SHRI RAMSWAROOP MEMORIAL UNIVERSITY

LUCKNOW- DEVA ROAD, UTTAR PRADESH

SUMMER TRAINING REPORT

ON
"BSNL SANCHAR SOFT FOR UP PORTAL "
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION
TO
SHRI RAMSWAROOP MEMORIAL UNIVERSITY
2016-17
Under the Guidance of:

Submitted By:

Ms. Jyoti Dewan

Shivam Yadav

(Assistant Professor)

Roll No- 201510702010026

Department of Management & Commerce

SRMU, Lucknow

CERTIFICATE OF ORIGINALITY
I_____________________________________ Roll No __________________of, a full time
bonafide student of first year of Master of Business Administration (MBA)/ Bachelor of
Commerce (H)/ Bachelor of Business Administration (H) Programme (Year) of Shri
Ramswaroop Memorial University. I hereby certify that for this project work carried out by me at
_________________________________________________ the

report

submitted

in partial

fulfillment of the requirements of the programme is an original work of mine carried out under
the

guidance

of

the

industry

mentor

___________________________________________________________________ and faculty

mentor _______________________________________________________ and is not based or
reproduced from any existing work of any other person or on any earlier work undertaken at any
other time or for any other purpose, and has not been submitted anywhere else at any time to the
best of my knowledge.

(Student's Signature)
Date:

DEPARTMENT OF MANAGEMENT & COMMERCE

SRMU

This is to certify that the project entitled

BSNL SANCHAR SOFT FOR UP

PORTAL submitted by Shivam Yadav [Univ. Roll No. .................................... and in

the partial fulfillment of the requirement for the award of the DEGREE OF MASTER OF
BUSINESS ADMINISTRATION/ BACHELOR OF COMMERCE (H)/ BACHELOR OF
BUSINESS

ADMINISTRATION

(H)

of

SHRI

RAMSWAROOP

MEMORIAL

UNIVERSITY to the best of my knowledge it is a record of students own work carried under
our supervision and guidance. The project report embodies result of original work and the study
carried out by the student and the contents do not form the basis for the award of any other
degree to the candidate or to anybody else.

Dr. Abhishek Kulshreshtha

Assistant Professor

Director
(Management, Commerce & Economic)

DEPARTMENT OF MANAGEMENT & COMMERCE

SRMU

DECLARATION

I hereby declare that the project entitled BSNL Sanchar soft for UP
Portalsubmitted by me in the partial fulfillment of the requirements for the award of the
degree of Master of Business Administration of Shri Ram Swaroop Memorial University, is a
record

of

my

own

work

carried

under

the

supervision

and

guidance

of

..
To the best of my knowledge this project has not been submitted to SHRI RAMSWAROOP
MEMORIAL UNIVERSITY or any other University or Institute for the award of any degree.

Name- Shivam Yadav

University Roll. No- 201510702010026

Acknowledgement
I would like to thank for providing me the opportunity to add a new dimension in my
knowledge by getting training in this esteemed organization.
It gives me great pleasure to express my regards and profound gratitude to my Mentor
Ms. Jyoti Dewan for his expert guidance throughout my training. I am highly indebted for his
painstaking attention and giving me his valuable time towards my projects and suggestions
which helped shape my project to perfection.
The acknowledgement will not be complete without a vote of thanks to the entire team of
CENTRAL QUALITY for their help and support at all times. There are numerous other people
whom I may not be able to acknowledge here but their contribution is equally important in the
success of my project.
Finally I want to thank all my friends with whom I had developed a special bond for their
helping attitude and co-operation during the course of this project.
{Shivam Yadav}

CONTENTS
CHAPTER-I

INTRODUCTION OF THE STUDY

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

METHODOLOGY OF STUDY

LIMITATIONS OF THE STUDY

CHAPTER-II

INDUSTRY PROFILE

CHAPTER-IH

COMPANY PROFILE

CHAPTER-IV

THEORETICAL FRAME WORK

CHAPTER-V

ANALYSIS & INTERPRETATION

CHAPTER-VI

FINDINGS

SUGGESTIONS

BIBLIOGRAPHY
QUESTIONNAIRE

INTRODUCTION
Customer relationship management (CRM) , is a number of strategies and technologies
that are used to build stronger relationships between companies and their customers. A company
will store information that is related to their customers, and they will spend time analyzing it so
that it can be used for this purpose.
Some of the methods connected with CRM are automated, and the purpose of this is to
create marketing strategies which are targeted towards specific customers. The strategies used
will be dependent on the information that is contained within the system. Customer relationship
management is commonly used by corporations, and they will focus on maintaining a strong
relationship with their clients.
There are a number of reasons why CRM has become so important in the last 10 years.
The competition in the global market has become highly competitive, and it has become easier
for customers to switch companies if they are not happy with the service they receive. One of the
primary goals of CRM is to maintain clients. When it is used effectively, a company will be able
to build a relationship with their customers that can last a lifetime. Customer relationship
management tools will generally come in the form of software. Each software program may vary
in the way it approaches CRM. It is important to realize that CRM is more than just a
technology.
Customer relationship management could be better defined as being a methodology, an approach
that a company will use to achieve their goals. It should be directly connected to the philosophy
of the company. It must guide all of its policies, and it must be an important part of customer
service and marketing. If this is-"not done, the CRM system will become a failure. There are a
number of things the ideal CRM system should have. It should allow the company to find the
factors that interest their customers the most. A company must realize that it is impossible for
them to succeed if they do not cater to the desires and needs of their customers. Customer
relationship management is a powerful system that will allow them to do this.
It is also important for the CRM system to foster a philosophy that is oriented towards the
customers. While this may sound like common sense, there are a sizeable number of companies
that have failed to do it, and their businesses suffered as a result. With CRM, the customer is
always right, and they are the most important factor in the success of the company. It is also
important for the company to use measures that are dependent on their customers. This will
greatly tip the odds of success in their favor. While CRM should not be viewed as a technology,
it is important to realize that there are end to end processes that must be created so that customers
can be properly served. In many cases, these processes will use computers and software.
Customer support is directly connected to CRM. If a company fails to provide quality
customer support, they have also failed with their CRM system. When a customer makes
complaints, they must be handled quickly and efficiently. The company should also seek to make
sure those mistakes are not repeated. When sales are made, they should be tracked so that the
company can analyze them from various aspects. It is also important to understand the
architecture of Customer relationship management. The architecture of CRM can be broken
down into three
7

categories, and these are collaborative, operational, and analytical. The collaborative aspect of
CRM deals with communication between companies and their clients.
The telecommunications market, in the last few years, has seen incredible Technological
advancement, which has fueled massive consumer adoption and brutal competition driven by
commoditization. To drive profits in this business. You must increase the average lifetime value
per customer and minimize the service cost even as service choices increase. Common to all of
our customers in the telecom sector is an abiding belief in delivering the best service to
customers by investing in technology that empowers consumers and service agents to have
intelligent, productive conversations. In a marketplace where consumers are increasingly aware
of their choices, consistent service quality is the foundation of a durable brand.
TELECOMMUNICATION SECTOR
The sector that includes the telecommunications service providers, network operators,
regulators, manufacturers, subscribers, and users.
The telecom sector has seen much change during the past two decades. At first, it was
the opining up of the equipment manufacturing sector, followed by the corporatisation of the
government owned entities, Videsh Sanchar Nigam Limited (VSNL) and Mahan agar Telephone
Nigam Limited (MTNL). Subsequently, the sector was opened for private participation in
basic other value added services. The most recent liberalization moves have been the
corporatization of the Department of Telecom into Bharat Sanchar Nigam Limited
(BSNL) and the privatization of VSNL.

SANCHAR
Bharat Sanchar Nigam Limited (abbreviated BSNL) is an Indian state-owned
telecommunications company headquartered in New Delhi. It was incorporated on 15 September
2000 and took over the business of providing of telecom services and network management from
the erstwhile Central Government Departments of Telecom Services (DTS) and Telecom
Operations (DTO), with effect from 1 October 2000 on a going concern basis. It is the largest
provider of fixed telephony and broadband services with more than 60% market share and Fifth
largest mobile telephony provider in India. However, in recent years the company's revenues and
market share have plummeted into heavy losses due to intense competition in the Indian
telecommunications sector. BSNL is India's oldest communication service provider and had a
customer base of 93.29 million as of June 2015. It has footprints throughout India except for
Mumbai and New Delhi, which are managed by Mahanagar Telephone Nigam (MTNL).

Services
Bsnl Mobile is major provider of GSM cellular mobile services under the brand name Cellone.
BSNL provides complete telecom services solution to enterprise customers including MPLS, P2P
and Internet leased lines. It provides fixedline services and landline using CDMA technology and
its extensive optical fiber network. BSNL provides Internet access services through dial-up
connection as prepaid, NetOne as Postpaid and DataOne as BSNL Broadband.
BSNL offers value-added services, such as Free Phone Service (FPH), India Telephone Card
(Prepaid card), Account Card Calling (ACC), Virtual Private Network (VPN), Tele-voting,
Premium Rate Service (PRM), Universal Access Number (UAN).[7] BSNL also offers the IPTV
which enables customers to watch television through internet and Voice and Video Over Internet
Protocol (VVoIP).[8] In 2007, BSNL announced plans for providing 5 million broadband
connectivity and secured 80% of the INR 25 billion rural telephony project of Government of
India.[9] On 20 March 2009, BSNL launched blackberry services across India. BSNL paid Rs.
101.87 billion for 3G spectrum in 2010.[10] As of 2011, BSNL offers coverage in over 800 cities
across India.[11] BSNL launched in 2012 a 3G wireless pocket router named Winknet Mf50.[12]
BSNL 3G provides HSPA+ service with highest speed of 21.1 Mbit/s downlink and 5.76 Mbit/s
uplink.
BSNL announced the discontinuation of its telegram services from 15 July 2013, after 160 years
in service. It was opened to the public in February 1855; it was upgraded to a web-based
messaging system in 2010, through 182 telegraph offices across India.
Bharat Sanchar Nigam Limited, A Public Sector Enterprise also provide Fiber to the home plans
which are generally known as FTTH broadband service. It is the fastest broadband service which
has been started by the BSNL. BSNL FTTH service can provide the speed up to 100Mbps to the
Internet users.
As per Telecom Regulatory Authority of India Report dated 19 Feb 2016 BSNL has the 4th
position in Broadband market share. It has broadband market share of 14.54% as on 31.12.2015.
In wireless segment it is on 6th position with 8.16% of market share as on 31.12.2015.

UP PORTAL
A Web portal is most often a specially designed web site that brings information together from
diverse sources in a uniform way. Usually, each information source gets its dedicated area on the
page for displaying information (a portlet); often, the user can configure which ones to display.
Variants of portals include mashups and intranet "dashboards" for executives and managers. The
extent to which content is displayed in a "uniform way" may depend on the intended user and the
intended purpose, as well as the diversity of the content. Very often design emphasis is on a
certain "metaphor" for configuring and customizing the presentation of the content and the
chosen implementation framework and/or code libraries. In addition, the role of the user in an
organization may determine which content can be added to the portal or deleted from the portal
configuration.
A portal may use a search engine API to permit users to search intranet as opposed to extranet
content by restricting which domains may be searched. Apart from this common search engines
feature, web portals may offer other services such as e-mail, news, stock quotes, information
from databases and even entertainment content. Portals provide a way for enterprises and
organizations to provide a consistent look and feel with access control and procedures for
multiple applications and databases, which otherwise would have been different web entities at
various URLs. The features available may be restricted by whether access is by an authorized
and authenticated user (employee,member) or an anonymous site visitor.
Examples of early public web portals were AOL, Excite, Netvibes, iGoogle, MSN, Naver, Lycos,
Indiatimes, Rediff, and Yahoo!. See for example, the "My Yahoo!" feature of Yahoo! that may
have inspired such features as the later Google "iGoogle" (discontinued as of November 1,
2013.) The configurable side-panels of, for example, the modern Opera browser and the option
of "Speed Dial" pages by most browsers continue to reflect the earlier "portal" metaphor.
In the late 1990s the Web portal was a Web IT buzzword. After the proliferation of Web browsers
in the late-1990s many companies tried to build or acquire a portal to attempt to obtain a share of
an Internet market. The Web portal gained special attention because it was, for many users, the
starting point of their Web browsing if it was set as their home page. The content and branding of
a portal could change as Internet companies merged or were acquired. Netscape became a part of
America Online, the Walt Disney Company launched Go.com, IBM and others launched Prodigy
(-only users.) Portal metaphors are widely used by public library sites for borrowers using a login
as users and by university intranets for students and for faculty. Vertical markets remain for ISV's
offering management and executive intranet "dashboards" for corporations and government
agencies in areas such as GRC and risk management.

CLASSIFICATION
Web portals are sometimes classified as horizontal or vertical. A horizontal portal is used as a
platform to several companies in the same economic sector or to the same type of manufacturers
or distributors.[1] A vertical portal (also known as a "vortal") is a specialized entry point to a
specific market or industry niche, subject area, or interest.[2] Some vertical portals are known as
"vertical information portals" (VIPs). VIPs provide news, editorial content, digital publications,
and e-commerce capabilities. In contrast to traditional vertical portals, VIPs also provide
dynamic multimedia applications including social networking, video posting, and blogging.

10

WEB PORTALS
A personal portal is a Web page at a Web site on the World Wide Web or a local HTML home
page including JavaScript and perhaps running in a modified Web browser. A personal portal
typically provides personalized capabilities to its visitors or its local user, providing a pathway to
other content. It may be designed to use distributed applications, different numbers and types of
middleware and hardware to provide services from a number of different sources and may run on
a non-standard local Web server. In addition, business portals can be designed for sharing and
collaboration in workplaces. A further business-driven requirement of portals is that the content
be presented on multiple platforms such as personal computers, personal digital assistants
(PDAs), and cell phones/mobile phone/mobile phones. Information, news, and updates are
examples of content that would be delivered through such a portal. Personal portals can be
related to any specific topic such as providing friend information on a social network or
providing links to outside content that may help others beyond your reach of services. Portals are
not limited to simply providing links. Outside of business intracet user, very often simpler portals
become replaced with richer mashup designs. Within enterprises, early portals were often
replaced by much more powerful "dashboard" designs. Some also have relied on newer protocols
such as some version of RSS aggregation and may or may not involve some degree of Web
harvesting. Examples of personal portals include:
home.psafe.com A personal portal based on adaptive neural network technology provides
customizable content according to each user's navigation, and provide full security against
viruses, malware, phishing and bank fraud. The portal is developed by Brazilian online security
company PSafe.

11

CRM AND THE TELECOM SECTOR

An effective CRM system includes tools such as a skilled customer care staff and leading edge
automation and workflow management software platforms. With this tool, it is possible for a
telecom company to track sales enquiries, trouble tickets, emails, telephone calls, and customer
satisfaction surveys.

INDUSTRY CHALLENGES AND E-GAIN SOLUTIONS

CUSTOMER SERVICE IS KEY TO SALES AND LOYALTY
Telecom, especially mobile telecom, is a highly competitive and increasingly mature market. As
network coverage, handsets, and price plans become less important as differentiators, customer
service is increasingly seen as the key factor in customer acquisition and customer retention.
INCREASING PRODUCT AND SERVICE COMPLEXITY:
Mobile telephony providers face a significant challenge to introduce and support the range of
new products and services such as email, multimedia messaging, and synchronization with
handheld devices, etc.
Aliant, for instance, has achieved a 17% reduction in call handle time, which is
translates to a saving of approximately $ 1.5 million in operating staff expenses
THE OPPORTUNITY FOR SELF-SERVICE:
Organizations would like to reduce the costs of customer care by deflecting calls to web-based
service channels, preferably to self-service.
CUSTOMER SERVICE BECOMES THE DIFFERENTIATOR:
With the commoditization of products and services, fuelled by greater access to competitive
information over the web, customer service is one of the few ways organizations can themselves
and increase market share.

12

OBJECTIVES OF THE STUDY

To find out the relationship by knowing the satisfaction level of subscribers about the
telecom industry.

To know the customer opinion about tariff rates of BSNL.

Creating awareness to BSNL subscribers about the facilities in prepaid and postpaid
connections.

Analyzing the problem faced by BSNL subscribers

Analyzing which connection is more used by customers.

Analyzing which type of topping is more used by customers.

Analyzing the satisfaction level of customers towards BSNL connection.

SCOPE OF THE STUDY:

The study is conducted on BSNL prepaid and postpaid users at 'BSNL CUSTOMER SERVICE
CENTER. The study is confined to the area of UTTAR PRADESH. The size of the sample was
50.

13

METHODOLOGY
MARKETING RESEARCH
Definition of marketing research is approved by the board of the American Marketing
Association (AMA) is:
"Marketing research is the functions which links the customer and public To marketer through
information used to identity and define marketing Opportunities and problems; generate define
and evaluate, marketing Actions, monitor marketing performance, and improve understanding of
Marketing as a process. Simply, marketing research is the systematic design, collection,
analysis and Reporting of the data findings relevant to a specific marketing situation facing the
company.
Careful planning through all stages of the research is a necessity. Objectivity in research
is all- important. The heart of the scientific method is The objective gathering and analysis of
the information.
The function of marketing research within a company is to provide the Information
and analytical inputs necessary for effective

Planning of future marketing activity.

Control of marketing operations in the present.
Evaluation of marketing results.

A research may undertake any of three types of research investigations depending upon
the problem. These three types of research included.

Basic research
Applied research
Designated fact gathering

BASIC RESEARCH
It is also known as the pure fundamental research which refers to those studies, sole purpose of
which is the discovery of new information. It is conducted to extend the horizon in given area of
knowledge with no immediate application to existing problem.
APPLIED RESEARCH
It is an attempt to apply the various marketing techniques, which have been developed as
research, first and later on they become applied research techniques. It is an attempt to apply the
basic principles and existing knowledge for the purpose of solving the operational problems.
DESIGNATED FACT GATHERING
It refers to a research where the investigator attempts nearly to gather some predetermined data.
14

Steps in Marketing Research Process

Marketing Research Process can be carried out through the following steps:

Define the problem and research objectives Develop the

research plan

Collect the information

Analysis and interpretations

Present the findings

15

DEFINE THE PROBLEM AND RESEARCH OBJECTIVES

In a very sense, this is the heart of the research process. This is the first step,which calls for the
marketing manage and marketing research.
RESEARCH PLAN DEVELOPMENT
The second calls for developing the most efficient plan for gathering the needed information.
Not to forget the cost or values of research the Marketing manager must estimate process its
approval, Research plan calls For decision on
a) Data source
I.
Primary data to be collected for a specific purpose,
II.
Secondary data collected for another purpose and already existing
somewhere.
1. Research Approaches: Primary data can be collected in four ways:
1.
2.
3.
4.

Observational research
Focus group research
Survey research
Experimental research

2. Research
Instruments:
Marketing
researchers
can
use
questionnaires
in collecting of primary data, because of its flexibility, questionnaires is
by for the most common instrument used to collect primary data.
3.

Sampling Plan: This plan calls for the three aspects:a) Define the sampling unit.
b) Decide the sample size.
c) Decide the sampling procedure whether to use probability or non-probability
sampling methods.
d) 4. Contract method: once the sampling plan has been determined, this has to decide how
the subject should be contacted. The choices are mail, telephone or research interviews.
e) COLLECTION OF INFORMATION
f) Data collection phase is generally the most expensive and the most phase to error. Carry
out the field Work, collect data using the instruments, adjust the Problem of not at homes,
replaced, refusal to co-operate, biased or dishonest answers.
g) ANALYSIS AND INTERPRETATIONS
h) The next to last step is to extract pertinent findings from the collected data. The
researcher edits, code, tabulate the collected data.
16

17

PRESENTATION OF FINDINGS
As the last step in marketing research the researchers present the findings. The researchers have
to arrange the researched result according to an approved reporting format, get the report typed
and bound, present the copies of the report to the concerned authorities.
RESEARCH METHODOLOGY/ DESIGN
The methodology adopted for eliciting the data required for the study was survey method. It is
the overall pattern or framework of the project that will dictate as to what information is to be
collected, from which sources and by what procedures.
RESEARCH METHOD
Research methodology must be classified on the basis of the major purpose of the investigation.
In this problem, description studies have been under- taken, as the objective of the project is to
conduct the market share study to determine the share of the market received by both the
company and it's competitors,
DATA COLLECTION
The information needed to further proceed in the project had been collected through primary
data and secondary data.
PRIMARY DATA
Primary data consists of information collected for the specific purpose at hand for the purpose of
collecting primary data. Survey research is the approach best suited gathering description,
SECONDARY DATA
The secondary data consists of information that already exist somewhere, Having been collected
for another purpose. Any researcher begins the research work by first going through the
secondary data. Secondary data includes the information available with the company.
It may be the findings of research previously done in the field. Secondary data can also
be collected from magazines, newspapers, other surveys conducted by known research agencies
etc.
RESEARCH METHODOLOGY
The respondents are the mobile connection holders with BSNL toppings facilities. The survey
was carried in BSNL CUSTOMER SERVICE CENTER at Uttar Pradesh with the sample size of
50. The survey was carried out with the help of a structured questionnaire, which helps in
accomplishing the research objectives. The respondents by means of personal interview
administer this structured ended questionnaire.

18

LIMITATIONS

The present study is subjected to following LIMITATIONS.

Method of data collection was through personal interview and therefore bias becomes a
major limitation.
Due to the time constraints all the customers were not covered.
The sample was restricted to 50 customers, which may restrict the scope and completion
of study.
The scope of study is restricted only to the Uttar Pradesh.
Owing to their pre occupation some customers were unable to answer the complete
questionnaire.

19

 INDUSTRY PROFILE

The telecom network in India is the fifth largest network in the world meeting up

with global standards. Presently, the Indian telecom industry is currently slated to an estimated
contribution of nearly 1% to India's

The Indian. Telecommunications network with 110.Q1 million connections is the

fifth largest in the world and the second largest among the emerging economies of Asia. Today, it
is the fastest growing market in the world and represents unique opportunities for U.S.
companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in
2005, is expected to reach 250 million in 2007. According to Broadband Policy 2004,
Government of India aims at 9 million broadband connections and 18 million internet
connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to
62.57 million in FY2004- 2005. In the last 3 years, two out of every three new telephone
subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the
total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is
expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies
currently in use are Global System for Mobile Communications (GSM) and Code Division
Multiple Access ' (CDMA).. There are primarily 9 GSM and 5 CDMA operators providing
mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.

20

 Evolution of the industry-Important Milestones

ear

History of Indian Telecommunications

1
851

First operational land lines were laid by the government near

881

Telephone service introduced in India

883

Merger with the postal system

923

Formation of Indian Radio Telegraph Company (IRT)

Calcutta (seat of British power)

1
932

Merger of ETC and IRT into the Indian Radio and Cable

1
947

Nationalization of all foreign telecommunication companies to

Communication Company (IRCC)

form the Posts, Telephone and Telegraph (PTT), a monopoly

run by the government's Ministry of Communications

1
985

Department of Telecommunications (DOT) established, an

exclusive provider of domestic and long-distance service that

would be its own regulator (separate from the postal system)

1
986

Conversion of DOT into two wholly government-owned

companies: the Videsh Sanchar Nigam Limited (VSNL) for

international telecommunications and Mahanagar Telephone

Nigam Limited (MTNL) for service in metropolitan areas.

997

1
999

000

Telecom Regulatory Authority of India created.

Cellular Services are launched in India. New National
Telecom Policy is adopted.
DoT becomes a corporation, BSNL.

21

 Major Players
There are three types of players in telecom services:
-State owned companies (BSNL and MTNL)
-Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)
-Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea
Cellular, BPL Mobile, Spice Communications)

BSNL

On October 1, 2000 the Department of Telecom Operations, Government of India

became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now
India's leading telecommunications company and the largest public sector undertaking. It has a
network of over 45 million lines covering 5000 towns with over 35 million telephone
connections.

The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile,
Internet and long distance services throughout India (except Delhi and Mumbai). BSNL will
be expanding the network in line with the Tenth Five-Year Plan (1992-97). The aim is to
provide a telephone density of 9.9 per hundred by March 2007. BSNL, which became the
third operator of GSM mobile services in most circles, is now planning to overtake Bharti to
become the largest GSM operator in the country. BSNL is also the largest operator in the
Internet market, with a share of 21 per cent of the entire subscriber base.

BHARATI:
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 TeleVentures Limited was incorporated on July 7, 1995 for promoting investments in
telecommunications services. 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.

MTNL:

MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of
telecom services, expand the telecom network, introduce new services and to raise
revenue for telecom development needs of India's key metros - Delhi, the political
capital, and Mumbai, the business capital. In the past 17 years, the company has taken
22

rapid strides to emerge as India's leading and one of Asia's largest telecom operating
companies. The Govt, of India currently holds 56.25% stake in the company.

23


MTNL has over 5 million subscribers and 329,374 mobile subscribers. While the
market for fixed wire line phones is stagnating, MTNL faces intense competition from the
private playersBharti, Hutchison and Idea Cellular, Reliance Infocommin mobile services.
MTNL recorded sales of Rs. 60.2 billion ($1.38 billion) in the year 2002-03, a decline of 5.8 per
cent over the previous year's annual turnover of Rs.63.92 Billion.

RELIANCE INFOCOMM:

Reliance is a $16 billion integrated oil exploration to refiner}' 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 Infocomm's initiatives was launched on
December 28, 2002. This marked the beginning of Reliance's 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.lt 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.

TATA TELESERVICES:
Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over
200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides
basic (fixed line services), using CDMA technology in six circles: Maharashtra (including
Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over
800,000 subscribers. It has now migrated to unified access licenses, by paying a Rs. 5.45
billion ($120 million) fee, which enables it to provide fully mobile services as well.

The company is also expanding its footprint, and has paid Rs. 4.17 billion
($90million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime.
The new licenses, coupled with the six circles in which it already operates, virtually gives the
CDMA mobile operator a national footprint that is almost on par with BSNL and Reliance
Infocomm. The company hopes to start off services in these 11 new circles by August 2004.
These circles include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab,
Rajasthan, Uttar Pradesh (East) & West and West Bengal

24


employees. VSNL's main gateway centers are located at Mumbai, New Delhi,
Kolkata and Chennai. The international telecommunication circuits are derived via Intelsat and
Inmarsat satellites and wide band submarine cable systems e.g. FLAG, SEA-ME-WE-2 and
SEA-ME-WE-3.

VODAFONE:

Mumbai, Septemberl9,2007:Vodafone, the world's leading international mobile

communications company, has fully arrived in India. Vodafone Essar announced today that the
Vodafone brand will be launched in India from 21st September onwards. The popular and
endearing brand, Hutch, will be transitioned to Vodafone across India. This marks a significant
chapter in the evolution of Vodafone as a dynamic and ever-growing brand. The brand change
over the next few weeks will be unveiled nationally through a high profile campaign covering all
important media.

Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced

operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for
Mumbai. The company now has operations across the country with over 71.54 million
customers. IDEA:

Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand
designs to become a national player, but in doing so is likely lo become a thorn in the side of
Reliance Communications Ltd. IDEA operates in eight telecom "circles," or regions, in Western
India, and has received additional GSM licenses to expand its network into three circles in
Eastern India the first phase of a major expansion plan that it intends to fund through an IPO,
according to parent company Aditya Birla group.
Latest Customers + Revenue Market Share of Top5 Telecom Cos in India
Results of all the Telecom Companies for the quarter ending June-2009:
BhartiAirtel has 24.3% customer market share and 33.8% revenue market share.
Vodafone India has 18.8% customer market share and 20.7% revenue market share.
Idea Cellular has 11.2% subscribers market share and 12.1% revenue market share
BSNL has subscriber share of 12.7% and mere 10.2% of revenue share
Reliance Communications is with 18.9% customer market share and pathetic 11.5%
revenue market share.

25

40
35
30
25
consumar share market

20

revenue share market

15
10
5
0
airtel

vodafone

idea

bsnl

26

reliance

COMPANY PROFILE

Type State-owned
Founded

19th century, incorporated 2000

Headquarters Bharat Sanchar Bhavan,

HarishChandra

Mathur Lane,Janapth,New Delhi

Key people

Kuldeep Goyal(Chairman) & (MD)

Industry

Telecommunications

Products

wire!ess,telephone internet

television

Revenue

USS 7.03 billion (2009)

Owners(s)

The Government of India

Employees

357,000-march 31,2009

Web site

www.bsnl.co.in

27


Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation
Limited) is a state-owned telecommunication company in India. BSNL is the fourth largest
cellular service provider, with over 53.96 million customers as of March 31, 2009 and the largest
land line telephone provider in India. Its headquarters are at Bharat Sanchar Bhawan, Harish
Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status assigned to
reputed public sector companies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has
a customer base of 90 million as of June 2008. f3] It has footprints throughout India except for the
metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on March 31,
2008 BSNL commanded a customer base of 31.55 million Wire line, 4.58 million CDMA-WLL
and 54.21 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending
March 31, 2009 stood at INR 397.15b (US$7.03 billion) with net profit of INR 78.06b (US$1.90
billion). BSNL has an estimated market value of $ 100 Billion. The company is planning an IPO
within 6 months to offload 10% to public in the Rs 300-400 range valuing the company at over
$100 billion.

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest
Telecommunications Company providing comprehensive range of telecom services in India:
Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN,
VSAT, VoIP services, IN Services etc. Presently it is one of the largest & leading public sector
units in India.

BSNL has installed Quality Telecom Network in the country and now focusing on
improving 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, 49.76 Million GSM Capacity, more than 37382 fixed
exchanges, 46565 BTS, 3895 Node B ( 3G BTS), 287 Satellite Stations, 480196 Rkm of OFC
Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5
Lakhs villages.

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

BSNL is numero uno operator of India in all services in its license area. The
company offers vide ranging & most transparent tariff schemes designed to suite every
customer.

BSNL cellular service, CellOne, has 55,140,282 2G cellular customers and

88,493 3G customers as on 30.11.2009. In basic services, BSNL is miles ahead of its rivals,
with 35.1 million Basic Phone subscribers i.e. 85 per cent share of the subscriber base and 92
percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet
Customers who access Internet through various modes viz. Dial-up, Leased Line, DIAS,
Account Less Internet (CLI). BSNL has been adjudged as the NUMBER ONE ISP in the
28

country.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP

infrastructure that provides convergent services like voice, data and video through the same
Backbone and Broadband Access Network. At present there are 0.6 million DataOne broadband
customers.

The company has vast experience in Planning, Installation, network integration and
Maintenance of Switching & Transmission Networks and also has a world class ISO 9000
certified Telecom Training Institute. Scaling new heights of success, the present turnover of
BSNL is more than Rs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390
million (US $ 2.26 billion) for last financial year. The infrastructure alone is worth aboutRs.630,
000million (US$14.37billion). BSNL plans to expand its customer base from present 47 million
lines to 125 million lines by December 2007 and infrastructure investment plan to the tune of Rs.
733 crores (US$ 16.67 million) in the next three years.

The turnover, nationwide coverage, reach, comprehensive range of telecom

services and the desire to excel has made BSNL the No. 1 Telecom Company of India

VISION
To become the largest telecom Service Provider in Asia.
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 technology to provide affordable and innovative products/services across
customer segments provide a conducive work environment with strong focus on
performance Establish efficient business processes enabled by IT.

MISSION
To provide world class State-of-art technology telecom services to its customers on
demand at competitive price,
To Provide world class telecom infrastructure in its area of Operation and to contribute to
the growth of the country's economy.

OBJECTIVES
To be the Lead Telecom Services Provider.
To provide quality and reliable fixed telecom service to our customer and thereby
increase customer's confidence.
To provide mobile telephone service of high quality and become no. 1 GSM operator in
its area of operation.

To provide point of interconnection to other service provider as per their requirement

29

promptly.

To facilitate R&D activity in the country.

FINANCE:
Bharat Sanchar Nigam Limited, the largest Public Sector Undertaking of the Nation, is
certainly on a financial ground that's sound.

The Company has a net worth of Rs. 88,634 crores (US$ 17.40 billion),
authorized equity capital of Rs. 10,000 crores (US $ 1.96 billion), Paid up Equity Share Capital
of Rs. 5,000 crores (US $ 0.98 billion) and Revenues is Rs. 35,812 crores (US $ 7.03 billion) in
2008-09.

(Note: 1 US $ = 50.9500 INR as on 31-03-2009)

ASSETS:

Bharat Sanchar Nigam Limited has got net fixed assets valuing more than Rs. 54,321
Crores (US $ 10.67 billion), which are in the form of Land, Buildings Cables, Apparatus &
Plants etc. as on 31.03.2009.

REVENUE:

Revenue earned by BSNL during last five years

rupees in crores
41000
40000
39000
38000

rupees in crores

37000
36000
35000
34000
33000
2004-05

2005-06

2006-07

2007-08

30

2008-09

Gross Investment in Fixed Assets:

The BSNL is making substantial investment year to year for its network expansion and

modernization. During the current financial year BSNL has made the gross investment of Rs.
8,613 crore ( US $ 1.69 billion) in Fixed Assets. These investments have been financed by the
internal accruals.

Financial year
12000
10000
8000

Financial year

6000
4000
2000
0
2004-05

2005-06

2006-07

2007-08

2008-09

Cumulative Capital Outlay

BSNL has Gross Fixed Assets of over Rs. 132243 Crores (US $ 25.96 billion)

ason31.03.2009.

31

Financial year
140000
120000
100000

Financial year

80000
60000
40000
20000
0
2004-05

2005-06

2006-07

2007-08

2008-09

GROWTH PLAN

BSNL's future plan include a fast expansion programme of increasing the present 34
million lines to twice that number by 2005 and some 120 million lines by 2010.

The shift in demand from voice to data domination, and from wire line to
wireless, has revolutionized the very nature of the network. BSNL has already set in place
several measures that should enable it to evolve into a fully integrated multi-operator by 2005
and its incumbent status, size, infrastructure and human resource should certainly, give it a
distinct advantage.

Consolidation of the network and maintaining high quality of service comparable

to International standards is the key aim of the Growth Plan. Objective of the plan are:

The telephone connection shall be provided on demand and it shall be sustained

The Network shall be made fully digital. All the technologically obsolete analog
exchanges will be replaced with digital exchanges
To provide digital transmission links up to all SDCAs.
Digital connectivity shall be made available to all the exchanges by 2007.
Extensive use of Optical fiber System in the local, Junction and long distance network so
as to make available sufficient bandwidth for the spread of Internet and Information
technology.
ISDN services shall be extended to all the district headquarters, subject to demand.
To provide Intelligent Network Services, progressively all over the country (major cities
have already been covered).
To set up Internet Nodes progressively up to District headquarters level.
32

 Upgrading existing STD/ISD PCOs to full fledged Public Tele-Info Centers (PTIC) for
supporting Multimedia capability and Internet Access.
Replacement of life expired, analogue coaxial and radio systems.

Introduction of Wireless technology (Supporting Internet Access) and optical
fiber technology in subscriber loop.

Introduction of latest telecom services like National directory enquiry,
computerization etc.

Cellular Mobile Service 'Cell One' of BSNL was launched on 19th October 2002
. The scheme will cover 4 million customers in two phases. Phase-I will cover about 1.5
million customers covering about 1000 cities during 2002-03, which will be expanded to
4 million in phase-II.

33

PROJECTS RECENTLY IMPLEMENTED/UNDER DEVELOPMENT

National Internet Backbone of BSNL
Voice over IP
Broadband Services - ADSL & High Speed Internet
Managed Leased Line Network (MLLN)
Access Network - LMDS, DLCs, RLC etc.
Internet Exchange Points - IXP & Internet Data Centers (IDC)
E-Commerce.
National Internet Backbone OF BSNL
The National Internet Backbone of BSNL consists of 432 Point of Presence( POP) that
gives it the capability of transporting IP traffic from every hook and corner of the country.
This network provides internet services to more than 1 million dial-up customers
including about 3.5 lakh customers on CLI basis.

2nd in the line of IP network, BSNL commissioned a state-of-the-art Multi

Protocol Label Switching (MPLS) NETWORK TAKING India into the next stage of the IP
evolution. This network has 10 physical nodes with all district headquarters designated as virtual
nodes. This network has opened up a new market segment of secure and reliable Virtual Private
Networks (VPNs) for corporate customers.

The latest endeavor of BSNL is a world-class multi-gigabit multiprotocol,

convergent IP infrastructure which will provide voice, data and video services through the same
backbone. In terms of infrastructure for broadband services, this would put India at par with
more advanced nations. Designated as NIB-II this will be implemented in the form of four
projects.
Project 1 involves building up of MPLS backbone
Project 2.1 is for narrow band access
Project 2.2 is for broadband access
Project 3 is to put systems and processes in place to integrate network

All the above projects in form of NIB-II are at different stages of implementation and as
per schedule .They will be operational in the third quarter of this year.

The services that will be available to customers when NIB-II is in place:

Narrowband and broadband Internet access.

Narrowband and broadband Internet access.

Managed OPE
Value Added Services like encryption, firewall and NAT
Messaging: Plain Vanilla and feature rich
Data Center Services: web hosting and web-collocation.
Content based Services: e.g. video multicast, video on demand.
interactive gaming.

34

SERVICES
When it comes to connecting the four comers of the nation, and much beyond, one
solitary name lies embedded at the pinnacle - BSNL. A company that has gone past the
number games and the quest to attain the position of a leader. It is working round the
clock to take India into the future by providing world class telecom services for people of
India. BSNL is India's no. 1 Telecom Service provider and most trusted Telecom brand of
the Nation.

Driven by the very best of telecom technology from chosen global leaders, it
connects each inch of the nation to the infinite corners of the globe, to enable you to step into
tomorrow. Here is an overview of the World Class services offered by the BSNL:

Basic Telephone Services

The Plain old, Countrywide telephone Service through 32,000 electronic exchanges.
Digitalized Public Switched Telephone Network (PSTN) with a host of Phone Plus value
additions.
BSNL launched DataOne broadband service in January 2005 which shall be
extended to 198 cities very shortly. The service is being provided on existing copper
infrastructure on ADSL2 technology. The minimum speed offered to the customer is 256 Kbps
at Rs. 250/- per month only. Subsequently, other services such as VPN, Multicasting, Video
Conferencing, Video-on-Demand, Broadcast application etc will be added.
INTERNET
Keeping the global network of Networks networked, the countrywide Internet Services of
BSNL under the brand name includes Internet dial up/ Leased line access, CLI based
access (no account is required) and DIAS service, for web browsing and E-mail
applications. You can use your dialup sancharnet account from any place in India using
the same access no '172233', the facility which no other ISP has. BSNL has customer
base of more than 1.7 million for sancharnet service. BSNL also offers Web hosting and
co-location services at very cheap rates.

ISDN

Integrated Service Digital Network Service of BSNL utilizes a unique digital network
providing high speed and high quality voice, data and image transfer over the same line. It can
also facilitate both desktop video and high quality video conferring.

INTELLIGENT NETWORK

Intelligent Network Service (In Service) offers value-added services, such as:

India Telephone Card (Prepaid card)

Free Phone Service (FPH)
Account Card Calling (ACC)
35

Virtual Private Network (VPN)

Tele-voting
Premium Rae Service (PRM
Universal Access Number (UAN) and more

36

 I-NET:

India s x.25 based packet Switched Public Data Network is operational in 104 cities of
the country. It offers x.25 x.28 leased, x.28 Dial up (PSTN) Connection) and frame relay
services.

LEASED LINES & DATACOM

BSNL provides leased lines for voice and data communication for various application on
point to point basis. It offers a choice of high, medium and low speed leased data circuits as well
as dial-up lines. Bandwidth is available on demand in most cities. Managed Leased Line
Network (MLLN) offers flexibility of providing circuits with speeds of nx64 kbps up to 2mbps,
useful for Internet leased lines and International Principle Leased Circuits (IPLCs).

CELLULAR MOBILE SERVICES

POSTPAID & PREPAID

BSNL's GSM cellular mobile service Cellone has a customer base of over 5.2 million.
BSNL Mobile provides all the services like MMS, GPRS, Voice Mail, E-mail, Short Message
Service (SMS) both national and international, unified messaging service (send and receive emails) etc. You can use BSNL Mobile in over 160 countries worldwide and in 270 cellular
networks and over 1000 cities/towns across India. It has got coverage in all National and State
Highways and train routes. BSNL Mobile offers all India Roaming facility to both pre-paid and
post-paid customers (including Mumbai & Delhi).
WIRELESS IN LOCAL LOOPS:
This is a communication system that connects customers to the Public Switched
Telephone Network (PSTN) using radio frequency signals as a substitute for conventional
wires for all or part of the connection between the subscribers and the telephone
exchange.

Countrywide WLL is being offered in areas that are non-feasible for the normal network.
Helping relieve congestion of connections in the normal cable/wire based network in
urban areas.
Connecting the remote and scattered rural areas.
Limited mobility without any air-time charge
BROADBAND SERVICES;

BSNL is in the process of commissioning of a world class, multi-gigabit, multi-protocol,

convergent IP infrastructure through National Internet Backbone-II (NIB-II), that will provide
convergent services through the same backbone and broadband access network. The Broadband
service will be available on DSL technology (on the same copper cable that is used for
connecting telephone), on a countrywide basis spanning 198 cities.

In terms of infrastructure for broadband services NIB-II would put India at par
with more advanced nations. The services that would be supported includes always-on
broadband access to the Internet for residential and business customers, Content based services,
37

Video multicasting, Video-on-demand and Interactive gaming, Audio and Video conferencing,
IP Telephony, Distance learning, Messaging: plain and

feature rich, Multi-site MPLS VPNs with Quality of Service (QoS) guarantees. The
subscribe will be able to access the above services through Subscriber Service Selection System
(SSSS) portal.

Key Objectives
To provide high speed Internet connectivity (up to 8 Mbps)
To provide dial VPN service to MPLS VPN customers.
To provide Virtual Private Network (VPN) service to the broadband customers
To provide multicast video services, video-on-demand, etc. through the Broadband
Remote Access Server (BRAS).
To provide a means to bill for the aforesaid services by either time-based or volumebased billing. It shall provide the customer with the option to select the services through
web server
To provide both pre-paid and post paid broadband services Services available
through Broadband
High speed Internet Access: This is the always-on Internet access service with speed
ranging from 256 kbps to 8 Mbps.
Multicasting: This is to provide video multicast services for application in distance
education, telemedicine etc
Dial VPN Service: This service allows remote users to access their private network
securely over the NIB-II infrastructure.
Video and Audio Conferencing
Content based Services: Like Video on Demand, Interactive Gaming, Live and time
shifted TV

38

 Several Steps have been taken at BSNL to augment the quality of customer care to
international standards.
Access round the clock help at following toll free numbers

Dataone Broadband' 1600-424-1600'

PSTN Call Center' 1500' (in select states)
Sancharnet Help Desk' 1957'
CellOne all India Help '9400024365'

All BSNL Customer Service Centers (CSCs) remain open on all seven days from 8.00 AM to
8.00 PM without any break for all activities.
Cheque deposit machines have also been installed in many cities, so that customers can
make payments 24X7 at their convenience.
Customers can also make payments by cheque/Demand Draft to BSNL franchisees all over
the country.
With a view to simplify and offer customer friendly services, more than one Bfone
connections can be applied on a single application form. Accordingly, a single demand note
would be issued to the customer in respect of all the connections applied for.
Shifting charges for local as well as all India shifting of fixed telephone (bfone) has been
abolished.
Pagers being given to outdoor staff in a phased manner for speedy rectification of faults.
Majority of the local network is built up on jelly filled and OFC for trouble free service.
Internal Distribution Points (DPs) being provided in the customer premises to eliminate the
faults arising out of overhead wires.
Extensive use of digital loop carrier (DLC)/Wireless in Local Loop (WLL) system for
improving reliability of external plant.
Remote Line Units (RLUs). Remote subscriber Units (RSUs) being provided extensively to
reduce the long lengths of copper cables.
Establishing call centers across the nation to provide single window solutions and
convenience to customers
Countrywide Network Management & Surveillance System (NMSS) to ensure uninterrupted
and efficient flow of telecom traffic.
Application Forms for new connections have been made free of charge for all services
Procedure for restoration of telephones disconnected due to nonpayment simplified and
powers delegated to Secondary Switching Area (SSA) heads
39

 Payment of telephone bills being received on Saturday and Sunday through cheques in City
Telecom Offices (CTOs).

SOCIAL COMMITMENT

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 telecommunications is of utmost importance for achievement of the country'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;

40

THEORETICAL FRAME WORK

Till recently, most marketers focused on traditional modes of marketing to segment and
acquire few customers from its target segments, using the tools and techniques developed
for mass marketing in the industrial era, as a way to engender growth. In the present
competitive era, this is proving to be highly ineffective. Today, there is a different
approach to business that involves relationship marketing, customer retention and crossselling, leading to customer extension, which is a far cry from the traditional
segmentation model.

The relative and market emergence of CRM as a business strategy has radically

transformed the way organization operates. There has been a shift in business focus from
transactional to relationship marketing where the customer is at the center of all business activity
and organizations are now desperately trying to restructure their process around the needs of
their strategically significant customers. The critical driver of such a seismic shift towards
customer orientation is the realization that customers are a business asset that when managed
effectively can derive continuous and sustainable economic value for an organization over their
lifetime.

The dynamics of the business ecosystem have changed the way in which

companies do business both in relationship management and the streamlining of their

operations. Relationship marketing is emerging as the core marketing activity for business
operating in fiercely competitive environments. On an average, businesses spend six times more
to acquire new customers than to keep them. Therefore, many firms are now paying

41

 more attention to their relationships with existing customers to retain them and increase
their share of customer's purchases. The practice of relationship marketing also has the
potential to improve marketing productivity through improved marketing efficiencies and
effectiveness.

Retaining and developing customers has long been a critical success factor for

businesses. In that sense, Customer Relationship Management is not new, previously falling
under the guise of customer satisfaction. Worldwide, service organizations have been pioneers in
developing customer retention strategies. Banks have relationship managers for select
customers, airlines have frequent flyer programs to reward loyal customers, credit card
companies offer redeemable bonus points for increased card usage, telecom service operators
provide customized services to their heavy users, and hotels have personalized services for their
regular guests. It is, however, with the rapid rise of new entrants into the market place and
increased competition that companies in other sectors have recognized the business potential
within a captured base.

Sluggish growth rates, intensifying competition and technological developments

businesses induced to reduce costs and improve their effectiveness. Business process reengineering, automation and downsizing reduced the manpower costs. Financial restructuring
and efficient fund management reduced the financial costs. Production and operation costs have
been reduced through Total Quality Management (TQM), Just in Time (JIT) inventory, Flexible
Manufacturing Systems (FMS) and efficient Supply Chain Management (SCM). However,
reduction in costs alone is no longer enough or is necessarily an effective strategy.

42


In
facing

the

competitive
threats, such
as

new

entrants,
pricing
pressures,
technology
along
the

with
related

costs

and

also
including
the

time

lags

in

procuring,
maintaining
and
strengthenin
g

one's

market,
more

and

more
organization
s
43

are

realizing
that

the

traditional
marketing
models
no

is

longer

effective.
With a flood
of

new

entrants
offering
quality
products
and.
services

at

lower
prices;
many
sectors have
been turned
into
commodity
markets.

In a market place where loyalty has plummeted and the cost of acquiring new

customers is prohibitive, companies have turned to their current customers in an attempt not only
to retain them but to exploit the potential within. This has enabled them not only to respond to
the threats in their market place but also positioned them strategically to take advantage of the
44

opportunities available.

45

 BENEFITS OF CRM :

The benefits of customer relationship management are considered abound. It allows

organizations not only to retain customers, but enables more effective marketing, creates
intelligent opportunities for cross selling and opens up the possibility of rapid introduction of
new brands and products. To be able to deliver these benefits, organizations must be able to
customize their product offering, optimize price, integrate products and services and deliver the
service as promised and demanded by the customer base.

Keeping the customer happy is obviously one way of ensuring that they stay with

the organization. However, by maintaining an overall relationship with the customer, companies
are able to unlock the potential of their customer base and maximize the contribution to their
business. Whilst the value of customer relationship management has been identified by
organizations, the full implications and benefits are yet to be. Those responsible for delivery are
perhaps the most informed about these strategic benefits yet the transformation is a long-drawnout process.

The strategic benefits of customer relationship management allow companies to

reduce the cost of customer acquisition and give established players the ability to react like a
new market entrant, the very people they are battling against. Ironically these are increased and
the potential of customers can be then capitalized through cross selling of other products and
services. It is important to understand the key benefits of CRM for most companies. These
benefits generally fall into three categories: cost savings, revenue enhancement, and strategic
impact.

46

Based on successful CRM implementations, the following benefits seem reasonable:

Increased sales revenues. Increased sales result from spending more time with customers,
which results from spending less time chasing, needed information (i.e., productivity
improvement).

Increased with rates. Win rates improve since companies can withdraw from unlikely or
bad deals earlier on in the sale process.

Increased margins. Increased margins resulting from knowing customers better,

providing a value-sell, and discounting prices. Improved customer satisfaction ratings.
This increase occurs since customers find the company to be more responsive and better
in touch with their specific needs.

Decreased general sales and marketing administrative costs. This decrease occurs since
the company has specified its target segment customers, it knows their needs better, and
thus it is not wasting money and time for example, on mailing information to all
customers in all existing and potential target segments.

THE RELATIONSHIP CHALLENGE

Customer relationship management does not enable a quick win. It is a long-term

approach that has to be adopted at a strategic level. However, the journey of understanding the
strategic benefits of relationship management has just begun. To a greater degree, companies
have understood the implications of customer relationship management and have identified the
risk to their business of not doing so, namely loss of customers and competitive attach.

47

They are yet to look at the bigger picture and understand all of the associated

benefits that would enable their business strategies to be successful. The competencies required
to deliver these customer benefit are: to deliver on its service promise, integrate products and
service channels effectively, customize products, service and their respective prices, create
opportunities for cross selling and delivery mechanisms for the onward promotion of these
products and services and reduce the gestation period to market by allowing quick and effective
introduction of new products and services.

48

TYPES OF CRM

On the basis of business srocess automation analysis of operational data, and customer

interaction software, CRM can also be seen as the following types:

1. Operational
2. Analytical
3. Collaborative

OPERATIONAL CRM

The automation of horizontally integrated business processes involving front office

customer touch points - sales, marketing, and customer service (call centre, field service) - via
multiple, interconnected delivery channels and integration between front office and back office.
The operational CRM is a process or an approach, which involves the areas where direct
customer contact is possible. Operational CRM represents the automation of business processes
involving customers.

Its purpose is to provide transaction level data about individuals and products, and

provide support for customer facing process, such as direct mail, phone interactions, Web-based
communications, and point of sale information.

Because operational solutions directly effect the customer, they are very

appealing and often are the first implemented components of a CRM are:

49

Sale force automation

o

Account Management

Opportunity Management

Contact Management

Activities Management

Price and Product List Configuration

Sales Incentives Plans

Sales Forecasting and Reporting

Customer Service automation

o Service Request / Customer Complaints Management

o Web-enabled Contact Center Management

A customer interaction centre (CIC) is a critical component of operational CRM,

whether implemented for sale, marketing, or customer service functions. The CIC
accommodates multiple channel for customer interaction and critical functions,
including customer service/support, field service dispatch, quality management,
intelligent routing, case-based reasoning, and knowledge repositories. The CIS is the
intelligent routing, case-base reasoning, and knowledge repositories. The CIS is the
key to consolidating customer interaction and developing and unified, enterprise view
of the customer.
o Sale Force Automation, also known as "technology Enabled Selling (TES)'\ SFA is
the application of information systems technologies to sales activities. This includes
accurate

business

forecasts,

generating

customized

50

presentation and proposals and personalized communications by the field

representatives. It also handles the entire sales pipeline from lead generation to closure
and activities like calendar, diary management.
o Call centre systems provide extensive customer service by enabling customers to receive
any information they need, answering their queries, buying products

and receiving,

payments promptly.

Includes customized service and support addressing specific issues raised

by customers, tracking cases and escalations, track progress, and identifying

opportunities to cross/up-sell.
o Order management - In the simplest sense, this includes quote generation, campaigns;
and service requests, pricing and ordering of products.
o Invoicing or billing this includes multiple order billing, multicurrency billing and
pricing functionalities in a minimal feature tool.
Marketing automation and Management enable companies to measure and track

campaigns develop and refine strategies, gain insights into buying behavior, revenues and
profitability using marketing analytics.
o Today, the consumer approaches the business in far many ways than in the past.

The

various interaction points are referred as "Customer Touch points."

o Technological Developments have made the job of a marketer more difficult. The
consumer today is flooded with information from various sources to the extent that
it

51

sometimes leads to information overload. For organizations, this is a major

problem as it means that there are several ways by which a prospect or a customer learns
about or experiences any organization.
o This could be the organization's catalogue, website, word of mouth through customers,
through employees of that organization, etc. all such sources from which one gets in
touch with the organization are called "Customer Touch points."
o New sources of communication, faster means of transportation, changes in life-style,
increasing international trade and exposure to various media are some of the reasons for
an increase in the number of customer touch points. This is a big challenge of
organizations as in how to monitor so many different sources in order to ensure that the
same message reaches the end customer.
o One of the most important customer touch point for any organization is the Customer
Care help line, wherein the customers can register their complaint or get information
about the products or services provided by that organization. A large multinational bank
once has had the entire process such that after a phone connection had been established
with the bank's call centre, it took six-odd minutes to speak to the customer care
executive. This is a long time keeping in mind that many of the customers usually call
when they have some problem and want an immediate solution.

52

 ANALYTICAL CRM

The analysis of data created on the operational side of the CRM equation for the purpose

of business performance management, Analytical CRM is inextricably tied to data warehouse

architecture and is most often manifested in analytical applications that leverage data marts.
Analytical CRM is the synthesis and interpretation of operational data to identify opportunities,
optimize customer interactions and manage business performance. It also provides the insight
into customer behavior needed to implement intelligent personalization.

Analytics involves the capture, storage, extraction, processing, interpretation and

reporting customer data. It works on data gathered from multiple sources; from marketing
campaigns, key accounts and market or product group, and is used as a strategic planning
support tool. Analytical CRM takes the information that operation CRM so diligently gathers,
and runs algorithms over it for analysis and interpretation purposes, to provide the insight and
data interpretation that is lacking in operational CRM. This includes:
1. Data warehouses: Data warehouse is system for storing and delivering massive quantities
of data that aids in analysis and decision-making. It is frequently use for decision support
within an organization, and also allows the organization to classify its data, coordinate
updates and identify relationships between information gathered from different parts of
the organization.
2. Data marts: Data marts are subject-specific data warehouses; often departmental or based
on line-of-business.
3. Vertical and application-specific analytic tools.

53

 4.

Marketing Automation
Campaign Management
Database Marketing
Outbound Call Center Management

5.

Optimizes profitability, revenue and customer satisfaction Analysis

of:
What Are the Buying Patterns? Cross Selling Opportunities?
Who are the Most Profitable Customers / Products / Services ?
Competition?

6. Customer Profiting & Categorization.

7. Up Selling / Cross Selling of Products & Services
8. Fraud Analysis
9. Churn Management

Analytical CRM functions

The following are the functions of analytical CRM:
Create a comprehensive customer knowledge base while ensuring privacy: Capturing all
relevant customer information from different sources, channels, and touch-points before,
during, and after the sale and then integrating it into a customer knowledge base that
provides a 360 degrees view of the customer. This knowledge base must; however, be
guarded with utmost care so that the customers' right to privacy is never compromised in
any way.
Measure and predict customer behavior by analyzing customer knowledge: Applying a
comprehensive set of analytical methods to measure
and optimize
customer
relationship and answering all

54

 relevant business questions.

The customer intelligence that results from this analysis

includes:
Customer behavior: This is expressed through customer preference, priorities, and
activities.
Customer Value: This is expressed in terms of customer profitability, customer lifetime
value, and potential.
Customer portfolio: This requires developing a clear understanding of the composition of
customer portfolio and how it can be optimized.
Deploy the results of the analysis to improve customer value: The insights gained
through the above analyses helps a company gear its CRM processes towards customer
centricity, and improve its customer interactions. Following are possible outcomes of
deployment of the analytical insights:
Acquiring new profitable customers by cloning your best customers.
Improving relationships with existing customers by addressing their individual needs
more effectively and more efficiently. This is accomplished through automating and
personalizing interactions with them on the basis of the sound customer knowledge
acquired through CRM analytics.
Optimizing cross-selling and up-selling opportunities. Improving customer loyalty and
reducing a customer's propensity to churn.
Targeting high-value customers: CRM analytics provides a company with the knowledge
of the customer lifetime value that enables a company to focus its limited resources in
marketing, sales, and service at high-value customers.
Integrate customer value into strategic enterprise management to improve shareholder
value. An improved understanding of customers

and customer segments facilitates integration of marketing sales, and service strategies

into the enterprise strategy.

55

Customer
Transaction

Information
Cu
sto
me
r
Da
ta

Analysis and

Des
ign
Rel
eva
nt

Wa
reh
ou
se

Personalization

Broadcast through

Segmentation All Channels

Person
alizatio
n
For
each
custom
er

Reach
every

Facili
tate

Customer

Intera
ction

where

COLLABORATIVE CRM

Collaborative CRM includes a suite of customer interaction software such as e-mail

management and conferencing tools. Collaborative CRM takes things a stage further, and
provides a point of interaction between customers, staff and business partners, through new
and traditional groupware/web technologies.

The application of collaborative service (e.g., personalized publishing, e-mail,

communities, conferencing, Web-enabled customer interaction centers) to facilitate

interactions between customers and organizations (e.g., customers to sales, sales to marketing,
organizational activities related to customer information) for the purpose of improving coordination and communication, thereby establishing lifetime customer value beyond the
transaction (i.e., a "partnering relationship").

56

 This includes technologies such as:

Voice - Interactive Voice Response (IVR), Computer Telephony Integration
(CTI), and Automatic Call Distribution (ACD) Conferencing - Web Conferencing Response:
Email, Fax and collaborative chatting.

BENEFITS OF CRM WITH THE HELP OF TYPES OF CRM

Highlighting a few benefits whereby different types of CRM help enterprises:

o Retain existing customers, CRM helps increase customers loyalty by tracking and
coordinating all customer interactions It also gives the customer a single,
consistent and uniform experience irrespective of the channel used to interact with
the company.
o Attract, acquire, and grow new customers. CRM helps companies in refining
strategies and take timely action by providing real-time feedback on marketing
initiatives and sales leads through analysis and reports.
o Recognize and take advantage of new competitive opportunities. Because all
interactions with a customer (or potential customer) are tracked, opportunities for
up selling and cross selling are more easily recognized.
o Improved response time to customer requests for information. With 24-hour
access to information and faster tools for communication such as email, web chat,
etc., the customer can contact anytime and from anywhere.

57

o Product meets customer requirements; Based on the customer like and dislikes and
with the capability of online configuration, companies or customers can create
products suiting their needs.
o Improved customer satisfaction, By analyzing the customer behavior and
providing a single view of the customer across the departments, line-of-business
or the interaction channels, CRM helps in better servicing of the customer.
o Improved revenue and reduced cost, Becoming customer centric increases
revenue, profitability and employee productivity, as well as improve overall
shareholder value.

Facets & Elements of CRM :

1.CRM Vision : Leadership, Market Position, Value Proposition

2.CRM Strategy: Objectives, Segments, Effective Interaction

Organizational
collaboration
cultureMonitor
and structure
customer
understanding
people skill
rstand Requirement
Culture
and Structure
Expectations
Satisfaction
vs. Competition

5.CRM Process: Customer Life Cycle, Knowledge Management

6.CRM information: Data, Analysis, One view Across Channels
7.CRM Technology: Applications, Architecture, infrastructure
8.CRM Metrics: Value Retention, Satisfaction, Loyalty, Cost to Serve

58

 Achieving the long-term value of customer relationship management (CRM) requires a

strategy involving the whole business and should be approached at an enterprise level.
Only a small, but growing, number of enterprises are tackling CRM at this level, with
most CRM initiatives consisting of departmental projects or attempts to integrate the
work of multiple projects.

Executing enterprise-level CRM is not easy. It requires board-level vision and

leadership to drive a. relentless focus on the customer." It involves learning new customer
management skills, potentially difficult changes to processes, culture and organization, and
grappling with the technology challenges of multichannel alignment, systems integration and
data quality. Even if the board accepts the need for enterprise-level CRM, the quarterly demands
of revenue and profit targets, especially in delicate economic conditions, often mean that,
although CRM is the most important challenge facing an enterprise, it is not seen as the most
urgent.

This typically results in a focus on isolated tactical "quick wins" until conditions

are better. Through 2005, enterprises that use a strategic CRM framework to estimate, plan and
promote their CRM initiatives while building up their capabilities in small piloted steps are
twice as likely to achieve planned business benefits as enterprises that pursue projects without
framework (0.7 probabilities).

The framework emphasizes the need to create a balance between the requirements

of the enterprise and the customer. The two central building blocks in the Figure (value
customer experience and organizational collaboration) are joined by a yin and yang motif to
emphasize that this is where people meet, build relationships and provide value to each other.

59

Through 2005, 90 percent of successful CRM initiatives will have balanced the

needs of improved customer experience with improved organizational collaboration (0.8

probability). Too many CRM initiatives suffer from an inward focus on the enterprise, whereas
the point of CRM is to achieve a balance between value to shareholders or stakeholders and
value to customers for mutually beneficial relationships.

1 Vision: Successful CRM demands a clear vision so that a strategy and implementation
can be developed to achieve it. The CRM vision is how the customer-centric enterprise
wants to look and feel to its customers and prospects - the customer value position (CVP)
and the corporate brand values are key to the CRM vision.
Without a CRM vision, the enterprise will not stand out from the competition,
target customers will not know what to expect from it and employees will not know what to
deliver in terms of external customer experience. A successful CRM vision is the cornerstone
to motivating staff, generating customer loyalty and gaining a greater market share.
"Creating a CRM Vision" defines a CRM vision, outlines the key steps and challenges in
creating it and discusses its role in creating a successful CRM program.

2 Strategy: A CRM strategy is not an implementation plan or road map A real CRM
strategy takes the direction and financial goals of the business strategy and sets out how the
enterprise is going to build customer loyalty - that "feel-good factor" of customer connection
with an enterprise that means customers stay longer, buy more, recommend the enterprise to
others and are more willing to pay a

60

 premium price: The objectives of a CRM strategy are to target, acquire, develop and
retain valuable customers to achieve corporate goals.

3. Valued Customer Experience: Customers' experiences when interacting with the

enterprise play a key role in shaping their perception of the enterprise - the value it
provides and the importance it place on the customer relationship. Good customer
experiences drive satisfaction, trust and long-term loyalty. Poor customer experiences
have the opposite effect and, because bad new travels faster and further than good news,
they harm the enterprise's ability to create new relationships with prospects. No amount
of internal "second guessing" can simulate what it's really like to be a customer.

4. Organizational Collaboration : Many enterprises believe that implementing CRM

technologies makes them a customer-centric organization. They forget, ignore or
deliberately avoid the necessary changes to the enterprise itself. True CRM means that
individuals, teams and the whole enterprise must become more focused on the needs and
wants of the customer.
The term "organizational collaboration, ''highlights the many facets of the
customer-centric internal change needed to deliver the required and desired external
customer experience. As a critical part of a CRM program, it will involve changing
organizational structure, incentives and compensation, skills and even the enterprise culture.
Ongoing change management will be key.

61

 5. Process: Past efforts to re-engineer processes were primarily driven by the desire to
improve the efficiency of an enterprise and reduce costs. The beneficiary was the enterprise,
not its customers. The rise in CRM has led to a focus on reworking key processes that touch
the customer and asking customers which processes matter to them. We call this customer
process re-entineering. Enterprises frequently do not realize that their functionally
fragmented processes often mean that the customer has a poor experience and receives less
than the expected value.
Successful re-engineering should create processes that not only meet customers'
expectations, but also support the customer value proposition, provide competitive
differentiation and contribute to the desired customer experience.

6. Information: Successful CRM requires a flow of customer information around the

organization and tight integration between operational and analytical systems. Having the
right information at the right time is fundamental to successful CRM strategies, providing
customer insight and allowing effective interaction across any channel. Unfortunately, most
enterprises' CRM information capabilities are poor - the result of numerous and fragmented
departments, initiatives, databases and systems. Enterprises that establish a business plan for
sourcing, managing and leveraging their customer information assets are more likely to
achieve their CRM goals and objectives and gain a competitive advantage.

62

 7. Technology: For most technologists, CRM is all about technology, CRM technologies are
an essential enabler for any modem CRM business strategy, but they are just one piece of the
puzzle. Gartner has a wealth of ongoing research into CRM technology issues and
"Technology Decisions Are Key to Enabling CRM Strategies" (DF-14-8082) looks at the key
decisions that enterprises have to take in three areas: CRM applications, architectural issues
and integration.
In many CRM projects, integration issues start as a relatively low priority, and
then rise in prominence (costs and time) as enterprises realize that true CRM requires
seamless customer-centric processes, supported by integrated technology across the
enterprise and its supply chain.

8 Matrics: The other seven building blocks depend on performance targets and metrics to
gauge their success, and enterprises must set measurable CRM objectives and monitor CRM
indicators to successfully turn customers into assets. Without performance management, a
CRM strategy and associated program is destined to fail. A framework for measuring and
enterprise's success with CRM by creating a hierarchy of performance metrics involves four
levels, namely: corporate, customer strategic, operational and process, and infrastructure
input metrics. These metrics have an internal and an external focus and link operations to
strategy and corporate financial benefits. Each enterprise will have a unique set of metrics
applicable to their situation.

63

To achieve the long-term value of CRM, enterprise must understand that it is a strategy

involving the whole business, and thus should be approached at an enterprise level. CRM
initiatives need a framework to ensure that programs are approached on a strategic, balanced and
integrated basis.

Thus, Gartner defines customer relationship management (CRM) as a business

strategy that maximizes profitability, revenue and customer satisfaction by:

Organizing around customer segments
Fostering behavior that satisfied customers
Implementing customer-centric processes.

64

 CRM STRATEGIES
Customer relationship management (CRM) strategies and the technologies that enable
them make it possible to figure out what customers want and the most profitable ways to
give it to them -important in an age when acquiring new customers is about five to 10
times the cost of retaining current ones. CRM strategies are based on the premise that
quick, accurate knowledge about customers empowers organizations to increase the value
of current customers, keep them longer and more effectively acquire new customers.
A CRM strategy takes direction and financial goals from the business strategy,
and revisits the marketing strategy to customize it as shown in Figure. It provides an overview of
how the enterprise will build valuable customer relationships and customer loyalty. The first
stage in developing the CRM strategy is to segment customers into categories, and to set
objectives and metrics for each segment.

The second stage is to assess the state of the customer base when viewed as an

asset. That can be achieved by plotting the strength and value of customer relationships along
two perspectives:
How much does the customer value the enterprise?
How much does the enterprise value the customer?

The result is a customer asset matrix as seen in Figure, which combines the

supplier's view of customer value segments with an estimate of the strength of the customer
relationship.

The third stage is to define the objectives to be met and the tactics to be used. The
customer strategy customizes the traditional marketing strategy for different target customer
segments, and thus supersedes it.

65

 CRM strategy as derived from business strategy:

Business Strategy
How do we deliver stakeholder value and build competitive advantage?

Marketing Strategy
CRMStrategy
How do we take advantage
How do we get closer to the

of market opportunities and

Customers to deliver value to
mitigate competitive threats?
them and create value for us?
Market definition and audit
Vision: customer experience
Vision: market positionCustomer definition, and behavior and requirementaudit
nalysis of strengths, weaknesses opportunities and threats Capability analysis
Target market segments
Target customer segment by value
market segment penetration, development, maintenance
Objective
and productivity
for each customer
asures: market share, brand equity and to market
acquisition,
penetration
development, retention efficiency
Based on product Measures:
life cycle satisfaction, loyalty, cost serve and employee satisfaction.
Based on the customer life cycle

Customer Asset Matrix:

Invest
Dam
ject
est to
to
age
Position
Protect
Win
Limitation

Coun

Inv

Win

Caref
ter
est to
the
ul
Competition
Build
Opportunity Management

Mana
Buil

Mana
Mana
ge for
d
ge for
ge for
Profitability Selectively Revenue
Revenue

Mana
Mana
Mana

Con
ge for
ge for
ge for
sider
Profitability Profitability Revenue
Divesting

CustomerLarge Share
Potential
of Wallet

(Value to
Some

Entprise)
Potential

Low

*
Transactional

Pro

Inv

HHighly Secure
Vulnerable Fragile

66

Secure

High
Strength of Relationship
Low
--------------------------------(Value to
Customer).
CREATING A CRM BUSINESS STRATEGY

Know your objectives The idea is to keep and acquire customers with the greatest

value potential. By establishing objectives, one can determine specific, quantifiable customer
acquisition, development and retention targets that meet corporate financial goals.

How this is best accomplished depends on the kind of organization and its

priorities. Of course, customer retention is important to just about all organizations. Business-tobusiness enterprises aiming to become a preferred supplier often give high priority to customer
development. Business-to-consumer enterprises with an eye to boosting market share
concentrate on customer acquisition. Government and non-profit organizations tend to care most
about customer satisfaction.

Know thyself- Start by answering these questions:

What are your enterprise's goals and imperatives?

What should be achieved with a CRM initiative?

What business units will be affected?

What's the condition of the IT infrastructure? What needs to be upgraded, integrated?

Transform your customer base into an asset - Be customer-centric. Focus objectives on

your customer life-cycle, which then mirror your product/service life-cycle. This means:
Analyze your customers. Look for ways that customer value is lost or unexploited. When
you've spotted where action is required, you can set metrics and monitor them.

67

 Jibe CRM and corporate strategies.' CRM strategy cannot stand alone; it must be derived
from corporate goals and imperatives, and it must be linked to other operational
strategies.
Keep it flexible. In a challenging, competitive environment unpredictably impacted by
discontinuous change, CRM strategy needs to be dynamic and timely, adapting
operational efforts and corporate direction to market conditions. Thus, successful CRM
strategy evolves in an iterative process that takes advantage of customer and operational
feedback to refine objectives, tactics and processes.

Build a repeatable, continuously improving process:. The goal is to efficiently

utilize all your organization's resources to present one friendly, consistent face to customers.
Customers should get the same information about your company from any channel-from website
to call centre to sales force to marketing brochure.

Companies that want to lock in customer loyalty and maximize profitability need

to employ four CRM tactics: 1) build a customer growth strategy upon a CRM foundation of
strategic intent and cost management; 2) avoid the CRM whipsaw effect; 3) don't buy into the
technology silver bullet; and 4) measure satisfaction with CRM. These tactics will ensure that
CRM programs can successfully adapt to the pending changes in the economy.

68

 BUILD A CUSTOMER GROWTH STRATEGY

Business must build top-line growth strategies upon the foundation of their CRM

programs by ensuring that strategic intent and cost management measures are institutionalized.
Many companies have not determined strategic intent or have not focused on developing clear
metrics to measure performance. Yet many have done some cost cutting within customer-facing
functions and lowered their cost-to serve just to reduce the overall cost of sales.

These cost-structure changes should be modified to invest in these fields of CRM

so that growth strategies gain some early wins, no matter what state the economy is in. As the
economy turns into recovery, the winners are likely to be those who have not only stabilized
their customer service and sales costs, but those who are improving the effectiveness of
customer retention and loyalty programs. Improved customer segmentation, customer
satisfaction, and service strategies should be tailored in downturns and expanded in upswings,
but need to remain long-term goals of any successful CRM program.

AVOID THE WHIPSAW EFFECT

Senior management commitment is critical to the success of any major corporate

initiative. CRM is certainly no exception. In fact according to CRM magazine/the A.T. Kearney
survey results, IT decision-makers ranked executive sponsorship as the most important factor
for maximizing the return on their CRM investments.

69

If CRM initiatives are not in the CEO's agenda, then investments in these

initiatives have a much lower probability of success. Additionally because CRM is a fundamental
shift in the way a company does business with its customers, rather than just a one-time ebusiness initiative, it required continuous leadership support over multiple years. This type of
long-term senior management support can only be achieved and maintained if a long-term
strategic plan is developed. The time frame also requires the strategic plan to have built-in
contingencies get caught in a CRM whipsaw: over investing in one year and then cutting to the
bone in the next.

The result is unrealized investments, squandered opportunities, and a loss of

employment for the CRM champion. The whipsaw may affect users as well. Employees whose
new customer-centric behaviour enable CRM success can get caught in the whipsaw if
communications about customer strategy and CRM processes are not clear or consistent
throughout changes in the business cycle.

DON'T BUY INTO THE TECHNOLOGY MAGIC BULLET

The CRM vendor landscape is changing rapidly. Placing all bets on a single vendor or

technology can prove disastrous. The unstable economy has caused a vendor shakeout. It has
reduced the number of CRM vendors, but also have enabled the strongest companies to survive
with the best-integrated offerings. Strong vendors, after acquiring or merging with smaller niche
vendors, still have to refine the resulting integrated offerings. Even so, research indicates
software functionality is not the prime factor in selecting a CRM vendor.

70

Financial viability and ROI remain the most important factors in selecting a CRM

vendor. Financial viability and ROI remain the most important factors in selecting a vendor, and
reflector the fact that the best-of-breed approach in recent years has left a number of companies
holding the bag of unsupported applications. The focus on vertical expertise has also been
increasing. Companies stung by the challenges and high costs of customizing standard
applications are demanding that the major vendors of the CRM world ensure that vertical
customizations are prebuilt into the application they install. Customers are focusing on
implementing the best vertical application available. This shift has also been pressuring vendors
that have not caught up with the virtualization wave or have poorly packaged and standardized
their industry experience within applications.

MEASURE SATISFACTION WITH CRM

Measuring CRM success has often been elusive, but it is possible to measure satisfaction

with CRM. Companies have often measured success either by ROI or by changes in customer
satisfaction to justify CRM benefits. Although capturing ROI and preventing CRM budget
expansion is important, the CRM magazine/A.T. Kearney research indicates that 60 percent of
companies claim their CRM initiatives met or exceeded expectations.

Of the rest 25 percent did not set expectations. So far the moment, there appears

to be more satisfaction with CRM projects than not. However, ROI generally measures the
internal return of a technology/process or organization improvement project.

71

 IN A NUTSHELL

CRM strategies offer companies a complete view of their customers across the entire
organization.
When implemented properly, a CRM strategy integrates all customer-facing and back
office applications with the same data. Companies reap large gains from these
efficiencies by offering better service and developing deeper relationships with
customers.
In order to achieve those gains, the implementation of the CRM strategy has to create
a 360 degree view of the customer. This means merging the information silos
maintained by each department into a single data repository accessible by all
departments.
Selection of technology is vital to a successful CRM implementation. Selecting a
package approach, rather than tying together existing individual
Implementation of a CRM strategy is by no means a project for the IT department
alone. Marketers must be directly involved in the process because they will
ultimately win or lose based on the quality of the outcome.
If implemented properly, a CRM strategy enables marketers to interact with
customers armed with useful information. Additionally, by analyzing existing
customer data, marketers have better tools to build future marketing campaigns,
increase sales and drive ROI.

72

FUTURE TRENDS IN CRM

It is not suddenly that the business managers have realized that the customer is supreme
or the need to render personalized service. However, it was not possible to address the
preferences of a massive group of widely dispersed individuals. Neither the tools nor the
technology were available.

The smart business managers did the next best thing, which was to conduct a

market research and classify the market into broad segments with different preferences. The
product managers would (and still do) then position their products catering broadly to these
segments.

The information systems have evolved tremendously over the last three decades

and so have the communication systems, as shown in Figure. While ERP, the management
mantra of the nineties, offered the means to optimize resource planning at the enterprise level
encompassing every area of the enterprise on a real time basis, there was still no means of
connecting to the customers. The customer had just too many locations.

The commercial penetration of Internet into the homes changed everything. It

provided the means to take the integrated enterprise information system to the customer's living
room. He could buy, sell or bank sitting there, while uniquely identifying himself.

73

 This has led to the evolution of CRM, which uses the Net to integrate the customer
contact points directly with the enterprise. It provides the means to interact with every
customer individually (thereby interacting with million or ever billions of customers).
The interactions over a period of time create a history that is available to the field sales/
support personnel at the touch of a button.

No. of respondents

100%

Rental

10

20

Brand value

25

50

Network coverage

10

20

10

50

100

All of those
Total

Respondents
60
50
40
Respondents
30
20
10
0
Rental

Brand value

Network coverage

INTERPRETATION:
74

All of those

In my survey I found that 50% of subscribers prefer BSNL due to its brand

value and 20% of subscribers prefer it because reasonable rental charges .20% of
subscribers for network coverage, only 10% of subscribers supports all of these.

75

 Consistency level of customers towards BSNL

No. of respondents

100%

1 year

20

40

2 years

10

20

20

40

50

100

More than 3years

Total

Respondents
40
30
Respondents

20
10
0
1 year

2 yeat

more than 3years

INTERPRETATION:

In this survey I came to know that, 40% of subscribers were stick to this since 3

years. This shows their loyalty toward BSNL.due to introduction of new offers 40 % of
subscribers were using from 1 year and only 20% were using from 2 years.

76

 Analysis on Type of connection used by the customers.

No. of respondents

100%

Prepaid

35

70

Postpaid

15

30

50

100

total

Respondents
postpaid
Respondents
prepaid

10

20

30

40

50

60

70

INTERPRETATION;
I found that 70% of the subscribers were interested i prepaid connection and only 30% of

were prefer postpaid connection.

77

Analysis on customer's monthly expenses on mobiles

No. of respondents

100%

10

10

20

351/-to 500/-

30

60

10

50

100

Less than 150/

151/-to 350/Above 500/ total

Respondents
Above 500/-

351/-to 500/-

Respondents

151/-to 350/-

Lesstan 150/0

10

20

30

40

50

60

70

INTERPRETATION:
In my survey I found that the monthly expenses of BSNL subscribers were as follows:

60% were in between Rs- 351/-to 500/-,40% were in between Rs 151/- to 350/-..

78

 Analysis of receiving remainders regularly to pay bill/top up

No. of respondents

100%

Yes

37

74

No

13

26

50

100

Total

Respondents
80
70
60
50

Respondents

40
30
20
10
0
No

Yes

INTERPRETATION:

In my survey I found that 74% of subscriber told that they receive remainders

regularly and only 26% of subscribers told that they are not receiving any remainders.

79

 Analysis on problem faced by the customers in their connection

No. of respondents

100%

Signal problem

30

60

Problems with

15

30

10

50

100

recharge coupons'

Unwanted
activation
Total

Respondents
60
50
40
30
20
10
0

Respondents

INTERPRETATION:

In my survey I found that 60% subscribers were facing signal problem,30% of

subscribers were facing problem with their recharge coupons,their connection and 10% of
subscribers were facing problems like unwanted activation.

80

 Analysis on problem rectification in BSNL connection

No. of respondents

100%

00

35

70

10

10

20

50

100

Immediately
1 day

2 days

More than 2 days

Total

Respondents
70
60
50
40

Respondents

30
20
10
0
Immediately

1 day

2 days

more than 2 days

INTERPRETATION:

In my survey I found that 70% of subscribers told that 1 day takes to rectify

problem. And 10% & 20% of subscribers says that it takes 2 days and more than 2days.

81

Analysis on receiving promotional calls from BSNL

No. of respondents

100%

Yes

45

90

No

10

50

100

Total

Respondents
100
80
Respondents

60
40
20
0
yes

no

INTERPRETATION;

In my survey I came to know that 90% of subscribers were receiving

promotional calls from BSNL.And only 10% were not receiving any calls from
BSNL.

82

Analysis on information provided by the BSNL 'CUSTOMER SERVICE

CENTER' representatives to the customer that they are providing required

information
or not.

No. of respondents

100%

Yes

40

80

No

10

20

50

100

Total

Respondents
80
60
Respondents
40
20
0
yes
no

INTERPRETATION:
I ask this question to know that the CSC representatives provide the information they

required or not.

80% of subscribers says Yes. 20% of subscribers says No.

83

 Analysis on satisfaction of customers with BSNL present offerings

No of respondents
100%
Satisfi
ed
Unsati
sfied
Total

30

60

20

40

50

100

Respondents
60
50
40

Respondents

30
20
10
0
Satisfied
Unsatisfied

INTERPRETATION:

I found that 60% of subscribers were satisfied with BSNL offerings. Only 40% were

unsatisfied.

84

Comparative analysis on advertisement promotion and punch lines of various

telecom
companies

No. of respondents

100%

40

80

Reliance- Karlo
dhuniya mutti mein

Idea-An idea can

change life

10

50

100

BSNL-connecting
India
Airtel- Barriers
break when people talk,

total

Respondents
80
70
60
50
40
30
20
10
0

Respondents

INTERPRETATION:

Most of the subscribers like Airtel advertisement (80%) only 2% of subscribers

like BSNL advertisement. 8% and 10% of subscribers like Reliance & Idea adds.

85

Analysis on the rate of the overall quality of customers relationship with BSNL,

considering all of their experiences with them

No. of respondents

100%

Excellent

20

40

Good

30

60

Fair

00

Poor

00

50

100

Total

Respondents
60
50
40
Respondents

30
20
10
0
Excellent

Good

Fair

Poor

INTERPRETATION:
In my survey I found that the overall relationship between (60%) subscribers and

BSNL were good. And excellent were in between 40% of subscribers.

86

FINDINGS

Customers are basically satisfied with present offerings of BSNL.

In my survey I found that most of the customer were facing some problems.
It was observed that most of the customers expressed their unhappiness because they are
facing problems like signal problem and (particularly postpaid) they were wrongly charged
or they never received bills on time.
Few subscribers were very particular about rentals.
Through my survey, I came to know that most of the customers are satisfied with BSNL
plans and toppings.
Through my survey I observed that most of the customers monthly expense was in between
Rs/- 350/-and 500/ I observed that most of the customers are prepaid connection holders.

I observed that most of the customers like Airtel advertisement and punch-line.
Through my survey I found that BSNL takes at least 2-3 days to rectify problems.
BSNL 'CSC representatives provide the information to all the subscribers.
It is observed that the relationship between the subscribers and the BSNL was good.

87

 SUGGESTIONS

To retain existing customers BSNL has to offer better or improved schemes from time to time
to compete with the competitors. This would automatically attract new customers.

BSNL should continue to offer the best toppings to stay at the top.

There should be no compromise in quality and the network facility.

BSNL has to spend more on advertisement to attract customers.

To ensure better customer satisfaction and maintain higher level of Customer relationship
management, BSNL has to strengthen its network coverage.

To attract customers of different age groups it has to introduce new offers totally
different from others.

88

 BIBLIOGRAPHY

TEXT BOOK

AUTHOR

PRINCIPLES OF MARKETING

PHILIP KOTLER

MARKETING RESEARCH

D.D

SHARMA

CUSTOMER RALATIONSHIP

H.PEER
MANAGEMENT

WEBSITES:

www.bsnl.com

www.apbsnl.co.in

www.google.com

MOHAMMED

89

 QUESTIONNAIRE

1. Name

2. Age

3. Mobile No:

4. Occupation
5. Why do you prefer BSNL?

value

a)Rental b)brand
c)network coverage d)all

of these

6.

From how long

you are using the BSNL connection?

a) 1 year b)2years

c)more than 3years

7.

Which type of

connection you are using ?

a)prepaid

b)postpaid

8.

How much

is your monthly expenses on your mobiles?

a)less than 150/-b) 150-350

c)350-500

)
d)above 500

9.

Do you

receive remainders regularly to pay bill/top up

a)yes

b)no

90

 10.

Which type of problem you are facing in your connection?

a)signal problem
c)unwanted

b)recharge coupons
activation (
)

91

 11 .In case of any problem, how long does it take to rectify it?

a) immediately b)lday

c)2days d)more than 2days

12. Are you regularly receiving promotional calls from BSNL ?

a)Yes b)No

l3.Does BSNL 'CUSTOMER SERVICE CENTER' representatives

provides the information you required ?

14.How satisfied are you

a) Yes b)No

with the clarity of information they provided ?

a)excellent

c)fair d)poor

b)good

15. Are you satisfied

with BSNL present offerings?

a) satisfied b)unsatisfied
16. Which company advertisement promotion and punch lines you like
the most
a) BSNL -Best hai mere liye
b) Airtel-Barriers break when people talk, Express yourself
c) Reliance-karlo dhuniya mutti mei
d) Idea- An idea can change your life
92

17. 0verall satisfaction on

BSNL?

(
a) Satisfied b) unsatisfied

93

18. How would you rate the overall quality of your relationship BSNL, considering

all of your experiences with them? Would you say it is.

a)excellent b)good c)fair d)poor

19. Would you like to give your suggestions to improve the satisfaction level of the

customers?

a)yes b)no

If yes please specify ___________________________________________

94