Final Project Report Airte Diptish

8/6/2019 Final Project Report Airte Diptish

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DECLARATION

I do hereby declare that, the project work entitled PERFORMANCE

VARIANCES AND REDUCTION IN DISTRIBUTION IN BHUBANESWAR

Bharti Airtel Limited , submitted by me, has been carried out at Bharti Airtel

Limited , Bhubaneswar under the guidance of Mr . Sandeep Das , Territory Sales

Manager , Mr . George Benzamin Ekka , Zonal Sales Manager, Mr. Rakesh Kumar

Singh , Zonal Business Manager , Bharti Airtel (Orissa)Limited and Mr Srikant Das ,Faculty of KIIT School Of Management , is a original work done by me and has not

been published in any form till date.

Diptish Prasad Pradhan

Roll No: 9202162

MBA -1

Batch : 2009 - 2011


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EXECUTIVE SUMMARY

The Indian telecommunications has been zooming up the growth curve at a feverish

pace, emerging as one of the key sectors responsible for India's resurgent economic

growth even in this recession hit Economic condition. Mobile telecommunications,

supported by a network covering about 97% of the countrys population and 82% of

the land area, has become one of the most vibrant services sub-sectors in the

economy. Keeping competition on the forehead Airtel one of the leading telecomservice providers in India had put its journey of glory towards Orissa in December,

2004, and now this is the top brand among other telecom service providers of Orissa.

In this short span of 5 years it has not only surpassed the previous well established

companies like government owned BSNL but also one of the most prominent Anil

Dhirubhai Ambani Groups Reliance India mobile brand. Right now it commands a

huge share of 33% of the total mobile phone users and more than 2600 TransmissionTowers to its credit surpassing nearest rival that is BSNL with 17% customers and

1800 transmission towers.

The First part of the project covers many aspect of Indian Telecom industry right

from old days when it first made its debut in form of Telegraph and its journey till

modern day revolutionary 3G enabled network.

The second part is the most important part of this project deals with my contributions

to the company in form of marketing in which I am visited at least 600 retail outlets

to find out the distribution gap and also have applied all my theoretical concepts in

this area to understand it properly. I visited all the retailers with a questionnaires

which help us to calculate the actual performance of Airtel in Bhubaneswar market

within a period of eight weeks.


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TABLE OF CONTENTS

Acknowledgement

Executive Summary

Introduction

History of Telecommunication

Indian Telecom Industry

Existing Players

Corporate StructureCore Marketing Strategy

ANALYSIS PART:

Product Life Cycle

BCG Matrix

SWOT Analysis

ANSOFF Matrix

Porters Model

AIRTEL IN ORISSA

OBJECTIVE


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GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the

CDMA sector is dominated by Reliance and Tata Indicom. Opening up of

international and domestic long distance telephony services are the major growth

drivers for cellular industry. Cellular operators get substantial revenue from these

services, and compensate them for reduction in tariffs on airtime, which along with

rental was the main source of revenue. The reduction in tariffs for airtime, national

long distance, international long distance, and handset prices has driven demand.

The role of telecom in various spheres of life is quite indispensable now a days.Telecom as a quick ,cheap & effective mode of communication has overtaken every

other communication tools. This has so easily integrated into our lives and has become

so widely used that even the present global economic downturn had no effect on this

industry. Vodafone , a UK based company is rapidly expanding its market share after it

took over Hutch. Airtel , the largest player in this sector is very soon planning to go

global after the merger with South Africa based MTN Group , its second international

venture after entering the Sri-Lankan market. Tata Tele services is going to launch its

GSM services very soon. Other are also expanding in similar fashion.

The role of telecommunications in industrial segment has shown a steep growth from

late nineties .It is now the most widely used mode of communication not only by large

but small and medium enterprises. The project at Airtel Bhubaneswar involved a

complete study of the telecom usage pattern of SMEs and SEs and side by sideEstimation of the Market potential of Research in Motion developed Blackberry

handsets which is a smart phone designed specially for business class executives.

Promotion is an important part of 4Ps , this has its own importance in marketing mix.

Different types of promotional tools are used by these telecom companies which aims

at creating awareness about the products and services being offered by these

companies. Quite a huge amount of money, labor and time is spent on these campaigns.


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The ultimate goal of all these hard work is increasing sales. Any campaign is not

immediately converted to sales but it takes time, in the mean time these ad campaigns

first create Top of Mind Awareness (TOMA) that is it captures attention and stays in

customers mind then this is converted to Intension to Purchase (ITP), then finally the

sales takes place. It is therefore very important for these telecom companies to measure

both these parameters which helps them to design, re-design and withdraw any

campaign. This also helps in mapping our products awareness vis--vis that of

competitors. At Airtel, Bhubaneswar, I mapped the TOMA & ITP of a sample of 75

cellular phone users to access the awareness of various brands of cellular service

providers in this city to compare the awareness of customers about services provided by

Airtel vis--vis other players in this highly competitive sector.

BRIEF HISTORY OF TELECOMMUNICATION

History of Indian Telecommunications started in 1851 when the first operational landlines were laid by the government near Calcutta (seat of British power). Telephoneservices were introduced in India in 1881. In 1883 telephone services were mergedwith the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923.After independence in 1947, all the foreign telecommunication companies werenationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by thegovernment's Ministry of Communications. Telecom sector was considered as a

strategic service and the government considered it best to bring under the state'scontrol.The first wind of reforms in telecommunications sector began to flow in 1980s whenthe private sector was allowed in telecommunications equipment manufacturing. In1985, Department of Telecommunications (DOT) was established. It was an exclusive

provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companieswere created: the Videsh Sanchar Nigam Limited (VSNL) for international

telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in


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metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of theeconomy. Also, examples of telecom revolution in many other countries, whichresulted in better quality of service and lower tariffs, led Indian policy makers toinitiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give acomprehensive roadmap for the Indian telecommunications sector. In 1997, TelecomRegulatory Authority of India (TRAI) was created. TRAI was formed to act as aregulator to facilitate the growth of the telecom sector. New National Telecom Policy

was adopted in 1999 and cellular services were also launched in the same year. Then beginned the success stories of different telecom companies in India.

INDIAN TELECOM INDUSTRY

With 300 million telephone subscribers today, India now boasts of having the

second largest telecom network in the world after China. The country is adding some

8.5 million to 10 million new mobile subscribers to the network every month to also

emerge as one of the fastest growing telecom markets in the world. The telecom

industry also saw an estimated $8.5 bn in investment flow in during 2006-07 alone, of

which $550 million was in the form of foreign direct investment. All major telecom

handsets manufacturers - including Nokia, Samsung, Motorola and LG - have their

presence in India, so do leading global service companies and infrastructure majors,

such as Vodafone, Singapore Telecom, AT&T, Ericsson, Alcatel and Siemens.

The next phase of growth, experts believe, will be in the countrys vast rural areas -

a development that, they say, would be more important than the Green Revolution in

Indias farm sector in the 1970s, when the country emerged as a self-sufficient

economy in food production, driven by the introduction of hybrid seed varieties and


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new irrigation techniques. Also, with a tele-density of just eight percent in rural India,

as opposed to 50 percent in urban canters, the hinterland offers good scope for

expansion.

The Indian telecommunications has been zooming up the growth curve at a feverish

pace, emerging as one of the key sectors responsible for India's resurgent economic

growth.

India is has surpassed US to become the second largest wireless network in the

world with a subscriber base of over 300 million in April, according to the Telecom

Regulatory Authority of India (TRAI).

Segment-wise growth

Wireless segment has emerged as the preferred mode of telephone service by the

consumers, reflected in the rising share of mobile phone connections to total

connections.

1. The share of mobile phones has increased from 71.69 per cent at the end of

March 2006 to 87.68 per cent at the end of May 2008.

2. While total mobile subscriber base was 277.92 million, wire line subscriber

base was 39.05 million.

3. Consequently, overall tele-density has increased to 27.59 per cent at the end of

May 2008.


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India is likely to be second largest mobile market in the BRIC nations, with 560

million mobile users representing the next great growth curve for both mobile and

interactive marketing industries, according to a report by eMarketers.

Government Initiatives

The key to the growth of telecom in India has been liberalization, reforms and

competition. The positive regulatory framework has played a major role.

Opening the industry for private sector participation.

100 per cent FDI is permitted in telecom equipment manufacturing through the

automatic route.

FDI ceiling in telecom services has been raised to 74 per cent.

Establishment of an independent regulator - the Telecom Regulatory Authority

of India (TRAI)-for the telecom sector.

Introduction of a Unified access licensing regime for telecom services on a

pan-India basis.

Implementation of New Telecom Policy (NTP'99).

Introduction of Calling Party Pay (CPP) regime and lowering of access deficit

coupled with introduction of revenue share regime in ADC.

Introduction of Mobile Number Portability in a phased manner, starting with

the fourth quarter of 2008.

Allowing service providers to share active infrastructure.


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Department of Telecommunication: The Department of Telecommunications is

responsible for policy formulation, performance review, monitoring, international

cooperation, research and development and grant of licenses to operators for

providing basic and value added services in various cities and telecom circles as per

approved policy of Government. The Department also allocates frequency and

manages radio communication in close coordination with international bodies. It is

also responsible for enforcing wireless regulatory.

Telecom Regulatory Authority of India (TRAI)

The Telecom Regulatory Authority of India (TRAI) was formed in January 1997

with a view to provide an effective regulatory framework and adequate safeguards

to ensure fair competition and protection of consumer interests. The Government is

committed to a strong and independent regulator with comprehensive powers and

clear authority to effectively perform its functions.

FUTURE

The Indian telecom industry is expected to reach a size of Rs 344,921 crore by 2012

at a growth rate of over 26 per cent, and generate employment opportunities for

about 10 million people during the same period, according to a report.

The telecom industry had a market size of Rs 105,287 crore in 2006. The sector

would create direct employment for 2.8 million people and for 7 million indirectly,

according to a Frost and Sullivan report. Despite record growth over the last 12


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months, only 21.85% of the countrys 1.1 Billion population owns a telephone,

which means the growth in new subscriber additions will continue and even

accelerate.

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth, targeting 500 million telephone

subscribers by 2010 and 650 million by 2012 which is currently 250 million. Most

of the expansion in subscribers is set to occur in rural India. Indias rural telephone

density has been languishing at around 1.9%, so, if 70% of total population is rural,the scope for growth in this Industry is unprecedented.

Major market trends

The telecoms trends in India will have a great impact on everything from the humble

PC, internet, broadband (both wireless and fixed), cable, handset features, talking

SMS, IPTV, soft switches, and managed services to the local manufacturing and

supply chain. This report discusses key trends in the Indian telecom industry, their

drivers and the major impacts of such trends affecting mobile operators,

infrastructure and handset vendors.

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself). They prefer

wireless services compared to wire-line services, which is evident from the fact that

while the wireless subscriber base has increased at 75 percent CAGR from 2001 to

2006, the wire-line subscriber base growth rate is negligible during the same period.

In fact, many customers are returning their wire-line phones to their service


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Monthly Cellphone Addition: 15.41 million (Jan 2010)

Teledensity : 34.5% (Jan 2010)

Projected teledensity : 500 million, 40% of population by 2010.

Broadband connection: 6.22 million (March 2010) "Present scenario" In the fixed

line arena, BSNL and MTNL are the incumbents in their respective areas of

operation and continue to enjoy the dominant service provider status in the domain

of fixed line services. For example BSNL controls 79% of fixed line share in the

country.

On the other hand, in the mobile telephony space, Airtel controls 21.4% subscriber

base followed by Reliance with 20.3%, BSNL with 18.6%, Vodafone with 14.7%

subscriber base (as per June 2005 data)


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EXCITING TIMES AHEAD FOR INDIAN TELECOM INDUSTRY

With 300 million telephone subscribers today, India now boasts of having the second

largest telecom network in the world after China. The country is adding some 8.5

million to 10 million new mobile subscribers to the network every month to also

emerge as one of the fastest growing telecom markets in the world. The telecom

industry also saw an estimated $8.5 bn in investment flow in during 2006-07 alone, of

which $550 million was in the form of foreign direct investment. All major telecom

handsets manufacturers - including Nokia, Samsung, Motorola and LG - have their

presence in India, so do leading global service companies and infrastructure majors,

such as Vodafone, Singapore Telecom, AT&T, Ericsson, Alcatel and Siemens.

The next phase of growth, experts believe, will be in the countrys vast rural areas - adevelopment that, they say, would be more important than the Green Revolution in

Indias farm sector in the 1970s, when the country emerged as a self-sufficient

economy in food production, driven by the introduction of hybrid seed varieties and

new irrigation techniques. Also, with a tele-density of just eight percent in rural India,

as opposed to 50 percent in urban centers, the hinterland offers good scope for

expansion.

TELECOM PLAYERS EXISTING IN INDIAN MARKET

There are three types of players in telecom services:

State owned companies (BSNL and MTNL).

Private Indian owned companies ( Reliance Infocom. , Tata Teleservices


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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 Tele-Ventures Limited was incorporated on July 7, 1995 for promoting

investments in telecommunications services. Its subsidiaries operate telecom services

across India. Bhartis operations are broadly handled by two companies: the Mobility

group, which handles the mobile services in 16 circles out of a total 23 circles across

the country; and the Infotel group, which handles the NLD, ILD, fixed line,

broadband, data, and satellite-based services. In mobile, Bhartis footprint extends

across 15 circles. Bharti Tele-Ventures' strategic objective is to capitalize on the

growth opportunities 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.

MTNL

MTNL was set up in 1st April 1986 by the Government of India to upgrade the

quality of telecom services, expand the telecom network, and introduce new services

and to raise revenue for telecom development needs of Indias key metros Delhi,


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the political capital, and Mumbai, the business capital. In the past 17 years, the

company has taken rapid strides to emerge as Indias leading and one of Asias

largest telecom operating companies. The company has also been in the forefront of

technology induction by converting 100% of its telephone exchange network into the

state-of-the-art digital mode. In the year 2003-04, the company's focus would be not

only consolidating the gains but also to focus on new areas of enterprise such as joint

ventures for projects outside India, entering into national long distance operation,

widening the cellular and CDMA-based WLL customer base, setting up internet and

allied services on an all India basis. While the market for fixed wireline phones is

stagnating, MTNL faces intense competition from the private playersBharti,

Hutchison and Idea Cellular, Reliance Infocommin mobile services.

Reliance Communications

Reliance is an integrated telecom service provider with licenses for mobile, fixed,

domestic long distance and international services. Reliance Infocomm offers a

complete range of telecom services, covering mobile and fixed line telephony

including broadband, national and international long distance services, data services

and a wide range of value added services and applications. Reliance India Mobile,the first of Infocom's initiatives was launched on December 28, 2002. This marked

the beginning of Reliance's vision of ushering in a digital revolution in India by

becoming a major catalyst in improving quality of life and changing the face of India.

Reliance Infocom plans to extend its efforts beyond the traditional value chain to

develop and deploy telecom solutions for India's farmers, businesses, hospitals,

government and public sector organizations. Until recently, Reliance was permitted


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to provide only limited mobility services through its basic services license.

However, it has now acquired a unified access license for 18 circles that permits it to

provide the full range of mobile services. It has rolled out its CDMA mobile network

and enrolled large number of subscribers to be in the competition to become the

countrys largest mobile operator. It now wants to increase its market share and has

recently launched many other services. Having captured the voice market, it intends

to attack the broadband market.

TATA Teleservices

Tata Teleservices is a part of the Tata Group, which has 93 companies, over

employees and more than million shareholders. Tata Teleservices provides basic

(fixed line services), using CDMA technology in six circles: Maharashtra (including

Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has a

large subscriber base too giving tough competition in CDMA. It has now migrated to

unified access licenses, by paying a Rs. 5.45 billion ($120 million) fee, which

enables it to provide fully mobile services as well. The company is also expanding its

footprint, and has paid Rs. 4.17 billion ($90million) to DoT for 11 new licenses

under the IUC (interconnect usage charges) regime. The new licenses, coupled withthe six circles in which it already operates, virtually gives the CDMA mobile

operator a national footprint that is almost on par with BSNL and Reliance Infocom.

These newly introduced circles include Bihar, Haryana, Himachal Pradesh, Kerala,

Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & West and West Bengal.

Vodafone


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Hutchs presence in India dates back to late 1992, when they worked with local partners

to establish a company licensed to provide mobile telecommunications services in

Mumbai. Commercial operations began in November 1995. Between 2000 and March

2004, Hutch acquired further operator equity interests or operating licences. With thecompletion of the acquisition of BPL Mobile Cellular Limited in January 2006, it now

provides mobile services in 16 of the 23 defined licence areas across the country. Hutch

India Vodafone has benefited from rapid and profitable growth in recent years. It has

already entered the Bhubaneswar market recently and is giving tough competition to

other players in the market whether it be Postpaid, prepaid or Blackberry services.

Idea Cellular

Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand

designs to become a national player, but in doing so is likely to become a thorn in the

side of Reliance Communications Ltd. IDEA operates in eight telecom circles, or

regions, in Western India, and has received additional GSM licenses to expand its

network into three circles in Eastern India - the first phase of a major expansion plan

that it intends to fund through an IPO, according to parent company Aditya Birla Group.

Idea has increased its presence in Karnataka and Punjab by acquiring The Spice

Telecom. Idea was launched in Bhubaneswar recently in the month of April 2009.


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Aircel

The Aircel group is a joint venture between Maxis Communications Berhad of

Malaysia and Apollo Hospital Enterprise Ltd of India, with Maxis Communications

holding a majority stake of 74%.

Aircel commenced operations in 1999 and became the leading mobile operator in

Tamil Nadu within 18 months. In December 2003, it launched commercially in

Chennai and quickly established itself as a market leader a position it has held

since.

Aircel began its outward expansion in 2005 and met with unprecedented success in

the Eastern frontier circles. It emerged a market leader in Assam and in the North

Eastern provinces within 18 months of operations. Till today, the company gained a

foothold in 17 circles including Chennai, Tamil Nadu, Assam, North East, Orissa,

Bihar, Jammu & Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra

Pradesh, Karnataka, Delhi, UP(West), UP(East) and Mumbai.

The Company has currently gained a momentum in the space of telecom in India post

the allocation of additional spectrum by the Department of Telecom, Govt. of India

for 13 new circles across India. These include Delhi (Metro), Mumbai (Metro),

Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra

& Goa, Rajasthan, Punjab, UP (West) and UP (East).


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Aircel has won many awards and recognitions. Voice and Data gave Aircel the

highest rating for overall customer satisfaction and network quality in 2006. Aircel

emerged as the top mid-size utility company in Businessworlds List of Best Mid-

Size Companies in 2007. Additionally, Tele.net recognised Aircel as the best

regional operator in 2008.

With over 20 million happy customers in the country, Aircel the fast growing

telecom company in India has revved up plans to become a full-fledged national

operator by end of 2009.

Virgin

Virgin Mobile brand is Indias first national youth-focused mobile service.

Virgin Mobile branded services are being offered to the Indian consumers by Tata

Teleservices through a brand franchise with Virgin Mobile. Virgin Mobile India

provides services through Tata Teleservices with experience and expertise in

designing, marketing and servicing of Virgin Mobile branded products for the

youth segment.

Market Share of Various Players

Group Company wise % market share - Mar'2010


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Sl. No.Name of

CompanyTotal Sub

Figures% Market

Share

1 Bharti Airtel 93923248 32.57%

2 Vodafone Essar 68768998 23.85%

3 BSNL 46684049 16.19%

4 IDEA 43022799 14.92%

5 Aircel 18478325 6.41%

6 Reliance Telecom 11145176 3.86%

8 Tata 4176676 1.45%

9 Uninor 2164211 0.75%

All India 288363482 100.00%

GRAPHICAL REPRESENTATION:-

Business Divisions


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VISION 2010

By 2010 Airtel will be the most admired brand in India:

Loved by more customers

Targeted by top talent

Benchmarked by more business.

"To provide global telecom services and delight customers."

VISION 2020

To build India's finest business conglomerate by 2020


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Supporting education of underprivileged children through Bharti Foundation

Strategic Intent: To create a conglomerate of the future by bringing about BigTransformations through Brave Actions.

MISSION

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

GOAL

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

business with world-class partners

To lay the foundation for building a conglomerate of future

CORE VALUES

Empowering People - to do their best

Being Flexible - to adapt to the changing environment and evolving customer needs

Making it Happen - by striving to change the status quo, innovate and energizenew ideas with a strong passion and entrepreneurial spirit

Openness and transparency - with an innate desire to do good

Creating Positive Impact with a desire to create a meaningful difference insociety.


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FOUR PILLARS

Error- free service delivery Innovative products and services Cost efficiency Unified Messaging Solutions

FEW KEY MILESTONES

Date of Incorporation - July 07, 1995 First private operator to offer fixed line telephony-June04,1998

Became a public limited company in India - February 18, 2002

First telecom company to have an all India mobile footprint

(Presence in all 23 telecom circles in India) - March 30, 2005

ACHIEVEMENTS

Bharti Airtel crosses the 100 million customer mark and becomes the fastest

private telecom company in the world.

Enters into the league of the worlds top telecom companies, moves towards

top 5 global mobile companies .

Adds last 25 Million in just 14 months, accelerating towards the 100 million

customer mark .

5, 00,000 villages covering over 95% of the population.

Indias most Customer Responsive Telecom Company Award (16-12-05).

MIS ASIA IT Excellence Award 2005 first Indian telecom company to win

this award (26-09-05).


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Bharti wins Silver Trophy at the CII National Six Sigma Awards (28-09-05).

Airtel chosen as 'Most Preferred Mobile Service' by CNBC Awaaz Consumer Awards (07-07-05).

Bharti Tele-Ventures amongst top three companies in the latest ET top 500

companies ranking. (20-06-05).

Bharti Tele-Ventures is the "Indian Mobile Operator of the Year 2005. (17-

06-05).

Bharti Tele-Ventures is the BEST INDIAN CARRIER at Telecom Asia.

(05-05-06) Wins this award for the second consecutive year.

PARTNERS

Network Equipment :

Mobile Services - Nokia, Ericsson, Huawei

Telemedia Services- Siemens, Nortel, Wipro, Cisco

Information Technology - IBM Call Centre Operations - IBM Daksh, Hinduja TMT

Teleperformance Mphasis, Firstsource & Nortel Equity Partner {Strategic} - Singtel

EXCHANGE LISTINGS

The Stock Exchange, Mumbai (BSE)

The National Stock Exchange of India Limited (NSE).


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CORPORATE STRUCTURE

COMPETITORS : BSNL (BHARAT SANCHAR NIGAM LIMITED), MTNL,

VODAFONE , BPL MOBILE , RELIANCE, IDEA, TATA INDICOM, AIRCEL.

POINTS OF DIFFERENCE :

1. Widest spread network.

2. Congestion free network.

3. Customized Service

SOME SAILENT FEATURES:


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Bhatari Airtel has emerged as the marketing leader in the mobile market.

First to launch full time roaming services in the country.

The first to launch full roaming service on prepaid in the country

It was the first to launch the multi band in a wireless network for efficient usage

of spectrum

The first to launch 32k sim cards

The first in Asia to deploy the multi band feature

It was the first to launch Easy Charge - India's first paperless electronicrecharging facility for prepaid customers.

It was the first telecom company in the world to receive the ISO 9001:2000

Certification from BRITISH STANDARD INSTITUTE.

It was the first to develop a single integrated billing system for all operations

across India.

AIRTEL BRAND ATTRIBUTES

Fresh In-touch On my side Can-do

Airtel's journey to leadership began in Delhi in 1995. Since then, Airtel has

established itself across India in sixteen states covering a population of over 600

million people. Airtel will soon cover the entire country through a process of

acquisitions and green field projects.

Thus with its better cost control and with value added benefits to its consumers

AIRTEL can maintain NO 1 position in the market.


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CORE MARKETING STRATEGY AT AIRTEL

Bharti Airtel bold strategy for the growth company business and marketing. Indiasfirst private operator to make cellular profile has an aggressive marketing strategy

in all areas of fixed and wireless telecoms

Airtels marketing strategy to penetrate different segments:

Focusing its attention on youth ,women and senior citizens, cellular service

provide Airtel unveiled its new market segmentation strategy by introducing

prepaid, postpaid plans.

Another plan was launched for the senior citizens and women

In short Airtel wants to penetrate in all the feasible segments

AIRTEL offers unparallel GPRS.

Network connectivity in rural areas along with existing circles is specially

taken care of and $15 bn was spent for this purpose.

MARKETING OBJECTIVES

o Bhartis objective is to differentiate itself in Indias highly Competitive

communications environment by ensuring customer delight through personalized

customer service and accomplishing this through a highly cost-effective business

model.


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o Bhartis expansion strategy comes at a time when Indias mobile industry is at a

crossroad. India move ranks as the fastest growing cellular market in the world

surpassing China, the worlds long time leader.

o It is becoming more apparent that wireless technology, coverage and love pricing

alone are sufficient to drive significant competitive advantage in the Indian market

place.

BRAND & ADVERTISING

Airtel and Visual Identity

For a brand to be successful, it meet build enduring relationships with its different

audiences integral to this relationships is the visual image of the brand the consumer

carrier in his/her mind. The Airtel brand image is created through the consistent

application of a carefully developed visual identity, which helps AIRTEL distinguish

itself in a cluttered market. Airtels visual identity helps create instant brand recalland strength the relationships that its audience have with it.

The AIRTEL visual identity has different eliminate that work together to create a strong and

consistent identity of the band. The most important of these are:

o AIRTEL LOGO The AIRTEL logo is a strong, contemporary and confident symbol

for a brand that always ahead of the rest. It is specially drawn word mask.

o AIRTEL IMAGE STYLE It incorporate two solid, rectangular forms counter forms

creates an open doorway.

o AIRTEL TYPOGRAPHICAL STYLE The title case lettering with its capital A

was deliberately chosen to reinforce the brands leadership position. The red dot on the

letterform 1 was Airtels focus on innovation. The Express yourself are very much part

of the brand identity.


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o AIRTEL COLOR PALETTE The lettering is grey as that the pure black of Airtel is

visually unharmed CATEGORY ANALYSIS

PROMOTION

When Airtel commenced operations in 1995, the cellular market was pretty much in

its infancy. As a pioneer, Airtel had to take on the responsibility of creating and

building a new category. In its journey, Airtel evolved several innovative programmes to create awareness about the benefits of mobile technology. This not

only created the image of Airtel being a market leader, but also showcased the brand

as an innovator. It was a badge people were proud to wear - and flaunt.

The early advertising for Airtel focused on mobile phones as a key business and

lifestyle tool. The tag line 'Power to keep in Touch' used in the brand promise was

designed to make the user feel 'in controlpowerful' . As the category developed

with prices going down sharply, Airtel began talking to a wider spectrum of potential

users. This was the birth of the 'Touch tomorrow' positioning. Airtel started talking to

new segments by positively positioning and establishing itself as a brand that

improved the quality of life.

In its strategic drive to emotionally connect with the mass market, Airtel has also

used cricket, Bollywood and music as carriers. Through this exciting journey Airtel

has been personified as a leader - innovator, likened to Amitabh Bachchan, Sachin

Tendulkar and Shah Rukh Khan. Airtel has always stood out as a dynamic and a

caring brand. In this journey Airtel has created some highly acclaimed.

Campaigns like the Leadership campaign, the Quality Time campaign, Magic Dalo,

Say Hello launch campaign, the Magic Hai to Mumkin Hai campaign, the A.R.


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Rehman Live Every Moment campaign and the new Express Yourself campaign.

Much like a pied piper, the Airtel brand has attracted and retained the first customer

it acquired in 1995 to the six-millionth it acquired in 2003.

BRAND VALUE

Airtel impacts the lives of millions across India - it gives people the unlimited

freedom to communicate so that they can express themselves freely. Airtel's brand

values are centered around leadership, performance, trust, care, innovation and

sensitivity. These are reflected not just through advertising, but in fact through each

interface Airtel has with its customer.

BRAND POSITIONING

In late-2002, Bharti Cellular Ltd. (Bharti), India's largest cellular telephone company

released a television commercial (TVC), which despite using the 'oft-repeated'

celebrity endorsement route was unusual in terms of its celebrity selection. Instead of

using the usual movie stars/sports celebrities, it chose one of the country's most

successful music composers, A.R Rahman to promote its brand.

The company also decided to undertake a comprehensive brand-building program for

the company and chose the slogan 'Unlimited Freedom' for the same. Commenting

on these changes, company sources said, "Airtel's brand identity and campaign will

now have a new younger and international look and feel.

Bharti's massive media expenditure plans were no surprise, considering the fact that

it was the largest cellular telecom company in the country - reaching over 600

million people in 16 (out of 29) states of India.

PRODUCT MIX OF BHARTI AIRTEL


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1. PREPAID

2. POST PAID

3. VALUE ADDED SERVICES

4. BLACKBERRY

5. BROAD BAND

6. BUSINESS SOLUTIONS

7. DIGITAL TELEVISION ( DTH SERVICE )

PRODUCT LIFE CYCLE : At a growth stage .

BCG MATRIX:-

RELATIVE MARKET SHARE

LEASED

PRIVATE

CIRCUIT

ISP

CELLULAR SERVICE

BASIC TELEPHONE

(Fixed Line)

STARS QUESTIONMARKS

COWS DDDDDDOGS

HIGH

LOW

LOW

GROWTH %

HIGH


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BCG Matrix is used to find out the relative growth prospects of the product line.Within the Airtel product line leased, private, circuit are among star.

Airtel is going to have a submarine cable between Singapore and Chennai with the

collaboration of singtel. This wills airtel to maintain its position in IPLC market.

Right in India only VSNL have such cables.

SWOT Analysis of Bharti Airtel

SWOT analysis is a strategic planning tool used to evaluate an organization and its

environment. It includes the strength, weakness, opportunity and threats involved in a

business venture. It involves specifying the objective of the business venture or

project & identifying the internal & external factors that are favorable & unfavorable

to achieving the objective.

Strength Weakness Pan-India operation

Integrated telecom Player

Wide network coverage

Best Customer Service

Innovative Value Added Services

Robust distribution channel

Tariff at the higher side

No differentiated positioning in

the customer mindset

Opportunity Threat

Rural market yet to be tapped

Penetration of value added

services

Number of overall mobile users

are increasing rapidly

Entry of International Players like

Vodafone and AT&T

Competitors like Idea, Aircel etc.

are also making high inroads.


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ANSOFF MATRIX:-

MARKET

PENETRATION

ENTERED INBROADBAND AND FIXED

LINE MARKET

PRODUCTDEVELOPMENT

IPLC PRODUCTS

MARKETDEVELOPMENT

LOOKING FOR OVERSEASMARKET

DIVERSIFICATION

OUTSOURCING

To portray alternative corporate growth strategies, Igor Ansoff conceptualized a matrix that focused on the firms present and potential

products and markets / customers. He called the four product-market


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strategic alternatives

market penetration [existing market + existing product],market development [existing product + new market],

product development [existing market + new product], and Diversification [new product + new market].

The company should follow all four strategies depending on the demand and product as indicated in the matrix. The company perhaps needs to focusmore on the comparatively neglected area of diversification.

MARKET PENETRATION : Airtel entered in broadband and fixed phone line market.

PRODUCT DEVELOPMENT : IPLC productsMARKET DEVELOPMENT : Airtel is now looking for overseas

market. Company has already make his presence in Nigeria and SeychellesDIVERSIFICATION : Airtel has now outsourcing sum of its

services like customer services with IBM

PORTERS MODEL:-The industry structure has become relatively unfavorable compared to

earlier monopolistic times.


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Enterprises, said, "The eastern region of the country including Orissa has a

huge potential for improvement in mobile penetration, which in turn would

trigger an overall growth of the economy. The launch of Airtel in Orissa

would go a long way in establishing these objectives objectives and it is my

proud privilege to launch Airtel in this historic and culturally rich region of

the country."

Airtel has become the largest mobile service provider in Orissa

overtaking the subscriber base of its nearest competitor BSNL, which till

now was the market leader.

Airtel has overtaken BSNL in Orissa.It commands the highest market

share of 33% in the state.

Airtel has become the largest mobile service provider in Orissa,

overtaking the subscriber base of its nearest competitor, BSNL, which till

now was the market leader. There are about 584,000 Airtel subscribers in

Orissa, compared to 577,000 BSNL subscribers, as declared on July 31,

2006. Airtel has grown at a rate of 150 percent since it was launched in

Orissa in December 2004, according to K Srinivas, director of the East Hub

of Bharti Airtel. Airtel offers services in about 16,500 villages and 500

towns all over the state and has invested about $59.2 million to build the

network

OBJECTIVE:-

1. Correction of present distribution.

2. Adding OLS(Outlets) for Airtel Business.


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3. Improvement in LSO(Lapu Selling Outlet).

Airtel distribution channel:-

Distribution procedure and Margins:- Airtel directly supply its products to the distributors in UrbanAreas through Territory Manager. Territory Manager distributes the products as per demand for individual distributors, which is scheduled as per the target for the

territory.


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In urban areas the Margin for the Distributor is 1.3%. Distributor distributes the products to the FSEs. Their job is to

supply those products to the Retailers. The Retailers margin is 2.7% (2.5% margin on RCV Rs.10/- andfor all other RCVs the margin is 2.7%).

Stock system in distribution:-

The complete stock maintenance procedure is categorically divided intwo parts.

1. Stock to be Maintained by Distributor 2. Stock to be Maintained by Retailer In the case of Distributor:-The distributor has to keep the LAPU balance for minimum 7 days;

Here 35% of the value must be in RCV.In the case of Retailer:-The retailer has to keep LAPU balance for 3 days (minimum amount

Rs.1500); Here 33% of the value must be in RCV.(The FSE visits each Outlet in alternative days whether their is any

shortage of product or not. The supply system of Airtel is so strong thata Retailer will never go with shortage of product. It is also acompulsory task for each FSE to go and to ask Retailers whether thereis any shortage of product, once in every 2 days.)

SALES: (The way Airtel sales designed)


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Selection of sales force -They recruited separate department for sales and work of those

employee is to get or generate more and more revenue for organization .Training of Sales Force After Recruitment they are trained their employee for effective

working and in this training period they guided employee. How, when,where, what .and to whom we they can sale their product.Motivating of sales force If because of some reason any employee is not able to do their best

performance in that case rather than any action they use motivation as atool for increasing morale of that employee .Controlling of sales Force They also control the sales force because they know the importance of

control system in organization. They are using these entire four step for

decide their sales force and each step they are also Check they aredoing right things or not and if they thing changes are needed than theyrevised whole process again. Thats why we can see the difference

between Airtel sales growth and other challenger and follower.Sales Force Automation -A sale force automation solution (SFA) is a system that automatically

records all the stages in a sales process. This includes a contactmanagement system which tracks all contact that has been made with agiven customer, the purpose of the contact, and any follow up that

might be required.


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How it benefits Airtel sales team -For your business: your sales team can approach the market in an

organized and efficient manner. For your managers: now monitor the performance of your work force, solve potential problems and makeyour people more proactive. For your sales teams: now its easier toclose a deal by keeping a track of your orders, proposals and clients.

Products of Airtel

SIM (Security Identification Module):-

The base product of company, required for new subscriber. NowAirtel provides this sim with 64kb memory. The cost of sim to company is Rs 40/- with life time option. Thesim is provided to the company at free of cost which the retailer cansale at maximum Rs 100/- .LAPU: -

A SIM is provided to retailers from the company at free of cost for providing easy recharge service. Only regular retailers have this

facility. This SIM has a memory of 128kb and specially designed for easy recharge purpose. A retailer has minimum 5 easy rechargecustomers per month, failuring this target the SIM will beautomatically deactivated. This SIM has also Rs 300 talk time freeAirtel to Airtel. PRIMARY (The products those are supplied to the distributor from the company is said to be Primary) SECONDARY(The products supplied to the Retailers from theDistributors through FSEs said to be Secondary)

TERTIARY(Here the Retailer sold the products to thecustomers) Recharge voucher: In Every 1000 rupees of easy recharge the retailer must have tokeep 33% of paper vouchers where the distributor has to keep 35%. Recharge vouchers are available at different costs from Rs 10/-on words and easy recharges are available from Rs 30/- on words. Paper voucher is maximum available up to Rs 120/- where easyrecharge is available up to RS 10,000/-.


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Airtel in Bhubaneswar Market:-

Name of thedistributer

No of FSE

Max Time 5Das Services 3

SIM activation procedure :-

SIM is provided by the company to the distributor and thedistributors supplies the sim as per individual Retailers demand. The sim initially is not activated, after

any subscriber bought this sim then the retailer uses a special procedure through its LAPU sim to activate that sim. But during recentscenario maximum retailers are supplying activated sims to the

retailers that the new subscriber can easily use the new sim without anydelay in the service.

To activate the sim following procedure is followed:-

Step1: The retailer sends a sms through the LAPU.

Step 2: This sms reaches to 59109 (technical section) and then 3 newsms comes in return one to Retailer, next one to FSE and the last oneto the Distributor.

Step 3: Then the distributor send a new sms. After this the new simwill be activated and will be ready to use. As now a day in the Bhubaneswar market the distributors are

providing retailers activated Sims. If any new person will subscribe theto a new connection the retailer provides him the way to activate thesim. The new subscriber can only get this sim after paying the cost of sim, providing necessary and original documents required and after getting the confidence of the retailer that the provided documents are


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valid. After the new subscriber bought the sim, 1st that person has toinsert the sim in the mobile phone and then has to call 123, (Airtel

customer service number (toll free)). Then the sim will beautomatically activated and will be ready to use.

METHODOLOGIES:-Data is collected from both the Primary sources i.e. questionnaire and

also from Secondary sources.

1.Primary sources:The primary source of data collection is through questionnaire. The

questionnaires are distributed among retailers and their view isrecorded and used in analyzing the data

2.Secondary sources :

The secondary sources includes online sites, newspapers andtemplates from AIRTEL distribution points.

FINDINGS:-

People are not ready to change their service providerbecause of their long term investment.


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Customers are highly satisfied regarding the broadnetfacility of airtel.

Customers had certain queries regarding distinguishedfeatures of different plans, what they actually wanted was anexecutive visit to brief them more about the plans.

It was observed that most of the customers expressedtheir unhappiness over billing services of their respectiveservice provider.

Through my survey I came to know that most of thecustomers are satisfied with Airtels plans.

Most of the customers likes Airtel advertisement andalso recall that easily when asked.

Total Mind Assessment for Airtel is quite high ascompared to other competitors.

Competitors selling strategy becoming a biggestproblem for sells maximization.

High tariff cost also matters for sales maximization.

Retailer benefit schemes as they achieve the target canpush more subscribers and maximize sales.

Some retailers bringing vouchers and easy from ruralarea and get more margins comparatively to urban areas.

Retailers are unhappy with Airtels advertisement offersbecause the company not providing the GSB in time, whereothers (new operators) are doing it. So, the other operators arecapable of pushing their sales.


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the competition and strengthen its customerrelationship.

Airtel should sign more celebrities fromcricket and bollywood .

Company need to improve Broadband service because most of the customers facing problems likeslow speed, connectivity, etc.

Flexible pricing model will enable Airtel toavoid major increases in capital expenditures.

Company should target new customers and try to bind the old customers.

Company should establish widespreaddistribution points to make the product visible andavailable at every locations.

Large part of Indian rural market is stilluntapped, Company should give attention towardsthis.

Top level Management should visit the outletsat least once in a period of 3 months.

CONCLUSION

India has a mere 1.2 telephones for every 100 of its people. This is

way belong International standards is not becoming of a country

aspiring to be major player in the global economy of the 21 st century.

This means that opportunities for investment in this sector are

immense. Basic voice service is the biggest market. Installation of


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around 35 million direct lines by the year 2002 will require an

investment of US$32 billion.

Due to the growing need for mobile phones. Its no wonder that

service providers are going all out to capture, as much market space as

they can. As the no of mobile phone users are estimated to raise about

280 million by 2010. Its not surprising that most of the leading service

providers in India have started branding and marketing their services

more aggressively.Airtel has proved to be the leading Telecom giant in India and is

focusing on bigger market share by providing good services to its

customers. In this project I had tried my best efforts to analyze the

marketing plans of Airtel and how they satisfy their customers needs.

Bibliography

WEBSITES:1. www.bharti.com

2. www.airtelworld.com

3. www.trai.gov.in

4. www.wikipedia.org

5. www.howstuffworks.com

6. www.indiatelecomnews.com
http://www.bharti.com/http://www.airtelworld.com/http://www.trai.gov.in/http://www.wikipedia.org/http://www.howstuffworks.com/http://www.indiatelecomnews.com/http://www.bharti.com/http://www.airtelworld.com/http://www.trai.gov.in/http://www.wikipedia.org/http://www.howstuffworks.com/http://www.indiatelecomnews.com/


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7. www.voicendata.com

8. www.indiabroadband.net

9. www.thehindubusinessline.com

BOOKS:

1. Marketing Management, Dr. S. L. Varshney and Dr. R.L.

Gupta, 3rd Edition.

2. Marketing Management, Philip Kotler and Kevin Lane

Keller.

3. Levin R I Rubin D S(2008), Statitics for Managers.

Certificate This is certifying that Mr. Diptish Prasad Pradhan is astudent of our college & studying in M.B.A. As a part of university program he has undergone a project work on.

PERFORMANCE VARIANCES REDUCTION IN

DISTRIBUTION IN BHUBANESWAR on Bharti Airtel
http://www.voicendata.com/http://www.indiabroadband.net/http://www.thehindubusinessline.com/http://www.voicendata.com/http://www.indiabroadband.net/http://www.thehindubusinessline.com/


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A

PROJECT REPORT ON

MARKETING

OF

Submitted in the Partial Fulfillmen t in

MASTER OF BUSINESSADMINISTRATION KIIT School of Management, KIIT UNIVERSITY, Bhubaneswar

Submitted By: Project Guide:

Diptish Prasad Pradhan Mr.George Benzamin Ekka(ZSM)


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