PROJECT REPORT ON

MARKET SHARE OF BHARTI AIRTEL
SUBMITTED IN PARTIAL FULFILMENT OF THE RQUIREMENT OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION IN

UTTARAKHAND TECHNICAL UNIVERSITY, DEHRADUN
SUBMITTED BY: SUBMITTED TO:

-----------------ROHIT PANT MBA 3ND SEM. MB06029

-----------------Ms. GARGI

im

D EH RA D U N

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CERTIFICATE
I have the pleasure in certifying that Mr. /Ms. ROHIT PANT is a bonafide student of MBA 3RD Semester of the Master’s Degree in Business Administration of Institute of Management Studies, Dehradun under Class ID No.MB06029. He has completed his/her Summer Training Project work entitled MARKET SHARE OF BHARTI AIRTEL LTD. under my guidance. I certify that this is his original effort and has not been copied from any other source. This project has also not been submitted in any other university for the purpose of award of any degree. This project fulfills the requirement of the curriculum prescribed by Uttarakhand Technical University, Dehradun for the said course.

Signature: ………………………………… Name of the Guide… Date…

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PAG E NO. Acknowledgement………………………………………………… 06
Executive Summary……………………………………………… Company Profile………………………………………………… Vision & Mission of Bharti Airtel……………………………….. Service offered by Bharti Airtel……………………………………. Segregation of telecom sector…………………………………… Market Players……………………………………………………. Fixed Line Operators……………………………………………… • Subscriber base • Fixed line market • Fixed line v/s mobile • present trends • Future Challenges Operators & their service area……………………………………...

TABLE OF CONTENTS

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Cellure mobile Services in India………………………………….. 22 Industry Growth Drivers…………………………………………..

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Evolution Of Wireless Communication in India………………….. • Road to 3G • Fight over 3G Spectrum In India

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Market Share of Mobile…………………………………………... 26 • prepaid v/s Postpaid GSM………………………………………………………………. • GSM Share • Market Development Since 2001 • ARPU • Expansion of GSM Operators CDMA…………………………………………………………….. • Market Share Of CDMA/WLL Internet……………………………………………………………. ITES……………………………………………………………….. • Classification • SWOT Analysis Of Indian ites Sector • Threats Faced By Industry Research Methodology……………………………………………. 65
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69 Recommendations…………………………………………………. 82 5 . 80 Bibliography……………………………………………………….• Elements Of Research • data collection • Sources Of data Collection Analysis & Findings………………………………………………. 79 Annexure………………………………………………………… …. 78 Conclusion…………………………………………………………..

I would like to thank all my colleagues and faculty members at I. Chitra for providing me help to prepare this project report and his valuable inspiration to carry out this project.S.Gitesh Taneja (Zonal manager Marketing) for his guidance during the course of my training. He has been most accommodating and supportive and has made my experience a pleasant one. 6 . His sound advice has been well taken by me and it is largely due to his patience that I was able to accomplish my target.M. I express my sincere gratitude to my company guide Mr. for their valuable suggestions and constant encouragement.ACKNOWLEDGEMENT I take this opportunity to express my profound and sincere gratitude to Uttarakhand Technical University for providing me with the opportunity to explore the corridors of the Corporate World and gather invaluable information & practical experience via such summer training project in Marketing. I take the privilege of offering deep sense of gratitude and indebtedness to Ms.

The Mobile Services segment stands at the cusp of a new opportunity. This project was a practical experience as I learned who the different players in the market are and what is their market share vis-à-vis airtel. Prepared a database of Airtel so that company could analyse data and take corrective measures so as to enhance the visibility share of airtel in the market. • • Prepared Questionnaire so as to find out the visibility index of airtel at different circle. posted on the intranet which has been introduced by the company to facilitate sharing of information among the marketing team with ease. It provides a lot of opportunity for the telecom companies to delve into this sector and find out the desired potential market. This sector is booming in India as the companies today are starting to operate globally thereby have an increasing IT and Telecom needs.EXECUTIVE SUMMARY The project undertaken by me at Airtel as part of Summer Training Program provided me an opportunity to understand the Mobile Services Segment and to gain an insight into the various strategies employed to cater this segment of the industry. I have learnt about the various aspects of Telecom sector in India and abroad. 7 . As a part of the project the following activities were done during the ten week summer training project at Airtel Mobile Services: • Worked with marketing department of Airtel at Dehradun for developing a Marketing Intelligence Repository. Working from the office in Dehradun from 20th June 2007 to 30th august 2007.

The survey was conducted in Dehradun Zone with main emphasis on learning about the market visibility share of airtel and with respect to other competitors and with a wider motive to educate the retailer about the various aspect of airtel and how can they increase their sales and income by following some simple Guidelines. Deobandh. Frost and Sullivan. depicting figures for the past. Ernest and Young etc. Medium retailers and distributor’s individually. Newspaper Articles etc. Trends that the market has shown and also the expected market and forecast results. 8 . Chutmalpur.• Analyzed Small and Medium retailers segment in Dehradun zone according to a research conducted by us. Deobandh. thereby it acted as a platform for me to gather first hand experience for exploring the corridors of the corporate world. Kotdwar. Rishikesh. • To map the potential for growth of telecom services in the Dehradun Segment the following activities were done o Collected data from secondary sources like magazines. Saharanpur. o Collected primary data from survey conducted by us in Dehradun circle which included Haridwar. and prepared a presentation on the Small. The project has been a great experience for me as an individual and provided me an opportunity to work in team on a practical project. Kotdwar. The survey was also conducted in outer areas of different places so as to gain full knowledge of the market. Moreover the added advantage was that the make a buffer between distributor and company and between retailer and company. Chutmalpur. The survey was done on exactly 3000 retailers to gain the first hand report on market. Rishikesh. o Collected data from previous researches conducted by Airtel and other agencies like IMRB. and Dehradun off course. Roorkee. The survey was done in Dehradun Zone which included areas like Haridwar. Saharanpur. The survey not only helped in gaining an insight into the market share of airtel but also helped in giving personal attention to retailer’s problem.

2007.972.676. 2002 March 30.703. the company has a submarine cable landing station at Chennai. 1995 June 04. 2005 9 . it is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-ME-WE-4) consortiums along with 15 otsher global telecom operators. and has commissioned the fourth generation cable system. The company also provides broadband & telephone services in 94 cities. The company is the largest GSM mobile service provider in the country. For international connectivity to the west. multimedia and various other broadband and data. which connects the submarine cable .Network i-2-i. For international connectivity to the east. The company complements its mobile. Internet. broadband & telephone services with national and international long distance services. VSATs. Few Key Milestones Date of Incorporation First private operator to offer fixed line telephony Became a public limited company in India First Telecom Company to have an all India mobile footprint (Presence in all 23 telecom circles in India) July 07. connecting Chennai and Singapore. consisting of 42.259 broadband & telephone customers.938 GSM mobile and 1. with mobile operations in all the 23-telecom circles of India. The company provides reliable end-to-end data and enterprise solutions to the top corporate customers by leveraging its nationwide fiber optic backbone.About the company Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 44. based on the number of customers. 1998 February 18. ISP and international bandwidth access through the gateways and landing station. SEA-ME-WE-4 supports telephone. last mile connectivity in mobile and broadband & telephone services. it has an all India footprint.197 customers as of June 30.

The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles. world leader in financial protection and wealth management. India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. fixed line. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA. All these services are provided under the Airtel brand. Airtel comes to you from Bharti Airtel Limited.mobile services.Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector. a group company. Bharti Airtel was recently ranked amongst the top 10 best performing companies in the world in the Business Week IT 100 list and emerged as ‘The Second most trusted Brand' in the most trusted Brand 2007 survey conducted by The Economic Times (ET) Brand Equity. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the B&T business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and 10 . Bharti Airtel is structured into three strategic business units . Ltd. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. Bharti has recently forayed into retail business as Bharti Retail Pvt. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) . broadband and enterprise services. Broadband & Telephone (B&T) services and Enterprise services. is one of India’s leading private sector providers of telecommunications services spanning mobile.Mobile services. The B&T business provides broadband & telephone services in 94 cities. broadband & telephone services (B&T) & enterprise services. Bharti Airtel Limited. agri business. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. under a MoU with Wal-Mart for the cash & carry business. Bharti Enterprises is one of India’s leading business groups with interests in telecom. Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. insurance and retail.

The company has two international landing stations in Chennai that connects two submarine cable systems . based on the number of customers. ENTERPRISE SERVICES (corporate): The group focuses on delivering telecommunications services as an integrated offering including mobile. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Airtel's high-speed optic fiber network currently spans over 40. the Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEAME-WE-4) consortiums along with 15 other global telecom operators. it has a submarine cable landing station at. BROADBAND & TELEPHONE SERVICES: The group offers high speed broadband internet with a best in class network. 11 . broadband & telephone. national and international long distance and data connectivity services to corporate.national & international long distance services to carriers. ENTERPRISE SERVISES(Carrier services): The Company compliments its mobile and broadband & telephone services with national and international long distance services.016 route kilometers of optic fiber on its national long distance network. All these services are provided under the Airtel brand.i2i to Singapore and SEA-ME-WE-4 to Europe MOBILE SERVICES: Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country. For international connectivity to east. For international connectivity to the west.000 kms covering all the major cities in the country. small and medium scale enterprises. It has over 35.

Our Vision By 2010 Airtel will be the most admired brand in India: • Loved by more customers • Targeted by top talent • Benchmarked by more business.Vision of Bharti Airtel Ltd. MISSION “We will meet global standards for telecom services that delight customer through”     Customer service focus Empowered employees Innovative services Cost efficiency 12 .

Services Offered by Bharti airtel ltd.                           Telephone Services NSD/ISD Services Computerized Trunk Services Pay Phones National & International Leased Lines Circuits Telex Telegraph Services (Manual & Automatic) X-25 based Packet Switched Data Network (INET) Gateway Packet Switched Data Services (GPSS) Gateway Electronic Data Interchange Service (GEDIS) Gateway E-Mail and Store & Forward FAX Service (GEMS-400) Concert Packet Service (CPS) Satellite-based Remote Area Business Message Network Electronic Mail Voice Mail Audio-Text Radio Paging Cellular Mobile Telephone Public Mobile Radio Trunked Service Video-Tex Video Conferencing V-SAT Internet ISDN INMARSAT Mobile Service INMARSAT Data Service 13 .

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92 mn 10.76 mn 8.52% in FY07 compared to 3.The telecom sector is basically divided into three categories which are: a) Basic fixed line b) Cellular services c) Internet A) Basic Fixed Line: Until 1996 India was a pure fixed line market TELECOM STATISTICS DEC 05 92.23 mn Total subscribers Tele.80% 55.density Fixed line Source: TRAI June2007 15 . Due to this reason telecom density in the country has risen to 20.64% in FY01.80% 45.01 mn. 20.52% 60.SEGREGATION OF TELECOM SECTOR The telecom sector has been one of the fastest growing sectors in the Indian economy in the last 2 years.15 mn Dec 06 94.15 mn June07 225. This has been witnessed due to string competition that has brought down tariffs as well as simplification of policy environment that has promoted healthy competition among various players.

16 . Then comes Private Sector’s Company BHARTI AIRTEL which holds a major part of market. HUTCH. RELIANCE & HUTCH are all private players. BSNL MTNL Bharti (Touch tel) Tata telecom Shyam Telecom HFCL Reliance Hutch Idea SOURCE:COAI BSNL & MTNL are 2 state owned companies & rests 6 BHARTI AIRTEL. RELIANCE & MTNL comes one after another. Where BSNL holds the major share of the market. until 1996. TATATELE SERVICES. there are now 6 private players and 2 states owned. but after sector was opened for the private players.The players The fixed line segment was a monopoly sector controlled by govt. HFCL. SHYAM TELECOM. Both these companies have a big subscriber base.

862.Fixed line operator subscriber base • BSNL with a subscriber base of 34. 17 . holding MTNL which has a subscriber base of 4.Then Bharti airtel is the private sectors biggest telecommunication company with a subscriber base of 609.047 subscribers.475.000 is on the first position & then comes another govt.000 .

Fixed line market share  BSNL the public sector giant totally funded by government have majority market share of 86 % in fixed line telephony. the competition is becoming fierce. 18 . With the entry of more and more private players in the fixed line telephony.  It operates in all over India except Delhi and Mumbai where MTNL operates. as a result operators are now focusing upon offering various services to the consumers along with their fixed line connections.

M. Haryana.P.Operators & Their Service Area OPERATORS BSNL MTNL Reliance Bharti Shyam Tata HFCL Infotel SERVICE AREAS All over India Delhi ad Mumbai Gujarat. Rajasthan Delhi. UP (E) Delhi. Gujarat. Punjab. Tamil Nadu. Maharashtra. AP Only in Punjab 19 . Delhi. WB.

Various facilities like sms. This is because of Low tariff structures offered by mobile operators which are attracting consumers to switch over to mobile phone subscriptions.Fixed VS Mobile The difference between the numbers of fixed line and mobile subscribers is fast narrowing. 20 . In Delhi. Punjab and Haryana mobile users have crossed over fixed line users already. mms. This trend has a two way side effect on fixed line telephony  fixed line operators are finding it hard to reduce consumer churn  Their ARPU has taken a big leap downwards Reduced mobile tariffs could be explained as the most prominent reason for increased mobile subscriber base. and games etc acts as a major variant to attract customers.

Future challenges  To provide more data services on fixed line  To reduce customers turn towards mobile service. 21 .  To add more number of services to give competition to the Cellure mobile services.  To provide more facilities to the customers.Present Trends  Intense consumer shift towards mobile services  Low call tariffs  SMS over fixed line is available  Due to the major shift of customers from fixed to mobile services there is a fluctuating ARPU  Low subscriber additions  Private operators like Bharti is increasing its market share constantly.  To add more number of customers.

In fact. • The gap of call costs between fixed and wireless services has narrowed as a result Customers have become more convinced to subscribe to wireless connections • Nationwide roaming facilities on GSP has also attracted the customers • SMS facility • Internet • Reduced cost of handsets (affordability factor) • Customs duties have been reduced from 10% to 5% • In remote areas where providing fixed line connections was difficult.B) Cellular mobile services in India Cellular mobile services. the segment achieved a landmark in FY03 when. are amongst the fastest growing segment. wireless Did the magic • CDMA fixed wireless gave customers 3 in one advantage – Mobility. internet And messaging. After a slow start.The cellular telephony segment has emerged as the fastest growing segment in the Indian telecom industry. • Fall in tariffs has fueled the wireless segment since 2002. this sector grew at compound annual growth rate of more than 70 per cent in FY2000 and FY2001 and is expected to reach a size of nearly 90m by FY08. Industry growth drivers As India has a vast geographic expanse therefore this act as a catalyst to boost mobility. As there is a major scope of penetration in many parts of India especially rural India. for the first time. more cellular subscribers were added than fixed line subscribers. 22 . started in 1995.

In the year 2002-03 the GPRS & MMS facilities were started which gave a new competition in the telecom sector.Evolution of Wireless communications in India From 1996 3G licenses were issued for GSM mobiles. After then in 1990-2000 SMS facility was started .In the year 2004 onwards 23 . Then there was a great change take place in the form of CDMA mobiles which came into existence in the year 2003.

Hutch. Airtel and Idea. BPL was the first operator to Launch GPRS in India. Hutch and Idea. are providing EDGE Networks 24 . followed by Airtel.Road to 3G in India GPRS is widely offered by major operators.

Reliance and Tata have requested the government to allocate them spectrum in the 1900 MHz band. which is the uplink mode for 1920-1980 MHz paired with 2110 to 2170 MHz (the core band identified by the ITU for 3G services). They say equipment  for 1800 MHz is either not freely available or is very expensive and with the exception of South Korea most countries are deploying next generation CDMA services in 1900 MHz. have also asked the government to reserve the radio frequency specifically for offering 3G services and not to allocate it to CDMA operators. which is allocated to GSM services. In a submission made to the Telecom Regulatory Authority of India by COAI. Idea.Fight over 3G spectrums in India  India's CDMA mobile operators' application for a new band of airwaves for 3G services has angered the GSM camp in the country."  Interfere happens when the uplink for the 1900 band clash with the downlink in the 1800 band. 25 . through the Cellular Operators' Association of India (COAI). "The allocation of the PCS 1900 band would not only result in a major interference to the services offered by operators using GSM technology but also block the progress of 30 million subscribers to 3G. While the downlink for the 1900 band interferes with the IMT 2000.  GSM operators need the 1900 band when they migrate to 3G UMTS networks. Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam are opposing the proposal. In addition they said they are willing to share the band with GSM operators. saying it would Interfere with their current mobile phone service and also block their migration to 3G services. The companies.  CDMA operators are allowed to offer services using spectrum in the 1800 MHz band but is seeking for the 1900 band instead.  GSM operators Bharti. Hutch.

3G equipment for GSM is available only for the 1900 band and nowhere else. After then VODAPHONE HUTCH comes with a increased percentage of …. %.then comes government owned BSNL 18.. Market share of mobile When we talk about the market share of mobile companies then BHARTI AIRTEL is the biggest company with a market share of 20.30%in 2005 July & in July 2007 this percentage is also raised to 20. More importantly.% in July 2007. The GSM camp argues that a number of firms make equipment and handsets for the 1800 band.62% in 2005 July but now the percentage has been raise up to 31%. 26 .

Postpaid Subscribers 27 .Prepaid vs.

Chennai and Calcutta. 476 million cellular subscribers were added.  Globally the GSM subscribers continue to grow at a rapid pace.GSM (Global System for Mobile Communication)  GSM was first introduced in 1995 and is one of the fastest growing markets in the world.  There are 35 networks on 900 MHz.  GSM added over 100 million new subscribers in only three months. The world beating performance pushed the number of GSM subscribers to over 1. 28 .  The digital mobile communication standard GSM (Global System for Mobile Communication) is deployed in India.79 billion GSM subscribers constituting nearly 75% of the total cellular market. out of which GSM additions were 424 million constituting nearly 90% of the total additions. with up to four GSM licenses being awarded in each.  In FY-06.  The Indian telecommunication market is divided into 24 circles. There are also four metropolitan (metro) districts: Mumbai. 11 on 1800 MHz Technology. New Delhi.56 billion by end September 2005. At the end of March'06 there were 1. thus averaging over 1 million net additions every day throughout the whole of 2005. using the 900 MHz and 1800 MHz frequency bands.

GSM operators : 29 .

com GSM Market share 30 .s Source: India infoline.

12mn customers in the quarter. Bharti came up with new schemes and also ventured into 3 new circles during the quarter. adding 1.Bharti Tele-Ventures led the way. CIRCLEWISE BREAK UP OF SUBSCRIBERS City/Circle Operators Jan'2006 Feb'2006 Mar'2006 Metros Delhi Bharti Tele-Ventures Hutchison Essar MTNL IDEA 1895680 1742136 742647 832183 2014989 1777191 790476 848852 2074987 1879226 936146 866966 31 . contributing close to 30% to the overall additions for the quarter.

Mumbai BPL Mobile Hutchison Max MTNL Bharti Tele-Ventures 1334272 1838818 888027 1135954 1337104 1898911 929334 1222193 1337589 2003469 1005009 1232502 Chennai Aircel Cellular Ltd Bharti Tele-Ventures Hutchison Essar BSNL 677815 610968 375328 509118 685409 632540 414343 513415 712291 669065 436405 578191 Kolkata Bharti Tele-Ventures Hutchison Telecom BSNL Reliable Internet 604661 869113 403538 19191 14479449 609471 937127 412023 30255 15053633 643291 1004531 430646 49551 15859874 All Metros Total A' Circle Maharashtra BPL Cellular IDEA Bharti Tele-Ventures BSNL 683651 1631574 1211226 1056053 708799 1693966 1235589 1056053 733754 1782041 1313923 1134249 Gujarat Fascel IDEA Bharti Tele-Ventures BSNL 2012797 914163 791524 827750 2174113 965773 830306 827750 2257450 1025265 859423 899205 32 .

P. Aircel Digilink Bharti Cellular BSNL Ideal Mobile Comm. Bharti Tele Ventures BSNL Hutchison Essar Aircel Digilink BSNL Bharti Tele-Ventures 768101 431102 529444 1425438 1351215 1542103 383020 605837 273456 344998 384948 482490 813111 519132 892797 501369 1209445 1581512 543207 783096 443120 571328 1518117 1421560 1637866 371299 634342 291179 372456 396666 481805 858609 525770 914086 561391 1289843 1588530 553730 796354 463700 610772 1604180 1501341 1678683 371756 658923 311602 373801 423387 485783 920697 549369 943776 613413 1392498 1609488 639234 Punjab U. BPL Cellular Aircel Limited BSNL Bharti Tele-Ventures 467216 1602380 1339658 698659 483406 1637342 1405839 814558 500242 1684267 1465000 902352 A' Circle Total 21876761 22977143 24332549 B' Circle Kerala Idea Mobile Comm.P.(E) 33 . IDEA Bharti Tele-Ventures Hutchison Essar BSNL 850858 1534879 756395 1053728 2001370 366263 964612 1112005 882131 1732271 800145 1118355 2003825 398711 1013723 1194488 934541 1808121 848296 1246499 2132204 432067 1088763 1284887 Karnataka Bharti Tele-Ventures Spice Comm Hutchison Essar BSNL T. Bharti Tele-Ventures BSNL Hutchison Essar Haryana Idea Mobile Comm.(W) U.N. BPL Cellular Bharti Cellular BSNL Spice Comm.A.P.

P.Escorts Telecomm. & A&N B' Circle 34 . 649095 500159 403769 387966 227410 583060 291642 417158 7522 20449705 W.B. IDEA Reliance Telecom Bharti Tele-Ventures BSNL Reliance Telecom BSNL Bharti Tele-Ventures Hutchison Telecom Dishnet Wireless Total 527136 918233 953830 148 559914 1020315 1018085 121 681128 513292 436231 389821 239388 655055 299662 462205 14390 21504548 246 601292 1023163 1099415 162 728520 529146 503297 471839 260760 716634 309234 505245 27709 22725419 M. Rajasthan Aircel Digilink Bharti Hexacoms BSNL Escorts Telecomm.

E. Reliance Telecom Bharti Tele-Ventures BSNL Dishnet Wireless Jammu & Kashmir BSNL Bharti Tele-Ventures DIshnet Wireless 502281 782889 665241 179906 476399 364527 19469 185053 308346 129156 34992 53818 22999 176853 36427 426384 240893 2445 5213229 332955 62030 210166 343460 62578 212796 21 503642 869675 743333 189821 524522 402053 21700 192056 336824 144466 47667 69091 28360 191074 49364 461294 251092 8337 5653226 357382 63027 220134 39 510396 927557 907913 203759 560644 457734 35537 205672 377038 180405 68808 81717 41553 227365 57388 504483 261214 25714 6275479 C' Circle Total All India Total 62019144 65188550 69193321 35 . Bharti Tele-Ventures Reliance Telecom BSNL Escorts Telecomm.C' Circle H. Bihar Reliance Telecom BSNL Bharti Tele-Ventures Orissa Reliance Telecom BSNL Bharti Tele-Ventures Dishnet Wireless Assam Reliance Telecom BSNL Bharti Tele-Ventures Dishnet Wireless N.P.

This was mainly due to lowered call tariffs and full scale implementation of SMS services all over India. The above phenomenon in India is taking shape because of the presence of huge middle class population. and mobility was definitely a crucial element. Lowered call tariffs 2. Subscriber growth continued from 2002-03. December 2002. Free incoming calls Consumers who were once reluctant to subscribe to mobile subscriptions founded feasible and convenient to avail as now there was hardly any difference between the monthly bills compared to fixed line. where India touched the 10 million mark could be defined as a milestone for Indian wireless industry. Two main elements for this phenomenal growth are 1. Unlike a car or a television set (where one is enough in the family) with the lowered call tariffs it became possible even for family members to own a mobile phone each. 36 .Wireless Subscribers Growth – GSM The subscriber growth saw a phenomenal increase from 2002 onwards. On an estimate there are some 300 to 350 million people belonging to this group in India.

The above scenario triggered two situations: •Smaller operators sold their licenses to big players •The bigger players seeing an opportunity to expand. as a result many failed and vanished from the business because the industry demanded huge capital investments and some of them were of course unable to do so.Market Developments since 2001 India is a vast country with over 3000 Kms of distance from north to south and similarly from east to west. Covering this huge scope of land became a challenging task for the operators. acquired smaller operators 37 .

they are spending less on talk time. The ARPUs of the private GSM operators dropped 21% yoy from Rs 479 per subscriber in Q3 FY04 to Rs 396 per subscriber in Q3 FY05. leading to revenue increase for the operators. Thus. Average revenue per user is an important parameter in determining the profitability of operators. 38 . However. Declining due to a sharp fall in tariffs. the affordability of services for subscribers was further enhanced during the year. the subscriber base expanded. Average Revenues per User (ARPU) declines yoy. which in turn fuelled subscriber growth.ARPU The Average Revenue per User (ARPU) of GSM operators is steadily declining.51% yoy. This trend of declining ARPUs and increasing revenues is purely because of the rising subscriber base. ARPU also fell by 1. With more customers going mobile.

China also has the same average revenue per minute of $0. In such a scenario. India ranks the lowest with $0.04. operators have a big challenge not only to introduce more and more attractive content but also to see that they add new subscribers on the basis of content not voice. According to information available with the Telecom Regulatory Authority of India (Trai). There are 18 languages and 844 dialects and offering streamlined data services in all of these languages are by no means a simple task. Country India China US Canada Korea Columbia ARPU $11 $10 $57 $39 $35 $11 MOU 309 261 619 344 316 -- In terms of revenue per minute. On an estimate 80% of operator revenues are voice based and the remaining 20% Constitute of all the data traffic. (Nov 06).04. The average revenue per user (ARPU) of mobile telephone companies is on the decline and India has one of the lowest ARPU in the world. operator ARPU was almost twice as that of today. To add to the complexity is the language scenario in India.During the days when incoming was not free. This shows that India still is mainly a voice market. This however will be a big challenging task for Indian operators as promoting data services where roughly 45% of the population is still completely illiterate. 39 . Despite of offering various data services over their networks. operators have been unable to uplift the ARPU.

Airtel and Hutch have been very active in these mergers and acquisition activity.Expansion Strategy of GSM Operators Operators are constantly seeking to consolidate their standing in the market. 40 .Similarly. Indian telecom regulations limit the number of operators in each circle to four but it does not limit operators acquiring each other. Airtel acquired Hexacoms licenses for states of Rajasthan and few northeastern states. Hutchison Telecom (Hutch) recently acquired Aircel which operated in state of Tamil Nadu .

BSNL and MTNL offered CDMA before Reliance but they were unable to tap subscribers. However. There was a big debate in India just before the launch of CDMA services that will it succeed or not? Recent trends reveal that CDMA is here to stay. Reliance Infocomm was the first private operator to start with the CDMA services in India. option of connecting to internet using a simple data cable proved as a catalyst in promoting CDMA services in India. Reliance’s strategic alliance with LG and Samsung to offer their handsets along with their subscriptions proved to be a catalyst in the process. it has revived its strategy and has been able to gain some market share. 41 . but that doesn't mean that it is going to overpower GSM.    The call tariffs over CDMA were initially lower as compared to GSM but today CDMA and GSM call tariffs are moreover same.  Tata Indicom which was the second private operator to offer CDMA services initially failed to attract consumers but since early 2004.CDMA  CDMA was started in March 2003.  Nationwide roaming helped to boost subscribe base.

Net Additions Of the total subscribers added in Q3 FY05. 2006. Reliance contributed over 85%. ‘ Operators WLL/CDMA 42 . Reliance added over 1mn customers for the quarter ended December 31.

a significant minority of voice customers will take a second 2G subscription for data – for instance. Customer interest will initially generally be low due to poor handset performance. mobile operators have faced    43 . there will be some 2 billion cellular mobile subscriptions worldwide.Market Share  By year-end 2005. Additionally. but overall demand will continue to grow strongly. Voice will continue to be the primary source of cellular mobile revenues. there will be nearly 2 billion subscriptions worldwide. a mobile e-mail device – creating a strong likelihood of mobile penetration surpassing 100 percent in some markets. However. cementing the mobile phone’s position as the most rapidly-growing and widely-adopted technology of all time. Dozens of 3G networks will go live in 2005. 2G networks will increasingly become cash cows capable of generating EBITDA margins of 45 percent or more. disappointing network quality and a lack of compelling benefits. Price competition will drive voice margins down. As a result. This will have a real and immediate impact on average revenue per user. Cellular mobile will remain the dominant mobile and wireless technology in 2005. By the end of the year. typically accounting for more than 80 percent of total revenue. making 2005 a very positive year for 2G.

operators and equipment vendors will likely be delivering a 3G experience that is comparable to 2G. taking up the slack as SMS growth declines. first the phone line is blocked and then one is subjected to pay the regular call charges.  Using internet over phone connection with a modem has two disadvantages.8 K-56 K modems at home. messaging will continue to be the primary source of non-voice revenue growth. networks and services will in many cases be noticeably superior to their 2G forebears. Always on connectivity will help users (both home and corporate users) to keep their phone lines free and avoid call charges. Indeed. Chat. the most compelling and lucrative mobile content will likely continue to be ring tones (already a $2 billion industry). This syndrome still exists today with the home users but they still prefer using internet through 28. wallpaper. many operators will continue spreading their bets – adopting new technologies in rapid succession – to the detriment of their customers and shareholders. Initially and even today most of the home users used to access internet over 28. This situation means that there is a huge potential for broadband service providers to attract customers for their services but only at prices which are affordable.  Meanwhile. 44 . with numerous companies fighting to expand their share of a declining market. WiFi hotspots will be a prime example. c) Internet  Internet made its entry in India in the year 1995 when VSNL (Videsh Sanchar Nigam Limited) started with dial-up connections.  On both platforms.8 K and 56 K modems. before  The year is over. And by 2006. 3G handsets.this same situation several times before – whenever their network technologies have changed – and skepticism will turn to optimism by year-end. Beyond 2G and 3G. The first five years of internet in India could be defined as an incubatory stage where speeds were limited to maximum of 64 Kbps ISDN. and other simple forms of personalization and self-expression. instant messaging and other emerging services will grow substantially.

and Australia .  China. To put India on the growth track.  In India. Other countries in the Asia-Pacific region had much better broadband penetration.at least doubled in growth.000 people and so is the quality of broadband available here. Traditional dial-up access is being augmented and in some cases replaced by new. growing by another 100 percent.  The estimated broadband connections in India grew by a whopping 236 percent in 2004 over 2003. Thailand was the fastest growing market with a growth of more than 1. with the entire region seeing the number of users leap 50 Percent during the year. It is not just a matter of the penetration of the services. Provider: techtree news staff 45 . Despite the growth seen in 2006 the broadband penetration divide between Asian countries is more extreme than anywhere else in the world and getting more so. the broadband push has only just begun with DSL. despite having a huge broadband user base and the biggest broadband market in the region with above 21 million connections.2 crores broadband users across the region by December 2006 compared to 4. cable and wireless options. However.1 crores in 2005. Broadband is a collective term for a group of technologies that enable high-speed Internet access. But the penetration of broadband is abysmal . while. the overall penetration rate there too remained low. continued to convert dialup customers to broadband. the others .4 users to every 10. China. more robust access media.000 percent. That is up to 40-times faster than the conventional dial-up medium. 20 million broadband users and 40 million Internet subscribers are being targeted by 2010.Malaysia. at speeds of up to two megabits per second (Mbps). There were 6. but the access speeds on offer vary widely too.

Home users in metropolitan cities have chosen between regular 56 K modem connections Or internet over cable TV. Today these cyber cafes are opting for either smart wireless or DSL broadband. Cyber cafes initially chose 64 Kbps ISDN connection to run multiple PCs.Industry Developments There is a big way to go for the Indian internet industry still. Cyber café business is not doing well at least in metropolitan cities because the home users which used to visit their cafes earlier to access internet now have option to access internet either over cable TV connection or through smart wireless or subscribe to a 64 Kbps always on connection (not over phone line) 46 . Although it has been almost 10 years since internet came to India there has been less progress on the bandwidth front.

Access modes

Out of the entire dial-up segment almost 80% are home users. The rest 20% is shared by small businesses. In a small internet population of 6 million subscriber’s majority of the market share is still with the dial-up connections. Today 55% internet users use net through DIAL UP connections. 17% through LEASED LINES, 10% through ISDN, other 10% through DSL & rest 8% through other ways.

47

Major ISPs in India

Applogic Broadband BSNL Dishnet DSL

Bharti BT Capital Hathway Cable

BSES Telecom Cyberwave Internet In2Cable

India Online

Ipeaks

Landsat

MTNL Satyam Infoway Tata Indicom Zeenext

Primus Sigma Online Touchtel

Reliance Spectranet Wipro Net

48

Market Share of Leading ISPs

In the ISP market BSNL the public sector giant totally funded by government is leading the market with a market share of 25% which is followed by another government holding MTNL with a market share of 17%. Then comes private sectors company SIFY LTD with its market share of 17%.

49

Crux: Number of users is continuously increasing

50

Financial accounting services. for example. It is also important to note that although the term “IT Enabled Services” leads with the phrase “IT”. British Airways and GE Capital setup captive units for customer support and transaction processing services. medical transcription. It is that sector of Information Technology (IT) Industry which aims at providing various services. The industry is often referred to as a “knowledge-based” industry. although accounting back offices utilize IT tools such as high-end accounting databases. The Indian IT-enabled outsourcing market has its roots in the mid-1990s when companies such as American Express. the “raw materials” in the ITES industry are data. eCRM. claims processing. Independent BPO vendors began emerging in the late 1990s. 51 . The following are not included in the definition of ITES. the products and services provided are less tangible. involve business processes and services that extensively utilize components of information communication technology (*ICT) such as software. ITES sector includes services ranging from call centers. despite these enterprises use of ICT: any manufacturing. SCM to back-office operations such as accounting. or “ITES”. banks). as such. and virtual businesses that exist only on the Internet.ITES…. are typical administrative functions that fall within ITES but are not within the technology sector (like software). In other words Information Technology-Enabled Services. many business processes within this sector would not be classified as technology businesses.What actually it means? ITES means IT-enabled services. local branches of global businesses (e. hardware and the Internet. and in the recent Months.g. IT services companies have also made a foray into the IT-enabled outsourcing realm. and data mining. data processing. As opposed to the manufacturing industry where products are physically visible. information and knowledge. through the use of IT.

photocopiers. According to Nasscom. * “ICT”.Over the past decade. e-CRM and SCM. storing and communicating information. Information & Communications Technology: Electronic means of capturing. to back-office operations such as accounting. insurance claims processing. the following areas come under the ambit of IT-Enabled Services: • • Customer Interaction Services (including call centers). and the Internet (e-mail and Web). fax. Modern ICT generally includes telephones. and data mining. computer hardware and software. medical transcription. payroll processing. India has emerged as a preferred location for organizations planning to outsource a variety of services ranging from call centers and other customer interaction services. BPO/Back office operations/revenue accounting/data entry/data conversion (including finance and accounting)/HR services Medical Transcription/translation services Legal databases Digital Content development Engineering and Design services Support Centers Payroll/HR services Website services Data Digitization/GIS and Online education Network consultancy and management Other services including data search and market research • • • • • • • • • • 52 . data processing.

 Service factory is back-end off-shore processing (indirectly to customers)  Process Export specializes in processing payroll. general accounting etc. the services provided by the other three are growing rapidly.Ireland. regional centers)and outsource the non-core processes to third party vendors. global hubs.g. high skill offshore locations (e. (indirectly to customers)  Service line aggregates specialize in a group of related processes like payroll and benefits (directly to customers)  Bundled services providers offers combined IT outsourcing and BPO.philippiness)using multiple models(e. India. Mckinsey has done the classification on four broad parameters.g. (directly to customers) Globally there are four types of IT-enabled services vendors who differ by origin and focus—  In-house/captive centers  Spin-offs  Focused BPO providers  Broad based services providers While in-house providers account for the bulk of the activity at present.  In-house providers -Out locate business processes to low cost.Classification of ITES IT enabled services can be classified mainly on the basis of level of complexities in service offered and required expertise. 53 . Two broad categories are clearly visible in the current vendor landscape.

education and training. document management. inbound call centers. tax consulting and compliance. hiring administration. risk management. recruiting and staffing. Third party providers -Offers distinct value proposition to customers in terms of services offered and are rapidly growing in scale. transaction processing Administration :This covers tax processing. customer analytics. Indian ITES companies are also undertaking projects in the following areas and segmented along similar lines: • Customer care :This includes database marketing. Web sales and marketing. network consultancy and management and biotech research • • 54 . accounting transactions. transcription and translation Content development :This area includes engineering. records management are covered here • • Payment services :These include credit/debit card services. Human resources :Areas such as administration. financial reporting and financial analysis. design. sales and marketing administration • Finance: This covers billing services. animation. cheque processing. telesales/telemarketing. claims processing. payroll services. asset management.

Shell and Computer Sciences Corporation have BPO units in Mexico. Malaysia is facing scarcity of skilled workforce resulting in rising labour cost. which has resulted in high cost bandwidth. Philippines and Malaysia are some of the other attractive locations for the ITES industry. India should not focus on cost advantage alone. though they are high compared to India. real estate prices and salaries are low compared to the US. Amoco. Federal Express. Canada. India with its vast pool of cheap graduates and proficiency in English speaking is well positioned as an ITES destination. Some of the companies that have BPO operation in Philippines are AOL-Time Warner. However. Some of the Companies that have chosen China for their BPO operations are Microsoft and HSBC. Mexico. Federal Express. BP. Brazil. Mexico and Brazil also have the advantage of proximity to the US along with low labour costs. Citibank and Procter & Gamble. 55 . With the liberalization of telecom sector. Canada is ideal for complex businesses that require proximity to the US. Brazil has invested heavily in IT and telecom. AOL-Time Warner. Moreover.India's comparative position Ireland. these graduates have several other job options available to them resulting in shrinkage of the labour pool available to the ITES industry. the country has also scored to some extent on the infrastructure front. which in turn has lowered the country's labour cost advantage. insufficient proficiency in English language is a major hurdle for the country. Siemens and Compaq have chosen Canada for their BPO operations. Mexico's additional strength is its Spanish language skills. China and Philippines can emerge as serious competitors to India in the long-run as both have large number of graduates for the ITES industry. However. The country lags behind in infrastructure like access to networks and fiber optic backbones. AIG. superior management practices and project management. The country is actively encouraging English speaking in its schools and colleges to counter this problem. Canada has low economic and political risks. The Indian industry should focus on better Productivity. Philippines would need to improve on its infrastructure base to build a sizeable ITES industry. However. Caltex. China. This has led to import of significant talent into Ireland. China's greatest strength is low labour cost. Amex. Ireland has the advantage of good infrastructure and a vast pool of graduates. Barnes & Nobel Online. However. Moreover. Among the Asian countries.

According to Nasscom. 56 . b) Cheaper workforce than their Western counterparts. The wage difference is as high as 70-80 percent when compared to their Western counterparts. Of late workers have shown a tendency not to pursue ITES as a full-time career. Weaknesses: a) Recent months have seen a rise in the level of attrition rates among ITES workers who are quitting their jobs to pursue higher studies. d) Dedicated workforce aiming at making a long-term career in the field. e) Round-the-clock advantage for Western companies due to the huge time difference. b) The cost of telecom and network infrastructure is much higher in India than in the US. English-speaking workforce. c) Lower attrition rates than in the West. f) Lower response time with efficient and effective service.SWOT analysis on Indian ITES sector Strengths: a) Highly skilled.

Missouri and Wisconsin. Threats: a) The anti-outsourcing legislation in the US state of New Jersey. b) Workers in British Telecom have protested against outsourcing of work to Indian BPO companies. c) Other ITES destinations such as China. Three more states in the United States are planning legislation against outsourcing Connecticut. b) Indian ITES companies should work closely with Western governments and assuage their concerns and issues.Opportunities: a) To work closely with associations like Nasscom to portray India as the most favored ITES destination in the world. c) India can be branded as a quality ITES destination rather than a low-cost destination. Philippines and South Africa could have an edge on the cost factor Source: Express Computer 57 .

C-DAC. E & Y. call centres. HP. software. ExL TCS. software boi-informatics. product design Software. Microsoft 36.500 SAS.300 7. Morgan Stanley. Wipro Chip design. IBM. MphasiS. i-flex. Wipro. software Prominent firms GE. Convergys. chip design.500 62. SAP.100 Chartered. software Call centres. TI. Infosys. tax processing Hyderabad Chennai Software. Spectramind. IT consulting. STMicroelectronics. American Express. animation Kolkata Pune Consulting. embedded software Cognizant. Motorola.300 Focus Call centres. Zensar 7. TCS MsourcE. Oracle. Persistent Systems. Dell. Polaris. Tisco. Satyam. Pentamedia PwC. transaction processing. Yaho.Important ITeS cities in India Key Indian cities City Delhi (includes Gurgaon and Noida) Mumbai Bangalore Financial research. 58 . ITC Infotech. Daksh. back office. Standard 51. World Bank. back office.050 Employees 73. chip design. Intel. EDS. IBM. Accenture HSBC. Citigroup 109. AOL.000 transaction processing.

Top ITES companies Rank 1. Ltd. 10. 9. GTL Ltd. 7. Ltd. 4. 8. Spectramind Datamatics Technologies Ltd. Brigade Corporation Epicenter Technologies Pvt Ltd Firstring 24/7 Customer Source: Nasscom RANKING OF INDIAN ITES CITIES CITY RANK HYDERABAD 1 KOCHI 2 CHENNAI 3 KOLKATA 4 AHMEDABAD 5 BANGALORE 6 MUMBAI 7 NCR 8 PUNE 9 "Super Nine" Indian ITES Destinations 59 . 3. 5. Tracmail India Pvt. Daksh eServices Pvt. Company EXL Services. 6. Ltd. 2.com (I) Pvt.

power infrastructure. Bangalore. Pune. Pune and NCR (Delhi. employees of multinationals who quit their jobs to set up their own ITES ventures) again in and around Delhi (NCR) and Mumbai (including Navi Mumbai) The third phase of growth has been more geographically dispersed . the ITES industry in India is experiencing the third wave of growth. city perception and entrepreneurial history. American Express. Hyderabad. According to NASSCOM. policy initiatives. Mumbai (including Navi Mumbai). and Swiss Air who set up operations in leading metros of the country such as Delhi and Mumbai • • In the second phase. international bandwidth and urban transportation) and lower manpower costs due to lower cost of living and lack of alternative employment opportunities in these cities. Noida and Gurgaon). Chennai. the growth of the industry attracted numerous entrepreneurs (in many cases. telecom infrastructure. A large number of ITES companies being based in Mumbai. Kolkata.with new locations emerging such as Hyderabad. About 90% of all ITES companies in India are concentrated in nine major cities while others have not been able to attract more than two companies each. The cities are assessed on factors such as manpower availability. Bangalore. Kochi. real estate. NCR and Bangalore. both in terms of geographical areas of operation and services offered In the first phase. and more recently. Cities such as Hyderabad and Kochi are emerging as attractive ITES destinations primarily due to rapid improvements in infrastructure (power. Chennai. Kochi. the industry was dominated by captive centers of large multinationals such as GE. these cities are facing increasing competition from other cities.The top nine cities include Ahmedabad. 60 .

Chennai. loses out on competitiveness as a result of weaker policy incentives and infrastructure availability. and real estate in newer locations • The need for ITES companies to lower operating costs (especially employee costs. and low cost manpower availability though not at the same level as Hyderabad. policy support and availability of low-cost manpower. Kochi and Kolkata too rank highly in their infrastructure offerings. Ahmedabad. On the other hand.The growth has been driven by three factors: • The desire by state governments to attract entrepreneurship. which ranks highly on availability of low cost manpower. 61 . NCR and Pune ranked low in infrastructure availability. telecom bandwidth. which resulted in the former offering attractive policy environments and incentives • The rapid improvement in key infrastructure such as power. policy incentives. and transportation Hyderabad has emerged as the most competitive city for ITES. Mumbai. Bangalore.

the sector has about 4. this growth is in line with overall global industry trends.5 percent in 2003-04.In recent years. With a growth of around 31 percent during 2004-05. the IT-Enabled Services (ITES) sector has Growth of ITES Industry Year 2000 2001 2002 2003 2004 US$ mn 565 930 1. reaching revenue of Rs. The share of captives 62 .300 3600 Estimated growth 2008 21000-24000 posted the highest growth among all the segments in India's growing software and services marketplace. The ITES industry's contribution to the nation's GDP rose from 1. and is likely to continue over the next few years. The industry.2 percent in 1997-98 to touch 3. In the ITES sector. recorded a CAGR of 28 percent for the 2000-05 periods.495 2.1215900 crores in 2004-05. which has grown almost five-fold since 2000. the captive units of global corporations continue to dominate the scene.1 percent of the GDP. According to a study conducted by Nasscom.

With growth projected at 11 percent annually. Currently employing about 106. though they have cheap labour. the ITES industry is estimated to give employment to more than one million people by 2008. other players within the industry have registered a CAGR of 13 per cent over the 2-year period . Lots of people.in ITES exports for 2005-06 is estimated to be 56 per cent. The disparity in growth rates of large Indian third party vendors (TPVs) and other players in the industry are also significant.2 trillion by 2006. at least till China catches up. they are not yet fluent in English. This is why China and Philippines have not been able to dominate the ITES market. . While large Indian players have grown exponentially over the past 2 years. Propellers for growth The Global market for ITES sector is expected to be around US $ 611 billion by 2005 and India is expected to capture at least 10% of it. Business intelligence major International Data Corporation (IDC) has predicted that the IT-enabled services market globally will account for revenues of US$ 1. with basic education and a mastery over English-this is India’s strength points out an industry expert.000 people in India. the ITES segment will be one of the most significant business opportunities for the Indian software and services industry. 63 .” Thus the Indian ITES industry remains buoyant.

is India’s weak point. Threat from Other markets: Markets like China. Watch Out For Banking and insurance is likely to provide the maximum opportunity to the ITES industry due to a high cost base and a large number of processes which can be outsourced. Protests in USA. 64 .e.Threats faced by the Industry Global Backlash The industry is facing an unprecedented backlash globally against the outsourcing of work to India. Philippines and Ireland with cheap and skilled labour pose a large threat to the Indian ITES sector Lack of Expansion The industry soon faces risks like continuously expanding the pool of talent and education. languages other than English. Lack of fluency in European languages like French. Italian i. Spanish. a US based corporation has even been forced to transfer some jobs from its Mumbai operations back to the US because of huge protests. E-Funds. UK and Australia are already rising at an alarming rate.

also offer immense growth potential.5 – 3 1. number of companies sourcing ITES and the spectrum of verticals and services lines they offer. six other verticals .5 – 4 8 .5 3 . Off shoring opportunities for Indian ITES players exist both across a wide range of processes as well as across multiple verticals. In addition. utilities. Banking and insurance are likely to provide the maximum opportunity driven by the high cost base and high extent of offshorable processes in these verticals. The Indian ITES Industry is also expected to account for 37% of the total IT software and Services export market in India by 2008. computer and pharmaceuticals. ITES opportunities by 2008 Service Lines HR Customer Care Payment services Content development and others Administration Finance Total $billion 3.3.telecom. automotive.8.5 – 2 2.5 2.ITES: Expanding opportunities Today India and Ireland surpass all other competitors in terms of employment.5 – 3 21 – 24 65 . retailing.

RESEARCH METHODOLOGY 66 .

These deals with out-put analysis. The exploratory research design study is usually characterized by a hypothesis was developed about the problem.. education etc.It includes the study of product strength and weakness. ADVERTISING RESEARCH : It is concerned with the selection of effective and appropriate media and methods to measure its effectiveness. BUSINESS ECONOMIC RESEARCH: .. distribution of consumer with respect to income. MARKETING RESEARCH : It includes nature and size of market. The research design of the report is exploratory and investigative. forecasting. price and profit analysis. An effort was made together with detailed information that would help the researches 67 . SALES RESEARCH:-It includes the study of regional variation in sales. fixation of sales methods. product line decisions etc. incentives etc. profession. location. break even chart etc. The success or failure of any research report depends upon the methodology used for collecting information and data.ELEMENTS OF MARKETING RESEARCH These are the main components of marketing research: PRODUCT RESEARCH : .

B) SECONDARY DATA:Data. (ii) Detailed discussions with the senior executives and departments. (iii) The economic times. In any marketing research program data collection is very important. which has to be gathered for the first time. which are already assembled. (iv) Magazines. Data collection is an integral part of marketing information system. (ii) Different report and periodicals of soft drinks association. No detailed and definite DATA COLLECTION The success of research project depends critically on data. is Called Primary Data. Grand amount of flexibility and on ad-box variability.to formulate specific question with the help of primary and secondary data. are called secondary data:TOOLS FOR COLLECTING SECONDARY DATA: (i) Organization annual report. 68 . A) PRIMARY DATA:Information. TOOLS USED FOR COLLECTING PRIMARY DATA: (i) Open ended questionnaire and interviews.

SOURCES OF DATA COLLECTION The data are collected from Both Primary and Secondary Sources. Chutmalpur. and Deoband. Saharanpur. Primary Data: Primary data has been collected on the basis: Direct interview with retailers and Distributors of Dehradun Gather information through Questionnaire Through telephonic conversation 69 . the major difficulty was that it was not possible to visit the corporate plant at Bombay. For survey I have taken the sample Size of 3000 retailers of whole Dehradun Zone Which Includes Haridwar.To get accurate information different types of functions were performed. However. Although a cherished desire persisted above mentioned constraint hindered the progress of this project. The most important limitations. The data were available on certain aspects but sufficient date and satisfactory progress report could not be made available. SAMPLE SIZE & AREA OF WORK The methodology used to analyze the project is mainly based on survey method through questionnaire and direct contact with different retailers and distributors. which come on. the way of investigations was lack of time. Kotdwar. Rishikesh.

In Saharanpur the market is good & there is a great competition for Airtel in the market by other competitors.S distribution system is not good.As network increases customers also increases. They are regularly going to those Remote areas & outer areas of Saharanpur city where our F. Some places are those where he field sales executives don’t come on their designated days. We prepared a database of Airtel so that company could analyze data and take corrective measures so as to enhance the visibility share of airtel in the market.We made a questionnaire for this survey so as to identify the problems of the retailers & the market share/ visibility index of Bharti Airtel ltd.O. From last 4 to 5 months the standard of services provided by Airtel is decreasing day-byday. They are not at their designated places. Our sale is increasing or we are getting profit is only because of some of good schemes.S.Secondary Data: Internet sites Magazines Newspaper ANALYSIS AND FINDINGS In analysis & findings we have done a market survey of Saharanpur city where we meet the distributor as well as the respective retailers’ . many retailers complained for delay in p. We had issued the boards but there are issued on paper only. 70 .s distribution. In Saharanpur Vodaphone Essar group is giving great competition to us by their active sales & promotional scheme. By this the customer base of Airtel is decreasing.E go once in a blue moon. They are increasing their customer base by installing new towers .o. The P.

PROBLEMS RELATED TO GLOWSIGN BOARD 71 .

14% retailers have glow sign boards but when we reached to the shop we don’t find any glow sign board their. board is depreciated etc.S MATERIAL 72 . PROBLEMS RELATED TO P. 10% retailers in the city don’t have enough space for glow sign boards.48% retailers required glow sign boards & they have already applied for glow sign boards but yet not received.s.b gsb provided require g.O.b names problems gsb does not work 14% 14% 10% 9% 5% 48% In Saharanpur city only 14% retailers have glow sign boards.problems related to glow sign board 60% 50% percentage share 40% 30% 20% 10% 0% have g.s.b with but not space for wrong found g.s.b not enough g.5% boards are not in working condition means tube is fused.s. 9% boards are of wrong name boards for which retailers are regularly complaining but no response results.

PROBLEMS RELATED TO CLAIMS 73 .3 0.o.it means rest 40% don’t not receive the p.1 0 pos timely provided pos not timely provided PROBLEM pos not provided 18% 22% 60% Series3 Series2 Series1 Problems related to point of sale material (p.O.O.S material in time .S material in time & 22% don’t get the material. As per our survey is concerned 18% retailer do not receive P.4 0. which are also a big part.s) is that only 60% retailers receive P.2 0.o.O.5 PERCENTAGE 0.PROBLEM RELATED TO P.s material in time or they don’t receive the material.7 0.6 0. This affects our sale very much & our competitors are encashing this opportunity. This shows that we are not covering the rest 40% retailers.S MATERIAL 0.

00% 50.00% 20.00% 30.00% 0. PROBLEMS RELATED TO NETWORK 74 .issues related to claims 80.75% retailers says that they have pending claims with the company.25% In problems related to claims 30. As per the survey is a concerned 69. Retailers have pending claims with the company & with old distributor.00% 10.00% 70.25% retailer don’t have claims? In Saharanpur city problem related to claim is a big issue.00% Persons having claims claims No claims 30.00% percentage 40.00% 60.75% Series1 69. They don’t know who will settle their claims either company or by the distributors.

LAPU STATUS 75 . But in some areas the frequency of the tower is low so there is low signal problem. In the outer areas of Saharanpur city 8% areas have no network coverage. In some areas of Saharanpur only 2% areas have low signals. The network of airtel in the city is good.Problem related to network 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 90% Percentage Series1 8% Network coverage area No Network area Network Problem 2% low signals In problems related to network 90% area of the Saharanpur city is covered by the network of Airtel. So the numbers of customers are very few in those areas.

28 retailers required lapu & they have applied for the lapu facility.27 retailers are those who don’t have lapu facility. PROBLEM RELATED WITH LAPU 76 .LAPU 400 350 300 250 RETAILERS 200 150 100 50 0 HAVE LAPU LAPU REQUIRED LAPU STATUS DON'T HAVE LAPU 28 27 Series1 375 In Saharanpur city out of 430 retailers only 375 retailers have lapu.

Rest 96% retailers have no problem.2% retailer’s have lost but they don’t receive the new one. VISIBILITY INDEX 77 .PROBLEM RELATED WITH LAPU 120% 100% 80% PERCENTAGE 60% 40% 20% 2% 0% lapu reversal lapu lost PROBLEMS no problem 2% Series1 96% In problems related with lapu 2% retailers have problem of lapu reversal.

N.All this shows that Airtel have got biggest part in the market visibility.S.N.L with a market visibility of 4%. MARKET SHARE 78 .L 5% 4% IDEA 9% AIRTEL HUTCH AIRTEL 55% IDEA B. HUTCH is the first biggest competitor of Airtel with a market visibility of 27%.S.L TATA HUTCH 27% In visibility index we find that AIRTEL have a market visibility of 55% in the Saharanpur city. TATA is the fourth competitor of Airtel with a market visibility of 5%.N.IDEA has a market visibility of 9% & comes on third stand.S.VISIBILITY INDEX TATA B. Then comes government owned B.

MARKET SHARE 14% 32% AIRTEL HUTCH BSNL 5% TATA IDEA RELIANCE 23% 16% 10% Market share of AIRTEL in Saharanpur city is 32% then comes BSNL with market share of 23% .Hutch & reliance have 16% & 14% respectively. IDEA has market share of 10% while TATA INDICOM has a market share of 5%. RECOMMENDATIONS 79 .

Claims should be settled as early as possible because delay causes irritation in the minds of retailers. 3. management should have a feedback system which can link them directly to retailers. 2. Point of sales materials should be checked timely so that they can be maintained accordingly. 5. Distributors should keep manpower accordingly. From management side. The market position of airtel is very strong but it has not been capitalized properly because of poor supervision of distributors .1. This will help them gaining confidence of retailers and solving their problems. which causes dissatisfaction on the part of retailers. CONCLUSION 80 . There should be adequate personnel to look after the market. 6. 4.distributors should also keep in mind the far flung areas and should cater it properly because rural markets are emerging as great source of increasing volumes. A regular comparative study of the market should be taken at regular intervals because it will give insight information about our market share.

3. Airtel is the most trusted brand & Majority of Airtel customers are not ready to switch to any other service provider as they are completely satisfied with the products and services offered by it . 5. 1. I have concluded this project as. Lack of sales force with distributors creates lots of unnecessary hackles. Bifurcation of paper recharge and lapu creates lots of problems for Retailers. 2. Annexure BHARTI AIRTEL LIMITED 81 .After the Finding and analysis of the gathered information and data. Far flung areas are not managed properly.. Management is able to develop cordial relationship with retailers but the claim settlement process is slow and not conducive to retailers. at last I have reached on the conclusion part of the Project. 4..

S. General information: a. Does the retail shop have Non-lit boards Yes [ 4. visits on their designated days? Yes [ ] No [ ] 7. Location & Phone No.O.E & F. Brands available in your shop? 82 . Problem Yes [ Working [ ] ] No [ Not working [ ] ] ______________x_______________ ______________________________ ] No [ ] 3. Does the retail outlet have all airtel promotional materialsa. Have you assigned a proper / permanent place for Airtel promotional material? Yes [ No [ ] ] ] ___________x______________ If yes. Retailers Name: ___________________________________ b. ____________________________________ d. ____________________________________ 2. If yes then c.S materials timely available? 6. Size of the board i.E.C. Does the F. Is the place P . Glow sign board b. Name of the Retail Outlet ___________________________________ c. Do you receive stocks as per the order? Lapu [ ] Sim [ ] PRC [ ] 8. Contact / Lapu No.QUESTIONNAIRE • Visibility index • Problem identification 1. the place is:a) Easy to locate [ b) Difficult to locate [ Yes [ ] c) Not visible [ ] No [ ] ] 5.

Rank these companies on the basis of your monthly sale (1-6) Airtel [ ] Hutch [ ] Idea [ ] Reliance [ ] Tata Indicom [ ] Bsnl [ ] Size of various glow sign boards available in the shop :Airtel ____________x________________ Hutch ____________x________________ Idea ____________x________________ Reliance ____________x________________ Tata Indicom ____________x________________ Bsnl ____________x________________ ] ] 12. 13. What are the problems faces by you? _______________________________________________ _______________________________________________ BIBLIOGRAPHY 83 .Airtel [ Tata Indicom [ ] ] Hutch [ Reliance [ ] ] Idea [ BSNL [ ] ] 9. What is the monthly sale of Airtel recharge a) Vouchers _____________ b) Lapoo_________________ 11. Rate the distributor on the basis of your satisfaction level:Very good [ ] Good [ ] Average [ ] Poor [ 15. Number of Airtel connections sold by you per month? ___________ 10. Rate the Airtel on the basis of your satisfaction level:Very good [ ] Good [ ] Average [ ] Poor [ 14.

com 2) www.gov.org 3) www.com 4) www.com 6) www.in 7) www.1) www.airtel.indiainfoline.com 84 .tdsat.in 5) www.nasscom.coai.bhartiteleventure.trai.

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