Retail Management Project project


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INTRODUCTION BHARTI AIRTEL LTD THE INDIAN TELECOM SECTOR India’s telecommunication network is the third largest in the world on the basis of its customer base and it has one of the lowest tariffs in the world enabled by the hyper-competition in its market.18 billion).37 million users as of May 2012.921 crores (US$62..26 billion) for 2010–11 financial year. while revenues from telecom equipment segment stood at 117. internet and broadcasting. .039 crore (US$21. direct employment for2. India has the world’s second-largest mobile phone user base with over 929.8 million people and for 7 million indirectly.207 crores (US$51. and it has now become one of the most competitive telecom markets in the world.43 billion) in 2012 at a growth rate of over 26 per cent. and generated employment opportunities for about 10 million people during the same period. The total revenue of the Indian telecom sector grew by 7% to 283. The industry has been grown size of 344. Major sectors of the Indian telecommunication industry are telephony. The Indian telecom industry underwent significant market liberalization in the 1990s. According to analysts. It has the world’s third-largest Internet user-base with over 121 million as of December 2011.

3G and 4G services.. VALUES: Airtel aims to work towards their vision. recognizing the breadth and depth of the communities they serve. was incorporated on the 7th of July. They work with them. sales and financial operations. Mr.Telecommunication has supported the socioeconomic development of India and has played a significant role to narrow down the rural-urban digital divide to some extent. sharing the same joys and the same pains. They never forget that customers are why they exist. Sunil Mittal jumped at the opportunity provided when the government opened up the sector and allowed private players to provide telecom services. driven by their values of AIR . Respectful: They live the same lives as their customers. It is the largest Indian telecommunications company and it operates in more than 20countries across South Asia and Africa offering 2G. commonly known as Airtel. Bharti Airtel Ltd accepted every opportunity provided by this new policy to evolve into India’s largest telecommunications company and one of India’s most respected brands.if it can’t be done. anticipating. Innovation and an entrepreneurial spirit drives them . It is considered to be the first mobile firm in the world to outsource everything except marketing. VISION: Airtel’s vision is to enrich the lives of their customers. adapting and delivering solutions that enrich their lives. energy and a can- do attitude to help their customers realize their dreams. always open and honest. Alive: Airtel is alive to the needs of their customers. In the early years. Bharti Airtel Ltd. . 1995 as a Public Limited Company and one of the first companies to enter the Telecom Services business in India. they’ll find a way. Their obsession is to win customers for life through an exceptional experience. MISSION: Hunger to win customers for life.Alive. Inclusive: Airtel is for everyone -Airtel champion diversity. Bharti Airtel Ltd established itself as a supplier of basic telecom equipment. They act with due humility. They do this by having an open mind and embracing change. with 320 million subscribers as of 9th August 2016. BHARTI AIRTEL LTD. Inclusive & Respectful. It is the largest cellular service provider in India. They act with passion. to achieve mutual respect.

enterprise business solutions.Airtel now offers a variety of services to its consumers including 4G services in select cities.4 Billion Global 20 countries presence 333 Pb data usage over revenue in FY2014-15 across the globe in FY2014-15 . Mobile data services. #1 #2 # #3 Telecom operator in Telecom operator in Mobile operator in India Africa global 310 + million 16% population 80 + Million Wireless addressable is data connection in Asia Mobile subscribers in and Africa connected through Asia Airtel network 920. etc.Airtel Money. Tele media.

Products Available in this store  Post & Prepaid SIM  Post & Prepaid Datacard  DTH  Wifi router  Mifi router Service in this store  Airtel pay Bank  Broadband payment RETAIL FORMAT Classification of Retailers Store based retailers Non store based retailers Ownership Chain store Airtel TARGET AUDIENCE . Seethammal Extension. it was started in five years before. Teynampet. CHAPTER I AIRTEL STORE -Telecommunication service provider Address: 48. In this address. KB Dasan Road. Chennai-600018 This is one of the direct branch from Bharti Airtel Ltd.

As a step in that direction. the supply chain function has been created with mandate to develop partner relationships to maximize mutual opportunities for growth and profitability.  This store targeting mostly employee’s in that area.  In this store 70% customers are employee’s and 20 % customers are students Prepaid connection Target  College students Postpaid connection  Working people and small organization’s SUPPLY CHAIN MANAGEMENT Manufacturing Unit Bharti Airtel understands the importance of remain competitive in a dynamic business environment. Manufacturing Unit/ Tie Up company Vendors Sub-Vendors Retail store Consumers SIM CARD DATA CARD Manufacturer Tie up company’s (Huawei & ZTE) . The SCM organization has a central core team of supply chain subject matter experts and execution terms operating under different business divisions across the country.

INVENTORIES  They are maintaing one month Inventries COMPETITORS  Vodafone  Reliance JIO Vodafone and Reliance has retail store 2km near by Airtel retail store. Tender Vendor Vendor Retail shop  Retail Shop  Normally Airtel don’t have manufacturing plant for sim card and data card.  Airtel was tie up with Huawei and ZTE who chinese multinational telecommunications equipment and service they are doing 100% outsoursing for products. .

PORTERS VALUE CHAIN MODEL Wide network coverage as they own their network Infrastructure Inbound logistics M.GPS tracking for B2B Marketing and sales Android platform based HTC mobile unique marketing strategy.commerce Operations Outbound logistics Aero mobile and MATE.low STD rates.Trend Post sales stetters Bill Payments and indian rail tickets using M-commerce CHAPTER II .

BSNL. New operators reducing their costs to get better position in the market and in turn the big players like Airtel. Vodafone also have to compete by introducing low tariff plans.PORTERS FIVE FORCES Low Threat of new entrants High Low High Competitive Bargaining Bargaining Rivalry with an power of power of industry customers supplier Threat of High substitutes products Competitive Rivalry with an industry Airtel has strong competitor like VODAFONE.All these companies are providing same services with the same capabilities and companies like Reliance is providing at less rate. Threat of new entrants . IDEA. Price war in this industry has commoditized the market that branding has taken a backseat. The presence of strong competitors is major threat for its successful survival. Operators increased its investment in last few years. Price war is really very fierce in telecom industry. Initially. RELIANCE. it had only fewer competitors but now this figure has crossed to more than ten. they working hard to expand its network.

However.Current telecom technologies need heavy investment so chances of success for new operators are less. The most common forms of entry barriers.  Customer is price sensitive: High level of competition among the companies. in term of net additions during the quarter (April 2015 to June 2015). Buyer is getting benefit everywhere due to price war amongst the companies. Bargaining power of customers Subscriber is not purchase in bulk but still can easily go for better quality. Companies try to increase their subscriber base at drastic rate. Airtel is at 2nd position The following points influence the power of buyer: Lack of differentiation among the service provider: As phone and data service does not vary much regardless of which companies are selling them.  Huge license fee and high gestation period reduces the threat of new entrant and discourages investment in the telecom sector. Subscribers’ position is strong. coverage and rates. Airtel is the leading operator in number of subscribers.  Competitors can easily access distributor and make out Work for them. Idea recorded the highest growth.  Cut throat competition: Increase in new foreign and domestic companies. except intrinsic physical or legal obstacles. every companies is offering low tariffs with best services Bargaining power of supplier . are as follows:  Distribution channels: These Channels providing a major determining factor.  Economies of scale: In these types of industries the economies of scale exist from the supplier side.

Yahoo messenger. from these websites or app anyone can easily talk anywhere in the world with the help of Internet. This basically helps them to reduce the initial investment a lot. Because of substitute goods companies have to decline their rates. Way2sms. WhatsApp. The cable companies. Skype. Shared tower infrastructure: Technology has helped them to share the tower infrastructure. Cable Tv and Satellite operators now compete for buyers. and satellite links can substitute for high-speed business networking needs. with their own direct lines into homes. Video conferencing. for that they have to give high salary because of this reason companies does not hire more skilled engineers.The advantage and disadvantage to all service providers is equal that may be in human resource or products. offer broadband services. STRATEGY PLANNING PROCESS . which put the companies into weaker side. Threat of substitutes products Substitute Products are easily available. The substitutes for telecom industries are as follows: Products and services from non-traditional telecom industries is serious substitution threats. These products is a great threat for established companies. Need of good engineers for research.

Mission.Three important factors:  Formulation  Implementation Where are we  Evaluation now? Phase One Where are we going? Phase Two Strategy planning process How did we get there? Phase Three Phase Four Are we on track? Strategy Planing Process Vision.Objectives and Targets Environmental Analysis Internal & External Strategy matrix Action Plan ENVIRONMENTAL ANALYSIS SWOT Analysis Performance tracking/Review .

BSNL).Strength  Strong brand image  Attractive infrastructure  Variety of services (Prepaid. Broadband)  Convenience location for customers (Company employees. it can see slump in subscriber base in the next fiscal year with PAN India MNP applicable from May 3rd 2015. Flat’s people) Weakness  Product variety is available but more SKUs are not present due to inefficient back end infrastructure Oppurtunities  Expand their store  Low broadband penetration Threats  Strong and direct competitors (Reliance Jio. DTH.  Operating cost are too high.  MNP gives the customer independence to change the service provider while retaining the number and as Airtel charges are premium over other service providers. BCG Matrix . students.( Vodafone and Reliance has retail stores 2km nearby Airtel retail store. Bill Payment. Postpaid. Vodafone.

Tele-media services – fixed-line services are dogs since there is a phenomenal decrease in the services in the industry as a whole. BCG has two dimensions. High-speed broadband which is question mark since it has best in class network in teynampet further store investment can increase their market share & will help it to move to stars. Mobile services (2G. KB Dasan Road. BCG analysis helps avoid a strategy mistake made frequently that is of measuring the performance of different products on the basis of a single criteria like. Framework assumes that an increase in relative market share will result in an increase in generation of cash. market growth and market share. Generic growth rate.BCG is based on product life cycle theory that is used to explain how different products should be prioritized in a company’s portfolio.3G. Postpaid data connection are cash cows STORE LOCATION Address: 48. These dimensions are used to create a quadrant matrix in which all the products of a company’s product portfolio are categorized into four categories.4G)are stars. Chennai-600018 . Seethammal Extension. Because of mobile services bringing more revenue for store from students and employees. Teynampet.

Around this store there is lot of industries which are IT industries.Ltd  ICICI bank cenotaph road  Brainware biosolutions ltd  Ceasefire industries ltd  Noble tech Industries Important Flats in that Area:  Swarna Flats  Prakasm Flats  Prajwal Flats  ND Flats They can easily interact with students and organization and there is good opportunity to expand their business.  Lucid Technologies & Solutions Pvt. SIET college very close from this store. Ltd. TRADE AREA ANALYSIS Majority of customers comes from these following areas.  Twinkle Software Solutions Private Limited  Multivista Global Pvt. Merits Top IT & Small Companies in that area. More than 15 companies and 10+Flats are located in that area.  SIET college . Small scale industries are closely located.Ltd  Amnet Systems Private Limited  Hacer Software Solutions  ASE structure design Pvt.

Chennai. Chennai. Chennai – 600018 Approximately 12% revenue comes from this college students through postpaid. Teynampet. Ltd Address: Rajam Towers 45. K B Dasan Road. Guna Complex. Lubdhi Colony. Tamil Nadu 600018 ND Flats Address: 49. Multivista Global Pvt.. Teynampet. Tamil Nadu 600018 Approximatly  Swarna Flats Address: Eldams Road. Tamil Nadu 600086 . Muthiah Mudali Street. Chokkalingam Nagar. Teynampet. Teynampet. Chennai. 6th Floor Annexe 1.Address: No 56-K Old No 310. prepaid connection  Twinkle Software Solutions Private Limited Address: 443 & 445 Anna Salai. Teynampet. Sriram Colony. KB Dasan Road. Chennai. Tamil Nadu 600018.