a project on business development, swot analysis and

A Project On Business Development, SWOT Analysis and Customer Retention activities in

existing Potential within a limited territory At Reliance Communication,Pune

Dr S Praveen Kumar 1, MD Sajid

2

Professor and Head 1, Student

2, Department of Management Studies

1,2

BIST, BIHER, Bharath University, Chennai

[email protected]

(1) CONCEPT OF RELIANCE COMMUNICATION

“My vision is to provide the latest telecommunication facilities to every Indian at the

price of a post card” – Dhirubhai Ambani.

Reliance Infocomm was launched as a very ambitious project. The project was conceived

at the convergence of communication and information technology. It was designed to connect

every home and office in India with each other and the world[1-6].

On Thursday, August 09, 2007

Anil Ambani has chosen as “ Telecom person of the year 2007 “

His marketing strategy has made millions of Indians happy, they got the best mobile

tariffs in the world-local call costs at 15 paise/minute, and STD call at 40 paise/minute .

NEW DELHI, INDIA: When the VOICE&DATA jury, comprising eminent professionals

from the telecom field, met in Delhi in June to choose the Telecom Person of the Year 2007, the

five-hour selection process was steamy.

The reason was obvious: The telecom sector is growing faster than any other segment and

naturally their CEOs have a lot to crow about[7-12]. The jury had to select one from three CEOs,

who had made it to the final list through nominations from the industry and the initial scrutiny.

Among the three, one of the main contenders was a young CEO. The jury decided that he should

come back next year to try and win the coveted award. The list now had two names-both CEOs

International Journal of Pure and Applied MathematicsVolume 119 No. 12 2018, 5843-5864ISSN: 1314-3395 (on-line version)url: http://www.ijpam.euSpecial Issue ijpam.eu

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of two well-known companies. The pivotal difference between the two: one is an entrepreneur

and the other is not so popular[13-15], as his credit is shared among a number of his big daddies.

Following a five-hour closely held, hotly debated discussion, the name was announced:

Anil Dhirubhai Ambani, chairman of Reliance Communications. Anil Ambani joined Reliance

Industries (currently promoted by his brother Mukesh Ambani, following their split) in 1983 as

co-chief executive officer. Forbes ranked him number 104 among the World's Richest People in

2006. The Ambani family faced criticism when it announced its ambitious plans to build a

countrywide telecom network, as its prior expertise lay in commodities-textiles and

petrochemicals-business only. Apart from that telecom needs a service-oriented mindset, critics

felt. What they did not remember was how the family had served its millions of shareholders[16-

18].

Policies in India are made in line with Ambani's vision, says an industry expert. His

business acumen and closeness to politicians assisted him in making it to the Rajya Sabha in

June 2004, as an independent member. Ambani chose to resign voluntarily on March 25, 2006.

The same association with politicos gave him negative returns too when the Mayawati

Government in Uttar Pradesh put a spanner on his ambitious plans to build a 1,200-acre SEZ.

Media sees his aggression when he announces financial results for the Reliance ADA

group of companies, and when he attends the annual general meetings and faces questions from

shareholders. When he meets the press, he has answers to all their questions. He also remembers

to call select journalists by name[19-23].

To merchant bankers he, who has already contributed immensely to the financial reforms

of the country, is one of the financial wizards of the world. May be because of his expertise, he

gave up in the race to grab Hutchison Essar stake, after indirectly jacking up the valuation. His

negotiations with the Qualcomm chief are also a folk theory now.

How did Ambani become the VOICE & DATA Telecom Person of the Year 2007? What

are his personal and organizational achievements in the recent past?

International Journal of Pure and Applied Mathematics Special Issue

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His path-breaking marketing strategy that was put in by the strongest team of telecom

professionals the country has ever seen has made millions of Indians happy as they got the best

mobile tariffs in the world[29-31]. The aggression resulted to adding to his already swollen kitty.

Every hour India will be adding around 20,000 new mobile customers and Reliance

Communications over 4,000. When mobile telephony first began in India, a local call cost Rs 16

per minute; an STD Rs 50; and a call to the US Rs 100 per minute. With Reliance

Communication’s pioneering price initiative, a local call now costs a mere 15 paise per minute,

STD 40 paise, and a call to the US costs less than Rs 2 per minute. The presence of Reliance

Communications is making the competition in India panicky. Global telecom forces will also

shortly start feeling the heat. Ambani has also recently announced his Rs 1,200 crore buyout of

Yipes Holdings[24-28].

Achiever's Pride

Undertook financial restructuring of Reliance communications

To spend Rs 16,000 crore to expand and strengthen network coverage

After expansion, Reliance Communications will have the single largest wireless network

in the world

Launched the lowest-cost classic brand handset at Rs 777

Subscriber base grew to over 28 mn during last fiscal, registering 60% growth

Total Revenue shot up to Rs 14,468 crore, an increase of 34%

Net Profit rises to Rs 3,163 crore, an increase of over 600%

Revenues of the wireless business increased by 46% to Rs 10,728 crore

Broadband achieved revenue growth of 123% to Rs 1,144 crore

Market capitalization crossed Rs 110,000 crore

Will add 23,000 more towers

Telecom services will be available in over 23,000+ towns and 600,000+ villages

Next generation DTH network will be launched before end of the year

No. 1 One GSM Network in India according to the Brand equity Survey 2009

India’s Most Trusted Service Brand according to the Brand Equity Survery 2009


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Reliance Communications' wireless subscriber base grew to over 28 mn last fiscal,

registering a 60% growth. This makes it one of the top five wireless operators in India.

"Economic growth in the future will be indexed to connectivity of millions of enterprise and

individual customers. Over the next few years, we will have over 100 million customers, making

us one of the top 5 telecom players in the world. In four years, we put up a total of 14,000 towers

across the country. This year alone we will add 23,000 more towers. Our wireless network is

currently available in 10,000 towns. By the end of this year, it will be available in over 23,000

towns and 600,000 villages," Anil Ambani said at the first annual general meeting of Reliance

Communications since the re-organization of the Reliance Group in June 2005.

"In four years of operations, we invested around Rs 32,000 crore. This year alone we will

invest over Rs 20,000 crore. At the end of this year, we will have covered over 90% of our

population. If Version 1.0 of the Indian telecom story was all about affordability, Version 2.0

will be about reach. Our Network expansion will give us the power to drive the market and stay

ahead of the curve," Ambani adds[32-35].

According to Ambani, the financial restructuring of Reliance Communications is the biggest

turnaround story in the history of corporate India. The inherited ownership structure of Reliance

Communications was complex. The reorganization has yielded a simple, fair, and transparent

ownership structure, and given Reliance Communications 100% ownership of all operational and

associate companies.

Reliance Communications is now among the three most valuable private sector companies in

India, and the five most valuable telecom companies in Asia. In the current

Fiscal, Reliance Communications will spend Rs 16,000 crore to further expand and

strengthen its network coverage across India and the rest of the world.

In addition to organic growth, Reliance Communications will leverage the advantages

derived from this impressive financial platform to explore and pursue any significant


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Opportunities available in the telecommunications sector. "We are currently evaluating a

number of inorganic opportunities in select international markets to further expand our

footprint," Ambani said.

Reliance Communication’s One India, One Tariff plan allowed millions to connect across

India at just one rupee a minute. The company was the first one to break the Rs 1,000 entry-

barrier with the launch of the lowest-cost classic brand handset at Rs 777.

As per its expansion plan, Reliance Communications will have the single largest wireless

network in the world, covering over 950 mn Indians or more than 5% of the global population. It

will cover 23,300 towns or every single Indian habitation with a population of over 1,000.

Reliance Communications will cover almost 100% of all rail routes, providing seamless voice,

video, radio, and Internet connectivity to 14 mn commuters every day. It will also cover almost

100% of all national highways, and 84% of all state highways, giving millions of users the power

to talk, text, surf, play, chat or simply stay in touch across nearly the entire length of India's

2,00,000-km-long road network[36].

Having achieved tremendous growth, the main challenge for Reliance Communications is to

improve quality of service and ARPU. Its enterprise business is also not in a position to compete

with the global majors. Stock market valuations may boost the fortunes of an entrepreneur, but

Ambani needs to address the issues faced by the growing mobile customer base, especially in

India, where bureaucracy takes pride in checking the businessman.

(1) OBJECTIVE :- How to achieve customer retention and increase the Sales within the

limited territory within the existing potential.

(2) INTRODUCTION OF THE TOPIC:-

Marketing Strategy

Customer Generation - Tapping in to Internal Resources

Employee base of more than 50,000 and a shareholder base of about 3.3 million

was the best place to start as far as customers

Every employee was offered 10 connections at a discounted rate.

Dhirubhai Ambani Entrepreneurship Program – A New Way to Market.


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Reliance Infocomm fostered a new breed of entrepreneurs, as channel partners.

Aim of enrolling 200,000 individuals who are committed to acquiring new

customers and creating a new experience for them.

Advertising – Educating Masses and Evoking Passions

The Reliance mobile brand was branded as India Mobile to cash in on patriotic

feelings

The main theme of the first campaign built on the vision of Reliance Infocomm in

bringing the power of telecommunications to every person

This campaign helped to educate people on the importance of telecommunication

services.

The next set of campaigns talked about the innovative product features which

differentiated Reliance Infocomm from its competitors.

The advertisements announced that Reliance IndiaMobile was 'Kabhi mobile,

kabhi computer' (Sometimes Mobile, Sometimes Computer).

In the subsequent campaigns Reliance started riding on movies and cricket as

themes.

Use of Intensive Media Advertising after launching every new and innovative

product.

(1) RESEARCH PROBLEM

Collection of Customer Data of other companies –Tata Indicom, Airtel & BSNL

Sales associates and Sales Executive sometime gives wrong data

Limitation of time and money[37-41]

(2)RESEARCH OBJECTIVE

To Retain the customer and increase the potential within the limited territory

To understand the reason of negative churn.

To analyze the current perception of RCom with respect to other companies.

(3) SUB OBJECTIVE

To know the demand of Rcom Broadband in as the demand of RCom Broadband

declining in the market

To help in development and need of new product

To identify the company position among competitors


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To determine those factors which persuade Customers to buy RCOM broadband

products.

To find out which type of schemes customer prefer and why?

(4) INFORMATION REQUIREMENT

Complete Price structure of Rcom, Airtel & Tata Indicom offer which includes:

Installation and Processing Fees

Discount Offered

Schemes offered

Service Tax

(5) SOURCES OF INFORMATION

Data collected from the Company

Secondary Data

Internet

Sales Associates

Sales Executives

Other Trainees (Runner)

(6) SCHEMES, PRODUCTS

RELIANCE PRODUCT

Reliance Broad Band

Reliance Fixed Line Phone

Reliance Mobile

Reliance Data Card

Reliance Voucher, E-Recharge

Reliance PCO

(7) FIELD WORK

1. Marketing visiting & Survey (05/06/2010 to 20/06/2010)

2. 2.Approach for new customers (21/06/2010 to 05/07/2010)

MARKETING VISITING & SURVEY – 5st June was my first day of summer training in

Reliance communication in Pune. I met to Mr. Tasneem Siddiqui sir. He took my interview and


5849

selects me for summer training. Then he chose my mentor. Mr. Vijay Ranjan Sir who guides me

in summer training. After that I had to do my summer training under in Vijay sir.

First day I went to the Existing Customer of RCom whose connection were terminated in

recent days. Then I met to the ASM Mr. Vijay Sir and got the all information about the market

and knew that how they work and how increase the goodwill of R. Communication. They give

the regular information about current scheme & plan. We saw that there were more flexible plans

then any other subscriber in compare to the Reliance Communication.

Time of visiting to Customers I learnt all those thing how to explain in front of customer

about the plan & schemes and main thing I learnt there how to convince for accepting a big

budget schemes. We familiarized with some kinds of problems those having been Sales

Executive and Sales Associates, in his working day with customers. After finishing all the

customers I went again to the main office for reporting my work to Vijay sir. Along with all

work we had to also seen those some customers which did not keep Reliance Broadband. The

main reason through which they can’t keep the above given facilities is that they were not telling

their problem with us. For removing these problems, there was only one way that they have to

tell us their problem with us through which we can get remove that problem by informing to the

operation and maintenance department. Therefore at last I asked the problem and they shared

with us their problem. Since I was a junior therefore it was my responsibility to keep all the

problems in front of Mr. Vijay sir.

It was my marketing visiting for the 15 days which was the great experienced work for

me. In this period I learnt some kinds of idea for increasing the sale, customer retention and also

I got familiarized with those problems which generally come in the market for selling purpose.

APPROACH FOR CORPORATE OR INSTITUTIONAL CUSTOMER- I went with

Corporate SE’s to the Institutions and Corporate office and met to the HR Managers and

understand the way that how to convince the corporate customer and how to negotiate with the

plan. The plan for corporate customers are flexible and can be decided according to the need of

corporate customer and the type of service they needed. It’s a good experience for me[42-43].

APPROACH FOR NEW RETAIL CUSTOMER – In the second phase of my training I got

the target for 10 new customers in the whole area that comes under in Vijay sir. I achieved my

target within 7 days for the 10 customers new approach I moved all around the area which comes


5850

under in Mr. Vijay sir. I was having the different kinds of plans and schemes through which I

could make the new customers. Area was as follow:

Pune-Chinchwad Station, MIDC, Bhosari, Phugewadi.

I got my 100% target. It was the good achievement for me and according to Mr. Vijay sir

it was the much appreciated work which was done by me.

RESEARCH METHODOLOGY

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

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

regards to the selection of the research methodology depends on the nature of particular work,

time and resources available along with the desire level of accuracy[44-45].

Research Type Descriptive Research

Data Source Primary Data and Secondary data

Research Instrument Questionnaire design and Govt. sources

Type of QuestionnaireStructured

Population Date 443

Sample Size 100

Sampling Method Judgmental

Contact Method Personal Interview

(1) DATA INTERPRETATION OF CUSTOMER’S SURVEY

Most Influencing factor of consideration while purchasing broad band

No. of Respondent % of people

brand name 10 10

flexibility in tariff plan 40 40

price 30 30

easy availability 5 5

after sale service 10 10

others 5 5

total 100 100


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Interpretation- As shown in the graph it was found that 40% people gives most preferred option

to flexibility in plans and 30% people are price conscious, 10% people give preference to after

sales service and brand name equally.

Satisfaction level in consumer from RCom services

avg. figure Tariff plan price After sales service

Reliance 9 9 5

Airtel 7 7 8

Tata 8 8 8

BSNL 5 6 6


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Interpretation- As shown in the graph it was found that satisfaction level of customer from

Reliance communication towards tariff plan is excellent and then it isn approx. same for

airtel and tata indicom in broadband sector. BSNL has the least satisfied customer in terms

of tarrif plan.

Inter

pretation- As shown in the graph it was found that satisfaction level of customer from

Reliance communication towards Pricing is excellent and then it is approx. same for Airtel


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and Tata Indicom in broadband sector. BSNL has the least satisfied customer in terms of

pricing.

Interpretation- As shown in the graph it was found that satisfaction level of customer from

Reliance communication towards after sales serice is found worst and then it is approx. same for

airtel and tata indicom in broadband sector. BSNL has the moderate satisfied customer in terms

of after sales service.

Reliance broadband is better than any other company

Buyer Behaviour no. of respondant %of people

strongly agree 20 20

agree 38 38

neutral 19 19

disagree 18 18

strongly disagree 5 5

total 100 100


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Interpretation – It is found that Buyer readiness state for Reliance Broadband in which 20%

people are strongly agree with reliance broadband and 38% people are agree and 19% people are

neutral. 18% people are disagree and 5% people are strongly disagree.

Problem most suffered by Rcom Customer

no.of respondant %of people

Service level 40 40

Claim level 15 15

Product availability 20 20

Product awareness 25 25


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Interpretation- The most irritating problem is the poor service level between customers. 40%

customers out of 100 sample data are not satisfied with service. Then 25% customers are not able

to use current new schemes because of the unawreness about the new products. 20% customer

don’t take or retract service because of feasibility problem and 15% people are annoyed from

claim process.

Conclusion

Indian economy is an emerging one and is growing very fast at the average GDP rate 6-

8% so in this emerging market competition level among telecommunication services provides

new players are coming who will necessarily intensify the competition. New products and new

schemes are being offered by the telecom service providers[8-13]. The need for large

information capacity has grown tremendously due to the demand of real time information.

Telecommunication has now become a major information transmission system and telecom has

undoubtedly emerged as the most important industry in India. Indian telecom companies are

putting in their best offer to rope in major telecom operators of the world e.g. Vodafone, Aircel

and MTNL, Virgin etc. are playing their role in synergy with the operation of the Indian

companies. Process of acquisition and merger are in process and future will be only for those


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companies who have an edge over others in the field. The better quality of service etc. is

provided at affordable cost. In this process of competition it is assumed that only those

companies will survive who adopt suitable market strategy and technology innovation and up

gradation to suit the aspiration and demand of the consumer.

Reliance Netlink Pvt. Ltd. An Anil Ambani Group is very fast catching up with the

market by providing cheaper tariff rates. The market strategies adopted by its executives are

bearing fruits and the company has found a suitable niche and recognition in the consumer. But

this is not a thing for self contentment as the survey reveals that in network, service and

distributor, its place is very far behind to other competitors viz. Airtel, BSNL, and Tata indicom

etc. so to withstand the competition resources mobilization and technological innovation on the

part of cos. To upgrade its quality of network and services is urgently called for[13-16].

Market access and growth is alright but the improvement of quality on the above counts

is necessity of the time.

Trainee(my) finding-

Services provided by SE’s and SA’s: -

Satisfaction: -

Most of the Corporate customers i.e. around 56% of respondents are satisfied with

RComm Broadbrand, 20% of them push RCOMM brand to the customer and rest 24% retailers

are not satisfied with RComm brand due to claim pending and the bandwidth problem. The

corporate customer’s complaint don’t get entertained in time by company as easily as possible

properly.

Most of the Retail customers i.e. around 50% are dissatisfied with RCom Broadband

services , around 35% are partially satisfied with RCom Services and rest shows the averse

behavior towards the RCom brand and it is of 15% in terms of percentage.

Problems: -

Around 25% of the respondents that there is Bandwidth problem with RCom, on the other hand

they found its competitors viz. Airtel, BSNL, TATA indicom network connectivity of very good

level.

Around 40% customers found that RCom first bill of broadband is not comprehensive to them

and they are charging more. But actually it is due to the not proper communication of payment


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details and proper mentioning of bills. Hence the retail customer or intituitional customer don’t

pay bill and RCom lose the customer.

Many customers around 50% are get frustrated by its first installation time. The installation time

for Broadband is quite high and its pathetic in comparison to the other subscribers.

Support from company: -

Most of the customer says that they are not supported by the companies’ personnel &

companies’ helpline.

All companies provide POP at right time and in adequate number.

But actually customer said that the Company Personnel doesn’t communicate the Customer care

numbers as well as the relevant authority whom they can cater their complaint. Hence customer

become frustrated with their problem.

Sales Promotion budget-

Reliance Communication believes in aggressive selling but it does not look for sales promotion

and sales executive’s motivation. Hence the frontline management should be motivated by

giving attractive incentive and bonus. It is existing nowadays also but it is not lucrative.

SUGGESTIONS

On the basis of extensive study and research, here are some recommendation and suggestion

which may help the company to market the product and service more profitability and increase

its share in the Telecom market.

- Problem handling should be made easy for the customers as the procedure of handling

problem is very lengthy. Hence, customer care should direct forward the complaint to the

maintainance department and get sort out the problem.

- Customer should be recalled after confirmation of maintainace department that the

problem has been resolved or not.

- Sales executives and Sales associates should be motivated perpetually to increase the

sales and they should have been given the particular prospects to create customers.

- Sales promotion activites for big organization say industries should be opted for selling

broadband and fixed line phones at an attractive prices.


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- As the demand for reliance broadband is good hence company should go for service

excellence otherwise competitor will catch up the customers by service issue of RComm.

Hence Customer will shift to other subscribers.

- I have analyzed that the customer complaint is not entertained as they desires hence

customer should be cater and confirmed by telecalling about the problem and satisfaction.

(1) Promotional Activities

The company expand the budget allocation for promotional campaign for sales

executives and sales associates because these are the people are actually responsible for actual

sales and revenue. It has affected the sale service brand image of Reliance especially in Pune.

Low supports in promotion have lead to fluctuation in sale. As Pune and other metro cities

requires more money for survival at lower management level. Hence hike in salary or some

motivational incentives should be given to SE’s and SA’s.

(2)Advertising –

Advertising should have a clear objective and message, which has not been found in recent ads.

Reliance is a faster growing provider service in each state .every offers and schemes they should

show with proper message for benefit to the customer. In busy life customer do not remembered

any offers and which service we can provided for the customer therefore they should by force

showing advertisement in growing market and among customer .customers wants continuously

exposure in Cable and Local newspapers.

(3) Persuasive Advertising :-

Now there is a need of persuasive advertising for Reliance service which can be moved into the

category of “comparative advertising”. It will help the company to establish the superiority of its

brand service through specific comparison of one or more attributes and features.

(4) Technical Expertise:-

The advertisement should show the companies expertise, experience and pride in market

the product service sale.

(5) Media :-

A combination of print ads and TV commercial do a better job. Local ads and publicity

should be giving more stress. Hoardings, banners, wall painting should be promoted. Ads on

Cable network result greater audience attention. Schemes, gift offers etc. must be highlighted

through Radio and Local newspapers. BSNL and aircel are the best user of Media Services.


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(6) Sales Promotion -

Cash discount

Premiums

Appointment of sale promoter

Financial schemes

(7)Occasional Discount -

The company may go for occasional discount offers or price off from time to time

specially during any festival. Off season discount may also prove helpful to check fluctuating

sales.

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33. Prasanna, D., Arulselvi, S., Exploring gigabit switches and journaling file systems,


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34. Prasanna, D., Arulselvi, S., Collaborative configurations for wireless sensor networks

systems, International Journal of Pure and Applied Mathematics, V-116, I-15 Special

Issue, PP-577-581, 2017

35. Priya, N., Anuradha, C., Kavitha, R., Li-Fi science transmission of knowledge by way of

light, International Journal of Pure and Applied Mathematics, V-116, I-9 Special Issue,

PP-285-290, 2017

36. Priya, N., Pothumani, S., Kavitha, R., Merging of e-commerce and e-market-a novel

approach, International Journal of Pure and Applied Mathematics, V-116, I-9 Special

Issue, PP-313-316, 2017

37. Raj, R.M., Karthik, B., Effective demining based on statistical modeling for detecting

thermal infrared, International Journal of Pure and Applied Mathematics, V-116, I-20


38. Raj, R.M., Karthik, B., Energy sag mitigation for chopper, International Journal of Pure

and Applied Mathematics, V-116, I-20 Special Issue, PP-267-270, 2017

39. Raj, R.M., Karthik, B., Efficient survey in CDMA system on the basis of error revealing,


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40. Rajasulochana, P., Krishnamoorthy, P., Ramesh Babu, P., Datta, R., Innovative business

modeling towards sustainable E-Health applications, International Journal of Pharmacy

and Technology, V-4, I-4, PP-4898-4904, 2012


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41. Rama, A., Nalini, C., Shanthi, E., An iris based authentication system by eye localization,


42. Rama, A., Nalini, C., Shanthi, E., Effective collaborative target tracking in wireless

sensor networks, International Journal of Pharmacy and Technology, V-8, I-4, PP-23981-

23986, 2016

43. Pradeep, R., Vikram, C.J., Naveenchandra, P., Experimental evaluation and finite

element analysis of composite leaf spring for automotive vehicle, Middle - East Journal

of Scientific Research, V-12, I-12, PP-1750-1753, 2012

44. Ramamoorthy, R., Kanagasabai, V., Irshad Khan, S., Budget and budgetary control,


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45. Ramamoorthy, R., Kanagasabai, V., Jivandan, S., A study on training and development

process at Vantec Logistics India Pvt Ltd, International Journal of Pure and Applied



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