Bsnl Project free essay sample

A MARKETING MANAGEMENT PROJECT ON BHARAT SANCHAR NIGAM LIMITED (BSNL) SUBMITTED BY:- ARINDA MANDAL (ROLL NO. :-11202134) ABHINAV SRIVASTAVA (ROLL NO. :-11202135) PRITHI RAJ CHAKRABORTY (ROLL NO. :-11202136) MUNLINA SATPATHY (ROLL NO. :-11202137) Contents * Introduction * Market Position Of BSNL * Competitors Of BSNL * Objective Of BSNL * Marketing Strategy Of BSNL * Application Of Porter’s Generic Strategy * Porter’s Five Forces Related To BSNL * SWOT Analysis Of BSNL * BCG Matrix Of BSNL * Value Chain Delivery * Customer Satisfaction * Business Environment * Brand Equity Market Research Questionnaire Introduction Bharat Sanchar Nigam Ltd (BSNL), the corporate version of erstwhile DOT, came to existence on 1st October 2000. Ever since the formation of BSNL, the Indian telecommunications scenario has been transforming itself into a multi-player, multi-product market with varied market sizes and segments. Within the basic phone service the value chain has split into Basic services, long distance players, and international long distance players. It is a state-owned telecommunications company headquartered in New Delhi, India. assignment helper online BSNL is one of the largest Indian cellular service providers, with over 87. 1 million subscribers as of April 2011, and the largest land line telephone provider in India. However, in recent years the companys revenue and market share plunged into heavy losses due to intense competition in Indian telecommunications sector. BSNL is Indias oldest and largest communication service provider (CSP). It had a customer base of 90 million as of June 2008. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi, which are managed by Mahanagar Telephone Nigam Limited (MTNL). As of June 30, 2010, BSNL had a customer base of 27. 45 million wireline and 72. 69 million wireless subscribers. Present Market Position To understand and suggest – how strategic management can help BSNL – the first thing is to understand the Telecom industry environment and the stakeholders involved. Apart from having to cope with the change in structure and culture (government to corporate), BSNL has had to gear itself to meet competition in various segments – basic services, long distance (LD), and International Long Distance (ILD), and Internet Service Provision (ISP), and Mobile services. With the advent of competition the private operators have been impacting the strategic matrix by influencing regulatory bodies, adopting intelligent media strategies, and by targeting the creamy layer of customers. While, political control over the public sector remains a contentious strategic issue in the country; with the formation of a company, the internal strategy of the BSNL board will be of gaining considerable autonomy. Labour unions are powerful internal stakeholders, as are the middle managers/ other staff that have the primary responsibility for customer care. The following stakeholders diagram gives an insight about the changing telecom industry environment for BSNL. About BSNL Competitors * BHARTI:- Established in 1985, Bharti has been a pioneering force in the telecom sector  with many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch  National Long Distance Services in India. Bharti they have so far deployed around 23,000 km of optical fiber cables across the country, coupled with approximately 1,500 nodes, and presence in around200 locations. The group has a total customer base of 6. 45 million, of which 5. 86 million are mobile and 588,000 fixed line customers, as of January 31,2004. In mobile, Bharti ’s footprint extends across 15 circles. Bharti Tele-Ventures strategic objective is â€Å"to capitalize on the growth opportunities the company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services * RELIANCE INFOCOMM :- Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate. It is also an integrated telecom service provider with licenses for mobile, fixed, domestic long distance and international services. Reliance Infocomm offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. Reliance India Mobile, the first of  Infocomms initiatives was launched on December 28, 2002. This marked the beginning of Reliances vision of ushering in a digital revolution in India  by becoming a major catalyst in improving quality of life and changing the face of India. Reliance Infocomm plans to extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for Indias farmers, businesses, hospitals, government and public sector organizations. Until recently, Reliance was permitted to provide only â€Å"limited mobility† services through its basic services license. However, it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile services. It has rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year to become the country’s largest mobile operator. It now wants to increase its market share and has recently launched pre-paid services. Having captured the voice market, it intends to attack the broadband market. Objectives Of BSNL 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 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. Marketing Strategy Of BSNL Marketing strategy is a method of focusing an organization’s energies and resources on a course of action which can lead to increased sales and domination of a target market niche. A marketing strategy combines product development, promotion, distribution, pricing, CRM and other elements. Utilization Of 7 P’s On BSNL:- I. Products:- †¢ Voice †¢ Data †¢ Video †¢ VAS †¢ Call Management Services †¢ Other features:- – Coverage, Roaming, CUGs – Recharge options II. Price:- Capacity planning for Pre-paid †¢ 15 Sec pulse †¢ I/C free †¢ No roaming charges †¢ Tariff plans (225,325,525,140, Life time free.. †¢ Liberal Tie up with content providers (still many issues) †¢ Business Development: Special packages. III. Place:- †¢ CSC outlets (30% of stock) †¢ Business Development units †¢ STD PCO outlets †¢ Franchisees (70% of stock) â⠂¬ ¢ Marketing agents †¢ Automated process (ATMs, SMS requests) IV. Promotion:- †¢ Brand launch by MOC †¢ Service launch by PM †¢ Advertising in various media †¢ Handset tie ups †¢ Various promotional schemes:- – 1+1 – Full talk value – Loyalty bonus – Student power V. People:- †¢ Excusive Mobile Teams †¢ Dual role of SSA team †¢ Co-ordination issue †¢ Issue of ownership †¢ Excusive Mobile Teams †¢ Dual role of SSA team Co-ordination issue †¢ Issue of ownership VI. Process:- †¢ Acquisition †¢ Verification †¢ Billing †¢ Complaint handling †¢ Call centre †¢ Payment to franchisees †¢ Automation of process (eTop, disconnections, SMS activation, ATM use etc. VII. Physical Evidence:- †¢ Our visibility in market †¢ Market share †¢ TRAI QoS reports Application of Porter’s Generic Strategy * Overall cost leadership:- As there is huge competitio n from the private companies, BSNL must reduce its call rate. * Differentiation:- As BSNL is most trusted telecom brand it can emphasize on this advantage and can concentrate on product variation to satisfy the customer need. Focus:- BSNL must focus on the adding more value added services and issue more public issues to raise its funds. LOW COST HIGH COST BROAD NARROW Poter’s Five Forces Related To BSNL:- 1. Rivary Among Existing Compititors:- Competition in Indian Telecom Industry Major PlayersAs discussed above the major competitors of BSNL is as follows:- . †¢ Private Indian owned companies (Reliance Infocomm, Tata Teleservices . †¢ Foreign invested companies (Vodafone, Bharti Tele-Ventures, Idea Cellular, Spice Communications). 2. Bargaining Power Of Consumers:- Indian Telecom industry is one of the fastest growing telecom markets in the world. In telecom industry, service providers are the main drivers; whereas equipment manufacturers are witnessing growth and decline in successive quarters as sales is dependent on order undertaken by the companies. Airtel, Reliance, Tata and Sterlite are some of the companies that are expected to spur the growth in 2008, as compared to AMJ07. According to Cygnus estimates, telecom industry was expected to grow by 25% in 2008 as compared to AMJ07, in terms of sales. EBDITA and PAT are expected to grow by 32% and 34% respectively in 2008 as cost expenses are being control by major companies like Airtel and Reliance. The major booster is the wireless mobile subscriber base; crossing over 261m in March 2008. Other services like Internet subscriber base has also provided significant impetus with its subscriber base reaching over 11m in March 2008. The total subscriber base of Wireline services stood at 39. 42 million as on 31st March 2008. The incumbents BSNL and MTNL have 80. 05% and 9. 33% market share respectively in the subscriber base, while all the five private operators together have 10. 62% share. Wireline subscriber base has been declining in the last few years. Subscriber base for some of the companies like Bharti, Tata (Tele Communications), MTNL and Reliance increased marginally. On the other hand, BSNL, Shyam and Telelinks have lost marginal subscriber base in 3rd QUARTER OF 2008, as compared to the previous quarter. 3. Bargaining Power Of Suppliers:- As far as telecom industry is concerned, it is service based industry which is intangible, so in this case there are less suppliers or we can say the role of suppliers are almost negligible in the case of telecom industry. we are trying to analyze that minor role ) Mobile Hand Set Suppliers:- There can be many suppliers for handset, some of them are Nokia, Sony Ericsson, Motorola, Siemens etc. Many big telecom giants have their own handset manufacturing (back ward integration) like Reliance Classic, Tata Indicom or they have collaboration with some known companies like Reliance communication have tie ups with Samsung and LG for their CDMA services. b) Some other suppliers for this industry can be the Optical fibre suppliers, Aluminum suppliers(aluminum is required for the tower)but their bargaining power is limited. ) Other important parameters can be the software assistance where suppliers can have the edge some of the main software solution provider are TCS, Infosys, Wipro, Satyam etc. Again one thing is noticeable that big giants like Reliance and Tata have their own units for software solution and companies like Vodafone, Spice are taking services from above stated companies. so here software providers have bargaining power because suppose Vodfone can’t go to Reliance info for their software solution so here suppliers can have edge over the companies. 4. Threat To New Entrants:- The Indian telecom sector offers unprecedented opportunities for foreign companies in various areas, such as 3G, virtual private network, international long distance calls, value added services, etc. The market is witnessing MA activities that are leading to consolidations in the industry. This trend has assisted companies in expanding their reach in the Indian telecom market to offer better services to customers. The Indian telecom industry has always allured foreign investors. In fact, the cumulative FDI inflow, from August 1991 to March 2007, in the telecommunication sector amounted to US$ 3,892. 9 million. This makes telecommunication the third-largest sector to attract FDI in India in the post liberalization era. In India large numbers of players are emerging in the market on the national level from its state level existence such as:- †¢Aircel †¢Virgin †¢Spice †¢Idea †¢Unitech 5. Substitute To Product:- Telecom sectors offers a w ide range of services in India, such as wireline, CDMA mobile, GSM mobile, internet, broadband, carrier, MPLS-VPN, VSAT, VoIP, IN, etc. Internet telephone:- It is emerging as a best option in place of because it is cheaper and video as an added advantage. SWOT ANALYSIS * Strengths:- * Huge resources * Huge customer base * Most trusted telecom brand * Transparency in billing * Huge optical fiber network * Most experienced telecom service provider * Weakness:- * Poor marketing strategy * Bureaucratic organizational setup * Limited number of value added services * Procedural delay Opportunities:- * Tremendous market growing at 20 lacs customers per month * Low cost advantage * Diversification of business to various rural projects * Untouched international market Threats:- * Competition from private operators Keeping pace with fast technological changes * Decreasing revenues due to competitive pricing * Multinational eyeing Indian telecom market. BCG Matrix * Cash Cows:- The cash cows of BSNL are landline service and internet service because the customer base of landline is reducing slowly. * Star:- cellular service and intelligent network operations is the star unit for BSNL. Because these units generates cash but it is facing a heavy competition from its competitors as the market is growing. * Question Mark:- BSNL rural broadband is the question mark unit for BSNL because it needs resources to grow. It has a very small market share in India (only rural area) * Dog:- Satellite Communication is the dog unit for BSNL because a substantial investment is required for this unit. Serial Number| Internet Service Provider| Market Share (%)| 1| BSNL| 45. 2| 2| MTNL| 19| 3| SIFY| 8. 9| 4| Bharti Airtel| 6. 8| 5| Reliance| 6. 1| As we can see that use of internet in our country is on growing rate. As there are many tools which can be accessed through internet like video conferencing other important tool is talking through internet for eg. Google talk, rediff bol, yahoo messenger. Important thing is that internet is cheaper medium of communication and one can have many facilities if he/she is connected to the world through the internet. As we have seen government has several plans to increase the speed of internet so that one can exploit the resources which are available. QUESTION MARK Broadband- Rural | STAR Cellular service- Leased circuit- Intelligent network operations | DOGS Satellite communications | CASH COWS Landline service-Internet service| Value Chain Delivery A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order, and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of the independent activitys value. * The Market-Sensing Process:- All the activities in gathering market intelligence, disseminating it within the organization, and acting on the information is known as market sensing process. BSNL concentrates on the Middle –Class segments of the market. Under its motto â€Å"We Sell Confidence†, it is successful to gain the confidence of the customers. BSNL runs undertakes various types of survey programmes to find out what the consumers actually expect from the company. The New-Offering Realization Process:- All the activities in researching , developing and launching new high-quality offerings quickly and within project is known as the new-offering realization process. BSNL realizes the actual need of the market and according to that it serves various Value Added Services to its customers like SMS Packs, Internet Packs, etc. at vey optimum prices. The Customer Acquisition Process:- All the activities in building deeper understanding, relations and offerings to individual customers is known as the customer acquisition process. The tag line of BSNL â€Å"We Sell Confidence† is itself sufficient for accruing customers. The growing rate of BSNL customers is itself a proof that BSNL is very popular among peoples ranging f rom the youth to the old. * The Customer Relationship Management Process:- The firm is implementing a next-generation, Call Detail Records-based customer care and convergent billing system to improve its billing and customer care. BSNL will implement the CDR-based system across the country divided into four zones and four data centers. Announcing the deal, Kuldeep Goyal, chairman and managing director, BSNL, said the CDR project seeks to enhance customer service delivery across the organization, and as a result of it, we will not only be able to enhance customer care but reduce operational costs and increase revenue. * The Fulfillment Of Management Process:- All the activities in receiving and approaching orders, shipping the goods on time, and collecting payment is known as the fulfillment og management process. The figure below clearly defines the process of BSNL Customer Satisfaction Communication plays a vital role in human society by helping mankind to interact with others. It is an essential tool for the development of civilization. quot; Communication is the sum of all things one person does when he wants to create understanding in the mind of another. It is the bridge of the meaning. It involves systematic and continuous process of telling, listening and understanding quot. Which means common. It refers to the various means or media of transmitting information from one individual to another or one place to other, civilization started as men started communication. This feature differentiated him from his fellow animals. In olden days communication is one to one, announcements in the open yard by Royal messengers, fire signals, flags and the like. The following model depicts the communication process explaining person communicates his thoughts to another person with a view to his thoughts. In our contemporary social system, communication plays an important role in every part of our life especially in education, business, career, politics and the like communication helps in creating, building and developing relationship and business value through several media in communication such as to race interaction, Mails, Telephone, Mobile, Internet and the like. In the present day world, the information technologies have been successful in building superhighway for communication knowledge is supposed to be the power- generating force. Communication technologies are found contributing substantially to the development processes. In management, communication acts as a lever spring. The accomplishment of organizational goals is found possible through the vehicles of communication. This is due to the fact that communication encapsulates multidimensional information, such as emerging trends in the business environment, mounting intensity of competition, inventions and innovations is the process of technological sophistication, changes in the governmental regulations and much other information that may help a decision maker in making and innovating the decisions. Communication offers tremendous opportunities for generating and accelerating the rate of productivity. We consider communication as a means not an end, with the development of satellite communication in the Indian perspective, we find opening of new vistas of development. Computers, micro computers, super computers, internet and intra-net services, e-commerce, and telemarketing are to mention a few found very much instrumental in speeding up the process of development. In todays fast and crowded world,information processing plays a vitial role among human beings that contribute heavily to the succes of their different activitis. BSNL is the first state owned company in the telecom industry in india. it was enjoyed a monopoly till the 1991 economic reforms pave entry to many private and international plays into the srevice started telcom domain. BSNL, formed in october,2000 has been world'[s 7th largest telecommunications company providing comprehensive range of telecom service in India. The foundation of Telecom Network in Indian was laid by the British government in 19th century. The history of Bharat Sanchar Nigam Limited [BSNL] is linked with the beginning of Telecom in India. The Telecom service in India is a part of government of India. BSNL is the first state owned company in the telecom industry in India BSNL formed in October, 2000 has been worlds 7th largest telecommunication company. BSNL was given to Priority responds to the customer. BSNL providing comprehensive range of multiple Access Mobil [CDMA], Global system for Mobil [GSM], Internet, Brad band, carrier services, Intelligent network services ect. BSNL has to provide excellent services to attain major market share and keep their customer satisfaction in all aspects. Business Environment Micro Environment Of BSNL:- Micro environment of a business includes suppliers, distributors, customers and competition. * Suppliers: the supplier channel of BSNL is very large. The main products which are in demand are BSNL 3g data card,3G wireless data card. * Distributors: there is large and a huge channel of BSNL distributors all over India ,outside India as well. * Customers: The customer base of BSNL is very vast. The customer care service of BSNL is also very effective Several Steps have been taken at BSNL   to augment the quality of customer care to international standards. llowing toll free numbers are available for 24hours for the customer service. * Dataone Broadband 1800-424-1600 * PSTN Call Center 1500 (in select states) * Sancharnet Help Desk 1957 * CellOne all India Help 1800 180 1503 or 1503 * Macro Environment:- There are many factors in the macro-environment that will affect the decisions of the managers of any organization. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyze these factors managers can categorize them using the PEST model. PEST stands for political, economical, social, technological, environmental and legal factors. * Political:- BSNL has the biggest advantage in political environment as it belongs to the government sector. * Economic:- Economic sector of BSNL is very strong. Its a strength of BSNL. * Social:- BSNL is accepted all kinds of social groups. * Technology:- 3g service and asymmetric technology is used in BSNL which no other service provider uses. Brand Equity Brand equity is the marketing effects and outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. Fact of the well-known brand name is that, the company can sometimes charge premium prices from the consumer. BSNL has a huge popularity in the country. Truly said that it sells only confidence. Besides its transparent billing system its involvement in the new technological fields has surely help it to increase its brand image. BSNL is popular among every generation peoples ranging from young to old. And its has a huge net of networks starting from north to south and east to west. The brand equity of BSNL can be determined by the following attributes:- Market Research Questionnaire 1. Which mobile service provider do you use? 2. What are the value added services of BSNL? 3. Are you satisfied with the customer care services provided by BSNL? 4. Are you satisfied with the 3g service of BSNL? 5. What are the major competitors of BSNL in your opinion? 6. What are the calls per rate plan of BSNL? 7. What is the speed of broadband service of BSNL?