an analysis of pricing and promotion of reliance's gsm launch

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ABSTRACT To understand the necessity of the launch of GSM technology, an exhaustive research was done about the telecom industry with special focus on mobile operators. Then, comparative analysis of value added services of all the mobile operators in Chennai was done. Comparative analysis helped us to know the different types of VAS and pricing patterns of the same. A survey was done to check the level of awareness among the reliance retailers and another survey was done to know the type of VAS customers. A comparative analysis of the tariff plans among the various players, which gave insights into the pricing strategies. In the next phase, a survey was done to know the most popular brand as per retailers and to know the various promotional activities done by the various players in the market. Additionally, telephonic interview were done to take a feedback from the existing customers of the reliance’s’ CDMA and HELLO who have not recharged .All these surveys and interviews helped us to make a questionnaire for the pricing and promotion of the GSM in Chennai. The questionnaire was administered on 100 customers to collect the responses related to the pricing

Transcript of an analysis of pricing and promotion of reliance's gsm launch

Page 1: an analysis of  pricing and promotion of reliance's gsm launch

  ABSTRACT

To understand the necessity of the launch of GSM technology,

an exhaustive research was done about the telecom industry with special focus on

mobile operators. Then, comparative analysis of value added services of all the mobile

operators in Chennai was done. Comparative analysis helped us to know the different

types of VAS and pricing patterns of the same. A survey was done to check the level of

awareness among the reliance retailers and another survey was done to know the type of

VAS customers. A comparative analysis of the tariff plans among the various players,

which gave insights into the pricing strategies. In the next phase, a survey was done to

know the most popular brand as per retailers and to know the various promotional

activities done by the various players in the market. Additionally, telephonic interview

were done to take a feedback from the existing customers of the reliance’s’ CDMA and

HELLO who have not recharged .All these surveys and interviews helped us to make a

questionnaire for the pricing and promotion of the GSM in Chennai. The questionnaire

was administered on 100 customers to collect the responses related to the pricing and

promotion. A Visit was made to the 240 outlets in Chennai and each retailer was

evaluated on standard parameters.

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About Reliance-1.1

Reliance – Anil Dhirubhai Ambani Group, a descendant of the

Reliance Group founded by Shri Dhirubhai H Ambani , ranks among India’s top three

private sector business houses in terms of net worth. Its business ranges from

telecommunications (Reliance Communications Limited) to financial services (Reliance

Capital Ltd) and the generation and distribution of power (Reliance Infrastructure

Limited).

Reliance – ADA Group’s chief company, Reliance Communications,

is India's largest private sector information and Communications Company, with over 71

million subscribers. It has established a pan-India, high-capacity, integrated (wireless and

wire line), convergent (voice, data and video) digital network, to offer services spanning

the entire infocom value chain.

Other major group companies — Reliance Capital and Reliance

Infrastructure — are widely acknowledged as the market leaders in their respective areas

of operation.

Its business includes, a complete range of telecom services covering

mobile and fixed line telephony. It includes broadband, national and international long

distance services and data services along with an extensive range of value-added services

and applications.

Reliance Mobile (formerly Reliance India Mobile), came into existence on 28

December 2002, on the occasion of the late Dhirubhai Ambani’s 70th birthday, was

among the initial initiatives of Reliance Communications. It marked the auspicious

beginning of Dhirubhai’s dream of ushering in a digital revolution in India. Today,

reliance can proudly claim that they are instrumental in harnessing the true power of

information and communication, by bestowing it in the hands of the common man at

affordable rates.

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Reliance Communications is the first operator to offer mobile

services on both CDMA and GSM platforms as it is already offering services in CDMA.

The company would launch GSM in 11,000 towns in the first phase

and in the next few months it would be available in 24,000 towns. The company would

also be participating in the proposed 3G auction next year and is planning an investment

of Rs2,000 crore-Rs4,000 crore on 3G network. RCOM was the first company which was

awarded dual spectrum and it has invested over Rs10, 000 crore in the last 15 months to

roll out the GSM network.

Telecom Industry-1.2

India has become one of the fastest-growing mobile markets in the

world. The mobile services were commercially launched in August 1995 in India.

Although mobile telephones followed the New Telecom Policy 1994, growth was tardy

in the early years because of the high price of handsets as well as the high tariff structure

of mobile telephones. The Telecom Policy in 1999, the industry heralded several pro

consumer initiatives, mobile subscriber additions started picking up. The number of

mobile phones added throughout the country in 2003 was 16 million, followed by 22

million in 2004, 32 million in 2005 and 65 million in 2006. The only country with more

mobile phones than India with 246 million mobile phones is China – 408 million.

India has opted for the use of both the GSM (global system for

mobile communications) and CDMA (code-division multiple access) technologies in the

mobile sector. In addition to landline and mobile phones, some of the companies also

provide the WLL service.

In the year 2008 the total GSM and CDMA mobile subscriber base

in the country was 375 million, which represented a nearly 50% growth when compared

with previous year.

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GSM (Global System for Mobile communications: originally from

Group Special Mobile is the most popular standard for mobile phones in the world. Its

promoter, the GSM Association, estimates that 80% of the global mobile market uses the

standard. GSM is used by over 3 billion people across more than 212 countries and

territories.

Its ubiquity makes international roaming very common between

mobile phone operators, enabling subscribers to use their phones in many parts of the

world. GSM differs from its predecessors in that both signaling and speech channels are

digital, and thus is considered a second generation (2G) mobile phone system. This has

also meant that data communication was easy to build into the system.

The ubiquity of the GSM standard has been an advantage to both

consumers (who benefit from the ability to roam and switch carriers without switching

phones) and also to network operators (who can choose equipment from any of the many

vendors implementing GSM. GSM also pioneered a low-cost (to the network carrier)

alternative to voice calls, the Short message service (SMS, also called "text messaging"),

which is now supported on other mobile standards as well. Another advantage is that the

standard includes one worldwide Emergency telephone number, 112. This makes it easier

for international travelers to connect to emergency services without knowing the local

emergency number.

Newer versions of the standard were backward-compatible with the

original GSM phones. For example, Release '97 of the standard added packet data

capabilities, by means of General Packet Radio Service (GPRS). Release '99 introduced

higher speed data transmission using Enhanced Data Rates for GSM Evolution (EDGE).

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MARKET SHARE OF VARIOUS OPERATORS IN INDIA

Service operator Subscriptions Market Share

1 Bharti Airtel 88382758 33.04%

2 Vodafone Essar 63340024 23.68%

3 BSNL 42673357 15.95%

4 IDEA 4001615 14.96%

5 Aircel 16761397 6.27%

6 Reliance Telecom 10353841 3.87%

7 MTNL 4003807 1.50%

8 BPL 2007303 0.75%

9 All India 267538640 100.00%

Market share of various GSM operators in Tamil Nadu

TRENDS-1.3

1. Subscriber growth in India will continue, driven by rural expansion, entry of newer

operators, 3G and cheaper handsets.

1.Aircel 35.41%

2.Airtel 28.40%

3.Vodafone 22.85%

4.BSNL 13.32%

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2. Incumbent operators will face challenges (and opportunities) on four fronts: new

operators, mobile number portability, 3G and MVNOs.

3. Focus on Value-added Services and Data will increase in saturated, urban markets.

4. Mobile VAS operators which build direct-to-consumer relationships will start

emerging.

5. Flat-rate Data Plans will accelerate the use of the Mobile Internet, Social Media and

Rich Media.

6. Operators and/or handset players will launch AppStores to drive usage, innovation

and revenues.

7. Mobile Payments and Commerce will come into vogue for micro transactions.

8. Companies will create multi-faceted mobile presence to deepen customer

relationships and drive permission-based interaction and engagement.

9. The Mobile will emerge as the next advertising and marketing medium - and be seen

as capable of not just mass reach but also allow a high degree of targeting.

PRICING - 1.4

Pricing plays an important role in the launch of a new product. Various steps in setting

pricing policy are:

Step1: Selecting the Pricing objective.

Step2: Determining Demand.

Step3: Estimating Costs.

Step4 : Analysis Competitors’ Costs, Prices and Offers

Step5: Selecting a Pricing Method.

PROMOTIONAL ACTIVITIES- 1.5

Promotions help organization to create awareness of their products

or services, or about the organization itself among the target audience. It then induces

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interest, develops a desire and finally motivates consumers to take an action (in the form

of purchase). They are advertising, sales promotion and public relations.

Above the line sales promotion

Above the line is a type of advertising through media such as TV,

cinema, radio, print, banners and search engines to promote brands. Major uses include

television and radio advertising, web and Internet banner ads. This type of

communication is conventional in nature and is considered impersonal to customers. It

differs from Below the line advertising, which believes in unconventional brand-building

strategies, such as direct mail and printed media

Below the line sales promotion

Below the line sales promotions are short-term incentives, largely

aimed at consumers. With the increasing pressure on the marketing team to achieve

communication objectives more efficiently in a limited budget, there has been a need to

find out more effective and cost efficient ways to communicate with the target markets.

This has led to a shift from the regular media based advertising.

Below the Line uses less conventional methods than the usual

specific channels of advertising to promote products, services, etc. than Above the Line

strategies. These may include activities such as direct mail, public relations and sales

promotions for which a fee is agreed upon and charged up front. Below the line

advertising typically focuses on direct means of communication, most commonly direct

mail and e-mail, often using highly targeted lists of names to maximize response rates.

Another interesting and very effective BTL is Ssop Intercept. Trained sales personnel,

often young women, are deployed at Retail Stores, near the shelves of targeted products.

These young women convince customers visiting these shelves about the better aspects of

their brand compared with others. This is ideal for new launches as it generates trials,

which if successful result in repeat sales. In addition, above the line is much more

effective when the target group is very large and difficult to define. But if the target

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group is limited and specific, it is always advisable to use BTL promotions for efficiency

and cost-effectiveness.

More recently, agencies and clients have switched to an 'Integrated

Communication Approach.' BTL is a common technique used for "touch and feel"

products (consumer items where the customer will rely on immediate information rather

than previously researched items). A BTL technique ensures recall of the brand while at

the same time highlighting the features of the product.

In a nutshell, while Above-the-Line promotions are tailored for a

mass audience, BTL promotions are targeted at individuals according to their needs or

preferences. While Above-the-Line promotions can establish brand identity, BTL can

actually lead to a sale. Above-the-line promotions are also somewhat impossible to

measure well, while BTL promotions are highly measurable, giving marketers’ valuable

insights into their return-on-investment.

According to EBS Worldwide, mainstream mass broadcast

marketing is increasingly being viewed as uneconomical, in terms of Return on

Investment, which is where BTL marketing fits in.

METHODS OF BELOW THE LINE SALES PROMOTION

Price promotion

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Price promotions are also commonly known as" price discounting". These can be

done in two ways:

o A discount to the normal selling price of a product.

o More of the product at the normal price.

Price promotions however can also have a negative effect by spoiling the brand

reputation or just a temporary sales boost (during the discounts) followed by a lull

when the discount would be called off.

Coupons

Gift with purchases, also gifts certificates

Competitions and prizes

This is an important tool to increase brand awareness amongst the target

consumer. It can be used to boost up sales for temporary period and ensure usage

amongst first time users.

Money refunds

A customer receives a money refund after submitting a proof of purchase to the

manufacturer. Customers often view these schemes with some suspicion –

particularly if the method of obtaining a refund looks unusual or onerous.

Frequent user/loyalty incentives

Point-of-sale displays

PROMOTIONS ON THE LAUNCH OF GSM IN CHENNAI

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Reliance communication used ATL marketing and below the line

promotions .In the ATL line promotions they have used newspapers- national as well as

local. And also for the launch of GSM they have a tie up with the radio mirchi.

DATE CAMPAIGN MEDIUM PUBLICATION

22/04/09 NOW IN CHENNAI TAMIL DAILY THANTI

24/04/09 Sirandha prepaid

ipodhu Reliance GSM

udan

TAMIL DINA MALAR

27/04/09 Sirandha prepaid

ipodhu Reliance GSM

udan

TAMIL MALIA MALAR.

In BTL of marketing they have used free distributions of T –shirts, point of sale display,

competitions and gifts.

This was the advertisement which was published in the TIME OF INDIA on the launch of

GSM in Chennai.

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OBJECTIVES - 2.1

Primary

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To analyze the various tariff plans available in the market

To study the pricing patterns of reliance and other service providers

To learn about the promotions of reliance and other service

providers.

Secondary

To check the level of awareness of VAS among the retailers and the

customers.

To check the response of customers on different offers and tariffs.

To learn about the distribution network for the BTL marketing.

SCOPE

The project will help the company to develop effective pricing &

promotions to target the customer. It also help the company to know their brand value form the

point of the retail & customer. The findings from the project could help the company to find a

relation between the sales & promotion

METHODOLOGY -2.2

Type of research design: Exploratory studies.

Exploratory studies: It helps in understanding and assessing the critical issues of various

situations. It is not used in cases where a definite result is desired. The study results are

used for subsequent research to attain conclusive results for a particular situation.

Exploratory studies are conducted for three main reasons to analyze a situation, to

evaluate alternatives and to discover new ideas.. A combination of these techniques gives

rise to important exploratory techniques that are Secondary data analysis, Experience

surveys, and Focus groups.

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Sample size: A Sample of 100 customers.

Sampling technique: Cluster sampling technique.

Procedure – 2.3

The project is divided into two parts one is to analyze the pricing strategies for the

launch of GSM. In this part, secondary data analysis would be done and comparison

would be made with the other market players .It would also include collection of primary

data by administrating the questionnaire to the cluster of customers.

The sample is divided into 5 categories:

House wives.

Businessmen.

Employees.

College students.

Auto drivers.

Effectiveness of the promotions would be concluded by primary data survey of the retailers

and the customers.

Limitations -2.4

1. Sample size is small.

2. Every promotional activity cannot be tracked down.

3. The study was carried within a short span of time from the launch of GSM.

4. Major proportion of respondents was unaware of value added services.

DISCUSSION -2.5

Before the launch of GSM

A) A survey was done to check the level of awareness among the reliance

retailers and another survey was done to know the type of VAS customers.

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It was a pilot study which was done on the 30 customer .the purpose of the

the survey was to find the various value added services used by the

customers. The output from this pilot study helped us to form a

questionnaire for the retailer & customer survey.

B) A survey was done to check the level of awareness among the Reliance’s

retailers. A visit was made to the 19 Reliance’s web worlds in order to

check the awareness among the employee of the R-world. The result helped

us to know about the area of improvement.

C) Another survey was conducted to find out the retailers response regarding

the various GSM operators in Chennai. The main focus of the survey was

to find out the market the leader, important features of the different services

operator, type of customers using specific brand, commission given by the

company, most saleable pack & visibility of the various brand are

calculated.

D) A survey was conducted to know the retailer feedback regarding Reliance‘s

landline – HELLO. To find out the whether the customer are using it for

incoming or for both outgoing & incoming. 50 retailer were participated in

this survey

After the launch of GSM

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E) Questionnaire were design and methodology was finalized for the customer

response survey 100 customer were participated in this survey the main

focus of the survey were :

1. To find the response of the customer to the 3 pricing scenario which are

If local call rate is decreased by 25 p & STD is increased by 25 p.

If local call rate is increased by 25 p & STD is decreased by 25p but

sms is decreased by 50p.

No change in the call rates but sms is decreased by 50paisa

This question gave us the inside about the various the pricing pattern that

can be used & sensitivity of the various pricing combination

2. Another question was framed so that we come to know about the interest

of the customer to the various value added services. The customer asked

to choose the one of the value added service which they are using or

which they would used in future

Caller tunes

Cricket score

Wap services.

Ring tunes

Stock portfolio

3. Awareness about the launch of GSM in Chennai

4. Source of information by which the customer gets to know about the offers provided by the various operators. It was the close ended question & customer had to choose one out of the following

Sms Internet Retailers

Word of mouth Television Posters

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5. After the analysis & the feedback from the retailers , these 3 plans were chosen for the survey

6. To find out the visibility of the service provider which reflect kind of promotion they are using F) A visit was in the 240 outlet in Chennai for the

display contest & each retailer was evaluated on certain parameter

No. Contest Points Conditions Additional

points

1. SIM pack display

contest

20 Minimum 20 SIM

packs to be

2 points for

every

PLAN 2

MRP 75-80

VALIDITY NIL.

TALKTIME 0

LOCAL CALLS CHARGES

.JODI NO. .10Rs/min

TO OTHERS .99Rs/min

STD CALL CHARGES

TO SAME NETWORK PROVIDER

1 Rs/min

TO OTHER

OPERATORS

1.5 Rs/min

SMS CHARGES

JODI NUMBER .10 Rs/sms

OTHER LOCAL .25 Rs/sms

NATIOANL .50Rs/sms

INTERNATIONAL 5Rs/sms

PLAN 1

MRP 45-50

VALIDITY LIFETIME

TALKTIME 20

LOCAL CALLS CHARGES

SAME NETWORK PROVIDER

.30Rs/min

TO OTHERS .60Rs/min

STD CALL CHARGES

TO SAME NETWORK PROVIDER

1 Rs/min

TO OTHER

OPERATORS

1 Rs/min

SMS CHARGES

SAME NETWORK PROVIDER

1 Rs/min

OTHER LOCAL 1 Rs/min

NATIOANL 1 Rs/min

INTERNATIONAL 5Rs/sms

PLAN3

MRP 95-99

VALIDITY 10

TALKTIME 30 days

LOCAL CALLS CHARGES

.

ALL .99Rs/min

STD CALL CHARGES

TO SAME NETWORK PROVIDER

1.5 Rs/min

TO OTHER

OPERATORS

1.5 Rs/min

SMS CHARGES

SAME NETWORK PROVIDER

.50Rs/sms

OTHER LOCAL .50Rs/sms

NATIOANL .50Rs/sms

INTERNATIONAL 5Rs/sms

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displayed additional

pack

displayed

2. Posters 10 Minimum 10

posters to be

displayed

2 points for

every

additional

poster

displayed

3. Creativity Max 30 Use innovation and earn

maximum 30 points.

4. Mystery Buyer

Contest

20

Recommend Reliance GSM

during the random mystery buyer

visit and earn points per visit

DATA ANALYSIS - 3.1

After inspecting these 259 retailers what have found on analysis average score

was between 50- 70 which represented 70% of the population and 14% fall in the

category of 0-30 and remaining 16% fall in the above 100 category.

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RESULTS OF THE CUSTOMER SURVEY

EXISTING CONNECTIONS

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43%

25%

22%

6%4%

Airtel

vodafone

Aircel

BSNL

Reliance

Interpretation:

Out of the 100 customers who participated in survey 43% were Airtel users , 25 %

were Vodafone users ,22% Aircel users, 6% were Reliance users and 4% were BSNL

users. Reason for Reliance’s low count is because the survey was conducted only after 1

week of the launch of GSM

RESPONSE OF TARIFF PLANS

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66%

24%

10%

Plan 1

plan 2

plan 3

Interpretation

In this question the participants were asked to select one tariff plan out of the

three plans. These plans were decided after the retailer’s feedback. On analysis it was

found that 66% chose plan 45-50, 24% chose plan 75-80, 10% chose plan 95-99.

RESPONSE TO THE PRICING SCENARIO QUESTION

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54%40%

6%

Scenario 1

Scenario2

Scenario 3

Interpretation:

The customers were given three scenarios:

Scenario 1: If local call rate is decreased by .25 Rs & STD is increased by .25 Rs.

Scenario 2: If local call rate is decreased by .25 Rs & STD is increased by .25 Rs.

Scenario 3: No change in the call rates but sms is decreased by.5 Rs.

On analysis it was found 54% said yes to the scenario one ,46% agreed on the scenario 2

and rest 10 % agreed on the scenario three.

REPRESENTATION OF THE USAGE OF BOOSTER PACKS

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46%

62%

YES

NO

Interpretation:

In order to check the responses of the customers regarding the booster pack , it

was foind that 62% uses booster for rate cutters and 46% donot use booster pack .

RESPONSE ON THE TYPE OF VAS

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46%

30%

4%

12%5%

3%Ring tune

Caller tune

Both caller and ring

WAP

Cricket score

others

Interpretation:

On the basis of the previous surveys, certain Value added services were mostly

known to the customers.

Again what we found that 46% are interested in using ringtones, 30% are using

and some would like to use caller tunes. And 12 % are wap services.

RESPONSE OF THE NUMBER ONE BRAND IN THE MARKET

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40%

15%30%

13%2%

Airtel

Aircel

Vodafone

Reliance

BSNL

Interpretation:

From the point of view of customers 40% thinks Airtel is the number one player in

the market, 30% thinks Aircel is the number one player. And there perception was based

on the network connectivity and offers .

VISIBILITY OF THE BRAND

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43%

34%

13%

5% 5%

Airtel

Vodafone

Aircel

Reliance

BSNL

Interpretation:

According to the customers the most visible brand is Airtel with a score of 43%

then closely followed by the Vodafone. And represents little share of 5%.

SOURCE OF INFORMATION

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48%

12%8%4%

28%

Retalier

SMS

Television

Posters

Word of mouth

Internet

Interpretation:

Customers were asked about the source of information for offers. And it was

found that retailers are the main source of information for customers and 28% informed

that their source of information is word of mouth.

RESPONSES TO THE LAUNCH OF GSM

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33%

67%

YES

NO

Interpretation:

A question was asked to check the awareness among the customers about the

launch of GSM in Chennai .It was found that 67% of people knew about the launch of

Reliances GSM in Chennai.

SOURCE OF INFORMATION ABOUT THE VAS SERVICES

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44%

34%

14%8%

SMS

Television

Posters

Others

Interpretation:

It was found that the customers come to know about the VAS mainly from SMS

and television.

SURVEY ON VALUE ADDED SERVICES:

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Since, Value added service contribute around 5-10 % of the revenue for the

reliance’s CDMA. An analysis of the VAS services of all the operators was done and it

was concluded that the Vodafone is the number one player as far as value added services

are concerned. A short survey was done to know the response of the customers who uses

VAS.

1 2 3 4 5 6 7 8 9 10 110.00

10.00

20.00

30.00

40.00

50.00

60.00

Series1

A questionnaire was administered on 30 customers out of which 54.5% uses caller

tunes,13.64 uses ringtones, 18.18 downloads wall papers,4.54 love messages,4.54

finance,13.64 wap services. This data helped us to frame a questionnaire in order to

check the awareness among the reliance retailers. Again, questionnaire was

administered, the results are as under:

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AWARENESS SURVEY

On a visit to 19 R world stores and retail outlets which were allocated to us,

summary of the same is as under:

This question was based on subscription of caller tunes, price of caller tunes,

and unsubscription of caller tunes. Out of 19 outlets 7 fully informed us about

activation,6 partially informed,6 couldn’t inform.

FULLY INFORMEDPARTIALLY INFORMEDNOT INFORMED

Out of 19 retailers 2 said that leaflet is available and rest 18 said that leaflet are

not available.

Yes - 15.79%No - 84.21%

Next part was to know the number one brand in terms of the retailers, why it was

chosen as number, important features of the particular brand, what type of customers uses

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which connection, profitable brand of customers and most visible brand. Some of the

findings are:

RANK OPERATORS

network(65%)offers(15)network and offers(10%)customer service(10%)

65% informed that Airtel is number one because of network 20% said offers 10 % informed about customer service.

90% said that all brands give same profit to retailers.

1. Airtel

2. Aircel

3. Vodafone

4. Reliance

5. BSNL

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This table briefs us about the type of operators and the type of customers using them

AIRTEL ALL TYPES OF CUSTOMERS

VODAFONE STUDENTS

AIRCEL YOUNGTERS

RELIANCE EMPLOYERS, BUSINESSMEN.

BSNL LOW INCOME GROUP

The most visible brand is in this order:

Visibility was calculated as:

Fruit board = 20 points

Posters = 10 points

Leaflets = 5 points.

Out of the survey the most popular and sellable plans are:

1. Airtel

2. Vodafone

3. Aircel

4. Reliance

5. BSNL

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Life time of all players

Neeyum Naanum Pack of Aircel,

RC 49 of Airtel.

SURVEY ON RELIANCE HELLO

A survey was conducted among 50 retailers who sell Reliance Hello

Wireless Landline Phone.

No of customers visiting everyday on an average to enquire about

Reliance Hello: 54% retailers said 5 to 10 customers enquire everyday.

29%

13%

54%

4%

0 to 3

3 to 5

5 to 10

10 to 15

15 to 20

Customers who actually buy per month: 54% retailers said 0 to 3 customers buy Reliance Hello

everyday.

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54%38%

4%4%

0 to 3

3 to 5

5 to 10

10 to 15

Do you inform about the necessity of recharging within six months.

About 70% retailers said yes while about 30% retailers said no.

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

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Do you convey information about plans and tariffs?

About 91% retailers said yes while about 9% retailers said no.

Yes no0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advantages of Reliance Hello as told by retailers to customers

34% retailers said network, 25% said cheap.

Page 36: an analysis of  pricing and promotion of reliance's gsm launch

34%

25%

9%

6%

6%

6%

3%3%

3% 3%

NetworkCheapLife time validityWirelessPrepaidNoNo rentVoice ClarityHandset Replacement99p/3 min

Models available

67% retailers said they have normal model available, 25% said they have both data

and normal model.

67%

25%

8%

Normal

Both

Data

Page 37: an analysis of  pricing and promotion of reliance's gsm launch

Stock available

48% retailers said they always keep 3 to 5 sets in their shop, 39% retailers said they always keep

3 to 5 sets in their shop.

39%

48%

13%

1 to 33 to 5 5 to 8

Page 38: an analysis of  pricing and promotion of reliance's gsm launch

Reason for buying Reliance Hello

79% retailers said customers buy Hello to use it for incoming only, 13% retailers said customers

buy for both incoming and outgoing.

79%

13%

4%4%

IncomingIncoming & outgoingIncoming & Cheap call ratesFree rental

Page 39: an analysis of  pricing and promotion of reliance's gsm launch

Technical problems

52% retailers said there are no issues in the set, 30% retailers said there is battery problem in the

set.

52%

30%

9%

9%4%

No issuesBatteryTowerMiscellenousButton

Page 40: an analysis of  pricing and promotion of reliance's gsm launch

SUGGESTIONS-3.2

1. The company should promote their Value added services not only the customers

but also to their retailers.

2. Brand value of the reliance is low among retailers. To improve that heavy

BTL type of promotions is needed.

3. Relations with the retailers have to be improved, which will help the company

to reduce their promotional cost.

4. Visibility of the brand is still not up to the mark when compared with the

competitors like Airtel and Vodafone.

5. Customers are price sensitive especially about local calls. So, in order to the

increase the market share further rates could be decreased.

Page 41: an analysis of  pricing and promotion of reliance's gsm launch

6. Distribution network should be improved because many retailers were unaware

of the display contest or they have not received the necessary material like

banners, posters.

7. The company should improve their network connectivity as it is the most

important criterion which retains a customer.

CONCLUSION-3.3

Reliance provides best life time offer when compared to other offers

available in the market. Visibility of the reliance is still less when compared to other

players like Airtel and Vodafone. It is also concluded that the promotion for the

launch of GSM is a success as majority of the customers knew about it. Training of

the staff is very necessary as it would help n generating more revenue for the

Reliance.

TAKE AWAYS

Page 42: an analysis of  pricing and promotion of reliance's gsm launch

An overview of the telecom industry.

Knowlege about the launch of a product.

Exposure to various aspects of marketing like promotions, pricing

and distribution.

Enhancement of communication skills.

Knowledge of competitive strategies and didtribution networks.

QUESTIONNAIRE FOR CUSTOMER’S RESPONSE

1. Which connection are you using?

2. What you would prefer?

If local call rate is decreased by 25 p & STD is increased by 25 p.

If local call rate is increased by 25 p & STD is decreased by 25p but sms is decreased by 50p. No change in the call rates but sms is decreased by 50paisa

3. Do you use booster pack? If yes which booster pack?

4. Out of the following value added services which you use or would like to use

Caller tunes Cricket score

Wap services. Ring tunes

Stock portfolio

5. How much you would like to pay if average rate for VAS is Rs30/month

6. As per you which is the most visible brand?

Page 43: an analysis of  pricing and promotion of reliance's gsm launch

Airtel Aircel Reliance

Vodafone Bsnl

7. Which is the number one brand? And why?

8 . How you come to know about offers?

Sms Internet Retailers

Word of mouth Television Posters

9. Do you know reliance has launched GSM ? If yes how?

10. By which medium you come to know about VAS services

11. Out of the following which plans you would prefer:

QUESTIONNAIRE FOR RETAILER’S RESPONSE

1. Which plan of the brand do you recommend? And why?

2. Rank the following brands on Overall performance.

Airtel Vodafone

Aircel BSNL

Reliance

3. Why you have chosen this as a number one brand?

PLAN2

MRP 75-80

VALIDITY NIL.

TALKTIME 0

LOCAL CALLS CHARGES

.JODI NO. .10Rs/min

TO OTHERS .99Rs/min

STD CALL CHARGES

TO SAME NETWORK PROVIDER

1 Rs/min

TO OTHER

OPERATORS

1.5 Rs/min

SMS CHARGES

JODI NUMBER .10 Rs/sms

OTHER LOCAL .25 Rs/sms

NATIOANL .50Rs/sms

INTERNATIONAL 5Rs/sms

PLAN1

MRP 45-50

VALIDITY LIFETIME

TALKTIME 20

LOCAL CALLS CHARGES

SAME NETWORK PROVIDER

.30Rs/min

TO OTHERS .60Rs/min

STD CALL CHARGES

TO SAME NETWORK PROVIDER

1 Rs/min

TO OTHER

OPERATORS

1 Rs/min

SMS CHARGES

SAME NETWORK PROVIDER

1 Rs/min

OTHER LOCAL 1 Rs/min

NATIOANL 1 Rs/min

INTERNATIONAL 5Rs/sms

PLAN3

MRP 95-99

VALIDITY 10

TALKTIME 30 days

LOCAL CALLS CHARGES

.

ALL .99Rs/min

STD CALL CHARGES

TO SAME NETWORK PROVIDER

1.5 Rs/min

TO OTHER

OPERATORS

1.5 Rs/min

SMS CHARGES

SAME NETWORK PROVIDER

.50Rs/sms

OTHER LOCAL .50Rs/sms

NATIOANL .50Rs/sms

INTERNATIONAL 5Rs/sms

Page 44: an analysis of  pricing and promotion of reliance's gsm launch

4. What are important features of the above brands?

5. Which service provider has cheapest call rates?

6. Which brand is profitable for you?

7. Do you have any issue with the above brands? If Yes, what are they?

8. Which brand gives best value pack for customers? And which pack?

9. Which plan is most saleable?

10. What type of customers choose the following brands

Airtel Vodafone

Aircel BSNL

Aircel

11. Rank the Visible brands (Total score) No. of signage boards , Posters, Leaflets

Airtel Vodafone

Aircel BSNL

Reliance

12. Any display contest organized for retailers by any of the brands?

13. Any special offers provided by the companies for the retailers?

*signage boards =20 points

Posters =10 points

Leaflets =5 points (Total score=35)

BIBLIOGRAPHY

Kotler.P.(2007), 12TH Edition,Marketing management, Pearson publication New

Delhi.

Business research methods, ICFAI Centre for management

Research,Hyderabad.

Ronald A.,(2003)Marketing your business,1st Edition, Pushp Print Services,New

Delhi.

Page 45: an analysis of  pricing and promotion of reliance's gsm launch

Bitner, J. and Booms, B. (1981) Marketing strategies and organizational

structures for service firms, in Donnelly, J. and George, W. Marketing,

American Marketing Association, Chicago, 1981.

www.ICOAI.com

www.indiacellular.com

www.airtel.in

www.vodafone.in

www.aircel.com