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30/07/2010 Pandya Nikita - 09MBA019 1 Presented By :- “Increase penetration & revenue of VAS through CRBT “ Nikita Pandya -09MBA019 Indus Institute of Technology & engineering 2009-2011 July , 2010

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30/07/2010 Pandya Nikita - 09MBA019 2 Flow of the Presentation. 1 ) Introduction of Telecom Industry Introduction of Reliance Communication Players of Indian Telecomm Industry Analysis of Reliance Telecommunication Project Finding Research Methodology & Analysis Hypothesis Recommendation & Suggestions Overall Experience & Learning

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30/07/2010 Pandya Nikita - 09MBA019 3 Topic: 1 Introduction of Telecomm Industry

Executive Summary : : 

30/07/2010 Pandya Nikita - 09MBA019 4 Executive Summary : Role Of Telecom Sector in Development Process The telecom services have been recognized the world-over as an important tool for socioeconomic development of a nation. Telecommunication is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. It has become especially important in recent years because of enormous growth of information technology and its significant potential for the impact on the rest of the economy.

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30/07/2010 Pandya Nikita - 09MBA019 5 2010 Introduction :

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30/07/2010 Pandya Nikita - 09MBA019 6 Mobile Phone Revolution : Commenting on the emerging markets and use of cell phones, Bill Gates once said, “PC is the phone and phone is the PC.” In the same conference, Craig Mundie, Microsoft Chief Research Officer continued, “People in those rural environments are already buying computers. They happen to call them cell phones.”

Welcome in the New AVATAR of TELECOM WORLD! : 

30/07/2010 Pandya Nikita - 09MBA019 7 Welcome in the New AVATAR of TELECOM WORLD! India entering 2nd stage of “Telecom Revolution “ . INDIAN TELECOM SECTOR FIRST PHASE OF REVOLUTION : VOICE SECOND PHASE OF REVOLUTION : DATA

Telecommunication : : 

30/07/2010 Pandya Nikita - 09MBA019 8 Telecommunication : Managerial: “Telecom is a huge and varied bastion of technologies, companies, services and politics that is truly global in nature.” Technical: “Telecom in the real sense means transfer of information between two distant points in space.”

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30/07/2010 Pandya Nikita - 09MBA019 9 Topic: 2 : Introduction of Reliance Telecommunication

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30/07/2010 Pandya Nikita - 09MBA019 10 Reliance Communication has the reliable ,high capacity, integrate(both wireless and wire line) and convergent(voice, data and video) digital network. Today, Reliance Communication is revolutionizing the way India communicates and networks, truly bringing about the new way of life relationship and help to develop these concepts.

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30/07/2010 Pandya Nikita - 09MBA019 11 Continue……….. Together, these ideas can be converted into products and services that have great market potential. RCOM is a flagship company of Reliance Dhirubhai Ambani Group, India’s second largest business house. RCOM is India’s integrated and fully converged communication service provider in the private sector and has been rated among “Asia’s top 5 most valuable telecom company.”

Topic: 3 Players of Indian Telecom Industry : 

30/07/2010 Pandya Nikita - 09MBA019 12 Topic: 3 Players of Indian Telecom Industry

Different Players of Indian Telecom Industry : : 

30/07/2010 Pandya Nikita - 09MBA019 13 Different Players of Indian Telecom Industry : There are three types of players in telecom services: • State owned companies (BSNL and MTNL) • Private Indian owned companies (Reliance Communication, Tata Teleservices) • Foreign invested companies (Vodafone Essar, Bharti Airtel, Idea ) I WANT ONLY 1 SIM CARD

Market Share: Bharti Airtel Market Leader With 21.84 % Market Share in India : : 

30/07/2010 Pandya Nikita - 09MBA019 14 Market Share: Bharti Airtel Market Leader With 21.84 % Market Share in India : Overall Indian Telecom Industry Market Share : TRAI REPORT : MARCH 2010

Battle of Brands- Get Ready for Third World War !!!!!! : 

30/07/2010 Pandya Nikita - 09MBA019 15 Battle of Brands- Get Ready for Third World War !!!!!! “PAISAFICATION “ seems to be the name of the game in mobile telephony. Fighting for the Share of Wallet !!!!!!!!!!! 100 MILLION CUSTOMER MARK - NEW MAGIC NUMBER CONSOLIDIATION "TARIFF WAR" TenOperator causing Ripple Effect & demanding for Innovation/Renovation in Saturated Indian Telecom Market. WHAT IS FUTURE ?????

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30/07/2010 Pandya Nikita - 09MBA019 16 Topic :4 Analysis of Reliance Communication

1) SWOT Analysis: : 

30/07/2010 Pandya Nikita - 09MBA019 17 1) SWOT Analysis: S: Strengths Highly Focused on Indian Telecom Market. Leadership in fast growing Cellular Segment Huge Network Coverage. Proactive & Innovative Service Strong Financials Reliance is another name of “Trust “& “Ethics “. Highly Successful in the minds of Common Man.

W: Weakness : 

30/07/2010 Pandya Nikita - 09MBA019 18 W: Weakness No separate strategy for rural market. Distribution channel is not accurately categorized No Free Local Calls & STD Calls Packs offered by it. Small Players giving Strong Competition in Different Segmentation like Call Rates , GPRS , SMS Packs, Broadband Internet & other VAS. Customer lists not tested.  Some gaps in range for certain sectors.  Customer service staff need training.

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30/07/2010 Pandya Nikita - 09MBA019 19 Could develop new products. Local competitors have poor products.  Profit margins will be good. End-users respond to new ideas.  Can surprise competitors. T: Threats Environmental effects would favor larger competitors.  Market demand very seasonal. New schemes draw away the attention of customer from the original product. Poor Advertisement doesn’t attract the customer in the competitive market. O: Opportunities

2 ) MARKETING MIX : 4 P’s : 

30/07/2010 Pandya Nikita - 09MBA019 20 2 ) MARKETING MIX : 4 P’s P-Products. P- Price. P- Place. P- Promotion.

4 P’s : 

30/07/2010 Pandya Nikita - 09MBA019 21 4 P’s Product • Reliance Pre-paid • Reliance Post-paid • Wireless Handheld Value Added Services (VAS) Price • Customer based pricing strategies. • Flexible pricing mechanism Controlled by TRAI. Place • It has wide and extensive presence even it provides the services in India only. • Reliance Customer Care Touch Points Distributors. Promotion • Large scale print and video advertising. • Big celebrities like Hritik Roshan is roped in to endorse the product.

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30/07/2010 Pandya Nikita - 09MBA019 22 Topic : 5 Project Findings

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30/07/2010 Pandya Nikita - 09MBA019 23 VAS: Next Key to Success:- Definition as per TRAI In the Unified Access Service License (UASL), VAS is defined as follows- “Value Added Services are enhanced services which add value to the basic teleservices and bearer Services for which separate license are issued”. Caller Ring Back Tone:- In the race to capture share of mobile users’ hearts and wallets, operators have deployed mobile music solutions and enjoyed significant success. Among the varied portfolio of mobile music offerings, ring back tones have achieved killer application status with mobile subscribers in many markets worldwide. With ring back tones, subscribers replace the ring tone that callers normally hear with a personal choice of music or audio content - bringing a more enjoyable calling experience to their callers.CRBT service is more than an application; it is an end-to-end solution. Value Added Services: CRBT

Expectation of A Consumer from CRBT Provider : : 

30/07/2010 Pandya Nikita - 09MBA019 24 Expectation of A Consumer from CRBT Provider : WHAT I WANT FROM CRBT ALWAYS new contant LOW PRICE Best quality UNLIMITED Validity GOOD SERVICES & BEST PLANS

Consumer -Main Findings : About Reliance CRBT : 

30/07/2010 Pandya Nikita - 09MBA019 25 Consumer -Main Findings : About Reliance CRBT INDIAN TELECOM MARKET LEADER STRENGTHS: GOOD content GOOD Audiovisuality WEAKNESS : HIGH COST (automatic activated sometimes). Unsuitable Plans for the 1st Time Users. Awareness about Mobile CRBT is Low UNSUITABLE

Retailer -Main Findings :About Reliance CRBT : : 

30/07/2010 Pandya Nikita - 09MBA019 26 Education Factor- Low Knowledge About Mobile CRBT Customer Care as a Intermediate Result in to Value Chain Gap. Proper information is not provided. No Aggressive Promotions. More Focus on Selling of what Customer wants. Not aware about the flow of OBDs & IBDs. Not aware about the process to subscribe the service Retailer -Main Findings :About Reliance CRBT :

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30/07/2010 Pandya Nikita - 09MBA019 27 Topic : 6 Research Methodology & Analysis :

Research Objective:- : 

Research Objective:- 30/07/2010 Pandya Nikita - 09MBA019 28 To analyze the use of caller tune. To analyze the test of the customer for caller tunes. To analyze the need of the customer for caller tune. To analyze the reasons why people don’t use Caller tune. To analyze the requerment of customers to pay for Caller tune.

Research Methodology:- Type of the study:- Descriptive ResearchSampling Design:- Sample size : 100Area covered : AhmadabadCriteria : Mobile usersSubject for analysis : Perception of people about caller tune : 

Research Methodology:- Type of the study:- Descriptive ResearchSampling Design:- Sample size : 100Area covered : AhmadabadCriteria : Mobile usersSubject for analysis : Perception of people about caller tune 30/07/2010 Pandya Nikita - 09MBA019 29 Research Methodology

Which company's cellular service do you use? : 

Which company's cellular service do you use? Interpretation: From the above chart we can conclude that there are 30% user of Vodafone which is highest among all the competitors and then the Reliance and Airtel both are on second position with 21% users. Idea has 14% users, BSN has 11% users & others has 3% users. 30/07/2010 Pandya Nikita - 09MBA019 30

Are you currently using hello tunes/caller tunes? : 

Are you currently using hello tunes/caller tunes? Interpretation : From the above chart, we can conclude that 35% people use caller tune and 65% people still not using caller tune. 30/07/2010 Pandya Nikita - 09MBA019 31

Are you satisfied with the charges of caller tune? : 

Are you satisfied with the charges of caller tune? Interpretation : From the above chart, we can conclude that 37% people are highly satisfied with the the charges, 31% are satisfied, 26% said that prices are average and 6% are dissatisfied with charges. 30/07/2010 Pandya Nikita - 09MBA019 32

Are you satisfied with the audio output of caller tune? : 

Are you satisfied with the audio output of caller tune? Interpretation : From the above chart, we can conclude that 31% people are highly satisfied with the the audio output, 46% are satisfied, 20% said that prices are average and 3% are dissatisfied with audio output. 30/07/2010 Pandya Nikita - 09MBA019 33

In which language would you like to have CRBT? : 

In which language would you like to have CRBT? Interpretation : From the above chart, we can conclude that 63% people want to listen caller tune in Hindi, 20% want to listen in English,11% want in Gujarati, and 6% want to listen in other language. 30/07/2010 Pandya Nikita - 09MBA019 34

Which type of songs would you choose? : 

Which type of songs would you choose? Interpretation : From the above chart, we can conclude 43% want Bollywood songs, 9% want Bollywood Dialogs, 3% want Regional songs, 14% want Record my own voice, 14% want International songs, & 17% want Devotional songs. 30/07/2010 Pandya Nikita - 09MBA019 35

Which type of service for categorizing songs do you use most frequently? : 

Which type of service for categorizing songs do you use most frequently? Interpretation : From the above chart, we can conclude that 57% people want single tune for all, 31% want different tune for some set,& 11% want shuffle tunes. 30/07/2010 Pandya Nikita - 09MBA019 36

In what frequency would you like to change your caller tune? : 

In what frequency would you like to change your caller tune? Interpretation : From the above chart, we can conclude that 6% people change their caller tune most frequently, 14% people change weekly, 74% people change monthly & 6% people change their caller tune by monthly. 30/07/2010 Pandya Nikita - 09MBA019 37

Do you get your choice of caller tunes every time? : 

Do you get your choice of caller tunes every time? Interpretation : From the above chart, we can conclude that 77% people get their caller tune as per their requirement, & 23% people feel that they can’t get their choice of caller tune every time. 30/07/2010 Pandya Nikita - 09MBA019 38

why do you not use caller tune? : 

why do you not use caller tune? Interpretation : From the above chart, we can conclude that 48% people feel caller tune expensive, 14% are not interested, 3% feel it is only for fun loving people, 9% feel its luxury item, 15% feel that caller tune is not necessary & 11% said that the subscription process is unclear. 30/07/2010 Pandya Nikita - 09MBA019 39

How much would you like to pay per tune for caller tune? : 

How much would you like to pay per tune for caller tune? Interpretation : From the above chart, we can conclude that 68% people think that the charges per tune should be between 1 to 5 & 32% think that charges should be between 6 to 10. 30/07/2010 Pandya Nikita - 09MBA019 40

how much would you like to pay for monthly subscription charges for caller tune? : 

how much would you like to pay for monthly subscription charges for caller tune? Interpretation : From the above chart, we can conclude that 57% people think that the subscription charges would be between 1 to 10, 40% think that it would be between 11 to 20 & 3% think that it would be between 21 to 30. 30/07/2010 Pandya Nikita - 09MBA019 41

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30/07/2010 Pandya Nikita - 09MBA019 42 Topic : 7 Hypothesis :

Application of chi square statistical tool for analyzing : 

Application of chi square statistical tool for analyzing 30/07/2010 Pandya Nikita - 09MBA019 43

Ho: There is relation between age and their test about caller tune. H1: There is no relation between age and their test about caller tune.Since it is 4 x 6 table, the degree of freedom (D.F.) would be (4-1) x (6-1) =15Expected Frequency computed as follows:E11 = 15 x 18 E12 = 3 x 18 35 35 = 7.71 = 1.54 : 

Ho: There is relation between age and their test about caller tune. H1: There is no relation between age and their test about caller tune.Since it is 4 x 6 table, the degree of freedom (D.F.) would be (4-1) x (6-1) =15Expected Frequency computed as follows:E11 = 15 x 18 E12 = 3 x 18 35 35 = 7.71 = 1.54 30/07/2010 Pandya Nikita - 09MBA019 44

2א = Σ (O-E)2 = 38.285 E The value of 38.285 =2א d.f. is (r-1) x (c-1) = 15 2א tab= (at 5 % confidence level) 24.996Here 2א cal > 2א tab.Hence the calculated value is more than critical value.So, Ho is not ACCEPTED. Hence, there is no relation between age and their test for caller tune. : 

2א = Σ (O-E)2 = 38.285 E The value of 38.285 =2א d.f. is (r-1) x (c-1) = 15 2א tab= (at 5 % confidence level) 24.996Here 2א cal > 2א tab.Hence the calculated value is more than critical value.So, Ho is not ACCEPTED. Hence, there is no relation between age and their test for caller tune. 30/07/2010 Pandya Nikita - 09MBA019 45

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30/07/2010 Pandya Nikita - 09MBA019 46 Topic : 8 Recommendations & Suggestions :

Recommendations: : 

30/07/2010 Pandya Nikita - 09MBA019 47 Recommendations: The main thing in Reliance that I found is Advertising. They signed Hritik Roshan for 3 years, & yet they done only a single Advertisement with him. The another thing that I noticed is sometimes the services are automatically activated & the customers loose their money. By this Reliance also loose the customers trust. So it is most important to satisfy the customer. ”Marketing is not the Battle of Products. It is the Battle of Perceptions.” (Jack Trout & Ries)

Suggestions : : 

30/07/2010 Pandya Nikita - 09MBA019 48 Suggestions : Set the content targeting the specific user groups like youth, old age and women. 2) Develop ultra economy plans for poor people; to whom Subscribe a caller tune is still a luxury. 3) Educate customer on the benefits of Value-added services. 4) Company should make more promotional campaign in Urban areas. 5) Customer care services provided to the active customers should be more efficient towards the problem Solution.

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30/07/2010 Pandya Nikita - 09MBA019 49 For Untapped Rural Market: ADVERTISEMENT CAMPAIGN: ” Har Gaon se Gaon ki awaj ko jodta hua! Humara Reliance ! ” The whole advertisement and promotion is designed by taking urban youth in focus but there are large no of youths in rural sector as well and they can be their future consumers.Taking big stars as brand ambassador is good decision. But organizations can further use recent bronze medalist Boxer Vijendra Kumar as their Endorsement. Vijendra is having good looking personality and he belongs to rural area so in this way rural people will start associating themselves with that brand. Reliance can also use BALIKA VADHU fame “ANANDI” (Avika gaur) targeting rural women and rural youth.

For Youth Group: Advertisement Campaign: : 

30/07/2010 Pandya Nikita - 09MBA019 50 For Youth Group: Advertisement Campaign: “Yuva Bharat ka Yuva Reliance“. Although Hritik Roshan endorsement is successful today but for both Voice Service & Data Service Two Different famous Youth like Chetan Bhagat & Abhinav Bindra could create in Positioning Reliance as“Yuva Bharat ka Yuva Reliance.” For Working Women Group: Sania Nehwal would be the most appealing Star for Working Women Group.

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30/07/2010 Pandya Nikita - 09MBA019 51 Topic : 9 Learning's & Experiences

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30/07/2010 Pandya Nikita - 09MBA019 52 Overall Learning's And Experience Gain : Understanding of all the functions processes which is existing at Reliance . Understanding the culture of Reliance Communication. Understanding the problems of customers regarding CRBT. Understanding the way of working in Reliance. Understanding the promotional strategy without Brand Ambassador. Understanding VAS Services role in earning Revenue in Falling ARPU. Understanding CRBT (Caller Ring Back Tone ) Problems , Trends & Limitations. Understanding Difference between Theoretical Knowledge & Practical Knowledge.

Bibliography: : 

30/07/2010 Pandya Nikita - 09MBA019 53 Bibliography: ON-LINE WEBSITE: TRAI: www.trai.gov.in India Telecom News: indiatelecomnews.com Reliance Website: www.Reliance.in NEWSPAPERS: The Times of India The Economic Times

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30/07/2010 Pandya Nikita - 09MBA019 54 Pandya Nikita – 09MBA019 ANY QUESTIONS ?????????