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    17261729 research-project-on-airtel-ads 17261729 research-project-on-airtel-ads Document Transcript

    • To find out effectiveness AIRTEL advertisements & their impact on the viewers Dissertation submitted in partial fulfillment of the requirements of the two year full-time Post Graduate Diploma in Business Management Programme. Submitted by KAPIL KUMAR Roll No: FT-07-563 Batch: 2007-2009 Institute for Integrated Learning in Management Graduate School of Management 16, Knowledge Park Greater Noida– 201 306 Month & Year-04/09 FINAL DISSERTATION1
    • DECLARATION FORMI hereby declare that the Project work entitled_______________________________________________________________________________ submitted by me for the partialfulfillment of the Post Graduate Diploma in Business Management Program to Institute forIntegrated Learning in Management, Greater Noida is my own original work and has notbeen submitted earlier either to IILM GSM or to any other Institution for the fulfillment of therequirement for any course of study. I also declare that no chapter of this manuscript in whole orin part is lifted and incorporated in this report from any earlier / other work done by me or others.Place :Date : Signature of StudentName of Student : _____________________________Address : _____________________________ ______________________________________ Acknowledgment2
    • I hereby take this opportunity to thank Institute for Integrated Learning in Management, Greater Noida for providing me an opportunity to do a research project on BHARTI AIRTEL. I express my sincere gratitude to my mentor and guide, Dr. Prabhat Pankaj who always provided me with necessary inputs, guidance and direction to carry out this project. Last but not the least, my million thanks to all the people whom I have conversed with and taken inputs from, to complete this project. (Kapil kumar) Table of Contents Acknowledgment……………………………………………………………….2 Executive Summary………………………………………….………………...5 Introduction…………………………………………………………………….63
    • Literature Review………………………………………………………………8 Airtel products……………...………………………………………………....9 Objective of Study…………………………………………………………….14 Research Methodology………………………………………………………..15 Data Analysis…………………………………………………………………16 Findings……………..………………………………………………………...27 Recommendations…………………………………………………………….28 Limitations of Study…………………………………………………………..29 Bibliography…………………………………………………………………..31 Questionnaire…………………………………………………………………32 EXECUTIVE SUMMARYMobile penetration is currently exploding in India and Bharti Airtel has been riding thecrest of the huge mobile industry wave that has been formed. Vast market opportunitieshave now opened up the playing field in Indian telecom market and also has made itmuch more competitive. In this type of competitive environment it will be interesting tofind out how AIRTEL advertisements have helped it to retain its number 1 position. Theobjective of the study is to find out how the different advertisements of AIRTEL areimpacting the viewers to use AIRTEL and what type of changes AIRTEL needs to makein near future to make its advertisements more efficient and effective.4
    • INTRODUCTION (COMPANY OVERVIEW)Incorporated on July 7, 1995, bharti AIRTEL is a division of Bharti enterprises. The businessesof Bharti Airtel are structured into two main strategic groups • Mobility • InfotelThe mobility business provides gsm mobile services in all 23 telecom circles in india.whileinfotel business group provides telephone services and internet access over dsl in 15 circles.The company complements its mobile, broadband and telephone services with national andinternational long distance services. The company also has a submarine cable landing station atChennai which connects the submarine cable connecting Chennai with Singapore.Bharti tele-ventures provides end to end data and enterprise services to corporate customers byleveraging its nationwide fiber-optic backbone, last mile connectivity in fixed line and mobilecircles.VSATs,ISP and international bandwidth access through the gateways and landingstation. All of Bharti-ventures services are provided under airtel.in 2008; bharti Airtel attained its5
    • 90 million customer mark. The equity shares of Airtel are listed on the national stock exchangeand Bombay stock exchange.Sunil Bharti mittal, the founder chairman of Bharti enterprises (who owns Airtel) is today themost celebrated face of the telecom sector in india.He symbolizes the adage that successcomes to those who dream big and work assiduously to deliver it. Sunil Bharti mittal began hisjourney manufacturing spare parts for bicycles in late 1970s.his strong entrepreneurial instinctsgave him a unique flair for sensing new business opportunities. In the early years, bhartiestablished itself as a supplier of basic telecom equipment. His true calling came in the mid1990s when the government opened up the sector and allowed private players to providetelecom services.Bharti enterprises accepted every opportunity provided by this new policy to evolve into India’slargest telecommunications company and one of the India’s most respected brands. Airtel waslaunched in 1995 in delhi.As the Airtel network expanded to several parts of India; the brandcame to symbolize the very essence of mobile services. Since then, Airtel has established itselfacross India in most of the states covering a population of over 600 million people. Airtel willsoon cover the entire country through a process of acquisitions and green field projects. With apresence in over 2,000 towns, Airtel today has the largest network capacity in the country.In the last nine years Airtel has achieved many firsts and unique records: it was the first tolaunch nationwide roaming operations, it was the first to cross the one million and the fivemillion customer marks. It was also the first to launch services overseas. There are other firstscredited to Airtel - many of them in the area of innovative products and services. Today, Airtelinnovates in almost everything that it presents to the market. An excellent example is EasyCharge - Indias first paperless electronic recharging facility for prepaid customers. As evidenceof its fine record, Airtel has also been conferred with numerous awards. It won the prestigiousTechies Award for being the best cellular services provider for four consecutive years between1997 and 2000 - a record that is still unmatched. And in 2003, it received the Voice & DataAward for being Indias largest cellular service provider, amongst others. Bharti Airtel hasenjoyed an excellent run ever since the telecom sector opened. It has managed to hold on to itsleadership position in spite of the presence of other players with deep pockets – Ambani’s,Tata’s, Birla’s and Vodafone. Has coped well with regulatory changes. It continues to attract anddelight customers.it has also started making its presence felt worldwide also. Recently AIRTELhas become the third largest telecom player in the world.6
    • Bharti Enterprises has successfully focused its strategy on telecom while straddling diversefields of business. From the creation of Airtel, one of Indias finest brands, to becoming thelargest manufacturer and exporter of world class telecom terminals under its Beetel brand,Bharti has created a significant position for itself in the global telecommunications sector. Board of DirectorsThe Board of Directors of the Company has an optimum mix of Executive and Non-ExecutiveDirectors, which consists of three Executive and fifteen Non-Executive Directors.The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an Executive Director and thenumber of Independent Directors on the Board is 50% of the total Board strength. Theindependence of a Director is determined on the basis that such director does not have anymaterial pecuniary relationship with the Company, its promoters or its management, which mayaffect the independence of the judgment of a Director.The Board members possess requisite skills, experience and expertise required to takedecisions, which are in the best interest of the Company. The composition of the Board is asunder: ➢ Sunil Bharti Mittal ➢ Rajan Bharti Mittal ➢ Akhil Gupta ➢ Rakesh Bharti Mittal ➢ Chua Sock Koong ➢ N. Kumar ➢ Kurt Hellstorm ➢ Donald Cameron7
    • ➢ Paul O’Sullivan ➢ Professor V.S. Raju ➢ Pulak Chandan Prasad ➢ Bashir Abdullah Currimjee ➢ Gavin Darby ➢ Syeda Imam ➢ Ajay Lal ➢ York Chye Chang ➢ Paul Donovan ➢ Arun Bharat Ram PRODUCTSThe Company is a part of Bharti Enterprises, and is Indias leading provider oftelecommunications services. The businesses at Bharti Airtel have been structured into threeindividual strategic business units (SBUs) - mobile services, broadband & telephone services(B&T) & enterprise services. The mobile services group provides GSM mobile services acrossIndia in 23 telecom circles, while the B&T business group provides broadband & telephoneservices in 90 cities. The Enterprise services group has two sub-units - carriers (long distanceservices) and services to corporate. All these services are provided under the Airtel brand. Itsinclude Voice Services Mobile Services Satellite Services Managed Data & Internet Services Managed e-Business ServicesVoice ServicesBharti Airtel became the first private fixed-line service provider in India. It is now promoted underthe Airtel brand. Recently, the Government opened the fixed-line industry to unlimitedcompetition. Airtel has subsequently started providing fixed- line services in the four circles ofDelhi, Haryana, Madhya Pradesh, Karnataka, Tamil Nadu & UP (West). Airtel Enterprise8
    • Services believes that these circles have high telecommunications potential,especially for carrying Voice & Data traffic. These circles were strategically selected so as toprovide synergies with Airtels long distance network and Airtels extensive mobile network.Airtel Enterprise Services, Indias premium telecommunication service, brings to you a wholenew experience in telephony. From integrated telephone services for Enterprises and smallbusiness enterprises to user-friendly plans for Broadband Internet Services (DSL),we bring innovative, cost-effective, comprehensive and multi-product solutions to cater to allyour telecom and data needs.Mobile ServicesAirtels mobile footprint extends across the country in 21 telecom circles. Its servicestandards compare with the very best in the world. In fact, that’s how Bharti has managedto win the trust of millions of customers and makes it one of the top 5 operators in the world, interms of service and subscriber base. The company has several Firsts to its credit: • The First to launch full roaming service on pre-paid in the country. • The First to launch 32K SIM cards. • The First in Asia to deploy the multi band feature in a wireless network for Efficient usage of spectrum. • The First to deploy Voice Quality Enhancers to improve voice quality and Acoustics. • The First telecom company in the world to receive the ISO 9001:2000 Certification from British Standards InstituteSatellite ServicesAirtel Enterprise Services provides you connectivity where ever you take yourBusiness. Satellite Services bring you the benefits of access in remoteLocations. Airtel Enterprise Services is a leading provider of broadband IPSatellite services and DAMA/PAMA services in India.Managed data & internet servicesAirtel enterprises services bring a comprehensive suite of data technologies. So Airtel is able tosupport all types of networks and ensure the customers can manage their network to the futureseamlessly. These services include: leased lines, customized solutions, metro Ethernet.Managed e-business servicesAirtel enterprise services offer an internationally benchmarked, carrier class hosting, storageand business continuity services. A huge range of services help the customers run theirbusiness the way they want. All this is possible because of world class high tech data centers.9
    • AIRTEL GROWTH STRATEGYMANTRA: Focus on Core Competencies and outsource the rest!Airtel has partnered with leading players in telecommunication sector across the globe. It hasmanaged to work with the best of domain specialists globally and emerge as a world classentity. Partnerships include operational contracts with marquee vendors and strategic investorsranging from private equity investors to global telecom giants. Following are the majorpartnerships of AIRTEL: • Warburg Pincus – a celebrated PE investor held a stake for a substantial period of time and was instrumental in providing Airtel support in its early stages. • Vodafone was a strategic investor in Airtel. The investment made by Vodafone in BHARTI is one of the largest investments made in Indian telecom sector. • Temasek – the Singapore based investor holds a considerable stake in it. • Ericsson was given the mandate to provide, manage and maintain the equipment as well as provide quality assurance in Airtel‘s then 13 mobile circles. • IBM was given the mandate to handle the back office requirements of Airtel’s presence in India • The company has a strategic alliance with Singtel.The investment made by SingTel is one of the largest investment made in the world outside Singapore.10
    • • In the case of broadband and telephone services and enterprise services, equipment suppliers include Siemens, Nortal and corning. • The call centre operations for the mobile services have been outsourced to IBM Daksh, Mphasis and Hinduja TMT. ACHIEVEMENTS First to launch Cellular service on November 1995. First operator to revolutionaries the concept of retailing with the inauguration of Airtel Connect (exclusive showrooms) in 1995. First to introduce push button phone in India. First to expand its network with the installation for second mobile switching center in April, 1997 and the first to introduce the Intelligent Network Platform. First to provide Roaming to its subscribers by forming an association called World 1 Network. First to provide roaming facility in USA. Enjoy the mobile roaming across 38 partner networks & above 700 cities Moreover roam across international destinations in 119 countries including USA, Canada, and UK etc with 284 partner networks.11
    • It is also the first company to export its products to the USA. PROMOTIONAL STRATEGYAfter the liberalization of the Indian Telecom Sector in 1994, the Indian cellular marketwitnessed a surge in cellular services. By 2005, there were a total of 12 players in the marketwith the five major players being Bharti Tele-Ventures Limited (Bharti), Bharat Sanchar NigamLimited (BSNL), Hutchinson-Essar limited (Hutch), Idea Cellular limited (Idea) and RelianceIndia Mobile (RIM) (Refer Exhibit I).All the players except RIM offered services based on the Global System for Mobile (GSM)technology. RIM provided services based on Code Division Multiple Access (CDMA) technologyas well as GSM.As competition in the telecom arena intensified, BHARTI AIRTEL took new initiatives to woocustomers. Prominent among these were - celebrity endorsements, loyalty rewards, discountcoupons, business solutions and talk time schemes. AIRTEL has used most number ofcelebrities for advertisements. The list includes-Sachin, Shahrukh, Rehmaan, Saif Ali Khan,Kareena Kapoor, Zaheer Khan Etc.The most important consumer segments in the cellularindustry were the youth segment and the business class segment. The youth segment was thelargest and fastest growing segment and was therefore targeted most heavily by cellular serviceprovider.Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By 2004 itemerged the unprecedented leader commanding the largest market share in the cellular servicemarket. Hutch implemented the celebrity endorsement strategy partially, relying primarily on itscreative advertising for the promotion of its brand. BSNL, on the other hand, attracted theconsumer through its low cost schemes. Being a state owned player, BSNL could cover rural12
    • areas, and this helped it increase its subscriber base. Reliance was another player that cashedon its innovative promotional strategies, which included celebrity endorsements and attractivetalk time schemes. Idea relied heavily on its creative media advertising sans celebrities. OBJECTIVE OF THE STUDYThe objective of the study is to find out the effectiveness of AIRTEL advertisements i.e. • What type of impact these advertisements have on the viewers? • Are the viewers getting the desired message?The secondary objective includes finding out following: • What type of advertisements viewers now days like? • What type of changes AIRTEL needs to make in future?13
    • RESEARCH METODOLOGYThe data was collected from primary as well as secondary sources.Primary data source:Around 80 people were randomly selected and their response to the questionnaire was taken asprimary data.Secondary data source: the secondary data was collected from following sources • AIRTEL website • Newspapers • InternetThe total number of respondents was 80.Out of which 24 were female respondentsand rests 56 were males.14
    • The respondents are categorized in three different groups. First group consists ofperson less than 20 years of age. These are mainly teenagers and are most likely tobuy or use new mobile connections. The second group i.e.20-35 years of age arealready using one or the other connection. The last group was mainly of somewhatolder people and consists of 30% of the total sample.The graph shows the % distribution of customers of different service providers.There are some more players in the market but for the shake of clarity, only thesesix were given consideration. Out of the major six players, Airtel is found to behaving the largest market share with 32%.the main competitors to AIRTEL in termsof number of customers are BSNL and Vodafone.15
    • Popularity of ads of different brands among viewersThe advertisements of Vodafone were found to be more popular among therespondents. Most of them talked about the ‘’hutch dog”. Similarly the tag line ofIDEA ‘’an idea can change your life” is also very popular. AIRTEL ads are supposedto be more or less centered on emotional factors.75% of the respondents said that they like the TV ads more than any other mediumof advertisement. The main internet users now a days i.e. youngsters were found tohave a liking towards the advertisements used on internet. The housewives and thepeople older than 3 years like to go through advertisements in newspapers andmagazines etc, and also like the advertisements on radio or local FM stations.16
    • Major portion of the respondents categorized AIRTEL ads as emotional ads. In everyadvertisement, one or the other facet of the human relations is at the centre. TheAIRTEL ads were also considered to be different from the competitors andinnovative. Many respondents claimed that the fun part was always missing fromthe AIRTEL ads.Out of all celebrities endorsing AIRTEL, A.R.Rehmaan is most famous among theviewers. Almost every respondent linked the AIRTEL success with the famous TONEcomposed by Rehmaan.The girls mainly like the advertisements with Saif Ali khanand Shahrukh khan. One of the finding was that using too many celebrities in17
    • advertisements is not that much effective. AIRTEL advertisement with sevencelebrities including Saif, Kareena, Zaheer khan, Gautam Gambhir is supposed bythe viewers as wastage of money.60% of the respondents believe that the Celebrity endorsements give a brand a touch ofglamour and the hope that a famous face will provide added appeal and name recognition ina crowded market.AIRTEL itself is already using a number of celebrities in its advertisements like shahrukhkhan, Saif ali khan,kareena,Sachin,Madhvan etc. so in near future also AIRTEL should moveon with celebrity endorsements as viewers give them value and have a liking towards them.Major portion of the viewers got the message from the AIRTEL ads as it is a brandthat offers services at cheaper price. The ads don’t give any hint about the servicequality. So AIRTEL should give some consideration to this fact and try to emphasizeon the better quality also through the advertisements.18
    • The claims made in AIRTEL ads are believable??About 50% of the respondents had this belief that the claims made about theconnectivity, voice clarity etc in the AIRTEL ads are true. The major portion of these50% respondents was actually the AIRTEL users.35% of people suppose theseclaims as just a part of advertisement and non existing in actual.70% of the respondents said that they started using that sim card because of one orother type of scheme. The different types of schemes like-10 paisa call, night callingfree etc help the customers make their mind to shift to that particular serviceprovider. The advertisements in general have a very small impact on their decision.19
    • FINDINGS FROM THE STUDYThe research carried out helped us to come to the following out comes: ➢ In terms of liking of ads, Vodafone is way ahead of AIRTEL. ➢ Viewers have a liking towards most of the celebrities used in AIRTEL ads. ➢ The viewers like the ads with some funny content but this is missing in most of the AIRTEL ads ➢ The majority of the customers starts or shifts to a service provider based upon word of mouth and different schemes. The advertisements play a very little part in their decision. ➢ The preferences of the viewers for the celebrities are always changing so we can’t rely on a single celebrity for ever. ➢ Viewers like to see short and up to the mark ads but Most of the AIRTEL ads are too lengthy.20
    • RECOMMENDATIONS ➢ Along with using various celebrities for endorsements, AIRTEL should try to introduce advertisements with some sort of humor. ➢ The majority of perspective customers are teenagers, so AIRTEL ads should be more focused around them ➢ The people now days have started using more and more internet, so along with TV advertisements, AIRTEL should give more attention to online advertisements. ➢ People give very less attention to the print ads, so these ads should be mainly informative ads i.e. the ads giving information about new schemes and recharge coupons etc.21
    • LIMITATIONSThe research was carried out taking care of each & every small points which can alterthe results but still there were some limitations that must be acknowledged • The respondents chosen were mainly from cities. So the results don’t include the responses of rural customers. • To find out the overall effectiveness of advertisements a lot of data regarding the price paid to the celebrities and cost of advertisement etc. was required, but as this type of data is classified so it was not available.22
    • CONCLUSIONMobile penetration is currently exploding in INDIA and Bharti Airtel has been riding the crest ofthe huge mobile industry wave that has been formed. Consequently great potential and hugemarket opportunities have now opened up the playing field in India’s telecom market and alsomade it much more competitive. In the present open market environment, there are currentlyover 10 major operators in India which are competing with each other to get the major share ofthis market. So at any point of time, AIRTEL can’t take things lightly. It needs to change itsmarketing and advertising strategies gradually. The advertisements used at present seemappropriate for AIRTEL but we can’t always rely on these advertisements and the celebrities. Bibliography23
    • www.airtelworld.com www.scribd.com www.wikipedia.org Search engine used www.google.com www.trai.gov.in24
    • QUESTIONNAIREDear Respondent,I am a student of Institute for Integrated Learning in Management, GreaterNoida and doing a research for a study for which I intend to pose a questionnaire to find outimpact of the advertisements of some of the big players of Indian telecom sector.Your cooperation is deeply solicited to provide the relevant information. I assure thatinformation will be kept confidential.Please tick at the place that matches your opinion.1. YOU ARE25
    • • Male • Female2. Specify your age • <20 • 20-35 • 35+3. Which service provider you use • Airtel • Vodafone • Reliance • Tata indicom • Idea • Banal4. You like mainly ads of which brand • Airtel • Vodafone • Reliance • Tata indicom • Idea • Banal5. Which type of ads you like most • TV commercials • Print ads • Internet • Radio • Bill boards6. How would you describe Airtel ads in general? • Emotional26
    • • Boring • Funny • Informative • Creative7. The celebrity you like most in Airtel ads • Sachin • Shahrukh • Rehmaan • Saif & kareena8. Do celebrity endorsements make some difference? • Yes • No • Can’t say9. What message you get from Airtel ads • Trying to create brand awareness • Cheaper than competitors • High quality at lesser price10. The claims made in Airtel ads are believable • Very agree • Agree • Neutral • Disagree • Strong disagree11. You chose a service provider based upon • Advertisements27
    • • Family and friends • Any particular service/scheme • Connectivity and clarity12. Do you talk to someone else about Airtel Ads? • Always • Sometimes • Never(Thanks for Co-operation)28