Why does Satellite v 5.4 installation fail with the error 'Could not install RHN packages' ?

Issue

• Why does Satellite v 5.4 installation fail with following error ?

  [-]# ./install.pl --disconnected --re-register --skip-selinux-test
  * Starting the Red Hat Network Satellite installer.
  * Performing pre-install checks.
  * Pre-install checks complete.  Beginning installation.
  * RHN Registration.
  ** Registration: Disconnected mode.  Not registering with RHN.
  * Checking for uninstalled prerequisites.
  ** Checking if yum is available ...
  There are some packages from Red Hat Enterprise Linux that are not part
  of the @base group that Satellite will require to be installed on this
  system. The installer will try resolve the dependencies automatically.
  However, you may want to install these prerequisites manually.
  Do you want the installer to resolve dependencies [y/N]? y
  * Applying updates.
  * Installing RHN packages.
  Could not install RHN packages.  Most likely your system is not configured with the @Base package group.  See the RHN Satellite Server Installation Guide for more information about Software Requirements.  Exit value: 1.
  Please examine /var/log/rhn/rhn-installation.log for more information.