Professional Documents
Culture Documents
ON
SUBMITTED BY:
PALKEET SINGH
BBA Final Yr
Regd. No. : 2007.GIM/A.143
1
Date: 15th June, 2009
CERTIFICATE
Akhilesh Kumar
Marketing Manager
2
ACKNOWLEDGEMENT
Signature
PALKEET SINGH
BBA – Final Yr
GUIDE CERTIFICATE
3
This is to certify that the project titled “COMPARISON OF AIRTEL
WITH RELIANCE INFO COMM” is an original work of Mr.
PALKEET SINGH, Enrollment student of Guru Nanak Institute of
Management & IT , New Delhi submitted in partial fulfillment of the
requirements for the award of Bachelor of Business Administration (BBA)
(2007-2010) under the guidance of the committee.
CONTENTS
4
S.No TOPICS PAGE
No.
1. CHAPTER -1
6-8
Introduction :-
2. CHAPTER -2 9-16
Research Methodology :-
3. CHAPTER -3 17-32
4. CHAPTER -4 33-58
Company profile -:
♦ Vision
♦ Strategic Objective
5. CHAPTER -5 59-86
♦ Comparison
♦ Swot Analysis
6. CONCLUSION:- 87-88
BIBLIOGRAPHY:- 89
ANNEXURE -: 90-92
♦ QUESTIONNAIR:-
5
CHAPTER -1
INTRODUCTION
INTRODUCTION -:
6
The project title “Comparison of AIRTEL with Reliance
markets its strategies and how the company has been able in
begins with the history of the products and the introduction of the
7
2. To study the market of Airtel Industry and Reliance InfoComm. On
Reliance InfoComm.
8
CHAPTER -2
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY -:
9
Achieving accuracy in any research requires a deep study regarding
data via which the most recent and accurate piece of first hand
Questionnaire Method
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.
10
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:-
11
DATA COLLECTION METHOD
• PRIMARY DATA
• SECONDARY DATA
PRIMARY DATA:
• QUESTIONNAIRE SURVEY:
12
SECONDARY DATA:
13
METHOD OF COLLECTION: -
RESEARCH INSTRUMENT:
QUESTIONNAIRE
14
Scope of the study
# To conduct this research the target population was the mobile users,
conducted.
# Internet
# Magazines
# Newspapers
15
LIMITATIONS:
The following were the limitations that were there during the course of the
study:
1. Limited time period.
2. Less number of respondents.
1. Questionnaire Method
3. Observation Method
The main tool used was, the questionnaire method. Further direct
works in.
16
CHAPTER -3
17
HISTORY -;
and the rapid growth of exports. Key to achieving these goals was a
In India, the telecom service areas are divided into four metros (New
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
licenses for each metro and circle. Thirty-four licenses for GSM900
service was provided by, Modi Telstra in Kolkatta 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
18
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was
introduced in the Lok Sabha, and the president officially announced the
High license fees and excessive bids for the cellular licenses put
many operators failed to pay their license fees and were in danger of
was put in place (New Telecom Policy [NTP] 1999). Under this new
19
3.1 INDIAN CELLULAR MARKET - EARLIER
1994-96 was beset by several problems for 3 - 4 years till the New
20
High license fees
different bodies.
21
Issues relating to unfavorable interconnect terms for private operators,
and allocation and the like remained unresolved for long periods.
22
Foreign ownership / change of partner limitations
a matter of routine allowing ease of entry / exit - paves the way for full
to zoom
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
23
In recent years, many foreign companies had pulled out from their
and bureaucracy. In 1999 alone, Swiss COM pulled out from Sterling
Fascel. In June 2001, British Telecom exited from Bharti Cellular. Bell
South International has also indicated its intention to pull out from Sky
24
Usha Martin Telecom, thus circumventing the 49 percent limit on
Five companies together bid Rs16.3 billion to bag the licenses for the
the No. 1 bidder with eight new licenses, followed by Escotel with four,
Hutchison with three, and Reliance and Idea cellular with one each.
circles while Idea is set to launch in Delhi. Escotel and Reliance have
BHARTI, the third cellular operator for Delhi and Mumbai, started
25
operator, launched services in Kolkatta and Bihar in January 2002.
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
Future rate cuts are expected, which will drive demand, together with
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
services.
uptake remains elusive. While both Bharti and Idea have GPRS-
26
With hardly any applications, the success of GPRS remains a
question.
rail system and cabs are used widely to carry the message of mobility.
27
All along, customer acquisition and the top line have been the focus.
and Short Message Service (SMS) will get them the numbers but not
the margins, some are now seriously looking at the enterprise segment
services are also quite popular, especially among fast food centers that
28
enterprises both in the service as well as the fast-moving consumer
goods (FMCG) segment that have a large field force and need to
movement of goods from warehouse to the retail outlet. Banks too find
customers.
29
• Limited mobility wireless in local-loop services (by fixed network
next major policy document, which was produced, was the National
liberalization.
Year Event
30
services
metros
January 1995 Tenders for 2nd operator in basic services apart from
The National Telecom Policy of 1994 document, which laid out broad
and a PCO pop of 500. The Eighth Plan had also allowed private
was divided into 20 circles (akin to a state) for basic and 21 circles for
a circle.
every circle will have one private operator apart from Dot/ BHARTI for
31
basic and two operators for cellular. Dot/ BHARTI have the option to
Government did not achieve most of its stated targets. The basic
theme, which was broadening the reach of telephony in India, has not
The regulator TRAI was set up after delays and confusion and even
after its creation, Dot continued to fight with it in courts. It was also
BOOT and BOLT was not used at all. The major policy direction it
showed was to allow private sector entry in both basic and value
added services. The intention, though noble failed to achieve its goals
and allowing one private operator per Circle to compete with Dot. An
32
announced in 1998 allowing independent service providers to enter the
33
CHAPTER -4
COMPANY PROFILE
34
COMPANY PROFILE -:
Vision
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.
services.
sector. With many firsts and innovations to its credit, ranging from
being the first mobile service in Delhi, first private basic telephone
Services in India.
35
Bharti had approximately 3.21 million total customers – nearly 2.88
circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In
36
Bharti Tele-Ventures' strategic objective is -:
services”.
strategic objective:
operational efficiencies.
37
Businesses
• Mobile services
• Fixed-line
Competitive Strengths
38
• The strong brand name recognition and a reputation for offering
skills; and
Brand Architecture:
architecture — to:
39
BHARTI
AirTel - The flagship brand for cellular operations all across the
country.
telephony
40
Though the costs of creating new brands are heavy but the group
Brand Strategy:
To understand the brand strategy, let’s first look at the brand building
When the brand was launched seven years ago, cellular telephony
says that such a strategy would not have worked for the simple reason
41
that the value from using the phone at the time was not commensurate
sensory benefit it gave to the customer as the main selling tack. The
successful men with their laptops and in their deluxe cars using the
aspirational 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 —
These were valuable qualities, but they only took Airtel far enough to
42
Sachdev and his team realized that in a business in which customer
roughly the same level of service and schemes, it had now become
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 leadership series was okay when you were wooing the crème de
la crème of society. Once you reached them you had to expand the
By that time, Bharti was already the leading cellular subscriber in Delhi
with a base of 3.77 lakh (it now has 1.2 million customers). And with
How could Bharti leverage this leadership position down the value
43
directing subordinates to execute orders but to work along with a team
Also, a survey showed that 50 per cent of the new customers choose a
important tool for market expansion and Bharti now focused on building
That is precisely what the brand tried to achieve through its new
designed to highlight the relationship angle and make the brand softer
now realizing that there are new compulsions to rework the Airtel
brand, and a new exercise is being launched to this effect. Right now,
44
the company is unwilling to discuss the new positioning in detail. But
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.
for those who are “young at heart”. With its earlier positioning, Airtel
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
exercises around the scheme — like a special portal for young people
45
The company is now looking at offering other services at affordable
and bundling SMS rates with normal calls to make it cheaper for young
people to use.
The idea was to bring Internet and mobile in perfect harmony. “The
name was chosen from the popular movie title It Takes Two To
that the branding exercise could be revived because Tango will be the
46
The Magic:
Perhaps the more ambitious experiment has been with Magic — the
pre-paid card. The idea was to make the brand affordable, accessible
even faster.
PHASE I –
the market and assure him that he would have to pay only if he made a
connection with its relatively high rentals (pre-paid cards do not include
rental charges).
to operate.
47
• Third, to make the product more “approachable” to the
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
customers — that is, customers who were already inclined to opt for
mobile services. But now, with basic service providers having been
the exact strategy is under wraps, insiders say the new branding
strategy would be aimed at offering them value which they had not
48
PHASE II -
TV brand campaign
connect the category to the lives of the SEC B & SEC C segment –
life.
mobile card.
49
Airtel today unveiled its strategy for market expansion with the launch
of its new Airtel Magic pre-paid card brand campaign – ‘Magic hai to
Segment defined as young adults, 15-30 years of age; in the Sec B &
of their lives.
make all their dreams, hopes & desires come alive… instantly. (At just
horizons. It gives you the freedom to control your life in a way never
with Airtel Magic. The new brand slogan ‘Magic hai to Mum kin hai’
tone, manner & language of the masses. The “Mum kin hai”
value proposition will help us expand the market and gain a higher
50
The brand ambassadors Shahrukh Khan and Kareena Kapoor embody
this ‘can do’ or “Mumkin Hai” spirit (infact that is the reason they were
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
The genre of this new strategy & campaign is Hindi cinema led. This
The new TV campaign of Airtel Magic crafted in the Hindi film idiom,
on Kareena Kapoor and wins her love with the help of Airtel Magic.
The strategy & new brand campaign is targeted at the large untapped
51
The estimated addressable market of such customers in the next two
PHASE III -
TV brand campaign
• First time ever in India - any pre-paid card brand gives such
52
• Shahrukh Khan makes ‘everything in life possible’ Airtel today
unveiled its strategy for market expansion with the launch of it’s new
make all their dreams, hopes & desires come alive… instantly .At a
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
possible is possible with Airtel Magic. The new brand slogan ‘Aisi
azadi aur kahan has been specially created to capture this effectively.
53
Other Brand Building Initiatives:-
The main idea is to stay ahead of competition for at least six months.
across the country for services like customer care, food services
subscriber
54
• base) would come from the pre-paid card segment. So,
• Bharti, for the first time for a cellular operator, has decided
facility would be limited to the region in which they buy the card.
Airtel community.
55
camera can take pictures and e-mail it to friends or store it in the
services) and about 250 Airtel Points which were kiosks in larger
shops. Now activation can be done by all of them, and not only
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
cards.
56
recharge their cards by just making a phone call to the shop.
subscribers.
reminder calls for bill payment, customers can also call Care
57
Bharti’s View on its Branding strategy:-
services) across the world are more informed and, at the same time,
58
advertising and promotion are less relevant. On the contrary, with more
It is, however, crucial to note that in the years to come, not only will the
continue to rise but also the time taken to do so will be longer and will
59
CHAPTER -5
DATA ANALYSIS & INTERPRETATION
60
DATA ANAYSIS -:
The sub main purpose of this report is to compare the Airtel with its rival
Reliance InfoComm.
Communication sector.
■Since its launch Reliance info. has been adopting aggressive marketing
Strategies.
61
■The comparison shows how reliance info. Captured 22% market share in
62
Brand positioning by Bharti Airtel
Market segmentation
Geographical segment (metropolitans & cities India)
Target marketing
People living cities and towns.
Businessmen
Positioning
Creating brands (Shahrukh khan & Sachin Tendulker)
Marketing mix
Price : low price strategy
63
STRATEGIES OF RELIANCE INDIA MOBILE.
By offering cheap and light mobile sets Rim attracts most of the customers
Of small villages and towns.
64
Brand positioning by Rim
Market segmentation
Target marketing
People living in small towns and villages.
Businessmen
Positioning
Creating brands
Marketing mix
Price : low price strategy
65
Schemes started by RIM
66
Call unit Plan 1000 Plan 1500 Plan 2000
Length(Pulse @ Re. 1.00 / @ Rs. 0.90 / @ Rs. 0.85 /
)(Sec.) Pulse Pulse Pulse
Local
Calls
(including
180 0.33 0.30 0.28
Intra-
circle < 50
kms)
Calls to Fixed Intra-
lines circle > 50 60 1.00 0.90 0.85
kms
0-
50 90 0.67 0.60 0.57
Inter- kms
circle
> 50
30 2.00 1.80 1.70
kms
Intra-
120 0.50 0.45 0.43
circle
Calls to RIM
Inter-
60 1.00 0.90 0.85
circle
Intra-
60 1.00 0.90 0.85
Calls to other circle
mobiles Inter-
30 2.00 1.80 1.70
circle
67
Call Rates to Satellite Phones by RIM
Call Charges
ISP Call Total
Depicted for
Charges Unit Rate / Effective Charges
Plan 1000
(Rs./Min.) length Call Unit Rate / Rs/ Hr.
(Pulse) (Rs.) Min (Rs.)
(Sec.)
Peak Hour
Rates on all
0.10 450 1.00 0.13 14
days
(06:30 - 22:30)
Off-Peak Hour
Rates on all
0.10 900 1.00 0.07 10
days
(22:30 - 06:30)
Call Unit
Region Rate (Rs.)
Length (Pulse) (Sec.)
Atlantic Ocean - East 1 5.83
Pacific Ocean 1 5.83
Indian Ocean 1 5.83
68
Schemes and plans by Bharti Airtel
69
Tax
70
Services provided by Bharti Airtel
• Fixed-line connections
• Broadband services
●Universal Internetworking
●Interactive Television
●Visual Communication
●Broadband Portal
●Telecommuting
71
Subscriber numbers in (mn) held by
Reliance and AIRTEL
72
Source.TRAI
73
74
MARKET PLAYERS IN TELE
COMMUNICATION
75
M AR KET SHAR E
40
35
30
25 R e lia n c e
20 A irte l
T a ta
15
BSNL
10
5
0
L a n d l Bi nr eo a d b a n d
76
T im e t o p r o v id e s e r v ic e in d a y s
40
35
30
25 R e li a n c e T a k e m o r e
R e lia n c e ti m e i n c o m p a ri s o n to
20
A irte l A i rte&l T a tath a t’ s
15 T a ta w hy com pa ny
10 BSNL lo o s i n g t h e i r
5
c u s to m e r, a n d
m a r k e t p o s i ti o n
0
RFS
A re a
77
FINDINGS AND ANALYSIS
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
78
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.
79
Occupation Graph
OCCUPATION
10% 15%
20%
55%
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
callers etc. who require mobile for their official purposes. The next
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
80
Service Provider Graph
The above graph shows a slice of 50%. These are the total no. of
people who are using Airtel. It seems that people are more aware of
Airtel than any other brand. The next popular brand is Hutch. 305 of
the people interviewed had Hutch connections. The next popular brand
was Idea. 15% people had Idea connections. As it came very late in
the market when Airtel had established it self very well. So, that could
81
Customer Service At Airtel Graph
10%
60%
FULLY PARTIALLY
DISSATISFIED FULLY DISSATISFIED
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
consumer. He can even switch over his brand. 20% of the people
seemed partially satisfied with the customer services and only 10%
82
Type Of Card Graph
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.
83
Monthly expense graph
Monthly Expense
12%
24%
Rs 600
Rs 450
Rs 200
64%
expense. 64% people spend this 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
their mobiles.
84
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.
85
SWOT ANALYSIS
Strengths
products.
margins.
86
Weakness:
segment.
Opportunities:
years.
87
Threats
88
CONCLUSION
After analyzing the findings of the research, I can conclude that Airtel
mobile is in the age group of 20 to 28. Cash cards are the most
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
having a good position just because every time, it tries its best to
89
From the comparison and deep analysis of every aspect of business of
both the companies we can conclude that bharti Airtel has to more
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,
Airtel has to take Reliance info. Very seriously and update its own
90
BIBILIOGRAPHY
BOOKS:-
NEWSPAPER:-
Times Of INDIA.
WEBSITES
WWW.GOOGLE .CO.IN
WWW.AIRTEL .COM
91
ANNEXURE
92
QUESTIONNAIRE OF CUSTOMER
Post-paid Pre-paid
Yes No
Yes No
9. If No, why?
93
Expensive Less Visits Both
Others
None of them
12. Are you satisfied with the billing structure of your mobile
phone?
Yes No
94