A training project report on airtel

20,204 views

Published on

USE FOR MBA STUDENT

Published in: Business
0 Comments
16 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
20,204
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
1,034
Comments
0
Likes
16
Embeds 0
No embeds

No notes for slide

A training project report on airtel

  1. 1. SUMMER TRAINING REPORT ON “STUDY OF SALES PROMOTION ACTIVITIES AND CONSUMER AGE ON NETWORK at BHARTI AIRTEL LTD” SUBMITTED BY Narendra Kumar Koli Enrollment No. 1113033 PGDM (SERVICES) 3rd Semester (2011-13) Batch Indian Institute of Tourism and Travel Management, Gwalior (An Organization of Ministry of Tourism, Government of India) Under Guidance Mr.Mukeh Gupta Segment Manager Gwalior1
  2. 2. CERTIFICATEThis is to certify that the project done on “STUDY OF SALES PROMOTION ACTIVITIESAND CONSUMER AGE ON NETWORK at BHARTI AIRTEL LTD”. Submitted to INDIANINSTITUTE OF TRAVEL AND TOURISM MANAGEMENT GWLIOR by NARENDRAKUMAR KOLI in partial fulfillment by the requirement for the award of degree ofMBATELECOM is a bonafide work carried by her under my supervision and guidance. Thiswork has not been submitted to anywhere else for my degree/diploma. The original work wascarried during 15 May to 10st of July 2012 in BHARTI AIRTEL LIMITED. Name of Guide Mukesh Gupta Segment manager Gwalior (mp)2
  3. 3. SELF DECLARATION CERTIFICATEI hereby declare that the project entitled “STUDY OF SALES PROMOTION ACTIVITIES ANDCONSUMER AGE ON NETWORK at BHARTI AIRTEL LTD”Submitted for the PGDM is my original work and the project has not formed the basis for theAward of any other degree.Signature of the Student: Narendra Kumar KoliPlace: GwaliorGwalior Date16/8/20123
  4. 4. AcknowledgementThe satiation and euphoric that accompany the successful completion of the task would beincomplete without the mention of the people who made it possible. After all, success is theepitome of hard work, severance, undeterred missionary, zeal, steadfast, determination and mostof all encouraging guidance. So, immense gratitude, I acknowledge all those whose guidance andencouragement served as a ³beacon light´ and crowned my effort with success.I sincerely thank Mr. Mukesh Gupta {AIRTEL} LTD. Gwalior for giving opportunity to associatemyself to the India‟s largest telecom company and to carry out my project titled“STUDY SALES PROMOTION ACTIVITIES AND CONSUMER AGE ON NETWORK at BHARTIAIRTEL LTD”4
  5. 5. PREFACEThe objective of any marketing activity is to sell a product. For this, one must have theright product at the right price, available at the right time and place, through the right promotioncommonly understood as the 4Ps of marketing mix. The fundamental point to be appreciated isthat all these variables must simultaneously fall in place for the success of a product. Take alook around you at all the successful brands and ask the marketing managers the reason forsuccess .They will invariably tell you that it is because the company has been able to get this³mix´ right .If one were to examine these variables carefully one will realize that there are indeedways of ³communicating´ with the consumer. A product talks to the consumer through itsfeatures, packaging and the promise of fulfilling a need .Its pricing tells the consumer whether itis affordable, value for money or premium. Its placement also communicates the valuesassociated with the product. A premium store versus a discount store communicate very differentmessage to the consumer .The promotion of the product also obviously communicates somemessage to consumer. In effect therefore, marketing is all about communication, whetherthrough the product and its packaging, the pricing, the placement and the promotion. We wouldtherefore like to use the term communication mix and highlight the importance of salespromotion in that context5
  6. 6. TABLE OF CONTENTSCHAPTER 1: INTRODUCTION1.1 INTRODUCTION ABOUT THE TOPIC………81.2 OBJECTIVE OF THE STUDY………………..121.3 SCOPE OF THE STUDY……………………..121.4 METHOD OF DATA COLLECTION………..12CHAPTER 2: COMPANY PROFILE2.1 TELECOM INDUSTRIES IN INDIA…………122.2 BHARTI AIRTEL LTD……………………….142.3 VISION OF BHARTI AIRTEL……………….202.4 HISTORY OF THE COMPANY……………..202.5 CORPOATE GOVERNANCE………………..31CHAPTER 3: THE COMPETITIVE AREA3.1 COMPETITORS PROFILE………………....383.2 MARKETING STRATEGY BY AIRTEL…..433.3 PROMOTIONAL STRATEGY…………….463.4 TARGET MARKET SEGMENT……………47CHAPTER 4: ANALYSIS4.1 DATA ANALYSIS …………………………514.2 FINDING…………………………………….534.3 SUGGESTION………………………………544.4 LIMITATION OF STUDY………………….554.5 CONCLUSION………………………………564.6 BIBLIOGRAPHY……………………………576
  7. 7. CHAPTER -1 INTRODUCTION7
  8. 8. 1.1 INTRODUCTION ABOUT THE TOPICThis project is made on the project title” STUDY OF SALES PROMOTION ACTIVITIES andCONSUMER AGE ON NETWORK at BHARTI AIRTELThe purpose of this project is to knowabout the use of mobiles and the need of sales promotional activities and to know what are thepromotional activities company follow to increase the sale. Now a day‟s mobile service hasbecome a necessary service. In field of marketing many kind of survey are conducted by Airteltime to time for promotion awareness.WHAT IS SALES PROMOTION?Sales promotion describes promotional methods using special short-term techniques to persuademembers of a target market to respond or undertake certain activity. As a reward, marketers offersomething of value to those responding generally in the form of lower cost of ownership for apurchased product (e.g., lower purchase price, money back) or the inclusion of additional value-added material (e.g., something more for the same price).Sales promotions are often confused with advertising. For instance, a television advertisementmentioning a contest awarding winners with a free trip to a Caribbean island may give thecontest the appearance of advertising. While the delivery of the marketer‟s message throughtelevision media is certainly labeled as advertising, what is contained in the message, namely thecontest, is considered a sales promotion. The factors that distinguish between thetwo promotional approaches are:1. Whether the promotion involves a short-term value proposition (e.g., the contest is onlyoffered for a limited period of time), and2 The customer must perform some activity in order to be eligible to receive thevalue proposition (e.g., customer must enter contest). The inclusion of a timing constraint and anactivity requirement are hallmarks of sales promotion Sales promotions are used by a wide rangeof organizations in both the consumer and business markets, though the frequency and spendinglevels are much greater for consumer products marketers. One estimate by the PromotionMarketing Association suggests that in the US alone spending on sales promotion exceeds that ofadvertising.8
  9. 9. SALES PROMOTION TECHNIQUES OF COMPANY  Good Advertising. Effective Incentive Policy.  Good services.  Wide & Deep Distribution System.  Decorating Retailers shop by display board, dealers board etc.  Posters.  Banners.TYPES OF SALES PROMOTION Sales promotion can be classified based on the primary target audience to whom the promotionis directed. These include:  Consumer Promotion  Trade Promotion  Sales force PromotionCONSUMER SALES PROMOTIONConsumer sales promotions encompass a variety of short-term promotional techniques designedto induce customers to respond in some way. The most popular consumer sales promotions aredirectly associated with product purchasing. These promotions are intended to enhance the valueof a product purchase by either reducing the overall cost of the product (i.e., get sameproduct but for less money) or by adding more benefit to the regular purchase price (i.e., getmore for the money). While tying a promotion to an immediate purchase is a major use ofconsumer sales promotion, it is not the only one. As we noted above, promotion techniques canbe used to achieve other objectives such as building brand loyalty or creating productawareness. Consequently, marketer‟s promotional toolbox contains a large variety of consumer.There are several possible tools that can be used for consumer promotions. Some of the moreimportant ones are:9
  10. 10.  Sampling Price-off Quality deals Banded offers In-product gift Out- product gift Coupons Consumer contestsTRADE SALES PROMOTIONSAs note in the Promotion Decisions Tutorial, certain promotions can help ³push´ a productthrough the channel by encouraging channel members to purchase and also promote the productto their customers. For instance, a trade promotion aimed at retailers may encourage retailers toinstruct their employees to promote a marketer‟s brand over competitor‟s offerings. WithThousands of products competing for limited shelf space, spending on trade promotion is nearlyequal that spent on consumer promotions. Many sales promotions aimed at building relationshipswith channel partners follow similar designs as those directed to consumers includingpromotional pricing, contests and free product. In addition to these, several other promotionalapproaches are specifically designed to appeal to trade partners.TECHNIQUES USED IN TRADE PROMOTION  On-consignment sales  Dealer contests  Dealer gifts  Display contests  Point of sale material  Shop board painting  Dealer discounts  Trade fair participation  Dealer meets10
  11. 11.  Cooperative advertisingADVANTAGES AND DISADVANTAGES OF SALES PROMOTIONSales Promotion techniques yield results that many other marketing communication elementscannot achieve .For example it can turn around a sales trend in the short run, help introduce anew product by encouraging consumer and retail acceptance, reinforce message driven byother communication -mix element, etc.Some of the benefits of sale promotion:  Sales promotion produces result by stimulating people to act - to try, to buy, to buy more, or to buy more often. It can lead to trial, generate excitement, encourage rein peat purchase, attract switchers, etc. It is especially helpful in situations where there is extreme pressure to increase sales eg.at the end of the year when there are shortfalls in budgeted sales.  It produces immediate results. While advertising or public relation act as an investment producing sales in the long run, sales promotion works during a definite span of time. Most of the sales come during the sale promotions period itself. Very often, if the promotion is successful, one can get results within hours, days or weeks.  It can prevent competitor entry or offset competitor promotions and thus help maintain the brands current market share.  Sales promotion techniques directed at channel members or sales force can gain channel support and involvement and help ³push´ the product. It helps in getting shelf space and merchandising benefits at the retail level, clearing off excess inventory, motivating sales people to find new contacts etc .Sales promotion is relatively easy to design and implement. It is possible to calculate costs effect on sales and sometimes even on competitor sales.DISADVANTAGES OF SALES PROMOTION  Most sales promotion is used for short-term results. Any excessive use can shift the focus on short-term marketing planning that acts only at the behavioral level.11
  12. 12.  Increasing sales promotion activities has led to clutter, leading companies to cut each other and thus eroding the bottom line. In mature markets sales promotion does not do much in attracting new customers but only switchers who are dear prone1.2 OBJECTIVE OF STUDYPrimary research objective:-To study and interpret the sales promotion schemes running by airtel in jaipur zone. and to knowthat how the consumer can be retain for maximum time on same network.Secondary research objective:-  To determine the most popular telecom brand  To determine the average age on consumers on same network  To determine the best sales promotion scheme  To determine the consequences of current schemes1.3 SCOPE OF STUDYThe Scope of the Research study would include the geographic & Demographic region ofgwalior.The research targets the retailers and distributors who deal into telecom services and thetime period of the survey is from 3May -20 June2010.1.4 DATA COLLECTION METHODPrimary method: - Data was collected from respondents through direct interaction and throughpersonal meetings.Secondary method: - External study data has also been used through internet. And throughnewsletters & journals2.1 TELECOM INDUSTRY IN INDIAIndian telecom sector, like any other industrial sector in the country, has gone throughmany phases of growth and diversification. Starting from telegraphic and telephonic system inthe 19th century, the field of telephonic communication has now expanded to make use ofadvanced technologies like gsm, cdma, and wll to great 3g technology in mobile phones. day byday, both the public players and the private players are putting in their resources and efforts toimprove the telecommunication technologies so as to give maximum to their customers.12
  13. 13. the telecom industry of India is on the edge of becoming the second biggest telecom sector in theworld with an overall compactness of telecommunications of up to 4789%. in the year 2009, theindustry attracted subscribers of over 562.21 million which was 35% greater than its previousyear, as per telecom regulatory authority of India (trai) report. the Indian telecom industryregistered annual revenues of over us$ 8.57billion in2009triggered by the revival in incomes fromlandline and mobile services. by 2014 the industry is anticipated to surface as the highest elementin the nations gdp by contributing up to 15.5%.currently, the telecom industry is on anexpansion spree and is adding 9-11 million cellular phone subscribers per month. With this pacethe sector is estimated to cover more than half of the nations population by 2012 .2010 budgettelecom industry expectations are re-introduction of tax exemptions in context of system rolloutsin rural districts and to telecom infrastructure service providers, tax relief to businessesundergoing reformatting mentioned in provisions under section80ia (12a) by the finance act,2007special additional duty (sad) compensation, accessibility of cenvatcredit in case of relocation ofthe business, tariffs of not up to 0.5-2% and explanation on tax reduction of entire spectrumchargeGSM MOBILE MARKET SHARE IN INDIA -1. Bharti Airtel: 121.7million (30.86%)2. Vodafone Essar: 94.1 million (23.87%)3. IDEA: 59.8million (15.19%)44. BSNL: 59.million (15.08%)5. Aircel: 33.0 million (838%)6. Reliance Telecom: 15.7million (4.0%)7. MTNL: 4.6million (1.17%)8. Loop Mobile: 2.7million (0.9%)9. Uninor: 2.5million (0.64%10. STel: 0.5million (0.13%)Total Users: 395.3 million13
  14. 14. 2.2 BHARTI AIRTEL LTDTelecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group hasa diverse business portfolio and has created global brands in the telecommunication sector.Bhartihas recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Martfor the cash & carry business. It has successfully launched an international venture withELRothschild Group to export fresh agri products exclusively to markets in Europe and USA andhas launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, worldleader in financial protection and wealth management.Airtel comes from Bharti Airtel Limited;Bharti Airtel is one of the leading alternative providers of telecommunications services in Indiaand the first private telecom services provider with footprint in all the 23 telecom circles. BhartiAirtel since its inception has been at the forefront of technology and has steered the course of thetelecom sector in the country with its world class products and services. The businesses at BhartiAirtel have been structured into three individual strategic business units (SBUs) - MobileServices, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile& fixed wireless services using GSM technology across 23Telecom circles while the AirtelTelemedia Services business offers broadband &telephone services in 94Cities. The Enterpriseservices provide end-to-end telecom solutions to corporate customers and national &international long distance services to carriers. All these services are provided under the Airtelbrand .Airtel comes from Bharti Airtel Limited, one of Asians leading integrated telecomservices providers with operations in 18 countries across Asia and Africa. Bharti Airtel since itsinception has been at the forefront of technology and has pioneered several innovations in thetelecom sector. The company is structured into four strategic business units - Mobile, Telemedia,14
  15. 15. Enterprise and Digital TV The mobile business offers services in India, Sri Lanka andBangladesh. TheTelemedia business provides broadband, IPTV and telephone services in89Indian cities. The Digital TV business provides Direct-to-Home TV services across India. TheEnterprise business Provides end-to-end telecom solutions to corporate customers and nationaland international long-distance services to Telco‟s. Airtel was born free, a force unleashed intothe market with a relentless and unwavering determination to succeed. A spirit charged withenergy, creativity and a team driven ³to seize the day´ with an ambition to become the mostglobally admired telecom service. Airtel, in just ten years of operations, rose to the pinnacle toachievement and continues to lead. As Indias leading telecommunications company Airtel brandhas played the role as a major catalyst in Indias reforms, contributing to its economicresurgence.15
  16. 16. CHAPTER-2 COMPANY PROFILE16
  17. 17. COMPANY PROFILE -Date of Establishment1995Revenue6716.88(USD in Millions)Market Cap1062548.9208608( Rs. in Millions )Corporate Address-Aravali Crescent ,1 Nelson Mandela Road,Vasant Kunj Phase2 NewDelhi-110070, DelhiChairperson- Sunil Bharti MittalMD- Sunil Bharti MittalDirectors- Ajay Lal, Akhil Gupta, Arun Bharat Ram, Bashir Currimjee, Chua Sock Koong,Craig Ehrlich,Deven Khanna, Lim Chuan Poh, Manoj Kohli, Mauro Sentinelli, N Kumar, Nikesh Arora, PaulOsullivan, Pulak Chandan Prasad, Quah Kung Yang, Rajan Bharti Mittal,Rakesh Bharti Mittal,Sarvjit Singh Dhillon, Sunil Bharti Mittal, Tan Yong Choo, VijayaSampathBharti Airtel,incorporated on July 7, 1995 is the flagship company of Bharti Enterprises. The Bharti Grouphas a diverse business portfolio and has created global brands in the telecommunication sector.Bharti Airtel is Asia‟s leading integrated telecom services provider with operations in India andSri Lanka. Bharti Airtel has been at the forefront of the telecom revolution and has transformedthe sectCompany Secretary-Vijaya SampathBankers Auditors-SR Batliboi & Associates17
  18. 18. Business Divisions-The enterprise services group includes units for both long-distance carriers and for corporateclients. Bharti Airtel has nearly 29 million total customers -- approximately more than27millionGSM mobile and 1.6 million fixed-line customers. The company was founded asBharti Tele-Ventures in 1995 and changed its name in early 2006 to Bharti Airtel Limited. It is aunit of Indian conglomerate Bharti Enterprises)Sunil Bharti Mittal (Chairman and GroupManaging Director)This highly innovative company created telecom history when it farmed outits network management to experts Nokia and Ericsson, and set a trend in the global cellularindustry. Last year, Vodafone gave the company a vote of confidence by acquiring 10% mostlyfrom early Bharti investor Warburg Pincus. This year, Bharti will offer its second overseasservices after the Seychelles. It acquired a license for tax haven Jersey, in the Channel Islands,and is looking for more. It also plans to spend $2billion this year to double the size of its networkand cover 50%of Indias population, up from40% currently. The group offers high speedbroadband internet with a best in class network. With Landline services in 94 cities we help youstay in touch with your friends & family and the world.Getworld class entertainment withIndia‟s best direct to home (DTH) service digital TV in more than 150 cities.Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largestmobile service provider in the country, based on the number of customers.18
  19. 19. Discover the magical experience of digital entertainment with Airtel. From DVD quality pictureand sound, the best and widest variety of channels and programmes to the best on-demandcontent on Airtel Live, your TV viewing experience change forever with digital TV from Airtel!Enterprise Services provides a broad portfolio of services to large Enterprise andCarrier customers. This division comprises of the Carrier and Corporate business unit. EnterpriseServices is regarded as the trusted communications partner to Indias leading organizations,helping them to meet the challenges of growth.Airtel MoneyAirtel has started a new mCommerce platform called Airtel Money with collaboration withInfosys and Smart Trust (now Giesecke & Devrient). It was launched on April 5, 2012, inInfosys Campus of Bangalore. with the help of Airtelmoney,users can transfer money, pay billsand other financial transactions using mobile phone19
  20. 20. 2.3 VISION OF BHARTI AIRTEL -By 2010 Airtel will be the most admired brand in India: Loved by more customers Targeted bytop talent Benchmarked by more businesses2.4 HISTORY OF THE COMPANYBharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited liabilityunder the Companies Act, for promoting telecommunications services. Bharti Tele-Venturesreceived certificate for commencement of business on January 18,1996. The Company was initially formed as a wholly-owned subsidiary of Bharti TelecomLimited. The chronology of events since Bharti Tele-Ventures was incorporated in 1995 is asfollowsCalendar year & Events1995  Bharti Cellular launched cellular servicesAirTelin Delhi199620
  21. 21.  STET International Netherlands NV, or STET, a company promoted by Telecom Italia,Italy acquired a 20% equity interest in BhartiTele-Ventures Bharti Telenet launched cellular services in Himachal Pradesh1997  British Telecom acquired a 21.05% equity interest in Bharti Cellular  Bharti Telenet obtained a license for providing fixed-line services in Madhya Pradesh circle  Bharti Telecom and British Telecom formed a 51% :49% joint venture, Bharti BT, for providing VSAT services1998 Bharti Telecom and British Telecom formed a 51% :49% joint venture, Bharti BTInternet for providing Internet services  First Indian private fixed-line services launched in Indore in the Madhya Pradesh circle on June 4, 1998 by Bharti Telnet thereby ending fixed-line services monopoly of Dot(nowBSNL)1999  Warburg Pincus (through its investment company Brentwood Investment HoldingsLimited) acquired a 19.05% equity interest in Bharti Tele-Ventures  Bharti Tele-Ventures (by acquiring a 63.45% equity interest in SC Cellular Holdings) acquired an effective 32.36% equity interest in Bharti Mobile (formerly JT Mobiles), the cellular services provider in Karnataka and Andhra Pradesh circles  New York Life Insurance Fund, or NYLIF, acquired a3% equity interest in BhartiCellular2000  Bharti Tele-Ventures acquired an effective equity interest of 40.5% in Bharti Mobinet(formerly Sky cell Communications), the cellular services provider in Chennai  Bharti Tele-Ventures acquired a30.2% equity interest of Telecom Italia in BhartiTelenet and 18.8% from Bharti Telecom thereby making Bharti Telnet a 100%subsidiary of Bharti Tele Ventures21
  22. 22.  SingTel (through its investment company Pastel Limited) acquired STETs 15.3% equityinterest in Bharti Tele-Ventures  Bharti Tele-Ventures acquired an additional effective41.64% equity interest in BhartiMobile (by acquiring the remaining36.55% equity interest in SC Cellular) resulting inBharti Tele-Ventures holding an effective74 % equity interest in Bharti Mobile.2001  Bharti Tele-Ventures acquired NYLIFs 3% equity interest in Bharti Cellular  Bharti Telesonic entered into a joint venture, Bharti Aqua net, with SingTel for establishing a submarine cable landing station at Chennai  Bharti Tele-Ventures issued additional equity for approximately US$ 481.30 million to SingTel, Warburg Pincus, AIF group, IFC, NYLIF, and See jay Cellular and BhartiTelecom  Bharti Cellular acquired a 100% equity interest in Bharti Mobitel (formerly Spice Cell),the cellular services provider in Kolkata  Bharti Tele-Ventures acquired 85% and 1 5% in Bharti Telespatial from Bharti Telecomand Intel, respectively  Bharti Tele-Ventures acquired a 44 % equity interest in Bharti Cellular from British Telecom, thereby making Bharti Cellular its 100% subsidiary  Bharti Tele-Ventures acquired an additiona l49% equity interest in Bharti Mobinet from Millicom International and BellSouth International, thereby owning 89.5% equity interest in Bharti Mobinet, which was further increased to 95.3% following an issuance of additional equity shares by way of rights issue  Punjab license restored to Bharti Mobile by the DoT and migration to NTP – 1999 accepted  Bharti Cellular entered into license agreements to provide cellular services in eight new circles following the fourth operator cellular license bidding process  Bharti Telenet entered into license agreements to provide fixed-line services in the Haryana, Delhi, Tamil Nadu and Karnataka circles  Bharti Telesonic entered into a license agreement with the DoT to provide national long- distance services across India22
  23. 23.  Bharti Aqua net, Bharti Telesonic and Bharti Cellular entered into license agreements with the DoT to provide ISP services in India  Bharti Telesonic launched national long distance services under the brand name of India One  Bharti Telnet launched fixed line services in Haryana under the brand name of TouchTel 2002  Comes out with issue of 18.53crore equity shares through book building route with afloor price of Rs45 per share, received bid for 18.55crore shares. Through the issue, it becomes the first company in India to come out with 100% book building issue  Issue price fixed at Rs45per share, floor price fixed by the company. Raises Rs834 crore  Shares listed on BSE, NSE and DSE, opens at 11% premium to its issue price of Rs 45  Enters into a 5 -year agreement with Escotel and ETL of the Escorts group to contractleased line connectivity for its cellular operations  Mr. Ravi Akhoury ceases to be Director of Bharti Tele  DoT grants ILD Telephony License to Bharti Telesonic, subsidiary of the company  Signs MoU with Telia AB to buy out their 26 % stake in Bharti Mobile  Ties up with SSC (Secondary School Certification) Board, Hyderabad, where Bharti will announce SSC results to its customers on their mobile phones  ICICI Bank ties up with Bharti for pre-paid mobile cards via ATMs  Bharti forays into Mumbai with offers  Alpine International Ltd. and ELM International Ltd. acquire shares of Bharti Tele- Ventures  Sunil Mittal, Chairman & Managing Director of the company, bags Businessman of the year award by Business India2003  Airtel breaks interconnectivity with Tata Teleservices in Andhra Pradesh Circle  Company accorded its approval for amalgamation of its subsidiary companies viz: BhartiTelenet Ltd, Bharti Telesonic Ltd, Bharti Broadband Networks Ltd and Bharti Comtel Ltd through scheme of Amalgamation. The merged entity would be renamed as Bharti Infotel Ltd23
  24. 24.  Air Tel launches Local direct dialing facility in Chennai circle  Mobilizes5 m long term foreign currency borrowings for expansion of cellular operations  Bharti Cellular unveils Care Touch service  Bharti Groups cellular brand Airtel has unveiled free multimedia messaging services (MMS) for its customers. The company has also rolled out pan-India GPRS (General Packet Radio Services) for its corporate subscribers  Launches its `India One Meet press audio-conferencing service  Punjab, Haryana get free incoming calls from Airtel  AirTel provides SMS facilities to hearing impaired in Chennai  Goa, Maharashtra gets voice portal services by Bharti Cellular-Launches free additional connection to its new subscribers in New Delhi  Mr. Sin Hang Boon and Mr. Wong Hung Khim have resigned from the Board of Directors of Bharti Tele Ventures Ltd with effect from February27, 2003.  Airtel provides SMS cricket updates  Bharti Mobinet Ltd, the Bharti group company that provides the AirTel mobile service inChennai, today launched its GPRS (General Packet Radio Service) network and an MMS (multimedia messaging) on the GPRS platform  AirTel unveils new ring tones for Karnataka cellular market  AirTel Subscribers exceed 3 Million mark  AirTel unveils RAD system  Mr. P M Sinha resigns from the Board of Directors of the Company with effect fromMarch31,2003.  Bharti TeleVentures announces the completion of merger with Bharti Mobitel  Bharti Mobitel Ltd. merged with Bharti Cellular Ltd. AirTel reintroduces Mobile 2 Mobile offer for Karnataka customers  AirTel, Touchtel jointly offer freeTouchtel land line for post-paid Airtel connection  AirTel rolls out voice mail service for pre-paid customers  AirTel unveils new scheme for pre-paid customers giving away free talk time worth Rs10crore  Airtel surpasses 4 lakh subscriber base in Karnataka  Bharti announces new tariff plan AirTel 201224
  25. 25.  Offers 0-1-2, a new cellular package for the customers, which means zero charges on incoming calls, Re 1 on mobile-to-mobile outgoing calls, Rs2 on mobile-to-mobile STD calls  Rolls out Airtel messenger service  AirTel offers bundled handset, connection package for Rs 5715  Airtel slashes SMS rates to60 paisa; excludes Delhi and Mumbai  Bharti cellular, wholly owned subsidiary of Bharti Tele-Ventures, increases its stake to100% in Bharti Mobile  Iinks distribution pact with Hathaway Cable. With this alliance, Bharti is said to be the first telecom firm to step into television distribution services  Six cell operators move over from Bharti to VSNL  Airtel augments cellular coverage in TN by including Arcot & Walajapet in its network  Airtel ties up with Coke in Chennai to sell its Magic prepaid cards  AirTel embarks on network expansion in Hyderabad  Airtel unveils India One Long Distance Calling Card  AirTel introduces unified tariff package in TN, Chennai  Airtel becomes front runner in Karnatakas mobile services market  Bharti Tele launches Always on service to its subscribers  SBI, AirTel announce EMI offer at Rs 299  Bharti and MTV join hands to launch new SIM card  AirTel unveils new post-paid scheme at zero rental  AirTel launches `Happy Plan in AP  Airtel emerges as the highest selling pre-paid card  Airtel join hands with Alcatel & Videocon to launch new scheme  AirTel service provider touches 5 lakh customers in Punjab  Airtel offers5 new services for its customers in Mumbai  Bharti launches first dual band network in Delhi  Gets 14th place among top25 Cos in India  Bharti Mobile crosse 4 lakh mobile subscribers in AP  Airtel holds top position in terms of dealer penetration  Prof. V S Raju has been inducted on the Board of Directors of the Company.25
  26. 26.  Touchtel launches SMS service in fixed line phones in Karnal, Panipat  AitTel unveils special offers in Kerala  AirTel launches InnoWest for the western region  Bharti Tele-Ventures enters into an agreement with Telesystem (Mauritius) Pvt. Ltd  Airtel slashes out going sms price to30ps  AirTel on December 16,2003 announced the launch of expense tracker service, which provides customers the option of tracking their day-to-day expenses on a daily or monthly basis. To avail of this service, the customer should register himself by sendingEXP REG your mail ID{gt} to3020. This service will allow a user to track expenses,while on the move by sending an SMS. Each SMS sent to 3020 would cost Rs3.  AirTel introduces MTV Club Card in Chennai2004  Bharti unveils new card for Mecca pilgrims  AirTel enrolls 50,000 customers in its mobile service in60 days  Launches WAP enabled portal Service in Kerala  Bharti Cellulars AirTel has extended its mobile connectivity to Karaikkal, Nagur,Mannargudi and Kovilpalayam in Tamil Nadu circle.  Airtel customer base touches new high of 5 lakh mark in Andhra Pradesh  Mobile service provider AirTel is launching its first ever MMS (Multi Media service) downloads in Tamil. The launch of this service has been timed to coincide with Pongal.  AirTel tie up with MAA TV  Airtel launches Rs50 pre-paids recharge  AirTel launched a family pack for its post-paid customers in Chennai on January 29.According to a press release, the family pack may have a maximum of 10 membersSpread across the country. The combined basic plan fixed charges/rental of all family membersin the pack will have to be equal to Rs450 but less than Rs 1000 for the family450 pack andabove Rs 1000 for the family 1000 pack. The offerings under family pack 450 include 15freemobile to mobile STD minutes within the family, 50 free local calling minutes to each familymember, calls within the family in same circle at50 paisa per minute, 25free local SMS and onesubscription alert service free for 3months.  Bharti Tele-Ventures enters into a three year service agreement with Ericsson26
  27. 27.  Bharti Tele-Ventures (BTVL) has signed and received unified access service license to provide GSM services in five circles including Uttar Pradesh (East), West Bengal &Andaman Nicobar, Orissa, Bihar and Jammu & Kashmir. The license has been granted to Bharti Cellular Ltd (BCL), the cellular arm and subsidiary of BTVL.  Airtel announces the signing of the first-ever bilateral roaming agreement between an Indian mobile service provider and its counterpart in Pakistan. This facility will be available to pre-paid as well as post-paid customers. AirTels roaming agreement is with Mobil ink, the only GSM cellular service provider in Pakistan  Acquires switching systems from Tekelec that will give a technological edge to the company  Bharti Tele-Ventures Ltd signed an information technology outsourcing deal with InfoTech major IBM, estimated to be in the range of 0-750 million for a ten-year period.  Jayant Khosla, new chief executive officer, MumbaiSigns MoU to join the South East Asia - Middle East - Western Europe 4(SEA-ME-WE-4)consortium along with 15 other global telecom operators.  Bharti Tele-Ventures has struck a deal with Shyam Telecom to buy out the latters 67.5 per cent stake in cellular services company Hexacom for Rs430 crore.  Bharti Tele garners 0 m via FCCBs  Samsung India Electronics Limited has tied up with cellular operator Bharti for bundling its mobile handsets with a connection.  The Bharti group finalized an Rs500-crore deal to share its national long-distance (STD) network with VSNL in a first-of-its-kind accord between two top telecom service providers in a bid to optimize capacities in the NLD segment.  Internet gateway and services provider, Videsh Sanchar Nigam Ltd. (VSNL) has signed a right to Use (RoU) agreement to deploy mobile telephony major, Bharti Tele-Ventures „existing National Long Distance (NLD) backbone.  Airtel offers talk time transfer service  Airtel has announced money-back guarantee offer in case of call drop or poor network experience for its subscribers  Bharti launches 2-in-1 card27
  28. 28.  Airtel launched two-way international roaming and GPRS for prepaid customers in the Maharashtra and Goa circles  Indias leading cellular company Bharti Tele-Ventures has bagged the Asian Mobile News operator of the year award in India and the subcontinent  Bharti Tele-Ventures Ltd has awarded a million equipment contract to Swedish telecoms company Ericsson  Bharti Televentures announced formation of a new strategic business unit to offer various telecom and IT services through a single contact  Bharti Televentures unveiled a mobile portal featuring sports, entertainment and news among others  Airtel ties up with Micro Tech to set up Mcops vehicle security system  Bharti Tele-Venture on July 19 launched ring back tone service which is a personalized mobile music service where the caller hears songs and other sound clips instead of the traditional switchboard ring-ring tone  Airtel, a private telecom services provider, has commissioned its first24x7 customer service centre in Andhra Pradesh Airtel unveils Rs 199 pre paid card  AirTel join hands with NMIMS to offer executive MBA programme  AirTel introduces new scheme for hearing impaired in Maharashtra & Goa  AirTel inks pact with JP Mobile  AirTel unveils first virtual calling cards in India  BTVL rolls out EDGE services in Bangalore  Airtel rolls out Full Talk time Advantage card  Airtel rolls out Wi-Fi services in Mumbai  BTVL launches new Airtel Broadband Friendly Offer  Airtel launches GPRS services for pre-paid customers  Airtel partners with ITPO to set up Wi-Fi network in Delhi  Airtel launches EDGE services and a new pre-paid plan for Chennai  Airtel introduces LAS in Karnataka2005  Airtel launches video services for its GPRS customers on February 22,200528
  29. 29.  Airtel unveils new TV ad featuring Sachin, Sharukh  Bharti Tele-Ventures launches telecom network in Andaman & Nicobar  BTVL unveil fixed line, broadband services  Bharti inks5 -m deal with Nokia for rural network expansion  Bharti Tele Ventures Ltd has announced that Airtel, ICICI Bank & VISA have joined hands to launch mChq - a revolutionary new service - a credit card on the mobile phone  Bharti Tele Ventures - Airtel introduces BlackBerry Connect in India  Bharti Tele Ventures announces agreement with Vodafone  Airtel unveils free flight offer  Airtel unveils starter pack  Bharti Tele-Ventures launches under sea cable system2006  Airtel unveils Re 1 STD plans  Airtel launches NetXpert.  Airtel launches Post2 Pre recharging service on April 04,2006  Airtel sets up customer centre  Mobile service provider Airtel today announced the launch of `Save My Phone Contact „service for its pre-paid and post-paid customers in Delhi  Bharti Tele Ventures bags Wireless Service Provider of the Year & Competitive Service Provider of the Year awardsSunil Mittal bags CEO of the Year award  Cellebrum join hands with Airtel  Airtel Mega unveiled in Coimbatore  Airtel joins hand with Microsoft  Bharti Airtel Ltd has informed that Microsoft and the Company announced a strategic partnership that will offer a range of software and services for small and medium businesses (SMBs) in India.  Bharti Airtel Ltd on Nov8, announced a first-of-its-kind alliance with the Adani Group for establishing an end-to-end modern telecommunication network infrastructure for the latter‟s29
  30. 30.  Multi-sector special economic zone (SEZ), located near Mundra Port in Kutch district of Gujarat.2007Bharti Airtel, telecom major, has come out with a slew of initiatives including buyingOutSingTel‟s50 per cent stake in joint venture undersea cable company Network i2i for 0million.  Bharti Airtel on Feb 11, has been awarded QCI-DL Shah National Award on Economics of Quality.  Bharti Airtel Ltd has announced the following changes in the operational leadership structure and roles in the Company effective April 01,2007  Bharti Airtel Ltd on April 01,2007 , has announced the reduction in International Long Distance Tariffs (ISD) for all its mobile customers in India.  Airtel signs agreement with HTC for touch screen mobile2008  Nokia Siemens Networks on Jan3declared that it has been awarded a multi million euro contract from Bharti Airtel Ltd for deployment of a single interactive voice response (IVR) platform across23 circles. The three-year turnkey contract comprises designing, planning, systems integration and optimization services to raise overall customer experience. The new IVR solution will enable Airtel to deliver services such as voices, televoting, call management services, caller ring back tone and voice portal on a faster time-to-market basis and, therefore, reduce OPEX costs.  Bharti Airtel Ltd on February 1 2008 has announced that it has achieved the60 million customer marks. This landmark has catapulted Bharti Airtel into the club of top mobile operators in the world in terms of subscriber base. The 60 million customer base covers mobile as well as fixed line and broadband customers.  Bharti Airtel tied up with US-based Apple Inc to bring the popular GSM-based iPhone in the country.  Bharti Airtel Ltd has forged a technology alliance with Infosys Technologies Ltd to launch its Direct-to-Home (DTH) television services. Infosys, through its30
  31. 31. digital convergence platform, will offer a suite of products including devices, application servers and interactive applications for Airtels DTH services. 2009  Bharti Airtel HAS signed a five-year managed services deal valued at 0 million withAlcatel Lucent for its fixed-line and broadband operations.  Bharti Airtel launched the Airtel Advantage initiative. The initiative is aimed at offering the added advantage to Airtel customers to be in touch with each other at an affordable rate of 50 paisa per minute, be it a national long distance call (STD) or local call.  In order to create products and services for the small, medium and large enterprises, Bharti Airtel and Cisco announced a strategic business alliance. The alliance would combine the strengths of Airtels network service and Cisco Internet Protocol (IP) technologie  Bharti Airtel - Airtel and mChek announce milestone of One Million users; introduce a broad range of new mCommerce services.2010  Bharti Airtel submitted its bid for 3G spectrum, the auction for which starts from April l9th2.5. CORPOATE GOVERNANCEIntegrity and Ethics  The partners will conduct all its dealings in a very ethical manner and with the highest business standards.  All partners with a business relationship with Bharti Airtel shall comply with the highest-level of integrity and ethical practices.  The partners will provide all possible assistance to Bharti Airtel in order to investigate any possible instances of unethical behavior or business conduct violations by its employee. Partner will disclose forthwith any breach of these provisions that comes to their knowledge to allow for timely action in their prevention and detection.  Partners will adopt appropriate processes to prevent offering any illegal gratification in the form of bribes or kickbacks either in cash or in kind in the course of all dealings with us. Any instances of such violations will be viewed in a serious manner and Bharti Airtel31
  32. 32. reserves the right to take all appropriate actions or remedies as may be required under the circumstances.  All partners are required to confirm their compliance to ethical dealings on an annual basis by signing a certificate to this effect as per Bharti Airtels standard annual certificate.Any ethical or integrity issues observed or encountered while dealing with Bharti Airtel shall bebought to the notice of Bharti Airtels senior management or the Head of Internal Auditimmediately.Environment, health and safetySuppliers dealing with Bharti Airtel shall comply and adhere to all laws, regulations andguidelines on environment, health and safety. Suppliers will ensure that all new service offeringsas well as new product designs are incompliance with the relevant environmental regulation andguidelines, at the time of implementation at Bharti Airtel.Protection of Intellectual Property the Partner:  Shall comply with the guidelines for use of the trademarks and trade names notified by the Company (including but not limited to Bharti and Airtel) and shall not use the Company trademarks and trade names without the prior written consent of the Company.  Shall, under no circumstances, advertise or use Bharti Airtels name to market its own product or associate its company with Bharti Airtel. If a partner spots any counterfeit or infringing Company product/service, the partner shall immediately notify Bharti Airtel.Shall not reproduce, in whole or in substantial part, any copyrighted work in hard copies, prints,video or electronic copies in violation of the copyright laws including the Bharti Airtels PartnerManual. Bharti Airtels intellectual property also resides in trade secrets or know-haws. Tradesecrets are technical, commercial or other information unknown to the public, which can bringeconomic benefits to its owner. Documents that contain trade secrets and available to the Partnershall be safeguarded and not shared by the Partner with any third party without prior writtenconsent of Bharti Airtel.32
  33. 33. Domestic and international trade controlsSuppliers shall understand and follow applicable domestic and international trade control andcustoms laws and regulations, including, but not limited to those relating to licensing, shippingand import documentation and reporting and record retention requirementsConflict of InterestSuppliers will ensure they do not engage in any personal dealings with Bharti employees,especially those that they interact with on Bharti business matters.PARTNER POLICYAirtel would strive to conduct its business in a manner that reflects its vision and brand essence.As the sourcing base expands, Airtel will only do business with partners who are committed to along term relationship focusing on mutual growth and trust. All Partners are responsiblefor making sure that Airtels vision and brand essence is adhered to when subcontracting anyportion of their obligations. Partners are individually responsible for ensuring that theiremployees understand Airtels vision and brand essence.Regulatory ComplianceAll Partners of Airtel must operate within the bounds of all applicable laws. They must alsoadhere to the governing standards of the country and international countries in which theyconduct business. If at any time a Partner ceases to meet any statutory and/or other requirementof the country in which they are doing business, Airtel reserves the right to immediately cancelall its outstanding orders with that Partner as well as terminate its agreement with the Partner.Corporate CitizenshipAirtel believes in Corporate Citizenship. Airtel is committed to protecting the environmentwherever it does business. As a responsible corporate citizen we will favor those Partners whoshare our commitment to the community and the environment, as well as those who conform toall local requirements regarding environmental codes and guidelines.Corporate CitizenshipAll potential partners are required to undergo the registration process to be consideredfor business with Airtel. On successful completion, the partner would be added to AirtelsSupplier Base and a registration code would be provided. Only registered partners would beconsidered for new business opportunities. The registration code would be rendered inactive for33
  34. 34. partner‟s not meeting the requirements of the registration process. Once deactivated, partnerswould be required to go through the registration process again.Number of Partners and Business ShareAll partners working with Airtel would have a unique partner code and would be applicablefor all their business units globally. Airtel would have a maximum of 6 to 8 partners registeredfor any product or service. RFP would be released to registered partners only. Airtel at any pointof time would release a contract to a maximum of 3 partners for a product or service with abusiness share split of 60%,30% and 10%. Incase 2 partners are contracted; the business sharesplit would be 67% and33%. Business share would be primarily based on partner performancescore card. Airtel would provide higher business share for partners who help it to improve itstechnology, competitiveness and customer delight. In case where all criteria are similar thedecision would be based on the partners dependence on Airtel. Any deviation would beapproved at a level higher as per DOA. Single partner for a product or service would beapproved through a specific DOA.ReciprocityAirtels goal is to buy products and services which have the best prices, quality, delivery, andtechnology. Airtel encourages partners to use its products for their telecom requirements andwould prefer partners endorsing Bharti Airtel products where all criteria requirements are beingmet.Code of EthicsAirtel expects the highest standards of integrity and conduct from its partners. No gifts (otherthan advertising matter of modest values such as calendars and diaries), or favors Should beoffered to an employee of Airtel or to friends or family of employees. Partners are expected tofamiliarize themselves with the Airtel Code of Conduct which is available in the Partner Manualor on request, in order to avoid any ambiguity in this regard.ContractingSupply Chain is solely responsible for selecting partners, obtaining quotations andawarding purchase orders/contracts for products, equipment, software and/or services. Directdiscussions between the requesting organization and partner shall be coordinated by the SupplyChain Department. Airtel will issue a purchase order / contract for all products and/or services toall partners. Work should not begin until a formal purchase order/contract is received.34
  35. 35. Partner performing a service or supplying products without the proper authorization would do soat its own cost and risk.ConfidentialityAirtel will treat information received from Partners in a responsible fashion, and expects Partnersto treat information received from Airtel in the same manner. Partners should not discloseBhartiAirtel as a customer, documentation received from Bharti Airtel or release informationabout relationships with Bharti Airtel without written consent (should such disclosures be legallyrequired, Bharti Airtel will not unreasonably withhold that permission, which must be obtainedin advance and in writing).Partner SatisfactionAirtel would conduct an annual partner satisfaction survey and use it as an important tool tocontinuously improve and further develop its internal and external processes with partners. Inorder to obtain an unbiased feedback, the survey would be conducted by an independent externalagency.Partner AwardsAirtel recognizes consistent performance of its partners annually by presenting performanceawards. The awards would be primarily based on the partner performance score card. Awardswould be announced and presented during the partners meets. Consistent & good performerswould also be entitled to better share of business and other benefits, as would be announced fromtime to time by Bharti Airtel.Partner DisengagementAirtel reserves the right to cancel all orders and/or contracts with a partner in cases where thereis an unethical practice used, code of conduct violation, partner bankruptcy or insolvency,ownership transfer and/or any other reason deemed fit for disengagement. Airtel would follow astructured approach for disengagement to ensure the smooth transitioning whereseparation becomes inevitable.Partner GrievanceAirtels Partner grievance process ensures a Partners ability to access Airtels corporateassurance group and leadership to address concerns, grievances, or complaints relating to thecontracting award process for products or services, or in general‟s Partner who believes that acontract award decision was not determined appropriately must file a written grievance using the35
  36. 36. Partner Grievance form stating facts and concerns. The completed form must be sent via e-mailto central.scm@airtel.in A Partner who has a general concern, grievance & complaint must file awritten grievance using the Partner Grievance form stating facts and concerns. Complete formmust be sent to the supplier Ombudsperson at Airtel via e-mail Ombudsperson@airtel.in36
  37. 37. CHAPTER-3 THE COMPETITIVE AREA37
  38. 38. 3.1 COMPETITORS PROFILEVodafone Essar-Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16telecom circles in India . Despite the official name being Vodafone Essar, its products aresimply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coveragethroughout India and is especially strong in the major metros. Vodafone Essar provides2Gservices based on 900 MHz and 1800 MHz digital GSM technology, offering voice and dataservices in 16 of the countrys 23license areas.Growth of the company as Hutchison Essar-In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994was awarded a license to provide mobile telecommunications services in Mumbai (formerlyBombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singhof Max still holds 12% in company. By the time of Hutchison Telecoms Initial Public Offeringin 2004, Hutchison Whampoa had acquired interests in six mobile telecommunicationsoperators providing service in 13 of Indias23 license areas and following the completion of theacquisition of BPL that number increased to 16. In2006, it announced the acquisition of companythatheld license applications for the seven remaining license areas. In a country growing as fastas India, a strategic and well managed business plan is critical to success. Initially, the companygrew its business in the largest wireless markets in India – in Cities like Mumbai, Delhi andKolkata. In these densely populated urban areas it was able to establish a robust network, wellknown brand and large distribution network -all vital to long-term success in India. Then it alsotargeted business users and high-end post-paid customers which helped Hutchison Essar toconsistently generate a higher Average Revenue per User ("ARPU") than its competitors. By38
  39. 39. adopting this focused growth plan, it was able to establish leading positions in Indias largestmarkets providing the resources to expand its footprint nationwide.IDEA CELLULAR-Idea Cellular is a wireless telephony company operating in various states in India. It initiallystarted in 1995 as a join venture between the Tatas, Aditya Birla Group and AT&T by mergingTata Cellular and Birla AT&T Communications. Initially having a very limited footprint in theGSM arena, the acquisition of Escotel in 2004 gave Idea a truly pan-India presence coveringMaharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,Chhattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan and Delhi (inclusive ofNCR).The company has its retail outlets under the "Idea n U" banner. The company hasalso been the first to offer flexible tariff plans for prepaid customers. It also offers GPRS servicesin urban areas. Presently, operations exist in 11 Service Areas covering Delhi, Maharashtra, Goa,Gujarat, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttaranchal, Haryana, UP-West,Himachal Pradesh, UP-East, Rajasthan and Kerala. With a customer base of over 23 million,IDEA Cellular‟s footprint currently covers approximately 60% of Indias telecom populationA frontrunner in introducing revolutionary tariff plans; IDEA Cellular has the distinctionof offering the most customer friendly and competitive Pre Paid offerings, for the first time inIndia in an increasingly segmented market Customer Service and Innovation are the drivers ofthis Cellular Brand. A brand known for their many firsts, Idea is only operator to launch GPRSand EDGE in the country. Idea has received international recognition for its path-breakinginnovations when it won the GSM Association Award for "Best Billing and Customer CareSolution" for 2 Consecutive years. IDEA Cellular is part of the Aditya Birla Group, a US$ 24billion corporation with a market cap of US$ 31.5 billion and in the league of Fortune 500.Anchored by an extraordinary force of over 100,000 employees belonging to 25 different39
  40. 40. nationalities, over 50% of its revenues flow from its overseas operations. With ambitious futureplans, the company is poised for rapid growth across the whole country.The Brand Idea: It is almost impossible to disintegrate brand Idea from the corporate Idea. Brand values are thecompany values and vice versa.The Brand Vision: It goes without saying that the brand vision of idea mirrors theCompany’s visionThe brand mission statement is... To be the most customer-focused mobile service brand,continuously innovating to help liberate our customers from the shackles of time& spaceRELIANCE COMMUNICATIONS-Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom andFlag Telecom, is part of Reliance Communications Ventures (RCoVL). According to NationalStock Exchange data, Anil Ambani controls 66.75per cent of the company, which accountsfor more than 1.36 billion shares of the company. Reliance Infocomm is an Indiantelecommunications company. It is the flagship company of the Reliance-Anil DhirubhaiAmbaniGroup, comprising of power (Reliance Energy), financial services (Reliance Capital)and telecominitiatives of the Reliance ADA Group. Reliance Infocomm is currently managed byAnilDhirubhai Ambani. It uses CDMA 2000 1x technology.company profileOn November 15th 1999, Reliance infocomm begins its project planning. The founderof RELIANCE INFOCOMM, Dhirubhai Ambani dream was ³Make a phone call cheaper than40
  41. 41. a postcard and you will usher in a revolutionary transformation in the lives of millions ofIndians‟. In 2000, optic fiber laying process commences in Gujarat, Andhra Pradesh andMaharashtra. In 2001, first media convergence Node made ³Ready for Electronics´ at Jaipur. In2002, first Base Transceiver Station (BTS) made ³Ready for Electronics´. Then in same yearcompany obtains International Long Distance License from Govt. of India. After that theyestablish 1st point of Interconnect in New Delhi and on December 27, Honorable Prime Ministerof India Atal BihariVajpayee inaugurates RELIANCE INFOCOMM. Then year 2003 startswhich was the most successful year for Reliance Communicationsstrategic business units-The business of Reliance Communications is organized into three strategic customerfacing business units: Wireless, Global, and Broadband. In addition, one of the wholly ownedsubsidiaries of Reliance Communications is engaged in the marketing and distributionof wireless handsets. Their strategic business units are supported by our fully integrated, state-of-the-art network and operations platform and by the largest retail distribution andcustomer service facilities of any communications service provider in India.TATA TELESERVICES-COMPANY PROFILE-Tata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an IndianConglomerate. It runs the brand name Tata Indicomin India in various telecom circles of India.The company forms part of the Tata Groups presence in the Telecommunication Industry inIndia.TTSL was incorporated in 1995 and was the first company to offer CDMA Mobile servicesin India, specifically in the state of Andhra Pradesh. Tata is the direct competitor withother operators in India. The company provides unified telecommunication solutions including41
  42. 42. mobile, fixed wireless, fixed line and broadband. Other competitors like Vodafone, Airtel,Aircel, Idea MTNL and BSNL providing GSM based mobile telephony. The company was firstin India to provide free intra network calling within city limits. They launched a unique schemeproviding lifetime rental free connectivity on its mobile and fixed wireless for a one-time charge.The Tata Groups commitment to building a substantial presence in Indias telecom industry hasseen it play a leading role in the development of the countrys communications infrastructure.The telecom services of the Group are offered under the brand name Tata Indicom, and cover allsegments, from retail and enterprise to wholesale and international. The objective is to makeTataIndicom the preferred telecommunications choice of customers across the country. TheTataIndicom Enterprise Business Unit (TIEBU) is the central, specialized enterprise sales andmarketing unit for the Tata Groups telecom initiatives. The unit is the benchmark telecomplayer in the enterprise space and was formed with a view to providing customized, end-to-endvoice and data solutions to customers across India. It delivers cost-effective, integrated solutionsthat are designed to fulfill the most complex communication needs. Tata Indicom offers you arange of products and services like Wireless Internet, Wireless US Modem and Mobile Phonesso you are always connected. Landline Phones Net Telephony Internet & Broadband It haspartnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable,technologically advanced network. The company, which heralded convergence technologies inthe Indian telecom sector, is today the market leader in the fixed wireless telephony market witha total customer base of over 3.8 MillionBHARAT SANCHAR NIGAM LTD.COMPANY OVERVIEWBharat Sanchar Nigam Limited provides telecommunications services in India. Its servicesinclude wire line and cellular services, as well as other value added services, such as voice mail42
  43. 43. service, short message service (SMS), group messaging, national and international roaming, callforwarding, corporate virtual private network, call conferencing, friend and family talk, callwaiting, and call holding services. The company also provides3G; wireless in local loop(WLL)mobile telephone; Internet; Web-hosting; Web co-location; SMS and bulk SMS; andbroadband services. In addition, it offers managed network services; multi protocol labelswitching based virtual private network (VPN) services; integrated services digital network(ISDN) services; data communication services; intelligent network services consisting of toll freephone service, universal access number, voice VPN, televoting, and virtual calling cards; andvideo, audio, and Web conferencing services. Further, the company provides fleet managementsolution comprising track, an on-line tracking system to manage fleet, such as trucks, carcarriers, trailers, tankers, containers, or vehicles carrying hazardous and specialty explosivechemicals; net services for use in various applications, including electronic mail services,corporate communications, information retrieval, database services, remote job applications,credit card verifications, travel reservations, and Internet connectivity; telex/telegraphservices;PABX/EPABX services; and DSPT services, as well as offers VSAT, voice overInternet protocol, and IN services. Bharat Sanchar Nigam Limited was founded in2000 and is based in New Delhi, India.3.2 MARKETING STRATEGY BY AIRTELBharti decided to design different marketing strategies for different circles depending on thestrategies, employed by the competitors. While the company was focusing on its pricingstrategies, its competitors in various sectors were concentrated on new service offerings andvalue additions since the players almost immediately matched price reduction moves, companieshad begun focusing on developing value-added offerings and schemes to expand their marketand gain customer loyalty. Analysts remarked that the players were coming up with newschemes or value-additions almost every week to get the better of their competitors. Byconstantly keeping itself abreast with the moves of its competitors and launching variousproactive/reactive schemes, Bharti was able to retain its leadership position. Despite continualattacks from Vodafone, Reliance, , Idea Cellular and Bsnl, Bharti cellular services received goodhigh response in all circles during 2005 It was reported that in Mumbai,60-75% of customersseeking Airtel services were BPL Mobile and Hutch subscribers. In fact, it was becomingdifficult for the company to activate cellular connections in Mumbai swiftly on account of the43
  44. 44. high rush ± in some cases; it took almost three days to activate a connection. Bharti has spent aconsiderable amount on advertising its mobile phone service, Airtel. Besides print advertising,the company had put up large no of hoardings and kiosks in and around Delhi. The objectivebehind designing a promotion campaign for the Airtel services is to promote the brand awarenessand to build brand preferences. It is trying to set up a thematic campaign to build stronger brandequity for Airtel. Since the cellular phone category itself is too restricted, also the fact that aCellular phone is a high involvement product, price doesnt qualify as an effective differentiator.The image of the service provider counts agreat deal. Given the Cell phone category, it is thenetwork efficiency and the quality of service that becomes important. What now the buyer islooking at is to get the optimum price- performance package. This also serves as an effectivedifferentiator Brand awareness is spread through the campaigns and brand preference throughbrand stature. Airtels campaign in the capital began with a series of teaser hoardings across thecity, bearing just the companys name and without explaining what Airtel was. In the next phasethe campaign associated Airtel with Cellular only thereafter was the Bharti Cellular connectionbrought up. Vans with Airtel logos roamed the city, handing out brochures about the companyand its services to all consumers. About 50,000 direct callers were sent out. When the name waswell entrenched in the Delhi it essmind, the Airtel campaign began to focus on the utility of Cellphone. In the first four months alone Airteis advertisement spends exceeded Rs.4 crores. As oftoday the awareness level is60% unaided. This implies that if potential or knowledgeableconsumers are asked to name cellular phone service provider that is on the top of his/hermind60% of them would nameAirtel. As for aided it -is 100% (by giving clues and hintsetc.).Brand strength of a product or the health of a brand is measured by the percentage score ofthe brand on the above aided and the unaided tests. The figures show that Airtel is a healthy anda thriving brand. Every company has a goal, which might comprise a sales target and a gameplan with due regard to its competitor. Airtel s campaign strategy is designed keeping in mind itsmarketing strategy. The tone, tenor and the stance of the visual ads are designed to convey theimage of a market leader in terms of its market share. It tries to portray the image of being a"first mover every time" and that of a "market leader”. The status of the product in terms of itslife cycle has just reached the maturity stage in India. It is still on the rising part of theproduct life cycle curve in the maturity stage. The diagram on the left hand side shows thepercentage of the users classified into heavy, medium and low categories. The right hand side44
  45. 45. shows the revenue share earned from the three types of users.Airtel, keeping in mind theimportance of the customer retention, values its heavy users the most and constantly indulges inservice innovation. But, since heavy users comprise only 15-20% of the population the othersegment cannot be neglected. The population which has just realized the importance of cellularphones has to be roped in. It is for this reason that the service provider offers a plethora ofincentives and discounts. Concerts like the "Freedom concert" are being organized by Airtel inorder to promote sales. The media channel is chosen with economy in mind. The target segmentis not very concrete but, there is an attempt to focus on those who can afford. The printadvertisements and hoarding are placed in those strategic areas which most likely to catch theattention of those who need a cellular phone. The product promise (which might cost different 1higher) is an important variable in determining the target audience. Besides this, otherpromotional strategies that Airtel has adopted are. People who have booked Airtel services havebeen treated to exclusive premiers of block buster movies. Airtel has tied up with Lufthansa tooffer customer bonus miles on the German airlines frequent fliers programs. There have beeneducational campaigns, image campaigns, pre launch advertisements, launch advertisements,congratulatory advertisements, promotional advertise-ments, attacking advertisements andtactical advertisements.WHAT DOES AIRTEL OFFER?With Airtel, the subscriber wouldnt just get a personal phone that lets him/her be in touch,always, but also gets a host of benefits that let him/her manage his/her time like never before. AnAirtel subscriber is provided with a Subscriber Identity Module Card (SIM card) - that is the keyto operating his/her cellular phone. His card activates Airtel cellular services and contains acomplete micro-computer chip with memory to enable one to enjoy ones cellular phonethoroughly. Each SIM card contains a PIN code (Personal Identity Number) which may beentered by one. Just plug your SIM card into your cellular phone, enter the PIN code andit becomes your personal phone.PRODUCT LIFE CYCLE45
  46. 46. The pattern of cell phone subscriber growth observed elsewhere in the world reveals that thegrowth in the market is initially slow followed by a sharp acceleration, but so far that has nothappened in India. As far as the Product Life Cycle is concerned. Indians are at the beginningof the maturity stage.INTRODUCTION, GROWTH, MATURITY Marketing objectives  Create product awareness and trial  Maximize market share  Maximize profits whole defending market share3.3 PROMOTIONAL STRATEGYAirtel to ³Touch Tomorrow´ with a new brand vision The Bharti Mobile promoted AirTelcellular service will go in for repositioning of its brand image. The new brand ethos is portrayedin two distinct fashions - the tag line "Touch Tomorrow", which underscores the leading themefor the new brand vision, followed by "The Good Life", which underscores a more caring, morecustomer centric organization. Aimed at re- engineering its image as just simply acellular service provider to an all out information communications services provider, TouchTomorrow is meant to embrace the new generation of mobile communication services and thechanging scope of customer needs and aspirations that come along with it The newcommunication is about a new dimension in the cellular category that goes beyond the Internet,SMS, roaming, IVRS, etc but which engulfs the whole gamut of wireless digital broadbandservices that will constitute tomorrows cellular services. The new campaign is in two phases - thefirst of which will communicate overall brand philosophy and the second products and services.According to Mr.Jagdish Kini, Chief Operating Officer, Bharti Mobile Limited, Karnataka "Weare adopting a new brand- platform - Touch Tomorrow - not only to reflect our corporate ethosbut also business strategy”. The new identity will have the logo in Red, Black and White colorsalong with lower case typography to convey warmth.AirTel will incorporate the latest brandingin all of its communication and will soon be going in for an enhanced promotional drive toestablish the brands presence.3.4 TARGET MARKET SEGMENTAirtel has targeted the premium and upper middle class. The rationale behind it is that only thosesegments should be targeted who value time and have the paying capacity. It is also planning to46
  47. 47. target the business tourists during their stay in the capital about60% of the clientele are topexecutives of corporate houses. About 15% are foreign organizations and the restare professionals and small businessmen. During the introduction stage there was intensepressure to get consumers across to hook up with their brand, because getting them to switchbrand loyalty later would be hard So far Airtel marketers have been concentrating totally on thebusiness executive class but now that the basic viable volumes has beer) built up and prices havedeclined to a certain extent they are planning to venture further afield.POSITIONINGThe product is sought to be positioned as a business efficiency tool. a lifestyle revolution and astatus symbol The emphasis is to remove misconception that the cell phone is an expensivemeans of communication and drive home the point that the cell phone is actually a day-to-dayutilityPRODUCT POLICY AND PLANNINGThe product or services the hearts of the marketing mix. Without a product or a servicecustomers needs cannot be satisfied. The basic product promise by Airtel is mobility. Airtelsmain marketing strategy is to be a first mover all the time. It has recognized the significance ofmaking the first move-- because in the field of Communication & Information Technologychanges occur at a tremendous pace. Effective product segmentation has to be carried oncontinuously because basic services can beand will be copied and in time become expectedcomponent of the product. Airtel seeks to carry out this segmentation through provision of newinformation services and making new facilities available. The product policy and planningdepends on the stage of the product life cycle. At present the cellular phone market has reachedthe maturity stage. Since, the premium segment is nearing saturation the company targeting theupper middle and middle-middle class. In order to Do so Airtel is trying to optimize the priceperformance package by offering suitable "product bundling”. This involves the selection of thesuitable hardware (handset) and its software (its services.) with reasonable price in order todeliver maximum price performance to its customers. In addition, it offers free Airtime servicesand other concessions to make the prices and thus the product more attractive. It has also openeda 24 hours customer service. Only price doesnt serve as an effective differentiator, value added47
  48. 48. services become the effective differentiator. The "Value Added Services" provided from Airtelare:-Voice Mail serviceThis system is similar to the answering machine - if the user is not able to answer a call for somereason the caller can leave messages in the voice mail box which can be later retrieved by theuserShort Message ServiceThe short message service is like a two-way pager. It gives an option of sending and receivingtext messages directly from one mobile phone to another without the intervention of an operatorMobile Fax 1 Data ServiceThis service helps the subscriber to send and receive Faxes, access E-mail, download files fromother systems and remotely log on to another computer and surf the Internet.Cash CardThe cash card is a pre-paid and pre-activated card which allows the buyers to buy air time inadvance. All it requires is the payment of an initial amount. This is a useful service for peoplewho travel to Delhi often and those who want to control the expenses on their calls.Caller IDDisplays calling persons number.Outgoing call restrictionTo prevent or limit outgoing calls, for example, in peak hours. Also possible to exclude one orseveral countries or any geographical region, to permit only local calls, or to limit the outgoingcalls to a listed number. Call forwardIncoming calls can be forwarded to another fixed or mobile phone. Besides these some otherservices provided by Airtel are - Call conferencing, Call Broadcast ET cetera.It is in theoperators -Interest that they not only get many subscribers but also get them to use the mobilefacility frequently. In the early stages getting increases to subscribe may be easier than gettingthem to talk since they will find it costlier to use the mobile phone as compared to a conventionalphone [if is believed that initially cell phones would be used buy]48
  49. 49. Roaming FacilityRoaming facility is available while the subscriber is travelling. The billing is done in the homenetwork (Delhi). Roaming facility is available manually* as well as semi-automatically. Once asubscriber is in any other city or country, where a GSM network is available, simply insert theSIM card of the local operator into your handset and start talking49
  50. 50. CHAPTER- 4: ANALYSIS50
  51. 51. 4.1 DATA ANALYSISGSM MOBILE MARKET SHARE IN INDIA-TELECOM COMPANY SHARE {%} BHARTI AIRTEL 30%From the above data its can be say that Airtel is the leading brand in telecom industry of India,having30% market share and 121.7million customers. And second leading brand is Vodafonewith 23.87% market share. Airtel is most admired brand by consumersIndia GSM subscribers continue to decline in July 2011 newsOperator Total Sub Figures Market ShareBharti Airtel 170,696,526 28.15 %Vodafone Essar 143,011,007 23.58 %IDEA 96,111,475 15.85 %BSNL 90,234,162 14.88 %Aircel 58,589,349 9.66 %Uninor 27,388,666 4.52 %Videocon 7,034,876 1.16 %MTNL 5,265,149 0.87 %Loop Mobile 3,162,932 0.52 %S-Tel 3,501,247 0.58 %Etisalat 1,424,554 0.23 %All India 606,419,943 100.00 %51
  52. 52. MY PROJECT SITESProject - less than 5 tr sites railway sites- 1. Bada 2.hazira 3.gole ka mandir 4.morar 5.lashkarGwalior -SALES PROMOTION BY AIRTEL IN GWALIOR ZONEAirtel is leading and most admired brand in Gwalior. Airtel is contributing34.5% market in thiszone and rest 65.5% market is acquired by all other companies such as Vodafone, idea, bsnletc.This shows that Airtel is doing best in telecommunication industry. Bharti Airtel Ltd. havingits own separate entity named as BHARTI AIRTEL LTD. for GWALIOR region. Earlier Airtelwas providing mobile SIM cards at very low price or totally free, but the consequences occurredthat the consumer age on network could not be for a long period because the consumers did notpaid for that SIM card and whatever they got as talk value and other useful schemes, they wereused it and threw the SIM cards. Than the Airtel decided to make a change in this procedure ofactivations. Now Airtel providing a mobile connection at a specific price so if customers buy itthan he will be with network for a long period because he has paid a amount for it.4.2 FINDING52
  53. 53. 1.Airtel holds number one position in India with 30.86% market share.2. Same as in Gwalior zone Airtel is on 1st position with34.5% market share.3.In Gwalior zone Airtel having20 distributers and around 2800 retailers.4. Airtel launches every month a new FRC scheme.5. Earlier Airtel provided SIM cards at very low price or free. But this method was not soeffective because consumers started making it use and throw kind of stuff. By this way companywas being unable to make such stable and long last consumers.6. Now airtel launches some FRC schemes. So the customer has to pay a amount for a new simactivation. By this way now consumer age is started being long.7. Vodafone is the biggest competitor of Airtel in telecom industry.8. The distributer gives different scheme to different shopkeepers.9. Mostly retailers are satisfied with Airtel service10. Some retailers reported that they do not get time to time airtel products.11. Some retailers are not satisfied with margin policy of Airtel.12. Earlier the FRC plan61 launched that time some light retailers were facing problem toconvince the customers. Because competitors were providing same plan at low cost.13. Some Outlets owners are very angry with the company‟s performance because they did wellin Airtel mo. Connection but they were not appreciated by the company14. Some retailers are facing problem in ID verification policy of Airtel. Because the companymake so strict this procedure.15. Many customers are diverted to other network due to strictness in id verification.16. Some retailers reported that the company does not provide enough return ontheir performance.17. Modern trade is very effective concept. In this concept the Airtel is contributing95% market.And rest 5% covered by all other competitors4.3 SUGGESTION  First of all company will provide all its dealers and retailers to all sort of promotion equipment such as glow sign board, banner, pumplates etc. in time so that they increase their sales which is benefited both retailer as well as company.53
  54. 54.  Few outlets are unaware about scheme so proper communication is necessary between distributor and retailers. Number of hoarding should be increased.  Company should be lenient in ID verification procedure.  To increase the consumer as on network, company should make change in its FRC plan for example the talk value should be divided in two parts.50% of talk value should provide at the time of activation and rest T.T. provide after gap of some days.  Company should make understand its retailers about the benefits of consumer as on network.  Company should give extra return and other bonus, gifts to its retailers so they put their full efforts to increase the Airtel sales.  Company should motivate its sales staff so they will pay more concentration in sales and activation of new connections.  Company should make some necessary change in its FRC plan. For example company should divide the talk time in to two time {50% at the time of activation+50% after4.4 LIMITATION OF STUDY  Many retailers do not cooperate and searching of retailer outlet name was much more difficult as many of them have not put their Shop name in Board.  Dealers and Retailer do not like to give information of their selling.  The projection is purely based on verbal meeting and may be influenced by unprecedented factors  Lack of interest in retailers to provide full information of their performance.  Problem occurred in collection of competition details from the retailers.54
  55. 55. 4.5 CONCLUSIONEverything in this world is made to utilize properly but it should be reach at the proper personor to the proper utilized areas. Otherwise the value added to those things became in vein. Thuspromotion role plays a very important role in achieving the objectives of a company. Undoubtly,value utility is created by the manufacture of product or service but time and place utilities arecreated by marketing role. The various finding and befitting recommendation have been made toincrease the market share of each product (postpaid, prepaid) of Airtel thereby increasing themarket share of Airtel as a whole. Various facts and data have been enclosed for better perusaland various graphs have been provided for better comprehension. Sales Promotion techniquesyield results that many other marketing communication elements cannot achieve.Sales promotion that is used in with the overall long-turn communication strategy of the brand issaid to use strategically. A promotion should not be used for the sole purpose of altering sales inthe short run .Sales promotion is used as a very strategic tool to introduce a new product.Although advertising plays a large role towards creating awareness and attitude information,sales promotion used to make new product launch easier and more effective.55
  56. 56. 4.6 BIBLIOGRAPHYWEB SITES-http://trak.in/tags/business/2007/06/19/indian-telecommunication-story-From-10-million-to-150-million-mobile-subscribers-in-5-years/ http://www.google.co.in/#hl=en&source=hp&q=telecom+industry+in+india+in+2006+t o+2008&aq=o&aqi=&aql=&oq=&gs_rfai=&fp=ab22efe5d2 b8757 http://airtel.in/wps/wcm/connect/about+ bharti+airtel/Bharti+Airtel/About+Bharti+Airtel/?WCM_Page.ResetAll=TRUE&CACHE=NONE&CONTENTCACHE=NONE&CONNECTORCACHE=NONE&SRV=Page http://airtel.in/wps/wcm/connect/about+ bharti+airtel/Bharti+Airtel/About+Bharti+Airt el/Our +Brand+Airtel/ http://www.economywatch.com/world-industries/telecommunications/telecom-industry- in-india.htmlBOOKS- C.R Kothari, ³ Research Methodology´ , Vishwa Publication , New Delhi , II Edition William G. Zikmund , ³Business Research Methods ,2003 EditionMAGAZINES- Business today India today Forbes India56

×