A PROJECT REPORT ON
Bharti Tele-Ventures is one of India's leading private sector providers of telecommunications services based on an aggregate of 28,692627 customers as on September 30, 2006, consisting of 27,061,349 GSM mobile and 1,631,278 broadband & telephone customers The businesses at Bharti Tele-Ventures have been structured into three individual strategic units (SBU’s) – 1) mobile services 2) broadband and telephone services (B&T) 3) enterprise services The Mobile services group provides GSM mobile services across India in 23 telecom circles, while B&T business group provides broadband & telephone services in 94 cities. The Enterprise Services group has two sub-units – carriers (long distance services) and services top corporates. All these services are provided under the Airtel brand. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 16 states covering all four metros. It has over 12 million satisfied customers Bharti Enterprises has successfully focused its strategy on telecom while straddling diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to becoming the largest manufacturer and exporter of world class telecom terminals under its 'Beetel' brand, Bharti has created a significant position for itself in the global telecommunications sector. Bharti
Tele-Ventures is today acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 12 million customers across the length and breadth of India. While a joint venture with TeleTech Inc., USA marked Bharti’s successful foray into the Customer Management Services business, Bharti Enterprises’ dynamic diversification has continued with the company venturing into telecom software development. Recently, Bharti has successfully launched an international venture with EL Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri products exclusively to markets in Europe and USA
"What other operators have achieved in one to two years, Bharti has done in just over a month. In July 2002, one out of every two people buying a mobile across India chose AirTel. We are truly proud to be spearheading the mobile revolution in the country." - Sunil Bharti Mittal, Chairman, Bharti Tele-Ventures in 2002
BY 2010 AIRTEL WILL BE THE MOST ADMIRED BRAND IN INDIA: LOVED BY MORE CUSTOMERS. TARGETED BY TOP TALENT. BENCHMARKED BY MORE BUSINESS.
launched pre-paid cellular services in the late 1990s. Bharti (Airtel) and Essar (Essar) and both these companies offered only post-paid services. At that time.AIRTEL
Airtel comes to you from Bharti Tele-Ventures Limited . This was because the cellular service providers offered only post-paid cellular services. Although the cellular services market in India grew during the late 1990s (as the number of players increased and tariffs and handset prices came down significantly) the growth was rather marginal.
. which were targeted only at the premium segment). the cellular services market registered limited growth. there were only two major private players. and government regulations were also responsible for the slow growth of cellular phone services in India.a part of the biggest private integrated telecom conglomerate. with an all India footprint covering all 23 telecom circles of the country. AirTel has redefined the business through marketing innovations. Following this realization. introduction of new generation value added services and the highest standard of customer care. Cellular telephony was introduced in India during the early 1990s. continuous technological up gradation of the network. low standard of living. Other factors such as lack of awareness among people. the major cellular service providers in India. Bharti Enterprises. Bharti is the leading cellular service provider. It has over 12 million satisfied customers. A consortium of giants in the telecommunication business. which were still perceived to be very costly as compared to landline communications. Moreover. In it's six years of pursuit of greater customer satisfaction. Initially. The main purpose of these services was to target customers from all sections of society (unlike post-paid services. lack of infrastructural facilities. these services were mostly restricted to the metros.
To be globally
admired for telecom services that delight customers.
free service delivery
.We will meet global standards for telecom services that delight customers through: • Customer Service Focus
• Empowered Employees
• Cost Efficiency
• Unified Messaging Solutions
• Innovative products and services
Raju Pulak Chandan Prasad Bashir Abdullah Currimjee Gavin Darby Syeda Imam Ajay Lal
. is an Executive Director and the number of Independent Directors on the Board is 50% of the total Board strength. The Chairman and Managing Director. Kumar Kurt Hellstorm Donald Cameron Paul O’Sullivan Professor V. experience and expertise required to take decisions. its promoters or its management.S. which are in the best interest of the Company. The independence of a Director is determined on the basis that such director does not have any material pecuniary relationship with the Company. Mr.
The composition of the Board is as under: Sunil Bharti Mittal Rajan Bharti Mittal Akhil Gupta Rakesh Bharti Mittal Chua Sock Koong N. which may affect the independence of the judgment of a Director. which consists of three Executive and fifteen Non-Executive Directors.Board of Directors
The Board of Directors of the Company has an optimum mix of Executive and Non-Executive Directors. The Board members possess requisite skills. Sunil Bharti Mittal.
First to introduce push button phone in India. UK etc with 284 partner networks.
BHARTI announces aggrement with VODAFONE marking the entry of the World's Largest Telecom Operator into India
First to expand it's network with the installation for second mobile switching center in April.
First to provide roaming facility in USA. York Chye Chang Paul Donovan Arun Bharat Ram
• • • • • •
First to launch Cellular service on November 1995.
First operator to revolutionaries the concept of retailing with the inauguration of AirTel Connect (exclusive showrooms) in 1995. 1997 and the first to introduce the Intelligent Network Platform First to provide Roaming to its subscribers by forming an association called World 1 Network. Enjoy the mobile roaming across 38 partner networks & above 700 cities Moreover roam across international destinations in 119 countries including USA.
Only India's leading mobile service offers you the truly 'freedom-packed' Prepaid!
It is also the first company to export its products to the USA.• • • •
Bharti Enterprises and AXA Asia Pacific Holdings Limited announce Partnership for a life insurance joint venture in India
Airtel Launches future factory .Centres of Innovation to Incubate Pioneering Mobile Applications
16 states. 600 million people.
having attracted Asia’s best – SingTel.
• Bharti set to gain global leadership in the telecom sector
. and now world’s best – Vodafone. to unassailable leadership position in India
• The largest single foreign investment ever in the history of India • The largest investment in the Indian telecom sector • Bharti establishes its supremacy in the Indian telecom market. 6.) to acquire around 10% in Bharti Tele-Ventures Ltd.5 bn.700 crores (approx.BHARTI announces agreement with VODAFONE marking the entry of the World's Largest Telecom Operator into India
• Vodafone to invest approximately Rs. SingTel and Vodafone to take Bharti TeleVentures Ltd.
• Bharti Enterprises.
Awards for the year 2006-2007
BHARTI AIRTEL DRAWS TOP HONORS AT THE MIS ASIA IT EXCELLENCE AWARDS 2006
BHARTI AIRTEL AMONG THE TOP 10 BEST PERFORMING COMPANIES IN THE WORLD ACCORDING TO BUSINESSWEEK IT 100 LIST.
.• Bharti Enterprises continues to hold shareholding and management
control in Bharti Tele-Ventures.
Expressing and communicating are perhaps two of the most basic emotions.and connect at a deeper level. differentiating merely on network. the market has grown considerably. "In this context. expands on this. AirTel enables you to make your point in the most expressive way. We needed a strong differentiator in an increasingly commoditized and crowded market. Bharti TeleVentures.
BHARTI TELE-VENTURES IS THE “BEST INDIAN CARRIER” AT THE TELECOM ASIA AWARDS 2006. chief marketing officer. when you need to be heard. We found this differentiator in a core human truth that defines our category . accompanied by much higher competitive intensity.•
SUNIL BHARTI MITTAL IS THE “CEO OF THE YEAR” AT THE FROST AND SULLIVAN ASIA PACIFIC AWARDS 2006 AND BHARTI AIRTEL BAGS “WIRELESS SERVICE PROVIDER OF THE YEAR” AND “COMPETITVE SERVICE PROVIDER OF THE YEAR”.
AirTel: Appropriating the value of 'expression'
Over the last couple of years.which is that there are moments when you need to make your point. anywhere.which are prerequisites in any case .' We believe 'Express yourself' allows us to connect at a deeper
. with deeper penetration and wider usage of voice and data services. coverage and SMS is just not enough. You need to go beyond all the rational identifiers . The campaign is towards owning this through 'Express yourself. anytime." Atul Bindal.
This assumes significance when viewed in the light of the company's pre. However. "Brand AirTel is a category leader straddling completely different market segments such as consumer. That's what makes a good campaign idea. doubts were being expressed regarding the ability of Bharti's marketing initiatives to help Magic retain its 'Magic' in the future. Magic led the market. conceived the campaign." observes Rediff's Prashant Godbole. who.and post-paid communication. This is just the proverbial tip of the iceberg. in the past. as well as different voice. which. Bharti claimed that its strategies were one of the most ambitious experiments ever in the Indian pre-paid cellular telephony market. had been treated very differently." For AirTel. the challenge also lay in presenting a unified 'face' to the consumer." he informs. given the increasing competitive pressure. along with creative partner Zarvan Patel. "'Express yourself' enables the brand to unify and connect across the entire base of our existing and prospective customers. Patel also credits his creative team for "fleshing out the idea". was being driven in two different dimensions.
In October 2002." says Bindal. with 30% of the market share. as a result. Brand image. "The moment you have as broad a canvas as 'Express yourself'.
.level and create a long-term platform for the brand. business and corporate. data and payment platforms." One of the most obvious benefits of owning a property such as 'candid expression' (and 'Express yourself') is the expansive nature of the thought. Patel adds. it becomes easy for anyone working on the brand to come up with new ideas and executions. "We will be taking the idea forward in many different ways in the forthcoming work.
Hence Bharti ventured in the broadband market. The current offerings by Airtel does not really enthuse a potential customer who is looking at sustained data transfer. Airtel has so far focused only in those areas where it perceives that a huge market is present. It is the classic case of having something better than nothing. It seems that their fancily paid MBAs haven’t really understood the success of BSNL who focused on the B and C class cities where it has drawn unparalleled support despite the lousy customer experiences. I still hold that their thrust should be in smaller towns and cities where BSNL would ultimately usurp their potential customer base.AIRTEL BROADBAND
Bharti Televentures is the fixed line operator business of Airtel. the main contention in the broadband market is the price offering which includes the bandwidth costs as well as the cost of laying down the copper wire. However. In the recent branding exercise. This is clear to the operators who have belatedly realized the implications for having a pie in all the segments of telecommunications.
. in the mentality of the profit making exercise. Typically. This is because of the absence of any other operator. Data is the next driver for growth. all the services have been offered under the Airtel brand. However.
The mobile services group provides GSM mobile services across India in 23 telecom circles.Add to the lousy customer care that Airtel is slowly perfecting. while the B&T business group provides broadband & telephone services in 90 cities. and is India's leading provider of telecommunications services. The Enterprise services group has two subunits . The so-called Tech engineers have often been unable to help a customer who is facing issues with the connectivity.
AIRTEL’s ENTERPRISE SERVICES
The company is a part of Bharti Enterprises. All these services are provided under the Airtel brand.mobile services. I have read first person accounts for the same.carriers (long distance services) and services to corporates. broadband & telephone services (B&T) & enterprise services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) . it is staffed with people who usually land up in their jobs with little idea of their job profile. Our Services: Voice Services Mobile Services Satellite Services Managed Data and Internet Services Managed e-Data Services
adjusts speech levels in both directions and does away with low or distorted speech so that every word of your's can be heard clearly.AirTel launches VQE (Voice Quality Enhancer) for the first time in Kolkata. world leaders in Voice Quality technology. VQE is a revolutionary new system that spectrally reduces background noise. So go ahead. Some of the prominent GSM operators using Tellabs solution in the world are SingTel. The Tellabs noise reduction technology removes high background noise from the wireless side of the call thus delivering near wireline clear call quality on mobile phones. Express yourself and feel the difference on Kolkata's only Non-Stop 2. The Tellabs 3000 series of voice-quality enhancement echo technology also eliminates the complexity of acoustic echo generated by digital mobiles and hands free kits. BT Cell etc. The VQE technology has been sourced from Tellabs of USA. Bell South. wherever you may be speaking from. It eliminates acoustic echo.5G Network
Introducing VQE (Voice Quality Enhancer) for the first time in Kolkata.
6 per minutes
646 Calling charges
VAS SMS Charges
Rs. download ringtones etc Content offered by Automatic media companies like only for new Indiatimes. For instance. 2. These call numbers are available in the phone book Automatic download exclusive only for new contents from Airtel's acquisitions WAP site
Rs.) POSTPAID CHARGES (Rs.) Rs.Rs 600 per .AIRTEL SERVVICES
SERVICE NAME Calling Line Identification Presentation (CLIP) TYPE OF SERVICE DESCRIPTION PREPAID CHARGES (Rs. 6 per minutes Rs. 25
Automatic Displays the callers only for new number on your mobile acquisitions phone screen Users can call to get certain information and service. Rediff. acquisitions Yahoo fall into this category Rs.Rs 600 per exclusive contents from acquisitions month month Airtel's WAP site Users can call into this Automatic voice recognition only for new service and listen to acquisitions jokes.40 per minute
Rs. movie gossips. 2 per minute
Per content download
Per content download
GPRS & Masala
Access internet on the Automatic GPRS Charges GPRS Charges move and download only for new . only for new Dial 131 for Railway acquisitions info. 3 per
. Automatic Dial 604 for Infotel.
1. 2006.000 crores.600 crores. 1.
Bharti Airtel to Observe Silent period from October 1.
Sunil Bharti Mittal receives ‘The Honorary Fellowship’ from IETE.
Notice of postal ballot for seeking consent of the shareholders on scheme of amalgamation of Satcom Broadband Equipments Limited and Bharti Broadband Limited with Bharti Airtel Limited.
Bharti Airtel is amongst India’s Most Admired Knowledge enterprises in 2006.
Bharti Airtel inks USD 400 million network expansion contract with NOKIA
• • • • •
Bharti Airtel limited: Q2 cash profit exceeds Rs. PBT crosses Rs.•
on the other hand. Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. relied heavily on its creative media advertising sans celebrities. Bharat Sanchar Nigam Limited (BSNL). service providers took new initiatives to woo customers. As competition in the telecom arena intensified. Idea Cellular limited (Idea) and Reliance India Mobile (RIM) (Refer Exhibit I). BSNL. discount coupons. business solutions and talk time schemes. loyalty rewards. BSNL could cover rural areas. Reliance was another player that cashed on its innovative promotional strategies. By 2005.PROMOTIONAL STRATEGY
After the liberalization of the Indian Telecom Sector in 1994. (Refer Exhibit II). and this helped it increase its subscriber base. Idea. Hutchinson-Essar limited (Hutch). which included celebrity endorsements and attractive talk time schemes. All the players except RIM offered services based on the Global System for Mobile (GSM) technology. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market. relying primarily on its creative advertising for the promotion of its brand. Hutch implemented the celebrity endorsement strategy partially. Being a state owned player. Prominent among these were .
. the Indian cellular market witnessed a surge in cellular services. The most important consumer segments in the cellular industry were the youth segment and the business class segment. The youth segment was the largest and fastest growing segment and was therefore targeted most heavily by cellular service providers.celebrity endorsements. attracted the consumer through its low cost schemes. RIM provided services based on Code Division Multiple Access (CDMA) technology as well as GSM. there were a total of 12 players in the market with the five major players being Bharti Tele-Ventures Limited (Bharti).
seem to be doing their own homework on this brand of advertising. Marketing professionals like Samsika Marketing Consultants’ managing director Jagdeep Kapoor point to the usage of an “audio celebrity” as something that is significant. talking brand ambassador. has given AirTel a chance to enter the “mind of the user” irrespective of which service he opts for.
.” he explains. Cellular users have been “forwarding” the tune to one another. he explains. Rivals. one advertising professional working with a rival service provider opines that the tune is “transient” and not likely to have any long term impact as a brand building tool. The commercial which is currently on air has a beat which also doubles up as a ringtone which is ostensibly available only to AirTel users. 2002
Cellular service provider AirTel seems to have hit the right note with its new commercial starring musician A R Rahman. “The normal practice is to opt for film stars and sportsmen rather than an audio personality” he says. While none of them commented on AirTel’s strategy and its impact on their own subscriber base. Orange and Dolphin as well! “We did expect the tune to catch up but this has really exceeded our expectations.”
The ringtone which is also the jingle for AirTel’s TV commercial. It is not very clear what this means for the other cellular operators. Overall. though seemingly unfazed by the phenomenon.” admits Bharti Cellular’s chief marketing officer (western region) Pratik Pota. is proving to be a potent advertising tool for the company. it is a great advertising product for AirTel and works like a “walking. which according to Mr Pota. But the interesting part is that the ringtone is being flaunted not just by AirTel customers but by customers of rival service providers like BPL. “It gives the user a chance to go back to the AirTel product and acts as a strong reminder medium.RAHMAN TUNE CROSSES AIRTEL’S EXCLUSIVITY BARRIER
the nature of reaction from competition remains unclear.
. He anticipates a situation where the new entrant (AirTel) will continue to be more aggressive. Says Mr Kapoor. “Competition will not do well to adopt a knee jerk reaction and will have to come out with advertising that is well thought out” explains Mr Kapoor. AirTel has had to find ways of cutting through the clutter.” Explaining that the usage of an audio celebrity was more “strategic than tactical”.” AirTel will have try to find ways to attract new customers and convert the existing ones.Being the latest entrant in the Mumbai circle. While Mr Pota highlights the fact that the usage of the tune by other operators means “free advertising” for AirTel and the users having a positive disposition towards the product. he adds that non-AirTel users will have the AirTel “brand experience” inspite of not using the service.
Bharti plans to launch a multimedia campaign targetting its service at the mass market. Indian captain Saurav Ganguly had done so when Airtel launched its service in the eastern metropolis of Kolkata in 2001. among others. MRF. Both Tendulkar and King Khan already share the frame for soft drinks major PepsiCo India. Pepsi. Visa. The Master Blaster’s portfolio includes brands like Colgate Pamolive. “For mass connect. The leading brands endorsed by Khan include Hyundai. TVS. those in the advertising fraternity peg the signing rate for the three-year deal anywhere between Rs 8 crore and Rs 10 crore. Tendulkar is not the first cricketer to endorse Bharti’s Airtel brand. ESPN-STAR Sports.
.” says a senior company executive. Pepsi. Clinic All Clear. Shah Rukh and Sachin are the best bet as brand endorsers. the idea of roping in Tendulkar is in line with the group’s strategy to connect to the mass market through celeb endorsers from movies. Both Sachin and Shah Rukh are two of the most sought after celeb endorsers in the country. Palio. Adiddas and Britannia.TENDULKAR & SHAHRUKH. According to company executives. Airtel. Tag Huer. Bagpiper and Videocon. cricket and music. Boost. Though company executives were mum on the value of the Tendulkar deal. with the former edging out the latter in the celeb endorsement race.
my aim is to study the Advertising Effectiveness of AIRTEL Cellular service.
. In other words.OBJECTIVE
The objective of my project report is to study the advertising strategy of AIRTEL Cellular service and its effect on mobile users existing and who are going to use mobile service in future.
Data is collected from both the Primary sources i. newspapers and templates from AIRTEL distributions centers and AIRTEL Customer Care. Primary sources: The primary source of data collection is through questionnaire. The questionnaires are distributed among 35 peoples and their view is recorded and used in analyzing the data Secondary sources : The secondary sources includes online sites.
. questionnaire and also from Secondary sources.
People know about AIRTEL cellular service through 30 % Friends 70% Advertisements 5% Other Sources
friends advertisements other sources
Feature of AIRTEL forced people to use AIRTEL is 35% Advertisements 35%Goodwill 20% Connectivity 10%Schemes
advertisement connectivity schemes goodwill
People’s first choice of cellular service when they want to use mobile phone AIRTEL 45% HUTCH 30% IDEA 8% RELIANCE 10% TATA INDICOM 5% OTHERS 2%
AIRTEL HUTCH TATA INDICOM RELIANCE IDEA OTHERS
ADVERTISEMENTS CONNECTIVITY SCHEMES
.Feature of AIRTEL is better than the people’s previous cellular service.
70% More than 70% : : : 15% 25% 60%
0-30 30-70 70-100
.AIRTEL users in people’s phone book Less than 30% 30% .
Type of advertisement mostly like by people in AIRTEL is Audio Visual Print Audio : : : 85% 2% 13%
Audio Visual Print Audio
R.R.Celebrity liked by people very much in AIRTEL Sachin : 55% Shahrukh : 38% Kareena : 2% A. Rehman : 5%
SACHIN SHAHRUKH KAREENA A. REHMAAN
People take benefits of schemes offered by AIRTEL YES NO CAN’T SAY : : : 85% 13% 2%
YES NO CAN’T SAY
People like most in AIRTEL is NOKIA + AIRTEL AIRTEL MAGIC Postpaid services AIRTEL Broadband : : : : 86% 5% 8% 1%
NOKIA + AIRTEL AIRTEL MAGIC Postpaid services AIRTEL Broadband
Service liked by people most in AIRTEL is AIRTEL missed you service Ring tones Hello tunes : : : 63% 15% 22%
AIRTEL missed you service RINGTONES HELLOTUNES
LI’L CHAMPS YES NO : : 72% 28%
.People participate contest offered by AIRTEL like BID TO WIN.
Type of recharge cards liked by people More talk time More validity Both : : : 23% 15% 62%
More talktime More validity Both
AIRTEL is #1 in India Yes No : : 95% 5%
R. many new users buy Nokia sets and they get a free connection of AIRTEL. Other celebrities like Shahrukh Khan (bollywood) and Sachin Tendulkar (Cricket) has also contributed very much in AIRTEL. AIRTEL has adopted a very good strategy by providing a new connection with NOKIA who is market leader in mobile set. AIRTEL is successful in capturing the highest market share by adopting Celebrity Endorsement Strategy.
. A. Rehmaan’s tune for AIRTEL worked as free advertising for AIRTEL as another service user uses it too.CONCLUSION
The conclusion of my study is that AIRTEL’s Advertising has a major impact its users. People like its schemes very much .AIRTEL had created a very good image on the mind of the new users of cellular service.
AIRTEL should introduce cheaper recharge cards than the other because its competitor HUTCH had introduced it.RECOMMENDATIONS
By virtue of its connectivity and advertising strategy AIRTEL is successful in grabbing the highest market share in India. AIRTEL should sign more celebrities from cricket and bollywood. but there are still some recommendations from my study point of view is that AIRTEL needs to make its network service more stronger than other service providers to dominate the market in future too.
L. Sultan Chand and Sons. o WWW.IN o WWW. S. Varshney and
Dr. Dr.GOOGLE.L.2 Nov 2006)
o Marketing Management.COM NEWSPAPERS:
o Times of India (15 Oct 2006.CO.BIBLIOGRAPHY
ON-LINE WEBSITE : .
. R. Third Revised Edition. Gupta.AIRTEL.
Which was your first choice of cellular service when you want to use mobile phone? AIRTEL HUTCH IDEA RELIANCE TATA INDICOM OTHERS Connectivity Schemes
4. Which feature of AIRTEL is better than your previous cellular service? Advertisements Connectivity Schemes 5. How did you know about AIRTEL cellular service? Friends Advertisements Other Sources
2. How many AIRTEL users in your phone book?
NAME: …………………………………………… ADDRESS: …………………………………………… OCCUPATION: ……………………………………………. Which feature of AIRTEL forced you to used AIRTEL ? Advertisements Goodwill 3. CELLULAR SERVICE USED:……………………………………………. If AIRTEL than proceed further 1.
Which service you like most in AIRTEL? AIRTEL missed you service Free Hello tunes
11. Which celebrity you like very much in AIRTEL? Sachin Shahrukh Kareena A. Which type of advertisement you most like in AIRTEL? Audio Visual Print Audio
7.According to you is AIRTEL is #1 in India? Yes No
.e. Post paid) 13.Do you participate contest offered by AIRTEL like KBC-2 & Indion Idol-2? YES NO 12.70%
More than 70%
6. Which you like most in AIRTEL? NOKIA + AIRTEL Postpaid services AIRTEL MAGIC AIRTEL Broadband Free Ringtones
10. Have you take benefits of any scheme offered by AIRTEL? YES NO 9. Rehman 8. R.Less than 30%
30% .Which type of recharge cards you like most? More talktime More validity Both (i.