A

Market Survey Report

On
A Comparative Study on Vodafone & Airtel

GREAT GANGS INSTITUDE OF TECHNOLOGY

SESSION 2014-2017

Under The Guidance of

Mr.Altaf Qaiyum
Submitted By
Pooja Savita
Roll No-0804970
BBA(2014-2017)

CERTIFICATE
This is to certify that Ms. Pooja Savita Roll number 0804970, a student of BBA in Great
Ganges Institute of technology, has carried out the Project work presented in this report titled
A comparative study on vodafone and airtel for the award of Bachelor of Business
Administration from CSJM University Kanpur ,for the academic batch 2014-2017 under my
guidance.
Name of the Project Guide
Ms . Altaf Quiyam
(Asst. Prof. GGIT)

DECLARATION

I, POOJA SAVITA , hereby declare that the project work entitled A COPARATIVE STUDY ON
VODAFONE AND AIRTELS submitted towards BBA Certificate is my original work and the
dissertation has not formed the basis for award of any degree, associate ship, fellowship or any
similar title to the best of my knowledge.

Place:
Date:

(Signature of Student)
(POOJA SAVITA)
0804970

ACKNOWLEDGEMENT

I take this opportunity to convey our sincere thanks and gratitude to all those who have
indirectly helped and contributed towards the completion of this project .I would like

directly or
to convey my

sincere thanks to , has guided me and given his valuable time & knowledge during my stayed the
company.
I am deeply grateful to Mr. Sir my faculty guide, who provided valuable insights and guidance at every
stage of the project.
I also convey my sincere gratitude to my friends for their encouragement and support extended to me
during the course of my project.
At the end I would not forget to thank other employees of Indian Laboratories who treated me with
respect and helped me to the best of their capacity.

CONTENTS
SR. NO.

PARTICULARS

1.

CERTIFICATE

2.

DECLARATION

CHAPTER

3.

ACKNOWLEDGEMENT

4.

OBJECTIVE OF THE SURVEY

5.

INTRODUCTION

6.

COMPANY PROFILE

8.

METHODOLOGY

9.

DATA COLLECTION

10.

DATA ANALYSIS

11.

FINDINGS

12.

RECOMMENDATIONS

13.

CONCLUSION

14.

BIBLIOGRAPHY

15.

QUESTIONNAIRE

OBJECTIVES
The objective of the study is to know the comparative measurement of customer
perception regarding the services of two major companies that are doing their
business in Delhi (ncr) region. These two companies are: - AIRTEL,
VODAFONE" Along with this I tried to find out the perceptions of the customer
of different Age Group & different Professions which are using the services of
these companies permanently are given below:

To know the customer perception, choice and preference regarding various mobile
services.

Which mobile service is preferred most by the customers?

Comparative measurement of customer satisfaction level for various mobile services

available in Delhi (ncr).

To understand the main problems faced by the customer while using the mobile services.

To know the features of a mobile service which attracts the customer most.

To know the level of Customer Loyalty regarding his service provider & he is a switcher
who switches over time to time due to various reasons.

To know the media which affects the customer most while making their decision of using
a mobile service.

To understand the infrastructure of payment which is most uses by the customer.

INTRODUCTION
This research is conducted on the basis of growing competition in mobile Sector. The biggest
competitor of mobile sector in Delhi NCR are Vodafone & Airtel. This Research is conducted to
analyze who is better and why?
The telecommunication is the biggest factor in influencing the speed of life in themodern
age. Today we can get connection with any corner of world through the push button of
computer, with the small mobile phone we can sent not only the massages but also a
secret document. As we know that there is a positive view behind any mention that it
should be helpful in the development of society. But humans have diverted mentality
some of them of positive view and some of them of negative view. Where use any
invention for the welfare of society but some uses for the satisfaction their disturbed
mentality and to earn more and more money whether it may be harmful for the society.
They infringe the norms of society and their behavior is condemned as antisocial,
immoral and sinful.

CELLULAR MOBILE SERVICES

Cellular is one of the fastest growing and most demanding telecommunication
applications. Today, it represents a continuouslyincreasing percentage of all new
telephone subscriptions around the world. Currently there are more than 45 million
subscribers in worldwide and nearly 50 % of those subscribers are located in USA. It is
forecasted that cellular systems using a digital technology will become the universal
method of telecommunications. By the year 2005, forecasters predict that there will be
more than 100 million cellular subscribers worldwide.

IMPORTANCE OF THE STUDY

To study the psychology of customers in respect of their need :

Coverage area network
Variety of plans
Good signals
New services provided by them

Differentiation between Airtel/Vodafone in respect of consumers

Perception, which is better and why?

INDUSTRY PROFILE

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. Thirtyfour 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,
by 1999 many operators failed to pay their license fees and were in danger of having their

licenses withdrawn. In March 1999, a new telecom policy was put in place (New Telecom Policy
[NTP] 1999). Under this new 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.

Indian Cellular market - earlier roadblocks and their resolution

Indian Cellular market immediately after the first round of licensing in 1994-96 was beset
by several problems for 3 - 4 years till the New Telecom Policy of 1999 was announced.
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.
Inadequately funded businesses / weak and fragmented promoters
Businesses that have since been adequately funded growing at over 60% per annum, while
businesses with weak promoters continuing to languish - spate of acquisitions / mergers, with 4/5
major groups emerging in the last one/two years.
Regulatory authority not in place
Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all
operators; Dept of Telecommunications (DOT) restructured, with operations and policy making
roles vested in different bodies.
Issues relating to unfavorable interconnect terms for private operators, pass through income, intra
circle long distance, spectrum availability and allocation and the like remained unresolved for
long periods.
Interconnect terms since rationalized, risks on pass through income to DOT / BHARTI (Mahan
agar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in methodology

/ revenue sharing, intra circle long distance allowed, spectrum availability cleared with vacation
of frequencies for usage by GSM operators.

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.

Licensing tenure increased from 10 to 20 years

Large upfront cash requirements for license fee payments mitigated with migration to
revenue sharing mode allowing promoters to deploy more capital for capital expenditure; project
financing being considered by most financial institutions.

Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed as a matter of routine
allowing ease of entry / exit - paves the way for full control of businesses by foreign companies.
Inadequate growth of market / subscribers
Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective
measures taken, market / subscriber base expected to zoom.

Developments in the cellular industry

The interconnection regime between cellular operators and fixed-line operators is still biased
against the former.
Despite the recent gains of the cellular industry, not everything is rosy. The cellular penetration
rate is still very low at 0.8 percent in a nation of over one billion people.
In recent years, many foreign companies had pulled out from their cellular joint ventures in India
due to the difficult operating environment and bureaucracy. In 1999 alone, Swisscom pulled out
from Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of Thailand
and Jasmine International from JT Mobile. In 2000, Telecom Malaysia sold its stake in Usha
Martin Telecom, and both Shinawatra of Thailand and Bezeq exited from Fascel. In June 2001,
British Telecom exited from Bharti Cellular. Bell South International has also indicated its
intention to pull out from Skycell Communications, and Hong Kong-based Distacom is seeking
to sell its stake in Spice Communications. First Pacific's (based in Hong Kong) continued
commitment to Escotel is uncertain, and the former is reviewing various options.
The string of sell-outs notwithstanding, there has been a merger and acquisition wave sweeping
across the Indian cellular industry in recent years. Hong Kong-based Hutchison Whampoa, via
Hutchison Telecommunications (HK), acquired major stakes in Sterling Cellular (December
1999), Usha Martin Telecom (mid-2000) and Fascel (September 2000). Through a partnership
with local company, Kotak Mahindra Finance, Hutchison Whampoa practically controls Fascel
and Usha Martin Telecom, thus circumventing the 49 percent limit on foreign ownership in
Indian cellular operators. Hutchison Whampoa is also the controlling shareholder of Hutchison
Max Telecom. Not to be outdone, Bharti Enterprises another major cellular player acquired

control of JT Telecom, which was later renamed Bharti Mobile (December 1999), and Skycell
Communications renamed Bharti Mobinet (August 2000). Bharti also acquired the Punjab
license of Essar and started operations, giving competition to the lone operator there, Spice
Communications. Going forward, Bharti is likely to merge all its cellular companies into one
entity.
Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in
four metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new licenses, followed
by Escotel with four, Hutchison with three, and Vodafone and Idea cellular with one each. Bharti
and Hutchison have already commenced operations in all the circles while Idea is set to launch in
Delhi. Escotel and Vodafone have not made any headway.
BHARTI, the third cellular operator for Delhi and Mumbai, started services in March 2001.
BSNL, as the third nationwide cellular operator, launched services in Kolkata and Bihar in
January 2002. This was followed by Tamil Nadu in July 2002. A nationwide launch was
scheduled for 2 October 2002. However, this has been postponed until after mid-October. Once
BSNL rolls out its service, most telecom circles will have four cellular operators. There will be
tremendous competitive pressure, which will result in lower tariffs. Future rate cuts are expected,
which will drive demand, together with falling handset prices and the introduction of prepaid
services.
In the midst of declining interest in technology stocks, Bharti came out with its long-awaited
initial public offering (IPO) in January 2002. Leveraging on the success of its cellular service,
the company got a very good response from the primary market. The total size of the IPO was
185 million shares at a floor price of Rs10. The issue was oversubscribed by more than 2.5 times,

netting Rs8.3 billion. This will be used to fuel its investment in long-distance, basic and cellular
services.
As of October 2002, only BPL Mobile has launched commercial general packet radio service
(GPRS) in Mumbai. However, large-scale uptake remains elusive. While both Bharti and Idea
have GPRS-enabled networks, there is caution on their part to launch the service. With hardly
any applications, the success of GPRS remains a question.

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.
Virgin mobile comes in Indian Territory with the alliance of TATA telecommunication
Maharashtra in 2008.
Mitsubishi a Japanese telecomm services (MTS) company comes in India in 2009 and take over
first rainbow in Rajasthan with CDMA network criteria.

Telecom Sector In India

Than 125 million telephones network is one of the largest communication networks in
world, which continues to grow at a blistering pace.
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.The telecom sector has shown impressive growth during the past decade. Today,
more
Two striking features of this growth viz. increasing preference for mobile phones and
higher contribution of private sector in the incremental growth have predominated the
telecom sector. The share of mobile phones (including WLL mobile) has overtaken the
share of landlines with 62% in the total number of phones. The private sector's
contribution is also increasing rapidly. 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 of 350 million taking the tele-density to more than 30% which is
currently at 24.63%.
Network Expansion: The total number of telephone subscribers has reached 281.62
million at the end of January 2008 as compared to 232.87 million in July 2007. The

overall Teledensity has increased to 23.63% in January 2008 as compared to 21.20% in

August 2007.
Wireless Service: The wireless segment saw a surge of 8.77 million subscribers last
month compared to 8.17 million in December2007. This pushed the total wireless
subscribers base to 242.40 million by Jan 31 2008.
Wire line Subscribers: The wire line segment subscriber base stood at 39.73 million
with a decrease of 0.16 million at the end of January 2008.
Teledensity: The gross subscriber base reached 206.83 million at the end of March 2007.
The Teledensity is 24.63%at the end of January 2008 as compared to 18.31% at the end
of March 2007, registering an increase of 6%.
Increasing Role of Private Sector: The private sector has played a significant role in the
growth of telecom sector. The share of private sector has risen to 85 per cent in December
2007 from 64.14 per cent in November 2006.
Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due to
increased competition. The minimum effective charges for local calls have fallen
considerably in recent months especially for cellular service. The long distance domestic
as well as international charges have also fallen considerably.
Telecom Regulatory Authority of India (TRAI): TRAI was established under the
Telecom Regulatory Authority of India Act, 1997 enacted on March 28,1997. 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.

TRAI has endeavored to encourage greater corporation in the telecom sector together
with better quality and affordable prices.

AIRTEL

Airtel is a brand of telecommunication services inIndia operated by Bharti Airtel.

Airtel is the largest cellular service provider in India in terms of number of subscribers.
Bharti Airtel owns the Airtel brand and provides the following services under the brand
name Airtel: Mobile Services (using GSM Technology), Broadband& Telephone Services
(Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and
Enterprise Services (Telecommunications Consulting for corporate). It has presence in all
23 circles of the country and covers 71% of the current population (as of FY07).
Leading international telecommunication companies such as Vodafone and SingTel held
partial stakes in Bharti Airtel.

VODAFONE ESSAR

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

BACKGROUND
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. The report begins
with the history of the products and the introduction of the Airtel Company. This
report also contains the basic marketing strategies that are used by the Airtel Company
of manufacturing process, technology, production policy, advertising, collaboration,
export scenario, future prospect and government policies. The report includes some of
the key salient features of market trend issues.
In todays world of cutthroat fierce competition, it is very essential to not only exist
but also to excel in the market. Todays market is enormously more complex. Hence
forth, to survive in the market, the company not only needs to maximize its profit but
also needs to satisfy its customers and should try to build upon from there.

(3.1) COMPANY PROFILEOFAIRTEL

Vision
"As we spread wings to expand our capabilities and explore new horizons, the fundamental focus
remains unchanged: seek out the best technology in the world and put it at the service of our
ultimate user: our customer."
These are the premise on which Bharti Enterprises has based its entire plan of action.
Bharti Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world-class products and services.
Established in 1985, Bharti has been a pioneering force in the telecom sector. With many firsts
and innovations to its credit, ranging from being the first mobile service in Delhi, first private
basic telephone service provider in the country, first Indian company to provide comprehensive
telecom services outside India in Seychelles and first private sector service provider to launch
National Long Distance Services in India. Bharti had approximately 3.21 million total customers
nearly 2.88 million mobile and 334,000 fixed line customers.
Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Delhi,
Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata, Madhya Pradesh circle,
Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In addition, it
also has fixed-line operations in the states of Madhya Pradesh and Chhattisgarh, Haryana, Delhi,
Karnataka and Tamil Nadu and nationwide broadband and long distance network.

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.
The Company is also implementing a submarine cable project connecting Chennai-Singapore for
providing international bandwidth.
Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apart
from being the largest manufacturer of telephone instruments, it is also the first telecom company
to export its products to the USA.
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.
The Company has developed the following strategies to achieve its strategic objective:

Focus on maximizing revenues and margins;

Capture maximum telecommunications revenue potential with minimum geographical

coverage;

Offer multiple telecommunications services to provide customers with a "one-stop shop"

solution;

Position itself to tap data transmission opportunities and offer advanced mobile data
services;

Focus on satisfying and retaining customers by ensuring high level of customer

satisfaction;

Leverage strengths of its strategic and financial partners; and

Emphasize on human resource development to achieve operational efficiencies.

Businesses
Bharti Tele-Ventures current businesses include

Mobile services

Fixed-line

National and international long distance services

VSAT, 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:

Nationwide Footprint - 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;

Focus on telecommunications to enable the Company to better anticipate industry trends

and capitalize on new telecommunications-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; and

The Company's strong relationships with international strategic and financial investors
such as SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund
Group and New York Life Insurance.

Brand Architecture:
Bharti is working on a complex three-layered branding architecture to:

Create specific brands for each service,

Build sub-brands within each of these services and

Use Bharti as the mother brand providing the group its corporate identity as well

as defining its goal to become a national builder of telecoms infrastructure.

BHARTI

AIRTEL

TOUCHTEL ONE

(Cellular
Operations)

(National Long Distance)

(Basic Service
Operations)

Airtel -The flagship brand for cellular operations all across the Indian country.
Touchtel - The brand earmarked for basic service operations.
India One -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.

Brand Strategy:
To understand the brand strategy, lets 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.
When the brand was launched seven years ago, cellular telephony wasnt a mass market by any
means. For the average consumer, owning a cellular phone was expensive as tariff rates (at Rs 8 a
minute) as well as instrument prices were steep sometimes as much as buying a second-hand
car.
Bharti could have addressed the customer by rationally explaining to him the economic
advantage of using a mobile phone. But Sachdev says that such a strategy would not have

worked for the simple reason that the value from using the phone at the time was not
commensurate with the cost.
Instead of the value-proposition model, we decided to address the sensory benefit it gave to the
customer as the main selling tack. The idea was to become a badge value brand, he explains.
So the Airtel leadership series campaign was launched showing successful men with their
laptops and in their deluxe cars using the mobile phone. In simple terms, it meant Airtel was
positioned as an inspirational brand that was meant for leaders, for customers who stood out in a
crowd.
Did it work? Repeated surveys following the launch showed that there were three core benefits
that were clearly associated with the brand leadership, dynamism and performance.
These were valuable qualities, but they only took Airtel far enough to establish its presence in the
market. As tariffs started dropping, it became necessary for Airtel to appeal to a wider audience.
And the various brand-tracking exercises showed that despite all these good things, there was no
emotional dimension to the brand it was perceived as cold, distant and efficient.
Sachdev and his team realized that in a business in which customer relationships were the core
this could be a major weakness. The reason with tariffs identical to competitor Vodafone
telecomm and roughly the same level of service and schemes, it had now become important for
Bharti to humanize Airtel and use that relationship as a major differentiation.
The brand had become something like Lufthansa cold and efficient. What they needed was to
become Singapore Airlines, efficient but also human. A change in tack was important because
this was a time when the cellular market was changing.

The leadership series was okay when you were wooing the crme de la crme of society. Once
you reached them you had to expand the market so there was need to address to new customers.
By that time, Bharti was already the leading cellular subscriber in Delhi with a base of 3.77 lakh
(it now has 1.8 million customers). And with tariffs becoming more affordable as cell
companies started cutting prices it was time to expand the market.
How could Bharti leverage this leadership position down the value chain? Surveys showed that
the concept of leadership in the customers minds was also changing. Leadership did not mean
directing subordinates to execute orders but to work along with a team to achieve common
objectives it was, again, a relationship game that needed to be reflected in the Airtel brand.

Also, a survey showed that 50 per cent of the new customers choose a mobile phone brand
mostly through word-of-mouth endorsements from friends, family or colleagues. Thus, existing
customers were an important tool for market expansion and Bharti now focused on building
closer relationships with them.
That is precisely what the brand tried to achieve through its new positioning under the
AirtelTouch Tomorrow brand campaign. This set of campaigns portrayed mobile users
surrounded by caring family members. Says Sachdev: The new campaign and positioning was
designed to highlight the relationship angle and make the brand softer and more sensitive.
As it looks to expand its cellular services nationwide to eight new circles apart from the seven
in which it already operates Bharti is now realizing that there are new compulsions to rework
the Airtel brand, and a new exercise is being launched to this effect. Right now, the company is
unwilling to discuss the new positioning in detail. But broadly, the focus is on positioning Airtel

as a power brand with numerous regional sub-brands reflecting customer needs in various parts
of the country.
If Airtel is becoming more humane and more sensitive as a brand, Bharti has also understood that
one common brand for all cellular operations might not always work in urban markets that are
now getting increasingly saturated.
To bring in new customers, the company decided that it needed to segment the market. One such
experiment, launched last year, is Youtopia, a brand aimed at the youth in the 14 to 19 age
bracket and for those who are young at heart. With its earlier positioning, Airtel was perceived
as a brand for the well-heeled older customer; there was nothing for younger people. With
Youtopia, Airtel hoped to reverse that.
In order to deliver the concept, Airtel offered rock bottom tariff rates (25 paisa for 30 seconds) at
night to Youtopia customers a time when they make the maximum number of calls. It also set
up merchandising exercises around the scheme like a special portal for young people to buy
things or bid for goods.
The company is now looking at offering other services at affordable prices to this segment which
include music downloads on the mobile and bundling SMS rates with normal calls to make it
cheaper for young people to use.
The other experiment that Bharti has worked on is to go in for product segmentation through the
Tango brand name. The brand was created to offer mobile users Internet-interface services or
what is known as WAP (Wireless Application Protocol).

The idea was to bring Internet and mobile in perfect harmony. The name was chosen from the
popular movie title It Takes Two to Tango: basically, you need the two services to tango to offer
customers a new choice, says Sachdev.
This, however, had less to do with the branding exercise as with inefficiency of service
(accusingly slow download speeds) and the limited utility of WAP services.
Subsequently, the ads were withdrawn, but the company re-iterated that the branding exercise
could be revived because Tango will be the brand to offer GPRS services or permanent
Internet connectivity on the mobile phone which Airtel is expected to launch soon.

The Magic
Perhaps the more ambitious experiment has been with Magic the pre-paid card. The idea was
to make the brand affordable, accessible and, most importantly, feasible as a means of expanding
the market even faster.
PHASE-1
Magic was aimed at bringing in infrequent users of a mobile phone into the market and
assure him that he would have to pay only if he made a call. Such
a customer used the phone sparingly mostly for emergencies and was not willing to pick up
a normal mobile connection with its relatively high rentals (pre-paid cards do not include rental
charges).
To achieve its objectives Bharti did three things.

One, the product was made available at prices ranging from Rs 300 to Rs 3,000 with no
strings attached and was simple to operate.

Two, the product was made accessible and distributed through small stores, telephone
booths and even kirana shops so that the offering was well within arms reach.

Third, to make the product more approachable to the customer, the company came with
vernacular ad campaigns

Like Magic Daalo Say Hello which appealed to local sensibilities.

This apart, the company roped in Karisma Kapoor and Shah Rukh Khan for a major ad campaign
all across Delhi, a ruse that saw the number of subscribers go up from 5.47 lakh to 1.2 million

today, overtaking Essars branded pre-paid card Speed, which was launched much ahead of
Magic. The company is now re-working its Magic strategy even further.
Earlier, the branding strategy was aimed at roping in only interested customers that is,
customers who were already inclined to opt for mobile services. But now, with basic service
providers having been allowed limited mobility at far cheaper rates, mobile service providers
could find themselves under threat again.
That is why the new exercise is aimed at co-opting non-adopters. While the exact strategy is
under wraps, insiders say the new branding strategy would be aimed at offering them value
which they had not perceived would be available from using a pre-paid card.

PHASE II Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion
through Indias first national pre-paid card TV brand campaign

First time ever in India - 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 India

Youth based - romance driven strategy platform makes the value proposition of Airtel Magic
- Mumkin Hai come alive

All elements - user imagery, context, tone & language created to connect the category to the
lives of the SEC B & SEC C segment the middle class non-mobile user.

Airtel Magic positions itself on the platform of being excellent for emergency situations increasing productivity as a part of everyday life.

Sharukh Khan makes everything in life possible while romancing pretty Karenna Kapoor
with Airtel Magic, Indias leading pre-paid mobile card.

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 strategy is targeted at the nonuser
segment defined as young adults, 15-30 years of age; in the Sec B & C segment is aimed at
accelerating market expansion. The value proposition is centered around a persons desire to
make all his / her dreams, ambitions & aspirations instantly possible. The new campaign for
Airtel Magic is all about empowering millions of Indians to be on top of their lives.
The brand is positioned to be relevant to the mass-market who want to make all their dreams,
hopes & desires come alive instantly. (At just Rs.300/- per month Airtel Magic is so easy to
buy.) Improving productivity, letting you befriend the world and opening up new horizons. It
gives you the freedom to control your life in a way never possible before. Indeed, anything that
you think is possible is possible with Airtel Magic. The new brand slogan Magic hai to
Mumkin hai has been specially created to capture this effectively.
This strategy is designed to help us talk to this segment directly in the tone, manner & language
of the masses. The Mumkin hai value proposition will help us expand the market and gain a
higher percentage of market shares in the process.
The 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). Sharukh rose
from a TV actor to become Indias top film star and national heartthrob. Karennas success is
due to her attitude, talent, hard work and the sheer ability to make a mark in such a short time.
Both these stars have said Mumkin hai and made it happen for themselves.

The genre of this new strategy & campaign is Hindi cinema led. This genre connects millions
across India. The spirit of romance, dancing the Indian cinema, well known to most as
Bollywood, holds millions of Indians together as one.
The new TV campaign of Airtel Magic crafted in the Hindi film idiom, magnifies the
empowering optimism of Mumkin Hai, in the endearing situation of a boy-girl romance.
Where Sharukh Khan, sets his eyes on Kareena Kapoor and wins her love with the help of Airtel
Magic. (Poignantly conveying that special feeling we all get when a dream is made possible and
a victory of the heart is won).
The strategy & new brand campaign is targeted at the large untapped base of intending mobile
customers from Sec A, B & C. The estimated addressable market of such customers in the next
two years is around 25 million in Airtels 16 states. The new strategy aims at correcting the
perception that the mobile category is useful mainly for business or work related scenarios.
The new strategy, brand positioning & brand slogan is an outcome of an extensive nationwide
research and is an integral part of Airtel Magics new multi-media campaign. 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 Indias first national pre-paid card TV brand campaign

First time ever in India - 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

Youth based - romance driven strategy platform makes the value proposition of Airtel Magic
- 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 value proposition is centered on a persons desire to make all
his / her dreams, ambitions & aspirations instantly possible. The new campaign for Airtel Magic
is all about empowering millions of Indians to be on top of their lives.
The brand is positioned to be relevant to the mass-market who want to make all their dreams,
hopes & desires come alive instantly .At an amount of your choice you can recharge your
account with available validity time .Improving productivity, letting you befriend the world and
opening up new horizons. It gives you the freedom to control your life in a way never possible
before. Indeed, anything that you think is possible is possible with Airtel Magic. The new brand
slogan Aisi azaadi aur kahan has been specially created to capture this effectively.

Subscriber numbers in (MN) held by Vodafone and Airtel

June-05

Sep-06

Dec-07

Mar-08

Dec-09

Mar-10

Airtel

3.19

4.62

5.50

6.54

10.98

14.07

Vodafone

1.82

4.19

6.24

7.26

10.45

12.99

Source TRAI:
16
14
12
10
Airtel

vodafone

6
4
2
0
38504

38961

39417

39508

39783

39873

Operator

MARKET
TELE

Market

share Market

Aug''05

Aug''10

Bharti Airtel

19.06

22.49

Vodafone

21.81

16.96

Vodafonecomm 17.03

16.01

Idea Cellular

8.49

10.45

COMMUNICATION

share

PLAYERS IN

25
20
15
10
5
0

Market share Aug''05

Market share Aug''10

Other Brand Building Initiatives:The main idea is to stay ahead of competition for at least six months. Working on the above game
plan Bharti is constantly coming up with newer product offerings for the customers.
The focus, of course, is to offer better quality of service.

To make the service simpler for customers using roaming facilities, Airtel has devised
common numbers for subscribers across the country for services like customer care, food
services and cinema amongst others.

It will also launch a unified billing system across circles so, customers moving from one
place to another do not have to close and then again open new accounts at another place.

To assist customer care personnel to deal with subscriber queries, a storehouse of 40,000
frequently asked questions and their answers have been stored on the computers.

Bharti expects that most of its new customers (one estimate is that it would be 60 to 70
per cent of the total new subscriber base) would come from the pre-paid card segment.
So, they must be given value-added products and services which competitors dont
provide.

Bharti, for the first time for a cellular operator, has decided to offer roaming services even
to its pre-paid customers, but the facility would be limited to the region in which they buy
the card. To ensure that customers dont migrate to other competing services (which is
known as churn and ranges from 10 to 15 per cent of the customer base every month), the
company is also working on a loyalty program. This will offer subscribers tangible cash
benefits depending upon their usage of the phone.

The loyalty program will not be only for a badge value, it will provide real benefits to
customers. The idea is to create an Airtel community.

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. The cost per picture is between Rs 5 to Rs 7.

Bharti is also aware that it has to make owning a ready-to-use cellular service much easier
than it is today. A key area is to increase the number of activation centers. Earlier Bharti
had 250 Airtel Connect stores which were exclusive outlets (for its services) and about
250 Airtel Points which were kiosks in larger shops. Now activation can be done by all of
them, and not only by Connect outlets, all within 15 to 20 minutes. In comparison, the
competition takes two to four hours.

Pre- paid cards are really catching up with the mobile phone users and it is actually
helping the market to increase. First, they are easier to obtain and convenient to use.
Unlike post-paid, one need not pay security deposits for picking up a pre-paid card. It is
often available even with paanwalas. As befits a fast-moving consumer service, the game
is now moving beyond price to expanding distribution reach and servicing a well-spreadout clientele with technology and strategic alliances. 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.

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. 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.

Bharti Televentures has tied up with 'Waiter on wheels,' a company delivering food at
home, to reach its Magic pre-paid cards to subscribers' doorsteps. The company is also
joining hands with local grocery shops which will enable users to recharge their cards by
just making a phone call to the shop. Apart from improving the convenience of
recharging, mobile operators are beefing up their distribution channels. The company is
constantly innovating to enhance the value proposition for its pre-paid service. They are
leveraging technology to expand their distribution network and deliver round-the-clock
recharge options to its MOTS (Mobile on the Spot) subscribers.

Bharti Cellular has also launched a special service, CareTouch, for high-value, corporate
customers, providing them with instant, single-point access for any assistance they
require. Customers can dial 777 and enjoy a slew of services, which includes easier
payment of bills, service on priority basis, and value-added services without any
additional paper work. Bharti Cellular is offering a range of services without going
through an interactive voice recorder ensuring that they save time. Dedicated CareTouch
executives are expected to assist customers with any service on priority basis. Besides the
regular proactive reminder calls for bill payment, customers can also call CareTouch for
bill payments at free of cost.

Airtel presented MTV Inbox; the first on-air SMS based interactive music dedication
show exclusively for Airtel and Airtel Magic customers. Highly interactive VJ based
show with real-time feedback mechanism. Both brands joined hands to target the high
growth youth segment.

Bhartis View on its Branding strategy:First, brand building efforts in todays context have to be seen in a more holistic manner.
Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts.
Unflinching orientation to customer needs is the second key success factor. Customers (be it for
industrial products or consumer goods and services) across the world are more informed and, at
the same time, becoming more individualistic in their needs and far more demanding with the
passage of time.
Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging customer
needs, and then reacting in real-time are essential to attract and retain customer loyalty a
key element of creating brand equity in the present situation.
Customizing the product (and communication of its benefit) to meet the specific needs of various
consumer/customer sub-segments is the third element in creating brand appreciation.
As far as allocation of time and financial resources are concerned, too many companies
mistakenly allocate a disproportionate amount on mere advertising and promotion. This is not to
say that advertising and promotion are less relevant. On the contrary, with more choices and
higher media clutter, businesses need to budget for an increasingly higher spend on their brand
promotion but this has to be undertaken in tandem with enterprise-wide reengineering of the
business philosophy and core design, production, and delivery operations for the product itself.
The positive spin to this argument is that by first addressing the fundamentals, the enterprise
itself becomes more competitive. 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.

It is, however, crucial to note that in the years to come, not only will the cost of building a
regional or a national (or an international) brand will continue to rise but also the time taken to do
so will be longer and will need sustained and focused efforts.

Comparison of marketing strategies betweenBharti Airtel and Vodafone

Purpose of comparison

The sub main purpose of this report is to compare the marketing Strategies adopted by Bharti
Airtel and its rival Vodafone

The comparison shows how both of the companies have been challenging each other to gain
market shares.

Why comparison with Vodafone

Bharti Airtel is the leader in telecommunication sector.

Bharti Airtel holds the lion share of market of communication sector.

However, Vodafone has been giving tough competition to Bharti Airtel.

Vodafone is the second largest player and shareholder in Communication sector.

Since its launch Vodafone has been adopting aggressive marketing strategies.

The comparison shows how Hutchison Essar Telecom. Captured 22% market share in one month
of its first launch of postpaid subscription in 2002.AD.

With a different technology Vodafone creates its own market.

Vodafone. Today deals in every business of communication sector.

Vodafone making and changing the strategies to capture the market shares

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.

Youngsters in big cities.

Businessmen

Positioning

Creating brands (Sharukh khan & Sachin Tendulker)

Ads and promotions

Promotion for study of poor childrens.

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

MARKETING STRATEGIESOFVODAFONE.
Vodafone target the rural India
The main targeted customers of Vodafone are from rural India.
By offering cheap and light mobile sets Vodafone attracts most of the customers of small villages
and towns.

Offering cheap handsets

Vodafone offers cheap and free connections to all customers.
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.

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.

Targeting youngsters in metropolitans

Vodafone attracts youngsters by offering colorful handset at very low prices.

BRAND POSITIONING BY VODAFONE

Market segmentation
Geographical segment (rural India)
Demographic segment - middle income groups

Target marketing

People living in small towns and villages.

Poor and middle income groups.
Youngsters in big cities.
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 Airtel

Mobile services with GSM technology

Fixed-line connections
National and international long distance services
VSAT, Internet services and network solutions
Broadband services

Services provided by Vodafone.

mobile services with GSM technology

fixed-line telephone services

Universal Internetworking
VoIP (Voice over Internet Protocol)
Interactive Television
Visual Communication
Broadband Portal

(3.2) 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, superior quality products and an enviable distribution network.
It has a clear and well-defined organization structure and limits of financial authority.
Increase in advertisement spends affect the companys margins.
The companys bottom line falls victim to the bloated and highly paid workforce, which
affects its margins.

Weakness:
Little efforts over the Advertising of products.
Distribution channel is not accurately categorized.
Premium priced products, hence cant compete in low price segment.
No separate strategy for rural market.

Opportunities: The company's financial performance can receive a major boost

from its cost reduction efforts.

There is a lot of scope of product and market diversification.

Exports of products will also have huge chances in the coming years.

Airtels business has ample scope for gaining market share from the unorganized
sector. Rural penetration too holds vast potential to bring about growth.

Threats

The slowdown in the economy has restricted topline growth of most FMCG majors
and for Airtel also it will be difficult to maintain historical growth rates in such a
depressed scenario.

Companys major raw materials are influenced by government policies / controls as

well as vagaries of the monsoons. Fluctuations in the prices of raw materials would
have significant impact on costs and margins of the company.
Moreover, inordinate hike in Broad Band Internet products would also increases
companys production and distribution cost.

RESEARCH METHODOLOGY
Achieving accuracy in any research requires a deep study regarding the subject. 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.

The research methodology adopted is basically based on primary data via which the most recent and
accurate piece of firsthand information could be collected. Secondary data has been used to support
primary data wherever needed.
Primary data was collected using the following techniques
Questionnaire method
Direct interview method and
Observation method
The main tool used was, the questionnaire method. Further direct interview method, where a face-to-face
formal interview was taken. Lastly observation method has been continuous with the questionnaire
method, as one continuously observes the surrounding environment he works in.
(1.2) Research Objectives 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 and Vodafone.

2.

To study the market of Airtel 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 customer buying behavior and factors which influence the purchase decision
process.
To know how the company has been successful in encountering the aggressive marketing
strategies of competitors.

Research Design

Type of research carried out was exploratory in nature; the objective of such research is to
determine the approximate area where the drawback of the company lies and also to identify the
course of action to solve it. For this purpose the information proved useful for giving right
suggestion to the company.

SAMPLE AREA
Ramabai Nagar(unnao)
The research process was done by interacting with number of customers during the activities
performed, which included, markets, cold calling, canopies, etc.
random sampling.

SAMPLE SIZE
100people

Scope of the study

Sample design consists of

To conduct this research the target population was the mobile users, who are using GSM

technology.
Targeted geographic area of Ramabai nagar. Sample size of 100 persons was taken.
To these 100 people a questionnaire was given, the questionnaire was a combination of

both open ended and closed ended questions.

The date during which questionnaires were filled.
Some dealers were also interviewed to know their prospective. Interviews with the

managers of GSM service providers were also conducted.

Finally the collected data and information was analyzed and compiled to arrive at the
conclusion and recommendations given.

Limitations
No project is without limitations and it becomes essential to figure out the various constraints
that we underwent during the study. The following points in this direction would add to our total
deliberations:-

1. During the study, on many occasions the respondent groups gave us a cold shoulder.
2. The respondents from whom primary data was gathered any times displayed complete
ignorance about the complete branded range, which was being studied.
3. Lack of time is the basic limitation in the project.
4. Some retailers/whole sellers refuse to cooperate with the queries.
5. Some retailers/wholesalers gave biased or incomplete information regarding the study.
6. Money played a vital factor in the whole project duration.
7. Lack of proper information and experience due to short period of time.
8. Some retailers did not answer all the questions or do not have time to answer.

4.DATA COLLECTION: (4.1) Primary Data

Field procedure for gathering primary data included observation and interview schedule in which
the questionnaires were filed by the interviewer.
Personal interviews through self-administered survey was done to collect the data, market
research was undertaken, that was accomplished by performing various activities designed.

Research Instrument:
Questionnaire

The questionnaire was formulated by keep in mind the following points:

Giving the respondents. Clear comprehension of the question.

Inducing the respondents to co-operate.

Giving instructions as to what is needed.

Identifying the needs to be known.

(4.2) Secondary data

Used to obtain information on, Bhartis history, current issues, policies,proceduresetc., wherever
required.

Internet
Magazines
Newspapers
Journals
Bharti Circulars Store
Bharti News Letters
Vodafone Store
Vodafone Ministore

5.FINDINGS & ANALYSIS

Age Group Graph
Proposition of mobile users in India.
28-35years

21-28years

15-21years

65

20

15

15-21years; 15%
21-28years; 20%
28-35years; 65%

As we can see from the above graph, the people who are in the age group of 21-28 years
are the ones who are the maximum users of mobile phones. This segment is the one
which gives maximum business to the mobile operators. This segment constitutes the
young executives and other office going people. They are 65% of the total people who
were interviewed. The next age group are the People who are 28-35 years old. They are
20% of the total. They are those who are at home or have small business units etc. And
the next age group is the youngest generation who are 15-21 years old. They are school
and college going students and carry mobile phones to flaunt. They are 15% of the total
interviewed people.

Occupation Graph
Ratio of consumers who are using telecom services in India.
executives

households

students

Others

55

20

15

10

Others; 10%
students; 15%
executives; 55%
households; 20%

As the above graph shows that 55% of the total people interviewed are working. So, these people
are the ones who are the maximum users of mobile phones. They are the young executives,
managers, Tele - callers etc. who require mobile for their official purposes. The next category is
the households, who are either housewife, small units which operate from their homes etc. They
are 20% of the whole. The next segment is the students. They are 15% of the whole. And 10% of
the whole is categories who are the professionals.

Service Provider Graph

Market Share

others; 20%
airtel; 36%
idea cellular; 13%
reliance; 14%

vodafone ; 17%

These are the total market share of mobile user or people captured by the mobile provider
company. 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.

Customer Service At Airtel Graph

CUSTOMER SATISFACTION LEVEL

fully dissatisfied; 10%

fully ; 20%
partially; 10%

dissatisfied; 60%

As the above graph clearly shows that customer services at Airtel seems poor. 60% of the people
are dissatisfied with the customer services provided by Airtel. They are the ones who have the
maximum share in the market but they are lagging behind in the customer services. 10% of the
people were fully dissatisfied with the customer services of Airtel. This could leave an impact on
the mind of the consumer. He can even switch over his brand. 20% of the people seemed
partially satisfied with the customer services and only 10% seem to be fully satisfied with
Airtels customer services, which is a very small amount.

Type of Card Graph

Types of Cards
sim card; 15%

cash cards; 85%

Cash cards seemed quite popular among the people interviewed. 85% of the total mobile users
were having cash card connections. This means that the cash cards should be easily and readily
available in the local markets. Airtel should make sure that Magic is available in each and every
nook and corner of the market. 15% of the people were having SIM connections which is the
regular bill.

Monthly expense graph

Monthly Expense
Rs 200; 24%

Rs 600; 12%

Rs 450; 64%

People on an average spend RS 500 per month as their mobile phone expense. 64% people
spendthis amount. 24% people spend RS 300 per month as their monthly mobile expense. And
the remaining 12% had an expense more than RS 1000, they could the ones having SIM
connections or having cash cards and having a lot of business calls on their mobiles.

AWARENESS ABOUT WLL GRAPH

Awareness of WLL

no; 45%
yes; 55%

WLL seemed to be a new word for many of the people. 45% of the people were not at all aware
of such a technology. So, in order to get the answer for this question they were first explained the
concept. Only, 55% people knew what WLL is all about.

Awareness of WLL Players Graph

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

vodafone

airtel

Vodafone was the brand which was popular amongst the interviewed people. As Vodafone had
done so much advertising and has it banners and hoarding spread all over Delhi. So, this could be
one the reasons of its popularity. Tata was hardly a known brand in this new field. Possibly,
because of less promotions done by them as compared to 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. Who are the young executives and other office
goers?
They spend a maximum of RS 500 as their mobile expense.

There is more no. of prepared cards than postpaid cards. The mobile users want to spend money
side by side than to spend money at the end of the month on a big bill.
Now when I compared Airtel with its competitor from the point of view of the consumer I
found that on the basis of Tariff plan, value added services and billing accuracy Airtel is at par or
ahead of its competitor but in the case of customer care and availability they lag behind their
competitors. As, Airtel has a hold in the market because it has the maximum no. of connections,
so it must improve upon it customer services.

As far as WLL is concerned people are aware

about it but not many people are aware about Tata. They only know more about Vodafone.
People at this point of time are not interested to switch over from GSM to WLL.

Customer Response towards Questionnaire

Brand you prefer most?

Airtel

Vodafone

Reliance

TATA

Idea

Customer Prefrences using Telecom Services

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

airtel

vodafone

reliance

tata

idea

You have been using this Product Since?

0-2 Years

2-5 Years

5-10 Years

More than 10 years

Customer Usage in %
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

You using other product with Airtel?

Yes

No

yes; 33%

no; 67%

Here are the customer responses about the use of the Airtel product and other product rather than
Airtel.
in this segment of survey 67 % of customer are aspire with Airtel and 33 % shown interest in
other telecom products in urban areas.

You collect any information search before making purchase?

70%
60%
50%
40%
30%
20%
10%
0%

yes

no

SUGGESTIONS
Following are the few suggestions to AIRTEL for improving the market share and image of the products
concerned.

1. PRODUCT
*Modification must be brought about in AIRTEL, in terms of quality. Its demand should be
increased.

2. PLACE
* The brands must be made available easily in, PCO & general stores.

3. PROMOTION
*Company must undertake extensive promotional activities like advertisements must be released
in different Medias to create brand awareness.
*Free samples should be distributed among the prospects. Sales promotion tools like gifts,
contests and coupons must be given to retailers as well as customers and prospects.

* Catalogues should be distributed among customers.

4. PRICE
* Price should be as competitive as other company maintains

* DISTRIBUTION OF NEW CONNECTION SHOULD BE IN REACH OF CUSTOMER

POCKETRECOMMENDATIONS
I have made following recommendation to the company after doing the summer training there:

The company should modify its credit policy as they only target the cash paying
customers who are not easy to trace.

The company should emphasis more on the quality of Pharmaceuticals Products it was
mostly claimed by the exporters that their receipts from company doesnt matches with the
samples quality shown before giving orders.

The company should make its marketing strategy flexible enough in order to face
competition.

The company should keep an eye on the proper delivery of the goods to exporter on time,
as it has been recommended by exporters to make the delivery on time.

The company rate policy must be flexible enough to catch new customers because if
company offers lower price to a new customer then he may continue buy the goods and can be a
permanent customer for the company.

The company should offers such rate in the market so that it may able to catch a bigger
market share and it should be able to compete with the local traders and commission agents
while having a brand name.
The company should take the opinion of exporters from time to time to know what problems
they are facing from the companys side. And if any change they require in present supplying
condition?

CONCLUSION
After analyzing the findings of the research, I can conclude that Airtel lagged behind its
competitors as far as customer service and availability is concerned. The maximum no. of people
who use the mobile is in the age group of 20 to 28. Cash cards are the most popular type of
mobile connections, as they are consumer friendly and recharging the connection is not a
problem.
Maximum no. of people spends Rs 500 on their connections. 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.
As we know that now Airtel has already launched its product with logo Aisi azaadi aur kahan
has already became popular in market. So we can say that 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.
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.
It is the time not only to survive but to sustain in the market for a long time.

For this Airtel has to work on its all marketing strategies, marketing, promotion, brand image.etc.
Airtel has to take Vodafone. Very seriously and update its own strategies from time to time and
when the need arises.
With aggressive marketing strategies Airtel has to target rural India as 70% of population of
India lives in these areas.

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

6. BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem in details the following
Books, Magazines/Journals and Web Sites have been referred. All the material detailed below
provides effective help and a guiding layout while designing this text report.

Books :
Principles of Marketing Philip Kotler & Kevin keller edi. 12
Market Research D.D. Sharma
Research Methodology C.R. Kothari

Websites:

www.Airtelworld.com

www.google.com

www.india.com

www.Vodafone.in

7. ANNEXURE

Questionnaire

Q.1 Name those companies which provide telecom services now a days?
Airtel
Vodafone
Reliance
TATA
Idea

Q.2 which mobile company services you are using now a days?
Airtel
Vodafone
Reliance
TATA
Idea

Q. 3 Among them, which Brand you, prefer most?

Airtel

Vodafone

Reliance

TATA

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.5 Are you using other product instead of Airtel?

Yes

No

Q.6 how would you rate the experience with Brand?

Airtel

Vodafone

Reliance

Excellent

Good

Average Below
Average

Airtel
Vodafone
Reliance

Q.7 Do you collect any information search before making purchase?

Yes

No

Q.8 If yes, which sources are used?

Magazines

Dealers

Sales Executives

Operators reference

Pamphlets and catalogue

Reference from friends and relatives

Any other

Q.9 What are the features you look for in a product before making purchase decision? Give
preferences (1-Highest, 6- least)

Brand credibility

Price and Discount

After sales services and parts, network

Value for money

Vehicle performance

Add on features or ergonomics of design

Q.10. Which of these marketing / sales schemes attracts you while purchasing any connection?

Good Network

Discount scheme

Service package

Any other

Q.11If you have to purchase a new connection or product in near future, which Brand will you go for
and why?
_________________________________________________
_________________________________________________
_________________________________________________

Q.12 Are you aware of various promotional activities being run by Airtel, if yes then how? Are
you satisfied with these promotional activities?

Very

Satisfie

Somewha

Not

Customer Care

t Satisfied

satisfied

Films

By Ad

Satisfie

By

24 hrs.
services

Custo
mer Care

By
Ad Films

By
Camp

24
hrs.
center
services

call

Camp
call

center

Q.13 How would you rate Airtel performance as your expectation on 5 points scale (5
Highest?)
1

After Sale service

Maintenance

Product as per expectation

4 5

Q.14 What are you suggestions for improving the product quality, service availability and parts
availability?

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