Bharti Airtel


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Bharti Airtel

  1. 1. A Project Report onBharti Airtel LimitedSubmitted to Submitted byDr. Shipra Khanna Deep Jyoti Das&Jaspreet Singh
  2. 2. AcknowledgementWe are very thankful to everyone who all supported us, for we have completed ourproject effectively and moreover on time. We are equally grateful to our teacher Dr.Shipra Khanna. She gave us moral support and guided us in different mattersregarding the topic. She had been very kind and patient while suggesting us the outlinesof this project and correcting our doubts. We thank her for her overall supports.We would like to thank our dean Dr. Sandhir Sharma who helped us a lot in gatheringdifferent information, collecting data from time to time in making this project despite oftheir busy schedules.Last but not the least; we thank our coordinator Ms. Namita Bhandari. She gave usdifferent ideas in making this project unique.And we would also like to thank our Family; they have guided us from time to time inmaking this project.We would like to thank our Friends and also the person who have binded this report.Deep Jyoti Das&Jaspreet
  3. 3. Index1. Introduction 12. History 83. Organizational Structure 204. SWOT Analysis 225. Financial Status 266. Marketing Strategy 317. Main Competent & Marketing Strategy of There Co. 348. Suggestion & Recommendation 369. References 37
  4. 4. IntroductionBharti Airtel Limited, commonly known as Airtel, is an Indian telecommunicationscompany that operates in 20 countries across South Asia, Africa and the ChannelIslands. It operates a GSM network in all countries, providing 2G or 3G servicesdepending upon the country of operation. Airtel is the fifth largest telecom operator inthe world with about 230.8 million subscribers across 19 countries at the end of June2011. It is the largest cellular service provider in India, with over 171.85 millionsubscribers as of August 2011. Airtel is the 3rd largest in-country mobile operator bysubscriber base, behind China Mobile and China Unicom. It also offers fixed lineservices and broadband services. It offers its telecom services under the Airtel brandand is headed by Sunil Bharti Mittal.Bharti Airtel is the first Indian telecom service provider to achieve this Cisco GoldCertification. To earn Gold Certification, Bharti Airtel had to meet rigorous standards fornetworking competency, service, support and customer satisfaction set forth by Cisco.The company also provides land-line telephone services and broadband Internet access(DSL) in over 96 cities in India. It also acts as a carrier for national and internationallong distance communication services. The company has a submarine cable landingstation at Chennai, which connects the submarine cable connecting Chennai andSingapore.The company is structured into four strategic business units - Mobile, Telemedia,Enterprise and Digital TV. The mobile business offers services in 18 countries acrossthe Indian Subcontinent and Africa. The Telemedia business provides broadband, IPTVand telephone services in 89 Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The Enterprise business provides end-to-end telecomsolutions to corporate customers and national and international long distance servicesto telcos.It is known for being the first mobile phone company in the world to outsourceeverything except marketing and sales and finance. Its network (base stations,microwave links, etc.) are maintained by Ericsson, Nokia Siemens Network and Huawei,business support by IBM and transmission towers by another company (Bharti InfratelLtd. in India). Ericsson agreed for the first time, to be paid by the minute for installationand maintenance of their equipment rather than being paid up front. This enabled thecompany to provide pan-India phone call rates of Rs. 1/minute (U$0.02/minute). Callrates have come down much further. During the last financial year [2009–10], Bharti hasroped in a strategic partner Alcatel-Lucent to manage the network infrastructure for theTelemedia Business.
  5. 5. IndiaMobileAirtel has nationwide presence and is the market leader with a market share of almostcompletely (as of May 2010). It is 6th most valued brand according to an annual surveyconducted by Brand Finance and The Economic Times in 2010.On 19 October 2004, Airtel announced the launch of a BlackBerry Wireless Solution inIndia. The launch is a result of a tie-up between Bharti Tele-Ventures Limitedand Research In Motion (RIM).The Apple iPhone 3G was rolled out in India on 22 August 2008 by Airtel & Vodafone.Both the cellular service providers rolled out their Apple iPhone 3GS in the first quarterof 2010. However, high prices and contract bonds discouraged consumers and it wasnot as successful for both the service providers as much as the iPhone is successful inother markets of the world. The Apple iPhone 4 was introduced on 27 May 2011 byAirtel & Aircel.
  6. 6. 3GOn 18 May 2010, 3G spectrum auction was completed and Airtel will have to pay theIndian government 12,295 crore (US$2.74 billion) for spectrum in 13 circles, the mostamount spent by an operator in this auction. Airtel won 3G licences in 13 telecom circlesof India: Delhi, Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (east),Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East, Jammu &Kashmir. Airtel also operates 3G services in Maharastra, Goa, Kanpur and Kolkatathrough an agreement with Vodafone and in Gujarat through an agreement with Idea.This gives Airtel a 3G presence in 15 out of 22 circles in India.On 20 September 2010, Bharti Airtel said that it has given contracts to EricssonIndia, Nokia Siemens Networks (NSN) and Huawei Technologies to set up infrastructurefor providing 3G services in the country. These vendors will plan, design, deploy andmaintain 3G-HSPA (third generation, high speed packet access) networks in 13 telecomcircles where the company has won 3G licences. While Bharti Airtel has awardednetwork contracts for seven 3G circles to Ericsson India, NSN would manage networksin three circles. Chinese telecom equipment vendor Huawei Technologies has beenintroduced as the third partner for three circles.On 24 January 2011, Airtel launched 3G services in Bangalore, Karnataka – its largestcircle by revenue. With this launch, Airtel became the third private operator (fifth overall)to launch its 3G services in the country following Reliance Communications and TataDocomo. On 27 January 2011, Airtel launched 3G in Chennai and Coimbatore.On 27 July 2011 Airtel launched 3G in 3 Major Cities in Kerala (Trivandrum, Cochin &Calicut) with 3G network sharing agreement between idea.On 3 August 2011, Airtel launched 3G in Maharashtra & Goa with 3G network sharingagreement between idea. Airtel plans to cover 1,500 cities across 13 circles by the endof March 2012. The company, which has 3G licences for 13 circles, is also in talks withother service providers to roll out the services in the remaining 10 circles as part of itsroaming offerings. Airtel had about 3 million 3G subscribers as of May 2011.
  7. 7. 4GOn 19 May 2010, the broadband wireless access (BWA) or 4G spectrum auction inIndia ended. Airtel paid 3314.36 crores for spectrum in 4 circles. The circles it willprovide 4G in are Maharashtra, Karnataka, Punjab and Kolkata.According to Cellular Operators Association of India (COAI) director general Rajan S.Mathews, Airtel is expected to launch 4G services in first qaurter of 2012. They areexpected to use LTE technology.
  8. 8. HistoryBharti Tele-Ventures was incorporated on July 7, 1995 as a company with limitedliability under the Companies Act, for promoting telecommunications services. BhartiTele-Ventures received certificate for commencement of business on January 18, 1996.The Company was initially formed as a wholly-owned subsidiary of Bharti TelecomLimited. The chronology of events since Bharti Tele-Ventures was incorporated in 1995is as follows:Calendar year & Events1995Bharti Cellular launched cellular services AirTel in Delhi1996STET International Netherlands NV, or STET, a company promoted by TelecomItalia, Italy acquired a 20% equity interest in Bharti Tele-VenturesBharti Telenet launched cellular services in Himachal Pradesh1997British Telecom acquired a 21.05% equity interest in Bharti CellularBharti Telenet obtained a license for providing fixed-line services in MadhyaPradesh circleBharti Telecom and British Telecom formed a 51%: 49% joint venture, Bharti BT,for providing VSAT services1998Bharti Telecom and British Telecom formed a 51% : 49% joint venture, Bharti BTInternet for providing Internet servicesFirst Indian private fixed-line services launched in Indore in the Madhya Pradeshcircle on June 4, 1998 by Bharti Telenet thereby ending fixed-line servicesmonopoly of DoT (now BSNL)1999Warburg Pincus (through its investment company Brentwood InvestmentHoldings Limited) acquired a 19.05% equity interest in Bharti Tele-VenturesBharti Tele-Ventures (by acquiring a 63.45% equity interest in SC CellularHoldings) acquired an effective 32.36% equity interest in Bharti Mobile (formerlyJT Mobiles), the cellular services provider in Karnataka and Andhra PradeshcirclesNew York Life Insurance Fund, or NYLIF, acquired a 3% equity interest in BhartiCellular
  9. 9. 2000Bharti Tele-Ventures acquired an effective equity interest of 40.5% in BhartiMobinet (formerly Skycell Communications), the cellular services provider inChennaiBharti Tele-Ventures acquired a 30.2% equity interest of Telecom Italia in BhartiTelenet and 18.8% from Bharti Telecom thereby making Bharti Telenet a 100%subsidiary of Bharti Tele-VenturesSingTel (through its investment company Pastel Limited) acquired STETs 15.3%equity interest in Bharti Tele-VenturesBharti Tele-Ventures acquired an additional effective 41.64% equity interest inBharti Mobile (by acquiring the remaining 36.55% equity interest in SC Cellular)resulting in Bharti Tele-Ventures holding an effective 74% equity interest in BhartiMobile.2001Bharti Tele-Ventures acquired NYLIFs 3% equity interest in Bharti CellularBharti Telesonic entered into a joint venture, Bharti Aquanet, with SingTel forestablishing a submarine cable landing station at ChennaiBharti Tele-Ventures issued additional equity for approximately US$ 481.30million to SingTel, Warburg Pincus, AIF group, IFC, NYLIF, and Seejay Cellularand Bharti TelecomBharti Cellular acquired a 100% equity interest in Bharti Mobitel (formerly SpiceCell), the cellular services provider in KolkataBharti Tele-Ventures acquired 85% and 15% in Bharti Telespatial from BhartiTelecom and Intel, respectivelyBharti Tele-Ventures acquired a 44% equity interest in Bharti Cellular from BritishTelecom, thereby making Bharti Cellular its 100% subsidiaryBharti Tele-Ventures acquired an additional 49% equity interest in Bharti Mobinetfrom Millicom International and BellSouth International, thereby owning 89.5%equity interest in Bharti Mobinet, which was further increased to 95.3% followingan issuance of additional equity shares by way of rights issuePunjab license restored to Bharti Mobile by the DoT and migration to NTP - 1999acceptedBharti Cellular entered into license agreements to provide cellular services ineight new circles following the fourth operator cellular license bidding processBharti Telenet entered into license agreements to provide fixed-line services inthe Haryana, Delhi, Tamil Nadu and Karnataka circlesBharti Telesonic entered into a license agreement with the DoT to providenational long distance services across IndiaBharti Aquanet, Bharti Telesonic and Bharti Cellular entered into licenseagreements with the DoT to provide ISP services in IndiaBharti Telesonic launched national long distance services under the brand nameof IndiaOneBharti Telenet launched fixed line services in Haryana under the brand name ofTouchTel.
  10. 10. 2002Comes out with issue of 18.53 crore equity shares through book building routewith a floor price of Rs 45 per share, received bid for 18.55 crore shares.Through the issue, it becomes the first company in India to come out with 100%book building issueIssue price fixed at Rs 45 per share, floor price fixed by the company. Raises Rs834 croreShares listed on BSE, NSE and DSE, opens at 11% premium to its issue priceof Rs 45Enters into a 5-year agreement with Escotel and ETL of the Escorts group tocontract leased line connectivity for its cellular operationsMr. Ravi Akhoury ceases to be Director of Bharti TeleDoT grants ILD Telephony License to Bharti Telesonic, subsidiary of thecompanySigns MoU with Telia AB to buy out their 26% stake in Bharti MobileTies up with SSC (Secondary School Certification) Board, Hyderabad, whereBharti will announce SSC results to its customers on their mobile phonesICICI Bank ties up with Bharti for pre-paid mobile cards via ATMsBharti forays into Mumbai with offersAlpine International Ltd. and ELM International Ltd. acquire shares of Bharti Tele-VenturesSunil Mittal, Chairman & Managing Director of the company, bags Businessmanof the year award by Business India2003Airtel breaks interconnectivity with Tata Teleservices in Andhra Pradesh CircleCompany accorded its approval for amalgamation of its subsidiary companiesviz: Bharti Telenet Ltd, Bharti Telesonic Ltd, Bharti Broadband Networks Ltd andBharti Comtel Ltd through scheme of Amalgamation. The merged entity would berenamed as Bharti Infotel LtdAir Tel launches Local direct dialling facility in Chennai circleMobilises 5 m long term foreign currency borrowings for expansion of cellularoperationsBharti Cellular unveils CareTouch serviceBharti Groups cellular brand Airtel has unveiled free multimedia messagingservices (MMS) for its customers. The company has also rolled out pan-IndiaGPRS (General Packet Radio Services) for its corporate subscribersLaunches its `IndiaOne MeetXpress audio-conferencing servicePunjab, Haryana get free incoming calls from AirtelAirTel provides SMS facilities to hearing impaired in ChennaiGoa, Maharashtra gets voice portal services by Bharti CellularLaunches free additional connection to its new subscribers in New Delhi
  11. 11. Mr Sin Hang Boon and Mr Wong Hung Khim have resigned from the Board ofDirectors of Bharti Tele Ventures Ltd with effect from February 27, 2003.Airtel provides SMS cricket updatesBharti Mobinet Ltd, the Bharti group company that provides the AirTel mobileservice in Chennai, today launched its GPRS (General Packet Radio Service)network and an MMS (multi-media messaging) on the GPRS platformAirTel unveils new ring tones for karnataka cellular marketAirTel Subscribers exceed 3 million markAirTel unveils RAD systemMr P M Sinha resigns from the Board of Directors of the Company with effectfrom March 31, 2003.Bharti TeleVentures announces the completion of merger with Bharti MobitelBharti Mobitel Ltd. merged with Bharti Cellular Ltd.AirTel reintroduces Mobile 2 Mobile offer for Karnataka customersAirTel, Touchtel jointly offer freeTouchtel land line for post-paid Airtel connectionAirTel rolls out voice mail service for pre-paid customersAirTel unveils new scheme for pre-paid customers giving away free talk timeworth Rs 10 croreAirtel surpasses 4 lakh subscriber base in KarnatakaBharti announces new tariff plan AirTel 012Offers 0-1-2, a new cellular package for the customers, which means zerocharges on incoming calls, Re 1 on mobile-to-mobile outgoing calls, Rs 2 onmobile-to-mobile STD callsRolls out Airtel messenger serviceAirTel offers bundled handset, connection package for Rs 5715Airtel slashes SMS rates to 60 paise; excludes Delhi and MumbaiBharti cellular, wholly owned subsidiary of Bharti Tele-Ventures, increases itsstake to 100% in Bharti MobileIinks distribution pact with Hathway Cable. With this alliance, Bharti is said to bethe first telecom firm to step into television distribution servicesSix cell operators move over from Bharti to VSNLAirtel augments cellular coverage in TN by including Arcot & Walajapet in itsnetworkAirtel ties up with Coke in Chennai to sell its Magic prepaid cardsAirTel embarks on network expansion in HyderabadAirtel unveils IndiaOne Long Distance Calling CardAirTel introduces unified tariff package in TN, ChennaiAirtel becomes front runner in Karnatakas mobile services marketBharti Tele launches Always on service to its subscribersSBI, AirTel announce EMI offer at Rs 299Bharti and MTV join hands to launch new SIM cardAirTel unveils new post-paid scheme at zero rental
  12. 12. AirTel launches `Happy Plan in APAirtel emerges as the highest selling pre-paid cardAirtel join hands with Alcatel & Videocon to launch new schemeAirTel service provider touches 5 lakh customers in PunjabAirtel offers 5 new services for its customers in MumbaiBharti launches first dual band network in DelhiGets 14th place among top 25 Cos in IndiaBharti Mobile crosses 4 lakh mobile subscribers in APAirtel holds top position in terms of dealer penetrationProf. V S Raju has been inducted on the Board of Directors of the Company.Touchtel launches SMS service in fixed line phones in Karnal, PanipatAitTel unveils special offers in KeralaAirTel launches InnoWest for the western regionBharti Tele-Ventures enters into an agreement with Telesystem (Mauritius) Pvt.LtdAirtel slashes out going sms price to 30psAirTel on December 16, 2003 announced the launch of expense tracker service,which provides customers the option of tracking their day-to-day expenses on adaily or monthly basis. To avail of this service, the customer should registerhimself by sending EXP REG Your mail ID{gt} to 3020. This service will allow auser to track expenses, while on the move by sending an SMS. Each SMS sentto 3020 would cost Rs 3.AirTel introduces MTV Club Card in Chennai2004Bharti unveils new card for Mecca piligrimsAirTel enrolls 50,000 customers in its mobile service in 60 daysLaunches WAP enabled portal Service in KeralaBharti Cellulars AirTel has extended its mobile connectivity to Karaikkal, Nagur,Mannargudi and Kovilpalayam in Tamil Nadu circle.Airtel customer base touches new high of 5 lakh mark in Andhra PradeshMobile service provider AirTel is launching its first ever MMS (Multi Mediaservice) downloads in Tamil. The launch of this service has been timed tocoincide with Pongal.AirTel tie up with MAA TVAirtel launches Rs 50 pre-paids rechargeBharti Tele-Ventures enters into a three year service agreement with EricssonBharti Tele-Ventures (BTVL) has signed and received unified access servicelicence to provide GSM services in five circles including Uttar Pradesh (East),West Bengal & Andaman Nicobar, Orissa, Bihar and Jammu & Kashmir. Thelicence has been granted to Bharti Cellular Ltd (BCL), the cellular arm andsubsidiary of BTVL.
  13. 13. Airtel announces the signing of the first-ever bilateral roaming agreementbetween an Indian mobile service provider and its counterpart in Pakistan. Thisfacility will be available to pre-paid as well as post-paid customers. AirTelsroaming agreement is with Mobilink, the only GSM cellular service provider inPakistanAcquires switching systems from Tekelec that will give a technological edge tothe companyBharti Tele-Ventures Ltd signed an information technology outsourcing deal withinfotech major IBM, estimated to be in the range of 0-750 million for a ten-yearperiod.Jayant Khosla, new chief executive officer, MumbaiSigns MoU to join the South East Asia - Middle East - Western Europe 4 (SEA-ME-WE-4) consortium along with 15 other global telecom operators.Bharti Tele-Ventures has struck a deal with Shyam Telecom to buy out thelatters 67.5 per cent stake in cellular services company Hexacom for Rs 430crore.Bharti Tele garners 0 m via FCCBsSamsung India Electronics Limited has tied up with cellular operator Bharti forbundling its mobile handsets with a connection.The Bharti group finalised a Rs 500-crore deal to share its national long-distance(STD) network with VSNL in a first-of-its-kind accord between two top telecomservice providers in a bid to optimise capacities in the NLD segment.Internet gateway and services provider, Videsh Sanchar Nigam Ltd. (VSNL) hassigned a Right to Use (RoU) agreement to deploy mobile telephony major, BhartiTele-Ventures existing National Long Distance (NLD) backbone.Airtel offers talktime transfer serviceAirtel has announced money-back guarantee offer in case of call drop or poornetwork experience for its subscribersBharti launches 2-in-1 cardAirtel launched two-way international roaming and GPRS for prepaid customersin the Maharshtra and Goa circlesIndias leading cellular company Bharti Tele-Ventures has bagged the AsianMobileNews operator of the year award in India and the subcontinentBharti Tele-Ventures Ltd has awarded a million equipment contract to Swedishtelecoms company EricssonBharti Televentures announced formation of a new strategic business unit to offervarious telecom and IT services through a single contactBharti Televentures unveiled a mobile portal featuring sports, entertainment andnews among othersAirtel ties up with Micro Tech to set up Mcops vehicle security systemBharti Tele-Venture on July 19 launched ring back tone service which is apersonalized mobile music service where the caller hears songs and other soundclips instead of the traditional switchboard ring-ring tone
  14. 14. Airtel, a private telecom services provider, has commissioned its first 24x7customer service centre in Andhra PradeshAirtel unveils Rs 199 pre paid cardAirTel join hands with NMIMS to offer executive MBA programmeAirTel introduces new scheme for hearing impaired in Maharashtra & GoaAirTel inks pact with JP MobileRolls out Enhanced Data Rate for Global Evolution (EDGE) network in Pune onSeptember 9, 2004, Ties up with Nokia for sale of Nokia 6230, an EDGE-enabledhandset.AirTel unveils first virtual calling cards in IndiaBTVL rolls out EDGE services in BangaloreAirtel rolls out Full Talktime Advantage cardAirtel rolls out wi-fi services in MumbaiBTVL launches new Airtel Broadband Friendly OfferAirtel launches GPRS services for pre-paid customersAirtel partners with ITPO to set up Wi-Fi network in DelhiAirtel launches EDGE services and a new pre-paid plan for ChennaiAirtel introduces LAS in Karnataka2005Airtel launches video services for its GPRS customers on February 22, 2005Airtel unveils new TV ad featuring Sachin, SharukhBharti Tele-Ventures launches telecom network in Andaman & NicobarBTVL unveil fixed line, broadband servicesBharti inks 5-m deal with Nokia for rural network expansionBharti Tele Ventures Ltd has announced that Airtel, ICICI Bank & VISA havejoined hands to launch mChq - a revolutionary new service - a credit card on themobile phoneBharti Tele Ventures - Airtel introduces BlackBerry Connect in IndiaBharti Tele Ventures announces agreement with VodafoneAirtel unveils free flight offerAirtel unveils starter packBharti Tele-Ventures launches under sea cable system2006Airtel unveils Re 1 STD plansAirtel launches NetXpert.Airtel launches Post2Pre recharging service on April 04,2006.Airtel sets up customer centreMobile service provider Airtel today announced the launch of `Save My PhoneContact service for its pre-paid and post-paid customers in DelhiBharti Tele Ventures bags Wireless Service Provider of the Year & CompetitiveService Provider of the Year awards
  15. 15. Sunil Mittal bags CEO of the Year awardCellebrum join hands with AirtelAirtel Mega unveiled in CoimbatoreAirtel joins hand with MicrosoftBharti Airtel Ltd has informed that Microsoft and the Company announced astrategic partnership that will offer a range of software and services for small andmedium businesses (SMBs) in India.Bharti Airtel Ltd on Nov 8, announced a first-of-its-kind alliance with the AdaniGroup for establishing an end-to-end modern telecommunication networkinfrastructure for the latters multi-sector special economic zone (SEZ), locatednear Mundra Port in Kutch district of Gujarat.2007Bharti Airtel, telecom major, has come out with a slew of initiatives includingbuying out SingTels 50 per cent stake in joint venture under sea cable companyNetwork i2i for 0 million.Bharti Airtel on Feb 11, has been awarded QCI-DL Shah National Award onEconomics of Quality.Bharti Airtel Ltd has announced the following changes in the operationalleadership structure and roles in the Company effective April 01, 2007.Bharti Airtel Ltd on April 01, 2007, has announced the reduction in InternationalLong Distance Tariffs (ISD) for all its mobile customers in India.Airtel signs agreement with HTC for touch screen mobile.2008Nokia Siemens Networks on Jan 3 declared that it has been awarded a multimillion euro contract from Bharti Airtel Ltd for deployment of a single interactivevoice response (IVR) platform across 23 circles. The three-year turnkey contractcomprises designing, planning, systems integration and optimisation services toraise overall customer experience. The new IVR solution will enable Airtel todeliver services such as voice SMS, televoting, call management services, callerring back tone and voice portal on a faster time-to-market basis and, therefore,reduce OPEX costs.Bharti Airtel Ltd on February 13, 2008 has announced that it has achieved the 60million customer mark. This landmark has catapulted Bharti Airtel into the club oftop mobile operators in the world in terms of subscriber base. The 60 millioncustomer base covers mobile as well as fixed line and broadband customers.Bharti Airtel tied up with US-based Apple Inc to bring the popular GSM-basediPhone in the country.Bharti Airtel Ltd has forged a technology alliance with Infosys Technologies Ltd tolaunch its Direct-to-Home (DTH) television services. Infosys, through its digitalconvergence platform, will offer a suite of products including devices, applicationservers and interactive applications for Airtels DTH services.
  16. 16. 2009Bharti Airtel HAS signed a five-year managed services deal valued at 0 millionwith Alcatel Lucent for its fixed-line and broadband operations.Bharti Airtel launched the Airtel Advantage initiative. The initiative is aimed atoffering the added advantage to Airtel customers to be in touch with each otherat an affordable rate of 50 paise per minute, be it a national long distance call(STD) or a local call.In order to create products and services for the small, medium and largeenterprises, Bharti Airtel and Cisco announced a strategic business alliance. Thealliance would combine the strengths of Airtels network service and CiscoInternet Protocol (IP) technologies.Bharti Airtel - Airtel and mChek announce milestone of One Million users;introduce a broad range of new mCommerce services.2010Bharti Airtel submitted its bid for 3G spectrum, the auction for which starts fromApril 9.Bharti Airtel has partnered with US-based software maker VMware Inc. It hasdone this in order to focus on the cloud-based managed computer servicesmarket.Bharti Airtel, Indias No.1 cellular carrier has won broadband spectrum in fourcircles. Earlier, Bharti has said that it had tied up the entire financing requirementof .3 bn for the planned buy, through a series of banks.Gearing up for the roll out its 3G services soon, Bharti Airtel on Monday said ithas chosen Ericsson India, Nokia Siemens Networks and Huawei Technologiesas network partners to launch the third generation mobile services. All the threepartners will plan, design, deploy and maintain a state-of-the-art 3G HSPA (highspeed packet access) network in 13 telecom circles of the total 22 for whichBharti Airtel has bagged the licences for over Rs.12,000 crore.
  17. 17. Worldwide PresenceCoverage map of Bharti Airtel across 20 countriesAirtel is the 5th largest mobile operator in the world in terms of subscriber base and hasa commercial presence in 20 countries and the Channel Islands.Its area of operations includes:The Indian Subcontinent:Airtel Bangla, in BangladeshAirtel, in IndiaAirtel Sri Lanka, in Sri LankaAirtel Africa, which operates in 16 African countries:Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon,Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Seychelles, Sierra Leone,Tanzania, Uganda and Zambia.The British Crown Dependency islands of Jersey and Guernsey, under the brandname Airtel-Vodafone, through an agreement with Vodafone.
  18. 18. Subscriber BaseBharti Airtel has about 230.8 million subscribers worldwide – 169.18 million in India,46 million are in Africa, 4 million in Bangladesh and 1.8 million in Sri Lanka as of theend of June 2011. The numbers include mobile services subscribers in 19 countries andIndian Telemedia services and Digital services subscribers.IndiaThe Airtel subscriber base according to Cellular Operators Association of India (COAI)as of December 2010 was:MetrosHyderabad −8,947,870Chennai – 2,947,870Delhi – 7,420,171Mumbai – 3,263,688Kanpur - 3,259,687Kolkata – 3,181,073"A" CircleAndhra Pradesh – 15,329,598Gujarat – 5,980,024Karnataka – 14,004,247Maharashtra – 7,865,425Tamil Nadu – 9,157,295"B" CircleHaryana – 1,856,093Kerala – 3,383,097Madhya Pradesh – 8,527,584Punjab – 5,946,742Rajasthan – 12,001,442Uttar Pradesh (East) – 11,455,638Uttar Pradesh (West) – 5,475,843West Bengal – 7,592,487"C" CircleAssam – 2,828,490Bihar – 13,901,163Himachal Pradesh – 1,528,727Jammu and Kashmir – 1,879,828North Eastern States – 1,748,202Orissa – 4,989,102Airtel is the market leader in India with about 169,186,247 out of the total 598,779,674Subscribers in India or about 28.26% market share as of June 2011.
  19. 19. Sl. No. Name of Company Total Sub Figures % Market Share1 Bharti Airtel 169,186,247 28.26%2 Vodafone Essar 141,519,840 23.63%3 IDEA 95,108,818 15.88%4 BSNL 88,461,492 14.77%5 Aircel 57,980,752 9.68%6 Uninor 26,330,211 4.40%7 Videocon 7,129,886 1.19%8 MTNL 5,236,171 0.87%9 Loop Mobile 3,150,308 0.53%10 Stel 3,317,414 0.55%11 Etisalat 1,358,535 0.23%All India 598,779,674 100.00%
  20. 20. Organizational StructureThe organizational structure that existed till recently concentrated on the hierarchy ofthe operations (not services) inside the company as a whole. The structure depicts thecorresponding operation/region of different in-charges and hence it didnt hold anyoneresponsible for each of its services. So, the company found it better to restructure itsorganizational chart and it came into implementation from 1 August. The transformedorganizational structure will have two distinct Customer Business Units (CBU) with clearfocus on B2C (Business to Customer) and B2B (Business to Business) segments.Bharti Airtels B2C business unit will comprehensively service the retail consumers,homes and small offices, by combining the erstwhile business units – Mobile,Telemedia, Digital TV, and other emerging businesses (like M-commerce, M-health, M-advertising etc.). The B2C organization will consist of Consumer Business and MarketOperations.
  21. 21. Sunil Bharti Mittal (Chairman and Group CEO of Bharti Enterprises)Sunil Bharti Mittal (born 23 October 1957) is an Indian telecom mogul, philanthropistand the founder, chairman and Group CEO of Bharti Enterprises. The US$8.3 billionturnover company runs Indias largest GSM-based mobile phone service and worldsfifth largest wireless company with over 190 million customers across 19 countries inAsia and Africa. He is the son of Sat Paul (former MP) and Lalita.In 2007, he was awarded the Padma Bhushan, Indias third highest civilian honorAwards and Recognition Transforming India Leader, NDTV Business Leader Awards 2008. GSMA Chairmans Award 2008. Padma Bhushan in 2007, from the President of India. Asia Businessman of the Year, Fortune Magazine 2006. Telecom Person of the Year, Voice & Data, 2006. CEO of the year 2005, at the Frost and Sullivan Asia Pacific ICT awards 2006. Best Asian Telecom CEO, Telecom Asia Awards 2005. Best CEO, India, Institutional Investor, 2005. Business Leader Of The Year, Economic Times, 2005. INSEAD Business Leader Award 2011
  23. 23. Strengths* Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellularprovider in India, and also supplies broadband and telephone services - as well asmany other telecommunications services to both domestic and corporate customers.* Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, withwhom they hold a strategic alliance. This means that the business has access toknowledge and technology from other parts of the telecommunications world.* The company has covered the entire Indian nation with its network. This hasunderpinned its large and rising customer base.Weaknesses* An often cited original weakness is that when the business was started by Sunil BhartiMittal over 15 years ago, the business has little knowledge and experience of how acellular telephone system actually worked. So the start-up business had to outsource toindustry experts in the field.* Until recently Airtel did not own its own towers, which was a particular strength ofsome of its competitors such as Hutchison Essar. Towers are important if your companywishes to provide wide coverage nationally.* The fact that the Airtel has not pulled off a deal with South Africas MTN could signalthe lack of any real emerging market investment opportunity for the business once theIndian market has become mature.
  24. 24. Opportunities* The company possesses a customized version of the Google search engine which willenhance broadband services to customers. The tie-up with Google can only enhancethe Airtel brand, and also provides advertising opportunities in Indian for Google.* Global telecommunications and new technology brands see Airtel as a key strategicplayer in the Indian market. The new iPhone will be launched in India via an Airteldistributorship. 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 industryapproaches and practices - for example replacing the Revenue-Per-Customer modelwith a Revenue-Per-Minute model which is better suited to India, as the companymoved into small and remote villages and towns.* The company is investing in its operation in 120,000 to 160,000 small villages everyyear. It sees that less well-off consumers may only be able to afford a few tens ofRupees per call, and also so that the business benefits are scalable - using itsMatchbox strategy.* Bharti Airtel is embarking on another joint venture with Vodafone Essar and IdeaCellular to create a new independent tower company called Indus Towers. This newbusiness will control more than 60% of Indias network towers. IPTV is another potentialnew service that could underpin the companys long-term strategy.
  25. 25. Threats* Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owneda 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rivalHutchison Essar. Knowledge and technology previously available to Airtel now movesinto the hands of one of its competitors.* The quickly changing pace of the global telecommunications industry could temptAirtel to go along the acquisition trail which may make it vulnerable if the world goes intorecession. Perhaps this was an impact upon the decision not to proceed with talksabout the potential purchase of South Africas MTN in May 2008. This opened the doorfor talks between Reliance Communications Anil Ambani and MTN, allowing acompeting Indian industrialist to invest in the new emerging African telecommunicationsmarket.* Bharti Airtel could also be the target for the takeover vision of other globaltelecommunications players that wish to move into the Indian market.
  26. 26. Financial StatusBalance Sheet of Bharti AirtelBalance Sheet of Bharti Airtel ------------------- in Rs. Cr. -------------------Mar 11 Mar 10 Mar 09 Mar 08 Mar 0712 mths 12 mths 12 mths 12 mths 12 mthsSources Of FundsTotal Share Capital 1,898.80 1,898.77 1,898.24 1,897.91 1,895.93Equity Share Capital 1,898.80 1,898.77 1,898.24 1,897.91 1,895.93Share Application Money 278.60 186.09 116.22 57.63 30.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 41,932.10 34,650.19 25,627.38 18,283.82 9,515.21Revaluation Reserves 2.10 2.13 2.13 2.13 2.13Net worth 44,111.60 36,737.18 27,643.97 20,241.49 11,443.27Secured Loans 17.10 39.43 51.73 52.42 266.45Unsecured Loans 11,880.40 4,999.49 7,661.92 6,517.92 5,044.36Total Debt 11,897.50 5,038.92 7,713.65 6,570.34 5,310.81Total Liabilities 56,009.10 41,776.10 35,357.62 26,811.83 16,754.08Mar 11 Mar 10 Mar 09 Mar 08 Mar 0712 mths 12 mths 12 mths 12 mths 12 mthsApplication Of FundsGross Block 61,437.50 44,212.53 37,266.70 28,115.65 26,509.93Less: Accum. Depreciation 20,736.70 16,187.56 12,253.34 9,085.00 7,204.30Net Block 40,700.80 28,024.97 25,013.36 19,030.65 19,305.63Capital Work in Progress 6,497.60 1,594.74 2,566.67 2,751.08 2,375.82Investments 11,813.00 15,773.32 11,777.76 10,952.85 56,009.10Inventories 34.40 27.24 62.15 56.86 47.81Sundry Debtors 2,375.80 2,104.98 2,550.05 2,776.46 1,418.52Cash and Bank Balance 126.60 54.89 153.44 200.86 239.11Total Current Assets 2,536.80 2,187.11 2,765.64 3,034.18 1,705.44Loans and Advances 11,186.10 7,072.42 5,602.83 5,103.13 3,160.02Fixed Deposits 7.20 761.86 2,098.16 302.08 541.35Total CA, Loans & Advances 13,730.10 10,021.39 10,466.63 8,439.39 5,406.81Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 16,104.80 12,979.55 13,832.49 12,400.38 9,809.83Provisions 627.60 658.75 634.40 1,961.95 1,232.84Total CL & Provisions 16,732.40 13,638.30 14,466.89 14,362.33 11,042.67Net Current Assets -3,002.30 -3,616.91 -4,000.26 -5,922.94 -5,635.86Miscellaneous Expenses 0.00 0.00 0.09 0.20 2.66Total Assets 56,009.10 41,776.12 35,357.62 26,811.84 16,754.07Contingent Liabilities 49,771.40 3,921.50 4,104.25 7,140.59 7,615.04Book Value (Rs) 115.42 96.24 145.01 106.34 60.19Source: Dion Global Solutions Limited
  27. 27. -10,000.000.0010,000.0020,000.0030,000.0040,000.0050,000.0060,000.00Mar 07 Mar 08 Mar 09 Mar 10 Mar 11Net worth 11,443.27 20,241.49 27,643.97 36,737.18 44,111.60Total Liabilities 16,754.08 26,811.83 35,357.62 41,776.10 56,009.10Investments 705.82 10,952.85 11,777.76 15,773.32 11,813.00Net Current AssTotal Assetsets -5,635.86 -5,922.94 -4,000.26 -3,616.91 -3,002.30Total Assets 16,754.07 26,811.84 35,357.62 41,776.12 56,009.10Rs.inCr.Balance Sheet
  28. 28. Profit & Loss account of Bharti AirtelProfit & Loss account of Bharti Airtel ------------------- in Rs. Cr. -------------------Mar 11 Mar 10 Mar 09 Mar 08 Mar 0712 mths 12 mths 12 mths 12 mths 12 mthsIncomeSales Turnover 38,015.80 35,609.54 34,048.32 25,761.11 17,851.61Excise Duty 0.00 0.00 0.00 0.00 0.00Net Sales 38,015.80 35,609.54 34,048.32 25,761.11 17,851.61Other Income 218.20 1,118.46 -1,261.75 104.04 105.62Stock Adjustments 7.20 -34.91 5.29 9.05 30.07Total Income 38,241.20 36,693.09 32,791.86 25,874.20 17,987.30ExpenditureRaw Materials 251.30 278.72 286.94 42.90 52.16Power & Fuel Cost 0.00 0.00 0.00 0.00 0.00Employee Cost 1,304.50 1,401.66 1,397.54 1,297.88 1,076.95Other Manufacturing Expenses 14,204.20 11,882.41 8,627.13 7,339.01 5,017.27Selling and Admin Expenses 8,137.70 6,856.42 9,385.68 5,892.50 4,030.48Miscellaneous Expenses 699.60 1,482.39 1,409.89 535.46 444.28Preoperative Exp Capitalised 0.00 -293.31 -269.25 0.00 0.00Total Expenses 24,597.30 21,608.29 20,837.93 15,107.75 10,621.14Mar 11 Mar 10 Mar 09 Mar 08 Mar 0712 mths 12 mths 12 mths 12 mths 12 mthsOperating Profit 13,425.70 13,966.34 13,215.68 10,662.41 7,260.54PBDIT 13,643.90 15,084.80 11,953.93 10,766.45 7,366.16Interest 296.70 283.35 434.16 393.43 282.07PBDT 13,347.20 14,801.45 11,519.77 10,373.02 7,084.09Depreciation 4,193.70 3,890.08 3,206.28 3,166.58 2,353.30Other Written Off 417.90 207.84 178.82 266.07 137.80Profit Before Tax 8,735.60 10,703.53 8,134.67 6,940.37 4,592.99Extra-ordinary items 11.80 -50.78 -46.15 -60.67 9.92PBT (Post Extra-ord Items) 8,747.40 10,652.75 8,088.52 6,879.70 4,602.91Tax 1,007.60 1,177.87 321.78 632.43 566.79Reported Net Profit 7,716.90 9,426.15 7,743.84 6,244.19 4,033.23Total Value Addition 24,346.00 21,329.56 20,551.00 15,064.84 10,568.98Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 379.80 379.79 379.65 0.00 0.00Corporate Dividend Tax 60.10 64.55 64.52 0.00 0.00Per share data (annualised)Shares in issue (lakhs) 37,975.30 37,975.30 18,982.40 18,979.07 18,959.34Earning Per Share (Rs) 20.32 24.82 40.79 32.90 21.27Equity Dividend (%) 20.00 20.00 20.00 0.00 0.00Book Value (Rs) 115.42 96.24 145.01 106.34 60.19Source: Dion Global Solutions Limited
  29. 29. Mar 07 Mar 08 Mar 09 Mar 10 Mar 11Total Income 17,987.30 25,874.20 32,791.86 36,693.09 38,241.20Total Expenses 10,621.14 15,107.75 20,837.93 21,608.29 24,597.30Operating Profit 7,260.54 10,662.41 13,215.68 13,966.34 13,425.70Reported Net Profit 4,033.23 6,244.19 7,743.84 9,426.15 7,716.900.005,000.0010,000.0015,000.0020,000.0025,000.0030,000.0035,000.0040,000.0045,000.00Rs.icCr.Profit & Loss Account
  30. 30. Cash Flow of Bharti AirtelCash Flow of Bharti Airtel ------------------- in Rs. Cr. -------------------Mar 11 Mar 10 Mar 09 Mar 08 Mar 0712 mths 12 mths 12 mths 12 mths 12 mthsNet Profit Before Tax 8725.80 10699.25 8161.54 6972.54 4601.37Net Cash From Operating Activities 13215.40 12692.63 11853.15 10459.85 8107.95Net Cash (used in)/fromInvesting Activities-19075.00 -10601.66 -10894.38 -11648.41 -7975.05Net Cash (used in)/from Financing Activities 5646.50 -2539.32 -672.00 898.03 340.13Net (decrease)/increase In Cash and CashEquivalents-213.10 -448.35 286.77 -290.53 473.03Opening Cash & Cash Equivalents 341.50 789.88 503.31 793.47 307.43Closing Cash & Cash Equivalents 128.40 341.53 790.08 502.94 780.46Source: Dion Global Solutions LimitedMar 07 Mar 08 Mar 09 Mar 10 Mar 11Net Profit Before Tax 4601.37 6972.54 8161.54 10699.25 8725.8Net (decrease)/increase InCash and Cash Equivalents473.03 -290.53 286.77 -448.35 -213.1-2000020004000600080001000012000Rs.inCr.Cash Flow
  31. 31. Marketing StrategyBharti decided to design different marketing strategies for different circles depending onthe strategies, employed by the competitors. While the company was focusing on itspricing strategies, its competitors in various sectors were concentrated on new serviceofferings and value additions since the players almost immediately matched pricereduction moves, companies had begun focusing on developing value-added offeringsand schemes to expand their market and gain customer loyalty.Analysts remarked that the players were coming up with new schemes or value-additions almost every week to get the better of their competitors. By constantly keepingitself abreast with the moves of its competitors and launching various proactive/reactiveschemes, Bharti was able to retain its leadership position. Despite continual attacksfrom Vodafone, Reliance, Idea Cellular and BSNL, Bharti is cellular services receivedgood high response in all circles during2005. It was reported that in Mumbai, 60-75% ofcustomers seeking Airtel services were BPL Mobile and Hutch subscribers. In fact, itwas becoming difficult for the company to activate cellular connections in Mumbaiswiftly on account of the high rush ± in some cases; it took almost three days to activatea connection. Bharti has spent a considerable amount on advertising its mobile phoneservice, Airtel. Besides print advertising, the company had put up large no of hoardingsand kiosks in and around Delhi. The objective behind designing a promotion campaignfor the Airtel services is to promote the brand awareness and to build brandpreferences. It is trying to set up a thematic campaign to build stronger brand equity forAirtel.Since the cellular phone category itself is too restricted, also the fact that a Cellularphone is a high involvement product, price doesnt qualify as an effective differentiator.The image of the service provider counts a great deal. Given the Cell phone category, itis the network efficiency and the quality of service that becomes important. What nowthe buyer is looking at is to get the optimum price-performance package. This alsoserves as an effective differentiator Brand awareness is spread through the campaignsand brand preference through brand stature.
  32. 32. Airtels campaign in the capital began with a series of teaser hoardings across the city,bearing just the companys name and without explaining what Airtel was. In the nextphase the campaign associated Airtel with Cellular only thereafter was the BhartiCellular connection brought up. Vans with Airtel logos roamed the city, handing outbrochures about the company and its services to all consumers. About 50,000 directcallers were sent out. When the name was well entrenched in the Delimits is mind, theAirtel campaign began to focus on the utility of Cell phone.In the first four months alone Airtels advertisement spends exceeded Rs.4crores. As oftoday the awareness level is 60% unaided. This implies that if potential orknowledgeable consumers are asked to name a Cellular phone service provider that ison the top of his/her mind 60% of them would name Airtel. As for aided it -is 100 %( bygiving clues and hints etc.).Brand strength of a product or the health of a brand is measured by the percentagescore of the brand on the above aided and the unaided tests. The figures show thatAirtel is a healthy and a thriving brand.Every company has a goal, which might comprise a sales target and a game plan withdue regard to its competitor. Airtel’s campaign strategy is designed keeping in mind itsmarketing strategy. The tone, tenor and the stance of the visual ads are designed toconvey the image of a market leader in terms of its market share. It tries to portray theimage of being a "first mover every time" and that of a "market leader".The status of the product in terms of its life cycle has just reached the maturity stage inIndia. It’s still on the rising part of the product life cycle curve in the maturity stage.The diagram on the left hand side shows the percentage of the users classified intoheavy, medium and low categories. The right hand side shows the revenue shareearned from the three types of users.Airtel, keeping in mind the importance of the customer retention, values its heavy usersthe most and constantly indulges in service innovation. But, since heavy users compriseonly 15-20% of the population the other segment cannot be neglected. The populationwhich has just realized the importance of cellular phones has to be roped in. It is for thisreason that the service provider offers a plethora of incentives and discounts. Concertslike the "Freedom concert" are being organized by Airtel in order to promote sales. Themedia channel is chosen with economy in mind. The target segment is not veryconcrete but, there is an attempt to focus on those who can afford. The printadvertisements and hoarding are placed in those strategic areas which most likely tocatch the attention of those who need a cellular phone. The product promise (whichmight cost different 1 higher) is an important variable in determining the target audience.
  33. 33. Besides this, other promotional strategies that Airtel has adopted are.People who have booked Airtel services have been treated to exclusive premiersof blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonusmiles on the German airlines frequent fliers programs.There have been educational campaigns, image campaigns, pre launchadvertisements, launch advertisements, congratulatory advertisements,promotional advertise-ments, attacking advertisements and tacticaladvertisements.PROMOTIONAL STRATEGYAirtel to “Touch Tomorrow” with a new brand vision The Bharti Mobile promoted AirTelcellular service will go in for repositioning of its brand image. The new brand ethos isportrayed in two distinct fashions - the tag line "Touch Tomorrow", which underscoresthe leading theme for the new brand vision, followed by "The Good Life", whichunderscores a more caring, more customer centric organization. Aimed at re-engineering its image as just simply a cellular service provider to an all out informationcommunications services provider, Touch Tomorrow is meant to embrace the newgeneration of mobile communication services and the changing scope of customerneeds and aspirations that come along with it The new communication is about anewdimension in the cellular category that goes beyond the Internet, SMS, roaming, IVRS,etc but which engulfs the whole gamut of wireless digital broadband services that willconstitute tomorrows cellular services. The new campaign is in two phases - the first ofwhich will communicate overall brand philosophy and the second products and services.According to Mr.Jagdish Kini, Chief Operating Officer, Bharti Mobile Limited, Karnataka"We are adopting anew brand- platform - Touch Tomorrow - not only to reflect ourcorporate ethos but also business strategy”.The new identity will have the logo in Red, Black and White colors along with lower casetypography to convey warmth.AirTel will incorporate the latest branding in all of its communication and will soon begoing in for an enhanced promotional drive to establish the brands presence.
  34. 34. Bharti Airtel VS Vodafone EssarBharti Airtel Limited, a group company of Bharti Enterprises, is a leading emergingmarket Telco with operations in 19 countries across Asia and Africa. The company hasover 230.8 million customers across its operations. Bharti Airtel has been ranked amongthe six best performing technology companies in the world by Business Week.Vodafone Essar is the Indian subsidiary of Vodafone Group and commencedoperations in 1994 when its predecessor Hutchison Telecom acquired the cellularlicense for Mumbai. The company now has operations across the country with over 100million customers. Vodafone is the worlds leading international mobile communicationsgroup with approximately 333 million proportionate customers as on 31 December2009. Vodafone currently has equity interests in 31 countries across five continents andaround 40 partner networks worldwide.Bharti Airtel -1. Market segmentation -Geographical segment (metropolitans & cities India)Demographic segment - middle income groupsPeople age group of 20 to 28 year2. Target marketing -People who living in cities and towns.Poor or middle income group people.Youngsters in big cities.Businessmen3. Positioning -Creating brands (Sharukh khan & Sachin Tendulker)Ads and promotionsPromotion for study of poor children4. Marketing mix -Price: low price strategyPlace: maximum outlets and service centersProduct: verities available for various groupsPromotion: various schemes for pre-paid and post-paid.
  35. 35. VodafoneVodafone target the rural India the main targeted customers of Vodafone are from ruralIndia. By offering cheap and light mobile sets Vodafone attracts most of the customersof small villages and towns. Offering cheap handsets Vodafone offers cheap and freeconnections to all customers. The cost for these sets was Rs-799-849-1099 per set andonward. In every district and big towns Vodafone opens its service centers to providebetter support and servicesStrong logistics and supply chain Vodafone has a strong logistic and supply all overIndia. In every small town the potential customers can easily purchase the VodafoneSIM & Sets. Targeting youngsters in metropolitans Vodafone attracts youngsters byoffering colorful handset at very low prices.BRAND POSITIONING BY VODAFONE1. Market segmentationGeographical segment (rural India)Demographic segment - middle income groups2. Target marketingPeople living in small towns and villages.Poor and middle income groups.Youngsters in big cities.Businessmen3. PositioningCreating brandsAds and promotions4. Marketing mixPrice : low price strategyPlace : maximum outlets and service centersProduct : verities available for various groupsPromotion: various schemes for pre-paid and post-paidFollowing are the few suggestions to Airtel and Vodafone for improving the marketshare and image of the products concerned.The brands must be made available easily in, PCO & general stores.Company must undertake extensive promotional activities like advertisementsmust be released in different Medias to create brand awareness.Sales promotion tools like gifts, contests and coupons must be given toretailers as well as customers and prospects.Catalogues should be distributed among customers.Price should be as competitive as other company maintains.Distribution of new connection should be in reach of customer pocket.
  36. 36. Suggestion & RecommendationFirst of all company will provide all its dealers and retailers to all sort of promotionequipment such as glow sign board, banner, pum plates etc. in time so that theyincrease their sales which is benefited both retailer as well as company.Few outlets are unaware about scheme so proper communication is necessarybetween distributor and retailers.Number of hoarding should be increased.Company should be lenient in ID verification procedure.To increase the consumer as on network, company should make change in itsFRC plan for example the talk value should be divided in two parts.50% of talkvalue should provide at the time of activation and rest T.T. provide after gap ofsome days.Company should make understand its retailers about the benefits of consumer ason network.Company should give extra return and other bonus, gifts to its retailers so theyput their full efforts to increase the Airtel sales.Company should motivate its sales staff so they will pay more concentration insales and activation of new connections.Company should make some necessary change in its FRC plan. For examplecompany should divide the talk time in to two times {50% at the time ofactivation+50% after 15 days.}
  37. 37. References