28333950 airtel-and-vodafone-marketing-analysis
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  • 1. A Project Report On“Comparative analysis of MARKETING STRATEGIES OF Vodafone & AIRTEL” Submitted for the partial fulfillment of the requirement For the award of degree of“Master OF BUSINESS ADMINISTRATION” SUBMITTED BY:- Umesh Garg MBA 1V Sem. Roll No. 08/MBA042 SUBMITTED TO Mr. Narender Tanwar Head of Management departmentBhawani Shankar anangpuria institute of technology & management Alampur, Faridabad-121004
  • 2. ACKNOWLEDGEMENT I Umesh Garg, sincerely thankful to all those people who have been giving me anykind of assistance in the making of this project report.I express my gratitude to Mrs. Priyanka Singh, who has through her vast experience andknowledge has been able to guide me, both ably and successfully towards thecompletion of the project. I express my gratitude to Bhawani Shankar Anangpuria Instituteof Technology & Management, FaridabadI would hereby, make most of the opportunity by expressing my sincerest thanks to allmy faculties whose teachings gave me conceptual understanding and clarity ofcomprehension, which ultimately made my job more easy. Credit also goes to all myfriends whose encouragement kept me in good stead. Their continuous support hasgiven me the strength and confidence to complete the project without any difficulty. Last of all but not the least I would like to acknowledge my gratitude to therespondents without whom this survey would have been incomplete. I am also thankful to authority of Airtel & Vodafone for providing me the information. (UMESH GARG)
  • 3. CONTENT 1. Acknowledgement 2. Contents 3. Declaration 4. Synopsis 5. introduction 6. Need of the study 7. objectives of the study 8. introduction of the topic • Telecom sector in India • Airtel • Vodafone • Background • Company profile of Airtel • The magic • Comparison between marketing strategy of Bharti Airtel and Vodafone 9. Research Methodology • Type of research methodology • Data collection method • Method of collection 10. Data Analysis and Interpretation 11. Swot analysis 12. Suggestion & Conclusion 13. Recommendations 14. Bibliography 15. Questionnaire
  • 4. DeclarationI, Umesh Garg being a student of MBA of Bhawani Shankar Anangpuria Institute ofTechnology & Management. (B.S.A.I.T.M.), Faridabad. Hereby declares that the projectreport under title “Comparative Analysis of Marketing Strategies of Vodafone & Airtel.” Ismy own work it is the analysis of the big scale sector of communication. This projectinvolves the big scale services involved in telecommunication sector provided by Airteland Vodafone to its customers. The survey was conducted so as to analyze the big scalesector prevailing in the current industry and the improvement that can be made upon it.All care has been taken to keep this report error free and I sincerely regret for any unintendeddiscrepancies that might have crept into this report. I shall be highly obliged if errors (if any) bebrought to my attention.Thank YouUmesh Garg.
  • 5. NEED OF THE STUDY1. To identify the difference between market performance of Airtel industry and Vodafone.2. To study the market of Airtel Industry and Vodafone on big scale telecommunication 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 & Vodafone.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 Vodafone.
  • 6. OBJECTIVE OF THE STUDYEvery organization has to achieve its organization goals. For this it is very essential for anorganization to know about the view of consumers and their competitive products. This surveyresearch may be also aimed as to estimate potential buyer for the product. The objective of thestudy is as under:-1. To identify the difference between market performance of Airtel industry and Vodafone.2. To study the market of Airtel Industry and Vodafone on big scale telecommunication 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 customer buying behavior and factors which influence the purchase decision process.5. To know how the company has been successful in encountering the aggressive marketing strategies of competitors.
  • 7. SYNOPSISTelecom Sector In IndiaThan 125 million telephones network is one of the largest communication networks inworld, which continues to grow at a blistering pace.The rapid growth in the telecom sector can be attributed to the various pro-active andpositive policy measures taken by the government as well as the dynamic andentrepreneurial spirit of the various telecom service providers both in private and publicsector. The telecom sector has shown impressive growth during the past decade. Today,moreTwo striking features of this growth viz. increasing preference for mobile phones andhigher contribution of private sector in the incremental growth have predominated thetelecom sector. The share of mobile phones (including WLL mobile) has overtaken theshare of landlines with 62% in the total number of phones. The private sectors contributionis also increasing rapidly. Currently more than 30 lakh phones are being added each monthand it is targeted that by the end of 2008 the total number of phones may reach a level of350 million taking the tele-density to more than 30% which is currently at 24.63%. Network Expansion: The total number of telephone subscribers has reached 281.62million at the end of January 2008 as compared to 232.87 million in July 2007. The overallTeledensity has increased to 23.63% in January 2008 as compared to 21.20% in August2007.Wireless Service: The wireless segment saw a surge of 8.77 million subscribers last monthcompared to 8.17 million in December2007. This pushed the total wireless subscribers baseto 242.40 million by Jan 31 2008.
  • 8. Wire line Subscribers: The wire line segment subscriber base stood at 39.73 million witha decrease of 0.16 million at the end of January 2008.Teledensity: The gross subscriber base reached 206.83 million at the end of March 2007.The Teledensity is 24.63%at the end of January 2008 as compared to 18.31% at the end ofMarch 2007, registering an increase of 6%.Increasing Role of Private Sector: The private sector has played a significant role in thegrowth of telecom sector. The share of private sector has risen to 85 per cent in December2007 from 64.14 per cent in November 2006.Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due toincreased competition. The minimum effective charges for local calls have fallenconsiderably in recent months especially for cellular service. The long distance domestic aswell as international charges have also fallen considerably.Telecom Regulatory Authority of India (TRAI): TRAI was established under theTelecom Regulatory Authority of India Act, 1997 enacted on March 28,1997. The goalsand objectives of TRAI are focused towards providing a regulatory framework thatfacilitates achievement of the objectives of New Technology Policy (NTP) 1999.TRAI has endeavored to encourage greater corporation in the telecom sector together withbetter quality and affordable prices.
  • 9. AIRTELAirtel is a brand of telecommunication services in India operated by Bharti Airtel.Airtel is the largest cellular service provider in India in terms of number ofsubscribers. Bharti Airtel owns the Airtel brand and provides the following servicesunder the brand name Airtel: Mobile Services (using GSM Technology), Broadband& Telephone Services (Fixed line, Internet Connectivity(DSL) and Leased Line),Long Distance Services and Enterprise Services (Telecommunications Consultingfor corporates). It has presence in all 23 circles of the country and covers 71% of thecurrent population (as of FY07).Leading international telecommunication companies such as Vodafone and SingTelheld partial stakes in Bharti Airtel.
  • 10. VODAFONE ESSARVodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16telecom circles in India Despite the official name being Vodafone Essar, its products aresimply branded Vodafone. It offers both prepaid and postpaid GSM cellular phonecoverage throughout India and is especially strong in the major metros.Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSMtechnology, offering voice and data services in 16 of the countrys 23 license areas.Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16telecom circles in India . Despite the official name being Vodafone Essar, its products aresimply branded Vodafone. It offers both prepaid and postpaid GSM cellular phonecoverage throughout India and is especially strong in the major metros.Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSMtechnology, offering voice and data services in 16 of the countrys 23 license areas.
  • 11. Introduction of the topic
  • 12. BACKGROUNDThe project is an extensive report on how the Airtel Company markets its strategies andhow the company has been able in tackling the present tough competition and how it isscooping up by the allegations of the quality of its products. The report begins with thehistory of the products and the introduction of the Airtel Company. This report alsocontains the basic marketing strategies that are used by the Airtel Company ofmanufacturing process, technology, production policy, advertising, collaboration, exportscenario, future prospect and government policies. The report includes some of the keysalient features of market trend issues.In today’s world of cutthroat fierce competition, it is very essential to not only exist butalso to excel in the market. Today’s market is enormously more complex. Hence forth,to survive in the market, the company not only needs to maximize its profit but alsoneeds to satisfy its customers and should try to build upon from there.
  • 13. COMPANY PROFILE OF AIRTEL
  • 14. Vision"As we spread wings to expand our capabilities and explore new horizons, the fundamental focusremains unchanged: seek out the best technology in the world and put it at the service of ourultimate user: our customer."These are the premise on which Bharti Enterprises has based its entire plan of action.Bharti Enterprises has been at the forefront of technology and has revolutionizedtelecommunications with its world-class products and services.Established in 1985, Bharti has been a pioneering force in the telecom sector. With many firsts andinnovations to its credit, ranging from being the first mobile service in Delhi, first private basictelephone service provider in the country, first Indian company to provide comprehensive telecomservices outside India in Seychelles and first private sector service provider to launch NationalLong Distance Services in India. Bharti had approximately 3.21 million total customers – nearly2.88 million mobile and 334,000 fixed line customers.Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Delhi,Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata, Madhya Pradesh circle,Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In addition, italso has fixed-line operations in the states of Madhya Pradesh and Chhattisgarh, Haryana, Delhi,Karnataka and Tamil Nadu and nationwide broadband and long distance networks.Bharti has recently launched national long distance services by offering data transmission servicesand voice transmission services for calls originating and terminating on most of Indias mobilenetworks.The Company is also implementing a submarine cable project connecting Chennai-Singapore forproviding international bandwidth.Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apartfrom being the largest manufacturer of telephone instruments, it is also the first telecom companyto export its products to the USA.Bharti Tele-Ventures strategic objective is “to capitalize on the growth opportunities that theCompany believes are available in the Indian telecommunications market and consolidate its
  • 15. position to be the leading integrated telecommunications services provider in key markets in India,with a focus on providing mobile services”.The Company has developed the following strategies to achieve its strategic 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.
  • 16. BusinessesBharti Tele-Ventures current businesses include - • Mobile services • Fixed-line • National and international long distance services • VSAT, Internet services and network solutions • Broadband services with DSL and Wi-Fi networkCompetitive StrengthsBharti Tele-Ventures believes that the following elements will contribute to the Companys successas an integrated telecommunication services provider in India and will provide the Company witha 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. • 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.
  • 17. Brand Architecture:Bharti is working on a complex three-layered branding architecture — 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 wellas defining its goal to become a national builder of telecoms infrastructure.
  • 18. BHARTI AIRTEL TOUCHTEL INDIA ONE (Cellular (Basic Service (National Long Operations) Operations) Distance)Airtel - The flagship brand for cellular operations all across the Indiancountry.Touchtel - The brand earmarked for basic service operations.India One - The brand for national long distance (NLD) telephonyThough the costs of creating new brands are heavy but the group wants tocreate “distinct independent brands to address different customers andprofiles”.
  • 19. Brand Strategy:To understand the brand strategy, let’s first look at the brand building exercise associated withAirtel — a brand that had to be repositioned recently to address new needs in the market.When the brand was launched seven years ago, cellular telephony wasn’t a mass market by anymeans. 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 much as buying a second-handcar.Bharti could have addressed the customer by rationally explaining to him the economic advantageof using a mobile phone. But Sachdev says that such a strategy would not have worked for thesimple reason that the value from using the phone at the time was not commensurate with the cost.“Instead of the value-proposition model, we decided to address the sensory benefit it gave to thecustomer as the main selling tack. The idea was to become a badge value brand,” he explains.So the Airtel “leadership series” campaign was launched showing successful men with theirlaptops and in their deluxe cars using the mobile phone. In simple terms, it meant Airtel waspositioned as an inspirational brand that was meant for leaders, for customers who stood out in acrowd.Did it work? Repeated surveys following the launch showed that there were three core benefits thatwere clearly associated with the brand — leadership, dynamism and performance.These were valuable qualities, but they only took Airtel far enough to establish its presence in themarket. As tariffs started dropping, it became necessary for Airtel to appeal to a wider audience.And the various brand-tracking exercises showed that despite all these good things, there was noemotional dimension to the brand — it was perceived as cold, distant and efficient.Sachdev and his team realized that in a business in which customer relationships were the core thiscould be a major weakness. The reason with tariffs identical to competitor Vodafone telecomm androughly the same level of service and schemes, it had now become important for Bharti to“humanize” Airtel and use that relationship as a major differentiation.The brand had become something like Lufthansa — cold and efficient. What they needed was tobecome Singapore Airlines, efficient but also human. A change in tack was important because thiswas a time when the cellular market was changing.
  • 20. The leadership series was okay when you were wooing the crème de la crème of society. Once youreached them you had to expand the market so there was need to address to new customers.By that time, Bharti was already the leading cellular subscriber in Delhi with a base of 3.77 lakh (itnow has 1.8 million customers). And with tariffs becoming more affordable — as cell companiesstarted cutting prices — it was time to expand the market.How could Bharti leverage this leadership position down the value chain? Surveys showed that theconcept of leadership in the customer’s minds was also changing. Leadership did not meandirecting subordinates to execute orders but to work along with a team to achieve commonobjectives — it was, again, a relationship game that needed to be reflected in the Airtel brand.Also, a survey showed that 50 per cent of the new customers choose a mobile phone brand mostlythrough word-of-mouth endorsements from friends, family or colleagues. Thus, existing customerswere an important tool for market expansion and Bharti now focused on building closerrelationships with them.That is precisely what the brand tried to achieve through its new positioning under the Airtel“Touch Tomorrow” brand campaign. This set of campaigns portrayed mobile users surrounded bycaring family members. Says Sachdev: “The new campaign and positioning was designed tohighlight the relationship angle and make the brand softer and more sensitive.”As it looks to expand its cellular services nationwide —to eight new circles apart from the seven inwhich it already operates — Bharti is now realizing that there are new compulsions to rework theAirtel brand, and a new exercise is being launched to this effect. Right now, the company isunwilling to discuss the new positioning in detail. But broadly, the focus is on positioning Airtel asa power brand with numerous regional sub-brands reflecting customer needs in various parts of thecountry.If Airtel is becoming more humane and more sensitive as a brand, Bharti has also understood thatone common brand for all cellular operations might not always work in urban markets that are nowgetting increasingly saturated.To bring in new customers, the company decided that it needed to segment the market. One suchexperiment, launched last year, is Youtopia, a brand aimed at the youth in the 14 to 19 age bracket
  • 21. and for those who are “young at heart”. With its earlier positioning, Airtel was perceived as abrand for the well-heeled older customer; there was nothing for younger people. With Youtopia,Airtel hoped to reverse that.In order to deliver the concept, Airtel offered rock bottom tariff rates (25 paise for 30 seconds) atnight to Youtopia customers — a time when they make the maximum number of calls. It also setup merchandising exercises around the scheme — like a special portal for young people to buythings or bid for goods.The company is now looking at offering other services at affordable prices to this segment whichinclude music downloads on the mobile and bundling SMS rates with normal calls to make itcheaper for young people to use.The other experiment that Bharti has worked on is to go in for product segmentation through theTango brand name. The brand was created to offer mobile users Internet-interface services or whatis known as WAP (Wireless Application Protocol).The idea was to bring Internet and mobile in perfect harmony. “The name was chosen from thepopular movie title It Takes Two to Tango: 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 with inefficiency of service (accusinglyslow download speeds) and the limited utility of WAP services.Subsequently, the ads were withdrawn, but the company re-iterated that the branding exercisecould be revived because Tango will be the brand to offer GPRS services — or permanent Internetconnectivity on the mobile phone — which Airtel is expected to launch soon.
  • 22. The MagicPerhaps the more ambitious experiment has been with Magic — the pre-paid card. The idea was tomake the brand affordable, accessible and, most importantly, feasible as a means of expanding themarket even faster.PHASE I –Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure himthat he would have to pay only if he made a call. Such a customer used the phone sparingly —mostly for emergencies — and was not willing to pick up a normal mobile connection with itsrelatively high rentals (pre-paid cards do not include rental 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 nostrings attached and was simple to operate.• Two, the product was made accessible and distributed through small stores, telephonebooths and even kirana shops so that the offering was well within arms reach.• Third, to make the product more “approachable” to the customer, the company came withvernacular ad campaignsLike “Magic Daalo Say Hello” which appealed to local sensibilities.
  • 23. This apart, the company roped in Karisma Kapoor and Shah Rukh Khan for a major ad campaignall across Delhi, a ruse that saw the number of subscribers go up from 5.47 lakh to 1.2 milliontoday, overtaking Essar’s branded pre-paid card Speed, which was launched much ahead of Magic.The company is now re-working its Magic strategy even further.Earlier, the branding strategy was aimed at roping in only interested customers — that is,customers who were already inclined to opt for mobile services. But now, with basic serviceproviders having been allowed limited mobility at far cheaper rates, mobile service providers couldfind themselves under threat again.That is why the new exercise is aimed at co-opting non-adopters. While the exact strategy is underwraps, insiders say the new branding strategy would be aimed at offering them value which theyhad not perceived would be available from using a pre-paid card.
  • 24. PHASE II -Bharti used Airtel Magic to build a strong value proposition and accelerate market expansionthrough India’s first national pre-paid card TV 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 - ‘Mumkin 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.• Sharukh Khan makes ‘everything in life possible’ while romancing pretty Kareena Kapoor with Airtel Magic, India’s leading pre-paid mobile card.Airtel today unveiled its strategy for market expansion with the launch of its new Airtel Magicpre-paid card brand campaign – ‘Magic hai to Mumkin 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 ataccelerating market expansion. The value proposition is centered around a person’s desire to makeall his / her dreams, ambitions & aspirations instantly possible. The new campaign for AirtelMagic 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 to make all their dreams,hopes & desires come alive… instantly. (At just Rs.300/- per month Airtel Magic is so easy tobuy.) Improving productivity, letting you befriend the world and opening up new horizons. Itgives you the freedom to control your life in a way never possible before. Indeed, anything thatyou think is possible is possible with Airtel Magic. The new brand slogan ‘Magic hai to Mumkinhai’ has been specially created to capture this effectively.
  • 25. This strategy is designed to help us talk to this segment directly in the tone, manner & language ofthe masses. The “Mumkin hai” value proposition will help us expand the market and gain a higherpercentage of market shares in the process.The brand ambassadors Shahrukh Khan and Kareena Kapoor embody this ‘can do’ or “MumkinHai” spirit (infact that is the reason they were selected as brand ambassadors). Sharukh rose froma TV actor to become India’s top film star and national heartthrob. Kareena’s success is due to her‘attitude’, talent, hard work and the sheer ability to make a mark in such a short time. Both thesestars have said ‘Mumkin hai’ and made it happen for themselves.The genre of this new strategy & campaign is Hindi cinema led. This genre connects millionsacross India. The spirit of romance, dancing… the Indian cinema, well known to most asBollywood, holds millions of Indians together as one.The new TV campaign of Airtel Magic crafted in the Hindi film idiom, magnifies the empoweringoptimism of “Mumkin Hai”, in the endearing situation of a boy-girl romance. Where SharukhKhan, sets his eyes on Kareena Kapoor and wins her love with the help of Airtel Magic.(Poignantly conveying that special feeling we all get when a dream is made possible and a victoryof the heart is won).The strategy & new brand campaign is targeted at the large untapped base of intending mobilecustomers from Sec A, B & C. The estimated addressable market of such customers in the nexttwo years is around 25 million in Airtel’s 16 states. The new strategy aims at correcting theperception that the mobile category is useful mainly for ‘business’ or ‘work’ related scenarios.The new strategy, brand positioning & brand slogan is an outcome of an extensive nationwideresearch and is an integral part of Airtel Magic’s new multi-media campaign. The campaign hasbeen created by Percept Advertising.
  • 26. PHASE III -Bharti used Airtel Magic to build a strong value proposition and accelerate market expansionthrough India’s first national pre-paid card TV 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• Sharukh Khan Makes ‘everything in life possible’ Airtel today unveiled its strategy for market expansion with the launch of its new Airtel Magic pre-paid card brand campaign – ‘Magic Hai to Mumkin Hai’. . The value proposition is centered on 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 to make all their dreams,hopes & desires come alive… instantly .At a amount of your choice you can recharge your accountwith available validity time .Improving productivity, letting you befriend the world and opening upnew horizons. It gives you the freedom to control your life in a way never possible before.Indeed, anything that you think is possible is possible with Airtel Magic. The new brand slogan‘Aisi azadi aur kahan’ has been specially created to capture this effectively.
  • 27. Other Brand Building Initiatives:-The main idea is to stay ahead of competition for at least six months. Working on the above gameplan Bharti is constantly coming up with newer 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 devisedcommon numbers for subscribers across the country for services like customer care, food servicesand cinema amongst others.• It will also launch a unified billing system across circles so, customers moving from oneplace 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 40,000frequently 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 percent of the total new subscriber base) would come from the pre-paid card segment. So, they mustbe given value-added products and services which competitors don’t provide.• Bharti, for the first time for a cellular operator, has decided to offer roaming services evento its pre-paid customers, but the facility would be limited to the region in which they buy the card.To ensure that customers don’t migrate to other competing services (which is known as churn andranges from 10 to 15 per cent of the customer base every month), the company is also working on aloyalty program. This will offer subscribers tangible cash benefits depending upon their usage ofthe phone.• The loyalty program will not be only for a ‘badge value’, it will provide real benefits tocustomers. The idea is to create an Airtel community.• Another key area which Bharti is concentrating its attention upon is a new roaming servicelaunched in Delhi under which calls of a roaming subscriber who is visiting the city will be routeddirectly to his mobile instead of traveling via his home network.
  • 28. • The company also offers multi-media messaging systems under which customers having aspecialized phone with a in-built 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 easierthan it is today. A key area is to increase the number of activation centers. Earlier Bharti had 250Airtel Connect stores which were exclusive outlets (for its services) and about 250 Airtel Pointswhich were kiosks in larger shops. Now activation can be done by all of them, and not only byConnect outlets, all within 15 to 20 minutes. In comparison, the competition takes two to fourhours.• Pre- paid cards are really catching up with the mobile phone users and it is actually helpingthe market to increase. First, they are easier to obtain and convenient to use. Unlike post-paid, oneneed not pay security deposits for picking up a pre-paid card. It is often available even withpaanwalas. As befits a fast-moving consumer service, the game is now moving beyond price toexpanding distribution reach and servicing a well-spread-out clientele with technology andstrategic alliances. Bharti is focusing on two factors to make pre-paid cards more attractive.Keeping the entry cost low for consumers and making recharging more convenience.• Bharti is in the process of launching a new system in alliance with Mumbai-basedCompany Venture InfoTech which will enable a pre-paid card user to renew his subscription byjust swiping a card. The system will not only save users the hassle of going out and buying a cardevery time it expires but also enable mobile companies to reduce the cost of printing anddistributing cards.• Bharti Televentures has tied up with Waiter on wheels, a company delivering food athome, to reach its Magic pre-paid cards to subscribers doorsteps. The company is also joininghands with local grocery shops which will enable users to recharge their cards by just making aphone call to the shop. Apart from improving the convenience of recharging, mobile operators arebeefing up their distribution channels. The company is constantly innovating to enhance the valueproposition for its pre-paid service. They are leveraging technology to expand their distributionnetwork and deliver round-the-clock recharge options to its MOTS (Mobile on the Spot)subscribers.
  • 29. • Bharti Cellular has also launched a special service, CareTouch, for high-value, corporatecustomers, providing them with instant, single-point access for any assistance they require.Customers can dial 777 and enjoy a slew of services, which includes easier payment of bills,service on priority basis, and value-added services without any additional paper work. BhartiCellular is offering a range of services without going through an interactive voice recorderensuring that they save time. Dedicated ‘CareTouch’ executives are expected to assist customerswith any service on priority basis. Besides the regular proactive reminder calls for bill payment,customers can also call CareTouch for bill payments at free of cost.• Airtel presented MTV Inbox; the first ‘on-air’ SMS based interactive music dedicationshow exclusively for Airtel and Airtel Magic customers. Highly interactive VJ based show withreal-time feedback mechanism. Both brands joined hands to target the high growth youth segment.
  • 30. Bharti’s View on its Branding strategy:-First, brand building efforts in today’s context have to be seen in a more holistic manner.Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts.Unflinching orientation to customer needs is the second key success factor. Customers (be it forindustrial products or consumer goods and services) across the world are more informed and, at thesame time, becoming more individualistic in their needs and far more demanding with the passageof time.Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging customerneeds, and then reacting in “real-time” are essential to attract and retain customer loyalty — a keyelement of creating brand equity in the present situation.Customizing the product (and communication of its benefit) to meet the specific needs of variousconsumer/customer sub-segments is the third element in creating brand appreciation.As far as allocation of time and financial resources are concerned, too many companies mistakenlyallocate a disproportionate amount on mere advertising and promotion. This is not to say thatadvertising and promotion are less relevant. On the contrary, with more choices and higher mediaclutter, businesses need to budget for an increasingly higher spend on their brand promotion butthis has to be undertaken in tandem with enterprise-wide “reengineering” of the businessphilosophy and core design, production, and delivery operations for the product itself.The positive spin to this argument is that by first addressing the fundamentals, the enterprise itselfbecomes more competitive. This can be the beginning of a virtuous cycle wherein brand equitycontinues to increase as the enterprise sustains delivery of an appropriate product or service at anever increasing value.It is, however, crucial to note that in the years to come, not only will the cost of building a regionalor a national (or an international) brand will continue to rise but also the time taken to do so will belonger and will need sustained and focused efforts.
  • 31. Comparison of marketing strategies between Bharti Airtel and Vodafone.
  • 32. Purpose of comparison • The sub main purpose of this report is to compare the marketing Strategies adopted by Bharti Airtel and its rival Vodafone • The comparison shows how both of the companies have been challenging each other to gain market shares.Why comparison with vodafone  Bharti Airtel is the leader in telecommunication sector.  Bharti Airtel holds the lion share of market of communication sector.  However, Vodafone has been giving tough competition to Bharti Airtel.  Vodafone is the second largest player and share holder in Communication sector.  Since its launch Vodafone has been adopting aggressive marketing strategies.
  • 33.  The comparison shows how Hutchison Essar Telecom. Captured 22% market share in one month of its first launch of postpaid subscription in 2002.AD. With a different technology Vodafone creates its own market. Vodafone odafone. Today deals in every business of communication sector. Vodafone making and changing the strategies to capture the market shares
  • 34. Brand positioning by Bharti AirtelMarket segmentation  Geographical segment (metropolitans & cities India)  Demographic segment - middle income groups  People age group of 20 to 28 yearTarget marketing  People who living in cities and towns.  Poor or middle income group people.  Youngsters in big cities.  Businessmen
  • 35. Positioning  Creating brands (Sharukh khan & Sachin Tendulker)  Ads and promotions  Promotion for study of poor childrens.
  • 36. Marketing mix  Price: low price strategy  Place: maximum outlets and service centers  Product: verities available for various groups  Promotion: various schemes for pre-paid and post-paid
  • 37. MARKETING STRATEGIES OF VODAFONE.
  • 38. Vodafone target the rural IndiaThe main targeted customers of Vodafone are from rural India.By offering cheap and light mobile sets Vodafone attracts most of the customers of small villagesand towns.Offering cheap handsetsVodafone offers cheap and free connections to all customers.The cost for these sets was Rs-799-849-1099set and onward.Free support and servicesIn every district and big towns Vodafone opens its service centers to provide better support andservices.Strong logistics and supply chainVodafone has a strong logistic and supply all over India.In every small town the potential customers can easily purchase the Vodafone SIM & Sets.Targeting youngsters in metropolitansVodafone attracts youngsters by offering colorful handset at very low prices.
  • 39. BRAND POSITIONING BY VODAFONE
  • 40. Market segmentation  Geographical segment (rural India)  Demographic segment - middle income groupsTarget marketing  People living in small towns and villages.  Poor and middle income groups.  Youngsters in big cities.  BusinessmenPositioning  Creating brands  Ads and promotionsMarketing mix  Price : low price strategy  Place : maximum outlets and service centers  Product : verities available for various groups
  • 41.  Promotion: various schemes for pre-paid and post-paidServices 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 Vodafone.●mobile services with GSM technology●fixed-line telephone services●Universal Internetworking●VoIP (Voice over Internet Protocol)●Interactive Television●Visual Communication●Broadband Portal
  • 42. ●Telecommuting RESEARCH METHODOLOGYAchieving accuracy in any research requires a deep study regarding the subject. The primeobjective of the project is to compare Airtel with the existing competitor (Vodafone) in the marketand the impact of WLL on Airtel.The research methodology adopted is basically based on primary data via which the most recentand accurate piece of first hand information could be collected. Secondary data has been used tosupport 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 direct interview method, where a face-to-face formal interview was taken. Lastly observation method has been continuous with thequestionnaire method, as one continuously observes the surrounding environment he works in.
  • 43. Type of Research MethodologyEXPLORATORY:TYPE OF RESEARCH CARRIED OUT WAS EXPLORATORY IN NATURE; THEOBJECTIVE OF SUCH RESEARCH IS TO DETERMINE THE APPROXIMATE AREAWHERE THE DRAWBACK OF THE COMPANY LIES AND ALSO TO IDENTIFY THECOURSE OF ACTION TO SOLVE IT. FOR THIS PURPOSE THE INFORMATION PROVEDUSEFUL FOR GIVING RIGHT SUGGESTION TO THE COMPANY.
  • 44. DATA COLLECTION METHODTHERE TWO TYPE OF METHOD OF DATA COLLECTION. COLLECTION. • PRIMARY DATA • SECONDARY DATAPrimary data was collected using the following techniquesQuestionnaire MethodDirect Interview Method andObservation MethodThe main tool used was, the questionnaire method. Further direct interview method, where a face-to-face formal interview was taken. Lastly observation method has been continuous with thequestionnaire method, as one continuously observes the surrounding environment he works in.DATA USED FOR THE RESEARCH WORK WAS PRIMARY IN NATURE. PRIMARYDATA:DATA: PRIMARY DATA IS THAT WHICH IS THE COLLECTED FOR THE FIST TIMEAND THUS HAPPEN TO BE ORIGINATED IN CHARACTER.QUESTIONNAIRE SURVEY: IN THE STUDIES A QUESTIONNAIRE IS PREPARED. THE QUESTIONNAIRECONSISTS OF 15 QUESTIONS.SECONDARY DATA: DATA:
  • 45. SECONDARY DATA REFER TO THE DATA THAT HAS BEEN ALREADYCOLLECTED .THE SECONDARY DATA, WHICH HAS BEEN USED TO CARRY OUT THISSTUDY, ARE AS FOLLOW: • BOOKS, JOURNALS, MAGAZINES, NEWSPAPERS • INDUSTRY REPORTS • COMPANY’S INTERNET SITE • SOMEOTHER RELEVANT STUDY MATERIAL AND WEBSITES..SAMPLE UNIT: - DELHI & NCR. UNIT:THE RESEARCH PROCESS WAS DONE BY INTERACTING WITH NUMBER OFCUSTOMERS DURING THE ACTIVITIES PERFORMED, WHICH INCLUDED, MARKETS,COLD CALLING, CANOPIES, ETC. SAMPLE DESIGN CONSISTS OF RANDOMSAMPLING.SAMPLE SIZE: - 50 PEOPLE SIZE:
  • 46. METHOD OF COLLECTION: -FIELD PROCEDURE FOR GATHERING PRIMARY DATA INCLUDED OBSERVATIONAND INTERVIEW SCHEDULE IN WHICH THE QUESTIONNAIRES WERE FILED BY THEINTERVIEWER.PERSONAL INTERVIEWS THROUGH SELF ADMINISTERED SURVEY WAS DONE TOCOLLECT THE DATA, MARKET RESEARCH WAS UNDERTAKEN, THAT WASACCOMPLISHED BY PERFORMING VARIOUS ACTIVITIES DESIGNED.RESEARCH INSTRUMENT: INSTRUMENT: QUESTIONNAIRETHE QUESTIONNAIRE WAS FORMULATED BY KEEP IN MIND THE FOLLOWINGPOINTS: -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.
  • 47. A brief history of Tele sector in IndiaIn the early 1990s, the Indian government adopted a new economic policy aimed at improvingIndias competitiveness in the global markets and the rapid growth of exports. Key to achievingthese goals was a world-class telecom infrastructure.In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai andKolkata) and 20 circles, which roughly correspond to the states in India. The circles are furtherclassified under "A," "B" and "C," with the "A" circle being the most attractive and "C" being theleast attractive. The regulatory body at that time — the Department of Telecommunications (DOT)— allocated two cellular licenses for each metro and circle. Thirty-four licenses for GSM900cellular services were auctioned to 22 firms in 1995. The first cellular service was provided by,Modi Telstra in Kolkata in August 1995. For the auction, it was stipulated that no firm can win inmore than one metro, three circles or both. The circles of Jammu and Kashmir and Andaman andNicobar had no bidders, while West Bengal and Assam had only one bidder each.In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha,and the president officially announced the TRAI ordinance on 25 January 1997. The governmentdecided to set up TRAI to separate regulatory functions from policy formulation, licensing andtelecom operations. Prior to the creation of TRAI, these functions were the sole responsibility ofthe DOT.High license fees and excessive bids for the cellular licenses put tremendous financial burden onthe operators, diverting funds away from network development and enhancements. As a result, by1999 many operators failed to pay their license fees and were in danger of having their licenseswithdrawn. In March 1999, a new telecom policy was put in place (New Telecom Policy [NTP]1999). Under this new policy, the old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to thegovernment.
  • 48. INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR RESOLUTIONIndian Cellular market immediately after the first round of licensing in 1994-96 was beset byseveral problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some ofthese roadblocks / current position is tabulated below:
  • 49. ROADBLOCKSCURRENT POSITIONHigh license feesMigration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment oflicense fees.Inadequately funded businesses / weak and fragmented promotersBusinesses that have since been adequately funded growing at over 60% per annum, whilebusinesses with weak promoters continuing to languish - spate of acquisitions / mergers, with 4/5major groups emerging in the last one/two years.Regulatory authority not in placeTelecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by alloperators; Deptt of Telecommunications (DOT) restructured, with operations and policy makingroles vested in different bodies.Issues relating to unfavorable interconnect terms for private operators, pass through income, intracircle long distance, spectrum availability and allocation and the like remained unresolved for longperiods.Interconnect terms since rationalized, risks on pass through income to DOT / BHARTI(Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes inmethodology / revenue sharing, intra circle long distance allowed, spectrum availability clearedwith vacation of frequencies for usage by GSM operators.
  • 50. Problems in Financial closures due to:  Licensing tenure of 10 years  Large upfront 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 upfront 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.
  • 51. Foreign ownership / change of partner limitationsForeign ownership norms clarified, and change of partners allowed as a matter of routine allowingease of entry / exit - paves the way for full control of businesses by foreign companies.Inadequate growth of market / subscribersRoadblocks spelt out earlier resulted in low market / subscriber growth, but with correctivemeasures taken, market / subscriber base expected to zoom.
  • 52. 2.2 DEVELOPMENTS IN THE CELLULAR INDUSTRYThe interconnection regime between cellular operators and fixed-line operators is still biasedagainst the former.Despite the recent gains of the cellular industry, not everything is rosy. The cellular penetrationrate is still very low at 0.8 percent in a nation of over one billion people.In recent years, many foreign companies had pulled out from their cellular joint ventures in Indiadue to the difficult operating environment and bureaucracy. In 1999 alone, Swisscom pulled outfrom Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of Thailandand Jasmine International from JT Mobile. In 2000, Telecom Malaysia sold its stake in UshaMartin Telecom, and both Shinawatra of Thailand and Bezeq exited from Fascel. In June 2001,British Telecom exited from Bharti Cellular. Bell South International has also indicated itsintention to pull out from Skycell Communications, and Hong Kong-based Distacom is seeking tosell its stake in Spice Communications. First Pacifics (based in Hong Kong) continuedcommitment to Escotel is uncertain, and the former is reviewing various options.The string of sell-outs notwithstanding, there has been a merger and acquisition wave sweepingacross the Indian cellular industry in recent years. Hong Kong-based Hutchison Whampoa, viaHutchison Telecommunications (HK), acquired major stakes in Sterling Cellular (December1999), Usha Martin Telecom (mid-2000) and Fascel (September 2000). Through a partnershipwith local company, Kotak Mahindra Finance, Hutchison Whampoa practically controls Fasceland Usha Martin Telecom, thus circumventing the 49 percent limit on foreign ownership in Indiancellular operators. Hutchison Whampoa is also the controlling shareholder of Hutchison MaxTelecom. Not to be outdone, Bharti Enterprises — another major cellular player — acquiredcontrol of JT Telecom, which was later renamed Bharti Mobile (December 1999), and SkycellCommunications renamed Bharti Mobinet (August 2000). Bharti also acquired the Punjab licenseof Essar and started operations, giving competition to the lone operator there, SpiceCommunications. Going forward, Bharti is likely to merge all its cellular companies into oneentity.
  • 53. Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in fourmetros and 13 circles. Bharti emerged as the No. 1 bidder with eight new licenses, followed byEscotel with four, Hutchison with three, and Vodafone and Idea cellular with one each. Bharti andHutchison have already commenced operations in all the circles while Idea is set to launch inDelhi. Escotel and Vodafone have not made any headway.BHARTI, the third cellular operator for Delhi and Mumbai, started services in March 2001. BSNL,as the third nationwide cellular operator, launched services in Kolkatta and Bihar in January 2002.This was followed by Tamil Nadu in July 2002. A nationwide launch was scheduled for 2 October2002. However, this has been postponed until after mid October. Once BSNL rolls out its service,most telecom circles will have four cellular operators. There will be tremendous competitivepressure, which will result in lower tariffs. Future rate cuts are expected, which will drive demand,together with falling handset prices and the introduction of prepaid services.In the midst of declining interest in technology stocks, Bharti came out with its long-awaited initialpublic offering (IPO) in January 2002. Leveraging on the success of its cellular service, thecompany got a very good response from the primary market. The total size of the IPO was 185million shares at a floor price of Rs10. The issue was oversubscribed by more than 2.5 times,netting Rs8.3 billion. This will be used to fuel its investment in long-distance, basic and cellularservices.As of October 2002, only BPL Mobile has launched commercial general packet radio service(GPRS) in Mumbai. However, large-scale uptake remains elusive. While both Bharti and Ideahave GPRS-enabled networks, there is caution on their part to launch the service. With hardly anyapplications, the success of GPRS remains a question.In 2005 Hutchison Essar an Indian and hongkong telecommunication alliance was taken over bythe United Kingdom based telecommunication company name Vodafone telecomm services andcomes with the name of Vodafone essar.
  • 54. Virgin mobile comes in Indian Territory with the alliance of TATA telecommunicationMaharashtra in 2008.Mitsubishi a Japanese telecomm services (MTS) company comes in India in 2009 and take overfirst rainbow in Rajasthan with CDMA network criteria.
  • 55. Building visibility and awarenessDeviating from competing on the price platform, cellular operators are actively promoting theirbrand and service portfolio through high-visibility advertising and promotional campaigns.Cellular operators like Bharti, 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 cellular operators with the establishmentof longstanding consumer benefit programs. Orange in Mumbai offers "Orange Holidays" and"Orange Monsoon Offers" at very attractive rates and added benefits like discounts on airfare, foodand beverages, among others. Others offer special privileges in retail outlets, cinemas and musicshops.
  • 56. Enterprise mobile applications — promising revenue streamAll along, customer acquisition and the top line have been the focus. Few operators haveconcentrated on offering differentiated services for businesses. However, as operators realize thatoffering basic voice and Short Message Service (SMS) will get them the numbers but not themargins, some are now seriously looking at the enterprise segment for provisioning superiorservices.Cost-centered solutions like closed user group (CUG), value-adds like unified messaging andinstant alerts are being offered.A variety of mobile applications are finding takers among the enterprise segment. Bharti is in theprocess of introducing a facility to fleet management companies so that they can improve theefficiency of trucks or buses by tracking movement and ensuring higher-use, accurate routeplanning. Premium automakers are also installing a global system for mobile communicationsinside a vehicle to help trace lost vehicles and track down stolen cars.Corporations can choose enhanced services like user-defined call routing to prevent misuse. Callscan be barred, limiting access to select numbers and diverting calls to one single number.Broadcasting services are also quite popular, especially among fast food centers that have a centralnumber. Group SMS is quite popular, especially among enterprises both in the service as well asthe fast-moving consumer goods (FMCG) segment that have a large field force and need toprovide regular updates on inventory status, discount schemes and movement of goods fromwarehouse to the retail outlet. Banks too find bulk SMS service very useful to forwardtransactional alerts to their customers.2.3 FUTURE TRENDS AND DEVELOPMENTThere will be more competition, forcing operators to constantly focus on differentiations tomaintain 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.
  • 57. • 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.• 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.
  • 58. 2.4 REGULATORY ISSUESThe operations of this sector are determined as under the Indian Telegraph Act of 1885. Adocument buried in the sands of time. The next major policy document, which was produced, wasthe National Telecom Policy of 1994, a consequence of the on going process of liberalization.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 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 broad policy guidelines ratherthan a series of action points. Like other policies, it sought to achieve the impossible in finite timelike improve quality of service and its availability, wide coverage (a phone in every village), atreasonable rates, etc. The targets in quantifiable terms were installation of 9.5mn additional lines,
  • 59. 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 nation was divided into 20 circles(akin to a state) for basic and 21 circles for cellular telephony. Mumbai falls in Maharashtra circleand Delhi in itself a circle.The basic premise on which competition has been introduced is that every circle will have oneprivate operator apart from DoT/ BHARTI for basic and two operators for cellular. DoT/ BHARTIhave the option to become the third cellular operator in future.Government did not achieve most of its stated targets. The basic theme, which was broadening thereach of telephony in India, has not been met. Even liberalization policies were not implementedproperly. The regulator TRAI was set up after delays and confusion and even after its creation,DoT continued to fight with it in courts. It was also affected by the resource crunch, and financingoptions like BOT, BOOT and BOLT was not used at all. The major policy direction it showed wasto allow private sector entry in both basic and value added services. The intention, though noblefailed to achieve its goals because of improper implementation, the economic costs are still borneby the end user.The telecom sector has witnessed some fundamental structural and institutional reforms in the pastdecade. Telecom equipment manufacturing was completely deregulated in 1991. Value-addedservices (including cellular services) were thrown open to private sector participation in 1992.Basic services were opened to private participation in 1994 by dividing the country into 21telecom Circles and 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 InternetService Policy Providers (ISPs) was announced in 1998 allowing independent service providers toenter the sector ending the earlier monopoly of VSNL. Reorganization of DOT, separatingpolicymaking function and service provision and corporatization of DOTs operational network aretwo major institutional reforms, which need to be implemented.
  • 60. Scope of the study# To conduct this research the target population was the mobile users, Who are using GSMtechnology.# Targeted geographic area of Delhi/ NCR. Sample size of 50 persons was taken.# To these 50 people a questionnaire was given, the questionnaire was a combination of both openended and closed ended questions.# The date during which questionnaires were filled.# Some dealers were also interviewed to know their prospective. Interviews with the managers ofGSM service providers were also conducted.# Finally the collected data and information was analyzed and compiled to arrive at the conclusionand recommendations given.Sources of secondary dataUsed to obtain information on, Bharti’s history, current issues, policies, procedures etc, whereverrequired.# Internet# Magazines# Newspapers# Journals# Bharti Circulars Store# Bharti News Letters# Vodafone Store# Vodafone Ministore
  • 61. Data analysis AndInterpretation
  • 62. Subscriber numbers in (mn) held by Vodafone and Airtel June-05 Sep-06 Dec-07 Mar-08 Dec-08 Mar-09Airtel 3.19 4.62 5.50 6.54 10.98 14.07Vodafone 1.82 4.19 6.24 7.26 10.45 12.99Source TRAI:
  • 63. MARKET PLAYERS IN TELE COMMUNICATION Operator Market share Market share Aug05 Aug09 Bharti Airtel 19.06 22.49 Vodafone 21.81 16.96 Vodafonecomm 17.03 16.01 Idea Cellular 10.45 8.49 25 20 15 B rti Airtel ha vodafone 10 R nce infoc m elia om IdeaCellular 5 0 Ma et sha Aug 5 rk re 0 Ma et sha Aug 9 rk re 0
  • 64. FINDINGS AND ANALYSISAge Group GraphAs we can see from the above graph, the people who are in the age group of 21-28 years are theones who are the maximum users of mobile phones. This segment is the one which givesmaximum business to the mobile operators. This segment constitutes the young executives andother office going people. They are 65% of the total people who were interviewed. The next agegroup are the
  • 65. people who are 28-35 years old. They are 20% of the total. They are those who are at home orhave small business units etc. And the next age group is the youngest generation who are 15-21years old. They are school and college going students and carry mobile phones to flaunt. They are15% of the total interviewed people.Occupation Graph OCCUPATION 10% 15% 20% 55% STUDENTS EXECUTIVES HOUSEHOLDS OTHERSAs the above graph shows that 55% of the total people interviewed are working. So, these peopleare the ones who are the maximum users of mobile phones. They are the young executives,managers, Tele - callers etc. who require mobile for their official purposes. The next category isthe households, who are either housewife, small units which operate from their homes etc. Theyare 20% of the whole. The next segment is the students. They are 15% of the whole. And 10% ofthe whole is categories who are the professionals.
  • 66. Service Provider GraphThese are the total market share of mobile user or people captured by the mobile providercompany. There two major company in mobile phone service sector Vodafone and Airtel whorespectively hold the market share with other company as 17% and 20% of total market usersegment of mobile customer.
  • 67. 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 Airtel seems poor. 60% of the peopleare dissatisfied with the customer services provided by Airtel. They are the ones who have themaximum share in the market but they are lagging behind in the customer services. 10% of thepeople were fully dissatisfied with the customer services of Airtel. This could leave an impact onthe mind of the consumer. He can even switch over his brand. 20% of the people seemed partiallysatisfied with the customer services and only 10% seem to be fully satisfied with Airtel’s customerservices, which is a very small amount.
  • 68. Type Of Card GraphCash cards seemed quite popular among the people interviewed. 85% of the total mobile userswere having cash card connections. This means that the cash cards should be easily and readilyavailable in the local markets. Airtel should make sure that Magic is available in each and everynook and corner of the market. 15% of the people were having sim connections which is theregular bill.
  • 69. Monthly expense graphPeople on an average spend RS 500 per month as their mobile phone expense. 64% people spend Monthly Expense 12% 24% Rs 600 Rs 450 Rs 200 64%this amount. 24% people spend RS 300 per month as their monthly mobile expense. And theremaining 12% had an expense more than RS 1000, they could the ones having sim connections orhaving cash cards and having a lot of business calls on their mobiles.
  • 70. Awareness About WLL GraphWLL seemed to be a new word for many of the people. 45% of the people were not at all aware ofsuch a technology. So, in order to get the answer for this question they were first explained theconcept. Only, 55% people knew what WLL is all about.
  • 71. Awareness of WLL Players Graph 80% 70% 60% 50% Vodafone 40% Airtel 30% 20% 10% 0%Vodafone was the brand which was popular amongst the interviewed people. As Vodafone haddone so much advertising and has it banners and hoarding spread all over Delhi. So, this could beone the reasons of its popularity. Tata was hardly a known brand in this new field. Possibly,because of less promotions done by them as compared to Vodafone.On the basis of analysis of the questionnaire I have found that the maximum no. of people whouse mobile phones is in the age group of 20 to 28. Who are the young executives and other officegoers?They spend a maximum of RS 500 as their mobile expense.There is more no. of prepared cards than post paid cards. The mobile users want to spend moneyside by side than to spend money at the end of the month on a big bill.Now when I compared Airtel with its competitor from the point of view of the consumer I foundthat on the basis of Tariff plan, value added services and billing accuracy Airtel is at par or ahead
  • 72. of its competitor but in the case of customer care and availability they lag behind therecompetitors. As, Airtel has a hold in the market because it has the maximum no. of connections, soit must improve upon it customer services. As far as WLL is concerned people are aware about itbut not many people are aware about Tata. They only know more about Vodafone. People at thispoint of time are not interested to switch over from GSM to WLL
  • 73. Customer Response towards Questionnaire
  • 74. Which Brand you, prefer most? Airtel Vodafone Reliance TATA Idea
  • 75. How long you have been using this Product?  0-2 Years  2-5 Years  5-10 Years  More than 10 years Consumers response shown in chart for usage
  • 76. Are you using other product with Airtel?  Yes  No 33% YES NO 67%Here are the customer responses about the use of the Airtel product and otherproduct rather than Airtel.in this segment of survey 67 % of customer are aspire with Airtel and 33 % showninterest in other telecom products in urban areas.
  • 77. Do you collect any information search before makingpurchase? 70% 66% 60% 50% 40% 34% information 30% search 20% 10% 0% YES NO
  • 78. 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.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.
  • 79. 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 would also increasescompany’s production and distribution cost.
  • 80. LIMITATIONSNo project is without limitations and it becomes essential to figure out the various constraints thatwe underwent during the study. The following points in this direction would add to our totaldeliberations:-1. During the study, on many occasions the respondent groups gave us a cold shoulder.2. The respondents from whom primary data was gathered any times displayed completeignorance about the complete branded range, which was being studied.3. Lack of time is the basic limitation in the project.4. Some retailers/whole sellers refuse to cooperate with the queries.5. Some retailers/wholesalers gave biased or incomplete information regarding the study.6. Money played a vital factor in the whole project duration.7. Lack of proper information and experience due to short period of time.8. Some retailers did not answer all the questions or do not have time to answer.
  • 81. SUGGESTIONSFollowing are the few suggestions to AIRTEL for improving the market share and image of theproducts concerned.1. PRODUCT*Modification must be brought about in AIRTEL, in terms of quality. Its demand should beincreased.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 releasedin different Medias to create brand awareness.*Free samples should be distributed among the prospects. Sales promotion tools like gifts, contestsand coupons must be given to retailers as well as customers and prospects.* Catalogues should be distributed among customers.4. PRICE* Price should be as competitive as other company maintains* Distribution of new connection should be in reach of customer pocket
  • 82. CONCLUSION After analyzing the findings of the research, I can conclude that Airtel lagged behind itscompetitors as far as customer service and availability is concerned. The maximum no. of peoplewho use the mobile is in the age group of 20 to 28. Cash cards are the most popular type of mobileconnections, as they are consumer friendly and recharging the connection is not a problem.Maximum no. of people spends RS 500 on their connections. As Airtel is the only company havingthe maximum no of mobile connections so it must seriously look into the loop holes of the existingcustomer service department.As we know that now Airtel has already launched its product with logo “’ Aisi azaadi aur kahan”’has already became popular in market. So we can say that in spite of so many competitors in themarket Airtel is having a good position just because every time, it tries its best to understand theneed of its important customers.From the comparison and deep analysis of every aspect of business of both the companies we canconclude that bharti Airtel has to more work in every field of communication business.It is the time not only to survive but to sustain in the market for a long time.For this Airtel has to work on its all marketing strategies, marketing, promotion, brand image.etc.Airtel has to take Vodafone. Very seriously and update its own strategies from time to time andwhen the need arises.With aggressive marketing strategies Airtel has to target rural India as 70% of population of Indialives in these areas.The other segment may be costumers of all age groups. RECOMMENDATIONS
  • 83. I have made following recommendation to the company after doing the summer training there: • The company should modify its credit policy as they only target the cash paying customers who are not easy to trace. • The company should emphasis more on the quality of Pharmaceuticals Products it was mostly claimed by the exporters that their receipts from company doesn’t matches with the sample’s quality shown before giving orders. • The company should make its marketing strategy flexible enough in order to face competition. • The company should keep an eye on the proper delivery of the goods to exporter on time, as it has been recommended by exporters to make the delivery on time. • The company rate policy must be flexible enough to catch new customers because if company offers lower price to a new customer then he may continue buy the goods and can be a permanent customer for the company. • The company should offers such rate in the market so that it may able to catch a bigger market share and it should be able to compete with the local traders and commission agents while having a brand name.The company should take the opinion of exporters from time to time to know what problems theyare facing from the company’s side. And if any change they require in present supplyingcondition?
  • 84. BIBLIOGRAPHYIn this project report, while finalizing and for analyzing quality problem in details the followingBooks, Magazines/Journals and Web Sites have been referred. All the material detailed belowprovides effective help and a guiding layout while designing this text report.Books :Principles of Marketing –Philip Kotler & Kevin keller edi. 12Market Research – D.D. SharmaResearch Methodology – C.R. KothariWebsites: www.Airtelworld.com www.google.com www.india.com www.Vodafone.inhttp://www.blonnet.com/2004/06/26/stories/2004062602180700.htm, Mumbai, June 25, 2004.com/companies/companies_r/Vodafone_infocom/20031104_stop-roaming.htm, 4 November 2003 Domain, Missed Call, at http://www.domainb
  • 85. Magazines:Airtel (2 July to 10 July 2004)Airtel India page of HT paper (Thursday 1December 2004)Cowards India (26 December to 4 Jan. 2004)
  • 86. QUESTIONNAIREDear Sir/Madam, I Umesh Garg, student of MBA of Bhawani Shankar Anangpuria institute oftechnology & management, Faridabad. I am doing my project on “Comparative analysis ofmarketing strategy of Vodafone and Airtel”. Please give your precious time for filling thesedetails.Q.1 Name those companies which provide telecom services now a days?  Airtel  Vodafone  Reliance  TATA  IdeaQ.2 which mobile company services you are using now a days?  Airtel  Vodafone  Reliance  TATA  IdeaQ. 3 Among them, which Brand you, prefer most?  Airtel  Vodafone  Reliance  TATA  IdeaQ.2 How long you have been using this Product?
  • 87.  0-2 Years  2-5 Years  5-10 Years  More than 10 yearsQ.3 Are you using other product instead of Airtel?  Yes  NoQ.5 how would you rate the experience with Brand? Excellent Good Average Below Average  Airtel  Vodafone  Reliance
  • 88. Q.6 Do you collect any information search before making purchase?  Yes  NoQ.7 If yes, which sources are used?  Magazines  Dealers  Sales Executives  Operators reference  Pamphlets and catalogue  Reference from friends and relatives  Any otherQ.8 What are the features you look for in a product before making purchase decision? Givepreferences (1-Highest, 6- least)  Brand credibility  Price and Discount  After sales services and parts, network  Value for money  Vehicle performance  Add on features or ergonomics of design
  • 89. Q.9. Which of these marketing / sales schemes attracts you while purchasing any connection?  Good Network  Discount scheme  Service package  Any otherQ.10 If you have to purchase a new connection or product in near future, which Brand will you go for and why? _________________________________________________ _________________________________________________ _________________________________________________ Q.11 Are you aware of various promotional activities being run by Airtel, if yes then how? Are you satisfied with these promotional activities? Very Satisfied Somewhat Not Satisfied Satisfied satisfied  Customer Care  By Ad Films  By Camp  24 hrs call center services
  • 90. Q.12 How would you rate Airtel performance as your expectation on 5 points scale (5 Highest?) 1 2 3 4 5  After Sale service  Maintenance  Product as per expectationQ.13 What are you suggestions for improving the product quality, service availability and parts availability? _______________________________________________________________________________ _______________________________________________________________________________ ______________________________________