Preface.

What is learned when combined with what is practiced, makes a student realise the ultimate goals of education. Theoretical concepts do not always suffice the needs of modern education. Its a blend of both practical and theoretical aspects, which is in need in todays competitive environment. As with any other professional course, students of MBA, are also expected to have a certain practical knowhow of the concepts learned by them theoretically. To reinforce the theoretical base in practical problems, the students are required to undertake a winter internship for two months in a company of repute, as par requirements of the Degree of Master of Business Administration (Full Time) of Dibrugarh University. I was assigned to undertake the project titled A Study on Establishing an Alternate Marketing Channel and making it countable for Aircel prospective, in Guwahati city for 2 months (January-february,2012). As this study was intended to help the management in taking decision, hence care has been taken to present the information in the most authentic manner, such that it represents the actual situation, but still some unfortunate mistakes may have occurred, for which I sincerely apologise.

Acknowledgement

No job or task can be completed without the co-operation and support of people around us. I being no exception had to seek the help of others to make this project successful. First of all I would like to thank the Management at Dishnet Wireless Ltd. for giving me the opportunity to do my 2 month winter internship project training in their esteemed organization. I would like to express my gratitude to Mr Bhaskar Jyoti Bezbaruah, Device Head Assam, who has been provided me with guidance, inspiration, perspective and stimulating discussion, throughout the writing of this report. I am grateful for his constant review and excellent suggestions throughout the project. I would like to put my sincere thanks to Mr Rudrajeet Lashkar, Asst. Manager, Marketing Communication, for his sincere help and support in the form of guidance and information required during the study. My sincere thanks goes to Dr Arup Goswami, Faculty, CMSDU, for his guidance, support and inspiration during the project. I am thankful to all the employees of Dishnet Wireless Ltd. for their timely help encouragement, support, valuable comments, suggestions and many innovative ideas in carrying out these projects. It is my proud privilege and pleasure to have done my winter internship at Dishnet Wireless Ltd., Guwahati.

Executive summary
Project Title:
A Study on Establishing an Alternate Marketing Channel and making it countable for Aircel prospective.

Organisation: Dishnet Wireless Limited (Aircel), Guwahati.

Organisational Guide: Mr Bhaskar Jyoti Bezbaruah, Device HeadAssam, Dishnet

Wireless Limited

Academic Guide: Dr. Arup Goswami, Faculty member, CMS-DU

Duration of the Project: 1st January to 29th February, 2006

Objective of the Study:

The project is based on the establishment of alternate marketing channel of Aircel in the form of Cyber caf in Guwahati. Since telecom companies have less ventured into making cyber caf, a retail outlet, therefore this is quite an unexplored territory. Cyber caf will provide a better reach to the target market and will significantly bring down the advertisement cost. The main objectives of the project are as follows: Update the database of the already active cyber cafes dealing with Aircel products. Communicate with other cyber cafes and enquire about the business prospects.

Research methodology
This research is an exploratory research as the study is based on the securing information about the various aspects of the alternate marketing channel.

Sample size
The sample consisted of 24 cyber caf which where branded earlier and were already dealing with Aircel products. In the second phase 53 cyber caf were approached to note their interest

in dealing with Aircel products. These 53 sample were chosen on the basis of cluster sampling, in which some major areas of Guwahati were selected for sampling

Analysis Technique
The research is a qualitative research and therefore interpretation of data is of utmost importance. Various graphical tools such as bar diagram as well as self-interpretation has been done to evaluate the data

Findings.
Because of the increase of internet penetration, cyber caf business is on the downward slide. The owners of cyber caf is seeking new ways to diversify their business and therefore this project of giving the cyber caf owners a chance to retail Aircel products is feasible to a great extent. 1. About 42% of the cyber caf that were branded stills deals with the Aircel products but 58 % have left retailing Aircel products. 2. Most of the retailers of Aircel were found dealing with various other competitor brands. In all 8 cyber caf are dealing with other telecom products. 3. 78% of the retailers are satisfied with the commission provided for retailing different products and also with the demand of the products and also with the demand of the products. 4. Branding of Aircel products was visible in majority of the cyber cafes (18 out of 24). Most of the branding was that of PI plans whereas dongle has also a considerable share of branding. 5. 15 respondents said that the sales person visit their outlet about 2 to 3 times, 3 respondents said 3-4 times and 5 respondents said 1-2 times. Some of the caf owners make personal contact with the sales person to replenish their stock. 6. It can be seen that 62% of the existing cyber cafs are interested in continuing their retail business of Aircel products since the returns are satisfactory and, whereas 38% are not. . Interested cyber caf are those who have a diversified business or are trying to diversify their business.

Recommendations:
1. Special benefits, more than that of the competitors, should be made available. 2. Promotion of the products and business scheme targeted to the cyber caf owners should be undertaken. 3. After sales service for the retailers should be taken care of. 4. The retailers should be provided with Gift coupon or other rewarding benefits to make them interested in the business. 5. The caf visited during this study should be further communicated with and pursued for the business.

Chapter 1 Introduction:
1.1 TELECOMMUNICATION

INDUSTRY IN INDIA

At 110.01 million connections ' Indian Telecom Industry' is the fifth largest and fastest growing in the world. The subscriber base has grown by 40% in 2005 and is expected to reach 250 million in 2007. Over the last 3 years, two out of every three new telephone connections were wireless. 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 grow at 2.5 million new subscribers every month in 2007. The wireless subscriber base skyrocketed from 33.69 million in 2004 to 62.57 million in FY 2004 -2005. The wireless technologies currently in use ' Indian Telecom Industry ' 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 telecommunication circles and 4 metro cities, covering more than 2000 towns across the country. And the numbers are still growing for ' Indian Telecom Industry '. Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of India' (TRAI). It has earned good reputation for transparency and competence. Three types of players exists in ' Telecom Industry India ' community * State owned companies like - BSNL and MTNL. * Private Indian owned companies like - Reliance Infocomm and Tata Teleservices. * Foreign invested companies like Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications, Aircel etc. The Indian Telecom Industry services are not confined to basic telephone but it also extends to internet, broadband (both wireless and fixed), cable TV, SMS, IPTV, soft switches etc. The bottlenecks for ' Indian Telecom Industry ' are: Slow reform process. Low penetration. Service providers bears huge initial cost to make inroads and achieving break-even is difficult. Huge initial investments. Limited spectrum availability and interconnection charges between the private and state operators.

The Government Broadband Policy, 2004, aims at 9 million broadband connections and 18 million internet connections in 2007. Indian Telecom Industry ' is currently expected to contribute nearly 1% to India's GDP which is heartening and estimated to grow further and brighten the ' Scenario of Indian Telecom Industry '.

1.2 TRENDS

IN MOBILE COMMUNICATIONS

The growth and penetration of sophisticated digital communication systems, infrastructures, and services, has been increasing constantly over the last decade. Examples of these services are the Internet, electronic mail, multimedia, pagers, PDA's, and mobile telephony. From marginal penetration 15 years ago, these systems and services are becoming a commodity in both professional and consumer markets worldwide. The developments in these fields are still going strong. In particular, rapid advances - both in technology and services - can currently be observed in wireless and mobile systems that support the communication of different media, such as data, speech, audio, video and control. Current wireless network and mobile phone services roll-out is centered around four available technologies, namely WAP, UMTS, Bluetooth, and mobile positioning systems. The wireless application protocol (WAP), initially carried by second generation GSM and in the future by third generation UMTS wireless networks, will turn the mobile phone into a networked smart-phone capable of low to medium data rate Internet functionalities. Bluetooth will allow for short-range data communication between consumer appliances in a domestic environment. Positioning systems will become integral part of mobile phones such that services can be made dependent on the location of the user in the network. When projecting the progress in mobile networks and services into the future, three developments are of importance. In the first place, we can observe that more and more mobile phone-like devices start to include accessories such as a small keyboard, a display, and a speech interface. Such communication and information-oriented systems are emerging as hybrids between the mobile phone and the wireless laptop personal computer. With higher Bit rates supporting more advanced services, the integration of the personal computer and personal communication devices will be pushed even further. In the second place, we observe that computing resources are becoming ubiquitously - that is everywhere and at all time - available. We will soon live in an environment that supports us by providing ubiquitous Computing for a wide variety of tasks and services. Daily life consumables, durable products and services already contain an ever-increasing number of sensors, actuators, processing units, and (embedded) software. The personal computer has entered daily life as a necessary commodity, and the development of sophisticated communication systems in today's society relies heavily on the availability of computation resources. Finally, we observe that communication and computing is becoming increasingly personal. The device (and therefore the user) is always on-line, the user is identifiable, the device can be personalized, and the system knows about the users position.

1.3 CELLULAR MOBILE PRICING STRUCTURE AND TRENDS Successful growth and diffusion of mobile communication services is focusing greater attention on how mobile relates to fixed networks. Accordingly, it is necessary for regulatory authorities to review current frameworks in those instances where regulation might impede the offering of certain pricing structures, such as calling party pays. This issue is critical in putting fixed and mobile networks on an equal footing, so the potential for competition between networks can be exploited. Testing the demand for new pricing structures can be left to the market. Successful growth and diffusion of mobile communication services is focusing greater attention on how mobile communication relates to the Internet and electronic commerce. This report reviews and benchmarks the pricing of emerging services such as short message services. Policy makers need to review current regulatory frameworks to enhance pricing innovation and competition in the provision of these services.

1.4 Company profile: Aircel

Aircel is a mobile phone service provider in India. It offers both prepaid and postpaid GSM cellular phone coverage throughout India. The Aircel group is a joint venture between Maxis Communications Berhad of Malaysia and Apollo Hospital Enterprise Ltd of India, with Maxis Communications holding a majority stake of 74%. Aircel is owned by Mr.C.Sivasankaran and Mr.Jean Paschal is the CEO of the company. Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. In December 2003, it launched commercially in Chennai and quickly established itself as a market leader a position it has held since. Aircel began its outward expansion in 2005 and met with unprecedented success in the Eastern frontier circles. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of operations. Till today, the company gained a foothold in 17 circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh, Karnataka, Delhi, UP(West), UP(East) and Mumbai. The Company has currently gained a momentum in the space of telecom in India post the allocation of additional spectrum by the Department of Telecom, Govt. of India for 13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and UP (East). With over 20 million happy customers in the country, Aircel the fast growing telecom company in India has revved up plans to become a full-fledged national operator by end of 2009. Aircel got the highest rating for overall customer satisfaction and network quality in 2006 by Voice and Data. Aircel was rated as the top mid-size utility company in Business World. List of Best Mid-Size Companies in 2007. Moreover, Aircel has been selected as the best regional operator in 2008 by Tele.net. Aircel is headed by Shahid Mustafa who was asked to leave Hutchinson Essar Ltd - Mumbai.

10

Aircel are one of the sponsors of the Indian Premier League Cricket Team Chennai Super Kings captained by Mahendra Singh Dhoni. It is also the sponsor for Professional Golf Tour of India from 2009 onwards, Aircel is proud to be sponsoring the NTBTC (National Tenpin Bowling Team Championship), Aircel has embraced its new passion on the form of an association with the Shillong Lajong Football Club (SLFC), Aircel has partnered with major fashion shows of the country such as Lakm Fashion Week and Delhi Couture Week, Aircel is a part of LFW for the second consecutive year as the Associate sponsor. A key highlight this year is Ariels association with leading designer Sabyasachi for a collection based on the Save Our Tigers theme, a CSR initiative from Aircel, Aircel also partners with the Delhi Couture Week a great showcase of the best in Indian couture designs. The last edition took place in July 2011.

1.5 AIRCEL AWARDS AND ACHIEVEMENTS

Voice and Data gave Aircel the highest rating for overall customer satisfaction and network quality in 2006. Aircel emerged as the top mid-size utility company in Business worlds List of Best MidSize Companies in 2007. Tele.net recognized Aircel as the best regional operator in 2008. Aircel have been honoured by CMAI INFOCOM for excellence in marketing of new telecom service in 2009. Aircel also won the GLOBAL MOBILE AWARD ON 2010. AIRCEL WON THE 4TH BEST EMPLOYER AWARD ON 2009-10 Indias 5th largest GSM Mobile service operator Aircel won the Business Delivery Innovation award ON 2010

COMPANY OFFERING (PRODUCTS)

Aircel mainly deal in its core business of cellular connection. It provides variety of products such as. -Post-paid mobile connections -Prepaid mobile connections -Recharge vouchers -Value added services -Broadband connections

11

1.6 MISSION STATEMENT:

We are conditionally to exceeding our customers expectations. We will provide network and services that are innovative and reliable, allowing our customers any time anywhere communications. We will attract, develop and retain an exceptional team of people. We committed to enhancing the quality of real life in the community in which we operate. We will meet the financial expectation of our shareholders. 1.7

AIRCELS GOAL AND VALUES:

Customers: Our customers are our most valued assets. We will strive to exceed their expectations at all time by providing them with superior services that embody value, innovation, quality and care. People: Our people are our greatest resources. We will attract, train and retain the best. We will challenge them to develop their full potential in the context of our company goals. Integrity: We will maintain and strive for the highest level of personal and professional integrity and honesty in all our dealings. We will keep our promises. Respect: We will treat with respect and dignity all people we deal with. Excellence: We are committed to excellence in all what we do. There will be no place for mediocrity. Work: We will promote a work environment that embraces creativity, promotes empowerment and encourages them work, innovation, prudent risk taking, honest and open communication and respectful iconoclasm. Quality: The hallmark of our internal and external outputs and processes will be quality. This will pervade every aspect of our functioning

1.8 AIRCEL IN ASSAM

Aircel a fastest growing telecom service provider company has started its proceedings and operations in Assam in 2005 and since then it is quickly progressing company in terms of Sales Services Offers and Schemes Network After Sales Services
12

At present Aircel is available in all over Assam. Aircel is one of the finest and best network providers in Assam with a strong network which is improving day by day. If we take value added services and after activation facilities there also Aircel gives strong competition to its competitors with its eye catching and popular schemes for consumer as well as for its retailers.

1.9 COMPETITORS PROFILES

Airtel comes from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 15 states covering all four metros and more than 7 million satisfied customers. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 7.42 million total customers, which constitute, 6.76 million mobile and 657,000 fixed line customers, as of April 30, 2004.

Idea Cellular is a wireless telephony company operating in various states in India. It initially started in 1995 as a joint venture among theTatas, Aditya Birla Group and AT&T by merging "'Wings Cellular'" operating in Madhya Pradesh, Uttar Pradesh (UP) West, Rajasthan and Tata Cellular as well as Birla AT&T Communications. Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004 gave Idea a truly pan-India presence covering Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan and Delhi (inclusive of NCR). Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the company. But following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas and Birlas at 16.45% each. Vodafone Group is the worlds leading international mobile communications corporation. It currently has equity interests in 27 countries across 5 continents and 40 partner networks with over 303 million proportionate customers worldwide. The Essar Group is Vodafones principal partner in India. The Essar Group is a diversified business corporation with a balanced portfolio of assets in the manufacturing and services sectors of Steel, Energy, Power, Communications, Shipping

13

Ports & Logistics, and Projects. Essar employs more than 50,000 people across offices in Asia, Africa, Europe and the Americas. Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros. Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 license areas. It is among the top three GSM mobile operators of India. Vodafone Essar is owned by Vodafone 52%, Essar Group, 33% and other Indian nationals, 15%.

Reliance Communications The Late Dhirubhai Ambani dreamt of a digital India an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built Indias largest private sector company virtually from scratch, had stated as early as 1999: Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility. It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services for enterprises as well as individuals, applications, and consulting.

Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and Flag Telecom, is part of Reliance CommunicationsVentures (RCoVL). It is an Indian telecommunications company. According to National Stock Exchange data, Anil Dhirubhai Ambani controls 66.77 per cent of the company, which accounts for more than 1.36 billion share. It is the flagship company of the Reliance-Anil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services (Reliance Capital) and telecom initiatives of the Reliance ADAG. It uses CDMA2000 1x technology for its existing CDMA mobile services, and GSM-900/GSM-1800 technology for its existing/newly launched GSM services. RelCom is also into Wireline Business throughout India and has the largest optical fiber communication (OFC) backbone architecture [roughly 110,000 km] in the country.Reliance
14

Communications has interests in Direct To Home (DTH) TV also, known as "Big TV". It plans to launch its DTH business by July 2008. Once launched, RelCom will have presence across all B2C communications channel in one of the fastest growing markets. On the 30th December 2008, Reliance Communications became the first telecom operator in the history of Indian telecommunications to simultaneously launch its GSM services in 17 circles, namely Andhra Pradesh, Chennai, Delhi, Gujarat, Haryana, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh (excluding East Madhya Pradesh and Chhattisgarh), Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh (East & West) thereby establishing itself as a pan-India operator. It already operates GSM services in 8 circles namely Assam, Bihar, Himachal Pradesh, Kolkata, Madhya Pradesh, North Eastern states, Orissa, West Bengal. 1.10 Products

that are focussed in the study

Pocket Internet: Aircel PocketInternet is the mobile data service of Aircel. With Aircel
PocketInternet card, you can browse the net at an affordable cost. To download music, check mails, connect on Facebook and much more, cards are available from Rs. 5, Rs.14, Rs.28, and Rs. 98 with validity from 1 day to 1 month. PocketInternet cards/plans are available for both Prepaid/Postpaid. Aircel PocketInternet services are charged at a base tariff of 10p/10KB after expiry of validity period or usage of data limit, whichever is earlier. Downloads will be charged at actual cost

3G Services On Aircel:
The Third Generation of mobile communication technology, 3G, will bring to life the experience of mobile broadband on a mobile phone. With this technology you can enjoy superior videos, enhanced video calls and swift data transmission on the mobile phone that will make browsing quicker, exciting and efficient

The various 3G services are

15

3G Devices
3G is a new technology and not all phones support 3G features. Aircel has a range of gadgets with attractive tariff plans, which provides internet connectivity at a superfast speed.

Aircel offers a range of USB dongles for your convenience.

3G USB Stick

MMX 352G

> 7.2 Mbps Download > 5.76 Mbps Upload > MicroSD card support upto 32 GB

> 7.2 Mbps Download > 5.76 Mbps Upload > Flash memory card support upto 16 GB

16

1.11 Marketing channel is the ultimate route through which the business processes
are delivered to the targeted customers. A conventional marketing channel comprises an independent producer, whole seller(s), and retailer(s). Each is a separate business seeking to maximize its own profits, even if this goal reduces profit for the system as a whole. Most companies today adopted multichannel marketing. Multichannel marketing occurs when a single firm uses two or more marketing channel to reach one or more customer segments.(Kotler, P). A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process. A marketing channel is a useful tool for management. Roles of marketing channel in marketing strategies:

Links producers to buyers. Performs sales, advertising and promotion. Influences the firm's pricing strategy. Affecting product strategy through branding, policies, willingness to stock. Customizes profits, install, maintain, offer credit, etc( wikipedia)

Telecommunication network has a huge penetration, as with the rapid need of communication and data usage services, infrastructure as well as growth opportunities has increased manifold. In this age of communication, a reliable telecommunication network with a wide coverage will always have a demand in the market. This market for telecommunication products are ever growing and are intensely competitive. Primarily Marketing Channel for telecommunication products includes retailers dedicated to various products and also dealing with various brands. These retailers depend on agents for their supply. It is worth mentioning that rarely we will find retailers dealing exclusively with telecommunication products. This business is clubbed with other products and services. The purpose of creating a alternate channel is to make a Demand chain which sense and respond to the needs of the target customer and the firm responds to these needs by organizing a chain of resources and activities with the goal of creating customer value Channel level refers to each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer Direct marketing channel has no intermediary levels; the company sells directly to consumers Indirect marketing channels contain one or more intermediaries The importance of distribution is evident: customers must have access to the products in order to purchase them . This network of distributors and retailers can be described as a marketing channel, as they perform more tasks than just distribution and sales, the task of, either directly or indirectly, making anything of value available for use or consumption.

17

Channel members are in the business of acquiring and selling manufacturer products, whatever the underlying conditions, and are in principle not exclusive to only one manufacturer. Multiple marketing channels are defined as using more than one channel to reach the customer. Multiple marketing channels are used as different customers, with different buying behaviours, will flexibly use the channel that best serves their needs . Offering multiple marketing channels to consumers may have both competitive and complementary efforts: competitive as it might lead to channel preference, complementary as it might lead to higher customer satisfaction. Channels require operating as an integrated whole to attain efficiency, which can only be accomplished with effective cooperation and coordination between members.

1.12Alternate marketing channel

Alternate marketing channel is a source of making the products available for a particular target market through an unconventional route. These channels are better related to the targeted customers because of their proximity and better penetration in the target market. It also provides an additional promotion opportunity and a good amount of attention to targeted segment as the unconventional channels are not properly explored by the competitors. Alternate Channels is also the development of new marketing channels through which its clients can reach new customers and increase sales and brand awareness. These channels consist of affiliates, or promoters, who have face-to-face contact and existing relationships with the customers you seek, and produce leads that result in much higher close rates (typically triple) than other channels Venturing into the alternate channels also give the retailers of the channel a good amount of business opportunity and a source of additional profit. It helps to diversify the investment and provides exit opportunities if the current business is not giving sufficient returns. Benefits of alternate channel The company realizes significantly increased sales and brand awareness, with little investment or risk. Retailers benefit from the opportunity to earn additional income by leveraging their existing customer relationships and contacts. They also benefit by being able to offer their customers access to valuable products and services. Customers benefit by receiving compelling offers and access to high quality products and services Sales representatives benefit from receiving higher quality leads that enable them to close a higher percentage of sales
18

Chapter 2 Introduction to the Project.

2.1 Title: Establishing an alternate marketing channel and making it countable for Aircel prospective.
The study is based on the enquiry into the business prospects and establishment of Alternate Marketing Channel of Aircel in the form of Cyber caf in Guwahati city. Apart from the usual retailers , Aircel has ventured into retailing in cyber caf to make it as an alternate marketing channel for their various telecom products. In the initial stages of the establishment of alternate channel, 27 cyber cafes were branded and the products were made available.

2.2 Cyber caf was chosen as an alternate channel because of the following reasons:
1. The customers visiting an internet caf are in need of internet connection and therefore placing PI cards or Dongle in a cyber caf will definitely attract customers for the company. Generally visitors of a cyber caf dont have an internet connection of their own, and can become the prospective buyer of the internet products. Also people who are on the move visit a caf for their communication needs. therefore it make sense to cater them with these products as they may be interested to have a wireless net connection 2. Cyber caf provide good amount of branding space and will help to promote the products of Aircel. Most of the cyber caf have cubicles, which can be used as a good display space. As this concept is new , therefore competition is less and display space can be obtained at a reasonable price. 3. Most of the customers visiting a cyber caf fall in the younger generation, and this will be a good target segment for Aircel. This segment wants a good mobile internet connection both for mobile and laptop. And therefore cyber caf is a good place to target this segment in the market 4. Cyber caf has already an established market of its own and most of the customers are loyal customers, therefore it becomes easy for Aircel to target those customers of the cyber caf. This cuts down the acquisition cost of the company to target new customers. Most are the customers visiting a caf have a good relation with the caf owner, and therefore those customers can be convinced to buy the product quit easily. 5. Advertisement time and cost of Aircel significantly falls down since the owner and manager of cyber caf plays a great role in convincing and converting their customers to move to Aircel network. 6. Cyber caf is present in every corner of the city. This gives a lot of advantage in reaching a large number of people throughout the city.

19

2.3 Objectives
The project is based on the following objectives: 1. Update the database of the already active cyber cafes dealing with Aircel products. 2. Communicate with other cyber cafes and enquire about their interest in the business.

Update the database of the already active cyber cafes dealing with Aircel products. There are 24 cyber cafes in Guwahati already dealing with Aircel products but it was found that some important information, about the cyber cafs was missing from the database. This creates problem in communicating with those retailers and keeping track of their business with Aircel. The information about those cyber cafes were collected in a predetermined format. The survey was conducted to get a clear idea about the number of active cyber caf in Guwahati dealing with Aircel products. This will help in giving better attention to those cyber caf and will cut down the time and effort given to those caf which are no longer active. Another major point was to find out the level of interest of those caf to do business and also to convince them to increase the products they deal with. The feedback of those retailers was noted as this will help in providing them with all the necessary requirements for the betterment of the business.

Communicate with other cyber cafes and enquire about their interest in the business. For exploring further opportunities, new cyber cafes were contacted and informed about the project. The owners of the cyber cafes were briefed up about the business prospects in dealing with Aircel products and their interest for the business was observed. Most importantly the acceptance level of the cyber caf owners for taking up the business was noted. Since some of the cyber caf were not active, it became necessary to increase the number of cyber caf dealing with Aircel products. As the main objective of the project was to establish the alternate marketing channel, therefore it became necessary to bring in more cyber caf under the project and make the products available in those counters.

20

2.4 Significance of the study.

The study holds its significance in the fact that alternate marketing channel in the form of cyber caf is a very new concept and an unexplored territory with few competitors. This channel provides adequate promotional advantages and better positioning of the products for the target market. This project revolves round the business prospects of the company with respect to the cyber cafes and is of immense importance in reviewing the alternate marketing channel. Telecommunication industry is a rapidly growing industry and is fiercely competitive. Therefore companies have to evolve new and innovative methods to reach out to the market and advertise themselves. The products of all the company are more or less same; therefore, the companies can leverage the marketing option to increase the sales. Better positioned and better displayed products will definitely have a good advantage in the market. Cyber caf therefore provides a good alternate channel and the proper update about the various aspects is of utmost importance. Therefore this project was carried out to get a clear idea about the various active cyber caf dealing with Aircel products and also to bring new cyber caf to deal with Aircel.

21

Chapter 3: Research Methodology

3.1 Research plan:
This research is a exploratory research as the study is based on the securing information about the various aspects of the alternate marketing channel. At the initial stages we lacked a clear idea about the various aspects of this marketing channel and viability of the project. The questions asked during the interview were aimed at exploring the feasibility of the marketing channel and capturing prospective retailers interest about the business prospect.

3.2 Data collection Method: 3.2.1 Sample Size:

The sample consists of 77 cyber cafes spread throughout Guwahati city. During the first phase 24 cafes were visited which are currently retailing Aircel products. During the second phase 53 cyber cafes were visited with the objective to get an idea about the interest of new cyber cafes to deal with Aircel products.

3.2.2 Sampling Method:

For the first objective, all the 24 cyber cafes dealing with Aircel products were approached to gather information. These new information were added with the already known facts to give an updated database of the existing retailers. The sample consisted of 24 cyber cafes. The second objective is based on cluster sampling, through which some major places of Guwahati, were selected for gathering data about the interest of those cyber cafes in dealing with Aircel products. 53 new cybercaf were approached. The areas selected for visiting those cyber caf were: 1. 2. 3. 4. 5. 6. GS Road Silpukuri road( Guwahati club to Chandmari) ZOO Road Beltola Narengi Bhorolumukh

3.3 Research instrument:

This is an exploratory study trying to understand the viability and business prospects in the alternate marketing channel and is based on the primary data collected through the interaction with the owner or the manager of the various caf visited.

22

3.4 Sources of data.

Primary Data was gathered through the interaction with the various executives of the Marketing and Sales Department of Aircel, to get information about the different products of Aircel and their business schemes. Another source of primary data was the owner and managers of Cyber cafs and with the interaction with them, their interest and also their information about the business in this alternate channel was noted.

Secondary data was gathered mainly through the company brochure related to the
business plan and schemes. Company website of Aircel and various other websites were searched for information about the company and the industry as a whole.

3.5 Questioner for the study.

Interview method of data collection is used for the study. A definite set of questions were prepared, keeping in mind the various information that need to be gather for the study. The questions were open ended as no definite set of options were given to the respondents. Because of the fact that the cyber cafs were visited on the business hours, no formal questioner was prepared as it would have been time consuming. The following questions were asked during the interaction with the owners or the managers and their reactions noted. 1. Are you still dealing with Aircel products? 2. Are you dealing with any other telecom products?

3. What are the products of Aircel do you retail? 4. Are you satisfied with the profits coming out of the business with Aircel?

5. Do you have the branding of Aircel products in your caf? 6. How often does sales person from Aircel visit your outlet?

7. Do you have any feedback for the company in terms of services offered? 8. Do you face any problem retailing Aircel products? 9. Would you like to continue dealing with Aircel products in future?

23

3.6 Analysis Technique

The research is a qualitative research and therefore interpretation of data is of utmost importance. Various graphical tools such as bar diagram as well as self-interpretation has been done to evaluate the data. 3.7 List of cyber cafs visited in the first phase that was already dealing with Aircel products. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Rakesh Communications MAA Trading. Saatbhani Advertising Enigma Internet Caf E point Puspha internet Service Huge internet caf Sona Graphic Dee Tech Solutions UCN Associates Om computers NC Computer Training Institute Comp Aid CS Hi speed internet Kalpana internet Shades Kay Cee computers OM e Communications Annapurna Infotech P communications Click Internet Fun Byte Cyber Adda Choudhury Internet caf Internet Hub Computer Care

24

Chapter 4: Analysis and interpretation

The respondents consisted of the owners or managers of the cyber cafe. The survey was conducted during business hours. Following are the interpretation of the questions asked during the interaction.

1. Are you still dealing with Aircel products?

yes 42% no 58%

The chart shows that about 42% of the cyber caf that were branded stills deals with the Aircel products but 58 % have left retailing Aircel products. Various reasons were given by those cyber caf owners including over burden of work, lack of space and also lack of demand because of competition in the market. Some people feel that the customers are not aware of the various products and offers provided by the company, which results in lack of demand. 2. Are you dealing with any other telecom brand?

25

no 20%

yes 80%

Most of the retailers of Aircel were found dealing with various other competitor brands. In all 8 cyber caf are dealing with other telecom products. But the competitor branding were absent or negligible. In this case good amount of branding of Aircel products gives a competitive advantage with respect to the competitors. 3. What are the products of Aircel do you retail?

2.5 2 1.5 1 0.5 0

Product-wise Distribution. products availible in no. of outlets

8 6 4 2 0 PI E- Recharge Dongle RCV

4. Are you satisfied with the profits coming out of the business with Aircel?
26

Satisfaction with the Profit

22%

yes no 78%

78% of the retailers are satisfied with the commission provided for retailing different products and also with the demand of the products. But they feel that the customers are not aware of the products or the offers and therefore therefor there is a lack of demand.

5. Do you have the branding of Aircel products in your caf? Branding of Airel Products

no 18%

yes 82%

27

Branding of Aircel products were visible in majority of the cyber cafes (18). Most of the branding was that of PI plans whereas dongle has also a considerable share of branding. Branding was both attractive and informative about the various products of Aircel. It is definitely a good form of advertisement. 6. How often does sales person from Aircel visit your outlet?

Number of times Sales People Visit the retailer.

16 14 12 10 8 6 4 2 0 2-3 times 3-4 times 1-2 times

15 respondents said that the sales person visit their outlet about 2 to 3 times, 3 respondents said 3-4 times and 5 respondents said 1-2 times. Some of the caf owners make personal contact with the sales person to replenish their stock. On the other hand some have complained about the indifferent attitude of some of the sales persons who does not answer their repeated calls regarding delivery of stock and other problems. 7. Do you have any feedback for the company in terms of services offered? Following are the various feedbacks gathered from the cyber caf owners. 1. Sales person visit should be made more frequent. 2. Display shelf for the Aircel products should be provided. 3. There should be a facility through which the sales person can be called if the customer demands a definite product or service. 4. Retailers margin should be increased. 8. Would you like to continue dealing with Aircel products in future?

28

interest in the business

not interested 38% interested 62%

It can be seen that 62% of the existing cyber cafs are interested in continuing their retail business of Aircel products since the returns are satisfactory and, whereas 38% are not. In the second phase of the survey, it was seen that 9 cyber cafes were interested to retail Aircel products after some time in future.

29

Chapter 5: Findings and Recommendations.

5.1 Findings.
Because of the increase of internet penetration, cyber caf business is on the downward slide. The owners of cyber caf are seeking new ways to diversify their business and therefore this project, by giving the cyber caf owners a chance to retail Aircel products, is feasible to a great extent. The major findings of the project are: 7. About 42% of the cyber caf that were branded stills deals with the Aircel products but 58 % have left retailing Aircel products. 8. Most of the retailers of Aircel were found dealing with various other competitor brands. In all 8 cyber caf are dealing with other telecom products. 9. 78% of the retailers are satisfied with the commission provided for retailing different products and also with the demand of the products and also with the demand of the products. 10. Branding of Aircel products was visible in majority of the cyber cafes (18 out of 24). Most of the branding was that of PI plans whereas dongle has also a considerable share of branding. 11. 15 respondents said that the sales person visit their outlet about 2 to 3 times, 3 respondents said 3-4 times and 5 respondents said 1-2 times. Some of the caf owners make personal contact with the sales person to replenish their stock. 12. It can be seen that 62% of the existing cyber cafs are interested in continuing their retail business of Aircel products since the returns are satisfactory and, whereas 38% are not. . Interested cyber caf are those who have a diversified business or are trying to diversify their business. 13. The cyber caf retailers are looking forward for a better benefit than that given by the competitors. 14. Most of the cyber caf are not interested in this business because they find it difficult to operate individually. 15. Some of the cyber caf stopped dealing with Aircel products because of the improper after sales services.

5.2 Recommendations
1. Special benefits in the form of better OTF commission compared to that given by the competitors should be made available. The margin should be different from that given to the usual retailers so that the cyber caf owners feel the difference in benefit and are encouraged to take up the business. 2. The company should promote or advertise its products, specifically targeted to the caf owners and should communicate the benefits associated with the business through advertisement and other forms of promotion. This promotion with also give the various information about the business scheme
30

3. The company may sponsor some of the products associated with the internet caf so that the caf owner become better attached to the company and became a trusted retailer. The internet connection or some other devices may be given to the cyber caf at a subsidised rate. 4. After sales service should be taken care of. During the study it was observed that the retailers were not satisfied with the after sales service. They complain about the non-availability of sales person when called for.

5. A dedicated team should be made to look after the alternate marketing channel. Since this is a viable channel to market the products and services, it will be of immense benefit to the company if this segment is better looked after. Specialised personnel should look after the after sales services and the availability of products at those outlets and should regularly look out for other cyber caf which can be branded to be an Aircel retailer. 6. The retailers should be provided with Gift coupon or other rewarding benefits to make them interested in the business. These benefits will became a source of motivation for the retailers and they will always like to be engaged in the business 7. The cyber caf visited during this study should be further contacted to note their interest in the long run. Some of the cyber caf showed interest in the business but will take it sometime in the future. They should be contacted and regularly updated about the profits and the business scheme.

8. At least at the initial level, a different promotional and recharge schemes for customers at those cyber caf should be provided to help them get a better benefit from Aircel branded cyber cafes. This will help the customers identify the cyber caf as a retailer and will also help the cyber caf in their promotion of Aircel products. 9. Other Alternate channel can also be explored. Newspaper Stalls can also be a good alternate channel as people visit them on a regular basis and they also have a network of trusted customers.

31

32