Comparative analysis of Marketing Strategies of Vodafone & Airtel
Prof. Bharat Bhushan (Submitted in fulfillment of the requirement for the degree) MASTER OF BUSINESS ADMINISTRATION

(Marketing) 2008-2010

Raman Kumar MBA- 4th SEM. Roll No.-80907317092



I Raman Kumar sincerely thankful to all those people who have been giving me any kind of assistance in the making of this project report. I express my gratitude to Mr . Bhart Bhushan, w ho has through his vast experience and knowledge has been able to guide me, both ably and successfully towards the completion of the project.. I would hereby, make most of the opportunity by expressing my sincerest thanks to all my faculties w hose teachings gave me conceptual understanding and clarity of comprehension, which ultimately made my job more easy. Cr edit also goes to all my friends whose encouragement kept me in good stead. Their continuous support has given me the strength and confidence to complete the project without any difficulty . Las t of all but not the least I would like to acknowledge my gratitude to the respondents without whom this survey would have been incomplete. I am also thankful to authority of Airtel & Vodafone for providing me the information.

(Raman kumar)


I Raman Kumar, student of Dr. I.T.Businees school Banur hereby solemnly and affirmly declare that the project of comparative study between Airtel and Vodafone has been prepared by me. The findings and analysis made in the project is exclusively the extensive study made in the form of data collected and its systematic analysis to make the project a comprehensive one. The data is not copied and will only be used for academic purpose.


(Marketing) is a course. These provide an opportunity to the students to improve their understanding of the studies. This practical experience helps the students to view the real business world closely which in turn widely influences their conceptions & perceptions.A. 4 . M. Major project is an integral part of Master of Business Administrator (MBA) course & it aims at providing a first hand experience of the industry to the students.B. which combines both its theory and application as its content of study in the field of Marketing and commerce as a part of this course This project is the result of my major project based on strategies used by two company.PREFACE Education becomes more meaningful when its theoretical aspects are combined with practical experience.

This report has not been submitted to any other unit or institution for a degree and diploma.CERTIFICATE This is to certify that this project report titled ”Comparison Between Airtel & Vodafone Based on their Strategic Performs. IT Business School in partial fulfillment of the degree of Master of Business Administrator (MBA) is a bonafide piece of work on major project report by him under my guidance & supervision. Mr. IT Business School Banur Dated……………… 5 . The assistant & help received by the candidate during the course of investigation have been acknowledging. Bhart Bhushan Lecturer Dr.” being submitted by Raman Kumar to Dr.

.. LIMITATION ………………………………………………….55 11.NEED OF STUDY……………………………………………………7 2.... DATA ANALYSIS AND INTERPERTATION ……………………48 10........ A BRIEF HISTORY OF TELE SECTOR IN INDIA ………………..... REASEARCH METHODOLOGY ………………………………. SUGGESTION ………………………………………………… …61 13......8 3..... SWOT ANALIYSIS ………………………………………………............... OBJECTIVE OF STUDY ………………………………………................... BIBLOGRAPHY ………………………………………………….63 6 .. INTRODUCTION OF TOPIC ………………………………………19 5...........CONTENT PAGE 1. 9 4.. QUESTIONNAIRE ………………………………………………. CONCLUSION ……………………………………………………60 12.43 8.34 6..46 9.............. COMPARISON OF MARKETING STRATEGIES BETWEEN AIRTEL & VODAFONE…... 38 7.......... CUSTEMOR RESPONSE TOWARDS QUESTIONNAIRE….62 14.

1.To identify the difference between market performance of Airtel industry and Vodafone. 2. To study the market of Airtel Industry and Vodafone on big scale telecommunication sector 3. To compare various parameters of marketing strategies, manufacturing process, technology adopted production policy, advertising collaboration, export scenario, future prospect for the two companies and government policies. 4.To study the level of customer satisfaction in Airtel & Vodafone. 5.To study customer buying behavior and factors which influence the purchase decision process. 6. To study consumer preferences 7. To study the consumer trend in telecommunication sector 8. To study competitive marketing strategies adopted by Airtel and Vodafone



Every organization has to achieve its organization goals. For this it is very essential for an organization to know about the view of consumers and their competitive products. This survey research may be also aimed as to estimate potential buyer for the product. The objective of the study is as under:1. To identify the difference between market performance of Airtel industry and Vodafone. 2. To study the market of Airtel Industry and Vodafone on big scale telecommunication sector. 3. To compare various parameters of marketing strategies, manufacturing process technology adopted production policy, advertising, collaboration, export scenario, future prospect f or the tw o companies and government policies. 4. To study customer buying behavior and influence the purchase decision process. factors which

5. To know how the company has been successful in encountering the aggressive marketing strategies of competitors.


A brief history of Tele sector in India
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 exports. Key to achieving these goals was a world-class telecom infrastructure. In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and Kolkata) 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 body at that time — the Department of Telecommunications (DOT) — allocated 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 Kolkata 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 West Bengal and Assam had only one bidder each. 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 January 1997. The government decided to set up TRAI to separate regulatory 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 financial burden on the operators, diverting funds away from network development and enhancements. As a result, by1999 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 policy, the old fixed- licensing regime was to be replaced by a revenue- sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.



while businesses with weak promoters continuing to languish .4 years till the New Telecom Policy1999 was announced. pass through income. Inadequately funded businesses / weak and fragmented promoters. Interconnect terms since rationalized. Regulatory authority not in place Telecom Regulatory Authority of India (TRAI) firmly in place. and its role being accepted by all operators.spate of acquisitions / mergers. with operations and policy making roles vested in different bodies. 10 . Businesses that have since been adequately funded growing at over 60% per annum. spectrum availability and allocation and the like remained unresolved for long periods. Some of these roadblocks / current position is tabulated below: ROADBLOCKS CURRENT POSITION High license fees Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment of license fees. Issues relating to unfavorable interconnect terms for private operators.Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by several problems for 3 . spectrum availability cleared with vacation of frequencies for usage by GSM operators. risks on pass through income to DOT / BHARTI Mahanagar Telecom Nigam Ltd. Deptt of Telecommunications (DOT) restructured.) resolved to the satisfaction of all parties with changes in methodology / revenue sharing. with 4/5 major groups emerging in the last one/two years. intra circle long distance allowed. intra circle long distance.

In recent years. In 1999 alone. not everything is rosy. The cellular penetration rate is still very low at 0. Despite the recent gains of the cellular industry. Inadequate growth of market / subscribers Roadblocks spelt out earlier resulted in low market / subscriber growth. In 2000.Problems in Financial closures due to: Licensing tenure of 10 years Large upfront cash requirements from promoters due to heavy license fee burden in initial stages of deployment Asset based financing approach by Indian Financial Institutions. 2. Telstra from Modi Telstra and both the Telecom Organization of Thailand and Jasmine International from JT Mobile. and both Shinawatra of Thailand 11 .paves the way for full control of businesses by foreign companies. project financing being considered by most financial institutions. but with corrective measures taken.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY The interconnection regime between cellular operators and fixed-line operators is still biased against the former. market / subscriber base expected to zoom.8 percent in a nation of over one billion people. many foreign companies had pulled out from their cellular joint ventures in India due to the difficult operating environment and bureaucracy. Telecom Malaysia sold its stake in Usha Martin Telecom. Swisscom pulled out from Sterling Cellular. Licensing tenure increased from 10 to 20 years Large upfront cash requirements for license fee payments mitigated with migration to sharing mode allowing promoters to deploy more capital for capital expenditure. and change of partners allowed as a matter of routine allowin ease of entry / exit . Foreign ownership / change of partner limitations ownership norms clarified.

First Pacific's (based in Hong Kong) continued commitment to Escotel is uncertain. There will be tremendous competitive pressure. In June 2001 British Telecom exited from Bharti Cellular. 1 bidder with eight new licenses. and Hong Kongbased Distacom is seeking to sell its stake in Spice Communications. giving competition to the lone operator there. Bharti is likely to merge all its cellular companies into one entity. and Vodafone and Idea cellular with one each. Communications renamed Bharti Mobinet (August 2000). Hong Kong-based Hutchison Whampoa. via Hutchison Telecommunications (HK). the third cellular operator for Delhi and Mumbai. Bell South International has also indicated its intention to pull out from Skycell Communications. started services in March 2001. Once BSNL rolls out its service. this has been postponed until after mid October. Spice Communications. BSNL as the third nationwide cellular operator. which will result in lower tariffs. Bharti and Hutchison have already commenced operations in all the circles while Idea is set to launch in Delhi. and the former is reviewing various options. Usha Martin Telecom (mid-2000) and Fascel (September 2000). Hutchison with three. The string of sell-outs notwithstanding. A nationwide launch was scheduled for 2 October2002. Not to be outdone. Kotak Mahindra Finance. Through a partnership with local company. thus circumventing the 49 percent limit on foreign ownership in Indian cellular operators. Bharti emerged as the No.3 billion to bag the licenses for the fourth operator slots in four metros and 13 circles. most telecom circles will have four cellular operators. launched services in Kolkatta and Bihar in January 2002. Future rate cuts are 12 . Hutchison Whampoa is also the controlling shareholder of Hutchison Max Telecom. there has been a merger and acquisition wave sweeping across the Indian cellular industry in recent years. Not to be outdone. Bharti Enterprises — another major cellular player — acquired.and Bezeq exited from Fascel. Five companies together bid Rs16. This was followed by Tamil Nadu in July 2002. However. Escotel and Vodafone have not made any headway BHARTI. acquired major stakes in Sterling Cellular (December1999). Going forward. Bharti Enterprises — another major cellular player — acquired Telecom. followed by Escotel with four. Hutchison Whampoa practically controls Fascel and Usha Martin Telecom. Bharti also acquired the Punjab license of Essar and started operations.

The issue was oversubscribed by more than 2. However. there is caution on their part to launch the service. only BPL Mobile has launched commercial general packet radio service(GPRS) in Mumbai. cinemas and music shops. basic and cellular services. This will be used to fuel its investment in long-distance. the company got a very good response from the primary market. Virgin mobile comes in Indian Territory with the alliance of TATA telecommunication Maharashtra in 2008. Cellular operators like Bharti. Others offer special privileges in retail outlets. While both Bharti and Idea have GPRS-enabled networks. which will drive demand together with falling handset prices and the introduction of prepaid services. The total size of the IPO was 185 million shares at a floor price of R s10. Orange in Mumbai offers "Orange Holidays" and"Orange Monsoon Offers" at very attractive rates and added benefits like discounts on airfare. With hardly any applications. As of October 2002. 13 . the success of GPRS remains a question. among others. cellular operators are actively promoting their brand and service portfolio through highvisibility advertising and promotional campaigns. Bharti came out with its long-awaited initial public offering (IPO) in January 2002. Mitsubishi a Japanese telecomm services (MTS) company comes in India in 2009 and take over Building visibility and awareness Deviating from competing on the price platform. Orange and BPL Mobile have been advertising aggressively on hoardings and kiosks. Public transport like the city rail system and cabs are used widely to carry the message of mobility.3 billion. Leveraging on the success of its cellular service. Customer-focused activities are gaining traction among cellular operators with the establishment of longstanding consumer benefit programs.5 timesnetting Rs8. In 2005 Hutchison Essar an Indian and hongkong telecommunication alliance was taken over by the United Kingdom based telecommunication company name Vodafone telecomm services and comes with the name of Vodafone essar. large-scale uptake remains elusive. In the midst of declining interest in technology stocks.expected. food and beverages.

limiting access to select numbers and diverting calls to one single number. especially among enterprises both in the service as well as number. Premium automakers are also installing a global system for mobile communications inside a vehicle to help trace lost vehicles and track down stolen cars. as operators realize that offering basic voice and Short Message Service (SMS) will get them the numbers but not the margins. customer acquisition and the top line have been the focus. especially among enterprises both in the service as well as the fast-moving consumer goods (FMCG) segment that have a large field force and need to provide regular updates on inventory status. Broadcasting services are also quite popular. • The implementation of enhanced networks like 2. Group SMS is quite popular. Cost-centered solutions like closed user group (CUG). Group SMS is quite popular. This is an opportunity to 14 . some are now seriously looking at the enterprise segment for provisioning superior services. especially among fast food centers that have a central number. Group SMS is quite popular. However. Few operators have concentrated on offering differentiated services for businesses. accurate route planning. discount schemes and movement of goods from warehouse to the retail outlet. Bharti is in the process of introducing a facility to fleet management companies so that they can improve the efficiency of trucks or buses by tracking movement and ensuring higher-use.Enterprise mobile applications — promising revenue stream All along. especially among enterprises both in the service as well as number. Banks too find bulk SMS service very useful to forward transactional alerts to their customers. forcing operators to constantly focus on differentiations to maintain their lead. 2. Calls can be barred. value-adds like unified messaging and instant alerts are being offered.5G will enable operators to offer data services. Corporations can choose enhanced services like user-defined call routing to prevent misuse.3 FUTURE TRENDS AND DEVELOPMENT • There will be more competition. A variety of mobile applications are finding takers among the enterprise segment.

signing up with a national operator is advantageou • Limited mobility wireless in local-loop services (by fixed network service providers) will be a disadvantage for cellular operators in the short term. operators need to streamline their customer relation activities and adopt aggressive subscriber acquisition and retention strategies 2. Year Event 1851 First telephones in India 1943 Nationalization of telephone companies 1985 DOT was created 1986 Creation of BHARTI and VSNL 1991 Telecom equipment liberalized 1994 Licenses for paging 15 . thus there is less chance of a cartel being formed. • The entry of state-run operators like BSNL and BHARTI means that prices will no longer be controlled. the better it is for businesses. The next major policy document. Consequently.customize and differentiate better. a consequence of the on going process of liberalization. On the roaming front.4 REGULATORY ISSUES The operations of this sector are determined as under the Indian Telegraph Act of 1885. was National Telecom Policy of 1994. A document buried in the sands of time. which was produced. • Network coverage in terms of geographic spread and quality of coverage is crucial especially for the business subscriberThe bigger the service provider's national presence.

DoT/ BHARTI have the option to become the third cellular operator in future. Mumbai falls in Maharashtra circle and Delhi in itself a circle. and a PCO pop of 500. has not been met. Even liberalization policies were not implemented properly. which was broadening the reach of telephony in India. The targets in quantifiable terms were installation of 9. wide coverage (a phone in every village). It was also affected by the resource crunch. it sought to achieve the impossible in finite time like improve quality of service and its availability. BOOT and BOLT was not used at all. which laid out broad policy guidelines rather than a series of action points. The regulator TRAI was set up after delays and confusion and even after its creation DoT continued to fight with it in courts. Government did not achieve most of its stated targets. etc. The basic theme. Like other policies.1994 Telecom policy announced September 1994 Guidelines for private sector participation in basic services November 1994 Cellular licenses issued for metros December 1994 Tenders for cellular licenses in 19 cities apart from 4 metros January 1995 Tenders for 2nd operator in basic services apart from DOT on circle basis August 1995 VSNL launches Internet services January 1996 TRAI formed November 1998 Internet policy announced The National Telecom Policy of 1994 document. The basic premise on which competition has been introduced is that every circle will have one private operator apart from DoT/ BHARTI for basic and two operators for cellular. at reasonable rates. To facilitate licensing. the nation was divided into 20 circles(akin to a state) for basic and 21 circles for cellular telephony. telephone on demand by 1997. 16 . The intention.5mn additional lines. and financing options like BOT. The Eighth Plan had also allowed private operators in value added services. The major policy direction it showed was to allow private sector entry in both basic and value added services.

Basic services were opened to private participation in 1994 by dividing the country into 21 telecom Circles and allowing one private operator per Circle to compete with DOT. • The date during which questionnaires were filled. • Targeted geographic area of Delhi/ NCR. Who are using GSM technology. Scope of the study • To conduct this research the target population was the mobile users.though noble failed to achieve its goals because of improper implementation. the economic costs are still borne by the end user. which need to be implemented. Value-added services (including cellular services) were thrown open to private sector participation in 1992. • Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given. the questionnaire was a combination of both open ended and closed ended questions. Interviews with the managers of GSM service providers were also conducted. Sources of secondary data # Internet # Magazines # Journals # Bharti Circulars Store 17 . • To these 50 people a questionnaire was given. A new Policy for Internet Service Policy Providers (ISPs) was announced in 1998 allowing independent service providers to enter the sector ending the earlier monopoly of VSNL. • Some dealers were also interviewed to know their prospective. Telecom equipment manufacturing was completely deregulated in 1991. The telecom sector has witnessed some fundamental structural and institutional reforms in the past decade. An independent telecom regulatory Authority of India was set up in 1997. Reorganization of DOT. separating policymaking function and service provision and corporatization of DOT's operational network are two major institutional reforms. Sample size of 50 persons was taken.

The private sector's contribution is also increasing rapidly. 18 .40 million by Jan 31 2008 Wire line Subscribers:.87 million in July 2007.The total number of telephone subscribers has reached 281.63%. The share of mobile phones (including WLL mobile) has overtaken the share of landlines with 62% in the total number of phones. Wireless Service:.The wireless segment saw a surge of 8.17 million in December2007. Network Expansion:.73 million with a decrease of 0. which continues to grow at a blistering pace. This pushed the total wireless subscribers base to 242.The wire line segment subscriber base stood at 39. The overall Teledensity has increased to 23. Currently more than 30 lakh phones are being added each month and it is targeted that by the end of 2008 the total number of phones may reach a level of350 million taking the tele-density to more than 30% which is currently at 24.62 million at the end of January 2008 as compared to 232. The rapid growth in the telecom sector can be attributed to the various pro-active and positive policy measures taken by the government as well as the dynamic and entrepreneurial spirit of the various telecom service providers both in private and public sector.63% in January 2008 as compared to 21.77 million subscribers last month compared to 8. increasing preference for mobile phones and higher contribution of private sector in the incremental growth have predominated the etlecom sector. Two striking features of this growth viz.20% in August2007.16 million at the end of January 2008.# Vodafone Store # Vodafone Ministore SYNOPSIS Telecom Sector In India Than 125 million telephones network is one of the largest communication networks in world. The telecom sector has shown impressive growth during the past decade.

The minimum effective charges for local calls have fallen considerably in recent months especially for cellular service. 1997 enacted on March 28. The goals and objectives of TRAI are focused towards providing a regulatory framework that facilitates achievement of the objectives of New Technology Policy (NTP) 1999. Telecom Regulatory Authority of India (TRAI): TR AI was established under the Telecom Regulatory Authority of India Act. The Teledensity is 24. technology. The report includes some of the key salient features of marketer end issues. registering an increase of 6%.Teledensity:.14 per cent in November 2006 Tariff Rebalancing Measures:. This report also contains the basic marketing strategies that are used by the Airtel Company of manufacturing process. export scenario. TRAI has endeavored to encourage greater corporation in the telecom sector together with better quality and affordable prices. production policy. Introduction Of the Topic The project is an extensive report on how the Airtel Company markets its strategies and how the company has been able in tackling the present tough competition and how it is scooping up by the allegations of the quality of its products. it is very essential to not 19 . future prospect and government policies.There has been a dramatic fall in the tariffs due to increased competition.63%at the end of January 2008 as compared to 18.The gross subscriber base reached 206. advertising. The long distance domestic as well as international charges have also fallen considerably. Increasing Role of Private Sector:.31% at the end of March 2007.1997.83 million at the end of March 2007.The private sector has played a significant role in the growth of telecom sector. collaboration. The share of private sector has risen to 85 per cent in December2007 from 64. In today’ s world of cutthroat fierce competition. The report begins with the history of the pr oducts and the introduction of the Airtel Company.

" These are the premise on which Bharti Enterprises has based its entire plan of action. and Emphasize on human resource development to achieve operational efficiencies. Bharti Airtel owns the Airtel brand and provides the following sevices under the brand name Airtel: Mobile Services (using GSM Technology). 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. Airtel is the largest cellular service provider in India in terms of number subscribers. Services and Leverage strengths of its strategic and financial partners. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world-class products and services. Vision "As we spread wings to expand our capabilities and explore new horizons. Internet Connectivity(DSL) and Leased Line). Hence forth to s ur vive in the market. in 1985. Long Distance Focus on satisfying and retaining customers by ensuring high level of customer satisfaction.only exist but also to excel in the market. Broadband& Telephone Services (Fixed line. ranging from being the first mobile service in Delhi. first private basic telephone service provider in 20 . the company not only needs to maximize its profit but also needs to satisfy its customers and should try to build upon from there AIRTEL Company profile AIRTEL is a brand of telecommunication services in India operated by Bharti Airtel. Enterprise Services (Telecommunications Consulting for corporates).Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airte. Today’s market is enormously more complex. With many firsts and innovations to its credit. Bharti has been a pioneering force in the telecom sector. It has presence in all 23 circles of the country and covers 71% of the current population (as of FY07.

it also has fixed-line operations in the states of Madhya Pradesh and Chhattisgarh. Gujarat. Mumbai.the country. In addition. it is also the first telecom company to export its products to the USA. Himachal Pradesh. Kerala. • The Company has developed the following strategies to achieve its strategic objective • Focus on maximizing revenues and margins. Kolkata. Madhya Pradesh circle Maharashtra circle. The Company is also implementing a submarine cable project connecting Chennai. Haryana.stop shop" solution. 21 . Bharti Tele-Ventures' strategic objective is “to capitalize on the growth opportunities that the Company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India with a focus on providing mobile services”. • Offer multiple telecommunications services to provide customers with a "one. Its services sector businesses include mobile operations in Andhra Pradesh. Punjab.21 million total customers – nearly2. Tamil Nadu and Uttar Pradesh (West) circle.88 million mobile and 334.Singapore for providing international bandwidth. Chennai. Apart from being the largest manufacturer of telephone instruments. first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Delhi Karnataka and Tamil Nadu and nationwide broadband and long distance networks. Bharti had approximately 3.000 fixed line customers. Haryana. Bharti has recently launched national long distance services by offering data transmission services and voice transmission services for calls originating and terminating on most of India's mobile networks. Delhi. Karnataka. Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. • Capture maximum telecommunications revenue potential with minimum geographical coverage.

Internet services and network solutions • Broadband services with DSL and Wi-Fi network Competitive Strengths Bharti Tele-Ventures believes that the following elements will contribute to the 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 a solid foundation to execute its business strategy • Nationwide Footprint . satisfaction.• Position itself to tap data transmission opportunities and offer advanced mobile data services. • Leverage strengths of its strategic and financial partners. • Focus on satisfying and retaining customers by ensuring high level of customer. Businesses • Bharti Tele-Ventures current businesses include • Mobile services • Fixed-line • National and international long distance services • VSAT. and…. • Focus on telecommunications to enable the Company to better anticipate industry trends and capitalize on new 22 .approximately 92% of India's total mobile subscribers resided in the Company's fifteen mobile circles. These 15 circles collectively accounted for approximately 56% of India's land mass.Emphasize on human resource development to achieve operational efficiencies.

International Finance Corporation. Brand Architecture: Bharti is working on a complex to three-layered branding architecture BHARTI AIRTEL (Cellular Operations) Distance) TOUCHTEL (Basic Service INDIA ONE (National Long Operations) Airtel . Asian Infrastructure Fund Group and New York Life Insurance. India One.telecommunications. Warburg Pincus.The brand for national long distance (NLD) telephony Though the costs of creating new brands are heavy but the group wants to create“distinct independent brands to address different customers and profiles”.The flagship brand for cellular operations all across the Indian country. Touchtel.The brand earmarked for basic service operations. and • The Company's strong relationships with international strategic and financial investors such as SingTel. Brand Strategy 23 .related business opportunities. • The strong brand name recognition and a reputation for offering high quality service to its customers. • Quality management team with vision and proven execution skills.

cellular telephony wasn’t a mass market by any means. distant and efficient. it had now become important for Bharti to“humanize” Airtel and use that relationship as a major differentiation. owning a cellular phone was expensive as tariff rates (at Rs 8 a minute) as well as instrument prices were steep — sometimes as much as buying a second-hand car. As tariffs started dropping. Bharti could have addressed the customer by rationally explaining to him the economic advantage of using a mobile phone. it became necessary for Airtel to appeal to a wider audience. But Sachdev says that such a strategy would not have worked for the simple reason that the value from using the phone at the time was not commensurate with the cost. And the various brandtracking exercises showed that despite all these good things. The idea was to become a badge value brand. Did it work? Repeated surveys following the launch showed that there were three core benefits that were clearly associated with the brand — leadership. So the Airtel “leadership series” campaign was launched showing successful men with their laptops and in their deluxe cars using the mobile phone. but they only took Airtel far enough to establish its presence in the market. The brand had become something like Lufthansa — cold and efficient. What they needed was to become Singapore Airlines. Sachdev and his team realized that in a business in which customer relationships were the core this could be a major weakness. In simple terms. we decided to address the sensory benefit it gave to the customer as the main selling tack. When the brand was launched seven years ago. These were valuable qualities. efficient but also human. there was no emotional dimension to the brand — it was perceived as cold. let’s first look at the brand building exercise associated with Airtel — a brand that had to be repositioned recently to address new needs in the market. For the average consumer.To understand the brand strategy. it meant Airtel was positioned as an inspirational brand that was meant for leaders. A change in tack was important because this was a time when the 24 .” he explains. “Instead of the value-proposition model. dynamism and performance. The reason with tariffs identical to competitor Vodafone telecomm and roughly the same level of service and schemes. for customers who stood out in a crowd.

Bharti was already the leading cellular subscriber in Delhi with a base of 3. again. a relationship game that needed to be reflected in the Airtel brand. Thus. family or colleagues. Says Sachdev: “The new campaign and positioning was designed to highlight the relationship angle and make the brand softer and more sensitive. Bharti has also understood that one common brand for all cellular operations 25 . If Airtel is becoming more humane and more sensitive as a brand. Leadership did not mean directing subordinates to execute orders but to work along with a team to achieve common objectives — it was.” 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. But broadly. This set of campaigns portrayed mobile users surrounded by caring family members. Right now. and a new exercise is being launched to this effect. the company is unwilling to discuss the new positioning in detail. That is precisely what the brand tried to achieve through its new positioning under the Airtel“Touch Tomorrow” brand campaign. existing customers were an important tool for market expansion and Bharti now focused on building closer relationships with them. Once you reached them you had to expand the market so there was need to address to new customers By that time. the focus is on positioning Airtel as a power brand with numerous regional sub-brands reflecting customer needs in various parts of the country. Also.77 lakh (it now has 1.cellular market was changing The leadership series was okay when you were wooing the crème de la crème of society. a survey showed that 50 per cent of the new customers choose a mobile phone brand mostly word-of-mouth endorsements from friends. 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. And with tariffs becoming more affordable — as cell companies tasrted cutting prices — it was time to expand the market.8 million customers).

Airtel offered rock bottom tariff rates (25 paise for 30 seconds) at night to Youtopia customers — a time when they make the maximum number of calls. This. The idea was to bring Internet and mobile in perfect harmony. With its earlier positioning. “The name was chosen from the popular movie title It Takes basically. Airtel was perceived as a brand for the well-heeled older customer. is Youtopia.might not always work in urban markets that are now getting increasingly saturated. launched last year. 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 with normal calls to make it cheaper for young people to use. but the company re-iterated that the branding exercise could be revived because Tango will be the brand to offer GPRS services — or permanent Internet. One such experiment. the company decided that it needed to segment the market. The other experiment that Bharti has worked on is to go in for product segmentation through the Tango brand name. says Sachdev. had less to do with the branding exercise as with inefficiency of service (accusingly slow download speeds) and the limited utility of WAP services. a brand aimed at the youth in the 14 to 19 age bracket and for those who are “young at heart”. It also set up merchandising exercises around the scheme — like a special portal for young people to buy things or bid for goods. With Youtopia Airtel hoped to reverse that In order to deliver the concept. however. Subsequently. 26 . you need the two services to tango to offer customers a new choice”. there was nothing for younger people. the ads were withdrawn. The brand was created to offer mobile users Internet-interface services or what is known as WAP (Wireless Application Protocol). To bring in new customers.

To achieve its objectives Bharti did three things. The idea was to make the brand affordable. The company is now reworking its Magic strategy even further. telephone booths and even kirana shops so that the offering was well within arms reach. the company came with vernacular ad campaigns Like“Magic Daalo Say Hello” This apart.The Magic Perhaps the more ambitious experiment has been with— the pre-paid card. Earlier. a ruse that saw the number of subscribers go up from 5.2 million today. overtaking Essar’s branded pre-paid card Speed.mostly for emergencies — and was not willing to pick up a normal mobile connection with its relatively high rentals (pre-paid cards do not include rental charges).47 lakh to 1. which was launched much ahead of Magic. • Third.000 with no strings attached and was simple to operate. which was launched much ahead of Magic. to make the product more “approachable” to the customer. 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. • Two. Such a customer used the phone sparingly. the product was made accessible and distributed through small stores. most importantly. • One. the branding strategy was aimed at roping in only 27 . feasible as a means of expanding the market even faster. the company roped in Karisma Kapoor and Shah Rukh Khan for a major ad campaign all across Delhi. accessible and. the product was made available at prices ranging from Rs 300 to Rs 3.

tone & language created to connect the category to the lives of the SEC B & SEC C segment – the middle class non-mobile user. 15-30 years of age. The strategy is targeted at the non user segment defined as young adults.user imagery. But now. insiders say the new branding strategy would be aimed at offering them value which they had not perceived would be available from using a pre-paid card. customers who were already inclined to opt for mobile services. PHASE II – Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion through India’s first national pre-paid card TV brand campaign • First time ever in India . • Airtel Magic positions itself on the platform of being excellent for emergency situations increasing productivity as a part of everyday life. The value proposition is centered around a person’s desire to make all his / her dreams.paid mobile card. That is why the new exercise is aimed at co-opting non-adopters. • Airtel today unveiled its strategy for market expansion with the launch of its new Airtel Magic pre-paid card brand campaign – ‘Magic hai to Mumkin hai’.romance driven strategy platform makes the value proposition of Airtel Magic‘Mumkin Hai’ come alive • All elements . While the exact strategy is under wraps. in the Sec B & C segment is aimed at acceler ating market expansion. The new campaign for Airtel Magic is all about empowering millions of Indians to be on top 28 . with basic service providers having been allowed limited mobility at far cheaper rates.interested customers . ambitions & aspirations instantly possible. mobile service providers could find themselves under threat again. India’s leading pre.that is.any pre-paid card brand goes on TV • A combination of the film genre exposed through the TV medium designed to connect with the masses of Indi • Youth based . • Sharukh Khan makes ‘everything in life possible’ while romancing pretty Kareena Kapoor with Airtel Magic. context.

Sharukh rose from a TV actor to become India’s top film star and national heartthrob. dancing… the Indian cinema. manner & language of the masses. The “Mumkin hai” value proposition will help us expand the market and gain a higher percentage of market shares in the process. The new TV campaign of Airtel Magic crafted in the Hindi film idiom. letting you befriend the world and opening up new horizons. Indeed. B & C. Where Sharukh Khan. (At just Rs. This strategy is designed to help us talk to this segment directly in the tone. holds millions of Indians together as one. Brand ambassadors Shahrukh Khan and Kareena Kapoor embody this ‘can do’ or “Mumkin Hai” spirit (infact that is the reason they were selected as brand ambassadors). well known to most as Bollywood. magnifies the empowering optimism of “Mumkin Hai”. hard work and the sheer ability to make a mark in such a short time. Kareena’s success is due to her attitude’. The brand is positioned to be relevant to the mass-market who want to make all their dreams hopes & desires come alive… instantly. brand positioning & brand slogan is an outcome of an extensive nationwide research and is an integral part of Airtel Magic’s 29 . The new brand slogan ‘Magic hai to Mumkin Hai. talent.of their lives. 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).per month Airtel Magic is so easy to.) Improving productivity. anything that think is possible is possible with Airtel Magic. in the endearing situation of a boy-girl romance. Both these stars have said ‘Mumkin hai’ and made it happen for themselves The genre of this new strategy & campaign is Hindi cinema led. The estimated addressable market of such customers in the next two years is around 25 million in Airtel’s 16 states. It gives you the freedom to control your life in a way never possible before. The strategy & new brand campaign is targeted at the large untapped base of intending mobile customers from Sec A. The new strategy aims at correcting the perception that the mobile category is useful mainly for ‘business’ or ‘work’ related scenarios. This genre connects millions across India. The new strategy.300/. The spirit of romance.

30 . of course.any pre-paid card brand gives such freedom to recharge any value A combination of the film genre exposed through the TV medium designed to connect with the masses of India. Working on the above game plan Bharti is constantly coming up with newer product offerings for the customers. ambitions & aspirations instantly possible. The campaign has been created by Percept Advertising PHASE III Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion through India’s first national pre-paid card TV brand campaign. letting you befriend the world and opening up new horizons. • The focus.romance driven strategy platform makes the value proposition of Airtel Magic . is to offer better quality of service. The new campaign for Airtel Magic is all about empowering millions of Indians to be on top of their lives. Youth based . The brand is positioned to be relevant to the mass-market who want to make all their dreams. . Indeed.At a amount of your choice you can recharge your account with available validity time .new multi-media campaign. Other Brand Building Initiatives • The main idea is to stay ahead of competition for at least six months.Aisi azaadi aur kahan?” come alive Sharukh Khan Makes ‘everything in life possible’ Airtel today unveiled its strategy for market expansion with the launch of its new Airtel Magic pre-paid card brand campaign – ‘Magic Hai to Mumkin Hai’. The new brand slogan‘Aisi azadi aur kahan’ has been specially created to capture this effectively. The value proposition is centered on a person’s desire to make all his / her dreams. First time ever in India .Improving productivity. hopes & desires come alive… instantly . anything that you think is possible is possible with Airtel Magic. It gives you the freedom to control your life in a way never possible before.

• To make the service simpler for customers using roaming facilities. • It will also launch a unified billing system across circles so. 31 . So. To ensure that customers don’t migrate to other competing services (which is known as churn and ranges from 10 to 15 per cent of the customer base every month). but the facility would be limited to the region in which they buy the card. it will provide real benefits to customers. for the first time for a cellular operator. • Bharti. • To assist customer care personnel to deal with subscriber queries. a storehouse of 40. • 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. The cost per picture is between Rs 5 to Rs 7. they must be given value-added products and services which competitors don’t provide. Airtel has devised common numbers for subscribers across the country for services like customer care. The idea is to create an Airtel community. food services and cinema amongst others. • The loyalty program will not be only for a ‘badge value’. This will offer subscribers tangible cash benefits depending upon their usage of the phone. • Another key area which Bharti is concentrating its attention upon is a new roaming service launched in Delhi under which calls of a roaming subscriber who is visiting the city will be routed directly to his mobile instead of traveling via his home network. • The company also offers multi-media messaging systems under which customers having a specialized phone with a in-built camera can take pictures and e-mail it to friends or store it in the phone. has decided to offer roaming services even to its pre-paid customers. the company is also working on a loyalty program. customers moving from one place to another do not have to close and then again open new accounts at another place.000 frequently asked questions and their answers have been stored on the computers.

Bharti is in the process of launching a new system in alliance with Mumbai-based Company Venture InfoTech which will enable a pre-paid card user to renew his subscription by just swiping a card. First. It is often available even with paanwalas. the competition takes two to four hours.• Bharti is also aware that it has to make owning a ready-to. providing them with instant. 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. the game is now moving beyond price to expanding distribution reach and servicing a well-spread-out clientele with technology and strategic alliances. and not only by Connect outlets. single-point access for any assistance they require. which includes easier payment of bills 32 . Now activation can be done by all of them. They are leveraging technology to expand their distribution network and deliver round-the-clock recharge options to its MOTS (Mobile on the Spot) subscribers. Unlike postpaid. A key area is to increase the number of activation centers. to reach its Magic pre-paid cards to subscribers' doorsteps.' a company delivering food at home. they are easier to obtain and convenient to use. Customers can dial 777 and enjoy a slew of services. CareTouch. mobile operators are beefing up their distribution channels. The company is constantly innovating to enhance the value proposition for its pre-paid service. 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. • Pre. Bharti is focusing on two factors to make pre-paid cards more attractive Keeping the entry cost low for consumers and making recharging more convenience. all within 15 to 20 minutes. Bharti Cellular has also launched a special service. Bharti Televentures has tied up with 'Waiter on wheels.paid cards are really catching up with the mobile phone users and it is actually helping the market to increase. In comparison. As befits a fastmoving consumer service. The company is also joining hands with local grocery shops which will enable users to recharge their cards by just making a phone call to the shop. for highvalue. Apart from improving the convenience of recharging. one need not pay security deposits for picking up a pre-paid card.use cellular service much easier than it is today. corporate customers.

Bharti’s View on its Branding strategy:First. Unflinching orientation to customer needs is the second key success factor. Bharti Cellular is offering a range of services without going through an interactive voice recorder ensuring that they save time. Airtel presented MTV Inbox the first ‘on-air’ SMS based interactive music dedication show exclusively for Airtel and Airtel Magic customers. 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. businesses need to budget for an increasingly higher spend on their brand promotion but this has to be undertaken in tandem with enterprise-wide “reengineering” of the business philosophy and core design. Customers (be it for industrial products or consumer goods and services) across the world are more informed and. production. and value-added services without any additional paper work. Both brands joined hands to target the high growth youth segment. with more choices and higher media clutter. and delivery operations for the product itself.service on priority basis. 33 . Besides the regular proactive reminder calls for bill payment customers can also call CareTouch for bill payments at free of cost. This is not to say that advertising and promotion are less relevant. Pro-active tracking of shifts in consumer behavior. Dedicated ‘CareTouch’ executives are expected to assist customers with any service on priority basis. brand building efforts in today’s context have to be seen in a more holistic manner. at the same time. As far as allocation of time and financial resources are concerned. anticipating redefined or emerging customer needs. Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts. too many companies mistakenly allocate a disproportionate amount on mere advertising and promotion. On the contrary. becoming more individualistic in their needs and far more demanding with the passage of time. Highly interactive VJ based show with real-time feedback mechanism. Customizing the product (and communication of its benefit) to meet the specific needs of various consumer/customer sub-segments is the third element in creating brand appreciation.

• Increase in advertisement spends affect the company’ s margins . 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. • The company‘s bottom line f alls victim to the bloated and highly paid workforce. the enterprise itself becomes more competitive. however.The positive spin to this argument is that by first addressing the fundamentals. • Distribution channel is not accurately categorized. Weakness • Little efforts over the Advertising of products. super ior quality products and an enviable distribution network. SWOT ANALYSIS Strengths • Being one of the largest companies in India the company has achieved a degree of focus in its core business of its products • It has a strong brand name. Opportunities 34 . hence can’t compete in low price segment. It is. • Premium priced products. This can be the beginning of a virtuous cycle wherein brand equity continues to increase as the enterprise sustains delivery of an appropriate product or service at an ever increasing value. • No separate strategy for rural market. • It has a clear and well-defined organization structure and limits of financial authority. which affects its mar gins.

Rural penetration too holds vas t potential to bring about growth. Fluctuations in the prices of raw materials would have significant impact on costs and mar gins of the company. 35 . • Moreover . • Company’s major raw materials are influenced by government policies / controls as well as vagaries of the monsoons. inordinate hike in Broad B and Internet products would also increases company’s production and distribution cost. • Exports of products will also have huge chances in the coming years • Airtel’s business has ample scope for gaining market share from the unorganized sector .• The company's financial performance can receive a major boost from There is a lot of scope of product and market diversification. Threats The slowdown in the economy has restricted top line growth of most FMCG major s and for Airtel also it will be difficult to maintain historical growth rates in such a depressed scenario.

offering voice and data services in 16 of the country's 23 licens Vodafone Essar. 36 .VODAFONE ESSAR Vodafone Essar. 2G services based on 900 MHz and 1800 MHz digital GSM technology. previously is a Hutchhison Essar in cellular operator India that covers 16 telecom circles in India. its products are simply branded Vodafone. Despite the official name being Vodafone Essar. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. previously is a Hutchhison Essar in cellular operator India that covers 16 telecom circles in India Despite the official name being Vodafone Essar. its products are simply branded Vodafone.

Comparison of marketing strategies Between Bharti Airtel and 37 .

Vodafone making shares and changing the strategies to capture the market 38 . Vodafone has been giving tough competition to Bharti Airtel. With a different technology Vodafone creates its own market Vodafone today deals in every business of communication sector. The comparison shows how Hutchison Essar Telecom. Captured 22% market share in one month of its first launch of postpaid subscription in 2002.Vodafone Purpose of comparison The sub main purpose of this report is to compare the Strategies adopted by Bharti Airtel and its rival Vodafone marketing The comparison shows how both of the companies have been challenging each other to gain market shares. However. Vodafone is the second largest player and share holder in Communication sector. Why comparison with vodafone Bharti Airtel is the leader in telecommunication sector Bharti Airtel holds the lion share of market of communication sector. Since its launch Vodafone has been adopting aggressive marketing strategies.

Promotion for study of poor childrens.Brand positioning by Bharti Airtel Market segmentation Geographical segment (metropolitans & cities India) Demographic segment .middle income groups People age group of 20 to 28 year Target marketing People who living in cities and towns. Poor or middle income group people. Marketing mix Price: low price strategy 39 . Youngsters in big cities. Businessmen Positioning Creating brands (Sharukh khan & Sachin Tendulker) Ads and promotions.

Place: Product: Promotion: maximum outlets and service centers verities available for various groups various schemes for pre-paid and post-paid Marketing strategies of VODAFONE Vodafone target the rural India The main targeted customers of Vodafone are from rural India. Brand positioning by VODAFONE 40 . The cost for these sets was Rs-799-849-1099\set and onward Free support and services In every district and big towns Vodafone opens its service centers to provide better support and services. Targeting youngsters in metropolitans Vodafone attracts youngsters by offering colorful handset at very low prices. Strong logistics and supply chain Vodafone has a strong logistic and supply all over India. In every small town the potential customers can easily purchase the Vodafone SIM & Sets. Offering cheap handsets Vodafone offers cheap and free connections to all customers. By offering cheap and light mobile sets Vodafone attracts most of the customers of small villages and towns.

middle income groups Target marketing People living in small towns and villages. Businessmen Positioning Creating brands Ads and promotions Marketing mix Price : low price strategy Place : maximum outlets and service centers Product : verities available for various groups Promotion: various schemes for pre-paid and post-paid Services provided by Bharti AirteI • Mobile services with GSM technology • Fixed-line connections • National and international long distance services 41 . Youngsters in big cities.Market segmentation Geographical segment (rural India) Demographic segment . Poor and middle income groups.

line telephone services Universal Internetworking VoIP (Voice over Internet Protocol) Interactive Television Visual Communication Broadband Portal 42 .• VSAT. Internet services and network solutions • Broadband services Services provided by Vodafone mobile services with GSM technology fixed.

the questionnaire method. DATA COLLECTION METHOD There two type of method of data collection • PRIMARY DATA 43 . Lastly observation method has been continuous with the questionnaire method. The prime objective of the project is to compare Airtel with the existing competitor (Vodafone) in the market and the impact of WLL on Airtel. Secondary data has been used to support primary data wherever needed. as one continuously observes the surrounding environment he works in. Further direct interview method. Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was. where a face to-face formal interview was taken. 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.RESEARCH METHODOLOGY Achieving accuracy in any research requires a deep study regarding the subject.

sample design consists of random sampling. NEWSPAPERS • INDUSTRY REPORTS • COMPANY’S INTERNET SITE • SOMEOTHER WEBSITES SAMPLE UNIT The research process was done by interacting with number of customers during the activities performed. Primary data is that which is the collected for the first time and thus happen to be originated in character. SECONDARY DATA Secondary data refer to the data that has been already collected .• SECONDARY DATA PRIMARY DATA Data used for the research work was primary in nature. which has been used to carry out this study. MAGAZINES. etc. are as follow • BOOKS. JOURNALS. QUESTIONNAIRE SURVEY In the studies a questionnaire is prepared. the questionnaire consists of 15 questions. RELEVANT STUDY MATERIAL AND 44 .the secondary data. canopies. markets cold calling. which included.

45 . RESEARCH INSTRUMENT Questionnaire The questionnaire was formulated by keep in mind the following points. • Identifying the needs to be known. that was accomplished by performing various activities designed. market research was undertaken. • Giving the respondents clear comprehension of the question.SAMPLE SIZE: 200 PEOPLE METHOD OF COLLECTION Field procedure for gathering primary data included observation and interview schedule in which the questionnaires were filed by the personal interviews through self administered survey was done to collect the data.

on many occasions the respondent groups gave us a cold shoulder. 46 . 2. 7. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range. 8. 4. 6.LIMITATIONS No project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. Some retailers/whole sellers refuse to cooperate with the queries. Lack of proper information and experience due to short period of time.Some retailers did not give answer all the question or do not have time to answers. Lack of time is the basic limitation in the project. The following points in this direction would add to our total deliberations:1. which was being studied. During the study. 5. 3. Money played a vital factor in the whole project duration. Some retailers/wholesalers gave biased or incomplete information regarding the study.

Data analysis And Interpretation 47 .

81 17.96 16.06 21.01 8.49 16.MARKET PLAYERS IN TELE COMMUNICATION Operator Market share Aug''05 Bharti Airtel Vodafone Reliance info Idea Cellular 19. FINDINGS AND ANALYSIS Age Group Graph 48 .49 Market share Aug''05 Market share Aug''09 2 5 2 0 1 5 1 0 5 0 M a r k e tS h a r e A u g 0 5 M a r k e ts h a r e 0 9 B h a r t iA i r t e l V o d a f o n e R e l i a n c e I n f o I d e a C e l l u l a r From above the graph it show that in 2005 Vodafone has highest market share but in 2009 Airtel gets highest share market comperesion to other company.03 10.45 Market share Aug''09 22.

Occupation Graph OCCUPATION 1 0 % 1 5% 15 % S tu de n t E xe cu tiv es H ou se h old s O th e r 5 5% STUDENTS EXECUTIVES HOUSEHOLDS OTHER As the above graph shows that 55% of the total people interviewed are working. They are those who are at home or have small business units etc. This segment is the one which gives maximum business to the mobile operators. these people are the ones who are the maximum users of mobile phones. This segment constitutes the young executives and other office going people. They are15% of the total interviewed people. the people who are in the age group of 21-28 years are the ones who are the maximum users of mobile phones. So. They are the young executives managers. They are 20% of the total. They are 65% of the total people who were interviewed.As we can see from the above graph. And the next age group is the youngest generation who are 15-21 years old. Tele 49 . The next age group are the people who are 28-35 years old. They are school and college going students and carry mobile phones to flaunt.

They are 15% of the whole. There two major company in mobile phone service sector Vodafone and Airtel who respectively hold the market share with other company as 17% and 20% of total market user segment of mobile customer. The next category is the households.callers etc. The next segment is the students. They are 20% of the whole. small units which operate from their homes etc. who are either housewife. Customer Service At Airtel Graph CUSTOMER SATISFACTION LEVEL 50 . Service Provider Graph These are the total market share of mobile user or people captured by the mobile provider company. who require mobile for their official purposes. And 10% of the whole is categories who are the professionals.

20% of the people seemed partially satisfied with the customer services and only 60% seem to be fully satisfied with Airtel’s customer services. Airtel should make sure that Magic is available in each and every nook and corner of the market. He can even switch over his brand. 60% of the people are satisfied with the customer services provided by Airtel. 10% of the people were fully dissatisfied with the customer services of Airtel. They are the ones who have the maximum share in the market but they are lagging behind in the customer services. which is a very large amount. Type Of Card Graph T yp e so f card s sim card s ca sh card s 1 5% 8 5% Cash cards seemed quite popular among the people interviewed.10% 10% Fully Satisfy Partialy Dissatisfy 20% 60% Fully Dissatisfy As the above graph clearly shows that customer services at Airtel seems good. This could leave an impact on the mind of the consumer. 15% of the people were having sim connections which is the regular bil. 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. 51 .

45% of the people were not at all aware of such a technology. Awareness of WLL Players Graph 52 . 64% people spend this amount. And the remaining 12% had an expense more than RS 1000. So. 24% people spend RS 300 per month as their monthly mobile expense. Awareness About WLL Graph 3 5 % A w a re n e ss O fW L L Y e s N o 6 5 % WLL seemed to be a new word for many of the people. in order to get the answer for this question they were first explained the concept . they could the ones having sim connections or having cash cards and having a lot of business calls on their mobile.Only 65% people knew WLL is all about.Monthly expense graph Monthly Expense 24% 12% R s 600 R s 450 R s 200 64% People on an average spend RS 500 per month as their mobile phone expense.

of prepared cards than post paid cards. They only know more about Vodafone. Possibly because of less promotions done by them as compared to Vodafone On the basis of analysis of the questionnaire I have found that the maximum no. of people who use mobile phones is in the age group of 20 to 28. So. 8 0 % 8 0 % 7 0 % 6 0 % 5 0 % 4 0 % 3 0 % 2 0 % 1 0 % 0 % A irte l V o d a fo n e V o d a fo n e . Tata was hardly a known brand in this new field. 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. 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.A irte l. Airtel has a hold in the market because it has the maximum no. so it must improve upon it customer services. of connections.2 0 % A irte l V o d a fo n e Vodafone was the brand which was popular amongst the interviewed people. There is more no. Who are the young executives and other office goers? They spend a maximum of RS 500 as their mobile expense. As. 53 . this could be one the reasons of its popularity. As Vodafone had done so much advertising and has it banners and hoarding spread all over Delhi. The mobile users want to spend money side by side than to spend money at the end of the month on a big bill. As far as WLL is concerned people are aware about it but not many people are aware about Tata.

Customer Response Towards Questionnaire 54 .

2 which mobile company services you are using now a days? Airtel Vodafone Others 55 .Q.1 Name those companies which provide telecom services now a days? Airtel Vodafone Reliance Tata Docomo Idea Q.

2 0 % A ir te l A ir te l. The graph suggest that Airtel providing better service in present time. prefer most? Airtel Vodafone Reliance Tata Docomo Idea Customer preference using telecom service 56 .O th e r s .3 0 % V o d a fo n e O th e r s The graph clearly show that there is 50% people who are using Airtel and Vodafone has only 30% customer in the market other is remaining 20 %which include all other company. 5 0 % V o d a fo n e . Q.3 Which Brand you.

In this graph Airtel customer is about 40% and Vodafone has 28% and other are not in large no. so Airtel has maximum customer compare to other. 4 0 . Most of time businessmen don’t change their product due to their business . Q. 3 0 .There are some people who used the product at least 5-10 years due to their satisfaction of the brand and 5% people who used the product for long time.4 How long you have been using this Product? 0-2 Years 2-5 Years 5-10 Years More than 10 years B r a n dL o y a lt y 8 0 % 6 0 % 4 0 % 2 0 % 0 % 0 -2 S e rie s 1 6 5 % 2 -5 2 0 % 5 -1 0 1 0 % M o reth a n1 0 y e a r 5 % This graph show that customer change their brand according to new schemes launch by the different company. In this graph there are 65% customers which are loyal for only 0-2 years.2 5 0 .3 5 0 .0 5 0 0 A ir t e l V o d a f o n e R e lia n c e T a t a I d e a 1 4 % 1 0 % 6 % 4 2 % 2 8 % Most of the customer like to use Airtel because it provide better service and networking.1 5 0 . 1 0 . 2 0 .5 Are you using other product with Airtel? 57 .4 5 0 .0 . And 20% people they used the product at least 2-5 . Q.

8 5 % In this graph it represent that every customers before purchase they gather the information .Yes No A i r t e l Y E S . The graph show that people are more aware to purchase any product.6 Do you collect any information search before decision making purchase? N O .4 0 % Y E S N O N O . 58 .85% people search information before purchasing and 15%people they do not want to search any information .6 0 % Here are the customer responses about the use of the Airtel product and other product rather than Airtel in this segment of survey 60 % of customer are aspire with Airtel and 40 % shown interest in other telecom products in urban areas. Q.1 5 % Y E S N O Y E S . They purchase which they like to want.

Vodafone is also good but not enough to Airtel.Q.Tata is below average due low markets and less awareness of the people. Reliance Tata Indicom. So Airtel is a strong brand in the market due to their better services.7 how would you rate the experience with Brand? Excellent Average Airtel Vodafone Reliance Tata Good Average Below 1 0 % 1 5 % A ir te lE x c e lle n t V o d a fo n eG o o d R e lia n c eA v e r a g e T a taB e lo wA v e r a g e 5 0 % 2 5 % The above graph show that Airtel is more excellent brand compare to Vodafone. Reliance is quiet average by the rate of experience by the customer according to brand name. 59 .

The maximum no. As we know that now Airtel has already launched its product with logo “’ Aisi azaadi aur kahan” has already became popular in market. As Airtel is the only company having the maximum no of mobile connections so it must seriously look into the loop holes of the existing customer service department. Maximum no. Very seriously and update its own strategies from time to time and when the need arises. marketing. For this Airtel has to work on its all marketing strategies. Airtel has to take Vodafone. Cash cards are the most popular type of mobile connections. I can conclude that Airtel lagged behind its competitors as far as customer service and availability is concerned. as they are consumer friendly and recharging the connection is not a problem. 60 . brand image etc. With aggressive marketing strategies Airtel has to target rural India as 70% of population of India lives in these areas. promotion. From the comparison and deep analysis of every aspect of business of both the companies we can conclude that bharti Airtel has to more work in every field of communication business. So we can say that in spite of so many competitors in the market Airtel is having a good position just because every time. it tries its best to understand the need of its important customers. of people spends RS 500 on their connections.CONCLUSION After analyzing the findings of the research. It is the time not only to survive but to sustain in the market for a long time. of people who use the mobile is in the age group of 20 to 28.

SUGGESTIONS Following are the few suggestions to AIRTEL for improving the market share and image of the products concerned. in terms of quality. PRICE 61 . PRODUCT *Modification must be brought about in AIRTEL. 2. Sales promotion tools like gifts. PROMOT ION *Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness. Its demand should be increased. * Catalogues should be distributed among customer.The other segment may be costumers of all age groups. 4. PCO & general store 3. PLACE * The brands must be made available easily in. *Free samples should be distributed among the prospects. 1. contests and coupons must be given to retailers as well as customers and prospects.

BIBLIOGRAPHY In this project report.com www.in 62 . 12 “Market Research” – D. All the material detailed below provides effective help and a guiding layout while designing this text report. Kothari Websites: www. Magazines/Journals and Web Sites have been referred.R.Vodafone.com www.D.* Price should be as competitive as other company maintains. * Distribution of new connection should be in reach of customer pocket.india. Airtelworld. Books : “Principles of Marketing” –Philip Kotler & Kevin keller edi. while finalizing and for analyzing quality problem in details the following Books. Sharma “Research Methodology” – C.

.QUESTIONNAIRE Dear Sir.2 which mobile company services you are using now a days? Airtel Vodafone Reliance 63 . Q. student of MBA of Dr. I.1 Name those companies which provide telecom services now a days? Airtel Vodafone Reliance Tata Indicom Idea Q. I Raman kumar.T Business school I am doing my project on “Comparative analysis of marketing strategy of Vodafone and Airtel” Please give your precious time for filling these detail.

3 Among them.5 Are you using other product instead of Airtel? Yes No Q.Tata Indicom Idea Q. prefer most? Airtel Vodafone Reliance Tata Indicom Idea Q.4 How long you have been using this Product? 0-2 Years 2-5 Years 5-10 Years More than 10 years Q. which Brand you.6 how would you rate the experience with Brand? Excellent Airtel Vodafone Reliance Tata Indicom Good Average Below Average 64 .

11 If you have to purchase a new connection or product in near future. 6.Q. which sources are used? Magazines Dealers Sales Executives Any others Q.9 What are the features you look for in a product before making purchase decision? Give preferences (1-Highest.10. network Value for money Vehicle performance Add on features or ergonomics of design Q.8 If yes. 65 .least) Brand credibility Price and Discount After sales services and parts.7 Do you collect any information search before making purchase? Yes No Q. Which of these marketing / sales schemes attracts you while purchasing any connection? Good Network Discount scheme Service package Any other Q.

if yes then how? Are you satisfied with these promotional activities? Very satisfied somewhat satisfied Customer Care By Ad Films By Camp 24 hrs call center services Q.13 How would you r ate Airtel performance as your expectation on 5 points scale (5 Highest?) Not satisfied 1 After Sale service Maintenance Product as per expectation 2 3 4 5 Q. service availability and parts availability? 66 .which Brand will you go for and why? _________________________________________________ _________________________________________________ Q.12 Are you aware of various promotional activities being run by Airtel.14 What are you suggestions for improving the product quality.

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