The document provides an overview of the mobile services industry and Bharti Airtel in India. It discusses that India has seen rapid growth in mobile subscribers, exceeding expectations. Key points include: Bharti Airtel is a leading mobile service provider in India with over 25 million subscribers; It operates across various business segments including mobile, broadband, enterprise services; The mobile market is growing rapidly with competition between providers like Airtel, Reliance, and Idea Cellular.

1. Chapter 1
Introduction

2. 1.1 About the Industry
India has a fast-growing mobile services market with excellent potential for the future. With
almost five million subscribers amassed in less than two years of operation, India's growth tempo
has far exceeded that of numerous other markets, such as China and Thailand, which have taken
more than five years to reach the figures India currently holds. The number of mobile phone
subscribers in the country would exceed 50 million by 2005 and cross 300 million by 2010,
according to Cellular Operators Association of India (COAI).
According to recent strategic research by Frost & Sullivan, Indian Cellular Services Market, such
growth rates can be greatly attributed to the drastically falling price of mobile handsets, with
price playing a fundamental role in Indian subscriber requirements. Subscribers in certain regions
can acquire the handset at almost no cost, thanks to the mass-market stage these technologies
have reached internationally. The Indian consumer can buy a handset for $150 or less. This
should lead to increased subscribership. This market is growing at an extremely fast pace and so
is the competition between the mobile service providers.
With the presence of a number of mobile telephony services providers including market leaders
like Airtel, Reliance, Idea Cellular, Tata Indicom, Spice Communications etc. who are providing
either of the two network technologies such as Global System for Mobile Communications
(GSM) and Code Division Multiple Access (CDMA). In cellular service there are two main
competing network technologies: Global System for Mobile Communications (GSM) and Code
Division Multiple Access (CDMA). Understanding the difference between GSM and CDMA will
allow the user to choose the preferable network technology for his needs.
Global System for Mobile Communication (GSM) is a new digital technology developed by the
European community to create a common mobile standard around the world. It helps you achieve
higher sell capacity and better speech quality and one can enjoy crystal clear reception on ones
mobile phone. It automatically solves the problem of eavesdropping on ones calls.
Before analyzing the telecom licensing framework in India, it is imperative that one must
examine what is a license. License issued by the government is an authority, given to a person
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3. upon certain conditions to do something which would have been illegal or wrongful otherwise.
For example, a driver’s license issued by the government, gives the authority to a person to drive
a motor vehicle. There are three main types of license fee which the government charges: (I)
initial license fee, which generally is non-refundable, (ii) annual license fee, and (iii) additional
fee for allocation of spectrum.
Licensing framework has been an integral part of India’s telecommunication law. Under the
Indian Telegraph Act, 1885, section 4 gives power to the government to grant license to any
person to establish, maintain or use a telegraph.
Code Division Multiple Access (CDMA) describes a communication channel access principle
that employs spread spectrum technology and a special coding scheme (where each transmitter is
assigned a code). It is a spread spectrum signaling, since the modulated coded signal has a much
higher bandwidth than the data being communicated. CDMA is the current name for mobile
technology and is characterized by high capacity and small cell radius. It has been used in many
communication and navigation systems, including the Global Positioning System and the
omnitracs satellite system for transportation logistics.
Indian mobile telephony market is increasing day by day and there is more to happen with
technological up gradations occurring nearly every day and the ever-increasing demand for easier and
faster connectivity, the mobile telephony market is expected to race ahead.
National Telecom Policy 1994 (NTP-94)
The National Telecom Policy was announced in 1994 which aimed at improving India's
competitiveness in the global market and provide a base for a rapid growth in exports. This
policy eventually facilitated the emergence of Internet services in India on the back of
established basic telephony communication network. This policy also paved way for the entry of
the private sector in telephone services.
The main objectives of the policy were:
• To ensure telecommunication is within the reach of all, that is, to ensure availability
of telephone on demand as early as possible
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4. • To achieve universal service covering all villages, that is, enable all people to access
certain basic telecom services at affordable and reasonable prices
• To ensure world-class telecom services. Remove consumer complaints, resolve
disputes and encourage public interface and provide a wide permissible range of
services to meet the demand at reasonable prices
• To ensure that India emerges as a major manufacturing base and major exporter of
telecom equipment
• To protect the defence and security interests of the nation.
The policy also announced a series of specific targets to be achieved by 1997 and further
recognized that to achieve these targets the private sector association and investment would be
required to bridge the resource gap.
Thus, to meet the telecom needs of the nation and to achieve international comparable standards,
the sector for manufacture of telecom equipment had been progressively relicensed and the sub-
sector for value-added services was opened up to private investment (July 1992) for electronic
mail, voice mail, data services, audio text services, video text services, video conferencing, radio
paging and cellular mobile telephone. The private sector participation in the sector was carried
out in a phased manner. Initially the private sector was allowed in the value added services, and
thereafter, it was allowed in the fixed telephone services. Subsequently, VSAT services were
liberalized for private sector participation to provide data services to closed user groups.
Establishment of TRAI
The entry of private players necessitated independent regulation in the sector; therefore, the
TRAI was established in 1997 to regulate telecom services, for fixation/revision of tariffs, and
also to fulfil the commitments made when India joined the World Trade Organization (WTO) in
1995. The establishment of TRAI was a positive step as it separated the regulatory function from
policy-making and operation, which continued to be under the purview of the DoT2
.
The functions allotted to the TRAI included:
a. To recommend the need and timing for introduction of new service provider
b. To protect the interest of customers of telecom services
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5. c. To settle disputes between service providers
d. To recommend the terms and conditions of license to a service provider
e. To render advice to the Central government on matters relating to the development of
telecommunication technology and any other matter applicable to the telecommunication
industry in general.
New Telecom Policy 1999 (NTP-99)
In recognition of the fact that the entry of the private sector, which was envisaged during NTP-
94, was not satisfactory and in response to the concerns of the private operators and investors
about the viability of their business due to non realization of targeted revenues the government
decided to come up with a new telecom policy. Moreover, convergence of both markets and
technologies required realignment of the industry. To achieve India’s vision of becoming an IT
superpower along with developing a world class telecom infrastructure in the country, there was
a need to develop a new telecom policy framework. Accordingly, the NTP 1999 was framed
with the following objectives and targets:
• Availability of affordable and effective communication for citizens was at the core of the
vision and goal of the new telecom policy
• Provide a balance between provision of universal service to all uncovered areas, including
rural areas, and the provision of high-level services capable of meeting the needs of the
economy
• Encourage development of telecommunication facilities in remote, hilly and tribal areas
of the nation
• To facilitate India’s journey to becoming an IT superpower by creating a modern and
efficient telecommunication infrastructure taking into account the convergence of IT,
media, telecom and consumer electronics
• Convert PCOs, wherever justified, into public telephone information centers having
multimedia capability such as ISDN services, remote database access, government and
community information systems etc.
• To bring about a competitive environment in both urban and rural areas by providing
equal opportunities and level playing field for all players
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6. • Providing a thrust to build world-class manufacturing capabilities and also strengthen
research and development efforts in the country
• Achieve efficiency and transparency in spectrum management
• Protect the defense and security interests of the country
• Enable Indian telecom companies to become global players.
In line with the above objectives, some of the specific targets of the NTP 1999 were:
• Make available, telephone on demand by 2002 and achieve a tele density of 7% by 2005
and 15% by 2010
• Encourage development of telecom in rural areas by developing a suitable tariff structure
so that it becomes more affordable and by also making rural communication mandatory
for all fixed service players and thus
o Achieve a rural tele density of 4% by 2010 and provide reliable transmission
media in all rural areas.
Players in the market
• BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5 per
cent market share. Next is Bharti Airtel at 10.9% followed by Tata and Reliance at 5%
and 4.1% respectively.
• BSNL as a company is growing and showed annual revenues of approximately $4.5
billion as of 2014. BSNL is serving more than 125 million customers across the country
and is catalyst in checking the price point for telecom services.
• Also, with the government intensifying its rural focus, only BSNL can turn into reality the
next wave of rural telecom penetration.
• BSNL is a 100% Central Government entity and employees with BSNL are entitled to get
salaries and perks as decided by Government of India and not by BSNL
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7. • However both, MTNL and BSNL are plagued by declining revenues coupled with high
costs. BSNL has massive infrastructure, manpower, systems, and 80 per cent of landlines
and 90 per cent of broadband connections in India are operated by it.
• “Vodafone is investing nearly US$ 3 billion over the next two years in India in expanding
its network infrastructure and distribution channel in the country,” as per Vittorio Colao,
CEO, Vodafone Plc.
• BlackBerry plans to set up enterprise solutions centres to educate corporate customers
about various BlackBerry Enterprise Service (BES) 10 solutions. "India is one of the
fastest growing markets in terms of smartphone and mobile data adoption,” said according
to Sunil Lalvani, Managing Director (MD), BlackBerry India.
• Tata Teleservices plans to set up nearly 4,000 wi-fi hotspots in nine cities across the
country in the next two years.
Booming sectors
• The tide has turned for the telecom sector in India, as growth and profitability has
accelerated in recent times. Tower companies are reaping benefits of a turnaround in the
sector as operators have started investing in networks to boost data penetration.
• However it is in the country’s booming mobile segment in which the major battles are
being fought. Three major private players – Bharti, Reliance and Vodafone - with a
formidable 54% share of the market between them, lead a large field of mobile operators.
State-owned enterprises –BSNL and MTNL – have also been making their presence felt
with a combined market share of 12%.
A look ahead
• According to Craig Wigginton, vice chairman and U.S. Telecommunications leader,
Deloitte & Touche LLP, the big challenge for the telecom industry in 2014 – which also
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8. presents a major growth opportunity for the sector – is that consumers are getting addicted
to connectivity and speed.
• The ongoing expansion of the mobile ecosystem, coupled with demand for high-
bandwidth applications and services such as video and gaming, is keeping pressure on the
industry to increase the availability and quality of broadband connectivity.
• What does this mean for players in the sector? Carriers will continue to pursue
technological advancements to handle demand, including offloading some mobile
bandwidth needs to Wi-Fi, which is proving an effective complement to mobile networks.
At the same time, long-term spectrum availability, spectrum efficiency, small cells and
continued backhaul improvements are likely to be a key focus to assure continued mobile
broadband momentum
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9. 1.2 Company profile
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The businesses at Bharti
Airtel have been structured into three individual strategic business units (SBU’s)
1. Mobile services
2. Broadband and telephone services (B&T)
3. Enterprise services
The Mobile services group provides GSM mobile services across India in 23 telecom circles, while
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 top corporates. All these
services are provided under the Airtel brand
Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest private integrated
telecom conglomerate, Bharti Enterprises. A consortium of giants in the telecommunication business.
In its six years of pursuit of greater customer satisfaction, Airtel has redefined the business through
marketing innovations, continuous technological up gradation of the network, introduction of new
generation value added services and the highest standard of customer care.
Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom
circles of the country. It has over 25 million satisfied customers.
Bharti Airtel limited is a telecom MNC headquartered in New Delhi India, with a presence in 20
countries across the world its the 4th largest telecom company in the world in terms of subscribers
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10. base which was over 275 million as on July 2013. Airtel is also the largest telecom company in India
and the second largest in country mobile operator by subscriber base after china mobile.
Sunil Bharti Mittal is the head of Airtel. Airtel is the largest provider of mobile telephony and second
in terms of fixed telephony and also provides broadband and DTH services. Airtel became the first
Indian company to get gold certification by CISCO.
Airtel is appreciated for forming a business strategy of outsourcing all its operations except sales,
marketing and finance ensuring low cost and high volumes. The network is outsourced to Ericsson
and Nokia Siemens whereas it is outsourced to IBM, transmission towers are maintained by bharti
infratel ltd. In India.
Cellular telephony was introduced in India during the early 1990s. At that time, there were only two
major private players, Bharti (Airtel) and Essar (Essar) and both these companies offered only
post-paid services. Initially, the cellular services market registered limited growth. Moreover, these
services were mostly restricted to the metros. Other factors such as lack of awareness among people,
lack of infrastructural facilities, low standard of living, and government regulations were also
responsible for the slow growth of cellular phone.
With the presence of a number of mobile telephony services providers including market leaders like
Airtel, Reliance, Idea Cellular, Tata Indicom, Spice Communications etc. who are providing either of
the two network technologies such as Global System for Mobile Communications (GSM) and Code
Division Multiple Access (CDMA). In cellular service there are two main competing network
technologies: Global System for Mobile Communications (GSM) and Code Division Multiple Access
(CDMA). Understanding the difference between GSM and CDMA will allow the user to choose the
preferable network technology for his needs.
Indian mobile telephony market is increasing day by day and there is more to happen with
technological up gradations occurring nearly every day and the ever-increasing demand for easier and
faster connectivity, the mobile telephony market is expected to race ahead…
The mobile telephony services providers Airtel, Vodafone (Formerly Hutch), have been competing
aggressively for their market share with MTNL, Tata Indicom, Reliance and Idea Cellular entering
into the foray, this tussle has only become tougher. With major market share in the hands of the likes
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11. of Reliance, Airtel, Vodafone (Formerly Hutch), Idea Cellular the others have been finding it difficult
to compete in the market.
The Telecom Regulatory Authority Of India (TRAI) has been playing an important role in keeping a
watch on these existing players and bringing new environment as well as policies and reforms for
these Mobile Telephony Service Providers and permitting them to provide mobile telephony services
including permission to carry its own long distance traffic within their service area without seeking an
additional license. TRAI’s mission is to create and nurture conditions for the growth of
telecommunications including broadcasting and cable services in the country in a manner and
at a pace which will enable India to play a leading role in the emerging global information
society. The service providers are free to provide, in its service area of operation, all types of mobile
services including voice and non-voice messages, data services and PCO’s. The Operators would be
required to pay a one-time entry fee. The basis for determining the entry fee and the basis for
selection of additional operators would be recommended by the TRAI. Apart from the one time entry
fee, operators would also be required to pay license fee based on a revenue share. It is proposed that
the appropriate level of entry fee and percentage of revenue share arrangement for different service
areas would be recommended by TRAI in a2
Although the cellular services market in India grew during the late 1990s (as the number of players
increased and tariffs and handset prices came down significantly) the growth was rather marginal.
This was because the cellular service providers offered only post-paid cellular services, which were
still perceived to be very costly as compared to landline communications. Following this realization,
the major cellular service providers in India, launched pre-paid cellular services in the late 1990s. The
main purpose of these services was to target customers from all sections of society (unlike post-paid
services, which were targeted only at the premium segment).
Bharti’s Vision
By 2010 Airtel will be the most admired brand in India:
• Loved by more customers
• Targeted by top talent
• Benchmarked by more businesses
11

12. INCLUDEPICTURE
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left.jpg" * MERGEFORMATINET We at Airtel always think in fresh and innovative ways
about the needs of our customers and how we want them to feel. We deliver what we promise and go
out of our way to delight the customer with a little bit more INCLUDEPICTURE
"http://bhartiairtel.in/fileadmin/templates/main/images/brand_images/inverted_commas
ryt.jpg" * MERGEFORMATINET
Bharti’s Mission
To be globally admired for telecom services that delight customers.
We will meet global standards for telecom services that delight customers through:
• Customer Service Focus
• Empowered Employees
• Cost Efficiency
• Unified Messaging Solutions
 STRENGTHS
· Cost advantage
· Current leaders in quality service
· Largest distribution network
· Ability to constantly innovate
· Highly skilled workforce
· Entrepreneurial zeal
· Airtel’s increased equity and market cap.
 WEAKNESSES
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13. · To prove credibility
· Price pressures
· Need for Government support
· Awareness
· Sales and Marketing
 OPPORTUNITIES
· To sustain passion and commitment
· Airtel’s market share increasing at other service provider expense.
· Attain higher value services
· Collaborative business needs to be explored
· Vertical repeatable solutions.
· Low penetration level in rural markets.
 THREATS
· Foreign investment
· Global trends moving from GPS to WLL.
· Lack of global parity in telecom tariff
· Other competition
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14. The Airtel Brand and its Logo
INCLUDEPICTURE "http://www.airtelworld.com/images/airtellogo_big.gif" * MERGEFORMATINET
There has been no change in the brand name Airtel was born free, a force to unleash into the market
with a relentless and unwavering determination to succeed. A spirit charged with energy creativity
and team driven to seize the day with an ambition to become the most globally admired telecom
service.
The Airtel logo is a strong, contemporary and confident symbol for a brand that is always ahead of
the rest. It is a specially drawn wordmark.
• The unique symbol is an interpretation of the 'a' in Airtel. The curved shape & the gentle
highlights on the red color make it warm & inviting, almost as if it were a living object.
• The logo represents a dynamic force of unparalleled energy that brings us and our customers
closer," it added.
• The "unboxed" having been freed of its rigid boundaries. Airtel calls the new logo youthful,
international, inclusive and dynamic – representing the journey of the first Indian brand to go
truly global. The new identity underlines Airtel’s willingness to embrace everything that is
new. The red color, which is an integral part of the brand, continues to represent the energy
14

15. and dynamism that has made Airtel the success it is today. The new curved addition to the
logo is a symbol which will help ensure instant recognition across diverse international
markets.
• The color "Red is part of our heritage. It is the color of energy & passion that expresses the
dynamism that has made Airtel the success it is today, in India, and now on the global stage.
BRAND AMBASSADORS USED BY AIRTEL
In order to take the advantage of the growing number of youth in our country, Airtel introduced
Sachin Tendulkar, Shahrukh khan, Saif ali khan, kareena Kapoor, Gautam gambhir and many others
as brand ambassadors to tap the potential.
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16. Airtel has taken the lead on many occasions. It has been the first
• Launched Cellular service in Delhi on November, 1995.
• Operator to revolutionize the concept of retailing with the inauguration of Airtel Connect
(exclusive showrooms) in 1995.
• To expand its network with the installation for second mobile switching center in April, 1997
and the first in Delhi to introduce the Intelligent Network Platform First to provide Roaming
to its subscribers by forming an association called World 1 Network.
• First to provide roaming facility in USA. Airtel has the largest automatic roaming service
"SMART ROAM"- National in 400 cities in India and "SMART ROAM" - International in
over 60 countries and 95 networks all over the world.
• It is also the first company to export its products to the USA.
Awards for the year 2012-2013
• Bharti Airtel Shared Services Team won two awards in categories of
Value Creation and Innovation & Improvement at the SSON (Shared Services & Outsourcing
Network) Excellence Awards 2012.
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17. • Bharti Airtel won four Effie awards at the Effie Awards 2012. Airtel's extremely popular 'Har
ek friend zaroori hota hai' campaign conceptualized by Taproot India, stood out as a
campaign amongst all nominations, winning three Gold Effie awards. Apart from a Gold in
the 'Telecom & Related Services' category, the campaign won a Gold each in 'Digital
Advertising' and 'Integrated Advertising'. Bharti Airtel also won one Silver Effie
award for its 'Baat sirf paison ki nahin hai' campaign for Airtel moneyin the telecom
category.
• Sanjay Kapoor was awarded the "Telecom Person of the year 2012" at the "Voice & Data
Telecom Leadership Awards 2012". The award was accorded by Honourable Minister of
New and Renewable Energy, Dr. Farooq Abdullah.
• Won the QUEST Forum India Quality Award for the Top Telecom Service Provider.
QuEST Forum is a unique collaboration of information and communication technologies
(ICT) service providers and suppliers across the world, dedicated to improving operational
and supply chain quality and performance.
• Awarded the #1 Service brand in Brand Equity's List of "Most Trusted Brands".
• Bharti Airtel was felicitated for 'Best Mobile Service Provider' and 'Innovation in
mMoney' at Aegis Graham Bell Awards held on November 1, 2012.The Aegis Graham Bell
awards honor the best innovations in the field of TIME (Telecom, Internet, Media &
Edutainment) recognizing the most exceptional contributions in the respective fields.
• Bharti Airtel was awarded the 'Brand of the Year' at the CNBC TV18's flagship initiative,
the India Business Leader Awards (IBLA) for its Har Ek Friend Zaroori Hota
Hai campaign. The IBLA Brand of The Year Award seeks to recognize a brand mass media/
communication campaign based on its key message, popularity amongst the target audience
and impact on the brand.
• Bharti Airtel won the 'Excellence in First People Initiative' award at the first, People 2012
Awards. Airtel HR's multiple initiatives in enhancing the internal customer's experience
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18. through innovation and leveraging mobile technology helped us to win the prestigious award.
• The Airtel Centre of Excellence (ACE) received the 'Excellence Award for Shared Service
Centre Operations in India' in the 2nd National Shared Services Council by All India
Management Association and Delhi Management Association in recognition of their
outstanding efforts to identify key strategic drivers and implementing them to deliver value to
all.
• Bharti Airtel won the highly prestigious Porter Prize in the 'Exploiting Trade-offs' category.
The Porter Prize Awards, named after Professor Michael Porter – the father of modern
strategic field, are the most coveted awards in the field of strategy and competitiveness. The
award recognises and honours Indian companies which have embraced the best strategic
management practices.
• Bharti Airtel Sri Lanka bagged a silver at the prestigious HRM awards. Airtel Sri Lanka was
recognized for their HR practices by HRM awards.
• Bharti Airtel won the Star News Viewer’s Choice Best Mobile Network, Best Quality
Mobile Network Service Provider, at the 6th National Telecom Awards 2012 hosted
by CMAI in May 2012.
• Bharti Airtel won 5 awards at the Telecom Operator Awards 2012, announced in March 2012
by Tele.net . Airtel bagged the 'Best National Mobile Operator', 'Best VAS Provider',
'Best Enterprise Services Provider', 'Best Ad Campaign by an Operator' and 'Most
innovative Solution' for Airtel money.
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19. Network of Airtel
• Cellular Service
Airtel Completes Its 23 Circle All India Footprint Airtel now connects India from the Indus to
the Indian Ocean and from Sabarmati to the Brahmaputra on a network of more than 10,000
base stations with cumulative investments of more than Rs. 16,000 crores.
• Internet infrastructure
Our Internet backbone involves state of the art high-end routers and switches as may deployed
on the best networks across the world to offer you reliable service of unmatched quality. Three
years back we had established satellite based gateway for internet access. This was the first
gateway by a private operator. Now we have established our fibre gateway on Network i2i,
first private submarine cable owned by us and SingTel.
• Fixed line infrastructure
Our high quality fibre-based, fixed line networks in Delhi, Haryana, Tamil Nadu, Karnataka,
Madhya Pradesh and Chahattisgarh , intensively covers the most prominent commercial and
business districts in the country. We provide the power of last mile fixed line network to bring
end-to-end voice and data solutions.
• Long distance infrastructure
Our 25,000 km advanced fibre-optic cable long distance network covers India's top 200 cities.
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20. And it powers the services of India's leading private telecom service providers - cellular, fixed
line and internet through Our Long Distance Services.
• Submarine cable
We have partnered with SingTel to create the world's largest submarine cable system-
Network i2i with 8.4 Tbps capacity. This 3200 km undersea cable structure stretches from
Chennai to Singapore and thereon to Tier-1 carriers on SingTel's capacity on 175,000 km of
cables. The huge capacity on network i2i is distributed locally in India through our 25,000 km
of advanced fibre-optic domestic long distance backbone, providing unprecedented capacity,
speed,reliability.
Organization structure
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21. Partners
The company has a strategic alliance with SingTel. The investment made by SingTel is one of the
largest investments made in the world outside Singapore, in the company.
The company’s mobile network equipment partners include Ericsson and Nokia. In the case of the
broadband and telephone services and enterprise services (carriers), equipment suppliers include
Siemens, Nortel, Corning, among others. The Company also has an information technology alliance
with IBM for its group-wide information technology requirements and with Nortel for call center
technology requirements. The call center operations for the mobile services have been outsourced to
IBM Daksh, Hinduja TMT, Teletech & Mphasis. The company's unique strategic outsourcing model
has been studied and documented by Harvard Business School as a case study which is available for
download at: www.hbsp.harvard.edu.
• Factsheet At-a-glance guide to Bharti Airtel
• Organization Structure Organisation chart depicting the Senior Management positions
• Shareholding Structure Details on the latest shareholding structure and major shareholders, as on
June 30, 2007
• Awards & Recognitions Laurels recognising Bharti's consistent efforts
Corporate Governance
Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is committed to
conduct its business in a manner, which will ensure sustainable, capital-efficient and long-term
growth thereby maximising value for its shareholders, customers, employees and society at large.
Company’s policies are in line with Corporate Governance guidelines prescribed under Listing
Agreement/s with Stock Exchanges and the Company ensures that various disclosures requirements
are complied in ‘letter and spirit’ for effective Corporate Governance.
During the financial year 2003-04, your Company was assigned highest Governance and Value
Creation (GVC) rating viz. ‘Level 1’ rating by CRISIL, which indicates that the company’s capability
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22. with respect to creating wealth for all its stakeholders is the highest, while adopting sound Corporate
Governance practices. This rating was re-affirmed by CRISIL on April 20,2006
Chapter 2
Literature Review
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23. 2.1 Literature review
The growth in demand for telecom services in India is not limited to basic telephone services. India
has witnessed rapid growth in cellular, radio paging; value added services, internet and global
communication by satellite item (GMPCS) services. The agents of change, as observed from
international perspective, have been broadly categorized into economic structure, competition policy
and technology. Economic reforms and liberalization have driven telecom sector through several
transmission channels of which these three categories are of major significance.
The effective research cannot be accomplished without critically studying what already exists in the
form of general literature and specific studies. Therefore, it is considered as an important pre-requisite
for actual planning and execution of research project. This helps to formulate hypotheses and
framework for further investigation. In this research, the survey of literature has been classified into
two parts - studies related to telecom sector and studies related to marketing strategies.
• Seth et al (2008) analyzed that there is relative importance of service quality attributes and
showed that responsiveness is the most importance dimension followed by reliability,
customer perceived network quality, assurance, convenience, empathy and tangibles. Liu
(2002) found that the choice of a cellular phone is characterized by two attitudes: attitude
towards the mobile phone brand on one hand and attitude towards the network on the other.
Samuvel (2002) observed that most of the respondents consider size, quality, price, instrument
servicing are an important factors for selecting the handset while majority of the respondents
are satisfied over the payment system, quality of services, coverage area and the process of
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24. attending the complaints regarding their mobile service provider. Nandhini (2001) examined
that attitude of the respondents using cell phones was not influenced by either education or
occupation and income.Kalpana and Chinnadurai (2006) found that advertisement play a
dominant role in influencing the customers but most of the customers are of opinion that
promotional strategies of cellular companies are more sale oriented rather than customer
oriented. Haqueet (2007) suggested that price, service quality, product quality & availability,
and promotional offer play a main role during the time to choose telecommunication service
provider.
• Muller in his a research focuses that the success of the mobile commerce can be attributed to
the personal nature of wireless devices. Adding to this are its unique features of voice and data
transmission and distinct features like localization, feasibility and convenience. The sustained
growth of the mobile commerce around the world has been more because of the transfer of
technology according to the needs of local geography.
• National Telecom Policy projected a target 75 million telephone lines by the year 2005 and
175 million telephone lines by 2010 has been set. Indian telecom sector has already achieved
100 million lines. With over 100 million telephone connections and an annual turnover of Rs.
61,000 crores, our present tele density is around 9.1%. The growth of Indian telecom network
has been over 30% consistently during last 5 years.
• According to Wellenius and Stern (2001) information is regarded today as a fundamental
factor of production, alongside capital and labor. The information economy accounted for one-
third to one-half of gross domestic product (GDP) and of employment in Organization for
Economic Cooperation and Development (OECD) countries in the 1980s and is expected to
reach 60 percent for the European Community in the year 2000. Information also accounts for
a substantial proportion of GDP in the newly industrialized economies and the modern sectors
of developing countries.
• Virat Bahri (2006) explains the viewpoint of Sam Pitroda the Chairman of Worldtel that
identifies opportunities for investments in telecommunications. He analyses that there is an
24

25. increasing role for telecom in e-governance in India. According to him, technology can be
leveraged to take India’s development to next level.
• In the study of consumer behaviour, it is possible to conclude that perception is presented as
one of personal factors determines consumer behaviour. A personal factor is the closest
environment of a consumer, including everything that makes up the individual, his/her head
and soul, which characterised his personality. Using sensory receptors and influenced by
external factors, the person receives information, accepts and adapts it, forms his personal
attitude, opinion, and motives that influence behaviour. Perception within this context is one
of the principal personal factors, conditioning the nature of the consumer and his/her
behaviour and other variables.
• Analysing classifications proposed by marketing specialists, suggests that sensation, attention,
interpretation and retention are the dominating elements of the perceptual process (Branyte et
al, 2007). Crane and Klarke (1994) posit the theory of perceptual filters, based on the idea that
the perceptual process is a set of filters, used for sorting and modifying a stimulus leading
finally to stored memory of consumers. Indeed consumer cannot perceive all the stimuli in the
phase of sensation; consumers do not react to every stimulus received in the attention phase
lest they fail to understand the proper meaning of a stimulus while interpreting it. Essentially,
they do not remember everything they have understood. The theory reflects the importance of
evaluation and recognition of the elements of the perceptual process, seeking to activate and
affect the consumer’s perception. Every phase makes the consumer feel differently as the
intensity of his/her reactions and the importance of external influence change. According to
Chernatony and McDonald, (1998), the challenge for marketers is to appreciate how all the
marketing resources supporting a brand interact to produce the benefits that consumers
perceive as being unique to a specific brand. Consumers interpret the meaning of the
marketing activity behind a brand and project values onto the brand, endowing brands with a
personality. They developed a useful framework to help understand the diverse types of brand-
added value which includes; added values from experience; added values from reference
group effect; added values from a belief that the brand is effective; and, added values from the
appearance of the brand. Consumers form impressions of a brand from their packaging and
develop brand preferences based on their attraction to the package design.
25

26. • Demographic variable is an importance determinant of customer behaviours. Study shows that
gender has significant moderating effect on perception, satisfaction- loyalty relationship. On
this note, social identity theory proposes that attitudes are moderated by demographic,
situational, environmental, and psychosocial factors (Haslam et al, 1993). According to the
social psychological theories, consumers’ evaluations are moderated, or in some cases
mediated, by personal feelings of equity in the exchange, disconfirmation between desires and
outcomes, individual preferences, social comparisons, and other complex phenomena. These
theories strongly suggest that consumers’ differences influence their attitudes. Women are
affected by sales process while men are satisfied with the impact of the product. That is, there
is significant relationship and consistent differences in the levels of perception among
demographic groups. Kotler and Keller (2006) and Karjoluoto et al (2005) report that
demographic variables have an influence on the evaluation of different attributes related to
mobile phone choice. Specifically, gender and social class will impact on the evaluations of
the attributes as men belonging to higher social class seem to be more technology savvy.
Decision making mainly follows a rational decision making process in which different
attributes are evaluated, but also has some symbolic nature as brand was regarded as important
among many study participants. Product choice also is greatly affected by occupation,
economic circumstances, spending income (level, stability and time pattern), savings and
assets (including the percentage that is liquid) debt, borrowing power, and attitude towards
spending and saving (Kotler and Keller 2006). Personality and selfconcept are important
determinants of buying behaviour. Kotler (2001) defines personality as a set of distinguishing
human psychological traits that lead to relatively consistent and enduring responses to
environmental stimuli.
• Personality are characterised by such traits as selfconfidence, dominance autonomy difference,
sociability, defensiveness and adaptability. Consumer’s personality is very useful variable in
analysing consumer brand choices. This is because brands also have personalities, and
consumers are likely to choose brands whose personality matches their own. Brand
personality is defined as the specific mix of human traits that may be attributed to a particular
brand (Kotler and Keller, 2006). Aaker (1997) identifies the following as brand personality
traits, sincerity, excitement, competence, sophistication and Ruggedness. However, people
from same subculture, social class and occupation may lead quite different lifestyle. Lifestyle
26

27. is a person’s pattern of living in the world as expressed in activities, interests and opinions.
Marketers often search for relationships between their products and lifestyle groups (Kotler
and Keller, 2006). Factors that relate to the user’s surroundings and interactions with other
people in his/her personal network of family, friends, colleagues and other important people
also have important implications on consumers purchase.
• This is based on the fact that an individual’s decisions and behaviours are not made solely by
him/her, but rather are influenced by the opinions and recommendations of other important
people. As a person is part of a social network, he/she normally interacts with others in daily
life and talks and shares with others on what he/she sees, thinks and experiences (Pedersen,
2005). That is why, for example, word of mouth is known as one of the most effective
channels through which positive and negative ideas and perceptions and spread in a social
setting. Today, for every firm a critical question for its success is that how it can maintain its
current customers and how it can make them loyal to the brands.
• Loyal customers play important role in building businesses by making different moves like
buying more, by paying premium prices and most importantly providing companies different
sets of new customers by positive word of mouth (Aydin and Ozer, 2004). In fact
telecommunication companies lose their customer quite regularly. So it’s very challenging
task for the mobile phone operators to retain existing customers as well as bringing new
customers towards their brands and creating loyalty in them. It happens in almost every
industry but especially in telecommunication services, it is said that when customers are
connected to a particular service provider or operator then their long term relationship with the
operator is of great importance for the success of the company in the competitive market.
27

28. 2.2 About the Topic
Mobile phone markets are one of the complete market atmospheres nowadays due to increased
competition and change. Thus, the growing concern requires marketers to strictly look at
Customers buying decision processes and demand focus on the factors such as Prices, Purchase
intention, Perceived intention, Perceived quality, Perceived sacrifice and Perceived value that
subsequently determine willingness to purchase between different mobile phones with an
appropriate service.
In this competitive environment, to find out the customer satisfaction, customer preferences,
expectations and perception about the Airtel life time card out of all other Cellular service
providers in the market. The underlying problem in predicting customer choice resides much
more in the fact that purchase decisions are made on the basis of many different criteria. This
problem is further confounded in service applications where customers may consider intangible
features and characteristics of the market offerings and interactions between service providers
and the consumers with an appropriate service.
In this competitive environment, to find out the customer satisfaction, customer preferences,
expectations and perception about the Airtel life time card out of all other Cellular service
providers in the market.
28

29. Theories of Perception
On a straightforward view, we directly perceive the world as it is. The way that things look, feel,
smell, taste, and sound is the way that they are. We see colours, for example, because the world is
coloured. This view of perception is called, somewhat dismissively, naive realism.
Plausibly, perception is a lot more complicated than this.
Though things may appear to be coloured to us, our experiences of colour are merely
representative of the surface properties of objects; the physical property of reflecting certain
wavelengths of light and the colour red as we experience it are two quite different things.
This has led to representative realism, which suggests that perception is not the passive process
that the naive realist suggests, that we do not simply receive information about the world through
our senses.
Rather, we are actively involved in perception, supplying much of the content of our experiences,
and must bear this in mind if we are to know what the world is really like in itself.
More extreme than either naive or representative realism is idealism. Idealists, persuaded by the
thought that we have direct access only to our experiences of the world, and not to the world
itself, have questioned whether there is anything beyond our experiences. A more recent theory
that bears some similarities to idealism has also been proposed: phenomenalism.
The underlying problem in predicting customer choice resides much more in the fact that
purchase decisions are made on the basis of many different criteria. This problem is further
confounded in service applications where customers may consider intangible features and
characteristics of the market offerings and interactions between service providers and the
consumers.
Many philosophers, such as Jerry Fodor, write that the purpose of perception is knowledge, but
evolutionary psychologists hold that its primary purpose is to guide action. For example, they
say, depth perception seems to have evolved not to help us know the distances to other objects
but rather to help us move around in space. Evolutionary psychologists say that animals from
29

30. fiddler crabs to humans use eyesight for collision avoidance, suggesting that vision is basically
for directing action, not providing knowledge.
Building and maintaining sense organs is metabolically expensive, so these organs evolve only
when they improve an organism's fitness. More than half the brain is devoted to processing
sensory information, and the brain itself consumes roughly one-fourth of one's metabolic
resources, so the senses must provide exceptional benefits to fitness. Perception accurately
mirrors the world; animals get useful, accurate information through their senses.
Scientists who study perception and sensation have long understood the human senses as
adaptations. Depth perception consists of processing over half a dozen visual cues, each of which
is based on a regularity of the physical world. Vision evolved to respond to the narrow range of
electromagnetic energy that is plentiful and that does not pass through objects. Sound waves
provide useful information about the sources of and distances to objects, with larger animals
making and hearing lower-frequency sounds and smaller animals making and hearing higher-
frequency sounds. Taste and smell respond to chemicals in the environment that were significant
for fitness in the EEA.
The sense of touch is actually many senses, including pressure, heat, cold, tickle, and pain. Pain,
while unpleasant, is adaptive. An important adaptation for senses is range shifting, by which the
organism becomes temporarily more or less sensitive to sensation. For example, one's eyes
automatically adjust to dim or bright ambient light. Sensory abilities of different organisms often
coevolve, as is the case with the hearing of echo locating bats and that of the moths that have
evolved to respond to the sounds that the bats make.
Evolutionary psychologists claim that perception demonstrates the principle of modularity, with
specialized mechanisms handling particular perception tasks. For example, people with damage
to a particular part of the brain suffer from the specific defect of not being able to recognize faces
(prospagnosia). EP suggests that this indicates a so-called face-reading module.
Customer Perception
Consumers can evaluate a product along several levels. Its basic characteristics are inherent to the
generic version of the product and are defined as the fundamental advantages it can offer to a
customer. Generic products can be made distinct by adding value through extra features, such as
quality or performance enhancements.
30

31. The final level of consumer perception involves augmented properties, which offer less tangible
benefits, such as customer assistance, maintenance services, training, or appealing payment
options. In terms of competition with other products and companies, consumers greatly value
these added benefits when making a purchasing decision, making it important for manufacturers
to understand the notion of a “total package” when marketing to their customers.
Sensations can be defined as the passive process of bringing information from the outside world
into the body and to the brain. The process is passive in the sense that we do not have to be
consciously engaging in a "sensing" process. Perception can be defined as the active process of
selecting, organizing, and interpreting the information brought to the brain by the senses.
For example, when manufacturing automotive parts, a high-performing product will provide the
customer base with basic benefits, while adding spare parts, technical assistance, and skill
training will offer enhanced properties to create a total package with increased appeal to
consumers.
Perception is the process through which a person forms an opinion about the various stimuli he
receives from his sensory organs. In marketing, perception is concerned with understanding how
the consumer views a product or service. The five senses of a person help him in this process
• To identify which cellular service they are using presently and try to convert them.
• To identify the type of connection plan, that the consumers currently have. (Postpaid,
Prepaid, or Life time card)
• To find out the communication channels most used by the consumers to know about
Airtel.
• To analyze consumer perception and expectation towards Airtel.
• To analyze the Reason and Purpose behind using Airtel.
• To find out the satisfaction level of customers towards Airtel.
Lacking and factor for dissatisfaction has been studied from the customer’s point of view.
31

32. • Getting an opportunity to convince and interact with the customers.
• Creating awareness and perception towards Airtel.
• The limit of the study is only for the Telecommunication of Airtel.
• The survey was taken from some people of Delhi city alone so the result may not be
feasiblefor other locations other than Delhi city. So, the findings only suitable for
intention and perception towards Airtel.
Today, for any organization or firm to survive in this competitive world depends on its ability to
be dynamic and be different from the competition to be unique in the industry. Customer
Satisfaction helps every organization to keep the existing customer and to build new customer.
This research is aimed at profiling the standard customer with an aim to increase the network and
improve company-customer relations. The information gathered through this research can be
used by the company to improve its services and became more customers friendly. This can
increase the goodwill of the company and its overall performance.
Perception
Our perception is an approximation of reality. Our brain attempts to make sense out of the
stimuli to which we are exposed. This works well, for example, when we “see” a friend three
hundred feet away at his or her correct height; however, our perception is sometimes “off”—for
example, certain shapes of ice cream containers look like they contain more than rectangular ones
with the same volume.
Factors in perception
Several sequential factors influence our perception.Exposure involves the extent to which we
encounter a stimulus. For example, we are exposed to numerous commercial messages while
driving on the freeway: bill boards, radio advertisements, bumper-stickers on cars, and signs and
banners placed at shopping malls that we pass. Most of this exposure is random—we don’t plan
to seek it out. However, if we are shopping for a car, we may deliberately seek out
advertisements and “tune in” when dealer advertisements come on the radio.
Exposure is not enough to significantly impact the individual—at least not based on a single trial
(certain advertisements, or commercial exposures such as the “Swoosh” logo, are based on
extensive repetition rather than much conscious attention). In order for stimuli to be consciously
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33. processed, attention is needed. Attention is actually a matter of degree—our attention may be
quite high when we read directions for getting an income tax refund, but low when commercials
come on during a television program. Note, however, that even when attention is low, it may be
instantly escalated—for example, if an advertisement for a product in which we are interested
comes on.
Interpretation involves making sense out of the stimulus. For example, when we see a red can,
we may categorize it as a CokeÒ.
Weber’s Law suggests that consumers’ ability to detect changes in stimulus intensity appear to be
strongly related to the intensity of that stimulus to begin with. That is, if you hold an object
weighing one pound in your hand, you are likely to notice it when that weight is doubled to two
pounds. However, if you are holding twenty pounds, you are unlikely to detect the addition of
one pound—a change that you easily detected when the initial weight was one pound. You may
be able to eliminate one ounce from a ten ounce container, but you cannot as easily get away with
reducing a three ounce container to two (instead, you must accomplish that gradually.
The wholly empirical approach holds that this experience is the sole determinant of perceptual
qualities. The reason percipients see an object as dark or light, the argument goes, is that in both
our own past and the past of the species it paid off to see it that particular way. Returning to the
bucket analogy, imagine that each of the three hoses pumps out water of a different color: one
pumps out black water, one pumps out gray water, and one pumps out clear water. All one sees is
the water in the bucket, which can be clear, gray, black, or any shade in between. As expected, it
is impossible to perform some calculation on the color of the water in the bucket to find out how
much water came out of each hose. Now imagine that it is your job to bet on how much water
came out of the gray hose. The output ratios of the hoses are not random, but co-vary in all kinds
of complicated ways based on the time of day, how long it takes to fill up the bucket, etc. At first
your behavior in response to the color of the bucket might not be so good, but over time this
would gradually improve as different shades and behaviors in response became associated by trial
and error. The key is that in order to improve you have to know whether or not your behaviors
worked by interacting with the world.
Several factors influence the extent to which stimuli will be noticed. One obvious issue
is relevance. Consumers, when they have a choice, are also more likely to attend
to pleasant stimuli (but when the consumer can’t escape, very unpleasant stimuli are also likely
to get attention—thus, many very irritating advertisements are remarkably effective). One of the
33

34. most important factors, however, is repetition. Consumers often do not give much attention to a
stimuli—particularly a low priority one such as an advertisement—at any one time, but if it is
seen over and over again, the cumulative impact will be greater.
Surprising stimuli are likely to get more attention—survival instinct requires us to give more
attention to something unknown that may require action. A greater contrast (difference between
the stimulus and its surroundings) as well as greater prominence (e.g., greater size, center
placement) also tend to increase likelihood of processing.
Subliminal stimuli. Back in the 1960s, it was reported that on selected evenings, movie goers in a
theater had been exposed to isolated frames with the words “Drink Coca Cola” and “Eat
Popcorn” imbedded into the movie. These frames went by so fast that people did not consciously
notice them, but it was reported that on nights with frames present, Coke and popcorn sales were
significantly higher than on days they were left off. This led Congress to ban the use of
subliminal advertising. First of all, there is a question as to whether this experiment ever took
place or whether this information was simply made up. Secondly, no one has been able to
replicate these findings. There is research to show that people will start to giggle with
embarrassment when they are briefly exposed to “dirty” words in an experimental machine.
Here, again, the exposure is so brief that the subjects are not aware of the actual words they saw,
but it is evident that something has been recognized by the embarrassment displayed.
34

35. Chapter 3
Research Methodology
35

36. Research as a scientific and systematic search for pertinent information on a specific topic. Research
Methodology is a way to systematically solve the research problem. It may be understood as a science
of studying how research is done scientifically. In it we study the various steps that are generally
adopted by a researcher to know not only the research methods or techniques but also the
methodology. We not only talk of the research methods but also consider the logic behind the
methods we use in the context of our research study and explain why we are using a particular method
or evaluated either by the researcher himself or by others.
3.1 Purpose of the study
The purpose is to check out the consumer preference towards Airtel and its services and what
are their requirements and why a problem costumer faces.
3.2 Research Objective of the study
The objective of the study is to check out the preference of consumer towards Airtel and study the
requirements of consumer and their grievances towards the company. The secondary objective of the
study.
• To study Advertising Strategy of Airtel Cellular Service: Ads are an internal part of
every company and company has to know how and when to use it.
• Its effect on existing mobile users: The cellular services market in India grew during the
late 1990 and is increasing. Airtel has to launch services in the market.
36

37. 3.3 Research methodology of the study
Research methodology is done to solve the research problems involving a study of various
steps that are adopted by the researcher in studying his problem.
Throughout the entire project the emphasis was to check the awareness level of the customers
towards the different services of Airtel and there views and perception about the same.
Finally the project was concluded by taking the feedback from the customers.
3.3.1 Research Design
The project is more of a qualitative than quantitative study. The project aims at the perception of
consumers regarding the consumers.
Explorative Research: Explorative Research includes surveys and fact-finding enquiries of different
kinds. The major purpose of description of the state of affairs it exists at present. In social science and
business research we quite often use the term expost factor research for descriptive research studies.
A Main characteristic of this method is that the researcher has no control over the variables; he can
only report what has happened or what is happening.
3.3.2 DATA COLLECTION METHOD
• THERE TWO TYPE OF METHOD OF DATA COLLECTION.
o PRIMARY DATA
o SECONDARY DATA
• DATA USED FOR THE RESEARCH WORK WAS PRIMARY
• Primary Data: The primary source of data collection is through questionnaire. The
questionnaires are distributed among 35 peoples and the there view is recorded and used in
analyzing the data Secondary sources. Primary source is a term used in a number of
37

38. disciplines to describe source material that is closest to the person, information, period, or idea
being studied. In the study of history as an academic discipline, a primary source (also called
original source or evidence) is an artifact, a document, a recording, or other source of
information that was created at the time under study. If created by a human source, then a
source with direct personal knowledge of the events being described. It serves as an original
source of information about the topic. Similar definitions are used in library science, and other
areas of scholarship. In journalism, a primary source can be a person with direct knowledge of
a situation, or a document created by such a person.Primary sources are distinguished from
secondary sources, which cite, comment on, or build upon primary sources, though the
distinction is not a sharp one. "Primary" and "secondary" are relative terms, with sources
judged primary or secondary according to specific historical contexts and what is being
studied.
• Secondary Data :
• Secondary sources include online sites (www.Google.Co.in, www.Airtel.com), newspapers
(Times of India) and templates from AIRTEL distributions centers and AIRTEL Customer
Care. In scholarship, a secondary source is a document or recording that relates or discusses
information originally presented elsewhere. Secondary source contrasts with a primary source,
which is an original source of the information being discussed; a primary source can be a
person with direct knowledge of a situation, or a document created by such a person.
Secondary sources involve generalization, analysis, synthesis, interpretation, or evaluation of
the original information. Primary and secondary are relative terms, and some sources may be
classified as primary or secondary, depending on how it is used. An even higher level, the
tertiary source, resembles a secondary source in that it contains analysis, but attempts to
provide a broad overview of a topic that is accessible to newcomers.
3.3.3 Sample designing
Target population:- The Target population under this survey are the consumers of mobile
network providers.
The target population is limited to the central Delhi.
SAMPLE SIZE : - The sample size included 100 related people in variousdifferent location.
38

39. Search process was done by interacting with number of customers during the activities
performed, which included, markets, cold calling, canopies, etc. Sample design consist of
CONVIENCE SAMPLING.
3.4 Method of data collection
Instrument of Data collection
Data Collection is an important aspect of any type of research study. Inaccurate data collection
can impact the results of a study and ultimately lead to invalid results. For the above objectives,
quantitative methods were used. Interviews were studied for the employees and structured
Questionnaires were given to them. Then the data was analyzed and interpreted in the form of
tabulation and charts.
There are two types of data collection methods used:
1. Primary data collection
2. Secondary data collection
Primary data collection method-
Primary data is the data in which the researcher collects data through various methods like
interviews, surveys, questionnaires etc., to support the secondary data.
Primary data collected in this project is using the interview and questionnaire.
Secondary data collection method-
Secondary data is data collected by someone other than the user. Common sources of secondary
data for surveys, organizational records and data collected through qualitative methodologies or
qualitative research.
Secondary data used in this project is records of Human Resource Department for the service file
of the separating staffs, various HR Journals, projects and research papers of different scholars
both national and international.
3.3.3 Drafting of a questionnaire
A questionnaire consisting of 18 questions was prepared which consisted of questions like the
working of various welfare committees of the organization and the development systems, canteen
39

40. and rest room facilities etc. So, keeping in view all the aspects of research and it consisted of
following types of questions-
• Close ended Questions- A closed-ended question is a question format that limits
respondents with a list of answer choices from which they must choose to answer the
question. Commonly these type of questions are in the form of multiple choices, either
with one answer or with check-all-that-apply, but also can be in scale format, where
respondent should decide to rate the situation in along the scale continuum, similar to
Likert questions.
Types of closed ended questions used-
1. Dichotomous Questions- Fixed-alternative question that can only be answered in
one of the two indicated ways, such as 'A' or 'B', True or False, Yes or No.
2. Multiple Choice Questions- Multiple choice is a form of assessment in which
respondents are asked to select the best possible answer (or answers) out of the
choices from a list. The multiple choice format is most frequently used
in educational testing, in market research, and in elections, when a person chooses
between multiple candidates, parties, or policies. Multiple choice testing is
particularly popular in the United States. If guessing an answer, there's usually a
25 % chance of getting it correct on a 4 answer choice question.
3.5 Limitations
The project has been successfully completed with certain inherent limitations, which are as follows:
• This Project report is based on the secondary sources for data collection and no Primary data
has been used, due to which there is lack of practical knowledge.
• Time and work constraints were also there.
40

41. • Limited information & Respondent’s unavailability.
• Time pressure and fatigue on the part of respondents and interviewer.
• Courtesy bias& the behavior of the customer while approaching them to fill the questionnaire
was unpredictable.
• Lack of customer’s cooperation was a major constraint.
• Majority of the customer were too aggressive in nature.
Chapter 4
Analysis & Interpretation
41

42. AGE GROUP
Table 4.1
42
Age Group (in years) Users
15-21 29
21-28 56
28-35 15

43. 3.2
8.2
1.4
0
1
2
3
4
5
6
7
8
9
15-21 21-28 28-35
Age Group
15-21
21-28
28-35
Chart 4.1
Interpretation:
As we can see from the above graph, the people who are in the age group of 21-28 years are the ones who
are the maximum users of mobile phones. This segment is the one which give maximum business to the
mobile operators. This segment constitutes the young executives and other office going people. They are
65% of the total people who were interviewed. The next age group are the people who are 28-35 years
old. They are 20% of the total. They are those who are at home or have small business units etc. And the
next age group is the youngest generation who are 15-21 years old. They are school and college going
students and carry mobile phones to flaunt. They are 15% of the total interviewed people.
Occupation
What is your occupation?
1. Student 2. Household 3. Executive 4.Other
Occupation Users
Student 15
Executive 55
43

44. Household 20
Other 10
Table 4.2
Chart
4.2
Interpretation
Above graph shows that 55% of the total people interviewed are working. So, these people are the ones
who are the maximum users of mobile phones. They are the young executives, managers etc. who require
mobile for their official purposes. The next category is the households 20 %, who are either housewife,
small units which operate from their homes etc. The next segment is the students. They are 15%of the
whole. And 10% of the whole is categories who are the professionals.
Customer Service at Airtel Graph
What is your satisfaction level with Airtel?
1.Fully 2.Partially 3.Distassified 4.Fully distassisfied
Table 4.3
Satisfied Users
Fully dissatisfied 10
Fully Satisfied 20
Dissatisfied 60
44
15
55
20
10
0
10
20
30
40
50
60
Others
Households
Executives
Student

45. Partially 10
Chart 4.3
Interpretation
As the above graph clearly shows that customer services at Airtel seems poor. 60% of the people are
dissatisfied with the customer services provided by Airtel. They are the ones who have the maximum
share in the market but they are lagging behind in the customer services. This could leave an impact
on the mind of the consumer
Features convinced to use Airtel
Which feature of AIRTEL convinced you to use Airtel
1.Advertisements 2.Connectivity 3.Schemes 4.Goodwill
Convincing Factor Users
Advertisement 23
Scheme 8
Connectivity 58
Goodwill 19
Table 4.4
45

46. 10
20
60
10
0
10
20
30
40
50
60
70
Satisfaction
Satisfied Fully satisfoed Dissatified Partially
Chart 4.4
Interpretation
The above data shows that the connectivity of the Airtel is its backbone and it is the
main reason that the consumers are using it and the network is still is in usage and
goodwill of the company is at risk and falling at a huge rate.
Usage of Airtel
Which service do you use of Airtel
• Mobile service
• Internet
• DTH
• Other
Usage Users
DTH 10
Internet 25
Mobile Service 64
Others 8
Table 4.5
46

47. 64
25
10 8
0
10
20
30
40
50
60
70
Mobile service Internet DTH Others
Sales
Mobile service Internet DTH Others
Chart 4.5
Interpretation
It can be seen from the data represented above that most the customers use Airtel because of its
Mobile service’s rather than any other requirement as it provides them the best service in Airtel in the
service Department.
Monthly expense graph
How much is your monthly expenses?
• 500 – 1000
• 1000 – 2000
• 2000 & above
Table 4.6
Expenses Users
500-1000 24
1000-2000 64
2000 & Above 12
47

48. 24
64
120
50
100
500-1000 1000-2000 2000 & Above
Expenses
500-1000
1000-2000
2000 & Above
Chart 4.6
Interpretation
People on an average spend RS 500 per month as their mobile phone expense. 64% people spend this
amount. 24% people spend RS 300 per month as their monthly mobile expense. And the remaining
12% had an expense more than RS 1000, they could the ones having sim connections or having cash
cards and having a lot of business calls on their mobiles.
Influencer
What makes Airtel different from others?
1.Connectivity 2.Tariff plans
3.New schemes
4.Other
Factors Users
Connectivity 72
New schemes 14
Tariff plans 32
Other 12
Table 4.7
48

49. 8.2
3.2
1.4 1.2
0
1
2
3
4
5
6
7
8
9
connectivity Tariff Scheme others
Influence
connectivity Tariff Scheme others
Chart 4.7
Interpretation
The above figure shows that connectivity is the favored influencer of Airtel and it persuades
consumer to use the network and later on tariff and schemes play there role in the company.
Celebrity Factor
Which celebrity you like very much in AIRTEL
• Sachin Tendulkar
• Shahrukh khan
• Kareena Kapoor
• A.R. Rehman
Celebrities Users
Shahrukh Khan 36
Kareena Kapoor 2
A.R. Rehman 19
Sachin Tendulkar 28
Table 4.8
49

50. 28
36
2
19
0
5
10
15
20
25
30
35
40
Celebrity Factor
Sachin Shahrukh Kareena A. Rehman
Chart 4.8
Interpretation
The main celebrity that is responsible for the success of the Network is Shahrukh khan then Sachin
Tendulkar and behind him is A.R. Rehman and Kareena Kapoor comes in the last.These celebrity did
their best to promote it but the network was hugely favored by the above data.
Users
What type of Airtel service you use?
• Postpaid
• Prepaid
Card Users
Prepaid 46
Postpaid 54
Table 4.9
50

51. Chart 4.9
Interpretation
The above data shows that earlier prepaid was the favorite of consumers but with the flow of time the
time this preference has shifted towards the postpaid side and now they are in demand as earlier only
network was used for call’s only and now it provides number of facilities like internet etc.
Service Provider Graph
Which was your first choice of cellular service when you want to use mobile phone?
1.AIRTEL 2.VODAFONE 3.IDEA 4.RELIANCE 5.OTHERS
Networks Users
Vodafone 25
Idea 5
Airtel 35
Reliance 15
Others 20
Table 4.10
51

52. Chart 4.10
Interpretation
The above graph shows a slice of 50%. These are the total no. of people who are using Airtel. It
seems that people are more aware of Airtel than any other brand. The next popular brand is Hutch.
305 of the people interviewed had Hutch connections. The next popular brand was Idea. 15% people
had Idea connections. As it came very late in the market when Airtel had established it self very well.
AIRTEL is #1 in India
Opinion Users
Yes 87
No 13
Table 4.11
52

53. Chart 4.11
Interpretation
The above graph shows the result of the survey that how many people think Airtel is best in its
services. According to the survey done, 95% of the people think that Airtel is the best which
provides better telecommunication services and only 5% of the people thinks vice-
versa.Purple color shows people who say ‘yes’ to the survey that Airtel is No. 1 and maroon
color shows who do not agree.
Type of Card Graph
Cards Users
Sim Card 15
Cash cards 85
Table 4.12
53

54. Chart 4.12
Interpretation
Cash cards seemed quite popular among the people interviewed. 85% of the total mobile users were
having cash card connections. This means that the cash cards should be easily and readily available in
the local markets. Airtel should make sure that Magic is available in each and every nook and corner
of the market. 15% of the people were having sim connections which is the regular bill.
Advertisement
Type of advertisement you most like in AIRTEL
• Audio Visual
• Print
• Audio
Advertisement Users
Audio 20
Audio Visual 58
54

55. Print 22
Table 4.13
8.2
3.2
1.4
0
1
2
3
4
5
6
7
8
9
Audio Visual Print Audio
Advertisement
Audio Visual Print Audio
Chart 4.13
Interpretation
It can be seen from the above data that audio visual advertisements are still the best mode of reaching
the consumers and influence them.
55

56. Chapter 5
Findings & Suggestions
5.1 Findings
• Airtel is a very successful brand in India as it covers a wide network and is still one of the best
still in network coverage and stands one of the best network in the world and has covers major
of the population coverage.
56

57. • There is still scope of improvement as some of the rural and remote areas are not till covered
by any service provider and the company is shifting its focus towards them as well to reach a
wide area and generate loyal customers.
• Business houses are the major users of Airtel as it is better than all other network’s in
broadband coverage and plans are better than any.
• Airtel focuses on its customer’s satisfaction but it can provide some more relaxation to its
users and provide some more incentives for its dealers so that they can be more loyal towards
the company and market it better.
• Company is undertaking extensive promotional activities like advertisements released in
different Medias to create brand awareness in target pulling areas like campuses etc. Free
samples should be distributed among the prospects like free recharge or sims & sales
promotion tools like gifts, contests and coupons must be given to retailers as well as customers
and prospects. Catalogues should be distributed among customers.
• The company is focusing more on the Youth & the untapped areas of the country
like rural areas to hold a strong position in the country and prosper further.
• Company has shifted to its concern to one of the most influential target market i.e. YOUTH as
population concern more on the youth as they consist majority of the population in the country
and are most spenders in today’s age.
• Airtel provides value added packs for its heavy users as to retain them as postpaid connections
are on the rise as compared to prepaid.
57

58. • It is used mainly for its mobile network coverage across the globe as it covers a huge area so
its connectivity is high and the goodwill factor comes into play.
5. 2 SUGGESTIONS
• Following are the few suggestions to AIRTEL for improving the market share and image of
the products concerned.
• Modification must be brought about in AIRTEL, in terms of quality. Its demand should be
increased and provides its consumer with value added services as to retain them.
58

59. • In today’s age the brand must focus on other areas to market it like Malls, theatre and crowed
area to get attention and market it and gather audience interest.
• Most of the respondents are satisfies with the services provided by Airtel to mobile user steps
to be taken to make customers more satisfied but many are still not aware of phone plus
facility and steps are to be taken to popularize it.
• Many of the respondents are not satisfied with the features provided to prepaid users as
compared to Landline users.
59

60. Chapter 6
Conclusion
Airtel is a very successful brand in India & providing customer satisfaction is to be there main
motive.Provides Internet access on the move as people are more dependent on it in their daily lives
like wide network and good 3G services.
Airtel possesses congestion free & wide network, unique value added & customer services.
Providing customer satisfaction is the most crucial step of the company as they are to be satisfied and
provides Internet access on the move such as Wide network and good 3G services as they are
important and technology advanced stuff required by almost everybody in today’s environment,
60

61. Airtel is a home brand and a very successful brand in India and overseas and one of the most
successful brands still to date. It possesses congestion free & wide network, unique value added &
customer services to cover one of the widest areas.
From the details it can be concluded that 70% of Airtel users preferred to remain with Airtel. Also
good number of users who were willing to switch from their respective subscribers showed interest in
Airtel. Hence, these statistics imply a bright future for the company. Also the company is used mainly
by executives who want wide coverage for their operations but the problem of customer satisfaction
still persists with the company and cause of its lacking new customers.
Connectivity is the backbone of the company and it is still the reason why consumers use it and the
most users of the company fall in the youth category and are now using postpaid services as they are
aware of the services provided as the youth is the main target of major of companies as the country
mainly comprises of them.
ANNEXURE
 QUESTIONNAIRE
 NAME:
 ADDRESS:
 OCCUPATION:
61

62. 1. Do you think that Airtel tariff plans are better than others?
• Yes
• No
2. Which service do you use of Airtel?
• Mobile service
• Internet
• DTH
• Other
3. Which was your first choice of cellular service when you want to use mobile phone?
• AIRTEL
• HUTCH
• IDEA
• RELIANCE
• TATA INDICOM
• OTHERS
4. How did you know about AIRTEL cellular service?
• Friends
• Advertisements
• Relatives
• Other Sources
5. Which feature of AIRTEL convinced you to use AIRTEL?
• Advertisements
• Connectivity
• Schemes
• Goodwill
62

63. 6. Which feature of AIRTEL is better than your previous cellular service?
• Advertisements
• Connectivity
• Schemes
7. What is your age?
• 15-21 years
• 21-28 years
• 28-35 years
8. Which type of advertisement you most like in AIRTEL?
• Audio Visual
• Print
• Audio
9. Which celebrity you like very much in AIRTEL?
• Sachin Tendulkar
• Shahrukh khan
• Kareena kapoor
• A.R. Rehman
10. What is your occupation?
• Student
• Household
• Professional
• Other
11. Are you an Airtel customer?
• Yes
• No
63

64. 12. What type of Airtel service you use?
• Postpaid
• Prepaid
13. How did you come to know about Airtel?
• Friend
• Dealer
• Advertisement
• Other
14. What makes Airtel different from others?
• Connectivity
• Tariff plans
• New schemes
• Other
15. What is your satisfaction level with Airtel?
• Fully
• Partially
• Distassified
• Fully distassisfied
16. How much is your monthly expenses?
• 500 - 1000
• 1000 – 2000
• 2000 & above
64

65. Bibliography
In this project report, while finalizing and for analyzing quality problem in details the following
Books, Magazines/Journals and Web Sites have been referred. All the material detailed below
provides effective help and a guiding layout while designing this text report.
65

66. • Books :
• Kothari. C.R (2004): Research Methodology Methods & Techniques , New Age‟
International Publishers, New Delhi, 2nd Edition.
• Richard I. Levin, David S. Rubin (2004): „Statistics for Management , Prentice Hall of‟
India Private Limited, New Delhi, 7th Edition.
• Principles of Marketing –Philip Kotler & Kevin keller edition 12
• Market Research – D.D. Sharma
• Research Methodology – C.R. Kothari
 Websites:
• www.Airtelworld.com
• www.google.com
• www.info-matic.com
• http://en.wikipedia.org/wiki/Bharti_Airtel
• http://www.slideshare.net/muskan19/airtel-brand-analysis
• http://www.airtel.in/
• http://www.slideshare.net/dpdas3/bharti-airtel
• http://www.authorstream.com
• http://www.moneycontrol.com/competition/bhartiairtel/comparison/BA08
• http://wirelesstelecom.wordpress.com/2013/11/11/swot-analysis-of-indias-largest-
mobile-telecom-operator-bharti-airtel/
66

67. • http://www.ukessays.com/essays/marketing/history-about-the-generic-strategies-
marketing-essay.php
• http://www.themediaant.com/airteladvertising
• http://mythbhagat.blogspot.in/2009/04/successful-sales-and-distribution.html
67

68. 68