A STUDY ON CUSTOMER PERCEPTION OF AIRTEL BROADBAND SERVICES AMONG SMALL MEDIUM ENTERPRISES INDORE

PROJECT REPORT Submitted by

MUNAWWAR RAZA KHAN

In partial fulfillment of the requirement For the Award of the

MASTERS DEGREE IN BUSINESS ADMINISTRATION

Under the Guidance Of

Prof. KIRAN AGARWAL

CH Institute of Management And Communicat Indore (m.p.)

1

CERTIFICATE

This is to certify that the project study entitled CUSTOMER PERCEPTION STUDY ON AIRTEL BROADBAND SERVICES AMONG SME CUSTOMERS., is a bonafide work done by MUNAWWAR RAZA KHAN and submitted in partial fulfillment of the award of degree in Master of business Administration, before DAVV University, Indore.

Faculty Guide Academics Prof. Kiran Agarwal Saxena

Director Dr. Mayank

DECLARATION
I, MUNAWWAR RAZA KHAN, DO hereby declare that the project Customer perception study on Airtel broadband services among SME customers submitted in partial fulfillment of the award of the Master Of Business Administration Degree of the DAVV University, Indore, has been carried out by me under the guidance and supervision of Prof. Kiran Agarwal, CH Institute of Management and Communication, Indore, during the academic year 2009-11.

It has also not being submitted by me or any body for the award of any other degree or diploma of this or any other institution earlier.

Indore khan Date:

Munawwar raza

ACKNOWLEGEMENT
First and foremost, I thank the Almighty God for sustaining the enthusiasm with which plunged into this endeavor. The Project could not have materialized, if it were not for the Guidance from my seniors, Peers, my honorable Teaching Staff, Faculty members of CH Institute of Management and Communication, Indore. Little bit of my own Research work, mind-work and above all the people at BHARTI AIRTEL LTD. The inception of this project has been a great learning experience, and also has put in place all fragmented ideas in various areas within me to more logical and meaningful results. I also take this opportunity, reminiscent with memoirs of acquaintances at BHARTI AIRTEL LTD., their overwhelming support & many unforgettable gestures, and thank them profusely. A Special thanks to: 1. Mr.GURMEET OBEROI 2. Mr.ASHWANI KHANNA 3. Mr.ANIL KHARBANDA 4. Mr.ABHISHEK UPADHYAY BUSINESS HEAD CORPORATE HEAD CHANNEL PARTNER CHANNEL MANAGER

Last but not the least; I extend my gratitude towards my parents, faculties and friends who extended their wholehearted support towards the successful completion of this Project Work.

MUNAWWAR RAZA KHAN

CONTENTS Title Chapter 1 1.1 Introduction 1.2 Industry Profile 1.3 Company Profile 1.4 Company History 1.5 Chairmen profile 1.6 Organization structure 1.7 Management profile Chapter 2 2.1 Research Methodology 2.2 Objectives of the Study 2.3 Need and Scope 2.4 Formulation of Hypothesis 2.5 Limitations of the study Chapter 3 3.1 Analysis and Interpretation Chapter 4 4.1 Findings 4.2 Suggestions 4.3 Conclusion Bibliography

Appendix

LIST OF TABLES

Table no 1. 2. 3. 4. 5. 6. 7.

Title Table showing the necessity of net connection in the organizations Table showing the type of connection used in the organization. Table showing the number of systems used in the organizations Table showing telecom expense for voice Table showing telecom expense for Data transmission Table showing the reason for choosing Airtel broad band connection

Page no 51 52 53 54 55 56

Table showing customer rating of speed of data transmission 57 Table showing customer rating of safety of data transmission 8. Table showing customer rating of security of data processing 9. Table showing customer ranking of usage experience 10. Table showing customer rating of after sales service 11. 12. 13. 14. Table showing customer rating of how Airtel helped the customers to solve their problem 62 Table showing rating of Airtel broadband with other competitors in the same product category 63 Table showing the overall satisfaction level of Airtel broadband customers. 64 61 60 59 58

LIST OF CHARTS Char t no

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Title
Chart representing the necessity of net connection in the organizations Chart representing the type of connection used in the organization. Chart representing the number of systems used in the organizations Chart representing telecom expense for voice Chart representing telecom expense for Data transmission Chart representing the reason for choosing Airtel broad band connection Chart representing customer rating of speed of data transmission Chart representing customer rating of safety of data transmission Chart representing customer rating of security of data processing Chart representing le showing customer ranking of usage experience

Page no
51 52 53 54 55 56 57 58 59 60

Chart representing customer rating of after sales service 61 Chart representing customer rating of how Airtel helped the customers to solve their problem 62 Chart representing rating of Airtel broadband with other competitors in the same product category 63 Chart representing the overall satisfaction level of Airtel broadband customers. 64

SUMMARY

Executive Summary

The SIP titled To study the Customer Perceptions study of AIRTEL broadband Services among the Small and Medium Enterprise Customers in Indore. The main objective of the study was to know how the customers of AIRTEL Broadband perceive its Services in Indore City are satisfied with the services provided by AIRTEL and also to identify the factors affecting the preferences of the customers. As a part of my study I covered most of the areas in Indore including places like Vijay nagar, M.G.Road, Bhanwar Kuwan, A.B.road, Y.N.Road, Race Course road and Electronic complex. The sampling technique used for this study was simple random sampling and the sample size was 100. The tool which I used to analysis the data was simple average method and the datas where put in tabular form as well as in chart form also.

As a result of this survey I was able to conclude that more than 70% of the customer was satisfied by the service provided by AIRTEL and the factors like customer service, technical factors affected the preference of consumers in choosing AIRTEL.

Chapter -1 Introduction

10

INTRODUCTION TO THE STUDY

The management thesis which I was done as a part of my studies is A study on customer perception of Airtel broadband services among small medium enterprises, Indore. The study I conducted provided me an excellent opportunity to implement all that I have learnt in my class room sessions in the practical outfield.

The Bharti AIRTEL landline and broadband services has there in the market of Indore couple of years and made there own identity in the market as a landline and broadband service provider with a good number of high pulsing customers. Among those good pulsing customers the SME customers are also one of them. AIRTEL mainly focus on the customers of SME customers who pays the average monthly bill amount of above Rs.2500/-. I am doing my thesis on this particular topic due to the reason that I believe it will help me know more about the marketing strategy, competitiveness and also about the customer behavior. My thesis will help the company to know more about their strength, customers and the area where they have to concentrate more and also about their competitors strategy. This will also help the company to build a good relationship with the customers.

11

CUSTOMER

A customer is someone who makes use of the paid products of an individual or organization. This is typically through purchasing or renting goods or services.

The word historically derives from custom, meaning habit; a customer was someone who frequented a particular shop, who made it a habit to purchase goods of the sort the shop sold there rather than elsewhere, and with whom the shopkeeper had to maintain a relationship to keep his or her custom, meaning expected purchases in the future. The shopkeeper remembered the sizes and preferences of his or her customers, for example. The word did not refer to those who purchased things at a fair or bazaar, or from a street vendor.

Types of customers Customers can be classified into two main groups: internal and external. Internal customers work for the organization, possibly in another department or another branch. External customers are essentially the general public.

12

Internal customers People working in different departments of the vendors organization. People working in different branches of the vendors organization. External customers Individuals Businesses or business people, including suppliers, bankers and NGOs, Government bodies, Voluntary organizations.

competitors.

Needs and Expectations Customer needs may be defined as the facilities or services a customer requires to achieve specific goals or objectives. Needs are generally nonegotiable, but may be optional or of varying importance to the customer. In any transaction, customers seek value-for-money, and will often consider a range of vendors offers before settling on a purchase. Customer expectations are based n perceived values of facilities or services as applied to specific needs. Expectations are influenced by cultural values,

13

advertising, marketing, and other communications, both with the supplier and with other sources. Expectations are negotiable and modifiable.

Both customer needs and expectations may be determined through interviews, surveys, conversations or other methods of collecting information. Customers at times do not have a clear understanding of their needs. Assisting in determining needs is a valuable service to the customer, the process, expectations may be set or adjusted to correspond to known product capabilities or service levels. A Customer can be defined on a businessmans or Sellerss point of view as: A customer is the most important person in any business. A customer is not dependent upon business. Business is dependent upon him. A customer is an essential part of the business- not an outsider A customer is not just money in the cash register. He is a human being with feelings and deserves t be treated with respect. A customer is a person who comes to sellers with his needs and his wants. It is sellers job to fill them. A customer deserves the most courteous attention the businessmen can give him.

14

 He is the lifeblood of every business. He pays the salary. Without him business would have to closed the doors. As marketers we must never forget int. Thus customer is treated as the most important fundamental aspect of marketing other than competitor and values.

CUSTOMER SATISFACTION
Customer satisfaction is a business term which is used to capture the idea of measuring how satisfied an enterprises customers are with the organizations efforts in a market place. Every organization has customers of some kind. The organization provides products (goods and/or services) of some kind to its customers through the mechanism of a marketplace. The products that organization provides are subject to competition whether by similar product6s or by substitution products. The reason an organization is interested in the satisfaction of its customers is because customers purchase the organizations products. Te organization is interested in retaining its existing customers and increasing the number of its customers. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person.

15

The state of satisfaction depends on a number of both psychological and physical variables.

The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organizations products. Because satisfaction is basically a psychological state, it is a difficult thing to measure quantitatively. In other words, there are no units of satisfaction that have been defined. The usual measures of customer satisfaction involve a survey instrument with a set of statements. The customer is asked to evaluate each statement and then select from a scale how the customer agrees or disagrees with statement. General model A general model of the buyer decision process consists of the following steps: Want recognition; Search of information on products that could satisfy the needs of the buyer; Alternative selection: Decision-making on buying the product; Post-purchase behavior.

16

There exists an interaction between the desired results and customer satisfaction, customer loyalty and customer retention. They may go by other names such as patients, clients, buyers, etc. without the customer, it is impossible for any business to sustain itself. Achieving the desired results is frequently a result of customer action. Any business without a focus on customer satisfaction is at the mercy of the market. Without loyal customers eventually a competitor will satisfy those desires and your customer retention rate will decrease. There exists an interaction between the desired results and customer satisfaction, customer loyalty and customer retention. They may go by other names such as patients, clients, buyers, etc. without the customer it is impossible for any business to sustain itself.

Achieving the desired results is frequently a result of customer actions. Any business without a focus on customer satisfaction is at the mercy of the market. Without loyal customers eventually a competitor will satisfy those desires and your customer retention rate will decrease. There are several levels of Customers, they are:-

Dissatisfied customer Looking for someone else to provide product or service Satisfied customer Open to the newt better opportunity
Loyal customer Returns despite offers by the competition

17

One of the ways to help obtain loyal customers is by having products and services that there is very little chance that the customer requirements will not be met and make them delightful. Of course one of the difficult is, understanding the true customer requirements. Even when you have the requirements in advance the customer can and will change them without notice or excuse. Having a good recovery process for a dissatisfied customer is a necessity.

Customer satisfaction measurement program

Customer satisfaction research is not an end unto itself. The purpose, of course, in measuring customer satisfaction is to see where a company stands in this regard in the eyes of its customers, thereby enabling service and product improvements which will lead to higher satisfaction levels. The research is just one component in the quest to improve customer satisfaction. Customer satisfaction and consumer behavior are very closely related. Consumer behavior is lightly different from customer satisfaction. Consumer Behavior is the study of how people buy, what they buy, when the buy and why they buy. It is a sub category of marketing that blends elements from psychology, sociology, socio psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups, it studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand peoples wants, it also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general, today the customer satisfaction is also termed as customer
18

delight; rather than satisfaction present day marketers try to make the customers delight. Indian business is facing a variety of newer challenges. The economy requires a different set of marketing responses, a major business response is to sustain freshness in marketing and, to locate business response is to sustain freshness in marketing and, to locate better approaches for delighting customers, the name of the current marketing game is sharply focus on customer satisfaction and retaining the satisfied customer for life. The idea of delighting customers may sound simple. However, it demands extreme concentration and creativity in making it happen, it requires an organizational approach. Thus, the route to customer delight is most enduring when the entire organization is structured and geared for it under the challenge leadership of marketing. The marketers need an array of marketing skills, concepts and frame works for ensuring customer delight. Models of consumer behavior: One of the best known of the explanatory models that have been developed to explain the interactions involved is that of Howard and Sheth. This contains a deal of common sense, although, as is often the case with such models, the rather obscure terminology makes it appear more confusing than it really is. The inputs (stimuli) that the consumer receives from his or her environments are:1. Significative the real (physical) aspects of the product or service (which the consumer will make use of)

19

2. Symbolic the ideas or images attached by the supplier (for example by advertising) The outputs are what happens, the consumers actions, as observable results of the input stimuli. Between the inputs and outputs are the constructs, the processes which the consumer goes through to decide upon his or her actions. Howard and Sheth group these into two areas:1. Perceptual those concerned with obtaining and handling information about the product or service,
2. Learning the processes of learning that lead to the decision

itself. Such models can help theorists to explain consumer behavior better, but it can be difficult to put them to practical use. Brand Image and Brand Identity and Corporate Identity: Brand image, in the other hand, is the totality of consumer perceptions about the brand, or how they see it, which may not coincide with brand identity; companies have to work hard on the consumer experience to make sure that what customers see and think is what they want then to. Brand identity is the total proposition that a company makes to consumers the promise it makes. It may consist of features and attributes, benefits, performances, quality, service support, and the values that the brand
20

possesses. The brand can be viewed as a product, a personality, a set of values, and a position it occupies in peoples minds. Brand identity is everything the company wants the brand to be seen as, Corporate identity is concerned with the visual aspects of a companys presence, when companies undertake corporate identity exercises; they are usually modernizing their visual image in terms of logo, design, and collaterals. Such efforts do not normally entail a change in brand values so that the heart of the brand remains the same what it stands for, r its personality. Unfortunately, many companies do not realize this fallacy, as they are sometimes led to believe by agencies and consultancy companies that visual changes will change the brand image. But changes to logos, signage, and even outlet design do not always change consumer perceptions of quality, service, and the intangible associations that come to the fore when the brand name is seen or heard. In total Tse and Wilton (1988) has given some detail in their definition for customer satisfaction as:-

The consumers response to the evaluation of the perceived discrepancy between prior expectations (or some norm of performance) and the actual performance of the product as perceived after its consumption.

21

1.2 Industry Profile The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world.

History of Indian Telecommunications started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control. The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and longdistance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar and Nigam Limited (VSNL) for International telecommunications for service in Mahanagar Telephone Nigam Limited (MTNL)
22

metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year.

Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing.

Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodafone-Hutch, and
23

Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand. Market Share of Public and Private Players Both fixed line and mobile segments serve the basic needs of local calls, long distance calls and the international calls, with the provision of broadband services in the fixed line segment and GPRS in the mobile arena. Traditional telephones have been replaced by the codeless and the wireless instruments. Mobile phone providers have also come up with GPRS-enabled multimedia messaging, Internet surfing, and mobile-commerce. The muchawaited 3G mobile technology is now entered the Indian telecom market. The GSM, CDMA, WILL service providers are all upgrading themselves to provide 3G mobile services. Along with improvement in telecom services, there is also an improvement in manufacturing. In the beginning, there were only the Siemens handsets in India but now a whole series of new handsets, such as Nokia's latest Nseries, Sony Ericsson's W-series, Motorola's PDA phones, Apple iphone, Blackberry mobile etc. have come up. Touch screen and advanced technological handsets are gaining popularity. Radio services have also been incorporated in the mobile handsets, along with other applications like high
24

storage memory, multimedia applications, multimedia games, MP3 Players, video generators, Camera's, etc. The value added services provided by the mobile service operators contribute more than 10% of the total revenue.

Private 52%

Public 48%

The telecom sector in the country has already adopted the latest technological advancements to cater to the demands of the growing market. Telecom Expo India, Convergence India, VAS India and IPTV India being organized year to year are all efforts in this direction. Moreover, with cheaper handsets and lesser tariffs, it is expected that by the year 2010 there will be over 500 million subscribers in the Indian telecom market.

25

Also, the telecom industry this year will be focusing more on rural areas to connect them with the urban areas so that the farmers and the small-scale industries can have faster access to information related to weather and market conditions.

The Industry can be segmented into: I. Fixed line (Landline) II. Wireless (CDMA, GSM, WLL)) III. Internet Services (Dial-up, Broadband etc.) Segmentation of the target customers Customers were divided on the basis of their occupation 1. Home users (Residential) 2. Small & Medium Enterprises (SME) 3. Corporate Sector (SMB)

1.3 Company Profile

Bharti Airtel
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group, has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into
26

retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management. BHARTI AIRTEL LTD started in July 7 1995.Its head quarters is at Delhi. In 1998 company started their first land line operation. Airtel is the name of their brand. AIRTEL stands for Affectionate, Interested, Respectful, Tolerant, Energetic and loving .Their logo is Think fresh Deliver More. Their first company is Bharti Cellular Limited under the brand name of Airtel. Another one is Bharti Tele Sonic Ltd under the brand name of India One. Then Bharti Tele Net Ltd under the brand name of Touch Net. Another one is Bharti broad band Ltd under the brand name of Manthra Online. The companies Bharti Telenet Ltd and Bharti Broadband Ltd combined together and form Bharti Broadband and Teleservices Ltd. After sometime the companies Bharti Telesonic Ltd and Bharti Broadband and Teleservices Ltd combined together and form Bharti Infotel Ltd. In 13th September 2004 all the four companies combined together and form Bharti AIRTEL Ltd. Bharti Airtel is one of India's leading private sector providers of telecommunications services with more than 79 million subscribers as of November 2008.

Bharti Airtel makes Facebooks mobile site free for its 130 million plus customers. Now use internet to browse, record shows through your Airtel digital TV recorder.
27

Bharti Airtel to Observe Silent period from June 30, 2010.

Airtel digital TV Adds High Definition Excitement to Soccer Fever -Offers ESPN on HD platform for customers. Airtel App Central - Indias first mobile app store -celebrates 4 months of store opening. Bharti, Cisco, and Servion join hands to offer Hosted Contact Center Services.

Airtel comes to you from Bharti Airtel Limited, Indias largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) 1. Mobile Services 2. Airtel Telemedia Services 3. Enterprise Services.

The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand.

28

Airtel Telemedia Services: Airtel is offering broadband & Internet services across 94 cities in India. It is powered by DSL technology which gives you blazing-fast; secure Internet access as soon as you switch on your computer. It also gives you the power of limitless discovery on Internet from shopping to banking, paying bills to making new friends and not to mention endless fun & learning for children. The special features of Airtel broadband services are,
Why wait to connect - With Airtel Broadband, the internet is always

ON, always available. No more waiting for dial-up to connect. You are ready to use the internet as soon as you switch on your computer.
Power Surfing - With speed of up to 2Mbps, feel the excitement of

doing more on Internet. Shop, download MP3, exchange heavy files and chat at an enviable speed, all thanks to an extensive Broadband Services infrastructure. No more disconnections in the middle of download.
Surf while you talk - No more missed calls or blocked telephone

lines while using the internet. Airtel Broadband Services connection does not block existing telephone lines and allows one family member to use the phone while another member surfs the net.
Robust installation - The world class infrastructure & end-to-end

digital network of underground copper cable lines ensure an

29

extremely robust connection that eliminates the risk of damage. Superior server technology and a dedicated port provide total security to data storage and information exchange through the Internet.
24x7 customer supports The 24x7 customer support unit helps

you to serve better. It works for round-the-clock, 365 days a year. The customer feedbacks are carried out with great care.
Speed on demand The customer can enjoy a dedicated speed of

up to 2 Mbps without having to change your subscription plan. Whats more, you only pay for what you use.
Airtel PC security - Airtel along with FSecure, one of the best in

PC security, provides you with a service that tries to answer a Broadband customers most frequently asked question Is my PC safe?.
Payment options Airtel offers you a number of payment methods

like cash payment, ECS- Easy payment method, Credit card method, check drop boxes, online payment. You can choose any one of the method for paying the cash. Services:

The services offered by Airtel Broadband & Internet are listed below: 1. Video Surveillance Solutions

30

With this service you can observe your office, warehouse, shop and staff from your PC from anywhere and at all times, with the Video Surveillance Solution.

2. In Touch In Touch is a great way to stay connected. It is an easy-to-use personal communications service that connects you with your friends and family, using a PC or a TV and a Broadband (high speed) Internet connection. With In Touch you can do various activities like Video & Audio messaging, video & Audio Calling, Video Postcard TM service etc. 3. NetXpert NetXpert is automated broadband care technology. Globally accepted and successfully used by over 38 million customers worldwide, the NetXpert provides immediate solutions for Internet connectivity related problems. The NetXpert helps in the speedy installation and activation of the Broadband connection on your PC. Thereafter, it helps to identify any system or network problems that may come up from time to time. With NetXpert, you can detect and repair most problems, all by yourself, and experience the joys of uninterrupted Broadband. 4. Online Tests

31

Airtel Broadband Services offer you online competitive tests for GRE, GMAT, SAT and MBA, from the comfort of your home.

5. Wifi Wifi is a wireless technology brand by the Wifii Alliance that gives you a host of fantastic advantages ranging from reliability to security. The simple installation procedure gives you access to unsurpassed performance instantly. Common applications for Wifi include Internet and VoIP phone access, gaming, and network connectivity for consumer electronics such as televisions, DVD players, and digital cameras. Just like cell phones, televisions and radios, the wireless network also uses radio waves.

1.4 Company history

As soon as the telecom industry opened to private sector investment beginning 1994,a large number of Indian companies entered the segment with varying force, different strategies, and assorted aspirations; Bharti Airtel was one of the first comers, which in times to come was going to be the Numero Uno storywriter of The Great IndianTelecom story. Bharti

32

launched its first cellular telephony service Airtel in Delhi in September 1995, which was Delhis first & Indias second after Modi Telestra. Bharti Airtelsince its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services.

The company has an eventful history. Each year its existence was marked by a number of major events that have helped shape the company as we know it today.

1995-1996
Launches mobile service brand Airtel in Delhi and Himachal Pradesh. British telicom plc( BT ) acquire a stake in the company. 1995-1998

Becomes the first private telecom opretars to obtain a license to provide basic telephone services in Madhya Pradesh. Forms Bharti BT vast ltd., focused on providing vast solution across India and bharti BT internet ltd.

1999-2000

Acquires jt mobile, cellular services operator in Punjab, Karnataka and andra pradeh and becomes the largest private sector telecom operator in India.

2001-2002

33

Launches India one, Indias first private sector nation and international long distance service.

Become the largest cellular operator in the country by in the east Kolkata through acquisition and obtaining licenses for 8 circles.

2003-2004
Joins the us$ 1 bn revenue club Enter into historic strategic partnership with IBM and Ericsson for outsourcing the companys core it and network activities.

2005-2006

Acquires an all-India footprint with the launch of mobile services in Assam Vodafone, the world largest mobile service provider, acquires 10% economic interest in the company.

Becomes Indias largest integrated private operator based on the total consumer base

2006-2007

Receive a latter of offer form telecommunication regulatory commission of Sri Lanka to provide 2g and 3g mobile services in Sri Lanka.

Makes a foray into the USA with the launch of airtel callhome service for non resident Indians based there

2008-2009

It has become the first service provider to cross 10-carore subscribe base across India.

Voted Indias most innovative company - in a survey conducted by The wall street Journal in 2008
34

2009-2010

Offers fastest wire line broadband on VDSL2 technology in India Registrations open for the 2nd edition of the Airtel Delhi Half Marathon; in excess of 28,000 people will run together on November 1, 2009.

2010-2011

Bharti Airtel Limited (Bharti), Asias leading telecommunications service provider announced that it has entered into a legally binding definitive agreement with Zain Group (Zain) to acquire Zain Africa BV based on an enterprise valuation of USD 10.7 billion. Bharti Airtel makes Facebooks mobile site free for its 130 million plus customers.

35

1.5 Chairman Profile

Sunil Bharti Mittal is the Founder, Chairman and Group CEO of Bharti Enterprises, one of Indias leading business groups with interests in telecom, financial services, retail, realty, manufacturing and agriculture.

Sunil started his career at 18 after graduating from Punjab University in India in 1976 and founded Bharti. Today, at 52, he heads a successful enterprise which employs over 30,000 people. Bharti Airtel, the flagship group company, has a market capitalization of approximately US$ 25 billion. Sunil has been recognized with the Padma Bhushan, one of Indias highest civilian awards. He has also received the Lal Bahadur Shastri National Award for Excellence in Public Administration, Academics and Management for 2009. He is a past President of the Confederation of Indian Industry, the premier industry body in India (2007-08). Sunil has been awarded numerous awards and recognitions including the Global Economy Prize 2009 by The Kiel Institute, Germany. The USIndia Business Council has also honored him with the Global Vision Award 2008. He has received the GSM Association Chairman's Award for 2008.

36

Sunil was Co-chairman of the World Economic Forum in 2007 at Davos and is a member of its International Business Council. He is a member of the Leadership Council of The Climate Group. He is also a member of the Board of Trustees of the Carnegie Endowment for International Peace. He is a member of several premier international bodies International Advisory Committee to the NYSE Euronext Board of Directors, the International Business Advisory Council of London and the Advisory Board of the Global Economic Symposium. Sunil is also on the Telecom Board of the International Telecommunication Union, the leading UN Agency for Information and Communication.Technology. He is also a member of the Indo-US CEOs Forum. He serves as a member of the Executive Board of the Indian School of Business. He is also a member of the Academy of Distinguished Entrepreneurs, Babson College, Wellesley, Massachusetts. Sunil believes a responsible corporate has a duty to give back to the community in which it operates. This belief has resulted in Bharti Foundation, which is committed to providing education to underprivileged children in rural India. Sunil has been conferred with the degree of Doctor of Laws (Honoris Causa) by the University of Leeds, UK and the degree of Doctor of Science (Honoris Causa) by the Govind Ballabh Pant University of Agriculture & Technology. He is an alumnus of Harvard Business School, USA. He is an Honorary Fellow of The Institution of Electronics and Telecommunication Engineers.

Sunil Bharti Mittal has been awarded the Padma Bhushan, one of Indias highest Civilian Honors. The award is recognition of his pioneering efforts to put the nation on the global telecom map.

37

ASIA MONEY AWARD: - SUNIL BHARTI MITTAL was chosen as the top executive at the 2006 Asia money award.

Avaya Best Customer Service Award: - BHARTI AIRTEL has won the Avaya global connect customer responsiveness award, 2006 for best customer service in the telecom sector for the second year running. FORTUNE ASIA BUSINESSMAN OF THE YEAR: - SUNIL BHARTI MITTAL was adjudged as the Asia Businessman of the year 2006 by the globally renewed business magazine, fortune.

Vision & promise

By 2010 Airtel will be the most admired brand in India: Loved by more customers Targeted by top talent Benchmarked by more businesses 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.

1.6 Organization Structure

38

1.7 Management Profiles

Sunil Bharti Mittal:- Founder, Chairman and Group CEO of Bharti Enterprises. Manoj Kohli: - CEO (International) & Joint MD Bharti Airtel Ltd. Sanjay Kapoor:- Bharti Airtel Ltd. (India & South Asia).
39

Atul Bindal:- President Mobile Services. K Srinivas: - President of telemedia services. Jyoti Pawar: - Director Legal and Regulatory of Bharti Airtel. Shamini Ramalingam:- Director - Internal Assurance of Bharti Airtel Limited. Joachim Horn: - Executive Director Network Services Group. S.Asokan:- Executive Director - Supply Chain. Krishnamurthy Shanka: - Director Human Resources. Srikanth Balachande:- Chief Financial Officer Amrita Gangotra:-Director IT (India & South Asia)

Business Sections
Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Bharti Airtel Limited, a part of Bharti Enterprises, is India's leading provider of telecommunications services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) mobile services, broadband & telephone services (B&T) & enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 94 cities. The Enterprise services group has two

40

sub-units - carriers (long distance services) and services to corporate. All these services are provided under the Airtel brand.

Business Divisions
Mobile Services Bharti Airtel offers GSM mobile services in all the 23telecom circles of India and was the first private telecom service provider to Connect all states of India. Broadband & Telephone Services Our Broadband (DSL) & telephone Services (fixed line) are present in the 92 cities across India. Enterprise Services (Carriers) With 35,016 kilometers of optic fiber network we are a leading national long distance service provider. For international connectivity to east, we have a submarine cable landing station at Chennai. Products of Bharti Airtel Broadband and Telephony Services. DEL Direct Exchange Line Land line Phone (Voice) DSL Digital Subscriber Line for data Telephone Instrument Touchnet Dial-up-service

Business focus of Bharti Airtel Broadband and Telephony Services. Operational excellence Reducing churns Tightening cost Utilizing capacity

41

Quality Policy of Bharti Airtel broadband and Telephony Services.

Reduction of error level. Reduction of operating cost. Reduction of cycle time.

Organizational Culture of Bharti.

Cut hierarchy to where knowledge resides. Act transparently and couragebly.

Process focus of Bharti Airtel broadband and Telephony Services.

Process standisation and customization Best practice replication Speed of urgency

42

Strategy of Bharti Airtel Broadband and Telephony Services. Centralized reporting system

Customers of Bharti Airtel Broadband and Telephony Services.

Residents Small and middle enterprises PCOs(public call office) Corporates

Competitors of Bharti in Broadband and Telephony Services. Bsnl Relience Tata indicom

43

Chapter -2

2.1 RESEARCH METHEDOLOGY

The success of the analysis mostly depends on the methodology on which it is carried out. The appropriate methodology will improve the validity of the findings.
44

 Area of the study: The study was mainly concentrated on Indore region. Research Design: Descriptive Research: Descriptive research includes survey and fact-findings enquire of different kinds. The major purpose of descriptive research is description of the state affairs, as it exists at present. Data Collection: The study is based on the data collected through primary and secondary sources. Primary Data: An interview schedule was designed to collect primary data from various broadband users.

Secondary Data: Secondary data was collected from journals, magazines, web sites and from other relevant publications.

45

 Sampling Design: The sampling design mainly consists of the sample taken for the study along with the sample size, sample frame and sampling method. Sample Universe: All customers using broadband connection was taken as the sample universe.

Sample Size: From the universe, sample sizes of 100 customers were selected for the purpose of the study. Sample Frame: The customers were selected on a random basis from which the respondents were selected based on convenience.

Sampling Method:

46

Convenience sampling was used, based on the willingness and availability of the respondents. The study was conducted on consumers with different type of business.
Research period:

The time for the project was limited to 45 days only (from 1-30 July). From this, 30 days was spent for the collection of data.

2.2 OBJECTIVES OF THE STUDY

The summer placement study helps the student to check whether the theory and practice actually matches. Organizational exposure helps the student to know how effectively they performed in the market.

The primary objectives of the study was,

To Analyzing the satisfaction level of customers towards Airtel Broadband service.

The secondary objectives of the study was,

47

a) To study how the customer choose their respective landline and broadband services. b) To find the awareness among the customers about Airtel Broadband and its new products. c) To find out the problems faced by the broadband users d) To analyze the position of Airtel Broadband against its competitors. e) To analyze the loyalty status of the consumers. f) To identify the customer preferences. g) To find out the strength and weakness of product and its competitors h) To make suggestion, if any to improve existing condition.
i) To know if there are relationships between customer satisfaction

and customer loyalty.

2.3 NEED AND SCOPE OF THE STUDY

48

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.

Thus this study is aimed to provide the management with some knowledge about its status in market both in terms of sales and customer awareness. The research also aims to provide some ideas to improve the companys present condition.

2.4 FORMULATION OF HYPOTHESIS a) The more satisfied the customers are with the speed of data transmission, the higher is the customer satisfaction.
49

b) The more satisfied the customers are with after sales service, the higher is the overall satisfaction. c) The process of getting the problem solved will increases the customer loyalty and satisfaction
d) The higher is the overall satisfaction, the higher is the intention of

additional purchase. (up gradation or new purchase ) e) The higher is the overall satisfaction, the higher is the intention of recommendation. 2.5 LIMITATIONS OF THE STUDY
a) The behavior of the customer while approaching them to fill the

questionnaire was unpredictable.

b) The shortage of time was another constrain for the study.

c) There may be error due to bias of respondents.

d) Lack of customers cooperation was a major constraint.

e) Majority of the customer were too aggressive in nature.

f) The sample was restricted to 300 customers, which may restrict the

scope and completion of study.

50

Analysis and Interpretation

Table showing necessity of net connection in the organization Table 1 Opinion No. of respondents
51

Percentage

Very much needed Some what needed Not so needed Total

57 39 4 100 Chart 1

57 39 4 100

60 50 40 30 20 10 0

57

39

East

4 Much Needed Some what Not so

The Interpretation is that 57 % of the organizations are primarily depending on Internet usage. And 39 % of the organizations are using it as supporting activity for doing their business. Only 4 % of the organizations are thinking that internet is not necessary for doing there business.

Table showing the type of connection used in the organizations Table 2 Connection type Broadband Dial-up No. of respondents 100 0
52

Percentage 100 0

GPRS others Total Chart 2

0 0 100

0 0 100

100 90 80 70 60 50 40 30 20 10 0

100

East

0 Broadband Dial-up

0 GPRS

0 others

The Interpretation is that all of the sample units were using Broadband connection and none of them were using other type of connection for organizational usage.

Table showing number of systems used in organizations Table 3 Number of systems Lesser than 10 10 20 No. of respondents 76 16
53

Percentage 100 16

21 30 Greater than 30 Total

4 4 100

4 4 100

Chart 3

16%

4%

4%
lesser than 10 10-20 21-30 Greater than 30

76%

The interpretation is that 76 percentage of the organization is having less than 10 systems. Sixteen percentages of organizations are having between ten to 20 computers. Only 4 organizations are having between 2130 and greater than 30 systems. Table showing telecom expense for voice Table 4 Amount Below 2500 2500-5000 5001-1000 Above 10000 Total No. of respondents 45 37 13 5 100 Percentage 45 37 13 5 100

54

Chart 4

13%

5% 45% Below 2500 2500-5000 5001-1000 Above 10000

37%

The interpretation is that around 45 % of the customers in the sample have voice billing below 2500 Rs. 37 % of the customers have billing between 2500 and 5000. And 13 % of the customers have billing in between 5001 and 1000. Only 5 customers have billing above 10000.

Table showing telecom expense for Data transmission Table 5 Amount Below 2500 2500-5000 5001-1000 Above 10000 Total No. of respondents 20 38 37 5 100 Chart 5 Percentage 20 38 37 5 100

55

Above 10000 5% 5001-1000 37%

Below 2500 20% Below 2500 2500-5000 5001-1000 Above 10000 2500-5000 38%

The interpretation is that 20 % of the customers have Data (internet) billing below 2500/- . 38 % of the customers have billing in between 2500 and 5000. 37 % of the customers have billing of between 5001 and 1000. The remaining 5 % of the customers have data billing above 10000/- Rs. Table showing reason for choosing Airtel broadband connection Table 6 Characteristics Offers Service quality Speed & security of Data Brand Name Total No. of respondents 13 37 30 20 100 Chart 6 Percentage 13 37 30 20 100

56

Brand Name 20%

Offers 13% Offers Service quality Speed & Security Brand Name Service quality 37%

Speed & Security 30%

The interpretation is that only 13% of the customers preferred Airtel broadband because of offers. The highest 37 % of the customers preferred Airtel because of the quality of service offered by Airtel. The second most 30% of the customers have preferred because of the Speed of internet service. It also shows the brand name also has some implication before choosing Airtel Broadband services. 20% of the customer has chosen Airtel because of the brand name Airtel. Table showing customer rating of speed of Data transmission

Table 7 Ranking Poor Fair Good Very good Excellent Total No. of respondents 6 21 55 16 2 100 Chart 7 Percentage 6 21 55 16 2 100

57

Very good 16%

Excellent Poor 2% 6%

fair 21%

Poor fair Good Very good Excellent

Good 55%

The interpretation is that around 55% of the customers rated the speed of data transmission is very good in Airtel broadband. Only 6% of the customers are worried about the speed. 2% of the customers rated it as Excellent.

Table showing customer rating of Safety of Data transmission Table 8 Ranking Poor Fair Good Very good Excellent Total No. of respondents 6 20 47 22 5 100 Chart 8 Percentage 6 20 47 22 5 100

58

Very good 22%

Excellent 5%

Poor 6%

fair 20%

Poor fair Good Very good Excellent

Good 47%

The interpretation is that 47% of the customers rate safety of data as good. 22 % of customers ranked it as very good. Only 6 % of the customer feels it as bad. The customer who ranked it excellent contributes 5 % of the sample size. Table showing customer rating of security of Data during processing Table 9 Ranking Poor Fair Good Very good Excellent Total No. of respondents 3 25 45 19 8 100 Chart 9 Percentage 3 25 45 19 8 100

59

Very good 19%

Excellent 8%

Poor 3%

fair 25%

Poor fair Good Very good Excellent

Good 45%

The interpretation is that 45 % of the customer has ranked network security in Airtel broadband connection as good. Some 19 % has ranked it as very good. Only 3% has ranked it as poor. 25% of the customers has ranked it as fair.

Table showing customer ranking of usage experience Table 10 Ranking Poor Fair Good Very good Excellent Total No. of respondents 10 15 38 25 12 100 Chart 10 Percentage 10 15 38 25 12 100

60

Excellent 12% Very good 25%

Poor 10%

fair 15%

Poor fair Good Very good Excellent

Good 38%

The interpretation is that around 38% of the customers has ranked the usage experience was good. 25% of the customers ranked it as very good. 12% of the customers ranked it as excellent. Also 10 % of the customer rated it as poor. Table showing customer rating of after sales service Table 11 Ranking Poor Fair Good Very good Excellent Total No. of respondents 13 14 35 26 12 100 Chart 11 Percentage 13 14 35 26 12 100

61

Excellent 12%

Poor 13% fair 14%

Very good 26% Good 35%

Poor fair Good Very good Excellent

The interpretation is that, 12% of the customer has rated the after sales service as excellent. Some 26 % rated it as very good and 35% as good. But the concern is that 13 % of the customer also feel that the after sales service is poor.

Table showing customer rating of How Airtel helped them solve their problem Table 12 Ranking Poor Fair Good Excellent Total No. of respondents 7 27 53 13 100 Chart 12 Percentage 7 27 53 13 100

62

Excellent 13%

Poor 7% fair 27% Poor fair Good Excellent

Good 53%

The interpretation is that 13 % of the customer feels that the connection with Airtel broadband helped them to solve their network related problem which exists in earlier. Most of around 53 % felt that, it was good. 27% of the customer felt it was fair. Only 7% of the customer felt it as poor solving their network problem.

Table showing Rating of Airtel broadband with other competitors in the same category Table 13 Ranking Much better Some what Same Worse Total No. of respondents 45 35 10 10 100 Table 13 Percentage 45 35 10 10 100

63

Same 10%

Worse 10% Much better 45% Much better some what Same Worse

some what 35%

The interpretation is that around 45 % of the customers feel that Airtel broadband is much better than other products in this category. 35% customer feels that Airtel broadband is somewhat better than competitor products. Around 10% of the customer feels that it has the same service as that of competitors. And 10% of customer feels that it is worse than its competitors. Overall satisfaction level of Airtel broadband customers Table 14 Ranking Highly dissatisfied Dissatisfied Average Satisfied Highly satisfied Total No. of respondents 7 11 19 44 19 100 Chart 14 Percentage 7 11 19 44 19 100

64

Highly Satisfied 19%

Highly dissatisfied 7%

Dissatisfied 11%

Highly dissatisfied Dissatisfied Average Satisfied Highly Satisfied

Average 19% Satisfied 44%

The interpretation is that 19% of the SME customer is highly satisfied with the overall service provided by Airtel broadband. 44% of the customer is satisfied with the overall service offered by the service. Around 7% of the customer are highly dissatisfied bye the service.

Findings

1. Quality of the service provided plays an important role in keeping the existing customers and to bring new customers. 2. In most of the organization, Internet plays an important role in the day to day activities. 3. Most of the organizations prefer broadband connection over other type of connection because of speed and other compatibility of service. 4. A number of the organization preferred Airtel because of the quality of service provided and also for the speed of data transmission. 5. Many customers have rated the speed of data transmission is very good. Some customers had complaints regarding the speed. This is mostly due to number of systems connected by single broadband connection.
65

6. The safety and security of Airtel network is rated very well by most of its customers. Safety of data is very important in any type of organization. Airtel with its own PC security suite helps organizations protect its data from theft and prevents it from harmful attacks. 7. After sales service plays essential part of customer satisfaction. More than 10% customers have complaints regarding the after sales service of Airtel broadband. But a number of customers have reported it excellent and very good. 8. Customers feel Airtel broadband was much better than other competitive products of the same category. This shows the place Airtel has achieved in the minds of the customer in Indore region. 9. The overall satisfaction level is very high among customers.

Suggestions
On completion of the project work Customer perception towards Airtel broadband service among Small and medium scale industries (SME) customers of Indore, I would like to give my suggestions which the company can make use of:1. The customer rate quality of the service as the most relevant one and hence Airtel Broadband services should maintain the quality in services and should make improvements in this feature. 2. Some customers are planned to discontinue because of high billing and after sales service is not good. Though it is a small percentage the company should focus on these to keep the brand image in the minds of people. 3. If any complaint is observed from the customers, it should be dealt quickly. This will reduce the chance for dissatisfaction.

66

4. Many dissatisfied customers asked for more information about other plans or change of plans. So the dissatisfaction may be due to providing wrong plans by the sales persons. So the company can make use of this opportunity to retain its customers by providing the right plans. 5. SME segment is a high potential market (especially in Indore) and the company should take care of more promotional activities in which advertisement plays and effective role and hence to have a competitive edge over other brands. 6. Lack of awareness about the plans is high among customers. So the company must provide an awareness program about the specialized plans for them. 7. The detailed billing is provided as a value added service in Airtel broadband. It is free of cost in its competitors like BSNL. So the company could provide the service as free of cost. It will help customers clear their doubts about billing and hence to improve their satisfaction level.

CONCLUSION

The project titled A study on customer perception of Airtel broadband services among small medium enterprises, Indore was carried out among the customers/consumers in Indore Region. The overall objective of the study was to fine out how the customer perceives Airtel broadband services and to find out their satisfaction towards the service against its competitors. The study revealed the picture of customers perception and satisfaction which help Airtel broadband to encourage more people to be the customers/consumers of Airtel Broadband.
67

BIBLIOGRAPHY

Philip Kotler and Gery Armstrong ,Principles of Marketing Management Ramaswamy V.S, Namakumari S; Marketing management D.D. Sharma, Marketing Research Green & Tull, Marketing Research Kothari C.R, Research Methodology- Methods and Techniques; Second Edition; 2004

68

 Websites:

WWW. BHARTIAIRTEL.IN WWW. AIRTEL.IN WWW. GOOGLE.COM

APPENDIX
QUESTIONNAIRE

Name of the organization : _____________________ Authorized Persons name and Contact No : _____________________ Type of the Business : ______________________ How Long in this Field :______________________

1. Do you think Net-Connection is necessary for your organization? Very much needed [ ] Some what needed [ ]

69

Not so needed

[ ]

2. Which Net-Connection is used in your Organization? Broadband Dial-up GPRS Others (Wireless...) [ ] [ ] [ ] [ ]

3. How many Systems are connected in the firm? a) Less than 10 b) 10 20 c) 21 30 [ ] [ ] [ ] [ ]

d) Greater than 30

4. Total Telecom Expense including voice & Data a) voice Below 2500 [ ] Above 2500 [ ] 5000-10000 b) Data Below 2500 [ ] 5000-10000 [ ] Above 10000 [ ] [ ]

Above 2500 [ ]

Above 10000 [ ]

5. Why do you prefer Airtel Connection in your organization? Offers Quality of Service [ ] Speed & Safety Brand Name [ ] [ ]
70

[ ]

7. Rate the following Particulars Poor Speed Safety Security Usage Experience After Purchase Service (warranty, repair, customer service) 8. The process of getting your problem resolved was: Very poor [ ] poor [ ] Fair [ ] very good [ ] Excellent [ ] Fair Good Very Good Excellent

9. Compared to other product in this category, would you say that our product is. Much better [ ] somewhat better [ ] same [ ] worse [ ]

10. Overall, I rate Airtel Broadband. Very poor [ ] Fair [ ] good [ ] very good [ ] Excellent [ ]

11. Do you have any suggestion in your Airtel Connections? .............................................................................................. .............................................................................................
71

............................................................................................

72