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     aritel-reliance-info-ion aritel-reliance-info-ion Document Transcript

    • A SUMMER TRAINING PROJECT REPORT ON“COMPARISON OF AIRTEL WITH RELIANCE INFO COMM”“SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF BACHELOR OF BUSINESS ADMINISTRATION” (BBA) SUBMITTED BY: PALKEET SINGH BBA Final Yr Regd. No. : 2007.GIM/A.143 GURU NANAK INSTITUTE OF MANAGEMENT & IT ROAD NO-73, PUNJABI BAGH, NEW DELHI- 110026 (2007-2010) Guru Nanak Dev University AMRITSAR 1
    • Date: 15th June, 2009 CERTIFICATEThis is to certify that Mr. Palkeet Singh, student of Bachelor ofBusiness Administration, Guru Nanak Institute Of Management & ITand has completed Summer Training for the period of from trainingfrom 15th June 2009 to 30 July 2009 in our organization.We find him very sincere and hardworking. Wewish him all the success in life.for Airtel Ltd.Akhilesh KumarMarketing Manager159, Phase-1, Industrial Area, Chandigarh160002Ph No. 09915134909Email: nurajbr@delsco.iobnet.co.in 2
    • ACKNOWLEDGEMENTIt is indeed of great moment to pleasure to express my senses of per foundgratitude & indebt ness to all the people who have been instrumental in makingmy project a rich experience. I got the opportunity to do a challenging projectwith AIRTEL. The project is the important part of our study and gives us areal practical exposure to the corporate world and it is almost impossible to dothe same without the guidance of peoples in and around us.I am thankful to my project guide Ms. Manpreet Kaur & Ms Riti Passi for herguidance during my project. I am also thankful to my College Director Prof.J.S. Gujral for giving me chance to get such an experience and giving mechance to get an industrial experience.I would like to take this opportunity to extend my heartfelt gratitude to themanaging member of ICICI. The entire experience has been very encouragingand will certainly help me stand in good stead throughout my Career in Future. Signature PALKEET SINGH BBA – Final Yr GUIDE CERTIFICATE 3
    • This is to certify that the project titled “COMPARISON OF AIRTELWITH RELIANCE INFO COMM” is an original work of Mr.PALKEET SINGH, Enrollment student of Guru Nanak Institute ofManagement & IT , New Delhi submitted in partial fulfillment of therequirements for the award of Bachelor of Business Administration (BBA)(2007-2010) under the guidance of the committee..Signature of committee members Signature of H.O.D Ms. Riti Passi Mrs. Maninder KaurMs. Manpreet Kaur Signature of Director Prof. J.S Gujral CONTENTS 4
    • S.No TOPICS PAGE No.1. CHAPTER -1 6-8 Introduction :-2. CHAPTER -2 9-16 Research Methodology :- ♦ Objective of the study ♦ Data Collection Method ♦ Scope of the study3. CHAPTER -3 17-32 History of Tele sector in INDIA -:4. CHAPTER -4 33-58 Company profile -: ♦ Vision ♦ Strategic Objective5. CHAPTER -5 59-86 Data Analysis and Interpretation:- ♦ Comparison ♦ Swot Analysis6. CONCLUSION:- 87-88 BIBLIOGRAPHY:- 89 ANNEXURE -: 90-92 ♦ QUESTIONNAIR:- 5
    • CHAPTER -1 INTRODUCTIONINTRODUCTION -: 6
    • The project title “Comparison of AIRTEL with RelianceInfoComm.” is the analysis of the big scale sector ofcommunication. This project involves the big scale level providedby Airtel to its customers. The survey was conducted so as toanalyze the big scale sector prevailing in the current industryand the improvement that can be made upon it.The project is an extensive report on how the Airtel Companymarkets its strategies and how the company has been able intackling the present tough competition and how it is cooping upby the allegations of the quality of its products. The reportbegins with the history of the products and the introduction of theAirtel Company. This report also contains the basic strategiesthat are used by the Airtel Company of manufacturing process,technology, production policy, advertising, collaboration, exportscenario, future prospect and government policies. The reportincludes some of the key salient features of market trend issues.1. To identify the difference between market performance of Airtel industry and Reliance InfoComm. 7
    • 2. To study the market of Airtel Industry and Reliance InfoComm. On big scale sector.3. To compare various parameters of marketing strategies, manufacturing process, technology adopted production policy, advertising, collaboration, export scenario, future prospect for the two companies and government policies.4. To study the level of customer satisfaction in Airtel & Reliance Info.5. To study customer buying behavior and factors which influence the purchase decision process.6. To study consumer preferences.7. To study the consumer trend in telecommunication sector.8. To study competitive marketing strategies adopted by Airtel and Reliance InfoComm. 8
    • CHAPTER -2 RESEARCH METHODOLOGYRESEARCH METHODOLOGY -: 9
    • Achieving accuracy in any research requires a deep study regarding the subject. As the prime objective of the project is to compare Airtel with the existing competitor(reliance infocomm.) in the market and the impact of WLL on Airtel, The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed.Primary data was collected using the following techniquesQuestionnaire MethodDirect Interview Method andObservation MethodThe main tool used was, the questionnaire method. Further directinterview method, where a face-to-face formal interview was taken.Lastly observation method has been continuous with the questionnairemethod, as one continuously observes the surrounding environment heworks in. OBJECTIVE OF THE STUDY 10
    • Every organization has to achieve its organization goals. For this it is veryessential for an organization to know about the view of consumers and theircompetitive products. This survey research may be also aimed as to estimatepotential buyer for the product. The objective of the study is as under:-. To know about customer acceptance of the product. To suggest the steps for the sales promotion of the product. To study the requirement regarding to the future of the product. To analysis the consumer perception about the quality of the services. To find out solution of customers problems.. To know how the company has been successful in encountering the aggressive marketing strategies of competitors. 11
    • DATA COLLECTION METHOD THERE TWO TYPE OF METHOD OF DATA COLLECTION. • PRIMARY DATA • SECONDARY DATA DATA USED FOR THE RESEARCH WORK WAS PRIMARY IN NATURE. PRIMARY DATA: PRIMARY DATA IS THAT WHICH IS THE COLLECTED FOR THE FIST TIME AND THUS HAPPEN TO BE ORIGINATED IN CHARACTER.• QUESTIONNAIRE SURVEY: IN THE STUDIES A QUESTIONNAIRE IS PREPARED. THE QUESTIONNAIRE CONSISTS OF 20 QUESTIONS. 12
    • SECONDARY DATA: SECONDARY DATA REFER TO THE DATA THAT HAS BEEN ALREADY COLLECTED .THE SECONDARY DATA, WHICH HAS BEEN USED TO CARRY OUT THIS STUDY, ARE AS FOLLOW: • BOOKS, JOURNALS, MAGAZINES, NEWSPAPERS • INDUSTRY REPORTS • COMPANY’S INTERNET SITE • OTHER RELEVANT STUDIES MATERIAL AND WEBSITES.SAMPLE UNIT: - NEW DELHITHE RESEARCH PROCESS WAS DONE BY INTERACTINGWITH NUMBER OF CUSTOMERS DURING THE ACTIVITIESPERFORMED, WHICH INCLUDED, MARKETS, COLDCALLING, CANOPIES, ETC. SAMPLE DESIGN CONSISTS OFRANDOM SAMPLING.SAMPLE SIZE: - 50 PEOPLE 13
    • METHOD OF COLLECTION: -FIELD PROCEDURE FOR GATHERING PRIMARY DATAINCLUDED OBSERVATION AND INTERVIEW SCHEDULE INWHICH THE QUESTIONNAIRES WERE FILED BY THEINTERVIEWER.PERSONAL INTERVIEWS THROUGH SELF ADMINISTEREDSURVEY WAS DONE TO COLLECT THE DATA, MARKETRESEARCH WAS UNDERTAKEN, THAT WASACCOMPLISHED BY PERFORMING VARIOUS ACTIVITIESDESIGNED.RESEARCH INSTRUMENT: QUESTIONNAIRETHE QUESTIONNAIRE WAS FORMULATED BY KEEP INMIND THE FOLLOWING POINTS: - • GIVING THE RESPONDENTS CLEAR COMPREHENSION OF THE QUESTION. • INDUCING THE RESPONDENTS TO CO-OPERATE. • GIVING INSTRUCTIONS AS TO WHAT IS NEEDED. IDENTIFYING THE NEEDS TO BE KNOWN. 14
    • Scope of the study# To conduct this research the target population was the mobile users,Who are using GSM technology.# Target geographic area. Sample size of 50 was taken.# To these 50 people a questionnaire was given, the questionnairewas a combination of both open ended and closed ended questions.# The date during which questionnaires were filled.# Some dealers were also interviewed to know their prospective.Interviews with the managers of GSM service providers were alsoconducted.# Finally the collected data and information was analyzed andcompiled to arrive at the conclusion and recommendations given.Sources of secondary dataUsed to obtain information on, Bharti’s history, current issues, policies,procedures etc, wherever required.# Internet# Magazines# Newspapers# Journals # Bharti Circulars # Bharti News Letters 15
    • LIMITATIONS:The following were the limitations that were there during the course of thestudy: 1. Limited time period. 2. Less number of respondents.Primary data was collected using the following techniques1. Questionnaire Method2. Direct Interview Method and3. Observation MethodThe main tool used was, the questionnaire method. Further directinterview method, where a face-to-face formal interview was taken.Lastly observation method has been continuous with the questionnairemethod, as one continuously observes the surrounding environment heworks in. 16
    • CHAPTER -3History of tele sector in India 17
    • HISTORY -;In the early 1990s, the Indian government adopted a new economicpolicy aimed at improving Indias competitiveness in the global marketsand the rapid growth of exports. Key to achieving these goals was aworld-class telecom infrastructure.In India, the telecom service areas are divided into four metros (NewDelhi, Mumbai, Chennai and Kolkatta) and 20 circles, which roughlycorrespond to the states in India. The circles are further classifiedunder "A," "B" and "C," with the "A" circle being the most attractive and"C" being the least attractive. The regulatory body at that time — theDepartment of Telecommunications (DOT) — allocated two cellularlicenses for each metro and circle. Thirty-four licenses for GSM900cellular services were auctioned to 22 firms in 1995. The first cellularservice was provided by, Modi Telstra in Kolkatta in August 1995. Forthe auction, it was stipulated that no firm can win in more than onemetro, three circles or both. The circles of Jammu and Kashmir andAndaman and Nicobar had no bidders, while West Bengal and Assamhad only one bidder each. 18
    • In 1996, the Telecom Regulatory Authority of India (TRAI) bill wasintroduced in the Lok Sabha, and the president officially announced theTRAI ordinance on 25 January 1997. The government decided to setup TRAI to separate regulatory functions from policy formulation,licensing and telecom operations. Prior to the creation of TRAI, thesefunctions were the sole responsibility of the DOT.High license fees and excessive bids for the cellular licenses puttremendous financial burden on the operators, diverting funds awayfrom network development and enhancements. As a result, by 1999many operators failed to pay their license fees and were in danger ofhaving their licenses withdrawn. In March 1999, a new telecom policywas put in place (New Telecom Policy [NTP] 1999). Under this newpolicy, the old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenuewere to be paid to the government. 19
    • 3.1 INDIAN CELLULAR MARKET - EARLIERROADBLOCKS AND THEIR RESOLUTIONIndian Cellular market immediately after the first round of licensing in1994-96 was beset by several problems for 3 - 4 years till the NewTelecom Policy of 1999 was announced. Some of these roadblocks /current position is tabulated below: 20
    • High license feesMigration to revenue sharing mode in 1999 mitigates high initial fundrequirements for payment of license fees.Inadequately funded businesses / weak and fragmented promotersBusinesses that have since been adequately funded growing at over60% per annum, while businesses with weak promoters continuing tolanguish - spate of acquisitions / mergers, with 4/5 major groupsemerging in the last one/two years.Regulatory authority not in placeTelecom Regulatory Authority of India (TRAI) firmly in place, and itsrole being accepted by all operators; Deptt of Telecommunications(DOT) restructured, with operations and policy making roles vested indifferent bodies. 21
    • Issues relating to unfavorable interconnect terms for private operators,pass through income, intra circle long distance, spectrum availabilityand allocation and the like remained unresolved for long periods.Interconnect terms since rationalized, risks on pass through income toDOT / BHARTI (Mahanagar Telecom Nigam Ltd.) resolved to thesatisfaction of all parties with changes in methodology / revenuesharing, intra circle long distance allowed, spectrum availability clearedwith vacation of frequencies for usage by GSM operators.Problems in Financial closures due to:  Licensing tenure of 10 years  Large up front cash requirements from promoters due to heavy license fee burden in initial stages of deployment Asset based financing approach by Indian Financial Institutions.  Licensing tenure increased from 10 to 20 years  Large up front cash requirements for license fee payments mitigated with migration to revenue sharing mode allowing promoters to deploy more capital for capital expenditure; project financing being considered by most financial institutions. 22
    • Foreign ownership / change of partner limitationsForeign ownership norms clarified, and change of partners allowed asa matter of routine allowing ease of entry / exit - paves the way for fullcontrol of businesses by foreign companies.Inadequate growth of market / subscribersRoadblocks spelt out earlier resulted in low market / subscriber growth,but with corrective measures taken, market / subscriber base expectedto zoom3.2 DEVELOPMENTS IN THE CELLULAR INDUSTRYThe interconnection regime between cellular operators and fixed-lineoperators is still biased against the former.Despite the recent gains of the cellular industry, not everything is rosy.The cellular penetration rate is still very low at 0.8 percent in a nationof over one billion people. 23
    • In recent years, many foreign companies had pulled out from theircellular joint ventures in India due to the difficult operating environmentand bureaucracy. In 1999 alone, Swiss COM pulled out from SterlingCellular, Telstra from Modi Telstra and both theTelecom Organization of Thailand and Jasmine International from JTMobile. In 2000, Telecom Malaysia sold its stake in Usha MartinTelecom, and both Shinawatra of Thailand and Bezeq exited fromFascel. In June 2001, British Telecom exited from Bharti Cellular. BellSouth International has also indicated its intention to pull out from Skycell Communications, and Hong Kong-based Distacom is seeking tosell its stake in Spice Communications. First Pacifics (based in HongKong) continued commitment to Escotel is uncertain, and the former isreviewing various options.The string of sell-outs notwithstanding, there has been a merger andacquisition wave sweeping across the Indian cellular industry in recentyears. Hong Kong-based Hutchison Whampoa, via HutchisonTelecommunications (HK), acquired major stakes in Sterling Cellular(December 1999), Usha Martin Telecom (mid-2000) and Fiscal(September 2000). Through a partnership with local company, KotakMahindra Finance, Hutchison Whampoa practically controls Fiscal and 24
    • Usha Martin Telecom, thus circumventing the 49 percent limit onforeign ownership in Indian cellular operators. Hutchison Whampoa isalso the controllingShareholder of Hutchison Max Telecom. Not to be outdone, BhartiEnterprises — another major cellular player — acquired control ofJT Telecom, which was later renamed Bharti Mobile (December 1999),and Sky cell Communications renamed Bharti Mobinet (August 2000).Bharti also acquired the Punjab license of Essar and startedoperations, giving competition to the lone operator there, SpiceCommunications. Going forward, Bharti is likely to merge all its cellularcompanies into one entity.Five companies together bid Rs16.3 billion to bag the licenses for thefourth operator slots in four metros and 13 circles. Bharti emerged asthe No. 1 bidder with eight new licenses, followed by Escotel with four,Hutchison with three, and Reliance and Idea cellular with one each.Bharti and Hutchison have already commenced operations in all thecircles while Idea is set to launch in Delhi. Escotel and Reliance havenot made any headway.BHARTI, the third cellular operator for Delhi and Mumbai, startedservices in March 2001. BSNL, as the third nationwide cellular 25
    • operator, launched services in Kolkatta and Bihar in January 2002.This was followed by Tamil Nadu in July 2002. A nationwide launchwas scheduled for 2 October 2002. However, this has been postponeduntil after mid October. Once BSNL rolls out its service,most telecom circles will have four cellular operators. There will betremendous competitive pressure, which will result in lower tariffs.Future rate cuts are expected, which will drive demand, together withfalling handset prices and the introduction of prepaid services.In the midst of declining interest in technology stocks, Bharti came outwith its long-awaited initial public offering (IPO) in January 2002.Leveraging on the success of its cellular service, the company got avery good response from the primary market. The total size of the IPOwas 185 million shares at a floor price of Rs10. The issue wasoversubscribed by more than 2.5 times, netting Rs8.3 billion. This willbe used to fuel its investment in long-distance, basic and cellularservices.As of October 2002, only BPL Mobile has launched commercialgeneral packet radio service (GPRS) in Mumbai. However, large-scaleuptake remains elusive. While both Bharti and Idea have GPRS-enabled networks, there is caution on their part to launch the service. 26
    • With hardly any applications, the success of GPRS remains aquestion.Building visibility and awarenessDeviating from competing on the price platform, cellular operators areactively promoting their brand and service portfolio through high-visibility advertising and promotional campaigns. Cellular operators likeBharti, Orange and BPL Mobile have been advertising aggressively onhoardings and kiosks. Public transport like the cityrail system and cabs are used widely to carry the message of mobility.Customer-focused activities are gaining traction among cellularoperators with the establishment of longstanding consumer benefitprograms. Orange in Mumbai offers "Orange Holidays" and "OrangeMonsoon Offers" at very attractive rates and added benefits likediscounts on airfare, food and beverages, among others. Others offerspecial privileges in retail outlets, cinemas and music shops.Enterprise mobile applications — promising revenue stream 27
    • All along, customer acquisition and the top line have been the focus.Few operators have concentrated on offering differentiated services forbusinesses. However, as operators realize that offering basic voiceand Short Message Service (SMS) will get them the numbers but notthe margins, some are now seriously looking at the enterprise segmentfor provisioning superior services.Cost-centered solutions like closed user group (CUG), value-adds likeunified messaging and instant alerts are being offered.A variety of mobile applications are finding takers among the enterprisesegment. Bharti is in the process of introducing a facility to fleetmanagement companies so that they can improve the efficiency oftrucks or buses by tracking movement and ensuring higher-use,accurate route planning. Premium automakers are also installing aglobal system for mobile communications inside a vehicle to help tracelost vehicles and track down stolen cars.Corporations can choose enhanced services like user-defined callrouting to prevent misuse. Calls can be barred, limiting access toselect numbers and diverting calls to one single number. Broadcastingservices are also quite popular, especially among fast food centers thathave a central number. Group SMS is quite popular, especially among 28
    • enterprises both in the service as well as the fast-moving consumergoods (FMCG) segment that have a large field force and need toprovide regular updates on inventory status, discount schemes andmovement of goods from warehouse to the retail outlet. Banks too findbulk SMS service very useful to forward transactional alerts to theircustomers.1.3 FUTURE TRENDS AND DEVELOPMENTThere will be more competition, forcing operators to constantly focuson differentiations to maintain their lead. • The implementation of enhanced networks like 2.5G will enable operators to offer data services. This is an opportunity to customize and differentiate better. • The entry of state-run operators like BSNL and BHARTI means that prices will no longer be controlled, thus there is less chance of a cartel being formed. • Network coverage in terms of geographic spread and quality of coverage is crucial especially for the business subscriber. • The bigger the service providers national presence, the better it is for businesses. On the roaming front, signing up with a national operator is advantageous. 29
    • • Limited mobility wireless in local-loop services (by fixed network service providers) will be a disadvantage for cellular operators in the short term. Consequently, operators need to streamline their customer relation activities and adopt aggressive subscriber acquisition and retention strategies.1.4 REGULATORY ISSUESThe operations of this sector are determined as under the IndianTelegraph Act of 1885. A document buried in the sands of time. Thenext major policy document, which was produced, was the NationalTelecom Policy of 1994, a consequence of the on going process ofliberalization.Year Event1851 First telephones in India1943 Nationalization of telephone companies1985 DoT was created1986 Creation of BHARTI and VSNL1991 Telecom equipment liberalized1994 Licenses for paging1994 Telecom policy announcedSeptember 1994 Guidelines for private sector participation in basic 30
    • servicesNovember 1994 Cellular licenses issued for metrosDecember 1994 Tenders for cellular licenses in 19 cities apart from 4 metrosJanuary 1995 Tenders for 2nd operator in basic services apart from DoT on circle basis.August 1995 VSNL launches Internet servicesJanuary 1996 TRAI formedNovember 1998 Internet policy announcedThe National Telecom Policy of 1994 document, which laid out broadpolicy guidelines rather than a series of action points. Like otherpolicies, it sought to achieve the impossible in finite time like improvequality of service and its availability, wide coverage (a phone in everyvillage), at reasonable rates, etc. The targets in quantifiable terms wereinstallation of 9.5mn additional lines, telephone on demand by 1997,and a PCO pop of 500. The Eighth Plan had also allowed privateoperators in value added services. To facilitate licensing, the nationwas divided into 20 circles (akin to a state) for basic and 21 circles forcellular telephony. Mumbai falls in Maharashtra circle and Delhi in itselfa circle.The basic premise on which competition has been introduced is thatevery circle will have one private operator apart from Dot/ BHARTI for 31
    • basic and two operators for cellular. Dot/ BHARTI have the option tobecome the third cellular operator in future.Government did not achieve most of its stated targets. The basictheme, which was broadening the reach of telephony in India, has notbeen met. Even liberalization policies were not implemented properly.The regulator TRAI was set up after delays and confusion and evenafter its creation, Dot continued to fight with it in courts. It was alsoaffected by the resource crunch, and financing options like BOT,BOOT and BOLT was not used at all. The major policy direction itshowed was to allow private sector entry in both basic and valueadded services. The intention, though noble failed to achieve its goalsbecause of improper implementation, the economic costs are stillborne by the end user.The telecom sector has witnessed some fundamental structural andinstitutional reforms in the past decade. Telecom equipmentmanufacturing was completely deregulated in 1991. Value-addedservices (including cellular services) were thrown open to privatesector participation in 1992. Basic services were opened to privateparticipation in 1994 by dividing the country into 21 telecom Circlesand allowing one private operator per Circle to compete with Dot. Anindependent telecom regulatory Authority of India was set up in 1997.A new Policy for Internet Service Policy Providers (ISPs) was 32
    • announced in 1998 allowing independent service providers to enter thesector ending the earlier monopoly of VSNL. Reorganization of DOT,separating policymaking function and service provision andcorporatization of DOTs operational network are two major institutionalreforms, which need to be implemented. 33
    • CHAPTER -4 COMPANY PROFILE 34
    • COMPANY PROFILE -:Vision"As we spread wings to expand our capabilities and explore newhorizons, the fundamental focus remains unchanged: seek out the besttechnology in the world and put it at the service of our ultimate user:our customer."These are the premise on which Bharti Enterprises has based its entireplan of action.Bharti Enterprises has been at the forefront of technology and hasrevolutionized telecommunications with its world-class products andservices.Established in 1985, Bharti has been a pioneering force in the telecomsector. With many firsts and innovations to its credit, ranging frombeing the first mobile service in Delhi, first private basic telephoneservice provider in the country, first Indian company to providecomprehensive telecom services outside India in Seychelles and firstprivate sector service provider to launch National Long DistanceServices in India. 35
    • Bharti had approximately 3.21 million total customers – nearly 2.88million mobile and 334,000 fixed line customers.Its services sector businesses include mobile operations in AndhraPradesh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh,Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtracircle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. Inaddition, it also has a fixed-line operations in the states of MadhyaPradesh and Chattisgarh, Haryana, Delhi, Karnataka and Tamil Naduand nationwide broadband and long distance networks.Bharti has recently launched national long distance services by offeringdata transmission services and voice transmission services for callsoriginating and terminating on most of Indias mobile networks.The Company is also implementing a submarine cable projectconnecting Chennai-Singapore for providing international bandwidth.Bharti Enterprises also manufactures and exports telephone terminalsand cordless phones. Apart from being the largest manufacturer oftelephone instruments, it is also the first telecom company to export itsproducts to the USA. 36
    • Bharti Tele-Ventures strategic objective is -:“To capitalise on the growth opportunities that the Company believesare available in the Indian telecommunications market and consolidateits position to be the leading integrated telecommunications servicesprovider in key markets in India, with a focus on providing mobileservices”.The Company has developed the following strategies to achieve itsstrategic objective: • Focus on maximizing revenues and margins; • Capture maximum telecommunications revenue potential with minimum geographical coverage; • Offer multiple telecommunications services to provide customers with a "one-stop shop" solution; • Position itself to tap data transmission opportunities and offer advanced mobile data services; • Focus on satisfying and retaining customers by ensuring high level of customer satisfaction; • Leverage strengths of its strategic and financial partners; and • Emphasize on human resource development to achieve operational efficiencies. 37
    • BusinessesBharti Tele-Ventures current businesses include - • Mobile services • Fixed-line • National and international long distance services • VSAT, Internet services and network solutionsCompetitive StrengthsBharti Tele-Ventures believes that the following elements willcontribute to the Companys success as an integratedtelecommunication services provider in India and will provide theCompany with a solid foundation to execute its business strategy: • Nationwide Footprint - approximately 92% of Indias total mobile subscribers resided in the Companys fifteen mobile circles. These 15 circles collectively accounted for approximately 56% of Indias land mass; • Focus on telecommunications to enable the Company to better anticipate industry trends and capitalize on new telecommunications-related business opportunities; 38
    • • The strong brand name recognition and a reputation for offering high quality service to its customers; • Quality management team with vision and proven execution skills; and • The Companys strong relationships with international strategic and financial investors such as SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group and New York Life Insurance.Brand Architecture:Bharti is working on a complex three-layered brandingarchitecture — to: • Create specific brands for each service, • Build sub-brands within each of these services and • Use Bharti as the mother brand providing the group its corporate identity as well as defining its goal to become a national builder of telecoms infrastructure. 39
    • BHARTI AIRTEL TOUCHTEL INDIA ONE (Cellular (Basic Service (National Long Operations) Operations) Distance)AirTel - The flagship brand for cellular operations all across thecountry.Touchtel - The brand earmarked for basic service operations.India One - The brand for national long distance (NLD)telephony 40
    • Though the costs of creating new brands are heavy but the groupwants to create “Distinct independent brands to addressdifferent customers and profiles”.Brand Strategy:To understand the brand strategy, let’s first look at the brand buildingexercise associated with Airtel — a brand that had to be repositionedrecently to address new needs in the market.When the brand was launched seven years ago, cellular telephonywasn’t a mass market by any means. For the average consumer,owning a cellular phone was expensive as tariff rates (at Rs 8 aminute) as well as instrument prices were steep — sometimes as muchas buying a second-hand car.Bharti could have addressed the customer by rationally explaining tohim the economic advantage of using a mobile phone. But Sachdevsays that such a strategy would not have worked for the simple reason 41
    • that the value from using the phone at the time was not commensuratewith the cost.“Instead of the value-proposition model, we decided to address thesensory benefit it gave to the customer as the main selling tack. Theidea was to become a badge value brand,” he explains.So the Airtel “leadership series” campaign was launched showingsuccessful men with their laptops and in their deluxe cars using themobile phone. In simple terms, it meant Airtel was positioned as anaspirational brand that was meant for leaders, for customers who stoodout in a crowd.Did it work? Repeated surveys following the launch showed that therewere three core benefits that were clearly associated with the brand —leadership, dynamism and performance.These were valuable qualities, but they only took Airtel far enough toestablish its presence in the market. As tariffs started dropping, itbecame necessary for Airtel to appeal to a wider audience. And thevarious brand-tracking exercises showed that despite all these goodthings, there was no emotional dimension to the brand — it wasperceived as cold, distant and efficient. 42
    • Sachdev and his team realized that in a business in which customerrelationships were the core this could be a major weakness. Thereason? With tariffs identical to competitor Reliance InfoComm. androughly the same level of service and schemes, it had now becomeimportant for Bharti to “humanize” Airtel and use that relationship as amajor differentiation.The brand had become something like Lufthansa — cold and efficient.What they needed was to become Singapore Airlines, efficient but alsohuman. A change in tack was important because this was a time whenthe cellular market was changing.The leadership series was okay when you were wooing the crème dela crème of society. Once you reached them you had to expand themarket so there was need to address to new customers.By that time, Bharti was already the leading cellular subscriber in Delhiwith a base of 3.77 lakh (it now has 1.2 million customers). And withtariffs becoming more affordable — as cell companies started cuttingprices — it was time to expand the market.How could Bharti leverage this leadership position down the valuechain? Surveys showed that the concept of leadership in thecustomer’s minds was also changing. Leadership did not mean 43
    • directing subordinates to execute orders but to work along with a teamto achieve common objectives — it was, again, a relationship gamethat needed to be reflected in the Airtel brand.Also, a survey showed that 50 per cent of the new customers choose amobile phone brand mostly through word-of-mouth endorsements fromfriends, family or colleagues. Thus, existing customers were animportant tool for market expansion and Bharti now focused on buildingcloser relationships with them.That is precisely what the brand tried to achieve through its newpositioning under the Airtel “Touch Tomorrow” brand campaign. Thisset of campaigns portrayed mobile users surrounded by caring familymembers. Says Sachdev: “The new campaign and positioning wasdesigned to highlight the relationship angle and make the brand softerand more sensitive.”As it looks to expand its cellular services nationwide —to eight newcircles apart from the seven in which it already operates — Bharti isnow realizing that there are new compulsions to rework the Airtelbrand, and a new exercise is being launched to this effect. Right now, 44
    • the company is unwilling to discuss the new positioning in detail. Butbroadly, the focus is on positioning Airtel as a power brand withnumerous regional sub-brands reflecting customer needs in variousparts of the country.If Airtel is becoming more humane and more sensitive as a brand,Bharti has also understood that one common brand for all cellularoperations might not always work in urban markets that are now gettingincreasingly saturated.To bring in new customers, the company decided that it needed tosegment the market. One such experiment, launched last year, isYoutopia, a brand aimed at the youth in the 14 to 19 age bracket andfor those who are “young at heart”. With its earlier positioning, Airtelwas perceived as a brand for the well-heeled older customer; therewas nothing for younger people. With Youtopia, Airtel hoped to reversethat.In order to deliver the concept, Airtel offered rock bottom tariff rates (25paisa for 30 seconds) at night to Youtopia customers — a time whenthey make the maximum number of calls. It also set up merchandisingexercises around the scheme — like a special portal for young peopleto buy things or bid for goods. 45
    • The company is now looking at offering other services at affordableprices to this segment which include music downloads on the mobileand bundling SMS rates with normal calls to make it cheaper for youngpeople to use.The other experiment that Bharti has worked on is to go in for productsegmentation through the Tango brand name. The brandwas created to offer mobile users Internet-interface services or what isknown as WAP (Wireless Application Protocol).The idea was to bring Internet and mobile in perfect harmony. “Thename was chosen from the popular movie title It Takes Two ToTango: basically, you need the two services to tango to offercustomers a new choice”, says Sachdev.This, however, had less to do with the branding exercise as withinefficiency of service (accusingly slow download speeds) and thelimited utility of WAP services.Subsequently, the ads were withdrawn, but the company re-iteratedthat the branding exercise could be revived because Tango will be thebrand to offer GPRS services — or permanent Internet connectivity onthe mobile phone — which Airtel is expected to launch soon. 46
    • The Magic:Perhaps the more ambitious experiment has been with Magic — thepre-paid card. The idea was to make the brand affordable, accessibleand, most importantly, feasible as a means of expanding the marketeven faster.PHASE I –Magic was aimed at bringing in infrequent users of a mobile phone intothe market and assure him that he would have to pay only if he made acall. Such a customer used the phone sparingly — mostly foremergencies — and was not willing to pick up a normal mobileconnection with its relatively high rentals (pre-paid cards do not includerental charges).To achieve its objectives Bharti did three things. • One, the product was made available at prices ranging from Rs 300 to Rs 3,000 with no strings attached and was simple to operate. • Two, the product was made accessible and distributed through small stores, telephone booths and even kirana shops so that the offering was well within arms reach. 47
    • • Third, to make the product more “approachable” to the customer, the company came with vernacular ad campaignslike “Magic Daalo Se Hello” which appealed to local sensibilities.This apart, the company roped in Karisma Kapoor and Shah RukhKhan for a major ad campaign all across Delhi, a ruse that saw thenumber of subscribers go up from 5.47 lakh to 12 lakh today,overtaking Essar’s branded pre-paid card Speed, which was launchedmuch ahead of Magic. The company is now re-working its Magicstrategy even further.Earlier, the branding strategy was aimed at roping in only interestedcustomers — that is, customers who were already inclined to opt formobile services. But now, with basic service providers having beenallowed limited mobility at far cheaper rates, mobile service providerscould find themselves under threat again.That is why the new exercise is aimed at co-opting non-adopters. Whilethe exact strategy is under wraps, insiders say the new brandingstrategy would be aimed at offering them value which they had notperceived would be available from using a pre-paid card. 48
    • PHASE II -Bharti used Airtel Magic to build a strong value proposition andaccelerate market expansion through India’s first national pre-paid cardTV brand campaign• First time ever in India - any pre-paid card brand goes on TV• A combination of the film genre exposed through the TV medium designed to connect with the masses of India• Youth based - romance driven strategy platform makes the value proposition of Airtel Magic - ‘Mum kin Hai’ come alive• All elements - user imagery, context, tone & language created to connect the category to the lives of the SEC B & SEC C segment – the middle class non-mobile user.• Airtel Magic positions itself on the platform of being excellent for emergency situations - increasing productivity as a part of everyday life.• Shahrukh Khan makes ‘everything in life possible’ while romancing pretty Kareena Kapoor with Airtel Magic, India’s leading pre-paid mobile card. 49
    • Airtel today unveiled its strategy for market expansion with the launchof its new Airtel Magic pre-paid card brand campaign – ‘Magic hai toMum kin hai’. The strategy is targeted at the non-userSegment defined as young adults, 15-30 years of age; in the Sec B &C segment is aimed at accelerating market expansion. The valueproposition is centered around a person’s desire to make all his / herdreams, ambitions & aspirations instantly possible. The new campaignfor Airtel Magic is all about empowering millions of Indians to be on topof their lives.The brand is positioned to be relevant to the mass-market who want tomake all their dreams, hopes & desires come alive… instantly. (At justRs.300/- per month Airtel Magic is so easy to buy.) Improvingproductivity, letting you befriend the world and opening up newhorizons. It gives you the freedom to control your life in a way neverpossible before. Indeed, anything that you think is possible is possiblewith Airtel Magic. The new brand slogan ‘Magic hai to Mum kin hai’has been specially created to capture this effectively.This strategy is designed to help us talk to this segment directly in thetone, manner & language of the masses. The “Mum kin hai”value proposition will help us expand the market and gain a higherpercentage of market shares in the process. 50
    • The brand ambassadors Shahrukh Khan and Kareena Kapoor embodythis ‘can do’ or “Mumkin Hai” spirit (infact that is the reason they wereselected as brand ambassadors). Shahrukh rose from a TV actor tobecome India’s top film star and national heartthrob. Kareena’ssuccess is due to her ‘attitude’, talent, hard work and the sheer abilityto make a mark in such a short time. Both these stars have said‘Mumkin hai’ and made it happen for themselves.The genre of this new strategy & campaign is Hindi cinema led. Thisgenre connects millions across India. The spirit of romance, dancing…the Indian cinema, well known to most as Bollywood, holds millions ofIndians together as one.The new TV campaign of Airtel Magic crafted in the Hindi film idiom,magnifies the empowering optimism of “Mumkin Hai”, in the endearingsituation of a boy-girl romance. Where Shahrukh Khan, sets his eyeson Kareena Kapoor and wins her love with the help of Airtel Magic.(Poignantly conveying that special feeling we all get when a dream ismade possible and a victory of the heart is won).The strategy & new brand campaign is targeted at the large untappedbase of intending mobile customers from Sec A, B & C. 51
    • The estimated addressable market of such customers in the next twoyears is around 25 million in AirTel’s 16 states. The new strategy aimsat correcting the perception that the mobile category is useful mainlyfor ‘business’ or ‘work’ related scenarios.The new strategy, brand positioning & brand slogan is anoutcome of an extensive nationwide research and is anintegral part of Airtel Magic’s new multi-media campaign. Thecampaign has been created by Percept Advertising.PHASE III -Bharti used Airtel Magic to build a strong value proposition andaccelerate market expansion through India’s first national pre-paid cardTV brand campaign• First time ever in India - any pre-paid card brand gives such freedom to recharge any value• A combination of the film genre exposed through the TV medium designed to connect with the masses of India• Youth based - romance driven strategy platform makes the value proposition of Airtel Magic - ‘Aisi azaadi aur kahan?” come alive 52
    • • Shahrukh Khan makes ‘everything in life possible’ Airtel today unveiled its strategy for market expansion with the launch of it’s new Airtel Magic pre-paid card brand campaign – ‘Magic hai to Mumkin hai’. . The value proposition is centered around a person’s desire to make all his / her dreams, ambitions & aspirations instantly possible. The new campaign for Airtel Magic is all about empowering millions of Indians to be on top of their lives.The brand is positioned to be relevant to the mass-market who want tomake all their dreams, hopes & desires come alive… instantly .At aamount of your choice you can recharge your account with availablevalidity time .Improving productivity, letting you befriend the world andopening up new horizons. It gives you the freedom to control your lifein a way never possible before. Indeed, anything that you think ispossible is possible with Airtel Magic. The new brand slogan ‘Aisiazadi aur kahan has been specially created to capture this effectively. 53
    • Other Brand Building Initiatives:-The main idea is to stay ahead of competition for at least six months.Working on the above game plan Bharti is constantly coming up withnewer product offerings for the customers.The focus, of course, is to offer better quality of service. • To make the service simpler for customers using roaming facilities, Airtel has devised common numbers for subscribers across the country for services like customer care, food services and cinema amongst others. • It will also launch a unified billing system across circles so, customers moving from one place to another do not have to close and then again open new accounts at another place. • To assist customer care personnel to deal with subscriber queries, a storehouse of 40,000 frequently asked questions and their answers have been stored on the computers. • Bharti expects that most of its new customers (one estimate is that it would be 60 to 70 per cent of the total new subscriber 54
    • • base) would come from the pre-paid card segment. So,they must be given value-added products and services whichcompetitors don’t provide.• Bharti, for the first time for a cellular operator, has decidedto offer roaming services even to its pre-paid customers, but thefacility would be limited to the region in which they buy the card.To ensure that customers don’t migrate to other competingservices (which is known as churn and ranges from 10 to 15 percent of the customer base every month), the company is alsoworking on a loyalty program. This will offer subscribers tangiblecash benefits depending upon their usage of the phone.• The loyalty program will not be only for a ‘badge value’, itwill provide real benefits to customers. The idea is to create anAirtel community.• Another key area which Bharti is concentrating its attentionupon is a new roaming service launched in Delhi under whichcalls of a roaming subscriber who is visiting the city will be routeddirectly to his mobile instead of traveling via his home network.• The company also offers multi-media messaging systemsunder which customers having a specialized phone with a in-built 55
    • camera can take pictures and e-mail it to friends or store it in thephone. The cost per picture is between Rs 5 to Rs 7.• Bharti is also aware that it has to make owning a ready-to-use cellular service much easier than it is today. A key area is toincrease the number of activation centers. Earlier Bharti had 250Airtel Connect stores which were exclusive outlets (for itsservices) and about 250 Airtel Points which were kiosks in largershops. Now activation can be done by all of them, and not onlyby Connect outlets, all within 15 to 20 minutes. In comparison,the competition takes two to four hours.• Bharti is in the process of launching a new system inalliance with Mumbai-based Company Venture InfoTech whichwill enable a pre-paid card user to renew his subscription by justswiping a card. The system will not only save users the hassle ofgoing out and buying a card every time it expires but also enablemobile companies to reduce the cost of printing and distributingcards.• Bharti Televentures has tied up with Waiter on wheels, acompany delivering food at home, to reach its Magic pre-paidcards to subscribers doorsteps. The company is also joininghands with local grocery shops which will enable users to 56
    • recharge their cards by just making a phone call to the shop.Apart from improving the convenience of recharging, mobileoperators are beefing up their distribution channels. Thecompany is constantly innovating to enhance the valueproposition for its pre-paid service. They are leveragingtechnology to expand their distribution network and deliver round-the-clock recharge options to its MOTS (Mobile On the Spot)subscribers.• Bharti Cellular has also launched a special service,CareTouch, for high-value, corporate customers, providing themwith instant, single-point access for any assistance they require.Customers can dial 777 and enjoy a slew of services, whichincludes easier payment of bills, service on priority basis, andvalue-added services without any additional paper work. BhartiCellular is offering a range of services without going through aninteractive voice recorder ensuring that they save time. Dedicated‘Care Touch’ executives are expected to assist customers withany service on priority basis. Besides the regular proactivereminder calls for bill payment, customers can also call CareTouch for bill payments at free of cost. 57
    • Bharti’s View on its Branding strategy:-First, brand building efforts in today’s context have to be seen in amore holistic manner. Delivering value on a sustained basis is perhapsthe most potent key to build a brand that lasts.Unflinching orientation to customer needs is the second key successfactor. Customers (be it for industrial products or consumer goods andservices) across the world are more informed and, at the same time,becoming more individualistic in their needs and far more demandingwith the passage of time.Pro-active tracking of shifts in consumer behavior, anticipatingredefined or emerging customer needs, and then reacting in “real-time”are essential to attract and retain customer loyalty — a key element ofcreating brand equity in the present situation.Customizing the product (and communication of its benefit) to meet thespecific needs of various consumer/customer sub-segments is the thirdelement in creating brand appreciation.As far as allocation of time and financial resources are concerned, toomany companies mistakenly allocate a disproportionate amount onmere advertising and promotion. This is not to say that 58
    • advertising and promotion are less relevant. On the contrary, with morechoices and higher media clutter, businesses need to budget for anincreasingly higher spend on their brand promotion but this has to beundertaken in tandem with enterprise-wide “reengineering” of thebusiness philosophy and core design, production, and deliveryoperations for the product itself.The positive spin to this argument is that by first addressing thefundamentals, the enterprise itself becomes more competitive. This canbe the beginning of a virtuous cycle wherein brand equity continues toincrease as the enterprise sustains delivery of an appropriate productor service at an ever increasing value.It is, however, crucial to note that in the years to come, not only will thecost of building a regional or a national (or an international) brand willcontinue to rise but also the time taken to do so will be longer and willneed sustained and focused efforts. 59
    • CHAPTER -5DATA ANALYSIS & INTERPRETATION 60
    • DATA ANAYSIS -:Comparison of AIRTEL with RelianceInfoComm.The sub main purpose of this report is to compare the Airtel with its rivalReliance InfoComm.The comparison shows how both of the companies have beenChallenging each other to gain market shares.Why comparison with Reliance Infocomm?■Bharti Airtel is the leader in telecommunication sector.■Bharti Airtel holds the lion share of market of communication sector.■However, Reliance has been giving tough competition to Bharti Airtel.■Reliance Infocomm is the second largest player and share holder in Communication sector.■Since its launch Reliance info. has been adopting aggressive marketingStrategies. 61
    • ■The comparison shows how reliance info. Captured 22% market share in One month of its first launch of postpaid subscription in 2002.AD.■With a different technology cdma Reliance creates it own market.■Reliance Info. today deals in every business of communication sector.making and changing the strategies to capture the market shares 62
    • Brand positioning by Bharti AirtelMarket segmentationGeographical segment (metropolitans & cities India)Demographic segment - middle income groupsPeople age group of 20 to 28 yearTarget marketingPeople living cities and towns.Poor and middle income groups.Youngsters in big cities.BusinessmenPositioningCreating brands (Shahrukh khan & Sachin Tendulker)Ads and promotionsMarketing mixPrice : low price strategyPlace : maximum outlets and service centersProduct : verities available for various groupsPromotion: various schemes for pre-paid and post-paid 63
    • STRATEGIES OF RELIANCE INDIA MOBILE.Rim target the rural IndiaThe main targeted customers of Rim are from rural India.By offering cheap and light mobile sets Rim attracts most of the customersOf small villages and towns.Offering cheap handsetsRim offers cheap and free connections to all costumers.The cost for Rs-700set and onward.Free support and servicesIn every district and big towns rim opens its service centers to provide bettersupport and services.Strong logistics and supply chainRim has a strong logistict and supply all over India.In every small town the potential costumers can easily purchase the rim sets.Targeting youngsters in metropolitansRim attracts youngsters by offering colorful handset at verylow prices. 64
    • Brand positioning by RimMarket segmentationGeographical segment (rural India)Demographic segment - middle income groupsTarget marketingPeople living in small towns and villages.Poor and middle income groups.Youngsters in big cities.BusinessmenPositioningCreating brandsAds and promotionsMarketing mixPrice : low price strategyPlace : maximum outlets and service centersProduct : varities available for various groupsPromotion: various schemes for pre-paid and post-paid 65
    • Schemes started by RIMPlan name Plan 1000 Plan 1500 Plan 2000Monthly Plan Charge (Rs.) 1000 1500 2000Free Calls Worth (Rs.) 1000 1500 2000Rate per Call Unit # (Rs./Pulse) 1.00 0.90 0.85Refundable Deposit for ILD (Rs.) 1000 1000 1000 66
    • Call unit Plan 1000 Plan 1500 Plan 2000 Length(Pulse @ Re. 1.00 / @ Rs. 0.90 / @ Rs. 0.85 / )(Sec.) Pulse Pulse Pulse Local Calls (including 180 0.33 0.30 0.28 Intra- circle < 50 kms)Calls to Fixed Intra-lines circle > 50 60 1.00 0.90 0.85 kms 0- 50 90 0.67 0.60 0.57 Inter- kms circle > 50 30 2.00 1.80 1.70 kms Intra- 120 0.50 0.45 0.43 circleCalls to RIM Inter- 60 1.00 0.90 0.85 circle Intra- 60 1.00 0.90 0.85Calls to other circlemobiles Inter- 30 2.00 1.80 1.70 circle Effective Rate/Min is indicative. Charging would be done on the basis of Call Unit Length (Pulse). Call Unit Length (Pulse) is the duration of a call after the expiry of which, a new call starts. E.g. in Plan 1000 , a call to a local fixed line will be charged at Re. 1.00 for a 180 second call (or part thereof). Once you cross the 180 second Call Unit Length (Pulse), you will be charged another Re.1.00 which will allow you to talk for another 180 seconds. Note: Calls between Mumbai-Maharashtra, Chennai-Tamilnadu, Kolkata-West Bengal, UP(East) - UP (West) will be treated as Intra- Circle calls. 67
    • Call Rates to Satellite Phones by RIMInternet Usage Rates Call Charges ISP Call Total Depicted for Charges Unit Rate / Effective Charges Plan 1000 (Rs./Min.) length Call Unit Rate / Rs/ Hr. (Pulse) (Rs.) Min (Rs.) (Sec.)Peak HourRates on all 0.10 450 1.00 0.13 14days(06:30 - 22:30)Off-Peak HourRates on all 0.10 900 1.00 0.07 10days(22:30 - 06:30) Call Unit Region Rate (Rs.) Length (Pulse) (Sec.)Atlantic Ocean - East 1 5.83Pacific Ocean 1 5.83Indian Ocean 1 5.83 68
    • Schemes and plans by Bharti AirtelAmount Service Processing Talk Time Validity Tax (Rs.) (8%) Fees(Rs.) (Rs.) (Days) 54 4 25 25 5 60 4.44 25 30.56 5 75 5.56 25 44.44 5 100 7.41 25 67.59 5 125 9.26 50 65.74 10 150 11.11 50 88.89 10 175 12.96 50 112.04 10 200 14.81 50 135.19 10 216 16 85 115 20 225 16.67 85 123.33 20 250 18.52 85 146.48 20 275 20.37 85 169.63 20 300 22.22 85 183.78 20 Amount Service Processing Talk Time Validity Tax (Rs.) (8%) Fees(Rs.) (Rs.) (Days) 324 24 150 150 30 350 25.93 150 174.07 30 360 26.67 150 183.33 30 375 27.78 150 197.22 30 400 29.63 150 220.37 30 425 31.48 150 243.52 30 475 35.19 150 289.81 30 500 37.04 150 312.96 30 525 38.89 150 336.11 30 540 40 150 350 30 600 44.44 150 405.56 30 650 48.15 150 451.56 30 700 51.85 150 498.15 30 775 57.41 150 567.59 30 800 50.36 150 580.74 30 69
    • Tax( Rs.) (8%) Fees(Rs.) (Rs.) (Days) 850 62.96 150 637.04 60 900 66.67 150 683.33 60 1000 74.07 150 775.93 60 1080 80 150 850 60 1200 88.89 150 961.11 60 1300 96.3 150 1053.7 60 1400 103.7 150 1146.3 60 1500 111.11 150 1238.89 60 1800 133.33 150 1516.67 60 2000 148.15 150 1701.85 60 2160 160 150 1850 60 3000 222.22 150 2627.78 60 5000 370.37 300 4329.63 366 6000 444.44 300 5255.56 366 7000 518.52 300 6181.48 366 8000 592.59 300 7107.41 366 9000 666.67 300 8033.33 366 9999 740.67 300 8958.33 366 70
    • Services provided by Bharti Airtel • Mobile services with GSM technology • Fixed-line connections • National and international long distance services • VSAT, Internet services and network solutions • Broadband servicesServices provided by Reliance Infocomm.●mobile services with CDMA technology●fixed-line telephone services●Universal Internetworking●VoIP (Voice over Internet Protocol)●Interactive Television●Visual Communication●Broadband Portal●Telecommuting 71
    • Subscriber numbers in (mn) held byReliance and AIRTELService June-05 sep-05 Dec-05 Mar-06 Mar-07 Mar-08providerAirtel 3.19 4.62 5.50 6.50 10.98 14.07Reliance 1.82 4.20 6.24 7.26 10.45 12.99 72
    • Source.TRAI 73
    • 74
    • MARKET PLAYERS IN TELE COMMUNICATION Operator Market share Market share Mar04 Mar07 Bharti Airtel 19.06 22.49 Reliance 21.81 16.96 Infocom Vodafone 17.03 16.01 Idea Cellular 10.45 8.49 75
    • M AR KET SHAR E40353025 R e lia n c e20 A irte l T a ta15 BSNL10 5 0 L a n d l Bnr eo a d b a n d i 76
    • T im e t o p r o v id e s e r v ic e in d a y s 40 35 30 25 R e li a n c e T a k e m o r e R e lia n c e ti m e i n c o m p a ri s o n to 20 A irte l A i rte l T a tah a t’ s & t 15 T a ta w hy com pa ny 10 BSNL lo o s i n g t h e i r 5 c u s to m e r, a n d m a r k e t p o s i ti o n 0 RFS A re a 77
    • FINDINGS AND ANALYSISAge Group GraphAs we can see from the above graph, the people who are in the agegroup of 21-28 years are the ones who are the maximum users ofmobile phones. This segment is the one which gives maximumbusiness to the mobile operators. 78
    • This segment constitutes the young executives and other office goingpeople. They are 65% of the total people who were interviewed. Thenext age group are the people who are 28-35 years old. They are 20%of the total. They are those who are at home or have small businessunits etc. And the next age group is the youngest generation who are15-21 years old. They are school and college going students and carrymobile phones to flaunt. They are 15% of the total interviewed people. 79
    • Occupation Graph OCCUPATION 10% 15% 20% 55% STUDENTS EXECUTIVES HOUSEHOLDS OTHERSAs the above graph shows that 55% of the total people interviewed areworking. So, these people are the ones who are the maximum users ofmobile phones. They are the young executives, managers, Tele -callers etc. who require mobile for their official purposes. The nextcategory is the households, who are either housewife, small unitswhich operate from their homes etc. They are 20% of the whole. Thenext segment is the students. They are 15% of the whole. And 10% ofthe whole is categories who are the professionals. 80
    • Service Provider GraphThe above graph shows a slice of 50%. These are the total no. ofpeople who are using Airtel. It seems that people are more aware ofAirtel than any other brand. The next popular brand is Hutch. 305 ofthe people interviewed had Hutch connections. The next popular brandwas Idea. 15% people had Idea connections. As it came very late inthe market when Airtel had established it self very well. So, that couldbe one of the reasons of such a low percentage. The remaining 5%had trump connections. 81
    • Customer Service At Airtel Graph CUSTOMER SATISFACTION LEVEL 10% 20% 10% 60% FULLY PARTIALLY DISSATISFIED FULLY DISSATISFIEDAs the above graph clearly shows that customer services at Airtelseems poor. 60% of the people are dissatisfied with the customerservices provided by Airtel. They are the ones who have the maximumshare in the market but they are lagging behind in the customerservices. 10% of the people were fully dissatisfied with the customerservices of Airtel. This could leave an impact on the mind of theconsumer. He can even switch over his brand. 20% of the peopleseemed partially satisfied with the customer services and only 10%seem to be fully satisfied with Airtel’s customer services, which is avery small amount. 82
    • Type Of Card GraphCash cards seemed quite popular among the people interviewed. 85% of thetotal mobile users were having cash card connections. This means that thecash cards should be easily and readily available in the local markets. Airtelshould make sure that Magic is available in each and every nook and corner ofthe market. 15% of the people were having sim connections which is theregular bill. 83
    • Monthly expense graph Monthly Expense 12% 24% Rs 600 Rs 450 Rs 200 64%People on an average spend RS 500 per month as their mobile phoneexpense. 64% people spend this amount. 24% people spend RS 300per month as their monthly mobile expense. And the remaining 12%had an expense more than RS 1000, they could the ones having simconnections or having cash cards and having a lot of business calls ontheir mobiles. 84
    • SUGGESTIONSFollowing are the few suggestions to AIRTEL for improving the marketshare and image of the products concerned. 1. PRODUCT *Modification must be brought about in AIRTEL, in terms of quality. Its demand should be increased. 2. PLACE * The brands must be made available easily in, PCO & general stores. 3. PROMOTION *Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness. *Free samples should be distributed among the prospects. Sales promotion tools like gifts, contests and coupons must be given to retailers as well as customers and prospects. * Catalogues should be distributed among customers. 85
    • SWOT ANALYSISStrengths• Being one of the largest companies in India the company has achieved a degree of focus in its core business of its products.• It has a strong brand name, superior quality products and an enviable distribution network.• It has a clear and well-defined organization structure and limits of financial authority.• Increase in advertisement spends affect the company’s margins.• The company‘s bottom line falls victim to the bloated and highly paid workforce, which affects its margins. 86
    • Weakness: • Little efforts over the Advertising of products. • Distribution channel is not accurately categorized. • Premium priced products, hence can’t compete in low price segment. • No separate strategy for rural market.Opportunities:• The companys financial performance can receive a major boost from its cost reduction efforts.• There is a lot of scope of product and market diversification.• Exports of products will also have huge chances in the coming years.• Airtel’s business has ample scope for gaining market share from the unorganized sector. Rural penetration too holds vast potential to bring about growth. 87
    • Threats• The slowdown in the economy has restricted topline growth of most FMCG majors and for Airtel also it will be difficult to maintain historical growth rates in such a depressed scenario.• Company’s major raw materials are influenced by government policies / controls as well as vagaries of the monsoons. Fluctuations in the prices of raw materials would have significant impact on costs and margins of the company.Moreover, inordinate hike in Broad Band Internet products wouldalso increases company’s production and distribution cost. 88
    • CONCLUSIONAfter analyzing the findings of the research, I can conclude that Airtellagged behind its competitors as far as customer service andavailability is concerned. The maximum no. of people who use themobile is in the age group of 20 to 28. Cash cards are the mostpopular type of mobile connections, as they are consumer friendly andrecharging the connection is not a problem.Maximum no. of people spends RS 500 on their connections. As Airtelis the only company having the maximum no of mobile connections soit must seriously look into the loop holes of the existing customerservice department.As we know that now Airtel has already launched its product with logo“’ Aisi azaadi aur kahan”’ has already became popular in market. Sowe can say that in spite of so many competitor in the market Airtel ishaving a good position just because every time, it tries its best tounderstand the need of its important customers. 89
    • From the comparison and deep analysis of every aspect of business ofboth the companies we can conclude that bharti Airtel has to morework in every field of communication business.It is the time not only to survive but to sustain in the market for a longtime. For this Airtel has to work on its all marketing strategies,marketing, promotion, brand image.etc.Airtel has to take Reliance info. Very seriously and update its ownstrategies from time to time and when the need arises.With aggressive marketing strategies Airtel has to target rural India as70% of population of India live in these areas.The other segment may be costumers of all age groups. 90
    • BIBILIOGRAPHYBOOKS:-MARKETING MANAGEMENT, Dr. S.L Varshney andR.L Gupta, Third Revised Edition,Sultan Chand and Sons.NEWSPAPER:-Times Of INDIA.WEBSITESWWW.GOOGLE .CO.INWWW.AIRTEL .COM 91
    • ANNEXURE 92
    • QUESTIONNAIRE OF CUSTOMER1. Why do you use a mobile phone?  Commercial Use  Personal Use2. Which according to you is the best company?  Airtel  Reliance InfoComm3. Why do you prefer the above company?  Better Services  Coverage  Speed of connectivity  Economical  All the above4. Which connection do you use?  Post-paid  Pre-paid5. Why do you use the above connection?  Cheaper  Less Usage  Both6. How much is your monthly usage?  Less  Average  High7. Do you use your connection when you are on roaming?  Yes  No8. If yes, are you satisfied with roaming facilities?  Yes  No9. If No, why? 93
    •  Expensive  Less Visits  Both10. What prompted you to opt for Airtel/Reliance InfoComm?  Advertisements  Company Agent  Influence from people  Experience of friends  Others11. Except calling, which other services do you often use?  SMS  Call Wait  Voice Mail  E-mail  Call Hold  All above  None of them12. Are you satisfied with the billing structure of your mobile phone?  Yes  No 94