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Bharti airtel Document Transcript

  • 1. FREE ONLINERESEARCHPAPERSNavigationSign InCreate AccountForgotten PasswordAbout UsSubscription CancelationADVERTISING STRATEGY OF BHARTI TELEVENTURES LTDThis report on Airtel not just give description about thecompany but it also talks about the various advertising strategyadopted by the company.SWOT analysis of Airtel helps to find out the weak points of thecompany and to find out the way to overcome this problem.We are in the era of entertainment through mobile handsets.Downloading a ring tone watching your favorite movie oftracking cricket score the list of activity that you can do usingyour cell phone is endless. To supplement stagnant voicerevenues cellular operator are now turning to VAS to boostrevenues in both data and value added voice service. Airtel has
  • 2. deep rooted presence in the Indian telecom sector throughthere wide product offerings and excellent distribution networkIn this report I have tried to analyze the present scenario ofIndian telecom sector the real aim of the project is to study theeffectiveness and response towards advertisement provided byAirtel but many sub objectives are also included under thisproject so as to make it comprehensive one.I complement this with the internal study of the companies –history , vision business areas etc to analyze how well poisedthe company are to complete or rather just exist in this marketthat is proving itself to be the most competitive in postliberalization Indian economy.CHAPTER-IIINTRODUCTIONINTRODUCTIONTelecom giant Bharti Airtel is the flagship company of BhartiEnterprises. The Bharti Group, has a diverse business portfolioand has created global brands in the telecommunication sector.Bharti has recently forayed into retail business as Bharti RetailPvt. Ltd. under a MoU with Wal-Mart for the cash & carrybusiness. It has successfully launched an international venturewith EL Rothschild Group to export fresh agricultural productsexclusively to markets in Europe and USA and has launchedBharti AXA Life Insurance Company Ltd under a joint venture
  • 3. with AXA, world leader in financial protection and wealthmanagement.Airtel comes to you from Bharti Airtel Limited, India’s largestintegrated and the first private telecom services provider with afootprint in all the 23 telecom circles. Bharti Airtel since itsinception has been at the forefront of technology and hassteered the course of the telecom sector in the country with itsworld class products and services. The businesses at BhartiAirtel have been structured into three individual strategicbusiness units (SBU’s) - Mobile Services, Airtel TelemediaServices & Enterprise Services. The mobile business providesmobile & fixed wireless services using GSM technology across23 telecom circles while the Airtel Telemedia Services businessoffers broadband & telephone services in 94 cities. TheEnterprise services provide end-to-end telecom solutions tocorporate customers and national & international long distanceservices to carriers. All these services are provided under theAirtel brand.Business DivisionsMobile : Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile serviceprovider in the country, based on the number of customers.Internet: The group offers high speed broadband internet witha best in class network. With Landline services in 94 cities wehelp you stay in touch with your friends & family and the world.Data connectivity : The group focuses on deliveringtelecommunications services as an integrated offering including
  • 4. mobile, broadband & telephone, national and internationallong distance and data connectivity services to corporate, smalland medium scale enterprises.Fiber cables : The Company compliments its mobile andbroadband & telephone services with national andinternational long distance services. It has over 35,016 routekilometers of optic fibre on its national long distance network.For international connectivity to east, it has a submarine cablelanding 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 15other global telecom operators.MobilePrepaid : Enter the world of limitless possibilities with AirtelPrepaid. The service that helps you give, words to every feeling,an expression to every emotion.Postpaid : Life becomes much simpler with your Airtel Postpaid.It gives you the unlimited freedom to reach out to people inyour special way.HISTORYBharti Airtel is one of Indias leading private sector providers oftelecommunications services based on an aggregate of71,777,448 customers as on June 30, 2008, consisting of69,383,716 GSM mobile and 2,393,732 Bharti Telemediasubscribers.
  • 5. The businesses at Bharti Airtel have been structured into threeindividual strategic business units (SBU’s) - mobile services,telemedia services (ATS) & enterprise services. The mobileservices group provides GSM mobile services across India in 23telecom circles, while the ATS business group providesbroadband & telephone services in 94 cities. The enterpriseservices group has two sub-units - carriers (long distanceservices) and services to corporates. All these services areprovided under the Airtel brand.Company shares are listed on The Stock Exchange, Mumbai(BSE) and The National Stock Exchange of India Limited (NSE).CHAPTER-IIICOMPANY PROFILEFact sheetName Bharti Airtel Limited.Business Description Provides mobile, telemedia services (fixedline) and enterprise services (carriers & services to corporates)Established July 07, 1995, as a Public Limited CompanyProportionate RevenueRs. 270,122 million (year ended March 31, 2008-Audited) Rs.184,202 million (year ended March 31, 2007-Audited)As per Indian GAAP AccountsProportionate EBITDA Rs. 114,018 million (year ended March31, 2008 - Audited)Rs. 74,407 million (year ended March 31, 2007 - Audited) As perIndian GAAP AccountsShares in Issue 1,898,020,804 as at June 30, 2008
  • 6. Listings The Stock Exchange, Mumbai (BSE) The National StockExchange of India Limited (NSE)Market Capitalisation Market Capitalisation (as on September18, 2008) Approx. Rs. 1,443 billion Closing BSE share price = Rs.760.35Customer Base 69,383,716 GSM mobile and 2,393,732telemedia customers (Status as at month ended June 30, 2008)Operational Network Provides GSM mobile services in all the 23telecom circles in India, and was the first private operator .Bharti Tele-Ventures Limited was incorporated on July 7, 1995for promoting investments in telecommunications services. Itssubsidiaries operate telecom services across India. Bharti Tele-Ventures is Indias leading private sector provider oftelecommunications services based on a strong customer baseconsisting of approximately 9.03 million total customers whichconstitute, approximately 8.28 million mobile andapproximately 750,000 fixed line customers, as of August 31,2004.Investor Relations?Creating value for our customers, employees, investors,partners, vendors and the society at large lies at the root of ourfundamental business strategy. Our core principles of trust andtransparency have come a long way in helping us develop andnurture long-term relationships with our key stakeholders. Ourperformance exudes from our belief in and commitment to thetelecom sector; and translates into creating innovative excitingopportunities for one and all.
  • 7. Corporate Governance?Bharti Tele-Ventures Limited firmly believes in the principlesof Corporate Governance and is committed to conduct itsbusiness in a manner, which will ensure sustainable, capital-efficient and long-term growth thereby maximizing value for itsshareholders, customers, employees and society at large.Companys policies are in line with Corporate Governanceguidelines prescribed under Listing Agreement/s with StockExchanges and the Company ensures that various disclosuresrequirements are complied in letter and spirit for effectiveCorporate Governance.?During the financial year 2003-04, your Company has beenassigned highest Governance and Value Creation (GVC) ratingviz. Level 1 rating by CRISIL, which indicates that thecompanys capability with respect to creating wealth for all itsstakeholders is the highest, while adopting sound CorporateGovernance practicesBoard of Directors?The Board of Directors of the Company has an optimum mix ofExecutive and Non-Executive Directors, which consists of threeExecutive and eleven Non-Executive Directors.?The Chairman and Managing Director, Mr. Sunil Bharti Mittal,is an Executive Director and the number of IndependentDirectors on the Board is more than 50% of the total Boardstrength. The independence of a Director is determined on the
  • 8. basis that such director does not have any material pecuniaryrelationship with the Company, its promoters or itsmanagement, 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 bestinterest of the Company.Boards Members by RankingSunil Bharti Mittal Chairman and Managing DirectorRajan Bharti Mittal DirectorAkhil Gupta Joint Managing DirectorRakesh Bharti Mittal DirectorChua Sock Koong DirectorPulak Chandan Prasad DirectorBashir Abdulla Currimjee DirectorMauro Sentinelli DirectorProfessor V.S Raju DirectorO’Sullivan DirectorKurt Hellstrom DirectorN. Kumar DirectorAjay Lal DirectorFrancis Heng DirectorArun Bharat Ram DirectorAudit Committee
  • 9. The Audit Committee of the Board deals with all mattersrelating to financial reporting, internal controls, riskmanagement, related party transactions etc. and reports backto the Board on the matters, which among others, include?Reviewing the Company’s financial reporting processes andsystems.?Recommending the appointment and removal of statutoryauditors, fixation of audit fee and related expenses.?Reviewing the Company’s financial and risk managementpolicies.?Reviewing with management the half-yearly and annualfinancial statements, before submission to the Board, focusingprimarily on:?Changes in accounting policies and practices;?Major accounting entries, qualifications and accounting issuesbased on the managements discretion and judgment;?Compliance with the accounting standards;?Compliance with the stock exchange and legal requirements,concerning financial statements;?Any related party transactions; and
  • 10. ?Adequacy and effectiveness of internal audit processes andsystems.?The un-audited/audited quarterly financial results of theCompany are also specifically reviewed by the Audit Committeebefore these are submitted to the Board for approval. Minutesof each Audit Committee meeting are placed before the Boardfor information.Human Resource (HR)/ Remuneration CommitteeThe Human Resource Committee of the Board discharges thefunctions of the remuneration committee, along withspecifically looking into the following areas:?Framing policies and compensation packages of topexecutives; including salary adjustments, incentives, bonuses,promotions, stock options and performance targets.?Remuneration of Directors?Strategies for attracting/retaining employees, and employeedevelopment programs?Key issues referred by the BoardESOP Compensation CommitteeThe Compensation Committee of the Board has beenconstituted in accordance with SEBI (Employee Stock Option
  • 11. Scheme and Employee Stock Purchase Scheme) Guidelines,1999 for administration and superintendence of EmployeeStock Option Plan (ESOP) of the Company.Scope of the Compensation CommitteeFormulating policies and procedures to ensure that there is noviolation of SEBI (Insider Trading Regulations) and (Prohibitionof Fraudulent and Unfair Trade Practices relating to SecuritiesMarket) Regulations by any employee.CHAIRMAN PROFILESunil Bharti MittalChairman & Managing Director Since October 2001Board director since: July 1995Age: 49 yearsSunil Bharti Mittal is the Chairman & Managing Director ofBharti Airtel Ltd. head quartered at New Delhi, India.Sunil Bharti Mittal started his career at a young age of 18 aftergraduating from Punjab University in India and founded Bharti,with a modest capital, in the year 1976. Today, at 49 he heads asuccessful enterprise, amongst the top 5 in India, with a marketcapitalization of over US$ 40 billion and employing over 30,000people.
  • 12. Sunil Bharti Mittal is an alumnus of Harvard Business School,MA, USA.Sunil Bharti Mittal has been conferred one of the highestcivilian award – Padma Bhushan.Sunil Bharti Mittal has been conferred the degree of Doctor ofScience (Honoris Causa) by the G B Pant University ofAgriculture & Technology.Sunil Bharti Mittal is an Honorary Fellow of “The Institution ofElectronics and Telecommunication Engineers (IETE)".OBJECTIVESAs set out in the Memorandum of Association of Bharti Tele-Ventures, our main objects are as follows:1. To promote and establish companies, funds, associations orpartnerships for providing telecom networks and/or to run andmaintain telecom services like basic/fixed-line services,cellular/mobile services, paging, videotext, voice mail and datasystems, private switching network services, transmissionnetwork of all types; computer networks i.e. local areanetwork, wide area network, electronic mail, intelligentnetwork, multimedia communication systems or thecombinations thereof and for execution of undertakings, works,projects or enterprises in the telecom industry whether of aprivate or public character or any joint venture with anygovernment or other authority in India or elsewhere and to
  • 13. acquire and dispose of shares/securities in such companies, andfunds and interest in such associations or partnerships.2. To provide telecom networks and to run and maintaintelecom services like basic/fixed-line services, cellular/mobileservices, paging, videotext, voice mail and data systems, privateswitching network services, transmission networks of all types,computer networks like local area network, wide area network,electronic mail, intelligent network, multimedia communicationsystems or combinations thereof.3. To carry on the business of manufacturers, merchants,dealers, distributors, importers, exporters, buyers, sellers,agents and stockists, and to market, hire, lease, rent out,assemble, alter, install, service, design, research and improve,develop, exchange, maintain, repair, refurnish, store andotherwise deal in any manner in all types of telephoneexchanges, telephone instruments -whether corded, cordless,mobile or of any other kind; tele-terminals, fax machines,telegraphs, recording instruments and devices, telephonemessage/answering machines and devices; dialling machines,trunk dialling barring devices, wireless sets and other wirelesscommunication devices like radio pagers, cellular phones,satellite phones etc; telecom switching equipments of all kinds;telecom transmission equipments of all kinds, test equipments.VISIONBY 2010 AIRTEL WILL BE THE MOST ADMIRED BRAND IN INDIA:?LOVED BY MORE CUSTOMERS.
  • 14. ?TARGETED BY TOP TALENT.?BENCHMARKED BY MORE BUSINESS.BHARTI’S MISSIONTo be globally admired for telecom services that delightcustomers.We will meet global standards for telecom services that delightcustomers through:• Customer Service Focus• Empowered Employees• Cost Efficiency• Unified Messaging Solutions• Innovative products and services.Error- free service deliveryACHIEVEMENTS• First to launch Cellular service on November 1995.• First operator to revolutionaries the concept of retailing withthe inauguration of AirTel Connect (exclusive showrooms) in1995.• First to introduce push button phone in India.• First to expand its network with the installation for secondmobile switching center in April, 1997 and the first to introducethe Intelligent Network Platform First to provide Roaming to itssubscribers by forming an association called World 1 Network.
  • 15. • First to provide roaming facility in USA. Enjoy the mobileroaming across 38 partner networks & above 700 citiesMoreover roam across international destinations in 119countries including USA, Canada, UK etc with 284 partnernetworks.• BHARTI announces aggrement with VODAFONE marking theentry of the Worlds Largest Telecom Operator into India• Bharti Enterprises and AXA Asia Pacific Holdings Limitedannounce Partnership for a life insurance joint venture in India• Airtel Launches future factory - Centres of Innovation toIncubate Pioneering Mobile Applications• 16 states, 600 million people. Only Indias leading mobileservice offers you the truly freedom-packed Prepaid!• It is also the first company to export its products to the USA.BHARTI announces agreement with VODAFONE marking theentry of the Worlds Largest Telecom Operator into India• Vodafone to invest approximately Rs. 6,700 crores (approx.USD 1.5 bn.) to acquire around 10% in Bharti Tele-Ventures Ltd.• Bharti Enterprises, SingTel and Vodafone to take Bharti Tele-Ventures Ltd. to unassailable leadership position in India• The largest single foreign investment ever in the history ofIndia• The largest investment in the Indian telecom sector• Bharti establishes its supremacy in the Indian telecommarket, having attracted Asia’s best – SingTel, and now world’sbest – Vodafone.• Bharti set to gain global leadership in the telecom sector
  • 16. • Bharti Enterprises continues to hold shareholding andmanagement control in Bharti Tele-Ventures.AirTel: Appropriating the value of expressionOver the last couple of years, the market has grownconsiderably, with deeper penetration and wider usage of voiceand data services, accompanied by much higher competitiveintensity," Atul Bindal, chief marketing officer, BhartiTeleVentures, expands on this. "In this context, differentiatingmerely on network, coverage and SMS is just not enough. Youneed to go beyond all the rational identifiers - which areprerequisites in any case - and connect at a deeper level. Weneeded a strong differentiator in an increasingly commoditizedand crowded market. We found this differentiator in a corehuman truth that defines our category - which is that there aremoments when you need to make your point, when you needto be heard. Expressing and communicating are perhaps two ofthe most basic emotions. AirTel enables you to make your pointin the most expressive way, anytime, anywhere. The campaignis towards owning this through Express yourself. We believeExpress yourself allows us to connect at a deeper level andcreate a long-term platform for the brand."For AirTel, the challenge also lay in presenting a unified face tothe consumer. This assumes significance when viewed in thelight of the companys pre- and post-paid communication,which, in the past, had been treated very differently. Brandimage, as a result, was being driven in two differentdimensions. "Brand AirTel is a category leader straddling
  • 17. completely different market segments such as consumer,business and corporate, as well as different voice, data andpayment platforms," says Bindal. "Express yourself enables thebrand to unify and connect across the entire base of ourexisting and prospective customers."One of the most obvious benefits of owning a property such ascandid expression (and Express yourself) is the expansivenature of the thought. "The moment you have as broad acanvas as Express yourself, it becomes easy for anyoneworking on the brand to come up with new ideas andexecutions. Thats what makes a good campaign idea,"observes Rediffs Prashant Godbole, who, along with creativepartner Zarvan Patel, conceived the campaign. This is just theproverbial tip of the iceberg, Patel adds. "We will be taking theidea forward in many different ways in the forthcoming work,"he informs. Patel also credits his creative team for "fleshing outthe idea".Awards and Recognitions2007-2008? Bharti Airtel has won the CNBC-TV18 India Business LeaderAward for the Outstanding Company of the year, 2007? Bharti draws top honours at the NDTV Profit BusinessLeadership Awards 2007? Bharti Airtel Ranked 3rd on Shareholder Returns inBusinessWeek IT 100 List? Sunil Bharti Mittal conferred Degree of Doctor of Science(Honoris Causa) by G. B. Pant University
  • 18. 2006-2007? Bharti draws top honours at the NDTV Profit BusinessLeadership Awards 2007? Bharti Airtel awarded the prestigious QCI-DL Shah Award onEconomics of Quality? Sunil B. Mittal chosen for this year’s Padma Bhushan Awards? Bharti Airtel is once again chosen for India’s most CustomerResponsive Telecom Company Award? Triple success for Akhil Gupta at CFO Awards for India? Bharti Airtel is amongst India’s Most Admired KnowledgeEnterprises in 2006? Sunil Bharti Mittal receives ‘The Honorary Fellowship’fromIETE? Bharti Airtel draws Top Honors at the MIS Asia IT ExcellenceAwards 2006? Bharti Airtel among the top 10 best performing companies inthe world according to Business Week IT 100 listSunil Bharti Mittal is CEO of the Year at the Frost & Sullivan AsiaPacific ICTAwards 2006 & Bharti Airtel bags Wireless ServiceProvider of the Year andCompetitive Service Provider of theYearOrganization StructureAs an outcome of a restructuring exercise conducted within thecompany; a new integrated organizational structure hasemerged; with realigned roles, responsibilities and reportingrelationships of Bharti’s key team players. With effect fromMarch 01, 2006, this unified management structure of One
  • 19. Airtel will enable continued improvement in the delivery of theGroup’s strategic vision.Areas of OperationsDelhiOur Delhi network covers a license area that includes the stateof Delhi and the neighbouring towns of Faridabad and Gurgaonin the state of Haryana, and Ghaziabad and Noida in the stateof Uttar Pradesh. We have a 20-year license to provide cellularservices in our Delhi circle, valid until November 2014, andwhich is extendible by additional periods of 10 years. Inaddition to being India’s political capital, Delhi has the highestper capita income, the highest installed fixed-line penetrationrate, and the highest population density among the 29 states ofIndia. Delhi has a high concentration of service andmanufacturing industries and houses the Central Government,the head offices for many major public sector enterprises,embassies and various government missions and developmentagencies. We believe that these factors create high roamingrevenue potential from cellular subscribers who roam into ournetwork from other circles. As of November 30, 2001, we had465,278 customers in Delhi, giving us a market share ofapproximately 56% in this circle.Karnataka and Andhra PradeshLocated in southern India, Karnataka is a major business centreand several information technology companies are based inand around its capital, Bangalore. Andhra Pradesh is adjacentto Karnataka and several information technology companies
  • 20. are based in and around its capital, Hyderabad. Informationtechnology companies are typically high-volume users oftelecommunications services, particularly for data transmission.We offer cellular services in these circles pursuant to 20-yearlicense, valid until 2016 for Karnataka and until 2015 for AndhraPradesh, each of which is extendible by additional periods of 10years. As of November 30, 2001, we had 177,810 and 195,054customers in Karnataka and Andhra Pradesh, respectively,giving us a market share of approximately 57% and 48%,respectively, in these circles.ChennaiWe provide cellular services in Chennai (the capital city of thesouthern state of Tamil Nadu) and in the adjoining areas ofMahabalipuram, Minjur and Maraimalai Nagar. Chennai is amajor centre for information technology companies and foreignmultinational corporations. Our network is operated pursuantto a 20-year license, valid until November 2014, and which isextendible by additional periods of 10 years. As of November30, 2001, we had 110,032 customers in Chennai, giving us amarket share of approximately 51% in this circle.Himachal PradeshLocated in northern India, Himachal Pradesh is one of India’smost mountainous states and is a popular tourist destination,particularly for residents of Delhi and other north Indian states.Our network is operated pursuant to a 20-year license, validuntil November 2015, and which is extendible by additionalperiods of 10 years. As of November 30, 2001, we had 12,462
  • 21. customers in Himachal Pradesh, giving us a market share ofapproximately 64% in this circle.KolkataKolkata is the capital city for the eastern state of West Bengal.Several domestic and multinational companies are based inKolkata and it is a major centre for trade and commerce ineastern India. Our network is operated pursuant to a 20-yearlicense, valid until November 2014, and which is extendible byadditional periods of 10 years. As of November 30, 2001, wehad 87,570 customers in Kolkata, giving us a market share ofapproximately 41% in this circle.We have grown as a result of both organic growth andacquisitions of circles completed by us. The following table setsforth the growth in the number of our cellular customers overthe last three years.In September 2001, we entered into license agreements withthe DOT to provide cellular services in the eight circles ofMumbai, Maharashtra, Gujarat, Madhya Pradesh, Haryana,Uttar Pradesh (West), Tamil Nadu and Kerala. All these licensesare for a period of 20 years, valid until August 2021, and areextendible by additional period of 10 years. In September 2001,the DoT also restored the Punjab license in our favour. ThePunjab license is for a period of 20 years, valid until 2015, and isextendible by additional periods of 10 years. We expect tocommence providing cellular services in these nine proposedcircles by the middle of this year.MumbaiMumbai is the financial and commercial capital of India and oneof the largest cities in the world in terms of population.
  • 22. Mumbai is among the highest per capita income cities in India.Several leading financial institutions, regulatory agencies,multinational corporations, service organizations and leadingconglomerates are located in Mumbai. The concentration ofcommercial activity and service industry in Mumbai has led to astrong demand for telecommunications services, both voiceand data.Maharashtra. Surrounded by Gujarat, Madhya Pradesh, AndhraPradesh and Karnataka, Maharashtra is a prominent state inWestern India.Maharashtra is one of the most industrialised states in Indiaand several industries including sugar, pharmaceuticals,petrochemicals, heavy chemicals, electronics, automobiles,engineering, food processing and plastics are located in thestate. Maharashtra has attracted high amount of investmentfrom Indian and foreign companies in the past. Among states,Maharashtra has among the higher literacy rates and is a centrefor learning and research in India.GujaratGujarat is located adjacent to Maharashtra and is also aprominent industrialised state in the country. Severalcompanies in the chemicals and petrochemicals,pharmaceuticals and textiles sectors are based in Gujarat andthe largest grass-root level petroleum refinery in India islocated in the state. Gujarat also has one of the busiest ports inIndia and handled a high proportion of India’s exports for theyear ended March 31, 2001.Haryana
  • 23. Haryana is adjacent to Delhi and is surrounded by the states ofHimachal Pradesh, Uttar Pradesh, Rajasthan and Punjab. Thecity of Chandigarh, which is a union territory, is a joint capitalcity of the states of Haryana and Punjab. Haryana is also anemerging centre in north India for IT enabled services such ascall centres, which are typically high-volume users oftelecommunications services.PunjabPunjab is among the highest per capita income states in India.Punjab has emerged as a leading producer of agriculturalproducts in India and several multinational corporations haveinvested in Punjab in agricultural-related businesses. Punjab isalso emerging as a base for the production of engineeringgoods, pharmaceuticals, leather goods, food products, textiles,electronic goods, sugar, machine tools, hand tools, agriculturalimplements, sports goods, paper and paper packagingmaterials.Uttar Pradesh (West)Uttar Pradesh (West) is a circle carved out of the north Indianstate of Uttar Pradesh by the DoT and has been classified as aCategory B cellular license area. It is a popular tourist locationin northern India with several holy shrines and pilgrimagelocations.Madhya PradeshLocated in central India, Madhya Pradesh has a total area ofapproximately 443,000 square kilometers and has substantialmineral resources, making it a centre for the aluminum,chemical and iron and steel industries. Several industries in theelectronics, telecommunications, petro-chemicals, food
  • 24. processing and automobiles sectors are also located in MadhyaPradesh.KeralaLocated in south India, Kerala is rich in minerals, marineproducts and agricultural products. A large section of theformer population of Kerala lives outside India as non-residentIndians and has contributed to a relatively high foreignexchange inflow in this state. The state has the highest densityof science and technology personnel and the highest literacyrate in India.Tamil NaduLocated in southern India, Tamil Nadu is surrounded by AndhraPradesh, Karnataka and Kerala. Tamil Nadu has severalindustrial undertakings engaged in cotton, sugar, leather,textiles, engineering and petrochemicals sector. The state has alarge number of professionals and has witnessed a rapidgrowth in the software industry in the past few years.In addition to entering into licenses with the DOT for our eightadditional circles and the restoration of our Punjab license, wehave taken the following steps towards commencingoperations in these circles and the integration of the proposedcircles with our existing circles:completed network planning activities and implementing thesame entered into rate contracts and, for some circles, placedpurchase orders with vendors, including Siemens, Motorola andEricsson, for the supply of telecommunications equipment andnetwork design commenced recruitment activities and internaltransfer of employees for new areas of operations entered into
  • 25. agreements with the Escorts group, a provider of cellularservices in the Haryana, Kerala, Uttar Pradesh (West), HimachalPradesh and Punjab circles, to share cellular infrastructure inorder to reduce costs and speed the launch date for ourservices identified, and in some cases acquired, locations forthe main switching centres and cell sites. selected a commonbilling system, customer relationship and enterprise resourceplanning packages and other office systems and controls for ourexisting and proposed cellular networks.Airtel has also reorganized the management structure of itscellular business on a regional basis in an effort to bettercapture revenue and cost synergies.PRODUCT LINE-UPBharti Airtel offers GSM mobile services in all the 23-telecomcircles of India and is the largest mobile service provider in thecountry, based on the number of customers.The group focuses on delivering telecommunications servicesas an integrated offering including mobile, broadband &telephone, national and international long distance and dataconnectivity services to corporate, small and medium scaleenterprises.The group offers high speed broadband internet with a best inclass network. With Landline services in 94 cities we help youstay in touch with your friends & family and the world.
  • 26. The Company compliments its mobile and broadband &telephone services with national and international longdistance services. It has over 35,016 route kilometers of opticfibre on its national long distance network. For internationalconnectivity to east, it has a submarine cable landing station at.For international connectivity to the west, the Company is amember of the South East Asia-Middle East-Western Europe –4 (SEA-ME-WE-4) consortium.ServicesBroadband and internet servicesAirtel brings you a host of exciting features ranging fromfacilities like Online tests, In touch and Video SurveillanceSolutions to trouble shooting devices like, Net Expert and WebJockey.Control your business, 24x7. Observe your office, warehouse,shop and staff from your PC, from anywhere and all the timeCreate and share your precious moments with your loved oneswith In Touch. It’s a great way to reach out to your loved oneswho are far away.Introducing NetXpert, India’s first ever automated Broadbandcare technology which provides immediate solutions forInternet connectivity related problems.Airtel Broadband Services and TCY Online offer you onlinecompetitive tests for GRE, GMAT, SAT and MBA, from thecomfort of your home.
  • 27. Wifi is a wireless technology brand by the Wifi Alliance thatgives you a host of fantastic advantages ranging from reliabilityto security.Calling cardsOur calling card services connect you to your friends andfriends in India a cost effective and reliable manner. Choosefrom the options below and stay connected.Calling Cards includeGreat savings on calling anywhere in India or across the world.Even if your phone is not STD/ISD enabled, go ahead and talk toyour loved ones.Now call back India from USA at lowest cost of just 6c / min .Traveling abroad? Save precious foreign exchange and up to94% over international roaming charges.Home PhonesHome Phones includeAirtel welcomes you to its world of telephony services, whichoffers you world class services with its cutting edge technology.Avail of the convenience of a mobile phone on a fixed line,without any cables disturbing the ambience of your livingroom!Mobile Footprint
  • 28. The map below depicts the location of, and provides certaininformation for, Bharti Tele-Ventures existing mobile circles inIndia:PROMOTIONAL STRATEGYAfter the liberalization of the Indian Telecom Sector in 1994,the Indian cellular market witnessed a surge in cellular services.By 2005, there were a total of 12 players in the market with thefive major players being Bharti Tele-Ventures Limited (Bharti),Bharat Sanchar Nigam Limited (BSNL), Hutchinson-Essar limited(Hutch), Idea Cellular limited (Idea) and Reliance India Mobile(RIM).All the players except RIM offered services based on the GlobalSystem for Mobile (GSM) technology. RIM provided servicesbased on Code Division Multiple Access (CDMA) technology aswell as GSM.As competition in the telecom arena intensified, serviceproviders took new initiatives to woo customers. Prominentamong these were - celebrity endorsements, loyalty rewards,discount coupons, business solutions and talk time schemes.The most important consumer segments in the cellular industrywere the youth segment and the business class segment. Theyouth segment was the largest and fastest growing segmentand was therefore targeted most heavily by cellular serviceproviders.
  • 29. Bharti Tele-Ventures adopted celebrity endorsement as its chiefpromotional strategy. By 2004 it emerged the unprecedentedleader commanding the largest market share in the cellularservice market. (Refer Exhibit II). Hutch implemented thecelebrity endorsement strategy partially, relying primarily on itscreative advertising for the promotion of its brand. BSNL, onthe other hand, attracted the consumer through its low costschemes. Being a state owned player, BSNL could cover ruralareas, and this helped it increase its subscriber base. Reliancewas another player that cashed on its innovative promotionalstrategies, which included celebrity endorsements andattractive talk time schemes. Idea, relied heavily on its creativemedia advertising sans celebrities.SWOT ANALYSISSTRENGHTS1. India has technically educated, motivated and intelligentworkforce, who if given proper incentives like quality living andbenefits, can be retained in India .2. India possesses cheap labours to attract foreign investments.3. Telecom software, telecom professionals, telecominfrastructure and telecom services are the key players inshaping today’s economy.4. Revenue sharing strategies are leading to mergers andactuations, helping companies to enter new business
  • 30. opportunities, and generate employments, boosting thecountry’s economy.5. Privatization of VSNL, along with its partnership with Tata hasbenefited not only the two companies but also the county atlarge.6. Information technology growth can propel India into ITsuperpower.7. Quality of life definitely improves when the infrastructureand economy improves.8. India has huge project plans with foreign countries which canattract further mergers , investments etc.9. Foreign companies that are facing problem in home markethave already identified India as a potential markets for businessand therefore they are heavily investing in India.10. Government has already started relaxing rules for foreignparticipants.11. Software exports from software technology parks are ahuge potential business.12. Though global telecom picture looks gloomy but Indiapossesses the competitive advantage in terms of its hugemarket size and many undeveloped areas.WEAKNESSES1. Bureaucracy and politics tremendously affects the businesspolicies.2. Slow reform process and slow liberalization affect thechanges and makes the progress slow.
  • 31. 3. Foreign companies wanting to invest in India are put off dueto continuously changing rules and lax policies.4. Telco’s though united, provide some services that bring themin close competition and therefore lose not only profits but alsoconsumer confidence.5. Compared to the global structure, India is still concentratingon universal service in some parts of the country.6. Since 1994 reform process, telecom density has only gone upto 3 as compared to the global average of 14.7. Though cellular is the most attractive business today, but stillthe overall number of cellular subscribers is very low and thismarket really needs to be tapped.8. Embracing change and understanding the technology takes alot of time making the changes very slowly.OPPORTUNITIES1. Lot of new entrants in telecom is bringing investmentopportunities.2. Economic liberalization is bringing a significant amount ofprogress.3. Telecom educational institutes are coming up to keep theprofessionals at par with the changing technology.4. New opportunities are generating more employment andcreating a knowledge based economy5. Privatization of services in telecom sector has led to keencompetition, as a result of which prices are reduced and morebusiness opportunities are created.
  • 32. 6. Increased availability of bandwidth has opened doors to newschemes making efficient usage /providing value added servicesand generating profits.7. For cellular operators providing long distance is a lucrativebusiness opportunity and they can also concentrate onproviding many value added services.8. Provision of not only basic services /but also, internet,cellular, medical transcription, call center.THREATS1. Regulatory and tariff changes especially in the cellularoperations are constant threats.2. China’s early liberalization and the fast growing economymay prove to be a hindrance for India.3. Economic protectionism and continuous political changesplays against plays against everybody’s favors and affects thegood intentions of players even like reliance / Tatas etc.4. Price regulations based on pre set rate of return hinder thegrowth.5. Young hard working and intelligent work force want to leavethe country due to poor economic conditions and exploitation.6. Indian businesses take time or can’t survive due to theconstantly changing technology and fast-paced nature oftelecom business.CHAPTER-IIIIRESEARCH OBJECTIVE
  • 33. RESEARCH OBJECTIVEThe objective of my project report is to study the advertisingstrategy of AIRTEL Cellular service and its effect on mobile usersexisting and who are going to use mobile service in future. Inother words, my aim is to study theAdvertising Effectiveness of AIRTEL Cellular service.? To learn the practical knowledge and how academicknowledge convertible in practical way.? To find out the success rate of the airtel cellular.? To find out how much organization is involved in the mind ofconsumer.? To measure the customer’s satisfaction of airtel who are usingairtel services and products.? To develop a new strategy for the improvement of existingAirtel services and to find new ways of increasing Market share.CHAPTER-VRESEARCH METHODOLOGYRESEARCH METHODOLOGY
  • 34. Achieving accuracy in any research requires in depth studyregarding the subject. As the prime objective of the project is tostudy advertising strategy of Airtel .The research methodologyadopted is basically based on primary data via which the mostrecent and accurate piece of first hand information could becollected. Secondary data has been used to support primarydata wherever needed.Primary data was collected using the following techniquesQuestionnaire MethodDirect Interview Method andObservation MethodThe main tool used was, the questionnaire method. Furtherdirect interview method, where a face to face formal interviewwas taken. Lastly observation method has been continuouswith the questionnaire method, as one continuously observesthe surrounding environment he works in.Procedure of research methodology# Target geographic area was East Delhi.# To these geographical area questionnaire was given, thequestionnaire was a combination of both open ended andclosed ended questions.# The date during which questionnaires were filled wasbetween six week.# Some dealers were also interviewed to know theirprospective. Interviews with the honour of retailer of Airtelwere also conducted.
  • 35. # Finally the collected data and information was analyzed andcompiled to arrive at the conclusion and recommendationsgiven.Sources of secondary dataUsed to obtain information on, Airtel and its competitorhistory, current issues, policies, procedures etc, whereverrequired.# Internet# Magazines# NewspapersCHAPTER-VILIMITATIONS OF STUDYLIMITATIONS OF STUDYThe researcher has to face certain difficulties while he carriesout the research work. He knows the limitations before hand.Some of them are uncontrollable and some others arecontrollable. Some important limitations, which were faced, areas follows:1. Limitation of Time: I have completed the research in limitedtime. In spite of all the difficulties if the time is short it is quitepossible that one cannot collect the sufficient data and have todepend upon other source of data.
  • 36. 2. Limitation of funds: Availability of funds was anotherlimitation owning to shortage of money.3. Limitation of skills: the research needs a lot of statistical workinvolving collection and tabulation of data, interpretation ofdata and drawing out the necessary results. It requires an able,efficient and experienced research works.4. Limitation of human behaviors:(a) Some of the respondent was not honest and genuine intheir approach.(b) Some of the respondents could not understand certainqueries.CHAPTER-VIICONCLUSIONCONCLUSIONThe conclusion of my study is that AIRTEL’s Advertising has amajor impact on its users. People like its schemes very much.AIRTEL had created a very good image on the mind of the newusers of cellular service.AIRTEL has adopted a very good strategy by providing a newconnection with NOKIA who is market leader in mobile sets,many new users buy Nokia sets and they get a free connectionof AIRTEL.
  • 37. AIRTEL is successful in capturing the highest market share byadopting Celebrity Endorsement Strategy. A.R. Rehmaan’s tunefor AIRTEL worked as free advertising for AIRTEL as anotherservice user uses it too. Other celebrities like Shahrukh Khan(Bollywood) and Sachin Tendulkar (Cricket) has also contributedvery much in AIRTEL.AIRTEL has influenced mass customer by its wide network basein India and is popular among business man and professionalsbut in students it isn’t a popular one because there isn’t muchattracting schemes and offers for the youth.CHAPTER-VIIIRECOMMENDATIONSTags MarketingRelated Essays MarketingInteractive Marketing Trends - Internet Marketing ResearchPaper (300 Level Course)Internet Retailer Price Points - Internet Marketing ResearchPaper (300 Level Course)New Belgium Brewing Company - Marketing Strategy ResesarchOutline (300 Level Course)Search Engines Still Fail to Disclose Ads - Internet MarketingResearch Article (300 Level Course)Leo Burnett - Advertising Pioneer. Marketing StrategiesResearch Paper (300 Level Course)Search Research Papers
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