Bharati airtel final project 1

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Bharati airtel final project 1

  1. 1. 1 BHARATI AIRTEL Industrial Exposure Project Submitted in partial fulfillment of the requirements for the Award of Degree / Diploma of BBA 2011 – 2014 Submitted by: Guided by Karan Deep Singh kriti Jain BHARATI VIDYAPEETH DEEMED UNIVERSITY SCHOOL OF DISTANCE EDUCATION Academic Study Center - BVIMR, New Delhi An ISO 9001:2008 Certified Institute NAAC Accredited Grade “A” University
  2. 2. 2 Student Undertaking This is to certify that I Karan Deep Singh had completed the Project titled ―industrial exposure in (Bharti Airtel) under the guidance of Ms. (kriti jain) in the partial fulfillment of the requirement for the award of degree of BBA of BVDU, SDE, Academic Study Center BVIMR, New Delhi. This is an original piece of work & I had neither copied nor submitted it earlier elsewhere. KARAN DEEP SINGH Student Name and Signature Course BBA Dated – 5/5/2013
  3. 3. 3 Certificate (On Academic Center Letter head) This is to certify that the project titled “BHARATI AIRTEL‖ is an academic work done by ―KARAN DEEP SINGH‖ submitted in the partial fulfillment of the requirement for the award of the Degree of BBA from BVU SDE, Academic Study Center BVIMR, and New Delhi under my guidance and direction. To the best of my knowledge and belief the data and information presented by him/her in the project has not been submitted earlier Name and signature of Faculty Guide Designation
  4. 4. 4 Certificate (On Academic Center Letter head) This is to certify that the Project titled ―BHARATI AIRTEL is an academic work done by ―KARAN DEEP SINGH‖ submitted in the partial fulfillment of the requirement for the award of the Degree of BBA from ―BVDU, SDE, Academic Study Center BVIMR, and New Delhi‖. It has been completed under the guidance of Ms.KRITI JAIN (Internal Guide). We wish him/her all the best for his/her future endeavors. Dr. Nitin Nayak (Director)
  5. 5. 5 Acknowledgement If words are considered to be sign of gratitude then let these words convey the very sense, my sincere gratitude to Bharti Airtel for providing me an opportunity to work with Bharti Airtel and giving necessary directions on doing this project on the best of my abilities. Its great experience to work with such an organization where I have learnt a lot and get a chance to enhance my knowledge and polish my skills. I have learnt the importance getting one‘s life insured through different policies provided by government. The successful completion of the project would have been far from reality without mentioning the people who made an indelible impression while making the project. I would also like to express my gratitude to DR. Nitin Nayak (director), BVIMR NEW DELHI, for providing all needful facilities in the campus and the best faculty for the students. All the very outset thanks to MS. Kriti Jain for instructing me and providing me the opportunity to participate in the project and sharing her invaluable knowledge and experience with me .Her innovative ideas provided me clarity of thoughts which helped me to think on the right way. Despite their busy schedule they spared valuable moments for reviewing and rectifying this project work. Due to the proper guidance the making of the project report become an enjoyable experience and easy to workout KARAN DEEP SINGH
  6. 6. 6 Preface It‘s a thing of massive gratification for me to present this project in an unrivaled organization AIRTEL. Mobile telephony adoption is on the rise and recent technological innovations have dramatically enhanced the capabilities of the wireless telephone. Leveraging the power of these new capabilities, various sectors are working together to offer a wide array of service. Each sector is looking for the next ―killer application‖ yet we are still learning about people‘s information and communication needs while ―on the go‘‘. This project attempts to identify and define areas related to consumer behavior regarding new connection services. It also attempts to develop at least first approach to these areas , to think through policies, principles and practices to accomplish the new task and satisfy the customer needs. Now the mobile communications are the fastest growing industry. We can reach to anyone, anywhere across world through mobile connectivity. The project report has been painstakingly and thoroughly prepared to cover, extensively various facets- both micro as well as macro- of the field of telecommunication marketing. Its coverage is broad and up to date and it is balanced in terms of concept and application. This project is intended for a wide audience. It will be useful to not only the students of management, marketing management and consumer behavior but also to the other people in the field of management practioners who want to understand and enrich their understanding of consumer & trends and effectively manage their sales KARAN DEEP SINGH (Sign of the student)
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  9. 9. 9 Industry Telecommunications Founded 7 July 1995 Founder(s) Sunil Bharti Mittal Headquarters New Delhi, India Area served South Asia, Africa and the Channel Islands Key people Sunil Bharti Mittal (Chairman and MD) Products Fixed line and mobile telephone broadband and fixed-line internet services, digital television and iptv.
  10. 10. 10 Chapter 1 Introduction to company
  11. 11. 11 Introduction to Airtel Sunil Mittal founded the Bharti Group. In 1983, Mittal was in an agreement with Germany's Siemens to manufacture push-button telephone models for the Indian market. In 1986, Mittal incorporated Bharti Telecom Limited (BTL), and his company became the first in India to offer push-button telephones, establishing the basis of Bharti Enterprises. By the early 1990s, Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. In 1992, Mittal won a bid to build a cellular phone network in Delhi. In 1995, Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Sky cell Communications, in Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public in 2002 and the company was listed on Bombay Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone operations were rebranded under the single Airtel brand. In 2004, Bharti acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar. This expansion allowed it to offer voice services all across India. In 2009, Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel acquired the African operations of the Kuwait based ZainTelecom.In March 2012; Airtel launched a mobile operation in Rwanda. Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services. It offers its telecom services under the Airtel brand and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieve this Cisco Gold Certification. To earn Gold Certification, Bharti Airtel had to meet rigorous standards for networking competency, service, support and customer satisfaction set forth by Cisco. The company also provides land-line telephone services and broadband Internet access (DSL) in over 96 cities in India. It also acts as a carrier for national and international long distance communication services.Thecompany has a submarine cable landing station at Chennai, which connects the submarine, cable connecting Chennai and Singapore. The businesses at Bharti Airtel have always been structured into three individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service, Airtel Digital TV. Shahrukh Khan is the brand ambassador of the mobile company and Kareena Kapoor and Saif Ali Khan are the brand ambassadors of the DTH Company. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station.
  12. 12. 12 Nature of business Bharti Airtel Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Airtel is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 50 million total customers, which constitute, 45.8 million mobile and 15.4 million fixed line customers, as of March 31, 2012 Airtel comes to us from Bharti Airtel Limited - a part of the biggest private Airtel is the world's third largest mobile telecommunications company with over 261 million subscribers across 20 countries as of August 2012. It is the largest cellular service provider in India, with 183.61 million subscribers as of November 2012.Airtel is the third largest in- country mobile operator by subscriber base, behind China Mobile and China Unicom. Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services. It offers its telecom services under the Airtel brand, and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieve Cisco Gold Certification.[ It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. Airtel is credited with pioneering the business strategy of outsourcing all of its business operations except marketing, sales and finance and building the 'minutes factory' model of low cost and high volumes. The strategy has since been copied by several operators.Its networks—base stations, microwave links, etc.—is maintained by Ericsson and Nokia Siemens Network whereas business support is provided by IBM, and transmission towers are maintained by another company (Bharti Infratel Ltd. in India). Airtel comes to you from Bharti Airtel Limited, India‘s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU‘s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand. Business Divisions. Mobile: Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. Internet: The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world.
  13. 13. 13 Data connectivity: The group focuses on delivering telecommunications services as an integrated offering including mobile, broadband & telephone, national and international long distance and data connectivity services to corporate, small and medium scale enterprises. Fiber cables: The Company compliments its mobile and broadband & telephone services with national and international long distance services. It has over 35,016 route kilometers of optic fiber on its national long distance network. For international connectivity to east, it has a submarine cable landing station at. For international connectivity to the west, the Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-ME-WE-4) consortiums along with 15 other global telecom operators. Mobile Prepaid: Enter the world of limitless possibilities with Airtel Prepaid. The service that helps you gives 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 in your special way. Value for our customers, employees, investors, partners, vendors and the society at large lies at the root of our fundamental business strategy. Our core principles of trust and transparency have come a long way in helping us develop and nurture long-term relationships with our key stakeholders. Our performance exudes from our belief in and commitment to the telecom sector; and translates into creating innovative exciting opportunities for one and all. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU‘s) - mobile services, telemedia services (ATS) & enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the ATS business group provides broadband & telephone services in 94 cities. The enterprise services group has two sub-units - carriers (long distance services) and services to corporate. All these services are provided under the Airtel brand.
  14. 14. 14 Ownership pattern of Bharti Airtel Sunil Mittal founded the Bharti Group. In 1983, Mittal was in an agreement with Germany's Siemens to manufacture push-button telephone models for the Indian market. In 1986, Mittal incorporated Bharti Telecom Limited (BTL), and his company became the first in India to offer push-button telephones, establishing the basis of Bharti Enterprises. By the early 1990s, Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. In 1992, Mittal won a bid to build a cellular phone network in Delhi. In 1995, Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Sky cell Communications, in Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was listed on Bombay Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone operations were rebranded under the single Airtel brand. In 2004, Bharti acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar. This expansion allowed it to offer voice services all across India. In 2009, Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel acquired the African operations of the Kuwait based Zain Telecom. In March 2012, Airtel launched a mobile operation in Rwanda. Today, Airtel is the largest cellular service provider in India and the third largest in the world.
  15. 15. 15 Bharti Airtel Limited, common known as Airtel, is Indian multinational telecommunications Services Company headquartered at New Delhi, India. It operates in 20 countries across South Asia, Africa and the Channel Islands. Airtel has GSM network in all countries in which it operates, providing 2G, 3G and 4G services depending upon the country of operation. Airtel is the world's third largest mobile telecommunications company with over 261 million subscribers across 20 countries as of August 2012. It is the largest cellular service provider in India, with 183.61 million subscribers as of November 2012. Airtel is the third largest in- country mobile operator by subscriber base, behind China and China Unicorn. The board of directors of the company has an optimum mix of executive and nonexecutive Directors, which consists of two executive and fourteen non-executive directors. The chairman and managing director, Mr. Sunil Bharti Mittal, is an executive director and the number of independent directors on the board is 50% of the total board strength. The independence of a director is determined on the basis That such director does not have any material pecuniary relationship with the company, its promoters or its management, which may affect the independence of the judgment of a director. The board members possess requisite skills, experience and expertise required to take decisions, which are in the best interest of the company.
  16. 16. 16 Organizational structure of Airtel
  17. 17. 17 Production Layout There are three major services provided by Bharti Airtel to its customers. Mobile communication: Bharti Airtel offers Gsm mobile services in all the 22-telecom circles of India and is the largest mobile service provider in the country, based on number of customers. Airtel brings to you a world class 3G network capable of delivering amazing access speeds to keep you ahead, increasing bandwidth on your mobile to broadband speeds. 3G not only promises faster web browsing and file downloads but also empowers demanding multimedia applications such as video conferencing, Voice-over-IP (VoIP), full motion video and streaming music. Experience a whole new world of applications with amazing speed on Airtel 3G. Airtel Digital TV : Airtel discover the magical experience of digital entertainment from DVD quality pictures and sound , the best and widest variety of channels and programmes to the to the best on- demand content on Airtel Live , TV viewing experience change forever with the digital from Airtel. Airtel digital TV is an Indian direct broadcast satellite service provider owned and operated by Bharti Airtel. Its satellite service, launched on 2008, transmits digital satellite television and audio to households in India. It uses MPEG-4 digital compression withDVB-S2 technology, transmitting using the satellite SES-7 108.2°E. Airtel Digital TV service was launched on 8 October 2008.
  18. 18. 18 Airtel broadband: The Bharti Airtel group offers high-speed broadband with the best in class network. With fixed line services in 88 cities, Airtel help us stay in touch with our friends and family and keep us updated round the clock. Both unlimited plans (128k and 256k) are not dedicated users report an average of 30kBps on 256k and 15 kBps on 128k. Most of the users are upgraded to double speeds (128k to 256k and 256k to 512k) after 11pm till 7am. Note that this only applies to certain areas and so far seems to affect customers at random. Some may or may not get this feature, and is not guaranteed to take place every day. Airtel is known for their excellent Customer Care and Billing, although there have been customers who would say otherwise, but for now they exist in minority. The customers have reported next to none downtimes and excellent performance with P2P program .Airtel was one of the first ISP's to introduce 256kbps Unlimited package in India after which it gained a lot commercial success, and for quite a while was called the 'Best ISP in India'. However, after January 2007, after almost two years with the same speed packages,. Organizational policies of Airtel Bharti Enterprises Limited (including its group and Joint Venture companies) firmly believes in the principles of Corporate Governance and is committed to ensure sustainable, capital-efficient and long-term growth thereby maximizing shareholder value. The company‘s commitment towards compliance to the highest governance standard is backed by an independent and fully informed board, comprehensive processes, policies and communication. The Company ensures that various disclosure requirements are complied in ‗letter and spirit‘ for effective Corporate Governance. We adhere to the highest levels of ethical business practices as articulated by our Code of Conduct so as to achieve our performance with integrity. GSM operators initially get 4.4 MHz and get 10 MHz when they have 10 lakh subscribers. In 2002, the cost of 4.4 MHz of spectrum was Rs.1650 crores and in 2007 the cost remains same. The rule mandate that no company should have more than 6.2 MHz, but Bharti, Vodafone and BSNL have 10Mhz spectrum which will cost the nation Rs.7216 crore annually.FDI is allowed 49%, but allowed up to consolidated amount of 74% with others such as NRI‘s, Financial Institutions. Airtel follows ―Match-box strategy‖ The firm expands regularly in Bihar, piggybacking on 300 distributors and more than 50,000 retail outlets selling Airtel prepaid cards Covers over 4,00,000 villages and hopes to expand to other 1,00,000 by 2009 The Company is committed to maintaining the highest standard of conduct and professionalism and towards this end has formulated a policy that will provide clarity about the method and process for stakeholders to voice genuine concerns about unprofessional conduct in breach of this Code. This policy should be read in conjunction with bharti's code of conduct. Provide an independent forum by means of the Office of the Ombudsperson, for employees and external stakeholders of the company to raise concerns and complaints about improper practices which are in breach of the Bharti Code of Conduct. Put in place a fair and equitable inquiry process and redressal mechanism. Reassure employees and other stakeholders raising the concerns, that each one will be fully protected against possible.
  19. 19. 19 Reprisals, intimidation, coercive action, dismissal, demotion or victimization when a serious and genuine concern of apparent unprofessional conduct has been made in good faith. This policy is applicable to all employees of the Bharti Group, and to all other stakeholders interacting with the Bharti Group. It allows those individual employees and other stakeholders To raise concerns, issues or information of acts or conduct that are in breach of the company's Code of Conduct. Bharti Tele-Ventures Limited firmly believes in the principles of Corporate Governance and is committed to conduct its business in a manner, which will ensure sustainable, capital-efficient and long-term growth thereby maximizing value for its shareholders, customers, employees and society at large. Company's policies are in line with Corporate Governance guidelines prescribed under Listing Agreement/s with Stock Exchanges and the Company ensures that various disclosures requirements are complied in 'letter and spirit' for effective Corporate Governance. During the financial year 2003-04, your Company has been assigned highest Governance and Value Creation (GVC) rating viz. 'Level 1' rating by CRISIL, which indicates that the company's capability with respect to creating wealth for all its stakeholders is the highest, while adopting sound Corporate Governance practices The Office of the Ombudsperson is an independent forum for employees and external stakeholders of the company to raise concerns and complaints about improper practices which are in breach of the Bharti Code of Conduct. Any stakeholder (employee, associate, strategic partner, vendor) who observes unprofessional behavior can approach the Ombudsperson to voice his or her concerns. The complainant may be either an observer who is not directly impacted, or a victim who is directly or indirectly affected by such practices The Office aims to provide a fair and equitable redressal mechanism. The process is designed to offer protection to the complainant provided the disclosure is made in good faith and the alleged action constitutes a genuine and serious breach of Bharti Code of Conduct. The Ombudsperson will treat all disclosures in a confidential and sensitive manner. A person can raise a concern, either verbally or in writing by giving background of the unprofessional conduct, reasons for raising the concern, the identity of the individuals who may be involved and documentary evidence, wherever available.
  20. 20. 20 Chapter 2: Industry Analysis
  21. 21. 21 Industry overview (growth rate, contribution to GDP) In the 2000s, telecommunications (telecom) company Bharti Airtel Limited (BAL) was the market leader in the Indian telecom market. It had established itself as the leader in the market by differentiating itself with its focus on building a strong brand through innovation in sales, marketing, and customer service, and an innovative cost effective business model. Analysts also credited BAL with negotiating the regulatory hurdles in this emerging market and competition very effectively. This enabled it to become profitable despite the Indian telecom market having the lowest tariffs in the world. Some analysts opined that BAL's unique business model had become the benchmark for emerging markets. Mobile telephony in India was experiencing the fastest growth in the world and India was already one of the leading markets in terms of mobile subscriber base. Despite Average Revenue per User (ARPU) figures in the country being quite low compared to many other markets, it was viewed as an attractive market as mobile penetration of the market, particularly in the huge rural areas in India, was still low. With the developing market in the West reaching high levels of saturation (70% in US and 100% in some European markets), many global telecom operators were looking at emerging markets for their growth and this made India a prime target market for these firms.Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. In India Airtel is No 1 by subscriber base and revenue. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service, Airtel Digital TV Bharti Airtel had to meet rigorous standards for networking competency, service, support and customer satisfaction set forth by Cisco. The company also provides land-line telephone services and broadband Internet access (DSL) in over 96 cities in India
  22. 22. 22 Growth rate of Bharti Airtel Growth For the current year 100 % increase in profit 86% customer growth rate 58% increase in revenue 79% increase in EBITDA Year Overall Subscriber Base Airtel Subscriber Base Market Share Mar-08 2,61,54,405 42,16,317 16.12087 Mar-09 4,10,25,940 1,04,78,585 25.54136 Mar-10 6,91,93,321 1,95,79,208 28.29638 Mar-11 12,14,31,166 3,71,41,210 30.58623 Mar-12 18,44,13,702 6,19,84,721 33.61178
  23. 23. 23 Current issues Major telecom firms Airtel, Vodafone and Idea have threatened to exit 3G services if the Government does not approve their pact to provide intra-circle roaming. Bharti Airtel Chairman Sunil Mittal, Idea Cellular Chairman Kumar Birla and Vodafone CEO Vittorio Colao have written a joint letter to the Prime Minister. In the letter, they said, "...in the event that 3G Intra-Circle Roaming (ICR) is now deemed impermissible; then, it would be a clear breach of our contract and the pre-auction confirmation given by the Government." They want a refund of the 3G spectrum payments if intra-circle roaming is not allowed. The letter also asked for a refund of the auction payment with interest as well as compensation for all capital investments made in 3G."In that eventuality, we request that our spectrum auction payments be refunded to us with interest (as) compensation for all the capital investment made by us," said the letter. The roaming pact between the three companies allowed them to provide 3G services in circles where they do not hold a license. Telecom watchdog TRAI said this is a violation of the terms of the license with serious financial implications for the Government. In the auction for 3G spectrum, held last year which had fetched over Rs 68,000 crore for the government, the operators had won certain circles. Later, they entered into roaming pacts with each other for circles in which they could not win the bid. Bharti Airtel, India's largest mobile operator, said it had deployed a technology platform from Ericsson that will enable it to offer flexible data plans to prepaid subscribers across multiple domains – 2g 3G, 4G/LTE and Wi-Fi. he solution has been deployed in all 23 regions in India. Over 95 per cent of the 900 million mobile connections in India are the pre-paid platform. "Ericsson and Bharti Airtel planned and executed the systems integration of the solution that will allow Bharti Airtel to enhance the prepaid customer experience by offering a wider and more attractive range of prepaid services, flexible bundling and real-time control of chargeable services," the companies said in a statement. Both companies did not reveal the deal size. Ericsson manages and maintains the networks of Bharti Airtel in about half the country. The Swedish vendor has been focusing on seeing the telecom sector. Bharti Airtel, the country's top mobile phone company, has lost three top executives ahead of the key restructuring that is slated to happen soon, where the company may combine its India and Africa operations under a single entity. The latest to depart is the head of network operations for India and South Asia, Shankar Halder, who is leaving to start his own technology consulting firm, a company executive aware of the development said.
  24. 24. 24 Bharti Airtel, the country's top mobile phone company, has lost three top executives ahead of the key restructuring that is slated to happen soon, where the company may combine its India and Africa operations under a single entity. The latest to depart is the head of network operations for India and South Asia, Shankar Halder, who is leaving to start his own technology consulting firm, a company executive aware of the development said. In late December, the company's supply chain head S Asoka, who was a member of the Airtel management board and had been with the Telco for about seven years, put in his papers, two other company executives who declined to be named confirmed. These executives also said that Bharti had roped in Mote Gyamlani, GE Energy's vice-president for its global supply chain function for a similar role here and to oversee the logistics involved in running the company's Indian and African operations. Bharti Airtel, in an internal mail to top executives, said that it was consolidating the supply chain management across both continents under Gyamlani as part of its 'One-Airtel' strategy to create global synergies. Last month, Bharti Airtel's director for IT (India and South Asia), Amrita Gangotra, had quit to join Vodafone's global team in London. Gangotra had been responsible for planning, implementation and strategy for all its IT initiatives across mobiles, fixed lines, broadband and DTH. NEW DELHI: Chiefs of telecom giants Bharti Airtel, Vodafone and Idea Cellular have sought Finance Minister Pranab Mukherjee's intervention to ensure that they are not asked to migrate to 1800 MHz of spectrum. In a letter to the Finance Minster, they also said if the Trai proposal of spectrum reframing is implemented it may result in call rates going up by as much as 64 paisa a minute. Sect oral regulator Trai has proposed that existing operators migrate from current 800 MHz and 900 MHz spectrum to 1,800 MHz when their permits come up for renewal, at a fee discovered through auction."We request your most urgent, personal intervention to ensure that no further decision on re-farming 900 MHz is taken, at the very least until, a thorough consultation is carried out," the Telco‘s. The letter was jointly written by Bharti Airtel CEO (India and South Asia) Sanjay Kapoor, Vodafone India MD and CEO Marten Pieter‘s and Idea Cellular Managing Director Himanshu Campania.CDMA operators' body AUSPI, however, is in favor of spectrum reframing. Once accepted, CDMA players will have to use 1900 MHz band instead of the present 800 MHz band for transmitting signals for mobile services. The Telco‘s have commissioned a study through Analysis Mason to analyze the impact of spectrum reframing on the industry. Citing findings from the report, the operators said if the incremental investment in reframing and spectrum costs is passed on to the consumer.
  25. 25. 25 Key competitors of Bharti Airtel Vodafone Essar Idea Cellular Reliance Communications Tata Teleservices Limited Aircel Vodafone Essar Vodafone Group Plc is a British multinational telecommunications company headquartered in London and with its registered office in Newbury, Berkshire It is the world's second- largest mobile telecommunications company measured by both subscribers and 2011 revenues (in each case behind China Mobile), and had 439 million subscribers as of December 2011Vodafone owns and operates networks in over 30 countries and has partner networks in over 40 additional countries. Its Enterprise division provides telecommunications and IT services to corporate clients in over 65 countries. Vodafone also owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscribers. Vodafone has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalization of approximately £89.1 billion as of 6 July 2012, the third-largest of any company listed on the London Stock Exchange. It has a secondary listing on NASDAQ
  26. 26. 26 Idea cellular In 2000, Tata Cellular was a company providing mobile services in Andhra Pradesh. When Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these two entities was a reality. Thus Birla-Tata-AT&T, popularly known as Balata, was born and was later rebranded as IDEA Then Idea set sights on RPG‘s operations in Madhya Pradesh which was successfully acquired, helping Balata have a million subscribers, and the license to be the fourth operator in Delhi was clinched. In 2004, Idea (the company had by then been rechristened) bought over the Escorts group‘s Escorted gaining Haryana, Uttar Pradesh (West) and Kerala — and licenses for three more — UP (East), Rajasthan and Himachal Pradesh. By the end of that year, four million Indians were on the company‘s network. In 2005, AT&T sold its investment in Idea, and the year after Tata‘s also bid good bye to pursue an independent telecom business. And Idea was left only with one promoter, the AV Birla group. Rs 2,700 crore adding Punjab and Karnataka circles. Modi‘s joint venture
  27. 27. 27 Reliance communications Reliance Industries Limited (RIL) is an Indian conglomerate company headquartered in Mumbai, Maharashtra, India. It is an Indian broadband and Telecommunications Company headquartered in Navi Mumbai, India. RCOM is the world's 15th largest mobile phone operator with over 150 million subscribers and India's 2nd largest telecom operator in India, only after Bharti Airtel. Established on 2004, a subsidiary of the Reliance Group. The company has five segments: Wireless segment includes wireless operations of the company; broadband segment includes broadband operations of the company; Global segment include national long distance and international long distance operations of the company and the wholesale operations of its subsidiaries; Investment segment includes investment activities of the Group companies, and Other segment consists of the customer care activities and direct-to-home (DTH) activities. RIL is one of the largest publicly traded companies in India by market capitalization and is the second largest company in India by revenue after Indian Oil Corporation. It is also India's second largest private sector company by revenue and profit.
  28. 28. 28 Tata Indicom Tata Teleservices Limited (TTSL) is an Indian broadband and telecommunications service provider based in Mumbai, Maharashtra, India. It is a subsidiary of the Tata Group, an Indian conglomerate. It operates under the brand name Tata Do Como in various telecom circles of India. In November 2008, Japanese telecom giant NTT Docomo picked up a 26 per cent equity stake in Tata Teleservices for about 130.7 billion (US$2.38 billion) or an enterprise value of 502.69 billion (US$9.15 billion). In February 2008, TTSL announced that it would provide CDMA mobile services targeted towards the youth, in association with the Virgin Group on a franchisee model basis. Tata Indicom in April 2009 crossed the 35 million subscribers mark in the wireless category with an overall subscriber base of over 36 million. Tata Teleservices is #2 in terms of market share in Delhi NCR region with a subscriber base of 5 million.TataTeleservices Limited (TTSL) (BSE: 532371) is Indian broadband and telecommunications service provider based in Mumbai, Maharashtra, India. It is a subsidiary of the Tata Group, an Indian conglomerate. It operates under the brand name Tata Docomo in various telecom circles of India. In November 2008, Japanese telecom giant NTT Docomo picked up a 26 per cent equity stake in Tata Teleservices for about 130.7 billion(US$2.4 billion)or an enterprise value of 502.69 billion (US$9.2 billion
  29. 29. 29 Aircel Aircel group is an Indian mobile network operator headquartered in Chennai, that provides wireless voice, messaging and data services in India. It is a joint venture between Maxis Communications Berhad of Malaysia and Sindya Securities & Investments Private Limited, whose current shareholders are the Reddy family of Apollo Hospitals Group of India, with Maxis Communications holding a majority stake of 74%. Aircel commenced operations in 1999 and today is the leading mobile operator in Tamil Nadu, Assam, North-East India and Chennai. It is India‘s fifth largest GSM mobile service provider and seventh largest mobile service provider (both GSM and CDMA) with a subscriber base of over 63.35 million, as of December 2012 with 62.24% of them being active. It has a market share of 7.33% among wireless operators (includes GSM, CDMA, and FWP operators) in the country. Aircel has also obtained permission from the Department of Telecommunications (Dot) to provide international long distance (ILD) and national long distance (NLD) telephony services. It also has the largest service in Tamil Nadu. Aircel started as a regional player in Tamil Nadu in 1999. Soon, it became the leading operator in Tamil Nadu. At one time, Aircel was the fastest growing operator in India.[ Because of this, it attracted foreign investments and Malaysian operator Maxis Communications bought a 74 percent stake in the company in 2005 from its Indian owner Chinnakannan Sivasankaran.
  30. 30. 30 Chart representing sales of various telecom services providers 25,761.11 14,792.05 6,719.99 4,722.52 3,283.30 1,707.19 957.85 0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00
  31. 31. 31 Environmental scanning Political factors Regulatory on Quality of Services for Telecom Sector Interconnection Regulation for Broadcasting Sector Interconnection Usage Charge Regime Guidelines for 3G Spectrum Auction issued. Foreign Players allowed to bid. Guidelines for Mobile Number Portability Services Dot allows active infrastructure sharing Dual Technology Allowed Number portability proposed. First mover advantage Dominating brand Economic factors Airtel enjoys a very large consumer base in India and Africa, and this continues to be the driver of revenues for Bharti Airtel. Expanding more into the rural market will provide Airtel with more such opportunities to increase revenues and market shares. Airtel's African operations contributed about 20 percent to both its consolidated revenue and EBITDA during the first nine months of FY12. Cost of calls Being Driven Down Worldwide Recession- Both Boon & Bane Middle class consumer base growing due to accelerated economic growth Untapped markets in emerging Economies - New Opportunity.
  32. 32. 32 Social factors Airtel has been very successful in branding itself as ―a brand for successful people‖. It has Consistently come up with advertising campaigns which emotionally affect the Indian Consumers. Earlier, Airtel focused on its plans and tariffs, but now, it advertises in such a way that the user associates emotions and values with Airtel. The ―Express Yourself‖ campaign, the ―Barriers Break when People Talk‖ campaign, and the more recent ―Har Ek Friend Zaroori HotaHai‖ campaigns are excellent examples of how Airtel managed to brand itself in all socio economic classes. The Airtel tune became a rage amongst Indians and it has become the most downloaded ringtone. The rising Indian middle class and higher incomes at their disposals have also ushered in good returns for companies like Airtel. Technological factors First cellular service to provide roaming service and other value added services. Efficient customer care services. E-commerce portal. Introduced and involves in Broadband services, long distance services, and internet services. Equipped with New Technology Rapid Industrial growth rate induced by emerging technologies. Strong Fiber Optic Network Utilization of E- Commerce facilities Efficient Customer Care Services Airtel green environment The Telecommunications sector has been an intrinsic part of India‘s growth story bringing 1.2% of GDP growth with every 10% increase in mobile penetration. This brings far-reaching changes in the lives of urban and rural India by connecting them seamlessly. It is indeed interesting that in addition to urban areas almost 90% of villages today are covered by improved telecommunications. With 800 million subscribers, today one can claim that the industry is the provider of the fourth basic need after food, clothes, and shelter However, there stiff challenges that constraints the industry from providing access and connectivity in the remote areas. The most critical of this is unavailability or limited availability of grid power. On the other hand, the operators are required to meet minimum roll out obligations (coverage) and meet Quality of service levels (network up time) or face
  33. 33. 33 heavy penalties and even loss of their Licenses. To minimize environmental impact, all operators first use battery power and when these run out, switch to diesel generators which increases the cost of operation by three or four times and adds to operational complexities. Despite all challenges and constraints, Bharti Infratel has taken proactive and bold steps to mitigate and improve operations to provide 24x7 network service uptime. Our pioneering Green Towers P7 initiative is a comprehensive energy efficiency and alternate energy programme covering seven high impact initiatives, which are aimed at reducing diesel usage and therefore the carbon footprint. These initiatives include: 1. Alternate energy sources like solar etc.these are clean energy solutions and have today proven their case as a strong alternate to conventional sources of energy. Having already deployed these at around 1050 sites (inclusive of 500 nos. of Indus Towers), which has saved 6.9 mn litres of diesel and around Rs. 280 mn. 2. Energy efficiency measures like Integrated Power Management System (IPMS) and variable speed DC generators (DCDG) – this has reduced diesel consumption by 1.2mn litres andalreadysaved Rs. 47 mn across almost 900 sites where this has been implemented. 3. Demand side management like Free Cooling Units (FCU) instead of air conditioners etc. substantially reducing the electrical load requirement. This has already been implemented across 3400+ sites, saving consumption of 4.1 mn litres of diesel. Bharti Infratel, today, is the only telecom tower company, which has installed almost 3 MWT of solar capacity on our network, generating more than 5 mn units of electricity every year. All this has been creditably achieved despite absence of subsidies on solar unit installations – a move contemplated widely by various agencies and the MNRE for a while now, without any significant action or policy being announced. Within Bharti Airtel, a number of initiatives have been launched last year aiming to reduce energy consumption in lighting and air conditioning areas. The company has installed Solar Hot Water Generator at its main campus in Gurgaon for fulfilling the hot water requirement in the cafeteria. Majority of its facilities across NCR region are now installed with LES (Lighting Energy Savers), which have reduced energy consumption in the lighting system to the tune of 10-25%. Variable Frequency Drives installed in AHU (Air Handling Unit) at its Campus have helped in enhancing the efficiency of cooling system by 10%. These measures have resulted in a saving of 8.5 lakh units of electricity per year. airtel has embarked upon technology related initiatives like virtualization of servers that have helped it release over 500 CPUs. Additionally, we are now moving towards cloud based services to take virtualization to the next level.
  34. 34. 34 Airtel legal environment Airtel would strive to conduct its business in a manner that reflects its vision and brand essence. As the sourcing base expands, airtel will only do business with partners who are committed to a long term relationship focusing on mutual growth and trust. All Partners are responsible for making sure that airtel's vision and brand essence is adhered to when subcontracting any portion of their obligations. Partners are individually responsible for ensuring that their employees understand airtel's vision and brand essence All Partners of airtel must operate within the bounds of all applicable laws. They must also adhere to the governing standards of the country and international countries in which they conduct business. If at any time a Partner ceases to meet any statutory and/or other requirement of the country in which they are doing business, airtel reserves the right to immediately cancel all its outstanding orders with that Partner as well as terminate its agreement with the Partner. Airtel believes in Corporate Citizenship. Airtel is committed to protecting the environment wherever it does business. As a responsible corporate citizen we will favor those Partners who share our commitment to the community and the environment, as well as those who conform to all local requirements regarding environmental codes and guidelines. Porters Five Forces Model Porter's five forces" is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It uses concepts developing economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive ―industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition‖. Reduce costs. Systems, Backhaul (core Infrastructure networking and Industrial Organization). Threat from Competition Customer Bargaining Power Threat of Substitutes Supplier Bargaining Power Threat of New Entrants
  35. 35. 35 Buyer power Supplier power Threat from substitutes Threat from competition Threat of new entrants Buyer power Switching cost for Airtel connection is low. Government is also introducing Number portability which will lead to further switching between the operators if the prices and services are not met. The Voice and message based services are moving toward a commodity as the competition now depends mostly on the prices as the services are similar across the operators. The customers are demanding more value for money which has lead to introduction of pay per second plans Buyers want more and more value added service at cheaper prices. So this provides buyers to act according to the situation as well as their need and preferences. Supplier power The supplies in Mobile sectors primarily comprise of Switch Suppliers, Tower Service providers and the Handset providers. Here are few tie ups of Airtel India limited with few of the major top listed companies. Network Equipments: There are limited network equipment like Zte, Nokia ,Siemens, Ericsson, and Huawei due to increase in demand and limited suppliers the power of these suppliers are high and may impact the growth plan of the operators if supplies are not smooth. Tower Providers: Though the new sharing technology has helped in utilizing the towers but still the coverage remains a problem due to few Tower provider bargaining power of Tower providers is high. Handset Suppliers: Nokia, Samsung, LG, Sony, iPhone and numerous other players. The bargaining power of Handset Suppliers is less as they are also competing amongst themselves.
  36. 36. 36 Threats of Substitutes Wimax allows VOIP which may be threat in future since ISP can operate it with low cost. Landline CDMA services provided by the Tata consultancy services is also a threat for Airtel as Airtel does not deals in cdma market. Video Conferencing is a major threat to Airtel out of all. The voice over internet protocol (VoIP) like Skype, gtalk, Yahoo Messenger is getting popular so it is giving a tough competition to the Airtel E-Mail & Social Networking Websites like face book, orkut, twitter, linked in etc. The threat of substitutes is high as the alternate models are much with similar quality and service, so Airtel need to check on these factors. Threat from competition The entry of other cellular players like Tata, Vodafone, Reliance, Idea, Aircel and commencement of Wireless local loop (WLL) services has resulted in intense competition in the bigger cities. Reducing tariffs will hurt the new entrants, as they will be unable to recover their high capital investments. Airtel emerge as the leader in the telecom industry beating the tough competition given by companies like Vodafone, Tata, Aircel, Idea and Reliance. Threat of new entrant Huge license fees to be paid upfront and high gestation period Entry of wimax operators. Spectrum availability and regulatory issues. Rapidly changing technology.
  37. 37. 37 Chapter 3 Marketing strategies
  38. 38. 38 Products of Airtel Airtel Connections Postpaid Airtel Connections Prepaid Airtel Data Cards Airtel Blackberry phones Airtel I –Phones Airtel Digital T.V. Airtel connections Postpaid Airtel provides us a wide range of services. If you are a mobile user then Airtel postpaid is just what you might have been looking for. With Airtel postpaid you have unlimited freedom to remain connected with your loved ones and to control your life. It has an excellent billing facility. All you need is to log on to the My Airtel section and you will be able to view your bill with call details for the last three months. The bill payment is also very easy. Airtel connections Prepaid Airtel comes to you from Bharti Airtel Limited, India‘s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. There are world of limitless possibilities with Airtel Prepaid. The service that helps you gives words to every feeling, an expression to every emotion. Airtel aim‘s to help you as quickly and as efficiently as possible at first point of contact a customer has an opportunity to email them directly or use customer care telephone numbers & quick links to store locations, payment centers and much more. Airtel data cards With the Airtel Data Card, you have the freedom to access the internet anytime, anywhere across the Pan Indian Airtel Network. Not just that, you can also avail of this service as you roam internationally. The Airtel Data Card, which is EDGE and GPRS enabled, has the features of a SIM card, which enables you to send and receive SMS. What's more is that the Airtel Data Card is much faster than a GPRS connection and is compatible with Windows 2000/XP/XP Tablet/XP Pro & Mac operating systems. Thus you are in touch with your partners and your clients, always.
  39. 39. 39 Airtel Blackberry phones On 19 October 2004 Airtel announced the launch of a Blackberry Wireless Solution in India. The launch is a result of a tie-up between Bharti Tele- Ventures Limited and Research in Motion (RIM). Presenting the BlackBerry® Smartphone - the world's most desired integrated communication device on Airtel. Now be constantly accessible on mail, talk on phone and surf the internet at the same time, schedule and coordinate appointments in the middle of meetings, raise approval request, log in orders, update business databases and stay connected to your colleagues, customers, friends and family – from anywhere, anytime. Airtel I phones The iPhone 3G was rolled out in India in 2008 by Airtel. However, high prices and contract bonds discouraged consumers and it was not as successful as the iPhone is in other markets otherworld. Airtel introduced the iPhone 4 on 27 May 2011 and the iPhone 5 on 2 November 2012 Airtel digital TV Airtel digital TV is an Indian direct broadcast satellite service provider owned and operated by Bharti Airtel. Its satellite service, launched on 2008, transmits digital satellite television and audio to households in India. It uses MPEG-4 digital compression with DVB- S2 technology, transmitting using the satellites INSAT-4CR 74°E and SES-7 108.2°E. Airtel Digital TV service was launched on 8 October 2008.As of 13 December 2012; Airtel has total 304 Channels and Services including 17HD channels. Its primary competitors are cable television and other DTH service providers—Reliance Big TV, DD Direct+, Dish TV, Tata Sky, Sun Direct, and Videocon D2H. It has a total subscriber base of 7.9 million as of 31 January 2012
  40. 40. 40 Services provided by AIRTEL
  41. 41. 41 Airtel voice services: Businesses need to invest in resources in a multimodal communication environment to offer seamless customer experience. Our voice solutions help you communicate and collaborate within and beyond your organization, helping you meet the demands of growth. Managed Voice Solutions (MVS) from Airtel business allows you to create greater business values. MVS helps you drive improved efficiencies and cost savings on international calling by analyzing your organization's usage patterns and business needs. With MVS from Airtel business, you now have a one-stop, international voice calling solution for inbound and outbound calls. So, call for MVS from Airtel business and enable your organization to achieve more and create more smiles per cubicle. Airtel mobile services : The different services under mobile data are BlackBerry services, a web-enabled mobile email solution working on 'Push Technology', USB modem that helps in getting instant access to Internet and corporate applications, Airtel Data Card that gives the liberty to access the internet anytime, Easy Mail is a platform that provides access to personal/corporate e- mails independent of handset operating system and application services that shorten the queues at the billing section, off-load the pressure on the billing staff and bring convenience to the user. Airtel internet service: Through our extensive network infrastructure across Trans-Atlantic and Trans-Pacific routes, we offer you an option to transfer your traffic through the shortest path and lowest congestion route. Best route selection is done dynamically on Airtel backbone and the traffic is routed through the most appropriate path. Your browsing needs are varied. We provide you with a host of customized services that fit your particular needs. Be it managing your Internet, better latencies to other countries, need based Internet capabilities, dual Pops or higher uptimes; we work with you to give you the best. Airtel business services In today's competitive world, your business faces the challenge of presenting a more professional look to its customers and to its employees. To overcome this challenge what you need is a set of state-of-the-art services that help you to collaborate and communicate better within the organization. This is why Airtel and Microsoft Office 365 have joined hands to give you the extra value and the extra edge to scale your business to new heights: Extra value: End-to-end solutions from one technology partner Extra edge: Airtel connectivity bundled with Office 365 brings extra productivity gains for your organization there are two kinds of solutions offered by Airtel.
  42. 42. 42 4 p’s of Airtel Product Price Place Promotion Product MOBILE SERVICES: Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers.  PREPAID  POSTPAID  BLACKBERRY  SMART PHONES  CALLING CARDS AIRTEL TELEMEDIA SERVICES: The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with India‘s best direct to home (DTH) service digital TV in more than 150 cities  BROADBAND  FIXED LINE ENTERPRISE SERVICES: Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier customers. This division comprises of the Carrier and Corporate business unit. Enterprise Services is regarded as the trusted communications partner to India's leading organizations, helping them to meet the challenges of growth. DIGITAL TV SERVICES: Discover the magical experience of digital entertainment with Airtel. From DVD quality picture and sound, the best and widest variety of channels and programmers to the best on-demand content on Airtel Live, your TV viewing experience change forever with digital TV from Airtel!  DIGITAL TV  DIGITAL TV INTERACTIVE
  43. 43. 43 Price Customer based pricing strategies. Flexible pricing mechanism Controlled by TRAI. GPRS Tariff for BSNL Option-I Portal access Prepaid Services Cell one portal.WAP sites. Browsing on internet.Cellone portal.WAP sites. Browsing on internet.Cellone portal.Cellone portal.WAP sites. Browsing on internet. Activation charges50/-(Initially free for 3 months) 50/-(Initially free for 3months) Airtel has customer base pricing strategies. PREPAID TARIFF‗s ONE TIME CHARGES Pulse Rate Per Minute Price of Pack (Rs.) 31 Free Airtime on Pack (Rs.) 0 Incoming Calls (Rs.) Free CALL CHARGES Airtel GSM/CDMA Landline Local Rates .50 .60 paise .60 paise paise STD Rates .50 paise .60paise .60 paise SMS Local 1RS National 1.5 RS International 5 RS
  44. 44. 44 POSTPAID TARIFF ONE TIME CHARGES Activation Charges 500 Membership Fee 0 Security Deposit 0 MONTHLY CHARGES (FIXED) (Rs.) Bill Plan Charge 233 CALL CHARGES CLIP 00 Airtel GSM/CDMA Landline Local Rates 0.5 0.5 0.5 STD RATES STD Rates 1.5 1.5 1.5 SMS Local 0.5 RS CDMA 0.5 RS National 1.5 RS International 5 RS VAS 3 RS
  45. 45. 45 Place Strategic Issues in Distribution Flow of information in channel members. Availability of products on required time frame. Control over the channel. Availability of promotional items to the channel. Claim settlement should be solved within the committed time. Conflict between the channel members should be taken care by the company. Promotion • Large scale print and video advertising. • Big celebrities like SRK and Sachin Tendulkar are roped in to endorse the product. • In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is perhaps the most downloaded tune in India. • Provides innovations such as Bollywood movie premiers, music services such as ring back tones & many more. • Friendz" pre-paid connection for youth," Ladies Special" plan, seniors plan. • Executive‘s corporate plan (First to give prepaid in this category). • Special discounts in calling rates & sms services. • Providing wallpapers and screensavers on website.
  46. 46. 46 Segmentation, Targeting & positioning Segmentation Good use of marketing strategy is well represented by the example of Airtel in India. India is the world‘s fastest growing telecom market, and has one of the largest mobile phone subscribers in the world. A slew of mobile services companies have cropped up, but Airtel continues to remain a dominant player in the market with the maximum market share. Airtel meticulously segments its market. Apart from the geographic segmentation, which divides the Indian market into east, west, south, north and central regions, the market is also segmented in each region on the basis of age and income. The different geographic regions are handled independently and different campaigns are run according to the tastes and preferences of people in each region. Under each region, age and income play an important role in determining the extent of mobile usage. Bharti Airtel Limited is a leading integrated telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 5 mobile service providers globally in terms of subscribers. In India, the company's product offerings include 2G, 3G and 4G services, fixed line, high speed broadband through DSL, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G mobile services. Bharti Airtel had over 246 million customers across its operations at the end of February 2012. Hence Airtel caters to two different categories each in age and income. It targets younger population by providing them cheap call/msg rates at night and also cheap SMS plans, while the elder population is targeted by plans for calls at reasonable rates. In the income categories, the lower income people are targeted by offering them cheap and affordable lifetime validity prepaid cards, that can be used for incoming calls; while the higher income groups are targeted by offering them premium services like VAS(value added services), GPRS plans and 3G technology. Behavior Segmentation benefits segmentation, demographic segmentation, market niche, mass customization. : East Region (West Bengal, Assam, Arunachal Pradesh etc.) West Region (Gujarat, Rajasthan, Maharashtra etc.) South Region (Andhra Pradesh, Karnataka, Kerala etc.) North Region (Punjab, Haryana, Himachal Pradesh etc.) Central Region (Madhya Pradesh, Chhattisgarh, Jharkhand etc.)
  47. 47. 47 Targeting of Airtel Airtel has targeted the premium and upper middle class. The motto behind this is only those segments should be targeted who value time and have the paying capacity. During the introduction stage there was a huge pressure to get consumers across to hook up with their brand, because getting them to Airtel by their earlier brand and switching their brand loyalty was too tough. Airtel marketers have been concentrating totally on the business executive class but now that the basic viable volumes has been built up and prices have declined to a certain extent they are planning to venture further field. Targeting Areas Professionals by giving free calls in postpaid connections. Entrepreneur by giving various plans in which they may get internal calling free. Youth with the „FRIENDZ‟ Scheme. Targeting Students by introducing postpaid connection only for students and with zero rentals. Elite group (above 25 years of age!) Corporate People and Business men Targeted youth by introducing YOUTOPIA PLAN. Targeted women and senior citizens. Positioning of Airtel The product is supposed to be a business efficiency tool. A lifestyle revolution and a status symbol. The emphasis is to remove misconception that the cell phone is an expensive means of communication. It‘sadaytodayusecommodityandisnomoreasymbolofstatus. When it comes to Airtel who can forget the melodious, sweet music of its composed by A.R.Rehman. The music attracts us in various forms such as chorus, whistle, and piano and in many other forms. The latest advertisements of Airtel ―Jo tera hai who mera hai‖ and ―Kyun ki hare k friend jaruri hot hai‖ have created a brand image in the minds of youngsters. This is one of the positioning strategies of Bharti Airtel. Tagline- ―power to keep in touch Leadership series‖ campaign Positioned in premium category aimed at elite class of society Perception of inspirational and lifestyle brand. Airtel decided that the brand should always connote leadership - be it in network, innovations, offerings or services the advertisement which changed the whole look of Airtel in the minds of Indian consumers was full with emotions and reactions, which one will experience in a lifetime
  48. 48. 48 Airtel distribution channel In Urban Areas Airtel directly supply its products to the distributors in Urban Areas through Territory Manager distributes the products as per demand for individual distributors, Which is scheduled as per the target for the territory? In urban areas the Margin for the Distributor is 1.3%. Distributor distributes the products to the FSEs‘. Their job is to supply those products to the Retailers. The Retailers margin is 2.7% (2.5% margin on RCV Rs.10/- and for all other RCVs the Margin is 2.7%). So, from this above analysis and distribution channel system, the outcomes are. The company is spending nearly 4% in Urban Areas. In Rural Areas the company is spending a margin nearly 4.5%. (So the company has been taken a great step in sales maximization in rural areas that they will be able to reduce the margin and will not have a loss in rural areas.) In rural areas Some procedures is followed in rural areas but the distribution system is completely different from urban areas and the margin is also different from company‘s supply system to the territory manager is same as procedure as per urban areas. The product at first is distributed to the rural super (RS) .They have a margin of 0.7%. Products are supplied from RS to the RD (rural distributor). As per same urban system few FSb work under each RD and they supply the product to the individual dealer. Stock system in distribution The complete stock maintenance procedure is categorically divided in two parts Stock to be maintained by Distributor Stock to be maintained by Retailer In the case of Distributor: The distributor has to keep the LAPU balance for minimum 7 days; Here 35% of the value must be in RCV. In the case of Retailer: The retailer has to keep LAPU balance for 3 days (minimum amount Rs.1500); Here 33% of the value must be in RCV. (The FSE visits each Outlet in alternative days whether there is any shortage of product or not. The supply system of Airtel is so strong that a Retailer will never go with shortage of product. It is also a compulsory task for each FSE to go and to ask Retailers whether there is any shortage of product, once in every 2 days.)
  49. 49. 49 Airtel promotional strategy After 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 the five major players being Bharti Tele-Ventures Limited (Bharti), Bharat Sanchar NigamLimited (BSNL), Hutchinson-Essar limited (Hutch), Idea Cellular limited (Idea) and Reliance India Mobile (RIM) (Refer Exhibit I).All the players except RIM offered services based on the Global System for Mobile (GSM)technology. RIM provided services based on Code Division Multiple Access (CDMA) technology as well as GSM. As competition in the telecom arena intensified, BHARTI AIRTEL took new initiatives to woo customers. Prominent among these were - celebrity endorsements, loyalty rewards, discount coupons, business solutions and talk time schemes. AIRTEL has used most number of celebrities for advertisements. The list includes-Sachin, Shahrukh, Rehman, Saif Ali Khan, Kareena Kapoor, Zaheer Khan Etc.The most important consumer segments in the cellular industry were the youth segment and the business class segment. The youth segment was the largest and fastest growing segment and was therefore targeted most heavily by cellular service provider. Airtel promotional mantra Core Competencies Product Innovation VAS Marketing and Branding Pricing
  50. 50. 50 MANTRA Focus on Core Competencies and outsource the rest! Managed to work with the best of domain specialists globally and emerge as a world class entity. Operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants. Higher emphasis on ARPU/min – stark contrast with other operators who concentrate on ARPU only. Aim to be become a one stop shop for all telecommunication services under the Bharti umbrella. Exploring opportunities in international markets. Hived off tower infrastructure into a separate entity. Translate its expertise in Indian markets to other emerging economies. This could call for acquisitions globally. Technology leadership is a must – Airtel must ensure that its reliance on GSM technology does not render it obsolete. Indian market in spite of being the world‘s largest is still not matured. Opportunities abound in the hinterland which must be exploited. New campaign launched to facilitate entry into new markets Started to capture mass market new logo for Airtel- Red, black and white colors with ‗Airtel‘ enwrapped in an eclipse. New campaign launched to facilitate entry into new markets Started to capture mass market A new logo for Airtel- Red, black and white colors with ‗Airtel‘ enwrapped in an eclipse. Logo indicated core value of the brand: leadership, performance and dynamism. Key promotional strategies of Airtel: Bharti has spent a considerable amount on advertising its mobile phone service, Airtel. Besides print advertising, the company had 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 build brand preferences. It is trying to set up a thematic campaign to build stronger brand equity for Airtel. Since the cellular phone category itself is too restricted, also the fact that a Cellular phone is a high involvement product, price doesn't qualify as an effective differentiator. The image of the service provider counts a great deal. Given the Cell phone category, it is the network efficiency and the quality of service that becomes important. What now the buyer is looking at is to get the optimum price-performance package. This also serves as an effective differentiator Brand awareness is spread through the' campaigns and brand preference through brand stature. Airtel's campaign in the capital began with a series of 'teaser' hoardings across the city,' bearing just the company's name and without explaining what Airtel was. In the next phase the campaign associated Airtel with Cellular only thereafter was the Bharti Cellular connection brought up. Vans with Airtel logos roamed the city, handing out brochures about the company and its services to all consumers. About 50,000 direct callers were sent out. When the name was well entrenched in the Delhiites‘s mind, the Airtel campaign began to focus on the utility of Cell phone. In the first four months alone Airtel‘s advertisements spend exceeded Rs. 4 crores. Brand strength of a product or the health of a brand is measured by the percentage score of the brand on the above aided and the unaided tests. The figures show that Airtel is a healthy and a thriving brand.
  51. 51. 51 Promotional strategies of AIRTEL Advertisements Sales promotion Publicity and events AIRTEL ADVERTISEMENT Airtel basically uses two appeals to connect to the users are Emotional & Humorous Total advertising budget of Airtel is Rs. 150 crores INTERNET ADVERTISING • Massive advertising through • Google Ad Sense • BidVertisers • Sponsor online games at Zapak.com SALES PROMOTION • ―Friendz‖ pre-paid plan • ―Ladies special‖ plan • ―Senior citizen‖ plan YOUTOPIA PLAN • Special tariff plan for youth- Youtopia • Reduced tariffs, access to cell phones • 14-19 years of age • Expand customer base (limited to the older age groups till now) • Deviation from earlier positioning for older people symbolizing dignity and power • Re 0.25 for 30 seconds- night!, special bidding Portal, music download facilities, SMS at Affordable prices
  52. 52. 52 PUBLICITY AND EVENTS Sponsored events • Delhi half marathon • Delhi golf tournament • Airtel border- gavaskar trophy • Airtel champions league Sponsored TV shows Big Boss KBC Are you smarter than a 5 grader Power to keep in touch strategy Positioned in premium category aimed at elite class of society Convey power of instant communication Perception of aspiration and lifestyle brand Airtel decided that the brand should always connote leadership–be it in network, innovations, offerings, services Sponsored games like Golf. Touch tomorrow” event New campaign launched to facilitate entry into new markets Started to capture mass market A new logo for Airtel- Red, black and white colors with ‗Airtel‘ enwrapped in an eclipse. Logo indicated core value of the brand: leadership, performance and dynamism translate its expertise in Indian markets to other emerging economies. This could call for acquisitions globally. Technology leadership is a must – Airtel must ensure that its reliance on GSM technology does not render it obsolete. Indian market in spite of being the world‘s largest is still not matured. Opportunities abound in the hinterland which must be exploited
  53. 53. 53 Chapter 4 Financial Analysis
  54. 54. 54 Sources of finance Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 12 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital 1,898.80 1,898.80 1,898.77 1,898.24 1,897.91 Equity Share Capital 1,898.80 1,898.80 1,898.77 1,898.24 1,897.91 Share Application Money 0.00 278.60 186.09 116.22 57.63 Preference Share Capital 0.00 0.00 0.00 0.00 0.00 Reserves 47,528.70 41,932.10 34,650.19 25,627.38 18,283.82 Revaluation Reserves 2.10 2.10 2.13 2.13 2.13 Net worth 49,429.60 44,111.60 36,737.18 27,643.97 20,241.49 Secured Loans 2.90 17.10 39.43 51.73 52.42 Unsecured Loans 14,126.50 11,880.40 4,999.49 7,661.92 6,517.92 Total Debt 14,129.40 11,897.50 5,038.92 7,713.65 6,570.34 Total Liabilities 63,559.00 56,009.10 41,776.10 35,357.62 26,811.83
  55. 55. 55 Profit and loss account Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Income Operating income 41,603.80 38,015.80 35,609.54 34,048.32 25,761.11 Expenses Material consumed 18.30 244.10 313.63 281.65 33.85 Manufacturing expenses 17,171.10 14,204.20 11,882.41 8,627.13 7,339.01 Personnel expenses 1,337.90 1,304.50 1,401.66 1,397.54 1,297.88 Selling expenses 2,893.30 3,180.20 2,404.91 2,210.43 1,842.51 Administrative expenses 6,458.70 5,680.00 5,982.64 8,608.03 4,588.53 Expenses capitalized - - -293.31 -269.25 - Cost of sales 27,879.30 24,613.00 21,691.93 20,855.54 15,101.78 Operating profit 13,724.50 13,402.80 13,917.61 13,192.78 10,659.34 Other recurring income 245.60 154.90 148.98 235.99 266.91 Adjusted PBDIT 13,970.10 13,557.70 14,066.60 13,428.77 10,926.24 Financial expenses 1,199.30 296.70 283.35 434.16 393.43 Depreciation 5,916.00 4,193.70 3,890.08 3,206.28 3,166.58 Other write offs - 417.90 207.84 178.82 266.07 Adjusted PBT 6,854.80 8,649.40 9,685.32 9,609.50 7,100.16 Tax charges 1,226.20 1,007.60 1,177.87 321.78 632.43 Adjusted PAT 5,628.60 7,641.80 8,507.45 9,287.72 6,467.73 Nonrecurring items 83.90 63.30 969.48 -1,497.74 -162.87 Other non cash adjustments 17.50 11.80 -50.78 -46.15 -60.67 Reported net profit 5,730.00 7,716.90 9,426.15 7,743.84 6,244.19 Earnings before appropriation 39,212.00 34,495.40 27,928.98 19,541.05 11,778.12 Equity dividend 379.80 379.80 379.79 379.65 - Preference dividend - - - - - Dividend tax 61.60 60.10 64.54 64.52 - Retained earnings 38,770.60 34,055.50 27,484.65 19,096.89 11,778.12
  56. 56. 56 Ratio analysis years MAR’12 Mar '11 Mar '10 Mar '09 Mar'08 Current Ratio 0.70 0.70 0.70 0.69 0.57 Quick Ratio 1.28 0.77 0.67 0.65 0.55 Debt Equity Ratio 0.29 0.27 0.14 0.28 0.33 Long Term Debt Equity Ratio 0.17 0.21 0.12 0.26 0.3 fixed Assets Turnover Ratio 0.84 0.82 0.88 1.00 1.0
  57. 57. 57 BALANCE SHEET Particulars Mar 2012 Mar 2011 Mar 2010 Mar 2009 Mar 2008 SOURCES OF FUNDS Share Capital 18988.00 18988.00 18988.00 18982.40 18979.07 Share warrants & Outstanding 0.00 2786.00 1861.00 1162.17 576.34 Total Reserve 472377.00 419342.00 346523.00 256295.07 182859.53 Shareholder's Funds 494296.00 441116.00 367372.00 276439.64 202414.93 Secured Loans 29.00 171.00 394.00 517.30 524.24 Unsecured Loans 108898.00 100650.00 49995.00 76619.17 65179.17 Total Debts 108927.00 100821.00 50389.00 77136.47 65703.42 Total Liabilities 603223.00 541937.00 417761.00 353576.12 268118.35 APPLICATION OF FUNDS : Gross Block 669068.00 614374.00 442125.00 372667.02 281156.52 Less: Accumulated Depreciation 264660.00 207367.00 161875.00 122533.44 90850.04 Less: Impairment of Assets 0 0 0 0 0 Net Block 404408.00 407007.00 280250.00 250133.59 190306.48 Lease Adjustment A/c 0 0 0 0 0 Capital Work in Progress 44665.00 64792.00 15947.00 25666.69 27510.79 Pre-operative Expenses pending 0 0 0 0 0 Assets in transit 0 0 0 0 0 Investments 219065.00 192001.00 157733.00 117777.58 109528.53 Current Assets, Loans & Advances Inventories 0 344.00 272.00 621.51 568.61 Sundry Debtors 0 23758.00 21050.00 25500.49 27764.57 Cash and Bank 0 1338.00 8167.00 22516.03 5029.39 Other Current Assets 0 1015.00 664.00 1197.13 997.27 Loans and Advances 0 167296.00 110090.00 71494.72 45760.20 Total Current Assets 0 193751.00 140243.00 121329.88 80120.04 Less : Current Liabilities and Provisions Current Liabilities 0 147963.00 122848.00 131179.82 119090.69 Provisions 0 70535.00 53531.00 33423.78 19620.14 Total Current Liabilities 0 218498.00 176379.00 164603.60 138710.83 Net Current Assets 0 -24747.00 -36136.00 -43273.72 -58590.79
  58. 58. 58 Chapter 5 Key learning’s from the company and recommendations
  59. 59. 59 Performance analysis of Bharti Airtel Bharti airtel has once more emerged as the number one telecom operator in india with revenue amountinto RS.13229 crorefor the quarter ending on june 2012.According to newly released trai figure bharti airtel has retained the highest spot among the top 15 wireless operators in the country based on revenue . However the airtel net profit saw a fall of 28 % in the same quarter registering profits of rs 1215 crore as compared to rs 1681 core in Q1 last year.the the decline in net profit was due to increase in net interest outgo ($333million) forex restatementcharges in india ($59 million). The consolidated EBITDA margin for the year as reported in the last quarter also declined by 6.5% over the previous year , which was attributable to pricing pressure in INDIA and SOUTH ASIA and the lower margin in african operations acquired during the year according to the statement release by the operator earlier this quarter. Bharti airtel has most recentlyupped its prepaid voice tarrifs in india by 20 percent the second operator to do so after TATA DOCOMO , which had started this trend in july 2012 . It is assumed that the the measure such as this To increase ARPU‘s as well the recent restructing that the company underwent has assisted it to improve the margin of profit.
  60. 60. 60 Airtel diversification Because, while Airtel launched its operation in Sri Lanka, Airtel just focused on competition rather than customer requirements, as this result, Airtel set price for 2 rupees outgoing for any networks. Whereas, this scheme was absolutely perfect than Airtel‘s competitors, as no network providers have such least pricing scheme. However, Airtel failed to impress whole Sri Lankan mind on Airtel‘s first encounter, because whole Sri Lankans‘ have grater expectation on Airtel and its services. Therefore, most of customer‘s requirements‘ were disappointed. Therefore; I would like to summarize my report into six dimensions, which I got via my market research. Those are Customer Expectation and Satisfactions, Coverage Area, Value Added Services, Pricing Strategies, Promotional Strategies and Other Strategies. Airtel adopted the same philosophy while launched in Sri Lanka. As this result, Airtel fail to consider the customer requirement. As Airtel is an Indian company and has very good reputation not only in India also in Sri Lanka, customer expect more least cost offering than existing companies, such as Dialog, Mobitel, Tigo and Hutch. They expect Airtel to satisfy into two different aspects, which are free outgoing or SMS between Air-Air and Satellite network. Reasons for expansion of Airtel First to launch cellular service in 1995.First operator to revolutionaries the concept of retailing with the inauguration of Airtel connect exclusive showroom in 1995.First to introduce push buttons phones in India. First to expand its network with the installation for second mobile switching centre in April 1997 and the first to introduce the intelligent network platforms First to provide roaming to its subscribers by forming a network called I network. First to provide roaming facility in USA. Enjoy the roaming across 38 partner networks and above 700 cities moreover roam across international destinations in 119 countries including USA, CANADA & UK with 285 partner networks Contraction of Airtel A consensus forecast by a poll of 26 economists showed factory production likely fell by 0.7 percent in February on a year earlier, following a 2.4 percent surge in January. Before that surprise rise in January, industrial output had contracted in seven of the previous 10 months. Another fall does not bode well for Asia's third-largest economy, as it struggles to recover after a decade low annual growth rate in the fiscal year that ended in March. Core infrastructure has dropped very sharply... it wouldn‘t't be a big surprise at all if IP came off quite sharply," said Manoj Kohli Managing Director at Capital Economics in Singapore, who forecasts a 3 percent contraction.
  61. 61. 61 Comment on organizational leadership of Airtel New Delhi, January 13, 2010: Bharti Airtel Limited, one of Asia‘s leading telecom services provider, today announced strategic organizational changes with the objective to enhance its focus on expanding operations to international markets beyond India and South Asia and further consolidate its leadership position in India. The company announced the creation of a new, empowered and dedicated International Business Group that will be responsible for expanding the company‘s operations beyond India and South Asia region. Manoj Kohli, who is currently the CEO (India and South Asia) & Joint MD of the company, will head the International Business Group as CEO (International) & Joint MD and will continue to be a member of the Bharti Airtel Board. The International Business Group will comprise a team of seasoned and experienced professionals, including from within the Bharti group, from areas such as Business Development, Networks & IT, SCM, Project and Performance Excellence, Brand and Customer Experience. Sanjay Kapoor, currently the Deputy CEO of the company, will be elevated to the position of CEO (India and South Asia), Bharti Airtel. Sanjay would have end-to-end responsibility of leading India and South Asia businesses of Bharti Airtel and will drive growth and business synergies in Mobile Services, Telemedia Services, Enterprise Services and DTH. He will lead Bharti Airtel towards strengthening its position as a benchmark in innovative practices, brand leadership, operational efficiency, and customer value and leadership depth. Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel said, ―The next phase of our journey is set to be another game changer – requiring superior thrust and focused leadership. We continue to win in the Indian telecom market, which is going through a phase of hyper competition. At the same time, we will be developing comprehensive plans for our journey to cover emerging markets beyond India and the South Asia.‖ Bharti Airtel has one of the finest management teams in the country and a strong leadership pipeline. This new structure will leverage our management depth and build a strong platform for fulfilling our global vision. Manoj and Sanjay are amongst the finest professionals in telecom industry not just in India but across the world and have contributed immensely to the success of Bharti Airtel. I wish both of them the very best for their new assignments.‖ added Mr. Sunil Bharti Mittal. Both Manoj and Sanjay will report to Sunil Bharti Mittal, Chairman & Managing Director, and Bharti Airtel. The new organization structure is effective 01 April 2010. We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more‖ Bharti Airtel has enjoyed an excellent run ever since the telecom sector opened. It has managed to hold on to its leadership position in spite of the presence of other players with deep pockets – Ambani‘s, Tata‘s, Birla‘s and Vodafone. Has coped well with regulatory changes. Continues to attract and delight customers.
  62. 62. 62 Market Share of Airtel vodafone, 20. 70% Bharti airtel, 33.38% BSNL, 10.20% RELIANCE COM, 11.50% Idea cellular, 12.10 %
  63. 63. 63 Growth rate of Airtel Largest Private Integrated Telecom Company in India 3rd Largest Wireless Operator in the World Largest & Fastest Growing Wireless Operator in India Largest Telecom Company listed on Indian Stock Exchange Fastest Growing Sector – CAGR 22% (2002-07) Second Largest Telecom Market Lowest tariff charges in the world Wireless Subscribers – 315.3 million Wire line Subscribers – 38.4 Million Teledensity – 30.61 million 23 Circles - 4 Categories ( Metro, A, B & C) Bharti Airtel – Largest player with presence in 23 Circles GDP growth rate - Averaged around 7.9 % from 2002-2008 Rising Tele-density – Target of 45% by 2010 Growing per capita income/disposable Income Rs 12000 in 2002 to Rs 33000 in 2008) Falling Handset Prices Moderate inflation levels which were prevalent during the past 7 years – around 5-6
  64. 64. 64 Subscriber growth Year Overall Subscriber Base Airtel Subscriber Base Market Share Mar-08 2,61,54,405 42,16,317 16.12087 Mar-09 4,10,25,940 1,04,78,585 25.54136 Mar-10 6,91,93,321 1,95,79,208 28.29638 Mar-11 12,14,31,166 3,71,41,210 30.58623 Mar-12 18,44,13,702 6,19,84,721 33.61178 Growth Factors Infrastructure Sharing Managed Services Enterprise Telecom Rural Telephony
  65. 65. 65 Bharti Airtel Swot analysis Strengths Cost advantage Current leaders in quality service Largest distribution network Ability to constantly innovate Highly skilled workforce Entrepreneurial zeal Weaknesses Price pressures Need for Government support Awareness Sales and Marketing The main weakness of the company is that company does not provide same tariff plans for both postpaid and prepaid users. Customer is not happy from company marketing policy. He wants company will start special tariff plans. Most of the customer's problem is that n company person comes at the shop for listening their problem. Company top management not declares the scheme before one or two days. That's why catalogue not prepared by the lower level management scheme.
  66. 66. 66 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 competitors‘ Company should do something for customers interest by providing beneficial scheme and good relation to customer otherwise its other competitor will develop and they will capture its market. Connection selling is very much depending on customer, if customer is not happy then sale can be affected in future. Company should prepare some future plan for maintaining its market share because more and more competitors are coming in the market.
  67. 67. 67 Chapter 6 Findings
  68. 68. 68 Findings Most people fell that AIRTEL signal is good Only half of the people are satisfied with the customer care services 30% of the people are not satisfied with the customer care employees response More than half of the people are satisfied with the Internet services Only very few people say that Internet speed is high A very large number of people get 100-200 recharge per month Up to half of the people had used connections other than AIRTEL But most of the people find that AIRTEL is better than other network Company should encourage to solve the customer complaint customer satisfaction should be the ultimate aim of the organization so customer complaints should be removed Promotion by local advertisement & on electronic media more as to print media
  69. 69. 69 Chapter 7 Conclusions and Suggestions
  70. 70. 70 Conclusion Market leader among Mobile service providers in India. Most successful brand in India with largest market share. Success is based on three pillars- connectivity, affordability and innovation. The core is connectivity, i.e. the network Doesn‘t promote its product always by celebrities. Pre paid services are more expensive than post paid service. Only high tariff cost matters in sales maximization. Airtel has a good reputation as a telecom brand worldwide. People prefer Airtel in Delhi because of its network coverage all over the state including rural areas. Suggestions Along with using various celebrities for endorsements, AIRTEL should try to introduce Advertisements with some sort of humor. The majority of perspective customers are teenagers, so AIRTEL ads should be more focused around them The people now days have started using more and more internet, so along with TV Advertisements, AIRTEL should give more attention to online advertisements. People give very less attention to the print ads, so these ads should be mainly informative ads i.e. the ads giving information about new schemes and recharge coupons etc. The research was carried out taking care of each & every small points which can alter The results but still there were some limitations that must be acknowledged The respondents chosen were mainly from cities. So the results don‘t include the Responses of rural customers.
  71. 71. 71 Bibliography Books Havalder K.K. and Savant M.C. (2007), ―Sales and Distribution Management‖, Tata McGraw-Hill, New Delhi. Philip Kotler and Kevin Lane Keller (12e), Marketing Management, Pearson. Mamoria, C.B and Gankar, S.V (2002) ―Personnel Management‖ Published by Himalaya Publishing House. Virmani, B.R. And Seth Premila (1985) ―Evaluating Management Training and Development‖ Published By Vision Book Pvt Ltd. Kulkarni M.V, Marketing Research (IV Edition), Everest Publication House, New Delhi, 2003. Websites: www.scribd.com www.12manage.com www.docstoc.com www.citeman.com www.wikipedia.org www.Codeproject.com www.Projectstoday.com www.Freelancer.com www.Slideshare.net www.airtel.in Journals JMR Forbes Business Today Business Week Business
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