Copy of comparision airtel-and-vodafone-marketing-analysis
MBA PROJECTS(airtel
1. Summer Internship Project Report
ROLL NO.-521102515
Submitted by
deePAK PAReeK
iN PARtiAL fuLfiLLmeNt Of the RequiRemeNt
fOR the AwARd Of the degRee
Of
mbA
iN
mARKitiNg mANAgemeNt
1
2. Smu
AnAlysis of Customer
behAviour regArding
buying of Airtel
produCts
deClArAtion
I, Deepak Pareek do hereby declare that the project
report titled “Bharti Airtel Ltd.” is a genuine research
work undertaken by me and it has not been published
anywhere earlier.
Date:
Place:
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3. Deepak Pareek
Acknowledgement
It is almost inevitable to incur indebtedness to all who generously
helped by sharing their invaluable time and rich experience with me,
without which this project would have never been accomplished.
No task can be achieved alone, particularly while attempting to finish
a project of such magnitude. It took many very special people to
facilitate it and support it. Hence, I would like to acknowledge all of their
valuable support and convey my humble gratitude to them.
First of all I thank the Indian marketers and advertisers who have
without fail produced, Surrogate Ads which we so often debate about. At
least they gave me a topic to work on and even realize the issue of
surrogate ads which I did not notice till now.
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5. Executive Summary
It is no wonder that in today’s aggressive business environment, the challenges of
sustaining in these competitive surroundings, preoccupies the minds of many
Business leaders. Customers have many options to choose their telecom operator from
competitive market. Furthermore, they often perceive that what they are purchasing is,
for all practical purposes, a commodity that can be easily obtained from other
companies, if need be. So, how does a corporation distinguish itself in a highly
commoditized and competitive market? Today’s business is more dependent, than
ever before, on their top performing product to be innovate and provide services that
differentiate a company from its fierce competitors. In other words, corporations rely
upon their product and human assets to survive and thrive.
Airtel is one of the leading telecom firms of the country. Airtel is providing
intermediate services to the people of India since 1995. The company is largest
cellular service provider in India and fifth largest in the world in the field of various
telecom services like Mobile network, wireless, landline, broadband, satellite
television, etc. The company is famous for world presence, vast network coverage,
excellent service and brand image managed by experts.
This project was carried out for Bharti house, Infocity, Patia, Bhubaneswar, Odisha.
This is one of the leading centers for marketing and sale of Airtel product and services
in eastern region. The project was carried out for 45 days as summer internship
program in a systematic manner.
This project report contains various section where I’ve discussed about company
profile, its present strength, methodology used, sample size, sample unit, analysis and
discussion, questionnaire, and annexure. I have used various quantitative techniques
to find out the relation between various factors that contribute to awareness &
perception of retailer.
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6. CHAPTER – I
INTRODUCTION
Airtel comes to you from Bharti Airtel Limited, India's largest
integrated and the first private telecom services provider with a footprint
in all the 23 telecom circles. Bharti Airtel since its inception has been at
the forefront of technology and has steered the course of the telecom
sector in the country with its world class products and services.
Bharti Airtel has been leveraging the Gallup employee engagement
framework to drive business for the last five years. Gallup Great Work
Place awards were created to recognise the efforts of Gallup clients in
using the engagement framework to drive their businesses. STEP or
Small Team Engagement Programme develops the functional and people
management skills of vertical heads by giving them challenging targets
and leadership roles in cross-functional teams in order to groom them as
future business leaders. ‘Life’ helps families of employees come closer to
one another and thus helps in building a ‘conducive’ work atmosphere,
says Mr. Krish Shankar, Director, HR, Bharti Airtel Ltd.
Bharti Enterprises has successfully focused its strategy on
telecom while straddling diverse fields of business. From the creation of
'Airtel', one of India's finest brands, to becoming the largest
manufacturer and exporter of world class telecom terminals under its
'Beetel' brand, Bharti has created a significant position for itself in the
global telecommunications sector. Bharti Airtel Limited is today
acknowledged as one of India's finest companies, and its flagship brand
'Airtel', has over 22 million customers across the length and breadth of
India.
While a joint venture with TeleTech Inc., USA marked Bharti.s
successful foray into the Customer Management Services business, Bharti
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7. Enterprises. Dynamic diversification has continued with the company
venturing into telecom software development. Recently, Bharti has
successfully launched an international venture with EL Rothschild Group
owned ELRO Holdings India Ltd., to export fresh Agri products
exclusively to markets in Europe and USA.
TELECOMMUNICATION INDUSTRY
The telecommunications industry is responsible for radio,
television, voice communications, and broadband services. The growth
and innovation of the telecom industry has enabled people to
communicate across the globe and access endless amounts of information
over the internet. Broadband services are becoming faster and easier to
access with fiber optic networks and wireless services like WiMax and
CDMA. Many of the major telecom companies have merged over the last
10 years in order to offer massive product and service portfolios, as well
as further capitalize on bundled media packages ('triple play"). These new
technologies and growth through mergers are enabling these companies
to find new revenue sources and growth opportunities in a mostly mature
market.
World’s telecom industry is an uprising industry, proceeding
towards a goal of achieving two third of the world's telecom connections.
Over the past few years information and communications technology has
changed in a dramatic manner and as a result of that world telecom
industry is going to be a booming industry. Substantial economic growth
and mounting population enable the rapid growth of this industry.
The telecommunications market is expected to rise at an 11 percent
compound annual growth rate at the end of year 2010. The leading
telecom companies like AT&T, Vodafone, Verizon, SBC
Communications, Bell South, Qwest Communications are trying to take
the advantage of this growth. These companies are working on
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8. telecommunication fields like broadband technologies, EDGE(Enhanced
Data rates for Global Evolution) technologies, LAN-WAN inter
networking, optical networking, voice over Internet protocol, wireless
data service etc.
The telecom industry is taking a crucial part of world economy.
The total revenue earned from this industry is 3 percent of the gross
world products and is aiming at attaining more revenues. One statistical
report reveals that approximately 16.9% of the world population has
access to the Internet.
The telecom industry has grown and evolved at an incredible pace
for the last 20 years, dramatically changing the way people communicate
and transforming everyday life along the way. Mobile broadband
subscribership has topped 200 million worldwide. And the rollout of 3G
networks in emerging markets means there is the potential for mobile
broadband subscribers to outnumber wireline broadband subscribers
within the next decade.
This rapid growth has created a dynamic and competitive industry
climate with continually evolving technology and staggering financial
stakes. The shift of revenue from fixed to mobile and from voice to data
is accelerating. Data and media are being untethered from specific
devices or networks. Powerful new mobile devices deliver a combination
of functions previously available only from multiple tools.
The telecommunications industry was comprised of a club of big
national and regional operators. Over the past decade, the industry has
been swept up in rapid deregulation and innovation. In many countries
around the world, government monopolies are now privatized and they
face a plethora of new competitors. Traditional markets have been turned
upside down, as the growth in mobile services out paces the fixed line
and the internet starts to replace voice as the staple business.
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9. Indian Telecom Industry
The India telecom market ranks among the fastest growing
industries in the country. The improvement in the standard of living and
the development of infrastructure and connectivity are some of the mains
reasons for the significant growth of the telecom industry. The growth is
expected to be more over the years.
Presently, there are around 200 million telephone lines in India
which make it the third largest phone network in the world after China
and the US. Today, the telecom market in India enjoys a growth rate of
around 45 % which is the highest in the whole world.
India continues to be one of the fastest growing telecom markets in
the world. Reforms introduced by successive Indian governments over
the last decade have dramatically changed the nature of
telecommunications in the country. The sector ranks second in the world,
with over 225.7 million telephone subscriptions by 2011-end.The fast
track growth of the Indian telecom industry has made it a key contributor
to India’s progress. India adopted a phased approach for reforming the
telecom sector right from the beginning. Privatization was gradually
introduced, first in value-added services, followed by cellular and basic
services. An independent regulatory body, Telecom Regulatory Authority
of India (TRAI), was established to deal with competition in a balanced
manner. This gradual and thoughtful reform process in India has favored
industry growth. Today, there are more than 225 million telecom
subscribers in India. Every month, 6-7 million new subscribers are added.
Upcoming services such as 3G and WiMax will help to further augment
the growth rate. Furthermore, the Indian economy is slated to sustain its
7-9 per cent growth rate in the near future. This is supported by the
political stability that the country is experiencing currently. India’s
demographic outlook makes it one of the largest markets in the world. A
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10. conducive business environment is also created by a favorable regulatory
regime. There exists enormous business potential for telecom companies
on account of the country’s low teledensity, which is close to 19 per cent
presently. The Indian telecom industry is growing at the fastest pace in
the world and India is projected to be the second largest telecom market
globally by 2011
The Indian Telecommunications network with 200 million
connections is the fifth largest in the world and the second largest among
the emerging economies of Asia. Today, it is the fastest growing market in
the world and represents unique opportunities for U.S. companies in the
stagnant global scenario.
Mobile
Airtel has nationwide presence and is the market leader with a
market share of almost completely (as of May 2010). It is 6th most
valued brand according to an annual survey conducted by Brand
Finance and The Economic Times in 2010.
On 19 October 2004, Airtel announced the launch of a BlackBerry
Wireless Solution in India. The launch is a result of a tie-up between
Bharti Tele-Ventures Limited and Research In Motion (RIM).
The Apple iPhone 3G was rolled out in India on 22 August 2008 by
Airtel & Vodafone. Both the cellular service providers rolled out
their AppleiPhone 3GS in the first quarter of 2010. However, high prices and
contract bonds discouraged consumers and it was not as successful as the
iPhone is in other markets of the world. The Apple iPhone 4 was
introduced on 27 May 2011 by Airtel & Aircel. The iPhone 4S in India
was available on Airtel and Aircel. While in other countries carrier locked
phones (phones using the network only of carrier from which they are
brought) have less price compared to fully unlocked phones (phones
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11. having the allowance of using any network supported) the carrier of India
Sell at the same price of an unlocked version and are available more
expensive than other countries, and therefore having less buys.
3G
On 18 May 2010, 3G spectrum auction was completed and Airtel
will have to pay the Indian government 12,295 crore (US$2.7 billion) for
spectrum in 13 circles, the most amount spent by an operator in this
auction. Airtel won 3G licences in 13 telecom circles of
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 Kolkata through an agreement
with Vodafoneand 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 Ericsson India, Nokia Siemens Networks (NSN) and Huawei
Technologies to set up infrastructure for providing 3G services in the
country. These vendors will plan, design, deploy and maintain 3G-HSPA
(third generation, high speed packet access) networks in 13 telecom
circles where the company has won 3G licences. While Bharti Airtel has
awarded network contracts for seven 3G circles to Ericsson India, NSN
would manage networks in three circles. Chinese telecom equipment
vendor Huawei Technologies has been introduced as the third partner for
three circles.
On 24 January 2011, Airtel launched 3G services in Bangalore,
Karnataka – its largest circle by revenue. With this launch, Airtel became
the third private operator (fifth overall) to launch its 3G services in the
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12. country following Reliance Communications and Tata Docomo. On 27
January 2011, Airtel launched 3G in Chennai and Coimbatore.
On 27 July 2011 Airtel launched 3G in three major cities in Kerala
(Trivandrum, Cochin and Calicut) with 3G network sharing agreement
between idea.
Airtel plans to cover 1,500 cities across 13 circles by the end of
March 2012. The company, which has 3G licences for 13 circles, is also
in talks with other service providers to roll out the services in the
remaining 10 circles as part of its roaming offerings.
Airtel had about 3 million 3G subscribers as of May 2011.
4G
On 19 May 2010, the broadband wireless access (BWA) or 4G
spectrum auction in India ended. Airtel paid 3314.36 crores for spectrum
in 4 circles. The circles it will provide 4G in are Maharashtra, Karnataka,
Punjab and Kolkata.
Airtel has selected Nokia Siemens Networks to build and operate
its TD-LTE network in Maharashtra.
Airtel is expected to launch 4G services in by the end of 2012
using TD-LTE technology in 2.3 GHz frequency band.
VAS Fraud
There has been lot of criticism about Airtel for its unauthorised
VAS activation. Many of its services were activated automatically
according to a complaint forum. Several thousands of users were falsely
billed, for example downloading wallpaper or ringtones. In return Airtel
launched STOP/START 121 services for such issues. Alternatively, you
can sign up on the "Do Not Disturb" list to avoid all telemarketing calls
and SMSes.
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13. Controversy
Bharti Airtel (India) along with Loop Mobile, Idea Cellular,
Reliance Communications and Vodafone was issued notices by Telecom
Regulatory Authority of India (TRAI) for violation of Mobile number
portability (MNP) regulations. According to TRAI, they had received
complaints from customers regarding wrong rejection of porting requests
by telecom operators and 10 had been charged for a message requesting
porting code through number 1900. Bharti Airtel faces the largest number
of complaints, at 893 by December 2011, for rejecting mobile number
porting requests. People having cancer due to tower above building are
also reported while they mostly are found to be of Airtel and has one of
the worst towers in India.
Telemedia
The Telemedia business provides services in 89 Indian cities and
consists of two brands.
Airtel Broadband provides broadband and IPTV services. Airtel
provides both capped as well as unlimited download plans [reduced
speeds at unlimited data are implied]. The maximum speed available for
home users is 16Mbit/s.
Airtel Fixed Line which provides fixed line services.
Airtel has about 3.16 million wireline customers, of which 42.6%
are broadband/internet subscribers as of August 2010. Until 18 September
2004, Bharti provided fixed-line telephony and broadband services under
the Touchtel brand. Bharti now provides all telecom services including
fixed-line services under a common brand "Airtel".
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14. Digital Television
The Digital TV business provides Direct-to-Home (DTH) TV
services across India under the brand name Airtel digital TV. It started
services on 9 October 2008 and has about 32.44 million customers as of
August 2010.
Enterprise
The Enterprise business provides end-to-end telecom solutions to
corporate customers and national and international long distance services
to telcos through its nationwide fiber optic backbone, last mile
connectivity in fixed-line and mobile circles, VSATs, ISP and
international bandwidth access through the gateways and landing stations.
It has two sections under it.
Mobile data service
The different services under mobile data are BlackBerry services,a
web-enabled mobile email solution working on 'Push Technology', USB
modem that helps in getting instant access to Internet and corporate
applications, Airtel Data Card that gives the liberty to access the internet
anytime, Easy Mail is a platform that provides access to
personal/corporate e-mails independent of handset operating system and
application services that shorten the queues at the billing section, off-load
the pressure on the billing staff and bring convenience to the user.
Enterprise business solutions
There are two kind of solutions offered by Airtel. One is GPRS
Based Solutions like mobile applications tools for enterprise, Track Mate,
automatic meter reading solutions etc. and the other is SMS Based
Solutions like interactive sms, bulk sms, inbound call center solutions.
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15. Android-based tablet
Beetel Teletech Ltd., a unit of Bharti Enterprises Ltd., on 18
August launched a 9,999 rupees ($220) 7-inch tablet in India based on
Google Inc.'s Android operating system. The offering is intended to
capitalize on the expected demand for cheap computing devices in the
world's fastest-growing and second-largest mobile phone market.
Rest of the World
Africa
Bangladesh
Sri Lanka
Channel Islands: Jersey and Guernsey
On 1 May 2007, Jersey Airtel and Guernsey Airtel, both wholly
owned subsidiaries of the Bharti Group, announced they would launch
mobile services in the British Crown Dependency islands of Jersey
and Guernsey under the brand name Airtel-Vodafone after signing an
agreement with Vodafone. Airtel-Vodafone operates a 3G network in
Jersey and Guernsey.
Jersey and Guernsey are British Crown Dependencies. They are not
independent countries. Therefore, Airtel's countries of operation is
considered to be 19.
Subscriber Base
Bharti Airtel has about 243.336 million subscribers worldwide –
232.95 million in India and South Asia and 50.949 million in Africa as of
the end of December 2011. The numbers include mobile services
subscribers in 19 countries and Indian Telemedia services and Digital
services subscribers.
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16. STATEMENT OF THE PROBLEM
Cellular services are performing well. But it is not that much level
it has to face much competition due to the technology development.
Today fashion becomes yesterday’s model of the cellular. Marketing the
product is the difficult work of the marketer.
Demand of the customer is related to the product increase in some
times and vice versa. The wide market is not converted by the marketer
due to their incapability.
market demand is essential one. Consumer demand is to be considered
because, the consumer as a king of marketing. Marketer should fulfil the
consumer needs.
SCOPE OF THE STUDY
The market and marketing are important in the modern world. This
analysis consists of the airtel cellular service in Salem market, market
segments and coverage are included under this evaluation. Schemes,
types of recharge, market area, beneficiaries of Airtel card and
competitors were studied under this head. The study limits within the
Salem city only. It involves the respondents of all category consumers
working in various fields like Government employees, private sector,
professionals, self employee and etc..
The study is aimed to analysis the market and marketed area of
Airtel cellular service over the Tamil Nadu and the respondents of the
various type of customers in Salem.
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17. OBJECTIVE OF THE STUDY
To study the consumer trends in telecommunication sector.
To study consumer decision-making & preferences.
To study marketing strategies adopted by Airtel.
To study the level of customer satisfaction in Airtel.
To study the market potential.
To study customer purchase decision behaviour.
To understand the needs of different consumer segments.
• Comparative study of different mobile companies.
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18. METHODOLOGY
Research in common parlance refers to a search for knowledge.
One can also define research as a scientific and systematic search for
pertinent information as a specific topic. In fact, research is an of
scientific investigation.
The Advanced Learner’s Dictionary of Current English lays down
the meaning of research as “a careful investigation or inquiry specially
through search for new facts in any branch of
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20. knowledge.” Redman and More define research as a “systematized
effort to gain new knowledge.” Some people consider research as
movement, a movement from the known to the unknown. It is actually a
voyage of discovery. We all possess the vital instinct of inquisitiveness
makes us probe and attain full and fuller understanding of the unknown.
This inquisitiveness is the mother of all knowledge and the method,
which man employs for obtaining the knowledge of whatever the
unknown, can be termed as research.
Defining the research problem:
A researcher must find the problem and formulate it so that it
becomes susceptible to research. Like a medical doctor, a researcher must
examine all the symptoms (observed by him) concerning a problem
before he can diagnose correctly. And therefore, I have also defined the
research problem i.e. to study consumer trends, behaviour, preferences
and level of satisfaction in Airtel communication Ltd.
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21. PRIMARY OBJECTIVES:-
To identify the market standing of the airtel limited with its
competitive telecom companies.
To study and analyze the perception status and the movement of
the airtel services along with its competitors.
SECONDARY OBJECTIVES:-
Find out the potential market and also prefer to write for
competitive.
Find out the potential customers, who can be very beneficial for the
company.
To make aware the customer about company’s services and to
educate them and aware about the different benefits.
To have a healthy conversation with customer to build a good
relationship, to find out the problem related with the service of the
company.
To motivate the customer towards company’s services and to
collect the meaningful suggestion for company betterment.
To formulate the competitive marketing strategies to have better
approach to the customer.
To study the present, past and response of customer towards the
services of airtel.
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22. RESEARCH DESIGN
Marketing research is often concerned with the behaviours of the
consumer in the respect marketing research have drawn heavily on the
behavioural. Sciences such a psychology and sociology in fact the
contribution of these science to marketing research have been very
significant especially with regard to two aspect.
1. The research technique used by psychology and they have amply
used sociologists being of considerable relevance to marketing
researchers.
2. The concept and the theories of these behavioural sciences are also
proved to be relevant to market researcher.
Type of information to be collected:
a. Phrasing of the questionnaire.
b. Order or sequence of the question.
c. Number of question to be asked.
d. Lay out of the questionnaire.
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23. LIMITATIONS
• In this project, I have tried to present facts with figures penetrating
to my survey skill it has some limitation, which are there in this
project need identification.
• The sample survey is done on a very small number of people thus
the results drawn may be different from the opinion of the universe.
• The time of two months is very less for covering all the aspects of
the project.
• The feedback received from the individuals is according to his
perception, limited exposure and personal knowledge level.
• Very less time was there for interacting with corporate clients.
• Problem in meeting with the concern person without appointment.
• The last but not the least is that the database which I gathered from
the websites is not so reliable because many times I face a
difficulty to find the address of the companies and sometimes the
companies change the address and not upgrade in the websites due
to which I waste my time as well as money also.
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24. CHAPTER SCHEME
The introductory chapters deals with the introduction, evolution of
market scope of the study, statement of the problem, objectives,
Hypothesis, methodology, statistical tools and limitation of the
study.
The second chapter include the profile of the study, company
profile and area of the study.
The third chapter consists of review of literature.
The fourth chapter contains of analysis and interpretations of data
relating to Airtel cellular service.
The final chapter ‘resume’ consolidates findings, suggestions and
conclusion.
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25. CHAPTER – II
COMPANY PROFILE
Telecom giant Bharti Airtel is the flagship company of Bharti
Enterprises. The Bharti Group, has a diverse business portfolio and has
created global brands in the telecommunication sector. Bharti has recently
forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with
Wal-Mart for the cash & carry business. It has successfully launched an
international venture with EL Rothschild Group to export fresh agri
products exclusively to markets in Europe and USA and has launched
Bharti AXA Life Insurance Company Ltd under a joint venture with
AXA, world leader in financial protection and wealth management.
Airtel comes to you from Bharti Airtel Limited, India’s largest
integrated and the first private telecom services provider with a footprint
in all the 23 telecom circles. Bharti Airtel since its inception has been at
the forefront of technology and has steered the course of the telecom
sector in the country with its world class products and services. The
businesses at Bharti Airtel have been structured into three individual
strategic business units (SBU’s) - Mobile Services, Airtel Telemedia
Services & Enterprise Services. The mobile business provides mobile &
fixed wireless services using GSM technology across 23 telecom circles
while the Airtel Telemedia Services business offers broadband &
telephone services in 95 cities. The Enterprise services provide end-to-
end telecom solutions to corporate customers and national & international
long distance services to carriers. All these services are provided under
the Airtel brand
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26. Airtel Brand
Airtel was born free, a force unleashed into the market with a
relentless and unwavering determination to succeed. A spirit charged with
energy, creativity and a team driven “to seize the day” with an ambition
to become the most globally admired telecom service. Airtel, in just ten
years of operations, rose to the pinnacle of achievement.
As India's leading telecommunications company Airtel brand has
played the role as a major catalyst in India's reforms, contributing to its
economic resurgence.
Today we touch peoples’ lives with our Mobile services, Telemedia
services, to connecting India's leading 1000+ corporate. We also connect
Indians living in USA, UK and Canada with our call home service.
VISION & PROMISES
By 2012 Airtel will be the most admired brand in India:
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
“We at Airtel always think in fresh and innovative ways about the
needs of our customers and how we want them to feel. We deliver what
we promise and go out of our way to delight the customer with a little bit
more”
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27. Corporate Responsibility at Bharti Airtel
At Bharti, CSR is a way of life. Each department and employee
strives to be sensitive to the stakeholders and environment within their
work context. Bharti encourages employees to take decisions and design
business-linked processes that are sensitive to communities and
environment.
Corporate Social Responsibility (CSR) in Bharti encompasses
much more than only social outreach programs. It is an integral part of
the way Bharti conducts its business. The essence of Bharti’s
commitment to Corporate Social Responsibility is embedded in the
‘Corporate Values’, which stem from its deepest held beliefs. These
Values are:
1. To be responsive to the needs of our customers
2. To trust and respect our employees
3. To continuously improve our services – innovatively and expeditiously
4. To be transparent and sensitive in our dealings with all stakeholders
We encourage our employees to take decisions and design business
processes, keeping in mind the following:
• Ethics, fairness and being correct
• Meeting and going beyond compliances and legal requirements
• Showing respect and sensitivity towards stakeholders and
communities, and Nurturing the environment
We practice our CSR beliefs and commitments through a three-
pronged approach:
• Engaging with stakeholders
• Ensuring stakeholder sensitive policies and practices
• Undertaking programs for our employees, community and
environment
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28. Environment, Health and Safety
At Bharti we believe in the philosophy to refuse, reduce, reuse and
recycle. The company has taken many initiatives in this regard, both
within the offices for the benefit of our employees; and for outside world
for the convenience of the people
Few examples of the initiatives taken are mentioned below:
(a) Most of the new Airtel buildings recycle waste water for sanitary and
cooling of equipment purposes e.g. DG sets and AC systems. These
buildings also have rain water harvesting systems for ground water
replenishment where appropriate.
(b) All Airtel offices have energy efficient light fittings and DG sets. We
also ensure automation that enables energy savings in our buildings.
Building Management System (BMS) – Intelligent Building concept is
being followed in all the new Airtel building and campuses that are
coming up. The BMS controls The Heating, Ventilation and Air-
conditioning (HVAC) system,, electricity load management, water
management, parking management, security and safety systems to ensure
an efficiently run building on optimal resources.
(c) New buildings also incorporate the concept of and Energy Wheel
which optimises energy efficiency in buildings. The AC system in our
buildings adds a certain amount of fresh air periodically; In the process of
adding this fresh air the cool air within the building vents out which may
result into higher usage of energy to bring the cooling/ temperature back.
The Energy Wheel concept ensures that as we bring the fresh air in it is
pre-cooled thereby optimizing energy efficiency.
(d) Air quality is checked periodically in all Bharti Airtel offices, and
based on the results, duct cleaning, carpet cleaning, chair and sofa
shampooing is undertaken. Water quality is also monitored in cooling
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29. towers for DG sets and Air Conditioner systems so that water born
diseases such as legionella, etc. are avoided.
(e) Use of air curtains on major office exits and double glazing also
results in significant energy saving.
(f)At the time of oil change in DG sets etc. the discarded oil for disposal
is only sent to companies/ vendors approved by the Central Pollution
Control Board (CPCB) for proper disposal as per CPCB approved
processes. All Bharti Airtel offices follow the basic requirements
specified by the Pollution Control Board) and ensure statutory
compliance.
(g) All Bharti Airtel offices have fire alarm systems. Periodic fire drills
are carried out in Bharti Airtel offices as a practice. All Airtel offices are
provided with First Aid boxes and have identified people as First Aid
specialists.
Community Initiatives
Corporate Social Responsibility is embedded in, and built upon, the
stated ‘values’ of Bharti – the institution. These values guide all our
activities and each employee is encouraged to take decisions and design
business-linked processes that are sensitive to communities and
environment.
“We have an obligation to fulfill to society and the communities in
which we operate, and help improve the quality of life for everyone,
today and in the future.”Based on the basic guidelines and direction
provided in the Code of Conduct, Bharti has undertaken many
community programs.
Bharti’s contribution to society is (a) Bharti’s Corporate Social
Responsibility (CSR) Initiatives, including initiatives undertaken by way
of employee mobilization as well as running environment related
29
30. programs; and (b) Bharti Foundation, a separate vehicle established in
2000 to lead the CSR agenda of Bharti Group of Companies.
BUSINESS DIVISIONS
Bharti Airtel offers GSM mobile services in all the 23-telecom
circles of India and is the largest mobile service provider in the country,
based on the number of customers.
The group offers high speed broadband internet with a best in class
network. With Landline services in 94 cities we help you stay in touch
with your friends & family and the world.
The group focuses on delivering telecommunications services as an
integrated offering including mobile, broadband & telephone, national
and international long distance and data connectivity services to
corporate, small and medium scale enterprises.
The Airtel subscriber base according to Cellular Operators
Association of India (COAI) as of December 2010 was:
30
32. North Eastern States – 1,748,202
Orissa – 4,989,102
Airtel is the market leader in India with about 152,495,219 out of the
total 745,000,000 subscribers in India or about 20.46% market share as of
December 2010.
The Brand Trust Report published by Trust Research Advisory, places
Airtel as the only mobile operator in the top 10 most trusted brands in
India.
MTN
In May 2008, it emerged that Bharti Airtel was exploring the
possibility of buying the MTN Group, a South Africa-based
telecommunications company with coverage in 21 countries in Africa and
the Middle East. The Financial Times reported that Bharti was
considering offering US$45 billion for a 100% stake in MTN, which
would be the largest overseas acquisition ever by an Indian firm.
However, both sides emphasize the tentative nature of the talks,
while The Economist magazine noted, "If anything, Bharti would
be marrying up," as MTN has more subscribers, higher revenues and
broader geographic coverage. However, the talks fell apart as MTN group
tried to reverse the negotiations by making Bharti almost a subsidiary of
the new company.
In May 2009, Bharti Airtel again confirmed that it is in Talks with
MTN and companies have now agreed discuss the potential transaction
exclusively by 31 July 2009. Bharti Airtel said in a statement "Bharti
Airtel Ltd is pleased to announce that it has renewed its effort for a
significant partnership with MTN Group".
Talks eventually ended without agreement, due to the South
African government opposition.
32
33. Joint Ventures
Airtel-Ericsson
As per a five-year managed services agreement signed recently.
Ericsson will manage and optimize Airtel’s mobile networks in Africa.
Ericsson will modernize and upgrade Airtel’s mobile networks in Africa
with the latest technology including its multi standard RBS 6000 base
station.As part of the modernization, Ericsson will also provide
technology consulting, network planning & design and network
deployment.Ericsson has been the managed services and network
technology partner in the Asian operations.
Signature tune
The signature tune of Airtel is composed by Indian musician A. R.
Rahman. The tune became hugely popular and is the world's most
downloaded mobile music with over 150 million downloads. A new
version of the song was released on 18 November 2010, as part of the
rebranding of the company. This version too was composed by Rahman
himself.
33
34. AIRTEL CUSTOMERS
Bharti had 7.99 Cr subscribers, as on September 30, 2011, an
increase in the total subscriber base of 57% over the corresponding period
last year and maintained its leadership position through an improved
market share of all India wireless subscribers at 24.6% as on September
30, 2011, up from 23.4% corresponding to the same period of last year.
Commenting on the results and performance, Mr. Sunil Bharti
Mittal, Chairman & Managing Director, Bharti Airtel Limited, said
“With record customer additions every month, Airtel continues to
consolidate its leadership position in the market. The successful launch of
DTH service has provided another opportunity to the brand to strengthen
it’s connect with the customers, while generating a new revenue stream.”
Bharti Airtel Limited - Summary of Consolidated Financial
Statements - represents Consolidated Statement of Income as per United
States Generally Accepted Accounting Principles (US GAAP)
(A mount in Rs. Cr, expert ratios)
34
Particulars
Quarter Ended
Y-o-Y GrowthSept. 2011 Sept. 2010
Audited Audited
Total revenues 9,020 3,337 42%
EBITDA 3,699 2,710 37%
Cash profit from operations 3,125 2,597 20%
Income before income taxes 1,972 1,747 13%
Net income 2,046 1,614 27%
35. Operating Highlights
(Figures in nos, except ratios)
Particulars Unit
Sept.
30,
2011
June
30,
2010
Q-on-Q
Growth
Sept. 30,
2009
Y-on-Y
Growth
Customers on our
Network
Mobile Services 000's 77,479 69,384 12% 48,876 59%
Tel-media Services 000's 2,509 2,394 5% 2,075 21%
Total 000's 79,989 71,777 11% 50,951 57%
Market Share of Major mobile Operators as of September 2011 (%)
Mobile Operators Market Share
Bharti Airtel 24.96
Reliance
Communication 18.22
Vodafone Essar 17.76
BSNL 12.19
Idea Cellular 9.88
Tata Teleservices 9.54
Others 7.45
35
36. Investor Relations
Creating value for our customers, employees, investors, partners,
vendors and the society at large lies at the root of our fundamental
business strategy. Our core principles of trust and transparency have
come a long way in helping us develop and nurture long-term
relationships with our key stakeholders. Our performance exudes from
our belief in and commitment to the telecom sector; and translates into
creating innovative exciting opportunities for one and all.
We are one of India’s leading providers of telecommunication
services with a nationwide presence in all the 23 licensed jurisdictions
(also known as Telecom Circles). We served an aggregate of 82,748,790
customers as of October 31, 2011; of whom 80,199,747 subscribe to our
GSM services and 2,549,043 use our Telemedia Services either for voice
and/or broadband access delivered through DSL. We are the largest
wireless service provider in the country, based on the number of
subscribers as of October 31, 2011. We also offer an integrated suite of
telecom solutions to our enterprise customers, in addition to providing
long distance connectivity both nationally and internationally. We have
recently forayed into media by launching our DTH Services in October
2011. All these services are rendered under a unified brand “Airtel”.
36
37. Fact sheet
Name Bharti Airtel Limited.
Business Description Provides GSM mobile services in all the 23
telecom circles in India, and was the first private
operator to have an all India presence.
Provides tele-media services (fixed line and
broadband services through DSL) in 95 cities in
India.
Established July 07, 1995, as a Public Limited Company
Proportionate Revenue Rs. 270,122 million (year ended March 31, 2011-
Audited)
Rs. 184,202 million (year ended March 31, 2007-
Audited)
As per Indian GAAP Accounts
Proportionate EBITDA Rs. 114,018 million (year ended March 31, 2011
- Audited) Rs. 74,407 million (year ended March
31, 2007 - Audited) As per Indian GAAP
Accounts
Shares in Issue 1,898,101,604 as at September 30, 2011
Listings The Stock Exchange, Mumbai (BSE)
The National Stock Exchange of India Limited
(NSE)
Market Capitalisation Market Capitalization (as on January 05, 2012)
Approx. Rs. 1,301 billion Closing BSE share
price = Rs. 685.35
Customer Base 80,199,747 GSM mobile and 2,549,043
Telemedia Customers (status as on October 31,
37
38. 2011)
Operational Network Provides GSM mobile services in all the 23
telecom circles in India, and was the first private
operator to have an all India presence.
Provides telemedia services (fixed line) in 95
cities in India.
Company’s Current Situation
Bharti Airtel is one of India’s leading providers of
telecommunication services with a nationwide presence in all the 23
licensed jurisdictions (also known as Telecom Circles). We served an
aggregate of 82,748,790 customers as of October 31, 2011; of whom
80,199,747 subscribe to our GSM services and 2,549,043 use our
Telemedia Services either for voice and/or broadband access delivered
through DSL.
We also offer an integrated suite of telecom solutions to our
enterprise customers, in addition to providing long distance connectivity
both nationally and internationally. We have recently forayed into media
by launching our DTH Services in October 2011. All these services are
rendered under a unified brand “Airtel”
. The company also deploys, owns and manages passive
infrastructure pertaining to telecom operations under its subsidiary Bharti
Infratel Limited. Bharti Infratel owns 42% of Indus Towers Limited.
Bharti Infratel and Indus Towers are the two top providers of
passive infrastructure services in India
Company shares are listed on The Stock Exchange, Mumbai (BSE)
and The National Stock Exchange of India Limited (NSE)
Partners
38
39. The company has a strategic alliance with SingTel. The investment
made by SingTel is one of the largest investments made in the world
outside Singapore, in the company.
The company’s mobile network equipment partners include
Ericsson and Nokia. In the case of the broadband and telephone services
and enterprise services (carriers), equipment suppliers include Siemens,
Nortel, Corning, among others. The Company also has an information
technology alliance with IBM for its group-wide information technology
requirements and with Nortel for call center technology requirements.
The call center operations for the mobile services have been outsourced
to IBM Daksh, Hinduja TMT, Teletech & Mphasis.
Managing Director’s profile
Sunil Bharti Mittal
Chairman & Managing Director since October 2001
Board director since: July 1995 Age: 51 years
• Sunil Bharti Mittal is the Chairman & Managing Director of
Bharti Airtel Ltd. head quartered at New Delhi, India.
• Bharti Airtel, India’s leading private integrated telecom company,
has been at the forefront of the telecom revolution and has
transformed the telecom sector with its world-class services built
on leading edge technologies. Bharti has been a pioneering force
in the telecom sector and today enjoys a strong nationwide
presence.
• Sunil started his career at a young age of 18 after graduating from
Punjab University in India and founded Bharti, with a modest
capital, in the year 1976. Today, at 49 he heads a successful
enterprise, amongst the top 5 in India, with a market capitalization
of over US$ 40 billion and employing over 30,000 people
39
40. • Bharti has grown successfully in partnership with various leading
companies of the world - Singapore Telecom, Vodafone, Warburg
Pincus, British Telecom to name a few.
• The other businesses in the group are consumer electronics
(Beetel), life insurance with AXA of France (Bharti AXA), and a
joint venture with the Rothschild group to develop Indian
horticulture and export fruits and vegetables to the world
(FieldFresh)
• Bharti has recently entered into a JV with Wal-Mart for setting up
supply chain, logistics and cash and carry to support the
burgeoning retail market in India.
• Sunil is an alumnus of Harvard Business School, MA, USA.
• Sunil has been conferred one of the highest civilian award –
Padma Bhushan
• Sunil has been conferred the degree of Doctor of Science (Honoris
Causa) by the G B Pant University of Agriculture & Technology.
Awards and Recognitions
• August 7, 2011: Bharti Airtel adjudged the 'Best Cellular Service
Provider' and 'Best Broadband Service Provider' at the 2011 V&D
100 Awards.
• July 11, 2011: Bharti Airtel Limited voted as India 's most
innovative company , in a survey conducted by The Wall Street
Journal . Bharti Airtel was ranked as the most innovative in
responding to customer needs in a survey conducted to determine
Asia 's 200 most-admired companies.
• June 13, 2011: Sunil Bharti Mittal received U.S.-India Business
Council's 'Global Vision' Award. The prestigious award recognizes
his entrepreneurial zeal and contribution to Indian business.
40
41. • June 11, 2011: Airtel voted the 2nd Most Trusted Service Brand in
the Annual Economic Times-Brand Equity, Most Trusted Brands
survey
• June 2011: Airtel wins the Platinum Trusted Brand Award in the
Mobile Service provider category in the Reader's Digest Asia
Trusted Brands Survey .
• May 26, 2011: Airtel was honoured with the prestigious 'Wireless
Service Provider of the Year' award at the 2011 Frost & Sullivan
Asia Pacific ICT Awards.
• April 17, 2011: Bharti Airtel had the distinction of being amongst
20 companies worldwide and the only one in India , to be honoured
with the 'Gallup Great Workplace Award'.
• April 8, 2011: Airtel adjudged as the 'Best Carrier India' at the
Telecom Asia Award 2011. The Telecom Asia Awards, constituted
by the Telecom Asia magazine, seek to recognize outstanding
performances of companies and individuals in the Asian
telecommunication industry based on criteria such as financials,
market standing, technology and corporate governance.
Shares
The equity shares of Bharti Airtel are currently listed on National
Stock Exchange of India Limited (NSE) and The Stock Exchange,
Mumbai, (BSE). Bharti Airtel offered 185,336,700 equity shares in the
initial public offering (IPO) and raised Rs 8,340.15 million through this
process. The shares were oversubscribed 2.56 times.
With this IPO, Bharti Airtel established certain important
landmarks in the history of the Indian capital market. Together with being
the first 100% book building process that this country has seen, the listing
was completed within a record time of ten working days. of the close of
41
42. the issue. Moreover the process of allotment and issue of shares was also
completed within one day of the last day of pay-in.
The book running lead managers for the IPO were JM Morgan
Stanley and DSP Merrill Lynch and the registrars to the issue was Karvy
Consultants Limited.
42
43. Area Profile
Introduction
The unit deals with a detail study of the Salem city. It includes
geographical location, surroundings, Population, Offices, industrial
background.
Geographical Location
Salem is located at average elevation is 278 m (912 ft).
The city of Salem lies in the north central part of Tamil Nadu and is
surrounded by hills on all sides viz. Nagaramalai to the
north, Jarugumalai to the south, Kanjamalai to the west, Godumalai to the
east and the Shevaroy Hills to the north east. The Kariyaperumal Hill is
situated within the city to the southwest. The Thirumanimuthar
river flows through the city, dividing it into 2 parts. The fort area is the
oldest part of the town. Salem local planning area extends up to 100 km2
.
(39 sq. mi.) within the city.
Economy
Salem is one of the major producers of traditional silver anklets,
which are popular among women. It boasts large textile, steel,
automotive, poultry and sago industries. Salem also has one of the
largest magnetite deposits in India. Companies like Dalmia and
TANMAG have mines here. The Leigh Bazaar market is a large regional
market for agro products.
Silk and cotton fabrics from Salem are sold throughout Tamil Nadu
and are a big buy. The Indian Institute of Handloom Technology, the
second of its kind in India, is found here. Salem is one of the chief
producers of customary silver anklets, which are a rage with the women-
folk here. The Leigh Bazaar market is known for selling agricultural
produce and is usually abounding with visitors and shoppers. Fabric
exporting has been the oldest business in Salem, going back to the 30s.
43
44. Salem has always been known for exporting fabrics and clothes and is
still consistently doing so.
Special Economic Zones (SEZ)
Being one of the fastest growing tier II cities, the Tamil Nadu
government and ELCOT are planning to establish an IT park in Salem
covering about 160 acres (0.65 km2
). SAIL is planning a Steel SEZ inside
the Salem Steel plant covering about 250 acres (1.0 km2
)
There is an exclusive Electrical and Electronics Industrial Estate in
the Suramangalam area of Salem town. Coimbatore-Erode-Salem stretch
was well known for Industries and Textile processings and it is
announced as Coimbatore-Salem Industrial Corridor and further
development works are carried by SIPCOT Linking Scheme.
POPULAR IN SALEM
Salem is known as the Mango city in Tamil Nadu Salem is also
building, Hand loom weaving and Steel Plants. Salem is a Geologist's
paradise, surrounded by hills and the landscape dotted with hillocks.
Salem has vibrant culture dating back to the ancient Kongu Nadu. As a
district, Salem has its significance in various aspects.
Salem is one of the major textile centers in the country. Shevaroys
and Yercaud hills are famous tourist places in Salem District. Salem is an
important regional centre. It is well connected with most of the city by
rail and road networks.
44
45. Human Resource (HR)/ Remuneration Committee
Composition
In compliance with the non- mandatory requirements of Clause 49
of the Listing Agreement, Bharti Airtel has constituted a Remuneration
Committee (which is known as HR Committee). The HR Committee
comprises of following six non-executive directors, out of which four
members including the chairman of the committee are independent
directors.
ESOP Compensation Committee
Composition of ESOP Compensation Committee
The ESOP Compensation Committee of the Board is constituted in
accordance with SEBI (Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999. The Committee comprises of
following six members of whom four are independent and all are non-
executive.
45
46. ‘COMPANY’S PLANS’
Prepaid Plans
Are you wary of committing yourself to a date for making your bill
payments? Is it too much of a bother for you to remember dates for bill
payments? Do you often end up paying late fees against your monthly
utility services bills? Do you end up spending too much if you have the
option to pay the bill later?
Think over for if one of these represents you, we have a solution
for you. Start thinking prepaid is our advise!
So what exactly is this prepaid! It is simply a way of going cellular
by paying for the talk time in advance. For eg if you feel that you need Rs
300 worth of talktime for a month, you can buy a recharge coupon which
gives you that much talktime on your cellphone. Once that money gets
exhausted you can buy another recharge coupon for the same or different
denomination depending on your future need.
Prepaid allows you to be in control of your cellular expenses even
while you are spending. You will be surprised that today In India, Prepaid
connections account for almost 60 to 70 percent of the total new entrants
into cellular telephony. That’s because almost everyone of us wants to be
in control of our cellular expense.
46
47. Some of the many advantages that you enjoy with Airtel Pre-Paid...
Total Cost Control
Enjoy the liberty of total cost control with your Airtel Pre-paid! Re-
charge as much as you feel the need to! Now that's what we call complete
freedom!
No Rentals
Buy an Airtel prepaid card without having to pay any rentals!
No deposits
Your Airtel prepaid card comes without you having to pay heafty
deposits!
STD/ISD facility till the last rupee
Now experience complete freedom like never before with Airtel! Our
STD/ISD facility allows you to make long distance calls in India and
Overseas from your cellular phone!
Instant Balance Inquiry
Check your talk-time instantly by calling our toll-free number!
60 second pulse
Airtel provides you with a 60-second pulse rate! Freedom for you to
experience like never before!
Instant Recharge
Avail of instant recharge on your Airtel prepaid card with just a few
simple steps!
24-hour recharge facility
With our round-the-clock recharge facility, recharge you Airtel prepaid
card anytime, anywhere!
Caller Line Identification
Call Line Identification gives you the power to know the phone number
of the calling party even before you answer the call, thus giving you the
choice to either reject or take the call. It provides the added advantage of
47
48. saving the incoming number directly in the Handset Phone Book. So that
the next time you want to call the same person, you don't need to retype
his number, simply use your phone book.
Call Divert, Call Hold and Call Wait
Avail of special services like call waiting, call hold and call divert – all
with your Airtel prepaid card!
Short Messaging Service (SMS)
With Airtel’s Short Messaging Service (SMS), send messages and jokes
to your friends and colleagues, anytime anywhere!
SMS based Information Services
With Airtel's SMS based information services, you can get upto-the-
minute cricket scores, order flowers as well as send couriers or check
your daily horoscope!
Voice Mail service
Voice Mail lets you receive messages even when your handset is switched
off or when you are outside the coverage area. You can listen to your
messages whenever you feel like, from anywhere in the world. Voice
Mail can store up to 75 messages, with each message of two-minute
duration.
Post-paid Plan
Airtel welcomes you to a vibrant world of unlimited opportunities.
More exciting, innovative yet simple new ways to communicate, just
when you want to, not just through words but ideas, emotions and
feelings. To give you the unlimited freedom to reach out to your special
people in your special way.
Airtel Out of Home Circle
We have established one of the most extensive roaming tie-ups -
both national and international- with the best service providers in the
48
49. respective regions to ensure that you get uninterrupted coverage
throughout. We currently provide roaming coverage in more than 1000
cities and major highways across India. We also provide international
roaming in 56 countries across 101 networks.
National Roaming
Our national roaming coverage currently spans across more than a
1000 cities across India. To subscribe to National Roaming, you have to
pay the following:
Security Deposit- Rs 1500 Monthly Rental- Rs 49
Customer Care
Do you need any clarifications on your bills? Do you have any
feedback or query on our Products & services? You can call us, send us
an E-mail or meet us in person. We shall be glad to help you out in every
possible way.
Contact us by phone
If you are on Airtel, just call us on 121 your Airtel Prepaid phone.
If you are on Airtel postpaid, just call us on 9897012345 or toll free 121
from yourAirtel Postpaid phone.These toll free numbers however, cannot
be dialed when you are roaming.
Group Links of Bharti
Bharti Airtel
Bharti Teletech
Telecom Seychelles
Bharti Telesoft
Bharti Del Monte India
Bharti Retail
Bharti AXA General Insurance
Bharti AXA Life Insurance
49
50. Bharti AXA Investment Managers
Bharti Learning Systems
Jersey Airtel
Guernsey Airtel
Bharti Foundation
Bharti Realty
50
51. CHPTER – III
REVIEW OF LITERATURE
MARKET ANALYSIS
A sound marketing is programmed should start with a careful
analysis of the market demand for a product r service. A market is usually
thought of as the total number of prospective customers for products n a
country. The marketer, often use terms like, available markets, served and
penetrated markets.
MARKET AND MARKETING
The root word in the term marketing is market. Market is a group
of potential customers for a particular product who are willing and able to
spend money or exchange other resources to obtain the product.
Marketing is focused on the market place. Infect the shoppers of post
generations, the words marketing meant to buy groceries. Function of
marketing activities is to bring buyers and sellers together.
Consists of consumer oriented mix of business activities planned
and implemented by the marketer to facilitate the exchange or transfer of
goods, services, and ideas, so that both parties profit in some way.
A market is a group of potential customers for a particular product
who are willing and able to spend money or exchange other resources to
obtain the product. Good or service is a consumer product sold in the
consumer market organization is buying an organizational or business.
Market conditions more conducive the sale prospects. The transport work
and its expansion are necessary for the easy flow of goods for the market.
Market, can be classified into Rural market, Agricultural market, primary
village market, primary whole sale market etc., Consumer market refers
to the market for goods and services purchased by individual and
households to satisfy their consumption desires.
51
52. The term market does not mean any particulars market place in
which things are bought and sold but the whole of any region in which
the buyers and sellers are in such inter course with one another that the
prices of the same goods tend to be equalized easily and quickly. It is the
process of planning executing the conception, pricing, promotion and
distribution of ideas and services to crate exchange will satisfy individual
and organizational objectives keeping customers and building
relationship. Marketers want customers for life. Effective marketers work
to build long term relationships with their customers. Marketing as an
activity involved in getting and keeping customers.
MARKET ANALYSIS
The term market analysis includes the market demand and Market
segmentation.
Market Demand for any product or service three factors to be
considered as
a) People with a satisfied wants.
b) People with money to spend.
c) People with Willingness to Spend Money.
52
53. The size of the demand can be represented by considering these factors.
M=P1xP2xP3
M = Market Demand
P1 = Purchasing Pattern
P2 = Purchasing Power
P3 = Population patterns
The market analysis market demand for a product is the total
demand that would be bought by a defined marketing environment under
a defined marketing programmed.
The market demand is influenced by many factors. In a competitive
market, the lower the product prices, the more be the consumers demand
for when price drops, the quantity sold goes up. If there is a change in
demand, the supply and price both are affected. Changes id amend caused
due to social or economic factor. The increase in demand results in higher
prices and an increase in supply.
In order to find out the probable market demand for a particular
product, the formula can be used.
Market potential = N x R x P
N = Number of people in a specific market for the product
R = Average quantity of purchase per person
P = Average price per product unit.
Definition of 'Market Segmentation'
A marketing term referring to the aggregating of prospective
buyers into groups (segments) that have common needs and will respond
similarly to a marketing action. Market segmentation enables companies
to target different categories of consumers who perceive the full value of
certain products and services differently from one another. Generally
three criteria can be used to identify different market segments:
53
54. 1) Homogeneity (common needs within segment)
2) Distinction (unique from other groups)
3) Reaction (similar response to market)
Market Segmentation
The purpose for segmenting a market is to allow your
marketing/sales program to focus on the subset of prospects that are
"most likely" to purchase your offering. If done properly this will help to
insure the highest return for your marketing/sales expenditures.
Depending on whether you are selling your offering to individual
consumers or a business, there are definite differences in what you will
consider when defining market segments.
Category of Need
The first thing you can establish is a category of need that your
offering satisfies. The following classifications may help.
54
55. For businesses:
Strategic - your offering is in some way important to the enterprise
mission, objectives and operational oversight. For example, a service that
helped evaluate capital investment opportunities would fall into this
domain of influence. The purchase decision for this category of offering
will be made by the prospect's top level executive management.
Operations - your offering affects the general operating policies and
procedures. Examples might be, an employee insurance plan or a
corporate wide communications system. This purchase decision will be
made by the prospect's top level operations management.
Functional - your offering deals with a specific function within the
enterprise such as data processing, accounting, human resources, plant
maintenance, engineering design, manufacturing, inventory control, etc.
This is the most likely domain for a product or service, but you must
recognize that the other domains may also get involved if the purchase of
the product or service becomes a high profile decision. This purchase
decision will be made by the prospect's functional management.
55
56. SWOT ANALYSIS OF AIRTEL
STRENGTHS
1. Strong Brand Image.
2. Good Network Connectivity.
3. Wide Network Coverage.
4. Attractive Promotional Schemes.
5. Good Value Added Services.
6. Operating In 65 Countries With 157 Operators.
WEAKNESS
1. Perceived As An Expensive Brand.
2. Absence In The Rural And Interior Areas.
OPPORTUNITY
1. Poor Network Connectivity of Its Competitors.
2. Large Chunk Of Dissatisfied Customer.
3. Though Being The 4th
Entrant, They Are Operating At 900
Frequencies.
THREATS
1. Strong Visibility of Competitors.
2. Sour Experience With Airtel By Few Can Lead To Bad Word Of
Mouth.
3. Continuous Improvement In Competitor’s Services.
56
57. CHAPTER – IV
DATAANALYSIS AND INTERPRETATION
The data collected by the researcher were analyzed thoroughly and
they were also interpreted by applying statistical tools. The interpretation
of all the table were given as follows.
TABLE 4.1
CLASSIFICATION OF RESPONDENTS ACCORDING TO THEIR
GENDER
Gender No. of respondents Percentage
Male 50 40
Female 75 60
Total 125 100
Source: Primary data
The above table clearly shows that 40% percentage of the
respondents is male and remaining 60% percentage of the respondents are
female.
CHART 4.1
CLASSIFICATION OF RESPONDENTS ACCORDING TO THEIR
GENDER
57
59. TABLE 4.2
CLASSIFICATION OF RESPONDENTS ACCORDING TO THEIR
AGE
Age group No. of respondents Percentage
Below 20 8 6%
20 - 30 27 22%
30 - 40 40 32%
40 - 50 23 18%
Above 50 27 22%
Total 125 100%
Source: Primary data
The above table clearly shows that 6% of the respondents fall
under the age group of below 20 years old., 22% each of the respondents
fall under the age group of 20-30 years and 32% of the respondents 30 to
40 years old. 18% of the respondents 40-50years old and other 22% of the
respondents above 50 years old.
59
61. TABLE 4.3
CLASSIFICATION OF RESPONDENTS ACCORDING TO THEIR
OCCUPATION
OCCUPUTION No. of respondents Percentage
Business 50 40%
Professional 13 11%
Government
Employee
12 9%
Student 50 40%
Total 125 100%
Source: Primary data
The above table clearly shows that 40% of the respondents
Business, 11% each of the respondents Professional 9% of the
respondents government employees and 40% of the respondents are
students.
61
64. Mobile
Connection
No. of respondents Percentage
Yes 120 96
No 5 4
Total 125 100
Source: Primary data
The above table clearly shows that 96% percentage of the
respondents is have a mobile connection and remaining 4% percentage of
the respondents are have not any mobile or telephone.
64
66. TABLE 4.5
KNOWN THE NO. OF TELE COMPANIES
Companies In Number Percentage
6 75 60%
5 37 30%
4 5 4%
Not confirm 8 6%
Total 125 100
Source: Primary data
The above table clearly shows that 60% of the respondents known
6 nos. of the mobile connecting companies. 30% respondents known 5
nos. of the mobile connecting companies. 4% of the respondents known
4 nos. of the mobile connecting companies. Other 6% of the respondents
don’t know or not confirm.
66
68. TABLE 4.6
Company Name In Number Percentage
Airtel 40 32%
Idea 19 15%
Reliance 9 7%
Vodafone 40 32%
BSNL 17 14%
Total 125 100
RESPONDENTS USING COMPETITIVE MOBILE SERVICE
Source: Primary data
The above table clearly shows that 32% of the respondents using
Airtel service both 32% of the respondents using vodafone, 15% of the
respondents Idea, 14% of the respondents BSNL service and 7% of the
respondents Reliance service.
More respondents using Airtel and Vodafone service providers.
68
69. CHART 4.6
RESPONDENTS USING COMPETITIVE MOBILE SERVICE
Table: 4.7
IMPORTANCE REGARDING SERVICE
In Number Percentage
Connectivity 15 12%
Coverage 31 25%
Roaming 26 21%
Local Call 19 15%
All 34 27%
Total 125 100%
Source: Primary data
The above the table shows 12% respondent using the airtel mobile
network connectivity service only. 25% of the respondents are using
coverage packs, 21% of the respondents use roaming service, 15% of the
69
70. respondents use only local call services and another 27% of the
respondents taking all service packages.
70
71. Chart: 4.7
IMPORTANCE REGARDING SERVICE
Table: 4.8
FEATURE OF AIRTEL FORCED PEOPLE SERVICE
In Number Percentage
Advertisement 44 35%
Connectivity 25 20%
Schemes 12 10%
Goodwill 44 35%
Total 125 100%
Source: Primary data
The above the table shows 35% respondent using the airtel mobile
network good advertisement. 20% of the respondents are using
71
72. connectivity, 10% of the respondent’s use schemes, 35% of the
respondents use to their goodwill attract.
72
74. Table: 4.9
FEATURE OF AIRTEL IS BETTER THAN THE PEOPLE’S
PREVIOUS CELLULAR SERVICE
In Number Percentage
Advertisement 31 25%
Connectivity 75 60%
Schemes 19 15%
Total 125 100%
Source: Primary data
The above the table shows 25% respondents using the airtel mobile
network compare previous good advertisement. 60% of the respondents
are using compare previous connectivity, 15% of the respondent’s use
compare previous schemes.
74
75. Chart: 4.9
FEATURE OF AIRTEL IS BETTER THAN THE PEOPLE’S
PREVIOUS CELLULAR SERVICE
Table 4.10
TYPE OF ADVERTISEMENT MOSTLY LIKE BY PEOPLE IN
AIRTEL
In Number Percentage
Audio Visual 106 85%
Audio 16 13%
Print 3 2%
Total 125 100%
Source: Primary data
The above the table shows 85% respondents attractive airtel audio
visual advertisement. 13% of the respondents are attractive airtel audio
advertisement. another 2% of the respondent’s only attractive their print
advertisement.
75
77. TABLE 4.11
CELEBRITY LIKED BY PEOPLE VERY MUCH IN AIRTEL
In Number Percentage
Sachin 69 55%
Sharukh 47 38%
A.R.Rahman 6 5%
Kareena 3 2%
Total 125 100%
Source: Primary data
The above the table shows 55% respondents attractive airtel
advertisement using cricket hero Sachin. 38% of the respondents are
attractive airtel advertisement using bollywood hero Sharukh. 5% of the
respondents attractive Airtel ad. world famous musician A.R.Rahman
another 2% of the respondent’s only attractive Bollywood queen
Kareena.
77
78. CHART 4.11
CELEBRITY LIKED BY PEOPLE VERY MUCH IN AIRTEL
TABLE 4.12
PEOPLE TAKE BENEFITS OF SCHEMES OFFERED BY AIRTEL
In Number Percentage
Yes 106 85%
No 16 13%
Can’t Say 3 2%
Total 125 100%
Source: Primary data
The above the table shows their respondents take benefits of
schemes offered 85% said yes. 13% of the respondents are said no. 2%
of the respondents said can’t.
78
80. CHART 4.12
PEOPLE TAKE BENEFITS OF SCHEMES OFFERED BY AIRTEL
TABLE 4.13
PEOPLE LIKE MOST IN AIRTEL PACKAGE
In Number Percentage
Nokia + Airtel 108 86%
Airtel Magic 6 5%
Airtel Post paid 10 8%
Airtel Broadband 1 1%
Total 125 100%
Source: Primary data
The above the table shows 86% of the respondents using Nokia
with Airtel, 5% of the respondents Airtel Magic service, 8% of the
respondents using post paid service and another 1% of the respondent
only airtel broad band service.
80
82. CHART 4.13
PEOPLE LIKE MOST IN AIRTEL PACKAGE
TABLE 4.14
PEOPLE LIKE THE AIRTEL PLANS
In Number Percentage
Pre paid 100 80%
Post paid 25 20%
Total 125 100%
Source: Primary data
The above the table shows 80% of the respondents would like use
Pre-paid connection, and other 20% of the respondents only use Post paid
connection.
82
84. TABLE 4.15
RESPONDENTS PHONE BOOK IN AIRTEL USERS
In Number Percentage
Less than 30% 75 60%
30% to 70% 28 22%
More than 70% 22 18%
Total 125 100%
Source: Primary data
The above the table shows 60% of the respondent’s phonebook in
nos. less than 30% nos. only. 22% of the respondents phonebook in nos.
30% nos. to 70% nos., and another 18% of the respondents phonebook
nos. more than 70% airtel users.
84
86. TABLE 4.16
THE RESPONDENTS LIKE TO CHEAPEST AIRTEL SERVICES
Service No. of Respondents Percentage
Low cost internet
service
17 13.6%
Free ringtones 23 18.4%
Low cost night time
call charges
30 24%
Rate cutters 55 44%
Total 125 100%
Source: Primary data
The above the table shows 13.6% of the respondent’s like to Airtel
cheapest internet service. 18.4% of the respondents like the company free
ringtones, 24% of the respondents like night time call cheaper charges
and another 44% of the of the respondents like airtel rate cutters..
86
88. TABLE 4.17
THE RESPONDENTS LIKE TO RECHARGE IN AIRTEL
SERVICES
Recharge type No. of Respondents Percentage
Full talk time 50 40%
SMS booster 39 31%
Limited time full
talk time
10 8%
Recharge cards 26 21%
Total 125 100%
Source: Primary data
The above the table shows 40% of the respondent’s like to recharge
full talk time offers only. 31% of the respondents like recharge mostly
SMS booster, 8% of the respondents like recharges limited time offer
recharge and another 21% of the of the respondents like recharge use
recharge cards or easy recharge.
88
89. TABLE 4.17
THE RESPONDENTS LIKE TO CHEAPEST AIRTEL SERVICES
TABLE 4.18
RESPONDENTS OPINION IN AIRTEL SERVICE NO.1 IN INDIA
Opinion No. of Respondents Percentage
Yes 100 80%
No 25 20%
Total 125 100%
Source: Primary data
The above the table shows 80%the respondents feel best opinion
the Airtel service provider is No. 1 in India. Another 20% of the
respondents feel not in No.1, but Airtel performance some better.
89
91. TABLE 4.19
RESPONDENTS OPINION IN AIRTEL CALL CHARGES
Opinion No. of Respondents Percentage
Highly satisfied 34 27%
Satisfied 70 56%
Dissatisfied 22 17%
Total 125 100%
Source: Primary data
The above the table shows 27%the respondents feel best opinion
the Airtel call charges highly satisfied. 56% of the respondents just
satisfied but still Another 17% of the respondents feel dissatisfied in
Airtel calling charges.
91
93. TABLE 4.20
RESPONDENTS OPINION IN AIRTEL OFFERS
Opinion No. of Respondents Percentage
Highly satisfied 58 46%
Satisfied 47 38%
Dissatisfied 20 16%
Total 125 100%
Source: Primary data
The above the table shows 46%the respondents feel best opinion
the Airtel offers highly satisfied. 38% of the respondents just satisfied but
still Another 16% of the respondents feel dissatisfied in Airtel offers.
93
95. CHPTER – V
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS
The data shows that the total sample size of 125 people taken
randomly for the research, 120 person out of then taken mobile with
them. This segment comprise of professions, businessperson, service man
& students.
About awareness of Telecom Company in Salem Town the data
collected shows that 60% of the people knows about all the telephone
companies dealing in Salem Town market, 30% of person knows only
few companies, 5% of person knows only one company, 5% are not
knowing another company.
The segment belong to business like to have Post paid connection.
Whereas students, professional and service persons give their preference
to Prepaid connection.
When the preferences for mobile phone connections were asked,
results drawn that 40% of persons prefer to take AirTel because they
believe in AirTel’s better coverage & cheaper rates after AirTel, 20% of
people opt TATA indicom services because of its cheaper rate and flexible
schemes, then Reliance is only 25% . Airtel is rich in attractive schemes
and plans for business persons and persons related to corporate world.
95
96. SUGGESTION
The Study was conducted in to very vast group of respondents and so
its reflections and interpretations provide a suggestion platform me as:
1. No charge for SMS advertising
2. Advertising should not be over contend, like Advertisements via e-
mail
3. Small jingle and funny massage must be used preferably
4. Approach of Advertising should not be like T.V. Advertising but it
must be in SMS Flash or in funny tone.
It these suggestion and limitations will entertained properly they
should be very brighter. SMS Advertising world semester, Innovative and
creative way of Advertising.
96
97. CONCLUSION
Among its priorities it now counts new economic and social concerns
as the information society develops: national coverage is a major issue
and Airtel intends to play its part to protect the interests of all consumers.
To this backdrop, a new regulatory organisation is emerging. It must
supply regulatory activity with new tools to encourage lasting
competition in the telecommunications sector. It must also contribute to
the development of a more consistent UP west market that is better able
to face up to the challenges of the information society within the context
of globalisation.
After thorough analysis and interpretation of result obtained I studied
overall consumer trends in Airtel Telecommunication Ltd. How people
react to its services and schemes. How company attract its customer by
adopting effective strategies. In the last the conclusion is drawn through
this research that being the biggest and oldest network of mobile
telecommunication in Uttar Pradesh West, having good quality of service,
taking along a big part of people aware about Airtel, it is subsisting hard.
For Airtel connection most of customers are professional and business
segment.
“Good service is the way to retain clients”
97
98. BIBLIOGRAPHY
William G. Zikmund Micheal.D Basic Marketing, Anico west
publishing company.
Richard J.Semenik Gary J.Bamossy A Global perpective,
Principles of marketing, College division south western publishing
company, 1998.
A.K.Phophalia, sarita Sharma, G.R.Bastia, Marketing management
Analysis planning and control, Kanislcha Publisher and
Distributers, New Delhi 1997.
www.airtel.in
www.airtelworld.com
www.researchandmarket.com
www.info-shop.com
www.smartmobs.com
www.yahoosearch.com
www.google.com
98
99. A STUDY ON AIRTEL MARKETING ANALYSIS IN SALEM
TOWN QUESTIONNAIRE
Name :
Address :
Gender :
1. Which age group you belong to?
(a)Below 20 (b)20-30 (c)30-40 (d)40-50 e) above 50
2. What occupation do you have?
(a)Business (b) Professional
(c)Government Employee (d) Student
3. Do you have any mobile connection?
a. Yes b. No
4. Do you know how many telecommunication companies exist in
Salem Town region?
(a) 6 (b) 5 (c) 4 (d) Not confirm
5. If you have to purchase mobile phone connection which company
you will prefer and why?
(a)Airtel (b) Reliance (c) TATA indicom (d)Vodafone
99
100. 6. Which service in importance in Airtel?
(a) Connectivity (b) Coverage
(c) Roaming (d) Local Call e) All
7. Which feature of AIRTEL forced you to used AIRTEL?
a)Advertisements b) Connectivity
c) Schemes d) Goodwill
8. Which feature of AIRTEL is better than your previous cellular
service?
a) Advertisements b) Connectivity c) Schemes
9. Which type of advertisement you most like in AIRTEL?
a)Audiovisual b)Print c) Audio
10. Which celebrity you like very much in AIRTEL?
a) Sachin b) Shahrukh c) Kareena d) A.R. Rehman
11. Have you take benefits of any scheme offered by AIRTEL?
a) YES b)NO
12. Which you like most in AIRTEL?
a) NOKIA + AIRTEL b) AIRTEL MAGIC
c) Postpaid services d) Airtel Broadband
13. You would like to take prepaid connection or Post paid connection?
(a) Prepaid (b) Post paid
14. How many AIRTEL users in your phone book?
a) Less than 30% b)30% - 70% c) More than 70%
15. Which service you like most in AIRTEL?
a) Low cost Internet service b) Free Ringtones
c) Low cost night time call charges d) Rate cutters
16. Which type of recharge cards you like most?
a) Full talk time recharges b) SMS cards
100
101. c) Limited time full talk time d) Recharge cards
17. According to you is AIRTEL is #1 in India?
a) Yes b) No
18. Are you satisfied in Airtel call charges?
a) Highly satisfied b) Satisfied c) dissatisfied
19. Are you satisfied in Airtel Offers?
a) Highly satisfied b) Satisfied c) dissatisfied
20. Your Suggestion ------------------------------------------------------------
101
