A Project on Airtel

7/28/2019 A Project on Airtel

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CHAPTER – I

INTRODUCTION

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INTRODUCTION

Airtel the biggest telecom player in Indian market in terms of

subscribers and revenue. It is operating in 20 regions of the country. From the

days of initiation Airtel maintained an image of better networking, better

consumer service in terms of CRM and a brand of high image which in other

words can be said as Airtel’s USP. In Odissa market Airtel entered in the year

of 2004 December and within three years of time it captured a lions share in

the market. In some of the major cities Airtel is a market leader. After four

years of operation in Odissa market Airtel played a game as it reduces the

margin from distributor to retailer because it got the brand loyalty from the

subscribers and succeeded with its PULLING strategy in the market also with

some highly innovative value added schemes.

In particular Bhubaneswar market the Airtel faced a great challenge after

the reduction in margin. Lots of strikes were done against company and many

retailers refused to sale Airtel’s products and this made Bhubaneswar the

toughest market in the Eastern part of the country. It put a challenge in front of

the sales team to maximize the sales. Though Airtel has 32% market share in

Bhubaneswar but it still facing tough challenge from its rivals.

Airtel Subscribers:

1. Total number of subscribers in India is 415,246,442

2. Airtel has a market share of 31.65% of total 101,114,971 GSM

customers.

3. Airtel has 23 circles in India, has agreement all over the country except

North East provision of the Country. and presently the Number 1

operator in India. in 2009. Airtel also launched in Sri Lanka.

4. Airtel started its operation in Orissa in the year of 2004, 4th Dec.

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5. Up to the latest report Airtel has a total 29, 96,023 subscribers in Orissa.

Airtel in Bhubaneswar:

Population of Bhubaneswar is nearly 7, 00,000 and 40% of this

total population uses mobile phones.

From total mobile subscribers Airtel has a market share of 32%,

having highest market share in the Bhubaneswar region.

Airtel has setup 65 BTS (towers), showing its quality and

reputation of network coverage.Over 1620 Retailers (registered up to 6th May 2009) available in

this Urban area and many more retailers’ sales Airtel vouchers

also (these are not registered). (Those retailers sale Airtel sim are

considered to be registered)

NEED OF THE STUDY

Airtel is an old & fastest growing company & leading in thecommunication market providing ever best possible service to the customers.

New & advance facilities & plans are being introduced day by day & those are

only to satisfy customers taking care of customers need.

OBJECTIVES OF THE STUDY

1. To know the distribution strategy of Airtel.2. To identify the Sales promotion tools used by the

Airtel for the retailers.

3. To know the effectiveness of sales promotion.

4. To understand the awareness of Airtel products

among retailers in the

market.

5. To create interest as well as find out the potential new retail outlets

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6. To analyze the retailer’s perception towards Airtel

7. To know the satisfaction level of retailers towards Airtel products &

services.

METHODOLOGY

Data collection:

Our study used both primary & secondary data.

Secondary Data

I have collected all the details from the FSEs and the team leader of

the PK Agency distributor.

Sources of Data

1. PK Agency team leader’s personal data.

2. Territory managers personal report behalf of exploration of business.

Primary Data

Primary data has been collected from the new retail outlets, existing outlets and

new Airtel subscribers.

Methodology

1. Meeting all the retailers (Those who are interested to sale Airtel

products).

2. Explaining about the business and how to incur profit and giving them

competitors’ feedback through one to one interaction.

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3. Creating interest to become a new Airtel outlet by showing leaflets of

different features.

4. Finding out the retailers through schedule method.

5. Convincing & creating interest through pushing strategy.

6. All the procedures were recorded through proper questionnaires.

SCOPE OF THE STUDY

By this study satisfaction as well as attitude towards the Airtel has been found

out, which can be used in strategy formulation in Bhubaneswar, Orissa.

1. Lacking & factor for dissatisfaction has been studied from Retailer point

of view which can be taken care & improved.

2. Getting an opportunity to convince & interact with the Retailers.

3. Creating awareness & finding out potential Retailers for Airtel.

LIMITATIONS OF THE STUDY

At most attention was taken to eliminate any kind of biasness & mis-

interpretation in the study to get optimum result. Even though the following

limitations could have certain degree of impact on the findings.

1. The study was confined to Bhubaneswar, PK agency only which may

not represent the real picture of the entire Bhubaneswar market.2. Many retailers were not interested in Airtel because of steep competition

in the locality among retailers.

Data collected about satisfaction & awareness level may not represent the real

picture as the sample size covered only 423 retailers.

• Type of Research: A descriptive research has been followed for the

study• Sampling technique: A cluster sampling has been used for the study .

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Sample Size:

1. Survey for Retail outlets: 423

2. Survey for New Subscribers: 862

3. Airtel special scheme promotion: 11

4. Survey for iBox and PCO: 134

SCHEDULE DESIGN

There were different question patterns were designed for individual

tasks and informal interviews were also conducted in case of new scheme

promotion. Questions those have been filled by us according to the response of

the respondents about the different questions & in the mean while their

reaction towards the different perceptions towards different communication

companies have been observed.

There are some general questions to make them comfortable to answer.

The parameters that are measured

1. Retailer reliability

2. Customer awareness

3. Customer satisfaction

4. Factor PreferenceQuestions were designed for:

1. Opening up New Retail Outlets

2. New Airtel Subscribers

Informal Interviews were followed in case of

1. Special scheme promotion

2. Selling of iBox and PCO.

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CHAPTER – II

HISTORY OF

COMPANY

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HISTORY OF AIRTEL

Bharti Tele-Ventures was incorporated on July 7, 1995 as a company

with limited liability under the Companies Act, for promoting

telecommunications services. Bharti Tele-Ventures received certificate for

commencement of business on January 18, 1996. The Company was initially

formed as a wholly-owned subsidiary of Bharti Telecom Limited. The

chronology of events since Bharti Tele-Ventures was incorporated in 1995 is

as follows:

Calendar year & Events

1995

• Bharti Cellular launched cellular services'AirTel'in Delhi

1996

• STET International Netherlands NV, or STET, a company promoted by

Telecom Italia, Italy acquired a 20% quity interest in BhartiTele-Ventures

• Bharti Telenet launched cellular services in Himachal Pradesh

1997

• British Telecom acquired a 21.05% equity interest in Bharti Cellular

• Bharti Telecom and British Telecom formed a 51% : 49% joint venture,

Bharti BT, for providing VSAT services

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1998

• Bharti Telecom and British Telecom formed a 51% : 49% joint venture,

Bharti BT Internet for providing Internet services - First Indian private

fixed-line services launched in Indore in the Madhya Pradesh circle on June

4, 1998 by Bharti Telenet thereby ending fixed-line services monopoly of

DoT (now BSNL)

1999

• Warburg Pincus (through its investment company Brentwood Investment

Holdings Limited) acquired a 19.05% equity interest in Bharti Tele-

Ventures Bharti Tele-Ventures (by acquiring a 63.45% equity interest in SC

Cellular Holdings) acquired an effective 32.36% equity interest in Bharti

Mobile (formerly JT Mobiles), the cellular services provider in Karnataka

and Andhra Pradesh circles

• New York Life Insurance Fund, or NYLIF, acquired a 3% equity interest in

Bharti Cellular

2000

• Bharti Tele-Ventures acquired an effective equity interest of 40.5% in

Bharti Mobinet (formerly Skycell Communications), the cellular services

provider in Chennai

• Bharti Tele-Ventures acquired a 30.2% equity interest of Telecom Italia in

Bharti Telenet and 18.8% from Bharti Telecom thereby making Bharti

Telenet a 100% subsidiary of Bharti Tele-Ventures

2001

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• Bharti Cellular acquired a 100% equity interest in Bharti Mobitel (formerly

Spice Cell ), the cellular services provider in Kolkata

• Bharti Tele-Ventures acquired an additional 49% equity interest in Bharti

Mobinet from Millicom International and BellSouth International, thereby

owning 89.5% equity interest in Bharti Mobinet, which was further

increased to 95.3% following an issuance of additional equity shares by

way of rights issue

2002

• Comes out with issue of 18.53 crore equity shares through book building

route with a floor price of Rs 45 per share, received bid for 18.55 crore

shares. Through the issue, it becomes the first company in India to come

out with 100% book building issue

• Issue price fixed at Rs 45 per share, floor price fixed by the company.

Raises Rs 834 crore

• Signs MoU with Telia AB to buy out their 26% stake in Bharti Mobile

2003

• Company accorded its approval for amalgamation of its subsidiary

companies viz: Bharti Telenet Ltd, Bharti Telesonic Ltd, Bharti Broadband

Networks Ltd and Bharti Comtel Ltd through scheme of Amalgamation.

The merged entity would be renamed as Bharti Infotel Ltd

• Bharti Group's cellular brand Airtel has unveiled free multimedia

messaging services (MMS) for its customers. The company has also rolled

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out pan-India GPRS (General Packet Radio Services) for its corporate

subscribers

2004

• AirTel enrolls 50,000 customers in its mobile service in 60 days

• Launches WAP enabled portal Service in Kerala

2005

• Bharti Cellular's AirTel has extended its mobile connectivity to Karaikkal,

Nagur, Mannargudi and Kovilpalayam in Tamil Nadu circle.

• AirTel launched a family pack for its post-paid customers in Chennai on

January 29. According to a press release, the family pack may have a

maximum of 10 members spread across the country. The combined basic

plan fixed charges/rental of all family members in the pack will have to be

equal to Rs 450 but less than Rs 1000 for the family 450 pack and above Rs

1000 for the family 1000 pack. The offerings under family pack 450 include

15 free mobile to mobile STD minutes within the family, 50 free local

calling minutes to each family member, calls within the family in same

circle at 50 paise per minute, 25 free local SMS and one subscription alert

service free for 3 months.

2006

• Airtel unveils Re 1 STD plans

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• Airtel launches NetXpert.

• Airtel launches Post2Pre recharging service on April 04,2006.

• Mobile service provider Airtel today announced the launch of `Save My

Phone Contact' service for its pre-paid and post-paid customers in Delhi

• Bharti Tele Ventures bags 'Wireless Service Provider of the Year' &

'Competitive Service Provider of the Year' awards

2007

• Bharti Airtel on Feb 11, has been awarded QCI-DL Shah National Award

on Economics of Quality.

• Bharti Airtel Ltd on April 01, 2007, has announced the reduction in

International Long Distance Tariffs (ISD) for all its mobile customers in

India.

• Airtel signs agreement with HTC for touch screen mobile.

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13

2008

• Bharti Airtel Limited Q3FY08 : Robust Growth – Revenue for Quarter Crosses US$ 1.75bn.

• Bharti Airtel crosses the 60 million customer mark

• Sunil Bharti Mittal Awarded Global Telecom Sector’s Highest Honour

• Airtel launches web portal airtellive.com

• Bharti Airtel partners with 15 global telecom majors to build Europe India Gateway (EIG), a cable system from India to United

Kingdom

• Bharti Airtel and Apple to Bring iPhone 3G to India

• Airtel launches Mobile Services in Lakshadweep

• Bharti Airtel to Bring iPhone 3G to India on August 22

• Airtel and HP collaborate to promote Broadband and PC Penetration

• Airtel launches services in the UK to connect NRIs to India

• Airtel makes its television debut - Set to redefine home entertainment with Airtel digital TV

• “Hello Sri Lanka” says Airtel

• Bharti Airtel Partners with VIRTELA to Strengthen International MPLS Connectivity

• Bharti Airtel wins top honours at the 7th Frost & Sullivan ICT Awards 2008

2009• Bharti Airtel and Australia Japan Cable collaborate to create a new connectivity solution to Australia from Singapore and the

US

• Bharti Airtel crosses 100 million customers mark

• Royal Government of Bhutan to partner with Airtel for fulfilling its 2013 ICT vision

• Alcatel-Lucent & Bharti Airtel appoint CEO of their managed services joint venture for broadband & telephone services

• Airtel launches m-Commerce service on Voice

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2007-2008/pg_bharti+airtel+limited+q3fy08++robust+growth++revenue+for+quarter+crosses+us+dollars+1.75bn

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2007-2008/pg_bharti+airtel+crosses+the+60+million+customer+mark

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2007-2008/pg_sunil+bharti+mittal+awarded+global+telecom+sectors+highest+honour

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2007-2008/pg_airtel+launches+web+portal+airtellive.com

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti+airtel+partners+with+15+global+telecom+majors+to+build+europe+india+gateway+(eig)%2C+a+cable+system+from+india+to+united+kingdom


http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti_airtel_and_apple_to_bring_iphone_3g_to_india_10june

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_airtel_launchesmobileservices_in_lakshadweep

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bhartiairtel_to_bring_iphone

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_airtel_and_hp_collaborate

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_airtel_launches_services_in_the_uk

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti_airtel_television_debut+

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti_hello_sri_lanka_says_airtel

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti_airtel_partners_virtela

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti_airtel_wins_top_honours

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti_airtel_and_australia_japan_cable_collaborate


http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2009-2010/pg-bharti_airtel_crosses_100_million_customers_mark

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2009-2010/pg-royal_government_of_bhutan_to_partner_with_airtel_for_fulfilling_its_2013_ict_vision

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2009-2010/pg-alcatel-lucent-bharti-airtel-appoint-ceo-of-their-managed-services-joint-venture-for-broadband-telephone-services

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2009-2010/pg-airtel-launches-m-commerce-service-on-voice

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2007-2008/pg_bharti+airtel+crosses+the+60+million+customer+mark

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2007-2008/pg_sunil+bharti+mittal+awarded+global+telecom+sectors+highest+honour

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2007-2008/pg_airtel+launches+web+portal+airtellive.com



http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti_airtel_and_apple_to_bring_iphone_3g_to_india_10june

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_airtel_launchesmobileservices_in_lakshadweep

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bhartiairtel_to_bring_iphone

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_airtel_and_hp_collaborate

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_airtel_launches_services_in_the_uk

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti_airtel_television_debut+

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti_hello_sri_lanka_says_airtel

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti_airtel_partners_virtela

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2008-2009/pg_bharti_airtel_wins_top_honours



http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2009-2010/pg-bharti_airtel_crosses_100_million_customers_mark

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2009-2010/pg-royal_government_of_bhutan_to_partner_with_airtel_for_fulfilling_its_2013_ict_vision

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2009-2010/pg-alcatel-lucent-bharti-airtel-appoint-ceo-of-their-managed-services-joint-venture-for-broadband-telephone-services

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2009-2010/pg-airtel-launches-m-commerce-service-on-voice

http://www.airtel.in/wps/wcm/connect/About%20Bharti%20Airtel/bharti+airtel/media+centre/fy2007-2008/pg_bharti+airtel+limited+q3fy08++robust+growth++revenue+for+quarter+crosses+us+dollars+1.75bn



CHAPTER – III

COMPANY PROFILE

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COMPANY PROFILE

Bharti Airtel

Type Public, Listed on BSE

Founded 1985

Headquarters New Delhi, India

Key people Sunil Mittal (Chairman and CEO)

Industry Telecommunication

Products Mobile and Fixed-Line Telecommunication operator

Revenue $6 Billion

Website www.airtel.in

Bharti Airtel , formerly known as Bharti Tele Ventures Limited

(BTVL) is India's largest and World’s third largest cellular service provider

with more than 83 million subscribers as of April 2009. It also offers fixed lineservices and broadband services. It offers its TELECOM services under the

Airtel brand and is headed by Sunil Mittal. The company also provides

telephone services and Internet access over DSL in 14 circles. The company

complements its mobile, broadband & telephone services with national and

international long distance services. The company also has a submarine cable

landing station at Chennai, which connects the submarine cable connectingChennai and Singapore. The company provides end-to-end data and enterprise

services to the corporate customers through its nationwide fiber optic

backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP

and international bandwidth access through the gateways and landing station.

SingTel owns over 30% of the Bharti Telecom. Bharti Airtel India’s largest

integrated and the first private telecom services provider in all the

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• Telecom circles. With its world class products and services, Bharti Airtel

since its inception, has been at the forefront of technology and has steered

the course of the telecom sector in the country. The businesses at Bharti

Airtel are structured into three strategic business units (SBU’s) – Mobile

Services, Telemedia Services & Enterprise Services. The Mobile business

provides mobile & fixed wireless services using GSM technology across 23

telecom circles, Telemedia Services business offers broadband & telephone

services in 94 cities. The Enterprise services provide end-to-end telecom

solution to corporate customers and additionally provide national &

international long distance services to carriers. We have recently forayed

into Media Business by launching our DTH Services in October 008. All

these services are rendered under a unified brand “Airtel”. Bharti Airtel

serves over 82mn customers as of October 31, 2008; of whom 80,199,747

subscribe to GSM services and 2,549,043 use Telemedia Services either for

voice and/or broadband access delivered through DSL. They are the largest

wireless service provider in the country, based on the number of subscribers

as of October 31, 2008. Bharti Airtel has a dominant position in the GSM

services with a market share of 34.5 % as of September 2008.

The company also deploys, owns and manages passive infrastructure

pertaining to telecom operations under its subsidiary Bharti Infratel Limited.

Bharti Infratel owns 42% of Indus Towers Limited. This has been incorporated

with an objective to provide “Shared Telecom Infrastructure” to telecom

operators across the world on a nondiscriminatory basis. It’s commitment

towards continuous innovation will enable optimization of future tower rollout

and enhance operational efficiencies and result in substantial cost savings for

its customers.

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The strategy of de-coupling infrastructure and backend processes from

the core sales and marketing function was a strategy pioneered by Airtel and

then implemented by a number of other companies. Bharti is the “total telecom

provider” for India’s large enterprises. It harnesses the power of alliances to

combine with ownership of media and technologies to create business-enabling

end-to-end solutions. Bharti work closely with their enterprise customers to

uniquely address all their strategic connectivity needs, by using a mix

application of technologies. The entire organization is tailored to bring focus to

our customers’ need through a unique multi-dimensional structure; Airtel’s’

philosophy is “Value Creation” for the customers. Therefore it creates

solutions that are flexible, scalable, robust Business process management

system which helps in monitoring of output performance of processes in the

form of Non Financial Parameters which are reviewed at different levels i.e.

Location, Regional, Functional, National and crop office level. Continuous

process improvement happens within the organization based on Voice of customers using six sigma methodology and knowledge management. The

organization has been in six sigma champions, black belt, green belts, and

yellow belts. All AES employees are trained in the strategy, statistical tools

and techniques of Six Sigma quality.

Business Strategy

“To capitalize on the growth opportunities that the company believes are

available in the Indian telecommunication market and consolidate its position

to be the leading integrated telecommunication services provider in the key

market in the India, with a focus on providing mobile services”.

•

Focus on maximizing revenues and margins.

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• Capture maximum telecommunication revenue potential with minimum

geographical coverage.

• Offer multiple telecommunication services to provide customers with a

“one-stop shop” solution.

• Position itself to tap data transmission opportunities and offer advanced

mobile data services.

• Focus on satisfying and retaining customers by ensuring high level

customer satisfaction.

• Leverage strengths of its strategic and financial partners.

Awards and recognition

Bharti Airtel has received recognition for its innovative practices across the

world, some are as follows:

• 3rd Largest Wireless Operator In The World, Largest Private Integrated

Telecom Company In India, Largest Wireless Operator In India, Largest

Private Fixed Line Operator In India, Largest Telecom Company Listed

On Indian Stock Exchanges.

• Sunil Bharti Mittal, - GSM Association Chairman’s Award 2008, Padma

Bhushan Awards In 2007.

• Airtel Was Chosen As The 2nd Most Trusted Service Brand In India In

The ‘Most Trusted.

• Brands 2008 Survey’ Conducted By The Economic Times - Brand

Equity

• Awarded With Top Honors At The GSM Mobile World Congress

Conference 2008 In Barcelona for the Category “Best Billing/ Customer

Care Solution.”

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• Adjudged As the ‘Best Carrier India‘At the Telecom Asia Award 2008,

Gallup Great Workplace Award For 2008, Ranked 2nd In the Survey of

India’s Most Respected Companies by Business world 2007, Adjudged

As ‘Company of the Year’ At the CNBC India Business Leader

Awards2007.

• Economic Times ‘Company of the Year 2007’ Award for Corporate

Excellence Gallup Great Workplace Award for 2008 -Airtel is one of the

only 20 companies worldwide and the only company from India to

receive the prestigious award.

• After the proposed network expansion, an additional 30,000 towers will

result in the company achieving 70% population coverage.

• Bharti has over 39 million users as on March 31, 2007, It has set a target

of 125 millionsubscribers by 2010. Prepaid customers account for 88.5%

of Bharti’s total subscriber base, an increase from 82.7% a year ago.

• ARPU has dropped to Rs 406, Non-voice revenues, (SMS, voice mail,

call management, hello tunes and Airtel Live) constituted 10% of total

revenues during Q4, lower than 10.7% in the Q4 of the previous year.

Blended monthly minutes of usage per customer in Q4 was at 475

minutes.Has completed 100% verification of its subscribers and in the

process disconnected three lakh(300,000) subscribers Bharti Airtel’s

enterprise Services, President - David is busy connecting India to

Europe.

Airtel Vision

“To provide global telecom services and delight customers ”By 2010, we want Airtel to be the most admired brand in India.

• Loved by more customers• Targeted by top talent• Benchmarked by more business

Airtel Mission

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We will meet the mobile communication needs of our customers through:• Error-free service delivery• Innovate products and services• Cost efficiency• Unified messaging solutions

CHAPTER – IV

PRODUCTS OFCOMPANY

20



PRODUCTS OF AIRTEL

SIM (Security Identification Module)

• The base product of company, required for new subscriber. Now Airtel

provides this sim with 64kb memory.

• The cost of sim to company is Rs 40/- with life time option. The sim is

provided to the company at free of cost which the retailer can sale at

maximum Rs 100/- .

LAPU:

A SIM is provided to retailers from the company at free of cost for

providing easy recharge service. Only regular retailers have this facility. This

SIM has a memory of 128kb and specially designed for easy recharge purpose.

A retailer has minimum 5 easy recharge customers per month, failuring this

target the SIM will be automatically deactivated. This SIM has also Rs 300

talk time free Airtel to Airtel.

• PRIMARY (The products those are supplied to the distributor from the

company is said to be Primary)

• SECONDARY(The products supplied to the Retailers from the Distributors

through FSEs is said to be Secondary)

• TERTIARY(Here the Retailer sold the products to the customers)

21





Airtel PCO scheme:

• Monthly Recharge scheme: Here the retailer has to recharge the PCO

monthly wise. The cost of the recharge voucher per month is Rs.400/- and

its validity is for 30 days. At this cost of recharge the talk time is Rs.356/-.

• Airtel also provides the facility for the one year recharge. The cost of the

recharge voucher is Rs.600/-.Though the validity period for this recharge is1 year but Airtel dose not provide any talk time on this. In this recharge

voucher the talk time is 0.Here Airtel provides Top up facility for further

recharge .The cost of the recharge is Rs 200/- , here the retailer will get a

talk time balance of Rs. 178/- where there will be free offer the retailer will

get, that is Airtel to Airtel free talk time of Rs. 500/-.

•

If the retailer will loose its recharge period then he will be unable to callthrough the PCO.A situation where there will be no connection. At this

situation the company provides a special voucher, named “Validity

extension” voucher. Here the cost of the voucher is Rs.51 and it is valid for

10days.

Promotional Offer for PCO and iBox (Coin box) during April 2009:• When any new retailer will have a new connection. At the installation cost,

he will have a talk time of Rs. 500/- as main balance valid for a month. And

will have a balance of Rs.1500/- Airtel to Airtel valid for next 6 months.

• In the month of April Airtel provided a special offer on PCO for their sales

maximization in PCO. Here the special offer is that “Reduction the in cost

of the Annual Recharge Voucher”. Before this scheme the cost of the Airtel

23



annual voucher was Rs.600/-, and during this offer the company provided

this voucher at the cost of RS. 400/-.

PCO Sales

Problems:

Stiff competition from TATA INDICOM, RIM, BSNL

TATA is preferred as it has less investment comparatively to Airtel and RIM

(All of us mobile phones so why should I install a coin box. Maintenance

problem occurs a lot with Airtel as the service provider is unable to do so.)

(The company made a calculation that if any retailer will have minimum 9

customers for PCO/iBox then retailer will reach to the break even point on his

investment. The next one will be his profit.)

(HERE DETAILS OF THE PCO & iBox IS PROVIDED.)Table: 1

iBox Pricing and PCO pricing

Parameter PCO Phone iBox

Customer Price 1984 2975

FAT(A2A) 1000 1500

FAT(A2All) 500 500Total Talk Time 1500 2000

total coin collection @ 0.67 paisa 2239 2985

effective cost to operator -240 315

Validity main A/C (months) 1 1

Validity dedicated (months) 4 6

Voucher denominations PCO section

24



Maximum Service price Rs 398 598 1398

decrement local Rs 0.67 0.67 0.67

talk time 354 532 1244

Roi % 33 33 33

validity days 30 45 60

iBox

talk time 356 178

Roi % 33 33

validity days 30 0

Operator price 400 200

Table: 2

Comparison of Airtel iBox with other operators

Parameter BSNL TATA RIM Airtel

Security deposit Y Y Y N

time hrs * 72 72 72

investment 7000 to

8000 3000 2222 lowest investment

rcv post paid paper Paper voucher easy recharge

voucher

Top ups N N n Y

Rs 100 for 10

25



validity next N days n Y

quality of

ocb na Local Local Visiontek ccb

cases soled through

service * 48 48 – 72 phone and sms

battery N Y Y Y

space

required more M M little as all

integrated

ISD in ccb N N N

Features of iBox

• 16*1 back light LCD• Inbuilt fwt + 4.5 ah battery

• Automatic coin collection on call maturity

• Programmable 1,2,3 coin options

• Network sim and bts locking provision

• Low power consumption. Battery back up 4 to 5 hrs

• Incoming call restriction

• Battery low message on lcd

• Caller id

26



PCO

1. Call charges are displayed on the screen

2. billing printer support (optional)

3. booth display support (optional)

4. daily ,monthly, yearly call reports

5. last 200 call details (date/time/value of the call)

6. limit/no limit calling mode

7. long beep at the start and end of the call

8. Internal battery with 2-3 hrs and stand by time of rs 6 hrs.

9. external adapter cum charger

10. polyphonic ring tones

11. Airtel logo and tune at the time of booting the phones.

12. hands free speaker phone13. phone book

Airtel Retail Outlet

Retail Outlet means those shops which sales Airtel products (SIM,

vouchers).Airtel maintains a category for its retail outlets. In Bhubaneswar there are total 2529 outlets which registered, 690 iBox and 230 PCO (Up to

22nd August 2009)

Airtel Navaratna:

The “Airtel NAVARATNA” award is a special way to encourage and

appreciate the retailer’s performance. This award is given to those retailers

27





b. COMPETION MARGINS ( for Urban)

OPERATOR DISTRIBUTOR RETAILER DISTRIBUTOR(PCO)

ETAILER(PCO)

Airtel 1.3 2.7 1.3 2.5

Vodafone 1.5 3

Aircel 2 5

BSNL 1.5 4

TATA 1.8 3 2

RIM 1.5 3

RTL 1.0 3

Virgin

!dea 3

(Airtel has 32% market share in Bhubaneswar market)

Airtel in Bhubaneswar Market

Number of distributor in Bhubaneswar:

In Bhubaneswar region there are total 4 distributors. (Table: 4)

Name of the Distributor Number of FSE

PK Agency 8JD Distributor 4

Kamala Agency 2

Tirupati Distributor 1

PK agency has the maximum area coverage in Bhubaneswar region. I haveanalyzed its FSE’s target and achievement.

Table: 5

29



FSE Achievement (July 09)

PK AGENCY REPORT(Airtel Distributor ,Bhubaneswar Region)

NAME Activation Revenue LSO SSO New

O/Lt PCO

Prasanna 295 99 65 0

0

Chitta 333 108 73 0

0

Ranjan 511 74 41 0

0

Prafulla 226 85 65 0

0

Ananta 182 78 51 00

Samir 95 82 44 0

0

Pradip 113 57 43 0

0

Sing 361 92 73 00

Total 2116 675 455 0

0

Total revenue earned in the month of April 2009 is Rs 1.023 core.(Exact amount not provided)

30



On 8th April 2009 !dea entered into the Bhubaneswar market and started

pushing their products. Though !dea sold at very low price with lots of

facilities with a aggressive sales force and with advertisement they started an

immediate response from new subscribers and from students this caused a

decrease in Airtel’s sales and creating new subscribers. Airtel miserably failed

to achieve their target and they achieved the 17% less than the target of

previous month March 2009. Target setup for month of May with some new

offers and aggressive selling strategy. As per the sales strategy there is a 10%

hike in each individual’s target from previous month.

Here the target for PK agency is provided bellow:

Table: 6

Current Month Target (August 2009)

PK AGENCY REPORT (Airtel Distributor ,Bhubaneswar Region)

NAME Activation Revenue LSO SSO New O/Lt PCO

Prasanna 541 1814990 119 78 20 3

Chitta 547 2037136 130 88 22 3

Ranjan 798 1584210 89 49 15 3

Prafulla 441 2048090 102 78 17 3

Ananta 391 1259201 94 61 16 3Samir 176 920727.1 98 53 16 3

Pradip 167 914150.6 68 52 11 3

Sing 557 1403274 110 90 18 3

Total 3618 11981778.7 810 549 135 24

Target for the interns during SIP (in Bhubaneswar region):

Table: 7

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Target & Achievement During SIP

NAME College NEW OUTLETS PCO iBox

Target Achieved Target Achieved Target

Achieved

Pradeepta IPE, Hyderabad 75 52 5 0 15

13

I have worked for 6 weeks

SSO locations Target Sold

SIM Sold Through Canopy (7 days) 60 94

Turning Point (7 days) 100 163

Mobile & Mobile (5days) 50 39

Jaidurga Communication (7 days) 210 287Nigam International (14 days) 480 839

Total 900 1422

SSO, It was a group task where other targets were individual

(In a weak 15 new outlets, 1 PCOs and 3 iBoxs were the target for the interns)

Minimum cost of an iBox was Rs 2975/- and cost of PCO was Rs 1975/-.

A new outlet has to take minimum vouchers of cost Rs 1000/-.

Sales of SSO were under a special scheme. (This scheme can not be mentioned

on the project report but can be discussed with internal/external Guide and at

the time of presentation)

32





then has to call 123, (Airtel customer service number (toll free)). Then the sim

will be automatically activated and will be ready to use.

Necessary Documents for New Subscription:

1. The new subscriber must have to be an Indian citizen.

2. He/She has to give one latest his/her photo.

3. Any valid document showing his nativity or residential proofs like Pass Port,

DL, Voter ID, home electricity or phone bill(land line, BSNL preferred) etc.

Actions on Fake documents:

1. If the documents are known to be fake or doubtful then the connection will

be cutoff immediately.

2. Legal action can be taken against the retailer or the distributor for this

negligence.

How to check the authenticity of the sim and the number at the

distributor/retailer level :

Sometimes the AEAF contains some error on the sim number or mobile

number. The retailer or the distributor can directly check the authenticity of

this trough special Airtel service. They can do a sms to know this. By using

this service they can get the conformation on the sim and mobile number at the basic level.

34



CHAPTER – V

DATA ANALYSIS &INTERPRETATION

35



DATA ANALYSIS & INTERPREATIONAs per the requirement the overall strategy was divided in certain categories.

1. Informal interviews were conducted for Airtel special scheme promotionand for sales maximization of iBox and PCO.

2. New subscriber analysis and new outlet opening analysis were done

through proper questionnaires.

3. The market analysis was done through informal interviews and also

information extracted from the retailers by visiting the outlet as

mysterious customers.

1. Market Analysis

In the month of April !dea came to the Bhubaneswar market with better

offers and with more talk time, free talk time at a lower cost. They have

implemented a better strategy and covered up maximum retail out lets. They

are providing the margin as per the market term (3% to retailers) ,but the most

important thing is that, they are providing Electronic boards to the outlets at

instance and spreading information rapidly among demographic dividend

about the free offers. This results a –ve growth in Airtel. As the FSE’s also

complained that the retail outlets prefer !dea and Vodafone rather than

Airtel.They were pushing !dea and Vodafone new sims rather than Airtel.

So, I did a job of Retailers analysis with a team of 3 after consulting

with territory manager and with his proper guidance.

Our objectives are

• Finding out the top (Airtel Navaranta awarded) retail outlets and also some

other outlets in the prime locations of Bhubaneswar region.

36



• Extracting information from them about “At what cost they are selling

Airtel sim.

• What the retailer prefers to sale (which sim they are trying to push out) by

what information providing to the customer

These are the thing that I have to extract from the retailers. We worked in

team covered up maximum retailers possible in the given time period (2 days)

after making a list of top retailer outlets.

Our approach towards retail out lets to extract information.

• Directly going to the shop and asking the sales person about Airtel sim cost

with life time validity and about the tariff chart of Airtel as customer.

• Meeting the shop owner and showing them as we are students of the Vani

Vihar University and doing a survey on SSO in Bhubaneswar market.

Through this way we extracted the information about the retailers’

preference. Got the information on which brand the retailer is trying to push

out.

• Going to the shop as a customer and asking for a brand of the sales person’s

choice as I need cheep network with more talk time.

(All the procedures are informal in nature, no prior questions were made a

informal approach was taken to get the information)

Suggestions after the analysis report to the Territory Manager:

•

Spread the information among public about the cost of the sim.• Put canopy and sale sim after consulting with retailers.

37



• Sale sim in coaching institutions at cost to company.

Recommendations and Actions on my suggestions:

• Put canopy in some prime locations of Bhubaneswar and selling the sim at

the cost of Rs 40/- cost to company with special recharge voucher(power

plus) of Rs 39/- which is valid for 3 months instead of 1 month.

•

Some retailers were taken into consideration and they allowed us to go withthe above proposal.

• During the promotion we are saying this offer is from the Particular Retailer

who has agreed with the proposal. That later that Retailer can have

customers and will sale the sim and voucher at this proposed scheme.

Outcomes:

• In the 4 prime locations canopy was setup for 7 consecutive days.

• 94 SIMs were sold out during this period.

• Maximum of the Sims were recharged with Rs 39/- power plus and the

retailer got a benefit of Rs. 10/- on each recharge.

Overall outcome:

• Some Sims were sold out during this period but the overall market

remained same as this project were done only for 7 days and can not be

continued for more period because of high atmospheric temp.(over 42

degree centigrade) and high humid condition in Bhubaneswar town.

38



(Details of the Analysis is provided Bellow)

Special Scheme Promotion & Analysis:

Looking at the present situation the company has made a special offer

for Orissa circle. This offer is for retailers. The main reason for this offer is to

push the retailers to sale Airtel. Airtel announced that if any retailer will be

able to sale more than 1000 sim within 90 days then that retailer will beawarded with a Hero Honda Passion Plus bike, which costs Rs. 49,000/- in the

market. The company was not going to provide any financial help or

promotional help to the retailers. The cost of a new Airtel sim with Life time is

Rs. 40/-. It is cost to the company. The retailers can sale a life time sim

maximum Rs 200/- and minimum amount that they want to sale depends upon

them. But they have to pay Rs.40/- to the company. No product sold to the

retailers in credit. So it depends upon the retailer at what price that they can

39



sale but they have to achieve that target within 90 days. They can only get the

help from Territory Manager. After this scheme the territory manager informed

the elite retailers as well as other retailers and assured them to help. In the

Bhubaneswar region 4 elite retailers at first were interested in this new scheme.

I had a task to talk to the retailers behalf of their plan how to sale the sim with

this span of time. To help them in their decision making and for their sales

promotion, distribution, helping them to sale the sim, informing public in that

locality on this scheme and to help the retailer to make their advertisement.

Finally informing the Territory manager on the retailers’ activities. With the

team, I managed to convince 4 retailers to accept this scheme. From these 4

outlets 2 were awarded with Airtel Navaranta. The pricing decision of the SIM

was taken by the retail outlet owner and with Territory, Zonal Manager. My

team was in the task of outlet’s advertisement about their offer in the near by

areas and to handle their sales for the initial days.

Strategy followed for the scheme:

Objective:

To convince maximum to maximum numbers of retail outlets to accept

this scheme.

MethodologySecondary data: The data was colleted from the Airtel head office in

Bhubaneswar. They provided all the list of top 18 retail outlets under PK Agency. These outlets are Navaratna awarded. Primary Data: Data collectedfrom all the top retail outlets. Through conducting an informal interview.Methodology:1. The entire 18 outlet’s previous 6 months sales were analyzed.2. The locations of those outlets were properly studied.3. Made one strategy how to help the retailer for their sales promotion.

40



(The Territory Manager, PK Agency staffs were cooperated and providednecessary advice for this schemes successful implementation)

Strategy followed to convince the retailers:

1. The scheme was properly informed to the retailer.

2. Company provided the guaranty of sales promotion for the retailer during

initial period.

3. Company provided the assurance to help the retailer how to implement the

scheme that the retailer will incur minimum loss and will have the maximum

profit.

Outputs of the Strategy

1. The ZSM & Territory Manager helped the retailer for their planning and

implementation.

2. The distributor provided the SIMs, documents in proper time and

collected the documents twice per day.

3. Company provided canopy to the concerned outlets that they could sale

the SIM at near by locations.

4. The company provided the help of Summer Interns to assist the outlets

for their sales promotion during initial days.

The sales promotion method started with brand name of Airtel.

Following steps are followed in the entire project.

STEPS FOLLOWED

1. Putting advertisement boards and hording near by locations and putting

some posters near by shop with their acceptance.

2. Informing coaching institutions on this offer.3. Putting Canopy from 5PM to 10 PM near by prime locations.

41



42



43



44



Analysis and interpretation of survey of new Airtel subscribers:

Objective of the study is to know the new subscribers acknowledgement

towards the preference for Airtel.

Why a customer is interested to be an Airtel subscriber?

What a new subscriber thinks about Airtel was the inherited reasons for

interpretation.

(Reason for buying a new Airtel sim)

A. COST of SIM:

Though the SIMs were sold under a special scheme, so the cost of SIM

was less compared to other outlets.61% persons agreed that they are

buying Airtel sim because the cost of the sim is very less* and this is the

only reason that they are interested not to miss a chance of buying a new

sim at this special cost with offer. Where 22% agreed that they need tosubscribe Airtel sim and 15% stand neutral. So the overall outcome

interoperated as the low cost is the main reason for the sales of SIMs.

B. Regular Uses:

From the total sample size that I had taken only 45% of them were

agreed that they will regularly use the Airtel sim and 46% said that theywill keep it and 69% of subscribers were agreed that they will have the

sim with them and will only use at the time need. From this above

analysis the outcome is that maximum of the new subscribers will keep

the sim with them and will use it when it would be needed. Only 45%

accepted that they will be a regular user of Airtel.

(Where Airtel stands as per new subscribers’ perception)

45



A. Service:

Airtel is not considered as a better back door service provider for its

subscribers in the market though it got a response of 24% (highest

response) but its near by competitors are not so far behind from it as

response for Aircel 21%, 19% for BSNL, 22% for Smart were there. So

overall interpretation is that Airtel must have to be more customer

oriented and to provide better customer care facility.

B. Network Coverage:

33% of subscribers accepted that Airtel provides the best networking in

Bhubaneswar and its near by interior areas that’s why they have to keep

a Airtel sim that they can use it at the time of need. Except BSNL (27%)

others are not a competitor of Airtel.

C. Tariff and VAS:

When this particular sector was analyzed Airtel is lagging behind

(Tariff). In the month of April 2009 !dea entered the market with lots of

offer and it was responded highly as they were providing “(New SIM

with Life Time + Rs 50 talk time + power plus(valid for 6 months) +

Unlimited free talk time !dea to !dea) @ Rs 50”. As the tariff wasconsidered Airtel got only .04% response where !dea got a response of

35%. Its overall outcome was that subscribers were not happy with

Airtel tariff as they said it very costly.

As VAS is considered Airtel is better than its comparators. Airtel got a

response of 23% but Vodafone produced a grate challenge as its

extensive and expressive promotion during this period of April and mid

May as the IPL was going on.

46



D. Availability:

In this category all the network providers were all most nearly as the

maximum responses were went to 19% against Airtel’s 17%. The

overall out come of this analysis was that either the Airtel distributors

provide more FSE or increase their salary by a small margin.

(OVERALL outcome from these analysis is that Airtel is a market leader no

doubt about it as it received 29.64% of responses. But it must have to look in

certain areas like Tariff and distribution system and customer cares to gain a

better margin than its competitors.)

Analysis for opening New Outlets

47



48



Reasons for a retailer to be an Airtel outlet

1. Demand in the market for Airtel sim and vouchers as the outlets agreed

maximum persons are asking for Airtel vouchers.

2. Maximum of the retailers also accepted that in market Airtel has

maximum number of subscribers.

3. Airtel is proving fewer margins compared to other network service

providers but most subscribers are attached with Airtel a biggest reason

for a retail outlet to start this business.

4. Many of the present outlets are not happy with the FSE as they are

providing the vouchers and other products in proper time (distribution

problem).

5. Airtel Company is trying to open more and more outlets but FSEs are

not so interested to open in a large number as their work load will be

more and they have to achieve more target.6. In some areas there is significant number of outlets that the individuals

business is affected by this steep competition.

7. Some outlets demands electronic add board but distributors are unable to

providing in time.

8. The overall outcome depends upon the “Demand in the market for

Airtel” which is driving customers towards Airtel.9. Maximum of retailers accepted that

I. Maximum numbers of working professionals are interested for Airtel.

II. Though Bhubaneswar market is full of business men they also keepan Airtel for their emergency use, not a regular use.

III. Students are not showing any interested in Airtel, very fewresponses from them.

10.Retailers agreed that Airtel is no mort pulling product.

49





Methodology:

Three different types of surveys were made and their results were

properly analyzed then I had made my strategy how to maximize the sales.

A. 50 TATA Indicom coin box & PCO holders were surveyed.

B. 34 Reliance coin box holders were surveyed.

C. 78 BSNL PCOs were surveyed.

The survey was conducted as an Informal interview process to extract

the information from the outlets.

The main purpose was to make conformation why retail outlets are

interested in Airtel iBox & PCO.

The interpretation of survey and analysis

1. TATA Indicom provides better margin. Its calling charges are less

compared to others. Better quality product and service facility is better.

It also provides life time offer.(Though it first introduced this operation so it has nearly captured the

market leaving little space for the competitors)

2. Reliance is not so famous among retailers but its profit margin is better.

3. BSNL pco holders earn maximum profit as per the retailer’s point of

view.

Reason of low sales for Airtel iBox / PCO

51



1. Less margin

2. Late entry into the market.

3. Inactive sales force.(FSEs are not so much interested to maximize this

sales)

4. Airtel PCO facing the worst competition from its competitors as only 26

PCO was in the market during last 17 moths.

5. Some retailers were interested in Airtel iBox as its profit margin is

better.

6. Because of special offer during April 2009 some iBox were sold.

7. Though Airtel is a market leader in terms of prepaid GSM service, this is

the only major reason taken to be considered for sales maximization of

Airtel iBox.

SWOT ANALYSIS

Strengths1. Bharti Airtel has more than 100 million customers. It is the largest

cellular provider in India, and also supplies broadband and telephone

services - as well as many other telecommunications services to both

domestic and corporate customers.

2. Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and

Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the

telecommunications world.

3. The company has covered the entire Indian nation with its network. This

has underpinned its large and rising customer base.

Weaknesses

52



1. An often cited original weakness is that when the business was started

by Sunil Bharti Mittal over 15 years ago, the business has little

knowledge and experience of how a cellular telephone system actually

worked. So the start-up business had to outsource to industry experts in

the field.

2. Until recently Airtel did not own its own towers, which was a particular

strength of some of its competitors such as Hutchison Essar. Towers are

important if your company wishes to provide wide coverage nationally.

3. The fact that the Airtel has not pulled off a deal with South Africa's

MTN could signal the lack of any real emerging market investment

opportunity for the business once the Indian market has become mature.

Opportunities

1. The company possesses a customized version of the Google search

engine which will enhance broadband services to customers. The tie-up

with Google can only enhance the Airtel brand, and also providesadvertising opportunities in Indian for Google.

2. Global telecommunications and new technology brands see Airtel as a

key strategic player in the Indian market. The new iPhone will be

launched in India via an Airtel distributorship. Another strategic

partnership is held with Blackberry Wireless Solutions.

3. Despite being forced to outsource much of its technical operations in theearly days, this allowed Airtel to work from its own blank sheet of

paper, and to question industry approaches and practices - for example

replacing the Revenue-Per-Customer model with a Revenue-Per-Minute

model which is better suited to India, as the company moved into small

and remote villages and towns.

4. The company is investing in its operation in 120,000 to 160,000 small

villages every year. It sees that less well-off consumers may only be able

53



to afford a few tens of Rupees per call, and also so that the business

benefits are scalable - using its 'Matchbox' strategy.

5. Bharti Airtel is embarking on another joint venture with Vodafone Essar

and Idea Cellular to create a new independent tower company called

Indus Towers. This new business will control more than 60% of India's

network towers. IPTV is another potential new service that could

underpin the company's long-term strategy.

Threats

1. Airtel and Vodafone seem to be having an on/off relationship. Vodafone

which owned a 5.6% stake in the Airtel business sold it back to Airtel,

and instead invested in its rival Hutchison Essar. Knowledge and

technology previously available to Airtel now moves into the hands of

one of its competitors.

2. The quickly changing pace of the global telecommunications industry

could tempt Airtel to go along the acquisition trail which may make itvulnerable if the world goes into recession.

3. Perhaps this was an impact upon the decision not to proceed with talks

about the potential purchase of South Africa's MTN in May 2008. This

opened the door for talks between Reliance Communication's Anil

Ambani and MTN, allowing a competing Indian industrialist to invest in

the new emerging African telecommunications market.4. Bharti Airtel could also be the target for the takeover vision of other

global telecommunications players that wish to move into the Indian

market.

Airtel comes to you from Bharti Airtel Limited, India's largest integrated

and the first private telecom services provider with a footprint in all the 23

telecom circles. Bharti Airtel since its inception has been at the forefront of

technology and has steered the course of the telecom sector in the country with

54



its world class products and services. The businesses at Bharti Airtel have been

structured into three individual strategic business units (SBU's) - Mobile

Services, Airtel Telemedia Services & Enterprise Services.

55



CHAPTER – VI

CONCLUSION &RECOMMENDATION

56



CONCLUSION

• Airtel facing a steep competition in Bhubaneswar Market. It is that

Bhubaneswar is the toughest market in the Eastern Part of the country. It is

difficult to maximize the sale as maximum consumers are local business

men and they prefer more talk time in their usual tariff.

• Airtel has a good reputation as a telecom brand in Bhubaneswar.

•

People prefer Airtel in Bhubaneswar because of its network coverage allover the state including rural areas.

• Only high tariff cost matters in sales maximization.

• Competitors selling strategy becoming a biggest problem for sales

maximization.

• Retailer benefit schemes as they achieve the target can push more

subscribers and maximize sales.

• Retailer margin is not a problem for Airtel in Bhubaneswar.

• Some retailers bringing in the Vouchers and easy from rural area to

Bhubaneswar region to get more margins comparatively to urban areas.

• Retailers are unhappy with Airtel’s advertisement offers because the

company is not providing them the Electronic Boards in time (for new

outlets), banners etc. Where others (new entrants) are doing it. So, the other

entrants are capable of pushing their sales.

57



RECOMMENDATIONS

There are following suggestions for marketing strategies for Airtel-

1. Bharti Airtel needed to maximize its future flexibility and growth

potential by adopting a business-driven framework for integration,

allowing it to implement and deliver new services rapidly. With

competition intensifying in the Indian telecom services market, Bharti

Airtel needed to find a way to focus on developing new services that

could set it apart from the competition and strengthen its customer

relationships.

2. Improved cross-selling and targeting and a more seamless, efficient

total customer experience through end-to-end integration of customer-

facing processes.

3. Optimization of business processes and infrastructure , throughflexible, standardized integration framework, is needed.

4. Outsourcing of technology will provide Bharti Airtel to focus resources

on growing the business.

Flexible pricing model will enable Bharti Airtel to avoid major increases in

capital expenditures

58



QUESTIONNAIRES

59



Questionnaires for opening new outlets

1. Are you selling Airtel’s products? (SIM: y/n) (Vouchers: y/n) (Easy

recharge: y/n)

2. (If no then) Are you interested to be an Airtel Retail Outlet? Y / N

3. (If no then) You must be aware of Airtel Business.(Requesting the retailer to

know the business)

If I got a positive response then: Complete information provided on

Airtel business

If no: Requested for another time if there is no response I have to leave

that outlet.

4. If interested for then : Complete information provided on Airtel business

(If the outlet shows interest for the business. At 1st the information

regarding the business provided to the retailer in details and after that

this questions were asked to analyze why these retailers are showing

interest in this business)

5. Do you think Airtel provides less margin compared to other service

providers.

A N Dis

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6. Do you think maximum people are asking for Airtel?

A N Dis

7. Do you know that Airtel has maximum numbers of customers in

Bhubaneswar market? Y/N

8. Are you satisfied with Airtel distributor’s service procedure?

9. Are you happy with FSE’s service? A/N/Dis

10. Do you think is it easy to push Airtel. A/Dis

11. Does the customers ever pulled towards Airtel, Airtel is

PUSHING/PULLING

12. I am not interested with Airtel because

Low margin: A / N / DisUnsatisfied with FSE: A / N / DisSo many retail outlets near by : A / N / Dis

No credit facility:A / N / DisAirtel does not provide Add boards or support regarding advertisements intime: A / N / DisSelling Vodafone !dea, RIM, Smart, BSNL is more profitable.

13. I am only interested for sim / lapu / vouchers only in coming period.Why…_______________________________________________________

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Questionnaires for New SIM holders :

While selling new SIM I did a comparative analysis on differentnetwork service providers regarding customer interest. It was also required for

my project under market analysis “why one buy Airtel”.

A few questions were asked to new SIM buyers.

Questions:

Rate from 1 to 5. Where 5 are minimum and 1 is the maximum value.

(Ranking methodology)

1. Are you buying now because:

a. SIM cost is very less comparatively with other ones?

b. I will use this SIM regularly.

c. I will keep it for future purpose.

d. I will use it only at the time of need, not regularly.

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Appendix-C

Questionnaires for Outlets to accept the scheme ( Airtel Company’s staff

will help you in sales promotion and pricing?)

(1st the scheme was properly presented to the retailer)

1. In which sells you get maximum profits. ---------------------

2. Is any telecom company providing you any offer like this before or now?

Yes/no:------------------

3. Airtel ever before provide you any offer. Yes/no:-----------------------

5. (If yes) did the company employees help you in sales promotion?Yes/no:

-------------------------

5. I have accepted this scheme because:--------------------------

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BIBLIOGRAPHY

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BIBLIOGRAPHY

Books

1. Havalder K.K. and Vasant M.C. (2007), “ Sales and Distribution

Management”, Tata McGraw Hill, New Delhi

Websites:

1. www.airtel. co.in

2. www.wikipedia.com

3. www.google.com

http://www.wikipedia.com/

http://www.wikipedia.com/

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