Professional Documents
Culture Documents
PROJECT REPORT
ON
SUBMITTED BY:
RAKESH KUMAR
2
CONTENTS
ACKNOWLEDGEMENT -- 4
PREFACE -- 5
EXECUTIVE SUMMARY -- 7
RESEARCH METHODOLOGY -- 11
INTRODUCTION -- 15
COMPANY PROFILE -- 30
SUGGESTIONS -- 68
SWOT ANALYSIS -- 70
RECOMMENDATION -- 74
LIMITATIONS -- 77
O CONCLUSION --
80
BIBLIOGRAPHY -- 82
QUESTIONNAIRE -- 84
3
4
Acknowledg
ement
5
ACKNOWLEDGEMENT
6
(RAKESH KUMAR)
Prefac
e
7
PREFACE
Airtel.
8
Executiv
e
Summar
y
9
EXECUTIVE SUMMARY
its profit but also needs to satisfy its customers and should try to
10
Objectiv
e of the
Study
11
OBJECTIVE OF THE STUDY
communications
12
Researc
h
Methodo
logy
13
RESEARCH METHODOLOGY
subject. As the prime objective of the project is to compare Airtel with the
existing competitors in the market and the impact of WLL on Airtel, the
research methodology adopted is basically based on primary data via which the
most recent and accurate piece of first hand information could be collected.
Secondary data has been used to support primary data wherever needed.
Questionnaire Method
Observation Method
The main tool used was, the questionnaire method. Further direct interview
method has been continuous with the questionnaire method, as one continuously
14
# To conduct this research the target population was the mobile users, Who are
# Some dealers were also interviewed to know their prospective. Interviews with
# Finally the collected data and information was analyzed and compiled to arrive at
Used to obtain information on, Bharti’s history, current issues, policies, procedures
# Internet
# Magazines
# Newspapers
# Journals
# Bharti Circulars
15
# Bharti News Letters
16
Introduct
ion
17
INTRODUCTION
In the early 1990s, the Indian government adopted a new economic policy aimed
at improving India's competitiveness in the global markets and the rapid growth of
In India, the telecom service areas are divided into four metros (New Delhi,
Mumbai, Chennai and Kolkatta) and 20 circles, which roughly correspond to the
states in India. The circles are further classified under "A," "B" and "C," with the "A"
circle being the most attractive and "C" being the least attractive. The regulatory
two cellular licenses for each metro and circle. Thirty-four licenses for GSM900
cellular services were auctioned to 22 firms in 1995. The first cellular service was
provided by, Modi Telstra in Kolkatta in August 1995. For the auction, it was
stipulated that no firm can win in more than one metro, three circles or both. The
circles of Jammu and Kashmir and Andaman and Nicobar had no bidders, while
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in
the Lok Sabha, and the president officially announced the TRAI ordinance on 25
functions from policy formulation, licensing and telecom operations. Prior to the
creation of TRAI, these functions were the sole responsibility of the DOT.
High license fees and excessive bids for the cellular licenses put tremendous
18
financial burden on the operators, diverting funds away from network development
and enhancements. As a result, by 1999 many operators failed to pay their license
fees and were in danger of having their licenses withdrawn. In March 1999, a new
telecom policy was put in place (New Telecom Policy [NTP] 1999). Under this new
scheme whereby between 8-12 percent of cellular revenue were to be paid to the
government.
THEIR RESOLUTION
Indian Cellular market immediately after the first round of licensing in 1994-96 was
beset by several problems for 3 - 4 years till the New Telecom Policy of 1999 was
19
ROADBLOCKS
CURRENT POSITION
Migration to revenue sharing mode in 1999 mitigates high initial fund requirements
Businesses that have since been adequately funded growing at over 60% per
acquisitions / mergers, with 4/5 major groups emerging in the last one/two years.
Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being
through income, intra circle long distance, spectrum availability and allocation and
BHARTI (Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties
with changes in methodology / revenue sharing, intra circle long distance allowed,
20
operators.
Large up front cash requirements from promoters due to heavy license fee
Large up front cash requirements for license fee payments mitigated with
routine allowing ease of entry / exit - paves the way for full control of businesses by
foreign companies.
Roadblocks spelt out earlier resulted in low market / subscriber growth, but with
21
1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY
Despite the recent gains of the cellular industry, not everything is rosy. The cellular
penetration rate is still very low at 0.8 percent in a nation of over one billion people.
In recent years, many foreign companies had pulled out from their cellular joint
1999 alone, Swisscom pulled out from Sterling Cellular, Telstra from Modi Telstra
and both the Telecom Organization of Thailand and Jasmine International from JT
Mobile. In 2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and
both Shinawatra of Thailand and Bezeq exited from Fascel. In June 2001, British
Telecom exited from Bharti Cellular. Bell South International has also indicated its
The string of sell-outs notwithstanding, there has been a merger and acquisition
wave sweeping across the Indian cellular industry in recent years. Hong Kong-
major stakes in Sterling Cellular (December 1999), Usha Martin Telecom (mid-
2000) and Fascel (September 2000). Through a partnership with local company,
Usha Martin Telecom, thus circumventing the 49 percent limit on foreign ownership
22
in Indian cellular operators. Hutchison Whampoa is also the controlling
another major cellular player — acquired control of JT Telecom, which was later
Bharti Mobinet (August 2000). Bharti also acquired the Punjab license of Essar
and started operations, giving competition to the lone operator there, Spice
Communications. Going forward, Bharti is likely to merge all its cellular companies
Five companies together bid Rs16.3 billion to bag the licenses for the fourth
operator slots in four metros and 13 circles. Bharti emerged as the No. 1 bidder
with eight new licenses, followed by Escotel with four, Hutchison with three, and
Reliance and Idea cellular with one each. Bharti and Hutchison have already
commenced operations in all the circles while Idea is set to launch in Delhi. Escotel
BHARTI, the third cellular operator for Delhi and Mumbai, started services in
March 2001. BSNL, as the third nationwide cellular operator, launched services in
Kolkatta and Bihar in January 2002. This was followed by Tamil Nadu in July 2002.
A nationwide launch was scheduled for 2 October 2002. However, this has been
postponed until after mid October. Once BSNL rolls out its service, most telecom
circles will have four cellular operators. There will be tremendous competitive
pressure, which will result in lower tariffs. Future rate cuts are expected, which will
drive demand, together with falling handset prices and the introduction of prepaid
services.
In the midst of declining interest in technology stocks, Bharti came out with its
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long-awaited initial public offering (IPO) in January 2002. Leveraging on the
success of its cellular service, the company got a very good response from the
primary market. The total size of the IPO was 185 million shares at a floor price of
Rs10. The issue was oversubscribed by more than 2.5 times, netting Rs8.3 billion.
This will be used to fuel its investment in long-distance, basic and cellular services.
As of October 2002, only BPL Mobile has launched commercial general packet
While both Bharti and Idea have GPRS-enabled networks, there is caution on their
part to launch the service. With hardly any applications, the success of GPRS
remains a question.
Deviating from competing on the price platform, cellular operators are actively
promoting their brand and service portfolio through high-visibility advertising and
promotional campaigns. Cellular operators like Bharti, Orange and BPL Mobile
have been advertising aggressively on transport hoardings and kiosks. Public like
the city rail system and cabs are used widely to carry the message of mobility.
Customer-focused activities are gaining traction among cellular operators with the
offers "Orange Holidays" and "Orange Monsoon Offers" at very attractive rates and
added benefits like discounts on airfare, food and beverages, among others.
Others offer special privileges in retail outlets, cinemas and music shops.
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All along, customer acquisition and the top line have been the focus. Few
However, as operators realize that offering basic voice and Short Message Service
(SMS) will get them the numbers but not the margins, some are now seriously
Cost-centered solutions like closed user group (CUG), value-adds like unified
A variety of mobile applications are finding takers among the enterprise segment.
that they can improve the efficiency of trucks or buses by tracking movement and
installing a global system for mobile communications inside a vehicle to help trace
prevent misuse. Calls can be barred, limiting access to select numbers and
diverting calls to one single number. Broadcasting services are also quite popular,
especially among fast food centers that have a central number. Group SMS is
quite popular, especially among enterprises both in the service as well fast as the
-moving consumer goods (FMCG) segment that have a large field force and need
of goods from warehouse to the retail outlet. Banks too find bulk SMS service very
25
1.3 FUTURE TRENDS AND DEVELOPMENT
better.
• The entry of state-run operators like BSNL and BHARTI means that prices
formed.
• The bigger the service provider's national presence, the better it is for
advantageous.
strategies.
The operations of this sector are determined as under the Indian Telegraph Act of
26
1885. A document buried in the sands of time. The next major policy document,
which was produced, was the National Telecom Policy of 1994, a consequence of
Year Event
First telephones in India
1851
basic services
metros
January 1995 Tenders for 2nd operator in basic services apart from
The National Telecom Policy of 1994 document, which laid out broad policy
guidelines rather than a series of action points. Like other policies, it sought to
achieve the impossible in finite time like improve quality of service and its
availability, wide coverage (a phone in every village), at reasonable rates, etc. The
27
targets in quantifiable terms were installation of 9.5mn additional lines, telephone
on demand by 1997, and a PCO pop of 500. The Eighth Plan had also allowed
private operators in value added services. To facilitate licensing, the nation was
divided into 20 circles (akin to a state) for basic and 21 circles for cellular
every circle will have one private operator apart from DoT/ BHARTI for
basic and two operators for cellular. DoT/ BHARTI have the option to
Government did not achieve most of its stated targets. The basic theme, which
was broadening the reach of telephony in India, has not been met. Even
liberalization policies were not implemented properly. The regulator TRAI was set
up after delays and confusion and even after its creation, DoT continued to fight
with it in courts. It was also affected by the resource crunch, and financing options
like BOT, BOOT and BOLT was not used at all. The major policy direction it
showed was to allow private sector entry in both basic and value added services.
The intention, though noble failed to achieve its goals because of improper
implementation, the economic costs are still borne by the end user.
The telecom sector has witnessed some fundamental structural and institutional
thrown open to private sector participation in 1992. Basic services were opened to
private participation in 1994 by dividing the country into 21 telecom Circles and
28
allowing one private operator per Circle to compete with DoT. An independent
telecom regulatory Authority of India was set up in 1997. A new Policy for Internet
service providers to enter the sector ending the earlier monopoly of VSNL.
29
Compan
y Profile
30
COMPANY PROFILE
Vision
"As we spread wings to expand our capabilities and explore new horizons,
the fundamental focus remains unchanged: seek out the best technology in
the world and put it at the service of our ultimate user: our customer."
These are the premise on which Bharti Enterprises has based its entire plan
of action.
Bharti Enterprises has been at the forefront of technology and has revolutionized
Established in 1985, Bharti has been a pioneering force in the telecom sector. With
many firsts and innovations to its credit, ranging from being the first mobile service
in Delhi, first private basic telephone service provider in the country, first Indian
and first private sector service provider to launch National Long Distance Services
in India. Bharti had approximately 3.21 million total customers – nearly 2.88 million
Madhya Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and
Uttar Pradesh (West) circle. In addition, it also has a fixed-line operations in the
states of Madhya Pradesh and Chattisgarh, Haryana, Delhi, Karnataka and Tamil
31
Nadu and nationwide broadband and long distance networks.
Bharti has recently launched national long distance services by offering data
transmission services and voice transmission services for calls originating and
instruments, it is also the first telecom company to export its products to the USA.
“to capitalise on the growth opportunities that the Company believes are available
The Company has developed the following strategies to achieve its strategic
objective:
geographical coverage;
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• Position itself to tap data transmission opportunities and offer advanced
customer satisfaction;
efficiencies.
Businesses
• Mobile services
• Fixed-line
Competitive Strengths
Bharti Tele-Ventures believes that the following elements will contribute to the
33
Company's success as an integrated telecommunication services provider in India
and will provide the Company with a solid foundation to execute its business
strategy:
opportunities;
• The strong brand name recognition and a reputation for offering high quality
• Quality management team with vision and proven execution skills; and
Brand Architecture:
34
corporate identity as well as defining its goal to become a national
Airtel - The flagship brand for cellular operations all across the country.
India One - The brand for national long distance (NLD) telephony
Though the costs of creating new brands are heavy but the group wants to
and profiles”.
35
Brand Strategy:
To understand the brand strategy, let’s first look at the brand building exercise
When the brand was launched seven years ago, cellular telephony wasn’t a mass
market by any means. For the average consumer, owning a cellular phone was
expensive as tariff rates (at Rs 8 a minute) as well as instrument prices were steep
Bharti could have addressed the customer by rationally explaining to him the
economic advantage of using a mobile phone. But Sachdev says that such a
strategy would not have worked for the simple reason that the value from using the
it gave to the customer as the main selling tack. The idea was to become a badge
So the Airtel “leadership series” campaign was launched showing successful men
with their laptops and in their deluxe cars using the mobile phone. In simple terms,
it meant Airtel was positioned as an aspirational brand that was meant for leaders,
Did it work? Repeated surveys following the launch showed that there were three
core benefits that were clearly associated with the brand — leadership, dynamism
and performance.
36
These were valuable qualities, but they only took Airtel far enough to establish its
presence in the market. As tariffs started dropping, it became necessary for Airtel
that despite all these good things, there was no emotional dimension to the brand
Sachdev and his team realized that in a business in which customer relationships
were the core this could be a major weakness. The reason? With tariffs identical
to competitor Essar and roughly the same level of service and schemes, it had
now become important for Bharti to “humanize” Airtel and use that relationship as
a major differentiation.
The brand had become something like Lufthansa — cold and efficient. What they
needed was to become Singapore Airlines, efficient but also human. A change in
tack was important because this was a time when the cellular market was
changing.
The leadership series was okay when you were wooing the crème de la crème of
society. Once you reached them you had to expand the market so there was need
By that time, Bharti was already the leading cellular subscriber in Delhi with a base
of 3.77 lakh (it now has 1.2 million customers). And with tariffs becoming more
affordable — as cell companies started cutting prices — it was time to expand the
market.
How could Bharti leverage this leadership position down the value chain? Surveys
showed that the concept of leadership in the customer’s minds was also changing.
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Leadership did not mean directing subordinates to execute orders but to work
Also, a survey showed that 50 per cent of the new customers choose a mobile
colleagues. Thus, existing customers were an important tool for market expansion
That is precisely what the brand tried to achieve through its new positioning under
the Airtel “Touch Tomorrow” brand campaign. This set of campaigns portrayed
mobile users surrounded by caring family members. Says Sachdev: “The new
campaign and positioning was designed to highlight the relationship angle and
As it looks to expand its cellular services nationwide —to eight new circles apart
from the seven in which it already operates — Bharti is now realizing that there are
new compulsions to rework the Airtel brand, and a new exercise is being launched
to this effect. Right now, the company is unwilling to discuss the new positioning in
detail. But broadly, the focus is on positioning Airtel as a power brand with
country.
If Airtel is becoming more humane and more sensitive as a brand, Bharti has also
understood that one common brand for all cellular operations might not always
To bring in new customers, the company decided that it needed to segment the
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market. One such experiment, launched last year, is Youtopia, a brand aimed at
the youth in the 14 to 19 age bracket and for those who are “young at heart”. With
its earlier positioning, Airtel was perceived as a brand for the well-heeled older
customer; there was nothing for younger people. With Youtopia, Airtel hoped to
reverse that.
In order to deliver the concept, Airtel offered rock bottom tariff rates (25 paise for
scheme — like a special portal for young people to buy things or bid for goods.
The company is now looking at offering other services at affordable prices to this
segment which include music downloads on the mobile and bundling SMS rates
segmentation through the Tango brand name. The brand was created to offer
Application Protocol).
The idea was to bring Internet and mobile in perfect harmony. “The name was
chosen from the popular movie title It Takes Two To Tango: basically, you need
the two services to tango to offer customers a new choice”, says Sachdev.
This, however, had less to do with the branding exercise as with inefficiency of
service (accusingly slow download speeds) and the limited utility of WAP services.
Subsequently, the ads were withdrawn, but the company re-iterated that the
39
branding exercise could be revived because Tango will be the brand to offer GPRS
The Magic:
Perhaps the more ambitious experiment has been with Magic — the pre-paid card.
The idea was to make the brand affordable, accessible and, most importantly,
PHASE I –
Magic was aimed at bringing in infrequent users of a mobile phone into the market
and assure him that he would have to pay only if he made a call. Such a customer
used the phone sparingly — mostly for emergencies — and was not willing to pick
up a normal mobile connection with its relatively high rentals (pre-paid cards do not
• One, the product was made available at prices ranging from Rs 300 to Rs
• Two, the product was made accessible and distributed through small stores,
telephone booths and even kirana shops so that the offering was well within
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arm’s reach.
This apart, the company roped in Karisma Kapoor and Shah Rukh Khan for a
major ad campaign all across Delhi, a ruse that saw the number of subscribers go
up from 5.47 lakh to 12 lakh today, overtaking Essar’s branded pre-paid card
Speed, which was launched much ahead of Magic. The company is now re-
Earlier, the branding strategy was aimed at roping in only interested customers —
that is, customers who were already inclined to opt for mobile services. But now,
with basic service providers having been allowed limited mobility at far cheaper
rates, mobile service providers could find themselves under threat again.
While the exact strategy is under wraps, insiders say the new branding
strategy would be aimed at offering them value which they had not perceived
PHASE II -
Bharti used Airtel Magic to build a strong value proposition and accelerate market
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• A combination of the film genre exposed through the TV medium designed to
• Youth based - romance driven strategy platform makes the value proposition of
• All elements - user imagery, context, tone & language created to connect the
category to the lives of the SEC B & SEC C segment – the middle class non-
mobile user.
• Airtel Magic positions itself on the platform of being excellent for emergency
Kareena Kapoor with Airtel Magic, India’s leading pre-paid mobile card.
Airtel today unveiled its strategy for market expansion with the launch of it’s new
Airtel Magic pre-paid card brand campaign – ‘Magic hai to Mumkin hai’. The
strategy is targeted at the non-user segment defined as young adults, 15-30 years
of age; in the Sec B & C segment is aimed at accelerating market expansion. The
value proposition is centered around a person’s desire to make all his / her
dreams, ambitions & aspirations instantly possible. The new campaign for Airtel
The brand is positioned to be relevant to the mass-market who want to make all
their dreams, hopes & desires come alive… instantly. (At just Rs.300/- per month
Airtel Magic is so easy to buy.) Improving productivity, letting you befriend the
world and opening up new horizons. It gives you the freedom to control your life in
42
a way never possible before. Indeed, anything that you think is possible is
possible with Airtel Magic. The new brand slogan ‘Magic hai to Mumkin hai’ has
This strategy is designed to help us talk to this segment directly in the tone,
manner & language of the masses. The “Mumkin hai” value proposition will help
us expand the market and gain a higher percentage of market share in the
process.
The brand ambassadors Sharukh Khan and Kareena Kapoor embody this ‘can do’
or “Mumkin Hai” spirit (infact that is the reason they were selected as brand
ambassadors). Sharukh rose from a TV actor to become India’s top film star and
national heartthrob. Kareena’s success is due to her ‘attitude’, talent, hard work
and the sheer ability to make a mark in such a short time. Both these stars have
The genre of this new strategy & campaign is Hindi cinema led. This genre
connects millions across India. The spirit of romance, dancing… the Indian
one.
The new TV campaign of Airtel Magic crafted in the Hindi film idiom, magnifies the
romance. Where Shahrukh Khan, sets his eyes on Kareena Kapoor and wins her
love with the help of Airtel Magic. (Poignantly conveying that special feeling we all
get when a dream is made possible and a victory of the heart is won).
The strategy & new brand campaign is targeted at the large untapped base of
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intending mobile customers from Sec A, B & C. The estimated addressable
market of such customers in the next two years is around 25 million in Airtel’s 16
states. The new strategy aims at correcting the perception that the mobile
The new strategy, brand positioning & brand slogan is an outcome of an extensive
PHASE III -
Bharti used Airtel Magic to build a strong value proposition and accelerate market
• First time ever in India - any pre-paid card brand gives such freedom to
• Youth based - romance driven strategy platform makes the value proposition of
• Shahrukh Khan makes ‘everything in life possible’ Airtel today unveiled its
strategy for market expansion with the launch of it’s new Airtel Magic pre-paid
card brand campaign – ‘Magic hai to Mumkin hai’. . The value proposition is
centered around a person’s desire to make all his / her dreams, ambitions &
44
aspirations instantly possible. The new campaign for Airtel Magic is all about
The brand is positioned to be relevant to the mass-market who want to make all
their dreams, hopes & desires come alive… instantly .At a amount of your choice
you can recharge your account with available validity time .Improving productivity,
letting you befriend the world and opening up new horizons. It gives you the
freedom to control your life in a way never possible before. Indeed, anything that
you think is possible is possible with Airtel Magic. The new brand slogan ‘Aisi
azadi aur kahan has been specially created to capture this effectively.
Tax (Days
SERVICE TAX
Other Brand Building Initiatives:-
The main idea is to stay ahead of competition for at least six months. Working on
the above game plan Bharti is constantly coming up with newer product offerings
46
• To make the service simpler for customers using roaming facilities, Airtel
has devised common numbers for subscribers across the country for
services like customer care, food services and cinema amongst others.
• It will also launch a unified billing system across circles so, customers
moving from one place to another do not have to close and then again open
• Bharti expects that most of its new customers (one estimate is that it would
be 60 to 70 per cent of the total new subscriber base) would come from the
pre-paid card segment. So, they must be given value-added products and
• Bharti, for the first time for a cellular operator, has decided to offer roaming
services even to its pre-paid customers, but the facility would be limited to
the region in which they buy the card. To ensure that customers don’t
from 10 to 15 per cent of the customer base every month), the company is
also working on a loyalty program. This will offer subscribers tangible cash
• The loyalty program will not be only for a ‘badge value’, it will provide real
47
• Another key area which Bharti is concentrating its attention upon is a new
who is visiting the city will be routed directly to his mobile instead of
pictures and e-mail it to friends or store it in the phone. The cost per picture
is between Rs 5 to Rs 7.
service much easier than it is today. A key area is to increase the number of
activation centers. Earlier Bharti had 250 Airtel Connect stores which were
exclusive outlets (for its services) and about 250 Airtel Points which were
kiosks in larger shops. Now activation can be done by all of them, and not
• Pre- paid cards are really catching up with the mobile phone users and it is
actually helping the market to increase. First, they are easier to obtain and
company convenient to use. Unlike post-paid, one need not pay security
focusing on two factors to make pre-paid cards more attractive. Keeping the
48
entry cost low for consumers and making recharging more convenience.
based company Venture Infotech which will enable a pre-paid card user to
renew his subscription by just swiping a card. The system will not only save
users the hassle of going out and buying a card every time it expires but
also enable mobile companies to reduce the cost of printing and distributing
cards.
doorsteps. The company is also joining hands with local grocery shops
which will enable users to recharge their cards by just making a phone call
innovating to enhance the value proposition for its pre-paid service. They
subscribers.
• Bharti Cellular has also launched a special service, CareTouch, for high-
for any assistance they require. Customers can dial 777 and enjoy a slew of
and value-added services without any additional paper work. Bharti Cellular
49
recorder ensuring that they save time. Dedicated ‘CareTouch’ executives
are expected to assist customers with any service on priority basis. Besides
the regular proactive reminder calls for bill payment, customers can also call
• Airtel presented MTV Inbox; the first ‘on-air’ SMS based interactive music
dedication show exclusively for Airtel and Airtel Magic customers. Highly
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Bharti’s View on its Branding strategy:-
First, brand building efforts in today’s context have to be seen in a more holistic
manner. Delivering value on a sustained basis is perhaps the most potent key to
Customers (be it for industrial products or consumer goods and services) across
the world are more informed and, at the same time, becoming more individualistic
in their needs and far more demanding with the passage of time.
emerging customer needs, and then reacting in “real-time” are essential to attract
and retain customer loyalty — a key element of creating brand equity in the
present situation.
Customizing the product (and communication of its benefit) to meet the specific
brand appreciation.
As far as allocation of time and financial resources are concerned, too many
promotion. This is not to say that advertising and promotion are less relevant. On
the contrary, with more choices and higher media clutter, businesses need to
budget for an increasingly higher spend on their brand promotion but this has to be
philosophy and core design, production, and delivery operations for the product
51
itself.
The positive spin to this argument is that by first addressing the fundamentals, the
It is, however, crucial to note that in the years to come, not only will the cost of
building a regional or a national (or an international) brand will continue to rise but
also the time taken to do so will be longer and will need sustained and focused
efforts.
52
Findings
and
Analysis
53
OCCUPATION
AGE GROUP
28-35,10%
20% 15-21,
15%15%
20%
55%
Age Group Graph 21-28, 65%
STUDENTS EXECUTIVES HOUSEHOLDS OTHERS
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 gives 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 Graph
As the 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, Tele - callers etc. who require mobile
for their official purposes. The next category is the households, who are either
housewives, small units which operate from their homes etc. They are 20% of the
54
SERVICE PROVIDER
30%
O
H
TC
50%
U
H
10%
L
TE
R
60%
AI
15%
EA
FULLY PARTIALLY
ID
0%
DISSATISFIED 20% 40%
FULLY60%
DISSATISFIED
Series1
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. So,
that could be one of the reasons of such a low percentage. The remaining 5% had
trump connections.
As the above graph clearly shows that customer services at Airtel seems poor.
55
SIM TYPES OF CARDS
CARD
15%
Monthly Expense
60% of the people are dissatisfied with the customer services provided by Airtel.
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.
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
56
AWARENESS ABOUT WLL
1000, they could the ones having sim connections or having cash cards and
NO
45% YES
55%
WLL seemed to be a new word for many of the people. 45% of the people were
not at all aware of such a technology. So, in order to get the answer for this
question they were first explained the concept. Only, 55% people knew what WLL
is all about.
57
AWARENESS OF WLL PLAYERS
TATA
INDICOM
Awareness of WLL Players Graph
15%
RELIANC
E
85% which was popular amongst the interviewed people. As
Reliance was the brand
Reliance had done so much advertising and has it banners and hoarding spread
all over Delhi. So, this could be one the reasons of its popularity. Tata was hardly a
known brand in this new field. Possibly, because of less promotions done by them
as compared to Reliance.
On the basis of analysis of the questionnaire I have found that the maximum no.
of people who use mobile phones are in the age group of 20 to 28. who are the
There are more no. of prepared cards than post paid cards. The mobile users
want to spend money side by side than to spend money at the end of the month on
a big bill.
Now when I compared Airtel with its competitor from the point of view of the
consumer I found that on the basis of Tariff plan, value added services and billing
accuracy Airtel is at par or ahead of its competitor but in the case of customer care
and availability they lag behind there competitors. As, Airtel has a hold in the
market because it has the maximum no. of connections, so it must improve upon it
customer services. As far as WLL is concerned people are aware about it but not
many people are aware about Tata. They only Know more about Reliance. People
58
at this point of time are not interested to switch over from GSM to WLL.
59
Suggesti
ons
60
SUGGESTIONS
Following are the few suggestions to AIRTEL for improving the market share and
1. PRODUCT
*Modification must be brought about in AIRTEL, in terms of quality. Its
2. PLACE
* The brands must be made available easily in, PCO & general stores.
3. PROMOTION
*Company must undertake extensive promotional activities like
awareness.
tools like gifts, contests and coupons must be given to retailers as well as
61
SWOT
Analysis
62
SWOT ANALYSIS
Strengths
• Being one of the largest companies in India the company has achieved
distribution network.
financial authority.
• The company‘s bottom line falls victim to the bloated and highly paid
Weakness:
Opportunities:
63
• There is a lot of scope of product and market diversification.
• Exports of products will also have huge chances in the coming years.
• Airtel’s business has ample scope for gaining market share from the
about growth.
Threats
FMCG majors and for Airtel also it will be difficult to maintain historical
64
RECOMMENDAT
ION
65
RECOMMENDATION
I have made following recommendation to the company after doing the summer
training there:
• The company should modify its credit policy as they only target the cash
paying customers who are not easy to trace.
• The company should emphasis more on the quality of Pharmaceuticals
Products it was mostly claimed by the exporters that their receipts from
company doesn’t matches with the sample’s quality shown before giving
orders.
• The company should makes its marketing strategy flexible enough in order
to face competition.
• The company should keep an eye on the proper delivery of the goods to
exporter on time, as it has been recommended by exporters to make the
delivery on time.
• The company rate policy must be flexible enough to catch new customers
because if company offers lower price to a new customer then he may
continue buy the goods and can be a permanent customer for the company.
• The company should offers such rate in the market so that it may able to
catch a biger market share and it should be able to compete with the local
traders and commission agents while having a brand name.
The company should take the opinion of exporters from time to time to know what
problems they are facing from the company’s side? And if any change they require
in present supplying condition?
66
LIMITATI
ON
67
LIMITATIONS
No project is without limitations and it becomes essential to figure out the various
constraints that we underwent during the study. The following points in this
1. During the study, on many occasions the respondent groups gave us a cold
shoulder.
2. The respondents from whom primary data was gathered any times displayed
complete ignorance about the complete branded range, which was being studied.
study.
7. Lack of proper information and experience also because hurdle for me.
8. Some retailers did not answer all the questions or do not have time to answer.
68
CONCLUSI
ON
69
CONCLUSION
After analyzing the findings of the research, I can conclude that Airtel lagged
The maximum no. of people who use the mobile are in the age group of 20 to 28.
Cash cards are the most popular type of mobile connections, as they are
Maximum no. of people spend RS 500 on their connections. As Airtel is the only
As we know that now Airtel has already launched its product with logo “’ Aisi
azaadi aur kahan”’ has already became popular in market. So we can say that
inspite of so many competitor in the market Airtel is having a good position just
because every time, it tries its best to understand the need of its important
customer.
70
BIBLIOGRAPHY
71
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
Websites:
www.Airtelworld.com
www.tataindicom.com
www.india.com
Magazines:
72
Question
naire
73
QUESTIONNAIRE
Dear Sir/Madam,
Airtel
Vodafone
Idea
Reliance
Tata Indicom
Q.2 For how long you have been using Airtel Product?
0-2 Years
2-5 Years
5-10 Years
More than 10 years
Yes
No.
74
Q.5 If yes, which sources are used?
Magazines
Dealers
Sales Executives
Operators reference
Pamphlets and catalogue
Reference from friends and relatives
Any other
Q.6 What are the features you look for in a product before making
purchase decision? Give preferences (1-Highest, 6- least)
Brand credibility
Price and Discount
After sales services and parts, network
Value for money
Performance
Q.7. Which of these marketing / sales schemes attracts you while purchasing
any connection?
Good Network
Discount scheme
Service package
Any other
Q.8 If you have to purchase a new connection or product in near future, which
Brand will you go for and why?
___________________________________________________
___________________________________________________
___________________________________________________
___________________________________________________
Q.9 Are you aware of various promotional activities being run by Airtel, if yes
then how? Are you satisfied with these promotional activities?
75
Very Satisfied Somewha Not
Satisfied t Satisfied satisfied
Customer
Care
By Ad
Films
By Camp
24 hrs call center services
Q.11 What are you suggestions for improving the product quality, service
availability and parts availability?
____________________________________________________________
____________________________________________________________
____________________________________________________________
________________________
76
30%
25%
20%
airtel
idea
15% vodafone
reliance
tata indicom
10%
5%
0%
77
80%
70%
60%
50%
0-2 years
2-5 years
40%
5-10 years
above 10 years
30%
20%
10%
0%
78
80%
70%
60%
50%
yes
40%
no
30%
20%
10%
0%
79
60%
50%
40%
news paper
magazines
dealers
30%
sales executive
pamphelets
others
20%
10%
0%
80
45%
40%
35%
brand
30%
credibility
price &
25%
discount
after sales
20%
service
15% value for
money
10%
5%
0%
81
45%
40%
35%
30%
15%
10%
5%
0%
82