&the analysis of impact of media campaigns and sponsorship on sales and visibility of brands - copy

7/27/2019 &the Analysis of Impact of Media Campaigns and Sponsorship on Sales and Visibility of Brands - Copy

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THE ANALYSIS OF IMPACT OF MEDIA

CAMPAIGNS AND SPONSORSHIP ON SALES

AND VISIBILITY OF BRANDS

( Submitted in partial fulfillment of the requirements for

PGDM )

By

Name of Student Udit Kumar Singh

Roll No. DM1214237

Batch of 2012-14

ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY, PLOT NO 49,

Knowledge Park 3, GREATER NOIDA-201306 (UP)

July 2013


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SUMMER TRAINING COMPLETION CERTIFICATE

This is to certify that Mr. Udit Kumar Singh student of PGDM of Accurate Institute of

Management & Technology , Greater Noida, has undertaken the project titled The Analysis

Of Impact Of Media Campaigns And Sponsorship On Sales And Visibility Of Brands at

Matrix Cellular (International) Services Pvt. Ltd. from 04-05-2013 to 05-07-2013 and has

completed the project successfully.

I wish him a success in all his future career endeavors.

Industry Guide

Name:

Designation:

Organizations Seal

___________________

Signature with Date


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CERTIFICATE OF ORIGINALITY

I_____________________________________ Roll No

________________________of 2013,is a fulltime bonafide student of first year of

PGDM Program of Accurate Institute of Management & Technology, Greater Noida.

I hereby certify that this project work carried out by me at

_____________________________________________________ the report

submitted in partial fulfillment of the requirements of the program is an original work

of mine under the guidance of the industry mentor __________________ and the

faculty mentor ______________________________________________and is

not based or reproduced from any existing work of any other person or on any earlier

work undertaken at any other time or for any other purpose, and has not been

submitted anywhere else at any time

(Student's Signature)

Date: July, 2013

(Faculty Mentor's Signature)

Date: July 2013


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ACKNOWLEDGEMENT

Perseveration, inspiration and motivation have always played a key role in the

success of any venture. In the present world of competition and success, training

is like a bridge between theoretical and practical working; willingly I prepared

this particular Project. First of all I would like to thank the supreme power, the

almighty God, who is the one who has always guided me to work on the right

path of my life.

I would like to thank Matrix Cellular (International) Services Pvt. Ltd. for

granting me permission to undertake the training in their esteemed organization.

I express my sincere thanks to Mr.Vipul Grover (manager Sales),Ms. Niti Nanra (Deputy Manager),Mr. AnujTyagi(Manager, Sales) ,

Mr. VaibhavArora(Sr.Business Development Exicutive) .

I would also like to thank the members of, Sales team which consists of

Mr.RishiRai, Mr. MohitDua, Mr. SumitBaluni , Mr. NeerajNibhoriawho

devoted their valuable time by helping me to complete myproject.

My faculty Mentor Prof. Rajeev Mathew, for the valuable suggestion and

making this project a real success.


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EXECUTIVE SUMMARY

The project deals with analyzing the impact of media campaigns and

sponsorships on sales and brand visibility in current market scenario and what

are the factors which influence the people for Matrixs Services. As we all know

that India is one of countries where there is largest telecom sector in the world,

a part from there are also competitors in this line.

The purpose of this research is to find out what will be the future scope of

increasing the sales and to see where the company is lacking behind. The

research process chosen by me is qualitative and quantitative research.Questionnaire helps me a lot in finding the actual position of the market.

After analyzing the data the problem, which comes out is that the company still

needs to improve its advertising on TV commercials and radio. The fact that

people using Matrix is the convenience and reliability provided by Matrix staff.

A sample size of about 100 which includes individuals as well as corporatecustomers was taken for purpose from various parts of Delhi and N.C.R . After

the survey was completed, the data was first stored and then analyzed on the

chosen parameters. This analyzed data was later on converted into graphs. Such

as pie chart, bar graphs, etc this was to make result easily comprehensible by

any one going through the report. Later on, all this information was compiled in

the form of a presentable and highly comprehensible report.


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CONTNTS

Page

Sr. No Topic No.

Project Annexure A 1Annexure B 2Annexure C 3Acknowledgment 4

Executive Summary 5

Chapter 1 Project Introduction 81.1 Company Profile 91.2 Current Portfolio 11

1.3 Matrix Clients 131.4 Matrix Products and Offerings 161.5 Media Campaign 171.6 Advertisements 221.7 TV Commercial 231.8 Planning and Sponsorship 24

Chapter 2 Literature Review 31

Chapter 3 Research Method 32

3.1 Research Problem 333.2 Research Methodology 32

3.2.1 Research Objectives 35

3.2.2 Research Design 363.2.3 Sampling Design 37

3.2.4 Data Collection Method 38

3.3 Scope of the Project 40


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Page

Sr. No Topic No.

Chapter 4 Findings And Analysis 414.1 Global scenario 424.2 S.W.O.T Analysis International Sim Sector 43

4.3 Comparison with Competitors 444.4 S.W.O.T Analysis Matrix Cellular 464.5 Affiliates 474.6 RBI (Foreign Exchange Management Act) 494.7 Financial Analysis 55

Chapter 5 Conclusion And Recommendations 72

5.1 References 74


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1.1 Company Profile

Matrix Cellular International Services Pvt. Ltd. Is a Delhi basedCompany in

the business of providing mobile phone and wireless communication service, on

Domestic and International basis.

We have a very simple vision. A vision to get people connected cost effectively.

Our Services are cheaper & convenient.

We started operations in 1995 by offering short term mobile phone service

across New Delhi.

With the experience of these past several years, we have emerged as theundisputed leader in cellular phone rentals in India enabling individuals,

corporate and foreign mission (during diplomatic visits) of all sizes to

communicate wherever there is a cellular phone network. Today we offer

the best in mobile services both in India and overseas.

Since inception, we have aimed to be the best in service, quality,innovationand choice. We were the first to introduce concept oflocal connectivity, by

offering country specific mobile connections.


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Why Matrix?

Global roaming costs are exorbitant.

Customer has to bear the ISD charges for all calls that you receive.

It may notbe possible for customers to inform their contact personsthat

they are traveling out of the country. In effect, customers receive a lot of

unwanted calls.

Matrix provides country specific mobile connections that help save almost85%

of International Roaming charges at the same time providing all theservices

of the Network in that country.

We also provide the facility of paying in Indian Rupees. Thus, saving the

hassle of procuring a mobile connection on arrival in that country, and spending

valuable foreign exchange while clearing the mobile bills.

We act as Telecom Consultants and suggest a communication solution

which best suites a customer.

Our unique combination oflow airtime rates, global coverage, and courteous

24X7 customer care and toll free number, gives us an edge inthe travel

communications industry and the choice of many businesses,government agencies, and individual travelers.


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1.2 Current portfolio

Our portfolio of Countries includes

United States of America

United Kingdom

Australia

Argentina

Belgium

Greece

Holland

Israel

China

Japan

Germany

Singapore

Hong Kong

Canada

France

New Zealand

South Africa


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Sri Lanka

Israel

Italy

Brazil

Thailand

Turkey

Italy

Malaysia Mauritius

Mexico

South korea

Spain

Switzerland Taiwan

And many more

Global sim card which works all aross the globe


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1.3Matrix Clients

Following is a list of just a few of the better known clients of ours, - the list isever

growing

Embassies and High Commissions

US Embassy

German Embassy

Netherlands Embassy

Embassy of Finland

Embassy of Spain

Embassy of Chile

Embassy of Iran

Embassy of Switzerland

Embassy of Austria

Korean Embassy

British High Commission

Canadian High Commission

Australian High Commission

British Council


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Hotels

Oberoi Hotels

Taj group of Hotels

Hyatt

Media

BBC

CNN

NDTV

Times of India

Hindustan Times

Organizations

U.N.O.

FICCI

CII

EPCH (Export Promotion Council of India)

CSIR

ITPO


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Corporate Houses

Alvis OMC South Africa

NR PTY Ltd, Australia

Reliance Industries

Hero Honda

Raymonds

TATA Motors

ProCall Pvt. Ltd.

Interglobe Enterprises Ltd.

British Gas

William Econer

Satya Paul

Ranbaxy

Travel Fraternity

Kuoni Travel Ltd.

Cox and Kings

Virgin Atlantic Airways

British Airways

Celebrities

AmitahabBachchan(The Actor)

Shah Rukh Khan (The Actor)

Sanjay Dutt (The Actor)

JuhiChawla (The Actress)

A.R. Rehman (The Music Director)

Farah Khan (Choreographer)

Indian Cricket Team Members


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1.4 Matrix Products and Offerings

MATRIX VOICE CARD MATRIX DATA CARD

MATRIX FOREX CARD CURRENCY


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1.5Media Campaigns by Matrix Cellular

Wills lifestyle fashion week 2011

Matrix Cellular announced its association with Asia's largest trade event, theWills Lifestyle India Fashion Week (Spring/Summer 2011) as the officialTelecom Partner for the event. Wills Lifestyle India Fashion Week is hosted byIndias apex fashion body, the Fashion Design Council of India (FDCI)


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Matrix Cellular, the leading service provider of international telecommunicationservices, has announced its association with Kolkata Knight Riders for thesecond consecutive year as the official sponsor in the fifth season of the Indian

Premier League (IPL 2012).The Matrix logo is on the back of the KKR jersey and the partnership will entaila series of marketing activations and advertising campaigns to promote the

brand values. As the Official Team Partner, Matrix will be entitled to a numberof benefits besides its logo on the team jerseys. The smart and dynamic brandwill also have significant in-stadia presence during Kolkata Knight Ridersmatches in the form of board branding, placards and cheer sticks in designatedstand.

The Kolkata Knight Riders whose home games were played at Eden Gardenstadium in Kolkatafeatured a host of household names in 2012, including the

feisty and firm batsmen of the current era, GautamGambhir who lead the team,South African star Jacques Kallis, one of the fastest Australian bowler Brett Leeas well as Indian bowler/batsman Yusuf Pathan.


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Association of Matrix cellular with the Kolkata Knight Riders for the secondconsecutive year. With a new, smart and dynamic team this year, along withsome of the highly experienced international players under the leadership of

GautamGambhir, the team would continue to exemplify excellence therebytouching peoples heart and minds which goes in sync with our brand promise.

Being the most watched sports event, the Indian Premier League serves as alucrative platform to reach out to customers and leverage the brand at a nationalas well as international level. Associating with KKR offers us the opportunity toraise awareness about the brand as KKR is the biggest franchise, with thelargest fan following in the country.

Kolkata knight riders won IPL 2012 and created a bench mark for their ownwhich increases brand visibility and brand awareness among Indian andinternational audience which will directly or indirectly increases affects thesales of the products.


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Chandigarh hockey team 2012 sponsored by matrix cellular

Sponsoring a state team of Chandigarh may seems strange but even after being astate of farmers. Most of Punjabis travel abroad frequently because of so manyreasons, their relatives living in abroad, sikh people wants to settle in abroad andso on. Which give Matrix a good platform to increase the visibility of their brand.

Golf events in Chandigarh golf club sponsored by matrix (2012)

Golf is a sport of kings. That actually means this game is played by rich/ royalpeople. So sponsoring this game makes sense because this provides Matrixbrands awareness among people who visit abroad more often.


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Theater festivals sponsored by Matrix in Delhi 2010

Habitat World presents The 6th Old World Theatre Festival which is regarded

as one of the foremost Theatre Festivals in the city with a distinct identity of itsown. Presented by Matrix Cellular the festival showcases a hand pickedselection of plays by renowned personalities ranging from ChrisBanfieldsMistakenAnnieBesant in India, RaellPadamseesRazmatazz,ManavKaulsIllhaam etc.

Matrix cellular also sponsors various student Pre-departures every year

The student consultants would include British Council, Study overseas. TheUSEducational Foundation in India (USEFI), New Delhi organizes pre-departure orientation programme for Indian students leaving for higher studiesin the US. The panelists provided the students with a widespread synopsis ofculture, academic environment and social life in the U.S. The sessionsattracted numerous questions on cross-cultural issues which helped studentsget a clear perspective of what to expect in the US Informative presentationswere made by the sponsors including American Express, Centurion Bank ofPunjab, ICICI-Lombard General Insurance, Jet Airways and Matrix CellularServices informing students about currency, travel, student insurance, airtickets and communication related options for their travel to the US Studentsalso participated in a cultural quiz competition and received attractive prizesfrom the sponsors. Diverse sessions at the pre-departure programme providedseveral valuable tips to Indian students that were aimed at smooth adaptationto the US academic and social environment.


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1.6 Advertisements done by Matrix Cellular

Matrix has launched its latest TVC for the Matrix ForEx Cards starring Shah

Rukh Khan and key players from the Kolkata Knight Riders team. Thecommercial follows Matrixs tie-up with the KKR team for Indian PremierLeague Season 4 as Principle Sponsor. The TVC, created by Equus Red Cell,was released on-air on May 19, 2011.

The TVC first attracts attention for the use of the Don theme. Swapan Seth,

Founder and CEO, Equus Red Cell, divulged that the forthcoming release ofthe movie played a role in taking the Don route. In a conversation withexchange4media, he said, We thought the theme would generate greatercuriosity. In fact, it was SRK who kindly offered it since he loved the idea and

the film.

In the ad film, SRK and his team players are arrested for killing cash. Muchlike the movie, the commercial also includes a chase sequence, followed by aninterrogation, where Don and his team members speak on why cash had todie. Sharing more on what led to the use of this thought process, Seth said,The idea of humanising Cash was interesting. Then to create a murder, achase, an arrest and consequent interrogation of SRK and the KKR Knightswas all a juicy plot.

The TVC is planned to be on-air for at least another four weeks. In an earlierconversation, Matrix officials had informed that the brand was looking atspending around Rs 18-20 crore in the campaigns around KKR. The campaignwould be seen in print as well.

Matrix has been niche in the manner it has advertised, but associating with aplatform as large as the IPL would take the brand to a broader level ofconnecting with consumers. This was the reason to partner with KKR and theIPL in the first place, and this latest commercial is another step in thatdirection for Matrix.


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1.7 Matrix Cellular launching new TelevisionCommercial on Data Services for Smart phones

Matrix Cellular Services, the leading service provider ofinternationaltelecommunication services, is all set to launch its new televisioncommercial to apprise people about its Data Services for Smartphones.

The creative agency for the commercial is Equus Red Cell and it is producedby Frog Unlimited. The 60 second commercial highlights the fact that Matrixdata services cost users just 1/10th the price of International Data Roaming

Charges.

Using data services such as downloading emails, browsing or using BBM on aSmartphone while traveling abroad can be very expensive as charges as leviedon a per MB basis on International Roaming. Activating data services with aMatrix SIM card on a Smartphone costs customers one- tenth the cost ofInternational Data Roaming charges that helps customers save more whentravelling abroad.

The TVC follows a conversation between two wives waiting for their husbandsat an airport with one showing the other pictures of accessories her husband has

bought her on his trip abroad. The other wife complains that despite herhusband being on a business trip abroad since past 10 days, hasntcalled/BBMed her at all primarily because of high International Roaming rates.The first wife then informs her about the benefits of using a Matrix CellularSIM card while traveling abroad.

The sole purpose of this commercial is to educate people about the benefits and

savings of using Matrix Data Services on their Smartphones while travelingabroad. Our data services allow customers to read emails, share images andvideos and use other data services such as BBM as and when they choose. Wehave always believed in satisfying the changing needs of customers and we lookforward to Matrix being synonymous with International travel solutions
http://press-release.medianama.com/matrix-cellular-launching-new-television-commercial-on-data-services-for-smartphones-223http://press-release.medianama.com/matrix-cellular-launching-new-television-commercial-on-data-services-for-smartphones-223http://press-release.medianama.com/matrix-cellular-launching-new-television-commercial-on-data-services-for-smartphones-223http://press-release.medianama.com/matrix-cellular-launching-new-television-commercial-on-data-services-for-smartphones-223http://press-release.medianama.com/matrix-cellular-launching-new-television-commercial-on-data-services-for-smartphones-223http://press-release.medianama.com/matrix-cellular-launching-new-television-commercial-on-data-services-for-smartphones-223


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1.8 Need of media planning and Sponsorships

We've all heard the old adage 'never put all of your eggs in one basket,' andwhen it comes to developing an online presence for yourself or your brand thissaying could not fit more perfectly.

While it's great to develop a strong and comprehensive website to serve as a hubof information, it's just as important to develop a presence in different channelsso that your brand can reach as many people as possible. And while almostevery brand has a Facebook and Twitter account, many fail to take advantageof other media-specific channels such as YouTube, Flickrand Slideshare.

The great thing about utilizing such websites is that you are placing your nameand multimedia in front of an audience of people who are already looking for it.Users will be able to find you in the type of medium they want instead of havingto sift through general search results. These websites also make it incrediblyeasy to redirect traffic to your individual site, creating an easy way to garner anew variety of interested visitors.
http://www.newmediacampaigns.com/page/social-media-should-be-embraced-through-an-entire-organizationhttp://www.newmediacampaigns.com/page/twitter-for-business-monitoring-and-contributing-to-the-conversationhttp://www.youtube.com/http://www.slideshare.net/http://www.slideshare.net/http://www.youtube.com/http://www.newmediacampaigns.com/page/twitter-for-business-monitoring-and-contributing-to-the-conversationhttp://www.newmediacampaigns.com/page/social-media-should-be-embraced-through-an-entire-organization


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The Facts

People are watching 2 billion videos a day on YouTube and uploadinghundreds of thousands of videos daily.

The user base is broad in age range, 18-55, evenly divided between malesand females, and spanning all geographies.

Fifty-one percent of users go to YouTube weekly or more often; 52percent of 18-34 year-olds share videos often with friends and colleagues.

Flickr hosts more than 4 billion images.

Flickr allows you to connect with friends and family and allows you to

set special viewing privileges.

Slideshare garners 25 million visitors a month and 70 millionmonthly pageviews

Slideshare allows you to share presentations, documents, and pdfswith colleagues and interested users.

Building your presence on YouTube

As one of the most visited sites on the Internet, YouTube is a place with

unbridled opportunity. By placing your videos on the site, youre sharing yourbrand and message with people who will actively seek it out. When you createyour YouTube account, you also create a user page that maintains all of yourvideos in one central locationmaking it easy for visitors to view videos insuccession.

YouTube also allows for taggingso that you can list keywords that relate toyour video and keywords that your visitors may use when searching for similarcontent. By optimizing the titles of your videos and the key words and phrases

you use in your tags, youll be able to reach new visitors through search.


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Once you upload your videos to YouTube its easy to embed those videos onyour websitecreating a direct link between YouTubes services and yourwebsite.Other features of YouTube include:

Public or private videos: Users can elect to broadcast their videos publicly orshare them privately with friends and family upon upload.

Subscriptions: Users are able to keep track of their favorite users' new

videos.

Record from Webcam: Users with a webcam and Flash software are able toinstantly record video responses or normal videos onto the site rather thanhaving to prerecord and then upload the video.

Separate index on Google: When users upload videos to YouTube, thesevideos are indexed separately on Google searches displaying as videoresults instead of in the general results.

Building your presence on Flickr

Flickr works similarly to YouTube in that you can easily embed photos on yourwebsite that draw from the photos on your Flickr account.

Flickrs clean and organized layout makes adding and searching for photoseasy for users and visitors alike. It also allows you to tag photos so that theycan be tied to a certain topic. Flickr also allows you to create sets of photos thatdisplay as slideshows a feature that is particularly useful when showcasing

photos from a specific event or time period. By including rich descriptions suchas titles, tags, location, and people, you give your images context and a life oftheir own.
http://www.newmediacampaigns.com/page/10-ways-to-easily-improve-your-website-using-embed-codeshttp://www.newmediacampaigns.com/page/10-ways-to-easily-improve-your-website-using-embed-codeshttp://www.newmediacampaigns.com/page/10-ways-to-easily-improve-your-website-using-embed-codeshttp://www.newmediacampaigns.com/page/10-ways-to-easily-improve-your-website-using-embed-codeshttp://www.newmediacampaigns.com/page/10-ways-to-easily-improve-your-website-using-embed-codeshttp://www.newmediacampaigns.com/page/10-ways-to-easily-improve-your-website-using-embed-codes


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Flickr also encourages users to comment on each others photos, facilitating asense of community amongst its users. By using Flickr, youre reaching out toothers through a channel that devotes itself to one type of media. Flickr alsooffers flexible privacy controls making sharing images simple, secure, andcomfortable.

Building your presence on SlideShare

Simply put, SlideShare is the best way to get your presentations and documentsout there on the web. Its a place where you can share your ideas and learnfrom the ideas of others. Users regularly comment, favorite, and downloadcontent. And just like Flickr and YouTube, SlideShare offers an easy way toembed their presentations on your website.

Other features of SlideShare include:

Embed slideshows into your own blog or website.

Share slideshows publicly or privately. There are several ways toshare privately.

Synch audio to your slides.

Market your own event on slideshare.

Join groups to connect with SlideShare members who share your interests.

Download the original file.


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Analysis of Impact of Media campaigns

Save time

Time is money. Especially when youre running a business. Traditionalmarketing campaigns often require a huge time investment to develop andlaunch. If youre looking for instant gratification for your marketing efforts,social media is a great solution.

Setting up a social media marketing campaign can be quick and often youll see

results within days (sometimes even hours!). By making use of Facebook,Twitter, LinkedIn, YouTube and other social media outlets, you are able toquickly create an Internet presence and b.e connected to potential clients.

Save money

Radio, television and newspaper advertising can be costly; especially if youretrying to create a creative and eye catching campaign. Social media, on theother hand, is extremely inexpensive. In many instances, its even free!Theres no cost involved in creating a Facebook page, Twitter account or

LinkedIn profile. And you can upload a video to YouTube for free.

Many companies do make the small investment of having contests andgiveaways to attract attention. However, the premiums associated with thesegiveaways often cost just the fraction of the price that you would have spent ina traditional marketing campaign.

Make smarter connections

Social media enables you to make smarter connections with potential clients.You can be much more targeted with your efforts than with advertising andother traditional marketing methods.

Friends often solicit each other for advice before making a purchase or enrolling ina service. They want to utilize a company that others like them trust. On Facebookand Twitter people are connected with others who have similar interests and needs.

Simply by getting your current clients to Like your Facebook comments and

become Fans of your Facebook page, you are becoming connected to all oftheir likeminded friends.


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Web Presence

The other advantage of social media campaigns is the development of webpresence. No site gets the traffic it wants if no-one knows about it. SEO is about

attracting attention in the search engine results pages, but there are other ways toget traffic. Your web presence is about the number of people who know you allover the net. Social media campaigns actively spread word about your business.

Influence

This is the last advantage that occurs to most people, perhaps because it takes awhile to impact on your business. In participating regularly on a social medianetwork, your name gradually gets known. If your campaign has been planned

properly, your name will be linked to intelligent discussion and knowledge ofyour industry. This adds up to lend your business a certain authority.

Having authority in your industry gets you lots of free publicity, influences thenumber of links you receive and helps your business image. Many companies

have found that this is the biggest benefit of all from asocial media campaignand the longest-lasting. If you have acquired authority you must sustain it viareputation management.

taking advantage of these services youre not only reaching out to followers ina channel that they are familiar and comfortable with but youre also creatingdirect links between these services and your main website.

The more a person can get involved with your company and its products and

services, the more likely it becomes that youll be able to convert them into acustomer. And, thankfully, people go onto social media sites with the sole

purpose of being active

In nut shell directly or indirectly all these media campaigns are helping anorganization to Increase the sales and their visibility of brands.
http://www.seoconsult.com/About-SEO/Authority-and-SEO.htmlhttp://www.seoconsult.com/SEOBlog/social-media-optimisation/the-secret-to-social-media-success.htmlhttp://www.seoconsult.com/SEOBlog/social-media-optimisation/the-secret-to-social-media-success.htmlhttp://www.seoconsult.com/SEOBlog/social-media-optimisation/the-secret-to-social-media-success.htmlhttp://www.seoconsult.com/SEOBlog/social-media-optimisation/the-secret-to-social-media-success.htmlhttp://www.seoconsult.com/About-SEO/Authority-and-SEO.html


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Literature Review

1.Product and Sales Analysis, Analyst-Mr. Rishi Rai, MDI GGN Nov 11

2.Media campaign and sales analysis, Analyst- Ms. SandhyaTugatkar,

November 11

3.Brand and Media Campaign, Analyst- Mr. AnandGovind, PSB, GGN

May 2012

4.Effect of globalization and Advertisement over sales, NSHM, GGN

Analyst- Ms. RittuBhagat March 2013.

5.Analysis of Competitor Advertisement stratagy ,Analyst- Devesh

Kumar IIMT, GGN Nov09

6.Global Sales And Advertisement,Analyst -Thakur kumarVikram,

IILM,GGN, Nov08

7.Human Resource and media campaign requirement in the growth of

manpower, Analyst Kishore Anand, J.K Business School, GGN,March

2008

8.E-Book of Research Methodology by C.R Kothari.

9.SIP Report on benchmarking the quality of services by recording the

customer satisfaction index of the existing customers By Anita Chandra

from FORE SCHOOL OF BUSINESSVasantkunj 2011-12


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3.1RESEARCH PROBLEM

Stage 1: Problem Definition

The first step in this project is to define the problem. In defining the problem, Itook into account the purpose of the study, the relevant backgroundinformation, what information is needed, and how it will be used in this

project.

Stage 2: Development of an Approach to the Problem

Development of an approach to the problem includes formulating an objectiveor theoretical framework, analytical models, research questions, hypotheses,and identifying characteristics or factors that can influence the research design.

Stage 3: Research Design Formulation

A research design is a framework or blueprint for conducting the researchproject. It details the procedures necessary for obtaining the requiredinformation, and its purpose is to design a study that will determine possibleanswers to the research questions, and provide the information needed for

decision making.

Conducting exploratory research, precisely defining the variables, and designingappropriate scales to measure them are also a part of the research design.

The issue of how the data should be obtained from the respondents mustbe addressed. It is also necessary to design a questionnaire.

More formally, formulating the research design involves the following steps :

Data analysis

Qualitative research Methods of collecting quantitative data (survey, observation, and

experimentation)

Definition of the information needed

Measurement and scaling procedures

Questionnaire design

Sampling process and sample size

Plan of data analysis


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3.2 RESEARCH METHODOLOGY

Assumptions

It has been assumed that sample of 100 respondents represents the

whole population.

The information given by consumers is not biased.

Research Instrument

The research instrument used in the study was the Questionnaire. While

designing the questionnaire care has been taken in formulating and sequencing

the questions so that it allows logical thinking processes for the respondents.

Use of both close ended and open ended questions were made so the analysis

becomes easy and respondents can freely answer the question.


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3.2.1RESEARCH OBJECTIVE

To find out the future opportunities of the product.

To identify Matrixs brand value and reliability.

To find out impact of sponsorship and media campaigns on sales.

To understand perception of customers for Matrixs Services.

To identify the hidden expectations of customers from the company.

To understand the satisfaction level of customer for international services

provided by Matrix.


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3.2.2RESEARCH DESIGN FORMULATION

A research design is a framework or blueprint for conducting the researchproject. It details the procedures necessary for obtaining the required

information, and its purpose is to design a study that will determine possibleanswers to the research questions, and provide the information needed fordecision making.

Conducting exploratory research, precisely defining the variables, anddesigning appropriate scales to measure them are also a part of the researchdesign.

The issue of how the data should be obtained from the respondents mustbe addressed. It is also necessary to design a questionnaire.


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3.2.3 SAMPLING DESIGN

Large sample gives reliable result than small sample. However, it is not feasible

to target entire population or even a substantial portion to achieve a reliableresult. So, in this aspect selecting the sample to study is known as sample size.

Hence, for my project my sample size was 100.

The Sample Size of 120 is not enough to draw a conclusion but as per the time

assigned it was difficult to take a sample size more than 100.

This research is related to the individual customer segment. For this research

only those people who fly abroad were the target respondents.

Thus the target respondents were:-

1. Matrix Cellular services existing user individual customer.

2. Matrix Cellular services existing user corporate customer.


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3.2.4 DATA COLLECTION METHOD

In this project primary data collection method has been used. The data whichis valid data, used in project is first times.

In this project questionnaire has been used as primary data. There are open-

ended and close-ended questions. There are some multiple choice questions aswell, For knowing the satisfaction level for Matrix cellular services

Stage 1: Execution of project

It is the very important step in the research process accuracy findings depends

on how systematically the study has been carried out in time so that it can make

some sense when required. I have executed the project after prior discussion

with the guide and structured in following steps:-

Preparation of questionnaire.

Before preparing questionnaire discussion with guides and concern

people has been done.


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Stage 2: Field Work or Data Collection

Field work consist of direct interaction with clients (corporate as well asindividual). Documentation needs to be done at every connection purchased.

And all documents needs to be verified also, and Filling up questionnaire formsby clients .

Stage 3: Data Preparation and Analysis

Data preparation includes the editing, coding, transcription, and

verification of data. Each questionnaire or observation form is inspected, oredited, and, if necessary, corrected.

Number or letter codes are assigned to represent each response to eachquestion in the questionnaire

Verification ensures that the data from the original questionnaires havebeen accurately transcribed, while data analysis, guided by the plan of dataanalysis, gives meaning to the data that have been collected.

.

Stage 4: Report Preparation and Presentation

The entire project is documented in a written report which addresses thespecific research questions identified, describes the approach, the datacollection, and data analysis procedures adopted, and presents the results andthe major findings.

The findings should be presented in a comprehensible format so that theycan be readily used in the decision making process.


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3.3 SCOPE OF THE PROJECT

The international travelers are increasing every year. Hence to find how

this information can be used from business perspective.

Even the existing clients of the company once satisfied with the services

will help the company grow as the company gets its business mainly

through references given by the clients instead of the regular

advertisements.

Its very important to keep the existing customers satisfied with the beliefthat small customer will become a big customer tomorrow and a big

customer will become a bigger customer tomorrow.


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4.1Global Scenario

Telecommunication is among the fastest growing service in the world. In the

developed nation, with saturation demand of basic services the accent is on

value added services.

Developed nation are trying to augment basic services, infrastructure and also

introduce value added services. Over the past few decades most nation include

Japan, USA, UK, Singapore, and New Zealand have allowed private sector

industry in the telecom services.

Others like India, china, France and Germany are following suit.

In developing nations even international services are offered by operators but in

most developing countries overseas are controlled with competitive prices

reduction in tariff charged for overseas calls from developed nations.

At the time internet technology that is voice services via internet medium is on

rise. This enables international connectivity at the price of a local call and eats

into revenue of international carriers

In order to carry out Analysis of domestic sim operations and international sim

operations between Matrix and other cellular Companies and network

Operators, operating in India, first we have to know about the strengths,

weakness, opportunities and threats that pre dominantly exist in this sector.


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4.2 S.W.O.T Analysis of International Sim Sector

Strength

Reduced calling and data cost

Lower service providing and hiring costs Reduced problems regarding connectivity

Higher reliability; safe and secure communication

Customized services

Reduced services charges

Development of specialized services

Weaknesses

Highly capital-intesnsive business

Long break even period High concentration of traffic by some service provider

Lack of coordination with abroad service providers

High dependency on external agencies

Changes in government polices

Pricing policy by Indian and Foreign Government

Opportunities

Increase in voice and data charges in the country

Growing organized sector Increasing international sector

Developments in governments policies

Liberalization and privatization of the sector

Threats

Competition from small and huge service providers

Concentration on Domestic sim for foreign use and direct

purchase of foreign sim.


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4.3 Comparison of Matrix with its Competitors

MATRIX

March 1995, Matrix came into existence.

Indias 1st

company to venture into such a niche segment Countryspecific Simcards

By 2007 Pan India presence.

UNICONNECT

Started in October 1996 2nd

company to venture in this market segment.

UNICONNECT was established in 1983 as an investment vehicle,however, eventually moved into the emerging telecom sector

CLAY TELECOM

1st

April 2000 Clay telecom was setup.

Incepted nearly a decade ago,

Clay Telecom is a dynamic global provider of wireless telecomsolutions catering to both B2B and B2C market segments

RELIANCE COMMUNICATIONS

27 December 2002, Reliance infocomm inaugurated.

June 2008 Reliance touched 50 million mark.

Launched its Country specific sim cards business a year ago in thename of RELIANCE PASSPORT SERVICE


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BHARTI AIRTEL LTD Ranked number#1 today in Indian mobile market.

April 2006 Bharti global limited was awarded a telecommunications

license inJersey in the channel Island.

Launched its Country specific sim cards business a year ago in thename of AIRTEL WORLD Started only in Delhi & NCR regions

Matrix provides better services and rates in comparison of its

competitors


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4.4 S.WO.T Matrix Cellular (Int.) Services Pvt. Ltd.

Strengths

Matrix hires the services from international service provider, which helps in

saving of cost and need for setup own network. Using internationalnetwork

would result in a savings of approx. Rs.100. Over the calls made from abroad

would result in a savings of approx. Rs,150. Over theinternational calling. This

would help the customer of ALL in reducing the calling cost and reduction in

money as compared to other cellular operators, moreover, Clay Communication,

Uniconnect, BhartiAirtel and Reliance Communication are also located in India,

which provides good and easy connectivity in abroad including data services.


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4.5 Affiliates of Matrix Cellular


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4.8 RBI FEMA (Foreign Exchange Management Act)GUIDELINES

For private visits abroad, other than to Nepal and Bhutan, any residentcan obtain foreign exchange up to an aggregate amount ofUSD 10,000 inanyone financial year, on self-declaration basis, irrespective of thenumber ofvisits undertaken during the year.

This limit of USD 10,000 or its equivalent per financial year for privatevisits can also be availed of by a person who is availing of foreignexchange for travel abroad for any purposes, such as, for employment orimmigration or studies.

For private visits abroad, other than to Nepal and Bhutan, any residentcan obtain foreign exchange up to an aggregate amount ofUSD 10,000 inanyone financial year, on self-declaration basis, irrespective of thenumber ofvisits undertaken during the year.

This limit of USD 10,000 or its equivalent per financial year for privatevisits can also be availed of by a person who is availing of foreignexchange for travel abroad for any purposes, such as, for employment orimmigration or studies

For business trips abroad to countries, other than to Nepal and Bhutan, aperson can avail of foreign exchange up to USD 25,000 per visit.

Release of foreign exchange exceeding USD 25,000 for business travelabroad (other than to Nepal and Bhutan), irrespective of the period ofstay, requires prior permission from the Reserve Bank.

Travelers are allowed to purchase foreign currency notes / coins only upto USD 3000


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Approximate Number of times a person/corporate purchases Matrixservices in an year

Purchases

2%

8%

0 -20

15%32%

20-40

40-60

60-80

80-100

43%

Interpretation:

The data collected was both from individual clients as well as corporatewhich shows Matrix focuses on corporate more than individual clients

because the no. of clients who visit abroad 0-20 times is very less, there ispossibility that they carry their local to abroad on international roamingrates.

Suggestions:

Matrix should do more campaigns to make people aware of Matrix as a brand.


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1.Attribute most liked about Matrix

Response

12%

convenience14%

value for money

previous experience11% 63% personal contact

Interpretation:

Convenience is what people like about Matrix the most. Personal contacts is

playing a good part in sales, on the other hand previous hassle free experience

affects their sales on a large number.

Suggestions:

Matrix should increase customer convenience as much as they can. But value

for money is also needs to increase so that people buy matrix services for their

economic prices.


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2.Products used by Matrix clients

Response

4%8%

Voice cards

20% Data cards

FOREX cards

68% FOREX currency

Interpretation:

Earlier Matrix deals in voice cards only, which is affecting their sales till now,

the highest portion of sales is voice cards, whereas forex currency is among thelowest. The sales of data cards is increasing but needs to increase more.

Suggestions:

Matrix should start telling their existing clients that they deal in forex cards and

currency too, because whosoever is going abroad would require currency. That

will increase the sales.


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3.How customer get to know about Matrix

Response

22% News Paper

32% Radio

0% Television Commercial

8% Friends

Relatives

13%25%

Office colleauges

Interpretations:

The major sector of Matrix clients are corporate so it affects the brandawareness of matrix, people get to know about matrix mostly from their office

colleagues, newspaper plays an important role but radio doesnt .

Suggestions:

Matrix should start advertising on radio it will definitely increase the sales and

brand awareness. Tv commercials appearance also needs to increase because

Tv has vast audience.


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4.Where customer find Matrix appearance the most

Response

3% 1%

News Paper

27% Radio

Television Commercial

IPL Matches58%

WEB Appearance11%

Baners and Hordings

0%

Interpretation:

More than 50 percent people see Matrix appearance in newspapers that shows it

plays an important role in brand awareness. On the other hand banners and

hording has the least no. IPL matches and sponsoring KKR team was a

profitable decision for Matrix. Match lovers and KKR supporters must know

about matrix after IPL.

Suggestions:

Should continue sponsoring KKR and should increase the no. of TV

commercial. Banners and hording plays an important role in brand visibility

which will make people aware of Matrix as a brand so they need to work upon

it.


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4.9FINANCIAL ANALYSIS

BhartiAirtel Common Size Balance Sheet

Airtel Common Size Balance Sheet

Particulars As at As at As at Common Size Common Size Common Size31st March, 2009 March 31, 2010 March 31, 2011 31st March, 2009 31st March, 2010 31st March, 2011

SOURCES OF FUNDS

Shareholders Funds

Share Capital 1,89,82,398 18,988 18,988 5% 4.54% 3.36%

Reserves and Surplus25,62,95,074 3,46,523 4,19,342 72% 82.94% 74.17%

Employee Stock Options Outstanding 19,83,331 2,839 3,694 1% 0.68% 0.65%

Less: Deferred Stock Compensation 8,24,092 978 908 0.23% 0.23% 0.16%

11,59,239 1,861 2,786 0.33% 0.45% 0.49%

Share Application Money Pending Allotment 2,933 0 0 0.00% 0.00% 0.00%

Loan Funds

Secured Loans 5,17,304 394 171 0.15% 0.09% 0.03%

Unsecured Loans 7,66,19,167 49,995 1,18,804 22% 11.97% 21.01%

Deferred Tax Liability (Net) 0 33 5,276 0% 0.01% 0.93%

TOTAL 35,35,73,182 4,17,794 5,65,367 100% 100% 100%

APPLICATION OF FUNDS

Fixed Assets

Gross Block37,26,67,023 4,42,125 6,14,375 105% 106% 109%

Less: Accumulated Depreciation12,25,33,438 1,61,875 2,07,367 35% 39% 37%

Net Block25,01,33,585 2,80,250 4,07,008 71% 67% 72%

Capital Work-in-Progress 2,56,66,693 15,947 64,976 7% 4% 11%

27,58,00,278 2,96,197 4,71,984 78% 71% 83%

Investments 11,77,77,582 1,57,733 1,18,130 33% 38% 21%

Deferred Tax Asset (Net) 32,71,103 0 0 1% 0% 0%

Current Assets, Loans and Advances

Current Assets

Inventories 6,21,510 272 344 0.176% 0.07% 0.06%

Sundry Debtors 2,55,00,488 21,050 23,758 7.212% 5.04% 4.20%

Cash and Bank Balances 2,25,16,027 8,167 1,338 6.368% 1.95% 0.24%Other Current Assets 11,97,127 664 1,015 0.339% 0.16% 0.18%

0.00%

Loans and Advances 4,44,14,947 63,146 1,03,037 12.562% 15.11% 18.22%

Total Current Assets 9,42,50,099 93299 129492 27% 22% 23%

Less: Current Liabilities and Provisions

Current Liabilities13,11,79,816 1,22,848 1,47,963 37% 29% 26%

Provisions 63,44,004 6,587 6,276 2% 2% 1%

Total Current liabilties13,75,23,820 1,29,435 1,54,239 39% 31% 27%

Net Current Assets -4,32,73,721 -36,136 -24,747 -12% -9% -4%

TOTAL 35,35,75,242 4,17,794 5,65,367 100% 100% 100%


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BhartiAirtel Common Size Profit and Loss Account

Airtel Common Size Profit and Loss Account

Particulars For the year ended For the year ended For the year ended Common Size Common Size Common Size

March 31, 2009 March 31, 2010 March 31, 2011 March 31, 2009 March 31, 2010 March 31, 2011INCOME

Service Revenue 33,99,95,752 3,55,861 3,79,924 99.96% 99.93% 99.94%

Sale of Goods 1,47,150 234 234 0.04% 0.07% 0.06%

Total Income 34,01,42,902 3,56,095 3,80,158 100.00% 100% 100.00%

EXPENDITURE

Access Charges 5,20,34,149 44,357 49,872 15.30% 12.5% 13.12%

Network Operating 6,32,68,921 74,467 85,712 18.60% 20.9% 22.55%

Cost of Goods Sold 1,24,051 203 161 0.04% 0.1% 0.04%Personnel 1,43,36,407 15,305 14,512 4.21% 4.3% 3.82%

Sales and Marketing 2,17,63,991 24,049 31,802 6.40% 6.8% 8.37%Administrative and Other 2,08,75,328 22,401 21,353 6.14% 6.3% 5.62%

Total Expenditure 17,24,02,847 1,80,782 2,03,412 50.69% 50.8% 53.51%

Profit before Licence Fee, Other Income,

Finance Expense (Net), Depreciation, Amortisation,

Charity and Donation and Taxation 16,77,40,055 1,75,313 1,76,746 49.31% 49.2% 46.49%

Licence fee & Spectrum charges (revenue share) 3,58,21,761 37,549 42,903 10.53% 10.5% 11.29%

Profit before Other Income, Finance Expense (Net),

Depreciation, Amortisation, Charity and Donation

and Taxation 13,19,18,294 1,37,764 1,33,843 38.78% 38.7% 35.21%

Other Income 14,07,368 897 1,129 0.41% 0.3% 0.30%

Finance Expense (net) 1,76,39,842 -8,556 1,308 5.19% -2.4% 0.34%

Depreciation 3,20,62,839 37,939 41,937 9.43% 10.7% 11.03%Amortisation 17,88,151 2,106 4,179 0.53% 0.6% 1.10%

Charity and Donation [Rs 30,000 thousand 2,19,463 179 290 0.06% 0.1% 0.08%

Profit before Tax 8,16,15,367 1,06,993 87,258 23.99% 30.0% 22.95%

MAT credit -13,96,304 -10,386 -12,469 -0.41% -2.9% -3.28%

Tax Expense 0.00% 0.0% 0.00%

Current Tax 91,73,614 19,813 17,315 2.70% 5.6% 4.55%

Deferred Tax -39,59,059 3,304 5,243 -1.16% 0.9% 1.38%

Fringe Benefit Tax 3,58,731 0.11% 0.0% 0.00%

Profit after Tax 7,74,38,385 94,262 77,169 22.77% 26.5% 20.30%

Profit/ (Loss) Before Tax and adjustments

Transferred from Debenture Redemption Reserve 4,411 38 65 0.0013% 0.0% 0.02%

Transferred to General Reserve 60,00,000 7,100 5800 1.76% 2.0% 1.53%

Dividend Proposed 37,96,480 3,798 3,798 1.12% 1.1% 1.00%

Dividend Paid 0.00% 0.0% 0.00%Tax on Dividend Proposed / Paid 6,45,212 645 601 0.19% 0.2% 0.16%

Profit after Appropriation 6,70,01,104 82,757 67,035 19.70% 23.2% 17.63%

Profit brought forward 11,79,72,158 1,85,028 2,67,785 34.68% 52.0% 70.44%

Profit carried to Balance Sheet 18,49,73,262 2,67,785 3,34,820 54.38% 75.2% 88.07%


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Reliance Common Size Balance Sheet

Reliance Common Size Balance Sheet (in Crores)

Particulars As at As at As at Common Size Common Size Common Size

31st March, 2009 March 31, 2010March 31, 2011 31st March, 2009 31st March, 2010 31st March, 2011

SOURCES OF FUNDS (%) (%) (%)

Shareholders Funds

Share Capital 1032.01 1032.01 1032.01 1.25% 1.38% 1.30%

Reserves and Surplus 50658.3149466.8847112.47 61.33% 65.98% 59.19%

51,690.3250,498.8948,144.48 62.58% 67.35% 60.49%

Loan Funds

Secured Loans 3000 300015226.02 7.91% 4.00% 19.13%

Unsecured Loans 27903.6121478.2816226.72 33.78% 28.65% 20.39%

30,903.6124,478.2831,452.74 37.42% 32.65% 39.51%

TOTAL 82593.9374977.1779597.22 100.00% 100.00% 100.00%

APPLICATION OF FUNDS

Fixed Assets

Gross Block 37941.1539838.1740904.17 45.94% 53.13% 51.39%

Less: Accumulated Depreciation 6533.38 9225.6912063.27 7.91% 12.30% 15.16%

Net Block31,407.7730,612.4828,840.90 38.03% 40.83% 36.23%

Capital Work-in-Progress 3643.86 1683.52 9907.66 4.41% 2.25% 12.45%

35,051.6332,296.0038,748.56 42.44% 43.07% 48.68%

Investments 31,364.7531,898.6032,102.13 37.97% 42.54% 40.33%Current Assets, Loans and Advances

Current Assets

Inventories 253.14 298.34 306.11 0.31% 0.40% 0.38%

Sundry Debtors 1482.22 1738.63 1969.25 1.79% 2.32% 2.47%

Cash and Bank Balances 535.15 82.18 3813.21 0.65% 0.11% 4.79%

Other Current Assets 1919.38 1928.72 2110.82 2.32% 2.57% 2.65%

4189.89 4,047.87 8199.39 5.07% 5.40% 10.30%

Loans and Advances 21353.1215958.0710954.43 25.85% 21.28% 13.76%

25,543.0120,005.9419,153.82 30.93% 26.68% 24.06%

Less: Current Liabilities and Provisions

Current Liabilities 5781.49 5836.53 7551.94 7.00% 7.78% 9.49%

Provisions 3583.97 3386.84 2855.35 4.34% 4.52% 3.59%

9,365.46 9,223.3710,407.29 11.34% 12.30% 13.07%

Net Current Assets 16,177.5510,782.57 8,746.53 19.59% 14.38% 10.99%

TOTAL 82593.9374977.1779597.22 100.00% 100.00% 100.00%


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Reliance Common Size Profit and Loss Account

Reliance Commom Size Profit and Loss Account (in Crores)Particulars For the year endedFor the year endedFor the year ended Common SizeCommon SizeCommon Size

March 31, 2009March 31, 2010March 31, 2011 March 31, 2009March 31, 201 March 31, 201

INCOMEService Revenue and Other Operating Income 13,610.58 12,290.61 12,129.77 99% 98% 96%Other Income 84.08 221.11 484.25 1% 2% 4%

13,694.66 12,511.72 12,614.02 100% 100% 100%EXPENDITUREAccess Charges, License Fees and Network Expenses 7,054.74 9,017.64 9,327.66 52% 72% 74%Payments to and Provisions for Employees 758.36 671.79 608.07 6% 5% 5%Commission to Non Executive Directors -3.8 0.6 0 -0.03% 0.0048% 0%Sales and General Administration Expenses 2,252.55 1,731.01 1,772.15 16% 14% 14%

10061.85 11,421.04 11,707.88 73% 91% 93%Profit before Financial Charges, Depreciation andAmortisation, Exceptional Items and Tax 3,632.81 1,090.68 906.14 27% 9% 7%Financial Charges (net) 344.06 -1,058.38 178.11 3% -8% 1%

Profit before Depreciation and Amortisation,Exceptional Items and Tax 3,288.75 2,149.06 728.03 24% 17% 6%Depreciation and Amortisation 2,296.53 2,795.22 2,855.62 17% 22% 23%Depreciation adjusted against Provision for Business Restructuring -363.02 -107.5 -86.39 -3% -1% -1%Depreciation adjusted against General Reserve III 0 -1,176.48 -1,174.96 0% -9% -9%Profit/ (Loss) before Exceptional Items and Tax 1,355.24 637.82 -866.24 10% 5% -7%Exceptional Items 0%Stamp Duty paid on Demerger 0 25 0.00 0% 1% 0%Amortisation/ (write back) of Compensation under ESOP 7.47 -6.65 -6.73 0.05% 0% 0%Revaluation of Investments -404.03 -3%Profit on transfer of Optic Fiber Undertaking pursuant to the Scheme of Aggrangement -3,063.27 -22%Adjustments pursuant to the Scheme of Amalgamation/ Arrangement, inter alia, for merger of Reliance Gateway Net Limited into the Company Investments in Reliance Gateway Net Limited written off 2,096.43 15%Equivalent amount withdrawn from General Reserve III

-2,096.43

-15%

Adjustments pursuant to the Scheme of Arrangement, inter alia, for demerger of Optic Fiber Undertaking into Reliance Infratel LimitedLosses on account of change in exchange rate relating to loans/ liablities (net) 4,464.57 33%Equivalent amount withdrawn from General Reserve III -4,464.57 -33%

Profit/ (Loss) Before Tax and adjustments 4,815.07 619.47 -859.51 35% 5% -7%Provision for

Current Tax 0 140.54 0 0% 1% 0%Short/(Excess) provision for tax of earlier years 0 0 -101.52 0% 0% -1%

Fringe Benefit Tax 12.4 0 0 0.09% 0% 0%Profit/ (Loss) After Tax and before Adjustments 4,802.67 478.93 -757.99 35% 4% -6%Investments in Global Innovative Solutions Private Limited written off 0 0 1 0% 0% 0%Equivalent amount withdrawn from General Reserve III 0 0 -1 0% 0% 0%Profit/ (Loss) After Tax and Adjustments 4,802.67 478.93 -757.99 35% 4% -6%Add : Balance Brought Forward from Previous year 4,300.24 502.75 662.14 31% 4% 5%Amount available for Appropriations 9,102.91 981.68 -95.85 66% 8% -1%APPROPRIATIONS 0%Transferred to Debenture Redemption Reserve 6.98 74.96 0% 1%Transferred to/ (from) General Reserve III 8,400.00 40 -216.19 61% 0.32% -2%Proposed Dividend on Equity Shares 175.44 103.2 0% 1% 1%Interim Dividend on Equity Shares 165.12 1% 0%Tax on Proposed Dividend 28.06 29.14 17.14 0% 0.23% 0%Balance carried to Balance Sheet 502.75 662.14 0.00 4% 5% 0%


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COMPARITIVE RATIO ANALYSIS OF BHARTI AIRTEL LIMITED

AND RELIANCE COMMUNICATION LIMITED

Liquidity Ratio

Liquidity Ratio refers to the ability of a firm to meet its short term obligations.

(i.e. obligations that will mature within the next twelve months). Such ability

comes from holding of liquid assets which are readily convertible into

cash.CURRENT RATIO

The current ratio measures whether or not a firm has enough resources to pay itsdebts over the next 12 months. Potential creditors use this ratio in determining

whether or not to make short-term loans. The current ratio can also give a sense

of the efficiency of a company's operating cycle or its ability to turn its product

into cash. The current ratio is also known as the working capital ratio.

Current Ratio (CR) = (Current Assets/Current Liability)

Current Ratio

Company Name March '09 March '10 March '11Reliance 1.45 1.37 0.96

Airtel 0.69 0.7 0.7

Current Ratio

1.61.41.2

10.8

0.60.40.2

0March '09 March '10 March '11

Reliance 1.45 1.37 0.96

Airtel 0.69 0.7 0.7


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Interpretation:

Reliance has seen decline in the Current Ratio over the years while Airtel has

been able to maintain the same ratio for past 3 years. Reliance falling ratioaccounts for increase in Current Liability from 11.34% in 2009 to 13.07% in

2012 increase in Current liability from 9,223.37 in 2010 to 10,407.29 crores in

2011including the amount payable to subsidiary, dues to small medium

enterprises etc.

Airtel has decreased its doubtful debtors that but has increased almost same

amount of short term loans, cash and bank balances have decreased and

inventory have increased over the years. Current Liabilities have also increased

to 154,239 millions in 2011. Overall in Airtel there is a similar amount of

increase in current assets and current liabilities.

QUICK RATIO

The quick ratio is a measure of a company's ability to meet its short-term

obligations using its most liquid assets (near cash or quick assets). Quick assets

include those current assets that presumably can be quickly converted to cash at

close to their book values. The ratio tells creditors how much of the company's

short term debt can be met by selling all the company's liquid assets at very

short notice.

Quick Ratio= (Current Assets- Stock- Prepaid Expenses + Advance

Tax)/CurrentLiabilities

Quick Ratio

Company Name March '09 March '10 March '11

Reliance 2.7 2.14 1.81

Airtel 0.65 0.67 0.77


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Quick Ratio3

2.5

21.5 Reliance

1 Airtel

0.5

0March '09 March '10 March '11

Interpretation: Airtel increase in quick ratio is mainly because of increase in

short terms loans and advance given to subsidiary while Reliance has taken loan

from its subsidiaries and dues to micro and small units has also in increased

year 2011 as compared to year 2010.

CASH RATIO

Cash ratio (also called cash asset ratio) is the ratio of a company's cash and cash

equivalent assets to its total liabilities. Cash ratio is a refinement of quick ratio

and indicates the extent to which readily available funds can pay off current

liabilities. Potential creditors use this ratio as a measure of a company's liquidity

and how easily it can service debt and cover short-term liabilities.

CASH RATIO = (CASH & CASH EQUIVALENTS / CURRENT LIABILITIES)

Cash Ratio

Company Name 2008-09 2009-10 2010-11

Reliance 0.025 0.006 0.191Airtel 0.160 0.060 0.010


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Cash Ratio

0.1910.200

0.160

0.150

0.1000.060 Reliance

0.050 0.0250.006 0.010

Airtel

0.0002008-09 2009-10 2010-11

Year

Interpretation:

Cash of Airtel has decreased from 6.368% (by the end 2009) to 0.24% (by the

end of 2011) and Current Liability has also increased in past 3 years due to

which there is a decline in Cash Ratio.

Reliance has increased its Cash and Bank Balance due to which cash ratio has

increased over the period of time. But idle cash means loss of profitability to the

company.

PROFITABILITY RATIO

Profitability represents the financial performance of a company.

NET PROFIT MARGIN

It denotes overall profitability- profit from operations as well as profit/loss

from non-operating activities.

NET PROFIT MARGIN (%) = (PAT/ Net Sales)*100

Net Profit Margin(%)


Reliance 30% 3% -5%

Airtel 23% 26% 20%


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Net Profit Margin(%)35%

30%30%

26%25% 23%

20%20%

15% Reliance

10% Airtel3%

5%

0%

-5% March '09 March '10 March '11-5%

-10%

Interpretation:

Due to decrease in total income and increase in Access Charges, License Fees,

Network Expenses, Depreciation, other expenditure reliances net profit margin

has declined tremendously over the years. As far as Airtel is concerned there is

an Increase in income for service revenue from 355,861 million in the year

2009-10 to 379,924 million in the year 2010-11 but increase in license fees,

depreciation, and financial charge led to decrease in net profit margin.

OPERATING PROFIT MARGIN

Operating Profit Ratio indicates profitability from a firms main operating

activities.

A higher operating profit margin implies better sales realization and effective

cost control. Given selling price, a firm can improve operating profit margin by

reducing operating cost. Operating Cost includes manufacturing, administrative,

selling and distribution costs and depreciation.

Operating Profit Margin = (Operating Profit/Sales)*100

*Operating Profit= Sales+ Stock Adjustment-Operating Costs-Short Term


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interests

Operating Profit Margin

Company 2008-09 2009-10 2010-11Reliance 34.66% 16.18% 12.85%

Airtel 38.74% 39.08% 35.25%

Operating Profit Margin40.00%

35.00%

30.00%

25.00%

20.00% Reliance

15.00% Airtel10.00%5.00%

0.00%2008-09 2009-10 2010-11

Year

Interpretation:

Airtel has performed better in controlling their expenditure only to53% of total income in the year 2011 while Reliance expenditure has

increased from 73% of total income in 2008 to 93% of the total

income in the year 2011. Due to which operating profit margin of

reliance is decreasing and Airtel is consistent over the years.


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RETURN ON EQUITY (ROE)

Return on Equity shows return to the share holders and can be

expressed as a percentage on net worth or as an amount per unit of

shares.

Return on Equity = (Profit after Tax/Net Worth)*100

Airtel Reliance

Return on equity Return on equity

PARTICULARS 08-09 09-10 10-11 PARTICULARS 08-09 09-10 10-11

(PAT) 77438385 94262 77169 (PAT) 4802.67 478.93 -757.99

Net worth 275277472 365511 4,38,330 Net worth 51690.32 50498.89 48144.48

Return on equity 28.13% 25.79% 17.61% Return on equity 9.29% 0.95% -1.57%

*Net Worth = Shareholders fundsMiscellaneous Expenditure- Accumulated losses

Return on Equity30.00%

28.13%25.79%

25.00%17.61%

20.00%15.00%

9.29%10.00%

0.95%5.00%-1.57%

0.00%

-5.00%08-09 09-10 10-11

Reliance 9.29% 0.95% -1.57%

Airtel 28.13% 25.79% 17.61%

Axis Title

Interpretation:

Both companies has seen decline in ROE. Profit after Tax and Net wealth of

Reliance has decreased over the period of 3 years which led to the negative

return on equity in 2010-11. Similarly the Airtel has also seen decline in PAT

though there net worth has increased, still the decrease in overall percentage


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of Airtel ROE is 10.52% (28.13-17.61) % and for Reliance ROE overall decrease

is 10.86% i.e. from 9.29% to -1.57%. But Airtel has maintained positive Return

on Equity while Reliance has negative ROE at the end of 2011.

ACTIVITY RATIOS

DEBTORS TURNOVER RATIO

It represents the number of times average dues from customers are realised.

Lower debtors turnover denotes poor collection and hence would mean that

funds remain invested for longer period.

Debtors Turnover Ratio = Net Sales/ Average Debtors

Debtors Turnover Ratio


Reliance 11.72 8.42 7.18

Airtel 12.78 15.3 16.97

Debtors Turnover Ratio18

16.9716

15.314

1212.7811.72

10Reliance

8 8.427.18

6 Airtel

4

2

0

March '09 March '10 March '11

Interpretation:

Sundry Debtors of reliance has increased from 1.79% in the year 2008 to 2.47%

in the year 2010 which shows blockage of fund while Airtel has decreased its

debtors from 7.21% in the year 2008 to 4.20% in the year 2011. Similarly there


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is an increase in Airtel income while reliance has seen decrease in its total

income in the year 2010-11 as compared to the year 2008-09. Due to which

Airtel is performing better in Debtors Turnover Ratio.

WORKING CAPITAL TURNOVER RATIO

The working capital turnover ratio is used to analyze the relationship between

the money used to fund operations and the sales generated from these

operations. In a general sense, the higher the working capital turnover, the better

because it means that the company is generating a lot of sales compared to the

money it uses to fund the sales.

WORKING CAPITAL TURNOVER RATIO = Net Sales / Net Working Capital

Working Capital Turnover Ratio

Company Name 2008-09 2009-10 2010-11

Reliance 0.85 1.16 1.44

Airtel -7.86 -9.85 -15.36

Working Capital Turnover4.00

0.85 1.16 1.442.000.00

-2.00 2008-09 2009-10 2010-11-4.00-6.00 -7.86

Reliance-8.00 -9.85

-10.00

Airtel

-12.00-15.36

-14.00-16.00-18.00

Year

Interpretation

The fact that net working capital of airtel is in negative there working Capital

Ratio is also negative. Increase in revenue for reliance has improved its working

capital


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FIXED ASSETS TURNOVER RATIO

Fixed Assets Turnover Ratio shows the productivity of fixed assets. It measures

the sales revenue per rupee of fixed assets. A fixed ratio of 2 indicates that a

rupee of fixed assets has generated sales of Rs. 2.

Fixed Assets Turnover Ratio=Sales/ [Net block + Capital WIP]

Fixed Asset Turnover

Company Name 08-09 09-10 10-11

Reliance 0.39 0.39 0.33

Airtel 1.23 1.2 0.81

Fixed Assets Turnover

1.4 1.23 1.2

1.2

0.811

0.8

0.6 Reliance0.39 0.39 0.330.4

Airtel

0.20

08-09 09-10 10-11

Year

Interpretation

Airtel has generated Rs 0.81 of sales from a rupee of fixed assets but they have

purchased new assets due to which there has been a decline in year 2011 as

compare year 2010 while Reliance has generated Rs 0.33 of sales from a rupee

of fixed assets they also have bought new assets and increased their investment

in Capital work in progress.

LEVERAGE RATIOS

DEBT-EQUITY RATIO

Debt-Equity Ratio shows the mix of debt and equity used. Higher the ratio,


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larger will be the loan component.

Debt-Equity Ratio (D/E) = (Longterm debt/Equity)

*Equity = Share capital+ Reserves and surplusMiscellaneous Expenditure-Accumulated Loses

Debt-Equity


Reliance 0.6 0.48 0.65

Airtel 0.28 0.14 0.27

Debt-Equity

0.7 0.6

0.65

0.60.48

0.5

0.40.28 0.27

Reliance

0.3 Airtel

0.2 0.14

0.1

0

March '09 March '10 March '11

Interpretation:

Reliance has taken secured loans of 12000 crore in the year 2010-11 and used

its reserves and surplus to write off its investment in Reliance Gateway Net

Limited due to which its debt portion has increased while Airtel has been

successfully able to decrease its secured and unsecured loan over the period of 3

years due to which it has less debt component in its capital structure as

compared to Reliance

INTEREST COVERAGE RATIO (ICR)

If Interest Coverage Ratio is less than one, it implies that a firm has negative

PAT. The entity could not earn sufficient profit to service the interest on loan in

full. It reflects poor solvency ratio.


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Interest Coverage Ratio= (PAT + Interest)/Interest

Interest Coverage Ratio

Company Name 08-09 09-10 10-11

Reliance 5.98 1.43 -0.13

Airtel 71.86 88.85 78.56

Interest Coverage Ratio

100 88.85

9071.86

78.56

80

70

60

50

40 Reliance

30Airtel

20 5.981.4310 -0.13

0

-10 08-09 09-10 10-11

Year

Interpretation:

Reliance declining Interest Coverage ratio accounts for increase in expenses

which is 93% of total income by the end of March 2011, due to which its PAT

is negative.

Airtel have generated enough profit to meet the interest payments over the

period of 3 years.

DEBT RATIO

Debt ratio is a ratio that indicates the proportion of a company's debt to its total

assets. It shows how much the company relies on debt to finance assets. Thedebt ratio gives users a quick measure of the amount of debt that the company


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has on its balance sheets compared to its assets. The higher the ratio, the greater

the risk associated with the firm's operation. A low debt ratio indicates

conservative financing with an opportunity to borrow in the future at no

significant risk.

Debt Ratio = Total Debt / Total Assets

Debt Ratio

Company Name 08-09 09-10 10-11

Reliance 0.37 0.33 0.4

Airtel 0.22 0.12 0.21

Debt Ratio

0.370.4

0.4 0.330.350.3

0.22 0.210.250.2

0.12 Reliance0.150.1 Airtel

0.050

08-09 09-10 10-11

Year

Interpretation:

Reliance has taken more secured loans of 12000 crores from the market in the

year 2011 due to which there is an increase in debt ratio. Airtel has decreased its

secured loan but has taken unsecured loans from the market due to which there

is a increase in debt ratio but it is still less as compared to reliance.


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5.1CONCLUSIONS AND RECOMMENDATION

Matrix Cellular International Services Ltd. (MCIS) is the leading company in

India to provide international country specific sim cards to customers who flyabroad.

The company is growing rapidly as more and more people are flying abroad

every year either due to education or work or for leisure purposes. The company

is investing a lot in order to grow by putting its efforts to build a technology

driven and consumer focused.

In research it has been seen that Matrix Cellular services is an excellent service

provider and very cheap also when compared to International Roaming costs

one has to bear through service providers like Vodafone, Airtel, Etc.

The reason for people who opt for Matrixs Services is the low cost and good

connectivity along with convenience and the ease of availing the service and the

settlement of the bill. The process being entirely automated it creates a positive

impact on the customer.

Matrix was not know as a brand earlier. But now MATRIX is a very well

known brand name because of its advertisement in newspapers, media

campaigns and also after sponsoring KKR team in IPL, to increase the brand

visibility and sales matrix need to continue the same.


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5.1 REFERENCE

For the purpose of preparation of the project and giving it the valuable also, ahelping hand is taken from the most precious reserve of knowledge i.e. the

books and internet.

Encyclopedia Article:

Wikipedia Advertising (http://en.wikipedia.org/wiki/Advertising)

Wikipedia Public Relationship(http://en.wikipedia.org/wiki/Public_relations)

Website URLs :

http://www.matrix.in/

https://www.airtel.in/

http://www.rcom.co.in/Rcom/aboutus/ir/ir_financials.html

http://www.ipl.com/ http://www.trai.gov.in/

http://in.ask.com/web?l=sem&ifr=1&qsrc=999&ad=semA&an=google_s&q=foreign%20curr

ency&siteid=3339&o=3339&ar uid=B2949347-A4CB-47E2-A905-
http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://www.matrix.in/http://www.matrix.in/https://www.airtel.in/https://www.airtel.in/http://www.rcom.co.in/Rcom/aboutus/ir/ir_financials.htmlhttp://www.rcom.co.in/Rcom/aboutus/ir/ir_financials.htmlhttp://www.ipl.com/http://www.ipl.com/http://www.trai.gov.in/http://www.trai.gov.in/http://in.ask.com/web?l=sem&ifr=1&qsrc=999&ad=semA&an=google_s&q=foreign%20currency&siteid=3339&o=3339&ar_uid=B2949347-A4CB-47E2-A905-24165FB15250&click_id=C27B75F7-0EAC-4509-A863-3D0CC161F3A0http://in.ask.com/web?l=sem&ifr=1&qsrc=999&ad=semA&an=google_s&q=foreign%20currency&siteid=3339&o=3339&ar_uid=B2949347-A4CB-47E2-A905-24165FB15250&click_id=C27B75F7-0EAC-4509-A863-3D0CC161F3A0http://in.ask.com/web?l=sem&ifr=1&qsrc=999&ad=semA&an=google_s&q=foreign%20currency&siteid=3339&o=3339&ar_uid=B2949347-A4CB-47E2-A905-24165FB15250&click_id=C27B75F7-0EAC-4509-A863-3D0CC161F3A0http://in.ask.com/web?l=sem&ifr=1&qsrc=999&ad=semA&an=google_s&q=foreign%20currency&siteid=3339&o=3339&ar_uid=B2949347-A4CB-47E2-A905-24165FB15250&click_id=C27B75F7-0EAC-4509-A863-3D0CC161F3A0http://in.ask.com/web?l=sem&ifr=1&qsrc=999&ad=semA&an=google_s&q=foreign%20currency&siteid=3339&o=3339&ar_uid=B2949347-A4CB-47E2-A905-24165FB15250&click_id=C27B75F7-0EAC-4509-A863-3D0CC161F3A0http://in.ask.com/web?l=sem&ifr=1&qsrc=999&ad=semA&an=google_s&q=foreign%20currency&siteid=3339&o=3339&ar_uid=B2949347-A4CB-47E2-A905-24165FB15250&click_id=C27B75F7-0EAC-4509-A863-3D0CC161F3A0http://www.trai.gov.in/http://www.ipl.com/http://www.rcom.co.in/Rcom/aboutus/ir/ir_financials.htmlhttps://www.airtel.in/http://www.matrix.in/http://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Advertising

&the analysis of impact of media campaigns and sponsorship on sales and visibility of brands - copy

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