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SUMMER INTERNSHIP PROGRAM REPORT
On
STUDY OF MARKETING MIX ANALYSIS OF 4G LTE OF
BHARTI AIRTEL LTD.
SUBMITTED TO
MIT PUNEs
MIT SCHOOL OF TELECOM MANAGEMENT
BY
Ravi Siddh
PRN: 12084
Batch : 2012-2014
IN PARTIAL FULFILLMENT OF
POST GRADUATE DIPLOMA IN MANAGEMENT
(PGDM)
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DECLARATION
I, Mr. Ravi siddh
Hereby declare that this project report is the record of authentic work carried out
by me during the period from 23/04/2013 to 22/06/2013 and has not been
submitted earlier to any University or Institute for the award of any degree /
diploma etc.
Name of the student RAVI SIDDH
Date
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Company Letter Head
Certificate
This is to certify that the Summer Internship project titled
. is a bonafide and sincere work of Mr. / Ms
It is original and has been made under my supervision in partial
fulfillment of the requirement for the award of PGDM
(Systems/Marketing/Finance) for the period from .. to . I am
pleased to say that his performance during this period was .
..
Company Guide
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Certificate
This is to certify that Mr. / Ms of MIT PUNEs MIT School of Telecom
Management (MITSOT)has successfully completed the project work titled------------------
------------------in partial fulfillment of requirement for the completion of PGDM program
as prescribed by the MITSOT.
This project report is the record of authentic work carried out by him / her during the
period from ------------- to ---------------. He / She has worked under my guidance .
Name: Dr. Milind Pande
Faculty Mentor Project Director
MITSOT MITSOT
Date:
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Acknowledgments
I would like to acknowledge all of my family members to making me avail this opportunityand my whole heartedly gratitude to all the staff teaching or non-teaching involved directly or
indirectly in making my project successful.
I would like to thank the following contributions in preparing this report:
Mr. Manish Mishra
Project Manager
(Airtel)
Selected me and made me
available with all the available
resources and providedvaluable insights about future
findings.
Mr. Tahir jariwala Company Guide
(Airtel)
Mentoring throughout theproject through day to day
discussions,providing valuable
insights to the different issues
and helping to come out withmajor proposals.
Mr. Ram Sharma Channel partner(Airtel)
Provided the resources and
helped me at the initial levelof my SIP.
Mr. Devendra singh Channel partner
(Airtel)
Provided the trainings and
resources from starting to theend helped in getting out of all
the situations, shared all his
experiences helped me duringmy SIP.
Prof. Rajashri kadamFaculty
Marketing Department
Guided me from the very
beginning by helping tochoose the project title,explaining the significance
and scope of the project,
facilitating all the data feedand overall monitoring.
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Executive Summary
In todays competitive world, it is must for a company to have full information about the opportunities
available in the market before entering into market with a new product. This enables the company to
exploit the full potential of the market & to meet the expectations of the customer. For this purpose, aneffective survey is required.
After going through the complete profile of BHARTI AIRTEL LTD. I caome to know about the services
provided by AIRTEL. It has many vibrant and attractive schemes in comparison with its competitors in
the market. Hence, I have chosen this topic keeping in mind that his survey work will definitely help the
organization in making strategies for marketing and promotion of the products so I have chosen this
topic Marketing Mix Analysis 4G LTE
1) Introduction: Airtel exclusive 4G Data Card admits access the internet with amarvelous speed of 10 to 45 mbps. Airtel 4G gives a truly seamless video experience online with no
buffering and no streaming . Dedicated spectrum for data card, Spectrum is not shared with mobile
customers.
Reliance data card allows you to surf internet on the move. Best suited for bandwidth hungry
applications like rich content, enjoy music downloads, gaming, video chat, live TV and much more at an
outstanding speed of up to 100 Mbps technically with 3G prices.
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1.2 Objectives and Limitations:
Objectives:
To analyze different strategies in detail and find out the adoption timing of all
strategies among existing and new customers requirements so that the ground can be
set for the development of the comprehensive marketing plan for the competition of
Bharti Airtel Limited.
To understand the requirements of different data products in the Pune market,we were
required to connect with the market directly and understand requirements through a
structured questionnaire designed for in-depth interview or survey.
1. To study Marketing Mix effect on Airtel 4G in PUNE City.
2. To carried out SWOT analysis of Airtel 4G in PUNE City.
Limitations:
1. Airtel 4G sim cards are not yet compatible for voice.
2. Up till now It is covering only 70% of Pune.
3. Not of use in rest of the Maharashtra because in Maharashtra; 4G services are available in Pune
only and license for 3G services in Maharashtra-Goa circle is not given to Airtel. So when 4G
customer cross the boundaries of Pune, network directly switch to 2G (128kbps) speed.
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Findings:
1. If any one is not happy with the other services of Airtel like mobile, digital tv, leas lines, or after
sale services and service center response etc, he/she would not like to buy the 4G product by
Airtel and vice versa.2. Airtel is the only player with 4G services in the market; trying to an cash golden period of its
with skimming pricing strategy.
3. Company allocate its seles work to distributers and channel partners with monthly target
formate; if customer ask to the distributers weather it will work across Pune theysay Yes
because their agenda is to complete their monthly target any how. But when customer come to
know that he/she has been cheated he/she would not like to buy any product from Airtel. Its
moreover a companys loss not distributers.
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Research Problem Statement:
The main problem which I found while conducting the survey was lack of network connectivity in
several areas of Pune which was one of the reasons of sales of Airtel 4G could not meet the
expectations of the company.
Scope of the Study:
This sarvay is conducted in Pune city, and tried to cover most of the portion. I kept my target to
SMEs, IT companies, and showrooms etc. This project mainly helped to know how to design strategies
and to develop business for the company.
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Methodology
The methodology used in research is questionnaire based, which is the best way to know about the
overall details of the current market scenario for Airtel 4G.
The questionnaire is prepared by me only during my internship, these questionnaire is prepared on the
basis of my interaction with various corporate customers at various places of Pune.
The questionnaire were basically consist of open ended and closed ended questions so that it was open
for the respondents to give their views, opinion or any other query if they have, which specify to
improvement of customer base in 4G net connection.
Primary data :
Primary data is collected to obtain desired information through structured questionnaire. The primary
data for this project was collected through personal interviews with IT professionals, HRs, and other
decision makers from about 35 companies.
Survey procedure:
Sampling technique :
I have usedNon-probability sampling,(convenience sampling) technique.
Convenience sampling technique:
This method is been used for obtaining data as per the convenience and
because of time constraint of 8 weeks.
The process followed was:
1. Firstly, I differentiated all the companies using or not using any kind of
net connection as I initially assigned as a lead generator for the
company so I collected the data though out my SIP and compiled that
data into excel sheet.
2. The whole data is transferred into SPSS 17.0 .
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Various net connections using by customers
Name of net providers percentageBSNL 14
Reliance net connect 12
Airtel 15
Tata docomo 23
Idea net 16
Vodafone 17
other local net provider 3
14% 10%
12%
30%
20%
11%
3%
various net connections using by customers in
Pune city
BSNL Relience net connect Airtel
Tata docomo Idea net vodafone
other local net provider
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Name of net providers Percentage of
satisfaction
BSNL 14
Reliance net connect 10
Airtel 12
Tata docomo 30Idea net 20
Vodafone 11
other local net providers 3
Source:Fictitious data, for illustration purposes only
Profile of the Company and Industry Overview
Bharti Airtel Limited is a leading global telecommunications company with operations in 20 countries
across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 4 mobile
service providers globally in terms of subscribers. In India, the company's product offerings include 2G,
3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV,
DTH, enterprise services including national & international long distance services to carriers. In the rest
of the geographies, it offers 2G, 3G wireless services and mobile commerce. Bharti Airtel had over 269
million customers across its operations at the end of March 2013.. The businesses at Bharti Airtel have
been structured into three strategic business units.
1) Mobile services:-
Bharti Airtel provides service in 23 circles across all over INDIA and hence is the first private
mobile service operator to have an all INDIA presence.
2) Broadband & Telephone services:-
Bharti Airtel provides broadband and telephone services across 90 cities all over INDIA.
3) Enterprise services:-
Enterprise service is classified into carriers (long distance services) and corporates that take care
of international and provide services to corporate people.
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Business divisions
Mobile Services.
Telemedia Services.
Airtel Business.
Digital TV Services.
Mission :
Will meet the mobile communication needs of our customer through:
Error free service delivery
Innovative product and service
Cost efficiency
Unified messaging solution
Product profile
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Features of product :
Fastest Internet Device, Also Supports 4G Network Easy to install Through Inbuilt Mobile Partner Single Click connect / disconnect Elegant design and look Speed upto 100 Mbps DL Great Network Strength With 12 months warranty Support any 2G 3G 4G Networks MicroSD Upto 32GB slot for using the device like pen drive External Antenna slot
When initially connected to Desktop / Laptop it will install the Mobilepartner software and it will automatically create the network profilebased on the SIM inserted.
A USB 2.0 connector to connect the airtel 4G LTE USB Modem to thelaptop/PC.
LTE network only with USIM. A USIM card slot to insert a USIM in the device
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Undefeated break free speed of 10 to 45 mbps gives the tremendous experience to user.
Large base of loyal Airtel customer 92% active customers.
Weakness :
Low network connectivity.
3G services of Airtel in Maharashtra-Goa circle has stopped by Gov. so when 4G data ends it
switches to 2G (128 kbps) from 40 to 50 mbps.
Opportunity :
Only player in the market with 4G service has good opportunity to create new customer base.
India is competing with world standard in telecom sector.
4G is available only in 4 cites in India, all over India can be the market for 4G.
Threats :
Sampl ing elements:
Population:
In view of scope of research the population was approximately 12000 IT/non-ITcompanies in Pune. I have covered approximately 50 companies in doing the survey.
Samplingframe:The whole SMEs population was impossible to complete because of
time constraint of 2 months so, I have divided the population of 12000 companies into a
sample frame consisting of only IT/non-IT companies in some specific areas Kothrud,
Bavdhan-Khurd, Deccan ,JM road, Tilak road asper my convenience.
Sampling uni t:
The SMEs using Internet leased line or voice services or fixed lines.
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Sample size:
The sample size taken is 50 companies. These companies have given
complete detail on the basis of interview questions and the prepared
questionnaire. Sample size was so small because of time and monetary
constraints.
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ADVERTISING AND SALES PROMOTION
Reliance communication can advertise and promoted his sales by TV. Brands, holdings, giving
advertisement in news papers and TV. channels by the help of celebrities and also promoted sales,
executives.
COMPETITORS
Major competitors in todays market are which gave a proper competition to the Reliance company in
the communication sector are as follows:
IDEA
AIRTEL
TATA INDICOM
VODAFONE
BSNL
Uninor
Name Last Price Market Cap.
(Rs. cr.)
Sales
Turnover
Net Profit Total Assets
BhartiAirtel 261.05 99,134.52 41,603.80 5,730.00 63,559.00
http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/bhartiairtel/BA08http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/bhartiairtel/BA08 -
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Research METHODOLOGY
ANNEXURE
QUESTIONNAIRE
FOR MARKET SURVEY AND PRODUCT PROMOTION OF RELIANCE
POSTPAID
Idea Cellular 80.20 26,549.96 19,322.33 576.54 23,072.72
Reliance Comm 48.80 10,072.45 11,110.00 156.00 73,068.00
Tata Comm 232.25 6,619.13 4,091.77 171.34 8,087.80
MTNL 37.75 2,378.25 3,368.99 -4,018.45 12,184.20
TataTeleservice 11.15 2,115.37 2,488.44 -517.55 4,237.96
Tulip Telecom 80.15 1,162.18 2,704.81 315.18 2,971.39
http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/ideacellular/IC8http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/reliancecommunications/RC13http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/tatacommunications/TC17http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/mahanagartelephonenigam/MTNhttp://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/tatateleservicesmaharashtra/TTM01http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/tuliptelecom/TT13http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/tuliptelecom/TT13http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/tatateleservicesmaharashtra/TTM01http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/mahanagartelephonenigam/MTNhttp://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/tatacommunications/TC17http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/reliancecommunications/RC13http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/ideacellular/IC8 -
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NAME OF THE COMPANY _ _ _ _ __ _ _ ___ _ _ _ _ _ _ _ _ _
ADDRESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
CONTACT NO.
HANDLED PERSON __ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _
1) WHAT ARE THE TELECOM SERVICES YOU ARE USING?
RELIANCE AIRTEL IDEA HUTCH OTHER
2) IF OTHER THEN RELIANCE THEN
IS THERE ANY POSSIBILITY FOR OTHER SERVICE PROVIDER?
YES NO
IF RELIANCE THEN WHICH ONE?
PREPAID POSTPAID
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3) DO YOU KNOW ABOUT THE NEW PLANS IN RELIANCE POSTPAID?
YES NO
4) WHICH PLAN ARE YOU USING CURRENTLY AND WHAT IS YOUR BILL?
PLAN - - - - - -
BILL - - - - - - -
5) DO YOU WANT TO TAKE ANY POSTPAID CONNECTION WITH THESE PLANS?
(AFTER TELLING HIM ALL THE PLANS ACCORDING TO HIS USAGE OF PHONE)
YES NO
QUESTIONNAIRE
FOR MARKET SURVEY AND PRODUCT PROMOTION OF
RELIANCE NETCONNECT DATA CARD & USB MODEM
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BOTH
5) WHAT IS YOUR USAGE?
SURFING MORE DOWNLOADING MORE
6) DO YOU WANT TO TAKE ANY ONE WITH THESE PLANS?
(AFTER TELLING HIM ALL THE PLANS ACCORDING TO HIS USAGE OF INTERNET)
YES NO
Objectives of study
To know the satisfaction of the customer toward reliance data card
To find out the perception of the customer to words reliance data cards
To study data card market in pune
Literature Review
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Customer satisfaction is defined as "the number of customers, or percentage of total
customers, whose reported experience with a firm, its products, or its services (ratings)
exceeds specified satisfaction goals In a survey of nearly 200 senior marketing managers, 71
percent responded that they found a customer satisfaction metric very useful in managing
and monitoring their businesses. Within organizations, customer satisfaction ratings can
have powerful effects. They focus employees on the importance of fulfilling customers
expectations. Furthermore, when these ratings dip, they warn of problems that can affect
sales and profitability. . . . These metrics quantify an important dynamic. When a brand has
loyal customers, it gains positive word-of-mouth marketing, which is both free and highly
effective. In researching satisfaction, firms generally ask customers whether their product or
service has met or exceeded expectations. Thus, expectations are a key factor behind
satisfaction. When customers have high expectations and the reality falls short, they will be
disappointed and will likely rate their experience as less than satisfying. For this reason, a
luxury resort, for example, might receive a lower satisfaction rating than a budget motel
even though its facilities and service would be deemed superior in 'absolute' terms. The
importance of customer satisfaction diminishes when a firm has increased bargaining power.
For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry
that is an oligopoly, where only a few suppliers of a certain product or service exist. As such,
many cell phone plan contracts have a lot of fine print with provisions that they would never
get away if there were, say, a hundred cell phone plan providers, because customer
satisfaction would be way too low, and customers would easily have the option of leaving for
a better contract offer. Customer satisfaction, a term frequently used in marketing, is a
measure of how products and services supplied by a company meet or surpass customer
expectation. Customer satisfaction is defined as "the number of customers, or percentage of
total customers, whose reported experience with a firm, its products, or its services (ratings)
exceeds specified satisfaction goals." In a survey of nearly 200 senior marketing managers, 71
percent responded that they found a customer satisfaction metric very useful in managing
and monitoring their businesses.
It is seen as a key performance indicator within business and is often part of a Balanced
Scorecard. In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.
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"Within organizations, customer satisfaction ratings can have powerful effects. They focus
employees on the importance of fulfilling customers expectations. Furthermore, when these
ratings dip, they warn of problems that can affect sales and profitability. . . . These metrics
quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-
mouth marketing, which is both free and highly effective."
Therefore, it is essential for businesses to effectively manage customer satisfaction. To be
able do this, firms need reliable and representative measures of satisfaction.
"In researching satisfaction, firms generally ask customers whether their product or service
has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction.
When customers have high expectations and the reality falls short, they will be disappointed
and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for
example, might receive a lower satisfaction rating than a budget motel even though its
facilities and service would be deemed superior in 'absolute' terms."
The importance of customer satisfaction diminishes when a firm has increased bargaining
power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an
industry that is an oligopoly, where only a few suppliers of a certain product or service exist.
As such, many cell phone plan contracts have a lot of fine print with provisions that they
would never get away if there were, say, a hundred cell phone plan providers, because
customer satisfaction would be way too low, and customers would easily have the option of
leaving for a better contract offer. There is a substantial body of empirical literature that
establishes the benefits of customer satisfaction for firms.
Customer
A customer (also known as a client, buyer, or purchaser) is the recipient of a good, service,
product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable
consideration. Customer may or may not also be a consumer, but the two notions are
distinct, even though the terms are commonly confused. A customer purchases goods; a
consumer uses them. An ultimate customer may be a consumer as well, but just as equally
may have purchased items for someone else to consume. An intermediate customer is not a
consumer at all. The situation is somewhat complicated in that ultimate customers of so-
called industrial goods and services (who are entities such as government bodies,
manufacturers, and educational and medical institutions) either themselves use up the goods
and services that they buy, or incorporate them into other finished products, and so are
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technically consumers, too. However, they are rarely called that, but are rather called
industrial customers or business-to-business customers. Similarly, customers who buy
services rather than goods are rarely called consumers.
Six Sigma doctrine places (active) customers in opposition to two other classes of people: not-
customers and non-customers. Whilst customers have actively dealt with a business within a
particular recent period that depends from the product sold, not-customers are either past
customers who are no longer customers or potential customers who choose to do business
with the competition, and non-customers are people who are active in a different market
segment entirely. Geoff Tennant, a Six Sigma consultant from the United Kingdom, uses the
following analogy to explain the difference: A supermarket's customer is the person buying
milk at that supermarket; a not-customer is buying milk from a competing supermarket,
whereas a non-customer doesn't buy milk from supermarkets at all but rather "has milk
delivered to the door in the traditional British way". A customer may or may not also be a
consumer, but the two notions are distinct, even though the terms are commonly confused. A
customer purchases goods; a consumer uses them. An ultimate customer may be a consumer
as well, but just as equally may have purchased items for someone else to consume. An
intermediate customer is not a consumer at all. The situation is somewhat complicated in
that ultimate customers of so
called industrial goods and services (who are entities such as government bodies,
manufacturers, and educational and medical institutions) either themselves use up the goods
and services that they buy, or incorporate them into other finished products, and so are
technically, consumers too. However, they are rarely called that, but are rather called
industrial customers or business-to-business customers. Similarly, customers who buy
services rather than goods are rarely called consumers. Six Sigma doctrine places (active)
customers in opposition to two other classes of people: not-customers and non-customers.
Whilst customers have actively dealt with a business within a particular recent period that
depends from the product sold, not-customers are either past customers who are no longer
customers or potential customers who choose to do business with the competition, and non-
customers are people who are active in a different market segment entirely. Geoff Tennant, a
Six Sigma consultant from the United Kingdom, uses the following analogy to explain the
difference: A supermarket's customer is the person buying milk at that supermarket; a not-
customer is buying milk from a competing supermarket, whereas a non-customer doesn't buy
milk from supermarkets at all but rather "has milk delivered to the door in the traditional
British way. Tennant also categorizes customers another way, that is employed out with the
fields of marketing. Whilst the intermediate/ultimate categorization is used by marketers,
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market regulation, and economists, in the world of customer service customers are
categorized more often into two classes:
1. An external customer of an organization is a customer who is not directly connected to that
organization.
2. An internal customer is a customer who is directly connected to an organization, and is
usually (but not necessarily) internal to the organization. Internal customers are usually
stakeholders, employees, or shareholders, but the definition also encompasses creditors and
external regulators.
The notion of an internal customer before the introduction of which external
customers were, simply, customers was popularized by quality management writer Joseph
M. Juran, who introduced it in the fourth edition of his Handbook (Juran 1988). It has since
gained wide acceptance in the literature on total quality management and service marketing;
and the customer satisfaction of internal customers is nowadays recognized by many
organizations as a precursor to, and prerequisite for, external customer satisfaction, with
authors such as Tansuhaj, Randall & McCullough 1991 arguing that service organizations that
design products for internal customer satisfaction are better able to satisfy the needs of
external customers.
Building a company around customer satisfaction
In this world of extreme competition, companies with a total focus on customer are going to
be the winner. Companies must understand importance of customer satisfaction and then
build process around it. A satisfied customer will be a loyal customer. There are large offering
of products and services available in the market then why the customer should choose a
given companys product. According to various research and studies it has been confirmed
that consumer will purchase products, which given them maximum perceived value. This
value comes from calculating the cost associated with the emotional level decision like the
brand image, corporate brand, sales personnel image and functional image. This value
converts to total customer cost by including purchase cost, time-energy in evaluation of
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product and intuitive cost.
Companies are able to achieve this state of total customer satisfaction by incorporating
good business practices. These practices are constructed around stakeholders, business
process, resource and organization. Companys stakeholders consist of employees, suppliers,
distributors and customers. Earlier focus has always solely been on shareholders, but now
stakeholders need to be satisfied for shareholders profit. Companies need to define
boundaries of relation with stakeholders as to get the maximum value for every participant.
To ensure maximum value, companies need to develop business processes, which understand
and fulfill customer expectations. This can
be achieved by aligning cross functional teams across critical processes, to create one smooth
flow. Companies need to understand its core competencies and develop them, thereby
successfully managing its resources. Organizational structure, design and policies have to be
suitable to facilitate the introduction of total customer satisfaction culture. Companies
through creating and delivering value can develop total customer satisfaction. Company itself
can be considered as a value chain consisting of primary and secondary activities. Primary
activities consist of inbound materials, operation, delivering finished products,
sales/marketing and servicing clients. Secondary activities consist of functional departments
like technology department, procurement department, human resource and finance
department. This value created is delivered to customer through the distribution channel
under the principle of supply chain management.
Customers in the digital age are much more conscious and aware of their need and wants,
making them a difficult lot to please. Companies run marketing campaign highlighting points
of similarity and difference with competitors products. The art is not at attracting the
customer, but it is at retaining the customer and creating long term relation with them.
Companies usually suffer from churning effect where customers do not make the repurchase.
Companies need to work hard in identifying reasons behind this churning. Once reasons are
identified separate them on the basis of manageable and non-manageable issues and then
work hard at eliminating manageable issues. Companies need to develop policies and
measure at retaining customers along with attracting new customers. This art of retentioncan be achieved through customer relationship management (CRM). In CRM the task is to
develop strong consumer based brand equity, which is done by converting first time buyer to
repeat buyer to a client to a member to advocates and finally to partners. During these
course companies can look forward to offering financial benefits in terms of discount for
frequent buyers or also by association with a social cause. Companies are able to achieve this
state of total customer satisfaction by incorporating good business practices.
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Companys stakeholders consist of employees, suppliers, distributors and customers. Earlier
focus has always solely been on shareholders, but now stakeholders need to be satisfied forshareholders profit. Companies need to define boundaries of relation with stakeholders as to
get maximum value for every participant. To ensure maximum value, companies need to
develop business processes, which understand and fulfill customer expectations. This can be
achieved by aligning cross functional teams across critical processes, to create one smooth
flow. Companies need to understand its core competencies and develop them, thereby
successfully managing its resources. Organizational structure, design and policies have to be
suitable to facilitate the introduction of total customer satisfaction culture.
Companies through creating and delivering value can develop total customer satisfaction.
Company itself can be considered as a value chain consisting of primary and secondary
activities. Primary activities consist of inbound materials, operation, delivering finished
products, sales/marketing and servicing clients. Secondary activities consist of functional
departments like technology department, procurement department, human resource and
finance department. This value created is delivered to customer through the distribution
channel under the principle of supply chain management. Customers in the digital age are
much more conscious and aware of their need and wants, making them a difficult lot to
please. Companies run marketing campaign highlighting points of similarity and difference
with competitors products. The art is not at attracting the customer, but it is at retaining the
customer and creating long term relation with them. Companies usually suffer from churning
effect where customers do not make the repurchase. Companies need to work hard in
identifying reasons behind this churning. Once reasons are identified separate them on the
basis of manageable and non-manageable issues and then work hard at eliminating
manageable issues.
Companies need to develop policies and measure at retaining customers along with
attracting new customers. This art of retention can be achieved through customer
relationship management (CRM). In CRM the task is to develop strong consumer based brand
equity, which is done by converting first time buyer to repeat buyer to a client to a member
to advocates and finally to partners. During these course companies can look forward to
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offering financial benefits in terms of discount for frequent buyers or also by association with
a social cause. Companies are in business to make the profit. Therefore, it has to identify
profitable customers. Profitable customers provide a revenue stream more than the expense
stream on retaining them. And this revenue stream should be higher for a company to have a
competitive advantage. More and more companies are deploying total quality managementapproach across the organization to build and deliver customer satisfaction.
Satisfaction as part of service profit chain
The service-profit chain establishes relationships between profitability, customer loyalty, and
employee satisfaction, loyalty, and productivity. The links in the chain (which should be
regarded as propositions) are as follows: Profit and growth are stimulated primarily by
customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely
influenced by the value of services provided to customers. Value is created by satisfied, loyal,
and productive employees. Employee satisfaction, in turn, results primarily from high-quality
support services and policies that enable employees to deliver results to customers. The
service-profit chain is also defined by a special kind of leadership that emphasizes the
importance of each employee and customer. There are two things about loyalty which are
important to notice. A satisfied customer is not automatically a loyal customer. Its only the
super satisfied customers who become loyal. That is why satisfied is not enough in a world
of abundance which is the situation for many companies today. Add to that the tough reality
that what we considered fantastic last year is what we expect this year. The expectations of
the customer change all the time. If a company wants to maintain the loyalty it has to get
better and better. Xerox found that
customers that rated those 5 (on a 1-5 customer satisfaction ranking) were six times more
likely to repurchase Xerox equipment versus those at the 4 rating level. Xerox coined the
term "apostles" to characterize the customers that rated them a 5. Just as important is to
avoid creating terrorists: customers that become so upset the make it a point to speak out
about the poor service they received at every opportunity. Loyal customers are more likely to
tell others about their loyalty than just satisfied customers. Excited customers tell other
people about their experiences and create ambassadors for the company. They become loyal
customers and they keep returning. The service-profit chain establishes relationships
between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity.
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The links in the chain (which should be regarded as propositions) are as follows: Profit and
growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer
satisfaction. Satisfaction is largely influenced by the value of services provided to customers.
Value is created by satisfied, loyal, and productive employees. Employee satisfaction, in turn,
results primarily from high-quality support services and policies that enable employees todeliver results to customers. The service-profit chain is also defined by a special kind of
leadership that emphasizes the importance of each employee and customer. According to the
HARVARDUniversity, The Service-Profit Chain is a theory and business model evolved by a
group of researchers (James L. Heskett, Thomas Jones, Gary Loveman, W. Earl Sasser, and
Leonard Schlesinger) from HarvardUniversity in the nineties. In their subsequent book: The
Service Profit ChainHow Leading Companies Link Profit and Growth to Loyalty, Satisfaction
and Value, they prove that there is a direct link between superior service experiences,
customer loyalty, and financial performance (profit and growth). The work of Heskett et al
was criticized by a study of Rosa Chun. In an article in the Strategic Management Journal she
argues that they haven't found any hard data supporting the concept. There are two things
about loyalty which are important to notice. A satisfied customer is not automatically a loyal
customer. Its only the super satisfied customers who become loyal. That is why satisfied is
not enough in a world of abundance which is the situation for many companies today. Add to
that the tough reality that what we considered fantastic last year
is what we expect this year. The expectations of the customer change all the time. If a
company wants to maintain the loyalty it has to get better and better.Xerox found that
customers that rated them 5 (on a 1-5 customer satisfaction ranking) were six times more
likely to repurchase Xerox equipment versus those at the 4 rating level. Xerox coined the
term "apostles" to characterize the customers that rated them a 5. Just as important is to
avoid creating terrorists: customers that become so upset the make it a point to speak out
about the poor service they received at every opportunity.
Loyal customers are more likely to tell others about their loyalty than just satisfied
customers. Excited customers tell other people about their experiences and createambassadors for the company. They become loyal customers and they keep returning. The
primary determinant of customer satisfaction is perceived value which the customer has
gained more from the product than he or she thinks it is worth. Value often has an emotional
aspect that makes an experience particularly memorable for the customer. The key to create
value is the ability to bond emotionally with the customers and create emotional wow
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experiences. Underlying this is being very clear about the targeted service concept for the
targeted customers.
Research designDescriptive research design
1) Data for this study is collected from both primary and secondarydate.
The primary date is collected through a structured questionnaire which
was prepared to interview the respondent .the secondary date was
collected through discussion with the other member of the organization
to get general information date was also collected through thereference of the existing customers.
2) With the help of the date collected from both primary and secondary
sources the whole research is done the field .the date collected through
questionnaire are analyzed in details and divided in to various categories
of preference and conclusion are drawn on the possible changes are
cause for distribution process and market share is given based on the
research study.
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The schemes of RELIANCE COMMUNICATION are better in comparison to other.
RELIANCE COMMUNICATION CDMA has a facility of Auto Roaming.
Better Internet plan compare to other.
Better roaming plan.
RELIANCE COMMUNICATION have strong customer segment in corporate.
Lacking in promotional activity.
billing problem
Strong scheme for postpaid plan.
Classic which is new mobile manufacturer for RELIANCE have to face many problems related
to mobile set.
GRAPHICAL REPRESENRATIONOF THE AREAS VISITED
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OBSERVATIONS-
In CHINCHWAD area mostly people believe on BSNL because they get some good facilities there andthey dont want to change their mindsets about BSNL .They are having an collection center of BSNL in
chinchwad so this is very easy to themto pay the bills but Reliance have their web world in PIMPRI
and that is too far from there and no regular collection of bills so Reliance needs to think about that.
Reliance22%
Airtel23%
Idea17%
BSNL30%
Others8%
CHINCHWAD
Reliance Airtel Idea BSNL Others
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OBSERVATIONS -In PIMPRI there is a big competition. There are many collection centers there
Reliance, Airtel, Hutch are there but Reliance is doing well there.
Reliance26%
Airtel21%
Idea11%
BSNL28%
Others
14%
PIMPRI
Reliance Airtel Idea BSNL Others
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OBSERVATIONS-
In BHOSARI people need CUG connections most and for that they prefer Idea and Airtel because they
are also having good call rates for STD calls in CUG plans.
For non CUG plans they prefer BSNL because they are getting broadband connection on low rates also
Reliance
27%
Airtel
8%
Idea
19%
BSNL
30%
Others
16%
MIDC BHOSARI
Reliance Airtel Idea BSNL Others
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OBSERVATIONS-
In INDRAYANI NAGAR industrial area the main problem is related with the billing.There is no
collection cernter here they are in PIMPRI & NIGDI and the distance is 5 km from here
Reliance27%
Airtel11%
Idea19%
BSNL31%
Others
12%
INDRAYANI NAGAR
Reliance Airtel Idea BSNL Others
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OBSERVATIONS-
ALANDI is very far from the main roads NASHIK highway is 8 km away from here so very difficult to
reach there and in MARKEL (place away from Alandi) there is no good coverage.
Reliance25%
Airtel16%
Idea20%
BSNL28%
Others
11%
ALANDI
Reliance Airtel Idea BSNL Others
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OBSERVATIONS-
It is situated on old Bombey-Pune highway so there is good coverage and Reliance post paid is doing
good here.
PROMOTIONAL WORK
Sales promotion is one of the four aspects of promotional mix. (The other three parts of the
promotional mix are advertising, personal selling, and publicity/public relations.) Sales promotions
are non-personal promotional efforts that are designed to have an immediate impact on sales. Media
Reliance26%
Airtel11%
Idea17%
BSNL31%
Others15%
MIDC LANDEWADI
Reliance Airtel Idea BSNL Others
http://en.wikipedia.org/wiki/Promotional_mixhttp://en.wikipedia.org/wiki/Promotional_mixhttp://en.wikipedia.org/wiki/Promotional_mixhttp://en.wikipedia.org/wiki/Promotional_mixhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Publicityhttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Publicityhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Promotional_mixhttp://en.wikipedia.org/wiki/Promotional_mix -
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and non-media marketing communications are employed for a pre-determined limited time to
increase consumer demand, stimulate market demand or improve product availability. Examples
include:
coupons
discountsand sales, includingBlue Cross Sale
contests
point of purchasedisplays
rebates
free samples(in the case of food items)
gifts and incentive items
free travel, such as free flights
Sales promotions can be directed at thecustomer,sales staff, ordistributionchannel members (such
asretailers). Sales promotions targeted at theconsumerare called consumer sales promotions. Sales
promotions targeted at retailers and wholesale are called trade sales promotions. Some sale
promotions, particularly ones with unusual methods, are consideredgimmickby many.
Under sales promotion I have done a survey for the web world franchisee and for that I have visited
some areas which are as follows-
F.C.ROAD
J.M.ROAD
BHANDARKAR ROAD
KARVE ROAD
M.G.ROAD
BOOTEE STREET
EAST STREET
VIMAN NAGAR
http://en.wikipedia.org/wiki/Couponhttp://en.wikipedia.org/wiki/Couponhttp://en.wikipedia.org/wiki/Discounts_and_allowanceshttp://en.wikipedia.org/wiki/Discounts_and_allowanceshttp://en.wikipedia.org/wiki/Blue_Cross_Salehttp://en.wikipedia.org/wiki/Blue_Cross_Salehttp://en.wikipedia.org/wiki/Blue_Cross_Salehttp://en.wikipedia.org/wiki/Contesthttp://en.wikipedia.org/wiki/Contesthttp://en.wikipedia.org/wiki/Point_of_purchasehttp://en.wikipedia.org/wiki/Point_of_purchasehttp://en.wikipedia.org/wiki/Rebate_(marketing)http://en.wikipedia.org/wiki/Rebate_(marketing)http://en.wikipedia.org/wiki/Free_samplehttp://en.wikipedia.org/wiki/Free_samplehttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Wholesalershttp://en.wikipedia.org/wiki/Wholesalershttp://en.wikipedia.org/wiki/Gimmickshttp://en.wikipedia.org/wiki/Gimmickshttp://en.wikipedia.org/wiki/Gimmickshttp://en.wikipedia.org/wiki/Gimmickshttp://en.wikipedia.org/wiki/Wholesalershttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Free_samplehttp://en.wikipedia.org/wiki/Rebate_(marketing)http://en.wikipedia.org/wiki/Point_of_purchasehttp://en.wikipedia.org/wiki/Contesthttp://en.wikipedia.org/wiki/Blue_Cross_Salehttp://en.wikipedia.org/wiki/Discounts_and_allowanceshttp://en.wikipedia.org/wiki/Coupon -
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KALYANI NAGAR
KOREGAON PARK
I have distributed the pamplates, door to door or company to company selling, and have putted stalls
in the HCL carnival on F.C. road in hotel ASHISH PLAZA for two days also.
Research method
1) In this research study both research method were used quantitative
method and as well as qualitative method. The questions and feedback
in the questionnaire were based on the quality and quantity both.
Types of dateThe type of date used in this research was primary and secondary date
both.
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1) Primary datedirect interaction through questionnaire.
2) Secondary date interaction with the other members of the
organization and references by the existing customers
Data collection instruments-
1) The instrument of the collecting data in this research was a
structured questionnaire.
2) The questionnaire was having different qualitative and as well as
qualitative question.
SamplingSampling is the process of selecting unit from a population of interest
so that by studying the sample we can analyze our result back to the
population from which they were chosen. It is a process used in
statically analysis in which a predetermined number of observations
will be taken from a larger population the methodology used to
sample from a larger population will depend on the types of analysis
being performed.
There are two types of sampling
1) Probability sampling- probability sample are selected in such a
way as to be representative of the population. They provide themost valid or credible result because they reflect the
characteristics of the population from which they are selected
2) Non-probability- sampling- as they are not truly representative,
non-probability samples are less reliable then probability sample
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.however a research may not be able to obtain a random or stratified
sample, or it may be too expensive. A research may not care about
generalizing to a larger population. The validity of non-probability
sample can be increased by trying to approximate random selection
and by eliminating as many sources of bias as possible.
Sampling technique
Random selection sample technique was used to collect the date of
100 respondents.
Sampling unit-
SMEs, SOHO, student showroom and shopkeepers were there in
sampling unit.
Sampling size-
The sample size was 100 .in it I include SMEs, small offices and home
offices showroom and shopkeepers.
.
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Research limitations-
1) The study was restricted to only those clients who were related to
reliance communication products.
2) The study was confined within specific regions of pune city only.
3) The sample size was limited so the results obtained from the
study may not be generalized for the whole population.
4) The time period of the study was not sufficient to measure the
consumer response effectively and reach to a more valid
conclusion
5) Many of the respondents many not have given the correct
information due to personal bias
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Reliance57%
Airtel4%
TTSL37%
HUTCH1%
OTHER1%
CDMA Market Share
Reliance Airtel TTSL
HUTCH STL
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Reliance3%
Airtel31%
Hutch22%
Idea12%
BSNL22%
MTNL2%
Spice2%
BPL1%
Aircel5%
GSM Market Share
Reliance Airtel Hutch
Idea BSNL MTNL
Spice BPL Aircel
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Reliance32%
BSNL35%
TATA25%
SIFY8%
INTERNET PROVIDERS
Reliance BSNL TATA SIFY
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Implementation of the study
1. First for cooperate firm: the study can be useful for both the organization
because by this study the organization can identified what different facility
the other organization is provided.
2. Customer: customer can find out what is the difference between the
organizations.
3. For student: student can use this study for making their reports on a similar
topic.
Findings, Suggestions & Conclusions
Findings
Both Airtel and Reliance subscribers prefer to use prepaid connection as
compared to post paid connection as it helps in saving time of paying
monthly bills, easy availability of prepaid connection at every telecom shop.
But Reliance subscribers prefer to use postpaid connection as compared to
Airtel postpaid subscribers.
Majority of subscribers are using Airtel connection from a long period of
time i.e. five to ten years whereas majority of Reliance subscribers are
using it from only past three to five years. Therefore, subscribers are using
Airtel from a long period of time as compared to Reliance subscribers.
Reliance network use to give more attractive voucher ,scheme ,offer than
other network.
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The advertisement of the reliance are more attractive than the airtel
network but few other
Reliance are the major looser in percentage in portability scheme.
celebrity endorsement of the reliance are more better than the airtel
network
Recommendations
Network is the major difference between Airtel and Reliance because
majority of Reliance subscribers are dissatisfied with its network because of
dropped calls so it should improve its network /connectivity and provide
un-interrupted communication coverage for the mobile phones through
their network to increase its subscriber base.
Reliance advertisements are more attractive to the eyes of the people as
compared to Airtel. Thus, Airtel should add more creative content in its
advertisements so that it catches the attention of large number of people.
Though, Airtel and Reliance both gives promotional offers on their
respective connections to increase its sales but more schemes are offered
by Reliance that is why Airtel should also offer more promotional schemes
like unlimited messages, full talk time etc. on continuous basis in order to
capture a large number of the market .
Both Airtel as well as the Reliance subscribers have complained about the
unsolicited calls (like promotional calls for various products of different
companies) they receive from different companies due to their data
provided by the cell phone service providers to different companies.
Subscribers who are not interested in getting such calls get frustrated when
they receive such calls. Thus, permission should be taken before providing
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their data to any company or such calls should be stopped when any
subscriber makes a request for it. Otherwise, there are chances that the
company might lose its many subscribers.
Access to the customer care department of Reliance should be improvedbecause some of its subscribers have to call many times or have to hold the
call for a longer period of time in order to talk to the customer care
representative. As cellular industry is a service industry where the service
provided by them is intangible in nature and itsthe people of the service
company who add tangibility to the services provide by them. Thus,
customer care representatives should be helpful, respond to the queries
and complaints of the subscribers about the service issues on time and in a
proper manner.
Both Airtel as well as Reliance should decrease their value added services
charges so that large number of subscribers can activate them on their
mobile because large number of subscribers do not use these services due
to their high charges.
Reliance should take proper steps or maintain proper records so that no
incorrect bill is dispatched to any of its postpaid connection user. It creates
a negative image of the company in the minds of the subscribers and they
might switch to any other cell phone service provider.
Finding and interpretation
Both Airtel and Reliance subscribers prefer to use prepaid connection as
compared to post paid connection as it helps in saving time of paying
monthly bills, easy availability of prepaid connection at every telecom shop.
But Reliance subscribers prefer to use postpaid connection as compared to
Airtel postpaid subscribers.
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Majority of subscribers are using Airtel connection from a long period of
time i.e. five to ten years whereas majority of Reliance subscribers are
using it from only past three to five years. Therefore, subscribers are using
Airtel from a long period of time as compared to Reliance subscribers.
Reliance network use to give more attractive voucher ,scheme ,offer than
other network.
The advertisement of the reliance are more attractive than the airtel
network but few other
Reliance are the major looser in percentage in portability scheme.
celebrity endorsement of the reliance are more better than the airtelnetwork
Suggestion
1. This study has been done in a narrow perspective taking on the 150respondent sample, first it is suggested to take large sample size so that
more appropriate result can be obtain.
2. The study has been done in pune, so it is suggested that other cities can
also be included to get more appropriate result.
3. In this study only two organizations are compare that is Reliance and
Airtel. The study can be some more company can be included so that the
best out of those can be found out.
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Conclusion
India is huge market and none of service providers can dare to ignore
its potential. Thats why Indian mobile service provider industry is
growing leap and bounce for the last decade. Services providers are
now willing to provide varies facilities like entertainment (music,
video etc.) and even banking also. A drastic change has came in the
industry along with expanding its base in subscribers, service
providers are keeping eye not only to offer new facilities but also to
be the first to provide it.
In this changing landscape the winner will be the one who
understands consumers need focusing on usability and actually giving
control back to user. The looser will be one that focus on overly
technical product differentiation that the majority of consumer will
not understand and therefore not use it. Future strategy which
makes one to be leader in the market are more competitive tariff
plans should be launch. More VAS should be provided. Moreover,focus should also be on the rural market as this market has also
provides a large subscriber base.
Subscribers are the lifeblood to the cellular operators. Further, due
to the present competition among the operators, they need to
improve their services. Therefore, the industry players need to
consider demands and satisfactions from their subscribers in
ensuring them from churning to another operator. By reacting
proactively towards the demands and strive for customer
satisfactions, cellular operators can be competitive against their
competitors.
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There exists a strong competition between Airtel and Reliance.
Though both of them provide more or less the same services but still
a majority of subscribers prefer to use Airtel as compared to Reliance
for the reasons that have been already discussed above and that
makes Airtel a market leader and different from other cell phone
service providers. Therefore, in order to increase its market share
Reliance should provide much better cellular services in order to
cover a large subscriber base so that it becomes famous not only for
its creative advertisements but also for its cellular services.
BIBLIOGRAPHY
WEBSITES:\
WWW.Reliancecommunication.com
www.google.com
www.altavista.com
BOOKS PREFFERED:
http://www.reliancecommunication.com/http://www.reliancecommunication.com/http://www.google.com/http://www.google.com/http://www.altavista.com/http://www.altavista.com/http://www.altavista.com/http://www.google.com/http://www.reliancecommunication.com/ -
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Marketing Management- Philip Kotler
Marketing Management- RajanSaxena
NEWS PAPERS:
THE ECONOMIC TIMES
THE TIMES OF INDIA