RURAL BUSINESS PERSPECTIVE

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

PRESENTED BY :
SHAILESH CHAURASIA
VSBM (2K8PGD026)

Good Afternoon and Welcome Everyone

RELIANCE COMMUNICATION- A BRIEF INTRODUCTION
• Launched on 28 Dec 2002 on the 70th birthday of DhiruBhai Ambani.

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

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

• Objective is to create values to the customers.

• Expanding GSM network apart from being the largest CDMA player.

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

• Adds a Record 5 million new subscriber in January 2009.

• Chairman: Anil DhiruBhai Ambani.

 TELECOM OVERVIEW
Market share of Market share of
GSMplayers CDMA players
RELIANCE
BHARTI
VODAFONE TATA
BSNL TELECOM
BSNL
IDEA
RELIANCE HFCL
AIRCEL
SPICE MTNL
MTNL
BPL
 DISTRIBUTION NETWORK

WAREHOUSE

CIRCLE WAREHOUSE

CLUSTER WAREHOUSE

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

RETAILER
 PROJECT INTRODUCTION

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

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

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

Cluster of U.P. East to find out:
• Demand of customers in rural market.
• Telecom operator’s monthly sales.
• Market share of telecom operators in rural market.
• Problem with Reliance sales and distribution.
• Customer acquisitions by the telecom operators.
• Reliance’s marketing campaign and its effectiveness.

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

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

Kanpur, Lucknow, Faizabad, Jhansi and Varanasi.
 RESEARCH METHODOLOGY

Research type Descriptive research (Longitudinal study)

Primary data sources Survey conducted on retailers and distributors

Secondary data sources Internet, Company website, Journals,

Magazines and Other interns

Research instruments Questionnaire and Interviews

Sampling unit Retailers and distributors (250 from each Cluster)

Sampling method Random and Judgmental

Contact method Telephonic and personal

Field work Visiting different outlet

 FEW QUESTIONS ASKED….

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

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

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

operators?

4) Which company gives you best offers and margin?

• Airtel
• Reliance
• Bsnl
• Vodafone
• Idea
• others
5) What is the frequency of direct sales executive (DSE) visit?
• Once a Week
• Twice a week
• Trice a week
• None of above

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

• Daily
• Weekly
• In 15 days
• Monthly

7) What nature of problem you face with RCOMM?

• Service level
• Claim level
• Product availability
• Product awareness
8) How much time is taken by the distributor to reimburse your claims?
• 20 days
• 30 days
• 45 days
• 60 days

9) Who are the major competitors of RCOMM?

• Airtel
• Bsnl
• Vodafone
• Idea
• Tata indico

10) How do you know about new scheme?

• By sms
• By poster
• By DSE
• Other

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

 ANALYSIS
Cluster 1: Lucknow
GSM sim sales
April May

ACQUISITION ACQUISITION

113
664 3%

10% 1667
24% 1003
27% 1397
AIRTEL 38% AIRTEL
VODA VODA
2047
IDEA IDEA
29%
RELIANCE
RELIANCE BSNL
BSNL 390
1870 10%
693 27%
10% 838
22%

In the month of APRIL acquisition share of RELIANCE is higher than other telecom operator while share of
BSNL and IDEA is least . In the month of MAY acquisition share of AIRTEL is higher than other telecom
operator while share of BSNL is least among all the GSM operators. So, for this cluster customer acquisition of
RELIANCE is higher in th month of APRIL but for the month of MAY customer acquisition of AIRTEL is higher
 Cluster 2: Kanpur

GSM sim sales

April May
ACQUIZATION ACQUISITION

500
633 6%
7%
2404
1770 30%
3159
2084 22%
34% AIRTEL AIRTEL
23%
VODA
VODA
IDEA
IDEA
RELIANCE
RELIANCE BSNL
BSNL

1572 1745 1575

17% 1802 22% 20%
19%

In the month of APRIL acquisition share of AIRTEL is higher than other telecom operator while share of BSNL is
least .In the month of MAY acquisition share of AIRTEL is higher than other telecom operator while share of
BSNL is least among all the GSM operators. So, for this cluster growth of AIRTEL is higher than other telecom
operator.
 KEY FINDINGS
• Reliance GSM has become threat for its competitors in rural market.

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

• Airtel is leader in rural market.

•Rural India will account for around 35-38% of the total mobile handset sales
by 2010.

• No coordination between sales executive, retailers and distribution of Reliance

Communication.

• Insufficient stocks are provided to the distributors of company.

• Network and Connectivity of the the newly launched GSM service is not up to
the mark.
 SUGGESTION
• Company has to work on improving network and connectivity.

• Company should give more stock to distributors.

• Company should provide better distribution channel.

• Sales person should visit retailer more frequently.

• Company should adopt flexible pricing Mechanism to overcome competition.

• Company should shift to new technology such as 3G.

• Company should focus on untapped rural market.

 CONLUSION
• Rural markets in India constitute a wide and untapped market for many
products and services which are being marketed for the urban masses.

• Rural tele-density is very poor and can be improved only through the
introduction of modern and suitable technology along with participation from the
private operators.

• Mobile phone ownership in India is growing rapidly, six million new mobile
subscriptions are added each month.

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

• Now, Every operator are concentrating on rural market due to very low mobile
penetration.
 LEARNING EXPERIENCES

• Types of sign board and their placing.

• Hoarding and their placing.

• Outdoor advertisement.

• Canopy activity.

• Rural advertisement.