Shashank Thesis 2

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Indian Institute Of Planning And Management

THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

LUCKNOW

THESIS ON

Analysis Of Consumer Behavior on Bharti Airtel

SUBMITTED TO:

PROF. TARUN GANGWAR

UNDER THE GUIDANCE OF:

MR. ABHINAV GARG

SUBMITTED BY:

SHASHANK TANDON

ALUMNI ID NUMBER: LCK/FW-09-11/M003

BATCH: PGP/FW/2009-11

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SUBJECT


Prepared By-

SHASHANK TANDON

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Approval letter from External guide

Note: Forwarded message attached

-- Original Message --

From: [email protected]

To : [email protected]

Subject: Thesis

TO WHOM SO EVER IT MAY CONCERN

This is to confirm that Ms. SHASHANK TANDON,student of IIPM,

Lucknow, is doing a live Project (Thesis) on the topic Analysis Of

Consumer Behavior on Bharti Airtel under my guidanceand that the work being done by the candidate is Original and is of the

standard expected from an MBA student.

Warm regards

Mr. ABHINAV GARG

DGM- Head B2B

Airtel

Lucknow UPU

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TOPIC APPROVAL LETTER SENT OVER MAIL

From:devsheel gaurav

To: [email protected]

Sent: Saturday, March 17, 2012 3:45 PM

Subject: Thesis Approval

Thesis Topic Approval

Dear SHASHANK TANDON,

This is to inform that your thesis proposal on Analysis Of Consumer Behavior onBharti Airtel, to be conducted under the guidance of Anuj Sanghi is hereby approvedand the topic registration id number is LCK/FW-09-11/M003

Make it a comprehensive thesis by ensuring that all the objectives as stated by you inyour synopsis are met using appropriate research design; a thesis should aim at adding

value to the existing knowledge base.

You are required to correspond with your internal guide Dr. Tarun Gangwar at

[email protected], Ph.-9450447018 marking a copy to

[email protected] by sending at least six response sheets at regular intervals

before the last date 15th May 2012 for thesis submission.

NB:

1) A thesis would be rejected if there is any variation in the topic/title from the oneapproved and registered with us.

2) The candidate needs to handwrite at least 1200 to 1500 words on the

summary of thesis at the time of viva.Regards,

Devsheel Gaurav

Program Manager

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IIPM Lucknow

APPROVED THESIS SYNOPSIS

Name:SHASHANK TANDONBatch:PGP/FW/2009-11

Phone Number:7388021111

Email [email protected]

Specialization:

Marketing

Topic:


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Acknowledgement

It is well-established fact that behind every achievement lays an

unfathomable sea of gratitude to those who have extended their support

and without whom the project would never have come into existence.

I express my gratitude to IIPM, Lucknow for providing me an

opportunity to work on this thesis as a part of the curriculum.

Also, I express my gratitude to Prof. Tarun Gangwar on the

completion of my project.

Declaration

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I, Shashank Tandon hereby declare that the project on

Analysis Of Consumer Behavior on Bharti Airtelin Lucknow,iswritten by me under the guidance of Mr. ABHINAV GARG

(DGM- Head B2B Bharti Airtel Ltd.)

l The empirical conclusion & findings in the project are based on the

data collected by me and the entire project work is not are production ofany other sources.

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Table of Contents11.Introduction

10 - 17

1.1 Explanation about the Topic in brief (i.e. Consumer Behavior)

1.2 Reasons for selecting the Topic

1.3 Importance of the Topic to the company

12.Organization Profile

18 42

2.1Company Introduction

2.1.1 Industry profile

2.1.2 Company profile

2.1.3 Management Team

13.Research objectives and Scope of Research project

43 - 48

3.1 Problem definition

3.2 Objectives of the Research project

3.3 Product Scope

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14.Research Methodology

49 - 58

4.1Research Design

4.2Hypothesis

4.3Sampling Plan

4.4Sample size determination

4.5Data collection Instrument

4.6Research Limitations

5. Analysis, Interpretation and Presentation

59 - 77

5.1Method to be adopted

5.2Analysis of Question

5.3Interpretation

6. Conclusion and Suggestions

78 - 81

l7.Annexure

82 - 83

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l8.Details of Customers

84 - 87

l9.Bibliography 88

Introduction

1.1 The Topic

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Consumer Behavior is the study of how individuals, groups and

organization select, buy, use and dispose of goods, services ideas or

experience to satisfy their needs and wants.

By Philip Kotler.

Marketer must fully understand both the theory and reality of Consumer

Behavior. A consumer? buying behavior is influenced by cultural, social

and personal factors. Cultural factors exert the broadest and deepest

influence.

Chapter-1

1. Cultural Factors

Culture, subculture and social class are particularly important

influences on consumer buying behavior. Culture is the

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In addition to cultural factors, social factors such as reference

groups, family, and social roles and statuses affect the

process of buying behavior.

a) Reference Groups:

A person? reference groups are all the groups that have a

direct (face-to-face) or indirect influence on their attitudes or

behavior.

Groups having a direct influence are called membership

groups. Some of these are primary groups with whom the

person interact fairly continuously and informally, such as

family, friends,neighbors, and coworkers.

b) Family:

The family is the most important consumer buying

organization in society, and family members constitute the

most influential primary reference group. We can distinguish

between two families in the buyer? life. The family of

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orientation consists of parents and siblings. From parents a

person acquires an orientation toward religion, politics, and

economics and a sense of personal ambition, self-worth and

love.

c) Role and Status:

A person participates in many groups family, clubs and

organizations. Groups often are an important source of

information and help to define norms for behavior. We can

define a person? position in each group to which he belongs

in terms of role and status. A role consists of the activities a

person is expected to perform. Each role carries a status. A

senior vice president of marketing has more status than a

sales manager, and a sales manager has more status than an

office clerk.

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3. Personal Factors

A buyer? decisions are also influenced by personal

characteristics. These include the buyer? age and stage in

the life cycle; occupation and economical circumstances;

personality and self-concept; and lifestyle and vales. Because

many of the characteristics have a very direct impact on

consumer behavior, it is important for markets to follow them

closely.

a) Age and stage in the life cycle

b) Occupation and economic circumstances

c) Personality and self-concept

d) Lifestyle and values

Key Psychological processes

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The starting point for understanding consumer behavior is

the stimulus response model. Marketing and environmental

stimuli enter the consumer? consciousness, and a set of

psychological processes combine with certain consumer

characteristics to result in decision processes and purchase

and decisions. The marketer? task is to understand what

happens in the consumer? consciousness between the arrival

of the outside marketing stimuli and the ultimate purchase

decisions. Four key psychological processes-

1. Motivation

2. Perception

3. Learning

4. Memory

1Reason for selecting the Topic

Customer is a king of Market.

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1Importance of the Topic to the company

There are mainly two important Assets for any marketing

company, i.e. customers and clients. Such companies need to

understand the customer? behavior toward the brand they

are marketing for. Such a Bharti Airtel Group also

understands the same and hence study of Consumer

Behavior is very much important for the company.

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Organization? Profile

Chapter 2.1 INTRODUCTIONS

Increasing competition is forcing business to pay much more

attention to satisfying customers. Customer satisfaction, a

business term, is a measure of how products and services

supplied by a company meet or surpass customer

expectations. It is seen as a key performance indicator

within business and is part of the four perspective of a

balanced scorecard. In a competitive market place where

business competes for customers, customer? satisfaction is

seen as a key differentiator and increasingly has become a

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key element of business strategies. The reason an

organization is interested in satisfaction of its customers is

because customers purchase the organization? products.

The organization is interested in retaining its existing

customers and increasing the number of its customers.

Customer satisfaction is an ambiguous and abstract concept

and the actual manifest of the state of satisfaction will vary

from person to person and from product to product. The

state of satisfaction depends on the number of both

psychological and physical variables which correlate with

satisfaction behaviors such as returns and recommend rate.

The level of satisfaction can also vary. Depending on other

options the customer may have and other services against

which the customer can compare the organization? services.

Because satisfaction is basically a psychological state, care

should be taken in the effort of quantitative measurement,

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although a large quantity of research in this area has

recently been developed. Work done by Berry, Border

between 1990 and 1998 defined ten ?uality Valueswhich

influence satisfaction behavior, further expanded by Berry

in 2002 and known as the ten domains of satisfaction.

These ten domains of satisfaction include: Quality, Value,

Timeliness, Efficiency, Ease of Access, Environment, Inter-

departmental Teamwork, Front line Service Behaviors,

Commitment to the Customer and Innovation. These factors

are emphasized for continuous improvement and

organizational change measurement and are most often

utilized to develop the architecture for satisfaction

measurement as an integrated model. Work done by

Parasuraman, Zeithaml and Berry between 1985 and 1988

provides the basis for the measurement of customer

satisfaction with a service by using the gap between the

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level, the more likely the customer is to stop buying from

the firm. Customer Satisfaction may be measured directly

by survey and expressed as a percentage, such as Percent

of Customers Completely Satisfied. We have conducted a

survey and measure the level of customer satisfaction

among the mobile users of Up-west circle.

Chapter 2.1.1 INDUSTRY PROFILE

INTRODUCTION TO TELECOM SECTOR HISTORY

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The first telegraph line in India was commissioned In October

1881 for the East India Company.That was the beginning of

India's Electronice contact with the World.Hundred year's

later,the first automat-ic teliphone exchange opened in

Calcutta.From than to 1995, when the first the cellular phone

call was made at the princely cost of ruppes16.80/ PER

MIN.For the average indian getting the teliphone connection

having contact at the right place or a wait that could take

years. Not any more. With the mobile subscriber base rising

By about 1.5 millionevery month,India is the fastest growing

mobile market today.Of cource,what is playing out in India is

just one exciting chapter in the global wirless revolution-a

revolution that has ensured that mobile phone's are the

most widespread communication devises on Earth. There are

1.3 billion mobile subscribers around the global today, and

this number is expected to rise to 2 billion by 2007.By the

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year, India is expected to have 207 million mobile

subscribers- or just over 10% of the total subscribers base.

And it will probably also have the lowest rates for the cellular

telephone any where in the world. In the space of a decade,

the Indian telecomm sector has moved from the boodocks to

became a global growth story on steroids.This year is

expected to be the seminal year in the countries

telecommunication history. By September 2000 the number

of cellular connection is expected to over take the 42.5

million fixed line connection's, Say's international research

firm garter. Some analysts advise taking a slightly more

conservative figure. They point out there is some degree of

over-contenting by cellular service Operators in the mad rush

to report ever higher subscriber numbers. Since chum rates -

the rate at which subscribers move out of one system to

another every month-very between 3.6% and 6% in the

different cellular circles of India, the possibility of doublePGP/FW/08-11 LCK/FW/08-11/M0031


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Bharti AXA Investment Managers Pvt. Ltd., an asset

management company in India, is a joint venture between

Bharti Enterprises, AXA Investment Managers (AXA IM) andAXA Asia Pacific Holdings (AXA APH).

Centum Learning Limited:-

Centum Learning Limited provides end-to-end learning and

skill-building solutions to several large corporates. It provides

solutions that impact business performance through

enhanced employee productivity, customer profitability and

effective talent transformation.

Jersey Airtel Ltd:-

Jersey Airtel, a subsidiary of Bharti, offers world-class mobile

services in Jersey (Channel Islands) over its full 2G, 3G and

HSDPA enhanced network. The Company brings market-

leading products and services to its customers under Airtel-

Vodafone brand.

Bharti Foundation:-

Bharti Foundation was set up in 2000, with the vision, ?o help

underprivileged children and young people of our country

realize their potential It aims to create and support programs

that bring about sustainable changes through education and

the use of technology and information.

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Bharti Realty:-

Bharti Realty Limited is a young, vibrant and dynamic realty

company with expanding interests in commercial, retail and

residential real estate. Bharti Realty aims to be amongst the

most admired real estate players in India and aspires to

attain highest degree of customer trust through superior

product design and maintaining an uncompromising stand

towards environmental responsibility, ethics and safety

Bharti Infratel:-

Bharti Infratel, a wholly owned subsidiary of Bharti Airtel,

provides passive infrastructure services on a non-

discriminatory basis to all telecom operators in India. Bharti

Infratel also holds approximately 42% stake in Indus Towers,

a joint venture between Bharti, Vodafone and Idea to offer

passive infrastructure services.

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Chapter 2.1.3 Management Team

Registered and corporate office

Bharti Airtel Limied

Qutabambience,H-5/12,Mehraula Road,New delhi 110 030

Tel: +91 11 41 666 000Fax: + 91 11 41 666 011/12Website: http//www.airtel.in

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Chapter-3 Research objectives & Scope of

Research

Introduction:

Research always starts with a question or a problem. Its

purpose is answer to questions through the application of the

scientific methods. It is a systematic and intensive study

directed towards a more complete knowledge of the subject

studies. Once the problem is defined properly then one can

easily chalk out the Objectives for the research.

3.1 Problem Definition

A problem well defined is half-solvedPoorly defined problems

create confusion and do not allow the researcher to develop

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researchers. Formulation implies a clear statement or

definition of the problem.

A complete problem definition must specify each of the

following:

1. Sample and sampling units

2. Time and space boundaries

3. Product features, and consumer preferences

4. Specific environmental conditions

Taken together these four aspects identify who, when, where,

and what of the research. Here at my research project was

undertaken with Airtel.

With the respect of the respective head under ?roblem

Definitionmy research project is defined as follows:

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Research Study of Consumer Behavior in Postpaid Customer

Segment

3.2 Objectives of the Research Project

The subject matter for this research Project is to study the behavior of

the customer regarding the Post paid connections offered by Airtel in

Lucknow. This project consists of different objectives.

They are as follows:

lTo know the test and preferences of consumer for the Postpaid

products.

lTo know the current market share of Postpaid connections, PRI

plan.

lTo measure the customer satisfaction regarding the post paid

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lTo understand the reaction of consumers by listening to the Brand.

lTo know the sex ratio of Airtel users.

lTo know the current market player and competitors.

lTo study the customersthought process.

3.3 Product Scope

Scope of Airtel postpaid Product marketed by APPCO:

Appco had started Marketing and sales for Airtel from 2004

from Mumbai. Appco successfully hit the market in the postpaid

sector. Right now Appco is marketing for Airtel in Pune,

Chennai, Calcutta and Bangalore. In all this regions Appco is

running very successfully due to their strategic marketing

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methods. Appco is now focusing towards Delhi, Ahmadabad,

Punjab and other regions of Maharashtra. For this further

development Appco has conducted recently the test marketing

in Ahmadabad and Sholapur. The results ware satisfactory for

the test marketing conducted at these areas.

Research Methodology

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2Alternative Hypothesis HA: Customers are not

satisfied.

4.3 Sampling Plan

Type of sampling method adopted Stratified random sampling

A stratified random sample is one where the population is

divided into mutually exclusive and mutually exhaustive

strata or sub-group and then a simple random sample is

selected within

each of the strata or sub-groups. Thus, for the purpose of this

research project, the population of Pune is divided in to the

sub-groups on the basis of their income level. And from each

strata 10 samples are drawn or tested.

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results of the past behavior of people as also of past

occurrences.

Communication:

The communication method, in effect, is the method of

designing questionnaires with a view to collect the requisite

information.

Instruments:

From the above both data collection method, Questionnaire

(Communication method) is selected as the instrument for

collecting the data as the respondents are directly

interviewed by the researcher. The same questionnaire is

attached as an annexure to this report.

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Questionnaire Design:

From basic aspects of measurement and meaning, we

proceed to their application in designing the instruments for

seeking and recording data. Data may be obtained by either

observing or asking for them, and forms are needed for field

used in observation and interviewing. The accuracy and

relevancy of the data gathered depend heavily on the

questionnaire.

Function of questionnaires:

Questionnaire is simply a formalized schedule to obtain and

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accuracy and completeness. In other words, it directs the

questioning process and promotes clear and proper

recording.

4.6 Research Limitations:

One must be aware of these limitations in advance so that

one is clear about what Research can and cannotdo:

lFirst, very many times, marketing research tends to be

fragmentary in its approach as a result of which it

becomes difficult to have an overall perspective in which

a marketing problem is to be viewed and studied.

lSecond, marketing research is criticized on the ground

that it becomes too superficial and faulty in industry.

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Analysis,Interpretation

&Presentation

Chapter 5 Analysis, Interpretation & Presentation.

Question:1 Do you use Postpaid connection ?

Graph-

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3-Old number 19% 4-Good network

23%

5-Good tariff plan 14%

25% people are preferred for Better service and other reason

forces to be use, company? network.

Question:- 5 What is your total billing on postpaid are you

using?

Graph:-

Interpretation:- Here I found that 43% people are billing Rs.

5000-10000.

a- Rs 5000-10000 43% users

b- Rs 10000-15000 32% users

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c- Above Rs 15000 25% users

Question: -6 How do you know about Airtel

Landline/postpaid ?

Graph:-

Interpretation:- these data show that media is main forcible

mode of using Airtel to users.

aSales person 32%

b Media 36%

c

Neighbors /friends 22%

dOthers 10%

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Question:7 Are you using PRI plan or not ?

Graph-

Interpretation- In the first question we found that 52%

people are using postpaid PRI service and recent people are

not using in corporate.

Question:- 8 Which type of calls Do you made?

Graph:-

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Interpretation:- 42% people do the local calls and 32%

people do STD calls and other given below.

a- Local calls 42%

b- STD calls 32%

c- ISD calls 17%

d- all of the above 13%

SWOT ANALYSIS

Strengths

lThe company? name, Bharti Airtel, is the biggest

strength and support behind the plan and it helps in

establishing the faith of the customer.

lAvailability of product to customer in more faster then

other competitor. (Hand to hand).

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lThe package offered is very attractive.

lLow initial investment.

lLow local call rates.

lAttractive monthly rental.

lIf the plan is clearly conveyed to prospective customers

they will most probably buy the product.

lNo worthwhile competitor. B.S.N.L. is the main

competitors but monthly rental is a big weak point for

them.

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lThe project started in the rainy and sowing season. So

the farmers are busy in the fields and also invested lot

on the crop as a result they have less disposable finance

to own the phone.

lThe user manuals and the plan.s pamphlets are in

English. So, it is difficult for the majority of rural

customers to understand the plan.

lThe phone system is battery operated and the backup is

very small. Due to the frequent electricity failure, the

battery is not performing well.

lSalesmen in procuring stock and CAF waste Lot of time.

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l The features of the plan are very technical and difficult

for the rural customer to understand.

lChanges in the plan are not timely conveyed to the

salesmen.

lThe dealer is not showing his commitment towards the

company and also the company is not providing him the

sufficient support. For example:

lThe stock supply is not in time.

l The dealer is not very much interested in providing

after sale service to customer.

Opportunities

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they will definitely switch to the other phone system and

sales will fall down.

lThe rumors are also the major threat to the business.

Being illiterate, rumors affect the rural customers the

most and the company? images get affected.

lThe weak marketing activity is also the threat to the

image. The customer is notgetting proper information

about the plan and the dealer and the salesman are

fooling them.

lThe rainy season is also the threat to the sales volume

because it becomes difficult to reach the prospective

customer.

lThe stock supply and the voucher availability is very

poor so it effect the customer? faith and satisfaction.

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l In some cases, the customer? form get accepted but

even after two months the phone is not activated, if it is

the case of rejected form then the rejected form is not

submitted back to the salesman.

lChanges in the plan are not timely conveyed to the

salesmen.

lThe dealer doesn? give due attention to the important

identity proof of the customer submitted to him and also

in some cases it get misplaced. It is also the threat as it

makes the customer to suffer.

Technical Complaints

lBattery discharges in short span of time.

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lCalls are charged at the higher rates than mentioned in

plan.

lReceivers are defective in majority of instruments.

lWeak network and interference.

lDEL already exists.

lDEL not activated.

lDisplay is in English.

SUGGETIONS:-

lThe voucher? retail outlet should be opened so that the

customers get the voucher easily.

lProvide adequate training to the sales man.

l User manuals and the plan? pamphlets should be

printed in Hindi.

l Better quality batteries should be provided with the set.

l Sales promotion should be more intense.

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Conclusion

For Bharti Airtel Ltd.

lWe can see from the Consumer Research that most of

the respondents are using Airtel but they are just using it

because it is available in the market at the affordable

and comparative Prices.

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Suggestions

For Bharti Airtel Ltd.

lWell I suggest Airtel to increase the Quality and Capacity

of both, cellular services as well as other related services

such as Customer care support and roaming etc.

l Company has got a good span over Indian Market but

they need some more investment on the above

suggested topics to sustain NO.1 in the market.

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l Airtel is running successfully in Indian market so it can

diversify its business to other countries by the way of

mergers and amalgamations.

AnnexureQuestionnaire

We are student of PGDM ,and conducting survey for telecom industry, so please fill up the

Questionnaire.

TOPIC : Consumer Behaviour on Bharti Airtel

Personal Information:A. FullName: ___________________________________________________B. Contact NO.:________________ Mob:__________________C. Sex: Male FemaleD. Occupation: Student Housewife Job Retired

Business Unemployeed

E. Monthly Income:_______________

Details about Airtel:

1Do you use postpaid connection ?

Yes [ ] no [ ]

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1which company? telecom service are you using?

a- Airtel [ ] b- BSNL [ ] c-Reliance [ ]

1which Company? you prefer and suggest for better service?

a- Airtel [ ] b- BSNL [ ] c-Reliance [ ]

1Which things do force you for using the company? network?

a-Better service [ ] b-Brand name [ ] c-Old number [ ]

d-Good network [ ] e-Good tariff plan [ ]

1What is your total billing on postpaid are you using?

a- Rs 5000-10000 [ ] b- Rs 10000-15000 [ ] c- Above Rs 15000

[ ]

How do you know about Airtel Landline/postpaid ?

a- Sales person [ ] b-Media [ ]

c- Neighbour/friends [ ] d-Others [ ]

1are You using PRI plan or not?

a-Yes [ ] b- No [ ]

8. Which type of calls Do you made?

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OF MAGT.MISS. AJEETA0522-27213267000BSNL41 IILM ACADEMYMR. VARTHAYA0522-272729220000RIM+BSNL42ICFAI GOMTINAGARMR.

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PGP/FW/08-11 LCK/FW/08-11/M003


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Bibliography

Books:-

? Marketing Research G. C. Beri? Research Methodology C. R. Kothari? Principles of Marketing Philip Kotler

Websites:-

? http://www.google.com? http://en.wikipedia.org. http;//www.bharti.com? http://www.airtel.in

? Other Marketing research related sites.

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