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Research Report
On
“A Comparative Study on Reliance J io & Airtel”
SESSION- 2015-2017
Submitted By
ROHIT SHRIVASTAVA
Roll No-151030500046
Uttarakhand
CONTENTS
1
Acknowledgement
Executive Summary
Chapter 1
Introduction
Companies profile
Chapter 2
Objectives
Scope of study
Use and importance of study
Chapter 3
Research methodology
Analysis of data
Finding
Chapter 4
Conclusion
Recommendation
SWOT analysis of Reliance Jio & Airtel
Limitation
Chapter 5
Questionnaire
Bibliography
CERTIFICATE FROM
ORGANIZATION/ INSTITUTE
2
CERTIFICATE
This is to certify that Mr. Rohit Shrivastava is a student of MBA final year of
Quantum School of Business, Roorkee of Batch 2015-17. He has satisfactory
completed the Research
Airtel” as per topicguidelines
the rules and “A Comparative Study on Reliance Jio &
of Uttarakhand Technical University,
Dehradun (Uttarakhand) in the academic session 2015-17.
(Signature)
(Signature)
Project Mentor Head of
department (HOD)
CANDIDATE DECLARATION
3
I am Rohit Shrivastava hereby declare that the project work entitled “A
Comparative Study on Reliance Jio & Airtel” was carried by me in the
partial fulfillment of MBA Program Quantum School of Business, Roorkee
under Uttarakhand Technical University.
Thisuniversity
the project was undertaken
rules and normsasand a part
it doofnot
academic
have anycurriculum
commercialaccording to
interest and
motive. It is my srcinal work. It is not submitted to any other organization for
any other purpose
Rohit Shrivastava
MBA 2nd year
ACKNOWLEDGEMENT
Last but not the least I record my sincere thanks to all beloved and
respectable persons who helped me and could find any separate
mention.
Rohit Shrivastava
Signature:
Date:
PREFACE
In today’s customer centered market consumers have more choice because
of their different habit’s attitudes, opinions, perception, personality etc. and
therefore, they have really become choosy. Their buying behavior constantly
undergoes modification, consumers are the king or god in the market, and so
5
it is important to know the buying decision of consumers and why they buy
one particular product when other is equally attractive.
This research report has been prepared to satisfy dual purpose. The market
survey done will at us know the consumer habits, buying criteria, Inspiration
rate, time period, frequency rate, place, effect of an advertising and sales
promotion and secondary data will give us an inside into Newspaper and
trends of last few year.
Finally, this research report was really good learning process for me and it
gave me an opportunity to compare the theoretical knowledge gain with the
practical aspects and difficulties that come across in real life.
This project is fulfillment of course curriculum of MBA Program set by utu, as
each student has to undergo for research report Project. This project is
presented in systematic manner. It contains the information related to
company’s profile and sales promotion of Reliance Jio & Airtel than research
methodology, analytical part, findings suggestion, recommendation and
conclusion is given at the end. The bibliography and appendix also given for
know more about the sample and other information related to telecom
markets. I hope that these will serve the purpose.
Rohit Shrivastava
Signature:
Date:
EXECUTIVE SUMMARY
India is currently the world’s second-largest
telecommunications market and has registered strong growth in the past
decade and half. The Indian mobile economy is growing rapidly and will
contribute substantially to India’s Gross Domestic Product (GDP), according
to report prepared by GSM Association (GSMA) in collaboration with the
Boston Consulting Group (BCG).
6
The liberal and reformist policies of the Government of India
have been instrumental along with strong consumer demand in the rapid
growth in the Indian telecom sector. The government has enabled easy
market access to telecom equipment and a fair and proactive regulatory
framework that has ensured availability of telecom services to consumer at
affordable prices. The deregulation of Foreign Direct Investment (FDI) norms
has made the
opportunity sector one
generator of country.
in the the fastest growing and a top five employment
Market Size
7
Swedish telecom equipment maker Ericsson has announced the
introduction of a new radio system in the Indian market, which will
provide the necessary infrastructure required by mobile companies in
order to provide Fifth-Generation (5G) services in future.
Government Initiatives
9
The Ministry of Skill Development and Entrepreneurship (MSDE)
signed a Memorandum of Understanding (MOU) with DoT to develop
and implement National Action Plan for Skill Development in Telecom
Sector, with an objective of fulfilling skilled manpower requirement and
providing employment and entrepreneurship opportunities in the sector.
Road Ahead
10
CHAPTER-1
11
GSM
13
COMPANIES PROFILE
Reliance Jio
Reliance Jio Infocomm
Limited, doing business as Jio, is a LTE mobile network operator in India. It is
a wholly owned subsidiary of Reliance Industries headquartered in Navi
Mumbai, Maharashtra that provides wireless 4G LTE service network (without
2G/3G based services) and is the only 'VoLTE-only' (Voice over LTE) operator
in the country which lacks legacy network support of 2G and 3G, with
coverage across all 22 telecom circles in India.
In June 2015, Jio announced that it will start its operations all over
the country by the end of 2015. [8] However, four months later in October 2015,
the company's spokesmen sent out a press release stating that the launch
was postponed to the first quarter of the financial year 2016-2017.
14
crore (US$25 million) which was arbitrary and unreasonable, and contributed
to a loss of ₹2,284.2 crore (US$340 million) to the exchequer.
COMPANY PROFILE
Subsidiaries: LYF
Website: www.jio.com
15
RAM: 2GB,Screen resolution : Full HD, 1080x
1920 pixels
Jionet WiFi
Prior to its pan-India launch of 4G data and telephony services, Jio has
started providing free Wi-Fi hotspot services in cities throughout India
including Ahmedabad and Surat in Gujarat, Indore, Jabalpur, Dewas and
Ujjain in Madhya Pradesh, select locations of Mumbai in Maharashtra, Kolkata
in West Bengal, Lucknow in Uttar Pradesh, Bhubaneswar in Odisha,
Mussoorie in Uttarakhand, Collectorate's Office in Meerut, and at MG Road in
Vijayawada among others. Title=Reliance Jio rolls out Wi-Fi service at IP sigra
Mall in Varanasi among others.
26
Jio apps
27
JIO PREVIEW OFFER FOR HP LAPTOPS:
28
For Postpaid users: Free 3 GB data per month with all MyPlan Infinity
Plans
For instance, the Rs 549 Infinity plan will now offer unlimited free calling plus
6 GB data (3GB regular data + 3GB free data) per month along with other
pack benefits to customers under this offer. The Rs 799 Infinity plan will offer
unlimited free calling plus 8 GB data (5 GB regular data + 3GB free data) per
month along with other pack benefits to customers under this offer.
36
CHAPTER-2
OBJECTIVES
37
The objective of the study is to know the comparative measurement of
customer perception regarding the services of two major companies that are
doing their business in Roorkee region. These two companies are: -Reliance
Jio & Airtel" Along with this I tried to find out the perceptions of the customer of
different Age Group & different Professions which are using the services of
these companies permanently are given below:
To know the level of Customer Loyalty regarding his service provider &
he is a switcher who switches over time to time due to various reasons.
38
TOOLS AND TECHNIQUES
The data was collected through questionnaire method and personal interview.
Again the research is descriptive type. The analysis is done through the
tabular and graphical representation.
SURVEY AREA
The research is done in the different areas of Roorkee which are given
below:
SAMPLE SIZE
The total sample size I had cover is 100. These size are generally outlets.
SAMPLE UNIT
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JIO VS AIRTEL
The competitive intensity in the telecom industry in India is one of the highest
in the world and has lead to sustained fall in realisation for the service
providers. Intense competitive pressure and cut throat pricing has resulted in
declining ARPUs. With increasing number of new entrants in the telecom
space the competitive intensity is likely to continue, putting further downward
pressures on the telecom tariffs. Thus, the telecom companies might have to
grapple with further decline in ARPUs, going forward.
Further, with the telecom companies moving their focus to the rural areas for
driving the future subscriber growth they might not witness a commensurate
increase in revenues. In fact, the risk of steep decline in ARPUs will increase
going forward as the telecom companies penetrate rural markets that are
characterized by higher concentration of low-income, low-usage customers. A
higher-than-expected decline in ARPU poses a risk of reduction in margins of
service providers. Alternatively, telecom operators are turning their focus to
steadily increasing the minutes of usage (MoU) to counter the sustained fall in
49
ARPUs. Likewise, the growth of the VAS is also crucial for some improvement
in the ARPUs of operators.
A rural teledensity of merely 15% point towards the fact that a majority of
Indian population still do not have access to telecom services. The rural India
seems to have remained untouched by the telecom revolution witnessed in
the last few years. A huge 'digital divide', which is reflected by the enormous
difference of 74% between the urban and rural teledensity, reiterates this fact.
However, with the urban markets reaching a saturation point, the telecom
service providers are penetrating rural areas for driving future growth. Thus,
the service providers entering new rural markets might witness substantial
increase in subscriber base. The expansion in the rural areas, however, has
increased the risk of further decline in the ARPUs. Nonetheless the revenue
growth from these regions is unlikely to match the surge in the subscriber
base.
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Excessive Competition
Another major concern that has come to the forefront in the recent past has
been heightened competitive intensity in the industry that has correspondingly
fuelled the price war between industry players. The Indian wireless market is
Spectrum is the most important resource that is required for providing mobile
services. Given that spectrum is a finite resource, the availability of the same
would be inversely proportional to the number of operators. Thus, larger the
number of service providers smaller will be the amount of spectrum available
to each of them.
might find it difficult to gather significant share in Indian telecom market. While
the new players may benefit from a faster network rollout through tower
sharing, they will face challenges in terms of high subscriber acquisition costs
and lower ARPU customers.
Spectrum Allocation
4G Spectrum availability is one of the major concerns for the industry. Lack of
adequate spectrum which is the most integral part of the mobile telephony
sector could hamper its growth severely. However, the spectrum allotment has
been the most controversial issues in the Indian telecom sector.
52
The deployment of 4G services is likely to help the emergence of new VAS.
Mass acceptance will be crucial for the success of 4G services in India.
Comparatively higher cost of handsets required for accessing 4G services is
likely to be one of the major roadblocks in mass 4G adoption in India.
Airtel Networking
"In a service industry like telecom, people live a brand 24X7. It's all about
experience; and for Airtel 'brand=customer experience," says Rajan Mittal,
joint managing director, Bharti Tele-Ventures Ltd.
53
That's now, but when mobile telephony began in India a decade ago, the
brand was all about aspiration. That's understandable: a handset cost about
Rs 45,000 - the price of a second-hand Fiat - and call charges hovered
around Rs 16 a minute.
Airtel was on a power trip: the logo was black, uppercase bold lettering; and
the baseline was "the power to keep in touch". "From day one, it was decided
that the brand should always connote leadership - be it in network,
innovations, offerings or services," says Diwan Arun Nanda, CMD,
Rediffusion-DY&R, the agency that has created all Airtel ads over the past
decade. The taglines emphasized that stance: "Airtel celebrates the spirit of
leadership" and "The first choice of the corporate leaders".
This was also a time when customers needed to be educated; interest levels
were high, but customers' exposure to the cellular world was limited. Airtel
took out full and half-page ads in newspapers, answering queries like "what is
roaming?", "what is coverage area?" and "how to make international calls".
In 1999, the rules of the game changed. The New Telecom Policy came into
effect, replacing licence fees with a revenue-sharing scheme and extending
the license period from 10 to 20 years. Now, cellular service operators could
drop their prices and target new customer segments. As SEC B became part
of the catchments area, Airtel's communication changed from "power" to
"touch tomorrow".
The focus now was on the endless possibilities of technology to make life
good and advertising became two-pronged: a product-driven communication
54
7. RATE THE FOLLOWING ATTRIBUTES OF SHOW ROOM
Available 30 24 18 16 12 100
Knowledge Of 20 20 23 20 17 100
Sales man
Service 22 11 15 19 13 100
Infrastructure 12 10 20 30 48 100
66
Attributes Excellent Very Good Average Poor Total
Good
Festival Offer 43 21 12 14 10 100
Exchange 15 31 29 12 13 100
Offer
Special Gift 20 14 30 20 16 100
Cash 11 21 19 34 15 100
Discount
Anniversary 11 13 10 20 46 100
Offer
Total 100 100 100 100 100 500
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FINDINGS
During the project we meet various people & trying to find their perception
regarding various mobile services in the Roorkee. While studying we find that
the main customer or the users of mobile services are the self-employed
persons who have their own business & other major users are the college
going students.
Jio is the leading mobile service provider in the Roorkee region & it is far
ahead from their competitors in terms of customers. Which have come just
now in the city have capture a good market. Jio is capturing a lot of market
because of its good services in rural area. In starting it is well accepted by the
people by its low call rate & some and good connectivity. Jio management is
not able to make their services available to the general customer.
But the Airtel is also creating an image on the high-class customers by its
good network and good quality of voice in the long distance. The Airtel is the
choice of the high class and the people who worked in the higher position.
68
hard to manage this transition period. MNP is crucial for Jio as a large number of
3. Highly dependent upon data consumption: - As per the current trend around
60 to 70 percent of revenue comes from voice calling and hence there is a huge
potential loss for making voice calling free. This loss can be offset only when
Opportunity
quality service at competitive rate it can quickly grab large number of customers.
2. Increasing rate of data consumption: In its earlier phase almost entire revenue
of the mobile service provider was from voice calling. However since last two
years the proportion of revenue from data users is increasing exponentially which
has resulted in almost 30-40% of the total revenue. Lower data tariff may further
increase data consumption and thus contribute more to the revenue of company.
Threat
1. Saturated market: - The initial phase of rapid increase in subscriber is now over.
A new entrant like Jio needs a large customer base to cross breakeven point.
2. Highly competitive market:- After the entry of big players like Vodafone, Idea
73
3. Changing Government Policy: The changing government policy like cancelling
for call drop etc. has created uncertainty in the market causing adverse impact
Strengths
• Bharti Airtel has more than 254 million customers (July 2016). It is the largest
cellular provider in India, and also supplies broadba nd and telephone services -
as well as many other telecommunications services to both domestic and
corporate customers.
• Other stakeholders in Bharti Airtel include Sony-Ericsson , Nokia - and Sing Tel,
with whom they hold a strategic alliance. This means that the business has
access to knowledge and technology from other parts of the telecommunications
world.
• The company has covered the entire Indian nation with its network. This has
underpinned its large and rising customer base
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Weaknesses
• An often cited srcinal weakness is that when the business was started by Sunil
Bharti Mittal over 30 years ago, the business has little knowledge and experience
of how a cellular telephone system actually worked. So the start-up business had
to outsource to industry experts in the field.
• Until recently Airtel did not own its own towers, which was a particular strength of
some of its competitors such as Hutchison Essar. Towers are important if your
company wishes to provide wide coverage nationally.
• The fact that the Airtel has not pulled off a deal with South Africa's MTN could
signal the lack of any real emergi ng market invest ment opportunity for the
business once the Indian market has become mature.
Opportunities
•
The company possesses a customized version of the Google search engine
which will enhance broadband services to customers. The tie-up with Google can
only enhance the Airtel brand, and also provides advertising opportunities in
Indian for Google.
• Despite being forced to outsource much of its technical operations in the early
days, this allowed Airtel to work from its own blank sheet of paper, and to
question industry approaches and practices - for example replacing the
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11. If yes which service you preferred?
Jio [ ] Airtel [ ]
thers
O [ ]
o
Cnnectivity [ ] FreeSMS [ ]
Price [ ] FreeChatting [ ]
FreeRoaming[ ] GroupMassaging [ ]
13. References: -
Name: …………………………………………………..
Address: ………………………………………………..
………………………………………………..
…………………………………………………
………………………………………………..
Phone No: ………………………………………………
Sign: ……………………………… Date: …………………………
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BIBLIOGRAPHY
TEXT BOOK
• Philip Kotler (2004) Marketing management
• C.R. Kothari (2004) Research Methodology
•
G.C.Berry (2002) Marketing Research
WEB SITE
83
• www.google.com
• www.jio.com
• www.airtel.in
MAGAZINE
• My Mobile
• Business world
• Digital India
• Business India
84