A RESEARCH REPORT ON “CUSTOMER BEHAVIOR FOR PREPAID & POSTPAID CONNECTION OF B.S.N.L. (BHARAT SANCHAR NIGAM LIMITED)" UNDER THE GUIDENCE UNDER THE GUIDENCE Ms Richa Vats SUBMITTED TO SUBMITTED BY DR. P.K. AGRAWAL DIRECTOR IIMT PROFESSIONAL COLLEGE RAVI SHUKLA PGDM 2 nd SEM Roll No. MO9034 1
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A
RESEARCH REPORT
ON
“CUSTOMER BEHAVIOR FOR PREPAID & POSTPAID CONNECTION OF
B.S.N.L. (BHARAT SANCHAR NIGAM LIMITED)"
UNDER THE GUIDENCE UNDER THE GUIDENCE
Ms Richa Vats
SUBMITTED TO SUBMITTED BY
DR. P.K. AGRAWALDIRECTOR
IIMT PROFESSIONAL COLLEGE
RAVI SHUKLAPGDM 2nd SEMRoll No. MO9034
IIMT PROFESSIONAL COLLEGE MEERUT
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DECLARATION
This is declare that I am student of Post Graduate Diploma In Management in IIMT
Professional College, Meerut, U.P. have given original data information to best of my
knowledge in the project report entitled “CUSTOMER BEHAVIOR FOR
PREPAID & POSTPAID CONNECTION OF B.S.N.L.(BHARAT
SANCHAR NIGAM LIMITED)"
At BSNL Pratapgarh & that no part of this information has been used for any assignment but
for partial fulfillment of the requirements towards the completion of the said course.
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EXECUTIVE SUMMARY
Spending a period of three weeks with the project “CUSTOMER BEHAVIOR FOR
PREPAID & POSTPAID CONNECTION BSNL under Pratapgarh (U.P.) sub-division” was
really a very interesting time for me . The way I received the views of the people in different
areas of Pratapgarh (U.P.) division made me to realize that practical experience is much
different from theoretical knowledge.
I was in direct selling and, I realized that it is very difficult to understand the behavior of
customers. I am saying this because even though I was associated with a brand, sometimes it
was difficult to convince the custom BSNL has a Quality management system which is
demonstrated through its ability to consistently provide product and services that meets
customer and applicable regulatory requirements. It aims to enhance customer satisfaction
through its effective services
B.S.N.L was born free, a force unleashed into the market with a relentless and unwavering
determination to succeed. A spirit charged with energy and creativity and a team driven “to
seize the day” with an ambition to become the most globally admired telecom service. B.SNL
after just few years, has risen to the pinnacle of achievement.
As India's leading telecommunications company serving over 33 million customers the brand
has played the role as a major catalyst in India's reforms, contributing to its economic
resurgence.
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Today it touch peoples lives with its Mobile services to connect India's leading 1000+
corporate , empower them through Broadband services and connect Indians living in USA
with the call home service.
The strong product line from BSNL in Corporate Connections, customer friendly service and
national distribution strength. Have helped in making BSNL the most preferred brand of
mobile service provider in corporate world.
The telecom sector is witnessing a tough competition, with every major players (Reliance,
Hutch in corporate) having a range of products, with the entry of Vodafone, it will become
more tough.
Despite of various difficulties and limitations faced during my research report project I tried
myself to gain as much experience of marketing because Marketing is a very crucial activity
in every business organization. Every product produced within an industry has to be marketed
other wise it will remain as unsold stock, which will be of no value.
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ACKNOWLEDGEMENT
This project has not been prepared by me exclusively but, several personalities have
contributed toward this. To all those ideas have been helpful in preparing this project
report. I express my sincere gratitude. I am deeply indebted to Mr. Praveen Kumar
Singh who acted as a mentor and remains the constant source of inspiration and motivation
in completing this project. I would also like to thank my director sir Dr. P.K. Agrawal,
whose reviews and comments have helped us to improve this project.
I also thanks to T.D.M. Mr. G.L. Gupta for his valuable information &
supports .I admit my special thanks for his help in completing this project.
Least but not the last, I admit thanks to some of my friends, who has been a great
source of guidance and encouragement. I am indebted to them for their painstaking efforts in
helping us while preparing this project report.
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PREFACE
Practical knowledge is an important suffix to theoretical knowledge. One cannot merely
depend upon the theoretical knowledge. Classroom lectures make the fundamental concept of
Management clear. They also facilitate the learning of practical things. However, classroom
lectures must be correlated with the practical training situations. It is in the sense that practical
training in a company has a significant role to play in the subject of business management.
Market Research is indeed an ancient art; it has been practiced in one form of the other since
the day of Adam and Eve. Its emergence is of relatively recent origin for success of any
business and with in this relatively short period, it has joined a carry great deal of importance.
Management in India is heading towards a better profession as compared to other professions.
The demand for professional managers is increasing day by day. To achieve profession
competence, manager ought to be fully occupied with theory and practical exposure of
management. A comprehensive understanding of the principle will increases their decision
making ability and sharpens their tools for this purpose.
Marketing management is a powerful tool for achieving organizational goals and gaining
competitive advantage. Research report project goal is to help students become effective
managers in today’s competitive, global environment. Emphasis is given on discovering the
challenge of both managing and understanding the market and how the marketing strategy fits
in the organization “Marketing management is creating revolution in marketing of products
and services by the organization throughout the world.
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INTRODUCTION
I, RAVI SHUKLA feel honored that I have completed my Research report Project. My
project title in research report was “CUSTOMER BEHAVIOR FOR PREPAID &
POSTPAID CONNECTION OF B.S.N.L.”
It was challenging for me because this was just first ever experience of me of working in a
company. So, at the initial period I was a little bit tensed. It is a great thing for me that I have
completed the project successfully. In this regard I went to maintaining one name without
whose help my project would be incomplete task. Mr. PRAVEEN SINGH, my guide during
my project time and who helped me a lot during the preparation of my project
In accomplishing the goals of any organization the manager is not working alone. He is
working as a member of a team, the other member of his team being his staff. As manager of
this team he is responsible for his efficiency and effectiveness. Such management of staff
invokes creating condition and motivation for staff to work effectively.
This project focuses on customer’s motivation and the measurement for performance output.
To comprehend their themes it is necessary to study the underline behavioral concepts as well
as the physical processes and method used in motivating and appraising customers.
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TABLE OF CONTENTS
S.No CONTENTS Page No.
1 PROJECT OBJECTIVE 9
2 RESEARCH METHODOLOGY 10
3 DATA ANALYSIS & INTERPRETATION 11-184 COMPANY PROFILE 19-265 ORGATIONAL CHART 276 HISTORY 28-29
7 VISSION, MISSION & OBJECTIVES 308 BRAND NAMES OF B.S.N.L. 319 B.S.N.L. UNITS IN INDIA. 32
10 MARKETING STRATEGIES OF B.S.N.L 33-3811 CAPITAL OUTLEY 3912 COMPETITIORS 40-4213 MARKETING OF MOBILE PHONES 43
14 AVAILBILITY OF CONNECTIONS & RECHARGE CARDS 44-46
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.
2. 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 is the establishment, development, maintenance and optimization of long-term
mutually valuable relationships between consumers and organization. Successful Marketing
focuses on understanding the needs and desires of the customers and is achieved by placing
these needs at the heart of business by integrating them with the organization strategy, people,
technology and business processes. At its most basic, Marketing involves customers,
organizations and relationships and the combination creates the need for the management.
In simple words it implies a buyer, a seller, bonded by the mutual need, satisfying offer and a
medium/process to exchange the offer.
3. Marketing Process. We often talk of marketing & Sales and often use it interchangeably without understanding
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: -
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Discovering what product, service or idea customers want.
Producing a product with the appropriate features and Quality.
Pricing the product correctly.
Promoting the product; spreading the word about why customers should buy it.
4. Contrasting the Sales Concept with the Marketing Concept:-
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.
The 7Ps for service marketing (Product, price, place, promotion, physical evidence, people &
process) are the means to attain, nurture, & retain the customers and not the end.
5. Mission & Vision.
Here is a test to find whetherYour mission on earth is finished:
If you are alive, it isn’t. Richard Bach.
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’. Firstly we need to understand the parameter for being the largest. Is it
revenue, ARPU, profit, 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
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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 Q.uite
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 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?”
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. Does it imply poor brand equity? Brand Equity can be built with good
equity of 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 further cuts? Ultimately it is the
Quality, customer care, and timely availability apart from price, which will matter.
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.
7. Social Responsibility .
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B.S.N.L. the most trusted telecom brand in year 2003 & 2004. We have been given
Golden Peacock award for Best Corporate Social responsibility. How can we leverage these
distinctions? These achievements need to be highlighted through public relation exercise like
press meet. This will help us in building our marketing image. In sales and distribution front
though we have over one-lakh retailers, 1000 franchisees, 3300 CSCs, 36000 exchanges why
are we not visible like others? Why can’t we utilize all possible space? Can’t we leverage our
franchisee and STD-PCO strengths? Can we make these outlets as our core strength? Why our
recharge coupons, India Telephone Cards are in shortage when there is no capacity
constraint? Does it imply that our planning for printing, inventory management, logistics, and
supply chain and of course franchisee management is inefficient? Do we have targets for
these just like DELs & Cell One? Why can’t we leverage this huge network for better
customer care and improve collection efficiency? We must realize that with waiver of security
deposits, no OYT schemes, no advance rentals, adjustment of landline security for Cell One,
we don’t get fixed deposits to meet our funds 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?
8. Business Development.
Business development units have been given the task to develop and nurture long-term
relations with corporate houses. Many MoUs have been signed. Bulk bills are being issued.
One-point payments are being realized for multiple service locations. Key Account Manager
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concept has been introduced. All this requires change of mindset in addition to the skills of
marketing & sales. Do we have skilled manpower? Is our organization setup apt for better
results? The staff expense to revenue ratio could be a good indicator.
No doubt our revenues are up. Profit has increased. But consider the marketing budget we
have in comparison to others. Even with this little budget many circles are unable to utilize it.
We need to probe ourselves. Corporate office has permitted delegation of up to 70% of Circle
budget to SSAs. Does it mean that our budget planning is wrong? How should we allocate
marketing budget and which parameter to weigh?
•Per DEL/Mobile
•Acquisition cost
•Life time value
•Competitor spend
•Growth targets
9. Life Time Value
You can’t give people pride, but you can provide the kind of understanding that makes people
look to their inner strength and find their own sense of pride.
- Charleszetta Waddles.
It is high time we learn fast, groom ourselves, improve our mindset and act fast. Business
perspective is equally important as excellence in Telecom operations, maintenance, and
installations & planning. Our core competence should be telecom business acumen and not
just traditional expertise developed over the
10. Summary
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Vision is set in the Boardroom but realized in the battlefield. Each and every customers has
to continuously lead this battle to be victorious. The corporate office is always willing to
provide all resources. Together we can realize our vision.
CAPITAL OUTLET OF BSNL
Cumulative Capital Outlay
BSNL had Gross fixed assets of over Rs 1,11,692 crores (US $ 25.12 Billion) as on 31-
03-2006.
CAPITAL INVESTMENT
Annual Capital Investment in the network has increased from Rs. 785 crores (US$ 0.18 billion) in 1986-87 to over Rs. 6838 crores ( US $ 1.53 billion) in 2005-06. This investment has been financed mainly by the internal accruals.
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COMPETITORS
Type Public, Listed on BSEFounded 1985HeadQ.uarters New Delhi, India
Key people Sunil Mittal
Industry Telecom
ProductsMobile and Fixed-Line Telecommunication operator