Reliance Communication Services and Retailer Analysis

Reliance communication
INDIAN INSTITUTE OF BUSINESS MANAGEMENT | 1
IIBM
A brief study on
“Analysis of services of Reliance Communication for Retailers
& Contribution of PRCV”
At
Reliance Communication, Kasi Palace , 6th
floor Patna
A
PROJECT REPORT
Submitted in the partial fulfillment of the requirement
FOR THE AWARD OF THE DEGREE OF
POST GRADUATE DIPLOMA IN MANAGEMENT
(Equivalent to M.B.A)
AWARDED BY
INDIAN INSTITUTE OF BUSINESS MANAGEMENT, PATNA
(An Autonomous Institute approved by All India Council for Technical
Education, Ministry of Human Resource Development, Govt. of India)
Under The guidance of :- Prof. Chdra Shekhar Dayal
Mentor in the Company :- Mr. Arvind Kumar (Cluster Head , Bihar)
Submitted by :- Abhilash
Roll no :- 16
Batch :- 2012-2014

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GUIDE CERTIFICATE
This is to certify that this project entitled (Analysis of services of
Reliance Communication for Retailers & Contribution of PRCV) is
submitted by Mr. Abhilash, Roll No. :- 16 of Post Graduate Diploma in
Management (Equivalent to M.B.A) with specialization in Marketing
Management, Session:- 2012-14 has been carried out under my
supervision and guidance.
The project is the embodiment of his compressive and meticulous study
of the subject.
His dedication and keen interest in the study is highly appreciable.
Prof. C S DAYAL
(Placement Committee Head)

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ACKNOWLEDGEMENT
I wish to express my gratitude to Reliance Communication.
Management for giving me an opportunity to be a part of their esteem
organization and enhance my knowledge by granting permission to do
summer training project under their guidance.
I am grateful to my Mentor Mr. Arvind Kumar (Cluster Head), Mr.
Dheeraj Das (Team Sales Manager) and my placement officer Sri C. S
DAYAL SIR for their invaluable guidance and cooperation during the
course of the project. He provided me with his assistance and support
whenever needed that has been instrumental in completion of this
project.
The learning during the project was immense & invaluable. My work
basically included the study of various ways for developing marketing
strategies for the company . The present report is an amalgamation of
my thoughts and my effort you study the various ways of developing the
marketing strategies for the company. Further a detailed study has been
done in order to suggest the feasible strategies that would enhance its
market share.
Summer Trainee
Abhilash

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PREFACE
The summer training programs are designed to give the practical
knowledge of corporate world. Training is usually meant for such
vacations where advanced theoretical knowledge is to be backed up by
practical experience on the job and it is because of this reason that
summer training programs are designed. So, that the future manager
must be ready to take the future responsibilities.
It was exactly in this context that I was privileged enough to join
Reliance Communication one of the biggest name in the Telecom sector.
During this period, I was appointed for the analysis of services provided
by reliance to the retailers and also look out the contribution of PRCV.In
this period I was also expected to know the retailers issues and try to sort
out them as soon as possible, and I have to try to answer their query. In
the training program I had tried my level best to arrange the work in
systematic and chronological way.
This endeavor work shall provide the Reliance marketing department an
idea about market condition and further they can work on it for bettering
the facility.

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DECLARATION
I Mr. Abhilash, a bonafide student of the INDIAN INSTITUTE OF
BUSINESS MANAGEMENT, Patna hereby declare the institutional
Training.
Report submitted by partial fulfillment of the requirements of the degree
of Masters of business Administration of the IIBM, is my original work.
Date : Name : Abhilash
Place : Patna Roll no: 16

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CONTENT
CHAPTER 1 : INTRODUCTION
: Introduction of the company.
: Overview about Reliance
: Study of organization
: Organization structure
: History of Reliance Communication in India
: Facts about Reliance Communication
CHAPTER 2 : MAIN STUDY and DATA ANALYSIS
: Research Methodology
: Objective and purpose of the study
: Analysis of problem
: Solutions
CHAPTER 3: Appendices : A- BIBLIOGRAPHY
B- Questionnaires

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CHAPTER – 1
INTRODUCTION

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INTRODUCTION OF THE COMPANANY
Reliance Communications Ltd. (commonly called RCOM) is an Indian broadband
and telecommunications company headquartered in Navi Mumbai, India. RCOM is
India's second largest telecom operator, only after Bharti Airtel. It is world's 15th
largest mobile phone operator with over 150 million subscribers. Established in
2004, it is a subsidiary of the Reliance Group. The company has five segments:
Wireless segment includes wireless operations of the company; broadband segment
includes broadband operations of the company; Global segment include national
long distance and international long distance operations of the company and the
wholesale operations of its subsidiaries; Investment segment includes investment
activities of the Group companies, and Other segment consists of the customer care
activities and direct-to-home (DTH) activities.
Major subsidiaries
Reliance Mobile Was Launched on 28th December 2002. It provides GSM &
CDMA Services. Currently Reliamce Mobile has 150 million subscribers across
India, Reliance Mobile is India’s largest mobile service brand. Reliance Mobile
services now cover over 24,000 towns, 6 lakh villages, and still counting.
GSM Reliance provides it's GSM Services Current in following 23 Telecom Circle
i.e Andhra Pradesh, Assam, Bihar & Jharkhand, Chennai, Delhi, Gujrat, Haryana,
Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Kolkata, Madhya
Pradesh & Chattisgarh, Maharashtra & Goa, Mumbai, North East, Orissa, Punjab,
Rajasthan, Tamil Nadu, Uttar Pradesh (W), Uttar Pradesh (E) & West Bengal.
Reliance also provides it's Mobile Internet Services.
3G
Reliance Hello Wireless Landline
In 2010 Reliance Launched 3G Services in 13 Telecom Circles i.e Assam, Bihar &
Jharkhand, Delhi, Himachal Pradesh, Jammu & Kashmir, Kolkata, Madhya
Pradesh & Chattisgarh, Mumbai, North East, Orissa, Punjab, Rajasthan & West
Bengal

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CDMA
Reliance Hello Wireless Landline
Reliance provides CDMA Mobile & Wireled & Wireless (Hello) Landline
Services services following 23 Telecom Circle i.e Andhra Pradesh, Assam, Bihar
& Jharkhand, Chennai, Delhi, Gujrat, Haryana, Himachal Pradesh, Jammu &
Kashmir, Karnataka, Kerala, Kolkata, Madhya Pradesh & Chattisgarh,
Maharashtra & Goa, Mumbai, North East, Orissa, Punjab, Rajasthan, Tamil Nadu,
Uttar Pradesh (W), Uttar Pradesh (E) & West Bengal.
Reliance Netconnect+
Reliance provides High Speed Wireless Internet through it's Netconnect+ CDMA
EVDO 1X Technology. Reliance Netconnect+ Plus provides Download speeds up
to 3.1 Mbps and upload speeds up to 1.8 Mbps. Currently Reliance Netconnect+ is
available 24,000 towns and 6 lacs villages, as well as along major highways,
railway routes, airport lounges and remote locations in India.
Reliance Broadband
Reliance provides High Speed Wired Broadband through Fiber Optic Cable in
major Citites, Towns & Villages across India. Reliance Broadband provides speed
more than 10MBPS.
Acquisition
FLAG Telecom
Yipes ethernet service
Digicable
Vanco

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OVERVIEW ABOUT RELIANCE
Overview
All major Telecom Service Providers…
Are large companies with national footprint.
Have invested huge amounts of monies.
Provide connectivity to end customers.
Provide plethora of services viz., Internet, VPN, leased lines, etc.
Have millions of customers across Enterprises, SMEs, SOHOs.
Yet there is a difference.
RCOM has…
Network reach
Over 800 global, regional and domestic carriers
Over 2,100 Indian and Multinational corporations
Providers of cutting edge connectivity to over 850 of top 1000
companies in India
Connecting 2.5 million individual overseas customers
190,000 kms of fiber optic connecting over 1 million building
across 44 cities with over 1.4 million access lines
9 data centre with data storage space of over 6.5 lakh sq. ft.
Scalability
RCOM uses fibre-to-the-building approach helping in creating a
network with unlimited capacity and ability to support gigabit per second
bandwidth services for customers.

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Network architecture
Architecturally the network is generations ahead of other incumbent
networks in India. A ring protected FTTB architecture that gives an enhanced
uptime.
End-to-end owned infrastructure
Only RCOM has a fully end-to-end owned infrastructure with last
mile access, nationally as well as internationally, thereby keeping things under one
control.
Integrated global player in true sense
RCOM, as a telecom player, satisfies your every telecom need, right
from a mobile connection to broadband to International leased circuit.

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STUDY OF ORGANISATION
MISSION, VISION & VALUE
MISSION
We will create world-class benchmarks by:
Meeting and exceeding Customer expectations with a segmented approach.
Establishing, re-engineering and automating Processes to make them
customer centric, efficient and effective.
Incessant offering of Products and Services that are value for money and
excite customers.
Providing a Network experience that is best in the industry.
Building Reliance into an iconic Brand which is benchmarked by others and
leads industry in Intention to Purchase and Loyalty.
Developing a professional Leadership team that inspires, nurtures talent and
propagates RCOM Values by personal example.

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VISION
By 2015, be amongst the top 3 most valued
Indian companies,
Providing Information, Communication
& Entertainment services, and being the
industry benchmark in
Customer Experience, Employee
Centricity and Innovation.

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ORGANIZATIONAL DESIGN& STRUCTURE
Organizational Design and Organizational Structure
1. Organizational Design
- management decisions and actions that result in a specific
organization structure.
Four Design Decisions
1. Division of Labor – process of dividing work into relatively
specialized jobs to achieve advantages of specialization.
Division of labor in organization can occur in three different ways:
a. Work can be divided into different personal specialties.
b. Work can be divided into different activities necessitated by
the natural sequence of the work the organization does.
c. Work can be divided along the vertical plane of an
organization.
2. Departmentalization – process in which organization is
structurally divided by combining jobs in departments according to
some shared characteristics or basis.
Some of the more widely used departmentalization bases are the
following:
a. Functional departmentalization

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b. Territorial departmentalization
c. Product departmentalization
d. Customer departmentalization
3. Span of Control – number of individual who report to a
specific manager.
Three important factors in determining the managers span of
control:
a. Required contact
b. Degree of specialization
c. Ability to communicate
4. Delegation of Authority – process of distributing authority
downward in an organization.
Decision Guidelines
a. How routine and straightforward are the job’s or unit’s
required decisions?
b. Are individuals competent to make the decision?
c. Are individuals motivated to make the decision?
d. Do the benefits of decentralization outweigh its costs?

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Organizational structure
Structure is a way an organization’s unit related to each other,
centralized , functional divisions , decentralized , a matrix , a
network , a holding etc.
 Magnasoft : The organizational structure is schematically in :
1. The detail roles and responsibilities.
2. Individual ownership of activities.
3. Individual ownership of work product.
4. Reporting structure is a mix of hierarchary and matrix
nature, ensuring effective communication.
5. Teams are continuously and timely trained on the
work domain of process , application and technology.

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Chapter 2
Main study

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Objective of the work
To know the market share of Reliance in Patna city.
Try to know the problem of retailers regarding services or product
given by the company as well as the Distributor point.
Sort out the problems by concerning to DSR, TSM, ASM or
Cluster head.
Giving full information of the plans and flow up the latest plan.
Try to motivate them for more activations.
Boost them to increase PRCV and also give awareness about the
PRCV profits.
Ensuring the visibility of the product.
Ensuring the availability of the product at the retailers point.
Retailer’s expectation from the company.

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Working Methodology
Route visit
I have been given Patna City area under Mr. Dheeraj Das TSM. I use
to visit alone in the market through my own conveyance.I he 250
retailers point.
Every morning I went to one corresponding route &observed all
techniques of selling product to retailers & also try to know the
mentality of the consumers and retailers.
I have visited following routes:
Pachim Darwaza
City chock
Hajiganj
Didarganj
Marsalani
Mathanithal
During my work I use to take 5 min interview with the retailers
and give some more time to them to understand their problem.
I was also giving time to some customers who came for the new
Sim and I avail to retain them and try to give full information
and benefits about Reliance.

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Analysis of Problems
As I have visited approx 250 retailer’s point. I have came across many
issues of retailers as well as I have got interact with reliance customers
also and I tried to know their problem also.
Retailer’s problems:
DSR do not flow up the latest plan.
Network problem (server down).
Some time activation takes long time.
Some of the Sim were activated but after few days it is gone de
activated which leads to bad good will of company as well as
retailer’s point.
Some time MNP is not successful which leads to number
deactivation.
Inner side of Marsalani which is not very much developed, some
of the retailers are their also but instead of visiting their DSR use
to tell them to submit their CAF themselves or submit to some
other retailer’s point.
Re-documentation takes time a lot.

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Customer’s problem:
Network
Deduction of balance without any reason and for
getting the deducted balance back customer should call
register the complain.(same problem to many
customers)
Plans are costly.
Reliance is not providing good quality of CDMA
handsets.
In reliance plans are activated automatically without
the knowledge of the customer and on the query of the
customer they accept the fault and pay back the money.

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As per the survey
Reasons and solution-
Reasons behind low activation percentage-
Reliance activations share shown above is
including both GSM and CDMA which is 33.3% and if we will compare
it to Uninor who is providing only GSM service is having 27.3% market
share in activation.
Following are some reasons:
On 1 Sim activation(GSM) retailer makes an FRC of 32rs in which
customers are getting
33%
16%
14%
27%
10%
Activation
Reliance (GSM & CDMA) Airtel Voda Uninor Idea

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30rs talktime,
50mb 2g data
20p R-R
30p R-O
35p STD
Plans valid for 30 days
where if we will compare with Uninor FRC plans
First they are having each FRC for 90 days
Each plan have some thing extra like free net data,U-U or U-O etc.
As per the retailers point activation don’t take a lot time.
Solution:
Increase the FRC rate upto 45-60 and give instead of giving any
balance give the customers some local R-R or R-O free usage.
Increase the Validation not for 90 but atleast for 60 days.
Now a days customers are very much conservative about the
money they want to pay whatever they incurred so instead of 20p
or 30p we should make it to 1p/sec or 1.2p/2 sec.
(Above whatever I have shown you is just a customer mindset)

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And further if we will look on CDMA we have a plan of 56 in which
customers are getting:
180 min. local call free M1-60, M2-60,M3-60.
50 MB data free
As per the customers complain in first month customer gets the 60
min but in the next or the other next month they do not get it.
Solution:
Customers are not very much happy with getting extra free
call min. in 2 or 3 month they want that at the same point for
the same month.

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Through these figure we can say that the share are equally divided, but
PRCV have not very much success as they can.
Failure reasons:
Main reason why retailers are not very much interested in
PRCV is that when they use to give it to customers,
customers are not very much familiar with recharging and
they return back it to retailers for make the procedure to
recharge through PRCV.
Retailers are having problem with defected piece.
Some of the retailers are not aware about the the
validation(they do not knowing that PRCV is having no
expiry date)that’s why they are not taking it in a big amount.
30%
18%
20%
18%
14%
PRCV
Reliace (GSM and CDMA) Airtel Voda Uninor Idea

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Retailers use to keep it in the box or in the counter which is
not visible to the customers.
Front side of PRCV
Reliance
Communication (GSM)
RS 20
Back side of PRCV
……………………….
*305* <pin no.> #
If we will see the coupons the procedures were written are
not visible to almost anybody…which creates problem for
retailers. Even the procedure are written in English and many
of the people can’t go through it because of illetracy.
Solution:
During my SIP I have flowed up a procedure pamphlet of
PRCV recharge which can help retailers to get rid of that
issue, but its not possible to flow this pamphlet to a mass
retailers.

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First company should make the PRCV slight bigger
size.
Procedure should be in Hindi and font should be large
so that customers can easily read the procedure.
For the PRCV visibility to the customers company
should provide some attractive Wall counter for PRCV,
and on that also all the PRCV plans should be given.
For cross checking whether retailers are keeping it at
their place or not DSR should look up it on regular
basis.
Because of low visibility customers are not aware about the benefits of
the PRCV.

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If we will exclude above problems. We have some more
problems below which will also shows the reason of low
market:
About plans:
If we will look up our competitors specially Uninor they are
having better plan than Reliance. Lets see some examples:
 If we will look out full talktime plans Reliance are starting
from 110 and if we will compare to Uninor they have full
talktime starting from 20.
 Uninor is giving offers like 90 in 80, 200 in 170, 410 in 340
etc.
 If we will talk about special tariff plans or combo packs
Reliance – 17rs all local/STD 40p/min. valid for 14 days
Uninor - 16rs ” valid for 30 days
Reliance- 148rs 330 local min valid for 28 days
Uninor - 35rs 6000 local sec. valid for 15 days
Reliance- 65rs 230 local onnet valid for 15 days
Uninor - 38rs 30000 local U2U valid for 30 days
Reliance- 41rs 75 STD min valid for 28 days
Uninor- 41rs 100 STD min valid for 30 days

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Here we can see the difference of some plans.
Call Quality:
 Call quality is low.
 Sometimes call disconnected in between only.
More :
 Other companies like Airtel and Aircel are giving some 2G
data free regularly for promotion of their 2G internet. As
Aircel is having better speed than Reliance if we will look up
in 2G.
 For retaining and maintain good relation with the loyal
customers we should give them some extra benefit like:
 2yr old customer should be given 100MB data or
some free min.
 3yr old customers should be given 200MB data or
some free min. etc

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CHAPTER 3: Appendices :
A- BIBLIOGRAPHY
B- QUESTIONNAIRES

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BIBLIOGRAPHY
1. Marketing Management : Philip Kotler
2.Marketing Management : S Nama Kumari
3.www.rcom.co.in
4.www.wikipedia .com

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QUESTIONAIRE
1st
sheet

Reliance Communication Services and Retailer Analysis

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