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    ALKESH DINESH MODY INSTITUTE FOR

    FINANCIAL & MANAGEMENT STUDIES

    RURAL MA RKETING

    TOPIC: RELIANCE MOBILES

    PROF: SUSHMITA MUKHERJI

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    CLASS: SY.B.M.S A

    GROUP MEMBERS

    NAMEROLLNO

    ASHWATI BHASI 05

    SONALI CHAUHAN 13

    KRITY DUBAL 21

    KOMAL JAIN 39

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    NEHA KAZI 51

    KIMAYA KULKARNI 58

    RURAL MARKETING

    Rural marketing means marketing activities in the rural

    areas where favorable infrastructure may not be

    available. the study of rural market comprising of all

    operations, which starts with a decision to produce a

    saleable farm commodity and involves in the movementof farm produced food, raw materials and their

    derivatives such as textiles from the farms to the final

    consumers and the effect of such operations on

    producers, middlemen and consumers.

    THE VARIOUS PROBLEMS FACED BY COMPANIES IN

    RURAL MARKET

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    A firm planning to venture into rural areas face lack of

    infrastructure facilities. The major marketing problems

    are

    a.The agricultural technology has tried to develop the

    market in the rural areas. Unfortunately, the impact

    of technology is not felt uniformly thought the

    country.b.Many parts in rural India have only kacha road and

    many parts of the rural interiors are totally

    connected by the roads. The most common mode of

    carriers is the animal drawn cart. Because of these

    problems in accessibility, delivery of products and

    services continue to be difficult in the rural areas.

    c.The number of languages and dialects vary from

    state to state, region to region and probably from

    district to district.

    d.The number of villages in India is more than five

    lakhs. And they are not uniform in size. This type ofdistribution of population warrants appropriate

    strategies.

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    e.There is a problem of availability of suitable dealers in

    rural area.

    A mobile revolution in rural India

    The total mobile penetration may have reached 14 per

    cent of India's population. However, industry expertsassert 13 per cent of this is in urban centers and only one

    per cent in villages.

    The opportunity is not lost on market players like Bharat

    Sanchar Nigam Limited and Reliance Communications

    who have been present in this segment for a while.

    Now Hutchison Telecom, Bharti Airtel and Tata

    Teleservices too have descended on the turf with big

    network expansion plans and innovative marketing

    strategies specially tailored for these regions.

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    Reliance Communications will also make investments to

    the tune of Rs 1,500 crore (Rs 15 billion) till March 2007

    to enhance its network in the eight global system for

    mobile communication circles it operates in.

    The company plans to extend its GSM network to 4,000

    towns in the existing circles of Bihar, Orissa, West Bengal

    , Himachal Pradesh , Assam, north east, Madhya Pradesh

    and Kolkata . Currently, its GSM network covers 340

    towns in these circles.

    "Rural India is keen on high feature phones but not as

    much as urban India. A customer in the rural area is

    happy to have features, which are available in the urban

    markets. They are happy to have colour handsets, otheraccessories like phone book wherein he can store details

    of contacts, games, alarm tones and so on,"

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    History of reliance communication

    The Late Dhirubhai Ambani dreamt of a digital India an

    India where the common man would have access to

    affordable means of information and communication.

    Dhirubhai, who single-handedly built Indias largest

    private sector company virtually from scratch, had stated

    as early as 1999: Make the tools of information and

    communication available to people at an affordable cost.

    They will overcome the handicaps of illiteracy and lack of

    mobility.

    It was with this belief in mind that Reliance

    Communications (formerly Reliance Infocomm) startedlaying 60,000 route kilometers of a pan-India fibre optic

    backbone. This backbone was commissioned on 28

    December 2002, the auspicious occasion of Dhirubhais

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    70th birthday, though sadly after his unexpected demise

    on 6 July 2002.

    Reliance Communications has a reliable, high-capacity,integrated (both wireless and wireline) and convergent

    (voice, data and video) digital network. It is capable of

    delivering a range of services spanning the entire

    infocomm (information and communication) value chain,

    including infrastructure and services for enterprises as

    well as individuals, applications, and consulting.

    Today, Reliance Communications is revolutionising the

    way India communicates and networks, truly bringing

    about a new way of life.

    How Anil Ambani plans to woo ruralIndia

    If you thought customers in semi-urban and rural

    markets were using mobile phones only to make calls,

    think again. If Reliance Communications Ventures Ltd is

    to be believed, this is a myth, which has been broken.

    Much to its surprise, the company realized that a sizeable

    portion of its customers in the towns and villages of the

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    Bimaru (Bihar, Madhya Pradesh , Rajasthan and Uttar

    Pradesh states were using cell phones to log on to the

    Net, stream video clippings and for infotainment.

    GSM companies might be concentrating only on voice

    revenues in their quest to address the rural markets.

    Reliance, however, is banking on data and video to do

    the magic. Not that it is giving up on voice. It only means

    that the company is increasingly expecting a large part of

    the revenue to come from data. This is the key plank of

    Reliance's big new push into the hinterland of the

    country.

    MARKETING STRATEGIES USED BY RELIANCE

    Reliance Mobile haslaunched a job search service on R-

    World, its VAS offering. The service would be available

    pan-India and is launched in tie-up withBabajob. The

    service would be available in five languages namely

    Hindi, Telugu, Kannada, Tamil and English.

    The company through this service wants to target

    employees which avoid going online for searching jobs.

    The service provides employers a way to target offline

    http://telecomtalk.info/reliance-mobile-unveils-job-search/9674/http://telecomtalk.info/reliance-mobile-unveils-job-search/9674/http://telecomtalk.info/reliance-mobile-unveils-job-search/9674/http://www.babajob.com/http://www.babajob.com/http://www.babajob.com/http://telecomtalk.info/reliance-mobile-unveils-job-search/9674/http://telecomtalk.info/reliance-mobile-unveils-job-search/9674/http://telecomtalk.info/reliance-mobile-unveils-job-search/9674/
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    job seekers and thus could see more uses from tier-iii

    cities and rural employees jumping on to the service.

    The service would majorly see blue-collared jobssearches in rural market and urban market whereas less

    experienced white collar employees could also frequent

    the service. As far as Online recruitment portals are

    concerned majority number of people access the service

    in India but the less experienced one to an extent avoid

    going for same as mostly jobs listed on these job portals

    are for highly experienced employees.

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    Babajob has beentying up with different telcos for job

    search market and has penetrated very well in already

    Crowded Online recruitment segment. The reliance

    service should also have added job posting feature so as

    to attract SMEs and unorganized market players to the

    VAS recruitment services. The challenges and complexity

    of recruitment process still requires much more

    simplification in India.

    http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/Airtel-launches-blue-collar-job-search-services-on-mobile/articleshow/4697507.cmshttp://economictimes.indiatimes.com/News/News-By-Industry/Telecom/Airtel-launches-blue-collar-job-search-services-on-mobile/articleshow/4697507.cmshttp://economictimes.indiatimes.com/News/News-By-Industry/Telecom/Airtel-launches-blue-collar-job-search-services-on-mobile/articleshow/4697507.cms
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    Rel iance Commun icat ion Announces

    Mobi le App Con test

    Now Reliance communication is running a nationwide

    contest for developing rural mobile applications.

    Contestants/Developers will have to create applications

    which suit the rural mobile market and will focus ontransportation, m-commerce, health care services,

    governance, education, information, and location-based

    services.

    Developers can submit applications for WAP, Java,

    Reliance Java, Brew, Brew Lite, Symbian, and VoxML

    environments. The criteria for judging will be user

    interface, innovativeness, functionality, and business

    potential.

    http://www.watblog.com/2007/11/16/reliance-communication-announces-mobile-app-contest/http://www.watblog.com/2007/11/16/reliance-communication-announces-mobile-app-contest/http://www.mobilepundit.com/2007/11/12/rural-mobile-application-contest/http://www.mobilepundit.com/2007/11/12/rural-mobile-application-contest/http://www.watblog.com/2007/11/16/reliance-communication-announces-mobile-app-contest/http://www.watblog.com/2007/11/16/reliance-communication-announces-mobile-app-contest/
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    sThis move has been done keeping mind the 600,000

    villages which Rcom feels will cover by March 2008.

    The Contest is open to all Software professionals,

    Software Developers, Companies, Students, self

    `vendor,Aggregators.

    KRIBHCO and Reliance Communications

    Infrastructure forge Rural Marketing Joint Venture

    About KRIBHCO

    Krishak Bharati Cooperative Limited (KRIBHCO) the worldpremier fertilizers producing cooperative has an

    outstanding track record to its credit in all spheres its

    activities. Incorporated in April, 1980 as a national level

    cooperative society to manufacture and distribute

    chemical fertilizer and allied farm inputs, KRIBHCO has

    fully imbibed the cooperative philosophy and has made

    sustain efforts towards promoting the cause of modern

    agriculture and cooperatives in the country. Having its

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    genesis in farmers cooperatives, social development and

    humane facts have always been of prime focus it its

    growth and philosophy an organization which owes its

    existence to the farmers, by the farmers and for the

    farmers of this great country. KRIBHCO has been

    marketing its product i.e. Urea, Bio-Fertilisers, Seeds

    through cooperatives and institutional Agencies. Besides,

    providing its products to Apex Level cooperative

    Federations / Institutions in most of the states.

    KRIBHCO Reliance Kisan Limited, Joint Venture Company

    would create a first-of-its-kind distribution model

    covering 72% of Indian population through its network ofover 25,000 cooperatives, 6300 member cooperatives

    and 60 Krishi Seva Kendras spread across the length

    and breadth of the country. The unique distribution

    model created by the Joint Venture Company would

    distribute a range of telecom and non-telecom services

    sto bridge the Urban-Rural divide.

    Bridging the Urban Rural Digital Divide has been

    among the fundamental reasons for inception of Reliance

    Communications. Over the last few years Reliance ADA

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    Group has achieved significant success in making

    telephony available and affordable to millions of Indians

    living in rural are

    SWOT Analysis

    Strengths

    Mobile Communications Arm of a Large, Well-Funded,

    Well-Connected and Ambitious Indian Conglomerate

    Economies of Scale From Large Subscriber Base

    Expertise in a Business Model That Allows It to Maintain

    High Profitability From Lower-Yielding Subscribers

    Weaknesses

    Cost Structure Disadvantage With Subscribers Spread

    Across Two Different Mobile Networks

    Low ARPU Compared With CompetitorsWeakness in Rural Markets

    Brand Positioning

    Limited Availability of Value-Added Services

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    Opportunities

    Aggressive Move Into the Rural MarketUse Upcoming Mobile Number Portability as \"Launching

    Pad\" to Grab Market Share of Higher ARPU Users and

    Ramp Up Focus on Data Revenue

    Overseas Investments

    Lease Spare Capacity on Its CDMA Network to Mobile

    Virtual Network Operators

    Threats

    Quicker Than Expected Slowing of Growth in the Indian

    Marketplace

    Mobile Number Portability Risks Accelerating Churn ofSubscribers From CDMA to GSM

    New Competitors