Summer Training Report

On

“DISTRIBUTION STRATEGY OF SIM CARD”

At

BHARAT SANCHAR NIGAM LIMITED

JAMSHEDPUR

Prepared By
KUMAR SAURABH
08SM005, PGPSM
Batch 2008-10

Institutional Guide Organizational Guide

PROF. V. T. THOMAS, MR. SHEKHAR KUMAR,
FACULTY OF IMIS,BBSR TTA, B.S.N.L, JSR

As a partial fulfillment of PGPSM programme

 Declaration.

I am KUMAR SAURABH, student of Post Graduate program of

service management, do here by declare that the report entitled
“DISTRIBUTION STRATEGY OF SIM CARD OF BSNL” is my
original effort and it has not been submitted to any organization
and university other than Institute of Management and
Information Science (Approved by AICTE), Bhubaneswar for any
purpose what so ever.

------------------------------------
KUMAR SAURABH
Enrollment No: 08SM005
PGPSM, IMIS
Batch- 2008-2010
 Page No.- I
Acknowledgement.

It is my proved privilege to release the feeling of my gratitude to

several persons, who helped me directly to conduct this project
work.

At first, I am very much grateful to my parents for their support

& inspiration on this project.
I Wish to express my heartfelt thanks to Prof. K. K. BEURIA
,FACULTY & ADVISOR OF IMIS for their Motivation, Inspiration
& encouragement.
I am greatly indebted and remain ever oblige to the
principal and faculties of Institute of management and
information science for their coordination and cooperation. My
special thanks go to Capt K.S.V. Subramanian (Retd) Chief
Coordinator (training and placement), Instituted of
Management & Information Science, Bhubaneswar, for giving
me this
Chance to do my Dissertation. I am also grateful to my internal
guide Prof. V. T. THOMAS who helped me understanding the
project nicely so that I could make it successful. Also I would like
to express my sincere thanks to Prof. V. T. THOMAS for
encouragement & extending his support in completing the
project training in B.S.N.L.
Then, I express my deep sense of gratitude to my external guide
Mr. SHEKHAR KUMAR, TTA (Telephone Technical Assistant) at
B.S.N.L. for giving me an opportunity in getting exposure of
functional aspects & practical experience of an organization with
guidance, vital support & cooperation. I also express profound
gratitude to Mr. PANKAJ KR. SINGH at B.S.N.L for helping,
guiding & also giving required information & suggestions that
enrich my knowledge to take a proper decision.

I am also extremely thankful to all of them, who have positively

responded my questionnaire, around whom the whole project
cycle revolves.
KUMAR SAURABH
thank you……… RALL NO. 08SM005,
PGPSM, IMIS
 PREFACE

As a partial fulfillment of the PGPSM course in which Eight weeks training

has been incorporated in the curriculum, during which a study is to be done
in an organization mainly to extract the practical knowledge & skill from
actual work environment. This project provided us an opportunity to gain
profound insight into a practical applicability of management concepts and
developing better ability to analyze problems and decisions that has
contributed significantly for better use of resources available to the
management.

To understand and to apply the concepts of the curriculum, we have

undergone summer training in BHARAT SANCHAR NIGAM LIMITED
(B.S.N.L), Jamshedpur, in the title of the project––“DISTRIBUTION
STRATEGY OF SIM CARD OF B.S.N.L”. for which a report has been
prepared with suggestions and opinion of the respective subject given by
us.

In this report every possible step that had been taken in the project are
shown as a glimpse, with a hope that it will be a tool to help the
organization through the findings and opinion given in the report.
 EXECUTIVE SUMMARY

I had undergone a project in, B.S.N.L, JAMSHEDPUR, as a

partial fulfillment of Post Graduate Program in Services
management from the Institute of Management and Information
Science. The project assigned to me is –“DISTRIBUTION
STRATEGY OF SIM CARD OF B.S.N.L”.

OBJECTIVES
The major objectives of this project are:

1) Analyzing for Place decision to increase sales volume.

2) Creating awareness to customers of rural area about the
facilities in BSNL SIM connections.
3) Arranging Distribution of SIM card in organized way.
4) Suggesting for Retailing approach toward customer.
5) Collecting the datas of different age group of customers
to know customer satisfaction.
6) Suggesting to apply CRM.
7) Motivating for Cross culture environment with
privatization.
8) Suggesting for Demand & Supply accordingly time
management.
9) Motivating to maintain brand position by competing with
competitor.

1) Analyzing for Place decision to increase sales volume:

Place decision is necessary at first. Because B.S.N.L is trying to
cover whole area & for it 4 respective franchisees are present
accordingly their area. Also many sub franchisees, more than
150 retailers & many end user level employees are present to
provide the SIM card. But, actually they want coverage of whole
market. But, one very important thing they are missing that they
are not deciding place where selling is more or good.

2) Creating awareness to customers of rural area about the

facilities in BSNL SIM connections:
B.S.N.L is not providing some place for providing service for
customer convenience. They are not watching that how can
people of countrysides of jsr, village area attached with jsr or
rural area of jsr reach the service station. How can people of
rural area meet with easily their required service? So , B.S.N.L
should target to rural area & focus on their demand. It will also
develop their selling of SIM card.
 3) Arranging Distribution of SIM card in organized way:
The service providers of B.S.N.L are trying to cover whole market.
That is good for distribution. But, proper co-ordination in
distribution channel is lacking. Definitely, inventory system
should be there for providing quick service, by which customer
could not wait for any service. Special warehouse should be
available in which lots of variety of SIM cards can be stored. Order
processing & transportation should be also done in good manner.

4) Suggesting for Retailing approach toward customer:

There should apply retailing approach means right product,
right service, right time, right price, right place & right
customer. In other word we can say that all things should be
done in a right way.

5) Collecting the datas of different age group of customers

to know customer satisfaction:
If B.S.N.L want to increase their selling of SIM card. Then at first
we will have to know that what is the level of customer
satisfaction & for that we will have to arrange survey to know
customer satisfaction. What actually customers want for
satisfaction? We will see it by survey. So that I have arranged like
100 sample size like 20 students, 20 retailers, 20 housewives, 20
employees, 20 businessmen. I have also arranged a
questionnaire to know customers response about satisfaction.

6) Suggesting to apply CRM:

Here B.S.N.L know very well that customer is king. Whether
customer is begger or rich, if customer has paying capacity then
customer is king. This concept B.S.N.L follow very well. But, if
B.S.N.L will consider about making relationship with customers
then it will also help to increase selling of SIM card. So, that the
service provide can concentrate of three types of customers like
old or lost customers, new customers, current customers. They
can also consider about two types of current customers like
permanent customers & temporary customers. If customers are
permanent then service provider should retain permanent
customers. if customer are new or temporary then customers
must be motivated by service provider. So, that CRM (customer
relationship management) should apply.

7) Motivating for Cross culture environment with

privatization:
Cross culture environment must be there in BSNL. Because if
different types of experienced persons, different cultured
persons, different religious persons, different background
persons, different qualified persons, different employees related
to two different organization, different language speakers,
different post holders, different natured persons, different types
of problem solver, different working persons, different types of
helper or supporting persons etc. are working together in BSNL
than some conflict may arise. But, if all persons will follow cross
culture & work unitely then I think work will be done in easily &
simple way. Also, it will be more convenient to each other. So, it
will be certainly helpful to achieve target of more selling of SIM
card of BSNL.

8) Suggesting for Demand & Supply accordingly time

management:
If demand & supply will be accordingly time management then it
will be also helpful to increase selling of SIM card of BSNL.
Because, if customer will get quickly SIM card. Then definitely
demand will be increase. But if supply will not match with
demand of customers. Then customer will be demotivated.
Today at the fast running time, each & every customers want
quick response. Thatswhy they find always quick service
provider. Because they are very intelligent. Customers know very
well that they will get same product with small period of time
with quick service by quick service provider. With their busy
schedule customers want always saving of time. They find also
who is quick service provider. Because, they have no patience for
waiting to get any product or service. So, demand & supply will
be accordingly time management.

9) Motivating to maintain brand position by competing with

competitor:
For running of any business, there is a rule of marketing that to
identify their business competitor & always compete them to get
success. Also it is the best process to maintain own brand
position for any organization. Thatswhy, BSNL should try to
identify who are the competitors of BSNL & how can get winning
& standing position in the market. Every one knows that BSNL
has brand position but due to some technical problems the
selling of SIM card has decreased. But, it can be increased. If
BSNL will understand these things. Like as, now a days IDEA,
AIRCELL, VODAFONE etc. are trying to get more & more success
achieving. Also, they are getting more response from customers.
According to me, they can be good competitor for BSNL. Hence,
BSNL must definitely try to compete with them & as well as
maintain their Brand Position. It will surely & certainly help to
increase more & more selling of SIM card & BSNL will be also
successful to achieve more & more customer response.
SCOPE

People differ from each other not only due to the biological
characteristics but also due to financial position such as income,
expenditure, saving they have. According to these their needs
varied from each other. Due to this the financial requirement
and ability to get the requirement differ from person to person
so the financial strategies/ market especially these services
providers caters to a vast area from each of these aspects stated
above.

The title of my project is“DISTRIBUTION STRATEGY OF SIM

CARD OF B.S.N.L”.

LIMITATIONS:

Time constant: Due to lack ness of time I was unable to cover

all the area .As telecom is very vast area so it need long time to
cover all the area.

Language: I have also faced lot of language problem, as I am

not localizing so I don’t know local language so it create
problem in communicating with people.

Unawareness: Some persons are not aware about terms or

different service

So it creates problem in getting information or doing survey.

RESEARCH DESIGN
In the initial phase of the study, Exploratory research was
used in the form of personal interview to develop an
understanding of the problem. The research was mainly used to
understand the values, emotional drives and motivations
residing at the subconscious level which are disguised from the
real world.
In the later part of the study, Descriptive research was used
in the form of survey through questionnaire method, this was
done to quantify the data and generalize the results from the
sample to the population of interest.
Data Collection Strategy
The secondary data would be gathered through journals, books
and through internet. In Primary data collection, the exploratory
research would be undertaken through personal interview so as
to gather data to prepare the questionnaire for the descriptive
research. Personal interviews and a written questionnaire were
used in the collection of data for this study.
The interview was based on the questionnaire. The interview
was mainly done to understand the knowledge of the CRM and
the satisfaction level of the customer. This data was used later to
frame the questionnaire.

RESEARCH METHODOLOGY
A. Sample and sample size

Sample size of people survey - 100

B. Customer survey

The sampling adopted for people survey is convenient

sampling. The people are surveyed on a convenient basis from
Middle-class people to high-class people at Jamshedpur, to know
their and satisfaction level. The study is conducted based on
Questionnaire/ telephonic interaction with the customer on
their satisfaction level.

C. Research Design

According to their objective, type of research adopted is

based on the, non–probability sampling method through
Questionnaire/ Telephonic interaction based study on B.S.N.L
customer.

D. Data collection method

Primary data –Questionnaire/Telephonic interaction based

data collection from B.S.N.L customer database.
Secondary data – Industry profile and company details are
collected from journals. Websites, books and magazines.
CHAPTER – I
INTRODUCTION

The telecom industry is one of the fastest growing industries

in India. India has nearly 200 million telephone lines making it
the third largest network in the world after China and USA. With
a growth rate of 45%, Indian telecom industry has the highest
growth rate in the world.
History of Indian Telecommunications started in 1851 when the
first operational land lines were laid by the government near
Calcutta (seat of British power). Telephone services were
introduced in India in 1881. In 1883 telephone services were
merged with the postal system. Indian Radio Telegraph
Company (IRT) was formed in 1923. After independence in 1947,
all the foreign telecommunication companies were nationalized
to form the Posts, Telephone and Telegraph (PTT), a monopoly
run by the government's Ministry of Communications. Telecom
sector was considered as a strategic service and the government
considered it best to bring under state's control.

The first wind of reforms in telecommunications sector began to

flow in 1980s when the private sector was allowed in
telecommunications equipment manufacturing. In 1985,
Department of Telecommunications (DOT) was established. It
was an exclusive provider of domestic and long-distance service
that would be its own regulator (separate from the postal
system). In 1986, two wholly government-owned companies
were created: the Videsh Sanchar Nigam Limited (VSNL) for
international telecommunications and Mahanagar Telephone
Nigam Limited (MTNL) for service in metropolitan areas.
 In 1990s, telecommunications sector benefited from the
general opening up of the economy. Also, examples of telecom
revolution in many other countries, which resulted in better
quality of service and lower tariffs, led Indian policy makers to
initiate a change process finally resulting in opening up of
telecom services sector for the private sector. National Telecom
Policy (NTP) 1994 was the first attempt to give a comprehensive
roadmap for the Indian telecommunications sector. In 1997,
Telecom Regulatory Authority of India (TRAI) was created. TRAI
was formed to act as a regulator to facilitate the growth of the
telecom sector. New National Telecom Policy was adopted in
1999 and cellular services were also launched in the same year.

Telecommunication sector in India can be divided into two

segments: Fixed Service Provider (FSPs), and Cellular Services.
Fixed line services consist of basic services, national or domestic
long distance and international long distance services. The state
operators (BSNL and MTNL), account for almost 90 per cent of
revenues from basic services. Private sector services are
presently available in selective urban areas, and collectively
account for less than 5 per cent of subscriptions. However,
private services focus on the business/corporate sector, and
offer reliable, high- end services, such as leased lines, ISDN,
closed user group and videoconferencing.
Cellular services can be further divided into two categories:
Global System for Mobile Communications (GSM) and Code
Division Multiple Access (CDMA). The GSM sector is dominated
by B.S.N.L , Airtel , Vodafone-Hutch , and Idea Cellular,
 while the CDMA sector is dominated by the Reliance and Tata
Indicom. Opening up of international and domestic very long
distance telephony services are the major growth drivers for
cellular industry. Cellular operators get substantial revenue
from these services, and compensate them for reduction in
tariffs on airtime, which along with rental was the main source
of revenue. The reduction in tariffs for airtime, national long
distance, international long distance, and handset prices has
driven demand.
An Overview of Telecom Industry

Telecom in the real sense means transfer of information

between two distant points in space. Telecom is a huge and
varied fastness of technologies, companies, services and politics
that is truly global in nature.

Telecom stands as one of the most essential elements of the

business world in terms of “Connecting the World”

The Indian telecommunications industry is one of the fastest

growing in the world and India is projected to become the
second largest telecom market globally by 2010. Presently, the
Indian telecom industry is currently slated to anestimated
contribution of nearly 1% to India’s GDP.

Evolution of the industry-Important Milestones

History of Indian Telecommunications
Year
1851 First operational land lines were laid by the government
near Calcutta (seat
Of British power)
1881 Telephone service introduced in India.
1883 Merger with the postal system.
1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and Cable
Communication
Company (IRCC).

1947 Nationalization of all foreign telecommunication

companies to form the Posts, Telephone and Telegraph
(PTT), a monopoly run by the government's Ministry of
Communications.

1985 Department of Telecommunications (DOT) established,

an exclusive provider of domestic and long-distance service
that would be its own regulator
(separate from of the postal system).
1986 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.
1997 Telecom Regulatory Authority of India created.
1999 Cellular Services are launched in India. New National
Telecom Policy is adopted.
2000 DoT becomes a corporation, BSNL.
COMPANY PROFILE
 BSNL company Profile

SIM -Nigam
Bharat Sanchar Subscriber Information
Ltd. formed in October, Module
2000, is World's
7th largest Telecommunications Company providing
comprehensive range of telecom services in India: Wireline,
CDMA mobile, GSM Mobile, Internet, Broadband, Carrier
Meaning of SIM –VSAT,
service, MPLS-VPN, “Subscriber Information
VoIP services, IN ServicesModule”, is a
etc. Within
programmable
a span of five years carditthat stores all
has become one ofofa the
celllargest
phonepublic
subscriber's
sector
personal
unit information and phonein settings. It is otherwise known
India.
as a "smart card". The SIM card is used by the subscriber as an
authorization
BSNL has installed to use the network.
Quality Telecom TheNetworkcardinstores the phone
the country and
number, personal
now focusing onsecurity key and
improving it, other data necessary
expanding the network,for a
phone's functionality.
introducing new telecom A subscriber
services canwith switch the card from
ICT applications in
phone to and
villages phone whichcustomer's
wining makes the confidence.
new phone receiveToday, all
it calls to the
has about
subscriber's
47.3 millionphone line number.
basic telephone capacity, 4 million WLL
capacity, 20.1 Million GSM Capacity, more than 37382 fixed
Aexchanges,
SIM card is one type
18000 BTS,of287a security
Satellitedevice that 480196
Stations, is used Rkm
on GSM of
networks. It makes stealing numbers or making
OFC Cable, 63730 Rkm of Microwave Network connecting 602 fraudulent calls
difficult.
Districts,The7330 card also makes it possible
cities/towns and to roam
5.5 Lakhs within other
villages.
GSM operators around the world when the SIM card is
transferred
BSNL is thetoonly a phone
servicethat uses themaking
provider, correctfocused
frequency bandand
efforts for
the countries
planned being traveled
initiatives to bridgeto. the Rural-Urban Digital Divide ICT
sector. In fact there is no telecom operator in the country to beat
Other Related
its reach withDefinitions:
its wide network giving services in every nook &
corner of country and operates across India except Delhi &
“…GSM phones have SIM (Subscriber Information Module) cards
Mumbai. Whether it is inaccessible areas of Siachen glacier and
inside. Without a SIM card, a GSM phone is just a paperweight. It
North-eastern region of the country. BSNL serves its customers
has no information about the carrier, your plan, or any of the
with its wide bouquet of telecom services.
other things it needs to join the network. The nice thing is, if you
can get your phone unlocked, you can go to many other countries
BSNL is numero Uno operator of India in all services in its