of 104
8/2/2019 Amit Air Tel
1/104
A STUDY OF MARKETING STRATEGY
AND PERFORMANCE OF AIRTELCOMPANY IN NEW DELHI
RESEARCH REPORT
SUBMITTED TOWARDS THE PARTIAL
FULFILLMENT
OF
MASTER OF BUSINESS ADMINISTRATION
(Affiliated TO Mahamaya Technical University, Noida )
Academic Session
[2010-2012]
Internal supervisor: SUBMITTED BY:-
MRS.SHARDA KUMARI AMIT KR. BARGOTI LECTURER -MBA Roll no: 1030970001
MBA 2nd Year
RAJ KUMAR GOEL ENGINEERING COLLEGE 40 K.M. Stone, NH-24, Delhi Hapur Road, Pilkhuwa
8/2/2019 Amit Air Tel
2/104
CERTIFICATE
This is to certify the Dissertation entitled A Study of Markrting Strategy
and Performance of Airtel Company . Submitted by Amit Kumar Bargoti
having Roll No. 1030970001 for the partial fulfillment of the requirements of
MBA(Batch-2010-12), RKGEC, embodies the bonafide work done by him/her under
our supervision.
PLACE:PLACE:
DATE:DATE:
8/2/2019 Amit Air Tel
3/104
DECLARATIONDECLARATION
I hereby declare that I have carried out Research Report Project on the topic
entitled Marketing strategy and performance of Airtel Company in new
Delhi
I further declare that this project work is based on my original work and no part
of this project has been published or submitted to anybody.
AMIT KUMAR BARGOTI
8/2/2019 Amit Air Tel
4/104
CONTENTS
SCOPE OF STUDY
INTRODUCTION
EXECUTIVE SUMMARYEXECUTIVE SUMMARY
LITERATURE REVIEW
OBJECTIVE OF THE STUDY
RESEARCH METHOLOGY
FINDINGS &LIMITATIONS
CONCLUSION
BIBLIOGRAPHY
QUESTIONNAIRE
8/2/2019 Amit Air Tel
5/104
Acknowledgement
8/2/2019 Amit Air Tel
6/104
ACKNOWLEDGEMENTACKNOWLEDGEMENT
I am sincerely thankful to all those people who have been giving
me any kind of assistance in the making of this project report.
I express my gratitude to Mr. Neeraj Singh, who has through her
vast experience and knowledge has been able to guide me, both ably
and successfully towards the completion of the project. I express mygratitude,RAJ KUMAR GOEL ENGINEERING COLLEGE,PILKHUWA
GHAZIABAD. I would hereby, make most of the opportunity by
expressing my sincerest thanks to all my faculties whose teachings
gave me conceptual understanding and clarity of comprehension, which
ultimately made my job more easy. Credit also goes to all my friends
whose encouragement kept me in good stead. Their cont inuous
support has given me the strength and confidence to complete the
project without any difficulty.
Last of all but not the least I would l ike to acknowledge my
gratitude to the respondents without whom this survey would have been
incomplete.
I am also thankful to authority of Airtel for providing me the information.
AMIT KUMAR BARGOTI
8/2/2019 Amit Air Tel
7/104
Prefa
ce
8/2/2019 Amit Air Tel
8/104
PREFACEPREFACE
I,Amit kumar Bargoti kumar, being a student of MBA, of RAJ KUMAR
GOEL ENGINEERING COLLEGE,PILKHUWA GHAZIABAD.
The project title Marketing strategy and performance of Airtel company
is the analysis of the big scale sector of communication. This project
involves the big scale level provided by Airtel to its customers. The
survey was conducted so as to analyze the big scale sector prevailing
in the current industry and the improvement that can be made upon it.
Market research study has been conducted in order to bring out the
picture of big scale sector that exists in this industry. The differences in
service quali ty that exists in the market. What the customers
preferences are provided by the Airtel?
8/2/2019 Amit Air Tel
9/104
Executi
ve
8/2/2019 Amit Air Tel
10/104
Summa
ry
8/2/2019 Amit Air Tel
11/104
EXECUTIVE SUMMARYEXECUTIVE SUMMARY
The project is an extensive report on how the Airtel Company
markets its strategies and how the company has been able in tackling
the present tough competi tion and how i t is cooping up by the
allegations of the quality of its products. The report begins with the
history of the products and the introduction of the Airtel Company. This
report also contains the basic marketing strategies that are used by the
Airtel Company of manufacturing process, technology, production
policy, advertising, collaboration, export scenario, future prospect and
government policies. The report includes some of the key salient
features of market trend issues.
In todays world of cutthroat f ierce competition, i t is very
essential to not only exist but also to excel in the market. Todays
market is enormously more complex. Hence forth, to survive in the
market, the company not only needs to maximize its profit but also
needs to satisfy its customers and should try to build upon from there.
8/2/2019 Amit Air Tel
12/104
Objecti
ve of
8/2/2019 Amit Air Tel
13/104
the
Study
8/2/2019 Amit Air Tel
14/104
OBJECTIVE Of the study
1. To study the market shares of Airtel in telecommunication Industry.
2. To study the level of customer satisfaction in Airtel.
3. To study the consumer trend in telecommunication sector.
4. To study competitive marketing strategies adopted by Airtel.
8/2/2019 Amit Air Tel
15/104
ResearchMethod
ology
8/2/2019 Amit Air Tel
16/104
RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the
subject. As the prime objective of the project is to compare Airtel with the
existing competitors in the market and the impact of WLL on Airtel, the
research methodology adopted is basically based on primary data via which
the most recent and accurate piece of first hand information could be
collected. Secondary data has been used to support primary data wherever
needed.
Primary data was collected using the following techniques
Questionnaire Method
Direct Interview Method and
Observation Method
The main tool used was, the questionnaire method. Further direct interview
method, where a face-to-face formal interview was taken. Lastly observation
method has been continuous with the questionnaire method, as one
continuously observes the surrounding environment he works in.
8/2/2019 Amit Air Tel
17/104
TYPE OF RESEARCHTYPE OF RESEARCH
EXPLORATORY:EXPLORATORY:
Type of research carried out was exploratory in nature; theType of research carried out was exploratory in nature; the
objective of such research is to determine the approximate areaobjective of such research is to determine the approximate area
where the drawback of the company lies and also to identify thewhere the drawback of the company lies and also to identify the
course of action to solve it. for this purpose the information provedcourse of action to solve it. for this purpose the information proved
useful for giving right suggestion to the company.useful for giving right suggestion to the company.
8/2/2019 Amit Air Tel
18/104
DATA COLLECTIONDATA COLLECTION METHODMETHOD
TThere two type of method of data collection.here two type of method of data collection.
PPrimary datarimary data
SSecondary dataecondary data
Data used for the research work was primary in nature.Data used for the research work was primary in nature.
PRIMARY DATAPRIMARY DATA::
Primary data is that which is the collected for the fistPrimary data is that which is the collected for the fist
time and thus happen to be originated in character.time and thus happen to be originated in character.
QUESTIONNAIRE SURVEYQUESTIONNAIRE SURVEY::
In the studies a questionnaire is prepared. the questionnaireIn the studies a questionnaire is prepared. the questionnaire
consists of 20 questions.consists of 20 questions.
8/2/2019 Amit Air Tel
19/104
SECONDARY DATASECONDARY DATA::
secondary data refer to the data that has beensecondary data refer to the data that has been
already collected .the secondary data, which has been used toalready collected .the secondary data, which has been used to
carry out this study, are as follow:carry out this study, are as follow:
books, journals, magazines, newspapersbooks, journals, magazines, newspapers
industry reportsindustry reports
companys internet sitecompanys internet site
other relevant studies material and websites.other relevant studies material and websites.
SAMPLE UNITSAMPLE UNIT: - NEW DELHI: - NEW DELHI
The research process was done by interacting with number ofThe research process was done by interacting with number of
customers during the activities performed, which included,customers during the activities performed, which included,
markets, cold calling, canopies, etc. sample design consists ofmarkets, cold calling, canopies, etc. sample design consists of
random sampling.random sampling.
SAMPLE SIZESAMPLE SIZE: -: - 30 PEOPLE30 PEOPLE
8/2/2019 Amit Air Tel
20/104
METHOD OF COLLECTIONMETHOD OF COLLECTION: -: -
FIELD PROCEDURE FOR GATHERING PRIMARY DATAFIELD PROCEDURE FOR GATHERING PRIMARY DATA
Included observation and interview schedule in which theIncluded observation and interview schedule in which the
questionnaires were filed by the interviewer.questionnaires were filed by the interviewer.
personal interviews through self administered survey was done topersonal interviews through self administered survey was done to
collect the data, market research was undertaken, that wascollect the data, market research was undertaken, that was
accomplished by performing various activities designed.accomplished by performing various activities designed.
RESEARCH INSTRUMENTRESEARCH INSTRUMENT::
QUESTIONNAIREQUESTIONNAIRE
THE QUESTIONNAIRE WAS FORMULATED BY KEEPTHE QUESTIONNAIRE WAS FORMULATED BY KEEP
IN MIND THE FOLLOWING POINTSIN MIND THE FOLLOWING POINTS: -: -
GGiving the respondents clear comprehension of theiving the respondents clear comprehension of the
question.question.
IInducing the respondents to co-operate.nducing the respondents to co-operate.
GGiving instructions as to what is wanted.iving instructions as to what is wanted.
IIdentifying the needs to be known.dentifying the needs to be known.
LIMITATIONS:LIMITATIONS:
8/2/2019 Amit Air Tel
21/104
The following were the limitations that were there during the course of the
study:
1. Limited time period.
2. Less number of respondents.
Biasness of the respondents.
Primary data was collected using the following techniques
Questionnaire Method
Direct Interview Method and
Observation Method
The main tool used was, the questionnaire method. Further direct
interview method, where a face-to-face formal interview was taken.
Lastly observation method has been continuous with the
questionnaire method, as one continuously observes the
surrounding environment he works in.
Proc
edure of research methodology:-
# To conduct this research the target population was the mobile
users, Who are using GSM technology.
8/2/2019 Amit Air Tel
22/104
# Target geographic area. Sample size of 30 was taken.
# To these 30 people a questionnaire was given, the questionnaire
was a combination of both open ended and closed ended
questions.
# The date during which questionnaires were filled.
# Some dealers were also interviewed to know their prospective.
Interviews with the managers of GSM service providers were also
conducted.
# Finally the collected data and information was analyzed and
compiled to arrive at the conclusion and recommendations given.
Sources of secondary data
Used to obtain information on, Bhartis history, current issues,
policies, procedures etc, wherever required.
# Internet
# Magazines
# Newspapers
# Journals
# Bharti Circulars
8/2/2019 Amit Air Tel
23/104
# Bharti News Letters
8/2/2019 Amit Air Tel
24/104
Introdu
ction
8/2/2019 Amit Air Tel
25/104
INTRODUCTION
In the early 1990s, the Indian government adopted a new economic
policy aimed at improving India's competitiveness in the global
markets and the rapid growth of exports. Key to achieving these
goals was a world-class telecom infrastructure.
In India, the telecom service areas are divided into four metros
(New Delhi, Mumbai, Chennai and Kolkata) and 20 circles, which
roughly correspond to the states in India. The circles are further
classified under "A," "B" and "C," with the "A" circle being the most
attractive and "C" being the least attractive. The regulatory body at
that time the Department of Telecommunications (DoT)
allocated two cellular licenses for each metro and circle. Thirty-four
licenses for GSM900 cellular services were auctioned to 22 firms in
1995. The first cellular service was provided by, Modi Telstra in
Kolkata in August 1995. For the auction, it was stipulated that no
firm can win in more than one metro, three circles or both. The
circles of Jammu and Kashmir and Andaman and Nicobar had no
bidders, while West Bengal and Assam had only one bidder each.
8/2/2019 Amit Air Tel
26/104
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was
introduced in the Lok Sabha, and the president officially announced
the TRAI ordinance on 25 January 1997. The government decided
to set up TRAI to separate regulatory functions from policy
formulation, licensing and telecom operations. Prior to the creation
of TRAI, these functions were the sole responsibility of the DoT.
High license fees and excessive bids for the cellular licenses put
tremendous financial burden on the operators, diverting funds away
from network development and enhancements. As a result, by 1999
many operators failed to pay their license fees and were in danger
of having their licenses withdrawn. In March 1999, a new telecom
policy was put in place (New Telecom Policy [NTP] 1999). Under
this new policy, the old fixed-licensing regime was to be replaced by
a revenue-sharing scheme whereby between 8-12 percent of
cellular revenue were to be paid to the government.
1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS
AND THEIR RESOLUTION
Indian Cellular market immediately after the first round of licensing
in 1994-96 was beset by several problems for 3 - 4 years till the
New Telecom Policy of 1999 was announced. Some of these
roadblocks / current position is tabulated below:
8/2/2019 Amit Air Tel
27/104
ROADBLOCKS
CURRENT POSITION
High license fees
Migration to revenue sharing mode in 1999 mitigates high initial
fund requirements for payment of license fees.
Inadequately funded businesses / weak and fragmented promoters
Businesses that have since been adequately funded growing at
over 60% per annum, while businesses with weak promoters
continuing to languish - spate of acquisitions / mergers, with 4/5
major groups emerging in the last one/two years.
Regulatory authority not in place
Telecom Regulatory Authority of India (TRAI) firmly in place, and its
role being accepted by all operators; Deptt. of Telecommunications
(DOT) restructured, with operations and policy making roles vested
in different bodies.
Issues relating to unfavorable interconnect terms for private
operators, pass through income, intra circle long distance, spectrum
availability and allocation and the like remained unresolved for long
periods.
8/2/2019 Amit Air Tel
28/104
Interconnect terms since rationalized, risks on pass through income
to DoT / BHARTI (Mahanagar Telecom Nigam Ltd.) resolved to the
satisfaction of all parties with changes in methodology / revenue
sharing, intra circle long distance allowed, spectrum availability
cleared with vacation of frequencies for usage by GSM operators.
Problems in Financial closures due to:
Licensing tenure of 10 years
Large up front cash requirements from promoters due to
heavy license fee burden in initial stages of deployment Asset
based financing approach by Indian Financial Institutions.
Licensing tenure increased from 10 to 20 years
Large up front cash requirements for license fee payments
mitigated with migration to revenue sharing mode allowing
promoters to deploy more capital for capital expenditure;
project financing being considered by most financial
institutions.
Foreign ownership / change of partner limitations
Foreign ownership norms clarified, and change of partners allowed
as a matter of routine allowing ease of entry / exit - paves the way
for full control of businesses by foreign companies.
8/2/2019 Amit Air Tel
29/104
Inadequate growth of market / subscribers
Roadblocks spelt out earlier resulted in low market / subscriber
growth, but with corrective measures taken, market / subscriber
base expected to zoom
1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY
The interconnection regime between cellular operators and fixed-
line operators is still biased against the former.
Despite the recent gains of the cellular industry, not everything is
rosy. The cellular penetration rate is still very low at 0.8 percent in a
nation of over one billion people.
In recent years, many foreign companies had pulled out from their
cellular joint ventures in India due to the difficult operating
environment and bureaucracy. In 1999 alone, Swisscom pulled out
from Sterling Cellular, Telstra from Modi Telstra and both the
Telecom Organization of Thailand and Jasmine International from
JT Mobile. In 2000, Telecom Malaysia sold its stake in Usha Martin
Telecom, and both Shinawatra of Thailand and Bezeq exited from
Fascel. In June 2001, British Telecom exited from Bharti Cellular.
Bell South International has also indicated its intention to pull out
from Skycell Communications, and Hong Kong-based Distacom is
seeking to sell its stake in Spice Communications. First Pacific's
8/2/2019 Amit Air Tel
30/104
(based in Hong Kong) continued commitment to Escotel is
uncertain, and the former is reviewing various options.
The string of sell-outs notwithstanding, there has been a merger
and acquisition wave sweeping across the Indian cellular industry in
recent years. Hong Kong-based Hutchison Whampoa, via
Hutchison Telecommunications (HK), acquired major stakes in
Sterling Cellular (December 1999), Usha Martin Telecom (mid-
2000) and Fascel (September 2000). Through a partnership with
local company, Kotak Mahindra Finance, Hutchison Whampoa
practically controls Fascel and Usha Martin Telecom, thus
circumventing the 49 percent limit on foreign ownership in Indian
cellular operators. Hutchison Whampoa is also the controlling
shareholder of Hutchison Max Telecom. Not to be outdone, Bharti
Enterprises another major cellular player acquired control of
JT Telecom, which was later renamed Bharti Mobile (December
1999), and Skycell Communications renamed Bharti Mobinet
(August 2000). Bharti also acquired the Punjab license of Essar and
started operations, giving competition to the lone operator there,
Spice Communications. Going forward, Bharti is likely to merge all
its cellular companies into one entity.
8/2/2019 Amit Air Tel
31/104
Five companies together bid Rs16.3 billion to bag the licenses for
the fourth operator slots in four metros and 13 circles. Bharti
emerged as the No. 1 bidder with eight new licenses, followed by
Escotel with four, Hutchison with three, and Reliance and Idea
cellular with one each. Bharti and Hutchison have already
commenced operations in all the circles while Idea is set to launch
in Delhi. Escotel and Reliance have not made any headway.
BHARTI, the third cellular operator for Delhi and Mumbai, started
services in March 2001. BSNL, as the third nationwide cellular
operator, launched services in Kolkata and Bihar in January 2002.
This was followed by Tamil Nadu in July 2002. A nationwide launch
was scheduled for 2 October 2002. However, this has been
postponed until after mid October. Once BSNL rolls out its service,
most telecom circles will have four cellular operators. There will be
tremendous competitive pressure, which will result in lower tariffs.
Future rate cuts are expected, which will drive demand, together
with falling handset prices and the introduction of prepaid services.
In the midst of declining interest in technology stocks, Bharti came
out with its long-awaited initial public offering (IPO) in January 2002.
Leveraging on the success of its cellular service, the company got a
very good response from the primary market. The total size of the
8/2/2019 Amit Air Tel
32/104
IPO was 185 million shares at a floor price of Rs10. The issue was
oversubscribed by more than 2.5 times, netting Rs8.3 billion. This
will be used to fuel its investment in long-distance, basic and
cellular services.
As of October 2002, only BPL Mobile has launched commercial
general packet radio service (GPRS) in Mumbai. However, large-
scale uptake remains elusive. While both Bharti and Idea have
GPRS-enabled networks, there is caution on their part to launch the
service. With hardly any applications, the success of GPRS remains
a question.
Building visibility and awareness
Deviating from competing on the price platform, cellular operators
are actively promoting their brand and service portfolio through
high-visibility advertising and promotional campaigns. Cellular
operators like Bharti, Orange and BPL Mobile have been
advertising aggressively on hoardings and kiosks. Public transport
like the city rail system and cabs are used widely to carry the
message of mobility.
Customer-focused activities are gaining traction among cellular
operators with the establishment of longstanding consumer benefit
programs. Orange in Mumbai offers "Orange Holidays" and "Orange
8/2/2019 Amit Air Tel
33/104
Monsoon Offers" at very attractive rates and added benefits like
discounts on airfare, food and beverages, among others. Others
offer special privileges in retail outlets, cinemas and music shops.
Enterprise mobile applications promising revenue stream
All along, customer acquisition and the top line have been the
focus. Few operators have concentrated on offering differentiated
services for businesses. However, as operators realize that offering
basic voice and Short Message Service (SMS) will get them the
numbers but not the margins, some are now seriously looking at the
enterprise segment for provisioning superior services.
Cost-centered solutions like closed user group (CUG), value-adds
like unified messaging and instant alerts are being offered.
A variety of mobile applications are finding takers among the
enterprise segment. Bharti is in the process of introducing a facility
to fleet management companies so that they can improve the
efficiency of trucks or buses by tracking movement and ensuring
higher-use, accurate route planning. Premium automakers are also
installing a global system for mobile communications inside a
vehicle to help trace lost vehicles and track down stolen cars.
Corporations can choose enhanced services like user-defined call
routing to prevent misuse. Calls can be barred, limiting access to
8/2/2019 Amit Air Tel
34/104
select numbers and diverting calls to one single number.
Broadcasting services are also quite popular, especially among fast
food centers that have a central number. Group SMS is quite
popular, especially among enterprises both in the service as well as
the fast-moving consumer goods (FMCG) segment that have a
large field force and need to provide regular updates on inventory
status, discount schemes and movement of goods from warehouse
to the retail outlet. Banks too find bulk SMS service very useful to
forward transactional alerts to their customers.
1.3 FUTURE TRENDS AND DEVELOPMENT
There will be more competition, forcing operators to constantly
focus on differentiations to maintain their lead.
The implementation of enhanced networks like 2.5G will
enable operators to offer data services. This is an opportunity
to customize and differentiate better.
The entry of state-run operators like BSNL and BHARTI
means that prices will no longer be controlled, thus there is
less chance of a cartel being formed.
Network coverage in terms of geographic spread and quality
of coverage is crucial especially for the business subscriber.
8/2/2019 Amit Air Tel
35/104
The bigger the service provider's national presence, the better
it is for businesses. On the roaming front, signing up with a
national operator is advantageous.
Limited mobility wireless in local-loop services (by fixed
network service providers) will be a disadvantage for cellular
operators in the short term. Consequently, operators need to
streamline their customer relation activities and adopt
aggressive subscriber acquisition and retention strategies.
1.4 REGULATORY ISSUES
The operations of this sector are determined as under the Indian
Telegraph Act of 1885. A document buried in the sands of time. The
next major policy document, which was produced, was the National
Telecom Policy of 1994, a consequence of the on going process of
liberalization.
Year Event
1851 First telephones in India
1943 Nationalization of telephone companies
1985 DOT was created
1986 Creation of BHARTI and VSNL
1991 Telecom equipment liberalized
1994 Licenses for paging
8/2/2019 Amit Air Tel
36/104
1994 Telecom policy announced
September 1994 Guidelines for private sector participation in
basic services
November 1994 Cellular licenses issued for metros
December 1994 Tenders for cellular licenses in 19 cities apart
from 4 metros
January 1995 Tenders for 2nd operator in basic services
apart from DOT on circle basis.
August 1995 VSNL launches Internet services
January 1996 TRAI formed
November 1998 Internet policy announced
The National Telecom Policy of 1994 document, which laid out
broad policy guidelines rather than a series of action points. Like
other policies, it sought to achieve the impossible in finite time like
improve quality of service and its availability, wide coverage (a
phone in every village), at reasonable rates, etc. The targets in
quantifiable terms were installation of 9.5mn additional lines,
telephone on demand by 1997, and a PCO pop of 500. The Eighth
Plan had also allowed private operators in value added services. To
facilitate licensing, the nation was divided into 20 circles (akin to a
8/2/2019 Amit Air Tel
37/104
state) for basic and 21 circles for cellular telephony. Mumbai falls in
Maharashtra circle and Delhi in itself a circle.
The basic premise on which competition has been introduced is that
every circle will have one private operator apart from DOT/ BHARTI
for basic and two operators for cellular. DOT/ BHARTI have the
option to become the third cellular operator in future.
Government did not achieve most of its stated targets. The basic
theme, which was broadening the reach of telephony in India, has
not been met. Even liberalization policies were not implemented
properly. The regulator TRAI was set up after delays and confusion
and even after its creation, DOT continued to fight with it in courts. It
was also affected by the resource crunch, and financing options like
BOT, BOOT and BOLT was not used at all. The major policy
direction it showed was to allow private sector entry in both basic
and value added services. The intention, though noble failed to
achieve its goals because of improper implementation, the
economic costs are still borne by the end user.
The telecom sector has witnessed some fundamental structural and
institutional reforms in the past decade. Telecom equipment
manufacturing was completely deregulated in 1991. Value-added
services (including cellular services) were thrown open to private
8/2/2019 Amit Air Tel
38/104
sector participation in 1992. Basic services were opened to private
participation in 1994 by dividing the country into 21 telecom Circles
and allowing one private operator per Circle to compete with DOT.
An independent telecom regulatory Authority of India was set up in
1997. A new Policy for Internet Service Policy Providers (ISPs) was
announced in 1998 allowing independent service providers to enter
the sector ending the earlier monopoly of VSNL. Reorganization of
DOT, separating policymaking function and service provision and
corporatization of DOT's operational network are two major
institutional reforms, which need to be implemented.
8/2/2019 Amit Air Tel
39/104
COMPANY PROFILE
we are one of asias leading providers of telecommunication
services with presence in all the 22 licensed jurisdictions (also
known as telecom circles) in india, and in srilanka. we served an
aggregate of 105,195,762 customers as of june 30, 2009; of whom
102,367,881 subscribe to our gsm services and 2,827,881 use our
telemedia services either for voice and/or broadband access
delivered through dsl. we are the largest wireless service provider in
the country, based on the number of subscribers as of june 30,
2009. we also offer an integrated suite of telecom solutions to our
enterprise customers, in addition to providing long distance
connectivity both nationally and internationally. we have recently
forayed into media by launching our dth and iptv services. all these
services are rendered under a unified brand airtel.
8/2/2019 Amit Air Tel
40/104
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.
bharti infratel and indus towers are the two top providers of passive
infrastructure services in india.
company shares are listed on the stock exchange, mumbai (bse)
and the national stock exchange of india limited (nse)
Partners
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.
8/2/2019 Amit Air Tel
41/104
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.
Vision
"As we spread wings to expand our capabilities and explore new
horizons, the fundamental focus remains unchanged: seek out the
best technology in the world and put it at the service of our ultimate
user: our customer."
These are the premise on which Bharti Enterprises has based its
entire plan of action.
8/2/2019 Amit Air Tel
42/104
Bharti Enterprises has been at the forefront of technology and has
revolutionized telecommunications with its world-class products and
services.
Established in 1985, Bharti has been a pioneering force in the
telecom sector. With many firsts and innovations to its credit,
ranging from being the first mobile service in Delhi, first private
basic telephone service provider in the country, first Indian company
to provide comprehensive telecom services outside India in
Seychelles and first private sector service provider to launch
National Long Distance Services in India. Bharti had approximately
3.21 million total customers nearly 2.88 million mobile and
334,000 fixed line customers.
Its services sector businesses include mobile operations in Andhra
Pradesh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh,
Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra
circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West)
circle. In addition, it also has a fixed-line operation in the states of
Madhya Pradesh and Chhattisgarh, Haryana, Delhi, Karnataka and
Tamil Nadu and nationwide broadband and long distance networks.
Bharti has recently launched national long distance services by
offering data transmission services and voice transmission services
8/2/2019 Amit Air Tel
43/104
for calls originating and terminating on most of India's mobile
networks.
The Company is also implementing a submarine cable project
connecting Chennai-Singapore for providing international
bandwidth.
Bharti Enterprises also manufactures and exports telephone
terminals and cordless phones. Apart from being the largest
manufacturer of telephone instruments, it is also the first telecom
company to export its products to the USA.
Bharti Tele-Ventures' strategic objective is
to capitalize on the growth opportunities that the Company believes
are available in the Indian telecommunications market and
consolidate its position to be the leading integrated
telecommunications services provider in key markets in India, with a
focus on providing mobile services.
The Company has developed the following strategies to achieve its
strategic objective:
Focus on maximizing revenues and margins;
Capture maximum telecommunications revenue potential with
minimum geographical coverage;
8/2/2019 Amit Air Tel
44/104
Offer multiple telecommunications 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 of customer satisfaction;
Leverage strengths of its strategic and financial partners; and
Emphasize on human resource development to achieve
operational efficiencies.
8/2/2019 Amit Air Tel
45/104
Businesses
Bharti Tele-Ventures current businesses include : -
Mobile services
Fixed-line
National and international long distance services
VSAT, Internet services and network solutions
Competitive Strengths
Bharti Tele-Ventures believes that the following elements will
contribute to the Company's success as an integrated
telecommunication services provider in India and will provide the
Company with a solid foundation to execute its business strategy:
Nationwide Footprint - approximately 92% of India's total
mobile subscribers resided in the Company's fifteen mobile
circles. These 15 circles collectively accounted for
approximately 56% of India's land mass;
Focus on telecommunications to enable the Company to
better anticipate industry trends and capitalize on new
telecommunications-related business opportunities;
The strong brand name recognition and a reputation for
offering high quality service to its customers;
8/2/2019 Amit Air Tel
46/104
Quality management team with vision and proven execution
skills; and
The Company's strong relationships with international
strategic and financial investors such as SingTel, Warburg
Pincus, International Finance Corporation, Asian
Infrastructure Fund Group and New York Life Insurance.
Brand Architecture:
Bharti is working on a complex three-layered branding
architecture to :
Create specific brands for each service,
Build sub-brands within each of these services and
Use Bharti as the mother brand providing the group its
corporate identity as well as defining its goal to become a national
builder of telecoms infrastructure.
8/2/2019 Amit Air Tel
47/104
AirTel - The flagship brand for cellular operations all across
the country.
Touchtel- The brand earmarked for basic service operations.
India One - The brand for national long distance (NLD)
telephony
Though the costs of creating new brands are heavy but the
group wants to create distinct independent brands to
address different customers and profiles.
Brand Strategy:
BHARTI
AIRTEL(Cellular
Operations)
TOUCHTEL(Basic Service
Operations)
INDIA ONE(National Long
Distance)
8/2/2019 Amit Air Tel
48/104
To understand the brand strategy, lets first look at the brand
building exercise associated with AirTel a brand that had to be
repositioned recently to address new needs in the market.
When the brand was launched seven years ago, cellular telephony
wasnt a mass market by any means. For the average consumer,
owning a cellular phone was expensive as tariff rates (at Rs 8 a
minute) as well as instrument prices were steep sometimes as
much as buying a second-hand car.
Bharti could have addressed the customer by rationally explaining to
him the economic advantage of using a mobile phone. But Sachdev
says that such a strategy would not have worked for the simple
reason that the value from using the phone at the time was not
commensurate with the cost.
Instead of the value-proposition model, we decided to address the
sensory benefit it gave to the customer as the main selling tack. The
idea was to become a badge value brand, he explains.
So the AirTel leadership series campaign was launched showing
successful men with their laptops and in their deluxe cars using the
mobile phone. In simple terms, it meant AirTel was positioned as an
inspirational brand that was meant for leaders, for customers who
stood out in a crowd.
8/2/2019 Amit Air Tel
49/104
Did it work? Repeated surveys following the launch showed that
there were three core benefits that were clearly associated with the
brand leadership, dynamism and performance.
These were valuable qualities, but they only took AirTel far enough
to establish its presence in the market. As tariffs started dropping, it
became necessary for AirTel to appeal to a wider audience. And the
various brand-tracking exercises showed that despite all these good
things, there was no emotional dimension to the brand it was
perceived as cold, distant and efficient.
Sachdev and his team realized that in a business in which customer
relationships were the core this could be a major weakness. The
reason? With tariffs identical to competitor Essar and roughly the
same level of service and schemes, it had now become important
for Bharti to humanize AirTel and use that relationship as a major
differentiation.
The brand had become something like Lufthansa cold and
efficient. What they needed was to become Singapore Airlines,
efficient but also human. A change in tack was important because
this was a time when the cellular market was changing.
8/2/2019 Amit Air Tel
50/104
The leadership series was okay when you were wooing the crme
de la crme of society. Once you reached them you had to expand
the market so there was need to address to new customers.
By that time, Bharti was already the leading cellular subscriber in
Delhi with a base of 3.77 lakh (it now has 1.2 million customers).
And with tariffs becoming more affordable as cell companies
started cutting prices it was time to expand the market.
How could Bharti leverage this leadership position down the value
chain? Surveys showed that the concept of leadership in the
customers minds was also changing. Leadership did not mean
directing subordinates to execute orders but to work along with a
team to achieve common objectives it was, again, a relationship
game that needed to be reflected in the AirTel brand.
Also, a survey showed that 50 per cent of the new customers
choose a mobile phone brand mostly through word-of-mouth
endorsements from friends, family or colleagues. Thus, existing
customers were an important tool for market expansion and Bharti
now focused on building closer relationships with them.
That is precisely what the brand tried to achieve through its new
positioning under the AirTel Touch Tomorrow brand campaign.
This set of campaigns portrayed mobile users surrounded by caring
8/2/2019 Amit Air Tel
51/104
family members. Says Sachdev: The new campaign and
positioning was designed to highlight the relationship angle and
make the brand softer and more sensitive.
As it looks to expand its cellular services nationwide to eight new
circles apart from the seven in which it already operates Bharti is
now realizing that there are new compulsions to rework the AirTel
brand, and a new exercise is being launched to this effect. Right
now, the company is unwilling to discuss the new positioning in
detail. But broadly, the focus is on positioning AirTel as a power
brand with numerous regional sub-brands reflecting customer needs
in various parts of the country.
If AirTel is becoming more humane and more sensitive as a brand,
Bharti has also understood that one common brand for all cellular
operations might not always work in urban markets that are now
getting increasingly saturated.
To bring in new customers, the company decided that it needed to
segment the market. One such experiment, launched last year, is
Youtopia, a brand aimed at the youth in the 14 to 19 age bracket
and for those who are young at heart. With its earlier positioning,
AirTel was perceived as a brand for the well-heeled older customer;
8/2/2019 Amit Air Tel
52/104
there was nothing for younger people. With Youtopia, AirTel hoped
to reverse that.
In order to deliver the concept, AirTel offered rock bottom tariff rates
(25 paise for 30 seconds) at night to Youtopia customers a time
when they make the maximum number of calls. It also set up
merchandising exercises around the scheme like a special portal
for young people to buy things or bid for goods.
The company is now looking at offering other services at affordable
prices to this segment which include music downloads on the mobile
and bundling SMS rates with normal calls to make it cheaper for
young people to use.
The other experiment that Bharti has worked on is to go in for
product segmentation through the Tango brand name. The brand
was created to offer mobile users Internet-interface services or what
is known as WAP (Wireless Application Protocol).
The idea was to bring Internet and mobile in perfect harmony. The
name was chosen from the popular movie title It Takes Two To
Tango: basically, you need the two services to tango to offer
customers a new choice, says Sachdev.
8/2/2019 Amit Air Tel
53/104
This, however, had less to do with the branding exercise as with
inefficiency of service (accusingly slow download speeds) and the
limited utility of WAP services.
Subsequently, the ads were withdrawn, but the company re-iterated
that the branding exercise could be revived because Tango will be
the brand to offer GPRS services or permanent Internet
connectivity on the mobile phone which AirTel is expected to
launch soon.
The Magic:
Perhaps the more ambitious experiment has been with Magic the
pre-paid card. The idea was to make the brand affordable,
accessible and, most importantly, feasible as a means of expanding
the market even faster.
PHASE I
Magic was aimed at bringing in infrequent users of a mobile phone
into the market and assure him that he would have to pay only if he
made a call. Such a customer used the phone sparingly mostly
for emergencies and was not willing to pick up a normal mobile
connection with its relatively high rentals (pre-paid cards do not
include rental charges).
8/2/2019 Amit Air Tel
54/104
To achieve its objectives Bharti did three things.
One, the product was made available at prices ranging
from Rs 300 to Rs 3,000 with no strings attached and was
simple to operate.
Two, the product was made accessible and distributed
through small stores, telephone booths and even kirana shops
so that the offering was well within arms reach.
Third, to make the product more approachable to the
customer, the company came with vernacular ad campaigns
like Magic Daalo Say Hello which appealed to local
sensibilities.
This apart, the company roped in VIDYA BALAN and R
MADHAVAN for a major ad campaign all across Delhi, a ruse that
saw the number of subscribers go up from 5.47 lakh to 12 lakh
today, overtaking Essars branded pre-paid card Speed, which was
launched much ahead of Magic. The company is now re-working its
Magic strategy even further.
Earlier, the branding strategy was aimed at roping in only interested
customers that is, customers who were already inclined to opt for
mobile services. But now, with basic service providers having been
8/2/2019 Amit Air Tel
55/104
allowed limited mobility at far cheaper rates, mobile service
providers could find themselves under threat again.
That is why the new exercise is aimed at co-opting non-adopters.
While the exact strategy is under wraps, insiders say the new
branding strategy would be aimed at offering them value which they
had not perceived would be available from using a pre-paid card.
PHASE II -
Bharti used AirTel Magic to build a strong value proposition and
accelerate market expansion through Indias first national pre-paid
card TV brand campaign
First time ever in India - any pre-paid card brand goes on TV
A combination of the film genre exposed through the TV medium
designed to connect with the masses of India
Youth based - romance driven strategy platform makes the value
proposition of AirTel Magic - Mum kin Hai come alive
All elements - user imagery, context, tone & language created to
connect the category to the lives of the SEC B & SEC C segment
the middle class non-mobile user.
8/2/2019 Amit Air Tel
56/104
AirTel Magic positions itself on the platform of being excellent for
emergency situations - increasing productivity as a part of
everyday life.
Shahrukh Khan makes everything in life possible while
romancing pretty Kareena Kapoor with AirTel Magic, Indias
leading pre-paid mobile card.
AirTel today unveiled its strategy for market expansion with the
launch of its new AirTel Magic pre-paid card brand campaign
Magic hai to Mum kin hai. The strategy is targeted at the non-user
segment defined as young adults, 15-30 years of age; in the Sec B
& C segment is aimed at accelerating market expansion. The value
proposition is centered around a persons desire to make all his /
her dreams, ambitions & aspirations instantly possible. The new
campaign for AirTel Magic is all about empowering millions of
Indians to be on top of their lives.
The brand is positioned to be relevant to the mass-market who want
to make all their dreams, hopes & desires come alive instantly.
(At just Rs.300/- per month AirTel Magic is so easy to buy.)
Improving productivity, letting you befriend the world and opening
up new horizons. It gives you the freedom to control your life in a
way never possible before. Indeed, anything that you think is
8/2/2019 Amit Air Tel
57/104
possible is possible with AirTel Magic. The new brand slogan
Magic hai to Mum kin hai has been specially created to capture
this effectively.
This strategy is designed to help us talk to this segment directly in
the tone, manner & language of the masses. The Mum kin hai
value proposition will help us expand the market and gain a higher
percentage of market shares in the process.
The brand ambassadors Shahrukh Khan and Kareena Kapoor
embody this can do or Mumkin Hai spirit (infact that is the reason
they were selected as brand ambassadors). Shahrukh rose from a
TV actor to become Indias top film star and national heartthrob.
Kareenas success is due to her attitude, talent, hard work and the
sheer ability to make a mark in such a short time. Both these stars
have said Mum kin hai and made it happen for themselves.
The genre of this new strategy & campaign is Hindi cinema led.
This genre connects millions across India. The spirit of romance,
dancing the Indian cinema, well known to most as Bollywood,
holds millions of Indians together as one.
The new TV campaign of AirTel Magic crafted in the Hindi film
idiom, magnifies the empowering optimism of Mum kin Hai, in the
endearing situation of a boy-girl romance. Where Sharukh Khan,
8/2/2019 Amit Air Tel
58/104
sets his eyes on Kareena Kapoor and wins her love with the help of
AirTel Magic. (Poignantly conveying that special feeling we all get
when a dream is made possible and a victory of the heart is won).
The strategy & new brand campaign is targeted at the large
untapped base of intending mobile customers from Sec A, B & C.
The estimated addressable market of such customers in the next
two years is around 25 million in AirTels 16 states. The new
strategy aims at correcting the perception that the mobile category
is useful mainly for business or work related scenarios.
The new strategy, brand positioning & brand slogan is an outcome
of an extensive nationwide research and is an integral part of AirTel
Magics new multi-media campaign. The campaign has been
created by Percept Advertising.
8/2/2019 Amit Air Tel
59/104
PHASE III -
Bharti used AirTel Magic to build a strong value proposition and
accelerate market expansion through Indias first national pre-paid
card TV brand campaign
First time ever in India - any pre-paid card brand gives such
freedom to recharge any value
A combination of the film genre exposed through the TV medium
designed to connect with the masses of India
Youth based - romance driven strategy platform makes the value
proposition of AirTel Magic - Aisi azaadi aur kahan? come alive
Shahrukh Khan makes everything in life possible AirTel today
unveiled its strategy for market expansion with the launch of its
new AirTel Magic pre-paid card brand campaign Magic hai to
Mum kin hai. . The value proposition is centered around a
persons desire to make all his / her dreams, ambitions &
aspirations instantly possible. The new campaign for AirTel
Magic is all about empowering millions of Indians to be on top of
their lives.
The brand is positioned to be relevant to the mass-market who want
to make all their dreams, hopes & desires come alive instantly .At
8/2/2019 Amit Air Tel
60/104
a amount of your choice you can recharge your account with
available validity time .Improving productivity, letting you befriend
the world and opening up new horizons. It gives you the freedom to
control your life in a way never possible before. Indeed, anything
that you think is possible is possible with AirTel Magic. The new
brand slogan Aisi azadi aur kahan has been specially created to
capture this effectively.
Amount
Servi
ce
Processin
g
Talk
Time
Validi
ty
(Rs.)
Tax
(8%)
Fees(Rs.
) (Rs.)
(Day
s)54 4 25 25 560 4.44 25 30.56 5
75 5.56 25 44.44 5100 7.41 25 67.59 5125 9.26 50 65.74 10150 11.11 50 88.89 10175 12.96 50 112.04 10200 14.81 50 135.19 10216 16 85 115 20225 16.67 85 123.33 20250 18.52 85 146.48 20275 20.37 85 169.63 20300 22.22 85 183.78 20
Amount
Servi
ce
Processin
g
Talk
Time
Validi
ty
(Rs.)
Tax
(8%)
Fees(Rs.
) (Rs.)
(Day
s)
324 24 150 150 30
8/2/2019 Amit Air Tel
61/104
350 25.93 150 174.07 30360 26.67 150 183.33 30375 27.78 150 197.22 30400 29.63 150 220.37 30
425 31.48 150 243.52 30475 35.19 150 289.81 30500 37.04 150 312.96 30525 38.89 150 336.11 30540 40 150 350 30600 44.44 150 405.56 30650 48.15 150 451.56 30700 51.85 150 498.15 30775 57.41 150 567.59 30
800 50.36 150 580.74 30
( Rs.)
Tax
(8%)
Fees(Rs.
)
(Rs.
)
(Day
s)850 62.96 150 637.04 60900 66.67 150 683.33 60
1000 74.07 150 775.93 601080 80 150 850 601200 88.89 150 961.11 60
1300 96.3 150 1053.7 601400 103.7 150 1146.3 601500 111.11 150 1238.89 601800 133.33 150 1516.67 602000 148.15 150 1701.85 602160 160 150 1850 603000 222.22 150 2627.78 605000 370.37 300 4329.63 3666000 444.44 300 5255.56 366
7000 518.52 300 6181.48 3668000 592.59 300 7107.41 3669000 666.67 300 8033.33 3669999 740.67 300 8958.33 366
Other Brand Building Initiatives:-
8/2/2019 Amit Air Tel
62/104
The main idea is to stay ahead of competition for at least six
months. Working on the above game plan Bharti is constantly
coming up with newer product offerings for the customers.
The focus, of course, is to offer better quality of service.
To make the service simpler for customers using
roaming facilities, Airtel has devised common numbers for
subscribers across the country for services like customer care,
food services and cinema amongst others.
It will also launch a unified billing system across circles
so, customers moving from one place to another do not have
to close and then again open new accounts at another place.
To assist customer care personnel to deal with
subscriber queries, a storehouse of 40,000 frequently asked
questions and their answers have been stored on the
computers.
Bharti expects that most of its new customers (one
estimate is that it would be 60 to 70 per cent of the total new
subscriber base) would come from the pre-paid card segment.
So, they must be given value-added products and services
which competitors dont provide.
8/2/2019 Amit Air Tel
63/104
Bharti, for the first time for a cellular operator, has
decided to offer roaming services even to its pre-paid
customers, but the facility would be limited to the region in
which they buy the card. To ensure that customers dont
migrate to other competing services (which is known as churn
and ranges from 10 to 15 per cent of the customer base every
month), the company is also working on a loyalty program.
This will offer subscribers tangible cash benefits depending
upon their usage of the phone.
The loyalty program will not be only for a badge value,
it will provide real benefits to customers. The idea is to create
an Airtel community.
Another key area which Bharti is concentrating its
attention upon is a new roaming service launched in Delhi
under which calls of a roaming subscriber who is visiting the
city will be routed directly to his mobile instead of traveling via
his home network.
The company also offers multi-media messaging
systems under which customers having a specialized phone
with a in-built camera can take pictures and e-mail it to friends
8/2/2019 Amit Air Tel
64/104
or store it in the phone. The cost per picture is between Rs 5
to Rs 7.
Bharti is also aware that it has to make owning a ready-
to-use cellular service much easier than it is today. A key area
is to increase the number of activation centers. Earlier Bharti
had 250 Airtel Connect stores which were exclusive outlets
(for its services) and about 250 Airtel Points which were kiosks
in larger shops. Now activation can be done by all of them,
and not only by Connect outlets, all within 15 to 20 minutes. In
comparison, the competition takes two to four hours.
Pre- paid cards are really catching up with the mobile
phone users and it is actually helping the market to increase.
First, they are easier to obtain and convenient to use. Unlike
post-paid, one need not pay security deposits for picking up a
pre-paid card. It is often available even with paanwalas. As
befits a fast-moving consumer service, the game is now
moving beyond price to expanding distribution reach and
servicing a well-spread-out clientele with technology and
strategic alliances. Bharti is focusing on two factors to make
pre-paid cards more attractive. Keeping the entry cost low for
consumers and making recharging more convenience.
8/2/2019 Amit Air Tel
65/104
Bharti is in the process of launching a new system in
alliance with Mumbai-based company Venture Infotech which
will enable a pre-paid card user to renew his subscription by
just swiping a card. The system will not only save users the
hassle of going out and buying a card every time it expires but
also enable mobile companies to reduce the cost of printing
and distributing cards.
Bharti Televentures has tied up with 'Waiter on wheels,'
a company delivering food at home, to reach its Magic pre-
paid cards to subscribers' doorsteps. The company is also
joining hands with local grocery shops which will enable users
to recharge their cards by just making a phone call to the
shop. Apart from improving the convenience of recharging,
mobile operators are beefing up their distribution channels.
The company is constantly innovating to enhance the value
proposition for its pre-paid service. They are leveraging
technology to expand their distribution network and deliver
round-the-clock recharge options to its MOTS (Mobile On the
Spot) subscribers.
Bharti Cellular has also launched a special service, Care
Touch, for high-value, corporate customers, providing them
8/2/2019 Amit Air Tel
66/104
with instant, single-point access for any assistance they
require. Customers can dial 777 and enjoy a slew of services,
which includes easier payment of bills, service on priority
basis, and value-added services without any additional paper
work. Bharti Cellular is offering a range of services without
going through an interactive voice recorder ensuring that they
save time. Dedicated Care Touch executives are expected to
assist customers with any service on priority basis. Besides
the regular proactive reminder calls for bill payment,
customers can also call Care Touch for bill payments at free of
cost.
AirTel presented MTV Inbox; the first on-air SMS
based interactive music dedication show exclusively for AirTel
and AirTel Magic customers. Highly interactive VJ based show
with real-time feedback mechanism. Both brands joined hands
to target the high growth youth segment.
8/2/2019 Amit Air Tel
67/104
8/2/2019 Amit Air Tel
68/104
FINDINGS AND ANALYSIS
Age Group Graph
As we can see from the above graph, the people who are in the age
group of 21-28 years are the ones who are the maximum users of
mobile phones. This segment is the one which gives maximum
business to the mobile operators. This segment constitutes the
young executives and other office going people. They are 65% of
the total people who were interviewed. The next age group are the
people who are 28-35 years old. They are 20% of the total. They
are those who are at home or have small business units etc. And
the next age group is the youngest generation who are 15-21 years
old. They are school and college going students and carry mobile
phones to flaunt. They are 15% of the total interviewed people.
Occupation Graph
AGE GROUP
15-21
15%
21-28
65%
28-35
20%
8/2/2019 Amit Air Tel
69/104
As the above graph shows that 55% of the total people interviewed
are working. So, these people are the ones who are the maximum
users of mobile phones. They are the young executives, managers,
Tele - callers etc. who require mobile for their official purposes. The
next category is the households, who are either housewife, small
units which operate from their homes etc. They are 20% of the
whole. The next segment is the students. They are 15% of the
whole. And 10% of the whole is categories who are the
professionals.
Service Provider Graph
17%
53
%
15
%
15
%
OCCUPATION
STUDENTS EXECUTIVES
HOUSEHOLDS OTHERS
8/2/2019 Amit Air Tel
70/104
The above graph shows a slice of 50%. These are the total no. of
people who are using Airtel. It seems that people are more aware of
Airtel than any other brand. The next popular brand is Hutch. 305 of
the people interviewed had Hutch connections. The next popular
brand was Idea. 15% people had Idea connections. As it came very
late in the market when Airtel had established it self very well. So,
that could be one of the reasons of such a low percentage. The
remaining 5% had trump connections.
Customer Service At Airtel Graph
15%
50%
30%
5%
SERVICE PROVIDER
IDEA AIRTEL HUTCH OTHERS
8/2/2019 Amit Air Tel
71/104
As the above graph clearly shows that customer services at Airtel
seems poor. 60% of the people are dissatisfied with the customer
services provided by Airtel. They are the ones who have the
maximum share in the market but they are lagging behind in the
customer services. 10% of the people were fully dissatisfied with the
customer services of Airtel. This could leave an impact on the mind
of the consumer. He can even switch over his brand. 20% of the
people seemed partially satisfied with the customer services and
only 10% seem to be fully satisfied with Airtels customer services,
which is a very small amount.
Type Of Card Graph
CUSTOMER SATISFACTION LEVEL
20%
10%
60%
10%
FULLY PARTIALLY
DISSATISFIED FULLY DISSATISFIED
8/2/2019 Amit Air Tel
72/104
Cash cards seemed quite popular among the people interviewed.
85% of the total mobile users were having cash card connections.
This means that the cash cards should be easily and readily
available in the local markets. Airtel should make sure that Magic is
available in each and every nook and corner of the market. 15% of
the people were having sim connections which are the regular bill.
TYPES OF CARDS
CASH
CARD
85%
SIM
CARD
15%
8/2/2019 Amit Air Tel
73/104
Monthly expense graph
People on an average spend RS 500 per month as their mobile
phone expense. 64% people spend this amount. 24% people spend
RS 300 per month as their monthly mobile expense. And the
remaining 12% had an expense more than RS 1000, they could the
ones having sim connections or having cash cards and having a lot
of business calls on their mobiles.
Monthly Expense
12%
64%
24%
Rs 600
Rs 450Rs 200
8/2/2019 Amit Air Tel
74/104
Awareness About WLL Graph
WLL seemed to be a new word for many of the people. 45% of the
people were not at all aware of such a technology. So, in order to
get the answer for this question they were first explained the
concept. Only, 55% people knew what WLL is all about.
AWARENESS ABOUT WLL
YES
55%
NO
45%
8/2/2019 Amit Air Tel
75/104
Awareness of WLL Players Graph
Reliance was the brand which was popular amongst the interviewed
people. As Reliance had done so much advertising and has it
banners and hoarding spread all over Delhi. So, this could be one
the reasons of its popularity. Tata was hardly a known brand in this
new field. Possibly, because of less promotions done by them as
compared to Reliance.
On the basis of analysis of the questionnaire I have found that the
maximum no. of people who use mobile phones is in the age group
of 20 to 28. Who are the young executives and other office goers?
AWARENESS OF WLL PLAYERS
RELIANCE
85%
TATA
INDICOM
15%
8/2/2019 Amit Air Tel
76/104
They spend a maximum of RS. 500 as their mobile expense.
There is more no. of prepared cards than post paid cards. The
mobile users want to spend money side by side than to spend
money at the end of the month on a big bill.
Now when I compared Airtel with its competitor from the point of
view of the consumer I found that on the basis of Tariff plan, value
added services and billing accuracy Airtel is at par or ahead of its
competitor but in the case of customer care and availability they lag
behind there competitors. As, Airtel has a hold in the market
because it has the maximum no. of connections, so it must improve
upon it customer services. As far as WLL is concerned people are
aware about it but not many people are aware about Tata. They
only know more about Reliance. People at this point of time are not
interested to switch over from GSM to WLL.
8/2/2019 Amit Air Tel
77/104
SUGGESTIONS
Following are the few suggestions to AIRTEL for improving
the market share and image of the products concerned.
1. PRODUCT
*Modification must be brought about in AIRTEL, in
terms of quality. Its demand should be increased.
2. PLACE
* The brands must be made available easily in, PCO &
general stores.
3. PROMOTION
*Company must undertake extensive promotional
activities like advertisements must be released in
different Medias to create brand awareness.
*Free samples should be distributed among the
prospects. Sales promotion tools like gifts, contests and
coupons must be given to retailers as well as
customers and prospects.
* Catalogues should be distributed amongcustomers.
4. Innovative policy:
The company must provide innovative tariff policy
to the customer so as to retain the customer .
8/2/2019 Amit Air Tel
78/104
SWOT ANALYSIS
Strengths
Being one of the largest companies in India the company
has achieved a degree of focus in its core business of its
products.
It has a strong brand name, superior quality products and
an enviable distribution network.
It has a clear and well-defined organization structure and
limits of financial authority.
Increase in advertisement spends affect the companys
margins.
The companys bottom line falls victim to the bloated and
highly paid workforce, which affects its margins.
Weakness:
Little efforts over the Advertising of products.
Distribution channel is not accurately categorized.
Premium priced products, hence cant compete in low price
segment.
No separate strategy for rural market.
8/2/2019 Amit Air Tel
79/104
Opportunities:
The company's financial performance can receive a major
boost from its cost reduction efforts.
There is a lot of scope of product and market
diversification.
Exports of products will also have huge chances in the
coming years.
Airtels business has ample scope for gaining market share
from the unorganized sector. Rural penetration too holds
vast potential to bring about growth.
Threats
The slowdown in the economy has restricted topline growth
of most FMCG majors and for Airtel also it will be difficult to
maintain historical growth rates in such a depressed
scenario.
Companys major raw mater ials are influenced by
government policies / controls as well as vagaries of the
monsoons. Fluctuations in the prices of raw materials
would have significant impact on costs and margins of the
company.
8/2/2019 Amit Air Tel
80/104
Moreover, inordinate hike in Broad Band Internet products
would also increases companys production and distribution
cost.
8/2/2019 Amit Air Tel
81/104
RECOMMENDATION
I would like to adduce the following recommendation thatmay prove to be potential for the benefit of the company:
The company should modify its credit policy as they
only target the cash paying customers who are not
easy to trace.
First and the foremost the company should concentrate
on retaining the existing customer rather than seeking
new market or customer by offering innovative and new
tariff policies for the mobile.
The company should implement the policy before the
adoption of those policy by their competitor. In nutshell
the company should be pioneer in implement the policy
so as to skim the market before the competitor.
The company should makes its marketing strategy
flexible enough in order to face competition.
The company rate policy must be flexible enough to
catch new customers because if company offers lower
price to a new customer then he may continue buy the
goods and can be a permanent customer for the
company.
The company should take the opinion of exporters from time
to time to know what problems they are facing from the
8/2/2019 Amit Air Tel
82/104
companys side? And if any change they require in present
supplying condition?
8/2/2019 Amit Air Tel
83/104
LIMITATIONS
No project is without limitations and it becomes essential to
figure out the various constraints that we underwent during
the study. The following points in this direction would add to
our total deliberations:-
1During the study, on many occasions the respondent
groups gave us a cold shoulder.
2.The respondents from whom primary data was gathered
any times displayed complete ignorance about the complete
branded range, which was being studied.
3. Lack of time is the basic limitation in the project.
4. Some retailers/whole sellers refuse to cooperate with the
queries.
8/2/2019 Amit Air Tel
84/104
5. Some retailers/whole sellers gave biased or incomplete
information regarding the study.
6. Money played a vital factor in the whole project duration.
7. Lack of proper information and experience due to short
period of time.
8. Some retailers did not answer all the questions or do not
have time to answer.
8/2/2019 Amit Air Tel
85/104
CONCLUSION
After analyzing the findings of the research, I can conclude that
Airtel lagged behind its competitors as far as customer service and
availability is concerned. The maximum no. of people who use the
mobile is in the age group of 20 to 28. Cash cards are the most
popular type of mobile connections, as they are consumer friendly
and recharging the connection is not a problem.
Maximum no. of people spends RS 500 on their connections. As
Airtel is the only company having the maximum no of mobile
connections so it must seriously look into the loop holes of the
existing customer service department.
As we know that now airtel has already launched its product with
logo Aisi azaadi aur kahan has already became popular in
market. So we can say that inspite of so many competitor in the
market Airtel is having a good position just because every time, it
tries its best to understand the need of its important customer.
BIBLIOGRAPHY
8/2/2019 Amit Air Tel
86/104
In this project report, while finalizing and for analyzing quality
problem in details the following Books, Magazines/Journals and
Web Sites have been referred. All the material detailed below
provides effective help and a guiding layout while designing this text
report.
Books :
Principles of Marketing Philip Kotler
Market Research D.D. Sharma
Research Methodology C.R. Kothari
Websites:
www.airtelworld.com
www.india.com
Magazines:
Airtel (2 July to 10 July 2004)
Airtel India page of HT paper (Thursday 1December 2004)
Cowards India (26 December to 4 Jan. 2004)
QUESTIONNAIRE
Dear Sir/Madam,
http://www.airtelworld.com/http://www.india.com/http://www.airtelworld.com/http://www.india.com/8/2/2019 Amit Air Tel
87/104
I am a student of MBA of RAJ KUMAR GOEL
ENGINEERING COLLEGE doing my Research report project on
strategy and performance of Airtel. Please give your precious time
for filling these details.
Q.1 For how long you have been using Airtel Product?
0-2 Years 2-5 Years 5-10 Years More than 10 years
Q.2 Are you using other product instead of Airtel?
Yes No
Q.3 Among them, which Brand you, prefer most?
Idea Vodafone Airtel
Q. 4 How would you rate the experience with Brand?
Idea Vodafone Airtel
Q.5 Do you collect any information search before making purchase?
Yes No.
Excellent Good Average
BelowAverage
8/2/2019 Amit Air Tel
88/104
Q.6 If yes, which sources are used?
Magazines Dealers
Sales Executives Operators reference Pamphlets and catalogue Reference from friends and relatives Any other
Q.7 What are the features you look for in a product before making
purchase decision? Give preferences (1-Highest, 6- least)
Brand credibility Price and Discount After sales services and parts, network Value for money Vehicle performance Add on features or ergonomics of design
Q.8. Which of these marketing / sales schemes attracts you whilepurchasing any connection?
Good Network Discount scheme Service package Any other
Q.9 If you have to purchase a new connection or product in nearfuture, which Brand will you go for and why?
___________________________________________________________________________________________________________________________________________________
8/2/2019 Amit Air Tel
89/104
Q.10 Are you aware of various promotional activities being run byAirtel, if yes then how? Are you satisfied with thesepromotional activities?
Customer Care By Ad Films By Camp 24 hrs call center
services
Q.11 How would you rate Airtel performance as your
expectation on 5 points scale (5 Highest?)
1 2 3 4 5 After Sale service Maintenance Product as per expectation
Q.12 What are you suggestions for improving the product quality,service availability and parts availability?
____________________________________________________________________________________________________________________________________________________________________________________________________
Very
Satisfied
Satisfie
d
Somewha
t Satisfied
Not
satisfied
8/2/2019 Amit Air Tel
90/104
8/2/2019 Amit Air Tel
91/104
Scope of study
1. To know the marketing mix of the airtel company.2. To know the customer satisfaction of airtel
company.3. To study the brand image of airtel company.4. To know the recent trend in telecom industry.
8/2/2019 Amit Air Tel
92/104
8/2/2019 Amit Air Tel
93/104
8/2/2019 Amit Air Tel
94/104
8/2/2019 Amit Air Tel
95/104
8/2/2019 Amit Air Tel
96/104
Compa
ny
Profile
8/2/2019 Amit Air Tel
97/104
Findings andAnalysi
s
8/2/2019 Amit Air Tel
98/104
Sugges
tions
8/2/2019 Amit Air Tel
99/104
SWOT
Analysi
s
8/2/2019 Amit Air Tel
100/104
Recommendation
8/2/2019 Amit Air Tel
101/104
Limitat
ions
8/2/2019 Amit Air Tel
102/104
Conclu
sion
8/2/2019 Amit Air Tel
103/104
Bibliogr
aphy
8/2/2019 Amit Air Tel
104/104
Question
naire