bsnl synopsis

7/28/2019 bsnl synopsis

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CCOONNTTEENNTTSS

CCHHAAPPTTEERR--11

COMPANY POROFILE

BRIEF HISTORY

ORGANISATION STRUCTURE

PERFORMANCE PRODUCTS/SERVICES

PROBLEM FACED

CCHHAAPPTTEERR--22

INTRODUCTION OF THE PROJECT

INTRODUCTION

OBJECTIVE OF THE PROJECT

SCOPE OF THE PROJECT

RESEARCH METHADOLOGY

- SOURCE OF DATA

- TOOLS OF ANALYSIS

- RESEARCH DESIGN

- RESEARCH PROCESS


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CCHHAAPPTTEERR--33

FINDING& ANALYSIS

CCHHAAPPTTEERR--44

CONCLUSION & SUGGESTION

CHAPTER 5

BIBLIOGRAPHY

CHAPTER 6

QUESTIONAIRE


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EXECUTIVE SUMMARY

The project is an extensive report on how the BSNL Company

markets its strategies and how the company has been able in tackling the

present tough competition and how it is scooping up by the allegations of the

quality of its products. The report begins with the history of the products and

the introduction of the BSNL Company. This report also contains the basic

marketing strategies that are used by the BSNL Company of manufacturing

process, technology, production policy, advertising, collaboration, export

scenario, future prospect and government policies. The report includes some

of the key salient features of market trend issues.

In todays world of cutthroat fierce competition, it is very essential to

not only exist but also to excel in the market. Todays market is enormously

more complex. Hence forth, to survive in the market, the company not only

needs to maximize its profit but also needs to satisfy its customers and should

try to build upon from there.


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CHAPTER -1

COMPANY PROFILE: -

Bharat Sanchar Nigam Ltd. formed in June, 2011, is World's 7th largest

Telecommunications Company providing comprehensive range of telecom services in

India: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service,

MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has

become one of the largest public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing on

improving it, expanding the network, introducing new telecom services with ICT

applications in villages and wining customer's confidence. Today, it has about 47.3

million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM

Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations,

480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602

Districts, 7330 cities/towns and 5.5 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to

bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator

in the country to beat its reach with its wide network giving services in every nook &

corner of country and operates across India except Delhi & Mumbai. Whether it is

inaccessible areas of Siachen glacier and North-eastern region of the country. BSNL

serves its customers with its wide bouquet of telecom services.


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BSNL is numerous Uno operator of India in all services in its license area. The

company offers vide ranging & most transparent tariff schemes designed to suite

every customer.

BSNL cellular service, CellOne, has more than 17.8 million cellular customers,

garnering 24 percent of all mobile users as its subscribers. That means that almost

every fourth mobile user in the country has a BSNL connection. In basic services,

BSNL is miles ahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85

per cent share of the subscriber base and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers

who access Internet through various modes viz. Dial-up, Leased Line, DIAS, and

Account Less Internet (CLI). BSNL has been adjudged as the NUMBER ONE ISP in

the country.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP

infrastructure that provides convergent services like voice, data and video through the

same Backbone and Broadband Access Network. At present there are 0.6 million

DataOne broadband customers.

The turnover, nationwide coverage, reach, comprehensive range of telecom services

and the desire to excel has made BSNL the No. 1 Telecom Company of India.


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Organization Chart of BSNL:


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Revenue Chart:

The Department of Telecom operations now known as BSNL has shown

sustained growth in the last 15 years. The growth rate in 2007-2008 was

13.86%.

Capital Investment Chart:

Annual investment in the telecom service sector was Rs. 86,720 crore in

2007-08 as against Rs. 71, 674 crore in 2010-2005, registering a growth of

21%. The total investment in the telecom services sector reached Rs.

200,660 crore in 2007-08, up from Rs. 178,831 crore in the previous fiscal.


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The present turnover of BSNL is more than Rs.351,820 million (US $ 8 billion) with

net profit to the tune of Rs.99,390 million (US $ 2.26 billion) for last financial year.

The infrastructure asset on telephone alone is worth about Rs.630,000 million (US $

14.37 billion).

BSNL plans to expand its customer base from present 47 million lines to 125 million

lines by December 2008 and infrastructure investment plan to the tune of Rs. 733

crore (US$ 16.67 million) in the next three years.

.

When it comes to connecting the four corners of the nation, and much beyond, one

solitary name lies embedded at the pinnacle - BSNL. A company that has gone past

the number games and the quest to attain the position of a leader. It is working round

the clock to take India into the future by providing world class telecom services

for people of India. BSNL is India's no. 1 Telecom Service provider and most trusted

Telecom brand of the Nation.


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Driven by the very best of telecom technology from chosen global leaders, it

connects each inch of the nation to the infinite corners of the globe, to

enable you to step into tomorrow.

Here is an overview of the World Class services offered by the BSNL:

Basic Telephone Services

The Plain old, Countrywide telephone Service through

32,000 electronic exchanges. Digitalized Public Switched

Telephone Network (PSTN) with a host of Phone Plus value

additions.

BSNL launched Data One broadband service in January 2005

which shall be extended to 198 cities very shortly. The service

is being provided on existing copper infrastructure on ADSL2

technology. The minimum speed offered to the

customer is 256 Kbps at Rs. 250/- per month only.

Subsequently, other services such as VPN, Multicasting,

Video Conferencing, Video-on-Demand, Broadcast

application etc will be added.

Keeping the global network of Networks networked, the

countrywide Internet Services of BSNL under the brand name

includes Internet dial up/ Leased line access, CLI
http://www.sancharnet.in/http://bsnl.co.in/service/dataone.htmhttp://bsnl.co.in/service/internet.htmhttp://bsnl.co.in/service/telephone.htmhttp://www.sancharnet.in/http://bsnl.co.in/service/dataone.htmhttp://bsnl.co.in/service/internet.htmhttp://bsnl.co.in/service/telephone.htmhttp://www.sancharnet.in/http://bsnl.co.in/service/dataone.htmhttp://bsnl.co.in/service/internet.htmhttp://bsnl.co.in/service/telephone.htmhttp://www.sancharnet.in/http://bsnl.co.in/service/dataone.htmhttp://bsnl.co.in/service/internet.htmhttp://bsnl.co.in/service/telephone.htmhttp://www.sancharnet.in/http://bsnl.co.in/service/dataone.htmhttp://bsnl.co.in/service/internet.htmhttp://bsnl.co.in/service/telephone.htm


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based access (no account is required) and DIAS service, for

web browsing and E-mail applications. You can use your

dialup sancharnet account from any place in India using the

same access no 172233, the facility which no other ISP has.

BSNL has customer base of more than 1.7 million for

sancharnet service.

BSNL also offers Web hosting and co-location services at

very cheap rates.

ISDN

Integrated Service Digital Network Service of BSNL utilizes a

unique digital network providing high speed and high quality

voice, data and image transfer over the same line. It can also

facilitate both desktop video and high quality video

conferencing.
http://bsnl.co.in/service/isdn.htm


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Intelligent Network

Intelligent Network Service (In Service) offers value-added

services, such as:

Free Phone Service (FPH)

India Telephone Card (Prepaid card)

Account Card Calling (ACC)

Virtual Private Network (VPN)

Tele-voting

Premium Rae Service (PRM)

Universal Access Number (UAN) and more

I-Net

India s x.25 based packet Switched Public Data Network is

operational in 104 cities of the country. It offers x.25 x.28

leased, x.28 Dial up (PSTN) Connection) and frame relay

services.
http://bsnl.co.in/service/inet.htmhttp://bsnl.co.in/service/inteligent_network.htmhttp://bsnl.co.in/service/inet.htmhttp://bsnl.co.in/service/inteligent_network.htmhttp://bsnl.co.in/service/inet.htmhttp://bsnl.co.in/service/inteligent_network.htmhttp://bsnl.co.in/service/inet.htmhttp://bsnl.co.in/service/inteligent_network.htmhttp://bsnl.co.in/service/inet.htmhttp://bsnl.co.in/service/inteligent_network.htmhttp://bsnl.co.in/service/inet.htmhttp://bsnl.co.in/service/inteligent_network.htmhttp://bsnl.co.in/service/inet.htmhttp://bsnl.co.in/service/inteligent_network.htmhttp://bsnl.co.in/service/inet.htmhttp://bsnl.co.in/service/inteligent_network.htmhttp://bsnl.co.in/service/inet.htmhttp://bsnl.co.in/service/inteligent_network.htm


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PROJECTS RECENTLY IMPLEMENTED/UNDER DEVELOPMENT

National Internet Backbone of BSNL

Voice over IP

Broadband Services - ADSL & High Speed Internet

Managed Leased Line Network (MLLN)

Access Network - LMDS, DLCs, RLC etc.

Internet Exchange Points - IXP & Internet Data Centers (IDC)

E-Commerce

Telephone

Basic Telephone (Bfone)

Total Number of connections as on 30.04.2008 69593752

WLL (Tarang)

Total Number of connections as on 30.04.2008 45,95,807

Village Public Telephones

Total Number of Telephones as on 31.03.2008 555,325


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Total Number of Public Telephones as on 31.03.2008 28,64,174

STD Stations

Number of STD Stations as on 31.03.200841,915

Transmission Systems as on 31.07.2008

Transmission Systems

Digital

(Route kms) (Route kms)

Coaxial 7,024

Microwave 73,730

UHF 55,130

Optical Fiber 5,80,196

Satellite Based Services (as on 31.07.2008)

MCPC-VSATs 301

IDR Systems (2 Mb/ 8 Mb) 64/17


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Mobile Services

(As on 30.07.2008)

District Headquarters covered - 592

Total number of villages covered - 2,39,021

National Highway covered (Km)- 55,438

State Highway covered (Km) - 41,339

Railway route covered (Km) - 25,730

Total number of connections - 69593752

Customer Care


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Breief history

VISION

"As we spread wings to expand our capabilities and explore new horizons, the

fundamental focus remains unchanged: seek out the best technology in the world and

put it at the service of our ultimate user: our customer."

These are the premise on which BHARAT SANCHAR NIGAM LIMITED has based

its entire plan of action.

BSNL has been at the forefront of technology and has revolutionized

telecommunications with its world-class products and services.

Established in 1985, BSNL has been a pioneering force in the telecom sector. With

many firsts and innovations to its credit, ranging from being the first mobile service in

Delhi, first private basic telephone service provider in the country, first Indian

company to provide comprehensive telecom services outside India in Seychelles and

first govt. sector service provider to launch National Long Distance Services in India.

BSNL had approximately 3.21 million total customers nearly 2.88 million mobile

and 334,000 fixed line customers.

Its services sector businesses include mobile operations in Andhra Pradesh, Chennai,

Delhi, Gujarat, Haryana, Himanchal Pradesh, Karnataka, Kerala, Kolkata, Madhya

Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh

(West) circle. In addition, it also has a fixed-line operations in the states of Madhya

Pradesh and Chattisgarh, Haryana, Delhi, Karnataka and Tamil Nadu and nationwide

broadband and long distance networks.


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BSNL has recently launched national long distance services by offering data

transmission services and voice transmission services for calls originating and

terminating on most of India's mobile networks.

The Company is also implementing a submarine cable project connecting Chennai-

Singapore for providing international bandwidth.

BSNL also manufactures and exports telephone terminals and cordless phones. Apart

from being the largest manufacturer of telephone instruments, it is also the first

telecom company to export its products to the USA.

BSNL Tele-Ventures' strategic objective is

to capitalise on the growth opportunities that the Company believes are available in

the Indian telecommunications market and consolidate its position to be the leading

integrated telecommunications services provider in key markets in India, with a focus

on providing mobile services.

The Company has developed the following strategies to achieve its strategic

objective:

Focus on maximizing revenues and margins;

Capture maximum telecommunications revenue potential with minimum

geographical coverage;

Offer multiple telecommunications services to provide customers with a "one-

stop shop" solution;

Position itself to tap data transmission opportunities and offer advanced

mobile data services;


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Focus on satisfying and retaining customers by ensuring high level of

customer satisfaction;

Leverage strengths of its strategic and financial partners; and

Emphasize on human resource development to achieve operational

efficiencies.

Businesses

BSNL Tele-Ventures current businesses include -

Mobile services

Fixed-line

National and international long distance services

VSAT, Internet services and network solutions

Competitive Strengths

BSNL Tele-Ventures believes that the following elements will contribute to the

Company's success as an integrated telecommunication services provider in India and

will provide the Company with a solid foundation to execute its business strategy:

Nationwide Footprint - approximately 92% of India's total mobile subscribers

resided in the Company's fifteen mobile circles. These 15 circles collectively

accounted for approximately 56% of India's land mass;

Focus on telecommunications to enable the Company to better anticipate

industry trends and capitalize on new telecommunications-related business

opportunities;


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The strong brand name recognition and a reputation for offering high quality

service to its customers;

Quality management team with vision and proven execution skills; and

The Company's strong relationships with international strategic and financial

investors such as SingTel, Warburg Pincus, International Finance Corporation,

Asian Infrastructure Fund Group and New York Life Insurance.

Brand Architecture:

BSNL is working on a complex three-layered branding architectureto:

Create specific brands for each service,

Build sub-brands within each of these services and Use BSNL

as the mother brand providing the group its corporate identity as well as

defining its goal to become a national builder of telecoms infrastructure.

BSNL- The flagship brand for cellular operations all across the country.


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Brand Strategy:

To understand the brand strategy, lets first look at the brand building exercise

associated with BSNLa brand that had to be repositioned recently to address new

needs in the market.

When the brand was launched seven years ago, cellular telephony wasnt a mass

market by any means. For the average consumer, owning a cellular phone was

expensive as tariff rates (at Rs 8 a minute) as well as instrument prices were steep

sometimes as much as buying a second-hand car.

BSNL could have addressed the customer by rationally explaining to him the

economic advantage of using a mobile phone. But Sachdev says that such a strategy

would not have worked for the simple reason that the value from using the phone at

the time was not commensurate with the cost.

Instead of the value-proposition model, we decided to address the sensory benefit it

gave to the customer as the main selling tack. The idea was to become a badge value

brand, he explains.

So the BSNL leadership series campaign was launched showing successful men

with their laptops and in their deluxe cars using the mobile phone. In simple terms, it

meant BSNL was positioned as an aspirational brand that was meant for leaders, for

customers who stood out in a crowd.

Did it work? Repeated surveys following the launch showed that there were three core

benefits that were clearly associated with the brand leadership, dynamism and

performance.


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These were valuable qualities, but they only took BSNL far enough to establish its

presence in the market. As tariffs started dropping, it became necessary for BSNL to

appeal to a wider audience. And the various brand-tracking exercises showed that

despite all these good things, there was no emotional dimension to the brandit was

perceived as cold, distant and efficient.

Sachdev and his team realized that in a business in which customer relationships were

the core this could be a major weakness. The reason? With tariffs identical to

competitor Essar and roughly the same level of service and schemes, it had now

become important for BSNL to humanize and use that relationship as a major

differentiation.

The brand had become something like Lufthansa cold and efficient. What they

needed was to become Singapore Airlines, efficient but also human. A change in tack

was important because this was a time when the cellular market was changing.

The leadership series was okay when you were wooing the crme de la crme of

society. Once you reached them you had to expand the market so there was need to

address to new customers.

By that time, BSNL was already the leading cellular subscriber in Delhi with a base of

3.77 lakh (it now has 1.2 million customers). And with tariffs becoming more

affordable as cell companies started cutting prices it was time to expand the

market.

How could BSNL leverage this leadership position down the value chain? Surveys

showed that the concept of leadership in the customers minds was also changing.

Leadership did not mean directing subordinates to execute orders but to work along


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with a team to achieve common objectives it was, again, a relationship game that

needed to be reflected in the BSNLbrand.

Also, a survey showed that 50 per cent of the new customers choose a mobile phone

brand mostly through word-of-mouth endorsements from friends, family or

colleagues. Thus, existing customers were an important tool for market expansion and

BSNL now focused on building closer relationships with them.

That is precisely what the brand tried to achieve through its new positioning under the

BSNL Touch Tomorrowbrand campaign. This set of campaigns portrayed mobile

users surrounded by caring family members. Says Sachdev: The new campaign and

positioning was designed to highlight the relationship angle and make the brand softer

and more sensitive.

As it looks to expand its cellular services nationwideto eight new circles apart from

the seven in which it already operates BSNL is now realizing that there are new

compulsions to rework the BSNL brand, and a new exercise is being launched to this

effect. Right now, the company is unwilling to discuss the new positioning in detail.

But broadly, the focus is on positioning BSNL as a power brand with numerous

regional sub-brands reflecting customer needs in various parts of the country.

If BSNL is becoming more humane and more sensitive as a brand, BSNL has also

understood that one common brand for all cellular operations might not always work

in urban markets that are now getting increasingly saturated.

To bring in new customers, the company decided that it needed to segment the market.

One such experiment, launched last year, is Youtopia, a brand aimed at the youth in

the 14 to 19 age bracket and for those who are young at heart. With its earlier


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positioning, BSNL was perceived as a brand for the well-heeled older customer; there

was nothing for younger people. With Youtopia, BSNL hoped to reverse that.

In order to deliver the concept, BSNL offered rock bottom tariff rates (25 paise for 30

seconds) at night to Youtopia customers a time when they make the maximum

number of calls. It also set up merchandising exercises around the scheme like a

special portal for young people to buy things or bid for goods.

The company is now looking at offering other services at affordable prices to this

segment which include music downloads on the mobile and bundling SMS rates with

normal calls to make it cheaper for young people to use.

The other experiment that BSNL has worked on is to go in for product segmentation

through the Tango brand name. The brand was created to offer mobile users Internet-

interface services or what is known as WAP (Wireless Application Protocol).

The idea was to bring Internet and mobile in perfect harmony. The name was chosen

from the popular movie title It Takes Two To Tango: basically, you need the two

services to tango to offer customers a new choice, says Sachdev.

This, however, had less to do with the branding exercise as with inefficiency of

service (accusingly slow download speeds) and the limited utility of WAP services.

Subsequently, the ads were withdrawn, but the company re-iterated that

the branding exercise could be revived because Tango will be the brand to

offer GPRS servicesor permanent Internet connectivity on the mobile

phonewhich BSNL is expected to launch soon.


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The Magic:

Perhaps the more ambitious experiment has been with Magicthe pre-

paid card. The idea was to make the brand affordable, accessible and,

most importantly, feasible as a means of expanding the market even

faster.

PHASE I

Magic was aimed at bringing in infrequent users of a mobile phone into

the market and assure him that he would have to pay only if he made a

call. Such a customer used the phone sparinglymostly for emergencies

and was not willing to pick up a normal mobile connection with its

relatively high rentals (pre-paid cards do not include rental charges).

To achieve its objectives BSNL did three things.

One, the product was made available at prices ranging from Rs 300

to Rs 3,000 with no strings attached and was simple to operate.

Two, the product was made accessible and distributed through

small stores, telephone booths and even kirana shops so that the

offering was well within arms reach.

Third, to make the product more approachable to the customer,

the company came with vernacular ad campaigns like BSNL

Connecting Indiawhich appealed to local sensibilities.


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This apart, the company roped in "Prity jinta "for a major ad campaign all

across Delhi, a ruse that saw the number of subscribers go up from 5.47

lakh to 12 lakh today, overtaking Essars branded pre-paid card Speed,

which was launched much ahead of Magic. The company is now re-

working its Magic strategy even further.

Earlier, the branding strategy was aimed at roping in only interested

customers that is, customers who were already inclined to opt for

mobile services. But now, with basic service providers having been

allowed limited mobility at far cheaper rates, mobile service providers

could find themselves under threat again.

That is why the new exercise is aimed at co-opting non-adopters. While

the exact strategy is under wraps, insiders say the new branding strategy

would be aimed at offering them value which they had not perceived

would be available from using a pre-paid card.

PHASE II -

First time ever in India - any pre-paid card brand goes on TV


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A combination of the film genre exposed through the TV medium

designed to connect with the masses of India

Youth based - romance driven strategy platform makes the value

proposition of BSNL.

All elements - user imagery, context, tone & language created to

connect the category to the lives of the SEC B & SEC C segment the

middle class non-mobile user.

BSNL positions itself on the platform of being excellent for emergency

situations - increasing productivity as a part of everyday life.

````````````````````````````````````````````````````

The brand is positioned to be relevant to the mass-market who want to

make all their dreams, hopes & desires come alive instantly. (At just

Rs.300/- per month BSNL is so easy to buy.) Improving productivity,

letting you befriend the world and opening up new horizons.

The genre of this new strategy & campaign is Hindi cinema led. This

genre connects millions across India. The spirit of romance, dancing

the Indian cinema, well known to most as Bollywood, holds millions of

Indians together as one.

(Poignantly conveying that special feeling we all get when a dream is

made possible and a victory of the heart is won).


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The strategy & new brand campaign is targeted at the large untapped base

of intending mobile customers from Sec A, B & C. The estimated

addressable market of such customers in the next two years is around 25

million in 20 states. The new strategy aims at correcting the perception

that the mobile category is useful mainly for business or work related

scenarios.

The new strategy, brand positioning & brand slogan is an outcome of an

extensive nationwide research and is an integral part of BSNL new multi-

media campaign. The campaign has been created by Percept

Advertising.


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PHASE III -

BSNL to build a strong value proposition and accelerate market

expansion through Indias first national pre-paid card TV brand campaign

First time ever in India - any pre-paid card brand gives such freedom

to recharge any value

A combination of the film genre exposed through the TV medium

designed to connect with the masses of India

Youth based - romance driven strategy platform makes the value

proposition of" BSNL Connecting India come alive.

The value proposition is centered around a persons desire to make all

his / her dreams, ambitions & aspirations instantly possible. The new

campaign for BSNL is all about empowering millions of Indians to be

on top of their lives.

The brand is positioned to be relevant to the mass-market who want to

make all their dreams, hopes & desires come alive instantly .At a

amount of your choice you can recharge your account with available

validity time .Improving productivity, letting you befriend the world and

opening up new horizons. It gives you the freedom to control your life in

a way never possible before. Indeed, anything that you think is Connect

with BSNL. The new brand sloga "Connecting India" been specially

created to capture this effectively.


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Amount Service Processing

Talk

Time Validity

(Rs.)

Tax

(8%) Fees(Rs.) (Rs.) (Days)

54 4 25 25 5

60 4.44 25 30.56 5

75 5.56 25 44.44 5

100 7.41 25 67.59 5

125 9.26 50 65.74 10

150 11.11 50 88.89 10

175 12.96 50 112.04 10

200 14.81 50 135.19 10

216 16 85 115 20

225 16.67 85 123.33 20

250 18.52 85 146.48 20

275 20.37 85 169.63 20

300 22.22 85 183.78 20

Amount Service Processing

Talk

Time Validity

(Rs.) Tax Fees(Rs.) (Rs.)


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(8%) (Days)

324 24 150 150 30

350 25.93 150 174.07 30

360 26.67 150 183.33 30

375 27.78 150 197.22 30

400 29.63 150 220.37 30

425 31.48 150 243.52 30

475 35.19 150 289.81 30

500 37.04 150 312.96 30

525 38.89 150 336.11 30

540 40 150 350 30

600 44.44 150 405.56 30

650 48.15 150 451.56 30

700 51.85 150 498.15 30

775 57.41 150 567.59 30

800 50.36 150 580.74 30

( Rs.)

Tax

(8%) Fees(Rs.) (Rs.) (Days)

850 62.96 150 637.04 60

900 66.67 150 683.33 60


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1000 74.07 150 775.93 60

1080 80 150 850 60

1200 88.89 150 961.11 60

1300 96.3 150 1053.7 60

1400 103.7 150 1146.3 60

1500 111.11 150 1238.89 60

1800 133.33 150 1516.67 60

2000 148.15 150 1701.85 60

2160 160 150 1850 60

3000 222.22 150 2627.78 60

5000 370.37 300 4329.63 366

6000 444.44 300 5255.56 366

7000 518.52 300 6181.48 366

8000 592.59 300 7107.41 366

9000 666.67 300 8033.33 366

9999 740.67 300 8958.33 366

YOUR TALK TIME = MRP - PROCESSING FEE -

SERVICE TAX


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Other Brand Building Initiatives:-

The main idea is to stay ahead of competition for at least six months.

Working on the above game plan BSNL is constantly coming up with

newer product offerings for the customers.

The focus, of course, is to offer better quality of service.

To make the service simpler for customers using roaming facilities,

BSNL has devised common numbers for subscribers across the

country for services like customer care, food services and cinema

amongst others.

It will also launch a unified billing system across circles so,

customers moving from one place to another do not have to close

and then again open new accounts at another place.

To assist customer care personnel to deal with subscriber queries, a

storehouse of 40,000 frequently asked questions and their answers

have been stored on the computers.

BSNL expects that most of its new customers (one estimate is that

it would be 60 to 70 per cent of the total new subscriber base)

would come from the pre-paid card segment. So, they must be

given value-added products and services which competitors dont

provide.


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BSNL, for the first time for a cellular operator, has decided to offer

roaming services even to its pre-paid customers, but the facility

would be limited to the region in which they buy the card. To

ensure that customers dont migrate to other competing services

(which is known as churn and ranges from 10 to 15 per cent of the

customer base every month), the company is also working on a

loyalty program. This will offer subscribers tangible cash benefits

depending upon their usage of the phone.

The loyalty program will not be only for a badge value, it will

provide real benefits to customers. The idea is to create an BSNL

community.

Another key area which BSNL is concentrating its attention upon is

a new roaming service launched in Delhi under which calls of a

roaming subscriber who is visiting the city will be routed directly to

his mobile instead of traveling via his home network.

The company also offers multi-media messaging systems under

which customers having a specialized phone with a in-built camera

can take pictures and e-mail it to friends or store it in the phone.

The cost per picture is between Rs 5 to Rs 7.

BSNL is also aware that it has to make owning a ready-to-use

cellular service much easier than it is today. A key area is to


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increase the number of activation centers. Earlier BSNL had 250

BSNL Connect stores which were exclusive outlets (for its

services) and about 250 BSNL Points which were kiosks in larger

shops. Now activation can be done by all of them, and not only by

Connect outlets, all within 15 to 20 minutes. In comparison, the

competition takes two to four hours.

Pre- paid cards are really catching up with the mobile phone users

and it is actually helping the market to increase. First, they are

easier to obtain and convenient to use. Unlike post-paid, one need not pay

security deposits for picking up a pre-paid card. It is often available even with

paanwalas. As befits a fast-moving consumer service, the game is now moving

beyond price to expanding distribution reach and servicing a well-spread-out

clientele with technology and strategic alliances. BSNL is focusing on two

factors to make pre-paid cards more attractive. Keeping the entry cost low for

consumers and making recharging more convenience.

BSNL is in the process of launching a new system in alliance with Mumbai-

based company Venture Infotech which will enable a pre-paid card user to

renew his subscription by just swiping a card. The system will not only save

users the hassle of going out and buying a card every time it expires but also

enable mobile companies to reduce the cost of printing and distributing cards.

BSNL Televentures has tied up with 'Waiter on wheels,' a company delivering

food at home, to reach its Magic pre-paid cards to subscribers' doorsteps. The

company is also joining hands with local grocery shops which will enable


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users to recharge their cards by just making a phone call to the shop. Apart

from improving the convenience of recharging, mobile operators are beefing

up their distribution channels. The company is constantly innovating to

enhance the value proposition for its pre-paid service. They are leveraging

technology to expand their distribution network and deliver round-the-clock

recharge options to its MOTS (Mobile On the Spot) subscribers.

BSNL Cellular has also launched a special service, CareTouch, for high-value,

corporate customers, providing them with instant, single-point access for any

assistance they require. Customers can dial 777 and enjoy a slew of services,

which includes easier payment of bills, service on priority basis, and value-

added services without any additional paper work. BSNL Cellular is offering a

range of services without going through an interactive voice recorder ensuring

that they save time. Dedicated CareTouch executives are expected to assist

customers with any service on priority basis. Besides the regular proactive

reminder calls for bill payment, customers can also call CareTouch for bill

payments at free of cost.

BSNL presented MTV Inbox; the first on-air SMS based interactive music

dedication show exclusively for BSNL and BSNL Magic customers. Highly

interactive VJ based show with real-time feedback mechanism. Both brands

joined hands to target the high growth youth segment.


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BSNLs View on its Branding strategy:-

First, brand building efforts in todays context have to be seen in a more holistic

manner. Delivering value on a sustained basis is perhaps the most potent key to build

a brand that lasts.

Unflinching orientation to customer needs is the second key success factor. Customers

(be it for industrial products or consumer goods and services) across the world are

more informed and, at the same time, becoming more individualistic in their needs

and far more demanding with the passage of time.

Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging

customer needs, and then reacting in real-time are essential to attract and retain

customer loyaltya key element of creating brand equity in the present situation.

Customizing the product (and communication of its benefit) to meet the specific needs

of various consumer/customer sub-segments is the third element in creating brand

appreciation.

As far as allocation of time and financial resources are concerned, too many

companies mistakenly allocate a disproportionate amount on mere advertising and

promotion. This is not to say that advertising and promotion are less relevant. On the

contrary, with more choices and higher media clutter, businesses need to budget for an

increasingly higher spend on their brand promotion but this has to be undertaken in

tandem with enterprise-wide reengineering of the business philosophy and core

design, production, and delivery operations for the product itself.

The positive spin to this argument is that by first addressing the fundamentals, the

enterprise itself becomes more competitive. This can be the beginning of a virtuous


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cycle wherein brand equity continues to increase as the enterprise sustains delivery of

an appropriate product or service at an ever increasing value.

It is, however, crucial to note that in the years to come, not only will the cost of

building a regional or a national (or an international) brand will continue to rise but

also the time taken to do so will be longer and will need sustained and focused efforts

PPRROOBBLLEEMM FFAACCEEDD

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11.. PPRROOBBLLEEMM OOFF CCUUSSTTOOMMEERR AANNDD DDEEAALLEERR MMEEEETT

2. Problem price is too high

3. Problem of defective in some service

4. Problem related to segmentation


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CHAPTER-2

INTRODUCTION

In the early 1990s, the Indian government adopted a new economic policy aimed at

improving India's competitiveness in the global markets and the rapid growth of

exports. Key to achieving these goals was a world-class telecom infrastructure.

In India, the telecom service areas are divided into four metros (New Delhi, Mumbai,

Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India.

The circles are further classified under "A," "B" and "C," with the "A" circle being the

most attractive and "C" being the least attractive. The regulatory body at that time

the Department of Telecommunications (DOT) allocated two cellular licenses for

each metro and circle. Thirty-four licenses for GSM900 cellular services were

auctioned to 22 firms in 1995. The first cellular service was provided by, Modi

Telstra in Kolkata in August 1995. For the auction, it was stipulated that no firm can

win in more than one metro, three circles or both. The circles of Jammu and Kashmir

and Andaman and Nicobar had no bidders, while West Bengal and Assam had only

one bidder each.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the

Lok Sabha, and the president officially announced the TRAI ordinance on 25 January

1997. The government decided to set up TRAI to separate regulatory functions from

policy formulation, licensing and telecom operations. Prior to the creation of TRAI,

these functions were the sole responsibility of the DOT.

High license fees and excessive bids for the cellular licenses put tremendous financial

burden on the operators, diverting funds away from network development and


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enhancements. As a result, by 1999 many operators failed to pay their license fees and

were in danger of having their licenses withdrawn. In March 1999, a new telecom

policy was put in place (New Telecom Policy [NTP] 1999). Under this new policy,

the old fixed-licensing regime was to be replaced by a revenue-sharing scheme

whereby between 8-12 percent of cellular revenue were to be paid to the government.

1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND

THEIR RESOLUTION

Indian Cellular market immediately after the first round of licensing in 1994-96 was

beset by several problems for 3 - 4 years till the New Telecom Policy of 1999 was

announced. Some of these roadblocks / current position is tabulated below:

ROADBLOCKS

CURRENT POSITION

High license fees

Migration to revenue sharing mode in 1999 mitigates high initial fund requirements

for payment of license fees.

Inadequately funded businesses / weak and fragmented promoters

Businesses that have since been adequately funded growing at over 60% per annum,

while businesses with weak promoters continuing to languish - spate of acquisitions /

mergers, with 4/5 major groups emerging in the last one/two years.

Regulatory authority not in place


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Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being

accepted by all operators; Deptt of Telecommunications (DOT) restructured, with

operations and policy making roles vested in different bodies.

Issues relating to unfavorable interconnect terms for private operators, pass through

income, intra circle long distance, spectrum availability and allocation and the like

remained unresolved for long periods.

Interconnect terms since rationalized, risks on pass through income to DOT /

BSNL(BHARAT SANCHAR NIGAM Ltd.) resolved to the satisfaction of all parties

with changes in methodology / revenue sharing, intra circle long distance allowed,

spectrum availability cleared with vacation of frequencies for usage by GSM

operators.

Problems in Financial closures due to:

Licensing tenure of 10 years

Large upfront cash requirements from promoters due to heavy license fee

burden in initial stages of deployment Asset based financing approach by

Indian Financial Institutions.

Licensing tenure increased from 10 to 20 years

Large upfront cash requirements for license fee payments mitigated with

migration to revenue sharing mode allowing promoters to deploy more capital

for capital expenditure; project financing being considered by most financial

institutions.

Foreign ownership / change of partner limitations


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Foreign ownership norms clarified, and change of partners allowed as a matter of

routine allowing ease of entry / exit - paves the way for full control of businesses by

foreign companies.

Inadequate growth of market / subscribers

Roadblocks spelt out earlier resulted in low market / subscriber growth, but with

corrective measures taken, market / subscriber base expected to zoom

1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime betweencellular operators and fixed-line operators is still

biased against the former.

Despite the recent gains of the cellular industry, not everything is rosy. The cellular

penetration rate is still very low at 0.8 percent in a nation of over one billion people.

In recent years, many foreign companies had pulled out from their cellular joint

ventures in India due to the difficult operating environment and bureaucracy. In 1999

alone, Swisscom pulled out from Sterling Cellular, Telstra from Modi Telstra and

both the Telecom Organization of Thailand and Jasmine International from JT

Mobile. In 2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both

Shinawatra of Thailand and Bezel exited from Fascel. In June 2001, British Telecom

exited from BSNL Cellular. Bell South International has also indicated its intention to

pull out from Skycell Communications, and Hong Kong-based Distacom is seeking to

sell its stake in Spice Communications. First Pacific's (based in Hong Kong)

continued commitment to Escotel is uncertain, and the former is reviewing various

options.

The string of sell-outs notwithstanding, there has been a merger and acquisition wave

sweeping across the Indian cellular industry in recent years. Hong Kong-based


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Hutchison Whampoa, via Hutchison Telecommunications (HK), acquired major

stakes in Sterling Cellular (December 1999), Usha Martin Telecom (mid-2000) and

Fascel (September 2000). Through a partnership with local company, Kotak Mahindra

Finance, Hutchison Whampoa practically controls Fascel and Usha Martin Telecom,

thus circumventing the 49 percent limit on foreign ownership in Indian cellular

operators. Hutchison Whampoa is also the controlling shareholder of Hutchison Max

Telecom. Not to be outdone, BSNL Enterprises another major cellular player

acquired control of JT Telecom, which was later renamed BSNL Mobile (December

1999), and Skycell Communications renamed BSNL Mobinet (August 2000). BSNL

also acquired the Punjab license of Essar and started operations, giving competition to

the lone operator there, Spice Communications. Going forward, BSNL is likely to

merge all its cellular companies into one entity.

Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator

slots in four metros and 13 circles. BSNL emerged as the No. 1 bidder with eight new

licenses, followed by Escotel with four, Hutchison with three, and Reliance and Idea

cellular with one each. BSNL and Hutchison have already commenced operations in

all the circles while Idea is set to launch in Delhi. Escotel and Reliance have not made

any headway.

BSNL, the third cellular operator for Delhi and Mumbai, started services in March

2001. BSNL, as the third nationwide cellular operator, launched services in Kolkata

and Bihar in January 2002. This was followed by Tamil Nadu in July 2002. A

nationwide launch was scheduled for 2 October 2002. However, this has been

postponed until after mid-October. Once BSNL rolls out its service, most telecom

circles will have four cellular operators. There will be tremendous competitive

pressure, which will result in lower tariffs. Future rate cuts are expected, which will


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drive demand, together with falling handset prices and the introduction of prepaid

services.

In the midst of declining interest in technology stocks, BSNL came out with its long-

awaited initial public offering (IPO) in January 2002. Leveraging on the success of its

cellular service, the company got a very good response from the primary market. The

total size of the IPO was 185 million shares at a floor price of Rs10. The issue was

oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used to fuel

its investment in long-distance, basic and cellular services.

As of October 2002, only BPL Mobile has launched commercial general packet radio

service (GPRS) in Mumbai. However, large-scale uptake remains elusive. While both

BSNL and Idea have GPRS-enabled networks, there is caution on their part to launch

the service. With hardly any applications, the success of GPRS remains a question.

Building visibility and awareness

Deviating from competing on the price platform, cellular operators are actively

promoting their brand and service portfolio through high-visibility advertising and

promotional campaigns. Cellular operators like BSNL, Orange and BPL Mobile have

been advertising aggressively on hoardings and kiosks. Public transport like the city

rail system and cabs are used widely to carry the message of mobility.

Customer-focused activities are gaining traction among cellular operators with the

establishment of longstanding consumer benefit programs. Orange in Mumbai offers

"Orange Holidays" and "Orange Monsoon Offers" at very attractive rates and added

benefits like discounts on airfare, food and beverages, among others. Others offer

special privileges in retail outlets, cinemas and music shops.


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Enterprise mobile applicationspromising revenue stream

All along, customer acquisition and the top line have been the focus. Few operators

have concentrated on offering differentiated services for businesses. However, as

operators realize that offering basic voice and Short Message Service (SMS) will get

them the numbers but not the margins, some are now seriously looking at the

enterprise segment for provisioning superior services.

Cost-centered solutions like closed user group (CUG), value-adds like unified

messaging and instant alerts are being offered.

A variety of mobile applications are finding takers among the enterprise segment.

BSNL is in the process of introducing a facility to fleet management companies so

that they can improve the efficiency of trucks or buses by tracking movement and

ensuring higher-use, accurate route planning. Premium automakers are also installing

a global system for mobile communications inside a vehicle to help trace lost vehicles

and track down stolen cars.

Corporations can choose enhanced services like user-defined call routing to prevent

misuse. Calls can be barred, limiting access to select numbers and diverting calls to

one single number. Broadcasting services are also quite popular, especially among

fast food centers that have a central number. Group SMS is quite popular, especially

among enterprises both in the service as well as the fast-moving consumer goods

(FMCG) segment that have a large field force and need to provide regular updates on

inventory status, discount schemes and movement of goods from warehouse to the

retail outlet. Banks too find bulk SMS service very useful to forward transactional

alerts to their customers.


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1.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on

differentiations to maintain their lead.

The implementation of enhanced networks like 2.5G will enable operators to

offer data services. This is an opportunity to customize and differentiate better.

The entry of state-run operators like BSNL and BSNL means that prices will

no longer be controlled, thus there is less chance of a cartel being formed.

Network coverage in terms of geographic spread and quality of coverage is

crucial especially for the business subscriber.

The bigger the service provider's national presence, the better it is for

businesses. On the roaming front, signing up with a national operator is

advantageous.

Limited mobility wireless in local-loop services (by fixed network service

providers) will be a disadvantage for cellular operators in the short term.

Consequently, operators need to streamline their customer relation activities

and adopt aggressive subscriber acquisition and retention strategies.

1.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian Telegraph Act of

1885. A document buried in the sands of time. The next major policy document,

which was produced, was the National Telecom Policy of 1994, a consequence of the

ongoing process of liberalization.


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IMPOR

Year Event

1851 First telephones in India

1943 Nationalization of telephone companies

1985 DoT was created

1986 Creation of BSNL and VSNL

1991 Telecom equipment liberalized

1994 Licenses for paging

1994 Telecom policy announced

September 1994 Guidelines for private sector participation in basic services

November 1994 Cellular licenses issued for metros

December 1994 Tenders for cellular licenses in 19 cities apart from 4 metros

January 1995 Tenders for 2nd operator in basic services apart from DoT

on circle basis.

August 1995 VSNL launches Internet services

January 1996 TRAI formed

November 1998 Internet policy announced


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The National Telecom Policy of 1994 document, which laid out broad policy

guidelines rather than a series of action points. Like other policies, it sought to

achieve the impossible in finite time like improve quality of service and its

availability, wide coverage (a phone in every village), at reasonable rates, etc. The

targets in quantifiable terms were installation of 9.5mn additional lines, telephone on

demand by 1997, and a PCO pop of 500. The Eighth Plan had also allowed private

operators in value added services. To facilitate licensing, the nation was divided into

20 circles (akin to a state) for basic and 21 circles for cellular telephony. Mumbai falls

in Maharashtra circle and Delhi in itself a circle.

The basic premise on which competition has been introduced is that every circle will

have one private operator apart from DoT/ BSNL for basic and two operators for

cellular. DoT/ BSNL have the option to become the third cellular operator in future.

Government did not achieve most of its stated targets. The basic theme, which was

broadening the reach of telephony in India, has not been met. Even liberalization

policies were not implemented properly. The regulator TRAI was set up after delays

and confusion and even after its creation, DoT continued to fight with it in courts. It

was also affected by the resource crunch, and financing options like BOT, BOOT and

BOLT was not used at all. The major policy direction it showed was to allow private

sector entry in both basic and value added services. The intention, though noble failed

to achieve its goals because of improper implementation, the economic costs are still

borne by the end user.

The telecom sector has witnessed some fundamental structural and institutional

reforms in the past decade. telecom equipment manufacturing was completely

deregulated in 1991. Value-added services (including cellular services) were thrown

open to private sector participation in 1992. Basic services were opened to private


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participation in 1994 by dividing the country into 21 telecom Circles and allowing

one private operator per Circle to compete with DoT. An independent telecom

regulatory Authority of India was set up in 1997. A new Policy for Internet Service

Policy Providers (ISPs) was announced in 1998 allowing independent service

providers to enter the sector ending the earlier monopoly of VSNL. Reorganization of

DoT, separating policymaking function and service provision and corporatization of

DoT's operational network are two major institutional reforms, which need to be

implemented.


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OBJECTIVE OF THE STUDY

1. To identify the difference in market performance of BSNL industry.

2. To study the market of BSNL Industry in big scale sector.

3. To compare various parameters of manufacturing process, technology, production

policy, advertising, collaboration, export scenario, future prospect and government

policies.


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SCOPE

Corporate may promote their products directly to consumer through advertising and

promotion and/or direct marketing efforts or through reseller and sales people.

(selling function exist mostly in large corporation and smaller companies that is as a

link to reseller or dealers in B2B transaction).

Depending on the role define by the org., the responsibilities and specific task of sales

people may differ, but ultimately these task are design to help attain communication

and marketing objectives.

it tells management has been achieved through public relation activities .

it provides management with a way to measure public relation achievement

quantitatively.

It gives management way to judge the quality of public relation, achievement

and activities.

It helps personal observation and reaction.

Matching objective and results.

Public opinion and surveys.


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RESEARCH METHODOLOGY

Achieving accuracy in any research requires in depth study regarding the subject. As

the prime objective of the project is to compare BSNL with the existing competitors

in the market and the impact of landline & WLL on BSNL, the research methodology

adopted is basically based on primary data via which the most recent and accurate

piece of firsthand information could be collected. Secondary data has been used to

support primary data wherever needed.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

The main tool used was, the questionnaire method. Further direct interview method,

where a face-to-face formal interview was taken. Lastly observation method has been

continuous with the questionnaire method, as one continuously observes the

surrounding environment he works in.

Procedure of research methodology

# To conduct this research the target population was the mobile users, Who are using

GSM technology.

# Target geographic area. Sample size of 100 was taken.

# To these 100 people a questionnaire was given, the questionnaire was a combination

of both open ended and closed ended questions.


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# The date during which questionnaires were filled.

# Some dealers were also interviewed to know their prospective. Interviews with the

managers of GSM service providers were also conducted.

# Finally the collected data and information was analyzed and compiled to arrive at

the conclusion and recommendations given.

Sources of secondary data

Used to obtain information on, current issues, policies, procedures etc, wherever

required.

# Internet

# Magazines

# Newspapers

# Journals


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LIMITATIONS

No project is without limitations and it becomes essential to figure out the various

constraints that we underwent during the study. The following points in this direction

would add to our total deliberations:-

1. During the study, on many occasions the respondent groups gave us a cold

shoulder.

2. The respondents from whom primary data was gathered any times displayed

complete ignorance about the complete branded range, which was being studied.

3. Lack of time is the basic limitation in the project.

4. Some retailers/wholesalers refuse to cooperate with the queries.

5. Some retailers/wholesalers gave biased or incomplete information regarding the

study.

6. Money played a vital factor in the whole project duration.

7. Lack of proper information and experience also because hurdle for me.

8. Some retailers did not answer all the questions or do not have time.


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CHAPTER-3

FINDING AND ANALYSIS

Age Group Graph

As we can see from the above graph, the people who are in the age group of 21-28

years are the ones who are the maximum users of mobile phones. This segment is the

one which gives maximum business to the mobile operators. This segment constitutes

the young executives and other office going people. They are 65% of the total people

who were interviewed. The next age group are the people who are 28-35 years old.

They are 20% of the total. They are those who are at home or have small business

units etc. And the next age group is the youngest generation who are 15-21 years old.

They are school and college going students and carry mobile phones to flaunt. They

are 15% of the total interviewed people.

Occupation Graph

15-21

21-28

28-35

0%

10%

20%

30%40%

50%

60%

70%

15-21 21-28 28-35

AGE GROUP


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As the above graph shows that 55% of the total people interviewed are working. So,

these people are the ones who are the maximum users of mobile phones. They are the

young executives, managers, Tele - callers etc. who require mobile for their official

purposes. The next category is the households, who are either housewives, small units

which operate from their homes etc. They are 20% of the whole . The next segment is

the students. They are 15% of the whole. And 10% of the whole is a category who are

the professionals.

15%

55%

20%

10%

0%10%20%30%40%50%60%

STUDENT

S

EXECUTIVE

S

HOUSEHOLD

S

OTHER

S

OCCUPATION

Series1


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Service Provider Graph

The above graph shows a slice of 50%. These are the total no. of people who are

using BSNL. It seems that people are more aware of BSNL than any other brand. The

next popular brand is BSNL. 305 of the people interviewed had BSNL connections.

The next popular brand was Idea. 15% people had Idea connections. As it came very

late in the market when BSNL had established it self very well. So, that could be one

of the reasons of such a low percentage. The remaining 5% had trump connections.

15%

50%

30%

5%0%

10%

20%

30%

40%

50%

60%

SERVICE PROVIDER

Series1


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Customer Service At BSNLGraph

As the above graph clearly shows that customer services at BSNL is 60% of the

people are dissatisfied with the customer services provided by BSNL. They are the

ones who have the maximum share in the market but they are lagging behind in the

customer services. 10% of the people were fully satisfied with the customer services

of BSNL. This could leave an impact on the mind of the consumer. He can even

switch over his brand. 20% of the people seemed partially satisfied with the customer

services and only 10% seem to be fully satisfied with BSNLs customer services,

which is a very small amount.

20%

10%

60%

10%

CUSTOMER SATISFACTIONLEVEL

FULLYPARTIALLYDISSATISFIED


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Type Of Card Graph

Cash cards seemed quite popular among the people interviewed. 85% of the total

mobile users were having cash card connections. This means that the cash cards

should be easily and readily available in the local markets. BSNL should make sure

that is available in each and every nook and corner of the market. 15% of the people

were having sim connections which is the regular bill.

CASH

CARD

SIM

CARD

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

CASH CARD SIM CARD

TYPES OF CARDS


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Monthly expense graph

People on an average spend RS 500 per month as their mobile phone expense. 64%

people spend this amount. 24% people spend RS 300 per month as their monthly

mobile expense. And the remaining 12% had an expense more than RS 1000, they

could the ones having sim connections or having cash cards and having a lot of

business calls on their mobiles.

12%

64%

24%

Monthly Expense

Rs 600

Rs 450

Rs 200


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Awareness About WLL Graph

WLL seemed to be a new word for many of the people. 45% of the people were not at

all aware of such a technology. So, in order to get the answer for this question they

were first explained the concept. Only, 55% people knew what WLL is all about.

YES

NO

0%

10%

20%

30%

40%

50%

60%

YES NO

AWARENESS ABOUT WLL


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Awareness of WLL Players Graph

Reliance was the brand which was popular amongst the interviewed people. As

Reliance had done so much advertising and has it banners and hoarding spread all

over Delhi. So, this could be one the reasons of its popularity. Tata was hardly a

known brand in this new field. Possibly, because of less promotions done by them as

compared to Reliance.

TATA

INDICOM

15%

RELIANC

E

85%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

TATA INFOCOM RELIANCE

AWARENESS OF WLL PLAYERS


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On the basis of analysis of the questionnaire I have found that the maximum no. of

people who use mobile phones are in the age group of 20 to 28. who are the young

executives and other office goers.

They spend a maximum of RS. 500 as their mobile expense.

There is more no. of prepared cards than postpaid cards. The mobile users want to

spend money side by side than to spend money at the end of the month on a big bill.

Now when I compared BSNL with its competitor from the point of view of the

consumer I found that on the basis of Tariff plan, value added services and billing

accuracy BSNL is at par or ahead of its competitor but in the case of customer care

and availability they lag behind their competitors. As, BSNL has a hold in the market

because it has the maximum no. of connections, so it must improve upon it customer

services. As far as WLL is concerned people are aware about it but not many people

are aware about Tata. They only Know more about Reliance. People at this point of

time are not interested to switch over from GSM to WLL.


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SWOT ANALYSIS

Strengths

Being one of the largest companies in India the company has achieved a degree of

focus in its core business of its products.

It has a strong brand name, superior quality products and an enviable distribution

network.

It has a clear and well-defined organization structure and limits of financial

authority.

Increase in advertisement spends affect the companys margins.

The companys bottom line falls victim to the bloated and highly paid workforce,

which affects its margins.

Weakness:

1 Little efforts over the Advertising of products.

2 Distribution channel is not accurately categorized.

3 Premium priced products, hence cant compete in low price segment.

4 No separate strategy for rural market.

Opportunities:

The company's financial performance can receive a major boost from its cost

reduction efforts.

There is a lot of scope of product and market diversification.


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Exports of products will also have huge chances in the coming years.

BSNL's business has ample scope for gaining market share from the unorganized

sector. Rural penetration too holds vast potential to bring about growth.

Threats

The slowdown in the economy has restricted topline growth of most FMCG

majors and for BSNL also it will be difficult to maintain historical growth rates in

such a depressed scenario.

Companys major raw materials are influenced by government policies / controls

as well as vagaries of the monsoons. Fluctuations in the prices of raw materials

would have significant impact on costs and margins of the company.

Moreover, inordinate hike in Broad Band Internet products would also increases

companys production and distribution cost.


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CHAPTER-4

CONCLUSION

After analyzing the findings of the research, I can conclude that BSNL lagged behind

its competitors as far as customer service and availability is concerned. The maximum

no. of people who use the mobile are in the age group of 20 to 28. Cash cards are the

most popular type of mobile connections, as they are consumer friendly and

recharging the connection is not a problem.

Maximum no. of people spend RS 500 on their connections. As BSNL is the only

company having the maximum no of mobile connections so it must seriously look

into the loop holes of the existing customer service department.

As we know that now BSNL has already launched its product with logo Connecting

India has already became popular in market. So we can say that inspite of so many

competitor in the market BSNL is having a good position just because every time, it

tries its best to understand the need of its important customer.


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SUGGESTIONS

Following are the few suggestions to BSNL for improving the market share and

image of the products concerned.

1. PRODUCT

*Modification must be brought about in BSNL, in terms of quality. Its demand

should be increased.

2. PLACE

* The brands must be made available easily in, PCO & general stores.

3. PROMOTION

*Company must undertake extensive promotional activities like

advertisements must be released in different Medias to create brand

awareness.

*Free samples should be distributed among the prospects. Sales promotion

tools like gifts, contests and coupons must be given to retailers as well as

customers and prospects.

* Catalogues should be distributed among customers.


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RECOMMENDATION

I have made following recommendation to the company after doing the summer

training there:

1 The company should modify its credit policy as they only target the cash

paying customers who are not easy to trace.

2 The company should emphasis more on the quality of Pharmaceuticals

Products it was mostly claimed by the exporters that their receipts from

company doesnt matches with the samples quality shown before giving

orders.

3 The company should makes its marketing strategy flexible enough in order to

face competition.

4 The company should keep an eye on the proper delivery of the goods to

exporter on time, as it has been recommended by exporters to make the

delivery on time.

5 The company rate policy must be flexible enough to catch new customers

because if company offers lower price to a new customer then he may

continue buy the goods and can be a permanent customer for the company.

6 The company should offers such rate in the market so that it may able to catch

a bigger market share and it should be able to compete with the local traders

and commission agents while having a brand name.

The company should take the opinion of exporters from time to time to know what

problems they are facing from the companys side. And if any change they require in

present supplying condition?


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CHAPTER - 5

BIBLIOGRAPHY

In this project report, while finalizing and for analyzing quality problem in details the

following Books, Magazines/Journals and Web Sites have been referred. All the

material detailed below provides effective help and a guiding layout while designing

this text report.

Websites:

www.bsnl.co.in

www.google.com

www.india.com

Magazines:

BSNL (2 July to 10 July 2010)

BSNL India page of HT paper (Thursday 1December 2010)

Cowards India (26 December to 4 Jan. 2010)


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CCHHAAPPTTEERR66

APPENDIX

QQUUEESSTTIIOONNNNAAIIRREE

Dear Sir/Madam,

I am a student of MBA of Raj Kumar Goel institute of technology,

Ghaziabad doing my summer training project on consumer behavior from BSNL.

Please give your precious time for filling these details.

Q.1 For how long you have been using BSNL Product?

1 0-2 Years

2 2-5 Years

3 5-10 Years

4 More than 10 years

Q.2 Are you using other product instead of BSNL?

1 Yes

2 No

Q.3 Among them, which Brand you, prefer most?


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1 Idea

2 BSNL

3 BSNL

Q. 4 How would you rate the experience with Brand?

Excellent Good Average Below Average

4 Idea

5 BSNL

6 BSNL

Q.5 Do you collect any information search before making purchase?

1 Yes

2 No.

Q.6 If yes, which sources are used?

1 Magazines

2 Dealers

3 Sales Executives


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4 Operators reference

5 Pamphlets and catalogue

6 Reference from friends and relatives

7 Any other

Q.7 What are the features you look for in a product before making purchase

decision? Give preferences (1-Highest, 6- least)

1 Brand credibility

2 Price and Discount

3 After sales services and parts, network

4 Value for money

5 Vehicle performance

6 Add on features or ergonomics of design

Q.8. Which of these marketing / sales schemes attracts you while purchasing any

connection?

1 Good Network

2 Discount scheme

3 Service package

4 Any other


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Q.9 If you have to purchase a new connection or product in near future, which

Brand will you go for and why?

_______________________________________________________________

_____________________________________

__________________________________________________

__________________________________________________

Q.10 Are you aware of various promotional activities being run byBSNL, if

yes then how? Are you satisfied with these promotional activities?

Very

Satisfied

Satisfied Somewhat

Satisfied

Not

satisfied

1 Customer Care

2 By Ad Films

3 By Camp

4 24 hrs. call center services


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Q.11 How would you rate BSNL performance as your expectation on 5 points scale

(5 Highest?)

1 2 3 4 5

1 After Sale service

2 Maintenance

3 Product as per expectation

Q.12 What are you suggestions for improving the product quality, service

availability and parts availability?

_______________________________________________________________

_____________________________________

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