Consumer preference for Reliance Mobile

A
PROJECT REPORT ON

“Consumer preference for Reliance Mobile”

nehaagarwal6jan@gmail.com

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Table of contents

S.No. Contents Page No.
1 Objectives of the study 4
2 Reliance-An Overview 5
3 Research methodologies 10
4 Chi square test 11
5 Data collection and representation 13
6 Test statistics 19
7 Analysis and findings 28
8 Suggestions 30
9 Conclusion 32
10 Limitations 34
11 Questionnaire 35
12 References 38

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1. Objectives of the study

• To study the consumer preferences for reliance mobile.

• To know the percentage of males and females that are aware about
mobile service providers.

• To know mostly which segment of people are aware about mobile
service providers.

• To know the reason of using a particular mobile connection.

• To know how much advertisement affects people to buy mobile
connections.

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2. RELIANCE- ANIL DHIRUBHAI AMBANI GROUP

2.1 COMPANY OVERVIEW

Reliance – Anil Dhirubhai Ambani Group offers
communications, financial services, power, infrastructure, healthcare, and
entertainment services. It provides integrated telecommunication
services, which include mobile and fixed line telephony, broadband,
national and international long distance, voice, data, and video; and asset
management and mutual funds, life and general insurance, private equity
and proprietary investments, stock broking, and other activities in
financial services. The company also engages in the generation,
transmission, distribution, and trading of electricity; building and
operation of metro systems, buildings, roads, sea links, airports, and
power projects; film processing, production, exhibition, and digital
cinema; and health services. In addition, Reliance – Anil Dhirubhai
provides radio network, animation, music, sports, online games, movie
rental and download, social networking platform, mobile games, and
user-generated content services. The company serves customers in India,
the Middle East, Asia, Europe, the United States, and the Asia Pacific.
Reliance – Anil Dhirubhai Ambani Group is based in Navi Mumbai,
India.

2.2 INDIA’S LEADING INTEGRATED TELECOM COMPANY
Reliance communications is the flagship company of the Anil
Dhirubhai Ambani Group (ADAG) OF Companies. Listed on the

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National stock exchange and the Bombay Stock Exchange, it is India’s
leading integrated telecommunication company over 60 million
customers.

Business encompasses a complete range of telecom services
covering mobile and fixed line telephony. It includes broadband, national
and international long distance services along with an exhaustive range of
value-added services and applications. Their constant endeavour is to
achieve customer delight by enhancing the productivity of the enterprise
and individuals they serve.

Reliance Mobile (formerly Reliance India Mobile), launched
on 28 December2002, coinciding with the joyous occasion of the late
Dhirubhai Ambani’s 70th birthday, was among the initiatives of Reliance
Communications. It marked the auspicious beginning of Dhirubhai’s
dream of ushering in a digital revolution in India. Today, they can
proudly claim that we were instrumental in harnessing the true power of
information and communication, by bestowing it in the hands of the
common man at affordable rates.

They endeavour to further extend our efforts beyond the
traditional value chain by developing and deploying complete telecom
solutions for the entire spectrum of society.

2.3 ANIL DHIRUBHAI AMBANI GROUP MARKET SHARE

Ambani is the chairman of Reliance Capital, Reliance
Communications and Chairman & Managing Director, Reliance Energy,
and was formerly Vice Chairman and Managing Director of Reliance
Industries Limited. His personal stake in Reliance Communications is
66%. Reliance group is India's largest business house, founded by Anil's

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late father Dhirubhai Ambani (1932-2002).

The total investors' wealth in the four Anil Ambani Group
firms -- Reliance Communications (RCOM), Reliance Capital (RCL),
Reliance Energy (REL) and Reliance Natural Resources Ltd (RNRL) has
reached 1,42,384 crore rupees, while total promoter holding is estimated
at about Rs 87,000 crore. Anil's wealth comes mostly from his over 65
per cent stake in RCOM, which has a market cap of about Rs 1,03,000
crore. He also has over 50 per cent in RCL (market cap of Rs 24,000
crore), 35 per cent in REL (market cap of Rs 12,700 crore) and close to
54 per cent in RNRL, which has a market cap of about Rs 2,600 crore.His
net worth subsequently plunges by over 60% owing to poor stock market
condition in India led by ADAG stocks.

2.4 External links
• Reliance Airlines Venture
• Dhirubhai Ambani Institute of Information and Communication
Technology
• Forbes.com: Forbes World's Richest People
• Reliance ADAG
• Reliance India Call
• Reliance Communications
• Reliance Energy
• Reliance Capital
• Reliance World
• Reliance Life Insurance
• Reliance General Insurance
• Reliance Mutual Fund

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• Reliance Portfolio Management
• Reliance Natural Resources
• Reliance Technology Ventures Ltd
• Reliance Money
• Reliance Health
• Adlabs Films
• Adlabs Cinemas

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3. Research Methodologies

The data which we have collected is primary data with a
sample size of 200 through the questionnaire method from the students of
IMS Hostel ghaziabad .

Statistical tools applied
• Pie chart distribution
• Chi square test

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4. Chi square test
If we classify a population into several categories with respect
to two attributes, we can then use a chi-square test to determine whether
the two attributes are independent of each other. Managers also encounter
situations in which it is useful to test for the equality of more than two
population means. Many times managers need to know whether the
differences they observe among several sample proportions are
significant or only due to chance.

So it is a test of hypothesis in which we can state null
hypothesis and alternative hypothesis as follows:

The null hypothesis

H0=there is no association between two factors

And the alternative hypothesis

H1=there is association between two factors

The chi-square hypothesis test is also defined by the term correlation r.

If r=0, there is no correlation or there is no association between the two
factors.

If r not equals to zero then there is some correlation and as well as
association between two factors.

Degrees of freedom in a chi-square test of independence is given as:

Dof = n-1

Where, n is the number of rows taken into consideration.

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And the calculated value of chi-square is given by

Chi-square calculated = Σ(O-E)2 / E

Where,

O is the observed frequency and E be the expected frequency of the
sample.

If the calculated value of chi-square is greater than the
tabulated value of chi-square then reject the null hypothesis H0 and
accept the alternative hypothesis H1.

If the calculated value of chi-square is smaller than the
tabulated value of chi-square then accept the null hypothesis H0 and
reject the alternative hypothesis H1.

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5. DATA COLLECTION AND REPRESENTATION

5.1 Gender of the consumer

Frequency Percentage
Male 152 76
Female 48 24
Total 200 100

Frequency of the consumers according to the gender

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5.2 Number of people having mobile phone

Yes 186 93
No 14 7
total 200 100

Frequency of consumers with or without mobile phone

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5.3 Connections people have

Airtel 60 30
Bsnl 16 8
Idea 22 11
Reliance 47 24
Vodafone 45 22
Tata indicom 8 4
Any Other 2 1
Total 200 100

Percentage of connections people have

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5.4 Reason to purchase any mobile connection

Brand Name 40 20
Network 40 25
Brand Ambassader 51 8
After Sales Services 16 10
Customer care services 20 16
Call Rates 31 20
Any Other 22 1
Total 200 100

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5.5 People have seen the advertisement of mobile connection

Yes 195 97.5
No 5 2.5
Total 200 100

Percentage of people who have see or not seen the advertisement

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5.6 Advertisement people remember the most

Airtel 22 11
Bsnl 16 8
Idea 41 21
Reliance 31 16
Vodafone 50 24
Tata Indicom 40 20
Total 200 100

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5.7 Reason to remember the advertisement

frequency percentage
Creativity 48 24
brand ambassador 49 24
idea of delivering message 22 11
frequency of advertisement 51 26
Logical reason 30 15
Total 200 100

Percentage showing reason to remember the advertisement

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6. Test statistics (Chi square test)

6.1. Different types of mobile connections people have

Observed Expected O-E (O-E)2 (O-E)2/E
Frequency frequency
O E
Airtel 60 28.57 31.43 987.84 34.57
BSNL 16 28.57 -12.57 158.00 5.53
Idea 22 28.57 -6.57 43.16 1.51
Reliance 47 28.57 18.43 339.66 11.88
Vodafone 45 28.57 16.43 269.94 9.45
Tata 8 28.57 -20.57 423.12 14.80
indicom
Others 2 28.57 -26.57 705.96 24.71
Total 200 102.45

Our test hypothesis is

H0 = There is no association between the preference of consumers
regarding the mobile connections and the number of consumers.

H1 = There is association between the preference of consumers
regarding the mobile connections and number of consumers.

The calculated value of chi-square = 102.45

The degree of freedom is (n-1) that is 6 since the value of n is 7.

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The tabulated value of chi-square with level if significance 0.05 and
degree of freedom 6 is 12.59

Here,

Chi-square calculated > Chi square tabulated

Hence, reject the null hypothesis H0 and accept alternative hypothesis
H1.

Decision: There is association between the preference of consumers
regarding the mobile connections and number of consumers. And
consumer preferences for mobile connections are different.

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6.2. Advertisement people remember the most

frequency frequency
N E
Airtel 22 33.33 -11.33 128.36 3.85
BSNL 16 33.33 -17.33 300.32 9.01
Idea 41 33.33 7.67 58.82 1.76
Reliance 31 33.33 -2.33 5.42 0.16
Vodafone 50 33.33 16.67 277.88 8.33
Tata 40 33.33 6.67 44.48 1.33
Indicom
Total 200 24.44


H0 = There is no association between the advertisement of the mobile
connections people remember and the number of consumers.

H1 = There is association between the advertisement of the mobile
connections people remember and number of consumers.


The degree of freedom is (n-1) that is 5 since the value of n is 6 .


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Here,


H1.

Decision: There is association between the advertisement of the mobile
connections people remember and number of consumers. And consumer
remember different different advertisement.

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6.3 Reason to purchase a mobile connection

frequency frequency
N E
Brand 40 28.57 11.43 130.64 4.57
Price 31 28.57 2.43 5.90 0.206
Network 40 28.57 11.43 130.64 4.57
Brand 51 28.57 22.43 503.10 17.61
ambassador
After sales 16 28.57 -12.57 158.00 5.53
service
Customer 20 28.57 -8.57 73.44 2.57
care
service
Other 2 28.57 -26.57 705.97 24.71
total 200 59.77


H0 = There is no association between the reasons to purchase the mobile
connections and the number of consumers.

H1 = There is association between the reasons to purchase the mobile
connections the mobile connections and number of consumers.



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Here,


H1.

Decision: There is association between the reasons to purchase the
mobile connections the mobile connections and number of consumers. It
means consumers prefer any mobile connections on the basis of certain
factors.

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6.4. Reason to remember the advertisement

frequency frequency
N E
Creativity 48 40 8 64 1.6
Brand 49 40 9 81 2.02
ambassado
r
Idea of 22 40 -18 324 8.1
message
Frequency 51 40 11 121 3.02
of ads.
Logical 30 40 -10 100 2.5
reason
Total 200 17.24


H0 = There is no association between the reasons to remember the
advertisement and the number of consumers.

H1 = There is association between the reasons to remember the
advertisement the mobile connections and number of consumers.




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Here,


H1.

Decision: There is association between the reasons to remember the
advertisement the mobile connections and number of consumers. It
means consumers remember the advertisement of any mobile connections
because of factors described.

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7. Analysis and Findings

i. There are 76% male and 24% female mobile consumers.

ii. 93% of the population has the mobile phone and 7% do not have.

iii. Out of total population 30% uses airtel, 4% tata indicom, 22%
Vodafone, 24% reliance, 11% idea, 8% bsnl and 1% others.

iv. Out of the total population 20% have the reason to buy different
connections as brand name, 25% network, 8% brand ambassador,
10% after sales service, 16% customer care services, 20% call rates
and 1% have other reasons.

v. 97% of the population has seen the advertisement and 3% not
before buying the mobile connections.

vi. Out of the total population 11% remembers the advertisement of
airtel, 8% bsnl, 21% idea, 16% reliance, 24% Vodafone and 20%
tata indicom.

vii.24% of the population have creativity as the reason to remember
the advertisement, 24% brand ambassador, 11% idea of delivering
the message, 26% frequency of advertisements and 15% have any
other logical reason.

viii.There is association between the preference of consumers
regarding the mobile connections and number of consumers. And
consumer preferences for mobile connections are different.

ix. There is association between the advertisement of the mobile
connections people remember and number of consumers. And
consumer remember different different advertisement.

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x. There is association between the reasons to purchase the mobile
connections the mobile connections and number of consumers. It
means consumers prefer any mobile connections on the basis of
certain factors.

xi. There is association between the reasons to remember the
advertisement the mobile connections and number of consumers. It
means consumers remember the advertisement of any mobile
connections because of factors described.

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8. Suggestions

• Perform a detail demand survey at regular interval to know about
needs and requirement of the customer.

• The company should make hindrance free arrangement for its
customer/retailers to make any feedback or suggestions as and
when they feel.

• Company should pay a special attention towards its customers
through a good customized communication system network for
individuals and more specifically to its customers through their
preferred communication channel.

• The company should focus to bring some latest and most advanced
technology and variety of schemes rather then bring second and
repeat same old one. It is always better to be first than being better.

• The company must be aware of and keep at least the latest
knowledge of its primary competitors in market and try to market
perfect anticipated efforts to meet the same.

• The company should also use time to time some more and new
attractive system of word of mouth advertisement to keep alive the
general awareness in the whole market as a whole.

• The company should be always in a position to receive continuous
feedback and suggestion from its customers/consumers as well as
from the market and try to solve it without any delay to establish
its own good credibility.

• The company must set-up a good marketing intelligence system
network to attack any important initiative to catch the fast growing

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trends and development.

• The visibility of any product plays an important role in marketing
the customer, aware about it and is vital for the growth and
development of any product.

• For their advertisement they can also introduce a brand
ambassador because most of the consumers remember
advertisement because of their brand ambassador.

• As far ac RIM is concerned; its doing a good job but, it has to
remain aware of the efforts being made by its competitors like
Vodafone and airtel as they are also investing heavily on
improving their visibility.

• As far as Rim is concerned it’s doing a good job but, it has to
remain aware of the efforts being made by it’s competitors like
Vodafone and airtel ; as they are also investing heavily on
improving their visibility.

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9. Conclusion

During the course of the project I realized that the customer
willingly answered the closed end questions. From the analysis of the
data collected I have reached the following conclusions:

• RIM is most popular amongst its users mainly because of its low
tariff plans, varied schemes, its unique services like R-World, and
low cost of possession. Thus it should focus on keeping the cost
low so that it can capture the major part of the market. But most of
the consumers prefer Airtel as their 1st preference, then Reliance.

• We come to the conclusion that visibility affects the sales of
project in a very special way and in terms of the advertisements
reliance is lacking behind, it is at number 4 mostly consumers
remember the advertisement because of the frequency of add and
brand advertisement.

• The secret behind being the market leader is being innovative, and
to be the first to introduce new ideas services and latest technology.

• After acquiring a new customer, there is lot of importance of its
retention also. This can be done only by providing proper services

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and good customer care in which RIM is lacking somewhere.

• In today’s scenario, customer is the king because he has got
various choices around him. If you are not capable of providing
him the desired result he will definetly switch over to the other
provider. Therefore to survive in the cutthroat competition, you
need to be the best. Customer is no more loyal in today’s scenario,
so you need to be always on your toes.

• We feel that there is cut throat competition between RIM,
Vodafone, Idea, BSNL, Airtel and TATA indicom in terms of
customer acquisition, so to be on top of mind of the customers they
need to do something outstanding every time.

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10. Limitations

• The responses may vary, as some people did not want to come up
with real answers.

• The people were busy in their own work so they might not have
given actual responses.

• Limitations of time.

• The survey is conducted only in IMS hostel that is not convenient.

• Small sample size.

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11. Questionnaire

1. Name………………………………………………

2. Gender Male  Female 

3. Do you have mobile phone?

Yes  No 

4. Which connection do you have?

Airtel 

BSNL 

Idea 

Reliance 

Vodafone 

Tata Indicom 

Others 

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5.About the mobile connection what do you like most?

Brand name 

Price 

Network 

Brand ambassador 

After sales service 

Customer care service 

Any other(please specify) 

6. Have you seen any advertisement of mobile connections?

Yes  No 

7. Advertisement of which mobile connection do you remember the
most?

Airtel 

BSNL 

Idea 

Reliance 

Vodafone 

Tata Indicom 

Other 

8. What attracted you most in the advertisement?

Creativity 

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Brand ambassador 

Idea of delivering the message 

Frequency of advertisement 

Any logical reason 

9. Any suggestions

……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
………………………

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12. References

Richard I. Levin, David S. Rubin, “Statistics for management”, Pearson
education, 7th edition.

www.reliance.com

37

www.reliancecommunocation.com

www.reliancemobile.com

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Consumer preference for Reliance Mobile

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