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Summertrainingprojectreportonmarketingstrategiesofairtelairtel 100704131405-phpapp02 Summertrainingprojectreportonmarketingstrategiesofairtelairtel 100704131405-phpapp02 Document Transcript

  • PROJECT REPORT ONMARKETING STRATEGIES OF AIRTELSUBMITTED UNDER PARTIAL FULFILLMENT OF THE REQUIREMENT FORTRAINING SUPERVISOR: PROJECT ADVISOR: SUBMITTED BY: SESSION:
  • ACKNOWLEDGEMENTI acknowledge the sincere assistance provided to me fromseveral rather unexpected quarters during the course ofexecution of this study. It would be a mammoth task to place onrecord my gratitude to each and every one of them but a wholehearted attempt would be made nevertheless, least I be brandedungrateful.I am extremely thankful to Mr.Abhishek Yadav, (UnitAdvisor) for giving me an opportunity to undergo training inBHARTI AIRTEL MARKETING and making my stay at AIRTELMARKETING a memorable learning experience.Where the emotions are involved words cease to work. I amdeeply indebt to ---------------------- for her encouragement,affections, valuable advice and guidance that helped me tocomplete this project successfully. 2
  • EXECUTIVE SUMMARYThe project aims at understanding the Marketing strategies atAirtel and its impact on the perception of Airtel Cellular Services.Research has demonstrated conclusively that it is far more costlyto win a new customer than it is to maintain an existing one. Andthere is no better way to retain a customer than to exceed hisexpectations. For this purpose it is essential to know the level ofcustomer satisfaction. The focus of my research was themeasurement of customer satisfaction level for the servicesprovided by Bharti Airtel. The research was done for thecorporate clients of Bharti Airtel. My job was not only torepresent the Corporate Sales Dept. and collect the feedbackfrom the clients but also to get the major complaints resolvedthrough internal counselling. There can be no better opportunityto interact with the external as well as the internal customers ofan organization. Finally the results of the research verify the factthat keeping the customer satisfied is the best strategy to notonly retain the existing customers but also to expand thebusiness to new horizons. 3
  • TABLE OF CONTENTS1. TELECOMMUNICATION MARKET IN INDIA 72. GSM MARKET IN INDIA 113. INTRODUCTION 234. TARIFF STRUCTURE 395. PROMOTIONAL STRATEGY 486. MARKET SITUATION 507. COMPETITIVE SITUATION 518. MARKETING STRATEGY ADAPTED BY BHARTI 609. OBJECTIVE 6910. RESEARCH METHODOLOGY 7011. LIMITATION 7112. SWOT ANALYSIS 7913. CONCLUSION 8114. BIBLIOGRAPHY 8215. QUESTIONNAIRE 83 4
  • TELECOMMUNICATION MARKET IN INDIAThe Indian telecommunications Network with 250m telephoneconnections is the fifth largest in the world and is the secondlargest among the emerging economies of Asia. Today it is thefastest growing market in the world and represents uniqueopportunities for UK companies in the stagnant global scenario.Tele-density, which was languishing at 2% in 1999, has shown animpressive jump to 9.5% in 2006 and 10.5% in 2007 and is set toincrease to 20% in the next five years beating the Govt. targetby three years. Accordingly, India requires incrementalinvestments of USD 20-25 bln for the next five years.Private operators have made mobile telephony the fastestgrowing (over 164% p.a.) in India. With more than 33 millionusers (both CDMA and GSM), wireless is the principal growthengine of the Indian telecom industry. Given the current growthtrends, cellular connections in India will surpass fixed line by late2004/early 2005. Intense competition between the four mainprivate groups - Bharti, Vodafone, Tata and Reliance and with theState sector incumbents-BSNL and MTNL has brought about asignificant drop in tariffs. There has been almost 74% in cell 5
  • phone charges, 70% in ILD calls and 25% drop in NLD charges,resulting in a boom time for the consumers.The Government has played a key enabling role by deregulatingand liberalising the industry, ushering in competition and pavingthe way for growth. While there were regulatory irregularitiesearlier, resulting in litigation, these have all been addressed now.Customs duties on hardware and mobile handsets have beenreduced from 14 percent to 5 percent.The Indian government has merged the IT and TelecomMinistries to speed up reforms and decision on theCommunication Convergence Bill to enable the commonregulation of the Internet, broadcasting and telecoms will betaken after the new Government assumes responsibilities in maythis year. An independent regulatory body (TRAI) and disputesettlement body (TDSAT) is fully functional.INDIAN CELLULAR MARKETThe Bharti Group, which operates in 23 circles, continues to bethe countrys largest cellular operator, with 50 lakh subscribers.BSNL, which operates in 22 circles, has a subscriber base of 37lakh subscribers. Thus BSNL stands second largest cellularoperator in terms of subscriber base at the end of the fiscal 6
  • ending March 31, 2007, displacing Vodafone from the secondposition.Vodafone, which operates in only eighteen circles, is the thirdlargest operator with a subscriber base of 32 lakh. Unlike fellowpublic sector undertaking, MTNL, which operates in Mumbai andDelhi, BSNL has been a very aggressive player in the market."Cellular operators who expected BSNL to go the MTNL way,were taken by surprise and did not take effective steps tocounter it, till it was too late in the day," said a telecom analyst.Belying fears of a slowdown in cellular subscriber acquisitions,the cell club has reported a 7.92% growth, the highest growth inany month so far, during March 2005. Year-on-year, the cellularsubscriber base in the country has almost doubled in March2005, and is expanding at the rate of 25% per year thereafter.The cellular subscriber club expanded by 21.31 lakh last month.This is much higher than 5.9 lakh subscribers added in February2005 and 2.13 lakh in January 2005. Idea, which operates inSeven circles, is the fourth largest operator with a subscriberbase of 17.80 lakh, higher than BPLs 11.31 lakh subscribersacross four circles. The subscriber numbers per operator dropsharply with the sixth largest operator, Spice Communications,having a subscriber base of 9.40 lakh, followed by Reliance 7
  • Telecoms 8.9 lakh subscribers. MTNL is the ninth largestoperator, with a base of 8.32 lakh subscribers.While the subscriber base-jumped by 3.38% to 44.39 lakh in themetros, subscriber base of category A circles of Maharashtra,Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu jumped by10.18 % to reach 43.64 lakh. Category B circles of Kerala,Punjab, Haryana, Uttar Pradesh (West), Uttar Pradesh (East),Rajasthan, Madhya Pradesh and West Bengal recorded a jump of10.69%, with a total base of 33.74 lakh subscribers. Circle C hasreported 12.74 % growth with subscriber numbers jumping to5.08 lakh.Among the metros, while Mumbai added 1,63,180 subscribers,higher than the 1,58,646 added by Delhi, the Capitals cellularsubscriber base of over 80 lakh is still higher than Mumbais66.89 lakh. While the cellular industry has been on roll for thefirst three quarters of the previous financial year with an averageof 16.75 lakh monthly additions in the third quarter, the first twomonths of 2007 had seen the growth slowing down. 8
  • GSM MARKET IN INDIARegional Interest Groups - GSM IndiaWith a population of around 1.1 billion growing at roughly 1.7 percent a year, India is potentially one of the most exciting GSMmarkets in the world. After two rather difficult years, the past 12months have seen the regions promise beginning to come tofruition. Much of this success can be attributed to thestabilisation of the licensing and regulatory environment.Indias telecommunications have undergone a steadyliberalisation since 1994 when the Indian government firstsought private investment in the sector. More significantliberalisation followed in 1996 with the licensing of new localfixed line and mobile service providers. However, it has been the 9
  • governments New Telecom Policy (1999) that has had the mostradical impact on the development of GSM services. The policysmission statement is affordable communications for all, Thereis a genuine commitment to creating a modern and efficientcommunications infrastructure that takes account of theconvergence of telecom, IT and media. In addition, the policyplaces significant emphasis on greater competition for both fixedand mobile services.Competition in the mobile sector has already had a visibleimpact on prices with calls currently costing less than 9 cents perminute. This means that service costs have fallen by 60 per centsince the first GSM networks became live in 1995. It also helpsexplain why a recent Telecom Asia survey revealed that morethan 70 per cent of Indian mobile subscribers felt that priceswere now at a reasonable level.One of the challenges facing GSM operators in India is thediversity of the coverage regions -from remote rural regions tosome of the most densely populated metropolitan areas in theworld. India has more than 40 networks, which cover the sevenlargest cities, over 7000 towns and several Lacs villages. Suchdepth of coverage has required enormous investment fromIndias operators. It is estimated that more than Rs200 billion 10
  • had been invested in Indias GSM industry by mid-2000, a figurethat is set to be supplemented by a further Rs. 300 billion overthe next five years.The good news is that subscriber growth is beginning to lookhealthy. With Indias low PC penetration and high averageInternet usage -at 14-20 hours a month per user it is comparableto the US -the market for mobile data and m-commerce looksextremely promising. WAP services have already been launchedin the subcontinent and the first GPRS networks are in theprocess of being rolled out. In the year ahead, GSM India willwork with its members to realise the potential of early packetservices in anticipation of the award of 3GSM licences.India fastest growing GSM martIndia is expected to have 145 million GSM (global system formobile communications) customers by 2007-08 compared to 26million subscribers as on March 2005, according to the GlobalMobile Suppliers Association. "For GSM, India is a success story.It is one of the fastest growing markets with its subscriber basedoubling in 2005. At this pace, the target of 150 millionsubscribers by 2007-2008 is definitely achievable," Alan Hadden,president of GSA, said at a news conference in New Delhi. 11
  • Globally, the GSM market reached 1 billion users in February2005, he said, adding GSM accounted for 80 per cent of the newsubscriber growth in 2005."Almost every Latin American operatorhas chosen GSM. In North America GSM growth is bigger thanCDMA (code division multiple access)," he said. Commenting onthe raging debate over GSM versus CDMA in mobile servicesarena, Hadden said: "GSM is the worlds most successful mobilestandard with over 1 billion users, and is an open mobilestandard. It also supports automatic international roaming, whichis a major contributor to business plans."India’s GSM mobile firms’ revenue up 30 pctIndia’s private telecoms firms offering GSM-based mobileservices reported a 24 percent rise in revenue in the year toMarch 2007 but said future growth rates could slow because ofheavy taxes on the nascent industry. Although India’s mobilesector is the world’s fastest growing major wireless market, it isamongst the highest taxed industries in the country. Mobilecarriers pay as much as 25 percent of their revenue as licencefee, spectrum charges and other taxes. The Cellular OperatorsAssociation of India (COAI) said revenue for fiscal 2003/04 stoodat 83.08 billion rupees ($1.86 billion) compared with 64 billionrupees a year earlier. According to T.V. Ramachandran, director 12
  • general at COAI, “These revenue growth rates cannot bemaintained unless there is a concerted effort by the governmentto cut excessive levies and allow sharing of infrastructure”“But the potential to do much better exists as there is still hugedemand in the sector.” Ramachandran said the sector was stilllosing money but declined to elaborate. Sales jumped becauseof a doubling of the GSM (Global System of MobileCommunications) user base as more people entered theflourishing market thanks to one of the lowest call rates in theworld. But the monthly average revenue per user, a key measureof profitability, declined 17.4 percent to 432 rupees in the fourthquarter compared with 523 rupees in the first quarter due to acut in tariffs and excessive competition among companies.Growth slowing, demand untapped: The association has notincluded the financial performance and the GSM-user base ofstate-run firms Bharat Sanchar Nigam Ltd, the second-rankedplayer, and Mahanagar Telephone Nigam Ltd, Ramachandransaid. There are 150 million GSM customers and more than 96million users of the rival CDMA-based mobile services in thecountry.The pace of growth in monthly additions is slowing after just 1.25million users took up the service in April compared with 13
  • 1.9 million in the previous month and 1.63 million in February.Ramachandran blamed the slowdown on a majority of small GSMoperators being unable to expand networks into rural swatheswhere demand remained largely untapped.“Our surpluses are not enough to cover costs of networkexpansion and financing charges on loans. We are makingmoney only to cover operating expenses,” he said. Carriers arenow subsidising handset costs to woo users into theunderpenetrated industry forecast to have more than 250 millioncustomers by 2007. Roughly three percent of Indians own amobile phone compared with about 20 percent in China. About adozen firms such as Bharti Airtel Ltd, 28 percent owned bySingapore Telecommunications, Reliance Infocomm Ltd and theIndian GSM-unit of Vodafone group battle in the hotlycompetitive sector. 14
  • DOES GSM HAVE THE EDGE?GSM operators are not the only ones who are worried about therapid strides made by CDMA mobile players Reliance Infocommand Tata Indicom in the Indian cellular market?The GSM suppliers – both handset and equipment - whoincidentally also have their other foot firmly placed in the CDMApie, are beginning to lose some sleep over what was earliertermed as `niche’ and `minuscule’ data carriage market by theoperatorsApart from the strong success of the two CDMA operators whosenetworks are based on code division multiple access (CDMA), themiserable showing of the four global standard for mobile (GSM) 15
  • based networks that launched general packet radio service(GPRS) service for data connectivity in last three years, has thevendors worried. Global mobile Suppliers Association (GSA) nowbelieves that even though India will primarily remain a voicetraffic-led market in next two-three years, the data trafficcomponent will grow by 25-30 per cent, an optimism that it’strying to make GSM operators feel as well.THE CDMA CHALLENGECDMA players had launched their services with CDMA 2000 1X-based networks, which can give hi-speed, always-on connectivityto the Internet, and other data services. GSM operators, on theother hand, have had to migrate from the frustrating experienceof WAP (wireless application protocol) to GPRS, which has not 16
  • significantly improved the subscriber’s experience of surfing theNet on/from mobile.The top brass of GSA, an organisation comprising Nokia,Siemens, Ericsson, Alcatel and Lucent Technologies - met onTuesday in the capital to persuade the operators to adopt EDGE(Enhanced Data rates for GSM Evolution) and leave GPRS behindas a dream gone sour.Only Airtel, Vodafone, BPL Mobile and Idea Cellular had launchedGPRS, but the data transfer speeds of GPRS have been abysmal.The field trials gave a speed of around 54 kbps, but the actualspeeds have not exceeded 14-18 kbps, a major reason why GPRSgrowth has been so slow. As against the total GSM cellular baseof 5.61 crore, the country has between 2,80,000 lakh GPRS usersonly. In comparison, the two CDMA operators have about 120lakh connections. All these sets are data compliant. Though nofigures are available as to how many use these for data services,the figure is believed to be respectable as a percentage ratio forCDMA.Bharti is almost thereBut first, the EDGE! Bharti Cellular is close to commerciallylaunching its EDGE service in Delhi and Mumbai by end May orearly June, sources said. The company was the first to conductfield trials in November with its equipment supplier Ericsson. Idea 17
  • too held EDGE field trials in February this year with its vendorNokia. Vodafone and BPL are yet to hold the trials. The twocompanies would eventually migrate to EDGE, but perhaps afterseeing the response to Bharti’s service.EDGE holds the promise of delivering data speeds of around 170-180 kbps (as against the theoretical speed of around 380 kbps)which, if achieved, promises the launch of many dataapplications. The scalable cost of migrating from GPRS to EDGEis not too high and mainly comprises software upgrades in caseof a modern network such as Bharti and Hutch, claimed chairmanof GSA India chapter Rakesh Malik.Will GSM maintain its headstart?At the GSM Evolution Forum held in New Delhi, GSA presidentAlan Hadden predicted that GSM growth will far outstrip CDMA aswas happening globally. He felt India could have as many as 200million GSM subscribers by 2007-2008, up from nine million inDecember 2004. According to GSA, there are over 1.1 billionGSM subscribers worldwide as against 250 million CDMAcustomers. The revenue of top 25 global operators from dataaverages 18 per cent and 22 of these operators run GSM 18
  • networks. Overall, there are 76 operators in 50 countries thathave committed to deploy EDGE.Almost every country has a GSM-based network and even thoseUS operators, which operated on now-defunct TDMA technology,were migrating gradually to GSM, not CDMA, pointed out Haddenat the GSM Evolution Forum. The Forum is a global GSA programto assist the operators for evolution to third generation (3G)technologies. “People are using their phones for much more thanvoice. Fifteen networks have commercially launched EDGE as itcan run 3G like services in the existing spectrum for theoperators without needing a 3G license. Even the migration to afull-fledged 3G level of Wideband CDMA (WCDMA) will be smoothwith EDGE,” said Hadden.“Besides, the automatic roaming provided by GSM networks inalmost 200 countries is a power that CDMA doesn’t give you. Weknow for sure that almost 20-25 per cent of the revenue forsome GSM operators comes from roaming customers,” he added.But CDMA is no pushover with Korea and Philippines as theshining jewels in its crown. The first CDMA 2000 1X wascommercially deployed in October 2000.Already, 81 operators have launched 77 CDMA 2000 1X networkswhereas nine have launched services based on 1xEV-DO 19
  • platform across Asia, the Americas and Europe. At least, 16 new1X and six 1xEV-DO networks are scheduled to be deployed in2004, according to CDMA Development Group. EV-DO and EV-DVare the next level of evolution on the CDMA 2000 1X platform,capable of delivering services comparable to 3G WCDMA.Where are the models?What will matter a lot in this war will be the availability of EDGEcompliant handsets at affordable rates. While the two CDMAoperators have been giving out handsets that can give hi-speeddata transfer, same has not been the case with GSM. Even now,GPRS handsets have not become commonplace and GPRSfeature is found only in mid and high-end segment handsets.End sum gameWhen the networks deploy EDGE, subscribers can expect thedelivery of advanced mobile services such as easy downloadingof video and music clips, full multimedia messaging, besideshigh-speed Internet and e-mail access, provided their handsetsupports all this.But the real cruncher will be the migration at a later stage to 3Gtechnologies such as WCDMA, EV-DO or EV-DA as and when thegovernment decides what to do with the 3G licences. WCDMA for 20
  • example promises delivery of a phenomenal 2 megabytes persecond (mbps), equivalent to what a leased line in many middlelevel corporates gives.More importantly, WCDMA will spawn a whole new range of fullmotion audio-video applications, including video telephony. GSMlobby may continue to remain gung ho over the future of theirtechnologies over that boosted by the American firms Qualcommand Motorola, but Indian market could well throw an interestingscenario that industry experts will do well to watch. In thecoming months, Reliance plans to offer its CDMA subscribersmuch more than what GSM players intend to deliver throughtheir EDGE for their subscribers.Who succeeds in this battle for mobile customer’s eyeballs ismost difficult to predict. A Korea and Japan may not be waiting tohappen in India, but India will probably be more like the Chinesemarket with both standards co-existing. For now, GSM rules! 21
  • INTRODUCTIONAirtel (Bharti Airtel Ltd.)Bharti Airtel Limited was incorporated on July 7, 1995 forpromoting investments in telecommunications services. Itssubsidiaries operate telecom services across India. Bharti Airtel isIndias leading private sector provider of telecommunicationsservices based on a strong customer base consisting of 50million total customers, which constitute, 44.6 million mobile and5.4 million fixed line customers, as of March 31, 2007.Airtel comes to us from Bharti Airtel Limited - a part of thebiggest private integrated telecom conglomerate, BhartiEnterprises. Bharti provides a range of telecom services, which 22
  • include Cellular, Basic, Internet and recently introduced NationalLong Distance. Bharti also manufactures and exports telephoneterminals and cordless phones. Apart from being the largestmanufacturer of telephone instruments in India, it is also the firstcompany to export its products to the USA. Bharti has also put itsfootsteps into Insurance and Retail segment in collaboration withMulti- National giants. Bharti is the leading cellular serviceprovider, with a footprint in 23 states covering all four metrosand more than 50 million satisfied customers.SERVICESAirtel PrepaidAirtel Prepaid, the Ready Cellular Card from Airtel comes to youfrom Bharti Enterprises, Indias leading integrated telecomservice provider. Going mobile with Airtel Prepaid is a new way oflife. With a host of great features, also simple to use, AirtelPrepaid makes everything that you dreamt and believed,possible.Total Cost ControlYou can control your Airtel Prepaid like never before. No morerentals or deposits – simply recharge as much as you need tofrom as low as Rs. 10, to as high as Rs. 10,000/-. 23
  • Pre activated STD/ISD without deposits or rentalsYou can now enjoy a pre-activated STD/ISD on your AirtelPrepaid. No more paying deposits or having a minimum balancein your account to make an STD/ISD call. Hassle-free calls arehere to stay!Strong Network CoverageEnjoy complete clarity when calling with Airtel’s world-classtechnology and unbreakable network coverage that spans over23 circles across the country.Instant Balance and Validity EnquiryYour account balance is updated on the screen of your handsetat the end of each chargeable call. You can also call 123 fromyour mobile phone and listen to the voice announcement orsimply dial *123#, press OK or YES button and your accountbalance will be displayed on the screen of your handset.Recharge your Airtel PrepaidRecharging is Easy. The calling value on your card keepsreducing as you make calls or use any other chargeable service.Choose the Airtel Prepaid Recharge Coupon that’s right for you,from a variety of tailor– made recharge coupons with different 24
  • denominations, which are available at a number of outlets acrossyour city. Simply follow the procedure mentioned below, torecharge your phone.Prepaid RoamingAirtel Prepaid comes preactivated with National Roaming, soyou stay connected no matter wherever you are. You can alsosend or receive MMS, check your email and access other GPRSservices while roaming in India as you would in your own city.While traveling abroad you can receive calls & send or receiveSMS.Other ServicesAirtel brings you, a wide range of Services that will change theway you communicate. Try them and discover a whole new worldof fun and excitement.Call management ServicesCall waiting, call hold, call divert and Caller Line IdentificationPresentation – all with your Airtel prepaid connection.Voice Mail 25
  • When your handset is switched off, or you’re too busy to answerthe phone, Airtel Voicemail will answer your calls and record amessage. The best part is that theres no extra monthly cost forsetting up Voicemail - you just pay for the phone call when youuse the service.SMS (Short Messaging Service)Send messages quickly and easily using text, if its too noisy totalk or you dont have much time. Its the way to share thoseinteresting one-liners, important reminders and rib-tickling jokes,with anyone, anytime, anywhere in the world.Subscription AlertsGet regular alerts on news, jokes, business, health and films onyour Airtel mobile phone with Subscription Services. SMS <SUBNEWS> to 3333 for News, <SUB JOKE> for Jokes, <SUB BIZ> forBusiness News, <SUB SPO> for Sports Alerts & <SUB VAASTU>for Vaastu tips.MMS (Multi-media Messaging Service):Jazz up your messages with pictures, images and video clippings,with MMS from Airtel! To activate MMS on your phone, SMSMMS to 56465 and save service settings.Airtel Live! 26
  • Make your mobile the most happening entertainment destinationwith Airtel Live! Airtel brings you the latest in entertainment andinformation services, right on your phone!Airtel Live! WAP Services: Download the latest ring tones,games, wallpapers, videos and much more. You can also getnews clips, watch live TV and download full songs on you phone.To get Airtel Live! settings on your phone, SMS Live to 56465and save the settings that you receive as your preferredconnection. Airtel Live! Portal can be accessed from you GPRSenabled phone, by sending a SMS FUN to 56465.Airtel Live! Voice Services: Just Dial 56465, and name theservice. For e.g. say ring tones to download your favorite ringtones. You can also choose a variety of content options like LiveCricket Commentary, latest National / International News, MovieReviews or Stock Market Updates.Airtel Live! SIM Services: Access loads of fun content andexciting services like cricket, stocks, on your phone at the touchof a few buttons with Airtel Live! SIM based Services on your SIMcard menu. To download new services on your Airtel SIM, choosethe "Whats new" option under the "Airtel services" menu.Airtel Live! SMS Services: You can enjoy a host of services bysending a keyword as an SMS to 56465! Choose Astrology / 27
  • Horoscope, Cricket, Bollywood / Hollywood / Indi Pop Ring tones.In case you need assistance SMS, Help to 56465. 28
  • Hello TunesTired of that boring old ‘tring tring’ on your phone? Well nowwhen a friend calls, you can make them groove to the hottestnew tracks burning up the music charts with Hello Tunes fromAirtel! You get a wide choice of songs in the Popular & NewArrivals categories that are updated regularly. Whats more youcan directly call the number for your kind of music, e.g. call678005 for English New and 678001 for Hindi New. This woulddirectly take you to your favorite artists Hello Tunes listing.Copy a Hello TuneGet the tune you want, all you have to do is call 55055 andfollow the simple voice instructions to copy your favorite HelloTunes. Once inside the copy feature, just key in the 10-digitAirtel mobile number you want to copy the Hello Tune from andyou get the same Hello Tune assigned to your number.Gift a Hello TuneForget gifting chocolates, flowers and greeting cards. Say it witha song instead! Gift a Hello Tune to that special someone. Justcall 55055 and choose the song that you want to gift. Follow thesimple voice instructions and key in the 10-digit Airtel mobilenumber that you want to gift the Hello Tune to. You will get anSMS notification upon successful receipt of that gift. 29
  • Buy Music - Airtel Music ShopsBuying your favorite Hello Tune or Ring tone is as simple asrecharging your phone with talk time. Simply walk into yournearest Airtel Shop and walk out with your favorite song. Choosefrom Bollywood Hits to Indipop Remixes, Hard Rock to GujratiGarba, Bhajans to Jazz, Bhangra Beats to foot tapping Tamil Hitsfrom a list of more than 18000 songs.Reach us Anytime AnywhereIn case you need assistance, dial 121 - our toll-free number,accessible from anywhere in the country, even while roaming.You can also send us an SMS to 121 or mail us at121@airtelindia.com.*In case of email, mention your mobile no. like, 9810012345, inthe subject of the mail for a quicker response.Airtel PostpaidAirtel welcomes you to a vibrant world of unlimited opportunities.More exciting, innovative yet simple new ways to communicate,just when you want to, not just through words but ideas,emotions and feelings. To give you the unlimited freedom toreach out to your special people in your special way. 30
  • Easy BillingEnjoy a host of rich features only with Airtel e-bill. Register freeon ‘My Airtel’ section and view your monthly bill with call detailsfor last three months. Sort your calls between personal andofficial or analyze your usage, at the click of a button. To changeyour tariff plan call our IVR at 121 and leave a request.Easy Payment Options. Anytime AnywhereYou can choose from a host of convenient payment options onlywith Airtel. Walk into any Airtel relationship centre and makeyour payments by cash or credit card. Drop a cheque at any ofthe drop boxes for making payments or simply log on to My Airtelsection and pay instantly through your credit card. You can alsoopt for easy payment options like:Standing InstructionsYou can give us standing instructions to debit your credit cardaccount for your monthly Airtel bills. All you have to do is fill theStanding Instruction Form and mail, fax it to us or drop it any ofour relationship centres. 31
  • Electronic Clearing SystemFill an ECS form and mail, fax it to us or drop it any of ourrelationship centres to directly debit your bank account for yourmonthly Airtel bill.Pay while roamingAirtel has introduced Anywhere payment that offers you theconvenience of making payments while you roam. Walk in to anyAirtel Relationship Centre in the country, make payments bycash or credit card and enjoy uninterrupted Airtel Services.Credit limitYour pre-set credit limit mentioned on your monthly bill helpsyou keep your mobile charges in control, keeps track of yourusage and ensures that your mobile phone is not misused.Should you exceed your credit limit, you will be informed via avoice or a non-voice message to make an interim payment andreduce your account balance below your credit limit. You mayalso choose to pay us an additional refundable deposit toenhance your credit limit or opt for our convenient paymentmethod of Credit Card Standing instruction .You can also makeuse of ECS facility. 32
  • Strong Network CoverageEnjoy complete clarity when calling with Airtel .It offers you worldclass technology and unbreakable network coverage that spansover 23 circles across the country.Long Distance Calling FacilityCall long distance calls in India and Overseas with STD / ISDfacility on your Airtel phone.Widest Roaming - National and InternationalAirtels roaming service allows you to stay connected and useyour mobile phone to make or receive calls from almostanywhere in India and also over 160 countries, abroad.GPRS - RoamingUse Airtel Postpaids GPRS services, while roaming, to access theinternet and office mails (eg. BlackBerry services), from almostanywhere in India and abroad.Say it. In more than just words, with Services from AirtelAirtel brings you a wide range of Services that will change theway you communicate. Try them and discover a whole new worldof fun and excitement. 33
  • Call management ServicesCall waiting, call hold, call divert and Caller Line IdentificationPresentation, help you do more with your Airtel Postpaidconnection!Conference callYou can hold a teleconference with 5 people simultaneously withCall Conferencing service from Airtel. In fact, you can set up aconference even when the other five are using a landline phone.To know more, call customer service at 121.Missed call alertA missed call alert is a SMS that you will receive for all the callsthat you missed. The SMS will detail the CLI and the time whenthe call was made. To activate, dial *135*2# then press the callbutton and wait for the request to be completed.Voice MailWhen your handset is switched off, or you’re too busy to answerthe phone, Airtel Voicemail will answer your calls and record amessage. The best part is that theres no extra monthly cost forsetting up Voicemail - you just pay for the phone call when youuse the service. 34
  • SMS (Short Messaging Service)Send messages quickly and easily, using text, if its too noisy totalk or you dont have much time. Its the way to Share thoseinteresting one-liners, important reminders and rib-tickling jokes,with anyone, anytime, anywhere in the world.Subscription AlertsGet regular alerts on news, jokes, business, health and films onyour Airtel mobile phone with Subscription Services. SMS<SUB NEWS> for News, <SUB JOKE> for Jokes, <SUB BIZ> forBusiness News, <SUB SPO> for Sports Alerts & <SUB VAASTU>for Vaastu tips to 3333.MMS (Multi-media Messaging Service):Jazz up your messages with pictures, images and video clippings,with MMS from Airtel! To activate MMS on your phone, SMSMMS to 56465 and save service settings.Airtel Live!Make your mobile the most happening entertainment destinationwith Airtel Live! Airtel brings you the latest in entertainment andinformation services, right on your phone! 35
  • Airtel Live! WAP Services: Download the latest ringtones,games, wallpapers, videos and much more. You can also getnews clips, watch live TV and download full songs on you phone!To get Airtel Live! settings on your phone SMS Live to 56465and save the settings that you receive as your preferredconnection. Airtel Live! Portal can be accessed from you GPRSenabled phone, by sending a SMS FUN to 56465.Airtel Live! Voice Services: Just Dial 56465 and say the nameof the service. For e.g. say ‘Ring tones’ to download yourfavourite ring tones. You can also choose a variety of contentoptions like Live Cricket Commentary, latest National /International News, Movie Reviews or Stock Market Updates.Airtel Live! SIM Services: Access loads of fun content andexciting services like cricket, stocks, on your phone at the touchof a few buttons with Airtel Live! SIM based Services on your SIMcard menu. To download new services on your Airtel SIM, choosethe "Whats new" option under the "Airtel services" menu.Airtel Live! SMS Services: You can enjoy a host of services bysending a keyword as an SMS to 56465 ! Choose Astrology /Horoscope, Cricket, Bollywood / Hollywood / Indi Pop Ring tones.In case you need assistance SMS ‘Help’ to 56465. 36
  • GPRS (General Packet Radio Services)Log on to the internet, with GPRS that allows data transmissionat a higher speed. Access e-mails and internet across Airtelspan-India presence using Mobile Office with your phone or aphone and laptop both.Get the EDGEBrowse the internet on your mobile phone with Airtels EDGEservices. Enjoy live TV, enhanced WAP experience and AirtelData Cards on our high speed network.Hello TunesTired of that boring old ‘tring tring’ on your phone? Well nowwhen a friend calls, you can make them groove to the hottestnew tracks burning up the music charts with Hello Tunes fromAirtel! You get a wide choice of songs in the Popular & NewArrivals categories that are updated regularly. Whats more, youcan directly call the number for your kind of music, e.g. call678005 for ‘English New’ and 678001 for ‘Hindi New’. This woulddirectly take you to your favourite artists Hello Tunes listing. 37
  • Copy a Hello TunesLike a tune you want, all you have to do is call 55055 and followthe simple voice instructions to copy your favourite Hello Tunes.Once inside the copy feature, just key in the 10-digit Airtelmobile number you want to copy the Hello Tune from and youget the same Hello Tune assigned to your number.Gift a Hello TunesForget gifting chocolates, flowers and greeting cards. Say it witha song instead! Gift a Hello Tune to that special someone. Justcall 55055 and choose the song that you want to gift. Follow thesimple voice instructions and key in the 10-digit Airtel mobilenumber that you want to gift the Hello Tune to. You will get anSMS notification upon successful receipt of that gift.Buy Music - Airtel Music ShopsBuying your favourite Hello Tune or Ringtone is as simple asrecharging your phone with talktime. Simply walk into yournearest Airtel Shop and walk out with your favourite song.Choose from Bollywood Hits to Indipop Remixes, Hard Rock toGujrati Garba, Bhajans to Jazz, Bhangra Beats to foot tappingTamil Hits from a list of more than 18000 songs. 38
  • Reach us, Anytime AnywhereIn case you need assistance, dial 121 - our toll-free number,accessible from anywhere in the country, even while roaming. *Incase of email, mention your mobile no. like 9810012345 in thesubject of the mail for a quicker response. TARIFFSTRUCTUREPrepaid TariffsAirtel Prepaid Ready Cellular Card and Recharge Cards areavailable, all over the city at over retail outlets including 24-houroutlets. Airtel Prepaid Ready Cellular Card and Recharge Cardsare available, all over the city at over retail outlets including 24-hour outlets. 39
  • Airtel Prepaid Regular449SUK Pulse Rate 60 sec Price of Pack (Rs.) Rs.449 Free Airtime on Pack (Rs.) Nil Incoming Calls (Rs.) Free while in home network Airtel GSM / CDMA Landline / WLL (10 Digit) LOCAL RATES (Rs./min) Rs.1.20 Rs.2.00 Rs.2.40 STD RATES (Rs./min) Rs.2.75 Rs.2.75 Rs.2.75 ISD (Rs./min) USA, Canada, Europe (Fixed Rs.6.40 Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand. Gulf, Europe (Mobile), SAARC Rs.9.20 countries, Africa & Rest of the world Cuba, Sao Tome & Principe, Rs.40.00 Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk Island, Sakhalin SMS (Rs.) Local Rs.1.20 National Rs.2.00 International Rs.5.00 Other Details *Rs 50 Local Airtel-Airtel Mobile talktime per month for 6 months * First month Airtel-Airtel credit within 72hrs of activation & balance credit by 1st week of eve month) *The SMS charge as applicable is per 160 characters * Validity- 24 months. 40
  • POSTPAIDAirtel Postpaid allows you to choose from a variety of affordabletalk plans, convenient payment options and host of rich features.So get set to enjoy a world of limitless possibilities!Reference Tarif Packages (RTP)ON TIME CHARGESActivation Charges Rs. 250Membership Fee Rs. 250Security Deposit NAMONTHLY CHARGES (FIXED) Rs. 524Bill plan Charge Rs. 444Monthly Rental Rs. 150Clip NAMONTHLY CHARGES (OPTIONAL)Clip Rs. 99 Airtel GSM / Landline / CDMA (10 WLL Digit)Local Rates Rs. 1.99 Rs 1.99 Rs 1.99STD RATES50 – 200 Km200 – 500 Km500 + KmISDUSA, Canda, Europe (Fixed Line), Rs. 7.20Austalia, Singapore, Hong Kong,Thailand, Malaysia, Indonesia, newZealandGulf, Europe (Mobile), SAARC Rs 9.99Countries, Africa & Rest of theworldCuba, Sao tome & Principle, Rs. 40.00Guinea Bissau, Diego Garcia,Nauru, Solomon Islands, Vanuatu, 41
  • Cook Island, Tuvalu, Tokelau,Norfolk Island, SakhalinSMSLocal Rs. 1.00National Rs. 2.00International Rs. 5.00Value Added Services (Rs.) Rs. 3.00Airtel One Standard 150ONE TIME CHARGESActivation Charges Rs 250Membership Fee Rs 250 (Converts into security after 24 months)Security Deposit NAMONTHLY CHARGES (FIXED) Rs. 150Bill Plan Charge Rs. 50Monthly Rental Rs. 150Clip NAMONTHLY CHARGES (OPTIONAL)Clip Rs. 50Bissau, Diego Garcia, Nauru,Solomon Islands, Vanuatu, CookIslands, Tuvalu, Tokelau, NorfolkIsland, SakhalinSMSLocal Rs 1.00National Rs 2.00Intentional Rs. 5.00VAS Rs. 3.00 This Bill Plan is also available under Advance Rental of Rs. 799 for 2 years.Local PackAirtel to other local mobiles (non Airtel) At Rs 1 / min Monthly rental Rs 25 per months/- STD Pack 42
  • Airtel to other mobiles (non Airtel) & fixed lines nos. at Rs 2 /min.  Monthly rental Rs 75 per month/-  Special offer for Airtel Telephone service customers for availing Airtel Mobile services If you already have Airtel Telephone service, you can buy a new Airtel Mobile connection under Airtel One Standard 150 Plan.Benefits:  Non security deposit.  No membership / activation fee  Enjoy calls to your Airtel fixed line no. at just 50 P / min.  Monthly rent of Rs 25 for reduced call rates to your Airtel fixed line has been waived off for 1 year.For details, call us 516-12345Advance Rental benefits (1year scheme)Pay an advance rent of Rs 499 and enjoy Airtel One Standard150 plan at Zero monthly rental for one year.Advance rental of Rs 499 gives you a rental discount of Rs 150every month for the next 2 months. All other options andcharges are as per the existing Airtel One Standard 150 Plan. 43
  • Airtel one Standard 299ONE TIME CHARGESActivation Charges Rs 250Membership Fee Rs 250 (Converts into security after 24 months)Security Deposit NAMONTHLY CHARGES (FIXED) Rs 299Bill Plan Charge Rs. 150Monthly Rental Rs. 299Clip NAMONTHLY CHARGES (OPTIONAL)Clip Rs. 50 Airtel GSM / Landline / CDMA (10 WLL Digit)LOCAL RATES Re. 1.00 Rs. 1.00 Rs. 1.00STD RATES50-200Km Rs. 2.00 Rs. 2.40 Rs. 2.40200 – 500 Km Rs. 2.00 Rs. 2.40 Rs. 2.40500 + Km Rs. 2.00 Rs. 2.40 Rs. 2.40ISDUSA, Canda, Europe (Fixed Line), Rs. 7.20Austalia, Singapore, Hong Kong,Thailand, Malaysia, Indonesia, newZealandGulf, Europe (Mobile), SAARC Rs 9.99Countries, Africa & Rest of theworldCuba, Sao tome & Principle, Rs. 40.00Guinea Bissau, Diego Garcia,Nauru, Solomon Islands, Vanuatu,Cook Island, Tuvalu, Tokelau,Norfolk Island, SakhalinSMSLocal Rs. 1.00National Rs. 2.00 44
  • International Rs. 5.00Value Added Services (Rs.) Rs. 3.00You also enjoy 25 FREE local mobile to mobile SMS 45
  • Senior Citizen PlanONE TIME CHARGESActivation Charges Rs. 250Membership Fee Rs. 250 (Concerts into security deposit after 24 months)Security Deposit NAMONTHLY CHARGES (FIXED) Rs. 150Bill Plan Charge Rs. 51 Monthly Rental Rs. 99Clip NACuba, Sao Tome & Principle,Guinea Bissau, Diego Garcia,Nauru, Solomon Islands, Vanuatu,Cook Islands, Tuvalu, Tokelau,Norfolk Island, SakhalinSMSLocal Rs. 1.50National Rs. 2.00International Rs. 5.00VAS Rs. 3.00With Senior Citizen Plan 46
  • You can take 3 Friends and Family numbers:  Airtel to Airtel (1local no.) – Rs. 0.5 / min.  Airtel to Airtel (1 STD no.) – Rs 1.5 / min  ISD calls to US / Canada / South East Asia / Australia / New Zealand) – Rs. 9.99 / minYou also get FREE alert subscription worth Rs 30 / alert or 3months on:  News  Astrology  Health TipsThe SMS charges as applicable is per 160 Characters. 47
  • PROMOTIONAL STRATEGYAirtel to “Touch Tomorrow” with a new brand visionThe Bharti Mobile promoted AirTel cellular service will go in forrepositioning of its brand image. The new brand ethos isportrayed in two distinct fashions - the tag line "TouchTomorrow", which underscores the leading theme for the newbrand vision, followed by "The Good Life", which underscores amore caring, more customer centric organization. Aimed at re-engineering its image as just simply a cellular service provider toan all out information communications services provider, TouchTomorrow is meant to embrace the new generation of mobilecommunication services and the changing scope of customerneeds and aspirations that come along with itThe new communication is about a new dimension in the cellularcategory that goes beyond the Internet, SMS, roaming, IVRS, etcbut which engulfs the whole gamut of wireless digital broadbandservices that will constitute tomorrows cellular services. The newcampaign is in two phases - the first of which will communicateoverall brand philosophy and the second products and services.According to Mr. Jagdish Kini, Chief Operating Officer, BhartiMobile Limited, Karnataka "We are adopting a new brand- 48
  • platform - Touch Tomorrow - not only to reflect our corporateethos but also business strategy".The new identity will have the logo in Red, Black and Whitecolours along with lower case typography to convey warmth.AirTel will incorporate the latest branding in all of itscommunication and will soon be going in for an enhancedpromotional drive to establish the brands presence.LIFE TIME PLANPRE-PAID card users need not worry anymore about rechargingtheir coupons every month. Company has launched a plan thatallows users to take a pre-paid connection with lifetime validityfor a one time payment of Rs. 999. Subscribers availingthemselves of this scheme will also get full talk time for therecharge coupon they purchase and also have the option to buyTaiwanese manufactured Bird mobile handsets for as low as Rs.1,399.The move is aimed at stopping the churn in the pre-paidsubscriber base. Once a subscriber takes this plan, he will alwaysbe an Airtel subscriber whether the mobile is being used or not. 49
  • MARKET SITUATIONAt the time of launchThe first mover in the market was Airtel which launched itsservices in Delhi in Aug 1995 (Informal launch). Essar Cellphonefollowed by launching its services informally in Oct 95. At thispoint of time, the market was at a nascent stage, awarenesslevel was low and both operators independently tried to spreadawareness and educate the peopleOnce the networks were commercially launched, it became anumber game with a multitude of schemes being offered to woocustomers Initially the cellphone was perceived as a statussymbol and utility took a back seat The target segment in Delhiwere corporate and the high income group. The averagecapacity installed was for 1.5 lakh subscribers. This coupled withthe steep license fee paid to DOT put pressure on the operatorsto break-even by rapidly expanding their markets. In the firsttwo years, this led to a number of schemes being offered andprices crashing. 50
  • COMPETITIVE SITUATIONAirtel launched its services before Essar and skimmed themarket picking up the bulk of the high usage premium clients.This is a very competitive industry with the two companiesdifferentiating either on value-added services or price. Airtel isperceived as the high quality provider and has a premium image.Essar, on the other hand, is perceived as the lower end serviceprovider. Airtel positions itself as the market leader on the basisof the number of subscribers. Essar is trying to counter this byemphasising on the reach of its network and the quality of itsservice. However, Essar is somewhat not been very successfullargely due to the inconsistency in advertisingTo promote themselves, both the players have been dependenton tactical advertising However, they have restrained from usingcomparative advertising Hoardings have been a very popularmedium for carrying the advertisements Airtel has also beenadvertising on television using the Bharti Telecom name.SALES DEPARTMENT AND STRATEGYA. Major Accounts (Direct Channel) • Handles corporate (named and famed) accounts • Forecasting of sales • Mapping the accounts • Providing after sales support to the subscribers. 51
  • • Maintaining call reports for records. • Providing Feedback to the marketing department regarding the requirement of the market.B. IDC (indirect Channel) • Handling distribution • Maintaining records and level check of the channel partner • Liaisoning between the channel partner and the company. • Target achievement • Training the executives of the channelC. Distribution Support 1. Logistics • Monitor handset and SIM card requirements of channel partners and co-ordinate with stores • Settle areas of concerns such as incentive claims of channel partners2. Rental • Provide cellular services (SIM cards) on rent. • Provide cellular phones on rent • Useful for people visiting Delhi for a short interval.3 Telesales • Call customers and generate sales lead. • Follow up with the customers, if they need any assistance 52
  • • Pass on the sales lead to the channel department.4 Audit • Consultant to the AirTel showrooms. • Monitor the operations at the AirTel distribution outlets Organize training.5. Retail • Locate shops to open retail counters. • Monitor the retail counters.MARKET SEGMENTATIONSegmentation is beneficial because of better predictability of thetarget consumer group, minimization of risk exposure, betterability to fine-tune a product / service to the requirement oftarget buyer and the resultant ease in designing a properdesigning marketing mix strategy In this case segmentation is onthe bade of income.In evaluating different market segments the company looks attwo factors The overall attractiveness of the segments and thecompanys objectives & resources The present market forCellular phones, pagers and conventional phones is as follows Premium Middle Economy Upper Lower Upper Lower Upper LowerCellular Phones X X X - - -Pager X X X X - -Conventional X X X X X -Phones 53
  • X Market Segment TargetedTARGET MARKET SEGMENTAirtel has targeted the premium and upper middle class. Therationale behind it is that only those segments should betargeted who value time and have the paying capacity. It Is alsoplanning to target the business tourists during their stay in thecapitalAbout 60% of the clientele are top executives of corporatehouses. About 15% are foreign organisations and the rest areprofessionals and small businessmen. During the introductionstage there was intense pressure to get consumers across tohook up with their brand, because getting them to switch brandloyalty later would be hardSo far Airtel marketers have been concentrating totally on thebusiness executive class but now that the basic viable volumeshas beer) built up and prices have declined to a certain extentthey are planning to venture further a field.POSITIONINGThe product is sought to be positioned as a business efficiencytool. a lifestyle revolution and a status symbol The emphasis is toremove misconception that the cellphone is an expensive means 54
  • of communication and drive home the point that the cellphone isactually a day-to-day utilityPRODUCT POLICY AND PLANNINGThe product or service is the heart of the marketing mix.Without a product or a service customers needs cannot besatisfied.The basic product promise by Airtel is mobility. Airtels mainmarketing strategy is to be a first mover all the time. It hasrecognised the significance of making the first move-- because inthe field of Communication & Information Technology changesoccur at a tremendous pace.Effective product segmentation has to be carried on continuouslybecause basic services can be and will be copied and in timebecome expected component of the product. Airtel seeks tocarry out this segmentation through provision of new informationservices and making new facilities available. The product policyand planning depends on the stage of the product life cycle. Atpresent the cellular phone market has reached the maturitystage. Since, the premium segment is nearing saturation thecompany targeting the upper middle and middle-middle class. Inorder to do so Airtel is trying to optimise the price performancepackage by offering suitable "product bundling". 55
  • This involves the selection of the suitable hardware (handset)and its software (its services.) with reasonable price in order todeliver maximum price performance to its customers. Inaddition, it offers free Airtime services and other concessions tomake the prices and thus the product more attractive. It hasalso opened a 24 hours customer service.Only price doesnt serve as an effective differentiator, valueadded services become the effective differentiator.The "Value Added Services" provided from Airtel are:-1). Voice Mail serviceThis system is similar to the answering machine - if the user isnot able to answer a call for some reason the caller can leavemessages in the voice mail box which can be later retrieved bythe userii) Short Message ServiceThe short message service is like a two-way pager. It gives anoption of sending and receiving text messages directly from onemobile phone to another without the intervention of an operator.iii) Mobile Fax 1 Data Service 56
  • This service helps the subscriber to send and receive Faxes,access E-mail, download computer files from other systems andremotely log on to another computer and surf the Internet.iv) Cash CardThe cash card is a pre-paid and pre-activated card which allowsthe buyers to buy air time in advance. All it requires is thepayment of an initial amount. This is a useful service for peoplewho travel to Delhi often and those who want to control theexpenses on their calls.v) Caller IDDisplays calling persons number.vi) Outgoing call restrictionTo prevent or limit outgoing calls, for example, in peak hours.Also possible to exclude one or several countries, or anygeographical region, to permit only local calls, or to limit theoutgoing calls to a listed number.viii) Call forwardIncoming calls can be forwarded to another fixed or mobilephone.Besides these some other services provided by Airtel are - Callconferencing, Call Broadcast et cetera. 57
  • It is in the operators -Interest that they not only get manysubscribers but also get them to use the mobile facilityfrequently. In the early stages getting increases to subscribemay be easier than getting them to talk since they will find itcostlier to use the mobile phone as compared to a conventionalphone [if is believed that initially cellphones would be used buy]viii) Roaming FacilityRoaming facility is available while the subscriber is travelling.The billing is done in the home network (Delhi). Roaming facilityis available manually* as well as semi-automatically. Once asubscriber is In any other city or country, where a GSM networkis available, simply insert the SIM card of the local operator Intoyour handset and start talking.* Manual Roaming means a separate SIM card is provided for each city** Semi automatic roaming means one card has the facility for different cities.AIRTELS MARKETING ORIENTATION.Since this is a high-involvement expensive product, the serviceprovider has to fully take care of the customers.a) They take personal responsibility to "get" the answer for any problem faced by the customer 58
  • b) They anticipate customers problems and take pro-active steps to prevent themc) They give answers to the questions & requests, quickly & efficiently.d) They have a positive tone & manner while interacting with customers.e) They end the interaction on a positive or a humorous note- making the last 30 seconds count.Airtel realises that attracting people Is easy but converting theminto loyal customers is hard, hence emphasis is on maintaining aSmiling and a Friendly Atmosphere to please and retain thecustomer.PRICE AND PRICING POLICYAIRTEL has realised that the Indian market is price sensitive.Therefore it care of the has come up with various innovativetariff schemes to take needs of different category of customers-Generally, the cellular services are more expensive than the landline based telephone services. This is due to the reason that theoperating companies are required to pay a fee to thegovernment for using airtime. 59
  • MARKETING STRATEGY ADOPTED BY BHARTIBharti has spent a considerable amount on advertising its mobilephone service, Airtel. Besides print advertising, the companyhad put up large no of hoardings and kiosks in and around Delhi.The objective behind designing a promotion campaign for the‘Airtel’ services is to promote the brand awareness and to buildbrand preferences.It is trying to set up a thematic campaign to build a strongerbrand equity for Airtel. Since the cellular phone category itself istoo restricted, also the fact that a Cellular phone is a highinvolvement product, price doesnt qualify as an effectivedifferentiator. The image of the service provider counts a greatdeal. Given the Cell phone category, it is the network efficiencyand the quality of service that becomes important. What nowthe buyer is looking at is to get the optimum price-performancepackage. This also serves as an effective differentiatorBrand awareness is spread through the campaigns and brandpreference through brand stature. Airtels campaign in thecapital began with a series of teaser hoardings across the city,bearing just the companys name and without explaining whatAirtel was. In the next phase the campaign associated Airtel withCellular only thereafter was the Bharti Cellular connection 60
  • brought up. Vans with Airtel logos roamed the city, handing outbrochures about the company and its services to all consumers.About 50,000 direct callers were sent out. When the name waswell entrenched in the Delhiites’s mind, the Airtel campaignbegan to focus on the utility of Cellphone. In the first fourmonths alone Airteis advertisement spend exceeded Rs. 4crores.As of today the awareness level Is 60% unaided. This impliesthat if potential or knowledgeable consumers are asked to namea Cellular phone service provider that is on the top of his/hermind 60% of them would name Airtel. As for aided it -is 100%(by giving clues and hints etc.).Brand strength of a product or the health of a brand is measuredby the percentage score of the brand on the above aided and theunaided tests. The figures show that Airtel is a healthy and athriving brand.Every company has a goal, which might comprise a sales targetand a game plan with due regard to Its competitor. Airtel scampaign strategy is designed keeping in mind its marketingstrategy. The tone, tenor and the stance of the visual ads aredesigned to convey the image of a market leader in terms of itsmarket share. It tries to portray the image of being a "firstmover every time" and that of a "market leader". 61
  • The status of the product in terms of its life cycle has justreached the maturity stage in India. It is still on the rising part ofthe product life cycle curve in the maturity stage.The diagram on the left hand side shows the percentage of theusers classified into heavy, medium and low categories. Theright hand side shows the revenue share earned from the threetypes of users.Airtel, keeping in mind the importance of the customer retention,values its heavy users the most and constantly indulges inservice innovation. But, since heavy users comprise only 15 -20% of the population the other segment cannot be neglected.The population which has just realised the importance of cellularphones has to be roped in. It is for this reason that the serviceprovider offers a plethora of incentives and discounts. Concertslike the "Freedom concert" are being organised by Airtel in orderto promote sales. The media channel is chosen with economy inmind. The target segment is not very concrete but, there is anattempt to focus on those who can afford. The printadvertisements and hoarding are placed in those strategic areaswhich most likely to catch the attention of those who need acellular phone. The product promise (which might cost different1 higher) is an important variable in determining the targetaudience. 62
  • Besides this, other promotional strategies that Airtel has adoptedare .(i) People who have booked Airtel services have been treated to exclusive premiers of blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent fliers programs.(ii) There have been educational campaigns, image campaigns, pre launch advertisements, launch advertisements, congratulatory advertisements, promotional advertise-ments, attacking advertisements and tactical advertisements. 63
  • DISTRIBUTION Company Franchisee Distributor Dealers Dealer Customer CustomerThe- company whose operations are concentrated in and aroundDelhi. It 27 Franchisees and 15 Distributors- They also have 8instant access cash card counters- Each franchises or distributorcan have any number of dealers under him as long as the personis approved by the Airtel authority. Each franchises has to investRupees Ten Lakhs. to obtain a franchise and should employ anofficer recruited by Airtel. This person acts as an liaison betweenthe company and the franchises. The franchises can it anynumber of dealers as long as their territories do not overlap. Butunfortunately Airtel has not been very successful in controllingterritorial overlaps of dealers. The franchises can carry out his 1her own promotional strategy. For this the. company contributes 64
  • 75% of the money and the franchises contributes 25% of themoney. The dealers under the franchisee receive the samecommission. The franchises and the dealer obtain the feedbackfrom the customers and they are sent through the liaison officeron a day-to-day basis to Airtel. The dealer has to invest Rupees.One Lakh as an initial investment. The dealer of Airtel are notallowed to provide any other operators service.Target set for distributors and the dealers is 100 -150 activationsper month. Hence the dealers can also go for their ownpromotions like banners and discounts on festivals etc. Thedealer provides service promptly. The consumer on providingthe bill of purchase for the handset and proof of residence hasonly to wait an hour before getting connected. The staff of thedealers and the franchisees are provided training by the Airtelpersonnel.The complaints encountered by the franchisees and dealers areeither handset being non-functional or the SIM Card not gettingactivated. Anything more complicated is referred to the mainAirtel office in Delhi. 65
  • WHAT DOES AIRTEL OFFER?With Airtel, the subscriber wouldnt just get a personal phonethat lets him/her be in touch, always, but also gets a host ofbenefits that let him/her manage his/her time like never before.An Airtel subscriber is provided with a Subscriber Identity ModuleCard (SIM card) - that is the key to operating his/her cellularphone. His card activates Airtel cellular services and contains acomplete micro-computer chip with memory to enable one toenjoy ones cellular phone thoroughly. Each SIM card contains aPIN code (Personal Identity Number) which may be entered byone. Just plug your SIM card into your cellular phone, enter thePIN code and it becomes your personal phone.PRODUCT LIFE CYCLEThe pattern of cellphone subscriber growth observed elsewherein the world reveals that the growth in the market is Initially slowfollowed by a sharp acceleration, but so far that has nothappened in India. As far as the Product Life Cycle is concerned.Indians are at the beginning of the maturity stage. 66
  • Introduction Growth MaturityMARKETING OBJECTIVESCreate product Maximise market Maximise profitsawareness and trial share whole defending market shareStrategiesProduct Offer a basic Offer value Increase in product/ added services number of service. value added services.Price Charge cost- Price to Price to match plus penetrate or best market competitorsDistribution Build selective Build Intensive Build more distribution distribution. intensive distribution.Advertising Build product Build Stress brand awareness awareness and differences and among early interest in the benefits. adopters and mass market dealers.Sales Use heavy sales Increase to Increase to 67
  • Promotion promotion to build and encourage entice people maintain brand- to subscribe. relationships switching. with customers. 68
  • OBJECTIVES OF THE STUDYObjectives:To study the importance and development of tele – communication industry in today’s scenario.To understand the various Marketing Strategies which Airtel has adopted to survive in highly competitive cell phone industry.To make a comparative study of the major players in Indian Service Provider. 69
  • RESEARCH METHODOLOGYThe methodology adopted for this project is exploratory in naturesince there is no hypothesis that has to be tested. Theconclusions have been drawn by exploratory research work.There have been two sources of information collected:a) Primary SourcesI have met retailers of the Airtel of the company and have beenable to get first hand information regarding the product, itsfeatures and the buying patterns of the product. Their input hasbeen valuable.b) Secondary SourcesSecondary source has played a vital role to play in this report. Agood amount of data has been collected from various publishedarticles and reports found in magazines and journals. Anothervital source has been the Internet and particularly the companiesown website. 70
  • LIMITATIONSEvery attempt will be taken to obtain the error free andmeaningful result but as nothing in this world is 100% perfect Ibelieve that there will still the chance for error on account offollowing limitations-(1) Respondent’s unavailability.(2) Time pressure and fatigue on the part of respondents and interviewer.(3) Courtesy bias. 71
  • FINDINGS1. Do you believe that India is potentially one of the mostexciting mobile service providers in the world?Company Yes NoAirtel 4 1Vodafone 4 1Idea 4 1MTNL 4 1As according to the above table 16 (80%) out of the total 20interviewed people in all the above four specified Indian mobileservice providers are of belief that India is potentially one of themost exciting mobile service providers in the world, whereassome 4 (20%) of them do not agree to this view. No 1 1 1 1 Yes 4 4 4 4 0 2 4 6 8 10 12 14 16 18 AirTel Vodafone Idea MTNL 72
  • 2. Do you find that the government’s telecom policy hashad the most radical impact on the development ofmobile service providers? Company Yes No Airtel 4 1 Vodafone 3 2 Idea 3 2 MTNL 5 --As according to the above table 15 (75%) out of the total 20interviewed people in all the above four specified Indian mobileservice providers find that the government’s telecom policy hashad the most radical impact on the development of mobileservice providers, whereas some 5 (25%) of them deny this. 5 4.5 4 3.5 AirTel 3 Vodafone 2.5 Idea 2 MTNL 1.5 1 0.5 0 Yes No 73
  • 3. Do you believe that one of the challenges facing mobileoperators in India is the diversity of the coverageregions? Company Yes No Airtel 2 3 Vodafone 3 2 Idea 3 2 MTNL 2 3As according to the above table 10 (50%) out of the total 20interviewed people in the mobile service providers are of beliefthat one of the challenges facing mobile operations in India is thediversify of the coverage regions, whereas interestingly another10 (50%) of them deny this. 3 2.5 2 AirTel Vodafone 1.5 Idea MTNL 1 0.5 0 Yes No 74
  • 4. To what extent, does you find that mobile serviceproviders is a very complex standard?Company To some extent To great extent (1-5) (6-10)Airtel 3 2Vodafone 2 3Idea 2 3MTNL 3 2As according to the above table 10 (50%) out of the total 20interviewed people in all the above four major the mobile serviceproviders in Indian Cellular industry find only to some extent thatGSM is a very complex standard, whereas the another 10 (50%)respondents find to great extent that mobile service providers isa very complex standard. 3 2.5 AirTel 2 Vodafone 1.5 Idea 1 MTNL 0.5 0 To some extent To great extent 75
  • CONSUMER LEVEL1. Do you believe that mobile service providers comesclose to fulfilling the requirements for a personalcommunication system? Company Yes No Airtel 9 1 Vodafone 8 2 Idea 8 2 MTNL 5 5As the above shows 30 (75%) out of total 40 respondents are ofthe belief that mobile service providers comes close to fulfillingthe requirements for a personal communication system, whereas10 (25%) of them are in no way to this belief. 3 2 No 2 2 MTNL Idea Vodafone 2 AirTel 3 Yes 3 3 76
  • 2. Do you find that mobile service providers as the mostexciting and satisfying mobile standard? Company Yes No Airtel 9 1 Vodafone 7 3 Idea 8 2 MTNL 8 2As the above shows 32 (80%) out of total 40 respondents findthat mobile service providers as the most exciting and satisfyingmobile standard, whereas the remaining 8 (10%) respondentsdeny this. No 1 3 2 2 Yes 9 7 8 8 0 5 10 15 20 25 30 35 AirTel Vodafone Idea MTNL 77
  • 3. Do you believe that your service provider has agenuine commitment to creating a modern and efficientcommunications? Company Yes No Airtel 10 -- Vodafone 8 2 Idea 10 -- MTNL 8 2As the above shows 36 (90%) out of total 40 respondents are ofthe belief that their service providers have a genuinecommitment to creating a modern and efficient communicationswhereas the remaining 4 (10%) respondents deny this. 2 0 No 2 0 MTNL Idea Vodafone 8 AirTel 10 Yes 8 10 SWOT ANALYSIS 78
  • STRENGTHS• Cost advantage• Current leaders in quality service• Largest distribution network• Ability to constantly innovate• Highly skilled workforce• Entrepreneurial zeal• Airtel’s increased equity and market cap.WEAKNESSES• To prove credibility• Price pressures• Need for Government support• Awareness• Sales and Marketing 79
  • OPPORTUNITIES• To sustain passion and commitment• Airtel’s market share increasing at other service provider expense. Thus opportunity to wipe it out.• Attain higher value services• Collaborative business needs to be explored• Vertical repeatable solutions.• Low penetration level in rural markets.THREATS• Foreign investment• Global trends moving from GPS to WLL.• Lack of global parity in telecom tariff• Other competition 80
  • CONCLUSION From above the details I conclude that 70% Airtel userspreferred to remain with Airtel. Also good no. of users who werewilling to switch from their respective subscribers showedinterest in Airtel. Hence, these statistics imply a bright future forthe company. Also the company is now providing more serviceslike the door to door services which is you dial the Airtelcustomer care and would like to send someone flowers the Airtelcompany delivers those flowers to the person concerned. AlsoAirtel is providing free text messaging service and free voicemail service. Call conferencing is also another feature Airtelprovides. 81
  • BIBLIOGRAPHY• Bernard J. T. Mallinder. Specification Methodology Applied to the GSM System. In EUROCON 88, June 2005.• Seshadri Mohan and Ravi Jain. Two User Location Strategies for Personal Communication Services. IEEE Personal Communications. 1(1), 1994.• Moe Rahnema. Overview of the GSM System and Protocol Architecture. IEEE Communications Magazine. April 1993.• C. Watson. Radio Equipment for GSM. In D.M. Balston and R.C.V Macario, editors, Cellular Radio Systems, Artech House, Boston, 1993.• Robert G. Winch. Telecommunication Transmission Systems. McGrawHill New York, 1993.• Vodafone• Airtel• Idea• MTNL 82
  • QUESTIONNAIRENAME: ____________________________________ADDRESS: ____________________________________OCCUPATION: ____________________________________ 1. Do you believe that India is potentially one of the most exciting mobile service providers in the world?Company Yes NoAirtelVodafoneIdeaMTNL2. Do you find that the government’s telecom policy hashad the most radical impact on the development ofmobile service providers?Company Yes NoAirtelVodafoneIdeaMTNL3. Do you believe that one of the challenges facing mobileoperators in India is the diversity of the coverageregions?Company Yes NoAirtelVodafone 83
  • IdeaMTNL4. To what extent, does you find that mobile serviceproviders is a very complex standard?Company To some extent To great extent (1-5) (6-10)AirtelVodafoneIdeaMTNL 84
  • CONSUMER LEVEL1. Do you believe that mobile service providers comesclose to fulfilling the requirements for a personalcommunication system? Company Yes No Airtel Vodafone Idea MTNL2. Do you find that mobile service providers as the mostexciting and satisfying mobile standard? Company Yes No Airtel Vodafone Idea MTNL3. Do you believe that your service provider has agenuine commitment to creating a modern and efficientcommunications? Company Yes No Airtel Vodafone Idea MTNL 85