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Finance Sector Of Bharti Airtel

GURU GOVIND SINGH INDRAPRAST UNIVERSITY

(SESSION 2009-2012)

SUBMITTED TO:- SUBMITTED BY:-

Miss. Sakshi Anand Maneesh Sharma

Lecturer of BBA Department. Enrol no:07712401809


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Guide certificate


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Student certificate


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INDEX

Sr.no TOPICS Pg.no

ACKNOWLEDGEMENT

INDEX

1. Company Profile

BHARTI AIRTEL1-5

2. INTRODUCTION

Location (8) Organizational Structure(9) Distribution Channels(10)

Market Competitors(11) Strategies(12-14) Share(15) Memorandum of Association(16) SWOT (17-18)

6-18

3. Financial Accounts of Airtel

Cash Flow Statement(20) Profit &Loss Accounts of Airtel(21) Balance Sheet of Airtel(22)

19-22

4. Objective 23

5. Research Objective 25-28

6. Research Methodology 29-31

7. Research Analysis &Findings 32-37

8. Limitation 38-39

9. Conclusion 40-41

10. Bibliography 42-43

11. Annexure 44-47


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INTRODUCTION

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INTRODUCTION

We are one of Indias leading providers of telecommunication services with a nationwide

presence in all the 23 licensed jurisdictions (also known as Telecom Circles). We served an

aggregate of 88,270,194 customers as of December 31, 2008; of who 85,650,733 subscribe to

our GSM services and 2,619,461 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 December 31, 2008. 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. 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.

Successful businesses have extensive knowledge about their customers and competitors.

Getting accurate and specific information about your customers and competitors is a critical firststep in market investigation and development of a marketing plan. Accurate market assessment

and development of an effective plan is critical to the success of both new and existing

businesses. The market impacts and directs all aspects of the company's activities and ultimately

will lead to success or failure of the business.

In developing a market plan, your primary functions are to understand the needs and desires of

your customer select or develop a product or service that will meet customer needs, develop

promotional material that will make the customer aware, and ensure product or service delivery.

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Location

Location Type Address

Registered & Corporate Office Qutab Ambience H-5/12 Mehrauli Road

New Delhi11, Delhi - India

Phone : 41666000, Fax : 41666011/ 12

Email:[email protected]

Registered Office Qutab Ambience H-5/12 Mehrauli Road

New Delhi110030, Delhi - India

Phone: 41666000. Fax: 41666011/ 12

Email:[email protected]

Registered Office Aravali Crescent, 1, Nelson Mandela Road,

Vasant Kunj, Phase 2, New Delhi - 110070

DelhiIndia

Phone : 41666111, Fax : 41666137, 41666146

Email :[email protected]

Registered & Corporate Office Aravali Crescent, 1, Nelson Mandela Road,

Vasant Kunj, Phase 2, New Delhi - 110070

Delhi - India

Phone : 46666100, Fax : 46666137

Email :[email protected]

Registered & Corporate Office Bharti Cresent, 1, Nelson Mandela Road,

Vasant Kunj, Phase New Delhi - 110070

Phone : 46666100, Fax : 46666137, 41666149

Email : compliance.officer@bharti

8
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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ORGANIZATIONAL STRUCTURE

Organization means it is a group of people working together co-operatively under authority

towards achieving goals and objectives that mutually benefits the organization. It may also be

said as grouping activities is to be performed. We can also define as establishing relationship for

the purpose of handling people to work effectively by maintaining horizontal and vertical

coordination.

Market is related with creation of standard of living. Organization is a form of co-

operative efforts. It can be said that marketing organization consists of no. of people with many

different position.

Take all the things away from me, take my wealth, take my industries, take my land,

but with help of my efficient organization I will bring these all back within only 5 years.

Andrew Carnegie

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DISTRIBUTION CHANNEL

Company

Distributor

Dealer

Salesmen

Retailer

Customer

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Market Competitors

Major Players:

BSNL - Incumbent service provider and World's 7th largest Telecommunications

Company providing comprehensive range of telecom services in India Services include Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier

service, MPLS-VPN, VSAT, VoIP services, IN Services etc.

Subscribers :BSNL---------------------------- 42673357 ---------------------15.95%

MTNL - State owned operator covering the cities of Mumbai and Delhi. Provides both fixed

and mobile services.

Bharti Airtel - Integrated operator with presence in all segments.

Leads the mobile segment in the country. Subscribers :Bharti Airtel-------------------88382758--------------------- 33.04%

Reliance Communications - Largest player in India in the CDMA segment

Launched a GSM network.

Subscribers :Reliance Telecom--------------10353841--------------------- 3.87%

Tata Teleservices - Integrated operator (with VSNL) with presence in all segments

Provides CDMA services in 20 circles.

Subscribers :Tata---------------- 63340024 ----------------------23.68%

11
http://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/BSNL


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STARTIGIES

Bharti has spent a considerable amount on advertising its mobile phone service, Airtel. Besides

print advertising, the company had put up large no of hoardings and kiosks in and around Delhi.

The objective behind designing a promotion campaign for the Airtel services is to promote the

brand awareness and to build brand preferences.

It is trying to set up a thematic campaign to build stronger brand equity for Airtel. Since the

cellular phone category itself is too restricted, also the fact that a Cellular phone is a high

involvement product, price doesn't qualify as an effective differentiator. The image of the service

provider counts a great deal. Given the Cell phone category, it is the network efficiency and the

quality of service that becomes important. What now the buyer is looking at is to get the

optimum price-performance package. This also serves as an effective differentiator

Brand awareness is spread through the' campaigns and brand preference through brand stature.

Airtel's campaign in the capital began with a series of 'teaser' hoardings across the city,' bearing

just the company's name and without explaining what Airtel was. In the next phase the campaign

associated Airtel with Cellular only thereafter was the Bharti Cellular connectionbrought up.

Vans with Airtel logos roamed the city, handing out brochures about the company and its

services to all consumers. About 50,000 direct callers were sent out. When the name was well

entrenched in the Delhiitess mind, the Airtel campaign began to focus on the utility of

Cellphone. In the first four months alone Airtel's advertisement spend exceeded Rs. 4 crores.

As of today the awareness level is 60% unaided. This implies that if potential or knowledgeable

consumers are asked to name a Cellular phone service provider that is on the top of his/her

mind 60% of them would name Airtel. As for aided it -is 100% (by giving clues and hints etc.).

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Brand strength of a product or the health of a brand is measured by the percentage score of the

brand on the above aided and the unaided tests. The figures show that Airtel is a healthy and a

thriving brand.

Every company has a goal, which might comprise a sales target and a game plan with due regard

to Its competitor. Airtels campaign strategy is designed keeping in mind its marketing strategy.

The tone, tenor and the stance of the visual ads are designed to convey the image of a market

leader in terms of its market share. It tries to portray the image of being a "first mover every

time" and that of a "market leader".

The status of the product in terms of its life cycle has just reached the maturity stage in India. It

is still on the rising part of the product life cycle curve in the maturity stage.

The diagram on the left hand side shows the percentage of the users classified into heavy,

medium and low categories. The right hand side shows the revenue share earned from the three

types of users.

Airtel, keeping in mind the importance of the customer retention, values its heavy users the most

and constantly indulges in service innovation. But, since heavy users comprise only 15 - 20% of

the population the other segment cannot be neglected.

The population which has just realised the importance of cellular phones has to be roped in. It is

for this reason that the service provider offers a plethora of incentives and discounts. Concerts

like the "Freedom concert" are being organised by Airtel in order to promote sales. The media

channel is chosen with economy in mind. The target segment is not very concrete but, there is an

attempt to focus on those who can afford. The print advertisements and hoarding are placed

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in those strategic areas which most likely to catch the attention of those who need a

cellular phone. The product promise (which might cost different

1 higher) is an important variable in determining the target audience.

Besides this, other promotional strategies that Airtel has adopted

are .

(i) People who have booked Airtel services have been treated to exclusive premiers

of blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus

miles on the German airlines frequent flier's programs.

(ii) There have been educational campaigns, image campaigns, pre-launch

advertisements, launch advertisements, congratulatory advertisements,

promotional advertise-ments, attacking advertisements and tactical

advertisements.

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SHARES

The equity shares of Bharti Airtel are currently listed on National Stock Exchange of

India Limited (NSE) and The Stock Exchange, Mumbai, (BSE). Bharti Airtel offered

185,336,700 equity shares in the initial public offering (IPO) and raised Rs 8,340.15 million

through this process. The shares were over subscribed 2.56 times.

With this IPO, Bharti Airtel established certain important landmarks in the history of the Indian

capital market. Together with being the first 100% book building process that this country has

seen, the listing was completed within a record time of ten working days. of the close of the

issue. Moreover the process of allotment and issue of shares was also completed within one day

of the last day of pay-in.

The book running lead managers for the IPO were JM Morgan Stanley and DSP Merrill Lynch

and the registrars to the issue was Karvy Consultants Limited.

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Memorandum of Association

Merger/Demerger Orders

Order under section 391(2) and 394 of the Companies Act, 1956 regardingamalgamation of Viscount Holdings Limited, Jubliant Holdings Limited, Jumbo

Holdings Limited with Bharti Tele-ventures Limited forming part of the Memorandum

of Association of the Company.

Order under section 391(2) and 394 of the Companies Act, 1956 regardingamalgamation of Bharti Cellular Limited, Bharti Infotel Limited with Bharti Tele-

ventures Limited forming part of the Memorandum of Association of the Company.

Order under section 391and 394 of the Companies Act, 1956 regarding amalgamationof Satcom Broadband Equipment Limited, Bharti Broadband Limited with Bharti AirtelLimited forming part of the Memorandum of Association of the Company.

Order under section 391and 394 of the Companies Act, 1956 regarding scheme ofarrangement between Bharti Airtel Limited and Bharti Infratel Limited forming part of

the Memorandum of Association of the company.

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http://www.airtel.in/wps/wcm/connect/57d4128049c2af03a600b7c30aab7fec/Corporate_Governance_memorandumofassociation_Cellular__Infotel_-_BTVL_Amalgamation_Order.pdf?MOD=AJPEREShttp://www.airtel.in/wps/wcm/connect/57d4128049c2af03a600b7c30aab7fec/Corporate_Governance_memorandumofassociation_Cellular__Infotel_-_BTVL_Amalgamation_Order.pdf?MOD=AJPEREShttp://www.airtel.in/wps/wcm/connect/57d4128049c2af03a600b7c30aab7fec/Corporate_Governance_memorandumofassociation_Cellular__Infotel_-_BTVL_Amalgamation_Order.pdf?MOD=AJPERES


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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 ha s a c le ar an d w el l -defined or ga ni za t i on s t ru ct ur e a nd l imits of f inancial

authority. Increase in advertisement spends affect the companys margins.

The comp any s botto m lin e fall s vict im to the bl oated an d 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.

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Opportunities:

The c o m p a n y s f i na nc i a l pe r f o rm an ce ca n rec e i ve a maj or 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 d ifficul t to maintain historical growth rates in such a

depressed scenario.Companys major raw materials are influenced by government

policies /controls as well asvagaries of the monsoons . Fluctuations in the prices of raw

materials would have significant impact on costs and margins of the company.

Moreover, inordinate hike in Broad Band Internet products would also increases

companys production and distribution cost.

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CASH FLOW STATEMENT OF AIRTEL

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Profit &Loss Accounts Of Airtel

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BALANCE SHEET OF AIRTEL

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RESERCH OBJECTIVE

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Research Objectives:

To study the consumer trends in telecommunication sector.

To study consumer decision-making & preferences.

To study marketing strategies adopted by Airtel.

To study the level of customer satisfaction in Airtel.

To study the market potential.

To study customer purchase decision behaviour.

To understand the needs of different consumer segments.

Comparative study of different mobile companies.

Research Approach

The research approach for the purpose was secondary research to collect the information

on the subject.

Research Instrument

I used direct observation, customer data & survey as research instrument.

Sources of Data:

Research Data

Data is the key activity of marketing research. The design of the data collecting method is

backbone of research design.

Data constitute the foundation of statistical analysis and interpretation. Hence the first step in

statistical work is to obtain data.

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Data can be obtained from two important sources, namely:

Primary Data

Secondary Data

Primary Data:

Primary data are gathered for the specific purpose or for a specific research project,

consist of original information for the fulfillment of project objective.

When the data are required for the particular study can be found neither in the internal record of

the enterprises nor in published sources. In some cases it may become necessary to collect

original data.

Primary data can be collected in four ways:-

Observation

Focus

Survey

Experiment

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Secondary data:

Secondary data are the data, which already exists somewhere. Secondary data provide starting point for

research and after that the advantage of low cost and ready availability. Secondary data can be divided

into two types:

Internal data

External data

When researcher uses the data that has already been collected by other data are

called secondary data. Secondary data can be obtained from journals i.e. internal

sources report, government publication and books, professional bodies etc.

Internal or External Data

Internal data are reports and memos generated within an organization to facilitate its operations.

External data are those specially produce for outside consumption.

Sources from which I have taken the secondary data are as under:

Direct observation

Airtel website

Books for marketing management

Surveys and customer data & report

KNOPs

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Research Analysis & suggestion

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Analysis and suggestion

Are you like to see advertisement?

Analysis

From the above mentioned graph we can analyze that out of 50 Person which I have gone through, all of

them are watching the advertisement and 50 out of them 46 are watching the advertisement and only 4

people are not like to watching advertisement.

Suggestion

I would not like to do any suggestion because most of the people are watching advertisement of Airtel.

0

5

10

15

20

25

30

35

40

45

50

Yes No

No.ofperson

Series1

Yes 46

No 4

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Have you seen the advertisement of Airtel?

Analysis

From the above mentioned graph we can analyze that out of 50 Person which I have gone through, all of

them are watching the advertisement of Airtel and 50 out of them 45 are watching the advertisement of

Airtel and only 5 people are not aware about the Airtel advertisement.

Suggestion

I would not like to do any suggestion because most of the people are watching the Airtel

advertisement.

0

5

10

15

20

25

30

35

40

45

50

Yes No

No.o

fpeople

Series1

Yes 45

No 5

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In advertisements which factor are very attractive? (Rank them)

Analysis

From the above mentioned graph we can analyze that out of 50 Person which I have gone

through, all of them are watching the advertisement of Airtel and 50 out of them 12 are saying that Theam

is important factors, 10 are saying color combination, 3 are saying brand ambassador 24 are saying

Massage.

Suggestion

I would like to suggest to the company that they can Focuses more and more in their

advertisement massage and theam because more people are concern with the massage in compare to

other.

Importent Factores

Theam

Color combination

Brand ambassador

Massage

Other Factoers

Theam 12

Color

combination 10

Brand

ambassador 3

Massage 24

Other Factors 1

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Do you get all information through advertisement of Airtel?

Analysis

From the above mentioned graph we can analyze that out of 50 Person which I have gone

through, all of them are watching the advertisement of Airtel and 50 out of them 24 are saying that they

get all information through Airtel and 26 are say that they are not getting all information through

advertisement of Airtel.

Suggestion

I would like to suggest to the company that they can show the maximum information in

their advertisement.

Yes 24

No 26

23

23.5

24

24.5

25

25.5

26

26.5

Yes No

No.

ofPerson

Series1

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In your opinion through which media company can get maximum reward?

Analysis

From the above mentioned graph we can analyze that out of 50 Person which I have went

through, all of them are watching the advertisement of Airtel and 50 out of them 15 are saying that

company can get maximum reward throw newapaper,8 are saying throw hording,10 are saying throw

Telivision,22 are saying throw Retailer shop.

Suggestion

I would not like to suggestion to company that people can maximum reward throw the retailer

shop so they can give their advertisement in there retailers.

Newspaper 15

Hording 8

Television 10

Retailer shop 22

Other sources 5

0

5

10

15

20

25

News

pape

r

Hording

Telev

ision

Retaile

rsho

p

Othe

rsou

rces

No

ofper

son

Series1

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Limitation

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LIMITATIONS

In this project, I have tried to present facts with figures penetrating to my survey skill it has some

limitation, which are there in this project need identification.

The sample survey is done on a very small number of people thus the results drawn may

be different from the opinion of the universe.

The time of two months is very less for covering all the aspects of the project.

The feedback received from the individuals is according to his perception, limited

exposure and personal knowledge level.

Very less time was there for interacting with corporate clients.

Problem in meeting with the concern person without appointment.

The last but not the least is that the database which I gathered from the websites is not so

reliable because many times I face a difficulty to find the address of the companies and

sometimes the companies change the address and not upgrade in the websites due to

which I waste my time as well as money also.

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Conclusion

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CONCLUSION

From above the details I conclude that 70% Airtel users preferred to remain with

Airtel. Also good no. of users who were willing to switch from their respective

subscribers showed interest in Airtel. Hence, these statistics imply a bright future

for the company. Also the company is now providing more services like the door

to door services which is you dial the Airtel customer care and would like to send

someone flowers the Airtel company delivers those flowers to the person

concerned. Also Airtel is providing free text messaging service and free voice mail

service. Call conferencing is also another feature Airtel provides.

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BIBLIOGRAPHY

BOOKS

KOTLER PHILIPS, MARKETING MANAGEMENT, PUBLISHED BY PRENTICE

HALL OF INDIA PVT.LTD.

AAKER KUMAR DAY, MARKETING RESEARCH MAGAZINES

BUSINESS INDIA

BUSINESS WORLD

WEBSITES:

HTTP://WWW.COAI.COM

HTTP://WWW.TRAI.COM

HTTP://ECONOMICSTIME.COM

HTTP://KHOJ.COM

HTTP:)//EN.WIKIPEDIA.ORG/WIKI/BHARTI AIRTEL#TELICOMIDIA

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http://www.coai.com/http://www.trai.com/http://www.trai.com/http://www.coai.com/


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Annexure

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QUESTIONNAIRE

I Maneesh Sharma a Second year student of GGSIPU, Delhi presently pursuing BBA (B&I) . I

have prepared the following questionnaire for the completion of my summer project. I promise

that all the answer provided by you wont be made public. This questionnaire is purely for

educational purpose.

BHARTI AIRTEL, DELHI REGION

Name: __________________________________________________________________

Age: ________

Occupation _____________________________________

Address: ________________________________________________________________

Phone No. _________________________________________________________________

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QUESTIONNAIRE

QUS (1)Do you have any mobile connection?

QUS (2) Which age group you belong to?

(a)15-20

(b)20-25

(c)25-35

(d)35- above

QUS (3) What occupation do you have?

(a)Business

(b)Professional

(c)Government Employee

(d)Student

QUS (4) Do you know how many telecommunication companies exist in Lucknow region?

(a)6

(b)5

(c)4

(d)Not confirm

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QUS (5) If you have to purchase mobile phone connection which company you will prefer and

why?

(a)Airtel

(b)Reliance

(c)TATA indicom

(d)Vodafone

QUS (6) How you came to know the scheme/service that you use?

(a) Advertisements (b) Word of Mouth

(c) Internet (d) Promotional activity

QUS (7) You would like to take Prepaid connection or Postpaid connection?

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