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PROJECT REPORT

“TO STUDY CONSUMER NEED AND


IDENTIFY BOTTLENECKS IN PILOT PROJECT
OF
BHARTI AIRTEL LTD.”

Submitted to: Submitted by:


Mr. Vishal Negi Himanshu Kumar
Head DST Gurpreet Singh
Chandigarh
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ACKNOWLEDGMENT

“Success of a person depends upon the steps he take”

This humble endeavor bears the imprint of many persons who were in
one way or the other helpful in the completion of our report. We would like
to take this opportunity to present our vote of thanks to our guide who acted
as lighting pillar to enlighten our way through out this project. This project
would not have been possible without the kind assistance and guidance of
many people who indeed were helpful, cooperative and kind during the
entire course of our project.

We have tried our best “TO STUDY CONSUMER NEED AND


IDENTIFY BOTTLENECKS IN PILOT PROJECT OF BHARTI AIRTEL
LTD.” In this research we are highly grateful to our project guide MR.
VISHAL NEGI (Head DST, Chandigarh) for his support and encouragement
throughout the project. Besides this we are also thankful to all the
respondents who have cooperated with us in answering our queries and
filling the questionnaire.

This project has been a great source of learning and experience.

Submitted By
Himanshu Kumar
Gurpreet Singh
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TABLE OF CONTENTS

1. Introduction 4

2. Company Profile - Bharti Airtel 5

3. Study objective 7

4. Research methodology 8

5. About Pilot Project 9

6. Basics of Test Marketing 11

7. About Sector 51 12

8. Various activities at Sector 51 13

9. Analysis and Findings 14

10. Problems Areas 19

11. Suggestions and Recommendations 20

12. Conclusion 21

13. Annexure
a) Questionnaire for Consumers 22
b) Questionnaire for Sales Team 25
c) Special Offer Pamphlet 27
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INTRODUCTION

The project “TO STUDY CONSUMER NEED AND IDENTIFY


BOTTLENECKS IN PILOT PROJECT OF BHARTI AIRTEL LTD.” holds
great significance for the company Bharti Airtel Ltd. for the reasons
manifold. Considering the fact that though the postpaid market is less at
numbers, it forms the considerable portion of the revenue generated by the
company. Postpaid customers are the constant source of revenue for the
company.
Stiff competition in the telecom sector has urged the companies to become
proactive in order to cope up with the changes in the dynamic environment.
This project can be considered as a step of Bharti Airtel Ltd. to understand
the variables of dynamic environment leading to low sale (postpaid) in
Sector-51 during the pilot project in special offer was given to the society
residents and identification of measures to maximize sales.
The broader objective of sales maximization gave lead to the objectives of
consumer need study and plan comparison which eventually would help in
bringing in a buffet of plans & better productivity and hence lead to sales
maximization.
To test the new schemes for societies Bharti Airtel Ltd. selected sector 51 as
a test market.
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Bharti Airtel
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises.
The Bharti Group, has a diverse business portfolio and has created global
brands in the telecommunication sector. Bharti has recently forayed into
retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the
cash & carry business. It has successfully launched an international venture
with EL Rothschild Group to export fresh agri products exclusively to
markets in Europe and USA and has launched Bharti AXA Life Insurance
Company Ltd under a joint venture with AXA, world leader in financial
protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, India’s largest integrated
and the first private telecom services provider with a footprint in all the 23
telecom circles. Bharti Airtel since its inception has been at the forefront of
technology and has steered the course of the telecom sector in the country
with its world class products and services. The businesses at Bharti Airtel
have been structured into three individual strategic business units (SBU’s) -
Mobile Services, Airtel Telemedia Services & Enterprise Services. The
mobile business provides mobile & fixed wireless services using GSM
technology across 23 telecom circles while the Airtel Telemedia Services
business offers broadband & telephone services in 94 cities. The Enterprise
services provide end-to-end telecom solutions to corporate customers and
national & international long distance services to carriers. All these services
are provided under the Airtel brand.

Bharti Airtel Limited, a group company of Bharti Enterprises, is India’s


leading integrated telecom services provider with an aggregate of 64.26
million customers as of end of March 2008, consisting of 61.98 million
mobile customers. Bharti Airtel has been rated among the best performing
companies in the world in the Business Week IT 100 list 2007.

The company is a part of Bharti Enterprises, and is India's leading provider


of telecommunications services. The businesses at Bharti Airtel have been
structured into three individual strategic business units (SBU’s) - mobile
services, broadband & telephone services (B&T) & enterprise services. The
mobile services group provides GSM mobile services across India in 23
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telecom circles, while the B&T business group provides broadband &
telephone services in 90 cities. The Enterprise services group has two sub-
units - carriers (long distance services) and services to corporates. All these
services are provided under the Airtel brand.

Overview

Creating value for our customers, employees, investors, partners, vendors


and the society at large lies at the root of our fundamental business strategy.
Our core principles of trust and transparency have come a long way in
helping us develop and nurture long-term relationships with our key
stakeholders. Our performance exudes from our belief in and commitment to
the telecom sector; and translates into creating innovative exciting
opportunities for one and all.

Our Vision & promise

By 2010 Airtel will be the most admired brand in India:

 Loved by more customers


 Targeted by top talent
 Benchmarked by more businesses
We at Airtel always think in fresh and innovative ways about the needs
of our customers and how we want them to feel. We deliver what we
promise and go out of our way to delight the customer with a little bit more.
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STUDY OBJECTIVES

The following are study objectives to conduct this research: -

1. To study the consumer needs of Sector-51

2. To find out the bottlenecks in pilot project of Bharti Airtel Limited.

3. To recommend measures to increase the sales of post paid connection.


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RESEARCH METHODOLOGY

The survey research method was the basic research design. We studied the
subject from two aspects: first, from the view point of the sales team and
second, from that of the customer.
The sales team was interviewed inside VandY and consumers were
interviewed in their homes in Sector-51. The personal interview lasted
between 10 to 15 minutes.

Sample Design

A survey of approximately 50 individuals located in various societies


throughout the Sector-51provided the database for the study. 5 members of
sales team involved in this pilot project for Sector-51 was also interviewed.
Eligible respondents were adults over the age of 18. Within each household
an effort was made to interview the individual who was most familiar with
the mobile phone connections.

Data Source

The data related to the proposal/plan offered and implementation process


was collected from the sales department at Bharti Airtel Limited.
Data pertaining to the questionnaire was gathered from the residents of
Sector-51 societies.

Data Collection Method

Data was collected using the questionnaire which was framed on the basis of
the study objectives & in confirmation with the Sales Department of Bharti-
Airtel Ltd. Primary data was collected for the research. The data was
collected through self-administered questionnaires by personal interaction
with the respondents, so that there will be no problem in understanding and
answering the questions by the respondents.
Questionnaires for the sales team and customers are attached at the end of
the research report.
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Data Analysis

Standard editing and coding procedures was utilized. The data analysis was
done with the help of various graphical tools, e.g. Bar graphs, Pie charts by
using SPSS software.
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PILOT PROJECT OF BHARTI AIRTEL


LIMITED FOR SECTOR-51 SOCIETIES:

Alex/DST team did a pilot project where they tried to source sales from
residential societies of sectors 51.
These societies were treated as SME accounts, acquisitions from these
accounts were on a self-paid basis.

Plans offered to the consumers during this pilot project:

Acquisition cost structure:


Activation Fee: NIL.
Security Deposit: Rs 250 adjustable in the 4th bill (see details below)

Plans on offer:
1. Gupshup plan
2. Bada gupshup plan
3. Airtel Corp value plan
4. Airtel 325 plan
5. Airtel Call at 1 plan

Adjustable Security Deposit:


1. SD of Rs. 250 will be taken with all new connections.
2. SD will be refunded on request to the subscriber, after payment of first
three bills.
3. This will reflect as "Deposit payment Rs. 250" in the 4th bill.

Implementation of the pilot project:

Sourcing sales and activations:


1. Sales were planned to be sourced at the societies via canopy activity.
2. Sales were to be punched in at Chandigarh RO.
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3. TEF was required clearly mention "Society project" so that correct


provisioning can be done.
4. RCC was to provision AF waiver and SD (adj) component.

On ground visibility:
1. Canopies with Field Officer Sales (FOS) in Airtel T-Shirts.
2. Special offer flyers for 51.
3. Token gifts for new customers.
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Basics of Test marketing for any product:


1. How many test cities or places? -Most tests use between two and six
cities and places. The greater the maximum possible loss, the greater the
number of contending marketing strategies, the greater the regional
differences, and the greater the chance of test-market interference by
competitors, the greater the number of places that should be used.

2. Which places? - Each company must develop test-place selection criteria.


One company looks for test place that have diversified industry, good media
coverage, cooperative chain stores, average competitive activity, and no
evidence of being over tested.

3. Length of test? - Market tests last anywhere from a few months to a year.
The longer the product's averages repurchase period, the longer the test
period necessary to observe repeat-purchase rates. This period should be cut
down if competitors are rushing to the market.

4. What information? - Warehouse shipment data will show gross


inventory buying but will not indicate weekly sales at the retail level. Store
audits will show retail sales and competitors' market shares but will not
reveal buyer characteristics. Consumer panels will indicate which people are
buying which brands and their loyalty and switching rates. Buyer surveys
will yield in-depth information about consumer attitudes, usage, and
satisfaction.

5. What action to take? - If the test markets show high trial and repurchase
rates, the product should be launched nationally. If the test markets show a
high trial rate and a low repurchase rate, customers are not satisfied and the
product should be redesigned or dropped. If the test markets show a low trial
rate and a high repurchase rate, the product is satisfying but more people
have to try it. This means increasing advertising and sales promotion. If trial
and repurchase rates are both low, the product should be abandoned. Test
marketing permits testing the impact of alternative marketing plans.
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About Sector 51 Chandigarh:


Sector 51 is one of the newly developed sector of Chandigarh as it came into
existence in year 2004 only.

The sector comprises of houses in the form of flats only. There are around
3000 flats in the sector, it has flats of CHB and various housing society.

List of societies covered:


 CHB Enclave
 CCEE Co-op
 New Light Co-op
 PSIEC Employee Co-op
 CGWBE Co-op
 C ESIEC Employee Co-op
 Industrialist Co-op
 Defense Scientist (TBLR) Co-op
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Summery of activities took place in sector 51 for the


promotion of above plan:
1) Introduction of proposal to society president: A proposal was
presented before the Sector-51 President Mr. S.S.Bhardwaj, regarding
various plans of Airtel.

2) Promotion through Canopy: A promotional campaign was launched


by Mr. Vishal Negi and his sales team, to make people aware about
the new plans. It was first started on Sundays and lead to the
awareness among society residents and then promotion through
canopy was done regularly in the early morning and evening hours.

3) Distribution of handbills in newspaper: Handbills were circulated to


the residence of Sector 51, as a part of promotional strategy.

4) Seminars: A seminar was organized on the night of holi by the sales


team of Airtel headed by Mr. Vishal Singh Negi

5) Door to door campaign by the sales team: Airtel kicked of their door
to door campaign in the sector with the sales team of around 7-8
people. Door-to-door selling was usually conducted in the early
morning hours (5 a.m. to 9 a.m.), evening hours ( 5 p.m. to 8 p.m.)
and full day on sunday, when the majority of people are at home.
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ANALYSIS & FINDINGS:

1) The survey showed that there the average monthly expense of 80% of
the respondent is less than 500.
Monthly expenditure

40
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No of respondants

30
25
20 Series1
15
10
5
0
>500 500-1000 1000-1500 1500 more
Amount

• Market is not a high source of revenue


• It also concludes that people are not using VAS.

2) Only 12% of the respondents are using post paid mobile connections.

prepaid, 6,
12%

prepaid
prepaid

prepaid, 44,
88%

• Small market for Postpaid mobile


• Effect are required to churn consumer from Prepaid to Postpaid
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3) The survey showed that only 62% of the people are using mobile
phones with GSM technology and rest are CDMA.

CDMA, 19, 38%


GSM
CDMA
GSM, 31, 62%

• CDMA platform is also popular giving rise to high competition

4) The survey showed that most of the respondents are using mobile
phones from last 1 year.

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20
No. of Respondant

15 Series1

10

0
<6 months 6-12months 12-24months >24 months
Time period

• People are quite happy with current service provider


• People are concern about the change in no. with the service provider.
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• Lot of effort is required to attract customer


5) The survey showed that attribute likes Brand image and shopkeeper
suggestion doesn’t really matter for the customers

6) Local call rates and Network coverage are most import attributes for
the customers.

7) STD call rates and the roaming charges come next in the list of
preference.

• Customer require low STD and Roaming Charges

• Special discount can be offered to the consumer on STD charges to


make scheme attracted.

8) Nearly 52% of the respondents gave first preference to discount on


local and STD calls and 30 % express their willingness to SMS packs.

2%
2% SMS pack

4%
STD/Local discount
10%
GPRS

. Callertone/Hellotone
52%
30%
Ringtone Downloads

Updates (News, Business,


Sports Alerts)

• STD and SMS packs are top most preferred VAS

• Customers can be churn by offering this

9) Survey showed that 20% of the people are willing to change there
mobile phones in next 3 months.
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10) The survey shows that 46% of the people came to know about the
proposed plan through canopy, followed by newspaper handbills (28%).

10%
2%
Canopy
14%
46% Newspapers handbills
Sales Representative
Banners/Hoardings
Seminar (Holi Function)
28%

• Promotion through canopy was more effective


• Newspaper handbills were also effective in promoting the scheme
• Response for sales team was low

11) Only 50% of the people were aware of CUG feature of the rest 30 %
were partially aware, 20 % were totally unaware about the service.

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Know a fair amount
12 Know very well

10 Never heard of

8 Know a little bit


Heard a little only Series1
6

0
Never heard of Heard a little Know a little bit Know a fair Know very well
only amount

• More awareness regarding CUG is required.


• People are currently not using CUG in mobile.
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12) Most of them claim them claim their usage consists of talking with
friends (34%), family (20%), office (18%), society (16%) and others (12%).

Others
12%
Friends
34% Friends
Office
18% Family
Society
Office
Others
Society
16% Family
20%

• Usage within society is very low


• Usage within family is also less than usage with friends
• CUG is not attractive to this market.

13) Survey shows that change in mobile no. and similar tariffs prevent
them from changing mobile service.

• Company has nothing new to offer


• People are reluctant to change their mobile phone
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Problem areas found on the base of survey and


response of the sales team:

1) Highly competitive market: The mobile market of sector 51 is highly


competitive with presence of all big players like Airtel, Tata,
Reliance, Ping, Vodaphone, Spice and BSNL.

2) Change of mobile number: One of the reasons behind lukewarm


response towards the scheme was that this scheme was only available
to the new customers, so people were not willing to change their
number. Due to this the customers who availed this special offer will
only be able to use 500 free minutes of CUG with only a limited
number of residents (those who availed this scheme, new customers)
in the society.

3) The success of this facilty depends upon the penetration, as more the
number of consumers avail this facility, more they could have been
able to use it. But their family members, friends and neighbours who
already have Airtel mobile connection were not able avail it on
existing numbers and thus resulting in less penetration of this special
offer.

4) Presence of good schemes: Companies like Ping and Spice are already
offering good and cheap schemes to the customers.

5) Presence of other alternatives: The basic service provider like connect


are already providing free inter calling between the various societies
of sector 51.

6) Internal conflict between the societies: The features like CUG are not
effective in the present circumstances of sector 51, where there are lot
conflicts between the various associations and residence of the
societies.

7) Less time for the project: Usually this kind of project takes time to
produce positive results, customers usually takes time to response to
new schemes.
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8) Timing: The time which was chosen by the company to promote the
scheme was not appropriate; company floated the scheme near Holi
and Exam holidays, because of this it was difficult tap the mass
market.

9) Over attractiveness of market: Though the market of sector 51 appears


to be very attractive and revenue generating but it not so, the monthly
expenditure of mobile is less than Rs. 500.

10) Market (Shopping Centre) in Sector-51 is small. Thus the people


usually go for routine shopping in the nearby sector markets and they
don’t need CUG for ordering goods from shopkeepers in Sector-51
market.

11) In the society their was jammer problem as it is near to burail jail. So
it is not possible for any mobile service provider to give service in this
society as the signal becomes very weak.
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SUGGESTIONS & RECOMMENDATIONS

1) Airtel is more expensive than other competitors; consumer need


suggest that they require a value for money product or services. So
company must offer plans in such a way that can attract mass market
along with high end customers.

2) The offered plans must be comparable with the other competitive


offering.

3) The plans must be made more practical and attractive by offering free
SMS besides CUG.

4) The scheme must cover existing customers along with the new ones,
so that they can explore the benefit of CUG in a better way. This will
also give company a promotion through word of mouth.

5) The proposed plans must be promoted through road shows along with
canopy and door to door campaign as it is more effective( survey
analysis)

6) The special scheme must last for 2-3 months, as it is a test market,
because consumer takes time in reacting towards new schemes or
products.

7) For a test market time of launch is very important “time chosen by


company in this case was not appropriate as it was the vacation and
festival time”.

8) The market of sector 51 is highly penetrated and highly competitive


so it was somewhat inappropriate to choose such a place for a Pilot
Project.

9) The company must take necessary steps to overcome the negative


publicity it received for its landline service.

10) The product must be promoted on the following parameters:


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• A family pack – As there was 500 free minutes of CUG, the


consumers can also use these calling minutes for calling their family
members having Airtel mobile connection.
• A inter society pack – The 500 free minutes of CUG could also be
used for calling friends, neighbours, for business purpose within the
society.
So from the very beginning these things must be promoted.
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CONCLUSION

In a market with the world’s lowest mobile tariffs - Pricing has been the sole
selling point for cellular operators. But for long-term gains, distinct brand
differentiation strategies will have to kick in - very soon as the price
proposition is short-lived and is easily countered. “Rate is not a sustainable
competitive advantage. If one player plays the price card, others simply
follow suit, negating the uniqueness.”
The pilot project of Sector-51 will help in understanding the consumer
behaviour and satisfying their needs with customized communication
solutions which will be helpful in creating consumer loyalty and result in
increasing postpaid sales.
But due care must also be given to the existing customers which would have
resulted in “Word of Mouth” marketing and also CUG facility could have
been more meaningful for the resident of these societies. As more the
number of users of CUG facility like within family, friends, neighbour’s,
more it would be beneficial for residents and thus resuting in increase of
postpaid sales of Airtel and consumer satisfaction.

Ethical issues involved


• Through out the project our priority remained to protect the
confidentiality of the subjects as the research involved gathering
confidential professional information.
• Informed consent of the subjects was obtained.
• We ensured maximum possible accuracy by maintaining objectivity.
• Under no conditions the findings of the research were misrepresented
or manipulated.

Problems and Limitations


1) Time constraints: The proposed time frame of 15 days for the study
prevents us from carrying out in depth analysis of the strategies of the
companies and widening the area under study.
2) Financial constraints: Convenience sampling procedure will be used
due to lack of resources.
3) Reluctance on the behalf of the sales team in divulging professional
information.
4) Unwillingness on the behalf of customers to provide 100% accurate
information.
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ANNEXURE

1) Questionnaire for residents of Sector-51:

Customer Insight Project


For office use only
Code:
Dear Sir/Madam,
We are doing a research on consumer behavioral patterns. In same regards, we would like to
know a few details that may help us serve all telecom customers better. Thank you.
Name: ……………………………………………
Contact No: ……………………………..............
1) Age: a) upto 18yrs b) 18yrs to 30yrs c) 30yrs to 45yrs d) 45yrs to 60yrs e) Above
60yrs
2) What is your monthly income?
a) Less than Rs 10000 b) Rs 10,000 to Rs 20,000 c) Rs 20,000 to Rs 30,000
c) Rs 30,000 to Rs 40,000 e) More than Rs 40,000
3) How many members in your family are using mobile phone? ………………………………
4) Who is your current mobile phone service provider?
a) Airtel b) Vodaphone c) Spice d) BSNL
e) Tata Indicom f) Reliance g) others……………………………

5) Which connection are you using?


1. Prepaid O 2. Postpaid O
Technology: 1 GSM 2 CDMA
6) Your approximate mobile phone expenses (per month):
1. Less than Rs 500 3. Rs 1,000 to Rs 1,500
2. Rs 500 to Rs 1,000 4. More than Rs 1,500
7) How long have you been using your current connection?
1) Less than 6 months O 2) 6 months to 1 year O
3) 1 year to 3 year O 4) More than 3 years O
8) You are requested to tick only one of the given five responses according to your
perception about the importance level of the various parameters while choosing a post paid
mobile connection for yourself? (Rate your response out of five choices given below)
Not important Rarely Neutral Important Very
Attribute at all consider Important
a. Brand image
b. Local Call Rates
c. Network coverage
d. Customer care services
e. Suggestion of the
shopkeeper/sales people
f. Roaming Charges
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g. STD call rates


9) Please rank the following Value Added Service (VAS) according to your preference
(1 – Most preferred and 6 – Least preferred).
Value Added Services Rank (in order of preference)
1. STD/Local Discount Packs
2. SMS Pack
3. GPRS
4. Callertone/Hellotone
5. Ringtone Downloads
6. Updates (News, Business, Sports
Alerts)

10) How you rate following mobile service providers among the given attributes based on
your perception. (1 – Most preferred and 6 – Least preferred).
Tata
Attribute BSNL Airtel Spice Vodaphone Reliance Indicom
a. Network Performance
b. Billing Services
c. Customer care services
d. Call Rates

11) How did you come to know about your Special offer by Airtel for Sector-51 residents?
(Tick more than one if applicable)
a) Stalls/Canopy b) Newspaper Advertisement c) Sales Representative d)
Banners/Hoardings e) Colleague/Friend f) Seminar (Holi Function) g)
Others………………………………..
12) Are you aware of CUG (Calling Under Group) Feature (VAS)?

Never heard know a know a know


heard of of only little bit fair amount very well
13) Your current usage consists of? Rank the following call groups according to their level
of usage (1 – Most of the time, 2 – Very often, 3 - Often and 4 – Sometimes).
a) Family circle
b) Within Society
c) Official circle
d) Friends circle
e) Others………………..
14) Are you using any special service of your current mobile service provider?
a) Yes b) No
If yes, then please tell us about the service…………………………………………………………
……………………………………………………………………………………………………….
15) Problems in service you are facing from your current mobile service provider (Tick
more than one if applicable):
a) Network performance b) Billing c) Customer Care d) Recharge
e) Accessibility f) Others…………………………………………………………..
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16) Which of the following prevents you from changing your current service provider?
(Tick more than one if applicable)
a) Change in current mobile no. b) Nothing special in service c) Similar tariffs
d) Lack of awareness (about new schemes) e) Others………………………………
17) Have you availed the Special Scheme for Sector-51 residents by Airtel:
a) Yes b) No
………………………………………………………………………………….................................
………………………………………………………………………………………………………
….........................................................................................................................................................
.............................................................................................................................................................
18) Any specific need/suggestions/problems………………...........................................................
………………………………………………………………………………………………………
….........................................................................................................................................................
.............................................................................................................................................................
.............................................................................................................................................................
.............................................................................................................................................................
.............................................................................................................................................................

Thanks for your valuable inputs and suggestions


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2) Questionnaire for Sales Team:

Questions to the Sales Team

Name:
Designation:

1) What was your working hour’s in Sector - 51?


………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………………….
……………………………………………………………………………………………………….
2) What was your way of working?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………………….
3) How was customer’s response for this plan?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………….................................................
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4) Where do you find difficulty in selling this special plan?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
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5) What was the main reservation of the customer?
………………………………………………………………………………………………………
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………………………………………………………………………………………………………
………………………………………………………………………………………………………
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6) What are the bottlenecks in your view?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
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7) Do you think infrastructure provided to you were sufficient?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
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………………………………………………………………………………………………………
……………………………………………………………………………………………………….
8) Any suggestion from your side: ………………………………………………………………….
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………………….

Thanks for your valuable inputs and suggestions


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