ON “Marketing strategies of Airtel” Submitted to U.P. TECHNICAL UNIVERSITY FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF MBA SESSION 2008-2010 DEPTT. OF MANAGEMENT STUDIES TEERTHANKER MAHAVEER INSTITUTE OF MANAGEMENT & TECHNOLOGY, MORADABA(U.P.)Project Guide: Course cordinnator:Ms. Yuvika Gupta Dr. Soni Gupta Submitted By: Saurabh Gupta Roll No. 0814870070 1
STUDENT DECLARATIONI, Saurabh Gupta, student of MBA here by declared that the researchreport entitled “MARKETING STRATEGIES OF AIRTEL” iscompleted and submitted under the guidance ofMiss. YUVIKA GUPTA is my original work. The imperial findingin this report is based on the data collected by me. I have notsubmitted this project report to U.P. Technical University Lucknow orany other University for the purpose of compliance of anyrequirement of any examination or degree.DATE: SAURABH GUPTA MBA III SEM ROLL NO. 0814870070
ACKNOWLEDGEMENTI acknowledge the sincere assistance provided to me from severalrather unexpected quarters during the course of execution of thisstudy. It would be a mammoth task to place on record mygratitude to each and every one of them but a whole heartedattempt would be made nevertheless, least I be brandedungrateful.I am extremely thankful to Mr.Abhishek Yadav, (Unit Advisor) forgiving me an opportunity to undergo training in BHARTI AIRTELMARKETING and making my stay at AIRTEL MARKETING amemorable learning experience.Where the emotions are involved words cease to work. I am deeplyindebt to ---------------------- for her encouragement, affections,valuable advice and guidance that helped me to complete thisproject successfully.
EXECUTIVE SUMMARYThe project aims at understanding the Marketing strategies atAirtel and its impact on the perception of Airtel Cellular Services.Research has demonstrated conclusively that it is far more costlyto win a new customer than it is to maintain an existing one. Andthere is no better way to retain a customer than to exceed hisexpectations. For this purpose it is essential to know the level ofcustomer satisfaction. The focus of my research was themeasurement of customer satisfaction level for the servicesprovided by Bharti Airtel. The research was done for the corporateclients of Bharti Airtel. My job was not only to represent theCorporate Sales Dept. and collect the feedback from the clients butalso to get the major complaints resolved through internalcounselling. There can be no better opportunity to interact with theexternal as well as the internal customers of an organization.Finally the results of the research verify the fact that keeping thecustomer satisfied is the best strategy to not only retain theexisting customers but also to expand the business to newhorizons.
TABLE OF CONTENTS1. TELECOMMUNICATION MARKET IN INDIA 72. GSM MARKET IN INDIA 113. INTRODUCTION 234. TARIFF STRUCTURE 395. PROMOTIONAL STRATEGY 486. MARKET SITUATION 507. COMPETITIVE SITUATION 518. MARKETING STRATEGY ADAPTED BY BHARTI 609. OBJECTIVE 6910. RESEARCH METHODOLOGY 7011.LIMITATION 7112. SWOT ANALYSIS 7913. CONCLUSION 8114. BIBLIOGRAPHY 8215. QUESTIONNAIRE 83
ACKOWLEDGEMENTAchievement is finding out what you would be then doing, what youhave to do. The higher the summit, the harder is the climb. The goalwas fixed and we began with a determined resolved and put inceaseless sustained hard work. Greater challenge, greater was oureffort to overcome it.This project work, which is my first step in the field ofprofessionalization, has been successfully accomplished only becauseof my timely support of well-wishers. I would like to pay my sincereregards and thanks to those, who directed me at every step in myproject work.I would also like to thank the faculty members and the staff membersof “R . S DISTRIBUTORS MORADABAD” for their kind supportand help during the project.
INTRODUCTION TO THE TOPIC TELECOMMUNICATION MARKET IN INDIAThe Indian telecommunications Network with 250m telephoneconnections is the fifth largest in the world and is the secondlargest among the emerging economies of Asia. Today it is thefastest growing market in the world and represents uniqueopportunities for UK companies in the stagnant global scenario.Tele-density, which was languishing at 2% in 1999, has shown animpressive jump to 9.5% in 2006 and 10.5% in 2007 and is set toincrease to 20% in the next five years beating the Govt. target bythree years. Accordingly, India requires incremental investments ofUSD 20-25 bln for the next five years.Private operators have made mobile telephony the fastest growing(over 164% p.a.) in India. With more than 33 million users (bothCDMA and GSM), wireless is the principal growth engine of theIndian telecom industry. Given the current growth trends, cellularconnections in India will surpass fixed line by late 2004/early2005. Intense competition between the four main private groups -Bharti, Vodafone, Tata and Reliance and with the State sector
incumbents-BSNL and MTNL has brought about a significant dropin tariffs. There has been almost 74% in cell phone charges, 70%in ILD calls and 25% drop in NLD charges, resulting in a boomtime for the consumers.The Government has played a key enabling role by deregulatingand liberalising the industry, ushering in competition and pavingthe way for growth. While there were regulatory irregularitiesearlier, resulting in litigation, these have all been addressed now.Customs duties on hardware and mobile handsets have beenreduced from 14 percent to 5 percent.The Indian government has merged the IT and Telecom Ministriesto speed up reforms and decision on the CommunicationConvergence Bill to enable the common regulation of the Internet,broadcasting and telecoms will be taken after the new Governmentassumes responsibilities in may this year. An independentregulatory body (TRAI) and dispute settlement body (TDSAT) isfully functional.INDIAN CELLULAR MARKETThe Bharti Group, which operates in 23 circles, continues to be thecountrys largest cellular operator, with 50 lakh subscribers.BSNL, which operates in 22 circles, has a subscriber base of 37
lakh subscribers. Thus BSNL stands second largest cellularoperator in terms of subscriber base at the end of the fiscal endingMarch 31, 2007, displacing Vodafone from the second position.Vodafone, which operates in only eighteen circles, is the thirdlargest operator with a subscriber base of 32 lakh. Unlike fellowpublic sector undertaking, MTNL, which operates in Mumbai andDelhi, BSNL has been a very aggressive player in the market."Cellular operators who expected BSNL to go the MTNL way, weretaken by surprise and did not take effective steps to counter it, tillit was too late in the day," said a telecom analyst.Belying fears of a slowdown in cellular subscriber acquisitions, thecell club has reported a 7.92% growth, the highest growth in anymonth so far, during March 2005. Year-on-year, the cellularsubscriber base in the country has almost doubled in March 2005,and is expanding at the rate of 25% per year thereafter.The cellular subscriber club expanded by 21.31 lakh last month.This is much higher than 5.9 lakh subscribers added in February2005 and 2.13 lakh in January 2005. Idea, which operates inSeven circles, is the fourth largest operator with a subscriber baseof 17.80 lakh, higher than BPLs 11.31 lakh subscribers acrossfour circles. The subscriber numbers per operator drop sharplywith the sixth largest operator, Spice Communications, having a
subscriber base of 9.40 lakh, followed by Reliance Telecoms 8.9lakh subscribers. MTNL is the ninth largest operator, with a baseof 8.32 lakh subscribers.While the subscriber base-jumped by 3.38% to 44.39 lakh in themetros, subscriber base of category A circles of Maharashtra,Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu jumped by10.18 % to reach 43.64 lakh. Category B circles of Kerala, Punjab,Haryana, Uttar Pradesh (West), Uttar Pradesh (East), Rajasthan,Madhya Pradesh and West Bengal recorded a jump of 10.69%,with a total base of 33.74 lakh subscribers. Circle C has reported12.74 % growth with subscriber numbers jumping to 5.08 lakh.Among the metros, while Mumbai added 1,63,180 subscribers,higher than the 1,58,646 added by Delhi, the Capitals cellularsubscriber base of over 80 lakh is still higher than Mumbais 66.89lakh. While the cellular industry has been on roll for the first threequarters of the previous financial year with an average of 16.75lakh monthly additions in the third quarter, the first two months of2007 had seen the growth slowing down.
GSM MARKET IN INDIARegional Interest Groups - GSM IndiaWith a population of around 1.1 billion growing at roughly 1.7 percent a year, India is potentially one of the most exciting GSMmarkets in the world. After two rather difficult years, the past 12months have seen the regions promise beginning to come tofruition. Much of this success can be attributed to the stabilisationof the licensing and regulatory environment.Indias telecommunications have undergone a steady liberalisationsince 1994 when the Indian government first sought privateinvestment in the sector. More significant liberalisation followed in1996 with the licensing of new local fixed line and mobile serviceproviders. However, it has been the governments New Telecom
Policy (1999) that has had the most radical impact on thedevelopment of GSM services. The policys mission statement isaffordable communications for all, There is a genuinecommitment to creating a modern and efficient communicationsinfrastructure that takes account of the convergence of telecom, ITand media. In addition, the policy places significant emphasis ongreater competition for both fixed and mobile services.Competition in the mobile sector has already had a visible impacton prices with calls currently costing less than 9 cents per minute.This means that service costs have fallen by 60 per cent since thefirst GSM networks became live in 1995. It also helps explain whya recent Telecom Asia survey revealed that more than 70 per centof Indian mobile subscribers felt that prices were now at areasonable level.One of the challenges facing GSM operators in India is the diversityof the coverage regions -from remote rural regions to some of themost densely populated metropolitan areas in the world. India hasmore than 40 networks, which cover the seven largest cities, over7000 towns and several Lacs villages. Such depth of coverage hasrequired enormous investment from Indias operators. It isestimated that more than Rs200 billion had been invested in
Indias GSM industry by mid-2000, a figure that is set to besupplemented by a further Rs. 300 billion over the next five years.The good news is that subscriber growth is beginning to lookhealthy. With Indias low PC penetration and high average Internetusage -at 14-20 hours a month per user it is comparable to the US-the market for mobile data and m-commerce looks extremelypromising. WAP services have already been launched in thesubcontinent and the first GPRS networks are in the process ofbeing rolled out. In the year ahead, GSM India will work with itsmembers to realise the potential of early packet services inanticipation of the award of 3GSM licences.India fastest growing GSM martIndia is expected to have 145 million GSM (global system formobile communications) customers by 2007-08 compared to 26million subscribers as on March 2005, according to the GlobalMobile Suppliers Association. "For GSM, India is a success story. Itis one of the fastest growing markets with its subscriber basedoubling in 2005. At this pace, the target of 150 millionsubscribers by 2007-2008 is definitely achievable," Alan Hadden,president of GSA, said at a news conference in New Delhi. Globally,the GSM market reached 1 billion users in February 2005, he said,
adding GSM accounted for 80 per cent of the new subscribergrowth in 2005."Almost every Latin American operator has chosenGSM. In North America GSM growth is bigger than CDMA (codedivision multiple access)," he said. Commenting on the ragingdebate over GSM versus CDMA in mobile services arena, Haddensaid: "GSM is the worlds most successful mobile standard withover 1 billion users, and is an open mobile standard. It alsosupports automatic international roaming, which is a majorcontributor to business plans."India’s GSM mobile firms’ revenue up 30 pctIndia’s private telecoms firms offering GSM-based mobile servicesreported a 24 percent rise in revenue in the year to March 2007but said future growth rates could slow because of heavy taxes onthe nascent industry. Although India’s mobile sector is the world’sfastest growing major wireless market, it is amongst the highesttaxed industries in the country. Mobile carriers pay as much as 25percent of their revenue as licence fee, spectrum charges and othertaxes. The Cellular Operators Association of India (COAI) saidrevenue for fiscal 2003/04 stood at 83.08 billion rupees ($1.86billion) compared with 64 billion rupees a year earlier. According toT.V. Ramachandran, director general at COAI, “These revenuegrowth rates cannot be maintained unless there is a concerted
effort by the government to cut excessive levies and allow sharingof infrastructure”“But the potential to do much better exists as there is still hugedemand in the sector.” Ramachandran said the sector was stilllosing money but declined to elaborate. Sales jumped because of adoubling of the GSM (Global System of Mobile Communications)user base as more people entered the flourishing market thanks toone of the lowest call rates in the world. But the monthly averagerevenue per user, a key measure of profitability, declined 17.4percent to 432 rupees in the fourth quarter compared with 523rupees in the first quarter due to a cut in tariffs and excessivecompetition among companies. Growth slowing, demanduntapped: The association has not included the financialperformance and the GSM-user base of state-run firms BharatSanchar Nigam Ltd, the second-ranked player, and MahanagarTelephone Nigam Ltd, Ramachandran said. There are 150 millionGSM customers and more than 96 million users of the rival CDMA-based mobile services in the country.The pace of growth in monthly additions is slowing after just 1.25million users took up the service in April compared with1.9 million in the previous month and 1.63 million in February.Ramachandran blamed the slowdown on a majority of small GSM
operators being unable to expand networks into rural swatheswhere demand remained largely untapped.“Our surpluses are not enough to cover costs of network expansionand financing charges on loans. We are making money only tocover operating expenses,” he said. Carriers are now subsidisinghandset costs to woo users into the underpenetrated industryforecast to have more than 250 million customers by 2007.Roughly three percent of Indians own a mobile phone comparedwith about 20 percent in China. About a dozen firms such asBharti Airtel Ltd, 28 percent owned by SingaporeTelecommunications, Reliance Infocomm Ltd and the Indian GSM-unit of Vodafone group battle in the hotly competitive sector.
DOES GSM HAVE THE EDGE?GSM operators are not the only ones who are worried about therapid strides made by CDMA mobile players Reliance Infocommand Tata Indicom in the Indian cellular market?The GSM suppliers – both handset and equipment - whoincidentally also have their other foot firmly placed in the CDMApie, are beginning to lose some sleep over what was earlier termedas `niche’ and `minuscule’ data carriage market by the operatorsApart from the strong success of the two CDMA operators whosenetworks are based on code division multiple access (CDMA), themiserable showing of the four global standard for mobile (GSM)based networks that launched general packet radio service (GPRS)
service for data connectivity in last three years, has the vendorsworried. Global mobile Suppliers Association (GSA) now believesthat even though India will primarily remain a voice traffic-ledmarket in next two-three years, the data traffic component willgrow by 25-30 per cent, an optimism that it’s trying to make GSMoperators feel as well.THE CDMA CHALLENGECDMA players had launched their services with CDMA 2000 1X-based networks, which can give hi-speed, always-on connectivity tothe Internet, and other data services. GSM operators, on the otherhand, have had to migrate from the frustrating experience of WAP(wireless application protocol) to GPRS, which has not significantly
improved the subscriber’s experience of surfing the Net on/frommobile.The top brass of GSA, an organisation comprising Nokia, Siemens,Ericsson, Alcatel and Lucent Technologies - met on Tuesday in thecapital to persuade the operators to adopt EDGE (Enhanced Datarates for GSM Evolution) and leave GPRS behind as a dream gonesour.Only Airtel, Vodafone, BPL Mobile and Idea Cellular had launchedGPRS, but the data transfer speeds of GPRS have been abysmal.The field trials gave a speed of around 54 kbps, but the actualspeeds have not exceeded 14-18 kbps, a major reason why GPRSgrowth has been so slow. As against the total GSM cellular base of5.61 crore, the country has between 2,80,000 lakh GPRS usersonly. In comparison, the two CDMA operators have about 120 lakhconnections. All these sets are data compliant. Though no figuresare available as to how many use these for data services, the figureis believed to be respectable as a percentage ratio for CDMA.Bharti is almost thereBut first, the EDGE! Bharti Cellular is close to commerciallylaunching its EDGE service in Delhi and Mumbai by end May orearly June, sources said. The company was the first to conductfield trials in November with its equipment supplier Ericsson. Ideatoo held EDGE field trials in February this year with its vendor
Nokia. Vodafone and BPL are yet to hold the trials. The twocompanies would eventually migrate to EDGE, but perhaps afterseeing the response to Bharti’s service.EDGE holds the promise of delivering data speeds of around170-180 kbps (as against the theoretical speed of around 380kbps) which, if achieved, promises the launch of many dataapplications. The scalable cost of migrating from GPRS to EDGE isnot too high and mainly comprises software upgrades in case of amodern network such as Bharti and Hutch, claimed chairman ofGSA India chapter Rakesh Malik.Will GSM maintain its headstart?At the GSM Evolution Forum held in New Delhi, GSA presidentAlan Hadden predicted that GSM growth will far outstrip CDMA aswas happening globally. He felt India could have as many as 200million GSM subscribers by 2007-2008, up from nine million inDecember 2004. According to GSA, there are over 1.1 billion GSMsubscribers worldwide as against 250 million CDMA customers.The revenue of top 25 global operators from data averages 18 percent and 22 of these operators run GSM networks. Overall, thereare 76 operators in 50 countries that have committed to deployEDGE.
Almost every country has a GSM-based network and even thoseUS operators, which operated on now-defunct TDMA technology,were migrating gradually to GSM, not CDMA, pointed out Haddenat the GSM Evolution Forum. The Forum is a global GSA programto assist the operators for evolution to third generation (3G)technologies. “People are using their phones for much more thanvoice. Fifteen networks have commercially launched EDGE as itcan run 3G like services in the existing spectrum for the operatorswithout needing a 3G license. Even the migration to a full-fledged3G level of Wideband CDMA (WCDMA) will be smooth with EDGE,”said Hadden.“Besides, the automatic roaming provided by GSM networks inalmost 200 countries is a power that CDMA doesn’t give you. Weknow for sure that almost 20-25 per cent of the revenue for someGSM operators comes from roaming customers,” he added. ButCDMA is no pushover with Korea and Philippines as the shiningjewels in its crown. The first CDMA 2000 1X was commerciallydeployed in October 2000.Already, 81 operators have launched 77 CDMA 2000 1X networkswhereas nine have launched services based on 1xEV-DO platformacross Asia, the Americas and Europe. At least, 16 new 1X and six1xEV-DO networks are scheduled to be deployed in 2004,
according to CDMA Development Group. EV-DO and EV-DV arethe next level of evolution on the CDMA 2000 1X platform, capableof delivering services comparable to 3G WCDMA.Where are the models?What will matter a lot in this war will be the availability of EDGEcompliant handsets at affordable rates. While the two CDMAoperators have been giving out handsets that can give hi-speeddata transfer, same has not been the case with GSM. Even now,GPRS handsets have not become commonplace and GPRS featureis found only in mid and high-end segment handsets.End sum gameWhen the networks deploy EDGE, subscribers can expect thedelivery of advanced mobile services such as easy downloading ofvideo and music clips, full multimedia messaging, besides high-speed Internet and e-mail access, provided their handset supportsall this.But the real cruncher will be the migration at a later stage to 3Gtechnologies such as WCDMA, EV-DO or EV-DA as and when thegovernment decides what to do with the 3G licences. WCDMA forexample promises delivery of a phenomenal 2 megabytes per
second (mbps), equivalent to what a leased line in many middlelevel corporates gives.More importantly, WCDMA will spawn a whole new range of fullmotion audio-video applications, including video telephony. GSMlobby may continue to remain gung ho over the future of theirtechnologies over that boosted by the American firms Qualcommand Motorola, but Indian market could well throw an interestingscenario that industry experts will do well to watch. In the comingmonths, Reliance plans to offer its CDMA subscribers much morethan what GSM players intend to deliver through their EDGE fortheir subscribers.Who succeeds in this battle for mobile customer’s eyeballs is mostdifficult to predict. A Korea and Japan may not be waiting tohappen in India, but India will probably be more like the Chinesemarket with both standards co-existing. For now, GSM rules!
INTRODUCTIONAirtel (Bharti Airtel Ltd.)Bharti Airtel Limited was incorporated on July 7, 1995 forpromoting investments in telecommunications services. Itssubsidiaries operate telecom services across India. Bharti Airtel isIndias leading private sector provider of telecommunicationsservices based on a strong customer base consisting of 50 milliontotal customers, which constitute, 44.6 million mobile and 5.4million fixed line customers, as of March 31, 2007.Airtel comes to us from Bharti Airtel Limited - a part of the biggestprivate integrated telecom conglomerate, Bharti Enterprises. Bhartiprovides a range of telecom services, which include Cellular, Basic,
Internet and recently introduced National Long Distance. Bhartialso manufactures and exports telephone terminals and cordlessphones. Apart from being the largest manufacturer of telephoneinstruments in India, it is also the first company to export itsproducts to the USA. Bharti has also put its footsteps intoInsurance and Retail segment in collaboration with Multi- Nationalgiants. Bharti is the leading cellular service provider, with afootprint in 23 states covering all four metros and more than 50million satisfied customers.SERVICESAirtel PrepaidAirtel Prepaid, the Ready Cellular Card from Airtel comes to youfrom Bharti Enterprises, Indias leading integrated telecom serviceprovider. Going mobile with Airtel Prepaid is a new way of life. Witha host of great features, also simple to use, Airtel Prepaid makeseverything that you dreamt and believed, possible.Total Cost ControlYou can control your Airtel Prepaid like never before. No morerentals or deposits – simply recharge as much as you need to fromas low as Rs. 10, to as high as Rs. 10,000/-.
Pre activated STD/ISD without deposits or rentalsYou can now enjoy a pre-activated STD/ISD on your Airtel Prepaid.No more paying deposits or having a minimum balance in youraccount to make an STD/ISD call. Hassle-free calls are here tostay!Strong Network CoverageEnjoy complete clarity when calling with Airtel’s world-classtechnology and unbreakable network coverage that spans over 23circles across the country.Instant Balance and Validity EnquiryYour account balance is updated on the screen of your handset atthe end of each chargeable call. You can also call 123 from yourmobile phone and listen to the voice announcement or simply dial*123#, press OK or YES button and your account balance will bedisplayed on the screen of your handset.Recharge your Airtel PrepaidRecharging is Easy. The calling value on your card keeps reducingas you make calls or use any other chargeable service. Choose theAirtel Prepaid Recharge Coupon that’s right for you, from a varietyof tailor– made recharge coupons with different denominations,
which are available at a number of outlets across your city. Simplyfollow the procedure mentioned below, to recharge your phone.Prepaid RoamingAirtel Prepaid comes preactivated with National Roaming, so youstay connected no matter wherever you are. You can also send orreceive MMS, check your email and access other GPRS serviceswhile roaming in India as you would in your own city. Whiletraveling abroad you can receive calls & send or receive SMS.Other ServicesAirtel brings you, a wide range of Services that will change the wayyou communicate. Try them and discover a whole new world of funand excitement.Call management ServicesCall waiting, call hold, call divert and Caller Line IdentificationPresentation – all with your Airtel prepaid connection.Voice MailWhen your handset is switched off, or you’re too busy to answerthe phone, Airtel Voicemail will answer your calls and record amessage. The best part is that theres no extra monthly cost for
setting up Voicemail - you just pay for the phone call when youuse the service.SMS (Short Messaging Service)Send messages quickly and easily using text, if its too noisy to talkor you dont have much time. Its the way to share thoseinteresting one-liners, important reminders and rib-tickling jokes,with anyone, anytime, anywhere in the world.Subscription AlertsGet regular alerts on news, jokes, business, health and films onyour Airtel mobile phone with Subscription Services. SMS <SUBNEWS> to 3333 for News, <SUB JOKE> for Jokes, <SUB BIZ> forBusiness News, <SUB SPO> for Sports Alerts & <SUB VAASTU> forVaastu tips.MMS (Multi-media Messaging Service):Jazz up your messages with pictures, images and video clippings,with MMS from Airtel! To activate MMS on your phone, SMS MMSto 56465 and save service settings.Airtel Live!Make your mobile the most happening entertainment destinationwith Airtel Live! Airtel brings you the latest in entertainment andinformation services, right on your phone!
Airtel Live! WAP Services: Download the latest ring tones, games,wallpapers, videos and much more. You can also get news clips,watch live TV and download full songs on you phone. To get AirtelLive! settings on your phone, SMS Live to 56465 and save thesettings that you receive as your preferred connection. Airtel Live!Portal can be accessed from you GPRS enabled phone, by sendinga SMS FUN to 56465.Airtel Live! Voice Services: Just Dial 56465, and name theservice. For e.g. say ring tones to download your favorite ringtones. You can also choose a variety of content options like LiveCricket Commentary, latest National / International News, MovieReviews or Stock Market Updates.Airtel Live! SIM Services: Access loads of fun content andexciting services like cricket, stocks, on your phone at the touch ofa few buttons with Airtel Live! SIM based Services on your SIMcard menu. To download new services on your Airtel SIM, choosethe "Whats new" option under the "Airtel services" menu.Airtel Live! SMS Services: You can enjoy a host of services bysending a keyword as an SMS to 56465! Choose Astrology /Horoscope, Cricket, Bollywood / Hollywood / Indi Pop Ring tones.In case you need assistance SMS, Help to 56465.
Hello TunesTired of that boring old ‘tring tring’ on your phone? Well now whena friend calls, you can make them groove to the hottest new tracksburning up the music charts with Hello Tunes from Airtel! You geta wide choice of songs in the Popular & New Arrivals categoriesthat are updated regularly. Whats more you can directly call thenumber for your kind of music, e.g. call 678005 for English Newand 678001 for Hindi New. This would directly take you to yourfavorite artists Hello Tunes listing.Copy a Hello TuneGet the tune you want, all you have to do is call 55055 and followthe simple voice instructions to copy your favorite Hello Tunes.Once inside the copy feature, just key in the 10-digit Airtel mobilenumber you want to copy the Hello Tune from and you get thesame Hello Tune assigned to your number.Gift a Hello TuneForget gifting chocolates, flowers and greeting cards. Say it with asong instead! Gift a Hello Tune to that special someone. Just call55055 and choose the song that you want to gift. Follow the simplevoice instructions and key in the 10-digit Airtel mobile numberthat you want to gift the Hello Tune to. You will get an SMSnotification upon successful receipt of that gift.
Buy Music - Airtel Music ShopsBuying your favorite Hello Tune or Ring tone is as simple asrecharging your phone with talk time. Simply walk into yournearest Airtel Shop and walk out with your favorite song. Choosefrom Bollywood Hits to Indipop Remixes, Hard Rock to GujratiGarba, Bhajans to Jazz, Bhangra Beats to foot tapping Tamil Hitsfrom a list of more than 18000 songs.Reach us Anytime AnywhereIn case you need assistance, dial 121 - our toll-free number,accessible from anywhere in the country, even while roaming. Youcan also send us an SMS to 121 or mail us email@example.com.*In case of email, mention your mobile no. like, 9810012345, inthe subject of the mail for a quicker response.Airtel PostpaidAirtel welcomes you to a vibrant world of unlimited opportunities.More exciting, innovative yet simple new ways to communicate,just when you want to, not just through words but ideas, emotionsand feelings. To give you the unlimited freedom to reach out toyour special people in your special way.
Easy BillingEnjoy a host of rich features only with Airtel e-bill. Register free on‘My Airtel’ section and view your monthly bill with call details forlast three months. Sort your calls between personal and official oranalyze your usage, at the click of a button. To change your tariffplan call our IVR at 121 and leave a request.Easy Payment Options. Anytime AnywhereYou can choose from a host of convenient payment options onlywith Airtel. Walk into any Airtel relationship centre and make yourpayments by cash or credit card. Drop a cheque at any of the dropboxes for making payments or simply log on to My Airtel sectionand pay instantly through your credit card. You can also opt foreasy payment options like:Standing InstructionsYou can give us standing instructions to debit your credit cardaccount for your monthly Airtel bills. All you have to do is fill theStanding Instruction Form and mail, fax it to us or drop it any ofour relationship centres.
Electronic Clearing SystemFill an ECS form and mail, fax it to us or drop it any of ourrelationship centres to directly debit your bank account for yourmonthly Airtel bill.Pay while roamingAirtel has introduced Anywhere payment that offers you theconvenience of making payments while you roam. Walk in to anyAirtel Relationship Centre in the country, make payments by cashor credit card and enjoy uninterrupted Airtel Services.Credit limitYour pre-set credit limit mentioned on your monthly bill helps youkeep your mobile charges in control, keeps track of your usage andensures that your mobile phone is not misused. Should you exceedyour credit limit, you will be informed via a voice or a non-voicemessage to make an interim payment and reduce your accountbalance below your credit limit. You may also choose to pay us anadditional refundable deposit to enhance your credit limit or optfor our convenient payment method of Credit Card Standinginstruction .You can also make use of ECS facility.
Strong Network CoverageEnjoy complete clarity when calling with Airtel .It offers you worldclass technology and unbreakable network coverage that spansover 23 circles across the country.Long Distance Calling FacilityCall long distance calls in India and Overseas with STD / ISDfacility on your Airtel phone.Widest Roaming - National and InternationalAirtels roaming service allows you to stay connected and use yourmobile phone to make or receive calls from almost anywhere inIndia and also over 160 countries, abroad.GPRS - RoamingUse Airtel Postpaids GPRS services, while roaming, to access theinternet and office mails (eg. BlackBerry services), from almostanywhere in India and abroad.Say it. In more than just words, with Services from AirtelAirtel brings you a wide range of Services that will change the wayyou communicate. Try them and discover a whole new world of funand excitement.
Call management ServicesCall waiting, call hold, call divert and Caller Line IdentificationPresentation, help you do more with your Airtel Postpaidconnection!Conference callYou can hold a teleconference with 5 people simultaneously withCall Conferencing service from Airtel. In fact, you can set up aconference even when the other five are using a landline phone. Toknow more, call customer service at 121.Missed call alertA missed call alert is a SMS that you will receive for all the callsthat you missed. The SMS will detail the CLI and the time whenthe call was made. To activate, dial *135*2# then press the callbutton and wait for the request to be completed.Voice MailWhen your handset is switched off, or you’re too busy to answerthe phone, Airtel Voicemail will answer your calls and record amessage. The best part is that theres no extra monthly cost forsetting up Voicemail - you just pay for the phone call when youuse the service.
SMS (Short Messaging Service)Send messages quickly and easily, using text, if its too noisy totalk or you dont have much time. Its the way to Share thoseinteresting one-liners, important reminders and rib-tickling jokes,with anyone, anytime, anywhere in the world.Subscription AlertsGet regular alerts on news, jokes, business, health and films onyour Airtel mobile phone with Subscription Services. SMS <SUBNEWS> for News, <SUB JOKE> for Jokes, <SUB BIZ> for BusinessNews, <SUB SPO> for Sports Alerts & <SUB VAASTU> for Vaastutips to 3333.MMS (Multi-media Messaging Service):Jazz up your messages with pictures, images and video clippings,with MMS from Airtel! To activate MMS on your phone, SMS MMSto 56465 and save service settings.Airtel Live!Make your mobile the most happening entertainment destinationwith Airtel Live! Airtel brings you the latest in entertainment andinformation services, right on your phone!
Airtel Live! WAP Services: Download the latest ringtones, games,wallpapers, videos and much more. You can also get news clips,watch live TV and download full songs on you phone! To get AirtelLive! settings on your phone SMS Live to 56465 and save thesettings that you receive as your preferred connection. Airtel Live!Portal can be accessed from you GPRS enabled phone, by sendinga SMS FUN to 56465.Airtel Live! Voice Services: Just Dial 56465 and say the name ofthe service. For e.g. say ‘Ring tones’ to download your favouritering tones. You can also choose a variety of content options likeLive Cricket Commentary, latest National / International News,Movie Reviews or Stock Market Updates.Airtel Live! SIM Services: Access loads of fun content andexciting services like cricket, stocks, on your phone at the touch ofa few buttons with Airtel Live! SIM based Services on your SIMcard menu. To download new services on your Airtel SIM, choosethe "Whats new" option under the "Airtel services" menu.Airtel Live! SMS Services: You can enjoy a host of services bysending a keyword as an SMS to 56465 ! Choose Astrology /Horoscope, Cricket, Bollywood / Hollywood / Indi Pop Ring tones.In case you need assistance SMS ‘Help’ to 56465.
GPRS (General Packet Radio Services)Log on to the internet, with GPRS that allows data transmission ata higher speed. Access e-mails and internet across Airtels pan-India presence using Mobile Office with your phone or a phoneand laptop both.Get the EDGEBrowse the internet on your mobile phone with Airtels EDGEservices. Enjoy live TV, enhanced WAP experience and Airtel DataCards on our high speed network.Hello TunesTired of that boring old ‘tring tring’ on your phone? Well now whena friend calls, you can make them groove to the hottest new tracksburning up the music charts with Hello Tunes from Airtel! You geta wide choice of songs in the Popular & New Arrivals categoriesthat are updated regularly. Whats more, you can directly call thenumber for your kind of music, e.g. call 678005 for ‘English New’and 678001 for ‘Hindi New’. This would directly take you to yourfavourite artists Hello Tunes listing.
Copy a Hello TunesLike a tune you want, all you have to do is call 55055 and followthe simple voice instructions to copy your favourite Hello Tunes.Once inside the copy feature, just key in the 10-digit Airtel mobilenumber you want to copy the Hello Tune from and you get thesame Hello Tune assigned to your number.Gift a Hello TunesForget gifting chocolates, flowers and greeting cards. Say it with asong instead! Gift a Hello Tune to that special someone. Just call55055 and choose the song that you want to gift. Follow the simplevoice instructions and key in the 10-digit Airtel mobile numberthat you want to gift the Hello Tune to. You will get an SMSnotification upon successful receipt of that gift.Buy Music - Airtel Music ShopsBuying your favourite Hello Tune or Ringtone is as simple asrecharging your phone with talktime. Simply walk into yournearest Airtel Shop and walk out with your favourite song. Choosefrom Bollywood Hits to Indipop Remixes, Hard Rock to GujratiGarba, Bhajans to Jazz, Bhangra Beats to foot tapping Tamil Hitsfrom a list of more than 18000 songs.
Reach us, Anytime AnywhereIn case you need assistance, dial 121 - our toll-free number, accessiblefrom anywhere in the country, even while roaming. *In case of email,mention your mobile no. like 9810012345 in the subject of the mail for aquicker response. TARIFF STRUCTUREPrepaid TariffsAirtel Prepaid Ready Cellular Card and Recharge Cards areavailable, all over the city at over retail outlets including 24-houroutlets. Airtel Prepaid Ready Cellular Card and Recharge Cards areavailable, all over the city at over retail outlets including 24-houroutlets.
Pulse Rate60 secPrice of Pack (Rs.)Rs.449Free Airtime on Pack (Rs.)NilIncoming Calls (Rs.)Free while in home networkAirtelGSM / CDMA(10 Digit)Landline / WLLLOCAL RATES (Rs./min)Rs.1.20Rs.2.00Rs.2.40STD RATES (Rs./min)Rs.2.75Rs.2.75Rs.2.75ISD (Rs./min)USA, Canada, Europe (FixedLine), Australia, Singapore, HongKong, Thailand, Malaysia,Indonesia, New Zealand.Rs.6.40Gulf, Europe (Mobile), SAARCcountries, Africa & Rest of theworldRs.9.20Cuba, Sao Tome & Principe,Guinea Bissau, Diego Garcia,Nauru, Solomon Islands,Vanuatu, Cook Islands, Tuvalu,Tokelau, Norfolk Island,SakhalinRs.40.00
Other Details *Rs 50 Local Airtel-Airtel Mobile talktime per month for 6 months * First month Airtel-Airtel credit within 72hrs of activation & balance credit by 1st week of every *The SMS charge as applicable is per 160 characters * Validity- 24 months.POSTPAIDAirtel Postpaid allows you to choose from a variety of affordabletalk plans, convenient payment options and host of rich features.So get set to enjoy a world of limitless possibilities!Reference Tarif Packages (RTP)ON TIME CHARGESActivation Charges Rs. 250Membership Fee Rs. 250Security Deposit NAMONTHLY CHARGES (FIXED) Rs. 524Bill plan Charge Rs. 444Monthly Rental Rs. 150Clip NAMONTHLY CHARGES (OPTIONAL)Clip Rs. 99 Airtel GSM / Landline / CDMA (10 WLL Digit)Local Rates Rs. 1.99 Rs 1.99 Rs 1.99STD RATES50 – 200 Km200 – 500 Km500 + KmISDUSA, Canda, Europe (Fixed Line), Rs. 7.20Austalia, Singapore, Hong Kong,Thailand, Malaysia, Indonesia, newZealandGulf, Europe (Mobile), SAARC Rs 9.99
Countries, Africa & Rest of theworldCuba, Sao tome & Principle, Rs. 40.00Guinea Bissau, Diego Garcia,Nauru, Solomon Islands, Vanuatu,Cook Island, Tuvalu, Tokelau,Norfolk Island, SakhalinSMSLocal Rs. 1.00National Rs. 2.00International Rs. 5.00Value Added Services (Rs.) Rs. 3.00Airtel One Standard 150ONE TIME CHARGESActivation Charges Rs 250Membership Fee Rs 250 (Converts into security after 24 months)Security Deposit NAMONTHLY CHARGES (FIXED) Rs. 150Bill Plan Charge Rs. 50Monthly Rental Rs. 150Clip NAMONTHLY CHARGES (OPTIONAL)Clip Rs. 50Bissau, Diego Garcia, Nauru,Solomon Islands, Vanuatu, CookIslands, Tuvalu, Tokelau, NorfolkIsland, SakhalinSMSLocal Rs 1.00National Rs 2.00Intentional Rs. 5.00VAS Rs. 3.00 This Bill Plan is also available under Advance Rental of Rs. 799 for 2 years.
Local PackAirtel to other local mobiles (non Airtel) At Rs 1 / min Monthly rental Rs 25 per months/- STD PackAirtel to other mobiles (non Airtel) & fixed lines nos. at Rs 2 / min. Monthly rental Rs 75 per month/- Special offer for Airtel Telephone service customers for availing Airtel Mobile services If you already have Airtel Telephone service, you can buy a new Airtel Mobile connection under Airtel One Standard 150 Plan.Benefits: Non security deposit. No membership / activation fee Enjoy calls to your Airtel fixed line no. at just 50 P / min. Monthly rent of Rs 25 for reduced call rates to your Airtel fixed line has been waived off for 1 year.For details, call us 516-12345Advance Rental benefits (1year scheme)Pay an advance rent of Rs 499 and enjoy Airtel One Standard 150plan at Zero monthly rental for one year.
Advance rental of Rs 499 gives you a rental discount of Rs 150every month for the next 2 months. All other options and chargesare as per the existing Airtel One Standard 150 Plan.Airtel one Standard 299ONE TIME CHARGESActivation Charges Rs 250Membership Fee Rs 250 (Converts into security after 24 months)Security Deposit NAMONTHLY CHARGES (FIXED) Rs 299Bill Plan Charge Rs. 150Monthly Rental Rs. 299Clip NAMONTHLY CHARGES (OPTIONAL)Clip Rs. 50 Airtel GSM / Landline / CDMA (10 WLL Digit)LOCAL RATES Re. 1.00 Rs. 1.00 Rs. 1.00STD RATES50-200Km Rs. 2.00 Rs. 2.40 Rs. 2.40200 – 500 Km Rs. 2.00 Rs. 2.40 Rs. 2.40500 + Km Rs. 2.00 Rs. 2.40 Rs. 2.40ISDUSA, Canda, Europe (Fixed Line), Rs. 7.20Austalia, Singapore, Hong Kong,Thailand, Malaysia, Indonesia, newZealandGulf, Europe (Mobile), SAARC Rs 9.99Countries, Africa & Rest of theworld
Cuba, Sao tome & Principle, Rs. 40.00Guinea Bissau, Diego Garcia,Nauru, Solomon Islands, Vanuatu,Cook Island, Tuvalu, Tokelau,Norfolk Island, SakhalinSMSLocal Rs. 1.00National Rs. 2.00International Rs. 5.00Value Added Services (Rs.) Rs. 3.00You also enjoy 25 FREE local mobile to mobile SMS
Senior Citizen PlanONE TIME CHARGESActivation Charges Rs. 250Membership Fee Rs. 250 (Concerts into security deposit after 24 months)Security Deposit NAMONTHLY CHARGES (FIXED) Rs. 150Bill Plan Charge Rs. 51 Monthly Rental Rs. 99Clip NACuba, Sao Tome & Principle,Guinea Bissau, Diego Garcia,Nauru, Solomon Islands, Vanuatu,Cook Islands, Tuvalu, Tokelau,Norfolk Island, SakhalinSMSLocal Rs. 1.50National Rs. 2.00International Rs. 5.00VAS Rs. 3.00With Senior Citizen Plan
You can take 3 Friends and Family numbers: Airtel to Airtel (1local no.) – Rs. 0.5 / min. Airtel to Airtel (1 STD no.) – Rs 1.5 / min ISD calls to US / Canada / South East Asia / Australia / New Zealand) – Rs. 9.99 / minYou also get FREE alert subscription worth Rs 30 / alert or 3months on: News Astrology Health TipsThe SMS charges as applicable is per 160 Characters.
PROMOTIONAL STRATEGYAirtel to “Touch Tomorrow” with a new brand visionThe Bharti Mobile promoted AirTel cellular service will go in forrepositioning of its brand image. The new brand ethos is portrayedin two distinct fashions - the tag line "Touch Tomorrow", whichunderscores the leading theme for the new brand vision, followedby "The Good Life", which underscores a more caring, morecustomer centric organization. Aimed at re-engineering its imageas just simply a cellular service provider to an all out informationcommunications services provider, Touch Tomorrow is meant toembrace the new generation of mobile communication services andthe changing scope of customer needs and aspirations that comealong with itThe new communication is about a new dimension in the cellularcategory that goes beyond the Internet, SMS, roaming, IVRS, etcbut which engulfs the whole gamut of wireless digital broadbandservices that will constitute tomorrows cellular services. The newcampaign is in two phases - the first of which will communicateoverall brand philosophy and the second products and services.According to Mr. Jagdish Kini, Chief Operating Officer, BhartiMobile Limited, Karnataka "We are adopting a new brand- platform
- Touch Tomorrow - not only to reflect our corporate ethos but alsobusiness strategy".The new identity will have the logo in Red, Black and White coloursalong with lower case typography to convey warmth. AirTel willincorporate the latest branding in all of its communication and willsoon be going in for an enhanced promotional drive to establishthe brands presence.LIFE TIME PLANPRE-PAID card users need not worry anymore about rechargingtheir coupons every month. Company has launched a plan thatallows users to take a pre-paid connection with lifetime validity fora one time payment of Rs. 999. Subscribers availing themselves ofthis scheme will also get full talk time for the recharge coupon theypurchase and also have the option to buy Taiwanese manufacturedBird mobile handsets for as low as Rs. 1,399.The move is aimed at stopping the churn in the pre-paidsubscriber base. Once a subscriber takes this plan, he will alwaysbe an Airtel subscriber whether the mobile is being used or not.
MARKET SITUATIONAt the time of launchThe first mover in the market was Airtel which launched itsservices in Delhi in Aug 1995 (Informal launch). Essar Cellphonefollowed by launching its services informally in Oct 95. At thispoint of time, the market was at a nascent stage, awareness levelwas low and both operators independently tried to spreadawareness and educate the peopleOnce the networks were commercially launched, it became anumber game with a multitude of schemes being offered to woocustomers Initially the cellphone was perceived as a status symboland utility took a back seat The target segment in Delhi werecorporate and the high income group. The average capacityinstalled was for 1.5 lakh subscribers. This coupled with the steeplicense fee paid to DOT put pressure on the operators to break-even by rapidly expanding their markets. In the first two years,this led to a number of schemes being offered and prices crashing.
COMPETITIVE SITUATIONAirtel launched its services before Essar and skimmed the marketpicking up the bulk of the high usage premium clients. This is avery competitive industry with the two companies differentiatingeither on value-added services or price. Airtel is perceived as thehigh quality provider and has a premium image. Essar, on theother hand, is perceived as the lower end service provider. Airtelpositions itself as the market leader on the basis of the number ofsubscribers. Essar is trying to counter this by emphasising on thereach of its network and the quality of its service. However, Essaris somewhat not been very successful largely due to theinconsistency in advertisingTo promote themselves, both the players have been dependent ontactical advertising However, they have restrained from usingcomparative advertising Hoardings have been a very popularmedium for carrying the advertisements Airtel has also beenadvertising on television using the Bharti Telecom name.SALES DEPARTMENT AND STRATEGYA. Major Accounts (Direct Channel) • Handles corporate (named and famed) accounts • Forecasting of sales • Mapping the accounts • Providing after sales support to the subscribers.
• Maintaining call reports for records. • Providing Feedback to the marketing department regarding the requirement of the market.B. IDC (indirect Channel) • Handling distribution • Maintaining records and level check of the channel partner • Liaisoning between the channel partner and the company. • Target achievement • Training the executives of the channelC. Distribution Support 1. Logistics • Monitor handset and SIM card requirements of channel partners and co-ordinate with stores • Settle areas of concerns such as incentive claims of channel partners2. Rental • Provide cellular services (SIM cards) on rent. • Provide cellular phones on rent • Useful for people visiting Delhi for a short interval.3 Telesales • Call customers and generate sales lead. • Follow up with the customers, if they need any assistance
• Pass on the sales lead to the channel department.4 Audit • Consultant to the AirTel showrooms. • Monitor the operations at the AirTel distribution outlets Organize training.5. Retail • Locate shops to open retail counters. • Monitor the retail counters.MARKET SEGMENTATIONSegmentation is beneficial because of better predictability of thetarget consumer group, minimization of risk exposure, betterability to fine-tune a product / service to the requirement of targetbuyer and the resultant ease in designing a proper designingmarketing mix strategy In this case segmentation is on the bade ofincome.In evaluating different market segments the company looks at twofactors The overall attractiveness of the segments and thecompanys objectives & resources The present market for Cellularphones, pagers and conventional phones is as follows Premium Middle Economy Upper Lower Upper Lower Upper LowerCellular Phones X X X - - -Pager X X X X - -Conventional X X X X X -Phones
X Market Segment TargetedTARGET MARKET SEGMENTAirtel has targeted the premium and upper middle class. Therationale behind it is that only those segments should be targetedwho value time and have the paying capacity. It Is also planningto target the business tourists during their stay in the capitalAbout 60% of the clientele are top executives of corporate houses.About 15% are foreign organisations and the rest are professionalsand small businessmen. During the introduction stage there wasintense pressure to get consumers across to hook up with theirbrand, because getting them to switch brand loyalty later would behardSo far Airtel marketers have been concentrating totally on thebusiness executive class but now that the basic viable volumes hasbeer) built up and prices have declined to a certain extent they areplanning to venture further a field.POSITIONINGThe product is sought to be positioned as a business efficiencytool. a lifestyle revolution and a status symbol The emphasis is toremove misconception that the cellphone is an expensive means of
communication and drive home the point that the cellphone isactually a day-to-day utilityPRODUCT POLICY AND PLANNINGThe product or service is the heart of the marketing mix. Withouta product or a service customers needs cannot be satisfied.The basic product promise by Airtel is mobility. Airtels mainmarketing strategy is to be a first mover all the time. It hasrecognised the significance of making the first move-- because inthe field of Communication & Information Technology changesoccur at a tremendous pace.Effective product segmentation has to be carried on continuouslybecause basic services can be and will be copied and in timebecome expected component of the product. Airtel seeks to carryout this segmentation through provision of new informationservices and making new facilities available. The product policyand planning depends on the stage of the product life cycle. Atpresent the cellular phone market has reached the maturity stage.Since, the premium segment is nearing saturation the companytargeting the upper middle and middle-middle class. In order to doso Airtel is trying to optimise the price performance package byoffering suitable "product bundling".
This involves the selection of the suitable hardware (handset) andits software (its services.) with reasonable price in order to delivermaximum price performance to its customers. In addition, it offersfree Airtime services and other concessions to make the prices andthus the product more attractive. It has also opened a 24 hourscustomer service.Only price doesnt serve as an effective differentiator, value addedservices become the effective differentiator.The "Value Added Services" provided from Airtel are:-1). Voice Mail serviceThis system is similar to the answering machine - if the user is notable to answer a call for some reason the caller can leave messagesin the voice mail box which can be later retrieved by the userii) Short Message ServiceThe short message service is like a two-way pager. It gives anoption of sending and receiving text messages directly from onemobile phone to another without the intervention of an operator.iii) Mobile Fax 1 Data ServiceThis service helps the subscriber to send and receive Faxes, accessE-mail, download computer files from other systems and remotelylog on to another computer and surf the Internet.
iv) Cash CardThe cash card is a pre-paid and pre-activated card which allowsthe buyers to buy air time in advance. All it requires is thepayment of an initial amount. This is a useful service for peoplewho travel to Delhi often and those who want to control theexpenses on their calls.v) Caller IDDisplays calling persons number.vi) Outgoing call restrictionTo prevent or limit outgoing calls, for example, in peak hours. Alsopossible to exclude one or several countries, or any geographicalregion, to permit only local calls, or to limit the outgoing calls to alisted number.viii) Call forwardIncoming calls can be forwarded to another fixed or mobile phone.Besides these some other services provided by Airtel are - Callconferencing, Call Broadcast et cetera.It is in the operators -Interest that they not only get manysubscribers but also get them to use the mobile facility frequently.In the early stages getting increases to subscribe may be easierthan getting them to talk since they will find it costlier to use the
mobile phone as compared to a conventional phone [if is believedthat initially cellphones would be used buy]viii) Roaming FacilityRoaming facility is available while the subscriber is travelling. Thebilling is done in the home network (Delhi). Roaming facility isavailable manually* as well as semi-automatically. Once asubscriber is In any other city or country, where a GSM network isavailable, simply insert the SIM card of the local operator Into yourhandset and start talking.* Manual Roaming means a separate SIM card is provided for each city** Semi automatic roaming means one card has the facility for different cities.AIRTELS MARKETING ORIENTATION.Since this is a high-involvement expensive product, the serviceprovider has to fully take care of the customers.a) They take personal responsibility to "get" the answer for any problem faced by the customerb) They anticipate customers problems and take pro-active steps to prevent themc) They give answers to the questions & requests, quickly & efficiently.
d) They have a positive tone & manner while interacting with customers.e) They end the interaction on a positive or a humorous note- making the last 30 seconds count.Airtel realises that attracting people Is easy but converting theminto loyal customers is hard, hence emphasis is on maintaining aSmiling and a Friendly Atmosphere to please and retain thecustomer.PRICE AND PRICING POLICYAIRTEL has realised that the Indian market is price sensitive.Therefore it care of the has come up with various innovative tariffschemes to take needs of different category of customers-Generally, the cellular services are more expensive than the landline based telephone services. This is due to the reason that theoperating companies are required to pay a fee to the governmentfor using airtime.
MARKETING STRATEGY ADOPTED BY BHARTIBharti has spent a considerable amount on advertising its mobilephone service, Airtel. Besides print advertising, the company hadput up large no of hoardings and kiosks in and around Delhi.The objective behind designing a promotion campaign for the‘Airtel’ services is to promote the brand awareness and to buildbrand preferences.It is trying to set up a thematic campaign to build a stronger brandequity for Airtel. Since the cellular phone category itself is toorestricted, also the fact that a Cellular phone is a high involvementproduct, price doesnt qualify as an effective differentiator. Theimage of the service provider counts a great deal. Given the Cellphone category, it is the network efficiency and the quality ofservice that becomes important. What now the buyer is looking atis to get the optimum price-performance package. This also servesas an effective differentiatorBrand awareness is spread through the campaigns and brandpreference through brand stature. Airtels campaign in the capitalbegan with a series of teaser hoardings across the city, bearingjust the companys name and without explaining what Airtel was.In the next phase the campaign associated Airtel with Cellular onlythereafter 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 50,000direct callers were sent out. When the name was well entrenchedin the Delhiites’s mind, the Airtel campaign began to focus on theutility of Cellphone. In the first four months alone Airteisadvertisement spend exceeded Rs. 4 crores.As of today the awareness level Is 60% unaided. This implies thatif potential or knowledgeable consumers are asked to name aCellular phone service provider that is on the top of his/her mind60% of them would name Airtel. As for aided it -is 100% (by givingclues and hints etc.).Brand strength of a product or the health of a brand is measuredby the percentage score of the brand on the above aided and theunaided tests. The figures show that Airtel is a healthy and athriving brand.Every company has a goal, which might comprise a sales targetand a game plan with due regard to Its competitor. Airtel scampaign strategy is designed keeping in mind its marketingstrategy. The tone, tenor and the stance of the visual ads aredesigned to convey the image of a market leader in terms of itsmarket share. It tries to portray the image of being a "first moverevery time" and that of a "market leader".
The status of the product in terms of its life cycle has just reachedthe maturity stage in India. It is still on the rising part of theproduct life cycle curve in the maturity stage.The diagram on the left hand side shows the percentage of theusers classified into heavy, medium and low categories. The righthand side shows the revenue share earned from the three types ofusers.Airtel, keeping in mind the importance of the customer retention,values its heavy users the most and constantly indulges in serviceinnovation. But, since heavy users comprise only 15 - 20% of thepopulation the other segment cannot be neglected.The population which has just realised the importance of cellularphones has to be roped in. It is for this reason that the serviceprovider offers a plethora of incentives and discounts. Concertslike the "Freedom concert" are being organised by Airtel in order topromote sales. The media channel is chosen with economy inmind. The target segment is not very concrete but, there is anattempt to focus on those who can afford. The printadvertisements and hoarding are placed in those strategic areaswhich most likely to catch the attention of those who need acellular phone. The product promise (which might cost different 1higher) is an important variable in determining the targetaudience.
Besides this, other promotional strategies that Airtel has adoptedare .(i) People who have booked Airtel services have been treated to exclusive premiers of blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent fliers programs.(ii) There have been educational campaigns, image campaigns, pre launch advertisements, launch advertisements, congratulatory advertisements, promotional advertise-ments, attacking advertisements and tactical advertisements.
DISTRIBUTION Company Franchisee Distributor Dealers Dealer Customer CustomerThe- company whose operations are concentrated in and aroundDelhi. It 27 Franchisees and 15 Distributors- They also have 8instant access cash card counters- Each franchises or distributorcan have any number of dealers under him as long as the personis approved by the Airtel authority. Each franchises has to investRupees Ten Lakhs. to obtain a franchise and should employ anofficer recruited by Airtel. This person acts as an liaison betweenthe company and the franchises. The franchises can it anynumber of dealers as long as their territories do not overlap. Butunfortunately Airtel has not been very successful in controllingterritorial overlaps of dealers. The franchises can carry out his 1her own promotional strategy. For this the. company contributes
75% of the money and the franchises contributes 25% of themoney. The dealers under the franchisee receive the samecommission. The franchises and the dealer obtain the feedbackfrom the customers and they are sent through the liaison officer ona day-to-day basis to Airtel. The dealer has to invest Rupees. OneLakh as an initial investment. The dealer of Airtel are not allowedto provide any other operators service.Target set for distributors and the dealers is 100 -150 activationsper month. Hence the dealers can also go for their ownpromotions like banners and discounts on festivals etc. The dealerprovides service promptly. The consumer on providing the bill ofpurchase for the handset and proof of residence has only to waitan hour before getting connected. The staff of the dealers and thefranchisees are provided training by the Airtel personnel.The complaints encountered by the franchisees and dealers areeither handset being non-functional or the SIM Card not gettingactivated. Anything more complicated is referred to the main Airteloffice in Delhi.
WHAT DOES AIRTEL OFFER?With Airtel, the subscriber wouldnt just get a personal phone thatlets him/her be in touch, always, but also gets a host of benefitsthat let him/her manage his/her time like never before.An Airtel subscriber is provided with a Subscriber Identity ModuleCard (SIM card) - that is the key to operating his/her cellularphone. His card activates Airtel cellular services and contains acomplete micro-computer chip with memory to enable one to enjoyones cellular phone thoroughly. Each SIM card contains a PINcode (Personal Identity Number) which may be entered by one.Just plug your SIM card into your cellular phone, enter the PINcode and it becomes your personal phone.PRODUCT LIFE CYCLEThe pattern of cellphone subscriber growth observed elsewhere inthe world reveals that the growth in the market is Initially slowfollowed by a sharp acceleration, but so far that has not happenedin India. As far as the Product Life Cycle is concerned. Indiansare at the beginning of the maturity stage.
Introduction Growth MaturityMARKETING OBJECTIVESCreate product Maximise market Maximise profitsawareness and trial share whole defending market shareStrategiesProduct Offer a basic Offer value Increase in product/ added services number of value service. added services.Price Charge cost- Price to Price to match plus penetrate or best market competitorsDistribution Build selective Build Intensive Build more distribution distribution. intensive distribution.Advertising Build product Build awareness Stress brand awareness and interest in differences and among early the mass benefits. adopters and market dealers.Sales Promotion Use heavy sales Increase to Increase to promotion to build and encourage
entice people to maintain brand-subscribe. relationships switching. with customers.
OBJECTIVES OF THE STUDYObjectives:• To study the importance and development of tele – communication industry in today’s scenario.• To understand the various Marketing Strategies which Airtel has adopted to survive in highly competitive cell phone industry.• To make a comparative study of the major players in Indian Service Provider.
RESEARCH METHODOLOGYThe methodology adopted for this project is exploratory in naturesince there is no hypothesis that has to be tested. The conclusionshave been drawn by exploratory research work.There have been two sources of information collected:a) Primary SourcesI have met retailers of the Airtel of the company and have beenable to get first hand information regarding the product, itsfeatures and the buying patterns of the product. Their input hasbeen valuable.b) Secondary SourcesSecondary source has played a vital role to play in this report. Agood amount of data has been collected from various publishedarticles and reports found in magazines and journals. Another vitalsource has been the Internet and particularly the companies ownwebsite.
LIMITATIONSEvery attempt will be taken to obtain the error free and meaningfulresult but as nothing in this world is 100% perfect I believe thatthere will still the chance for error on account of followinglimitations-(1) Respondent’s unavailability.(2) Time pressure and fatigue on the part of respondents and interviewer.(3) Courtesy bias.
FINDINGS1. Do you believe that India is potentially one of the mostexciting mobile service providers in the world?Company Yes NoAirtel 4 1Vodafone 4 1Idea 4 1MTNL 4 1As according to the above table 16 (80%) out of the total 20interviewed people in all the above four specified Indian mobileservice providers are of belief that India is potentially one of themost exciting mobile service providers in the world, whereas some4 (20%) of them do not agree to this view. No 1 1 1 1 Yes 4 4 4 4 0 2 4 6 8 10 12 14 16 18 AirTel Vodafone Idea MTNL
2. Do you find that the government’s telecom policy has hadthe most radical impact on the development of mobile serviceproviders? Company Yes No Airtel 4 1 Vodafone 3 2 Idea 3 2 MTNL 5 --As according to the above table 15 (75%) out of the total 20interviewed people in all the above four specified Indian mobileservice providers find that the government’s telecom policy has hadthe most radical impact on the development of mobile serviceproviders, whereas some 5 (25%) of them deny this. 5 4.5 4 3.5 AirTel 3 Vodafone 2.5 Idea 2 MTNL 1.5 1 0.5 0 Yes No
3. Do you believe that one of the challenges facing mobileoperators in India is the diversity of the coverage regions? Company Yes No Airtel 2 3 Vodafone 3 2 Idea 3 2 MTNL 2 3As according to the above table 10 (50%) out of the total 20interviewed people in the mobile service providers are of belief thatone of the challenges facing mobile operations in India is thediversify of the coverage regions, whereas interestingly another 10(50%) of them deny this. 3 2.5 2 AirTel Vodafone 1.5 Idea MTNL 1 0.5 0 Yes No
4. To what extent, does you find that mobile service providersis a very complex standard?Company To some extent To great extent (1-5) (6-10)Airtel 3 2Vodafone 2 3Idea 2 3MTNL 3 2As according to the above table 10 (50%) out of the total 20interviewed people in all the above four major the mobile serviceproviders in Indian Cellular industry find only to some extent thatGSM is a very complex standard, whereas the another 10 (50%)respondents find to great extent that mobile service providers is avery complex standard. 3 2.5 AirTel 2 Vodafone 1.5 Idea 1 MTNL 0.5 0 To some extent To great extent
CONSUMER LEVEL1. Do you believe that mobile service providers comes close tofulfilling the requirements for a personal communicationsystem? Company Yes No Airtel 9 1 Vodafone 8 2 Idea 8 2 MTNL 5 5As the above shows 30 (75%) out of total 40 respondents are of thebelief that mobile service providers comes close to fulfilling therequirements for a personal communication system, whereas 10(25%) of them are in no way to this belief. 3 2 No 2 2 MTNL Idea Vodafone 2 AirTel 3 Yes 3 3
2. Do you find that mobile service providers as the mostexciting and satisfying mobile standard? Company Yes No Airtel 9 1 Vodafone 7 3 Idea 8 2 MTNL 8 2As the above shows 32 (80%) out of total 40 respondents find thatmobile service providers as the most exciting and satisfying mobilestandard, whereas the remaining 8 (10%) respondents deny this. No 1 3 2 2 Yes 9 7 8 8 0 5 10 15 20 25 30 35 AirTel Vodafone Idea MTNL
3. Do you believe that your service provider has a genuinecommitment to creating a modern and efficientcommunications? Company Yes No Airtel 10 -- Vodafone 8 2 Idea 10 -- MTNL 8 2As the above shows 36 (90%) out of total 40 respondents are of thebelief that their service providers have a genuine commitment tocreating a modern and efficient communications whereas theremaining 4 (10%) respondents deny this. 2 0 No 2 0 MTNL Idea Vodafone 8 AirTel 10 Yes 8 10 SWOT ANALYSIS
STRENGTHS• Cost advantage• Current leaders in quality service• Largest distribution network• Ability to constantly innovate• Highly skilled workforce• Entrepreneurial zeal• Airtel’s increased equity and market cap.WEAKNESSES• To prove credibility• Price pressures• Need for Government support• Awareness• Sales and Marketing
OPPORTUNITIES• To sustain passion and commitment• Airtel’s market share increasing at other service provider expense. Thus opportunity to wipe it out.• Attain higher value services• Collaborative business needs to be explored• Vertical repeatable solutions.• Low penetration level in rural markets.THREATS• Foreign investment• Global trends moving from GPS to WLL.• Lack of global parity in telecom tariff• Other competition
CONCLUSION From above the details I conclude that 70% Airtel userspreferred to remain with Airtel. Also good no. of users who werewilling to switch from their respective subscribers showed interestin Airtel. Hence, these statistics imply a bright future for thecompany. Also the company is now providing more services like thedoor to door services which is you dial the Airtel customer care andwould like to send someone flowers the Airtel company deliversthose flowers to the person concerned. Also Airtel is providing freetext messaging service and free voice mail service. Callconferencing is also another feature Airtel provides.
BIBLIOGRAPHY• Bernard J. T. Mallinder. Specification Methodology Applied to the GSM System. In EUROCON 88, June 2005.• Seshadri Mohan and Ravi Jain. Two User Location Strategies for Personal Communication Services. IEEE Personal Communications. 1(1), 1994.• Moe Rahnema. Overview of the GSM System and Protocol Architecture. IEEE Communications Magazine. April 1993.• C. Watson. Radio Equipment for GSM. In D.M. Balston and R.C.V Macario, editors, Cellular Radio Systems, Artech House, Boston, 1993.• Robert G. Winch. Telecommunication Transmission Systems. McGrawHill New York, 1993.• Vodafone• Airtel• Idea• MTNL
QUESTIONNAIRENAME: ____________________________________ADDRESS: ____________________________________OCCUPATION: ____________________________________1. Do you believe that India is potentially one of the most exciting mobile service providers in the world?Company Yes NoAirtelVodafoneIdeaMTNL2. Do you find that the government’s telecom policy has hadthe most radical impact on the development of mobile serviceproviders?Company Yes NoAirtelVodafoneIdeaMTNL3. Do you believe that one of the challenges facing mobileoperators in India is the diversity of the coverage regions?Company Yes NoAirtelVodafoneIdeaMTNL
4. To what extent, does you find that mobile service providersis a very complex standard?Company To some extent To great extent (1-5) (6-10)AirtelVodafoneIdeaMTNL
CONSUMER LEVEL1. Do you believe that mobile service providers comes close tofulfilling the requirements for a personal communicationsystem? Company Yes No Airtel Vodafone Idea MTNL2. Do you find that mobile service providers as the mostexciting and satisfying mobile standard? Company Yes No Airtel Vodafone Idea MTNL3. Do you believe that your service provider has a genuinecommitment to creating a modern and efficientcommunications? Company Yes No Airtel Vodafone Idea MTNL