Comparitive Analysis of BSNL(Product & Services) With Its Competitors

A Project On Market Research on comparative analysis of BSNL with its competitors (A Govt of India Undertaking) Master of business administration (Marketing )

Submitted in the partial fulfilment of the requirement for award of Master of Business Administration of Tilak Maharashtra University, Pune.

Submitted by Sumit Singh PRN-07208014831 Of (Institute of Business Studies & Research) Navi Mumbai

Tilak Maharashtra University Gultekdi, Pune 411037.

Institute Of Business Studies & Research Research,, Navi Mumbai 1

Sumit Singh (MBA-marketi (MBA-marketing ng 2008-10)



PREFACE

The MBA programme is well structured and integrated course of business studies. In every professional course training is an important factor. The main objective of practical training is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. Profes Pro fessor sorss giv givee us the theor oreti etical cal kno knowle wledge dge of var variou iouss sub subjec jects ts in the col colleg legee but we practically exposed of such subjects when we get the training in the organisation. Duri Du ring ng th thee wh whol olee tr trai aini ning ng I go gott a lo lott of ex expe peri rien ence ce an and d ca came me to kn know ow ab abou outt th thee management practices in real that how it differs from those of theoretical knowledge and the practically in the real life.

In tod today’ ay’ss gl globa obaliz lizee wor world, ld, whe where re cut cutth throa roatt com compet petiti ition on is pre prevai vailin ling g in the ma marke rket, t, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in carrier activities and it is true that, “ Experience is the Best Teacher”



ACKNOWLEDGEMENT

With immense pleasure, I would like to present the project report for BSNL. It has been an enriching experience for me to undergo my summer training at BSNL which would not have possible without the goodwill and support of the people around. As a student of INSTITUTE OF BUSNINESS STUDIES & RESEARCH, NAVI MUMBAI, I would like to express my sincere thanks to all those who helped

me during my practical training programme. Words are insufficient to express my gratitude towards Mr. R. P. Tiwari, Document Section and BSNL. I am very thankful to Mr. B. B. Singh, Principle of RTTC Lucknow, who helped me at every step whenever needed. At last but not the least my grateful thanks is also extended to Prof- Dev Burman (faculty MBAMarketing, IBSAR Navi Mumbai) and my thanks to all my faculty members and director for the proper guidance and assistance extended by them. I am also grateful to my parents and friends to encourage & giving me moral support. However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notices.



CONTENT Sr. No.

Chapter Name

Page. No.

Chapter 1.

Rational of the Study

4

Chapter 2.

Objective of the Study 1-Tital of the Object 2-Objective of the Study

6-9

3-Scope of the Study Chapter 3.

Profile of the Company

1 0- 24

Chapter 4.

Review of the Literature

2 5- 3 6

Chapter 5.

Research Methodology.

37 - 40

Chapter 6.

Data Analysis and Interpretation

41- 54

Chapter 7.

Findings

5 5- 5 8

Chapter 8.

Limitations of the Study

Chapter 9.

Recommendation & suggestions Bibliography


63


Chapter-1

RATIONAL OF THE STUDY



Over the last few years, the telecom industry in India has been going through a period of intense change. Needs of the retail as well as corporate customers are changing and their expectations in terms of service and quality are getting more demanding. BSNL is facing increasingly stiff competition from private players. Over the recent past, BSNL’s performance has come under considerable pressure. It has not been able to grow in line with the market and has been steadily losing market share. The lack of top-line growth coupled with increasing costs has put pressure on BSNL’s operating performance in the past few years.

BSNL has engaged the services of The Boston Consulting Group (BCG) to help develop an overall strategy strat egy and trans transforma formation tion plan for the organi organizatio zation. n. BCG is a leadi leading ng global consul consulting ting firm and has extensive extens ive experience working with worki working ng with major telecom incumbents incumbents global globally ly and in India on issues of strategy, sales & marketing strategy and large scale transformations. BCG has significant experience of working with large Public Sector undertakings to help them define and implement their change agenda.

This transformati transformation on exerci exercise, se, calle called d Proje Project ct SHIKH SHIKHAR, AR, will cover development development of an overal overalll stra strategic tegic agenda across BSNL’s key businesses including including custo customer mer segmentation, segmentation, sales channel management as well as product management. It will also look at appropriate strategic initiatives in operations as well as in Human Resource Management in order to implement the new strategy effectively. All this is aimed at making BSNL more capable to thrive in a very competitive market place.



Chapter-2

OBJECTIVE OF THE STUDY



TITLE OF THE PROJECT

“Comparative Analysis of BSNL (services & products) With Its Competitors”



OBJECTIVE OF THE STUDYThe objective of the study was to define the kind of problem BSNL is facing to sustain in the market. What more have to be done to fight with the increasing competition in the market? One of the major objectives of the study was to find out the market behaviour as per the today’s condition. The original motive of the project was to increase sales and generate revenue, that’s the reason the research was more into find out if there is any issue regarding commission. We focused on to the retailers because they were the right person who can let us know the real market condition and things to improve to increase the sales. BSNL has lost its number one position it the market therefore the senior officials adopted this method to find out the reasons and want its number one tag again. Doubtlessly BSNL is making making profit but despite being a govt of INDIA enterprise enterprise it is not the number one company in the telecom sector. Primary Objective. •

To get the cause of losing the number 1 position in the market.

•

To get the position again and trust of customers on BSNL.

•

To know what kind of improvement is required to be the best in telecom sector.

•

To understand the current market position and to evaluate the improvements required for BSNL

•

To understand the product changes needed to give it a competitive edge in the market.

Secondary objective•

To increase the sales and revenue.

•

To defeat its competitors.

•

To find out the strategies adopted by the other companies.



•

To find why are those companies doing better than BSNL.

•

What are the areas where BSNL is lacking.

SCOPE OF THE STUDY

So far as I believe that this research is going to be a huge success, because the kind of objective it has is mind-blowing. This project will surely help BSNL to get its position back. This project has a vast scope in U.P.(east) because it has been planned in this manner. It’s very obvious that people have their trust on BSNL and has a big number of subscribers. BSNL is not only into mobile services but also it is INDIA’s biggest landline service provider. BSNL has recently launched 3G mobile service which is a revolution in telecom sector. BSNL’s broadband internet service is a mile stone. Services of BSNL are all perfect but right approach and strategy will make it easier for the customers to be familiar with it. I believe that the research programme will surely help BSNL to get a strong grip into the market. This kind of research programme should be conducted time to time to find what’s going on it the market and what is to be done to handle the scenario. From my study’s point of view it was a great experience. I interacted with the people and tried my level best to find out problems and best solutions of those problems. I used all my skills and knowledge in that research. I learned a lot from this research and it helped me to remove the hesitations that I had earlier in interacting with the people. I came to know how the system works in corporate co rporate world.



Chapter-3

COMPANY PROFILE

BHARAT SANCHAR NIGAM LIMITED .



(A govt. of India enterprise) Website www.bsnl.co.in

Bharat Bhar at Sanc Sanchar har Nig Nigam am Ltd Ltd.. for formed med in Oct October ober,, 2000 2000,, is Wor World' ld'ss 7th lar larges gestt Tel Telecom ecommuni municat cation ionss Company providing comprehensive range of telecom services in India: Wire line, CDMA mobile, GSM Mobil Mob ile, e, Int Intern ernet, et, Bro Broadba adband, nd, Car Carri rier er ser servic vice, e, MPL MPLS-V S-VPN, PN, VSA VSAT, T, VoI VoIP P ser servic vices, es, IN Ser Servic vices es etc etc.. Presently

it

is

on e

of

the

largest

&

leading

public

sector

units

in

India.

BSNL BSN L has ins instal talled led Qua Qualit lity y Tel Teleco ecom m Net Networ work k in the cou countr ntry y and now foc focusi using ng on im impro provin ving g it 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, 48.11 Million GSM Capacity, more than 37382 fixed exchanges, 44966 BTS, 3140 Node B ( 3G BTS), 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting

6 02

Districts,

73 30

cities/towns

and

5.5

Lakhs

villages.

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

OBLIGATIONS 1. Towards customers and dealers

To provide prompt, courteous and efficient service and quality of products/services at fair and reasonable services. 2. Towards employees  

Develop their capability and advancement through appropriate training and career planning

Expeditious redressed of grievances





Fair dealings with recognized recognized repre representat sentatives ives of emplo employees yees in pursu pursuance ance of healt healthy hy trade union practices and sound personnel policies

CORPORATE SOCIAL RESPONSIBILITIES

BSNL is committed to provide quality Telecom Services at affordable price to the citizens of the remotest part of the Country. BSNL is making all effort to ensure that the main objectives of the new Telecom Policy 1999 (salient points indicated below) are achieved: Access to tele telecommuni communication cationss is of utmos utmostt impor importance tance for achieve achievement ment of the countr country's y's social and economic goals. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the new Telecom policy 1999. Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country's economy encourage development of telecommunication facilities in remote, hilly and tribal areas of the country; Transform in a time bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players.

EMPLOYEE’S WELFARE ACTIVITIES Commitment Commi tment towards the princ principles iples of corpor corporate ate soci social al respo responsibi nsibiliti lities es is inbui inbuilt lt within the corporate philosophy of BSNL. A very wide range of welfare programmes, with a focus on the employees’ welfare is continuously implemented by the Staff Welfare Board of the Company.

ASSISTANCE DURING NATURAL CALAMITIES BSNL always remains awake of its responsibility as a corporate citizen. When the destructive Tsunami waves struck the Indian shores, BSNL Company swung into action immediately for providing relief to those affected in the coastal areas. Communication networks at the Coastal areas of Tamil Nadu, Kerala and the Andaman and Nicobar Islands – worst hit in the Tsunami - were promptly restored within the



shortest possible time. BSNL along with the employees contributed an amount of Rs. 2,207 lakhs to the Prime Minister’s Relief Fund. Telephone Services were restored in record time in the flood-hit areas of Gujarat and Maharashtra.

BSNL’S ASPIRATION BSNL has created an aspiration to guide its transformation process. This aspiration was developed in a very systematic manner and involved interactions and deliberations among employees from various cadres, designations and geographies.

BSNL’S ASPIRATION IS TO – TO – •

Be the leading telecom service provider in India with global presence

•

Create a customer focused organization with excellence in sales, marketing and customer care.

•

Leverage Lever age technology technology to provi provide de affordable affordable and innova innovative tive products products servi services ces across customer customer segments.

•

Provide a conducive work environment en vironment with strong focus on performance.

•

Establish efficient business processes enabled by IT.

PROPOSED STRATEGY TO ACHIEVE ASPIRATION

Having defined this aspiration, we are working on the following key pillars of transformation •

Revitalise the business via – o

Focu Fo cusi sing ng on agg aggre ress ssiv ivee gr grow owth th in Mo Mobi bili lity ty (2 (2G/ G/3G 3G), ), Br Broa oadba dband nd an and d En Ente terp rpri rise se segment(i.e., corporate customers)

o

Reducing churn in the landline (including PCO) business and consolidating our position in the wholesale business (i.e., NLD)

o

Venturing into new areas to further drive growth such as infrastructure sharing, DTH, international expansion among others

•

Build operations excellence in the following critical areas – o

Marketing, sales and distribution

o

Product innovation and pricing

o

Customer service



•

o

Revenue assurance

o

Cost efficiency

Create a high performance organisation to achieve the above – o

Redesign the organisation structure, roles & responsibilities

o

Strengthen our HR policies and practices

o

Put in place a strong performance pe rformance management system and culture

PARTICULARS OF ORGANISATION Incorp Incorpora orated ted on 15.9.20 15.9.2000, 00, vide vide Regist Registrat ration ion No. 55-1077 55-107739, 39,

dated the 15th September, September, 2000 and became entitled entitled to commence commence business with effect from 19th September, 2000.

Thee Compa Th Company ny (BSNL (BSNL)) took took over over the the .busi .busine ness ss of prov provid idin ing g DATE INCORPORATION :

telecom services and network management throughout the country O F except the metro cities of Delhi and Mumbai of the erstwhile servic servicee provid providing ing departm department entss of the Govt. Govt. of India, India, i.e., i.e., the Departments Departments of Telecom Services and Telecom Telecom Operations Operations i.e. 1.10.2000 pursuant to an MoU signed between the BSNL and the Govt. of India. Government Company under Section 617 of the Companies Act,

TYPE OF COMPANY

1956.

ADMINISTRATIVE

Govt. Govt. of India, India, Minist Ministry ry of Commun Communicat ication ion and Inform Informati ation on

MINISTRY DETAILS DISINVESTMENTS

Technology, Department of Telecommunications. OF The entire share capital of the Company is held by the Govt. of



India.. SHAREHOLDING PATTERN

Government of India is holding 100% of the share capital of the

Company. LISTING WITH Not applicable, as the BSNL is an unlisted company. STOCK EXCHANGES Authorised Capital – Rs.17, 500 crores, divided into 1, 000, 00, 00,000[One Thousand Crores] Equity Shares of Rs.10/- each; and

SHARE CAPITAL

750,, 00, 00,000 750 00,000 [Seven [Seven Hundre Hundred d and Fifty Fifty Crores Crores]] Prefer Preferenc encee Shares of Rs.10/- each. Paid Up Share Capital Capital - Rs.5,000/Rs.5,000/- crores crores of Equity Shares Shares and

OBJECTIVES THE COMPANY

PROC PR OCED EDUR URES ES

Rs.7,500/- crores of Preference Share Capital OF As set out in the objects clause of the Company’s Memorandum of Association.

FOLL FO LLOW OWED ED

IN

THE TH E

DECI DE CISI SION ON-M -MAK AKIN ING G

PROC PR OCES ESS, S,

INCL IN CLUD UDIN ING G

CHANNELS OF SUPERVISION AND ACCOUNTABILITY



Overall management of the Company is vested with the Board of Directors of the Company. The Board of

Directors

is

the

highest

decision

making

bod y

within

the

Company.

As pe perr th thee pr provi ovisi sion onss of th thee Co Comp mpan anie iess Ac Act, t, 195 1956 6 ce cert rtai ain n ma matt tter erss re requi quire re th thee app appro roval val of th thee shareholders

of

the

Company

in

General

Meeting.

The Board of Directors is accountable to the shareholders of the Company, which is the ultimate authority author ity of a Company. Bharat Sanchar Sanchar Nigam Limited Limited being a Publi Publicc Sector Enterprise Enterprise (PSE), the Board of Directors of the Company is also accountable accou ntable to Government of India. The day-to-day management of the Company is entrusted with the Chairman cum Managing Director and the Functional Directors and Executives of the Company. For this purpose, the Board of Directors



has delegated powers to the Chairman and Managing Director, Functional Directors, and the Executives of the Company through Delegation of Financial and Administrative Powers. The Board of Directors has also delegated few of its specific powers to a committee, known as Management Committee comprising of CMD and Functi Functional onal Direc Directors. tors. Functional Functional Direc Directors tors and execut executives ives exercise their decis decision-m ion-making aking powers

as

per

this

delegation

of

powers.

The Chairman cum Managing Director, Functional Directors and other Executives are accountable to Board of Directors for proper discharge of their duties & responsibilities. The powers, which are not delegated are exercised by the Board of Directors subject to the restrictions and provisions of the Companies Act, 1956 and the Articles of Association of the Company.

A. GLIMPSES OF MAIN SERVICES OFFERED



1. BASIC AND LIMITED MOBILE TELEPHONE SERVICES BSNL is the leading service provider in the country in the Basic Telephone Services. As of now more than 35 million Direct Exchange Lines & more than 2.2.Million telephones in the Limited Mobile telephone Services are existing. BSNL has provides a number of attractive tariff packages & Plans which shall further strengthen its subscriber base.

2. CELLULAR MOBILE TELEPHONE SERVICES BSNL’s GSM Technology based Cellular Network reached a long way, covering 20,836 cities/towns with a subscriber base of over 4.67 Crores as on 31st March 2009 out of which 4.31 crores cellular telephone are in pre-paid segment

India' Ind ia'ss fas fastes testt gro growin wing g cel cellul lular ar ser servic vicee , alo along ng wit with h pos postpa tpaid id and pre prepai paid d ser servic vices es bri brings ngs cel cellul lular ar telephony

to

the

masses,

through

innovative

technology

and

strategic

pricing.

This ambitious service uses state-of-the-art GSM technology to attain global excellence and leadership in business. Our entry into this sector has brought GSM cellular service at an affordable cost to the common man. All serving a single objective, to provide better communication to millions across India. Customers have reposed tremendous faith in BSNL and it has enrolled over 30 Lakh Cellular customers within ten months of launch of Cellular service, an unprecedented mark in Indian Cellular Market.



Why should you choose BSNL Mobile? •

For the first time in the country, all major towns and cities are covered through our network

•

All major national and state highways are covered

•

National and International SMS facility

•

International roaming available for more than 300 networks across the world.

•

The facility of one number roaming across the country co untry

•

Appropriate and reasonable tariff packages to suit every pocket

•

Absolute transparency in billing. All regular features of cellular telephony, such as SMS as well as advanced features like MMS are available.

•

24 Hour helpline all across the country.

•

The only Mobile service available throughout the country including Jammu and Kashmir and North Eastern states like Arunachal Pradesh, Nagaland, Mizoram etc.

3 . INTERNET SERVICES BSNL BSN L off offer erss Dia Dialup lup Int Intern ernet et ser servic vices es to the cus custom tomers ers by Pos Post-p t-paid aid service service wit with h the bra brand nd nam namee ‘Netone’, ‘Neto ne’, and pre-pa pre-paid id service with the brand name ‘Sancharnet’. ‘Sancharnet’. The postpost-paid paid service is a CLI based access service, currently operational in 100 cities. Sancharnet is available on local call basis throughout India to ISDN and PSTN subscribers. The Internet Dhaba scheme of the Company aims to further promote Internet usage in rural and semi urban areas.



5. BROADBAND SERVICES BSNL has launched its broadband services under brand name “BSNL BROADBAND ”on 14-01-05. This offers offers High Speed Internet Internet Access with speed ranging ranging from 256 Kbps to 8 Mbps. Ever since since its inception BSNL is continuously expanding its broadband network in response to ever growing demand of broadband service throughout India Present customer base is 3.56 million, with equipped capacity of 6.1 million. BSNL Broadband service is available in more than 3800 cities & 83000 villages. The services provided are •

High Speed Internet Connectivity(up to 8 Mbps)

•

Band width on Demand(planned)

•

Virtual Private Network(VPN) service over broadband

•

Dial VPN services to MPLS VPN customers

•

IPTV services(at present available in 66 cities)

•

Games on Demand Service

•

Video tutoring service

•

VOIP

•

Video Surveillance service

•

Entertainment portal.

BUSINESS DEVELOPMENT

Business Busin ess Development Cell is respon responsible sible for develo developing ping new business revenue stre streams, ams, new produc product, t, tying tyin g up with other vendors vendors for providing providing joint offering, offering, etc. BD cell has tied up with vendors/oth vendors/other er organizations for Bundling of products with BSNL service like Handset Bundling (2 G & 3 G), PC



Bundlin Bund ling, g, GSM PCO Bund Bundli ling, ng, RF Vend Vendor or emp empanel anelmen ment, t, Dat Dataa Car Card d Bun Bundli dling ng for Edge Edge/GP /GPRS RS connectivity. BD has tied up with other organizations to enhance the business of BSNL like alliance with IOC, BPCL, NFL etc for selling selling BSNL products products through their their outlets. outlets. BSNL is also in process process of tie up with big retaill playe retai players rs like Reli Reliance ance Retail, More, Spencer Spencer,, Subhik Subhiksha, sha, Mobile Zone, other similar similar outlet etc for sellin sel ling g BSN BSNL L ser servic vices. es.

Simil Sim ilar ar all allian iance ce has been for forged ged with NIC/IL&F NIC/IL&FS S to sel selll BSN BSNL L pro produc ducts ts

through throug h CSCs. Throug Through h other alliances, alliances, we have been able to bring out Co-branded/Whit Co-branded/Whitee labelled services like Blackberry, Nokia Pushmail etc. BD Cell is implementing Free EPABX scheme of BSNL through empanelment of EPABX Franchisees to provide “Free of cost EPABX Systems” to corporate customers as a business development initiative to retain retai n the big corporate corporate subscribers. subscribers. BSNL has also tied up with M/s Polycom Polycom for providing their their rich Video Conferencing Conferencing application application based on their Real presence technology. technology. Effor Efforts ts are being made for similar tie up with M/s Cisco for providing Video Conferencing solution to the end-users. With the advent of proliferation of Broadband through mobile and landline, it has become very important that low cost devices for both landline and mobile i.e. 3G/Wimax should be made available to the customers custom ers so that large volume of subscriber subscriber base in these areas may be achieved. BD Cell will make efforts to tie up with the vendors for broadly three types of low cost Broadband devices like Los cost PC/Laptop, MIDs (Mobile Internet Devices) Wimax enable devices which will have the features of more than smart phone but will be the cost effective solution for net surfing.

6. Brand Equity. We may think what is Brand equity? In simple words it is how far people are willing to pay if we increase our prices i.e. premium for our services. We may feel happy to say there is lot of black marketing of our SIM cards. Is it a healthy sign? We reduce prices when competitors launch new schemes. scheme s. Does it imply poor brand equity? equity? Brand Equity Equity can be built with good equity of quality quality of services at the affordable price. Continuous innovation in product and delivery of services with the appropriate pricing is the key strategy for developing the trust in customer so that he keeps his loyalty with BSNL. We have to be first mover in our efforts for product and price differentiation. Presently the market is in growth phase and price could be a differentiating factor, but how long? Is any scope left for Institute Of Business Studies & Research Research,, Navi Mumbai 23


further cuts? Ultimately it is the quality, customer care, and timely availability apart from price, which will matter. Quality depends on many parameters such as tangibles (like physical facilities, Appearance of per person sonnel nel,, Tool Toolss or equ equipm ipment ent use used d to pro provid videe ser servic vice, e, Phy Physic sical al appe appeara arance nce of ser servic vice, e, Oth Other er customers custom ers in the servi service ce facil facility) ity),, Relia Reliabilit bility, y, Respons Responsivenes iveness, s, Compet Competence, ence, Court Courtesy, esy, Credi Credibilit bility, y, Security, Access, and Communications with customer, Understanding etc. Quality definitely commands premium. premium. Why are people willing willing to pay more for Raymonds Raymonds or Adidas or Sony when comparable offerss exist in market? One may say that customer offer customer perception perception of quali quality ty is not built overnight; overnight; it may require a brand and brand building investments apart from a quality product. How many brands do we have? Our investments get diluted with more number of brands. Even Airtel merged the Touchtel brand with more popular one. Can’t we have just one brand i.e. BSNL? Have we ever tried to examine our revenue breakup? While majority of the revenue comes from landline (DELs plus PCOs), how many people know of Bfone? CellOne happens to be more popular.

So where shoul should d our marketing marketing & sales effort be more? Wholesale, Wholesale, retail or corporate! What means do we need to use to promote our products and in what proportion? Advertising, PR, Franchisees, 24x7 customer care, business development etc. What activities should be taken up by Corporate Office, Circles and SSAs? In advertising there is need to synergize our activities at Corporate, Circle and SSA level. In this regard Corporate office has issued division of work guidelines. There is also a need to have good relation with our advertising agencies and simultaneously their performance need to be monitored for taking quality output from them. What is USP (Unique Selling Proposition) for BSNL? A Government company which delivers. A government company which gives service better than private could be a deadly combination, which no competitor can copy.



Social Soci al Responsi Resp onsibili bility ty. BSNL was the most trusted telecom brand in year 2003 & 2004. BSNL has been given Golden Peacock award for Best Corporate Social responsibility. These achievements need to be highlighted through publicc relat publi relation ion exercise like press meet. This will help BSNL in building its marketing image. In sale saless and dis distri tribut bution ion fro front nt tho though ugh it has ove overr one one-la -lakh kh ret retail ailers ers,, 1000 fra franchi nchisee sees, s, 3300 CSC CSCs, s, 3600 36000 0 exchanges why is BSNL not visible like others? Why can’t BSNL utilize all possible space? Can’t it leverage its franchisee and STD-PCO strengths? Can it make these outlets as its core strength? Why BSNL’s recharge coupons, India Telephone Cards are in shortage when there is no capacity constraint? Does it imply that BSNL’s planning for printing, inventory management, logistics, and supply chain and of course franchisee management is inefficient? Do it has targets for these just like DELs & CellOne? Why can’t BSNL leverage this huge network for better customer care and improve collection efficiency? BSNL BSN L mus mustt rea realiz lizee tha thatt wit with h wai waiver ver of sec securi urity ty depo deposit sits, s, no OYT sch scheme emes, s, no adv advance ance rentals, rentals, adjus adj ustm tmen entt of la landl ndlin inee se secur curit ity y fo forr Ce Cell llOn One, e, BS BSNL NL do don’ n’tt get fi fixe xed d dep depos osit itss to me meet et ou ourr fu fund ndss requirements. Everything has to be met from Operating revenues. We need to improve collections, realize bills early, not on the last day of payment and reduce bad debts. We need to provide 24X7 culture in our organization, though we have been providing operation and maintenance on 24X7 basis in the past and we will continue to provide in future too, but what about provisioning customer care and marketing on 24X7 basis?



SWOT Analysis of BSNL

Strength :•

It has a competitive pricing policy.

•

BSNL provides continuous training, career advancement opportunities and a self motivated work environment to its employees.

•

BSNL has a corporate culture of mutual respect and is an excellent service provider.

•

BSNL maintains solid partnerships with its customers.

Weaknesses :•

Although it is investing too much in R&D but its marketing skills are below average.

•

Although it is growing very fast but at the same time it is losing its customers as well because the competitors are chasing close behind.

Opportunities :•

BSNL can retain its customers by improving its marketing skills.

•

It can establish a world-wide knowledge-broadcast system via the internet.

•

The group can strengthen and expedite research & development in order to deliver products of top international standards.

Threats :•

External factors like political instability and economic instability which are affecting the business environment.



•

The other threats can be the market saturation in term of business opportunities available in the conventional telecom business.

Chapter-4

REVIEW OF THE LITERATURE



Courtesy – Marketing Management (Philip Kotler)

Marketing research system Marketing managers often commission formal marketing studies of problems and opportunities. They may request a market survey; a product- preference test , a sales forecast by region, or an advertising evaluation. It’s the job of the marketing researcher to produce insight into the customer’s attitude and buying behaviour; marketing insights provide diagnostic information about how and why we observe certain effects in the marketplace, and what that means to marketers. Philip Kotler defines Marketing research as the systematic design, collection analysis and reporting of data and findings relevant to a specific marketing situation facing the company. Spending on marketing research topped $24 billion global glo bally ly in 200 2006 6 acco accordi rding ng to ESO ESOMAR MAR,, the wor world ld ass associ ociati ation on of opi opinio nion n and mar market ket res resear earch ch professionals. Most large companies have their own marketing research department, which often play crucial roles within the organisation. Procter & Gamble’s Consumer & Market Knowledge (CMK) market research function has dedicated CMK groups working for P&G businesses around the world to improve their brand strategy and program execution, as well as a relatively smaller , centralized corporate CMK group that focuses focuses on a variety of big- picture picture concer concerned ned that transcend transcend any speci specific fic line of business. business. Yet ,



marketing market ing departments. departments. Often at much smaller companies, companies, everyone everyone carries out marketing marketing resea research rch – including the customers. Companies normally budget marketing research at 1% to 2% of company sales. A large percentage of that is spent on the services of outside firms. Marketing research firms fall into three categories:

1-syndicated-services research firms- these firms gather consumer and information which they sell for a free. For example- the Natio Nation n Counci Councill for Applied Economic Research (NCAER), (NCAER), ACNie ACNielsenlsen-ORGORGMARG, and IMR International. 2-Custom marketing research firms- They design an carry out research studies for various clients based on specific briefs. 3-Special Speciality-line ity-line marketing researc research h firms- these firms provide specialized research services such as developing a research brief collecting field, and preparing data analysis and reports for other firms. A company can hire the services of a marketing research firm or conduct research in creative and affordable ways such as: 1- Eng Engagi aging ng pro profes fessor sorss or students students to des design ign and cond conduct uct studies. studies. Many large companie companiess hire summer trainers from management institutes for cost-effective market research year after year. Awarding live projects to MBA students as part of their coursework is also a common practice. Monito itorin ring g publ publish ished ed inf inform ormati ation on and act action ionss sy syste stemat matica ically lly.. Thi Thiss may be done by 2- Mon examining newspapers, web sites, industry reports, and by visiting competitive outlets. Most companies such as Fuji photo film, use a combination of marketing research resources to study their industries, competitors, audiences, and channel strategies.

The marketing research process



Survey Research-

surveys surve ys are the best for descriptive descriptive resea research. rch. Companies undertake survey to

learn about people’s knowledge, beliefs, preference, and satisfaction. It requires development of a survey. Usually a questionnaire which the respondent are asked a sked to fill up.

QUESTIONNQIRE DOS AND DON’TS •

1-Ensure that questions are without bias. Don’t lead the respondent into the answer.



•

Make the questions as simple as possible. Questions that include multiple ideas or two questions in one will confuse respondents.

•

Make the questions specific. Sometimes it’s advisable to add memory cues. For example, be specific with time periods.

•

Avoid jargon or shorthand. Avoid trade jargon, acronyms, and initials not in everyday use.

•

Steer clear of sophisticated or uncommon words. Only use words in common speech.

•

Avoid ambiguous words such as “usually” or “frequently” have no specific meaning.

•

Avoid questions with a negative in them. It is better to say. “Do you ever...?” than “Do you never....?”

•

Avoid hypothetical hypothetical quest questions. ions. It’s diffi difficult cult to answer questions about imagi imaginary nary situa situations tions.. Answers aren’t necessary reliable.

•

Do not use words that could be misheard. This is especially important when administering the interview over the telephone. “What is your opinion of sects”? Could yield interesting but not necessarily relevant answers.

•

Desens Des ensit itize ize que questi stions ons by usi using ng res respons ponsee ban bands. ds. To ask peo people ple the their ir age com compan panies ies abou aboutt employee turnover rates, offer a range of response bands instead of precises numbers.

•

Ensure that fixed response does not overlap.

•

Allow for “other” in fixed-response questions. Precoded answer will always allow for a response other than those listed.

Courtesy- BSNL website

Marketing strategies of BSNL



Introduction. Our visions begin with our desires . Audre Lorde

We all have some visions of ourselves and our future, and that vision creates consequences. More than any other factor, vision affects the choices we make and the way we spend our time. Visions drive consequences. Principles drive results. Key is to base vision on principles. Stephen R Covey.

It is true for individuals as well as organizations. The strongest form of vision / motivation is to base vision on “What Legacy we want to leave.” And to achieve it we must take a principled cantered cantered path. History is full of examples that many organizations have vanished grown and vanished overnight as their path to achieve vision was not based on principled way. Vision of the organization can only be translated into reality, if it is shared by one and all. The best way to implement is to involve them in formulation. But even if it is conceived by higher management then it has to be explained to each and every individual of the organization, otherwise it may remain as a showpiece. Marketing vision of the BSNL has to be based on overall mission and vision of the organization.

Marketing Objective. The ultimate objective of any marketing activity is to satisfy the customers and today even a step ahead i.e. ‘delighting’ the customers, for which customers are offered something beyond their expectations from the service or the product. The objective being to acquire and retain the customers, who should continually feel that they are getting more value of the money, they are departing with.



Marketing Market ing is the establishment, establishment, development, development, maint maintenance enance and optim optimizati ization on of longlong-term term mutually valua val uabl blee re rela lati tions onshi hips ps bet betwe ween en con consu sume mers rs an and d or orga gani nisa sati tion on.. Su Succ cces essf sful ul Ma Mark rket etin ing g fo focu cuse sess on understanding the needs and desires of the customers and is achieved by placing these needs at the heart of bus busine iness ss by int integr egrati ating ng the them m wit with h the org organi anisat sation ion str strate ategy, gy, peop people, le, tec technol hnology ogy and bus busine iness ss processes. At its most basic, Marketing involves customers, organisations and relationships and the combination creates the need for the management. Marketing is about creating a competitive advantage by being the best at understanding, communicating, and delivering and developing existing customer relationships in addition to creating and keeping new customers. The concept of the product life cycle is giving way to customer life cycle, focusing on developing products that anticipate the future needs of existing customers and creating services that extend the existing customer relationship beyond the mere transaction. The customer life cycle will focus on lengthening the life span of the customer with the organisation rather than the endurance of a partic particula ularr pro produc duct. t. Cus Custom tomers ers have chan changin ging g need needss as the their ir lif lifee sty styles les alt alterer- the dev develo elopme pment nt and provision of products and/or services that continuously seek to satisfy those needs is good Marketing. The Marketing will focus greater attention on how to deliver customer satisfaction and organisation will begin to structure itself around customer segments and not product lines. A good Marketing Strategy will take the business vision and apply it to the customer base. According to the Dictionary of Marketing Terms, 2nd edition, published by the American Marketing Association, c1995, “ Marke Marketin ting g is the pr proc ocess ess of pl plann anning ing an and d ex exec ecuti uting ng the co conc ncept eption ion,, pri prici cing, ng, pro promo moti tion, on, an and d dist di stri ribu buti tion on of id idea eas, s, go good ods, s, an and d se serv rvic ices es to cr crea eate te ex exch chan ange gess th that at sa sati tisf sfyy in indi divi vidu dual al an and d organizational objectives.”

Once marketing is understood, we can define market analyzing zing market marketing ing marketing ing managem management ent process as analy opportu oppo rtunit nities ies,, res resear earchi ching ng and sel select ecting ing tar target get mar market kets, s, des design igning ing mar market keting ing str strate ategie gies, s, pla planni nning ng marketing programs, and organizing, implementing, and controlling the marketing efforts. In si simp mple le wo word rdss it im impl plie iess a bu buye yer, r, a se sell ller er,, bo bonde nded d by th thee mu mutu tual al nee need, d, sa sati tisf sfyi ying ng of offe ferr an and d a medium/process to exchange the offer. 3. Marketing 3. Marketing Process.



We oft often en tal talk k of mar market keting ing & Sal Sales es and oft often en use it int interc erchan hangeab geably ly wit without hout understa understandi nding ng the difference in it. Marketing is everything we do to get and leverage a client relationship. Marketing process is broad and includes all of the following: v

Discovering what product, service or idea customers want.

v

Producing a product with the appropriate features and quality.

v

Pricing the product correctly.

v

Promoting the product; spreading the word about why customers should buy it.

v

Selling and delivering the product into the hands of the customer.

Selling is one activity of the entire marketing process. Selling is the act of persuading or influencing a customer to buy (actually exchange something of value for) a product or service. Marketing activities support sales efforts.

4. Contrasting

the

Sales

Concept

with

the

Marketing

Concept :-

We Sell Confidence. Confidence .

The concepts surrounding both selling and marketing also differ. There is a need for both selling and marketing approaches in different situations. One approach is not always right and the other always wrong - it depends upon the particular situation. In a marketing approach, more listening to and eventual accommodation of the target market occurs. Two-way communication (sometimes between a salesperson and a customer) is emphasized in marketing so learning can take place and product offerings can be improved. A salesperson using the sales concept, on the other hand, sometimes has the ability to individualize components of a sale, but the emphasis is ordinarily upon helping the customer determine if they want the product, or a variation on it, that is already being offered by the company. In the sales approach, not much time is spent learning what the customer's ideal product would be because the salesperson has little say in seein seeing g that their company's product is modified. Furthermore, Furthermore, they aren't rewarded for spendi spending ng time listening to the customer's desires unless they have a product to match their desires that will result in a sale. The 7Ps for service marketing marketing (Prod (Product, uct, price, place, promot promotion, ion, physical evidence, people & proces process) s) are the means to attain, nurture, & retain the customers and not the end. Institute Of Business Studies & Research Research,, Navi Mumbai 34


5. Mission & Vision.

Here is a test to find whether your mission on earth is finished, If you are alive, it isn’t. Richa Ri chard rd Bach Ba ch.

Most of the big companies have a Vision & Mission statement so as to guide their all energy, efforts to realize it. BSNL also has a vision ‘To become the largest Telecom Service provider in South East Asia’. Firs Fi rstl tly y we nee need d to und under erst stand and th thee par param amet eter er fo forr be bein ing g th thee la larg rges est. t. Is it re reve venu nue, e, AR ARPU PU,, pr prof ofit it,, subscribers, Network (no of exchanges, BTS etc)? From monopoly to multi operator scenario, BSNL’s market share is bound to reduce. But how much down we will let it? There are lot of similarities between British Telecom & us. One must keep watch on market share in monthly growth and take timely action. To improve our share, we need to acquire more than 50% of new acquisitions while maintaining earlier. This is quite challenging in this dynamic environment. Today landline base is reducing across globe, but why? Europe defines an operator with 25% or more market share as Significant market Power (SMP), while they intend to increase it to 40%. BSNL has been the largest operator and we must strive not only to maintain but enhance it. We need to act fast. Timely action is an essence. What should be our marketing Vision, will it help us in inspiring to achieve higher. Can it be something such as “To retain the highest market share, build highest brand equity and maximizing the profits?”

10. Summary

Vision is set in the Boardroom but realized in the battlefield. Each and every employee has to continuously lead this battle to be victorious. The corporate office is always willing to provide all resources. Together we can realize our o ur vision.

My philosophy is that not only are you responsible for your life, but doing the best at this moment puts you in the best place for next moment. Oprah Winfrey. Extension Of Marketing Strategy-Step Into Retailing Institute Of Business Studies & Research Research,, Navi Mumbai 35


BSNL seeks modern retail’s help to offer products and services BSNL is looking at modern retail chains to sell its products and Services. This is extension of the company’ aggressive marketing strategy. BSNL will enter into retailing agreements with the retail chains or leaders of consortium of retail chains that operate at least a 50 retail outlets across the country and have achieved an annual turn over of minimum Rs 50 core for the past two years. The agreements to be entered into for an initial period of two years will be for sale of sell of SIMs, instruments and other telecom products as well as telecom services being offered by the company across the country except in Mumbai and Delhi. Interestinglly, in these metro cities MTNL, a listed company of the government, is offering similar services. It would be possible to extend the validity period of the retail agreements in tune with the norms fixed by the company. The retailers while offering the products and services will be required to adhere to norms of verifying customer ID, etc, set out by the government. The licencee retailers will have to obtain duly singed, filledin application application form formss toget together her with ident identity ity proofs with advance payment for produc productt and services from the customers for submission to the company. BSNL Future plan

This year BSNL is hopeful of doing better in mobile as it has extra capacities in northern, eastern and southern region. BSNL presently has 46 million mobile connection and is planning to add 30 million in future. On the broadband front, it presently has 3.55 million subscribers. For wire line broadband services, the company has strong pan India coverage in terms of cities, districts, blocks and villages. Overall it has covered covere d 4,200 citi cities es and 40,000 villages villages as 21, 000 out of 28,000 rural exchanges exchanges have been broadb broadband and enable. . BSNL’s Expansion with Nokia

The expansion will enable BSNL to significantly increase its network coverage and capacity in the states of Jammu & Kashmir, Haryana, Uttaranchal, Uttar Pradesh (both east and west circles), Himachal Pradesh and Rajasthan. It gives BSNL the chance to introduce the benefits of mobility to 2 million new Indian subscribers, and underscores Nokia’s commitment to the dynamic Indian market. This is an important network expansion to BSNL as it strive to offer the best network coverage and capacity to its subscribers. Institute Of Business Studies & Research Research,, Navi Mumbai 36


Nok Nokia ia’s ’s ope opera rati tion onss in In Indi diaa in incl clude ude ne netw twor orks ks an and d te term rmin inal alss sa sale less di divi visi sion, on, th thre reee Re Rese sear arch ch an and d Develop Deve lopmen mentt fac facil iliti ities es and an upc upcomi oming ng man manufa ufactu cturin ring g fac facil ility ity in Chen Chennai nai tha thatt wil willl pro produce duce bot both h terminals and GSM infrastructure equipment. Nokia also plane to open a Global Networks operation Center in India by the end of the year.

PROJECT VIJAY – Mobility Pilot

Project Vijay - Mobility sales and distribution project (retailer’s survey) – is being piloted in UP (East) Telecom circle. The key objectives of the pilot are to A. Des Design ign chann channel el struc structur turee B. Cre Create ate chann channel el manag manageme ement nt team team C. Develo Develop p improved channel channel norms to improve retailer retailer reach, reach, create appropriate appropriate incentives incentives and improve performance monitoring of channel D. Imple Implement ment proposed proposed channel structu structure re for franchise franchiseee network E. Test other other recommendati recommendations ons on tariff tariff and handset bundling, bundling, if if appropriate appropriate

Key activities identified & initiated

1. Con Conduct duct comp compreh rehens ensive ive retai retailer ler surv survey ey to: to: −

Map existing telecom retail universe in pilot SSAs

−

Measure BSNL's reach and extraction in different types of outlets to identify improvement opportunities

2. Asses Assesss evolution evolution of mobile mobile market market in pilot pilot geographies geographies over over the next next 5 years −

Calculate overall and addressable market potential for BSNL

−

Help BSNL set the right targets for the franchisees and sub-franchisees

3. Desi Design gn the overall distrib distribution ution channel channel set up for mobiles mobiles including including franchisees, franchisees, sub-franc sub-franchisees hisees and and retailers 4. Creat Createe a new channe channell management management team compri comprising sing BSNL BSNL employe employees es to −

Manage franchisees and sub-franchisees (FMT)



−

Interact with retailers (RMT)

5. Revis Revisee existing existing channel management management norms and and processes processes (e.g., retailer retailer service service frequency, frequency, ordering ordering and delivery process, audit norms, etc.) 6. Defin Definee key metrics metrics for success success and and set up a rigorous rigorous monito monitoring ring mechanism mechanism

Scope of Project Vijay

Expand reach – ensure availability of BSNL products at more than 95% of telecom retail outlets capture significan signi ficantt share (25-30%) of retai retailer's ler's counter sales (increase (increase extrac extraction) tion) Build disti distinctiv nctivee channel management capabilities nurture and build strong and viable channel partner network



Chapter-5

RESEARCH METHODOLOGY

Research Methodology: Methodology:-1 – Research Research Problem •

To find the performing of BSNL vis-à-vis other companies like Reliance, Idea, Airtel, Vodafone In and TATA Indicom.

•

To know the consumer perception and their behaviour towards BSNL services.

•

To find out if the retailers are not satisfied with the co mmission provided by BSNL.



•

To find whether they sell the BSNL products or not, if no then why?

•

To find whether the distributers visit the market and supply the products to the retailers

•

To find out how much commission co mmission the other companies provide to the retailers?

2 – Research Objectives •

To know the preference of BSNL services with other competitive companies.

•

To know whether the distributers are doing their duty or not?

•

To find out what should be done to create the awareness about the products

3 – Information Requirement

First I had to know about the entire competitor present in telecom services segment (reputed and well established companies). Before going for the survey I had to know the comparative services and rates of all the competitors existing in the market. Because at the time of retailer’s interview they used to ask several questions regarding BSNL services and schemes. I had to know about the distributers and the respected areas they were dealing in. these were some of the information’s that I must know to make the interview interactive and interesting.

4 – Choice of Research Design

Despit Des pitee the dif diffic ficult ult of est establ ablish ishing ing an ent entire irely ly sat satisf isfact actory ory cla classi ssific ficati ation on sy syste stem, m, it is hel helpfu pfull to clas cl assi sifi fica cati tion on ma mark rket etin ing g re rese sear arch ch on th thee bas basis is of th thee fu fund ndam amen enta tall ob obje ject ctiv ives es of th thee re rese sear arch ch.. Consideration on the different type, their applicability, strengths, and their weakness will help to select the type best suited to a specific problem.

The two types of researches are: •

Exploratory Research



•

Conclusive Research

5 – Research Instrument used

If one wants to know that how much people buy a particular brand or what they think about the brand or a particular company. Thus the questionnaire method has come to be the more widely used of the true dataa co dat coll llec ecti tion on me meth thod od.. Th Thee que quest stio ionna nnair iree me meth thod od in ge gener neral al has a num number ber of ad adva vant ntag ages es.. A questionnaire consists of list of questions to be asked from the respondents and the space provided to record the answer.

Questionnaire in the project consists of:

Multiple Choice questions – question of this type offer the respondents an alternative to choose right answer among other. Sample design is a definite plan of obtaining some items from the whole population. The sample design used in this project is: Convenience Sampling – This type of sampling is chosen purely on the basis of convenience of the interviewer.

Sampling –



•

Sampling technique

Non- probability sampling

•

Sample units

People who are selling Telecom products

•

Sample size

100 respondents (age ranging Between 18 years to 65 years)

•

Method

Direct interview through Questionnaire

•

Data analysis method

Graphical method

•

Area of district

Lucknow/Allahabad district

•

Timing of survey

9:00 AM to 8:00 PM

7 – Field Work – Method used for data collection •

Questionnaire was prepared keeping the objective ob jective of research in mind.

•

Questions were asked to the respondents as regards to their willingness to use BSNL services.

•

The help of questionnaires conducted direct interviews, in order to get accurate information.

•

In order to get correct information I had to approach consumers ranging from 18 years to 65 years’



Chapter-7

DATA ANALYSIS AND INTERPRETATION



Primary Tabulation & Interpretation on the basis of Questionnaires

1-Do you sell SIM cards (of any brand) Yes-95% No-5%



Interpretation- This was the very first question of the Questionnaire. It was found that maximum

number of retailers sells the SIM cards but some of them do not deal with SIM cards, their concentration was only towards recharge

2-Do you sell recharges coupons (of any brand)?



Yes- (paper recharge) 90% Yes-(electronic recharge) 80% No- 10%

retailers sell ot or not or Interpretation- The second question was about recharge coupons, whether the retailers they only deal with SIM cards and E-TOP up. It was found that 90% of the retailer sell paper recharge and 80% of them were dealing with electronic recharge and 10% of them did not sell any kind of recharge. It was a general question for all the telecom brands. This was not a specific question about BSNL it was to get a brief idea about the shop dealing.



3-Do u sells BSNL SIM cards & recharge coupons? Yes- 60% No-40%

Interpretation- this question was to know whether they deal with BSNL mobile connections or not. I

found that 60% of the retailers deal with BSNL connections whereas 40% of the retailers do not entertain in BSNL connections. All the retailers had their own reasons not to deal with BSNL SIM cards. But it was very much because of BSNL’s week marketing strategy and unavailability of the required products. Again there are a lot of problems with the BSNL network, therefore customer do not show there interest towards BSNL and switching to other companies.

4-Who is the supplier of BSNL SIM cards to you? Institute Of Business Studies & Research Research,, Navi Mumbai 47


A-Distributers B-Big Retailers C-No one

Interpretation- the question was to found that who the distributer of that area. Whether they are being

able to fulfil the market demand or not and what kind of behaviour they have towards retailers. I found that none of the BSNL distributer deal properly. Retailers themselves have to go there and get the things they need. Demand of BSNL in the market is very high but because of unavailability of the products customers switch to other service provider. This is again not a good sign of good marketing. These are some of the reasons why people are losing their trust from BSNL and switching over other service provider.



Question-2 What all in you deal with along with the telecom products?

Interpretation- because telecom industry is a booming industry therefore each and every business person

are dealing with this why not they have any running business. Therefore people are not only running the separate telecom business but also doing this business in their running business shop or store. Today you can find telecom products in medical store also and not only in medical store but also in stationary store, agriculture store, general store and electronic stores also. There are some more business store where one can find telecom products



Question-3 Would you like to provide me some information regarding the selling of new mobile connections which you made in last month?

Interpretation- when the research was completed we took the sample of the selling of SIM cards and

divided it into parts as per retailer’s information. I found that customer shown their interest in Vodafone services more than any other company, BSNL also got good percentage but not satisfactory, as per the company’s potential. This can be increased by improving marketing strategy and implementing that in a proper way.



Question -1 Would you like to provide some information about the total selling in terms of the money in the last month?

Interpretation- in terms of sales BSNL is not too behind than Airtel, which was the best gainer of the

last month, BSL can do much better than this if it come back with its full potential. This is not the exact figure of the selling but an approximately idea. BSNL has a strong customer base the only thing is needed to make BSNL the India’s number one company is proper implementation of the marketing strategies.



Question-4 What are the reasons if you don’t sell BSNL SIM cards?

Interpretation- when I asked this question to the retailers they respond me in a straight way that none of

the distributer come here to supply the products we have to go to the distributer for the SIM cards this was the main reason of not selling the SIM cards. There were also some factor affecting the selling of the SIM cards, second reason was the commission provided by the BSNL, they were not satisfied with it. Some of the retailers had different thoughts about this as per them the activation process is very lengthy and critical therefore they do not entertain selling BSNL SIM cards.



Question-5 How many times the distributers visit to your shop to supply the telecom products?

16 14 12 BSNL

10

Airtel

8

Vodafone 6

Idea Reliance

4 2 0 How many times distributers distri buters visit the shops in a month

Interpretation- It was found that BSNL distributer are very lazy and not interested in roaming around

in the market this is one of the main factor why BSNL is no longer the number one telecom company in INDIA whereas others company’s distributer visit the market very often to fulfil the demand in the market and they try to get some information if there is any problem regarding the services and products. Retailers were very upset about the kind of o f behaviour BSNL persons do with them



Question-6 Do the officials of telecom companies visit the shop?

Interpreta Inter pretationtion- The qu ques esti tion on wa was s to kn know ow wh whet ethe herr th the e of offi fici cial als s of te tele leco com m companies visit the market for better understanding about the market scenario or not, it was found that only 10% retailers said that BSNL officers visit the market once in a year or two, rest of the 90% retailers pointed that no one come from BSNL office to visit the telecom market. Airtel held the first position in this area

Question-7



What kinds of promotional material are there at the shop?

Interpretation- all the oth other er tel teleco ecom m ser servic vices es pro provid vider er has dis distri tribut buted ed the their ir promotional materials at the shops; they themselves go there to install glow sign boards banner posters and any other promotional material whereas I did not find any kind of BSNL’s promotional material at any shop where I took the interview. If there is no promotional material at the shops how the customers will come to know that what are the current plans and what are the plan prices. So here BSNL is missing the very important P among the 4Ps of marketing which is affecting BSNL’s sales and revenue.



QUESTION-8 How much commission retailers get from the telecom companies?

Interpretation- BSNL gives good commission to the retailers but they are still not satisfied satisf ied because because they feel that BSNL is making making a huge profit therefore therefore it must increase the commission this will help retailers to promote BSNL services among the customers.



\ Chapter-7

FINDINGS



Finding in the research:•

The session was very powerful exercise to increase knowledge about recent environment, various schemes of the company. It helps to team spirit.

•

It was found in the research that there were no promotional material at any telecom shop related with wi th BS BSNL NL wh wher erea eass al alll th thee ot other her co comp mpan anie iess ha had d th thei eirr ba bann nner er,, po post ster erss an and d ma many ny mo more re promotional material in bulk at the shops.

•

BSNL distributer never visits to the market. No one can take action against them because of being a legal distributer even if they don’t perform p erform their duty.

•

BSNL is still in demand and has a strong customer base

•

BSNL has a weak marketing strategy.

After getting the questionnaire filled it was found that more than 80% of the respondents were dealing with BSNL’s products like SIM cards, recharge, internet connections etc. It shows that people are using and liking BSNL’s services. But it was also found that most the respondents were not in the favour of its network availability, roaming services and call rates. It shows that BSNL must take a step to improve it. On the basis of questionnaire it was found that BSNL customer care facility is so poor. So BSNL should increase its customer care facility to remove the grievances o f customers. People are not satisfied with its services so that for existence in the local market BSNL must provide better services than its competitors. The retailers also mentioned that there neither banner nor posters nor hoardin hoar dings gs of BSN BSNL L whe wherea reass on the other han hand d all the oth other er com compani panies es dis distri tribut butes es the these se kin kind d of promotional material ant install themselves at the shops so that customers can know the present plans and prices. BSNL is lacking in this part of promotional strategy. BSNL have to make sure that the product should be available at the shops as the other companies do



Chapter-8

LIMITATIONS



1. Limi Limited ted time availabl availablee for getting getting the questionnair questionnaires es filled filled from the respondent respondents. s. As a result of this it was not possible to get full information about the responden ts. 2. As summer summer traini training ng is going under under summer summer season season so som somee time people people are less intere intereste sted d in filling up questionnaires. 3. Non-c Non-coopera ooperative tive approa approach ch and rude behavi behavior or of the respo respondents ndents.. 4. If the responde respondents nts answer answer does not falls falls between between amongst amongst the options options given given then it will will turn up to to be a biased answer. 5. Conta Contacting cting potential potential respond respondents ents and if they they were not using using internet internet services services then then moving on to other respondents was very time consuming.



Chapter -9

RECOMMENDATION & SUGGESTIONS



RECOMMENDATION & SUGGESTIONS

•

After getting the questionnaire filled, it was found that although BSNL is providing a lot of services but due to its weak marketing strategy people are not aware about its services. So BSNL must take a step or adopt aggressive ag gressive promotional activity for selling out of these services.

•

People are not satisfied with its services so that for existence in the local market BSNL must provide better services than its competitors.

•

Though BSNL advertisement is rarely shown on television yet many people could recall it as per thee da th data ta of que quest stio ionna nnair ire. e. It sh show owss th that at th ther eree is on only ly ne need ed to gi give ve ad adve vert rtis isem ement ent onl only y to rememorize customers. Because BSNL is very strong brand name.

•

Company should launch its new services with improved quality.

•

Company should introduce promotional schemes like prepaid cellular service with low tariff rates and low call rates.

•

Try to change the percep perception tion of the people through Word Of Mouth that BSNL is good telecom service provider. Its progress is lower than other companies because TRAI has fully control over it.



SUGGESTION TO THE PRESENT SYSTEM OF MARKETING IN BSNL :BSNL products for sale, banner as well as publicity materials are collected by the Field units from the SSA head quart quarter. er. The market marketing ing term has no assessment assessment about the requirement requirement of the CSCs (common Service centre). Most of the CSCs are away from the SSA headquarters. This resulted considerable delay and wasting of man power. To over from this situation, the distribution work needs to be taken up by the marketing section team in the present scenario. This facilitates the team: 1) To know the requirement requirement of the concerned concerned CSC (Common Service Service system). system). The team can review the flow of the customer and their requirement and if necessary rearrangement of the nonmoving items from this CSC. 2) The team can collect collect the sale sale products products for which the the stock is made made over to the CSC. 3) The advertisem advertisement ent material material can be handed over to the CSC and should should also be monitored monitored about its display. 4) The marketi marketing ng team (Sales (Sales tea team) m) can als also o dis distr tribu ibute te the sto stock ck to the concerne concerned d DSC and the relation with DSCs can be established. Since the stock available at door steps of the DSCs, the DSC need not come to the premises of BSNL for stock. 5) The marketing marketing team (sales (sales team) team) can arrange the feed back to the concerned concerned in-charge in-charge about the customer pluse and their requirement.



The GM/DGM/DE (marketing) should monitor the sales and its accounting on weekly basis. The head of the SSA need not to call all the nodal officers/in-charges of the CSCs for meeting. Instead of this, field meetings with the concerned officials can be arranged on teleconference or on the spot.

NEED A NEW MARKETING STRATEGY IN MOBILE SEGMENT

BSN L has to take every effort to increase the market share. BSNL has to think seriously how to improve its service. At the same time each and an d every employee of BSNL has to think about the marketing strategy of BSNL. Its huge manpower can be plunged in to action. Whether it is improvement of quality of service or marketing, it cannot leave it to the management to take the initiative. It will have to start aggressively to ensure that the service is improved. It has also to pressurize the management to take necessary steps. The fact is that being a Govt. owned company, people generally have trust and good will in BSNL. Common people still believe that BSNL dose not involve in cheating and unfair business practices like private operator. Even the customers who had earlier switched over to private operators are ready to come back to BSNL, provided BSNL service is improving to their satisfaction. But BSNL must try to improve its GSM equipped capacity and also basic as well as Broadband connections



CONCLUSION :•

The main objective of the training is to get direct exposure to the execution of day to day functioning of the department within the organization. It helps to understand the importance of team work, organizational culture, team dynamics, result orientation, organizational pressures complexities in achieving the desired results.

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The work assigned by the company is to make questionnaire on the topic of “comparative study of BSNL with its competitors”. And get it filled with the respondents. This questionnaire was basically made to know that where BSNL is actually stand in the eyes of its customers.

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After getting the questionnaire filled, it was found that although BSNL is providing a lot of services but due to its weak marketing strategy people are not aware about its services so BSNL must take a step or adopt aggressive ag gressive promotional activity for selling out of these services.

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People are not satisfied with its services so that for existence in the local market BSNL must provide better services than its competitors.



BIBILEOGRAPHY Websites 1- www.google.com 2- www.bsnl.co.in 3- www.wikipedia.com 4- www.scribd.com 5- www.mymba.com

Books 1- Marketing Management (Philip ( Philip Kotler)

2- Re Rese searc arch h Me Metho thodo dolog logyy

Secondary sources 3-

BSNL fi files



Comparitive Analysis of BSNL(Product & Services) With Its Competitors

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