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36985685 airtel

  3. 3. ACKNOWLEDGEMENT ACKNOWLEDGEMENTA good project work requires sound knowledge of the subject concerned and skilled tomake proper use of this knowledge .i am very grateful to all who equipped us with theright frame of mind to make us still more receptive to such knowledge and skill.It is a proud privilege for me to express profound sense of Gratitude to my revered 3
  4. 4. MR M.V KULKARNI (Faculty Guide) and I am grateful indebted to MR DINESHAWASTHI , my project external guide for availing me of his competent guidance underwhich I was able to accomplish my project work successfully.I am also thankful to Mr. PRADEEP NAIR who helped me intellectually inpreparation of this project. AJITH SUGATHAN 4
  5. 5. EXECUTIVE SUMMURY Executive SummaryThe project was carried out for Bharti Airtel Limited, AGRA which is one of theleading Telecom company to conduct a Market research and Sales. 5
  6. 6. The project was undertaken during two months winter training at Airtel Limited in mycapacity as a management student with marketing specialization.The job assigned to me for the project was to do market Analysis and sales activities .The entitled project was having many primary and secondary objectives to achieve theobjectives are as follows -------PRIMARY OBJECTIVES :-  To identify the market standing of the airtel limited with its competitive telecom companies.  To study and analyze the perception status and the movement of the airtel services along with its competitors .SECONDARY OBJECTIVES :-  Find out the potential market and also prefer to write for competitive.  Find out the potential customers, who can be very beneficial for the company.  To make aware the customer about company’s services and to educate them and aware about the different benefits .  To have a healthy conversation with custumer to build a good relationship, to find out the problem related with the service of the company.  To motivate the customer towards company’s services and to collect the meaningful suggestion for company betterment. 6
  7. 7.  To formulate the competitive marketing strategies to have better approach to the customer. To study the present, past and response of customer towards the services of airtel. 7
  8. 8. OBJECTIVE OF THE STUDY OBJECTIVE OF THE STUDYTo study the consumer trends in telecommunication sector.To study consumer decision-making & preferences. 8
  9. 9. To study marketing strategies adopted by Airtel.To study the level of customer satisfaction in Airtel.To study the market potential.To study customer purchase decision behaviour.To understand the needs of different consumer segments.Comparative study of different mobile companies. 9
  11. 11. Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The BhartiGroup, has a diverse business portfolio and has created global brands in thetelecommunication sector. Bharti has recently forayed into retail business as BhartiRetail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It hassuccessfully launched an international venture with EL Rothschild Group to exportfresh agri products exclusively to markets in Europe and USA and has launched BhartiAXA Life Insurance Company Ltd under a joint venture with AXA, world leader infinancial protection and wealth management.Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the firstprivate telecom services provider with a footprint in all the 23 telecom circles. BhartiAirtel since its inception has been at the forefront of technology and has steered thecourse of the telecom sector in the country with its world class products and services.The businesses at Bharti Airtel have been structured into three individual strategicbusiness units (SBU’s) - Mobile Services, Airtel Telemedia Services & EnterpriseServices. The mobile business provides mobile & fixed wireless services using GSMtechnology across 23 telecom circles while the Airtel Telemedia Services businessoffers broadband & telephone services in 95 cities. The Enterprise services provideend-to-end telecom solutions to corporate customers and national & international longdistance services to carriers. All these services are provided under the Airtel brand 11
  12. 12. OUR BRAND Airtel was born free, a force unleashed into the market with a relentless andunwavering determination to succeed. A spirit charged with energy, creativity and ateam driven “to seize the day” with an ambition to become the most globally admiredtelecom service. Airtel, in just ten years of operations, rose to the pinnacle ofachievement.As Indias leading telecommunications company Airtel brand has played the role as amajor catalyst in Indias reforms, contributing to its economic resurgence.Today we touch peoples lives with our Mobile services, Telemedia services, toconnecting Indias leading 1000+ corporates. We also connect Indians living in USA,UK and Canada with our callhome service. OUR VISION & PROMISESBy 2010 Airtel will be the most admired brand in India:Loved by more customersTargeted by top talentBenchmarked by more businesses“We at Airtel always think in fresh and innovative ways about the needs of ourcustomers and how we want them to feel. We deliver what we promise and go out ofour way to delight the customer with a little bit more” 12
  13. 13. Corporate Responsibility at Bharti AirtelAt Bharti, CSR is a way of life. Each department and employee strives to be sensitive tothe stakeholders and environment within their work context. Bharti encouragesemployees to take decisions and design business-linked processes that are sensitive tocommunities and environment.Corporate Social Responsibility (CSR) in Bharti encompasses much more than onlysocial outreach programs. It is an integral part of the way Bharti conducts its business.The essence of Bharti’s commitment to Corporate Social Responsibility is embedded inthe ‘Corporate Values’, which stem from its deepest held beliefs. These Values are:1. To be responsive to the needs of our customers2. To trust and respect our employees3. To continuously improve our services – innovatively and expeditiously4. To be transparent and sensitive in our dealings with all stakeholders We encourage our employees to take decisions and design business processes, keepingin mind the following: • Ethics, fairness and being correct • Meeting and going beyond compliances and legal requirements • Showing respect and sensitivity towards stakeholders and communities, and Nurturing the environmentWe practice our CSR beliefs and commitments through a three-pronged approach: • Engaging with stakeholders • Ensuring stakeholder sensitive policies and practices • Undertaking programs for our employees, community and environment 13
  14. 14. EMPLOYEESWe believe that one of the most important drivers of growth and success for anyorganization is its people. At Bharti Airtel, our ‘Mantra’ for employee delight focuseson 5 Ps- People, Pride, Passion, Processes and Performance.Bharti Airtel has been recognized among the Best Employers in the Country for twosuccessive years – being 14th in 2003 & jumping ahead of several other largeconglomerates to an enviable position of the 2nd Best Employer in the Country in 2004.This is a clear demonstration & acknowledgement of the robust, progressive, people aswell as business aligned Human Resource practices, which the organization hasdeveloped and implemented remarkably in a very short span of time.Bharti Airtel follows an “open door policy” to approach the management, which helpsresolve issues with mutual agreements. We encourage people to stand up against anyunfair treatment for which we have the Office of the Ombudsman, where employeescan raise any issues regarding business and workplace conduct. Bharti ensurestransparency through the various communication policies, strategies and plans. .Regular Employee Communication Forums provides a platform for the employees toraise issues that require resolution.Our leaders strongly believe in facilitating and initiating activities that help employeesmanage their health and well-being. Our focus always remains to redefine leadership;we develop leaders who enable performance and inspire their people to unleash theirpotential. Our people orientation reflects in our vision of being “targeted by top talent”,and a key aspect of our business focus “building a best-in-class leadership team thatnurtures talent at every level.’’Employee friendly HR policies have been put in place, which amply reflect theorganization’s concern for its people. Some typical examples of these policies andpractices include a family-day at office, half day leave for birthdays, gifts foranniversaries, compulsory 10 days off, festival celebration with family, no officialmeetings on weekends, five day weeks, concierge services, call centre engagementprograms etc. These “care” policies and practices are applied across the organizationallevels without any discrimination.From self-management workshops to aerobics sessions, yoga classes to provision ofrelaxation/meditation rooms, we ensure that every employee keeps a check on his/herfitness. Tie-ups with leading health service organizations enable our employees toundertake periodical health check-ups depending upon their age. This facility is alsoextended to employee family members at discounted rates. The company providesFlexible Group Mediclaim insurance to all employees, covering all kinds of illnesses,accidents and hospital coverage for serious ailments. Apart from these specific 14
  15. 15. engagements, we regularly organize health check up camps, eye check-up camps andstress management sessions. Some of our offices have opened gymnasiums/fitnessfacilities to ensure that the fitness fanatics do not have to worry about time constraintsto remain fit. At many of our locations, we have hired psychologists who undertakepersonal counselling sessions for employees.Bharti Airtel offers a flexible compensation structure to its employees wherein theemployees have the flexibility to structure their fixed component of their compensationaccording to their requirements within the ambit of legislation.Our Performance Linked Incentive (PLI) schemes are linked with the variablecomponent of our compensation structure. This component is linked to both theindividual performance against his/ her set KRAs (Key Result Areas) and the overallperformance of the business entity that an employee belongs to.Our leaders and managers understand the need to bring clarity to employees about howtheir roles, goals and actions align the realization of organization’s vision and goals.The mechanisms like Performance Management System (PMS) and TalentManagement Process (TMP) are the key sources of identifying the training needs of theemployees and check to competency levels for promotion. Environment, Health and SafetyAt Bharti we believe in the philosophy to refuse, reduce, reuse and recycle. Thecompany has taken many initiatives in this regard, both within the offices for thebenefit of our employees; and for outside world for the convenience of the peopleFew examples of the initiatives taken are mentioned below:(a) Most of the new Airtel buildings recycle waste water for sanitary and cooling ofequipment purposes e.g. DG sets and AC systems. These buildings also have rain waterharvesting systems for ground water replenishment where appropriate.(b) All Airtel offices have energy efficient light fittings and DG sets. We also ensureautomation that enables energy savings in our buildings. Building Management System(BMS) – Intelligent Building concept is being followed in all the new Airtel buildingand campuses that are coming up. The BMS controls The Heating, Ventilation and Air-conditioning (HVAC) system,, electricity load management, water management,parking management, security and safety systems to ensure an efficiently run buildingon optimal resources.(c) New buildings also incorporate the concept of and Energy Wheel which optimisesenergy efficiency in buildings. The AC system in our buildings adds a certain amountof fresh air periodically; In the process of adding this fresh air the cool air within the 15
  16. 16. building vents out which may result into higher usage of energy to bring the cooling/temperature back. The Energy Wheel concept ensures that as we bring the fresh air in itis pre-cooled thereby optimizing energy efficiency.(d) Air quality is checked periodically in all Bharti Airtel offices, and based on theresults, duct cleaning, carpet cleaning, chair and sofa shampooing is undertaken. Waterquality is also monitored in cooling towers for DG sets and Air Conditioner systems sothat water born diseases such as legionella, etc. are avoided.(e) Use of air curtains on major office exits and double glazing also results insignificant energy saving.(f)At the time of oil change in DG sets etc. the discarded oil for disposal is only sent tocompanies/ vendors approved by the Central Pollution Control Board (CPCB) forproper disposal as per CPCB approved processes. All Bharti Airtel offices follow thebasic requirements specified by the Pollution Control Board) and ensure statutorycompliance.(g) All Bharti Airtel offices have fire alarm systems. Periodic fire drills are carried outin Bharti Airtel offices as a practice. All Airtel offices are provided with First Aidboxes and have identified people as First Aid specialists. Community InitiativesCorporate Social Responsibility is embedded in, and built upon, the stated ‘values’ ofBharti – the institution. These values guide all our activities and each employee isencouraged to take decisions and design business-linked processes that are sensitive tocommunities and environment.“We have an obligation to fulfill to society and the communities in which we operate,and help improve the quality of life for everyone, today and in the future.”Based on the basic guidelines and direction provided in the Code of Conduct, Bhartihas undertaken many community programs.Bharti’s contribution to society is structured through two channels, namely,(a) Bharti’s Corporate Social Responsibility (CSR) Initiatives, including initiativesundertaken by way of employee mobilization as well as running environment relatedprograms; and(b) Bharti Foundation, a separate vehicle established in 2000 to lead the CSR agenda ofBharti Group of Companies 16
  17. 17. BUSINESS DIVISIONSBharti Airtel offers GSM mobile services in all the 23-telecom circles of India and isthe largest mobile service provider in the country, based on the number of customers.The group offers high speed broadband internet with a best in class network. WithLandline services in 94 cities we help you stay in touch with your friends & family andthe world.The group focuses on delivering telecommunications services as an integrated offeringincluding mobile, broadband & telephone, national and international long distance anddata connectivity services to corporate, small and medium scale enterprises 17
  18. 18. The Company compliments its mobile and broadband & telephone services withnational and international long distance services. It has over 35,016 route kilometers ofoptic fibre on its national long distance network. For international connectivity to east,it has a submarine cable landing station at. For international connectivity to the west,the Company is a member of the South East Asia-Middle East-Western Europe – 4(SEA-ME-WE-4) consortium along with 15 other global telecom operators. 18
  19. 19. Broadband & InternetBroadband Advantage Now experience the internet in a new way with Airtel Broadband.It is powered by DSL technology which gives you blazing-fast; secure Internet accessas soon as you switch on your computer . We give you the power of limitless discovery on Internet – from shopping tobanking, paying bills to making new friends and not to mention endless fun & learningfor children.Switch today to airtel Broadband! Why wait to connectWith Airtel Broadband, the internet is always ON, always available! No more waitingfor dial-up to connect. You are ready to use the internet as soon as you switch on yourcomputer.Power SurfingWith speed of up to 2Mbps, feel the excitement of doing more on Internet. Shop,download MP3, exchange heavy files and chat at an enviable speed, all thanks to anextensive Broadband Services infrastructure. No more disconnections in the middle ofdownload.Surf while you talk!No more missed calls or blocked telephone lines while using the internet. AirtelBroadband Services connection does not block existing telephone lines and allows onefamily member to use the phone while another member surfs the net. No more missedcalls and no more fight! 19
  20. 20. Robust installationOur world class infrastructure & end-to-end digital network of underground coppercable lines ensure an extremely robust connection that eliminates the risk of damage.Superior server technology and a dedicated port provide total security to data storageand information exchange through the Internet.24x7 customer supportWe are just an email or a phone call away. Round-the-clock, 365 days a year! To helpus serve you even better, we look forward to your feedback. Your suggestions forimprovement, brickbats and even an occasional bouquet, will only help us realize ourpromise! Click here for the Airtel Broadband Services Helpline number in your City. Hot and HappeningSpeed On DemandWith our innovative service, you can enjoy a dedicated speed of up to2 Mbps without having to change your subscription plan. What’s more, you only payfor what you use.With a view to simplify the process for our customers, we have set up a fully automatedonline process that delivers bandwidth upgradation as and when required.Key benefits of Speed On Demand • Upgrade to higher bandwidth instantly • No need to change your tariff plan • Pay only as much as you useEntertainment On AirtelChoose your style. Now even for your homepage. 20
  21. 21. Unlimited games on demand @ Rs.99 per month. Experience Wiz kid on Airtel..Just log-in with your Airtel Broadband ID and unleash great music at great prices.Airtel brings you a wide range of high-quality and exciting games in alliance with Indiagames. Just login with your Airtel Broadband ID and start playing.Reach AirtelOur aim is to help you as quickly and as efficiently as possible at first point of contact.In this section youll find an opportunity to email us directly, useful telephone numbers,quick links to store locations, payment centers and much more. • Customer SupportAs an Airtel customer you have the convenience to access our 24-hr customer servicenumber from any part of India, from your Airtel phone. Whats more, you can access usfrom your landline too. • Payment CentresChoose from a host of convenient payment options only with Airtel. Walk into anyAirtel relationship centre and make your payment by cash or credit card. Drop a chequeat any of our conveniently located cheque drop boxes. 21
  22. 22. • Airtel Relationship CentresNeed to get yourself a new Airtel connection, subscribe to any of our value addedservices and get more information on them, pay your bill or get a new handset? Visitthe nearest Airtel Relationship Centre.TechnologyAirtel Broadband is powered by DSL technologyDSL provides blazing-fast, secure Internet access and can be delivered to both homesand to businesses. Delivered right through a regular telephone line, data rates can varyfrom 128Kb to 8Mb per second depending on the type and cost of the service.Instant AccessDigital Subscriber Line (DSL) technology provides instant Internet and network accessat speeds up to 50 times faster than a 28.8Kbps modem on a standard analogue phoneline. There are no dial-up delays, no busy signals. What used to take minutes or hoursto download, will now take just seconds or minutes.Experience MultimediaWith DSL Internet Service you can download graphics-heavy files, large documents,software, photos, email attachments, and more, instantly. Its perfect for real-timeinteractive multimedia, broadcast quality video, distance learning, and video-on-demand. And because DSL Internet Service sends data and voice over the same line,you can talk on the phone while you are online.Never Wait!Its also a service that you dont have to dial into. Just turn on your PC, open a browser,and youre ready to surf. (No more hearing those annoying beeps and tones, thenwaiting to be connected. Youre always connected whenever you wish to!). BeyondInternet access, DSL also has the ability to carry additional phone lines andentertainment services using the same pair of wires.High-speed Internet access through DSL, changes your Internet experience perceptibly. 22
  23. 23. ServicesVideo Surveillance Solutions• Control your business. 24x7Now you can observe your office, warehouse, shop and staff from your PC fromanywhere and at all times, with the Video Surveillance Solution.• BusinessLive@24X7 With BusinessLive@24X7, its like being there! 24 hours a day, 365 days a year. BusinessLive@24X7 is a PC based multi-channel system that utilises the most advanced digital video compression technologies to bring you the highest still picture quality and video clarity. It is a custom-made, remote, digital Video Surveillance Solution, that will let you keep an eye from your office or home on what is going on at a specific location. It ensures safety and peace of mind along with quality service, technical warranty and maintenance.Unmatched features empowering businesses• Virtual ControlEven when you are away from your premises, you can observe, record and be incontrol. BusinessLive@24X7 makes multiple viewing possible. While you aretravelling, you can see your business run smoothly from a distance• 16 Videos on One ScreenClick on different display mode icons and monitor live! Activate the built-inswitcher and have different cameras display sequentially, one after the other, as peryour time setting, in single or multiple windows. Monitor multiple sites withmultiple cameras, simultaneously.• Digital Video PlaybackUse your PC like a digital video player to playback the recorded video or browseframe by frame. And just in case you want to review something before therecording is over, you can! Your recording will continue, virtually uninterrupted.You can playback one camera at a time, or even multiple cameras (up to 4).• Secure and Reliable 23
  24. 24. BusinessLive@24X7 is completely network ready and you can set up all levels of passwords and access within the network or use the two-level, multiple-user password protection • Give yourself the advantage You will be delighted to know that adding these huge benefits to your business does not mean huge costs. All you need is our Video Surveillance Solution that comes at a surprisingly low investment. In TouchCreate and share your precious moments with your loved ones with In Touch. In Touchis more fun and personal than email or voicemail. It’s a great way to reach out to yourloved ones who are far away.What is ‘In Touch’?In Touch is a great way to stay connected. It is an easy-to-use personal communicationsservice that connects you with your friends and family, using a PC or a TV and aBroadband (high speed) Internet connection.What can I do with ‘In Touch’? • Video Message & Audio Message After years of using e-mail, finally, here’s a really unique way to communicate with friends, family & even colleagues using ‘In Touch services’. Our service allows you to create, review, send & receive video messages. It also allows you to create, review, send & receive Audio messages • Video Call & Voice Call Enjoy full motion video and voice telephony with a service, that’s as simple to use as your phone. Our service allows you to make or receive Video/Voice Calls to In Touch users quickly and easily. • Video Postcard TM Heres a really unique way to communicate with family, friends, business associates & colleagues, even if theyre not In Touch subscribers. Our service allows you to create, review and send a Video Post Card TM to any valid e-mail Id. They get an e-mail that links to your Video Post Card TM recorded in full motion video and sound. 24
  25. 25. • Security An important feature of the In Touch system is the security of your communications. Our secure network ensures that your profile information remains completely confidential. In Touch will not publish your name in any directory (online or print). You can receive messages or calls from family and friends only. In Touch does not offer the option to ‘find-a-friend’ (common among many community solutions) as this has proven to be a source of abuse and spam.Requirementyou must be a registered member to use this service. TariffsExperience a Broadband life and discover endless possibilities. Download yourfavourite songs, play exclusive games, send or receive large documents photos as emailattachments on a lightening fast, secure & reliable Internet connection. With Airtel’shigh speed Broadband, enjoy superior way to access rich information of internet withenough fun & learning for everyone. To find out the Airtel broadband & internet tariffsavailable in your city, please select your location from the drop-down. Broadbandinternet definition as per the TRAI -Always on connection with minimum downloadspeed of 256 kbps. 25
  26. 26. WifiWhat is Wifi ?Wife is a wireless technology brand by the Wifi Alliance that gives you a host offantastic advantages ranging from reliability to security. The simple installationprocedure gives you access to unsurpassed performance instantly. Commonapplications for Wife include Internet and VoIP phone access, gaming, and networkconnectivity for consumer electronics such as televisions, DVD players, and digitalcameras. Just like cell phones, televisions and radios, the wireless network also usesradio waves.Wireless technology is clearly the future of networking. 26
  27. 27. Current Situation In MarketHighlights for Second Quarter ended September 30, 2008 • Overall customer base at 7.99 crore. • Highest ever-net addition of 82.11 lakh customers in a single quarter. • Market leader with a market share of all India wireless subscribers at 24.6%. • Total Revenues of Rs. 9,020 crore (up 42% Y-o-Y). • EBITDA of Rs. 3,699 crore (up 37% Y-o-Y). • Cash Profit of Rs. 3,125 crore (up 20% Y-o-Y). • Net Income of Rs. 2,046 crore (up 27% Y-o-Y).New Delhi, India, October 31, 2008: Bharti Airtel Limited (“Bharti Airtel” or “thecompany”) today announced its audited US GAAP results for the second quarter andhalf year ended September 30, 2008. It has once again maintained its strong growthmomentum.The consolidated total revenues for the quarter ended September 30, 2008 of Rs.9,020crore grew by 42% and EBITDA of Rs. 3,699 crore grew by 37% on a year on yearbasis. The net income for the quarter ended September 30, 2008 was Rs. 2,046 crore, agrowth of 27% over last year.Bharti had 7.99 Cr subscribers, as on September 30, 2008, an increase in the totalsubscriber base of 57% over the corresponding period last year and maintained itsleadership position through an improved market share of all India wireless subscribersat 24.6% as on September 30, 2008, up from 23.4% corresponding to the same periodof last year.Commenting on the results and performance, Mr. Sunil Bharti Mittal, Chairman &Managing Director, Bharti Airtel Limited, said “With record customer additionsevery month, Airtel continues to consolidate its leadership position in the market. Thesuccessful launch of DTH service has provided another opportunity to the brand tostrengthen it’s connect with the customers, while generating a new revenue stream.” 27
  28. 28. Bharti Airtel Limited - Summary of Consolidated Financial Statements -represents Consolidated Statement of Income as per United States Generally AcceptedAccounting Principles (US GAAP)(A mount in Rs. Cr, expert ratios) Quarter EndedParticulars Sept. 2008 Sept. 2007 Y-o-Y Growth Audited AuditedTotal revenues 9,020 3,337 42%EBITDA 3,699 2,710 37%Cash profit from operations 3,125 2,597 20%Income before income taxes 1,972 1,747 13%Net income 2,046 1,614 27%Operating Highlights(Figures in nos, except ratios) Sept. 30, June 30, Q-on-Q Sept. 30, Y-on-YParticulars Unit 2008 2008 Growth 2007 GrowthCustomers on ourNetworkMobile Services 000s 77,479 69,384 12% 48,876 59%Tel-media Services 000s 2,509 2,394 5% 2,075 21%Total 000s 79,989 71,777 11% 50,951 57%Market Share of Major mobile Operators as of september 2008 (%) Mobile Operators Market Share Bharti Airtel 24.96 Reliance Communication 18.22 Vodafone Essar 17.76 BSNL 12.19 Idea Cellular 9.88 Tata Teleservices 9.54 28
  29. 29. Others 7.45 Investor RelationsCreating value for our customers, employees, investors, partners, vendors and thesociety at large lies at the root of our fundamental business strategy. Our core principlesof trust and transparency have come a long way in helping us develop and nurture long-term relationships with our key stakeholders. Our performance exudes from our beliefin and commitment to the telecom sector; and translates into creating innovativeexciting opportunities for one and all.We are one of India’s leading providers of telecommunication services with anationwide presence in all the 23 licensed jurisdictions (also known as TelecomCircles). We served an aggregate of 82,748,790 customers as of October 31, 2008; ofwhom 80,199,747 subscribe to our GSM services and 2,549,043 use our TelemediaServices either for voice and/or broadband access delivered through DSL. We are thelargest wireless service provider in the country, based on the number of subscribers asof October 31, 2008. We also offer an integrated suite of telecom solutions to ourenterprise customers, in addition to providing long distance connectivity both nationallyand internationally. We have recently forayed into media by launching our DTHServices in October 2008. All these services are rendered under a unified brand “Airtel”. 29
  30. 30. Fact sheetName Bharti Airtel Limited.Business Provides GSM mobile services in all the 23 telecomDescription circles in India, and was the first private operator to have an all India presence. Provides tele-media services (fixed line and broadband services through DSL) in 95 cities in India.Established July 07, 1995, as a Public Limited CompanyProportionate Rs. 270,122 million (year ended March 31, 2008-Revenue Audited) Rs. 184,202 million (year ended March 31, 2007- Audited) As per Indian GAAP AccountsProportionate Rs. 114,018 million (year ended March 31, 2008 -EBITDA Audited) Rs. 74,407 million (year ended March 31, 2007 - Audited) As per Indian GAAP AccountsShares in Issue 1,898,101,604 as at September 30, 2008Listings The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India Limited (NSE)Market Market CapitalisationCapitalisation (as on January 05, 2009) Approx. Rs. 1,301 billion Closing BSE share price = Rs. 685.35Customer Base 80,199,747 GSM mobile and 2,549,043 Telemedia Customers (status as on October 31, 2008)Operational Provides GSM mobile services in all the 23 telecomNetwork circles in India, and was the first private operator to have an all India presence. Provides telemedia services (fixed line) in 95 cities in India. 30
  31. 31. Company’s Current SituationBharti Airtel is one of India’s leading providers of telecommunication services with anationwide presence in all the 23 licensed jurisdictions (also known as TelecomCircles). We served an aggregate of 82,748,790 customers as of October 31, 2008; ofwhom 80,199,747 subscribe to our GSM services and 2,549,043 use our TelemediaServices either for voice and/or broadband access delivered through DSL.We also offer an integrated suite of telecom solutions to our enterprise customers, inaddition to providing long distance connectivity both nationally and internationally. Wehave recently forayed into media by launching our DTH Services in October 2008. Allthese services are rendered under a unified brand “Airtel”.The company also deploys, owns and manages passive infrastructure pertaining totelecom operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns42% of Indus Towers Limited.Bharti Infratel and Indus Towers are the two top providers of passive infrastructureservices in IndiaCompany shares are listed on The Stock Exchange, Mumbai (BSE) and The NationalStock Exchange of India Limited (NSE)PartnersThe company has a strategic alliance with SingTel. The investment made by SingTel isone of the largest investments made in the world outside Singapore, in the company.The company’s mobile network equipment partners include Ericsson and Nokia. In thecase of the broadband and telephone services and enterprise services (carriers),equipment suppliers include Siemens, Nortel, Corning, among others. The Companyalso has an information technology alliance with IBM for its group-wide informationtechnology requirements and with Nortel for call center technology requirements. Thecall center operations for the mobile services have been outsourced to IBM Daksh,Hinduja TMT, Teletech & Mphasis. 31
  32. 32. Managing Director’s profileSunil Bharti MittalChairman & Managing Director since October 2001Board director since: July 1995Age: 51 years • Sunil Bharti Mittal is the Chairman & Managing Director of Bharti Airtel Ltd. head quartered at New Delhi, India. • Bharti Airtel, India’s leading private integrated telecom company, has been at the forefront of the telecom revolution and has transformed the telecom sector with its world-class services built on leading edge technologies. Bharti has been a pioneering force in the telecom sector and today enjoys a strong nationwide presence. • Sunil started his career at a young age of 18 after graduating from Punjab University in India and founded Bharti, with a modest capital, in the year 1976. Today, at 49 he heads a successful enterprise, amongst the top 5 in India, with a market capitalization of over US$ 40 billion and employing over 30,000 people • Bharti has grown successfully in partnership with various leading companies of the world - Singapore Telecom, Vodafone, Warburg Pincus, British Telecom to name a few. • The other businesses in the group are consumer electronics (Beetel), life insurance with AXA of France (Bharti AXA), and a joint venture with the Rothschild group to develop Indian horticulture and export fruits and vegetables to the world (FieldFresh) • Bharti has recently entered into a JV with Wal-Mart for setting up supply chain, logistics and cash and carry to support the burgeoning retail market in India. • Sunil is an alumnus of Harvard Business School, MA, USA. • Sunil has been conferred one of the highest civilian award – Padma Bhushan • Sunil has been conferred the degree of Doctor of Science (Honoris Causa) by the G B Pant University of Agriculture & Technology. 32
  33. 33. Awards and Recognitions• August 7, 2008: Bharti Airtel adjudged the Best Cellular Service Provider and Best Broadband Service Provider at the 2008 V&D 100 Awards.• July 11, 2008: Bharti Airtel Limited voted as India s most innovative company , in a survey conducted by The Wall Street Journal . Bharti Airtel was ranked as the most innovative in responding to customer needs in a survey conducted to determine Asia s 200 most-admired companies.• June 13, 2008: Sunil Bharti Mittal received U.S.-India Business Councils Global Vision Award . The prestigious award recognizes his entrepreneurial zeal and contribution to Indian business.• June 11, 2008: Airtel voted the 2nd Most Trusted Service Brand in the Annual Economic Times-Brand Equity, Most Trusted Brands survey• June 2008: Airtel wins the Platinum Trusted Brand Award in the Mobile Service provider category in the Readers Digest Asia Trusted Brands Survey .• May 26, 2008: Airtel was honoured with the prestigious Wireless Service Provider of the Year award at the 2008 Frost & Sullivan Asia Pacific ICT Awards.• April 17, 2008: Bharti Airtel had the distinction of being amongst 20 companies worldwide and the only one in India , to be honoured with the Gallup Great Workplace Award.• April 8, 2008: Airtel adjudged as the Best Carrier India at the Telecom Asia Award 2008 . The Telecom Asia Awards, constituted by the Telecom Asia magazine, seek to recognize outstanding performances of companies and individuals in the Asian telecommunication industry based on criteria such as financials, market standing, technology and corporate governance. 33
  34. 34. Shares The equity shares of Bharti Airtel are currently listed on National StockExchange of India Limited (NSE) and The Stock Exchange, Mumbai, (BSE).Bharti Airtel offered 185,336,700 equity shares in the initial public offering (IPO) andraised Rs 8,340.15 million through this process. The shares were over subscribed 2.56times.With this IPO, Bharti Airtel established certain important landmarks in the history ofthe Indian capital market. Together with being the first 100% book building processthat this country has seen, the listing was completed within a record time of ten workingdays. of the close of the issue. Moreover the process of allotment and issue of shareswas also completed within one day of the last day of pay-in.The book running lead managers for the IPO were JM Morgan Stanley and DSP MerrillLynch and the registrars to the issue was Karvy Consultants Limited. 34
  35. 35. Organisation Structure As an outcome of a restructuring exercise conducted within the company; a newintegrated organizational structure has emerged; with realigned roles, responsibilitiesand reporting relationships of Bharti’s key team players. With effect from March 01,2006, this unified management structure of One Airtel will enable continuedimprovement in the delivery of the Group’s strategic vision. 35
  36. 36. Corporate Governance Bharti Airtel Limited firmly believes in the principles of Corporate Governanceand is committed to conduct its business in a manner, which will ensure sustainable,capital-efficient and long-term growth thereby maximising value for its shareholders,customers, employees and society at large. Company’s policies are in line withCorporate Governance guidelines prescribed under Listing Agreement/s with StockExchanges and the Company ensures that various disclosures requirements arecomplied in ‘letter and spirit’ for effective Corporate Governance.During the financial year 2003-04, your Company was assigned highest Governanceand Value Creation (GVC) rating viz. ‘Level 1’ rating by CRISIL, which indicates thatthe company’s capability with respect to creating wealth for all its stakeholders is thehighest, while adopting sound Corporate Governance practices.This rating was re-affirmed by CRISIL on April 20,2006. • Board of Directors • Audit Committee • Human Resource (HR)/ Remuneration Committee • ESOP Compensation Committee • Investor Grievance Committee • Memorandum of Association • Article of Association • Code Of Conduct 36
  37. 37. Board of DirectorsThe board of directors of the Company has an optimum mix of executive and non-executive directors, which consists of two executive and fourteen non-executivedirectors.The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is anExecutive Director and the number of Independent Directors on the Board is 50% ofthe total board strength. The independence of a director is determined on thebasis that such director does not have any material pecuniary relationship with theCompany, its promoters or its management, which may affect the independence of thejudgment of a Director. The board members possess requisite skills, experience andexpertise required to take decisions, which are in the best interest of the Company.The composition of the Board is as under: 1. Sunil Bharti Mittal 2. Rajan Bharti Mittal 3. Akhil Gupta 4. Rakesh Bharti Mittal 5. Chua Sock Koong 6. N. Kumar 7. Kurt Hellstrom 8. Mauro Sentinelli 9. Paul O’Sullivan 10. Pulak Chandan Prasad 11. Bashir Abdulla Currimjee 12. Ajay Lal 13. Arun Bharat Ram 14. Manoj Kohli 37
  38. 38. Audit CommitteeComposition of Audit CommitteeThe Audit Committee of Bharti Airtel Limited comprises of following six members,two-third of which are independent directors.S. No. Member Director Category1. N.Kumar (Chairman) Independent Director2. Rakesh Bharti Mittal Non-Executive Director3. Arun Bharat Ram Independent Director4. Ajay Lal Independent Director5. Pulak Chandan Prasad Independent Director6. Mr. Quah Kung Yang Non-Executive DirectorSecretary • The Company Secretary or his/her nominee act as the Secretary of the Committee.Meetings • The Committee shall meet at least four times a year. The time gap between any two meetings shall be less than 4 months.Annual General Meeting • The Committee Chairman shall attend the Annual General Meeting.Key FunctionsThe key functions of the Audit Committee include the following: • Oversight of the Company’s financial reporting process and the disclosure of its financial information, to ensure that the financial statements are true and accurate and provide sufficient information. • Recommending to the Board, the appointment, re-appointment and, if required, the replacement or removal of the statutory auditor and the fixation of their audit fees. • Approval of payment to statutory auditors for any other services rendered by the statutory auditors 38
  39. 39. Reviewing, with the management, the annual financial statements before submission tothe Board for approval, with particular reference to: • Matters required to be included in the Director’s Responsibility Statement, which forms part of the Board’s report in terms of clause (2AA) of section 217 of the Companies Act, 1956. • Changes, if any, in accounting policies and practices and reasons for the same. • Major accounting entries involving estimates based on the exercise of judgment by management. • Significant adjustments made in the financial statements arising out of audit findings. • Compliance with listing and other legal requirements relating to financial statements. • Disclosure of any related party transactions. • Qualifications in the draft audit report. 1. Reviewing, with the management, the quarterly financial statements before submission to the Board for approval. 2. Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control systems. 3. Reviewing the adequacy of internal audit function including the structure of the internal audit department, staffing and seniority of the official heading the department, availability and deployment of resources to complete their responsibilities and the performance of the out-sourced audit activity. 4. Discussion with internal auditors with respect to the coverage and frequency of internal audits as per the annual audit plan, nature of significant findings and follow up thereof. 5. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board. 6. Obtaining an update on the Risks Management Framework and the manner in which risks are being addressed. 7. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern. 8. Review the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non payment of declared dividends) and creditors, if any. 9. To review the functioning of the Whistle Blower mechanism and the nature of complaints received by the Ombudsman. 10. Carrying out any other function as is mentioned in the terms of reference of the Audit Committee. 39
  40. 40. 11. The un-audited/ audited quarterly financial results of the Company are also specifically reviewed by the Audit Committee before these are submitted to the Board for approval. Minutes of each Audit Committee meeting are placed before the Board for noting.12. The Audit Committee is empowered, pursuant to its terms of reference, to:13. Investigate any activity within its terms of reference and to seek any information it requires from any employee.14. Obtain legal or other independent professional advice and to secure the attendance of outsiders with relevant experience and expertise, when considered necessary.15. Bharti Airtel Limited has instituted internal processes and systems to insure that the Audit Committee has access to all the material information, and reviews on a regular basis the following:16. Management discussion and analysis of financial condition and results of operations.17. Statement of significant related party transactions (as defined by the audit committee), submitted by management.18. Management Certificates on Internal Controls and Compliance with laws & regulations, including any exceptions to these.19. Management letters / letters of internal control weaknesses issued by the statutory auditors.20. Internal audit reports relating to internal control weaknesses.21. The appointment, removal and terms of remuneration of the Chief Internal Auditor.22. The financial statements, in particular the investments, if any made by the unlisted subsidiary companies.23. The Audit Committee is also presented with the following information on related party transactions (whenever applicable):24. A statement in summary form of transactions with related parties in the ordinary course of business.25. Details of material transactions with related parties, which are not in the normal course of business.26. Details of material transactions with related parties or others, which are not on an arm’s length basis along with management’s justification for the same. 40
  41. 41. Human Resource (HR)/ Remuneration CommitteeCompositionIn compliance with the non- mandatory requirements of Clause 49 of the ListingAgreement, Bharti Airtel has constituted a Remuneration Committee (which is knownas HR Committee). The HR Committee comprises of following six non-executivedirectors, out of which four members including the chairman of the committee areindependent directors.S. No. Member Director Category1. Mr. Kurt Hellstrom(Chairman) Independent Non-Executive Director2. Mr. Mauro Sentinelli Independent Non-Executive Director3. Mr. Paul O’ Sullivan Non-Executive Director4. Mr. Rajan Bharti Mittal Non-Executive Director5. Mr. Bashir Abdulla Currimjee Independent Non-Executive Director6. Mr. Nikesh Arora Independent Non-Executive DirectorSecretary • The Company Secretary or his/her nominee act as the Secretary of the Committee.Key FunctionsThe key functions of the HR Committee includes the followings: • Attraction and Retention strategies for employees. • Employees Development Strategies. • Compensation (including salaries and salary adjustments, incentives/benefits bonuses, stock options) and performance targets for the Chairman and Managing Director (CMD) and Joint Managing Directors (JMDs) Executive Directors. • All Human Resources related issue. • Other key issues / matters as may be referred by the Board or as may be necessary in view of Clause 49 of the Listing Agreement or any statutory provisions. 41
  42. 42. ESOP Compensation CommitteeComposition of ESOP Compensation CommitteeThe ESOP Compensation Committee of the Board is constituted in accordance withSEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme)Guidelines, 1999. The Committee comprises of following six members of whom fourare independent and all are non-executive.S. No. Member Director Category1. Mr. Rajan Bharti Mittal (Chairman) Non-Executive Director2. Mr. Bashir Currimjee Independent Non-Executive Director3. Mr. Paul O’ Sullivan Non-Executive Director4. Mr. Mauro Sentinelli Independent Non-Executive Director5. Mr. Kurt Hellstrom Independent Non-Executive Director6. Mr. Nikesh Arora Independent Non-Executive DirectorSecretary • The Company Secretary or his/her nominee act as the Secretary of the Committee.Key Responsibilities The key responsibilities of the ESOP Compensation Committee include the following: • To formulate ESOP plans and decide on future grants. • To formulate terms and conditions on followings under the present two Employee Stock Option Schemes of the Company • the quantum of option to be granted under ESOP Scheme(s) per employee and in aggregate; • the conditions under which option vested in employees may lapse in case of termination of employment for misconduct; • the exercise period within which the employee should exercise the option and that option would lapse on failure to exercise the option within the exercise period; • the specified time period within which the employee shall exercise the vested options in the event of termination or resignation of an employee; • the right of an employee to exercise all the options vested in him at one time or at various points of time within the exercise period; 42
  43. 43. • the procedure for making a fair and reasonable adjustment to the number of options and to the exercise price in case of rights issues, bonus issues and other corporate actions; • the grant, vest and exercise of option in case of employees who are on long leave; and • the procedure for cashless exercise of options. • Any other matter, which may be relevant for administration of ESOP Schemes from time to time • To frame suitable policies and systems to ensure that there is no violation of Securities and Exchange Board of India (Insider Trading) Regulations, 1992 and Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 1995. • Other key issues as may be referred by the board. Investor Grievance CommitteeComposition of Investor Grievance CommitteeThe Investor Grievance Committee of the Board is constituted in accordance withClause 49 of the Listing Agreement. The Committee comprises of following fourmembers of whom three members including the Chairman, are non-executive directors.S. No. Member Director Category1. Mr. Akhil Gupta(Chairman) Non-Executive Director2. Mr. Manoj Kohli CEO & Joint Managing Director3. Mr. Rajan Bharti Mittal Non-Executive Director4. Mr. Rakesh Bharti Mittal Non-Executive DirectorSecretary • The Company Secretary or his/her nominee act as the Secretary of the Committee. 43
  44. 44. Key ResponsibilitiesThe key Responsibilities of the Investor Grievence Committeee includes the following: • Redressal of shareholders and investor complaints e.g. transfer of shares, non receipt of balance sheet, non receipt of declared dividend etc. • Formulation of procedures in line with the statutory guidelines to ensure speedy disposal of various requests received from shareholders from time to time. • Issue of duplicate share certificates in place of original certificate, which may be lost/ torn/ mutilated; • To approve and effect transmission of shares arising as a result of death of the sole/ any one joint shareholderMeetings • The meetings of the Committee are genrally held on a monthly basis, to review and ensure that all investor grievances are redressed within a period of 7-10 days from the date of receipt of complaint. These, however, do not include complaints/requests, which are constrained by legal impediments/procedural issues. 44
  45. 45. Memorandum of AssociationMerger/Demerger Orders • Order under section 391(2) and 394 of the Companies Act, 1956 regarding amalgamation of Viscount Holdings Limited, Jubliant Holdings Limited, Jumbo Holdings Limited with Bharti Tele-ventures Limited forming part of the Memorandum of Association of the Company. • Order under section 391(2) and 394 of the Companies Act, 1956 regarding amalgamation of Bharti Cellular Limited, Bharti Infotel Limited with Bharti Tele-ventures Limited forming part of the Memorandum of Association of the Company. • Order under section 391and 394 of the Companies Act, 1956 regarding amalgamation of Satcom Broadband Equipment Limited, Bharti Broadband Limited with Bharti Airtel Limited forming part of the Memorandum of Association of the Company. • Order under section 391and 394 of the Companies Act, 1956 regarding scheme of arrangement between Bharti Airtel Limited and Bharti Infratel Limited forming part of the Memorandum of Association of the Company. 45
  46. 46. COMPANY PLANS 46
  47. 47. ‘COMPANY’S PLANS’Prepaid PlansAre you wary of committing yourself to a date for making your bill payments? Is it toomuch of a bother for you to remember dates for bill payments? Do you often end uppaying late fees against your monthly utility services bills? Do you end up spending toomuch if you have the option to pay the bill later?Think over for if one of these represents you, we have a solution for you. Start thinkingprepaid is our advise!So what exactly is this prepaid! It is simply a way of going cellular by paying for thetalk time in advance. For eg if you feel that you need Rs 300 worth of talktime for amonth, you can buy a recharge coupon which gives you that much talktime on yourcellphone. Once that money gets exhausted you can buy another recharge coupon forthe same or different denomination depending on your future need.Prepaid allows you to be in control of your cellular expenses even while you arespending. You will be surprised that today In India, Prepaid connections account foralmost 60 to 70 percent of the total new entrants into cellular telephony. That’s becausealmost everyone of us wants to be in control of our cellular expense.Advantages of prepaid:Some of the many advantages that you enjoy with Airtel Pre-Paid... Total Cost ControlEnjoy the liberty of total cost control with your Airtel Pre-paid! Re-charge as much asyou feel the need to! Now thats what we call complete freedom! No RentalsBuy an Airtel prepaid card without having to pay any rentals! No depositsYour Airtel prepaid card comes without you having to pay heafty deposits! 47
  48. 48. STD/ISD facility till the last rupeeNow experience complete freedom like never before with Airtel! Our STD/ISD facilityallows you to make long distance calls in India and Overseas from your cellular phone! Instant Balance InquiryCheck your talk-time instantly by calling our toll-free number! 60 second pulseAirtel provides you with a 60-second pulse rate! Freedom for you to experience likenever before! Instant RechargeAvail of instant recharge on your Airtel prepaid card with just a few simple steps! 24-hour recharge facilityWith our round-the-clock recharge facility, recharge you Airtel prepaid card anytime,anywhere! Caller Line IdentificationCall Line Identification gives you the power to know the phone number of the callingparty even before you answer the call, thus giving you the choice to either reject or takethe call. It provides the added advantage of saving the incoming number directly in theHandset Phone Book. So that the next time you want to call the same person, you dontneed to retype his number, simply use your phone book. Call Divert, Call Hold and Call WaitAvail of special services like call waiting, call hold and call divert – all with your Airtelprepaid card! Short Messaging Service (SMS)With Airtel’s Short Messaging Service (SMS), send messages and jokes to your friendsand colleagues, anytime anywhere! SMS based Information ServicesWith Airtels SMS based information services, you can get upto-the-minute cricketscores, order flowers as well as send couriers or check your daily horoscope! Voice Mail serviceVoice Mail lets you receive messages even when your handset is switched off or whenyou are outside the coverage area. You can listen to your messages whenever you feellike, from anywhere in the world. Voice Mail can store up to 75 messages, with eachmessage of two-minute duration. 48
  49. 49. Post-paid PlanAirtel welcomes you to a vibrant world of unlimited opportunities. More exciting,innovative yet simple new ways to communicate, just when you want to, not justthrough words but ideas, emotions and feelings. To give you the unlimited freedom toreach out to your special people in your special way.Airtel Out of Home CircleWe have established one of the most extensive roaming tie-ups - both national andinternational- with the best service providers in the respective regions to ensure that youget uninterrupted coverage throughout. We currently provide roaming coverage in morethan 1000 cities and major highways across India. We also provide internationalroaming in 56 countries across 101 networks.National RoamingOur national roaming coverage currently spans across more than a 1000 cities acrossIndia. To subscribe to National Roaming, you have to pay the following:Security Deposit- Rs 1500Monthly Rental- Rs 49Customer CareDo you need any clarifications on your bills? Do you have any feedback or query onour Products & services? You can call us, send us an E-mail or meet us in person. Weshall be glad to help you out in every possible way.Contact us by phoneIf you are on Airtel, just call us on 121 your Airtel Prepaid phone .If you are on Airtel postpaid, just call us on 9897012345 or toll free 121 fromyourAirtel Postpaid phone.These toll free numbers however, cannot be dialed when you are roaming. 49
  50. 50. Group Links Of BhartiBharti AirtelBharti TeletechTelecom SeychellesBharti TelesoftBharti Del Monte IndiaBharti RetailBharti AXA General InsuranceBharti AXA Life InsuranceBharti AXA Investment ManagersBharti Learning SystemsJersey AirtelGuernsey AirtelBharti FoundationBharti Realty 50
  52. 52. RESEARCH METHODOLOGYMeaning of researchResearch in common parlance refers to a search for knowledge. One can also defineresearch as a scientific and systematic search for pertinent information as a specifictopic. In fact, research is an are of scientific investigation. The Advanced Learner’sDictionary of Current English lays down the meaning of research as “a carefulinvestigation or inquiry specially through search for new facts in any branch ofknowledge.” Redman and Mory define research as a “ systematized effort to gain newknowledge.” Some people consider research as movement, a movement from theknown to the unknown. It is actually a voyage of discovery. We all possess the vitalinstinct of inquisitiveness makes us probe and attain full and fuller understanding of theunknown. This inquisitiveness is the mother of all knowledge and the method, whichman employs for obtaining the knowledge of whatever the unknown, can be termed asresearch.Research is an academic activity and as such the term should be used in a technicalsense. According to Clifford Woody research comprises defining and redefiningproblems, formulating hypothesis or suggested solutions; collecting, organizing andevaluating data; making deductions and reaching conclusions; and at last carefullytesting the conclusions to determine whether they fit the formulating hypothesis.D.Slesinger and M Stephenson in the encyclopedia of Social Sciences define researchas “ the manipulation of things, concepts or symbols for the purpose of generalizing toextend, correct or verify knowledge, whether that knowledge aids in construction oftheory or in the practice of an art” Research is , thus, an original contribution to theexisting stock of knowledge making for its advancement. It is pursuit of truth with thehelp of study, observation , comparison and experiment. In short, the search forknowledge through objective and systematic method of finding solution to a problem isresearch. The systematic approach concerning generalization and the formulation of atheory is also research. As such the term’ research refers to the systematic methodconsisting of enunciating the facts and reaching certain conclusions either in the fromof solutions(s) towards the concerned problem or in certain generalizations for sometheoretical formulation.Defining the research problem: 52
  53. 53. A researcher must find the problem and formulate it so that it becomessusceptible to research. Like a medical doctor, a researcher must examine all thesymptoms (observed by him) concerning a problem before he can diagnose correctly. And therefore, I have also defined the research problem i.e. To studyconsumer trends, behaviour, preferences and level of satisfaction in Airtelcommunication Ltd.Research methodology: After defining the research problem the foremost step will be planningfor the further investigation. Preparing the blue print to undertake the research calledresearch design. In other words,“A research design is the arrangement of condition for collection and analysis of data ina manner that aims to combine relevance to the research purpose with economy inprocedure".Under this chapter methodological step has been adopted in the study of consumertrends, behaviour, preferences and level of satisfaction in Airtel communication Ltd.The research procedures followed are described as under:Research Objectives:To study the consumer trends in telecommunication sector.To study consumer decision-making & preferences.To study marketing strategies adopted by Airtel.To study the level of customer satisfaction in Airtel.To study the market potential.To study customer purchase decision behaviour.To understand the needs of different consumer segments.Comparative study of different mobile companies.Research Approach The research approach for the purpose was secondary research to collect theinformation on the subject.Research InstrumentI used direct observation, customer data & survey as research instrument.Sources of Data:Research Data Data is the key activity of marketing research. The design of the data collectingmethod is backbone of research design. 53
  54. 54. Data constitute the foundation of statistical analysis and interpretation. Hencethe first step in statistical work is to obtain data.Data can be obtained from two important sources, namely:Primary DataSecondary DataPrimary Data : Primary data are gathered for the specific purpose or for a specific researchproject, consist of original information for the fulfilment of project objective.When the data are required for the particular study can be found neither in the internalrecord of the enterprises nor in published sources. In some cases it may becomenecessary to collect original data.Primary data can be collected in four ways :-ObservationFocusSurveyExperimentSecondary data: Secondary data are the data, which already exists somewhere. Secondary dataprovide starting point for research and after that the advantage of low cost and readyavailability. Secondary data can be divided into two types:Internal dataExternal data When researcher uses the data that has already been collected by other data arecalled secondary data. Secondary data can be obtained from journals i.e. internalsources report, government publication and books, professional bodies etc. Internal data are reports and memos generated within an organisation tofacilitate its operations. External data are those specially produce for outsideconsumption.Sources from which I have taken the secondary data are as under:Direct observationAirtel websiteBooks for marketing managementSurveys and customer data & report 54
  55. 55. KNOPs Research Work 55
  56. 56. (1) Do you have any mobile connection? Having Mobile Not having mobile The data shows that the total sample size of 500 people taken for research out ofwhich 86% of persons keep mobile with them. 56
  57. 57. (2) Which age group you belong to?(a)15-20(b)20-25(c)25-35(d)35- above 15-20 20-25 25-35 35-aboveThe analysis shows that 14% people from 15- 20 age group, 7.4% persons from 20-25age group, 36% persons from 25-35 age group, and 42.6% of people from 35-above agegroup keep mobile with them. 57
  58. 58. (3) What occupation do you have?(a)Business(b)Professional(c)Government Employee(d)Student 250 200 150 Occupation 100 50 0 a b c dThe data shows that 216 persons are from business, 123 persons are professionals, 68persons are government employees and 93 persons are found students to consumemobiles. 58
  59. 59. (4) Do you know how many telecommunication companies exist in Lucknow region?(a)6(b)5(c)4(d)Not confirm a b c dThe data shows that 60% of people are aware about all companies dealing intelecommunication in Lucknow, 30% of people says about only 5 companies, 5% are ofboth categories knowing either 4 company or not knowing any and 5% are having notconfirm information about mobile companies dealing in Lucknow. 59
  60. 60. (5) If you have to purchase mobile phone connection which company you will preferand why?(a)Airtel(b)Reliance(c)TATA indicom(d)Vodafone 45 40 35 30 25 20 preferences 15 10 5 0 m E E L C N TE co O N di IR IA AF in A EL D TA VO R TAWhen the preferences for mobile phone connections were asked, results drawn that40% of persons prefer to take AirTel because they believe in AirTel’s better coverage& cheaper rates after AirTel, 20% of people opt TATA indicom services because of itscheaper rate and flexible schemes, then Reliance is only 25% . Airtel is rich inattractive schemes and plans for business persons and persons related to corporateworld.(6)How you came to know the scheme/service that you use? 60
  61. 61. Awareness of Service Promotion SampleWord of mouth Advertisement activities Internet size 137 78 60 25 300  Word of mouth and advertisement play a major role of service awareness. 71% of customer aware about the service through this.(7) You would like to take Prepaid connection or Post paid connection? 61
  62. 62. post paid 27% pre paid 73%The research study shows that almost people from the selected segment give priority toPre Paid connection, because of the flexibility and attractive plans for this marketsegment. 62
  63. 63. DATA ANALYSIS 63
  64. 64. B&F SECTOR MARKET SHARE 29% Airtel 36% Vodafone Reliance Tata BSNL 0% 21% 14%M&D SECTOR MARKET SHARE 29% Airtel36% Vodafone Reliance Tata BSNL 0% 21% 14% 64
  67. 67. GOVT. SECTOR MARKET SHARE 29% Airtel36% Vodafone Reliance Tata BSNL 0% 21% 14%BROADBAND MARKET SHARE 29% Airtel36% Vodafone Reliance Tata BSNL 0% 21% 14% 67
  68. 68. OVERALL MARKET SCENARIO 29% Airtel36% Vodafone Reliance Tata BSNL 0% 21% 14%MAJOR USP OF AIRTEL 8% 8% SERVICE CONNECTIVITY LOW TARIFF23% SPEED 61% 68
  70. 70. LIMITATIONS 70
  71. 71. LIMITATIONSIn this project, I have tried to present facts with figures penetrating to my survey skillit has some limitation, which are there in this project need identification. • The sample survey is done on a very small number of people thus the results drawn may be different from the opinion of the universe. • The time of two months is very less for covering all the aspects of the project. • The feedback received from the individuals is according to his perception, limited exposure and personal knowledge level. • Very less time was there for interacting with corporate clients. • Problem in meeting with the concern person without appointment. • The last but not the least is that the database which I gathered from the websites is not so reliable because many times I face a difficulty to find the address of the companies and sometimes the companies change the address and not upgrade in the websites due to which I waste my time as well as money also. 71
  72. 72. “FINDINGS” 72
  73. 73. “FINDINGS” The data shows that the total sample size of 500 people taken randomly for theresearch, 430 person out of then taken mobile with them. This segment comproise ofprofessions, businessperson, service man & students. About awareness of Telecom Company in Lucknow the data collected showsthat 60% of the people knows about all the telephone companies dealing in Lucknowmarket, 30% of person knows only few companies, 5% of person knows only onecompany, 5% are not knowing anyother company. The segment belong to business like to have Post paid connection. Whereasstudents, professional and service persons give their preference to Prepaid connection. When the preferences for mobile phone connections were asked, resultsdrawn that 40% of persons prefer to take AirTel because they believe in AirTel’sbetter coverage & cheaper rates after AirTel, 20% of people opt TATA indicomservices because of its cheaper rate and flexible schemes, then Reliance is only 25% .Airtel is rich in attractive schemes and plans for business persons and persons relatedto corporate world. 73
  74. 74. CONCLUSION 74
  75. 75. CONCLUSION SWOT ANALYSIS OF AIRTEL STRENGTHS1. Strong Brand Image.2. Good Network Connectivity.3. Wide Network Coverage.4. Attractive Promotional Schemes.5. Good Value Added Services.6. Operating In 65 Countries With 157 Operators. WEAKNESS1. Perceived As An Expensive Brand.2. Absence In The Rural And Interior Areas. OPPORTUNITY1. Poor Network Connectivity of Its Competitors.2. Large Chunk Of Dissatisfied Customer.3. Though Being The 4th Entrant,They Are Oprating At 900 Frequencies. THREATS1. Strong Visibility Of Competitors.2. Sour Experience With Airtel By Few Can Lead To Bad Word Of Mouth.3. Continous Improvement In Competitor’s Services. 75
  76. 76. Liberalization of the telecommunications market has entered a new phase:competition already exists (albeit in limited form) in some markets, such as the long-distance market and the market for Internet access via the STN. Other segments, suchas the local loop (essentially the high-speed Internet access market), are being openedup. At this stage, it is no longer simply a question of opening up particular markets,but rather, consolidating the play of competition in those markets that have beenopened as well as developing competitive new services. This explains the importanceof high-speed access technologies for the future of the sector.To face up to these challenges, regulatory activity is changing. It is constantlyadapting to market trends and to economic situations, which are often difficult.Among its priorities it now counts new economic and social concerns as theinformation society develops: national coverage is a major issue and Airtel’intends to play its part to protect the interests of all consumers.To this backdrop, a new regulatory organisation is emerging. It must supplyregulatory activity with new tools to encourage lasting competition in thetelecommunications sector. It must also contribute to the development of a moreconsistent UP west market that is better able to face up to the challenges of theinformation society within the context of globalisation. After thorough analysis and interpretation of result obtained I studied overallconsumer trends in Airtel Telecommunication Ltd. How people react to its servicesand schemes. How company attract its customer by adopting effective strategies. Inthe last the conclusion is drawn through this research that being the biggest and oldestnetwork of mobile telecommunication in Uttar Pradesh West, having good quality ofservice, taking along a big part of people aware about Airtel, it is subsisting hard. ForAirtel connection most of customers are professional and business segment. “Good service is the way to retain clients” 76
  78. 78. RECOMMENDATIONThe Study was conducted in to very vast group of respondents and so its reflectionsand interpretations provide a suggestion platform me as: 1. No charge for SMS advertising 2. Advertising should not be over contend, like Advertisements via e-mail 3. Small jingle and funny massage must be used preferably 4. Approach of Advertising should not be like T.V. Advertising but it must be in SMS Flash or in funny tone.It these suggestion and limitations will entertained properly the should be verybrighter. SMS Advertising world semester, Innovative and creative way ofAdvertising. 78
  79. 79. BIBLIOGRAPHY 79
  80. 80. BIBLIOGRAPHYwww.airtel.inwww.airtelworld.comwww.researchandmarket.comwww.info-shop.comwww.smartmobs.comwww.yahoosearch.comwww.google.com 80
  81. 81. ANNEXURE 81
  82. 82. QUESTIONNAIREI RATAN KUMAR a final year student of IIeBM, Pune presently pursuing MBA(Marketing) . I have prepared the following questionnaire for the completion of mysummer project. I promise that all the answer provided by you won’t be made public.This questionnaire is purely for educational purpose.BHARTI AIRTEL, PUNE ( MAHARASTRA)Name:__________________________________________________________________Age: ________Occupation _____________________________________ 82
  83. 83. Address:________________________________________________________________Phone No._________________________________________________________________ QUESTIONNAIREQUS (1)Do you have any mobile connection?QUS (2) Which age group you belong to? (a)15-20 (b)20-25 (c)25-35 (d)35- aboveQUS (3) What occupation do you have? (a)Business (b)Professional (c)Government Employee (d)StudentQUS (4) Do you know how many telecommunication companies exist in Lucknowregion? (a)6 (b)5 (c)4 (d)Not confirmQUS (5) If you have to purchase mobile phone connection which company you willprefer and why? (a)Airtel (b)Reliance (c)TATA indicom (d)VodafoneQUS (6)How you came to know the scheme/service that you use? (a) Advertisements (b) Word of Mouth 83
  84. 84. (c) Internet (d) Promotional activityQUS (7) You would like to take Prepaid connection or Post paid connection? 84