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    ACKNWOLEDGEMENT

    The project comes directly from my heart with sincere dedication, devotion and

    efforts. I would also like to express my deepest gratitude towards those whose

    help and contribution cannot be appraised.

    I also take the opportunity to thank Mr. Mithun Bhonsle, Area Manager,

    BHARTI AIRTEL, Goa unit, without whose help and guidance I would not have

    been able to complete my project.

    I would also like to express my sincere gratitude to our faculty guide who

    helped me in solving the problems and difficulties and in completing the

    project.

    I would also like thank all the Managers, Executives, Supervisors, and

    Workers of the company who provided me relevant information in spite of their

    busy work schedule.

    2

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    DECLARATION

    I hereby declare that this integrated live project entitled BHARTI AIRTEL is

    my work, carried out under the guidance of my faculty and my company guide

    Mr.Anoop Das. This live project report neither full nor in part has ever been

    submitted for award of any degree of either this college or any other college.

    3

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    CERTIFICATE

    Certified that this project report is a record of work done by the candidate

    himself during the period of study under faculty Guidance and that to the best

    of my knowledge it has not previously formed the basis of the award of any

    degree or Diploma in ICFAI University or elsewhere.

    __________________

    (Faculty guide)

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    INDEX

    1 INDUSTRY PROFILE 6

    2 COMPANY PROFILE 7

    3 OBJECTIVE 9

    4 LIMITATION 10

    5 CHP-1) CASH MANAGEMENT 11

    6 CHP-2) PERFORMANCE APPRAISAL 16

    7 CHP-3) PRICING POLICY 23

    8CHP-4) LEGAL ENVIRONMENT

    26

    9 CHP-5) BRANDING AND PRODUCT RANGE 29

    10 CHP-6) FINDINGS AND ANALYSIS 40

    11 CONCLUSION 49

    12 BIBLOGRAPHY 51

    13 ANNEXURE 52

    14 ABBRIVIATION 53

    5

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    INDUSTRY PROFILE

    Telecommunications industry in India

    The telecommunications industry is growing at a very rapid pace in India. Also

    India is one of the fastest growing telecom markets in Asia. India is the 4 th

    largest telecom market in Asia. The telecom Market consists of mobile

    phones, cellular service providers, and broadband network.

    The telecommunications industry has undergone a lot of change in the last 2

    decades. From deregulation to privatization to telecom services, to

    liberalization of Indian telecom policies, increase in competition, introduction of

    new technologies like black berry phones, and internet and convergence of

    technologies. Since the telecom industry is growing at a rapid pace, Bharti

    School of telecom has been dedicated to the country.

    This telecom revolution has contributed enormously to increased efficiency in

    the economy. It has reduced transaction costs. It has increased connectivityacross the length and breadth of our vast subcontinent. It has brought Indians

    closer to each other. The telecom sector is driving today the growth of both

    incomes and employment. Indeed, this growth is creating new business and

    new employment opportunities. India has emerged as a major base for the

    telecom industry worldwide and we intend to facilitate the further growth of this

    vital industry.

    Also new players like Vodafone, one of the leading telecom companies in the

    world have entered the Indian telecom market.

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    COMPANY PROFILE

    BHARTI AIRTEL LTD An Overview

    Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The

    Bharti Group, has a diverse business portfolio and has created global brands

    in the telecommunication sector. Bharti has recently forayed into retail

    business as Bharti Retail Pvt. Ltd.

    Airtel comes to you from Bharti Airtel Limited, Indias 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 its world

    class products and services.

    Bharti Airtel is one of India's leading private sector providers of

    telecommunications services based on an aggregate of 57,341,120 customers

    as on December 31, 2007, consisting of 55,162,944 GSM mobile and

    2,178,176 broadband & telephone customers. Bharti Airtel crosses the 60

    million customer mark .

    The businesses at Bharti Airtel have been structured into three individual

    strategic business units (SBUs) - mobile services, telemedia services (ATS) &

    enterprise services. The mobile services group provides GSM mobile services

    across India in 23 telecom circles, while the ATS business group provides

    broadband & telephone services in 94 cities. The enterprise services group

    has two sub-units - carriers (long distance services) and services to

    corporates. All these services are provided under the Airtel brand.

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    http://www.bhartiairtel.in/index.php?id=278&tx_ttnews%5Btt_news%5D=634&tx_ttnews%5BbackPid%5D=18&cHash=777530248bhttp://www.bhartiairtel.in/index.php?id=278&tx_ttnews%5Btt_news%5D=634&tx_ttnews%5BbackPid%5D=18&cHash=777530248bhttp://www.bhartiairtel.in/index.php?id=278&tx_ttnews%5Btt_news%5D=634&tx_ttnews%5BbackPid%5D=18&cHash=777530248bhttp://www.bhartiairtel.in/index.php?id=278&tx_ttnews%5Btt_news%5D=634&tx_ttnews%5BbackPid%5D=18&cHash=777530248b
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    The company has a strategic alliance with SingTel. The investment made by

    SingTel is one of the largest investments made in the world outside

    Singapore, in the company.

    The companys mobile network equipment partners include Ericsson and

    Nokia. In the case of the broadband and telephone services and enterprise

    services (carriers), equipment suppliers include Siemens, Nortel, Corning,

    among others. The Company also has an information technology alliance with

    IBM for its group-wide information technology requirements and with Nortel for

    call center technology requirements. The call center operations for the mobile

    services have been outsourced to IBM Daksh, Hinduja TMT, Teletech &

    Mphasis. Bharti Airtel is the only Indian company in the top 10 list. Bharti Airtelhas ranked ahead of companies like Motorola (Rank 11), Google (Rank 13),

    Microsoft (Rank 37), Hewlett Packard (Rank 44) and Oracle (Rank 51)

    The mobile business provides mobile & fixed wireless services using GSM

    technology across 23 telecom circles while the B&T business offers

    broadband & telephone services in 94 cities.

    Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. undera MoU with Wal-Mart for the cash & carry business. It has successfully

    launched an international venture with EL Rothschild Group to export fresh

    agri products exclusively to markets in Europe and USA and has launched

    Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world

    leader in financial protection and wealth management The companys mobile

    network equipment partners include Ericsson and Nokia. In the case of the

    broadband and telephone services and enterprise services (carriers),

    equipment suppliers include Siemens, Nortel, Corning, among others. The

    Company also has an information technology alliance with IBM for its group-

    wide information technology requirements and with Nortel for call center

    technology requirements. The call center operations for the mobile services

    have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis.

    8

    http://www.singtel.com/http://www.singtel.com/
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    OBJECTIVE

    To study concept cash management in the company.

    To study performance appraisal system in the company.

    To study the concept pricing policy of the company.

    To study the concept of political and

    To study the concept of branding and product range .

    Findings and analyzing on the survey coducted .

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    LIMITATIONS

    A major limitation of this study is that it is very difficult to contact

    the concerned person as it was difficult to fix appointments with

    them due to their busy schedules due to which the true information

    cannot be revealed.

    Retailers were not ready to respond to the questionnaire as they had

    tie ups or contracts with other service providers and thus refused to

    entertain.

    Survey was restricted to customers in Goa region only.

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    CASH MANAGEMENT

    Objective: To study the Cash management of Bharti Airtel

    Cash, the most liquid asset and also referred to as the life blood of a business

    enterprise is of vital importance to the daily operation of business firms. Its

    efficient management is crucial to the solvency of business because cash is

    the focal point of the fund flows in a business.

    There are two ways of viewing the term cash. It includes actual cash in the

    form of notes and coins and bank drafts held by a firm and the deposits

    withdraw able on demand. It also includes marketable securities which can be

    easily sold or converted into cash.

    Need for Cash Management

    Cash in hand or at bank is the most liquid of all the current assets. Thus largercash and bank balances indicate high liquidity position of a company. Why do

    companies hold cash? This is an important question to deal with. Different

    reason for holding cash are given as

    Transaction Motive: Airtel has post paid and prepaid connection. If the

    customers uses post paid connection then sum amount is charged as service

    charges to the customer by the company but when the bill is given to the

    customer then there is always a chances that the customer dont pay the bill

    which some time incurs loss to the company, entering into transactions with

    other entities. Transaction means either buying or selling of different products.

    While some of these transactions may not result in immediate inflow/outflow of

    cash (example credit purchases and sales), while other transactions cause

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    immediate cash inflow and outflows. Therefore this company always keeps a

    certain amount as cash to deal with routine transactions where immediate

    payment is required.

    Precautionary Motive: Contingencies may crop up when they are least

    expected to occur. A sudden fire may break out, accidents may happen,

    creditors may present bills earlier than expected or debtors may make

    payments later than warranted. For all such surprises Bharati Airtel co is

    always prepared so as to minimize losses. And therefore this company

    maintains certain amount in the form of cash.

    Speculative Motive: companies also maintain cash balances in order to take

    advantages of opportunities that do not take place in the course of routine

    business activities. Say suppose there may be sudden decrease the rental

    charges of postpaid connection which is not expected to last long. These are

    the transactions which are speculative in nature and for which the company

    needs cash.

    Objectives of Cash Management

    The objective of cash management can be regarded as one of making of short

    term forecasts of cash position, finding avenues for financing during periods

    when cash deficits are anticipated and arranging for repayments during

    periods when cash surpluses are anticipated with a view to minimizing idle

    cash as far as possible. Some of the objectives of cash management are as

    follows

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    Cash Forecasting and Budget: it is very important for Bharati Airtel to carry

    out proper forecasting for future cash requirements which may be because of

    different costs associated with the business proceedings, The stocks are

    required to meet the customer requirements as when demanded. Short-term

    forecasting is prepared under the receipt and payment method, showing the

    time and magnitude of expected cash payments and receipts.

    Preparing Cash Reports: cash budgets are nothing but short-term cash

    forecasts. Sometimes the cash inflows and outflows of Bharti Airtel company

    remains stable it doesnt fluctuate. In such cases the monthly report is

    produced, while sometimes the cash inflows/outflows fluctuate. In such cases

    the weekly or even daily reports are also produced.

    Factors for Efficient Cash Management

    Cash reports help in monitoring actual data for comparison with the budgeted

    amounts, understanding the reasons for deviation the two and controlling and

    revising the budget on regular basis. The efficiency of cash management can

    be enhanced considerably by keeping a close watch and controlling a few

    important factors.

    Prompt Billing and Mailing: soon after the connection is provided to

    the customers, a time lag occurs from the date of connection to the date

    of preparing invoice documents and mailing them to the

    customers.Bharati Airtel stresses constantly to reduce this time gap

    because this can cause early remittances. Thus accelerating the

    process of preparing and mailing bills will help reduce the delay in

    remittances and early realization of cash.

    Collection of Cheques and remittance of Cash: delay in the receipt

    of cheques and depositing the same in the bank will inevitably result in

    delayed cash realization. Bharati Airtel reduced these delays by

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    improving the process of collecting and depositing cheques/cash from

    customers. This done by careful monitoring the process.

    Investment of Surplus Cash: surplus cash is used by the company people to

    invest in certain securities, shares, etc.

    Insurance Control:

    Some attention should be given towards the protection of the companys

    assets. So the insurance component is very important for the company.

    Therefore the company deploys some of its funds (required cash) into

    insurance policies.

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    PERFORMANCE APPRAISAL

    Performance appraisal, also known as employee appraisal, is a method

    by which the performance of an employee is evaluated (generally in terms

    of quality, quantity, cost and time). Performance appraisal is a part of

    career development.

    Performance appraisals are a regular review of employee performance

    within organizations.

    Generally, the aims of a scheme are:

    Give feedback on performance to employees.

    Identify employee training needs.

    Document criteria used to allocate organizational rewards.

    Form a basis for personnel decisions: salary increases, promotions,

    disciplinary actions, etc.

    Provide the opportunity for organizational diagnosis and

    development.

    Facilitate communication between employee and administrator.

    Validate selection techniques and human resource policies to meet

    federal Equal Employment Opportunity requirements.

    The most popular methods that are being used as performance appraisal

    process are:

    Management by objectives (MBO) 360 degree appraisal

    Behavioral Observation Scale (BOS)

    Behaviorally Anchored Rating Scale (BARS)

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    http://en.wikipedia.org/wiki/Performancehttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Quantityhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Career_developmenthttp://en.wikipedia.org/wiki/Management_by_objectiveshttp://en.wikipedia.org/wiki/360-degree_feedbackhttp://en.wikipedia.org/wiki/360-degree_feedbackhttp://en.wikipedia.org/wiki/Performancehttp://en.wikipedia.org/wiki/Employeehttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Quantityhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Career_developmenthttp://en.wikipedia.org/wiki/Management_by_objectiveshttp://en.wikipedia.org/wiki/360-degree_feedback
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    The following is the performance form:

    PERFORMANCE APPRAISAL FORM

    FOR THE PERIOD _______________________ TO

    __________________________

    Name of Employee: Based at:

    Designation: Present Grade / CTC:

    Length of service in the org: Total years of experience:

    Emp. Code No. Appraiser:

    (To be filled in by Head Office)

    Appraisee to complete and return to the appraiser by:

    SECTION A

    Please evaluate your job performance by checking the appropriate box

    next to each attribute, according to the following scale:

    (NI = needs improvement; S = satisfactory; G = good; VG = very good; E excellent

    NA = not applicable)

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    ATTRIBUTES NI S G VG E NA

    Efficiency of work (qualitative, quantitative andknowledge)

    Meets job requirements on time, able to work under pressure

    Completes assignments with accuracy & thoroughness,Demonstrates professional, administrative, supervisory, and /

    or specialized knowledge required to perform the job.

    Cooperation

    Gets along well with colleagues ,Willing to assist others,shows courtesy and effectiveness in dealing with others

    Judgment

    Makes good job-related decisions, Develops alternative

    solutions & recommendations, Selects proper course of

    action & understands impact of decisions and actions

    Attendance

    Reports for work consistently and punctually, Uses company

    time conscientiously.

    Planning & Organizational effectiveness

    Meets deadlines , Manages resources, Effectively balances

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    tasks and priorities , Handles tasks in an organized andefficient manner , Able to handle multiple tasks

    simultaneously & makes effective use of time.

    Communication

    Keeps manager / supervisor informed of work progress,Effectively conveys information and ideas to others , Clarity

    of oral & written communication.

    Integrity

    Represents self and situations honestly; Understands and

    maintains confidentiality

    ATTRIBUTES NI S G VG E NA

    Initiative and creativity

    Resourceful and creative in meeting job objectives ,

    Demonstrates a self-starter- attitude , Follows through onassignments , Initiates or modifies ideas, methods or

    procedures to meet changing circumstances or requirements.

    Dependability

    Can be depended on to carry out assignments with careful

    follow up , Is able to overcome obstacles to meet goals ,Assumes responsibilities and ensures tasks are followed to

    completion.

    Interpersonal relationships

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    Maintains a positive work relationship / attitude with

    colleagues and management , Listens effectively, Is a teamplayer, Participates with others to accomplish tasks,

    Accepts constructive criticism positively

    Productivity

    Work completion is consistently high , Can be counted onfor extra efforts to meet the goals of the organization ,

    Makes effective use of available resources to accomplishtasks.

    Flexibility

    Adapts well to changes , Accepts new ideas and approaches

    to work , Responds appropriately to criticism and tosuggestions for work improvement

    Supervisory ability

    Applies sound practices in executing supervisory

    responsibilities , Demonstrates skill in arousing interest andenthusiasm in subordinates , Effectively selects and

    develops personnel

    Overall Rating

    This is to rate overall performance taking into account allthe above attributes

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    SECTION B

    Are there any problems outside your control which have reduced

    your ability to do your job?

    Are there any other aspects not noted elsewhere or any other issues

    outside this appraisal that you would like to discuss / comment

    upon?

    Would you like to offer any suggestions or comments to your

    supervisor / management that would help the organization grow,prosper and achieve its goals?

    SECTION C

    To be completed after the appraisal, with the supervisor / manager.

    To be completed during the appraisal by the appraiser / supervisor

    - where appropriate and safe to do so, certain items can completedby the appraiser before the appraisal, and then discussed and

    validated or amended in discussion with the appraisee during theappraisal.

    SECTION A

    With reference to the criteria in self appraisal Section A, rate theappraisees capability / attributes in the following areas in terms of their

    current (and if applicable, next) role requirements.(NI = needs improvement; S = satisfactory; G = good; VG = very good; E =

    Excellent;NA = not applicable)

    ATTRIBUTES NI S G VG E NA

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    Efficiency of work (qualitative, quantitative &knowledge)

    CooperationJudgment

    Attendance

    Planning / Organizational effectiveness

    Communication

    Initiative and creativity

    Dependability

    Attitude and Interpersonal relationships

    Productivity

    Supervisory ability

    Overall rating

    SECTION B

    Compare & discuss the self appraisal entries in Section B. Note down

    comments and recommendations as applicable.

    SECTION C

    To be completed by the employee being reviewed:

    I have read the comments / reviews noted by my appraiser and:

    I agree with them

    I agree with them and wish to add the following points.

    I do not agree with them for the following reasons:

    Employees Signature:Date:

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    To be completed by the appraiser / supervisor:

    I have read and noted the completed section above:

    Appraisers Signature:Date:

    FINAL COMMENTS BY MANAGEMENT

    Airtel does annual Performance appraisals which are essential for the effective

    management and evaluation of staff. Appraisals help to develop individuals,

    improve organizational performance, and feed into business planning,Thus

    airtel gives recognitions and rewards to the employee which in turn motivates

    the employees and the employees take initiative in their work.

    Airtel provides Formal performance appraisals which are generally conducted

    annually for all staff in the organization. Each staff member is appraised by

    their line manager. Directors are appraised by the CEO, who is appraised by

    the chairman or company owners.

    Annual performance appraisals enable management and monitoring of

    standards, agreeing expectations and objectives, and delegation of

    responsibilities and tasks. Staff performance appraisals also establish

    individual training needs and enable organizational training needs analysis

    and planning.

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    PRICING POLICYEconomics a science that studies allocation of scarce resources by humans

    in the world of unlimited needs.

    The term economics comes from the Greek for oikos (house) and nomos

    (custom or law), hence "rules of the house (hold)."[1]

    A definition that captures much of modern economics is that of Lionel Robbins

    in a 1932 essay: "the science which studies human behavior as a relationship

    between ends and scarce means which have alternative uses. Scarcity means

    that available resources are insufficient to satisfy all wants and needs. Absent

    scarcity and alternative uses of available resources, there is no economic

    problem. The subject thus defined involves the study of choices as they are

    affected by incentives and resources.

    Areas of economics may be divided or classified into various types, including:

    microeconomics and macroeconomics

    positive economics ("what is") and normative economics ("what ought

    to be")

    mainstream economics and heterodox economics

    Fields and broadercategories within economics.

    One of the uses of economics is to explain how economies, as economic

    systems, work and what the relations are between economic players (agents)

    in the larger society. Methods of economic analysis have been increasingly

    applied to fields that involve people (officials included) making choices in a

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    http://en.wikipedia.org/wiki/Greek_languagehttp://d/ppp/Economics.html#_note-etymology#_note-etymologyhttp://en.wikipedia.org/wiki/Lionel_Robbinshttp://en.wikipedia.org/wiki/An_Essay_on_the_Nature_and_Significance_of_Economic_Science#Major_propositionshttp://en.wikipedia.org/wiki/Scarcityhttp://en.wikipedia.org/wiki/Resource_(economics)http://en.wikipedia.org/wiki/Economic_problemhttp://en.wikipedia.org/wiki/Economic_problemhttp://en.wikipedia.org/wiki/Rational_choice_theoryhttp://en.wikipedia.org/wiki/Microeconomicshttp://en.wikipedia.org/wiki/Macroeconomicshttp://en.wikipedia.org/wiki/Positive_economicshttp://en.wikipedia.org/wiki/Normative_economicshttp://en.wikipedia.org/wiki/Mainstream_economicshttp://en.wikipedia.org/wiki/Heterodox_economicshttp://en.wikipedia.org/wiki/JEL_classification_codeshttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Agent_(economics)http://en.wikipedia.org/wiki/Greek_languagehttp://d/ppp/Economics.html#_note-etymology#_note-etymologyhttp://en.wikipedia.org/wiki/Lionel_Robbinshttp://en.wikipedia.org/wiki/An_Essay_on_the_Nature_and_Significance_of_Economic_Science#Major_propositionshttp://en.wikipedia.org/wiki/Scarcityhttp://en.wikipedia.org/wiki/Resource_(economics)http://en.wikipedia.org/wiki/Economic_problemhttp://en.wikipedia.org/wiki/Economic_problemhttp://en.wikipedia.org/wiki/Rational_choice_theoryhttp://en.wikipedia.org/wiki/Microeconomicshttp://en.wikipedia.org/wiki/Macroeconomicshttp://en.wikipedia.org/wiki/Positive_economicshttp://en.wikipedia.org/wiki/Normative_economicshttp://en.wikipedia.org/wiki/Mainstream_economicshttp://en.wikipedia.org/wiki/Heterodox_economicshttp://en.wikipedia.org/wiki/JEL_classification_codeshttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Agent_(economics)
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    social context, such as crime, education, the family, health, law, politics,

    religion, social institutions, and war.

    Pricing Policy

    The simplest way to set price is through uniform pricing. At the profit-

    maximizing uniform price, the incremental margin percentage equals the

    reciprocal of the absolute value of the price elasticity of demand. The most

    profitable pricing policy is complete price discrimination, where each unit is

    priced at the benefit that the unit provides to its buyer. To implement this

    policy, however, the seller must know each potential buyers individual

    demand curve and be able to set different prices for every unit of the product.

    The next most profitable pricing policy is direct segment discrimination. For

    this policy the seller must be able to directly identify the various segments. The

    third most profitable policy is indirect segment discrimination. This involves

    structuring a set of choices around some variable to which the various

    segments are differentially sensitive. Uniform pricing is the least profitable wayto set a price.

    A commonly used basis for direct segment discrimination is location. This

    exploits a difference between free on board and cost including freight prices. A

    commonly used method of indirect segment discrimination is bundling. Sellers

    may apply either pure or mixed bundling.

    Types of pricing policy

    Uniform Pricing

    Uniform pricing: a pricing policy where a seller charges the same price for

    every unit of the product

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    http://en.wikipedia.org/wiki/Family_(economics)http://en.wikipedia.org/wiki/Health_economicshttp://en.wikipedia.org/wiki/Law_and_economicshttp://en.wikipedia.org/wiki/Public_choicehttp://en.wikipedia.org/wiki/Institutional_economicshttp://en.wikipedia.org/wiki/Family_(economics)http://en.wikipedia.org/wiki/Health_economicshttp://en.wikipedia.org/wiki/Law_and_economicshttp://en.wikipedia.org/wiki/Public_choicehttp://en.wikipedia.org/wiki/Institutional_economics
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    Price discrimination.

    Pricing policy where a seller sets different incremental margins on various

    units of the same or similar products.

    Complete price discrimination:

    The pricing policy where a seller prices each unit of output at the buyers

    benefit and sells a quantity where the marginal benefit equals the marginal

    cost

    Direct segment discrimination:

    The pricing policy where a seller charges a different incremental margin to

    each identifiable segment (with uniform pricing within each segment). A

    segment is a significant group of buyers within a larger market

    Indirect segment discrimination:

    Pricing policy where a seller (who cannot directly identify the customer

    segments) Structures a choice for buyers so as to earn different incremental

    margins from each segment

    Conclusion

    AIRTEL companies are using direct segment discrimination were seller

    charges a different incremental margin to each identifiable segment (with

    uniform pricing within each segment). A segment is a significant group of

    buyers within a larger market. since there are only two connection i.e. post

    paid and prepaid but with different plan which are priced separately according

    to the customers wants and needs.

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    LEGAL ENVIRONMENT

    FACTORS AFFECTING THE TELECOM SECTOR

    There are four factors that affect the Telecom sector.

    They are:

    Political environment

    Economic environment

    Social environment

    Technological environment

    1) Political Environment:

    Political forces influence the legislations and government regulations underwhich the firm operates.

    Allotment of Spectrum to GSM Operators:

    All telecom companies face political constraints in the form of minimum usage

    legislation. These laws, rules and regulations affect a companys profit.

    The COAI made a legal representation to DoT, asking DoT to make available

    requisite spectrum to the GSM operators as per the criteria laid down by the

    Government. GSM operators had been facing a severe crunch on spectrum

    and have been waiting for months or even years to get spectrum. He stated

    that the non-availability of spectrum was affecting both new licensees who

    were yet to get their initial allotments and also the operators who had far

    exceeded the subscriber linkages that had been prescribed by the

    Government.

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    Tower problems:

    In Goa & Maharashtra circle there is a Political problem regarding setting up of

    towers on Naval base as the Navy people are not allowing telecom companies

    to set towers in that area.

    2) Economic Environment:

    These are the factors that affect the revenues of the company and also the

    government. These include:

    1) Licensing liberalization

    Several important initiatives have been taken to further liberalize the licensing

    norms with the objective of making telecom services available at affordable

    prices.

    FDI Ceiling increased from 49 per cent to 74 per cent in the telecom

    services.

    Annual license fee for National Long Distance (NLD), International Long

    Distance (ILD), Infrastructure Provider-II, VSAT commercial and Internet

    Service Provider (ISP) with internet telephony (restricted) licenses was

    reduced to 6% of Adjusted Gross Revenue (AGR) w.e.f. 1-1-2006.Entry fee for NLD licenses was reduced to Rs. 2.5 Crore from Rs. 100 Crore

    prospectively i.e. date of issue of amendment to the existing guidelines to that

    effect. Entry fee for ILD be reduced to Rs. 2.5 Crore from Rs. 25 Crore.

    Lease line charges have been reduced to make the bandwidth available at

    competitive prices to facilitate growth in IT enabled services.

    The rate of License fee/revenue share has been revised from 10% to

    6% of the AGR w.e.f 01.01.2006.

    3) Social Environment:

    The social environment is an important factor as changes in the values,

    beliefs, attitudes, opinions and life styles in society create potential

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    opportunities for an organization for a company to grow, it is necessary to take

    advantage of societal changes. The cultural, demographic, religious,

    educational and ethnic conditioning of individuals in society affects the social

    environment.

    (i)Rural Telephony

    Telecom development in rural areas assumes special significance as more

    than 70% of telecom development and overall economic development of a

    region. Telecom services are important drivers for development, delivery of

    public services such as education, health etc. and integration of rural areas

    with the rest of the country.

    (ii) ONE INDIA PLAN: Telecom companies have started ONE INDIA PLAN in

    which subscribers can call anywhere in India @ Rp 1/-.

    4) Technological environment:

    This environment comprises factors relating to the raw materials and

    machines used in manufacturing the service. These factors include Age, 3G,

    number portability, EDGE Technological innovations determine how

    organizations compete and thrive in the marketplace.

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    BRANDING AND PRODUCT RANGE

    AIRTEL AS A BRAND

    To connect India's leading 1000+ corporate, empower them through

    Broadband services and connect Indians living in USA with our call home

    service Airtel was born free, a force unleashed into the market with a

    relentless and unwavering determination to succeed. A spirit charged with

    energy and creativity and a team driven to seize the day with an ambition to

    become the most globally admired telecom service. Airtel, after just ten years,

    has risen to the pinnacle of achievement.

    As India's leading telecommunications company serving over 33 million

    customers the brand has played the role as a major catalyst in India's reforms,

    contributing to its economic resurgence.

    Today we touch peoples lives with our Mobile services to connect India's

    leading 1000+ corporate, empower them through Broadband services and

    connect Indians living in USA with our call home service.

    The Airtel Logo

    The Airtel logo is a specially drawn wood mark, strong, contemporary and

    confident symbol for a brand that is always ahead of the rest.

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    The Airtel Image Style

    It incorporates two solid, red rectangular forms whose counter-form creates an

    open doorway.

    The Airtel Typographical Style

    The title case lettering with its capital A reinforces our leadership position.

    The red dot cues in our focus on innovation. Our logo is a reflection of our

    identity a confident symbol of a brand that is always ahead of the rest,

    always In-touch and on customers side. The words Express Yourself are

    very much of the Brand identity

    The Airtel Color Palette

    The lettering is grey so that the pure black of Airtel is visually unharmed.

    SIGNIFICANCE OF BRAND

    Consumers identify brand distinctive capabilities based on their perception

    that have themselves been created by the marketer over a period of time.

    A brand conveys the following

    Attributes: Brand usually highlights the product to inform existing

    customer and also attract the potential customer. For e.g. airtel as a

    brand name is more popular and their number of post paid connection

    is very high.

    Benefits: the attributes should eventually transform into emotional and

    functional benefits, for the brand to be successful.

    Values: Most of the brands associate some value with themselves. For

    instant the baseline of airtel, Express yourself, communicates a value

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    proposition that the prepaid and postpaid connections make s to

    express yourself to other.

    Culture: Brands also represents a certain culture. For instant, airtel

    projects a culture of togetherness among the people by talking to eachother and express the feelings, thus creating an emotional appeal in the

    minds of people to buy the products.

    Personality: Brands communicate personality status. For instant airtel

    suggest that

    It is a brand for all segments of people whether they are rich or poor

    and for the people who believes in to maintain human relation.

    User: Brand clearly states their user segments. Airtel targeted all

    segment of people, right from the common people to the business

    oriented people.

    PRODUCTS AND SERVICES:

    1) Blackberry Services

    Send and receive

    emails instantly

    Read attachments

    Blackberry- Airtel introduces a brand new offering - the Blackberry 8700g,

    Uncompromising Email, Browsing and Phone Performance in all in one

    device.

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    2) Postpaid Services

    Post Paid Plans- As an Airtel Post-paid customer you can enjoy the following

    facilities -Easy Billing, Call Divert, Call Hold and Call Wait, Short Messaging

    Service (SMS), Caller Identification, Voice Mail, STD/ISD Facility, Roaming

    (National and International), Bill payment on mobile, etc.

    3) Prepaid Services

    Pre paid Plans- As an Airtel Pre-paid customer you can enjoy the following

    facilities - Total Cost Control, No Deposits, No Rentals, STD/ISD Facility to the

    last rupee, Instant Balance Inquiry, 60 Second Pulse, Instant Recharge, 24

    hour recharge facility, Caller Identification, Call Hold and Call Wait, Short

    Messaging Service (SMS), SMS based Information Service, Voice mail

    service.

    Thus it has found that prepaid connections are more than postpaid

    connections.

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    DETAILS OF PRODUCTS

    Some of the post paid plans that sell the most are:

    Table1. Airtel Value Plan

    Monthly RentalRs125 month

    Clip No clip charges for first first six months after that50 rs p/m

    Local RatesAirtel Other GSM Landline/CDMA

    0.50 0.50 1.00

    STD RatesAirtel Other GSM Landline/CDMA

    2.00 2.40 2.40

    ISD

    Africa 9.99

    Middle East 9.99

    Europe Mobile, SARRC 9.99

    Us Canada, Eur LL 7.20

    New Zealand, South East Asiacore, Australia

    7.20

    SMS

    Local Rs. 1/per sms

    National Rs. 2/per sms

    International Rs. 5/per sms

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    Table2. : Airtel Privilege 450/-

    34

    Monthly RentalRs450 month

    Clip nil

    Local RatesAirtel Other GSM Landline/CDMA

    0.50 0.50 1.00

    One Airtel to Airtel no. Wherein calling is 0.10paisa

    STD RatesAirtel Other GSM Landline/CDMA

    1.50 1.50 1.50

    ISD

    Africa 9.99

    Middle East 9.99

    Europe Mobile, SARRC 9.99

    Us Canada, Eur LL 7.20

    New Zealand, South East Asiacore, Australia

    7.20

    SMS

    Local Rs. 0.50/per sms

    National Rs. 1/per sms

    International Rs. 5/per sms

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    Table 3. : Airtel Privilege 599 plus

    35

    Monthly RentalRs599 month

    Clip nil

    Local RatesAirtel Other GSM Landline/CDMA

    0.30 0.50 0.80

    One Airtel to Airtel no. Wherein calling is 0.10paisa

    STD RatesAirtel Other GSM Landline/CDMA

    1.25 1.25 1.25

    ISD

    Africa 9.99

    Middle East 9.99

    Europe Mobile, SARRC 9.99

    Us Canada, Eur LL 7.20

    New Zealand, South East Asiacore, Australia

    7.20

    SMS

    Local Rs. 0.50/per sms

    National Rs. 1/per sms

    International Rs. 5/per sms

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    Table 4. : Alex 345 Plan

    36

    Monthly RentalRs345 month

    Clip nil

    Local RatesAirtel Other GSM Landline/CDMA

    0.30 0.50 0.80

    One Airtel to Airtel no. Wherein calling is 0.10paisa

    STD RatesAirtel Other GSM Landline/CDMA

    1 1 1

    ISD

    Africa 9.99

    Middle East 9.99

    Europe Mobile, SARRC 9.99

    Us Canada, Eur LL 7.20

    New Zealand, South East Asiacore, Australia

    7.20

    SMS

    Local Rs. 0.50/per sms

    National Rs. 0.50/per sms

    International Rs. 5/per sms

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    Airtel CUG Plans (Group plans)

    Table 5.: Leader 249

    Particulars Rates

    Rental249

    Clip free

    CUG within the group M&G circle 0.10 paisa

    Local

    Airtel to Airtel 0.50

    Airtel to GSm 0.50

    Airtel to Fixed LL/WLL 1.00

    STD

    Airtel to Airtel 1.75

    Airtel to GSm 1.75

    Airtel to Fixed LL/WLL 1.75

    SMS

    Local .30

    National .30

    International 5

    TOP UPS

    Tops ups local First 200 [email protected] p

    Top ups STD First 100 min

    @.50 p.SMS First 100 smsfree

    Table 6: Leader 249 (Head on)

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    Particulars Rates

    Rental249

    Clip free

    CUG within the group M&G circle 0.10 paisa

    Local

    Airtel to Airtel 0.50

    Airtel to GSm 0.50

    Airtel to Fixed LL/WLL 1.00

    STD

    Airtel to Airtel 1.75

    Airtel to GSm 1.75

    Airtel to Fixed LL/WLL 1.75

    SMS

    Local .30

    National .30

    International 5

    TOP UPS

    Tops ups local First 200 [email protected] p

    Top ups STD First 100 [email protected] p.

    SMS First 100 smsfree

    Presence of Airtel in 23 Circles

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    North West South East

    Himachal Pradesh Maharashtra and GoaAnd

    hra PradeshOrissa

    Punjab Mumbai Tamil Nadu West Bengal

    Delhi Madhya Pradesh Kerala Kolkatta

    Gurgaon Rajasthan Karnataka

    Jammu and Kashmir

    Haryana

    UttarPradesh (W)

    Uttar Pradesh (E)

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    FINDINGS & ANALYSIS

    1. For how long you had been the customer of Airtel?

    (a) 0-3 months (b) 3-6 months (c) 6- 12 months (d) more than 1 year

    0-3 months 3-6 months 6-12 months > 1year

    24 13 08 05

    48%

    26%

    16%

    10%

    0-3 mnths

    3-6 mnths

    6-12 mnth

    >1 years

    Around 48% of churn is found among the customers who are with the services

    of Airtel for 0-3 months.

    2. Were you satisfied with the network of Airtel?

    Yes No

    21 29

    42%

    58%

    Yes

    No

    58% 0f the customers says that they are satisfied with the network of Airtel.

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    Were you happy with rental plan offered?

    Yes No

    34 14

    71%

    29%

    Ye

    No

    Majority of the People are happy with the rental plans offered by Airtel. There

    is not much difference between the plans offered by Airtel and other operators.

    4. Were the plans too expensive?

    Yes No

    14 36

    28%

    72%

    Ye

    No

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    56%

    44% Y

    N

    Hypothesis testing

    Ho: Customers say that 7days is sufficient time between bills received date &

    the due date.

    H1: customers say that7 days is not sufficient time between bills received

    date & the due date.

    x x- x (x- x)

    28 0 0

    22 -6 36

    = 50 = 252

    X = 28

    = 36 = 18

    2

    = 12.77

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    = 28-25 = 312.77 12.77

    = 0.23

    Since computed value lies in acceptance region we conclude that there is

    sufficient time between bills received date & due date.

    7. Were you happy with the billing payment facility offered by Airtel?

    Yes No

    31 19

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    62%

    38%

    Ye

    No

    Hypothesis testing

    Ho : customers are satisfied with the billing payment facility offered by AirtelH1 : customers are not satisfied with the billing payment facility offered byAirtel

    X X-X (X-X)

    31 0 0

    19 -12 144

    X = 31

    = 50 = 252

    = 144 = 72

    2

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    = 31- 25 = 6 = 0.1251 51

    Since computed value lies in acceptance region we conclude that people are

    happy with billing payment facility offered by Airtel.

    Few customers are unhappy with the billing payment facility offered by Airtel.

    8. Were your queries solved by customer care or concerned person?

    Yes No

    32 18

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    64%

    36%

    Ye

    No

    36% were found that their queries were not solved.9. Were you happy with the value added services offered by Airtel?

    Yes No

    38 12

    76%

    24%

    Ye

    No

    10. Are you willing to join again if your queries are given necessary solutions?

    Yes No

    08 42

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    16%

    84%

    Ye

    No

    Though 84% of the churned customers are not willing to join again it is verydifficult to get them back again.

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    CONCLUSIONS

    Around 48% of the churn is found among the customers who are with

    the services of Airtel for 0-3 months. These are the customers who

    constantly switch over to other operators if they find the services

    unsatisfactory. These are the customers who look out for cheaper rental

    plans. Though it forms the major portion of the churn retaining of such

    customers is very important. Such customers can be retained by

    offering them cheaper plans compared to the competitors.

    People do find better coverage in urban and semi urban areas but as

    you move towards the interior of rural areas people do face the

    coverage problem. Though Airtel is coming with more towers in Goa &

    Maharastra circles coverage issue will be solved in coming years.

    Some customer had to come to city for bill payment. This problem can

    be solved by setting up small Airtel galleries at convenient locations

    offering both prepaid and post paid services.

    36% were found that their queries were not solved. Such special cases

    have to be taken into consideration and accordingly a proper retention

    tool should be offered.

    84% of the churned customers are not willing to join Airtel again even though if

    their queries are solved. This can be avoided by keeping a proper track of

    why they discontinued and accordingly proper plans can be designed so

    as to avoid further problem of churn.

    The problem of insufficient time of billing payment can be solved by

    customizing the billing payment cycle to particular customer. This can

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    be done at the time of taking the connection by asking the customer

    about the date he is convenient of paying.

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    BIBLOGRAPY

    1) Web sites:

    www.google.com

    www.wikipedia.com

    www.airtel.com

    2) Personal interview with area manager

    3) Book reference

    4)Questionnaire

    51

    http://www.google.com/http://www.wikipedia.com/http://www.google.com/http://www.wikipedia.com/
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    ANNEXUREQUESTIONNAIRE

    1. For how long you had been the customer of Airtel?

    (a) 0-3 months (b) 3-6 months (c) 6- 12 months (d) more than 1 year

    2. Were you satisfied with the network of Airtel?

    (a) Yes (b) No

    3. Were you happy with rental plan offered?

    (a) Yes (b) No

    4. Were the plans too expensive?

    (a) Yes (b) No

    5. Was there any difference between plans discussed and plan offered?

    (a) Yes (b) No

    6. Was there sufficient time between bills received date and due date?

    (a) Yes (b) No

    7. Were you happy with the value added services offered by Airtel?

    (a) Yes (b) No

    8. Were you happy with the billing payment facility offered by Airtel?

    (a) Yes (b) No

    9. Were your queries solved by customer care or concerned person?

    (a) Yes (b) No

    10. Are you willing to join again if your queries are given necessary solutions?

    (a) Yes (b) No

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    ABBREVIATIONS

    1. TDMA- Time division multiple access

    2. GSM Global Systems for Mobiles

    3. CDMA Code Division Multiple Access

    3. GPRS General Pocket Radio Service

    4. EDGE- Enhanced data rate for G.S.M evaluation

    5. CLIP Caller Line Identification Protocol

    6. MMS Multimedia Messaging Service

    8. WCC World Calling Card

    9. CUG Close User Group

    10. SMS Short Messaging Service

    11. FOS Feet On Street

    12. P2P Pre paid 2 Post paid

    13. DSA- Direct sales associates

    14. ADC- Airtel Data Card

    15. VTS- Vehicle Tracking system

    16. FCT- Fixed cellular terminal

    17. TRAI- Telecom regulatory authority of India

    18. MSE- Mobile switch center

    19. IMEI- International mobile equipment identity

    20. BTS- Base time receiver system

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