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RURAL BUSINESS PERSPECTIVE

Survey on performance of Reliance GSM service in U.P. East

PRESENTED BY :

SHAILESH CHAURASIAVSBM (2K8PGD026)

Good Afternoon and Welcome EveryoneGood Afternoon and Welcome Everyone

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RELIANCE COMMUNICATION- A BRIEF INTRODUCTION

Launched on 28 Dec 2002 on the 70th birthday of DhiruBhai Ambani.

Vision was to bring a digital and new way of life for new India.

Network consist of 60,000 km of Optical Fiber cables throughout India.

Objective is to create values to the customers.

Expanding GSM network apart from being the largest CDMA player.

Unique selling proposition (USP): Unlimited Reliance to Reliance talk value.

Adds a Record 5 million new subscriber in January 2009.

Chairman: Anil DhiruBhai Ambani.

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TELECOM OVERVIEW

Market share ofCDMA players

RELIANCE

TATA

TELECOM

BSNL

HFCL

MTNL

Market share ofGSM players

BHARTI

VODAFONE

BSNL

IDEA

RELIANCE

AIRCEL

SPICE

MTNL

BPL

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DISTRIBUTION NETWORK

WAREHOUSE

CIRCLE WAREHOUSE

CLUSTER WAREHOUSE

DISTRIBUTORS

(Reliance mobile store, R world, Direct sales team and Direct sales association)

RETAILER

SUBSCRIBER

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PROJECT INTRODUCTION

Reliance Communication started its GSM service in February 2009 in U.P. East.

Project was on Rural Business Perspective of telecom operators in U.P. East.

Company wanted us to do a survey on Retailers and Distributors of all the 9

Cluster of U.P. East to find out: Demand of customers in rural market.

Telecom operators monthly sales.

Market share of telecom operators in rural market.

Problem with Reliance sales and distribution.

Customer acquisitions by the telecom operators.

Reliances marketing campaign and its effectiveness.

The survey was to be conducted for 2 months i.e. April and May.

The 9 Clusters of U.P East are Azamgarh, Allahabad, Sitapur, Gorakhpur,

Kanpur, Lucknow, Faizabad, Jhansi and Varanasi.

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RESEARCH METHODOLOGY

Research type Descriptive research (Longitudinal study)

Primary data sources Survey conducted on retailers and distributors

Secondary data sources Internet, Company website, Journals,

Magazines and Other interns

Research instruments Questionnaire and Interviews

Sampling unit Retailers and distributors (250 from each Cluster)

Sampling method Random and Judgmental

Contact method Telephonic and personal

Field work Visiting different outlet

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FEW QUESTIONS ASKED.

1) Name the telecom operators whose Sim and Recharge you sell to the

customers.

2) How many Sim you sell each month of each telecom operators?

3) What is the Recharge sales revenue earned from each telecom

operators?

4) Which company gives you best offers and margin?

Airtel

Reliance Bsnl

Vodafone

Idea

others

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5) What is the frequency of direct sales executive (DSE) visit? Once a Week

Twice a week

Trice a week

None of above

6) What availability of stock you keep for sale in your shop? Daily

Weekly

In 15 days

Monthly

7) What nature of problem you face with RCOMM? Service level

Claim level

Product availability

Product awareness

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8) How much time is taken by the distributor to reimburse your claims? 20 days

30 days

45 days

60 days

9) Who are the major competitors of RCOMM? Airtel

Bsnl

Vodafone

Idea

Tata indico

10) How do you know about new scheme?

By sms

By poster

By DSE

Other

1) Name the sales executive who comes to your outlet?

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Cluster 2: Kanpur

GSM sim sales

April May

C Z

! "

#

$

%

! &

'

(

!

#%

! " ) (

! )

%

(

'

& $

(

%

0

)

%

A 12

3 4

5

6

7

8

A

1

8

4 A2

4

5

1 A9

@ 4

A

S9 5

B

CC

D EF

E G EH

I

P Q R Q

S R T

U

V W V

P R T

U

WQ

V

P P T

U

W WR

P P T

V R R

X T

AY ` a b c

d e f

AY f b

A` b c Y

Ag h b

i

Sg c

n the month of AP acquisition share of A is higher than other telecom operator while share of S is

least . n the month of MAY acquisition share of A is higher than other telecom operator while share of

S is least among all the GSM operators. So, for this cluster growth of A is higher than other telecom

operator.

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KEY FINDINGS

Reliance GSM has become threat for its competitors in rural market.

Reliance GSM is eating away the share of BSNL and Airtel.

Airtel is leader in rural market.

Rural India will account for around 5- 8 of the total mobile handset sales

by 2010.

No coordination between sales executive, retailers and distribution of Reliance

Communication.

Insufficient stocks are provided to the distributors of company.

Network and Connectivity of the the newly launched GSM service is not up to

the mark.

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SUGGESTION

Company has to work on improving network and connectivity.

Company should give more stock to distributors.

Company should provide better distribution channel.

Sales person should visit retailer more frequently.

Company should adopt flexible pricing Mechanism to overcome competition.

Company should shift to new technology such as G.

Company should focus on untapped rural market.

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CONLUSION

Rural markets in India constitute a wide and untapped market for many

products and services which are being marketed for the urban masses.

Rural tele-density is very poor and can be improved only through the

introduction of modern and suitable technology along with participation from the

private operators.

Mobile phone ownership in India is growing rapidly, six million new mobile

subscriptions are added each month.

The epicenter of mobile growth has started shifting from the metros to rural area.

Now, Every operator are concentrating on rural market due to very low mobilepenetration.

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LEARNING EXPERIENCES

Types of sign board and their placing.

Hoarding and their placing.

Outdoor advertisement.

Canopy activity.

Rural advertisement.

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