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SUMMER PROJECT REPORTON

Increase in market share and store productivity of Reliance Communication in

Modern trade outlets

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

EASTERN INSTITUTE OF MANAGEMENT KOLKATA

FOR THE AWARD OF

MASTERS IN BUSINESS ADMINISTRATION

OF THE UNIVERSITY OF KALYANI

By

Koushik Kumar Dutta

MBA (2009-2011)

UNDER THE GUIDANCE OF

Mr.Siladitya Ghosh

Manager (Modern Trade)Reliance communication

(Internal guide)


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Title Page

Title of the project Increase in market share and store productivity of RelianceCommunication in modern trade outlets.

Students Name : Koushik Kumar Dutta

Programme of the study : Master of Business Administration

Session of Study : 2009-2011

Duration of the project : Two months (May and June,

2010).

Name of Internal Guide : Prof.Sushmit Mitra

Name of external guide : Mr. Siladitya Ghosh

Name of the company : Reliance Communication Industry

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Students Declaration

It is declared that the project titled Increase in market share and store productivity of

Reliance Communication in Modern Trade outlets has been done by me and has not been

submitted in part or full to any authority for award of any Degree/Diploma.

Signature of Student(Koushik Kumar Dutta)

Date:

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Certificate From Internal Guide

This is to certify that the work embodied in the project report titled Increase in market share

and store productivity of Reliance in modern trade outlets done by Koushik Kumar Dutta

under my supervision.

Signature of the faculty

(Prof. Sushmit Mitra)Eastern Institute of Management

Kolkata, West Bengal.

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Certificate From External Guide

This is to certify that the work embodied in the project report titled Increase in market share

and store productivity of Reliance in modern trade outlets successfully done by Koushik

Kumar Dutta under my supervision.

Signature of the external guide

Mr.Siladitya Ghosh

Manager (Modern Trade)Reliance communicationReliance House, Kolkata

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Acknowledgement

I take this opportunity to express my sense of indebtedness and sincere gratitude to all thosewho helped me in completing this project. The successful task would be incomplete without themention of people whose constant guidance and encouragement crown all efforts with success.

The individual and personal efforts of everyone concerned were memorable and I am sincerelythankful to my guide Prof. Sushmit Mitra of Eastern Institute of Management for providingme the required information and resources and helping me throughout for the successfulcompletion of the project.

I am also grateful to all other faculty members of our Institute whose simplified teaching

technique helped me to gain more understanding of the subject.

I also want to convey my gratitude to my external guide Mr. Siladitya Ghosh, Manager,Modern trade, Mr.Arnab Bannerjee, Organized Retail Head (Kolkata) and Mr.Samrat

Bannerjee, Modern Trade Executive (Kolkata sub-urbs) ofReliance Communication andmany other employees of the organization without whose co-operation and guidance it wouldnot have been possible to complete my task and to achieve my goal.

I am very much thankful to all the staffs of The Mobile Stores of ESSAR group and all thepromoters at TMS Sonarpur with whom I have worked for last couple months, and without theirwhole-hearted support I could have never been able to gather all the required information anddata.

I would also take an opportunity to thank all the respondents, who had spent their precious timein answering the questions and filled the place of true representatives for deciding the nature ofthe problem.

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Preface

A project is a scientific and systematic study of real issues on a problem with the application of

management concept and skills. The study can deal with small or big issues in any division of

an organization. It can be a case study or market research where a problem has been dealt with

through the process of management. The essential equipment of a project is that, it should

contain scientific collection of data, analysis and interpretation of data leading to valid

conclusion.

Summer Training is an essential part in MBA curriculum. It enables the students to share the

real experience in industry. My summer training has been placed in Reliance communicationlimited, Kolkata, West Bengal for the period of 8 weeks.The topic of my project was Increase in market share and store productivity of Reliance inmodern trade outlets.

This project report tends to give a sharp picture of consumer buying behavior and their taste andpreferences towards the products and services of telecom industries.

I hope, this study can be of some help to the telecom industries for the improvement of their

products and services which may lead to growth of sales.

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Table of Content

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Executive Summary

An executive summary is the synopsis of an overall works of any project. The purpose of whichis to summarize the key points of a document for its readers, saving their time and preparingthem for upcoming content.

The study of this project depicts a research, looking into the nuances of consumer behavior,demographics preferential attractiveness of the different brands in telecom industries.

The scope of the research can also be widened to the extent of customer preferences and theirbehavioral patterns.

Topics Page No.Declaration by Student 3Declaration by Internal Guide 4

Declaration by External Guide 5Acknowledgement 6Preface 7Table of content 8Executive Summary 9Introduction

Project 10 The Modern Trade 11 The Mobile Store 12-13 GSM & CDMA Technology 14-15 Industry 16-18 Company profile 19-24

Objectives 25Research Methodology 26-28Limitations of the study 29Data Analysis and Interpretation 30-48Findings & inferences 49Recommendations

50Conclusion 51Annexure 52-56Bibliography 57

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The research tries to explore the awareness and preference of different brands of networkoperators of telecom industries among the consumers. It also tries to decipher about the impactof brand awareness, advertisement, price and quality service on the buying decision of aconsumers.

Apart from that it has been tried to get the responses from the respondents of different areasunder the survey that what they perceive and what they expect while buying their telecom

products either from the local telecom shops or from any organized retails.

Finally, in this project it has been tried to find out that how much inclination and preference ofconsumers have on telecom services towards the GSM & CDMA products of RelianceCommunication in comparison with other players of this industry and how much demand of its

products in the modern trade outlets.

Project Introduction

This summer internship project is on the study of the differences in pattern of consumer

behavior during purchase of their telecom products( here ,deals only with GSM connection of

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different network operators) either through organised, branded retail outlets( may be called Modern Trade Outlets) or through local shops.In this project it is also tried to find out the factors that influence people on their selection of a

particular brand, choosing network operators and purpose for buying their telecom products.

Through this project many things came into the light like the preference pattern of consumerduring purchase of their telecom products(GSM Sim cards and its network), scope of telecom

business Reliance Communication in Kolkata market and its sub-urbans areas , consumerpreference on their buying trend through branded retail outlets and local unorganised outlets.

The project especially deals with the major players of telecom network operators in kolkata andits sub-urban areas, like Reliance,Airtel,Vodafone,Aircel, Tata -Docomo , Idea etc. , Servicesand different features/ Scheme offered by the operators and the factors that influence store

productivity of a particular brand and scope of its enhancement for further increase of sales andproductivity.

Modern Trade

Modern format retail is witnessing phenomenal growth, driven by the impact of increasing

urbanization, the new well-traveled, knowledgeable Indian consumer and a youth-driven

culture. In its official estimate for the current fiscal ending in March, the government said that

the economy, Asia's fourth-largest, was expected to grow at 9.2 per cent.

Strong economic growth has brought with it new sets of Indian consumers. The booming young

adult population with unprecedented levels of disposable income is more conscious of the latest

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trends and fashion. Enhanced media penetration and greater connectivity also are making

consumers more knowledgeable and discerning.

All these factors are rapidly changing the needs and aspirations of consumers. Schedules are

also getting tighter, with the time for professional commitments and regular chores getting

limited. Hence, the "convenience" factor has a major influence on purchase decisions.

Modern trade, the characteristic of which is having everything under one roof and with a

great array of products displayed in an uncluttered fashion where the touch and feel factor

prevails, is providing an environment to access products driven by convenience and fashion.

Modern trade in India

India with about 7.8 million retail stores, but most of those are traditional ones, which only

recently started making way for hypermarkets, supermarkets and specialty stores. Modern trade

in India is witnessing tremendous growth, especially in Tier I cities.

It accounts for 4 per cent of urban FMCG sales but for the top 15 metros it is about 9.7 per cent

of the total FMCG sales. For South Indian metros it touches about 16 per cent, because modern

trade started there a little earlier. There are more than 3,430 modern trade stores in India now.

Modern stores and their challenges

It's a very competitive situation with more and more new players entering the market. There are

Reliance, the Tatas, the Birlas, ITC, RPG and foreign players like Wal-Mart now. India is a

market where from time immemorial existed the mom and pop stores.

Looking at our vast consumer profiles, both traditional stores and modern format retail stores

will exist side by side. People with low incomes will keep visiting local stores for the credit

facilities they get and the frequent top-up shopping they do whereas the middle and upper

income households would love to do their monthly shopping from the modern format retail

stores with occasional top-up shopping from the local grocer.

The other end of the spectrum would be rural India, where again a lot is happening but it will

take time for its effect to be felt.

About The Mobile Store

Mr. Srikant Gokhale, CEO. The Mobile Store Limited heads India's first countrywide chain oftelecom retail outlets. "The Mobile Store" is an Essar Group venture, set to introduce a pan-

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Indian network of retail telecom outlets. The Mobile Store offers a world class shoppingenvironment, with state of the art technology.

The Mobile Store format is a one stop mobile solution shop that provides, multi brandhandsets, accessories, connections, repairs, VAS etc all under one roof.

It currently has more than 1050 outlets and the vision is to have a network of 2500 stores by theend of 2010 across 650 cities, thus covering virtually every major town in every state acrossIndia.

The Mobile Storeoutlets are in three formats:-

- Large - 1000-1500 square feet

- Medium - 800-1000 square feet and

- Corner - 150-200 square feet, with smaller formats located primarily in large malls.

Key thrust areas for the retail format are:-

- Comprehensive Product Range

- Knowledgeable Store Staff & Interactive Environment

- Competitive Prices and Handset Repairs.

The Mobile Store caters to the Indian consumer's choice of the widest and most comprehensiverange of mobile phones with special offers from all the key brands available across the globe. Itoffers complete telecom solutions right from handset purchase to the choice of service operatorand miscellaneous services like monthly bill collections etc., the stores also offer connections(pre-paid and post paid), accessories and VAS including the latest ring tones, wallpapers and

gaming and prompt after sales service, available not only in the city of purchase but in all TheMobile Store outlets across the country.

The Mobile Store has undertaken an extensive training program to equip all its employees within-depth knowledge of the products and brands available at the store, thereby allowing them to

provide the right kind of guidance to the customer.

The Mobile Store has categorized its mobile device offerings into consumer segments keepingin mind the profiles and needs of different consumers.

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The unique segments available in The Mobile Store are:

- Business - PDA & Smartphone, Emails, data transfer etc.

- Lifestyle - Fashion phones, Look and elegance,

- Fun - Multimedia & music, camera, games, wacky ring tones and wallpapers

- Value for Money - Special offers, discounts and budget phones.

All major handset brands like Nokia, Sony Ericsson, LG, Samsung, Motorola, Fly, andBlackberry are available at the store. The Mobile Store has also tied up with all leadingoperators including Airtel, Vodafone, BPL, Idea, MTNL/BSNL and Reliance, Tata Indicom.

GSM Technology

Global System for Mobile Communications: originally from Groupe Special Mobile, is themost popular standard for mobile telephony systems in the world. The GSM Association, its

promoting industry trade organization of mobile phone carriers and manufacturers, estimatesthat 80% of the global mobile market uses the standard.

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GSM technology is simply the technology that most probably 80% of mobile users use formaking calls on their mobile phones. In a way, it is the standard and default wireless protocolused for mobile communication.

GSM started back in 1982 and was then named after the group that devised it, Groupe Spcial

Mobile. The official protocol was launched itself in Finland in 1991. It is now called GlobalSystems for Mobile communications.

GSM is considered a 2G (second generation) protocol. It works with cells, which is why a GSMnetwork is also called a cellular network, and phones working on GSM are called cell phones.A GSM network is split into cells, each one of which covers a small area. Devices (phones) arethen located and communicated with through these cells.

It enables international roaming arrangements between mobile phone operators, providingsubscribers the use of their phones in many parts of the world. GSM differs from its predecessortechnologies in that both signaling and speech channels are digital, and thus, GSM is considered

a second generation 2G mobile phone system.

The implementation of the GSM standard has been an advantage to both consumers, who maybenefit from the ability to roam and switch carriers without replacing phones, and also tonetwork operators, who can choose equipment from many GSM equipment vendors. GSM also

pioneered low-cost implementation of the short message service (SMS), also called textmessaging, which has since been supported on other mobile phone standards as well. Thestandard includes a worldwide emergency telephone number feature

A GSM network consists mainly of connection devices (gateways etc.), repeaters or relays,which people commonly call antennas these massive metal structures that stand as hightowers -, and the mobile phones of users.

The SIM Card

Each mobile phone is connected to a GSM network and identified in it through a SIM(Subscriber Identity Module) card, which is a small card that is inserted inside the mobile

phone. Each SIM card is assigned a phone number, hard-coded into it, that is used as uniqueidentification element for the device on the network. This is how your phone rings (and notanyone elses) when someone dials your mobile phone number.

SMS

GSM people have developed a communication system that is a cheap alternative to thesomewhat expensive voice communication; it is the Short Messaging System (SMS). Thisconsists of transmitting short text messages between mobile phones using phone numbers foraddressing.

The CDMA Technology

CDMA stands forCode Division Multiple Access, a digital cellular technology that usesspread-spectrum techniques. Since it works on the principle of Spread spectrum. Herewith the

help of a CODE, data signal is spread like a noise like signal which is unable to detect by

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others. it provides security. Since the spreaded signal is below the noise level noise has noeffect on the signal. It provides noise reduction.

CDMA is a military technology first used during World War II by English allies to foil Germanattempts at jamming transmissions. The allies decided to transmit over several frequencies,

instead of one, making it difficult for the Germans to pick up the complete signal. BecauseQualcomm created communications chips for CDMA technology, it was privy to the classifiedinformation. Once the information became public, Qualcomm claimed patents on thetechnologyand became the first to commercialize it.

Both data and voice are separated from signals using codes and then transmitted using a widefrequency range. Because of this, there are more space left for data transfer (this was one of thereasons why CDMA is the preferred technology for the 3G generation, which is broadbandaccess and the use of big multimedia messages). 14% of the worldwide market goes to CDMA.

GSM Vs CDMA

GSM:

GSM is the most used cell phone technology in the world, with 73% of the worldwide

market.

GSM operators say it is better because it uses a SIM chip, it is the most used technology

worldwide and it is more secure and more advanced.

It has more services and allows more data transfer.

GSM SIM card advantage, that allows you to change your cell phone and keep your

phone list stored.

Roaming readiness and fraud prevention are two major advantages from this technology.

CDMA:

CDMA has almost 14% of the worldwide market.

CDMA followers say it is better because it is the 3G generation chosen technology and

GSM will migrate to CDMA since CDMA is more advanced.

CDMA operators with a service that allows you to store your phone book on the

operator's database, allowing you to recover your phone book even if your cell phone is

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stolen (which is not possible with GSM, since if your cell phone is stolen, your SIM

card will be stolen together)

About Industry

Telecommunication Industry in India

The Indian telecommunications industry is one of the fastest growing in the world. According

to the Telecom Regulatory Authority of India (TRAI), the number of telephone subscriber base

in the country reached 653.92 million as on May 31, 2010, an increase of 2.49 per cent from

638.05 million in April 2010. With this the overall tele-density (telephones per 100 people) has

touched 55.38. The wireless subscriber base has increased to 617.53 million at the end of May

2010 from 601.22 million in April 2010, registering a growth of 2.71 per cent.

There are three types of players exists in ' Telecom Industry India ' community -

State owned companies like - BSNL and MTNL. Private Indian owned companies like Reliance Infocomm (Now Reliance

communication) and Tata Teleservices. Foreign invested companies like - Hutchison-Essar (now Vodafone- Essar) , Bharti-

Airtel, Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications etc.

Rural Telephony

According to the Economic Survey 2009-10, rural tele-density has increased from 1.2 per centin March 2002 to 15.1 per cent in March 2009 and further to 21.2 per cent at the end ofDecember 2009.

Rural telephone connections have gone up from 12.3 million in March 2004 to 123.5 million inMarch 2009 and further to 174.6 million in December 2009.

The share of private sector players in the total telephone connections has steadily increasedfrom around 14 per cent in 2005 to 31 per cent as on December 31, 2009. During 2008-09, thegrowth rate of rural telephones was 61.5 per cent as against 36.7 per cent for urban telephones.

The private sector has contributed significantly to the growth of rural telephony by providing81.5 per cent of the rural phones as on December 31, 2009.

It is proposed to achieve rural tele-density of 25 per cent by means of 200 million ruralconnections by the end of the Eleventh Five Year Plan.

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The government plans to connect all revenue villages in India either through landline, mobile orWLL by February 2011. According to the Minister of State for Communications and IT, Mr.Sachin Pilot , about 96 per cent of the revenue villages have already been connected and Theremaining 25,000 villages will have connectivity by February 2011. The government further

proposes to provide broadband connectivity to all the panchayats in the country by 2012.

Major Investments

The booming domestic telecom market has been attracting huge amounts of investment whichis likely to accelerate with the entry of new players and launch of new services. According tothe Department of Industrial Policy and Promotion (DIPP), the telecommunications sectorwhich includes radio paging, mobile services and basic telephone services attracted foreigndirect investment (FDI) worth US$ 2,554 million during 2009-10.

The cumulative flow of FDI in the sector during April 2000 and March 2010 is US$ 8,930.61million.

Further, the Indian telecom sector is expected to witness investment of around US$ 40 billionduring the current fiscal, as per the Telecom Equipment and Services Export PromotionCouncil. With the development of 3G, expansion of the current networks and widening ofBroadband Wireless Access (BSA) network, the investment in the sector is likely to increasefrom the US$ 20 billion witnessed last year.

As per an industry report the telecom industry witnessed merger and acquisition (M&A) dealsworth US$ 22.73 billion during April-June 2010, which represented 67.19 per cent of the totalvaluation of the deals across all the sectors during the period analysed.

Biggest deals in the year 2009-10 :

The sector had seen M&A deals of around US$ 439.4 million during April-June 2009.

The biggest M&A deal in the sector was made by Anil Ambani's Reliance Communication Ltdthat merged GTL infrastructure Ltd, its telecom tower business, for US$ 11 billion.

Other major M&A deals included acquiring of Kuwait-based Zain telecom's African business

for US$ 10.7 billion by Bharti Airtel and acquisition of Infotel broadband for US$ 1032.26million by Reliance Industries.

Norway-based telecom operator Telenor has bought a further 7 per cent in Unitech Wireless fora little over US$ 431.3 million. Telenor now has 67.25 per cent hold of the company. Telenorhas now completed its four-stage stake buy and has invested a total of US$ 1.32 billion inUnitech Wireless as agreed on with the latter last year.

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The Road Ahead

According to a report published by Gartner Inc in June 2009, the total mobile services revenuein India is projected to grow at a compound annual growth rate (CAGR) of 12.5 per cent from2009-2013 to exceed US$ 30 billion. The Indian mobile subscriber base is set to exceed 771million connections by 2013, growing at a CAGR of 14.3 per cent in the same period from 452

million in 2009. This growth is poised to continue through the forecast period, and India isexpected to remain the world's second largest wireless market after China in terms of mobileconnections.

"The Indian mobile industry has now moved out of its hyper growth mode, but it will continueto grow at double-digit rates for next three years as operators focus on rural parts of thecountry," said Madhusudan Gupta, senior research analyst at Gartner. "Growth will also betriggered by increased adoption of value-added services, which are relevant to both rural andurban markets."

Mobile market penetration is projected to increase from 38.7 per cent in 2009 to 63.5 per cent in2013, according to Gartner.

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About Company

An Overview of Reliance Communication industry

Communications formerly known as Reliance Infocomm, along with Reliance Telecom andFlag Telecom, is part of Reliance Communications Ventures (RCoVL). RelianceCommunications Limited founded by the late Shri Dhirubhai Hirachand Ambani (1932-2002),is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The Reliance AnilDhirubhai Ambani Group currently has a net worth in excess of Rs. 64,000 crore (US$ 13.6

billion), cash flows of Rs. 13,000 crore (US$ 2.8 billion), net profit of Rs. 8,400 crore .TheEquity Shares of RCOM are listed on Bombay Stock Exchange Limited and National StockExchange Limited.

Reliance Communications is India's truly integrated telecommunications service provider TheCompany has a customer base of 105 million including over 2.5 million individual overseasretail customers. It ranks among the Top 5 Telecom companies in the world by number ofcustomers in a single country. Reliance Communications corporate clientele includes 2,100Indian andmultinational corporations, and over 800 global, regional and domestic carriers. A

pan-India, next generation, integrated (wireless and wire line), convergent (voice, data andvideo) digital network that is capable of supporting best-of-class services spanning the entirecommunications value chain, covering over 24,000 towns and 600,000 villages has beenestablished by Reliance Communications.

A dream come true

The late Dhirubhai Ambani dreamt of a digital India an India where the common man wouldhave access to affordable means of information and communication. Dhirubhai, who single-handedly built Indias largest private sector company virtually from scratch, had stated as earlyas 1999: Make the tools of information and communication available to people at anaffordable 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

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commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th birthday,though sadly after his unexpected demise on 6 July 2002.

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

Today, Reliance Communications is revolutionizing the way India communicates and networks,truly bringing about a new way of life.

Think big. Think different. Think ahead

Dhirubhai preached and personally practised one mantra throughout his life: Dream withconviction.He built the Reliance empire from scratch and, in a short span of 25 years, it catapulted to

become one of the top Fortune 500 corporations of the world an achievement unparalleled inhistory.

He was deeply rooted in traditional Indian values, and at the same time, Dhirubhai possessed a

very modern outlook - truly that of a 21st century person. His corporate philosophy was short,simple and incredibly effective: Think big. Think different. Think fast. Think ahead. Aimfor the best. This was clearly reflected in his passion for mega-sized projects, as well as hisfascination for cutting-edge technology and desire to always achieve the highest possible

productivity. At Reliance, Dhirubhai was a pillar of inspiration for one and all. By practicingwhat he preached, he inspired and encouraged everyone to surpass the best in the world.

Dhirubhai fully realised that true empowerment of the people is possible only througheducation. Being an effective communicator, he continued to inspire, guide, educate andmotivate everyone through his communications. He was a firm believer in the power ofinformation and communication, and how it can be utilised and turned to the advantage of oneand all, by making time and distance irrelevant.He would always say that if a telephone call could be made cheaper than a postcard, it wouldtransform every home, empower every Indian, remove every obstacle to opportunity andgrowth, and tear apart every barrier that divides Indian society. He was convinced that infocomcould energise enterprises, drive governance, and render learning an interesting experience,apart from making life exciting

Keeping his conviction as our credo, Reliance Communications is committed to transformDhirubhais dream into a reality

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Main Subsidiaries

1. Reliance Telecommunication Limited (RTL)

In July 2007, the company announced it is buying US-based managed Ethernet and applicationdelivery services company Yipes Enterprise Services for a cash amount of Rs. 1200 crorerupees (equivalent of USD 300 million). The deal was announced of the overseas acquisition,the Reliance group has amalgamated the United States-based Flag Telecom for $210 million[roughly Rs 950 crore (Rs 9.50 billion)].RTL operates in Madhya Pradesh, West Bengal,Himachal Pradesh, Orissa, Bihar, Assam, Kolkata and Northeast offering GSM services.

2. Reliance Globalcom

RGL owns the worlds largest private undersea cable system spanning 65,000 km seamlessly

integrated with Reliance Communications over 110,000 km of domestic optic fiber provides arobust Global Service Delivery Platform connecting 40 key business markets in India, theMiddle East, Asia, Europe, and the U.S.

3. Reliance Communications Infrastructure Limited (RCIL)

RCIL provide Internet Data Centre (IDC) services located in Mumbai and Bangalore. RCILcurrently has IDC capacity of 304,000 sq ft with the market share close to 60%.

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4. Reliance Big TV Limited

Reliance Big TV launched in August 2008.It TV offers its millions of customers DVD quality pictures across a bouquet of over 230 channels using the latest, state-of-the-art MPEG 4

technology.

5. Reliance Infratel Limited (RITL)

RITLs business is to build, own and operate telecommunication towers, optic fiber cable assetsand related assets at designated sites and to provide these passive telecommunicationinfrastructure assets on a shared basis to wireless service providers and other communicationsservice providers under long-term contracts.

Products Profile

1. Reliance GSM sim card:

2. Reliance CDMA sim card:

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3. Top-up cards:

Reliance Top-up cards are available from Rs.10 to Rs. 500.

Available with retail stores deals with telecom products.

Easy to get balance to make calls.

4. Special Tariff Vouchers :

To reduce call rates according to needs. Available in different plans such as, free on-net calling, night pack etc.

SMS cards for free or unlimited sms.

5. Reliance STD Calling Card:

The Reliance STD Calling Card on affordable rates for local and STD calls.

This is a rechargeable account-based prepaid card that can be used from Reliancephones (Reliance fixed, fixed wireless and mobile postpaid or prepaid) only andcannot be used from a PCO.

With this card, STD calls can be made even from Reliance phones which does not havean STD facility.

The cards are available in a range of denominations to suit your budget & calling needs.

Available in Reliance World or Reliance Mobile Store as well as prepaid retail outlets.

6. Reliance Global Calling Card:

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The Reliance Global Calling Card is available in a range of denominations to suitindividual calling needs & budget.

Using Global Calling cards, you can make ISD calls from any Reliance phone, (exceptBlackBerry phones) be it postpaid (Reliance Mobile / Fixed Wireless phone) or Reliance

Mobile prepaid.

The Reliance Global Calling Card also gives exceptional voice clarity and superiorcalling experience, all at exceptionally attractive rates.

7. Reliance net connect (Data card) : Get the Reliance Netconnect Broadband+ advantage.

Wireless Broadband for laptop & desktop.

20 times faster with speed upto 3.1Mbps in Reliance Broadband + Network.

Fastest uploads at a speed of upto 1.8 Mbps

High Speed 1X network to ensure seamless connectivity across 24000 towns & 6 lakhvillages, as well as along major highways, railway routes, airport lounges and remotelocations in India.

Optimized for running rich media / heavy applications such as video conferencing,

video streaming, electronic surveillance, online multiplayer gaming and heavy filetransfers.

Simply plug & play

8. Fixed wireless phone :

Reliance Fixed Line Phone is an intelligent landline phone service, which not onlyallows you to make and receive calls, but also adds convenience to voicecommunication.

It provides a host of intelligent features and services, which are designed to improveuser experience right from the first call.

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Hands free talking.

Information on missed and received calls or using various phone services.

Reliance Fixed Line Phone comes with a sleek and smart telephone instrument thatmakes telephony easy and enjoyable.

9. Reliance Big T.V. :

Digital Picture - Crystal clear picture with MPEG 4 Technology.

Digital Sound - True theatre sound with awesome CD quality.

No more cable woes such as service breakdowns or channel shifting. Reliable andconsistent viewing.

Flexible, value for money packages.

Over 230 channels for familys complete entertainment needs.

Objectives

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To determine the market share of Reliance Communication in modern trade outlets.

To find out in-store productivity of the Reliance products in modern trade outlets.

To understand the buying behavior of consumers.

To find out the factors influence in their buying decision.

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Research Methodology

Research methodology is a way to systematically do the research. It may be understood as a

science of studying how research is done scientifically. The most desirable approach with

regards to the selection of the research methodology depends on the nature of particular work,time and resources available along with the desire level of accuracy.

Approach to the Research:

This project works on quantitative approach, which is reliable and beneficial in this type ofproject. In quantitative data collection or research we seek to quantify the data and typicallyapply some form of statistical research or analysis using various statistical tools.

Quantitative research applies to quantify the data and generalized the result from the sample tothe population of interest. In this research a large number of samples of representative are taken,

the method of data collection is structured, data analysis is statistical and outcome isrecommended a final course of action.

1. Define the problem & research objectives -

In the first stage, in this project I tried to define the problem in broader way i.e.

Problem:

Why the Demand for Reliance Communications GSM network service is declining in Kolkataand its sub-urban areas?

Objective:

Increase in market share and Store productivity of Reliance Communication in Modern Tradeoutlets.

Since the objective of the study has been defined, i.e. Increase in market share and Storeproductivity of Reliance Communication in Modern Trade outlets.

For this the hypotheses undertaken are

1. People do not like to buy telecom products of Reliance through organized retails

(Modern Trades outlets).2. People are not service conscious but are price conscious.

The above hypotheses were formed on the basis of the following:-

1. Study of secondary source of information.

2. Analysis of selected areas.

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Research design

- Independent variable (Income & Place of purchase)

- Dependent variable (Preference of consumer)

- So it is Descriptive as well as Hypothesis Testing (Causal Relationship) Research study.

Study of the secondary source of information:-

The quickest and the most economical way to find possible hypothesis was to take theadvantage of the work done previously on the similar grounds. For this I accessed the internetand collect some data regarding different telecom industries.

From this search I came to know about the telecom industry and the scope of its business inKolkata and its sub-urban areas.

2. Develop the research plan -

In the second stage of research, developing the most efficient plan for gathering the informationneeded to achieve the objective of the project successfully.

There are number of steps involved in this

Data sources

(a)Primary data:

Primary data have been collected by personal interviewing method using a properquestionnaire. Since a questionnaire is a systematic and structured manner of collecting data forconducting experiment. The nature of the questionnaire is very inductive and fundamental. Ithas been kept in a proper framework to make it clear to all the consumers/ Retailers.

(b)Secondary data:

Secondary data have been collected from various websites, such as www.google.com,www.rcom.com, www.ibef.org,www.cellphones.about.com etc.Apart from that I also took the help of the text books like Research Methodology- byC.R.Kothari and Marketing Research by G.C. Beri and Consumer Behavior (11 th Edition)

by Leon.G.Schiffman & Leslie.L.Kanuk for the information regarding the Basic concepts aboutmarketing research process, consumers buying behavior etc.

Sampling Design

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The survey was conducted in the different places of Kolkata and its surrounding areas. Theareas covered mainly were south cluster of Reliance communication which mainly covers southKolkata and south 24 Pgs under which some of the following places were Baruipur, Sonarpur,Tollygunge, Gariahat, Jadavpur, Baghajatin, Goalpark, Santoshpur and Park Street.

Types of Universe - Consumers & Organized Retail outlets (The Mobile Stores)

Sampling unit - Individual consumers & Store Managers/ staffs.

Source list - List of Modern trade outlets From the Company. .

Sample size - 120 respondents and 10 modern trade retail outlets.

Parameters of interest - Income, Age & occupation groupSampling method - Judgmental

Field work

In order to get the questionnaire filled I visited the above mentioned places and approachedpeople of that locality, apart from that I also visited some of the TMS retail stores (ModernTrade Outlets).

During the survey and interviewing process respondents were cleared, if they had any doubtsregarding the questions asked during the field work.

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Limitation of Research study

o The primary research highly depends on consumer preference which keeps on

changing.

o Whole universe could not be taken into account due to limited time. Since we had to

workas promoter in the store from 11AM to 9PM so we did not get enough time for our

survey.

o The data provided here are not of exact values, since neither the store manager nor the

other members are allowed to provide exact information so just have given anapproximate value.

o Conclusions of the research are applicable only to the regions covered under the

primary survey.

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Data Interpretation & Analysis

Demographic Profile

To get the factual opinion from the consumers I visited some of the areas under the

south cluster of Kolkata circle of Reliance communication. During the survey I

interviewed 120 respondents from the following areas mentioned below in the graph

showing representation of the respondents from such areas.

In the process of survey I approached both the categories of gender and out of 120

respondents 88 people belong to the male category and rest 32 people were from the

female category.

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After the processing of the data it was found that most of the respondents fall in the

range between 20yrs to 40 yrs which represented almost 80% of the total 120

respondents and which reflected a profile of quite a young group of consumers.

0 10 20 30 40 50

Upto 20 yrs

21 -30

31 -40

Above 40

12

34

46

28

Age Wise

Upto 20 yrs

21 -30

31 -40

Above 40

If we observe data of all the respondents according to their occupations wise we can

see that most of the respondents belong to the Students category which consist 32%

followed by the Business category which form 26% and the categories belong to the

Self employed & Housewife showing their representation with almost 12% only.

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24

31

1314

38

Occupation Wise

Service

Business

Self employed

Housewife

Student

Consumers view

1.From the responses of 120 people of different categories I found that most of the people i.e.91 out of 120 use GSM technology for their mobile connection which solely consist 76% of the

total sample followed by 15% CDMA users. Among the respondents only 11 (1.e. 9%) people

use both the technology.

1. Proportion of mobile users between GSM & CDMA:

34

91, 76%

18, 15%

11, 9%Technology wise

GSM

CDMA

BOTH


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2.When checked for the users of different players in CDMA category I found that out of 29CDMA users 17 people used Tata indicom consisting almost 59% followed by Reliance with 11

people which consist approximately 38% and only 3% people of the total CDMA users usedVirgin.

2. Proportion of users among CDMA:

17

11

0 1

-5

0

5

10

15

20

Tata Reliance MTS Virgin

CDMA Users

CDMA Users

Linear (CDMA

Users)

3. Total numbers of consumer in GSM category were 102, out of which 31 respondentssubscribed Airtel connections, 23 people subscribed connections of Vodafone followed byAircel, Reliance, Docomo and Idea. In this category Airtel led with almost 30%.

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3. Proportion among GSM users

4. If we look at the data we find that almost 77% of the total respondents use prepaidconnections and only 23% among them use postpaid connections that mean buying pattern ofGSM connections is much more ahead than CDMA connections. This shows that most of the

people prefer GSM connection to CDMA one.

4. Proportion of mobile users between Prepaid & postpaid:

5. On asking the respondents that what factors they considered the most while taking aconnection and asked to rank them according to their priority the following observations cameout. Almost 102 respondents i.e. 85% people believed that good connectivity would be the 1 st

choice where as 85 people which consist almost 71% rated Low call tariff as their 2 nd

preference followed by Low SMS tariff in 3rd position which consisted approximately 63%

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of the total respondents. Following graph shows the preference pattern of all the respondentsaccording to their priority over factors while taking connections.

5. Factors considered while taking connections:

6. When the respondents were asked whether they were satisfied with the services/offersprovided by their existing operators, on this 72 respondents said that they were very satisfied

followed by 21 respondents expressed their opinion that they were somewhat satisfied withtheir existing operators. Among all the respondents 11 people were neutral where as 16

people said that they were somewhat dissatisfied.

6. Level of satisfaction with existing operators:

7. During the survey when asked all the 120 respondents to rank the different operator brands asper their preference, 43% people rated Airtel as their 1st choice then comes Vodafone with

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36% as 2nd choice followed by Aircel and Reliance in 3rd and 4th position with 9% and 7%respectively.

7. Preferential Ranking among GSM players:

0

20

40

60

Airtel Vodfone Aircel Relaince Docomo Idea Others

52,(43%)43,(36%)

11,(9%) 8,(7%) 6,(5%)0 0

Resopndents' preferenceAirtel

Vodfone

Aircel

Relaince

Docomo

Idea

Others

8. When asked the people that how they first came to know about their respective networkoperators and through which types of medium. Almost 49% people said that they had come toknow about their operators through Electronic media where as 23% respondents said it wasthrough Print media followed by Friends& Family which consist 18% of the pie andawareness through Hoarding & Banners was opted last with only 10% of all the respondents.

8. First Time Awareness (Through which media):

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9. From the survey the data revealed that out of 120 respondents 83 people have been usingmore than one connection and remaining 31% having one connection. Having more than oneconnection reflects that they may have different purpose other than just making simple calls.

9. No. of users having more than one connection:

11. On asking people about the purpose of having more than one connection they showed thefollowing pattern of their preference on different attributes mentioned below. Most of therespondents i.e. 72 people among 120 used more than one connection to reduce their avg.monthly expenditure and also 68 people considered Free on-net call as their first preference.

Apart from that 42 people among them believed For SMS use could be one of the factorsfollowed by GPRS accessibility and Better connectivity.

11. Purpose of having more than one connection:

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11. Continued

14, 33%

12, 29%

7, 17%

3, 7%5, 12%

1, 2% 0, 0%

For SMS use ( 42 Respon.)

Docomo

RelianceAircelAirtelVodafoneIdeaothers

1, 3%

4, 12%

14, 44%

8, 25

%

5, 16%0, 0%

For GPRS (32 Resopn.)

1, 4%0, 0%

3, 12%

8, 32%12, 48%

1, 4%

For Better connectivity

(25 Resopn.)

19,26%

14, 19%

26, 36%

4, 6%

7, 10%

2, 3%

For Reducing expdr.

(72 Resopn.)

7, 10%

24, 35%

9, 13%

10, 15%

14, 21%

4, 6%0, 0%

For Free on-net call (68 Respon.)

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14. On asking that since how long they have been using their existing connections of theirpreferred brand it is found that 59 respondents i.e. 49% of the total sample using it in between 6months to 1 year and out of 120 people 32 have been using their respective connection for morethan 1 year and only 24% of the respondents using it in between 1month to 5 months.Therefore, from the data it can be interpreted that those who have using their existingconnections for more than 1 year they are more loyal to their operator brands than those whohave been using it than the lesser periods.

14. Since how long using present connection:

0 10 20 30 40 50 60

1-5 months

6month-1 year

More than 1 year

29

59

32

Duration1-5 months

6month-1 year

More than 1year

15. On questioning that whether they were facing any problem or difficulties with the service oftheir existing operators approximately 31% respondents i.e. 37 people out of 120 felt that theywere facing mainly back end service in which problem like Unnecessary calls from customercares, Sudden deductions of amount from their balance and confusing offers & pushselling without intimation. In addition 19% respondents (23 people) believed that they were

paying a bit high tariff to their existing operators vis--vis others. Since this category ofpeople mainly belongs to Airtel and Vodafone therefore they had to pay a bit higher but theyalso admitted of getting better service from these operators in comparison to other operators.Apart from that only 12.5% people were having a network related problem since this groupof people may be belong to the operators like Aircel,Reliance,docomo,idea etc. Out of thesample of 120 respondents 45 people (i.e.37%) still enjoying the service of their existingoperators without any such problems.

15. Whether facing any problem with the existing operators:

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16. When asked the respondents that from which kind of place of purchase they liked to buy

their telecom products specifically Sim cards for their mobile connections. Almost 63%respondents considered that they generally bought it from any local shops or vendor andapproximately 37% believed it to be from nearby any organized retail out lets. According to thedata it can be seen that most of the people still dont believe that just for buying a sim cardfor their mobile connection they should look for any branded retail outlets where as about 37%of the respondents believed that buying mobile connections from the organized retails wouldoffer them genuineness and trust.

16. Place of purchase for telecom products:

17. While asking about what they expect buying their telecom products from such organizedretails almost 72% people believed that they get genuineness and then 17% people felt that itcould be After sale service. A few numbers of respondents i.e. approximately 7.5% thought itwould be Spot service & knowledge offered by trained staffs but very few among therespondents linked it to be with their social status.

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17. Why Branded/ Organized Retails:

18. On asking the respondents about the in-store visibility of different operator brands in themodern trade out lets, almost 86 out of 120 of the respondents felt that as far product displayis concerned every operators has its presence in the stores. But in the case of Leaflets andFlex banner & posters as a medium for the visibility of products came down almost one thirdof the product display and this observation was from 23-28 of the respondents out of 120. It isalso very clear from the data that the visibility for products & services of various brandsthrough other medium such as glow signs & cutouts and Hangler/danglers have very little

presence in the stores.

18. Over in-store visibility of different operators:

86

28

23

177Visibility Pattern

Product display

Leaflets

Flex Banner& Posters

Glowsign & Cut out

Hanglers& Danglers

Product display Leaflets

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17%

16% 10%

20%

8%

29%

Airtel

Vodafone

Aircel

Reliance

Docomo

Idea

7%18%

25%

11%0%

39%

Flex banner/posters Glow sign/cutout

17%

9%13%

22%

9%

30%

6%

18%

24%

28%

6%

18%

Retailers view

To find out the reason(s) behind Rcoms losing its market share in the hand of competitors andon the other hand to know the important factors that may help the company to increase itsmarket share in the modern trade outlets as well as to increase its store productivity. For this, Imade a survey with some of the modern trade retailers (10 TMS stores) of South 24 paraganasand South Kolkata to know their opinion & observations on the behavior pattern of consumers

of telecom products in their respective localities. While doing survey following pattern ofconsumers behavior have been noticed.

1. On asking that which network operator is being opted by the consumers in recent days andask them to rank them according to their preference. According to them Vodafone & Airtel arethe preferred brands holding their 1st & 2nd position respectively, surprisingly followed byAircel which stood 3rd where as Reliance(Gsm smart) managed the 4th position. Preference levelof the following operators has been represented rank wise.

1. Most preferred operator brand:

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2. When asked to rank the following factors which are considered and preferred over the otherswhile taking connection(s), the following patterns have come out. 9 Out of 10 stores optedGood connectivity as their most preferred factor followed by Low tariff charge and Brandimage and Promotional offer being the last preference.

2. Factors considered while taking connections:

9

10 0

1

4 4

10

2 2

6

0

34

3

0

2

4

6

8

10

Most prefered 2nd pref. 3rd pref. 4th pref.

Good

connectivityLow tariff

Promotional

offer

Brand image

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3. When asked about the daily average sale of connections store wise, most of the storemanagers (i.e. 9 stores) disclosed their avg.sale of connection below 25 / day. Only one storei.e. TMS Tollygunge having sale between the ranges of 25-50 connections per day.

3. Avg. no. of connections sale /day:

0 0 0 0 0 0

1

0 00

1

2

3

4

5

6

7

8

9

10

Below 25

25-50

51-75

More

than 75

4. While asking about the % contribution of Reliance products in their daily sales I did not getany impressive figure because almost 8 stores out of 10 had the % contribution below 20% andeven 2 of the stores i.e. TMS Bariupur and TMS Santoshpur had their % contribution figurevery low i.e. below 2%.

4. % Contribution of Reliance products in daily sales:

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5. When they were asked regarding their stock taking frequency of Reliance products it wasfound that most of the stores either received their stocks monthly wise or as per demand. Belowgraphical representation shows the frequency of stock taking pattern of the stores.

5. Frequency of Stock taking in the stores:

1

0

4

5

0

1

2

3

4

5

6

Weekly Fortnightly Monthly As per demand

Stock fequency

Weekly

Fortnightly

Monthly

As per demand

6. On asking whether customers turn off due to the shortage of stocks of Reliance products, onthis most of the stores replied Never and a few of the stores said it happened sometimes.

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6. Customers turning off due to shortage in-store stock for Rcoms products:

7. When they were asked about the influential factors that influence their push selling rate mostor motivate to increase their daily sales. On this 7 of the stores felt that Presence of promoterswas the key factor followed by 4 stores which considered Promotional activities and Prompt

problem resolution as the influential factors and then comes Relationship with operatorsemployee and then Store incentives & TMS AOM directives.

7. Influential factors for increasing push selling rate:

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8. During the survey when they were asked that which operator brands connection they wereconfident and comfortable in selling and why, only three names came and those were Vodafone,Airtel and Aircel and the reasons behind their thought were because of the following factorssuch as good connectivity, back end service for prompt problem resolution and regular presenceof promoters. Following Graph shows the data store wise.

8. Feel confident & comfortable on selling of operator brand:

9. Again when they were asked to rate the service/ relationship with operators employeesvisiting their stores the following pattern of their responses were observed. For the first threeranks Aircel, Airtel & Vodafone dominated the positions and Aircel being the most preferredone. Then comes Reliance and Idea in the 4th and 5th places respectively followed by Tata

Docomo.

9. Ratting for Service/ Relationship with different operators:

0

1

2

3

4

5

6

7

Rank 1st Rank 2nd Rank 3rd Rank 4th Rank 5th Rank 6th Rank 7th

3

1 1

2

1

3

2 2

0 0

1

0

3

4

3

1

0

1

00 0

1

6

3

2

00 0

1

0

4

3

0

1

3

2

3

1

2

0

7

Voda

Airtel

Aircel

Reliance

Docomo

Idea

Others

50


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10. On asking the query that whether they get proper and on time schemes/offer details for thecustomers again Vodafone, Airtel and Aircel occupied the first three places on the ranking scaleand here Vodafone remaining in the 1st position followed by Idea, Docomo and Reliance .

10. On getting proper & on time scheme/offers details for customers:

11. When asked about their opinion on the factors that are important for increasing daily salesfor their stores the following pattern of responses was revealed. 60% of the stores consideredPresence of promoters was the most important factors followed by Stock availability (30%)and Various offers & schemes(10%) on the important rating scale. According to the most ofthe store managers & staffs Store incentives was not that much important vis--vis their

customers satisfaction which they felt as the most important thing for the repeat sales. Apartfrom that they also admitted that the higher authorities did not have much interference onselling of connections to the customers.

11. Important factors for increasing daily sales:

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12. When asked in this open ended question that which factor(s) they feel that influence them tode-sale a particular operator brands product, a mixed combination of thought came out,

because 37% (i.e.4 stores) of the total stores surveyed felt the Poor service as a de-sale factor,27%(i.e.3 stores) believed it to be the Bitter relationship with the operators employees andonly 9% felt that it could be Unattractive offers. Among the responses from the 10 stores, 3stores did not comment on the question and avoid it.

12. Factors influence to de-sale a particular brands product:

13. In the last question when asked about any suggestion/observation regarding the product andservice of Reliance they put forward their opinion and also considered that even though thecompany was offering the most attractive plans with the lowest tariffs for the consumers it mustimprove its network first because of that problems like network congestion, call drops andinterrupted internet browsing etc. were occurring.Since they felt it to be the most important reason for decreasing demand for reliance gsmconnection in their respective localities, company should look into the problem and try to sort itout as soon as possible. They also found the Activation process need to be given properattention with sufficient back office support. Apart from that they also suggested that companyshould also give some attention towards advertising and other promotional activities.

52

3, (27%)

4, (37%)

1, (9%)

3, (27%)

Influential factors

Relationship

Poor service

Unatractive offers

No comment


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Findings & Inference

GSM users are much more in numbers than the CDMA users and among CDMA players.Tata indicom is leading the market followed by Reliance CDMA whereasamong GSM players still Airtel and Vodafone is ruling the roost because of their strongnetwork connectivity and loyal customers. Aircel is making hold over Reliancesstronghold areas by improving its network connectivity, by offering attractive offers &schemes and by establishing good relationship with the stores staffs.

Most of the respondents belonging to younger age group are the main consumers of

Reliance GSM connections. The reason behind this could be the lowest on-net callingrates (20p/min with 77 pack) & free on-net call tariffs (for night [11pm-6 am] calling -59 packs).

Store managers/promoters of modern trade outlets admit the facts that Rcom always

offers the best tariff plan but due the poor network it is lagging behind the marketleaders.

Due to the poor network, even the FRC were not being done in some of the stores viz.TMS Baruipur (south 24 pgs) and TMS Santoshpur (South Kolkata).

Promoters are one of the most important factors for push selling of the products of theirrespective company. Absence of the promoters of a particular company in the storemeans drastic decline in the sale of their products.

Good connectivity and low call/Sms tariffs are considered as the most important factorswhile taking any connection.

In the absence of the Reliances promoter, No staff of the store come forward even topitch the customers for sale. On this issue Store managers expresses their concern thatthey can not influence the customers to take Reliances Gsm connections since its

network strength is not so good. Therefore, they do not want to lose customers at thecost of sale.

Sales promotional activities and others instruments for visibility used in the stores toattract customers are very less in comparison to other players like Airtel, Aircel, andDocomo etc.

Higher authorities of TMS do not put much effort to influence store managers for thesale of connections rather they are interested on the sale of mobile handsets.

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Recommendations

Since tariff plans of Rcom is considered the best among the rival operators even bythe end consumers and the stores staffs, but due to the weak signal strength sale ofGsm connections is not going up. Therefore company must give first priority toimprove the network connectivity, sales will follow.

Brand image of the company is also getting hurt due the above said problem, so thefirst and the foremost attention is required to resolve the network problem.

Since store managers do not take much bother to promote the sale of sim cards forany particular network operator in the absence of its promoter, so presence of

promoter in the stores is must to increase the daily sales.

As per store managers/staffs, store incentives do not motivate them much topromote push sale at the cost of loyal and repeat customers. Therefore companyshould look after the Back end service part and maintain its attractive value

proposition part for the customers.

If incentives are offered to store staffs for the motivation to sale more then it shouldreach them directly not via Essar group because in this process either offeredincentives do not reach them or even if it reaches to them the amount become sosmall that lost its objective.

As far as sales promotional schemes and store visibility is concern, company shouldalso intensify it to draw the attention of consumers because competitors like Airtel,Aircel and Tata Docomo have been doing it frequently and aggressively.

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Conclusion

From the above analysis of the data collected during the survey and the informations collectedfrom the different sources I have come to a conclusion that a large population with a rise in

consumers income and spending owing to strong economic growth has helped make India notonly the fastest-growing telecom market but also the cheapest telecom service provider in theworld. So far the total number of telephone subscribers in the country crossed approximately690 million marks and the overall tele-density has also increased to more than 58 % tillnow.The total wireless subscribers (GSM, CDMA & WLL (F)) base is more than 652.42million now.

As the fastest growing telecommunications industry in the world, it is projected that India willhave 1.159 billion mobile subscribers by 2013.Furthermore; projections by several leadingglobal consultancies indicate that the total number of subscribers in India will exceed the totalsubscriber count in the China by 2013.

Therefore, by looking at the above said current position and future growth projections made bydifferent global consultancies for the Indian telecom market it may be said that there is hugeopportunity for every telecom players to grow in the Indian telecom market.

Presently, in the national level the market leader is the Bharti-Airtel with approximately 22%market share followed by Reliance communication with 18%, Vodafone with 17% and Tatateleservices with 12% approximately.

In Kolkata market, from the survey conducted especially in the areas of south Kolkata and south

24 pgs sub-rubs the share of the market seemed to be bit different among the players ascompared to national level. Though Airtel still being the market leader with appx.30% followedby the Vodafone-22%, Aircel-14%, and Reliance-11%.

Suddenly Modern Trade has become a buzz among B2C businesses; no firm that wants to growbig cannot ignore this segment. So we have FMCG majors, Consumers durables, Apparel firmsand even Telecom majors focusing on this kind of organized retails segment as their newmarket place. Even people have started showing their faith in buying their telecom productsfrom modern trade outlets for quality acquisition, quality service and genuiness. CurrentlyModern Trade accounts for an only 5% - 7% of the total retail market in India and is gettingquick recognitions from the people and increasing rapidly.

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So after having a glance of scope for the growth of telecom players in the Indian telecommarket, opportunities in Kolkata telecom market as well as the huge scope in Modern Trades itcan be hoped that if Reliance communication give at least some attention on few of its basic

problems stated in Findings & Inference and will look into some of the suggestions

recommended in Recommendations. It may help the company to regain its consistently losingmarket share and brand image in the hands of competitors.

Annexure-1

QUESTIONNAIRE

Kindly spare your precious time to fill this questionnaire.

1. Which technology of mobile set do you use, 1. CDMA______ 2.GSM _______

2. If CDMA then, 1. Tata_____2. Reliance______ 3. MTS______ 4. VIRGIN______

3. If GSM then which network connection do you avail?1. Airtel_____ 2.Reliance_____3.Vodafone_____ 4.Idea _____5.

Docomo_____6.Aircel_____7.others_____

4. Which type of connection do you use?1. Prepaid______ 2.Postpaid_______

5. What factors did/will you consider while taking a connection, rank accordingly?(Use scale of 1-6 ; 6-most preferred, 5- second preference and so on).

Attributes 1.Connectivity 2.Low calltariff

3.Low SMStariff

4.Free on netcalling

5.Seasonal offers 6.GPRSaccessibility

Rank

6. How satisfied you are with your existing operators?1. Very satisfied______2.Somewhat satisfied______3. Neither satisfied nor

dissatisfied______

4. Somewhat dissatisfied______ 5. Very dissatisfied______7. According to your perception give rank to the following operators in Kolkata and itssurroundings from scale of +3 to -3; (3 - most preferred; 2- second preference and so on;

Neutral-0 ; -3 - Least preferred).Most preferred -----

------- Neutral ------ ------ Least

preferred

Brand/Value +3 +2 +1 0 -1 -2 -3

Airtel

Vodafone

Reliance

Aircel

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Docomo

Idea

Others_________

8. You come to know about the operators through which medium?

Cont

9. Do you use more than one SIM cards?

1. Yes ______ 2.No ______

10. If yes, then mention the network(s), ________________________________________

11. Purpose of having more than one connection(s),

1. Reduce Avg.monthly expenditure_____2.GPRS accessibility_____3.Free on netcalling____

4. Better connectivity_____5.For SMS_____6. Any other______

12. Most of yours calls are1. STD______2.Local______ 3. SMS______ 4.ISD_______

13. What is your monthly expenditure on your mobile connection?

1. Less than 100___ 2. 101-300____3. 301-500____ 4. 500-1000___5. More than1000_____

14. How long are you using your current connection?

1. 1 - 5 months______2. 6 months - 1 year______3. More than 1 year______

15. Are you facing any problem with your present connection?

Company Print media Electronics media Hoarding &Banners

Friends&family

Airtel

Reliance

Vodafone

Tata Docomo

Idea

Aircel

Others_______

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1. Network connectivity____ 2. Availability of recharge facility____ 3. High tariff ____4. Poor service____5.No Problem______

16. You believe in buying your telecom product(s) like Sim cards, Mobile sets, Data cards etc.

through which kind of place of purchase?

1. Branded retail stores_____2. Mom & pop shops_____3.On Internet purchase_____

17 .What do you expect buying your telecom product(s) like Sim cards, Mobile sets, Data cardsetc. from branded retail stores?

1. Genunity___ 2.After sale service____3.Social status____4.Spot service & knowledge bytrained staffs_____

Cont

18. In outlets like, The Mobile stores, spice Hot Spot, Pantaloons and Big Bazar what kind ofvisibility you find.

Company Productdisplay

Leaflets

FlexBanner

Cut outs Posters Hanglers/Danglers

Glow sign

Airtel

Reliance

Vodafone

TataDocomo

Idea

Aircel

19. Other information

Name ________________________________________.Contact No.________________

Age - 20 or less_____ 21-30______31-39_______ above 40_______

Sex - Male______ Female_______ ; Education____________________________

Occupation ______________________; Location______________________________

Income group (annual) 1. Less than 50,000_______ 2. 5o, ooo 1.5 lakhs_______3. 1.5 3 lakhs_______ 4. 3

lakhs & above______

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______With Thanks!_____

For Retailers / Distributors only

Kindly spare your precious time to fill this questionnaire.

1. In recent days customers are opting for which network mostly?(Rank from scale of 1-7; 1-most preferred, 2- second preference and so on).1. Airtel ___ 2.Reliance ___ 3.Vodafone ____ 4.Idea____5. Docomo_____6.Aircel_____7.others_____

2. In your opinion, people buy connection(s) of the above ranked operators due to,(Use scale of 1-4; 1-most preferred, 2-second preference and so on)1. Good connectivity____2.Low tariff charges____3.Because of promotional

offers_____4.Brandimage_____

3. Total Average connections / day from your store,1. below 25______ 2. 25-50______ 3. 51- 75______ 4. more than 75_______

4. What % of Reliance products contribute to your daily sales?1. Below 20%_____ 2. 21% - 30% ______ 3. 31%-39%______ 4. more than 40%_______

5. How frequent you need stocks of Reliance Products?1. Weekly______ 2. Fortnightly_______3. Monthly________4.As per your demand_______

6. Do you think that some times customers turn off due to shortage of stocks?

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1. Sometime______ 2. Always________ 3. Never_______

7. According to you which factor(s) influence the push selling rate most?(Use scale of 1-6 ; 1-most preferred, 2-second preference and so on)1. Store incentives______2.Presence of promoters______ 3. Occasional promotion

activities_______4. TMS AOM directives_____ 5.Relationship with operators_____6.Prompt problem

resolution_____8. Which Operator brand you are confident & comfortable selling & why ?

_________________________________________________________________________________

9. Please rate your service/ relationship provided by the Operator employees visiting your store?(Use scale of 1-7 ; 1-most preferred, 2-second preference and so on)

1. Airtel _____ 2.Reliance _____3.Vodafone _____4.Idea_____ 5. Docomo ____6.Aircel____

7.others_____

10. Do you get proper, on time scheme details & customer offers for selling telecom productsfrom a company in comparison to others? (Use scale of 1-7 ; 1-most preferred, 2-second

preference and so on)1. Airtel ____ 2.Reliance ____3.Vodafone ____ 4.Idea____ 5. Docomo ____6.Aircel_____7.others_____

Cont

11. In your opinion, which factor(s) is/ are important for increasing daily sales,(Use scale of 1- 6 ; 1-most preferred, 2- second preference and so on).

1. Availability of stock_____ 2.Presence of trained promoters_____3. Sales promotionalactivities______

4. Various offers &schemes______5. Store incentives_______6.TMS AOM directives_____

12. According to you which factor(s) influence you to de-sale a particular Operator brand?____________________________________________________________________________________________________________

13. Any observation/suggestion regarding product/service which needs to improve_________________________________________________________________________________________________________________________

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________WITH THANKS!________

Bibliogrphy

REFFERED BOOKS: MARKETING MANAGEMENT 12

TH

EDITION

By: Philip Kotler, Kevin Lane Keller

CONSUMER BEHAVIOUR

By Leon.G.Schiffman & Leslie.L.Kanuk

MARKETING RESEARCH

By G.C.Beri

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RESEARCH METHODOLOGY

By C.R.Kothari

WEBSITES: www.google.comwww.rcom.co.in

www.wikipedia.com www.ibef.org www.cellphones.about.com
http://www.google.com/http://www.wikipedia.com/http://www.ibef.org/http://www.cellphones.about.com/http://www.google.com/http://www.wikipedia.com/http://www.ibef.org/http://www.cellphones.about.com/

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