A PROJECT REPORT ON

MARKETING OF AIRTEL DTH

(Advertising & Sales promotion)

BBA(6TH SEM) (Session : 2010-11)

SUBMITTED TO:- SUBMITTED BY:- Mr.Sachin Sinha Pratham Srivastava Roll No. -9102580 Section – B

ACKNOWLEDGEMENT

I am thankful and highly grateful to my teachers for their continuous support, guidance and help they have extended to me for the completion of my project.

(Pratham Srivastava)

CERTIFICATE

This is to certify that Pratham Srivastava is a bonafide student of B.B.A.-IIIrd semester, IPEM,C.C.S. University of batch 2010-11. He has undertaken and completed this project named ‘Marketing of Airtel DTH includes advertising & sales promotion’ under my guidance.

This is to certify that project work & the contents contained herein are a result of the diligent work conducted by him, originally.

(Mr. Sachin Sinha)

INTRODUCTION

Bharti Airtel

Brief history Bharti Airtel was established as Bharti Tele-Ventures Limited in 1985. This telecommunication company is a joint stock holding enterprise headquartered in New Delhi. Bharti Airtel, commonly called 'Airtel' is among largest mobile service operator with a subscriber base of nearly 75 million. Airtel has a submarine cable landing station in Chennai connecting this South Indian city to Singapore.

Today, Airtel is the largest cellular service provider in India and fifth largest in the world.

Bharti airtel limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. bharti airtel has been ranked among the six best performing technology companies in the world by BusinessWeek. Bharti airtel had 200 million customers across its operations.

Business Divisions

Mobile Division:-Experience total cost control, no rentals and easy billing with our postpaid and prepaid services. Explore the world with our roaming services and get absolutely cool offers with airtel live. Bharti airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers.

Airtel telemedia Services:- The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with India’s best direct to home (DTH) service digital TV in more than 150 cities

Airtel Digital Services:-

Discover the magical experience of digital enterainment with airtel. From DVD quality picture and sound, the best and widest variety of channels and programmes to the best on-demand content on airtel Live, your TV viewing experience change forever with digital TV from Airtel!

FinancialsBharti Airtel till March 2008 had assets worth US $6.61 billion. During period between April 2007 – March 2008, it achieved sales amounting to US $6.61 billion and profits of US $0.94 billion.

Awards and recognitionBharti Airtel was adjudged 'Best Carrier India' at 2008 Telecom Asia. It was recognized as 'Best Cellular Service Provider' and 'Best Broadband Service Provider' at V&D 100 awards for 2008. In 2007, Bharti Airtel won 'Business Leadership Award' from NDTV Profit.

ORGANISATION STRUCTURE

Corporate Structure of Bharti Airtel

LATEST UPDATES OF BHARTI AIRTEL

Airtel Digital TV records the fastest 5 mn customers

The 5th entrant leads industry net additions with over 2.8 mn customers already in FY 2010-11• Reaches the milestone in 21 months of national operations – Fastest by any operator• Strengthens leadership in key markets, leading net additions in 10 of the 19 state clusters• Expands reach to cover over 21,000 of the 27,000 pin codes across the country   - Now has over 70% customers coming in from Tier-3 towns

Airtel digital TV – The DTH service from Bharti airtel – has over 5.1 million customers and is one of the leading national level DTH service in the country which offers its customers MPEG 4 with DVBS 2 - currently the most advanced digital broadcasting technologies available in the world after HD broadcasting. Additionally, airtel digital TV was the first to bring many firsts to the DTH segment in India including a Universal Remote which operates both the Set Top Box and TV set as well as several unique Interactive Applications. airtel digital TV recorder was the first to offer the capability to record live television, anytime, anywhere and recently added HD services to its portfolio. Users can also update themselves on the latest stock news. All this is backed by 24x7 customer care. airtel digital TV launched its services in October 2008.

VISION OF AIRTEL

Vision 2010

By 2010 Airtel will be the most admired brand in India

Loved by more customers Targeted by top talent Benchmarked by more businesses

Vision 2020

To build India’s finest business conglomerate by 2020

Supporting education of underprivileged children through Bharti Foundation

Strategic IntentTo create a conglomerate of the future by bringing about “Big Transformations through Brave Actions”

MISSION OF AIRTEL

Customer service focus Empowered employees Innovative servicesCost efficiency

“We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more.”

Marketing Value

Matching demand to supply Just in Time Marketing Consumer win win approach Customer first thinking Market creation Trust & empathy

Marketing Process & Communication

Point of need communitcation Personalisation Interactive Conversations

Market Analysis

Customer delight Measuring customer satisfaction, channel

satisfaction, walk in feedback score Marketing performance Brand performance

Consumer Approach

Anticipates customer needs Transparent in dealing with customers Attending the problems of the customer

before one’s own Creates energy & excitement at work Goes beyond tasks to attend the emotional

needs of people

Market Segmentation & Positioning Bases of

Segmentation

Geographical Segmantation Demographic Segmentation Behavioural Segmentation

Positioning of Airtel (Express Yourself)

A decade ago, Airtel positioned itself as an aspirational & lifestyle brand

The target customer was clearly defined: upmarket, professionals & entrepreneurs

Airtel’s power trip logo was black with tagline “ power to keep in touch”

Airtel brand then aimed at leadership, be it innovation, network offering or service

Tagline indicated it: Airtel celebrates the spirit of leadership & the first choice of corporate leaders

In 1999, communication changed to “power to touch tomorrow”

In 2002-03, it was changed to “Live Every Moment”

In 2003, Airtel adopted the “ Express Yourself” positioning which is also its current tagline

Brand Image

Aggressive Market Expansion Functionality & Efficiency Physical presence People’s emotions

Brand Management

Unlock consumer scarcities One to One, One to Many relationships Need for a trusted partner Consumer outsource

New Product Development

Towering strength Meet requirement Developing applications

Marketing Environment

Aim to create, capture and deliver value They introduce cutting edge marketing

management Emphasize market leader Cross cultural negotiation

Pricing Policy

Dynamic Pricing Multiple pricing points Value addition to customer Freedom of choice

Marketing Reserve System

Process organization Mass Customization Sector Destruction Integrated Solutions Integrated business design Consumer Spaces Social Responsibility

Product Range

Integrated Telecom Company

Wireless Services 2G/3G Rural Market

Enterprise Services Carrier Corporate

Telemedia Services Fixed Line Broadband DTH

Passive Infrastructure Bharti Infratel Indus Tower

Introduction of Airtel DTH services

Airtel telemedia Services The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with India’s best direct to home (DTH) service digital TV in more than 150 cities

Discover the magical experience of digital enterainment with airtel. From DVD quality picture and sound, the best and widest variety of channels and programmes to the best on-demand content on airtel Live, your TV viewing experience change forever with digital TV from airtel!

Latest Updates ofAirtel DTH

Airtel digital TV records the fastest 5mn customersThe 5th entrant leads industry net additions with over 2.8 mn customers already in FY 2010-11• Reaches the milestone in 21 months of national operations – Fastest by any operator• Strengthens leadership in key markets, leading net additions in 10 of the 19 state clusters• Expands reach to cover over 21,000 of the 27,000 pin codes across the country   - Now has over 70% customers coming in from Tier-3 towns

airtel digital TV - The DTH service from Bharti airtel – has over 5.1 million customers and is one of the leading national level DTH service in the country which offers its

customers MPEG 4 with DVBS 2 - currently the most advanced digital broadcasting technologies available in the world after HD broadcasting. Additionally, airtel digital TV was the first to bring many firsts to the DTH segment in India including a Universal Remote which operates both the Set Top Box and TV set as well as several unique Interactive Applications. airtel digital TV recorder was the first to offer the capability to record live television, anytime, anywhere and recently added HD services to its portfolio. Users can also update themselves on the latest stock news. All this is backed by 24x7 customer care. airtel digital TV launched its services in October 2008.

DTH v/s IPTV v/s Cable

Figure given above showing ARPU(Average Revenue Per User)

Customer preference influences ARPU(Average Revenue Per User)

Direct-to-home, or DTH, television service providers have quadrupled their share of the market in two years, but lag far behind cable operators in reaching Indian households, according to a study by Hong Kong-based media research and consulting firm Ltd. The share of DTH operators has risen to 17% from 4% in 2007 while that of cable operators declined to 83% from 96%, showed the study.

Deep-pocketed companies such as Tata group, Bharti Airtel Ltd and Reliance Communications Ltd have followed Zee Entertainment Enterprises Ltd into the DTH space in India, where they are faced with a high cost of acquiring subscribers and tough competition from cable operators. According to data shared by Media Partners Asia, the acquisition cost for each subscriber is as high as Rs4,600 and the return on this investment still ranges between Rs85 and Rs200 in terms of monthly average revenue per user (Arpu). The set-top box (STB),

or device that connects the television set to the external signal source, is the biggest cost for a DTH company at about Rs2,800, followed by Rs1,000 for the satellite dish. Other costs include installation charges, marketing expenditure and licence fees at Rs500, Rs250 and Rs50, respectively, per subscriber.

Tata Sky remains the top Arpu grosser with an average Rs200 a month while Sun Direct, which launched in the northern part of the country a few months ago, has an Arpu level of Rs85, according to Media Partners Asia.

With aggressive marketing by DTH operators and the government trying to promote digitization of the Indian cable industry, the research firm predicts that in the next four years, DTH will garner a market share of about 28%.

At present, the country has around 15 million DTH subscribers and the industry has a turnover of nearly Rs2,800 crore. The Delhi Commonwealth Games, scheduled for October 2010, is expected to be a major catalyst for the

growth of the DTH market in India, according to Media Partners Asia.

“The requirement to broadcast Commonwealth Games in high-definition format would provide an impetus to go digital and DTH services are likely to benefit, provided there is subsidization of STB and related equipment,” the study says.

Competitors of Bharti Airtel in DTH Services

Unmatched Service & Unmatched Quality of

Airtel DTH

Airtel versus otherDTH operators

Unmatched Service Larger dish antenna in high rainfall areas Auto Level Control enabled satellite Multiple recharge options Paper Internet Call Center 24 x 7 customer care support in multiple

languages Professionally trained service engineers

Unbelievable Interactive Applications Entertainment your way 8 screen customized news as per demand More information of cricket and sports Fun way to learn for kids Book cinema tickets to movie shows Daily forecasts Browse and book travel packages Shop on TV for your favourite brands

Get city information Track stock market & sports without

moving away form the program you are watching

Exciting world of Airtel Live Movies on demand

- 3 Hindi Movies- 2 English Movies- 4 Regional Movies

Loads of short variety programs Exciting games refreshed periodically Amazing interactive applications Watch 6 channels on a single screen with

Quick View Radio on TV

Airtel versus other DTH operators

A smart simpler easy to use EPG(Electronic Programme Guide)

Easy & simple to navigate English & Hindi language option Account balance indicator Customise favorite channel into 4 lists Parental control basis rating & channel

Tomorrow’s features today

Airtel digital TV provides: Single remote for TV & STB Latest MPEG4 Set Top Box(STB) Great design and sleek looks Higher in built STB memory, more

interactive applications HD ready Low battery indicator

Benefits of DTH over Cable

EPG Provides a scrolling menu that lists the

channels and the programmes currently showing across the channels

With Airtel’s EPG customer’s can create 4 different list’s of his/her favourite channels

Airtel’s EPG provides access to exclusive content on Airtel Live

Parental Lock can be activated to block channels that parents don’t want their children to

Cable Customer has to surf and locate the

channels and program he/she wants to view Customer has to surf and locate his/her

channel one by one Exclusive content is not available to the

customer Channels cannot be blocked

Benefits of DTH over Cable

Value Added Services Airtel Digital TV provides a host of Value

Added Services like- Movies on Demand- Interactive TV applications- Full program listings of channels for

next 7 days- Alarms to remind you of your favorite

programs- Parental lock- Special content for your kids- List of favorite channels for easy

viewing Your Cable Operator decides choice of

channels and you pay for all channels carried

With Airtel digital TV you decide the channel and pay only for what you choose

Your Cable Operator doesn’t provide service during power cut & has little technical knowledge

With digital TV from Airtel you get service assistance in multiple languages 24 hrs x 7 days by trained professionals at our Call Center

Picture & Audio quality- Your existing cable provides grainy and

snowy images & uneven signal strength across channels

- With digital TV from Airtel, you get DVD quality picture & uniform high quality signal strength across all channels

Typical Issues with Cable

Inconsistent viewing experience- Picture quality is often hazy, has snowy

effects, freezes- Audio quality varies channel to channel- Frequent power cuts at cable operator’s

end- Frequent cable breakages

Inconsistent customer service- Poor or no customer service- No uniformity of prices within a

locality, same apartment block- Behavioural issues with local cable

operator- No freedom to choose set of channels

which interests you- No value added services

Growth of DTH service in India

nnnin

Figure shown above reprents growth of digital satellite tv in India

Subscibers of DTH and Cable TV services

Figure shown above represents growth of cable tv households and dth subscribers in India

Data Analysis of Airtel

SWOT Analysis

BCG Matrix

Strengths

Largest Telecom Player in India - ~80Mn, 22.6%

Strategic Alliance with other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel

Pan India PresenceStrong Financials

WeaknessOutsourcing of Core SystemsLack of emerging market

investment opportunity

Opportunities Threats

• Bharti Infratel – Cutting Down cost in Rural area

• Match Box Strategy – Scale of Penetration

• Current Tele-Density – 30.6 is still low among developing countries

• Low Broadband Penetration, Rural Telephoney

• India centric – Major revenues from India

• Falling ARPU & AMOU

• Intense Competition & Shortage of Bandwidth

GE Matrix of Airtel

LOWHIGH

H I GH

LOW

Mobile Services

DTH & IPTV

Broad Band

Porter’s Five Forces Model

Business Strengths

Low

High

LowHigh

Attractive

Moderate Attractive

Unattractive

Mobile Airtel

TeleMedia

5.00 1.002.333.67

5.00

3.67

2.33

Enterprises

45

Environmental Analysis

Competitors Analysis

Demand for VAS & Broadband services Among Youth

28 % Urban Population

Rapid Urbanization

Rising Income level

Figure given above represents market share of DTH operators

Core Values

Empowering People-To do their best

Being flexible-To adopt to the changing environment and evolving customers needs

Making it happen- By striving to change the status quo, innovate and energize new ideas with a strong passion and entrepreneurial spirit

Openness & Transparency-With an innate desire to do good

Creating Positive Impact-With a desire to create a meaningful difference in society

Objectives/Goals

To undertake transformational projects that have a positive impact on the society and contribute to the nation building process

To Diversify into new businesses in agriculture, financial services and retail businesses with world- class partners

To lay the foundation for building a “conglomerate” of future

Limitations of Airtel

Customer Bargaining Power

Lack of differentiation among DTH service providers

Cut throat competition Low switching costs Lack of scarce resources and increasing

customer demand

Threats of substitutes

Due to threat of new entrants in the existing market

Due to introduction of lower and attractive tariffs offered by the substitutes

Due to emergence of new substitutes, cover up the whole existing market and reduce competition ultimately

Rapidly changing technology, due to which it becomes difficult for existing competitors to compete in market

Due to high infrastructure cost

Advantages of Airtel

Business Strength

Current market share Brand Image Brand Equity Production Capacity Corporate image Profit margins relative to competitors R & D performance Managerial personal Promotional effectiveness

Strategy

Airtel partnered with leading players in telecommunication players across the globe

It has managed to work with the best of domain specialists globally and emerge as a world class entity

Partnerships include operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants

Operational Strategies

Higher emphasis on ARPU/min- stark contrast with other operators who concentrate on ARPU only

Aim to become one stop shop for all DTH services under the Bharti umbrella

Exploring opportunities in international markets

Hived off tower infrastructure into a separate entity

Performance till date

Bharti Airtel has enjoyed an excellent run ever since the telecom sector opened

It has managed to hold on to its leadership position inspite of the presence of other players with deep pockets- Ambani’s, Tata’s Birla’s and Vodafone

Has coped well with regulatory changes Continues to attract and delight customersFuture Strategies

Translate its expertise in Indian markets to other emerging economies

This could call for acquisitions globally Indian market inspite of being the world’s

largest is still not matured. Opportunities abound in the hinterland must be exploited

REFERENCES

Bharti Airtel, Annual Report - 2010 Investors Presentation, Bharti Airtel

Limited, November,2010 “Next Big Spenders – Indian Middle

Class”,Businessweek Business Studies – Prof. C.B. Gupta BEST PRACTICES (Building business

with Customer – focused solutions) – Arthur Andersen

THANK YOU!!