A Study on Advertising Activities of Bharathi Airtel  Hyderadad
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A Study on Advertising Activities of Bharathi Airtel Hyderadad

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This is a SIP project report which gives u a clear-cut idea about the advt strategies and the profile of the Bharati Airtel and also competitors

This is a SIP project report which gives u a clear-cut idea about the advt strategies and the profile of the Bharati Airtel and also competitors

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A Study on Advertising Activities of Bharathi Airtel  Hyderadad A Study on Advertising Activities of Bharathi Airtel Hyderadad Document Transcript

  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 1 A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERABAD Submitted by Mr. MADHU BABU BHOGADI [0121PG104] Project Submitted in partial fulfillment for the award of Post-Graduate Degree in PGDM 2012-2014 New Delhi, Dwarka -110077
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 2 DECLARATION I hereby declare that this project Report titled A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERABAD submitted by me to ERA Business School,New Delhi, is bonafide work undertaken by me and it is not submitted to any other University or Institution for the award of any degree diploma/certificate or published any time before. Signature of the student MADHU BABU BHOGADI (0121PG104)
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 3 ACKNOWLEDGEMENT I convey my sincere thanks to external guide Mr. A. Deepak Kumar for giving me the throughout my project. I express my sincere gratitude to my guide Mr. Ajay Mehta, Professor in ERA Business School for giving me his valuable guidance and support in completing the project. I express my deepest thanks to all respondents for their co-operation of my project. I also express my sincere thanks to all the faculty members, librarians, friends and well-wishers who had helped me to do this project successfully.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 4 CONTENT CHAPTER – I Executive Summary 5 CHAPTER – II Introduction to Topic 7 - 9 CHAPTER – III Company Profile 10 - 32 3.1 – Promoters 15 3.2 – Vision and Mission 16 3.3 – Organization Structure 17 3.4 – Product line and Value Chain 18 - 19 3.5 –Porters Five Force Model 20 - 22 3.6 – Competitive Analysis 22 - 25 3.7 – Marketing Strategies 26 - 29 3.8 – SWOT Analysis 29 - 32 CHAPTER – IV About the Project 33 - 35 CHAPTER – V Literature Review 36 - 44 CHAPTER – VI Research Methodology 45 - 46 4.1 - Problem Definition 45 4.2 - Approach to the Problem 46 4.4 - Sources of data collection 46 4.5 - Primary sources 46 4.6 - Secondary sources 46 4.7 - Sampling techniques 46 CHAPTER – VII Data Analysis and Findings 47 - 60 CHAPTER – VIII Conclusion 61 CHAPTER – IX Recommendations 62
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 5 Bibliography and Appendix 63 - 65 Executive Summary: It is no wonder that in today‘s aggressive business environment, the challenges of sustaining in these competitive surroundings, preoccupies the minds of many Business leaders. Customers have many options to choose their telecom operator from competitive market. Furthermore, they often perceive that what they are purchasing is, for all practical purposes, a commodity that can be easily obtained from other companies, if need be. So, how does a corporation distinguish itself in a highly commoditized and competitive market? Today‘s business is more dependent, than ever before, on their top performing product to be innovate and provide services that differentiate a company from its fierce competitors. In other words, corporations rely upon their product and human assets to survive and thrive. Airtel is one of the leading telecom firms of the country. Airtel is providing intermediate services to the people of India since 1995. The company is largest cellular service provider in India and third largest in the world in the field of various telecom services like Mobile network, wireless, landline, broadband, satellite television, etc. The company is famous for world presence, vast network coverage, excellent service and brand image managed by experts. This project was carried out for BhartiAirtel, Begumpet, Hyderabad, Andhra Pradesh. This is one of the leading centers for marketing and sale of Airtel product and services in southern region. The project was carried out for 45 days as summer internship program in a systematic manner. This project report contains various section where I‘ve discussed about company profile, its present strength, porters 5forces model, competitive analysis, SWOT analysis, methodology used, sample size, sample unit, analysis and discussion, questionnaire, and annexure. After market study it can be said there is very tough competition between various telecom firms like Airtel, Vodafone, Aircel, BSNL, Idea,uninor, etc. But still Airtel is leading the market of Hyderabad.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 6 INTRODUCTION: Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These messages are usually paid for by sponsors and viewed via various media. Advertising can also serve to communicate an idea to a large number of people in an attempt to convince them to take a certain action. Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Mass media can be defined as any media meant to reach a mass amount of people. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail; or new media such as websites and text messages. "Strategy is the direction and scope of an organization over the long-term: which achievesadvantage for the organization through its configuration of resources within a challengingenvironment, to meet the needs of markets andto fulfill stakeholder expectations". In other words, strategy is about:
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 7 * Where is the business trying to get to in the long-term (direction) * Which markets should a business compete in and what kind of activities is involved in such markets? (markets; scope) * How can the business perform better than the competition in those markets? (Advantage)? * What resources (skills, assets, finance, relationships, technical competence, and facilities) are required in order to be able to compete? (Resources)? * What external, environmental factors affect the businesses' ability to compete? (Environment)? * What are the values and expectations of those who have power in and around the business? (stakeholders) Strategy at Different Levels of a Business: Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it. CorporateStrategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement". BusinessUnitStrategy - is concerned more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc. OperationalStrategy - is concerned with how each part of the business is organized to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc. How Strategy is Managed - Strategic Management
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 8 In its broadest sense, strategic management is about taking "strategic decisions" - decisions that answer the questions above. In practice, a thorough strategic management process has three main components, shown in the figure below: Strategic Analysis This is all about the analyzing the strength of businesses' position and understanding the important external factors that may influence that position. The process of Strategic Analysis can be assisted by a number of tools, including: PESTAnalysis - a technique for understanding the "environment" in which a business operates. ScenarioPlanning - a technique that builds various plausible views of possible futures for a business.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 9 FiveForcesAnalysis - a technique for identifying the forces which affect the level of competition in an industry. Market Segmentation - a technique which seeks to identify similarities and differences between groups of customers or users. Directional Policy Matrix - a technique which summarizes the competitive strength of a business‘s operations in specific markets. Competitor Analysis - a wide range of techniques and analysis that seeks to summarize a businesses' overall competitive position. Critical Success Factor Analysis - a technique to identify those areas in which a business must outperform the competition in order to succeed. SWOT Analysis - a useful summary technique for summarizing the key issues arising from an assessment of a business‘s "internal" position and "external" environmental influences. Strategic Choice: This process involves understanding the nature of stakeholder expectations (the "ground rules"), identifying strategic options, and then evaluating and selecting strategic options. Strategy Implementation Often the hardest part. When a strategy has been analyzed and selected, the task is then to translate it into organizational action.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 10 COMPANY PROFILE Airtel India Profile Type : Public Industry : Telecommunications Founded : New Delhi, NTC, India Founder(s) : Sunil Bharti Mittal Headquarters : New Delhi, NTC, India Area served : South Asia, Africa and the Channel Islands Key people : Sunil Bharti Mittal Products : Fixed line and mobile telephony, Broadband and Fixed line internet services, digital television and IPTV Employees : 21,300(Nov12) Subsidiaries : Airtel Africa Airtel Digital TV Airtel Sri Lanka Airtel Bangladesh
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 11 BhartiAirtel Limited, commonly known as Airtel, is an 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 271 million subscribers across 150 countries as of March 31, 2013. It is the largest cellular service provider in India, with 183.61 million subscribers as of Nov- 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 Indian telecom services under the airtel brand, and is headed by Sunil Bharti Mittal. BhartiAirtel 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 network-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 (BhartiInfratel Ltd. in India). Ericsson agreed for the first time to be paid by the minute for installation and maintenance of their equipment rather than being paid front, which allowed Airtel to provide low call rates of Rs.1/min. During the financial year (2009-10), Bharti negotiated for its strategic partner Alcatel-Lucent to manage the network infrastructure for the tele- media business. On 31 may 2012, BhartiAirtel awarded the three-year contract to Alcatel- Lucent for setting up an internet protocol access network across the country. This would
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 12 help consumer‘s access internet at faster speed and high quality internet browsing on mobile handsets. Airtel Branding Strategy Airtel has been the first player in India to offer some niche services like Blackberry, Caller Tunes, and personalized ringtones and has even attached itself with the biggest names like Sachin Tendulkar, AR Rahman and Shahrukh Khan to promote the brand. Airtel has always backed on human relations and emotions in their brand communication through its advertisements focusing on the emotional content. The brand promotions have come a long way with its signature tune composed by AR Rahman in the year 2002, to the latest campaigns inspired by the theme of friendship. In the 2010, Airtel launched a new signature tune and it even rebranded its logo and launched the “Dil Jo ChahePaasLaaye” campaign. This initiative was taken to target the corporate and post-paid subscribers with its new communication. In 2011, the brand launched the “HarEk Friend ZarooriHotaHai” campaign with a same signature tune modified to focus on the youth and targeting itself as ―The friendship brand‖. The campaign was a huge success with its lively tune. Since then, Airtel‘s campaigns have been inspired by the theme of friendship. In the year 2012, it launched the latest Ad campaign which complemented the earlier ad, focusing on friendship – “Jo MeraHai Who TeraHai”, which is again a hit amongst the viewers and its customers. Board of Directors: The Board of Directors of the Company has an optimum mix of Executive and Non-Executive Directors, which consists of three Executive and fifteen 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
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 13 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. The composition of the Board is as under:  Sunil Bharti Mittal  Akhil Gupta  Chua Sock Koong  N. Kumar  Ajay Lal  Craig Ehrlich  Pulak Prasad  RakeshBharti Mittal  Tan Yong Choo  Evan Mervyn Davies  RajanBharti Mittal  HuiWeng Cheong  NikeshArora  Salim Ahmed Salim  Tsun-yanHusieh  ManojKohli ACHIEVEMENTS: First to launch Cellular service on November 1995. First operator to revolutionaries the concept of retailing with the inauguration of Airtel Connect (exclusive showrooms) in 1995.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 14 First to introduce push button phone in India. First to expand its network with the installation for second mobile switching center in April, 1997 and the first to introduce the Intelligent Network Platform First to provide Roaming to its subscribers by forming an association called World 1 Network. First to provide roaming facility in USA. Enjoy the mobile roaming across 38 partner networks & above 700 cities Moreover roam across international destinations in 119 countries including USA, Canada, and UKetc. with 284 partner networks. BHARTI announces aggrement with VODAFONE marking the entry of the World's Largest Telecom Operator into India Bharti Enterprises and AXA Asia Pacific Holdings Limited announce Partnership for a life insurance joint venture in India Airtel Launches future factory - Centre‘s of Innovation to Incubate Pioneering Mobile Applications 16 states, 600 million people. Only India's leading mobile service offers you the truly 'freedom-packed' Prepaid! It is also the first company to export its products to the USA. Bharti Tele-Ventures: The businesses at Bharti Tele-Ventures have been structured into three individual strategic units (SBU‘s) – 1) mobile services 2) broadband and telephone services (B&T) 3) enterprise services
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 15 The Mobile services group provides GSM mobile services across India in 23 telecom circles, while B&T business group provides broadband & telephone services in 94 cities. The Enterprise Services group has two sub-units – carriers (long distance services) and services top corporate. All these services are provided under the Airtel brand. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti provides a range of telecom services, which include Cellular, Basic, Internetand recently introduced National Long Distance.Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 16 states covering all four metros. It has over 12 million satisfied customers - Sunil Bharti Mittal, Chairman, Bharti Tele-Ventures Promoters The company has a strategic alliance with SingTel. And vodafone is also a 4% shareholder of Bhartiairtelthe investment made by SingTel is one of the largest investments made in the world outside Singapore, in the company. The company‘s mobile network equipment partners include Ericsson and Nokia. In the case of the broadband and telephone services and enterprise services (carriers), equipment suppliers include Siemens, Nortel, Corning, among others. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. The call center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, and Teletech&Mphasis.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 16 Vision and Mission: Vision By 2015 Airtel will be the most admired brand in India:  Loved by more customers  Targeted by top talent  Benchmarked by more businesses To build India's finest business conglomerate by 2020 Supporting education of underprivileged children through Bharti Foundation Strategic Intent:  To create a conglomerate of the future by bringing about ―Big Transformations through Brave Actions.‖ Mission • ―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‖ • We will meet global standards for telecom services that delight customers through:  Customer Service Focus  Empowered Employees  Cost Efficiency  Unified Messaging Solutions  Innovative products and services  Error- free service delivery
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 17 Organization structure The group has been structured to create functional and operational specialization with a linear vision of business lines and functional areas. The Company is headed by Chairman and Group Managing Director- Sunil Bharti Mittal who is assisted by two Joint Managing Directors- GopalVittal (India) and ManojKohli (International). An apex team of Corporate Directors has been constituted. The corporate directors have supervisory and strategic responsibilities for functional areas across business lines. The directors oversee functional areas including Business Development, Human Resources, Marketing, Corporate Communication, IT & Technology, Finance, Legal, Corporate Affairs, Corporate Strategy & Planning and Supervisory Director cum Chief Mentor - mobility. The organization structure is designed to ensure that identical businesses are run along similar lines and best resources in any functional field, be tapped to serve the best interests of the entire group.The structure also defines the role of the Head of the units who are totally empowered to manage their respective companies and are
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 18 fullyresponsible for business operations to build world-class organizations with a high degree of customer focus. Product Line and Value Chain Product Line Airtel Broadband Airtel Landline Airtel 3G Airtel Mobile Airtel Leased Line Airtel Blackberry Airtel IPhone Airtel Money Airtel DTH
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 19 Value Chain Support Activities Firm Infrastructure:Tower setup, IT infrastructure, Telecom equipment‘s, networking stations and equipment‘s, ERP and various software to assist in operations HR Management:Hiring of IT skilled workforce and telecom operators. Hiring of customer support personnel and their training program.Expertise in recruiting the retail staff and quality of their training.Recruiting best in business leaders to take the company forward. Input • Operation Licenses • Finance for operations and setup of infrastructu re • Setting up Network infrastructu re in collaboratio n with third party • Software and support required to operate the Mobile telephony • Value added content providers of like games, mus ic etc. Operations • Develop and expand the infrastructure • Customize software to requirement • Develop the sim cards • Develop the network substations • Use the Mobile serives switching center to divert traffic to mobile or fixed systems • Integrate various network to achieve economies of scale Output •Broad Band Services •Fixed Line Services •GSM Services •VAS •DTH Marketing & Sales • Strong SIM distribution channel • First mover in developing better products • Introducion of new services to match the customer preferences • Innovative advertising campagins • Sales force compensati on tied to profit and not revenues • Customer awareness about latest technology Services • Coverage area of each airtel outlet • Customer Support • Technical assistance for broad band services • Duplicate Sim availability • Strong supplier channel for repairable parts • Opening new outlets in new circles
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 20 Technology Development:Development of various VAS services. Introduction of mCheck to enable consumers do mobile commerce. Investing in R & D. Creating and setting up of 3G network with new licenses coming in. Procurement:High initial investment required to setup up physical distribution towers and network stations. Long term contract with third parties are required. Strong Supply Chain Network is required to enable continuous supply of handsets and SIM cards. Industry Analysis Porters 5 force model The industry structure has become relatively unfavorable compared to earlier monopolistic times the earlier pattern used to be that the national telecom company used to own every segment of the value chain till the international gateway. With liberalization there was competition in virtually every segment. There are companies that provide local connectivity, those that function as long distance carriers, and those that provide only gateway links. Some integrated players operate in all segments. The intensity of competitive pressures across the chain is reflected in the downward spiral being witnessed in tariffs and prices to customer. The value chain for cellular mobile service and Internet Service Providers (other than cable based net connections) is similar in as much as the calls reach the destination through similar local loop, long distance and international gateway. Threat from Competition: HIGH Threat from Competition Customer Bargaining Power Threat of Substitutes Supplier Bargaining Power Threat of New Entrants
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 21 Companies like BSNL, MTNL, Vodafone, TATA, IDEA and Reliance continuously engage themselves in aggressive marketing and expansion and thus trying to eat into Bharti‘s market share. Threat from Customers: HIGH All the major telecom operators provide similar services. Customers can switch easily to another firm. With number portability a reality further gives them power to dictate. Lower prices are enjoyed by customers due to severe competition. Threat from Suppliers: LOW Long term contracts ensure future supply of handsets and SIM cards. High initial investments by suppliers mean they are dependent on few telecom operators for revenue, hence low bargaining power for them. These networks till now cannot be put to other profitable uses. Many companies are present to provide customer support at lowest prices. Many high end software making companies compete for telecom software develops thereby pushing the prices of these software low. Threat from New Entrants: LOW Huge initial investments and high gestation period. Highly regulated industry and it is very dynamic in nature. Low spectrum availability and introduction of new strategies by the existing firms. Threat from Substitutes: HIGH Fixed Line services are on decline. However the internet telephony is catching up giving telecom operators run for money. Video conferencing, Social Networking websites and Skype is reducing the need for mobile services. But the use of Broadband, DTH, services provided by the companies is high and the competition is high among these.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 22 Competitive Analysis Vodafone Essar Vodafone has given birth to Zoozoo a special character created specifically to convey a value added service (VAS) offering in each of the newly released commercials. Vodafone has come with creative advertising campaign for its various plans. This strategy has captured the imagination of millions. The strategy is a buzz that lives up to the brand image of great creative and clever marketing. In the first 10 days of IPL it has reached a cumulative of 89 million people. This is a wonderful strategy adopted by Vodafone. This has helped the company to raise not only its profits through sales but has also tremendously increased its brand value. Vodafone is the main competitor for Airtel with 153 million subscribers. Global giant Vodafone holds a strong position in the Indian telecom market. With various sponsorships and pan-India network, Vodafone is a big telecom player. Also, the ―zoozoo‖ ad campaigns have revitalized the brand and made these adorable characters as one of the most prominent marketing campaigns ever.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 23 IDEA CELLULAR Idea Cellular is a wireless telephony company operating in various states in India. The company has its retail outlets under the "Idea n' U" banner. The company has also been the first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban areas. Presently, operations exist in 11 Service Areas covering Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East, Rajasthan and Kerala. With a customer base of over 23 million, IDEA Cellular footprint currently covers approximately 60% of India's telecom population. A frontrunner in introducing revolutionary tariff plans; IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India in an increasingly segmented market. Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for their many firsts, Idea is only operator to launch GPRS and EDGE in the country. Idea has received international recognition for its path-breaking innovations when it won the GSM Association Award for "Best Billing and Customer Care Solution" for 2 consecutive years. Idea cellular has a market share of 122 million subscribers and one of the most prominent brands of Indian telecom industry are Idea, with a strong backup of the Birla group.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 24 Idea cellular has become a market leader in various circles and has also been in the lime-light through Idea Rocks India concert, KaunBanegaCrorpati and IPL team Delhi Daredevils. Reliance Communications The business of Reliance Communications is organized into three strategic customer facing business units: Wireless, Global, and Broadband. In addition, one of the wholly owned subsidiaries of Reliance Communications is engaged in the marketing and distribution of wireless handsets. Reliance Communications is one of the leading service provider in Indian telecom market with 123 million subscribers. Reliance Communications have a network spread over 25000 towns and 0.6 mn villages, and over 190,000 km of optic fiber cable systems. Apart from telecom, the company also boasts of Reliance Digital Big TV.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 25 Tata Teleservices Tata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an Indian Conglomerate. It runs the brand nameTata Indicom in India in various telecom circles of India. TTSL was the first company to offer CDMA Mobile services in India, specifically in the state of Andhra Pradesh. Tata is the direct competitor with other operators in India. The company provides unified telecommunication solutions including mobile, fixed wireless, fixed line and broadband. Other competitors like Vodafone, Airtel, Aircel, Idea, MTNL, and BSNL providing GSM based mobile telephony. The company was first in India to provide free intra network calling within city limits. They launched a unique scheme providing lifetime rental free connectivity on its mobile and fixed wireless for a one-time charge. The telecom services of the Group are offered under the brand name Tata Indicom, and cover all segments, from retail and enterprise to wholesale and international. Tata Indicom offers you a range of products and services like Wireless Internet, Wireless USB Modem and Mobile Phones so you are always connected. Landline Phones Net Telephony Internet & Broadband It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable,
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 26 technologically advanced network. The company, which heralded convergence technologies in the Indian telecom sector, is today the market leader in the fixed wireless telephony market with a total customer base of over 3.8 million. BHARAT SANCHAR NIGAM LTD Bharat Sanchar Nigam Limited provides telecommunications services in India. Its services include wire line and cellular services, as well as other value added services, such as voice mail service, short message service (SMS), group messaging, national and international roaming, call forwarding, corporate virtual private network, call conferencing, friend and family talk, call waiting, and call holding services. The company also provides 3G; wireless in local loop (WLL) mobile telephone; Internet; Web-hosting; Web co-location; SMS and bulk SMS; and broadband services. In addition, it offers managed network services; multi-protocol label switching based virtual private network (VPN) services; integrated services digital network (ISDN) services; data communication services; intelligent network services consisting of toll free phone service, universal access number, voice VPN, televoting, and virtual calling cards; and video, audio, and Web conferencing services. Further, the company provides fleet management solution comprising eTracK, an on-line tracking system to manage fleet, such as trucks, car carriers, trailers, tankers, containers, or vehicles carrying hazardous and specialty explosive chemicals; Inet services for use in various applications, including electronic mail services, corporate communications, information retrieval, database services, remote job applications, credit card verifications, travel reservations, and Internet
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 27 connectivity; telex/telegraph services; PABX/EPABX services; and DSPT services, as well as offers VSAT, voice over Internet protocol, and IN services. Marketing Strategy Positioning of the Company vs. a vs. Competitors Purpose of comparison The sub main purpose of this report is to compare the marketing strategies adopted by BhartiAirtel and its rival Vodafone. The comparison shows how both of the companies have been challenging each other to gain market share. Why comparison with Vodafone Airtel is the leader in telecommunication sector. Airtel holds the lion share of market of communication sector. However, Vodafone has been giving tough competition to Airtel. Vodafone is the second largest player and shareholder in telecom sector. Since its launch Vodafone has been adopting aggressive marketing strategies. Brand positioning by Airtel Market segmentation geographical segment (metropolitans & cities India) demographical segment – middle income groups People age group of 20 – 28 years. Target marketing People who living in cities and towns. Poor or middle income group people. Youngsters in big cities.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 28 Businessmen Positioning Creating brands (Sharukh khan &SachinTendulkar) Ads and promotions Promotion for study of poor children‘s Marketing mix Price: low price strategy Place: maximum outlets and service centers Product: verities available for various groups Promotion: various schemes for pre-paid and post-paid. Vodafone: Vodafone target the rural India The main targeted customers of Vodafone are from rural India. By offering cheap and light mobile sets Vodafone attracts most of the customers of small villages and towns. Offering cheap handsets Vodafone offers cheap and free connections to all customers. The cost for these sets was Rs-799-849-1099 per set and onward. In every district and big towns Vodafone opens its service centers to provide better support and services Strong logistics and supply chain Vodafone has a strong logistic and supply all over India. In every small town the potential customers can easily purchase the Vodafone SIM & Sets. Targeting youngsters in metropolitans Vodafone attracts youngsters by offering colorful handset at very low prices. Brand Positioning By Vodafone Market segmentation Geographical segment (rural India) Demographic segment - middle income groups
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 29 Target marketing People living in small towns and villages. Poor and middle income groups. Youngsters in big cities. Businessmen Positioning Creating brands Ads and promotions Marketing mix Price : low price strategy Place : maximum outlets and service centers Product : verities available for various groups Promotion: various schemes for pre-paid and post-paid SWOT Analysis Strengths BhartiAirtel has more than 183.61 million subscribers as of Mar13. It is the largest cellular provider in India, and also supplies broadband and telephone services - as well as many other telecommunications services to both domestic and corporate customers. Other stakeholders in BhartiAirtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the telecommunications world. The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 30 Airtel offers the most expansive roaming network. Letting you roam anywhere in India with its Pan-India presence, and trot across the globe with International Roaming spread in over 240 networks. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 92 cities. Airtel, the monopoly breaker shattered the Telecom monopoly in the International Long Distance space with the launch of International Submarine cable Network i2i jointly with Singapore Telecommunications Ltd. in the year 2002. This has brought a huge value to the IPLC customers, delivering them an option besides the incumbent carrier, to connect to the outside world. Weaknesses An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field. Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally. The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature. Airtel has tough competition from the operators like BSNL and MTNL as these two operators are offering services at a low rate. Although Airtel have strong Presence throughout the country but still they are far away from the Indian rural part and generally this part is covered by BSNL so indirectly Airtel is losing revenue from the rural sector. Opportunities
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 31 The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google. Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions. Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry approaches and practices - for example replacing the Revenue- Per-Customer model with a Revenue-Per-Minute model which is better suited to India, as the company moved into small and remote villages and towns. The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable - using its 'Matchbox' strategy. BhartiAirtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's long-term strategy. Threats Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors. The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 32 with talks about the potential purchase of South Africa's MTN in May 2008. This opened the door for talks between Reliance Communication's Anil Ambani and MTN, allowing a competing Indian industrialist to invest in the new emerging African telecommunications market. BhartiAirtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 33 About Project: The purpose of this project is to know about the advertising strategies followed by Airtel Company in order to aware the customers and the consumers about the availability of the different products of the company in the market and also to increase the sale of the products likewise the reputation of the company. Airtel is the most leading and admired brand in Andhra Pradesh with 32.7% market share of active subscribers, and also with a market share of 28.4% total subscribers. Airtel is providing the best telecom services with better promotional schemes and with heavy advertisement. The total subscribers of Airtel in Andhra Pradesh are 18,251,864 (by Mar-13) and the total active subscribers are 17,713,434(by Mar-13). ADVERTISING: As a business begins, one of the major goals of advertising must be to generate awareness of the business and its products. Once the business' reputation is established and its products are positioned within the market, the amount of resources used for advertising will decrease as the consumer develops a kind of loyalty to the product. Ideally, this established and ever-growing consumer base will eventually aid the company
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 34 in its efforts to carry their advertising message out into the market, both through its purchasing actions and its testimonials on behalf of the product or service. Essential to this rather abstract process is the development of a "positioning statement," as defined by Gerald E. Hills in "Marketing Option and Marketing" in The Portable MBA in Entrepreneurship: "A 'positioning statement' explains how a company's product (or service) is differentiated from those of key competitors." With this statement, the business owner turns intellectual objectives into concrete plans. In addition, this statement acts as the foundation for the development of a selling proposal, which is composed of the elements that will make up the advertising message's "copy platform." This platform delineates the images, copy, and art work that the business owner believes will sell the product. With these concrete objectives, the following elements of the advertising strategy need to be considered: target audience, product concept, communication media, and advertising message. These elements are at the core of an advertising strategy, and are often referred to as the "creative mix." Again, what most advertisers stress from the beginning is clear planning and flexibility. And key to these aims is creativity, and the ability to adapt to new market trends. A rigid advertising strategy often leads to a loss of market share. Therefore, the core elements of the advertising strategy need to mix in a way that allows the message to envelope the target consumer, providing ample opportunity for this consumer to become acquainted with the advertising message. The target consumer is a complex combination of persons. It includes the person who ultimately buys the product, as well as those who decide what product will be bought (but don't physically buy it), and those who influence product purchases, such as children, spouse, and friends. IMPORTANCE OF ADVERTISING: The purpose of advertising is motivating but to sell something a product, a service or an AIRTEL. The real objective of advertising is effective communication between
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 35 producers and consumers. In other words the ultimate purpose all advertising is ―Increased awareness‖ list of the following specific objectives of advertising.  To make on immediate AIRTEL  To build primary demand  To introduce a price deal  To inform about a products availability  To increase market share  To help salesman by building on awareness of a product among retailers  To increase the frequency use of a product  To build overall company image  To build brand recognition Airtel has been the first player in India to offer some niche services like Blackberry, Caller Tunes, and personalized ringtones and has even attached itself with the biggest names like Sachin Tendulkar, AR Rahman and Shahrukh Khan to promote the brand. Airtel has always backed on human relations and emotions in their brand communication through its advertisements focusing on the emotional content. The brand promotions have come a long way with its signature tune composed by AR Rahman in the year 2002, to the latest campaigns inspired by the theme of friendship. In the 2010, Airtel launched a new signature tune and it even rebranded its logo and launched the “Dil Jo ChahePaasLaaye” campaign. This initiative was taken to target the corporate and post-paid subscribers with its new communication. In 2011, the brand launched the “HarEk Friend ZarooriHotaHai” campaign with a same signature tune modified to focus on the youth and targeting itself as ―The friendship brand‖. The campaign was a huge success with its lively tune. Since then, Airtel‘s campaigns have been inspired by the theme of friendship. In the year 2012, it launched the latest Ad campaign which complemented the earlier ad, focusing on friendship – “Jo MeraHai Who TeraHai”, which is again a hit amongst the viewers and its customers.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 36 REVIEW OF LITERATURE An advertising strategy is a campaign developed to communicate ideas about products and services to potential consumers in the hopes of convincing them to buy those products and services. This strategy, when built in a rational and intelligent manner, will reflect other business considerations (overall budget, brand recognition efforts) and objectives (public image enhancement, market share growth) as well. As Portable MBAin marketing authors Alexander Hiam and Charles D. Schewe stated, a business's advertising strategy "determines the character of the company's public face." Even though a small business has limited capital and is unable to devote as much money to advertising as a large corporation, it can still develop a highly effective advertising campaign. The key is creative and flexible planning, based on an in-depth knowledge of the target consumer and the avenues that can be utilized to reach that consumer. Today, most advertising strategies focus on achieving three general goals, as the Small Business Administration indicated in Advertising Your Business: 1) promote awareness of a business and its product or services; 2) stimulate sales directly and "attract competitors' customers"; and 3) establish or modify a business' image. In other words, advertising seeks toinform, persuade, andremind the consumer. With these aims in mind, most businesses follow a general process which ties advertising into the other promotional efforts and overall marketing objectives of the business. STAGES OF ADVERTISING STRATEGY: As a business begins, one of the major goals of advertising must be to generate awareness of the business and its products. Once the business' reputation is established and its products are positioned within the market, the amount of resources used for
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 37 advertising will decrease as the consumer develops a kind of loyalty to the product. Ideally, this established and ever-growing consumer base will eventually aid the company in its efforts to carry their advertising message out into the market, both through its purchasing actions and its testimonials on behalf of the product or service. The target consumer is a complex combination of persons. It includes the person who ultimately buys the product, as well as those who decide what product will be bought (but don't physically buy it), and those who influence product purchases, such as children, spouse, and friends. In order to identify the target consumer, and the forces acting upon any purchasing decision, it is important to define three general criteria in relation to that consumer, as discussed by the Small Business Administration: 1. Demographics—Age, gender, job, income, ethnicity, and hobbies. 2. Behaviors—When considering the consumers' behavior an advertiser needs to examine the consumers' awareness of the business and its competition, the type of vendors and services the consumer currently uses, and the types of appeals that are likely to convince the consumer to give the advertiser's product or service a chance. 3. Needs and Desires—here an advertiser must determine the consumer needs— both in practical terms and in terms of self-image, etc.—and the kind of pitch/message that will convince the consumer that the advertiser's services or products can fulfill those needs. PRODUCT CONCEPT: The product concept grows out of the guidelines established in the "positioning statement." How the product is positioned within the market will dictate the kind of values the product represents, and thus how the target consumer will receive that product. Therefore, it is important to remember that no product is just itself, but, as Courtland L.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 38 Bovee and William F. Arens stated in Contemporary Advertising, a "bundle of values" that the consumer needs to be able to identify with. Whether couched in presentations that emphasize sex, humor, romance, science, masculinity, or femininity, the consumer must be able to believe in the product's representation. COMMUNICATION MEDIA: The communication media is the means by which the advertising message is transmitted to the consumer. In addition to marketing objectives and budgetary restraints, the characteristics of the target consumer need to be considered as an advertiser decides what media to use. The types of media categories from which advertisers can choose include the following: Print—primarily newspapers (both weekly and daily) and magazines. Audio—FM and AM radio. Video—Promotional videos, infomercials. World Wide Web. Direct mail. Outdoor advertising—Billboards, advertisements on public transportation (cabs, buses). After deciding on the medium that is 1) financially in reach, and 2) most likely to reach the target audience, an advertiser needs to schedule the broadcasting of that advertising. The media schedule, as defined by Hills, is "the combination of specific times (for example, by day, week, and month) when advertisements are inserted into media vehicles and delivered to target audiences." ADVERTISING MESSAGE: An advertising message is guided by the "advertising or copy platform," which is a combination of the marketing objectives, copy, art, and production values. This
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 39 combination is best realized after the target consumer has been analyzed, the product concept has been established, and the media and vehicles have been chosen. At this point, the advertising message can be directed at a very concrete audience to achieve very specific goals. Hiam and Schewe listed three major areas that an advertiser should consider when endeavoring to develop an effective "advertising platform": What are the product's unique features? How do consumers evaluate the product? What is likely to persuade them to purchase the product? How do competitors rank in the eyes of the consumer? Are there any weaknesses in their positions? What are their strengths? Most business consultants recommend employing an advertising agency to create the art work and write the copy. However, many small businesses don't have the up-front capital to hire such an agency, and therefore need to create their own advertising pieces. When doing this a business owner needs to follow a few important guidelines. COPY when composing advertising copies it is crucial to remember that the primary aim is to communicate information about the business and its products and services. The "selling proposal" can act as a blueprint here, ensuring that the advertising fits the overall marketing objectives. Many companies utilize a theme or a slogan as the centerpiece of such efforts, emphasizing major attributes of the business's products or services in the process. But as Hiam and Schewe caution, while "something must be used to animate the theme …care must be taken not to lose the underlying message in the pursuit of memorable advertising." When writing the copy, direct language (saying exactly what you mean in a positive, rather than negative manner) has been shown to be the most effective. The theory here is that the less the audience has to interpret, or unravel the message, the easier the message will be to read, understand, and act upon. As Jerry Fisher observed in Entrepreneur, "Two-syllable phrases like 'free book,' 'fast help,' and 'lose weight' are
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 40 the kind of advertising messages that don't need to be read to be effective. By that I mean they are so easy for the brain to interpret as a whole thought that they're 'read' in an eye blink rather than as linear verbiage. So for an advertiser trying to get attention in a world awash in advertising images, it makes sense to try this message-in-an-eye-blink route to the public consciousness—be it for a sales slogan or even a product name." The copy content needs to be clearly written, following conventional grammatical guidelines. Of course, effective headings allow the reader to get a sense of the advertisement's central theme without having to read much of the copy. An advertisement that has "50% off" in bold black letters is not just easy to read, but it is also easy to understand. ART WORK AND LAYOUT: Small business owners also need to consider the visual rhetoric of the advertisement, which simply means that the entire advertisement, including blank space, should have meaning and logic. Most industry experts recommend that advertisers use short paragraphs, lists, and catchy illustrations and graphics to break up and supplement the text and make the document both visually inviting and easy to understand. Remember, an advertisement has to capture the reader's attention quickly. ADVERTISING BUDGET: The advertising budget can be written before or after a business owner has developed the advertising strategy. When to make a budget decision depends on the importance of advertising and the resources available to the business. If, for instance, a business knows that they only have a certain amount of money for advertising then the budget will tend to dictate what advertising is developed and what the overall marketing objectives will be. On the other hand, if a business has the resources available, the advertising strategy can be developed to meet predetermined marketing objectives. For small businesses, it is usually best to put together an advertising budget early in the advertising process.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 41 The following approaches are the most common methods of developing an effective budget. All the methods listed are progressive ones that look to perpetuate growth: Percentage of future or past sales Competitive approach Market share All available funds The task or objective approach The easiest approachand thus the one that is most often usedis the percentage of future or past sales method. Most industry experts recommend basing spending on anticipated sales, in order to ensure growth. But for a small business, where survival may be a bigger concern than growth, basing the advertising budget on past sales is often a more sensible approach to take. METHODS OF ADVERTISING: Small business owners can choose from two opposite philosophies when preparing their advertising strategy. The first of these, sometimes called the push method, is a stance wherein an advertiser targets retail establishments in order to establish or broaden a market presence. The second option, sometimes called the pull method, targets end-users (consumers), who are expected to ask retailers for the product and thus help "pull" it through the channel of distribution. Of course, many businesses employ some hybrid of the two when putting together their advertising strategy. PUSH METHOD: The aim of the push method is to convince retailers, salespersons, or dealers to carry and promote the advertiser's product. This relationship is achieved by offering inducements, such as providing advertising kits to help the retailer sell the product, offering incentives to carry stock, and developing trade promotions. PULL METHOD:
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 42 The aim of the pull method is to convince the target consumer to try, purchase, and ultimately repurchase the product. This process is achieved by directly appealing to the target consumer with coupons, in-store displays, and sweepstakes ANALYZINGADVERTISINGRESULTS: Many small businesses are distressingly lax in taking steps to monitor whether their advertising efforts are having the desired effect. Instead, they simply throw a campaign out there and hope for the best, relying on a general sense of company health when determining whether to continue, terminate, or make adjustments to advertising campaigns. These small business owners do not seem to recognize that myriad factors can influence a business's fortunes (regional economic straits, arrival of new competition, seasonal buying fluctuations, etc.). The small business owner who does not bother to adequately analyze his or her advertising efforts runs the danger of throwing away a perfectly good advertising strategy (or retaining a dreadful one) if he or she is unable to determine whether business upturns or downturns are due to advertising or some other factor. The only way to know with any accuracy how your advertising strategy is working is to ask the consumer, the opinions of who can be gathered in several ways. Although many of the tracking alternatives are quite specialized, requiring a large budget or extensive advertising research expertise, even small businesses can take steps to measure the effectiveness of their advertising strategies. The direct response survey is one of the most accurate means of measuring the effectiveness of a company's advertising for the simple reason that it measures actual responses to a business's advertisements. Other inexpensive options, such as use of redeemable coupons, can also prove helpful in determining the effectiveness of an advertising campaign. PROMOTIONAL STRATEGY: As competition in the telecom arena intensified, service providers took new initiatives to woo customers. Prominent among these were - celebrity endorsements, loyalty rewards, discount coupons, business solutions and talk time schemes. The most important
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 43 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 providers. Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market. Hutch implemented the celebrity endorsement strategy partially, relying primarily on its creative advertising for the promotion of its brand. BSNL, on the other hand, attracted the consumer through its low cost schemes. Being a state owned player, BSNL could cover rural areas, and this helped it increase its subscriber base. Reliance was another player that cashed on its innovative promotional strategies, which included celebrity endorsements and attractive talk time schemes. Idea relied heavily on its creative media advertising sans celebrities. RAHMAN TUNE CROSSES AIRTEL’S EXCLUSIVITY BARRIER: Cellular service provider Airtel seems to have hit the right note with its new commercial starring musician A R Rahman. The commercial which is currently on air has a beat which also doubles up as a ringtone which is ostensibly available only to Airtel users. But the interesting part is that the ringtone is being flaunted not just by Airtel customers but by customers of rival service providers like BPL, Orange and Dolphin as well! The ringtone which is also the jingle for Airtel‘s TV commercial, is proving to be a potent advertising tool for the company. It is not very clear what this means for the other cellular operators. Cellular users have been ―forwarding‖ the tune to one another, which according to Mr.Pota, has given Airtel a chance to enter the ―mind of the user‖ irrespective of which service he opts for. Rivals, though seemingly unfazed by the phenomenon, seem to be doing their own homework on this brand of advertising. While none of them commented on Airtel‘s strategy and its impact on their own subscriber base, one advertising professional working with a rival service provider opines that the tune is ―transient‖ and not likely to have any long term impact as a brand building tool.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 44 TENDULKAR & SHAHRUKH: Both Tendulkar and King Khan already share the frame for soft drinks major PepsiCo India. Tendulkar is not the first cricketer to endorse Bharti‘sAirtel brand. Indian captain SauravGanguly had done so when Airtel launched its service in the eastern metropolis of Kolkata in 2001. Though company executives were mum on the value of the Tendulkar deal, those in the advertising fraternity peg the signing rate for the three-year deal anywhere between Rs 8 crore and Rs 10 crore. According to company executives, the idea of roping in Tendulkar is in line with the group‘s strategy to connect to the mass market through celeb endorsers from movies, cricket and music. ―For mass connect, Shah Rukh and Sachin are the best bet as brand endorsers,‖Bharti plans to launch a multimedia campaign targeting its service at the mass market.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 45 RESEARCH METHODOLOGY Problem Definition: Need for the study: All companies need promotion for their business at some point or another. Whether its word of mouth or a Television ad more than likely you will find any number of companies advertising. The more effective an advertising campaign, the more the customers it draws, and with greater frequency. Strategies are necessary for any organization in advertising department of the company as its plays a vital role in today‘s global competition. It is of great importance for any company to understand their advertising strategy. To asses that, the study has been undertaken. Objectives of the study:  To know the advertising Effectiveness of Airtel Cellular service.  To find out the awareness level of customers about Airtel promotional activities.  To understand customers‘ expectations from the organization. Period of the study: The study has been under taken during the period of May 12 2011 to July 11 2011. Approach to the Problem: My approach to the problem is in the form of a questionnaire. The study is only restricted to the twin cities (Hyderabad and Secunderabad) and is carried for the period of 2 months with 100 respondents. Limitations:  Duration of time is limited for the project work.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 46  The results derived may not be appropriate due to less sample size. SOURCE OF DATA: Primary Data: The primary data is collected through a well-structured questionnaire. The questionnaires are distributed among 100 people and their views are recorded. Secondary Data: Secondary data means the information already available. Secondary data is collected from newspapers, websites and company journals. Sampling Techniques QUESTIONNAIRE: A Questionnaire is carefully completed logical sequence of question directed to a define objective. It is the outline of what information is required and the framework on which the data is built upon. Questionnaire is son commonly used in securing market information that its preparation deserves utmost skill and care. FORMS OF QUESTIONS: OPEN ENDED QUESTIONS: They are descriptive in nature. Respondents are allowed to answer in their own words. Such questions buying the actual opinion of the respondent regarding a product CLOSED ENDED QUESTIONS: They are not descriptive in nature. They will be given certain choices and the respondents have to choose choice among them. They make analysis easy but sometimes they restrict the respondents‘ choices.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 47 DATA ANALYSIS AND INTERPRETATION 1. How do you know about AIRTEL cellular service? INFERENCE: 34% 55% 11% Friends Advertisement Other source Airtel Known by Respondents Percentage Friends 34 34% Advertisement 55 55% Other source 11 11%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 48 Most of the respondents are know about airtel through advertising that is 55%, through friends34% and 13% of the respondents known through othersources like if cusotmers buy nokia they give airtel sim at free of cost,relativies. 2. What feature of AIRTEL forced you to use it? INFERENCE: 29% 10% 46% 20% Features forced to use airtel Advertisement Connectivity Schemes Goodwill Features forced to use airtel Respondents Percentage Advertisement 29 29% Connectivity 10 10% Schemes 46 46% Goodwill 20 20%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 49 46% of the respondents are forced to use schemes provided by airtel, 29% are more attracted by airtel advertisements to use airtel,20% of the people believe that airtel good will,10% like to use because of connectivity 3. What is your first choice of cellular service when you want to use mobile phone? First choice of cellular Respondents Percentage Airtel 40 40% Vodafone 15 15% Idea 6 6% Aircel 2 2% Reliance 8 8% Tata indicom 3 3% Docomo 13 13% BSNL 10 10% Uninior 1 1% MTS 2 2%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 50 INFERENCE: Most of the people say that when they wont to use mobile phone their first choice of cellular service is airtel that is 40%,15% of people choice Vodafone,6% use idea, 2% use aircel,8% use reliance, 3% use tataindicom,13% use docomo,10% use bsnl,1% use uninor and 2% like to use mts. 4. Which was your previous telecom service? 40% 15% 6% 2% 8% 3% 13% 10% 1% 2% FIRST CHOICE OF CELLULAR Airtel Vodafone Idea Aircel Reliance Tata indicom Docomo Bsnl Uninior Previous telecom service Respondents Percentage Airtel 20 20% Vodafone 18 18% Idea 12 12% Aircel 4 4% Reliance 8 8% Tata indicom 4 4% Docomo 5 5% BSNL 25 25% Uninior 2 2% MTS 2 2%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 51 INFERENCE: Most of the people say that their previous cellular service is BSNL that is 20%,18% of people previous choice Vodafone,12% use idea, 4% use aircel,8% use reliance, 4% use tataindicom,5% use docomo,20% use airtel, 2% use uninor and 2% like to use MTS. 5. Which feature of airtel is better than your previous cellular service? 20% 18% 12%4% 8% 4% 5% 25% 2% 2% previous telecom service Airtel Vodafone Idea Aircel Reliance Tata indicom Docomo Bsnl Uninior FEATURES Respondents Percentage Advertisement 37 37% Connectivity 19 19% Schemes 44 44%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 52 INFERENCE: 37% of the people say that advertisements are better than their previous cellular service,19% says connectivity good in airtel than previous one and 44% of people says schemes are more in airtel. 6. Airtel users in your phone book. 37% 19% 44% Advertisement Connectivity Schemes Airtel users In phonebook Respondents Percentage Less than 30% 36 36% 30%-70% 49 49% More than 70% 15 15%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 53 INFERENCE: People says that in their phone book 36% of less than30% airtel users are there, between 30% to 70% airtel users there in 49% of people phone books and more than 70% of airtel users there in 15% of people phone books. 7. Type of advertisements you prefer for promoting telecom services? 36% 49% 15% airtel users in your phone book Less than 30% 30%-70% More than 70% Type of advertisements prefer to promoting telecom services Respondents percentage Television 49 49% Radio 5 5%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 54 INFERENCE: 49% of respondents are like advertisement through television in telecom service,27% of the people like newspapers adds,11% are like magazines,8% are like wall printings and 5% are like radio. 8. Type of advertisement mostly like by people in airtel is? 49% 5% 27% 11% 8% prefer of promotion Television Radio News paper Magazines Wall printing News paper 27 27% Magazines 11 11% Wall printing 8 8% Most liked advertisement in airtel Respondents percentage Audio visual 63 63% Print 19 19%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 55 INFERENCE: In airtel people mostly like audio visual advertisements that is 63%, 19% like print media and 13% are like audio only. 9. Which celebrity of AIRTELdo you like the most? 63% 19% 13% most you liked in airtel adds Audio visual Print Audio Audio 13 13% Most liked Celebrity of airtel Respondents Percentage SachinTendulkar 37 37% Sharukh 22 22% Kareena 12 12%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 56 INFERENCE: 37% of people mostly like SachinTendulkaradds in airtel, 22% like sharukh, 29% are like A.R. Rehman and 12% of people like kareena. 10. Will you take benefits of schemes offered by AIRTEL? 37% 22% 12% 29% celebrity you like Sachin tendulkar Sharukh Kareena A.R.Rehman A.R.Rehman 29 29% Opinion Respondents Percentage YES 58 58% NO 11 11%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 57 INFERENCE: 58% of people are enjoyed schemas offered by airtel,12% of people are not take benefits offered by airtel and 28%can‘t say about that. 11. What option of AIRTEL do you like from the following? 58% 11% 28% 0 YES NO Can’t say Can‘t say 28 28% Option Respondents Percentage NOKIA+AIRTEL 46 46% AIRTEL MAGIC 21 21%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 58 INFERENCE: The combination of nokia and airtel is like most of the people that 46%,airtel magic like 21%,postpaid services like 9% and 22% like airtel broadband. 12. Do you wish to participate in contests offered by airtel? 46% 21% 9% 22% which one you like NOKIA+AIRTEL AIRTEL MAGIC POSTPAID SERVICES AIRTEL Broadband POSTPAID SERVICES 9 9% AIRTEL Broadband 22 22% Willingness Respondents Percentage Yes 39 39%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 59 INFERENCE: Most of the people are not to participate in contests offered by airtel that is 61% and 39 of the people are like to participate in contests offered by airtel. 13. Type of recharge options that you like? 39% 61% participate in contests Yes No No 61 61% Recharge Options Respondents Percentage More talk time 16 16%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 60 INFERENCE: Most of the people like to use more talk time and more validity recharge options that 73%,16% they like to use more validity recharge options and 11% like to use more talk time recharge options. FINDINGS & LEARNINGS 1. 55% of respondents come to know about airtel through advertisements, followed by 34% through friends and 11% through other sources, like parents, colleagues and relatives. 16% 11% 73% Recharge options that you like More talk time More validity Both More validity 11 11% Both 73 73%
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 61 2. 46% of respondents are interested in nokia+airtel, 22% like Airtel broadband services, 21% preferred airtel magic and 9% preferred postpaid services. 3. 63% of respondents mostly like audio visual in Airtel advertisements followed 19% like print media and 13% like audio. 4. 16% of respondents like more talk time and 11% like more validity.73% of respondents like both. 5. 46% of the respondents are forced to use schemes provided by airtel, 29% are more attracted by airtel advertisements to use airtel,20% of the people believe that airtel good will,10% like to use because of connectivity 6. First choice of cellular service is airtel that is 40%,15% of people choice Vodafone,6% use idea, 2% use aircel,8% use reliance, 3% use tataindicom,13% use docomo,10% use bsnl,1% use uninor and 2% like to use mts. 7. 37% of the people say that advertisements are better than their previous cellular service,19% says connectivity good in airtel than previous one and 44% of people says schemes are more in airtel. 8. 49% of respondents are like advertisement through television in telecom service,27% of the people like newspapers adds,11% are like magazines,8% are like wall printings and 5% are like radio. 9. In airtel people mostly like audio visual advertisements that is 63%, 19% like print media and 13% are like audio only. 10. Airtel is most concerned about customers, followed by Vodafone, Idea, BSNL, Reliance, Docomo, Tata Indicom, Uninor, Aircel and MTS. RECOMONDATIONS: 1. AIRTEL is successful in grabbing the highest market share in India, but there are still some recommendations from my study point of view is that AIRTEL have to increase their advertisements through print media.
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 62 2. AIRTEL not providing more talk time and more validity recharge options. I recommend that they have to provide that type of recharge options. 3. People are showing more interest to buy nokia+airtel combination. I suggest that Airtel have to concentrate on this combination. 4. The company is not concentrating on other types of advertising media. 5. Network should be expanding to rural villages. 6. The company should conduct road shows so as to get awareness in the public about the product and services. 7. First of all company should provide all its dealers and retailers all sort of promotion equipment such as glow sign board, banner, pumplates etc. in time so that they increase their sales which is benefited both retailer as well as company. 8. Number of hoarding should be increased. 9. To increase the consumer as on network, company should make change in its FRC plan for example the talk value should be divided in two parts. 50% of talk value should provide at the time of activation and rest T.T. provide after gap of some days. 10. Company should give extra return and other bonus, gifts to its retailers so they put their full efforts to increase the Airtel sales. 11. Company should motivate its sales staff so they will pay more concentration in sales and activation of new connections. CONCLUSION: The conclusion of my study is that AIRTEL‘s Advertising has a major impact on its users. People like its schemes very much .AIRTEL had created a very good image on the
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 63 mind of the new users of cellular service. AIRTEL has adopted a very good strategy by providing a new connection with NOKIA who is market leader in mobile set, many new users buy Nokia sets and they get a free connection of AIRTEL. AIRTEL is successful in capturing the highest market share by adopting Celebrity Endorsement Strategy. A.R. Rehmaan‘s tune for AIRTEL worked as free advertising for AIRTEL as another service user uses it too. Other celebrities like Shahrukh Khan (Bollywood) and Sachin Tendulkar (Cricket) has also contributed very much in AIRTEL. Everything in this world is made to utilize properly but it should be reach at the proper person or to the proper utilized areas. Otherwise the value added to those things became in vein. Thus promotion role plays a very important role in achieving the objectives of a company. Un doubly, value utility is created by the manufacture of product or service but time and place utilities are created by marketing role. The various finding and befitting recommendation have been made to increase the market share of each product (postpaid, prepaid) of Airtel thereby increasing the market share of Airtel as a whole. Various facts and data have been enclosed for better perusal and various graphs have been provided for better comprehension. Sales Promotion techniques yield results that many other marketing communication elements cannot achieve. Sales promotion that is used in with the overall long-turn communication strategy of the brand is said to use strategically. A promotion should not be used for the sole purpose of altering sales in the short run. Sales promotion is used as a very strategic tool to introduce a new product. Although advertising plays a large role towards creating awareness and attitude information, sales promotion used to make new product launch easier and more effective. BIBLIOGRAPHY
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 64 WEBSITES: o www.google.co.in o www.airtel.com NEWSPAPERS: o Times of India o The Hindu BOOKS: APPENDIX QUESTIONNAIRE S.NO Title of book Author Edition Publishers 1 Marketing Management Dr.S.L.Varshney Dr.R.L.Guptha Third Sulthan Chand and sons 2 Marketing Management Philip Kotler and Keller Thirteenth Pearson
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 65 A STUDY ON ADVERTISING STRATEGY OF BHARATI AIRTEL, HYDRABAD Name of the Respondent: Age: Occupation: Income/month: 1) How do you know about AIRTEL cellular service? A) Friends B) Advertisements C) Other Sources………… 2) What feature of AIRTEL forced you to use it? A) Advertisements B) Connectivity C) Schemes D) Goodwill 3) What is your first choice of cellular service when you want to use mobile phone? Airtel [ ] Vodafone [ ] Idea [ ] Aircel [ ] Reliance [ ] Tata indicom [ ] Docomo [ ] BSNL [ ] Uninor [ ] MTS [ ] 4) Which was your previous telecom service? Airtel [ ] Vodafone [ ] Idea [ ] Aircel [ ] Reliance [ ] Tata indicom [ ] Docomo [ ] BSNL [ ] Uninor [ ] MTS [ ] 5) Which feature of AIRTEL is better than your previous cellular service? A) Advertisements B) Connectivity C) Schemes 6) AIRTEL users in your phone book? (in %). A) Less than 30% B) 30% - 70% C) More than 70% 7) Type of advertisement you prefer for promoting telecom service? A) Television B) Radio C) News Paper D) Magazines E) Wall Painting
  • A STUDY ON ADVERTISING ACTIVITIES OF BHARTI AIRTEL, HYDERADAD Page 66 8) Type of advertisement mostly like by people in AIRTEL is? A) Audio Visual B) Print C) Audio 9) Which celebrity of AIRTEL does you like the most? A) Sachin Tendulkar B) Sharukh C) Kareena D)A. R. Rehman 10) Will you take benefits of schemes offered by AIRTEL? A) YES B) NO C) CAN‘T SAY 11) What options of AIRTEL do you like from the following? A) NOKIA + AIRTEL B) AIRTEL MAGIC C) Postpaid services D) AIRTEL Broadband 12) Do you wish to participate in contests offered by AIRTEL like BID TO WIN? A) YES B) NO 13) Type of recharge options that you like? A) More talk time B) More validity C) Both