1

THE ANALYSIS OF IMPACT OF MEDIA

CAMPAIGNS AND SPONSORSHIP ON SALES
AND VISIBILITY OF BRANDS


( Submitted in partial fulfillment of the requirements for
PGDM )

By











SUMMER TRAINING COMPLETION CERTIFICATE

This is to certify that Mr. Udit Kumar Singh student of PGDM of Accurate Institute of
Management & Technology , Greater Noida, has undertaken the project titled The Analysis
Of Impact Of Media Campaigns And Sponsorship On Sales And Visibility Of Brands at
Matrix Cellular (International) Services Pvt. Ltd. from 04-05-2013 to 05-07-2013 and has
completed the project successfully.
I wish him a success in all his future career endeavors.
2


Industry Guide
Name:
Designation:
Organizations Seal






















CERTIFICATE OF ORIGINALITY





I_____________________________________ Roll No
________________________of 2013,is a fulltime bonafide student of first year of
PGDM Program of Accurate Institute of Management & Technology, Greater Noida.
I hereby certify that this project work carried out by me at
_____________________________________________________ the report
submitted in partial fulfillment of the requirements of the program is an original work
___________________
Signature with Date
3

of mine under the guidance of the industry mentor __________________ and the
faculty mentor ______________________________________________and is
not based or reproduced from any existing work of any other person or on any earlier
work undertaken at any other time or for any other purpose, and has not been
submitted anywhere else at any time




(Student's Signature)
Date: July, 2013





(Faculty Mentor's Signature)
Date: July 2013




























ACKNOWLEDGEMENT



Perseveration, inspiration and motivation have always played a key role in the
success of any venture. In the present world of competition and success, training
is like a bridge between theoretical and practical working; willingly I prepared
this particular Project. First of all I would like to thank the supreme power, the
almighty God, who is the one who has always guided me to work on the right
path of my life.


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I would like to thank Matrix Cellular (International) Services Pvt. Ltd. for
granting me permission to undertake the training in their esteemed organization.

I express my sincere thanks to Mr.Vipul Grover (manager Sales),
Ms. Niti Nanra (Deputy Manager),Mr. AnujTyagi(Manager, Sales) ,
Mr. VaibhavArora(Sr.Business Development Exicutive) .

I would also like to thank the members of, Sales team which consists of
Mr.RishiRai, Mr. MohitDua, Mr. SumitBaluni , Mr. NeerajNibhoriawho
devoted their valuable time by helping me to complete myproject.

My faculty Mentor Prof. Rajeev Mathew, for the valuable suggestion and
making this project a real success.















EXECUTIVE SUMMARY

The project deals with analyzing the impact of media campaigns and
sponsorships on sales and brand visibility in current market scenario and what
are the factors which influence the people for Matrixs Services. As we all know
that India is one of countries where there is largest telecom sector in the world,
a part from there are also competitors in this line.

5

The purpose of this research is to find out what will be the future scope of
increasing the sales and to see where the company is lacking behind. The
research process chosen by me is qualitative and quantitative research.
Questionnaire helps me a lot in finding the actual position of the market.

After analyzing the data the problem, which comes out is that the company still
needs to improve its advertising on TV commercials and radio. The fact that
people using Matrix is the convenience and reliability provided by Matrix staff.

A sample size of about 100 which includes individuals as well as corporate
customers was taken for purpose from various parts of Delhi and N.C.R . After
the survey was completed, the data was first stored and then analyzed on the
chosen parameters. This analyzed data was later on converted into graphs. Such
as pie chart, bar graphs, etc this was to make result easily comprehensible by
any one going through the report. Later on, all this information was compiled in
the form of a presentable and highly comprehensible report.










CONTNTS
Page

6

Sr. No Topic No.



Project Annexure A 1

Annexure B 2

Annexure C 3


Acknowledgment 4

Executive Summary 5



Chapter 1 Project Introduction 8

1.1 Company Profile 9

1.2 Current Portfolio 11

1.3 Matrix Clients 13

1.4 Matrix Products and Offerings 16

1.5 Media Campaign 17

1.6 Advertisements 22

1.7 TV Commercial 23

1.8 Planning and Sponsorship 24



Chapter 2 Literature Review 31



Chapter 3 Research Method 32

3.1 Research Problem 33

3.2 Research Methodology 32

3.2.1 Research Objectives 35

3.2.2 Research Design 36

3.2.3 Sampling Design 37

3.2.4 Data Collection Method 38

3.3 Scope of the Project 40












Page

Sr. No Topic No.

7























Chapter 4 Findings And Analysis 41

4.1 Global scenario 42

4.2 S.W.O.T Analysis International Sim Sector 43

4.3 Comparison with Competitors 44

4.4 S.W.O.T Analysis Matrix Cellular 46

4.5 Affiliates 47

4.6 RBI (Foreign Exchange Management Act) 49

4.7 Financial Analysis 55



Chapter 5 Conclusion And Recommendations 72

5.1 References 74







8



































1.1 Company Profile


9













Matrix Cellular International Services Pvt. Ltd. Is a Delhi basedCompany in
the business of providing mobile phone and wireless communication service, on
Domestic and International basis.

We have a very simple vision. A vision to get people connected cost effectively.
Our Services are cheaper & convenient.

We started operations in 1995 by offering short term mobile phone service
across New Delhi.

With the experience of these past several years, we have emerged as the
undisputed leader in cellular phone rentals in India enabling individuals,
corporate and foreign mission (during diplomatic visits) of all sizes to
communicate wherever there is a cellular phone network. Today we offer

the best in mobile services both in India and overseas.




Since inception, we have aimed to be the best in service, quality,innovation
and choice. We were the first to introduce concept of local connectivity, by
offering country specific mobile connections.








Why Matrix?

10

Global roaming costs are exorbitant.

Customer has to bear the ISD charges for all calls that you receive.

It may not be possible for customers to inform their contact personsthat
they are traveling out of the country. In effect, customers receive a lot of
unwanted calls.

Matrix provides country specific mobile connections that help save almost85%
of International Roaming charges at the same time providing all theservices
of the Network in that country.

We also provide the facility of paying in Indian Rupees. Thus, saving the
hassle of procuring a mobile connection on arrival in that country, and spending
valuable foreign exchange while clearing the mobile bills.

We act as Telecom Consultants and suggest a communication solution

which best suites a customer.


Our unique combination of low airtime rates, global coverage, and courteous
24X7 customer care and toll free number, gives us an edge inthe travel
communications industry and the choice of many businesses,
government agencies, and individual travelers.
















1.2 Current portfolio


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Our portfolio of Countries includes

United States of America
United Kingdom
Australia
Argentina
Belgium
Greece
Holland
Israel
China
Japan
Germany
Singapore
Hong Kong
Canada
France
New Zealand
South Africa







Sri Lanka
Israel
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Italy
Brazil
Thailand
Turkey
Italy
Malaysia
Mauritius
Mexico
South korea
Spain
Switzerland
Taiwan
And many more
Global sim card which works all aross the globe











1.3Matrix Clients


Following is a list of just a few of the better known clients of ours, - the list is
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ever

growing

Embassies and High Commissions

US Embassy
German Embassy
Netherlands Embassy
Embassy of Finland
Embassy of Spain
Embassy of Chile
Embassy of Iran
Embassy of Switzerland
Embassy of Austria
Korean Embassy
British High Commission
Canadian High Commission
Australian High Commission
British Council













Hotels

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Oberoi Hotels

Taj group of Hotels

Hyatt




Media

BBC

CNN

NDTV

Times of India

Hindustan Times



Organizations

U.N.O.

FICCI

CII

EPCH (Export Promotion Council of India)

CSIR

ITPO









Corporate Houses

Alvis OMC South Africa

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NR PTY Ltd, Australia

Reliance Industries

Hero Honda

Raymonds

TATA Motors

ProCall Pvt. Ltd.

Interglobe Enterprises Ltd.

British Gas

William Econer

Satya Paul

Ranbaxy


Travel Fraternity

Kuoni Travel Ltd.

Cox and Kings

Virgin Atlantic Airways

British Airways

Celebrities

AmitahabBachchan(The Actor)

Shah Rukh Khan (The Actor)

Sanjay Dutt (The Actor)

JuhiChawla (The Actress)

A.R. Rehman (The Music Director)

Farah Khan (Choreographer)

Indian Cricket Team Members
1.4 Matrix Products and Offerings




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MATRIX VOICE CARD MATRIX DATA CARD






















MATRIX FOREX CARD CURRENCY





































1.5Media Campaigns by Matrix Cellular

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Wills lifestyle fashion week 2011

Matrix Cellular announced its association with Asia's largest trade event, the
Wills Lifestyle India Fashion Week (Spring/Summer 2011) as the official
Telecom Partner for the event. Wills Lifestyle India Fashion Week is hosted by
Indias apex fashion body, the Fashion Design Council of India (FDCI)


















































Matrix Cellular, the leading service provider of international telecommunication
services, has announced its association with Kolkata Knight Riders for the
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second consecutive year as the official sponsor in the fifth season of the Indian
Premier League (IPL 2012).
The Matrix logo is on the back of the KKR jersey and the partnership will entail
a series of marketing activations and advertising campaigns to promote the
brand values. As the Official Team Partner, Matrix will be entitled to a number
of benefits besides its logo on the team jerseys. The smart and dynamic brand
will also have significant in-stadia presence during Kolkata Knight Riders
matches in the form of board branding, placards and cheer sticks in designated
stand.





























The Kolkata Knight Riders whose home games were played at Eden Garden
stadium in Kolkata featured a host of household names in 2012, including the
feisty and firm batsmen of the current era, GautamGambhir who lead the team,
South African star Jacques Kallis, one of the fastest Australian bowler Brett Lee
as well as Indian bowler/batsman Yusuf Pathan.















Association of Matrix cellular with the Kolkata Knight Riders for the second
consecutive year. With a new, smart and dynamic team this year, along with
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some of the highly experienced international players under the leadership of
GautamGambhir, the team would continue to exemplify excellence thereby
touching peoples heart and minds which goes in sync with our brand promise.

Being the most watched sports event, the Indian Premier League serves as a
lucrative platform to reach out to customers and leverage the brand at a national
as well as international level. Associating with KKR offers us the opportunity to
raise awareness about the brand as KKR is the biggest franchise, with the
largest fan following in the country.

















Kolkata knight riders won IPL 2012 and created a bench mark for their own
which increases brand visibility and brand awareness among Indian and
international audience which will directly or indirectly increases affects the
sales of the products.





























Chandigarh hockey team 2012 sponsored by matrix cellular
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Sponsoring a state team of Chandigarh may seems strange but even after being a
state of farmers. Most of Punjabis travel abroad frequently because of so many
reasons, their relatives living in abroad, sikh people wants to settle in abroad and
so on. Which give Matrix a good platform to increase the visibility of their brand.






















Golf events in Chandigarh golf club sponsored by matrix (2012)

Golf is a sport of kings. That actually means this game is played by rich/ royal
people. So sponsoring this game makes sense because this provides Matrix
brands awareness among people who visit abroad more often.



























Theater festivals sponsored by Matrix in Delhi 2010
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Habitat World presents The 6th Old World Theatre Festival which is regarded
as one of the foremost Theatre Festivals in the city with a distinct identity of its
own. Presented by Matrix Cellular the festival showcases a hand picked
selection of plays by renowned personalities ranging from Chris
BanfieldsMistakenAnnieBesant in India, RaellPadamseesRazmatazz,
ManavKaulsIllhaam etc.



















Matrix cellular also sponsors various student Pre-departures every year

The student consultants would include British Council, Study overseas. The
USEducational Foundation in India (USEFI), New Delhi organizes pre-
departure orientation programme for Indian students leaving for higher studies
in the US. The panelists provided the students with a widespread synopsis of
culture, academic environment and social life in the U.S. The sessions
attracted numerous questions on cross-cultural issues which helped students
get a clear perspective of what to expect in the US Informative presentations
were made by the sponsors including American Express, Centurion Bank of
Punjab, ICICI-Lombard General Insurance, Jet Airways and Matrix Cellular
Services informing students about currency, travel, student insurance, air
tickets and communication related options for their travel to the US Students
also participated in a cultural quiz competition and received attractive prizes
from the sponsors. Diverse sessions at the pre-departure programme provided
several valuable tips to Indian students that were aimed at smooth adaptation
to the US academic and social environment.








1.6 Advertisements done by Matrix Cellular
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Matrix has launched its latest TVC for the Matrix ForEx Cards starring Shah
Rukh Khan and key players from the Kolkata Knight Riders team. The
commercial follows Matrixs tie-up with the KKR team for Indian Premier
League Season 4 as Principle Sponsor. The TVC, created by Equus Red Cell,
was released on-air on May 19, 2011.

The TVC first attracts attention for the use of the Don theme. Swapan Seth,
Founder and CEO, Equus Red Cell, divulged that the forthcoming release of
the movie played a role in taking the Don route. In a conversation with
exchange4media, he said, We thought the theme would generate greater
curiosity. In fact, it was SRK who kindly offered it since he loved the idea and
the film.

In the ad film, SRK and his team players are arrested for killing cash. Much
like the movie, the commercial also includes a chase sequence, followed by an
interrogation, where Don and his team members speak on why cash had to
die. Sharing more on what led to the use of this thought process, Seth said,
The idea of humanising Cash was interesting. Then to create a murder, a
chase, an arrest and consequent interrogation of SRK and the KKR Knights
was all a juicy plot.

The TVC is planned to be on-air for at least another four weeks. In an earlier
conversation, Matrix officials had informed that the brand was looking at
spending around Rs 18-20 crore in the campaigns around KKR. The campaign
would be seen in print as well.

Matrix has been niche in the manner it has advertised, but associating with a
platform as large as the IPL would take the brand to a broader level of
connecting with consumers. This was the reason to partner with KKR and the
IPL in the first place, and this latest commercial is another step in that
direction for Matrix.



















1.7 Matrix Cellular launching new Television
23

Commercial on Data Services for Smart phones


Matrix Cellular Services, the leading service provider of
internationaltelecommunication services, is all set to launch its new television
commercial to apprise people about its Data Services for Smartphones.


The creative agency for the commercial is Equus Red Cell and it is produced
by Frog Unlimited. The 60 second commercial highlights the fact that Matrix
data services cost users just 1/10th the price of International Data Roaming
Charges.


Using data services such as downloading emails, browsing or using BBM on a
Smartphone while traveling abroad can be very expensive as charges as levied
on a per MB basis on International Roaming. Activating data services with a
Matrix SIM card on a Smartphone costs customers one- tenth the cost of
International Data Roaming charges that helps customers save more when
travelling abroad.


The TVC follows a conversation between two wives waiting for their husbands
at an airport with one showing the other pictures of accessories her husband has
bought her on his trip abroad. The other wife complains that despite her
husband being on a business trip abroad since past 10 days, hasnt
called/BBMed her at all primarily because of high International Roaming rates.
The first wife then informs her about the benefits of using a Matrix Cellular
SIM card while traveling abroad.


The sole purpose of this commercial is to educate people about the benefits and
savings of using Matrix Data Services on their Smartphones while traveling
abroad. Our data services allow customers to read emails, share images and
videos and use other data services such as BBM as and when they choose. We
have always believed in satisfying the changing needs of customers and we look
forward to Matrix being synonymous with International travel solutions












1.8 Need of media planning and Sponsorships

24


We've all heard the old adage 'never put all of your eggs in one basket,' and
when it comes to developing an online presence for yourself or your brand this
saying could not fit more perfectly.
While it's great to develop a strong and comprehensive website to serve as a hub
of information, it's just as important to develop a presence in different channels
so that your brand can reach as many people as possible. And while almost
every brand has a Facebook and Twitter account, many fail to take advantage
of other media-specific channels such as YouTube, Flickr and Slideshare.


The great thing about utilizing such websites is that you are placing your name
and multimedia in front of an audience of people who are already looking for it.
Users will be able to find you in the type of medium they want instead of having
to sift through general search results. These websites also make it incredibly
easy to redirect traffic to your individual site, creating an easy way to garner a
new variety of interested visitors.





































The Facts

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People are watching 2 billion videos a day on YouTube and uploading
hundreds of thousands of videos daily.

The user base is broad in age range, 18-55, evenly divided between males
and females, and spanning all geographies.

Fifty-one percent of users go to YouTube weekly or more often; 52
percent of 18-34 year-olds share videos often with friends and colleagues.
Flickr hosts more than 4 billion images.

Flickr allows you to connect with friends and family and allows you to
set special viewing privileges.

Slideshare garners 25 million visitors a month and 70 million
monthly pageviews

Slideshare allows you to share presentations, documents, and pdfs
with colleagues and interested users.



Building your presence on YouTube
As one of the most visited sites on the Internet, YouTube is a place with
unbridled opportunity. By placing your videos on the site, youre sharing your
brand and message with people who will actively seek it out. When you create
your YouTube account, you also create a user page that maintains all of your
videos in one central location making it easy for visitors to view videos in
succession.


YouTube also allows for tagging so that you can list keywords that relate to
your video and keywords that your visitors may use when searching for similar
content. By optimizing the titles of your videos and the key words and phrases
you use in your tags, youll be able to reach new visitors through search.




















26











Once you upload your videos to YouTube its easy to embed those videos on
your website creating a direct link between YouTubes services and your
website.
Other features of YouTube include:


Public or private videos: Users can elect to broadcast their videos publicly or
share them privately with friends and family upon upload.
Subscriptions: Users are able to keep track of their favorite users' new
videos.

Record from Webcam: Users with a webcam and Flash software are able to
instantly record video responses or normal videos onto the site rather than
having to prerecord and then upload the video.

Separate index on Google: When users upload videos to YouTube, these
videos are indexed separately on Google searches displaying as video
results instead of in the general results.



Building your presence on Flickr


Flickr works similarly to YouTube in that you can easily embed photos on your
website that draw from the photos on your Flickr account.


Flickrs clean and organized layout makes adding and searching for photos
easy for users and visitors alike. It also allows you to tag photos so that they
can be tied to a certain topic. Flickr also allows you to create sets of photos that
display as slideshows a feature that is particularly useful when showcasing
photos from a specific event or time period. By including rich descriptions such
as titles, tags, location, and people, you give your images context and a life of
their own.










27









Flickr also encourages users to comment on each others photos, facilitating a
sense of community amongst its users. By using Flickr, youre reaching out to
others through a channel that devotes itself to one type of media. Flickr also
offers flexible privacy controls making sharing images simple, secure, and
comfortable.


Building your presence on SlideShare
Simply put, SlideShare is the best way to get your presentations and documents
out there on the web. Its a place where you can share your ideas and learn
from the ideas of others. Users regularly comment, favorite, and download
content. And just like Flickr and YouTube, SlideShare offers an easy way to
embed their presentations on your website.












Other features of SlideShare include:

Embed slideshows into your own blog or website.

Share slideshows publicly or privately. There are several ways to
share privately.
Synch audio to your slides.
Market your own event on slideshare.
Join groups to connect with SlideShare members who share your interests.
Download the original file.







Analysis of Impact of Media campaigns

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Save time


Time is money. Especially when youre running a business. Traditional
marketing campaigns often require a huge time investment to develop and
launch. If youre looking for instant gratification for your marketing efforts,
social media is a great solution.


Setting up a social media marketing campaign can be quick and often youll see
results within days (sometimes even hours!). By making use of Facebook,
Twitter, LinkedIn, YouTube and other social media outlets, you are able to
quickly create an Internet presence and b.e connected to potential clients.

Save money

Radio, television and newspaper advertising can be costly; especially if youre
trying to create a creative and eye catching campaign. Social media, on the
other hand, is extremely inexpensive. In many instances, its even free!
Theres no cost involved in creating a Facebook page, Twitter account or
LinkedIn profile. And you can upload a video to YouTube for free.

Many companies do make the small investment of having contests and
giveaways to attract attention. However, the premiums associated with these
giveaways often cost just the fraction of the price that you would have spent in
a traditional marketing campaign.




Make smarter connections

Social media enables you to make smarter connections with potential clients.
You can be much more targeted with your efforts than with advertising and
other traditional marketing methods.

Friends often solicit each other for advice before making a purchase or enrolling in
a service. They want to utilize a company that others like them trust. On Facebook
and Twitter people are connected with others who have similar interests and needs.
Simply by getting your current clients to Like your Facebook comments and
become Fans of your Facebook page, you are becoming connected to all of
their likeminded friends.



Web Presence


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The other advantage of social media campaigns is the development of web
presence. No site gets the traffic it wants if no-one knows about it. SEO is about
attracting attention in the search engine results pages, but there are other ways to
get traffic. Your web presence is about the number of people who know you all
over the net. Social media campaigns actively spread word about your business.



Influence


This is the last advantage that occurs to most people, perhaps because it takes a
while to impact on your business. In participating regularly on a social media
network, your name gradually gets known. If your campaign has been planned
properly, your name will be linked to intelligent discussion and knowledge of
your industry. This adds up to lend your business a certain authority.

Having authority in your industry gets you lots of free publicity, influences the
number of links you receive and helps your business image. Many companies
have found that this is the biggest benefit of all from a social media campaign
and the longest-lasting. If you have acquired authority you must sustain it via
reputation management.

taking advantage of these services youre not only reaching out to followers in
a channel that they are familiar and comfortable with but youre also creating
direct links between these services and your main website.


The more a person can get involved with your company and its products and
services, the more likely it becomes that youll be able to convert them into a
customer. And, thankfully, people go onto social media sites with the sole
purpose of being active

In nut shell directly or indirectly all these media campaigns are helping an
organization to Increase the sales and their visibility of brands.

















30











































Literature Review
1.Product and Sales Analysis, Analyst-Mr. Rishi Rai, MDI GGN Nov 11

31

2.Media campaign and sales analysis, Analyst- Ms. SandhyaTugatkar,
November 11

3.Brand and Media Campaign, Analyst- Mr. AnandGovind, PSB, GGN
May 2012

4.Effect of globalization and Advertisement over sales, NSHM, GGN
Analyst- Ms. RittuBhagat March 2013.

5.Analysis of Competitor Advertisement stratagy ,Analyst- Devesh
Kumar IIMT, GGN Nov09

6.Global Sales And Advertisement,Analyst -Thakur kumarVikram,
IILM,GGN, Nov08

7.Human Resource and media campaign requirement in the growth of
manpower, Analyst Kishore Anand, J.K Business School, GGN,March
2008

8.E-Book of Research Methodology by C.R Kothari.

9.SIP Report on benchmarking the quality of services by recording the
customer satisfaction index of the existing customers By Anita Chandra
from FORE SCHOOL OF BUSINESSVasantkunj 2011-12




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3.1RESEARCH PROBLEM
Stage 1: Problem Definition

The first step in this project is to define the problem. In defining the problem, I
33

took into account the purpose of the study, the relevant background
information, what information is needed, and how it will be used in this
project.




Stage 2: Development of an Approach to the Problem

Development of an approach to the problem includes formulating an objective
or theoretical framework, analytical models, research questions, hypotheses,
and identifying characteristics or factors that can influence the research design.

Stage 3: Research Design Formulation

A research design is a framework or blueprint for conducting the research
project. It details the procedures necessary for obtaining the required
information, and its purpose is to design a study that will determine possible
answers to the research questions, and provide the information needed for
decision making.

Conducting exploratory research, precisely defining the variables, and designing
appropriate scales to measure them are also a part of the research design.

The issue of how the data should be obtained from the respondents must
be addressed. It is also necessary to design a questionnaire.

More formally, formulating the research design involves the following steps :
Data analysis
Qualitative research
Methods of collecting quantitative data (survey, observation, and
experimentation)
Definition of the information needed
Measurement and scaling procedures
Questionnaire design
Sampling process and sample size
Plan of data analysis

3.2 RESEARCH METHODOLOGY




Assumptions

34

It has been assumed that sample of 100 respondents represents the
whole population.

The information given by consumers is not biased.




Research Instrument


The research instrument used in the study was the Questionnaire. While
designing the questionnaire care has been taken in formulating and sequencing
the questions so that it allows logical thinking processes for the respondents.

Use of both close ended and open ended questions were made so the analysis
becomes easy and respondents can freely answer the question.























3.2.1RESEARCH OBJECTIVE

To find out the future opportunities of the product.

To identify Matrixs brand value and reliability.

35

To find out impact of sponsorship and media campaigns on sales.

To understand perception of customers for Matrixs Services.

To identify the hidden expectations of customers from the company.

To understand the satisfaction level of customer for international services
provided by Matrix.
























3.2.2RESEARCH DESIGN FORMULATION

A research design is a framework or blueprint for conducting the research
project. It details the procedures necessary for obtaining the required
information, and its purpose is to design a study that will determine possible
answers to the research questions, and provide the information needed for
36

decision making.

Conducting exploratory research, precisely defining the variables, and
designing appropriate scales to measure them are also a part of the research
design.

The issue of how the data should be obtained from the respondents must
be addressed. It is also necessary to design a questionnaire.























3.2.3 SAMPLING DESIGN


Large sample gives reliable result than small sample. However, it is not feasible
to target entire population or even a substantial portion to achieve a reliable
result. So, in this aspect selecting the sample to study is known as sample size.
37

Hence, for my project my sample size was 100.

The Sample Size of 120 is not enough to draw a conclusion but as per the time
assigned it was difficult to take a sample size more than 100.

This research is related to the individual customer segment. For this research
only those people who fly abroad were the target respondents.





Thus the target respondents were:-





1. Matrix Cellular services existing user individual customer.

2. Matrix Cellular services existing user corporate customer.










3.2.4 DATA COLLECTION METHOD



In this project primary data collection method has been used. The data which
is valid data, used in project is first times.
38




In this project questionnaire has been used as primary data. There are open-
ended and close-ended questions. There are some multiple choice questions as
well, For knowing the satisfaction level for Matrix cellular services




Stage 1: Execution of project





It is the very important step in the research process accuracy findings depends
on how systematically the study has been carried out in time so that it can make
some sense when required. I have executed the project after prior discussion
with the guide and structured in following steps:-

Preparation of questionnaire.

Before preparing questionnaire discussion with guides and concern
people has been done.










Stage 2: Field Work or Data Collection

Field work consist of direct interaction with clients (corporate as well as
individual). Documentation needs to be done at every connection purchased.
And all documents needs to be verified also, and Filling up questionnaire forms
by clients .

39







Stage 3: Data Preparation and Analysis

Data preparation includes the editing, coding, transcription, and
verification of data. Each questionnaire or observation form is inspected, or
edited, and, if necessary, corrected.

Number or letter codes are assigned to represent each response to each
question in the questionnaire

Verification ensures that the data from the original questionnaires have
been accurately transcribed, while data analysis, guided by the plan of data
analysis, gives meaning to the data that have been collected.

.

Stage 4: Report Preparation and Presentation

The entire project is documented in a written report which addresses the
specific research questions identified, describes the approach, the data
collection, and data analysis procedures adopted, and presents the results and
the major findings.

The findings should be presented in a comprehensible format so that they
can be readily used in the decision making process.






3.3 SCOPE OF THE PROJECT



The international travelers are increasing every year. Hence to find how
40

this information can be used from business perspective.







Even the existing clients of the company once satisfied with the services
will help the company grow as the company gets its business mainly
through references given by the clients instead of the regular
advertisements.






Its very important to keep the existing customers satisfied with the belief
that small customer will become a big customer tomorrow and a big
customer will become a bigger customer tomorrow.













41






























4.1Global Scenario

Telecommunication is among the fastest growing service in the world. In the
developed nation, with saturation demand of basic services the accent is on
42

value added services.

Developed nation are trying to augment basic services, infrastructure and also
introduce value added services. Over the past few decades most nation include
Japan, USA, UK, Singapore, and New Zealand have allowed private sector
industry in the telecom services.

Others like India, china, France and Germany are following suit.


In developing nations even international services are offered by operators but in
most developing countries overseas are controlled with competitive prices
reduction in tariff charged for overseas calls from developed nations.

At the time internet technology that is voice services via internet medium is on
rise. This enables international connectivity at the price of a local call and eats
into revenue of international carriers

In order to carry out Analysis of domestic sim operations and international sim
operations between Matrix and other cellular Companies and network
Operators, operating in India, first we have to know about the strengths,
weakness, opportunities and threats that pre dominantly exist in this sector.







4.2 S.W.O.T Analysis of International Sim Sector
Strength
Reduced calling and data cost
43

Lower service providing and hiring costs
Reduced problems regarding connectivity
Higher reliability; safe and secure communication
Customized services
Reduced services charges
Development of specialized services
Weaknesses
Highly capital-intesnsive business
Long break even period
High concentration of traffic by some service provider
Lack of coordination with abroad service providers
High dependency on external agencies
Changes in government polices
Pricing policy by Indian and Foreign Government
Opportunities
Increase in voice and data charges in the country
Growing organized sector
Increasing international sector
Developments in governments policies
Liberalization and privatization of the sector
Threats
Competition from small and huge service providers
Concentration on Domestic sim for foreign use and direct
purchase of foreign sim.






4.3 Comparison of Matrix with its Competitors


MATRIX


44

March 1995, Matrix came into existence.

Indias 1
st
company to venture into such a niche segment Country
specific Simcards

By 2007 Pan India presence.

UNICONNECT

Started in October 1996 2
nd
company to venture in this market segment.

UNICONNECT was established in 1983 as an investment vehicle,
however, eventually moved into the emerging telecom sector


CLAY TELECOM

1
st
April 2000 Clay telecom was setup.

Incepted nearly a decade ago,

Clay Telecom is a dynamic global provider of wireless telecom
solutions catering to both B2B and B2C market segments



RELIANCE COMMUNICATIONS

27 December 2002, Reliance infocomm inaugurated.

June 2008 Reliance touched 50 million mark.


Launched its Country specific sim cards business a year ago in the
name of RELIANCE PASSPORT SERVICE




BHARTI AIRTEL LTD
Ranked number#1 today in Indian mobile market.


April 2006 Bharti global limited was awarded a telecommunications
license inJersey in the channel Island.
45



Launched its Country specific sim cards business a year ago in the
name of AIRTEL WORLD Started only in Delhi & NCR regions

Matrix provides better services and rates in comparison of its
competitors














4.4 S.WO.T Matrix Cellular (Int.) Services Pvt. Ltd.
Strengths
46

Matrix hires the services from international service provider, which helps in
saving of cost and need for setup own network. Using internationalnetwork
would result in a savings of approx. Rs.100. Over the calls made from abroad
would result in a savings of approx. Rs,150. Over theinternational calling. This
would help the customer of ALL in reducing the calling cost and reduction in
money as compared to other cellular operators, moreover, Clay Communication,
Uniconnect, BhartiAirtel and Reliance Communication are also located in India,
which provides good and easy connectivity in abroad including data services.

















4.5 Affiliates of Matrix Cellular
47

























































48























4.8 RBI FEMA (Foreign Exchange Management Act)
GUIDELINES



49


For private visits abroad, other than to Nepal and Bhutan, any resident
can obtain foreign exchange up to an aggregate amount of USD 10,000 in
anyone financial year, on self-declaration basis, irrespective of the
number ofvisits undertaken during the year.
This limit of USD 10,000 or its equivalent per financial year for private
visits can also be availed of by a person who is availing of foreign
exchange for travel abroad for any purposes, such as, for employment or
immigration or studies.
For private visits abroad, other than to Nepal and Bhutan, any resident
can obtain foreign exchange up to an aggregate amount of USD 10,000 in
anyone financial year, on self-declaration basis, irrespective of the
number ofvisits undertaken during the year.
This limit of USD 10,000 or its equivalent per financial year for private
visits can also be availed of by a person who is availing of foreign
exchange for travel abroad for any purposes, such as, for employment or
immigration or studies
For business trips abroad to countries, other than to Nepal and Bhutan, a
person can avail of foreign exchange up to USD 25,000 per visit.
Release of foreign exchange exceeding USD 25,000 for business travel
abroad (other than to Nepal and Bhutan), irrespective of the period of
stay, requires prior permission from the Reserve Bank.
Travelers are allowed to purchase foreign currency notes / coins only up
to USD 3000












Approximate Number of times a person/corporate purchases Matrix
services in an year


50

Purchases

2%

8%

0 -20

15%
32%

20-40


40-60

60-80

80-100
43%





Interpretation:

The data collected was both from individual clients as well as corporate
which shows Matrix focuses on corporate more than individual clients
because the no. of clients who visit abroad 0-20 times is very less, there is
possibility that they carry their local to abroad on international roaming
rates.




Suggestions:

Matrix should do more campaigns to make people aware of Matrix as a brand.



















1.Attribute most liked about Matrix


Response
51




12%

convenience

14%
value for money



previous experience
11%
63%
personal contact













Interpretation:

Convenience is what people like about Matrix the most. Personal contacts is
playing a good part in sales, on the other hand previous hassle free experience
affects their sales on a large number.

Suggestions:

Matrix should increase customer convenience as much as they can. But value
for money is also needs to increase so that people buy matrix services for their
economic prices.



















2.Products used by Matrix clients



52


Response
4%
8%
Voice cards
20% Data cards
FOREX cards
68%
FOREX currency











Interpretation:

Earlier Matrix deals in voice cards only, which is affecting their sales till now,
the highest portion of sales is voice cards, whereas forex currency is among the
lowest. The sales of data cards is increasing but needs to increase more.




Suggestions:

Matrix should start telling their existing clients that they deal in forex cards and
currency too, because whosoever is going abroad would require currency. That
will increase the sales.
















53

3.How customer get to know about Matrix


Response




22%
News Paper


32%
Radio

0% Television Commercial

8%
Friends

Relatives

13%
25%

Office colleauges







Interpretations:

The major sector of Matrix clients are corporate so it affects the brand
awareness of matrix, people get to know about matrix mostly from their office
colleagues, newspaper plays an important role but radio doesnt .



Suggestions:

Matrix should start advertising on radio it will definitely increase the sales and
brand awareness. Tv commercials appearance also needs to increase because
Tv has vast audience.














4.Where customer find Matrix appearance the most


Response
54


3%
1%


News Paper

27%
Radio


Television Commercial
IPL Matches
58%
WEB Appearance
11%
Baners and Hordings

0%






Interpretation:

More than 50 percent people see Matrix appearance in newspapers that shows it
plays an important role in brand awareness. On the other hand banners and
hording has the least no. IPL matches and sponsoring KKR team was a
profitable decision for Matrix. Match lovers and KKR supporters must know
about matrix after IPL.




Suggestions:

Should continue sponsoring KKR and should increase the no. of TV
commercial. Banners and hording plays an important role in brand visibility
which will make people aware of Matrix as a brand so they need to work upon
it.










4.9FINANCIAL ANALYSIS

BhartiAirtel Common Size Balance Sheet
Airtel Common Size Balance Sheet
55

Particulars As at As at As at Common Size Common Size Common Size
31st March, 2009 March 31, 2010 March 31, 2011 31st March, 2009 31st March, 2010 31st March, 2011
SOURCES OF FUNDS
Shareholders Funds
Share Capital 1,89,82,398 18,988 18,988 5% 4.54% 3.36%
Reserves and Surplus 25,62,95,074 3,46,523 4,19,342 72% 82.94% 74.17%
Employee Stock Options Outstanding 19,83,331 2,839 3,694 1% 0.68% 0.65%
Less: Deferred Stock Compensation 8,24,092 978 908 0.23% 0.23% 0.16%
11,59,239 1,861 2,786 0.33% 0.45% 0.49%
Share Application Money Pending Allotment 2,933 0 0 0.00% 0.00% 0.00%
Loan Funds
Secured Loans 5,17,304 394 171 0.15% 0.09% 0.03%
Unsecured Loans 7,66,19,167 49,995 1,18,804 22% 11.97% 21.01%
Deferred Tax Liability (Net) 0 33 5,276 0% 0.01% 0.93%
TOTAL 35,35,73,182 4,17,794 5,65,367 100% 100% 100%

APPLICATION OF FUNDS
Fixed Assets
Gross Block 37,26,67,023 4,42,125 6,14,375 105% 106% 109%
Less: Accumulated Depreciation 12,25,33,438 1,61,875 2,07,367 35% 39% 37%
Net Block 25,01,33,585 2,80,250 4,07,008 71% 67% 72%
Capital Work-in-Progress 2,56,66,693 15,947 64,976 7% 4% 11%
27,58,00,278 2,96,197 4,71,984 78% 71% 83%
Investments 11,77,77,582 1,57,733 1,18,130 33% 38% 21%
Deferred Tax Asset (Net) 32,71,103 0 0 1% 0% 0%
Current Assets, Loans and Advances
Current Assets
Inventories 6,21,510 272 344 0.176% 0.07% 0.06%
Sundry Debtors 2,55,00,488 21,050 23,758 7.212% 5.04% 4.20%
Cash and Bank Balances 2,25,16,027 8,167 1,338 6.368% 1.95% 0.24%
Other Current Assets 11,97,127 664 1,015 0.339% 0.16% 0.18%
0.00%
Loans and Advances 4,44,14,947 63,146 1,03,037 12.562% 15.11% 18.22%
Total Current Assets 9,42,50,099 93299 129492 27% 22% 23%
Less: Current Liabilities and Provisions
Current Liabilities 13,11,79,816 1,22,848 1,47,963 37% 29% 26%
Provisions 63,44,004 6,587 6,276 2% 2% 1%
Total Current liabilties 13,75,23,820 1,29,435 1,54,239 39% 31% 27%
Net Current Assets -4,32,73,721 -36,136 -24,747 -12% -9% -4%
TOTAL 35,35,75,242 4,17,794 5,65,367 100% 100% 100%

BhartiAirtel Common Size Profit and Loss Account

Airtel Common Size Profit and Loss Account
Particulars For the year ended For the year ended For the year ended Common Size Common Size Common Size
March 31, 2009 March 31, 2010 March 31, 2011 March 31, 2009 March 31, 2010 March 31, 2011
56

INCOME
Service Revenue 33,99,95,752 3,55,861 3,79,924 99.96% 99.93% 99.94%
Sale of Goods 1,47,150 234 234 0.04% 0.07% 0.06%
Total Income 34,01,42,902 3,56,095 3,80,158 100.00% 100% 100.00%
EXPENDITURE
Access Charges 5,20,34,149 44,357 49,872 15.30% 12.5% 13.12%
Network Operating 6,32,68,921 74,467 85,712 18.60% 20.9% 22.55%
Cost of Goods Sold 1,24,051 203 161 0.04% 0.1% 0.04%
Personnel 1,43,36,407 15,305 14,512 4.21% 4.3% 3.82%
Sales and Marketing 2,17,63,991 24,049 31,802 6.40% 6.8% 8.37%
Administrative and Other 2,08,75,328 22,401 21,353 6.14% 6.3% 5.62%
Total Expenditure 17,24,02,847 1,80,782 2,03,412 50.69% 50.8% 53.51%
Profit before Licence Fee, Other Income,
Finance Expense (Net), Depreciation, Amortisation,
Charity and Donation and Taxation 16,77,40,055 1,75,313 1,76,746 49.31% 49.2% 46.49%
Licence fee & Spectrum charges (revenue share) 3,58,21,761 37,549 42,903 10.53% 10.5% 11.29%
Profit before Other Income, Finance Expense (Net),
Depreciation, Amortisation, Charity and Donation
and Taxation 13,19,18,294 1,37,764 1,33,843 38.78% 38.7% 35.21%
Other Income 14,07,368 897 1,129 0.41% 0.3% 0.30%
Finance Expense (net) 1,76,39,842 -8,556 1,308 5.19% -2.4% 0.34%
Depreciation 3,20,62,839 37,939 41,937 9.43% 10.7% 11.03%
Amortisation 17,88,151 2,106 4,179 0.53% 0.6% 1.10%
Charity and Donation [Rs 30,000 thousand 2,19,463 179 290 0.06% 0.1% 0.08%
Profit before Tax 8,16,15,367 1,06,993 87,258 23.99% 30.0% 22.95%
MAT credit -13,96,304 -10,386 -12,469 -0.41% -2.9% -3.28%
Tax Expense 0.00% 0.0% 0.00%
Current Tax 91,73,614 19,813 17,315 2.70% 5.6% 4.55%
Deferred Tax -39,59,059 3,304 5,243 -1.16% 0.9% 1.38%
Fringe Benefit Tax 3,58,731 0.11% 0.0% 0.00%
Profit after Tax 7,74,38,385 94,262 77,169 22.77% 26.5% 20.30%
Profit/ (Loss) Before Tax and adjustments
Transferred from Debenture Redemption Reserve 4,411 38 65 0.0013% 0.0% 0.02%
Transferred to General Reserve 60,00,000 7,100 5800 1.76% 2.0% 1.53%
Dividend Proposed 37,96,480 3,798 3,798 1.12% 1.1% 1.00%
Dividend Paid 0.00% 0.0% 0.00%
Tax on Dividend Proposed / Paid 6,45,212 645 601 0.19% 0.2% 0.16%
Profit after Appropriation 6,70,01,104 82,757 67,035 19.70% 23.2% 17.63%
Profit brought forward 11,79,72,158 1,85,028 2,67,785 34.68% 52.0% 70.44%
Profit carried to Balance Sheet 18,49,73,262 2,67,785 3,34,820 54.38% 75.2% 88.07%






Reliance Common Size Balance Sheet

Reliance Common Size Balance Sheet (in Crores)
Particulars As at As at As at Common Size Common Size Common Size
57

31st March, 2009 March 31, 2010 March 31, 2011 31st March, 2009 31st March, 2010 31st March, 2011
SOURCES OF FUNDS (%) (%) (%)
Shareholders Funds
Share Capital 1032.01 1032.01 1032.01 1.25% 1.38% 1.30%
Reserves and Surplus 50658.31 49466.88 47112.47 61.33% 65.98% 59.19%
51,690.32 50,498.89 48,144.48 62.58% 67.35% 60.49%
Loan Funds
Secured Loans 3000 3000 15226.02 7.91% 4.00% 19.13%
Unsecured Loans 27903.61 21478.28 16226.72 33.78% 28.65% 20.39%
30,903.61 24,478.28 31,452.74 37.42% 32.65% 39.51%
TOTAL 82593.93 74977.17 79597.22 100.00% 100.00% 100.00%

APPLICATION OF FUNDS
Fixed Assets
Gross Block 37941.15 39838.17 40904.17 45.94% 53.13% 51.39%
Less: Accumulated Depreciation 6533.38 9225.69 12063.27 7.91% 12.30% 15.16%
Net Block 31,407.77 30,612.48 28,840.90 38.03% 40.83% 36.23%
Capital Work-in-Progress 3643.86 1683.52 9907.66 4.41% 2.25% 12.45%
35,051.63 32,296.00 38,748.56 42.44% 43.07% 48.68%
Investments 31,364.75 31,898.60 32,102.13 37.97% 42.54% 40.33%
Current Assets, Loans and Advances
Current Assets
Inventories 253.14 298.34 306.11 0.31% 0.40% 0.38%
Sundry Debtors 1482.22 1738.63 1969.25 1.79% 2.32% 2.47%
Cash and Bank Balances 535.15 82.18 3813.21 0.65% 0.11% 4.79%
Other Current Assets 1919.38 1928.72 2110.82 2.32% 2.57% 2.65%
4189.89 4,047.87 8199.39 5.07% 5.40% 10.30%
Loans and Advances 21353.12 15958.07 10954.43 25.85% 21.28% 13.76%
25,543.01 20,005.94 19,153.82 30.93% 26.68% 24.06%
Less: Current Liabilities and Provisions
Current Liabilities 5781.49 5836.53 7551.94 7.00% 7.78% 9.49%
Provisions 3583.97 3386.84 2855.35 4.34% 4.52% 3.59%
9,365.46 9,223.37 10,407.29 11.34% 12.30% 13.07%
Net Current Assets 16,177.55 10,782.57 8,746.53 19.59% 14.38% 10.99%
TOTAL 82593.93 74977.17 79597.22 100.00% 100.00% 100.00%







Reliance Common Size Profit and Loss Account

Reliance Commom Size Profit and Loss Account (in Crores)
Particulars For the year ended For the year ended For the year ended Common Size Common Size Common Size
March 31, 2009 March 31, 2010 March 31, 2011 March 31, 2009 March 31, 2010 March 31, 2011
58

INCOME
Service Revenue and Other Operating Income 13,610.58 12,290.61 12,129.77 99% 98% 96%
Other Income 84.08 221.11 484.25 1% 2% 4%
13,694.66 12,511.72 12,614.02 100% 100% 100%
EXPENDITURE
Access Charges, License Fees and Network Expenses 7,054.74 9,017.64 9,327.66 52% 72% 74%
Payments to and Provisions for Employees 758.36 671.79 608.07 6% 5% 5%
Commission to Non Executive Directors -3.8 0.6 0 -0.03% 0.0048% 0%
Sales and General Administration Expenses 2,252.55 1,731.01 1,772.15 16% 14% 14%
10061.85 11,421.04 11,707.88 73% 91% 93%
Profit before Financial Charges, Depreciation and
Amortisation, Exceptional Items and Tax 3,632.81 1,090.68 906.14 27% 9% 7%
Financial Charges (net) 344.06 -1,058.38 178.11 3% -8% 1%
Profit before Depreciation and Amortisation,
Exceptional Items and Tax 3,288.75 2,149.06 728.03 24% 17% 6%
Depreciation and Amortisation 2,296.53 2,795.22 2,855.62 17% 22% 23%
Depreciation adjusted against Provision for Business Restructuring -363.02 -107.5 -86.39 -3% -1% -1%
Depreciation adjusted against General Reserve III 0 -1,176.48 -1,174.96 0% -9% -9%
Profit/ (Loss) before Exceptional Items and Tax 1,355.24 637.82 -866.24 10% 5% -7%
Exceptional Items 0%
Stamp Duty paid on Demerger 0 25 0.00 0% 1% 0%
Amortisation/ (write back) of Compensation under ESOP 7.47 -6.65 -6.73 0.05% 0% 0%
Revaluation of Investments -404.03 -3%
Profit on transfer of Optic Fiber Undertaking pursuant to the Scheme of Aggrangement -3,063.27 -22%
Adjustments pursuant to the Scheme of Amalgamation/ Arrangement, inter alia, for merger of Reliance Gateway Net Limited into the Company
Investments in Reliance Gateway Net Limited written off 2,096.43 15%
Equivalent amount withdrawn from General Reserve III -2,096.43 -15%
Adjustments pursuant to the Scheme of Arrangement, inter alia, for demerger of Optic Fiber Undertaking into Reliance Infratel Limited
Losses on account of change in exchange rate relating to loans/ liablities (net) 4,464.57 33%
Equivalent amount withdrawn from General Reserve III -4,464.57 -33%

Profit/ (Loss) Before Tax and adjustments 4,815.07 619.47 -859.51 35% 5% -7%
Provision for
Current Tax 0 140.54 0 0% 1% 0%
Short/(Excess) provision for tax of earlier years 0 0 -101.52 0% 0% -1%
Fringe Benefit Tax 12.4 0 0 0.09% 0% 0%
Profit/ (Loss) After Tax and before Adjustments 4,802.67 478.93 -757.99 35% 4% -6%
Investments in Global Innovative Solutions Private Limited written off 0 0 1 0% 0% 0%
Equivalent amount withdrawn from General Reserve III 0 0 -1 0% 0% 0%
Profit/ (Loss) After Tax and Adjustments 4,802.67 478.93 -757.99 35% 4% -6%
Add : Balance Brought Forward from Previous year 4,300.24 502.75 662.14 31% 4% 5%
Amount available for Appropriations 9,102.91 981.68 -95.85 66% 8% -1%
APPROPRIATIONS 0%
Transferred to Debenture Redemption Reserve 6.98 74.96 0% 1%
Transferred to/ (from) General Reserve III 8,400.00 40 -216.19 61% 0.32% -2%
Proposed Dividend on Equity Shares 175.44 103.2 0% 1% 1%
Interim Dividend on Equity Shares 165.12 1% 0%
Tax on Proposed Dividend 28.06 29.14 17.14 0% 0.23% 0%
Balance carried to Balance Sheet 502.75 662.14 0.00 4% 5% 0%



COMPARITIVE RATIO ANALYSIS OF BHARTI AIRTEL LIMITED
AND RELIANCE COMMUNICATION LIMITED


59

Liquidity Ratio

Liquidity Ratio refers to the ability of a firm to meet its short term obligations.
(i.e. obligations that will mature within the next twelve months). Such ability
comes from holding of liquid assets which are readily convertible into
cash.CURRENT RATIO

The current ratio measures whether or not a firm has enough resources to pay its
debts over the next 12 months. Potential creditors use this ratio in determining
whether or not to make short-term loans. The current ratio can also give a sense
of the efficiency of a company's operating cycle or its ability to turn its product
into cash. The current ratio is also known as the working capital ratio.

Current Ratio (CR) = (Current Assets/Current Liability)

Current Ratio
Company Name March '09 March '10 March '11
Reliance 1.45 1.37 0.96
Airtel 0.69 0.7 0.7

Current Ratio

1.6

1.4

1.2

1

0.8

0.6

0.4

0.2

0
March '09 March '10 March '11

Reliance 1.45 1.37 0.96

Airtel 0.69 0.7 0.7











Interpretation:

Reliance has seen decline in the Current Ratio over the years while Airtel has
60

been able to maintain the same ratio for past 3 years. Reliance falling ratio
accounts for increase in Current Liability from 11.34% in 2009 to 13.07% in
2012 increase in Current liability from 9,223.37 in 2010 to 10,407.29 crores in
2011including the amount payable to subsidiary, dues to small medium
enterprises etc.

Airtel has decreased its doubtful debtors that but has increased almost same
amount of short term loans, cash and bank balances have decreased and
inventory have increased over the years. Current Liabilities have also increased
to 154,239 millions in 2011. Overall in Airtel there is a similar amount of
increase in current assets and current liabilities.


QUICK RATIO

The quick ratio is a measure of a company's ability to meet its short-term
obligations using its most liquid assets (near cash or quick assets). Quick assets
include those current assets that presumably can be quickly converted to cash at
close to their book values. The ratio tells creditors how much of the company's
short term debt can be met by selling all the company's liquid assets at very
short notice.

Quick Ratio= (Current Assets- Stock- Prepaid Expenses + Advance
Tax)/Current
Liabilities

Quick Ratio
Company Name March '09 March '10 March '11
Reliance 2.7 2.14 1.81
Airtel 0.65 0.67 0.77







Quick Ratio

3

2.5

61

2

1.5 Reliance
1
Airtel


0.5

0

March '09 March '10 March '11







Interpretation: Airtel increase in quick ratio is mainly because of increase in
short terms loans and advance given to subsidiary while Reliance has taken loan
from its subsidiaries and dues to micro and small units has also in increased
year 2011 as compared to year 2010.






CASH RATIO



Cash ratio (also called cash asset ratio) is the ratio of a company's cash and cash
equivalent assets to its total liabilities. Cash ratio is a refinement of quick ratio
and indicates the extent to which readily available funds can pay off current
liabilities. Potential creditors use this ratio as a measure of a company's liquidity
and how easily it can service debt and cover short-term liabilities.

CASH RATIO = (CASH & CASH EQUIVALENTS / CURRENT LIABILITIES)

Cash Ratio
Company Name 2008-09 2009-10 2010-11
Reliance 0.025 0.006 0.191
Airtel 0.160 0.060 0.010

Cash Ratio

0.191

62

0.200
0.160



0.150


0.100

0.060

Reliance


0.050 0.025
0.006 0.010

Airtel





0.000


2008-09 2009-10 2010-11


Year


Interpretation:

Cash of Airtel has decreased from 6.368% (by the end 2009) to 0.24% (by the
end of 2011) and Current Liability has also increased in past 3 years due to
which there is a decline in Cash Ratio.


Reliance has increased its Cash and Bank Balance due to which cash ratio has
increased over the period of time. But idle cash means loss of profitability to the
company.


PROFITABILITY RATIO

Profitability represents the financial performance of a company.

NET PROFIT MARGIN

It denotes overall profitability- profit from operations as well as profit/loss
from non-operating activities.

NET PROFIT MARGIN (%) = (PAT/ Net Sales)*100

Net Profit Margin(%)
Company Name March '09 March '10 March '11
Reliance 30% 3% -5%
Airtel 23% 26% 20%









63

Net Profit Margin(%)

35%



30%



30%


26%


25% 23%
20%




20%


15%

Reliance

10%

Airtel


3%

5%



0%

-5%
March '09 March '10 March '11


-5%

-10%






Interpretation:


Due to decrease in total income and increase in Access Charges, License Fees,
Network Expenses, Depreciation, other expenditure reliances net profit margin
has declined tremendously over the years. As far as Airtel is concerned there is
an Increase in income for service revenue from 355,861 million in the year
2009-10 to 379,924 million in the year 2010-11 but increase in license fees,
depreciation, and financial charge led to decrease in net profit margin.

OPERATING PROFIT MARGIN

Operating Profit Ratio indicates profitability from a firms main operating
activities.

A higher operating profit margin implies better sales realization and effective
cost control. Given selling price, a firm can improve operating profit margin by
reducing operating cost. Operating Cost includes manufacturing, administrative,
selling and distribution costs and depreciation.

Operating Profit Margin = (Operating Profit/Sales)*100
*Operating Profit= Sales+ Stock Adjustment-Operating Costs-Short Term
interests



64

Operating Profit Margin
Company 2008-09 2009-10 2010-11
Reliance 34.66% 16.18% 12.85%
Airtel 38.74% 39.08% 35.25%













Operating Profit Margin

40.00%



35.00%



30.00%



25.00%



20.00%

Reliance

15.00%

Airtel



10.00%



5.00%



0.00%



2008-09 2009-10 2010-11


Year





Interpretation:

Airtel has performed better in controlling their expenditure only to
53% of total income in the year 2011 while Reliance expenditure has
increased from 73% of total income in 2008 to 93% of the total
income in the year 2011. Due to which operating profit margin of
reliance is decreasing and Airtel is consistent over the years.




RETURN ON EQUITY (ROE)


Return on Equity shows return to the share holders and can be
65

expressed as a percentage on net worth or as an amount per unit of
shares.

Return on Equity = (Profit after Tax/Net Worth)*100



Airtel Reliance
Return on equity Return on equity
PARTICULARS 08-09 09-10 10-11 PARTICULARS 08-09 09-10 10-11
(PAT) 77438385 94262 77169 (PAT) 4802.67 478.93 -757.99
Net worth 275277472 365511 4,38,330 Net worth 51690.32 50498.89 48144.48
Return on equity 28.13% 25.79% 17.61% Return on equity 9.29% 0.95% -1.57%
*Net Worth = Shareholders funds Miscellaneous Expenditure- Accumulated losses


Return on Equity



30.00%
28.13%
25.79%





25.00%



17.61%


20.00%




15.00%



9.29%



10.00%


0.95%

5.00%
-1.57%



0.00%




-5.00%



08-09 09-10 10-11





Reliance 9.29% 0.95% -1.57%





Airtel 28.13% 25.79% 17.61%




Axis Title







Interpretation:

Both companies has seen decline in ROE. Profit after Tax and Net wealth of
Reliance has decreased over the period of 3 years which led to the negative
return on equity in 2010-11. Similarly the Airtel has also seen decline in PAT
though there net worth has increased, still the decrease in overall percentage
of Airtel ROE is 10.52% (28.13-17.61) % and for Reliance ROE overall decrease
is 10.86% i.e. from 9.29% to -1.57%. But Airtel has maintained positive Return
on Equity while Reliance has negative ROE at the end of 2011.
66



ACTIVITY RATIOS

DEBTORS TURNOVER RATIO

It represents the number of times average dues from customers are realised.
Lower debtors turnover denotes poor collection and hence would mean that
funds remain invested for longer period.

Debtors Turnover Ratio = Net Sales/ Average Debtors

Debtors Turnover Ratio
Company Name March '09 March '10 March '11
Reliance 11.72 8.42 7.18
Airtel 12.78 15.3 16.97


Debtors Turnover Ratio

18
16.97


16


15.3


14



12
12.78

11.72



10
Reliance
8
8.42




7.18

6

Airtel



4

2

0


March '09 March '10 March '11



Interpretation:


Sundry Debtors of reliance has increased from 1.79% in the year 2008 to 2.47%
in the year 2010 which shows blockage of fund while Airtel has decreased its
debtors from 7.21% in the year 2008 to 4.20% in the year 2011. Similarly there
is an increase in Airtel income while reliance has seen decrease in its total
income in the year 2010-11 as compared to the year 2008-09. Due to which
Airtel is performing better in Debtors Turnover Ratio.
WORKING CAPITAL TURNOVER RATIO
67



The working capital turnover ratio is used to analyze the relationship between
the money used to fund operations and the sales generated from these
operations. In a general sense, the higher the working capital turnover, the better
because it means that the company is generating a lot of sales compared to the
money it uses to fund the sales.




WORKING CAPITAL TURNOVER RATIO = Net Sales / Net Working Capital

Working Capital Turnover Ratio
Company Name 2008-09 2009-10 2010-11
Reliance 0.85 1.16 1.44
Airtel -7.86 -9.85 -15.36




Working Capital Turnover

4.00
0.85 1.16 1.44

2.00



0.00

-2.00 2008-09 2009-10 2010-11

-4.00

-6.00 -7.86
Reliance
-8.00

-9.85



-10.00
Airtel


-12.00
-15.36

-14.00



-16.00

-18.00
Year





Interpretation

The fact that net working capital of airtel is in negative there working Capital
Ratio is also negative. Increase in revenue for reliance has improved its working
capital


FIXED ASSETS TURNOVER RATIO

Fixed Assets Turnover Ratio shows the productivity of fixed assets. It measures
the sales revenue per rupee of fixed assets. A fixed ratio of 2 indicates that a
68

rupee of fixed assets has generated sales of Rs. 2.

Fixed Assets Turnover Ratio=Sales/ [Net block + Capital WIP]

Fixed Asset Turnover
Company Name 08-09 09-10 10-11
Reliance 0.39 0.39 0.33
Airtel 1.23 1.2 0.81

Fixed Assets Turnover

1.4 1.23 1.2



1.2



0.81

1

0.8



0.6

Reliance

0.39 0.39
0.33



0.4

Airtel


0.2



0


08-09 09-10 10-11




Year


Interpretation

Airtel has generated Rs 0.81 of sales from a rupee of fixed assets but they have
purchased new assets due to which there has been a decline in year 2011 as
compare year 2010 while Reliance has generated Rs 0.33 of sales from a rupee
of fixed assets they also have bought new assets and increased their investment
in Capital work in progress.
LEVERAGE RATIOS

DEBT-EQUITY RATIO


Debt-Equity Ratio shows the mix of debt and equity used. Higher the ratio,
larger will be the loan component.

Debt-Equity Ratio (D/E) = (Longterm debt/Equity)

*Equity = Share capital+ Reserves and surplus Miscellaneous Expenditure-Accumulated Loses


69

Debt-Equity
Company Name March '09 March '10 March '11
Reliance 0.6 0.48 0.65
Airtel 0.28 0.14 0.27

Debt-Equity

0.7
0.6
0.65



0.6
0.48




0.5

0.4
0.28

0.27
Reliance

0.3


Airtel

0.2
0.14


0.1

0

March '09

March '10

March '11









Interpretation:


Reliance has taken secured loans of 12000 crore in the year 2010-11 and used
its reserves and surplus to write off its investment in Reliance Gateway Net
Limited due to which its debt portion has increased while Airtel has been
successfully able to decrease its secured and unsecured loan over the period of 3
years due to which it has less debt component in its capital structure as
compared to Reliance


INTEREST COVERAGE RATIO (ICR)


If Interest Coverage Ratio is less than one, it implies that a firm has negative
PAT. The entity could not earn sufficient profit to service the interest on loan in
full. It reflects poor solvency ratio.

Interest Coverage Ratio= (PAT + Interest)/Interest

Interest Coverage Ratio
Company Name 08-09 09-10 10-11
Reliance 5.98 1.43 -0.13
70

Airtel 71.86 88.85 78.56





Interest Coverage Ratio

100 88.85

90
71.86
78.56

80



70

60

50

40 Reliance
30
Airtel

20

5.98
1.43


10 -0.13



0

-10
08-09 09-10 10-11


Year







Interpretation:


Reliance declining Interest Coverage ratio accounts for increase in expenses
which is 93% of total income by the end of March 2011, due to which its PAT
is negative.

Airtel have generated enough profit to meet the interest payments over the
period of 3 years.
DEBT RATIO


Debt ratio is a ratio that indicates the proportion of a company's debt to its total
assets. It shows how much the company relies on debt to finance assets. The
debt ratio gives users a quick measure of the amount of debt that the company
has on its balance sheets compared to its assets. The higher the ratio, the greater
the risk associated with the firm's operation. A low debt ratio indicates
conservative financing with an opportunity to borrow in the future at no
71

significant risk.

Debt Ratio = Total Debt / Total Assets


Debt Ratio
Company Name 08-09 09-10 10-11
Reliance 0.37 0.33 0.4
Airtel 0.22 0.12 0.21

Debt Ratio


0.37
0.4

0.4



0.33


0.35



0.3
0.22

0.21


0.25



0.2

0.12

Reliance


0.15


0.1

Airtel



0.05

0

08-09 09-10 10-11




Year



Interpretation:

Reliance has taken more secured loans of 12000 crores from the market in the
year 2011 due to which there is an increase in debt ratio. Airtel has decreased its
secured loan but has taken unsecured loans from the market due to which there
is a increase in debt ratio but it is still less as compared to reliance.














72































5.1CONCLUSIONS AND RECOMMENDATION


Matrix Cellular International Services Ltd. (MCIS) is the leading company in
73

India to provide international country specific sim cards to customers who fly
abroad.




The company is growing rapidly as more and more people are flying abroad
every year either due to education or work or for leisure purposes. The company
is investing a lot in order to grow by putting its efforts to build a technology
driven and consumer focused.

In research it has been seen that Matrix Cellular services is an excellent service
provider and very cheap also when compared to International Roaming costs
one has to bear through service providers like Vodafone, Airtel, Etc.




The reason for people who opt for Matrixs Services is the low cost and good
connectivity along with convenience and the ease of availing the service and the
settlement of the bill. The process being entirely automated it creates a positive
impact on the customer.

Matrix was not know as a brand earlier. But now MATRIX is a very well
known brand name because of its advertisement in newspapers, media
campaigns and also after sponsoring KKR team in IPL, to increase the brand
visibility and sales matrix need to continue the same.




5.1 REFERENCE
For the purpose of preparation of the project and giving it the valuable also, a
helping hand is taken from the most precious reserve of knowledge i.e. the
books and internet.
74









Encyclopedia Article:

Wikipedia Advertising (http://en.wikipedia.org/wiki/Advertising)
Wikipedia Public Relationship(http://en.wikipedia.org/wiki/Public_relations)



Website URLs :

http://www.matrix.in/
https://www.airtel.in/
http://www.rcom.co.in/Rcom/aboutus/ir/ir_financials.html
http://www.ipl.com/
http://www.trai.gov.in/
http://in.ask.com/web?l=sem&ifr=1&qsrc=999&ad=semA&an=google_s&q=foreign%20curr
ency&siteid=3339&o=3339&ar_uid=B2949347-A4CB-47E2-A905-
24165FB15250&click_id=C27B75F7-0EAC-4509-A863-3D0CC161F3A0
http://en.wikipedia.org/wiki/Advertising
http://en.wikipedia.org/wiki/Public_relations
http://www.clay.co.in/
http://www.uniconnect.in/