1. STARTAGIC ANALYSIS OF RELIANCE COMMUNICATION WITH
COMPETITOR IN CHANDIGARH AND SURROUNDING OFFICE
OF
RELIANCE COMMUNICATION LTD.
A PROJECT REPORT / SUMMER TRAINING REPORT
Submitted By
SIKANDER SINGH
In partial fulfillment for the award of the degree
of
Bachelors of Business Administration
RIMT – INSTITUTE OF MANAGEMENT AND COMPUTER TECHNOLOGY
PUNJAB TECHNICAL UNIVERSITY: JALANDHAR
(2010-2013)

2. ACKNOWLEDGEMENT
There are a few things that come in the life of a person, may be for a short
span of time, but leaves on ever shining impression in to the mind. My
summer training is one of the events which will be ever green in my life. As I
had been placed in RELIANCE COMMUNICATION LIMITED, at Chandigarh. I
shared the real marketing skills and knowledge from their experienced,
enthusiastic and cordial executives, without whom I would have not been able
to achieve my aim.
First of all I would like to express my thanks to _________________ cluster head of
Reliance communication Limited, Chandigarh for permitting me to do the
training at his concern. I am also very grateful to Miss kiran(distributor lead)
for sharing valuable experience and suggestions regarding training and
preparation of report. I express my special thanks to my mentor miss shivani
gautam who has given me proper guidance in spite of having his busy
schedule. I would like to convey special thanks to my friends for providing me
help and co-operation needed. I also owe sincere gratitude to my family
members whose love, affection, co-operation and moral support have
provided me the strength to carry out this project

3. 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 case
study where a problem has been dealt with, through the process of
management. The essential equipment of 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 BBA curriculum. It enables the
student to share the real experience in industry. My summer training has
placed in Reliance communication limited for the period of four weeks in
Chandigarh, Punjab.
The topic of my project was STRATAGIC ANALYSIS OF RELIANCE
COMMUNICATION with competitor in Punjab and surrounding office. This
project report tends to give a sharp picture of the telecom industry.
I hope, this study can be of some help to the telecom industry of his
Product and service.

5. Reliance communications
1. COMPANY INFORMATION
Reliance - India's largest business house
Reliance – Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group
founded by Shri Dhirubhai H Ambani (1932-2002), ranks among India‘s top three
private sector business houses in terms of net worth. The group has business
interests that range from telecommunications (Reliance Communications Limited)
to financial services (Reliance Capital Ltd) and the generation and distribution of
power (Reliance Energy Ltd).
Reliance – ADA Group‘s flagship company, Reliance Communications, is India's
largest private sector information and Communications Company, with over 40
million subscribers. It has established a pan-India, high-capacity, integrated
(wireless and wire line), convergent (voice, data and video) digital network, to
offer services spanning the entire infocomm value chain.
Other major group companies — Reliance Capital and Reliance Energy — are
widely acknowledged as the market leaders in their respective areas of operation.
What Reliance is all about?

6.  Reliance Energy Ltd.
 Reliance Mutual Fund
 Harmony
 Reliance Communications
 Reliance Life Insurance
 Reliance Anil Dhirubhai Ambani Group
 Reliance General Insurance
2. BUSINESS DESCRIPTION
RELIANCE COMMUNICATION
2.1 OVERVIEW
―A dream come true‖
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 kilometers of a pan-India fibre optic
backbone. This backbone was commissioned on 28 December 2002, the auspicious

7. occasion of Dhirubhai‘s 70th birthday, though sadly after his unexpected demise
on 6 July 2002.
Reliance Communications has a reliable, high-capacity, integrated (both wireless
and wire line) and convergent (voice, data and video) digital network. It is capable
of delivering a range of services spanning the entire infocomm (information and
communication) value chain, including infrastructure and services — for
enterprises as well as individuals, applications, and consulting. Today, Reliance
Communications is revolutionizing the way India communicates and networks,
truly bringing about a new way of life.
2.2.1 VISION:
―We will leverage our strengths to execute complex global-scale projects to
facilitate leading-edge information and communication services affordable to all
individual consumers and businesses in India.‖
We will offer unparalleled value to create customer delight and enhance business
productivity. We will also generate value for our capabilities beyond Indian
borders and enable millions of India's knowledge workers to deliver their services
globally.‖
2.2.2 India’s leading integrated telecom company
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 40 million customers.

8. Our 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. Our constant endeavour is to achieve customer delight
by enhancing the productivity of the enterprises and individuals we serve.
Reliance Mobile (formerly Reliance India Mobile), launched on 28 December
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.

9. CHART: 1
Fig: 1
Reliance uses C.D.M.A. ( Code Division Multiple Access ) technology for its
wireless communication service which is used for Mobile as well as Fixed line
services. C.D.M.A. is known for better voice quality and higher data throughput
across the air interface at low operating cost .

10. 2.1.1 RELIANCE MOBILE
 POSTPAID
FEATURES OF POSTPAID
a)1 INDIA- Now call any phone, anywhere in India for just ONE RUPEE per
min.
b) My Plans- Presenting a range of Postpaid plans designed to fit every lifestyle
.So go ahead get on to Local gossip , chat for hours on STD , get close to your
group or jest get lost in new horizon.
c) Joy Plans- Reliance Mobile postpaid is a joy to use. Our postpaid plans help
you save on costs. Take your pick from a wide choice of plans with economical
tariff rates, according to your use and budget.
d) On-net Talk time Pack- Get 1,000 minutes of FREE talk time. That‘s right.
Now, you can enjoy the first 1,000 minutes of calling to all Reliance mobiles and
fixed wireless phones and terminals (FWP/T) in your circle, absolutely free!

11. e) Get Started Kit- Do not be tied down by a particular handset or phone number.
Now set yourself free with the new ‗Get started kit‘ from Reliance Mobile.
f) Bill Payments- Introducing convenient bill payments. Now pay your bills
directly from your credit card or bank account, and save precious time.
g) INMARSAT- Save up to 70 per cent on calls to satellite phones. Reliance
exclusively offers its subscribers significant savings — up to 70 per cent
depending on the type of terminal and the location — for voice calls made to any
Inmarsat number.
 PREPAID
FEATURES OF PREPAID
a) Prepaid Tariffs- Choose the tariff plan that suits you needs.
b) E-Recharge- Now you can recharge your prepaid with any amount, from
Rs.10 to Rs.10,000. So don't let your budget stop you. Choose a recharge value that
suits you and stay mobile.
c) 1INDIA- Introducing 1 INDIA recharge options of 1 day, 1 week and 1
month validity.
d) Get Started Kit- Gone are the days when you were bound by a particular
handset and a certain phone number. You can now set yourself free with the new
Get Started Kit from Reliance Mobile.
e) Chat & Play - Now you can recharge your prepaid with any amount, from
Rs.10 to Rs.10,000. So don't let your budget stop you. Choose a recharge value that
suits you and stay mobile.

12.  Reliance HELLO
Reliance landline:
FEATURES
A complimentary bouquet of features
a) Next-Gen caller ID: Reliance Landline displays the name and/or number of a
waiting caller while you are in the middle of a conversation. It allows you the
flexibility to choose between two calls or switch from one caller to another.
b) Mobile phone features: Now enjoy all the interactive benefits of a mobile phone.
Store and recall numbers from the phone book, check the history of missed / dialed
/ received calls. What‘s more, you can also use the history menu to make fresh
calls.
c) Delayed hotline: You can program your Reliance Landline to automatically call
a predefined number by lifting the receiver and holding it for seven seconds.
d) Navigation keys: Using the navigation keys on Reliance Landline you can
activate phone features like delayed hotline, line locking, etc — now you need not
remember complicated feature codes and cumbersome procedures. You can also
set your preferred ring tone, ringer volume and LCD contrast.

13. e) Remote phone management: You can lock or unlock the STD/ ISD facility or
hotline settings on your Reliance Landline, remotely from anywhere, from any
tone / DTMF phone.
Plus, you get host of other interesting features like speaker phone, 3-way
conferencing, quick dialing, and many more.
 Fixed Wireless Phone
Benefits:
a) No wires attached
Get on the wireless connectivity bandwagon. And straight away become
immune to cuts in the cable, rains etc. Carry the set along with you when
you move from one room to another or when you shift your home/office.
b) Wireless Internet (Reliance Net connect)
The FWP has an in-built modem for high speed internet connectivity. Surfat
speeds up to 115 kbps. What‘s more, you do not need a separate ISP
connection for operating the set.
c) Mobile Phone's Features
Enjoy all the features of a mobile phone: SMS, In-built caller line
identification, voice mail, 99-number phone book, speaker phone, a choice
of many ringtones, etc.
d) City Mobility

14. You can use your FWP anywhere within your city and still receive and make
calls, at no extra cost.
 FIXED WIRELESS TERMINAL(FWT)
Fixed terminal, limitless benefits
BENEFIT
e) Great Savings
Unbelievably low call rates. Substantial savings on ISD calls.
f) Zero Effective Rentals
Value of free calls almost equivalent to monthly plan charges.
g) Parallel Connection Facility
Two voice ports to connect two telephone instruments to be used as parallel
connections.
h) No Wires Attached
Wireless connectivity-immune to cable cuts, rains etc. Carry it along when you
shift your home/office.
i) Wireless Internet (Reliance Net connect)

15. In-built modem for high speed Internet connectivity at speeds of upto 115 kbps.
No separate ISP connection required.
j) State-of-the-art features
Three-way Call Conferencing, Speed Dialing, Hotline, Call Restrict/Call Lock,
Call Wait/Call Hold, Call Divert, Alarm and Caller Line Identification enabled.
 Reliance broadband.
2.3 COMPETETORS
2.3.1 BSNL

16. The Grand Daddy of all Operators, The State owned B.S.N.L. was the first to
launch P.C.O. service across the country under the guidance of Sam Pitroda who
revolutionized the telecom industry in India. Besides its nationwide presence, it
enjoyed the first mover advantage and had no competition for almost a decade. The
advent of private operators made BSNL pull up its socks but still has an edge over
others in the market.
2.3.2 TATA INDICOM
Pay Telephony Business Unit (PTBU) is a strategic business unit of Tata
Teleservices Limited and has been the first private and branded player in the
payphone industry in the country. It provides its services under the brand name of
Tata. Starting with 5 circles in 2000 it has a nationwide presence in 20 circles and
over 200 towns across the country today. Tata also uses C.D.M.A. wireless
technology as used by Reliance but with a much smaller infrastructure which is
concentrated in only a few states like Maharashtra and Andhra Pradesh.
2.3.3 AIRTEL
Airtel, the Basic phone service of Bharti emerged as the first private competitor in
the basic phones market. Though using Landline phones (copper-wire

17. circuitry) the service turned out to be a welcome break from the inefficient
government owned operators.
3. STRATEGIC ANALYSIS OF THE COMPANY
3.1. ANSOFF’S MATRIX
The Ansoff product-market matrix helps to understand and assess business
development strategy. It has two dimensions, products and markets. Four different
growth strategies can be formulated and any business can choose which strategy to
employ, whether purely or as a mix. The strategies are
 Market Penetration
 Market Development
 Product Development
 Diversification
Reliance FWT PCOs can be categorized as product development. Product
development involves selling new products in existing markets.

18. MARKET PRODUCT
PENETRATION DEVELOPMENT
Penetrating the market for Product A, B, Introduction of new
C, D wherever leadership is
facilities, customer friendly
there.
service, attractive
MARKET DIVERSIFICATION
instruments etc.
DEVELOPMENT The company may try providing
consultancy for Telecom infrastructure
Introducing the Product B, C, D in newer
markets(New territorial region creation in developing countries in Middle
East,
within the country)
South Asian regions.
Nepal, Bhutan, Bangladesh
TABLE: 1
 Fixed Wire line Phones

19. 3.3 PEST ANALYSIS
POLITICAL ECONOMICAL
Permission of FDI (100%) India’s Per Capita holds higher tele-
New Telecom Policy 1999 density potential
Recommendations Of TRAI for Increasing demand for telephony
growth in WLL phones strong association between service
Policy changes for public-private sector growth and telecom
partnerships development
Unified Access Licensing Scheme
SOCIAL TECHNOLOGICAL
High purchasing power of people. growth of telecommunications
new sources of employment infrastructure
welfare enhancing consequences shortage of telephone lines and
improved access in the fields of high telephone charges
education, healthcare, Last Mile Connectivity
governance Technological innovation in the
form of CDMA and 3G.
TABLE: 2
The PEST analysis is a useful tool for understanding market growth or decline, and
as such the position, potential and direction for a business. A PEST analysis is a
business measurement tool. PEST is an acronym for Political, Economic, Social
and Technological factors, which are used to assess the market for a business or
organizational unit.

20. 3.4 SWOT Analysis
INTERNAL ASSESSMENT OF ORGANISATION
STRENGTHS WEAKNESS
Highest commission structure (RIL- Hesitation among PCO owners in
30%, MTNL 15-18%) among adopting relatively new technology in
national long distance operators. landline segment.
State of art wireless technology. Resentment among business class due
Hassle free installation. to billing problems with RIM.
No security deposit Connectivity problems in some remote,
Brand name ―Reliance‖. rural areas of Bihar, Uttar Pradesh.
Sales backed by extensive customer
Callousness on the part of LBA will
care and after-sales services.
effect customer satisfaction
Prepaid PCO system, therefore,
hassle free billing mechanism
SWOT ANALYSIS
OPPURTUNITY THREATS
Curre nt te le-density o f Ind ia is only Pitted against well-entrenched
9.15%. 90.85% o f peop le still player like MTNL / BSNL which
depend o n PCO s fo r their
co mmunicatio n needs.
control approximately 85% of PCO
The co mpo und a nnua l gro wth rate market in metros, 90% of PCO
of PCOs is 25 %. market in urban, semi-urban areas
Curre ntly there are 16.55 lacs PCOs and nearly 100% in rural areas.
in Ind ia, wa iting to be churned. Entrance of new players like Bharti
Custo mer service standards o f its and TATA Teleservices
ma in co mp etitor M TNL / BSN L is
not very sa tisfacto ry Perceived saturation in PCO
Prob le ms o f b illing in po st-paid market.
systems TRAI's impending regulations
EXTERNAL ASSESSMENT OF ORGANISATION

21. CHART- 2

22. 4. ANALYSIS OF COMPANY STRATEGY
4.1 PORTERS’s FIVE FORCE MODEL
SUPPLIER POWER
High Competition
Concentration of Suppliers
BARRIERS TO ENTRY THREAT OF SUBSTITUTES
RIVALRY
High Initial Costs Moderate High Switching High (Price Sensitive Market)
Costsrowth
Government Regulations Low Exit Barriers High Switching Costs
Specialty Assets Required High Switching Costs
Low Concentration Ratio
BUYER POWER
High Bargaining Power
High Switching Costs
CHART: 3

23. 5 ANALYSIS OF COMPETITIVE POSITION
5.1 BCG MATRIX
BCG matrix is based on the product life cycle theory that is used to explain how
different products should be prioritized in a company‘s portfolio. It has two
dimensions: market share and market growth. The two dimensions are used to
create a quadrant matrix in which all the products in a company‘s product portfolio
are categorized into the four categories. This analysis helps avoid a strategy
mistake made frequently that is of measuring the performance of different products
on the basis of a single criteria e.g. generic growth rate. This framework assumes
that an increase in relative market share will result in an increase in generation of
cash.
5.1.1 STARS
These are high growth products which have a large market share in fast growing
industries. In case of reliance Communications its FWT services can be called stars
since they have a share of 21% of the market and are growing at the rate of 9%.
This service contributes 18% of total revenues and justifiably accounts for a large

24. percentage of total investment. Continuous investments should be undertaken by
the company to expand market share of WLL services because this could lead to
them becoming cash cows for the company in the future.
5.1.2 CASH COWS
These are the products which are leaders in markets which are slow growing but
the company has a large share of the market. As a result these products generate
large amounts of cash and profits but because of the slow rate of growth of the
market investments in these products should be kept low. These products are the
foundation for a company and provide the cash required to turn question marks
into market leaders. In context of Reliance its cellular services are growing at 4%
p.a., are the cash cow which form the foundation of the company.
5.1.3 DOGS
These are the products in which the company has a small share in a slow growing
market. As a result their contribution to overall revenues is limited and they can
turn into cash traps because of money tied up in a business which has limited
potential. Therefore the company should be beware of expensive turnaround plans
and should try to divest in these products. In case of reliance its fixed line services
can be called the dog for the company.

25. 5.1.4 QUESTION MARKS
These are the products that are growing rapidly and thus consume large amounts of
cash, but because they have a low market share they don‘t generate much cash. But
if proactive measures are not undertaken to increase the market share they
degenerate into dogs after years of cash consumption. Therefore the company
should aim at either investing heavily to increase market share or sell off to
generate whatever cash it can. In case of Reliance there are a number of products
which can be put into this category for example ISPs and LPCs and WLL PCOs.
A major limitation of this model is that it assumes market growth rate to be the
only factor of industry attractiveness and relative market share to be the only
indicator of competitive advantage. Therefore it ignores the strategy where a
business might use a ―dog‖ to gain a competitive advantage in other business units.

26. STAR QUESTION MARK
 Fixed Wireless phone
 Fixed Wireless Terminal Phone  PCOs
 ISP and Broadband Services
 GSM cellular service.
CASH COWS DOGS
 Cellular Services  Fixed Wire line Phones
 Reliance India Card
 Recharge Coupons
TABLE: 3
6. STRATEGIES ADOPTED
6.1 SEGMENTATION
6.1.1 Geographic
Geographic segmentation divides markets into different geographical units. There
are four main cellular segments

27. Metro – the metropolitan areas of Mumbai, Delhi, Calcutta, and Chennai are under
this category of telecommunications circles and continue to lead.
Category A circles – mostly analogous to the states of India, comprising Andhra
Pradesh, Maharashtra, (category a leaders) Gujarat, Karnataka and Tamil Nadu.
Category B circles – mostly analogous to the states of India, comprising Uttar
Pradesh (east and west), Punjab (category B leaders), Rajasthan, Haryana, Kerala,
Madhya, Pradesh, and West Bengal.
Category C circles – mostly analogous to the states of India, comprising Bihar,
Orissa, North-East Assam, Jammu and Kashmir, Himachal Pradesh, Andaman and
Nicobar Islands
In context of Reliance PCOs, the company is specifically targeting non metros,
highways, commercial areas in metros, small townships and low income clusters in
urban areas for e.g. urban villages and industrial areas.
6.1.2 Demographic
In demographic segmentation, the buyers are divided into different groups on the
basis of variables such as their age, family size, family life-cycle, gender, income,
occupation, education, religion, race, generation, nationality and social class.
Consumer wants, preferences and usage rates are often associated with
demographic variables. The relevant categories that can be identified for Reliance
PCOs are senior citizens, unemployed youth, small shop owners, kirana stores and
existing PCOs owners

28. 6.2 TARGETING
Reliance Communications current targeting approach is a mass-marketing method
that tries to address the needs of the entire market and widen its subscriber base. In
mass marketing, the seller engages in mass production, mass distribution, and mass
promotion of one product to all its buyers. Mass marketing creates the largest
potential market, which leads to the lowest costs, which in turn can lead to lower
prices and higher margins.
Reliance successfully implemented this strategy and while it did help Reliance in
expanding its customer base, its strength and spread remained limited to the
Category C regions (See table 2). The apparent popularity of Reliance
Communications in this category is due to its positioning in the market as a
“Common Man’s Phone”. Dhirubhai Ambani had dreamed of “Roti, Kapda,
Makaan aur Mobile” which clearly reflects the strategy, adopted by Reliance. The
low-tariff plans, low fared prepaid and postpaid offers have brought Reliance close
to the price conscious people.
They focus on few key aspects while promoting -
Next Generation technology
Widely available (Able to connect 90% of India‘s population)
Low tariff rates to attract a wide customer base

29. Range of handsets offered with Reliance connections (Black and white
handsets, colour handsets with camera, video camera phone, camera watch
phone, PDA colour phone)
Special offers for making calls to the Gulf, USA and Canada
6.3 POSITIONING
Positioning can be defined as the act of designing the company‘s offering and
image to occupy a distinctive place in the mind of the target market. The
positioning of the target has to be such that a majority of the target market segment
identifies with it.
7. 4 P’S OF MARKETING
7.1 THE FIRST “P” PRODUCT

30. The action plan of launching a new product includes a decision on the four Ps of
product, place, price, and promotion as well as the three Ps of services namely
people, processes and physical evidence. Also it is not a pure product or a pure
service that is being marketed. In terms of product Reliance is offering tangible
good with accompanying services, with the handsets being tangible goods and their
mainstay being the services. Now we can make this tangible on the basis of place,
people, price, and communications material.
Historically the thinking was that a good product will sell for itself. However there
are no bad products anymore in today‘s highly competitive markets. Therefore it‘s
inevitable now for a company to ignore on the various aspects of a product. We
have tried to analyze the product of Reliance Communications i.e. ‗WLL‘ on the
basis of following parameters:
Quality
When we talk about the quality of any telecom service we basically focus on
following aspects:
Voice quality-
The Voice quality in CDMA based Networks is much superior as compared to
GSM Networks. Therefore Reliance WLL has a technological edge over its GSM
counterparts.

31. Data Transfer Rate-
The Data rates throughput available to a WLL user using a 3G handset, being
provided by Reliance is much higher than the data rates provided by the GSM
Operators using GPRS, a 2.5 G technology inferior to Reliance 3rd Gen
technology. So for a layman, it may mean that watching a Video Clipping or a
multimedia application on a CDMA Handset will be much more fun as compared
to the present day GPRS Services
Strong Optical Backbone-
Reliance, being an operator with Pan India presence, and possessing a strong
optical Backbone spread across the country, is expected to deploy and provide next
generation telecom services quicker and cheaper than any other private operator in
the country.
APPEARANCE
Appearance and design, however, still remains the user's first turn-on trigger.
Reliance WLL phone come as a refuge to the market as they are targeting the
various segments of the society. The low end model starts for as low as Rs. 2000
and the range goes up to Rs. 30000. The various phone models available are
quality phones being manufactured by the top firms like Nokia, Motorola,
Samsung and LG etc.
BRAND

32. Reliance Communications is the outcome of the late visionary Dhirubhai Ambani's
(1932-2002) dream to herald a digital revolution in India by bringing affordable
means of information and communication to the doorsteps of India's vast
population. Reliance Communications Ltd., an Anil Dhirubhai Ambani Enterprises
group company, is India's largest private information and communications services
provider, with a subscriber base of over 11 million. Reliance Communications has
established a pan-India, high-capacity, integrated (wireless and wire line),
convergent (voice, data and video) digital network, to offer services spanning the
entire Communications value chain.
SERVICE
Reliance Communications network is a pan India, high capacity, integrated
(wireless and wire line) and convergent (voice, data and video) digital network,
designed to offer services that span the entire Communications value chain -
infrastructure, services for enterprises and individuals, applications and consulting.
The network is designed to deliver services that will foster a new way of life for a
New India.
SUPPORT
The major focus for any company in the service sector is how satisfied their
customer is with the service being provided by the company. The service doesn‘t
end with by selling the phone to the customer but also solving the concern,
difficulties, queries and complaints of the customer. Reliance Communications has
some innovative features like R-World apart from the usual customer support
services being provided by other telecom players. Reliance has a 24 by 7, 365 days

33. a year, customer service in ten regional languages to ensure consumers have a
smooth experience.
7.2 THE SECOND “P” PRICE
How much are the intended customers willing to pay? Here we decide on a pricing strategy - do
not let it just happen! Although competing on price is as old as mankind, the consumer is often
still sensitive for price discounts and special offers. Price has also an irrational side: something
that is expensive must be good. Permanently competing on price is for many companies not a
very sensible approach. Reliance India Mobile has revolutionized the Indian mobile
telephony market through unique pricing models. In fact, thanks to Reliance‘s
innovative pricing, tariffs in India have fallen across the board by over 70 per cent,
making it the world's lowest-cost mobile market today. India was the world's
highest cost market in the nineties.
As of now, RIM has concentrated in terms of its pricing in the economy to medium
value segment. The products with high and good value have not been very
successful. But that was partly because at that time, reliance was more than just a
service provider, dealing in handsets and post paid plans and selling customized
solution. Now, with a maturing market, as people are moving to upgrades reliance
seriously needs to look into the high value segment. By high value we mean high
quality and high price segment. A high service in terms of not just the value adding
features but also the quality of your basic services. Airtel has projected itself as a
service provider with superior network coverage. Reliance has had issues in the
past with its billing and also its traffic congestion which has left many customers
complaining. And as they look to expand into new segments that are more life style
focused and brand conscious, negative word of mouth publicity is the last thing

34. they would want. Side by side, they also need to look for the latest offerings in the
market to lure and retain customers. The first movers advantage they had accrued
is now eroded as the competitors have come out with similar features and services
like internet surfing, cricket scores and multimedia content in both GSM as well as
CDMA segments. So reliance needs to heavily invest in developing new and
unique differentiating features and products to project itself as the better option to
the upwardly mobile youth. Like Airtel‘s Blackberry initiative. Even though Airtel
is fighting reliance bitterly in terms of the least priced services to the consumers,
having a high end limited sales volume product in its range gives it a superior
image because of its aspiration power in the minds of the affluent youth.
In terms of the market pricing is concerned, RIM is faced with a unique situation.
Although it is aiming for market penetration, the usual low pricing strategy will not
be very successful as all the rivals are offering services at a very competitive rate
and drastic undercutting will only lead to erosion of profit margins. Also the
market is growing rapidly and further lowering of prices will not fuel the growth
further.
SCHEMES:
TARIFF PLAN FW FW FW FW FW FW
150 290 02
03 04 600
RENTAL(RS./MONTH) 150 290 500 1000 1500 600
CLIP CHARGES 50 - - - - -

35. FREE CALL UNITS 50 150 450 1000 1750 2000
FREE 60 180 495 1000 1575 600
TALKTIME(RS/MONT
H)
RATE PER CALL UNIT 1.20 1.20 1.10 1.00 0.90 0.30:TO RELIANCE
RS/CALL UNIT 1.10:OTHERS
SECURITY FEE 2800 280 280 2800 2800 2800
0 0
TABLE: 4
Amount of sales (per month): FWP/I Phone
AREA FWP(SALE IN UNIT) I FONE(SALE IN UNIT)
MAYUR VIHAR 25 20
ADHCHINI 20 20
GREEN PARK 30 25
SAKET 25 25
PREET VIHAR 25 20
TABLE: 5

36. 7.3 THE THIRD “P” PLACE
Available at the right place, at the right time, in the right quantities? Some of the
revolutions in business have come about by changing Place. We have focused on
different attributes related to reliance place strategy in successfully removing the
bottlenecks associated with the timely availability of its products through a
nationwide network of Web Worlds.
7.3.1 LOCATIONS
Reliance Web World is a countrywide network of retail outlets offering a host of
state-of-the art communication and information services along with food and
beverages in a modern ambience. It probably is also the world's largest network of
public access broadband centre. A total of 240 Web Worlds are operational in 111
cities and towns across India. The number of Web Worlds in this network will
further increase to cover nearly 700 towns and cities. All Web World outlets have
three components: Customer Convenience Centre, Broadband Centre and Gourmet
Café.
7.3.2 CHANNEL MEMBERS-
The following are the desirable features for sales people:
Competence First and foremost is the competence of the sales force.
Reliance has had billing problems in the past and competent

37. handling of all customer complaints will be of utmost
importance.
Courtesy RIM has exclusive retail outlets, which can be monitored, but
newer expansion plans will mean selling through other retailers
for prepaid cards.
Credibility This is a major issue as the previous policies were not very
transparent and this has generated a negative perception for
Reliance.
Responsibility Problems of area distribution between different franchises
Communication Continuous communication is needed for promoting newer
policies and promotion schemes. Higher flexibility given to
franchisees in offering customized plans.
7.3.3 DISTRIBUTION CHANNEL
Reliance‘s FWT PCOs are distributed through a network local business associates
(LBA). Every district is divided into a number of zones each of which is headed by
a zone PCOs lead. In every zone there is a point of sales, the LBA who acts as the
interface between the company and the local PCOs operator. The LBA gets in
contact with existing and potential PCO owners and after they decide to take a
PCO connection from Reliance, he helps to arrange for the entire package which

38. consists of the phone instrument, FWT, billing machine, telephone booth and patch
panel antenna.
7.3.5 MARKET COVERAGE
Reliance is the second largest player in FWT market which is growing at fast rate
of 5.5%. The Lead player in the market is Tata Teleservices. But Reliance has
shown major improvement in the market coverage and has grown its share from
34.15% in April‘05 to 37.12% in Oct.‘05.
7.4 THE FOURTH “P” PROMOTION
(How) are the chosen target groups informed or educated about the organization
and its products? This includes all the weapons in the marketing armory -
advertising, selling, sales promotions, Public Relations, etc. While the other three
P's have lost much of there meaning in today's markets, Promotion has become the
most important P to focus on.
Since it‘s a highly competitive sector therefore Reliance had to work really hard on
its promotional schemes in order to grab the market share.
But the most important tool that Reliance should really be considering is the sales
promotion as a strategy to reach out to a mass audience and grab attention. And

39. also to arouse the interest of the target segment in the product this strategy will be
very useful. Just like what Nokia did sometime back for the N-gage and what the
two wheeler companies have been successfully doing for a long time, RIM should
come up with road shows as soon as they come out with their newer models to
generate curiosity in the minds of the people. Online games as suggested should be
an important feature of the mobiles and online one to one competitions can be
organized for promotional schemes. This is nothing new for Reliance
Communications as they had done this for the promotion of their Web world
broadband services also. Partnering with KBC like game shows will also be a big
draw as Airtel have successfully demonstrated. Another charm for the youth is the
concerts, technology fares etc and organizing these as well as partnering as
sponsors with such events in colleges and expos can also are used to draw
attention.

40. 8. CURRENT MARKET SCENARIO FOR WLL PHONES IN
INDIA
8.1 CDMA Mobile Segment
CDMA subscriber‘s base grew 5.7% mom to 14.49mn with Tata contributing a
chunk of additions in subscriber base. Tata witnessed a whopping 20.6% mom
growth in subscriber base, touching the 2.5mn mark. Reliance witnessed a sluggish
3.2% growth in the month of October. However, it maintained its market
leadership with a total subscriber base of 11.78mn.
CDMA subscriber data
Group
Compan
Subscribers as of Additions Subscribers as of
y
September'05 In Oct October'05 (%)Growth
Reliance
11,414,478 366,888 11,781,366 3.2
Tata
2,055,865 423,265 2,479,130 20.6
HFCL
60,292 542 60,834 0.9
Shyam
28,182 43 28,225 0.2
MTNL
154,301 (11,296) 143,005 (7.3)
Total
13,713,118 779,442 14,492,560 5.7
Source: AUTSP Table: 6

41. Market share of CDMA operators CDMA share of net additions
Graph: 1 Graph: 2
8.2 Fixed Wireless Terminals (FWT)
FWT continues to be one of the fastest growing segments with 5.5% mom growth.
Tata maintained it leadership position in FWT segment with 61% market share
amongst private players. In net additions, too, Tata led with 55% share. However,
Dot‘s latest ruling removing FWT service from the ambit of basic service and
instead terming it a ‗limited mobile service‘ liable to ADC levy may be a serious
blow to the growth of this segment.
Group
Compan
Subscribers as of Additions Subscribers as of
y
September'05 In Oct October'05 (%)Growth
Tata
3,219,643 158,437 3,378,080 4.9

42. Reliance
1,921,692 128,972 2,050,664 6.7
Bharti
23,999 (265) 23,734 (1.1)
HFCL
33,043 1,753 34,796 5.3
Shyam
26,915 232 27,147 0.9
Total
5,225,292 289,129 5,514,421 5.5
Fig: 12
We compared the above figures with the figures of March‘05 and realized that
reliance market share has gone up from 34.15% to 37.2% in six months which
shows that there is both potential in the market as well as in the company itself to
increase its market share further.

43. Fig 13
Initiatives:
Introduction of Low cost telephony by launching Free Incoming service which
took the telecom market by storm
Achievements:
Brought the mobile phone to the common man by introducing Monsoon Hungama
and Happy Diwali offers in 2003
Milestones:

44. Became the second largest Mobile service in the country with more than 1 crore
subscribers within 2 years of launch.
Channel
Initiatives:
Introduced the Dhirubhai Ambani Entrepreneur scheme to involve the middle class
to partner Reliance and profit from it.
Achievements:
Built enduring relationships with people cashing in on the name of Reliance.
Milestones:
Elevated dealers to the position of business associates giving them more
importance and responsibilities which formed the backbone of the channel.
Costs
Initiatives:
Low cost telephony ringing the mobile in the ears of the common man.
Achievements:
Instrumental in bringing down call rates across the entire mobile phone sector.
Milestones:

45. Still riding the crest of the tide with large volumes of subscribers and subsequent
high returns
Service
Initiative:
Spread a network of Reliance Web worlds and Web world Express providing One-
Stop shops for all customer needs.
Achievements:
A dedicated sales and service staff took care of the customers and led to efficient
management despite swelling subscriber figures
Milestones:
Web world home to a variety of Virtual courses, Gaming Zones and Video
conferencing facilities .First one of its kind in the country
Systems
Initiative:
Introduction of C.D.M.A.1X. Technology into the Indian market on a large scale
which resulted in high quality wireless service at low costs. Add to that a 60000
km fiber optic backbone network.
Achievements:

46. Combining of Data and Voice service done on an extensive scale with C.D.M.A.
1X technology. Instrumental in bringing Mobile to the remotest corners of the
country (Regulations not withstanding)
Milestones:
Reliance possesses 74 Mobile Switching Centres (MSC s) and about 7200 Base
Transceiver Subsystems (BTS sites), providing a 98.6% Quality of Service (QOS)
rating for areas under coverage.
Brand
Initiative:
India‘s most reliable brand added another dimension by entering the telecom
market. Its name preceded Reliance but the brand name Communications came
into prominence.
Achievements:
Kar Lo Duniya Mutthi Mein, having the world in your palms, caught the
imagination of people and launched Reliance India Mobile.
Milestones:
Ek Soch thi, Ek Sapna Thaa, Dhirubhai‘s dream of a call at the cost of a postcard
was realized and entire India called out Mujhme Hai Wo Baat.
9. CUSTOMER SATISFACTION

47. We were more concerned about the factors that influence the consumer before
choosing any new connection or switching from the present connection. We rated
the different attributes on the scale of (1-5). We found the following results.
Attribute importance (1-5)
4.50
4.40
4.30
4.20
4.10
4.00
3.90
3.80
3.70
3.60
3.50
3.40
Network Easy voice quality customer Billing
Coverage availability care system
The Network Coverage was the factor that concerned the people to the greatest
extent. However the factors like the Billing System and the Voice Quality were
also important. These factors were the desired attributes by any user.

48. Calculated Ratings on 5 Point Scale
4.50
4.00
3.50 Reliance
3.00 Airtel
BPL
2.50
Idea
2.00
Hutch
1.50 BSNL
1.00 Tata indicom
0.50
0.00
Network Easy
voice customer Billing
Coverag availabili
quality care system
e ty
Reliance 3.75 3.56 2.50 3.88 2.81
Airtel 3.64 3.46 2.46 3.93 3.08
BPL 4.00 3.00 3.00 4.00 3.00
Idea 3.20 3.60 3.80 3.80 4.00
Hutch 3.80 3.80 3.40 3.00 3.75
BSNL 4.16 3.89 3.05 2.89 3.53
Tata indicom 4.00 3.00 4.00 3.00 2.00
Graph: 6
This showed that Voice Quality and Billing System were the two areas where
Reliance had performed pretty badly against its competitors. We came to know that
the Billing System by Reliance is said to have many discrepancies. Here Reliance
really needs to work upon.

49. The Road Ahead
P.B.O. The new age P.C.O. From Reliance
Reliance Communications Ltd is looking at the successful public call office (PCO)
model for delivery of e-governance initiatives to the rural areas.
In the nextgen PCO, Reliance will use broad band to deliver the services, and will
be aptly named Public Broadband Office (PBO). Prakash Bajpai, president,
Reliance Communications, said the G2C (government to consumer) initiative on e-
governance will popularize the use of broad band. However, he neither had the
time-frame for Reliance‘s projected PBO nor the investments needed.
―The PBO will need applications like e-mail, transactions, filing of returns, sales
tax or excise duty filing or any other work requiring government interaction.
Additionally, we will have to persuade government for spectrum availability and
dedicated carriers for data will be needed. Investments will be needed for the
creation of base stations, too,‖ Bajpai said. Meanwhile, pushing its broad band
service offering, Reliance Communications will add another eight products to its
existing 12. The new products, to be launched in another two months time, will
include collaborative services and consumer Internet.
The bouquet of collaborative products will include audio video and web
conferencing services while consumer offerings would include health, games
recreation

50. In an effort to improve its customer care services, the telecom services provider is
set to launch Web World Express (WWE). These franchised outlets will initially
attend to customer care issues and then expand to include broad band services.
Reliance Netway:Broadband TV at your home
As far as the broadcast sector is concerned however, it is Reliance's broadband
plans, Ethernet broadband 'Netway' for the home user in particular, that is the focus
of attention.
Netway is still nearly a year away from commercial launch, clarifies Khanna,
though a "test run" of the service that "has no parallel anywhere in the world
except in Italy on a very small scale" is already on at the Reliance centre in
Jamnagar, Gujarat. 3,000 households of
Reliance employees at the Jamnagar oil refinery have been wired up for this
purpose, says Khanna.

51. In another two months, the testing process will move up a gear when 5,000 homes
of Reliance Communications employees (there are 15,000 of them working in
DAKC alone) get wired up.
Suffice to say that what Reliance is committing to give its home user customers is
100 mbps bandwidth routed through a prototype set top box that will triple up as a
TV remote, a phone, a keyboard and even a karaoke microphone.
With this kind of bandwidth capacity, the question is of course what is the sort of
content that will be made available for home users. According to the literature
provided, aside from the obvious high speed Internet which also offers Voice over
IP telephony, there will also be movies on demand, music on demand and digital
TV. A vast library of movies with multiple language subtitles as well as an
extensive music listing is being compiled at the moment. Netway is also promising
interactive TV with over 160 channels
Reliance Data Center
Reliance Data Centers are truly world class Level 3 IDC facilities with a total area
of 205000 sq. ft. located at the sprawling Reliance Communications Headquarter
campus, Navi Mumbai and at Bangalore. Reliance's data center project further
includes setting up of world-class data centers in 6 major cities in India covering
approximately 5,00,000 sq.ft. area in the next 2 years
The Data Centers has been internationally benchmarked with respect to physical
and network security, infrastructure, facilities, network connectivity and its
operations, which achieves and surpasses the Level 3 world standards. The Data

52. Centers are connected to Reliance's country wide optic fiber based IP network with
terabytes of capacity having points of presence at more than 700 cities. The data
centre is further connected to 52 countries including US, UK, Mid-east and Asia-
Pac through Flag Telecom backbone (Reliance Communications‘s group
company), other undersea cable systems and are having private peering
relationship with the largest Tier 1 ISPs and public peering at more than 15
Internet Exchange points across the globe. There also exists peering relationship
with domestic ISPs on STM-1 bandwidth levels.
Recommendations
 Reliance has for long been perceived as the common man‘s phone. It
needs to come out of the mid-segment trap by catering to the high end
subscribers who bring in larger arpu
 It is highly important to retain customers as sooner or later the market
will saturate and the low call tariffs will prompt subscribers to switch
operators

53.  With uniform number across operators being a possibility in the near
future, existing subscribers will be inclined to move to an operator
offering better service, it is highly recommended that Reliance pulls up
its socks and improves its service quality which is lacking in certain areas
like network coverage and billing
 Reliance has the most extensive private network in the country and needs
to consolidate its position by improving its standards and living up to its
famous brand name
BIBLIOGRAPHY
BOOKS
Marketing Management - Phillip Kotler

54. Marketing Research - Tull & Hawkins
MAGAZINE
Business Today
Advertising & Management
NEWSPAPERS
Economic Times
Hindustan Times

55. WEBSITE
www.COAI .in
www.AUSPI .in
The relevant information from the internal source of the organization
Questionnaire

56. 1. Whether following things are available?
 Monsoon offer 48%
 Kit 90%
 V-top 40%
 E-Recharge 90%
The survey revealed that 48% retailers have monsoon Offer, 90% have
kit, 40% have V-top and 90% have E-recharge.
2. What is the frequency of DSE visit?
 Once a Week 20%
 Twice a Week 50%
 Thrice a Week 30%

57.  None of above 0 %
The survey revealed that 20% retailers have said that DSE visits once a
Week, 50% retailers have said that DSE visits twice a Week, 30%
retailers have said that DSE visits thrice a Week.
3. What availability of stock you keep for sale in
Your shop?
 Daily 9%
 weekly 72%
 In 15 days 18%
 Monthly 1%
The survey revealed that 9% retailers keep daily stock, 72% retailers keep
Weekly stock , 18% retailers keep stock of 15 days and 1% retailers keep
monthly stock.

58. 4. What nature of problem you face with RCOMM?
 Service level 31%
 Claim level 95%
 Product availability 18%
 Product awareness 25%
The survey revealed that 31%, 95%, 18%, 25% retailers have problem with
service level claim level, product availability and product awareness
respectively.
5. How much time is taken by the distributor to reimburse your claims?
 20 days 11%
 30 days 25%
 45 days 25%
 60 days 39%

59. The survey revealed that 11%, 25%, 25%, 39% of the retailers are
reimbursed by distributor at claim level respectively.
6. Who are the major competitors of RCOMM?
 Airtel 55%
 Aircel 15%
 BSNL 15%
 Tata Indicom 30%
 Smart 8%
The survey revealed that Airtel and Tata indicom are the major
competitors of RCOMM.

60. 60%
50%
40%
30%
Series1
20%
10%
0%
AirTel BSNL Smart

61. 7. If you have any problem then whom you will prefer to talk?
 Distributor 10%
 TSM 23%
 DSE 67%
The Survey revealed that 10%, 23% and 67% retailers prefer to talk to
Distributor, TSM and DSE.
8. How do you know about new scheme?
Companies SMS Poster DSE
Reliance   

62. Airtel   
AirCel   
smart   
Tata Indicom   
9. How much time do you take to activate a sim?
(i) 10-15 min. 44%
(ii) 15-30 min. 38%
(iii) 30-60 min. 6%
(iv) Above 60 min. 12%
The survey revealed that 44% retailers take 10-15 min., 38% take 15-30
min., 6% take 30-60 min. and 12% take more than 60 min. in activation of a
SIM.
10. From which company distributors you are more satisfied?
(i) Airtel 34%
(ii) Reliance 28%
(iii) BSNL 17%

63. (iv) AirCel 16%
(v) TATA 4%
(vi) None 1%