A major project report on airtel


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A major project report on airtel

  1. 1. 1SUMMER TRAINING REPORTON“CUSTOMERSATISFACTION”Indian Institute of Tourism and Travel Management, Gwalior(An Organization Ministry of Tourism, Government of India)Submitted ToDr.Monika PrakashChairmain(services)IITTM Gwalior Submitted ByNarendra Kumar KoliEnrollment No.1113033PGDM (services)4thSemester (2011-13)1
  2. 2. 2CERTIFICATEThis is to certify that the project done on “COSUMERSATISFACTION”. Submitted to INDIAN INSTITUTE OF TRAVELAND TOURISM MANAGEMENT GWLIOR by NARENDRA KUMARKOLI in partial fulfillment by the requirement for the award of degree ofPGDM(services) is a bonafide work carried by her under my supervisionand guidance. This work has not been submitted to anywhere else for mydegree/diploma. The original work was carried during 15 May to 10stofJuly 2012 in BHARTI AIRTEL LIMITED.Mukesh GuptaSegment managerGwalior (mp)2
  3. 3. 3SELFDECLARATIONCERTIFICATEI hereby declare that the project entitled “CUSTOMERSATISFACTION”Submitted for the PGDM is my original work and the project has notformed the basis for the Award of any other degree.Signature of the Student: Narendra Kumar KoliPlace: GwaliorDate3
  4. 4. 4ACKNOWLEDGEMENTThe satiation and euphoric that accompany the successful completion of the task wouldbe incomplete without the mention of the people who made it possible. After all,success is the epitome of hard work, severance, undeterred missionary, zeal, steadfast,determination and most of all encouraging guidance. So, immense gratitude, Iacknowledge all those whose guidance and encouragement served as a ³beacon light´and crowned my effort with success.I sincerely thanks Mr. Mukesh Gupta {AIRTEL} LTD. Gwalior for giving opportunity toassociate myself to the India’s largest telecom company and to carry out my projecttitled“CUSTOMERSATISFACTION”4
  5. 5. 5PREFACEThe boom in Indian economy leads to the growth of Telecom Industry with thesignificant expansion. As this project has been undertaken in Bharti Airtel Pvt. Ltd.which is the strongest player in the market among the private players. In this projectresearcher has experienced the customer satisfaction level of the existing customers ofairtel Landline and Broadband. Researcher also experienced about the consumerbehavior and the strategies of the company & sales to maintain the huge customerbase.Researcher has done a extensive market research about the problem and thefactors associated with it. On the basis of the observed data and the analysis certainrecommendations have been given for the future exploration of the organization5
  6. 6. 6TABLE OF CONTENTSTOPIC PAGE(1) INTRODUCTION 07-16Company Profile 07Vision Mission & Values 08Business Area 09-10Product & Services 11-12Competitors in the market 12-15Background of the problem 15Rational of the Study 15The Scope 16(2) REVIEW OF LITERATURE 17-26Customer Satisfaction 19Tools for tracking & measuring Customer Satisfaction 20-23Relationship marketing: The Success of BHARTI 23-26(3) OBJECTIVE OF STUDY 23(4) OBSERVATION, ANALYSIS & DISCUSSION 24-28Data ObservationAnalysis & Discussion(5) CONCLUSION 28(6) RECOMMENDATIONS 29(7) BIBLIOGRAPHY 306
  7. 7. 7INTRODUCTIONBHARTI AIRTEL LIMITED: The Company Profile. Bharti Tele-ventures Limited was incorporated on July 7, 1995, for promotinginvestments in telecommunication services. Its subsidiaries operate telecom servicesacross India. Bharti is India’s leading private sector telecommunications servicesprovider, with a customer base of approximately 17.53 million: 16.33 million mobileand 1.2 million fixed line customers.Bharti Tele-Ventures Limited (a part of Bharti enterprises) have been structuredinto two main strategic business groups - the Mobility Leaders business group and theInfotel Leaders business group. The Mobility business group provides GSM mobileservices across India in 23 telecom circles, while the Infotel business group providesbroadband & telephone services, long distance services and enterprise services. Allthese services are provided under the AirTel brand. The company is the only operatorto provide mobile services in all the 23 circles in India. The company also providestelephone services and Internet access over DSL in 15 circles.7
  8. 8. 8VISIONTO BE GLOABALY ADMIRED FOR TELECOM SERVICES THAT DELIGHTCUSTOMERSMISSIONTo meet global standards for telecom services that delight customers through: Customer service focus Empowered Innovative services Cost efficiencyVALUES Customer: Be responsive towards the needs of thecustomers. People: Trust and respect the employees. Learning: Continuously improve services –innovatively & expeditiously.8
  9. 9. 9 Community & Partners: Be transparent and sensitive in the dealing withallstakeholders.BUSINESS AREA Cellular Services: Bharti has been a pioneering name in the Indian TelecomIndustry. In Delhi itself Bharti launched first mobile service under the name ofAirTel. Today AirTel’s mobile footprint extends across the country in 21Telecom circles. Its service standards compare with very best in the world. Fixed Line Services: Bharti Tele-Ventures became the first private fixed-lineservice provider in India. It is now promoted under the Airtel brand. Recently,the Government opened the fixed-line industry to unlimited competition. Airtelhas subsequently started providing fixed-line services in the six states ie- 5circles of NCR, Haryana, Madhya Pradesh, chattisgadh, Karnataka & TamilNadu. Internet & Broad Band: AirTel Enterprise services bring comprehensivesuits of data technology. It provides DSL Services over optical fibers withdedicated line. So it is 5 times faster than Analogue Connection. It is mostpreferred high-speed internet service (over 2,50,000 subscriber nation wide).9
  10. 10. 10 National long distance Service: To provide National Long Distance(NLD)Services, Bharti has laid 25,000 km of optical fibre with presence in 200 cities.It is also interconnected with all leading cellular operators, fixed line serviceproviders. International long distance Service: To provide this service across AsiaPacific region it has laid i2i submarine cable network along 3,200 km and thelanding stations are Singapore and Chennai.PRODUCTS & SERVICES OFFERED WITH AIRTEL LANDLINE& BROAD BAND10
  11. 11. 11(1) ISDN: Integrated Service Digital Network (ISDN) is a standard, all-digitalaccess technology that allows simultaneous, integrated voice and data capabilities overordinary telephone lines.An ISDN PRI is configured with 30 bi-directional B (Bearer) channels and oneD (Data) channel. It allocates all signaling and call control requirements to the Dchannel, leaving the 30 B channels free for any mix of voice and circuit switched data.ISDN BRI is suitable for both residential and commercial purpose, configuredwith 2 bi-directional B channels and 1 D channel.(2) BROADBAND: With the speed of 512 Kbps AirTel Broadband isapproximately 5 times faster than an analogue connection. Larger data application,faster file transfer, streaming multimedia and heavy duty surfing every thing we canimagine is now easily possible with this facility. Superior server technology and adedicated port provide total security to data, both stored and in transit. Bharti alsoprovide round the clock Customer Support.(3) WiFi: Now we can access the Internet facility wirelessly with WiFi.We can use net anywhere we need it, what only we have to do just login into corporateLAN from any where in the premises. We don’t need to stick to our workstation forusing the Internet facility. There is no need to load DSL driver on PC or laptop, justconnect the PC or laptop to Ethernet port or over WiFi, and we can start surfing.(4) Centrex: Airtel Centrex is also called a virtual EPABX for offices, atvarious locations. Its intercom calling facility (between Centrex lines) lets us call our11
  12. 12. 12colleagues in other branches for free. The Centrex is part of Airtel’s robust high-techswitching system, which assures high reliability and security.SOME OTHER SERVICES:(1) Group Pulsing(2) Roaming on Landline(3) Voice Mail Service(4) Hunting Service(5) 3-Party Conferencing(6) Audio Conference(7) Remote Video Surveillance over the InternetCOMPETITORS IN THE MARKETNow days in the market each and every company has to face a stiff competitionfor its survival. AirTel, which is the strongest brand among the private service providerin the Indian Telecom Industry, has been facing a tough competition by some othertelecom giants like MTNL, Reliance & Tata Indicom.(1) MAHANAGAR TELEPHONE NIGAM LIMITED (MTNL):MTNL was setup in 1986 by Govt. of India to upgrade the quality of telecomservices, expand the telecom network, and introduce new services and to raise revenuefor Telecom department in the key metros like Delhi & Mumbai. It has a strongfinancial base, market share of 13% and customer base more than over 4.75 millionlines.12
  13. 13. 13Govt. of India currently hold 56.25 % stake n the company. Services providedby the company:(i) Basic Services: Plain old Telephone service through digitalized publicswitched telephone network.(ii) Garuda: Technically most advance and most affordable in Delhi. Callrate – 40 paise/min & Rent – 200/- per month(iii) ISDN: For voice, Data & Video.(iv) Internet: PSTN & ISDN dialup Internet Access.(v) Dolphin: GSM based cellular service(vi) Answering machine Service, Leased Circuit & Trunk Service.(2) RELIANCE INFOCOM:Reliance - Anil Dhirubhai Ambani Group, an offshoot of the Reliance Groupfounded by Shri Dhirubhai H. Ambani (1932-2002), ranks among India’s top threeprivate sector business houses in terms of net worth. Reliance – ADA Group’s flagshipcompany, Reliance Communications, is Indias largest private sector information andCommunications Company with over 20 million subscribers.Services provide by the company:(1) Reliance GSM services: Reliance Infocom has launched very oldGSM services in mobility in some of the states like Bihar, Jharkhand, Orissa up, delhietc.(2) Reliance India Mobile:13
  14. 14. 14PAN India network and town coverage.• 80,000 kms of optic fiber backbone.Wireless network covering over 2,400 cities/towns, to expand to over 5,700cities AND 4,00,000 villages by December.• 4,300 Base Transceiver Stations (BTSs) across the country, to increase toaround 8,500 by December.(3) Reliance Broadband:A flexibility to choose the speed from the range of 100 kbps to 8000 mbps. Bonus bandwidth of 100, 300, 600 instead of 64, 212, 524. Charging of net surfing is also available in per minute tariff.TATA INDICOM:Tata indicom is another main competitor of Airtel in the market due its strong presenceof it in the CDMA mobility, broadband and WLL fixed phone segment.Tata Indicom fixed phone: - Tata Indicom offers almost instant phone connections. GetTata Indicom Landline Phone services based on the state of the art Optical FibreCable-based backbone. Enjoy greater voice clarity and say goodbye to excessivebilling.14
  15. 15. 15• Tata Indicom Phone Connections Advantage• • Superior voice clarity• • Instant and hassle - free connections• • Accurate billing• • Secure and tamper – proof lines• • Responsive and friendly service• • 24 x 7 friendly customer serviceBACKGROUND OF THE PROBLEMAs we know that now a days there is enormous competition exist in each areaof market and the circumstances are similar also in the case of Telecom Industry. Toface this competition this is very essential for any of the organization to do a properplanning, implementation and taking proper feedback about the process. By doingthese things any organization might be able to deliver better product, services or thecombination of both.“ To measure the customer satisfaction level of existing users of AirTelThe motive of undertaking such task was quite clear to the researcher.Organization simply wanted to take proper feedback of their customers. They wantedto know what exactly their customers feel about the services of Bharti and about thebrand of AirTel. What are the strong features of AirTel and what are its weaknesses orwhere they lag, by knowing all these facts they could improve their quality of service.15
  16. 16. 16THE RATIONALE OF THE STUDYThere was a time when government had a monopoly in the telecommunication sector.But in the year 1999 deregulation in telecom sector, brought a number of privateplayers, which gave stiff competition in the monopoly market. Telecom Tariff has beenchanged rapidly because of this deregulation. Deregulation has opened up a newmarket for telecom services. Now days in telecom sector there are three types ofservice provider:1. Fixed Landline Service Provider2. Wireless Local Loop Service Provider3. GSM Service Provider4. CDMA Service ProviderTo survive in this competitive market each and every company tries to providebetter service at lowest possible price to the consumer. As we know Bharti providesservices in Fixed Landline and GSM area under its brand Airtel. And Airtel is verystrong brand in the market.By doing this project the researcher will be able to understand what is thepresent perception of the consumer about Airtel landline & Broadband and what is theexact satisfaction level of its existing customers .THE SCOPE16
  17. 17. 17As we know very well that Airtel is market leader among private sector players inIndian Telecom Industry so, there is a huge pressure upon the company (Bharti Tele-ventures Pvt. Limited) to retain its position in the market. BTL is facing severalchallenges from its competitors mainly MTNL, Reliance & Tata Indicom. More overthe main challenge is to retain the present customer base and try to increase it byproviding them better service at affordable price. This project will help the company to know its market reputation. As this project mainly deals with the consumer perception about Airtel and itscompetitors. The organization may utilize this work to focus it customer withgreater perfection. By using this project the organization may find some remedy, if there will beany sort of dissatisfaction about the service amongst the customers.REVIEW OF LITERATURECUSTOMER SATISFACTIONCompany’s first task is to create customers but today customers face a vastarray of product and Brand choices, prices and suppliers. How do customer make theirchoices?We believe that customer’s estimate which offer will deliver the most value.Customers are value maximizers within the bound of search of cost and limitedknowledge, mobility and income. They form an expectation of value and act on it.Whether or not the offer leaves up to the value expectation affects customer’ssatisfaction and their repurchase probability.17
  18. 18. 18Our premise is that buyers will buy from the firm they perceive to offer thehighest delivered customer value and total customer cost.Customer delivered value = (Total Customer value – Total Customer cost). Total customer value is the bundle of benefits customers expect from agiven product or a service. Total customer cost is the bundle of costs customers expect to incur inevaluating, obtaining and using the product and service. Satisfaction is a person’s feeling of pleasure or disappointment resultingfrom comparing a product’s perceived performance and expectations.Many companies are aiming for high satisfaction because customers who arejust satisfied still find easy to switch when better offer comes along. Those who arehighly satisfied are much less ready to switch. High satisfaction or delight creates anaffinity with the brand not just a rational preference. The result is high customerloyalty.Some of today’s most successful companies are raising expectation anddelivering performance to match. These companies are aiming for TCS (TotalCustomer Satisfaction).TOOLS FOR TRACKING AND MEASURING CUSTOMERSATISFACTION18
  19. 19. 19[1] Complaint and suggestion systems: -A customer-centered organization makes it easy for its customers to deliversuggestions and complaints. Many restaurants and hotels provide forms for guests toreport their likes and dislikes. A hospital could place suggestion boxes in the corridors,supply comment cards to exciting patients and hire a patient advocate to handlepatient’s grievances. These information flows provide these companies with manygood ideas and enable them to act more rapidly to resolve problem.[2] Customer satisfaction surveys: -Many companies obtain a direct measure of customer satisfaction by conductingperiodic surveys. They send questionnaires or make telephone calls to a randomsample of their recent customers and ask if they were very satisfied, satisfied,somewhat dissatisfied or very dissatisfied. With various aspects of company’sperformance while collecting customer satisfaction data it is useful to ask additionalquestion to measure the customer’s repurchase intuition, those will normally be high ifthe customers satisfaction is high. It is also useful to measure customer’s willingness torecommend the company and brand to other person. A high positive word of mouthindicates that the company is producing high customers satisfaction.[BHARTI TELEVENTURES PVT. LTD HAS ADOPTED ABOVEMENTIONED STRATEGY TO MEASURE THE SATISFACTION LEVEL OFITS CUSTOMER.][3] Lost Customer analysis: -19
  20. 20. 20Company should contact customers who have stopped buying or who haveswitched to another service provider or supplier to know why this happened. Not onlyit is important to conduct exit interviews when customer first stop buying but also tomonitor the customer loose rate which if increasing clearly indicates that the companyis failing to satisfy its customers.ATTRACTING AND RETAINING CUSTOMERTo improve their relations with their partners in the supply chain, many companies areintent on developing stronger bonds and loyalty with their ultimate customers. In thepast many companies took their customers for granted. Their customers may not havehad many alternatives of supply or all suppliers were equally deficient in the service orthe market was growing so fast that the company did not worry about satisfying itscustomers. Clearly things have changes.THE NEED FOR CUSTOMER RETENTIONThe cost of attracting a new customer is estimated to be 5 times the cost of keeping acurrent customer happy. It requires a great deal of effort to induce satisfied customersto switch away from their current suppliers.Unfortunately most marketing theory and practice centered on the art of attracting newcustomers rather than retaining existing ones. The emphasis traditionally has been onmaking sales rather than bui;lding relationship. The focus has been on reselling andselling rather than on caring for the customer afterwards. Today however, most of thecompanies are recognizing the importance of satisfying and retaining currentcustomers. There are two ways to strengthen customer retention: -20
  21. 21. 21[1] One is to erect high switching barriers. Customers are less inclined toswitch to another suppliers when this would involve high capital cost, highsearch cost and the cost of loyal customer discounts and so on.[2] The better approach is to deliver high customer satisfaction. This makes itharder for competitors to overcome switching barriers by simply offeringlower prices. The task of creating strong customer loyalty is calledRelationship Marketing. Relationship Marketing embraces on those steps thatcompanies undertake to know and serve better their valued individualcustomers.RELATIONSHIP MARKETING: THE KEY OF SUCCESS OFBHARTI AIRTEL PVT. LTD.If you want to study the practical aspect of marketing theories then it can be done onlyby seeing that how organizations implement those theories in their working processdefinitely with some modifications. Here researcher has tried his best to examine theprocess involved in attracting and retaining customers which are the main fundas ofCustomer Relationship Marketing (CRM).There are certain steps involved in customer relationship development process. Suspects: For Airtel everyone who might conceivably buy the landline or itsbroadband connection. The sales team looks hard at the suspects i.e., the needof the customer, budget and the expectation about the service. So, they candetermine who are the most likely prospects.21
  22. 22. 22 Prospects: The people who have a strong potential interest in the Telecomservices and the ability to pay for it. Disqualified prospects: When sales team studies the prospects properly andwhen they find they have poor credit and would be unprofitable companyassuming them as a disqualified prospect.Note: Above three steps are termed as the process of COLD CALLING. First time customers: After Cold Calling sales team visits to the qualifiedprospect then they do detailing to them about the services, try to match theprospect’s need and the product profile. So, this is the process to convertqualified prospects into first time customers. Repeat customers: Now the main process of CRM starts with providing betterAfter sales service to the customers. Company tries to satisfy the customers andbuild a strong relationship with them. They do not want to loose customer dueto their dissatisfaction because according to their view“ A satisfied customer can give you 10 more customer but a dissatisfiedcustomer can cut your 100 prospective customer.” Clients: the company then acts to convert repeat customers into client’speople who buy only from the company in the relevant product category.Some cautions in measuring customer satisfaction level22
  23. 23. 23When customer rates their satisfaction with element of the company’sperformance the company needs to recognize that two customers can reportbeing “highly satisfied” for different reasons. One may be easily satisfied mostof the time and the other might be hard to please but was pleased on thisoccasion. Company should also note that manager and sales people couldmanipulate their ratings and customer satisfaction. They can also try to excludeunhappy customers from the survey. Another danger is that if customers knowthat the company will go out of its way to please customers many express highdissatisfaction in order to receive more concession.OBJECTIVE OF THE STUDYAny researcher must be very clear about the objective of his study orresearch.MAIN OBJECTIVE:To find out whether the existing users of Airtel are satisfied? And which factorsplay important role to satisfy customers.23
  24. 24. 24SPECIFIC OBJECTIVE:To obtain the desired result researcher needed to know:How many customers use the broadband services of Airtel ?• What is the brand image of Airtel in consumers mind?• Which features of Airtel do customers like most?• What are the expectations of consumers from Airtel?OBSERVATION, ANALYSIS & DISCUSSIONDATA OBSERVATION[Q.1] Market Segment: -(a) Commercial (b) ResidentialMarket SegmentStatisticsMarket SegmentFrequency Percent Valid PercentCumulativePercentValid Commercial 43 26.5 26.5 26.524
  25. 25. 25Residential 119 73.5 73.5 100.0Total 162 100.0 100.0Remarks:Here we can see the distribution of Airtel in residential (73.5%) and commercial(26.5%) segment. But it has been also experienced that the penetration of Airtel incommercial area is much higher than residential i.e. approximately 43% in commercialsegment.How did you get aware about Airtel Landline & Broadband services?(a) Banners & Hoardings (b) Sales people(c) Tele calling (d) Newspaper(e) References (f) OthersAwareness about serviceFrequency PercentValidPercentCumulativePercentValid Banners &Hoardings21 13.0 13.0 13.0Sales People 109 67.3 67.3 80.2Tele Calling 3 1.9 1.9 82.125
  26. 26. 26News Paper 6 3.7 3.7 85.8References 1 .6 .6 86.4Others 22 13.6 13.6 100.0Total 162 100.0 100.0Remarks:Among different means of awareness we can see from the graph 67% people get awareabout the services from the sales people. By applying ONE SAMPLE T-TEST on thevariable to check whether it realy depict the population or not, researcher found thesignificance level .000, which is less than .005. Hence it did not occur by chance thedatais significantly important.Do you think brand image of Airtel is stronger than others?(a) Yes (b) No26
  27. 27. 27About Brand Image of AirTelFrequency Percent Valid PercentCumulativePercentValid Yes 155 95.7 95.7 95.7No 7 4.3 4.3 100.0Total 162 100.0 100.0Remarks:When users were asked about the Brand image of Airtel, 96% said its image is strongand 4% said it is not. By applying on the variable to check whether it really depict thepopulation or not, researcher found the significance level .000, which is less than .005.Hence it did not occur by chance the data is significantly important.Voice ClearityFrequency Percent Valid PercentCumulativePercentValid Average 6 3.7 3.7 3.7Good 33 20.4 20.4 24.1Excellent 123 75.9 75.9 100.0Total 162 100.0 100.027
  28. 28. 28Remarks:The above graph shows about voice clarity of airtel landline it is excellent The tatal75.9% customer tells its excellent and only 3.7% are not agree with statement which isvery low so we can conclude it is a excellent feature provided by airtelCONCLUSIONDuring this project researcher went through the working culture of the organization,functionalities of sales team and the identification of market potentiality apart of thedata collection about the given problem. So, as a whole it can be said organization28
  29. 29. 29emphasize more on teamwork, motivating the employees and building the friendlyenvironment. According to the company more than 90% of the business (sales) is donethrough direct marketing by their enthusiastic sales team. Since this project is all aboutcustomer satisfaction & sales about the service so it highly depend on the way ofdelivering services Since Airtel is the strongest service provider among private playersand customers also perceive it as a strongest brand. So it has to maintain a highcustomer base with providing them complete satisfaction. Practicing a properCustomer Relationship Management can only do it and Bharti implement it properly.So why it is now among top names in the world.RECOMENDATIONSSince the project tries to reveal the level of customer satisfaction of Airtel users andimportant factors related with it.29
  30. 30. 30Since the maximum business is done through direct marketing so there should beproper planning and guidelines for the sales team. Motivation in terms of monetary and non-monetary for the sales people is mustand the responsibility of this should be on direct supervisor. It has been also found that there is a large no. of wrong commitments done bysales people with the customers in the market due to the extreme pressure ofsales target, which leads to customer dissatisfaction. Organization must check itimmediately because it is harming the Brand Image of Airtel. There should be a proper and efficient communication channel within theorganization both for employees as well as customers. They should provide much better After Sales Services, because this is adecision making variable for the customers. Billing Process should be more transparent because it leads to the reliabilityabout Brand.BIBLIOGRAPHYWebsites: www.airtel.com30
  31. 31. 31 www.Comtel.com . www.scribd.com www.wikipedia.org www.Codeproject.com www.Projectstoday.com www.Freelancer.com www.Slideshare.net www.airtel.in31