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Research Project Report On Marketing Strategies of Airtel
Research Project Report On Marketing Strategies of Airtel
MBA
SESSION 2008-2010
DEPTT. OF MANAGEMENT STUDIES
College
Logo
COLLEGE NAME
STUDENT DECLARATION
1
I, YOUR NAME, student of MBA here by declared that the research
this report is based on the data collected by me. I have not submitted
examination or degree.
to each and every one of them but a whole hearted attempt would
project successfully.
EXECUTIVE SUMMARY
provided by Bharti Airtel. The research was done for the corporate
Corporate Sales Dept. and collect the feedback from the clients but
Finally the results of the research verify the fact that keeping the
horizons.
TABLE OF CONTENTS
3. INTRODUCTION
4. TARIFF STRUCTURE
5. PROMOTIONAL STRATEGY
6. MARKET SITUATION
7. COMPETITIVE SITUATION
9. OBJECTIVE
11. LIMITATION
13. CONCLUSION
14. BIBLIOGRAPHY
15. QUESTIONNAIRE
ACKOWLEDGEMENT
Achievement is finding out what you would be then doing, what you
have to do. The higher the summit, the harder is the climb. The goal
was fixed and we began with a determined resolved and put in
ceaseless sustained hard work. Greater challenge, greater was our
effort to overcome it.
This project work, which is my first step in the field of
professionalization, has been successfully accomplished only because
of my timely support of well-wishers. I would like to pay my sincere
regards and thanks to those, who directed me at every step in my
project work.
I would also like to thank the faculty members and the staff members
of R . S DISTRIBUTORS MORADABAD for their kind support
and help during the project.
INTRODUCTION TO THE TOPIC
increase to 20% in the next five years beating the Govt. target by
(over 164% p.a.) in India. With more than 33 million users (both
CDMA and GSM), wireless is the principal growth engine of the
Bharti, Vodafone, Tata and Reliance and with the State sector
in tariffs. There has been almost 74% in cell phone charges, 70%
fully functional.
terms of subscriber base at the end of the fiscal ending March 31,
taken by surprise and did not take effective steps to counter it, till
cell club has reported a 7.92% growth, the highest growth in any
lakh. While the cellular industry has been on roll for the first three
lakh monthly additions in the third quarter, the first two months of
markets in the world. After two rather difficult years, the past 12
1996 with the licensing of new local fixed line and mobile service
Policy (1999) that has had the most radical impact on the
on prices with calls currently costing less than 9 cents per minute.
This means that service costs have fallen by 60 per cent since the
first GSM networks became live in 1995. It also helps explain why
a recent Telecom Asia survey revealed that more than 70 per cent
reasonable level.
more than 40 networks, which cover the seven largest cities, over
7000 towns and several Lacs villages. Such depth of coverage has
supplemented by a further Rs. 300 billion over the next five years.
being rolled out. In the year ahead, GSM India will work with its
India is expected to have 145 million GSM (global system for mobile
plans."
Indias GSM mobile firms revenue up 30 pct
but said future growth rates could slow because of heavy taxes on
of infrastructure
one of the lowest call rates in the world. But the monthly average
GSM operators are not the only ones who are worried about the
incidentally also have their other foot firmly placed in the CDMA
pie, are beginning to lose some sleep over what was earlier termed
Apart from the strong success of the two CDMA operators whose
service for data connectivity in last three years, has the vendors
grow by 25-30 per cent, an optimism that its trying to make GSM
CDMA players had launched their services with CDMA 2000 1X-
mobile.
rates for GSM Evolution) and leave GPRS behind as a dream gone
sour.
Only Airtel, Vodafone, BPL Mobile and Idea Cellular had launched
GPRS, but the data transfer speeds of GPRS have been abysmal.
The field trials gave a speed of around 54 kbps, but the actual
speeds have not exceeded 14-18 kbps, a major reason why GPRS
growth has been so slow. As against the total GSM cellular base of
5.61 crore, the country has between 2,80,000 lakh GPRS users
only. In comparison, the two CDMA operators have about 120 lakh
are available as to how many use these for data services, the figure
early June, sources said. The company was the first to conduct
too held EDGE field trials in February this year with its vendor
Nokia. Vodafone and BPL are yet to hold the trials. The two
180 kbps (as against the theoretical speed of around 380 kbps)
The scalable cost of migrating from GPRS to EDGE is not too high
Alan Hadden predicted that GSM growth will far outstrip CDMA as
December 2004. According to GSA, there are over 1.1 billion GSM
EDGE.
technologies. People are using their phones for much more than
can run 3G like services in the existing spectrum for the operators
said Hadden.
know for sure that almost 20-25 per cent of the revenue for some
across Asia, the Americas and Europe. At least, 16 new 1X and six
operators have been giving out handsets that can give hi-speed
data transfer, same has not been the case with GSM. Even now,
all this.
than what GSM players intend to deliver through their EDGE for
their subscribers.
happen in India, but India will probably be more like the Chinese
export its products to the USA. Bharti has also put its footsteps
S E R V I C E S
Airtel Prepaid
Airtel Prepaid, the Ready Cellular Card from Airtel comes to you
provider. Going mobile with Airtel Prepaid is a new way of life. With
You can control your Airtel Prepaid like never before. No more
stay!
the end of each chargeable call. You can also call 123 from your
*123#, press 'OK' or 'YES' button and your account balance will be
as you make calls or use any other chargeable service. Choose the
Airtel Prepaid Recharge Coupon thats right for you, from a variety
Prepaid Roaming
stay connected no matter wherever you are. You can also send or
receive MMS, check your email and access other GPRS services
traveling abroad you can receive calls & send or receive SMS.
Other Services
Airtel brings you, a wide range of Services that will change the way
you communicate. Try them and discover a whole new world of fun
and excitement.
Call waiting, call hold, call divert and Caller Line Identification
Voice Mail
the phone, Airtel Voicemail will answer your calls and record a
message. The best part is that there's no extra monthly cost for
setting up Voicemail - you just pay for the phone call when you use
the service.
Send messages quickly and easily using text, if it's too noisy to talk
or you don't have much time. It's the way to share those interesting
Subscription Alerts
Get regular alerts on news, jokes, business, health and films on
NEWS> to 3333 for News, <SUB JOKE> for Jokes, <SUB BIZ> for
Business News, <SUB SPO> for Sports Alerts & <SUB VAASTU> for
Vaastu tips.
with MMS from Airtel! To activate MMS on your phone, SMS 'MMS'
Airtel Live!
with Airtel Live! Airtel brings you the latest in entertainment and
Airtel Live! WAP Services: Download the latest ring tones, games,
wallpapers, videos and much more. You can also get news clips,
watch live TV and download full songs on you phone. To get Airtel
Live! settings on your phone, SMS 'Live' to 56465 and save the
service. For e.g. say ring tones to download your favorite ring
tones. You can also choose a variety of content options like Live
a few buttons with Airtel Live! SIM based Services on your SIM
Tired of that boring old tring tring on your phone? Well now when
a friend calls, you can make them groove to the hottest new tracks
burning up the music charts with Hello Tunes from Airtel! You get
that are updated regularly. What's more you can directly call the
number for your kind of music, e.g. call 678005 for English New
and 678001 for Hindi New. This would directly take you to your
Get the tune you want, all you have to do is call 55055 and follow
Once inside the copy feature, just key in the 10-digit Airtel mobile
number you want to copy the Hello Tune from and you get the
song instead! Gift a Hello Tune to that special someone. Just call
55055 and choose the song that you want to gift. Follow the simple
voice instructions and key in the 10-digit Airtel mobile number
that you want to gift the Hello Tune to. You will get an SMS
recharging your phone with talk time. Simply walk into your
nearest Airtel Shop and walk out with your favorite song. Choose
121@airtelindia.com.
Airtel Postpaid
Airtel welcomes you to a vibrant world of unlimited opportunities.
when you want to, not just through words but ideas, emotions and
Easy Billing
Enjoy a host of rich features only with Airtel e-bill. Register free on
My Airtel section and view your monthly bill with call details for
last three months. Sort your calls between personal and official or
with Airtel. Walk into any Airtel relationship centre and make your
and pay instantly through your credit card. You can also opt for
Standing Instructions
You can give us standing instructions to debit your credit card
account for your monthly Airtel bills. All you have to do is fill the
Credit limit
Your pre-set credit limit mentioned on your monthly bill helps you
keep your mobile charges in control, keeps track of your usage and
ensures that your mobile phone is not misused. Should you exceed
balance below your credit limit. You may also choose to pay us an
Enjoy complete clarity when calling with Airtel .It offers you world
Call long distance calls in India and Overseas with STD / ISD
Airtel's roaming service allows you to stay connected and use your
GPRS - Roaming
Say it. In more than just words, with Services from Airtel
Airtel brings you a wide range of Services that will change the way
you communicate. Try them and discover a whole new world of fun
and excitement.
Call waiting, call hold, call divert and Caller Line Identification
connection!
Conference call
conference even when the other five are using a landline phone. To
A missed call alert is a SMS that you will receive for all the calls
that you missed. The SMS will detail the CLI and the time when
the call was made. To activate, dial *135*2# then press the call
Voice Mail
When your handset is switched off, or youre too busy to answer
the phone, Airtel Voicemail will answer your calls and record a
message. The best part is that there's no extra monthly cost for
setting up Voicemail - you just pay for the phone call when you use
the service.
SMS (Short Messaging Service)
Send messages quickly and easily, using text, if it's too noisy to
talk or you don't have much time. It's the way to Share those
Subscription Alerts
NEWS> for News, <SUB JOKE> for Jokes, <SUB BIZ> for Business
News, <SUB SPO> for Sports Alerts & <SUB VAASTU> for Vaastu
tips to 3333.
with MMS from Airtel! To activate MMS on your phone, SMS 'MMS'
Airtel Live!
Make your mobile the most happening entertainment destination
with Airtel Live! Airtel brings you the latest in entertainment and
wallpapers, videos and much more. You can also get news clips,
watch live TV and download full songs on you phone! To get Airtel
Live! settings on your phone SMS 'Live' to 56465 and save the
Airtel Live! Voice Services: Just Dial 56465 and say the name of
the service. For e.g. say Ring tones to download your favourite ring
tones. You can also choose a variety of content options like Live
a few buttons with Airtel Live! SIM based Services on your SIM
card menu. To download new services on your Airtel SIM, choose
services. Enjoy live TV, enhanced WAP experience and Airtel Data
Hello Tunes
Tired of that boring old tring tring on your phone? Well now when
a friend calls, you can make them groove to the hottest new tracks
burning up the music charts with Hello Tunes from Airtel! You get
that are updated regularly. What's more, you can directly call the
number for your kind of music, e.g. call 678005 for English New
and 678001 for Hindi New. This would directly take you to your
Like a tune you want, all you have to do is call 55055 and follow
Once inside the copy feature, just key in the 10-digit Airtel mobile
number you want to copy the Hello Tune from and you get the
song instead! Gift a Hello Tune to that special someone. Just call
55055 and choose the song that you want to gift. Follow the simple
that you want to gift the Hello Tune to. You will get an SMS
nearest Airtel Shop and walk out with your favourite song. Choose
STRUCTURE
Prepaid Tariffs
available, all over the city at over retail outlets including 24-hour
outlets. Airtel Prepaid Ready Cellular Card and Recharge Cards are
available, all over the city at over retail outlets including 24-hour
outlets.
Airtel Prepaid Regular
449
SUK
Pulse Rate 60 sec
ISD (Rs./min)
SMS (Rs.)
Local Rs.1.20
National Rs.2.00
International Rs.5.00
Other Details
POSTPAID
ON TIME CHARGES
Activation Charges Rs. 250
Membership Fee Rs. 250
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 524
Bill plan Charge Rs. 444
Monthly Rental Rs. 150
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 99
Airtel GSM / Landline /
Digit)
Local Rates Rs. 1.99 Rs 1.99 Rs 1.99
STD RATES
50 200 Km
200 500 Km
500 + Km
ISD
USA, Canda, Europe (Fixed Line), Rs. 7.20
Zealand
Gulf, Europe (Mobile), SAARC Rs 9.99
world
Cuba, Sao tome & Principle, Rs. 40.00
24 months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 150
Bill Plan Charge Rs. 50
Monthly Rental Rs. 150
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 50
Bissau, Diego Garcia, Nauru,
Island, Sakhalin
SMS
Local Rs 1.00
National Rs 2.00
Intentional Rs. 5.00
VAS Rs. 3.00
This Bill Plan is also available under Advance Rental of Rs. 799
for 2 years.
Local Pack
STD Pack
Airtel to other mobiles (non Airtel) & fixed lines nos. at Rs 2 / min.
Plan.
Benefits:
Pay an advance rent of Rs 499 and enjoy Airtel One Standard 150
every month for the next 2 months. All other options and charges
24 months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs 299
Bill Plan Charge Rs. 150
Monthly Rental Rs. 299
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 50
Airtel GSM / Landline /
Digit)
LOCAL RATES Re. 1.00 Rs. 1.00 Rs. 1.00
STD RATES
50-200Km Rs. 2.00 Rs. 2.40 Rs. 2.40
200 500 Km Rs. 2.00 Rs. 2.40 Rs. 2.40
500 + Km Rs. 2.00 Rs. 2.40 Rs. 2.40
ISD
USA, Canda, Europe (Fixed Line), Rs. 7.20
Zealand
Gulf, Europe (Mobile), SAARC Rs 9.99
world
Cuba, Sao tome & Principle, Rs. 40.00
months on:
News
Astrology
Health Tips
underscores the leading theme for the new brand vision, followed
along with it
category that goes beyond the Internet, SMS, roaming, IVRS, etc
- Touch Tomorrow - not only to reflect our corporate ethos but also
business strategy".
The new identity will have the logo in Red, Black and White colours
brand's presence.
this scheme will also get full talk time for the recharge coupon they
The first mover in the market was Airtel which launched its
and utility took a back seat The target segment in Delhi were
installed was for 1.5 lakh subscribers. This coupled with the steep
Airtel launched its services before Essar and skimmed the market
reach of its network and the quality of its service. However, Essar
inconsistency in advertising
Forecasting of sales
Mapping the accounts
Handling distribution
Target achievement
C. Distribution Support
1. Logistics
channel partners
2. Rental
3 Telesales
4 Audit
Organize training.
5. Retail
MARKET SEGMENTATION
income.
In evaluating different market segments the company looks at two
Airtel has targeted the premium and upper middle class. The
who value time and have the paying capacity. It Is also planning to
About 15% are foreign organisations and the rest are professionals
hard
business executive class but now that the basic viable volumes has
beer) built up and prices have declined to a certain extent they are
POSITIONING
present the cellular phone market has reached the maturity stage.
free Airtime services and other concessions to make the prices and
customer service.
Only price doesn't serve as an effective differentiator, value added
able to answer a call for some reason the caller can leave messages
in the voice mail box which can be later retrieved by the user
This service helps the subscriber to send and receive Faxes, access
who travel to Delhi often and those who want to control the
v) Caller ID
listed number.
subscribers but also get them to use the mobile facility frequently.
available, simply insert the SIM card of the local operator Into your
each city
** Semi automatic roaming means one card has the facility for
different cities.
to prevent them
efficiently.
customers.
Airtel realises that attracting people 'Is easy but converting them
customer.
Generally, the cellular services are more expensive than the land
line based telephone services. This is due to the reason that the
operating companies are required to pay a fee to the government
brand preferences.
equity for Airtel. Since the cellular phone category itself is too
image of the service provider counts a great deal. Given the Cell
as an effective differentiator
In the next phase the campaign associated Airtel with Cellular only
with Airtel logos roamed the city, handing out brochures about
direct callers were sent out. When the name was well entrenched
60% of them would name Airtel. As for aided it -is 100% (by giving
by the percentage score of the brand on the above aided and the
thriving brand.
and a game plan with due regard to Its competitor. Airtel 's
campaign strategy is designed keeping in mind its marketing
strategy. The tone, tenor and the stance of the visual ads are
The status of the product in terms of its life cycle has just reached
The diagram on the left hand side shows the percentage of the
users classified into heavy, medium and low categories. The right
hand side shows the revenue share earned from the three types of
users.
values its heavy users the most and constantly indulges in service
phones has to be roped in. It is for this reason that the service
audience.
are .
(i) People who have booked Airtel services have been treated to
Company
Franchisee Distributor
Dealers
Dealer
Customer
Customer
can have any number of dealers under him as long as the person is
from the customers and they are sent through the liaison officer on
Target set for distributors and the dealers is 100 -150 activations
per month. Hence the dealers can also go for their own promotions
for the handset and proof of residence has only to wait an hour
office in Delhi.
WHAT DOES AIRTEL OFFER?
With Airtel, the subscriber wouldn't just get a personal phone that
Just plug your SIM card into your cellular phone, enter the PIN
the world reveals that the growth in the market is Initially slow
MARKETING OBJECTIVES
market share
Strategies
market competitors
distribution.
with customers.
OBJECTIVES OF THE STUDY
Objectives:
Service Provider.
RESEARCH METHODOLOGY
a) Primary Sources
I have met retailers of the Airtel of the company and have been able
and the buying patterns of the product. Their input has been
valuable.
b) Secondary Sources
source has been the Internet and particularly the companies own
website.
LIMITATIONS
Every attempt will be taken to obtain the error free and meaningful
limitations-
interviewer.
Company Yes No
Airtel 4 1
Vodafone 4 1
Idea 4 1
MTNL 4 1
1
Yes
4
4
0 2 4 6 8 10 12 14 16 18
providers?
Company Yes No
Airtel 4 1
Vodafone 3 2
Idea 3 2
MTNL 5 --
service providers find that the governments telecom policy has had
Company Yes No
Airtel 2 3
Vodafone 3 2
Idea 3 2
MTNL 2 3
2.5
2 AirTel
Vodafone
1.5 Idea
MTNL
1
0.5
0
Yes No
4. To what extent, does you find that mobile service providers
(1-5) (6-10)
Airtel 3 2
Vodafone 2 3
Idea 2 3
MTNL 3 2
interviewed people in all the above four major the mobile service
2.5
AirTel
2
Vodafone
1.5 Idea
1 MTNL
0.5
0
To some extent To great extent
CONSUMER LEVEL
system?
Company Yes No
Airtel 9 1
Vodafone 8 2
Idea 8 2
MTNL 5 5
3
2
No
2
2 MTNL
Idea
Vodafone
2 AirTel
3
Yes
3
3
2. Do you find that mobile service providers as the most
Company Yes No
Airtel 9 1
Vodafone 7 3
Idea 8 2
MTNL 8 2
No
1
Yes
9
0 5 10 15 20 25 30 35
communications?
Company Yes No
Airtel 10 --
Vodafone 8 2
Idea 10 --
MTNL 8 2
0
No
2
0 MTNL
Idea
Vodafone
8 AirTel
10
Yes
8
10
SWOT ANALYSIS
STRENGTHS
Cost advantage
Entrepreneurial zeal
WEAKNESSES
To prove credibility
Price pressures
Awareness
THREATS
Foreign investment
Other competition
CONCLUSION
preferred to remain with Airtel. Also good no. of users who were
company. Also the company is now providing more services like the
door to door services which is you dial the Airtel customer care and
Seshadri Mohan and Ravi Jain. Two User Location Strategies for
Boston, 1993.
Vodafone
Airtel
Idea
MTNL
QUESTIONNAIRE
NAME: ____________________________________
ADDRESS: ____________________________________
OCCUPATION: ____________________________________
Company Yes No
Airtel
Vodafone
Idea
MTNL
providers?
Company Yes No
Airtel
Vodafone
Idea
MTNL
Company Yes No
Airtel
Vodafone
Idea
MTNL
(1-5) (6-10)
Airtel
Vodafone
Idea
MTNL
CONSUMER LEVEL
system?
Company Yes No
Airtel
Vodafone
Idea
MTNL
Company Yes No
Airtel
Vodafone
Idea
MTNL
communications?
Company Yes No
Airtel
Vodafone
Idea
MTNL