PROJECT REPORT ON

MARKETING STRATEGIES OF AIRTEL

SUBMITTED UNDER PARTIAL FULFILLMENT OF THE REQUIREMENT FOR TRAINING SUPERVISOR: PROJECT ADVISOR:

SUBMITTED BY:

SESSION:

ACKNOWLEDGEMENT
I acknowledge the sincere assistance provided to me from several rather unexpected quarters during the course of

execution of this study. It would be a mammoth task to place on record my gratitude to each and every one of them but a whole hearted attempt would be made nevertheless, least I be branded ungrateful. I am extremely thankful to Mr.Abhishek Yadav, (U i!

Advis"r# for giving me an opportunity to undergo training in $%ARTI AIRTEL MARKETING and making my stay at AIRTEL MARKETING a memorable learning experience. Where the emotions are involved words cease to work. I am deeply indebt to &&&&&&&&&&&&&&&&&&&&&& for her encouragement, affections, valuable advice and guidance that helped me to complete this project successfully.

E'ECUTI(E SUMMARY

he project aims at understanding the !arketing strategies at "irtel and its impact on the perception of "irtel #ellular $ervices. %esearch has demonstrated conclusively that it is far more costly to win a new customer than it is to maintain an existing one. "nd there is no better way to retain a customer than to exceed his expectations. &or this purpose it is essential to know the level of customer satisfaction. he focus of my research was the

measurement of customer satisfaction level for the services provided by 'harti "irtel. he research was done for the

corporate clients of 'harti "irtel. !y job was not only to represent the #orporate $ales (ept. and collect the feedback from the clients but also to get the major complaints resolved through internal counselling. here can be no better opportunity

to interact with the external as well as the internal customers of an organi)ation. &inally the results of the research verify the fact that keeping the customer satisfied is the best strategy to not only retain the existing customers but also to expand the business to new hori)ons.

TA$LE OF CONTENTS

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TELECOMMUNICATION MARKET IN INDIA

he Indian telecommunications .etwork with 3:;m telephone connections is the fifth largest in the world and is the second largest among the emerging economies of "sia. oday it is the

fastest growing market in the world and represents unique opportunities for -/ companies in the stagnant global scenario. eleAdensity, which was languishing at 3B in 2555, has shown an impressive jump to 5.:B in 3;;> and 2;.:B in 3;;0 and is set to increase to 3;B in the next five years beating the 1ovt. target by three years. "ccordingly, India requires incremental

investments of -$( 3;A3: bln for the next five years. 6rivate operators have made mobile telephony the fastest growing (over 2>8B p.a.C in India. With more than 44 million users (both #(!" and 1$!C, wireless is the principal growth engine of the Indian telecom industry. 1iven the current growth trends, cellular connections in India will surpass fixed line by late 3;;8Dearly 3;;:. Intense competition between the four main private groups A 'harti, <odafone, ata and %eliance and with the $tate sector incumbentsA'$.+ and ! .+ has brought about a significant drop in tariffs. here has been almost 08B in cell

phone charges, 0;B in I+( calls and 3:B drop in .+( charges, resulting in a boom time for the consumers. he 1overnment has played a key enabling role by deregulating and liberalising the industry, ushering in competition and paving the way for growth. While there were regulatory irregularities earlier, resulting in litigation, these have all been addressed now. #ustoms duties on hardware and mobile handsets have been reduced from 28 percent to : percent. he Indian government has merged the I !inistries to speed up reforms 'ill and to and elecom on the

decision the

#ommunication

#onvergence

enable

common

regulation of the Internet, broadcasting and telecoms will be taken after the new 1overnment assumes responsibilities in may this year. "n independent regulatory body ( %"IC and dispute settlement body ( ($" C is fully functional.

INDIAN CELLULAR MARKET

he 'harti 1roup, which operates in 34 circles, continues to be the countryEs largest cellular operator, with :; lakh subscribers. '$.+, which operates in 33 circles, has a subscriber base of 40 lakh subscribers. hus '$.+ stands second largest cellular

operator in terms of subscriber base at the end of the fiscal

ending !arch 42, 3;;0, displacing <odafone from the second position. <odafone, which operates in only eighteen circles, is the third largest operator with a subscriber base of 43 lakh. -nlike fellow public sector undertaking, ! .+, which operates in !umbai and (elhi, '$.+ has been a very aggressive player in the market. F#ellular operators who expected '$.+ to go the ! .+ way, were taken by surprise and did not take effective steps to counter it, till it was too late in the day,F said a telecom analyst. 'elying fears of a slowdown in cellular subscriber acquisitions, the cell club has reported a 0.53B growth, the highest growth in any month so far, during !arch 3;;:. 7earAonAyear, the cellular subscriber base in the country has almost doubled in !arch 3;;:, and is expanding at the rate of 3:B per year thereafter. he cellular subscriber club expanded by 32.42 lakh last month. his is much higher than :.5 lakh subscribers added in &ebruary 3;;: and 3.24 lakh in ?anuary 3;;:. Idea, which operates in $even circles, is the fourth largest operator with a subscriber base of 20.9; lakh, higher than '6+Es 22.42 lakh subscribers across four circles. he subscriber numbers per operator drop

sharply with the sixth largest operator, $pice #ommunications, having a subscriber base of 5.8; lakh, followed by %eliance

elecomEs 9.5 lakh subscribers. ! .+ is the ninth largest operator, with a base of 9.43 lakh subscribers. While the subscriber baseAjumped by 4.49B to 88.45 lakh in the metros, subscriber base of category " circles of !aharashtra, 1ujarat, "ndhra 6radesh, /arnataka and amil .adu jumped by

2;.29 B to reach 84.>8 lakh. #ategory ' circles of /erala, 6unjab, =aryana, -ttar 6radesh (WestC, -ttar 6radesh (*astC, %ajasthan, !adhya 6radesh and West 'engal recorded a jump of 2;.>5B, with a total base of 44.08 lakh subscribers. #ircle # has reported 23.08 B growth with subscriber numbers jumping to :.;9 lakh. "mong the metros, while !umbai added 2,>4,29; subscribers, higher than the 2,:9,>8> added by (elhi, the #apitalEs cellular subscriber base of over 9; lakh is still higher than !umbaiEs >>.95 lakh. While the cellular industry has been on roll for the first three quarters of the previous financial year with an average of 2>.0: lakh monthly additions in the third quarter, the first two months of 3;;0 had seen the growth slowing down.

GSM MARKET IN INDIA

Re)i" a* I !eres! Gr"+,s & GSM I dia

With a population of around 2.2 billion growing at roughly 2.0 per cent a year, India is potentially one of the most exciting 1$! markets in the world. "fter two rather difficult years, the past 23 months have seen the regionEs promise beginning to come to fruition. !uch of this success can be attributed to the

stabilisation of the licensing and regulatory environment.

IndiaEs

telecommunications

have

undergone

steady

liberalisation since 2558 when the Indian government first sought private investment in the sector. !ore significant liberalisation followed in 255> with the licensing of new local fixed line and mobile service providers. =owever, it has been the
9

governmentEs .ew

elecom 6olicy (2555C that has had the most

radical impact on the development of 1$! services. E he policyEs mission statement is Eaffordable communications for allE, here

is a genuine commitment to creating a modern and efficient communications infrastructure that takes account of the

convergence of telecom, I

and media. In addition, the policy

places significant emphasis on greater competition for both fixed and mobile services.E

#ompetition in the mobile sector has already had a visible impact on prices with calls currently costing less than 5 cents per minute. his means that service costs have fallen by >; per cent since the first 1$! networks became live in 255:. It also helps explain why a recent elecom "sia survey revealed that more

than 0; per cent of Indian mobile subscribers felt that prices were now at a reasonable level. ,ne of the challenges facing 1$! operators in India is the diversity of the coverage regions Afrom remote rural regions to some of the most densely populated metropolitan areas in the world. India has more than 8; networks, which cover the seven largest cities, over 0;;; towns and several +acs villages. $uch depth of coverage has required enormous investment from IndiaEs operators. It is estimated that more than %s3;; billion

10

had been invested in IndiaEs 1$! industry by midA3;;;, a figure that is set to be supplemented by a further %s. 4;; billion over the next five years.

he good news is that subscriber growth is beginning to look healthy. With IndiaEs low 6# penetration and high average Internet usage Aat 28A3; hours a month per user it is comparable to the -$ Athe market for mobile data and mAcommerce looks extremely promising. W"6 services have already been launched in the subcontinent and the first 16%$ networks are in the process of being rolled out. In the year ahead, 1$! India will work with its members to realise the potential of early packet services in anticipation of the award of 41$! licences.

I dia -as!es! )r".i ) GSM /ar! India is expected to have 28: million 1$! (global system for mobile communicationsC customers by 3;;0A;9 compared to 3> million subscribers as on !arch 3;;:, according to the 1lobal !obile $uppliers "ssociation. F&or 1$!, India is a success story. It is one of the fastest growing markets with its subscriber base doubling in 3;;:. "t this pace, the target of 2:; million subscribers by 3;;0A3;;9 is definitely achievable,F "lan =adden, president of 1$", said at a news conference in .ew (elhi.

11

1lobally, the 1$! market reached 2 billion users in &ebruary 3;;:, he said, adding 1$! accounted for 9; per cent of the new subscriber growth in 3;;:.F"lmost every +atin "merican operator has chosen 1$!. In .orth "merica 1$! growth is bigger than #(!" (code division multiple accessC,F he said. #ommenting on the raging debate over 1$! versus #(!" in mobile services arena, =adden saidG F1$! is the worldEs most successful mobile standard with over 2 billion users, and is an open mobile standard. It also supports automatic international roaming, which is a major contributor to business plans.F

I dia0s GSM /"bi*e -ir/s0 reve +e +, 12 ,3! IndiaHs private telecoms firms offering 1$!Abased mobile

services reported a 38 percent rise in revenue in the year to !arch 3;;0 but said future growth rates could slow because of heavy taxes on the nascent industry. "lthough IndiaHs mobile sector is the worldHs fastest growing major wireless market, it is amongst the highest taxed industries in the country. !obile carriers pay as much as 3: percent of their revenue as licence fee, spectrum charges and other taxes. he #ellular ,perators

"ssociation of India (#,"IC said revenue for fiscal 3;;4D;8 stood at 94.;9 billion rupees (I2.9> billionC compared with >8 billion rupees a year earlier. "ccording to .<. %amachandran, director

12

general at #,"I,

J hese revenue growth rates cannot be

maintained unless there is a concerted effort by the government to cut excessive levies and allow sharing of infrastructureK

J'ut the potential to do much better exists as there is still huge demand in the sector.K %amachandran said the sector was still losing money but declined to elaborate. $ales jumped because of a doubling of the 1$! (1lobal $ystem people of !obile

#ommunicationsC

user base as more

entered the

flourishing market thanks to one of the lowest call rates in the world. 'ut the monthly average revenue per user, a key measure of profitability, declined 20.8 percent to 843 rupees in the fourth quarter compared with :34 rupees in the first quarter due to a cut in tariffs and excessive competition among companies. 1rowth slowing, demand untappedG he association has not

included the financial performance and the 1$!Auser base of stateArun firms 'harat $anchar .igam +td, the secondAranked player, and !ahanagar said. elephone .igam +td, %amachandran

here are 2:; million 1$! customers and more than 5>

million users of the rival #(!"Abased mobile services in the country. he pace of growth in monthly additions is slowing after just 2.3: million users took up the service in "pril compared with

13

2.5 million in the previous month and 2.>4 million in &ebruary. %amachandran blamed the slowdown on a majority of small 1$! operators being unable to expand networks into rural swathes where demand remained largely untapped. J,ur surpluses are not enough to cover costs of network expansion and financing charges on loans. We are making money only to cover operating expenses,K he said. #arriers are now subsidising handset costs to woo users into the

underpenetrated industry forecast to have more than 3:; million customers by 3;;0. %oughly three percent of Indians own a mobile phone compared with about 3; percent in #hina. "bout a do)en firms such as 'harti "irtel +td, 39 percent owned by $ingapore Indian elecommunications, %eliance Infocomm +td and the of <odafone group battle in the hotly

1$!Aunit

competitive sector.

14

DOES GSM %A(E T%E EDGE4

1$! operators are not the only ones who are worried about the rapid strides made by #(!" mobile players %eliance Infocomm and ata Indicom in the Indian cellular marketL he 1$! suppliers M both handset and equipment A who incidentally also have their other foot firmly placed in the #(!" pie, are beginning to lose some sleep over what was earlier termed as NnicheH and NminusculeH data carriage market by the operators "part from the strong success of the two #(!" operators whose networks are based on code division multiple access (#(!"C, the miserable showing of the four global standard for mobile (1$!C

15

based networks that launched general packet radio service (16%$C service for data connectivity in last three years, has the vendors worried. 1lobal mobile $uppliers "ssociation (1$"C now believes that even though India will primarily remain a voice trafficAled market in next twoAthree years, the data traffic component will grow by 3:A4; per cent, an optimism that itHs trying to make 1$! operators feel as well.

T%E CDMA C%ALLENGE #(!" players had launched their services with #(!" 3;;; 2OA based networks, which can give hiAspeed, alwaysAon connectivity to the Internet, and other data services. 1$! operators, on the other hand, have had to migrate from the frustrating experience of W"6 (wireless application protocolC to 16%$, which has not

16

significantly improved the subscriberHs experience of surfing the .et onDfrom mobile. he top brass of 1$", an organisation comprising .okia, $iemens, *ricsson, "lcatel and +ucent echnologies A met on

uesday in the capital to persuade the operators to adopt *(1* (*nhanced (ata rates for 1$! *volutionC and leave 16%$ behind as a dream gone sour. ,nly "irtel, <odafone, '6+ !obile and Idea #ellular had launched 16%$, but the data transfer speeds of 16%$ have been abysmal. he field trials gave a speed of around :8 kbps, but the actual speeds have not exceeded 28A29 kbps, a major reason why 16%$ growth has been so slow. "s against the total 1$! cellular base of :.>2 crore, the country has between 3,9;,;;; lakh 16%$ users only. In comparison, the two #(!" operators have about 23; lakh connections. "ll these sets are data compliant. hough no

figures are available as to how many use these for data services, the figure is believed to be respectable as a percentage ratio for #(!". $har!i is a*/"s! !here 'ut first, the *(1*P 'harti #ellular is close to commercially launching its *(1* service in (elhi and !umbai by end !ay or early ?une, sources said. he company was the first to conduct

field trials in .ovember with its equipment supplier *ricsson. Idea

17

too held *(1* field trials in &ebruary this year with its vendor .okia. <odafone and '6+ are yet to hold the trials. he two

companies would eventually migrate to *(1*, but perhaps after seeing the response to 'hartiHs service.

*(1* holds the promise of delivering data speeds of around 20;A 29; kbps (as against the theoretical speed of around 49; kbpsC which, if achieved, promises the launch of many data

applications.

he scalable cost of migrating from 16%$ to *(1*

is not too high and mainly comprises software upgrades in case of a modern network such as 'harti and =utch, claimed chairman of 1$" India chapter %akesh !alik.

Wi** GSM /ai !ai

i!s heads!ar!4

"t the 1$! *volution &orum held in .ew (elhi, 1$" president "lan =adden predicted that 1$! growth will far outstrip #(!" as was happening globally. =e felt India could have as many as 3;; million 1$! subscribers by 3;;0A3;;9, up from nine million in (ecember 3;;8. "ccording to 1$", there are over 2.2 billion 1$! subscribers worldwide as against 3:; million #(!" customers. he revenue of top 3: global operators from data

averages 29 per cent and 33 of these operators run 1$!

18

networks. ,verall, there are 0> operators in :; countries that have committed to deploy *(1*. "lmost every country has a 1$!Abased network and even those -$ operators, which operated on nowAdefunct (!" technology,

were migrating gradually to 1$!, not #(!", pointed out =adden at the 1$! *volution &orum. he &orum is a global 1$" program to assist the operators for evolution to third generation (41C technologies. J6eople are using their phones for much more than voice. &ifteen networks have commercially launched *(1* as it can run 41 like services in the existing spectrum for the operators without needing a 41 license. *ven the migration to a fullAfledged 41 level of Wideband #(!" (W#(!"C will be smooth with *(1*,K said =adden. J'esides, the automatic roaming provided by 1$! networks in almost 3;; countries is a power that #(!" doesnHt give you. We know for sure that almost 3;A3: per cent of the revenue for some 1$! operators comes from roaming customers,K he added. 'ut #(!" is no pushover with /orea and 6hilippines as the shining jewels in its crown. he first #(!" 3;;; 2O was

commercially deployed in ,ctober 3;;;.

"lready, 92 operators have launched 00 #(!" 3;;; 2O networks whereas nine have launched services based on 2x*<A(,

19

platform across "sia, the "mericas and *urope. "t least, 2> new 2O and six 2x*<A(, networks are scheduled to be deployed in 3;;8, according to #(!" (evelopment 1roup. *<A(, and *<A(< are the next level of evolution on the #(!" 3;;; 2O platform, capable of delivering services comparable to 41 W#(!".

Where are !he /"de*s4 What will matter a lot in this war will be the availability of *(1* compliant handsets at affordable rates. While the two #(!" operators have been giving out handsets that can give hiAspeed data transfer, same has not been the case with 1$!. *ven now, 16%$ handsets have not become commonplace and 16%$ feature is found only in mid and highAend segment handsets.

E d s+/ )a/e When the networks deploy *(1*, subscribers can expect the delivery of advanced mobile services such as easy downloading of video and music clips, full multimedia messaging, besides highAspeed Internet and eAmail access, provided their handset supports all this. 'ut the real cruncher will be the migration at a later stage to 41 technologies such as W#(!", *<A(, or *<A(" as and when the government decides what to do with the 41 licences. W#(!" for

20

example promises delivery of a phenomenal 3 megabytes per second (mbpsC, equivalent to what a leased line in many middle level corporates gives.

!ore importantly, W#(!" will spawn a whole new range of full motion audioAvideo applications, including video telephony. 1$! lobby may continue to remain gung ho over the future of their technologies over that boosted by the "merican firms @ualcomm and !otorola, but Indian market could well throw an interesting scenario that industry experts will do well to watch. In the coming months, %eliance plans to offer its #(!" subscribers much more than what 1$! players intend to deliver through their *(1* for their subscribers.

Who succeeds in this battle for mobile customerHs eyeballs is most difficult to predict. " /orea and ?apan may not be waiting to happen in India, but India will probably be more like the #hinese market with both standards coAexisting. &or now, 1$! rulesP

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INTRODUCTION

Air!e* 5$har!i Air!e* L!d.#

'harti "irtel +imited was incorporated on ?uly 0, 255: for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. 'harti "irtel is IndiaEs leading private sector provider of telecommunications services based on a strong customer base consisting of :; million total customers, which constitute, 88.> million mobile and :.8 million fixed line customers, as of !arch 42, 3;;0. "irtel comes to us from 'harti "irtel +imited A a part of the biggest private integrated telecom conglomerate, 'harti

*nterprises. 'harti provides a range of telecom services, which

22

include #ellular, 'asic, Internet and recently introduced .ational +ong (istance. 'harti also manufactures and exports telephone terminals and cordless phones. "part from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the -$". 'harti has also put its footsteps into Insurance and %etail segment in collaboration with !ultiA .ational giants. 'harti is the leading cellular service provider, with a footprint in 34 states covering all four metros and more than :; million satisfied customers. SER(ICES Airtel Prepaid "irtel 6repaid, the %eady #ellular #ard from "irtel comes to you from 'harti *nterprises, IndiaEs leading integrated telecom service provider. 1oing mobile with "irtel 6repaid is a new way of life. With a host of great features, also simple to use, "irtel 6repaid makes everything that you dreamt and believed, possible. T"!a* C"s! C" !r"* 7ou can control your "irtel 6repaid like never before. .o more rentals or deposits M simply recharge as much as you need to from as low as %s. 2;, to as high as %s. 2;,;;;DA.

23

6re a3!iva!ed STD7ISD .i!h"+! de,"si!s "r re !a*s 7ou can now enjoy a preAactivated $ (DI$( on your "irtel 6repaid. .o more paying deposits or having a minimum balance in your account to make an $ (DI$( call. =assleAfree calls are here to stayP S!r" ) Ne!."rk C"vera)e *njoy complete clarity when calling with "irtelHs worldAclass technology and unbreakable network coverage that spans over 34 circles across the country. I s!a ! $a*a 3e a d (a*idi!8 E 9+ir8 7our account balance is updated on the screen of your handset at the end of each chargeable call. 7ou can also call 234 from your mobile phone and listen to the voice announcement or simply dial Q234R, press E,/E or E7*$E button and your account balance will be displayed on the screen of your handset.

Re3har)e 8"+r Air!e* 6re,aid %echarging is *asy. he calling value on your card keeps

reducing as you make calls or use any other chargeable service. #hoose the "irtel 6repaid %echarge #oupon thatHs right for you, from a variety of tailorM made recharge coupons with different

24

denominations, which are available at a number of outlets across your city. $imply follow the procedure mentioned below, to recharge your phone.

6re,aid R"a/i ) "irtel 6repaid comes preactivated with E.ational %oamingE, so you stay connected no matter wherever you are. 7ou can also send or receive !!$, check your email and access other 16%$ services while roaming in India as you would in your own city. While traveling abroad you can receive calls S send or receive $!$. O!her Servi3es "irtel brings you, a wide range of $ervices that will change the way you communicate. ry them and discover a whole new world of fun and excitement. Ca** /a a)e/e ! Servi3es #all waiting, call hold, call divert and #aller +ine Identification 6resentation M all with your "irtel prepaid connection. ("i3e Mai*

25

When your handset is switched off, or youHre too busy to answer the phone, "irtel <oicemail will answer your calls and record a message. he best part is that thereEs no extra monthly cost for setting up <oicemail A you just pay for the phone call when you use the service. SMS 5Sh"r! Messa)i ) Servi3e# $end messages quickly and easily using text, if itEs too noisy to talk or you donEt have much time. ItEs the way to share those interesting oneAliners, important reminders and ribAtickling jokes, with anyone, anytime, anywhere in the world. S+bs3ri,!i" A*er!s

1et regular alerts on news, jokes, business, health and films on your "irtel mobile phone with $ubscription $ervices. $!$ T$-' .*W$U to 4444 for .ews, T$-' ?,/*U for ?okes, T$-' 'IVU for 'usiness .ews, T$-' $6,U for $ports "lerts S T$-' <""$ -U for <aastu tips. MMS 5M+*!i&/edia Messa)i ) Servi3e#: ?a)) up your messages with pictures, images and video clippings, with !!$ from "irtelP o activate !!$ on your phone, $!$ E!!$E to :>8>: and save service settings. Air!e* Live;

26

!ake your mobile the most happening entertainment destination with "irtel +iveP "irtel brings you the latest in entertainment and information services, right on your phoneP Air!e* Live; WA6 Servi3esG (ownload the latest ring tones, games, wallpapers, videos and much more. 7ou can also get news clips, watch live < and download full songs on you phone. o get "irtel +iveP settings on your phone, $!$ E+iveE to :>8>: and save the settings that you receive as your preferred connection. "irtel +iveP 6ortal can be accessed from you 16%$ enabled phone, by sending a $!$ E&-.E to :>8>:. Air!e* Live; ("i3e Servi3esG ?ust (ial :>8>:, and name the service. &or e.g. say ring tones to download your favorite ring tones. 7ou can also choose a variety of content options like +ive #ricket #ommentary, latest .ational D International .ews, !ovie %eviews or $tock !arket -pdates. Air!e* Live; SIM Servi3esG "ccess loads of fun content and exciting services like cricket, stocks, on your phone at the touch of a few buttons with "irtel +iveP $I! based $ervices on your $I! card menu. o download new services on your "irtel $I!, choose the FWhatEs newF option under the F"irtel servicesF menu. Air!e* Live; SMS Servi3es: 7ou can enjoy a host of services by sending a keyword as an $!$ to :>8>:P #hoose "strology D

27

=oroscope, #ricket, 'ollywood D =ollywood D Indi 6op %ing tones. In case you need assistance $!$, =elp to :>8>:.

28

%e**" T+ es ired of that boring old Wtring tringH on your phoneL Well now when a friend calls, you can make them groove to the hottest new tracks burning up the music charts with =ello unes from

"irtelP 7ou get a wide choice of songs in the 6opular S .ew "rrivals categories that are updated regularly. WhatEs more you can directly call the number for your kind of music, e.g. call >09;;: for *nglish .ew and >09;;2 for =indi .ew. his would

directly take you to your favorite artistEs =ello unes listing. C",8 a %e**" T+ e 1et the tune you want, all you have to do is call ::;:: and follow the simple voice instructions to copy your favorite =ello unes. ,nce inside the copy feature, just key in the 2;Adigit "irtel mobile number you want to copy the =ello une from and

you get the same =ello une assigned to your number. Gi-! a %e**" T+ e &orget gifting chocolates, flowers and greeting cards. $ay it with a song insteadP 1ift a =ello une to that special someone. ?ust call ::;:: and choose the song that you want to gift. &ollow the simple voice instructions and key in the 2;Adigit "irtel mobile number that you want to gift the =ello une to. 7ou will get an $!$ notification upon successful receipt of that gift.
29

$+8 M+si3 & Air!e* M+si3 Sh",s 'uying your favorite =ello une or %ing tone is as simple as

recharging your phone with talk time. $imply walk into your nearest "irtel $hop and walk out with your favorite song. #hoose from 'ollywood =its to Indipop %emixes, =ard %ock to 1ujrati 1arba, 'hajans to ?a)), 'hangra 'eats to foot tapping amil =its from a list of more than 29;;; songs. Rea3h +s A 8!i/e A 8.here In case you need assistance, dial E232E A our tollAfree number, accessible from anywhere in the country, even while roaming. 7ou can also send us an $!$ to 232 or mail us at

<=<>air!e*i dia.3"/. QIn case of email, mention your mobile no. like, ?@<22<=1AB, in the subject of the mail for a quicker response. Airtel Postpaid "irtel welcomes you to a vibrant world of unlimited opportunities. !ore exciting, innovative yet simple new ways to communicate, just when you want to, not just through words but ideas, emotions and feelings. o give you the unlimited freedom to

reach out to your special people in your special way.

30

Eas8 $i**i ) *njoy a host of rich features only with "irtel eAbill. %egister free on W!y "irtelH section and view your monthly bill with call details for last three months. $ort your calls between personal and official or analy)e your usage, at the click of a button. o change your tariff plan call our I<% at 232 and leave a request. Eas8 6a8/e ! O,!i" s. A 8!i/e A 8.here 7ou can choose from a host of convenient payment options only with "irtel. Walk into any "irtel relationship centre and make your payments by cash or credit card. (rop a cheque at any of the drop boxes for making payments or simply log on to !y "irtel section and pay instantly through your credit card. 7ou can also opt for easy payment options likeG S!a di ) I s!r+3!i" s 7ou can give us standing instructions to debit your credit card account for your monthly "irtel bills. "ll you have to do is fill the $tanding Instruction &orm and mail, fax it to us or drop it any of our relationship centres.

31

E*e3!r" i3 C*eari ) S8s!e/ &ill an *#$ form and mail, fax it to us or drop it any of our relationship centres to directly debit your bank account for your monthly "irtel bill. 6a8 .hi*e r"a/i ) "irtel has introduced E"nywhere paymentE that offers you the convenience of making payments while you roam. Walk in to any "irtel %elationship #entre in the country, make payments by cash or credit card and enjoy uninterrupted "irtel $ervices. Credi! *i/i! 7our preAset credit limit mentioned on your monthly bill helps you keep your mobile charges in control, keeps track of your usage and ensures that your mobile phone is not misused. $hould you exceed your credit limit, you will be informed via a voice or a nonAvoice message to make an interim payment and reduce your account balance below your credit limit. 7ou may also choose to pay us an additional refundable deposit to enhance your credit limit or opt for our convenient payment method of #redit #ard $tanding instruction .7ou can also make use of *#$ facility.

32

S!r" ) Ne!."rk C"vera)e *njoy complete clarity when calling with "irtel .It offers you world class technology and unbreakable network coverage that spans over 34 circles across the country. L" ) Dis!a 3e Ca**i ) Fa3i*i!8 #all long distance calls in India and ,verseas with $ ( D I$( facility on your "irtel phone. Wides! R"a/i ) & Na!i" a* a d I !er a!i" a* "irtelEs roaming service allows you to stay connected and use your mobile phone to make or receive calls from almost anywhere in India and also over 2>; countries, abroad. G6RS & R"a/i ) -se "irtel 6ostpaidEs 16%$ services, while roaming, to access the internet and office mails (eg. 'lack'erry servicesC, from almost anywhere in India and abroad. Sa8 i!. I /"re !ha C+s! ."rds, .i!h Servi3es -r"/ Air!el

"irtel brings you a wide range of $ervices that will change the way you communicate. ry them and discover a whole new world of fun and excitement.

33

Ca** /a a)e/e ! Servi3es #all waiting, call hold, call divert and #aller +ine Identification 6resentation, help you do more with your "irtel 6ostpaid connectionP C" -ere 3e 3a** 7ou can hold a teleconference with : people simultaneously with #all #onferencing service from "irtel. In fact, you can set up a conference even when the other five are using a landline phone. o know more, call customer service at 232. Missed 3a** a*er! " missed call alert is a $!$ that you will receive for all the calls that you missed. he $!$ will detail the #+I and the time when o activate, dial Q24:Q3R then press the call

the call was made.

button and wait for the request to be completed. ("i3e Mai* When your handset is switched off, or youHre too busy to answer the phone, "irtel <oicemail will answer your calls and record a message. he best part is that thereEs no extra monthly cost for setting up <oicemail A you just pay for the phone call when you use the service.

34

SMS 5Sh"r! Messa)i ) Servi3e# $end messages quickly and easily, using text, if itEs too noisy to talk or you donEt have much time. ItEs the way to $hare those interesting oneAliners, important reminders and ribAtickling jokes, with anyone, anytime, anywhere in the world. S+bs3ri,!i" A*er!s

1et regular alerts on news, jokes, business, health and films on your "irtel mobile phone with S+bs3ri,!i" Servi3es. $!$

T$-' .*W$U for .ews, T$-' ?,/*U for ?okes, T$-' 'IVU for 'usiness .ews, T$-' $6,U for $ports "lerts S T$-' <""$ -U for <aastu tips to 4444. MMS 5M+*!i&/edia Messa)i ) Servi3e#: ?a)) up your messages with pictures, images and video clippings, with !!$ from "irtelP o activate !!$ on your phone, $!$

E!!$E to :>8>: and save service settings. Air!e* Live; !ake your mobile the most happening entertainment destination with "irtel +iveP "irtel brings you the latest in entertainment and information services, right on your phoneP

35

Air!e* Live; WA6 Servi3esG (ownload the latest ringtones, games, wallpapers, videos and much more. 7ou can also get news clips, watch live < and download full songs on you phoneP o get "irtel +iveP settings on your phone $!$ E+iveE to :>8>: and save the settings that you receive as your preferred connection. "irtel +iveP 6ortal can be accessed from you 16%$ enabled phone, by sending a $!$ E&-.E to :>8>:. Air!e* Live; ("i3e Servi3esG ?ust (ial :>8>: and say the name of the service. &or e.g. say W%ing tonesH to download your favourite ring tones. 7ou can also choose a variety of content options like +ive #ricket #ommentary, latest .ational D

International .ews, !ovie %eviews or $tock !arket -pdates. Air!e* Live; SIM Servi3esG "ccess loads of fun content and exciting services like cricket, stocks, on your phone at the touch of a few buttons with "irtel +iveP $I! based $ervices on your $I! card menu. o download new services on your "irtel $I!, choose the FWhatEs newF option under the F"irtel servicesF menu. Air!e* Live; SMS Servi3es: 7ou can enjoy a host of services by sending a keyword as an $!$ to :>8>: P #hoose "strology D =oroscope, #ricket, 'ollywood D =ollywood D Indi 6op %ing tones. In case you need assistance $!$ W=elpH to :>8>:.

36

G6RS 5Ge era* 6a3ke! Radi" Servi3es# +og on to the internet, with 16%$ that allows data transmission at a higher speed. "ccess eAmails and internet across "irtelEs panAIndia presence using E!obile ,fficeE with your phone or a phone and laptop both. Ge! !he EDGE 'rowse the internet on your mobile phone with "irtelEs *(1* services. *njoy live <, enhanced W"6 experience and "irtel

(ata #ards on our high speed network. %e**" T+ es ired of that boring old Wtring tringH on your phoneL Well now when a friend calls, you can make them groove to the hottest new tracks burning up the music charts with =ello unes from

"irtelP 7ou get a wide choice of songs in the 6opular S .ew "rrivals categories that are updated regularly. WhatEs more, you can directly call the number for your kind of music, e.g. call >09;;: for W*nglish .ewH and >09;;2 for W=indi .ewH. his would directly take you to your favourite artistEs =ello unes listing.

37

C",8 a %e**" T+ es +ike a tune you want, all you have to do is call ::;:: and follow the simple voice instructions to copy your favourite =ello unes.

,nce inside the copy feature, just key in the 2;Adigit "irtel mobile number you want to copy the =ello une from and you

get the same =ello une assigned to your number. Gi-! a %e**" T+ es &orget gifting chocolates, flowers and greeting cards. $ay it with a song insteadP 1ift a =ello une to that special someone. ?ust

call ::;:: and choose the song that you want to gift. &ollow the simple voice instructions and key in the 2;Adigit "irtel mobile number that you want to gift the =ello une to. 7ou will get an

$!$ notification upon successful receipt of that gift. $+8 M+si3 & Air!e* M+si3 Sh",s 'uying your favourite =ello une or %ingtone is as simple as

recharging your phone with talktime. $imply walk into your nearest "irtel $hop and walk out with your favourite song. #hoose from 'ollywood =its to Indipop %emixes, =ard %ock to 1ujrati 1arba, 'hajans to ?a)), 'hangra 'eats to foot tapping amil =its from a list of more than 29;;; songs.

38

Rea3h +s, A 8!i/e A 8.here In case you need assistance, dial E232E A our tollAfree number, accessible from anywhere in the country, even while roaming. QIn case of email, mention your mobile no. like ?@<22<=1AB in the subject of the mail for a quicker response.

TARIFF

STRUCTURE
6re,aid Tari--s

"irtel 6repaid %eady #ellular #ard and %echarge #ards are available, all over the city at over retail outlets including 38Ahour outlets. "irtel 6repaid %eady #ellular #ard and %echarge #ards are available, all over the city at over retail outlets including 38A hour outlets.

39

Air!e* 6re,aid Re)+*ar

AA? SUK 6+*se Ra!e 6ri3e "- 6a3k 5Rs.# Free Air!i/e " 6a3k 5Rs.# >; sec %s.885 .il &ree while in home network "irtel LOCAL RATES 5Rs.7/i # STD RATES 5Rs.7/i # ISD 5Rs.7/i # -$", #anada, *urope (&ixed +ineC, "ustralia, $ingapore, =ong /ong, hailand, !alaysia, Indonesia, .ew Vealand. 1ulf, *urope (!obileC, $""%# countries, "frica S %est of the world #uba, $ao ome S 6rincipe, 1uinea 'issau, (iego 1arcia, .auru, $olomon Islands, <anuatu, #ook Islands, uvalu, okelau, .orfolk Island, $akhalin SMS 5Rs.# +ocal .ational International O!her De!ai*s %s.2.3; %s.3.;; %s.:.;; %s.>.8; %s.2.3; %s.3.0: 1$! D #(!" (2; (igitC %s.3.;; %s.3.0: +andline D W++ %s.3.8; %s.3.0:

I 3"/i ) Ca**s 5Rs.#

%s.5.3;

%s.8;.;;

Q%s :; +ocal "irtelA"irtel !obile talktime per month for > months Q &irst month "irtelA"irtel credit within 03hrs of activation S balance credit by 2st week of eve monthC Q he $!$ charge as applicable is per 2>; characters Q <alidityA 38 months.

40

6OST6AID "irtel 6ostpaid allows you to choose from a variety of affordable talk plans, convenient payment options and host of rich features. $o get set to enjoy a world of limitless possibilitiesP Re-ere 3e Tari- 6a3ka)es 5RT6# ON TIME C%ARGES "ctivation #harges %s. 3:; !embership &ee %s. 3:; $ecurity (eposit ." MONT%LY C%ARGES 5FI'ED# %s. :38 'ill plan #harge %s. 888 !onthly %ental %s. 2:; #lip ." MONT%LY C%ARGES 5O6TIONAL# #lip %s. 55 "irtel

1$! (igitC %s 2.55

D +andline D

#(!" (2; W++ L"3a* Ra!es %s. 2.55 STD RATES :; M 3;; /m 3;; M :;; /m :;; X /m ISD -$", #anda, *urope (&ixed +ineC, %s. 0.3; "ustalia, $ingapore, =ong /ong, hailand, !alaysia, Indonesia, new Vealand 1ulf, *urope world #uba, 1uinea (!obileC, $""%# %s 5.55 %s 2.55

#ountries, "frica S %est of the $ao tome S (iego 6rinciple, %s. 8;.;; 1arcia,

'issau,

.auru, $olomon Islands, <anuatu,

41

#ook

Island,

uvalu,

okelau,

.orfolk Island, $akhalin SMS +ocal .ational International <alue "dded $ervices (%s.C Air!e* O e S!a dard <B2 ONE TIME C%ARGES "ctivation #harges !embership &ee

%s. %s. %s. %s.

2.;; 3.;; :.;; 4.;;

%s 3:; %s 3:; (#onverts into security

after 38 monthsC $ecurity (eposit ." MONT%LY C%ARGES 5FI'ED# %s. 2:; 'ill 6lan #harge %s. :; !onthly %ental %s. 2:; #lip ." MONT%LY C%ARGES 5O6TIONAL# #lip %s. :; 'issau, (iego 1arcia, .auru, $olomon Islands, <anuatu, #ook Islands, uvalu, okelau, .orfolk Island, $akhalin SMS +ocal .ational Intentional <"$

%s 2.;; %s 3.;; %s. :.;; %s. 4.;;

his 'ill 6lan is also available under "dvance %ental of %s. 055 for 3 years.

+ocal 6ack "irtel to other local mobiles (non "irtelC "t %s 2 D min

M" !h*8 re !a* Rs =B ,er /" !hs7& STD 6a3k

42

"irtel to other mobiles (non "irtelC S fixed lines nos. at %s 3 D min.

M" !h*8 re !a* Rs DB ,er /" !h7& S,e3ia* "--er -"r Air!e* Te*e,h" e servi3e 3+s!"/ers

-"r avai*i ) Air!e* M"bi*e servi3es If you already have "irtel elephone service, you can buy a new "irtel !obile connection under "irtel ,ne $tandard 2:; 6lan.

$e e-i!s:

.on security deposit. .o membership D activation fee *njoy calls to your "irtel fixed line no. at just :; 6 D min. !onthly rent of %s 3: for reduced call rates to your "irtel

fixed line has been waived off for 2 year.

&or details, call us :2>A2348: Adva 3e Re !a* be e-i!s 5<8ear s3he/e# 6ay an advance rent of %s 855 and enjoy "irtel ,ne $tandard 2:; plan at Vero monthly rental for one year. "dvance rental of %s 855 gives you a rental discount of %s 2:; every month for the next 3 months. "ll other options and charges are as per the existing "irtel ,ne $tandard 2:; 6lan.

43

Air!e* " e S!a dard =?? ONE TIME C%ARGES "ctivation #harges !embership &ee %s 3:; %s 3:; (#onverts into security after 38 monthsC ." %s 355 %s. 2:; %s. 355 ." 1$! (igitC %s. 2.;; %s. 3.8; %s. 3.8; %s. 3.8; D +andline D

$ecurity (eposit MONT%LY C%ARGES 5FI'ED# 'ill 6lan #harge !onthly %ental #lip MONT%LY C%ARGES 5O6TIONAL# #lip %s. :; "irtel

#(!" (2; W++ LOCAL RATES STD RATES :;A3;;/m 3;; M :;; /m :;; X /m ISD -$", #anda, *urope (&ixed +ineC, "ustalia, $ingapore, =ong /ong, hailand, !alaysia, Indonesia, new Vealand 1ulf, *urope world #uba, 1uinea #ook (!obileC, $""%# %s 5.55 %e. 2.;; %s. 3.;; %s. 3.;; %s. 3.;; %s. 0.3; %s. 2.;; %s. 3.8; %s. 3.8; %s. 3.8;

#ountries, "frica S %est of the $ao tome S (iego uvalu, 6rinciple, %s. 8;.;; 1arcia, okelau,

'issau, Island,

.auru, $olomon Islands, <anuatu, .orfolk Island, $akhalin SMS +ocal .ational

%s. 2.;; %s. 3.;;

44

International <alue "dded $ervices (%s.C

%s. :.;; %s. 4.;;

7ou also enjoy 3: &%** local mobile to mobile $!$

45

Se i"r Ci!iEe

6*a

ONE TIME C%ARGES "ctivation #harges !embership &ee $ecurity (eposit MONT%LY C%ARGES 5FI'ED# 'ill 6lan #harge Monthly Rental #lip #uba, $ao ome S 6rinciple, 1uinea #ook 'issau, Islands, (iego uvalu, 1arcia, okelau, .auru, $olomon Islands, <anuatu, .orfolk Island, $akhalin SMS +ocal .ational International <"$ With $enior #iti)en 6lan

%s. 3:; %s. 3:; (#oncerts into security deposit after 38 monthsC ." %s. 2:; %s. :2 %s. 55 ."

Rs. 1.50 %s. 3.;; %s. :.;; %s. 4.;;

46

7ou can take 4 &riends and &amily numbersG "irtel to "irtel (2local no.C M %s. ;.: D min. "irtel to "irtel (2 $ ( no.C M %s 2.: D min I$( calls to -$ D #anada D $outh *ast "sia D "ustralia D .ew

VealandC M %s. 5.55 D min

7ou also get &%** alert subscription worth %s 4; D alert or 4 months onG

.ews "strology =ealth ips

he $!$ charges as applicable is per 2>; #haracters.

47

6ROMOTIONAL STRATEGY
Air!e* !" FT"+3h T"/"rr".G .i!h a e. bra d visi"

he 'harti !obile promoted "ir el cellular service will go in for repositioning of its brand image. he new brand ethos is

portrayed in two distinct fashions A the tag line F ouch omorrowF, which underscores the leading theme for the new brand vision, followed by F he 1ood +ifeF, which underscores a more caring, more customer centric organi)ation. "imed at reA engineering its image as just simply a cellular service provider to an all out information communications services provider, ouch

omorrow is meant to embrace the new generation of mobile communication services and the changing scope of customer needs and aspirations that come along with it he new communication is about a new dimension in the cellular category that goes beyond the Internet, $!$, roaming, I<%$, etc but which engulfs the whole gamut of wireless digital broadband services that will constitute tomorrows cellular services. he new campaign is in two phases A the first of which will communicate overall brand philosophy and the second products and services. "ccording to !r. ?agdish /ini, #hief ,perating ,fficer, 'harti !obile +imited, /arnataka FWe are adopting a new brandA

48

platform A

ouch

omorrow A not only to reflect our corporate

ethos but also business strategyF. he new identity will have the logo in %ed, 'lack and White colours along with lower case typography to convey warmth. AirTe* will incorporate the latest branding in all of its

communication and will soon be going in for an enhanced promotional drive to establish the brandEs presence. LIFE TIME 6LAN 6%*A6"I( card users need not worry anymore about recharging their coupons every month. #ompany has launched a plan that allows users to take a preApaid connection with lifetime validity for a one time payment of %s. 555. $ubscribers availing themselves of this scheme will also get full talk time for the recharge coupon they purchase and also have the option to buy aiwanese manufactured 'ird mobile handsets for as low as %s. 2,455. he move is aimed at stopping the churn in the preApaid subscriber base. ,nce a subscriber takes this plan, he will always be an "irtel subscriber whether the mobile is being used or not.

49

MARKET SITUATION

A! !he !i/e "- *a+ 3h he first mover in the market was "irtel which launched its services in (elhi in "ug 255: (Informal launchC. *ssar #ellphone followed by launching its services informally in ,ct 5:. "t this point of time, the market was at a nascent stage, awareness level was low and both operators independently tried to spread awareness and educate the people ,nce the networks were commercially launched, it became a number game with a multitude of schemes being offered to woo customers Initially the cellphone was perceived as a status symbol and utility took a back seat he target segment in (elhi he average his coupled with

were corporate and the high income group. capacity installed was for 2.: lakh subscribers. the steep license fee paid to (,

put pressure on the operators In the first

to breakAeven by rapidly expanding their markets.

two years, this led to a number of schemes being offered and prices crashing.

50

COM6ETITI(E SITUATION
"irtel launched its services before *ssar and skimmed the market picking up the bulk of the high usage premium clients. his is a very competitive industry with the two companies differentiating either on valueAadded services or price. "irtel is perceived as the high quality provider and has a premium image. *ssar, on the other hand, is perceived as the lower end service provider. "irtel positions itself as the market leader on the basis of the number of subscribers. *ssar is trying to counter this by emphasising on the reach of its network and the quality of its service. =owever, *ssar is somewhat not been very successful largely due to the inconsistency in advertising o promote themselves, both the players have been dependent on tactical advertising =owever, they have restrained from using comparative advertising =oardings have been a very popular medium for carrying the advertisements "irtel has also been advertising on television using the 'harti elecom name. SALES DE6ARTMENT AND STRATEGY A. MaC"r A33"+ !s 5Dire3! Cha e*#

=andles corporate (named and famedC accounts &orecasting of sales !apping the accounts 6roviding after sales support to the subscribers.

51

!aintaining call reports for records. 6roviding &eedback to the marketing department regarding the requirement of the market.

$. IDC 5i dire3! Cha C.

e*#

=andling distribution !aintaining records and level check of the channel partner +iaisoning between the channel partner and the company. arget achievement raining the executives of the channel Dis!rib+!i" S+,,"r!

<.

L")is!i3s !onitor handset and $I! card requirements of channel partners and coAordinate with stores $ettle areas of concerns such as incentive claims of channel partners

=. 3

Re !a* 6rovide cellular services ($I! cardsC on rent. 6rovide cellular phones on rent -seful for people visiting (elhi for a short interval. Telesales #all customers and generate sales lead. &ollow up with the customers, if they need any assistance

52

6ass on the sales lead to the channel department. A+di! #onsultant to the "ir el showrooms. !onitor the operations at the "ir el distribution outlets ,rgani)e training.

B.

Re!ai* +ocate shops to open retail counters. !onitor the retail counters.

MARKET SEGMENTATION $egmentation is beneficial because of better predictability of the target consumer group, minimi)ation of risk exposure, better ability to fineAtune a product D service to the requirement of target buyer and the resultant ease in designing a proper designing marketing mix strategy In this case segmentation is on the bade of income. In evaluating different market segments the company looks at two factors he overall attractiveness of the segments and the he present market for

companyEs objectives S resources

#ellular phones, pagers and conventional phones is as follows

#ellular 6hones 6ager #onventional 6hones

6remium -pper +ower O O O O O O

!iddle -pper O O O

+ower A O O

*conomy -pper +ower A A A A O A

53

O !arket $egment argeted

TARGET MARKET SEGMENT

"irtel has targeted the premium and upper middle class. he

rationale behind it is that only those segments should be targeted who value time and have the paying capacity. It Is also planning to target the business tourists during their stay in the capital "bout >;B of the clientele are top executives of corporate houses. "bout 2:B are foreign organisations and the rest are professionals and small businessmen. (uring the introduction

stage there was intense pressure to get consumers across to hook up with their brand, because getting them to switch brand loyalty later would be hard $o far "irtel marketers have been concentrating totally on the business executive class but now that the basic viable volumes has beerC built up and prices have declined to a certain extent they are planning to venture further a field.

6OSITIONING he product is sought to be positioned as a business efficiency tool. a lifestyle revolution and a status symbol he emphasis is to remove misconception that the cellphone is an expensive means

54

of communication and drive home the point that the cellphone is actually a dayAtoAday utility

6RODUCT 6OLICY AND 6LANNING he product or service is the heart of the marketing mix. Without a product or a service customersE needs cannot be satisfied. he basic product promise by "irtel is mobility. "irtelEs main It has

marketing strategy is to be a first mover all the time.

recognised the significance of making the first moveAA because in the field of #ommunication S Information occur at a tremendous pace. *ffective product segmentation has to be carried on continuously because basic services can be and will be copied and in time become expected component of the product. "irtel seeks to carry out this segmentation through provision of new information services and making new facilities available. he product policy echnology changes

and planning depends on the stage of the product life cycle. "t present the cellular phone market has reached the maturity stage. $ince, the premium segment is nearing saturation the

company targeting the upper middle and middleAmiddle class. In order to do so "irtel is trying to optimise the price performance package by offering suitable Fproduct bundlingF.

55

his involves the selection of the suitable hardware (handsetC and its software (its services.C with reasonable price in order to deliver maximum price performance to its customers. In

addition, it offers free "irtime services and other concessions to make the prices and thus the product more attractive. also opened a 38 hours customer service. ,nly price doesnEt serve as an effective differentiator, value added services become the effective differentiator. The H(a*+e Added Servi3esH ,r"vided -r"/ Air!e* areGA 2C. <oice !ail service his system is similar to the answering machine A if the user is not able to answer a call for some reason the caller can leave messages in the voice mail box which can be later retrieved by the user It has

iiC $hort !essage $ervice he short message service is like a twoAway pager. It gives an option of sending and receiving text messages directly from one mobile phone to another without the intervention of an operator.

iiiC !obile &ax 2 (ata $ervice

56

his service helps the subscriber to send and receive &axes, access *Amail, download computer files from other systems and remotely log on to another computer and surf the Internet.

ivC #ash #ard he cash card is a preApaid and preAactivated card which allows the buyers to buy air time in advance. payment of an initial amount. "ll it requires is the

his is a useful service for people

who travel to (elhi often and those who want to control the expenses on their calls. vC #aller I( (isplays calling personEs number. viC ,utgoing call restriction o prevent or limit outgoing calls, for example, in peak hours. "lso possible to exclude one or several countries, or any geographical region, to permit only local calls, or to limit the outgoing calls to a listed number. viiiC #all forward Incoming calls can be forwarded to another fixed or mobile phone. 'esides these some other services provided by "irtel are A #all conferencing, #all 'roadcast et cetera.

57

It is in the operators AInterest that they not only get many subscribers but also get them to use the mobile facility frequently. In the early stages getting increases to subscribe

may be easier than getting them to talk since they will find it costlier to use the mobile phone as compared to a conventional phone Yif is believed that initially cellphones would be used buyZ viiiC %oaming &acility %oaming facility is available while the subscriber is travelling. he billing is done in the home network ((elhiC. %oaming facility is available manuallyQ as well as semiAautomatically. ,nce a

subscriber is In any other city or country, where a 1$! network is available, simply insert the $I! card of the local operator Into your handset and start talking. Q !anual %oaming means a separate $I! card is provided for each city QQ $emi automatic roaming means one card has the facility for different cities.

AIRTELIS MARKETING ORIENTATION.

$ince this is a highAinvolvement expensive product, the service provider has to fully take care of the customers. aC hey take personal responsibility to FgetF the answer for any problem faced by the customer

58

b)

hey anticipate customersE problems and take proAactive steps to prevent them

cC

hey give answers to the questions S requests, quickly S efficiently.

dC

hey have a positive tone S manner while interacting with customers.

eC

hey end the interaction on a positive or a humorous noteA making the last 4; seconds count.

"irtel realises that attracting people EIs easy but converting them into loyal customers is hard, hence emphasis is on maintaining a E$miling and a &riendly "tmosphereE to please and retain the customer.

6RICE AND 6RICING 6OLICY

"I% *+ has realised that the Indian market is price sensitive. herefore it care of the has come up with various innovative tariff schemes to take needs of different category of customersA 1enerally, the cellular services are more expensive than the land line based telephone services. operating companies are his is due to the reason that the to pay a fee to the

required

government for using airtime.

59

MARKETING STRATEGY ADO6TED $Y $%ARTI

'harti has spent a considerable amount on advertising its mobile phone service, "irtel. 'esides print advertising, the company

had put up large no of hoardings and kiosks in and around (elhi. he objective behind designing a promotion campaign for the W"irtelH services is to promote the brand awareness and to build brand preferences. It is trying to set up a thematic campaign to build a stronger brand equity for "irtel. $ince the cellular phone category itself is too restricted, also the fact that a #ellular phone is a high involvement product, price doesnEt qualify as an effective differentiator. he image of the service provider counts a great

deal. 1iven the #ell phone category, it is the network efficiency and the quality of service that becomes important. What now

the buyer is looking at is to get the optimum priceAperformance package. his also serves as an effective differentiator

'rand awareness is spread through theE campaigns and brand preference through brand stature. "irtelEs campaign in the

capital began with a series of EteaserE hoardings across the city,E bearing just the companyEs name and without explaining what "irtel was. In the next phase the campaign associated "irtel with #ellular only thereafter was the 'harti #ellular connection
60

brought up. <ans with "irtel logos roamed the city, handing out brochures about the company and its services to all consumers. "bout :;,;;; direct callers were sent out. When the name was well entrenched in the (elhiitesHs mind, the "irtel campaign began to focus on the utility of #ellphone. In the first four

months alone "irteiEs advertisement spend exceeded %s. 8 crores. "s of today the awareness level Is >;B unaided. his implies

that if potential or knowledgeable consumers are asked to name a #ellular phone service provider that is on the top of hisDher mind >;B of them would name "irtel. "s for aided it Ais 2;;B (by giving clues and hints etc.C. 'rand strength of a product or the health of a brand is measured by the percentage score of the brand on the above aided and the unaided tests. thriving brand. *very company has a goal, which might comprise a sales target and a game plan with due regard to Its competitor. "irtel Es he figures show that "irtel is a healthy and a

campaign strategy is designed keeping in mind its marketing strategy. he tone, tenor and the stance of the visual ads are

designed to convey the image of a market leader in terms of its market share. It tries to portray the image of being a Ffirst

mover every timeF and that of a Fmarket leaderF.

61

he status of the product in terms of its life cycle has just reached the maturity stage in India. It is still on the rising part of the product life cycle curve in the maturity stage. he diagram on the left hand side shows the percentage of the users classified into heavy, medium and low categories. he

right hand side shows the revenue share earned from the three types of users. "irtel, keeping in mind the importance of the customer retention, values its heavy users the most and constantly indulges in service innovation. 'ut, since heavy users comprise only 2: A

3;B of the population the other segment cannot be neglected. he population which has just realised the importance of cellular phones has to be roped in. It is for this reason that the service provider offers a plethora of incentives and discounts. #oncerts like the F&reedom concertF are being organised by "irtel in order to promote sales. mind. he media channel is chosen with economy in

he target segment is not very concrete but, there is an those who can afford. he print

attempt to focus on

advertisements and hoarding are placed in those strategic areas which most likely to catch the attention of those who need a cellular phone. he product promise (which might cost different

2 higherC is an important variable in determining the target audience.

62

'esides this, other promotional strategies that "irtel has adopted are . (iC 6eople who have booked "irtel services have been treated to exclusive premiers of blockbuster movies. "irtel has tied up with +ufthansa to offer customer bonus miles on the 1erman airlines frequent flierEs programs. (iiC here have been pre educational launch campaigns, image launch

campaigns,

advertisements,

advertisements,

congratulatory

advertisements,

promotional advertiseAments, attacking advertisements and tactical advertisements.

63

DISTRI$UTION
#ompany

&ranchisee

(istributor

(ealer

(ealers

#ustomer

#ustomer

heA company whose operations are concentrated in and around (elhi. It 30 &ranchisees and 2: (istributorsA hey also have 9

Einstant access cash card countersA *ach franchises or distributor can have any number of dealers under him as long as the person is approved by the "irtel authority. *ach franchises has to invest %upees en +akhs. to obtain a franchise and should employ an his person acts as an liaison between he franchises can it any

officer recruited by "irtel.

the company and the franchises.

number of dealers as long as their territories do not overlap. 'ut unfortunately "irtel has not been very successful in controlling territorial overlaps of dealers. he franchises can carry out his 2

her own promotional strategy. &or this the. company contributes

64

0:B of the money and the franchises contributes 3:B of the money. he dealers under the franchisee receive the same he franchises and the dealer obtain the feedback

commission.

from the customers and they are sent through the liaison officer on a dayAtoAday basis to "irtel. he dealer has to invest %upees. he dealer of "irtel are not

,ne +akh as an initial investment.

allowed to provide any other operatorsE service. arget set for distributors and the dealers is 2;; A2:; activations per month. =ence the dealers can also go for their own he

promotions like banners and discounts on festivals etc. dealer provides service promptly.

he consumer on providing

the bill of purchase for the handset and proof of residence has only to wait an hour before getting connected. he staff of the

dealers and the franchisees are provided training by the "irtel personnel. he complaints encountered by the franchisees and dealers are either handset being nonAfunctional or the $I! #ard not getting activated. "nything more complicated is referred to the main "irtel office in (elhi.

65

W%AT DOES AIRTEL OFFER4

With "irtel, the subscriber wouldnEt just get a personal phone that lets himDher be in touch, always, but also gets a host of benefits that let himDher manage hisDher time like never before. "n "irtel subscriber is provided with a $ubscriber Identity !odule #ard ($I! cardC A that is the key to operating hisDher cellular phone. =is card activates "irtel cellular services and contains a complete microAcomputer chip with memory to enable one to enjoy oneEs cellular phone thoroughly. *ach $I! card contains a 6I. code (6ersonal Identity .umberC which may be entered by one. ?ust plug your $I! card into your cellular phone, enter the 6I. code and it becomes EyourE personal phoneE. 6RODUCT LIFE CYCLE he pattern of cellphone subscriber growth observed elsewhere in the world reveals that the growth in the market is Initially slow followed by a sharp acceleration, but so far that has not happened in India. "s far as the 6roduct +ife #ycle is concerned. Indians are at the beginning of the maturity stage.

66

I !r"d+3!i"

Gr".!h

Ma!+ri!8

MARKETING O$JECTI(ES
#reate product awareness and trial !aximise market share !aximise profits whole defending market share S!ra!e)ies 6r"d+3! ,ffer a basic productD service. ,ffer value added services Increase in number of value added services. 6ri3e #harge costA plus 6rice to penetrate market Dis!rib+!i" 'uild selective distribution 'uild Intensive distribution. 6rice to match or best competitors 'uild more intensive distribution. Adver!isi ) 'uild product awareness among early adopters and dealers. Sa*es -se heavy sales Increase to Increase to 'uild awareness and interest in the mass market $tress brand differences and benefits.

67

6r"/"!i"

promotion to entice people to subscribe.

build and maintain relationships with customers.

encourage brandA switching.

68

O$JECTI(ES OF T%E STUDY

ObCe3!ivesG
o study the importance and development of tele M

communication industry in todayHs scenario. o understand the various !arketing $trategies which "irtel has adopted to survive in highly competitive cell phone industry. o make a comparative study of the major players in Indian $ervice 6rovider.

69

RESEARC% MET%ODOLOGY
he methodology adopted for this project is exploratory in nature since there is no hypothesis that has to be tested. conclusions have been drawn by exploratory research work. here have been two sources of information collectedG aC 6rimary $ources I have met retailers of the "irtel of the company and have been able to get first hand information regarding the product, its features and the buying patterns of the product. been valuable. bC $econdary $ources $econdary source has played a vital role to play in this report. " good amount of data has been collected from various published articles and reports found in maga)ines and journals. "nother vital source has been the Internet and particularly the companies own website. heir input has he

70

LIMITATIONS
*very attempt will be taken to obtain the error free and meaningful result but as nothing in this world is 2;;B perfect I believe that there will still the chance for error on account of following limitationsA (2C (3C %espondentHs unavailability. ime pressure and fatigue on the part of respondents and interviewer. (4C #ourtesy bias.

71

FINDINGS
<. D" 8"+ be*ieve !ha! I dia is ,"!e !ia**8 " e "- !he /"s! eK3i!i ) /"bi*e servi3e ,r"viders i C"/,a 8 Air!e* ("da-" e Idea MTNL Yes A A 8 8 !he ."r*d4 N" < < 2 2

"s according to the above table 2> (9;BC out of the total 3; interviewed people in all the above four specified Indian mobile service providers are of belief that India is potentially one of the most exciting mobile service providers in the world, whereas some 8 (3;BC of them do not agree to this view.

No

1 0

Yes

4 2 4

4 6 AirTel 8 Vodafone

4 10 Idea 12 MTNL

4 14 16 18

72

=. D" 8"+ -i d !ha! !he )"ver /e !0s !e*e3"/ ,"*i38 has had !he /"s! radi3a* i/,a3! " /"bi*e servi3e ,r"viders4 C"/,a 8 Air!e* ("da-" e Idea MTNL Yes A 1 4 : N" < = 3 AA !he deve*",/e ! "-

"s according to the above table 2: (0:BC out of the total 3; interviewed people in all the above four specified Indian mobile service providers find that the governmentHs telecom policy has had the most radical impact on the development of mobile service providers, whereas some : (3:BC of them deny this.

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Yes No AirTel Vodafone Idea MTNL

73

1. D" 8"+ be*ieve !ha! " e "- !he 3ha**e )es -a3i ) /"bi*e ",era!"rs i re)i" s4 C"/,a 8 Air!e* ("da-" e Idea MTNL Yes = 1 4 3 N" 1 = 3 4 I dia is !he diversi!8 "- !he 3"vera)e

"s according to the above table 2; (:;BC out of the total 3; interviewed people in the mobile service providers are of belief that one of the challenges facing mobile operations in India is the diversify of the coverage regions, whereas interestingly another 2; (:;BC of them deny this.

3 2.5 2 1.5 1 0.5 0 Yes No AirTel Vodafone Idea MTNL

74

A. T" .ha! eK!e !, d"es 8"+ -i d !ha! /"bi*e servi3e ,r"viders is a ver8 3"/,*eK s!a dard4 C"/,a 8 Air!e* ("da-" e Idea MTNL T" s"/e eK!e ! 5<&B# 1 = 3 4 T" )rea! eK!e ! 5L&<2# = 1 4 3

"s according to the above table 2; (:;BC out of the total 3; interviewed people in all the above four major the mobile service providers in Indian #ellular industry find only to some extent that 1$! is a very complex standard, whereas the another 2; (:;BC respondents find to great extent that mobile service providers is a very complex standard.

3 2.5 2 1.5 1 0.5 0 To some extent To great extent AirTel Vodafone Idea MTNL

75

CONSUMER LE(EL
<. D" 8"+ be*ieve !ha! /"bi*e servi3e ,r"viders 3"/es 3*"se !" -+*-i**i ) !he re9+ire/e !s -"r a ,ers" a*

3"//+ i3a!i" C"/,a 8 Air!e* ("da-" e Idea MTNL

s8s!e/4 Yes ? @ 9 : N" < = 3 :

"s the above shows 4; (0:BC out of total 8; respondents are of the belief that mobile service providers comes close to fulfilling the requirements for a personal communication system, whereas 2; (3:BC of them are in no way to this belief.

3 2
No

2 2 MTNL Idea Vodafone 2 AirTel 3 3 3

Yes

76

=. D" 8"+ -i d !ha! /"bi*e servi3e ,r"viders as !he /"s! eK3i!i ) a d sa!is-8i ) /"bi*e s!a dard4 C"/,a 8 Air!e* ("da-" e Idea MTNL Yes ? D 9 9 N" < 1 3 3

"s the above shows 43 (9;BC out of total 8; respondents find that mobile service providers as the most exciting and satisfying mobile standard, whereas the remaining 9 (2;BC respondents deny this.

No

1 0

Yes

9 5 10

AirTel

7 15 Vodafone

Idea

8 20 MTNL 25

8 30 35

77

1. D" 8"+ be*ieve !ha! 8"+r servi3e ,r"vider has a )e +i e 3"//i!/e ! !" 3rea!i ) a /"der 3"//+ i3a!i" s4 C"/,a 8 Air!e* ("da-" e Idea MTNL Yes <2 @ 2; 9 N" && = AA 3 a d e--i3ie !

"s the above shows 4> (5;BC out of total 8; respondents are of the belief that their service providers have a genuine

commitment to creating a modern and efficient communications whereas the remaining 8 (2;BC respondents deny this.

2 0
No

2 0 MTNL Idea Vodafone 8 10 AirTel

Yes

8 10

SWOT ANALYSIS

78

STRENGT%S #ost advantage #urrent leaders in quality service +argest distribution network "bility to constantly innovate =ighly skilled workforce *ntrepreneurial )eal "irtelHs increased equity and market cap.

WEAKNESSES o prove credibility 6rice pressures .eed for 1overnment support "wareness $ales and !arketing

79

O66ORTUNITIES o sustain passion and commitment "irtelHs market share increasing at other service provider expense. hus opportunity to wipe it out. "ttain higher value services #ollaborative business needs to be explored <ertical repeatable solutions. +ow penetration level in rural markets.

T%REATS

&oreign investment
1lobal trends moving from 16$ to W++. +ack of global parity in telecom tariff

,ther competition

80

CONCLUSION

&rom above the details I conclude that 0;B "irtel users preferred to remain with "irtel. "lso good no. of users who were willing to switch from their respective subscribers showed interest in "irtel. =ence, these statistics imply a bright future for the company. "lso the company is now providing more services like the door to door services which is you dial the "irtel customer care and would like to send someone flowers the "irtel company delivers those flowers to the person concerned. "lso "irtel is providing free text messaging service and free voice mail service. #all conferencing is also another feature "irtel provides.

81

$I$LIOGRA6%Y

'ernard ?.

. !allinder. $pecification !ethodology "pplied to

the 1$! $ystem. In EUROCON 88, ?une 3;;:.

$eshadri !ohan and %avi ?ain. for 6ersonal #ommunication

wo -ser +ocation $trategies $ervices. IEEE Personal

Communications. 2(2C, 2558.

!oe %ahnema. ,verview of the 1$! $ystem and 6rotocol "rchitecture. IEEE Communications Magazine. "pril 2554.

#. Watson. %adio *quipment for 1$!. In (.!. 'alston and %.#.< !acario, editors, Cellular Radio Systems, "rtech =ouse, 'oston, 2554.

%obert 1. Winch. Telecommunication Transmission Systems !c1raw=ill .ew 7ork, 2554.

<odafone "irtel Idea ! .+

82

MUESTIONNAIRE
NAME: NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN ADDRESS: NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN OCCU6ATION: NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN

<.

D" 8"+ be*ieve !ha! I dia is ,"!e !ia**8 " e "!he

!he /"s! eK3i!i ) /"bi*e servi3e ,r"viders i ."r*d4 C"/,a 8 Air!e* ("da-" e Idea MTNL Yes N"

=. D" 8"+ -i d !ha! !he )"ver /e !0s !e*e3"/ ,"*i38 has had !he /"s! radi3a* i/,a3! " /"bi*e servi3e ,r"viders4 C"/,a 8 Air!e* ("da-" e Idea MTNL Yes N" !he deve*",/e ! "-

1. D" 8"+ be*ieve !ha! " e "- !he 3ha**e )es -a3i ) /"bi*e ",era!"rs i re)i" s4 C"/,a 8 Air!e* ("da-" e Yes N" I dia is !he diversi!8 "- !he 3"vera)e

83

Idea MTNL A. T" .ha! eK!e !, d"es 8"+ -i d !ha! /"bi*e servi3e ,r"viders is a ver8 3"/,*eK s!a dard4 C"/,a 8 Air!e* ("da-" e Idea MTNL T" s"/e eK!e ! 5<&B# T" )rea! eK!e ! 5L&<2#

84

CONSUMER LE(EL
<. D" 8"+ be*ieve !ha! /"bi*e servi3e ,r"viders 3"/es 3*"se !" -+*-i**i ) !he re9+ire/e !s -"r a ,ers" a*

3"//+ i3a!i" C"/,a 8 Air!e* ("da-" e Idea MTNL

s8s!e/4 Yes N"

=. D" 8"+ -i d !ha! /"bi*e servi3e ,r"viders as !he /"s! eK3i!i ) a d sa!is-8i ) /"bi*e s!a dard4 C"/,a 8 Air!e* ("da-" e Idea MTNL Yes N"

1. D" 8"+ be*ieve !ha! 8"+r servi3e ,r"vider has a )e +i e 3"//i!/e ! !" 3rea!i ) a /"der 3"//+ i3a!i" s4 C"/,a 8 Air!e* ("da-" e Idea MTNL Yes N" a d e--i3ie !

85