Airtel idea

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Airtel idea

  1. 1. A RESEARCH PROJECT ON “MARKETING STRATEGIES OF AIRTEL AND IDEA” (SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF BACHOLARS OF BUSINESS ADMINISTRATION)UNDER THE GUIDANCE OF: - SUBMITTED BY:Mr. JITIN SEHGAL Piyush Jain BBA Faculty BBA 05/12 2010-2013 N.C COLLEGE OF ENGINEERING, ISRANA (KURUKSHETRA UNIVERSITY, KURUKSHETRA)
  2. 2. CONTENTS• Acknowledgement• Preface• Introduction• Airtel• Idea• Objective of the study• Research Methodology• Analysis and Interpretation• Findings• Limitations of the study• Suggestions and Recommendation• Conclusion• Annexure o Bibliography o Questionnaire 2
  3. 3. DECLARATIONI PIYUSH JAIN, B.B.A., 2 nd year of my college A.I.M.C.S , herebydeclare that final project report entitled “Marketing strategy ofAIRTEL vs. IDEA” is an original work and the same has not beensubmitted to any other institute for award of any other degree.A seminar presentation of the training report was made on the date_______________ and suggestions as approved by the faculty wereduly incorporated. PIYUSH JAIN 3
  4. 4. PREFACE A determination to succeed is the only wayto succeed. For this, it is very important that allknowledge, which we have, should be translatedinto action. It is only then that we can achievesomething. Project work is the way to convertour raw talent into potential management.Classroom knowledge can only then be efficientwhen it is effectively wedded to the realities ofthe situation existing outside the classroom. Inthis project work place an important role. In thisregard, I was given a project entitled“MARKETING STRATEGY OF AIRTELAND IDEA” 4
  5. 5. ACKNOWLEDGEMENTSuccess is not brought inherited. It is a product of what we put in. Successbegins with a good feeling about where we are and a positive attitude aboutwhere we want to be. With this willingness, I have started this project. First of all, I would like to thank to the supreme power, the almightygod, who has always guided me to work on the right track of my life and hasalways blessed me with his blessing by giving me the best. Next to him aremy parents, whom I am greatly indebted for having me brought up with loveand encouragement. Next comes a person, without whose guidance and encouragement,this project report would not have been successful. So, I would like toexpress my gratitude towards Ms. Puja Mann, HOD, N.C.College ofEngineering, Israna. PIYUSH JAIN 5
  6. 6. EXECUTIVE SUMMARYFirst of all we have to know the meaning of research, research is increasing the knowledge in existing knowledge or we cansay that search for new ideas. So, I am taking out my research to find out the perception of the consumers towards different cellular services, I prepared my questionnaire and record the responses of consumers.The presented report is an effort to find solution for the present day Problem inthe cellular service providers. Where the Company interested to find out thesolution for the fact that being a AIRTEL the Number one in the cellular serviceprovider I proposed them to undertake a Strategic Market Research where wewould Read the Market perception of the AIRTEL and IDEA . Starting with theRetailer’s perception and then the Company’s Perception and finally Customer’sperception. We have presented this Research study with respect to three differentAreas with different samples size and completely different set of responseParameters.The sampling technique used in all the three spheres of Research is Exploratory.The data collected under all the three distinct perception point is completely 6
  7. 7. primary data as I was the prima fascia for theses responses. Primary data arecollected taking the view of consumers towards these cellular services. Andsecondary data also collected from the secondary sources like the customer careservices, business magazines.As a result of this research I have see the loose pools of the company to modifytheir strategy at certain points with respect to all the three perception nodes. Inthe Retailer’s perception segment I have suggested the Company to increase thenumber of visits at retailer outlet and boost the retailer with emotional supportand confidence. In Company’ perception I suggested them to improve thecellular services and introduce some new schemes to consumers with customerattracting schemes which should be available at dealers. 7
  8. 8. INTRODUCTION TO COMPANYToday the tele communication sector is very important in INDIA. There is verytough competition between various companies. Now a day’s telecommunicationcompanies offering various plans or benefits to customers to outstand thecompetition in the market. So, the telecommunication industry, in a way, createsemployment for people. So, I am here to study the marketing strategy ofcompanies on the consumers.After the liberalization of the Indian Telecom Sector in 1994, the Indian cellularmarket witnessed a surge in cellular services. By 2005, there were a total of 12players in the market with the five major players being Bharti Tele-VenturesLimited (Bharti), Bharat Sanchar Nigam Limited (BSNL), Hutchinson-Essarlimited (Hutch), Idea Cellular limited (Idea) and Reliance India Mobile (RIM),and Tata Indicom.As competition in the telecom arena intensified, service providers took newinitiatives to woo customers. Prominent among these were - celebrityendorsements, loyalty rewards, discount coupons, business solutions and talktime schemes. The most important consumer segments in the cellular industrywere the youth segment and the business class segment. The youth segment was 8
  9. 9. the largest and fastest growing segment and was therefore targeted most heavilyby cellular service providers.Bharti Tele-Ventures adopted celebrity endorsement as its chief promotionalstrategy. By 2004 it emerged the unprecedented leader commanding the largestmarket share in the cellular service market. Hutch implemented the celebrityendorsement strategy partially, relying primarily on its creative advertising forthe promotion of its brand. BSNL, on the other hand, attracted the consumerthrough its low cost schemes. Being a state owned player, BSNL could coverrural areas, and this helped it increase its subscriber base. Reliance was anotherplayer that cashed on its innovative promotional strategies, which includedcelebrity endorsements and attractive talk time schemes. Idea relied heavily onits creative media advertising sans celebrities. 9
  10. 10. AIRTELAirtel comes to you from Bharti Tele-Ventures Limited - a part of the biggestprivate integrated telecom conglomerate, Bharti Enterprises. A consortium ofgiants in the telecommunication business. In its six years of pursuit of greatercustomer satisfaction, Airtel has redefined the business through marketinginnovations, continuous technological up gradation of the network, introductionof new generation value added services and the highest standard of customercare. Bharti is the leading cellular service provider, with an all India footprintcovering all 23 telecom circles of the country. It has over 12 million satisfiedcustomers.Cellular telephony was introduced in India during the early 1990s. At that time,there were only two major private players, Bharti (Airtel) and Essar (Essar) andboth these companies offered only post-paid services. Initially, the cellularservices market registered limited growth.Moreover, these services were mostly restricted to the metros. Other factors suchas lack of awareness among people lack of infrastructural facilities, low standardof living, and government regulations were also responsible for the slow growth 10
  11. 11. of cellular phone services in India. Although the cellular services market in Indiagrew during the late 1990s (as the number of players increased and tariffs andhandset prices came down significantly) the growth was rather marginal. Thiswas because the cellular service providers offered only post-paid cellularservices, which were still perceived to be very costly as compared to landlinecommunications.Following this realization, the major cellular service providers in India, launchedpre-paid cellular services in the late 1990s. The main purpose of these serviceswas to target customers from all sections of society (unlike post-paid services,which were targeted only at the premium segment). Bharti Tele-Ventures is oneof Indias leading private sector providers of telecommunications services basedon an aggregate of 15,844, 382 customers as of October 31, 2005, consistingof 14, 740, 366 GSM mobile and 1, 104, 016 broadband & telephone customersThe businesses at Bharti Tele-Ventures have been structured into two mainstrategic business groups - the Mobility Leaders business group and the InfotelLeaders business group. The Mobility business group provides GSM mobileservices across India in twenty-three telecom circles, while the Infotel businessgroup provides broadband & telephone services, long distance services andenterprise services. All these services are provided under the Airtel brand.Bharti Enterprises has been at the forefront of technology and has revolutionizedtelecommunications with its world class products and services. Established in 11
  12. 12. 1976, Bharti has been a pioneering force in the telecom sector with many firstsand innovations to its credit.Bharti provides a range of telecom services, which include Cellular, Basic,Internet and recently introduced National Long Distance. Bharti alsomanufactures and exports telephone terminals and cordless phones. Apart frombeing the largest manufacturer of telephone instruments in India, it is also thefirst company to export its products to the USA. Bharti Tele-Ventures through itssubsidiary Bharti Telenet Limited (BTNL) holds the right to establish, maintainand operate a fixed-line telephone network in Haryana through a license valid for20 years from October 8, 2001.BTNL provides fixed-line services to approximately 114,400 customers as ofMarch 31, 2005 under the brand Airtel. BSNL also operates a fixed-linetelephone service within the same geographical area.Bharti is the leading cellular service provider, with a footprint in 16 statescovering all four metros. It has over 12 million satisfied customersBharti Enterprises has successfully focused its strategy on telecom whilestraddling diverse fields of business. From the creation of Airtel, one of Indiasfinest brands, to becoming the largest manufacturer and exporter of world classtelecom terminals under its Beetel brand, Bharti has created a significantposition for itself in the global telecommunications sector. Bharti Tele-Ventures 12
  13. 13. is today acknowledged as one of Indias finest companies, and its flagship brandAirtel, has over 12 million customers across the length and breadth of India.While a joint venture with TeleTech Inc., USA marked Bharti’s successful forayinto the Customer Management Services business, Bharti Enterprises’ dynamicdiversification has continued with the company venturing into telecom softwaredevelopment. Recently, Bharti has successfully launched an international venturewith EL Rothschild Group owned ELRO Holdings India Ltd., to export freshAgri products exclusively to markets in Europe and USA Bharti Tele-Venturesvision for its mobile business is “To make mobile communications a way of lifeand be the customers first choice”.The mission is to meet the mobile communication needs of the customer through1) error free service 2) Innovative products and services and 3) cost efficiency.The Company’s strategic objective is to consolidate its leadership positionamongst the mobile service providers in India.The Indian mobile market, according to the COAI, has increased fromapproximately 1.2 million subscribers as of March 31, 1999 to approximately41.03 million subscribers as of March 31, 2005.Despite this rapid growth, the mobile penetration rate in India, at approximately3.9% as of March 31, 2005, is significantly lower than the average mobilepenetration rate in other Asian and international markets. 13
  14. 14. The number of mobile subscribers in India is expected to show rapid growth overthe next four years. By 2006 it is projected at 50 million by COAI and 44 millionby Gartner. 14
  15. 15. Source:(1) Population estimates are as per National Census, 2001 and are as of March 1,2001. The population for Uttar Pradesh (West) circle is approximately 37% ofthe total population(2) Wireless subscriber statistics are as of March 31, 2005 and are based on data releasedby COAI. Wireless market size comprises the total number of wireless subscribers of all(3) Demographics of Maharashtra and Tamil Nadu do not include demographics of statecapitals (metros) Mumbai and Chennai respectively.(4) Demographics of Haryana does not include Faridabad & Gurgaon as they areincluded in Delhi & NCR. Similarly demographics of Uttar Pradesh (West) &Uttaranchal does not include Noida & Ghaziabad as they are included in DelhiNCR.The significant growth in the Companys mobile business has been through acombination of organic growth and acquisitions of additional licenses and hasbeen summarized below. The information given below is for the total market andis not representative of our market share or network coverage 15
  16. 16. . 16
  17. 17. As of March 31,As of Mar 31, 20061999(1)2000(2)2001(3)2005(4)Number of Mobile licenses held by us24523Total mobile subscribers in India (in millions)1.121.883.58 17
  18. 18. 1) Comprise the circles of Delhi and Himachal Pradesh. 2) Comprise the circles of Delhi, Himachal Pradesh, Karnataka and Andhra Pradesh. 3) Comprise the circles of Delhi, Himachal Pradesh, Karnataka, Andhra Pradesh and Chennai. 4) Comprise the twenty-one operational circles of Bharti Tele-Ventures. 5) Based on data released by the COAI on the total number of persons subscribing to mobile services in our licensed areaMOBILE STRATEGY • Capture maximum telecommunications revenue potential with minimum geographical coverage to maximize its revenues and margins. • Build high quality mobile networks by deploying state-of-the-art technology to offer superior services 18
  19. 19. Airtel valuesInn venturing• We will generate and implement entrepreneurial and innovative ideas, which willcontinuously create new growth engines.Customer First• We are committed to delivering service beyond the expectations of the customer. Ourquality of customer responsiveness clearly differentiates us from others. 19
  20. 20. Performance Culture• We benchmark our processes and performance against world-class standards. Wedistinguish between performers and non-performers by valuing achievement at theindividual as well as the team level. Ours is a culture of inclusively where feedback,learning and ideas are actively encouraged, sought and acted upon.Valuing Partnership• We are committed to building exemplary relationship with our partners, which stand onthe principles of mutual trust and mutual growth.Valuing People• We nurture an environment where people are respected and their uniqueness is valued.We believe that people are our key differentiators.Responsible Corporate Citizenship• We are committed to making a positive and proactive contribution to the community.As a responsible corporate citizen we will contribute to and abide by environmental andlegal norms.Ethical Practices• We will uphold the highest ethical standards in all internal and external relationship.We will not allow misuse or misrepresentation of any kind. 20
  21. 21. Board of DirectorsThe Board of Directors of the Company has an optimum mix of Executive andNon-Executive Directors, which consists of three Executive and eleven Non-Executive Directors.The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an ExecutiveDirector and the number of Independent Directors on the Board is more than 50%of the total Board strength. The independence of a Director is determined on thebasis that such director does not have any material pecuniary relationship withthe Company, its promoters or its management, which may affect theindependence of the judgment of a Director. 21
  22. 22. The Board members possess requisite skills, experience and expertise required totake decisions, which are in the best interest of the Company. Awards • The Asia Pacific Award for the Most Innovative HR practices-2000. • The Golden Peacock National Training Award for excellence in Training practices-2000. • The Golden Peacock National Quality Award-2001. • BCL is first mobile communication service provider in India to be certified for ISO 9001:2000 and 1st in world certified by British Standards Institution for Mobile Communication. • Born a leader, the first cellular service, AirTel has maintained leadership 22
  23. 23. IDEA CELLULARIdea Cellular — the three-way joint venture between Tata, Birla and US-basedAT&T — was called Birla Tata AT&T before being renamed in May 2002. It wasset up in January 2001 following the merger of Tata Cellular and Birla AT&TCommunications and is Indias leading cellular services provider.With Ideas acquisition of Escotel in early 2004, its footprint now covers around60 per cent of India’s population and over 65 per cent of the telecom market. Ithas presence in seven states: Maharashtra (excluding Mumbai), Goa, Gujarat,Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttar Pradesh (W), Haryana,Kerala and Delhi (inclusive of NCR). Having operations in four of the fivelargest cellular circles in India, Idea is the market leader in the Maharashtra and 23
  24. 24. Goa, Kerala, UP (W), Madhya Pradesh and Chattisgarh circles in terms ofnumber of subscribers. Each circle has its own dedicated call centre with asingle call resolution approach towards the customer.Idea covers over 3,660 small and major towns and villages along with a totalhighway connectivity of over 6,000 km. There are over 380 Idea n U outletsand Idea shops and a network of over 44,000 retailers and deacons.Thanks to the frontline technology — from Nokia, Ericsson, Alcatel andSchlumberger Sema among others — at its command, the company can offer itscustomers extensive coverage, quality service and minimal congestion levels.The company is the fastest growing GSM operator in its area of operation. Thegrowth rate in the last six months has been 85 per cent as against 84 per cent ofall operators in the same area of operation. The company is now cash positive,and is expected be profit positive in the financial year 2004-05.Idea Cellular offers a wide range of cellular services and products. Its post-paidand pre-paid services are supported by a variety of package plans to suit.It was the first company in the country to launch GPRS in November 2002. Itshowcased EDGE (Enhanced Data Rates for GSM Evolution) in Delhi, in July2004. With EDGE, subscribers can enjoy live television with a data downloadrate of over 160 kbps. Idea subscribers will also have a richer experience whilewatching movie previews, multimedia messages with video attachments, web-infotainment, high-speed video downloads, java game downloads and otherInternet-based multi-media experiences on their EDGE enabled mobile phones. 24
  25. 25. It pioneered the concept of Cellular Jockey and offers Music Messaging to allits subscribers. It also launched Global SMS, which allows the users to send andreceive SMS from over 540 networks and 170 countries across the technologyplatforms like GSM, CDMA, TDMA and satellite phones. The companyintroduced Mobile Top-Up (a flexible anytime anywhere recharge service forpre-paid customers) and Say IDEA feature that allows the users to access valueadded services by speaking into their mobiles.It also offers SMS in nine vernacular languages — Hindi, Gujarati, Marathi,Bengali, Telugu, Tamil, Malayalam, Kannada and Punjabi, in addition to Englishto its subscribers.Idea Cellulars antecedents date back to 1995, when the Aditya Birla Group andAT&T (through Birla AT&T Communications – Maharashtra & Gujarat circle)and the Tata Group (through Tata Cellular - Andhra Pradesh circle) set upcellular networks. Both the above company were amongst the first company tocommercially start operation in circles other than metros and achieve financialclosurein Indian Telecom industryIn the year 2000, the historic path-breaking merger of Tata Cellular with BirlaAT&T Communications and the subsequent acquisition of RPG Cellular -(Madhya Pradesh circle) in the year 2001 - helped take the company to aim evenfurther and led to the formation of Birla Tata AT&T Limited.In year 2001,company won fourth cellular license for Delhi metro circle and in year 2002company introduced common brand "!dea" and changed the name to IDEA 25
  26. 26. CellularLimited.Since then, there has been no looking back for IDEA Cellular. The companylaunch Delhi operations in year 2002 and added a record 100,000 subscriberwithin one month.In 2003, the company achieved the largest financial closure in Indian Telecomfor all its circle. In 2004, the company entered into definitive agreement toacquire Escotel Mobile Communications (existing operator in Haryana, Keralaand UP(W)) and Escorts Telecommunications (cellular licensee holderforUP(E)Himachal Pradesh AwardsIdea Cellular M-coupon service bagged the prestigious ‘Golden Peacock awardfor the most innovative product / service’ in February 2003. The Golden Peacockawards, established by the Institute of Directors, is given to companiesdemonstrating sustainable excellence and innovation in the manufacturing andservice sectors, leading to improved performance. • In March 2003, Idea (Madhya Pradesh and Chhattisgarh) was declared the No 1 cellular service in India by the Telecom Regulatory Authority of India (TRAI) for the second consecutive time. 26
  27. 27. • Chosen as the winner of the award, ‘Indira Award for Marketing Excellence’ for being the highest recalled brand in the year 2003 • Ranked second in overall user satisfaction by the Voice & Data – IDC Mobile User’s Satisfaction Survey, October 2003, which was based on parameters like network availability and performance, customer care, value added services, pre-sales and sales effort, and billing. CORE BELIEFS OF IDEAThe company continuously harnesses the power of wireless revolution to provideworld-class products and services. It aims at responding to customer needsproactively by anticipating requirements and providing ready solutions.Idea Cellular draws inspiration from the loyalty of its subscribers to keepraisingthe bar, to shape the future, and to change and enrich the life of each and everymember of its ever-grow family.The company is the fastest growing GSM operator in its area of operation. Thegrowth rate in the last six months has been 85 per cent as against 84 per cent ofall operators in the same area of operation. The company is now cash positive, 27
  28. 28. and is expected be profit positive in the financial year 2004-05.Idea Cellular offers a wide range of cellular services and products. Its post-paidand pre-paid services are supported by a variety of package plans to suit. INTRODUCTION TO THE STUDY UNDERTAKEN  STARTEGY OF AIRTELMagic Hai To Mumkin HaiIn 2002, the leading Indian telecommunications company, Bharti CellularLimited (Bharti) signed the famous cricket player Saurav Ganguly and leadingmovie stars, Madhavan and Kareena Kapoor as endorsers for its brand, AirtelMagic (pre-paid cellular card). Its objective was to create the highest recall forMagic in the pre-paid cellular telephony segment by cashing in on the twobiggest passions of India - movies and cricket. Bharti also changed the taglinefor Magic from You Can Do Magic to Magic Hai To Mumkin Hai (If there is 28
  29. 29. Magic, its possible). The move attracted considerable media attention, as it wasunusual for a company to spend so lavishly to promote a single brand.In October 2002, Bharti launched a television commercial (TVC), featuring ShahRukh Khan (leading actor, already endorsing Magic since a couple of years) andKareena Kapoor. The TVC, developed by one of Indias leading advertisingagencies, Percept Advertising, was the first of the series of four TVCs forMagics new campaign. According to Bharti, the TVCs aimed at attracting youngadults in SEC B and C categories of the Indian market . Commenting on the newdevelopments, Hemant Sachdev (Hemant), Director, Marketing and CorporateCommunications, Bharti Enterprises, said, "The aim is to be relevant to themasses and make all their dreams, hopes and desires come true instantly, at Rs300 per month." PROMOTIONAL STRATEGY-Indian Idol Auditions on Airtel : Close on the heels of exclusive access toKaun Banega Crorepati 2s "fastest finger first", Airtel has added another featherto its cap, by introducing mobile auditions for the eagerly-awaited Indian Idol 2to be aired on Sony Television.Airtel Customers Get Asia Roaming :Airtel a member of Asias largestmobile alliance - Bridge Mobile, has announced the launch of a suite of mobile 29
  30. 30. services that will enable Airtels customers to access a range of services whenroaming overseas on the alliance members network.Airtel Reduces Roaming Tariff :Airtel has announced a reduction in itsroaming rates as a part of its celebration for covering 23 circles across India .Airtel Gets Student-friendly :Airtel is customizing its mobile servicespackages according to what it feels customers want the most. ENDORSEMENT STRATEGY-RAHMAN TUNE CROSSES AIRTEL’S EXCLUSIVITY BARRIER :Cellular serviceprovider AirTel seems to have hit the right note with its new commercial starringmusician A R Rahman. The commercial which is currently on air has a beatwhich also doubles up as a ringtone which is ostensibly available only to AirTelusers. But the interesting part is that the ringtone is being flaunted not just byAirTel customers but by customers of rival service providers like BPL, Orangeand Dolphin as well! 30
  31. 31. The ringtone which is also the jingle for AirTel’s TV commercial, is proving tobe a potent advertising tool for the company. It is not very clear what this meansfor the other cellular operators. Cellular users have been “forwarding” the tune toone 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. “Competition will not do well to adopt a knee jerk reaction and will have tocome out with advertising that is well thought out” explains Mr Kapoor. Heanticipates a situation where the new entrant (AirTel) will continue to be moreaggressive.TENDULKAR. & SHAHRUKH :Both Tendulkar and King Khan already share theframe for soft drinks major PepsiCo India. Tendulkar is not the first cricketer toendorse Bharti’s Airtel brand. Indian captain Saurav Ganguly had done so when Airtellaunched its service in the eastern metropolis of Kolkata2001.Though company executives were mum on the value of the Tendulkar deal, those in theadvertising fraternity peg the signing rate for the three-year deal anywhere between Rs8 crore and Rs 10 crore. Both Sachin and Shah Rukh are two of the most sought afterceleb endorsers in the country, with the former edging out the latter in the celebendorsement race. The Master Blaster’s portfolio includes brands like ColgatePamolive, ESPN-STAR Sports, Pepsi, MRF, Boost, TVS, Palio, Visa, Adiddas andBritannia. The leading brands endorsed by Khan include Hyundai, Pepsi, Airtel, Tag 31
  32. 32. Huer, Clinic All Clear, Bagpiper and Videocon, amongothers. According to companyexecutives, the idea of roping in Tendulkar is in line with the group’s strategy toconnect 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,” says asenior company executive. Bharti plans to launch a multimedia campaign targetting itsservice .SCHEMESSMS packages- airtel provides sms package in which company deducts 30 rs rent andother charges and offer 2000 sms free in a month.Airtel Promotes Performing ArtsAirtel has announced the launch of "Airtel Expressions", a platform to promote andcelebrate the various forms of expressions through the medium of performing arts inDelhi. Airtel Launches BlackBerry 7100g 32
  33. 33. Airtel and Research In Motion (RIM) have introduced the BlackBerry 7100g businessphone in the country.DIALER tones- airtel also provides the dialer tones to its customers , now any caller canhear songs on your mobile phones , the company deducts 30 rs rent per month and callcharges to apply this tone is rs @6/min. INTRODUCTION OF CONSUMER BEHAVIUORConsumer behavior is the study of how individuals make decisions to spend theirAvailable resources time, money , effort on consumption related items it includesthe study of what to buy , where to buy , how to buy, how often they use. there isa question arises why we study the consumer behavior and perception towards abrandJust as consumer or marketer are diverse, the preseason why the consumer studyare also diverse , as consumer are , we benefit from insights into our ownconsumption related decision what we buy , where we buy etc 33
  34. 34. Ian doing my research on consumer behaviors towards the mobile services, Ihave to take into mind why consumer choose that service, how regularly he isusing that servicesIn addition to the studying consumer uses and post purchases evaluation of theproduct they buy consumer researchers are also interested in how how individualdispose of their product are they satisfied with their mobile services or not.The term consumer behavior is often use to describe two different kinds ofconsumer entities the personal consumer and organizational consumer. thepersonal consumer includes the single person and the organizational consumerinclude the profit and non profit entities. So in cellular services consumerbehavior of the people is very necessary , whether they purchase cellularconnection on the basis of services, coverage , brand name or lastly customerattendance . so iam doing my research between two cellular brands AIRTEL andIDEA and to know the consumer perception towards this cellular brands. 34
  35. 35. Marketing strategy of idea1) jodi kamal ki- idea cellular launches a programme on star plus JODI KAMAL KI. In which they advertise their products through this serial. Which comes at 9 p.m on every Saturday. 35
  36. 36. 2) Charity match sponsored by idea played between Bollywood and England at Mumbaiin which bollywood wins the match and amount goes to people suffering from cancer.3)Free outgoing calls for every 2 minutes allover India, conditions apply on that.3) Chemist schemes- available to all chemist available in haryana- in which the subscriber has to pay rent rs 100 pSper month the call charges will be rs 50 paise to all mobile and free sms 50 in month.4) SUMO WRESTLER USED- the company uses sumo in their ad, which says prepaid ho to idea jaisa. Which means talk more pay less.5) ONE INDIA ONE IDEA- in which you can call,sms,std at the rate of rs 1.but the company deduct 1.25paise per day.6) SMS package- in this the customer has to deduct rs 15 and company gives 1000 sms free for a month to customers. 36
  37. 37. 7) value-added services such as vernacular SMS (in 9 languages), games on the mobile, a large covered area for pre-paid roaming,8) Sending a Mail to any e-mail ID is so much easier. Just follow the simple steps and send a mail to friend or a colleauge anywhere in the world from wherever you are.9) You can read, compose, delete and reply to your Yahoo! e-mails10) RING TONE SERVICES- idea provides ring tone service to its customers , the company deduct rs 30 as a monthly rental. And you can apply any song as your ring tones.11) HARYANA- Idea Cellular Ltd has announced the Idea Girls Best Friend offer, an opportunity to own a free dazzling real diamond pendant with every new post-paid connectionon a plan of Rs 150 and above. The offer can also be booked through all Idea and U showrooms. The existing post-paid customers can also avail themselves of the offer. 37
  38. 38. 12) Yahoodating - Looking for a bit of romance in your life. Well, with Yahoo dating service you may find the perfect partner you had always been looking for. To Register type Date Reg ID Password Age Sex Location & sms at 8243.13) YahooMail - Sending a Mail to any e-mail ID is so much easier. Just follow the simple steps and send a mail to friend or a colleauge anywhere in the world from wherever you are. You can read, compose, delete and reply to your Yahoo! e-mail.HaryanaIdea Cellular — the three way joint venture between Tata, Birla and US-based AT&T —was called Birla Tata AT&T before being renamed in May 2002. It was set up in January2001 following the merger of Tata Cellular and Birla AT&T Communications and isIndias leading cellular services provider.BTNL provides fixed-line services to approximately 114,400 customers as of March 31,2005 under the brand Airtel. BSNL also operates a fixed-line telephone servicewithin the same geographical area. 38
  39. 39. 39
  40. 40. IDEA_CELLULAR SERVICESPOPULATION1As on March 01, 2006 18 million MOBILE - SUBSCRIBER BASE2As on March 31, 2006 928,38 FIXED LINE DELs3 As on March 31, 2006 983,89 VEHICLES4As on March 31,1996 1,215,542 STATEMENT OF OBJECTIVEMain objective 40
  41. 41. The MAIN objective of my project report is to study the marketing,strategy ofAIRTEL and idea Cellular service panipat city and its effect on mobile usersexisting and who are going to use mobile service in future. In other words, myaim is to study theSub objective  TO know the customer perception  To know which is the best  To know the brand loyality RESEARCH METHODOLOGYThis reseach presented has an exploratory type reseach plot . where I gatheredresponses for those aspects in the market. Which were not so clear .In myresearch I stsarted to take responses personally by visiting to the customers and 41
  42. 42. registered their response. I want to known the customer perception towards theAIRTEL and IDEA. In my research I take 200 sample size. Whom I personallyregistered their responses for each and every aspect related to the customersperception.The sample size for Customer was 150 where the Customers responses havebeen collected from all the possible races and areas which were in my reachwhile working on this research. The Customer responses registered here havebeen collected from different Hangout Zones like restaurants , friends to get theyoung responses. For some mature responses, I have approached some officialsso that some professional responses are collected. I have also contacted someShop Keepers and . Thus I have gathered the customer responses from all majorsections in n Society who are probably using an cellular service. The importanceof the project lies in the fact that we are interested to find Out the data which isnot so evident in the market because its related to perception of the customersand this can be only analyzed when we personally meet the customers .Data is collected from both the Primary sources i.e. questionnaire and alsofrom Secondary sources.Primary sources: The primary source of data collection is throughquestionnaire. The questionnaires are distributed among 200 peoples and theirview is recorded and used in analyzing the data 42
  43. 43. Secondary sources :The secondary sources includes online sites, newspapersand templates from AIRTEL and IDEAdistributions centersSAMPLE SIZE- 200RESEARCH DESIGN – explanatory reserch LIMITATIONS  The responses collected are perception based so the nature variant can be biasing factor.  I was not able to cover the whole panipat city. 43
  44. 44.  The time for the research was limited.  Money also become the constraint for me . ANALYSIS AND INTERPRETATION. Which connection you are using at present? 44
  45. 45. CLIENT USAGE45% Airtel 55% idea 45
  46. 46. CONCLUSION• Ther are total 55% persons which uses AIRTEL.• And 45 % of the persons are using idea due to its good schemes.• So, the conclusion is that majority of people are using airtel services because of its more benefits than idea. 46
  47. 47. ANALYSIS. Due to which reason you are availing mobile services? 40 40 35 30 30 25 20 20 15 No. 10 10 5 0 Status Office Family Other use 47
  48. 48. CONCLUSIONIn this graph we conclude that 40% people uses mobile for their status symbol.,the 30% people uses mobiles for their office jobs, then the remaining 10 % and20 % people uses mobiles for family or for the other purposes.So, most of the persons takes mobile in them for their status symbolsand it isalso very useful in jobs , so many people takes mobile to easily contact with theiremployers.And lastly some people retain mobiles for many purposes other than that, it canbe for family , friends etc. 48
  49. 49. ANALYSISDo you think that advertising has changed your perception forbrand? 60 55 50 40 30 30 No. 20 15 10 0 Yes No Cant say 49
  50. 50. CONCLUSIONWe conclude the conclusion from the graph that • 55% of the peoples say that their perception changes due to the effect of advertising. • 30 % of the people say their perception about the cellular doesn’t changes due to the advertising effectiveness of the company • 15% percent of peop[le cant say about this. 50
  51. 51. ANALYSISHow many are using Airtel and IDEA in Profession/ServiceDetails?30 282520 20 Service15 Business Students 12 Others10 10 10 8 7 5 5 0 Airtel User IDEA 51
  52. 52. CONCLUSION• AIRTEL USERS- from the above graph it is concluded that 12% uses for service8% person uses airtel for the business puposes , 28 % students uses in colleges and in school leveland lastly 7 % people uses for other purposes• IDEA USERS- 10 % people uses idea cellular in services , business man uses 20% of services due to many schemes offered by idea remaining 10% are used by students and 5% are used for others purposes. 52
  53. 53. ANALYSISAge Group users ? Age Group 50 41 40 30 24 23 20 No. 12 10 0 Up to 20 21 to 40 41 to 60 Above No. 24 41 23 12 53
  54. 54. CONCLUSION• BETWEEN 0-20 AGE GROUP- from the graph we conclude that 24 % of the people avail services of mobiles.• BETWEEN 21-40 AGE GROUP- in this 41% of the people uses mobile services.• BETWEEN 41-60AGE GROUP- in this 23 % of people uses service of mobile phones in INDIA.• ABOVE that age group only 12 % of people uses services. ANALYSIS 54
  55. 55. what is the sex composition using the mobile phones? SEX COMPOSITION Sex 70 65 60 50 40 35 % No. 30 20 10 0 Male Female 55
  56. 56. CONCLUSION• 65 % of the respondent are of the category male so we can say mobiles are more popular among the male as youth are more attractive toward the mobiles• 35% of the respondent belong to the female class as today girls are also in the jobs .• the above we can say that what ever the sex is mobile is useful to every of generation ANALYSIS 56
  57. 57. Give rank to the following facilities while you are going to availthe mobile service? 57
  58. 58. Others Coverage Roaming Others Students SMS Business Talk Time ServiceAvailability 0 5 10 15 58
  59. 59. Conclusion• TALKTIME-7 % of service men give preference to the talk time,9 % business man uses for talk time and the remaining 6% of students prefer the talktimes in mobile.• SMS-3% of business man use service of sms,12% of students uses sms and remaining 4% service man uses that.• Roaming-3% of students and service man give importance to the roaming facality.and remaining 8% of business man give imp to roaming.• COVERAGE-2% of students and business man takes coverage in teir mind remaining 5 % of service man takes in his mind of coverage of the cellular service 59
  60. 60. ANALYSIS Do you think AIRTEL company is number 1 in INDIAthanI DEA? YES NO 60
  61. 61. CONCLUSION• The conclusion from the above graph is that 72 % of respondent say yes that air tel is the number one brand in all respect• The remaining 28 % of the people says that the idea cellular is the no 1 brand in India in all respect• From above it concludes that AIRTEL leads way than the IDEA.in all respect in INDIA. 61
  62. 62. ANALYSISIncome Group (Monthly Income in Thousand Rs.) None 34 Above 50 8 20 to 50 20 No. 5 to 20 28 Upto 5 10 0 10 20 30 40 62
  63. 63. Airtel idea Consumer response for a better brand between AIRTELand IDEA 14 12 consu merrs responses respon 10 ses 8some personal 6 consumerdisappointment 4with IDEA , they 2prefer AIRTEL 0 IDEA AIRTELfor following Brands in comparisonreasons.For the remaining responses the reasons are as follows: 63
  64. 64. REASONS NUMBER OF RESPONSES1 AIRTEL is an established brand name 092 SCHEMES are given in time 043 network coverage is more. 054 product is better from idea 095 customer care attended in time 0311) People’s first choice of cellular service when they want touse mobile phone 64
  65. 65. AIRTEL 45% HUTCH 30% IDEA 8%RELIANCE 10% TATA INDICOM 5% OTHERS 2% AIRTEL HUTCH TATA INDICOM RELIANCE IDEA OTHERS CONCLUSION 65
  66. 66. From the above grapgh we conclude that 45 % of people like to avbil the services ofAIRTEl first time, remainng 30% of people like HUTCH services to avail, only 8% ofpeople LIKe IDEA because of the range problem. 10 % of people like reliance because ofthe brand nameor low call rates. 5 % of people like tat indicom because of new mobilepeople hasve less faith in that , but TATA has also brand name and offereing manybenefits . only 2 5 of people like other services like LANDLINE services, they have nofaith in mobiles. ANALYSIS Type of advertisement mostly like by people in AIRTEL and IDEA is 66
  67. 67. AIRTEL IDEA a) Audio a) Audiob) visual B) visual 70 60 50 40 airtel 30 idea 20 10 0 audio visual audio visual CONCLUSION 67
  68. 68. • AUDIO- 10% of people says that they are effected by airtels audio adds, but 5 % of people are effected by ideas audio adds • VISUAL- 35 % of idea adds visual has effect on consumers and airtels only 20% visual add has effect on tahat. • AUDIO VISUAl- 70 % of people are well aware of adds come on television , but in case of idea only60 % people has their effect causes due to adds in television. FINDINGSThe conclusion of my study is that AIRTEL’s Advertising has a major impact itsusers. People like its schemes very much .AIRTEL had created a very good 68
  69. 69. image on the mind of the new users of cellular service. But in idea there is verylow advertisuing effectiveness on the consunmers.. airtel has adopted a verygood strategy by providing a new connection with NOKIA who is market leaderin mobile set, many new users buy Nokia sets and they get a free connection ofAIRTEL. CONCLUSION However AIRTEL is a established and IDEA is a growing name in the field of mobile services still in a very short period of time reliance has 69
  70. 70. captured a huge market share because of handset financing and cheap facilities such as SMS, call rate etc. In future, IDEA will surely give a hard competition to AIRTEL as well as other mobile service companies. In the same time, AIRTEL is also habitual in adapting itself according to the market situation. Hence we can say that both AIRTEL as well as IDEA will prove to be a benchmark for others in future. RECOMMENDATIONSAirtel: 70
  71. 71. 1. Airtel should finance the handset like reliance but handset restriction should not be there. 2. Advertisement should be meaningful and able to persuade the customer. 3. Sale promotion technique should be used to survive in the market and to increase the sale 4. Insurance should be provided.Idea: 1. Mostly, customers have regular habit of changing their handsets, which is not possible in case of reliance. So such kind of restriction should not be there. 2. Advertisement should be meaningful and able to persuade the customer. BIBLIOGRAPHY Books 71
  72. 72. Kotler, Philip : Marketing ManagementSchiffiman, Leon. G. : Consumer BehaviourKothari, C.R. : Research MethodologyMagazines and Newspapers:The Economics TimesBusiness IndiaBusiness WorldWebsiteswww.ideaInfo.comwww.airtelworld.com 72

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