis faction is

a f u n ction of the clos enes s betw een the buyer’s product expectation s

an d the product’s perceived performances . If the product performances

f alls s hort of the cus tomer expectat ions the cus tomer is dis appointed , if

it meets the expecta tions the cus tomer is s atis fied, if it exceeds th e

p er f o r mances the cus tomer is delighted. Thes e feelings decides w hether

th e cu s tomer w ill buy the product again or not and talk favorably or no t

to o th ers .

Identifying the Market Segment:

Wh en ever the market for a product or s ervice cons is ts of tw o or mor e

b u y er s the M arket is capable of being s egmented i.e. divided into

mean ingful buyer groups . The purpos e is to determine differences

amo n g buyers , which may be cons equential in choos ing aw ay them o r

mar k eting to them. The cus tomers are too numerous , varied, an d

d is p er s ed in their buying behavior and requirements . The compan y

in s tead of competit ive everyw here, often agains t superior odds , need s

to id entify the mos t attractiv e market s egments that it can s erv e

ef f ective ly.

Th e market cons is ts of buyers and buyers differ in one or mor e

r es p ects .

59
Major segmentation variables for mobile market

Geographic

• R egion

• S tate S ize

• C ity S ize

• D ens ity

• C limate

Demographic

• A ge

• S ex

• F amily S ize

• Income

• F amily Life C ycle

• O ccupation

• Education

Psychographic

• S ocial C las s

• Lifes tyle

60
 Behavioral

• O ccas ions

• B enefits

• Us er S tatus

• Us age R ates

• Loyalty S tatus

• R eadines s S tage

• A ttitude tow ards product

Selecting the Market Segments

Af ter evaluating different market s egments the company hopes to fin d

o n e or more market s eg ments worth entering. The company mus t

d ecide w hich and how many s egments to s erve. There are five pattern s

o f s electing the target market.

• S ingle S egment S election

• S elective Special izat ion

• P roduct S pecializ ation

• M arket S peciali zation

• F ull M arket C overage

Determinants of Customer Added Value

Af ter analyzing the market s egments and the company s trategies fo r

s electing the market s egment w e need to analyze the values of ITC

61
b r an d John Player s that play an effective role on how the cus tomer

p er ceives the brand.

PRODUCT
VALUE

SERVICE TOTAL
VALUE CUSTOMER
VALUE

PERSONAL
VALUE
TOTAL
DELIVERED
VALUE

MONETARY
VALUE

TIME COST TOTAL

CUSTOMER
PRICE

ENERGY COST

PSYCHIC COST

62
IMPLEMENTATION OF MARKETING STRATEGY

Reliance Prepaid Branding

B r an d to be called R IM P rep aid

R atio n al e: a short trendier name

I mag er y: young, trendy and ins pirationa l, but w ould reflect th e

co n f id ence to emotional ly connect w ith the cons umer.

R I M Prep aid B rand Pos ition in g

• B rand is pos itioned on the C onfidence platform.

• A ppeals to all cons umers s egments

• U nique in the category

• R IM prepaid to ow n this - both at a R ational and Emotional level.

• C onfidence is a relevant category proposition

The brand proposition

M u ch like my confidence in my ow n capabilit ies , I have confidence only

in R IM P repaid to offer me the bes t value and to deliver w hat it

p r o mis es . This propos ition is supported by product offerings

H an d s ets , B es t call rates , M aximum card validi ty

63
 RIM Prepaid Launch Plan

1. Retail Visibility

S hop S ignage’s

D is tinctive looks ,

6-L square feet s ignage is provided to retailers

D is play C ontes ts are run among retailers

2. Mass Media

TV

P res s

O utdoor

R adio FM

C inema

3. Below –the – line activities

R oad show s , kios ks , joint promotion

D is tributor launch events

4. Co-branded campaign with Motorola

P os ters

B untings

F lex w all hangers

64
 Role of various communication media

T V – P rimarily brand building, plus a bit of value propos ition

Pres s – P rimarily value propos ition

R a d io - V alue P ropos ition

Ou t d o ors – B rand B uilding and V alue P ropos ition

C o lla t eral – B rand B uilding P os ters , B untings , D anglers , B ackin g

S h eet, S helf S trips , Leafle t D is pers ers , Sun B oards , C ut outs

C o lla t erals – V alue P ropos ition B rochures , P os ters , B untings , Ten t

C ar d s

S ig n a g e – B rand S alience

65
ADVANTAGES OF PREPAID

W I N –WI N FOR C US T OME R S

• LO W MO N TH LY SP EN D

• N O D EP O S ITS

• C O N TR O L ON C O S TS

• F LEX IB ILITY

W I N – WI N FOR OPE R A T OR S

• LO WER S ER V IC E C OS T P ER SU B S C R IB ER – N O CO S T O F

B ILLIN G & CO LLEC TIO N

• C A SH U P -F RO N T - N O BA D D EB TS

• S A TIS F IED CU S TO M ER S

W IN – W IN F O R C HA N N E L PA R TN E R S

• C O N TINU O US R EV EN U E G EN ER A TO R

• LO W IN V ES TM N ET IN SP A C E / LOG IS TIC S

• LO W S ELLIN G EFF O R T – A M AR K ET PU LL P RO D U C T

• S ELLIN G EF FO R T O N LY F OR A CQ U IS ITION –R EC H A RG E

C A R DS S A LES A B Y PR O DU C T

66
THE RESEARCH PROCESS:-

Conceptualization

Identification of the problem

Extensive Literary Search

Working Hypothesis

Research Design

Sample Design

Data Collection

Analysis of the Data

Findings & Conclusions

67
 Documentation

DATA

PREPARATION

68
 INTERPRETATION OF DATA ON THE BASIS OF
THE QUESSIONAIRE AND LOCATIONS

Question no. –1- ARE YOU A CELL PHONE USER?

Location Yes No
Web world offices 90% 10%
Retailers 69% 31%
Common Marketers 46% 54%

(nearest %age)

90
80
70
60 web world
50
Retailers
40
30 common
20 Marketers
10
0
YES NO

69
Question –2-WHICH SERVICE PROVIDER DO YOU USE?

Location Reliance Hutch BSNL

Web world offices 33% 46% 31%
Retailers 16% 40% 44%
Common Marketers 20% 55% 25%

(Nearest %age)

60

50

40 Web world

30 Retailers

20 Common
Marketers
10

0
Reliance Hutch BSNL

70
 UESTION NO-3-ARE YOU
SATISFIED WITH THE EXISTING SERVICE PROVIDERS?

Location Excellent Very good Good Satisfactory Unsatisfactory

Webworld 0% 10% 33% 30% 27%
Retailers 0% 10% 15% 20% 55%
Common 0% 5% 45% 25% 25%
Marketers
(Nearest %age)

60

50
webword
40

30 retailers

20 common
marketers
10

0
Unsatisfied Good Excellent

71
Question no.-4- DO YOU WANT TO CHANGE FROM EXISTING SERVICE
PROVIDER?

Location Yes No Can not say

Web world offices 10% 85% 5%
Retailers 60% 30% 10%
Common Marketers 25% 30% 45%
(Nearest %age)

90
80
70
60 webworld
50
40 retailers
30
20 common
10 marketer
0
Yes No Can not
say

Question no.-5- ARE YOU USING PRE-PAID OR POST-POST?

72
 Location Postpaid Prepaid
Web world offices 85% 15%
Retailers 40% 60%
Common Marketers 40% 60%
(Nearest %age)

90
80
70
60
50 webworld
40 retailers
30 common mrketers
20
10
0
postpaid prepaid

Question no.-6- ARE YOU INTERESTED IN OPTING FOR PREPAID?

73
 Location Yes No Yet to decide
Web world offices 60% 30% 10%
Retailers 70% 20% 10%
Common Marketers 40% 30% 30%
(Nearest %age)

70
60
50
webworld
40
30 retailers
20
common
10 marketer
0
Yes No Yet to
decide

74
 Question no.- 7-ARE YOU INTERESTED IN OPTING FOR RELIANCE
PREPAID?

Location Yes WANT MORE INFOTMATION

Web world offices 80% 20%
Retailers 90% 10%
Common Marketers 50% 50%
(Nearest %age)

90
80
70
60
50 webworld
40 retailers
30
common marketer
20
10
0
Yes

75
 Question no.-8- WHY DO YOU WANT TO OPT FOR THE PREPAID?

Location Easy Affordability Ease of entry

availability
Web world offices 50% 30% 20%
Retailers 90% 10% 0%
Common Marketers 60% 30% 10%
(Nearest %age)

90
80
70
60
50 webworld
40
retailers
30
common marketer
20
10
0
easy ease of
avaialabilty entry

76
Question no.-9-WHAT ARE YOUR CALL CHARGES PREFERENCES?
Reliance: Rs.1.00 per min
Hutch: Rs.2.49 per min.
BSNL: Rs.2.40 per min.

ALL RESPONDENTS HAVE SAID TO PREFER RELIANCE CALL

CHARGES.

100
90
80
70 webworld
60
50 retailers
40
30 common
20 marketers
10
0
Reliance Hutch BSNL

77
 Question no.10-DO YOU PREFER THE R-WORLD SERVICES OFFERED BY
RELIANCE?

Location Excellent Important Not required

Web world offices 60% 20% 20%
Retailers 50% 25% 25%
Common Marketers 40% 30% 30%
(Nearest %age)

60

50

40
webworld
30
retailers
20 common marketer

10

0
Excelelnt Important Not Required

78
 Question no.11-WHAT YOUR EXPECTATIONS FROM THE RELIANCE
PREPAID SERVICES?

Location Low Tariff Affordability Roaming Handset

Webworld 80% 10% 5% 5%
Retailers 85% 15% 0% 0%
Common 60% 20% 10% 10%
Marketers
(Nearest %age)

90
80
70
60
50 webworld
40 retailers
30 common marketer
20
10
0
Low Tariff Affordability Roaming Handset

Our new marketing focus, made explicit in this plan, renews our vision and strategic
focus on adding value to our target market segments, the small business and high-end
home office users, in our local market.

American Technology will change its focus to differentiate itself from box pushers and
improve the business by filling the real need of small business and high-end home office
for reliable information technology including hardware, software, and all related services.

79
Our marketing challenge is to position our product and service offerings as the high-
quality, high value-add alternative to box pushing in a vacuum.

Product 1997

GEN $1,372,500

Systems $3,293,500

Service $380,000

Software $799,250

Training $113,000

Totals $5,958,250

80
1.1 Vision

AMT is built on the assumption that the management of information technology for
business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in
that it is not inherently a do-it-yourself prospect. Smart business people who aren't
computer hobbyists need to find quality venof reliable hardware, software, service, and
support. They need to use these quality vendors as they use their other professional
service suppliers, as trusted allies.

AMT is such a vendor. It serves its clients as a trusted ally, providing them with the
loyalty of a business partner and the economics of an outside vendor. We make sure that
our clients have what they need to run their businesses as well as possible, with
maximum efficiency and reliability. Many of our information applications are mission
critical, so we give our clients the assurance that we will be there when they need us.

1.2 Objectives

1. Increase sales by 20%

81
2. Increase gross margin to more than 25%.

3. Increase our non hardware sales to 65% of the total.

2.0 Target Markets

AMT focuses on small business in the local market, with special focus on the high-end
home office and the 520unit small business office.

Market 1997 1998 1999 2000 2001 Total

Home $25,000,000 $27,500,000 $30,250,000 $33,275,000 $36,602,500 $152,627,500

Office

Small $50,000,000 $52,500,000 $55,125,000 $57,881,250 $60,775,313 $276,281,563

Business

Totals $75,000,000 $80,000,000 $85,375,000 $91,156,250 $97,377,813 $428,909,063

2.1 Market Definition and Segmentation

We have broken our markets into groups according to standard classifications used by
market research companies: home offices and small business.

Exact definitions of these market segments is not necessary for our marketing planning
purposes here; general definitions will suffice. We know our home office customers tend
to be heavy users, wanting high-end systems, people who like computing and computers.
The low-end home office people buy elsewhere. We also know that our small business
customers tend to be much less proficient on computers, much more likely to need and
want handholding, and much more likely to pay for it.

82
2.2 Target Market Segment Strategy

We cannot survive just waiting for the customer to come to us. Instead, we must get
better at focusing on the specific market segments whose needs match our offerings.
Focus on targeted segments is the key to our future.

Therefore, we need to focus our marketing message and our product offerings. We need
to develop our message, communicate it, and make good on it.

2.3 Target Market: Home Office

The home offices in Tin town are an important, growing market segment. Nationally,
there are approximately 30 million home offices, and the number is growing at 10% per
year. Our estimate in this plan for the home offices in our market service area is based on
an analysis published four months ago in the local newspaper.

Home offices include several types. For our plan, the most important are the home offices
that serve as the only offices of professional firms. These are likely to be professional
services such as graphic artists, writers, and consultants, also some accountants and the
occasional lawyer, doctor, or dentist. There are also individuals who maintain home
offices for part-time use, including "moonlighters" and hobbyists. This segment is not

83
who AMT wishes to sell to; our marketing focus consists of professionals and
entrepreneurs who maintain a full-time office. In this plan, we will refer to customers in
the home office segment as HOs.

2.3.1 Needs and Requirements

Our target HOs are on average as dependent on reliable information technology as any
other businesses. They care more about reliable service and confidence than about the
rock-bottom lowest price. They don't want to rely solely on their own expertise, so they
choose instead to deal with us with our promise of service and support when needed.

Our standard HOs will be one system installations, no networks, much more powerful
systems than the average small business. Fax modems, voicemail, and good printers are
likely. They tend to be interested in desktop publishing, accounting, Internet, and
administration software as well as their job specific software needs.

It's important that we realize we won't be selling to the price oriented HO buyers. We'll
be able to offer an attractive proposition to the service oriented and security oriented
buyers only.

2.3.2 Distribution Channels

Unfortunately our HO target buyers may not expect to buy with us. Many of them turn
immediately to the superstores (office equipment, office supplies, and electronics) and
mail order to look for the best price, without realizing that there is an option that provides
greater value for dollars.

2.3.3 Competitive Forces

Our focus group sessions indicated that our target HOs consider price but they would buy
on quality service if the offering were positioned correctly. Price is the message they're
exposed to again and again; they have been trained to shop on price. We have very good
indications that may would much rather pay 1020% more for a relationship with a long-

84
term vendor providing backup and quality service and support; they end up in the box
pusher channels because they aren't aware of the alternatives.

Availability is also very important. The HO buyers tend to want immediate solutions to
problems. Consequently, they can be subjected to high-pressure, under-trained
salespeople who may not be able to factor in all of a customer's needs.

2.3.4 Communications

One of the best places to reach the target HO is the local newspaper. Unfortunately, that
medium is saturated with pure price only messages, and we'll have to make sure that our
message is accurately stated.

Radio is potentially a good opportunity. Our HO target buyers listen to local news, talk
shows, and sports. Sponsoring a technology discussion/callin talk show is a possibility.

Seminars are a tough sell. The target HO buyer rarely has time for seminars. They think
most seminars are low content sales pitches, and many times they are correct. The
challenge here is to communicate how our information adds value to their enterprise
while selling our organization in a subtle, indirect fashion.

2.3.5 Keys to Success

The main key to success with HO buyers is making the product and marketing
positioning clear. Many potential buyers would much prefer our offering to the box only
offerings of the chain stores and mail order sources, if only they possessed adequate
information to conduct a value-add cost/benefit analysis.

Word of mouth is critical in this segment. We will have to make sure that once we gain a
customer, we never lose them. To help accomplish this, we must work to reinvigorate
relationships through successful database marketing, among other means.

85
We must always remember to sell the company, not the product. They have to understand
they are taking on a relationship with AMT, not just buying boxes. Boxes they can get
cheaper elsewhere.

2.4 Target Market: Small Business

Small business in our market includes virtually any business with a retail, office,
professional, or industrial location outside of someone's home, and fewer than 30
employees. We estimate 45,000 such businesses in our market area.

The 30employee cutoff is arbitrary. We find that the larger companies turn to other
vendors, but we can sell to departments in larger companies, and we shouldn't be giving
up leads when we get them.

2.4.1 Needs and Requirements

Our target SBs are very dependent on reliable information technology. They use the
computers for a complete range of functions beginning with the core administration
information such as accounting, shipping, and inventory. They also use them for
communications within the business and outside of the business, and for personal
productivity. They are not, however, large enough to have dedicated computer personnel
such as the MIS departments in large businesses. Ideally, they come to us for a long-term
alliance, looking to us for reliable service and support to substitute for their in-house
people.

These are not businesses that want to shop for rock-bottom price through chain stores or
mail order. They want to be sure they have reliable providers of expertise.

Our standard SBs will be 520 unit installations, critically dependent on local area
networks. Backup, training, installation, and ongoing support are very important.They
require database and administrative software as the core of their systems.

86
2.4.2 Distribution Channels

The SB buyers are accustomed to buying from vendors who visit their offices. They
expect the copy machine vendor, office products vendors, and office furniture vendors, as
well as the local graphic artist, freelance writer, or whoever, to come visit their office to
make their sales.

There is usually a lot of leakage in adhoc purchasing through local chain stores and mail
order. Often the administrators try to discourage this, but are only partially successful.

2.4.3 Competitive Forces

The SB buyers understand the concept of service and support, and are much more likely
to pay for it when the offering is clearly stated.

There is no doubt that we compete much more against all the box pushers than against
other service providers. We need to effectively compete against the idea that business
should buy computers, the heart of their business, as plug-in appliances, that don't need
ongoing service, support, and training.

2.4.4 Communications

One of the best places to reach the target SB is the local newspaper. Unfortunately, that
medium is saturated with pure price only messages, and we'll have to make sure that our
message is excellently stated.

Radio is potentially a good opportunity. Our SB target buyers listen to local news, talk
shows, and sports. Sponsoring a technology discussion/call-in talk show is a possibility.

Seminars are a good marketing opportunity with SBs. Employees are often happy to
leave their normal routines for a day to learn something new.

87
2.4.5 Keys to Success

The main key to success is making the product positioning clear. Many potential buyers
would much prefer our offering to the box only offerings of the chain stores and mail
order sources, if only they knew the tradeoffs.

Word of mouth is critical in this segment. We will have to make sure that once we gain a
customer, we never lose them.

We must always remember to sell the company, not the product. They have to understand
they are taking on a relationship with AMT, not just buying boxes. Boxes they can get
cheaper elsewhere.

3.0 Marketing Plan Strategy

AMT will change its focus to differentiate itself from box pushers and improve the
business by filling the real need of small business and high-end home office for reliable
information technology including hardware, software, and all related services.

3.1 Emphasize Service and Support

We must differentiate ourselves from the box pushers. We need to establish our business
offering as a clear and viable alternative, for our target market, to the price only kind of
buying.

88
3.2 Emphasize Relationships

We need to focus our offerings on small business as the key market segment we should
own. This means the 520unit system, tied together in a local area network, in a company
with 550 employees. Our values training, installation, service, support, knowledge are
more cleanly differentiated in this segment.

As a correlary, the high end of the home office market is also appropriate. We do not
want to compete for the buyers who go to the chain stores or mail order, but we definitely
want to be able to sell individual systems to the smart HO buyers who want a reliable full
service vendor.

89
4.0 Expense Budget Summary

The following marketing budget comes to a total of less than $450K. This is actually a
decrease over the $485K we spent this year on the marketing budget. We believe we can
get more effective marketing with less money, because we are managing the marketing
better with the Marketing Plus software by Palo Alto Software.

90
Type 1997

Ads $285,000

Catalog $25,000

Mailing $113,300

Promo $16,000

Shows $20,200

Literature $7,000

PR $1,000

Seminar $31,000

91
Training $60,000

Service $10,250

Totals $568,750

4.1 Expense Budget by Manager

Budget by Manager: As the following table and chart show, the largest budget piece is
the $151K (almost entirely advertising budget) managed by Ralph.

Manager 1997

Ralph $286,000

Casey $65,700

92
Leslie $75,000

Sonny $111,050

Jan $31,000

Totals $568,750

4.2 Expense Budget by Markets

Most of our budget falls into the general category that applies to both target markets. This
is because much of the spending is impossible to divide into specific market categories.
Of the portion of the budget that is specific, by far the largest share falls into the small
business market, because this tends to lead the market.

Markets 1997

GEN $414,200

93
SB $118,550

HO $36,000

Totals $568,750

4.3 Expense Budget by Type

Budget by type: The largest single expenditure program is advertising, at $150K This is
actually $30K less than we will have spent this year. The second largest is mailing, which
is a priority because of its importance to our database marketing strategy.

Type 1997

Ads $285,000

Catalog $25,000

Mailing $113,300

94
Promo $16,000

Shows $20,200

Literature $7,000

PR $1,000

Seminar $31,000

Service $10,250

Training $60,000

Totals $568,750

4.4 Expense Budget by Product

Budget by product: The nonspecific product spendings amount to the largest total, $235K
of the total $423K. The least is the training spending, at only $26K. The nonspecific
spending on product makes sense, because it is related to general training and
development of our business expertise.

95
Product 1997

GEN $371,200

Systems $90,000

Service $59,750

Software $22,000

Training $25,800

Totals $568,750

5.0 Sales Forecast

The $6 million sales forecast is shown in detail in the tables and charts to follow. This
represents a 20% increase over the present year. We believe it is a conservative forecast,

96
and we are sure we can make our numbers this year as a result of more effective
marketing.

Type 1997

Ads $1,372,500

Shows $82,500

Service $0

Mailing $427,750

Sales $3,693,000

Seminar $272,500

Promo $100,000

97
Catalog $10,000

Totals $5,958,250

5.1 Sales Forecast by Manager

Sales by Manager: As might be expected, Leslie has by far the largest sales quota to
manage. This is suited to our strategy of putting Leslie in charge of the sales force, and
tracking sales through the sales force. Details follow.

Manager 1997

Ralph $1,372,500

Leslie $4,100,750

Sonny $110,000

Jan $272,500

98
Casey $102,500

Totals $5,958,250

5.2 Sales Forecast by Markets

Sales by market: Our most important market, by far, is the small business market. The
sales forecast shown in the following table and chart is a superb reminder of why we need
to focus on the specific target markets.

Markets 1997

GEN $2,543,000

SB $3,133,750

HO $281,500

99
Totals $5,958,250

5.3 Sales Forecast by Type

The data shows that we are still unable to attribute our sales in any significant way to our
sales and marketing program. The "Sales" type shown here is the general sales coming in
that is not tied to a specific type of program. This is obviously by far the largest portion
of our projected sales. Advertising comes second. This doesn't indicate a problem with
the plan or our implementation; it is just a fact of life. Much of our marketing activity
generates sales in ways that don't allow us the luxury of tying it back directly to a specific
program.

Type 1997

Ads $1,372,500

100
Mailing $427,750

Promo $100,000

Sales $3,693,000

Seminar $272,500

Shows $82,500

Service $0

Catalog $10,000

Totals $5,958,250

5.4 Sales Forecast by Product

Sales by Product: The $6 million sales forecast is shown in the following table and chart.
As always, our largest single sales item is the sales of systems. The next largest item is
the general, non-specific sales, which of course will also be mostly systems. The details
follow.

101
Product 1997

GEN $1,372,500

Systems $3,293,500

Service $380,000

Software $799,250

Training $113,000

Totals $5,958,250

6.0 Measurement and Comparison

Overall, we plan to spend 7.28% of sales on sales and marketing expenses, which seems
about in line for our plan, and for our industry. That breaks down to 3.78% of sales for
home offices, 12.79% for small business, and 10.98% for expenses not tied to either one.

102
As broken down by products, we spend about 3% of sales on software and systems, and
16% on service and 23% on training. This breakdown makes sense for our marketing,
because of the impact on software and systems of better training and better service.

7.0 Marketing Organization

AMT is still a small company, despite our recent growth.

Ralph, President, is responsible for general management. He specifically manages the

advertising budget, but otherwise is responsible for sales and marketing as the head of the
organization.

Leslie, our sales manager, is responsible for managing the in-house and the outbound
sales forces. We have also put the mailing programs under Leslie, because they must be
carefully coordinated with the follow-up of the sales force.

Casey, our marketing manager, is responsible for marketing programs including sales
literature, trade shows, the catalog, etc.

Jan, who reports to Casey, will take the key role in the seminar marketing programs.

Sonny, who manages service, will also manage the marketing programs related to
service.

8.0 Critical Issues

1. Tracking and follow-up: will we have the discipline, as an organization, to track results
of the marketing plan and make sure that we implement?

2. Market segment focus: how can we be sure we have the discipline to maintain the
focus?

3. Saying no: can we say no to special deals that take us away from the target focus? Can
we say no to unprofitable deals?

103
 FINDING

S
104
B ef o r e the launch of the prepaid the market s hare of R eliance Infocomm

is 3 0 %.O ut of the total res pondent 73% have s aid to go for the prepaid

co n n ection. This means that A fter the launch of the prepaid the mark et

s h ar e of the R eliance Infocomm has increas ed to 40% of the total

mo b ile us ers .

A s ex pected, other mobile companies A irtel and TA TA Telecom hav e

lau n ched their s ervices in U .P .Eas t, R eliance plan to cons olidate th e

p r ep aid s ervices w ith certain commit ments from the cus tomers w ill help

r etain the market s hare and overcome the competi tion.

105
A ls o it is obs erved that out of total res pondents 54% are uns atis fied

w ith their pres ent service providers and 32% of the total res ponden ts

ar e in teres ted in changing to different s ervice providers .

I t is obs erved that Hutch has 47% market s hare and B S N L has 33%

mar k et s hare while R eliance has 30% market s hare. A s mentioned 32%

cu s to mers w ant to s w itch to other service providers , total gain w ould b e

to R eliance in this cas e.

O u t o f total res pondents , 83% are us ing pos t paid and out of this 56% ,

ar e in teres ted in opting for the prepaid connections .

I t is o bs erved that total res pondents w ho w ere s how n interes ts in optin g

f o r p r epaid 73% s aid to be interes ted in R eliance s ervices .

106
I n ter es tingly 67% res pondents found to be aw are about the R eliance

p r ep aid s ervices and mos tly s een the TV Advertis emen ts and S MS

mes s age received from the R eliance.

6 7 % res pondents are interes ted for prepaid only becaus e of its eas y

av ailab ili ty and 24% s aid to be interes ted becaus e of affordabili ty w hile

1 0 % p referred becaus e of eas y entry.

We can draw that the cons umer prefer to buy the Prepaid card from th e

n ear es t buying point as they correctly feel that they may require to bu y

r ech ar ge coupons on odd times as w ell.A ls o it is difficul t to bu y

P r ep aid C ard from B S N L as they are not eas ily availab le.

A ls o the cus tomers found to be price s ens itive as they s aid that th e

R eliance P repaid are more affordable while eas y entry, that is , th e

in itia l inves tment is als o very low in cas e of R eliance Prepaid car d

co n n ection.100% res pondents s aid to prefer R elianc e call charges , s o

th e market is very much price s ens itive, although they value th e

R eliance s ervices at the level of s atis faction.

M o s t of the res pondents have s aid that they w ant low tariff rates fro m

R eliance and they w ant to keep the s ervices at the low cos ts .Th e

p r o d u ct is found to be s atis factori ly among the res pondents while th e

p r ices are s uch to keep the low s egment of the s ociety and the firs t time

u s er s interes ted to buy it.R eliance has us ed its experience and B ran d

id en tity to build w ide dis tribution netw ork through retailers bas e.

107
A s f ar as the B rand Promotion are concerned R eliance has deployed its

r es o u r ces to all kind of promotion tools to reach the mas s es .

108
RECOMMANDATION

AND

SUGGESSTION

109
 SUGGESTIONS

1 - R eliance Infocomm s hould focus in to opening of more retail

outlets in the remote and outs kirts areas of the city, as firs tly

cons umer prefer to buy from the neares t outlets , s econdly, mo s t

of the low s egment markets are als o res iding there.

2 - R eliance Infocomm s hould cons ider in providing better hands ets

at the low rates as other G S M hands ets are available at much

low er rates , als o the s econd hand market for G S M hands ets ar e

w idely available at the much low er rates .

3 - R eliance Infocomm s hould try to improve their B rand Equity

among the mas s es of the city by rendering proper cus tomer

s ervices .

4 - M arketing communicat ion should aim to s upply beliefs an d

evaluat ions that help the cons umer feel good about his or her

brand choice.

110
CONCLUSION

111
CONCLUSION
1. Consumer inclination towards BSNL.

2. Call Rate play an important role in choosing tele-

service.

3. Quality of service rendered occupy momentous place in

consumers choice for tele-service.

4. Mostly student (School & College going student) prefer

the prepaid connection & Business group prefer the

postpaid.

5. Most of Mobile users are interested to go for the

services to be rendered by Rim.

6. Majority of the customer is not satisfied with the

services of reliance GSM rendered presently.

112
BIBLIOGRAPHY

113
REFERENCE

• M A R K E TI NG M A N AG E M E N T : Ph ilip K otler

• M A R K E TI NG M A N AG E M E N T : R ajan S axen a

• R E LI A N C E IN F O C MM LTD . WB E S I TE

• R E LI A N C E I FO C O MM LTD . IN TE R N A L R E C O R DS

• www.reliance.com

• www.bseindia .com

• www.yahoofinance.com

• www.reliancecapital.com

• www.reliancelife.com

114
QUESTIONNAIRE

N A ME : ----------------------------------------------------------

A GE : ----------------------------------------------------------

S E X : ----------------------------------

OC C U PA TI ON : --------------------------------------------------------------

D E SI GN A T I ON : ------------------------------------------------------------

A DD R E SS : --------------------------------------------------------------

T E L . N O.:---------------------------------------------------------------------- -

1 - A R E Y OU A C ELL PH O N E U S ER ?

YE S

115
 h NO

2 - I F Y ES , WHO IS TH E S ER V IC E PR O V ID ER ?

R E L IA N C E

BSNL

HU T C H

OT HE R S

116
3 - TO WHA T EX TEN T Y OU A R E S A TIS F IED WITH TH E S ERV IC E

U S IN G ?

E X C E L L EN T

V E RY GOOD

GOOD

S A TI S FA C T ORY

U NS A T IS FA C T OR Y

4 - WH IC H S CH EEM E DO Y OU P R EF ER ?

PR E PA I D

POS T PA I D

W HA T T Y PE OF S ER V IC E Y OU WAN T T O US E ?

GS M

C D MA

5 - I F P R EP A ID , TH EN WH Y ?

E A SY E N T RY C OS T

117
 FI T S T O T HE BU D GE T

E A SY A VA I L A BI L I T Y

A NY OT HE R

6- DO YO U WAN T TO CH A NG E FR O M EX IS TIN G S ER V IC E

P R OV ID ER TO R ELIA N C E PR E/P O S T PA ID S ERV IC ES ?

YES

NO

7 - I F Y ES , P LEA S E G IV E R EAS O NS :

- - - - - - - ------------------------- -------------------------------------------------- -

- - - - - - - ---------

8 - WH IC H C A LL R A TE DO YO U P R EF ER ?

118
R E LI A NC E (R s 0.50/p er min .) R E L IA N C E (0.1/p er s ec)

B S N L (R s .0.49/p er min )

HU T C H (R s 0.60/p er min )

9 - D O YO U A WA R E AB O U T TH E R ELIA N C E P ER EPA ID S ER V IC ES ?

YES

NO

1 0 - A R E Y OU WILLIN G TO OP T F O R TH E N EW P R EP A ID S ER V IC E

F R OM R ELIA N C E?

YES

NO

1 1 - WH A T DO YO U TH INK A BO U T TH E R -WO R LD S ER V IC ES

O FF ER ED BY R ELIA N C E?

E X C E L L EN T

119
 V E RY GOOD

GOOD

NO USE

1 2 - Y OU R EX P EC TA TIO N F RO M R ELIA N C E P R EP A ID S ERV IC ES ?

L OWE S T T A RR I F PL A N

V A LU E R OA MI N G S ER V IC E S

A FFOR D A B L E IN I T IA L A MOU N T

A DV A NC E D HA ND S E T FE A T UR E S

120