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Shailesh 2740000 final project


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This is the project on marketing strategy of Bharti Airtel.

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Shailesh 2740000 final project

  2. 2. Introduction of the Company Bharti airtel LtdBharti Airtel Limited was incorporated on July 7, 1995 for promoting investments intelecommunications services. Its subsidiaries operate telecom services across India.Bharti Airtel is Indias leading private sector provider of telecommunications servicesbased on a strong customer base consisting of 50 million total customers, whichconstitute, 45.8 million mobile and 5.4 million fixed line customers, as of March 31,2010Airtel comes to us from Bharti Airtel Limited - a part of the biggest privateintegrated telecom conglomerate, Bharti Enterprises. Bharti provides a range oftelecom services, which include Cellular, Basic, Internet and recently introducedNational Long Distance. Bharti also manufactures and exports telephone terminalsand cordless phones. Apart from being the largest manufacturer of telephoneinstruments in India, it is also the first company to export its products to the USA.Bharti has also put its footsteps into Insurance and Retail segment in collaborationwith Multi- National giants. Bharti is the leading cellular service provider, with afootprint in 23 states covering all four metros and more than 50 million satisfiedcustomers.The technology that gives a person the power to communicate anytime anywhere hasspawned an entire industry in mobile telecommunication. Mobile telephones havebecome an integral part of the growth, success and efficiency of any business/economy.The government of India recognizes that the provision of the world-classtelecommunications infrastructure and information is the key to rapid economic andsocial development of the country. It is critical not only for the development of theInformation technology industry, but also has widespread ramification on the entireeconomy of the country. It is also anticipated that going forward, a major part of theGDP of the country would be contributed by this sector.Accordingly, it is of vital importance to the country that there be a comprehensiveand forward looking telecommunications policy which creates an enablingframework for development of this industry. 2
  3. 3. In India, the telecommunications market has undergone a major transformation in thepast couple of decades. From being a complete monopoly of the public sector, to thebreaking down of these monopolies, the telecom industry has witnessed significantpolicy reforms. These reforms also led to the entry of private players in all kinds oftelecommunications services, such as cellular and wireless in local loop services, inaddition to the basic telephony services.Airtel is the fastest growing company in the telecom sector in India. The companyunderstands to deliver their services with full customer satisfaction. We go throughboth generic and specific, professional that help us remain well informed andknowledgeable about the company’s product in the market.Airtel has collaboration with Research In Motion (RIM) which is a Canadiancompany. Blackberry is the product of RIM. It’s an instant email service. At Airtel asMarket Researcher I have to find out the market awareness for Blackberry in Punecorporate houses, and for that purpose I have to meet to the company’s high profileexecutives. Sing Tel owns 30% of Bharti Airtel.And Vodafone is also a 4% share holderof Airtel. 3
  4. 4. OBJECTIVES OF THE STUDYThe primary objective of the study is to understand the growth pattern of mobilesegment, giving main consideration to mobile segment of bharti airtel limited andanalyzing the franchise on the give parameter. Some other objectives of the study areas follows:- • To attract the customers towards the product of the organization using various promotional tools. • Research and analysis of the current customer base. • To analyze the customer satisfaction and problem regarding billing, network, problems at franchise. • Analyzing the competition in the market comparative analysis of different plans of other operator with existing plans of Airtel. • To know the market share of Airtel in the telecomm market. • To know the monthly expenses of customers on their Airtel connection. • To compare companys postpaid services with its prepaid. • To study the viewpoints of the customers regarding the services provided by the Airtel. • To know how much customers are attaching to company yearly. • To study the responses of customers towards the company. 4
  5. 5. LIMITATIONNo project is without limitations and it becomes essential to figure out the variousconstraints that we underwent during the study. • The following point in this direction would add to our total deliberations. • During the study on many occasions the respondent groups gave us a cold shoulder. • The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied. • Lack of time is the basic limitation in the project. • Some retailer/whole sellers refuse to cooperate with the queries. • Some retailer/whole sellers gave a biased or incomplete information regarding the study. • Money played a vital factor in the whole project duration.. Lack of proper information and experience due to short period of time. • Some retailers did not answer all the questions or did not have time to answer. • At times customers are not ready to listen to the information given to them because they are too angry with the whole processing system. So didnt respond. • Distribution strategies of Airtel are not up to the mark. 5
  6. 6. RESEARCH METHODOLOGYA research design is simply a plan or framework for a study that is used in collectingand analyzing the data. This framework is to ensure that relevant information iscollected and that too depending upon the objectives of the study.The research designcan be classified into three categories – Exploratory, descriptive, and casual:Exploratory ResearchIt seeks to discover new relationships, emphasis on discovery of ideas. This researchis used when very little is known about the problem being examined. Exploratoryresearch studies are also termed as formulative research studies as its main purpose isto formulate a problem. Exploratory research is used here is flexible and the areaswhere this type of research used are to know the: • Brand preference • Attitude of the customers • Market potential • Buyers behaviorConsumers awareness.The purpose of this type of research is to gain insight into problem. The researchdesign used for the project at hand is of exploratory in nature. Exploratory research isalways based on small non-representative samples and data obtained are subjected toqualitative analysis.Exploratory research helps to gather information about practical problems in carryingout the research and to provide insight into, and an understanding of, the problemconfronting the researcher.Descriptive Research 6
  7. 7. It attempts to determine the frequency with something occurs or the relationshipbetween two phenomenons. It is a type of conclusive research that has its majorobjective of describing something like market characteristics or functions.Descriptive research gives a clear statement of the problem, specifies hypothesis, anddetailed information needs. It is conducted for the for the reasons like to describecharacteristics of relevant group are associated and to make specific predictions, toestimate the percentage of units in a specified population exhibiting a certainbehavior, to determine the perceptions of product characteristics, to determine thedegree to which marketing variables. A descriptive design requires a clearspecification of who, what, when, where, why, and way of research.Descriptive research used the following methods:- • Observation • Questionnaires • Interviews • Examination of records • Some of the examples are • Market studies • Market share studies • Sales analysis studies • Image studies.Causal ResearchThese designs often adopted in order to discover and determine the cause and effectrelationship. It is also experimental research as its major objective is to obtainevidence regarding cause and effect relationship. It requires a planned and structureddesign. The main method of experiment research is experimentation and hypothesesare specific. Experimental research is useful in cases where variables are manipulatedin a relatively controlled environment.Source of collecting dataAchieving accuracy in any research requires in depth study regarding the subject. Asthe primary object is to study the market segmentation and strategies secondary 7
  8. 8. objective of the project is to compare Airtel with the existing competitors in themarket and impact of Airtel on Bharti, the research methodology adopted is basicallybased on primary data via which the most recent and accurate piece of first handinformation could be collected.Primary DataPrimary data was collected using the following techniques.Questionnaire Method, Direct Interview Method and Observation Method.The main tool used was, the questionnaire method. Further direct interview method,where a face to face formal interview was taken. Lastly observation method hadbeen continuously observes the surrounding environment he works in.Procedure: • Target geographic area was Meerut, Dauralla, Parikshit garh, sakoti & Matoor. • To these geographical area questionnaire was filled by 200 people, the questionnaire was a combination of both open ended and closed ended questions. • The date during which questionnaires were filled was between six week. • Some dealers were also interviewed to know their prospective. Interviews with the honors of retailer of airtel were also conducted. • Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given.Secondary dataSecondary data has been used to support primary data wherever needed.It is used to obtain information on, Airtel and its competitor history, current issues,policies, procedures etc, wherever required.Sources of Secondary Data • Internet • Magazines • Newspapers, etc. 8
  9. 9. Research Process Defining the record and research objective.Developing the research plan for collecting information implementing the research plan. Collecting and analyzing data. Interpreting and representing the findings. 9
  10. 10. TYPE OF RESEARCHThis is descriptive research as this research includes surveys and fact finding inquiresof different kinds. So descriptive research help in knowing about particular item orgroup of items in other words it describes the state as it exist at present. DATA COLLECTIONThe data collected in this research is first hand so it is primary data. It is collecteddirectly from the respondent through questionnaire and through visualization. DATA COLLECTON METHODThe data was collected through research questionnaire method and throughvisualization for franchise analysis. A questionnaire was framed then data collectedby making it fill by different respondent. DATA COLLECTION INSTRUMENTIt is closed ended and open ended both types of questionnaire. If questionnaire isclosed ended then questions are in the form of Yes or No and if questionnaire isopen ended then questions are in the form of any numerical form. SAMPLE TECHNIQUESSampling techniques used in judgment sampling. As the selection of sample wasdone according to the researchers own discretion and all effort were made to keepthe research objective. DATA ANALYSIS TECHNIQUESAnalysis of data is done through quantitative method that is numerical figuresexpressed in pe DATA ANALYSIS INSTRUMENTInstrument used for data analysis is tabulation of data, bar chart. 10
  12. 12. AIRTEL BACKGROUNDBharti Airtel Ltd is a provider of telecommunication services with presence in all the22 licensed jurisdictions in India and in Sri Lanka. The company is the largest GSMmobile service provide in India. The company offers an integrated suite of telecomsolutions to enterprise customers, in addition to providing long distance connectivityboth nationally and internationally. The company has fourteen subsidiary companies.The company provides all the services under the Airtel brand. The company operatesin four strategic business units, namely Mobile, Telemedia, Enterprise and DigitalTV. The mobile business offers services in India, Sri Lanka and Bangladesh. TheTelemedia business provides broadband, IPTV and telephone services in 95 Indiancities. The Digital TV business provides Direct-to-Home TV services across India.The Enterprise business provides end-to-end telecom solutions to corporatecustomers and national and international long distance services to telcos. Thecompany also provides Passive Infrastructure Services segment, through BhartiInfratel Ltd, which deploys, owns and manages passive infrastructure in 11 circles ofIndia. The company was ranked among the six best performing technologycompanies in the world by BusinessWeek. Bharti Airtel Ltd was incorporated in theyear 1995 with the name Bharti Tele-Ventures Ltd. The company was promoted byBharti Telecom Ltd, a company incorporated under the laws of India. The name ofthe company was changed from Bharti Tele-Ventures to Bharti Airtel Ltd with effectfrom April 24, 2006 in order to reflect their brand essence, objective and the nature oftheir business activities. During the year 1995-96, the company launched mobileservices under the brand name Airtel for the first time in Delhi and HimachalPradesh. During the year 1997-98, the company became the first private telecomoperator to obtain a license to provide basic telephone services in the state of MadhyaPradesh. They incorporated Bharti BT VSAT Ltd and Bharti BT Internet Ltd during 12
  13. 13. the year. During the year 1999-2000, the company acquired JT Mobiles for providingcellular services operator in Punjab, Karnataka and Andhra Pradesh. Also, theyacquired Skycell, Chennai and thus, they expanded their South Indian footprint.During the year 2001-02, they launched IndiaOne, Indias first private sector nationaland international long distance service. They acquired licenses for eight new circlesacross India. In July 2001, the Company acquired 100% equity interest in BhartiMobitel Ltd (erstwhile Spice Cell Ltd), which provided mobile services in theKolkata circle. During the year 2002-03, the company launched cellular mobileservices in the circle of Mumbai, Maharashtra, Tamil Nadu, Kerala, Madhya Pradesh,Uttar Pradesh (West), Haryana and Gujarat, fixed line services in the circles of TamilNadu and Karnataka and International Long Distance Services. They alsocommenced commercial operations for their submarine cable.landing station. During the year 2003-04, the company obtained the new licenses forproviding the Unified Access Services, which include telecom circles of West Bengal(including Andaman & Nicobar and Sikkim), Bihar (including Jharkhand), Orissa,Jammu & Kashmir and UP (East). They also acquired interest in the telecom circlesof Rajasthan and North Eastern States, through the acquisition of 67.5% equity stakein Bharti Hexacom Ltd. During the year 2004-05, Bharti Cellular Ltd and BhartiInfotel Ltd, subsidiaries of the company, merged with the company with effect fromApril 1, 2004. Prior to merger of Bharti Cellular Ltd with the company, BhartiMobile Ltd operated in circles of Karnataka, Andhra Pradesh and Punjab mergedwith Bharti Cellular Ltd. The company acquired an additional stake of 1% fromFouad M T Al Ghanim Trading & Cont Co Kuwait one of the shareholder of BhartiHexacom Ltd. During the year, the company and Videsh Sanchar Nigam Ltd enteredinto an agreement to share the companys national long distance network for a periodof 15 years for a consideration of Rs. 5,000 million. They entered into a regionalmobile services agreement with six other leading mobile operators, namely GlobeTelecom, Philippines; Maxis, Malaysia; Optus, Australia; SingTel, Singapore;Taiwan Cellular Corporations, Taiwan and Talkomsel, Indonesia and formed aregional alliance, namely Bridge Alliance. In April 2005, the company through theirerstwhile 100% subsidiary Bharti Infotel Ltd, which was merged with the companyacquired 100% equity stake in Bharti Broadband Ltd (formerly known as Comsat 13
  14. 14. Max Ltd) by acquiring their holding company Satcom Broadband Equipment Ltd(formerly known as CMax Infocom Ltd). Satcom Broadband Equipment Ltd and Bharti Broadband Ltd were amalgamatedwith the company with effect from October 1, 2005. During the year 2005-06, thecompany signed a managed capacity expansion contract with Ericsson for providingmanaged services and expands their GSM /GPRS network into rural India in 15circles. Also, they entered into an agreement with Nokia to expand their managedGSM/ GPRS/ EDGE networks in eight circles. The company and IBM launchedManaged Services under their joint go-to-market program. During the year,Vodafone acquired 10% economic interest in the company by way of subscription ofconvertible debentures in Bharti Enterprises Ltd. Also, the company entered intostrategic partnership outsourcing agreements for their customer care call centeroperations with four international BPOs - Hinduja TMT (HTMT), IBM Daksh,Mphasis and TeleTech Services. During the year 2006-07, the company incorporatedseven wholly owned subsidiaries namely Bharti Airtel (USA) Ltd, Bharti Airtel (UK)Ltd, Bharti Airtel (Hong Kong) Ltd and Bharti Airtel (Canada) Ltd, Bharti InfratelLtd, Bharti Telemedia Ltd and Bharti Airtel Lanka (Pvt) Ltd. They received letter ofoffer from Telecommunications Regulatory Commission of Sri Lanka for providing2G and 3G mobile services in Sri Lanka. During the year, the company entered intoagreement with Microsoft to offer software and services for the Small and MediumBusiness (SMB) market in India and to offer Microsofts latest Windows Mobile 5.0technology to its customer. They entered into agreement with Google to offer searchservices on Airtel Mobile. Also, they entered agreement with Adani Group to connectMundra Port and Special Economic Zone and with IBM to deliver Indias firstService Delivery Platform. In July 2006, the company launched Airtel Mega FixedWireless Phone (FWP) services. In September 14, 2006, they acquired 43,750thousand shares of Bharti Hexacom Ltd for an aggregate consideration of Rs.875,000 thousand thereby increasing their stake from 68.5% to 68.89%. In December2006 the company announced their foray into USA with the launch of AirtelCallHome service for Non-Resident Indians. In March 2007, they introduced 14
  15. 15. BlackBerry 8800TM business phone. In April 3, 2007, Bharti Airtel (Singapore) PvtLtd, Singapore, was incorporated for providing Voice.Interconnection, Prepaid International Calling Services, International Private LeasedCircuits and VSAT Trading. During the year 2007-08, Bharti Airtel Services Ltd(erstwhile Bharti Comtel Ltd), the wholly owned subsidiary of the company, soldtheir entire shareholding in Bharti Telemedia Ltd to the company and BhartiEnterprise Ltd in the ratio of 40% and 60%, respectively. The company acquired 2%stake in a subsidiary of IFFCO Ltd called IFFCO Kissan Sanchar Ltd at aconsideration of Rs. 50,125 thousand. Also, they invested USD 1,200 thousandtowards 1,200 thousand shares, of Bridge Mobile Pte Ltd, Singapore (BridgeMobile). During the year, the company entered into a joint venture agreement withVodafone Essar Ltd and Idea Cellular Ltd and formed an independent towercompany namely, Indus Towers Ltd for providing passive infrastructure services in16 circles of India. In September 7, 2007, the company acquired 49% of the equity inBharti Aquanet Ltd, India, at a consideration of Rs. 159,549 thousand making BhartiAquanet Ltd a 100% subsidiary of the company. In September 28, 2007, theyacquired 100% of the equity in Network i2i Ltd, Mauritius, at a consideration of USD133,400 thousand. In October 1, 2007, the company incorporated a new companynamely, Bharti Airtel Holding (Singapore) Pte Ltd in Singapore as an investmentholding company of the company. In January 2008, the company transferred thepassive telecom infrastructure business of the company to Bharti Infratel Ltd. Duringthe year 2008-09, the company made their foray into media and television byredefining home entertainment with Airtel digital TV. They launched their virtualcalling card service Airtel CallHome in UK, Singapore and Canada. The service istargeted at the huge Indian Diaspora, Non-Resident Indians (NRIs) and Indianstudents in these markets. The company launched their mobile services in Sri Lankaunder the Airtel brand. They expanded their footprint by launching their MobileServices in Lakshadweep. They also launched VeriSign Identity Protection (VIP)Services for their enterprise customers in India in partnership with VeriSign.In February 19, 2009, the company increased their stake in Bharti Hexacom Ltd by1.11% through acquisition of 2,780,306 equity shares for an aggregate considerationof Rs. 166,818 thousand. In March 4, 2009, the company subscribed 1,470,000 equity 15
  16. 16. shares (49% stake) in Bharti Teleports Ltd for an aggregate consideration of Rs.14,700 thousand.In October 2009, the company launched live mobile comic service on their mobileentertainment portal, Airtel Live. In October 23, 2009, they acquired an additional55% equity stake in their subsidiary, Bharti Telemedia Ltd for a consideration of Rs.7.38 crore. Consequently, the total equity interest of the company in BhartiTelemediaLtd increased to 95%. In January 12, 2010, the company agreed to acquire70% stake in Warid Telecom, Bangladesh, a wholly owned subsidiary of the DhabiGroup. Warid Telecom is offering mobile services across all the 64 districts ofBangladesh. As of January 2010, the company had an aggregate of over 131 millioncustomers in South Asia, including 121.7 million mobile customers in India. InMarch 11, 2010, the company made their debut into Media & Entertainment with thelaunch of the Airtel Digital Media Business.With this, the company is able to offer Content Delivery Solutions for media andentertainment sector. In June 2010, the company acquired Zain Groups mobileoperations in 15 countries across Africa for an enterprise valuation of USD 10.7billion. With this, the company has become the first Indian brand to go truly globalwith a footprint that covers over 1.8 billion people. Also, the company has become amajor Indian MNC with operations in 18 countries across Asia and Africa with acustomer base of over 180 million.Board of DirectorsThe Board of Directors of the Company has an optimum mix of Executive and Non-Executive Directors, which consists of three Executive and fifteen Non-ExecutiveDirectors.The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is anExecutive Director and the number of Independent Directors on the Board is 50% ofthe total Board strength.The independence of a Director is determined on the basis that such director does nothave any material pecuniary relationship with the Company, its promoters or itsmanagement, which may affect the independence of the judgment of a Director.The 16
  17. 17. Board members possess requisite skills, experience and expertise required to takedecisions, which are in the best interest of the Company. Bharti Airtel Board Of DirectorsDirector Name DesignationSunil Bharti Mittal Chairman & Managing DirectorManoj Kohli Joint Managing Director & CEOHui Weng Cheong Non Executive DirectorTan Yong Choo Non Executive DirectorCraig Edward Ehrlich Non Executive DirectorRakesh Bharti Mittal Non Executive DirectorRajan Bharti Mittal Non Executive DirectorAkhil Gupta Non Executive DirectorChua Sock Koong Non Executive DirectorN Kumar Non Executive DirectorPulak Chandan Prasad Non Executive DirectorAjay Lal Non Executive DirectorH E Salim Ahmed Salim Non-Executive Independent DirectorLord Evan Mervyn Davies Non-Executive Independent DirectorTsun yan Hsieh Non-Executive Independent DirectorNikesh Arora Non-Executive Independent DirectorMukesh Bhavnani Company Secretary 17
  18. 18. Bharti Airtel promotersNEW DELHI: Bharti promoters have acquired an additional 0.5% stake in thetelecom arm, Bharti Airtel. Given the prevailing market price of the firm, this dealwould be valued at around Rs 800-830 crore ($195 mn). Meanwhile, the promotershave also completed the purchase of 5.6% stake held by Vodafone.Share holdingShare holding pattern as on : 30/09/2011 30/06/2011 31/03/2011Face value 5.00 5.00 5.00 No. Of % No. Of % No. Of % Shares Holding Shares Holding Shares HoldingPromoters holdingIndian Promoters 1729264367 45.54 1727739056 45.50 1727739056 45.50Foreign Promoters 865673286 22.80 865673286 22.80 865673286 22.80Sub total 2594937653 68.33 2593412342 68.29 2593412342 68.29Non promoters holdingInstitutional investorsBanks Fin. Inst. and 172574573 4.54 180932368 4.76 195040038 5.14InsuranceFIIs 650843705 17.14 667809880 17.59 654182473 17.23Sub total 980957182 25.83 989701874 26.06 984793928 25.93Other investorsPrivate Corporate 155932681 4.11 141677595 3.73 140757887 3.71BodiesNRIs/OCBs/Foreign 8512071 0.22 8831454 0.23 9750216 0.26OthersOthers 4389222 0.12 4366186 0.11 4484154 0.12Sub total 168833919 4.45 154875180 4.08 154992202 4.08General public 52801287 1.39 59540645 1.57 64331569 1.69Grand total 3797530041 100.00 3797530041 100.00 3797530041 100.00 18
  19. 19. SHARE HOLDING PATTERN/OWNERSHIPThe British firm, which held 10% strategic stake in Bharti Airtel, had announced thatit would sell back 5.6% in Bharti Airtel for $1.6 bn in two tranches before November,2008. Vodafone had made this announcement after it entered India by acquiringHutchisons holding in Hutch Essar in 2007.The entire 5.6% stake that was sold back was held by a Mittal family-held entity —Indian Continent Investment. Earlier this week, this firm also acquired 0.53%additional stake in Bharti Airtel through an off-market deal. Post transaction, this firm holds 6.14% in Bharti Airtel. Though the companyspokesperson declined to name the seller for the 0.5% stake, sources said that it wasbe one of the large foreign institutional investors(FIIs).The FIIs held 23.63% in Bharti Airtel as of June 30. It is not known exactly at whatprice or on which date the deal was struck. However, given the scrip price movementover the last two weeks, the deal would be Rs 800-crore plus. As a result, thepromoters holding (the Mittal family and Singtel) in the countrys largest telecomoperator has gone up to 67.03%. As of June 30, promoters held 66.5% in thecompany. Among the top non-promoter shareholders in Bharti Airtel are insurancefirm LIC and other institutional investors such as Eurpacific Growth Fund, MerrillLynch and Morgan Stanley, all of whom held more than 1% stake as of June 2008. 1st Quarter: 45.38% of the total shares were held by the “promoter and promoter group”. 54.62% of the shares were held by the public institutions. 2nd Quarter: 60.97% of the total shares were held by the “promoter and promoter group”. 39.03% of the shares were held by the public institutions. The shareholders belonging to the “public” category and holding more than 4% of shares were: 19
  20. 20. Vodafone International Holding BV Citigroup Global Markets Mauritius Private Limited Morgan Stanley And Co International Limited Life Insurance Corporation of India under Various Schemes The Growth Fund of America Inc 3rd Quarter: 60.96% of the total shares were held by the “promoter and promoter group”. 39.04% of the shares were held by the public institutions. 4th Quarter: A major portion of the shares are held by the “promoter and promoter group”. They held 60.95% of the shares, the two promoters being Bharti Telecom Limited and Pastel Limited. The remaining 30.05% shares were held by non-institutions.Partners of airtelThe company has a strategic alliance with SingTel. And vodafone is also a 4% shareholder of Bharti airtel The investment made by SingTel is one of the largestinvestments made in the world outside Singapore, in the company. The company’smobile network equipment partners include Ericsson and Nokia. In the case of thebroadband and telephone services and enterprise services (carriers), equipmentsuppliers include Siemens, Nortel, Corning, among others. The Company also has aninformation technology alliance with IBM for its group-wide information technologyrequirements and with Nortel for call center technology requirements. The call centeroperations for the mobile services have been outsourced to IBM Daksh, HindujaTMT, Teletech & Mphasis. 20
  21. 21. AIRTEL PRODUCT & SERVICES • Airtel Toll Free • Airtel Broadband • Airtel Landline • Airtel 3G • Airtel Mobile • Airtel Leased Line • Airtel Blackberry • Airtel IPhone • Airtel Money • Airtel DTH Feature of ProductsAn internet leased line is a premium internet connectivity product, delivered overfiber or wi-fi, which is dedicated fully duplex and provides uncontended,symmetrical speed Internet. With Internet becoming critical in todays businessenvironment, the need for quality Internet connectivity is on the rise. With pricedifference between Broadband & Internet leased line was almost 4 times till an yearago Internet Leased Line was used by only corporates. & large organisations With 21
  22. 22. the higher bandwidth availability with service providers in India & the rise in demandfor Internet Leased Line among consumers saw drastic price cuts over the yearbridging the gap between Internet Leased Line & Broadband making every businessconsidering Internet Leased Line for their Internet connectivity.Leading the pack of Service providers providing Internet Leased Line is AIRTELwith over 50% market share due to its quick response, reachability & competitivepricing.• * Unparalleled Service Level Guarantee• * Easy scalability• * Premium Service dedicated to an individual customer• * 24 x 7 Dedicated Internet access• * 24 x 7 Networks Monitoring Service and Technical HelpdeskS.No. Speed Sharing Ratio Last Mile Interface Rate1 512 Kbps 1:1 Copper Ethernet 600002 1 Mbps 1:1 Copper Ethernet 90000 22
  23. 23. SERVICESAirtel PrepaidAirtel Prepaid, the Ready Cellular Card from Airtel comes to you from BhartiEnterprises, Indias leading integrated telecom service provider. Going mobile withAirtel Prepaid is a new way of life. With a host of great features, also simple to use,Airtel Prepaid makes everything that you dreamt and believed, possible. Total Cost Controluntill to make an STD/ISD call. Hassle-free calls are here to stay!You can control your Airtel Prepaid like never before. No more rentals or deposits –simply recharge as much as you need to from as low as Rs. 1, to as high as Rs.10,000/-.Pre activated STD/ISD without deposits or rentalsYou can now enjoy a pre-activated STD/ISD on your airtel Prepaid. No more payingdeposits or having a minimum balance in your account to make an STD/ISD call.Hassle-free calls are here to stay! for more information on STD/ISD rates in yourcircle new.Strong Network CoverageEnjoy complete clarity when calling with Airtel’s world-class technology andunbreakable network coverage that spans over 23 circles across the countryInstant Balance and Validity EnquiryYour account balance is updated on the screen of your handset at the end of eachchargeable call. You can also call 123 from your mobile phone and listen to the voiceannouncement or simply dial *123#, press OK or YES button and your accountbalance will be displayed on the screen of your handsetRecharge your Airtel PrepaidRecharging is Easy. The calling value on your card keeps reducing as you make callsor use any other chargeable service. Choose the Airtel Prepaid Recharge Couponthat’s right for you, from a variety of tailor– made recharge coupons with different 23
  24. 24. denominations, which are available at a number of outlets across your city. Simplyfollow the procedure mentioned below, to recharge your phone. • Gently scratch the silver panel on the reverse of the recharge card for a 16- digit number. Call 123 and choose your preferred language. • Follow the voice announcement and enter the 16-digit recharge number, when requested. Your prepaid account will be automatically recharged by the calling value amount and validity of your coupon.24-hour Recharge via ATMRecharge your airtel Prepaid round-the-clock at your nearest ATM. Just walk up toyour nearest ATM, insert the ATM card and enter your ATM PIN number. SelectMobile Recharge / Bill Pay from the main menu and follow the prompts to rechargeyour prepaid. This recharge option is available with all leading banks.Internet RechargeYou may log on to the Internet banking website of your bank and select the prepaidrecharge option to recharge your airtel prepaid. Many leading banks provide Internetbased recharging.Denomination Rs Calling value Rs Proc Fee Rs Service tax Rs Validity Days50 43.33 2.0 4.67 30100 88.66 2.0 9.34 30200 179.32 2.0 18.68 30300 269.99 2.0 28.01 30500 451.31 2.0 46.69 301000 904.62 2.0 93.38 30Prepaid Roaming 24
  25. 25. Airtel Prepaid comes reactivated with National Roaming, so you stay connected nomatter wherever you are. You can also send or receive MMS, check your email andaccess other GPRS services while roaming in India as you would in your own city.While traveling abroad you can receive calls & send or receive SMSAirtel Reduces Roaming Rates – Prepaid Plan in DetailsIndia’s largest GSM mobile service operator Airtel today launched two new prepaidoffers, keeping in mind the fact that over 110 million people across India use Airtel,making it the largest network in the country. These new plans will offer customersthe ability to make Roaming calls at the following rates i.e.Airtel to all Airtel (Local+STD) @ 60 paise /min and Airtel to all Others (Local+STD) @ 80paise/min.The Incoming calls while national Roaming would be charged @ 60paise/min.Airtel is not in the race with other service provider. Airtel is such a bigcompany but do not have any affordable plan for roaming, sms, call . Its a big shamefor airtel. Your plans are not affordable for students and general public. Please launchsome better and cheaper plans . Please look at small companies like Aircel and Ideathey have much better plans. 25
  26. 26. Airtel is very costly than others, you dont have any cheaper plan for roaming callsand sms finaly it is the matter of shame for such a big company, we r stil waiting forsome good schemesFollowing the announcement of “Airtel Reduces RoamingRates By Nearly 60% ” here is a 1st hand look at the two new Prepaid schemes,specially tailored to give upto 60% savings on National Roaming call charges. Airtel TurboAirtel TurboParticulars Unit 98 99Enrollment Fee Rs. 98 99Pulse 1 min 1 secTalktime 0 0Validity (Main 365 days 365 daysA/c)Free sms 200 local 200 localLocalA-A Rs. 0.50 0.01A-Others Rs. 0.60 0.012STDA-A Rs. 0.50 0.01A-Others Rs. 0.60 0.012SMSLocal Rs. 1.00 1.00National Rs. 1.50 1.50International Rs. 5 5RoamingLocal/STD – A-A Rs. 0.60 0.60Local/STD – A-O Rs. 0.80 0.80Incoming Rs. 0.60 0.60ISD Rs. Standard StandardAIRTEL has introduced a new STV in kolktata RC 78, which offers local A-A @35paisa/ works with all other SVVs(excluding RC 38,RC 98, RC 99). 26
  27. 27. Other ServicesAirtel brings you, a wide range of Services that will change the way youcommunicate. Try them and discover a whole new world of fun and excitement.Call management ServicesCall waiting, call hold, call divert and Caller Line Identification Presentation – allwith your Airtel prepaid connection.Voice MailWhen your handset is switched off, or you’re too busy to answer the phone, AirtelVoicemail will answer your calls and record a message. The best part is that theresno extra monthly cost for setting up Voicemail - you just pay for the phone call whenyou use the service.SMS (Short Messaging Service)Send messages quickly and easily using text, if its too noisy to talk or you dont havemuch time. Its the way to share those interesting one-liners, important reminders andrib-tickling jokes, with anyone, anytime, anywhere in the world.Subscription AlertsGet regular alerts on news, jokes, business, health and films on your airtel mobilephone with Subscription Services. SMS <SUB NEWS> to 53333 for News, <SUBJOKE> for Jokes, <SUB BIZ> for Business News, <SUB SPO> for Sports Alerts &<SUB VAASTU> for Vaastu tips.MMS (Multi-media Messaging Service):Jazz up your messages with pictures, images and video clippings, with MMS fromAirtel! To activate MMS on your phone, SMS MMS to 56465 and save servicesettings.Airtel Live!Make your mobile the most happening entertainment destination with Airtel Live!Airtel brings you the latest in entertainment and information services, right on yourphone! 27
  28. 28. Airtel Live! WAP Services:Download the latest ring tones, games, wallpapers, videos and much more. You canalso get news clips, watch live TV and download full songs on you phone. To getAirtel Live! settings on your phone, SMS Live to 56465 and save the settings thatyou receive as your preferred connection. Airtel Live! Portal can be accessed fromyou GPRS enabled phone, by sending a SMS FUN to 56465.Airtel Live! Voice Services:Just Dial 56465, and name the service. For e.g. say ring tones to download yourfavorite ring tones. You can also choose a variety of content options like Live CricketCommentary, latest National / International News, Movie Reviews or Stock market.Airtel Live! SIM Services:Access loads of fun content and exciting services like cricket, stocks, on your phoneat the touch of a few buttons with Airtel Live! SIM based Services on your SIM cardmenu. Airtel Live! SMS Services:You can enjoy a host of services by sending a keyword as an SMS to 56465! ChooseAstrology / Horoscope, Cricket, Bollywood / Hollywood / Indi Pop Ring tones. Incase you need assistance SMS, Help to 56465.Buy Music - Airtel Music ShopsBuying your favorite Hello Tune or Ring tone is as simple as recharging your phonewith talk time. Simply walk into your nearest Airtel Shop and walk out with yourfavorite song. Choose from Bollywood Hits to Indipop Remixes, Hard Rock toGujrati Garba, Bhajans to Jazz, Bhangra Beats to foot tapping Tamil Hits from a listof more than 18000 songs.Airtel Postpaid 28
  29. 29. Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting,innovative yet simple new ways to communicate, just when you want to, not justthrough words but ideas, emotions and feelings. To give you the unlimited freedomto reach out to your special people in your special way.Easy Billing :Enjoy a host of rich features only with Airtel e-bill. Register free on ‘My Airtel’section and view your monthly bill with call details for last three months. Sort yourcalls between personal and official or analyze your usage, at the click of a button. Tochange your tariff plan call our IVR at 121 and leave a request.Easy Payment Options. Anytime AnywhereYou can choose from a host of convenient payment options only with Airtel. Walkinto any Airtel relationship centre and make your payments by cash or credit card.Drop a cheque at any of the drop boxes for making payments or simply log on toMy Airtel section and pay instantly through your credit card.Standing InstructionsYou can give us standing instructions to debit your credit card account for yourmonthly Airtel bills. All you have to do is fill the Standing Instruction Form andmail, fax it to us or drop it any of our relationship centers.Electronic Clearing SystemFill an ECS form and mail, fax it to us or drop it any of our relationship centers todirectly debit your bank account for your monthly Airtel bill.Pay while roamingAirtel has introduced Anywhere payment that offers you the convenience of makingpayments while you roam. Walk in to any Airtel Relationship Centre in the country,make payments by cash or credit card and enjoy uninterrupted Airtel Services. notmisused. Should you exceed your credit limit, you will be informed via a voice or anon-voice message to make an interim payment and reduce your .Strong Network Coverage 29
  30. 30. Enjoy complete clarity when calling with Airtel .It offers you world class technologyand unbreakable network coverage that spans over 23 circles across the country.Long Distance Calling FacilityCall long distance calls in India and Overseas with STD / ISD facility on your Airtelphone. Widest Roaming - National and InternationalAirtels roaming service allows you to stay connected and use your mobile phone tomake or receive calls from almost anywhere in India and also over 160 countries,abroad.GPRS - RoamingUse Airtel Postpaids GPRS services, while roaming, to access the internet and officemails (eg. Blackberry services), from almost anywhere in India and abroad.Say it. In more than just words, with Services from AirtelAirtel brings you a wide range of Services that will change the way youcommunicate. Try them and discover a whole new world of fun and excitement.Call management ServicesCall waiting, call hold, call divert and Caller Line Identification Presentation, helpyou do more with your Airtel Postpaid connection!Conference callyou can hold a teleconference with 5 people simultaneously with Call Conferencingservice from Airtel. In fact, you can set up a conference even when the other five areusing a landline phone. To know more, call customer service at 121.Missed call alert 30
  31. 31. A missed call alert is a SMS that you will receive for all the calls that you missed.The SMS will detail the CLI and the time when the call was made. To activate, dial*135*2# then press the call button and wait for the request to be completed.Voice Mailwhen your handset is switched off, or you’re too busy to answer the phone, AirtelVoicemail will answer your calls and record a message. The best part is that thereextra monthly cost for setting up Voicemail - you just pay for the phone call whenyou use the service.SMS (Short Messaging Service)Send messages quickly and easily, using text, if its too noisy to talk or you dont havemuch time. Its the way to Share those interesting one-liners, important reminders andrib-tickling jokes, with anyone, anytime, anywhere in the world.Subscription AlertsGet regular alerts on news, jokes, business, health and films on your Airtel mobilephone with Subscription Services. SMS <SUB NEWS> for News, <SUB JOKE> forJokes, <SUB BIZ> for Business News, <SUB SPO> for Sports Alerts & <SUBVAASTU> for Vaastu tips to 3333.MMS (Multi-media Messaging Service):Jazz up your messages with pictures, images and video clippings, with MMS fromAirtel! To activate MMS on your phone, SMS MMS to 56465 and save servicesettings.Hello TunesTired of that boring old ‘tiring tiring’ on your phone? Well now when a friend calls,you can make them groove to the hottest new tracks burning up the music charts withHello Tunes from Airtel! You get a wide choice of songs in the Popular & NewArrivals categories that are updated regularly.Whats more, you can directly call the number for your kind of music, e.g. call678005 for ‘English New’ and 678001 for ‘Hindi New’. This would directly take youto your favorite artists Hello Tunes listing. 31
  32. 32. Copy a Hello TunesLike a tune you want, all you have to do is call 55055 and follow the simple voiceinstructions to copy your favorite Hello Tunes. Once inside the copy feature, just keyin the 10-digit Airtel mobile number you want to copy the Hello Tune from and youget the same Hello Tune assigned to your number.Gift a Hello TunesForget gifting chocolates, flowers and greeting cards. Say it with a song instead! Gifta Hello Tune to that special someone. Just call 55055 and choose the song that youwant to gift. Follow the simple voice instructions and key in the 10-digit Airtelmobile number that you want to gift the Hello Tune to. You will get an SMSnotification upon successful receipt of that gift.POSTPAID TARIFFAirtel Postpaid allows you to choose from a variety of affordable talk plans,convenient payment options and host of rich features. So get set to enjoy a world oflimitless possibilities!Reference Tariff Packages (RTP) ON TIME CHARGES Activation Charges Rs. 600 Membership Fee NA Security Deposit Rs. 1000 MONTHLY CHARGES (FIXED) Rs. 524 Bill plan Charge Rs. 425 Monthly Rental Rs. 99 Clip NA MONTHLY CHARGES (OPTIONAL) Clip Rs. 99 Airtel GSM / Landline / CDMA (10 WLL Digit) Local Rates Rs. 1.99 Rs 1.99 Rs 1.99 STD RATES 50 – 200 Km 200 – 500 Km 500 + Km 32
  33. 33. ISD USA, Canada, Europe (Fixed Line), Rs. 7.20 Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, new Zealand Gulf, Europe (Mobile), SAARC Rs 9.99 Countries, Africa & Rest of the world Cuba, Sao tome & Principle, Guinea Rs. 40.00 Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Island, Tuvalu, Tokelau, Norfolk Island, Sakhalin SMS Local Rs. 1.50 National Rs. 2.00 International Rs. 5.00 Value Added Services (Rs.) Rs. 3.00Airtel One Standard 150ONE TIME CHARGESActivation Charges Rs 250Membership Fee Rs 250 (Converts into security after 24 months)Security Deposit NAMONTHLY CHARGES (FIXED) Rs. 150Bill Plan Charge Rs. 51Monthly Rental Rs. 99Clip NAMONTHLY CHARGES (OPTIONAL)Clip Rs. 50Bissau, Diego Garcia, Nauru, SolomonIslands, Vanuatu, Cook Islands, Tuvalu,Tokelau, Norfolk Island, SakhalinSMSLocal Rs 1.50National Rs 2.00Intentional Rs. 5.00VAS Rs. 3.00 33
  34. 34.  This Bill Plan is also available under Advance Rental of Rs. 900 for 2 years.LOCAL PACKAirtel to other local mobiles (non Airtel) At Rs 1 / min Monthly rental Rs 25 per months/- STD PackAirtel to other mobiles (non Airtel) & fixed lines nos. at Rs 2 / min. Monthly rental Rs 75 per month/- Special offer for Airtel Telephone service customers for availing Airtel Mobile servicesIf you already have Airtel Telephone service, you can buy a new Airtel Mobileconnection under Airtel One Standard 150 Plan.Benefits: Non security deposit. No membership / activation fee Enjoy calls to your Airtel fixed line no. at just 60 P / min. Monthly rent of Rs 25 for reduced call rates to your Airtel fixed line has been waived off for 1 year.For details, call us 516-12345Advance Rental benefits (1year scheme)Pay an advance rent of Rs 999 and enjoy Airtel One Standard 150 plan at Zeromonthly rental for one year.Advance rental of Rs 999 gives you a rental discount of Rs 150 every month for thenext 2 months. All other options and charges are as per the existing Airtel OneStandard 150 Plan.AIRTEL ON STANDARD 249ONE TIME CHARGESActivation Charges Rs 250Membership Fee Rs 250 (Converts into security after 24 months)Security Deposit NAMONTHLY CHARGES (FIXED) Rs. 249 34
  35. 35. Bill Plan Charge Rs. 150Monthly Rental Rs. 99Clip NAMONTHLY CHARGES (OPTIONAL)Clip Rs. 50 Airtel GSM / Landline / CDMA (10 WLL Digit)LOCAL RATES Re. 1.00 Rs. 1.25 Rs. 1.25STD RATES50-200Km Rs. 2.00 Rs. 2.40 Rs. 2.40200 – 500 Km Rs. 2.00 Rs. 2.40 Rs. 2.40500 + Km Rs. 2.00 Rs. 2.40 Rs. 2.40ISDUSA, Canada, Europe (Fixed Line), Rs. 7.20Australia, Singapore, Hong Kong,Thailand, Malaysia, Indonesia, newZealandGulf, Europe (Mobile), SAARC Rs 9.99Countries, Africa & Rest of the worldCuba, Sao tome & Principle, Guinea Rs. 40.00Bissau, Diego Garcia, Nauru, SolomonIslands, Vanuatu, Cook Island, Tuvalu,Tokelau, Norfolk Island, SakhalinSMSLocal Rs. 1.50National Rs. 2.00International Rs. 5.00Value Added Services (Rs.) Rs. 3.00You also enjoy 25 FREE local mobile to mobile SMS. 35
  36. 36. Airtel 3G Tariff Plan – Net Setter and MobileAirtel provides the latest technology of 3G and facilitates users by different prepaidand postpaid tariff plans. The service is a key feature for people who want to stay intouch with their friends and family all time in a day. There are many cellularcompanies provide such a facility, and Airtel is one of them. The Airtel 3G tariff isvery simple and acceptable for users. The rates are very low and have coverage allover India. The new services of 3G make it easy for people to download the lateststuff related to their study and entertainment. You can download songs and uploadyour pictures at the faster speed.The tariff plan for such services is of two types one is postpaid and other is prepaid.In postpaid tariff plans, you have to pay bill of your internet package according toyour usage. To get this service you have to submit some security in the companysales shop first, while in prepaid services you can recharge your balance and canentertain service without waiting for anything. Have a look on the Airtel 3g tariffplan, you will find two types of services one is prepaid. In prepaid services, there aretwo kinds of packages available, one is volume based while other is a budget baseplan. 36
  37. 37. In Airtel prepaid tariff plan of volume base, you have a different selectionaccording to your use. You can calculate your internet use with the help of acalculator available at Airtel website. You can estimate your internet usage by addinginformation like emailing per day and some other information like approximatebuffering and online hours. The calculator will calculate best package for you. Youcan also consult it with Airtel prepaid tariff plan to know its cost. Volume basedpackage can be beneficial if you know you exactly use of the internet.Other Airtel 3G tariff plans are price based. You can select the plan according to yourbudget plan. These new competitive rates make it easy for user to select and enjoythe services everywhere. These tariff plans are mostly limited, to some extent, likesome may be providing you one day service or some of these will provide one weekservice. So try to investigate first about these packages before selecting one of them.Both Airtel prepaid plans and postpaid plans have attractive offers with differentcall rates, this offer will make you easier in selecting these rates.The 3G technology makes faster the internet service now. You should select anAirtel 3G tariff according to its coverage, if you are living in some remote area thanits no problem with Airtel internet providers. You can get better service even invillages and hilly regions also, if EDGE service is failed to operate you can useGPRS service everywhere in the country. The difference is this that EDGE service isfaster than GPRS service. It is better for you to investigate first about internetProvider Company and its devices in your area. Airtel is most renowned because itcovered larger area of country and people like it due to cheap Airtel 3G tariff plans. 37
  38. 38. Airtel 3g USB ModemsNow choose speed from an exciting range of airtel 3G USB modemsairtel 3G USB modem 7.2 Mbps – E1731Now choose superfast speed with select features on airtel 3G USB modem 7.2 Mbpsairtel 3G USB modem 3.6 Mbps – E153Now choose speed with select features on airtel 3G USB modem 3.6 Mbps3G Data Card Plans1-Rs. 9 free 10 Mb2-Rs.45 free 30 Mins3-Rs. 37 free 30Mb4-Rs.94 free 150Mb5-Rs.64 free 80Mb6-Rs.198 free 500Mb7-Rs.450 free1200Mb8-Rs.750 free 4GB 38
  39. 39. 9-Rs.675free 2.5GB10-Rs.250free 300Mb11-Rs.1245 free 10GB(Airtel 3G Data Card ) PRODUCT LIFE CYCLEThe pattern of cell phone subscriber growth observed elsewhere in the world revealsthat the growth in the market is initially slow followed by a sharp acceleration, but sofar that has not happened in India. As far as the Product Life Cycle is concerned.Indians are at the beginning of the maturity stage.INRTRODUCTION GROWTH MATURITY DECLINE 39
  40. 40. MARKETING STRATEGIES ADOPTED BY BHARTIBharti has spent a considerable amount on advertising its mobile phone service,Airtel. Besides print advertising, the company had put up large no of hoardings andkiosks in and around Delhi.The objective behind designing a promotion campaign for the ‘Airtel’ services is topromote the brand awareness and to build brand preferences.It is trying to set up a thematic campaign to build stronger brand equity for Airtel.Since the cellular phone category itself is too restricted, also the fact that a Cellular 40
  41. 41. phone is a high involvement product, price doesnt qualify as an effectivedifferentiator. The image of the service provider counts a great deal. Given the Cellphone category, it is the network efficiency and the quality of service that becomesimportant. What now the buyer is looking at is to get the optimum price-performance package. This also serves as an effective differentiatorBrand awareness is spread through the campaigns and brand preference throughbrand stature. Airtels campaign in the capital began with a series of teaserhoardings across the city, bearing just the companys name and without explainingwhat Airtel was. In the next phase the campaign associated Airtel with Cellular onlythereafter was the Bharti Cellular connection brought up. Vans with Airtel logosroamed the city, handing out brochures about the company and itsservices to all consumers. About 50,000 direct callers were sent out. When the namewas well entrenched in the Delhiites’s mind, the Airtel campaign began to focus onthe utility of Cell phone.In the first four months alone Airteis advertisement spend exceeded Rs. 4 crores.Asof today the awareness level Is 60% unaided. This implies that if potential orknowledgeable consumers are asked to name a Cellular phone service provider that ison the top of his/her mind 60% of them would name Airtel. As for aided it -is 100%(by giving clues and hints etc.).Brand strength of a product or the health of a brand is measured by the percentagescore of the brand on the above aided and the unaided tests. The figures show thatAirtel is a healthy and a thriving brand.Every company has a goal, which might comprise a sales target and a game plan withdue regard to Its competitor. Airtels campaign strategy is designed keeping in mindits marketing strategy. The tone, tenor and the stance of the visual ads are designedto convey the image of a market leader in terms of its market share. It tries to portraythe image of being a "first mover every time" and that of a "market leader".The status of the product in terms of its life cycle has just reached the maturity stagein India. It is still on the rising part of the product life cycle curve in the maturitystage. 41
  42. 42. The diagram on the left hand side shows the percentage of the users classified intoheavy, medium and low categories. The right hand side shows the revenue shareearned from the three types of users.Airtel, keeping in mind the importance of the customer retention, values its heavyusers the most and constantly indulges in service innovation. But, since heavy userscomprise only 15 - 20% of the population the other segment cannot be neglected.The population which has just realized the importance of cellular phones has to beroped in. It is for this reason that the service provider offers a plethora of incentivesand discounts. Concerts like the "Freedom concert" are being organized by Airtel inorder to promote sales. The media channel is chosen with economy in mind. Thetarget segment is not very concrete but, there is an attempt to focus on those who canafford. The print advertisements and hoarding are placed in those strategic areaswhich most likely to catch the attention of those who need a cellular phone. Theproduct promise (which might cost different 1 higher) is an important variable indetermining the target audience.Besides this, other promotional strategies that Airtel has adopted are. • People who have booked Airtel services have been treated to exclusive premiers of blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent fliers programs. • There have been educational campaigns, image campaigns, pre launch advertisements, launch advertisements, congratulatory advertisements, promotional advertise-ments, attacking advertisements and tactical advertisements. TELECOMMUNICATION MARKET IN INDIAThe Indian telecommunications Network with 250m telephone connections is thefifth largest in the world and is the second largest among the emerging economies ofAsia. Today it is the fastest growing market in the world and represents uniqueopportunities for UK companies in the stagnant global scenario. Tele-density, whichwas languishing at 2% in 1999, has shown an impressive jump to 9.5% in 2007 and10.5% in 2009 and is set to increase to 20% in the next five years beating the Govt. 42
  43. 43. target by three years. Accordingly, India requires incremental investments of USD20-25 bln for the next five years.Private operators have made mobile telephony the fastest growing (over 164% p.a.)in India. With more than 33 million users (both CDMA and GSM), wireless is theprincipal growth engine of the Indian telecom industry. Given the current growthtrends, cellular connections in India will surpass fixed line by late 2004/early 2005.Intense competition between the four main private groups - Bharti, Vodafone, Tataand Reliance and with the State sector incumbents-BSNL and MTNL has broughtabout a significant drop in tariffs. There has been almost 74% in cell phone charges,70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for theconsumers. GSM MARKET IN INDIA Regional Interest Groups - GSM IndiaWith a population of around 1.1 billion growing at roughly 1.7 per cent a year, Indiais potentially one of the most exciting GSM markets in the world. After two ratherdifficult years, the past 12 months have seen the regions promise beginning to cometo fruition. Much of this success can be attributed to the stabilization of the licensingand regulatory environment.Indias telecommunications have undergone a steady liberalization since 1994 whenthe Indian government first sought private investment in the sector. More significantliberalization followed in 1996 with the licensing of new local fixed line and mobile 43
  44. 44. service providers. However, it has been the governments New Telecom Policy(1999) that has had the most radical impact on the development of GSM services.The policys mission statement is affordable communications for all, There is agenuine commitment to creating a modern and efficient communicationsinfrastructure that takes account of the convergence of telecom, IT and media. Inaddition, the policy places significant emphasis on greater competition for both fixedand mobile servicesCompetition in the mobile sector has already had a visible impact on prices with callscurrently costing less than 9 cents per minute.India fastest growing GSM martThis means that service costs have fallen by 60 per cent since the first GSM networksbecame live in 1995. It also helps explain why a recent Telecom Asia survey revealedthat more than 70 per cent of Indian mobile subscribers felt that prices were now at areasonable level.The good news is that subscriber growth is beginning to look healthy. With Indiaslow PC penetration and high average Internet usage -at 14-20 hours a month per userit is comparable to the US -the market for mobile data and m-commerce looksextremely promising. WAP services have already been launched in the subcontinentand the first GPRS networks are in the process of being rolled out. In the year ahead,GSM India will work with its members to realize the potential of early packetservices in anticipation of the award of 3GSM licenses.India is expected to have 145 million GSM (global system for mobilecommunications) customers by 2007-08 compared to 26 million subscribers as onMarch 2005, according to the Global Mobile Suppliers Association. "For GSM, Indiais a success story. It is one of the fastest growing markets with its subscriber basedoubling in 2005. At this pace, the target of 150 million subscribers by 2007-2008 isdefinitely achievable," Alan Hadden, president of GSA, said at a news conference inNew Delhi. Globally, the GSM market reached 1 billion users in February 2005, hesaid, adding GSM accounted for 80 per cent of the new subscriber growth in2005."Almost every Latin American operator has chosen GSM. In North AmericaGSM growth is bigger than CDMA (code division multiple access)," he said.Commenting on the raging debate over GSM versus CDMA in mobile services arena, 44
  45. 45. Hadden said: "GSM is the worlds most successful mobile standard with over 1billion users, and is an open mobile standard. It also supports automatic internationalroaming, which is a major contributor to business plans Bharti is almost thereBut first, the EDGE! Bharti Cellular is close to commercially launching its EDGEservice in Delhi and Mumbai by end May or early June, sources said. The companywas the first to conduct field trials in November with its equipment supplier Ericsson.Idea too held EDGE field trials in February this year with its vendor Nokia.Vodafone and BPL are yet to hold the trials. The two companies would eventuallymigrate to EDGE, but perhaps after seeing the response to Bharti’s service.EDGE holds the promise of delivering data speeds of around 170-180 kbps (asagainst the theoretical speed of around 380 kbps) which, if achieved, promises thelaunch of many data applications. The scalable cost of migrating from GPRS toEDGE is not too high and mainly comprises software upgrades in case of a modernnetwork such as Bharti and Hutch, claimed chairman of GSA India chapter RakeshMalik. PROFILE AND ORGANISATIONAL STRUCTURE OF THE COMPANY Chief Executive Officer (C.E.O) ↓ 45
  46. 46. Manager → Marketing Manager ↓ Project Manager ↓ Project Deader ↓ Team Leader ↓ Team Member ↓ Quality Controller ↓ TesterBusiness DivisionsTelecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The BhartiGroup has a diverse business portfolio and has created global brands in thetelecommunication sector. Bharti has recently forayed into retail business as BhartiRetail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It hassuccessfully launched an international venture with EL Rothschild Group to export 46
  47. 47. fresh agri products exclusively to markets in Europe and USA and has launchedBharti AXA Life Insurance Company Ltd under a joint venture with AXA, worldleader in financial protection and wealth management.Bharti Airtel is one of Inate sector providers of telecommunications services based onan aggregate of 42,685,530 customers as on May 31, 2008, consisting of 40,743,725GSM mobile and 1,941,805 broadband & telephone units (SBU’s) - mobile services, broadband & telephone services (B&T) &enterprise services. The mobile services group provides GSM mobile services acrossIndia in 23 telecom circles, while the B&T business group provides broadband &telephone services in 94 cities. The enterprise services group has two sub-units -carriers (long distance services) and services to corporate. All these services areprovided under the Airtel brand. The businesses at Bharti Airtel have been structuredinto three individual strategic.The Bharti Airtel Group :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.Offers high speed broadband internet with a best in class network..Focuses on delivering telecommunications services as an integrated offeringincluding mobile, broadband & telephone, national and international long distanceand data connectivity services to corporate, small and medium scale enterprises.The Company compliments its mobile and broadband & telephone services withnational and international long distance services. It has over 35,016 route kilometersof optic fiber on its national long distance network. For international connectivity toeast, it has a submarine cable landing station at. For international connectivity tothewest, the Company is a member of the South East Asia-Middle East-Western x.BUSINESS DECISION • Bharti Enterprises announces new Apex Level Strategic Organization Structure. • Bharti announces a Strategic Roadmap for its Retal Venture. • Bharti Group has an arrangement to buy 5.6% direct interest of Vodafone in Bharti Airtel Limited for US $ 1.6billion 47
  48. 48. Fact sheetName Bharti Airtel Limited.Business Provides mobile, broadband & telephone (fixed line) andDescription enterprise services (carriers & services to corporate)Established July 07, 1995, as a Public Limited Company Rs. 184,202 million (year ended March 31, 2008-Audited)Proportionate Rs. 117,255 million (year ended March 31, 2007-Audited)Revenue As per Indian GAAP Accounts Rs. 74,407 million (year ended March 31, 2008-Audited)Proportionate Rs. 42,250 million (year ended March 31, 2007-Audited)EBITDA As per Indian GAAP AccountsShares in Issue 1,895,934,157 as at March 31, 2008 The Stock Exchange, Mumbai (BSE)Listings The National Stock Exchange of India Limited (NSE)Market Approx. Rs1, 597 billion. Closing BSE share price= Rs.842.50Capitalization 40,743,725 GSM mobile and 1,941,805 broadband & telephoneCustomer Base (fixed line) customers (Status as at month ended May 31, 2008) Provides GSM mobile services in all the 23 telecom circles in India, and was the first private operator to have an all IndiaOperational presence.Network Provides broadband (DSL) and telephone services (fixed line) in 94 cities in India.SALES DEPARTMENT AND STRATEGY 48
  49. 49. A. Major Accounts (Direct Channel) • Handles corporate (named and famed) accounts • Forecasting of sales • Mapping the accounts • Providing after sales support to the subscribers. • Maintaining call reports for records. • Providing Feedback to the marketing department regarding the requirement of the market.B.IDC (indirect Channel) • Handling distribution • Maintaining records and level check of the channel partner • Liaisoning between the channel partner and the company. • Target achievement Training the executives of the channelC.Distribution Support1. Logistics • Monitor handset and SIM card requirements of channel partners and co- ordinate with stores. • Settle areas of concerns such as incentive claims of channel partners2. Rental • Provide cellular services (SIM cards) on rent. • Provide cellular phones on rent • Useful for people visiting Delhi for a short interval.3. Telesales • Call customers and generate sales lead. • Follow up with the customers, if they need any assistance • Pass on the sales lead to the channel department.4. Audit 49
  50. 50. • Consultant to the AirTel showrooms. • Monitor the operations at the AirTel distribution outlets Organize training. 5. Retail • Locate shops to open retail counters. • Monitor the retail counters. MARKET SEGMENTATION Segmentation is beneficial because of better predictability of the target consumer group, minimization of risk exposure, better ability to fine-tune a product / service to the requirement of target buyer and the resultant ease in designing a proper designing marketing mix strategy In this case segmentation is on the bade of income. In evaluating different market segments the company looks at two factors The overallattractiveness of the segments and the companys objectives & resources The present market for Cellular phones, pagers and conventional phones is as follows X Market Segment Targeted Premium Middle Economy Upper Lower Upper Lower Upper LowerCellular Phones product Mximize market share Create X X X - Maximize profits- whole -Pager X X X X - -Conventional and trial awareness X X X X defending market -share XPhones MARKETING OBJECTIVES AND STRATEGIES Product Offer a basic Offer value added Increase in product/ service. services number of value added services. Price Charge cost- plus Price to penetrate Price to match or market best competitors 50
  51. 51. Distribution Build selective Build Intensive Build more distribution distribution. intensive distribution.Advertising Build product Build awareness Stress brand awareness among and interest in the differences and early adopters mass market benefits. and dealers.Sales Promotion Use heavy sales Increase to build Increase to promotion to and maintain encourage brand- entice people to relationships with switching. subscribe. customer. DISTRIBUTION Company Franchisee Distributor Dealers Dealer 51
  52. 52. Customer CustomerThe-company whose operations are concentrated in and around Delhi. It 27Franchisees and 15 Distributors- They also have 8 instant access cash card counters-Each franchises or distributor can have any number of dealers under him as long asthe person is approved by the Airtel authority. Each franchise has to invest RupeesTen Lakhs. To obtain a franchise and should employ an officer recruited by Airtel.This person acts as a liaison between the company and the franchises. The franchisescan it any number of dealers as long as their territories do not overlap. Butunfortunately Airtel has not been very successful in controlling territorial overlaps ofdealers. 52
  53. 53. Promotional strategy. For this the Company contributes 75% of the money and thefranchise contributes 25% of the money. The dealers under the franchisee receive thesame commission. The franchises and the dealer obtain the feedback from thecustomers and they are sent through the liaison officer on a day-to-day basis to Airtel.The dealer has to invest Rupees. OneLakh as an initial investment. The dealers ofAirtel are not allowed to provide any other operators service.Target set for distributors and the dealers is 100 -150 activations per month. Hencethe dealers can also go for their own promotions like banners and discounts onfestivals etc. The dealer provides service promptly. The consumer on providing thebill of purchase for the handset and proof of residence has only to wait an hour beforegetting connected. The staffs of the dealers and the franchisees are provided trainingby the Airtel personnelWHAT DOES AIRTEL OFFER?With Airtel, the subscriber wouldnt just get a personal phone that lets him/her be intouch, always, but also gets a host of benefits that let him/her manage his/her timelike never before.An Airtel subscriber is provided with a Subscriber Identity Module Card (SIM card) -that is the key to operating his/her cellular phone. His card activates Airtel cellularservices and contains a complete micro-computer chip with memory to enable one toenjoy ones cellular phone thoroughly. Each SIM card contains a PIN code (PersonalIdentity Number) which may be entered by one. Just plug your SIM card into yourcellular phone, enter the PIN code and it becomes your personal phone. COMPETITORS OF BHARTI AIRTELIndia has become one of the fastest-growing mobile markets in the world. The mobileservices were commercially launched in August 1995 in India. In the initial 5-6 yearsthe average monthly subscribers additions were around 0.05 to 0.1 million only andthe total mobile subscribers base in December 2002 stood at 10.5 millions. However,after the number of proactive initiatives taken by regulator and licensor, the monthlymobile subscriber additions increased to around 2 million per month in the year2003-04 and 2004-05. 53
  54. 54. Although mobile telephones followed the New Telecom Policy 1994, growth wastardy in the early years because of the high price of hand sets as well as the high tariffstructure of mobile telephones. The New Telecom Policy in 1999, the industryheralded several pro consumer initiatives. Mobile subscriber additions started pickingup. The number of mobile phones added throughout the country in 2003 was 16million, followed by 22 million in 2004, 32 million in 2005 and 65 million in 2006.The only country with more mobile phones than India with 246 million mobilephones is China – 408 million.India has opted for the use of both the GSM (global system for mobilecommunications) and CDMA (code-division multiple access) technologies in themobile sector. In addition to landline and mobile phones, some of the companies alsoprovide the WLL service.The mobile tariffs in India have also become lowest in the world. A new mobileconnection can be activated with a monthly commitment of US$0.15 only. In 2005alone 32 million handsets were sold in India. The data reveals the real potential forgrowth of the Indian mobile market.In March 2008 the total GSM and CDMA mobile subscriber base in the country was375 million, which represented a nearly 50% growth when compared with previousyear.In April 2008 the Indian Department of Telecom (DoT) has directed all mobile phoneservice users to disconnect the usage of unbranded Chinese mobile phones that do nothave International Mobile Equipment Identity (IMEI) numbers, because they pose aserious security risk to the country.Mobile network operators therefore planned to suspend the usage of around 30million mobile phones (about 8 % of all mobiles in the country) by April 30.PRESENT SCENARIOIn the fixed line arena, BSNL and MTNL are the incumbents in their respective areasof operation and continue to enjoy the dominant service provider status in the domainof fixed line services. For example BSNL controls 79% of fixed line share in thecountry. 54
  55. 55. On the other hand, in the mobile telephony space, Airtel controls 21.4% subscriberbase followed by Reliance with 20.3%, BSNL with 18.6%, Vodafone with 14.7%subscriber base (as per June 2005 data).Following list shows the GSM subscriber figure till Jan 20101) Bharti Airtel 88382758 33.04%2) Vodafone Essar 63340024 23.68%3) BSNL 42673357 15.95%4) IDEA 40016153 14.96%5) Aircel 16761397 6.27%6) Reliance Telecom 10353841 3.87%7) MTNL 4003807 1.50%8) BPL 2007303 0.75% All India 267538640AIRTELBharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is Indias largestcellular service provider with more than 92 million subscribers as of February 2009.It also offers fixed line services and broadband services. It offers its TELECOMservices under the Airtel brand and is headed by Sunil Bharti Mittal. The companyalso provides telephone services and Internet access over DSL in 14 circles. It also 55
  56. 56. acts as a carrier for national and international long distance communication services.The company has a submarine cable landing station at Chennai, which connects thesubmarine cable connecting Chennai and Singapore.The businesses at Bharti Airtel have been structured into three individual strategicbusiness units (SBU’s) - Mobile Services, Airtel Telemedia Services & EnterpriseServices. The mobile business provides mobile & fixed wireless services using GSMtechnology across 23 telecom circles while the Airtel Telemedia Services businessoffers broadband & telephone services in 95 cities and has recently launched Indiasbest Direct-to-Home (DTH) service, Airtel digital TV. The company provides end-to-end data and enterprise services to the corporate customers through its nationwidefiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs,ISP and international bandwidth access through the gateways and landing station.Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriberbase, behind China Mobile and China Unicom. In India, the company has a 24.6%share of the wireless services market, followed by 17.7% for RelianceCommunications and 17.4% for Vodafone Essar.In its monthly press release, following statistics have been presented for end of April2007.Bharti Airtel added the highest ever net addition of 5.3 million customers in a singlequarter (Q4-FY0607) and also the highest ever net addition of 18 million totalsubscribers in 2006-07. The company will invest up to $3.5 billion this fiscal (07-08) in networkexpansion. It has an installed base of 40,000 cellsites and 59% population coverage. After the proposed network expansion, an additional 30,000 towers will result inthe company achieving 70% population coverage. Bharti has over 39 million users as on March 31, 2007. It has set a target of 125 million subscribers by 2010. Prepaid customers account for 88.5% of Bharti’s total subscriber base, anincrease from 82.7% a year ago. ARPU has dropped to Rs 406. 56
  57. 57. Non-voice revenues, (SMS, voice mail, call management, hello tunes and AirtelLive) constituted 10% of total revenues during Q4, lower than 10.7% in the Q4 of theprevious year. Blended monthly minutes of usage per customer in Q4 was at 475 minutes. Has completed 100% verification of its subscribers and in the processdisconnected three lakh (300,000) subscribers. Bharti Airtel’s is now connecting India to Europe under its Europe India gateway[EIG]project. The company is building 15,000 km 3.84 Terrabit OFC sub-marinecable system connecting Europe [London] to India via the Middle East. The project isexpected to cost $700 million, which is to be completed by Q2-2010. Alcatel Lucentand Tyco are the telecom vendors for the project.The Airtel subscriber base according to TRAI - Telecom Regulatory Authorityof India as of February 2009[7] was: Kolkata - 2,456,896 Maharashtra - 5,690,609 Gujarat - 3,981,660 Andhra Pradesh - 8,892,353 Karnataka - 9,820,812 Tamil Nadu - 6,003,040 Kerala - 2,169,633 Punjab - 3,754,405 Haryana - 1,248,906 Uttar Pradesh (West) - 2,256,862 Uttar Pradesh (East) - 5,722,386 Rajasthan - 6,704,274 Madhya Pradesh - 4,470,561 West Bengal & Andaman and Nicobar - 3,501,560 Himachal Pradesh - 951,121 Bihar - 7,152,245 Orissa - 2,811,453 Assam - 1,448,389 57
  58. 58. North Eastern States - 890,054 Jammu & Kashmir - 1,590,935The total is 91,114,971 or 24.2% of the total 375,742,592 GSM + CDMA mobileconnections in India till February 2009; and presently the Number 1 operator inIndia. In 2009 Airtel also launched in Sri Lanka. presently the Number 1 operator in India. In 2009 Airtel also launched in SriLanka.VODAFONEVodafone Essar, previously Hutchison Essar is a cellular operator in India that covers23 telecom circles in India. Despite the official name being Vodafone Essar, itsproducts are simply branded Vodafone. It offers both prepaid and postpaid GSMcellular phone coverage throughout India with good presence in the metros.Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digitalGSM technology, offering voice and data services in 23 of the countrys 23 licenseareas. It is among the top three GSM mobile operators of India.Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indiannationals, 15%. On February 11, 2007, Vodafone agreed to acquire the controllinginterest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion,piping Reliance Communications, Hinduja Group, and Essar Group, which is theowner of the remaining 33%. The whole company was valued at USD 18.8 billion.[2] The transaction closed on May 8, 2007.The Vodafone subscriber base according to COAI - Cellular Operator Association ofIndia as of Nov 2008 was:City/Circle Nov2008 Mumbai 4115671 Delhi 3741037 Kolkata 2481872 Chennai 1472340 58
  59. 59. Gujarat 7241167 A.P. 3430016 Karnatka 3333207 Punjab 1944733 Haryana 1878339 U.P.(E) 5589567 Rajasthan 4343407 UP (W) 3825035 West Bengal 4000994 Maharashtra 3833719 Tamil Nadu 4509341 Kerala 2704412 Orissa 137445 Assam 454878 MP 30213 Bihar 76349 Himachal Pradesh NewThe total is 5,46,24,809 or 23.38% of the total 233,676,930 GSM mobile connectionsin India till Sept 2008.Nov 2008 Vodafone Essar 58764164 or 23.57% of total249349436Mahanagar Telephone Nigam LimitedMTNL is an Indian Government-owned telephone service provider in the cities ofMumbai, Thane, New Delhi, and Navi Mumbai in India. The company was amonopoly until 2000, when the telecom sector was thrown open to other serviceproviders.MTNL provides fixed line telephones, cellular connection of both GSM —Dolphin(Postpaid) and Trump (prepaid) and WLL (CDMA) — Garuda-FW AndGaruda-Mobile and internet services through dialup and DSL — Broadband internetTriBand. MTNL has also started Games on demand, video on demand and IPTV 59
  60. 60. services in India through its Broadband Internet service called Triband. Phonenumbers belonging to MTNL start with the prefix 2 infixed line telephonesand WLL& in GSM Mobile servises its start from 9869/9969/9868/9968. MTNL also providesother services such as VPN,Internet Telephony- VOIP and leased lines throughBSNL and BSNL.MTNL has been actively providing connections in both Mumbai and New Delhiareas and the efficiency of the company has drastically improved from the days whenone had to wait years to get a phone connection to now when one can get aconnection in even hours. Pre-activated Mobile connections are available at manyplaces across both Metros. MTNL has also unveiled very cost-effective BroadbandInternet access plans (TriBand) targeted at homes and small businesses. At presentMTNL enjoys the largest of the market share of ISP services in Mumbai and Delhi.Former Indian Communications Minister Thiru Dayanidhi Maran had declared year2007 as "Year of Broadband" in India and MTNL is gearing up to provide fivemillion Broadband connectivity by the end of 2007. MTNL has upgraded existingTriBand (Broadband) connections for a speed of up to 2 MB/s without any extra cost.This 2 MB/s broadband service is being provided by MTNL at a cost of just US$5.00per month.MTNL started 3G services in India under the name of "MTNL 3G Jadoo" Servicesoffered include Video call, Mobile TV and Mobile Broadband with high speed dataconnectivity up to 2 Mbit/s speed from 11th December 2008, getting India 3G map ofthe world. MTNL plans to offer 3G services across India by mid-2009. After thatMTNL Mobile users would be able to surf the internet with speeds up to 2 Mbit/s ontheir smart phones. MTNL will be installing 15 lakh 3G lines in the first phase of its3G roll-out in Mumbai and Delhi (which currently have 40 lakh existing mobilelines).IDEA CellularIt is a publicly listed company, having listed on the Bombay Stock Exchange (BSEand the National Stock Exchange (NSE) in March 2007. 60