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Airtel and Vodafone Marketing Analysis

Airtel and Vodafone Marketing Analysis

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Published by: Lakshya Tanwar on Sep 20, 2010
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3rd sem Roll No. 083 SUBMITTED TO Mrs. Anjali Singh lecturer Jagannath international management school Vasant kunj New Delhi

ACKNOWLEDGEMENT I Deepanshu Tanwar, sincerely thankful to all those people who have been giving me any kind of assistance in the making of this project report. I express my gratitude to Mrs. Anjali, who has through her vast experience and knowledge has been able to guide me, both ably and successfully towards the completion of the project. I express my gratitude to Jagannath international management school.

I would hereby, make most of the opportunity by expressing my sincerest thanks to all my faculties whose teachings gave me conceptual understanding and clarity of comprehension, which ultimately made my job more easy. Credit also goes to all my friends whose encouragement kept me in good stead. Their continuous support has given me the strength and confidence to complete the project without any difficulty. Last of all but not the least I would like to acknowledge my gratitude to the respondents without whom this survey would have been incomplete.


I, deepanshu tanwar hereby declares that the project report under title “Comparative Analysis of Marketing Strategies of Vodafone & Airtel.” Is my own work it is the analysis of the big scale sector of communication. This project involves the big scale services involved in telecommunication sector provided by Airtel and Vodafone to its customers. The survey was conducted so as to analyze the big scale sector prevailing in the current industry and the improvement that can be made upon it. All care has been taken to keep this report error free and I sincerely regret for any unintended discrepancies that might have crept into this report. I shall be highly obliged if errors (if any) be brought to my attention.

Thank You Deepanshu tanwar

introduction of the topic • Telecom sector in India • Airtel • Vodafone • Background • Company profile of Airtel • The magic • Comparison between marketing strategy of Bharti Airtel and Vodafone 6. Data Analysis and Interpretation 8. objectives of the study 5. Need of the study 4. Suggestion & Conclusion 10.CONTENT 1. Recommendations 11. Synopsis 2. Research Methodology • Type of research methodology • Data collection method • Method of collection 7. Bibliography . Swot analysis 9. introduction 3.

Questionnaire  .12.

To identify the difference between market performance of Airtel industry and Vodafone. 5. manufacturing process. This survey research may be also aimed as to estimate potential buyer for the product. technology adopted production policy. 4. advertising.OBJECTIVE OF THE STUDY Every organization has to achieve its organization goals. To know how the company has been successful in encountering the aggressive marketing strategies of competitors. export scenario. 3. For this it is very essential for an organization to know about the view of consumers and their competitive products. To study the market of Airtel Industry and Vodafone on big scale telecommunication sector. . To study customer buying behavior and factors which influence the purchase decision process. The objective of the study is as under:- 1. collaboration. future prospect for the two companies and government policies. To compare various parameters of marketing strategies. 2.

the questionnaire method. The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. where a face-to-face formal interview was taken. 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. Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was. as one continuously observes the surrounding environment he works in.\ RESEARCH METHODOLOGY Achieving accuracy in any research requires a deep study regarding the subject. Secondary data has been used to support primary data wherever needed. Lastly observation method has been continuous with the questionnaire method. . Further direct interview method.


SECONDARY DATA: . as one continuously observes the surrounding environment he works in. PRIMARY DATA: PRIMARY DATA IS THAT WHICH IS THE COLLECTED FOR THE FIST TIME AND THUS HAPPEN TO BE ORIGINATED IN CHARACTER. THE QUESTIONNAIRE CONSISTS OF 15 QUESTIONS. QUESTIONNAIRE SURVEY: IN THE STUDIES A QUESTIONNAIRE IS PREPARED. • PRIMARY DATA • SECONDARY DATA Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was. the questionnaire method.DATA COLLECTION METHOD THERE TWO TYPE OF METHOD OF DATA COLLECTION. where a face-to-face formal interview was taken. Lastly observation method has been continuous with the questionnaire method. DATA USED FOR THE RESEARCH WORK WAS PRIMARY IN NATURE. Further direct interview method.



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

63%.87 million in July 2007.SYNOPSIS Telecom Sector In India Than 125 million telephones network is one of the largest communication networks in world. 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 24.62 million at the end of January 2008 as compared to 232.63% in January 2008 as compared to 21. The overall Teledensity has increased to 23. Network Expansion: The total number of telephone subscribers has reached 281. Today. The rapid growth in the telecom sector can be attributed to the various proactive 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 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. increasing preference for mobile phones and higher contribution of private sector in the incremental growth have predominated the telecom sector. . which continues to grow at a blistering pace.20% in August 2007. The telecom sector has shown impressive growth during the past decade. more Two striking features of this growth viz.

The share of private sector has risen to 85 per cent in December 2007 from 64. Increasing Role of Private Sector: The private sector has played a significant role in the growth of telecom sector. Telecom Regulatory Authority of India (TRAI): TRAI was established under the Telecom Regulatory Authority of India Act.83 million at the end of March 2007.40 million by Jan 31 2008. TRAI has endeavored to encourage greater corporation in the telecom sector together with better quality and . (NTP) 1999.77 million subscribers last month compared to 8. This pushed the total wireless subscribers base to 242.63%at the end of January 2008 as compared to 18. registering an increase of 6%. The long distance domestic as well as international charges have also fallen considerably. The minimum effective charges for local calls have fallen considerably in recent months especially for cellular service. Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due to increased competition. The Teledensity is 24. The goals and objectives of TRAI are focused towards providing a regulatory framework that facilitates achievement of the objectives of New Technology Policy affordable prices.31% at the end of March 2007. Teledensity: The gross subscriber base reached 206.Wireless Service: The wireless segment saw a surge of 8.16 million at the end of January 2008. Wire line Subscribers: The wire line segment subscriber base stood at 39. 1997 enacted on March 28.1997.17 million in December2007.73 million with a decrease of 0.14 per cent in November 2006.

the telecom service areas are divided into four metros (New Delhi. As a result. the Indian government adopted a new economic policy aimed at improving India's competitiveness in the global markets and the rapid growth of exports. while West Bengal and Assam had only one bidder each. three circles or both. Chennai and Kolkata) and 20 circles." with the "A" circle being the most attractive and "C" being the least attractive. Modi Telstra in Kolkata in August 1995. The circles are further classified under "A. which roughly correspond to the states in India. a new telecom policy was put in place (New Telecom Policy [NTP] 1999). these functions were the sole responsibility of the DOT.A brief history of Tele sector in India In the early 1990s. and the president officially announced the TRAI ordinance on 25 January 1997. Mumbai." "B" and "C. The first cellular service was provided by. the old fixed-licensing regime was to be replaced by a revenue-sharing . For the auction. diverting funds away from network development and enhancements. In 1996. it was stipulated that no firm can win in more than one metro. by 1999 many operators failed to pay their license fees and were in danger of having their licenses withdrawn. The regulatory body at that time — the Department of Telecommunications (DOT) — allocated two cellular licenses for each metro and circle. High license fees and excessive bids for the cellular licenses put tremendous financial burden on the operators. Prior to the creation of TRAI. In March 1999. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders. Under this new policy. licensing and telecom operations. In India. Thirty-four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. Key to achieving these goals was a world-class telecom infrastructure. the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha. The government decided to set up TRAI to separate regulatory functions from policy formulation.

.scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.

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

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

Introduction of the topic .

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


Himachal Pradesh. first private basic telephone service provider in the country." These are the premise on which Bharti Enterprises has based its entire plan of action.Vision "As we spread wings to expand our capabilities and explore new horizons. Gujarat. Delhi. Madhya Pradesh circle. Kerala. The Company is also implementing a submarine cable project connecting ChennaiSingapore for providing international bandwidth.88 million mobile and 334. Karnataka. Bharti had approximately 3. Tamil Nadu and Uttar Pradesh (West) circle. Established in 1985. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world-class products and services.000 fixed line customers. With many firsts and innovations to its credit. Karnataka and Tamil Nadu and nationwide broadband and long distance networks. Haryana. Its services sector businesses include mobile operations in Andhra Pradesh. Mumbai. Chennai. 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. In addition.21 million total customers – nearly 2. it also has fixed-line operations in the states of Madhya Pradesh and Chhattisgarh. Haryana. Delhi. Kolkata. 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. . ranging from being the first mobile service in Delhi. Bharti has been a pioneering force in the telecom sector. Punjab. Maharashtra circle. 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.

it is also the first telecom company to export its products to the USA. and Emphasize on human resource development to achieve operational efficiencies. Focus on satisfying and retaining customers by ensuring high level of customer satisfaction. Offer multiple telecommunications services to provide customers with a "onestop shop" solution. Capture maximum telecommunications revenue potential with minimum geographical coverage. • • • • • . with a focus on providing mobile services”. Position itself to tap data transmission opportunities and offer advanced mobile data services.Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments. 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. The Company has developed the following strategies to achieve its strategic objective: • • Focus on maximizing revenues and margins. Leverage strengths of its strategic and financial partners.

Focus on telecommunications to enable the Company to better anticipate industry trends and capitalize on new telecommunications-related business opportunities. Quality management team with vision and proven execution skills. and • • • . 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 .Businesses Bharti Tele-Ventures current businesses include • • • • • Mobile services Fixed-line National and international long distance services VSAT.approximately 92% of India's total mobile subscribers resided in the Company's fifteen mobile circles. The strong brand name recognition and a reputation for offering high quality service to its customers. These 15 circles collectively accounted for approximately 56% of India's land mass.

Warburg Pincus. . International Finance Corporation. 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. 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.• The Company's strong relationships with international strategic and financial investors such as SingTel.

BHARTI AIRTEL (Cellular Operations) TOUCHTEL (Basic Service Operations) INDIA ONE (National Long Distance) Airtel .The brand earmarked for basic service operations.The flagship brand for cellular operations all across the Indian country. Brand Strategy: . Touchtel . 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”.

Did it work? Repeated surveys following the launch showed that there were three core benefits that were clearly associated with the brand — leadership. Bharti could have addressed the customer by rationally explaining to him the economic advantage of using a mobile phone. there was no emotional dimension to the brand — it was perceived as cold. 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. let’s first look at the brand building exercise associated with Airtel — a brand that had to be repositioned recently to address new needs in the market. So the Airtel “leadership series” campaign was launched showing successful men with their laptops and in their deluxe cars using the mobile phone. dynamism and performance. for customers who stood out in a crowd. 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.To understand the brand strategy. it meant Airtel was positioned as an inspirational brand that was meant for leaders. In simple terms. cellular telephony wasn’t a mass market by any means. These were valuable qualities. but they only took Airtel far enough to establish its presence in the market. . it became necessary for Airtel to appeal to a wider audience. When the brand was launched seven years ago. distant and efficient. As tariffs started dropping. we decided to address the sensory benefit it gave to the customer as the main selling tack.” he explains. For the average consumer. And the various brand-tracking exercises showed that despite all these good things. “Instead of the value-proposition model. The idea was to become a badge value brand.

The reason with tariffs identical to competitor Vodafone telecomm and roughly the same level of service and schemes. Thus. How could Bharti leverage this leadership position down the value chain? Surveys showed that the concept of leadership in the customer’s minds was also changing.8 million customers). What they needed was to become Singapore Airlines. And with tariffs becoming more affordable — as cell companies started cutting prices — it was time to expand the market. efficient but also human. family or colleagues. . The leadership series was okay when you were wooing the crème de la crème of society.77 lakh (it now has 1. it had now become important for Bharti to “humanize” Airtel and use that relationship as a major differentiation. Leadership did not mean directing subordinates to execute orders but to work along with a team to achieve common objectives — it was. The brand had become something like Lufthansa — cold and efficient. By that time. Also. Bharti was already the leading cellular subscriber in Delhi with a base of 3. Once you reached them you had to expand the market so there was need to address to new customers. a survey showed that 50 per cent of the new customers choose a mobile phone brand mostly through word-of-mouth endorsements from friends. A change in tack was important because this was a time when the cellular market was changing. existing customers were an important tool for market expansion and Bharti now focused on building closer relationships with them. again. a relationship game that needed to be reflected in the Airtel brand.Sachdev and his team realized that in a business in which customer relationships were the core this could be a major weakness.

But broadly. Says Sachdev: “The new campaign and positioning was designed to highlight the relationship angle and make the brand softer and more sensitive. To bring in new customers. Airtel hoped to reverse that. One such experiment. Airtel offered rock bottom tariff rates (25 paise for 30 seconds) at night to Youtopia customers — a time when they make the maximum number of calls. the company decided that it needed to segment the market. 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. the company is unwilling to discuss the new positioning in detail.” 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. there was nothing for younger people. Airtel was perceived as a brand for the well-heeled older customer. launched last year. is Youtopia. In order to deliver the concept. and a new exercise is being launched to this effect. 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. This set of campaigns portrayed mobile users surrounded by caring family members. the focus is on positioning Airtel as a power brand with numerous regional sub-brands reflecting customer needs in various parts of the country.That is precisely what the brand tried to achieve through its new positioning under the Airtel “Touch Tomorrow” brand campaign. . It also set up merchandising exercises around the scheme — like a special portal for young people to buy things or bid for goods. If Airtel is becoming more humane and more sensitive as a brand. With Youtopia. Right now.

you need the two services to tango to offer customers a new choice”. The other experiment that Bharti has worked on is to go in for product segmentation through the Tango brand name. This. . had less to do with the branding exercise as with inefficiency of service (accusingly slow download speeds) and the limited utility of WAP services. “The name was chosen from the popular movie title It Takes Two to Tango: basically. Subsequently.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. says Sachdev. 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 ads were withdrawn. The brand was created to offer mobile users Internetinterface services or what is known as WAP (Wireless Application Protocol). The idea was to bring Internet and mobile in perfect harmony. however.

accessible and. 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). most importantly. to make the product more “approachable” to the customer. • • reach. . • Third. the product was made available at prices ranging from Rs 300 to Rs 3.000 with no strings attached and was simple to operate. telephone booths and even kirana shops so that the offering was well within arms came with vernacular ad campaigns Like “Magic Daalo Say Hello” which appealed to local sensibilities. PHASE I – Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure him that he would have to pay only if he made a call. the product was made accessible and distributed through small stores. feasible as a means of expanding the market even faster. the company One. Two.The Magic Perhaps the more ambitious experiment has been with Magic — the pre-paid card. The idea was to make the brand affordable. To achieve its objectives Bharti did three things.

the company roped in Karisma Kapoor and Shah Rukh Khan for a major ad campaign all across Delhi.This apart. While the exact strategy is under wraps. which was launched much ahead of Magic. . overtaking Essar’s branded pre-paid card Speed. But now.2 million today. customers who were already inclined to opt for mobile services. That is why the new exercise is aimed at co-opting non-adopters. Earlier. The company is now re-working its Magic strategy even further. with basic service providers having been allowed limited mobility at far cheaper rates. mobile service providers could find themselves under threat again. the branding strategy was aimed at roping in only interested customers — that is. 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.47 lakh to 1. a ruse that saw the number of subscribers go up from 5.

ambitions & aspirations instantly possible. Airtel Magic positions itself on the platform of being excellent for emergency situations . (At just Rs. tone & language created to connect the category to the lives of the SEC B & SEC C segment – the middle class nonmobile user.user imagery. hopes & desires come alive… instantly.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 .increasing productivity as a part of everyday life.PHASE II Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion through India’s first national pre-paid card TV brand campaign • • First time ever in India .romance driven strategy platform makes the value proposition of Airtel Magic . The new campaign for Airtel Magic is all about empowering millions of Indians to be on top of their lives. India’s leading pre-paid mobile card. The strategy is targeted at the non-user segment defined as young adults. context. The value proposition is centered around a person’s desire to make all his / her dreams. letting you befriend the world and . Sharukh Khan makes ‘everything in life possible’ while romancing pretty Kareena Kapoor with Airtel Magic. 15-30 years of age.per month Airtel Magic is so easy to buy. • • • • 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’. in the Sec B & C segment is aimed at accelerating market expansion.300/.‘Mumkin Hai’ come alive All elements .) Improving productivity. The brand is positioned to be relevant to the mass-market who want to make all their dreams.

hard work and the sheer ability to make a mark in such a short time.opening up new horizons. talent. 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). This genre connects millions across India. The genre of this new strategy & campaign is Hindi cinema led. This strategy is designed to help us talk to this segment directly in the tone. sets his eyes on Kareena Kapoor and wins her love with the help of Airtel Magic. B & C. Both these stars have said ‘Mumkin hai’ and made it happen for themselves. . in the endearing situation of a boy-girl romance. Where Sharukh Khan. manner & language of the masses. Sharukh rose from a TV actor to become India’s top film star and national heartthrob. well known to most as Bollywood. holds millions of Indians together as one. dancing… the Indian cinema. (Poignantly conveying that special feeling we all get when a dream is made possible and a victory of the heart is won). The new brand slogan ‘Magic hai to Mumkin hai’ has been specially created to capture this effectively. anything that you think is possible is possible with Airtel Magic. The spirit of romance. Indeed. The new TV campaign of Airtel Magic crafted in the Hindi film idiom. magnifies the empowering optimism of “Mumkin Hai”. The estimated addressable market of such customers in the next two years is around 25 million in Airtel’s 16 states. The “Mumkin hai” value proposition will help us expand the market and gain a higher percentage of market shares in the process. Kareena’s success is due to her ‘attitude’. The new strategy aims at correcting the perception that the mobile category is useful mainly for ‘business’ or ‘work’ related scenarios. It gives you the freedom to control your life in a way never possible before. The strategy & new brand campaign is targeted at the large untapped base of intending mobile customers from Sec A.

The campaign has been created by Percept Advertising. .The new strategy. brand positioning & brand slogan is an outcome of an extensive nationwide research and is an integral part of Airtel Magic’s new multi-media campaign.

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 . It gives you the freedom to control your life in a way never possible before.‘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’. letting you befriend the world and opening up new horizons.Improving productivity. . anything that you think is possible is possible with Airtel Magic. The value proposition is centered on a person’s desire to make all his / her dreams. ambitions & aspirations instantly possible. hopes & desires come alive… instantly .romance driven strategy platform makes the value proposition of Airtel Magic . .At a amount of your choice you can recharge your account with available validity time . The new brand slogan ‘Aisi azadi aur kahan’ has been specially created to capture this effectively.PHASE III Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion through India’s first national pre-paid card TV brand campaign • First time ever in India . • • • The brand is positioned to be relevant to the mass-market who want to make all their dreams. The new campaign for Airtel Magic is all about empowering millions of Indians to be on top of their lives. Indeed.

of course. has decided to offer roaming services even to its pre-paid customers. customers moving from one place to another do not have to close and then again open new accounts at another place. .000 frequently asked questions and their answers have been stored on the computers.Other Brand Building Initiatives:The main idea is to stay ahead of competition for at least six months. Airtel has devised common numbers for subscribers across the country for services like customer care. food services and cinema amongst others. they must be given value-added products and services which competitors don’t provide. Working on the above game plan Bharti is constantly coming up with newer product offerings for the customers. • Bharti. To ensure that customers don’t migrate to other competing services (which is known as churn and ranges from 10 to 15 per cent of the customer base every month). but the facility would be limited to the region in which they buy the card. • To assist customer care personnel to deal with subscriber queries. is to offer better quality of service. • It will also launch a unified billing system across circles so. The focus. for the first time for a cellular operator. This will offer subscribers tangible cash benefits depending upon their usage of the phone. a storehouse of 40. So. • 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. • To make the service simpler for customers using roaming facilities. the company is also working on a loyalty program.

The cost per picture is between Rs 5 to Rs 7. A key area is to increase the number of activation centers. In comparison. It is often available even with paanwalas. it will provide real benefits to customers. 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. • Pre. First. the competition takes two to four hours.• • The loyalty program will not be only for a ‘badge value’. 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. the game is now moving beyond price to expanding distribution reach and servicing a well-spread-out clientele with technology and strategic alliances. • Bharti is also aware that it has to make owning a ready-to-use cellular service much easier than it is today.paid cards are really catching up with the mobile phone users and it is actually helping the market to increase. As befits a fast-moving consumer service. Now activation can be done by all of them. they are easier to obtain and convenient to use. • 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 . The idea is to create an Airtel community. and not only by Connect outlets. • The company also offers multi-media messaging systems under which customers having a specialized phone with a in-built camera can take pictures and email it to friends or store it in the phone. Unlike post-paid. 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. one need not pay security deposits for picking up a pre-paid card. all within 15 to 20 minutes.

• Bharti Cellular has also launched a special service. Highly interactive VJ based show with real-time feedback mechanism. Apart from improving the convenience of recharging. 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.' a company delivering food at home. service on priority basis.his subscription by just swiping a card. • Bharti Televentures has tied up with 'Waiter on wheels. CareTouch. • Airtel presented MTV Inbox. They are leveraging technology to expand their distribution network and deliver round-the-clock recharge options to its MOTS (Mobile on the Spot) subscribers. Both brands joined hands to target the high growth youth segment. The company is constantly innovating to enhance the value proposition for its pre-paid service. The company is also joining hands with local grocery shops which will enable users to recharge their cards by just making a phone call to the shop. corporate customers. for high-value. the first ‘on-air’ SMS based interactive music dedication show exclusively for Airtel and Airtel Magic customers. Dedicated ‘CareTouch’ executives are expected to assist customers with any service on priority basis. customers can also call CareTouch for bill payments at free of cost. to reach its Magic pre-paid cards to subscribers' doorsteps. single-point access for any assistance they require. and value-added services without any additional paper work. which includes easier payment of bills. Besides the regular proactive reminder calls for bill payment. Bharti Cellular is offering a range of services without going through an interactive voice recorder ensuring that they save time. mobile operators are beefing up their distribution channels. Customers can dial 777 and enjoy a slew of services. providing them with instant. .

becoming more individualistic in their needs and far more demanding with the passage of time. . 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. On the contrary. Pro-active tracking of shifts in consumer behavior. anticipating redefined or emerging customer needs. with more choices and higher media clutter. As far as allocation of time and financial resources are concerned.Bharti’s View on its Branding strategy:First. and delivery operations for the product itself. too many companies mistakenly allocate a disproportionate amount on mere advertising and promotion. production. 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. brand building efforts in today’s context have to be seen in a more holistic manner. Unflinching orientation to customer needs is the second key success factor. 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. at the same time. Customers (be it for industrial products or consumer goods and services) across the world are more informed and. Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts. The positive spin to this argument is that by first addressing the fundamentals. This is not to say that advertising and promotion are less relevant. 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.

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.It is. . however. crucial to note that in the years to come. Comparison of marketing strategies between Bharti 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.  Vodafone is the second largest player and share holder in Communication sector.  Bharti Airtel holds the lion share of market of communication sector. Vodafone has been giving tough competition to Bharti Airtel. .  However.

AD. Since its launch Vodafone has been adopting aggressive marketing strategies. Today deals in every business of communication sector.  With a different technology Vodafone creates its own market.  The comparison shows how Hutchison Essar Telecom.  Vodafone making and changing the strategies to capture the market shares .  Vodafone odafone. Captured 22% market share in one month of its first launch of postpaid subscription in 2002.

 Businessmen .middle income groups  People age group of 20 to 28 year Target marketing  People who living in cities and towns.Brand positioning by Bharti Airtel Market segmentation  Geographical segment (metropolitans & cities India)  Demographic segment .  Poor or middle income group people.  Youngsters in big cities.

.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


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.

BRAND POSITIONING BY VODAFONE .Targeting youngsters in metropolitans Vodafone attracts youngsters by offering colorful handset at very low prices.

 Businessmen Positioning  Creating brands  Ads and promotions Marketing mix .middle income groups Target marketing  People living in small towns and villages.  Poor and middle income groups.  Youngsters in big cities.Market segmentation  Geographical segment (rural India)  Demographic segment .

Internet services and network solutions Broadband services Services provided by Vodafone. ●mobile services with GSM technology ●fixed-line telephone services ●Universal Internetworking . 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.

●VoIP (Voice over Internet Protocol) ●Interactive Television ●Visual Communication .

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

. project financing being considered by most 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.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.

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

many foreign companies had pulled out from their cellular joint ventures in India due to the difficult operating environment and bureaucracy. In recent years. Kotak Mahindra Finance. Swisscom pulled out from Sterling Cellular. via Hutchison Telecommunications (HK).8 percent in a nation of over one billion people. The string of sell-outs notwithstanding. and Hong Kong-based Distacom is seeking to sell its stake in Spice Communications. In 2000. Through a partnership with local company. not everything is rosy. there has been a merger and acquisition wave sweeping across the Indian cellular industry in recent years. Hong Kong-based Hutchison Whampoa. First Pacific's (based in Hong Kong) continued commitment to Escotel is uncertain. Telstra from Modi Telstra and both the Telecom Organization of Thailand and Jasmine International from JT Mobile. and both Shinawatra of Thailand and Bezeq exited from Fascel. Usha Martin Telecom (mid-2000) and Fascel (September 2000). Hutchison Whampoa is also the controlling shareholder of Hutchison Max Telecom. Hutchison Whampoa practically controls Fascel and Usha Martin Telecom. Telecom Malaysia sold its stake in Usha Martin Telecom. acquired major stakes in Sterling Cellular (December 1999).2 DEVELOPMENTS IN THE CELLULAR INDUSTRY The interconnection regime between cellular operators and fixed-line operators is still biased against the former. and the former is reviewing various options. Despite the recent gains of the cellular industry. The cellular penetration rate is still very low at 0. thus circumventing the 49 percent limit on foreign ownership in Indian cellular operators. Bell South International has also indicated its intention to pull out from Skycell Communications. In 1999 alone. In June 2001. British Telecom exited from Bharti Cellular.2. Bharti Enterprises — another major . Not to be outdone.

basic and cellular services.3 billion to bag the licenses for the fourth operator slots in four metros and 13 circles. Bharti also acquired the Punjab license of Essar and started operations. giving competition to the lone operator there. Hutchison with three. this has been postponed until after mid October. However. Bharti is likely to merge all its cellular companies into one entity. This will be used to fuel its investment in long-distance. Spice Communications. which was later renamed Bharti Mobile (December 1999). most telecom circles will have four cellular operators. Once BSNL rolls out its service. the third cellular operator for Delhi and Mumbai. and Vodafone and Idea cellular with one each. launched services in Kolkatta and Bihar in January 2002. This was followed by Tamil Nadu in July 2002. In the midst of declining interest in technology stocks. Bharti came out with its longawaited initial public offering (IPO) in January 2002. and Skycell Communications renamed Bharti Mobinet (August 2000). Five companies together bid Rs16. BSNL. the company got a very good response from the primary market. A nationwide launch was scheduled for 2 October 2002. Escotel and Vodafone have not made any headway. BHARTI.5 times. as the third nationwide cellular operator. The total size of the IPO was 185 million shares at a floor price of Rs10. Going forward. netting Rs8. 1 bidder with eight new licenses. which will drive demand.cellular player — acquired control of JT Telecom. Future rate cuts are expected. Leveraging on the success of its cellular service.3 billion. There will be tremendous competitive pressure. Bharti emerged as the No. followed by Escotel with four. started services in March 2001. Bharti and Hutchison have already commenced operations in all the circles while Idea is set to launch in Delhi. together with falling handset prices and the introduction of prepaid services. which will result in lower tariffs. The issue was oversubscribed by more than 2. .

there is caution on their part to launch the service. While both Bharti and Idea have GPRS-enabled networks. 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. large-scale uptake remains elusive. . only BPL Mobile has launched commercial general packet radio service (GPRS) in Mumbai. With hardly any applications.As of October 2002. 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. However.

Others offer special privileges in retail outlets.Building visibility and awareness Deviating from competing on the price platform. Orange and BPL Mobile have been advertising aggressively on hoardings and kiosks. Cellular operators like Bharti. . cinemas and music shops. cellular operators are actively promoting their brand and service portfolio through high-visibility advertising and promotional campaigns. Orange in Mumbai offers "Orange Holidays" and "Orange Monsoon Offers" at very attractive rates and added benefits like discounts on airfare. Customer-focused activities are gaining traction among cellular operators with the establishment of longstanding consumer benefit programs. Public transport like the city rail system and cabs are used widely to carry the message of mobility. among others. food and beverages.

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

5G will enable operators to offer data services. forcing operators to constantly focus on differentiations to maintain their lead. thus there is less chance of a cartel being formed. • Limited mobility wireless in local-loop services (by fixed network service providers) will be a disadvantage for cellular operators in the short term. Consequently. • The entry of state-run operators like BSNL and BHARTI means that prices will no longer be controlled. This is an opportunity to customize and differentiate better. • The bigger the service provider's national presence. On the roaming front. the better it is for businesses. . signing up with a national operator is advantageous. • Network coverage in terms of geographic spread and quality of coverage is crucial especially for the business subscriber.There will be more competition. • The implementation of enhanced networks like 2. operators need to streamline their customer relation activities and adopt aggressive subscriber acquisition and retention strategies.

A document buried in the sands of time. a consequence of the on going process of liberalization. was the National Telecom Policy of 1994. Like other policies. which laid out broad policy guidelines rather than a series of action points. The next major policy document. VSNL launches Internet services TRAI formed Internet policy announced The National Telecom Policy of 1994 document.2. which was produced. wide coverage (a phone in every village). etc. The . at reasonable rates. Year 1851 1943 1985 1986 1991 1994 1994 September 1994 November 1994 December 1994 January 1995 August 1995 January 1996 November 1998 Event First telephones in India Nationalization of telephone companies DOT was created Creation of BHARTI and VSNL Telecom equipment liberalized Licenses for paging Telecom policy announced Guidelines for private sector participation in basic services Cellular licenses issued for metros Tenders for cellular licenses in 19 cities apart from 4 metros Tenders for 2nd operator in basic services apart from DOT on circle basis. it sought to achieve the impossible in finite time like improve quality of service and its availability.4 REGULATORY ISSUES The operations of this sector are determined as under the Indian Telegraph Act of 1885.

A new Policy for Internet Service Policy Providers (ISPs) was announced in 1998 allowing independent service providers to enter the sector ending the earlier monopoly of VSNL. Basic services were opened to private participation in 1994 by dividing the country into 21 telecom Circles and allowing one private operator per Circle to compete with DOT.targets in quantifiable terms were installation of 9. has not been met. The regulator TRAI was set up after delays and confusion and even after its creation. An independent telecom regulatory Authority of India was set up in 1997. DoT/ BHARTI have the option to become the third cellular operator in future. which was broadening the reach of telephony in India. DoT continued to fight with it in courts. and a PCO pop of 500. BOOT and BOLT was not used at all.5mn additional lines. Reorganization . Even liberalization policies were not implemented properly. telephone on demand by 1997. To facilitate licensing. Government did not achieve most of its stated targets. the economic costs are still borne by the end user. the nation was divided into 20 circles (akin to a state) for basic and 21 circles for cellular telephony. Value-added services (including cellular services) were thrown open to private sector participation in 1992. The basic premise on which competition has been introduced is that every circle will have one private operator apart from DoT/ BHARTI for basic and two operators for cellular. though noble failed to achieve its goals because of improper implementation. The basic theme. It was also affected by the resource crunch. and financing options like BOT. Mumbai falls in Maharashtra circle and Delhi in itself a circle. The telecom sector has witnessed some fundamental structural and institutional reforms in the past decade. The major policy direction it showed was to allow private sector entry in both basic and value added services. The intention. Telecom equipment manufacturing was completely deregulated in 1991. The Eighth Plan had also allowed private operators in value added services.

of DOT. separating policymaking function and service provision and corporatization of DOT's operational network are two major institutional reforms. which need to be implemented. .

Sources of secondary data Used to obtain information on. Bharti’s history. procedures etc. # Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given. Sample size of 50 persons was taken. current issues.Scope of the study # To conduct this research the target population was the mobile users. # Internet # Magazines # Newspapers # Journals # Bharti Circulars Store # Bharti News Letters # Vodafone Store # Vodafone Ministore . Who are using GSM technology. # The date during which questionnaires were filled. wherever required. # Targeted geographic area of Delhi/ NCR. the questionnaire was a combination of both open ended and closed ended questions. Interviews with the managers of GSM service providers were also conducted. # Some dealers were also interviewed to know their prospective. # To these 50 people a questionnaire was given. policies.

Data analysis And Interpretation .

99 .Subscriber numbers in (mn) held by Vodafone and Airtel June-05 Airtel 3.98 10.82 Source TRAI: Sep-06 4.50 6.19 Dec-07 5.19 Vodafone 1.45 Mar-09 14.07 12.62 4.26 Dec-08 10.24 Mar-08 6.54 7.

45 share Market Aug''09 22.49 share Vodafonecomm 17.49 16.01 8.03 2 5 2 0 1 5 1 0 5 0 B rti Airtel ha voda fone R nce infoc m elia om IdeaC ellula r Ma et sha Aug 5 rk re ''0 Ma et sha Aug 9 rk re ''0 .MARKET PLAYERS IN TELE COMMUNICATION Operator Bharti Airtel Vodafone Idea Cellular Market Aug''05 19.81 10.96 16.06 21.

FINDINGS AND ANALYSIS Age Group Graph As we can see from the above graph. The next age group are the . 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 people who are in the age group of 21-28 years are the ones who are the maximum users of mobile phones.

They are the young executives. . They are 15% of the whole. who require mobile for their official purposes. managers. small units which operate from their homes etc. these people are the ones who are the maximum users of mobile phones. And 10% of the whole is categories who are the professionals. They are 20% of the whole. And the next age group is the youngest generation who are 15-21 years old. The next segment is the students. So.people who are 28-35 years old. They are 15% of the total interviewed people. Occupation Graph OCCUPATION 10% 20% 15% 55% STUDENTS EXECUTIVES HOUSEHOLDS OTHERS As the above graph shows that 55% of the total people interviewed are working. They are 20% of the total.callers etc. They are school and college going students and carry mobile phones to flaunt. They are those who are at home or have small business units etc. The next category is the households. who are either housewife. Tele .

Service Provider Graph 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.

20% of the people seemed partially satisfied with the customer services and only 10% seem to be fully satisfied with Airtel’s customer services. 10% of the people were fully dissatisfied with the customer services of Airtel. which is a very small amount. . 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.Customer Service At Airtel Graph CUSTOMER SATISFACTION LEVEL 10% 20% 10% 60% FULLY DISSATISFIED PARTIALLY FULLY DISSATISFIED As the above graph clearly shows that customer services at Airtel seems poor. This could leave an impact on the mind of the consumer. He can even switch over his brand.

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

And the remaining 12% had an expense more than RS 1000. 64% Monthly Expense 24% 12% Rs 600 Rs 450 Rs 200 64% people spend this amount. 24% people spend RS 300 per month as their monthly mobile expense. .Monthly expense graph People on an average spend RS 500 per month as their mobile phone expense. they could the ones having sim connections or having cash cards and having a lot of business calls on their mobiles.

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

of people who use mobile phones is in the age group of 20 to 28. As Vodafone had done so much advertising and has it banners and hoarding spread all over Delhi. Who are the young executives and other office goers? They spend a maximum of RS 500 as their mobile expense. On the basis of analysis of the questionnaire I have found that the maximum no. There is more no. So. of prepared cards than post paid 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. . because of less promotions done by them as compared to Vodafone.Awareness of WLL Players Graph 80% 70% 60% 50% 40% 30% 20% 10% 0% V odafone Airtel Vodafone was the brand which was popular amongst the interviewed people. Possibly. this could be one the reasons of its popularity. Tata was hardly a known brand in this new field.

value added services and billing accuracy Airtel is at par or ahead of its competitor but in the case of customer care and availability they lag behind there competitors. People at this point of time are not interested to switch over from GSM to WLL . As.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. They only know more about Vodafone. Airtel has a hold in the market because it has the maximum no. of connections. As far as WLL is concerned people are aware about it but not many people are aware about Tata. so it must improve upon it customer services.

Customer Response towards Questionnaire .

Which Brand you. prefer most?      Airtel Vodafone Reliance TATA Idea .

How long you have been using this Product?     0-2 Years 2-5 Years 5-10 Years More than 10 years Consumers response shown in chart for usage .

. in this segment of survey 67 % of customer are aspire with Airtel and 33 % shown interest in other telecom products in urban areas.Are you using other product with Airtel?   Yes No 33% Y ES NO 67% Here are the customer responses about the use of the Airtel product and other product rather than Airtel.

Do you collect any information search before making purchase? 70% 60% 50% 40% 30% 20% 10% 0% YES NO 34% information search 66% .

hence can’t compete in low price segment. • No separate strategy for rural market. which affects its margins. . • Exports of products will also have huge chances in the coming years. • Premium priced products. • It has a strong brand name. • Distribution channel is not accurately categorized. Opportunities: • The company's financial performance can receive a major boost from its cost reduction efforts. • It has a clear and well-defined organization structure and limits of financial authority. Weakness: • Little efforts over the Advertising of products. superior quality products and an enviable distribution network. • Increase in advertisement spends affect the company’s margins. • There is a lot of scope of product and market diversification. • The company‘s bottom line falls victim to the bloated and highly paid workforce.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.

Fluctuations in the prices of raw materials would have significant impact on costs and margins of the company. 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. .• Airtel’s business has ample scope for gaining market share from the unorganized sector. Rural penetration too holds vast potential to bring about growth. inordinate hike in Broad Band Internet products would also increases company’s production and distribution cost. • Company’s major raw materials are influenced by government policies / controls as well as vagaries of the monsoons. Moreover.

PROMOTION *Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness. PRODUCT *Modification must be brought about in AIRTEL. 4. 2. *Free samples should be distributed among the prospects. contests and coupons must be given to retailers as well as customers and prospects. 3. Its demand should be increased.SUGGESTIONS Following are the few suggestions to AIRTEL for improving the market share and image of the products concerned. PLACE * The brands must be made available easily in. PCO & general stores. Sales promotion tools like gifts. PRICE * Price should be as competitive as other company maintains * Distribution of new connection should be in reach of customer pocket . 1. * Catalogues should be distributed among customers. in terms of quality.

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

• The company should emphasis more on the quality of Pharmaceuticals Products it was mostly claimed by the exporters that their receipts from company doesn’t matches with the sample’s quality shown before giving orders. as it has been recommended by exporters to make the delivery on time. • The company should keep an eye on the proper delivery of the goods to exporter on time. • The company should make its marketing strategy flexible enough in order to face competition. • 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. .RECOMMENDATIONS 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 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 company’s side. And if any change they require in present supplying condition? .

while finalizing and for analyzing quality problem in details the following Books.Vodafone.htm.com/2004/06/26/stories/2004062602180700. 2004. All the material detailed below provides effective help and a guiding layout while designing this text report. November 2003 Domain. Sharma Research Methodology – C. Missed Call.india.htm.com www. June 25. com/companies/companies_r/Vodafone_infocom/20031104_stop-roaming.domainb 4 .com www.BIBLIOGRAPHY In this project report.blonnet. Mumbai. Books : Principles of Marketing –Philip Kotler & Kevin keller edi.D. Kothari Websites: www.in http://www.R.com www. Magazines/Journals and Web Sites have been referred.google.Airtelworld. at http://www. 12 Market Research – D.


Magazines: Airtel (2 July to 10 July 2004) Airtel India page of HT paper (Thursday 1December 2004) Cowards India (26 December to 4 Jan. 2004) .

prefer most?     Airtel Vodafone Reliance TATA .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. Q. which Brand you. I am doing my project on “Comparative analysis of marketing strategy of Vodafone and Airtel”. Please give your precious time for filling these details.QUESTIONNAIRE Dear Sir/Madam.

 Idea Q.5 how would you rate the experience with Brand? Excellent    Good Average Below Average Airtel Vodafone Reliance .2 How long you have been using this Product?     0-2 Years 2-5 Years 5-10 Years More than 10 years Q.3 Are you using other product instead of Airtel?   Yes No Q.

Q.6 Do you collect any information search before making purchase?

 

Yes No

Q.7 If yes, which sources are used?

      

Magazines Dealers Sales Executives Operators reference Pamphlets and catalogue Reference from friends and relatives Any other


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

   

Good Network Discount scheme Service package Any other

Q.10 If you have to purchase a new connection or product in near future, which Brand will you go for and why?

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12 How would you rate Airtel performance as your expectation on 5 points scale (5 Highest?) 1    2 3 4 5 After Sale service Maintenance Product as per expectation Q.Q.13 What are you suggestions for improving the product quality.11 Are you aware of various promotional activities being run by Airtel. service availability and parts availability? . if then how? Are you satisfied with these promotional activities? Very Satisfie d     yes Satisfie d Somewhat Not Satisfied satisfied Customer Care By Ad Films By Camp 24 hrs call center services Q.

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