47082503 summer-project-reliance-communication

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A PROJECT REPORT ON IMPROVEMENT OF SALES AND DISTRIBUTION IN RELIANCE COMMUNICATION BERHAMPUR, ORISSA. SUBMITTED BY SIBA PRASAD RAJGURU REG. NO- 08KA21 UNDER THE GUIDANCE OF INTERNAL GUIDE EXTERRAL GUIDE PROF K.MISHRRA Mr. SANGRAM PADHY FACULTY, KBS SALES HEAD, RELIANCE KRUPAJAL BUSINESS SCHOOL

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Page 1: 47082503 summer-project-reliance-communication

A PROJECT REPORT ON

IMPROVEMENT OF SALES AND DISTRIBUTION IN

RELIANCE COMMUNICATION

BERHAMPUR, ORISSA.

SUBMITTED BY

SIBA PRASAD RAJGURUREG. NO- 08KA21

UNDER THE GUIDANCE OF INTERNAL GUIDE EXTERRAL GUIDEPROF K.MISHRRA Mr. SANGRAM PADHYFACULTY, KBS SALES HEAD, RELIANCE

KRUPAJAL BUSINESS SCHOOL

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Krupajal Business School (Approved by All India council for Technical Education, New Delhi)

CERTIFICATE

This is to certify that Mr. SIBA PRASAD RAJGURU,

Regd.no 08KA21, a student of Krupajal Business School,

Bhubaneswar has successfully completed his interim report on “

IMPROVEMENT OF SALES & DISTRIBUTION IN RELIANCE

COMMUNICATION ,BERHAMPUR,ORISSA” under my guidance in

partial fulfillment of PGDM program. This is an original work which

he has carried out by himself and the same has not been carried

out by anyone earlier.

INTERNAL GUIDE Prof.Kamlesh Mishrra

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Declaration

I “SIBA PRASAD RAJGURU”, a student of Post Graduate

Diploma in Management, Krupajal Business School, Bhubaneswar,

hereby declare that this project report titled “IMPROVEMENT OF

SALES AND DISTRIBUTION IN RELIANCE COMMUNICATIONS” is a

record of my own work at RELIANCE COMMUNICATION,

Berhampur.

This report embodies the findings based on my study,

Observation and has not been submitted to any other

university/institute for the award of any degree or diploma.

Signature: Siba Prasad Rajguru

Reg. No: 08KA21

Institute: Krupajal Business School.

Place: Bhubaneswar

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Acknowledgement

For helping me in providing necessary information during various

stages of project thereby making it Successful.

It is a great privilege to express deep sense of gratitude and

indebtedness to esteemed guidance of Mr.Sangram, Reliance

Communication, Prepaid Head & Prof.Kamlesh Mishrra, faculty,

Krupajal Business School Without their guidance, encouragement

and inspiration this project would never have been possible.

Lastly I extend my sincere thanks to all those who have

helped me for the successful completion of this project.

Place:

Date:

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CONTENTS

INTRODUCTION

o BACKGROUND – COMMUNICATION INDUSTRY

o INDIAN TELECOM INDUSTRY AND MAJOR PLAYERS

o IMPORTANT MILESTONES

o SCOPE AND OPPORTUNITE

o INCOME OF TELECOM INDUSTRY

ABOUT THE COMPANY

o ANIL DHIRUBHI AMBANI (ADA) AN ORGANIZATION

o HISTRY OF ORISSA CIRCILE

o ACTIVITY OF BERHAMPUR OFFICE

o SALES AND DISTRIBUTION PLAN

TOPIC

o INTRODUCTION

o OBJECTIVE

o WORK DESIGN

o TABULATION/ANALYSIS

FINDINGS

LIMITATION

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CONCLUSION & SUGGESTIONS

BIBLIOGRAPHY

APPENDIX

CHAPTER- I

INTRODUCTION

BACKGROUND – COMMUNICATION INDUSTRY

INDIAN TELECOM INDUSTRY AND MAJOR PLAYERS

EVOLUTIONOF THE INDUSTRY IMPORTANT MILESTONES

SCOPE AND OPPORTUNITE

INCOME OF TELECOM INDUSTRY

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INTRODUCTION

SUMMER INTERNSHIP PROGRAM (SIP) is an

inseparable part of KRUPAJAL BUSINESS SCHOOL curriculum. It

is very much unique and deliberately set by KRUPAJAL BUSINESS

SCHOOL to let its budding managers a complete one. It helps the

interns to get acquainted with the real facts of the market and to

learn how to adjust with the market. It is a program by the help

of which one can assess his own potential and also can take

necessary actions to get into the track. It also helps the budding

managers to learn how they should be in the competitive era.

Moreover it is a program to brush up all the futures of KRUPAJAL

BUSINESS SCHOOL and make them fit for the organizations.

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INTRODUCTION TO TELECOM

Ever since the evolution of man on this earth, he wanted to

communicate with his fellow human being. In that era, he used

to communicate through signs and symbols. Gradually with time,

he started using words and today it is through mobiles, e-mails,

fax etc through which one communicates from one place to

another.

The word “Telecom” (which is an abbreviated version of '

telecommunication’) in real sense refers to the Interaction &

transfer of information between two distant points in space. This

meaning however, has been subjected to modifications in

accordance with further innovations made be the Telecom

Industry.

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SCENARIO OF INDIAN TELECOM INDUSTRY IN INDIA

In 1880, two telephone companies namely “The

Oriental Telephone Company Limited” and “The Anglo-Indian

Telephone Company Limited” approached the Government of

India with the objective of establishing Telephone Exchanges

across the country. Initially, the Government denied the

permission as it wanted to exercise its monopoly power over the

promising industry once it emerged. By the following year, it

changed its decision and finally on 28th January, 1882, license

was granted to The Oriental Telephone Company Limited of

England for opening telephone exchanges at Kolkata, Mumbai,

Chennai and Ahmedabad.

The opening of exchanges was followed by further innovations

and improvements in all sections of the telecom industry.

However, while telephones were introduced in the major towns

and cities across the country during the British period, total

number of telephones in India in 1948 were merely 80,000.The

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growth was negligible even after independence and the telephone

was used as a status symbol by the rich despite being an

extremely essential device of public utility. This sluggish rate of

growth continued till 1991 when the number of telephones was

5.07 million.

The period post 1975 saw resurgence in the India Telecom

Market by virtue of a series of fruitful decisions initiated by the

Government which included:

• The separation of Department of Telecom (DOT)

From Post and Telegraph (P&T) in 1975.

• The formation of Mahanagar Telephone Nigam Limited

(MTNL) out of (DOT) to provide telecom services exclusively

to Delhi and Mumbai.

• In the 1990s, the telecom sector was opened up by the

Government for private investment as a part of

Liberalization-Privatization-Globalization Policy.

• On 1/oct/2000, the Government corporative its operations

wing under the name of Bharat Sanchar Nigam Limited

(BSNL).

To top it all, the introduction of mobile

communication is undeniably the biggest success story

scripted by the telecom industry.

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• The Indian telecom industry is going through phenomenal

growth. With 100 million installed mobile subscribers, adding

four million new subscribers every month, and the cheapest

mobile rates in the world at two cents per minute, it is not

surprising that all the telecom vendors are vying for a piece

of this action. Major new trends unseen in previous markets

have emerged during the last five years.

• Start-ups and established vendors involved in the telecoms

eco- system need to take heed and develop appropriate

strategies in order to take advantage of this new high-

growth opportunity.

• The telecommunications industry is at the forefront of the

information age-delivering voice, data, graphics and video at ever

increasing speeds and in an increasing number of ways. Whereas

wire line telephone communication was once the primary service

of the industry, wireless communication services and cable and

satellite program distribution make up an increasing share of the

industry. During the late 1990s, the telecommunications industry

experienced very rapid growth and massive investment in

transmission capacity. Eventually this caused supply to

significantly exceed demand, resulting in much lower prices for

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transmission capacity. The excess capacity and additional

competition led to either declining revenues or slowing revenue

growth, which has led to consolidation within the industry, as

many companies merged or left the industry.

• The largest sector of the telecommunications industry

continues to be made up of wired telecommunications carriers.

Establishments in this sector mainly provide telephone service via

wires and cables that connect customers’ premises to central

offices maintained by telecommunications companies. The central

offices contain switching equipment that routes content to its final

destination or to another switching center that determines the

most efficient route for the content to take. While voice used to

be the main type of data transmitted over the wires, wired

telecommunications service now includes the transmission of all

types of graphic, video, and electronic data mainly over the

Internet.

• The telecommunications industry offers steady, year-round

employment.

• The business environment for India’s telecommunications

industry is excellent. The government policies have encouraged

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the growth, increased competition and high levels of foreign direct

investment (up to 74% foreign investment is now allowed).

The Indian government’s goal is to provide an environment where

service companies, handset manufacturers and network

companies will invest in India and use India for research and

development work (R&D).

• The favorable business environment has attracted a number

of foreign multinational firms such as Hutchison, Vodafone, Nokia

and Malaysia Telecom. In my opinion the real edge for India will

be the R&D facilities being setup there which can provide

innovation for next generation technologies - not only for India

but for everywhere else as well.

• Indian Telecom sector, like any other industrial sector in the

country, has gone through many phases of growth and

diversification. Starting from telegraphic and telephonic systems

in the 19th century, the field of telephonic communication has

now expanded to make use of advanced technologies like GSM,

CDMA, and WLL to the great 3G Technology in mobile phones.

Day by day, both the Public Players and the Private Players are

putting in their resources and efforts to improve the

telecommunication technology so as to give the maximum to their

customers.

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• The telecom network in India is the fifth largest network in

the world meeting up with global standards. Presently, the Indian

telecom industry is currently slated to an estimated contribution

of nearly 1% to India’s GDP.

IMPORTANT MILESTONES

1851 First operational land lines were laid by the

government near Calcutta (seat of British power).

1881 Telephone service introduced in India.

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable

Communication Company (IRCC)

1947 Nationalization of all foreign telecommunication

companies to form the Posts, Telephone and Telegraph

(PTT), a monopoly run by the government's Ministry of

Communications 1985 Department of Telecommunications

(DOT) established, an exclusive provider of domestic and

long-distance service that would be its own regulator

(separate from the postal system) 1986 Conversion of DOT

into two wholly government-owned companies: the Videsh

Sanchar Nigam Limited (VSNL) for international

telecommunications.

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The Indian telecom sector can be broadly

classified into Fixed Line Telephony and mobile telephony. The

major players of the telecom sector are experiencing a fierce

competition in both the segments. The major players like BSNL,

MTNL, VSNL in the fixed line and Reliance Communication,

Airtel, Hutch, Idea, Tata, in the mobile segment are coming up

with new tariffs and discount schemes to gain the competitive

advantage.

At 110.01 million connections ' Indian Telecom Industry' is the

fifth largest and fastest growing in the world.

Over the last 3 years, two out of every three new telephone

connections were wireless. Consequently, wireless now accounts

for 54.6% of the total telephone subscriber base, as compared to

only 40% in 2003. Wireless subscriber growth is expected to

grow at 2.5 million new subscribers every month in 2007. The

wireless subscriber base skyrocketed from 33.69 million in 2004

to 62.57 million in FY 2004 -2005.

The wireless technologies currently in use ' Indian

Telecom Industry ' are Global System for Mobile

Communications (GSM) and Code Division Multiple Access

(CDMA). There are primarily 9 GSM and 5 CDMA operators

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providing mobile services in 19 telecommunication circles and 4

metro cities, covering more than 2000 towns across the country.

And the numbers are still growing for ' Indian Telecom Industry.

Telecom Industry in India is regulated by 'Telecom Regulatory

Authority of India' (TRAI). It has earned good reputation for

transparency and competence. Three types of players exist in '

Telecom Industry India ' community.

State owned companies like - BSNL and MTNL.

Private Indian owned companies like - Reliance

Communication and Tata Teleservices.

Foreign invested companies like – Hutchison-Essar, Bharti

Tele-Ventures, Idea Cellular, BPL Mobile, Spice

Communications etc.

The Indian Telecom Industry services are not confined to basic

telephone but it also extends to internet, broadband (both

wireless and fixed), cable TV etc.

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INDIAN TELECOM STATISTIC AND MAJOR PLAYER

[Subscriber number is in million]

Total telephone subscriber 429.72Over-all Tele-density 36.98%Fixed-line user base 37.96%Wireless user base

( GSM+CDMA+WLL)

391.76

GSM Subscribers 288.36CDMA Subscribers 103.4Monthly new additions(wire line

+ wireless)

15.87%

Monthly new addition( wireless 15.64%

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LEADING CELLULAR SERVICE PROVIDERS MAJOR PLAYER

The leading cellular service providers have the following number

of subscribers:

SERVICE PROVIDER

NO.OF CDMA

SUBSCRIBERS

NO. OF GSM

SUBSCRIBERSRELIANCE COMMUNICATION

2.75 Crores 38.76 Lakhs

TATA INDICOM 1.07 Crores Recently Lunching

AIRTEL 3.37 Crores

AIRCEL 48 Lakhs

MTNL 24.98 Lakhs

BSNL 2.44 Crores

HUTCH 2.44 Crores

IDEA 1.3 Crores

SPICE 25.56 Lakhs

BPL 10.62 Lakhs

In India major market cover by the Bharti group

I.e. Airtel, after that Reliance communication is on the second

position. In a PIE graph I describe it,

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In communication market Airtel capture 24% of share at the

same time Reliance communication have a market share 22 %.

Reliance communication faces major competitions from the Airtel

and the other service providers. In a recent survey shows the

Indian telecom statistics.

NUMBER OF SUBSCRIBERS

TATA7%

HUTCH

2%MTNL

1%

VODAPHONE1%

IDEA 1%

BSNL 17%

AIRTEL24%

RELIANCE

22%

SPICE

14%

BPL7%

RELIANCE

AIRTEL

BSNL

IDEA

TATA

VODAPHONE

MTNL

HUTCH

BPL

SPICE

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SCOPE OF TELECOM INDUSTRY

The telecom industry is growing at a great pace and the growth

rate is expected to double with every passing year. There are

many new developments in the telecomm sector, including the

ingress of 3G technology that the Indian market is witnessing

at present. Public and Private Players MTNL, BSNL, VSNL

are the major Public Players, whereas Airtel, Idea, Hutch, Tata,

Reliance, BPL are the leading Private Players in the country.

Some of them are entering foreign markets as well.

OPPORTUNITIES IN INDIA

In the past 3 years has been surveyed by Indian Ministry of

Communications and Information Technology in New Delhi

very recently. The telecom sector is one of the leading

contributors to India's flourishing economy. According to the

report presented by taking into account the statement of

Indian Ministry of Communications and Information

Technology, the telecom opportunities in India has been

growing by 20 to 40 % every year since past 3 years.

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The telecom services in India have been recognized as a

world-class tool for the socio-economic development in

India. India is known to rank fourth in the telecom industry

in Asia after China, Japan, and South Korea and the telecom

network in India is known to stand in the eighth position

across the globe and second among the emerging

economies. The world average percentage for the telecom

industry as against the Indian average is 7.5 times while the

Asian average against the same was 4.5 times. The current

market range of the telecommunication industry in India has

been estimated to USD 8 billion and this is expected to

undergo an accretion by the end of 2012.

The growth witnessed by the telecom market in India has

increased the number of opportunities for the industry and

this has been fueled by the growing mobile sector, which has

attained the consumer level of 10 million by the end of

December 2002 that was almost 100 percent in the year.

Telecommunication Sector Opportunities in India assures a

transparent, safe, and secured ambiance for the telecom

market. Around 300 million population of highly consumable

middle-class status that is advantageous for the industry

surrounds the telecom sector in India. This is because, in

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some of the Indian that possess land line telephones can be

substituted by mobile phones that is very unlike the

developed countries. Therefore, it adds up to the growth in

mobile sector in Indian telecom industry.

Few more Telecommunication Sector Opportunities in India

include introduction of Internet telephony services,

privatization of VSNL, and introduction of a number of

international long distance services sector. The opportunities

in the Indian telecom sector is increasing at a massive pace

with the introduction of newer and innovative schemes in

various sectors and at present the telecom sector in India is

claimed to be one of the major contributors in India's

flourishing economy.

INCOME OF INDIAN TELECOM INDUSTRY

The Indian telecom sector continued its robust growth with the

wireless market growing at 9.91 percent and churning revenues

worth Rs.371 billion (Rs.37196 crore) for the second quarter

ending September, an official agency said. A total of 28.44

million subscribers were added in this quarter, the Telecom

Regulatory Authority of India (TRAI) said in a statement. The

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adjusted gross revenue (AGR) for the quarter is placed at Rs.273

billion (Rs.27, 357 crore) as against Rs.26, 990 crore (Rs.269

billion) for the previous quarter, thereby showing an increase of

1.36 percent.

“The total subscriber base of the wire line and wireless services

reached 353.66 million for the quarter ending September as

against 325.79 million for the quarter ending June, thus

registering an increase of 8.55 percent during the quarter.

However, the average revenue per user (ARPU) for GSM

subscribers, all India segment, decreased 7.53 percent from

Rs.239 in June to Rs.221 in September.

The second quarter also witnessed a spurt in number of free-to-

air (FTA) and pay channels being carried by the cable networks

for television. Currently, there are 161 FTA channels and 129 pay

channels as reported by 19 broadcasters/their distributors at the

quarter ending September.

However, no new private FM radio station came into operation in

the quarter under review, TRAI said. Also, no direct-to-home

(DTH) license was issued.

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Though the telecom industry saw various ups and downs, the

sector witnessed international investor community betting on the

Indian market.

The Indian telecom sector can be broadly classified into Fixed

Line Telephony and mobile telephony. The major players of the

telecom sector are experiencing a fierce competition in both the

segments. The major players like BSNL, MTNL, VSNL in the fixed

line and Airtel, Hutch, Idea, Tata, Reliance in the mobile segment

are coming up with new tariffs and discount schemes to gain the

competitive advantage. The Public Players and the Private Players

share the fixed line and the mobile segments. Currently the

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Public Players have more than 60% of the market share.

ABOUT THE COMPANY

[RELIANCE ANIL DHIRUBHAI AMBANI GROUP OF COMPANYS. (ADA)]

PUBLIC PLAYER38%

PRIVATE PLAYER62%

PUBLIC PLAYER

PRIVATE PLAYER

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The Reliance Group, founded by Dhirubhai H. Ambani (1932-

2002), is India's largest private sector enterprise, with

businesses in the energy and materials value chain. Group's

annual revenues are in excess of US$ 30 billion. The flagship

company, Reliance Industries Limited, is a Fortune Global 500

company and is the largest private sector company in India.

Reliance Communications Limited.

Reliance Capital Limited.

Reliance Power.

Reliance Health.

Reliance Energy Limited.

Reliance entertainment.

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RELIANCE COMMUNICATIONS

Reliance Communications Limited founded by the late Shri

Dhirubhai H Ambani (1932-2002) is the flagship company of the

Reliance Anil Dhirubhai Ambani Group. The Reliance Anil

Dhirubhai Ambani Group currently has a net worth in excess of

Rs. 63,000 crore (US$ 14 billion), cash flows of Rs. 12,000 crore

Page 28: 47082503 summer-project-reliance-communication

(US$ 3 billion), net profit of Rs. 8,000 crore (US$ 2 billion) and

zero net debt.

Reliance Communications is one of India's largest providers of

integrated communications services. With more than 48 million

customers, the company serves consumers and enterprises with

a digital network supporting voice, data, and video. Its fixed and

wireless communications services include domestic and

international voice, Internet access, messaging, and

videoconferencing. It also provides wholesale capacity,

infrastructure, and managed enterprise services through its

Reliance Global COM division. Reliance Communications is part of

the Reliance - Anil Dhirubhai Ambani Group.

Reliance Communications is India's foremost and truly integrated

telecommunications service provider. The Company, with a

customer base of around 71 million including over 2 million

individual overseas retail customers, ranks among the Top 10

Telecom companies in the world by number of customers in a

single country. Reliance Communications corporate clientele

includes 2,100 Indian and multinational corporations, and over

800 global, regional and domestic carriers.

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Reliance Communications has established a pan-India, next

generation, integrated (wireless GSM & CDMA Both ) and wire

line ), convergent (voice, data and video) digital network that is

capable of supporting best-of-class services spanning the entire

communications value chain, covering over 20,000 towns and

450,000 villages. Reliance Communications owns and operates

the world's largest next generation IP enabled connectivity

infrastructure, comprising over 175,000 kilometers of fiber optic

cable systems in India, USA, Europe, Middle East and the Asia

Pacific region.

RELIANCE CAPITAL

Reliance Capital is one of India’s leading and fastest growing

private sector financial services companies, and ranks among the

top 3 private sector financial services and banking companies, in

terms of net worth. The company has interests in asset

management and mutual funds, life and general insurance,

private equity and proprietary investments, stock broking and

other activities in financial services.

RELIANCE ENERGY

.Reliance Energy Limited, incorporated in 1929, is a fully

integrated utility engaged in the generation, transmission and

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distribution of electricity. It ranks among India’s top listed private

companies on all major financial parameters, including assets,

sales, profits and market capitalization.

RELIANCE HEALTH

In a country where healthcare is fast becoming a booming

industry, Reliance Health is a focused healthcare services

company enabling the provision of solution to Indians, at

affordable prices.

Reliance Health aims at revolutionizing healthcare in India by

enabling a healthcare environment that is both affordable and

accessable through partnerships with government and private

businesses.

RELIANCE ENTERTAINMENT

Reliance Anil Dhirubhai Ambani Group’s vision of assuming a

position of leadership in communications, media and

entertainment, Reliance Entertainment is geared to create a

significant presence in businesses across various vectors of

content, services and platforms for distribution. Reliance

Introduce Big TV (DTH) service in the market. Reliance

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Entertainment has made an entry into the FM Radio having won

45 stations in the recent bidding, BIG 92.7 FM is already India’s

largest private FM radio network with 12 radio stations across the

country.

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COMPANY LOGO

ABOUT COLOUR

RELIANCE BLUE RELIANCE RED

BLUE

Blue represents stability, confidence, optimism & above all

integrity.

RED

Red represents energy, passion & determination

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HISTORY OF ORISSA CIRCILE

About Reliance Telecom (ORISSA)

Reliance Telecom Limited (RTL) is a wholly-owned subsidiary of

the Reliance Communication Limited, a member of Reliance ADA

Group. Reliance ADA Group’s flagship company.

Reliance Telecom Limited (RTL) began operations in 1997-98. It

provides GSM based Mobility services, Value Added Services &

Applications in 8 telecom circles covering 15 Indian states. The

states covered are Assam, Arunachal Pradesh, Bihar,

Chhattisgarh, Himachal Pradesh, Jharkhand, MadhyaPradesh,

Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Sikkim, Tripura

and West Bengal (including Metro city Kolkata).

RTL has undertaken a major expansion and increased its

coverage to 6,300 towns. This has enabled RTL to significantly

scale up subscriber base to 11.5 million as of March 31, 2009.

RTL is in the process of further expanding its coverage to 12,000

towns under its licensed areas.

RTL’s Business has been further strengthened and complimented

by its parent company’s GSM expansion to remaining 14 Circles

across various Indian states. Parent company’s rapid and

successful ramp up in GSM based Mobile services has provided

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an added advantage to RTL of a bigger in-house ecosystem. This

has enabled RTL to serve Customers with enhanced domestic

roaming and VAS services.

Reliance Communications, Orissa’s first and only telecom service

provider offering CDMA and GSM mobile services.

Reliance Communications is the 2nd largest mobile service

provider in Orissa, with a combined base of over 21 Lakhs

subscribers.

ORISSA DATA ON (MAY 2009)

Reliance Telecommunication – 1393525

BSNL - 1539364

AIRTEL - 3253456

VODAPHONE - 572757

IDEA - 100237

TATA - 120032

DISHNET WIRELES - 990903

(4.87 % MONTHLY GROWTH)

After searching the secondary data of Orissa telecom I find that,

Reliance Communication face major competition from the Airtel.

Airtel capture 29% of the market at the same time Reliance

communication cover 27% of the market share. Other

competitors are available in the market like BSNL, Vodaphone,

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REVENUE

RELIANCE GSM27%

AIRTEL29%

BSNL15%

VODAPHONE9%

AIRCEL7%

IDEA4%

RELIANCE CDMA6%

TATA INDICOM3%

VERGIN0%

RELIANCE GSM

AIRTEL

BSNL

VODAPHONE

AIRCEL

IDEA

RELIANCE CDMA

TATA INDICOM

VERGIN

Aircel, Idea, Tata etc.

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ACTIVITY OF BERHAMPUR OFFICE

(1) Recharge voucher and Sim cards come from Bhubaneswar

to Berhampur office.

(2) Supply as per the order placed by the sub distributor.

(3) After sales service.

(4) In regular intervals company persons meet customer and

retailer to know their requirements & accordingly

improvement is made.

REGISTERED OFFICE

H.Block, 1st floor

Dhirubhai Ambani Knowledge Cit

Navi Mumbai

Phone: 022-30386010/6286

Fax: 30376622

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INTRODUCTION TO THE TOPIC

The topic assigned to me was “IMPROVEMENT OF SALES AND

DISTRIBUTION OF RELIANCE COMMUNICATION “in

Berhampur .Sales and Distribution is the major part for any

business organization. So we will survey about the entire

distributor plan and collect data from them based on how they will

satisfy the retailer and distributors? At the same time how they

will fulfill their sales target and how they can easily distribute

their products to the customers.

What is Sales?

Selling is preoccupied with the seller’s need to convert his product

into cash.

What is Distribution?

Distribution building a planned, professionally managed, vertical

marketing system that meets the needs of both manufacturer and

distributors.

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OBJECTIVE OF THE TRAINING

1. To know about the Reliance communications distributions

plan in Berhampur.

2. Fine out Key retail outlets.

3. Reliance distributions Vs. other telecom companies.

4. To find out the satisfaction level of retailer from Reliance

Communication compared to other service providers.

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TARGETS/TASKS

Reliance communications has given a target of generating

business for the company within a specific period. The tasks

assigned by the company guide are: -

To make acquisition of prepaid connections.

To make data sourcing.

To do survey on counter/outlet and gather feedback in

different area in Berhampur, Chatrapur, Ganjam, Humma,

Narendrapur etc.

ACQUSITIONS OF PREPAID CCONNECTIONS

We have given a time bound target of generating 200

Reliance GSM Prepaid connections within one & half month. This

target was again broken into weekly targets. We need to give 10

Reliance GSM Prepaid connections per day. For that I was given a

task of doing 4 to 5 counter visits every day.

1. Sales 200 SIM card.

2. Collect data base of 100 retail outlet.

3. Sales Rs 50,000 thousand recharge vouchers in the

market.

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DISTRIBUTION PLAN OF BERHAMPUR OFFICCE

ZONE-1 ZONE-2 ZONE-3

DISTRIBUTOR POINT

RETAILER POINT

CUSTOMER

SUB DISTRIBUTORR

SECONDARY DATA SOURCE

COMPANY

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BEAT PLAN OF BERHAMPUR OFFICE(WEEKLY )

Total counter = 450

Total sales person = 3

One counter = ½ hr (max)

Per day work = 8 hr

One week = 6 day (exp sun)

Calculate = 450/3=150 Counter

Weekly work = 150 counter*30 minute= 45hr.00min

Total work in a week = 8 hr*6 day=48 hr.

Per day counter visit = 16 counters.

(SECONDARY DATA SOURCES)

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STRATEGIES

To achieve the target easily I broke the whole target into weekly. For

sealing of 200 Pre Paid connections and 50,000 recharge voucher I used to

follow the steps: -

1. Find out prospective out-let.

2. Collect addresses from the office given data.

Take the appointment from the owner of the counter.

Meet them as per the time given by them.

I have done 4 to 5 counter per day to convince for sealing

Reliance pre paid connection.

Before I start my day I keep the following thing in my

mind.

1. Right person-Right place-Right time.

2. Introducing myself to the counter at the same time his

customer.

3. Requirement analysis.

4. Prospecting.

5. Convincing.

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WORK DESIGN AND DATA SOURCES

For the first objectives I personally talked to sales manager

and collected data related to distribution plan.

For my second objective I preferred to select the counter

which sales more than 50 SIM card per month and at the same

time sales the recharge vouchers per month above Rs 60,000

thousands. To help my work the company guide over 100 regular

counters they send me to 60 counters to collect data. Prepare an

appropriate questionnaire to collect information related to

Reliance sales and distribution compare to other organizations.

(The questionnaires were enclosed in the Appendix).

In my primary data which I collected from the Berhampur market

through questionnaires (from the retailer) I found that Airtel is

first choice of the retailers and customers also. Because Airtel

works on a well designed distribution plan, always ready to help

distributors, retailer and the customers as well. If we look at their

sales, company’s product are unique, distribution plan is well

managed and advanced in technical and man power, E.g. Easy

recharge is a latest technique which first introduce by Airtel

Page 44: 47082503 summer-project-reliance-communication

Company in the Orissa market. With out any paper voucher we

recharge our mobile account through a special SIM which is

easily available in retail outlet and the company’s salesman

touches every counter every day.

Reliance Communication is facing major competition from the

Airtel in Berhampur market. What I came to know after doing my

survey. In Orissa Reliance is the first company which launched

mobile services and captured a major market. But when Airtel

introduced his service company capture major market share in

Orissa. To find our key retail outlet I was taking a procedure i.e.

In Berhampur total customer is of Reliance =61 thousands

Total counter is =430

Covered by me = 60 out of 100.

For finding our Key retail outlet it totally depends on the sim

activation. After my primary data survey a gradation to all the

counter like,(SIM activation in month)

More then 50 SIM i.e. (A),

More then 30 SIM i.e. (B),

Page 45: 47082503 summer-project-reliance-communication

More then 20 SIM i.e. (C),

More then 6 SIM i.e. (D),

Others are SIM (E).

After survey of 61 counters in category (A), I found that

Satya mobile, Taratarini verity store, Shree Krishna mobile,

Panda mobile , Rashmi computer, Timex are the key retail out

let who sales more then 50 sim cards in a month.

Then I came to revenue part, in revenue key retail outlets are

who create more revenue for the Reliance communication.

(Selling voucher in a month)

More then 1, 00,000 i.e. (A),

More than 50,000 i.e. (B),

More than 25,000 i.e. (C),

More than 5,000 i.e. (D),

Others are (E).

TABULATION (COUNTER WISE SIM ACTIVATION)

RTL MARKET SHARE

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RETAILER RTC GSM

ACTIVATION

TOTAL GSM

ACTIVATIONSATYAM MOBILE 60 400 15.00 ATARATARINI VERITY STORE 100 230 43.48 ASRI KRISH0 MOBILES 65 213 30.52 A0NDA COMPUTERS 70 272 25.74 ARASHMI MOBILE 60 207 28.99 AKWALITY GENERAL STORE 60 190 31.58 ATIMEX 90 360 25.00 APRAKESH PANSHOP 70 240 29.17 APUSPA COMMUNICATION 50 250 20.00 BOM VARIETY STORE 30 176 17.05 CRENKU MOBILE 40 92 43.48 BSAGARIKA PAY PHONE 40 350 11.43 BPAYAL STUDIO 40 150 26.67 BPANDA FANCY 30 210 14.29 CMAA 0RAYANI 35 119 29.41 BSRIKANTA XEROX 50 230 21.74 BSABAT XEROX 30 136 22.06 CTARATARINI XEROX 50 190 26.32 BMAHIMA COMMUNICATION 20 465 4.30 DBABU & BABU COMMUNICATION 15 70 21.43 DS.KUMAR & S.KUMAR 10 145 6.90 DSANTOSHI TELECOME 15 113 13.27 DBOBBY GIFT HOUSE 22 102 21.57 CSAII GANESH TELECOM 15 78 19.23 DCHAKADOLA ELECTRONICS 20 73 27.40 DSHREE GANESH MOBILE 15 150 10.00 DFRIENDS BOOKS AND ELECTRIC 10 69 14.49 DSUSANTA STD 25 130 19.23 CRABI STD 10 105 9.52 DSHREESAI CD PARLOUR 15 38 39.47 DCELL FRESH 20 98 20.41 DSAI TELECOM 10 80 12.50 DSANTOSH TRADERS 15 67 22.39 DDURGA MOBICARE 10 44 22.73 DCHAMUNDI COMMUNICATION 20 90 22.22 DMATRUSHAKTI COMMUNICATION

1565 23.08 D

RATH COMMUNICATION 10 60 16.67 DDHREEN COMMUNICATION 10 25 40.00 DGANESH GFT HOUSE 15 85 17.65 DGIRIJA VARIETY STORE 20 115 17.39 DANURADH WATCH CENTER 25 240 10.42 CBI0YAK TRADERS 0 0 0 EPANDA TIMES 0 0 0 ELUCKY COMMUNICATION 0 24 0 EDALAI GENERAL STORE 0 0 0 ESAHU TELECOM 0 0 0 E

GRADE

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MAA TARARININI TEA STALL 0 0 0 EBABULA PAN SHOP 0 0 0 ESATYA MEDICAL STORE 0 0 0 ESHARP COPY 5 82 6.10 EUTAKAL NOTE BOOKS 5 106 4.72 EKANHA DRUG 5 44 11.36 ESIRIDI SAI TELECOM 5 94 5.32 EN.N.COMMUNICATION 5 67 7.46 EJAGA TOUR AND TRAVELS 5 27 18.52 ESUNIAL ENTERPRISE 5 60 8.33 EMEE0KHI COMMUNICATION 3 102 2.94 ESAHU TELECOM 3 13 23.08 E TOTAL 1373 7141 19.23

Show in graph format,

Total sim activation in 61 counter = 7141

Reliance sim activation = 1373

Reliance capture the market = 19.23 %

Page 48: 47082503 summer-project-reliance-communication

TOTAL GSM ACTIVATION,

7141

RTI ACTIVATION,

1373

TOTAL GSM ACTIVATION RTI ACTIVATION

It shows that Reliance has some problem in their sales and

distribution plan so company capture only 19.23 % in the total

market.

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COUNTER WISE SURVEY : (REVENUE GENERATION)

RETAILER RELIANCE TOTAL % OF RC GRADESATYAM MOBILE 150,000 395,000 37.97 ATARATARINI VERITY STORE 150,000 355,000 42.25 ASRI KRISH0 MOBILES 120,000 349,000 34.38 A0NDA COMPUTERS 80,000 392,400 20.39 BRASHMI MOBILE 100,000 335,000 29.85 BKWALITY GENERAL STORE 200,000 358,000 55.87 ATIMEX 180,000 550,000 32.73 APRAKESH PANSHOP 130,000 324,000 40.12 APUSPA COMMUNICATION 100,000 310,000 32.26 BOM VARIETY STORE 30,000 115,000 26.09 CRENKU MOBILE 60,000 190,000 31.58 BSAGARIKA PAY PHONE 100,000 485,000 20.62 BPAYAL STUDIO 20,000 80,000 25.00 DPANDA FANCY 120,000 440,000 27.27 AMAA 0RAYANI 100,000 380,000 26.32 BSRIKANTA XEROX 100,000 425,000 23.53 BSABAT XEROX 30,000 146,000 20.55 CTARATARINI XEROX 150,000 465,000 32.26 AMAHIMA COMMUNICATION 50,000 176,000 28.41 CBABU & BABU COMMUNICATION 12,000 39,000 30.77 DS.KUMAR & S.KUMAR 30,000 198,000 15.15 CSANTOSHI TELECOME 30,000 125,000 24.00 CBOBBY GIFT HOUSE 30,000 230,000 13.04 CSAII GANESH TELECOM 30,000 195,000 15.38 CCHAKADOLA ELECTRONICS 20,000 80,000 25.00 DSHREE GANESH MOBILE 30,000 302,000 9.93 CFRIENDS BOOKS AND ELECTR 0 35,000 0.00 ESUSANTA STD 40,000 180,000 22.22 CRABI STD 20,000 96,000 20.83 DSHREESAI CD PARLOUR 10,000 41,000 24.39 DCELL FRESH 15,000 90,002 16.67 DSAI TELECOM 70,000 205,000 34.15 BSANTOSH TRADERS 5,000 13,000 38.46 E

DURGA MOBICARE 40,000 184,000 21.74 CCHAMUNDI COMMUNICATION 30,000 102,000 29.41 CMATRUSHAKTI COMMU 15,000 54,000 27.78 DRATH COMMUNICATION 30,000 95,000 31.58 CDHREEN COMMUNICATION 20,000 74,000 27.03 DGANESH GFT HOUSE 25,000 84,000 29.76 DGIRIJA VARIETY STORE 30,000 110,000 27.27 CANURADH WATCH CENTER 65,000 166,000 39.16 BBI0YAK TRADERS 20,000 170,001 11.76 DPANDA TIMES 10,000 75,000 13.33 DLUCKY COMMUNICATION 7,000 105,000 6.67 D

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DALAI GENERAL STORE 15,000 86,000 17.44 DSAHU TELECOM 10,000 47,000 21.28 DMAA TARARININI TEAS STALL 5,000 15,000 33.33 EBABULA PAN SHOP 0 5,000 0.00 ESATYA MEDICAL STORE 30,000 79,000 37.97 CSHARP COPY 30,000 195,000 15.38 CUTAKAL NOTE BOOKS 20,000 99,000 20.20 DKANHA DRUG 25,000 105,000 23.81 DSIRIDI SAI TELECOM 30,000 185,000 16.22 CN.N.COMMUNICATION 15,000 74,000 20.27 DJAGA TOUR AND TRAVELS 25,000 81,000 30.86 DSUNIAL ENTERPRISE 20,000 25,000 80.00 DMEE0KHI COMMUNICATION 35,000 270,000 12.96 CSAHU TELECOM 10,000 45,000 22.22 D TOTAL 2,874,000 10,629,403 27.04

(Revenue in Lakhs)

In the revenue part company have the same problem face in the

market.

In the revenue part company have the same problem face in the

market.

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REVENUE

2,874,000

3,080,000

1,594,000

920,000

706,000

418,401

686,000

351,002

00

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

RELIANCE

GSM

AIRTEL BSNL

VODAPHONEAIRCEL IDEA

RELIANCE CDMA

TATA

VERGIN

RELIANCE GSM

AIRTEL

BSNL

VODAPHONE

AIRCEL

IDEA

RELIANCE CDMA

TATA INDICOM

VERGIN

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FINDINGS

From the fitment survey that has been carried away in one big

grown market of Orissa i.e. Berhampur. The following findings can

be drawn out.

MARKET POTENTIAL

1. Market potential of total SIM activation in the Berhampur

(based on survey data) is 7141 per month.

The Company is selling only 1373 i.e. 19.23% of total SIM

activation.

2. Market potential of total recharge voucher is Rs.

10,629,403 in Lakhs.

But the company is selling only Rs 2,874,000 Lakhs

Paper voucher and easy recharge in the market which

27.04 % of total selling.

3. When I collected data from the market I found that the

mismanagement of sales activity and some major problem

in distribution plan held in the Berhampur distributor office.

So the

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LIMITATIONS OF THE STUDY

1. To collect the data from all the owner of retail outlet of

Berhampur in a short span of time was very difficult.

2. Some owner could not understand the point of the

questionnaires so their answers were confusing.

3. Some owners have given opinion only about the highest

sales of his counter.

4. Some of them don’t understand the questionnaires and

simply say “we can’t say anything”.

5. Major counters do not feel comfortable to disclose there

sales figure and some counter’s owners could not get much time

to answer my questions.

6. As we are fresh to the market it took little bit time to

generate leads.

7. Mobile phone market in BERHAMPUR is almost saturated.

8. The sales executives of RELIANCE COMMUNICATION have

already captured the market so Retailer is not accepting us.

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9. Now days in Reliance Communication have some problem

like Network, in Easy Recharge, and the percentage what

company gives to the retailer is less to compare to other

competitors. So retailers need more percentage in

business.

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SUGGESTION & CONCLUSION

1. Human Resource should be strengthened as per the market

need. i.e some more sales persons must be appointed who can

touch the retailers on the daily basis.

2. The company must give more emphasis to distribution part

of the Berhampur market.

3. Company should give more incentive to the retailer

because the competitors are offering more.

4. Quality of service to the customer and the retailer should

be maintained by the company.

5. In my point of view after analyzing the primary data and

secondary data I suggested a new beat plan to the Berhampur

office i.e.

Total Counters = 450

Total Sales man = 5

One S.P can visit =450/5=90 counters

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Per one counters max = 15 minutes

Per day work = 8 hr.

In a week = 6 days (exp sun)

Total working hour week = 48 hr

Let one S.P visit per day = 32 counters

One S.P visit in a week = 32*6= 192 counters

Five S.P visit total cou. In a week =192*5= 960 counters

Five S.P visit total counter in a day= 32*5=160 counters

Total counters =450

They can cover 450 counters in 3 days. In next 3 days they

can get 3 days more to visit once another time to the retail outlet

and fulfill the demand of the customer.

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BIBLIOGRAPHY

1. MARKETING MANAGEMENT- PHILIP KOTLER

2. www.reliancecommunication.com

3. www.indiancellular.com

4. www.phoneworld.com

Page 58: 47082503 summer-project-reliance-communication

QUESTIONNAIRE

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1 RETAILER NAME :

2 ADDRESS:

3CONTACT PERSON:

4 GENDER: M/F

5 DATE OF BIRTH:

6 MARRIED:YES/NO

IF YES DATE

7BUSINESS DETAIL:

SL.NOCOMPANY NAME

AVG ACTIVATION

AVG REVINEW

BEAT FREQUENCY

EASY NUMBER

1RELIANCE GSM

2 AIRTEL 3 VODAPHONE 4 AIRCEL 5 BSNL 6 IDEA

7RELIANCE CDMA

8TATA INDICOM

9 VERGIN

8 BEST SERVICE PROVIDER

9ANY SUGGESATION:

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THANKS & REGARDRETAILER SEAL & SIGNATURE

SIBA PRASAD RAJGURUR.NO-08KA21,PGDMKRUPAJAL BUSINESS SCHOOLBHUBANESWAR